The Latin Resources Ltd (ASX: LRS) share price is heading south today following the company’s latest announcement to the ASX.

At the time of writing, the lithium explorer’s shares are selling at 17 cents, down 10.53%.

What did Latin Resources announce?

Latin Resources shares are sinking regardless of the company’s positive drilling results at the Bananal Valley Prospect.

In its release, Latin Resources advised it has recorded the thickest intersection to date from its ongoing drilling campaign.

As such, management believes that the results could represent a significant new lithium discovery at the Salinas Lithium Project. Both diamond drill holes returned the following:

• 4.25 metres at 1.32% Li2O from 125.4 metres (SADD005)
• 4 metres at 1.36% Li2O from 159.1 metres (SADD005)
• 21.1 metres at 1.2% Li2O from 208.8 metres (SADD006)

While the presence of thick high-grade lithium bearing pegmatites has been confirmed, the company will commence a systematic drilling campaign. This will be aimed at providing sufficient data to undertake a maiden mineral resource estimate for the Salinas Lithium Project.

The resource definition drill out is expected to comprise around 25,000 metres of diamond drilling. This will involve testing a full 800 metre strike length of the known high-grade pegmatites.

In addition, Latin Resources stated that drilling rig access to the Monte Alto site has now been established.

A planned 2,000 metre drilling campaign will test the strike extent of the outcropping spodumene bearing pegmatites. Coring operations are expected to begin any day now.

Management commentary

Latin Resources managing director, Chris Gale commented:

We continue to receive exceptional assay results from our Bananal Valley Prospect. This continues to get more encouraging every day.

We are also very excited to be commencing drilling at our new Monte Alto Prospect. Our mapping and outcrop sampling in this area has shown us that we have thick, high- grade lithium pegmatites outcropping over a considerable strike extent…

We are planning an initial 2,000m of drilling in two stages at Monte Alto and assay results should start flowing in May.

With the company recently raising $35,000,000, we have now expedited the drilling program by commencing our 25,000m resource definition drilling campaign at Bananal Valley.

With drilling now on multiple fronts, and more rigs on the way to site, we have really stepped up our pace in Brazil to fast track our pathway to an initial JORC Mineral Resource estimate.

About the Latin Resources share price

The Latin Resources share price has accelerated in the past year, gaining more than 250%.

While renewed investor sentiment within the battery industry has helped support the share price, the company has been making tailwinds.

Based on the current share price, Latin Resources commands a market capitalisation of more than $286 million.

The post Latin Resources share price sinks 10% despite lithium project update appeared first on The Motley Fool Australia.

More reading

• Why is the Latin Resources share price powering ahead today?
• Here’s why the Latin Resources share price is on ice today
• Latin Resources share price surges 11% on ‘very positive’ lithium news
• Why did this ASX lithium share soar 18% today?
• Why Eagers Automotive, Firefinch, Latin Resources, and Piedmont Lithium are rising today

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 Bitcoin (CRYPTO: BTC) price is charging ahead, up 3.8% over the past 24 hours.

One Bitcoin is currently worth US$40,526 (AU$56,365).

That gives the world’s original crypto a market cap just north of US$770 billion, according to data from CoinMarketCap.

Why the big leap higher?

The Bitcoin price looks to be following the lead of US tech shares, which rebounded yesterday (overnight Aussie time) to send the Nasdaq up 1.3%.

Despite the overnight bump, Bitcoin remains down 15.8% in 2022, just edging out the 17.8% year-to-date loss posted by the tech-heavy Nasdaq.

And while crypto investors may be cheering the 3.8% boost in their holdings (valued in US dollars), some analysts are predicting the digital token could be looking at a 19% or more slide from current prices.

What analysts are saying about the Bitcoin price

In a note released prior to today’s 3.8% lift in the Bitcoin price, Mark Newton, a technical strategist at Fundstrat, said (quoted by Bloomberg), “Bitcoin looks to be breaking a pivotal minor two-month trend on Friday’s pullback that likely causes weakness down to test January lows.”

Newton forecasts the Bitcoin price will retrace to US$36,300. If it falls below that price, he said this “should lead to a full retest of US$32,950 without too much trouble”.

A major potential headwind for the Bitcoin price is the outlook for interest rates. While the RBA may hold off for another month or two, the US Federal Reserve has no such intentions, with numerous 0.50% rate hikes expected in the months ahead.

According to analysts at Nydig:

As it becomes more valuable to hold dollars, some investors may reallocate from Bitcoin or gold to the dollar. Like the negative correlation of Bitcoin to the dollar, the negative correlation of Bitcoin to real rates has only emerged in the last couple of years.”

Commenting on why the Bitcoin has been languishing in a trading range largely between US$35,000 and US$45,000 this year, James Malcolm, head of crypto research at UBS said (quoted by Bloomberg), “The vast majority of the population seem to have little interest in crypto because it’s too complicated, too volatile, too strange. So in a sense, we’re stuck at the moment.”

So, how does the Bitcoin price get out of its trading rut?

“It either needs new people or it needs existing players to dedicate an increasingly large slice of resources to the industry,” Malcolm said.

The post Bitcoin price leaps 4% but is the leading crypto due for a big retrace? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. 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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As any investor in ASX tech shares would know, the last few months have proven to be a rough ride. Since the start of 2022, the S&P/ASX All Technology Index (ASX: XTX) has lost a painful 24% or so. That includes the hefty 1.27% drop we’ve seen today so far. And many individual ASX tech shares have fared far worse.

Take Altium Limited (ASX: ALU). Altium shares are now down almost 28% over the year to date. Appen Ltd (ASX: APX) goes one step further with its near-40% slide this year so far. And Zip Co Ltd (ASX: ZIP) has given its investors a painful 75.5% drop since the start of the year.

Today is no different. This Tuesday has seen the S&P/ASX All Technology Index (ASX: XTX) lose another 1.27% so far. So with such losses already under the belt in 2022, many investors might be wondering when ASX tech shares will hit their bottom.

Well, according to reporting in the Australian Financial Review today, ASX tech investors should keep an eye on the US markets.

It’s quarterly reporting season over in the US right now. Why does this matter? Well, ASX tech shares, in particular, often seem to take their cues from their US counterparts. So it might come as no surprise that the struggles of ASX tech shares have occurred almost in parallel with the US tech sector over the year so far.

US markets to boost ASX tech shares?

We’ve already seen some disastrous results, such as the ones from Netflix Inc (NASDAQ: NFLX). These sensationally saw the streaming giant lose close to 40% of its value last week. So it’s perhaps no wonder our tech shares have been getting an extra dose of the jitters ever since.

But, according to the AFR report, investors hoping to see a bottom in the fall of ASX tech shares should keep watching the US markets this week. Over the next few days, we will see Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms Inc (NASDAQ: FB), and Amazon.com Inc (NASDAQ: AMZN) report their quarterly earnings. Add in Australian software company Atlassian plc (NASDAQ: TEAM).

The AFR report quoted Wedbush analyst Dan Ives on the matter. Ives stated that he reckons Apple and Microsoft, in particular, will help investors prevail through what he sees as a “white knuckle moment” in the markets right now. Ives is expecting both Microsoft and Amazon to report strong growth in their cloud products, and Apple to report strong expected numbers from China.

This strong showing, he predicts, will help Wall Street see that “the ‘feared slowdown’ is more bark than bite at this point in the cycle”.

No doubt that rosy prediction will be welcomed by many ASX tech share investors right now. But we shall have to wait and see if Ives’s predictions are accurate.

The post Have ASX tech shares finally reached the bottom? appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns Alphabet (A shares), Amazon, Apple, Atlassian, Meta Platforms, Inc., and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Altium, Amazon, Appen Ltd, Apple, Atlassian, Meta Platforms, Inc., Microsoft, Netflix, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Netflix. 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 Russian invasion of Ukraine this year suddenly brought into focus a topic that the developed world has not thought about for many decades: food security.

For example, the two countries combined provide more than a quarter of the world’s wheat.

Suddenly, western nations have had to deal with rising prices of staples and how that can lose votes in the polling booth or even ferment social unrest.

Many countries are even reviewing their own agricultural self-sufficiency.

As such, it could be worth taking a look at some ASX shares that might benefit from this renewed focus on agriculture.

“After a lost decade post-financial crisis, things are looking up for the agricultural sector,” Firetrail Investments analysts said in a recent memo to clients.

“The prices of soft commodities like corn and wheat increased over 20% in 2021, and this was before the Ukrainian conflict. Everything from fertilisers to crop chemicals and companies exposed to the sector are enjoying their most buoyant outlook in years.”

The team at Firetrail have a couple of stocks in that area that they expect to continue their outperformance:

‘Favourable seasonal conditions and tight global supply chains’

Nufarm Ltd (ASX: NUF) supplies pesticides and seeds to the agricultural sector.

Firetrail analysts told its clients in a memo that this holding has had a bumper start to 2022.

“Shares rose 30% in the quarter, buoyed by an earnings upgrade and a positive investor day that showcased the company’s longer term growth potential.”

The team also reckoned the stock price had cashed in on “general positive sentiment” for agricultural players after the breakout of war in Ukraine.

Despite the price climb, Firetrail is convinced there’s plenty of potential left in Nufarm shares.

“We see further upside from a continuation of favourable seasonal conditions and tight global supply chains.”

According to CMC Markets, 5 of 10 analysts currently rate Nufarm as a strong buy. One says moderate buy while the remaining 4 label it as hold.

Only on Monday, Nufarm chief executive Greg Hunt confirmed the company has “nascent operations” in both Ukraine and Russia.

“Our first priority has been to ensure our people in both countries are safe and supported,” he said.

“Secondary to the safety of our people, we are focused on ensuring the security of supply for our customers and continue to monitor developments closely and prepare accordingly.”

Hunt announced that the business would raise a provision of $30 to $40 million to protect itself against the “current uncertain situation” in eastern Europe.

‘Significant discount to peers’

Incitec Pivot Ltd (ASX: IPL) provides fertiliser for the farming industry.

The Firetrail Absolute Return Fund enjoyed a nice 17% rise in the Incitec share price in the first quarter, attributed to “a continued increase in fertiliser commodity prices”.

“This was borne largely by the Ukraine conflict and the region’s importance to global fertiliser exports.”

Similar to Nufarm, Firetrail analysts reckon there’s ample gains remaining.

“Despite continuing fundamental tailwinds and strong recent share price performance, Incitec still trades at a significant discount to peers and we see further upside moving forward.”

Burman Invest chief investment officer Julia Lee last month also rated Incitec Pivot shares as a buy.

“You know I’ve been a fan of fertiliser for a while, and one of the major costs of fertiliser is energy prices,” she said.

“As oil prices rise, you usually see fertiliser prices rising.”

Incitec is very popular among professionals investors, with 9 of 11 analysts rating it as a strong buy, according to CMC Markets.

The post Food anxiety: experts pick 2 ASX shares riding the agriculture boom 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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Tuesday is proving to be one of the worst days for the broader market this year, with the All Ordinaries Index (ASX: XAO) plummeting 1.89%, taking many share prices down with it.

But one share has managed to cling to a life raft, gaining 5% despite the market’s slump.

The share price of the All Ordinaries’ Vulcan Steel Ltd (ASX: VSL) is rising on the back of a trading update and guidance upgrade. Right now, it’s 5.03% higher than its previous close, trading at $9.60.

Let’s take a closer look at what’s buoying the industrial product distributor’s stock today.

This All Ordinaries share is taking off on Tuesday

All Ordinaries share, Vulcan Steel is on the up and up on Tuesday following the company’s latest update.

The company announced that its revenue for the 9 months ended 31 March is up 34% year on year. It’s come in at approximately NZ$700 million (around $644.7 million).

The company’s overall sales volumes have also jumped 5% this year.

Its steel segment has been the biggest driver of the increase. It’s sporting a 42% increase in revenue.

Meanwhile, the company’s metals segment’s revenue has recorded a 21% year on year boost.

In response to its higher revenue, as well as a particularly strong period of trade from February through to early April, the All Ordinaries share has upped its financial year 2022 guidance.

Vulcan Steel previously said it expected to bring in between NZ$150 million and NZ$160 million (approximately $138 million to $147 million) of pro forma earnings before interest, tax, depreciation, and amortisation (EBITDA) and prior to IFRS this financial year.

It also predicted it would report between NZ$97 million and NZ$104 million (approximately $89 million to $96 million) of pro forma net profit after tax (NPAT) prior to IFRS.

Now, the company expects it will report pro forma EBITDA of $212 million to $218 million (approximately $195 million to $201 million) pre-IFRS. The boost represents a 23% increase on its previous guidance.

Its NPAT is now expected to come to between NZ$140 million and NZ$144 million (approximately $129 million to $133 million), pre-IFRS. That represents a 24% increase.

What did management say?

Vulcan Steel managing director and CEO, Rhys Jones commented on the news driving the All Ordinaries share upwards today, saying:

Despite disruptions caused by COVID-19 and adverse weather in Australia, Vulcan’s operations and financial performance have remained strong in the past three months.

The geopolitical uncertainty in Europe has added more volatility to global supply chains and product prices for many industries including the steel sector.

Vulcan Steel share price snapshot

Today’s gain has boosted the All Ordinaries share into the year to date green.

Right now, the Vulcan Steel share price is 1% higher than it was at the start of 2022.

It has also gained nearly 34% since it floated on the ASX in November.

The post In a sea of red, this ASX All Ordinaries share is surging 5%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Could these ASX shares be set to benefit from increasing Russian sanctions?

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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ASX 200 mining shares are struggling today amid falling commodity prices, including iron ore.

The big three ASX 200 mining giants — Fortescue Metals Group Ltd (ASX: FMG), BHP Group Ltd (ASX: BHP), and Rio Tinto Ltd (ASX: RIO) — are all sliding today.

Let’s take a look at what’s at play.

Commodity prices suffer

The BHP share price is down 5.24% at the time of writing while Fortescue is 6.64% lower and Rio Tinto is 4.13% in the red.

All three are all iron ore explorers. On global markets overnight, the iron ore price has fallen 6.19% to US$136.50 per tonne, Trading Economics data shows. Aluminum prices have also slid 4.64%.

Meanwhile, iron ore on the Chinese Dalian Commodity Exchange (DCE) fell nearly 11%, Reuters reported.

Commenting on the slide, SinoSteel Futures analyst Cheng Peng said:

The plunge was driven by the domestic COVID-19 situation, as market expectations on demand failed, while raw material prices lost support on state planner’s output controls.

Meanwhile, analysts predict the BHP share price could be a buying opportunity, as my Foolish colleague James reported today.

Last week, Morgans kept its add rating on the company and lifted the price target to $54.30. This represents an 18% upside on the current share price of $45.93 at the time of writing.

Meanwhile, the Goldman Sachs equity desk handled a transaction of $215 million in Fortescue shares on Tuesday, the Australian Financial Review reported. The trade was rumoured to have been at $19.95 a share, a nearly 6% discount on Friday’s closing price of $21.22.

The post Sinking iron ore price sends ASX 200 mining shares tumbling appeared first on The Motley Fool Australia.

More reading

• ASX 200 stocks dive 2.4% in worst trading day since Ukraine crisis hit
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• Can Rio Tinto shares really pay a dividend yield of 18% in FY22?
• BHP share price sinks 6%: Is this a buying opportunity?
• ASX 200 mining stocks just ended a dire week of trade. What’s next?

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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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.

What happened

Shares of Netflix (NASDAQ: NFLX) continued to drop this morning as the leading streamer is still feeling the consequences of a disastrous earnings report last week. The first-quarter update included a surprise loss of 200,000 subscribers, and the company said it expected to lose another 2 million paying members in the second quarter.

Negative reports in a number of popular financial media outlets over the weekend helped the drag the stock lower today.

As of 11:43 a.m. ET, the stock was down 3.1%.

So what

Articles in Barron’s, Bloomberg, and The Wall Street Journal portrayed a company in disarray following the crash in the stock.

A Bloomberg story said that employee morale is at its lowest point in at least several years. The company had long enjoyed something of a bulletproof image on Hollywood and on Wall Street, but that seems to have shattered in the wake of the earnings report. Employees are also dejected after seeing stock options evaporate that were valued in the hundreds of thousands of dollars for some.

Management now seems to scrambling to adjust its strategy, planning to rein in content costs and focus on quality over quantity. That move seems to be a long time coming, as Netflix’s content budget is expected to clock in around $18 billion, far more than any of its competitors. With competition on the rise, the company needs to be more judicious with its spending.

Now what

Netflix stock has now lost about 40% since the earnings report and is off roughly 70% from its peak last November. While the company does need to make some changes, it’s a mistake to think that Netflix is a broken company.

Co-CEO Reed Hastings has proven himself to be a visionary thinker in video entertainment, and the company’s 220 million subscribers give it an advantage over the streaming debutantes. The company still has plenty of levers to pull to improve its performance, including launching an advertising tier, but being more scrupulous about content costs is probably the best first step it can make. 

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

The post Why Netflix stock was falling again today appeared first on The Motley Fool Australia.

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Jeremy Bowman owns Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netflix. The Motley Fool Australia has recommended Netflix. 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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Despite the All Ordinaries (ASX: XAO) being down today, the Airtasker Ltd (ASX: ART) share price is exploding higher.

This comes after the company provided a quarterly business update to the ASX prior to market open.

The online marketplace company’s shares are swapping hands at 54 cents apiece, up 12.50%.

In contrast, the broader ASX index is trading at 7,625.6 points, down 1.84%. This follows widespread fears about China’s COVID-19 situation.

Airtasker records strong Q3 growth

Investors are bidding up the Airtasker share price following the company’s robust performance for the third quarter of FY22.

According to its release, Airtasker reported gross marketplace volume (GMV) of $51.5 million, up 24.9% on the prior corresponding period.

In addition, revenue surged to $8.6 million, an increase of 21.2% over Q3 FY21.

The group achieved a positive operating cash flow of $1 million, with $32.8 million cash in the bank.

Management lauded the result, despite macro headwinds including COVID-19 and weather-related events impacting its major marketplaces.

The bumper performance was driven by investment in new-city-level marketplaces in both the United States and the United Kingdom.

In particular, the United States marketplace grew 90% over the previous quarter as it recorded increased job opportunities (posted tasks).

Across the United Kingdom marketplace, GMV accelerated 138% over the prior comparable period due to season demand.

Airtasker co-founder and CEO, Tim Fung touched on the company’s result, saying:

I’m super pleased to share another strong quarter of growth for Airtasker against a backdrop of tough macro impacts including unprecedented rainfall and horrendous flooding.

Posting positive cashflow from operations of $1 million demonstrates the strength of our underlying business model and with a strong balance sheet, I’m excited to continue expanding into new segments of the local services economy in Australia whilst replicating the growth we’ve seen in our Australian marketplaces across the US and UK.

About the Airtasker share price

Over the past 12 months, the Airtasker share price has lost almost 60%, with year to date down 36%.

It’s worth noting that regardless of today’s rise, the company’s shares hit an all-time low of 46 cents last Thursday.

Based on valuation grounds, Airtasker commands a market capitalisation of roughly $224.79 million.

The post ‘Super pleased’: Why the Airtasker share price is rocketing 12% 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 recommended Airtasker 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 Bubs Australia Ltd (ASX: BUB) share price is down 7.14% after the infant formula company announced its quarterly update for the three months to 31 March 2022.

The business announced the third consecutive quarter of year-on-year growth, pointing to “positive growth momentum” across each of its business pillars. These are its domestic, China, and international markets. In particular, Bubs reported “exceptional growth” in its domestic retail business.

Bubs FY22 third-quarter update

Here are some of the main highlights from the Bubs update today:

• Third-quarter gross revenue of $17.6 million, up 49%
• Domestic retail infant formula growth of 108%
• Bubs’ Australian market share reached 4.2%, which is a company record
• Number one status in the goat infant formula brand, with a market share of 42.1%
• Deloraine Dairy Solutions revenue jumped 560%, contributing 30% of quarterly sales
• Total Chinese (daigou and cross-border e-commerce) sales increased by 8%
• International gross revenue grew 153%, with Bubs-branded products revenue growth of 63%
• USA retail footprint expands in 254 Smart & Final stores, and 130 Buy Buy Baby stores

Other highlights

Bubs has been busy in the last few months with strategic moves.

The company has launched a new product which it calls Bubs Supreme. This is A2 beta-casein protein infant formula. Bubs calls this product its most ambitious innovation project to date. The company says it enables it to address a much larger share of the infant formula market. It will be on the shelf of 500 Coles Group Ltd (ASX: COL) supermarkets from May 2022.

Bubs’ lead corporate daigou distributor Willis Trading has committed to an opening purchase order valued at $32.9 million. The first containers are already shipped and being sold in China from April.

Willis Trading has been Bubs’ largest single customer in FY21 and FY22. It has also been the lead distributor for both Bubs and CapriLac brands in the corporate daigou channel.

During the quarter, Bubs entered into an equity-linked strategic alliance with Willis Trading. The agreement is conditional on product purchase milestones of at least $50 million in FY22 and $80 million to $120 million in FY23.

Outlook and Chinese lockdowns

Bubs said it’s working with its partners to ensure that Chinese consumers are still able to access its products. Further, it said its “unique restructure” of supply chain and logistics over the last two years has enabled the business to maintain and accelerate growth momentum.

In terms of the outlook, the company expects to deliver modest half-on-half growth in the second half of FY22. Accelerated revenue expected from the rollout of Bubs Supreme is set to be realised in the fourth quarter.

The company acknowledged that continuing macroeconomic uncertainties and ongoing COVID-related supply chain disruption could result in “transitory variability”.

Bubs share price snapshot

The Bubs share price is down 4.21% in 2022 so far but up more than 7% over the past year.

The company has a market capitalisation of $278 million based on its current share price.

The post Bubs share price sinks 7% despite quarter of ‘exceptional growth’ appeared first on The Motley Fool Australia.

More reading

• Are these 2 compelling ASX growth shares buys in April 2022?

Motley Fool contributor Tristan Harrison 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 and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended BUBS AUST 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 Mineral Resources Limited (ASX: MIN) share price is taking a beating today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining services company closed at $60.70 on Friday and are currently trading for $54.98. That puts the Mineral Resources share price down 9.4%.

So, what’s going on?

Resource outlook clouded by China’s slowing growth

First, it’s not just the Mineral Resources share price that’s under pressure today.

At time of writing the S&P/ASX 200 Resource Index (ASX: XJR) is down 5.2%.

This comes amid a global selloff in commodities and energy.

Copper, as one example, is down 3.3% overnight. That brings the red metal down 5.2% since this time last week.

Iron ore, Australia’s top export earner and a primary focus for Mineral Resources is taking an even bigger hit, down 9.7% to $US135.75 per tonne.

Meanwhile, energy producers haven’t been spared either, with Brent crude oil down 9% over the past week.

Resource prices are sliding amid fears that China’s economic growth will take a big hit from the nation’s zero-virus policy. As COVID-19 continues to spread, it appears that Shanghai may be in for extended lockdowns, hitting supply chains and crimping demand for commodities.

What else is impacting the Mineral Resources share price today?

Mineral Resources could also be under pressure following an ASX announcement this morning.

According to the release, the mining services company intends to offer US$1 billion of Senior Unsecured Notes. Mineral Resources said the notes will only be available to investors “reasonably believed to be qualified institutional buyers”.

The company plans to use the cash proceeds for “general corporate purposes, including for capital expenditures”.

Mineral Resources share price snapshot

With today’s intraday drop factored in, Mineral Resources shares are down 5.8% so far in 2022. By comparison, the ASX 200 is down 3.3% year-to-date.

Taking a step back, longer-term investors will have little to complain about.

Over the past 5 years, the Mineral Resources share price has gained 416%.

The post Why is the Mineral Resources share price sinking 9% 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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