The Peninsula Energy Ltd (ASX: PEN) share price has bolted out of the gates in today’s session.

Shares in the uranium miner have stormed 20.45%, reaching 26.5 cents in late morning trade.  

Let’s take a look at what’s fuelling the Peninsula Energy share price.  

Uranium price spurs on share prices

Peninsula Energy has not released any price-sensitive news to explain today’s bullish price action.

However, shares in the uranium miner have propelled higher thanks to a single catalyst.

After being in a prolonged bear market, uranium spot prices have soared in the past month.

According to Cameco, uranium prices have soared to 6-year highs.

Strength in the underlying commodity has helped fuel the Peninsula Energy share price today and in the past few weeks.

The major catalyst behind the soaring uranium spot price has been the aggressive buying of the world’s largest uranium fund, Sprott Physical Uranium Trust.

More on Peninsula Energy

Apart from the soaring uranium price, Peninsula Energy has also provided updates on its flagship Lance Uranium Projects in Wyoming, USA.

The company has continued MU1A low-pH field demonstrations at the project for more than a year.

Peninsula Energy has noted that field operations continue to run consistently with target flow and solution chemistry achieved.

In addition, the company purchased 300,000 pounds of uranium at a price of US$31.35 per pound following a $15 million capital raise earlier this year.

Snapshot of the Peninsula share price

Peninsula Energy’s 100% owned Lance Projects is the only US-based uranium project using a low pH, in-situ recovery (ISR).

To ‘decarbonise’ the country’s power sector, the US Department of Energy has allocated US$75 million towards the establishment of a national strategic uranium reserve.

As a result, Peninsula Energy is in a position to potentially benefit from various initiatives of the US government.

Peninsula Energy currently has a number of long-term sales contracts in place, extending to 2030.

The Peninsula Energy share price bolted out of the blocks in 2021, hitting 18 cents in mid-February.

Since then, the company’s share price has struggled to gain traction until recently.

Since the start of September, the Peninsula Energy share price has soared more than 60%.

At the time of writing, shares in Peninsula Energy are trading at 26.5 cents, a price that hasn’t been seen since July 2019.

The post Peninsula Energy (ASX:PEN) share price rockets 20% to 2-year high appeared first on The Motley Fool Australia.

More reading

• ASX uranium shares are booming: What’s all the hype about?
• Peninsula Energy (ASX:PEN) share price jumps to 2-year highs
• Guess which sector last week’s top performing ASX shares come from
• ASX uranium shares are booming this week. Here’s why.

Motley Fool contributor Nikhil Gangaram 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 Lotus Resource Ltd (ASX: LOT) share price has jumped out of the starting blocks this week and landed firmly in the green in early trade on Monday.

Lotus shares are now exchanging hands at 27.5 cents apiece, an 14.58% gain from the open after racing up 18% earlier this morning.

While the S&P/ASX 200 Index (ASX: XJO) has slipped 2.3% into the red over the last month, Lotus shares are 72% in the green.

There is a number of catalysts in Lotus’ growth narrative that have led us to this point – let’s cover them now.

Quick recap on Lotus Resources

Lotus is in the business of exploration and development of minerals and has projects in both Malawi and Australia.

Its main interest is its 85% interest in the Kayelekera Uranium project in Malawi. The company’s recent studies have demonstrated this site has the potential to be a uranium project that can recommence production in the future.

At the time of writing, Lotus has a market capitalisation of $263 million.

What tailwinds have been driving the Lotus Resources share price?

To understand the picture of what’s behind Lotus Resources shares, we have to zoom out a few months.

Back in April, Lotus confirmed the divestment of its Hylea Cobalt project to Sunrise Energy Metals Limited (ASX: SRL).

The sale was for a $2.5 million cash and share consideration for which the company realised a blend of $1 million in cash and $1.5 million Sunrise shares.

Lotus then announced “highly encouraging” results from its “ore sorting testwork” at its Kayelekera Project.

This kind of testing is not essential for production, however, has the “potential to materially improve the project”.

In July, the company advised that testwork results from ore sorting had “exceeded expectations”, with “uranium grades of the ore increasing by up to 100%” when compared to “the feed sample”.

Finally, in late August, Lotus advised that its “second phase of ore sorting testwork” had “improved the initial strong results” announced above.

Specifically, it stated that “recoveries also improved to 92%” alongside the increase to feed sample in the first ore sorting testwork.

From here, the company expects to start a feasibility study using the results from its ore sorting regime.

Lotus Resources share price snapshot

The Lotus Resources share price has climbed 120% over this year to date, extending the return over the last 12 months to 175%.

These results have far outpaced the S&P/ASX 200 Index (ASX: XJO)’s gain of around 25% over the past 12 months.

The post Why the Lotus Resources (ASX:LOT) share price is jumping 18% on Monday appeared first on The Motley Fool Australia.

More reading

• Are you ready for the crash
• Hazer (ASX:HZR) share price slides 11% following capital raise update
• Pilbara Minerals (ASX:PLS) share price lifts following bullish broker note
• Here are some of the ASX IPOs happening this week
• What to watch at the Telstra (ASX:TLS) Strategy for the Future event this week

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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Are you ready for the crash?

Are you ready to see 10%… 25%… or 40% of your portfolio vanish in the proverbial puff of smoke?

Are you ready to question if you really should be investing, anyway?

If you have the stomach for this?

If your father/sister/neighbour was right when they said this stock market thing was a casino and Just. Too. Risky.?

Are you ready?

I hope so.

No, not because I think a crash is coming.

But because I know it is.

I’ve been doing this a very long time now.

I’ve invested through a lot of different markets.

I’ve lived through even more.

Though it pains me to admit it, there are a decent number of people reading this who don’t even know about Black Monday, in October 1987, when the world’s stock markets absolutely tanked.

Let me share part of the Wikipedia description of that day:

“All of the twenty-three major world markets experienced a sharp decline in October 1987. When measured in United States dollars, eight markets declined by 20 to 29%, three by 30 to 39% (Malaysia, Mexico and New Zealand), and three by more than 40% (Hong Kong, Australia and Singapore).”

Yep. Really.

Though I wasn’t an active investor that day, it’s seared into my mind.

Maybe you’re old enough to remember the dot.com crash.

Again, from Wikipedia:

“On Friday March 10, 2000, the NASDAQ Composite stock market index peaked at 5,048.62.”

…

“By the end of the stock market downturn of 2002, stocks had lost $5 trillion in market capitalization since the peak. At its trough on October 9, 2002, the NASDAQ-100 had dropped to 1,114, down 78% from its peak.”

No, it wasn’t the absolute vertigo-inducing one-day fall of 1987.

But the impact — over 18 confidence-sapping and portfolio-draining months — was twice as big.

Four dollars in five had evaporated.

Fast forward by the best part of a decade, to the GFC. Here’s how Wikipedia describes the impact of the Global Financial Crisis:

“By March 6, 2009 the [US Dow Jones stock market average] had dropped 54% to 6,469 from its peak of 14,164 on October 9, 2007, over a span of 17 months, before beginning to recover”

And unless you’ve been living under a rock, you’ll know the story of the COVID crash.

The S&P/ASX 200 Index (ASX: XJO) fell by 37% in just over a month, between mid-February and mid-March, including its largest single-day percentage drop since, yep, 1987.

Are you ready for a crash, yet?

I hope so.

Crashes can be brutal one-day affairs.

Or they can be drawn-out, 18-month grinding miseries.

They can feel like a sharp kick in the guts.

Or a headache that just lingers.

They sap your confidence. Your will.

And your bank balance.

A crash is a brutal, menacing mongrel of a thing.

So I hope you’re ready.

Because one is coming.

And you need to be prepared.

You need to be financially prepared: Don’t invest any money you’ll need in the next three to five years. If your $100,000 portfolio becomes $75,000, $50,000 or $40,000 overnight, you don’t want to be a forced seller.

You need to be emotionally prepared. It is going to hurt like hell. You will question yourself, and you’ll hate me. You’ll remember those doubts you had, and wish you’d taken your own advice not to get started investing. Or to sell last week, last month or last year, when you thought you should have.

You’ll want to sell everything, just to stop the pain. The pain of looking at that poor, beaten up share portfolio. The pain of even more losses in the days, weeks or months ahead.

Worse, a few of you will be forced to sell — maybe even everything — because you didn’t listen; unwisely borrowing to buy shares, and the bank will ‘call in’ the loan.

Now, are you prepared?

Because a crash is coming.

And it’s time to get prepared.

And here’s what I think you should do:

Buy shares.

What?

Didn’t I just say…

And then I said…

And the stories about…

Yep.

All true.

Worse, there are people out there making predictions of just how soon that crash will come.

And how bad it’ll be.

And I still want you to buy?

Yep.

See, investing isn’t about avoiding the crashes.

Oh, I would if I could.

If I could know when the crash was coming.

And how bad it’d be.

And how long it’d last.

Alas, I’m not blessed with such foresight. Neither, unfortunately, are you.

And those people who seem to ‘know’ a crash is coming?

They’ve ‘known’ it for years.

It just never comes.

Well, maybe not never.

But just like the broken clock that is still right twice a day, being seldom right is not only not very clever… it’s also useless.

See, here’s the thing:

That 87 crash?

The market finished 1987 higher than it started!

Says Wiki: “The [Dow Jones] gained 0.6% during calendar year 1987.”

So, if you’d been told to sell all of your shares on December 31, 1986 because a crash was coming… you’d have actually missed out on making a (small) gain.

And the market went higher after that.

The stock market is higher than the pre-dot.com peak.

Than the pre-GFC peak.

Than the pre-COVID peak.

In other words, even if those stock market Nostradamus’ had been right every one of those times (and not been wrong the other 54 times!), following their advice and selling everything would actually have cost you money.

(Oh sure, you can tell yourself you would have bought back in after each crash. But the number of really smart, sensible people who missed the post-COVID-crash recovery is astonishing. It’s easy to believe you’ll be different… but it’s bloody hard to do. And the ASX had mad back most of its losses within three months — while COVID cases were getting worse, not better.)

And I’ll tell you now: I did not forecast the COVID crash. I did not expect its suddenness or its depth. I did not pick the speed or size of the recovery.

But you know what I did?

I bought shares.

During a pandemic?

During a crash?

Am I freaking nuts?

Yes, yes and no, respectively.

Instead, I was prepared.

It wasn’t my first rodeo.

And, while I had some personal experience under my belt, I was also, in the words of Sir Isaac Newton, ‘standing on the shoulders of giants’.

I was prepared.

I knew I wouldn’t need to raid my portfolio to meet my living costs, meaning I wouldn’t be a ‘forced seller’ during a market dip.

I had girded my loins for the fact that a crash was coming. No, I didn’t know when, where, why, or how bad… I just knew that history is full of crashes, and another one was almost as certain as death and taxes.

I knew it could — would — be bad. I knew my portfolio would look sick. That I would doubt myself. That, even though I knew these things, I’d still worry.

But, like Odysseus, I (metaphorically, in my case) tied myself to the mast, lest the Sirens call me onto the rocks.

You see, both those who forecast crashes — with regular, inaccurate, monotony — and our innate desire to avoid (more) pain, are the stock market Sirens. (So, by the way, are those promising you get-rich-quick investments, but that’s another article!)

And — this is important, because you need to know the track record of those who offer you investment advice — I told our members and readers to do precisely the same.

Yes, while others panicked.

While they predicted doom, and ran around like Chicken Little.

Not because I was a better forecaster, by the way.

In fact, they very opposite.

I knew I didn’t — and couldn’t — know.

So I didn’t waste time (and money) trying to pretend to be smarter than the average bear.

I just kept investing, confident that the long term returns would justify my actions.

And I encouraged you to do the same.

And in future?

You — we — need to lash ourselves to our own investment masts.

I can’t speak for you, but I’m planning to add regularly to my investments every payday between here and retirement.

At market lows.

At market highs.

(Neither of which I’ll know at the time because you can only know those things in hindsight.)

During booms.

During busts.

And, if history is any guide, some self-appointed market gurus will keep making predictions of doom the whole time.

And, if history is any guide, the world’s stock markets will likely continue to rise, despite — not in the absence of — periodic crashes.

So, I hope you’re ready for the crash.

I hope that by being ready, it won’t take you by surprise, and you won’t do anything silly.

I hope that forewarned is forearmed.

And because we can’t know when it’ll come, how bad it’ll be and — perhaps more importantly — how far the market will rise before any crash arrives, I hope you won’t let predictions of doom scare you away.

I hope you’ll invest — regularly — anyway.

Fool on!

The post Are you ready for the crash appeared first on The Motley Fool Australia.

More reading

• Hazer (ASX:HZR) share price slides 11% following capital raise update
• Pilbara Minerals (ASX:PLS) share price lifts following bullish broker note
• Here are some of the ASX IPOs happening this week
• What to watch at the Telstra (ASX:TLS) Strategy for the Future event this week
• The Webjet (ASX:WEB) share price is nearing its 52-week high. Is now the time to buy?

Motley Fool contributor Scott Phillips 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 Hazer Group Ltd (ASX: HZR) share price is falling wayside following an update on its capital raising efforts.

At the time of writing, the hydrogen producer’s shares are down a sizeable 11.16% to 95.5 cents.

What did Hazer announce?

According to its announcement, Hazer advised it has successfully completed its placement, raising gross proceeds of $7 million.

The offer received strong interest from new institutional and sophisticated investors, as well as the ongoing support of existing shareholders.

As a result, the company will issue 7.6 million new ordinary shares at a price of 92 cents apiece. This represents a discount of 14.42% to the last closing Hazer share price of $1.075 last Wednesday.

The settlement of the placement is expected to occur on 17 September, with issue and trading available on 20 September.

In addition, Hazer also invited retail investors to participate in a $7 million Share Purchase Plan (SPP). This will be offered on the same terms as the placement.

The SPP will open on 17 September and close the following month on 15 October.

Monies raised from both capital raises will be used towards expanding business development activities for the Hazer Commercial Demonstration Project (CDP). Furthermore, the company will fund ongoing research and development programs to enhance its graphite advanced carbon material.

Hazer chair Tim Goldsmith commented:

We have an exciting program of activities ahead for the Company in 2021 and 2022 with the completion of the Hazer Commercial Demonstration Project (CDP) in Q1 2022. This remains a key milestone to advance Hazer into the next stage of our development.

There is enormous demand for emerging technologies such as the Hazer Process and we are committed to ensuring we position Hazer to capture this. Our business development activities and R&D Program are both targeted to meet this growing global demand.

About the Hazer share price

Over the last 12 months, Hazer shares have accelerated to post a 151% gain, with year-to-date up 22%. Interest in novel graphite and hydrogen production technology has picked up considerably in recent times, leading to investors buying.

Hazer presides a market capitalisation of about $142 million and has approximately 145 million shares on its books.

The post Hazer (ASX:HZR) share price slides 11% following capital raise update appeared first on The Motley Fool Australia.

More reading

• A closer look at how ASX hydrogen shares are faring in 2021?
• Why is the Hazer (ASX:HZR) share price frozen?
• Hazer Group (ASX:HZR) share price sinks 6% as after-tax loss widens in FY21

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 Pilbara Minerals Ltd (ASX: PLS) share price has started the week in a positive fashion.

In morning trade, the lithium miner’s shares are up over 4% to $2.14.

This latest gain means Pilbara Minerals’ shares are now up 146% since the start of the year.

Why is the Pilbara Minerals share price pushing higher again?

The Pilbara Minerals share price has been pushing higher on Monday despite there being no news out of the company.

However, potentially giving its shares a boost is increasingly positive sentiment in the battery materials sector and a bullish broker note out of Macquarie Group Ltd (ASX: MQG) last week.

In respect to the latter, according to the note, the broker has an outperform rating and $2.70 price target on the company’s shares.

Based on the latest Pilbara Minerals share price, this implies potential upside of 26% over the next 12 months.

Why is Macquarie bullish?

Macquarie is bullish on the Pilbara Minerals share price due to its positive view on lithium demand and prices and its belief that the company is well-placed to benefit thanks to its growing production.

The broker believes that the company’s staged development of its Pilgan and Ngungaju operations can support a seven-year production growth rate of around 20% per annum.

It also notes that last week the company upgraded its resource estimate after incorporating the Ngungaju project. Pilbara Minerals has increased its total Measured, Indicated and Inferred Resource by 39% to 308.9 million tonnes.

This was larger than what the broker was expecting and reinforces the Pilgangoora Lithium-Tantalum Project’s position as the world’s premier hard rock lithium operation.

All in all, Pilbara Minerals’ shares may have smashed the market this year, but this leading broker still believes they can keep rising from here.

The post Pilbara Minerals share price lifts following bullish broker note appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Here are the 3 heaviest traded ASX 200 shares this Friday
• Here are the 3 heaviest trading ASX 200 shares on Thursday
• Is the party only just getting started for ASX lithium shares?
• Why these seasoned investors are watching the Pilbara (ASX:PLS) share price

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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ASX Initial Public Offerings (IPOs) are the talk of the town in 2021 and market watchers interested in debuts have plenty to look forward to this week.

There are a massive 9 floats scheduled to happen this week. Here are the biggest ASX listings to look out for.

ASX IPOs to watch this week

Following are the top 5 ASX IPOs, by anticipated market capitalisation, expected to occur this week.

Legacy Minerals Holdings Limited’s (ASX: LGM) IPO will be today

Legacy Minerals is a copper and gold explorer with 5 prospective projects in NSW’s Lachlan Fold Belt.

Under its prospectus, investors could get their hands on Legacy shares for 20 cents each.

It hopes to have a market capitalisation of around $16.2 million.

Legacy’s float will happen at 11:30 this morning.

Way 2 VAT Ltd (ASX: W2V)

Way 2 Vat is the tech company behind the WV2 platform, an application that can reclaim value added tax (VAT) using artificial intelligence.

The platform has launched in Israel, Europe, and the Asia-Pacific region. It brought in US$1.03 million of revenue over the 12 months ended 31 December 2020.

Way 2 VAT’s IPO will hit the ASX on Friday.

Investors in its prospectus could get shares in the company for 20 cents apiece, giving it an expected market capitalisation of $29.7 million.

Copper Search Limited (ASX: CUS)

Copper Search is a mineral exploration and development company focused on the Gawler Craton Region in South Australia. It has 10 mineral exploration licences, covering 6,673 square kilometres.

The company’s 4 main project areas are the Peake and Denison, Mt Arthur, Ruby Hill, and Billa Kalina projects. It also has another potential project, Titan North.

Under its prospectus, Copper Search’s shares were going for 35 cents apiece, giving it an expected market capitalisation of $28.8 million.

Its ASX IPO will go ahead on Wednesday.

Koonenberry Gold Limited (ASX: KNB)

Koonenberry is a gold exploration company that owns the Koonenberry Gold Project.

The project is on a major gold nugget field that, until recently, had limited land access.

Additionally, the company’s wholly-owned subsidiary, Lasseter Gold Pty Ltd, owns 12 tenements associated with the Koonenberry Gold Project.

The company’s shares went for 20 cents apiece during its prospectus. It’s forecast to IPO on the ASX with a market capitalisation of between $$27.7 and $29.7 million.

The company is expected to list on Friday.

Pearl Gull Iron Limited (ASX: PLG)

Pearl Gull is an up and coming iron ore producer with a mining lease that covers a proportion of Western Australia’s Cockatoo Island.

It is exploring the island for high-grade iron ore, with drilling currently underway.

It expects the results from its initial drilling campaign before the end of the year, subject to laboratory assay turnaround times.

After offering shares for 20 cents each in its prospectus, Pearl Gull expects to debut on the ASX with a market capitalisation of $20.5 million.

Pearl Gull will be hitting the ASX on Thursday.

Other ASX IPOs happening this week

If those 5 floats aren’t enough for you, here’s what else will be hitting the ASX this week:

Heavy Minerals Limited (ASX: HVY) will be debuting on the ASX tomorrow. Its shares went for 20 cents apiece in its prospectus and it expects a market capitalisation of $10.2 million.

Dalaroo Metals Ltd (ASX: DAL) will hit the market on Wednesday, with an expected market capitalisation of $10.8 million. Its prospectus offer price was 20 cents.

Star Minerals ­Limited (ASX: SMS), which offered its shares for 20 cent under its prospectus, will hit the market on Thursday.

Finally, SSH Group Ltd (ASX: SSH) is expected to debut on Friday with a value of $11.9 million after offering its shares for 20 cents apiece in its prospectus.  

The post Here are some of the ASX IPOs happening this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

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

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The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch very carefully this week.

This is because on Thursday the telco giant is holding its eagerly anticipated Strategy for the Future Investor Day event.

What should you watch out for?

Ahead of the event, the team at Goldman Sachs has listed a few things that it believes could have an impact on the Telstra share price.

The first thing Goldman thinks investors should look out for are its earnings targets. It commented: “We expect a range of earnings targets to be provided, which could include: (1) Narrowing FY23 EBITDA aspirations to $7.5 to $7.9bn (GSe $7.7bn, Visible Alpha Consensus Data $7.5bn); (2) A new cost-out program to be quantified (GSe A$500mn+); (3) Group revenue/earnings targets for FY22-25 to be provided (i.e. low single digit rev growth vs. GSe +1.7% p.a.).”

The broker also expects some commentary around its dividend policy post its T22 strategy. Goldman said: “The ongoing debate around its post T22 dividend policy will be addressed. We expect a preference for franked dividends and buybacks to remain (over un-franked).”

Another subject that could boost the Telstra share price is the company’s plan with its infrastructure assets. It explained: “We expect an update to be provided [on InfraCo], but this will be more strategy focused rather than incorporating specific commentary around the potential monetisation, given the corporate restructure is yet to be approved (vote by year-end).

Finally, Goldman Sachs believes there could be commentary around the company’s leadership post its T22 plan. The broker commented: “With current CEO Andrew Penn in his 7th year as CEO of Telstra, we believe commentary around the company’s leadership post T22 could be provided.”

Is the Telstra share price good value?

According to the note, Goldman Sachs remains bullish on the Telstra share price.

In fact, not only have its analysts reiterated their buy rating, but they have lifted their price target to $4.40.

Based on the current Telstra share price of $3.86, this implies potential upside of 14% over the next 12 months.

Furthermore, this potential return stretches to over 18% if you include the 16 cents per share fully franked dividend the broker is forecasting in FY 2022.

The post What to watch at the Telstra (ASX:TLS) Strategy for the Future event this week appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
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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 Telstra Corporation 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 Webjet Limited (ASX: WEB) share price has taken off, almost topping its 52-week high of $6.33 achieved in March. The online agent provided investors with a trading update that indicated its business is on the mend.

At the time of writing, Webjet shares are travelling slightly lower to $5.98, down 0.5%.

What’s driving the Webjet share price higher?

Webjet revealed on 31 August that its post-pandemic strategy is delivering results, with its WebBeds business profitable since July 2021. As travel restrictions have begun to ease across North America and Europe, strong demand has followed.

The company’s OTA (online travel agency) bookings outperformed the market by 1.6 times, increasing market share despite border closures. Webjet noted it is ready to benefit from domestic-focused tourism around the world. What will this mean for Webjet shares?

As a result, the business expects to become cash-flow positive within the first half of FY22.

Supporting the company’s bottom line, its cost base is projected to be 20% lower with significant cash reserves available.

The vaccination rollouts in the United States and Europe are well advanced, with both economies reopening. The forecast for Australia and New Zealand markets are that they’ll have a positive impact in the early 2022 calendar year.

So, are Webjet shares a buy?

Is now the time to buy?

Goldman Sachs released a broker note in late August following the company’s business update to the ASX.

The multinational investment bank noted the recent update reconfirms the view of a strong recovery in the travel sector.

However, there are risks that could derail the company’s plans. They included a delay in industry recovery, increased competition in the OTA segment, and impact of innovative bedbank models.

Nonetheless, Goldman Sachs placed a buy rating on the company’s shares with a 12-month price target of $6.40. Based on the current Webjet share price, this implies an upside of around 7%.

Webjet commands a market capitalisation of roughly $2.2 billion, and has a price-to-earnings (P/E) ratio of 15.46.

The post The Webjet (ASX:WEB) share price is nearing its 52-week high. Is now the time to buy? 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 owns shares of and has recommended Webjet Ltd. 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 embattled Nuix Ltd (ASX: NXL) share price is struggling to catch a bid on Monday even after the company announced a new acquisition.

At the time of writing, the Nuix share price is down 2.99% to $2.60.

Nuix share price lower despite US acquisition

Nuix has entered into an agreement to acquire all the shares in natural language processing (NLP) company Topos.

Topos’ software has been described as an “early-stage platform” that helps reduce workload by surfacing relevant or risky content faster.

The company’s technology is said to be “already able to automate accurate analysis and classification of complex content in documents, electronic communications, and social media”.

“NLP models can be defined directly by business users through the no-code user interface, reducing the time required to identify risk in an organisation’s data. Topos is then also able to present the risk assessment of confidential, sensitive and regulated content in user-friendly dashboards.”

Nuix highlights a number of benefits to the acquisition, citing that it can “optimise the technology to benefit its Investigations, eDiscovery and GRC (Governance, Risk and Compliance) customers, further enhancing the unstructured data processing power of the Nuix Engine.”

The initial cost of the acquisition is US$5 million on financial close which is expected in September 2021. There is the potential for a further US$20 million. This would be comprised of US$18.5 million in cash to the seller of the shares in Topos and up to US$1.5 million in performance rights payable over 30 months.

Management commentary

Nuix CEO Rod Vawdrey commented on the acquisition, saying:

Topos will strengthen Nuix’s product offering by helping customers get to relevant data even faster. The potential for user-friendly dashboards and for users to easily customise the software to their specific needs also reflects Nuix’s focus on empowering our customers to search through unstructured data at speed and scale. We look forward to Christopher Stephenson [Topos CEO] and his talented team joining Nuix.

Nuix share price snapshot

The Nuix share price is down 68% year-to-date after missing prospectus forecasts and a looming legal case from the company’s ex-CEO.

Nuix shares seem to have largely digested the bad news, trading mostly sideways since the beginning of June.

The post Nuix (ASX:NXL) share price falls despite acquisition news appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. 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 Afterpay Ltd (ASX: APT) share price has been a remarkable performer in recent times. In fact, ‘diamond hands’ shareholders have been rewarded with a gargantuan 900% rally since the crash of March 2020.

However, the rapid ascension turned into a volatile rollercoaster this year. On a year-to-date basis, the Afterpay share price is 6.3% above its 2021 starting position. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has gained 10.8% over the same period, outperforming the high-flying buy now pay later (BNPL) company.

Now that Afterpay is expected to hitch a ride with US-based payments giant Square Inc (NYSE: SQ), two investing experts have shared their thoughts on whether Afterpay is worth a spot in the portfolio.

Validation a good sign for Afterpay shares

It has been a market darling for much of its existence since its initial public offering (IPO) in 2017. In the space of four short years, Afterpay has delivered 4,187% in returns to investors. That works out to be a compound annual growth rate (CAGR) of 142.1%.

Now that it looks set to be acquired by Square, two experts have weighed in on whether Afterpay shares are still desirable at their current price. These experienced investors are Chris Stott from 1851 Capital and James Gerrish from Market Matters.

Firstly, Mr Stott pointed out the commendable leadership from Nick Molnar and Anthony Eisen, acknowledging the achievement of securing a deal with Square. Additionally, Stott considered Afterpay shares to be a hold at the moment, stating:

We would say people should hold, and then roll into the Square offer. Hold the Square shares if you can. We think certainly with them as a partner now that they’ve got significant capital fire-power behind them to really drive their next level of growth over the medium to longer term.

Building on this, Mr Gerrish also rated Afterpay shares a hold at this stage. Furthermore, the portfolio manager highlighted recent events that serve as validation for the BNPL sector. For instance, Amazon.com, Inc. (NASDAQ: AMZN) partnering with US-based BNPL company Affirm Holdings Inc (NASDAQ: AFRM) to offer payment instalments to the e-commerce giant’s checkout.

While Gerrish remained positive on Afterpay shares, he shared his view that Zip Co Ltd (ASX: Z1P) could have more upside in the short term.

Integrations galore

As Gerrish points out, the next year will involve plenty of integration between Afterpay and Square. One such integration involves Square’s iconic ‘Cash App’.

According to a release, Afterpay consumers will be able to manage their instalments and repayments directly within the Cash App. This will open the door to roughly 10 million monthly active users of Square’s app for Afterpay.

The post Afterpay (ASX:APT) shares are up 900% since the crash. These experts still think they’re worth holding appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Affirm Holdings, Inc., Amazon, Square, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Amazon. 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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