Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is enjoying a day of modest gains so far this Monday. At the time of writing, the ASX 200 is up 0.29%. But two ASX 200 energy utility shares are performing far better.

Origin Energy Ltd (ASX: ORG) shares are currently outperforming the broader market. Origin shares have put on a robust 1.72% so far and are sitting at $6.215 each. That’s not too far from the company’s 52-week high of $6.37 that it hit just last week. After a lacklustre couple of years, Origin has really pumped the gas over the past year or so. Its 12-month gains now sit at around 43%, which includes an almost 19% rise over 2022 alone.

But that’s nothing compared to the AGL Energy Ltd (ASX: AGL) share price. 

AGL shares are presently enjoying gains that would make even Origin blush. AGL is currently up by an enthusiastic 4% so far today and is now asking $7.115 a share. Like Origin, AGL has had a very tough couple of years. Ever since hitting more than $27 a share back in 2017, AGL has been suffering a very long and protracted fall.

The company found a new multi-decade low of just $5.10 a share back in November. But since then, this energy retailer has also been enjoying a renaissance. At today’s pricing, it is now up around 40% from those lows, although AGL still remains down by nearly 36% over the past 12 months.

So what is causing these two ASX energy utility shares to so comprehensively outperform the broader market today?

Are higher energy prices lifting AGL and Origin shares?

Well, we can’t be certain. It doesn’t appear these moves are related to any official news or announcements out of either company today. But there is something else going on that could be feeding investor sentiment. That is energy prices.

Since Origin and AGL are utility shares, generating and onselling energy services, they are fundamentally exposed to the cost of raw energy commodities such as oil, coal, and gas. And the cost of these commodities has been exploding in recent months. As recently as December, Brent crude oil was under US$70 a barrel. But today, it is well over US$90 a barrel. That might explain why both AGL and Origin shares have enjoyed such a healthy start to 2022.

But why is oil so hot right now? Well, the current tensions surrounding the energy-intensive states of Russia, Ukraine, and the United States seem to be pushing energy commodity prices through the roof. According to a recent report in the Australian Financial Review (AFR), “hedge funds say oil is on the cusp of hitting $US100 a barrel”. Portfolio manager of the Tribeca Natural Resources Fund Ben Cleary told the AFR, “$US100 oil is almost consensus now… I think the bigger question is, how high can oil go?”

Expectations of such acute pricing pressure in the energy markets may well be why investors are rushing into ASX 200 energy utilities like Origin and AGL today.

The post Power surge! These 2 ASX 200 utilities shares are storming higher today appeared first on The Motley Fool Australia.

More reading

• Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years
• AGL (ASX:AGL) blasted for ignoring shareholders and committing to ‘crumbling assets’
• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• 5 things to watch on the ASX 200 on Monday
• Is Vanguard MSCI Index International Shares ETF (ASX:VGS) an excellent investment for the long-term?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Aussie fund manager Magellan Financial Group Ltd (ASX: MFG) continues to sink. In afternoon trade on Monday the Magellan share price is down 0.22% at $18.07.

Magellan has been the ASX’s gossip-point these past few months. A string of high-profile moves and fund outflows sees the stock faltering to 52-week lows at the time of writing, after collapsing more than 63% in the past year.

Since 4 January, shares have collapsed another 16.5% as the negative momentum from 2021 spills into the new year. Magellan is now in the red across all major timeframes.

Has the Magellan share price bottomed?

Analysts from asset management and investment banking giant JP Morgan are concerned the recent departure of co-founder Hamish Douglass could spell further trouble for Magellan.

The firm notes that Magellan is now under considerable business pressure and ongoing uncertainty. Douglass’ withdrawal only adds to the weight.

“Following the surprise exit of Brett Cairns and subsequent appointment of Kirsten Morton as interim CEO,” the broker said, “the leave of absence being taken by Mr Douglass and appointment of Mr Mackay announced today add substantial uncertainty to the leadership at Magellan at a time when the business is facing enormous pressure around its performance and flows.”

“We are concerned now that there could be some risk of turnover in the investment team as a result of this, with possible further impacts to product ratings as well as MFG’s reputation amongst financial advisers, thereby impacting both retail and institutional flows.”

With the calamity, JP Morgan has wound back its price target on Magellan for 2022. It is now valuing the fund manager at $16.50 per share, down from almost $20 previously.

JP Morgan analysts acknowledge that Magellan has a strong track record and innovative product design. But they aren’t too rosy on its outlook in the near term.

“Despite valuation, we expect the stock to remain under pressure until fund performance improves and the near-term fund flow profile stabilises.”

Waiting for rock bottom

Meanwhile, analysts at Swiss investment bank UBS aren’t so sure. They note there could potentially be further downside imminent for Magellan shareholders.

UBS analysts believe the market has priced in each negative event in Magellan’s recent narrative. So much so, the share price now reflects a soup of fund outflows, high management fees and the key-person risk that Hamish Douglass presents with his recent departure.

Since, fellow co-founder Chris Mackay has stepped in. He has assured the market that Douglass has the full support of investors since making the decision to temporarily step back.

Nevertheless, UBS believes the market should have picked up these positive moves. Especially given the sharp run down in the fund’s share price.

Plus sharp downturns in two of the fund’s largest positions, Netflix and Facebook, have only added to the downbeat incremental performance that “does not appear to have turned the corner” in 2022, the broker says.

It rates the stock a sell and values Magellan at $17 per share. According to UBS, that suggests more than $1 of downside potential still yet to be priced in.

As to whether Magellan has bottomed or not… Judging by the view of these two brokers, the possibility of more downside is certainly on the cards. Unless the market sees otherwise and starts to drive shares north once more.

The post Down 60% in a year, has the Magellan (ASX:MFG) share price reached the bottom? Brokers weigh in appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to sell next week
• Why AGL, Magellan, Xero, and Zip shares are sinking
• ASX 200 (ASX:XJO) midday update: IAG upgrades guidance, Magellan sinks again
• Magellan (ASX:MFG) share price slides 6% as FUM bloodbath continues

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 Woodside Petroleum Limited (ASX: WPL) share price touched a fresh 52-week high of $27.49 today.

After spending the majority of 2021 around the sub $25 mark, the energy giant’s shares have since accelerated this year.

At the time of writing, Woodside shares have slightly retraced to trade at $27.40, up 3.51%.

What’s elevating Woodside shares?

The price of oil has surged in recent times following a potential militarily conflict between regional power, Russia and Ukraine.

US president Joe Biden held a virtual meeting with Russian President Vladimir Putin yesterday. With no agreement reached to prevent a possible invasion, the price of oil has soared to nearly US$100 per barrel. It’s worth noting that this is the highest level since late 2014 and is in stark contrast to when oil prices were in negative territory in 2020.

A number of pipelines run through Ukraine, connecting Europe with Russian gas and oil companies. Should war break out, there are fears that Russia could cease supplying the much-needed energy to dependant countries like Germany.

Currently, brent crude, considered as the benchmark for oil prices, is fetching for US$95.98 per barrel. This represents an increase of about 11.5% over the past month alone.

Further fuelling the energy market is that the supply of oil is extremely tight.

Last Friday, the International Energy Agency released its oil market report noting that Organisation of Petroleum Exporting Countries (OPEC) are unable to meet increased output targets.

World oil demand is rising 3.3 million barrels per day (mb/d) in 2022, returning to pre-COVID levels of 99.7 mb/d.

As for supply, disruptions and production shortfalls by some OPEC members are tempering growth expectations for 2022. In December, world oil supply rose by a modest 130 kb/d to 98.6 mb/d.

This leaves a global shortfall of around 900,000 barrels of oil per day at the current rate.

Pleasingly for Australian oil and gas producers, this could lead to export opportunities to fill the energy gap. Particularly at current prices, Woodside among other industry players stands to benefit from this turmoil.

The S&P/ASX 200 Index (ASX: XJO) is managing to keep afloat, up 0.38%, however, the S&P/ASX 200 Energy Index (ASX: XEJ) has climbed 3.42% today.

Woodside share price summary

The Woodside share price has gained almost 10% over the last 12 months and is up 25% year-to-date.

Based on today’s price, Woodside commands a market capitalisation of roughly $26.57 billion, with approximately 969.63 million shares on issue.

The post Here’s why the Woodside (ASX:WPL) share price just cracked a new 52-week high appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Own Woodside (ASX:WPL) shares? Here’s why the oil giant will face off against investors at its AGM
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Analysts rate these ASX dividend shares as buys

Motley Fool contributor Aaron Teboneras owns Woodside Petroleum Ltd. 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top of the charts after its short interest rose to 15.3%. Short sellers are likely to have been disappointed to see its shares shoot higher last week after international border reopening plans were announced.
• Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 10.8%. Short sellers have been targeting this ecommerce company due to its continued underperformance and concerns over its inventory management and higher marketing spend.
• Zip Co Ltd (ASX: Z1P) has seen its short interest rise week on week to 10.6%. Buy now pay later shares have fallen out of favour with investors over the last few months and short sellers have been benefiting greatly.
• Webjet Limited (ASX: WEB) has short interest of 10%, which is up week on week. This online travel agent’s shares are being targeted due to concerns over COVID disruptions. However, the border reopening sent its shares hurtling higher last week, much to the dismay of short sellers.
• Mesoblast limited (ASX: MSB) has short interest of 9.8%, which is up slightly week on week. This biotech has been targeted due to poor trial results, significant cash burn, and the loss of a major deal with Novartis.
• Polynovo Ltd (ASX: PNV) has seen its short interest rise to 8.8%. The high multiples that this medical device company’s shares trade on appear to have caught the eye of shorts. Particularly given its mixed performance.
• Betmakers Technology Group Ltd (ASX: BET) has 8.7% of its shares held short, which is up week on week again. The sky high multiples that this betting technology company’s shares trade on could be behind this.
• Magellan Financial Group Ltd (ASX: MFG) has entered the top ten with short interest of 8.3%. The poor performance of its funds, ongoing funds outflows, and the temporary exit of its CIO are weighing heavily on sentiment.
• Block Inc (ASX: SQ2) has entered the top ten with short interest of 7.8%. This payments company’s shares are under pressure amid valuation concerns and the prospect of rising rates.
• Temple & Webster Group Ltd (ASX: TPW) is back in the top ten with short interest of 7.7%. Concerns over higher marketing costs could be weighing on this online furniture retailer’s shares.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• Why has the Flight Centre (ASX:FLT) share price lifted off 16% in a week?
• Why these 2 All Ordinaries BNPL shares are plunging to 52-week lows
• Why the Webjet (ASX:WEB) share price is a seriously undervalued ASX share: expert
• 3 reasons why the Temple & Webster (ASX:TPW) share price is a buy after its plunge: experts
• Top brokers name 3 ASX shares to sell next week

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 Betmakers Technology Group Ltd, Block, Inc., Kogan.com ltd, POLYNOVO FPO, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, Temple & Webster Group Ltd, and Webjet Ltd. 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 mining shares are in the spotlight after a bullish commodity forecast from global broker Goldman Sachs.

Investment in exploration and production expansion has been lagging. In turn, this has crimped new supplies in an environment of rising demand as the world looks to spring back from the pandemic.

In many parts of the world, including for ASX mining shares here in Australia, you can add COVID-driven labour disruptions in the sector dragging on increased supplies.

Are ASX mining shares the place to be right now?

While the broker’s analysts didn’t home in on any specific shares, head of global commodity research at Goldman Sachs Jeffrey Currie noted that commodities can help investors hedge against inflation as well as rising geopolitical risks.

The prospect of a series of rising rates from the US Federal Reserve this year wasn’t going to impact demand for one to two years, he said.

According to Currie (quoted by the Australian Financial Review):

Given January’s CPI print, and the risks for rate hikes which will take 12-24 months to slow commodity demand, there has rarely been a better time to add commodities to a portfolio as a hedge against inflation, geopolitical risks and potentially hostile market environments.

Noting that China is pumping fresh stimulus into its economy and that the Europeans are only now tapping into their fiscal recovery fund, Currie added:

Not only are demand levels for all commodities now comfortably above pre-pandemic levels which is stressing supply, but the tailwind from synchronous stimulus is facing a resurgence…

Should European interest rates go positive this year as our economists believe, the bid for euros would further weaken the dollar creating an even greater tailwind for commodities.

If the already voracious global demand for commodities heats up further, it will also throw up some greater tailwinds for ASX mining shares.

3 ASX 200 miners

Investors keen on ASX mining shares have plenty to choose from in the Aussie markets.

We can’t cover even a tiny fraction in this article so we’ll have a brief look at 3 of the bigger players listed on the S&P/ASX 200 Index (ASX: XJO), which is down 4.5% so far in the New Year.

First up are iron ore giants Fortescue Metals Group Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO).

After collapsing to US$87 per tonne in mid-November from highs of some US$220 per tonne in mid-2021, iron ore has leapt back, currently trading for around US$120 per tonne.

This has helped propel the Rio Tinto share price to a 22% gain in 2022, while the Fortescue share price is up 14% year-to-date.

Next, we have ASX mining share Whitehaven Coal Ltd (ASX: WHC).

Just as crude oil prices have rocketed, so too has the price of coal. And that’s helped the Whitehaven Coal share price gain 13% in 2022 and 105% over the past 12 months.

ESG investors and ASX mining shares

While most ASX mining shares are working hard to improve their sustainability credentials, many ESG investors – both retail and institutional – aren’t buying into their stock.

This, Currie said, will only drive the commodity bull market to greater heights.

According to Currie (quoted by the AFR):

With warning lights flashing across commodity markets, it would be understandable to expect capital to be flowing toward commodities and commodity producers in response. Yet this is still not the case, both for hydrocarbon producers and key transition mineral producers alike…

This continued reticence in commodity investment remains at the heart of the structural side of our bull market thesis – the longer this wedge remains, the longer it takes for commodity supply to catch up to higher demand.

While not all ASX mining shares will benefit equally, if Goldman Sachs has this right the demand for their commodities should remain resilient for some time yet.

The post Are ASX mining shares the place to be right now? appeared first on The Motley Fool Australia.

More reading

• The iron ore price is rising: Time to jump on Rio Tinto shares?
• Could opening WA borders expose ASX 200 mining shares to production risks?
• Should you buy Fortescue (ASX:FMG) shares before the mining giant reports next week?
• Why IAG, Rio Tinto, Unibail, and Westpac shares are pushing higher
• Are ASX hydrogen shares in a ‘hot air’ bubble?

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small gain. At the time of writing, the benchmark index is up 0.25% to 7,235.3 points.

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

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The Bendigo and Adelaide Bank share price is up 4.5% to $9.68. Investors have been buying this regional bank’s shares following the release of its half year results. The regional bank reported an 8.5% increase in revenue to and an 18.7% lift in cash earnings to $260.7 million for the six months. The latter was ahead of expectations. This allowed the bank to increase its fully franked interim dividend by 12.8% to 26.5 cents per share.

Crown Resorts Ltd (ASX: CWN)

The Crown share price is up 2% to $12.65. This morning the casino and resorts operator revealed that it has accepted an $8.9 billion takeover offer from Blackstone. Crown has accepted an offer of $13.10 cash per share. This represents a premium of ~32% to its undisturbed share price on 18 November.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is up 5.5% to $51.75. This follows the announcement of a $250 million share buyback with its half year results. In addition, management revealed that the second half has started strongly with solid sales growth being recorded by its key JB Hi-Fi Australia and The Good Guys businesses.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is up 4.5% to $23.72. Investors have been buying this gold miner’s shares following increased demand for safe haven assets amid concerns over escalating tensions in Ukraine. It isn’t just Newcrest rising today. The S&P/ASX All Ordinaries Gold index is up 5% this afternoon.

The post Why Bendigo and Adelaide Bank, Crown, JB Hi-Fi, and Newcrest are pushing higher appeared first on The Motley Fool Australia.

More reading

• $250m buyback sends JB Hi-Fi (ASX:JBH) share price shooting higher
• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• Is Newcrest Mining (ASX:NCM) set to start a share buyback in 2022?
• Crown (ASX:CWN) share price higher after accepting $8.9bn takeover offer
• Bendigo Bank (ASX:BEN) share price lifts amid 32% jump in profits

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 owns and has recommended Bendigo and Adelaide Bank 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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The Flight Centre Travel Group (ASX: FLT) share price has had a better run lately than its ASX 200 travel share peers Qantas Airways Ltd (ASX: QAN) and Webjet Ltd (ASX: WEB).

The company’s share price has surged 16% since 4 February. The Qantas share price is up around 5% over the same period while Webjet has rocketed 14%.

Today, though, the travel companies are in descent. Flight Centre is down 2.06%, trading at $20.40 at the time of writing. Qantas is 2.22% lower while Webjet is 2.87% in the red.

Let’s look at why Flight Centre has taken off lately.

What lifted Flight Centre?

The Flight Centre share price was the top performer on the ASX 200 last week.

The company’s share price lifted on the back of the federal government announcing international borders will open on February 21.

Flight Centre Travel Group managing director Australia James Kavanagh described the reopening as “momentous” for small and big businesses, as quoted in international exhibition industry magazine Exhibition World.

It has been a long time coming but the critical part is once we open to the world, we stay open, and that will naturally inject real confidence into people wanting to travel.

There is no doubt visas, exemptions, and quarantine have all been a big hindrance to the corporate world – and although we expect some meetings and events to still exist in a virtual of hybrid manner – now is the time to get on planes to see colleagues, clients, and potential new customers.

Also last week, Flight Centre put out a media release announcing the appointment of Tom Walley as the new global manager of the company’s small and medium enterprises division. Walley said;

We have an ambitious target of welcoming $1 billion (USD) of new customers in the 2023 financial year globally and there are three things that will help us achieve this goal – our people, the great service they provide, and our investment in technology

However, as my Foolish colleague Tristan reported on Thursday, Macquarie has a hold rating on Flight Centre. The broker thinks 2023 will be the year that delivers better profitability.

Today, Flight Centre launched its first reconciliation action plan.

Kavanagh said Flight Centre hopes to increase education and employment in first nations communities. He said:

2022 represents a very significant milestone for us as we celebrate 40 years of doing business. It’s both a privilege and an honour to be able to establish our Reconciliation Action Plan goals during this milestone year for our company.

Flight Centre share price recap

The Flight Centre share price has surged around 44% in the past year. In the past week alone, the company’s shares have gained 16%.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 6% over the past year.

Flight Centre has a market capitalisation of about $4 billion based on today’s share price.

The post Why has the Flight Centre (ASX:FLT) share price lifted off 16% in a week? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Is the Flight Centre (ASX:FLT) share price potential recovery as big as it seems?
• Broker says buy Webjet (ASX:WEB) instead of Flight Centre shares
• The ASX 200 just hit 3-week highs. What’s next?
• Here are the top 10 ASX shares today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group 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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It’s been a rough ride for the Novonix Ltd (ASX: NVX) share price – it’s tumbled 39% over the last 30 days. That’s including today’s 9% slide.

At the time of writing, the Novonix share price is $5.92. That’s down from $9.74 this time last month.

Today’s plunge also sees the company’s stock taking out the crown for the worst performing share on the S&P/ASX 200 Info Tech Index (ASX: XIJ).

Not only that, but it’s also bringing up the rear on the S&P/ASX 200 Index (ASX: XJO). The index is currently up 0.3%.

Let’s take a look at the latest news from and of the battery technology giant.  

Is there still upside for the Novonix share price?

The last 30 days have potentially seen the Novonix share price coming back to earth after surging 313% over the second half of 2021.

Since the start of 2022, it has tumbled 43% despite the company releasing a number of seemingly positive updates to the ASX.

First, it announced that the wheels had started turning on its Nasdaq listing. The Novonix share price surged 10% on the announcement. It rang the bell on the infamous tech-heavy exchange early this month.

Additionally, the company shook on a supply agreement and investment in battery cell developer KORE Power and released its report on a jam-packed December quarter.

However, the busy start to 2022 wasn’t enough to get some brokers bullish on the Novonix share price’s future.

As The Motley Fool Australia reported earlier this month, Morgans has lowered its price target for the stock, saying “once any potential momentum stalls … the price will be vulnerable to pull backs”.

The broker’s new price target for Novonix was $6.97.

While that represented an 11% downside at the time of publication – when the Novonix share price was $7.87 – it currently signifies a 17% upside.

Though, the broker left room to be surprised. It said it’s wary of the stock’s often dramatic movements but admitted it could push higher than expectations.

“The share price exceeds the value of our base case [discounted cash flow] valuation but it has had a tendency to push higher on positive news,” Morgans said. “Should NVX secure a major customer like Samsung or Sanyo then the stock could push higher on positive sentiment.”

The post Down 39% in a month. Has the tide turned for Novonix (ASX:NVX) shares? appeared first on The Motley Fool Australia.

More reading

• Why Cettire, Novonix, Serko, and Zip shares are sinking today
• What this broker is saying about the Novonix (ASX:NVX) share price
• ASX 200 (ASX:XJO) midday update: Credit Corp impresses, Boral’s $3bn capital return
• Novonix (ASX:NVX) share price surges 5% on finalised US investment and supply agreement
• Novonix (ASX:NVX) share price lifts 4% on quarter of expansion

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.

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For a while now, Lynas Rare Earths Ltd (ASX: LYC) shares have been an eye-catcher on the ASX boards. Even before its most recent share price run, Lynas was a company that has long attracted attention due to its unique position as not just one of the few rare earths miners in Australia, but also the largest.

It was only a few years ago that one of the ASX’s largest constituents, Wesfarmers Ltd (ASX: WES), tried to buy up Lynas in full. It has been to the benefit of Lynas shareholders (and to the detriment of Wesfarmers investors) that that deal fell through.

So as we’ve briefly touched on, Lynas has been on an absolutely stellar share price run over the past two years. But how much money exactly has the Lynas share price made its investors? Let’s dig in.

How rich has Lynas made its investors?

Fittingly, the lowest share price Lynas has touched over the past few years was back in March 2020, at the height of the coronavirus-induced share market crash. At the time, Lynas got down to around $1.25 a share.

Today, it’s trading at $8.99 at the time of writing, having lost a nasty 3% thus far today.

That puts its gains at an approximate but very pleasing 620% since 27 March 2020.

So if an investor bought $10,000 worth of Lynas shares back then for $1.25 each, they would have picked up 8,000 shares for their efforts. Those 8,000 shares would be worth roughly $71,920 at today’s pricing. Pleasing stuff indeed, if any investor was actually lucky enough to make this trade.

But it could have been a lot better. Like many ASX shares, Lynas has taken a substantial haircut over the past month or two. We only have to go back less than a month to see the Lynas share price at a new record high of $11.39 a share, a good 20% off today’s pricing.

At that all-time high, those 8,000 Lynas shares would have been worth $91,120.

Needless to say, Lynas has been a very lucrative investment to have held in recent times. Especially over the past two years or so.

At the current Lynas Rare Earths share price, this ASX rare earths miner has a market capitalisation of $8.13 billion.

The post Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• 5 things to watch on the ASX 200 on Monday
• Is Vanguard MSCI Index International Shares ETF (ASX:VGS) an excellent investment for the long-term?
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers 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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The Audinate Group Ltd (ASX: AD8) share price is trading lower today following the release of its half year results.

In afternoon trade, the audio-visual media networking solution provider’s shares are down 2.5% to $7.54.

Audinate share price lower despite delivering strong revenue growth

• Revenue increased 31.6% over the prior corresponding period to $20.2 million (US$14.8 million)
• Gross margin of 75.6%
• EBITDA up 11% to $2 million
• Net loss after tax of $2.1 million
• Strong cash and term deposits balance of $60.3 million prior to completion of Silex acquisition in January

What happened during the half?

For the six months ended 31 December, Audinate overcame supply chain disruptions and chip shortages to deliver a 31.6% increase in revenue to $20.2 million or 33.3% in US dollars terms to US$14.8 million.

Management advised that this growth was driven primarily from its chips, cards and modules, which was supported by robust demand for software products. This helped offset a decline in revenue from design wins as it moved away from up-front license fees and adopted a subscription model to successfully drive more design wins.

Nevertheless, Audinate still secured 57 designs wins with OEMs during the period, with 16 of these design wins related to next generation Dante software products. The company also revealed that it has grown the number of OEM customers shipping Dante enabled products to 403 OEMs. This represents an increase of 12% over the prior corresponding period.

Management commentary

Audinate’s Co-Founder and CEO, Aidan Williams, was pleased with the half, particularly given the challenging operating conditions.

He commented: “The business performed strongly during the first half in a very challenging operating environment and delivered revenue growth exceeding 30%. Further supply chain tightness is expected in 2H22 but we are pleased to have received indicative additional commitments from chip suppliers. Consequently we now anticipate satisfying demand for our Brooklyn and Broadway products in the second half.”

Outlook

Management advised that second half revenue will be driven by chip availability for both Audinate and its OEM customers. At this stage, it expects USD revenue growth for FY 2022 overall, but not at historical growth rates.

Audinate advised that it is proactively managing the challenging operating environment through product redesign, sourcing of alternative parts, and passing through price increases. Positively, it expects to be able to continue to meet demand for most flagship products.

Once again, Audinate’s committed sales orders continue to grow to all-time highs, which it believes positions the business strongly for a future supply chain easing, fulfilment of orders, and associated revenue.

Though, it is also expecting its costs to increase in the near future as it grows its headcount. This reflects the Silex acquisition and the desire to support ongoing growth and drive development of video and cloud services. Audinate is targeting a headcount of 185 staff at the end of June, which will be up 37% from 135% at the end of FY 2021.

Mr Williams concluded: “The acquisition of the Silex video business is another exciting chapter for Audinate. With the establishment of the Cambridge (UK) video software team, the acquisition completes a significant transformation of our video capabilities over the last twelve months. Whilst supply chain disruption is likely to linger through CY22, we look to fulfilling increasing demand for our products and services. We also look forward to the release of future video and cloud products that complement our existing revenue streams.”

The post Audinate (ASX:AD8) share price lower despite stellar sales growth appeared first on The Motley Fool Australia.

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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 AUDINATEGL FPO. The Motley Fool Australia owns and has recommended AUDINATEGL FPO. 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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