The Carnaby Resources Ltd (ASX: CNB) share price was through the roof today. By close of trade, shares in the mineral exploration company were trading for 30 cents each – up 11.11%.

The significant price rise came after the company announced it detected “strong” induced polarisation (IP) signals at its gold mine in Queensland.

Let’s take a closer look at the announcement.

What boosted the Carnaby share price?

In a statement to the ASX, Carnaby Resources said 4 “strong IP conductors…have been generated at the Nil Desperandum Prospect [in Mt Isa, Queensland] …” The company says the results mean it now has immediate walk-up targets for drilling.

IP is a method to locate deposits of ore, including gold and copper, in surfaces without the need to first dig into the ground.

After today’s result, the company said it would bring forward drilling in the area to next week. It also said it conducted further IP tests at its Mount Birnie and Duchess Prospects. These will be announced “shortly”, according to the statement.

Investors are have been buoyed by today’s results, judging by the Carnaby share price action.

Management commentary

Carnaby managing director Rob Watkins said of today’s news:

Nil Desperandum and our other Greater Duchess Copper Gold prospect areas are rapidly emerging as an exceptional camp of high-grade copper gold targets…

He added:

We are genuinely excited about the targets and as such we have bought forward the 4,000m RC drilling program which will now commence next week.

Copper and gold commodity prices

Historical finds at the prospect have mostly been copper and gold. Both gold and copper have seen their prices rise over the past month – copper much more so. The reddish-brown metal is up 14% over the month and 32.8% since the beginning of the year to US$4.67 per pound. Gold, meanwhile, is only 3.5% higher in a month and down 4.14% in 2021. It is trading for US$1,817.83 per troy ounce.

Surging demand for clean technologies has been fuelling the demand for copper. Some have even been speculating that the copper price may be in a bubble.

According to the website Trading Economics, lower US Treasury yields, and a weaker US dollar are both pumping the current price of gold. It also cited the metal’s safe-haven appeal to investors, as some worry about rising coronavirus case numbers in Japan and India.

Carnaby Resources share price snapshot

Over the past 12 months, the Carnaby Resources share price has increased by around 440%. Only 2 days ago, the company had another double-digit growth day when it announced another gold discovery.

In the last half-year, however, the company’s value has decreased by 19.2%.

Carnaby Resources has a market capitalisation of $46.5 million.

More reading

• Carnaby (ASX:CNB) share price strikes gold and shoots 14% higher

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In the mid cap space there are a good number of shares that have the potential to grow strongly over the next decade, potentially generating market-beating returns for shareholders.

Three that could be great options for long-term focused investors are listed below. Here’s why they are highly rated:

Bravura Solutions Ltd (ASX: BVS)

The first mid cap ASX share to look at is Bravura. It is a leading provider of software solutions for the wealth management and funds administration industries. Bravura has a portfolio of solutions that are both high quality and have significant market opportunities. This is particularly the case for the Sonata wealth management platform, which is used by a number of large financial institutions.

Earlier this week, Goldman Sachs retained its buy rating and lifted its price target on the company’s shares to $3.90.

Collins Foods Ltd (ASX: CKF)

Another mid cap ASX share to consider buying is Collins Foods. It is one of the largest quick service restaurant operators in the ANZ region. It currently operates 251 KFC stores in Australia, 45 KFC stores in Europe, and 16 Taco Bell across Queensland and Victoria. Positively, management still sees plenty of room to expand its network in the future, particularly in the underpenetrated European market. Combined with the continued popularity of its brands, this should be supportive of further earnings and dividend growth long into the future.

UBS currently has a buy rating and $11.65 price target on its shares.

Kogan.com Ltd (ASX: KGN)

A final mid cap ASX share to consider is Kogan. It is one of Australia’s leading ecommerce companies and has been growing at an explosive rate over the last 12 months. And while its growth is now slowing as tailwinds ease, its long term potential remains as bright as ever. This is thanks to the ongoing shift to online shopping and its strong market position.

One broker that believes that a recent pullback in the Kogan share price is a buying opportunity is Credit Suisse. Last week it retained its outperform rating and trimmed its price target to $17.93. This is materially higher than where it trades today.

More reading

• Are there buying opportunities among ASX COVID fallen stars?
• Broker tips Bravura (ASX:BVS) share price to storm 20% higher
• ASX 200 tech shares under pressure after Nasdaq selloff
• a2 Milk and Zip were among the most traded ASX shares last week
• Why the Kogan (ASX:KGN) share price was sold off in April

James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd and Kogan.com ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd, Collins Foods Limited, and Kogan.com 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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ASX shares that were favourite buys well during the COVID-19 crash have suffered a reversal of fortunes.

The question is whether these fallen angels now represent value.

The irony shouldn’t be lost on investors as these ASX shares have been the antithesis of value given their lofty valuations.

Best ASX COVID winners turn losers

Some obvious examples of high flying COVID winners that have dropped out of favour recently include tech darlings like the Afterpay Ltd (ASX: APT) share price and Altium Limited (ASX: ALU) share price.

You can also add in ASX retailers that have been able to make the most of the pandemic lockdown. These are the Kogan.com Ltd (ASX: KGN) share price, Coles Group Ltd (ASX: COL) share price and Adore Beauty Group Ltd (ASX: ABY) share price.

There’s heated debate on whether the recent downfall in these ASX shares represent a buying opportunity. But UBS is convinced that at least one of them is a “buy” now.

Swan turns into ugly duckling

This is online beauty products retailer Adore Beauty. The Adore Beauty share price tumbled to its lowest point since its October 2020 IPO on Friday when it closed at $3.68.

Investors got spooked by its latest trading update even though management expected FY21 sales growth of 43% to 47%. This translates to $173 million to $178 million.

But this isn’t enough to keep investors onside. UBS acknowledged that the updated guidance implied a 2HFY21 sales figure of between $77 million and $82 million.

That’s 3% to 9% below UBS’ estimates and between 11% and 16% under consensus forecasts.

Why you should buy this former ASX COVID winner

ASX shares trading on sky-high valuations have no room to disappoint. This is especially so in the current environment when investors are increasingly starting to question if equities have overshot their fundamentals.

UBS does not share these concerns regarding the Adore Beauty share price. If anything, it believes the sell-off is overdone.

“While the slowdown in momentum was more than expected, our medium-term thesis has not changed, with the stock offering an attractive entry point,” said UBS.

“It has an opportunity to ride structural tailwinds (online beauty market growing ~26% pa), lift brand awareness and benefit from maturing customer cohorts.”

Adore Beauty share price looking attractive

The broker pointed out that the Adore Beauty share price is trading around 45% below its IPO price. It is also cheaper than the Temple & Webster Group Ltd (ASX: TPW) share price on an enterprise value/sales to growth ratio.

UBS reiterated its “buy” rating on the Adore Beauty share price with a 12-month price target of $5.60 a share.

More reading

• ASX tech shares are in a world of pain. There might be more to come…
• The Afterpay (ASX:APT) share price breaks below $100
• Why Adore Beauty, Appen, HUB24, & News Corp shares are charging higher
• Brokers name 3 ASX shares to buy now
• Why the Adore Beauty (ASX:ABY) share price is rebounding 7% today

Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited and Altium. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, and COLESGROUP DEF SET. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group 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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Every so often, I like to take a look to see which shares have experienced meaningful insider buying. This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors.

A number of shares have reported meaningful insider recently. Here are a couple which have caught my eye:

Breville Group Ltd (ASX: BRG)

According to a change of director’s interest notice, the Chairman of this appliance manufacturer has been topping up his position.

The notice reveals that Steven Fisher bought 1,221 shares via an on-market trade on 29 April. The Chairman paid a total of $32,119.14 for the shares, which equates to an average of $26.30 per share. This purchase lifted Mr Fisher’s holding to a total of 130,000 Breville shares.

With the Breville share price now trading at $25.83, investors have the opportunity to invest at an even cheaper price.

Analysts at UBS certainly think this would be a good idea. This morning the broker retained its buy rating and $35.70 price target on the company’s shares.

Based on the current Breville share price, this price target represents potential upside of 38% over the next 12 months.

Metcash Limited (ASX: MTS)

Another change of director’s interest notice reveals that one of this wholesale distributor’s new directors has already been buying shares. According to the notice, Margaret Haseltine bought 57,839 Metcash shares within just a few days of her appointment to the board.

The release advises that Ms Haseltine snapped up the shares through on-market trades between 4 May and 5 May for an average of ~$3.46 per share. This represents a total consideration of $199,784.90.

One broker that would be supportive of this purchase is Morgan Stanley. In March the broker put an overweight rating and $4.20 price target on the company’s shares.

So, with the Metcash share price currently trading at Ms Haseltine’s buy price of $3.46, this implies potential upside of 21% over the next 12 months.

More reading

• 2 stellar ASX growth shares rated as buys
• These are the 10 most shorted shares on the ASX
• Are Woolworths (ASX:WOW) shares too expensive?
• 2 excellent ASX growth shares tipped as buys
• Looming grocery price shock to impact on these ASX shares

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.

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Things have gone from bad to worse for the TPG Telecom Ltd (ASX: TPG) share price. Its shares have slumped almost 40% since its merger between TPG Telecom Ltd and Hutchinson Telecommunications Ltd on 30 June 2020.

However, broker Morgans thinks the stock could be a ‘buy the dip’ opportunity. 

Why has the TPG share price underperformed? 

The TPG share price performance has been keeping pace with its competitor, Telstra Corporation Ltd (ASX: TLS). It wasn’t until Telstra announced its plans in March to restructure its business that a divergence in performance began to emerge. 

Despite TPG’s solid financial performance, the company’s management has undergone a series of significant changes. 

The TPG share price took a 7% dive to $6.40 on 26 March after the announcement of its 2020 annual report and the resignation of founder David Teoh. 

Brokers were quick to critique the founder’s resignation.

Credit Suisse said at the time that the resignation created a potential “share overhang”. This is because David Teoh, his family and associates hold a 17.1% interest in TPG Telecom, with 80% of the holding subject to an escrow until the end of June 2022. The broker notes that his exit could see other shareholders exit their holdings as well. 

To add further insult to injury, the TPG share price took another 5.50% fall to $5.25 on Thursday after the resignation of CFO Stephen Banfield. 

Why the TPG share price could be a buy

Morgans has retained an add rating for TPG shares on Friday. The broker views the short-term share price weakness as a buying opportunity but reduced its target price from $8.11 to $7.17 to adjust to capex forecasts. 

TPG has not provided any concrete figures regarding year to date performance. However, in its chairman’s address to shareholders presentation on 6 May, management said that “we are tracking well against our forecast for the year”. Morgans assumes that the company is broadly comfortable with FY21 earnings.  

The TPG share price is fetching $5.45 at the time of writing, up 4%. 

More reading

• Telstra (ASX:TLS) and 2 other dividend shares with yields over 6% today
• TPG (ASX:TPG) share price tumbles 6% as CFO resigns
• Blue chip ASX 200 shares breaking out into 52-week highs
• Why the Telstra (ASX:TLS) share price is at a new 52-week high
• Telstra (ASX:TLS) share price edges higher despite record $1.5 million fine

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. 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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The Strike Energy Ltd (ASX: STX) share price lifted off today following an update on its recent share purchase plan (SSP).

At market close, the energy producer’s shares finished the day up 5.7% to 37 cents.

Details of Strike’s SSP

Investors were busy snapping up Strike Energy shares today following a heavily subscribed SPP from the company.

According to its release, Strike Energy advised it has collected over 1,500 applications, equating to around $30 million. The offer was open to eligible investors who held shares in the company before 14 April 2021.

As a result of the significant interest received, the board has determined to double the original SSP offer amount to $10 million. This will leave the company to scale back applications from shareholders to around one-third of the amount applied for.

Strike Energy stated that the funds will be used to supplement a number of activities. These are as follows:

• Project financing and delivery of ‘First Gas’ from Phase 1 of Greater Erregulla Project at West Erregulla;
• Proving up South Erregulla gas resources;
• Appraisal of the Perth Basin wet-gas Jurassic play at Walyering;
• Fertiliser development at Project Haber
• Subsurface geotechnical work, engineering and preparation for the Mid-West Geothermal pilot;
• Critical 2D & 3D seismic campaigns to delineate the next wave of gas and geothermal resource addition.

The company further noted that because of the over-subscribed offer, members of the board have sacrificed their applications.

Strike will issue up to a total of 33.3 million ordinary shares, ranking equally with its existing holdings. The newly created shares will be allotted this coming Monday, and available for trading the day after.

Strike Energy share price summary

Over the past 12 months, the Strike share price has accelerated to post a gain of around 140%. Year-to-date performance stands just shy of 40%, reflecting positive investor sentiment.

Strike Energy has a market capitalisation of a tad over $201 million, with more than 1.1 billion shares on its registry.

More reading

• The Strike Energy (ASX:STX) share price is on watch today. Here’s why
• What’s causing the Strike Energy (ASX:STX) share price surge?
• Strike (ASX:STX) share price freefalls 9% on capital raising efforts
• Why Mineral Resources, Origin, Strike, Whitehaven shares are sinking
• Strike Energy (ASX:STX) goes into trading halt for $80m cap raise

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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The South32 Ltd (ASX: S32) share price edged higher today. The company was in focus after news filtered through it has lodged an appeal against the New South Wales Independent Planning Commission (IPC) over its decision to block an extension of South 32’s Dendrobium coal mine.

By the market’s close, shares in the metals and mining company were trading at $2.99 – up 0.34%. Similarly , the S&P/ASX 200 Index (ASX: XJO) is 0.2% higher.

Let’s take a closer look at today’s developments.

Case background

Back in February, the IPC blocked a decision by the state Department of Planning to approve South32’s $956 million plan to extend the life of the Dendrobium coal mine to 2048 and extract an additional 78 million tonnes of coal from the site.

The commission cited the high likelihood of adverse impacts on the local environment. The commission stated it felt South32 could not manage the risk appropriately and any damage would be irreversible. It went on to say the benefits of the project did not outweigh these costs.

“[T]he level of risk posed by the Project has not been properly quantified and based on the potential for long-term and irreversible impacts — particularly on the integrity of a vital drinking water source for the Macarthur and Illawarra regions, the Wollondilly Shire and Metropolitan Sydney — it is not in the public interest,” the IPC’s Statement of Reasons for Decision read.

Conservative NSW politicians at the time, including Deputy Premier John Barilaro and Upper House MP and One Nation leader Mark Latham, decried the decision.

NSW Legislative Council resumes sittings tomorrow and One Nation will be fighting to:

1. Approve the South32 coal mine, essential for steelmaking and jobs in the Illawarra

2. Protect mining jobs and create new work in the Hunter

3. Expose Matt Kean’s 100% renewables rort.

— Real Mark Latham (@RealMarkLatham) February 14, 2021

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“The decision by the IPC to reject South 32’s Dendrobium coal expansion will be recorded as one of the most destructive decisions since the IPC’s formation,” Mr Barilaro said at a press conference soon after the decision was handed down.

South32 appeal

In a statement yesterday, South32 said it would appeal the decision.

“South32 has commenced proceedings in the Land and Environment Court of New South Wales, seeking a judicial review of the Independent Planning Commission’s (IPC) assessment of the Dendrobium Mine Extension Project,” a spokesperson for the company said.

“This is one of a number of options we are pursuing in relation to the project, and we continue to work with all relevant stakeholders and look at potential alternative mine plans.”

“We have a long history of operating safely and responsibly in the Illawarra region and the proposed Dendrobium Mine Extension would provide major economic and social benefits for the Illawarra region and for New South Wales,” the spokesperson added.

The news was also reported by mainstream outlets such as the Australian Broadcasting Corporation (ABC) and The Australian. 

The ABC is also reporting that one of the other options South32 is pursuing includes direct lobbying of the state government.

South32 share price snapshot

Over the past 12 months, the South32 share price has increased by around 60%. The company recently announced its results for the quarter, which also sent its share price higher.

South32 has a market capitalisation of around $14.2 billion.

More reading

• Blue chip ASX 200 shares breaking out into 52-week highs
• Brokers rate these ASX 200 shares a buy after quarterly results
• The South32 (ASX:S32) share price is up this morning. Here’s why
• History is on the side of the battered AMP (ASX:AMP) share price as it plans its demerger
• Top broker picks ASX shares next in line for a profit upgrade

Motley Fool contributor Marc Sidarous 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 wanting to boost your portfolio with some blue chip ASX 200 shares in May?

Then you might want to take a look at the blue chips listed below. Here’s what you need to know about them:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a growing portfolio of warehouses, large scale logistics facilities, and business and office parks. 

Goodman Group has been growing at a consistently solid rate over the last few years. This has been driven by its successful strategy of investing in and developing high quality industrial properties in strategic locations.

Positively, this strong form has continued in FY 2021. In fact, just this morning the company released its third quarter update and revealed further solid growth.

As a result, management believes it is on course to achieve its FY 2021 guidance for operating profit of $1.2 billion and earnings per share growth of 12%.

One broker that is positive on the company is Citi. It currently has a buy rating and $21.00 price target on its shares.

Ramsay Health Care Limited (ASX: RHC)

Another ASX 200 blue chip share to look at is Ramsay Health Care. It is a leading private healthcare company with operations across the world.

Ramsay has been battling tough trading conditions over the last 12 months due to the pandemic. And while things are still not entirely back to normal, it has returned to growth in the ANZ market.

Looking ahead, the company looks well-placed to benefit from a backlog in surgeries in the near term and increased demand for healthcare services over the long term. 

In addition to this, the company has a strong balance sheet and the option of accelerating its growth through expansions and acquisitions.

Earlier this week Goldman Sachs retained its conviction buy rating and $75.00 price target on the company’s shares. Its analysts are positive on its outlook and continue to expect Ramsay to outperform the market’s expectations in FY 2021 and FY 2022.

More reading

• Goodman (ASX:GMG) share price rises on solid Q3 update
• Top brokers name 3 ASX shares to sell today
• ASX 200 rises, ANZ drops, Nearmap jumps
• ASX healthcare shares could be next to be hit by the digital disruption
• Broker tips Ramsay Health Care (ASX:RHC) share price to shoot higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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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Estia Health Ltd (ASX: EHE) received Federal Court approval this afternoon to settle a class action brought against it.

The Estia Health share price dipped sharply immediately after the news was announced to the ASX, but has since returned to its prior trading level of $2.50, up 2%.

Estia Health is one of Australia’s largest residential aged care providers delivering care to more than 8,000 older Australians each year.

Let’s have a closer look at the settlement and class action brought against the company.

Class action

The class action against Estia has been ongoing since July 2019. Filed to the Federal Court by law firm Phi Finney McDonald, it relates to alleged breaches of the company’s disclosure obligations in 2015 and 2016.

The lawsuit concerned shareholders who had bought shares in the company or acquired long exposure to Estia shares by entering into equity swap confirmations between August 2016 and October 2016.

At the time, the Australian Financial Review reported the class action alleged Estia didn’t disclose difficulties it was experiencing around the time it published its 2016 financial year results. It also alleged the company gave misleading guidance for the 2017 financial year. 

In February 2021, Estia advised the market it had reached an agreement to settle the class action, conditional on whether the settlement would receive Federal Court approval.

Today, Estia said that the cost of the settlement is $38.5 million, of which it has contributed $12.35 million. The remaining balance is to be paid by Estia’s insurers.

The company advised it was unable to say whether the class action would have a material impact on its financial position or performance.

Estia Health share price snapshot

The Estia Health share price has been a strong performer on the ASX lately. Currently, it’s up 41% year to date and has lifted 72% over the last 12 months.

The company has a market capitalisation of around $640 million, with approximately 261 million shares outstanding.

More reading

• Estia Health (ASX:EHE) share price jumps 7% to new 52-week high

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The Elixir Energy Ltd (ASX: EXR) share price is climbing today following the release of an operations update.

During late afternoon trade, the energy producer’s shares are fetching for 40.2 cents, up 3%.

What did Elixir announce?

Investors appear upbeat with the company’s latest progress, pushing Elixir shares within reach of its multi-year high of 51 cents.

In a statement to the ASX, Elixir provided an update on the current exploration program at the Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC).

Located within the Nomgon project in Mongolia, Elixir advised it has spudded its Cracker-1S exploration well yesterday. The drilling is the first in the sub-basin which was identified by the company’s 2020 2D seismic program.

A little over a month ago, a second drilling company was sub-contracted by Elixir. It noted that as soon as COVID-19 restrictions lift, it will move to a new area in the sub-basin. This is expected to occur within the next two weeks.

Elixir highlighted that its 2021 2D seismic program has acquired 51 kilometres of new seismic. This is being processed quickly for the expanded drilling program.

Elixir managing director, Neil Young commented:

The Cracker-1S well is an exciting one for the Company, given its significant distance from our prior discoveries. Its geological potential to open up a new sub-basin is supplemented by its favourable location for access to such infrastructure as larger capacity electricity lines and the regional capital.

Elixir Energy share price summary

It’s been an impressive 12 months for shareholders who invested in the Elixir share price, recording gains of 1,200%. Looking at year-to-date performance, late investors would also be seeing green, up 220%. Interestingly, the company’s shares have been on a strong growth trajectory since the start of the year.

Based on valuation metrics, Elixir commands a market capitalisation of around $337 million, with roughly 842 million shares on issue.

More reading

• The Elixir Energy (ASX:EXR) share price is down 10% today. Here’s why
• The Elixir Energy (ASX:EXR) share price is charging up today. Here’s why

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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