The man smuggled several snake species, including a corn snake (not pictured).
erllre/Getty Images
China's Customs said it seized 104 snakes from a man traveling to mainland China on Tuesday.
The man tried to smuggle the snakes in his pants pockets.
It's illegal to bring non-native species into China without permission.
A man tried to smuggle more than 100 live snakes to mainland China in his pants with just adhesive tape and canvas bags.
The country's customs authority posted details about the incident on Tuesday in a post to Weibo,China's version of X.
Officials said a male passenger entered mainland China through the Huanggang Port at Futian before officers intercepted him and conducted an inspection. Futian is in Shenzhen's downtown core and sits on the China-Hong Kong border.
Officers discovered the man had worn six snake-infested canvas bags sealed with adhesive tape in his pants pockets. The bags had several species, including a milk snake, the western pig-nosed snake, and a corn snake. None of the snakes are venomous, but some are not native to China.
"After being opened, each bag was found to contain a number of live snakes of different colors and forms. After counting, there were a total of 104 snakes," the post, translated to English, reads.
Footage shared by China's customs showed the snakes, which tended to be small and thin in size.
China's biosafety and quarantine laws prohibit the carrying or mailing of animals into the country and bar travelers from moving non-native species past border checkpoints without permission.
In its social media post,the customs authority said it may pursue legal action against those involved.
It is unclear where the snakes were headed for for what purpose.
Western-supplied precision weapons such as the M142 HIMARS in Ukraine are rendered less effective against electronic counterwarfare.
Serhii Mykhalchuk/Global Images Ukraine via Getty Images
Russia has been jamming precision Western weapons in Ukraine through its electronic counterwarfare.
The situation has shown there are still uses for unguided artillery, a Finnish general told WSH.
"They are immune to any type of jamming," he said.
Russia's thwarting of precision weapons provided to Ukraine by the West shows there are still use cases for unguided artillery in technologically advanced warfare, a Finnish general told The Wall Street Journal.
Weapons guided by a GPS system provide precision strikes against enemy targets and have been crucial for some of Ukraine's prior countermeasures against Russia during the war.
The M142 High Mobility Artillery Rocket System (HIMARS), which can hit targets up to 50 miles away, was once seen as a vital lifeline for Ukraine in order to stop Russia's advance in the summer of 2022.
But those same precision weapons, which are being supplied by the West, are being rendered ineffective as Russia adapts on the battlefield and engages in electronic warfare.
The methods involve jamming or spoofing the GPS system in weapons so that they're led off course. These electronic countermeasures are often cheap and can also be used against drones, Business Insider previously reported. Both Ukraine and Russia have engaged in electronic warfare.
Lt. Gen. Esa Pulkkinen, the permanent secretary of Finland's defense ministry, told The Journal that electronic warfare has shown that there are still uses for less-advanced, unguided artillery shells.
"They are immune to any type of jamming, and they will go to target regardless of what type of electronic warfare capability there may be," Pulkkinen told The Journal.
According to The New York Times, precision-guided weapons have been a large point of focus for the US's broader defense strategy, but in Ukraine, the war is largely fought with unguided artillery.
As a result, the US and others in the West have ramped up production of unguided artillery shells. Pentagon officials have said that the US aims to increase production of 155mm artillery shells, which are shot out of howitzers, to 100,000 per month by 2025.
Lee Se-Dol, a Go master who was defeated by an AI program in 2016, believes AI could take away people's value in creativity and originality.
Google via Getty Images
Lee Se-Dol, a South Korean Go legend, was defeated by an AI program in 2016.
The Go player told the New York Times that his loss brought a profound realization of AI's progress.
Lee is concerned that AI may take away people's value in creativity and originality.
One of the world's greatest Go players who was defeated by an artificial intelligence program warns that the technology may come with a rude awakening for humans as it advances.
Lee Se-Dolis a South Korean legend in the game of Go, which is widely considered to be a more complex game than chess. The game, which can be played in person and online, also once posed a computational challenge for AI researchers.
In 2016, the Go world was rocked after Lee was defeated by AlphaGo, an AI program made by Google's DeepMind. Lee lost 4 out of 5 games.
"With the debut of AI in Go games, I've realized that I'm not at the top even if I become the No. 1 through frantic efforts," Lee told Yonhap News Agency at the time. "Even if I become the No. 1, there is an entity that cannot be defeated."
Lee told The New York Times in a recent interview that his loss against AlphaGo had a profound impact on his life: "Losing to AI, in a sense, meant my entire world was collapsing."
Now, he warns that the technology won't just be coming after Go players.
"I faced the issues of AI early, but it will happen for others," Lee said at an education fair in Seoul, according to The Times. "It may not be a happy ending."
Lee told the publication that he can see AI creating new jobs as it takes away others. But a larger concern for the retired Go player is what AI will do to people's appreciation for originality.
"People used to be in awe of creativity, originality, and innovation," Lee told The Times. "But since AI came, a lot of that has disappeared."
Since AI's rise to the mainstream, artists and some leading intellectuals have raised doubts about the technology's ability to be creative.
Noam Chomsky, a linguistics professor and philosopher, previously told Business Insider in 2023 that he was "skeptical" that artificial intelligence could make breakthroughs in studies like the arts.
Filmmaker Steven Spielberg said in an interview with Stephen Colbert that AI takes the "soul" out of creative work.
"I think the soul is unimaginable and is ineffable," Spielberg said. "And it cannot be created by any algorithm, it is just something that exists in all of us."
The Core Lithium Ltd (ASX: CXO) share price is surging higher today.
Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed yesterday trading for 9.7 cents. In late morning trade on Thursday, shares are changing hands for 10.2 cents apiece, up 5.2%.
For some context, the All Ords is up 0.9% at this same time.
In a welcome turnaround, today’s gains see the embattled Core Lithium stock up 20% since last Wednesday’s close.
Investors are bidding up the Core Lithium share price after the miner announced it had commenced reverse circulation (RC) drilling at its 100% owned Shoobridge Project, located in the Northern Territory.
The Shoobridge drilling campaign is part of Core’s FY 2025 exploration program.
Today’s announcement comes on the heels of the miner’s preliminary FY 2024 results, released yesterday.
Commenting on Core’s exploration plans following on those results, CEO Paul Brown said:
Our strategic focus will be on making Finniss a more robust operation in the future, and exploration is a key enabler of this.
In FY 2025, we will be drill testing priority targets around Finniss, potentially adding meaningful life to future lithium mining operations. We will also be advancing earlier stage, low multi-commodity exploration activities.
Today, the All Ords lithium stock announced that it is the first company to explore and drill the “prospective, potentially spodumene-rich, pegmatite systems” at Shoobridge for lithium.
Core also considers the area prospective for gold, with a known gold anomalism extending over a strike length of 4.5 kilometres. Uranium and base metals have also been found in the area.
Commenting on the commencement of the drill program that’s lifting the Core Lithium share price today, Brown said, “We are thrilled to start the first ever lithium drilling program at Shoobridge. This marks the start of an exciting FY25 exploration program for Core, and we look forward to delivering results that capture the value inherent in our tenement portfolio.”
Brown added:
We will be disciplined in our approach to exploration and pursue opportunities for meaningful mineral discoveries or with the potential for a high return on investment.
While we are firmly focussed on positioning the Finniss Lithium Project for a future restart, we are excited by projects such as Shoobridge that both support this objective and provide complementary growth opportunities.
The company highlighted that “a significant portion” of its FY 2025 exploration budget will go towards advancing and testing lithium targets with the goal of identifying substantial deposits within trucking distance of its Finniss lithium processing plant.
Despite the past week’s strong run, the Core Lithium share price remains down 89% over 12 months.
Should you invest $1,000 in Core Lithium Ltd right now?
Before you buy Core Lithium Ltd shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Core Lithium Ltd wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The S&P/ASX 200 Index (ASX: XJO) is back on form and roaring higher on Thursday.
At the time of writing, the benchmark index is up 0.95% to 7,890.6 points.
This follows a strong night on Wall Street driven by interest rate cut optimism. For example, the Dow Jones index rose 1.1%, the S&P 500 climbed 1%, and the Nasdaq stormed 1.2% higher. The latter two indices closed at new record highs.
Speaking of record highs, a number of ASX 200 shares are hitting new highs on Thursday. Let’s take a look at a handful that are setting records for their lucky shareholders today:
The Aristocrat Leisure share price is pushing higher again on Thursday. This has seen the ASX 200 gaming technology share reach a new high of $52.09. This stretches its 12-month return to an impressive 40%.
The CBA share price has hit a new record high of $130.30 this morning. This means that the shares of Australia’s largest bank are now up approximately 31% since this time last year. Incredibly, this is despite almost every major broker declaring this ASX 200 share as vastly overvalued at current levels.
The REA Group share price has breached the $200 market for the first time. In morning trade, they have climbed to a record high of $200.50. The realestate.com.au operator’s shares have risen 40% over the past 12 months.
The Telix Pharmaceuticals share price is on fire today thanks to some big news out of the United States. This has seen the radiopharmaceuticals company’s shares rocket higher and reach a new high of $20.16. Telix shares are now up approximately 80% since this time last year.
The Xero share price has continued its run and hit a new record high of $141.49. This latest gain means the cloud accounting platform provider’s shares have risen around 19% over the last 12 months. Goldman Sachs thinks this run can continue. Earlier this month, its analysts reiterated their conviction buy rating with an improved price target of $180.00.
And the rest
Other ASX 200 shares that are scaling new heights today and making their shareholders smile are retail giant JB Hi-Fi Ltd (ASX: JBH), insurance broker Steadfast Group Ltd (ASX: SDF), and enterprise technology provider TechnologyOne Ltd (ASX: TNE).
Should you invest $1,000 in Aristocrat Leisure Limited right now?
Before you buy Aristocrat Leisure Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Aristocrat Leisure Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has positions in Technology One, Telix Pharmaceuticals, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, REA Group, Steadfast Group, Technology One, Telix Pharmaceuticals, and Xero. The Motley Fool Australia has positions in and has recommended Steadfast Group and Xero. The Motley Fool Australia has recommended Jb Hi-Fi, REA Group, Technology One, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
A2 Milk Co Ltd (ASX: A2M) shares are in the green today.
Shares in the S&P/ASX 200 Index (ASX: XJO) dairy stock closed yesterday trading for $6.82. In morning trade on Thursday, shares are swapping hands for $6.88, up 0.8%.
For some context, the ASX 200 is up 0.9% at this same time.
This comes after the company released an update on its voting intentions at today’s special Synlait Milk Ltd (ASX: SM1) shareholders’ meeting. That’s taking place at 2pm today, New Zealand time.
Here’s what’s happening.
A2 Milk shares in the green ahead of Synlait loan vote
A2 Milk shares are marching higher after the company said it has been in discussion with Synlait regarding the junior dairy stock’s recapitalisation plan. That plan includes a $130 million shareholder loan as well as Synlait’s proposed equity raising and concurrent refinancing of its bank facilities.
A2 Milk said it “continues to have concerns and will engage in discussions with Synlait in the coming weeks”.
However, management confirmed that it would vote in favour of today’s resolution.
The Synlait Milk share price is going ballistic on the news, up a whopping 50% to 34.5 cents.
If you own A2 Milk shares, you also own a slice of Synlait. A2 Milk holds almost 20% of Synlait shares.
If shareholders vote in favour today, Synlait will receive the $130 million loan from Bright Dairy, which owns around 39% of Synlait shares. Bright Dairy is not allowed to vote on the proposal under New Zealand trading rules.
Synlait said if the resolution received the green light today, it would draw down the entire loan to meet its $130 million bank payment, due on 15 July.
On 25 June, Synlait chair George Adams said, “Synlait is now progressing at pace a series of structural initiatives to address the scale of challenges we face today.”
Adams added:
We are committed to resetting Synlait’s balance sheet, with the support of Bright Dairy, to ensure we return to a position where we can deliver the growth potential we see in our core Advanced Nutrition and Foodservice businesses.
Bright Dairy director Julia Zhu said, “We are deeply committed to Synlait, believing its assets and operations to offer significant value and opportunity within regional and global dairy markets.”
Zhu continued:
This $130 million shareholder loan facility is one part of Bright’s wider support to see Synlait return to a much stronger financial and operating position, as early as practicable in this economic cycle.”
With today’s intraday gains factored in, A2 Milk shares are up 37% over 12 months.
Should you invest $1,000 in The A2 Milk Company Limited right now?
Before you buy The A2 Milk Company Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and The A2 Milk Company Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
San Quentin Rehabilitation Center in San Quentin, California, 2015.
Reuters
California officials confirm that a "potential gastrointestinal illness" has struck at San Quentin.
Four prisoners told BI that last Wednesday's boiled chicken was to blame.
A July 4th weekend lockdown affecting some 2,000 inmates is only now being lifted, they said.
Usually, when "chicken hindquarters" is on the dinner menu at San Quentin, it's good news.
"It's a very popular meal in prison," Aaron Ramzy, who is incarcerated there, told Business Insider in a phone call from his cell unit Wednesday. "You get one piece of chicken, roasted on the bone."
But last Wednesday, the welcome dish may have led to a very unwelcome result. Four men serving sentences at San Quentin say dozens of prisoners were sickened, and some 2,000 were subjected to a week of lockdown to prevent any illness from spreading.
Only on Wednesday, a full week later, were some units being taken off lockdown, they said.
In a written statement, a spokesperson for California Correctional Health Care Services confirmed that "a potential gastrointestinal illness" had resulted in a precautionary cut-back in "programming and visitation."
But the officials would not confirm any specifics, and said the cause was still under investigation.
The four men who spoke to Business Insider told similar stories.
It all started, they said, with some gnarly chicken served the day before the 4th of July holiday.
"Normally, it's prepared in the oven until it's well done," said Ramzy, 34. This chicken, though, was white with translucent skin. He said it looked undercooked.
"Hey, what is this?" Ramzy said he asked a correction officer who worked in the kitchen, which serves some 2,000 prisoners. The officer, he said, only shrugged.
"'Enjoy your food,'" Ramzy said he was told.
In the four days after eating the chicken, he said he suffered "sweats, trembling, shivering," along with even more unpleasant symptoms of diarrhea and dry-heaving.
"Oh, you ate that chicken?" he recalled officers telling him, as he lurched toward the prison medical facility. "Go ahead, go ahead and get to medical."
Ramzy said a sergeant told him some three dozen fellow residents of the prison's 600-inmate South Block needed medical attention, including electrolytes and antacids.
Luis Sigueras, 61, said he was rushed out of the prison to Marin General Hospital.
"Yes, I did eat the chicken, and I have other health problems," including heart trouble, he told Business Insider.
"They took an EKG and a CAT scan and said I had food poisoning. It was the chicken on the bone from Wednesday — they served it with mashed potatoes and cake for dessert," he said.
A doctor told him, "The next time you come here with chest pains or food poisoning, your heart is so weak you might not make it," he said.
"I told him, 'Doctor, if I gotta go, I gotta go. If God wants me, he'll take me.'"
Marty Zahorik, 74, said he, too, was sickened after eating last Wednesday's chicken. He was put on an IV and couldn't keep water down.
"Everybody said I looked like I was going to die," he said.
Zahorik said prison medical personnel told him 72 prisoners were treated for severe food poisoning.
"The food has been on a consistent downhill slide in the 22 years I've been here," he said. Portions have shrunk to subsistence levels, condiments and other extras have vanished, and for years, there's been a pigeon problem, he said.
Zahorik said as recently as Wednesday, he witnessed bird droppings on tables and broken windows in the kitchen.
About three years ago, the infestation was so bad, "We got a new sergeant, and he had a bunch of officers bring in pellet guns. And they executed the pigeons," he said.
San Quentin is California's oldest and most notorious prison. First built in 1852, it has survived waves of controversy.
The state is facing four lawsuits stemming from the 2020 transfer of prisoners infected with COVID-19 to the prison — and the coronavirus outbreak that followed, sickening 75% of the population.
Ultimately, 28 prisoners and a correctional officer died.
The prison's four cell blocks house some 3,000 people in total.
Last May, Gov. Gavin Newsom announced the facility's "transformation" from San Quentin State Prison into San Quentin Rehabilitation Center, empowering an advisory council comprised of community leaders, prison staff, and program leaders to come up with recommendations to improve conditions.
On Tuesday, the prison staff served chicken again, said Ramzy. "It was like chicken chunks over rice, with some kind of marinara sauce," he said.
He has no idea how well it was cooked or what it tasted like.
"I didn't eat it. I was scared," he said.
"I know I've done something wrong, and I'm paying my debt to society, but I'm also human," he told Business Insider Wednesday afternoon, as the lockdown began to be lifted, unit by unit.
"I have a family who loves me. I shouldn't be getting just anything on a tray. I shouldn't be subjected to poison," he said.
A spokesperson for the California Correctional Health Care Services issued this statement on Tuesday:
"We are currently investigating cases of a potential gastrointestinal illness at San Quentin Rehabilitation Center. When multiple patients in a housing unit present with symptoms consistent with a gastrointestinal illness, CDCR and CCHCS will take proactive measures to limit potential spread. This includes providing additional cleaning, education on proper handwashing procedures, and testing for potential causes.
"Results of testing can take multiple days. Additionally, programming and visitation can be limited as a precaution to prevent further spread."
California Correctional Health Care Services did not respond to follow-up questions Wednesday.
The Telix Pharmaceuticals Ltd (ASX: TLX) share price is having a very strong session on Thursday.
In morning trade, the radiopharmaceuticals company’s shares are up 15% to a new record high of $20.16.
Why is the Telix Pharmaceuticals share price rocketing?
The catalyst for this strong gain has been the release of a very positive announcement this morning relating to its United States business.
According to the release, the company stands to benefit from proposed changes announced by the Centers for Medicare & Medicaid Services (CMS).
These proposed changes are for the Hospital Outpatient Prospective Payment System (OPPS) rule to improve payments for diagnostic radiopharmaceuticals for Medicare patients in the United States, facilitating continued patient access after transitional pass through payment status expires.
Management notes that under the proposed changes, diagnostic radiopharmaceuticals, including its Illuccix product, will continue to be paid separately by the CMS for traditional Medicare Fee for Service patients in the hospital outpatient setting following the expiry of transitional pass-through payment status.
Another positive is that this would also apply to new diagnostic products being developed by Telix, if and when they are approved.
Why is this important?
Currently in the United States, the costs associated with diagnostic radiopharmaceuticals are packaged together into the payment for the nuclear medicine tests (scans).
The CMS is proposing refinements to this policy to improve the accuracy of overall payment amounts by paying separately for any diagnostic radiopharmaceutical with a per day cost greater than US$630.
The CEO of Telix Americas, Kevin Richardson, was pleased with the proposed changes and appears to believe it could be a boost to Illuccix demand. Richardson commented:
Telix welcomes the proposed rule, which will facilitate more equitable and reliable access to advanced imaging for all patients and support physicians to prescribe the most clinically appropriate solution. We commend the vision of CMS and the coalition, along with patient groups, for raising awareness about the necessity to reform the payment system to enhance patient outcomes and access.
Telix is committed to continued innovation in the field of radiopharmaceutical diagnostics to provide new solutions to further patient access, especially for underserved patient populations and in areas of high unmet clinical need.
Following today’s gain, the Telix Pharmaceuticals share price is now up a whopping 82% since this time last year. To put that into context, a $10,000 investment a year ago would have grown to become just over $18,000 today.
Should you invest $1,000 in Telix Pharmaceuticals right now?
Before you buy Telix Pharmaceuticals shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telix Pharmaceuticals wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Artificial intelligence might be creating a costly problem. If it comes unstuck, a few ASX shares could win from the AI fallout.
The recent stratospheric rise of artificial intelligence has attracted investors far and wide. It’s not hard to understand why… the share price of AI-enabler Nvidia Corp (NASDAQ: NVDA) has rocketed 211% in one year.
In times like these, it’s worth taking a step back to reflect. While pondering, I stumbled upon a perceptive blog by Sequoia Capital partner David Chan. In it, Chan unpacks the pin that may pop the AI bubble.
Money for nothing?
Data centre revenue is Nvidia’s largest source of revenue, stemming from the AI boom.
During the trailing 12 months, the chip designer racked up US$79.8 billion in revenue. It’s safe to say these data centres — such as Microsoft Azure, Amazon Web Services, and Google Cloud Platform — are spending a huge chunk of money on AI-capable hardware.
Nvidia’s annualised revenue from its data centre segment is expected to reach US$150 billion by the fourth quarter. According to Chan’s analysis, graphics processing units (GPUs) — Nvidia’s hardware — account for about half of a data centre’s operating cost.
The Sequoia Capital partner then explains that the end users, i.e., companies using AI compute, need to make a return on their spend. Assuming a 50% gross margin, end users need to generate $600 billion in revenue from AI products for the $150 billion outlay to be worthwhile, as shown in the summary below.
Source: AI’s $600B Question, Sequoia Capital
Where’s the problem?
According to Chan, OpenAI generates most of the AI revenue, totalling $3.4 billion. Other startups also make some money, but none surpass $100 million per year.
Chan assumes the tech giants will be able to make about $10 billion annually from AI features. Even then, a $500 billion difference exists between required AI revenue and expected — what Chan calls a ‘$500 billion hole’.
Excess AI supply could boost these ASX shares
If a massive overestimation of AI demand eventuates, where might the opportunities be?
Imagine processing power in a data centre as akin to a hotel room. When you have more rooms than guests, the logical move is to drop prices until all rooms are filled — it’s better to make $50 per night than $0.
I suspect data centres will do the same if they have more hardware than needed.
Some ASX shares might benefit from underwhelming AI demand. I believe companies with significant cloud costs would reap the rewards of a data centre glut.
Think companies like REA Group Ltd (ASX: REA), WiseTech Global Ltd (ASX: WTC), and Xero Ltd (ASX: XRO). These companies depend on data centres to host data and run functions on behalf of their customers.
According to accounting firm EY, cloud hosting costs ‘account for 6% to 12% of [software as a service] revenue and constitute a sizable portion of their cost of goods sold (COGS). Therefore, it stands to reason that companies reliant on the cloud could see margins widen if data centre costs plunge.
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rea Group wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia, REA Group, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Nvidia and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The WA1 Resources Ltd (ASX: WA1) share price has returned from its trading halt with a thud.
In morning trade, the niobium explorer’s shares are down 12% to $16.65.
Why is the WA1 share price crashing?
Investors have been hitting the sell button today after the company’s management decided to take advantage of its meteoric share price to raise funds.
According to the release, WA1 Resources has received firm commitments for a placement of 3.5 million new fully paid ordinary shares to raise $60 million before costs.
The company will be raising these funds at a placement price of $17.00 per new share, which represents a 9.8% discount to where the WA1 share price last trade. It also represents an 11.8% discount to the 10-day volume weighted average price.
Why is the company raising funds?
The company advised that the funds raised from the placement will primarily support activities at the impressive Luni deposit and the broader West Arunta Project.
This includes ongoing mineral resource and extensional drilling, process testwork and flowsheet development, permitting, and project development activities. It also notes that the placement will support other exploration, administration/corporate costs, and general working capital.
WA1’s managing director, Paul Savich, was pleased with the success of the placement. He commented:
This Placement will support the Company’s efforts to increase momentum and continue to unlock the full value of the Luni discovery. The strong demand from new and existing institutions around the world reflects the quality of the recent Mineral Resource estimate, its tier-1 location and the significant potential for future growth.
Savich also revealed that the company is undertaking further drilling at Luni, which could increase the already massive mineral resource. He adds:
Two drill rigs are currently operating at Luni to increase confidence in, and extend, the Mineral Resource, along with providing further samples for metallurgical testwork. This placement will also allow the Company to accelerate its project development workstreams and expand exploration activities across the greater tenement package.
Despite today’s pullback, the WA1 share price remains up 220% since this time last year. This has been driven by excitement over its Luni deposit.
In its quarterly activities update, the company points out that its “MRE highlighted Luni as the world’s most significant niobium discovery in more than 70 years and one of Australia’s major critical minerals deposits.”
The initial inferred mineral resource contains 200 Mt at 1.0% Nb2O5 with a high grade subset of 53 Mt at 2.1% Nb2O5 (at a 0.25% Nb2O5 lower cut-off). It notes that this confirms the tier-1 scale and grade of Luni.
Should you invest $1,000 in Wa1 Resources right now?
Before you buy Wa1 Resources shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wa1 Resources wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
