Key points

• Novonix has signed a technology development agreement with Phillips 66
• The two companies are aiming to commercialise next-generation anode materials for lithium-ion batteries
• This is part of its plan to establish a North American supply chain to power the growing battery sector and facilitate a sustainable future

---

The Novonix Ltd (ASX: NVX) share price is falling on Thursday despite the release of a positive announcement.

In afternoon trade, the battery materials company’s shares are down 1% to $9.14.

What did Novonix announce?

This morning Novonix announced a technology development agreement with US energy giant and major shareholder Phillips 66.

According to the release, the two parties will work together to advance the production and commercialisation of next-generation anode materials for lithium-ion batteries.

The release notes that the agreement will see Phillips 66 and Novonix leverage their industry-leading positions, as well as existing intellectual property and research and development capabilities, to drive commercial development of optimised feedstocks and lithium-ion anode materials with reduced carbon-intensive processing.

Phillips 66’s Vice President of Energy Research & Innovation, Ann Oglesby, commented: “This agreement builds on our strategic investment in NOVONIX and is a natural next step for two companies committed to innovation and a lower-carbon future. It sets the framework for the companies to work closely and collaboratively to accelerate the development of next-generation materials for the U.S. battery supply chain.”

This sentiment was echoed by Novonix CEO, Chris Burns.

He said: “We are excited to further our relationship with Phillips 66, and together we plan to develop integral processes, from manufacturing precursor materials to producing high-capacity long-life synthetic graphite anode material intended to improve battery performance, lower cost and decrease environmental impact.”

“We believe NOVONIX is currently the only supplier with plans to provide large volumes of synthetic graphite anode material in the U.S., and this partnership will accelerate our mission to establish a North American supply chain to power the growing battery sector and facilitate a sustainable future,” he added.

The post Novonix (ASX:NVX) share price down despite Phillips 66 technology development agreement appeared first on The Motley Fool Australia.

More reading

• The Novonix (ASX:NVX) share price just tanked 10%. What’s going on?
• Here’s why ASX 200 tech shares (ASX:XTX) outperformed today
• Here are the top 10 ASX shares today
• Why AGL, Genetic Signatures, Liontown, and Novonix shares are charging higher
• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher

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.

from The Motley Fool Australia https://ift.tt/3IkpBND

Key points

• The Netwealth share price is in the green today following its quarterly update
• Further growth across all of the platform’s major metrics were reported
• A new arrangement with the ANZ bank will see cash account margins shrink to 50 basis points

---

The Netwealth Group Ltd (ASX: NWL) share price is being embraced by investors today. This follows the release of the financial services platform provider’s December quarterly update.

Following the release this morning, the Netwealth share price opened slightly higher, at $16.45. At the time of writing, shares in the Aussie fintech are now commanding a price of $16.63, up 1.22% from its previous close.

Netwealth share price up on sustained growth momentum

• Total funds under administration (FUA) reach $56.6 billion, up 46% year-on-year
• Net inflows increase 41% from prior corresponding period to $3.6 billion
• Funds under management (FUM) surge 48.3% year-on-year to $13.8 billion
• Managed account balance increase 53.9% year-on-year to $11.7 billion
• Category market share improves to 5.2% at the end of September 2021
• Increase to FY22 FUA net inflows guidance, now to exceed $13.5 billion.

What else happened in the second quarter?

Netwealth shareholders will be happy to see the platform notched up additional account number growth in the December quarter. According to the update, accounts increased to 107,103 at the end of the period — this represents a 21.4% increase from the same time last year.

Furthermore, Netwealth also disclosed additional details surrounding the arrangement for its cash deposits. The arrangement currently in place with Australia and New Zealand Banking Group Ltd (ASX: ANZ) gives the company a margin of 95 basis points above the official cash rate.

A new deal with ANZ will see Netwealth take a 50 basis point margin on all cash accounts from 25 March 2022. When the company announced the termination of its previous agreement with ANZ in March 2021, the Netwealth share price took a 15% haircut.

What’s next?

Looking forward, Netwealth expects margins to improve as the Reserve Bank of Australia increases the cash rate. If the official rate were to bounce back to 50 basis points, the company estimates margins would exceed the 105 basis points currently received.

Notably, the platform provider has upgraded its FUA net inflows guidance for FY2022. This has been done based on the favourable conditions being experienced within the sector. As a result, the forecast is now for in excess of $13.5 billion in net inflows.

Netwealth share price snapshot

The Netwealth share price has been trading sideways since hitting an all-time high in October 2020. In the past year, the company’s shares have lifted a poultry 4.4% compared to the S&P/ASX 200 Index (ASX: XJO) rising 8.1%.

Based on the current valuation, Netwealth is offering up a 12-month trailing dividend yield of 1.13%.

The post Netwealth (ASX:NWL) share price lifts on record net inflows of $3.6bn appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip’s Q2 update, Santos and Woodside deliver record revenue
• How are ASX bank shares performing today?
• Analysts name 2 ASX dividend shares to buy
• 2 ASX shares with growing fully franked dividends
• ANZ (ASX:ANZ) will lag other majors on this key growth metric in 2022 says top broker

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netwealth. The Motley Fool Australia owns and has recommended Netwealth. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3fEprnU

Key points:

• The Sandfire share price is up 1.1% this morning
• The miner released its latest quarterly report today
• Sandfire included in the benchmark S&P ASX-200 index

---

The Sandfire Resources Ltd (ASX: SFR) share price is finally taking off after the company released a positive December 2021 quarterly report this morning.

Despite revealing promising updates on its various projects, shares in the Australian miner and explorer had a shaky start in early trading before heading into the green. At the time of writing, the Sandfire share price is up 1.1% trading at $7.27 apiece.

Let’s take a closer look at Sandfire’s operations for the second quarter ending 31 December 2021…

Q2 FY22 results for Australian miner

• Production guidance maintained but cost guidance increased at Degrussa site
• “Maiden” mineral resource estimate completed at gold deposit project in Western Australia
• Acquisition of MATSA mine to completed by 31 January
• Construction of Botswana project continuing
• Definitive feasibility study of Motheo site to be completed by fourth quarter
• Legal challenges ongoing over USA Black Butte site.

What happened in Sandfire’s second quarter?

Sandfire’s big picture plans appear to be right on track with managing director and CEO Karl Simich saying the miner had “hit the ground running” this year.

Its acquisition of the MATSA Mining Complex in Spain (initially announced back in September) was approved by Spanish Government officials last month and is set to be completed by the end of January.

Simich said the merge would make Sandfire “the largest copper-focused base metal producers on the ASX, with high quality operations in Spain and Australia and an impressive growth pipeline and exploration portfolio that will drive our growth for decades to come”.

Sandfire and MATSA teams had been working together to combine and integrate operations, he said.

Looking more locally, Sandfire produced strong copper and gold results from its DeGrussa site in Western Australia. This is on track with the company’s guidance for FY2022.

Despite praise for the overall “operational, cost and financial performance” of the site, the company advised cost guidance was increased from $1.10 to $1.20/lb due to the price of fuel, shipping costs and trending inflation.

Back in December, an indicated 2.8 million tonnes grading 2.5g/t gold for 223,000 ounces of contained gold was obtained from Sandfire’s Old Highway Gold Deposit in WA.

What did management say?

Commenting on the results, Simich said:

Sandfire has hit the ground running in 2022 following an excellent December quarter for the group.

Sandfire’s inclusion in the benchmark S&P ASX-200 index towards the end of the quarter marked a fitting culmination to what was a transformational year for our business in 2021 and will put Sandfire on the radars of a much wider range of global investors.

Challenges ahead in 2022

In today’s release, Sandfire advised coronavirus challenges were still front of mind as the company prepared for the reopening of WA borders in early February.

Construction of its Botswana copper mine was progressing on schedule, while Sandfire was managing the transmission of the COVID variants.

The company said drilling at the Montana-based Black Butte project (in which Sandfire holds an 87% interest) was continuing with 4,000 metres already achieved and two extra drills implemented to boost completion.

Meanwhile, the company has experienced “legal challenges” over environmental concerns with the project.

Even though this not yet interfered with the development and construction of the site, and Sandfire “does not believe that the legal challenge has any merit”, the miner says interruption is still possible while a decision remains pending.

As of 31 December, the (unaudited) Group cash on hand was $1.65 million.

Sandfire share price snapshot

The Sandfire share price has increased 49% over the last 12 months.

Sandfire shares hit a 52-week-low of $4.45 in late January last year, the day before the company released its previous December quarterly report.

The company has a market capitalisation of around $2.97 billion at the time of writing and a price-to-earnings ratio (P/E) of 7.91.

The post The Sandfire (ASX:SFR) share price lifts on positive quarterly results appeared first on The Motley Fool Australia.

More reading

• Why BWX, PolyNovo, Sandfire, and Sonic shares are tumbling today
• What’s happening with the Sandfire Resources (ASX:SFR) share price today?
• ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update
• Why Australian Clinical Labs, Magellan, Sandfire, and Telix shares are rising

Motley Fool contributor Alice de Bruin 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.

from The Motley Fool Australia https://ift.tt/3Ajai51

Key Points

• BetMakers share price up 7.87% to 68.5 cents
• New CEO of North American operations
• Bolsters existing management team

---

The BetMakers Technology Group Ltd (ASX: BET) share price is making a comeback on Thursday. This follows the company’s latest announcement regarding the appointment of a new CEO for its North American operations.

At the time of writing, the betting technology company’s shares are swapping hands for 68.5 cents, up 7.87%.

BetMakers bolsters leadership team

Investors are snapping up BetMakers shares after the company revealed that it has secured the services of an experienced gaming industry leader.

According to its release, BetMakers advised that Christian Stuart has been appointed as CEO of the North American operations, effective immediately.

Mr Stuart brings a wealth of knowledge to the key role, after spending the past 16 years in the United States gaming industry.

His previous experience includes holding several executive leadership positions with the largest gaming company in the US, Caesars Entertainment Inc.

Mr Stuart took on the role of senior vice president of business development at Caesars digital. Furthermore, he also served as head of Caesars Sports and Online Gaming, and EVP Gaming & Interactive Entertainment.

Mr Stuart’s skill set comprises of gaming strategies, executive operations management, mergers and acquisitions, and online gaming and sports betting divisions.

BetMakers CEO, Todd Buckingham commented:

We have been investing heavily into the US market for the past 3 years while at the same time building up a US-focused management team.

As a next milestone in these efforts, I am excited that Christian is joining the BetMakers leadership team as CEO of North America, given his vast leadership experience in the US gaming industry.

North America is a critical market for our Company with its potential for significant growth on the back of the widespread US sports betting expansion and the potential growth of fixed odds wagering.

BetMakers share price snapshot

The BetMakers share price has failed to take off in the past 12 months, losing more than 10% in value. The company’s shares hit a near 52-week low of 63.5 cents yesterday before staging a small rebound.

Based on today’s price, BetMakers commands a market capitalisation of around $553.15 million, with approximately 857.60 million shares outstanding.

The post What’s going on with the BetMakers (ASX:BET) share price today? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• What made the BetMakers (ASX:BET) share price surge 19% in 2021?
• Why Betmakers, Centuria, Neometals, and Syrah shares are storming higher

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. owns and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/358oLp5

Key points

• The Evolution Mining share price is currently trading 9.97% higher at $4.19
• The gold producer’s stock might be being driven by the gold price’s overnight rally
• At the end of Wednesday’s session, February gold futures was sitting at US$1,843.20

---

The Evolution Mining Ltd (ASX: EVN) share price is on a roll today despite no news having been released by the company.

However, it might be being boosted by soaring gold prices. The price of the golden commodity surged 1.7% overnight, perhaps bolstering confidence in the gold producer.

At the time of writing, the Evolution Mining share price is $4.19, 9.97% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) have slipped 0.23% and 0.19% respectively today.

Let’s take a closer look at what might have boosted the gold miner’s stock into the green on Thursday.

What’s driving the Evolution Mining share price higher?

The Evolution Mining share price is soaring in the wake of gold futures’ strong Wednesday gain.

Overnight, February gold futures closed 1.7% higher at US$1,843.20 an ounce. That’s the highest the price of gold has been in 2 months.

However, it’s dropping once more in Thursday’s trade. It’s currently going for US$1840.40 per ounce – representing a 0.15% dip.

According to commodities-focused media outlet Kitco, the metal’s price was likely driven by rising inflation in both the United Kingdom and Canada

As gold is generally seen as an inflation hedge, international concerns probably had a positive effect on its value.

And, of course, the metal’s price is generally a direct tie to Evolution Mining’s earnings.

As one might expect, Evolution Mining isn’t the only ASX gold producer seemingly benefiting from gold’s gains.

The Northern Star Resources Ltd (ASX: NST) share price is currently up 9% while that of Perseus Mining Limited (ASX: PRU) has gained 7%.

Today’s surge has also placed the Evolution Mining share price back into the year-to-date green.

Right now, it’s 3.2% higher than it was at the start of 2022. Though, it’s still 10% lower than it was this time last year.

The post Why is the Evolution Mining (ASX:EVN) share price surging 10% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip’s Q2 update, Santos and Woodside deliver record revenue
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Leading fund manager says these blue-chip ASX shares are buys right now
• 5 things to watch on the ASX 200 on Tuesday

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.

from The Motley Fool Australia https://ift.tt/33zNwtF

At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is out of form again and trading lower. The benchmark index is currently down 0.2% to 7,319.8 points.

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

Zip delivers strong second quarter growth

The Zip Co Ltd (ASX: Z1P) share price is trading lower today despite smashing records in the second quarter. The buy now pay later provider reported a 53% increase in transaction volume to a record of $2.6 billion and a 58% lift in quarterly revenue to a record of $167.4 million. A key driver of this growth was a 57% increase in customer numbers to 9.9 million.

Netwealth Q2 update

The Netwealth Group Ltd (ASX: NWL) share price is pushing higher today after reporting a $4.7 billion or 9% quarterly increase in funds under administration (FUA) during the second quarter. The $4.7 billion increase comprises quarterly net inflows of $3.6 billion and $1.1 billion in positive market movements. This took Netwealth’s FUA to $56.6 billion at the end of December, which is up 46% year on year.

Santos and Woodside deliver record revenue

Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) had strong fourth quarters. This morning both companies reported record quarterly revenue thanks largely to rising commodity prices. You can read about Santos’ performance here and Woodside’s here. However, it appears as though the market was expecting even better. Both shares are trading largely flat at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Evolution Mining Ltd (ASX: EVN) share price with a 9% gain. Investors have been buying gold miners today, driving the S&P/ASX All Ordinaries Gold index 6% higher. The worst performer has been the Premier Investments Limited (ASX: PMV) share price with a 4% decline on no news.

The post ASX 200 (ASX:XJO) midday update: Zip’s Q2 update, Santos and Woodside deliver record revenue appeared first on The Motley Fool Australia.

More reading

• Has the Zip (ASX:Z1P) share price fallen on Block’s ASX debut?
• Record quarterly sales can’t stop the Woodside (ASX:WPL) share price falling today
• Santos (ASX:STO) share price lower despite record FY 2021 performance
• Zip (ASX:Z1P) share price on watch amid record second quarter performance
• 2 killer ASX shares to buy for a volatile 2022

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

from The Motley Fool Australia https://ift.tt/3tEgDH7

Key points

• ASX BNPL pioneer Afterpay has left the building
• In its place, Block shares have made their ASX debut
• But how has the Zip share price reacted to its promotion to ‘biggest BNPL share’?

---

Today is a watershed moment for ASX buy now, pay later (BNPL) investors. Afterpay Ltd, long the pioneer of BNPL on the ASX as well as the largest BNPL share on offer for investors, has just left the building. So what does this mean for the ASX’s BNPL silver medallist, the Zip Co Ltd (ASX: Z1P) share price?

Yes, Afterpay shares are no longer available for investment. If you want a piece of the BNPL leader, you will instead have to buy the newly created Block Inc (ASX: SQ2) CHESS depository interests (CDIs). A Block share now represents an investment in Afterpay since the two companies are now effectively one. But that also means that you will have to accept that all the other parts of Block’s business come with the deal as well. That includes Block’s uber-popular Cash payments app, as well as its holdings in cryptocurrencies like Bitcoin (CRYPTO: BTC).

So if an ASX investor wanted to remain invested in a pureplay BNPL company, Zip is the next cab off the rank in terms of market capitalisation, now that Afterpay has departed the ASX.

How has the Zip share price reacted to its new BNPL crown?

So how has the Zip share price reacted to its new place at the top of the ASX’s BNPL ladder? Well, not too happily, as it turns out. Zip shares are currently down by a nasty 1.9% today, trading for $3.59 each at the time of writing. That’s actually a new 52-week low for Zip as of this Thursday. So if Zip shareholders were expecting a boost from the company’s promotion to the ASX’s top BNPL dog, unfortunately, that hasn’t turned out to be the case.

That might be especially disappointing for Zip’s investors, who watched the company deliver a second-quarter update this morning that had Zip’s strong growth on display. As my Fool colleague James covered earlier, Zip reported a 53% year-on-year increase in quarterly transaction volume to a record of $2.6 billion. That was along with a 58% increase in quarterly revenues to $167.4 million. Customer numbers also grew by 57% to 9.9 million, helped enormously by strong growth in the US market.

Meanwhile, the ASX’s new Block shares have debuted and are trading at roughly $176.31 per share so far. That’s a lot more expensive than the $66.47 per share price that Afterpay closed at and left the ASX on yesterday. But then again, this is a whole different company that has taken Afterpay’s place.

The post Has the Zip (ASX:Z1P) share price fallen on Block’s ASX debut? appeared first on The Motley Fool Australia.

More reading

• Block (ASX:SQ2) shares are now trading on the ASX
• Zip (ASX:Z1P) share price on watch amid record second quarter performance
• 5 things to watch on the ASX 200 on Thursday
• ASX tech shares sink amid Megaport (ASX: MP1) crash and NASDAQ fall
• Are the worst-performing ASX 200 shares turnaround opportunities?

Motley Fool contributor Sebastian Bowen owns Bitcoin and Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Afterpay Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3Iinnyr

Key points

• Vulcan Energy share price up 2.03% to $10.06
• On track to be listed on the German stock exchange in February 2022
• Increased exposure to International investors

---

The Vulcan Energy Resources Ltd (ASX: VUL) share price is in positive territory today. This follows the company’s latest update on its quest to be listed on the Frankfurt Stock Exchange (FSE).

At the time of writing, the clean lithium developer’s shares are fetching $10.06 apiece, up 2.03%. Despite today’s gains, its shares have fallen 17% in the past month.

Vulcan Energy progresses on dual listing application

In today’s statement, Vulcan Energy provided an update on its application to have its shares listed on the FSE.

The company advised it expects to be formally admitted to the German stock exchange in the first half of February 2022.

Once admitted, Vulcan Energy will be the first ASX-listed company to be listed on the regulated market of the FSE. This not only increases the international profile of the company to European investors but also provides an investment opportunity.

Vulcan Energy noted that it’s reviewing options to ensure the business and trading liquidity has the support it needs following the FSE listing. A potential capital increase could be on the cards, but no definitive decision has been made yet.

Vulcan Energy is aiming to become the world’s first lithium and energy renewables producer with net-zero greenhouse gas emissions. Its Zero Carbon Lithium Project is seeking to produce a lithium-hydroxide chemical product for the European electric vehicle battery market.

Speaking on the news possibly fuelling the Vulcan Energy share price, managing director Dr Francis Wedin commented:

Vulcan is developing the Zero Carbon Lithium Project in Germany, the heart of the fastest growing lithium battery market in the world and also aims to play a crucial role in decarbonising the region’s power and heating requirements through the provision of baseload geothermal energy.

With our projects and more than 90% of our team based in Germany, the dual listing on the FSE is an important step in expanding our European investor base and international exposure, while also fostering public and community acceptance of our Zero Carbon Lithium Project in the Upper Rhine Valley.

Vulcan Energy share price snapshot

Over the last 12 months, the Vulcan Energy share price has gained 4.3%. The company’s shares reached an all-time high of $16.65 in September, before moving on a downward channel.

Based on today’s price, Vulcan commands a market capitalisation of around $1.29 billion with approximately 131.61 million shares on issue.

The post Here’s why the Vulcan Energy (ASX:VUL) share price is powering ahead today appeared first on The Motley Fool Australia.

More reading

• Why Vulcan (ASX:VUL) could be a lithium share with 120% upside
• Here’s why the Vulcan Energy (ASX:VUL) share price is climbing today
• How the Vulcan (ASX:VUL) share price almost quadrupled in 2021
• The 5 best ASX lithium stocks of 2021
• Here’s why the Vulcan (ASX:VUL) share price is charging 6% higher 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.

from The Motley Fool Australia https://ift.tt/33W4Rx2

The S&P/ASX 200 Index (ASX: XJO) has welcomed its latest addition this morning. At 11am AEST, the Block, Inc. (ASX: SQ2) share price started to trade on the Australian share market on a deferred settlement basis.

This follows the completion of its takeover of Afterpay Ltd (ASX: APT) and the removal of the buy now pay later provider’s shares from the ASX boards at the close of play on Wednesday.

The Block share price is currently trading at $176.28. This follows a morning peak of $178.88 and a low of $176.08.

How is the new Block share price decided?

The new SQ2 CDIs on the ASX represent shares of Square Class A common stock at a ratio of 1 for 1.

This means that they are worth the same as the NYSE-listed Block shares, adjusted for current exchange rates.

This isn’t a new phenomenon. ResMed Inc (ASX: RMD) shares have traded as CDIs on the Australian share market for years, though they have a different ratio.

Overnight the Block share price in New York closed at US$128.14. This equates to $177.50 at current exchange rates, which means its ASX listed shares are trading at a slight discount to their US equivalents. But this is largely to be expected given exchange rate risks and Block’s ongoing slide.

Is this a buying opportunity?

The team at BTIG research in the United States appear to see this as a buying opportunity.

It currently has a buy rating and very ambitious US$320 price target on Block’s US shares. This equates to a price target of $442 for its ASX listed shares, which implies more than 135% upside over the next 12 months.

Time will tell if it gets there.

The post Block (ASX:SQ2) shares are now trading on the ASX appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX tech shares sink amid Megaport (ASX: MP1) crash and NASDAQ fall
• Are the worst-performing ASX 200 shares turnaround opportunities?
• Nick Molnar and Anthony Eisen will say goodbye to their Afterpay (ASX:APT) shares tomorrow. What will they be left with?
• 2 ASX shares that now have 80% upside: analysts

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

from The Motley Fool Australia https://ift.tt/3nCGfQI

Key points

• The Coles share price previously performed well during COVID-19 outbreaks and lockdowns
• However, the supermarket’s stock has slumped 9% since the emergence of the Omicron variant
• The dip might be due to the pressures of COVID-19 and the absence of lockdowns

---

The Coles Group Ltd (ASX: COL) share price has been having a rocky few months lately.

That’s despite a resurgence of COVID-19 cases around Australia. While higher case numbers haven’t necessarily boosted supermarket stocks in the past, the Coles share price generally performed well through lockdowns in 2020 and 2021.

So, why are the supermarket’s shares slipping amid the Omicron outbreak? Let’s take a look.

How did Coles perform during previous outbreaks?

The supermarket giant reported a COVID-19-induced lift in sales for both financial year 2020 and financial year 2021.

The lift was spurred by at home consumption, as lockdowns saw more people sitting at dining tables rather than pubs.

Unsurprisingly, as The Motley Fool Australia has previously reported, the Coles share price was generally buoyed through lockdowns over the previous 2 years.

However, current outbreaks seem to be having the opposite effect.

What might be weighing on the Coles share price in the age of Omicron?

The COVID-19 Omicron variant was first noted in South Africa in late November and quickly spread around the globe.

Since the variant’s emergence, the Coles share price has slumped 9%. There are three notable happenings – aside from Omicron itself – that could correlate to the supermarket’s slump.

The first is the Prime Minister’s resolve to stop locking down in the face of the pandemic.

On 20 December, Prime Minister Scott Morrison told a press conference “we’re not going back to lockdowns”. Morrison stated:

[O]ne of the key messages is, yes, we’re going to need to continue to calibrate how we manage this virus and how we live with this virus in the face of Omicron… we’re not going back to shutting down people’s lives.

Other news that might have put pressure on the Coles share price came from its major competitor, Woolworths Group Ltd (ASX: WOW).

It released an update on the first half of financial year 2022 on 14 December. Within the update, Woolworths CEO Brad Banducci described the period as “one of the most challenging halves we have experienced in recent memory”.

Woolworths’ challenges were brought on by COVID-19’s Delta strain, which impacted the supermarket’s stock flow and caused increased operating costs.

Market watchers might be assuming such impacts haven’t waned amid the Omicron outbreak.

Finally, the Coles share price might be being weighed down by now-routine COVID-19 impacts that have been reintroduced, such as product limits.

Additionally, the ABC reported last week that around 30% to 35% of Coles’ distribution centre’s staff and about 10% of its in-store staff were absent due to COVID.

That’s likely putting pressure on its supply chain and store network.

The post Supermarkets were once ‘COVID winners’, so why is the Coles (ASX:COL) share price struggling amid Omicron? appeared first on The Motley Fool Australia.

More reading

• 2 excellent ASX shares for a retirement portfolio
• Analysts name 2 ASX 200 dividend shares to buy today
• What happened to the Coles (ASX:COL) share price in 2021?
• 2 high-yielding ASX 200 dividend shares to boost income
• Own Coles (ASX:COL) shares? The retailer is warning of ‘difficult weeks’ ahead

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

from The Motley Fool Australia https://ift.tt/3FQDba8