Category: Stock Market

The Race Oncology Ltd (ASX: RAC) share price is swinging from losses to gains to losses again. At time of writing, shares in the ASX healthcare company have slipped below yesterday’s closing price, trading down 0.29% at $3.38.

We take a look at Race Oncology’s Leukemia clinical trial update below.

What did Race announce?

The Race Oncology share price is seeking direction after the company reported the first patient has been dosed in its “Phase 1b/2 trial in relapsed/refractory Acute Myeloid Leukaemia” trial.

The trial will use the company’s Zantrene in a 3-drug combination. According to the release, this combination has demonstrated “compelling efficacy” in earlier pre-clinical studies. (See here for more.)

Professor Arnon Nagler of the Chaim Sheba Medical Center in Israel is leading the study. Nagler previously conducted the Phase 2 single agent Zantrene R/R AML trial, which demonstrated a 40% clinical response.

Acute Myeloid Leukemia (AML) remains difficult to effectively treat. According to the release, approximately “30% of adults with newly diagnosed AML fail to achieve complete remission (CR) after 2 courses of intensive chemotherapy”. For patients who do achieve CR following chemotherapy, 50% of younger and 80% of older patients relapse.

Even when CR is achieved through intense chemotherapy, approximately half of the younger and 80% of the older patients, relapse.

Race Oncology commentary

Commenting on the progress, Race’s chief medical officer David Fuller said:

We are delighted to see the start of this important clinical project which uses a novel combination approach for relapsed or refractory Acute Myleoid Leukaemia. This study is also an important step in our journey towards approval of Zantrene in this area of high unmet medical need.

Race’s CEO Phillip Lynch added, “We hope to see improved patient outcomes in what has been historically a difficult to treat disease. We plan on using our trademarked name, Zantrene, in referring to bisantrene dihydrochloride.”

The trial in Israel will run in parallel with an Australian Phase 2 trial in patients with extramedullary AML.

Race Oncology share price snapshot

Over the past 12 months the Race Oncology share price has gained 304%, well outpacing the 25% gains posted by the All Ordinaries Index (ASX: XAO) in that same time.

Year-to-date Race Oncology’s share price has continued to surge, up 82% in 2021.

The post What’s going on with the Race Oncology (ASX:RAC) share price today? appeared first on The Motley Fool Australia.

More reading

• Race Oncology (ASX:RAC) share price slumps on quarterly update

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 Commonwealth Bank of Australia (ASX: CBA) share price has started the week off in positive territory on Monday morning. This follows a media report that Australia’s largest bank may tap into its war chest to launch a buyback program.

At the time of writing, CBA shares are swapping hands for $105.58, up 1.52%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is sitting at 7,563 points, up 0.34%.

What buyback plan?

According to the Australian Financial Review, CBA may unlock $5.5 billion to buy back its shares through a series of off-market trades. This is a massive turnaround from when the bank approved loan repayments to be deferred during COVID-19 last year.

In a broker note released on 3 August, Goldman Sachs forecast that CBA would report cash earnings of $8.34 billion in its full-year results on Wednesday. This represents a 15.5% increase when compared to the prior corresponding period. The robust performance is likely to be attributed to the company’s improved retail banking division and business banking branch.

In addition, CET1 capital ratio is forecasted to come in at 12.9%, an increase of 134 basis points against FY20.

Previously both National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) announced on-market buy-backs comprising $2.5 billion and $1.5 billion, respectively.

However, due to the evolving COVID-19 situation, there may be some risk to the timing and magnitude of capital management.

The buyback could be set at the maximum discount allowed by the Australian Taxation Office – at 14%. Effectively, this would place CBA shares at a buyback price of around $90 per share.

Goldman Sachs rated CBA shares as a sell, with a 12-month price target of $81.87. Based on the current share price, this implies a downside of roughly 21.8%.

CBA share price snapshot

Over the last 12 months, CBA shares have gained 45% for shareholders, with year-to-date above 25%. It’s worth noting that the company’s share price is nearing its all-time high of $106.57 reached in mid-June.

CBA commands a market capitalisation of approximately $184 billion, making it the biggest company on the ASX.

The post The CBA (ASX:CBA) share price is edging higher. Here’s why appeared first on The Motley Fool Australia.

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• What’s moving the CBA (ASX:CBA) share price this week
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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 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is slipping this morning despite no news being released by the company.

The fall comes as Victoria starts its first working week in lockdown while the Sydney COVID-19 outbreak continues despite shutdowns and lockdowns begin in Queensland’s north.

In addition, concerns are building in Tasmania after a taxi driver was exposed to the virus. Meanwhile, southeast Queensland enjoys its first morning out of its 8-day lockdown.

Right now, Flight Centre shares are down 2.42%, swapping hands for $14.90 apiece.

Let’s take a closer look at the latest news on Flight Centre.

What’s up with Flight Centre today?

While the market seems to be dubious about the travel sector – and the Flight Centre share price – today, the company’s CEO has been optimistic about its future.

Flight Centre’s CEO Graham Turner spoke about vaccine passports on Friday, saying it’s only a matter of time until they bring a semblance of normalcy back to international travel. At least, for those travellers fully inoculated against COVID-19.

Despite Turner’s recent positivity, market watchers seem to be wary of the travel sector today.

The Webjet Limited (ASX: WEB) share price is also falling. Webjet shares are currently trading for 1.15% less than they were at Friday’s close.

Sydney Airport Holdings (ASX: SYD) shares are also slipping 0.26%.

Perhaps oddly, the Qantas Airways Limited share price is in the green today. Though it’s had a rougher trot than most recently and may just be rebounding.

Flight Centre share price snapshot

Today’s falls have added to the woes of the Flight Centre share price.

It has fallen 5.5% since the start of 2021. However, it is 40% higher than it was this time last year.

The company has a market capitalisation of around $3 billion, with approximately 199 million shares outstanding.

The post Why is the Flight Centre (ASX:FLT) share price slipping 2% today? appeared first on The Motley Fool Australia.

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• ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs
• Sydney Airport (ASX:SYD) offer shows infrastructure interest: expert
• Flight Centre (ASX:FLT) share price higher as CEO looks beyond lockdowns

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 owns shares of and has recommended Webjet Ltd. 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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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.

Even after showings signs of a recovery in recent weeks, the price of two leading digital coins, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), have fallen almost 30% since May. Meanwhile, trading volume for all cryptocurrencies plunged more than 40% in June, and it hit year-to-date lows last month.

But be warned, even as cryptocurrencies seem to be building positive momentum again, the fundamentals still look troubling, and it could get worse in the near future. As a result, Bitcoin, Ethereum, and other cryptocurrencies all face mounting risks looking ahead.

The end of the line for cryptocurrencies in China 

For years, Chinese investors had been some of the biggest drivers of the cryptocurrency bull market. This is because of stringent capital outflow controls enforced by the central government. In fact, citizens are only allowed to purchase $50,000 worth of foreign currencies every year, so shifting hard-earned money abroad through cryptocurrencies became a no-brainer.

This has inflated the value of some coins due to limited supply. For example, let’s say Chinese tech billionaire Chen wishes to transfer $48 million to the Cayman Islands via a cryptocurrency known as the send-me-now (SMN) coin. However, there are only 100 SMN coins available, so Chen must first bid up the price of each coin to $480,000 to make it a one-time transaction. One can see how the price of cryptocurrencies could go up frequently and suddenly this way.

But the Chinese government doesn’t seem to like this loophole. Recently, the ruling Communist Party barred financial institutions and corporate entities from doing business with cryptocurrency investors. In addition, provinces are beginning to outlaw cryptocurrency mining operations, citing environmental concerns (which we’ll get to later). It’s hard for any asset to rebound in price when its major buyers have been barred from the market, and the recent volatility for non-fungible tokens (NFTs) has only added fuel to the flames.

NFTs are not what they seem

The logic behind the NFT hype is simple: authentic, physical art is expensive. NFTs are authentic, digital art. Therefore, NFTs should be expensive as well (corollary: NFT coins go to the moon). Unfortunately, that is far from the case. Physical artwork isn’t just expensive, because people who buy it are connoisseurs who like drinking red wine while viewing their collections. Much of the demand in that world is also driven by tax avoidance (that is, the reduction of taxes through legal means).

The setup works like this. Let’s say a high-net-worth individual (HNWI) named Sarah purchases a $5 million piece of artwork from an auction and ships it directly to a free port — a designated economic zone where customs duties and taxes do not apply until an asset leaves the zone — to legally avoid the sales tax. Five years later, the artwork appreciates to $25 million. Sarah then hires an appraiser, who usually has a financial incentive to inflate the piece’s value, to certify the painting. She then donates it to a non-profit and can claim the full market value of the piece at certification ($25 million) as a deduction against her income, usually over a few years. Because HNWIs do this, the value of artwork can also become grossly inflated.

But the demand is not replicable when it comes to NFTs. First of all, most non-profits don’t even accept cryptocurrency. What’s more, there is a lot of confusion as to NFTs’ classification. Suppose the Internal Revenue Service determines Sarah’s NFT was a collectible instead of an intangible capital asset, then tough luck. In that case, she could only deduct her cost basis ($5 million) for her donation — resulting in a redundant transaction. Until there is greater clarity about how they are classified under the tax code, there is little inherent value to NFTs based on the Ethereum blockchain. On a side note, it’s probably in the best interest of Uncle Sam that it stays this way.

Meanwhile, their utility for digital art collectors is very controversial. Buyers are getting exclusive rights to an item but often at a very high price for something that one can find all over the internet (i.e., a video from a professional basketball player). As a result, it’s unlikely the market could attract significant capital from investors long term. Regulations haven’t caught up with other possible uses like in real estate, so while NFTs are an innovative way to store something like a land deed, the practice needs greater industry and regulatory approval before taking off. 

Staggering environmental concerns 

Moving back to Bitcoin, the energy cost of mining it has gotten out of hand. Because Bitcoin’s reward keeps on halving, miners need to keep upgrading their equipment to stay profitable. For example, the latest Bitcoin mining machine, the Antminer S19, has a power consumption of 3,250 watts, equivalent to a central air conditioning system. At current coin and energy prices, miners typically spend close to $2,000 on their electricity bills per year, per machine. Bitcoin mining now consumes 0.55% of global electricity production, and it’s simply not sustainable. To put it into perspective, one Bitcoin transaction consumes about the same amount of energy as 1.2 million Visa card transactions. 

Bitcoin and Ethereum are two of the biggest flag-bearers for the overall cryptocurrency market, and as of this writing, they have severe utility and network issues that are unaddressed. Investors should understand that prices will continue to be extremely volatile as well. For those reasons, I believe the cryptocurrency bear market is far from over.

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

The post Is the cryptocurrency bear market over? appeared first on The Motley Fool Australia.

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Zhiyuan Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Ethereum, 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.

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The Vulcan Energy Resources Ltd (ASX: VUL) share price is falling in morning trade, down 3.55%.

Below we take a look at the ASX energy share’s proposal for a dual listing.

What did Vulcan propose?

Vulcan Energy’s share price is sliding after the company announced it has applied to dual list on the Frankfurt Stock Exchange (FSE). Vulcan intends to list in the Prime Standard market segment with high transparency requirements.

The company said the dual listing will boost its international profile and open the door for European investors to easily access shares.

Joh. Berenberg, Gossler & Co. KG (Berenberg) – the world’s oldest merchant bank – has been appointed as listing advisor.

Commenting on the dual listing, Vulcan’s managing director Francis Wedin said:

Given the German base and role in the EU energy transition of our Zero Carbon Lithium Project, Vulcan is aiming to increase its European investor base and international exposure, whilst meeting and exceeding the highest standards of governance, reporting and transparency.

This planned dual listing on the regulated exchange of the FSE, a first for any Australian company, will assist with this process. We look forward to working with Berenberg and our other advisors on this process, in what we hope will be an exciting next step for all shareholders as the company evolves.

Vulcan said it expects the listing process to take 6–9 months. Once completed, Vulcan will be the first Aussie company listed on the regulated market of the FSE.

Vulcan Energy share price and company snapshot

Vulcan Energy is working to supply the European electric vehicle revolution with lithium to power the batteries. The company’s goal is to become the world’s first lithium producer with net zero greenhouse gas emissions.

And its shares have been going gangbusters.

Vulcan Energy’s share price has gained an eye-popping 2,146% over the past 12 months. Over that same time the All Ordinaries Index (ASX: XAO) is up 25%.

Year-to-date the Vulcan Energy share price has continued to outperform, up 378% in 2021.

The post Up 2,146% in 1 year, Vulcan Energy (ASX:VUL) share price falls on dual listing news appeared first on The Motley Fool Australia.

More reading

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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 Tabcorp Holdings Limited (ASX: TAH) share price is on the rise. That’s after The Saturday Paper revealed the federal government approached the ASX-listed betting giant about “designing a lottery open only to those vaccinated against COVID-19.”

As of writing, shares in the company are selling for $5.01 – up 0.3%. The S&P/ASX 200 Index (ASX: XJO) is 0.34% higher.

Let’s take a closer look.

Tabcorp share price rises on vaccine lottery idea

To hit the Prime Minister’s target of 70% of eligible Australian’s vaccinated to enter Phase B of the transition to living with COVID, the government is reportedly seeking incentives to encourage Australians to get the vaccine.

Government isn’t alone in wanting to boost inoculations. The opposition Australian Labor Party has proposed a $300 payment for every fully vaccinated person. At the same time, the New South Wales government is allowing construction workers from hotspot areas to return to work. To do so, they must be partially or fully vaccinated.

The Morrison government seemingly believes a lottery may be the way forward. As Australia’s largest lottery operator, Tabcorp would have the expertise and systems to implement such a scheme if it were to happen.

It is somewhat ironic considering Tabcorp plans to demerge its lotteries business from its other operations. The Tabcorp share price fell on the day of the announcement.

In a statement to News Corp, which Tabcorp still stands by, the company said such a scheme would require jumping through several hurdles.

Introducing a dedicated lottery for those vaccinated would require, among other things, navigating the requirements of our state lottery licences and responsible gambling practices, the approval of state government regulators, gaining clarification from the Therapeutic Goods Administration around incentivising vaccinations, and maintaining customer privacy.

Is this happening elsewhere?

If the Australian government and Tabcorp were to implement a vaccine lottery, it would not be the only government to do so.

The New York Times reports several states in the United States are offering cash prizes of up to $1 million. The cash prizes are to encourage residents to get the vaccine. Ohio, the first state to offer such a lottery, abandoned its plans when an initial bump in vaccination rates dissipated.

Dr Stephen Duckett, a healthcare policy expert, endorsed the idea of a vaccine lottery previously.

“The path out of lockdowns and back to freedom requires almost all of us to be vaccinated. Let’s get there quicker by launching Vaxlotto,” Dr Duckett said.

This may help to explain the rise in the Tabcorp share price.

Tabcorp share price snapshot

Over the past 12 months, the Tabcorp share price has increased 44.1%. Year to date it is up 25.3%.

Tabcorp Holdings has a market capitalisation of $11.1 billion.

The post Tabcorp (ASX:TAH) share price rises after vaccine lottery idea appeared first on The Motley Fool Australia.

More reading

• Expert expects demerger to benefit Tabcorp (ASX:TAH) share price

Motley Fool contributor Marc Sidarous 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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Are you looking to make some additions to your portfolio? If exchange traded funds (ETFs) are of interest to you, then you might want to look at the three listed below.

Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. This ETF gives investors access to a number of the most promising tech shares in the Asian market. This means you’ll be owning a slice of growing companies such as ecommerce giant Alibaba, search engine company Baidu, WeChat owner Tencent, and online retail platform Pinduoduo.

The latter connects distributors with consumers directly through an interactive shopping experience, allowing shoppers to team up and buy items in bulk at lower prices. It is now the largest retailer in the region with 788 million annual active customers.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF to look at is the BetaShares Global Cybersecurity ETF. As it names indicates, this ETF gives investors exposure to the leading companies in the global cybersecurity sector. This could be a great place to be right now, with demand for cybersecurity services increasing due to the growing threat of cyberattacks.

Included in the fund are quality companies such as Accenture, Cisco, Cloudflare, Fortinet, Okta, Splunk, Zscaler, Crowdstrike. The latter is a provider of incident response and forensic analysis services via its Falcon platform. CrowdStrike’s services are designed to help businesses understand whether a breach has occurred. It then allows the user to respond and recover from a breach with speed and precision to remediate the threat.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports.

Among the companies you’ll be buying a slice of are Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck notes that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The post 3 highly rated ETFs for ASX investors this month 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 shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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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I wrote last week about the phony war between ‘Value’ and ‘Growth’.

In short, it’s a phony war because they can’t be separated from each other, and, at the extremes, becomes a vain argument over identity and, as such, a waste of time.

What do I really think? I’m glad you asked…

That doesn’t mean there aren’t some great investors the market chooses to call ‘value investors’ (they may even use the label themselves). And the same for the great ‘growth investors’.

Which is kinda the point. If both can and do flourish, doesn’t that just prove that it doesn’t need to be an ‘either/or’ game?

I also mentioned that, rather than either label, my investing tends to (roughly) centre around the concept of ‘quality’.

I have my share of losing investments.

But among my winners are long term ‘growth’ stories like Corporate Travel Management Ltd (ASX: CTD) (I still own shares), and ‘value’ stories like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) (I still own them, too).

But, truth be told, while CTM had a lot of growth ahead of it when bought it, I paid what I thought was a defensible price, based on the value I saw in its shares.

And while Soul Patts is considered by some to be about as boring as it gets, according to the most recent figures it published, the company had beaten the market over the 1, 3, 5, 10 and 15 years. Not bad for a stodgy, boring value stock huh?

Now, you’re not going to get me to wave either the value or the growth flag here.

But I am going to speak for both, applied properly.

See, I thought CTM was great value, because of the potential growth I thought it could achieve via organic customer growth and some choosy and well-priced acquisitions.

Yep, value because of growth. It’ll blow some minds, but I thought it was true (and thus far, I’ve been roughly right).

And while Soul Patts is run by people often considered ‘conservative’, it’s more than a century old, and the company name couldn’t be more boring, some of its most important assets have grown very nicely. Companies like TPG Telecom Ltd (ASX: TPG), brickmaker Brickworks Limited (ASX: BKW) and in-house managed assets like a property fund and equity portfolio.

No, I’m not saying ‘everything is okay, depending on how you look at it’

I’m saying that it’s hard to make money as a value investor without growth.

And it’s hard to be a successful growth investor if you overpay for everything.

I do want to speak, though, to the value of growth (no juxtaposition intended) in an investment portfolio.

See, the investing equation runs something like this:

Your return equals:

— The percentage of the time you’re ‘right’ times the average gain when you’re right

minus:

— The percentage of the time you’re ‘wrong’ times the average loss when you’re wrong

Now, if you’re a hardcore venture capital investor you might be super high-risk: losing almost everything 9 times out of 10, but make 100 times your money when you’re right.

If you’re a hardcore deep value investor, your average gain when you’re right might be 30-40%, meaning you can’t afford to be wrong too often — one wipeout might cancel most or all of your gains.

Most of us, of course, are somewhere in between.

Professionally, my strike rate is around 6 times out of 10.

So that’s better than even.

Plus, my average gain tends to be large than my average loss.

Going back to our equation above, that should deliver — as it has, so far — market-beating results.

But here’s why I like to (mostly) but companies with growth potential.

If I was buying $1 for 70c (the deep value formula), once the market realised my dollar was worth a dollar, the gap would close, and my investment thesis would be over.

Oh, don’t get me wrong: it would have been a profitable investment, and I’d be happy… but I’d still have to close it out, rebait my hook, and cast again.

Nothing wrong with that. At all.

But, to torture my fishing analogy, what if I could hook the fish but leave it in the water to keep growing?

What if that $1 I bought for 70c could grow to actually be worth $1.30.

Then $1.75

Then $3.

I know I have the fish.

It’s on the hook.

I don’t have to rebait. Or recast.

Okay, enough of the fishing (for now, at least).

The ‘fish’ in this latter case is, of course, a growing company.

It’s Woolworths Group Ltd (ASX: WOW), bought at $3.

Commonwealth Bank of Australia (ASX: CBA), purchased at $10.

BHP Group Ltd (ASX: BHP), at $5.

I wouldn’t buy any of those companies, today, for growth.

But at the right point in history, in the right circumstances, at the right price?

Absolutely.

Compare that with Telstra Corporation Ltd (ASX: TLS) (whose shares I also own).

It has been a very long time since that company delivered any meaningful growth.

Maybe you could have bought it a little cheaper. And sold it a little dearer.

But compare that with the ten-bagger (ten-fold) returns from those other three companies.

Making money on Telstra was hard work. Bloody hard.

The others?

It was recognising they were quality businesses, with growth ahead of them, then buying.

And holding.

That last bit is important.

Not only do you minimise the chance of error in my mind (buying and selling over and over again means you’re making more decisions, each of which you have to get right), but you get the compounding power of quality.

So, while I don’t choose to put myself in the (partisan and usually unhelpful) bucket of either value or growth, it is important to highlight that I do look for companies with strong growth potential (and preferably a strong track record of growth, too).

Because, if you get it right, the compound returns can be astronomical.

Fool on!

The post Are you a ‘Catch and Release’ investor? appeared first on The Motley Fool Australia.

More reading

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• CBA (ASX:CBA) share price history: What caused the biggest ups and downs?
• Telstra (ASX:TLS) share price in focus after announcing $350m MedicalDirector acquisition
• ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Scott Phillips owns shares of Corporate Travel Management Limited, Telstra Corporation Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks, Corporate Travel Management Limited, Telstra Corporation Limited, and Washington H. Soul Pattinson and Company 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 Wesfarmers Ltd (ASX: WES) share price is falling in early trade amid news of a green hydrogen agreement.

The agreement is between energy infrastructure company Jemena and Wesfarmers’ subsidiary Coregas. It will see green hydrogen supplied to New South Wales’ transport sector for the first time.

Right now, the Wesfarmers share price is $63.68, 0.42% lower than its previous close.

Let’s take a closer look at today’s news.

Green hydrogen deal

The Wesfarmers share price is down amid news of the agreement between gas producer and distributor Coregas and energy infrastructure company Jemena.

Under the agreement, Jemena’s green hydrogen will be available to transport and industry customers by early 2022.

Coregas’ executive general manager Alan Watkins commented on the deal:

Transforming the transport sector is a critical piece of the [decarbonisation] puzzle, and we are delighted to partner with Jemena to make renewably generated green hydrogen available to the transport industry in New South Wales.

Coregas has also recently ordered Australia’s first hydrogen-powered trucks. The trucks will be put to work at the company’s NSW hydrogen production facility. Coregas also plans to build the country’s first commercial hydrogen refuelling station at the facility. Watkins commented on Coregas’ hydrogen-powered trucks, saying:

Coregas is working hard to apply our expertise in hydrogen distribution, compression and storage to Australia’s transition to a hydrogen economy.

While the news might not be having a huge effect on the Wesfarmers share price, it promises to boost the decarbonisation of the transport sector.

Transport NSW notes hydrogen-powered heavy-duty vehicles are needed for the transport industry to reach its goal of net-zero emissions by 2050.

Jemena’s general manager for renewable gas Gabrielle Sycamore also commented on hydrogen’s role in decarbonising the industry, saying:

We know that green hydrogen has the immediate potential to become a viable zero emission alternative to many petroleum-based fossil fuels currently used by industries such as transport and remote power generation.

Wesfarmers share price snapshot

The Wesfarmers share price has been performing well lately.

It has gained 26% since the start of 2021. It is also almost 39% higher than it was this time last year.

The company has a market capitalisation of around $72.5 billion, with approximately 1.1 billion shares outstanding.

The post Wesfarmers (ASX:WES) share price slips amid green hydrogen agreement appeared first on The Motley Fool Australia.

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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 owns shares of 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 COVID-19 pandemic leaves many bad memories for investors but it proved to be a catalyst for the mega-merger between the Afterpay Ltd (ASX: APT) share price and Square Inc (NYSE: SQ).

It turns out that Afterpay has been on the radar of Square for at least four years, reported the SMH.

The article said that Square’s former country manager for Australia, Ben Pfisterer, helped make the initial introduction.

Square eyeing Afterpay for years

This was in 2017 when Afterpay’s founder Nick Molnar was in San Francisco. But Pfisterer told the SMH that the timing wasn’t quite right back then for Square to contemplate an acquisition.

Square is founded by Jack Dorsey, a controversial tech business identity who started Twitter Inc (NYSE: TWTR).

But when the pandemic struck and bolstered the adoption of cashless payments, that changed everything.

Filling in the blanks

Square could see how the Afterpay platform can help it fill in a big missing gap in its merchant payment offering and consumer “Cash” app. The latter helps users make peer-to-peer payments and to invest in stocks and cryptocurrencies.

The popularity of the Cash app skyrocketed during COVID while its merchant payment solution tumbled.

Square believes having a fledging buy-now, pay-later (BNPL) offering will help bridge the gap between the two key offerings.

Should you take profit on the Afterpay share price?

From Afterpay’s perspective, being part of a bigger organisation with a higher profile will help it stay ahead of large competitors who are nipping at its heels.

But Afterpay shareholders hoping to get some advice on whether to take profit or hang on for the Dorsey dream machine won’t find many hints in the SMH article.

Liquidity and valuation questions cloud the merger

Experts appear divided on this question. The ASX will be a secondary listing for the all-scrip merger of the two. Naysayers warn that liquidity could be a problem for Australian investors.

Also, there are questions about whether the Square share price has run ahead of fundamentals. Its shares have surged by over 2000% over the past five years. Even with the Afterpay afterburner, Square may not be able to sustain its sky-high growth rates.

Reasons to hang on for the Afterpay-Square ride

On the flipside, Aussies suddenly have an easy way to join the US tech party. Many ASX investors are reluctant to own US tech shares even though they have outperformed just about every other benchmark over the past several years.

The Afterpay share price gives us one of the easiest ways to partake in the merrymaking without having to worry about currency risks and transaction costs.

And as long as the Reddit army of cashed up and bored millennials continue to be a force to be reckoned with, the Afterpay share price could have more upside as it joins Square.

The post Afterpay (ASX:APT) shares have been on Square’s radar for years appeared first on The Motley Fool Australia.

More reading

• If you invested $1,000 in Afterpay (ASX:APT) shares 4 years ago, here’s what it would be worth now
• ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs
• These were the best performing ASX 200 shares last week
• The Sezzle (ASX:SZL) share price is up 9% this month. Here’s why
• Here are the top movers in the ASX 300 today

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Square, and Twitter. The Motley Fool Australia owns shares of and has recommended AFTERPAY T 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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