Category: Stock Market

It’s a tough day for S&P/ASX 200 Index (ASX: XJO) oil shares today.

At time of writing, the ASX 200 is up 1.4% while the S&P/ASX 200 Energy Index (ASX: XEJ) is down 2.1%.

Big name players like Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL) and Beach Energy Ltd (ASX: BPT) aren’t helping out.

Of these 3 ASX 200 oil shares, only Santos is outperforming the Energy Index, with Santos shares down 1.7% at the time of writing.

Meanwhile the Woodside share price is down 4.5%, and Beach Energy shares have tumbled 6.2%.

So, what’s going on?

ASX 200 oil shares slide alongside crude prices

At this time yesterday, Brent crude oil was trading for US$130 per barrel, the highest level since 2008.

Energy prices skyrocketed during Russia’s initial deployment of forces along the Ukraine border and eventual full-scale invasion of its neighbour.

But overnight some early signs emerged that the conflict might end sooner than many fear. That could avert further humanitarian tragedies alongside quelling investors’ angst over limited energy supplies just as the world moves to fully reopen from COVID-19.

At time of writing, Brent crude oil is worth US$111 per barrel, down more than 15% in just over 24 hours, clearly putting pressure on ASX 200 oil shares.

While that’s still very pricey by historical standards, investors had been bidding up energy shares over the past month and look to be taking some profits off the table.

Despite today’s retrace the Woodside share price, for example, remains up 19.2% since 11 February.

Rival ASX 200 oil share Santos is up 2.7% over the month while Beach Energy shares are still up 5.4%.

What else is putting downward pressure on oil prices?

Word that OPEC might open up the taps wider also hit the markets yesterday.

Yousef al-Otaiba, the UAE’s ambassador to the United States said (quoted by Bloomberg), “We favour production increases and will be encouraging OPEC to consider higher production levels.”

A number of other OPEC nations were quick to pour cold water on the idea of ramping up output beyond the cartel’s current agreement. But the rift within OPEC looks to have helped send crude prices, and ASX 200 oil shares lower.

And yesterday in the United States, Energy Secretary Jennifer Granholm encouraged US producers to up their own production.

“We are on a war footing,” she said.

Granholm continued:

We are in an emergency, and we have to responsibly increase short-term supply where we can right now to stabilize the market and to minimize harm to American families… Right now, we need oil and gas production to rise to meet current demand.

If producers outside of Russia do manage to make up for banned Russian oil exports, it could keep a lid on rocketing crude price.

Even so, at today’s US$111 per barrel, ASX 200 oil shares are enjoying some comfortable margins.

The post Why are ASX 200 oil shares taking such a beating today? appeared first on The Motley Fool Australia.

More reading

• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• Woodside (ASX:WPL) share price tumbles but boss sees ‘a change with us for decades’
• 5 things to watch on the ASX 200 on Thursday
• Record $36bn in dividends could help ASX share market recovery
• Beach (ASX:BPT) share price up: Oil prices predicted to stay higher for longer

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.

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The boss of Macquarie Group Ltd (ASX: MQG) has said that the United States is going to be the region that makes the most profit for the business in 2022.

Macquarie is one of the biggest businesses on the ASX. The global investment bank already generates two-thirds of its earnings from overseas.

It has a number of segments including banking and financial services, investment banking (Macquarie Capital), commodities and global markets, and asset management.

Macquarie is increasingly global

The Macquarie CEO, Shemara Wikramanayake, explained the situation at the Australian Financial Review Business Summit.

Ms Wikramanayake said:

With Macquarie businesses, we’re getting to the point where even though the Australian business is growing, we’re probably going to be now earning each year more income from Europe and North America. And certainly the US this year will be our biggest earning region.

What’s driving the strength of the US economy?

Macquarie’s leader explained that the US economy is performing strongly. Before COVID-19, it had reached full employment and wages were starting to rise.

The terrible impacts of COVID-19 led to lockdowns, which did impact some sectors and individuals, but the re-opening is helping. The US has also seen a much larger amount of stimulus – bigger than Australia’s. US stimulus amounted to US$5.4 trillion, which was 25% of GDP, compared to 15% in Australia, according to Ms Wikramanayake.

Wages growth could also start flowing through the national economy as well because the demand for workers is six times the labour market creation. So, Macquarie is expecting wages to grow strongly in the US.

Interest rate considerations

She also pointed out that the US Federal Reserve is entering this inflation environment with very low interest rates. The US Fed was expected to start rising in March by 0.50%, but now it seems the first rise will be a 0.25% increase amid the Russian invasion of Ukraine.

The supply chain impacts are still there, increasing inflation. But the flow-on impacts of the conflict and sanctions on Russia could lead to inflation increasing even faster.

However, the Macquarie boss suggested that the US Fed will want to strike a balance with the rate hikes so that the economy isn’t sent into recession by increasing the interest rate too quickly.

She also said:

And so if you had the slightest supply shocks in that environment, you exacerbate price as well. We’re going through really high energy prices and it could sustain if Russia-Ukraine plays out badly or if we’re doing the transition too fast.

Is the Macquarie share price a buy?

In the most recent update for the three months to December 2021, it said that there were improved market conditions. That month was a record quarter thanks to profit being substantially up with higher principal income in Macquarie Capital including “exceptionally strong” investment realisations in the infrastructure (including green energy), business services and technology sectors.

Citi currently rates the global investment bank as a buy, with a price target of $226.

The post Why Macquarie (ASX:MQG) says US will become bank’s ‘biggest earning region’ in 2022 appeared first on The Motley Fool Australia.

More reading

• Broker tips Macquarie (ASX:MQG) share price to rise 13%
• Why the Pilbara (ASX:PLS) share price is a buy right now: expert
• Is the ASX set to welcome yet another BNPL share? Macquarie-backed company gears up for IPO
• Is Macquarie (ASX:MQG) gearing up to ink its next big deal?
• ‘We are accountable’: Macquarie (ASX:MQG) weighs in on the future of green hydrogen

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Australian markets have taken a backward step in 2022 as the reality of geopolitical conflict, rising inflation and interest rates, plus the potential for a slowdown in global growth sets in.

That’s a mouthful, but the reality nonetheless. Markets across the board are seeing red and correlations are all turning positive, meaning most asset classes are heading one way – south.

But that’s broadly speaking. At the extremes, there are plenty of shares that are outstripping their peers both here in Australian exchanges and on global terms.

Strong analysis and due diligence will generally trump those styles that involve simply jumping aboard the gravy train and betting on hope. Many experts argue that, over the past two years, there’s been a dislocation in fundamentals and the ‘hype’ of certain themes or trends.

That’s why, even as the S&P/ASX 200 Index (ASX: XJO) has slipped more than 4% this year to date, if we look a little deeper, we see there are still various pockets of green among ASX shares.

Don’t overlook microcaps, this fundie says

Whilst Australian large caps have suffered losses this year, Marcus Burns, portfolio manager at Spheria Asset Management, is bullish on the smaller end of town.

Micro caps – those ASX shares with a market capitalisation of below $300 million and that sit outside of the S&P/ASX 300 Index (ASX: XKO) – tend to be more volatile and carry more risks than your average passive index fund.

In fact, many large Australian fund managers are mandated to invest in ASX 200 companies for that very reason, in order to preserve client capital during times of volatility.

But not all fundies are bound by the same mandate, however, and active managers such as Spheria are able to explore the more underexploited areas of the market, away from the crowded large-cap space.

Speaking to Livewire recently, Burns noted that small-cap and micro-cap stocks are often “simpler than large companies”, and that one can often dig deeper and “get granular” when reading accounts.

As with all prudent investing, however, it’s essential to keep a cool head, focus on the fundamentals, and try to avoid the short-term hysteria. Again, the market seems to have been rewarding unsavvy behaviour of late, Burns said.

In micro caps people seem to have lost their way. They’re chasing stories and forgetting about valuation being important. We think valuation is important. Cash flow is central to valuation, and also works as a screening tool for us. All those things tie together to work as being central to our process.

Which ASX share is this expert bullish on?

Burns is constructive on NZME Ltd (ASX: NZM), the “old school media business in New Zealand”. This ASX share has its foothold on the radio network in NZ and is also the owner of the New Zealand Herald.

Not only that, but it also owns an online property portal called OneRoof, Burns says, and that’s sure to fold in more revenue at the top for the company in years to come.

Moreover, the fundie likes NZME’s pivot and transformation into digital media, something which he says the company has executed well to date.

“They’re going to get more out of digital advertising. That’s coming through strongly in the numbers. Also, the radio is starting to digitise, with some of the digital streaming services you can get on the radio,” he said.

The company is also in talks with media giants Google and Meta, nee Facebook, Burns says, and this might come through to earnings in a big way.

The graph above shows how the NMZE share price has been outperforming both the ASX 200 and the S&P/ASX Small Ordinaries Index (ASX: XSO).

NZME shares are currently down 2.59% for the day at $1.315 apiece. They are also slightly in the red this year to date. However, in the last 12 months, this ASX share has climbed more than 71% and is now up around 10% for the month.

The post Why this old-school ASX share is under-appreciated: fundie appeared first on The Motley Fool Australia.

More reading

• Has the bottom been and gone? Zip (ASX:Z1P) share price lifts 9% in 2 days
• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• Why are ASX uranium shares having such a stellar day?
• Why is the Block (ASX:SQ2) share price soaring 8% today?
• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher

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.

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The Zip Co Ltd (ASX: Z1P) share price is taking flight on Thursday despite there being no announcements from the buy now, pay later (BNPL) company.

In afternoon trade, shares in the instalment payment provider are up 8.3% to $1.765. So far today, more than 11 million Zip shares have changed hands.

Is a profitable future on the table?

The Zip share price, and the whole BNPL sector for that matter, have long been under pressure for their lack of profitability.

Once upon a time, this was not considered an issue by investors, as BNPL companies touted their blistering rates of growth. However, as the market becomes more mature and saturated, and the pressure of potentially higher interest rates loom, analysts have been less forgiving.

For reference, Zip’s trailing twelve-month (TTM) net loss at the end of December 2021 was $419.3 million. This showed an improvement upon the TTM net loss at the end of June 2021, which came in at $658.8 million.

Yet, some analysts were still disappointed by Zip’s latest results published on the ASX. Quoting the first-half loss of $214.2 million, the team over at UBS downgraded its outlook on the Zip share price.

However, an announcement from Sezzle Inc (ASX: SZL) today might have investors think that there still could be a path to profitability.

The BNPL company, which is set to be acquired by Zip, revealed it would be reducing its workforce by 20%. This reduction is expected to save Sezzle $10 million in costs per year.

Additionally, Sezzle CEO Charlie Youakim said, “Sezzle has experienced significant growth in its history and is now at an important juncture, as we look to take decisive steps toward profitability and free cash flow.”

Experts’ stance on the Zip share price

Aside from today, sentiment towards the Zip share price has been rather cold. As my colleague Monica recently covered, fund manager Abrdn Australian recently ditched Zip shares for a position in Pro Medicus Limited (ASX: PME).

Likewise, UBS analysts have a sell rating on the BNPL company. At present, the broker thinks the Zip share price is worth $1 — which would suggest a nearly 43% downside from here.

Finally, Zip shares are down roughly 79% over the past year.

The post Has the bottom been and gone? Zip (ASX:Z1P) share price lifts 9% in 2 days appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Is the Zip (ASX:Z1P) share price heading on a one-way street to $1?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Glitch! Why are ASX tech shares getting hammered on Monday?
• Why we just sold Zip and bought Pro Medicus (ASX:PME) shares: fundie

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. owns and has recommended ZIPCOLTD 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 Bruce Jackson.

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It has been a great day for the S&P/ASX 200 Index (ASX: XJO) on Thursday. In afternoon trade, the benchmark index has followed Wall Street’s lead and is charging 1.4% higher to 7,151.5 points.

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

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is down 4.5% to $26.88. Investors have been selling this gold miner’s shares following a sizeable pullback in the gold price overnight. This was caused by investors switching back to risk assets after investor sentiment improved. The S&P/ASX All Ords Gold index is down 2.5% at the time of writing.

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price is down 14% to $1.20. This decline appears to have been driven by a broker note out of Credit Suisse this morning. According to the note, the broker has downgraded the nickel miner’s shares to a neutral rating and cut its price target to $1.34. It suspects that investor sentiment may suffer due to its relationship with Tsingshan, which was caught up in a massive short squeeze.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is down 7.5% to $110.78. The majority of this decline can be attributed to the mining giant’s shares trading ex-dividend this morning for its enormous $6.63 per share fully franked final dividend. Eligible shareholders can now look forward to being paid this huge dividend next month on 21 April.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is down 5% to $31.59. Investors have been selling Woodside and other energy shares today after oil prices pulled back materially overnight. Traders were selling oil after the UAE and Iraq indicated that they could increase their production to offset supply concerns.

The post Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Woodside (ASX:WPL) share price tumbles but boss sees ‘a change with us for decades’
• Here’s why the Rio Tinto (ASX:RIO) share price is sliding 7% today
• Here’s why the Newcrest (ASX:NCM) share price is in the red today
• Is the Nickel Mines (ASX:NIC) share price chaos a buying opportunity?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX uranium shares are exploding today on the back of decade-high uranium prices and industry optimism.

Among the stocks leaping higher today are Boss Energy Ltd (ASX: BOE), Paladin Energy Ltd (ASX: PDN), Deep Yellow Limited (ASX: DYL), and Vimy Resources Ltd (ASX: VMY).

So why are ASX uranium shares doing so well today?

Uranium price outlook positive

The Boss Energy share price is surging 8% today, Paladin is exploding 14%, Deep Yellow is gaining 7%, and Vimy Resources is soaring nearly 12%.

Uranium prices gained 1.69% in overseas markets overnight, trading economics data reveals. The price of the metal extended its surge above $53 per pound, the highest price since November 2011.

One company boss believes the metal could top $US100 a pound. At the time of writing, uranium is $54.05 per pound.

Vimy CEO Steven Michael told the Financial Review that geopolitical tension and climate change could see the price edge ahead.

Michael said:

There is a real positive sentiment towards not just uranium, but uranium supply from non-Eastern European countries.

Western Europe is going to have to change its reliance on Russian gas, and they’d not want to go back to coal so nuclear plays a really strategic role in that.

Meanwhile, US President Joe Biden is considering sanctions on Russian uranium supplier, Rosatom Corp, Republic World reports. The White House is reportedly in discussions with the nuclear power industry on the impact of such a ban.

Russia supplies about 10% of global uranium. In the past month, the uranium price has surged by nearly 25%. Over the past year, it has rocketed 95%.

Paladin has advanced the most out of the ASX uranium shares mentioned here. Yesterday, Bell Potter increased the price target on Paladin shares to 96 cents. Currently, the Paladin share price is 88 cents.

ASX uranium share prices

Boss shares have rocketed 1,800% in the past year, while Paladin has soared 114%. The Deep Yellow share price has seen gains of 59%, and Vimy Resources shares have surged 118% in a year.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has returned about 6.5% in the past year.

The post Why are ASX uranium shares having such a stellar day? appeared first on The Motley Fool Australia.

More reading

• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• What a Boss! Why the Boss Energy (ASX:BOE) share price is soaring 13% today
• Paladin Energy (ASX:PDN) share price jumps 9% on broker upgrade

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.

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The S&P/ASX 200 Index (ASX: XJO) is having a pretty pleasing day of trading thus far this Thursday. At the time of writing, the ASX 200 is up a pleasant 1.45% and back over 7,100 points. But that is currently being put to shame by the Block Inc CDI (ASX: SQ2) share price.  

Block shares are currently up a very healthy 8.51% at $153.21 each after losing $141.20 yesterday and opening at $152.05 a share this morning. So what’s behind this rather decisive move upwards that investors have given the new Afterpay owner today? 

Well, there are a number of factors that could be helping to boost investor sentiment. The first is the general good mood of the market. While the ASX 200 is enjoying some healthy gains, most ASX tech shares are rocketing today. Apart from Block’s move, we’ve seen some healthy movements from Zip Co Ltd (ASX: Z1P), Appen Ltd (ASX: APX), Life360 Inc (ASX: 360), Xero Limited (ASX: XRO) and WiseTech Global Inc (ASX: WTC). 

Afterpay, your debt is settled…

This follows similar moves in US tech shares on the American markets last night, particularly on the Nasdaq. That included Block Inc (NYSE: SQ), the company’s primary US listing, jumping more than 11% overnight. Today, the BetaShares Nasdaq 100 ETF (ASX: NDQ), which tracks the Nasdaq Index, has risen 2.84% so far. 

But we’ve also got a Block-specific development today as well. This morning, before market open, Block announced that its Afterpay subsidiary has “redeemed 100% of the principal amount of the A$1.5 billion Zero Coupon Convertible Notes due 2026, as a result of the election of the [holders] to require Afterpay to redeem…”. 

In practice, this essentially means that Block has settled $1.5 billion in debts that Afterpay had taken out prior to Block’s acquisition. The debt was scheduled to expire in 2026, so perhaps investors are happy that it won’t be sitting on Block’s books for that long. 

Whatever the reason for today’s strong move, it will no doubt have pleased many Block shareholders.

Block share price snapshot

Block shares have had a rather wild time of it lately. Although the company is now up more than 32% since 24 February, Block remains down 13.2% since its ASX listing back in January. At the current pricing, Block shares have a market capitalisation of US$64.92 billion. 

The post Why is the Block (ASX:SQ2) share price soaring 8% today? appeared first on The Motley Fool Australia.

More reading

• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Why Argosy Minerals, Block, Core Lithium, and Mineral Resources are storming higher
• Glitch! Why are ASX tech shares getting hammered on Monday?
• Why Block, GQG, Qantas, and Unibail-Rodamco-Westfield are sinking today

Motley Fool contributor Sebastian Bowen owns Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, BETANASDAQ ETF UNITS, Block, Inc., Life360, Inc., WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd, BETANASDAQ ETF UNITS, Block, Inc., WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and is charging higher. At the time of writing, the benchmark index is up 1.5% to 7,160.8 points.

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

Block Inc (ASX: SQ2)

The Block share price is up 8.5% to $153.24. Investors have been buying this payments giant’s shares on Thursday following a strong gain by its NYSE-listed shares overnight. This appears to have been driven by a rebound in the tech sector after investor sentiment improved.

Myer Holdings Ltd (ASX: MYR)

The Myer share price has jumped almost 20% to 49 cents. This follows the release of the department store operator’s half year results this morning. According to the release, Myer delivered an 8.5% increase in sales to $1,517.4 million and a 55.2% lift in net profit (excluding JobKeeper) to $32.3 million. This allowed Myer to declare its first dividend since FY 2017.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price has surged 14% higher to 88 cents. Yesterday this uranium producer’s shares were upgraded to a speculative buy rating with a 96 cents price target by the team at Bell Potter. It commented: “The Uranium price continues to recover from cyclical lows, as limited near-term supply spurs the spot market, whilst the global path to decarbonisation re-shapes the role of nuclear energy over the longer-term.”

Qantas Airways Limited (ASX: QAN)

The Qantas share price is up almost 7% to $4.97. Investors have been buying this airline operator’s shares after a sharp pullback in oil prices overnight. This follows news that Iraq and UAE are open to increasing production to offset lost supply from Russia. Given how much fuel Qantas consumes, this news is a positive for its margins.

The post Why Block, Myer, Paladin Energy, and Qantas shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Why the Qantas (ASX:QAN) share price is leaping 5% today
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Myer (ASX:MYR) share price up 21% amid strong half-year result and first dividend since FY17
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Wednesday

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 Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Ltd (ASX: FMG) share price has been volatile this year. But is the iron ore miner a buy today?

Whilst Fortescue shares have risen slightly over the past six months, it is actually down 17% in the last month.

What’s going on with the Fortescue share price?

Only the transacting investors know why they trade at higher or lower prices. But commodity businesses often follow the price of that commodity.

Fortescue is one of the world’s largest iron ore miners, so changes in the iron ore price can have a significant impact on the Fortescue share price.

There has a been a recovery from the lows of late 2021. There was a brief dip during February 2022, but the iron ore price has gone back close to the 2022 highs. There is an ongoing market focus on the Russian invasion and inflation.

But results can also have an impact on the Fortescue share price. It was less than a month ago that the company announced its half-year result for the six months to 31 December 2021.

FY22 half-year result

The company reported a 13% decline in revenue after a 16% decline in the average revenue per dry metric tonne of iron ore to US$95.58. The C1 cost increased by 20% to US$15.28 per tonne.

The underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 28% to US$4.76 billion, whilst net profit after tax (NPAT) fell 32% to US$2.78 billion.

However, the company noted that there was a strong operating performance across Fortescue’s supply chain, together with the successful integration of Eliwana, which contributed to record first half iron ore shipments and ore processed.

The miner decided to pay an interim dividend of $0.86 per share, representing a 70% payout of first half NPAT.

Fortescue Future Industries (FFI)

As the operations of FFI get bigger, it could have a bigger influence on the Fortescue share price.

What’s FFI? It’s aiming to take a global leadership position in green energy and green technology, leading the charge to decarbonise hard-to-abate sectors. It’s investing to create a global portfolio of green energy projects to supply 15 million tonnes per year of renewable green hydrogen by 2030.

It has received planning approval from the Queensland Government for the green energy manufacturing centre in Gladstone (Queensland). The first stage development is an electrolyser manufacturing facility with an initial capacity of 2GW per year.

Fortescue Future Industries also recently announced that it had formed a working agreement with Airbus to target a plane that runs on green energy by 2035.

Is the Fortescue share price a buy?

Quite a few brokers actually think that the Fortescue share price is a sell.

Credit Suisse rates it as ‘underperform’ with a price target of just $14 because of the valuation compared to its iron ore mining rivals like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). It also wants more information on FFI.

Morgan Stanley rates the Fortescue share price as ‘underweight’ with a price target of just $13.

Ord Minnett rates the miner as a ‘hold’ but the price target is $21 – more than 10% higher than where it is now.

The post Is the Fortescue (ASX:FMG) share price a buy right now? appeared first on The Motley Fool Australia.

More reading

• Record $36bn in dividends could help ASX share market recovery
• Will the Fortescue (ASX:FMG) share price fly as it links up with Airbus?
• 15% yield! But are these ASX high-yield shares dividend traps?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Why is the Fortescue (ASX:FMG) share price having such a stellar start to the week?

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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 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.

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Shares in Race Oncology Ltd (ASX: RAC) are soaring and trading 5% in the green at $2.77 apiece. At one point investors had bid up the share price to $2.99 before it levelled off.

The company’s lead drug compound, Zantrene, is back in the headlines again today. The company has revealed “compelling results” in the final readouts from its clear cell carcinoma preclinical program.

What did Race Oncology announce today?

The biotech company advised that the latest research on Zantrene shows that, on its own and in combination with known kidney cancer drugs, it can kill kidney cancer cells at clinically-relevant concentrations.

“These results support advancing Zantrene into the clinic as a possible new treatment option for advanced kidney cancer patients”, the company said.

Specifically, the company talks about the drug label’s efficacy in clear cell renal cell carcinoma. Clear cell renal cell carcinoma (ccRCC) is the most common type of kidney cancer. It comprises more than 70% of renal tumours.

Whilst ccRCC is still relatively rare, only accounting for approximately 2% of global cancer prevalence and mortality, “it has more than doubled in incidence over the past half-century, and today is the ninth most common cancer in the developed world”, Race Oncology notes.

Treatment prognosis is generally poor compared to many other conditions, so Race’s development comes as a welcome update.

Race Oncology said that findings from the study clearly demonstrate that Zantrene kills ccRCC cells. Not only that, but it also slows the growth of these cells — a testament to its mechanism of action.

Zantrene is even more effective at killing cells when used in combination with other kidney cancer drugs. The strongest combinations were with lenvatinib, cabozantinib and pazopanib.

Race Oncology will now conduct further preclinical studies in order to fully understand the mechanisms involved.

Management commentary

Speaking on the findings, Race Oncology Chief Scientific Officer, Dr Daniel Tillett said:

The results from Prof Verrills laboratory are highly encouraging and supportive of our clinical plans for Zantrene in kidney cancer. Advanced kidney cancer has a large unmet need for improved treatment options and Zantrene
in combination with existing treatments may offer new hope for patients with this devastating disease.

Race Oncology’s Chief Executive Officer, Phillip Lynch added:

We are again pleased to note Zantrene’s effectiveness both in isolation and in combination with other known kidney cancer treatments. This result encourages clinical translation, and we look forward to determining an optimal approach for progressing clinical study.

Race Oncology share price summary

In the past 12 months, the Race Oncology share price has fallen 29%. In 2022 alone, it is down 23%.

The post ‘Compelling results’: Here’s why the Race Oncology (ASX:RAC) share price is rocketing 5% appeared first on The Motley Fool Australia.

More reading

• Why did Race Oncology (ASX:RAC) shares bounce 14% higher on Wednesday?
• Why did the Race Oncology (ASX:RAC) share price drop 10% today?

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.

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