Picking ASX shares that prove to be dividend winners is always a tricky game. As is any other kind of investing for that matter. But it’s the unique metrics that dividend investors have to navigate which makes this area of investing a little more unique. All investors know upfront what kind of dividends an ASX share has paid out over the past 12 months. And, by extension, the kind of dividend yield each ASX share may possess.

But as investors should know, just because an ASX share has a high dividend yield, it doesn’t mean investors can take that to the bank. A common investing mistake is to choose an ASX dividend share due to a seemingly fat yield, only to have that yield pared back. Not to mention a simultaneous share price fall to boot. This scenario is often described as a ‘dividend trap’.

So let’s look at some ASX shares today that seem to be offering outsized yields right now. Could any of them be a dreaded dividend trap?

When is a high dividend yield just trap bait?

Magellan Financial Group Ltd (ASX: MFG) is one such share. Magellan has had a horrible year, losing around 66% of its value. But this has pushed up Magellan’s trailing dividend yield to an eye-watering 15.57% on current pricing. The interesting thing about Magellan is that when the company reported its half-year earnings last month, it declared an interim dividend of 110.1 cents per share, which coincidentally was paid out today.

That was Magellan’s highest-ever interim dividend. So why aren’t investors flocking to this company’s massive 15%-plus yield? Well, Magellan makes its money from its funds management business. And the company has been experiencing record fund outflows over the past few months for a number of reasons.

So it seems that investors are betting that this outflow will start to bite the company’s ability to keep funding dividends at these kinds of levels. We’ll have to see if this turns out to be the case, but at least one broker isn’t too sure it will.

Another ASX dividend share with a 15% yield right now

Fortescue Metals Group Limited (ASX: FMG) is another ASX dividend share seemingly offering a monster dividend yield right now. On current pricing, the iron ore giant has a trailing dividend yield of close to 15.5%. That’s even after the company cut its interim dividend by 41% as announced in its earnings last month. The cut was the result of Fortescue directing more capital towards its emerging Fortescue Future Industries hydrogen business.

Fortescue’s profits (and dividends) are intrinsically tied to the price of iron ore itself. Last month, Fortescue announced that its average revenue per dry metric tonne over the half was US$96. But iron ore has continued to boom in recent months, and is now going for a six-month high above US$160 a tonne.

If the iron ore price continues to hold at these levels, and Fortescue can continue to extract it at relatively low costs (made harder recently by surging oil prices), we could well possibly see dividends continue to roll in at these high rates. But again, we shall have to wait and see.

The post 15% yield! But are these ASX high-yield shares dividend traps? appeared first on The Motley Fool Australia.

More reading

• Down 31% this year: Top broker tips more pain for Magellan (ASX:MFG) share price
• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

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. 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 Woodside Petroleum Limited (ASX: WPL) share price is dipping into the red today.

At time of writing, shares in the S&P/ASX 200 Index (ASX: XJO) energy giant are down 2.6% to $33.52.

But don’t go breaking out your tiny violin for Woodside shareholders just yet.

Today is the first time in 7 trading days that the Woodside share price has gone backwards.

Yesterday, shares closed at $34.41. That’s the highest price in more than 2 years, going all the way back to February 2020 before the pandemic knocked the stuffing out of oil and gas prices.

What’s happening with the Woodside share price?

It’s not just Woodside coming under some selling pressure today.

The S&P/ASX 200 Energy Index (ASX: XEJ) is down 2.7%, compared to a 0.2% retreat on the ASX 200.

Why are ASX energy shares underperforming?

It all boils down to oil and gas prices.

After soaring higher all month following oil-rich Russia’s aggressive posturing and then invasion of Ukraine, crude oil prices dipped overnight. Brent crude fell 0.7% to US$122 per barrel, according to data from Bloomberg.

While that’s no major fall, and still up from US$91 per barrel just a month ago, investors may be looking to take some profits off the table after riding ASX energy shares to multi-year highs.

As for the Woodside share price, despite today’s retrace it remains up 48% for the year.

The post Woodside (ASX:WPL) share price slips for first time in 7 days appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Woodside (ASX:WPL) share price surges another 9% today as oil resumes rally
• Why Argosy Minerals, De Grey, Whitehaven, and Woodside shares are racing higher

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 Magellan Financial Group Ltd (ASX: MFG) share price is enjoying a rare day in the green today and is now up 1.67% at $14.59.

However, it’s been a tumultuous year for Magellan shareholders who have seen the stock lose 66% of its value in the past 12 months. It is also down 31% this year to date.

As shown below, the gap between the benchmark S&P/ASX 200 Index (ASX: XJO) and the Magellan share price is widening substantially as time goes on.

One broker thinks it’s unlikely the fund manager’s shares will return to their former high, at least in the near term. It cites February’s underperformance across each of Magellan’s three investment strategies. Here’s what UBS analysts had to say recently.

More downside to come for Magellan?

Analysts at Swiss investment bank UBS are bearish on the Magellan share price and reckon there is more pain ahead for shareholders.

The broker notes that February was a poor month for the fund manager, with each of its core strategies underperforming their respective benchmarks.

Originally it was just the global strategy’s performance that had been called into question. However, UBS points out the underperformance has crept its way into the infrastructure product as well – such that three-year rolling returns are now negative.

The risk for Magellan, according to UBS, is that this underperformance stems the volume of outflows in its infrastructure fund as it did to the global strategy.

This “outflow risk” is unlikely to have been factored into consensus forecasts and earnings estimates, UBS says.

UBS has rated Magellan a sell since September last year and currently holds that rating with a $13.50 price target.

Meanwhile, JP Morgan also just downgraded Magellan to underweight, citing valuation and the business risks it is facing.

“However, we remain cautious on the outlook for MFG, noting substantial pressures that the business is facing,” it said in recent note.

JP Morgan analysts also highlight the outflow risk, and that inflows are “likely to remain weak from recent events, including Mr Douglass’ leave of absence triggering mandate losses”. Chairman and chief investment officer Hamish Douglass recently took a medical leave of absence to focus on his health.

“We expect the stock to remain under pressure until fund performance improves and the near-term fund flow profile stabilises,” it added.

According to Bloomberg Intelligence, 64% of brokers have Magellan as a sell right now, with just one broker advocating to buy. Curiously, these numbers are basically unchanged from a year ago.

Magellan share price summary

It’s a sea of red for the Magellan share price over all recent time periods. In addition to its big falls over the past 12 months and this year to date, it is also down 11% over the past month and nearly 21% over the past week.

The post Down 31% this year: Top broker tips more pain for Magellan (ASX:MFG) share price appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher
• Top brokers name 3 ASX shares to sell next week
• These were the worst performing ASX 200 shares last week
• Playing limbo… Magellan (ASX:MFG) share price hits 7-year low
• Why Magellan, Nick Scali, Qantas, and Zip shares are tumbling 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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It’s a rough day on the broader market, but these ASX mining shares are performing just fine.

They’ve each surged to their highest point in at least 12 months on Tuesday.

That’s despite the S&P/ASX 200 Index (ASX: XJO) slipping 0.12% while the All Ordinaries Index (ASX: XAO) is down 0.26% at the time of writing.

Additionally, the S&P/ASX 200 Resources Index (ASX: XJR) is in the red, having plunged 2.17%.

So, what’s boosted these ASX mining shares to new 52-week highs today? Let’s take a look.

These ASX mining shares hit new 52-week highs on Tuesday

Westgold Resources Ltd (ASX: WGX)

The Westgold share price is continuing its upward momentum on Tuesday, gaining 4.2% in intraday trade to reach a new 52-week high of $2.46.

The stock is likely being boosted by the rising gold price. After moving higher overnight, the price of gold is continuing to trade in the green for most of today’s session so far.

The commodity’s price was driven to its highest point since 2020 amid concerns of Russia’s invasion of Ukraine and rising oil prices, as reported in the Wall Street Journal.

Zimplats Holdings Ltd (ASX: ZIM)

The Zimplats share price has also launched to its highest point in 12 months today.

Its intraday high – and new 52-week high – is $29.73. That represents a 5.1% gain on its previous close.

The platinum group metals producer’s gains come as precious metals prices surge.

According to News24, the price of palladium – as well as platinum – has also soared amid Russia’s continued assault on Ukraine.

Russia is responsible for a hefty chunk of the world’s palladium production.

Red 5 Limited (ASX: RED)

Another ASX gold mining share has topped its own 12-month record today.

The Red 5 share price hit a new 52-week high of 34.5 cents, representing a 4.5% increase on its previous close.

AngloGold Ashanti CDI (ASX: AGG)

It’s a similar story for stock in AngloGold Ashanti.

It hit a new 52-week high of $7.10 earlier today. That’s 3.9% higher than its share price was at the end of Monday’s session.

Nickel Mines Ltd (ASX: NIC)

Finally, the Nickel Mines share price launched higher in early trade before tumbling into the red.

After opening 6% higher at $1.75, the ASX mining share hit a new 52-week high of $1.79.

It has since tumbled to trade at $1.61 — that’s 2.27% lower than its previous close.

Once again, commodity prices are likely behind the stock’s gain.

As The Motley Fool Australia reported earlier today, nickel prices have shot up amid supply concerns sparked by the Russian invasion of Ukraine.

It’s harder to explain Nickel Mines’ subsequent tumble. However, it’s joined in the red by fellow nickel producers IGO Ltd (ASX: IGO) and Mincor Resources NL (ASX: MCR).

The post 5 ASX mining shares smashing 52-week highs today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Nickel Mines (ASX:NIC) share price just hit an all-time high
• The price of nickel is soaring and these ASX mining shares are cashing in
• Here’s why ASX gold shares are having another stellar day
• Nickel Mines (ASX:NIC) share price surges 6% on full-year earnings
• Why has the Nickel Mines (ASX:NIC) share price dumped 15% in a month?

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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The CSL Limited (ASX: CSL) share price is currently up by 3%. It has been reported that its new influenza vaccine has been approved by regulators for younger people.

CSL is one of the world’s largest biotech businesses with a large vaccine division.

Latest win for CSL

The Australian has reported that the new generation of CSL’s influenza vaccine has received regulatory approval.

This is the new type of cell-based influenza vaccine called Flucelvax Quad. According to CSL, this is significantly more effective than the protein-based vaccines that are grown in eggs and it can also be produced at a significant scale at shorter notice.

It was a year ago that CSL received approval for the vaccine’s general use. The ASX healthcare share has sold over 100 million doses of it since the Therapeutic Goods Administration gave approval.

This vaccine has now been approved for children down to the age of 2 years old. It was reported by the newspaper that sales “are expected to soar”.

This could be an important factor to reduce hospitalisations

The Australian quoted CSL’s Jonathan Anderson, who is the head of medical affairs at Seqirus – the vaccine division of the ASX healthcare share.

With our healthcare system facing pressure from COVID-19 and influenza this winter, achieving high influenza vaccination coverage is crucial in ensuring we help to reduce the strain on hospitals.

This is even more important this year, and the expanded approval of Flucelvax Quad will be timely to give patients and health care professionals additional options.

The fact that much younger children are now eligible for this could be helpful because children that are under five are at more risk of severe flu, according to NSW Health.

Is the CSL share price an opportunity?

Since the start of 2022, the CSL share price has fallen by 13%.

During that time, the healthcare business has reported its FY22 half-year result. Whilst revenue increased 4%, net profit after tax (NPAT) fell by 5% in constant currency terms to $1.76 billion. The company said that there was a strong performance by the influenza vaccine business, Seqirus, which saw seasonal flu vaccine sales up 20%.

A new cell culture influenza vaccine facility has commenced construction in Australia.

CSL has received strong support from Vifor shareholders for the acquisition and plans to declare the offer successful. It said 74% of the shares have been tendered. The regulatory approval process for the acquisition is “on track” as well and management is confident that the remaining conditions will be satisfied.

Citi thinks that the CSL share price is a buy, with a price target of $335 – that’s a potential upside of around 30%.

On Citi’s numbers, the CSL share price is valued at 30x FY23’s estimated earnings.

The post CSL (ASX:CSL) share price lifts following new regulatory approval appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher
• 2 blue chip ASX 200 shares analysts rate as buys this month
• Payday? Here’s why the CSL share price is sliding this morning…
• ASX 200 (ASX:XJO) midday update: Block, Zip tumble, QBE’s asset sale
• The CSL (ASX:CSL) share price is falling today, but here’s what investors can look forward to next week

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 CSL 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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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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The Nickel Mines Ltd (ASX: NIC) share price hit an all time high today amid surging nickel prices.

The company’s shares are currently trading at $1.577 each, a 4.42% fall. However, in earlier trade, the Nickel Mines share price hit an all time high of $1.77. This represented a 7% increase on the previous closing price of $1.65.

Let’s take a look at what is happening with Nickel Mines shares today.

Nickel prices hit record prices

Nickel Mines shares hit an all time today on the back of record nickel prices on commodity markets. The nickel price shot up 90% to an all-time high on global markets overnight, according to a report on NAB trade.

Supply chain concerns are impacting the nickel price amid the Russian invasion of Ukraine.

Economic sanctions being imposed on Russia are sparking fears of a shortage, given Russia supplies 10% of the world’s nickel.

Citi analysts are optimistic about nickel prices in the short term, a report cited by NAB stated. The note said:

Analysts at Citi are bullish on near-term nickel prices, citing supply concerns stemming from heightened Russia-Ukraine conflict; sees miners benefiting from price surge.

The Nickel Mines share price has surged 22% since market close on 22 February alone.

On 23 February, the company’s shares gained more than 8%. In its financial results for the full year ended 31 December, Nickel Mines reported a 31% boost in profit from US$165.1 to to US$216.8 million.

Nickel is used in batteries for electric vehicles (EV) and in the production of stainless steel. EV sales are predicted to hit 20 million by 2025 and more than 70 million by 2040.

The company acquired an 80% interest in the Angel Nickel RKEF project during the year. Nickel Mines also recently completed the acquisition of an initial 10% of the Oracle Nickel Project in Indonesia. By 22 December, the company plans to own 70% of the mine.

Nickel Mines share price snapshot

The Nickel Mines share price has soared 25% in the past year and is up 13% year to date.

In the past month, the miner’s shares have surged 11% and have gained 6% in the past week alone.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.

The post Here’s why the Nickel Mines (ASX:NIC) share price just hit an all-time high appeared first on The Motley Fool Australia.

More reading

• The price of nickel is soaring and these ASX mining shares are cashing in
• Nickel Mines (ASX:NIC) share price surges 6% on full-year earnings
• Why has the Nickel Mines (ASX:NIC) share price dumped 15% in a month?
• Nickel Mines (ASX:NIC) share price slides despite ‘clear endorsement’
• ‘Building a Nickle Empire’: Nickel Mines (ASX:NIC) seizes future-facing nickel opportunities

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 All Ordinaries Index (ASX: XAO) is in the red in early afternoon trade trade, down 0.42%.

But not all stocks are sliding.

Below we look at 3 tiny ASX mining shares bucking the wider selling pressure today to post some outsized gains.

ASX investors reward “spectacular” copper intersections

First up is ASX resource minnow Tennant Minerals Ltd (ASX: TMS), with a market cap of around $29 million.

The ASX mining share entered a trading halt after market close on Thursday and came roaring back today after reporting “spectacular copper intersections” at its Bluebird Prospect in the Northern Territory.

Commenting on the drill results, Tennant Minerals chairman, Matthew Driscoll said:

BBDD0009 is the first hole drilled to test the Bluebird copper-gold zone below previous drilling, and to return a 50-metre intersection of high-grade copper with gold, that approximates true-width, is a spectacular result.

The Tenant Minerals share price, up more than 55% in earlier trade, is currently up 41% for the day.

ASX mining share leaps higher on copper gold intersections

The next ASX mining share heading higher today is Stavely Minerals Ltd (ASX: SVY), with a market cap more than $104 million.

The Stavely share price took off after the explorer reported “outstanding new results” from drilling at its Cayley  Lode deposit within its 100%‐owned Stavely Copper‐Gold Project in Victoria.

Those intersections include up to 19.65% copper, 8.29g/t of gold and 202g/t of silver.

Commenting on the drilling results, Stavely Minerals managing director, Chris Cairns said:

The intersection of 92.1m of inter‐fingered sulphide mineralisation may well be the longest down‐hole intersection of mineralisation recorded at the Cayley Lode to date. The significance is that, if follow‐up drilling is able to confirm the continuity of these types of widths of mineralisation along strike and up/down‐dip, there is significant capacity for these intersections to contribute material additions to the upcoming Mineral Resource Estimate.

The Stavely Minerals share price soared more than 16% higher on the news and is currently up 10% for the day.

More strong results from this ASX mining share

Not to be outdone, Estrella Resources Ltd (ASX: ESR), with a market cap of around $40 million, reported spectacular massive sulphide assay results from its 100% owned Carr Boyd Nickel and Copper Project in Western Australia.

Commenting on those assays, Estrella managing director, Chris Daws said:

The Carr Boyd project continues to produce some exceptional results, with numerous intersections of massive nickel sulphide and some very high nickel and copper assays associated with these drill hits…

The high-grade results received from hole CBDD064 beneath the historic Carr Boyd mine not only sees our geological model intact but also bolsters our confidence to unlock further massive nickel sulphides.

The ASX mining share leapt 40% in early trade. At time of writing, the Estrella share price is up 22% for the day.

The post 3 tiny ASX mining shares soaring from new discoveries appeared first on The Motley Fool Australia.

More reading

• Tennant Minerals (ASX:TMS) share price explodes 39% on ‘spectacular’ find

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 hearing technology player Cochlear Limited (ASX: COH) are edging ahead today and, at the time of writing, are 0.46% in the green at $215.44 apiece.

Unlike many of its S&P ASX 200 Index (ASX: XJO) peers, the Cochlear share price has held gains across the last 12 months and into the new year. This year to date, Cochlear shares are flat whereas, in the previous year, they climbed 8%.

Despite their positive momentum on the chart, one broker isn’t so rosy on the outlook for Cochlear shares in 2022, urging its clients to either sell or downsize their positions.

Why does this broker say sell Cochlear shares?

Analysts at RBC Capital Markets are cautious about the hearing specialist given the company’s slowing sales growth and questionable valuation.

The broker initiated coverage on the Cochlear share price and anticipates it to underperform in 2022. It notes its revenue growth has fallen off, alongside other growth metrics in recent times.

This means Cochlear no longer commands the valuation premium it once did, seeing as cash flows into the future don’t appear to be as large as first thought.

Not only that, but the seniors market for hearing technology is becoming more saturated, meaning Cochlear runs the risk of losing market share to competitors in that space, RBC says.

RBC values the company at a significantly discounted $149 per share, suggesting a downside potential of 31% at the time of writing.

It’s not all downbeat – one broker upgrades to neutral

Meanwhile, analysts at fellow broker Morgan Stanley note that Cochlear’s annual guidance looks to be a bit soft, even amid the weakening sales outlook.

The broker reckons Cochlear will offset the tightening sales through service and upgrade revenue which it feels will continue to hold strong in FY22.

For reference, Cochlear grew services revenue by 21% year on year and acoustics sales were 40% higher from the same time last year.

Given its healthy assessment on the stock, Morgan Stanley upgraded its rating to equal-weight from underweight to reflect the more positive sentiment.

It values Cochlear at $208 per share after raising its price target by 16% in a recent note.

The consensus price target for Cochlear is $221 per share, according to Bloomberg Intelligence, meaning the sentiment is still bullish from the 21 analysts covering the stock.

In fact, 42.1% have it as a buy, another 42.1% have it as a hold right now, with the remaining 15.8% advocating to sell Cochlear shares.

The post Why does this broker say to sell Cochlear (ASX:COH) shares in 2022? appeared first on The Motley Fool Australia.

More reading

• Morgans just upgraded these ASX shares to buys
• These were the best performing ASX 200 shares last week
• Top brokers name 3 ASX shares to buy today
• ‘Clear leader in a defensive industry’: Cochlear (ASX:COH) share price jumps on broker upgrade
• 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. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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 Calidus Resources Ltd (ASX: CAI) share price is racing higher today, up 5.06% to 83 cents at the time of writing.

Investors are responding well to a company announcement from Calidus today regarding a discovery by its 50%-owned subsidiary, Pirra Lithium.

Pirra Lithium, owned equally by Calidus and Haoma Mining NL, was formed last month to explore potential lithium assets over the Pilbara region of Western Australia. The Calidus share price has taken off since late 2021, as shown below.

Why is the Calidus share price tracing higher?

The company entered a trading halt on Monday pending an announcement about its lithium exploration results. Today, it emerged from the trading halt with the news that has sent the Calidus share price soaring.

The company advised the team at Pirra Lithium has identified a “substantial lithium-bearing pegmatite with a mapped strike length of more than 1km” in the Eastern Pilbara.

It collected 34 rock-chip samples and assay results show 0.66%-2.34% lithium oxide (Li2O). Two samples of “metasomatised country rock adjacent to the pegmatite” yielded 2.78% and 2.91% Li2O, respectively.

“Along each traverse, samples were collected 3-12m apart to ensure that all the main components of the pegmatite, including lepidolite- and spodumene-poor zones, were sampled,” the company said.

With lithium prices up 600% year-on-year to all-time highs, even a whisper of potential lithium discovery has seen ASX lithium players shoot higher in recent times.

Lithium spot has gained 29% in the past month for instance, and is up 77% this year to date alone.

Following its latest findings, Calidus has planned an initial 2,500-metre reverse circulation (RC) drilling program to further test the pegmatite.

After initial discoveries, the company says it identified another possible separate body north-east of this location. As a result, an additional 40 rock-chip samples were collected and have been sent to the laboratory for priority assay.

Calidus also notes it has made applications for Programs of Work (PoW) and lodged heritage surveys to facilitate drilling, “targeting the June quarter of 2022”.

Management commentary

Speaking on the results fuelling the Calidus share price today, managing director Dave Reeves said:

It is already clear that we are in the early stages of an exciting lithium discovery with both scale and strong grades. There is a compelling business case to accelerate exploration now we have confirmed lithium grades for this significant outcropping pegmatite.

Despite the pegmatite being located close to the Hillside – Marble Bar Road, there is no record of geological mapping or sampling in the area and the area has never been drilled. These results highlight the immense prospectivity of the large tenement package and rights owned by Pirra Lithium.

Calidus share price snapshot

The Calidus share price has soared more than 101% over the past 12 months and 32% this year to date.

During the past month, its shares prices have shot north by 26%. As a result, Calidus is front-running the broader indexes this year by a country mile.

The post Calidus Resources (ASX:CAI) share price leaps 5% on ‘significant’ find appeared first on The Motley Fool Australia.

More reading

• 3 ASX junior gold mining shares going gangbusters in 2022

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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It has been another disappointing day for the Zip Co Ltd (ASX: Z1P) share price.

Much to the delight of the short sellers targeting the buy now pay later (BNPL) provider, its shares have fallen a further 5% to a new 52-week low of $1.54.

This means the Zip share price is now down 64% in 2022 and nearing multi-year lows.

When will the Zip share price stop sinking?

That’s the million-dollar question. Unfortunately, opinion is largely divided on where the Zip share price is going next, but clearly the bears are in control.

Among those bears are the team at UBS. In December, the broker actually upgraded the company’s shares to a neutral rating with a $5.20 price target.

At that point, it felt the risk/reward on offer with its shares was reasonably attractive following a bout of share price weakness.

However, less than three months later, the broker has had a change of heart and last week downgraded Zip’s shares to a sell rating and cut the price target on them by approximately 80% to just $1.00. This is the lowest price target the broker has ever had on the company and implies further potential downside of 35%.

For context, the Zip share price has not traded at that level since 2018. Since then, the company has gained a foothold in the massive US market through the successful acquisition of the QuadPay business and expanded across Europe and Asia. However, despite these developments its valuation is crumbling before our eyes. How sentiment has changed in the sector!

Why is it a sell?

UBS downgraded Zip’s shares for a number of reasons. One was its disappointing half year result, which revealed a much larger than expected loss. The other reasons include dilution from its capital raising, a higher discount rate as part of its valuation model, delays in reaching profitability, and its uncertain outlook.

One small positive, though, is that the broker suspects that the company’s recent capital raising will be its last for working capital purposes. It appears optimistic that Zip’s cash balance will be sufficient to see it through to profitability.

Though, clearly for UBS, that positive isn’t enough to offset the negatives listed above.

The post Is the Zip (ASX:Z1P) share price heading on a one-way street to $1? appeared first on The Motley Fool Australia.

More reading

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• Glitch! Why are ASX tech shares getting hammered on Monday?
• Why we just sold Zip and bought Pro Medicus (ASX:PME) shares: fundie
• Bargain hunting: Zip (ASX:Z1P) co-founders snap up $1.5 million of shares
• Has Zip (ASX:Z1P) got this key metric wrong in the Sezzle takeover?

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 ZIPCOLTD FPO. 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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