Worley Ltd (ASX: WOR) shares are climbing higher today following the announcement of two contract awards for the company. During the opening minutes of trade, the Worley share price catapulted to an intraday high of $11.90. However, some quick profit taking has led Worley shares to retreat back to $11.77 at the time of writing, up 3.79%.

For this month alone, the global engineering company has won a total of five lucrative deals within the energy, chemicals and resources sectors.

Extended strategic partnership

The Worley share price is on the move today after the company released two positive updates to the market.

The first of these announcements related to a signed strategic partnership between Worley and Avantium Renewable Polymers. Under the agreement, Worley will assist in the development of a renewable plastic feedstock plant located in Delfzijl, the Netherlands. This follows the company’s completed work conducted over the last two years in the concept development phase and front-end engineering design of the facility.

The first-of-its-kind renewable plastic feedstock plant will produce plant-based furandicarboxylic acid (FDCA). This is a key component in making chemicals and plastics such as polyethylene furanoate (PEF). The latter is used for a variety of applications that include safe and recyclable packaging for food, drinks, shampoo, window cleaner, and even tennis balls.

Worley stated that it will be issued Avantium shares in return for a 10 million euro equity investment. This will allow both parties to share the risk associated with the engineering, procurement and construction phase of the facility.

The project will be implemented by Worley’s team in the Netherlands and Belgium.

Worley CEO Mr Chris Ashton welcomed the extended collaboration, saying:

We are excited to have entered into a strategic partnership with Avantium which is a leader in advancing the circular economy. This award reflects our strategic pivot to sustainability and delivering a more sustainable world. We look forward to growing our relationship with Avantium and transforming the global use of plastics.

Offshore oil contact award

In the second release driving the Worley share price higher today, the company revealed it won a contract from CNOOC Petroleum Europe Limited. The 2-year deal will see Worley provide engineering, procurement and construction services to three platforms within the North Sea. They include the Buzzard, Golden Eagle, and Scott offshore oil platforms.

The contract, which includes feasibility to the commissioning, will be undertaken by Worley’s United Kingdom office in Aberdeen. Additionally, the company’s global integrated delivery team will provide support where needed.

Mr Ashton, touched on the partnership, adding:

We are pleased that CNOOC Europe has selected Worley to continue supporting its North Sea assets. With our strategic focus on sustainability and delivering a more sustainable world, we’re delighted this work includes evaluation of alternative energy sources, building further on Worley’s relationship with CNOOC and our off-shore capabilities in the North Sea.

Worley share price performance

The Worley share price has accelerated since its multi-year low of $4.63 reached in March last year. Since then, Worley shares have jumped by more than 150%, reflecting positive investor sentiment.

Based on the current Worley share price, the company commands a market capitalisation of roughly $6 billion.

More reading

• Worley (ASX:WOR) share price dips despite new deals
• Broker lists the best ASX stocks to own for an up to 30% gain in 2021
• Worley (ASX:WOR) share price dips lower despite positive news
• Why the Worley (ASX:WOR) share price is edging higher
• ASX 200 drops 1.1%

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

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The PointsBet Holdings Ltd (ASX: PBH) share price has been a positive performer on Friday.

In morning trade the sports betting company’s shares jumped as much as 6.5% to $16.49.

The PointsBet share price has since dropped back a touch and is now up 2% to $15.81.

Why is the PointsBet share price jumping higher?

Investors have been buying PointsBet shares on Friday following the release of a quarterly update which revealed further strong growth across major metrics.

For the three months ending 31 December, PointsBet recorded turnover of $1,198.2 million. This was up a massive 303% on the prior corresponding period.

Strong turnover growth was achieved across both its Australian and US operations. Australian turnover increased 193.9% to $543.3 million and US turnover jumped 482.4% to $654.9 million. This was driven partly by a 106.6% increase in active clients to 211,100. This comprises 143,000 in Australia and 68,100 in the US.

Also growing strongly was the company’s gross win, which increased 189.2% to $83.4 million. This growth was driven entirely by its Australian operations, with its US business actually going backwards despite its huge turnover growth.

Australian gross win was up 264.4% to $75.5 million, whereas US gross win fell 2.6% to $7.9 million. This means these businesses were operating with vastly different gross win margins of 13.9% and 1.2%, respectively.

Pleasingly, there has been a huge improvement so far in the third quarter. Between 1 January and 24 January, the US business enjoyed a gross win margin of 15% and the Australian business’ gross win margin came in at 12.1%.

Finally, PointsBet’s net win for the second quarter was $44.6 million, up 148.1% from the same period last year. And thanks to the aforementioned improvement in its gross win margins in the third quarter, the company’s net win was $22.9 million between 1 January and 24 January. This means it has achieved half of its second quarter net win in just three and a half weeks.

Balance sheet

At the end of the period, the company’s corporate cash balance stood at $359.1 million with no borrowings.

PointsBet does, however, have a commitment to invest US$393 million into marketing over a five-year period to support its partnership with NBCUniversal.

More reading

• ASX 200 rises 0.4%
• Why the PointsBet (ASX:PBH) share price jumped to a record high today
• Why these ASX shares just stormed to 52-week highs or better
• Why Megaport, Netwealth, PointsBet, & Zip shares are racing higher
• Here’s why the PointsBet (ASX:PBH) share price will be on watch today

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

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The Centuria Industrial REIT (ASX: CIP) share price is up 2.65% at $3.10 in midday trading, outpacing the 0.5% gain posted by the broader S&P/ASX 200 Index (ASX: XJO).

Today’s share price gains follow Centuria’s announcement of 2 new logistics acquisitions.

Centuria Industrial REIT is a real estate investment trust and Australia’s largest domestic pure play industrial REIT.

What assets has Centuria acquired?

Centuria reported today that it has acquired 2 modern industrial facilities in Derrimut, Victoria. At a price tag of $37.25 million, they deliver an average initial yield of 5.1%.

Together, the 2 assets have an area of 31,466sqm, increasing the REIT’s portfolio weighting to Victoria to 38% (previously 37%).

The assets have a 4.6-year weighted average lease expiry (WALE) and are fully occupied by Volkswagen Group and Tasman Logistics.

Centuria notes that Derrimut offers excellent connectivity to key transport routes, such as the Western Freeway and the Western Ring Road. The facilities are just 20km from Melbourne’s CBD.

Centuria will fund the acquisitions using existing debt facilities.

Commenting on the news, CIP fund manager Jesse Curtis said:

The two Derrimut acquisitions were off-market opportunities that expand the trust’s critical mass, now totalling five stabilised assets, within this well-established industrial market. The properties are underpinned by strong tenant covenants with well-known national and international customers contributing to CIP’s reliable income streams.

Both assets provide low site cover within an in-demand precinct providing the opportunity to deploy our active management approach to build on CIP’s already high quality portfolio. As Australia’s largest ASX listed pure-play industrial fund, these acquisitions continue to demonstrate CIP’s ability to identify relative value for high quality industrial assets in a highly competitive environment.

Centuria Industrial REIT will report its first half of the 2021 financial year results on 2 February.

More on Centuria share price and company snapshot

Centuria’s portfolio of industrial assets are located across Australia’s major cities. The REIT has a market cap of $1.7 billion. It pays an annual dividend yield of 5.9%.

The Centuria share price is up 0.3% in 2021. Shares have yet to fully recover from the 39% loss suffered during the wider COVID-19 led market rout last February and March. Over the past full year, shares are down 14%.

More reading

• Starpharma (ASX:SPL) share price dips on quarterly update
• GameStop (NYSE:GME) stock insanity: Here are 4 things you need to know
• The latest ASX stocks to be hit by broker downgrades
• I own these 3 potential short-squeeze stocks. Here’s what I’m doing
• Why Bubs, Kogan, Lake Resources, & Western Areas shares are sinking lower

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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The Starpharma Holdings Limited (ASX: SPL) share price has dipped slightly today after the company released its quarterly cashflow and activities report for the quarter ended 31 December 2020.

Starpharma is a global biopharmaceutical company that develops pharmaceutical and medical products based on proprietary polymers called dendrimers. Dendrimers are man-made nanoscale compounds that can be used both to enhance existing health products and as entirely new products. 

The company is presently developing Viraleze, an antiviral nasal spray for COVID-19 that is complementary to vaccines and other preventative measures.

Here are some highlights from the company’s quarterly update.

Starpharma developments during the December quarter

As Starpharma prepares for the pre-launch activities surrounding its new Viraleze product, initial batches are being manufactured to support a European launch.

The report advises that the company is also reaching out to pharmacy chains, B2B customers and online platforms in anticipation of the new product offer.

During the quarter, Starpharma also commenced a human study for Viraleze that is currently taking place in Perth, Western Australia. The results of this study are not necessary to achieve EU product registration. The study is expected to conclude in the first quarter of this year.

Starpharma continues to progress clinical trials for its DEP docetaxel and DEP cabazitaxel products. These treatments are being tested to shrink tumours in patients with pancreatic, oesophageal and gastric cancer.

The company also advised that encouraging trial work moved forward over the three-month timeframe for its DEP irinotecan product, which treats tumour types including breast, colorectal, ovarian, pancreatic, lung and oesophageal cancer. 

Financial highlights

Starpharma’s closing cash balance as at 31 December 2020 was $70.3 million. This included $47.0 million in net proceeds following the equity placement and share purchase that took place during the period.

Net operating cash outflows were $7oo,000 for the quarter. The company notes these outflows are predominately related to the Viraleze launch and the DEP product clinical programs. 

Starpharma share price snapshot

The Starpharma share price has currently slid down 0.33% today and is trading at $1.50. Starpharma shares are up 28% on this time last year, and the company has a current market capitalisation of $611 million. 

More reading

• Leading broker names the ASX healthcare shares to buy in 2021
• Are these 4 ASX medical shares set for a healthy 2021?

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 world of investing has been lit in conflagration over the last few days by a previously little-known company called GameStop Corp (NYSE: GME). If you want to know why, just look at a 6-month chart of the GameStop stock price.

Six months ago, GameStop stock was worth around US$4.

A month ago, it was a US$19 stock.

Last Friday, GameStop shares were trading at a healthy US$42.50.

And last night, GameStop stock hit an all-time high of US$483 a share. That’s a return of more than 1,000% in just a week, almost 2,400% in a month, and… wait for it… 11,800% over six months.

So now you know.

According to reporting in the Australian Financial Review (AFR) today, here are four things you need to know about what has happened with this company.

1. GameStop rally was sparked by a short squeeze

A short squeeze occurs when short sellers have to close their short positions because of a rising share price. Normally, this all happens at once in a chain reaction and leads to a massive imbalance between buyers and sellers. And when an imbalance like that occurs, it can result in a rapid and enormous share price surge. We saw similar events occur with Tesla Inc (NASDAQ: TSLA) stock last year. But what’s happened with GameStop is a record-breaking one for the books.

2. ‘Amateur’ investors caused this one

This move is being put at the feet of the new generation of investors known as ‘Robinhood traders’, named after the popular United States free brokering service Robinhood. The growing clout of these traders, who are famously driven by a ravenous desire for quick, ‘casino-like’ wins over a long-term investing mindset, is proving to be a force to behold. This type of buying and selling often involves the trading of options, rather than shares themselves. Options can be used as a high-risk, high-reward bet on the potential movements of a share price.

3. Collective action proves powerful for GameStop

As we previously flagged, this wasn’t a move orchestrated on Wall Street. GameStop was targeted by a group of ‘Robinhood traders’ from the Reddit group WallStreetBets. These investors have figured out that if they move as a group, they have the power to manipulate the price of a company. GameStop was targeted because these investors noticed that a large number of this company’s shares were held in short positions.

Someone surmised (accurately as it turns out) that if there was enough buying pressure, it would cause a short-squeeze. And that’s exactly what happened. Then, add an army of other traders trying to jump on the bandwagon, and you can start to see how this incredible share price surge unfolded.

4. When does this end?

Like all ‘bubble’ events in history, this one is set to reward a few lucky investors handsomely at the expense of the many. The AFR report notes that Robinhood and other traders have now placed trading restrictions on GameStop and other stocks that have been targeted in a similar manner. The report also posits that these actions hurt the entire share market by introducing massive pricing distortions that affect the broad flow of capital.

GameStop stock closed at US$193.60 this morning (our time), already down ~60% from the highs we saw earlier in the trading day. But then again, it was up another 61% to US$312 in after-hours trading. Who knows when the madness will end!

More reading

• The Reddit-GameStop-Robinhood saga is heating up
• 53% share price jump lands GME Resources (ASX: GME) in trading halt
• What Is a Gamma Squeeze?
• Short squeezes: Everything you need to know about the recent investing movement
• GameStop trading ought to be halted for 30 days, one regulator says

Sebastian Bowen owns shares of 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.

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Our market is rebounding today but not all ASX stocks are joining the party as some got slugged by a broker downgrade.

The S&P/ASX 200 Index (Index:^AXJO) jumped 0.7% in late morning trade with most sectors trading higher.

There are exceptions though with leading brokers cutting their recommendations on three ASX stocks today.

Metal fatigue bending SGM share price

One that’s left out in the cold is the Sims Ltd (ASX: SGM) share price. Shares in the scrap metal trader fell 1.4% to $12.53 at the time of writing.

The weakness in the SGM share price coincided with a downgrade by Goldman Sachs, which lowered its recommendation to “sell” from “neutral”.

The broker believes that recent supply constrains that drove a surge in steel spreads have peaked, and that prices are poised to turn lower.

ASX steel shares downgraded by broker

“In recent weeks we have seen some improvement in supply, and a broad based retreat in both steel pricing, input commodities and spreads,” said Goldman.

“We expect that as CY21 progresses, market dynamics and pricing (and spreads) will normalise back to prior trading bands.”   

The broker warns that the earnings before interest, tax, depreciation and amortisation (EBITDA) multiples for the sector will compress by around 15%.

As an aside, Goldman also downgraded its rating on BlueScope Steel Limited (ASX: BSL) share price to “neutral” from “buy” at the same time, but that was just before BlueScope issued a profit upgrade.

Goldman’s 12-month price target on the SGM share price is $11.38 a share.

Valuation concerns triggers downgrade

Another stock that’s lost favour with investors is the Orocobre Limited (ASX: ORE) share price. The lithium miner slumped 5.7% to $5.42 as more than one broker downgraded their rating on the ORE share price after it posted its quarterly update.

The issue isn’t so much its latest quarterly production report but its valuation. If anything, the production figures were the third-highest on record, aided by record brine concentration 8000-9000ppm, according to Credit Suisse.

But the broker thinks the recent share price rally is overdone and changed its recommendation to “underweight” from “neutral” with a 12-month price target of $5 a share.

Citigroup is another that downgraded the ORE share price. It cut its rating to “neutral” from “buy”. This was despite the fact that ORE’s quarterly figures came in ahead of the broker’s expectations.

But Citi also thinks the stock has run up too quickly. It’s price target on ORE is $6.75 a share.

QAN share price running low on fuel

Taking about reaching full valuation, the Qantas Airways Limited (ASX: QAN) may also struggle to ascend further.

Macquarie Group Ltd (ASX: MQG) lowered its recommendation on the Flying Kangaroo to “neutral” from “outperform”.

Unpredictable and sudden border closures due to COVID-19 is impacting on Qantas’ earnings recovery flight path.

The stock’s recent rally also means it’s only trading at a modest 10% discount to its long-run trading multiples, added the broker.

Macquarie’s 12-month price target on the QAN share price is $5.05 a share.

More reading

• ASX 200 up 0.6%: ResMed Q2 update, Kogan sinks, NAB acquires 86 400
• Why the Novonix (ASX:NVX) share price is down 10% today
• The BlueScope (ASX:BSL) share price surges on a profit upgrade today
• Here’s why the Origin Energy (ASX:ORG) share price is climbing today
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Brendon Lau owns shares of BlueScope Steel Limited and Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended 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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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.

Volatility is perfectly normal in the stock market. Long-term investors should acknowledge it, accept it, and (mostly) ignore it. However, the volatility we’ve seen over the last several days will likely be talked about by investors and analysts for years to come – the story behind the GameStop (NYSE: GME) short squeeze is truly historic. 

How should investors prepare for a short squeeze? This question is particularly relevant to me at the moment. That’s because I own three stocks that could be next on the short-squeeze list: insurance company Lemonade Inc (NYSE: LMND), plant-based meat company Beyond Meat Inc (NASDAQ: BYND), and home-cleaning robot manufacturer iRobot Corporation (NASDAQ: IRBT).

Here’s what’s going on in the market, why these three stocks could be next, and what I plan to do about it.

How did this even get started?

By now, I’ll assume you’ve heard about the epic short squeeze of GameStop stock. Shares of the video game company were the most shorted on the market, with over 100% of the available shares being sold short.

Then members of a Reddit stock investing discussion group put their heads together and realised they could squeeze out these shorts if they cooperated on their trading actions. And what they did is working. Things are changing fast, but as of this writing, GameStop’s stock price was up over 1,700% just this month.

It’s likely that millions of GameStop shares are still being sold short (just at a different level from the initial sellers). So the stock could keep rising while more and more shorts get squeezed out.

That said, the music will end someday. And when that happens, as in a game of musical chairs, chaos could ensue and someone will be left without a seat (and plenty of stock price losses). GameStop’s stock price will likely go back down, closer to where it was before.

It’s what happened after the famous short squeeze of Volkswagen in 2008. Shares of Volkswagen are still down over 80% from those all-time highs, more than a decade later.

Why my stocks are next

Call the GameStop short squeeze a proof of concept. The Redditors’ plan is working, which puts any stock with a lot of short-seller interest in their crosshairs if they intend to target new shorts. And three of my holdings make that list.

Company	Short Interest (Percent of Float)	Days to Cover
Lemonade	25.8%	1.9
Beyond Meat	24.4%	3.2
iRobot	65.1%	20.3

Data source: Yahoo! Finance, Nasdaq.

Indeed, these short squeezes may have already started – all three stocks are crushing the market in January, as the chart below shows. It’s possible they could shoot higher still. But after that, all three stocks could possibly tank back down to levels more in line with business fundamentals.

LMND data by YCharts

What investors should do

If my investing goal were to maximize my returns, I’d be scared stupid right now. But because I’m playing a different game, I can relax and do nothing.

Wait. Isn’t making as much money as possible the point of investing? While that might seem like the goal, here’s why that’s a misguided idea. To truly maximize returns, you’d have to perfectly time the top for all your stocks, including during short squeezes. But data has shown time and again that that’s impossible.

I’m playing a very different game. My goal is to see my investments return 15% annually over the long haul. Why 15%? Because I’ve done the math. Given my age, my current retirement savings, and the new money I add to my IRA regularly, 15% per year will be a good enough return to exceed my expected retirement needs.

I’d encourage you to do the math for yourself. You’d be surprised how quickly even a 10% return can compound your wealth. For that reason, I actually get excited after my stocks have a big run. I’ve initiated positions in all three of these companies over the last 13 months. The worst performer of this group is up 100% for me.

The way I see it, each could fall significantly in the aftermath of a short squeeze, and I’d still be ahead of my investing goals.

Here’s the thing: I love the long-term investing thesis for each of these three stocks – it’s why I own them.

I believe Lemonade can build a sizable and loyal customer base thanks to its unique revenue structure with clear incentives. Beyond Meat is a top-of-mind brand name at the forefront of a societal shift toward more plant-based products. And iRobot is a leader in the smart-home trend with a strong balance sheet and optionality for new product lines in the future.

There’s no way I want to sell them now, even if there’s a realistic chance for downside volatility from a short squeeze.

My reasoning for buying Lemonade, Beyond Meat, and iRobot still applies, making it a bad move to sell in my opinion. To prepare for possible volatility in your own portfolio, I recommend you do what I’ve done: Remember your goals and review the reason you bought each of your stocks. If everything is good, sit back and enjoy the ride.

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

More reading

• Why Bubs, Kogan, Lake Resources, & Western Areas shares are sinking lower
• ASX 200 up 0.6%: ResMed Q2 update, Kogan sinks, NAB acquires 86 400
• Why the Novonix (ASX:NVX) share price is down 10% today
• The Reddit-GameStop-Robinhood saga is heating up
• Why the Lynas (ASX:LYC) share price is on the rise

Jon Quast owns shares of Beyond Meat, Inc., iRobot, Lemonade, Inc., and Nasdaq. The Motley Fool Australia’s parent compnay The Motley Fool owns shares of and recommends Beyond Meat, Inc., iRobot, and Lemonade, Inc. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.

The post I own these 3 potential short-squeeze stocks. Here’s what I’m doing 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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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing, the benchmark index is up 0.7% to 6,697.5 points.

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

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 8% to 68.5 cents. This morning analysts at Citi responded to Bubs’ second quarter update by reiterating their sell rating and cutting their price target by 16% to 51 cents. Bubs fell short of its sales estimates and spent far more cash than it was forecasting. Citi appears concerned the third quarter could be another tough one for the company.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 5.5% to $18.57. Investors have been selling the ecommerce company’s shares following the release of its first half trading update. Kogan revealed a 96% increase in gross sales and a 140%+ jump in earnings before interest, tax, depreciation and amortisation (EBITDA). This represents a reasonably sharp slowdown in its growth since end of the first four months of FY 2021. At that point its sales were up 99.8% and its operating earnings were up 268.8% over the same period last year.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down 15% to 30.5 cents. This decline appears to have been driven by profit taking following some very strong gains this month. In fact, even after today’s decline, the lithium miner’s shares are up a whopping 280% since the start of 2021.

Western Areas Ltd (ASX: WSA)

The Western Areas share price has fallen 4.5% to $2.35. This decline also appears to have been driven by a broker note out of Citi this morning. Its analysts have downgraded the nickel producer’s shares to a neutral rating with a $2.60 price target. This follows a softer than expected quarterly update. According to the note, Western Area fell short of Citi’s expectations on both production and costs.

More reading

• ASX 200 up 0.6%: ResMed Q2 update, Kogan sinks, NAB acquires 86 400
• Here’s why the Kogan (ASX:KGN) share price is sinking 5% lower
• 3 reasons why the Bubs (ASX:BUB) share price could be a buy
• ASX 200 drops 2%, IOOF and Afterpay shares sink, Bubs jumps
• Here’s why the Western Areas (ASX: WSA) share price crashed 16% today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO and Kogan.com 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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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) has returned to form and is pushing higher. The benchmark index is up 0.6% to 6,689.7 points.

Here’s what is happening on the market today:

ResMed delivers more growth

The ResMed Inc (ASX: RMD) share price is pushing higher on Friday after delivering a stronger than expected second quarter update. According to the release, ResMed reported a 9% increase in quarterly revenue to US$800 million and a 17% increase in net profit to US$206.4 million. This was ahead of the market consensus estimate for both revenue and earnings. Management advised that its growth was driven by a solid performance across the business.

Kogan shares slide following update

The Kogan.com Ltd (ASX: KGN) share price is dropping lower today following the release of its half year trading update. For the six months ended 31 December, Kogan’s gross sales (including the Mighty Ape acquisition) increased 96% over the prior corresponding period. And thanks to margin expansion, its gross profit grew over 120% and its earnings before interest, tax, depreciation and amortisation (EBITDA) jumped over 140%. On the negative side, the company revealed charges totalling $3.4 million. It also advised that it recorded an unspecified but significant unrealised foreign exchange loss due to the rise in the Australian dollar.

NAB acquires 86 400

The National Australia Bank Ltd (ASX: NAB) share price is trading lower today despite announcing a scheme implementation agreement that will see it acquire 100% of neobank 86 400 for $220 million. As at 15 January 2021, 86 400 had more than 85,000 customers and $375 million of deposits. The Aussie neobank also has $270 million in approved residential mortgages and 2,500 accredited brokers.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Service Stream Limited (ASX: SSM) share price with an 8% gain. This follows the announcement of a multi-year agreement with telco giant Telstra Corporation Ltd (ASX: TLS). The worst performer has been the Kogan share price with a 6% decline following its update. After which, the Western Areas Ltd (ASX: WSA) share price is the next worst performer with a 4% decline. This morning analysts at Citi downgraded the nickel producer’s shares to a neutral rating with a $2.60 price target.

More reading

• Why the Novonix (ASX:NVX) share price is down 10% today
• Why Lynas, Mesoblast, ResMed, & Service Stream shares are pushing higher
• The BlueScope (ASX:BSL) share price surges on a profit upgrade today
• Here’s why the Kogan (ASX:KGN) share price is sinking 5% lower
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Telstra Limited. The Motley Fool Australia has recommended ResMed Inc. and Service Stream Limited. 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 0.6%: ResMed Q2 update, Kogan sinks, NAB acquires 86 400 appeared first on The Motley Fool Australia.

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The Novonix Ltd (ASX: NVX) share price has slumped 10% in early trade to follow up yesterday’s 6.9% slump.

Why is the Novonix share price under pressure?

Novonix is a battery materials and technology company focused on the electric vehicles and grid energy storage. Shares in the Aussie company hit a record high of $4.23 in early trade yesterday before slumping lower through to the afternoon.

That trend has continued this morning with the Novonix share price sliding more than 12% lower in morning trade. It’s currently trading at $2.79, down 10%. Today’s share price fall has occurred despite no new announcements by Novonix following its quarterly update on 21 January.

In that release, Novonix advised its wholly owned US-based subsidiary, PUREgraphite, has been selected to receive a ~US$5.6 million grant by the US Department of Energy (DOE) for new technology development.

The grant funding will support the development of high efficiency furnace technology for lithium-ion battery synthetic graphite material.

Novonix chief executive, Dr Chris Burns, was positive about the grant. Dr Burns said the new furnace technology will be “industry leading” and “state of the art” in energy efficiency, environmental impact and capital cost.

The Novonix share price initially jumped in early trade on Thursday before continuing to slide through to the market close. Today’s session has started as yesterday finished with Novonix’s market capitalisation falling below $1 billion.

What else is happening in the market?

Despite Novonix’s disappointing start to the day’s trade, the S&P/ASX 200 Index (ASX: XJO) has got off on the right foot.

The benchmark Aussie index has climbed higher this morning to pare back some of the losses from Thursday’s session. A slump in ASX tech shares saw the ASX 200 record its worst day of trade since September 2020.

Service Stream Limited (ASX: SSM) and Domain Holdings Australia Limited (ASX: DHG) shares are leading the way with both ASX 200 shares up more than 7% this morning.

More reading

• ASX 200 up 0.6%: ResMed Q2 update, Kogan sinks, NAB acquires 86 400
• Why Lynas, Mesoblast, ResMed, & Service Stream shares are pushing higher
• The BlueScope (ASX:BSL) share price surges on a profit upgrade today
• Here’s why the Origin Energy (ASX:ORG) share price is climbing today
• Why the Service Stream (ASX:SSM) share price is jumping 7% higher

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Service Stream 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 the Novonix (ASX:NVX) share price is down 10% today appeared first on The Motley Fool Australia.

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