Shares in AGL Energy Ltd (ASX: AGL) are in the green today, up 2.4% trading at $7.45 at the time of writing.

After a difficult 12 months, AGL shares have soared in 2022 alongside the broad commodities sector as investors reshuffle capital and the macro-narrative continues to play out.

However, the energy company’s shares dipped 8% in February, and are down another 4% in the past month of trade as well (shown below).

Is AGL a buy right now?

From what it appears, analyst sentiment is quite mixed on the stock. Exactly 40% of brokers have it as a buy, whereas 50% say to hold or are neutral.

For example, analysts at JP Morgan are bullish on the company and reckon it has the legs to grow tall in 2022.

The broker likes AGL over other names in the energy space, and is overweight on the company due to its robust fundamentals and the market’s outlook.

“Our analysis suggests significant upside to AGL but less so for Origin [Energy],” the broker told clients in a recent note.

“Applying the average customer value of A$956/customer to AGL’s 4.5 million retail customers generates a value of A$4.3 billion,” it added.

“Adding A$2.9 billion for non-baseload assets (predominately hydro) and A$2.4 billion for Accel less net debt generates a total value of A$10.96/share.”

While the broker has its concerns over the AGL demerger, it still believes there is “potential for corporate appeal” in the name, and hence retains its overweight stance on an $8.75 per share valuation.

It is joined by the team at Credit Suisse which rates AGL a buy with an $8.20 per share price target set around two weeks ago.

Meanwhile, analysts at Barrenjoey Markets initiated coverage of AGL today with a neutral, rating an $8.10 price target on the stock.

That’s below the consensus price target of $8.22 per share, according to Bloomberg data.

AGL’s consensus valuation has crept down with its share price in the last 12 months from $18.70, but curiously, more analysts today rate it as a buy than a year ago.

AGL share price snapshot

In the last 12 months, the AGL share price has collapsed more than 28% and is now almost 4% in the red this past month.

However, this year to date, it has climbed more than 20% and is in the green for the previous 5 days of trading.

The post Down 8% since February, is the AGL (ASX:AGL) share price a buy? appeared first on The Motley Fool Australia.

More reading

• Own AGL shares? Here’s why the company has been making news this week
• Are AGL (ASX:AGL) shares worth buying prior to the planned demerger?
• 3 high-dividend ASX shares that are TRAPS: expert
• Why this broker says buy Origin (ASX:ORG) shares instead of AGL
• Could Origin Energy (ASX:ORG) shares be next on the investment agenda for Mike Cannon-Brookes?

Motley Fool contributor Zach Bristow 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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Analysts believe Firefinch Ltd (ASX: FFX) is significantly undervalued at its current market capitalisation. At the time of writing, the Firefinch share price is 90 cents, a 1.13% gain on the day. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.07%.

Firefinch is a gold explorer and a lithium developer working on the Morila gold mine and Goulamina lithium project in Mali, West Africa.

Let’s take a look at why one broker sees huge upside for the Firefinch share price.

Firetech undervalued

Analysts at J Capital Research believe the Firefinch lithium asset Goulamina is “underappreciated” and gold mine Morila “significantly undervalued”.

Commenting on their view of the company, analysts said:

We believe Firefinch should be trading at a valuation between $1.68 and $2.28 billion. With the current market cap of $990 million, the upside is between 70% and 130%.

We believe Firefinch’s under-appreciated lithium asset, Goulamina, alongside its operational gold mine, Morila, are significantly undervalued based on the current market capitalisation. We view both the gold and the lithium project as de-risked as they are operational and fully funded respectively.

J Capital believes Firefinch’s Goulamina lithium project should be worth at least $1.4 billion. Analysts said:

When we compare the Goulamina lithium project to the market value of eight other lithium companies with hard-rock lithium projects, we believe Goulamina is worth at least double what the market currently values it at.

Further, analysts valued Firefinch’s gold venture Morila between $275 and $430 million. After engaging a team of geologists, J P Capital predicted the mine could produce between 100,000 and 156,000 ounces each year. Analysts said:

We have totally discounted any potential upside from an underground mine. This is more conservative than street analysts, who believe Morila is worth double our low-end target.

Firefinch share price snapshot

The Firefinch share price has exploded 316% in the past 12 months, while it has climbed 3.5% this year to date.

Over the past month, Firefinch shares have jumped 35% and are 11% higher over the past week.

Since the J Capital report, the company’s market cap has increased to about $1.04 billion.

The post Could the Firefinch (ASX:FFX) share price have 130% upside? Broker weighs in appeared first on The Motley Fool Australia.

More reading

• Is this boosting the Firefinch (ASX:FFX) share price higher today?
• Get ready! The ASX shares set for a decade-long tailwind: expert

Motley Fool contributor Monica O’Shea 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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It’s been a rough year for many shares on the S&P/ASX 200 Index (ASX: XJO) in 2022 so far. The ASX 200 remains down around 3% so far this year, which tells us that many shares have failed to break over the year to date. One of the ASX 200’s more disappointing performers has been the Appen Ltd (ASX: APX) share price.

At the time of writing tody. Appen is down by 1.13% at $6.99 a share. That puts it at a dismal loss of 37.6% in 2022 alone. Over the past 12 months, Appen shares are now down by a sobering 61.8%.

Yes despite these clouds of gloom over the Appen share price, there has also been a more recent silver lining for the annotated dataset company. It was exactly a month ago today that Appen found a new 52-week low of $6.08 a share. Since then, the company has gone on to add almost 14% to its share price.

So could this mean Appen shares are on the comeback trail? After all, Appen used to be known as one of the WAAAX market darling growth shares.

Is the Appen share price a buy today?

Well, one investing expert certainly thinks so. That would be Ben Clark, portfolio manager at TMS Capital.

Writing for Livewire, Mr Clark named Appen as one of seven ASX shares “for when the market comes roaring back”. Although Clark acknowledged that Appen’s most recent results were disappointing, he is still bullish on the company’s long-term prospects. Here’s some of what he had to say on Appen:

They’re so far above every analyst’s expectation of where they’ll be in five years. I would also say there was a reaction like, ‘Oh they’re going to take weaker margins to try and grow the revenue line harder on the core’. The CEO was actually adamant that wasn’t going to happen. So, there’s sort of a bit of confusion there.

We’re sticking with it. It’s a business that we skim some time ago, a few years ago, and that we’ve added to in more recent years, it’s a fairly small holding, but I still think that there’s a good business there.

So a comeback trail might be what is in store for Appen going forward, if Mr Clark is to be believed. No doubt Appen’s recently-suffering shareholders would hope so. But we shall have to wait and see, as always.

At the current Appen share price, this ASX 200 tech share has a market capitalisation of $872.3 million, with a dividend yield of 1.44%

The post Is the Appen (ASX:APX) share price on the comeback trail? appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Brickworks impresses, Uniti confirms takeover approach
• 5 things to watch on the ASX 200 on Thursday
• Uniti (ASX: UWL) share price surges 11% to record high as Macquarie bid appears confirmed
• NAB, ANZ and CBA shares in focus as top broker tips extra $5b share buyback
• Here are the 3 most heavily traded ASX 200 shares this Wednesday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. 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 Thursday, the S&P/ASX 200 Index (ASX: XJO) has bounced back from a poor start and is edging higher. The benchmark index is currently up 0.1% to 7,385.7 points.

Here’s what is happening on the ASX 200 today:

Brickworks half year results impress

The Brickworks Limited (ASX: BKW) share price is charging higher today. This follows the release of a half year result which appears to have smashed the market’s expectations. Brickworks reported a 24% increase in revenue to $535 million and a 254% jump in underlying earnings before interest and tax (EBIT) to $450 million. The latter compares very favourably to Citi’s EBIT estimate of $321 million. This was driven by investment earnings of $73 million and a $349 million increase in the value of its share of its joint venture property trust with Goodman Group (ASX: GMG).

Soul Pattinson delivers strong half year profit growth

The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price is rising today. Investors have been buying the investment company’s shares following its half year results release. Soul Patts reported a 281% jump in adjusted profit after tax to $343.7 million thanks to strong performances by its major investments. This allowed the company to lift its interim dividend by 11% to 29 cents a share.

Uniti confirms takeover offer

The Uniti Group Ltd (ASX: UWL) share price has returned from its trading halt and is pushing higher. This morning the telco confirmed speculation that it has received a second takeover approach. The release notes that it has received a non-binding, incomplete, and indicative $5.00 per share proposal from Macquarie Infrastructure and Real Assets. This compares favourably to a $4.50 cash per share from Morrison & Co last week.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Brickworks share price with a 4.5% gain. This follows a positive response to its half year results. The worst performer has been the Zip Co Ltd (ASX: Z1P) share price with a 6% decline amid weakness in the tech sector.

The post ASX 200 (ASX:XJO) midday update: Brickworks impresses, Uniti confirms takeover approach appeared first on The Motley Fool Australia.

More reading

• Why is the Zip share price getting smashed so much more than other BNPL stocks in 2022?
• Soul Pattinson (ASX:SOL) share price on watch after 281% surge in net profit
• Brickworks (ASX:BKW) share price on watch amid 269% first half profit jump
• 2 ravaged ASX shares that will rise again: expert
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks, Washington H. Soul Pattinson and Company Limited, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

Although the S&P 500 experiences a correction of 5% about every 13 months and a drop of 10% about every 19 months (on average), investors still get spooked any time that it actually happens. This is because there are probably numerous other negative headlines at the time that have our attention and cause worry. 

The broader index is down 7% so far in 2022, which is not frightening by itself. But add in rising inflation, interest rate hikes, supply-chain challenges, and geopolitical turmoil, and the situation is full of uncertainty that could have investors questioning whether they should sell their stocks. 

In times like these, it’s worthwhile to have the right mindset when it comes to your portfolio. Keeping a level head and not panicking could pay off over the long term. 

Investors should focus on the fundamentals 

Warren Buffett, the legendary investor and head of conglomerate Berkshire Hathaway, recently released his company’s annual shareholder letter in which he emphasized that he and his longtime business partner, Charlie Munger, are not stock pickers, but rather business pickers. Adopting this mentality is absolutely crucial to surviving a market crash. 

Instead of being fixated on the day-to-day gyrations of stock prices, we should have our attention on the underlying fundamentals of the companies we own. Home Depot (NYSE: HD), for example, is down 21% (as of March 21) in 2022, but the business is performing extremely well right now. 

Revenue and diluted earnings per share in the most recent quarter (ended Jan. 30) jumped 10.7% and 21.1%, respectively, compared to the prior-year period. And this is on top of extremely difficult comparisons in the fiscal 2020 fourth quarter. What’s more, Home Depot’s same-store sales, an important metric for any retail business, increased 11.4% in fiscal 2021. 

The company continues to lean on its technological capabilities to serve both its DIY and professional customers. In the last fiscal year, digital sales were up 100% on a two-year basis. Although growth should slow this year, Home Depot will keep benefiting from the robust housing market and consumers’ propensity to take on renovation projects.

Looking at Home Depot’s stock performance in 2022 might make investors want to sell the stock and move on. Key data points that we should have our eyes on, such as the ones I just mentioned, indicate that we should take advantage of the current situation and buy more shares in the business. 

Understanding and focusing on the underlying fundamentals of your portfolio holdings, maintaining a long-term mindset, and realizing that market crashes are normal will help during times like these.

Volatility is the price of achieving outstanding returns 

Investors should not put any money in the stock market that they’ll need within the next five years. That’s because the stock market is inherently unpredictable in the short term, driven entirely by mood and sentiment at any given time. However, over longer periods of time, the performance of the underlying companies in our portfolios is what drives returns. 

Having a long-term approach allows investors to stay the course and not sell should markets take a turn for the worse, which we know happens often. Volatility is just a part of the game, and we must be able to stomach the inevitable ups and downs in order to achieve market-beating returns over time. 

I know it’s not an easy task, but ignoring what stock prices are doing, and instead keeping an eye on metrics like user growth, sales, net income, and cash flow will make it easier to handle market turmoil. And I’m positive that this mentality will ultimately make you a better investor. 

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

The post How to survive your first share market crash appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Brickworks impresses, Uniti confirms takeover approach
• If you were smart enough to buy $10,000 of Wesfarmers (ASX:WES) shares a decade ago, here’s how much you’d have now
• Experts name 3 of the best ASX lithium stocks to buy now
• Here’s why the Mesoblast (ASX:MSB) share price is climbing today
• McPherson’s (ASX:MCP) share price leaps 15% on Chemist Warehouse deal

Neil Patel owns Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Berkshire Hathaway (B shares) and Home Depot. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Wesfarmers Ltd (ASX: WES) share price has made strong gains over the course of the last decade.

The retail conglomerate had a market capitalisation of around $27.66 billion in 2012 before gaining traction over the years.

During 2017, Wesfarmers’ worth stood at around $37.49 billion, a 35.5% increase from 2012.

However, the decision to spin off Coles Group Ltd (ASX: COL) in 2018 led the value of Wesfarmers to drop. At the time, the parent company’s market capitalisation hovered at $27.24 billion – almost the same as 2012.

Nonetheless, it was a smart decision by management to recalibrate the group’s portfolio in order to maximise shareholder returns. The largest demerger in Australian corporate history has paid off in the years following.

Nowadays, Wesfarmers is valued at $57.12 billion, making it the ninth largest company on the ASX.

Below, we take a look at the power of long-term investing. We will calculate how much you would have made if you invested $10,000 in Wesfarmers shares a decade ago.

What was the Wesfarmers share price in 2012?

If you had invested $10,000 in Wesfarmers shares in 2012, you would have bought them for about $20.74 apiece. This would have given you approximately 482 shares, without topping up along the way.

Fast-forward to today and the current Wesfarmers share price is $50.47. This means that those 482 shares would be worth $24,326.54. When looking at percentage terms, this implies a gain of around 143%.

While this is a solid return, let’s not forget that the Coles demerger also would have given you 1 Coles share for every Wesfarmers share owned.

That means you also would have 482 Coles shares, valued at $8,560.32 based on the current share price of $17.76.

So, in total you would be sitting on $32,886.86.

And the dividends?

Wesfarmers has made a sum of 25 dividend payments including special dividends paid to shareholders from 2012 to 2022.

Adding those 25 dividends payments gives us an amount of $21.08 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $10,160.56.

On the other hand, Coles has made a total of 7 bi-annual dividend payments equating to $1.87. This gives us a figure of $901.34 from the 482 Coles shares owned as a result of the demerger.

When putting both the Wesfarmers and Coles investment gains and dividend distribution, an investor would have roughly $43,948.76.

In comparison, investing the same amount in the ASX 200 would have netted you a total figure of $17,279.72.

As you can see, investing in Wesfarmers would have more doubled what you would have gotten from investing in the benchmark index.

The post If you were smart enough to buy $10,000 of Wesfarmers (ASX:WES) shares a decade ago, here’s how much you’d have now appeared first on The Motley Fool Australia.

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• Broker: The Coles (ASX:COL) dividend will keep rising
• Today is the last hurrah for API. What does this mean for Wesfarmers (ASX:WES) shares?
• Wesfarmers (ASX:WES) now has control of API, but is the real fight just beginning?
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• Analysts name the best ASX 200 dividend shares to buy now

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 owns and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Fortescue Metals Group Limited (ASX: FMG), kinetic energy, and Formula One – oh my!

Fans of the ASX iron ore giant will be used to hearing of the futuristic technology being produced by the company and its green energy leg, Fortescue Future Industries (FFI). Though, that doesn’t make its ventures any less exciting.

In fact, its latest innovation will likely pique the interest of many Fortescue shareholders. Particularly, as it could bring $200 million of annual cost reductions.

Let’s take a look at the Formula One battery that could see iron ore trains powered by kinetic energy.

The ASX’s Fortescue Metals meets Formula One

ASX iron ore giant Fortescue Metals’ plan to create the world’s first ‘Infinity Train’ has been public knowledge for a few weeks now.

The battery-powered train will generate electricity by using its braking system while travelling downhill. Thus, its batteries will be able to charge using kinetic energy rather than a secondary power source.

Fortescue expects to pay US$50 million over the next two years to get the battery-powered trains to the Pilbara region. And new details of its design have come to light today.

According to reporting by the Australian Financial Review (AFR), the train will use nearly identical batteries to those developed for Formula One’s electric vehicle leg, Formula E.

Williams Advanced Engineering (WAE) created Formula E’s battery technology. FFI acquired the company earlier this month.

Additionally, the kinetic energy harvested from the train’s braking system might produce excess energy, Fortescue chair Andrew Forrest and WEA CEO Craig Wilson told the AFR.

That energy could be funnelled back to Fortescue’s renowned hydrogen operations.  

Previously, Fortescue stated the Infinity Train could see the ASX giant ditching diesel from its iron ore haulage operations.

Without the battery-powered train, the company could be burning 100 million litres of diesel annually in two years’ time, Forrest told the AFR.

Thus, the Infinity Train’s introduction could save Fortescue Metals $200 million each year.

It could also help the company reach its goal of ditching diesel by 2030 and drastically cut its carbon emissions.

Transporting iron ore using diesel-powered trains accounted for 11% of the company’s scope 1 emissions ­in financial year 2021.

While Fortescue Metals has been seemingly kicking goals on the innovation front lately, its performance on the ASX has been lacking.

Right now, the Fortescue share price is 4.5% lower than it was at the start of 2022.

The post What do Fortescue (ASX:FMG), kinetic energy, and Formula One have in common? appeared first on The Motley Fool Australia.

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• Why is the Fortescue (ASX:FMG) share price underperforming BHP today?
• How close is Fortescue (ASX:FMG) Future Industries to making green hydrogen?
• Are 2021’s monster dividends from ASX 200 mining shares sustainable in 2022?
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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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If you’re looking for exposure to the lithium sector, then you may want to check out the three shares listed below.

These lithium shares have been named as buys with material upside potential from current levels. Here’s what you need to know:

Allkem Ltd (ASX: AKE)

The team at Morgans believe this lithium miner could be the best option in the space right now. Its analysts currently have an add rating and $13.25 price target on the company’s shares.

The broker commented: “AKE is a pure play lithium producer with diversified products (spodumene, LiCO and borax) and geographies (WA and Argentina) that is set to expand. The almost completed Naraha plant will allow AKE to grow vertically into the lithium hydroxide market, supported by increased Argentinian brine production. The lithium market has seen strong price increases in CY21 but we don’t see signs of a break to this momentum yet. We expect EV demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification.”

Liontown Resources Limited (ASX: LTR)

Another lithium share to consider is Liontown. Bell Potter is very positive on this lithium developer and has a speculative buy rating and $3.06 price target on its shares. Its analysts note that the company has recently signed a deal with auto giant Tesla, which means that Liontown has sales agreements locked in for more than half of its planned production.

Bell Potter commented: “LTR has entered a binding term sheet with Tesla for supply of up to 150ktpa spodumene concentrate from the Kathleen Valley project, adding to an agreement last month with major global battery producer LG Energy Solution (LGES). LTR now has binding term sheets in place for over half of the expected initial production from Kathleen Valley, with offtake pricing linked to market prices for lithium hydroxide. Lithium price upgrades increase our LTR valuation to $3.06/sh.”

Vulcan Energy Resources Ltd (ASX: VUL)

This lithium developer could another lithium share to buy. The team at Germany-based Alster Research currently has a buy rating and $20.00 price target on the company’s shares. The broker believes that Vulcan is well-placed to benefit from geothermal energy demand and its massive Zero Carbon Lithium project, which is aiming to service the European car market.

It commented: “Aside from the future production of carbon neutral lithium, Vulcan produces geothermal energy and heat. Clearly, Vulcan would benefit from an increasing penetration of geothermal energy by streamlined regulatory procedures, as it would simultaneously help identify and develop the lithium deposits within the granted licenses. In terms of acceptance, Vulcan is already making efforts on its own initiative to convince policymakers and the public of the merits of the technology. Overall, we expect the conditions for Vulcan to receive a further impetus not only due to the conflict, but also due to the fulfillment of climate targets.”

The post Experts name 3 of the best ASX lithium stocks to buy now appeared first on The Motley Fool Australia.

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• These 3 ASX 200 shares are topping the volume charts this Monday
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Motley Fool contributor James Mickleboro owns Allkem. 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 Mesoblast Ltd (ASX: MSB) are inching higher today and now trade around 3% in the green at $1.13.

Mesoblast shares have struggled of late, down 19% since trading restarted back in January, and down almost 53% in the past 12 months.

Today, Mesoblast informed the market that a new member has joined its board. Whilst the update isn’t market-sensitive in any way, it’s still integral to the company’s growth narrative.

What did Mesoblast announce?

The company advised that Dr Philip R. Krause, M.D. has joined its board of directors. Dr Krause is currently Chair of the World Health Organization COVID Vaccines Research Expert Group.

Mesoblast notes that “most recently he shared responsibility for regulatory authorizations of COVID-19 vaccines in the US.”

For the past decade, the company says that Dr Krause was Deputy Director, Office of Vaccines Research and Review (OVRR) at the US Food and Drug Administration’s (FDA) Center for Biologics Evaluation and Research (CBER).

Dr Krause said that he had followed Mesoblast’s story over the years and that he is looking forward to helping in successfully launching its products, that are “cutting-edge technology.”

“I have followed Mesoblast’s development programs closely and am very much looking forward to help guide the company as it brings its lead products to the market,” he remarked.

“I believe I can make a substantial contribution at this very important time in the company’s transition towards commercialisation”.

Meanwhile, Mesoblast CEO, Dr Silvu Istecu highlighted how pleased the company was in having Dr Krause on board, given his key expertise of the FDA and US markets.

“We are delighted to have Dr Krause join our board,” Istecu noted.

“The biologics development and regulatory expertise that he brings will be invaluable in our ongoing FDA interactions on our lead and follow-on product candidates,” he concluded.

Mesoblast has been under considerable pressure from short sellers lately, regularly finding itself on the daily 10 most shorted ASX shares list these past few weeks.

Jefferies has Mesoblast rated as a hold and values the company at $1.25 per share, in line with the consensus price target.

The consensus price target on Mesoblast shares has crept down from $6.50 in September 2020 alongside the stock price, which is now trading back around 5-year lows.

The post Here’s why the Mesoblast (ASX:MSB) share price is climbing today appeared first on The Motley Fool Australia.

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• Mesoblast (ASX:MSB) share price rebounds 15%, what’s been happening?

Motley Fool contributor Zach Bristow 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 McPherson’s Ltd (ASX: MCP) share price is having a very strong day.

In morning trade, the health, wellness and beauty products company’s shares are up almost 15% to $1.02.

Why is the McPherson’s share price surging higher?

The catalyst for the rise in the McPherson’s share price has been the announcement of an agreement with pharmacy giant Chemist Warehouse Group.

According to the release, the two parties have agreed to establish a unique strategic alliance which has been structured to deliver material commercial and operational benefits to McPherson’s.

As part of the agreement, McPherson’s will be appointed as Chemist Warehouse’s exclusive long-term distributor of a select portfolio of Chemist Warehouse-owned or controlled health and beauty brands outside of the Chemist Warehouse Network in Australia and New Zealand.

The range, which includes Wagner Vitamins, Wagner Body Science, Bondi Protein, Foster Grant, INC and Microgenics, will be made available to all customers within the McPherson’s distribution network for an initial term of five-years commencing on 1 July 2022.

In addition, Chemist Warehouse will increase the portfolio of McPherson’s brands it currently ranges in Australia and New Zealand, to include Moosehead, Maseur, Fusion Health, Stratton, Sugar Baby and Happy Flora. The pharmacy giant will also recognise McPherson’s as a preferred supplier, allowing the company to enjoy the benefits of that status.

What’s the catch?

Chemist Warehouse isn’t doing this out of generosity. It will come at a cost to McPherson’s.

McPherson’s is essentially giving away almost 10% of the company to Chemist Warehouse in exchange for these agreements.

The release notes that the company will issue approximately 14.1 million McPherson’s shares to Chemist Warehouse on 1 July 2022, making the pharmacy chain a substantial shareholder with an interest of 9.9% on a fully diluted basis.

Despite the dilution caused by the material share issue, management expects the agreement to be earnings per share accretive in FY 2023. This is based on agreed sales targets.

Time will tell if that is the case.

The post McPherson’s (ASX:MCP) share price leaps 15% on Chemist Warehouse deal 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 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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