The S&P/ASX 200 Index (ASX: XJO) is having a fairly disappointing day of trading thus far this Thursday. At the time of writing, the ASX 200 is down by 0.66% at just under 7,450 points. Unfortunately for ASX tech shares, this sector is leading the ASX 200 losses today.
While the ASX 200 is ‘only’ down by 0.64%, the S&P/ASX All Technology Index (ASX: XTX) has now lost more than 3% of its value.
We can see this in action with some of the ASX 200’s most prominent tech shares.
Take Block Inc(ASX: SQ2), the new owner of Afterpay. Block shares are currently enduring a nasty 4.3% drop at $170.59 a share.
Altium Limited(ASX: ALU) shares aren’t quite as deep in the dog house but are still down 3.13% right now at $33.60 a share.
Appen Ltd(ASX: APX) is faring slightly better again. This dataset company has lost 1.68% at $6.72 a share as it currently stands. It’s a similar story with Xero Limited(ASX: XRO), which is down by 2.56% at $102.19.
But WiseTech Global Ltd(ASX: WTC) is really copping some ire. WiseTech share price has slumped 6.01% so far today and is now at $49.54 a share.
So why has the ASX 200 tech share sector taken such a battering today?
Why are investors selling off ASX 200 tech shares?
Well, it’s possible these moves have been spurred by the performance of the US tech sector overnight. Last night saw the NASDAQ-100 (INDEXNASDAQ: NDX) lose a hefty 2.17%. The tech-heavy Nasdaq is home to most of the prominent US tech shares, such as Alphabet Inc(NASDAQ: GOOG)(NASDAQ: GOOGL) and Netflix Inc(NASDAQ: NFLX).
This in turn seems to have been sparked by hawkish comments from the US Federal Reserve, which seem to indicate that the Fed may be thinking about ramping up interest rate hikes.
Tech shares are particularly susceptible to higher interest rates seeing many of them trade on elevated valuations and higher growth expectations compared to other sectors on the market.
So that could be why we are seeing so many ASX tech shares getting steamrollered today.
Before you consider Block, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Block wasn’t one of them.
The online investing service he’s 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 are better buys.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Altium, Appen Ltd, Block, Inc., Netflix, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares). The Motley Fool Australia owns and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/yDq5Mjc
The Bitcoin(CRYPTO: BTC) price is down 4.4% over the past 24 hours, having earlier been down more than 6%.
One Bitcoin is currently worth US$43,356 (AU$58,377).
The past two days of retreat have mirrored losses among risk assets like high growth tech shares. This selloff has the S&P/ASX All Technology Index (ASX: XTX) leading the way lower, down 3% in intraday trading.
With the overnight losses, the world’s original crypto is now down 8% since this time last week and down 9% year-to-date.
Yet, while still in the red for the calendar year, the Bitcoin price has marched 23% higher since 24 January, when it traded for US$33,184, according to data from CoinMarketCap.
That’s the recent price action in a nutshell.
But what can crypto investors expect from the Bitcoin price over the coming months?
What’s ahead for the Bitcoin price in 2022?
Ian Lowe is the CEO of crypto wealth platform Dacxi.
Asked what could impact the Bitcoin price over the coming months, Lowe told The Motley Fool:
Institutional adoption will continue to push prices higher. Bullish undertones rippled through the market last Tuesday as the co-founder of Terra (CRYPTO: LUNA), Do Kwon, announced that Terra is commencing the accumulation of US$10 billion worth of Bitcoin as a reserve asset for its stablecoin TerraUSD (CRYPTO: UST).
Lowe added:
The institutionalisation of Bitcoin was further highlighted last week, when Goldman Sachs conducted its first Bitcoin OTC transaction, and reports of Ray Dalio’s giant hedge fund, Bridgewater, backing a crypto fund were released.
A US-listed Bitcoin ETF and looming regulations
Josh Gilbert, crypto analyst at multi-asset investment platform eToro, pointed to the potential launch of a Bitcoin exchange traded fund (ETF) in the United States’ markets as a strong potential tailwind for the Bitcoin price in 2022.
“A US spot bitcoin ETF is still on the radar for next quarter. Although there is no confirmed launch date, interest-only continues to soar,” he told us.
“As some of the world’s largest financial institutions, such as BlackRock, are now beginning to make crypto available for their clients, a spot Bitcoin ETF is expected to make investing in Bitcoin much more straightforward,” he added.
But Gilbert cautioned of potential headwinds over the coming months that could drag on the Bitcoin price.
“I’d be watching for further conversations around regulation, particularly outside of the US,” he said.
According to Gilbert:
US President Joe Biden recently issued his executive order on Ensuring Responsible Development of Digital Assets. Although it’s unlikely we will see the full transition pan out in Q2, any negative discussions in Congress could see the Bitcoin price drop.
Rising utility and stronger hands a tailwind for the Bitcoin price
Daniel Sekers is the managing director of crypto trading platform YourPortfolio.
Commenting on what could send the Bitcoin price higher, Sekers told The Motley Fool, “We are seeing the utility of Bitcoin starting to be used as an underlying security to altcoins. Last week saw the LUNA Foundation Guard buy up US$3 billion of Bitcoin to back their dollar-backed stablecoin.”
Sekers pointed to the havoc caused by Russia’s invasion of Ukraine as also likely to support the Bitcoin price over the coming months:
We have again seen a marked increase in Bitcoin transactions in Europe, we assume fuelled by the conflict in Ukraine. Some of this flow can be attributed to aid flowing into Ukraine, but it would also be reasonable to assume that some of it is being used to avoid Russian sanctions. I would expect the use of cryptocurrencies in the region will continue to fuel price increases in the asset.
He also noted that more Bitcoin looks to be held by what equity investors call ‘strong hands’. Namely investors unlikely to sell at the first sign of weakness.
“In the last 30 days, an analysis of the blockchain via forensic analysis platform Chainalysis shows 0.9% increase in Bitcoin being held by what is considered to be ‘illiquid pools’ which may have an inflationary impact on the Bitcoin price,” he said.
As for what could drag Bitcoin lower over the coming months, Sekers said, “There is nothing like a tweet from Elon Musk to move the Bitcoin price, but we are never really certain of his motives. Tesla holds almost US$2 billion in Bitcoin but that didn’t stop Elon commenting on the energy consumption of the coin putting downward pressure on the price.”
Then there’s the uncertainty surrounding upcoming regulations, which can potentially depress Bitcoin’s performance in the shorter-term. “In the long run this will likely support the Bitcoin price with mass market adoption, but in the short term, the uncertainty of regulation may create a state of flux,” he said.
But the biggest risk to the Bitcoin price, according to Sekers, is the cost to produce and transact the token, which could see a jump in supply.
“With energy prices heavily inflated, crypto-miners that aren’t relying on more stable renewable energy sources will have inflated mining costs,” he said.
Sekers continued:
We see miners react to these fluctuations like any other commodity producer, in that they will decrease their mining operations and increase outflow of reserves. Where it differs with crypto is that miners will release more crypto into the market creating more liquidity, hence increasing supply.
For the miners, especially with an elevated price, this allows them to offset the increased price of production. In the last week, we have seen a marked increase in miners moving Bitcoin to exchanges, as such increasing supply.
Before you consider Bitcoin, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bitcoin wasn’t one of them.
The online investing service he’s 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 are better buys.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/WjSzs63
The S&P/ASX 200 Index(ASX: XJO) has continued its poor form of the week so far this Thursday. At the time of writing, the ASX 200 has lost another 0.64% and is now trading at just under 7,450 points.
So let’s look at something different and take a glance at which shares are sitting atop the ASX 200’s share volume charts, according to investing.com.
The 3 most traded ASX 200 shares by volume this Thursday
ASX 200 telco Telstra is our first cab off the rank today. Telstra has had a notable 12.11 million shares swap hands as it currently stands on the markets. This telecommunications company seems to be defying the mood of the broader market and is currently up 0.9% at $3.97 a share. The company is also continuing to regularly buy back its own shares. This is probably why Telstra is appearing on this list today.
Paladin Energy is next up today. This ASX 200 uranium share has watched as 24.39 million of its shares have found a new home thus far. Yesterday, Paladin announced the completion of a $200 million share purchase plan, which saw the company’s share price drop at the time. However, today, investors seem to have had a change of heart. Paladin shares are now up by 4.2% at 81 cents apiece. This is probably the source of this elevated trading volume.
AVZ Minerals is our third and final share to check out today. This ASX 200 lithium hopeful has had a whopping 31.88 million shares bought and sold on the markets thus far. Again, there has been no major news or announcements out of this company today. So we can probably attribute this volume down to the share price fall AVZ has endured over today’s trading. The AVZ Minerals share price is currently down by 2.62% at $1.12.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/OC84Eks
Two separate markets, one similar industry. That’s an easy way to categorise this pair of interesting tech names that are currently triangulating around the scene.
Each of Archer Materials Ltd(ASX: AXE) and Brainchip Holdings Ltd (ASX: BRN) has been beaten down in the last month whilst the broader tech sector has jumped into the green.
Tech names, in general, have snapped back over the last month, with the S&P/ASX All Technology Index (ASX: XTX) – a proxy for the ASX tech sector – shooting up 5% in that time.
Why don’t we do a quick comparative analysis on both of these shares to get a better understanding of what’s driving each name, and then we’ll see what the market is saying.
Brainchip versus Archer – descriptive analysis
Whilst both companies operate in the same industry, each has fairly different addressable markets. First, let’s look at a brief description of each security.
Brainchip operates as a holding company. Through its subsidiaries, it provides neural computing technology solutions. It also provides artificial neural networks, software and digital hardware solutions in both the US and Australia.
It currently trades at 93.25 cents, well off its 52-week high of $2.34, but above its yearly low of 36 and a half cents. It has a market capitalisation of around $1.6 billion, and printed revenue of $1.6 million in 2021, up from $120,000 a year prior.
Archer Materials on the other hand operates as a technology company. It develops and then commercialises advanced semiconductor devices. The application of its chips ranges from quantum computing to medical diagnostics to mineral exploration. It has a global footprint.
Archer is trading down today at 88.5 cents and that’s a hefty slice off its 52-week high of $3.08 and actually closer to its 52-week low of 66.5 cents, set back in May 2021.
Archer’s market capitalisation of just $217 million places it in the small cap category as well. The company hasn’t secured revenue yet but recorded a net loss after tax of $2.8 million last year.
Fundamental flavour
There’s plenty that can be said about each company’s operating lines and the strengths and weaknesses of various product offerings. That’s not for this analysis. Here we’ll look at some of the numbers for a more informed and objective take. All measures are per Bloomberg data.
Ratios are a great way to bring two companies into the same line to make this comparison. We can use data obtained from the ratios to examine whether each name is performing well or not.
For instance, both companies aren’t profitable right now, in the sense they’ve both recorded after-tax losses in the last reporting period. That has an impact on certain measures of profitability.
Even still, Brainchip’s return on common equity (ROE) came in at -114% in H2 FY21, whereas Archer saw a -30% ROE.
Elsewhere, Brainchip’s gross margin of 82% stands out, as Archer hasn’t printed or recognised revenue from its operations just yet.
Instead, Archer recorded other comprehensive income of $1.72 million in 2021, mainly due to the sale of assets of $1.7 million to Chem X Materials Pty Ltd.
Both companies were also cash flow negative in their last half-yearly set of accounts, spending more on operations than earning in customer receipts.
Archer has a debt ratio of just 0.08% whereas its competitor here has a ratio of 8.6%. But that doesn’t mean to say it has an unhealthy balance sheet – both of these figures show each company is lowly geared with little debt. That could be a good sign in a world of rising interest rates.
In fact, Brainchip has ample liquidity, as short-term obligations are covered around 7x from and 6x from cash on the balance sheet.
Also, both companies appear to have a sufficient cash runway to last over the next 2 years, as determined by a funny little metric that analysts use, called the Altman’s Z-score.
The score takes various metrics from the financial statements and is used to predict a company’s likelihood of going bankrupt in the next 2 years, with surprising accuracy. A score of 2.99 or more indicates this safety. Brainchip and Archer are at 94.5 and 338 respectively.
Share price performance
Archer shares have compressed down in the last 12 months and have shaved 21% in that time. From their peak, shares have lost exactly two-thirds of their value at the time of writing, and are down another 8% this past month.
Brainchip shares on the other hand have had a similar outcome albeit a little bit further down the track (see below). Except, the company has held onto gains and is now up 70% in the past year and 37% in the past month of trade.
Whilst shares have retreated heavily in 2022 after going vertical in January, they are still quite top heavy and are floating well above 3 and 5 year highs.
Both stocks have also moved largely independently of each other over the last 12 months. Even more curious is, that Brainchip has moved pretty much on its own, despite what’s happened in the tech sector over this time. Let’s explain.
A commonly used term in finance is a statistic known as the stock’s ‘beta’; simply a measure of how closely it moves in unison relative to moves in the market (or an index).
A beta of 1 means the stock is perfectly correlated. It and the index move directly in unison, whilst minus 1 moves directly inversely to the index. A score of zero has no correlation whatsoever.
In this case, we’ll use the S&P/ASX All Technology Index, and what we’re trying to examine is what direction each stock moves when the index spikes up or down, and by how much. Typically, tech stocks move almost in unison with the wider tech sector and are called ‘high-beta’ stocks for that reason.
But not Brainchip. For the last 2 years its beta is -0.156, meaning that, on average, each move in the tech index has had little to no impact on the Brainchip share price.
In comparison, Archer has moved more closely. Its beta score is 0.87 – closer to 1 – meaning it has a much higher correlation to movements in the index.
Important to note, is that correlation doesn’t equal causation – these measures don’t show what’s causing the share price to change, rather how closely it moves compared to another benchmark.
These calculations, drawn from historical data, have implications on factors like diversification in portfolios, and also security selection – particularly at the professional level (think fund inclusion etc).
Valuation
Analysts haven’t glossed over both of these companies in enough detail to provide a comprehensive discounted cash flow valuation based on future cash flow projections.
Instead, we can look at valuation multiples for an apples-to-apples here. Archer is trading at 6.9x its book value of equity (P/B) but hasn’t printed sales, so P/B is what we need to focus on.
Brainchip on the other hand is trading at a P/B of 62.5x – but it has printed revenue, unlike its foe here, and warrants the premium. Although, it is trading at more than 750x sales – hardly a bargain.
Checking growth of these measures compared to each company’s enterprise value (EV) growth is a method that analysts use to assess the value of early-stage players with little earnings data to go by.
Brainchip’s EV has climbed 128% since 2020 and over 1,500% since 2018, compared to P/B growth of 106% and 612% in the same periods.
Meanwhile, Archer’s EV has grown 51% since 2020 and 950% since 2018, with P/B expanding just 25% and 538% in those times respectively.
Compare this to the benchmark S&P/ASX 200 Index (ASX: XJO), whose market cap has grown by 19% and 47%, whilst its P/B has grown by 9.5% and 21%.
Therefore it could be that Brainchip has created more value for its shareholders, outpacing Archer and smashing the benchmark in growing the book value of its equity. This has come alongside growth in its share price. What this means in terms of valuation – the market will decide.
Has it created more value for shareholders? I’ll let you be the judge.
Foolish takeaway
Both shares are running at different paces this year, but it’s interesting to know that they aren’t necessarily dancing to the tune of the tech sector.
Analyst opinion on each is very light and there are a lot of assumptions baked into each company’s forward revenue projections.
Nevertheless, whilst both shares have garnered serious attention over the last 12 months, there’s no telling in what direction the market will move next, let alone these two individual names.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/OenCZtr
The S&P/ASX All Ordinaries Index (ASX: XAO) is in the red today, down 0.64% to 7,738 points at the time of writing.
The ASX All Ords may be wobbling after the release of official notes from the US Federal Reserve’s latest meeting. The notes indicated that bigger interest rate hikes than usual — possibly 0.5% at a time — might be required to curb inflation once the Ukraine-Russia conflict eases, according to reporting by abc.net.au.
Among the drags on the All Ords index today are these three ASX small-cap shares, which have all touched new 52-week low prices.
The first ASX All Ords faller we’re looking at today is fashion footwear retailer Accent. It’s trading down 5.35% to $1.56 at the time of writing — its lowest level in a year. This is a long way down from the 52-week high of $3.08 reached in April 2021.
Next is online luxury goods retailer Cettire, which is currently down 7.42% at $1.06 — a new 52-week low. This ASX All Ords share is now down 78% on its 52-week high of $4.81 reached in mid-November. That was around the time the company announced a direct brand partnership with Staff International and reported strong trading momentum.
Lastly, we look at Audinate, which crashed to a new 52-week low of $6.13 in earlier trading. That’s a 4% decline on yesterday’s closing price of $6.39. It has since rebounded to its current price of $6.22 at the time of writing.
The last lot of price-sensitive news from Audinate came on 14 February when it released its 1H22 results. The audio-visual networking provider delivered strong revenue growth and said it was navigating supply chain issues well. Broker James Gerrish of Shaw and Partners responded the following day by slapping a $12 price target on this ASX All Ords small-cap. He’s still keen on the stock today, as my Fool colleague Tony reported.
ASX All Ords recap
The All Ordinaries index is down 2.4% year to date but up 7.8% over the past 12 months.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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. owns and has recommended AUDINATEGL FPO and Cettire Limited. The Motley Fool Australia owns and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended Accent Group and Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/HtvmqXO
The Xero Limited (ASX: XRO) share price has dropped 5% over the last two days.
Considering the market capitalisation of Xero is $15.7 billion (according to the ASX), this decline represents hundreds of millions of dollars.
Xero shares are seeing red, just like plenty of other ASX shares on the stock market. At the time of writing, the S&P/ASX 200 Index(ASX: XJO) is down by 0.6%.
Today, the WiseTech Global Ltd (ASX: WTC) share price is down 5.4%, the Novonix Ltd(ASX: NVX) share price is down 5.2%, the Block Inc (ASX: SQ2) share price is down 4.1%, the Webjet Limited (ASX: WEB) share price is down 3.9% and the Pro Medicus Limited (ASX: PME) share price is down 3.1%.
There haven’t been any announcements out of the company recently that could have affected the Xero share price. However, it is due to hand in its FY22 full-year result on 12 May 2022.
What is causing the ASX share market to be volatile?
Inflation and interest rates are getting much more investor attention these days.
A number of Australian economists now believe that June could be the month when interest rates start increasing in Australia, according to the Australian Financial Review.
Why do interest rates matter for the Xero share price? Or any asset price?
Billionaire Ray Dalio, founder of Bridgewater Associates, once said about interest rates and asset valuations:
It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow.
Before you consider Xero , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Xero wasn’t one of them.
The online investing service he’s 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 are better buys.
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. owns and has recommended Block, Inc., Pro Medicus Ltd., WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended Block, Inc., Pro Medicus Ltd., WiseTech Global, and Xero. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/LnZ75vY
Should you invest $1,000 in AVZ Minerals right now?
Before you consider AVZ Minerals, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AVZ Minerals wasn’t one of them.
The online investing service he’s 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 are better buys.
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 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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/KgXq7Rk
The ASX could be about to welcome a mining technology company amid a major commodities boom.
Chrysos Corporation might be gearing up to list on the market by May. The details of its IPO are expected to be finalised today, according to The Australian.
The company could be floating with a valuation of around $600 million following an initial public offering (IPO) worth approximately $200 million.
Let’s take a closer look at the CSIRO-born-and-backed company and its apparently imminent ASX float.
Could this ASX hopeful win out in the commodities boom?
Chrysos Corporation is seemingly gearing up to join its ASX mining clients on the exchange, potentially making the most of the current commodities boom.
According to the CSIRO’s Resourceful magazine, the company is “part spin-out, part employee start-up, part investor joint venture”. The scientific research agency still holds a significant portion of the company.
Chrysos Corporation’s mining technology – PhotonAssay – has been developed by the CSIRO over the last 15 years and commercialised by the company for the last five years.
It’s said to be a faster, safer, more accurate, and more environmentally friendly way to analyse gold samples. It could replace the industry standard, fire assay, which employs extreme heat and chemicals.
Chrysos Corporation makes its coin by leasing its equipment, and licensing its technology, to mining companies.
But what kind of cash could the commodities-focused ASX IPO hopeful be bringing in?
Those metrics are reportedly expected to increase to $26.6 million and $3.2 million respectively next financial year. And, in following years, they could double.
The CSIRO isn’t the only entity with a hold of Chrysos Corporation. Perenti Global Ltd(ASX: PRN) also owns shares in the ASX hopeful.
The Australianhas also recently reported Regal Funds Management, Wilson Asset Management, and Tribeca Investment Partners each own stakes in Chrysos Corporation.
No doubt, all eyes will be on the mining tech company ahead of its potential IPO and ASX float.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/9Cy7whn
In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of Wall Street and is tumbling lower. At the time of writing, the benchmark index is down 0.7% to 7,438.1 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:
The Andromeda Metals share price has continued to sink and is down a further 15% to 9.8 cents. Investors have been selling this kaolin explorer’s shares this week following the release of a bitterly disappointing definitive feasibility study (DFS) for the Great White Kaolin Project in South Australia. Management revealed an internal rate of return (IRR) of 36% and a 5.9 years payback, which compares unfavourably to previous estimates of 175% and 15 months, respectively.
The ARB share price is down 5% to $39.39. Part of this decline is attributable to the 4×4 parts manufacturer’s shares trading ex-dividend this morning for its interim dividend. Eligible shareholders can now look forward to receiving this fully franked 39 cents per share dividend later this month on 22 April.
The BCI Minerals share price is down 7% to 44.2 cents. This follows the release of an update on its Mardie project this morning. Comments around costs appear to have spooked investors. Management commented: “Cost pressures are evident across the mining and construction sectors in Western Australia. We are closely monitoring and managing our contracts and are reviewing the inflationary impact on the total Mardie capital cost.”
The WiseTech share price is down 6% to $49.59. This appears to have been driven by weakness in the tech sector today following another very poor night of trade on the Nasdaq index on Wall Street. It isn’t just WiseTech that is tumbling today. At the time of writing, the S&P ASX All Technology index is down 3.1%.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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. owns and has recommended WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/UgBDxPG
It might be a red day for the S&P/ASX 200 Index (ASX: XJO) on Thursday, but that hasn’t stopped a handful of shares from reaching 52-week highs today.
In afternoon trade, the Aussie benchmark index is 0.5% worse for wear, treading around 7,450 points. Yet, a select few ASX 200 constituents are being embraced amongst the sour session.
Following on from hitting a new all-time high yesterday, the Dan Murphy’s and BWS owner is setting new records again today. Shares in Endeavour Group have lifted more than 1% during trade to reach $7.66.
However, there’s not a whole lot of new information out from the company today. Insinuating the company’s shares might still be revelling in an improved outlook from Goldman Sachs. The broker set its price target for Endeavour Group at $8 per share.
The next ASX 200 share leaving the market green with envy is coal producer New Hope Corporation. Shares are making the trek upwards today despite there not being any announcements from the $3.1 billion energy giant. At the time of writing, the New Hope share price is up 2.2% to $3.79 — with an intraday high of $3.80.
For reference, this stampede into positive territory has continued after non-exec director and non-exec chair Thomas Millner and Robert Millner acquired more shares. According to the filings, the two board members added more than $1.68 million worth of New Hope shares across 4 April and 5 April.
Finally, Worley is another new 52-week high candidate today. Although, the engineering services company has slipped into the negative as the day has gone on. Regardless, Worley shares climbed to $13.89 shortly after the market opened. Now that price is closer to $13.50 as we head into the afternoon.
This ASX 200 share is another name hitting the new high milestone without much substance today. Despite Worley shares charging 10% higher in the last month, the company hasn’t released a price-sensitive announcement since 23 February, which was its half-year results.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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 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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/OgjWi1u
