The Tinybeans Group Ltd (ASX: TNY) share price is reaching for the sky today after the company announced it was eligible for United States OTC listing.

In closing trade this afternoon, shares in the mobile and web-based social media platform are up 18.4% to $1.80.

What did Tinybeans announce?

The Tinybeans share price is shooting higher after the company reported a favourable decision that will extend its reach to US-based investors.

In its release, Tinybeans advised that its OTCQX-quoted ordinary shares are now eligible for electronic clearing and settlement through the Depositary Trust and Clearing Corporation (DTCC) in the US. They will be listed under the code of OTCQX: TNYYF and operate in the same class as ordinary shares.

DTCC is a subsidiary of the Depositary Trust Company (DTC) that manages the electronic clearing and settlement of publicly-traded companies. Securing DTC eligibility means that Tinybeans can be traded in US dollars and in the North American time zone. This promotes a simplified trading process for the company as well as enhancing its liquidity of registered shares.

A range of online brokerage firms such as Ameritrade, Fidelity Investments, Charles Schwab and E*TRADE all offer OTCQX trades.

CEO commentary

Tinybeans CEO Eddie Geller hailed the positive result, saying:

I am delighted to share the news that Tinybeans Group now has DTC Eligibility. We receive requests almost daily from US investors who have had difficulty buying our stock and are extremely pleased to announce that we have obtained DTC eligibility, effective immediately. This means the company’s stock can now be traded in USD for those who wish to do so in the American time zone.

This represents an important step forward in increasing liquidity, broadening our shareholder base and building a strong presence for our company within the US capital markets. We would like to thank our DTC filing agent Glendale Securities, our transfer agent AST and our OTC Sponsor and legal advisor Rimon Law for their efforts

About the Tinybeans share price

In the past 12 months, the Tinybeans share price has increased by 26%. The company’s shares were hit hard during the COVID-19 rout in March last year, falling to a low of 51 cents. However, they have accelerated since October to touch a 52-week high today.

Based on the current share price, Tinybeans has a market capitalisation of around $81 million.

More reading

• ASX 200 drops 0.2%, Costa soars, BOQ is buying ME Bank
• Why the IOUpay (ASX:IOU) share price crashed 13% lower today
• 2 of the best ASX 200 blue chip shares to buy
• Why the Oventus Medical (ASX:OVN) share price is up 7%
• Why the Genetic Signatures (ASX:GSS) share price surged 10% higher today

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tinybeans Group Ltd. The Motley Fool Australia has recommended Tinybeans Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) fell by around 0.2% to 6,781 points.

Here are some of the highlights from the ASX today:

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price was the star performer in the ASX 200 today, rising by around 12%.

It reported its result for the full year ending 27 December 2020.

Costa revealed that its revenue increased by 11.2% to $1.2 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 47.2% to $144.8 million and underlying net profit grew 108.4% to $59.4 million.

The horticultural business said that it has recovered from drought challenges. The international segment performance was well up on the previous year. There was a sustained Australian category momentum through the second half of the 2020 calendar year, driving increased earnings.

Costa said that there was improvement across the board with successful execution of business fundamentals including yields, quality, costs and COVID-19 management.

Favourable market conditions were supported by positive demand and pricing, especially in the citrus, berry and avocado categories.

Costa said that it’s continuing to manage the business for the long-term.

The company’s balance sheet ended with net debt of $143.9 million. The Costa board decided to declare a dividend of 5 cents per share.

Costa CEO Harry Debney said:

The company is committed to investing in new crop growing methods to achieve improved yields, reduce production costs, and address climate related risks. This is why in CY21 we will commence a commercialisation program for the planting of 40 hectares of protected, trellised high density substrate avocado trees, across a number of regions aligned to our existing avocado plantings. A small trial undertaken over the past three years has already delivered global leading results, including faster tree maturity, higher yield, better fruit quality and greater efficiency of water use versus conventional plantings.

BlueScope Steel Limited (ASX: BSL)

The company reported it FY21 half-year result today. It said that its net profit after tax (NPAT) went up by 78% to $330.3 million. BlueScope revealed that its underlying net profit after tax was $332.8 million.

Underlying earnings before interest and tax (EBIT) for the half-year was $530.6 million, an increase of 75% compared to the prior corresponding period.

The Australian steel products division delivered underlying EBIT of $259.1 million, this was an increase of 103% compared to the prior corresponding period. There has been particularly strong demand for coated and painted products, leading to the strongest domestic volumes since 2010 for the company.

The ASX 200 company’s building products division for Asia and North America generated underlying EBIT of $150.3 million, up 87% compared to the prior corresponding period. The North America business improved significantly, due to improved manufacturing performance and cyclical margin expansion. Its building North America business saw 189% growth of underlying EBIT to $70.5 million.

The BlueScope share price ended the day higher by more than 2%.

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price went up more than 3% today after updating its profit guidance for FY21.

The ASX 200 investment bank said that it’s expecting its FY21 profit to now be up 5% to 10% on FY20.

Extreme weather conditions in North America have significantly increased short-term client demand for Macquarie’s capabilities in maintaining critical physical supply across the commodity complex and particularly in relation to gas and power.

Macquarie’s commodities and global markets (CGM) business physically ships gas on the majority of major pipelines across the US and over time has built capacity to support clients by delivering power and physical commodities to help them meet the unexpected needs of their customers.

Bank of Queensland Limited (ASX: BOQ)

Today, BOQ announced that it’s going to acquire ME Bank for $1.325 billion to create a true challenger to the big four banks.

BOQ said that it’s expected to deliver material scale, broadly doubling the retail bank and providing geographic diversification with strong trusted brands and customer-focused values.

The regional bank said that this is financial compelling. It’s expected to be low double-digit to mid-teens accretive for cash earnings per share (EPS) including full run-rate synergies in FY22.

It’s expected that the pre-tax synergies will be somewhere in the realm of $70 million to $80 million.

BOQ also said that it expects to announce FY21 first half statutory profit growth of 60% to 65% and cash profit growth of 8% to 10%.

More reading

• 2 of the best ASX 200 blue chip shares to buy
• BlueScope (ASX:BSL) share price rises after growing HY21 profit by 78%
• The QBE (ASX:QBE) share price jumps to 2021 high on broker upgrades
• ASX 200 up 0.1%: Macquarie upgrades guidance, Costa impresses, NIB surges higher
• Why Costa, Lovisa, OZ Minerals, & Tyro shares are racing higher today

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

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It was another very disappointing day of trade for the IOUpay Ltd (ASX: IOU) share price on Monday.

The Malaysia-based buy now pay later (BNPL) provider’s shares ended the day 13% lower at 53.5 cents.

This means the IOUpay share price has now fallen 37% since peaking at a record high of 85 cents last Monday.

Why is the IOUpay share price under pressure?

Investors have been selling IOUpay’s shares since its surprise and opportunistic $50 million placement last week.

The placement saw sophisticated and institutional investors offered 100 million shares at 50 cents per share. This represented a 28.6% discount to its last close price at the time of 70 cents.

According to the release, the proceeds will be used for growth initiatives including digital payments and to accelerate new business development opportunities in the BNPL sector in South East Asia.

IOUpay’s Chairman, Aaron Lee, explained: “The Company is delighted to see the market respond so strongly to our plans to accelerate our market position as a leading operator in the digital payments and BNPL sectors in South East Asia.”

“This capital raising represents another important milestone in our roadmap to expand our existing and new product offerings and accelerate the growth potential of that expansion. We welcome all new shareholders and thank our existing shareholders for their continued support for this exciting new next chapter of IOU which combined with existing cash reserves provides us with a strong capital platform to execute our market validated business plan,” he concluded.

Is IOUpay the real deal?

At this stage it is too early to know whether IOUpay is the real deal. The company has only just launched its offering and has yet to report back on how that is progressing.

In addition to this, the company could soon have competition from Afterpay Ltd (ASX: APT). Last year it acquired Singapore-based but Indonesia-focused BNPL company EmpatKali.

If Afterpay decides to expand properly into the region, it seems only logical that Malaysia will be on its list eventually.

IOUpay shareholders will no doubt be hoping the company can gain a foothold before that happens.

More reading

• What to expect from the Afterpay (ASX:APT) half year result
• Why Chorus, Douugh, IOUpay, & Reliance shares are tumbling lower
• 6 high profile ASX 200 shares reporting results this week 
• Top brokers name 3 ASX shares to buy next week
• 5 things to watch on the ASX 200 next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The illustrious S&P/ASX 200 Index (ASX: XJO) is home to a good number of shares with true blue chip status. So many, in fact, it can be hard to decide which ones to include in your portfolio.

In order to narrow things down, I have picked out two blue chip ASX 200 shares which are highly rated right now. They are as follows:

CSL Limited (ASX: CSL)

The first ASX 200 blue chip share to look at is CSL. It is one of the world’s leading biotechnology companies, responsible for the CSL Behring and Seqirus businesses.

Last week the company released its half year results and revealed a 16.9% increase in revenue to US$5,739 million and a massive 45% jump in net profit after tax to US$1,810 million. This was driven by a surge in flu vaccine sales, the successful transition to its own distribution model in China, and solid demand for immunoglobulins and HAEGARDA.

Disappointingly, despite this incredible profit growth, management only held firm with its guidance for FY 2021 net profit after tax of US$2,170 million to US$2,265 million in constant currency. This represents year on year growth of just 3% to 8% and implies a sharp profit decline in the second half.

While this is disappointing, the pullback in the CSL share price appears to have left it trading at a very attractive level for a long term focused investor.

For example, in response to its results, analysts at UBS retained their buy rating but trimmed their price target slightly to $330.00. This compares to the current CSL share price of $267.79.

REA Group Limited (ASX: REA)

Another ASX 200 blue chip ASX share to look at is property listings company REA Group. After successfully battling through a tough period because of the pandemic, things are looking incredibly rosy for the company now.

In fact, REA Group just revealed a return to growth in the first half of FY 2021 thanks to its excellent cost control which offset softer revenues.

For the six months ended 31 December, the company reported a 2% decline in revenue to $430.4 million. But thanks to a 13% reduction in operating expenses to $145.8 million, REA Group reported a 9% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $290.2 million.

Pleasingly, with the housing market improving, mortgage loan growth accelerating, and house prices tipped to rise strongly in 2021, listing volumes look set to rise strongly over the next 12 months. Thanks to this, its lower costs, potential price increases, and new revenue streams, this could lead to an acceleration in its profit growth.

One broker that is positive on REA Group is Morgan Stanley. It has an overweight rating and $175.00 price target on its shares. This compares to the latest REA Group share price of $150.56.

More reading

• The QBE (ASX:QBE) share price jumps to 2021 high on broker upgrades
• 3 ASX blue chip shares that just raised their dividends
• ASX 200 up 0.1%: Macquarie upgrades guidance, Costa impresses, NIB surges higher
• ASX 200 Weekly Wrap: ASX lower despite bumper dividends
• 5 things to watch on the ASX 200 on Monday

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 CSL Ltd. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Oventus Medical Ltd (ASX: OVN) share price moved higher today, jumping 7.32% to 22 cents a share at the time of writing.

The Oventus share price was sent flying after the medical device company released its half-year results for the period ended 31 December 2020  (1H FY21). 

Oventus reports strong financial results

The company reported a 192% increase in booked revenue compared to the prior corresponding period (pcp), with booked revenues coming in at $550,000 for the 1H FY21 period.

Cash receipts totalled $415,000, which was a 109% increase over the pcp.  

Oventus held $4.8 million in cash and cash equivalents at the end of the period. This compares to $6.2 million at the end of the pcp.

The company reported a loss for the first half, totalling $4.7 million. This is an improvement compared to the loss reported for the six months ended 31 December 2019, which was $5.1 million.

Overall, Oventus has accumulated losses of $37.3 million. However, the business notes that as of 31 December 2020, its current assets exceed its current liabilities by approximately $3.6 million.

A government stimulus of $265,243 was granted to the company during 1H FY21 to help it maintain staffing levels in Australia and Canada during the coronavirus pandemic.

CEO Commentary

Oventus founder and CEO, Dr Chris Hart commented on the company’s performance: 

We are very pleased with how our Lab in Lab model has performed through what has been one of the most volatile and unprecedented respiratory pandemics in history. Despite the significant hampering of footfall across North America, we’ve still managed to grow device sales by 143% when compared to the same period last year.

Looking ahead, he added:

Based on what we currently know and correlated with a drop in the rate of infection, we see an improved outlook for physical patient appointments in North America. To protect ourselves against further volatility, our homecare extension of Lab in Lab has been elevated and we’ve just launched a new direct to consumer site, goPAPfree.com, where patients in North America can access treatment completely virtually.

This fully virtual model is the same one that is being made available to VGM’s member-base. While it’s a nascent part of our business, with very low patient acquisition costs, no CAPEX, higher margins and no physical barriers, we expect the homecare model to become a very exciting part of our strategy.

Oventus share price snapshot

Oventus is a medical device company focused on treating sleep apnoea and snoring. 

The company’s market capitalisation is $32.4 million. There are 158.3 million shares outstanding.

The Oventus share price is up by 4% in 2021, but has fallen 68.7% over the past year

More reading

• 2 of the best ASX 200 blue chip shares to buy
• Why the Genetic Signatures (ASX:GSS) share price surged 10% higher today
• You need to do this NOW in case of a market plunge
• BlueScope (ASX:BSL) share price rises after growing HY21 profit by 78%
• Why the Smart Parking (ASX:SPZ) share price is jumping 14% today

Motley Fool contributor Gretchen Kennedy 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 Genetic Signatures Ltd (ASX: GSS) share price was on form on Monday.

At one stage the molecular diagnostics company’s shares were up as much as 10% to $1.83.

The Genetic Signatures share price ultimately closed the day 6% higher at $1.75.

Why did the Genetic Signatures share price surge higher?

The catalyst for the strong rise in the Genetic Signatures share price today was the release of its half year results. Those results revealed record sales and its maiden profit.

For the six months ended 31 December, the company reported a whopping 638% increase in revenue to $18.7 million. This was driven by exceptionally strong demand for its EasyScreen SARS-CoV-2 (COVID-19) Detection Kit globally.

Thanks to its strong sales growth and improvements in its gross margin due to a higher average selling price, Genetic Signatures reported its first significant profit of $4.5 million for the half. This compares to a net loss of $2.35 million in the prior corresponding period.

Positively, the company was cash flow positive in both quarters. It generated $5.2 million overall and $7.8 million in positive operating cashflow. This includes a $2.6 million refund from the ATO in relation to the Research and Development (R&D) tax incentive program. However, it is worth noting that management doesn’t expect to qualify for this refund next year as its sales are likely to exceed the $20 million threshold.

At the end of the half, the company had a cash balance of $36.3 million and no debt.

Outlook

No guidance has been provided for the full year. However, management spoke positively about demand for its products.

It commented: “COVID-19 testing is expected to continue for the foreseeable future even with the rollout of the various vaccines around the world, and this is expected to benefit Genetic Signatures, though the Company is unable to determine whether testing volumes will change and/or by what proportion.”

“As new variants of the virus are detected it is unclear if the vaccines will be effective against them nor how transmissible the variants will be. Our platform technology, 3base is less susceptible to these variants and the company has confirmed that our current assay detects all reported variants.”

More reading

• Why the Genetic Signatures (ASX:GSS) share price is edging higher

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.

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It’s been good times on the share market since March.

When you’re enjoying a bull market, it’s human nature to not give much thought to what might happen when everything comes crashing down.

But more than one equities expert has said it’s important to act quickly and buy up bargains if the market ever slumps.

“Extreme conditions create the most attractive investing opportunities, with some 90% of market returns being earned over just 5% of trading days,” Collins St Value Fund managing director Michael Goldberg posted this month on Livewire.

“It’s precisely during those times that all those around you think you are crazy, when even your ‘gut’ insists that you’re making a mistake, that true long term profits are established.”

Goldberg said one needs to feel uncomfortable to realise comfortable long-term gains.

“It’s in recognising that discomfort and realising that therein lies the opportunities that the greatest investors make the most spectacular returns.”

But how can you act quickly when the market heads south? What do you do?

Prepare now for a market plunge later

Acting quickly requires much preparation beforehand.

One of the best things a stock investor can do in good times is to prepare a shopping list for bad times.

Forager research analyst Chloe Stokes explained in the latest edition of Ask A Fund Manager this week.

“My biggest regret came during the meltdown in March. We saw brilliant companies like Nike Inc and Lululemon Athletica Inc down more than 30% in a couple of days,” she told The Motley Fool.

“Those stocks would have been excellent investments at market prices, but because I never thought they were cheap enough to invest any time into, I didn’t have a thesis ready.”

Stokes is now a firm believer in having a target list ready – full of shares you wouldn’t buy now but would pounce on if they ever sunk.

“It might seem like a waste of time, but you never know when the opportunity could come along to own a high-quality business at a more than reasonable price,” she said.

“I wouldn’t want to miss out on owning some of my favourite businesses if the opportunity presents itself again.”

So create a watch list in a spreadsheet or your stockbroking platform. Write it on a piece of paper, if you have to.

Brainstorm shares that you wished you owned but never bought because they’ve been too expensive.

Then for each of them, pick a price at which you’d pounce.

Buying during a crash not for the faint-hearted

Mind you, even with a shopping list, it takes courage to buy shares when the market is collapsing.

Panic and anxiety set in, and even the professionals need plenty of gumption to pull it off.

Pengana Australian Equities senior fund manager Rhett Kessler called it “reaching across the abyss” — as in jumping over a deep canyon to try to make it to the other side.

It’s also named “vomit buying”, which might be more literally accurate.

“You literally buy something, then you stand up. You walk around the desk, trying your hardest to settle your stomach so that you don’t throw up,” said Kessler in October.

“Then you sit back down, and you buy some more at 5% lower.”

Even with decades of stock market experience, Kessler found last March very stressful.

“I can honestly say it was one of the toughest periods in my 30 years of experience in this industry.”

But Stokes reminds us the target list is worth doing.

“You go through something like March, and it’s always so upsetting not being able to buy them because you just hadn’t done work.”

More reading

• Could Nike be a millionaire-maker stock?

Motley Fool contributor Tony Yoo 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 BlueScope Steel Limited (ASX: BSL) share price is up more than 2% after the steel manufacturing company announced that its profit had more than doubled in the FY21 result.

BlueScope was positive about the current operating environment despite COVID-19. Here are some of the highlights from the report if you didn’t catch it earlier:

BlueScope’s FY21 half-year result

The company said that its net profit after tax (NPAT) grew by 78% to $330.3 million. BlueScope reported that its underlying net profit after tax (NPAT) was $332.8 million.

Underlying earnings before interest and tax (EBIT) for the half-year was $530.6 million, up 75% compared to the prior corresponding period.

BlueScope said that it has seen strong volume and improving steel spreads in the largest steelmaking business in Australia and the US. Australian steel products domestic despatches were the highest in a decade, driven by a resurgent residential construction sector.

The Australian steel products division delivered underlying EBIT of $259.1 million, up 103% compared to the prior corresponding period. There has been particularly strong demand for coated and painted products, leading to the strongest domestic volumes since 2010.

BlueScope’s building products division for Asia and North America generated underlying EBIT of $150.3 million, up 87% year on year. The North America business improved significantly, due to improved manufacturing performance and cyclical margin expansion. The building North America business saw 189% growth of underlying EBIT to $70.5 million.

North Star

BlueScope currently has a plan to expand its North Star mini-mill in Delta, Ohio, by around 850,000 tonnes per annum.

The company said that over the last six months, work has commenced work on installing the melt shop, caster and shuttle furnace. Equipment continues to be delivered to site, with ancillary equipment such as cranes, water and electricity also being installed.

Capital management

BlueScope said that its buy-back programme will remain on hold whilst it’s focusing on investing on the North Star expansion and there is ongoing uncertainty in market conditions.

However, the board did approve the payment of a 6 cent per share interim unfranked dividend.

Outlook for the second half of FY21

The company said that at the beginning of the second half, its order and despatch rates in key markets remain robust. Spot steel spreads in North America are materially higher than both the first half longer-term averages.

However, it is uncertain whether these conditions will continue throughout the half due to market factors.

BlueScope is expecting underlying EBIT in the second half of FY21 to be in the range of $750 million to $830 million.

More reading

• BlueScope (ASX:BSL) share price slides on results
• Reliance Worldwide (ASX:RWC) share price in spotlight as it unveils 82% profit surge
• Real reporting season surprise isn’t about profits but dividends
• The latest ASX stocks to be hit by broker downgrades
• The BlueScope (ASX:BSL) share price surges on a profit upgrade today

Motley Fool contributor Tristan Harrison 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 Smart Parking Ltd (ASX: SPZ) is rocketing today after the company announced a favourable outcome on its United Kingdom VAT matters.

During late afternoon trade, the parking technology company’s shares are up 14.8% to 15.5 cents.

Let’s take a look at what’s driving the Smart Parking share price higher.

What did Smart Parking announce?

In today’s release, Smart Parking advised that it has reached settlement with Her Majesty’s Revenue and Customs (HMRC) on the administration of parking breach notices. The company noted a series of adjustments as a result of the settled dispute. They are as follows:

• HMRC to withdraw assessments raised in August 2019 for $3 million which were provided for in the FY19 accounts;
• HMRC to refund an overpayment of input VAT of $2.9 million;
• Smart Parking to write back its profit of $6.9 million in the prior year input VAT. This consists of reversal of a $4 million provision in the FY20 accounts for unpaid input VAT, and a cash refund of $2.9 million for overpaid input VAT;
• Smart Parking to withdraw notices of appeal that had been lodged in relation to the matter; and
• Smart Parking to restrict input VAT on a small number of leased sites where the company acts as principal.

Smart Parking noted that its pre-tax profit would receive a boost going forward as a result of the applied adjustments. This is due to the agreed method of calculating VAT, which will positively impact the company’s bottom line.

Smart Parking further stated that if the new method had been implemented across its entire FY20 year, then pre-profit tax would stand $1.7 million higher. The company said that looking ahead, regardless of expanding customer base, customer mix and government lockdowns, there will be significant annual benefits of pre-tax profits.

Smart Parking share price snapshot

Over the last 12 months, the Smart Parking share price has been a weak performer due to the negative impact caused by COVID-19. The company’s shares hit a low of 7 cents last March before slowly working their way back up to sit today 20% down on pre-pandemic levels.

More reading

• BlueScope (ASX:BSL) share price rises after growing HY21 profit by 78%
• Why the Emu (ASX:EMU) share price is rocketing 67% today
• Here’s why the Syrah (ASX:SYR) share price is rocketing 15% today
• Why the Archtis (ASX:AR9) share price opened 17% higher today
• Can ASX travel shares stage a comeback?

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Smart Parking Ltd. 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 Emu NL (ASX: EMU) share price is rocketing today, up 62% in afternoon trading after posting gains of more than 118% earlier today.

Emu shares are surging after the gold explorer released some promising drill results from its Gnows Nest Project in Western Australia.

What drilling results did Emu report to send shares flying?

In today’s ASX release, Emu reported its maiden drilling program has confirmed and extended the high-grade gold mineralisation zone at its recently acquired Monte Cristo Gold prospect and its Gnows Nest Gold prospect.

To date, the company has received assay results from 33 drill holes, or 3,700 metres of its 9,000-metre reverse circulation (RC) drilling program at the project. Extensions to the high-grade gold lode were confirmed both at depth and along strike at Gnows Nest and Monte Cristo.

Emu stated that extensional drilling continues at its Gnows Nest prospect. The company expects to finalise the drill program by the end of February with additional assay results coming over the next 6 weeks.

Commenting on the promising drill results, Emu’s Chairman, Peter Thomas said:

These results provide early and strong encouragement for the potential of a materially large gold deposit emerging at Gnows Nest and could be the catalyst for the Company to transition from explorer to producer near term. Whilst we just might have a cub by the tail at the Gnows Nest Gold Project, we are excitedly awaiting the outcome of active programmes at all our projects during the remainder of the year.

Emu share price snapshot

As a microcap minerals explorer, the Emu share price is subject to some big swings. From 25 February 2020 through to 8 April shares plunged 75%. Since 8 April, the Emu share price has rocketed 790%, though not in any kind of straight line.

With today’s intraday gains factored in, shares of the ASX gold explorer are up 123% over the past 12 months. That compares to flat returns on the All Ordinaries Index (ASX: XAO) over that same time.

Year-to-date the Emu share price is also up 123%, having started 2021 at 4 cents per share, right where it was trading for at the beginning of 2020.

More reading

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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 Why the Emu (ASX:EMU) share price is rocketing 67% today appeared first on The Motley Fool Australia.

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