• Here’s why the Whitehaven Coal (ASX:WHC) share price is rising today

    Group of smiling miners in coal mine

    The Whitehaven Coal Ltd (ASX: WHC) share price has stepped into the green on Thursday.

    At one stage Whitehaven shares were as high as $3.18. They have since partially retreated and at the time of writing are swapping hands for $3.11 apiece. That’s a rise of 2.98% on the day.

    Whitehaven shares are on the move after the company gained regulatory approval for a controversial coal expansion project that’s been on the slab since July.

    There’s a lot of moving parts here – but don’t worry, we’ve done the analysis for you.

    What was announced today?

    Whitehaven Coal advised that controversial plans to extend open-cut operations at its Vickery metallurgical coal project in New South Wales have now been approved.

    The company announced that Federal Minister for the Environment, Susan Ley, had awarded environmental consent for the coal giant to proceed with its $600 million extension plans.

    The extension project was approved under the Commonwealth’s Environment Protection and Biodiversity Conservation Act 1999, as per the release.

    Back in July, a Federal Court ordered the government to assess the potential harm young people could face from additional carbonisation as a result of the expansion, before approving Whitehaven’s plans.

    However, Ley’s ruling will ensure annual coal extraction will more than double to around 10 million tonnes at the Vickery project.

    Whitehaven “welcomed” the decision, which it stated was the “culmination of an exhaustive process” that took more than 5 years.

    This included a “period of public exhibition” from the NSW government. During this, 62% of the public submissions called for the project’s approval due to the “substantial local economic benefits” on offer.

    Whitehaven sees a “continuing role” for the high-quality coal that Vickery can produce. This is against a background of “record high coal prices and strong demand in seaborne markets”.

    “Major employment-generating investments will be essential” as Australia navigates its way out of the COVID-19 pandemic, Whitehaven concluded.

    Investors appear to agree with this sentiment and have pushed the Whitehaven Coal share price 3% higher following the release.

    Whitehaven Coal share price snapshot

    The Whitehaven Coal share price has gained steam over the last few months.

    It has posted a year-to-date return of 87%. It is also up 238% over the past 12 months. That’s well ahead of the S&P/ASX 200 index (ASX: XJO)’s gain of around 25% over the same time.

    The post Here’s why the Whitehaven Coal (ASX:WHC) share price is rising today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Whitehaven Coal right now?

    Before you consider Whitehaven Coal, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Whitehaven Coal wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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    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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  • Why this broker sees the Coles (ASX:COL) share price rising 15%

    A young boy pushing his friend in a shopping trolley race along the road.

    The Coles Group Ltd (ASX: COL) share price is pushing higher on Thursday afternoon.

    At the time of writing, the supermarket giant’s shares are up almost 1% to $17.15.

    This means Coles’ shares have now reduced their year to date decline to approximately 7%.

    Is the Coles share price good value?

    While the weakness in the Coles share price this year is disappointing for shareholders, it could be a buying opportunity for non-shareholders.

    According to a recent note out of Morgans, its analysts have an add rating and $19.80 price target on the company’s shares.

    Based on the current Coles share price, this suggests there is 15% upside over the next 12 months before dividends.

    And if we include dividends, the potential return gets even more attractive. Morgans is forecasting a fully franked 61 cents per share dividend in FY 2022. Including this, the company’s shares could provide a total return of 19% between now and this time next year.

    What did the broker say?

    Morgans was pleased with the company’s performance in FY 2021 and also with its solid start to the new financial year. This led the broker to upgrading its forecasts for FY 2022 and its price target on the Coles share price accordingly.

    In addition to this, its analysts like Coles due to its defensive qualities, strong market position, and robust balance sheet.

    The broker commented: “Following the better-than-expected FY21 result, we increase FY22F EBIT by 2% to A$1,852m while underlying NPAT rises by 4% to A$996m. COL is a defensive business with strong market positions and a healthy balance sheet. Trading on 24.6x FY22F PE and 3.3% yield we continue to see the stock as offering good value and maintain our Add rating.”

    The post Why this broker sees the Coles (ASX:COL) share price rising 15% appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Coles right now?

    Before you consider Coles, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coles wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. 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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  • Why the Healthia (ASX:HLA) share price is rocketing 10% today

    four excited doctors with their hands in the air

    Shares in Healthia Ltd (ASX: HLA) are surging today after the health-based company announced a new acquisition.

    At the time of writing, the Healthia share price is travelling north of 10% to $1.98 apiece.

    Healthia expands business portfolio

    Investors are fighting to get a hold of Healthia shares following the company’s latest addition to its growing portfolio.

    According to the release, Healthia advised it has entered into a binding agreement to acquire Rothwell Physiotherapy.

    A family-owned and operated clinic, Rothwell Physiotherapy is located on the north side of Brisbane. The facility, which services the wider Moreton Bay region, provides physiotherapy and exercise physiology for patients.

    The upfront consideration for Rothwell Physiotherapy will be a cash payment of $1.3 million. In addition, a contingent consideration of $0.32 million will be available if pre-defined earnings targets are achieved.

    The settlement of Rothwell Physiotherapy is conditional upon the transfer of property leases to Healthia and the approval of usual customary conditions.

    It’s expected that all conditions will be met and the acquisition completed on or before 30 November 2021.

    Management commentary

    Healthia managing director Wesley Coote said:

    We are very much looking forward to welcoming the team at Rothwell Physiotherapy into the Healthia family. The addition of Rothwell Physiotherapy is in line with Healthia’s stated growth strategy, and brings us one step closer to being the number one provider of physiotherapy services in Australia.

    We have a strong acquisition pipeline in place for this financial year, underpinned by industry participants placing greater value on the support and stability that a larger group such as Healthia, can provide.

    The company has projected the acquisition would contribute additional revenue of $2.13 million to Healthia. Furthermore, it estimates earnings before interest, tax, depreciation and amortisation (EBITDA) to come in around $0.36 million.

    Healthia share price summary

    Since listing on the ASX in September 2018, Healthia has grown its portfolio from 104 to 217 allied health businesses. Recent acquisitions include AllCare Physiotherapy, John Holme Optometry and Anytime Physio.

    The company’s shares are up 50% in 2021, and have more than doubled over the past 12 months.

    The post Why the Healthia (ASX:HLA) share price is rocketing 10% today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Healthia right now?

    Before you consider Healthia, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Healthia wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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  • Wesfarmers (ASX:WES) share price edges higher on sweetened API bid

    Pharmacist in white coat holding clipboard looking at medication stock on shelf

    The Wesfarmers Ltd (ASX: WES) share price is in the green on Thursday and currently changing hands at $56.80, up 0.26%.

    This follows news that the conglomerate has sweetened its offer to acquire Australian Pharmaceutical Industries Ltd (ASX: API) today.

    There’s a bit of history here, so let’s investigate further.

    What went down today?

    Wesfarmers revised its indicative proposal to acquire Australian Pharmaceuticals after the healthcare company rejected the original $1.38 per share proposal back in July.

    Wesfarmers wants to buy 100% of the company’s outstanding shares and is offering $1.55 per share under a revised scheme arrangement.

    This represents a 22% premium to the pharmaceutical company’s closing price on Wednesday. It’s also a 35% premium to its share price on 9 July when the original offer was made.

    The Australian Pharmaceuticals board intends to unanimously recommend the revised proposal, which is still subject to due diligence by Wesfarmers.

    The board will back the deal if no superior offers are made in the foreseeable future. The board will also seek the opinion of an independent expert, according to the release.

    If everything comes back clear, it will be all systems go to get the deal done, it appears.

    What’s next for the Wesfarmers share price?

    The deal is still subject to a number of conditions, including satisfactory completion of due diligence.

    They also need clearance from the Australian Competition and Consumer Commission (ACCC) and full backing from the API board.

    Wesfarmers shareholders don’t have to do anything right now. However, the next moves will no doubt have some impact on the Wesfarmers share price.

    The company has until 16 October to complete its due diligence. After that, both parties will enter into a binding offer if everything is satisfactory.

    That’s a key date for shareholders of both companies to keep pencilled in.

    Wesfarmers share price snapshot

    The Wesfarmers share price has had a choppy year to date but has gained 9.9% since January 1.

    Wesfarmers shares are up by about 25% over the past 12 months. This is in line with the return of the S&P/ASX 200 index (ASX: XJO) over the same time.

    The post Wesfarmers (ASX:WES) share price edges higher on sweetened API bid appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Wesfarmers right now?

    Before you consider Wesfarmers, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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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 owns shares of and has recommended Wesfarmers 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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  • Why the Austal (ASX:ASB) share price is lifting today

    A drawing of a rocket follows a chart up, indicating share price lift

    The Austal Limited (ASX: ASB) share price is finding its feet on Thursday. This follows the appointment of a new president of the company’s United States operations.

    In morning trade, shares in the defence vessel constructor are lurching higher. Currently, the Austal share price is fetching $1.76, up 4.45%. However, this is still a far cry from its position only a month ago. The company’s value has been stuck in a downtrend, resulting in a near 30% erosion over the past 4 weeks.

    Let’s take a look at the latest appointment, as well as some developments in the Australian military space.

    Fresh-ish eyes at the helm

    They say change can be as good as a holiday. Austal shareholders are likely hoping this holds true with the most recent change in the company’s ranks.

    According to its announcement, Austal’s board of directors have appointed Rusty Murgaugh as president of Austal USA. This decision was effective as of 9 September 2021, putting Murgaugh at the helm for a week already.

    The newly appointed president began his time at Austal in 2017 as chief financial officer. While the announcement marks a ‘newly’ appointed president, Murgaugh has been serving as interim president since February 2021. During this time, the now President led an operational expansion, adding steel shipbuilding to the company’s manufacturing capability.

    Commenting on the appointment, Austal CEO Paddy Gregg said:

    Rusty has overseen a number of significant, positive developments at Austal USA in a short period of time, including the start of construction of new infrastructure to enable steel shipbuilding; and new contracts that position the company exceptionally well for further growth. I congratulate him on his appointment and look forward to working with him to achieve further success in the US and international markets.

    New defence developments

    In other defence-related news, reports from ABC News state that Australia has announced plans to acquire a nuclear submarine fleet. Although there is no direct connection between Austal and this announcement, investors might be speculating over the potential ripple effects to defence shares. However, there is nothing set in stone to give surety for influencing the Austal share price.

    The move by Australia is part of its newly formed security partnership, known as AUKUS. As you might have guessed from the acronym, this involves Australia, the United Kingdom, and the United States.

    Speaking at the announcement, Australian Prime Minister Scott Morrison stated:

    Over the next 18 months, we will work together to seek to determine the best way forward to achieve this. This will include an intense examination of what we need to do to exercise our nuclear stewardship responsibilities here in Australia.

    Austal share price snapshot

    It has been a slobber-knocker of a year for the Austal share price. Over the past 12 months, the company’s shares have lost roughly 46% of their value. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has conjured up a 25.4% gain.

    As a result, Austal currently trades on a price-to-earnings (P/E) ratio of 7.72 times.

    The post Why the Austal (ASX:ASB) share price is lifting today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Austal right now?

    Before you consider Austal, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Austal wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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    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. owns shares of and has recommended Austal Limited. 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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  • ASX 200 resources giants lift despite plummeting iron ore price

    Female miner standing next to a haul truck in a large mining operation.

    ASX 200 giants are holding ground on Thursday despite the falling iron ore price.

    The price of iron ore has slipped to trade at US$124.16 per tonne today.

    That represents a slump of more than 23% since this time last month. It also marks a significant decline from the 52-week high of US$233 per tonne, which it hit in May.

    Interestingly, as the price of iron ore falls, the share prices of ASX 200 resources giants Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) are in the green. Fortescue Metals Group Ltd (ASX: FMG) has slipped slightly in early afternoon trading.

    Let’s take a look at what might be causing iron ore price to struggle.

    Why is the iron ore price lower today?

    The iron ore price struggled overnight as news from China seemingly dampened demand for the commodity.

    According to Reuters, China released a report stating its steel output reached its lowest point since March 2020 last month.

    China produced 83.24 million tonnes of steel in August, 4% less than it produced in July and 12% less than it did in the previous comparable period.

    As China is the world’s largest steel producer, it imports a huge proportion of the globe’s iron ore.

    In fact, according to the Minerals Council of Australia, around 80% of the iron ore exported from Australia goes to China.

    China’s lower steel production will likely impact demand for iron ore and it has seemingly already debased confidence in the commodity.

    However, China’s news hasn’t stifled the share prices of ASX 200 iron ore producers.

    How are ASX 200 resource giants performing?

    The BHP share price is tracking well today. The price of iron ore hasn’t notably affected its share price, which has gained 1.9% this morning. Investors can get their hands on a piece of BHP for $41.02.

    The Rio Tinto share price has recovered from a poor start to this morning’s trade. Its currently 0.57% higher than its previous close, trading for $105.24.

    After rebounding this morning, the Fortescue Metals share price has since slipped and is currently trading at $17.72, down 0.56%.

    The post ASX 200 resources giants lift despite plummeting iron ore price appeared first on The Motley Fool Australia.

    Should you invest $1,000 in BHP Group right now?

    Before you consider BHP Group, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP Group wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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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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  • Lotus Resources (ASX:LOT) share price jumps on rare earths update

    Woman sits in lotus position on the sand as another woman leapfrogs over her.

    The Lotus Resources Ltd (ASX: LOT) share price is advancing today following a positive update at the Milenje Hills Rare Earth Prospect.

    During morning trade, the mineral exploration company’s shares broke into uncharted territory, touching the 35-cent mark. However, investors decided to quickly take profit off the table, leading its shares lower.

    At the time of writing, the Lotus share price is up 1.59% to 32 cents apiece.

    What did Lotus announce?

    In a statement to the ASX, Lotus advised it has commenced exploration activities at the Milenje Hills Rare Earth Prospect in Malawi.

    The new work program follows the significant discovery of high-grade rare earth oxide (REO) material in February. Lotus noted that from the 22 mineralised samples collected, REOs came up to 16%, with critical REOs up to 3.4%.

    The 2021 program will see a number of works undertaken to determine the best path forward for Lotus. These include:

    • Extension of the geophysical dataset to include additional survey lines over the large anomaly identified in initial work;
    • Mapping in the broader area to define new mineralised zones;
    • Additional trenching with an excavator in new zones as well as deepening some of the previous trenches;
    • Reverse circulation (RC) drilling of up to 2,000 metres to follow up on selected anomalies and mineralised zones;
    • Mineralogical test work and sizing (expected to commence in Q4 FY21); and
    • Initial physical beneficiation tests (expected to commence in Q4 FY21).

    Lotus managing director Keith Bowes commented on the news possibly driving the Lotus share price:

    Whilst the company remains firmly focused on the development and recommencement of production at the Kayelekera Uranium Mine, we believe the Milenje Hills Prospect has the potential to add real value to the company for minimal expenditure.

    Clearly, the initial results encountered at Milenje Hills were extremely encouraging, given both the grade and assemblage of rare earth minerals. The current work program will provide us with an enhanced understanding of the overall potential of Milenje Hills, prior to determining the optimal path forward to realise value for shareholders.

    About the Lotus share price

    Up until late August, Lotus shares were treading mostly sideways over the 12-month period.

    However, in the past week, the Lotus share price has accelerated by around 50%. This has led its shares to record a year-to-date gain of 150% for investors.

    The post Lotus Resources (ASX:LOT) share price jumps on rare earths update appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Lotus right now?

    Before you consider Lotus, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lotus wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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    The author Aaron Teboneras 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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  • ASX uranium shares boom to multi-year highs, bull market is just getting started: analyst

    bull market encapsulated by bull running up a rising stock market price

    ASX uranium shares are going nuclear after uranium spot prices jumped to 9-year highs of US$48/lb according to S&P Global Platts. A month ago, uranium was fetching for just ~US$30/lb.

    ASX uranium shares going parabolic

    The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) has surged 115% to fresh 9-year highs in the past month.

    The gains have tricked all the way down to small cap explorers such as 92 Energy Ltd (ASX: 92E) and Peninsula Energy Ltd (ASX: PEN), which have both more than doubled since August.

    Even after a 60% jump in uranium prices, some analysts think that the uranium market has more legs to run.

    What’s driving uranium?

    The recent jump in ASX uranium shares and spot prices has largely been driven by Sprott Inc’s Physical Uranium Trust, listed on Canada’s Toronto stock exchange.

    The fund has been actively buying physical uranium off the spot market, driving demand and tightening supply.

    Kitco reported that the fund has bought 24 million pounds of uranium since mid-August, representing “about 14% of global reactor consumption”.

    Kitco also highlighted that the “new demand in the marketplace has attracted new momentum players to the market, including retail investors from Reddit’s WallStreetBets, a popular financial discussion forum.”

    Uranium market is “just leaving the station”

    According to Kitco, some analysts have likened the uranium market as “a freight train that is just leaving the station as growing demand in a relatively tight market sparks a surge in prices.”

    In an interview with Kitco News, Waaren Irwin, founder of Rosseau Asset Management said “the supply and demand outlook for uranium looked fantastic before Sprott came into the market.”

    “The trust has come in and moved the inevitable rally forward a year or two.”

    Irwin said that uranium plays into the global shift towards renewables and green energy. And that uranium demand will continue to grow on the backdrop of tight supply.

    The post ASX uranium shares boom to multi-year highs, bull market is just getting started: analyst appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

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  • Why the Zoom2u (ASX:Z2U) share price is rocketing 28% higher today

    high share price

    It has been another positive day for the Zoom2u Technologies Ltd (ASX: Z2U) share price on Thursday.

    The recently listed delivery management software provider’s shares jumped 28% to a record high of 83.5 cents this morning.

    When the Zoom2u share price reached that level, it meant it had gained almost 320% since its IPO last Friday.

    Why is the Zoom2u share price storming higher?

    The catalyst for the rise in the Zoom2u share price today has been the release of an investor update.

    According to the release, the company has signed its first enterprise customer for its Locate2u platform, Amart Furniture.

    Zoom2u will provide Amart with access to the Locate2u software as a service (SaaS) technology platform for an initial 24-month term. After which, Amart will have the option to extend the term for a further two, 12-month periods.

    Either party may terminate this agreement, with or without cause, upon 90 days’ written notice.

    The release notes that Locate2u will enable Amart’s drivers to provide efficient and transparent delivery of products directly to the retailer’s customers.

    However, it is worth noting that the revenue derived from the Amart agreement is not expected to have a material impact on the financial performance of the company in FY 2022. Though, that clearly hasn’t stopped investors bidding the Zoom2u share price materially higher today.

    Anything else?

    Also giving the Zoom2u share price a lift was news that it has entered into an agreement with Bing Lee for access to the Zoom2u Platform.

    Bing Lee will use the platform to enable the fast delivery of selected goods to consumers.

    The release notes that the agreement is based on Zoom2u’s standard customer contract and does not have a termination date. Zoom2u will receive standard transaction fees for each delivery completed for Bing Lee. It also stressed that there are no minimum delivery quantities pursuant to this agreement, nor is it an exclusive arrangement.

    Finally, management advised that FY 2022 has started strongly. And while it acknowledges that lockdowns are supporting its growth, it remains “confident that it will continue to drive growth, delivering sustained operational performance for shareholders in FY22 and beyond.”

    The post Why the Zoom2u (ASX:Z2U) share price is rocketing 28% higher today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Zoom2u right now?

    Before you consider Zoom2u, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zoom2u wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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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. 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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  • Why the Jupiter Energy (ASX:JPR) share price more than doubled today

    Jupiter Energy share price Businessman doing superman and rocketing into the sky

    The Jupiter Energy Limited (ASX: JPR) share price surged today after it signed a key infrastructure deal.

    Such announcements don’t usually trigger such excitement among ASX investors. But the agreement will allow the junior oil explorer to unlock value in its Kazakh assets.

    This explains the 123% surge in the Jupiter Energy share price to a more than one-year high of 7.8 cents at the time of writing.

    Jupiter Energy share price surges on infrastructure deal

    The binding framework agreement was signed with Kazakh registered Sleipnir Technologies. It sets a timetable for the development and lodgement of a detailed project development plan that will provide Jupiter Energy with the appropriate infrastructure to achieve 100% gas utilisation on the Akkar North (East Block), Akkar East and West Zhetybai oilfields.

    Under Kazakh law, oil and gas wells can only be granted a Commercial Production License if they have the right infrastructure in place. Then only can the well operator sell to international markets.

    Current output limited by license restrictions

    Currently, Jupiter Energy can only sell oil to the Kazakhstan domestic market as it operates under a Trial Production Licence or during the “Preparatory Period” as it transitions to a full commercial license.

    “During the ‘Preparatory Period’, Jupiter is able to produce from any well located on a field with an approved Commercial Production Licence without having the requisite gas utilisation infrastructure in place, only if all excess gas that is produced during production is used on the field for power, heating and the like,” said Jupiter Energy.

    “Jupiter’s production is therefore already currently constrained on the Akkar North (East Block) and Akkar East fields as both fields are operating under ‘Preparatory  Period’ restrictions. 

    “The West Zhetybai field has just commenced the approval process to transition from Trial Production to Commercial Production and when this approval process is complete, the West Zhetybai field will return to production, also under ‘Preparatory Period’ restrictions, until the appropriate 100% gas utilisation infrastructure is in place.”

    Production output set to increase

    The Akkar East and Akkar North (East Block) fields current produce around 225 barrels of oil a day. When the West Zhetybai field returns to production, the cumulative daily output from the three oilfields should increase to 340 barrels per day.

    But following the successful commissioning of the gas utilisation infrastructure, Jupiter Energy should achieve cumulative daily production from the current wells of circa 700 barrels per day.

    Additional oil production could then come from future, successful, drilling on the three fields.

    Jupiter Energy and Sleipnir aim to lodge the project development plan with the the Kazakh Ministry of Energy by early 1Q 2022.

    The big rise in the Jupiter Energy share price on Thursday pushes its one-year gain to 30%.

    The post Why the Jupiter Energy (ASX:JPR) share price more than doubled today appeared first on The Motley Fool Australia.

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    Motley Fool contributor Brendon Lau 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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