At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has recovered from a soft start and is charging notably higher. The benchmark index is currently up 1.1% to 7,158.4 points.

Here’s what is happening on the market today:

A2 Milk crashes lower after downgrading its guidance

The  A2 Milk Company Ltd (ASX: A2M) share price has crashed to a multi-year low after downgrading its FY 2021 guidance once again. This downgrade was due largely to weakness in the daigou channel and significant inventory issues. The infant formula company now expects revenue of NZ$1.2 billion to NZ$1.25 billion for FY 2021 with an earnings before interest, depreciation and amortisation (EBITDA) margin of 11% to 12% (excluding MVM transaction costs). At the mid-point of its guidance range, this will be EBITDA of NZ$140 million, down 74.5% on FY 2020’s result.

Crown-Star merger

The Crown Resorts Ltd (ASX: CWN) share price is charging higher today after Star Entertainment Group Ltd (ASX: SGR) tabled a conditional, non-binding, indicative merger proposal. Although the offer is at a nil-premium share exchange ratio of 2.68 Star shares per Crown share, Star estimates that its pro forma share price is more than $5.00 per share. This implies a price in excess of $14.00 per Crown share, which was a 15.5% premium. Crown is considering the offer and also an improved bid from Blackstone.

Woolworths Endeavour demerger

The Woolworths Group Ltd (ASX: WOW) share price is pushing higher today after finalising plans to demerge its Endeavor Drinks business. If approved and implemented, the demerger will create two independent and leading ASX-listed companies. Woolworths also revealed that, subject to trading conditions and Board approval, $1.6 billion to $2 billion could be returned to shareholders if the demerger goes ahead.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Crown share price with an 8% gain. It is closely followed by the Star share price with an 7.5% gain following the merger proposal. The worst performer has been the a2 Milk share price with a disappointing 10% decline following its guidance downgrade.

More reading

• Centuria Industrial (ASX:CIP) share price falls despite lease extension
• Woolworths (ASX:WOW) share price rises on Endeavour demerger update
• Star (ASX:SGR) and Crown (ASX:CWN) shares on watch amid $12bn merger proposal
• ASX 200 Weekly Wrap: Bank shares push ASX 200 towards all-time high
• A2 Milk (ASX:A2M) share price in danger after downgrading guidance again

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of Woolworths 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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Centuria Industrial REIT (ASX: CIP) shares are edging lower in morning trade. At the time of writing, the Centuria Industrial share price is trading 0.43% lower to $3.495. This comes despite the company providing a positive update on one of its lease agreements.

Centuria Industrial is an S&P/ASX 200 Index (ASX: XJO) listed Australian pure-play industrial real estate investment trust (REIT), with a portfolio of industrial assets across the nation.

In total, Centuria Industrial owns 61 investment properties worth more than $2.6 billion. The average occupancy rate of its industrial assets stands at 98.8% with an overall weighted average lease expiry (WALE) of 9.7 years, as at 31 March.

Below we take a look at Centuria’s latest leasing announcement.

What was announced?

The Centuria Industrial share price is edging lower in morning trade despite the company reporting that Woolworths Group Ltd (ASX: WOW) has doubled its leasing agreement at 2 Woolworths Way, Warnervale New South Wales.

The new agreement brings the weighted average lease expiry (WALE) with Woolworths at the distribution centre to 10.2 years.

Commenting on the lease extension, CIP Fund Manager Jesse Curtis said:

We see growing market demand for leasing of food logistics assets reflecting increasing consumer demand for fresh food and rise of food-related e-commerce. This is a structural trend we identified when we took over management of CIP in 2017 and have since focused on leveraging in this area, by adding strategic food-related assets to our portfolio and securing long-term leases with blue chip tenants.

Our Warnervale lease extension is a testament to this strategy. It builds on CIP’s acquisition of $214 million worth of cold storage assets and $236 million of food manufacturing facilities since FY19 – all of which are delivering significant value and attractive returns for CIP unitholders.

The company reported that the WALE of its New South Wales portfolio has increased from 3.7 years in July 2020 to 5.9 years in April 2021. Of Centuria Industrial’s assets, 26% are located in NSW, worth $686 million.

Centuria Industrial share price snapshot

Over the past 12 months, the Centuria Industrial share price is up by around 32%. That just edges out the 31% gain posted by the ASX 200.

Year to date, Centuria Industrial shares have more than doubled the returns from the ASX 200 and are up 13% so far in 2021.

More reading

• Woolworths (ASX:WOW) share price rises on Endeavour demerger update
• ASX 200 Weekly Wrap: Bank shares push ASX 200 towards all-time high
• Wrong… but still right!
• 2 reliable ASX 200 shares offering good income
• 2 fantastic blue chip ASX 200 shares rated as buys

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The idea of making a wrong move with your money and losing what you worked so hard to earn can induce anxiety and fear. It can be so crippling, in fact, that you take no action at all in order to avoid potential regret.

You probably know investing in the stock market is one of the best ways to grow your savings and secure your future. The logical center in your brain is encouraging you to take that first step and put some money to work. But the emotional part of your brain keeps holding you back.

Here are five ways to conquer your stock market fears.

1. Stop visualizing the worst-case scenario

It’s easy to visualize stock market crashes. Big crashes like we saw in 2001, 2008, and 2020 make the headlines — and not just in the financial section. We hear about crashes more than anything else related to the stock market, and we remember them whenever we think about the general idea of “the stock market.”

This is the information the average beginner investor has about the stock market after consuming media for their entire life. The truth is that the average day, week, or month in the stock market is pretty boring. But boring doesn’t make for good headlines.

It’s important to consider what’s typical of a stock investment. Sure, consider the extremes, but don’t focus on them.

Thinking the stock market will crash as soon as you invest is like thinking you’ll win the lottery when you buy a ticket. Neither are very likely, but by focusing on them, you give them more weight than their mathematical probability, ultimately leading to subpar financial decisions.

2. There’s no need to be afraid of being wrong

You need to separate your decision to invest from the outcome of that decision. What that means is that if you invest today and then stocks tumble over the next few weeks, that doesn’t mean you made a bad decision. It means you had a bad outcome.

Bad outcomes will happen. The important thing to assess is whether you made a smart decision given the information you had at the time. That’s what you can control.

The best poker players in the world don’t win every hand they play. They make decisions based on imperfect information. If they keep playing hands and making good decisions, they win money over time.

There’s no need to regret a decision with a bad outcome if you would make the same decision again with the same information available. Keep making those good decisions, and ultimately the market will pay you for it.

3. Change your point of view

Imagine you’re advising someone else what to do with their money, instead of trying to make the decision for yourself. Doing so can help you focus on the logical reasons for investing instead of any emotional baggage you might be bringing to the table.

Another point of view to consider is your future self. What would your future self want your present self to do with their money? After all, when you’re saving and investing, you’re not doing it for your present self; you’re doing it for your future.

Just make sure you follow your own advice.

4. Change your frame

Have you watched the stock market climb ever higher since the coronavirus crash in March of 2020? If you’re referencing market prices based on their 2020 lows, you’ll never pull the trigger and invest.

The past doesn’t matter in investing. Stock prices are based entirely on future expectations.

By changing your reference point to today’s prices instead of what prices were in the past, you’ll be able to make a decision more easily. Don’t get caught up in trying to time the market or get the best price on a stock. A great stock trading at a good price is good enough for Warren Buffett, and it should be good enough for you too.

Another frame people often fall into is weighing potential gain versus potential losses. People are averse to taking risks for potential gains, but they will seek out risk if they’re otherwise guaranteed a loss. 

Take advantage of that psychological tick by thinking about your lost opportunity from choosing not to invest. If you could reasonably expect your investment to double over the next decade, think of it like losing your entire savings if you wait to invest for 10 years. That’s the opportunity cost of waiting.

5. Consider your next-best alternative

If you didn’t invest the money you’re saving, what would you do with it?

If you put it in a savings account, you’ll earn less than 1% at today’s rates. Inflation will eat away at any gains you earn on your principle.

Maybe you don’t want to save the money at all, instead spending it on a vacation or home improvements. Is that really a good use of the money, though? Maybe; maybe not.

The stock market offers the most accessible way to substantially grow your savings over time. By all means, consider your alternatives, but finding a better option for your money will be very difficult.

If and when you can’t find a better alternative for your money, you’ll probably be ready to invest it in the stock market.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• The Novonix (ASX:NVX) share price jumps 12% on potential US listing
• AMP (ASX:AMP) share price edges higher as buy-back commences
• Up 21%, why the Bod (ASX:BDA) share price is smoking the market today
• These are the 10 most shorted shares on the ASX
• PointsBet (ASX:PBH) share price lifts on acquisition news

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Novonix Ltd (ASX: NVX) share price has soared after the company announced it will explore the secondary trading of its shares on the Nasdaq Composite (INDEXNASDAQ: .IXIC). 

At the time of writing, the Novonix share price is trading at $2.36, up 11.8%.

Novonix share price higher on potential dual listing 

Novonix has submitted a draft registration statement to the US Securities and Exchange Commission (SEC) for the potential initial public offering (IPO) of American Depository Shares (ADS) and concurrent listing of ADSs on the Nasdaq.

The company advises that the number of ADSs offered and underlying Novonix ordinary shares to be issued have yet to be determined. The price for such instruments and the timing of the offering are also undecided at this stage. 

The prospect of a dual listing is currently subject to factors including the SEC review process, market conditions, investor demand and shareholder approval. 

Why seek a dual listing?

Companies seek to list on more than one exchange primarily for the opportunity to raise more capital. In the case of many ASX shares, listing in the US means access to the world’s largest economy and a deep pool of investors. 

This would make sense for Novonix, as a highly prospective but loss-making battery producer. The company is developing a cathode manufacturing method expected to represent approximately 30% of the cost of a battery cell.

Novonix is currently expanding its staff and scope while beginning expansion plans for the next phase of pilot synthesis capability for larger volumes. 

To fund its development and commercialisation plans, the company successfully raised $115 million on 25 February. The proceeds of the funds will be used to increase the scale of its anode material production up to 10,000tpa. The company believes that at 2,000tpa of anode, it will be able to secure multi-year contracts and generate healthy free cash flow to support growth.

Despite its disruptive technologies and aspirational growth, there are still significant capital outlays needed to complete research milestones and expand manufacturing capabilities. In the first half of FY21, the company reported a net loss of $10.7 million. 

From a funding perspective, a dual listing does make sense. And investors appear to be pleased with the announcement, judging by today’s Novonix share price increase of almost 12%, at the time of writing.

Should the dual listing be successful, Novonix will join its lithium peer, Piedmont Lithium Inc (ASX: PLL) on the Nasdaq. 

More reading

• These could be the next up and coming ASX lithium shares
• Novonix (ASX:NVX) share price takes a 5% hit despite quarterly results
• Why the Piedmont Lithium (ASX:PLL) share price is sliding 7% today
• What’s happening with the Novonix (ASX:NVX) share price today?

Motley Fool contributor Kerry Sun 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 AMP Ltd (ASX: AMP) share price is inching higher this morning. The price movement comes after the financial institution advised it will be commencing the $200 million share buy-back it first announced in August last year.

At the time of writing, shares in the company are trading at $1.0775 – up 0.23%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.85% higher.

Let’s take a closer look at the buy-back.

AMP buys back shares

In a statement to the ASX this morning, AMP said it will commence its share buy-back program today.

AMP will buy the shares on the market. According to the statement, the plan is subject to market conditions and “other relevant factors”. The company also reserves the right to cancel the buy-back at any time.

The Australian Securities and Investment Commission (ASIC), says an on-market buy-back does not need any prior approvals from the regulator, as long as no more than 10% of equity is purchased with 12 months, known as the 10/12 rule. Given AMP has a market capitalisation of $3.7 billion, the $200 million buy-back is well under that 10% limit.

The financial giant is funding the purchase through cash on hand. Back in August, AMP had $1.4 billion in “surplus capital” and committed to returning $544 million back to its shareholders. $344 million was paid via a special dividend at the time. The company postponed the buy-back until it was able to conduct a portfolio review, which it completed in April this year.

Investors are responding mildly positively to the buy-back finally commencing, judging by today’s AMP share price moves.

AMP share price snapshot

The AMP share price recently sank to a new 52-week low after shareholders voted to approve a merger between its Diversified Property Fund (ADPF) and another fund run by DEXUS Property Group (ASX: DXS).

In more substantial news, the financial institution announced it would demerge its asset management business and thus, abandon its plans to sell AMP Capital to Ares. As well, the group recently saw its CEO resign and be replaced by the Deputy CEO of Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Over the past 12 months, the AMP share price has sunk by around 25%. It’s fallen an even greater 31% since the beginning of this year. The company’s share price is now trading below what it was during the COVID induced market sell-off in March last year.

More reading

• AMP (ASX:AMP) narrowly avoids second strike on remuneration
• Why the AMP (ASX:AMP) slumped to a new 52-week low
• AMP (ASX:AMP) share price down, facing shareholder revolt this week
• Could value finally be emerging for the embattled AMP (ASX:AMP) share price?
• History is on the side of the battered AMP (ASX:AMP) share price as it plans its demerger

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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The Bod Australia Ltd (ASX: BDA) share price is smoking the ASX today following the release of a positive sales update.

At the time of writing, shares in the cannabis healthcare company are trading 21.6% higher at 45 cents. In comparison, the All Ordinaries Index (ASX: XAO) is 0.56% in the green, sitting at 7,338 points.

What’s driving the Bod share price higher?

Investors are fighting to get a hold of Bod shares after the company advised it has achieved its highest ever month of medicinal cannabis sales.

In total, 1,789 MediCabilis prescriptions were fulfilled in Australia during the month of April. This represents an 11% increase on the previous record month, in which March delivered 1,617 prescriptions. For the FY21 period, the company has sold 9,519 units, marking a 138% jump on FY20 levels.

Roughly 27% of the total special access scheme category B prescriptions were filled across Australia last month. Overall, this category accounted for 6,682 completed prescriptions, reflecting continued momentum.

Bod stated that 64% of the sales orders dispensed in April came from repeat prescriptions. This highlights patient and physician product satisfaction while generating consistent and recurring revenue.

Bod CEO Jo Patterson touched on the company’s performance, saying:

MediCabilis volumes continue to grow at a very pleasing rate and the recent prescription sales growth further highlight Bod’s ability to generate strong revenues across one of the company’s two core operating divisions.

The company has a number of new products in the pipeline that will be launched imminently. We anticipate that the introduction of new products and scale up of operations across both business divisions will unlock considerable value for shareholders.

Bod share price review

Despite today’s meteoric rise, Bod share price has lost 6% since the beginning of 2021. It’s worth noting though, the company’s shares mostly accelerated at the back end of last year, before recently treading lower.

Based on today’s prices, Bod presides a market capitalisation of about $39 million, with approximately 105 million shares on issue.

More reading

• ASX 200 Weekly Wrap: Bank shares push ASX 200 towards all-time high
• Here’s why the QuickFee (ASX:QFE) share price is zooming 28% higher
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Why the Prospa (ASX:PGL) share price has surged 7%
• ABS data shows Australians maintained wealth during COVID

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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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Tassal Group Limited (ASX: TGR) has become the most shorted share again despite its short interest falling week on week to 9.6%. This seafood company has been targeted due to weak salmon prices and concerns that China might slap duties on Australian produce.
• Resolute Mining Limited (ASX: RSG) has seen its short interest ease week on week to 9.4%. Short sellers have been going after this gold miner due to its weak production, disappointing guidance, and (now resolved) political issues relating to its Bibiani operation in Ghana.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest jump significantly to 9.4%. Short sellers have been increasing their positions in this online furniture and homewares retailer since it announced plans to invest materially in its growth at the expense of profit margins.
• Kogan.com Ltd (ASX: KGN) has also seen its short interest jump week on week to 9%. Short sellers have been piling in amid concerns over inventory issues, discounting, and its slowing sales growth.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 8.9%, which is down slightly week on week once again. The travel agent’s shares have come under pressure since it revealed that its second half loss is expected to be as large as the one recorded in the first half. This was materially more than the market anticipated.
• Webjet Limited (ASX: WEB) has seen its short interest ease notably to 8.4%. The online travel agent has been targeted due to concerns over its valuation and the travel market’s stuttering recovery.
• Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is flat week on week. The recent exit of its CEO and concerns over its contract discussions with Woolworths Group Ltd (ASX: WOW) appear to be weighing on sentiment.
• Megaport Ltd (ASX: MP1) has short interest of 7.8%, which is up again week on week. This high level of short interest appears to have been driven by concerns over the premium its shares trade at compared to the market average.
• Metcash Limited (ASX: MTS) has seen its short interest edge lower to 7.3%. Investors may be concerned by reports that trading conditions are reverting back to normal again in the supermarket industry. This could mean it gives back market share to the big two.
• Zip Co Ltd (ASX: Z1P) has short interest of 6.9%, which is down week on week. Valuation concerns and international expansion execution risks appear to be the main reason for this high level of short interest.

More reading

• ASX 200 Weekly Wrap: Bank shares push ASX 200 towards all-time high
• These were the best performing ASX 200 shares last week
• 3 quality mid cap ASX shares rated as buys
• Are there buying opportunities among ASX COVID fallen stars?
• Insiders have been buying Breville (ASX:BRG) and this ASX share

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 and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Kogan.com ltd, MEGAPORT FPO, 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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PointsBet Holdings Ltd (ASX: PBH) shares are on the move this morning after the company provided some acquisition news. In early trade, the PointsBet share price is trading 3.54% higher at $14.04.

Let’s take a closer look at the company’s news.

What’s driving the PointsBet share price?

The PointsBet share price is responding positively after the company revealed it is acquiring United States-based account wagering provider Premier Turf Club for US$2.9 million. Premier Turf Club is an active pari-mutuel Advance Deposit Wagering (ADW) operator with a license to operate in Oregon. The company provides legal telephone and online betting services, handling over $375 million in wagers through its online platform since 2007. 

Pari-mutuel betting, also known as pool betting, takes a different spin on the traditional customer vs. bookmaker style of betting. Instead of going against the bookmaker, customers are placing wagers against other bettors who have placed wagers on the same event. All wagers go into a pool, and the pool is shared equally between those who win. A small percentage of total wagers is deducted for the house. 

PointsBet believes Premier Turf Club’s extensive industry expertise and relationships, customer-focused operations, and excellent reputation will be of immediate value for the company and its growth aspirations in the United States. 

The racing industry in the US generates more than US$12 billion in turnover annually. PointsBet aims to be at the centre of innovation and premium products within the US horse racing market. The addition of Premier Turf Club adds to the company’s growing portfolio of proprietary wagering products which already includes its fixed-odds sportsbook and online casino. 

Management commentary 

PointsBet USA CEO Johnny Aitken commented on the acquisition, saying: 

The combination of Premier Turf Club’s excellence in the space with PointsBet’s mature market Australian racing expertise favourably positions us as we prepare to enter the U.S. horseracing market. Today’s noteworthy acquisition complements our inhouse approach while growing our premier product suite, and we are excited to welcome Premier Turf Club to the PointsBet team.”

PointsBet share price snapshot

The PointsBet share price is currently trading around 19% higher in 2021 and has also climbed by 231% over the past 12 months. Based on its current valuation, PointsBet has a market capitalisation of around $2.5 billion.

More reading

• Top brokers name 3 ASX shares to buy next week
• 2 fantastic ASX growth shares that this leading broker loves
• PointsBet (ASX:PBH) share price slumps despite US iGaming launch
• Young investors OK with ASX shares peddling gambling, tobacco, porn
• Why Dubber, PointsBet, Starpharma, & Westpac shares are storming higher

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 and recommends Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 De Grey Mining Limited (ASX: DEG) share price has started the week positively.

In early trade, the gold explorer’s shares were up 5% to $1.56.

This latest gain left the De Grey Mining share price trading within touching distance of its record high of $1.67.

Why is the De Grey Mining share price rising?

Investors have been buying the company’s shares this morning following the release of an update on drilling activities at the Aquila zone at its Hemi prospect in Western Australia.

According to the release, the metallurgical testwork results from the Aquila zone have revealed high gold recoveries that are consistent with the positive results previously achieved from the Brolga zone.

This work was conducted on twelve individual composites representing oxide, transition and primary mineralisation and one bulk composite comprising primary mineralisation.

The samples were sourced from the top 200vm of the Aquila zone early in the drilling program. Additional samples of oxide, transition and primary mineralisation will be collected from the Aquila zone for further testwork as necessary and as studies progress.

“Encouraging”

De Grey Mining’s Managing Director, Glenn Jardine, appeared to be pleased with the results and described them as “encouraging.”  

He commented: “The new metallurgical testwork results on oxide, transition and primary mineralisation from the Aquila zone at Hemi are encouraging. These results from Aquila are consistent with the positive results previously achieved from the Brolga zone at Hemi.”

“Our ongoing metallurgical testwork program continues to provide confidence in the multiple pathways available to achieve high gold recoveries from Hemi and the regional deposits across the Mallina gold project.”

“Each of the three potential oxidation processes has delivered high gold recoveries for the Brolga and Aquila zones. Each of the oxidation processes will be carried forward into future testwork. Further testwork and trade off studies underway will enable the Company to optimise the various aspects of our metallurgical testwork program in terms of capital, operating costs, recoveries and operability,” he concluded.

More reading

• Carnaby (ASX:CNB) share price strikes gold and shoots 14% higher
• Great Boulder (ASX:GBR) share price surges 80%. Here’s why
• Why De Grey, Infomedia, Northern Star, & SEEK shares are storming higher
• ASX 200 up 0.2%: SEEK hits record high, Flight Centre tumbles
• De Grey (ASX:DEG) share price rockets 11% on latest update

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 De Grey Mining (ASX:DEG) share price is charging 5% higher appeared first on The Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Moderna‘s (NASDAQ: MRNA) success story is all about its coronavirus vaccine. The product generated a whopping $1.7 billion in revenue in the first quarter and brought the company its first ever quarter of profitability. This is big — especially considering Moderna didn’t have any commercialized products until regulators authorized the vaccine in late December.

Investors are hoping this is just the beginning of Moderna’s coronavirus vaccine revenue growth. It should be. Experts say the virus is here to stay. And Moderna is ramping up to produce 3 billion doses next year. But one threat to revenue could be on the horizon. And it has to do with the potential waiving of vaccine patent protection. But is this really a threat? Let’s take a closer look.

A controversial proposal

This week, the U.S. said it would support a controversial proposal to waive vaccine patent rights to ramp up the production of doses globally. Now, all World Health Organization members must weigh in on the issue. Meanwhile, shares of Moderna slipped 8.6% this past week. Some investors were concerned that a potential approval of such a proposal would hurt Moderna’s ability to generate future revenue from its vaccine.

From an intellectual-property point of view, waiving patent rights may set an unwanted (at least by healthcare companies and their shareholders) precedent. That’s because it may make it easier for countries to repeat the move in the future. And in some cases, that could weigh on a company’s ability to generate revenue from a product.

But the Moderna story is a bit different. Here’s why: Moderna could easily hand over instructions to make its mRNA vaccine. In fact, last fall the company said it wouldn’t enforce its COVID-19 patents during the pandemic.

But this doesn’t mean anyone else can actually produce the vaccine. Imagine trying to make your grandmother’s signature cake recipe. But you don’t have access to the key ingredients, the right pan, or even a proper oven. That’s similar to the situation of potential vaccine makers if they hope to replicate the Moderna vaccine.

The CEO comments

In Moderna’s earnings report on Thursday, CEO Stephane Bancel said a possible waiver “doesn’t change anything for Moderna” and added:

There is no mRNA in manufacturing capacity in the world. This is a new technology. You cannot go hire people who know how to make the mRNA. Those people don’t exist.

Bancel is right. The skilled workers, the manufacturing processes and equipment, and the production scale-up are roadblocks potential producers are unlikely to move past. And even if a rival decided to dive in and give it a try, the effort would take an extraordinary amount of time and money. That’s because Moderna’s original effort took a lot of time and money too.

Moderna may look like an overnight success. After all, it brought the coronavirus vaccine to market in about nine months. But the company has been working on mRNA technology for years. And government investment of $2.5 billion wasn’t just an order for doses. Some of the funds helped Moderna develop the vaccine and build up manufacturing capacity over the past year.

So, for a patent waiver to actually hurt Moderna, governments would have to help potential vaccine makers by investing in manufacturing facilities and raw material production. They would have to help companies create processes and train workers. It seems very unlikely such a scenario will play out.

The potential patent waiver isn’t a threat to the Moderna vaccine. Whether it’s approved or not, Moderna is likely to remain in control of its product well into the future. And from what we can see so far, Moderna’s vaccine profit prospects remain strong. The company is in discussions for 2022 orders with all countries that ordered vaccines this year. And all of this means investors shouldn’t worry about any dips in the biotech company’s share price related to vaccine waiver news.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Moderna just made the Pfizer vaccine’s biggest weakness an even bigger one
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Moderna Inc. 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 Should you worry about this threat to Moderna’s vaccine? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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