• Why is the Brainchip (ASX:BRN) share price jumping today?

    The Brainchip Holdings Ltd (ASX: BRN) share price is rebounding today from its massive slump yesterday, where it lost nearly 10%.

    The Brainchip share price is up 5.6% to 60.5 cents per share at the time of writing.

    Brainchip is focused on the development of software and hardware-accelerated solutions for advanced artificial intelligence (AI) and machine learning applications.

    Brainchip’s advanced artificial intelligence

    These advanced artificial intelligence solutions are called neuromorphic computing. Neuromorphic computing is a branch of artificial intelligence (AI) that simulates the functionality of the human neuron. Essentially, Brainchip is trying to replicate the way the human brain learns and relates information in a computer chip.

    The company has developed a revolutionary spiking neural network (SNN) technology, a type of neuromorphic computing that learns autonomously, evolves and associates information just like the human brain.

    Brainchip’s primary product is its Akida Neuromorphic Processor Unit, which is a hardware product.

    Brainchip’s Neuromorphic Processor starts production

    The company released huge investor news two days ago when it confirmed that it has begun volume manufacturing of its aforementioned Akida AKD1000 neuromorphic processor chip for edge AI devices.

    ‘Edge’ in AI means that the AI program runs on the device itself and not on a cloud-based server.

    BrainChip CEO Peter van der Made welcomed the news.

    I am grateful to our engineering team, who worked hard over the past eight months to release the Akida technology for volume production, and to our EAP customers that have helped lead us to market readiness.

    This move to manufacturing is a major milestone for BrainChip and for the industry at large as the first realistic opportunity to bring AI processing capability to edge devices for learning, enabling personalization of products without the need for retraining.

    Brainchip share price snapshot

    Brainchip investors also liked the news and sent its share price rocketing 19% that day, before a few appeared to immediately sell their interests the next day, culminating in a 9% drop.

    Overall, the Brainchip share price has gained 9% this week, 6% the past month, 37% in 2021 so far and 1,307% over the past 12 months.

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    Motley Fool contributor Lucas Radbourne-Pugh 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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  • Strike (ASX:STX) share price freefalls 9% on capital raising efforts

    falling asx share price represented by business man wearing box on his head with a sad, crying face on it

    The Strike Energy Ltd (ASX: STX) share price has come out of a trading halt today following the company’s successful placement. While Strike is pleased with the latest capital raising efforts, its shares have plummeted 9.33% to 34 cents.

    Let’s take a closer look and see what Strike updated the ASX with.

    Why is the Strike share price in negative territory?

    A major catalyst for Strike shares sinking could be investor concerns about the impending dilution of shares.

    According to its release, Strike advised it has received binding commitments from an array of institutions to raise $75 million. The strongly supported placement primarily came from local and international institutions, as well as other professional and sophisticated investors.

    The placement will see 250 million new ordinary shares created at an issue price of 30 cents apiece. Strike will use its existing placement capacity under listing rule 7.1. This allows up to 15% of its shares to be issued without shareholder approval. The new shares will rank equally with Strike’s existing ordinary shares.

    Strike recently announced a share purchase plan (SSP) to raise up to $5 million from eligible shareholders. The issue price was listed as the same offered in the placement.

    Together, the company is seeking to raise $80 million (before transaction costs) to fund its transformation strategy. In addition, Strike is also allocating $10 million of its existing cash, further boosting funding reserves.

    The proceeds will be used to delivered a number of strategic objectives, that include:

    • project construction of Phase 1 of the Greater Erregulla project at West Erregulla
    • gas resource addition in the Erregulla region via the 2D major seismic campaign and drilling of South Erregulla
    • geothermal testing for the proposed Mid-West Geothermal pilot
    • progressing the pre-FID milestones for the Project Haber proposed fertiliser development
    • general working capital and corporate purposes.

    Both the placement and the SPP’s new shares are expected to be allotted on Friday 23 April 2021.

    Management commentary

    Strike managing director Stuart Nicholls commented:

    This highly successful capital raise, that attracted exceptionally strong demand, is an acknowledgment of the unique investment opportunity that is Strike as the company commences its transition to a fully integrated energy, renewable power and fertiliser company.

    This raising marks the first time in 18-months since the discovery of West Erregulla that the Company has sort to raise capital from the equity markets. It also comes at a more than 30% premium to the last raise, which indicates the speed and quality of project delivery by the Company in the intervening period.

    About the Strike share price

    Over the past 12 months, the Strike share price has jumped more than 180%, and is up 30% year-to-date. The company’s shares recently reached an all-time high of 39.5 cents before being hit hard today.

    Based on valuation grounds, Strike commands a market capitalisation of roughly $645.8 million, with 1.7 billion shares on issue.

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  • COVID recovery “far better than expected” says NAB (ASX:NAB) CEO

    NAB CEO Ross McEwan

    The National Australia Bank Ltd (ASX: NAB) is seeing clear and widespread signs of businesses recovering from the coronavirus pandemic that drove last year’s recession.

    NAB’s CEO Ross McEwan shared the news in his opening statement to the House of Representatives’ Standing Committee on Economics this morning.

    Business owners and investors can now be reassured that the CEO of Australia’s largest business bank believes the country’s recovery is even better than he expected it to be.

    ASX investors can rejoice, NAB affirms Australia’s recovery

    McEwan told the House of Representatives that businesses will be the most important factor in Australia’s recovery.

    He said NAB is currently approving more business loans that the banking giant was before the pandemic. Also, the bank’s latest monthly business survey has shown business conditions are at a record high.

    “I see this when I visit customers around the country. They are more confident, and they are looking to expand. Others, particularly farmers, are choosing to pay off their loans faster – a trend we have seen previously in good times,” McEwan told the House of Representatives.

    McEwan stated that, of the 130,000 business loans and mortgages NAB had paused in 2020, over 98% are no longer on deferral.

    While the news will put a spring in the step of many Australians, McEwan warned not to get too excited just yet.

    “The data we have is short term,” he said.

    “We are only months into the recovery. Challenges and uncertainty do remain. While most of our customers are back on track, some sectors such as hospitality, transport, professional services and tourism continue to hurt because of COVID and more recently the floods and the cyclone in WA.”

    NAB CEO’s advice to the government

    McEwan said government support measures, such as the SME Recovery Loan Scheme, are vital to Australia’s economic recovery. Though he cautioned sometimes they won’t be enough.

    He said the government must make it easier for small business to innovate and modernise their businesses. While he supports first home buyer incentives, he said states need to simplify their approval processes for land developments. Doing so would combat the housing crisis, he said.

    He also said more needs to be done to resecure the international student market, commenting that more international students will bring life into Australia’s CBDs and supply businesses with seasonal labour. 

    According to McEwan, to do all of the above, the government must prioritise 3 actions:

    First of these priorities is for all of us to get behind the rollout of the COVID vaccine. I will be encouraging all my colleagues at NAB to be vaccinated and will support them to do so. Last week as I had my flu shot at work, I was considering how large employers like NAB could assist with the rollout of the vaccine. We would be happy to do so at the right time.

    Secondly, as I’ve said before, we need to have a national plan for living with the virus. Short term lockdowns in capital cities disrupt travel plans, they undermine confidence and deter activity.

    And the third is reopening our international borders. The travel bubble with New Zealand is very welcome and more of these arrangements are needed. This will show that Australia can manage international arrivals which is critical for confidence.

    At the time of writing, the NAB share price is trading 1.19% lower on the ASX, swapping hands for $26.62.

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  • ASX stock of the day: Over The Wire (ASX: OTW) shares bounce

    A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

    The Over The Wire Holdings Ltd (ASX: OTW) share price is having an interesting day today. Over The Wire shares are, at the time of writing, up 4.77% to $4.61 a share after closing at $4.40 yesterday afternoon. However, soon after open, the Over The Wire share price rose as high as $4.81, up almost 9% for the day before settling down to the current level.

    Today’s move is the latest in what has been a pretty good few months for this company. Over The Wire shares are now up almost 30% since early January, and up almost 54% over the past 12 months. 

    So who is this company? And why are Over The Wire shares rising so healthily today?

    Over the Who?

    Over The Wire is an IT company that provides internet and telecommunications services. The company helps businesses efficiently integrate their technology and communications infrastructure. Its main client base is mid-to-large businesses and enterprises. It has been listed on the ASX since 2015, where it has since gained more than 250% in value.

    Over The Wire offers a multitude of internet connectivity options for businesses, including fibre, NBN, mobile data and wireless solutions. It also offers cloud-based products like data storage, VoIP and private networks. The company works with some big-name clients, including names like Ray White, Foodworks and National Storage REIT (ASX: NSR).

    Over The Wire impressed investors mightily back in February when it reported its earnings for the 6 months to 31 December 2020. This report included a 17% increase in revenues over the prior corresponding half. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also rose by 28%, while net profits after tax before amortisation enjoyed a 12% bump.

    Why are Over The Wire shares climbing today?

    At first glance, it’s hard to say exactly why we are seeing significant buying pressure for the Over The Wire share price today. There have been no major announcements or news out of the company since Wednesday. And those were just some paperwork, including a release regarding the company’s recently announced dividend of 1.75 cents per share. 

    Zooming out though, and we can see that Over The Wire has had a few pricing spikes over the past 6 months or so. For example, the company closed at the prices of $4.10, $4.44 and $4.17 over 11-15 March last month. Perhaps we are seeing a repeat performance today. Otherwise, the big move upwards this morning might be a result of some institutional buying pressure. Over The Wire is a relatively small company, so any large fund managers buying in would conceivably cause a share price spike. 

    ASX trading data does show that roughly 44,000 shares traded hands both yesterday and today so far. That’s a significant increase on the ~2,200 shares that swapped hands on Wednesday.

    Whatever the cause, I’m sure Over The Wire investors are a happy lot today. At the current Over The Wire share price, the company has a market capitalisation of $273.8 million, a price-to-earnings (P/E) ratio of 54.2, and a trailing dividend yield of 0.87%.

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    Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Over The Wire Holdings Ltd. The Motley Fool Australia has recommended Over The Wire 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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  • Why Mineral Resources, Origin, Strike, Whitehaven shares are sinking

    A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a subdued note. At the time of writing, the benchmark index is down 0.1% to 7,053.2 points.

    Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

    Mineral Resources Limited (ASX: MIN)

    The Mineral Resources share price is down 5% to $42.92. This follows the release of a disappointing quarterly update this morning. According to the release, during the March quarter the company shipped just 4.1 million wet metric tonnes of iron ore. This compares to the average of approximately 4.8 million to 5.1 million wet metric tonnes per quarter required to achieve its guidance. Management blamed the weak shipments on a shortage of truck drivers caused by border closures.

    Origin Energy Ltd (ASX: ORG)

    The Origin share price has sunk 8% to $4.31. Investors have been heading to the exits in their droves after the energy company downgraded its earnings guidance for FY 2021. Origin was forced to make the downgrade due to an adverse and unexpected outcome on a domestic gas contract price review and continued headwinds in energy markets’ operating conditions. Origin is now expecting its energy markets division to post a 30% to 35% decline in operating earnings in FY 2021.

    Strike Energy Ltd (ASX: STX)

    The Strike Energy share price is down 9% to 34 cents. This morning the energy producer announced the completion of a $75 million placement. According to the release, the placement attracted strong demand from local and international institutions, as well as other professional and sophisticated investors. These funds were raised at a 20% discount of 30 cents and will be used to deliver a suite of potentially transformational Perth Basin outcomes.

    Whitehaven Coal Ltd (ASX: WHC)

    The Whitehaven share price has continued its slide and is down a further 5% to $1.48. Investors have been selling the coal miner’s shares since the release of a production and guidance update this week. That update reveals that the coal miner’s production has been impacted by poor weather conditions and geological challenges. As a result, Whitehaven has downgraded its FY 2021 managed ROM production at the Narrabri mine.

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  • Why the Field Solutions (ASX:FSG) share price shot up 50% today

    Woman in yellow jumper with excited expression holds laptop open with one fist raised

    The Field Solutions Holdings Ltd (ASX: FSG) share price is soaring today after the company shared news it has secured $20 million worth of government funding.

    The Australian rural, regional and remote telecommunications carrier was awarded the funding by the Federal Government’s Regional Connectivity Program Fund (RCP).

    After the news broke, the Field Solutions share price soared 50%. It has since dropped to trade for 16 cents, which is still a gain of 10.71%.

    Let’s look closer at the news from Field Solutions.

    Delivering broadband to previously underserviced Australian areas  

    Field Solutions said the funding from RCP will help it deliver new networks in 5 states and territories where broadband and connectivity are lacking.

    The telecommunications company will use RCP funding to build network infrastructure in 12 local government areas. The infrastructure will span New South Wales, Queensland, Victoria, Western Australia and the Northern Territory.

    Construction on the projects is expected to begin in August 2021. Field Solutions hopes to have revenue coming in from them as early as the second half of the 2022 financial year.

    Field Solutions’ other projects include deploying 5G on selected networks and its aim to grow to more than 160 towers across Australia over the next 18 months.

    The company estimates, across all its projects, its total grant funding pool will be in excess of $600 million. That number includes both state and federal funding.

    Commentary from management

    Field Solutions’ CEO Andrew Roberts commented on the company’s funding from RCP. He said:

    [Field Solutions’] community approach to building telecommunications infrastructure has been recognised as a viable, cost-effective and forward looking way of delivering true broadband solutions for rural, regional and remote areas…

    Our aim is to deliver feature rich, quality telecommunications services, equivalent to what is available in metropolitan areas.

    Field Solutions share price snapshot

    The Field Solutions share price is having a party on the ASX lately.

    Currently, it’s up by 325% year to date. It’s also up by 750% over the last 12 months.

    Field Solutions has a market capitalisation of around $76 million, with approximately 543 million shares outstanding.

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  • Why the Prospect (ASX:PSC) share price is sinking 8% today

    energy asx share price flat represented by worker in hi vis gear shrugging

    The Prospect Resources Ltd (ASX: PSC) share price is in negative territory in early afternoon trade. This comes despite the company announcing the completion of a strongly supported placement.

    At the time of writing, the lithium producer’s shares are tumbling 8.1% to 17 cents.

    Completed placement

    Investors are sending Prospect shares lower as they come to grip with impending share dilution from the company.

    According to its release, Prospect has received subscriptions to raise $6.5 million from institutional and sophisticated investors. Approximately 41.9 million new ordinary shares will be allocated at an issue price of 15.5 cents apiece. This represents a discount of 16.2% on Tuesday’s closing price of 18.5 cents before the trading halt came into effect.

    Prospect highlighted that the strong support came from its largest shareholder, among new international and domestic institutions. The board and the management team also tapped into the company’s register.

    The funds raised will be used to complete the acquisition of a further 17% interest in the Arcadia Lithium Project. This will increase Prospect’s holding to a total of 87%. In addition, the remaining monies will be used to advance the development funding process and for capital working purposes.

    Settlement of the new shares is expected to take place on 23 April 2021.

    Prospect managing director Sam Hosack commented:

    The need for further, high-quality lithium projects to be developed in the face of a looming critical shortage in lithium-ion battery materials is becoming increasingly evident to industry and investment markets.

    Arcadia is in the unique position of being the only lithium deposit that is expected to operate in the lowest cost quartile via production of both low iron spodumene concentrate for the lithium-ion battery market and high purity petalite lithium concentrate for the glass and ceramics markets.

    Prospect share price snapshot

    Over the past 12 months, the Prospect share price has accelerated by 70% but is flat year to date. The company’s shares reached a 52-week high of 27.5 cents in August last year, before moving in circles.

    Based on the current share price, Prospect presides a market capitalisation of roughly $56.4 million, with 332 million shares outstanding.

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  • Why brokers are bullish on the Qantas (ASX:QAN) share price

    pilot, flying, flight, aircraft, plane, webjet, flight centre

    It often feels like one step forward and two steps back for the Qantas Airways Limited (ASX: QAN) share price.

    This week alone, investors had to juggle concerns that international travel is likely to remain limited until 2024, the cancellation of the AstraZeneca vaccine for under-50s and an upbeat business update from Qantas. 

    While it might be a tug-of-war between the bulls and bears for where the Qantas share price will go next, brokers believe the company’s shares are in a position to outperform. 

    Qantas business getting back on its feet

    Yesterday, Qantas provided a number of updates regarding the ramp-up of its services. To recap its update, the company estimates that domestic travel can reach 80% of pre-COVID capacity in Q4 FY21. Looking ahead, it believes domestic travel levels could reach more than 90% by 4Q21 and 107% in FY22. 

    To meet increased demand for domestic travel, Jetstar will deploy six Airbus A320 aircraft on loan from Jetstar Japan. It will also redeploy up to five of its Boeing 787-8 aircraft, usually flown on international routes, to the domestic market from mid-year until international flying returns. Overall, 90% of the group’s aircraft will be active in the fourth quarter, up from 25% during mid-2020. 

    Brokers are bullish on the Qantas share price 

    Macquarie has come out with an outperform rating and a $6.45 target price for Qantas shares. The broker expects FY22 domestic capacity to be approximately 110% of pre-COVID levels, supported by pent-up leisure demand, the government’s $1.2 billion aviation support package and recovering corporate travel volumes. 

    Despite warnings that international travel could be off the cards until 2024, Qantas is optimistic about international borders re-opening from October 2021. 

    The broker continues to monitor the COVID vaccine roll-outs in key destinations like the United States and Singapore that formed a big proportion of FY19 available seat kilometres. 

    Similarly, Morgan Stanley is overweight on Qantas shares with a $5.90 target price. The broker believes the recovery in domestic capacity will allow for an organic repair to take place in its balance sheet but with a relatively small impact on profitability. Morgan Stanley says this will be supported by strong leisure figures assisted by government incentives and an early recovery in corporate travel. 

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  • Can the Flight Centre (ASX:FLT) share price continue to rise?

    travel shares and IPO represented by man holding passport and wads of cash

    The Flight Centre Travel Group Ltd (ASX: FLT) share price is edging higher on Friday.

    In afternoon trade, the travel agent’s shares are up slightly to $17.78.

    This means the Flight Centre share price is now up approximately 37% over the last six months.

    Can the Flight Centre share price keep in climbing?

    The good news for investors is that it may not be too late to buy Flight Centre’s shares.

    According to a note out of Macquarie Group Ltd (ASX: MQG), its analysts have retained their outperform rating and $20.00 price target on its shares.

    This price target implies potential upside of approximately 8% for its shares over the next 12 months.

    What did Macquarie say?

    Macquarie has been looking into the travel market and notes that progress is starting to emerge in respect to the restarting of international travel.

    It believes this is a big positive for Flight Centre. Particularly given that the company’s international bookings prior to the COVID-19 pandemic accounted for roughly half of its revenue.

    In addition to this, Macquarie was pleased with the response to the Australia-New Zealand travel bubble. It notes that airlines have reported that bookings have been strong since the bubble announcement.

    Looking ahead, Macquarie is forecasting Flight Centre’s total transaction value (TTV) to reach 50% of pre-COVID levels in FY 2022. After which, it expects it to grow to 85% of pre-COVID levels by FY 2024.

    What about other travel shares?

    The broker is also bullish on Qantas Airways Limited (ASX: QAN) shares. This morning the broker put a buy rating and $6.45 price target on its shares.

    With the Qantas share price currently fetching $5.13, this price target implies potential upside of almost 26% over the next 12 months.

    Macquarie believes that a positive travel outlook and the structural business improvements it made during the pandemic will eventually lead to higher levels of profitability.

    All in all, Macquarie appears confident both the Flight Centre share price and the Qantas share price can continue their ascent during 2021.

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  • 2 outstanding tech ETFs for ASX investors to buy this month

    Monadelphous share price rio tinto A small rocket take off from a laptop, indicating a share price surge

    Exchange traded funds (ETFs) continue to grow in popularity with Australian investors.

    In fact, local investors are now estimated to have invested a whopping $100 billion into them, according to the AFR.

    And it isn’t hard to see why. Through a single investment, ETFs allow investors to invest in a large number of shares that they wouldn’t ordinarily have access to.

    But which ETFs should you add to your portfolio? Two quality options to consider are listed below:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The first ETF to look at is the BetaShares Asia Technology Tigers ETF. This popular ETF gives investors exposure to a number of the biggest tech shares in the Asia market.

    This is certainly a great space to be in. Technological adoption in Asia is surpassing the West and is expected to underpin strong growth over the next decade.

    The BetaShares Asia Technology Tigers ETF is currently invested in a total of 50 companies. This includes Alibaba, Baidu, JD.com, NetEase, and Tencent.

    The latter is a multinational technology conglomerate and one of the largest companies in the world. Its communication and social platforms, Weixin (WeChat) and QQ, connect over a billion users with each other and with digital content and services.

    VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

    Another ETF to consider is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to a portfolio of the largest companies involved in video game development, eSports, and related hardware and software globally.

    VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports. Furthermore, it notes that the fund gives investors the option to diversify their portfolio by providing opportunities away from tech giants Apple, Amazon, Facebook, Google and Microsoft.

    Among its holdings are graphics processing units (GPU) producer Nvidia, games developer Take-Two Interactive (GTA, Red Dead), Electronic Arts (FIFA, Sims, Apex Legends), and Activision Blizzard (Call of Duty).

    Where to invest $1,000 right now

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    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    The post 2 outstanding tech ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

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