The Alcidion Group Ltd (ASX: ALC) share price is having a stellar day on Thursday. Today’s positive price movement comes after the company provided updates on a new acquisition, a new government contract, and a capital raising endeavour.

At the time of writing, shares in the health-focused IT company are trading for a record 37.5 cents – up 10.29%. By comparison, the All Ordinaries Index (ASX: XAO) is currently 0.66% higher for the day so far.

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

Alcidion share price surges

In separate statements to the ASX, plus an overarching investor presentation, Alcidion declared the following:

1. The acquisition of ExtraMed, a UK National Health Service (NHS) patient flow software provider for $9.6 million cash.
2. The awarding of a $21 million contract by the Australian Department of Defence for “a system that records, stores, aggregates and analyses health information for the Defence population.”
3. A $17.9 million capital raise.
4. An FY21 Q3 update.

Acquisition of ExtraMed

With the purchase of ExtraMed, Alcidion claims it will now be “the leader in the UK market for patient flow, adding nine NHS Trusts, six of which are new to Alcidion.” The statement says the company now has a 19% market share in the NHS system.

As well, before its purchase, ExtraMed signed a contract with Hitachi to build a “large-scale” fully integrated, hospital-wide digital command centre at Salford Royal Hospital.

Alcidion is forecasting the purchase will add an extra $2.7 million worth of revenue in FY22, and added earnings before interest, tax, depreciation, and amortisation (EBITDA) of $500,000.

Kate Quirke, Alcidion managing director, said:

This acquisition significantly strengthens our position in the UK and signals our commitment to this very important market.

The combination of our technologies, staff and customers establishes Alcidion as the UK market leader for patient flow and as a foundation platform for digital command centres.

Government tender

In its second announcement, the company advised the Australian Government has awarded it a 5.5-year, $21 million contract for a health information system for the Department of Defence. Alcidion is part of a consortium of bidders who were awarded the contract. The $21 million valuation is Alcidion’s estimated share of the contract.

Alcidion will specifically provide an aggregation of data from “its consortium partners and other systems in the Defence environment…” via its Longitudinal Health Record system. The project is expected to commence in the last three months of 2021.

Ms Quirke said:

Alcidion is looking forward to working with the HKM project team to bring the negotiations to a successful conclusion so we may start this exciting and significant project for Defence.

Capital raising

Alcidion will issue 48 million shares at a price of 32 cents each to raise enough funds to cover the costs of the ExtraMed acquisition and to ensure “Alcidion has sufficient investment funds and working capital to continue its growth strategy.”

The issuing price represents a 6% discount to Tuesday’s close price.

This endeavour will raise approximately $15.4 million. The remaining $2.5 million will be raised via a share purchase plan. Eligible shareholders will be able to purchase additional shares (up to $30,000 worth) at the same price as the issuance (32 cents).

Q3 results

Finally, the company said it has earned $24.7 million of revenue so for this financial year. Of this, $3 million was earned during Q3. Revenue for FY21 is already 33% higher than the full-year results for the previous financial year.

Alcidion share price snapshot

Over the past 12 months, the Alcidion share price has increased 97.4%. In fact, just over the last 6 months, the value of the company has grown by 188%!

Alcidion has a market capitalisation of $366.6 million.

More reading

• Alcidion (ASX:ALC) shares are in a trading halt. Here’s why.
• 4 exciting small cap ASX shares to watch
• Why Alcidion, GrainCorp, Premier Investments, & Xero are storming higher
• Why the Alcidion (ASX:ALC) share price is surging 5% higher
• Why these ASX shares are breaking out into record highs

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. 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 Alcidion (ASX:ALC) share price just hit an all-time high appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Rw9TtD

At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is having a mixed day. The benchmark index is currently trading flat at 7,025.6 points.

Here’s what has been happening on the market today:

Zip raises $400 million

The Zip Co Ltd (ASX: Z1P) share price is trading lower today after emerging from its trading halt. This morning Zip announced that it has successfully priced its $400 million zero coupon senior unsecured convertible notes. These notes are convertible into fully paid ordinary shares of Zip at an initial conversion price of $12.39 per share. This represents a conversion premium of 29% over the Zip share price prior to its halt. The funds will be used to support the active pursuit of both core and international growth opportunities.

Bank of Queensland half year results

The Bank of Queensland Limited (ASX: BOQ) share price is in the red today despite announcing a solid half year result. During the first half of FY 2021, the regional bank posted a 9% increase in cash earnings after tax to $165 million. This was driven by balance sheet growth, improved net interest margin (NIM), disciplined expense management, and lower loan impairment expense. This allowed the bank to declare a 17 cents per share fully franked interim dividend. This result was in line with what Goldman Sachs was expecting. It pencilled in cash earnings of $164 million and a 17 cents per share dividend.

Regis Resources share price crashes

The Regis Resources Limited (ASX: RRL) share price is crashing lower today after returning from its trading halt. Investors have responded negatively to its plan to acquire a 30% interest in the Tropicana Gold Project for $903 million from IGO Ltd (ASX: IGO). To fund the acquisition, Regis has raised $494 million from institutional investors at a 14.8% discount of $2.70 per share. The company will now seek to raise a further $156 million via the fully underwritten retail component of the entitlement offer.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Ampol Ltd (ASX: ALD) share price with a gain of over 5%. This follows the release of the fuel retailer’s first quarter update. The worst performer has been the Regis share price with a 14% decline. This follows its aforementioned equity raising.

More reading

• Why the Whitehaven Coal (ASX:WHC) share price is plunging 14%
• The Pendal (ASX:PDL) share price lifts on funds update
• Top brokers name 3 ASX shares to sell today
• What’s happening with the Boral (ASX:BLD) share price?
• Is the Afterpay (ASX:APT) share price set to surge later this month?

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 ZIPCOLTD FPO. 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 ASX 200 flat: Zip raises $400m, Bank of Queensland results, Regis crashes appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Q7sMmi

The Whitehaven Coal Ltd (ASX: WHC) share price is sinking today after the coal mining company provided its quarterly production report and revised FY21 guidance.

It seems the market has homed in on the negatives from a mixed bag of information. At the time of writing, the Whitehaven Coal share price has fallen steeply by 14.3% to $1.58 a share.

Taking the good with the bad

The good news first. Whitehaven’s managed run-of-mine (ROM) coal production increased 12% compared to the prior corresponding period in the March quarter. The increase put its ROM production at 5.5 million tonnes (Mt). Additionally, the company’s managed saleable production increased 6% to 4.3Mt compared to the same time last year.

Coal sales also increased 7% to 4.8Mt compared to the prior period, leaving Whitehaven with 2.8Mt of coal stocks by the end of March. Improved coal prices also bolstered sales over the quarter due to increased economic activity and supply constraints.

However, the good news ends there. While coal prices are attractive, Whitehaven has been impacted by poor weather conditions and geological challenges. The Narrabri underground longwall mine lost two weeks of production due to geological issues. On top of that, the longwall’s key components will require a further two weeks of downtime for overhauling.

Narrabri’s additional downtime has resulted in Whitehaven revising its FY21 managed ROM production. Rather than the previous 5.3Mt to 5.5Mt forecasted, the company now expects 4.5Mt to 4.9Mt from the Narrabri mine.

Logistics take it from bad to worse

Whitehaven also provided an update on the logistics issues previously reported. Operations were dampened in March by faults in a ship loader at the Port of Newcastle. This resulted in the company suspending ship loading while maintenance was carried out on the equipment.

Logistics were further complicated by the weather-related restrictions on the port at the time, resulting in a large queue of 40 ships awaiting entry at the port.

Due to these issues, Whitehaven on 23 March revised its FY21 managed coal sales guidance down to 18.5Mt to 19Mt.

Today, the Whitehaven Coal share price is being hit by the further decrease of its sales guidance. The company now expects 17.8Mt to 18.3Mt as a result of Narrabi’s extended downtime.

For consolation, sales volume slippage caused by the logistics issues is anticipated to be recovered early in FY22.

Whitehaven share price recap

It’s been a few difficult years for the coal producer. Since July 2018, the Whitehaven Coal share price has been on a downtrend, erasing 72% off its market capitalisation.

Even as the economy recovers, shareholders haven’t experienced any of the resurgence. The Whitehaven Coal share price has actually lost a further 22% over the past year. Meanwhile, investors of the S&P/ASX 200 Index (ASX: XJO) have basked in a 28% gain.

More reading

• The Pendal (ASX:PDL) share price lifts on funds update
• What’s happening with the Boral (ASX:BLD) share price?
• Is the Afterpay (ASX:APT) share price set to surge later this month?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises above 7,000, Resolute Mining soars, Galaxy jumps

Motley Fool contributor Mitchell Lawler 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 Whitehaven Coal (ASX:WHC) share price is plunging 14% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3snYSaC

Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) which looks at the larger businesses on the ASX.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 14% per annum since inception in May 2016, which is superior to the S&P/ASX 200 Accumulation Index average return of 9.1%.

These are the two ASX shares that WAM outlined in its most recent monthly update, which were two of the largest contributors of performance for the month:

Telstra Corporation Ltd (ASX: TLS)

Telstra is the clear market leader when it comes to telecommunications, providing both broadband and mobile offerings to households, businesses and governments.

WAM Leaders is positive about Telstra because of the plan to realise value through the separation and partial sale of its mobile phone towers that is currently underway.

The fund manager said that Telstra’s average revenue per mobile user has reached an inflection point, with the earnings outlook expected to improve as 5G take up accelerates and even more after international roaming revenue returns.

NBN headwinds are subsiding because the transition has largely already occurred. WAM Leaders thinks that the ASX share will only need to hit the lower end of management’s medium-term earnings targets to continue to pay the current full year dividend of 16 cents per share.

However, the fund manager said that one of the key risks for Telstra is industry competition and changes to the TPG Telecom Ltd (ASX: TPG) board in late March are a “clear positive” for industry rationality over the coming years.

Boral Limited (ASX: BLD)

Construction products business Boral is the other ASX share that the fund manager brought attention to.

It’s a large business with 23,000 employees and 783 operating and distribution sites globally.

WAM Leaders likes the new management team and that strategy that is being pursued. Boral is currently trying to reduce costs, go through a turnaround, divest assets (such as its US building product assets) and manage its capital. Boral also benefits from macroeconomic tailwinds.

The fund manager thinks there are several catalysts that can help the business over the next year.

Progress is being made on management’s $300 million transformation of earnings before interest and tax (EBIT) targets and the expected improvement in operating conditions for both Australian building products and US fly ash.

Boral recently completed the sale of its stake of USG Boral for US$1 billion. It’s going to use this money to pay down debt.

It has started its on-market share buyback ahead of schedule and this is one of the reasons for WAM Leaders liking the ASX share.

More reading

• What’s happening with the Boral (ASX:BLD) share price?
• This ASX telco and bank will go gangbusters: fundie
• 2 fantastic blue chip ASX shares to buy in April
• 4 reliable ASX dividend shares to buy for income
• Why focus could soon shift to dividend upgrades for the Telstra (ASX:TLS) share price

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post WAM Leaders thinks these 2 ASX shares are a buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3e1V1uI

The Bellevue Gold Ltd (ASX: BGL) share price is edging lower despite the company providing a positive resource update prior to the market open. At the time of writing, Bellevue shares are trading 0.57% lower at 87.5 cents.

The company’s shares did open higher this morning and reached an intraday high of 91 cents before retreating to their current level. 

For comparison, the S&P/ASX 300 Index (ASX: XKO) is currently trading 0.13% lower for the day so far. 

Let’s take a look at what the company announced.

Bellevue Gold share price sinks despite increased resources

Bellevue this morning reported an increased Maiden Resource as part of its Bellevue Gold Project in Western Australia. The company reported a Marceline discovery of 310,000 ounces at 9.7 grams per tonne of gold. That includes indicated resources of 130,000 ounces at 10.1 grams per tonne of gold.

The Marceline Resource will form part of the stage two feasibility study currently underway as part of the project. Bellevue said it will accelerate the Marceline drilling program on the back of the strong results.

Both Marceline and the neighbouring Deacon North sit in the upper levels of the mine plan. That reportedly means their inclusion in the feasibility study could be good for the Bellevue Gold Project.

Bellevue managing director Steve Parsons said this could increase the project’s production, mine life and overall returns. “These newly discovered resources have the potential to have a positive impact on the project’s economics, due to their location sitting closer to the surface”, he said.

The Bellevue share price jumped higher in early trade before paring back those gains following the announcement.

Bellevue’s Global Resource has increased to 2.7 million ounces at 9.9 grams per tonne as a result of the update. Global Indicated Resources have climbed to 1.2 million ounces at 11.0 grams per tonne of gold.

Foolish takeaway

The Bellevue Gold share price is up and down in today’s session on the back of the miner’s upgraded resource estimate and plans for an accelerated drilling program at its site.

More reading

• Is it time for ASX gold shares to make a comeback?
• ASX shares making the biggest moves today
• Why the Bellevue (ASX:BGL) share price is charging higher today

Motley Fool contributor Ken Hall 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 Bellevue Gold (ASX:BGL) share price slumps despite resource update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2QnR6QL

The Pendal Group Ltd (ASX: PDL) share price is edging higher in morning trade, up 0.5%.

We take a look at the S&P/ASX 200 Index (ASX: XJO) listed global investment manager’s latest quarterly funds under management (FUM) update below.

What did Pendal report on its FUM?

The Pendal share price is edging higher after the company revealed its FUM increased by 4.4% during the March quarter. Pendal’s FUM rose by $4.3 billion to reach $101.7 billion.

According to the release, net inflows for the quarter were $900 million. There was also a $900 million boost from currency movements with the Aussie dollar falling against a basket of key currencies during the 3-month period. Pendal said that strong investment performance and higher markets combined to contribute $2.5 billion.

Commenting on the March quarter results, Pendal Group CEO Nick Good said:

There has been a discernible turnaround in flows during the quarter with most channels achieving positive net flows. Inflows of $0.7 billion in Australia combined with substantially improved flows in the UK and Europe delivered healthy organic FUM growth during the quarter. Only the Westpac Legacy book and the OEICs experienced net outflows, and the level of outflow among the OEICs was markedly reduced.

According to Good, Pendal witnessed an uptick in investment performance across its business during the reported quarter.

He noted that the company’s recently launched Regnan Global Equity Impact Strategy had recorded strong inflows. The Regnan Global Equity Impact Strategy attracted inflows of $100 million, bringing its total inflows since launch to $200 million.

Good concluded:

With our diversified portfolio of investment strategies, we have been able to capitalise on the recent market rotation from growth to value and the increasingly positive investor sentiment globally. As the economic outlook continues to improve, particularly in the US, we are well positioned to take advantage of changes in investor preferences and market trends.

Pendal share price snapshot

The Pendal share price is up 38% over the past 12 months, outpacing the 28% gain posted by the ASX 200.

Year-to-date, Pendal shares have gained 10%.

More reading

• What’s happening with the Boral (ASX:BLD) share price?
• Is the Afterpay (ASX:APT) share price set to surge later this month?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises above 7,000, Resolute Mining soars, Galaxy jumps
• Could the Galaxy (ASX:GXY) share price be next to raise capital after Zip (ASX:Z1P)?

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

The post The Pendal (ASX:PDL) share price lifts on funds update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Qq91pY

The Universal Biosensors, Inc. (ASX: UBI) share price is in negative territory today despite announcing a distribution deal. In early morning trade, the medical diagnostics company is swapping hands for 71 cents, down 2.7%.

What did Universal Biosensors announce?

Investors are driving the Universal Biosensors share price lower today. This comes despite the company’s latest positive announcement.

According to this morning’s release, Universal Biosensors advised it has signed a non-exclusive distribution agreement with Wine & Beer Supply.

Founded in 2015, Wine & Beer is a rapidly growing business that provides an array of products to beverage companies. This includes bottles, tasting glasses, carriers, shippers, corks, AND vineyard supplies in addition to other items used by winery, brewery, and cidery industries.

The new deal allows Wine & Beer Supply to provide distribution channels for Universal Biosensors’ wine testing platform device, Sentia. This includes coverage over the eastern part of the United States. Importantly, this deal also sets up Sentia for a global launch.

Furthermore, the distribution agreement will run for a period of 3 years and contains standard renewal and termination options.

Management commentary

Universal Biosensors CEO, John Sharman welcomed the deal, saying:

Securing another distributor in the USA is a positive step in the commercialisation of Sentia globally. Wine & Beer Supply has a strong presence in the USA, particularly in the eastern half of the USA and will give Sentia greater access to the 11,500 wineries across the country.

Along with the current capability we believe the possibility of Sentia’s future testing capability for Glucose, Fructose, Malic Acid and others will add significant value to the winemaking industry. We are negotiating terms with a number of key industry players around the world and look forward to reporting additional distribution partnerships in due course.

Wine & Beer Supply CEO, Dave Robertson added:

We are delighted to partner with Sentia in the United States. We have received positive feedback from our customers and believe Sentia will make a significant impact in the wine testing market in the USA.

About the Universal Biosensors share price

In the past 12 months, the Universal Biosensors share price has gained over 300%. The share price is also up more than 60% year-to-date. Additionally, the company’s shares reached a multi-year high of 84.5 cents yesterday following another signed distribution agreement with a Singularity SpA.

On valuation grounds, the Universal Biosensors commands a market capitalisation of around $129.6 million, with 177.5 million shares outstanding.

More reading

• Why the Universal Biosensors (ASX:UBI) share price is up 6% today
• Here’s why the Universal Biosensors (ASX:UBI) share price is soaring 10%
• Why the Universal Biosensors (ASX:UBI) share price is shooting 36% higher today
• Universal Biosensors (ASX:UBI) share price is lifting today. Here’s why

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

The post Universal Biosensors (ASX:UBI) share price sinks despite new deal appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3a9xg2U

On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

AGL Energy Limited (ASX: AGL)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $9.28 price target on this energy company’s shares. The broker has been looking at the company’s separation plans and suspects it may find limited investor appetite for its generation business. And while it sees the retail operations as a more attractive option for investors, it isn’t enough for a positive overall rating. The AGL share price is trading at $9.38 on Thursday.

Galaxy Resources Limited (ASX: GXY)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $1.80 price target on this lithium miner’s shares. This follows the release of an update on its Sal de Vida operation this week. Although the broker was pleased with the update, it believes everything is already factored into the current Galaxy share price. In light of this, it isn’t in a rush to change its rating. The Galaxy share price is fetching $3.59 at the time of writing.

Zip Co Ltd (ASX: Z1P)

Analysts at UBS have retained their sell rating but lifted their price target on this buy now pay later (BNPL) provider’s shares to $6.50. According to the note, the broker was pleased with Zip’s strong growth during the third quarter. However, it isn’t enough to become positive on the company. UBS notes that Zip is still a relatively early stage investment with significant execution risks. In addition to this, it notes that BNPL providers have benefited greatly from COVID-19 stimulus. It has concerns about what will happen when stimulus is wound back by governments. The Zip share price is trading at $9.47 today.

More reading

• Is the Afterpay (ASX:APT) share price set to surge later this month?
• Strike Energy (ASX:STX) goes into trading halt for $80m cap raise
• Zip (ASX:Z1P) share price sinks lower after $400m notes offering
• Why the IOUpay (ASX:IOU) share price is up 15% this week
• Is the Klarna / Flybuys partnership the future for ASX BNPL providers?

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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 Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wZ1L54

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.

What happened

Wednesday was a tumultuous day for stocks with ties to the cryptocurrency market. Leading digital tokens Bitcoin (CRYPTO: BTC) and Ethereum traded sideways, which usually indicates a calm market day for crypto stocks.

However, the initial public offering (IPO) of cryptocurrency exchange Coinbase Global (NASDAQ: COIN) drove many of the most volatile crypto stocks lower. Bitcoin-mining heavyweights Marathon Digital Holdings (NASDAQ: MARA) and Riot Blockchain (NASDAQ: RIOT) fell as much as 17.1% and 16.6%, respectively. Fellow crypto miner Bit Digital (NASDAQ: BTBT) started the day nearly 25% higher due to positive momentum from Bitcoin price increases in recent days but was trading 6.7% lower at 3 p.m. EDT. Even data-analytics company Microstrategy (NASDAQ: MSTR), which has invested its cash reserves in Bitcoin tokens, dropped as much as 12.5% lower.

So what

Why should Coinbase’s public offering trigger a wave of falling share prices among Bitcoin miners and others with a heavy interest in rising Bitcoin prices? After all, this event has been widely advertised as an important turning point in the history of cryptocurrencies as a legit investment class. A well-heeled Coinbase could act as a stabilizing force in this volatile market and help traditional investors find their way into this new idea.

The new stock surged more than 30% higher on day one, briefly touching a $100 billion market capitalization. This IPO checked all the boxes that were expected to support the generally positive pricing momentum for Bitcoin, Ethereum, and other leading crypto names. All of that should be good news for crypto miners and investors, too.

That stabilizing effect can be bad news for some of the highest fliers in the cryptocurrency market, though. Marathon’s stock has gained 9,600% over the last year, while Riot Blockchain soared 4,800% higher. Their massive gains were built around the idea of skyrocketing Bitcoin prices for the foreseeable future.

A Bitcoin market with more influence from steady hands like a well-funded Coinbase may be good for the cryptocurrency’s long-term value, but with less exciting gains in the near term. The same speculators who drove these stocks to the moon in recent months are reconsidering their tactics at this market crossroads.

Now what

Coinbase raised nearly $3 billion in Wednesday’s direct listing, bolstering a balance sheet that held just $4.9 billion of cash equivalents at the end of 2020. Most of that cash balance consisted of customers’ custodial funds, which limits what Coinbase can do with it. The IPO may turn out to be a game-changing moment in the market history of cryptocurrencies.

That should be an exciting thought for long-term investors who expect Bitcoin and other digital currencies to become a standard form of value storage, much like gold or government bonds are today. It could also be terrifying for short-sighted speculators who make their living on extreme volatility.

Personally, I’m starting to think of my modest cryptocurrency holdings as serious long-term investments. Coinbase didn’t drive me to that conclusion all by itself, but this IPO played a significant part in my thought process. You can take a deep dive into how the crypto market works before you make up your own mind.

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

More reading

• Coinbase (NASDAQ:COIN) shares pop and drop in debut
• The Coinbase (NASDAQ:COIN) IPO price has been announced
• Bitcoin price hits new record high as Bitcoin ETF tops $1.3 billion
• The DigitalX (ASX:DCC) share price is up 30% this week
• What’s driving the Bitcoin price higher?

Anders Bylund owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends MicroStrategy. 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 Cryptocurrency stocks like Marathon Digital and Riot Blockchain crashed Today appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/3sqa0UE

The Boral Limited (ASX: BLD) share price is bouncing around in early morning trade, currently up 0.3%.

Below, we take a look at the S&P/ASX 200 Index (ASX: XJO) listed building products and construction materials company’s latest market announcement.

What did Boral report this morning?

The Boral share price is edging higher after the company reported it is studying various options for its North American fly ash business. Those options include a potential joint venture (JV), strategic alliance, divestment to a third party or continued ownership

If you’re not familiar, fly ash is a byproduct of coal combustion. It’s mainly used to improve the durability of concrete.

Commenting on the plans for its North American fly ash business, Boral’s CEO Zlatko Todorcevski said:

We have conducted a detailed study of the US fly ash industry and remain confident in the long term demand dynamics for the industry, including significant incremental demand growth potential from the US government’s proposed new infrastructure program.

United State’s President Joe Biden has pledged to spend some US$2 trillion to revamp the US economy and upgrade the nation’s ageing infrastructure. That, as Todorcevski points out, will see a boost in the demand for concrete and fly ash.

Addressing the US shift to renewables and away from coal-fired power, Todorcevski continued:

New opportunities for supply exist from harvesting landfills, imports and natural pozzolans, which we expect will more than offset the decline in fresh fly ash supply as the US transitions away from coal fired power generation. As we continue to build our alternative supply strategy, strategic alliances and opportunities for partnership will be considered in parallel with divestment options or continued ownership.

The company said it has appointed advisors to assist with the study of its US fly ash business. It will provide an update when there is material progress or with its full year results in August, whichever comes sooner.

Earlier this month, on 1 April, the Boral share price got a big lift on a separate announcement related to its US businesses. That came after the company reported it had completed the sale of its 50% share in the USG Boral joint venture to Gebr Knauf KG for US$1.02 billion.

Boral share price snapshot

Boral shares have performed strongly over the past 12 months, up 120%. That compares to a gain of 28% on the ASX 200.

So far in 2021, the Boral share price is up 20%.

More reading

• Is the Afterpay (ASX:APT) share price set to surge later this month?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises above 7,000, Resolute Mining soars, Galaxy jumps
• Could the Galaxy (ASX:GXY) share price be next to raise capital after Zip (ASX:Z1P)?
• 3 latest ASX shares that top brokers have upgraded to “buy” today

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

The post What’s happening with the Boral (ASX:BLD) share price? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3tpirRe