The Milton Corporation Ltd (ASX: MLT) share price has been a major winner on the ASX broad indices over the last few weeks.

Whereas the S&P/ASX 200 Index (ASX: XJO) has slipped 0.4% into the red over the last month, the investment company’s shares have climbed 22%.

Let’s investigate further.

What tailwinds are behind the Milton share price?

The major takeout weighing in on the Milton share price right now is the proposed merger with Washington H. Soul Pattinson & Company Ltd (ASX: SOL).

Back in June, the company announced it had entered into a scheme implementation agreement with Soul Pattinson with the latter proposing to acquire 100% of the outstanding Milton shares it does not already own.

Under the proposal, Milton shareholders will receive several incentives. Firstly, they will receive a “scrip consideration” that reflects a 10% premium to Milton’s net tangible assets (NTA) pre-tax.

Next, they will receive a fully franked Milton special dividend of up to 37 cents per share, in addition to Milton’s final dividend of 8 cents per share. Shareholders will also access a portion of Soul Pattinson’s full franked FY21 dividend, estimated at 36 cents per share.

If the proposal is successfully voted through, Milton shareholders will own 33.8% of the new entity.

What’s happened since?

On 3 September, the company announced that both entities had finalised the exchange ratio for the proposed merger.

Both parties agreed that Milton shareholders will receive 0.1863 Soul Pattinson shares for every Milton share owned, if approved.

This exchange ratio implied a total value of $7.18 per Milton share based on Soul Pattinson’s share price of $35.76 at the timing of the release.

At the time, that value signified a 5.6% premium to the Milton share price. However, Milton shares are now exchanging hands at $7.38 apiece and Soul Pattinson shares are trading at $38.12.

As such, the economics of the exchange ratio now implies a total value of $7.62 per Milton share at Soul Pattinson’s current share price. This represents a premium of 3.2% to the current Milton share price.

As a result, Milton’s independent board has maintained its recommendation that shareholders vote in favour of the proposal. An independent expert has also concluded that the scheme is in the best interests of Milton shareholders.

What has management said?

Regarding the proposal, Committee of Independent Milton Directors’ chair Graeme Crampton said:

The exchange ratio confirmed today demonstrates the implied value in the proposed transaction for Milton Shareholders and underscores the Independent Directors’ recommendation. We continue to recommend that shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to the Independent Expert continuing to conclude that the Scheme is in the best interests of Milton Shareholders.

Milton share price snapshot

The Milton share price has climbed 54% this year to date, extending the previous 12 months’ return of 80%.

Both of these results have outpaced the broad index’s return of around 25% over the past year.

The post Here’s why the Milton (ASX:MLT) share price has rallied 22% in a month. appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, TechnologyOne climbs, Milton up

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 Washington H. Soul Pattinson and Company 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 buy now, pay later (BNPL) industry has grown rapidly in recent years.

Fueled by a shift to online shopping, ASX BNPL shares have seen significant increases in customer numbers and spending levels, which have flowed through to share prices.

Australia’s major player Afterpay Ltd (ASX: APT) has seen its share price rise from below $10 in 2018 to more than $130 currently. meanwhile, shares in its closest ASX competitor, Zip Co Ltd (ASX: Z1P), have lifted from less than a dollar in 2018 to closer to $7 today. 

A quick take on buy now, pay later

BNPL refers to a range of point of sale financing options that allow customers to pay for purchases via instalments. The BNPL provider pays the merchant for the goods, and the merchant pays the BNPL provider a fee for facilitating the transaction.

The customer is then required to pay the BNPL provider the cost of the goods in instalments. BNPL providers generally do not charge customers interest, but they may be charged fees for late or missed payments.

The COVID-19 pandemic has provided tailwinds to the sector as consumers moved online. A recent report in Business Wire said the adoption of BNPL was expected to grow steadily in Australia during 2021-2028, at a compound annual growth rate of 13.1%. 

The Australian industry is now starting to mature, with BNPL players turning to global expansion to further grow their businesses.

Afterpay operates in North America, the United Kingdom, Australia, and New Zealand, and launched into Canada, Spain, France and Italy in FY21. Zip operates in 12 markets across 5 continents, including the United States, UK, Canada, and Mexico.

Newer competitor Sezzle Inc (ASX: SZL) listed on the ASX in 2019 and is focused on the North American market from its base in the US.

Splitit Ltd (ASX: SPT), which also listed in 2019, is headquartered in New York and is accepted by e-commerce merchants in 30 countries. 

How have ASX BNPL shares performed against the market?

ASX BNPL shares bounced back strongly from the March COVID-19 downturn to produce some impressive returns in 2020. Since peaking around February 2021, however, BNPL share prices have retreated somewhat.

The Zip share price is currently down 51% from its February peak of $13.92, with the Sezzle share price down 44% from a high of $11.72.

The Splitit share price is currently trading 72% below its February high of $1.51 while the Afterpay share price has retreated 17.5% from its own February high of $158.47.

By comparison, the All Ordinaries Index (ASX: XAO) is up 12.7% since February while the S&P/ASX 200 Index (ASX: XJO) is up by the same amount.

Who are the winners this earnings season? 

Afterpay was a strong performer this earnings season, reporting a 90% increase in underlying sales for FY21. The BNPL behemoth transacted $21.1 billion in sales for the financial year. Based on Q4 FY21 trading, this is a run rate of more than $24 billion per annum. This exceeds Afterpay’s objective of reaching $20 billion in underlying sales 12 months ahead of target.

Zip, which reported its results on the same day as Afterpay, saw transaction volumes increase 176% year on year to reach $5.8 billion. Zip reported that growth was continuing to accelerate in FY22, with year to date transaction volumes up 58% in Australia and 240% in the United States. 

Afterpay reported a 63% increase in customers over FY21, with 16.2 million active customers at the end of the financial year. Approximately 25,000 new customers joined Afterpay per day during FY21. Zip reported a 248% year on year increase in customer numbers, with 7.3 million customers at the close of FY21.

Both Afterpay and Zip also reported significant increases in the number of merchants offering their payment solutions. Zip grew merchant numbers by 109% to 51.3k, while Afterpay increased merchant numbers by 77% to 98.2k. 

And the losers in FY21? 

Not all ASX BNPL shares reported their full-year results in the August earnings season. Smaller players Sezzle and Splitit released interim results last month, providing insight into their growth progress.

According to Sezzle’s 2Q FY21 results, $1.4 billion in sales were made through its platform over the preceding 12 months. Sales for the quarter were $411.1 million, up from $375.1 million in the preceding quarter.

Splitit’s half-year report revealed sales of US$172.5 million for the half, which correlates to annualised sales of US$361 million. 

Sezzle reported 3 million active customers at the end of June, with its top 10% of customers transacting 49 times a year. Splitit added 134,000 new customers during the half, bringing total customers to 566,000. Sezzle counted 41,800 merchants at the end of June, while Splitit reported merchant numbers of 2800.  

Looking ahead?

As the BNPL sector matures, companies are looking offshore for growth opportunities. Sezzle is making headway with larger enterprise merchant partners as it seeks to scale its offering, with Target and GameStop onboarded.  Geographic expansion is also on the cards for the company — Sezzle’s primary market is the US, but it has also launched in Canada, India, and Brazil.

Splitit has also signed up multiple new large merchants, including Google Japan. This marks an important step in Splitit’s expansion into Asia. Zip is also focused on expanding its global footprint, launching in the UK and entering markets in Europe and the Middle East. 

Recent merger and acquisition (M&A) activity has highlighted opportunities in the sector, which may accelerate strategic focus and commercial integration.

Afterpay is set to be taken over by fintech Square Inc (NYSE: SQ) in a $39 billion deal announced last month. The Afterpay share price surged on the news, which will see shareholders receive 0.375 shares of Square Class A common stock for each Afterpay ordinary share they hold.

Square will establish a secondary listing on the ASX following the acquisition, which will allow Afterpay shareholders to trade Square using CHESS Depository Interests. 

While earnings are increasing as BNPL shares scale their offerings, none are yet profitable or paying dividends.

Zip raised $676 million in capital in FY21 but recorded a cash earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $22.9 million.

Afterpay completed a $774.4 million capital raise in early FY21, but reported a statutory loss after tax of $159.4 million. Sezzle reported a loss of approximately $30 million for the half-year, while Splitit reported a loss of US$18.77 million. Longer term, investors will likely expect ASX BNPL shares to shift to profitability. 

The post How have ASX BNPL shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

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• Leading broker reveals why these 10 big-name shares have been firing up its clients
• Is the Sezzle (ASX:SZL) share price a beaten-up buy?
• Afterpay’s done, so here’s the BNPL player we’re backing: expert
• Here’s why the Afterpay (ASX:APT) share price is up 5% in a month

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The Eclipse Metals Ltd (ASX: EPM) share price has been an exceptionally strong performer over the last month.

Since this time in August, the rare earths explorer’s shares have rocketed a whopping 120% higher.

This means the Eclipse Metals share price is now up 340% since the start of the year.

Why is the Eclipse Metals share price rocketing higher?

Investors have been bidding the Eclipse Metals share price higher in recent weeks following the release of a positive announcement in the middle of August.

That announcement revealed that the ongoing examination of historical diamond drill cores from an area near to the Ivittuut Greenland Project has been very promising.

The company advised that it has identified the potential for untapped rare earth, high grade quartz, cryolite, siderite, sphalerite and carbonate material.

What is the Ivittuut Greenland Project?

The Ivittuut Greenland Project is located in southwestern Greenland. It has a power station and fuel supplies to servicing it and local traffic to support mineral exploration. About 5.5km to the northeast of Ivittuut, the twin settlements of Kangilinnguit and Gronnedal, respectively provide a heliport and an active wharf with infrastructure.

The Gronnedal-lka carbonatite complex, where the drill cores have come from, is less than 10km from Ivittuut and only 5km from the port of Gronnedal.

It is one of the 12 larger Gardar alkaline intrusions in Greenland and is recognised as one of the prime rare earth elements (REE) targets in the country.

The release explains that the geophysical analysis over Gronnedal-Ika carbonatite/dyke geological units have been confirmed to be far more extensive than previously known, which is further encouragement for potential REE and sulphide mineralisation. REE occurs throughout the carbonatite complex, especially in late-stage veins where it occurs as various strontium REE carbonate minerals.

All in all, while there is still a lot of work to be done, the company appears to believe it has the potential to be a key supplier of REE in the future. This goes some way to explaining the strong gains by the Eclipse Metals share price over the last month.

The post Here’s why the Eclipse Metals (ASX:EPM) share price is up 120% in a month appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• This ASX 200 share has notched up 5 record highs this month
• Warren Buffett’s indicator is flashing red. Are we in for a share market crash?
• Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher
• Why the Okapi Resources (ASX:OKR) share price is rocketing 28% today

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

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Macquarie, its analysts have retained their outperform rating but cut their price target on this mining giant’s shares to $25.00. Macquarie remains positive on Fortescue and believes it can still generate 10% free cash flow yields in the medium term. This is due to its belief that a reduction in capital expenditure will offset weaker iron ore prices. As a result, it continues to forecast very generous dividend payments in the years to come. The Fortescue share price is fetching $17.92 today.

Healius Ltd (ASX: HLS)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this healthcare company’s shares to $5.50. The broker has upgraded its earnings estimates to reflect higher than previously forecast COVID-19 testing volumes. It also notes that FY 2023 is likely to be boosted by testing on international travellers. The Healius share price is trading at $4.98 on Wednesday afternoon.

Sandfire Resources Ltd (ASX: SFR)

Analysts at Macquarie have retained their outperform rating and $9.70 price target on this copper miner’s shares. According to the note, the broker was pleased with the company’s drilling results from the Motheo Project in Botswana. It believes the new discovery could provide it with a big boost to mining inventories. This comes at a time that copper prices are very favourable. The Sandfire Resources share price is trading at $6.58 today.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Leading broker reveals why these 10 big-name shares have been firing up its clients
• Fortescue (ASX:FMG) share price higher as China’s imports surge to record high in August
• Here are the 3 most heavily traded ASX 200 shares today
• Why the Rio Tinto (ASX:RIO) share price is in the red on Tuesday
• Fortescue (ASX:FMG) share price craters to 10-month low as iron ore prices plunge

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

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We’re only 8 days into the new month and one ASX 200 share has already beaten its own record high a whopping 5 times.

That’s particularly impressive considering the S&P/ASX 200 Index (ASX: XJO) has fallen 0.33% so far this month.

Additionally, the overachieving stock has seen its share price gain 17% since August’s end.

So, which ASX 200 share is behind such a remarkable performance? Let’s take a look.

Which ASX 200 share is setting records in September?

The TechnologyOne Ltd (ASX: TNE) share price has started September with a bang.

Last Wednesday it hit a record high, reaching $10.31 in intraday trade after announcing a new acquisition. It bested that figure on Friday when it reached $10.52.

This week, it surpassed its brand new record on Monday before besting Monday’s record on Tuesday.

Now, it has a brand new record high of $11.61, which it hit in intraday trade today.

The enterprise software-as-a-service company has called the ASX 200 home since 2014.

Last week TechnologyOne announced it has acquired the UK-based higher education timetabling and resources scheduling software provider Scientia.

TechnologyOne expects the acquisition will cost around $22 million (converted from pound sterling at the current exchange rate), with an initial payment of around $11 million.

TechnologyOne isn’t the only ASX 200 share hitting record highs today.

The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price broke its previous record high when it traded for $38.37 earlier today. While it’s been quiet today, Soul Patts did release a trading update on Monday, which might be spurring its gains.

Additionally, Aristocrat Leisure Limited‘s (ASX: ALL) stock surpassed its previous best today when it hit $47.91. As The Motley Fool reported yesterday, the ASX 200 gaming giant’s day in the green might be being spurred by its online gaming business, which has been relatively unaffected by COVID-19 lockdowns so far.

The post This ASX 200 share has notched up 5 record highs this month appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares that may be worth looking at this weekend
• ASX 200 rises, TechnologyOne climbs, Milton up
• Why Metalstech, Mineral Resources, TechnologyOne, & Webjet are storming higher
• ASX 200 midday update: TechnologyOne hits record high, lithium miners rise
• TechnologyOne (ASX:TNE) share price hits record high on UK acquisition news

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 owns shares of and has recommended Washington H. Soul Pattinson and Company 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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Warren Buffett may well be the best-known investor on the globe.

And for good reason.

He bought his first shares 80 years ago and clearly had a knack for understanding the markets.

The 91-year-old investor has now accumulated a net wealth of US$$101.3 billion (AU$136.9 billion), according to Forbes. That makes the Oracle of Omaha the sixth wealthiest man on Earth.

For the past many years, Warren Buffett has been at the helm of Berkshire Hathaway. And while he doesn’t get every market move right, when he speaks, investors tend to listen.

Which is why more than a few investors are taking note that the so-called “Buffett Indicator” is pointing towards a potential share market crash.

What is Warren Buffett saying on global share market valuations?

Warren Buffett’s “Buffett indicator”, if you’re not familiar, divides the total market capitalisation of all the listed shares across the world by global GDP. Any figure above 100% (meaning global shares are valued at more than the world’s total annual output) indicates shares are relatively overvalued.

Now, as Business Insider reports, “Warren Buffett’s favourite market indicator has surged to a record high of 142%, signalling US and international stocks are heavily overpriced and could plummet in the months ahead.”

Back in 2001, Buffett told Fortune magazine the indicator is “probably the best single measure of where valuations stand at any given moment”. It went into the red during the dotcom bust.

Any reading below 80% would “likely be lucrative” for investors to buy shares.

The valuation in the United States share markets using Warren Buffett’s indicator are even more dire. Dividing the total market cap of all US listed shares by US GDP gives an indicator reading of 208%.

Welt market analyst Holger Zschaepitz responded by tweeting (quoted by Business Insider), “BOOM! Global stocks have gained another $US1.6 ($AU2) trillion in market capitalization this week. Equities now worth $US120.3 ($AU162) trillion, highest in history.”

Should we be worried about a crash?

Warren Buffett is doing the right thing by sounding a note of caution.

However, it’s worth bearing in mind that we are not living in ordinary times.

COVID-19 has seen global governments and central banks take extraordinary actions over the past 18 months. This has driven the cost of money to record lows, helping drive up global share prices, while global GDP has been hampered by pandemic related lockdowns and border closures.

Hence, in these extraordinary times, the Buffett indicator may need some retuning.

The post Warren Buffett’s indicator flashing red. Are we in for a share market crash? appeared first on The Motley Fool Australia.

More reading

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• Why the Okapi Resources (ASX:OKR) share price is rocketing 28% today
• IGO (ASX:IGO) share price slips despite positive survey updates
• The Zip (ASX:Z1P) share price has plunged 30% in 5 months. Is it a buy?
• Here’s why the Deep Yellow (ASX:DYL) share price has surged 45% in a month

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.3% to 7,506.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is up over 5% to 19.5 cents. This follows the release of a drilling update by the copper and gold explorer. According to the release, Aeris Resources’ drilling results show that its Constellation deposit is a high grade copper deposit with some exceptionally high grade intersections in the shallow supergene zone.

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is up 5% to $179.72. This follows the release of a trading update from the the investment bank. According to the release, Macquarie expects its first half profits to be down slightly on the second half of FY 2021. Looking further ahead, the bank believes it is positioned to deliver superior performance in the medium term.

Novonix Ltd (ASX: NVX)

The Novonix share price is up a further 9% to $5.36. This is despite there being no news out of the battery materials company today. However, after the market close on Friday, it was announced that Novonix would be joining the ASX 300 index at the next quarterly rebalance on 20 September.

Qube Holdings Ltd (ASX: QUB)

The Qube share price is up 3.5% to $3.38. This morning the company announced a binding agreement to acquire Newcastle Agri Terminal (NAT). According to the release, the total consideration is in the order of $90 million, which will be funded through Qube’s existing undrawn debt facilities. Completion is expected to occur on 30 September.

The post Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher appeared first on The Motley Fool Australia.

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• ASX 200 midday update: Macquarie jumps, gold miners sink
• Macquarie (ASX:MQG) share price gains 6% despite lower second half forecast
• 5 things to watch on the ASX 200 on Wednesday
• The Macquarie (ASX:MQG) share price is outperforming the ASX big 4 in the past month
• The Macquarie Group (ASX:MQG) share price smashed its record high on Thursday

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Okapi Resources Ltd (ASX: OKR) share price is soaring to dizzying heights after the company reported a positive update.

At the time of writing, the miner’s shares are up an astonishing 27.89% to 66.5 cents. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.26% to 7,806 points.

Let’s take a closer look at what the company announced to the ASX today.

Major gold discovery

In a statement to the ASX, Okapi Resources revealed the results at its 100% Enmore Gold Project in New South Wales.

The maiden drilling program returned a significant, thick, shallow gold mineralisation at the Sunnyside East Prospect. The company highlighted the following results:

• 174 metres at 1.83 grams per tonne of gold from surface (OSSRC06)
• 37 metres at 1.27 grams per tonne of gold from 27 metres deep (OSSRC01)
• 39 metres at 1.19 grams per tonne of gold from 51 metres deep (OSSRC02)

Okapi Resources executive director David Nour commented:

These results show the potential for a very large, shallow, high-grade gold deposit at our Enmore Gold Project, with mineralisation from surface with some of the highest grades returned below 170 metres. The depth potential is very encouraging and we have multiple prospects that remain untested.

In addition, the company conducted several other drill holes at the Sunnyside West Prospect, located around 400 metres from Sunnyside East. They included:

• 7 metres at 1.25 grams per tonne of gold from 30 metres deep (OSSRC07)
• 17 metres at 0.69 grams per tonne of gold from 20 metres deep (OSSRC08)

Okapi Resources noted that further work is required at Sunnyside, including following up on drill intercepts and locating high-grade shoots.

About the Okapi Resources share price

Over the past 12 months, Okapi Resources has gained more than 224%, with a year-to-date rise of 241%. The company’s share price hit a record high of 79.5 cents today before profit-taking set in.

Okapi Resources has a market capitalisation of approximately $67 million, with around 101 million shares on its books.

The post Why the Okapi Resources (ASX:OKR) share price is rocketing 28% today appeared first on The Motley Fool Australia.

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• Here’s why the Deep Yellow (ASX:DYL) share price has surged 45% in a month
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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 IGO Ltd (ASX: IGO) share price has dipped into the red in afternoon trade on Wednesday.

Shares in the gold and minerals miner are on the way down despite the company releasing an update on its joint venture with Moho Resources Ltd (ASX: MOH).

Let’s investigate further.

A bit of background

Recall that IGO and Moho formed an unincorporated joint venture (JV) to explore and mine at Moho’s Buracoppin Gold project back in 2015.

Specifically, the JV pertains to a location known as “E70/4688” on the Buracoppin site. Moho is also the manager of the JV.

IGO has a 30% interest in the venture and the company has the option to contribute “pro-rata to ongoing work” or to convert its 30% interest into a “10% carried interest”.

What was announced today?

In news that could weigh in on the IGO share price, the company advised that “encouraging assay results” had been received from the “stream sediment sampling program” at Buracoppin.

The release was made through an announcement from Moho regarding the same assay results.

As per the release, a total of 369 samples were collected and “ten prioritised exploration targets” were identified as a result of the campaign.

These targets were found “within extensive areas of gold anomalism”. Some of the gold anomalism was “associated with arsenic and copper”, according to Moho.

As a result of the survey findings, “four areas [are] prioritised for further exploration” at the project. As such, an additional tenure has been granted, effectively “increasing [the] Buracoppin project by 12%”.

In addition, a “high resolution gravity survey” was completed at Buracoppin. The interpretation of this data “will assist Moho’s understanding” of the site.

Investors have sold IGO shares on the update and have pushed the IGO share price into the red on Wednesday.

IGO shares are now exchanging hands at $9.45 apiece, a 2.07% drop from the market open.

IGO share price snapshot

The IGO share price has climbed 47.5% over this year to date. This extends the gain over the previous 12 months to 111%.

Despite this, IGO shares are 3.6% in the red over the past month. They are around 2% in the red over the last week as well.

Nonetheless, both longer-term returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s returns of around 14% year to date and 25% over the past year.

The post IGO (ASX:IGO) share price slips despite positive survey updates appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares are trading ex-dividend today
• Why the IGO (ASX:IGO) share price is slipping today
• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to sell today
• IGO (ASX:IGO) share price jumps following 35% profit surge

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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Zip Co Ltd (ASX: Z1P) has had a tough run lately, but one trading and investment specialist has noted its clients have been drawn to its embattled share price.

Saxo Capital Markets placed Zip stock as one of the top 10 most traded stocks among its Australian clients last month. And it had some choice words to say about the future of the BNPL provider’s shares.

Right now, the Zip share price is $6.86, having fallen another 1.86% today.

Let’s take a look at what’s gotten Saxo’s clients riled up about the Zip shares.

Is now a good time to buy shares in Zip?

According to Saxo, its clients have been enthused by the Zip share price’s recent troubles.

The Zip share price fell a massive 34% over the 6 months ended 31 August. Zip’s often holds a spot on the list of the ASX’s most shorted shares, leading to increased volatility.

But is it a buy? According to Saxo, it’s not.

Saxo stated that Zip’s results for financial year 2021 were noticeably less impressive than those of its competitor, Afterpay Ltd (ASX: APT).

Zip posted an after-tax loss of $653 million for FY21. For comparison, Zip reported a loss of just $20 million for FY20.

Whereas Zip’s BNPL peer, Afterpay, reported a loss of $159.4 million for FY21.

Additionally, Zip ended the period with 7.3 million active customers and 51,300 active merchants. While Afterpay reported it had 16.2 million active customers and 98,200 active merchants.

According to Saxo, Zip’s FY21 performance has caused the market to lose confidence in its ability to compete globally.

Additionally, Saxo pointed to Square Inc‘s (NYSE: SQ) $39 billion acquisition of Afterpay and the continued growth of unlisted BNPL giant Klarna, stating Zip simply might not be able to keep up with the future of the BNPL industry.

Despite its recent poor performance, the Zip share price has gained 29% in 2021. It is also 1.6% higher than it was this time last year.

The post The Zip (ASX:Z1P) share price has plunged 30% in 5 months. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Leading broker reveals why these 10 big-name shares have been firing up its clients
• Afterpay’s done, so here’s the BNPL player we’re backing: expert
• These are the 10 most shorted ASX shares
• Zip (ASX:Z1P) share price jumps 2% despite new BNPL competitor
• It hasn’t been a great week so far for the Zip (ASX:Z1P) share price

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 AFTERPAY T FPO, Square, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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