You’ve probably heard of the Fortescue Metals Group Ltd (ASX: FMG) green division. It’s called Fortescue Future Industries (FFI).

FFI was created to take a world leading position in green energy and sustainable technology markets. The division has a sharp focus on sectors where carbon reduction is particularly onerous.

According to Fortescue’s half year report, released on 16 February, FFI is “investing to create a global portfolio of green energy projects to supply 15 million tonnes per year of renewable green hydrogen by 2030″.

What is green hydrogen?

Good question!

In a nutshell, the technology used splits the hydrogen and oxygen that make up the water molecule. Importantly, it uses renewable energy sources for the process.

The hydrogen can then be bound with nitrogen to create ammonia. This can, in turn, be transported to domestic and international markets and used as a clean energy source.

How is Fortescue Future Industries funded?

FFI’s is funded via a 10% slice of Fortescue’s net profit after tax (NPAT).

The S&P/ASX 200 Index (ASX: XJO) mining giant forecasts FFI’s expenditure for the full 2022 financial year will fall in the range of US$400 to US$600 million. That comprises US$100 to US$200 million of capital expenditure and US$300 to US$400 million of operating expenditure.

Are Fortescue’s green hydrogen plans realistic?

The Australian quotes sources who indicate FFI’s initial green energy project target list could cost in the range of $US650 billion to $US1 trillion:

Analysis last year by The Australian of publicly available information suggested the cost of building just 13 of the projects identified by FFI as development candidates would be up to $US148.5 billion. Since then, FFI has added another seven hydropower and 11 geothermal energy projects in PNG alone, plus new projects in Canada and New Zealand.

Fortescue’s founder Andrew Forrest admits the cost is “very high”, though he doesn’t believe it will hit the higher end of the quoted range.

Forrest has dismissed concerns over how the projects can be funded. He is confident that there’s a lot of money waiting to invest in just these types of projects.

Commenting on JPMorgan Chase’s CEO, Forrest said, “I do not want to face Jamie Dimon again, and be told, ‘I don’t have any issue with the capital, Andrew. We’ve got $US3.5 trillion to devote to this – in cash; dry gunpowder. What I don’t have is the projects.’”

The currently soaring energy prices, which have seen crude oil top US$100 per barrel, certainly make the projects more profitable. But Forrest is confident Fortescue’s green hydrogen can be competitive so long as crude trades above US$40 per barrel.

When all is said and done Fortescue Future Industries won’t own the renewable energy projects it’s planning to build across the globe. Instead these will be sold to a range of investors.

According to Forrest, “They can buy the wind farm, or they’ll buy the solar farm or the hydro, whatever, they’ll buy that off you. What they want is these long-term renewable energy investments to give them a yield for 30 to 40 years plus.”

As for the underlying motivations, Forrest said, “The reality is you’ve got to get the big polluting companies, which society relies on, to stop polluting. And then society can rely on them and not feel terrible about it.”

However, as The Australian notes, with its current small scale production levels, it costs Fortescue Future Industries roughly US$5 per kilogram to produce green hydrogen. Those costs need to come down by more than half, to some US$2/kg.

And there’s no ready playbook to fall back on here.

“You’re designing solutions as you go. This is a world which hasn’t existed before. So, you’re creating solutions and you’re inventing as you go,” said Forrest.

So, is he dreamin’?

With Fortescue’s green hydrogen ambitions progressing on a number of fronts in 2022, investors should have a better grasp of that answer by year’s end.

The post Tell him he’s dreamin’: Are the Fortescue (ASX:FMG) green hydrogen plans realistic? appeared first on The Motley Fool Australia.

More reading

• Why Betmakers, Fortescue, Suncorp, and Tyro shares are falling
• 5 ASX 200 shares trading ex-dividend today
• Why is the Fortescue (ASX:FMG) share price falling 5% today?
• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher
• Could Fortescue (ASX:FMG) be about to announce its next major green initiative?

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 Qantas Airways Limited (ASX: QAN) share price is ascending this week amid rising demand for travel.

Qantas shares are currently trading at $5.19, a 2.37% gain for the day. For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.44%.

Let’s take a look at what might be sending the Qantas share price to the skies.

Travel demand surges

Qantas shares have taken off since the start of the week, jumping 2.57% since market close on Friday. And on Sunday, the airline’s CEO Alan Joyce provided hope travel demand is returning.

Speaking to Sky Business Weekend, Joyce predicted domestic flight schedules would recover to pre-COVID-19 levels by the middle of the year. He said:

I don’t think there is anything that is going to derail the domestic recovery and even the international recovery. We are seeing huge demand coming in, particularly leisure. We are seeing corporate, the SME market coming back.

Qantas reported its underlying loss had increased by 26.6% in its H1 FY22 results last week, while revenue surged 31.9% on the previous corresponding half. The Qantas share price fell more than 5% on the day the results were announced.

As my Foolish colleague Bernd reported, COVID-19 travel restrictions continued to impact Qantas operations. However, the airline is confident its recovery program can deliver $900 million in annualised cost benefits by the end of FY22.

Ukraine-Russia crisis

Meanwhile, Qantas has also altered its Darwin to London flight path to avoid flying over the northern part of Russia. This flights will now travel over the middle east and southern Europe, increasing the flight time by one hour.

Joyce told Sky when international borders open in different countries Qantas sees a “boom”, but with Ukraine overlaid on it, “there is a few moving parts”. He said:

We don’t know how long it’s going to last, or how big it could be, or whether its going to be a fizzle. You know, the market I think, is uncertain about how this is going to play out.

The bigger consequence for us is fuel price. Fuel price could go over $100, it’s getting close to that, that has a big impact on airlines in particular, it’s a big input cost. We are very well hedged.

Qantas share price

The Qantas share price has ascended 3.80% in the past 52 weeks, while it is up 3.59% year to date. Qantas shares have also jumped 8.6% over the past month.

For perspective, the benchmark ASX index has returned around 5% over the past year.

The company has a market capitalisation of about $9.7 billion

The post Qantas (ASX:QAN) share price enjoying green start to the week as Joyce says ‘we’re seeing huge demand’ appeared first on The Motley Fool Australia.

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• Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
• Russia invades Ukraine and the ASX tanks. Scott Phillips on Nine’s Late News
• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• ASX wipes out $73 billion as Russia invades Ukraine
• Qantas (ASX:QAN) share price nosedives as losses mount

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 Sezzle Inc (ASX: SZL) share price has returned from its trading halt and dropped into the red.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are down 3% to $1.70.

Why was the Sezzle share price in a trading halt?

The Sezzle share price was placed in a trading halt yesterday after the BNPL provider received a takeover proposal from rival Zip Co Limited (ASX: Z1P).

As we have previously covered here, Sezzle has agreed to an all-scrip deal that will see shareholders receive 0.98 Zip shares for every Sezzle share owned.

Based on the Zip share price at the time of the offer, this implied a price of $2.1658 per Sezzle share, which represented a premium of almost 22% to Sezzle’s last close price and valued the company at $491 million.

Sezzle’s Co-Founder, Executive Chairman, and CEO, Charlie Youakim, spoke very positively about the agreement.

He said: “We are extremely excited about the opportunity to create a leader in the financial services industry by combining with Zip and its management team led by Larry [Diamond] and Pete [Gray]. Paul [Paradis] and I believe it will be a great cultural fit for both our organisations and we’re excited to be part of Zip’s next chapter. I believe the transaction will position us to win in the U.S. and globally.”

So why are its shares falling?

When a company receives a takeover proposal, you’ll normally see its shares shoot higher. But this hasn’t happened with the Sezzle share price today, which may have caught some investors off guard.

As you may recall with the Block Inc (ASX: SQ2) acquisition of Afterpay, when a takeover proposal is an all-scrip affair, the value of the proposal rises and falls with the suitor’s share price.

So, with the Zip share price tumbling notably lower today following the completion of a ~$150 million institutional placement, the deal is already becoming less attractive to shareholders.

At present, the Zip share price is fetching $2.00. Based on its offer of 0.98 shares per Sezzle share, this now values the transaction at $1.96 per share, instead of ~$2.17 per share previously.

And while this is still meaningfully higher than the current Sezzle share price of $1.70, it appears that the market doesn’t have a lot of confidence that Zip’s shares have found a bottom just yet. Furthermore, both sets of shareholders have to approve the proposal, so it’s not quite a done deal at this stage. As a result, some form of discount has to be applied to reflect this risk.

The post Why is the Sezzle (ASX:SZL) share price falling following Zip’s takeover offer? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• Why is the Zip (ASX:Z1P) share price sinking 11% today?
• These were the worst performing ASX 200 shares in February
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms 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. owns and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. 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 share price of cybersecurity provider, Tesserent Ltd (ASX: TNT) has been launching higher over the last week.

Its gains follow the release of the company’s earnings for the first half of financial year 2022 and come amid rising concerns of cyber security threats amid geopolitical uncertainties.  

At the time of writing, the Tesserent share price is 17.7 cents, 1.14% higher than its previous close.

That’s also 22% higher than where it closed last Tuesday – 14.5 cents.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.3%. Though, it has fallen 0.1% over the last 5 sessions.

Let’s take a look at what might be boosting the Tesserent share price lately.

What’s driving the Tesserent share price lately?

It’s been a big week for Tesserent and its share price after the company released its half-year earnings on Friday.

Over the 6 months ended 31 December, the cybersecurity and cloud services provider’s revenue surged 52% to $43.9 million. Of that, 44% was reoccurring revenue.

At the same time, its earnings before interest, tax, depreciation, and amortisation (EBITDA) more than doubled to reach $5.6 million.

The Tesserent share price surged 15% on the back of its half-year results.

Commenting on its earnings, Tesserent chair Geoff Lord said the company is “mindful of the heightened level of cyber security risk that exists for Tesserent clients” due to Russia’s invasion of Ukraine.

“We note that Tesserent has targeted capabilities to address these risks in its Cyber Enhanced Situational Awareness and Response capabilities,” Lord continued.

On that note, the Tesserent share price is gaining alongside some international defence and cybersecurity stocks.

They’re being boosted by expectations that spending in the sectors will rise as concerns of Russian cybersecurity attacks increase, according to reporting by the Guardian.

The Global X Cybersecurity EFT (NASDAQ: BUG) has risen 10.2% over the last week, with its stock currently trading at US$30.86.

Tesserent’s gains also come after the Australian Cyber Security Centre (ASCS) warned organisations to “urgently adopt an enhanced cyber security position”:

There has been a historical pattern of cyber attacks against Ukraine that have had international consequences

Malicious cyber activity could impact Australian organisations through unintended disruption or uncontained malicious cyber activities.

While the ACSC is not aware of any current or specific threats to Australian organisations, adopting an enhanced cyber security posture and increased monitoring for threats will help to reduce the impacts to Australian organisations.

The post Why has the Tesserent (ASX:TNT) share price rocketed 22% in a week? appeared first on The Motley Fool Australia.

More reading

• Tesserent (ASX:TNT) share price rockets 15% as earnings, revenue soar
• Back on the horse! ASX tech shares stage stunning comeback following sell-off

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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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.

Even at the height of the craze supporting Shiba Inu (CRYPTO: SHIB), the most the cryptocurrency was ever worth was $0.00008 per token. As the time of writing, after the collapse of the crypto market, the dog-faced token is now worth $0.000027, or two-thirds less than what it was worth just four months ago.

It would take Shiba Inu a 37,000% hop to hit a penny. From there, it would be another 10,000% more to reach $1.  In other words, only a 3.7 million per cent increase gets you to $1.

Numbers like that might make your head spin, but perhaps buyers of the altcoin should really be asking themselves: “Can Shiba Inu make me wealthy with more reasonable expectations?” 

It looks like the boat already sailed

Early investors in Shiba Inu who held onto the token have already padded their accounts with millions of dollars. Had you invested just $5 on Jan. 1, 2021, at its peak 10 months later, you would have been sitting on a 60 million per cent gain and a value of over $3 million.

Had you held on until the end of the year, you would have seen that value plunge by well more than half, but would still have a nice nest egg of almost $1.3 million. The question for new people considering buying in is whether Shiba Inu has the chops to make even modest gains going forward.

Cryptocurrencies are volatile to be sure and investing in a token in the blind hope that lightning strikes twice is not the way to put your money to work, even if it is just half a sawbuck. 

Getting accepted into the club

What the biggest cryptos — like Bitcoin, Ethereum, and Cardano — have going for them is that they are seen as valid mediums of exchange with a store of value.

Tens of thousands of merchants now accept Bitcoin as payment. As the oldest and most widely distributed crypto, it has become almost mainstream. Yet for all of its ability to be used to buy goods and services, Bitcoin is also seen as an investment in its own right and is held for its potential future value. It is seen as inherently valuable by many despite its day-to-day volatility.

It’s much the same with Ethereum and Cardano, though their acceptance is not nearly as widespread as Bitcoin’s.

Broad acceptance hasn’t been the case with Shiba Inu, though that’s changing. In December, the Flexa payment platform added the token to its system, which is accepted by more than 40,000 merchants, including GameStop, Nordstrom, and Lowe’s.

A few companies made a big deal about attracting Shiba Inu owners to their brand, like Regal Cinema owner Cineworld, which reportedly gave moviegoers a 20% discount on ticket prices if they purchased tickets with the token. AMC Entertainment asked its shareholders in a poll if it should add Shiba Inu and received a resounding yes in response. It plans to add the token (along with Dogecoin) as a purchase option sometime in the first quarter.

A lot of ifs

Meanwhile, there is something called the Shibarium in the works, a layer-2 blockchain project designed to run on top of Ethereum (Shiba Inu is an Ethereum-based token) that seeks to overcome two other problems Shiba Inu has faced: slow processing times and very high transaction fees.

If successful, that could lead to the development of non-fungible token (NFT) gaming and an entry into the metaverse. That could fuel even greater adoption for Shiba Inu, as could a listing on Robinhood Markets. But there are no guarantees any of this will come to fruition.

Moreover, it faces pressure not from more tokens being added to its already expansive base of 550 trillion tokens, but from new blockchain-based projects coming online. Without much to differentiate Shiba Inu, new alternatives that provide faster processing times or lower fees will assume a competitive advantage.

There is only the remotest of chances Shiba Inu will ever hit a penny in value, let alone a dollar. Reaching $1 would mean the cryptocurrency would be worth $550 trillion, or more than five times the gross domestic product (GDP) of all the world’s economies combined.  

Shiba Inu would need the perfect alignment of the stars for it to attain a return to its former heights, let alone any real gain in value, which is why should steer clear of this cryptocurrency. 

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

The post Can Shiba Inu reach $1? appeared first on The Motley Fool Australia.

More reading

• The market is down, but Shiba Inu has surged 11%. Here’s why
• Why Shiba Inu was down 10% today
• 2 reasons Shiba Inu and Dogecoin are soaring this weekend
• Chasing its tail? Shiba Inu price tumbles today following 38% leap
• It’s happening again — Shiba Inu goes parabolic, shooting 38% higher

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. 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.

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The Sandfire Resources Ltd (ASX: SFR) share price is crashing as some brokers are warning investors to sell the shares following its profit results and update yesterday.

The copper miner plunged 10.8% to $5.98 this morning. This makes it the worst performer on the S&P/ASX 200 Index (ASX: XJO) at the time of writing.

Poor results and MATSA update sinks the Sandfire share price

Sandfire reported a first half net profit of US$54 million which was below consensus expectations of US$70 million.

But that was arguably not the worse piece of news. The update on the MATSA project added insult to injury.

“Focus was all on updated FY22 group guidance including the recently acquired MATSA underground copper/zinc mine in Spain,” said Goldman Sachs.

“At MATSA; both production and cost guidance [were] c. 5-10% worse than the guidance provided at the time of acquisition.”

Why Goldman is telling investors to sell

The miss is due to the lowering of cut-off, and therefore head grades. This means the costs to operate the mine is higher than expected.

Shareholders will have to wait until around the middle of this year to get an update on resources of reserves for MATSA.

Goldman Sachs reiterated its sell recommendation on the Sandfire share price. Its 12-month price target on the miner is $5.75 a share.

Dividend miss adds to gloom

Another with a dim view of Sandfire is JPMorgan. The broker noted that the miner’s results were not only below its forecasts, but the interim dividend of 3 cents per share was 2 cents shy of its expectations.

While the updated MATSA production guidance of 5 million tonnes to June 2022 was similar to what the broker had pencilled in, the cash cost of US94 cents a pound was significantly ahead of JPMorgan’s forecast.

JPMorgan retained its underweight recommendation on the Sandfire share price with a price target of $5 a share.

Sandfire share price still has its supporters

However, not all brokers have abandoned the miner. Macquarie Group Ltd (ASX: MQG) stuck to its outperform call on Sandfire despite the disappointing result, although it lowered its price target by 5% to $9 a share.

Meanwhile, Shaw and Partners are also urging supporters to keep the faith. The broker said the results were ok and continued to keep its buy recommendation on the shares.

Its 12-month price target on the Sandfire share price is $7.80 a share.

The post Why is the Sandfire (ASX:SFR) share price fizzling 11% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• ‘Impressive and consistent’: Sandfire Resources (ASX:SFR) share price gains on half-year earnings
• 2 ASX mining shares cracking 52-week highs today
• Sandfire (ASX:SFR) share price firms after completion of $2.6b acquisition

Motley Fool contributor Brendon Lau owns Macquarie Group Limited and Sandfire Resources NL. 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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Yancoal Australia Ltd (ASX: YAL) share price is on the move today after the company released its financial results for the full year ended 31 December 2021 after the closing bell yesterday.

At the time of writing, Yancoal shares are surging 14.94% higher at $4.00 apiece.

Yancoal share price lunges forward on record earnings growth

The Yancoal share price is rocketing after the company announced its earnings results. Key takeouts include:

• Record revenue from continuing operations of $5.40 billion, up 56% from $3.47 billion same time last year
• Operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $2.53 billion, up from $748 million in FY20 – due mainly to the increased revenue
• Operating profit before tax of $1.41 billion, up from a $218 million loss in FY20
• Early debt repayment of US$500 million in October, plus a significant reduction in the gearing to 24%
• Net profit after tax (NPAT) of $791 million, well above the $1.04 billion loss in FY20
• Cash of $1.5 billion at the end of the year
• Reinstated dividend due to strong cash earnings and lower gearing.

What happened this period for Yancoal?

Yancoal posted a solid set of financial and operating results for the year, underscored by a higher realised coal price and increased ratio of metallurgical coal sales.

As such, the company secured a record revenue of more than $5.4 billion for the period, staging an impressive performance for earnings across the board.

This led to a sizeable gain in EBITDA from almost $750 million to $2.5 billion. That’s a staggering gain of approximately $1.75 billion in operating income for the year.

Additionally, Yancoal enjoyed a substantial reversal in the loss of $1 billion it sustained in FY20 to recognise NPAT of $791 million.

Not only that, but capital expenditure came in below guidance at $269 million “after some FY21 planned spending was held over into FY22”.

However, as sales jumped, the cost of these revenues also jumped for the company in 2021. For instance, Yancoal’s cash operating costs were $67 per production tonne versus $59 a tonne in 2020.

“Higher diesel prices, demurrage costs, and reduced output due to issues at Moolarben, wet weather, and COVID-19 were factors in the cost increase,” the company said.

Nevertheless, the mammoth jump in earnings allowed the board to resume dividend payments. It allocated $930 million in surplus cash to a 50 cents per share final dividend and a 20.4 cents per share special dividend (both unfranked).

Management commentary

Speaking on the announcement pushing up the Yancoal share price today, CEO David Moult said:

The health and wellbeing of all our employees are of vital importance to Yancoal, and management and operational staff worked closely together during 2021 on the continued implementation of an effective COVID-19 pandemic response plan. The effort of all involved kept the production impacts of COVID-19 to a minimum, but there were some unavoidable production losses due to logistics constraints and staff absences because of mandated isolation requirements. We remain vigilant to the continued risks posed by the pandemic.

In relation to broader health and safety issues, Yancoal’s 12-month Total Recordable Injury Frequency Rate remained below the comparable industry average throughout 2021.

What’s next for Yancoal?

The company has set a number of guidance targets for 2022. Specifically, it is targeting saleable coal production of 35 to 38 million tonnes (attributable) and cash operating costs (excluding government royalties) of $71 to $76 per tonne. It is expecting capital expenditure of $600 to 650 million for the year.

“The bottom end of the production guidance and top end of the cost guidance is where existing challenges persist,” the company noted.

“Capital expenditure increases in 2022, after two years of modest expenditure, as the Group replaces some mining fleet and to keep our large-scale, low-cost mines performing efficiently, together with the completion of the Moolarben coal wash plant upgrade.”

Yancoal share price snapshot

In the last 12 months, the Yancoal share price has surged by 67%. It is also 54% higher this year to date.

During the past month, shares have spiked by 42%. As a result, Yancoal is clearly leading the broad index’s return in 2022.

The post Yancoal (ASX:YAL) share price surges 15% as dividends merrily return appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• Here are the top 10 ASX shares today
• Here are the top 10 ASX shares today

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

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The Strike Energy Ltd (ASX: STX) share price is rangebound in early Tuesday trading and is now flat at 26.5 cents.

The investing piranhas aren’t biting today despite a company announcement regarding Strike’s South Erregulla target.

As seen in the chart below, Strike Energy has substantially trailed its global peers in the Nifty Commodities Index – a proxy for the performance of the commodities segment as a whole.

Let’s take a closer look at the company’s market update today.

What did Strike Energy announce?

Strike advised it has successfully cored an approximate 45-metre interval from a previously drilled 4,859 metres at the Western Australia site. It has also retrieved the core to the surface.

Today’s announcement follows an update made in a previous release on February 25.

At that time, Strike announced it had successfully completed drilling through two coal formations at South Erregulla – and of its aim to complete another 45 metres target depth.

The company’s South Erregulla resource is located in the “100% Strike-owned EP503 which adjoins EP469 where Strike as operator has made a large, high quality conventional gas discovery at West Erregulla”.

Apparently, Strike is aiming to secure the gas requirements for its Project Haber, “Strike’s proposed Mid-West based 1.4mtpa urea fertiliser manufacturing facility”.

Today’s announcement confirms Strike could be on the way to meeting its objectives if assay results come back with positive data on resource estimates.

Company comment

According to Strike:

Steady coring conditions with gas shows were observed during the coring operations. The core has now been sent to the laboratory for several rounds of testing.

As a result, Strike has started preparations to reach the final depth in the Holmwood Shale by running in hole with the drilling assembly and logging while drilling, according to the announcement.

Looking forward, Strike says it will drill to final depth in the Holmwood Shale, condition the hole, then “[pull] out the drill string in order to commence wireline logging and evaluation”.

Investors haven’t bought in today. However, most of the information was released back on February 25 – when shares climbed marginally. It seems the market may have already priced in the ‘good news’ beforehand.

Strike Energy share price snapshot

In the last 12 months, the Strike Energy share price lost almost 16%. However, it has surged 29% year to date.

During the past month of trading, the company’s shares have charged another 23% higher. This puts Strike well ahead of the broad index’s performance so far this year.

The post Here’s why the Strike Energy (ASX:STX) share price has struck out this morning appeared first on The Motley Fool Australia.

More reading

• Here’s why the Strike Energy (ASX:STX) share price is edging lower today
• Here’s why the Strike Energy (ASX:STX) share price is 6% higher today
• Here’s why the Strike Energy (ASX:STX) share price is surging 11% 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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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on form again and charging higher. The benchmark index is currently up 1.3% to 7,142 points.

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

Zip shares tumble after raising ~$150m

The Zip Co Ltd (ASX: Z1P) share price sank to a new 52-week low on Tuesday morning after returning from a trading halt. This followed the completion of a ~$150 million institutional placement which was undertaken at a 14% discount of $1.90 per new share. Separate news that the company has signed an agreement to acquire Sezzle Inc (ASX: SZL) for $491 million wasn’t enough to support its shares.

Crown hit by AUSTRAC proceedings

The Crown Resorts Ltd (ASX: CWN) share price is falling today after the casino and resort operator revealed that AUSTRAC has commenced civil penalty proceedings against its Crown Melbourne and Crown Perth businesses. The regulator is alleging contraventions of obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

IGO shares jump on Glencore update

The IGO Ltd (ASX: IGO) share price is storming higher today. This follows the release of an update on its talks with Glencore regarding the potential acquisition of the CSA Copper Mine. According to the release, talks have now concluded and no agreement has been reached. It appears as though the market was not keen on the deal.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Yancoal Australia Ltd (ASX: YAL) share price with a 15% gain. This follows the release of the coal miner’s full year results after the market close on Monday. The worst performer has been the Sandfire Resources Ltd (ASX: SFR) share price with an 11% decline. This morning Ord Minnett reaffirmed its sell rating with a reduced price target of $5.60.

The post ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown appeared first on The Motley Fool Australia.

More reading

• Why is the IGO (ASX:IGO) share price rocketing 8% today?
• Why is the Zip (ASX:Z1P) share price sinking 11% today?
• Crown (ASX:CWN) share price falls on AUSTRAC court proceedings news
• These were the best performing ASX 200 shares in February
• These were the worst performing ASX 200 shares in February

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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The S&P/ASX 200 Index (ASX: XJO) is enjoying a very pleasant day of gains so far this Tuesday. At the time of writing, the ASX 200 is up a healthy 1.24% at 7,137 points. But the Endeavour Group Ltd (ASX: EDV) share price doesn’t seem to have gotten an invite to the party. That’s despite its primary business of running pubs and bottle shop chains like BWS and Dan Murphy’s.

Even though the ASX 200 is enjoying some sunshine, Endeavour shares are presently down by a seemingly nasty 1.82% at $7.03 a share. So what gives?

Well, there’s been no major news or announcements out of Endeavour today. But there is still a fairly straightforward explanation for this share price fall Endeavour which investors are enduring today. Today is the day that Endeavour shares trade ex-dividend for the company’s upcoming dividend payment. 

Back on 21 February, Endeavour reported its half-year earnings for the first half of the 2022 financial year. As we reported at the time, Endeavour delivered a fairly flat set of revenue numbers. However, the company was able to grow net profit after tax (NPAT) by 15.6% to $311 million. These numbers saw the Endeavour share price jump at the time. 

Endeavour share price pops its interim dividend cork

But Endeavour’s earnings report also naturally included an interim dividend announcement – it’s first since it was demerged out of Woolworths Group Ltd (ASX: WOW) last year. Endeavour will be forking out a fully franked interim dividend of 12.5 cents per share. That is a large increase over last year’s final (and paradoxically, first ever) dividend of 7 cents per share.

The company’s shares trade ex-dividend for this payment today, which means that any new investors from today will not receive said payment. That’s probably why the Endeavour share price is falling today. But investors will have to wait until 28 March to receive the cash and franking credits. 

Now that Endeavour has paid out two dividends in the past 12 months, we can now give its shares a full and accurate dividend yield. At the current share price of $7.03, and taking into account an annual payment of 19.5 cents per share, Endeavour has a dividend yield of 2.77%. 

Since its first day of trading last June, the Endeavour share price has given investors a return of approximately 15.25%. At the current Endeavour share price, the company has a market capitalisation of $12.57 billion. 

The post Party pooper? Why the Endeavour (ASX:EDV) share price is slumping today appeared first on The Motley Fool Australia.

More reading

• Here’s what you need to know about the Woolworths (ASX:WOW) dividend
• ASX 200 shares stage comeback amid Russia optimism
• Why A2 Milk, AGL, Endeavour, and TPG shares are charging higher
• Crack a bottle! Endeavour (ASX:EDV) share price jumps 11% on profit lift
• The week ahead: Earnings, wages and business conditions. Scott Phillips on Nine’s Late News

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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