ASX mining shares were given a boost today, on news that Goldman Sachs analysts have upgraded the broker’s iron ore and copper price forecasts, and raised the target prices for some big miners. 

Which shares were upgraded

Goldman Sachs has upgraded its target prices for the big three mining companies: BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG).

The broker said BHP was the best share to play the strong copper price, and lifted the miner’s earnings estimates for the 2021 and 2022 financial years by 26% and 37% respectively.

Goldman lifted its price target for BHP by 8% to $45, and rated the shares a “buy”.

The broker also raised Rio Tinto’s earnings forecasts for 2021 and 2022 by 48% and 49% respectively, lifting its share price target 11% to $108.10 a share. The broker rated Rio shares “neutral”.

Meanwhile, Fortescue Metals’ earnings for the two years were raised 35% and 71%, and its price target increased by 18% to $20.10 a share. The broker rated Fortescue shares “neutral”.

Higher iron ore and copper price forecasts

Goldman said the upgrades were underpinned by its bullish forecasts for the iron ore and copper prices.

The broker lifted its 2021 iron ore price forecast up 33% to US$120 a tonne.

Longer range forecasts for 2022 and 2023 were also raised by 27% and 11% to US$95 a tonne and US$80 a tonne respectively. 

Iron ore has recently rallied to US$148 a tonne after the Brazilian producer Vale SA cut its production guidance. The Brazilian miner is having ongoing production problems after an accident at one of its mines. The company has said that it was unlikely to be back at full output before the end of 2022.

Meanwhile, Goldman also lifted its copper price forecast for 2021 by 18% to US$3.91 a pound, and by 23% to US$4.17 a pound in 2023.

Iron ore supply to China

The upgrades today have given further support for Australia’s iron ore exporters to China, who experts said would not be significantly impacted by the recent political spat with Beijing.

Experts said that China has few alternatives to replace Australian iron ore imports, with more than half of iron ore supply globally shipped from this country. At best, China could only get 56% of its current volumes if it completely cut off Australia – according to analysts. This has so far undermined Beijing’s ability to coerce Australia economically.

Share price movements today

At the time of writing, the BHP share price is up 0.77% to $42.58, and the Rio Tinto share price is almost unchanged at $115. Meanwhile, Fortescue Metal share price has lifted 0.98% to $21.67.

More reading

• Why the Fortescue (ASX:FMG) share price hit a record high today
• Iron ore exports unlikely to slow down amid Australia–China trade tension: experts
• The Aussie dollar just hit a new 2-year high. Here’s what that means
• This dividend share has the most franking credits on the ASX
• 2 excellent ASX dividend shares with 6%+ yields

Motley Fool contributor Eddy Sunarto owns shares of BHP Billiton Limited. 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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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is pushing higher again. The benchmark index is currently up 0.7% to 6,735.7 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

Abacus Property Group (ASX: ABP)

The Abacus share price is down 4.5% to $2.96. This follows the completion of its institutional entitlement offer. The property company raised approximately $356 million at a price of $2.90 per new share. This represents a 6.5% discount to its last close price. The proceeds will be used to repay debt and increase its acquisition capacity for continued growth over the medium term.

Emerge Gaming Ltd (ASX: EM1)

The Emerge Gaming share price has crashed a massive 43.5% lower to 5.8 cents. Investors have been heading to the exits in their droves after the gaming technology company revealed just 25,674 paid subscriptions to its MIGGSTER platform. In October the company claimed to have over 6 million pre-registrations for the platform. This means it has so far converted just 0.43% of its pre-registrations.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo Interactive share price has sunk 7% lower to $12.81. This morning analysts at UBS initiated coverage on the company with a neutral rating and $14.10 price target. The broker notes that Tabcorp Holdings Limited (ASX: TAH) appears to be winning market share in the local online market. It intends to wait for the trend to stabilise before considering a change to its rating.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is down almost 2% to $22.71. The catalyst for this decline appears to have been a broker note out of Ord Minnett. This morning the broker downgraded its shares to a hold rating with a $23.80 price target. Its analysts note that the energy producer’s CEO has announced plans to retire next year. The broker was surprised by this and notes that it comes at a critical time.

More reading

• ASX 200 up 0.7%: CBA update, IGO enters lithium market, Healius jumps
• Why the Emerge Gaming (ASX:EM1) share price crashed 50% lower today
• Here’s why the Abacus Property (ASX:ABP) share price is in a trading halt
• Woodside (ASX:WPL) share price flat on CEO retirement
• ASX 200 up 0.1%: Bank of Queensland update, Link jumps, Woodside CEO to retire

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Abacus, Emerge Gaming, Jumbo, & Woodside shares are dropping lower appeared first on The Motley Fool Australia.

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The Resonance Health Limited (ASX: RHT) share price is shooting the lights out today. This comes after the company announced it has received a 510(k) clearance from the United States Food and Drug Administration (FDA) for its HepaFat-AI software.

At the time of writing, the Resonance Health share price is up 38.7% to 21.5 cents. In comparison, the All Ordinaires Index (ASX: XAO) is up 0.7% to 6,969 points.

What’s driving the Resonance Health share price?

The Resonance Health share price is surging today following the company’s positive FDA clearance announcement.

According to Resonance Health, the FDA has cleared the pathway for the company to begin commercialisation for its HepaFat-AI technology.

HepaFat-AI is a medical imagining technology that uses artificial intelligence to assess liver fat. The software analyses volumetric liver fat fraction (VLFF), proton density fat fraction (PDFF), and steatosis grade in individuals who suffer from fatty liver disease.

Once screened, a doctor or physician is able to explain the results to the patient which can, in turn, support them in weight loss management. In addition, the report can also evaluate if a person has a suitable liver for becoming a donor.

It is estimated that up to 30% of the world’s population suffers from non-alcoholic fatty liver disease (NAFLD). This represents up to 2.3 billion people who face the possible risk of developing liver damage and fibrosis.

In financial terms, Resonance reported that over the next 10 years, the increasing incidence of NAFLD could cost the healthcare system $1 trillion in the United States alone. Furthermore, another 334 billion euros could expected to be sunk into treating the disease across Germany, France, Italy and the United Kingdom.

The company said that while there are currently a number of ways to measure liver fat, comparing results from different scan types is very difficult, with results highly variable. HepaFat-AI aims to improve on traditional testing measures by delivering a standardised assessment that allows for accurate comparisons across various scanner types. The company also highlighted that steatosis grading can be time consuming using other methods, however its software has automated the process, allowing for results to be produced much faster.

Resonance Health stated that it intends to pursue multiple channels to get HepaFat-AI to market.

What did management say?

Resonance Health CEO Ms Alison Laws commented on HepaFat-AI’s applications and the result from the FDA. She said:

The use of artificial intelligence in medical image review and assessment has the ability to support and transform radiology via the delivery of rapid, reproducible results whenever needed. HepaFat-AI, the Company’s second AI-based medical device to gain clearance from the FDA, will enable radiologists to report three key parameters (VLFF, PDFF, and steatosis grade) in patients in this significant and ever-increasing addressable market.

The clearance from the FDA to assess and report all three metrics in HepaFat-AI patient reports is an outstanding result for the Company and an outstanding result for the product itself.

Resonance Health share price summary

The Resonance Health share price has been on the rise since late September, delivering more than a 50% gain to shareholders. Resonance shares are, however, still 17% lower since the beginning of the year.

The Resonance share price reached a 52-week high of 28 cents in January and a 52-week low of 9.2 cents in March.

More reading

• Why Afterpay, Creso Pharma, Healius, & Resonance Health shares are storming higher

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 Resonance Health 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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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.

Once the stuff of futuristic movies, the electrification of the automobile industry seems all but inevitable today. While Tesla Inc (NASDAQ: TSLA) receives most of the attention from analysts and investors, there seems to be a new headline every day about an automaker touting its upcoming electric vehicle, or EV. Investors wishing to participate in this new ‘gold-rush’ may be forgiven for hesitating to pick winners from losers from the vast offering at hand. One way to participate in this trend may be to invest instead in the companies making ‘picks and shovels’ rather than in the ‘gold prospectors’ themselves.

The one thing every EV needs more of

That would be range, or how long an EV can go on a full charge. As consumers consider buying an EV, range becomes key for at least two reasons: First, since there aren’t as many EV chargers as there are gas stations, consumers experience ‘range anxiety,’ or the idea that they can get stuck in the middle of nowhere without a way to recharge.

Second, recharging an EV takes a lot longer than filling up. So, the longer the range, the bigger the market for, or the number of people who may buy, that EV. Today, range is arguably the most objective differentiator between a Tesla and all other EVs in the market.

Battery technology determines range. But battery technology is key in another important way: It is what makes EVs more expensive than equivalent gasoline cars today. 

Imagine having an EV that could go seven hours between charges — to then recharge in about 15 minutes. Now imagine you could buy this EV for about the same price as a gasoline car. This is what QuantumScape (NYSE: QS) claims its product will deliver to the EV industry.

A solid story

Many companies have worked on solid-state batteries over the years — with nearly all of them failing to make a commercially viable product. QuantumScape itself has been working on lithium-metal batteries, a type of solid-state battery, since 2010. The company claims its batteries will store over 80% more energy than existing lithium-ion competitors while reducing costs substantially. To put this into perspective, Tesla recently announced breakthroughs in battery manufacturing that should deliver up to 54% additional range in about two years.

80% improvement at a lower cost are tall claims for any product. However, several things set QuantumScape apart. For one, it has attracted investment from a number of high-caliber investors: It received $300 million from Volkswagen (OTC: VWAGY), the largest automaker in the world, and arguably one of the most committed to leading the EV transition, as well as venture capitalists such as Bill Gates and Kleiner Perkins. At the end of November 2020, it executed a successful reverse merger with Kensington Capital Acquisition Corp. (NYSE: KCAC), a SPAC, including money from legendary investor John Doerr and Tesla co-founder JB Straubel, just to name a few. The merger put the company’s enterprise value — or the total value of its stock, cash, and debt — at $3.3 billion. And after the merger, the combined entity has achieved a market capitalisation (the value of all of its outstanding stock times its price) of over $14 billion. 

The company’s relationship with Volkswagen gives it another leg up: A large, marquee customer. By 2029, Volkswagen plans to sell over 22 million vehicles across about 70 EV models. While QuantumScape expects Volkswagen to be the first company to commercialize its products, it plans on selling its batteries to many other automakers.

Its executive team is no less impressive, with a number of well-known Silicon Valley entrepreneurs, and even the chair of Stanford’s mechanical engineering department, on its executive team and board.

What’s the catch?

While Volkswagen has successfully tested initial versions of QuantumScape’s batteries, the company still has a lot of work to do to further develop key parts of the technology and turn them into a product that can be manufactured affordably and at scale. The company’s recent merger and listing provided it with fresh cash — to the tune of $700 million — that it will put to work to do just that.

This also means, however, that the company won’t have a product to sell, or any meaningful revenue, for a while — until at least 2024, actually. So, significant stock appreciation may take a few years and will be determined by the company’s progress toward product development and manufacturing milestones rather than by traditional financial metrics such as revenue, free cash flow, or gross margins.

Is QuantumScape worth the risk? Investing in an early-stage company, or a start-up is mostly about maximizing the company’s likelihood of success while limiting the risk.

As far as potential, QuantumScape certainly checks most of the boxes: The team that led the SPAC and now leads the merged company reads like a who’s-who of technological innovation, industry experience, execution, and investing savvy. The company’s product promises much-needed disruption in a young industry with lots of momentum and impressive growth potential. And while revenue is still several years away, the company already has a very large, marquee customer, and is valued at roughly one times 2027 estimated revenue. So, assuming the company hits its projected milestones, its stock has a ton of upside.

As far as limiting risk, however, Fools considering an investment in QuantumScape should probably take a conservative approach, hedge their bets, and avoid putting all of their hard-earned dollars on a small handful of high-risk/high-reward stocks.

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

More reading

• Tesla is nearly unstoppable following a $5 billion capital raise
• Why the Talga (ASX:TLG) share price surged by 5% today
• Cimic (ASX:CIM) share price inches up on $112 million contract wins
• Here’s how world’s 10 richest made $1.5 trillion from COVID-19
• Elon Musk wants to steer Tesla towards higher profits

Luis Morales owns shares of QuantumScape and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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 About to invest in Tesla? Consider this battery stock instead appeared first on The Motley Fool Australia.

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

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The Creso Pharma Ltd (ASX: CPH) share price has continued its remarkable run on Wednesday.

At the time of writing, the cannabis company’s shares are up a massive 96% to a 52-week high of 46 cents.

This means the Creso Pharma share price has now rocketed an incredibly devilish 666% since this time last week.

This takes the company’s market capitalisation beyond $300 million.

Why is the Creso Pharma share price rocketing higher?

There are a couple of catalysts for the stunning rise in the Creso Pharma share price.

The first is news over the last few days that the UN has announced a landmark decision to reclassify cannabis as a less dangerous drug and the US House of Representatives has voted to decriminalise cannabis. 

Co-founder and Director, Boaz Wachtel, commented: “Creso is very well positioned to capitalise on opportunities arising from the market in the USA, including expanding distribution of its existing cannabis products through the scale up its operations in Canada and Switzerland. As a listed vehicle with access to capital, Creso is also an attractive partner for merger and acquisition opportunities, and, following the appointment of Canopy Growth Founder, Bruce Linton to Creso earlier this year, the Company looks forward to exploring such opportunities for the benefit of its shareholders.”

Canada expansion.

Also giving the company’s shares a boost was the release of an announcement this morning.

Creso Pharma has announced plans to expand into Canada’s largest recreational market. This follows the receipt of orders worth ~C$230,000 from the Province of Ontario and a maiden purchase order from the Yukon Liquor Corporation.

The company notes that these orders open potential opportunities for new Canadian markets in Ontario and the Yukon, which have recorded combined sales for recreational cannabis of over C$300 million for year to date.

Management commented: “We are proud to announce that Mernova has been chosen to become part of a very select group of licensed producers with cannabis products for sale in the Yukon. This is a major achievement for us, and we expect growth to continue across Canada and, with our pending entry into Ontario, Canada’s largest recreational market, we expect rapid growth to continue.”

Creso Pharma placement.

Interestingly, prior to the Creso Pharma share price rocketing higher this month, the company had announced a $6 million placement comprising 250 million shares at an issue price of just 2.4 cents.

Based on a share price of 46 cents, those 250 million shares now have a value of $115 million.

Unfortunately for those that were due to take part in this placement, the vote to approve this placement hasn’t happened yet and they’ve missed out on these stellar gains.

Though, they still stand to benefit from a significant discount if shareholders approve the issue on 23 December.

Last month, Creso explained: “The quantum of future placement shares to be issued is based on a maximum amount to be raised of $6,000,000, at an issue price which will not be less than 75% of the 15 trading day VWAP immediately before the date on which the issue price is agreed by the Company.”

A 75% discount to the current share price would be approximately 11.5 cents per share.

Though, it wouldn’t be at all surprising if the company scrapped this placement and launched a much larger capital raising to take advantage of this significant share price increase.

More reading

• Why Afterpay, Creso Pharma, Healius, & Resonance Health shares are storming higher
• Why Creso Pharma and these ASX shares just hit 52-week highs or better
• Zip and Creso Pharma were among the most traded shares on the ASX last week
• Why the Creso (ASX:CPH) share price is rocketing 30% today
• Creso Pharma (ASX:CPH) share price up 8% today, 200% in a week

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

The post Why the Creso Pharma (ASX:CPH) share price is rocketing 96% higher today appeared first on The Motley Fool Australia.

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The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price has lifted 2% this morning following its annual general meeting (AGM).

The investment house’s shares are trading at $29.59 at the time of writing, up by 58 cents.

Highlights from the AGM

Washington H. Soul Pattinson provided an update on the first four months to 30 November.

The company says that its financial services portfolio is up 16%, while its pharmaceutical portfolio is also up by 10% during this period.

Its base metals investments are also performing well this month, with copper and zinc prices increasing by 20% and 21% respectively.

Meanwhile, the recovery in thermal coal price of up to 33% is underpinning its stake in New Hope Corporation Limited (ASX: NHC).

In terms of outlook, Washington H. Soul Pattinson says that cash generation from the portfolio remains strong to support future dividends, while liquidity is readily available for new opportunities and investments.

Disappointing FY20 

Earlier in the year, the company had reported a 44% full-year decrease in its underlying net profit before tax (NPAT) to $169.7 million. 

The company said that the fall in profits were due to New Hope experiencing falling coal prices, as well as lower coal production from its Acland mines.

The disappointing results were also caused by COVID-19-related impact to its Brickworks Limited (ASX: BKW) building products business. 

The Washington H. Soul Pattinson portfolio

Washington H. Soul Pattinson says that over the last 20 years, its total shareholder return (TSR) has outperformed the market by 14.3% per annum.

During this 20-year period, an investment in Washington H. Soul Pattinson appreciated approximately 13.5 times, while an investment in the index increased by just 2.3 times.

Washington H. Soul Pattinson says it is also the only company in the top 500 listed companies in Australia to have increased its dividend every year for the last 20 years, and that it hasn’t  missed paying dividends since listing in 1903.

As of today, the company’s top investment is in its Telecommunications Portfolio, representing 35% of the overall portfolio. This is followed by investment in Brickworks, which makes up 25.5%. The stake in New Hope rounds up the top three, making up 10% of Washington H. Soul Pattinson’s portfolio.

About the Washington H. Soul Pattinson share price in 2020

The Washington H. Soul Pattinson share price has gained almost 40% this year, after dropping 20% in April. The share price is currently closing in on its 52-week high of $29.66. 

The company commands a market cap of $6.95 billion.

More reading

• 3 reasons why Soul Patts (ASX:SOL) is a great ASX dividend share
• This dividend share has the most franking credits on the ASX
• How to get a passive income of $50,000 per year from ASX dividend shares
• Got money to invest? Here are 3 ASX dividend shares to buy
• Got cash to invest? Here’s 3 ASX shares to buy

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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 Esports Mogul Ltd (ASX: ESH) share price is down 5% in early afternoon trading. The fall comes after the company reported that its esports platform is going mobile.

Despite today’s fall, shareholders of the thinly traded stock who have held on through this bumpy year, with sharp downswings followed by even sharper rebounds, are currently sitting on a gain of 80% in 2020.

That compares to a gain of just over 2% for the S&P/ASX 200 Index (ASX: XJO).

What does Esports Mogul do?

Esports Mogul owns and operates an esports (online sports games) media and software business. Mogul brings together players, game developers and tournament organisers with an initial focus in Australia and Southeast Asia.

The company’s esports tournament and matchmaking platform offer automation for major esports titles with streaming functionality and in platform chat capabilities. Mogul’s revenue is derived from sponsors for its esports events and partnerships with brands.

What’s driving the Esports Mogul share price?

In an ASX announcement this morning, Mogul revealed it has begun its move into mobile with in-market beta testing of its Mogul App.

Currently, gamers wanting to play in mobile esport title tournaments do so online, via web platforms that includes the company’s mogul.gg. Mogul says its online move will give players and publishers “a world-first experience on one device”.

Esports Mogul said the global mobile games market is forecast to generate US$86.3 billion (AU$116.7 billion) in 2020. That already represents 49% of the total games market. And mobile is growing twice as fast as PC and console gaming.

The beta testing of the Mogul App is part of the company’s plans for a broader global release of its esports tournament experience for the largest gaming segment.

Commenting on the mobile rollout, Mogul CEO Michael Rubinelli said:

This is an exciting step on our progression towards becoming the definitive global esports destination for branded sponsors and player of all abilities, gaming interest, and location, independent of their platform of choice…. Players will be able to effortlessly create, host, and compete in all of the best branded mobile esports tournaments available anywhere.

With Esports Mogul’s share price sliding today, could today’s news have already been largely priced into the stock?

More reading

• ASX 200 up 0.7%: CBA update, IGO enters lithium market, Healius jumps
• Morgans picks the best ASX stocks to buy for 2021
• S&P Global set to launch world’s first cryptocurrency index
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 up on Tuesday

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.

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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) is on course to continue its positive run. The benchmark index is currently up 0.7% to 6,732.9 points.

Here’s what is happening on the market today:

UK COVID-19 vaccine gives ASX 200 a boost.

The rollout of the Pfizer COVID-19 vaccine in the United Kingdom has begun and appears to have given investor sentiment a boost today. According to the BBC, a 90-year-old grandmother became the first person in the world to be given the vaccine. That was the first of 800,000 doses of the vaccine that will be distributed in the coming weeks.

CBA divestment update.

The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher today after providing an update on its divestments. According to the release, the China Banking and Insurance Regulatory Commission has granted approval for the divestment of the bank’s 37.5% equity interest in BoCommLife to MS&AD Insurance Group. The final sale proceeds are expected to be $886 million, which, combined with a revision to other non-cash gains on previous divestments, is expected to boost its CET1 ratio by 29 basis points.

IGO enters lithium market.

The IGO Ltd (ASX: IGO) share price is in a trading halt today after announcing a binding agreement with Chinese company Tianqi Lithium Corporation to acquire a 49% stake in its Australian lithium mining business for $1.9 billion. The nickel producer intends to fund the deal through a combination of $1.1 billion of new debt facilities, an equity raising of up to $766 million, and existing cash reserves of between $85 million and $149 million.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Wednesday has been the Healius Ltd (ASX: HLS) share price with a 5% gain. This follows the release of a trading update and the announcement of a $200 million share buyback. The worst performer has been the Abacus Property Group (ASX: ABP) share price with a 5% decline following the completion of its equity raising.

More reading

• Morgans picks the best ASX stocks to buy for 2021
• Why Afterpay, Creso Pharma, Healius, & Resonance Health shares are storming higher
• S&P Global set to launch world’s first cryptocurrency index
• IGO (ASX:IGO) enters lithium market, shares on trading halt
• Healius (ASX:HLS) share price jumps 6% on update and $200m share buyback plan

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

The post ASX 200 up 0.7%: CBA update, IGO enters lithium market, Healius jumps appeared first on The Motley Fool Australia.

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ASX stocks are likely to finish 2020 with a bang but this isn’t the time to get complacent as ASX outperformers in 2021 may not be the ones you’re expecting.

The broker’s analysts have done a sector “reset” as they try to pick the best ASX stocks and strategies for the new year.

The supercharged November market rally has positioned the S&P/ASX 200 Index (Index:^AXJO) to finish the year at breakeven.

That’s a good outcome given the nail-biting COVID‐19 market crash.

Bumpy road to recovery

While we have good reason to feel optimistic about 2021, just remember that economists, including the Reserve Bank of Australia (RBA), aren’t expecting the economy to return to pre-COVID levels till some time in 2022.

For this reason, Morgans is warning investors to expect a bumpy ride ahead, which makes indiscriminate buying a dangerous proposition.

Some of the sectors that the broker believes have the best upside in 2021 and its reasons are listed below.

ASX telco stocks

Sentiment has turned the corner now that the NBN is practically complete, helping to settle down customer migration. Telcos also see an improving outlook in mobile as competitive activity becomes more rational.

Stocks the broker favours are the TPG Telecom Ltd (ASX: TPG) share price and Nextdc Ltd (ASX: NXT) share price.

ASX banks

The banks recent financial performance has largely vindicated our view that the bad debt damage being factored into share prices was generally overdone.

Strong capital positions and generally improving asset quality outlook is now supportive of the dividend outlook, helping to fuel the strong rotation back into the segment now underway.

The key pick in this space is the Westpac Banking Corp (ASX: WBC) share price.

ASX Agriculture stocks

Following years of drought, improved seasonal conditions have provided much needed tailwinds for the sector and presented the opportunity for positive earnings operating leverage to return.

Some stocks that Morgans likes include the Graincorp Ltd (ASX: GNC) share price, Bega Cheese Ltd (ASX: BGA) share price and Nufarm Ltd (ASX: NUF) share price.

ASX Energy stocks

Our conviction in a sustainable oil market recovery is growing helped by vaccine progress (global growth, demand recovery), declining inventories, US shale issues and a weakening US dollar. This paints a bullish 1-2 year outlook.

Examples of key picks in this space are the Santos Ltd (ASX: STO) share price and Beach Energy Ltd (ASX: BPT) share price.

ASX mining stocks

Strong iron ore prices support compelling yields in BHP and RIO. Gold stocks now look more interesting on weakness given our view that risk appetite is likely to be highly variable through a bumpier than expected COVID recovery.

Besides the BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price, Morgan’s also likes the Ramelius Resources Limited (ASX: RMS) share price, the Coronado Global Resources Inc (ASX: CRN) share price and Regis Resources Limited (ASX: RRL) share price.

More reading

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Motley Fool contributor Brendon Lau owns shares of Beach Energy Limited, Nufarm Limited, and Westpac Banking. 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 4DS Memory Ltd (ASX: 4DS) share price shot up in early trade today, reaching 13.5 cents a share before retreating slightly to its current price of $12.75, up 5.8%.

Today’s gains mean that the 4DS share price is up more than 166% year to date, and up 150% since the start of September.

4DS Memory is a company that works in the provision of computer memory devices, namely RAM (random access memory) and similar products. Based in Silicon Valley (in California, USA), it describes itself as a “semiconductor development company of non-volatile memory technology… for next generation gigabyte storage in mobile and cloud”. 

It holds a number of patents in the United States for RAM technology, with additional patents in the pipeline (more on that later). As such, 4DS reckons that it “is well-positioned to address the massive memory demands of tomorrow”.

So what’s behind this sudden rush for 4DS shares?

4DS share price benefits from US patent approval

The 4DS Memory share price appears to be benefitting today from an announcement the company made to the markets this morning just after open. In this announcement, 4DS advised that it has been granted approval by the United States for yet another patent. That brings the company’s total to 29.

This particular patent (Patent No. 10,862,028) is titled Resistive Memory Device Having A Template Layer. The company notes this patent “broadens the claims of previous patent grants”.

4DS CEO and managing director, Dr Guido Arnout, had this to say on the development:

4DS is extremely pleased to receive another USA patent grant which broadens its claims in Interface Switching ReRAM.

The company is working with patent attorneys and the US Patent and Trademark Office to have three more strategically important patents granted as soon as possible and will continue to file additional patents around new internal innovations.

4DS also noted in this release that, “the company has filed an additional three USA patent applications to protect its stream of internal innovations and to strengthen its intellectual property portfolio in the area of Interface Switching ReRAM for Storage Class Memory near to DRAM”.

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Motley Fool contributor Sebastian Bowen 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 Here’s why the 4DS (ASX:4DS) share price is surging today appeared first on The Motley Fool Australia.

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