Key points

• Imugene share price soared 5% on the back of European patent approval
• This is further intellectual protection for the company’s HER-Vaxx immunotherapy
• Today’s news follows recent South Korean patent award

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Imugene Limited (ASX: IMU) shares were on the move at the open this morning, soaring 5% to 30 cents before quickly retreating in the first hour of trading.

At the time of writing, the Imugene share price is down 1.75% to 28 cents apiece. It’s worth noting that Imugene was heavily sold off in the past week, with the share price falling by roughly 20%.

Let’s take a look at the news that the immuno-oncology company released this morning.

Imugene achieves another ‘important milestone’

Investors initially bid the Imugene share price up today, following a positive announcement and a rebound across the ASX.

The All Ordinaries (ASX: XAO) is travelling 0.4% higher to 7,146 points, after spending this week deep in the red.

According to the Imugene release, management advised it has received a notice of grant from the European Patent Office. This is in relation to the company’s HER-Vaxx immunotherapy, which is in development for HER-2 positive gastric cancer.

Earlier this month, Imugene also secured patent approval from the South Korean Intellectual Property Office for the same therapy.

HER-Vaxx immunotherapy is a B-cell activating immunotherapy. The therapy treats tumours that over-express the HER-2/neu receptor. Imugene is designing HER-Vaxx to treat gastric, breast, ovarian, lung, and pancreatic cancers.

This patent approval in a major oncology market is a key step in protecting the company’s intellectual property.

The patent protects the method of composition and method of use of Imugene’s HER-Vaxx immunotherapy for 15 years.

Imugene managing director and CEO, Leslie Chong said:

Attaining the key European patent is an important milestone and is another major pharmaceutical market to grant patent protection for HER-Vaxx until 2036.

Imugene share price summary

It has been a solid 12 months for Imugene investors, with the company’s share price jumping 156%. The share price reached an all-time high of 62.5 cents in November before embarking on a downhill trend.

Imugene presides a market capitalisation of roughly $1.65 billion with approximately 5.81 billion shares on issue.

The post Why the Imugene (ASX:IMU) share price advanced 5% on market open appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Imugene (ASX:IMU) share price backtracks 7% despite milestone update
• These are the 5 best performing ASX shares of 2021
• Why did Pro Medicus (ASX:PME) and 2 other ASX 200 healthcare shares fall today?
• Why is the Imugene (ASX:IMU) share price up 8% 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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Key points

• Goldman Sachs thinks REA shares are a buy ahead of earnings season
• The broker believes the property listings company could smash consensus estimates
• Goldman’s price target implies 23% upside

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The REA Group Limited (ASX: REA) share price is up 1% to $136.50 on Friday morning.

One leading broker that believes the property listings company’s shares could keep on rising is Goldman Sachs.

What did the broker say about the REA share price?

According to a note this morning, Goldman Sachs has retained its buy rating but trimmed its price target on the company’s shares to $168.00.

Based on the current REA share price, this implies potential upside of 23% for investors over the next 12 months.

The note reveals that Goldman is expecting a strong result from REA next month when it releases its half year update. In fact, its analysts suspect that the company will outperform the market’s expectations for both revenue and earnings.

Goldman commented: “We expect a very strong result, with 1H22 Rev/EBITDA/NPAT of A$592mn/A$373mn/A$227m [growth of 37%, 29%, and 32%], well ahead of consensus (+4%/+7% Rev/EBITDA vs. Visble Alpha Consensus Data).”

A key driver of this outperformance is the broker’s expectation for a particularly strong second quarter.

The broker explained: “This implies 2Q Rev/EBITDA growth of +40%/+30% vs. +35/+27% in 1Q, given improved listings (+21% GSe vs. +11% in 1Q).”

And while Goldman suspects that the second half will be softer, potentially due to the Federal Election, it still expects another solid full year result from the realestate.com.au operator.

Goldman has pencilled in revenue of $1,153.5 million and EBITDA of $685.8 million for FY 2022. This equates to year on year growth of 24.3% and 21%, respectively.

What else will be on watch?

There are a number of other items that Goldman has suggested investors focus on.

It explained: “Key focus points: 1) Depth uptake, with positive 1Q trends, 2) International momentum (Move, India, PropertyGuru); and 3) cost performance, given we expect higher opex than prior guidance (high single digit operating cost growth excl. MOC/Elara), given supportive near-term macro.”

The post Top broker tips REA (ASX:REA) shares as a buy ahead of a ‘very strong result’ appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares brokers have named as buys
• Top brokers name 3 ASX shares to buy next week
• Is the REA Group (ASX:REA) share price a clear buy after dropping 14% in less than 3 weeks?
• Analysts name 2 excellent ASX 200 shares to buy
• Are these 2 top ASX growth shares buys?

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 recommended REA 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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Key points

• ASX cannabis shares could benefit from new COVID-fighting research
• Cannabidiol (CBD) has proven effective in mice
• Researchers hope to launch human trials

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ASX cannabis shares haven’t exactly shot the lights out over the past full year.

At all.

The Creso Pharma Ltd (ASX: CPH) share price, for example, is down 48% over the past 12 months.

Little Green Pharma Ltd (ASX: LGP) has done a bit better. But the ASX cannabis share is still down 17% since this time last year.

As for medicinal shareholders in marijuana cultivator Cann Group Ltd (ASX: CAN), they’ve watched the stock fall a painful 55%.

With this month’s sharp correction, the All Ordinaries Index (ASX: XAO) has given back much of its gains. But for some comparison, the index remains up 3.6% over the past full year.

With that said, ASX cannabis shares could be in for some healthy tailwinds down the line.

That is if breaking research pans out to show that cannabidiol (CBD), an active ingredient in cannabis, could help prevent COVID-19 infections.

Can CBD help prevent COVID infection?

While there’s no definitive answer yet, Live Science reports that research suggests CBD “could block the coronavirus“.

Not just any low potency CBD though. But rather “the kind of medical-grade … CBD used to treat seizure disorders”.

Should that prove out, it would certainly be welcome news to ASX cannabis shares involved in medicinal production.

Scientists involved in the study caution that CBD won’t be a silver bullet that will bring down the pandemic on its own.

However, according to Live Science:

The researchers are hopeful that the compound could be an additional tool in the fight against the SARS-CoV-2 virus — and perhaps other viruses. So far, the team has shown that the compound can help mice fight off COVID-19, and they’ve turned up suggestive evidence that it might be helping humans, too.

The study’s leader, Marsha Rosner, said, “We don’t know yet if CBD can prevent COVID, but we think our results provide a strong case for conducting a clinical trial.”

While a human clinical trial has yet to be formulated, there are some early promising signs.

According to Rosner, “We show that CBD can stop replication of SARS-COV2 in cells in a dish and that it acts at least up to 15 hours after infection, so that suggests it might be effective even at early times after viruses enter cells.”

ASX cannabis shares minnows in the global market

Medicinal marijuana has only been legally available in Australia since November 2016.

And with the past year’s sell-off, even the bigger ASX cannabis shares are minnows compared to some of their overseas peers in the United States and Canadian markets.

Cann Group, for example, has a market cap of $96 million. Little Green Pharma’s market cap stands at $107 million while Creso Pharma is valued at $101 million.

Certainly not blue-chips.

But if research pans out to show CBD can help stave off COVID infections, they could see some growth potential.

The post ASX cannabis shares in spotlight amid COVID prevention research appeared first on The Motley Fool Australia.

More reading

• Why is the Little Green Pharma (ASX:LGP) share price in the green today?

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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Key points

• Newcrest delivers solid production growth in the second quarter
• Management expects this trend to continue in the second half
• FY 2022 production guidance has been reaffirmed

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The Newcrest Mining Ltd (ASX: NCM) share price is under pressure on Friday morning.

At the time of writing, the gold miner’s shares are down 4% to $22.050.

Why is the Newcrest share price falling?

The Newcrest share price is falling today after a pullback in the gold price offset any positives from its second quarter production report.

In respect to the latter, for the three months ended 31 December, Newcrest delivered gold production of 436koz and copper production of 26kt. This was an increase of 10% and 7.7%, respectively, quarter on quarter.

This production growth was driven by its Cadia, Lihir, and Telfer operations, which offset softer performances from the Red Chris and Fruta del Norte operations.

Management notes that Cadia’s mill capacity increased during the quarter, with completion of the replacement and upgrade of the SAG mill motor in November resulting in higher gold production. In addition, mill throughput rates were higher at Lihir and Telfer with a reduction in planned and unplanned shutdown activities compared to the first quarter.

Newcrest achieved this production with an all-in sustaining cost (AISC) of $1,127 an ounce, which resulted in an AISC margin of $588 an ounce. The latter was up 45% from $406 an ounce during the previous quarter.

Looking ahead, management expects its production to increase in the third quarter. After which, it believes the company is on track to deliver its full year production guidance of 1,800koz to 2,000koz.

Management commentary

Newcrest’s Managing Director and Chief Executive Officer, Sandeep Biswas, was pleased with the company’s performance during the quarter.

He said: “We maintained a strong operational focus on maintenance and productivity improvements during the quarter. It was a tremendous achievement for our team to safely complete the replacement and upgrade of the SAG mill motor at Cadia, which is now operating at full capacity. It was also pleasing to receive approval to increase the permitted processing capacity at Cadia from 32Mtpa to 35Mtpa during the period. Across all our operations, we are well positioned for a strong second half and remain on track to meet our FY22 guidance.”

The post Newcrest (ASX:NCM) share price down 4% following Q2 update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX gold shares fall hard. Is now the time to buy?
• 5 things to watch on the ASX 200 on Monday
• Newcrest (ASX:NCM) share price dips despite acquisition approval
• 5 things to watch on the ASX 200 on Friday

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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Key points

• Webjet shares down 12% over the week due to market fears and WA border closure
• COVID-19 cases at the highest since the middle of the month
• Increased focus on North American B2B market

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The Webjet Limited (ASX: WEB) share price has continued its rapid descent following a broader market sell-off in January.

The online travel agent’s shares tumbled again yesterday, this time by 2.95% to $4.61 apiece. This means its shares have lost almost 12% since this time last week, reflecting an 8-month low.

In comparison, the S&P/ASX 200 Index (ASX: XJO) gave up 1.77% to 6,838.3 points on Thursday. The benchmark index shed 6.8% for the week to slump to a 9-month low.

Stock markets around the world have plummeted following concerns of military tension between Russia and Ukraine. In addition, potential interest rate rises and the spread of Omicron have fuelled investors’ worries.

What’s ahead for Webjet shares?

A rise in COVID-19 cases across Australia has led the Western Australian government to postpone the reopening of its borders. This has not only led domestic passengers to delay or cancel holiday plans but also has affected international tourists.

The latest figures show Australia recorded 97,890 COVID-19 cases yesterday, the highest since 15 January.

Double vaccinated interstate and international travellers would have been able to enter Western Australia without quarantine from 5 February. However, the border will now remain closed indefinitely.

Investors appear to have chosen to dump Webjet shares price in light of the multitude of factors impacting the markets.

While Western Australia remains shut, investors will be wondering what this means for the Webjet share price.

In its FY22 first-half results last November, the company noted that its WebBeds business is poised to deliver significant revenue growth.

In particular, management has focused on expanding its domestic offering, with increased penetration into the North American B2B market. This segment is the company’s second biggest market behind the Asia Pacific region in terms of booking numbers.

Even with Western Australia closed for now, Webjet will be churning profit due to its geographical spread. The state does play an important role but is not vital in terms of the company’s operations.

A retained global footprint, hotel supply relationships, and global customer network could boost the company’s revenue.

Total revenue in H1 FY22 stood at $55.4 million, a 145% increase when compared to the prior corresponding period.

Looking ahead, Webjet is scheduled to report its FY22 results towards the backend of May 2022.

Webjet share price recap

It’s been a rollercoaster 12 months for Webjet investors, with its shares down 5% over the period.

The Webjet share price reached a 52-week high of $6.89 in early October when Australia appeared to have managed the pandemic. However, since the outbreak of the Omicron variant, its shares have nosedived to May 2021 levels.

On valuation grounds, Webjet presides a market capitalisation of roughly $1.75 billion, with approximately 380.51 million shares outstanding.

The post What might the WA border closure mean for the Webjet (ASX:WEB) share price? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Why did the Webjet (ASX:WEB) share price fall 7% last week
• ASX travel shares are nosediving today amid border opening delays
• Will the Webjet (ASX:WEB) share price travel higher in 2022?
• Why are ASX 200 travel shares down 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 recommended Webjet 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 fear of US interest rates heading upwards has well and truly wafted across the Pacific, sending the S&P/ASX 200 Index (ASX: XJO) spiralling down 8% this month.

But as The Motley Fool chief investment officer Scott Phillips advises, this is the time to continue buying.

“We’ve been here before,” he said.

“But remember: the ASX has never yet failed to regain, and then surpass, its previous highs.”

But that’s easier said than done. 

Buying while everyone else is selling takes courage.

As such, investors might appreciate some advice from experts as to which businesses have bright post-crash prospects.

Burman Invest chief investment officer Julia Lee this week shared a couple of ASX shares that fit that criteria:

Profitable tech companies are looking appealing now

Software provider WiseTech Global Ltd (ASX: WTC) has seen its shares plummet more than 27% since 4 January.

Lee reckons it’s one to pick up as long as investors enter with a long-term mindset.

“WiseTech is one that’s probably going to struggle a little bit in the short term because Omicron has impacted on cargo container ship volumes,” she told Switzer TV Investing.

“But in the medium term I think the outlook is good.”

She noted that WiseTech is a technology company that actually turns a profit.

“I much prefer the profitable ones at the moment,” Lee said.

“[And] I think that growth story is very much still intact.”

WiseTech shares closed Thursday at $43.31.

The business was one of the best tech stocks to own over 2021, gaining a phenomenal 90.5% over the calendar year.

Everybody loves Goodman

Although it’s a real estate group, Lee picked Goodman Group (ASX: GMG) as a standout for the same reasons as WiseTech.

“It’s not a tech stock but it’s very much benefitting from our online shopping trends and e-commerce.”

Goodman develops and manages industrial properties, counting famous online retailers like Amazon.com Inc (NASDAQ: AMZN) among its clients.

Lee noted that this week some analysts speculated Goodman would upgrade its earnings forecasts in the coming reporting season.

Shaw and Partners portfolio manager James Gerrish told The Motley Fool this week that Goodman is also one of his favourite pick-ups at the moment.

“It’s all about buying quality that’s been sold off… Goodman’s down 16% from its highs,” he said.

“That’s a really high quality company that’s growing really strongly. They’ve got caught up in the sell-off of high valuation stocks.”

The Goodman share price sunk 3.72% on Thursday to close at $22.03.

The post 2 ASX shares to buy in the current bloodbath appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX shares going for dirt cheap right now
• 3 blue chip ASX 200 shares to buy after the selloff
• Is the Wisetech (ASX:WTC) share price a bargain after plunging 26% so far this year?
• Top brokers name 3 ASX shares to buy today
• What happened to ASX tech shares today?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool Australia has recommended Amazon. 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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While the recent market weakness has been disappointing, one positive is that it has brought the shares of some quality companies down to attractive levels.

Two such ASX 200 shares are listed below. Here’s why these beaten down ASX shares could be in the buy zone now:

Westpac Banking Corp (ASX: WBC)

The first beaten down ASX 200 share to look at is Australia’s oldest bank, Westpac.

On Thursday, the Westpac share price hit a 52-week low of $20.00. When its shares tumbled to that level, they were down a massive 26% from their highs. This weakness has been driven by the market volatility, its soft margin outlook, and doubts over its cost cutting aspirations.

One broker that believes the Westpac share price is trading at a very attractive level is Morgans. In fact, the broker believes the bank’s shares offer “considerable value” to investors currently.

Morgans has an add rating and $29.50 price target on its shares. This implies potential upside of 46% over the next 12 months. The broker believes the market is wrong with its cost cutting doubts and feels confident Westpac will achieve its targets.

Xero Limited (ASX: XRO)

Another ASX 200 share that has sold off recently is Xero. This cloud accounting platform provider’s shares dropped to a 52-week low of $104.44 on Thursday.

This has of course been driven by significant weakness in the tech sector following concerns over the prospect of rising rates in the United States. Higher interest rates can be bad for growth shares that trade on sky high multiples. This is because they are used as part of the valuation process. Higher rates generally mean lower valuations.

And while the Xero share price does trade on high multiples, one leading broker isn’t fazed and appears to believe its growth outlook justifies this. As a result, this recent weakness could be a buying opportunity for investors.

Goldman Sachs currently has a buy rating and $158.00 price target on the company’s shares. It believes Xero will almost double its revenue and operating earnings from FY 2021 to FY 2024.

The post Are these beaten down ASX 200 shares now too cheap to ignore? appeared first on The Motley Fool Australia.

More reading

• From hero to Xero (ASX:XRO): share price tumbles 8% to hit 52-week low
• 2 ASX growth shares analysts love
• 2 buy-rated ASX dividend shares with big yields and huge upside potential
• Are these 2 high-growth ASX shares now beaten-up opportunities?
• What happened to ASX tech shares 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 Xero. The Motley Fool Australia owns and has recommended Xero. 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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Could the Betashares Nasdaq 100 ETF (ASX: NDQ) be a good opportunity during this correction for both the global share market and the ASX share market?

It has been a volatile time for plenty of shares, both the mega-caps and the smaller ones.

The Betashares Nasdaq 100 ETF has fallen by 14% since the start of 2022. That’s a pretty large, quick decline for an index that includes many of the biggest technology businesses.

Lower prices don’t always translate into better value for stocks.

But there are plenty of high-quality businesses in this exchange-traded fund’s (ETF’s) portfolio. This is one of the potential reasons to consider this investment.

High-quality businesses

Some of the world’s strongest businesses that have dominant market positions in their respective sector are on the NASDAQ, which is one of North America’s main stock exchanges.

Apple is a massive player when it comes to smartphones. Microsoft is a leader in the office software, cloud computing, and gaming space (particularly with its Activision Blizzard acquisition). Both of those businesses make up more than 10% of the NDQ ETF portfolio.

Then there’s internet search, video streaming, smartphone software and cloud computing business Alphabet. E-commerce and cloud computing giant Amazon is another key player in the ETF’s portfolio. Facebook/Meta is another significant position with its various social media leaders like Instagram.

There are plenty of other leaders in the portfolio such as Tesla, Nvidia, Adobe, Broadcom, Costco, Intel, PayPal, Qualcomm, Texas Instruments, Netflix, Intuitive Surgical, Moderna, ASML, Airbnb and Regeneron. There are a total of 100 positions.

As BetaShares points out, with this one trade on the ASX investors can get access to companies like Apple, Amazon and Google that have changed the way we live.

Management costs

Whilst not as cheap as some other ETFs, the Betashares Nasdaq 100 ETF has an annual management fee of 0.48%. This is cheaper than the typical management fee that would be charged by internationally-focused fund managers.

Diversification

Whilst the NASDAQ is tech-heavy, it could be used by Aussies to increase the diversification of their portfolio, both in geographical terms and in industry terms.

The ASX is dominated by the financial industry and resources when it comes to the weightings of the main indices.

The NASDAQ can provide exposure to these giant tech companies, with many of them generating earnings from across the world.

Some investors like the look of the major tech companies

In a recent Bloomberg podcast, Morgan Stanley fund manager Andrew Slimmon said that investor sentiment could leave the growth names for a while. He doesn’t think the high-growth names are going to see a V-shaped recovery.

However, he said that the big tech names like Microsoft and Alphabet are not trading at extremely high earnings multiples and are some of the ones that could be opportunities.

The post Is the Betashares Nasdaq 100 ETF (ASX:NDQ) an opportunity in this market correction? appeared first on The Motley Fool Australia.

More reading

• 2 top international ETFs for ASX investors
• 2 ASX ETFs with strong growth potential
• These 2 beaten-down growth ETFs could be a buy today
• An ASX XI to take on the world
• Here are Scott Phillips’ top 5 ASX shares for 2022. Is it time to buy?

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS. 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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Key points

• Firebrick Pharma will debut on the ASX at 12:30pm AEDT today
• The company is developing a nasal spray to help treat the common cold. It’s product will also undergo a COVID-19 trial
• Shares in the company were offered for 20 cents a apiece during its IPO

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Shares in Firebrick Pharma Limited (ASX: FRE) – a company developing a virus-killing nasal spray – will float on the ASX this afternoon.

The stock will hit the decks at 12:30pm AEDT after the company raised $7 million through its initial public offering (IPO). Under its prospectus, Firebrick shares were offered for 20 cents apiece.

Here’s what you need to know ahead of the pharmaceutical development firm’s ASX debut.

All the details on Firebrick Pharma’s ASX IPO and float

Shares in Firebrick Pharma will list on the ASX this afternoon after its fully subscribed IPO.

The float follows nearly 10 years of development of its patented nasal spray, Nasodine, with povidone-iodine as its active ingredient, is designed to kill the common cold where it starts – in the nose.

Nasodine has undergone 3 human clinical trials, confirming it is safe and well-tolerated in adults.

Additionally, a phase 3 clinical trial found the product can significantly reduce the severity of the common cold in people with strong symptoms, confirmed viral infections, or who started treatment within 24 hours of symptoms appearing,

According to Firebrick co-founder and chair Dr Peter Molloy, with one more phase 3 clinical trial, Nasodine could be approved as a treatment for the common cold in adults. That clinical trial is set to go ahead in 2022.

If successful, the company will then seek approvals from regulators in its target markets of Australia, the United States, and Europe.

If all goes to plan, Nasodine could launch in Australia in 2023.

On top of its potential to treat the common cold, the company is planning a phase 2 trial to find if its product can help treat COVID-19.

The trial aims to show the product can reduce shedding of the COVID-19 virus. It will go ahead this year in South Africa.

The funds raised in Firebrick’s ASX IPO will go towards ongoing clinical trials, marketing, and operating costs.

Molloy has previously been a marketer and CEO of 4 biotechnology firms, including Race Oncology Ltd (ASX: RAC). Over his career, he has helped launch Betadine Sore Throat Gargle.

Firebrick co-founder, executive director, and chief operating officer (COO), Dr Stephen Goodall, used to be COO of formerly-ASX-listed Viralytics Limited.

At its offer price, the company is expected to list with a market capitalisation of around $33.8 million.

The post Firebrick Pharma (ASX:FRE) is floating on the ASX today. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock just tumbled 12%
• Here’s why the Telstra (ASX:TLS) dividend is back over 4%
• 2 ASX growth shares to buy in February with 40% upside
• 2 ASX dividend shares now offering big yields
• ASX shares set to conquer the carnage: expert

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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 electric car titan Tesla (NASDAQ: TSLA) braked hard Thursday, falling 11.55%. That sounds kind of crazy, seeing as Tesla just crushed on earnings last night, reporting $17.7 billion in sales, when Wall Street had only expected to see $16.4 billion, and earning $2.54 per share (non-GAAP) instead of the predicted $2.26.

So why is Tesla tumbling today?

So what

To find out, let’s take a quick look at Tesla’s numbers.

Tesla grew its revenue 65% year over year in the fourth quarter. Gross profit margin on that revenue — which climbed all year long — grew yet again in Q4. Indeed, it was up 8.2 percentage points from last year’s Q4 at 27.4%. Operating profit margin expanded even faster, nearly tripling year over year to top out at 14.7%.

To put that in context, General Motors‘ operating profit margin is currently just 9.5%, and Ford Motor Company‘s is only 2.2%. So if you’re looking for a reason why Tesla stock gets a valuation multiple much higher than GM or Ford enjoy, well, that’s your reason right there.

Finally, on the bottom line, Tesla’s profit for the quarter came to $2.05 per share under generally accepted accounting principles (GAAP) — not quite as high as the $2.54 per share pro forma number that got all the headlines last night, but still a 754% increase over Q4 a year ago.

Now what

Investors, however, don’t seem as impressed with what Tesla has “done for them lately.” What really concerns them are what Tesla plans to accomplish in 2022. (And admittedly, with Tesla stock trading for 330 times earnings, that’s a valid concern.)

Unfortunately — both for Tesla and for its stock price — the company was pretty coy about what it expects for the year ahead.

Guidance for 2022 was limited to a bald assertion that Tesla hopes to “achieve 50% average annual growth in vehicle deliveries … over a multi-year horizon,” and a warning that “equipment capacity, operational efficiency and the capacity and stability of the supply chain” could be limiting factors preventing it from hitting that target. As management admitted, Tesla’s factories “have been running below capacity for several quarters” because of supply chain snarls, and Tesla fears that this “is likely to continue through 2022.”

Final notes: Adding to the bad news, Tesla ruled out potential 2022 catalysts such as a new $25,000 Model 2 economy-class electric car, reports TheFly.com. Indeed, according to TheFly, Tesla “says it won’t introduce [any] new vehicles [at all] in 2022.”

Evidently, that’s not what investors wanted to hear. 

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

The post Why Tesla stock just tumbled 12% appeared first on The Motley Fool Australia.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Tesla. 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.

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

from The Motley Fool Australia https://ift.tt/32DXeLb