Category: Stock Market

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is all over the place in early trade this morning after the company announced a significant update.

The biotechnology company’s shares opened higher today, peaking at $8.15, before plunging to a low $7.70. At the time of writing, its shares are hovering around their previous closing price of $7.79.

Let’s take a look at what might be impacting the Telix share price today.

What did Telix announce?

In today’s announcement, Telix advised it has received the tick of approval from the US Food and Drug Administration (FDA) for its lead product, Illuccix.

The company has developed Illuccix for the diagnostic imaging of men with prostate cancer. It is the first commercially available product in the United States that provides access to what is known as gallium-68 PSMA-PET imaging.

Telix’s prostate cancer diagnostic tool has been gaining momentum for investors in recent months.

The tool will be used on prostate cancer patients at risk of metastasis and those who have a biochemical recurrence.

Tulane Cancer Centre medical director Dr Oliver Sartor was full of praise for the imaging tool.

This product offers a level of flexibility and accessibility to healthcare professionals we really haven’t seen before in this class of products, and may help us provide better patient experiences as a result.

Telix already has approval from the Therapeutic Good Administration for Illuccix in Australia. And the company is working on market authorisation in Europe and Canada.

Management comment

Commenting on the announcement, Telix CEO and managing director Dr Christian Behrenbruch said:

This heralds a new era of patient and physician access to gallium-based PSMA-PET imaging and marks an important new stage for Telix as we bring our first commercial product to market in the United States.

Improved imaging can provide physicians with the insights to determine the most appropriate treatment pathway and give patients in the US access to a specific and sensitive imaging tool for the detection of prostate cancer throughout the body.

Telix share price snap shot

The Telix share price has blasted ahead by more than 102% in the past 12 months. The company’s shares have also shot up 10.5% in the past month.

The biopharmaceutical company has a market capitalisation of around $2.3 billion based on its current share price.

The post What’s with the Telix (ASX:TLX) share price yo-yo today? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX biotech shares in 2022?
• Why Grange, Iluka, Perpetual, and Telix shares are rising today
• Here’s why the Telix (ASX:TLX) share price is falling today
• Standouts: 3 ASX biotech shares that outperformed in November
• Telix (ASX:TLX) share price lifts 7% on new distribution agreement

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

from The Motley Fool Australia https://ift.tt/3sop1tw

It hasn’t been an all too merry December for the Novonix Ltd (ASX: NVX) share price this year. Shares in the battery materials and technology company have sunk around 25% in value since the beginning of the month.

In contrast, the Novonix share price rallied ~12.5% in December last year. Since then, the company’s shares have gone on to be the best performing of the entire S&P/ASX 200 Index (ASX: XJO) in the last year — rising more than 750% in the past 12 months. However, it appears the heat has recently died off on this red hot stock.

Let’s take a look at what might be hampering this electrifying company in December.

Valuations pulled into question on Novonix share price

After hitting an all-time high of $12.47 on 2 December 2021, the Novonix share price violently tumbled 27% the following day. Perhaps the most unsettling characteristic of this price decline was that it occurred without any announcement from the company.

The reversal in the battery testing and anode material developer followed an article in The Australian Financial Review a day earlier. The article highlighted the disparity between the market capitalisation and revenue of many ‘green’ investment plays.

In the case of Novonix, it held a valuation of around $6 billion on revenues of $5.3 million prior to its fall. This reflected a price-to-sales (P/S) ratio of ~1,132 times. For comparison, another ASX-listed company developing green technologies, Calix Ltd (ASX: CXL), currently trades on a P/S ratio of approximately 50 times.

As we have covered previously, the publication noted there seemed to be “dozens, or perhaps hundreds” of lithium or green-orientated companies that will be driven more by sentiment than financials over the next year.

Since the fall on 3 December, the Novonix share price has recovered around 10%. However, the company’s shares are still a significant 39% away from their 52-week high.

Board members increase holdings

The latest news from Novonix, published to the ASX, involves two “change of director’s interest” notices. According to the notices, executive director Robert Natter and non-executive chair Anthony Bellas exercised their performance rights to acquire more Novonix shares last week.

Furthermore, both Natter and Bellas acquired 200,000 Novonix shares following the exercising of their performance rights. At the current Novonix share price, that equates to $1.806 million worth of shares each.

Finally, the company’s shares remain up 642% year-to-date. At the time of writing, Novonix is trading at $9.02 per share.

The post The Novonix share price has tumbled 25% so far in December. What’s going wrong? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Novonix (ASX:NVX) share price shrugs off this morning’s gains to plunge 4% lower
• Is the bubble bursting? Novonix (ASX:NVX) share price plunges 27%
• Novonix (ASX:NVX) share price combats today’s selloff to remain up 44% in a month. Here’s why
• These were the 5 best performing ASX shares in November

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

from The Motley Fool Australia https://ift.tt/3miTfum

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

In 12 days, the curtain will close on 2021 and cryptocurrency investors will likely be uncorking the champagne following another banner year. Amid volatile trading, the aggregate value of digital currencies has risen by 185% year-to-date, through late evening, Dec. 16.

Without question, the “Big Two” — Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) — have played a significant role in pushing the total market value of cryptocurrencies higher. This dynamic duo makes up 62% of the crypto market’s $2.2 trillion value.

However, 2021 has also been a year where cryptocurrencies with clear-cut competitive advantages shone bright. When I say “competitive advantages,” I’m referring to blockchain projects that demonstrate a competitive edge over the other 15,700-plus listed cryptocurrencies. Differentiation is absolutely imperative for digital currencies to stand out in an increasingly crowded space.

The crypto space is full of pretenders

Unfortunately, there are also plenty of pretenders. Two good examples being the ultra-popular dog-themed coins, Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE).

Shiba Inu and Dogecoin are two of the most-searched digital currencies in the U.S., and they arguably generate the greatest amount of social media buzz. That’s because these two coins have delivered life-altering returns, with SHIB tokens up more than 45,000,000% this year and Dogecoin higher by a more “modest” 3,400%.

It also hasn’t hurt that both payment coins have landed major merchants in 2021. Movie theater chain AMC Entertainment and online retailer Newegg Commerce plan to accept SHIB, whereas electric-vehicle manufacturer Tesla Motors will accept DOGE for select merchandise.

Unfortunately, the ability to generate social media buzz and “grow the community,” as crypto enthusiasts like to say, has no bearing on a project’s real-world utility or future. Neither Shiba Inu nor Dogecoin offers anything that resembles a competitive edge or true differentiation.

Shiba Inu is nothing more than an ERC-20 token built on the Ethereum blockchain. It’s subject to the same high transaction fees and processing lag that can occasionally plague the ultra-popular network. Meanwhile, Dogecoin’s transaction fees are markedly higher than a number of other popular payment coins, and its network isn’t capable of handling all that many transactions per second.

Shiba Inu and Dogecoin are what look to be fleeting investment opportunities in the crypto space.

These digital currencies offer true competitive advantages

By comparison, a small handful of blockchain projects stand out as offering true competitive advantages, and therefore genuine staying power over the long term. Here are three perfect examples.

Avalanche

The first digital currency that offers clear-cut advantages over the vast majority of the crypto landscape is smart contract-based blockchain network Avalanche (CRYPTO: AVAX). Smart contracts help to verify, facilitate, and enforce the negotiation of a contract between two parties.

Avalanche stands out for the scalability, speed, and compatibility of its blockchain network.

In terms of scale, Avalanche’s development team notes the network is able to handle more than 4,500 transactions per second (TPS). To put this figure into some perspective, payment processor Visa claims to handle up to 24,000 TPS. Comparatively, Bitcoin (before its Taproot upgrade) and Ethereum are only able to handle a respective 7 TPS and 13 TPS.

Avalanche is quick, too, with a block finality of less than two seconds. This is a fancy way of saying that transactions are completed (i.e., validated as true and settled) in less than two seconds. This compares to Ethereum, which takes around six minutes for block finality, and Bitcoin, which has a block finality of around 60 minutes.

But the most exciting aspect of Avalanche just might be that the Ethereum Virtual Machine is already operating on its blockchain. Instead of decentralized application (dApp) developers dealing with high transaction fees and network congestion with Ethereum, they can move their projects to Avalanche and enjoy lower costs and improved network efficiency. This is what a competitive advantage looks like.

Nano

A small number of payment network-oriented coins offer clear-cut competitive advantages as well. One such example is under-the-radar token Nano (CRYPTO: NANO).

The three aspects that allow Nano to stand head and shoulders above most financially focused networks are its scalability, speed, and cost.

The first thing prospective investors will notice about Nano is it’s not a traditional blockchain network. Instead, it’s what’s known as a block-lattice blockchain. With the block-lattice, every user has their own blockchain that they’re free to add to. Not having to compete with other users, or gain approval from anyone other than the sender and receiver of payment, allows for the network to be scaled quickly without compromising its effectiveness.

Nano is also a lightning-fast network. According to its development team, it can complete transactions in less than one second. Considering that it takes cross-border payment with existing payment infrastructure up to a week to validate and settle transactions, Nano being able to complete financial payments in less than one second is astounding.

The third differentiating factor for Nano is its cost… or should I say lack thereof. Nano’s consensus mechanism, known as Open Representative Voting, ensures that transactions are fee-less on the network.

Algorand

A third cryptocurrency that offers clear-cut competitive advantages is Algorand (CRYPTO: ALGO).

As with the other digital currencies above, there are three identifiable ways Algorand’s network stands out from the growing sea of blockchain projects.

To begin with, Algorand’s blockchain consensus mechanism is unique and a true improvement over traditional proof of stake. Algorand utilizes what it calls pure proof of stake, or PPoS. With PPoS, small groups of ALGO holders are randomly and secretly chosen to propose blocks and vote on proposals. The advantage of PPoS is it virtually eliminates the likelihood that a small number of actors would sabotage or disrupt the network.

A second benefit of the Algorand network is its speed. Developers somewhat regularly update the key performance figures for the network on the project’s website. As of Dec. 16, Algorand was capable of 1,162 TPS, but more importantly had a block finality of just 4.36 seconds.  This blows the door off existing financial payment settlement times.

And third, Algorand is a leader in enterprise blockchain interoperability. With so many unique blockchain projects under development, many risk not working well, or at all, with one another. Algorand has based its network on attempting to bridge those gaps for the business world. This makes Algorand a good bet to offer real-world utility. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 cryptocurrencies with clear-cut competitive advantages appeared first on The Motley Fool Australia.

More reading

• Why the 4DS Memory (ASX:4DS) share price is charging 8% higher today
• Reshuffle: Why is the Rio Tinto (ASX:RIO) share price sliding today?
• St Barbara (ASX:SBM) share price tumbles after announcing Bardoc Gold acquisition
• Broker says NAB (ASX:NAB) share price offers 12% upside plus dividends
• Westpac (ASX:WBC) share price falls despite asset sale announcement

Sean Williams has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin, Ethereum, Tesla, and Visa. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3Efjace

The 4DS Memory Ltd (ASX: 4DS) share price is pushing into positive territory on Monday. This comes after the company announced an update to its recent Share Purchase Plan (SSP) offer.

In mid-morning trade, the memory storage company’s shares are up 8% to 5.4 cents.

What did 4DS Memory announce to the ASX?

According to its release, 4DS Memory advised it has successfully completed its SSP following “very strong support” from shareholders.

The company received a large number of applications, totalling around $5.934 million. This represents significant interest given the company’s target of $2.5 million.

As a result, the board has decided to increase its SPP offer size to $3.5 million and scale back applications.

Eligible investors who applied for the minimum $2,000 amount will be unaffected by the scale back. However, those who applied for more will be subject to a 46.4643% reduction on their applications. This is to achieve the revised SPP target ($3.5 million).

The terms offered were the same as the previous $2.5 million placement that saw domestic and international institutions take part.

The total proceeds of $6 million will be used to progress the development of 4DS’ Interface Switching ReRAM technology. In addition, the remaining funds will be allocated towards the maintenance of intellectual property and general working capital.

4DS Memory expects the new shares to be issued and available for trading from tomorrow. Refunds will be credited to shareholder accounts or by cheque, also by tomorrow.

4DS Memory share price summary

During the past 12 months, the 4DS Memory share price has lost about 55%, with year-to-date down almost 60%. The company’s shares reached an all-time high of 28 cents in January 2021.

On valuation grounds, 4DS Memory presides a market capitalisation of about $71.46 million, with 1.37 billion shares outstanding.

The post Why the 4DS Memory (ASX:4DS) share price is charging 8% higher today appeared first on The Motley Fool Australia.

More reading

• The 4DS Memory (ASX:4DS) share price is plummeting 11% today. Here’s why
• The 4DS Memory (ASX:4DS) share price is halted. Here’s what you need to know

Motley Fool contributor Aaron Teboneras owns 4DSMEMORY FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3skZfqe

Shares in ASX resources giant Rio Tinto Limited (ASX: RIO) are on the move today and are now trading less than 1% down at $97.58.

Whilst there’s been no price-sensitive updates from Rio today, it did announce the successor of its current chair, Simon Thompson.

Effective 5 May 2022, Thompson will step down as Rio’s non-executive chair after a tenure of 4 years, having first joined the board back in 2014.

Who is set to be Rio’s new chair?

Following Thompson’s departure, the board has elected Dominic Barton to succeed as the company’s new chair. Barton will join the board in April and then step into the role from May.

Rio says that Barton, a Ugandan-born Canadian, has spent over 30 years at McKinsey & Company, including nine as the Global Managing Partner and six as Asia Chairman. Most recently, he has been Canada’s Ambassador to
China since 2019.

Rio says he brings a “wealth of global business experince having advised clients in a range of industries, including banking, consumer goods, high tech and industrials, as well as a deep insight of geopolitics, corporate sustainability and governance”.

Barton has previous experience as a Chair of Teck Resources, a non-executive director at Singtel Group and a non-executive director at Investor AB. He has held various public sector leadership positions, including Chair of Canada’s Advisory Council for Economic Growth and Chair of the International Advisory Committee to the President of South Korea on National Future and Vision.

As such, the release notes that Barton’s “business acumen and public sector insights position him to provide critical guidance and oversight to Rio Tinto’s leadership team during a pivotal time for the company”.

Speaking on the announcement, Barton said that “it is a great honour to succeed Simon as Chair of Rio Tinto. Returning to the private sector, I am excited to join a company with world-class people and assets as it navigates a shifting competitive landscape and seeks to emerge as a leader in the climate transition”.

The search for the new Chair was jointly led by senior Rio authorities’ Sam Laidlaw and Simon McKeon. The process sought candidates with the attributes, experience and skills that shareholders expected in the new chair.

These included proven experience of managing highly complex, cross-border relationships with multiple stakeholders; a strong track record of working in Asia and emerging markets; a commitment to the highest ESG standards; and a proven ability to lead a board and act as a mentor to the executive team, per the release.

Management commentary

Speaking on the announcement, Jakob Stausholm, Rio Tinto Chief Executive, said:

I am delighted with the choice of Dominic, who I believe brings exactly the skills and experiences that we in Rio Tinto need. I am truly looking forward to working with Dominic in our effort to continue to strengthen Rio Tinto, in particular drawing on his wealth of experience across Asia in both a business and diplomatic capacity. I would like to thank Simon for his dedication to Rio Tinto and the support and counsel he has provided, and continues to provide, to me during a period of transformative change.

Rio Tinto shares have battled this year and are down over 16.5% in the last 12 months after falling 14% this year to date. In the past month, they have reversed course and are up over 8% in that time.

The post Reshuffle: Why is the Rio Tinto (ASX:RIO) share price sliding today? appeared first on The Motley Fool Australia.

More reading

• Analysts say these ASX shares are buys
• Rio Tinto (ASX:RIO) share price lifts despite lithium project plans suspended following protests
• Rio Tinto (ASX:RIO) share price climbs amid $3.2 billion Mongolia ‘reset’
• 2 ASX shares with big dividend yields rated as buys
• Analysts tip Rio Tinto (ASX:RIO) share price to shoot higher

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

from The Motley Fool Australia https://ift.tt/3skRLDC

In morning trade, the National Australia Bank Ltd (ASX: NAB) share price is trading lower.

At the time of writing, the banking giant’s shares are down approximately 1% to $28.59.

Is the NAB share price in the buy zone?

One leading broker that is likely to see the NAB share price weakness today as a buying opportunity is Bell Potter.

According to a note, the broker has retained its buy rating and lifted its price target on the bank’s shares to $32.00.

Based on the current NAB share price, this implies potential upside of 12% for investors over the next 12 months.

And if you include the fully franked 4.4% dividend yield Bell Potter expects in FY 2022, the total return increases to ~16.5%.

What did the broker say?

Bell Potter notes that NAB held its annual general meeting last week. While the broker acknowledges that there are challenges ahead, it remains positive on its overall outlook and has increased its earnings forecasts to reflect this.

The broker is a fan of its business banking segment, which continues to perform well, and has lifted supported a lift in its price target for the NAB share price.

Bell Potter explained: “Our FY22 and FY23 forecast earnings are slightly increased by 1%, all else being equal. We have also slightly increased NAB’s valuation by around 3% and this is mainly due to better premiums ahead in Business & Private Banking (FY22 PE 15.5x), Personal Banking (FY22 PE 14.0x) and Corporate & Institutional Banking (FY22 PE 15.0x). Based also on a PB of now 1.6x overall, we have increased NAB’s valuation and price target by 3% to $32.00 (previously $31.00). The Buy rating is unchanged.”

The post Broker says NAB (ASX:NAB) share price offers 12% upside plus dividends appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Is the NAB (ASX:NAB) share price great value? Goldman thinks it is
• Sustainable change? NAB (ASX:NAB) share price spikes after AGM today
• 5 things to watch on the ASX 200 on Friday
• Why ASX 200 shares could add ~$70bn during the Santa Rally

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.

from The Motley Fool Australia https://ift.tt/3yJDv8I

The St Barbara Ltd (ASX: SBM) share price has started the week deep in the red.

In morning trade, the gold miner’s shares are down 6% to $1.38.

Why is the St Barbara share price sinking on Monday?

As well as being weighed down by a spot of weakness in the gold sector, the St Barbara share price has come under pressure after announcing an acquisition.

According to the release, the company has entered into a binding scheme implementation deed under which it will acquire Bardoc Gold Limited (ASX: BDC). This follows the successful completion of a strategic review of the Bardoc Gold Project initiated by Bardoc in September 2021.

The release explains that St Barbara has offered 0.3604 new St Barbara shares for each Bardoc share. Based on the St Barbara share price at the close of play on Friday, this values Bardoc at approximately $157 million and each Bardoc share at 53 cents.

This represents a 29.2% premium to the closing price of Bardoc shares on 17 December. Judging by the St Barbara share price performance, the market may believe St Barbara is paying too much to acquire Bardoc.

Bardoc also notes that it will be looking at spinning out its Woodie Manganese Project in Western Australia into a new separate vehicle, creating additional value for Bardoc shareholders.

Leonora Province expansion

St Barbara’s Managing Director and CEO, Craig Jetson, notes that the acquisition allows the company to expand its footprint in the Leonora Province.

He said: “St Barbara has been focused on expanding our footprint within the Leonora Province to fill the mill by growing our deposits, through acquisitions and exploration. Acquiring Bardoc Gold unlocks access to extensive land packages near our Leonora Operations.”

“The location of the Bardoc Gold Project, situated near the rail line and highway to the south of Leonora, brings the Bardoc ore bodies within economic haulage range of our Leonora processing plant. Combined with our existing regional opportunities such as Tower Hill and Harbour Lights, the acquisition of Bardoc facilitates the accelerated delivery of a multi-decade province of satellite mines feeding the Leonora processing plant. This provides St Barbara with significant operating flexibility and value as part of the Leonora Province Plan,” he concluded.

The post St Barbara (ASX:SBM) share price tumbles after announcing Bardoc Gold acquisition appeared first on The Motley Fool Australia.

More reading

• Why Alkane, De Grey, Nufarm, and St Barbara shares are pushing higher
• ASX 200 (ASX:XJO) midday update: BNPL shares sold off, Corporate Travel returns
• 5 things to watch on the ASX 200 on Friday
• These were the best performing ASX 200 shares last week
• 5 things to watch on the ASX 200 on Friday

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.

from The Motley Fool Australia https://ift.tt/3FcBmol

The Westpac Banking Corp (ASX: WBC) share price is under pressure on Monday despite the release of a positive announcement.

At the time of writing, the banking giant’s shares are down 0.5% to $20.91.

This means the Westpac share price is now down almost 19% in the space of two months.

Why is the Westpac share price falling?

The weakness in the Westpac share price today appears to have been driven by events on Wall Street on Friday night.

A number of major banks fell heavily following a very poor night of trade on the Dow Jones and S&P 500 indices.

This has led to Westpac and the rest of the big four banks starting the week in the red today.

What did Westpac announce?

As mentioned at the top, not even a positive announcement has been able to stop the Westpac share price from sliding today.

According to the announcement, Westpac has completed the sale of its wholesale dealer loan book of approximately $1 billion in receivables to Angle Auto Finance.

Management notes that this is the key milestone in its plan to sell its dealer finance and novated leasing businesses to Angle Auto Finance. It also advised that the transition of Westpac’s retail, wholesale dealer and introducer networks to Angle Auto Finance is underway and is expected to complete by the end of March 2022.

The transaction is expected to add 6 basis points to Westpac’s Common Equity Tier 1 capital ratio and generate an accounting gain on sale.

Westpac’s Group Chief Executive, Specialist Businesses, Jason Yetton, notes that the sale will simplify the bank’s operations while supporting the Auto Finance industry.

He said: “Westpac is confident that Angle will provide a high level of support for dealers and customers and is committed to investing and growing the business to help more Australians get behind the wheel.”

The post Westpac (ASX:WBC) share price falls despite asset sale announcement appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Is it a buy? Here’s what Macquarie is saying about the Westpac (ASX:WBC) share price
• 2 high yield ASX 200 dividend shares to buy
• Why ASX 200 shares could add ~$70bn during the Santa Rally
• 2 blue chip ASX 200 shares named as buys in December

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3FgVwNW

The Magellan Financial Group Ltd (ASX: MFG) share price has returned from its trading halt with a thud.

In morning trade, the fund manager’s shares are down a disappointing 23% to a multi-year low of $22.46.

This means the Magellan share price is now down a whopping 58% since the start of 2021.

Why is the Magellan share price sinking again?

Investors have been selling down the Magellan share price this morning after it confirmed the loss of a major contract.

According to the release, Magellan has been notified by UK-based multinational wealth management business St James’s Place that it has terminated its mandate with the fund manager.

The release notes that St James’s Place’s mandate was a separate account and not an investment in any of Magellan’s retail global funds.

However, it represents approximately 12% of the company’s current annual revenues. As a result, the termination of the mandate at this point in the financial year is anticipated to have approximately a 6% impact on the revenues for FY 2022. Though, the timing also means the impact on the company’s half year results will be immaterial. No details have been provided in respect to the impact on its earnings in FY 2022.

Magellan’s announcement, which was lacking in detail, concluded by thanking St James’s Place for its partnership and support over many years.

A difficult period

Today’s news caps off a very difficult period for the Magellan share price.

Earlier this month the company announced the sudden and surprise exit of its Chief Executive Officer, Brett Cairns.

Once again, the announcement lacked details, advising that Mr Cairns was leaving for personal reasons. This sparked speculation of a major fall out in the boardroom.

And with Magellan recording significant fund outflows this year and its flagship fund underperforming its benchmarks materially, the company is arguably facing the most difficult period in its existence.

The post Magellan (ASX:MFG) share price crashes 23% after losing major contract appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• The Magellan (ASX:MFG) share price just got halted. What’s going on?
• What is the outlook for the Magellan (ASX:MFG) share price in 2022?
• Move over Magellan (ASX:MFG). This global equities manager is gunning for pole position
• The Magellan (ASX:MFG) share price has had a shocker this year. Could this help reverse the slide in 2022?

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.

from The Motley Fool Australia https://ift.tt/3J45fJJ

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There’s a right way and a wrong way to handle stock market crashes. Getting the next one wrong might permanently reduce your investment returns. Avoid these three common mistakes if you want to navigate the market cycle like a pro.

1. You shouldn’t panic

It’s nearly impossible to remove emotion from your financial plan. Who could be completely dispassionate when it comes to their kids’ college funds or their retirement nest egg? You’ve spent years diligently saving and investing for growth, of course you’re going to freak out a bit if your assets suddenly tank in value.

However, you have to resist the instinct to panic if you want the best long-term investment outcomes. That’s easier said than done, but consider historical market dynamics for some valuable perspective. Volatility is a natural part of equity investing, and market crashes happen. If you’re in the market for the long haul, bear markets are unavoidable. Don’t blame yourself or your advisor when an event occurs that we should recognize as inevitable.

Recognize this fact ahead of time, and build your financial plan with this knowledge. When the market is down, remind yourself of this, and look forward to new opportunities that are around the corner.

2. You shouldn’t sell your stocks

This one is a lot easier once you’ve mastered the “don’t panic” approach. Selling your stocks in the midst of a market crash might be the worst thing you can do. It’s the exact opposite of the buy-low,-sell-high cliché.

You can check the value of your portfolio any given day, but those gains are unrealized until the positions are closed. Open positions are like chips still on the table in a casino — you’re not really a winner until you cash out and leave the building. Obviously, it feels good when your accounts are up, but you have to sell your stocks in exchange for cash in order to purchase something else.

Selling your stocks at a market bottom locks in your losses. Even worse, if you get rid of your stocks and fail to buy back in, you’ll miss out on some of the growth when the market inevitably recovers.

The key is understanding your time horizon and personal risk tolerance. If you’re still 20 to 30 years away from retirement, your IRA or 401(k)’s exact balance today isn’t exactly relevant. You’ll go through a few more market cycles before you start making withdrawals. Since you have time to wait for another market recovery, you should prioritize long-term growth.

On the other hand, you shouldn’t expose your investments to volatility if you need to liquidate them soon. Retirees, for example, might need to sell their stocks for cash in the next few years. They should build a more balanced asset portfolio to complement Social Security income. Adding bonds or cash will reduce volatility and limit losses. Don’t put yourself in a position where you’re forced to sell during a crash. Moreover, you’ll have extra cash on hand to purchase stocks at lower valuations.

3. You shouldn’t be scared of growth stocks

This takes the “don’t sell” approach a step further. Market crashes are actually the best times to focus even more on growth, but some scary stock charts will probably cause some trepidation.

Growth stocks take a pounding during bear markets, so they’ll probably have much uglier returns relative to value stocks and the market in general. History can be a valuable guide, but investment returns are built on future results. The stocks that drop the hardest in market crashes tend to be the ones that perform the best in subsequent bull markets.

This becomes clear when we look at the Vanguard Growth ETF‘s (NYSEMKT: VUG) performance relative to the Vanguard Value ETF (NYSEMKT: VTV) over the last two major collapse-recovery cycles.

Data by YCharts.

The merits of each stock play an important role in returns, but the trend applies, all other things being equal. This isn’t to imply that you should be drastically changing your portfolio allocation. Overall, you should come up with a target allocation based on your personal goals and risk tolerance. However, shifts in valuation change the risk/reward profile of stocks over time. When the market crashes, growth stocks will look more favorable, and it’s not a bad idea to modestly shift your portfolio to the most aggressive allocation that’s acceptable within your personal risk profile. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 things you shouldn’t do if the stock market crashes appeared first on The Motley Fool Australia.

More reading

• Westpac (ASX:WBC) share price falls despite asset sale announcement
• Magellan (ASX:MFG) share price crashes 23% after losing major contract
• Could 2022 be a good year for the AGL (ASX:AGL) share price?
• Is the Santos (ASX:STO) share price well oiled and gassed up for 2022?
• How high will ASX travel shares fly in 2022?

Ryan Downie has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Vanguard Growth ETF and Vanguard Value ETF. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3mf39gk