Category: Stock Market

Key points

• The Essential Metals share price is up 16% this afternoon, trading at 47 cents
• The gain follows the release of the company’s quarterly report
• Within the report, the company outlined its exploration activities and strong cash position

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The Essential Metals Ltd (ASX: ESS) share price is surging on Friday after the company released its activities and cash flow report for the December quarter.

At the time of writing, shares in Essential Metals are swapping hands for 47 cents. That represents a 16.05% gain on the company’s previous close.

Essential Metals share price gains on strong financial position

• Last quarter, the company received assay results from the Dome North project
• It also began another drilling campaign at Dome North
• It had $9 million cash on hand at the end of the quarter
• Finally, it worked to divest a Canadian asset

Over the quarter just been, Essential Metals received assay results from a 5,934m reverse circulation drill program completed at the Dome North lithium project in Western Australia earlier last year, with the best results found at the Cade Deposit.

Additionally, another 13-hole diamond drill program began at the project in December.

Finally, the company completed a baseline environmental survey – part of its activities to prepare Dome North for development.

Also over the quarter, Essential Metals received $400,000 from Australian Nickel Company as a milestone payment in accordance with the Blair–Golden Ridge Nickel Farm-in/Joint Venture.

As of 31 December, the company had $8.99 million of cash in the bank and no debt. That’s enough to fund it for another 12 quarters of similar activities.

What else happened during the quarter?

The company also worked to sell its 51% interest in Canada’s Mavis Lake lithium project last quarter.

The asset was sold to Critical Resources Ltd (ASX: CRR). Though, the sale wasn’t finalised until after the quarter’s end.

It saw Essential Metals walk away with $750,000 in cash – 50% withheld for Canadian tax purposes – and 34 million Critical Resources shares calculated at 2.2 cents each.

Right now, the Critical Resources share price is around 10 cents.

The Essential Metals share price gained 8% after the company announced the divestment in mid-October.

What’s next?

The company is currently continuing the 13-hole diamond drill program at Dome North. That’s expected to be completed in mid-February.

Additionally, it recently began a 30-hole air-core drilling program to follow up on anomalism from the previous program at Dome North.

Essential Metals share price snapshot

This year has been particularly good to the Essential Metals share price.

It has gained a whopping 135% since the final close of 2021. It is also 176% higher than it was this time last year.

The post Here’s why the Essential Metals (ASX:ESS) share price is leaping 16% today appeared first on The Motley Fool Australia.

More reading

• 149% in a month: Essential Metals (ASX:ESS) share price glides higher on lithium update

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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Hipages Group Holdings Ltd (ASX: HPG)

According to a note out of Goldman Sachs, its analysts have retained their buy rating but trimmed their price target on this tradie marketplace provider’s shares to $4.60. This follows the release of Hipages’ second quarter update, which fell short of expectations due to the impact of the Omicron variant on its tradie base. While Goldman was disappointed with the quarter on quarter decline in subscription tradies, it doesn’t believe this represents any structural issue in the marketplace and its positive view is unchanged. The Hipages share price is trading at $3.02 this afternoon.

Life360 Inc (ASX: 360)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $16.50 price target on this app maker’s shares. This follows the release of a strong fourth quarter update which led to Life360 outperforming the broker’s expectations in FY 2022. Morgan Stanley appears confident its strong form can continue and sees the recent share price weakness as a buying opportunity. The Life360 share price is fetching $7.58 on Friday.

Premier Investments Limited (ASX: PMV)

Analysts at Macquarie have retained their outperform rating and lifted their price target on this retail conglomerate’s shares to $35.00. This follows the release of Premier Retail’s first half trade update which revealed solid earnings growth despite the loss of a significant number of trading days due to COVID-19. Macquarie notes that its strong online businesses and cost control have supported its growth and expects this trend to continue. The Premier Investments share price is trading at $28.67 this afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Top brokers name 3 ASX shares to sell today
• Why Beach, Jumbo, Premier Investments, and Western Areas are pushing higher
• 3 ASX small cap shares landing on an expert’s buy list
• Why Evolution, Cettire, Hipages, and Kogan shares are sinking

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Hipages Group Holdings Ltd. and Life360, Inc. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Premier Investments 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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Key points

• Bendigo shares have fallen in recent times. But can the dividend make up for it?
• It has a trailing grossed-up dividend yield of more than 8%.
• Analysts are expecting the bank to grow its dividend in each of the next few years

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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been falling over the last few weeks. It has dropped close to 10% since 18 January 2022.

Can the dividend yield make up for the falling share price?

How big is the dividend yield?

FY21 saw the business generate 85.6 cents of cash earnings per share (EPS), which was an increase of 43.4%. The board decided to pay a total fully franked dividend of 50 cents per share.

At the current Bendigo Bank share price, it has a grossed-up dividend yield of 8.3%.

That’s higher than quite a few other ASX banks including Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG).

The Bendigo and Adelaide Bank board is proud of the “continuing history of rewarding shareholders with a high yield and long-term returns”.

In deciding on that level of payout, Bendigo Bank said that ongoing stress testing continues to support the bank’s “strong balance sheet and capital position”.  

But that’s the past. What about the dividends for the upcoming results?

Upcoming dividends

Commsec numbers suggest the Bendigo and Adelaide Bank is going to pay a rising dividend in FY22, FY23 and FY24.

The FY22 dividend is expected to be $0.53, translating to a grossed-up dividend yield of 8.7%.

FY23’s annual dividend could be $0.54 per share. That’s a potential grossed-up dividend yield of 8.9%.

The FY24 dividend might be $0.565 per share, turning into a grossed-up dividend yield of 9.3%.

Is that enough to make up for the decline?

There are not many positive ratings on the regional bank at the moment. For example, Morgan Stanley rates the Bendigo Bank share price as a sell, though the price target is $9.50. The broker reckons that rising interest rates can help the banks beat the returns of the overall share market.

Plenty of other brokers currently rate the challenger bank as a ‘hold’ or ‘neutral’. Citi currently rates the Bendigo and Adelaide Bank as ‘neutral’ with a price target of $9.25.

It also notes the recent digital transformation announcement.

This is where the bank’s strategy is to shape the future of banking, by being customer-focused, achieving growth and making sure it has the offering to win new, young customers.

In FY22, the bank said that it was expecting above-system lending growth, driven by its consumer business and further advances in the small business and agribusiness sectors. But Bendigo Bank is also going to be focused on costs, improving productivity and preserving a strong and resilient balance sheet.

What is the Bendigo Bank share price valuation?

Using Commsec’s estimates, Bendigo Bank shares are valued at 11x FY22’s estimated earnings.

Based on Citi’s numbers, the regional bank is priced at 12x FY22’s estimated earnings.

The post Can the Bendigo Bank (ASX:BEN) 8% dividend yield make up for its share price correction? appeared first on The Motley Fool Australia.

More reading

• What’s happening to ASX bank shares today?
• The Bendigo Bank (ASX:BEN) dividend is smashing the big four right now
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• How the Bendigo Bank (ASX:BEN) share price went in 2021

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 owns and has recommended Bendigo and Adelaide Bank Limited. 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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Key points

• CBA shares are trailing the ASX 200 index today
• Tasmania tops the states and territories in economic performance
• CommBank the leading bank for Australian debt capital markets
• Stressed parents turning to BNPL for back-to-school items

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The Commonwealth Bank of Australia (ASX: CBA) share price is trailing the broader market rally today.

While the S&P/ASX 200 Index (ASX: XJO) is turbulently moving higher, currently up 2%, CBA shares are up a more muted 1.42% to $95.11 per share.

That’s the early afternoon price action today.

Below we look at what the big bank has been reporting this week.

Tasmania leads the charge

On Monday, CBA revealed that Tasmania once again came in as the best economic performer among the states and territories over the past quarter. That made for Tassie’s 8th consecutive title win in the CommSec State of the States report.

Craig James, chief economist at CBA’s wholly-owned affiliate CommSec, said that Tasmania could face stiff competition from the other states in the year ahead.

“Tasmania has held top position in the performance rankings – solely or jointly – for eight consecutive quarterly surveys,” he said. “While it is likely to remain on top in the short-term, much can change over 2022.”

CBA is Australia’s debt capital markets leader

Later in the week, CBA shares were in the spotlight when the bank reported on Bloomberg data showing it was “the leading bank for Australian debt capital markets in 2021″.

In calendar year 2021, CommBank raised $19.7 billion for its clients.

The bank was also the most active provider of syndicated loans in 2021, reporting it had supported 57 deals raising $15.5 billion of funding for its clients.

While all this was happening, the CBA share price was rising and finished the year up 23% for its shareholders.

Looking ahead, CBA’s managing director of Global Syndicate, Des Fennell was bullish on 2022:

We anticipate Australian public debt market issuance will grow in 2022, as more domestic financial institutions return to normalised issuance patterns, while the education and public finance sector continues to take advantage of historically low rates.

$2 billion back-to-school splash spurs BNPL intentions

Yesterday, CBA revealed that Aussie parents are looking at spending a combined $2 billion to get their kids set for the new school year.

The 9% year-on-year increase in expenditure works out at $435 for the average family.

And not everyone is planning to hand over cash on the day of purchase.

With 65% of parents saying they’ll have difficulty affording everything they need to buy, 58% are planning to break out the credit card or make use of buy now, pay later (BNPL) services.

This trend, CommBank reported, is helping drive demand for its own BNPL product, StepPay:

The popularity of buy now, pay later to manage expenses continues to grow, with over 150,000 customers and 1.5 million transactions on CBA’s own buy now, pay later product, StepPay, since its launch in August.

How has the CBA share price been performing this year?

CBA shares have broadly performed in line with the ASX 200 in the new year.

Since the opening bell on 4 January, the ASX 200 is down 8.1% while CBA shares have lost 7.3%.

Based on today’s share price, CBA pays a 3.7% dividend yield and this is also fully franked.

The post Own CBA (ASX:CBA) shares? Here’s what the big bank reported this week appeared first on The Motley Fool Australia.

More reading

• ASX share market on watch: Is the RBA going to increase interest rates in 2022?
• What is the CBA (ASX:CBA) dividend payout ratio sitting at?
• CBA reveals the Australian economy’s leading state amid COVID surge
• What’s happening to ASX bank shares today?
• Own CBA (ASX: CBA) shares? Here’s what’s happening with the big bank this week

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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Key Points

• Nitro shares retrace despite robust Q4 FY21 performance
• Key financial metrics increased by double-digits
• FY21 EBITDA expected to be at a loss, but an improvement from earlier guidance

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The Nitro Software Ltd (ASX: NTO) share price is on course to end the week deep in the red.

In mid-afternoon trade, the document productivity and eSigning company’s shares are down 4.34% to $1.765.

When factoring in the past week, Nitro shares have shed more than 20% in value.

What’s dragging the Nitro share price down today?

Investors have been selling down the Nitro share price following the release of the company’s cash flow report for Q4 FY21.

For the three months ending 31 December, Nitro reported revenue of US$50.7 million (A$72.01 million) excluding Connective, up 26% compared to FY20. This was at the top end of the upgraded guidance range provided in October of US$49 million to US$51 million.

FY21 revenue including Connective came to approximately US$50.9 million ($A72.29 million).

Annual Recurring Revenue (ARR) at the year’s end was at US$40.1 million (A$56.96 million) excluding Connective. This reflected a 41% increase from 31 December 2020 and is in line with the guidance range of US$39 million to US$42 million.

ARR at 31 December 2021 including Connective was US$46.2 million (A$65.65 million). Key customer wins and expansions in the quarter included Deutsche Bank, ICON, Eversheds Sutherland, Swiss Re and Ausenco.

Nitro’s transition to a Software-as-a-Service (SaaS) business model is continuing along, with subscription revenue in Q4 2021 representing 71% of total revenue. When measured against Q4 2020, this represents a 58% increase.

The company noted it maintains a strong financial position to pursue growth opportunities. At the end of the calendar year, cash and equivalents stood at US$48.2 million with no debt.

FY21 Outlook

Although the company signalled the last quarter of FY21 as a positive performance, it appears investors were expecting better results. This has led the Nitro share price to fall to July 2020 levels.

Nitro stated that operating earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to result in a loss of between US$7.5 million to US$8 million. The operating EBITDA guidance was upgraded given the strong numbers on revenue.

In late October, the company forecasted EBITDA to be at a loss of US$8 million to US$10 million.

Nitro is scheduled to release its FY21 audited results along with ARR, revenue and operating EBITDA guidance for FY22 on 24 February.

The post Here’s why the Nitro (ASX:NTO) share price is backtracking 6% today appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software 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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Key points

• Macquarie comes out with a list of downgrades today
• The 3 ASX shares are all concentrated in resources and mining
• The ASX 200 Resources Index has fallen 8% this week after collapsing on 20 January.

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The benchmark S&P/ASX 200 index (ASX: XJO) failed an attempted intraday snapback rally earlier this week after suffering extensive losses and is now down more than 7% for the month.

Meanwhile, as the selling impulse extends its reach throughout the markets, the S&P/ASX 200 Resources Index (XJR) also turned sharply last Thursday and is now 8% in the red for this week.

Amid the recent market calamity, investors are starting to unwind their exposure to growth and are budgeting less risk with their positioning.

That’s true as companies who lack robust fundamentals and balance sheet credentials can’t withstand a rates shock or economic downturn compared to their ‘healthy’ counterparts. As Warren Buffet said, “only when the tide goes out do you discover who’s been swimming naked”.

As such, the team at Macquarie just downgraded these three ASX shares. Let’s take a look.

Cooper Energy Ltd (ASX: COE)

Macquarie slashed its recommendation on Cooper Energy and now reckons the stock is set to underperform in 2022.

Analyst Mark Wiseman slashed the broker’s valuation on Cooper by 14% to 24 cents, which implies a 19% downside potential at the time of writing.

The downgrade comes after the company released its quarterly update for the three months ended 31 December 2021 yesterday.

In its report, Cooper recognised a “record year to date production sales volume, and revenue”, as YTD production is up 35% to 1.57MMboe and sales volume is up 67% to 2.02MMboe.

On this, revenue had climbed 96% to $95.4 million according to the earnings release. However, with respect to quarterly production, sales volume and revenue, the situation was in reverse.

“Total production down 6% to 0.76 MMboe, sales volume down 4% to 0.99 MMboe and revenue down 2% to $47.3 million; mainly impacted by planned downtime associated with the cut over from the Iona Gas Plant to the Athena Gas Plant” the company said.

In fact, compared to Q1 FY22, the company saw a net decrease in all items of sale volume and revenue quarter on quarter, whereas average realised prices increased marginally.

Hence, with this result in mind, Macquarie is less rosy on the outlook of Cooper rolling through the remainder of FY22. On last check, shares were down less than 1% on the day at 29.8 cents apiece.

OZ Minerals Ltd (ASX: OZL)

Macquarie downgraded OZ Minerals to neutral from outperform following the release of its quarterly results yesterday as well.

Despite achieving record FY revenue of $2.1 billion and meeting guidance for the 7th consecutive quarter, investors continued applying the selling pressure yesterday as shares finished in the red.

However, the OZ Minerals share price is stuck in a downward spiral that’s been in situ since 20 January, in lock-step with a selloff in the wider market.

For instance, the S&P/ASX 200 Resources Index (XJR) has collapsed over 7% in the past week whereas OZ has plunged 14%.

Macquarie isn’t so rosy on the outlook in 2022 and 2023 for the company and joined a slew of fellow brokers in downgrading OZ from a buy following the report.

Analyst Hayden Bairstow cut the recommendation in a note today and also cut the investment bank’s price target on the stock by 21% to $29.10 in doing so.

Curiously, Bloomberg Intelligence reports that “Investors who followed Bairstow’s recommendation received a 36% return [on OZ] in the past year, compared with a 35% return on the [OZ Minerals] shares”.

Mincor Resources NL (ASX:MCR) 

Another ASX share that Macquarie revised downwards today was Mincor Resources. This time Bairstow cut the broker’s recommendation from an outperform to neutral.

However, even with the revised sentiment, Bairstow actually increased Macquarie’s valuation on Mincor by 10% to $1.70 per share.

Each of these moves occurred following the release of Mincor’s quarterly activities report as well, to which the broker was hoping for more juice that’s worth the squeeze.

Macquarie’s valuation of Mincor now sits above the consensus price target of $1.60 per share, which is curious given the broker’s decision to change its rating to the downside. Although, notably, the theme for the broker’s downgrades today have been resource/mining based.

Indications of sector sentiment from Macquarie? It’s hard to say. Although, the broad sector is certainly facing challenges on the charts early in 2022.

Plus it’s not hard to see Macquarie’s stance in the near-term, given the market correction that’s been in place since January 1 at least.

Throughout its analysis of Mincor, Macquarie upgraded the company to a buy in December after starting coverage at neutral in August 2021. When the stock was rated to outperform, it gained circa 33%, whereas it climbed just 13% in the time it was rated a hold.

Time will tell if the broker’s thesis comes to fruition in any way. At the time of writing, the Mincor Resources share price has climbed more than 1% and is now fetching $1.62 apiece, after rallying more than 57% in the last 12 months.

The post Time to sell? Macquarie just downgraded these 3 ASX shares from buys appeared first on The Motley Fool Australia.

More reading

• The OZ Minerals (ASX:OZL) share price has dumped 11% this week. Is it a bargain?
• OZ Minerals (ASX:OZL) share price slips despite record $2 billion revenue
• 2 ASX shares to guide you out of this bloodbath: expert
• 2 top ASX shares to buy according to WAM
• Leading brokers name 3 ASX shares to sell 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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Key points

• Direct-current fast-charger manufacturer Tritium is now on the Nasdaq
• Shares in the company have slipped to the downside since listing
• Plans to construct a manufacturing facility in the United States are underway

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It has nearly been two weeks since electric vehicle fast-charging company Tritium listed on the Nasdaq.

The Brisbane startup-turned-DC-fast-charger icon has shared in the excitement of becoming a publicly listed company after merging with the Decarbonization Plus Acquisition Corporation II SPAC. As a result, Tritium now trades as Tritium DCFC Limited (NASDAQ: DCFC).

But what has the honeymoon period been like for Tritium?

Let’s take a closer look.

How’s Tritium been tracking?

After receiving approval from shareholders, Tritium joined forces with its SPAC and hit the Nasdaq decks on 14 January. Since then, the company’s shares have succumbed to some selling pressure on the market. As a result, the Tritium share price is down 12.3% to US$8.09 since listing.

Though, the disappointing start to its listed life was not enough to wipe the smile off the faces of Tritium’s team during the honorary ringing of the closing bell. This took place yesterday at the Nasdaq exchange in New York’s Times Square.

It may have felt like a dream, but it truly happened! Our CEO, Jane Hunter, rang the @Nasdaq closing bell in honor of Tritium's recent listing as $DCFC on the Nasdaq exchange, in New York's Times Square. Check out these photos from the big moment! #tritiumcharging #DCFC pic.twitter.com/XWxiBx0cY7

— Tritium (@TritiumCharging) January 26, 2022

https://platform.twitter.com/widgets.js

Commenting on this milestone moment, Tritium CEO Jane Hunter said:

The transport industry is being electrified, which means it is more important than ever for EV owners to have access to rapid, reliable charging infrastructure. We are proud to provide this networked infrastructure to our customers. As a public company, we expect to continue to expand our product suite and global footprint, which has already enabled more than 3.6 million high-power charging sessions across 41 countries — delivering over 55 GWh of energy.

I want to thank the Tritium team and Board of Directors, our investors, our partners at DCRN and our transaction advisors for their support and dedication through this process.

What’s next?

Not ones to rest on their laurels, the Tritium team is already looking ahead to the next achievement to tick off the list. This time around the company is seeking to set up a manufacturing facility in the United States before the end of September.

The selected site for the US facility is expected to be announced within the next few weeks. According to Tritium co-founder and executive director David Finn, the development will be essential to achieving significant production growth.

Finn said:

It will be massive for us. The capacity at our Brisbane facility is about 5000 pieces per annum, and the US facility will double that. It will be huge.

Following this, Tritium plans to look towards Europe to build upon its growth even further.

The post Here’s how Tritium (NASDAQ:DCFC) has been performing since listing in the US appeared first on The Motley Fool Australia.

More reading

• Firebrick Pharma (ASX:FRE) share price launches 165% following ASX IPO
• Analysts give their verdict on the Kogan (ASX:KGN) share price
• This world-famous fund manager is ‘buying the dip’. Here’s why
• Are Virgin Australia shares set to rejoin the ASX soon?
• Top 2 ASX 200 shares of the year so far revealed

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.

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Key points

• Firebrick Pharma has debuted on the ASX – launching 125% on open to trade at 45 cents
• The company is developing Nasodine Nasal Spray ­– designed to treat viruses such as the common cold
• During its IPO, the company offered shares for 20 cents apiece

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Virus-killing nasal spray developer, Firebrick Pharma Limited (ASX: FRE) saw its share price open 125% higher than its initial public offering’s (IPO’s) offer price upon its ASX float today.

The company’s stock hit the market at 12:30 pm AEDT on Friday and quickly surged to a high of 53.5 cents.

At the time of writing, the Firebrick Pharma share price is 53 cents, 165% higher than its offer price.

For context, Firebrick Pharma’s prospectus offered its shares for just 20 cents apiece.

Let’s take a look at what the company does and all the details of its ASX IPO.

But first, what is Firebrick Pharma?

Firebrick Pharma is a pharmaceutical development firm focused on its patented Nasodine – a nasal spray designed to help treat viruses such as the common cold.

The product has been under development for nearly 10 years. It uses povidone-iodine (0.5%) as the active ingredient – the same active ingredient found in Betadine.

A quick fun fact: The name Firebrick is the hexadecimal colour of povidone-iodine.

Nasodine has undergone 3 human trials and Firebrick expects one more phase 3 clinical trial will be enough to see it approved as a treatment for the common cold in adults. That (potential) final trial will go ahead this year.

If all goes to plan, the product will then be sent to regulators for approval in Australia, the United Kingdom, and Europe.

The nasal spray is also expected to be put to the test against COVID-19 in a phase 2 clinical trial in 2022. The company hopes that the trial will show the product can reduce shedding of the COVID-19 virus.

Its co-founders and leaders, Dr Stephen Goodall and Dr Peter Molloy have previously been involved in the leadership of multiple ASX-listed biopharmaceutical companies.

Goodall is Firebrick’s chief operating officer while Molloy is its chair.

Molloy also used to be responsible for the Betadine range in Australia, helped launch Betadine Sore Throat Gargle, and previously was CEO of Race Oncology Ltd (ASX: RAC).

What you need to know about Firebrick Pharma’s ASX IPO

The ASX has warmly welcomed Firebrick Pharma following its IPO.

Under its prospectus, it sold 35 million shares for 20 cents apiece, raising $7 million. That saw its IPO offer fully subscribed. The funds will go towards ongoing clinical trials, marketing, and operating costs.

At its offer price, the company expected to list with a market capitalisation of around $33.8 million.

However, at its opening price, it had a valuation of approximately $76 million.

The post Firebrick Pharma (ASX:FRE) share price launches 165% following ASX IPO appeared first on The Motley Fool Australia.

More reading

• Analysts give their verdict on the Kogan (ASX:KGN) share price
• This world-famous fund manager is ‘buying the dip’. Here’s why
• Are Virgin Australia shares set to rejoin the ASX soon?
• Top two ASX 200 shares of 2022 to date revealed
• Why the AnteoTech (ASX:ADO) share price is plummeting 23% on Friday

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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Key points

• Kogan share price hit a new 52-week low on Friday
• In response to its half year update, brokers have slashed their valuations
• Kogan fell well short of expectations again during the half

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The Kogan.com Ltd (ASX: KGN) share price has come under further pressure on Friday.

At one stage today, the ecommerce company’s shares dropped over 2% to a 52-week low of $6.02.

When the Kogan share price hit that level, it was down a whopping 72% from its 52-week high.

Why is the Kogan share price falling again?

Investors have been selling down the Kogan share price today after brokers gave their verdict on its half year trading update.

In case you missed it, Kogan disappointed the market again on Thursday when it revealed a big reduction in its earnings and a soft sales result which was boosted by an acquisition.

According to the release, Kogan achieved a 9% lift in first half gross sales during the first half. However, it is worth noting that the Kogan business reported a sales decline of 2.6% to $602.4 million, which was offset by the inclusion of the Mighty Ape business for six months compared to just one month a year earlier.

Mighty Ape reported gross sales of $95.6 million compared to its one-month contribution of $19.9 million in the first half of FY 2021.

But things got worse the further down the income statement you travelled as the true costs of generating those sales emerged.

Kogan reported a massive 58% decline in EBITDA to $21.7 million during the half. And once again, the six-month inclusion of the Mighty Ape business helped disguise the deterioration in the performance of the core Kogan brand.

Mighty Ape added $7.1 million to EBITDA for the six months, compared to $2.9 million for one month in the first half of FY 2021. Whereas the Kogan business reported a 70.1% reduction in EBITDA to $14.6 million.

Management blamed this on continuing supply chain interruptions, fluctuations in demand, higher logistic costs, and increased investment in marketing to grow its platform and scale the Kogan First loyalty program.

Broker reaction

The team at Credit Suisse wasn’t impressed with the half, with Kogan missing its earnings estimates by a significant margin. And while its analysts have retained their outperform rating, they have taken an axe to their price target and cut it by 34% to $9.16.

It was a similar story over at UBS. Its analysts were disappointed with its performance and appear concerned that higher operating costs could hold back its earnings recovery. Particularly given industry feedback pointing to higher digital marketing, warehousing, and logistic costs.

In light of this, the broker has retained its neutral rating and slashed its price target by 33% to $6.70.

The post Analysts give their verdict on the Kogan (ASX:KGN) share price 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 Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com 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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Key points

• Bill Ackman is one of the most famous fund managers in the world
• He runs Pershing Square Capital Management
• Now, it seems he is ‘buying the dip’ during this latest market correction

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As most of us would be aware, the past month or so has not been a fun one to have money in the markets. Even though the S&P/ASX 200 Index (ASX: XJO) is still in the green today, it remains down by roughly 9% so far in 2022. The US markets have faired even worse. The S&P 500 (SP: .INC) has lost 9.8% since the start of the year, while the Nasdaq-100 (NASDAQ: NDX) has seen its value drop by more than 15% over the same period.

So because all of these markets have dipped below 10% of their most recent all-time highs this week, we can now arbitrarily call this dip a ‘correction’ by the conventional investing playbook.

Market volatility and corrections can be an extremely stressful time for many investors, and fair enough. It’s never fun seeing the assets you’ve bought with your hard-earned cash get hammered so decisively, and over such a short span of time.

But some investors are taking advantage of this volatility to load up on shares at some cheap prices. One appears to be Bill Ackman. Ackman is a US-based fund manager who heads up Pershing Square Capital Management. Now a billionaire, Ackman is also one of the most famous fund managers in the world. So it goes without saying that this is an investor that might be worth paying attention to, especially in these uncertain times on the markets.

Top fundie Ackman ‘buys the dip’ with Netflix

Well, it appears Ackman is ‘buying the dip’ as it were. According to reporting in the Australian Financial Review (AFR) this week, Ackman has seized on the huge drop in the Netflix Inc (NASDAQ: NFLX) share price we’ve recently seen. Between 20 and 26 January, Netflix shares lost around 30% of their value. That put the company at pretty much 50% off its all-time high that we saw only back in November. This move seemed to have been sparked by Netflix’s most recent quarterly results, which detailed a slowdown in new subscriber growth for the company.

But according to the AFR report, Ackman’s Pershing Square has taken full advantage of this dip. The firm is now reportedly a top-20 shareholder of Netflix, which has a market capitalisation of US$171.29 billion.

Here’s why Ackman said he swooped:

The opportunity to acquire Netflix at an attractive valuation emerged when investors reacted negatively to the recent quarter’s subscriber growth, and management’s short-term guidance… We are all-in on streaming.

So that’s how one top investor is handling the volatility we have seen recently – by picking up large chunks of a favourite investment. Something to consider if we see things stay choppy for a while!

The post This world-famous fund manager is ‘buying the dip’. Here’s why appeared first on The Motley Fool Australia.

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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 has recommended Netflix. 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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