Category: Stock Market

The Macquarie Telecom Group Ltd (ASX: MAQ) share price was a strong performer on Thursday.

The cloud computing, cybersecurity, and data centre company’s shares rose 2.5% to end the session at $61.52.

Why is this ASX All Ords tech share charge higher?

Investors were buying this All Ords tech share after analysts at Goldman Sachs added the company to its coveted conviction list.

According to the note, the broker has retained its buy rating with an improved price target of $75.30.

Even after today’s gain, this suggests the ASX All Ords tech share could rise over 22% from current levels over the next 12 months.

What did the broker say?

Goldman highlights that a recent update from NextDC Ltd (ASX: NXT) appears to demonstrate that trading conditions are strong in the data centre market. This bodes well for Macquarie Telecom and its Macquarie Park operation. It commented:

Recent NXT S3 contract win (36MW in Artarmon, Sydney) is a clear indication of ongoing strength in hyperscale demand and the privileged position of MAQ’s capacity in Macquarie Park (~9km from S3), where MAQ plans to build its IC3 Super West data centre (32MW) on its existing campus once it receives DA approval (next 6 months). We believe MAQ is well-placed to secure hyperscale pre-commitments once construction is underway, helping to de-risk the returns outlook and support balance sheet funding.

The broker also believes that the ASX All Ords tech share is well-placed to benefit from favourable trading conditions in managed services and cybersecurity. It adds:

Industry trends and channel checks suggest that high-value managed services (particularly for the Azure stack), public sector spending and cybersecurity are driving strong growth for ANZ IT services – underpinning our positive view on the growth outlook for MAQ’s Cloud Services & Government business (+22% FY22-25E CAGR). FY23 guidance appears conservative in this context as MAQ assumes flat sequential 2H23 EBITDA (vs typical 47/53 1H/2H skew), and we see upside risk to the full-year result in August.

Overall, Goldman believes the market is “yet to appreciate the underlying quality of MAQ’s services business” and that this tech share deserves to trade on higher multiples.

The post Goldman Sachs just added this ASX All Ords tech share to its conviction list appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares this week
• Top brokers name 3 ASX shares to buy next week
• Brokers are raving about this ASX 200 tech share benefiting from ChatGPT’s rise
• Brokers name 3 ASX shares to buy now
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Nextdc. 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.

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ASX 200 mining shares, including the major iron ore miners, closed lower on the market on Thursday.

The S&P/ASX 200 Materials Index (ASX: XMJ) finished the day 2.03% in the red.

BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Metals Group Ltd (ASX: FMG) were among the shares to slide.

Let’s take a look at what weighed on these ASX 200 mining stocks today.

What happened?

BHP, Rio Tinto, and Fortescue are all major iron ore producers. BHP shares dropped 2.56% today, while Fortescue shares slid 0.88%. Rio Tinto shares also shed 2.32%.

Iron ore futures for a June 2023 contract (China 62% Fe Fines) are down 1.48% to US$113.15 a tonne on the Singapore Exchange at the time of writing. This is the lowest level since 5 January.

News has also emerged out of China that the country will “speed up” iron ore projects to secure domestic supply, according to Reuters, citing reports by mining.com.

China is the world’s largest importer of iron ore, so any increase in domestic production could mean it is less dependent on iron ore from overseas.

The copper price is also down 0.16% to US$4,0652 a pound, Trading Economics data shows.

Commenting on the fall in commodities, in a research note today, ANZ economist Adelaide Timbrell said:

Base metals fell sharply in early trading as the weak economic data hurt market sentiment. This was exacerbated by hawkish comments from the Fed following data showing wage gains in the US are outpacing inflation. This could see central banks continuing to raise interest rates.

However, the sector recovered late in the session as the focus returned to supply side issues.

Meanwhile, Rio Tinto provided a first-quarter update to the market this morning. Pilbara iron ore shipments lifted 16% compared to the first quarter of 2022, marking a new first-quarter record. However, shipments were still down 6% compared to the fourth quarter of 2022.

Share price snapshot

The BHP share price has lost 1% in the last year. Rio Tinto shares have lifted 1.7% in the past 12 months year, while Fortescue shares have returned 3%.

The post ASX 200 mining shares sink as iron ore price nears 2023 low appeared first on The Motley Fool Australia.

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More reading

• Why 29Metals, Allkem, Alliance, and Rio Tinto shares are falling today
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• The latest Rio Tinto dividend is being paid today. Here’s what you need to know

Motley Fool contributor Monica O’Shea 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.

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The S&P/ASX 200 Index (ASX: XJO) traded relatively flat for most of Thursday, finishing the session 0.04% lower at 7,362.2 points.

It came on a dismal performance by the S&P/ASX 200 Materials Index (ASX: XMJ). The mining sector tumbled 2%, weighed down by lithium and iron ore producers.

The S&P/ASX 200 Energy Index (ASX: XEJ) also suffered today, slipping 0.4%.

The S&P/ASX 200 Financials Index (ASX: XFJ), on the other hand, posted a 1.25% gain amid first-half earnings from Bank of Queensland Ltd (ASX: BOQ). The bank posted a 98% fall in statutory profit, driven lower by $260 million of provisions and impairments.

Retailers also posted a strong performance, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) rising 1%.

So, with all that in mind, let’s take a look at which stocks took out the top spots on the index on Thursday.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was Virgin Money UK CDI (ASX: VUK). It gained 5% to close at $2.98 despite no news having been released by the company.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Virgin Money UK CDI (ASX: VUK)	$2.98	5.3%
Telix Pharmaceuticals Ltd (ASX: TLX)	$9.79	4.48%
Lovisa Holdings Ltd (ASX: LOV)	$26.12	3.65%
Collins Foods Ltd (ASX: CKF)	$8.69	3.58%
Idp Education Ltd (ASX: IEL)	$28.19	3.53%
Magellan Financial Group Ltd (ASX: MFG)	$8.04	3.21%
Pinnacle Investment Management Group Ltd (ASX: PNI)	$8.10	2.53%
Perpetual Limited (ASX: PPT)	$24.14	2.51%
Coronado Global Resources Inc (ASX: CRN)	$1.675	2.45%
Link Administration Holdings Ltd (ASX: LNK)	$2.14	2.39%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 Collins Foods, Idp Education, Link Administration, Lovisa, and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Collins Foods, Idp Education, and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I’m a big believer in regularly buying ASX shares, regardless of what is currently going on in the world — through the good and bad times. For me, that means adding to the portfolio at least every month. For April, it is PWR Holdings Ltd (ASX: PWH) that has caught my attention.

At the time of writing, the maker of cooling solutions for high-performance vehicles is currently trading at $10.09 per share. This corresponds with an 8.1% fall in the company’s share price since the beginning of the year.

PWR Holdings is a high-quality ASX share with a price-to-earnings (P/E) ratio of 49 times. While this might deter some investors, I believe there are compelling reasons to consider adding it at its current valuation.

In this article, I’ll be sharing five compelling reasons why I personally find PWR shares an attractive investment opportunity in April.

5 reasons to buy PWR shares this month

1. PWR Holdings’ revenue has grown at an 18.9% compound rate

At face value, the high-performance parts manufacturer might look extremely expensive. While it trades at a P/E multiple of nearly 50 times, the global auto components industry average hovers around 20.

However, unlike most of its peers, PWR Holdings is growing at a phenomenal rate. As pictured below, the company’s revenue has grown at a compound annual growth rate (CAGR) of 18.9% over the past five years.

Since 2014, the top line has increased each and every financial year. That level of consistent growth deserves an above-average earnings multiple, in my opinion. If PWR can maintain a 15% per annum growth rate moving forward, its full-year revenue could double to $217 million in five years.

2. Diversified revenue streams — ready to weather a weak economy

A weaker economy is possibly on the cards as interest rates chew up their fair share of consumer spending. Although the short-term pinch will become less significant with time, it sure helps to ride the wild wave by being diversified.

Fortunately, PWR Holdings doesn’t rely upon one source for its revenue. As the diagram below shows, income is spread across several segments including motorsports, automotive OEM, automotive aftermarket, and aerospace and defense.

In my opinion, the aerospace and defense segment could achieve considerable growth even under tough economic conditions. The potential financial padding this avenue offers is another reason why PWR shares are appealing to me at the moment.

3. Competes on quality and performance, not price — hello pricing power!

Inflation is expected to remain above 3% out to mid-2025. If companies don’t have some form of pricing power, this will crimp earnings margins.

One form of pricing power that I believe PWR Holdings has is superior quality and performance. That means the company’s products don’t necessarily need to compete on price, making it easier to pass on higher costs.

This is evident when browsing an automotive store, such as Repco, for radiators (pictured above). PWR’s products are prominently featured in the highest-priced radiators and are noticeably absent from the cheapest options.

4. Tapping into a growth industry

P/E ratios can be a poor means of valuing a company if future earnings accelerate rapidly. This could be the case for PWR shares, in my opinion, as the company latches onto a fast-growing market.

Forecasts shared by Goldman Sachs suggest electric vehicles (EVs) could make up a substantial share of total vehicle sales by 2040. For example, Europe EV sales are expected to grow from 11% in 2022 to 100% by 2040, as shown in the chart below.

Every EV needs some form of battery cooling technology — something that PWR Holdings management has said they’re ‘well placed’ to deliver on.

The increased adoption of EVs is a market for PWR’s expertise that I think is being undervalued.

5. PWR share price might not be factoring in greater growth for longer

This point echoes the underlying reasoning of the last, but the market might be underestimating PWR’s future earnings ability.

As I previously mentioned, if PWR were to double its revenue in five years — while maintaining its profit margins — the P/E ratio would halve to 25. But what if the company’s earnings were to double again over the next five years? Suddenly the earnings multiple is closer to 12.

Given the growing market potential across multiple decades, I believe the current 50 times multiple could end up looking like an opportunity in hindsight.

This is the main reason why I’m seriously considering buying PWR shares this month.

Is it enough to buy PWR shares over other ASX shares?

The hardest part of being an investor is deciding which mouths to feed. There are usually several options vying for investment, but limited capital makes it important to fuel the best at the time.

This month, the top companies on my list for deploying my spare funds include Apple Inc (NASDAQ: AAPL) and Macquarie Group Ltd (ASX: MQG) — both of which are existing holdings. However, the exceptional growth potential offered by PWR shares positions it as my top April buy on the ASX.

The post 5 reasons why I think PWR shares are an unmissable ASX buy in April appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Mitchell Lawler has positions in Apple and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Goldman Sachs Group, and PWR Holdings. The Motley Fool Australia has positions in and has recommended Macquarie Group and PWR Holdings. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Sayona Mining Ltd (ASX: SYA) shares have a rather awkward feather in their cap this week. No, it’s not today’s share price performance, which has seen Sayona gain a healthy 1.03% to 19.7 cents a share at market close.

Rather, it’s Sayona’s presence on the list of the most short-sold ASX shares on the market. Every week, my Fool colleague James takes stock of the ASX’s most shorted shares. This week, Sayona was number four on the list, with a significant 9.3% of its shares short-sold.

Only Zip Co Ltd (ASX: ZIP), Megaport Ltd (ASX: MP1), and Flight Centre Travel Group Ltd (ASX: FLT) have more of their shares shorted.

What is short selling?

When a company’s shares are short-sold, it means that investors are betting against the company’s future performance. A short seller borrows shares from another investor and immediately sells them, with the promise of returning them at a later date.

If, after the agreed length of time has passed, the company’s shares have fallen in value, then the shorter buys them back at the lower price, returns them to their owner, and pockets the difference. As such, they prosper as the company’s shares fall in price.

This practice is a little controversial and is usually only conducted by institutional investors. But it legally occurs nonetheless and gives us valuable insight into what big players in the market are thinking.

So the presence of Sayona shares on this week’s most shorted shares list tells us that a significant amount of capital is being wagered on the belief the Sayona share price is in for a rough time going forward.

So those who are ‘long’ Sayona (have shares that aren’t short-sold) might be wondering if, and indeed hoping, these short sellers are wrong.

Let’s have a quick look to see if the short case stacks up.

A short seller usually believes a share is overvalued, which is why they bet that its share price will fall.

So let’s look at Sayona’s most recent full-year results to assess its current valuation.

Are Sayona shares overvalued?

For the 2022 financial year, Sayona reported a total of $108.87 million in revenue and other income.

On the bottom line, that translated into a net profit before tax of $83.69 million. When it comes to an earnings per share (EPS) basis, that works out to be 1.23 cents per share. At the current Sayona share price of 19.7 cents, this gives the company a price-to-earnings (P/E) ratio of 16.01

This valuation might be why short sellers are so keen to have a crack at Sayona.

Most ASX resources shares trade on a P/E ratio far lower than that. For instance, BHP Group Ltd (ASX: BHP), one of the most tightly run resources companies in the world, currently has a P/E ratio of 8.7.

Fortescue Metals Group Limited (ASX: FMG) is trading on 8.04. Rio Tinto Limited (ASX: RIO) is looking a little more expensive but is still on 10.67 right now.

So investors are paying almost twice as much for $1 of earnings with Sayona as they are with BHP. Yet BHP is vastly more mature and established.

Sayona shareholders might point to the company’s exposure to forward-facing lithium, rather than ‘boring’ industrial metals like iron ore. But for Sayona to grow to a point that might justify its current P/E ratio, lithium prices will arguably have to rise and stay high for a very long period of time.

It’s likely that the short-sellers believe this won’t happen and are thus happy to place bets against its future success.

They might be right. They might be wrong. There’s no way of telling just yet though.

The post Are short sellers wrong about Sayona Mining shares? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why Ramelius, Sayona Mining, St Barbara, and Woodside shares are dropping today
• Here are the top 10 ASX 200 shares today
• Why EML, Lake Resources, Lindsay, and Sayona Mining shares are racing higher
• Here are the 3 most heavily traded ASX 200 shares on Monday

Motley Fool contributor Sebastian Bowen 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 Megaport and Zip Co. The Motley Fool Australia has recommended Flight Centre Travel Group and Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The RBA palaver?

It’s true that Governor Phillip Lowe erred, badly, in letting Australians believe that rates wouldn’t increase until 2024.

And he and the RBA Board erred in not increasing rates more quickly, and more significantly, once it was likely that inflation was going to be too high.

And yet…

And yet, I think he should likely be reappointed. And that the review of the RBA released today is probably unnecessary (not least because it’s the view of three arbitrary – if eminently qualified – people that may, or may not, be the view of three other, similarly qualified people).

And that’s worth a discussion in itself.

But I want to use that, instead, as a jumping off point to explain how investors often underperform.

See, what’s happening is that plenty of people (including many who are reading this) will have one of two reactions to Phillip Lowe’s recent performance:

1. He screwed up. He should go; or

2. He screwed up, but he’s still the best person for the job.

And your choice matters.

No, not for Phillip Lowe (though hello Treasurer Chalmers if you’re reading this – your choice does matter for Dr Lowe’s continued employment!).

But it matters for your investing.

And I want to demonstrate with some numbers.

According to some relatively recent research, the average US managed fund underperforms the market.

That’s no surprise. The fees alone would all-but guarantee that.

But here’s the kicker. According to the same research, the average US managed fund investor performs worse than the average managed fund!

And if that sounds hard to believe, it’s explained by the fact that many investors sell out of last year’s losers, and invest in last year’s winners, instead.

But… reality being what it is, most funds don’t win two years in a row. The chopping and changing, chasing last year’s performance, costs investors a small fortune.

In other words, making a mistake, or underperforming, usually isn’t fatal.

And, things tend to revert back to average, over time.

Phil Lowe got it wrong, last time.

So, it turns out, did the entire Western world’s central bankers.

Maybe they’re all completely useless.

Or, just maybe, because the future is unknowable, and these circumstances were so unusual, mistakes happen.

If you want to assume Lowe and his cohorts will never be right again, be my guest.

But who do you replace him with? Someone who didn’t learn the lessons of the past couple of years?

Is that really likely to give you a better outcome next time around?

Or is it like managed fund investors who dump last year’s underperformers and buy last year’s winners, hoping they’ve found a path to endless prosperity?

The GOATs of behavioural psychology, Danny Kahnemann and Amos Tversky, knew this.

They gave the example of military aviation trainers. See, there was a prevailing view among trainers of military pilots that if those pilots were given praise after a great landing, performance worsened the next time. If they criticised a poor outcome, performance improved next time.

Which proved…

Nothing.

Other than that performance tends to revert to average. A bad landing was likely an aberration. As was a particularly great landing.

In other words, it had nothing to do with the feedback at all!

Is every central banker in the world suddenly useless? Or are these strange circumstances likely just, well, strange?

How you answer these questions matters for how you approach investing.

If you’re someone who takes feedback from short-term share price movements, you’re going to struggle to be a successful investor.

If you’re someone who takes short term business performance as necessarily indicative of long term performance, you’re going to struggle to be a successful investor.

What matters is long term performance.

Being able to look through short term gyrations – good and bad – and seeing the long term story.

Not chasing last year’s winners. Or selling last year’s losers.

Which isn’t to say last year’s losers will necessarily start winning.

Or that last year’s winners are doomed.

But it’s a reminder that there is, to use another topical statistical concept, far more ‘noise’ than ‘signal’ in most data.

Which, frankly, channels Aesop’s tortoise and hare.

Can it really be possible that, after all of the growing ‘sophistication’ of finance over the past hundred years, it’s really that simple?

It’s more than possible.

It’s very bloody likely, in my view.

Politicians like to find someone else to blame. It’s good for their electoral chances.

We like to find someone to blame, too. It suits our deep seated need for vengeance: It just feels good.

But successful investors, I would argue, focus not on the past, but the future.

And not just the next 6 or 12 months.

But the next 6 or 12 years.

In the RBA context that means not asking ‘Who didn’t make a mistake last year’, but ‘Who is best placed to make the calls next year’.

The investors’ version of that question is trying to identify the companies that have the best chance of long term success, no matter what happened last year.

Feel free to choose the fresh-faced young buck with confidence and bravado, who’s going to learn the hard way.

I’ll take the grizzled general with the battle scars and a determination not to repeat past mistakes, every time.

Fool on!

The post What investors can learn from the RBA’s mistakes appeared first on The Motley Fool Australia.

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Motley Fool contributor Scott Phillips 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.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price is up 0.9% in afternoon trade on Thursday.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $18.79. Shares are currently trading for $18.95.

After a strong start to the new year, which saw the Flight Centre share price gain 37% between 3 January and 8 March, the stock has been trading in a fairly tight range. 

While that doesn’t tell us too much by itself, when a company’s stock consolidates it offers a good opportunity to dig in for some research on whether it’s worth buying.

If we take a step back, you’ll see that despite the strong run in 2023, the Flight Centre share price is still down 13% over the past 12 months.

And while shares are up 113% since the pandemic market meltdown lows of 19 March 2020, Flight Centre stock remains down 53% from 3 January that year.

Which tells me the rebound could have a lot further to run.

Are ASX 200 investors missing a profitable buying opportunity?

Whether or not the ASX 200 travel company is a good buy today certainly depends on who you ask.

Shares kicked off the week retaining their spot as the most shorted on the ASX, with an 11.8% short interest.

These short sellers clearly believe (or hope!) that the Flight Centre share price is going to drop from today’s levels.

But I wouldn’t bet on it.

Why the Flight Centre share price has room to run higher

The company remains in recovery mode from the massive pandemic hit. While shares could of course trade lower in the short term, I believe longer-term ASX 200 investors will look back and see today as a profitable buying opportunity.

Remember, while international travel numbers are recovering, they’ve yet to reach or exceed, pre-COVID levels.

But with a bit of help from China’s reopening, Flight Centre expects international capacity will hit 85% of pre-COVID levels by the end of June.

As for the most recent financials, Flight Centre reported a $2.4 million underlying post-tax loss on its half-year results for the six months ending 31 December.

Now a loss is a loss. But take note that the company reported a $188 million loss for that six-month period a year earlier.

With revenue coming in at $1 billion over the half year, the ASX 200 travel share reported underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $95 million. One year earlier EBITDA came in at a $184 million loss.

And one more reason I believe the Flight Centre share price remains a buying opportunity is the company’s strong balance sheet.

At 31 December, Flight Centre had a $465 million net cash position. This should help steer the company through any unexpected turbulence in the months ahead.

The post Is the Flight Centre share price handing ASX 200 investors a buying opportunity? appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares this week
• Flight Centre shares are up 30% in 2023. Can it last?
• These are the 10 most shorted ASX shares this week
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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 Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Fans of All Ordinaries Index (ASX: XAO) biotechnology share Mesoblast Ltd (ASX: MSB) may have been on tenterhooks today. The company entered a trading halt shortly after the market opened, citing “a proposed placement of securities to targeted investors”.

But the short, roughly 30-minute window in which Mesoblast shares traded today saw the market bidding them lower. The company’s share price is halted at 99 cents – 1% lower than it closed Wednesday’s session.

For comparison, the ASX All Ords is up 0.04% at the time of writing.

Let’s take a closer look at what’s happening (or not happening) with Mesoblast shares on Thursday.

Mesoblast in trading halt amid placement

The Mesoblast share price isn’t going anywhere this afternoon as the company seemingly undergoes a capital raise.

Of course, that’s likely left investors itching for more information. And they might be kept waiting.

The company has requested that the trading halt continue until the market opens on Monday unless it releases another announcement sooner.

The last time the market was given a chance to delve into the company’s balance sheet was in late February.

Then, it revealed it had US$67.6 million of cash on hand and the option to draw an additional US$40 million from existing financing facilities subject to certain milestones.

It also used US$16.5 million of cash in operating activities in the second quarter of financial year 2023, posting a US$24.5 million post-tax loss for the period.

The last time Mesoblast underwent a placement was in August 2022. Then, it raised US$45 million by offering new shares for 75 cents apiece to major shareholders.

Mesoblast share price snapshot

The Mesoblast share price has had a wild ride in recent months.

The stock reached a high of $1.33 in February, a 118% recovery from its June 2022 low of 61 cents.

It’s currently 14% higher than it was at the start of 2023. Though, it’s fallen 13% since this time last year.

Meanwhile, the All Ords has gained 6% year to date and is down 4% over the last 12 months.

The post Here’s why Mesoblast shares are in a trading halt today appeared first on The Motley Fool Australia.

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More reading

• Why 29Metals, Allkem, Alliance, and Rio Tinto shares are falling today
• Why Bank of Queensland, Link, Silk Laser, and Zip shares are pushing higher
• How might the latest RBA changes impact ASX 200 investors?
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Motley Fool contributor Brooke Cooper 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.

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The S&P/ASX 200 Index (ASX: XJO) has founds its legs this afternoon after a shaky morning. At the time of writing, the benchmark index is up 0.15% to 7,375.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

29Metals Ltd (ASX: 29M)

The 29Metals share price is down over 12% to $1.18. This follows another disappointing update on the miner’s Capricorn Copper operation which was recently hit with extreme weather. According to the release, management expects the operation to be back up and running completely by the middle of the first half of 2024. That’s almost a year from now.

Allkem Ltd (ASX: AKE)

The Allkem share price is down 4.5% to $11.72. Investors have been selling this lithium miner’s shares following the release of its quarterly update. Although the company delivered a solid update and pricing ahead of expectations, this wasn’t enough to satisfy some investors. Tesla’s softer than expected quarterly result could have taken some of the shine of Allkem’s update.

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance share price is down 8% to $3.23. This follows news that the ACCC has blocked Qantas Airways Limited (ASX: QAN) from completing its acquisition of the airline services company. Alliance revealed that it will closely consider the ACCC’s decision and its options before deciding on its next steps.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down 2.5% to $120.20. This was despite the release of the mining giant’s first-quarter update this morning. Rio Tinto’s Pilbara iron ore business produced 79.3 million tonnes and shipped 82.5 million tonnes during the three months, which were jumps of 11% and 16%, respectively.

The post Why 29Metals, Allkem, Alliance, and Rio Tinto shares are falling today appeared first on The Motley Fool Australia.

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More reading

• Allkem share price slides despite strong quarterly production from the ASX 200 lithium stock
• Qantas share price rises despite BRUTAL blow from watchdog
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• 2 ASX 200 dividend shares to buy now: brokers
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Motley Fool contributor James Mickleboro has positions in Allkem. 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 Alliance Aviation Services. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.1% to 7,374.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are pushing higher:

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is up almost 2% to $6.40. This follows the release of the regional bank’s half-year results this morning. The bank reported a 4% decline in cash earnings to $256 million and a 9% reduction in its interim dividend to 20 cents per share. Management also eased investor nerves by saying: “BOQ is in a strong financial position as we enter this more challenging economic cycle.”

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is up 2.5% to $2.14. This follows news that the administration services company has reached a conditional agreement for the sale of its Fund Solutions business to the Waystone Group for an aggregate consideration value of between £110 million and £140 million. The deal excludes its Luxembourg and Swiss entities, as well as the Woodford related liabilities.

Silk Laser Australia Ltd (ASX: SLA)

The Silk Laser share price is up 24% to $3.00. This has been driven by news that Wesfarmers Ltd (ASX: WES) has tabled a $3.15 cash per share non-binding takeover offer for Australia’s largest specialist clinic networks. The deal values Silk at $169 million. Wesfarmers expects the deal to complement its existing Clear Skincare Clinics business.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up over 3% to 53.7 cents. This follows the release of the buy now pay later provider’s quarterly update. Zip reported a 15% increase in revenue to $182 million on a 9% lift in transaction volume to $2.2 billion. The company also delivered a nice improvement to its margins during the quarter.

The post Why Bank of Queensland, Link, Silk Laser, and Zip shares are pushing higher appeared first on The Motley Fool Australia.

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More reading

• Everything you need to know about the latest Bank of Queensland dividend
• Zip share price climbs on 15% revenue boost
• Bank of Queensland share price lifts despite plunging profits
• Silk Laser share price rockets 25% following Wesfarmers takeover bid
• Wesfarmers share price on watch amid $169m Silk Laser takeover offer

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 positions in and has recommended Link Administration and Zip Co. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Silk Laser Australia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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