The Reserve Bank of Australia (RBA) deputy governor, Guy Debelle, has resigned from his position and is going to work for Fortescue Metals Group Limited (ASX: FMG) instead.

But he’s not about to start working at a mine.

Dr Debelle is taking up the position as the new chief financial officer (CFO) of Fortescue Future Industries (FFI).

What’s Fortescue Future Industries?

Fortescue was set up to be a major iron mining business. It’s now one of the biggest in Australia and the world. help

However, the company is now pivoting.

In December it officially announced that it was transitioning from a pure-play iron ore and future-facing metals exploration group, to a vertically integrated green energy and resources group.

Its focus is a major green, fully renewable hydrogen initiative. It boasts of having the largest portfolio of green hydrogen, green ammonia, green iron ore and other green product developments, in the world.

FFI is also working on the decarbonisation of Fortescue through the development of a green fleet and the supply of green energy.

One of the latest moves by Fortescue has been to acquire Williams Advanced Engineering (WAE) for US$221 million. This will provide technology and expertise in high-performance battery systems and helping Fortescue’s operational efficiency, lower maintenance costs and accelerate the decarbonisation of its mining operations.

The WAE deal will also establish a “significant new global battery growth business opportunity for Fortescue”.

So how does Dr Debelle fit into this?

Fortescue Chair Andrew Forrest said in an announcement:

Bringing in someone of Dr Debelle’s economic credibility goes to the heart of our vision for FFI. Not only are we committed to arresting climate change, we are also committed to creating economic growth, increasing jobs and growing our business profitability.

Dr Debelle, with the leadership team, will drive the most optimal financial solutions for FFI’s vast technology and energy portfolio. This will be instrumental in Fortescue’s journey to become the best green hydrogen, energy, and resources company in the world.

We will prove that going green has a profitable future for companies the world over. We will demonstrate this so that other heavy emitters, like us, will follow our efforts and go green too. Further, we will produce the green energy and ammonia to enable them to do it.

Dr Debelle was touted as a lead candidate to be the next boss of the RBA, but he and his family are reportedly passionate about climate change.

Dr Debelle comments

In a statement on the RBA website, Dr Debelle said:

I am honoured and privileged to have worked at the Bank for the past 25 years and contributed to improving the welfare of the Australian people. The Bank is a great institution which serves Australia well, including most recently through the policy response to COVID which has helped the country come through the crisis in a strong position. I have often spoken about the opportunities for business to help address climate change. This new position gives me the opportunity to make a significant contribution in this area.

Fortescue share price snapshot

Over the last month, the Fortescue share price has fallen around 20%. In the 2022 calendar year to date it has declined over 8%.

The post Own Fortescue (ASX:FMG) shares? Here’s why the miner has just hired the RBA’s deputy governor appeared first on The Motley Fool Australia.

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• Is the Fortescue (ASX:FMG) share price a buy right now?
• Record $36bn in dividends could help ASX share market recovery
• Will the Fortescue (ASX:FMG) share price fly as it links up with Airbus?
• 15% yield! But are these ASX high-yield shares dividend traps?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

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

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With all the crazy events going on around the world, many ASX shares have been hammered this year regardless of how the underlying business is going.

And that’s exactly the disappointment Cyan portfolio manager Dean fergie relayed to his clients in a memo this week.

“Market sentiment, in the short-term, is a powerful force and the recent inflation fears (and associated rate rises), exacerbated by the invasion of Ukraine and the uncertainty and concerns around energy prices and the potential economic impact, has created almost the perfect storm for many of the fund’s holdings.”

However, Fergie told his clients that short-term shocks like this still doesn’t shake his longer-term faith in the stocks that he’s backed.

“In times of turmoil, it is valuable to focus on the underlying operational performance of our investments, particularly when the disconnect between the share prices and business performances has been stark,” he said.

“We remain particularly positive given the optimistic results recently released.”

Fergie examined 3 ASX shares that plunged in February despite the company performance still remaining strong:

Drink away the world’s woes

Shares for craft drink provider Mighty Craft Ltd (ASX: MCL) fell a hair-raising 18% over last month.

Fergie noted that this freefall happened at the same time as it reported spectacular numbers.

The first-half saw revenue of $30 million, which is up 132%, and a “wildly successful launch” of its Better Beer brand.

“With the economy reopening and increased scale of the business post its acquisition of The Adelaide Hills Group, the company moved into profitability in the last quarter of the calendar year — a milestone that looked a pipedream only a few months ago.”

According to Fergie, that was not just a fluke half and the outlook remains strong.

“We continue to back management to deliver on their aggressive growth ambitions which include posting revenues in excess of $70 million for FY22,” he said.

“Despite these important financial milestones being achieved, the share price did not, in the short-term, reflect the company’s underlying achievements.”

Mighty Craft shares closed Thursday at 30 cents, which is almost 30% down from the start of February.

Wealth managers in the firing line

Fergie has publicly backed micro-investment platform Raiz Invest Ltd (ASX: RZI) for a while now.

Similar to Mighty Craft, the company reported excellent numbers in February but the share price sunk like a stone.

“Investment platform business Raiz delivered strong growth metrics period-on-period, including active customer growth of 73% to 595,000, funds under management growth of 71% to $1 billion and group revenue growth of 77% to $9.3 million (the vast majority of which is recurring),” said Fergie.

“Again, this was not reflected in share price movement with the stock falling 17% in February.”

He suspected general market sentiment went against listed fund managers, with huge selloffs seen in sector stalwarts Magellan Financial Group Ltd (ASX: MFG) and Pinnacle Investment Management Group Ltd (ASX: PNI).

Raiz shares closed Thursday at $1.14.

The software maker that set a new company record 

Healthcare software provider Alcidion Group Ltd (ASX: ALC) reported “solid” half-year results, according to Fergie.

But guess what, its share price plunged 17% in February.

Fergie noted the contracted revenue of more than $27 million was a company record, despite COVID-19 delaying purchasing decisions in UK hospitals.

“As such we expect some material short-term catalysts by way of new contracts out of the region,” he said.

“Alcidion is building a very strong position in the healthcare industry which is expected to rapidly expand as the digitisation of the healthcare industry accelerates.”

The Alcidion share price finished Thursday at 18 cents.

Deals galore in February, but share price didn’t match the news

Fergie has also been a longtime fan of games developer Playside Studios Ltd (ASX: PLY), which saw its shares lose 9% in February.

Again, Fergie is consoled by an excellent half-year report.

“This Australian-based game developer delivered a great interim result which clearly illustrated its strong growth and a healthy outlook,” he said.

“Revenue grew 61% half-on-half to $9.4 million.” 

In the same month, Playside revealed it booked $8.4 million in revenue in just one week after it launched Beans NFT.

“Further good news was released when Playside signed a material work-for-hire contract with Activision Blizzard Inc (NASDAQ: ATVI), one of the world’s most successful interactive entertainment companies and maker of iconic games such as Call of Duty, Overwatch, Guitar Hero and Candy Crush.”

The share price movement in February confounded Fergie.

“Through the month the share price of PLY rallied from $1.02 to $1.40 before, disappointingly, ending the month at $0.93 — a head-scratching outcome given the materially good news.”

Playside shares closed Thursday at 94 cents.

The post 4 fallen ASX shares that are still awesome businesses: expert appeared first on The Motley Fool Australia.

More reading

• 3 small cap ASX shares tipped for big things by analysts
• 2 small cap ASX shares that are highly rated by brokers
• 3 growing small cap ASX shares going places
• Playside (ASX:PLY) share price launches 6% on surging half-year revenue

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. owns and has recommended Activision Blizzard, Alcidion Group Ltd, and PINNACLE FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Activision Blizzard and Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Pushpay Holdings Ltd (ASX: PPH) share price has dropped over 20% since the beginning of 2022.

Looking further back, it has sunk even further. The past six months show a decline of almost 50%.

This ASX tech share offers churches a number of useful tools relating to electronic donations and church management.

It’s not too long until investors get an insight into the company’s full-year result, but the market gained a number of insights in the half-year result a few months ago.

Digital giving is here to stay?

During COVID-19, the company experienced a significant increase in the number of people donating electronically in the era of social distancing and lockdowns.

Pushpay provided the tools that churches needed to stay connected with their congregations.

But what about when the US started opening up?

When the company announced its result for the first six months of FY22 it said that it “has not seen any material change in digital giving reverting to non-digital means” and that could mean that customers in the US faith sector “may have undergone a fundamental technological shift as a result of the current environment”.

Pushpay said that digital giving and engagement is now a mission-critical factor within a church’s engagement strategy.

Increasing payment volumes and profitability

Despite the HY22 slowdown of growth compared to prior recent results, Pushpay continued to see growth of the business.

For the first six months of its financial year it said that payment volumes were up by 9% to US$3.5 billion. It’s expecting continued growth over time.

The growth of its top line helped the company’s profit margins.

The ASX tech share reported that its gross profit increased from 68% to 69%.

Whilst there can be various impacts on the net profit after tax (NPAT) from year to year, Pushpay reported another big jump in profit. HY22 NPAT rose by 43% to US$19.1 million. Profit can be a key influence on the Pushpay share price.

Growth plans

Pushpay continues to work on its growth plans.

It wants to win more large and medium churches in its main customer base. The ASX tech share also hopes for more adoption of digital giving by people who attend those churches.

But a new focus is on winning a market share of 25% of the Catholic church management system and donor management system market over the next five years.

The Catholic Church also has connections with education institutions which could unlock more growth avenues.

Pushpay is keeping geographical expansion under consideration as well.

Is the Pushpay share price a buy?

There are a few different brokers that currently rate the business as a ‘hold’ or a similar rating like ‘neutral’.

Macquarie has a price target of NZ$1.70 on the business, though it was disappointed by the half-year growth slowdown. UBS has a price target of NZ$1.90. Ord Minnett has a price target of $1.90.

On Ord Minnett’s numbers, the Pushpay share price is valued at 16x FY23’s estimated earnings.

The post Down 20% in 2022, is the Pushpay (ASX:PPH) share price a clear buy? appeared first on The Motley Fool Australia.

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• Why the Pilbara (ASX:PLS) share price is a buy right now: expert
• Is the ASX set to welcome yet another BNPL share? Macquarie-backed company gears up for IPO
• Is Macquarie (ASX:MQG) gearing up to ink its next big deal?

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. owns and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Macquarie 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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If you’re looking for some ASX dividend shares to add to your income portfolio, then you might want to look at the ones listed below.

Here’s what you need to know about these highly rated dividend shares:

Centuria Industrial Reit (ASX: CIP)

The first ASX dividend share to consider is Centuria Industrial. It is the largest domestic pure play industrial REIT, with a high-quality portfolio of properties across key metropolitan locations throughout Australia.

These assets include in-demand areas such as distribution centres, cold storage, and transport logistics.

Macquarie is a fan of the company. Its analysts believe its shares are attractively priced and note that its portfolio is well-placed for growth thanks to tailwinds being experienced in the industrial sector.

The broker currently has an outperform rating and $4.27 price target on its shares. And as for dividends, Macquarie is forecasting a 17.3 cents per share distribution in FY 2022 and a 17.8 cents per share distribution in FY 2023.

Based on the current Centuria Industrial share price of $3.83, this will mean yields of 4.5% and 4.6%, respectively

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be in the buy zone right now is NAB.

It has been tipped as a buy by the team at Goldman Sachs. Its analysts like the banking giant due to its position as the largest business bank. The broker believes this will allow NAB to benefit more from the continued economic recovery.

Goldman also highlights that NAB’s cost management initiatives are further progressed relative to most of its peers. This has freed up investment spend to be more directed towards customer experience rather than infrastructure.

All in all, the broker is expecting this to lead to a growing stream of fully franked dividends. It is forecasting 145 cents per share in FY 2022, 154 cents per share in FY 2023, and then 163 cents per share in FY 2024. Based on the current NAB share price of $29.99, this will mean yields of 4.8%, 5.1%, and 5.4%, respectively.

Goldman has a conviction buy rating and $31.33 price target on its shares.

The post 2 excellent ASX dividend shares analysts rate as buys appeared first on The Motley Fool Australia.

More reading

• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Own NAB (ASX:NAB) shares? Here’s why the bank is this brokers top pick
• ANZ has the largest ASX big four bank dividend yield right now. What?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Top broker says NAB (ASX:NAB) share price has 20% upside. Here’s why

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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was a strong performer and stormed higher. The benchmark index rose 1.1% to 7,130.8 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in the red following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.5%, the S&P 500 is trading 0.6% lower, and the Nasdaq is down 1%.

Oil prices fall

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a subdued finish to the week after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 1.8% to US$106.87 a barrel and the Brent crude oil price is down 1% to US$110.06 a barrel. Optimism over a potential supply boost is weighing on prices.

Westpac shares given hold rating

The Westpac Banking Corp (ASX: WBC) share price could be close to being fully valued according to analysts at Bell Potter. This morning the broker retained its hold rating and $24.00 price target. Bell Potter has doubts over Westpac’s FY 2024 cost cutting targets.

Gold price rebounds

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price rebounded. According to CNBC, the spot gold price is up 0.7% to US$2,002.70 an ounce. Weakness in equities and a high US inflation reading boosted the safe haven asset’s appeal.

Tech shares on watch

Tech shares such as Block Inc (ASX: SQ2) and Zip Co Ltd (ASX: Z1P) could have a rough day after US tech stock pulled back on rate hike concerns. This follows news that inflation in the United States has hit its highest level in 40 years. According to CNBC, US inflation reached 7.9% in February due largely to shelter, gasoline, and food costs.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Thursday
• Why are ASX 200 oil shares taking such a beating today?
• Has the bottom been and gone? Zip (ASX:Z1P) share price lifts 9% in 2 days
• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 have room for some new portfolio additions, then it could be worth considering the three ASX growth shares listed below.

Here’s what you need to know about these shares:

Allkem Ltd (ASX: AKE)

The first ASX growth share to consider is Allkem. It is a top five global lithium miner that is benefiting greatly from sky high lithium prices thanks to its Mt Cattlin and Olaroz operations. In addition, the company has a collection of projects that could come online in the near future and support strong production growth in the coming years. It is for this reason that Allkem is the top lithium pick for analysts at Morgans. The broker currently has an add rating and $14.83 price target on its shares. The Allkem share price ended the day at $10.09.

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share to look at is Lovisa. It is a fast-fashion jewellery retailer with a growing global store network. Lovisa is another company that Morgans is positive on. Its analysts rate the retailer highly thanks to its significant expansion potential and highly experienced management team leading the charge. All in all, the broker believes Lovisa has the potential to be one of the biggest success stories in Australian retail. And while it accepts that investment will be needed to expand its network in the US and Europe and to take the brand into new markets, it believes the returns could be “stellar.” Morgans has an add rating and $24.00 price target on its shares. The Lovisa share price is currently fetching $18.64.

Xero Limited (ASX: XRO)

A final ASX growth share to consider buying is Xero. It is a leading cloud-based business and accounting software provider. Xero’s successful evolution into a full service small business solution has led to millions of small to medium sized businesses globally subscribing and running their businesses through its platform. This has underpinned strong revenue and profit growth in recent years and, pleasingly, the team at Goldman Sachs expects this trend to continue for a long time to come. This is thanks to its global expansion, the ongoing shift to cloud solutions, and its burgeoning app ecosystem. Goldman Sachs has a buy rating and $135.00 price target on the company’s shares. This compares to the latest Xero share price of $98.56.

The post 3 excellent ASX growth shares analysts believe have huge upside potential appeared first on The Motley Fool Australia.

More reading

• Morgans picks its top 3 ASX retail shares to buy today
• 3 beaten-up ASX tech shares that ‘tick all the boxes’: fundies
• Here’s why the Lovisa (ASX:LOV) share price is sliding 5% today
• Lovisa (ASX: LOV) share price falters 10% but brokers still say buy
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Motley Fool contributor James Mickleboro owns Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So, we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.” 

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Rio Tinto Limited (ASX: RIO) will be terminating all commercial ties with Russia amid the Ukraine invasion.

The Rio Tinto share price dropped 7.73% today to close at $110.61. For comparison, the S&P/ASX 200 Index (ASX: XJO) climbed 1.1% today.

So how will this decision impact Rio Tinto?

Russia boycotted

Rio Tinto confirmed it is cutting ties with Russia, Reuters reported. In an email statement, a company spokesperson said: “Rio Tinto is in the process of terminating all commercial relationships it has with any Russian business.”

The decision has sparked speculation about Rio Tinto’s Queensland Alumina Limited refinery, based in Gladstone. Russian company Rusal has a 20% stake in this business.

Sources told the Sydney Morning Herald the joint venture has been placed “under immediate review”. However, the publication reported Rio may need to buy out Rusal’s stake in this venture.

Rusal is Russia’s largest aluminum producer. An expert predicted Rio’s move could tighten aluminum supply. In a Bloomberg article cited by Yahoo Finance, mining analyst at Shaw and Partners Peter O’Connor said:

Rio’s move could keep things tight in the aluminum market until trade flows can adjust.

Rio is said to not have any operational assets or employees in Russia or Ukraine. The company joins other giants including Shell PLC (NYSE: SHEL), BP PLC (NYSE: BP), and Exxon Mobil Corp (NYSE: XOM) in pulling out of Russia.

Rio Tinto share price snapshot

As my Foolish colleague Aaron reported earlier, Rio Tinto shares were trading ex-dividend today. Anyone who buys shares from today will miss out on the dividend, hence the share price fall.

The Rio Tinto share price has leapt 10% this year to date but has fallen 3% over the past 12 months.

In the past month, Rio Tinto shares have slipped by 5%, while they are down 10% over the past week.

Rio has a market capitalisation of about $41 billion based on its current share price.

The post Rio Tinto (ASX:RIO) is cutting all ties with Russia. What does this mean for the mining giant? appeared first on The Motley Fool Australia.

More reading

• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Here’s why the Rio Tinto (ASX:RIO) share price is sliding 7% today
• 5 things to watch on the ASX 200 on Thursday
• Record $36bn in dividends could help ASX share market recovery

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 Telstra Corporation Ltd (ASX: TLS) share price was one of the more interesting performers in the ASX today. As of market close, the telco was down by 1.02% at $3.88 a share. That’s after Telstra opened at $3.94 this morning. In stark contrast, the S&P/ASX 200 Index (ASX: XJO) enjoyed a robust day of gains today. The ASX 200 rose by a pleasing 1.1% at over 7,100 points. 

So what went on with Telstra shares?

Well, one possible cause might be the news that the telco is facing a class action. As my Fool colleague Tony covered today, the company is facing legal action from a former employee. Former staffer Jodi Wruck has reportedly filed a case in the Federal Court against Telstra after she was fired in December following a refusal to get a COVID-19 vaccine, as per the company’s vaccination policy. Wruck has also claimed that “at least seven” staff members have signed on as plaintiffs, which is the legal minimum to be classified as a class action. 

Telstra told the Motley Fool that “state and territory public health orders also required those performing essential telco work to be vaccinated”.

It’s unclear if this development did impact the Telstra share price today, but it is possible.

Telstra share price snapshot

Telstra shares have had a pretty miserly time of it over the year so far. In 2022, Telstra is still down by a notable 8.06% as it currently stands. It’s also down by close to 10% from the 52-week high of $4.31 per share share that we saw back in January. However, zooming out, the picture looks a lot brighter. Telstra remains up close to 27% over the past 12 months, and up almost 45% since October 2020.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $45.58 billion, with a dividend yield of 4.12%.

The post Why was everyone talking about the Telstra (ASX:TLS) share price today? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Own Telstra shares? Here’s why the telco faces new legal action
• These 3 ASX 200 shares are topping the volume charts on Thursday
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Warning: Only 4 ASX shares just added to ASX 300 are profitable

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation 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 Paladin Energy Ltd (ASX: PDN) share price surged 11% into the green today to close at 85.5 cents.

That marks a 22.14% jump in the past two days as uranium shares such as Paladin benefit from record-high uranium prices spurred on by a number of macro-undertones.

Uranium supply shock sends Paladin share price north

Uranium futures rallied hard in late February from a four-month low of US$44 per pound stretching up to US$54 per pound at the time of writing.

That’s a 10-year high for the chemical element that supplies energy for hundreds of thousands of individuals and companies around the world.

European conflict has sent uranium prices in the elevator as Russia responded to US-imposed sanctions on oil imports by placing a ban on exports of raw materials overnight, according to Trading Economics.

Some experts even believe uranium could reach US$100 a pound, as Russia accounts for roughly 10% of global exports for the metal.

The supply shock has market pundits nervous and has countries that use uranium for energy scrambling to try and find other means of energy production to make up the shortfall.

“The US nuclear energy sector produces 20% of the country’s electricity, and relies on Russia for 16% of its imports,” according to Trading Economics.

As Paladin’s share price closely traces the path of uranium with just a minor tracking error (shown below), investors were sure to be piling into the company today.

What else is weighing in?

Additionally, skyrocketing commodity markets could be impacting the Paladin share price today.

“…Skyrocketing oil prices prompted nations to shift to alternative energy sources,” Trading Economics also said, suggesting the jump is impacting demand–supply curves.

As a result of tension being wound at both ends, uranium futures have climbed more than 95% in the past year and are up 24% in the past month after staying on trend today.

In fact, the Bloomberg Commodities Index (BCOM), a proxy to gauge the strength of the overall sector, has soared to 10-year highs as well just recently.

It remains to be seen what will happen with the flow of various commodities from this trade battle. Regardless, uranium players like Paladin are on the receiving end of some serious capital gains.

The Paladin share price has spiked hard this week and is now up 110% for the past year. However, it is down almost 3% this year to date.

The post Why has the uranium rally got this ASX share blasting 22% higher in 2 days? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Thursday
• Why are ASX uranium shares having such a stellar day?
• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher
• Here are the top 10 ASX shares today

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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Shares in Volpara Health Technologies Ltd (ASX: VHT) finished trading on Thursday up 4.51% in the green at 70 cents.

Investors appeared to be reacting positively to a company announcement from Volpara today. Even though the release wasn’t price-sensitive in any way, it did cover some interesting progress with respect to the company’s VolparaDensity software.

Not only that, but brokers are constructive on the company this year, noting it has potential for outsized returns, Let’s take a look.

Is Volpara a buy in 2022?

According to the analysts at Bell Potter, Volpara could be a speculative buy this year. The broker recently retained its buy rating whilst slicing its price target to $1.30 per share.

Bell Potter reckons there is a disconnect between Volpara’s share price, that’s been stuck in a downward trend, and the company’s fundamentals, which have been growing.

The dislocation has its analysts excited, noting there is a potential buying opportunity before the market recognises the gap.

“Volpara has an expanding revenue base and appears to be on a pathway to cash flow breakeven over the course of calendar years 2022/2023”, it said.

“We conclude that the company is well funded in the short term and will continue to expand its revenue footprint both from existing clients and newly business opportunities”.

Morgans is also constructive on the company, valuing it at $1.87 per share back in January.

A figure of $1.58 arises after taking the average of these two valuations.

What did Volpara announce today?

Today Volpara announced the release of new screening recommendations by the European Society of Breast Imaging (EUSOBI) regarding the company’s software.

The EUSOBI made the recommendations for women with extremely dense breast tissue as a direct result of
findings from a 10-year long trial, that used VolparaDensity breast density assessment software.

“The new recommendations represent a significant shift from the biannual mammography exams currently advocated by most European screening organisations and offer further clinical and commercial validation of Volpara’s technology, designed to improve women’s health outcomes through personalised mammographic care”.

Micro-simulations that were modelled from the study’s findings suggest that “adding biannual MRI to biannual
mammography” – as was done in the trial – “would save 8.6 additional lives per 1,000 women invited, at a cost of 150,000 Euro per life, or 22,500 Euro per quality-adjusted life-year (QALY), indicating a cost-effective method”.

With these kinds of results, it doesn’t come as a surprise to why investors might have looked favourably on the company today, despite the announcement being deemed non-sensitive.

Those wanting to see the full version of the EUSOBI’s recommendations can do so by clicking here.

Volpara share price snapshot

The Volpara share price has been beaten down the last 12 months. During that time it has collapsed more than 43% and is down 33% this year to date.

During the past month, shares have continued the downtrend and traded 16%.

This kind of downbeat market sentiment is exactly what has brokers chomping at the bit on Volpara, as mentioned above.

The post Down 33% in 2022, is this ASX healthcare share a buy following the company’s latest trial result? appeared first on The Motley Fool Australia.

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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. owns and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. 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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