The S&P/ASX 200 Index (ASX: XJO) hit a new record today, it ended up 1.2% to 7,180 points.

Here are some of the highlights from the ASX:

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price ended the day lower by 0.7% after giving investors an update.

Fortescue gave an Iron Bridge update saying that it’s on track to deliver 22 million tonnes per annum of high grade 67% Fe magnetite concentrate product with first production by December 2022.

The miner has made an investment to provide an enhanced product range and increase production and shipping capacity to meet strong customer demand.

Fortescue has revised its capital estimate to US$3.3 billion to US$3.5 billion, with FMG Iron Bridge Ltd’s share being US$2.5 billion to US$2.7 billion.

The joint venture has incurred capital expenditure of US$1.5 billion as at 30 April 20021, with FMG Iron Bridge’s investment being US$1.3 billion.

Fortescue said that the 67% Fe content low impurity concentrate product is anticipated to receive a premium to the Platts 65% Fe CFR Index.

The miner believes it will have a competitive cost structure with the life of mine C1 cost estimate being US$33 to US$38 per wet metric tonne (wmt) and sustaining capital expenditure of US$5 to US$7 per wmt.

Inghams Group Ltd (ASX: ING)

The Inghams share price went up around 8% after saying to investors that it expects to beat the market’s profit expectations for FY21.

Inghams said that it’s deriving benefits from operational efficiencies implemented throughout the year.

There has also been an improvement in general trading conditions as the impact of COVID-19 restrictions have decreased over the last six months, although that excludes the seven-day lockdown has just started in Victoria.

The ASX 200 share said it also received a research and development tax credit relating to a prior financial year.

Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to come in between $438 million to $448 million. Statutory net profit after tax (NPAT) is expected to be between $80 million to $87 million.

To enable comparison to pre AASB 16 figures, Inghams said underlying EBITDA is expected to be between $203 million to $213 million and underlying NPAT is expected to be between $96 million to $103 million.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price was one of the best performers in the ASX 200 today, going up more than 4%, after confirming it has received a takeover offer for its PEXA shares from KKR.

The proposal represents an enterprise value for 100% of PEXA at $3 billion plus cash on the balance sheet as at the date of settlement. At 31 March 2021 the cash balance was $126 million.

KKR said the offer is open and can be accepted until 5pm on 30 May 2021. Domain Holdings Australia Ltd (ASX: DHG) is expected to partner with KKR.

The Link board is now considering the proposal. No decision has been made yet. Both the trade sale process and exploration of the viability of an IPO continue to proceed.

More reading

• A2 Milk (ASX:A2M) shares are up 4% today. Has a bottom been found?
• These 3 shares are this week’s biggest fallers of the ASX 200
• Sell ASX 200 shares in May and go away? Not a good idea in 2021
• Breaking! ASX 200 hits another record share market high
• 2 top ASX 200 shares that might be buys today

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If small caps are too high on the risk scale for your tastes, then you might be better off looking at the mid cap space. These companies are lower down the risk scale but still have the potential to generate strong returns for investors in the future.

Two mid cap ASX shares that could be worth considering are listed below. Here’s what you need to know about them:

IDP Education Ltd (ASX: IEL)

The first mid cap ASX share to look at is IDP Education. It is a leading provider of international student placement and English language testing services.

While the lack of international travel and lockdowns have impacted IDP Education notably over the last 12 months, it is bouncing back quickly. In February, management advised that testing volumes in December were broadly in line with those experienced in the final month of 2019 prior to the pandemic.

Since then, a flare up of COVID-19 cases in key markets has derailed its recovery somewhat and could weigh on its second half performance. However, it looks well-placed to rebound again once trading conditions return to normal thanks to pent-up demand. 

Another positive for the company is that the pandemic has lessened competition. This could mean IDP Education comes out of the crisis in an even stronger market position. This bodes well for its growth in the coming years.

Analysts at Morgans are positive on the company, particularly given the pent-up demand for its services. It expects this to lead to solid earnings growth over the coming years once trading conditions return to normal. Morgans has an add rating and $28.48 price target on its shares. This compares to the latest IDP Education share price of $22.50.

Nearmap Ltd (ASX: NEA)

Another mid cap ASX share to consider buying is Nearmap. This leading aerial imagery technology and location data company’s platform allows users to undertake site visits from the comfort of their home or workplace. This provides significant time and cost savings for users.

Demand for its offering has been growing in the ANZ and North American markets in recent years and looks set to continue doing so. As a result, management is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

And while a patent infringement notice is likely to weigh on sentiment in the near term, the part of its offering under scrutiny only applies to 25% of its North American revenue. Another positive is that the news hasn’t impacted recent sales in the key market. 

Morgan Stanley remains positive on the company despite its legal issues. It has an overweight rating and $3.20 price target on the company’s shares. This compares to the latest Nearmap share price of $1.83.

More reading

• Brokers name 3 ASX shares to buy now
• Broker tips Nearmap (ASX:NEA) share price to climb 77%
• 2 ASX 200 blue chip shares that might be the best to buy
• The Nearmap (ASX:NEA) share price is down 15% this month
• Why Zip (ASX:Z1P) and these ASX growth shares are highly rated

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I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye are summarised below. Here’s what these fund managers have been buying:

Cleanaway Waste Management Ltd (ASX: CWY)

According to an initial substantial holder notice, Challenger Ltd (ASX: CGF) has been building a position in this waste management company in 2021.

The notice reveals that Challenger has been buying shares since 19 January and recently took its holding to 105,183,013 shares on 19 May. This is the equivalent of a 5.11% stake in Cleanaway.

Given that its buy price on 19 May was broadly in line with where the Cleanaway share price trades today, its analysts appear to still see a lot of value at current levels.

One broker that might agree is Macquarie Group Ltd (ASX: MQG). Its analysts currently have an outperform rating and $3.00 price target on the company’s shares. This compares to the latest Cleanaway share price of $2.77.

EML Payments Ltd (ASX: EML)

A notice of change of interests of substantial holder reveals that Commonwealth Bank of Australia (ASX: CBA) has been taking advantage of recent weakness in the EML Payments share price to increase its position.

The release shows that Commonwealth Bank (via its subsidiaries) picked up approximately 4.3 million shares over the last couple of weeks. This has increased its stake to 26,374,609 shares, which equates to a 7.3% interest. This is up from 6.1% previously.

The EML Payments share price has lost a third of its value since 15 May due to concerns over its European operations. Judging by its purchases, Commonwealth Bank appears to see this as a buying opportunity.

Analysts at UBS would agree. Last week they reaffirmed their buy rating but trimmed their price target to $5.30. The EML Payments share price ended the week at $3.42.

More reading

• Breaking! ASX 200 hits another record share market high
• 2 ASX 200 shares that could be reliable picks for dividends
• 5 things to watch on the ASX 200 on Friday
• ASX 200 flat: Costa crashes & Fisher & Paykel Healthcare tumbles
• Commonwealth Bank (ASX:CBA) share price higher on digital banking update

The post Fund managers ar buying EML Payments (ASX:EML) and this ASX share appeared first on The Motley Fool Australia.

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The A2 Milk Company Ltd (ASX: A2M) share price is one of the best performing shares on the S&P/ASX 200 Index (ASX: XJO) today. While the ASX 200 is up a healthy 1.26% today to a new record high, A2 Milk shares are doing even better.

A2 Milk is currently up 3.85% to $5.54 a share, after rising as high as $5.58 earlier in the trading day. This move will come as something of a relief for shareholders, who have had to watch the former high-flying dairy company descend to multi-year lows in recent weeks.

It was only earlier this month that A2 dropped to a ~4-year low of $5.04, meaning the shares are up close to 10% in just a fortnight. But that rise doesn’t mask the company’s disappointing performance in just the past year. It was only 10 or so months ago when this company was at a record high of $20.05. Since June 2020, A2 Milk shares have dropped close to 75%.

A series of earnings downgrades and sluggish export market to China is largely to blame. But enough crying over spilt milk, as it were. So why are A2 Milk shares surging today?

A2 Milk share price caps off the week with a bang

Well, we’ve had no major official news or announcements out of the company today, so that rules that out. A2’s last market announcement was on Tuesday, and that was just a routine notice regarding some institutional share ownership.

Therefore, today’s big share price move for A2 might just be some good old fashioned buying pressure. Investors (or perhaps one large investor) might have looked at A2 Milk shares and seen a perceived bargain, given the company’s historical valuation. As my Fool colleague James Mickleboro noted on Tuesday, A2 has been at the front of the pack for the most popular ASX trades recently.

Or perhaps, as the Fool’s chief investment officer Scott Philips discussed this week, investors might be responding to some increased broker optimism for the company.

Maybe it’s a combination of all of these factors that are helping to push the A2 Milk share price up today. Whatever the reason, I’m sure it’s welcome for A2 shareholders. On the current A2 Milk Company share price, the business has a market capitalisation of $3.96 billion.

More reading

• These 3 shares are this week’s biggest fallers of the ASX 200
• Sell ASX 200 shares in May and go away? Not a good idea in 2021
• Breaking! ASX 200 hits another record share market high
• 2 top ASX 200 shares that might be buys today
• 5 things to watch on the ASX 200 on Friday

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It’s been a good week for S&P/ASX 200 Index (ASX: XJO) shares. The index has gained 2.05% since Monday.

But these 3 stocks are proving there will always be bumps in the road for ASX-listed companies – no matter how big.

Let’s take a closer look at what’s been happening with the ASX 200’s worst performing shares this week.

3 ASX 200 shares that fell this week

Costa Group Holdings Ltd (ASX: CGC) – down 21%

Yesterday was a particularly bad day for the Costa Group share price.

It fell a whopping 23.32% over the course of the day, following its annual general meeting update.

Despite its performance during the first half being better than the previous comparable period, the market expected greater results.

The Costa Group share price is ever so slightly bouncing back today. Currently, it’s up by 0.59% with shares in the company trading for $3.39.

Right now, Costa Group has a price-to-earnings (P/E) ratio of 29.33.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) – down 12%

Despite releasing what looked to be extremely positive full year results yesterday, the Fisher & Paykel share price closed 6% lower than the previous session.

The medical device company reported a 56% increase in operating revenue and an 82% jump in net profit after tax but declined to provide any future guidance.

Fisher & Paykel stated this was because the market was too uncertain.

Right now, shares in the ASX 200 company are trading for $27.35.

The company now has a P/E ratio of 47.17.

CSR Limited (ASX: CSR) – down 7%

The CSR share price is having a bad day today, having fallen 5.4% at the time of writing.

The drop is mostly due to the building materials company’s shares trading ex-dividend. 

Having started the week swapping hands for $5.98, CSL shares are now trading for $5.57.

CSR has a P/E ratio of 19.65

More reading

• Sell ASX 200 shares in May and go away? Not a good idea in 2021
• Why BetMakers, CSR, EOS, & Fisher & Paykel Healthcare are tumbling
• Breaking! ASX 200 hits another record share market high
• 2 top ASX 200 shares that might be buys today
• Brokers name 3 ASX shares to buy now

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Despite the S&P/ASX 200 Index (ASX: XJO) pushing above 7,100 this week, darling ASX growth stocks such as Afterpay Ltd (ASX: APT) and CSL Ltd (ASX: CSL) have struggled to capitalise on move up.

While these classic ASX growth stocks are moving sideways, here are some potential new names that are surging this week.

ASX growth stocks surging this week

Alcidion Group Ltd (ASX: ALC)

The Alcidion share price jumped to highs of 41 cents on 16 April, a day after its $15.4 million capital raising at 32 cents.

Shares in the software company were likely pushing higher on the back of separate statements coinciding with the capital raising. These included a patient flow management software acquisition and a $21 million contract with the Australian Department of Defence. However, in the next few weeks, its shares eased back to lows of 35.5 cents, possibly dragged down by the discount given to capital raising participants.

This week, the Alcidion share price has surged more than 25% into record territory. Its biggest move came on Thursday where its shares closed 10% higher from 41 cents to 45 cents. Its Thursday trading session was backed by a significant volume of approximately 6.5 million shares, compared to its 10-day average volume of approximately 1.55 million.

Praemium Ltd (ASX: PPS)

Praemium is another ASX growth stock that’s making headway this week. The company provides fully integrated account management platforms for financial institutions and individual investors.

Its shares experienced a very volatile session last Friday following the departure of its CEO and board member, Michael Ohanessian. Praemium shares dipped 12% lower to 68 cents within the first 15 minutes of market open, before a V-shaped recovery to break even at 11am. By market close, its shares were trading 6% higher at 52-week highs of 82.5 cents. Wild.

The Praemium share price carried its momentum over to this week, marking 5 straight days of green. Its shares have added another 15% since last Friday, reaching a multi-year high of 96.5 cents today.

People Infrastructure Ltd (ASX: PPE)

People Infrastructure provides contracted staffing and human resources outsourcing services to a range of key industries including healthcare, mining, construction, technology and industrial.

The Australian economy has rebounded strongly, even with the end of jobkeeper wage subsidies. This month, the Australian Bureau of Statistics (ABS) reported that the unemployment rate had decreased to 5.5%. According to the ABC, Seek Ltd (ASX: SEK) said that it just recorded its second consecutive record month of job ads. The record numbers of jobs advertised could be a tailwind driving the People Infrastructure business.

The People Infrastructure share price pushed as high as 11% higher to $4.77, a new all-time record high for the company. Its shares have since slightly pulled back to $4.62 at the time of writing.

More reading

• ASX tech shares roar higher, puts ASX 200 index in the shade
• Why the Praemium (ASX:PPS) share price will be on watch tomorrow
• Why the Alcidion (ASX:ALC) share price is falling again today

The post 3 ASX growth stocks running higher this week appeared first on The Motley Fool Australia.

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The Catapult Group International Ltd (ASX: CAT) share price has come under pressure on Friday.

In late afternoon trade, the sports analytics and wearables company’s shares are down almost 5% to $2.15.

Why is the Catapult share price under pressure?

There are a couple of catalysts for the weakness in the Catapult share price on Friday.

The first is profit taking after some strong gains recently. Prior to today, the Catapult share price was up over 17% since the end of last week.

This was driven largely by investors snapping up shares after the release of its FY 2021 results on Thursday.

Although the company reported a decline in revenue, it continues to report growth in the right areas.

For the 12 months ended 31 March, Catapult posted a 7.4% decline in revenue to $67.3 million for the 12 months. This was driven by its planned shift from capital sales to SaaS deals and the severe impact from COVID delaying new business.

In respect to the former, the company’s subscription revenue growth accelerated to 12.5% in the fourth quarter. This compares to 3.3% for FY 2021 and means that its subscription revenue is now 79% of total revenue. This is up from 71% a year earlier.

What else is weighing on its shares?

As well as profit taking, a broker note could be weighing on the Catapult share price today.

According to a note out of Bell Potter, its analysts have downgraded the company’s shares to a hold rating but lifted their price target to $2.40.

While Catapult’s FY 2021 result was stronger than Bell Potter was expecting and it was pleased with the progress it is making with subscription revenues, it isn’t enough to continue with its buy rating.

The broker felt that Catapult’s shares were fully valued after yesterday’s gains and downgraded them to a hold rating.

More reading

• Brokers name 3 ASX shares to buy now
• Catapult (ASX:CAT) share price sprints 5% higher on FY21 results
• Catapult (ASX:CAT) share price falls despite delivering solid Q3 growth

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That old stock market adage ‘sell in May and go away’ tends to crop up around this time of year, for obvious reasons. It’s a crusty old proverb that no one seems to really know where it came from, or how it applies to modern investing. The idea is that May somehow represents an annual high point for share markets, including the ASX. So we should all sell all our ASX shares just before winter, and perhaps buy back in…. at some point.

You can already see the logic here is a little flimsy. But we Fools like to put our money where our mouths are. Last year, this writer looked at the historical performances for the S&P/ASX 200 Index (ASX: XJO) over a few past Mays. The result? There’s not much to write home about. But you can check out the very sophisticated visual representation here.

So is there any good reason, at all, to sell in May and go away? Given today is this May’s second-last trading day, it’s a good time to ask.

Sell in May and go away?

Well, to answer that succinctly, and perhaps definitively, here’s a couple of quotes from the great investor Warren Buffett from our friends over at Fool.com:

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.

If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.

Does that sound like Mr Buffett would endorse a ‘buy in May and go away’ investing strategy? 

Indeed, the ASX 200 has performed a coup de grâs of sorts on this idea in 2021. Any ASX 200 investor who sold their shares on 30 April would have missed out on, not one, but two new record highs that the ASX 200 has hit over the month. The first came on 11 May, and the second, just today. Indeed, the ASX 200 (at the time of writing) has managed to add a healthy 2.2% over the month so far. Unless Monday brings us one of the worst one-day selloffs ever, it’s likely that May will be a month in the green for ASX 200 shares. Case closed? Well, at least until May 2022. 

More reading

• Breaking! ASX 200 hits another record share market high
• 2 top ASX 200 shares that might be buys today
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises, Costa smashed, Fisher & Paykel drops
• The RBNZ could hike rates in 2022. Will the RBA follow suit?

The post Sell ASX 200 shares in May and go away? Not a good idea in 2021 appeared first on The Motley Fool Australia.

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The Andromeda Metals Ltd (ASX: ADN) share price is rocketing today on news of a memorandum of understanding with AEM Technologies Inc.

The agreement could see Andromeda build a facility to process halloysite-kaolin from the Great White deposit – a joint venture between Andromeda and Minotaur Exploration Ltd (ASX: MEP) – into high purity alumina (HPA).  

After reaching 8.29% higher in early trade, the Andromeda share price has slightly retreated and is swapping hands for 22 cents at the time of writing, up 7.3%.

The Minotaur share price has also taken a similar trajectory today and is currently up 4.55% trading at 11.5 cents after a 9% peak near the open.

Let’s take a look at today’s news from the company.

Andromeda’s potential new kaolin venture

Andromeda has entered into an understanding with AEM to use the tech company’s patented process to make HPA using kaolin.

AEM produces HPA for high growth markets, including the lithium-ion battery sector. Its Canadian facility, where it undertakes the process, is the only one in the world capable of producing HPA at 99.99% purity from kaolin.

If all goes to plan, Andromeda will build a facility in Australia to produce HPA using AEM’s patented method and kaolin from the Great White deposit.

Andromeda and AEM will also consider entering into a commercial arrangement to sell Andromeda’s future HPA products through AEM’s distribution network.

The memorandum of understanding will be exclusive for 90 days. During this time, Andromeda will carry out due diligence and testing on AEM’s HPA process.

A large sample of Great White kaolin will also be sent for testing at AEM’s Canadian facility.

Kaolin samples from Andromeda’s wholly-owned Mount Hope Project will also be tested to see if they’re a suitable HPA feed resource.

According to Andromeda, AEM is planning to build an HPA plant in the United Kingdom. This means Andromeda could use the UK plant’s plans as a template to build its own.

Commentary from management

Andromeda managing director James Marsh commented on the MOU, saying:

We have known for some time that our kaolin feed was a premium material for HPA production, but we have taken our time in order to be extremely thorough in identifying the right partner to drive this opportunity forward. Andromeda considers that having access to proven commercial technology in this sector will allow us to fast-track this HPA opportunity towards commercialisation.

AEM CEO Julian Ford added:

Access to Andromeda Metals’ high quality kaolin projects will help AEM in its goal to be the preferred supplier of HPA to the world’s new Electric Vehicle’s Lithium-Ion Battery giga-factories and global LED manufacturers.

Andromeda share price snapshot

The Andromeda share price has fallen 28.29% since the beginning of this year but is up 270% over the last 12 months.

Andromeda has a market capitalisation of around $442 million, with approximately 2 billion shares outstanding.

The Minotaur share price is also struggling on the ASX this year, down 38.84% year to date. Despite a hard 2021, Minotaur shares have also made significant gains in the past 12 months, up 140% since this time last year.

Minotaur has a market capitalisation of around $55 million, with approximately 501 million shares outstanding.

More reading

• Why the Andromeda (ASX:ADN) share price is on the rise
• Andromeda Metals (ASX:ADN) share price falls despite project update

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The Austal Limited (ASX: ASB) share price is rising today following the successful completion of acceptance trials by its newest ship.

At the time of writing, the shipbuilding group’s shares are trading at $2.38, up 1.06%

Completion of acceptance trials

Investors are pushing the Austal share price higher after the company released a positive update.

According to today’s announcement, the future USS Savannah has completed acceptance trials in the Gulf of Mexico. The new naval vessel is the 14th Independence-class littoral combat ship (LCS) built by Austal for the United States Navy.

Acceptance trials consist of a number of tests conducted by Austal’s US team while the vessel is at sea. These include assessing the ship’s major systems and equipment for warfighting capabilities, before delivery proceeds.

According to the company, the new combat ship is a high-speed, shallow-draft surface combatant with an aluminium trimaran hull that provides class-leading, multi-mission capability. The ship is designed to defeat littoral threats and provide access and dominance along coastal waters. In addition, the vessel has flexibility to execute surface warfare, mine warfare and anti-submarine warfare missions.

The new naval vessel is scheduled for delivery to the US Navy late next month.

The future USS Savannah will be homeported in San Diego, along with the other 13 Independence-class LCSs.

Austal CEO Paddy Gregg commented:

The successful completion of acceptance trials for Savannah, in the same week as the commissioning of [the USS] Mobile, clearly demonstrates the capabilities of the Austal USA team to deliver multiple naval ship programs for the US Navy, productively and efficiently.

Austal said its US Independence-class LCS program is running at a full rate of production, with four ships under construction. The future USS Canberra is in its final assembly and readying for launch on 5 June. Furthermore, the USS Santa Barbara is also in the final stages of its assembly, while fabrication works are being done on USS Augusta and USS Kingsville. The future USS Pierre is expected to begin fabrication later this year.

About the Austal share price

Austal shares have fallen by more than 20% over the past 12 months. The company’s shares hit a 52-week high of $3.86 in June 2020, and a multi-year low of $1.98 in March this year. 

On valuation metrics, Austal has a market capitalisation of about $853 million, with around 359 million shares on issue.

More reading

• Austal (ASX:ASB) share price edges higher amid acquisition rumours
• Here’s why the Austal (ASX:ASB) share price is in the spotlight today

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