Category: Stock Market

The Galaxy Resources Limited (ASX: GXY) share price is out of form on Thursday and dropping lower.

At one stage today, the lithium miner’s shares were down as much as 6.5% to $2.80.

The Galaxy share price has since recovered a touch and is down 2% to $2.94 this afternoon.

Why is the Galaxy share price dropping lower today?

Investors have been selling Galaxy’s shares today after the market selloff overshadowed a reasonably positive fourth quarter update.

According to the release, Galaxy shipped a record total of 75,336 dry metric tonnes (dmt) of lithium concentrate during the quarter. This brought its full year FY 2020 shipments to 150,630 dmt with an average grade of 5.8%.

Another positive was the company’s quarterly sales, which increased 349% on the prior quarter. This was driven by improved customer demand, improved grades, and stronger prices.

Galaxy’s free on board (FOB) unit cash cost of lithium concentrate produced for the quarter was US$452 per dmt, which is just a touch lower than the price it is commanding at present.

Management advised that this was an 11.3% increase compared to the previous quarter and due predominantly to a 41% increase in material mined, lower recoveries, and shipping costs as sales volumes were greater than production.

At the end of the period, Galaxy’s balance sheet was in a strong position with cash and financial assets of US$215.1 million and no debt.

Outlook

Management spoke positively about the future and revealed that trading conditions are improving rapidly.

It said: “Galaxy is experiencing solid demand for its spodumene as strong global EV sales increases the demand for lithium chemicals through the value chain leading to an increase in utilisation of spodumene converters. As a result, spodumene inventory in China has declined to ~2 months of supply, down from ~ 6 months’ supply for much of 2020. The absence of Altura product in the market is also having an impact on product availability and customer sentiment.”

The company also provided investors with an update on lithium pricing.

“Galaxy has completed contractual arrangements on two shipments with 30,000 tonnes scheduled for February and 15,000 tonnes for March. Pricing has moved significantly to begin the year and currently stands at approximately US$480/dmt CIF.”

“Galaxy’s marketing plans for 2021 are for sales to broadly match production and to continue selling on a spot basis as the market recovery continues,” it concluded.

Finally, management revealed that it is aiming to reduced its FOB costs to US$360 to US$390 per tonne. If lithium prices continue to rise this year, this should put Galaxy in a position to deliver a solid profit in FY 2021.

More reading

• Why the Ioneer (ASX:INR) share price is up 16% this week
• Why these ASX shares just stormed to 52-week highs or better
• We have lift-off: Vulcan Energy (ASX:VUL) share price hits new heights
• Fundies reveal 3 top ASX shares to buy for 2021
• Are ASX lithium shares staging a comeback in 2021?

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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 Cann Group Ltd (ASX: CAN) share price is out of form and sinking lower on Thursday.

In afternoon trade, the cannabis company’s shares are down 3% to 62 cents.

Why is the Cann Group share price dropping lower?

The Cann share price has come under pressure today following the release of an underwhelming second quarter update.

According to the release, Cann recorded quarterly cash receipts from customers of just $99,000 for the three months

However, management advised that it is expecting its revenues to increase in the currently quarter due to sales contracts and purchase orders that are anticipated to ship to customers pending regulatory approvals.

This includes a shipment of 1,400 units to LYPHE Group to be used in support of Europe’s largest medicinal cannabis registry, Project Twenty21.

Thanks to a $645,000 or ~10% reduction in operating costs from the previous quarter, due mainly to lower production charges, Cann reported an operating cash outflow of $5.3 million.

This left Cann with a cash balance of $27.7 million. It also has a $50 million bank debt facility from National Australia Bank Ltd (ASX: NAB) to support the construction of its state-of-the-art medicinal cannabis production site near Mildura.

Mildura facility update

The release explains that Cann continues to work toward mobilising construction in Mildura, with site activities scheduled to begin in late February.

The company remains committed to using as many Australian workers as possible but there are some specialist roles required from overseas.

As a result, COVID travel restrictions and availability of flights continue to have some impact on the timing associated with this activity. Management is reviewing several alternative plans that will enable work to get underway at full pace.

Outlook

Management advised that customers are placing orders and indicating continued growth in demand in their various markets.

A much stronger second half is expected, with FY 2021’s projected sales revenues heavily weighted to the second half of the financial year. As mentioned above, this is due to the requirement for certain regulatory clearances to be finalised. Management is continuing to work with authorities in Australia and elsewhere to expedite those clearances.

More reading

• Up in smoke! Why ASX cannabis shares are having a bleary day
• The sector that’ll grow 480% this year, expert says
• Why ASX cannabis shares are cheering the US elections
• Why the Cann Group (ASX:CAN) share price is moving today
• Why the Cann (ASX:CAN) share price has backflipped today

Motley Fool contributor James Mickleboro 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 jailing of a former executive couldn’t come at a more inopportune time for the National Australia Bank Ltd. (ASX: NAB) share price.

The NAB share price tumbled 1.9% in after lunch trade to $23.76 as the stock was swept up in the broader market sell-off.

While the minimum four years nine months imprisonment of ex-NAB employee Rosemary Rogers isn’t a factor in the falling NAB share price, it reminds investors of the bank’s chequered past.

NAB share price tainted by scandals

I think it’s safe to say that no other ASX bank is as scandal prone as NAB. Let’s not forget it was the only major financial institution to lose both its chairman and chief executive to the Banking Royal Commission.

Those with a long enough memory might also recall the jailing of another NAB employee during the failed takeover of AMP Limited (ASX: AMP).

NAB exec’s $5.4 million crime spree

Coming back to Rogers, she was the personal assistant to two NAB CEOs and used her position to defraud the bank of $5.4 million over four years.

She used her proceeds from crime to buy property, a new BMW SUV, a boat, caravan and luxury holidays.

Rogers got her ill-gotten gains by approving fake or inflated invoices from Human Group and received kick-backs.

Human Group director Helen Rosamond is facing trial for her part in the alleged crime and denies her charges.

Don’t feel sorry for NAB

It’s shocking that a bank, which is an institution that is usually highly focused on risks, security and compliance, could be caught with its pants down.

Even the judge in Rogers’ case expressed surprise that the crime could go on for so long without detection.

Rogers was only caught because an anonymous whistle-blower sent a letter to NAB’s board.

NAB share price discount back in spotlight

What’s interesting is that the NAB share price has historically traded at a discount to its peers. This includes the Commonwealth Bank of Australia (ASX: CBA) share price, Westpac Banking Corp (ASX: WBC) share price and Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price.

This is largely due to governance concerns, if you asked me.

However, the NAB share price has recently outperformed. The stock has gained more than 30% over the past six months as investors pounced on perceived bargains.

One has to wonder if scandal-ridden NAB can keep investors onside over the longer term.

More reading

• Up in smoke! Why ASX cannabis shares are having a bleary day
• Why the Amcor (ASX:AMC) share price is having a rough start to 2021
• Brokers list the latest ASX shares to buy in this market meltdown
• Why the IGO (ASX:IGO) share price is tanking today
• ASX 200 down 2.3%: Bank shares tumble, InvoCare jumps, IOOF disappoints

Motley Fool contributor Brendon Lau owns shares of AMP Limited, Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

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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Not too many investors are having a good time today. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 2.18% to 6,633points, snapping the healthy momentum that 2021 had brought until now. One ASX sector is fairing a lot worse than the broader market. That sector is ASX cannabis shares. Cannabis shares are going up in smoke today, underperforming the ASX 200 quite handsomely.

Take Cann Group Ltd (ASX: CAN). CAN shares are getting smoked with a  2.34% loss at the time of writing to 62 cents a share. Althea Group Holdings Ltd (ASX: AGH) is fairing even worse, down 4.17% to 46 cents. Elixinol Global Ltd (ASX: EXL) is down 1.58% to 19 cents a share, and Ecofibre Ltd (ASX: EOF) is down 3.75% to $1.8 a share.

So why are ASX cannabis investors getting red eyes today?

ASX cannabis shares wake up with a hangover

It’s worth noting that the entire ASX cannabis sector has had an excellent run over the last 2 months or so. Althea blazed almost 40% higher between 3 November and 3 December last year. Cann Group was up more than 100% over a similar period.

The catalyst for that move appears to be the victory of President Joe Biden in November’s US presidential election. President Biden’s Democratic Party is far more supportive of cannabis legalisation in the US. This contrasts the stance of former president Donald Trump’s Republican Party. 

Although a significant and growing number of US states have legalised recreational cannabis, it remains illegal at the federal level. Expectations that the US government will move to lift federal restrictions have been… er, high, since Biden won office.

This month saw Democrats also win control of the US Senate which would have only added to these expectations. However, recent political machinations across the Pacific have dented hopes that this will amount to big legislative changes from Congress.

According to a recent reporting in The Washington Post, Democrats are now fearing that the Republican minority in the US Senate is gearing up to be as obstructionist as possible. That doesn’t bode well for federal cannabis legalisation, given the presence of the infamous filibuster rules of the Senate.

So perhaps today’s moves come down to investors looking for an excuse to take profits off the table after some incredible runs. High growth shares tend to sell off at a more enthusiastic pace than the broader market when the ASX is having a bad day.

More reading

• Why the Amcor (ASX:AMC) share price is having a rough start to 2021
• Brokers list the latest ASX shares to buy in this market meltdown
• Why the IGO (ASX:IGO) share price is tanking today
• ASX 200 down 2.3%: Bank shares tumble, InvoCare jumps, IOOF disappoints
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen 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 Clinuvel Pharmaceuticals Limited (ASX: CUV) share price is falling despite positive news in its quarterly report released today.

At the time of writing, the Clinuvel share price is trading at $22.0, down 1.35%.

What’s driving the Clinuvel share price today?

In its quarterly report for the period ending 31 December 2020, the biopharmaceutical company highlighted negative market conditions as a result of COVID-19 impacts.

Nonetheless, Clinuvel expanded both its commercial operation in the US and its research and development program despite the challenging conditions. The company said the expansion went ahead without the use of any equity or debt financing.

And, as hospital and medical supplies face new challenges, Clinuvel was also able to strengthen its business and balance sheet. This was underpinned by record positive cash receipts, leading to increased cash reserves.

Also during the quarter, the company progressed a number of key projects, including TGA approval of the drug Scenesse to treat adult patients with erythropoietic protoporphyria.

The commercial distribution Scenesse in the United States and Europe delivered cash receipts of $5,266,000. Net cash flow from operating activities came in at $1,293,000. This takes the rolling annual cash receipts value to $33 million, the highest since the company began commercial operations in 2016.

Cash receipts where increasing expenditures from net operating activies also increased to $4,111,000. However, the company claimed this was in order to fund future growth.

Management commentary

Commenting on the update, Clinuvel chief financial officer Darren Keamy said:

The continued performance of the group stems from our measured strategy, consistent execution, and treatment demand from both the USA and Europe, which have contributed to a new high in annual cash receipts.

Against the ongoing backdrop of economic uncertainty, and in a quarter where cash receipts are historically lower reflecting the seasonal demand, we have now been able to deliver a positive net cash result in the December quarter, the first since 2017.

About the Clinuvel share price

Despite a stream of positive company announcements, the Clinuvel share price has performed poorly over the past month, dropping 6% lower. It comes as Clinuvel remains one of the most shorted shares on the ASX.

More reading

• Lotus Resources (ASX:LOT) share price tumbles 7% today but is still up 170% in a year
• Are InvoCare (ASX:IVC) shares the ASX version of GameStop?
• Why the MoneyMe (ASX:MME) share price is climbing higher
• Why Bigtincan, Bubs, LiveTiles, & Treasury Wine shares are storming higher
• Atomo Diagnostics (ASX:AT1) posts 709% boost in quarterly cash receipts

Motley Fool contributor Daniel Ewing 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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Lotus Resources Ltd (ASX: LOT) shares are tumbling today, down 6.9% in early afternoon trade after falling as much as 13% earlier in the day. But even with the partial bounce back of the Lotus share price, its falls are still significantly greater than the 2.7% loss seen on the wider All Ordinaries Index (ASX: XAO) at time of writing.

Today’s share price moves come following the release of the company’s quarterly activities report for the quarter ending 31 December.

What did Lotus Resources report this morning?

In an announcement to the ASX this morning, Lotus reported it had completed its restart scoping study, confirming the potential for its Kayelekera Project to support long-term uranium production.

The company indicated a low initial capital cost of US$50 million (AU$66 million), with an initial capital intensity of US$21 per pound of annual production. According to the release, this would make Kayelekera one of the lowest capital cost projects ready to restart uranium production.

Lotus estimates the mine could produce for 14 years, or yield 23.8 Mlbs of U3O8. The company also sees opportunities to lower costs by reducing power and acid recovery costs and upgrading feed ore.

Lotus Resources stated it has identified two priority targets where no historical drilling has yet taken place. Both are within “easy trucking distance” of the mine.

Looking ahead, Lotus plans new exploration work in the next quarter to assess rare earths and rutile potential north of its Kayelekera Project.

Lotus completed a US$5 million capital raising during the reported quarter, with both Australian and North American shareholders taking part. As at 31 December, the company had $19.5 million of cash (restricted and unrestricted).

Lotus share price and company snapshot

Lotus Resources is a uranium and minerals explorer with a 65% interest in the Kayelekera Uranium Project, located in Malawi. According to a scoping study conducted by the company, Kayelekera has the potential to be a long-term uranium mining operation. From 2009 through to 2014 the mine produced approximately 11Mlb of uranium.

Despite today’s sharp fall, the Lotus share price remains up 4% in 2021. Since this time last year, Lotus shares are up an eye-popping 170%. As for investors who had the foresight (or luck) to buy on 24 March following the COVID inspired selloff? They’ll be sitting on a share price gain of 575%.

More reading

• Are InvoCare (ASX:IVC) shares the ASX version of GameStop?
• Why the MoneyMe (ASX:MME) share price is climbing higher
• Why Bigtincan, Bubs, LiveTiles, & Treasury Wine shares are storming higher
• Atomo Diagnostics (ASX:AT1) posts 709% boost in quarterly cash receipts
• Up 400% in 2021, why the Hawkstone (ASX:HWK) share price is rocketing 28% higher

Motley Fool contributor Bernd Struben 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 S&P/ASX 200 Index (ASX: XJO) may be sinking notably lower on Thursday but the same cannot be said for the InvoCare Limited (ASX: IVC) share price.

In morning trade, the funerals company’s shares were up as much as 10% to $12.65.

The InvoCare share price has since given back some of these gains but is still up a solid 6.5% to $12.25 at the time of writing.

Why did the InvoCare share price rocket 10% higher?

The catalyst for the impressive gain by the InvoCare share price is one of the more stranger ones you’ll see this year.

As you may have read here earlier, traders from Reddit have been rushing in to buy GameStop shares this week in an attempt to crush short sellers and drive its share price significantly higher via a short squeeze.

A short squeeze is what happens when short sellers have to close their positions in a hurry because a share price is going higher. By buying back shares to close positions, the short seller adds to the buying pressure and helps drive the company’s shares even higher.

The GameStop trade has been a huge success for Redditors, with the GameStop share price rocketing higher, leaving hedge funds to nursing huge losses.

But what about InvoCare?

It appears as though short sellers have been closing their positions in InvoCare in a hurry today amid concerns that Australian Redditors could make the funerals company their GameStop.

According to the AFR, Goldman Sachs named InvoCare as the ASX share most at risk of a short squeeze due to its high proportion of shares shorted compared with its average daily volume traded.

Goldman notes that it would take 33 days to unwind all the shorts based on its average daily trading volume. Given just how much buying that would involve and the limited supply, this would almost certainly drive the InvoCare share price notably higher.

It certainly appears to be a dangerous time to be a short seller right now.

More reading

• ASX 200 down 2.3%: Bank shares tumble, InvoCare jumps, IOOF disappoints
• Here are the 10 most shorted shares on the ASX
• Here are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• Here’s why the InvoCare (ASX:IVC) share price is on the rise today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended InvoCare 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 MoneyMe Ltd (ASX: MME) share price is climbing higher today. This comes after the company released its second-quarter trading update for the 2021 financial year.

During the first 30 minutes of trade, the MoneyMe share price catapulted to an intraday high of $1.475. However, some profit taking has led the digital credit company’s shares to retrace back to $1.45, up 0.4%.

Record results

The MoneyMe share price is reversing the weakening ASX market trend today after reporting a positive set of numbers.

For the period ending December 31, MoneyMe delivered a record $69 million of originations. This amount reflects a 52% increase on the prior quarter and a record $27 million lift on the prior corresponding period. The company said that its closing gross loan book stood at $168.2 million at the end of the calendar year.

Driving the growth trajectory, MoneyMe is continuing attract new customers through its diversified portfolio mix. Just recently, the company launched the List Ready, Rent Ready, and MoneyMe+ products. These new products already accounts for 9% of total book value.

Other established originations include Personal Loans and Freestyle, which represent 54% and 37% of the entire portfolio, respectively. MoneyMe stated that expanding its current offering is the way forward to seize the addressable market opportunity.

Overall, the group achieved revenue of $11.7 million for the second-quarter. The company advised that significant cost of fund reductions is being met. This follows the refinancing of the Velocity warehouse facility announced in November, with the business now using the new Major Bank warehouse facility.

In addition, MoneyMe highlighted that it is focusing on improving its rolling net charge-off rates. It revealed that it has reduced this metric by 4% in the second-quarter, while attaining an average Equifax score to 638. The latter is a credit scoring model, with any number between 580 to 669 considered as fair.

Words from management

MoneyMe Managing Director and CEO, Mr. Clayton Howes, touched on the company’s performance, saying:

We are incredibly pleased with MoneyMe’s results for the quarter, and origination momentum for the different products is setting the business up for high and profitable balance sheet growth. The 52% increase in origination volume reflects exceptional profitable growth and it is exciting to see the new funding warehouse facility delivering a step change to funding costs and increased capacity for growth.

With our core and more recently launched products resonating so well with Generation Now, the innovation pipeline is continuing at pace as we continue to build for massive scale and product diversification opportunities.

About the MoneyMe share price

The MoneyMe share price is down about 4% when looking at a 12-month historical chart. Although the company’s shares dipped to an all time low of 50 cents, MoneyMe shares began their accent in the months following.

From September onwards however, the MoneyMe share price has stabilised around the $1.45 to $1.50 mark.

On the current valuation grounds, the company has a market capitalisation of roughly $248 million.

More reading

• Why Bigtincan, Bubs, LiveTiles, & Treasury Wine shares are storming higher
• Atomo Diagnostics (ASX:AT1) posts 709% boost in quarterly cash receipts
• Up 400% in 2021, why the Hawkstone (ASX:HWK) share price is rocketing 28% higher
• Why the Amcor (ASX:AMC) share price is having a rough start to 2021
• Brokers list the latest ASX shares to buy in this market meltdown

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It has been a very disappointing day of trade for the S&P/ASX 200 Index (ASX: XJO) on Thursday. In afternoon trade the benchmark index is down 1.95% to 6,649.2 points.

Four ASX shares that have not let that hold them back today are listed below. Here’s why they are storming higher:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price has climbed 4% to $1.11 following the release of its second quarter update. Bigtincan continued its strong form during the quarter and delivered annualised recurring revenue (ARR) of $48.4 million. This represents growth of 50% over the prior corresponding period. Management revealed that this comprised organic ARR of $40 million (up 42.9%) and ARR of $8.4 million from recently completed acquisitions.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 7.5% to 65 cents after reporting an improvement in its performance during the second quarter. For the three months ended 31 December, Bubs reported gross revenue to $12.8 million. While this was a 12% reduction on the prior corresponding period, it was up 36% on its first quarter gross revenue. Bubs also revealed improvements in the corporate daigou channel during the quarter.

LiveTiles Ltd (ASX: LVT)

The LiveTiles share price has jumped 5% to 22 cents following the release of its second quarter update. According to the release, as of the end of December, LiveTiles’ ARR had increased 10.2% year on year to $58.1 million. In constant currency, LiveTiles’ ARR would have grown 23% year on year to $64.7 million. This was driven by customer additions and an increase in average ARR per customer.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is up 5% to $9.74 despite there being no news out of the wine company. However, a sharp pullback in the Australian dollar may have given its shares a boost. A weaker currency could give its wine exports a lift.

More reading

• Why the LiveTiles (ASX:LVT) share price is avoiding the market selloff
• Here’s why the Bubs (ASX:BUB) share price is surging 10% higher
• Why the Bigtincan (ASX:BTH) share price is jumping higher today
• Will Joe Biden’s election help an Australia-China reset?
• 4 growing small cap ASX shares to watch

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 LIVETILES FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO, BUBS AUST FPO, and Treasury Wine Estates Limited. The Motley Fool Australia has recommended LIVETILES 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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The Atomo Diagnostics Ltd (ASX:AT1) share price dipped yesterday and has remained flat today after the medical device company released its quarterly activity report for the period ended 31 December 2020.

Atomo designs blood-based rapid diagnostic test (RDT) devices. Through the company’s device portfolio, it aims to provide technology that simplifies the blood testing process and reduces errors. The company offers options for both medical professionals as well as for people who require self-testing to manage their health.

Quarterly activity report highlights

According to yesterday’s quarterly activity report, the company brought in a total of $5.8 million in cash receipts for the first half of the FY21. This includes $2.8 million gained during the second quarter, up a whopping 709% from $346,000 in the previous corresponding period.

Sales for the second quarter of FY21 (unaudited) came in around $2.0 million. The company also advised that an additional 259,200 units shipped to one of its US-based customers, Access Bio, aren’t reflected in revenue to date but will be booked as revenue in the third quarter FY21.

Across North America, Europe and Australia, Atomo continues to progress its rapid testing coronavirus technology. This involves activities like pursuing sales opportunities, finalising submissions and gaining associated approvals.

Additionally, the company continues to progress supply agreements pertaining to its HIV tests. New business is expected in the emerging global health market moving forward.

Positioning for growth

According to Atomo’s co-founder and managing director John Kelly, the company is positioning itself for growth. Mr Kelly believes that the current need for coronavirus tests around the world presents significant opportunity for Atomo.

During the quarter, Atomo launched its TGA-approved AtomoRapid COVID-19 antibody test for sale in the Australian market. Total sales for the product were $394,000 across a range of professional testing and corporate channels.

Mr Kelly goes on to note the Biden administration’s recent $50 billion commitment to fund testing across the US. As a result of this, Mr Kelly expects the coronavirus will continue to play an important part of Atomo’s business “for a number of years”.

Atomo share price snapshot

At the time of writing, the Atomo share price is sitting at 29.5 cents per share, giving the company a current market capitalisation of $166.4 million. The Atomo share price has stayed relatively flat in 2021 so far, and is down 24.36% on this time last year. 

More reading

• Up 400% in 2021, why the Hawkstone (ASX:HWK) share price is rocketing 28% higher
• Why the Amcor (ASX:AMC) share price is having a rough start to 2021
• Brokers list the latest ASX shares to buy in this market meltdown
• Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today
• Why IOOF, Kogan, Openpay, & Woodside shares are dropping lower

Motley Fool contributor Gretchen Kennedy 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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