Category: Stock Market

The Polynovo Ltd (ASX: PNV) share price is in the red on Wednesday afternoon following an update from the company regarding its NovoSorb SynPath product.

During the opening bell, the medical device company’s shares started the day at $2.11 before quickly sinking to $2.04 apiece.

However, a sharp recovery led the share price to climb into positive territory to $2.14. Since then, the share has retraced to $2.10, down 0.94%.

The broader S&P/ASX 200 Healthcare Index (ASX: XHJ) is also in the red at the time of writing. It’s 1.35% lower.

Let’s check the details of the company’s latest update.

What did Polynovo announce?

In its announcement, Polynovo advised that it has enrolled its first patient in the clinical trial of NovoSorb SynPath.

The randomised controlled trial (RCT) is aimed at evaluating the safety and efficacy of the product for patients suffering from chronic diabetic foot ulcers (DFUs).

The trial is being conducted across eight sites in the United States. These include the centre for Clinical Research Inc. in San Francisco, California and Barry University in Miami, Florida.

Polynovo is hoping for SynPath to be used as a standard of care for people affected by DFUs.

Management is planning to recruit up to 138 people for the study. This is expected to be completed by April 2023.

The goal is to measure the percentage of ulcers that are fully healed at the end of a 12-week period.

The addressable market opportunity is massive for Polynovo as DFUs affect more than 300,000 people in the United States annually. This accounts for more than US$9 billion in annual expenditure.

Globally, the DFUs’ addressable market was valued at $US7.03 billion in 2019 and is projected to reach $US11.05 billion by 2027.

What did management say?

Commenting on the update, Polynovo CEO Swami Raote said:

We are thrilled to have initiated our trial utilising NovoSorb SynPath for the treatment of chronic diabetic foot ulcers. This critical milestone has us on the road to help more patients with non-healing chronic wounds and to further investigate the benefits of our novel technology for these wound types.

SynPath is leveraging our successes in the acute care setting with NovoSorb BTM and allows us to expand our offering to the outpatient setting for clinicians dedicated to changing the lives of their patients.

Polynovo chair David Williams added:

Many surgeons are already successfully using BTM for the treatment of DFUs, but the time has come for a specific product to treat DFUs and venous leg ulcers. The trial will provide valuable data for surgeons and importantly, also put us on the path to reimbursement.

Polynovo share price summary

After hitting a multi-year low of 83.5 cents on 5 May, the Polynovo share price has rocketed by more than 150%.

The company’s non-executive director David Williams notably took advantage of the share price weakness, loading up on his holdings.

In the past three months, Williams has bought more than $5.5 million of Polynovo shares.

It appears the spending spree has paid off with the company’s shares hitting a year-to-date high of $2.14 today.

The post What’s with the Polynovo share price on Wednesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 POLYNOVO FPO. 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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2022 thus far has given ASX investors many challenges. For starters, the S&P/ASX 200 Index (ASX: XJO) has had a pretty tough year until now. We may have seen the ASX 200 rally a healthy 9.2% since 20 June.

But the index is still down by a hefty 7.4% year to date. It’s also gone backwards by a similar amount over the past 12 months.

It’s not hard to see that most investor concerns have revolved around rising inflation, and a corresponding ratcheting-up of global interest rates. Not to mention the fears of a looming recession as a result.

So with all of this going on, one might assume that ASX investors’ confidence in the markets has taken a hit. But that is not entirely the case if new research from Syfe is to be believed.

Syfe, a digital investment platform, has just released its Syfe Investor Pulse 2022 research.

According to the research, 58% of investor respondents “remain confident they will still achieve their [investing] goals”, although 40% said this might not occur within the initially-planned timeframe.

Further, 66% of those surveyed stated that they are adopting a “longer-term, passive approach”. In contrast, just 7% of those surveyed are considering selling their investments.

Interestingly, 16% of respondents stated they are “looking to add more defensive assets such as bonds”. In contrast, 12% said they plan to “invest in more aggressive, high-risk assets“.

ASX investors remain confident in crypto, ETFs…

This could include cryptocurrencies like Bitcoin (CRYPTO: BTC). Though 41% of respondents are already invested in cryptocurrencies like Bitcoin. In fact, cryptos are now “on par with property as a future investment vehicle,” according to the research.

It also finds that demand for crypto, international shares, and exchange-traded funds (ETFs) is “outpacing more traditional investments”.

But a long-term investing mindset is also on the rise. Syfe found that 74% of respondents are investing for a time horizon of up to 10 years. And 51% of respondents only entered the markets in the past five years.

Here’s some of what general manager for Syfe Australia, Tim Wallace, had to say on these findings:

While the prevailing wisdom is that the market is saturated and that economic indicators are dampening investor sentiment, the research results reinforce our belief that Australian investors are resilient and firmly focused on financial security.

They are seeking to grow their knowledge and tap into diversified investment offerings like international shares and crypto in order to build for the longer-term.

An interesting insight into ASX investors right now. Hopefully, this confidence pays off, but we’ll have to see what the rest of 2022 brings us.

The post ASX investors are still feeling confident. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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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Those invested in Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares might remember recent comments by Australian federal treasurer Jim Chalmers who slammed banks for not passing interest rate rises onto savings accounts.

Well, ANZ CEO Shayne Elliott hit back at such claims this week, outlining the bank’s moves to raise savings rates.

Let’s take a closer look at what’s going on with the S&P/ASX 200 Index (ASX: XJO) bank.

At the time of writing, the ANZ share price is $23.42, up 3.17% so far today.

ANZ boss responds to treasurer’s criticism

ANZ shares might be front of mind this week after the bank’s CEO responded to criticism from the federal treasurer.

Speaking before the Reserve Bank of Australia (RBA) upped the official interest rate to 1.85% last week, Chalmers said decisions made by some banks to increase interest rates on loans without increasing those on savings accounts were “really disappointing”. He told Sunrise:

I feel like people who are relying on their savings, they’ve been the principal victims of interest rates at historic lows for some time now.

There needs to be a silver lining in these interests going up and that’s for savers, people who need and deserve better interest rates.

But Elliott clapped back at such suggestions, saying the comments were “a bit unfair”.

The CEO told 3AW Mornings yesterday the bank “put[s] [its] best foot forward on a savings product”, continuing:

We’ve got a savings account out there, at-call; 2.5% … You’ll find that that’s the highest rate of any major bank out there and I think that’s exactly where it should be … given where the cash rate is.

The bank increased rates on ANZ Plus Save accounts with balances of less than $250,000 by 0.5% to 2.5% on Monday following the RBA’s latest hike.

It also announced a new 11-month Advance Notice term deposit rate of 3% and noted it was reviewing other savings rates.

ANZ share price snapshot

The ANZ share price is the worst performing of the ‘big four’ bank stocks of 2022 so far.

It’s slipped 14% year to date. Meanwhile, the ASX 200 has slumped 5.7% in that time.

The bank’s shares have also dumped 18% over the last 12 months while the index has fallen 7%.

The post ‘It’s a bit unfair’: Here’s why ANZ shares are making news this week 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 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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Tesla Inc (NASDAQ: TSLA) shareholders woke up (well, in Australia) to some interesting news this morning. Tesla’s totemic CEO Elon Musk has been selling shares.

The Tesla stock price had a rough night of trading last night (our time). The electric vehicle and battery manufacturer ended up dropping by a hefty 2.44% and closed at US$850 a share. It was only last week that the company hit a three-month high of $925 or so.

That means Tesla shares have now fallen 8.2% since Thursday last week. Saying that though, the company is still up almost 21% over the past month.

But many investors might be a little perturbed to find out that Musk has been selling shares in the company he helms. Regulatory filings with the US Securities and Exchange Commission (SEC) show that Musk offloaded dozens of tranches of Tesla shares between 5 August and 9 August.

All up, Musk ended up selling around US$7 billion worth of the company’s shares. These sales were executed at share prices ranging from approximately US$896 to US$857 a share.

This is the first time Musk has sold shares in Tesla since his ill-fated attempt to purchase the social media company Twitter Inc (NYSE: TWTR). Musk initially sold shares to help fund the takeover, but this has sensationally been abandoned since. Albeit not without some legal action.

When a CEO or any management member sells out of their company’s shares, it can often cause some consternation amongst investors. After all, a CEO (especially Elon Musk) is supposed to be ‘cheerleader in chief’ for their company. Thus, it’s hard to spin a sale of shares as a vote of confidence in said company’s future.

Why is a CEO like Elon Musk selling Tesla shares?

But the reality is that Elon Musk, like many billionaires, has the vast majority of his wealth tied up in shares. Many of his other companies, such as Space-X, are private, which means that it is far harder to sell those shares.

So if Musk wanted (or needed) to free up some cash – maybe he wants to buy a new house, or island –  he might have little choice but to sell some of the vast stake he owns in the publically-traded Tesla.

But even though Musk has offloaded around US$7 billion in Tesla shares over the past week, he still owns just over 155 million shares. That means his remaining Tesla stake is still worth roughly US$131.78 billion. Not quite a drop in the ocean. But no one can argue that Musk no longer has skin in the game.

At the last Tesla share price, this US tech titan has a market capitalisation of US$887.82 billion. Tesla stock is still up more than 1,700% over the past three years.

The post Elon Musk just sold US$7 billion worth of Tesla shares. What’s going on? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla and Twitter. 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 St Barbara Limited (ASX: SBM) share price is heavily into the red in early afternoon trade on Wednesday.

This follows the ASX gold miner issuing its FY23 guidance and postponing its full-year results presentation by a week.

The St Barbara share price is currently the worst performer among the S&P/ASX 200 Index (ASX: XJO) today.

What did St Barbara announce?

St Barbara has issued its FY23 guidance after receiving final approval conditions for a tailings lift at its Atlantic Operations. This provided “certainty of business continuity” for the financial year.

The company is guiding consolidated gold production of between 280,000 and 315,000 ounces in FY23. This range represents an increase on St Barbara’s FY22 production of 280,746 ounces (guidance achieved).

However, costs are going to be higher in FY23, the company says.

It forecasts an all-in sustaining cost (AISC) of between $2,050 and $2,150 per ounce in FY23. This is an increase on its FY22 AISC of $1,848 per ounce as reported in its Q4 FY22 results on 27 July.

Why are costs increasing?

St Barbara explained that increased costs at Leonora were related to “rising energy, labour and consumables costs, coupled with a 23% increase in material mined”.

According to the statement:

In the second half [of] the year the [Touquoy] plant will process stockpiled material which results in an elevated AISC forecast as the cost of building the stockpiles was incurred in prior years and accounted for on the balance sheet.

From a cashflow perspective, Atlantic is forecast to be positive, as the cash cost of moving stockpiles to the processing plant is significantly less than the current cost of open pit mining.

Simberi returns to full production in FY23 which has resulted in higher production and lower AISC.

What’s next for St Barbara?

The $6 million tailings lift will enable construction to extend the life of the Touquoy mine until June 2023.

Touquoy will cease open pit mining at the end of December 2023.

The company says it has sufficient stockpiles at Touquoy to ensure continued gold production from the Atlantic Operations until December 2024.

The company said it “will continue to deploy the ‘Province Plan Thinking’ used at Leonora to the Atlantic Operations”. It said this “will focus the Company on value add growth in two provinces”.

The longer-term Atlantic Province Plan will include Beaver Dam and Fifteen Mile Stream. St Barbara expects final permits for Beaver Dam prior to December 2024.

St Barbara is expecting some regulatory determinations in relation to the Beaver Dam and Fifteen Mile Stream this month. The gold miner says they will have “an implication on the non-cash impairment charge in the FY22 Financial Results due to the impact on project timelines”.

St Barbara has therefore decided to postpone its full-year results presentation from 25 August to 31 August.

This will “ensure that the best opportunity is provided for all relevant information to be available and considered, assuming that this assessment is made known before 31 August”.

The post Why is ASX 200 gold share St Barbara sliding 10% today? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen 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 Centuria Capital Group (ASX: CNI) share price is lifting nearly 3% higher in afternoon trade following the release of its FY22 results.

At the time of writing, shares in the real estate player are swapping hands at $1.91 apiece, up from the previous close of $1.86.

Centuria share price buoys from FY22 profitability

Key takeouts from the year include:

• Total operating revenue of $292.6 million, up 38% from FY21
• FY22 operating earnings of 14.5 cents per share (cps), representing a 20.8% gain on the prior corresponding period (pcp)
• FY22 distribution of 11.0cps, signifying a 10% gain on the pcp
• Management guides for operating earnings of 14.5cps and a distribution of 14.5cps in FY23
• Strong assets under management (AUM) growth of 18% year on year to $20.6 billion
• FY22 gross real estate activity comes to $3.1 billion
• Still another $2.1 billion in the company’s development pipeline

What else happened for Centuria?

The company says it experienced strong acquisition activity in FY22, securing $3.1 billion of gross real estate activity.

This was a record of the group, and a “direct consequence of a disciplined acquisition strategy coupled with enhanced platform scale,” it said.

Operating revenue grew by 38% year on year whereas management fees also grew 77% to more than $146 million.

Meanwhile, transaction fees also increased by 162% year on year to around $39 million, whilst Centuria also recognised $33 million of performance fees.

As a result, operating net profit after tax (NPAT) was $114 million, well up from $70 million in FY21, whereas the distribution per security increased to 11cps from 10cps.

Management commentary

Speaking on the results, co-CEO John McBain said:

The Group delivered record operating earnings and distributions throughout the period, following upgraded guidance during the year. Centuria demonstrated how its corporate acquisitions in previous periods have significantly increased the size of the platform with correspondingly high increases in both management fee revenues and transaction fee revenues as is evident in the FY22 result.

What’s next for Centuria?

Adding to previous comments, Mcbain said regarding the company’s outlook:

Centuria remains firmly focussed on the Australasian real estate sector. The Group intends to grow its platform strongly in the alternative healthcare, agriculture and non-bank lending sectors which are receiving strong investor demand.

In addition we will continue to leverage our strong distribution network and our institutional relationships to take advantage of both core and value-add real estate opportunities across our traditional asset classes.

In the past 12 months the Centuria share price is down by more than 38% and 45% this year to date.

The post Centuria Capital share price lifts on 60% profit surge appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Zach Bristow 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 Meeka Metals Ltd (ASX: MEK) share price is surging 30% into the green today following a company announcement.

At the time of writing, the ASX mining share is swapping hands at 6.6 cents apiece, up from the previous close of 5 cents per share. Though Meeka Metals shares reached an intraday high of 7.4 cents just before lunchtime, peaking at a massive 48% above yesterday’s close.

What did Meeka Metals announce?

The company advised that, via shallow aircore drilling, it has intersected gold mineralisation of 610,000 ounces at 1.7g/tonne of gold at its Murchison project.

It also reported assays from an additional 38 aircore holes drilled at the Murchison site during July 2022.

Results from the drilling program show broad zones of gold intersection at a prospect within the site. Two holes in particular intersected quartz veins that could host “high grades and coarse nuggety gold”.

Speaking on the results, Meeka Metals managing director Tim Davidson said the find demonstrates the “exceptional growth opportunity” at Murchison.

“Pleasingly,” he added, “these results also demonstrate the significant high-grade potential as we continue to grow the footprint of this large gold system.”

Drilling is continuing at St Anne’s targeting the largely untested central area immediately along strike and to the south of these exceptional high-grade results. We are also working toward the inclusion of St Anne’s in our next Mineral Resource update, targeted for the December 2022 quarter.

Meeka says it will make additional announcements across the coming months with further assay results from Murchison.

In the last 12 months, the ASX mining share has gained nearly 35%, and 61% this year to date.

The post Guess which ASX mining share is rocketing 30% on a ‘significant new discovery’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 Treasury Wine Estates Ltd (ASX: TWE) share price is currently up around 0.9% after news the company has won a court case in China.

Treasury Wine Estates owns a number of prominent wine labels including Penfolds, Wolf Blass, Squealing Pig, Pepperjack, Blossom Hill, and Yellowglen.

The company sells its wine across the world. The Chinese market is a huge potential opportunity for the business. However, in recent years it has seen its Chinese earnings sink amid trade tariffs on Australian wine.

Yet, it seems there has been a positive development in China.

Chinese win for Treasury Wine

According to reporting by various media, including the Australian Financial Review, Treasury Wine has won a court case in the Supreme People’s Court of China. The court ruled in favour of TWE against Penfolds ‘copycat’ Rush Rich.

The Rush Rich registration of the Chinese character mark for Penfolds Winery was ruled invalid.

According to reporting by the newspaper, the judgement was made on grounds of “bad faith” by Rush Rich and its “illicit conduct in registering a large number of trademarks for a range of global luxury brands” which included Penfolds.

Rush Rich is reportedly a company based in South Australia, but it has entities in China.

According to the AFR, Penfolds managing director Tom King said:

Penfolds has a long and proud heritage in China that’s been protected and nurtured since the first bottle of wine was exported from South Australia to Shanghai in 1893.

He also said that international legal protection gave consumers confidence in the brand. Treasury Wines is taking a “zero tolerance” approach to any infringements.

Why is this so important for the ASX share?

Treasury Wine Estates has noted that China will remain a priority market for the company, through its multi-country of origin portfolio that includes French, US, Chilean, and potentially Chinese-sourced wine.

Indeed, the company’s ambition to get back into China was revealed when it announced in May that it plans to get around the tariffs by producing a wine made in China.

According to reporting by the Australian Broadcasting Corporation, Penfolds will release a Chinese vintage in late 2022. TWE had found “promising characteristics” in grapes sourced from Ningxia, in China’s central-north, and Shangri-la in the south-western Yunnan province.

The ASX share has entered into a strategic cooperation agreement with the China Alcoholic Drinks Association, which is the country’s primary wine industry body. This would allow it to build China’s capabilities in wine.

The ABC quoted CEO Tim Ford:

China is an emerging fine winemaking region and we’re confident we can produce a premium Chinese Penfolds that maintains the distinctive Penfolds house style and uncompromising quality.

As a leading global wine producer, we have a responsibility to help build the wine category and industry in our different markets.

TWE share price snapshot

Over the past month, the Treasury Wine Estates share price has gone up almost 10%.

The post Treasury Wine share price up amid key China trademark win appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Treasury Wine Estates Limited. 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 A2 Milk Company Ltd (ASX: A2M) share price is having a day to forget on Wednesday.

This comes after the embattled company provided an update regarding its FDA application to import products into the United States.

During the first few minutes of market open, shares in the infant formula company dropped to an intraday low of $4.60.

However, since then, its shares have moved in circles to currently trade at $4.71, down 7.83%.

Why did the A2 Milk share price fall?

The notice from the US Food and Drug Administration (FDA) to defer further requests to import infant milk formula (IMF) products into the United States is impacting the A2 Milk share price today.

The shock news appears to have caught investors off guard after A2 Milk shares rose more than 10% in the past week.

This followed the recent media speculation that the company was nearing FDA approval, in which management dismissed the report thereafter.

Nonetheless, A2 Milk would have been hoping to receive a similar outcome to its smaller rival, Bubs Australia Ltd (ASX: BUB). The latter secured a deal with the Biden Administration to import 1.25 million tins of baby formula into the United States.

An article from The Australian reported that Wilsons analyst James Ferrier said the FDA decision “could suggest US authorities are becoming more comfortable with the supply situation.”

Earlier this year, US consumers faced an infant formula shortage following potential contamination at one of its largest manufacturing plants.

Ferrier also went on to add:

This is obviously a disappointing outcome for A2 Milk in regards to short-term earnings potential or an opportunity to build brand awareness in the US.

It also creates uncertainty for those who have secured temporary market access, in relation to prospects for more permanent market access beyond November, which is the end date of the policy.

It is worth noting though that while the update may leave a sour taste in investors’ mouths, the revenue outlook remains the same.

Management is expecting to achieve revenue growth this year after reporting a 2.5% decline to $661 million in H1 FY22.

A2 Milk is scheduled to report its full year results on Tuesday 30 August.

Is the A2 Milk share price a buy despite its latest woes?

Despite the setback, a couple of brokers believe that the A2 Milk share price is currently trading at a bargain price.

Wilsons has a market weight rating and a $5.98 price target on the company’s shares. Based on the current price, this implies an upside of around 27%.

Furthermore, Morgans believes A2 Milk shares are worth $6.39 apiece according to its last valuation.

While more bullish than Wilsons’ price target, this implies an upside of 35% for investors.

The post Why is the A2 Milk share price spilling 8% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has positions in A2 Milk. 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 and BUBS AUST FPO. 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 GrainCorp Limited (ASX: GNC) share price is surging today amid the company announcing it has increased its earnings guidance for this year.

Shares in the integrated grain agribusiness currently trade for $8.17 each, 6.94% higher after hitting an intraday high of $8.43 a share this morning. That was a jump of more than 10% on yesterday’s closing price.

For context, GrainCorp’s home sector, the S&P/AXS 200 Consumer Staples Index (ASX: XSJ), is currently up 0.9% while the benchmark S&P/AXS 200 Index (ASX: XJO) is down 0.07%.

Let’s find out what the company announced to the market today.

What happened?

GrainCorp upgraded its earnings guidance this morning for the period until September 30 this year.

Estimates for earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been raised to $680-$730 million, well up from the earlier guidance of $590-$670 million.

As well, the company’s net profits after tax (NPAT) guidance was also boosted to $365-$400 million, up from $310-$370 million.

GrainCorp Managing Director and CEO Robert Spurway said: 

We are operating our supply chains at close to full capacity and our teams have done an outstanding job in overcoming disruptions relating to weather and COVID to export 7.9 million tonnes of grain year-to-date. This positive outlook is driving an increase in fourth quarter activity and supporting export volumes, forward contracted grain sales and supply chain margins.

GrainCorp said it will invest in additional bunker storage and grain handling equipment in preparation for the upcoming winter harvest. They are also recruiting additional people to help harvest crops.

GrainCorp share price snapshot

The GrainCorp share price has gained more than 52% in the past 12 months although it is still 1.3% lower year to date.

Its shares are outperforming the benchmark index which contracted around 7% in the last year and 5.6% in 2022 so far.

At the current share price, GrainCorp’s market capitalisation is $1.8 billion.

The post Why is the GrainCorp share price up 7% today? appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Matthew Farley 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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