One major cryptocurrency has seen its value rise almost 130 times this year so far, but it’s set for another 25% rise before 2021 is done, according to an expert.

One Solana (CRYPTO: SOL) was trading for $270.20 at lunchtime Monday — a far cry from 1 January when it was worth a mere $2.09.

That means it has multiplied more than 129 times in just over 10 months.

Imagine you had $1,000 of Solana currency when the new year fireworks went off. Now you’d be sitting on $129,300.

But amazingly, DeVere Group chief executive Nigel Green reckons there is even more growth to come in the next couple of months.

“Solana is certainly a rising star of crypto. With its price skyrocketing more than 100 times since the beginning of the year, its potential is becoming impossible to ignore,” he said.

“I believe that its bull market run will continue for the rest of this quarter and that it will hit new all-time highs of $250 by the end of 2021.”

Decentralised finance apps need Solana

Unlike Bitcoin (CRYPTO: BTC), which is a pure store of value, Solana is the token used in a blockchain system that facilitates decentralised finance (DeFi) software.

“The DeFi sector is about to explode due to the inherent real-world value it can offer almost every sector,” said Green.

“Investors are increasingly understanding the network’s value not only as a platform for developers but as a worldwide financial utility.”

According to Solana documentation, its big advantage over Bitcoin and Ethereum (CRYPTO: ETH) is that it uses a system clock to make network synchronisation “very simple”.

Green earlier this year correctly predicted Bitcoin would reach all-time highs in 2021 and that Cardano (CRYPTO: ADA) would surpass US$3.

Cardano is now languishing at US$2.13, making his other forecast of it hitting US$4 by the end of the year more unlikely.

“Solana has smashed past some key resistance levels in recent weeks, indicating that investors aren’t worried about squeezes to the downside,” he said.

“It’s gaining momentum and, as a result, a growing number of active holders. There’s no reason to expect this to slow considerably before the end of the year.”

The post This cryptocurrency is a 130-bagger just this year appeared first on The Motley Fool Australia.

More reading

• Here’s what’s next for the Bitcoin price: expert panel
• Why cryptocurrencies are moving wildly today
• Could the Ethereum price track Bitcoin to new record highs?
• Why the Bitcoin (CRYPTO:BTC) price is rocketing to new, all-time highs
• Newcrest (ASX:NCM) CEO reveals the company’s gold, copper and Bitcoin mining plans

Motley Fool contributor Tony Yoo owns shares of Bitcoin, Cardano, and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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.

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

The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is frozen on Monday. This follows the defence contractor submitting a request to the ASX to halt the trading of its securities ahead of several announcements.

At the time of writing, the company’s shares are stuck at $3.61 apiece. This positions the Electro Optic (EOS) share price ~48% below its 52-week high of $6.92.

Let’s take a closer look at what is expected to be announced.

EOS shares dealt earnings downgrade

Today is an eventful day for the trading of EOS shares, with not a single share being exchanged. Though, the lack of activity is not due to disinterest. Instead, the defence contractor requested its shares be placed in a trading halt prior to the market opening this morning.

According to the release, the trading halt has been entered prior to the announcement of a few various matters. This includes a downgrade to the company’s earnings guidance, an update pertaining to a significant contract payment, and the status of fundraising efforts for its subsidiary SpaceLink Corporation.

Firstly, the earnings downgrade comes at a time when supply chain disruptions have wreaked havoc on EOS’ typical delivery. As a result, the company downgraded its revenue guidance in 2020 from 70% year-on-year growth to only 25%. It appears this trend is continuing now on Electro Optic’s bottom line of the profit and loss statement.

Secondly, shareholders can expect EOS shares to remain halted until either the company releases these announcements or the commencement of trading on 27 October 2021.

Increasing pressure

Unfortunately, this not-so-positive news continues the downward trend playing out for EOS. As a result, sentiment towards the Aussie defence company is largely negative. In fact, it is commonly featured in the 10 most shorted ASX shares — with it placing fifth last week at 8.7% short interest.

EOS shares are down 37.8% over the last 12 months.

The post Here’s why Electro Optic Systems (ASX:EOS) shares are frozen today appeared first on The Motley Fool Australia.

More reading

• Electro Optic Systems (ASX:EOS) share price launches on satellite manufacturing contract
• These are the 10 most shorted ASX shares
• Electro Optic Systems (ASX:EOS) share price rallies 10% on “significant milestone”
• Why A2 Milk, EOS, GUD, & PointsBet shares are charging higher
• These are the 10 most shorted ASX shares

Motley Fool contributor Mitchell Lawler owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings 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/3pADNMq

The Fortescue Metals Group Ltd (ASX: FMG) share price has managed a small gain on Monday amid higher iron ore prices.

At the time of writing, the Fortescue share price is trading 1.29% higher to $14.495.

Iron ore prices edge higher

Iron ore spot prices ticked US$2.59, or 2.2%, higher to US$119.52 a tonne overnight on Friday, according to Fastmarkets.

Similarly, iron ore futures opened firmer on China’s Dalian Commodity Exchange Monday, with contracts for January 2022 delivery currently 4.06% higher to around 705 yuan (US$105) a tonne.

After falling more than 50% from May all-time highs of US$230 a tonne, iron ore prices have stabilised around the US$120 a tonne level.

This has also seen the Fortescue share price find its footing in recent weeks, finding plenty of buying support when it hits the low or sub $14.00 level.

Commodity drivers fading

In a note to clients, Fitch said that the supply-side and global macro factors driving a synchronised commodity price boom are now beginning to wane.

“China’s property market is cooling, the pace of global industrial production growth is slowing, the US dollar has started to strengthen and global US dollar credit flows are weakening,” said Robert Sierra, Director in Fitch Ratings’ Economics Team.

Fitch pointed out that China’s slowing property market has already slashed iron ore prices against a backdrop of rapidly decelerating global industrial production.

Fitch added that monetary conditions are likely to tighten as the US Federal Reserve is on the cusp of withdrawing some of its pandemic support, tapering its US$120 billion in monthly purchases of Treasury bonds and mortgage-backed securities.

Fortescue share price snapshot

The Fortescue share price is down 38% year-to-date to a 16-month low.

It’s been largely range-bound since late September, finding plenty of buying support around $14 but its rallies towards $15 have been short-lived.

The post Fortescue (ASX:FMG) share price higher but commodity boom at risk: economist appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• Why the Fortescue (ASX:FMG) share price is falling again on Friday
• These are the 5 highest yielding dividend stocks in the ASX 200
• Why the Fortescue (ASX:FMG) share price could be dirt cheap

Motley Fool contributor Kerry Sun 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/3jwbuLc

The Insurance Australia Group Ltd (ASX: IAG) share price is trading lower today, currently 1.17% in the red at $5.05.

IAG shareholders have endured a turbulent ride lately with the insurance giant’s share price trading in an 11.5% spread of $4.80 to $5.35 this past month.

What’s been fuelling the IAG share price lately?

The IAG share price spiked last week after the company released a trading update at its annual general meeting (AGM).

In its report, IAG explained it had a nice thrust to commence FY22 and is well on track to reach its previously outlined guidance.

This includes reported insurance margin forecasts of 13.5% to 15.5%, helped by “lower motor vehicle claims frequency, driven by the lockdowns in Australia and New Zealand”.

Prior to this, IAG shares were punished from 11 October on the back of what seems to be a Federal Court ruling in favour of the company in a “business interruption test case” that was related to COVID-19 lockdown business claims.

The second test case – held after a court previously ruled in favour of the claimants – actually reversed the overall decision and found in favour of the insurers in 8 out of 9 matters.

Interestingly, the IAG share price cratered 9% in the week following the court’s decision. Perhaps investors were seeking a more equitable outcome for claimants who pay IAG insurance premiums for cover in certain events.

Can IAG turn it around?

Analysts at leading broker Morgans tend to think so. The broker reckons that, although it was a challenging FY21 for IAG, it is better positioned to capture profits in FY22.

It labelled the insurance giant’s trading update as “broadly positive”, especially as all guidance figures were confirmed.

Insurance price increases, the firm’s strategy to lower costs and improve underwriting are key catalysts to drive this movement, Morgans says.

Despite a lacklustre performance on IAG’s price chart, where it remains bottom-heavy and hovering around all-time lows, the brokers reckon there is still value to be sourced from IAG.

Consequently, Morgans reiterated its add rating, however, trimmed its price target by 0.2% to $5.64.

At the current market price, this implies an upside potential of just over 10%.

IAG shares have struggled this year to date, marred by controversy and regulatory headwinds. It has only climbed 8% since January 1 and under 5% in the last 12 months.

This is well behind the S&P/ASX 200 Index (ASX: XJO)’s gain of around 20% in the last year.

The post Here’s why Morgans tips another 10% upside for the IAG (ASX:IAG) share price appeared first on The Motley Fool Australia.

More reading

• IAG (ASX:IAG) share price rises following solid start to FY22
• What is the current IAG (ASX:IAG) dividend payout ratio?
• The IAG (ASX:IAG) share price has slumped 8% in a week. Here’s why
• These were the worst performing ASX 200 shares last week
• Why Harvey Norman, IAG, Pendal, and Treasury Wine are dropping

The author Zach Bristow has no positions 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 shares of and has recommended Insurance Australia Group 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/3GkkgG4

The Alicanto Minerals Ltd (ASX: AQI) share price is going ballistic today, up 20% trading at 15.5 cents at time of writing after earlier posting gains of more than 35%.

We take a look at the latest drill results from the ASX resource explorer that look to be stoking investor interest.

What drill results were announced?

The Alicanto share price is soaring after the company reported “spectacular historic drilling results” at its Sala silver-lead-zinc project, located in Sweden. Alicanto noted the presence of exceptionally high grades of silver, zinc and lead.

The results come from drilling conducted in the 1970s by the previous project site owner, Boliden. The Swedish Geological Society only just released the assays publicly for the first time. The assays are derived from a total of 12,225 metres of shallow historical drilling.

Alicanto noted that the shallow mineralisation “highlights the significant potential of the Sala Project”.

Some top historical intercepts include:

• 8m at 5.3% Zn and 40 g/t Ag, including 2.1m at 36.4% Zn
• 8m at 450 g/t Ag, 12.2% Zn, 7.2% Pb
• 7m at 42 g/t Ag, 11.6% Zn, 0.3% Pb

What did management say?

Commenting on the historic assays, Alicanto’s managing director Peter George said:

The grades and widths of the mineralisation are spectacular and many of the intersections sit within the area we are currently targeting for our maiden JORC-compliant Resource. Not only will this data save us 5,000 metres of drilling, time and money, but the strength of the results will also help underpin our resource estimate.

When combined with the 200 million ounces [of] silver produced historically and the exceptional results we have been generating from our own drilling, it is clear that Sala is a world-class mineralised system with immense exploration upside.

The company anticipates its maiden JORC-compliant resource estimate at Sala in the first quarter of 2022.

Alicanto share price snapshot

The Alicanto share price has gained 45% so far in 2021. That handily beats the 11% year-to-date gain posted by the All Ordinaries Index (ASX: XAO).

Over the past month Alicanto Minerals’ shares have gained 33%.

The post Here’s why the Alicanto (ASX:AQI) share price is rocketing 20% today appeared first on The Motley Fool Australia.

More reading

• Here’s why Morgans tips another 10% upside for the IAG (ASX:IAG) share price
• The Bank of Queensland (ASX:BOQ) share price will trade ex-dividend on Thursday. Here’s what you need to know
• The Xero (ASX:XRO) share price is holding up ASX tech shares today
• Why Beach, Mineral Resources, Origin, and Telstra are storming higher
• Why is the AGL (ASX:AGL) share price having such a good start to the week?

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/30YSMFK

The Bank of Queensland Limited (ASX: BOQ) share price is climbing during afternoon trade, clawing back some of last week’s losses. This comes despite the regional bank not releasing any price-sensitive announcements to the ASX today.

At the time of writing, Bank of Queensland shares are up 0.88% to $9.18 apiece.

Bank of Queensland shares set to go ex-dividend

While the company has been quiet on the news front, investors are buying up Bank of Queensland shares.

A catalyst for the rising Bank of Queensland share price could be that the S&P/ASX 200 Index (ASX: XJO) is steaming ahead. As such, the benchmark index is up 0.32% to 7,439.6 points.

Another possible reason for the company’s shares pushing higher is the upcoming ex-dividend date.

Investors need to buy Bank of Queensland shares before the ex-dividend date on Thursday to be paid the final dividend.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

What does this mean for shareholders?

For those who are eligible for the Bank of Queensland final dividend, shareholders will receive a payment of 22 cents per share on 18 November. The dividend is also fully franked which means shareholders can expect to receive tax credits from this.

Investors who elect for the dividend reinvestment plan (DRP) will see a discount applied to the volume-weighted average price. This is likely to be for a number of trading days subsequent to, and inclusive of, the ex-dividend date period.

Details of the price the DRP will be offered are yet to be released on the company’s website. It’s expected that the announcement could come in the next few days as the record date is 29 October.

The last election date for shareholders to opt-in to the DRP is 1 November.

Bank of Queensland share price summary

It has been a solid year for Bank of Queensland shares, which are trekking around 22% higher in 2021. Looking at a longer timeframe, its shares are hovering above 40% for the last 12 months.

Bank of Queensland commands a market capitalisation of roughly $5.9 billion, and has approximately 640.9 million shares outstanding.

The post The Bank of Queensland (ASX:BOQ) share price will trade ex-dividend on Thursday. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• Here are 5 ASX shares trading ex-dividend this week
• Why is the Bank of Queensland (ASX:BOQ) share price underperforming the big four lately?
• Why have investors been selling off Bank of Queensland (ASX:BOQ) shares lately?
• Top brokers name 3 ASX shares to buy today
• Can the BOQ (ASX:BOQ) share price hit $11 by the end of 2021?

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

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

The S&P/ASX 200 Index (ASX: XJO) has kicked off this Monday’s trading on a positive footing. At the time of writing, the ASX 200 is up a healthy 0.43% to 7,447 points.

The Xero Limited (ASX: XRO) share price is recording higher gains though. Xero is currently being priced at $150.54 each, 0.57% higher for the day so far.

It’s one of the more fortunate companies in the ASX tech sector today, which is mostly experiencing some selling pressure today so far.

Why are ASX 200 tech shares being sold off today?

Well, Xero’s outperformance doesn’t appear to be anything to do with the company specifically. The company has not made any major or price-sensitive announcements to investors thus far this Monday. Or for almost a month, come to think of it.

What we do see though is what seems to be a market-wide rejection of ASX tech shares today.

It could be worse for Xero this Monday. Although Xero is in the green, other ASX tech shares, ranging from Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) to Zip Co Ltd (ASX: Z1P) and Altium Limited (ASX: ALU), are in the red across the board. Indeed, the S&P/ASX All Technology Index (ASX: XTX) is currently down by 0.61%.

So what’s going on here?

Well, this sell-off might have been sparked by what happened on the US markets last week. On Friday night (our time), the US’s tech-heavy NASDAQ-100 (INDEXNASDAQ: NDX) Index lost 0.87%. Tech shares, both here and in the US, have been struggling with rising government bond yields in recent weeks.

Although bond yields don’t have a direct impact on tech shares specifically, they still can have a big impact on how tech companies in particular are valued by investors. That’s because rising yields increase the risks of owning companies that are still in their ‘growth phases’ and not yet bringing in meaningful positive earnings.

That arguably covers many shares in the tech sector, including Afterpay and Xero. After all, the Xero share price is today being valued with an eye-watering price-to-earnings (P/E) ratio of 1,166.

Could Xero shares be a buy today?

So with the Xero share price now ‘only’ up 2.48% over the year to date, many investors might be wondering if this is a buying opportunity for Xero. One broker who thinks it might be is Goldman Sachs.

As my Fool colleague James covered last week, Goldman is currently rating Xero as a ‘buy’ with a 12-month share price target of $165 a share. That implies a future potential upside of more than10% over the next year. Goldman likes how Xero’s growth rates are holding up and feels like the company is now more fairly priced than it was in the past.

At the current Xero share price of $150.22 a share, this company has a market capitalisation of $22.32 billion.

The post The Xero (ASX:XRO) share price is holding up ASX tech shares today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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. owns shares of and has recommended AFTERPAY T FPO, Altium, Appen Ltd, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Altium, Appen Ltd, and Xero. 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/30YOu16

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decent gain. At the time of writing, the benchmark index is up 0.35% to 7,441.6 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Beach Energy Ltd (ASX: BPT)

The Beach share price is up over 4% to $1.44. This appears to have been driven by rising oil prices and a broker note out of Morgan Stanley. In respect to the latter, this morning the broker retained its equal-weight rating but lifted its price target on Beach’s shares to $1.70. It made the move on the belief that LNG prices will increase materially over the remainder of the 2020s.

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price is up 9% to $42.81. This follows news that the company is restarting its 40% owned Wodgina Lithium Mine in the Pilbara region of Western Australia. Wodgina has been on care and maintenance since November 2019. It will be restarted to initially produce 250,000tpa of spodumene concentrate. Production is expected to commence from the third quarter of 2022.

Origin Energy Ltd (ASX: ORG)

The Origin share price is up 3.5% to $5.36. This morning the energy company announced the sale of a 10% stake in Australia Pacific LNG for $2.12 billion to EIG. This leaves Origin with a 27.5% holding in the LNG business. Management notes that this cash injection provides further flexibility to deliver returns to shareholders and pay down debt, while allowing Origin to accelerate investment in growth opportunities.

Telstra Corporation Ltd (ASX: TLS)

The Telstra share price is up over 2.5% to $3.83. Investors have been buying the telco giant’s shares after it announced the acquisition of Digicel Pacific. Telstra has teamed up with the Australian Government to acquire the South Pacific-based telco for US$1.6 billion. The deal includes additional payments of up to US$250 million, subject to Digicel Pacific’s business performance over the next three years. Telstra expects the deal to be earnings per share accretive.

The post Why Beach, Mineral Resources, Origin, and Telstra are storming higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• Telstra (ASX:TLS) share price higher following Digicel Pacific acquisition news
• Why the Mineral Resources (ASX:MIN) share price is charging higher on Monday
• Origin Energy (ASX:ORG) share price on watch following $2b deal
• Telstra (ASX:TLS) share price on watch after announcing US$1.6bn Digicel acquisition

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 owns shares of 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/3EgH8V9

The AGL Energy Limited (ASX: AGL) share price is in the green on Monday despite no news released by the company.  

At the time of writing, the AGL Energy share price is trading at $6.16, 1.32% higher than its previous close.

The energy company’s not alone in its gains. Right now, the S&P/ASX 200 Energy Index (ASX: XEJ) is leading its peers with a 1.9% gain.

Topping the index is the Beach Energy Ltd (ASX: BPT) share price, which is boasting a 3.77% gain on Monday. That of Origin Energy Ltd (ASX: ORG) isn’t far behind. It’s gained 2.99% today.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up 0.43%.

Let’s take a look at what might be boosting ASX-listed energy shares higher on Monday.

AGL share price up alongside energy commodities

According to reporting by The Australian, Citi’s head of Australian banks research, Brendan Sproules believes oil and gas prices will continue to be volatile.

Data from CNBC shows the US natural gas futures has gained 4.8% today and 42% since this time last month. It’s currently sitting at US$5.53 per metric million British thermal units.

Additionally, oil prices have surged recently. The Brent crude futures price has gained 18% over the last 30 days to trade at US$85.93 per barrel. Right now, West Texas Intermediate oil futures is trading at US$84.40 per barrel, 23% higher than it was this time last month.

While AGL doesn’t specifically deal in oil, surging oil prices generally spell good news for the energy sector.

Additionally, as The Motley Fool Australia reported earlier today, some banks are predicting oil supplies will reduce in coming years as governments and investors move towards more environmentally-friendly energy supplies. Due to the law of supply and demand, lessening oil production will likely boost oil prices in the long term.

It’s possible the surge in energy commodity prices that could be boosting the AGL share price and the energy sector higher today, might be an ongoing boom.

The post Why is the AGL (ASX:AGL) share price having such a good start to the week? appeared first on The Motley Fool Australia.

More reading

• These are the 5 highest yielding dividend stocks in the ASX 200
• Why has the AGL (ASX:AGL) share price climbed 14% in a month?
• Own AGL shares? Here are the World Energy Markets Observatory’s future priorities
• Could the AGL (ASX:AGL) share price reach $7.50 by the end of 2021?
• AGL (ASX:AGL) share price slumps amid expert’s warning of earlier coal exit

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/2ZnkkE4

The Rhythm Biosciences Ltd (ASX: RHY) share price is lifting in early trade today as the medical technology company released an investor presentation.

At the time of writing, Rhythm Biosciences shares are changing hands at $1.50 each, signifying an 11% gain on the day.

Here are the details out of Rhythm’s camp today.

What was announced?

Rhythm gave a presentation regarding its “simple, low-cost blood test for the early detection of colorectal cancer”, known as ColoSTAT.

The company explains that ColoSTAT is a disruptive and transformative technology that is significantly cheaper and easier to administer than competing tests.

In fact, the assay format of ColoSTAT is designed to “integrate with existing pathology lab infrastructure” using a combination of a test kit and an algorithm to analyse the results.

It appears the company expects tremendous growth for the industry, forecasting a US$38 billion total addressable “screening value” and a total addressable market of 771 million people.

It forecasts it has the potential to reach 1 billion people if the screening age is lowered to 45 years old. This is based on what the US Preventative Services Task Force is currently advocating.

If Rhythm wants to successfully commercialise the product, its tests “must demonstrate both sensitivity greater than or equal to 74% and specificity greater than or equal to 90%”.

According to the company, it would meet these requirements in the US now “based on the study 6 performance of 84% sensitivity and 95% specificity”.

Aside from this, the company has also filed intellectual property (IP) patents in all its major target markets.

The patent, which expires in 2031, has been granted in a number of jurisdictions with just India pending.

Rhythm is targeting initial revenues for the product in late 2022 and it has already commenced its “platform technology pipeline for additional cancer detection tests”.

What’s next for Rhythm Biosciences?

The presentation also contained several “future value inflection points” that may weigh in on the Rhythm Biosciences share price.

It stated that it expects CE Mark submission and approval in Europe to be completed in late 2021. At the same time, it has progressed regulatory post-clinical trial recruitment in Australia for its “Study 7”.

As well, it will continue progressing its IP approvals in different markets while building out its sales and distribution channels for ColoSTAT.

Rhythm Biosciences share price snapshot

The Rhythm Biosciences share price has been an outsized winner this year to date posting a return of 72% since January 1. Indeed, it’s up almost 14% over the last month alone.

On a 12 month basis, the company’s shares have rallied an incredible 618%.

These results have far outpaced the S&P/ASX 200 Index (ASX: XJO)’s climb of around 21% over the same time.

The post Why is the Rhythm Biosciences (ASX:RHY) share price up 11% on Monday? appeared first on The Motley Fool Australia.

More reading

• Why is the Rhythm (ASX:RHY) share price climbing 10% today?

The author Zach Bristow has no positions 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/3GiMcdm