Category: Stock Market

The Betmakers Technology Group Ltd (ASX: BET) share price certainly hasn’t had a week to remember… more like a week its shareholders would probably like to forget. Last Thursday, this was a company at a new 52-week (and all-time) high of $1.65 a share. That’s after having climbed a hefty 345% or so over the preceding 12 months.

But today, the Betmakers share price is down another 4.23% to $1.09 a share. Yep, in just under one week, this company has lost over 32% (or close to a third) of its market capitalisation. Ouch.

So what happened to this formerly high flying ASX share?

What has sparked the Betmakers share price sell-off?

Well, it appears investors are in something of a revolt against an announcement Betmakers made to the markets last week (you guessed it, on Friday). This announcement flagged Betmakers intention to acquire the wagering and media business of Tabcorp Holdings Limited (ASX: TAH) for a price of roughly $4 billion.

As we reported at the time, Tabcorp would receive $1 billion in cash and $3 billion in Betmakers shares under the proposed arrangement, which Betmakers will fund through debt financing and the issuance of new shares.

Here’s some of what Betmakers’ Matt Tripp said about the proposal:

I am excited by the potential opportunity to reinvigorate the Tabcorp Wagering and Media business. There is significant potential for the business to grow in partnership with Betmakers and I hope to get the opportunity to support the Australian racing industry which relies on the success and growth of TAB.

Well, it appears investors don’t quite agree, judging by the rather brutal sell-off this announcement has sparked. Interestingly, the Tabcorp share price has done a whole lot of not much since the proposal was gazetted. This possibly indicates that the market views the proposed arrangement as somewhat one-sided. However, it is worth noting that Tabcorp has yet to offer an opinion on the offer. It did release a statement last week that acknowledged the proposal, but stated the following:

The Tabcorp Board has not yet formed a view on the merits of the proposal and will assess it in the context of the previously announced strategic review.

At the current share price, Betmakers has a market capitalisation of $881.4 million.

The post Betmakers (ASX:BET) share price drops another 4%, now down 32% in a week appeared first on The Motley Fool Australia.

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Yesterday I had a look at a few ASX shares that Morgans has named as its best ideas for June. You can read about those here.

This afternoon, I’m going to keep going and bring a few more highly rated ASX shares to your attention. Here’s why this leading broker likes these shares:

BHP Group Ltd (ASX: BHP)

If you’re not averse to investing in the resources sector, then you might want to look at BHP. Morgans sees it as a low risk option in the sector due to its diverse operations.

It explained: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”

Macquarie Group Ltd (ASX: MQG)

This investment bank could be good value according to Morgans. This is particularly given its exposure to growth markets. Its analysts currently have an add rating and $171.00 price target on its shares.

The broker commented: “We still see MQG as relatively inexpensive and continue to like its exposure to long-term structural growth areas such as infrastructure and renewables. Near term MQG is likely to face earnings pressures from the impact of soft economic conditions but it remains well positioned to ride out the current COVID-19 period and seize opportunities on the other side.”

Sonic Healthcare Limited (ASX: SHL)

Finally, thanks to COVID-19 testing volumes remaining strong, Morgans believes this healthcare company is well-placed for growth. It also sees opportunities for the company to make earnings accretive acquisitions. Morgans has an add rating and $36.15 price target on its shares.

Morgans said: “We see COVID-19 testing continuing into the foreseeable future, with growth potential in COVID-19 serology testing. SHL’s global base business is increasingly resilient, benefitting from geographical diversity. Strong B/S (gearing 21.6x; A$1.3bn headroom) opening the door to acquisitions, contracts and JVs.”

The post More of this leading broker’s best ASX share ideas for June appeared first on The Motley Fool Australia.

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Polynovo Ltd (ASX: PNV) had a tough May. Shares in the medical company were trading around $3.05 at the start of the month only to drop almost 15% to $2.60. 

The Polynovo share price is trading at $2.59 at the time of writing.

The jewel in the Polynovo crown is its NovoSorb product, a “novel range of bio-resorbable polymers whose unique properties provide skin regeneration for burn victims”, according to the company.

Once the ‘belle of the ball’

Polynovo growth numbers over the last two years have been impressive. The PolyNovo share price was one of the best performers on the ASX in 2019, up more than 190% for the year.

Then in 2020, the share price almost doubled in price with a 97% gain. It was a stock market favourite returning more than 825% over 5 years.

Then came COVID

Polynovo is a global business and relies on its ability to work with hospitals. As its half-yearly report indicates, the company currently operates in the United States, Australia, New Zealand, Europe, UK/Ireland, South Africa, Malaysia, Singapore, India, Israel and Saudi Arabia. For growth, the company relies on approaching surgeons with its medical applications. So business has taken a hit from the COVID-19 pandemic.

The Polynovo report advised that revenues had been affected by reduced access and elective surgery in all regions. Despite the bad news, the business reported that its Novosorb BMT sales had increased 31.2% to $11.25 million and its net loss swelled to $3.54 million in the six months ending 31 December. This from $2.42 million in the year-earlier period. 

The results appear to have disappointed the market and the shares have not really recovered since. The Polynovo share price traded flat at $2.42, following the result. Five months later, the share price is still struggling at $2.56.  

The winds are changing

The sentiment coming from management is positive. In a February interview with the Australian Financial Review (AFR) Polynovo managing director Paul Brennan said surgery rates had bounced back in some US states. Mr Brennan was confident that:

… thanks to the vaccine rollout progressing well in the UK and falling infection rates, surgery rates would begin to increase and it should see a corresponding sales increase.

What bear?… David has been buying 

Nothing ‘talks the talk’ of positive sentiment than when company insiders are buying shares. Especially if that insider is the chair of the company. Polynovo chair David Williams bought 100,000 shares on 10 March at $2.34 per share via on-market trade. 

According to the AFR, Williams raised his stake from 16.6 million ordinary shares to 18 million over six weeks after the half-year results in February. He bought shares at prices ranging from $2.47 to $1.40. 

The end of year financial report will provide insight into the Polynovo share price moving forward. Less frequent lockdowns and an accelerating vaccination process around the world is likely to be positive for a global company such as Polynovo.

Polynovo shares have fallen almost 34% year-to-date and 5% over the past 12 months. Shares in the medical equipment industry have lifted 12% over the corresponding 12-month period. 

The post Why did the Polynovo (ASX:PNV) share price drop 15% in May? appeared first on The Motley Fool Australia.

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On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Magellan Financial Group Ltd (ASX: MFG)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $47.97 price target on this fund manager’s shares. This follows the launch of Magellan’s FuturePay equity income product, which will pay a fixed distribution benchmarked to inflation. While the product may be appealing for advisors, Goldman doesn’t believe it is for investors. As such, it isn’t adjusting its earnings forecasts to account for its launch until it can better gauge demand. In light of this, and with its performance still skewing earnings risks to the downside, it has retained its sell rating. The Magellan share price is trading at $48.86 today.

Prime Media Group Limited (ASX: PRT)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on the regional television focused media company’s shares to 9 cents. The broker believes that regional TV advertising is improving after the recent downturn. However, while this may be positive, Morgan Stanley continues to believe that its medium to long term earnings are under threat due to a structural decline in the regional advertising market. The Prime Media share price is trading at 23 cents this afternoon.

Virtus Health Ltd (ASX: VRT)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $5.05 price target on this fertility treatment company’s shares. The broker notes that IVF cycles are growing strongly versus both 2020 and 2019 levels and are expected to continue doing so during the second half. However, due to its stretched valuation, Morgan Stanley believes there are better options for investors in the industry. The Virtus Health share price is fetching $6.23 on Thursday.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

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In early afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 0.4% to 7,249.1 points.

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

Dubber Corp Ltd (ASX: DUB)

The Dubber share price is up 5.5% to $2.84. This morning the unified call recording service provider announced that Cisco Webex Calling and Cisco Unified Communications Manager Cloud (UCM) will now include Dubber call recording as part of all services at no additional cost to users. If a user requires additional features, such as extended storage, video recording, transcription, sentiment analysis or AI-enriched insights, they can then upgrade their Dubber plan from within Cisco’s Control Hub with immediate access and effect.

Megaport Ltd (ASX: MP1)

The Megaport share price is up 4% to $15.31. Investors have been buying the company’s shares following the release of a positive broker note out of Canaccord Genuity. According to the note, the broker has retained its buy rating and lifted its price target to $17.40. In addition to this, while Morgans held firm with its hold rating this morning, it has lifted its price target by 19% to $15.83.

Sezzle Inc (ASX: SZL)

The Sezzle share price has jumped 22% to $9.15. The catalyst for this was news that the buy now pay later provider has signed a three-year agreement with retail giant, Target Corporation (NYSE: TGT). According to the release, the deal follows Sezzle completing its proof of concept with Target, which looked at the feasibility of a partnership. Sezzle’s platform will be available in-store and across Target’s digital platforms.

Worley Ltd (ASX: WOR)

The Worley share price has stormed 9% higher to $12.18. This strong gain appears to have been driven by a positive reaction from brokers to yesterday’s investor day event. Goldman Sachs retained its conviction buy rating and $15.60 price target on the engineering company’s shares. Whereas Citi has retained its buy rating and lifted its price target to $12.60.

The post Why Dubber, Megaport, Sezzle, & Worley shares are storming higher appeared first on The Motley Fool Australia.

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price is having a negative day despite announcing an exciting co-promotion agreement.

At the time of writing, the biotechnology company’s shares are fetching for $4.35, down 2.25%.

Telix expands partnership

Investors appear unfazed by the company’s positive release, consequently sending the Telix share price lower today.

In a statement to the ASX, Telix advised it has entered into a co-promotion agreement with Eckert & Ziegler Strahlen und Medizintechnik AG (EZAG).

Founded in 1997 and based in Berlin, Germany, EZAG is one of the world’s largest providers of isotope technology. The company specialises in cancer therapy, industrial radiometry, and also nuclear-medical imaging. This technology is utilised for medical, scientific, and industrial use.

Under the agreement, both parties will expand their relationship by combining EZAG’s GalliaPharm with Telix’s prostate cancer imaging product, Illuccix. This ensures a continuous supply of Ga-68 and Illuccix to healthcare providers across the United States.

GalliaPharm is a generator (Ga-68-PSMA) that is used in the diagnosis of neuroendocrine tumours and prostate cancer. The Ga-68 generator is a small metal box that is easy to transport.

On the other hand, Illuccix is a diagnostic imaging agent for the PET imaging of prostate cancer.

Telix America’s president, Dr Bernard Lambert commented:

This important cooperation between EZAG and Telix sales teams is highly complementary to our efforts in rolling out Ga-PSMA imaging across the US. Subject to FDA approval, we will together raise awareness of this state-of-the-art imaging modality and facilitate coast-to-coast access for US men living with prostate cancer.

EZAG executive director, Dr Harald Hasselmann added:

After previously being granted distribution rights for Germany, our home market, the latest collaboration marks another important milestone for our Ga generator GalliaPharm and our nuclear medicine activities. We are pleased to have Telix as a partner and to be able to jointly deliver leading edge diagnostic products to prostate cancer patients in the USA.

About the Telix share price

Over the past 12 months, Telix shares have performed strongly, rising by more than 230%. Year-to-date performance has also trekked higher for the 6 months, up 17%.

Telix presides a market capitalisation of roughly $1.2 billion, with approximately 281 million shares on issue.

The post Telix (ASX:TLX) share price backtracks despite positive update appeared first on The Motley Fool Australia.

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The Humm Group Ltd (ASX: HUM) share price is in the green during early afternoon trade. This follows the buy now, pay later (BNPL) company announcing a new feature giving merchants instant access to its services.

At the time of writing, Humm shares are swapping hands for $1.02, up 0.99%.

What did Humm announce?

According to this morning’s release, Humm has launched its Humm/TAPP instore feature. This allows users to tap a digital card when making purchases at any Humm merchant in Australia regardless of the store’s existing payment platforms.

Humm says its latest offering saves merchants significant costs, resources and time. Previously, it could take up to 3 months for Humm to be integrated into some instore point of sale systems.

As of today, Humm merchants can now facilitate the new payment method. This includes 300 merchants that signed up in the third quarter of 2021 and were not yet integrated.

Humm group CEO Rebecca James said:

TAPP removes the need for merchants and Humm to invest tens of thousands of dollars and several months integrating into in-store point of sale systems. With immediate access to transacting Humm customers, TAPP makes it easier and more attractive for merchants to include Humm as an in-store payment option.

Our customers now have a seamless and intuitive in-store payment method at every Humm merchant, in a familiar digital wallet experience.

Humm partner Mastercard helped developed the new payment experience. Mastercard’s division president Australasia Richard Wormald said:

Mastercard is delighted to partner with Humm to continue to drive seamless and secure digital payment experiences for consumers and merchants alike. Mastercard’s latest research revealed that 86% of Australian consumers expect to be able to buy what, when and how they want.

Humm share price snapshot

During the past 12 months, the Humm share price has recorded sharp and sudden movements, making it a volatile share to hold. The company’s share price is currently sitting at the lower end of its 52-week range.

During the past 12-months, Humm shares have rollercoastered from a height of $1.479 to as low as 84 cents. Year-to-date performance has seen the company’s shares fall by around 10%.

In market capitalisation terms, Humm is valued at around $503 million and has approximately 495 million shares on its registry.

The post Why the Humm (ASX:HUM) share price is humming along nicely today appeared first on The Motley Fool Australia.

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Shares in Galaxy Resources Limited (ASX: GXY) are gaining slightly following news regarding the company’s Mt Cattlin operation. Earlier this morning, the Galaxy Resources share price was trading as high as $4.08, a 2.8% gain on yesterday’s closing price.

At the time of writing, however, the company’s shares have retreated back to $4.00 – still 0.76% higher for the day so far.

This morning the lithium-focused mineral resource company announced Mt Cattlin’s 2021 production guidance has been increased, as well as its production costs.

Galaxy Resources’ Mt Cattlin operation is a spodumene project located in Western Australia.

Let’s look closer at what the company announced.

Mt Cattlin updates

According to Galaxy’s announcement this morning, Mt Cattlin has produced more than 40,000 dry metric tonnes of spodumene concentrate during the second quarter of 2021.

As a result, the company has increased Mt Cattlin’s spodumene concentrate 2021 full-year production guidance to between 195,000 and 210,000 dry metric tonnes. That’s up from its previous guidance of between 185,000 and 200,000 dry metric tonnes.

Galaxy advised that the operation is processing less ore than expected this year, but what it is processing has higher lithium content than was previously thought.

Additionally, the company’s expected sales volumes are in line with its increased production. Galaxy shipped 33,500 tonnes of spodumene concentrate in May and has a 15,000 tonne order to ship this month.

It also stated the price of its spodumene concentrate is likely to increase over the current quarter, bringing in more than US$750 per megaton after cost, insurance, and frieght.

It’s not all good news though – Galaxy’s production costs have increased.

Previously, the company estimated its production costs would be between US$360 and US$390 per tonne produced. That figure is now forecast to be between US$420 and US$450 per tonne.

Galaxy also shared the results from its recent reverse circulation drilling program completed at the Mt Cattlin operation.

Following the drilling program, the project’s mineral resource estimate was revised. It’s now:

• 11 million tonnes at 1.2% lithium oxide and 151 parts per million tantalum pentoxide.

Mt Cattlin’s ore reserve estimate is now:

• 8 million tonnes at 1.04% lithium oxide and 139 parts per million tantalum pentoxide.

Infill drilling at a deposit in the project’s north-west is now being completed. Galaxy has also brought the first phase of the project’s pre-strip forward to the second half of this year.

Galaxy Resources share price snapshot

Galaxy Resources shares have been having a party on the ASX of late.

Currently, the Galaxy Resources share price is around 79% higher than it was at the beginning of 2021. It’s also gained almost 370% since this time last year.

The mineral resource company has a market capitalisation of around $2 billion, with approximately 505 million shares outstanding.

The post Galaxy (ASX:GXY) share price up following guidance increase appeared first on The Motley Fool Australia.

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The WallStreetBets Reddit army might be at it again – as the AMC Entertainment Holdings Inc (NYSE: AMC) stock soared 95% overnight. Not too long ago this theatre chain company was being written off due to the impacts of COVID-19. Well, the company’s shares have now gained 1,047% in the last night after last night’s gain.

But what’s the story behind this theatre chain’s rise from the ashes? And what are commentators anticipating next?

AMC stock caught in the middle

When it all boils down, the main thrust of AMC’s meteoric rally is the war between Wall Street and Main Street. In other words, retail investors decided to act against the big hedge funds.

GameStop Corp. (NYSE: GME) was the frontrunner of a campaign against hedge funds, which were shorting companies into oblivion. Earlier in the year retail investors applied a buy and hold approach, which pushed the share price of GameStop higher. The rise in share price led to a few hedge funds making substantial losses on their short positions.

At the time, AMC was another US company that was receiving the same boost from retail investors. Unlike GameStop, AMC has gone on to surpass its January/February share price highs.

I read this tweet & I’m convinced there are two types of people talking past each other. The experienced investor/analyst is screaming/warning $AMC trading is nuts. The folks trading $AMC either know it’s nuts + don’t care or don’t know + don’t care because they’re making money. https://t.co/tnoCFIATpx

— Andrew Ross Sorkin (@andrewrsorkin) June 2, 2021

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

It appears the retail love has shifted more towards AMC than GameStop. Sentiment data for WallStreetBets over the last 24 hours corroborates this hypothesis. Reportedly, AMC was mentioned 9,130 times with 83% of the comments being positive towards the stock. Whereas, GameStop has received 2,280 mentions with 85% positive sentiment – according to Swaggy Stocks.

Where to from here?

Host of Mad Money, Jim Cramer believes the AMC share price is well into overvalued territory. Furthermore, Cramer thinks the theatre chain will face intensifying competition from the home streaming market as well as from the impact of COVID restrictions.

Commenting on the skyrocketing price of AMC shares, Cramer said:

AMC is fascinating, but now, at $22 billion, with 300 million shares traded out of a float of 500 million, it’s obvious that this is a stock where the sellers have just had to go away. The meme people have two stocks, they have GameStop and they have AMC, and they have nothing else frankly.

Like a cup of water on a raging fire, Cramer’s comments have failed to extinguish the meme stock’s momentum. In after-hours trade, the AMC stock is up a further 8.7% to US$68 a share. The company’s market capitalisation is now US$28.16 billion.

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The Mach7 Technologies Ltd (ASX: M7T) share price has struggled this year, but its management points to a solid outlook in its investor presentation announcement on Thursday.

At the time of writing, the Mach7 share price is trading at $1.03, down 0.5% today and 13.7% year-to-date.

Mach7 develops image management and viewing solutions for healthcare providers. Its solutions consolidate imaging data into a single platform, providing clinicians with fast access to diagnostic images with rich features on any browser or device.

Mach7 share price lower despite solid outlook

The investor presentation included outlook commentary for the imaging market and Mach7 business.

Mach7 observed that the “uncertainty and volatility brought on by the pandemic, hugely disruptive for the imaging IT market, is receding”. Instead, the new era of remote working has put pressure on imaging IT to remove barriers to streamline remote diagnosis for radiologists.

The company believes the “heightened focus on IT healthcare spend” could drive more opportunities for the enterprise imaging solutions market. Mach7 points out that the return of in-person trade shows will be a tailwind to accelerate purchasing decisions and contract wins.

Mach7 revealed that it had received purchase orders from Trinity Healthcare and Adventist Health as both healthcare providers implement their Mach7 solutions across FY22.

Looking ahead, the company believes its pipeline conversion could accelerate as customers begin to “normalise their staffing levels and assign budgets”.

The Mach7 share price so far in 2021

The Mach7 share price started the year strong, climbing ~30% to highs of $1.59. However, its sharp February selloff broadly coincided with the weakness across tech and growth-related sectors.

Its shares were heavily sold off after its February half-year results, with management advising that COVID-19 had caused some disruption to sales and new contracts.

However, its record third-quarter results on 12 April demonstrated a strong bounce back in financial performance. The Mach7 share price jumped 9.2% from $1.26 to $1.375 on the day.

Unfortunately, the bullishness from the quarterly report was short lived, with its shares sliding below $1.26 just a few weeks later.

The post The Mach7 (ASX:M7T) share price slips despite strong IT healthcare outlook appeared first on The Motley Fool Australia.

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