Shares in Ioneer Ltd (ASX: INR) are in a trading halt today at the company’s request, with investors waiting on a fresh update from management.

Ioneer shares last traded at 21 cents at Wednesday’s close. Despite recent volatility, the stock is still up around 14% so far this year.

Trading is expected to resume once the announcement is released or by the start of trade on Monday, 2 February, at the latest.

Why Ioneer asked for a trading halt

According to the ASX notice, the trading halt relates to an upcoming announcement connected to a material capital raising.

While Ioneer has not provided further details at this stage, the wording indicates the company is preparing to outline funding plans that could be important for the next phase of its development.

Capital management has been a key focus for the company as it advances its flagship project and secures long-term funding support.

A quick refresher on Ioneer’s main asset

Ioneer is developing the Rhyolite Ridge Lithium Boron Project in Nevada, United States.

The deposit contains both lithium and boron. Lithium is used in electric vehicle batteries, while boron is used in advanced manufacturing, clean energy technologies, and specialist glass products.

It is one of only two known lithium boron deposits globally. That level of scarcity has helped put the project on the radar of governments and policymakers as they work to secure more reliable supply chains for critical minerals, particularly outside China.

The project already has key permits in place and has secured conditional support from the US Department of Energy. That loan is intended to help fund construction once final funding arrangements are confirmed.

Funding and partners remain the big focus

Last year, Ioneer restarted its search for a strategic partner after a previous deal fell over. Management said it expects that process to be completed in the first half of 2026.

Any capital raising announced this week could be linked to that broader funding plan. It could also be aimed at strengthening the balance sheet ahead of construction or partner negotiations.

Investors will be watching the size and pricing of any capital raise closely. Those details are likely to shape the market’s response once trading resumes.

What investors are watching next

With the share price halted, attention is now on what the announcement means for the company’s development timeline.

Investors will be looking for signs that Ioneer is moving closer to construction at Rhyolite Ridge, either through new funding, progress on a strategic partner, or both.

Foolish Takeaway

Ioneer has a rare critical minerals project, but funding remains the key piece still to fall into place.

With shares halted, investors are now waiting to see whether the upcoming announcement moves the Rhyolite Ridge project closer to construction.

The post Guess which ASX lithium stock plunged into a halt as the market awaits news appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a poor session on Thursday. In afternoon trade, the benchmark index is down 0.7% to 8,872.9 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Appen Ltd (ASX: APX)

The Appen share price is up 27% to $1.38. Investors have been buying the artificial intelligence data services company’s shares following the release of a strong quarterly update. Appen reported revenue of $73.4 million. This was a 10% lift on the prior corresponding period and a 33% increase on the third quarter of FY 2025. Appen’s CEO, Ryan Kolln, said: “Q4 was a strong finish to the year for both our China and Global businesses. Appen China exited the quarter with an annualised revenue run-rate growing to over $135 million – a pleasing result, providing strong momentum heading into FY26.”

Imricor Medical Systems Inc (ASX: IMR)

The Imricor Medical Systems share price is up 11% to $2.11. The catalyst for this has been news that the medical device company has received US FDA approval for its NorthStar Mapping System. NorthStar is the first and only MRI-native 3D mapping and guidance system to receive FDA clearance. Imricor’s chair and CEO, Steve Wedan, said: “At Imricor, we have been building a comprehensive suite of uniquely MRI-compatible devices for two decades. These devices, which include both consumable products and capital equipment, enable doctors to harness the superior soft tissue imaging of MRI to precisely guide minimally invasive procedures in a 100% radiation-free setting.”

Sunrise Energy Metals Ltd (ASX: SRL)

The Sunrise Energy Metals share price is up 2.5% to $10.36. This follows the release of the company’s quarterly update this morning. Management took this opportunity to remind investors about the progress it is making. It highlights that its Syerston scandium deposit is currently the world’s largest and highest-grade source of mineable scandium on a granted mining lease adjacent to excellent infrastructure.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 2.5% to $9.42. This morning, this coal miner released its quarterly update and revealed a 21% quarter on quarter increase in managed ROM production to 11Mt. Also increasing strongly were its equity sales, which rose 18% to 7Mt. Management also advised that it is on track to deliver $60 million to $80 million of annualised cost savings by 30 June 2026.

The post Why Appen, Imricor, Sunrise Metals, and Whitehaven Coal shares are charging higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen. 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 Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares are not an investment I would look at for excitement or rapid growth. 

Australia’s telecommunications leader is one I revisit when I’m thinking about income and resilience.

At the moment, there are a few reasons why Telstra stands out to me as a stock that could be worth considering.

Telstra shares offer a dependable income stream

The main reason Telstra shares appeal to me at current prices is income certainty. Telstra’s dividend is no longer based on hope or asset sales, but on recurring cash flows from its core mobile and infrastructure businesses.

According to CommSec, consensus estimates point to fully-franked dividends per share of 20 cents in FY26 and 21 cents in FY27. At today’s share price of $4.80, that translates to dividend yields of around 4.2% and 4.4%.

For a large, defensive ASX stock, those are solid yields, particularly when backed by improving cash flow discipline. The fact that the dividends are expected to be fully franked only strengthens the income appeal for Australian investors in the current environment.

Defensive qualities in an uncertain environment

Telstra’s services are not discretionary. Mobile connectivity, data usage, and network access are embedded in everyday life for households, businesses, and government.

That gives Telstra a defensive edge that becomes more valuable when economic conditions are uncertain. People might cut back on spending elsewhere, but they don’t cancel their phone plans or stop using data. I see that resilience as a quiet strength, especially for investors who want exposure to equities without taking on excessive volatility.

Operational focus is improving

What has changed my view on Telstra over time is not just the dividend, but the company’s renewed focus on execution.

Management is no longer chasing too many moving parts at once. The business is more streamlined, capital allocation is clearer, and there is a stronger emphasis on getting acceptable returns from existing assets rather than chasing transformational growth. That doesn’t make for exciting headlines, but it does improve the quality and reliability of earnings.

For me, Telstra today looks less like a turnaround story and more like a steady operator that knows what it is good at.

Foolish Takeaway

Telstra isn’t going to double overnight. It’s not that type of stock. At around $4.80, I think the shares offer a reasonable balance of value, income, defensiveness, and stability.

For investors who want a reliable component in their portfolio rather than something to trade around, Telstra shares could be worth a closer look at current levels.

The post 3 reasons Telstra shares could be worth buying today appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re searching for your next ASX dividend stock to buy this January, you might have some ideas about what you are seeking. You are probably looking for a reliable provider of passive income that offers a high dividend yield with full franking credits. Perhaps receiving income every month, rather than every quarter or every six months (as is the norm on the ASX), is also on the wish list.

Well, Plato Income Maximiser Ltd (ASX: PL8) is a stock that ticks all of those boxes. This listed investment company (LIC) is also inherently diversified, going above and beyond our initial checklist.

Let’s dive into why this ASX dividend stock might be the perfect buy for income investors for 2026.

Like most LICs, Plato owns and manages a portfolio of underlying investments on behalf of its shareholders. In this case, the portfolio consists of other ASX shares. These shares are mostly blue-chip stocks with strong track records of paying substantial, sustainable dividends.

As of the latest data, these stocks included ANZ Group Holdings Ltd (ASX: ANZ), Beach Energy Ltd (ASX: BPT), Fortescue Ltd (ASX: FMG), Suncorp Group Ltd (ASX: SUN), APA Group Ltd (ASX: APA) and Commonwealth Bank of Australia (ASX: CBA).

An ASX dividend stock paying a 4.5% monthly yield

Plato draws the dividend income it receives from this portfolio and channels it to its investors as monthly dividends, which also carry full franking credits.

Over the past 12 months, Plato has paid out 12 dividends. Each of those monthly dividends was worth 0.55 cents per share. Adding that up, we get an annual dividend of 6.6 cents per share. At the current Plato share price of $1.48 (at the time of writing), this ASX dividend stock has a trailing yield of 4.46%.

That’s all well and good. But, as the more jaded investors out there might tell you, a high dividend yield doesn’t mean an ASX dividend share will be a good investment. Fortunately, Plato has plenty of data to potentially convince investors otherwise in its case.

The company’s latest performance figures confirm that, since this ASX dividend stock’s inception in April 2017, its shares have returned (share price growth plus dividends and franking) an average of 10.3% per annum (as of 31 December). That’s slightly above what the broader S&P/ASX 200 Index (ASX: XJO) has delivered over the same period.

With a monthly dividend, a diversified portfolio of underlying investments, and a stellar track record of delivering returns for shareholders, I think Plato is the perfect ASX dividend stock for income investors to consider this January.

The post A perfect January ASX dividend stock with a 4.5% monthly payout appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pro Medicus Ltd (ASX: PME) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company closed trading yesterday for $185.77. During the Thursday lunch hour, shares are swapping hands for $183.26 apiece, down 1.4%.

For some context, the ASX 200 is down 0.7% at this same time.

As you may know, Pro Medicus shares have come under heavy selling pressure since notching an all-time closing high of $330.48 on 17 July.

That high water mark followed a tremendous run after the ASX 200 stock plumbed one-year closing lows on 7 April. Investors who timed it right and bought the stock at the 7 April lows would have been sitting on gains of 86.8% by 17 July.

Which would have been an opportune time to sell.

Indeed, the ASX healthcare stock has now plunged 44.5% since its record close in July.

Which brings us back to our headline question.

Should you buy Pro Medicus shares today?

Medallion Financial Group’s Stuart Bromley recently ran his slide rule over the embattled stock (courtesy of The Bull).

“The company provides medical imaging software and services to hospitals and healthcare groups across the world,” Bromley said.

He noted:

The company retains best-in-class imaging software that should generate high margins and structural growth from a steady flow of new contract wins amid bigger and longer contract renewals with existing customers.

But Bromley isn’t quite ready to pull the trigger yet, with a current hold recommendation on Pro Medicus shares.

“The significant share price retreat leaves PME as a hold but also presents an opportunity to enter a top-class business at an attractive price,” he concluded.

Is the ASX 200 healthcare stock turning a profit?

While not a hard and fast rule, I do like to see companies I’m considering investing in turn a profit.

And on that front, Pro Medicus shares fit the bill.

In FY 2025, the company reported a 31.9% year-on-year increase in revenue from ordinary activities to $213.0 million. That came amid a record-setting year for new contract wins and contract renewals.

And on the bottom line, the company achieved an underlying profit before tax of $163.3 million, up 40.2% from FY 2024.

Also pleasing, at the end of the 2025 financial year, Pro Medicus had no debt.

“All key financial metrics headed in the right direction,” Pro Medicus CEO Sam Hupert said of the results.

Hupert added:

Importantly we continued our trajectory of strong, profitable growth. The majority of the contracts that we signed were in the second half of the year and will come on stream this coming year and beyond, so there is a very sizeable revenue pathway in front of us.

The post Is now a good time to buy the big dip in Pro Medicus shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in drug developer Starpharma Ltd (ASX: SPL) have jumped more than 10% after the company’s Chief Executive Officer said that interest in the company’s technology was “particularly strong”.

In its quarterly report released on Thursday, the company said it had increased its cash position by just under $4 million to $18.2 million, including an early-stage milestone payment from collaborator Genentech.

Pipeline building up

Starpharma’s Chief Executive Officer, Cheryl Maley, said the company successfully executed two partnership agreements in the first quarter of the year, and also had a solid lead into this year from the second quarter.

She went on to say:

Off the back of an intense second quarter, we have kicked off 2026 with great momentum and are harnessing every opportunity to accelerate our programs – be it radiopharmaceuticals or our early-stage opportunities. While our expert scientists continue concentrating on our internal projects and partnerships, our proprietary DEP platform is attracting increased industry attention on the back of our recent partnership announcements.

Ms Maley said earlier this month the company was represented in San Francisco at the JP Morgan and Biotech Showcase conferences, where the interest from other companies was strong.

She added:

There, we engaged in several high-impact discussions with current partners, promising new collaborators, and potential investors. With our recent partner announcements, the level of interest in Starpharma’s technology was particularly strong and confirmed the market’s growing recognition of our platform’s potential. Access to Starpharma’s proprietary dendrimer technology through our Star Navigator program appears to be of high interest to potential new partners.

Ms Maley said the strategic priorities for 2026 were clear:

Advancing our innovative radiotheranostic program into the clinic, progressing high-value discovery programs towards development, and securing revenue growth through asset licensing, new collaborations and product sales’.

Retail sales strong

The company also said it had increased marketing initiatives for its Viraleze product during the first half, “expanding the brand’s digital presence through targeted campaigns on Meta and TikTok and launching an in-flight magazine campaign to maximise exposure throughout the Northern Hemisphere’s peak cold and flu season”.

The company had a record month for sales in November, off the back of a Black Friday marketing campaign, and also expanded distribution through Amazon in the UK.

This resulted in an increase in sales of 70% over the previous corresponding period last year.

Starpharma shares were changing hands for 37.5 cents on Thursday, up 10.3%.

The company was valued at $142.8 million at the close of trade on Wednesday.

The post Strong interest drives drug developer’s shares higher appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Starpharma. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Goldman Sachs Group. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Last year was fantastic for ASX exchange-traded funds (ETFs) exposed to ripsnorting commodity prices and mining stocks.

Here are four examples.

Betashares Global Gold Miners Currency Hedged ETF (ASX: MNRS)

The MNRS ETF gave a total return, including dividends, of 149% last year.

MNRS tracks the Nasdaq Global ex-Australia Gold Miners Hedged AUD Index.

The MNRS ETF invests in 56 gold shares, with 44% in Canada, 14% in the US, 13% in South Africa, and 8% in Brazil.

Its largest holding is Newmont Corporation (NYSE: NEM), which has CDIs listed on the ASX as Newmont Corporation CDI (ASX: NEM).

Newmont CDI shares are the only Aussie representation in the fund.

This ASX ETF has total net assets of $301 million and a management fee of 0.57%.

MNRS ETF is $20.01 per unit, up 2.62% today.

VanEck Gold Miners AUD ETF (ASX: GDX)

The GDX ETF gave a total return of 139% last year.

The GDX ETF invests in 93 shares, with 44% in Canada, 20% in the US, 11% in Australia, and 6% in China.

The biggest holding is Newmont shares, and it’s also invested in Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN).

This ETF has total net assets of $1.9 billion and a 0.53% fee.

GDX ETF is $166.60 per unit, up 2.21% today.

Global X Physical Silver Structured (ASX: ETPMAG)

The ETPMAG ETF delivered 133% returns last year.

This ETF simply tracks the silver price, so it pays no dividends.

The silver price ripped 147% higher last year. But get this: as of today, the commodity is up 272% year over year. It’s nuts!

Silver is a key input for solar panels, electric vehicles, data centres, and modern tech equipment such as smartphones and laptops.

The commodity was added to the US Critical Minerals list in November due to a global shortage and rising demand.

ETPMAG is backed by physical silver. Each physical bar is segregated, individually identified, and allocated.

This ASX ETF has total net assets of $2 billion and a 0.49% fee.

ETPMAG ETF is $154.99 per unit, up 1.77% at the time of writing.

Global X is further capturing silver’s run by launching a brand-new ETF this week, the Global X Silver Miners ETF (ASX: SLVM). 

Global X Physical Platinum Structured (ASX: ETPMPT)

The ETPMPT ETF gave a total return of 109% last year.

Like gold and silver, platinum is flying. The metal’s price rose 125% in CY25 and is currently up 170% over 12 months.

Platinum is one of six metals in the Platinum Group Elements (PMEs).

PMEs are on the critical minerals lists of many countries, including the US and Australia.

Platinum is primarily used in the automotive industry. It’s in the catalytic converters that reduce a vehicle’s emissions.

ETPMPT is also backed by physical platinum, with segregated, individually identified, and allocated bars.

This ASX ETF has total net assets of $123 million and a 0.49% fee.

ETPMPT ETF is $359.07 per unit, up 1.05% today.

The post 4 ASX ETFs that produced 110% to 150% returns in 2025 appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Global X Physical Precious Metals Basket – Global X Physical Silver. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

Shares in Instagram, Facebook and WhatsApp owner Meta Platforms (NASDAQ: META) surged 7.5% in US after-hours trading after the tech giant delivered a strong fourth-quarter result and doubled down on its ambitious artificial intelligence (AI) spending plans.

For Australian investors, the move is highly relevant. Meta is a major holding in several ASX-listed ETFs, including the BetaShares NASDAQ 100 ETF (ASX: NDQ), VanEck Morningstar Wide Moat ETF (ASX: MOAT), ETFS FANG+ ETF (ASX: FANG), and the Global X Artificial Intelligence ETF (ASX: GXAI).

What did Meta report?

Overall, Meta’s numbers were impressive. Fourth-quarter revenue jumped 24% year on year to US$59.9 billion, while earnings per share rose 11% as costs climbed sharply. Advertising demand remained strong, daily active users across Meta’s platforms increased, and management guided to around 30% revenue growth in the March quarter was a clear acceleration from full-year growth.

But the result wasn’t really about last quarter’s earnings. It was about spending.

Meta now expects capital expenditure of US$115 billion – US$135 billion in 2026, as it pours money into data centres, AI infrastructure, and what CEO Mark Zuckerberg has described as “personal superintelligence“.

That’s an extraordinary number and one that would normally make investors nervous, but the market welcomed it.

The reason is straightforward. Meta is funding this AI arms race from a position of strength. Its core advertising business is growing rapidly, generating enormous cash flows, and still delivering operating margins above 40%. Management has also indicated that, despite the surge in investment, 2026 operating income should be higher than 2025.

The bigger question is whether the spending will ultimately be worth it.

In the near term, AI investment is likely to boost investor sentiment around Meta as an “AI winner” whilst also potentially boosting revenue growth but weighing on earnings-per-share growth in 2026 as depreciation and infrastructure costs ramp up.

Investors, therefore, need to look beyond next year to assess the payoff.

The bull case is that current investments strengthen Meta’s moat, and if Meta’s AI push leads to new products, better ad performance, and sustained elevated growth beyond 2026, the current spending surge could prove highly profitable over time.

Foolish bottom line

Meta’s rally is a vote of confidence that Zuckerberg and his team are striking the right balance between growth, profitability, and AI investments.

There was also a sense, going into the result, that Meta wasn’t priced at an extreme valuation multiple relative to its growth, though execution risk remained. The sharp share price reaction suggests investors are increasingly confident that Meta is on the right track.

The post Meta shares soar as huge AI investments continue appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has positions in Meta Platforms. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and Meta Platforms. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Meta Platforms and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With cost-of-living pressures biting, retail is a difficult space to be in at the moment.

That said, it doesn’t mean there aren’t companies that stand out from the pack and are worth looking at from an investment perspective.

RBC Capital Markets has looked at the sector broadly and come up with some key picks for your portfolio.

For a start, they say broadly that things certainly are competitive:

While we expect the sector to report in-line revenue, we anticipate elevated discounting and competition may present downside risk to gross margin outcomes as evidenced by Super Retail Group‘s and Endeavour Group‘s recent announcements. Woolworths and JB Hi-Fi stand out as other names facing potential downside risk to gross margins.

So who does the RBC team think will surprise on the upside this reporting season?

Collins Foods Ltd (ASX: CKF)

RBC has had a look at Collins Foods and says its FY26 net profit guidance “looks conservative to us”.

The company is guiding for growth in the mid to high teens; however, RBC has done the sums and believes it’s likely to come in at the top of that range.

They also point out that chicken “may be structurally oversupplied in Australia”, which could be good news on the cost front for the KFC operator.  

RBC has a price target of $12.80 on Collins Foods shares compared with $10.75 currently.

Coles Group Limited (ASX: COL)

When it comes to Coles Group, RBC says market share trends will be the focus, with Woolworths Ltd (ASX: WOW) discounting to gain market share.

We believe a narrowing of share tends in the second quarter is likely, though we forecast Coles has done a better job of protecting margins.

RBC said, “outsized cash flow growth will provide scope for Coles to invest in further entrenching structural cost advantages.”

RBC has a price target of $24 on Coles, compared with its current price of $20.76.

Super Retail Group (ASX: SUL)

Over at Super Retail, RBC says much of the negative news has been released before the reporting season.

They say the company has scope to grow across multiple brands.

Supercheap Auto has an opportunity to improve execution (store format, range) to take share from Autobarn. Rebel top-line trends remain solid, and stronger execution should enable Rebel to more effectively deliver margin outcomes going forward.

RBC says with sales growth figures already pre-released, the focus for reporting season will be on cash flow, the balance sheet, and the first eight weeks of trade in the second half.

RBC has a price target of $16.10 on Super Retail shares, compared with its current price of $14.50.

The post Which ASX retail stocks look like good buying ahead of the looming reporting season? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group and Woolworths Group. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Expectations were already high heading into Mesoblast Ltd (ASX: MSB) latest quarterly update.

The biotech delivered another milestone-filled quarter, with rising revenues and continued progress toward commercialisation in the United States.

Yet instead of pushing higher, Mesoblast shares have slipped 3.33% to $2.61 as the market digested the numbers.

Today’s reaction appears investors are looking for more than just the company’s progress alone.

Here’s what was reported.

Revenue lifts as Ryoncil rollout continues

According to the release, Mesoblast reported net revenues of US$30 million for the quarter, driven by continued uptake of Ryoncil in the United States.

Gross sales reached US$35 million for the quarter. Demand continues to build following FDA approval for use in children with steroid-refractory acute graft-versus-host disease.

In addition, more treatment centres are coming online. Mesoblast also pointed to steady progress in real-world use, with early post-approval data showing survival outcomes broadly consistent with clinical trial results.

The group continues to work with hospitals and payers to support broader adoption, as awareness of the therapy increases across specialist treatment centres.

Cash burn remains the key focus

While revenue growth is encouraging, the quarterly cash flow statement explains the share price reaction.

Mesoblast recorded net operating cash outflows of US$15.6 million for the quarter. Research and development spending remained high, while manufacturing and operating costs also continued as the company supports commercial scale-up.

At quarter end, Mesoblast held US$130 million in cash and cash equivalents. That gives it around 11.6 quarters of funding based on current burn rates, which provides breathing room but not financial flexibility.

The company also drew down US$75 million from a new US$125 million credit facility during the quarter. While this strengthens short-term liquidity, debt funding always raises investor concerns around future dilution or refinancing risk.

Progress on pipeline beyond Ryoncil

Beyond its approved product, Mesoblast continues to advance several late-stage programs.

The confirmatory Phase 3 trial for chronic low back pain remains active across multiple US sites. The company also highlighted regulatory engagement with the FDA around a potential biologics licence application for heart failure, which could become a meaningful driver if timelines stay on track.

Foolish takeaway

Mesoblast’s latest update shows a business that is transitioning out of its development phase and into commercial execution.

From here, the biotech’s shares are likely to be judged quarter by quarter on revenue growth, costs, and how quickly the company can reduce its cash burn.

That means the market will start looking at progress to show up in the financials. Until it does, short-term share price swings are likely to continue.

The post This ASX 200 stock just reported a milestone quarter. So why are its shares falling? appeared first on The Motley Fool Australia.

More reading

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• Has this ASX 200 stock just turned the corner after 7% surge?
• Here are the top 10 ASX 200 shares today
• This rising ASX 200 stock isn’t done yet – or is it?
• Mesoblast just cleared a key FDA hurdle. So why are investors exiting?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.