I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

Adore Beauty Group Ltd (ASX: ABY)

According to a notice of initial substantial holder, Challenger Ltd (ASX: CGF) has been buying this online beauty products retailer’s shares over the last few weeks. The notice reveals that the annuities company has picked up 4,929,496 shares between 23 October and 24 November.

Its last purchase came on Tuesday when it bought 617,768 shares for a total consideration of $4,132,868. This represents an average of $6.69 per share, which is just a touch lower than its IPO price of $6.75. Challenger’s purchases mean that it now owns a 5.24% stake in the company. The Adore Beauty share price is trading at $6.40 this afternoon.

Galaxy Resources Limited (ASX: GXY)

According to a notice of change of interests of substantial holder, Ausbil Investment Management has been topping up its holding in this lithium miner. Ausbil, which is one of the world’s leading boutique fund managers, has added over 5.3 million shares to its holding since its last update in April. Its most recent purchase was 134,699 shares for $176,176.61 on 29 October. This equates to an average of $1.31 per share. This purchase lifted the fund manager’s holding to a total of 37,917,460 shares, which represents a 9.26% stake in Galaxy.

Those recent purchases have proven to be a masterstroke by Ausbil. This afternoon the Galaxy share price is up over 9% to $2.14. This is a whopping 63% higher than its purchase price of 29 October. The lithium miner’s shares have surged higher on optimism that the worst is over for the price of the battery making ingredient thanks to increasing electric vehicle demand.

More reading

• Why Air NZ, Bega Cheese, Fisher & Paykel Healthcare, & Galaxy are pushing higher
• Why the Galaxy Resources (ASX:GXY) share price is tumbling lower today
• Here’s why the Galaxy Resources (ASX:GXY) share price is in a trading halt
• ASX stock of the day: Challenger (ASX:CGF) shares up 6%
• Are ASX lithium shares making a comeback?

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australian dollar, our proud national currency, is having a great time lately. At the time of writing, ‘the Aussie’ is buying 73.62 US cents, after touching the 74 US cents mark briefly earlier this week. At these levels, the Aussie is getting awfully close to breaking a 2-year high of 74.1 US cents.

It’s been a remarkable turnaround for the national currency, which was trading as low as 70 US cents just at the start of this month. We are now almost 30% higher from the record lows the dollar touched during the coronavirus-induced market crash that we went through in March and April. Back then, our dollar dipped as low as 55 US cents, its lowest level against the greenback since 2002.

Our dollar is also now far higher against the US dollar than where it was back in January and February, before the pandemic took hold. So what does a higher dollar mean for ASX shares?

Buying shares with an Aussie dollar

There’s a reason why the dollar is one of the most oft-quoted financial statistics on a day-to-day basis. It affects almost everything in the economy, which means it affects the ASX-listed companies that operate within it.

So, the exchange rate of our dollar basically determines how cheap or expensive it is to import and export goods and services in and out of Australia.

According to reporting in the Australian Financial Review (AFR), if our currency is higher, it is relatively more expensive for Australian companies to send exports offshore, as international buyers have to pay us in Aussie dollars, which have become dearer. Conversely in this situation, it is cheaper for Australian individuals and businesses to buy goods or services denoted in other currencies. That’s why we often see things like iPhones, TVs and petrol fall in price when our dollar is high.

But this works the other way as well. When our dollar is relatively low (as it was back in March), it is cheaper for Australian companies to send their goods and services offshore, and more expensive for us to import things.

So, let’s talk about the companies that stand to benefit from a higher dollar.

ASX winners and losers

Companies that import goods are well-placed to benefit from the higher dollar. This includes shares like JB Hi-Fi Limited (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN) and Ampol Ltd (ASX: ALD). If TVs, petrol and computers become cheaper for these companies to buy wholesale due to a more valuable Aussie dollar, they can either pocket the extra profit, or pass it on to consumers in the form of lower prices, without taking a hit to the bottom line.

Conversely, for companies that sell Aussie goods and services to the world, things are getting more expensive. This affects resources stocks like BHP Group Ltd (ASX: BHP) and Woodside Petroleum Limited (ASX: WPL).

So a higher dollar is evidently something to consider for ASX shares going forward!

More reading

• This expert thinks the oil price could surge to US$196 a barrel in 2021
• These ASX dividend shares have been named as buys
• Why Harvey Norman, Northern Star, Stockland, & TechnologyOne shares are charging higher
• ASX 200 flat: Bega Cheese announces major acquisition, WiseTech reaffirms guidance
• Is the Harvey Norman (ASX:HVN) share price good value?

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Altium Limited (ASX: ALU)

According to a note out of Credit Suisse, its analysts have initiated coverage on this electronic design software company’s shares with an outperform rating and $42.00 price target. Its analysts are a fan of the company’s shift to the cloud through its Altium 365 platform. Altium has stated that it expects this strategy to support transformation through dominance and Credit Suisse appears to agree. It sees a lot of cloud-based transformation potential over the long term. The Altium share price is trading at $35.24 this afternoon.

Nick Scali Limited (ASX: NCK)

Analysts at Canaccord Genuity have initiated coverage on this furniture retailer’s shares with a buy rating and $10.75 price target. Its analysts believe Nick Scali’s shares are great value at the current level and offer material upside over the next 12 months. Last month the company reported a 45% increase in total sales orders for the first three months of FY 2021. It also revealed that this positive trend has continued through October. The Nick Scali share price is fetching $8.42 on Friday.

Origin Energy Ltd (ASX: ORG)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $7.85 price target on this energy company’s shares. The broker was pleased with management’s commentary at its investor day and sees a clear path to capital returns now its balance sheet has been restored. It believes rising returns to shareholders will be the last step to drive a rebound in its share price. The Origin Energy share price is trading at $5.19 at the time of writing.

More reading

• Origin Energy (ASX:ORG) share price on watch after investor update
• Why Origin, Qantas, Webjet, & Westpac shares are storming higher
• Could these ASX renewable energy shares benefit from the Biden win?
• 2 fantastic ASX growth shares to buy
• ASX energy shares surge ahead as oil rises to 9-month high

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 Altium. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Tali Digital Ltd (ASX: TD1) share price is up by 40% at the time of writing, despite no market sensitive announcements. The Tali share price has been trading sideways since April, but today represents the highest traded volumes since then.

The company was the subject of an ASX price query earlier today over its substantial share price gains and trade volumes, and confirmed it was not aware of any unreleased information that could be driving the movement. However, Tali pointed to its recent annual general meeting (AGM) held on Tuesday 24 November 2020 and the release of its AGM presentation as generating significant interest.

In October, the company also provided the market with an update about its roadmap to commercialisation and key target markets. 

About Tali Digital 

Tali is a tech company that focuses on the development of software solutions to address neurological conditions in early childhood through its TALi program. The TALi platform is a scientific and clinically validated program that addresses early childhood issue-inattention, a key feature in conditions including ADHD and ASD. 

TALi TRAIN is a ground-breaking game-based training program that has been proven, through scientifically validated clinical trials, to improve attention by strengthening underlying attentional processes. Critically, improvements were retained after treatment had stopped, suggesting that benefits are long term. 

The program incorporates four engaging and adaptive touchscreen exercises that train children’s core attentional skills: selective attention, sustained attention and attentional control. Using a special algorithm, each exercise adapts in difficulty in real time to the gameplay of the child. 

The product is the first of its kind to apply gaming technology to an intervention for young children with attention deficits. 

First quarter update 

The company’s most recent market sensitive announcement was its Q1 update on 29 October. Within the update, Tali Digital’s managing director Mr Glenn Smith said:

We have made significant progress during the quarter as we work towards commercialising our technology platform in local and international markets. However, the impact of COVID-19 on social interaction and the broader economic situation impacted the ability for the company to significantly roll out the TALi products during the quarter. To this end completing the Schools Early Release Programme was an important milestone, considering the circumstances, that provided critical insights into the use and benefits of our platform.

The company confirmed its products have been clinically validated and are regulatory cleared medical devices in the US and the European Union. Its partner and customer pipelines remain strong, and Tali anticipates the ability to drive commercialisation through the remainder of FY21. 

In July, the company announced the successful completion of its Schools Early Release Program in partnership with 30 schools located in Australia. The program was completed amidst COVID and demonstrates its ability to be deployed in any type of school and in remote learning conditions.  

The company is also eyeing the Indian market with the launch of its products in the iOS and Android apps at the end of the quarter. India has the second-largest mobile subscription base, with ~1.2 billion subscribers and second-largest internet subscription base with 560 million subscribers. 

At the time of writing, the Tali share price is up by 40% to 4.2 cents per share.

More reading

• Forget retiring early with Bitcoin! I’d invest money in bargain shares today to get rich
• The Native Mineral (ASX:NMR) share price leaps 17% higher. Here’s why…
• Air New Zealand (ASX:AIZ) share price moves higher on market update
• Here we go again: Bitcoin, Ethereum, and Ripple are skyrocketing
• Why the Lynas (ASX:LYC) share price just hit a 52-week high

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The threat of a second stock market crash may mean that some investors are avoiding the purchase of bargain shares. Risks such as political uncertainty across many of the world’s regions and the ongoing coronavirus pandemic may dissuade them from investing money in the stock market.

However, low valuations may present buying opportunities for long-term investors. Therefore, focusing your capital on equities rather than popular assets such as Bitcoin may have a more positive impact on your financial position over the long run.

Buying bargain shares

Investing money in bargain shares may never feel like the right move for any investor to make. After all, when a company’s share price trades below its intrinsic value there is often an elevated level of risk that reduces demand among investors. Heightened risks can mean that the short-term prospects for cheap stocks are relatively unfavourable. This can translate into paper losses for investors over the short run.

However, a strategy of buying undervalued stocks has previously proved to be a sound means of obtaining high returns over the long run. It allows any investor to take advantage of market mispricings, where high-quality companies sell at low prices on a temporary basis due to weak investor sentiment. Over time, their prospects are likely to improve. This can be rewarded with higher share prices as investor sentiment strengthens.

Investing money in high-quality stocks at low prices

Today could be the right time to start buying bargain shares. A number of companies with solid balance sheets that are likely to allow them to survive a weak economic outlook currently trade at low prices. Similarly, businesses with strategies that will allow them to adapt to changing consumer trends also seem to be undervalued by investors. This may be because they face a period of uncertain operating conditions, or it may be down to weak investor sentiment towards the wider stock market.

Either way, the long-term prospects for the world economy may be brighter than many investors are currently anticipating. Policymakers have stated that they are willing to undertake further monetary policy stimulus in many of the world’s major economies. Alongside fiscal stimulus packages, this may mean that a relatively fast-paced economic recovery takes place that improves the operating outlooks for many businesses.

Avoiding popular assets such as Bitcoin

Therefore, now could be the right time to avoid popular assets such as Bitcoin in favour of bargain shares. The virtual currency’s recent price rise may mean that it lacks scope for capital growth relative to undervalued shares.

Furthermore, its regulatory risks and lack of infrastructure may hold back its progress and make it less appealing in the eyes of some investors. This may be detrimental to its return outlook, and could mean that a portfolio of undervalued shares outperforms it in the coming years.

More reading

• Why the Tali Digital (ASX: TD1) share price has rocketed 40% today
• The Native Mineral (ASX:NMR) share price leaps 17% higher. Here’s why…
• Air New Zealand (ASX:AIZ) share price moves higher on market update
• Here we go again: Bitcoin, Ethereum, and Ripple are skyrocketing
• Why the Lynas (ASX:LYC) share price just hit a 52-week high

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Copper and gold exploration company Native Mineral Resources Holdings Ltd‘s (ASX: NMR) share price is shooting higher today, up 17% in late afternoon trading.

Shares of the microcap stock only began trading on the ASX last week, on 16 November. Since then the share price is up 25%, giving the company a market cap of $21 million.

For comparison, the All Ordinaries Index (ASX: XAO) is up 1.7% since 16 November.

We take a look at why Native Mineral’s is soaring below. But first…

What does Native Mineral Resources do?

Native Mineral Resources is a 100% Australian owned copper and gold exploration company. It has extensive minerals exploration tenements in Queensland  and Western Australia.

The company raised $5.7 million via its initial public offering (IPO), issuing 28.7 million shares for 20 cents per share. Native Mineral Resources holds a large portfolio of advanced exploration tenements in Queensland (Palmerville Project and Mount Morgan Project) and Western Australia (Eastern Goldfields Project). It’s currently conducting drilling tests at its Leane’s Copper Prospect in Queensland.

Why is the Native Mineral share price leaping higher today?

In an announcement to the ASX this morning, Native Mineral Resources revealed it has received “excellent initial results” from its test drilling program at its Leane’s Copper Prospect in Queensland.

Drilling started in mid-November, with 6 of the 15 planned drill holes now complete. The company expects to finish drilling by mid-December.

Five of the drillholes testing for shallow skarn-mineralisation intersected near-surface iron-rich breccia with elevated copper.

Native Mineral Resources also reported that its plans to start exploration in other areas of its Palmerville Project and Eastern Goldfield Project in early 2021 were well-advanced.

Commenting on the drill results, Native Mineral Resources managing director Blake Cannavo said:

Following these encouraging early results from shallow drilling, our field crew is now ready to commence a diamond drillhole to test mineralisation at depth as the current drillhole has intersected porphyry veins suggesting the presence of a larger intrusive system below the skarn-breccia zone.

The first tranche of samples has been dispatched for analysis and we look forward to receiving the results in December. In Parallel, we are also planning our 2021 exploration programs for both the Palmerville and Eastern Goldfields Projects, and look forward to testing several other priority targets over the coming months.

More reading

• The Ioneer (ASX:INR) share price has rocketed up 11% today and 61% in November
• Strike Energy (ASX:STX) share price rises on business update
• Here’s why the Clean TeQ (ASX:CLQ) share price tumbled 10% today
• APA Group (ASX:APA) share price flat despite major project news
• Why the Tower (ASX:TWR) share price is up 4% today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Air New Zealand Limited (ASX: AIZ) share price is bucking the trend today, rising against the overall ASX market sentiment. This comes after the company released its monthly traffic update for October and announced an extended contract award for cargo flights.

At the time of writing, the Air New Zealand share price is up 2.3% to $1.76. The S&P/ASX 200 Index (ASX: XJO) is 0.6% down to 6,809 points.

What’s moving the Air New Zealand share price?

The Air New Zealand share price is pushing higher today following an update that highlights recovering passenger traffic in its domestic market.

According to the update, the company advised that passenger numbers are down 50.6% to 690,000 from the prior corresponding period. While total passenger traffic is still sitting at around half, the latest results indicate an improvement in the travel market.

In addition, revenue passenger kilometres (a transportation industry metric that shows the number of kilometres travelled by paying passengers) sank to $442 million, reflecting an 85.5% drop. Again, this is a slight recuperation from last month’s revenue levels against its comparable period, which saw an 87.3% fall.

While Tasman and long-haul flights still remain off for some time, the company’s short-haul business is coming back online. Passenger numbers in this sector have been increasing in the past few months, and are down just 44.2% from October last year. In contrast, long-haul flights are down 96% over the same period.

Cargo flight contract award

Further to the traffic report, Air New Zealand announced it has been awarded four months of additional international cargo flights. The second phase under the New Zealand Government’s International Air Freight Capacity (IAFC) scheme will see the contract run until 31 March 2021.

Under the agreement, the government provides financial assistance in supporting the cost of flying to ensure freight aviation remains free-flowing. In light of the new award, Air New Zealand is now operating an average 55 flights per week. It is expected that the company will receive somewhere between NZ$100 million and NZ$145 million towards cargo revenue.

As COVID-19 has thrown curveballs at the airline industry, the IAFC has indicated it will continue to provide support until international borders reopen. With this in mind, Air New Zealand anticipates its cargo revenue segment for FY21 to exceed FY20 levels.

Interestingly, the company said that its cargo revenue has grown from 10% to almost half of the group’s entire monthly revenue. Despite the growth, Air New Zealand is still forecasting a loss in FY21.

Air New Zealand share price summary

Shareholders for Air New Zealand will be hoping for a full recovery in 2021, as the company was hit hard during COVID-19. The Air New Zealand share price fell to as low as 80 cents in March and has been slowly climbing its way back since then.

Today’s share price represents its highest mark since the dramatic fall 8 months ago, but is still well off its $3 highs reached in 2019. The Air New Zealand share price is currently trading at $1.76, valuing the company at close to $2 billion.

More reading

• Why Air NZ, Bega Cheese, Fisher & Paykel Healthcare, & Galaxy are pushing higher

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

It’s been a wild year for Wall Street and the investment community. The unprecedented coronavirus (COVID-19) pandemic wiped away over a third of the S&P 500 Index (INDEXSP: .INX) value in about a month earlier this year, with the benchmark index logging its 10 largest single-day point losses and 8 biggest single-session point gains in history in 2020. 

These wild vacillations in equities have been akin to financial whiplash for investors.

The ‘Big Three’ of cryptocurrency are unstoppable, once again

But not all assets received the memo that it was time to panic. Digital cryptocurrencies have been on fire since March, with the three largest digital tokens by market cap – bitcoin, Ethereum, and Ripple – leading the way. Since the stock market bottomed out on March 23, 2020, bitcoin, Ethereum, and Ripple have respectively gained 187%, 356%, and 289%, through the early evening of Nov. 23.

Why the resurging interest in cryptocurrencies after 2017’s price run and burst bubble? The best guess I can offer is the continued push toward cashless and digital payments. The COVID-19 pandemic has made consumers question their payment choices, with cash viewed as a potential harbinger of germs. As millennials and Generation Z have aged, they’ve grown into a larger percentage of the consumer pool. They’ve been far more willing than Gen Xers or boomers to embrace digital payment options.

Investors are also likely excited about the real-world applications for certain cryptocurrencies and their underlying blockchain technology. Blockchain is the digital and decentralised ledger responsible for recording all transactions without the assistance of a third-party provider. The expectation is that blockchain can improve security via its decentralisation, as well as expedite the settlement of transactions – especially international payments.

Individual stories are at play, too. Bitcoin has become the go-to intermediary on crypto trading platforms for virtually all activity. If investors want to buy tokens of anything other than a major cryptocurrency, they’re going to first have to purchase bitcoin for exchange purposes.

Bitcoin’s trading popularity has been especially evident with digital payment platforms PayPal and Square. In October, PayPal announced that it would be launching a new service that’ll allow its customers to buy, sell, and hold cryptocurrency directly in their PayPal account.  Meanwhile, Square has seen its revenue skyrocket due to bitcoin exchange on peer-to-peer payment platform Cash App. Square also acquired about $50 million worth of bitcoin tokens.  Cryptocurrency stocks have been skyrocketing right along with digital tokens.

Another example is Ethereum’s smart contracts, which are built into its blockchain. These smart contracts help verify transactions and enforce contract negotiations. As an example, products for a business could be automatically reordered once total sales reach a certain level, if multiple parties agree. These smart contracts could completely revamp supply chain management.

This hasn’t ended well before, and this time won’t be any different

For millennial and novice investors, cryptocurrencies like bitcoin, Ethereum, and Ripple are like a dream come true. They vacillate wildly on a regular basis and can yield triple-digit gains in a matter of weeks if investor sentiment behind a token is strong enough.

But we’ve seen digital tokens go vertical a few times before, and it hasn’t ended well for crypto investors. The way I see it, crypto investors are fighting an uphill battle against three very real problems.

First, at least with regard to bitcoin, there’s a perceived scarcity problem. Bitcoin is often viewed as a direct threat to gold as a store of value and potential stock market hedge given its “cap” of 21 million mined tokens (there are currently 18.55 million tokens in circulation). The issue is that these circulating supply caps aren’t tangible like gold. This is to say that we can only mine the amount of gold found on planet Earth. By comparison, programming is all that keeps bitcoin’s virtual cap in place.

A second but far more concerning issue for bitcoin, Ethereum, and Ripple is utility. In 2017, global gross domestic product totaled $81 trillion. Yet as of Monday, Nov. 23, all circulating bitcoin had a market value of roughly $340 billion. Of this $340 billion, approximately 40% is being held by investors and is not in circulation for payments. This essentially means that only around $200 billion worth of bitcoin is available for transactional purposes. Aside from the fact that only between 1% and 3% of businesses accept crypto as a form of payment (according to Matthew May, the co-founder of financial firm Acuity), roughly $200 billion in circulating supply has little chance of becoming mainstream. 

There’s also zero guarantee that crypto tokens will be necessary. Brand-name financial service and technology companies are developing blockchain technology of their own that may be able to operate with fiat currencies, thus rendering arbitrary digital tokens obsolete.

The third big concern here is security. Although blockchain is designed to be more protective of users’ digital assets, a number of large-scale token thefts have occurred over the past decade. The issue isn’t so much that thieves are out to get your crypto tokens so much as that the Securities and Exchange Commission (SEC) can’t do much to stop it or help those affected. With most crypto trading and payments occurring outside the US, the SEC has no way to pursue action against these cybercriminals.

I believe that what we’re seeing in the crypto market is nothing more than sentiment-driven trading without any substance behind it. More than a century of investing history has shown that investor sentiment is impossible to predict, and it can shift at the drop of a dime. Ether and Ripple have previously undergone extended declines of more than 90%, and bitcoin retraced well over 80% on a handful of occasions. It’s happened before, and it’s quite possible it could happen again.

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

More reading

• Why the Lynas (ASX:LYC) share price just hit a 52-week high
• Treasury Wine (ASX:TWE) share price crashes 11% lower on China tariff news
• Can these fund managers drive the Coca-Cola Amatil (ASX:CCL) share price 10% higher?
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• Why is the Douugh (ASX:DOU) share price in trading halt today?

Sean Williams owns shares of Square and has no position in any cryptocurrencies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings and Square and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Lynas Corporation Ltd (ASX: LYC) share price reached a new yearly high of $3.85 yesterday as the company announced positive drill results. In today’s trade, the Lynas share price has given up a little of its gains, falling 0.95% lower to $3.66.

Shares in the rare earth miner have now returned 60% since the start of the year, easily outpacing the All Ordinaries Index (ASX: XAO) which is down 0.03% over the same period.

What Lynas does

Lynas is an Australian company involved in the exploration and mining of rare earth metals. The company has a long history and first listed on the ASX in 1986.

It is currently the world’s second largest producer of rare earths and only significant producer outside China. Rare earth metals have many manufacturing uses, including in electric cars and phones.

Lynas currently boasts a market capitalisation of $3.32 billion.

What did Lynas announce?

Yesterday, Lynas announced that its exploration team had identified a potential rare earth element below its Mt Weld mine. The news comes as the company was drilling deeper in the fresh carbonatite below areas of mineral resources and ore reserves.

Lynas CEO and director Amanda Lacaze explained the significance of the find, saying:

A cornerstone of Lynas’ 2025 growth strategy is ongoing access to high-quality Rare Earth feedstock. Our Mt Weld mine in Western Australia is recognised as one of the world’s highest grade operating Rare Earth mines and has 25 plus year mine life. We are encouraged by these new Exploration Results which go beyond the area of the 2018 Mineral Resources and Ore Reserves Statement. We are committed to exploring below the current mineral resource to understand the potential for primary REE (Rare earth element) mineralisation below the weathered zone.”

The Lynas share price is trading slightly lower today, falling by 0.95%. However, shares in the company reached a 52-week high yesterday and are up 30% in the last month.

More reading

• ASX 200 events this week that could move the market
• Which 5 ASX shares hit 52-week highs on Friday?
• Top ASX shares to buy in November 2020

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Treasury Wine Estates Ltd (ASX: TWE) share price crashed lower on Friday before being hurriedly placed into a trading halt.

The wine company’s shares were down 11% to $9.23 before being halted from trade.

This latest decline means the Treasury Wine share price is now down 43% since the start of the year.

Why is the Treasury Wine share price crashing lower today?

Investors were hitting the sell button in a panic today after the Chinese Ministry of Commerce made a major announcement.

According to the ABC, the Ministry has decided to place tariffs on all Australian wine imports from tomorrow.

This decision was made in response to the preliminary findings of an anti-dumping investigation into Australia’s wine exports. That investigation found that dumping was going on and had caused substantial harm to Chinese winemakers.

Fellow wine company Australian Vintage Limited (ASX: AVG) has also come under pressure following the news. It is down 4% to 60 cents at the time of writing.

What will the damage be?

It is worth noting that the investigation is still ongoing and is not expected to complete until next year. In light of this, there is still a small chance the decision could be reversed upon completion.

However, until then, Treasury Wine and other Australian winemakers will have to face some significant temporary anti-dumping security deposits.

These deposits, which are essentially the same as tariffs, will range from between 107% to more than 200% according to the report.

This could put a real dent into Treasury Wine’s exports into China. In FY 2020 the company generated $243.7 million of earnings from the Asia market, with the majority of this coming from China. This represents almost half of its full year earnings of $533.5 million.

What now?

Treasury Wine has requested a trading halt until the earlier of the release of a response to this announcement or 1 December.

It commented: “Treasury Wine Estates Limited requests a trading halt of its securities pending the preparation and release of an announcement by TWE regarding the decision announced today by the Chinese Ministry of Commerce to apply provisional anti-dumping measures to Australian wine imports into China. TWE is reviewing the details of the provisional measures as a matter of urgency in order to update the market.”

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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 Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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