The Coda Minerals Ltd (ASX: COD) share price is rocketing today, up 18% at time of writing to $1 per share.

Below we take a look at the latest drilling results that look to be driving investor interest in the ASX resource explorer.

What drilling results were announced?

The Coda Minerals share price is surging after the company reported “significant preliminary results” at its Elizabeth Creek Project, located in South Australia.

The results come from its ongoing iron oxide copper gold (IOCG) drilling program at Emmie Bluff Deeps. That’s part of Elizabeth Creek, which Coda is exploring along with its joint venture partner on the project, Torrens Mining Ltd (ASX: TRN). The Torrens share price is up 5% today.

According to the release, 4 new holes had hit thick copper-sulphide mineralised intercepts. This now extends the mineralised envelop to the north, east and south. The company highlighted that one hole struck zones “dominated by bornite, a high-grade copper sulphide”. The core of that mineralised zone has been extended 70 metres and remains open to the south.

The Coda Minerals share price could be getting an extra boost from the company’s statement that historical data “indicates the potential for significant extension in multiple directions” across the project.

Commenting on the results, Coda Mineral’s CEO, Chris Stevens said:

We have now had an outstanding run of nine holes from this and the previous drilling program. All have returned materially important intersections and we are beginning to demonstrate a clear trend of increasing thickness and tenor of mineralisation as we systematically follow the bornite-dominant zone to the south-east.

In particular, the results from EBD3W3B are exceptional. Once confirmed by assays, this hole will not only materially extend the known bornite-dominated zone but should also give us one of our thickest sulphide intersections to date.

Stevens said Coda had a cash balance of $17.8 million as at 30 September, leaving the company well-funded to continue its “ambitious ongoing exploration program” well into 2022.

Citing delays at assay laboratories that are impacting everyone in the industry, Coda expects to receive assay results for the 5 holes before Christmas.

Stay tuned.

Coda Minerals share price snapshot

It’s been a banner year for the Coda Minerals share price, up 211% since 4 January. For some context, the All Ordinaries Index (ASX: XAO) has gained 8% year-to-date.

Over the past month shares, in Coda Minerals are up 12%.

The post Here’s why the Coda Minerals (ASX:COD) share price is rocketing 18% today 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 S&P/ASX 200 Index (ASX: XJO) is having a bumpy start to the trading week this morning. The ASX 200 is currently down by 0.21%% at 7,244 points after a brief dive and rebound just after market open today. But one ASX 200 share is still very much in the red so far. That would be the Magellan Financial Group Ltd (ASX: MFG) share price.

Magellan shares are, at the time of writing, down a nasty 3.61% at $31.20 a share. Not only that, this ASX fund manager dipped as low as $30.15 a share earlier in the trading day. That’s a new 52-week low for Magellan shares. It’s also the lowest pricing this company has seen since early 2019.

So what’s gone so wrong for Magellan today?

It’s likely to do with the funds under management (FUM) update the company released to the markets before open this morning.

Magellan, as a fund manager, releases its FUM every month, including its specific inflows and outflows. Today’s release covered the month of November.

Magellan share price slumps on FUM numbers

So Magellan told investors that its total FUM stood at $116.413 billion (as of 30 November). That’s up 1.41% from the $114.8 billion the company recorded on 31 October.

Retail FUM decreased slightly over the month, falling from $30.31 billion on 31 October to $20.23 billion on 30 November. However, institutional FUM rose from $84.5 billion to $86.18 billion over the same period.

All three of Magellan’s fund divisions saw rises. Global Equities rose from $85.14 billion to $86.27 billion. Infrastructure Equities was up from $19.97 billion to $20.45 billion, while Australian Equities rose from $9.69 billion to $9.7 billion.

Saying that, the Australian dollar had quite a fall between 31 October and 30 November. Magellan tells us that the Aussie was buying 75.11 US cents as of its October numbers, but had fallen to 70.9 US cents by November. As you can tell from the above figures, the vast majority of Magellan’s FUM is invested in international assets, most of which would be priced in US dollars.

As such, it’s very possible that on a constant currency basis, Magellan’s FUM would have actually fallen over the month just gone, or at least not look quite as rosy as it does with the drop included.

This could be one of the reasons why investors seem to have reacted so negatively to this announcement this morning.

Whatever the real reason for investors’ harsh reaction today, no doubt many of Magellan’s investors will be disappointed.

At the current Magellan share price, this company has a market capitalisation of $5.79 billion, a price-to-earnings (P/E) ratio of 21.6 and a trailing dividend yield of 6.77%

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

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

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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is following the lead of US markets and trading lower. The benchmark index is currently down 0.2% to 7,225.7 points.

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

Metcash half year results impress

The Metcash Limited (ASX: MTS) share price is charging higher today after delivering a strong half year result. For the six months ended 31 October, Metcash reported a 1.3% increase in revenue to $7.2 billion and underlying profit after tax growth of 13.1% to $146.6 million. As a comparison, Ord Minnett was expecting a net profit of $141 million for the six months. In addition, Metcash revealed that the second half has started strongly.

Kogan and Redbubble sink

It has not been a good start to the week for ecommerce companies Kogan.com Ltd (ASX: KGN) and Redbubble Ltd (ASX: RBL). Both ASX shares are tumbling today amid weakness in the tech sector and news that they are being dumped from the ASX 200 index at the next quarterly rebalance. They will leave the index along with four other shares on 20 December.

Bapcor CEO kicked out

The Bapcor Ltd (ASX: BAP) share price has continued its slide after revealing that its CEO will now exit immediately instead of in February. The auto parts retailer advised that since announcing the retirement of Darryl Abotomey as its CEO, there has been a marked deterioration in the relationship between him and the Board. As a result, “Mr Abotomey’s position as MD and CEO has become untenable.” This led to the Board making the unanimous decision to exercise its rights to bring forward his retirement immediately.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Metcash share price with a gain of almost 6% following its half year results. The worst performer has been the Zip Co Ltd (ASX: Z1P) share price with a 7.5% decline amid broad weakness in the tech and BNPL markets today.

The post ASX 200 (ASX:XJO) midday update: Metcash jumps, Kogan and Zip sink appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

A popular TV game show from a few years ago asked the question, “Who wants to be a millionaire?” The answer is easy — nearly everyone.

Achieving the goal isn’t so easy for investors, though. To become a millionaire usually takes a long time and a significant amount of money invested. But that’s not always the case. You could’ve made $1 million by investing less than $1,500 in each of these three cryptocurrencies — and done so within a relatively short period of time.

1. Shiba Inu

Shiba Inu (CRYPTO: SHIB) stands out as one of the most impressive makers of rags-to-riches stories of all time.  If you invested only $1.56 in the digital token when it launched in August 2020, you’d now have $1 million.

How in the world did Shiba Inu skyrocket so much? For one thing, it started out trading at a minuscule amount. More importantly, though, Shiba Inu piggybacked on the success of another token — Dogecoin (CRYPTO: DOGE).

Both Shiba Inu and Dogecoin use the Shiba Inu dog as their mascot. Unlike Dogecoin, though, Shiba Inu is compatible with the Ethereum (CRYPTO: ETH) platform. That means that it can be used with Ethereum wallets and potentially be integrated with decentralized finance (DeFi) apps built on the Ethereum blockchain.

Don’t expect a small amount invested in Shiba Inu to make you a millionaire anytime soon these days, though. Some view it as the most dangerous cryptocurrency to own. Whether or not that take is correct or not, it’s virtually impossible for Shiba Inu to achieve anywhere close to the gains it’s racked up so far going forward.

2. Ethereum

Ethereum ranks as the second-biggest cryptocurrency in the world with a market cap of close to $537 billion. While the blockchain wasn’t officially launched until July 2015, Ethereum’s initial coin offering (ICO) occurred in the previous year. Had you bought only around $69.50 of Ether tokens in that ICO and held onto them, you’d now have $1 million.

The one overriding factor behind Ethereum’s meteoric rise is its real-world utility. Ethereum’s blockchain supports smart contracts that enable the execution of agreements on the internet with no intermediaries.

Another important example of this real-world utility is that the Ethereum blockchain can host other cryptocurrencies. Indeed, nearly half of the top 100 tokens based on market cap are compliant with Ethereum’s ERC-20 standard.

Other blockchains hope to dethrone Ethereum by offering faster transaction speeds and lower costs. However, a major upgrade is on the way in 2022 that should make Ethereum more competitive. It’s not likely to repeat the impressive performance of the past seven and a half years, but the cryptocurrency could still be a winner over the long term.

3. Dogecoin

Dogecoin (CRYPTO: DOGE) was launched in 2013 as a fun alternative to Bitcoin. Early investors have certainly had a lot of fun. An initial investment of around $1,492 in Dogecoin when it first became available for mining would now be worth $1 million. 

Online investing communities soon began jumping aboard the Dogecoin train. It gained popularity in tipping on Redditt and Twitter. However, Dogecoin really hit its stride after Tesla CEO Elon Musk began tweeting about it.

Musk has stated that Dogecoin is his favorite cryptocurrency and is one of only three digital coins that he personally owns. He even has referred to himself the “Dogefather.”

The impact of the billionaire’s vocal support has its limits, though. Like Shiba Inu and Ethereum, Dogecoin almost certainly won’t be able to deliver the level of returns going forward as it has in the past. The cryptocurrency could still potentially make money for investors over the long term, but it’s unlikely to make quick millionaires. 

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

The post You could’ve made $1 million investing less than $1,500 in these 3 cryptocurrencies appeared first on The Motley Fool Australia.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bitcoin, Ethereum, Tesla, and Twitter. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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Although it’s faring better than the US markets, the ASX is nevertheless very volatile at the moment.

The uncertainty about the COVID-19 Omicron variant seems to be making investors jittery. Will it be resistant to vaccines? Will it cause more lockdowns?

“Markets will remain watchful of Omicron developments, with a seemingly inevitable further surge in global reported cases likely,” said BetaShares chief economist David Bassanese.

“Another uncomfortably high US consumer price index report on Friday will be the other big market focus this week.”

Nervous times call for a stiff drink and maybe a flutter.

If you want to literally back those habits, Morgans has helpfully picked out 3 drinking and gambling ASX shares among its “best ideas” for December.

“Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence,” said analyst Andrew Tang.

A demerger that will provide value

Tabcorp Holdings Limited (ASX: TAH) shares have done well this year, climbing 27% while giving out a 2.86% dividend yield.

Tang reckons there is more to come in the coming year as it separates out the Lotteries and Keno business.

“At current levels, we think Lotteries and Keno is trading on ~15x EBITDA and think this multiple can re-rate to between 16x and 20x on a standalone basis over time, supported by offshore peer comps and domestic infrastructure names.”

Drinking shifts from home to pubs

Supermarket giant Woolworths Group Ltd (ASX: WOW) spun off its alcohol retailers as its own company Endeavour Group Ltd (ASX: EDV), which listed back in June.

Endeavour’s operations include recognisable brands like Dan Murphy’s and BWS.

The shares have dipped 5.45% in the past couple of weeks, which might present a buying opportunity.

The team at Morgans is confident further growth will come as Australia shifts to a post-pandemic mode.

“While Endeavour’s retail division has benefited greatly from lockdowns and higher at-home consumption, its hotels business has been negatively impacted by closures and restrictions,” said Tang.

“The reopening of venues in NSW and VIC should be positive for Endeavour overall, despite likely weakness in retail as at-home consumption normalises, given hotels is a higher margin business.”

Recovery from China ban

Shares for winemaker Treasury Wine Estates Ltd (ASX: TWE) were devastated last year in the wake of the Chinese government slapping retaliatory tariffs on Australian imports.

Since then the company has worked hard to diversify its target markets.

“TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets,” said Tang.

“However once it comps China earnings, we expect TWE to deliver strong earnings growth from the 2H22 [quarter] onwards.”

Organic growth could be accompanied by acquisitions, according to Morgans.

“We view TWE’s recent acquisition of Napa Valley luxury wine business, Frank Family Vineyards (FFV) as strategically important,” said Tang.

“This high margin business should see TWE achieve its US margin target two years earlier than planned.”

Treasury Wine shares are trading at $11.86 on Monday morning. They’ve gained 24.14% since the start of the year.

“The stock is currently trading at a material discount to its long term PE range,” Tang said.

“We see recent share price weakness as a great buying opportunity in this high quality company.”

The post Drinking and gambling: 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 recommended Treasury Wine Estates 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 past year has been a rewarding one for Lynas Rare Earths Ltd (ASX: LYC) shareholders. With a return of 130% since this time last year, the rare-earths mining company has been one of the highest returning investments in the S&P/ASX 200 Index (ASX: XJO) of the last year.

While the times have been good in recent history, the company’s managing director, Amanda Lacaze, is optimistic of an even brighter future. This sentiment was shared during Lynas’s annual general meeting (AGM) last week.

Electrification trend sparks rare-earth boom

The underlying strength behind the Lynas share price has been the rising price of rare-earth commodities. This includes neodymium-praseodymium (NdPr), a high purity magnetic alloy that is used in a growing number of technology applications. A significant contributor to the growth in demand for NdPr is the accelerating demand for electric vehicles.

In last week’s AGM, the company revised its forecast for NdPr demand growth. Previously, ASX-listed Lynas had pencilled out an annual growth rate of 7.5%. However, with global electric vehicle sales rising by 140% in the first quarter of 2021, the company now expects an annual growth rate of 10%. For context, NdPr is used in the permanent magnets used in electric motors.

The projected base scenario for electric vehicle (EV) share of the light-vehicle market in 2030 is 37% for China. Similarly, Europe and the United States are expected to reach a 33% and 17% EV share respectively. A much larger amount of rare-earths will likely be needed to cater to the significant number of EVs forecast to be on the road by 2030.

By 2030, regulations and incentives in China and Europe will likely propel EV market share to at least 1/3rd of all light-vehicle sales. In the US, that much market share would require an aggressive pickup in sales @McKinsey @FinancingRenew #Renewable https://t.co/wDoh4ZvBNg pic.twitter.com/mPL0KvOKHA

— Financing Renewables (@FinancingRenew) December 2, 2020

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Already, there are concerns of rare earths evolving into the next microchip crisis. Much like other elements used in EVs, such as lithium, a supply-demand imbalance is expected for the magnetic material.

For this reason, Lynas’s management team is expecting a continuation in favourable market conditions.

ASX-listed Lynas benefits from supply diversification

In addition to the strong demand for rare earths, Lynas is benefitting from countries diversifying their source. Historically, China has been the dominant force in rare-earth production, producing an estimated 91% of all rare earth metals.

This heavy reliance on China’s supply has fed into a push for local rare-earths supply in other regions. As such, ASX-listed Lynas has found itself in prime focus of investors, being one of few large-scale rare-earth producers outside of China.

The post Here’s how EV mania is supercharging growth for Lynas (ASX:LYC) appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of 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.

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The Strike Energy Ltd (ASX: STX) share price is going gangbusters today, currently up 14.6% at 17 cents apiece after rocketing out of the opening gates with an early 18% surge.

Below, we take a look at the ASX oil and gas explorer’s field update that looks to be spurring investor interest.

What gas field update was announced?

The Strike Energy share price is off to the races after the company reported “high-quality, low CO2, conventional gas accumulation” at its suspended Walyering gas field, located in the Perth Basin.

Strike said its Walyering-5 (W5) well results delivered a higher quality reservoir than it had expected, along with revealing additional gas pay in deeper sands. It has confirmed 4 gas charged reservoirs with a total gross thickness of 116 metres and total net pay of 51 metres. Peak porosities were reported at 21.5% with an average porosity of 15.4%.

Commenting on the results, Strike Energy’s CEO, Stuart Nicholls said:

The results of the Walyering-5 well have exceeded Strike’s pre-drill expectations with thicker and better-quality gas charged sands being encountered across several reservoirs. These results are another example of the excellent geoscience outcomes that the Strike team continue to deliver, and this result bodes well for ongoing success throughout the basin.

The co-location of the Walyering gas field with transmission infrastructure, better than pipeline quality gas and position on free-hold land, combines to make the potential for a very fast to market domestic gas development.

Strike Energy is the operator and the holder of a 55% joint venture (JV) interest in the project. Talon Energy (ASX: TPD) holds the other 45%. The Talon Energy share price is flat at time of writing.

Looking ahead, Nicholls said Strike and Talon would now come up with a plan for a fast, low-cost development. They also intend to have the resource independently certified.

Strike Energy share price snapshot

Despite today’s big leap, the Strike Energy share price remains down more than 40% in 2021. By comparison, the All Ordinaries Index (ASX: XAO) is up 8% year-to-date.

Over the past month, Strike Energy shares have gained 6%.

The post Here’s why the Strike Energy (ASX:STX) share price surged 18% today appeared first on The Motley Fool Australia.

More reading

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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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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.

On the surface, the stock market appears to be doing relatively well. The Nasdaq, S&P 500, and Dow Jones Industrial Average indices are all down around 5% from their recent highs and are still up big for the year. Look closer, however, and it’s clear that the prices of many smaller growth stocks, and even some top-tier companies, are hovering around 52-week lows.

Investors that follow the electric vehicle (EV) industry are probably wondering if the tech sell-off affects growth companies like Lucid Group (NASDAQ: LCID) and Nio (NYSE: NIO). Here’s a look at how each company could be impacted.

Lucid is no stranger to skepticism

Daniel Foelber (Lucid): It seems like a distant memory now, but it was only in August and September when share prices of Lucid were struggling to stay above $20 a share as early investors cashed out. The electric vehicle maker spent much of the summer fine-tuning its luxury sedan, the Lucid Air, but failed to mention the date everyone really cared about — which was deliveries. This period was followed by the company’s late September announcement that it had begun mass production, which was followed by its late October announcement that it had begun customer deliveries. These were major milestones that Lucid said it would hit in the second half of 2021. And once it hit them, investors breathed a sigh of relief and gained confidence that Lucid is the real deal, even though its battery technology already showed it was.

In hindsight, the stock price volatility looks rather silly. But uncertainty is a tricky beast that can get the best of both imagination and fear.

What Lucid management did well this year, especially during its Q3 conference call, was set expectations. The company knows that its financial figures will appear paltry for a few years, so it’s creating its own yardstick for the market to measure it on. For Lucid, that means setting goals for its cash position, reservations, number of showrooms and service centers, production, deliveries, and manufacturing capacity. Meeting and exceeding expectations in these performance indicators should be enough to keep Lucid’s investment thesis alive. But if Lucid incurs delays or falls shot due to unforeseen headwinds, investors may not be so patient. In this vein, Lucid is playing its own game.

No one knows how a stock will move in the short term. But if Lucid continues to deliver on its promises in 2022, then the long-term investment thesis will look even better than it does today.

Heading into a transition year

Howard Smith (Nio): Equity investors can be jittery when news headlines are flying, leading to reactions that are based on bigger-picture assumptions resulting in sector-wide stock moves. Investors need to balance that against what might be due to company-specific information.

Share prices of Chinese EV maker Nio have dropped more than 15% over the past several weeks, and a deeper look seems to indicate the drop was due to a combination of both a sector shift and some short-term news from the company. 

Fears of uncertainty surrounding the economic recovery from the pandemic and the potential spread of the new omicron variant impacted stocks in general in recent weeks. Fast-growing businesses in the tech sector typically get hit hardest when market jitters surface. Nio is one such business, and it has yet to report a profitable quarter. It makes sense that a general sell-off in highly valued stocks is going to include Nio. 

But some company-specific fears were put to rest this week, giving investors a potential opportunity as Nio moves into what should be a transitional year for its business. Last month, Nio disappointed investors when it announced only 3,667 vehicle deliveries in October. That was a decrease of 27.5% year over year. Those results were in sharp contrast to the first nine months of 2021, which showed an increase of more than 150% in deliveries compared to the prior-year period.

But the company returned to that prior growth in November when it delivered a monthly record of 10,878 electric vehicles. The dip in October was mainly due to disruption caused by work to upgrade its manufacturing lines in preparation for both higher volumes and new products. Nio expects to deliver three new products in 2022, including the highly anticipated ET7 luxury sedan. It is also expanding its sales into Europe beginning in Norway, with plans to move into Germany next year. With that backdrop of upcoming growth for the company, investors focused on the long-term can use the recent sell-off to get Nio shares at a discount.

Patience and perseverance are paramount 

Just like other growth stocks, Lucid and Nio are not impervious to volatility. Investors shouldn’t expect either stock to go to the moon before each company establishes itself as a long-term market participant.

However, Lucid and Nio both have a lot going for them that should help investors weather the current market storm in case things go south over the short term. If Lucid accomplishes its 2022 goals, it would signal strong demand for its vehicles and mark a major milestone that a new U.S. automaker other than Tesla can compete in the ultra-competitive luxury sedan market. Similarly, Nio continues to prove its mettle against a stout Chinese cohort of competitors and is expanding nicely internationally. For most investors, taking a basket approach by diversifying into multiple EV stocks offers one of the best ways to combat volatility. 

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

The post Does the tech sell-off affect EV stocks like Nio? appeared first on The Motley Fool Australia.

More reading

• Why Nio stock is trading lower today
• Could Rivian, Lucid, or Nio become the next Tesla?

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

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The Douugh Ltd (ASX: DOU) share price is having a day to forget after coming out of a trading halt. This comes after the financial wellness app provider announced an update on its recent share placement.

During mid-morning trade, Douugh shares are down 10.84% to 7.4 cents. This means that the tech company’s shares have fallen more than 20% in the past week alone.

What’s dragging Douugh shares lower?

Investors are scrambling to sell Douugh shares as the company prepares to dilute existing shareholder value.

According to its release, Douugh advised it has received firm commitments to raise $5.5 million through a share placement.

The company presented the offer to institutional and sophisticated investors at an issue price of 7.2 cents per share. This equates to roughly 76.4 million new ordinary shares being added to the company’s registry.

In addition, Douugh launched a share purchase plan (SPP) for retail investors under the same terms as the placement.

Seeking to raise a further $2.5 million, the SPP will be available to apply for starting tomorrow (7 December).

Together, Douugh expects the capital raising efforts to generate $8 million to accelerate user and revenue growth. This includes investment in research and development as well as marketing initiatives.

Douugh founder and CEO Andy Taylor commented:

We are delighted to have received this support from investors to be able to kick-off the AU integration with Railsbank and continue to build on the strong momentum we are showing in the US. In October, we increased our US customer base by 42% and revenue by 53% month-on-month, with November proving to be just as solid.

With the launch of our new Douugh Rewards offering this week in time for Christmas spending, the Crypto investing feature under development as well as a couple of major enhancements to the core product, we are well positioned in the coming months to further improve our activation rate to increase our revenue profile.

About the Douugh share price

Over the past 12 months, the Douugh share price has plummeted by more than 70%. The company’s shares reached a 52-week low of 5.9 cents in October, before moving in circles since.

On valuation grounds, Douugh commands a market capitalisation of around $33.57 million, with roughly 453.7 million shares on issue.

The post Why the Douugh (ASX:DOU) share price is sinking 10% today? 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 CSL Limited (ASX: CSL) share price is slipping amid reports a major broker has questioned why the company would go ahead with a potential $10 billion acquisition, citing “limited obvious product alignment”.

It follows last week’s rumours that CSL is looking to acquire Swiss company, Vifor Pharma.

At the time of writing, the CSL share price is $291.19, 2.18% lower than its previous close.

For context, the broader market is mixed this morning. The S&P/ASX 200 Index (ASX: XJO) is currently up 0.01% while the All Ordinaries Index (ASX: XAO) has slipped 0.03%.

Let’s take a closer look at today’s reports on the biotech giant.

CSL share price struggles amid acquisition confusion

The CSL share price might be being weighed down by Macquarie Group Ltd (ASX: MQG) analysts’ confusion over a potential major acquisition.

According to reporting by The Australian, a broker’s note sent to Macquarie clients – written by analysts David Bailey and Rachel Harwood – stated the rumoured purchase could be “financial accretive” for the company, but the strategic reasoning behind it is unclear.

Vifor Pharma is aiming to be a global leader in iron deficiency, nephrology, and cardio-renal therapies. It works to discover, develop, and manufacture pharmaceutical products.

The publication claims the analysts think, if the acquisition goes ahead, it could mean an earnings boost of around 5 cents per CSL share before synergies.

The company responded to the rumours last week, saying it regularly looked for strategic opportunities to improve its business. However, it noted there was no certainty it would be undergoing any kind of merger or acquisition activity.

The CSL share price dipped 2.5% on Friday when it fronted the acquisition talk.

Additionally, Vifor Pharma responded to “market speculations” on Friday, saying it “systematically reviews options that can strengthen its market position and/or accelerate the growth of the company”. Such options include both partnerships and acquisitions, which it doesn’t comment on.

The Australian has also reported CSL has tapped the Bank of America to undertake a capital raise. It’s said to be set to bolster its coffers by between $4 billion and $5 billion.

The company hasn’t responded to that claim.

The post Rationale behind CSL (ASX:CSL) acquisition play not ‘immediately apparent’: Macquarie 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. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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