The S&P/ASX 200 Index (ASX: XJO) is having a pretty decent start to the week. At the time of writing, the ASX 200 is up 0.3% to 7,032 points. But one ASX share that isn’t contributing to this rise is Telstra Corporation Ltd (ASX: TLS). Telstra shares have gone backwards today, down 0.58% to $3.43 a share. At this level, the ASX telco is now down more than 3% from the new 52-week high that it reached back on 5 May. In saying that, the Telstra share price is still up around 14% year to date, so shareholders can’t complain too much.

Even so, it does beg the question: why is Telstra falling today when the ASX 200 is rising?

Well, one possible reason could be a squabble over the National Broadband Network (NBN). According to a report in the Australian Financial Review (AFR), the NBN has called an “emergency meeting” today with internet providers. These include Telstra, as well as the Singtel-owned Optus, Vocus Group Ltd (ASX: VOC), and TPG Telecom Ltd (ASX: TPG). The report calls this meeting an “attempt to appease growing anger… about problems that have worsened due to a bungled change to a new field operations model and work scheduling system”. The resellers also accused the NBN of harming their brands through poor customer service standards.

Telstra’s NBN troubles

The report also outlines accusations that there are “constant problems” with NBN connections that use the HFC (Hybrid Fibre Coaxial) cable network to provide service. NBN has stated that a COVID-induced shortage of chips needed for modems is to blame. But the report quotes Optus vice president Andrew Sheridan, who dismisses these claims:

It has known for the last ten years that it needed to move all of these customers onto the cable platform, so for them to just say ‘Oh we’ve hit trouble with supply of chipsets’ is not good… It is just leading to terrible customer experiences, because there are some people who cannot connect to broadband, and there are no alternative options available. Then we are the ones that take the reputational hit with customers and get the complaints to the ombudsman.

Telstra has voiced similar concerns.

This could be behind the source of investors disquiet over Telstra today. It’s not just Telstra shares either. Both the Vocus and TPG share prices have also taken hits today, which indicates that it is indeed a sector-wide sell-off going on.

Shareholders might be frustrated with these developments, seeing as it doesn’t look like it’s a problem that was caused, or can be fixed by, the telcos themselves. But that’s the way the cookie sometimes crumbles in this space. At the current share price, Telstra has a market capitalisation of $40.85 billion.

More reading

• Is ASX 200 share market volatility always a buying opportunity?
• The latest ASX shares that top brokers have upgraded to “buy”
• Can China really crash the iron ore price?
• Why the Strike Energy (ASX:STX) share price is charging higher
• ASX 200 up 0.45%: Carsales sinks 10%, Aristocrat Leisure jumps

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. At the time of writing, the benchmark index is up 0.3% to 7,037 points.

Four ASX shares that are climbing more that most today are listed below. Here’s why they are storming higher:

AnteoTech Ltd (ASX: ADO)

The AnteoTech share price is up over 12% to 33.7 cents. Investors have been buying the biotech company’s shares after it announced the finalisation and signing of a manufacturing contract for its COVID-19 Antigen Rapid Test (ART) with Spain-based contract manufacturer Operon. AnteoTech and Operon have agreed to an exclusivity period of three years, during which Operon has the first right of refusal to manufacture the test to supply the European market.

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat Leisure share price is up 4% to $38.93. The catalyst for this was the release of a first half update by the gaming technology company. According to the release, Aristocrat Leisure expects to report a 12% increase in normalised NPATA to $412 million for the half. This has been driven by stronger than expected performances from both its Gaming and Digital businesses.

BWX Ltd (ASX: BWX)

The BWX share price is up 2.5% to $4.73. This morning the personal care products company announced an agreement to acquire online retailer Flora & Fauna for up to $30.8 million. Flora & Fauna is a Sydney-based online retailer that is focused on selling vegan, ethical, and sustainable products. The company is forecasting revenue in the range of $16.4 million and $17.1 million in FY 2021.

Xero Limited (ASX: XRO)

The Xero share price is up 6% to $119.05. This gain appears to have been driven by a combination of bargain hunters swooping in following a sharp decline last week and a bullish broker note out of Morgan Stanley. In respect to the latter, the broker has retained its overweight rating but trimmed its price target to $135.00. Morgan Stanley believes the company’s reinvestment plan is the correct strategy to maintain its leadership position and support its growth.

More reading

• Why the Anteotech (ASX:ADO) share price is soaring 10% today
• ASX 200 up 0.45%: Carsales sinks 10%, Aristocrat Leisure jumps
• Leading brokers name 3 ASX shares to buy today
• Aristocrat Leisure (ASX:ALL) share price jumps 9% on profit update
• Why the BWX (ASX:BWX) share price is on watch this morning

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended BWX 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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It’s been an interesting year for copper prices, which rocketed to an all-time high last week. This comes on the back of strong demand for copper’s widespread application, including in the electrical (including electric vehicles) and construction industries.

Below we take a closer look at the copper price and the major ASX copper shares.

Copper spot price near all-time high

Investor interest in the brownish-orange metal has picked up of late, with copper hitting a record high price of US$4.76 per pound last Wednesday. Furthermore, copper prices have jumped by around 32% so far in 2021. 

The recovery of the world economy from the impacts of COVID-19, along with supply constraints, has driven copper prices to extraordinary levels. In addition, the demand for electric vehicles, which require copper as a key component of their batteries, has soared.

At today’s prices, copper is being exchanged for US$4.67 per pound, up 0.2% for the day.

What are the ASX copper shares?

At current, there are 11 copper-focused ASX-listed companies. While the majority of these have market capitalisations of less than $200 million, there are three notable big players. These are OZ Minerals Limited (ASX: OZL), Sandfire Resources Ltd (ASX: SFR), and Aeris Resources Ltd (ASX: AIS).

Unsurprisingly, the share prices of the three largest ASX copper miners have accelerated in recent times.

OZ Minerals, the ASX’s biggest copper company by market cap, has seen its shares surge by around 186% over the past 12 months. Year-to-date performance sits at above a 31% gain. Notably, the OZ Minerals share price reached an all-time record high of $27.15 just last week. Currently, the company’s shares are trading 1.39% lower for the day at $24.81.

Sandfire Resources, the second-largest ASX copper company, has also stormed higher of late. The Sandfire share price has rallied by around 74% since this time last year and has advanced by around 40% year to date. The company is very close to breaking its multi-year high of $7.83, which was also set last week. At the time of writing, its shares are trading at $7.46.

Meanwhile, Aeris Resources shares have exploded by around 400% on their one-year price chart. The strong growth could be partially attributed to the fact the company’s market cap is considerably smaller than OZ Minerals and Sandfire Resources. At today’s prices, Aeris Resources is valued at around $307 million, compared to $8.2 billion and $1.3 billion for OZ Minerals and Sandfire, respectively.

The Aeris Resources share price hit a new multi-year high of 18 cents today before retreating to its current level of 16 cents.

Where to next for copper prices?

A number of analysts have put forward their views regarding future copper prices.

On 4 May, Bank of America commodity strategist Michael Widmer highlighted that the current copper supply covers just 3 weeks of global demand. He said (quoted by CNBC):

Linked to that, we forecast copper market deficits, and further inventory declines, this year and next. With (London Metal Exchange) inventories close to the pinch-point at which time spreads can move violently, there is a risk backwardation, driven by a rally in nearby prices, may increase.

According to Bank of America, copper prices could hit US$20,000 per metric tonne by 2025.

The following day, David Neuhauser, founder and managing director of United States hedge fund, Livermore Partners told CNBC:

I think copper is the new oil and I think copper, for the next five to 10 years, is going to look tremendous with the potential for $20,000 per metric ton.

We think there are some very solid small cap companies that have massive production potential, and valuations are attractive.

More reading

• The Aeris (ASX:AIS) share price is flying 20% on ‘massive’ copper find
• Why the Helix (ASX:HLX) share price is rocketing 129%
• The ASX shares poised to benefit from new spending in the 2021 federal budget
• The ASX miners caught in the FOMO trade as copper smashed record highs
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs

Motley Fool contributor Aaron Teboneras 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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Over the past few weeks, ASX investors have become acquainted, or I should say reacquainted, with volatility. Yes, the S&P/ASX 200 Index (ASX XJO) did reach a record high on Monday last week. But it was a choppy road to get there. And just after Monday’s record high, ASX 200 shares had gone backwards by close to 3% by Thursday.

As the new week starts today, the ASX 200 looks to be on the rise again and approaching its new high watermark once more. But it looks as though volatility is here to stay too, at least in the short term. As we discussed at length, it was renewed fears over US inflation that stirred the pot with the volatility we saw over last week. And the worst hit ASX shares were those in the ASX tech sector. Take Afterpay Ltd (ASX: APT). It managed to lose more than 12% of its value since Monday last week, not helped by the ~1% loss today. Other ASX tech shares that have taken similar beatings over the past week include Xero Limited (ASX: XRO), Zip Co Ltd (ASX: Z1P) and Appen Ltd (ASX: APX).

It’s been a bit of a rollercoaster ride, owning any of these companies over the past month (or even week) alone. Those investors who love to follow the ‘value investing‘ playbook might be telling you to ‘buy the dip’ or something similar today. You know, ‘buy low, sell high’ and all. But is volatility always a buying opportunity?

Volatility and ‘buying the dip’

Well, that’s not the easiest question to answer. There are a few questions you might want to ask yourself before you rush into these shares or any other shares that are looking relatively cheap to what they were a few months, or even weeks ago.

Firstly, asking ‘why is this volatility happening?’ is probably a top idea. Shares sell off for all sorts of reasons. Investors might have lost interest in the company. The market might not like a company’s management team’s new plan for its business. A company might be competing in a dying industry. Or, in the case of ASX tech shares recently, the prospects of interest rates and inflation might be spooking investors in one particular sector. The list goes on. Obviously, not all of these reasons to sell a share mean it’s a good idea. Some of these issues might be temporary, meaning that it might be a better idea to buy more shares, rather than sell out. If it turns out that the fears over inflation and interest rates are unfounded, this may apply to the ASX tech space right now.

But on the other hand, you want to get out as fast as possible if there is truly a long-term, structural problem with a business that will result in it shrinking, rather than growing over time.

Volatility can be your friend. Sometimes shares just drop because the market is temperamental and emotional at times. But not always. Sometimes things drop for a good reason. Knowing the difference can make a big difference to your ASX share portfolio over time.

More reading

• The latest ASX shares that top brokers have upgraded to “buy”
• Can China really crash the iron ore price?
• Why the Strike Energy (ASX:STX) share price is charging higher
• ASX 200 up 0.45%: Carsales sinks 10%, Aristocrat Leisure jumps
• Why the Chorus (ASX:CNU) share price is moving higher

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Appen Ltd, Xero, and ZIPCOLTD FPO. 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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Shares in Crown Resorts Ltd (ASX: CWN) are gaining today after news the company has rejected Blackstone Group Inc‘s (NYSE: BX) acquisition offer. At the time of writing, the Crown share price is up 0.88%, with shares in the company trading for $13.16.

While Crown has officially knocked back Blackstone, it’s still considering the merger proposal put to it by Star Entertainment Group Ltd (ASX: SGR).

The acquisition offer from Blackstone was proposed on 22 March and revised twice, with the latest revision announced last week. It would have seen Blackstone buying all shares in Crown and paying $12.35 per share.

Let’s take a look at the news driving the Crown share price today.

No deal 

According to Crown, its board unanimously agreed that the offer undervalued Crown and wasn’t in its shareholders’ best interests.

The board took into account both revisions of the offer. The first being that Blackstone could take on greater regulatory risk in exchange for faster acquisition. The second, an offer of an extra 50 cents per share more than the original offer of $11.85 per share.

Crown stated the original takeover offer was only a 19% premium on the volume-weighted average price between the release of its results from the first half of the 2021 financial year and Blackstone’s initial acquisition offer.

It also said the prices revision only represented a 4% increase on the original offer despite the S&P/ASX 200 Index (ASX: XJO) gaining 6% in the time between the initial offer and the second revision.

The offer was also rejected because of its timing. Crown stated it came at an opportune moment. Right in between the release of Crown’s loss of earnings due to COVID-19 and the enactment of its plan to pay off a significant portion of debt.

Crown has rejected Blackstone’s offer despite reports on Friday that its substantial shareholder Perpetual Investments was pushing for Crown’s board to sell the business.

Star merger still on the cards

After turning down Blackstone, Crown advised that its board still hasn’t made a decision regarding Star Entertainment’s merger proposal.

Star proposed the merger last Monday. At the time, The Motley Fool Australia reported Star believed the merger could “create a national tourism and entertainment leader with a world-class portfolio of integrated resorts”.

The merger would see Star trading 1 Crown share in for 2.68 shares in Star Entertainment.

Today, Crown announced it has requested more information from Star to help its board better understand some preliminary matters.

Crown share price snapshot

The Crown share price has performed well on the ASX this year.

Currently, the Crown share price is up 32.9% year to date and has lifted 42.4% over the last 12 months.

The company has a market capitalisation of around $8.8 billion, with approximately 677 million shares outstanding.

More reading

• The latest ASX shares that top brokers have upgraded to “buy”
• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears
• Top brokers name 3 ASX shares to buy next week
• These were the best performing ASX 200 shares last week
• Crown Resorts (ASX:CWN) share price lifts amid sell-off push

Motley Fool contributor Brooke Cooper 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 shares have kicked off to a positive start for the week but two stand out after brokers upgraded them to “buy” today.

The S&P/ASX 200 Index (Index:^AXJO) inched up 0.3% during lunch time trade. It’s sitting comfortably above the psychologically important 7,000 mark.

While the index has gained close to 30% over the past year, experts say it isn’t too late to join the party.

New ways to get high

One ASX share that became the latest buy idea is the Treasury Wine Estates Ltd (ASX: TWE) share price, according to Morgans.

The broker upgraded the stock to “add” from “hold” following the wine maker’s investor day presentation.

Treasury Wine outlined its growth strategy for the next five years to combat its sudden cut-off from the lucrative Chinese market.

The strategy included the formation of three new divisions: Penfolds, Treasury Americas and Treasury Premium Brands.

New strategy triggers “buy” upgrade for this ASX share

“Importantly, TWE’s FY21 trading update was better than expected despite COVID still impacting some of its higher margin channels and there have been no China sales in the 2H21 following the introduction of the tariffs on Australian wine,” said Morgans.

“We think the new divisions will allow the market to properly value the Penfolds brand and prove that the SOTP is worth more than the whole.

“The new operating model could also lead to some form of corporate activity in the future.”

Morgans’ 12-month price target on the Treasury Wine share price increased to $13 from $11.10 a share.

Winning streak lifts Crown share price

Talking about corporate activity, the Crown Resorts Ltd (ASX: CWN) share price got upgraded by JPMorgan.

However, the broker’s decision to lift the Crown share price to “overweight” from “neutral” isn’t so much due to merger and acquisition (M&A) speculation.

Takeover talks are the only thing firing up the once friendless casino operator. The Crown share price is up by around 10% due to corporate interest, which includes a merger proposal from rival Star Entertainment Group Ltd (ASX: SGR).

Who knows how this will play out? It’s usually a bad idea to buy an ASX share just for its takeover potential.

But there could actually be fundamental value in the Crown share price even after its share price run.

Property is key to broker “buy” upgrade

JPMorgan ponders on how a spin-off of Crown’s property assets could impact on the value of its shares.

Crown did contemplate such a move back in June 2016 too. The idea was to list 49% of its Australian hotels and properties in an ASX property trust, while the casino operator kept the balance.

If Crown did something similar today, it would increase the value of the Crown share price considerably.

In fact, JPMorgan upped its 12-month price target on the shares to $15 from $11 just based on the prospect of such a transaction.

The worst could be over for Crown shareholders, regardless of whether a binding takeover offer emerges.

More reading

• Can China really crash the iron ore price?
• Why the Strike Energy (ASX:STX) share price is charging higher
• ASX 200 up 0.45%: Carsales sinks 10%, Aristocrat Leisure jumps
• Why the Chorus (ASX:CNU) share price is moving higher
• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Infinity Lithium Corp Ltd (ASX: INF) share price has had a disastrous start to the week.

In afternoon trade, the lithium explorer’s shares are down a massive 67% to 6.2 cents.

Why is the Infinity Lithium share price crashing lower?

The Infinity Lithium share price has been sold off today following the release of an announcement relating to its San José Lithium Project in Spain. This project is the second largest hard rock lithium deposit in Europe.

According to the update, Infinity Lithium has received notification that the Investigation Permit Valdeflorez (PIV) application has been cancelled at the San José Lithium Project. This was due to the “urban unfeasibility of the research permit.” Essentially, the project has been deemed to be too close to the local town.

The company advised that it strongly disputes the validity of the decision to cancel the application. Furthermore, following legal advice, the company has lodged an appeal of this decision.

Management explained that the company considers the Junta’s resolution to cancel the PIV to be in direct breach of the law and in contradiction of previous rulings by the Junta on the environmental and urban legality and viability of the PIV.

Though, judging by the sizeable decline in the Infinity Lithium share price today, the market doesn’t appear overly optimistic that the appeal will succeed.

Management commentary

Infinity Lithium’s CEO, Ryan Parkin, commented “The joint venture partners strongly dispute the decision and are pursuing all options to reinstate the investigation permit. The Company, in unison with our joint venture partners, are reserving all rights relating to the cancellation of the PIV and those relating to the original call for tender and subsequent award resolution, in which the regional government process was predicated on the non-existence of insurmountable legal obstacles.”

“Furthermore, the Junta’s administrative fault in the original application process led to the 2019 decision to revert the PIV into application, facilitating the pathway to this most recent decision. The Company will work with all stakeholders and aims to seek a constructive and positive resolution whether through the PIV or successive rights held by the joint venture partners,” he concluded.

More reading

• Federal support package targets Ampol (ASX:ALD) and Viva (ASX:VEA)
• Why these 3 experts aren’t worried about the tumbling Bitcoin price
• Why the Nearmap (ASX:NEA) share price continues to sink
• Why the Anteotech (ASX:ADO) share price is soaring 10% today
• Can China really crash the iron ore price?

Motley Fool contributor James Mickleboro 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.

The post Why the Infinity Lithium (ASX:INF) share price is crashing 67% lower appeared first on The Motley Fool Australia.

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Two S&P/ASX 200 Index (ASX: XJO) fuel companies have been targeted by the Federal Government’s newly announced Fuel Security Package (FSP).

Both the Ampol Ltd (ASX: ALD) share price and Viva Energy Group Ltd (ASX: VEA) share price will be in focus following the news.

At the time of writing, the Ampol share price is 5% higher, trading at $27.25. The Viva Energy share price is up 5.2%, currently trading at $2.10.  

The FSP is designed to protect Australia’s two remaining oil refineries and could be worth $2 billion.

If the package passes through Parliament, it will run from 2021 until 2030.

The package comes only months after BP plc and Exxon Mobil Corporation announced they were shutting down their respective Kwinana and Altona refineries. The Kwinana Refinery closure was announced in October 2020, while Altona’s was announced in February 2021.

Let’s take a closer look at the FSP, as well as Ampol and Viva’s reactions to its announcement.  

What is the Fuel Security Package?

The FSP may see Ampol and Viva offered up to 1.8 cents per litre of fuel produced at their refineries through a Fuel Security Services Payment.

Through the FSP, the refineries will receive Government support payments if their margin of profit falls to, or becomes lower than, $10.20 per barrel of oil.

The amount of support received by the refineries depends on the amount of lost profit. It’s limited to 1.8 cents per litre of fuel, which the companies will receive if their refineries’ profit margin is equal to or less than $7.30 per barrel of oil. That would equate to $2.90 of Government funding per barrel of oil.  

ABC News reports that if both refineries are paid at the highest rate available for the course of the FSP, it will cost the Federal Government a total of $2 billion.

The Government may also provide grants of up to $125 million to each refinery. The grants would help to pay for upgrades to allow the production of ultra-low sulphur gasoline. It will also provide a variable support payment of up to $108 million each year to help them through times of low incomes.

The FSP legislation is to be introduced to Parliament in the coming weeks, with hopes the FSP will be up and running by 1 July 2021.

Reactions to the FSP

Both ASX 200 fuel companies shared their excitement over the FSP yesterday.

Ampol welcomed the news, saying it would continue operating its Lytton refinery if the funding came to fruition. However, it would only commit to keeping the Lytton refinery open until mid-2027, an operational timeframe that is a condition of receiving FSP funding. 

Viva stated it planned to participate in the funding program, saying oil refining was important to Australia’s energy security.

ABC News today quoted Prime Minister Scott Morrison as saying:

This is a key plank of our plan to secure Australia’s recovery from the pandemic and to prepare against any future crises…

Shoring up our fuel security means protecting 1,250 jobs, giving certainty to key industries, and bolstering our national security.

Energy Minister Angus Taylor added:

Supporting our refineries will ensure we have the sovereign capability needed to prepare for any event, protect families and businesses from higher prices at the bowser, and keep Australia moving as we secure our recovery from COVID-19.

Commentary from management

Viva CEO and managing director Scott Wyatt commented on the FSP, saying:

Today’s announcement by the Federal Government provides important and welcome structural support to the refining sector in Australia. The sector has faced several structural headwinds in recent years from challenged trading conditions globally, increased competition from Asian refinery imports, and the significant impacts of demand destruction from the COVID-19 pandemic in 2020. This has seen the number of refineries in Australia reduce from six in 2011, to only two continuing refineries today, leaving the country predominantly reliant on product imports from international refineries for our fuel requirements…

In FY2020, our Geelong operations had a cash-loss of over $200 million, and without the support of the Federal Government continued operations would have not been sustainable. This could have seen the loss of over 700 direct jobs, the loss of the last major manufacturing operations in Geelong, and a significant contributor to the Victorian economy.

Ampol CEO and managing director Matt Halliday also commented:

We are pleased that the governments have recognised the challenges faced by the local refining industry which includes competition from large-scale international refineries and the impacts of COVID-19.

Viva and Ampol share price snapshots

The Ampol share price needs today’s good news as it battles a tough 2021 on the ASX. Ampol shares are down 3.4% year-to-date, although they have lifted 7.7% over the last 12 months. 

The ASX has been kinder to the Viva Energy share price this year. Currently, it’s up 10.85% year to date, as well as 18.3% over the last 12 months. 

More reading

• Wilson Asset Management (WAM) thinks these 2 ASX shares are a buy
• ASX 200 Weekly Wrap: Shares have average week but a great month
• These were the best performing ASX 200 shares last week
• Why the Viva Energy (ASX:VEA) share price is in focus
• Aussie dollar shoots higher! Here are some ASX winners

Motley Fool contributor Brooke Cooper 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 Bitcoin (CRYTPO: BTC) price remains under pressure, with the world’s biggest crypto sliding 6.1% over the past 24 hours.

One Bitcoin is currently worth US$44,858 (AU$57,510). The slide has seen Bitcoin’s market cap fall from more than US$1.1 trillion in mid-April to US$845 billion today, according to data from CoinDesk.

Let’s keep this in perspective though.

While the Bitcoin price is now down 31% from its all-time high of US$64,829 on 14 April, it’s still up 59% in 2021. And if you’d bought Bitcoin at this time last year, you’d be still be sitting on a gain of 363%.

But that’s all in the rearview now. The question investors are pondering today is, what’s next?

Should you invest 3% of your portfolio in Bitcoin?

Whenever the price of an asset slides more than 30% over a period of weeks, investors are prone to hit the sell button. But as with shares, panic selling crypto assets may not be in investors’ best interests.

Anthony Scaramucci, founder of SkyBridge Capital, remains decidedly bullish on his outlook for Bitcoin. (You may also remember Scaramucci from his 10-day role as former US President Donald Trump’s communications director.)

According to Scaramucci (quoted by Bloomberg):

As an investment adviser and someone who’s been running money for 30-plus years, it’s responsible of me to tell my clients to own 1%, 2% or 3% [in Bitcoin]… I’m not telling them you’ve got to own 100% of your net worth in it – but if we’re right, you don’t want to be missing out on this.

Scaramucci pointed out that despite the growth in altcoins, Bitcoin has maintained “its supremacy as the apex predator in digital currency”.

Joining Scaramucci’s bullish outlook is Twitter Inc. and Square Inc. CEO Jack Dorsey. Dorsey tweeted, “Bitcoin changes *everything*… for the better. And we will forever work to make bitcoin better.”

Square’s CFO, Amrita Ahuja had earlier tweeted:

Our bitcoin strategy hasn’t changed. We’re deeply committed to this community, including working towards a greener future through our Bitcoin Clean Energy Initiative. And as we shared in February, we continue to assess our bitcoin investment on an ongoing basis. Nothing new here.

Buy-the-dip forecasts for sold off cryptos

Rather than expecting a longer-term continued slide for Bitcoin, Simon Peters, crypto analyst at multi-asset investment platform eToro, believes bargain hunting crypto investors are likely to return in the next few weeks.

According to Peters:

The sell-off is being driven by a number of factors; valuations were at or near all-time highs… so there will naturally be some profit-taking, while we are also seeing a general sell-off among risk assets – such as technology stocks – as economies start to unlock post the pandemic and investors fret over potential rate rises and higher inflation.

However, for many cryptoassets such as bitcoin and ethereum, the long-term story has not changed. This emerging asset class continues to revolutionise many aspects of financial services, and while nothing goes up in a straight line, the long-term fundamentals for cryptoassets remain as solid as ever.

Taking technical analysis aboard, Peters said, “Importantly, we continue to see higher lows, as well as higher highs, for cryptoassets as more investors enter this asset class, and we do not expect that trend to change.”

In share markets, a trend of higher highs and higher lows is considered a very bullish signal. Those same trends are also closely watched in the world of cryptocurrencies.

As far as the falling Bitcoin price goes, Peters adds, “We would expect to see buyers return to bitcoin, ethereum and peers in the next few weeks to take advantage of lower prices.”

If you are tempted to go bargain hunting among the beaten-down cryptos, bear in mind their historically notorious volatility. If you can stomach that level of price swings, best of luck buying the dip!

More reading

• Bitcoin suffers largest correction since March 2020
• Why I’m loving this ASX bank share at the moment: fundie
• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears
• Elon Musk cancels Bitcoin! Is it gold’s gain?
• Tesla stops taking Bitcoin payments over fossil fuel concerns

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin, Square, and Twitter. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why these 3 experts aren’t worried about the tumbling Bitcoin price appeared first on The Motley Fool Australia.

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The Nearmap Ltd (ASX: NEA) share price is trading lower on Monday.

In early afternoon trade, the aerial imagery technology and location data company’s shares are down 3% to $1.69.

This means the Nearmap share price is down 18% over the last two weeks.

Why is the Nearmap share price under pressure again today?

Investors have been selling Nearmap’s shares today after it responded to an ASX Query this morning.

Judging by the regulator’s queries, it appears as though it was concerned with the timing of Nearmap’s guidance upgrade and litigation-related trading halt request.

Nearmap announced an increase to its FY 2021 guidance on 4 May following the market close. The next morning the Nearmap share price surged higher in response to it before being hurried into a trading halt just over an hour after trading commenced.

Unfortunately for anyone that invested during that first hour, the Nearmap share price crashed lower after returning from its trading halt.

What did Nearmap say?

The ASX asked Nearmap when it first become aware of the litigation news.

It responded: “At 9.58am AEST on Wednesday 5 May 2021, NEA’s General Counsel reviewed an email delivered at 9.55am AEST on Wednesday 5 May 2021. The email, from lawyers in the United States, attached a 96-page complaint which was filed in the United States District Court (District of Utah, Northern Division). The lawyers in the United States had received the complaint via an alert service to which they had subscribed. This was the first NEA became aware of the Information.”

After which, the company revealed that its Chairman and CEO were notified promptly.

It explained: “After NEA became aware of the Information at 9:58am AEST on 5 May 2021, NEA took steps promptly and without delay to assess whether the Information was required to be disclosed under Listing Rule 3.1. These steps included: 1. notifying the CEO and Chairman promptly and without delay of receipt of the Information; 2. reviewing and considering the Information, being the 96-page complaint raising technical legal matters relating to technical aspects of US law, which was received by NEA without any forewarning; and 3. seeking legal advice from external counsel due to the complexity of the Information.”

“At 11.01am AEST on 5 May 2021, having undertaken the above steps, NEA made an initial assessment and formed a view that the Information could potentially be material to the market price of NEA’s securities but it required more time to conclude that consideration and prepare an announcement. NEA’s CEO and Chairman determined at that time that NEA should request a trading halt to manage its disclosure obligations,” Nearmap concluded.

This explanation appears to have satisfied the ASX team, though it hasn’t been enough to stop its shares from sliding.

Is the Nearmap share price in the buy zone?

According to a note out of Morgan Stanley, its analysts believe the Nearmap share price is great value.

Following the litigation news, the broker retained its overweight rating and $3.20 price target on its shares. This implies almost 90% upside over the next 12 months.

More reading

• Why a2 Milk, Afterpay, Nearmap, & REA Group shares are sinking
• Leading brokers name 3 ASX shares to buy today
• Why Crown, Fortescue, Nearmap, & Tyro shares are charging higher
• Why the Nearmap (ASX:NEA) share price is jumping 7% today
• ASX 200 Weekly Wrap: Bank shares push ASX 200 towards all-time high

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

The post Why the Nearmap (ASX:NEA) share price continues to sink appeared first on The Motley Fool Australia.

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