• Spacetalk (ASX:SPA) share price surges 77% on Telstra deal

    Surging ASX share price represented by the word BOOM written on bright yellow background

    The Spacetalk Ltd (ASX: SPA) share price is in the stratosphere today. At the time of writing, shares in the technology company are swapping hands for 19.5 cents each. That’s more than 77% higher than their last closing price of 11 cents before they entered a trading halt earlier this week.

    For comparison, the All Ordinaries Index (ASX: XAO) is currently down 0.56%.

    The monumental rise comes after investors reacted positively to news of a commercial deal with Telstra Corporation Ltd (ASX: TLS) and a $5 million loan facility from PURE Asset Management Pty Ltd.

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

    Spacetalk share price explodes on Telstra deal

    The Spacetalk share price on an absolute tear today. In a statement to the ASX, Spacetalk declared Telstra had agreed to sell its Adventurer devices in all retail stores, and online, by April 2021.

    The device will be placed in Telstra’s core wearables range after it is configured for the Telstra network.

    According to Spacetalk, Telstra plans to aggressively market the devices. It intends to use influencer channels, digital advertising, in-person pitching, and billboard placement within stores.

    Telstra will sell the technology outright or through payment plans. It also plans to roll out an Adventurer-specific SIM service plan in the near future.

    Speaking on the news, Spacetalk CEO Mark Fortunatow said:

    We are delighted by the ranging of Spacetalk Adventurer with Telstra, Australia’s leading telecommunications and technology company.

    This is a very strong endorsement of the quality of Spacetalk devices, with Adventurer to be placed on Telstra’s core wearable device range. It is also a recognition by Telstra of the growing market and customer need for Spacetalk devices, and our leadership in the category of kids connected smartwatches. Needless to say, we are extremely excited by the enhanced brand recognition and sales growth we expect from extending our customer reach with Australia’s largest MNO [mobile network operator].

    Telstra retail and regional executive Fiona Hayes also said:

    Smartwatches are the fastest growing market for wearables globally and the addition of Spacetalk will strengthen Telstra’s connected smartwatches offering. Spacetalk is a market leader in Australia in connected smartwatches for children and seniors, providing a practical solution for families to stay connected.

    The loan facility

    In a second announcement, Spacetalk also told the market it has secured a $5 million loan from PURE Asset Management. The credit will be available for immediate use.

    The loan is split into two components:

    1. A $3 million term loan facility at 9.5% interest with an option obligating Spacetalk to issue 11 million shares to PURE at a value of 30 cents each.
    2. A $2 million bridging facility at 12.5% interest.

    The term loan will span four years while the bridging facility will last two years. The company will use the credit to purchase inventory, invest in its brand, and for a range of other purposes.

    Spacetalk and Telstra share price snapshots

    Over the last 12-months, the Spacetalk share price has increased by around 117%. Most of these gains, however, occurred today. One year ago, the company’s share price was 9 cents. On Tuesday this week, it closed at 11 cents.

    The Telstra share price is currently up a much more modest 0.47% today. At the time of writing, shares in the telecom giant were selling for $3.205. Compared to this time last year, Telstra shares have remained relatively flat – losing around 2% of their value. The Telstra share price has, however, gained around 19% since reaching its 52-week low in October last year.

    Spacetalk and Telstra have current market capitalisations of $30.6 million and $37.8 billion respectively.

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    Motley Fool contributor Marc Sidarous 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.

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  • Why AGL, Clover, QBE, & Volpara shares are pushing higher today

    In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a disappointing decline. At the time of writing, the benchmark index is down 0.5% to 6,713.7 points.

    Four ASX shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

    AGL Energy Limited (ASX: AGL)

    The AGL share price is up over 1.5% to $9.60. This morning the energy company announced that it has finalised a new agreement to supply a proportion of the electricity requirement of the Portland Smelter aluminium smelter until July 2026. The agreement will take effect from 1 August 2021 when the existing supply contract ends. AGL advised that the new contract represents a mutually beneficial outcome on commercial terms, for a volume of 275 MW.

    Clover Corporation Limited (ASX: CLV)

    The Clover share price has jumped 9% to $1.80 despite there being no news out of the specialty ingredients company. However, earlier this week, analysts at UBS upgraded the company’s shares to a buy rating with a $2.00 price target. The broker believes that it could be a good COVID-19 recovery play for investors. Clover’s performance has been hit hard by subdued demand for infant formula ingredients during the pandemic.

    QBE Insurance Group Ltd (ASX: QBE)

    The QBE share price has climbed 3% to $9.95. Investors have been buying the insurance company’s shares after bond yields surged higher during overnight trade in the United States. Rising bond yields are good news for QBE as, like most insurers, the company invests heavily into fixed interest securities like bonds.

    Volpara Health Technologies Ltd (ASX: VHT)

    The Volpara share price has risen 2% to $1.32. Investors have been buying this healthcare technology company’s shares following a positive broker note out of Morgans this morning. In response to a recent contract win, Morgans has retained its add rating and lifted its price target to $1.94.

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends VOLPARA FPO NZ. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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 the Calix (ASX:CXL) share price is down today

    Ideas to save the planet

    The Calix Ltd (ASX: CXL) share price opened 5% lower this morning, as the company declared its plans to embrace future-focused technology, funded by a share placement.

    The tech company announced it would accelerate its investments in environmental, social and corporate governance (ESG) projects. At the time of writing, the Calix share price is trading at $2.19, down 2.67%.

    Let’s take a closer look at what the tech company announced this morning.

    Environmentally-friendly tech

    In today’s release, Calix advised it will issue 7 million new shares to sophisticated and professional investors at $2 each, hoping to raise $14 million for its technology projects. It was also offering a new share purchase plan to existing eligible shareholders, worth up to $30,000 per shareholder and capped at $3 million.

    A large portion of the capital raised will go towards the company’s lithium manganese oxide (LMO) technology for lithium-ion cathodes. Calix specified that $4.5 million of the funds would be used to expand its testing program and lab capacity for the technology.

    The company claims its LMO technology uses 6 times less energy in production than conventional manufacturing methods.

    The capital raised from the share placement will also go towards the company’s other green projects. These include:

    • Technology to reduce CO2 emissions in the cement, lime, and magnesia industries.
    • A non-toxic, broad-spectrum fertiliser with anti-fungal and anti-pest properties.
    • An earth-friendly product for wastewater treatment and another to refresh freshwater systems prone to green-algae outbreaks.
    • Several trials and studies for more sustainable processing of various minerals and chemicals.

    The announcement’s accompanying investor presentation showed Calix’s belief in the importance of ESG strategies.

    Commentary from management

    Calix CEO Phil Hodgson said Calix had received a “significant increase” in investors asking after its ESG strategies.

    To turn these enquiries into value, we need more engineers, equipment, and dealmakers.

    Following a strategic review on generating best value for our shareholders, we felt it was the right time to hit the accelerator and access some additional capital to fully resource these opportunities.

    Calix share price snapshot

    The Calix share price has risen by 109.7% year to date, having started the year trading at $1.03. It is also up by 224% over the last 12 months.

    Calix has a market capitalisation of around $334 million with approximately 148 million shares outstanding, although that number will increase by at least 7 million next week.  

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  • Vital Metals (ASX:VML) share price falls following placement

    falling asx share price represented by sad looking builder

    Vital Metals Limited (ASX:VML) shares are sliding lower today after the company announced the successful completion of an institutional share placement to fund works at its rare earth mine in Canada.

    At the time of writing, the Vital Metals share price is trading 5% lower at 7.6 cents. The rare earth mining company’s placement raised $43 million, issuing 661.5 million new shares at 6.5 cents each.

    For context, the All Ordinaries Index (ASX: XAO) is also slumping today, down 0.79% for the day so far.

    Let’s take a closer look at Vital Metals’ announcement this morning.

    Canada’s first rare earth producer

    Vital Metals announced this morning that after a successful share placement, it will begin works at its Nechalacho rare earths project this month.

    The project is Canada’s first rare earths mining operation. Vital Metals hopes to become the largest independent supplier of clean mixed rare earth feedstock outside of China.

    The company claims Nechalacho is one of the highest grade rare earth deposits on earth.

    Beyond allowing the commencement of works, the capital raised will also fund construction of an offsite extraction plant and the processing of mining minerals. Additionally, some will go towards drilling to define a plan for stage 2 of the project.

    Vital Metals other project, Wigu Hill, will also benefit from the raised capital. Part of it will go towards drilling, sampling and testing at the site.

    Commentary from management

    Vital Metals managing director, Geoff Atkins, said the company is pleased to receive such strong support:

    This support validates our strategy to produce rare earths for a globally diversified supply chain. As demand for critical minerals including rare earths continues to grow, our Canadian based project is positioned to supply customers in North America, Europe and Asia.

    This placement ensures Stage 1 operations at Nechalacho are fully funded. We are excited to complete this milestone to allow mining operations to commence as we transition to a rare earth producer next quarter.

    Vital Metals share price snapshot

    This morning, the Vital Metals share price opened 7.5% lower than Tuesday’s close before partially recovering to its current level. This came after the company’s shares spent Wednesday and Thursday in a trading halt pending the release of further information on the capital raise.

    The company’s share price is still up by 147% year to date, having started the year trading at 3 cents. It’s also up 640% over the last 12 months.

    Vital Metals has a market capitalisation of almost $214 million with approximately 2.6 billion shares outstanding.

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  • Why Tesla stock fell sharply on Thursday

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

    A stockmarket chart on a red background with an arrow going down, indicating falling share prices

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

    What happened

    Shares of electric vehicle maker Tesla Inc(NASDAQ: TSLA) fell on Thursday, declining as much as 4.9%. As of 1.30 pm EDT, however, shares were down 4.1%.

    The stock’s decline is likely primarily due to a bearish day in the market for growth stocks.

    So what

    Many tech stocks slid sharply on Thursday. Highlighting a bearish day in the market for tech stocks is the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC)’s 1.5% decline as of this writing. Many growth stocks like Tesla fell even more.

    Growth stocks have struggled to fully rebound after getting pounded in the second half of February and early March. Shares of these stocks seem to be taking a breather after big gains in 2020. Tesla stock is down 18% since mid-February. Its shares, however, are still well above 2021 lows below $600 in early March. But they’re far from recovering to a high of more than $900.

    A pullback in growth stocks has been largely attributed to rising 10-year Treasury yield rates. With improving return prospects in safer and alternative investments to equities, some investors may be pocketing gains from growth stocks and putting capital in bonds.

    Now what

    Tesla’s stock and business have been on a roll recently.

    The company reported 46% year-over-year revenue growth in the fourth quarter of 2020 and analysts, on average, expect even faster growth this year.

    Despite the stock’s pullback from highs earlier this year, shares are up 59% over the last six months and 682% over the past 12 months. The S&P 500 Index (INDEXSP: .INX) rose 18% and 57%, respectively, during those periods.

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

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  • Why the AGL (ASX:AGL) share price is avoiding the market selloff

    hand on touch screen lit up by a share price chart moving higher

    The AGL Energy Limited (ASX: AGL) share price is avoiding the market selloff today and pushing higher.

    At the time of writing, the energy company’s shares are up over 1% to $9.56.

    Why is the AGL share price pushing higher?

    Investors have been buying AGL shares this morning for a couple of reasons.

    One is the market selloff, which has led to an increase in demand for safe haven assets.

    For example, the shares of fellow utility companies APA Group (ASX: APA) and Mercury NZ Ltd (ASX: MCY) are also rising during morning trade.

    What else is supporting AGL’s shares?

    Also giving the AGL share price a boost today has been the release of an announcement relating to the Portland Smelter in Victoria.

    According to the release, AGL has finalised a new agreement to supply a proportion of the electricity requirement of the Portland Smelter aluminium smelter until July 2026. The agreement will take effect from 1 August 2021 when the existing supply contract ends.

    AGL advised that the new contract represents a mutually beneficial outcome on commercial terms, for a volume of 275 MW. It also provides the company with some flexibility, including rights in relation to the short-term reduction of volume at times of peak demand.

    AGL Managing Director & Chief Executive Officer, Brett Redman, said: “AGL recognises the importance of the Portland smelter to the communities it supports and as a large wholesale electricity user. The total Portland load comprises approximately 10 percent of Victoria’s total energy demand and we are pleased to play our part in securing its continued operations.”

    Shareholders will no doubt be hoping this is the start of better times for the AGL share price. After all, year to date the company’s shares are down a disappointing 21%.

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  • Shocking new numbers reveal Sydney Airport (ASX:SYD) share price resilience

    falling asx share price represented by child looking shocked at computer screen

    The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is following the wider S&P/ASX 200 Index (ASX: XJO) lower today. The ASX 200 is down 1.05% while Sydney Airport shares are down 2.7%.

    But looking at Sydney Airport’s wider performance since 1 November 2020 – shares are up 12% – you’d be forgiven for thinking that business was picking up for the ASX 200 travel share.

    It’s not.

    Traffic drought

    The Sydney Airport share price is sliding this morning following the release of the company’s February traffic figures.

    The numbers reveal a slightly lower year-on-year decline than the airport’s January Airport Traffic Performance report. The January 2021 figures revealed total passenger numbers remained more than 94% lower than in January 2020, right before COVID-19 began its global march, bringing international and even most domestic travel in Australia to a virtual halt.

    Still, before the pandemic struck, the February traffic figures just released would be nothing short of shocking.

    Sydney Airport reported a 79.8% drop in its total passenger traffic compared to the previous corresponding period, with 623,000 passengers.

    With state borders reopening later in February and domestic air travel slowly reviving, the 596,000 domestic passengers represent a 70.0% fall from February 2020 numbers.

    Not surprisingly, the international passenger figures remain at a trickle. Only 27,000 international passengers passed through the airport in February, down 97.5% year on year.

    Breaking it down to nationalities, Australians were the largest cohort of international travellers coming through the airport, with China number two, New Zealand number three, India number four and the United States number five.

    Sydney Airport said, “The downturn in international passenger traffic is expected to persist until government travel restrictions are eased.”

    Sydney Airport share price snapshot

    Despite the drought in traffic, Sydney Airport shares gained 3.7% in February, as investors looked beyond the current restrictions towards the reopening as vaccines begin to roll out across the world.

    Since the first successful vaccine rumours hit the news at the start of November, Sydney Airport shares are up by 12.5%. Over the past 12 months, shares are up by around 34%, compared to a 40% gain on the ASX 200.

    Year to date, the Sydney Airport share price is down 4%.

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  • Wisr (ASX:WZR) share price jumps on strong trading update

    rising asx share price represented by woman jumping in the air happily

    The Wisr Ltd (ASX: WZR) share price is edging higher this morning after the neo-lender provided an update on its trading performance. At the time of writing, the Wisr share price is swapping hands for 21.5 cents, up 2.38%.

    In comparison, the All Ordinaries Index (ASX: XAO) is currently slumping 0.92% lower for the day so far.

    Quick take on Wisr

    Founded in 2014, Wisr is an Australian non-bank lender that offers personal and business lending services. These include personal loans, financial products, and investment solutions, among other services.

    According to Wisr, it offers consumers a more attractive option to traditional banks by delivering competitive interest rates and tailoring customer loans.

    What’s boosting the Wisr share price?

    Investors appear to be excited about the company’s recent accomplishments, sending the Wisr share price higher today.

    According to this morning’s release, Wisr continues to deliver exceptional growth on its books.

    For the two months ending 28 February 2021, the company reported a loan volume of $58.8 million. This reflects an increase of 138% over the prior corresponding period in which $24.7 million was achieved.

    The robust result for the start of 2021 came from a record $35.5 million monthly loan volume for February. Wisr highlighted that this is a 52% jump on the previous month of January which saw $23.3 million in loan volume.

    Addressable market opportunity

    In its investor day presentation, the company noted that the consumer lending market stood at $93 billion in November 2020. Of this, Wisr holds a mere 0.22% market share with its $207 million warehouse facility.

    Over the medium term, the company plans to extend its loan book to $1 billion, and aggressively capture a larger slice of market share.

    Wisr share price snapshot

    The Wisr share price has accelerated by nearly 170% in the past 12 months and is up 13% year to date. The company’s shares surged strongly in early 2020, reaching a 52-week high of 27.5 cents last July, before trending lower.

    Based on valuation grounds, Wisr commands a market capitalisation of around $230 million, with close to 1.1 billion shares outstanding.

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  • Why the Afterpay (ASX:APT) share price may be under pressure today

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    The Afterpay Ltd (ASX: APT) share price may be under pressure today following the US market’s heavy tech-driven selloff. 

    What happened to the Nasdaq overnight? 

    The Nasdaq Composite (NASDAQ: .IXIC) closed 3.02% lower on Thursday night as rising 10-year Treasury yield rates continued to threaten equity markets. 

    The global economy is showing signs of life as vaccine efforts attempt to put COVID-19 at bay. As economic growth starts to pick up the pace, inflation is likely to follow suit.

    And when inflation starts to pick up, so does the question of whether or not central banks need to increase interest rates. The recent advance in yields reflects the anticipation of higher inflation and interest rate hikes being brought forward. 

    Tech and growth sectors are most sensitive to rising interest rates. While these are the stocks that outperformed the market when yields were crashing, they could also be the ones to underperform when yields rise. 

    What does this mean for the Afterpay share price?

    Since mid-February, the Afterpay share price hasn’t been able to catch a break lately, losing ~30% of its value. Its shares have continued to face mounting pressure today, down 2.6% at the time of writing. 

    It appears Afterpay’s recent weakness is largely outside its control, with the S&P/ASX Information Technology (INDEXASX: XIJ) slumping 13.60% in the past month. 

    The US tech-heavy selloff on Thursday night could spark further weakness in the Afterpay share price. This, in turn, could be exacerbated by the heavy selling of the third-largest buy now, pay later player in the US, Affirm Holdings Inc (NASDAQ: AFRM)

    The Affirm share price finished the overnight session down 8.26% to a near all-time low of $74.39. Its shares debuted on the Nasdaq back on 13 January 2021 at an initial public offering (IPO) price of US$39. Affirm’s shares closed at $97 on the first day of listing before running to as high as $146.90 just one month later.

    The recent concerns over rising interest rates and weakness in tech shares have managed to erase all of Affirm’s gains. 

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  • Creso Pharma (ASX:CPH) share price lower despite cannabis sales update

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    The Creso Pharma Ltd (ASX: CPH) share price is trading lower on Friday despite the release of a positive announcement.

    At the time of writing, the cannabis company’s shares are down over 2% to 22.5 cents.

    What did Creso Pharma announce?

    This morning Creso Pharma announced that its wholly owned Canadian subsidiary, Mernova Medicinal, has secured three new purchase orders.

    According to the release, the orders have a total value of C$177,122.40 (A$183,019.551) and include the first purchase order for Mernova’s Pre-roll Joint range, sold under the Ritual Sticks brand.

    The release explains that the Ritual Sticks offering is comprised of new Pre-roll Joints which utilise the company’s top-quality indoor grown, hand trimmed, hang dried, cured, artisanal, craft cannabis.

    The company advised that to produce the line of Pre-roll Joints, Mernova exclusively utilises only the same high-quality cannabis that is sold under the Ritual Green brand.

    The launch of the offering follows considerable product development initiatives, as well as a lengthy registration process with Health Canada.

    Management notes that the Pre-roll market unlocks another significant addressable market for Mernova.

    “A major achievement”

    Mernova’s Managing Director, Jack Yu, believes this purchase order is a major achievement for the business.

    He said: “Receiving our first PO for our Ritual Sticks brand of Pre-roll Joints is a major achievement for Mernova, and is the result of considerable R&D to select the right equipment and develop our processes. We wanted to produce the best Pre-roll joints possible, and are very excited to get our new products in the hands of customers in the coming weeks, so that they can provide their feedback.”

    “One thing that sets us apart is that we use only the same high-quality cannabis as sold under our Ritual Green brand of dried flower. We expect these products to open a much broader market for Mernova, as they are priced as entry-level products, which should help introduce our products to a much larger customer base, and they offer a level of convenience that many will appreciate.”

    Mr Yu revealed that Mernova is experiencing strong sales growth and appears confident this will continue.

    He explained: “Mernova continues to witness very strong sales growth and the additional purchase orders received recently are validation of this. Our brand recognition has increased considerably over the last few months, particularly in Nova Scotia, and Mernova has generated a reputation as one of the best craft cannabis growers in Canada. Most importantly, our ongoing sales growth has put the business on a fast track towards a stable, and recurring revenue-generating model.”

    “We expect demand for our products to continue, particularly with the introduction of our Pre-roll Joint range, and we look forward to updating shareholders on new purchase orders in the near term,” he concluded.

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    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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