The Lykos Metals Limited (ASX: LYK) share price has had a remarkable debut to the ASX. Since listing, the battery and precious metals exploration company has skyrocketed in value.

In addition, the company’s oversubscribed initial public offering (IPO) was successfully fast-tracked by 3 weeks. In the process, Lykos raised $12 million to contribute to its endeavours.

Heading into afternoon trade, the company’s shares are being traded for 36 cents apiece, up 12.5%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.01% higher at 7,416.2 points.

What is happening with the Lykos share price?

The listing comes at an opportune time for Lykos. There is still plenty of excitement surrounding the battery technology and materials sector as forecasts indicate growing demand. In turn, the Lykos share price has been running red hot since listing.

Lykos owns 100% of the Sockovac project, Sinjakovo project, and the Cajnice project; located in the Republika Srpska, Bosnia, and Herzegovina respectively.

Additionally, these areas have a rich history of high-grade minerals discovery and extraction. Exciting investors, the projects are prospective for nickel, copper, cobalt, precious metals, lithium, and rare earth elements — all of which are common constituents of batteries and electric vehicles.

Capitalising on the growing trend, Lykos raised its maximum target of $12 million in its IPO. This involved the issuing of 60 million new shares at an IPO price of 20 cents a pop.

Simultaneously, the company issued 1 free option for every 2 shares through the listing. Each option has an exercise price of 30 cents per share and a two-year expiry. This places these options well in the money, with the Lykos Metals share price now trading around 36 cents.

Furthermore, the company listed with a total of 113.4 million shares on issue. At the current share price, this gives Lykos a market capitalisation of $40.8 million. In fact, the Lykos share price has skyrocketed 80% from its IPO price.

Management commentary

Following the successful ASX listing, Lykos Metals managing director Mladen Stevanovic said:

Listing on the ASX marks a significant milestone for Lykos Metals. I would like to thank all of our investors who recognise the significant potential for value creation at our three battery and precious metals projects in Bosnia-Herzegovina.

We are now funded to commence our initial two-year exploration campaign, starting with the Sockovac Project which is highly prospective for nickel.

Bosnia-Herzegovina is an outstanding mining and investment destination and I look forward to getting boots on the ground.

Moreover, the company is now carrying out an aggressive exploration program across the projects. The initial focus is on the high-grade nickel-focused Sockovac project.

Finally, a positive for the Lykos share price is its proximity to modern transport infrastructure. All three projects are near infrastructure that connects to Europe’s battery supply chain.

The post Lykos Metals (ASX:LYK) share price rockets 80% in first 2 days of trade appeared first on The Motley Fool Australia.

More reading

• Why is the Bank of Queensland (ASX:BOQ) share price underperforming the big four lately?
• QX Resources (ASX:QXR) share price rockets 43% on lithium project update
• Here’s why the Cashrewards (ASX:CRW) share price is surging 15% on Friday
• What’s happening with the CBA (ASX:CBA) share price this week?
• Why is the BHP (ASX:BHP) share price slumping today?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Bank of Queensland Ltd (ASX: BOQ) share price has had a rollercoaster journey in the past 3 months of trading.

At the time of writing, the Bank of Queensland share price is edging higher, up 0.44% to $9.17.

However, shares in the bank have been lagging the broader ASX financials sector lately.

Whereas the S&P/ASX 200 Financials index (ASX: XFJ) has climbed around 5% in the last month, the Queensland banking giant’s shares have gained less than 1%.

What’s with the Bank of Queensland share price lately?

Even though it has lagged its ASX financials peers of late, Bank of Queensland shares still nudged their 52-week closing high on 7 October.

However, the regional bank’s shares have been sold off with authority in the past 2 weeks. Its share price has decreased by 6% in that time.

This came after the release of Bank of Queensland’s FY21 results around 3 weeks ago.

In its report, the company recorded just over 80% year-on-year increase in cash net profit, enabling it to increase the full-year dividend to 39 cents per share – a gain of more than 200% from the year prior.

Although these figures came in ahead of the consensus of analyst estimates on the bank’s earnings, it wasn’t enough to overshadow the company’s meagre earnings outlook for FY22.

As interest rates continue to remain bottom-heavy into the near future, Bank of Queensland’s management anticipates contraction of its net interest margin in the range of 5–7 basis points.

The impact ultimately flows through to affect the level of earnings entitled to equity holders, via the earnings per share (EPS) metric.

Why is this important?

According to investing hall-of-famers Peter Lynch and Warren Buffett, this could all boil down to how the market prices securities.

Lynch, in his book One Up on Wall Street, and Buffett submit that market participants will generally price shares based on a combination of past earnings history, and especially, future earnings expectations.

As a rule of thumb, the higher the expected future earnings, the more likely a company’s share price will positively reflect this in the form of outsized returns.

Apparently, this point has some influence over the unseen hands of supply and demand, and on a share’s valuation.

Both legendary investors suggest that companies with higher expected cash flows into the future may be of a higher value to the investor today.

One study even showed that shares can actually provide excess returns for 13 to 26 weeks on average after a positive earnings surprise.

Hence, given the market is also quite efficient in its pricing mechanisms, it appears the market is continuing to price in the effects of the bank’s earnings revision.

In the absence of any other price-sensitive information during that time, it appears investors may be partially spooked on this new outlook of earnings for Bank of Queensland shares.

The Bank of Queensland share price is up 21.5% this year to date, after climbing 42% in the last 12 months.

The post Why is the Bank of Queensland (ASX:BOQ) share price underperforming the big four lately? appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy today
• Can the BOQ (ASX:BOQ) share price hit $11 by the end of 2021?
• Which ASX 300 shares are leading the way mid-week?
• Why Bank of Queensland, Fortescue, Liontown, & Pact shares 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 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 QX Resources Ltd (ASX: QXR) share price is powering ahead during afternoon trade. This comes after the mineral exploration company provided an update on the Turner River lithium project.

At the time of writing, QX shares are swapping hands for 3 cents apiece, up 42.86%. It’s worth noting that its shares reached a multi-year high of 3.4 cents before pulling back due to profit-taking.

What did QX announce?

In its release, QX advised it has exercised its option to acquire a 100% interest in the Turner River lithium project.

Located in the Pilbara region of Western Australia, Turner River is considered a highly prospective lithium project. The site holds an exploration licence application (ELA45/6042), covering a 45 square kilometre area.

Late last month, QX entered into a binding option agreement with Redstone Metals. A 30-day option to undertake technical due diligence was offered before proceeding with the deal.

QX has since exercised the option in advance of the due diligence period lapsing, reflecting its confidence in the project. As such, QX will issue the vendor 12 million ordinary shares in consideration of ownership rights.

In addition, both parties have agreed to the facilitation of exploration licence ELA45/6042, which adjoins the Turner River lithium project to the north. QX will make a $6,000 cash payment to Redstone Metals for the additional permit. Together with the ELA45/6042, the tenement position at Turner River increases to 84 square kilometres.

QX chair, Maurice Feilich commented:

Following the recent site visit and after further reviews of the project’s geology and the surrounding prospects, we have taken the decision to not only exercise the Turner River option early but to expand our tenement holdings in the area by applying for some adjoining ground which looks equally as prospective.

Further site visits are planned and we look forward to keeping shareholders updated on progress here and with respect to the ongoing work in Queensland.

QX share price snapshot

In 2021, QX shares have doubled in value mostly due to today’s gains. When looking at a 12-month period, its shares are hovering above 60%.

Based on valuation grounds, QX commands a market capitalisation of roughly $18.69 million and has approximately 666.36 million shares outstanding.

The post QX Resources (ASX:QXR) share price rockets 43% on lithium project update appeared first on The Motley Fool Australia.

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• Here’s why the Cashrewards (ASX:CRW) share price is surging 15% on Friday
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• Why is the BHP (ASX:BHP) share price slumping today?
• What’s been happening with the Telstra (ASX:TLS) share price this week?
• The Helloworld (ASX:HLO) share price is on the rise after trading update

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.

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The Cashrewards Ltd (ASX: CRW) share price is taking off today after the company announced it has entered into a takeover agreement.

Under the agreement, all Cashrewards shares not already owned by a venture arm of Australia New Zealand Banking Group Ltd (ASX: ANZ) will be bought by the entity for $1.135 per share.

At the time of writing, the Cashrewards share price is $1.09, 15.26% higher than its previous close.

Let’s take a closer look at the proposed takeover of the cashback reward program operator.

Cashrewards ripe for the takeover

The Cashrewards share price is surging on news the company is set to be bought by an entity managed by 1835i Group Pty Ltd at a price that values it at approximately $89.5 million. 1835i is ANZ’s external innovation and venture capital partner.

The Cashrewards board committee has voted in favour of the entity’s all-cash offer of $1.135 per share.

The offer represents a 19.5% premium on Cashrewards’ closing price yesterday and a 30.2% premium on its 30-day volume weighted average price.

The takeover is subject to 90% shareholder approval, as well as other conditions.

1835i already holds 19% of Cashrewards’ issued shares after they were transferred from ANZ’s holdings last week.

ANZ secured the 19% holding in Cashrewards’ initial public offering (IPO), which occurred in December 2020. The bank later teamed up with Cashrewards to create Cashrewards Max.

Additionally, 2 of the company’s largest shareholders, together holding 39.4% of its outstanding shares, intend to vote in favour of the takeover.

If successful, the takeover will see Cashrewards operating independently while continuing its commercial partnership with ANZ.  

1835i has also agreed to lend Cashrewards up to $15 million for a term of 6 months from today. The funds will go towards Cashrewards’ member liability payment obligations. The loan is subject to several conditions, including that both parties continue moving forward with the takeover.

Cashrewards share price snapshot

Cashrewards’ first year on the ASX hasn’t gone smoothly. The company’s share price has fallen 36.7% since it debuted with an offer price of $1.73 per share.

However, including today’s gains, it has moved 25% higher since the start of October.

At its previous closing price of 95 cents, the company has a market capitalisation of around $74.8 million.

The post Here’s why the Cashrewards (ASX:CRW) share price is surging 15% on Friday appeared first on The Motley Fool Australia.

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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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The Commonwealth Bank of Australia (ASX: CBA) share price is edging lower in early afternoon trade, down 0.53% to $104.39 per share.

If shares close in the red today, that will mark 3 days of losses and 2 of gains for the big 4 bank this week. Fortunately for shareholders, the gains outstrip the losses leaving the CBA share price up 2.43% for the week, at time of writing.

Here’s why the bank was in the news this week.

What’s been happening with the CBA share price this week?

The CBA share price closed up 1.6% on Monday. That was the day CommBank announced its funds management division, Colonial First State (CFS), was going to team up with global asset manager, Blackrock.

As The Motley Fool reported, “The partnership with Blackrock relates to the ‘FirstChoice Lifestage’ portfolios. This is for CFS’ MySuper products, FirstChoice Employer Super and Commonwealth Essential Super.”

Commenting on the rationale behind the partnership, CFS said:

Partnering with BlackRock and utilising their global scale and international investment skills, technology capabilities and consistent track record of delivering competitive returns, will allow us to improve the performance of our MySuper products more quickly.

What to expect from the CBA’s quarterly results?

On Tuesday, my Foolish colleague James Mickleboro, analysed a broker note from Bell Potter, reporting that its analysts expect a “decent” performance from the bank’s Q1 FY22 results, due out next month.

And Bell Potter remains bullish on the bank’s outlook for the full 2022 financial year. The analysts forecast a full year cash profit of $9.5 billion, a year-on-year increase of 9.6%, along with a 16% boost in the FY22 dividend.

Bell Potter also forecasts a big lift in the CBA share price, with a price target of $118 per share.

But not all analysts are equally optimistic about the bank’s value.

Mickleboro noted that, “One of the most bearish brokers is Morgans. According to a recent note, its analysts have a reduce rating and $80.00 price target on the shares of Australia’s largest bank.”

If Morgans is right, that implies the CBA share price could fall by some 24% over the next 12 months.

CBA share price snapshot

The CBA share price has been an outperformer in 2021, up 25%. That’s more than twice the 11% year-to-date gains posted by S&P/ASX 200 Index (ASX: XJO).

Over the past month CBA shares are up 5%.

The post What’s happening with the CBA (ASX:CBA) share price this week? appeared first on The Motley Fool Australia.

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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 BHP Group Ltd (ASX: BHP) share price tumbled in early trade today, sliding 3.2% to $37.25 within minutes of opening.

At the time of writing, shares in the iron ore major are down 2.31% trading at $37.59.

What’s driving the BHP share price lower?

Iron ore prices tumble

Iron ore prices slumped overnight, down US$7.14 or 5.8% to US$116.93 a tonne.

According to Fastmarkets, the downward price movement was largely aligned to the “bearish mood” in steel prices and demand.

In the futures market, China’s most active futures contracts for January 2022 delivery on the Dalian Commodity Exchange have opened lower on Friday, down 3.6% to 673 yuan (~US$105) a tonne.

Reuters yesterday reported weakness in China’s steel consumption, quoting analysts as saying stainless steel consumption was “still slow in the short term as recent power rationing has hurt manufacturing activities in the world’s second-largest economy”.

Headwinds impacting Chinese economy

On Monday, China reported a September quarter GDP growth of 4.9% year-on-year, the lowest since the third quarter of 2020.

The Chinese economy faced several headwinds in the last quarter ranging from its energy crisis to surging raw material prices.

Perhaps more relevant to the BHP share price, economic indicators such as factory output, investment in construction and other fixed assets all have weakened.

Chinese policymakers said on late Wednesday that it would ask futures exchanges to take measures to tackle surging coal prices, including raising fees and restricting trade limits.

Surging copper prices lose momentum

Also potentially adding to the BHP share price woes is the sudden reversal of fortune for copper.

Copper prices surged from US$4.09/lb to highs of US$4.82/lb in October as stockpiles hit a 47-year low.

However, copper spot prices fell sharply overnight, closing the session down 3.72% to US$4.55/lb. This is despite the world’s largest publicly listed copper player, Freeport-McMoRan Inc, advising it will producer less copper than expected.

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

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• These are the 5 highest yielding dividend stocks in the ASX 200

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.

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This week has been an interesting one for the S&P/ASX 200 Index (ASX: XJO). As it stands this Friday, the ASX 200 is in the green, although ever so slightly. The ASX 200 is currently up by 0.08% at the time of writing to 7,421 points. That puts it in the green for the week so far too, by around 0.9% to be precise. But what of the Telstra Corporation Ltd (ASX: TLS) share price?

Telstra is, of course, one of the ASX 200’s staple blue chip shares. And one which has been delivering some impressive returns for investors in recent years.

The Telstra share price is presently up a pleasing 24.92% year to date in 2021, as well as being up a robust 36.7% over the past 12 months. That compares pretty favourably against the ASX 200, which has managed to eke out gains of 10.65% and 20.02% over the same periods respectively.

But how has Telstra performed over the past week?

Telstra share price has a week to forget

Well, not as impressively, as it turns out. Telstra started the week at a share price of $3.85. As it stands today at the time of writing, Telstra is trading at $3.76 a share. That means this ASX 200 telco has gone backwards by 2.34% over the week so far. That contrasts very unfavourably against the ASX 200’s gains of 0.62% so far.

So what might have sparked this lacklustre performance from Telstra this week?

Well, we can’t say for sure. There have been no news or announcements out of the telco this week at all. However, there have been some other developments in the ASX telco space which might have played a role.

The first was the results of a report on Australian internet speeds that my Fool colleague Brooke covered back on Tuesday. According to the Ookla quarterly Australian internet speed report, Telstra’s broadband internet was, on average, slower than most of its rival telco providers, including Optus, iiNet, Vodafone, Aussie Broadband Ltd (ASX: ABB) and TPG Telecom Ltd (ASX: TPG). Not exactly a good look for Telstra.

The second was news from Aussie Broadband, a newer rival to Telstra in the telco space. As we covered just this morning, there are rumours that Aussie Broadband is in talks to purchase the IT telecommunications provider Over The Wire Holdings Ltd (ASX: OTW). Over the Wire is “a company that specialises in converged voice and data networks”, as my Fool colleague Zach covered earlier.

It’s possible that a combination of these developments has seen investors lose interest in Telstra shares, at least temporarily.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $44.84 billion, a price-to-earnings (P/E) ratio of 24.11 and a dividend yield of 4.26%.

The post What’s been happening with the Telstra (ASX:TLS) share price this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited and TPG Telecom 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 Helloworld Travel Ltd (ASX: HLO) share price has been on an upward trajectory this past month or so.

At the time of writing, Helloworld shares are edging higher and are now trading up around 0.72% at $2.79. However, that’s down from an earlier high of $2.89.

Shares in the international and domestic travel retailer are on the move after it released its trading update for the 3 months ended 30 September 2021.

Helloworld share price spikes on 63% revenue jump

The company detailed several investment highlights this quarter, including:

• Revenue for the period totalled $20.3 million, up 62.7% year on year (YoY);
• EBITDA loss for the quarter was $3.6 million compared with $6.3 million in Q1 FY21;
• September quarter last year benefitted from $10.4 million of wage subsidies in Australia and NZ which materially offset the gross wages and on-costs of $19.3 million for the period, reducing the net cost to $8.9 million; and
• Total transaction value (TTV) for the quarter was $266.5 million, up 50.7% on the same period last year.

What happened this quarter for Helloworld?

The Helloworld share price is gaining after what appears to be positive news out of the travel company. It seems to have made an impressive start to the financial year, having increased its TTV year-on-year for the last 3 consecutive months.

Helloworld defines TTV as the price at which travel products and services have been sold into its end markets, such as airlines and logistics.

Consequently, the company derives its revenue from TTV, despite this being in misalignment with the Australian Accounting Standards’ classification of revenue.

In saying this, the company also said roadblocks to its earnings potential were lifted this quarter. For instance, July and August of 2021 saw losses at the earnings before interest, taxes, depreciation, and amortisation (EBITDA) line of approximately $1.5 million each month.

Fast forward a month to September, and the EBITDA loss was reduced to just $600,000 each month.

The release also notes that “headcount and gross personnel costs were reduced in the current quarter to $16.9 million”.

Partially offsetting this liability was “$2.7 million in government assistance” which effectively reduced the net cost to $14.2 million.

Corporate TTV in Australia came in around 25% higher to $132 million. That drove revenue 55% higher on the year in its domestic operations. Wholesale TTV was also up in Australia when exiting the quarter, climbing 154% YoY.

Meanwhile, in the company’s New Zealand operations, corporate TTV increased 15.7%. Wholesale TTV saw a massive hike from NZ$212,000 in Q1 FY21 to NZ$4.4 million.

Overall, TTV for Q1 FY22 came in around 51% higher than the year prior at $266.5 million.

The summation of these factors enabled the company to recognise a 63% YoY jump in revenues to $20 million.

This carried through to an EBITDA loss of $3.6 million for the quarter. That is substantially lower than the $6.3 million in the same period last year.

These figures seem to have been well received, judging by the Helloworld share price today.

What’s next for Helloworld?

The company provided extensive colour on its expected FY22 guidance. It forecasts Q1 FY22 TTV to increase to about 51% and derive a 63% hike in revenue from the same.

It also sees the loss at the EBITDA level improving by 50% for the quarter, even when factoring in a $7.9 million reduction in wage subsidies.

In addition to these factors, the company is presumably eager to get domestic and international travel started once again. In fact, Helloworld called the decision to re-open state and international borders later this year as “incredibly welcomed news”.

The company also stated it has a sufficient cash runway to last beyond CY22, based on its current cash burn rate and levels of liquidity.

Regarding its outlook, Helloworld CEO Andrew Burnes AO said: “Based on retail, wholesale, and corporate booking intakes across the first three weeks of October we expect a rapid improvement in sales volumes and revenues across the next six months.”

The Helloworld share price has enjoyed bathing in a pool of green this year to date. It has climbed 11% since January 1 and almost 50% in the last 12 months.

The post The Helloworld (ASX:HLO) share price is on the rise after trading update appeared first on The Motley Fool Australia.

More reading

• Why has the Helloworld (ASX:HLO) share price leapt 12.5% in a week?
• Why ASX 200 travel shares are having a bumper day

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Helloworld 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 Flexiroam Ltd (ASX: FRX) share price has come out of a trading halt today to rocket during mid-morning trade. This comes after the mobile network operator provided an update on its recent equity raise.

At the time of writing, Flexiroam shares are swapping hands for 4.2 cents, up 23.53%

Flexiroam completes placement

One catalyst for today’s surge in the Flexiroam share price could be investor appetite over its planned growth initiatives.

According to its release, Flexiroam announced it has completed a placement to raise $1.5 million with no fees payable. A number of existing professional and sophisticated investors including two large shareholders in the company participated in the placement.

The offer will see 37.5 million fully-paid ordinary shares, at a price of 4 cents apiece, allocated to the investors. This represents an 18% premium on the issued securities prior to when the company went into a trading halt on Wednesday.

Flexiroam will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval.

The company will use the proceeds from the capital raise to fund a variety of growth opportunities. This includes:

• Developing new eSIM solutions to capture Internet of Things (IoT) demand
• Executing on the growing pipeline of Flexiroam solutions
• Hiring sales & engineering resources across Europe to increase capacity and capability
• Driving global penetration and substantial revenue expansion in FY23

The new shares are expected to be issued on the ASX on 27 October.

Flexiroam CEO, Marc Barnett commented:

This capital raise, undertaken at a premium to the last traded price, is a strong signal of the value that our large investors see in Flexiroam and their confidence in the Management team’s ability to deliver on the opportunity in front of us.

We have an ambitious growth strategy across both our Travel and Solutions verticals. The funds raised provide us with additional capital to execute on our growth plans, and the premium valuation highlights the inherent value of our business relative to our market capitalisation.

Flexiroam share price summary

Adding to today’s meteoric gains, Flexiroam shares have jumped around 140% in the past 12 months. The company’s share price is still some way off its 52-week high of 9.6 cents reached in early February.

Based on valuation grounds, Flexiroam commands a market capitalisation of around $20.63 million, with over 503 million shares outstanding.

The post Flexiroam (ASX:FRX) share price surges 24% following cap raise appeared first on The Motley Fool Australia.

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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.

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The Carbon Revolution Ltd (ASX: CBR) share price is sliding in morning trade, down 7.21% to $1.03 per share.

Below, we look at the carbon fibre wheel manufacturer’s business update for the quarter ending 30 September (Q1 FY22).

What did Carbon Revolution report for Q1?

The Carbon Revolution share price is sliding today after the company reported a 28% quarter-on-quarter decrease in revenue. Q1 FY22 revenue came in at $6.2 million.

Revenue from Carbon Revolution’s wheel sales was $5.9 million with $300,000 of revenue from engineering services and tooling.

The company said revenue was in line with its expectation for the full 2022 financial year, adding that “the planned inventory build-ahead is currently on track to support the expected second half weighting of FY22 sales”.

According to the update, the 35% drop in the number of wheels sold in the past quarter (2,100) was largely due to semi-conductor chip shortages that have been hampering the global automotive industry. This saw the “GT500 wheel sales for model year 21 conclude earlier in Q1 FY22 than would otherwise have normally been expected”.

Carbon Revolution said its customer orders and “their forecast profile”, including Ferrari, indicated a lift in annual sales in the second half of the financial year.

The company has a cash balance of $63.9 million as at 30 September, saying the net cash outflow of $23.4 million in Q1 was in-line with its expectations.

Looking ahead, Carbon Revolution said with ongoing uncertainty about COVID-19’s impact on the global car industry and semi-conductor chip shortages it would not provide sales guidance for FY22.

Looking at potential growth it added:

In contrast with this time last year, customers are now focusing on future product planning and the global move towards electric vehicles is an added factor driving this increasing engagement.

Carbon Revolution share price snapshot

The Carbon Revolution share price has been struggling in 2021, down 61%. By comparison the All Ordinaries Index (ASX: XAO) is up 11% year-to-date.

Over the past month Carbon Revolution shares are down 9%.

The post Carbon Revolution (ASX:CBR) share price sinks 7% on quarterly revenue drop appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution 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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