Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Wednesday night to discuss the monster profit result from Commonwealth Bank of Australia(ASX: CBA), Twiggy Forrest’s Fortescue Metals Group Limited(ASX: FMG) to invest $10 billion in Australia’s largest renewable project and consumer confidence takes a dip.
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Commonwealth Bank of Australia(ASX: CBA) CEO Matt Comyn is keeping an eye on the Reserve Bank of Australia (RBA).
That’s because Australia’s booming housing market is heavily reliant on debt. And this debt has been more easily serviced in recent years than at any other time in history, thanks to record low interest rates.
While mortgage rates charged by the big banks like CBA obviously run a bit higher, the RBA’s official cash rate stands at a rock bottom 0.10%.
So far the central bank has held fire on raising the cash rate. But with inflation creeping higher and leading central banks across the world signalling multiple hikes this year, the RBA is widely expected to begin tightening its policies as well.
Why CBA’s Comyn urges restraint
CBA forecasts that the Aussie economy will continue to perform strongly through 2023, or beyond.
According to Comyn (quoted by the Australian Financial Review):
We have the lowest unemployment rate in 13 years, and are going to touch on the lowest unemployment rate since the early 70s later this year. They are a very strong set of economic conditions showing Australia is performing well, and a good set of conditions for the Commonwealth Bank.
With these strong conditions in mind for the year ahead, CBA expects inflation to run in the range of 3–3.5%, which is above the RBA’s target of 2–3%.
To keep inflation in check, Comyn believes the RBA will raise the cash rate to 0.75% by the end of 2022 and ratchet it up to 1.25% later into 2023.
Noting that higher rates could put some mortgage holders under stress, Comyn is cautioning the RBA to raise rates in a “gradual and modest” way.
Interest rates and house prices
Comyn said if the RBA takes this approach there would only be small falls in Australia’s house prices in 2023. But he cautioned that rapid, higher increases in the cash rate could hit the economy and home prices harder.
The CBA boss said that under the gradual approach (increasing the cash rate to 0.75% in 2022 and 1.25% in 2023) house price growth will decline to 4–7% in 2022 and then prices will fall 5–10% in 2023. Those figures, he said, “shouldn’t give our customers too much cause for concern”.
So what should property owners and investors expect?
According to Comyn (quoted by the AFR):
We think rates will go up quite slowly. We expect the strong economic momentum to carry through to at least the end of 2023 and feel very optimistic about the outlook for the Australian economy over this period…
Even if the cash rate increases by say 100 basis points over the next year or year-and-a-half, the increase in the repayment amount will be modest compared to what we have seen on other cycles.
CBA share price snapshot
CBA shares have slightly outperformed the S&P/ASX 200 Index (ASX: XJO) in 2022.
Year-to-date the CBA share price is down 3% compared to a 4% loss posted by the ASX 200.
Should you invest $1,000 in Commonwealth Bank of Australia right now?
Before you consider Commonwealth Bank of Australia , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank of Australia wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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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Pilbara Minerals Ltd(ASX: PLS) has been an ASX lithium share on a mission over the past 2 years. Most investors have checked out the Pilbara Minerals share price at some point — perhaps due to its eye-catching volatility, an enthusiastic shareholder base, or purely due to its eye-watering gains.
Let’s dig in and find out exactly what it’s been like for ASX investors holding Pilbara Minerals over the past two years.
So, Pilbara is a lithium producer, and one of the largest on the ASX. Its primary project is the Pilgangoora Operation, located in Western Australia.
This mine is owned in full by Pilbara, which describes it as “the world’s largest independent hard-rock lithium operation”. In addition to producing spodumene, a type of lithium ore, it also produces tantalum, another rare metal.
The Pilbara Minerals share price history has been marked by several periods of breathtaking gains. Back in 2017, when there was a surge in interest for ASX lithium shares, the company’s shares rose from 36 cents in early September to $1.11 by early January 2018. That was an increase of more than 200% over just four months.
But between January 2018 and the middle of 2020, Pilbara shares were caught in what could be called a ‘funk’. Over that period, the Pilbara Minerals share price lost close to 80% of its value.
How rich have Pilbara shares made its ASX investors?
It’s been an entirely different tale since then. Pilbara last bottomed out at around 15 cents per share in late March 2020. This was a consequence of the savage bear market that the coronavirus pandemic elicited at the time.
Compare that to the new record high that the Pilbara Minerals share price reached less than a month ago. On 18 January, Pilbara shares hit a new high of $3.89. That represents an eye-popping gain of 2,493%. Even on today’s pricing at $3.40 a share, this still represents a gain of more than 2,000% since early January 2020.
Here’s a look at that overall journey in visual form compared to the S&P/ASX 200 Index (ASX: XJO).
Pilbara Minerals 5-year share price
Let’s put those gains into a monetary form. If an ASX investor ploughed, say, $12,000 into Pilbara shares in March 2020, they would have picked up approximately 80,000 shares. On 18 January 2022, those 80,000 shares would have been worth no less than $311,200. Today, they would be worth $272,000 at the current Pilbara Minerals share price.
So that’s how rich Pilbara has made ASX investors over the past two years. But of course, that’s assuming almost perfect market timing, which is extremely difficult to achieve.
ASX investors who bought Pilbara Minerals within the last couple of months have also enjoyed some very pleasing share price gains, albeit to varying degrees. Since 1 December, the shares have gone up by 30%.
So Pilbara is an ASX share that has proved to be a big winner in recent times. No doubt shareholders will be hoping the party continues.
At the current Pilbara Minerals share price, this ASX 200 lithium producer has a market capitalisation of $10.12 billion.
Should you invest $1,000 in Pilbara Minerals right now?
Before you consider Pilbara Minerals, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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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It’s been a big week of news for Tritium DCFC Ltd(NASDAQ: DCFC), and today is no different.
While most of Australia slept last night, the Brisbane-based designer and manufacturer of electric vehicle fast chargers saw its stock take off, gaining 64.57% in Wednesday’s session.
That’s on top of Tuesday’s 40% gain. As of Wednesday’s close, which occurs on Thursday morning AEDT, the Tritium share price is US$15.70.
However, it’s dropped 8% in after-hours trading.
Let’s take a look at what’s been driving the Tritium share price and the company’s future plans.
What’s electrifying the Tritium share price this week?
The facility will produce 10,000 electric fast chargers each year, with the capacity to produce up to 30,000 annually.
The news came as President Biden announced that US$5 billion of a US$7.5 billion fund package will be dispatched to states this week.
The funds will go towards installing what he says will be “a national network of electric vehicle chargers” across the United States.
What’s next for Tritium?
Tuesday’s news is just the start of what could become a series of exciting updates to boost the Tritium share price.
The company is expecting production at its new Tennessee facility to begin in the September quarter of 2022. Hunter said the facility will help Tritium double or triple its United States production in the United States.
Tritium also said it’s planning to announce the expansion of its European manufacturing capacity in 2023. It will do so either through expanding its existing facilities or establishing new facilities.
Additionally, it announced that preliminary figures show 43% of its 2021 revenue came from the United States. Another 43% came from Europe.
For comparison, for the 12 months ended 30 June 2021, 23% of Tritium’s revenue came from the United States while 68% came from Europe.
Before you consider Tritium, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tritium wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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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ASX tech shares have been punished in the last two months amid a wide sell-off in high-growth stocks.
While investors have thrown support behind the ASX tech sector this week, it remains downbeat for the year. The S&P/ASX All Technology Index(ASX: XTX) is up more than 4% since Friday’s close. However, it has slipped around 8% in the past month and 12% this year.
As a result, the Australian tech sector has collapsed 17% over the past 12 months, making it one of the worst-performing sectors in that time.
With earnings season in full swing, many of the Aussie tech names are on the block as investors begin to peel back the layers on company fundamentals with the market volatility.
Analysts at Macquarie have done just that in a recent note, having scrutinised a few key ASX tech shares in the process. Let’s take a look.
What’s the outlook for ASX tech shares in 2022?
Macquarie has taken note of the recent downturn in the ASX tech basket and is now tilting its posture towards more defensible names.
In fact, the broker is downbeat on the upcoming round of earnings reports from Australian tech stocks. It reckons the sector will display an underwhelming set of results, given the challenges posed by COVID-19 and the Omicron variant.
It notes its favourite pick among the tech stocks, Megaport Ltd(ASX: MP1), has lost around 33% of its value in the past few months after melting off a previous high of $21.88 back in November.
The broker also likes independent data store operator NextDC Limited (ASX: NXT) on a number of fronts and rates it a buy to clients, valuing the company at $16 per share.
On the other hand, Macquarie has reservations on a number of other ASX tech shares. It notes that, as an aggregate, its internal revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) forecasts for the sector are now 5%–7% below consensus estimates.
Specifically, the broker is bearish on Altium Limited(ASX: ALU), Appen Ltd (ASX: APX), and Xero Limited (ASX: XRO), valuing each of these stocks at $27.10, $9.50, and $130 per share respectively.
For each of these names, these price targets represent considerable downside potential, Macquarie says.
One smaller ASX tech share Macquarie is also bearish on is Nearmap Ltd(ASX: NEA), rating it to underperform with a $1.30 per share price target.
Fellow broker Citi holds the opposite side of the coin in Appen’s case, rating the artificial intelligence data services company to outperform in 2022. It values the company at $8.66 per share in a recent note to clients.
Funnily enough, Citi also recommends Macquarie Group Ltd (ASX: MQG) shares are a buy right now and sees the company is worth north of $225 per share.
So far this year to date, both Nearmap and Appen are trading well below the tech sector, whereas Xero and NextDC are tracking largely in line with the index, as shown on the chart above.
Megaport and Altium are the star performers among ASX tech shares in the last 12 months judging from this data.
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When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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 Altium, Appen Ltd, MEGAPORT FPO, Nearmap Ltd., and Xero. The Motley Fool Australia owns and has recommended Appen Ltd, Nearmap Ltd., and Xero. The Motley Fool Australia has recommended MEGAPORT FPO and 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 Argosy Minerals Ltd(ASX: AGY) share price is edging higher on Thursday following a positive update from the company.
At the time of writing, the lithium miner’s shares are up 1.30% to 39 cents.
What did Argosy announce?
In today’s statement, Argosy advised it has received regulatory approval of its Environmental Impact Assessment (EIA) report.
This allows the company to conduct resource expansion exploration and production well drilling works at the Rincon Lithium Project.
As such, focus will be on increasing the current JORC Indicated Mineral Resource estimate by targeting the defined exploration target.
It is estimated that 262,000 tonnes to 479,000 tonnes of lithium carbonate are currently below the ground level.
Together, the JORC Indicated Mineral Resource and Exploration Target estimate a potential 507,000 tonnes to 724,000 tonnes of lithium carbonate.
Argosy stated that production well drilling works will commence later this year in facilitating the preparation of a Mineral Reserve Estimate. This will follow the subsequent completion of the Feasibility Study.
Exploration drilling will focus on confirming the geology, yield and brine grade over the depths of up to 300 metres.
Argosy managing director, Jerko Zuvela commented:
This is another significant milestone for the Rincon Lithium Project and provides further support to realise the substantial resource expansion potential upside that exists below the shallow-depth current Indicated Mineral Resource.
In addition, advancing works toward a maiden reserve estimate and then feasibility study for the planned larger scale operation greatly enhances the long-term viability and status of our project.
Argosy share price summary
Over the past 12 months, Argosy shares have stormed 105% higher, with year to date up 22% so far.
Based on today’s price, Argosy commands a market capitalisation of roughly $502.36 million and has approximately 1.29 billion shares outstanding.
Before you consider Argosy, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Argosy wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
Motley Fool contributor Aaron Teboneras owns Argosy Minerals Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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Shares in National Australia Bank Ltd.(ASX: NAB) are cruising higher today to now trade 4% higher at $29.46 apiece.
Investors are reeling from the release of the banking major’s first quarter results yesterday, where the outcomes was better than many were expecting.
Analysts at the various investment banks are reeling too and have updated clients on their outlook on NAB shares in 2022. Let’s take a closer look.
What are analysts saying on NAB shares?
One theme that’s been plaguing the ASX banking sector in 2022 is the prospect of the large banking majors and their smaller counterparts’ net interest margins (NIMs) contracting heavily this year.
It’s widely accepted that NIMs will contract this year across the board in ASX banks, but the question is more about who will fare the best as this happens.
Analysts at JP Morgan note that NAB is holding its NIM line better than its competitors, noting the bank’s firm result of just a 5 basis points (0.05%) decrease in margin for Q1.
NAB’s decision to focus on lower funding costs is also offsetting the headwinds faced by competition in the mortgage market and the loan-type mix faced by other banks.
JP Morgan explains that NAB’s cash net profit after tax (NPAT) of $1.8 billion shows it running at the right cadence to meet its first half profit guidance of $3.2 billion.
“This is an outstanding revenue trajectory in the context of recent peer results and our forecasts, demonstrating a franchise that is delivering in both the mortgage and business markets” the broker remarked.
Meanwhile, analysts at Citi were also impressed by the bank’s quarterly results, particularly the 12% growth in cash earnings that were 10% ahead of consensus estimates.
According to Citi analysts, NAB’s quarterly results show the key differentiators that investors should consider compared to the other banks – particularly as revenue growth was 8% above the average this quarter.
“While this benefited from a rebound in markets and treasury, underlying growth was still a peer-leading 5%” Citi noted in its update to clients.
“Overall, we expect consensus upgrades likely from the better revenue result, and think the stock will be well supported given profit momentum and NIM pressures at peers” it said.
UBS analysts are also bullish on NAB and value the bank at $30.50 per share. The Swiss investment bank noted the earnings beat could lead to a flurry of analyst upgrades in response.
“In our view, NAB’s Q1 trading update and operating performance is well ahead of consensus at a pre-provision operating level, so this update is likely to drive consensus earnings upgrades” the broker said.
A summary of NAB shares
In the last 12 months, NAB shares are up 17% and have gained more than 1% this year to date. They have struggled in the past month however, sliding less than 1% in the red.
Should you invest $1,000 in National Australia Bank right now?
Before you consider National Australia Bank, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and National Australia Bank wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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 Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to extend its winning run. The benchmark index is currently up 0.3% to 7,290.4 points.
Here’s what is happening on the ASX 200 today:
NAB Q1 update impresses
The National Australia Bank Ltd (ASX: NAB) share price is charging higher today after delivering a better than expected first quarter update. For the three months ended 31 December, NAB delivered a 12% increase in cash earnings to $1.8 billion. This was 13.2% ahead of Bell Potter’s estimate of $1.59 billion and is run-rating 6% ahead of what is implied by Goldman Sachs’ first half forecasts.
AMP shares rise on full year results
The AMP Ltd(ASX: AMP) share price is on the rise today following the release of its full year results. The embattled financial services company reported a 53% increase underlying net profit after tax to $356 million. Though, on a statutory basis, AMP recorded a loss of $252 million for the 12 months. The latter was due to previously announced impairment charges, which were mainly non-cash write-downs.
ASX CEO to retire before CHESS replacement completes
The ASX Ltd (ASX: ASX) share price is tumbling today after releasing its results and announcing the impending retirement of its CEO, Dominic Stevens. After six years in the top job, the CEO will be stepping down later this year. This comes at a particularly tricky time for the stock exchange operator. It is in the process of replacing its ageing CHESS clearing and settlement system with a blockchain-based distributed ledger technology (DLT). Investors may be surprised that Stevens isn’t sticking around to see the project through to completion in 2023.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Thursday has been the Megaport Ltd(ASX: MP1) share price with an 8% gain. This follows a positive response from brokers to its half year results. One of those is Macquarie, which has retained its outperform rating and lifted its price target to $21.00. The worst performer has been the ASX share price with a 3.5% decline following its CEO retirement bombshell.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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 Rio Tinto Limited(ASX: RIO) share price is in the green today, up 2% to $118.87 per share.
As one of Australia’s iron ore giants, with a market cap of $43.5 billion, Rio Tinto’s share price is closely correlated to the price of iron ore.
As you’d expect.
When the industrial metal was trading for some US$220 per tonne back in July last year, Rio Tinto shares were trading north of $132.
As iron ore sank to US$92 per tonne in mid-November, so too did Rio, with the share price dropping to $87.51 on 10 November.
Since then, iron ore has been marching higher. Though it retraced some overnight, it’s currently fetching US$147 per tonne.
As for the Rio Tinto share price, it’s gained 36% over that same period.
And there could be more outperformance ahead.
Commodities about to enter a ‘ripper bullish market’
Jessica Amir, Saxo’s Australian market strategist, is broadly bullish on the outlook for commodities in 2022, saying: “We can expect them to continue to rally strongly”.
She notes that many investors now view commodities as a safe haven “as they are about to enter a ripper bullish market”.
Amir points to the US Federal Reserve’s intentions to lift interest rates multiple times as a big factor boosting commodity prices, such as iron ore, in the year ahead. “Looking at every single US Fed hiking cycle, commodities have outperformed equities since 1972,” she said.
Iron ore prices, now back to their highest levels since August, got another US-driven boost. This one in the form of tariff rollbacks from duties introduced during trade spats under former President Donald Trump.
“The rally [in iron ore] was fuelled by optimism that steel orders could rise, with the US to announce it will end the 25% tariff on Japanese steel imports,” Amir said.
So, what’s all this about the Winter Olympics and the Rio Tinto share price?
I’m glad you asked.
Why the end of the Olympics could boost the Rio Tinto share price
If you’ve been watching the Winter Olympics, hosted by China this year, you may have noticed the often clear blue skies in the background.
That’s partly thanks to extraordinary efforts undertaken by the Chinese Government to reduce the nation’s notorious air pollution in the lead-up to the global event.
As part of that effort, steel manufacturing was scaled back and iron ore shipments fell accordingly.
When the Olympics wraps up, that manufacturing is expected to ramp back up. The increased demand should in turn see another leg-up for the iron ore price, offering some healthy tailwinds to the Rio Tinto share price.
According to Amir:
The iron ore price is up 74% from its November low, and as iron ore shipments are expected to continue to claw off their low after Beijing Olympics wrap up, iron ore heavyweight stocks BHP and RIO remain in focus.
What can Rio Tinto shareholders expect from iron ore prices in the months ahead?
“From a technical perspective the iron ore price is likely to retract then resume its uptrend toward $170, the next resistance level to watch,” Amir said.
Before you consider Rio Tinto, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rio Tinto wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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 Nuix Ltd(ASX: NXL) share price is surging higher today. Its gains follow news that the Australian Securities and Investment Commission (ASIC) has finished part of its investigation into the company’s financial history after finding nothing to follow up on.
At the time of writing, the Nuix share price is $1.66, 9.93% higher than its previous close.
Though, that’s down from its early morning high of $1.65 – an 11.5% gain.
Let’s take a closer look at the news boosting Nuix’s stock higher.
Nuix share price launches on news of ASIC investigation
ASIC has finished flipping through Nuix’s financial statements for the 3 years prior to its landmark Initial Public Offering (IPO), concluding it will take no further action.
The news boosted the embattled Nuix share price after the company released a statement to the ASX this morning.
However, while the watchdog has put the software company’s financial statements for the periods ending 30 June 2018, 30 June 2019, 30 June 2020, and in relation to Nuix’s IPO prospectus to rest, its investigation hasn’t ended.
Nuix said it is continuing to cooperate with ASIC’s investigation into the company’s market disclosures since its much-anticipated float in December 2020.
It followed immense drama that ultimately escalated to an Australian Federal Police probe into the software company’s co-founder. The AFP probe was reportedly looking at a $3,000 options package issued in 2005 which was cashed in for $80 million in 2020.
Additionally, as The Motley Fool Australia reported in September, the company has been the subject of 2 class actions. They claim its prospectus may have contained inflated figures and misleading forecasts.
Macquarie Group Ltd(ASX: MQG) – a major Nuix shareholder and joint manager of its IPO – is said to have conducted a review into the company’s listing last year. Like ASIC’s investigation so far, it also found no shadows in the company’s books.
Nuix share price snapshot
The ongoing drama has taken a major toll on the Nuix share price.
It has fallen 82% over the last 12 months. It’s also currently trading for 68% less than its IPO offer price of $5.31 per share.
Before you consider Nuix, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nuix wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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 recommended Nuix Pty Ltd. 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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