Betashares’ latest exchange-traded fund (ETF) has just hit the ASX. The Climate Change Innovation ETF (ASX: ERTH) offers one-trade exposure to 90 global companies that derive at least 50% of their revenues from products and services that help address climate change and/or other environmental issues.

It is very much a macro play on arguably one of the most significant current addressable market opportunities there is.

What companies are in ERTH?

The ASX ERTH ETF is comprised of 90 companies that are substantially diversified in terms of industries and what they do. These range from car manufacturers and digital signature providers to vegan ready-to-eat meals and air conditioner manufacturers.

You get the idea, it’s pretty broad — and rightly so. The climate challenge is not limited to petrol-guzzling cars on our roads, it permeates nearly every nook and cranny of society.

The top ten holdings in the ERTH ETF are as follows:

• Trane Technologies PLC (NYSE: TT)
• Infineon Technologies AG (ETR: IFX)
• Zoom Video Communications Inc (NASDAQ: ZM)
• Cie De Saint-Gobain SA 
• DocuSign Inc (NASDAQ: DOCU)
• Tesla Inc (NASDAQ: TSLA)
• East Japan Railway Co 
• Nio Inc (NYSE: NIO)
• Vestas Wind Systems 
• Plug Power Inc

As you can see, ERTH extends much further than the ASX. Most people will have heard of Tesla, and Zoom, possibly even the digital signature provider DocuSign. But I doubt you’ve heard of the largest holding in this ETF, Trane Technologies… Well fortunately for you, I used to work as a mechanical engineer in a previous life!

Trane Technologies provides a range of heating, ventilation, and air conditioning (HVAC) products. HVAC systems actually play a large role in the energy consumption and energy efficiency of most buildings in the world. Hence, as emission targets tighten, HVAC producers find themselves at the forefront of having to invent more energy-friendly products.

The market opportunity

Companies that address climate change in some way are gaining momentum. Furthermore, more money is being poured into the sector as the world slowly but surely recognises the problem. Even the ASX’s latest debutant, ERTH, already has over $7.5 million in assets under management. 

The not-for-profit Carbon Disclosure Project (CDP) released a report in 2019 indicating that 215 of the world’s biggest companies reported almost US$1 trillion at risk from climate impacts.

Billionaire investor, Chamath Palihapitiya, has poured billions into investments seeking to address climate change. The venture capitalist even expects the first trillionaire to be made in climate change. 

The world’s first trillionaire will be made in climate change.

— Chamath Palihapitiya (@chamath) October 21, 2020

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However, buying the ERTH ETF probably won’t make you a trillionaire. At the time of writing, ERTH is down 0.4% to $12.75.

More reading

• Why the Invictus Energy (ASX:IVZ) share price is up 100% this year
• Will the Afterpay (ASX:APT) share price bounce back?
• Worried about rising interest rates impacting ASX 200 shares? Read this…
• ASX stock of the day: Event (ASX:EVT) shares are shooting higher
• The Zip (ASX:Z1P) share price just keeps on falling

Mitchell Lawler owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends DocuSign, Tesla, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of NIO Inc. The Motley Fool Australia has recommended Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Freshly listed Climate Change ETF (ASX:ERTH) making the ASX greener appeared first on The Motley Fool Australia.

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It’s been a big year so far for the Invictus Energy Ltd (ASX: IVZ) share price, which has doubled since the beginning of 2021.

In the independent oil and gas exploration company’s final announcement for 2020, its managing director, Scott Macmillion, stated it was on “a positive path for a transformational 2021”.

The question now is: What has it been doing to make this wild prediction come true?

What has Invictus Energy been up to since the new year?

Just 3 trading days before the ASX closed for 2020, Invictus Energy announced it had received a farm-in offer to Geo Associates’ Cabora Bassa Project.

A farm-in offer is a conditional grant of ownership to a project. In this case, Invictus Energy has an 80% stake in the Cabora Bassa Project.

The Carbora Bassa Project encompasses the Mzarabani Prospect, which is potentially the largest undrilled onshore structure in Africa. It is estimated to be able to produce over 1 billion barrels of oil equivalent.

Geo Associates had already signed a petroleum exploration development and production agreement (PEDPA) with the Republic of Zimbabwe, allowing the project to progress.

Invictus Energy has since undertaken detailed traversing and mapping across the area, identifying the optimal acquisition routes. It stated it was planning to carry out more testing at the end of the rainy season (October to April).

The company has not yet announced when it plans to begin drilling on the Cabora Bassa Project.

Commentary from management

Managing Director of Invictus Energy, Scott Macmillian, commented on the project’s timeline in December: “The Company is working to complete the various agreements as soon as possible in order to conclude a transaction, commence the seismic acquisition and basin opening high impact drilling campaign.”

Invictus Energy share price snapshot

The Invictus Energy share price is soaring today. At the time of writing, it is 13% up from yesterday’s closing price. Though impressive, the company is no stranger to huge gains.

Year to date, the Invictus Energy share price is up 100%. Having started the year at 5 cents, it’s currently sitting at 10 cents.

The company has a market capitalisation of $41.75 million with approximately 474 million shares outstanding.

More reading

• Freshly listed Climate Change ETF (ASX:ERTH) making the ASX greener
• Will the Afterpay (ASX:APT) share price bounce back?
• Worried about rising interest rates impacting ASX 200 shares? Read this…
• ASX stock of the day: Event (ASX:EVT) shares are shooting higher
• The Zip (ASX:Z1P) share price just keeps on falling

Motley Fool contributor Brooke Cooper has no position in any of the shares 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 Invictus Energy (ASX:IVZ) share price is up 100% this year appeared first on The Motley Fool Australia.

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It certainly has been a volatile day for the Afterpay Ltd (ASX: APT) share price.

At one stage today the buy now pay later provider’s shares were down as much as 9% to $105.11.

The Afterpay share price then recovered to be down just 2.5% to $112.33 before falling back to be down 4.5% to $110.00 at the time of writing.

This means its shares are now down 31% from their record high of $160.05.

Why is the Afterpay share price under pressure?

Investors have been selling Afterpay shares in recent weeks amid concerns over rising bonds yields.

Rising bond yields are bad news for richly valued growth stocks as they form part of analysts’ valuation models. Essentially, as the riskfree rate rises, the premium that investors are willing to pay to put their money into risk assets decreases.

And given the extreme multiples that Afterpay and Zip Co Ltd (ASX: Z1P) shares trade on, it’s not a big surprise to see their shares come under pressure.

Is this a buying opportunity?

A number of brokers believe the recent weakness in the Afterpay share price is a buying opportunity.

One of those is Ord Minnett. Last week its analysts retained their buy rating and lifted their price target on the company’s shares to $150.00.

Based on the current Afterpay share price, this represents potential upside of 36% for its shares over the next 12 months.

Elsewhere, analysts at Morgan Stanley have an overweight rating and $159.00 price target, Wilsons has a buy rating and $160.20 price target, and Bell Potter has a buy rating and $168.50 price target.

In respect to the latter, Bell Potter is particularly positive on the company’s expanding product range. This follows its collaboration with Westpac Banking Corp (ASX: WBC), which will see the launch of Afterpay Money in the near future. It suspects that this could be the first of several new products, potentially even home loans.

If Bell Potter is on the money with its recommendation, then the Afterpay share price could be hitting a new record high later this year. Shareholders certainly will be hoping this proves to be the case.

More reading

• Why Afterpay, Nearmap, Temple & Webster, & Z Energy are tumbling lower
• Could Australia be the next tech hub? Afterpay (ASX:APT) CEO thinks it should be
• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Is Afterpay (ASX:APT)’s BNPL competition heating up?

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Will the Afterpay (ASX:APT) share price bounce back? appeared first on The Motley Fool Australia.

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In recent weeks, the financial news chatter has turned to resurgent inflation and the spectre of higher interest rates. And when interest rates go up, it can put pressure on shares, particularly growth shares.

When United States Government 10-year bond yields hit 1.6% earlier in the week, global share markets sold off. In Australia, the S&P/ASX 200 Index (ASX: XJO) was no exception.

But according to the world’s leading central bankers (past and present), investors’ inflation concerns are ill-founded.

On Monday, former Federal Reserve chair and current US Treasury Secretary Janet Yellen dismissed the notion that President Joe Biden’s US$1.9 trillion (AU$2.5 trillion) COVID recovery package would stoke inflation. (More details here.)

Rates to remain at rock bottom levels

Yesterday, speaking at The Australian Financial Review‘s Business Summit, Reserve Bank of Australia governor Philip Lowe joined his international counterparts, stressing that the current record low cash rate wasn’t going to rise anytime soon.

Here are a few key takeaways for investors concerned rising interest rates could impact their holding of ASX 200 shares:

The Reserve Bank is committed to continuing to provide the necessary assistance and will maintain stimulatory monetary conditions for as long as is necessary. We want to see a return to full employment in Australia and inflation sustainably within the 2 to 3 per cent target range…

An important element of our policy package is the cash rate target being set at what is the effective lower bound of 0.1 per cent. The board will maintain this setting of the cash rate target until inflation is sustainably within the 2–3 per cent range.

It is not enough for inflation to be forecast to be in this range. Before we adjust the cash rate, we want to see actual inflation outcomes in the target range and be confident that they will stay there.

Lowe added that the RBA is not only waiting for inflation to sustainably track above its target range, but also waiting for the Aussie jobs market to come roaring back.

He went on to say:

A question that investors have been grappling with recently is when will this condition for a higher cash rate be met? … For inflation to be sustainably within the 2 to 3 per cent range, it is likely that wages growth will need to be sustainably above 3 per cent…

Currently, wages growth is running at just 1.4 per cent, the lowest rate on record…

Predicting how long it will take is inherently difficult, so there is room for different views. But our judgement is that we are unlikely to see wages growth consistent with the inflation target before 2024.

This is the basis for our assessment that the cash rate is very likely to remain at its current level until at least 2024.

There you have it.

If you’ve anxiously been watching your ASX 200 shares rise and fall on the back of shifting speculation surrounding rising interest rates, you may want to give it a rest, “until at least 2024”.

ASX 200 snapshot

At the time of writing, the ASX 200 is down 0.12% for the day and is now up 1.8% in 2021.

Over the past 12 months the ASX 200 as gained 17.3%.

More reading

• Will the Afterpay (ASX:APT) share price bounce back?
• ASX stock of the day: Event (ASX:EVT) shares are shooting higher
• The Zip (ASX:Z1P) share price just keeps on falling
• Should the JobKeeper payment be replaced with discounted airfares?
• Why Afterpay, Nearmap, Temple & Webster, & Z Energy are tumbling lower

Motley Fool contributor Bernd Struben 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 Event Hospitality and Entertainment Ltd (ASX: EVT) share price is having a wild day. Event shares closed at $11.06 yesterday but opened at $11.77 this morning.  The share price has been bouncing around this level ever since, despite a quick but sharp drop to $11.31 soon after market open.

Event shares are trading at $11.74 at the time of writing, a 6.15% rise for the day. Today’s move caps off what has been a great, if volatile, year for the company. Event was hard-hit in the coronavirus-induced market crash last year. The company bottomed out at a share price of $5.44 back on 23 March 2020. But it has been onwards and upwards for Event from there. Since 23 March, Event shares are up a healthy 115% going off of today’s pricing.

So who is Event? And why are the company’s shares doing so well today?

Cinemas and resorts hard hit

Event Hospitality is, as its name implies, a company that runs hotels and movie cinemas. You have probably seen one of its cinemas in at least one of the country’s major towns and cities, given there are 142 spread across Australia, as well as New Zealand. The company also operates the Rydges, QT and Atura hotel and resort chains and the Thredbo Alpine Resort near the Thredbo ski fields.

Event can also boast the State Theatre in Sydney in its portfolio, which was originally opened in 1929 and is now one of Australia’s oldest and most famous theatres.

As you might imagine, Event was not a company that escaped the pandemic and its associated lockdowns and social gathering restrictions lightly. Just last month, Event reported that revenues were down 58% over the six months to 31 December 2020 compared with the prior period in 2019. However, the company did manage to cut costs drastically, going from burning $20 million a month over March-June to $5 million a month over the six months to December.

Why is the Event share price rising then?

Given these not-too-encouraging statistics from the company’s earnings report, why is the Event share price on the move today? It’s not just today either, actually. Event shares are up 18.2% over the past month and 22% over 2021 so far.

Well, the company has not made any major market announcements since its earnings on 18 February. Thus, we can probably put investors growing enthusiasm down to coronavirus optimism—specifically, the snowballing rollout of coronavirus vaccines around the country and the world.

Since the Christmas time Northern Beaches outbreak in New South Wales, Australia has not had a major virus outbreak. That might explain the positive year-to-date share price performance for Event. Today, we have just had an announcement of a tourism stimulus package from the federal government. This includes cut-cost airline tickets, as well as other stimulatory measures for the tourism sector. This could also be feeding into market optimism for Event as well.

Whatever the reasons, I’m sure Event shareholders are pleased with what 2021 has brought so far, especially with today’s Event share price moves. At the current price, the company has a market capitalisation of ~$1.88 billion.

More reading

• Why did the Event (ASX:EVT) share price finish higher today?

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

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Zip Co Ltd (ASX: Z1P) shares might have shocked investors this morning after falling by as much as ~7% to a one-month low of $7.79. The Zip share price has since staged a significant intraday recovery to be down just 1.78% at the time of writing. 

ASX 200 tech shares under pressure 

The S&P/ASX Information Technology (ASX: XIJ) index continues to face relentless selling pressure and is currently down nearly 2% today.

The index’s five-day performance sits at -3.20% while its one-month performance is a shocking -18.2%. This compares to the S&P/ASX 200 Index (ASX: XJO) which is down just 2.2% in the last month. 

The tech index has been dragged down by heavyweights Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) which all experienced a similar topping out pattern in mid-Feb. The three heavyweights have lost at least 20% in value since mid-Feb. 

No big issues overnight 

The Nasdaq Composite (NASDAQ: .IXIC) finished 0.04% lower overnight while the Dow Jones Industrial Average (DJX: .DJI) surged 1.46% higher into record all-time highs. US benchmark bond yields also eased to 1.52% after closing at a one-year high of 1.60% on Tuesday. 

Perhaps more importantly for the Zip share price, US buy now, pay later giant (BNPL), Affirm Holdings Inc (NASDAQ: AFRM) closed 1.38% higher. 

Why is the Zip share price so weak? 

On Thursday, there has been weakness across the board for ASX tech shares and more specifically, BNPL shares. The Afterpay share price is 4.36% lower to $110.24 at the time of writing, bringing its year-to-date returns to around -7%.

Elsewhere today, the Sezzle Inc (ASX: SZL) share price is down 3.37%, the Laybuy Holdings Ltd (ASX: LBY) share price is down 2.94%, Openpay Group Ltd (ASX: OPY) shares have fallen by 0.4% and the Splitit Ltd (ASX: SPT) share price has tumbled 1.97%. The only BNPL stock that is green today is the beaten up Humm Group Ltd (ASX: HUM). 

The Zip share price was downgraded by analysts at UBS yesterday from a neutral to sell rating. The broker was concerned about potential execution risks and additional capital requirements to grow the business. As a result, UBS slapped a $6.40 share price target on Zip. 

There could also be lingering fears after PayPal announced its plans to launch its BNPL product in Australia yesterday. 

More reading

• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Is Afterpay (ASX:APT)’s BNPL competition heating up?
• ASX 200 drops, Zip down, Afterpay soars
• Why Accent, Fortescue, Western Areas, & Zip shares are tumbling lower

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Humm Group Limited and Sezzle Inc. 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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As the JobKeeper payment wraps up, the Flight Centre Travel Group Ltd (ASX: FLT), Webjet Limited (ASX: WEB) and Qantas Airways Limited (ASX: QAN) share price are all having a party this afternoon. Especially the Flight Centre share price, which is presently up 10%.

The JobKeeper payment is coming to a close and the new package to replace it is a hot topic today. Particularly because it includes 800,000 half-priced airfares within the $1.2 billion stimulus package.

So why exactly are travel and tourism stocks rallying while the government prepares to reel in the JobKeeper payment? And what does the package look like next to US President Joe Biden’s latest stimulus?

How will half-price airfares help the economy?

Commenting on the subsidised ticket scheme, Prime Minister Scott Morrison said that the new program “…means more jobs and investment for the tourism and aviation sectors as Australia heads towards winning our fight against Covid-19 and the restrictions that have hurt so many businesses.”

Investors were happy to hear about the upcoming cash injection to the tourism industry. The Qantas share price is up 2.13% to hit $5.28 a share and the Webjet share price has flown by 4.44% to touch $6.12 at the time of writing.

In addition to the market support we’re seeing, the government is betting that the discounted ride will also get consumers out to spend money.

Prime Minister Morrison concluded: “Our tourism businesses don’t want to rely on government support ­forever… they want their tourists back.” 

Do airline tickets or cash lead to quicker spending?

Meanwhile, the US is rolling out a $1.9 trillion relief bill, which essentially puts US$1,400 in the pocket of many Americans. 

A lesson already learned in Australia is that COVID-19 stimulus checks led to a gambling surge, a similar pattern we witnessed during the 2009 stimulus package.

The National Library of Medicine performed research around that stimulus and revealed that the issued cash allowances resulted in a 26% increase in electronic gaming machine (EGM) revenues. Over $60 million in additional tax revenue for state governments was also accrued. 

It seems likely that the federal government kept this in mind when considering how to package up this round of benefits. The question is, will people take advantage of the offering? Or is it just business that is catching a break?

Foolish takeaway

While some investors are likely enjoying the rally we’re seeing with tourism stocks today, such as the Flight Centre share price gaining more than $1 a share, we’re looking at a much bigger picture.

The JobKeeper payment was an economic staple for a decent amount of time and the new stimulus package has big shoes to fill. We’ll have to wait and see if half-price airfares will be up for the challenge. 

More reading

• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Here’s why the Webjet (ASX:WEB) share price is flying
• Why Flight Centre, Qantas, ResApp, & Volpara are racing higher
• Qantas (ASX:QAN) share price rises despite fears tourism will struggle after JobKeeper
• Why the Qantas (ASX:QAN) share price is soaring today

Motley Fool contributor Gretchen Kennedy owns shares of Flight Centre Travel Group Limited and Qantas Airways Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having a volatile day and experiencing a number of ups and downs. But in afternoon trade, the benchmark index is down 0.2% to 6,698.9 points.

Four ASX shares that are dropping more than most today are listed below. Here’s why they are tumbling lower:

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 4% to $110.80. This appears to have been driven by further weakness in the tech sector amid concerns over rising bond yields. The Afterpay share price is now down 31% from the record high it reached just last month.

Nearmap Ltd (ASX: NEA)

The Nearmap share price is down 2.5% to $2.07. The catalyst for this may have been a broker note out of Citi this morning. Although the broker has retained its buy rating and $3.10 price target on its shares, it has slight concerns over rising competition in the ANZ market from Aerometrex Ltd (ASX: AMX). It suspects this was why its growth in the ANZ business was subdued during the first half.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has fallen 4.5% to $8.59 despite there being no news out of the online homewares and furniture retailer. However, this morning the Federal Government launched a major stimulus program to support the Australian tourism sector. Investors may be concerned that consumer spending could soon shift away from home improvements and back onto travel.

Z Energy Ltd (ASX: ZEL)

The Z Energy share price is down 5% to $2.48 following the release of an update to its guidance for FY 2021. According to the release, the New Zealand based fuel retailer has downgraded its operating earnings range to between NZ$235 million to NZ$245 million. Previously it was guiding to operating earnings of NZ$235 million to NZ$265 million. This has been driven by COVID-19 impacts on tourism and mobility.

More reading

• Could Australia be the next tech hub? Afterpay (ASX:APT) CEO thinks it should be
• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• 2 great ASX tech shares to buy today
• Is Afterpay (ASX:APT)’s BNPL competition heating up?

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. and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap 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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The Incannex Healthcare Ltd (ASX: IHL) share price, which has shot up 310% in the past 12 months, has remained relatively flat in today’s trade.

We take a look at the ASX healthcare share’s latest announcement on its accelerated drug study, along with its share price performance over the past year.

What did Incannex Healthcare report?

Incannex Healthcare shares are flat today after the company reported it has partnered with Monash Trauma Group to study the effectiveness of its proprietary drug on treating concussions.

The in vivo study, to be conducted on rats, will assess the “neuroprotective capability of IHL-216A”. IHL-216A combines cannabidiol (CBD) and isoflurane (or any other volatile anaesthetic agent).

Incannex designed its proprietary drug, intended to be given shortly after head injuries, to reduce secondary brain injuries.

Few athletes are as at risk of head injuries as grid iron players. And it’s the United States National Foot Ball League (NFL) that worked together with Incannex to create the model for traumatic brain injuries that will be used in the new study.

Commenting on the partnership study, Incannex Healthcare CEO Joel Latham said:

Undertaking this extensive and well-recognised animal model study, instead of the in-human proof of concept study, has the effect of reducing the overall development time and expense associated with our drug registration plan. Furthermore, the company will collect additional data from an animal study that it would not be able to compile in human studies. This additional data will inform the design and end points of our pivotal clinical trials.

The company previously reported positive results from its initial in vivo study on 15 December 2020. At that time the ASX healthcare company reported its IHL-216A drug combination was 35% more effective than CBD alone and 123% more effective than isoflurane administered alone in reducing the “Iba1 neuroinflammation marker”. 

Between 15 December and 16 February, the Incannex share price soared 53% to a 1 year high. 

Incannex Healthcare share price snapshot

Incannex Healthcare shares delivered very strong gains over the past 12 months, up 310% at the time of writing. The share price hit a 1 year high on 16 February of 26 cents per share and has since retraced to the current level of 21 cents per share.

Year-to-date the Incannex Healthcare share price is up 36%. By comparison, the All Ordinaries Index (ASX: XAO) is flat so far in 2021.

More reading

• Why the Incannex Healthcare (ASX:IHL) share price is up 15% today

Motley Fool contributor Bernd Struben 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 Nanoveu Ltd (ASX: NVU) share price is roaring higher in afternoon trade. This comes after the company announced that it has signed two international distribution agreements.

At one point, the nanotechnology company’s shares reached an intraday high of 7.2 cents. However, some profit-taking has led its shares to retrace back to 5.7 cents, up 14%.

Established in 2018, Nanoveu is focused on developing a range of products for the mobile phone and digital displays market. The company’s flagship product, Nanoshield, is an antiviral protection technology that can be applied to a number of surfaces. This includes mobile phone covers, mobile phone cases, tablets, and more.

What’s pushing the Nanoveu share price higher?

The Nanoveu share price is on the move after providing an update that could potentially boost its sales.

According to its release, Nanoveu advised that it has entered into an exclusive distribution agreement with Vital Medikal for its Nanoshield products to be delivered to the Republic of Turkey.

Nanoveu stated that while there were no product sale guarantees, a US$575,000 annual purchase target has been set for Vital Medikal to hold exclusivity rights. The agreement, effective immediately, will run for a 12-month period with an option to extend further pending a sales performance review.

With over 25 years of experience in the medical field, Vital Medikal is an established medical equipment distributor in Turkey. The company supplies crucial devices such as respirators, cathodes and pre-filled syringes to Turkish hospitals, clinics, and medical facilities.

It is believed that the Nanoshield products will complement Vital Medikal’s existing business-to-business customer base.

In addition to the first agreement, Nanoveu also signed a non-exclusive distribution deal with Asia Pro Lab for Hong Kong. The initial arrangement does not stipulate the minimum sales that are to be achieved. The non-material purchase agreement of Nanoshield will be valid for a term of 12 months and automatically renew thereafter.

Formed in 2009, Asia Pro Lab specialises in detailing and customisation of interior and exterior alterations on vehicles. The company primarily uses vinyl wrapping to suit customer needs. Adopting Nanoshield products with Asia Pro Lab enables antiviral and antibacterial protection properties within the customised works.

What did the head of Nanoveu say?

Nanoveu executive chair and CEO Alfred Chong commented:

We are continuing to see an expansion of our distribution network across the globe, which is reflective of the momentum Nanoveu has built. It is clear that there is immense desire for greater protection against bacteria and viruses and this demand is not just from first-world countries – it is from a global phenomenon.

The company will continue to target further distribution agreements in major markets, which permit greater avenues to generate sales revenue from Nanoshield products.

The Nanoveu share price has gained 42% from this time last year, but is down 18% for 2021.

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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.

The post Why the Nanoveu (ASX:NVU) share price is roaring 14% higher appeared first on The Motley Fool Australia.

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