Key points

• The Boss Energy share price is currently up 2%, trading at $2.06
• The gains follow the release of encouraging drilling results from the company’s Honeymoon Uranium Project
• According to Boss Energy, the results point to potential increases to the project’s inventory, forecast production, and mine life

---

The Boss Energy Ltd (ASX: BOE) share price is in the green on Wednesday after the company released drilling results from its Honeymoon Uranium Project.

The drilling made up the first phase of the company’s accelerated discovery initiative (ADI).

At the time of writing, the Boss Energy share price is $2.06, 1.98% higher than its previous close.

Let’s take a closer look at the latest news from the up-and-coming uranium producer.

The Boss Energy share price is gaining 2% today

The Boss Energy share price is launching higher this morning on the back of “significant” results from the Honeymoon Project, highlighting the potential to increase the project’s inventory, forecast production, and mine life.

The first phase of the ADI was made up of 37 holes for 4,448 metres across three lightly explored prospects. They included Brooks Dam Extension, Dam North, and Jason’s South.

The results found potential for high-grade mineralisation outside the Honeymoon Restart Area.

Boss Managing Director Duncan Craib commented on the findings, saying:

These results demonstrate the substantial growth potential at Honeymoon, which is already poised to be Australia’s next uranium producer…

We will resume exploration drilling this quarter, thereafter infill drilling, with the aim of growing the forecast production rate and mine life at Honeymoon.

Additionally, the company completed a significant cultural heritage clearance survey over high priority areas in the Eastern Regions tenements in late December.

The completion of the first phase of the ADI and heritage clearance survey will allow Boss Energy to begin planning for the program’s second phase. That’s set to begin next month.

It will also let the company plan for resource infill drilling of the satellite deposit at Jason’s. The company expects that will go ahead in the 2022 field season.

Finally, grant funding for the first phase of the ADI – part of South Australia’s Growth State Agenda – is now banked. The second phase will see the company complete the requirements of its ADI $275,000 exploration grant.

The company’s exploration of the Honeymoon Project has seen its JORC Resource increase around 433% since 2015.

Unfortunately, today’s gain hasn’t been enough to boost the Boss Energy share price into the year-to-date green.

Right now, it is 8% lower than it was at the final close of last year.

The post Boss Energy (ASX:BOE) share price higher on ‘significant’ drilling results appeared first on The Motley Fool Australia.

More reading

• Why is the Boss Energy (ASX:BOE) share price dumping 5% today?
• Here’s why ASX uranium shares could be in for a boost

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/Wukethfoj

Key points

• Telstra has announced two new telecom projects costing up to $1.6 billion
• The projects are set to improve nation-wide connectivity
• The Telstra share price is up this morning amid the news

---

The Telstra Corporation Ltd (ASX: TLS) share price is in the green in early Wednesday trading.

At the time of writing, Telstra shares are swapping hands for $4.00 each, up 1.52% on yesterday’s closing price.

The lift coincides with the company making two new project announcements, promising higher connectivity for Australians. These are expected to cost up to $1.6 billion on top of Telstra’s business-as-usual spending over the next five years.

So what does this mean for Telstra investors?

Let’s dive straight in…

ViaSat satellite program

The Aussie telecom giant and global communications company Viasat are collaborating to provide Australians with higher data and video streaming speeds.

The move is part of an already agreed-upon 16.5-year contract and will support the ViaSat-3 terabit-class global satellite system.

Today, Telstra announced it will bring connectivity to “multiple redundant data centres” by co-locating existing Viasat satellite access node (SAN) equipment across Australia.

It will then build and manage the high-speed links to the sites which will “house the core networking equipment expected to manage the increase in data traffic”.

When completed, it will enable 1Tbps of “total network capacity” in delivering speeds of more than 150Mbps.

According to Telstra CEO Andrew Penn, it will create the “largest-scale satellite solution deployment in the nation’s history”.

New fibre paths

Secondly, Telstra is set to build dual fibre paths that will enable “ultrafast connectivity between capital cities and improved regional connectivity”.

As such, the move will allow “20,000 route kms of new ultra-high capacity, low-latency fibre”, enabling “transmission rates of up to 650Gbps (six times today’s common rate of 100Gbps)”.

This will not only allow for faster network connectivity between Australia’s capitals but also regional areas.

These higher speeds are set to support remote working environments, education, and deliver high-definition entertainment and gaming speeds.

Mining and agriculture will also benefit and the project will allow for higher capacity mobile backhaul.

Work is set to commence in late FY22 with early trial and test deployment already underway.

Comment from CEO

All in all, the projects will cost Telstra an additional $1.4-1.6 billion to its business as usual capital expenditure over the next five years.

However, the company expects its cash flow to remain “ahead of accounting earnings”, with capital expenditure including the investment estimated to be “$250 million per annum lower than adjusted depreciation and amortisation”.

Telstra CEO Andrew Penn said:

Investing in these two truly significant projects will see us continue to have the largest inter-city fibre network in the country, helping to future proof Australia’s digital economy and further improving connectivity in regional Australia.

We’re already seeing connection speeds on the current network surge from 100GB to 400GB and beyond through our investments to date. There is a growing demand for greater fibre capacity, enabling massive bandwidth and ultrafast data rates with lower latency.

The time for delivering the infrastructure to support this is now.

Our strong cash flows and T25 growth ambitions provide us the flexibility to make these strategic infrastructure investments, while maintaining flexibility to return excess cash to shareholders. Together, these investments are expected to deliver incremental long-term accretive growth.

Telstra share price snapshot

Over the last 12 months, the Telstra share price has lifted by more than 24%. It hit its 12-month high of $4.26 on 18 January, a healthy recovery from its low of $3.06 in March 2021.

The company also makes regular dividend payments — an interim in March and a final in September.

The telecom company has a market capitalisation of around $46 billion and a price-to-earnings ratio (P/E) of 25.13.

The post Telstra (ASX:TLS) share price climbs on new $1.6 billion ‘nation-building’ projects appeared first on The Motley Fool Australia.

More reading

• Broker names 2 ASX 200 dividend shares to buy in February
• Here are the 3 most heavily traded ASX 200 shares this Tuesday
• These 3 ASX 200 shares are topping the volume charts on Monday
• Telstra (ASX:TLS) boosts IoT cred with new acquisitions
• Here’s why the Telstra (ASX:TLS) share price could be an opportunity: analysts

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 owns and has recommended Telstra Corporation 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/FvGgEphtT

Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Tuesday night to discuss the RBA leaving rates on hold (but cancelling quantitative easing), a gain for the ASX, and big jumps for travel company shares.

The post Rates unchanged, a gain for the ASX and travel stocks soar. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) Future Industries to buy stake in Sparc Hydrogen
• Will a growing dividend help the AFIC (ASX:AFI) share price?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• Why did the ASX 200 lift on the latest RBA rate decision?

Motley Fool contributor Scott Phillips 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/PSCBT4sv5

The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher with the market on Wednesday.

In morning trade, the shares of Australia’s largest bank are up 0.5% to $94.44.

Is the CBA share price good value?

Unfortunately for shareholders, one leading broker doesn’t see any value in the CBA share price at the current level. In fact, its analysts believe the bank’s shares should be trading notably lower than where they are today.

According to a note out of Goldman Sachs this morning, its analysts have retained their sell rating and $82.57 price target on its shares.

Based on the current CBA share price, this implies potential downside of 12.5% for investors over the next 12 months before dividends.

Why is Goldman bearish on CBA?

Following a review of the banking sector, Goldman Sachs has highlighted three key reasons for its bearish stance on the CBA share price.

These include the margin pressures it is facing from aggressive competition for mortgages, its investments, and the premium the bank’s shares trades on compared to its big four bank peers.

Goldman Sachs explained: “While CBA remains the preeminent retail banking franchise in Australia, its 1Q22 trading update highlighted that even it is not immune from the profitability pressures that are currently particularly evident in mortgages (competition and mix). Furthermore, while CBA’s commitment to investment is the right thing for the franchise in the medium term, we believe it provides it with less flexibility to offset these revenue headwinds.”

“Therefore, with our FY21-24E PPOP CAGR now 1% p.a, versus its peers at c. 5%, we struggle to justify the current 60% P/PPOP premium it trades on versus its peers (25% 15-year average),” the broker concluded.

The post 3 reasons Goldman says the CBA (ASX:CBA) share price is a sell appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ‘We see CBA (ASX:CBA) underperforming’: Why this broker is avoiding Commonwealth Bank in 2022
• How does the Macquarie (ASX:MQG) dividend compare to the big four banks?
• Here’s what higher interest rates could mean for ASX bank shares
• Own CBA (ASX:CBA) shares? Here’s what the big bank reported this week

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/WiKw1UIkq

Key points

• Fortescue Future Industries is buying into a joint venture project to develop green hydrogen
• If successful, this method of making hydrogen wouldn’t need renewable energy or electrolysers
• The Fortescue share price is up around 3% in morning trading

---

The Fortescue Metals Group Limited (ASX: FMG) share price is up this morning. Fortescue Future Industries (FFI) is going to buy a stake in Sparc Hydrogen alongside Sparc Technologies Ltd (ASX: SPN) and the University of Adelaide.

Green hydrogen joint venture

Sparc announced to the ASX today that binding agreements have been executed between Sparc Technologies, Future Fortescue Industries and the University of Adelaide, forming the Sparc Hydrogen Joint Venture.

FFI will subscribe for shares in Sparc Hydrogen under a subscription agreement. Sparc Technologies intends to issue and complete the share issue imminently.

A shareholders agreement has been executed and includes provisions for things like governance and funding provisions.

FFI is going to pay $1.8 million to earn a 20% stake after the stage 1 funding close. It will pay an additional $1.475 million to buy an additional 16% stake. That will leave it with ownership of 36% of the joint venture. Sparc will also end up with 36% after the two stages, whilst the University of Adelaide will own 28%.

What is the green hydrogen project?

As reported by my colleague Brooke Cooper this week, the Sparc Hydrogen joint venture is aiming to create “ultra-green” hydrogen by utilising solar power.

It will seek to further develop a process known as thermo-photocatalysis which will turn water into hydrogen and oxygen.

Adopting this process to produce green hydrogen means that renewable energy from wind farms and/or solar panels and electrolysers are not needed. Due to that, capital and operating expenditure is expected to be significantly lower than electrolysis and other forms of hydrogen production currently in use. Fortescue Future Industries is currently working on projects involving renewable energy and electrolysers.

This thermo-photocatalysis technology can potentially be adopted remotely and for onsite use, therefore reducing the reliance on long distance hydrogen transportation and/or electricity transmission.

Stage one of the project, in the first 2.5 years, will include steps like optimising thermo-photocatalytic reactor conditions, constructing a new reactor for full solar simulation, testing it (including the longevity and durability) and designed a prototype scale reactor for on-sun operation.

Stage two, over the following two years, will involve the installation and commissioning of the prototype reactor. It will also include the pre-commercial pilot scale system design, procurement, installation, commissioning and operation of a thermo-photocatalytic reactor.

Comments from management

The Fortescue Future Industries CEO Julie Shuttleworth said:

There is irrefutable scientific evidence that the planet is warming. Green hydrogen is a practical, implementable solution to decarbonise hard to abate sectors, including heavy industry. The research being undertaken by Sparc Hydrogen is important for FFI’s growing technology portfolio as we develop technologies to lower emissions globally. We are excited to enter into this agreement and to support this critical research into green hydrogen.

Fortescue share price snapshot

The Fortescue share price is up around 3% in early trading today, with the S&P/ASX 200 Index (ASX: XJO) up by 0.8%.

The post Fortescue (ASX:FMG) Future Industries to buy stake in Sparc Hydrogen appeared first on The Motley Fool Australia.

More reading

• Will a growing dividend help the AFIC (ASX:AFI) share price?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• Why did the ASX 200 lift on the latest RBA rate decision?
• This top ASX broker tips Coles (ASX:COL) shares for 20% upside

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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.

from The Motley Fool Australia https://ift.tt/DrFx0y58C

Key points

• The Lynas Rare Earths share price is moving higher on its latest news
• Ministerial approval has been received for the Kalgoorlie rare earths processing facility
• Conditions set out in the report are in line with Lynas’ proposed conditions

---

The Lynas Rare Earths Ltd (ASX: LYC) share price is rising after the company received the go-ahead for its Kalgoorlie rare earth processing facility.

At the time of writing, shares in the rare earths producer are up 3.59% to $9.23. This follows a bitter slump in the company’s shares over the last week despite posting record sales in its latest quarterly update.

Nonetheless, the focus for investors today is the latest news for the Kalgoorlie facility. So, let’s go over the announcement with a fine-tooth comb.

Another step closer to local processing

Investors are taking a liking to the Lynas share price on the ASX this morning as the market considers the latest milestone in the company’s bid to construct a processing facility in Kalgoorlie, Western Australia.

Yesterday afternoon, the rare earths company revealed it had received ministerial approval for the proposed facility. This comes more than six months after the environmental review process began.

According to the release, the Ministerial Statement for the Kalgoorlie processing facility has been issued under the Environmental Protection Act 1986 (WA). This statement is important to investors and the company, as it sets out the conditions for the construction and operation of the facility.

In a pleasing development for shareholders, the conditions passed on were consistent with those Lynas proposed.

Along with a raft of other conditions, some of the limitations set by the EPA report include:

• Processing of rare earth concentrate limited to 162,000 dry tonnes per annum
• Rare earth carbonate production limited to 68,000 dry tonnes per annum
• Proposal life of 25 years

Following on from this approval, Lynas is now working on finalising the secondary approvals. These approvals are necessary to implement the project.

What’s happening with the Lynas share price?

Despite a cracking year in 2021, the Lynas share price has been off to an underwhelming start this year. Shares are down more than 12% since the beginning of the year, marking a considerable underperformance of the S&P/ASX 200 Index (ASX: XJO).

While investors have been selling down Lynas on the ASX, the price of rare earths remains elevated. In fact, neodymium is holding at a high of ~US$202,000 per tonne.

The post Lynas (ASX:LYC) share price jumps on government green light appeared first on The Motley Fool Australia.

More reading

• The Lynas (ASX:LYC) share price is tumbling 5% today. What’s going on?
• The Lynas (ASX:LYC) share price is slipping today despite record sales results
• Why is the Lynas Rare Earths (ASX:LYC) share price up 20% in a month?
• Here’s why leading brokers name the Lynas (ASX:LYC) share price as a buy
• These were the best performing ASX 200 shares last week

Motley Fool contributor Mitchell Lawler owns Lynas Corporation 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.

from The Motley Fool Australia https://ift.tt/GCzytNQ0K

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

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

What happened

Many cryptocurrencies surged sharply higher on Tuesday morning as the government of India proposed a 30% tax on capital gains from buying and selling digital coins. Let’s take a look at three of the largest cryptocurrencies by market cap:

Cryptocurrency	24-hour Move	7-day Move	30-day Move	Market Cap
Bitcoin (CRYPTO: BTC)	2%	4.9%	(17%)	$739 billion
Ethereum (CRYPTO: ETH)	4.8%	13%	(26%)	$333 billion
Cardano (CRYPTO: ADA)	2%	1.9%	(22%)	$48 billion

Data from Coinmarketcap.com, as of 12:20 p.m. ET on Feb. 1, 2022.

So what

India has a rocky history of cryptocurrency regulations. Last November, the Modi government wanted to ban digital coins as a payment method, treating them more like stock-like securities. Cryptocurrency firms were not allowed to market their products and services at all.

At the Davos-based World Economic Forum conference in mid-January, Prime Minister Narendra Modi compared the crypto market to system problems such as inflation, climate change, and disrupted supply chains. He called on world leaders at the gathering to come together and face the shared enemy of digital finance systems.

“Cryptocurrency is an example of the kind of challenges we are facing as a global family with a changing global order,” Modi said. “To fight this, every nation, every global agency needs to have collective and synchronized action.”

That bearish attitude from the second-largest country in the world weighed heavily on the crypto market. Bitcoin prices fell 17% in the next three days after Modi’s speech. Ethereum prices dropped 21% over the same period while Cardano took a 24% haircut. Many investors feared that India might follow in the footsteps of China, which banned cryptocurrency operations outright in September.

So when India’s budget for 2022 included a proposed 30% tax rate on crypto-based capital gains, it’s easy to see that as a modest step forward. If India is willing to participate in the global cryptocurrency economy while pocketing a generous slice of the profits its citizens reap from it, that’s much better news than an outright refusal. Furthermore, India is planning to launch a national digital currency of its own. Modi’s ruling party did not strike that plan from the budgeting agenda, so India’s central bank may launch that coin as early as this year.

Now what

As you can see in the table above, this jump does not mean that the cryptocurrency market is out of the woods. Most tokens are still down by double-digit percentages over the last 30 days and even further away from the sector-wide highs of November.

Still, Modi’s budget is unequivocally good news for cryptocurrency investors and businesses with Indian connections. Bitcoin miners are on a global hunt for facilities with low costs for electric power and data-center floor space where they can run their mining chips without breaking the bank. Cardano’s backers don’t share that interest since their preferred blockchain network relies on a proof-of-stake architecture that doesn’t require massive computing efforts. Ethereum falls between those extremes. This cryptocurrency still depends on a proof-of-work system similar to Bitcoin’s but is in the process of switching over to proof-of-stake later this year.

On an even wider scale, India’s potential ability to provide the right assets for crypto-mining operations at the right price arguably matters less than the fact that it’s a major world economy that can steer the global crypto conversation along a friendlier route than China’s chosen path. That discussion is quite active as governments around the world grapple with these newfangled digital assets.

So a 30% tax on cryptocurrency profits may sound draconian, but it’s actually a small step in a productive direction. 

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

The post Here’s why the leading cryptocurrencies are ticking higher appeared first on The Motley Fool Australia.

More reading

• Bitcoin has crashed 45%: but its fundamentals remain the same
• Why investing in Bitcoin today is a much trickier environment: expert
• ASX shares have had a shaky start to 2022. Here’s what investors are planning: survey
• Bitcoin price sinks again. Here’s where it could find support: expert
• Has the case for Bitcoin as an inflation hedge crumbled?

Anders Bylund owns Bitcoin, Cardano, and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin and Ethereum. The Motley Fool Australia owns and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

from The Motley Fool Australia https://ift.tt/WxR6Ofd8V

Key points

• Some Santos shareholders might be seeing red this week after the company’s CEO was appointed to another ASX 200 board
• Kevin Gallagher’s new spot at the board table of Mineral Resources was announced after Monday’s close
• An investor group has spoken out in disapproval of the appointment. It believes the CEO should be focusing on its recent merger and the energy transition

---

Owners of Santos Ltd (ASX: STO) shares might have been irked this week by news the company’s boss is taking a seat on another S&P/ASX 200 Index (ASX: XJO) board.

That’s led an activist investor group to question if the Santos board is “out of touch”, saying the company’s CEO should be focused on its recent $22 billion merger and the energy transition.

At the time of writing, the Santos share price is $7.18.

Let’s take a closer look at Gallagher’s new role and why some investors are riled up about it.

Could this have Santos shareholders up in arms?

Santos shareholders might be seeing red after the company’s CEO was appointed to the board of iron ore and lithium producer Mineral Resources Limited (ASX: MIN).

Mineral Resources announced Gallagher’s new position on Monday night.

It sparked comments from Australasian Centre for Corporate Responsibility’s director of climate and environment, Dan Gocher. Gocher said that it’s unusual for ASX CEOs to sit on the board of another company:

The appointment of Santos CEO Kevin Gallagher to the board of ASX-listed Minerals Resources will not be received well by shareholders in either company.

Santos shareholders expect Gallagher to be entirely focused on the integration with Oil Search, and the acute risks posed by the energy transition… The Santos board’s approval of this appointment suggests the board is out of touch and has failed to comprehend investors’ expectations of modern CEOs.

Additionally, analysts are reportedly concerned about an overlap between the two companies, potentially creating conflicts for the energy giant’s boss.

The apparent red flag is Mineral Resources’ subsidiary, Energy Resources, which is drilling for gas in the Perth Basin.

Mineral Resources chair, Peter Wade commented on Gallagher’s appointment as a non-executive director, saying:

[Gallagher’s] extensive corporate background and knowledge of the Australian energy market will be of great value to [Mineral Resources].

Gallagher has reiterated his intent to continue his tenure at Santos. That’s despite the new appointment having sparked concerns he might be eyeing an exit.

Santos provided Gallagher with a $6 million incentive pay scheme early last year for his delivery of projects and transitions to 2025.

The Australian Financial Review quoted the CEO as saying:

I remain fully committed to leading Santos successfully out until the end of 2025…

I have very few external commitments outside my Santos role, and I am confident there will be no conflict on my time through taking up this non-executive role

Santos share price snapshot

The Santos share price has had a great start to 2022.

It has gained 13% since the final close of last year. Though, it’s only 6% higher than it was at this point in 2021.

The post Here’s why Santos (ASX:STO) is attracting some investor ire this week appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• ASX lithium shares in focus amid potential supply squeeze
• Why have ASX energy shares become such hot property in 2022?
• 5 things to watch on the ASX 200 on Monday
• These were the worst performing ASX 200 shares last week

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/aZPBSbhj6

The BrainChip Holdings Ltd (ASX: BRN) share price has been a strong performer on Wednesday.

In morning trade, the artificial intelligence chip company’s shares are up 14% to $1.89.

This latest gain means the BrainChip share price is now up ~180% in 2022.

Why is the BrainChip share price pushing higher?

Investors have been bidding the BrainChip share price higher again today after it announced the receipt of another patent in the United States.

According to the release, the US Patents and Trademarks Office (USPTO) has issued a patent for “Method and a System for Creating Dynamic Neural Function Libraries.” The patent protects the basic structure and function of a digital neuron consisting of multiple synapse circuits connected to a soma circuit. This mirrors a biological neuron where a soma cell receives its inputs via multiple synapses.

BrainChip’s portfolio now comprises 8 US and 1 Chinese granted patents. But it may not end there. The company has recently expanded international patent filings with a total of 21 patent applications currently pending in the US, Europe, Canada, Japan, Korea, Australia, Brazil, Mexico and Israel.

Management commentary

BrainChip’s Chief Technology Officer and Founder, Peter van der Made, was pleased with the news.

He said: “Patents are a hallmark of a company, symbolizing the innovation and advantages that differentiate its products and solutions from competitors in the marketplace. By being granted another patent from the USPTO, we are able to signify to our customers and partners that the technology we have developed is at the forefront of revolutionizing AI at the edge in ways that previous attempts have not been able to achieve.”

“Additionally, this recognition further protects us from others developing similar offerings that would otherwise infringe on our work. We will continue to work towards increasing our patent awards globally as we continue to advance the field of neuromorphic artificial intelligence,” he concluded.

The post What’s driving the BrainChip (ASX:BRN) share price 14% higher today? appeared first on The Motley Fool Australia.

More reading

• Own BrainChip (ASX:BRN) shares? Here’s some of the institutional investors which have also bought up big
• Why is the BrainChip (ASX:BRN) share price storming 12% higher?
• What happened to ASX tech shares today?
• Why Accent, BrainChip, Fortescue, and Novonix shares are sinking
• Is BrainChip (ASX:BRN) the real deal?

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/jkFEnMNd2

Key points

• AMP shares are the in spotlight as the company reports full year results on 10 February
• Earnings per share will be carefully watched
• AMP did not pay an interim dividend and may not pay a final dividend

---

AMP Ltd (ASX: AMP) shares are in the spotlight as investors await the diversified financial services company’s 2021 full year financial results. Those are scheduled for release on Thursday 10 February.

Last year, AMP shares took an 11% tumble on the day the company released its 2020 results. That came on the back of a 33% year-on-year decline in underlying net profit after tax (NPAT).

So what will investors be looking for this year?

Earnings results will impact AMP shares

Investors will be keeping a close eye on earnings.

And earnings may well be down from last year, which could put pressure on AMP shares.

Macquarie has reduced its earnings per share (EPS) forecast for 2021 by 4.1% to 8.40 cents.

If AMP does see a fall in EPS, it will run contrary to the wider blue-chip market.

As the Australian Financial Review notes:

Australian blue-chips capped off the 2021 financial year with a 26 per cent surge in earnings per share, which is expected to slow to growth of 13.6 per cent in 2021-22, and 4.5 per cent in 2022-23, according to consensus estimates measured by Morgan Stanley.

Macquarie highlighted some key points from AMP’s strategy update, reported by FNArena.

Among those, AMP announced an additional $115 million of cost-out through 2024.

The company also reported a “10 basis-point fee compression in Australian Wealth Management, a 10% decline in net interest margins from the bank over an indefinite timeframe and 50% loan growth by 2024”.

Demerger ahead

AMP expects its 2 post-demerger businesses – AMP Limited and AMP Capital’s Private Markets business – to emerge independently by mid-year.

Macquarie forecasts it will be effective in June 2022.

According to AMP:

The rationale for the demerger is to enable the two businesses to increase focus on their respective markets and growth opportunities – AMP Limited as a retail wealth manager in Australia and New Zealand, and PrivateMarketsCo as a global manager of infrastructure and real estate investments with a growing focus on international institutional clients.

Macquarie still expects “multiple headwinds” in the leadup to the completion of the demerger.

Dividends unlikely

Income investors awaiting a return to AMP’s historical dividends may be disappointed.

AMP last paid an interim dividend of 10 cents per share on 1 October 2020, fully franked.

The company did not pay an interim dividend in 2021. In explaining its decision, management said:

The board continues to maintain a conservative approach to capital management to support the transformation of the business. In line with this approach, the board has resolved to not declare an interim 2021 dividend. The capital management strategy and payment of dividends will be reviewed following the completion of the demerger in 1H 22.

Analysts at both Citi and Macquarie are not expecting AMP to pay a final dividend.

How have AMP shares been performing?

The AMP share price fell 39% over the past 12 months, compared to a gain of 4% posted by the S&P/ASX 200 Index (ASX: XJO).

So far in 2022, AMP shares are down 8%.

The post Own AMP (ASX:AMP) shares? Here’s what to look for in next week’s earnings update appeared first on The Motley Fool Australia.

More reading

• Own AMP (ASX:AMP) shares? The company is rumoured to be on the hunt for assets
• Why Westpac (ASX:WBC) and these other ASX shares are trading at 52-week lows
• Is value finally emerging in the AMP (ASX:AMP) share price?
• AMP (ASX:AMP) latest to join call for RBA interest rate hike in August 2022
• Own AMP (ASX:AMP) shares? Here’s why this expert downgraded some of its funds

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/pAfQwh1zJ