Category: Stock Market

What a roller-coaster the Commonwealth Bank of Australia (ASX: CBA) share price has been on in 2021 so far. CBA shares are up 19.73% so far this year. Not a bad return for an S&P/ASX 200 Index (ASX: XJO) blue-chip share.

Late last month, CBA hit $100 a share for the first time ever and went on to go as high as $106.57 by 17 June. But then things came back to earth somewhat when CommBank shares fell almost 8% between 17 June and 21 June. Today, the CBA share price is trading back above $100 and is sitting at $100.20 at the time of writing, down 0.28% for the day.

So with the ASX 200’s largest company sitting where it is after such a healthy start to the year, many investors might be wondering: ‘Is my money still safe in CBA shares today’? Good question. Because, as all good investors know, past performance is no indication of future success.

Well, let’s check out what the CBA share price is telling us firstly today. At $100.60, Commonwealth Bank of Australia shares represent a market capitalisation for the ASX bank of $178.78 billion. The company has a price-to-earnings (P/E) ratio of 22.41 on current pricing and a trailing dividend yield of 2.46%.

Just for comparison, CBA’s big four banking brethren all currently have P/E ratios lower than this figure. Westpac Banking Corp (ASX: WBC) comes closest with its 22.17 ratio today. But National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Grp Ltd (ASX: ANZ) are sitting at 20.16 and 17.14 respectively today.

So is your money safe with CBA shares right now?

But let’s get back to whether money is safe in CBA right now. One broker who has serious doubts about that prospect is investment bank, Goldman Sachs. Goldman does not think CBA shares are a great place to put your money today, to sum it up.

Goldman has a ‘sell’ rating on CBA right now, with a 12-month share price target of $80.26. That represents a potential downside of 20% on the current share price.

Firstly, Goldman is neither here nor there on the recently announced sale of CBA’s insurance division to Hollard Group. It notes that this sale is likely to be the last significant transaction of CBA’s ‘slimming down’ strategy. Goldman reckons this sale represents “10x the historic cash net profit of the general insurance business”.

Other than this deal, Goldman simply estimates that CBA shares are too expensive on current pricing. Its $80.26 share price target represents a combination of a discounted cash flow model, as well as a consideration of CBA’s return on equity, and its price relative to its net tangible assets (NTA).

Although Goldman accepts that if the market “continues to ignore the earnings impact of lower rates and focuses on dividend yield”, then it might be too pessimistic. Even so, Goldman clearly does not think investors’ money is safe in CBA shares right now.

The post Is your money safe in Commonwealth Bank (ASX:CBA) shares right now? appeared first on The Motley Fool Australia.

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

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The Sonic Healthcare Ltd (ASX: SHL) share price hit an all-time high today, reaching a top of $38.51 before pulling back to the current trading price of $38.15.

Today’s gains extend a 16% year-to-date run for the global pathology provider, outpacing the S&P/ASX 200 Index (ASX: XJO) which has posted a 10% return over same time.

Sonic’s share price has climbed an additional 9.66% over the previous 1 month at the time of writing, following the announcement it will acquire 100% of Canberra Imaging Group back on 17 June.

Regarding the transaction, Sonic chief executive officer Dr Colin Goldschmidt said:

“Canberra Imaging Group is a high quality imaging practice, with outstanding radiologists, management and staff, and with a culture that is strongly aligned with Sonic’s Medical Leadership model. CIG has a proven track record in the greater Canberra market, with a history of strong organic growth based on personalised and excellent customer service. I am delighted to welcome warmly all CIG staff to the Sonic Healthcare group.”

Today’s trading volume is 95% more than the 20 day average trading volume for this time of day, and the share price has come off a 52-week low of $30.08 back in June 2020.

Sonic share price snapshot

On current prices, Sonic Healthcare has a market capitalisation of more than $17 billion, and trades at a price-to-earnings ratio (P/E) of around 19.

The company also pays a dividend of 87 cents per share, 30% franked. At the current share price, this equals an annual dividend yield of around 2.3%.

Sonic has a sound track record of meeting its distribution schedule, having met each payment since March 2009.

At the time of writing, the Sonic share price is up 0.16% at $38.15 per share.

The post Sonic (ASX:SHL) share price hits all-time high today appeared first on The Motley Fool Australia.

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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 recommended Sonic Healthcare 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 Chalice Mining Ltd (ASX: CHN) share price is gaining today, up more than 4%.

Below we take a look at the latest exploration announcement from the ASX resource share and its joint venture (JV) partner Venture Minerals Limited (ASX: VMS).

What did Venture and Chalice announce?

Chalice Mining’s share price is rising today after Venture reported Chalice has uncovered new electromagnetic (EM) anomalies at Venture’s South West Ni-Cu PGE Project. (That’s nickel, copper and platinum group elements, for the uninitiated).

According to the release, the EM anomalies were found during early surveys of the “ground based moving loop EM (MLEM) and fixed loop EM program”.

Under the terms of the JV earn-in agreement, Chalice can earn up to 70% if it spends $3.7 million exploring the targets over a 4-year period. The current exploration program is the first stage of that JV earn-in.

Venture reported that the new EM anomalies are similar strength conductors to ones detected during the early drilling phase of the Julimar Ni-Cu-PGE discovery. Those “yielded wide and significant palladium intervals”.

The MLEM program has suffered some delays due to rains, with one third of the total planned 42 line kilometres completed so far. The full program is now expected to be complete by November. Once that’s complete, Venture said any promising anomalies will be infilled “to define targets for subsequent follow-up with surface geochemical sampling or drilling”.

Commenting on the developments, Venture’s managing director, Andrew Radonjic said:

Venture is extremely encouraged by the success of the early work done by our JV partners Chalice Mining on our South West Project. The ground EM program, though only one third complete, has already yielded new EM anomalies with one sitting adjacent to a previously drilled hole containing significant disseminated sulfides with elevated PGE levels.

The majority of the Thor ‘Julimar lookalike’ Target that already hosts several airborne EM anomalies is yet to be tested by Chalice’s EM program and the company looks forward to results from this work and potential follow up drill testing in the near future.

Chalice Mining share price snapshot

Chalice Mining’s share price has been a stellar performer over the past 12 months, up 638%. By comparison, the All Ordinaries Index (ASX: XAO) gained 27% over that same time.

Year-to-date the Chalice Mining share price has continued to outperform, up 72% in 2021.

Venture Minerals also got a healthy boost from today’s announcement, with shares up 11% today. That brings the Venture Minerals’ share price gains to 400% over the past 12 months.

The post Up 638% in 1-year, why the Chalice Mining (ASX:CHN) share price is gaining today appeared first on The Motley Fool Australia.

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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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Shares in AVZ Minerals Ltd (ASX: AVZ) are frozen as the company prepares to announce news of an equity raising. The AVZ Minerals share price ended yesterday’s trade at 16 cents, where it remains.

The mineral exploration company is keeping its cards close to its chest today. However, it’s told the ASX its equity raising will be in the form of an institutional placement and a share purchase plan.

Let’s take a closer look at today’s news from the company.

AVZ Minerals shares freeze over

AVZ Minerals is planning to keep its shares frozen until 2 July, unless it announces news of its placement to the market earlier.

While the company didn’t specify how it will use the capital it plans to raise, the Australian Financial Review (AFR) has reported most of the funds will go towards increasing its share of the Manono Project in Africa to 75%.

The capital raise will reportedly see the company with an extra $35 million to play with.

$30 million worth of new shares are said to have been offered to institutional and sophisticated investors, while $5 million of new shares were presented to existing shareholders.

The placement reportedly involved new shares on offer for 13 cents apiece.

Today’s trading halt is the third the company has undergone in 2021.

About the company

AVZ Minerals is a Perth-based exploration company.

Its focus is on mining lithium, tin and tantalum in the Democratic Republic of Congo.

The company is currently developing the Manono Project. It believes the project could be one of the largest lithium, caesium and tantalum deposits in the world. AVZ Minerals holds a 60% interest in the project.

AVZ Minerals share price snapshot

So far, 2021 hasn’t been a good year for the AVZ Minerals share price.

Currently, it’s 5.8% lower than it was at the start of the year. However, it’s gained a whopping 220% since this time last year.

The company has a market capitalisation of around $462 million, with approximately 2.9 billion shares outstanding.

The post The AVZ Minerals (ASX:AVZ) share price is frozen today. Here’s why 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 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the financial year on a positive note. The benchmark index is currently up 0.5% to 7,338.8 points.

Here’s what is happening on the market today:

Telstra asset sales

The Telstra Corporation Ltd (ASX: TLS) share price is shooting higher today after revealing that it has sold a 49% interest in Telstra InfraCo Towers to the Future Fund, Commonwealth Superannuation Corporation, and Sunsuper. InfraCo Towers has ~8,200 towers across Australia, making it the largest provider of mobile tower infrastructure in the country. Telstra expects to receive $2.8 billion after transaction costs, with approximately 50% of net proceeds from the sale to be returned to Telstra shareholders in FY 2022.

AGL sinks on demerger update

The AGL Energy Limited (ASX: AGL) share price is sinking today after providing an update on its demerger plans. Given shareholder approval, AGL Energy will become Accel Energy, an electricity generation business focused on the accelerating energy transition. It will then demerge a new entity, AGL Australia, which will be a multi-product energy-led retailing and flexible energy trading, storage and supply business. And while it has reaffirmed its guidance, it has terminated its special dividend program because of its demerger plans.

Mining shares rise

One area of the market helping to drive the ASX 200 higher today is the resources sector. The likes of BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and South32 Ltd (ASX: S32) are all pushing higher, taking the S&P/ASX 200 Resources index 1.2% higher so far today.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Iluka Resources Limited (ASX: ILU) share price with a 9% gain. While there has been no news out of the mineral sands producer, it has recently been tipped as a takeover target. The worst performer has been the Nuix Ltd (ASX: NXL) share price with a 13% decline. News that its recently sacked chief financial officer, Stephen Doyle, is the subject of a criminal investigation into insider trading has spooked investors.

The post ASX 200 up 0.5%: Telstra asset sales, AGL demerger, Nuix crashes again 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. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Nuix Pty 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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COVID-19 lockdowns in Sydney, Perth and south-east Queensland will cost Australia $2.5 billion, but could actually be a boon to the ASX share market.

That’s the opinion of AMP Capital chief economist Shane Oliver, who thought Australia really has no choice but to keep enduring lockdowns until the majority of the population is vaccinated.

“Australia’s approach has led to relatively less deaths and a stronger economy,” he said in a AMP Ltd (ASX: AMP) memo this week. 

“And being early in the vaccination process – both globally and in Australia – it’s still too early to simply relax controls.”

Oliver calculated that, with greater Sydney hosting about 6.6 million people and roughly 25% of the national GDP, the 2-week lockdown there would be a $2 billion hit to the economy.

Perth’s shorter shutdown would be $200 million and Queensland’s 3-day freeze would cost $300 million.

That $2.5 billion total doesn’t include Victoria’s fortnight-long lockdown starting last month, which was an estimated $1.5 billion blow to the economy.

COVID-19 lockdowns work: for health and economy

According to Oliver, early and snappy lockdowns work well to keep people healthy and minimise damage to the economy.

“‘A stitch in time saves nine’ as the old saying goes!” he said.

“Providing they are short, the economic impact is relatively ‘minor’ — although still horrible — as spending and economic activity is delayed, which then bounces back once the lockdown ends.”

According to Oliver, countries that had a less stringent health approach, like the US and Sweden, ended up suffering more deaths and a worse economy.

“If Australia had a laxer approach, and as a result had the same per capita deaths as the US, it would have lost an extra 47,000 Australians on top of the 910 deaths so far,” he said.

“More deaths and a worse economy do not strike me as a compelling case to avoid lockdowns.”

Lockdowns could be a major boost for stocks

Oliver pointed out that the current COVID-19 outbreak could have a positive side-effect for ASX investors.

“The ongoing threat posed by coronavirus and lockdowns will likely keep the RBA relatively dovish at its July meeting,” he said.

“While we expect it to stick to the April 2024 bond for its yield target and announce some tapering of its bond buying, it’s likely to reiterate that rate hikes remain a long way off.”

In addition, the current wave of the virus would probably “limit the upside in bond yields in the short term”, making shares more attractive as an investment choice.

The spread of the virus, Oliver admitted, could be a catalyst for a “near-term correction” in the share market, especially for cyclical stocks.

“But if snap lockdowns remain relatively short as we expect, they are unlikely to derail the Australian economic recovery or the rising trend in Australian shares.”

The post Lockdown fatigue? Expert explains why they could be great for ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 AML3D Ltd (ASX: AL3) share price is moving strongly in morning trade.

This follows the company’s latest announcement that it’s been engaged by aerospace giant Boeing (NYSE: BA).

At the time of writing, the advanced 3D parts manufacturer’s shares are fetching 23 cents, up 27.78%.

AML3D wins important partner

Investors are snapping up AML3D shares after the company provided an exciting update to the ASX.

According to its release, AML3D received a purchase contract from Boeing to produce and supply a 3D printed tooling component.

The Invar-36 “mandrel tool artifact” is a nickel-iron alloy used in applications that require high dimensional stability.

This material contains 36% nickel and possesses a rate of thermal expansion approximately one-tenth that of carbon steel. It’s currently adopted in a variety of applications such as telecommunications, aeronautical and aerospace engineering, cryogenic engineering and more.

AML3D will use its proprietary wire additive manufacturing (WAM) process to manufacture the 150kg tool.

Once delivered, Boeing will assess and test the Invar-36 tool for its mechanical properties, internal soundness and vacuum integrity.

AML3D noted that although the contract is worth less than $50,000, the significance of the partnership is massive. This is due to Boeing’s size and credibility as a leading international aerospace company. The potential commercial benefits of the collaboration could shoot AML3D to stardom.

Commenting on the agreement, AML3D managing director, Andrew Sales said:

AML3D is very excited to begin working with Boeing, one of the world’s largest aerospace companies. This purchase contract will provide the company with a key opportunity to showcase its ability to produce parts on time and to specification with a high-quality customer as the world adapts to 3D printed solutions in addition to traditional manufacturing.

About the AML3D share price

During the past year, AML3D shares went on a steep rise to reach 73 cents in September 2020 before gradually treading lower. The company’s shares are up 48% since this time last year but are down 36% year-to-date.

Based on today’s price, AML3D presides a market capitalisation of roughly $22 million, with approximately 99 million shares on issue.

The post Here’s why the AML3D (ASX:AL3) share price is rocketing 27% today appeared first on The Motley Fool Australia.

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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 Atomos Ltd (ASX: AMS) share price is producing the goods on Wednesday. In early trade, the monitor recorder company’s shares are up 9% to $1.05.

Today’s performance takes the 1-year Atomos share price gain to 146%.

Why is the Atomos share price racing higher?

Investors are pushing Atomos shares higher today following the release of a trading update. The update pertains to the company’s full year FY21 results for the period ending 30 June 2021.

According to the release, Atomos now expects to deliver FY21 sales in excess of $77 million. This would be a record result for the company. It would also represent a 73% increase on FY20 sales, which came in at $44.4 million.

While first half’s revenue was slightly higher than the previous year ($32.8 million versus $32.6 million), momentum built into the second half. Specifically, 2H FY21 sales are more than $44.2 million, up 275% on the prior corresponding period.

Commenting on the result, Atomos Executive Chairman Chris Tait said:

We are delighted to be providing an FY21 sales guidance upgrade to at least $77m which is $6.6m ahead of analyst consensus. This has been an amazing performance by everyone on the Atomos team. It seems a long time ago, when, at the beginning of FY21, staff were still furloughed, and monthly sales were tracking at $3m.

In addition to revenue growth, the company expects record full-year earnings before interest, tax, depreciation, and amortisation (EBITDA) of circa 9% of revenue. More value-orientated investors could be finding the Atomos share price appealing on this news.

What’s next for Atomos?

Looking ahead, the company will conduct an investor day on 2 August 2021. The event will be held both online and in-person in Melbourne. Barring any COVID-19 restrictions, it will offer an opportunity for investors to meet the Atomos executive team.

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Based on Tait’s comments, Atomos also has a strong pipeline of new products and technologies in development to drive further growth.

Such innovation is part of the reason some analysts still consider Atomos a hold, despite the strong share price rally.

The post Here’s why the Atomos (ASX:AMS) share price is surging 9% appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Atomos Ltd. The Motley Fool Australia has recommended Atomos 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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The Kingsgate Consolidated Limited (ASX: KCN) share price has sunk more than 5% in early trade. Shares in the company have taken a dive after Kingsgate announced the potential sale of its Nueva Esperanza project earlier today.  

Let’s take a closer look at the company’s announcement and how this could influence the Kingsgate share price.

Kingsgate announces potential sale of Nueva Esperanza

Earlier today, Kingsgate announced that the company signed a non-binding Letter of Intent (LOI) for the acquisition of its Nueva Esperanza development project.

The LOI for and with TDG Gold Corp outlined terms for the acquisition of the gold-silver development project located in Northern Chile.

In exchange for 100% ownership of the project, TDG will pay C$25 million in cash upon completion of the transaction. In addition, Kingsgate will be issued 14% of TDG’s outstanding common shares. C$6.25 million is also payable to Kingsgate within 3 months of completion of a Definitive Feasibility Study.

Kingsgate noted that the total value of the deal is approximately A$69.1 million that will allow the company to strengthen its balance sheet. In addition, the company will retain ongoing exposure to the gold and silver markets via its holdings in TDG.

Kingsgate noted that the transaction is subject to the parties entering into a legally binding agreement. In addition, both company’s must meet certain conditions such as board approval, due diligence and completion of financing

More on Kingsgate

Kingsgate is an Australian listed gold exploration, development and mining company. In addition to its Nueva Esperanza development project, Kingsgate also owns the Chatree Gold Mine in central Thailand.

The company’s Nueva Esperanza project has three mining areas with permits for development and associated water rights. In July 2020, the Nueva Esperanza project was granted Environmental Impact Assessment approval allowing the pre-development, construction and operation of the project.

Kingsgate noted that proceeds from the project could go towards refurbishing and restarting its Chatree Gold Mine in Thailand.

At the time of writing, the Kingsgate share price has recovered slightly and is trading around 2.5% lower for the day at around 85 cents per share.

The post Kingsgate (ASX:KCN) share price sinks on proposed acquisition appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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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AGL Energy Ltd (ASX: AGL) share price has sunk 4.5% in morning trade, despite announcing that it expects earnings for FY21 to remain within previously provided ranges.

The earnings announcement accompanied the company’s confirmation today of its intent to demerge and create 2 separate ASX listings.

The company also updated its earnings outlook for FY22, indicating it expects a downturn in forward earnings estimates.

What did AGL say?

For FY21, the company expects earnings before interest, tax, depreciation and amortisation (EBITDA) to lie within the lower half of the previous range of $1.58 billion to $1.84 billion.

AGL also sees underlying net profit after tax (NPAT) at the middle of the $500 million to $580 million range previously outlined to the market.

Of this NPAT figure, approximately $90 million is comprised of insurance proceeds relating to an outage at the Loy Yang A power station in 2019, consistent with AGL’s previous guidance on this matter.

According to the announcement from AGL this morning, a further $25 million of NPAT “includes a net benefit from a change in accounting policy that reduces historically capitalised costs relating to software as a service”.

What about AGL’s dividend?

In the earnings update AGL also announced it will be terminating its special dividend program. According to the release, AGL “no longer intends to pay out an additional 25% of Underlying Profit after tax for the FY21 final dividend or in FY22”.

The decision behind the cut was to “preserve approximately $400 million to $500 million in cash within AGL Energy prior to execution of the demerger.”

Moreover, the company also indicated its intention underwrite the company’s dividend reinvestment plan (DRIP) during the demerger planning period.

The DRIP underwriting program will enable shareholders to “elect either to receive a cash dividend or
participate in the DRIP by subscribing to receive AGL Energy shares in lieu of cash payment” AGL said.

What about FY22?

With respect to the coming financial year, AGL expects “material step-down in earnings as a result of the lower wholesale electricity prices of the last 2 years now being realised.”

The company did not provide any specific range for FY22 in this morning’s announcement.

AGL will be holding a conference call this morning to discuss the earnings update in addition to the demerger.

AGL share price snapshot

At the time of writing, AGL has a market capitalisation of $5.6 billion and trades at a price-to-earnings-ratio (P/E) of 7.05.

AGL shares are 3% in the red over the past 5 days, however are 8% up over the past 1 month.

The AGL share price is 27% down so far this year.

The post AGL (ASX: AGL) share price slumps after demerger, guidance update appeared first on The Motley Fool Australia.

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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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