Tag: Motley Fool Australia

Poseidon Nickel Ltd (ASX: POS) shares have surged 40.63% in today’s trade to 4.5 cents at the time of writing. The rising Poseidon share price came after the company announced a positive intersection at its Golden Swan deposit.

What was in the announcement?

According to the announcement, the company intersected 9 metres of massive nickel sulphides at its Golden Swan deposit. The assays from the result are pending. The intersection is around 50 metres away from another recent discovery hole which previously intersected 7.6 metres at 8.8% nickel.

Poseidon stated that the massive nickel sulphides sit on a highly prospective felsic terrace, which refers to a terrace of a particular volcanic rock, that could parallel the nearby Silver Swan underground mine. Drilling is set to continue.

Poseidon Nickel’s Managing Director and CEO, Peter Harold, commented on the result, stating;

“This latest intersection has been worth waiting for after operational delays caused by COVID and then the completion of the important Downhole Electromagnetic (DHEM) platform hole below Golden Swan slowed progress. The recently completed drill hole confirms the nickel sulphide nature of the EM responses measured to date and we are looking forward to receiving the assays. With the installation of the underground loop nearing completion we hope to highlight further potential around the current Golden Swan intersections as our geological understanding of this area improves.”

About the Poseidon share price

Poseidon is a nickel producer and explorer with operations in Australia. The company currently has three projects in operation within 300km of Kalgoorlie, Western Australia.

In its quarterly report to 30 June 2020, the company announced that it had discovered 4% nickel over 23.1 metres at its Golden Swan deposit. This included a high grade component of 2.1 metres that averaged 15.9% nickel.

The company had cash at the end of the June quarter of $45,224,000 compared to $48,581,000 at the end of the previous quarter.

Poseidon Nickel released a business update in June which stated the company had combined nickel resources of 395,530 tonnes and 180,000 ounces of gold.

The Poseidon share price is up 80% from its 52 week low of 2.5 cents and 12.5% since the beginning of the year after today’s rise. The Poseidon share price is also 12.5% up since this time last year.

More reading

• 3 property shares I’d rather buy over an investment property
• Why Amazon shares climbed 14% last month
• The latest ASX stocks to be hit by broker downgrades today
• Why Alterity Therapeutics’ share price has rocketed 96% in 2 days
• Earnings preview: What to expect from the Coles FY 2020 result

Motley Fool contributor Chris Chitty 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.

The post Poseidon share price up 40% on positive announcement appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3k785kR

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.

What happened

Amazon.com, Inc (NASDAQ: AMZN) shares moved higher in July, riding a bullish wave in e-commerce stocks as the United States experienced another resurgence of COVID-19 cases. The tech giant also reported a blowout earnings report at the end of the month. According to data from S&P Global Market Intelligence, the stock finished the month up 14%. 

As you can see from the chart below, the stock got off to a strong start and held on to those gains for the duration of July, surging on its earnings report at the end.

^SPX data by YCharts

So what?

Amazon shares jumped out of the gate at the beginning of July. This early rise might have been part of broader market gains on a June unemployment report strong enough to suggest the economy was rebounding from the coronavirus crisis.

The stock then benefited from a rise in COVID-19 cases that led some states to pump the brakes on reopening measures and caused investors to anticipate extended impact from the pandemic. These factors suggest that reliance on digital services will only increase.

With its strength in e-commerce, cloud computing, and video streaming, Amazon has been one of the biggest beneficiaries of the pandemic. Its stock has about doubled from its depths during March and now tops a $1.5 trillion market value.

The company also launched a new healthcare partnership with Crossover Health in July to open clinics for Amazon employees. The move potentially brings Amazon closer to disrupting the $4 trillion healthcare market and finding a new avenue for growth.  

The company’s second-quarter earnings report confirmed investors’ high expectations, as sales jumped 40% in the quarter and earnings per share nearly doubled.

Now what

The second-quarter report was Amazon’s best ever and a testament to its strength in e-commerce and areas like cloud computing. It expects to grow its warehouse space by 50% in the second half of the year as it ramps up for the holiday season and a delayed Prime Day.

This anticipated increase in warehouse capacity signifies that investors should expect the company’s breakneck growth to continue. While Amazon stock is still pricey according to conventional metrics, the surge in profitability shows that it still has plenty of upside potential.

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

More reading

• Better Buy: Alphabet vs. Amazon
• 3 ways to play the skyrocketing tech shares
• Better Buy: Netflix vs. Amazon
• Why Amazon’s share price is set to leap on the opening bell
• US tech shares deliver massive results – what does it mean for ASX tech shares?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.  Jeremy Bowman owns shares of Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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.

The post Why Amazon shares climbed 14% last month appeared first on Motley Fool Australia.

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

from Motley Fool Australia https://ift.tt/33r6vV1

The S&P/ASX 200 Index (Index:^AXJO) is trying to claw back from steep morning losses, but sentiment towards some ASX stocks remain poor.

The top 200 stock benchmark is down 0.5% at the time of writing, but it’s at least managed to climb back to 6,000. It hit an intraday low of 5,966 in morning trade.

However, some remain deep in the red after leading brokers downgraded their recommendation on these ASX stocks.

Large legal liability

One that’s wallowing in the red is the Monadelphous Group Limited (ASX: MND) share price. Shares in engineering contractor slumped 3.5% to $7.98 after UBS swung an axe to its valuation and rating.

The broker’s move is driven by a legal stoush between the company and its client Rio Tinto Limited (ASX: RIO).

Rio Tinto is suing Monadelphous for $493 million as the miner believes the contractor was responsible for a fire at its Cape Lambert facility in 2019.

Risk of earnings wipeout

This is a very significant amount and Monadelphous’ insurance will only goes up to $150 million. The net $343 million (before legal costs) is nearly half of Monadelphous’ market cap!

“While there are many possible outcomes with respect to the legal proceedings, given the significant size of the claim, we think the proceedings may represent a share price overhang that could limit outperformance until the issue is resolved,” said UBS.

The broker cut its recommendation on the stock to “neutral” from “buy” and lowered its price target to $8.45 from $13.35 a share.

ASX banks to dump

ASX bank stocks are lagging the market today, but two in particularly are underperforming after being downgraded by Macquarie Group Ltd (ASX: MQG).

These are the National Australia Bank Ltd. (ASX: NAB) share price and Bendigo and Adelaide Bank Ltd (ASX: BEN) share price, which fell by nearly 2% each at the time of writing.

The broker cut its rating on NAB by two notches to “underperform” from “outperform” and downgraded Bendigo Bank to “underperform” from “neutral”.

Market expectations set too high

The bearish change of heart comes on the back of the broker’s review of impairment charges for the sector.

“With ~10-15% of consumer and SME loans being deferred, a weak economic outlook and challenges stemming from the recent lockdowns in Victoria contribute to material downside risk to bank earnings, in our view,” said Macquarie.

“We remain substantially below consensus, and with additional risks stemming from lockdowns in Victoria, which may extend to other states, we continue to see material downside risk to expectations.”

The broker’s price targets on NAB and Bendigo Bank are $17.50 and $6.25, respectively.

More reading

• Top brokers name 3 ASX 200 shares to buy today
• Why the Treasury Wine share price is sinking today
• Why Cochlear, NAB, Tabcorp, & Telstra shares are tumbling lower
• ASX marching higher despite COVID-19: Where should you invest?
• Why this ASX miner that’s missing the rally is one of my key picks for FY21

Motley Fool contributor Brendon Lau owns shares of National Australia Bank Ltd. and Macquarie Group Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended Macquarie Group 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.

The post The latest ASX stocks to be hit by broker downgrades today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2XtZq20

The Alterity Therapeutics Ltd (ASX: ATH) share price has continued its strong surge from yesterday, trading more than 50% higher again today.

Although the company has not released any price sensitive news, it can be assumed that the price leap is a reflection of yesterday’s news.

What did Alterity announce yesterday?

Alterity’s announcement yesterday highlighted independent data that confirmed the safety profile of the company’s lead drug candidate, ATH434. The animal study tested ATH434 against multiple system atrophy (MSA) and confirmed that the drug reduced alpha-synuclein pathology, preserved neurons and improved motor performance in patients with MSA.

Alterity will present the findings at the 2020 International Congress of Parkinson’s Disease and Movement Disorders and the American Neurological Association’s annual meeting. The company will also present cardiac safety data from its Phase 1 study of ATH434. This will be the first time that information is shared with international clinicians and researchers.

What is the outlook for Alterity?

Biotech company Alterity focuses on therapies for neurodegenerative diseases such as MSA, which is an atypical form of Parkinson’s disease that can lead to rapid motor degeneration and paralysis.

Alterity’s lead candidate, ATH434, is an orally bio-available, brain penetrant that’s designed to inhibit the accumulation of pathological proteins involved in neurodegeneration.

As a result, Alterity’s therapy has the potential to treat Parkinson’s disease and other atypical forms of the disease such as MSA.

According to Alterity’s management, there is an unmet medical need for new treatments for MSA with most symptoms of the disease remaining unaddressed by available drugs for Parkinson’s disease.

Alterity is now pursuing a global development strategy for the testing and commercialisation of the drug, after last month announcing it had established a development pathway for ATH434 in MSA with the US Food and Drug Administration.

The Alterity share price has surged more than 96% in the past 2 days, after rocketing a further 50% today. At the time of writing, the Alterity share price is trading near it’s intraday high of 7.2 cents.

More reading

• Alterity Therapeutics share price rockets 70% on new data
• Why Etherstack and these shares were the most traded on the ASX last week

Motley Fool contributor Nikhil Gangaram 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.

The post Why Alterity Therapeutics’ share price has rocketed 96% in 2 days appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/39UngZZ

The Coles Group Ltd (ASX: COL) share price will be in focus later this month when it releases its highly anticipated full year results.

The supermarket giant and rival Woolworths Group Ltd (ASX: WOW) are two of only a handful of companies on the S&P/ASX 200 Index (ASX: XJO) that have been benefiting from the pandemic.

Ahead of the release of its full year results on 18 August, I thought I would see what analysts are expecting from the company.

What is expected from Coles in FY 2020?

According to a note out of Goldman Sachs, its analysts expect Coles to deliver stronger than expected sales and profit growth in FY 2020.

The broker has forecast total sales of $37.5 billion, which will be a 7.1% year on year increase and 1.1% ahead of the market consensus.

Also growing at a solid rate will be its earnings before interest and tax (EBIT). Goldman is expecting Coles to report EBIT of $1392.4 million. This represents a 5.1% year on year increase. And on a post-AASB16 basis, Goldman expects EBIT to come in at $1,759.1 million. This is 0.8% higher than the consensus estimate.

Finally, its analysts are forecasting FY 2020 underlying net profit after tax to be $928.2 million and operating cash flow of $2,824.6 million.:

Food segment.

Goldman Sachs expects the key Food segment to deliver comparable store sales growth of 6.2% in FY 2020, which implies comparable store sales growth of 10.7% for the second half.

This will ultimately lead to Food sales of $33.2 billion for the year.

And thanks to a 10-basis point increase in its margins, Food EBIT is expected to be up 10.3% to $1,304.7 million.

Liquor segment.

The broker also expects its Liquor segment to deliver strong comparable store sales growth. It is forecasting comp growth of 4.4%, taking its total sales 6.3% higher for the year to $3,254.7 million.

However, unlike the Food segment, Goldman is forecasting weaker margins for the Liquor segment. It expects margin decline of 40 basis points, leading to segment EBIT of A$114.5 million. This will be a 4.6% decline year on year.

Coles Express.

The Coles Express segment is expected to act as a drag on its FY 2020 result.

Although the broker expects just a small 0.3% year on year sales decline to $1,045.1 million, it is expecting the segment to post a loss. This compares to its segment EBIT of $50 million in FY 2019.

Taken off conviction buy list.

In light of the strong performance by the Coles share price this year, the broker has removed it from its conviction buy list on valuation grounds.

Goldman explained: “While our thesis remains intact on COL, we remove the stock from our Conviction List in view of the relative limited upside. Since being added to the Conviction list on the 3rd of March 2020, the COL share price is up +25% vs. the ASX 200 being -6.2% (outperformance of 31.2%) and also outperforming supermarket peer WOW by 20% over the period.”

“We maintain the Buy rating on COL on the basis of the reliable ongoing growth and strong balance sheet story,” it concluded. I would agree with this view.

More reading

• 4 coronavirus-resistant blue chip ASX shares
• Coronavirus: What does lockdown mean for ASX retail shares like JB Hi-Fi?
• 3 ASX shares with generous dividend yields to buy today
• 3 high quality blue chip ASX 200 shares to buy
• Will the Coles share price rocket higher again in August?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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.

The post Earnings preview: What to expect from the Coles FY 2020 result appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31eGXrq

One area of the market which I continue to believe is home to a large number of quality options for investors is the mid cap space.

Three top mid cap shares which I believe could one day become much larger companies are listed below. Here’s why I think they would be quality long-term investments:

Collins Foods Ltd (ASX: CKF)

The first mid cap ASX share to consider buying is this quick service restaurant operator. Collins Foods is one of the largest operators of KFC stores in the world. It has a growing network of restaurants across Australia and also in the under-penetrated European market. It is the latter market which I believe could be the key driver of growth over the next decade. Also supporting its growth will be the rollout of the Taco Bell brand across Australia. This rollout has been going very well and is showing a lot promise. This could mean that after two failed attempts to crack the Australian market over the last 40 years, it will be third time lucky for the Taco Bell brand.

Jumbo Interactive (ASX: JIN)

Another mid cap share to consider buying is Jumbo. It is the online lottery ticket seller behind the Oz Lotteries website. But that’s not the only thing the company does. It also has its Powered by Jumbo software as a service business. It is this business which is expected to become the driver of its future growth and play a key role in the company achieving its target of $1 billion in ticket sales through the Jumbo platform by FY 2022. This will be triple what it achieved in FY 2019. Given how a material portion of lotteries are still not online, I believe the Powered by Jumbo business has a very lucrative global opportunity.

Nanosonics Ltd (ASX: NAN)

Nanosonics is the infection control specialist behind the trophon EPR disinfection system for ultrasound probes. I’m a big fan of the company due to the quality of the product and the growing recurring revenues it generates from consumables sales. Given its massive market opportunity, and management’s plan to launch several new products targeting unmet needs in the near term, I believe Nanosonics is well-positioned to continue its strong growth for many years to come. Though, it is worth noting that its FY 2020’s sales performance is likely to be stifled by the pandemic. However, I’m confident there will be a sharp rebound in 2021.

More reading

• Here’s how to start investing with $5k
• Smart investors should buy these ASX growth shares
• How to turn $20,000 into over $200,000 in 10 year with ASX shares
• 3 quality ASX shares to add to your portfolio
• 2 top ASX shares to buy for reporting season

James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Collins Foods Limited and Nanosonics 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.

The post 3 stellar mid cap ASX shares to buy appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3fvKLJM

The Silver Mines Limited (ASX: SVL) share price has hit a 52-week high today as the silver price continues its climb.

The silver price rallied 30.63% in July, taking gains since March to 110%. Many commentators remain bullish on the silver price, arguing expansionary fiscal and monetary policy will lead to falling real yields. Historically, this has benefited precious metal prices. 

What does Silver Mines do?

Perhaps unsurprisingly, Silver Mines mines silver. The company holds the high grade Conrad and Webbs projects in Northern New South Wales. Its strategy is to consolidate quality silver deposits in NSW to form Australia’s pre-eminent silver company. Silver Mines recently purchased the Bowdens Silver Project near Mudgee in NSW. This is the largest undeveloped silver project in Australia and one of the largest globally. 

What is the plan for the Bowdens Silver Project? 

Silver Mines has submitted a development application for an open cut mine and processing plant to the NSW Department of Planning, Industry, and Environment.

The plant is designed for 2.0 million tonnes per annum with a project life of 16.5 years. Life of mine production is planned to be approximately 66 million ounces of silver, 130,000 tonnes of zinc, and 95,000 tonnes of lead. The company has committed to expanding drilling activities at Bowden Silver, which are likely to continue until the end of calendar year 2020. 

How has COVID-19 impacted the company?

Silver Mines reports that current operations have continued safely with minimal interruption from the coronavirus pandemic. Field activities including drilling in the Bowdens silver area (where the company can control access) have continued. Some activities at regional projects have been put on hold and some are due to recommence during the September quarter. 

How has Silver Mines been performing? 

The Silver Mines share price was trading below 6 cents in March, but has now surged to 25 cents. This means the Silver Mines share price has gained more than 300% over the last few months.

The company conducted a $12 million capital raise in May at 10 cents a share, with funds earmarked for the pre-development progression of the Bowdens Silver Mine. Funding will also be used for land acquisitions and for corporate and working capital purposes.

More reading

• Earnings preview: What to expect from the Coles FY 2020 result
• 3 stellar mid cap ASX shares to buy
• Top brokers name 3 ASX 200 shares to buy today
• Why the Treasury Wine share price is sinking today
• De Gray Mining share price lifts on strong results

Motley Fool contributor Kate O’Brien 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.

The post The Silver Mines share price has hit a 52-week high. Here’s why. appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31nrhCj

Many of Australia’s top brokers have been busy adjusting their financial models 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 200 shares are in the buy zone:

CSL Limited (ASX: CSL)

According to a note out of Citi, its analysts have retained their buy rating and $334.00 price target on this biotherapeutics company’s shares ahead of its full year results release. Although it has concerns about the impact of the coronavirus on plasma collections, it isn’t enough for a change of rating. It believes CSL’s shares are good value after their recent pullback and holds firm with its buy rating. I agree with Citi on CSL and would be a buyer of its shares today.

Corporate Travel Management Ltd (ASX: CTD)

Analysts at Morgans have upgraded this travel company’s shares to an add rating with a $12.85 price target. According to the note, the broker made the move on valuation grounds after a sharp pullback in the Corporate Travel Management share price. This has left it trading at a sizeable discount to the broker’s valuation. In addition to this, it believes that corporate travel demand has been stronger than expected recently and it could surprise to the upside in FY 2021. Another positive is its current liquidity. The broker estimates that this will be enough to last until the end of FY 2022 if necessary. While I think Morgans makes some great points, I’m staying clear of the travel sector until the crisis passes.

Ramsay Health Care Limited (ASX: RHC)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this private hospital operator’s shares to $72.50. Although the broker notes that Ramsay is operating in an environment where elective procedures are being pushed back because of the pandemic, it feels investors should overlook this and focus on the future. Macquarie’s analysts remain very positive on Ramsay’s long term outlook and believe it is well-positioned for growth once the pandemic passes. I agree with Macquarie and feel Ramsay would be a great buy and hold option.

More reading

• Why the Treasury Wine share price is sinking today
• ASX marching higher despite COVID-19: Where should you invest?
• Why this ASX miner that’s missing the rally is one of my key picks for FY21
• ASX 200 down 1.15%: NAB downgraded, Telstra asset sale, gold miners rocket
• Coronavirus: What does lockdown mean for ASX retail shares like JB Hi-Fi?

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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Ramsay Health Care 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.

The post Top brokers name 3 ASX 200 shares to buy today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3i9F9Xz

The Treasury Wine Estates Ltd (ASX: TWE) share price is marching lower today, down by 2.37% to $10.73 at the time of writing

This drop is likely being somewhat driven by the broader losses associated with the S&P/ASX 200 Index (ASX: XJO) today, but a top broker’s rating of “Overweight” for the stock this morning is definitely adding to the Treasury Wine share price’s woes.

What did the broker say?

A note out of Morgan Stanley revealed that wine exports to China were down by as much as 16% in the June quarter on a year-on-year basis. Notably, Morgan Stanley saw this as a better than expected result, and in fact an improvement relative to the previous March quarter.

Although the broker didn’t specify the likely causes behind this, the 2 that come to mind are the diminished consumption of premium wines in Asian markets due to COVID-19 restrictions, as well as heightened Australia–China diplomatic tensions generally creating a headwind for exports.

The company has forecast a 14% decline in FY20 operating income for its Asian markets to reflect the greater difficulty in one of its key operating environments.

Despite lower consumption, Morgan Stanley retained a current price target on Treasury Wines at $13.50, suggesting the stock may be currently undervalued by as much as 25%.

In providing a forecast for the coming 12 months over FY21, the broker expected full-year dividends of 29.70 cents per share, and earnings per share of 46 cents. On this basis, Treasury Wines could foreseeably pay out a 2.7% fully-franked dividend yield to its shareholders over the next year.

Should you invest?

I’m a big fan of the brands sold by Treasury Wine, including most famously Penfolds, Wolf Blass and the less well-known 19 Crimes brand.

While the company has been hard-hit by this year’s bushfires and Australia–China diplomacy, I see a lot of upside for the company to perform strongly over the medium to long-term. The Penfolds brand has been liquid gold for Treasury Wine for decades, and I expect this to continue to a large extent moving forward.

Notwithstanding this, I expect the wine-maker to take a short-term hit for FY20 and FY21 due to the current economic recession and the impact this has on consumers’ willingness to spend on luxury goods such as expensive wines.

Thus, now may be the time for prospective investors to buy into Treasury Wine, with the hope the Treasure Wine share price may get back to its September 2019 highs of as much as $19.47.

More reading

• Top brokers name 3 ASX 200 shares to buy today
• ASX marching higher despite COVID-19: Where should you invest?
• Why this ASX miner that’s missing the rally is one of my key picks for FY21
• ASX 200 down 1.15%: NAB downgraded, Telstra asset sale, gold miners rocket
• Coronavirus: What does lockdown mean for ASX retail shares like JB Hi-Fi?

Motley Fool contributor Toby Thomas owns shares of Treasury Wine Estates Limited. 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.

The post Why the Treasury Wine share price is sinking today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3i5S8JK

The De Gray Mining Limited (ASX:DEG) share price has bolted more than 6% in early trade after the company released strong drilling results.

Highlights from De Gray’s results

Earlier today, De Gray released drilling results from the western extension of the Aquila site at the Hemi Gold Discovery in Western Australia. The results were collected from shallow aircore and RC drilling at the western end of Aquila.

The report highlights included;

• 16m @ 3.7g/t Au from 43m including 10m @ 5.4g/t in HERC141 (ending in mineralisation)
• 16m @ 2.1g/t Au from 44m in BWAC783 including 4m @ 3.5g/t
• 13m @ 1.8g/t Au from 71m in BWAC908 including 2m @ 3.8g/t
• 8m @ 1.6g/t Au from 56m in BWAC800

The results confirm shallow gold mineralisation over approximately 400 metres in the north-south direction. De Gray’s management noted the potential in a larger extension of the Aquila gold system. As a result, further drilling is planned for Aquila with the strike potential now spanning more than 1.6km.

What does De Gray Mining do?

De Gray is a mining company based in Western Australia that focuses in gold exploration and development activities. The company has 100% ownership of the Mallina Gold Project in the Pilbara region and is also the site of the Hemi Gold Project.

The Hemi Project is made up of various zones including; Aquila, Brolga, Brolga South and Crow. De Gray has noted thick and high-grade mineralisation across the project and expects the site to deliver high value given the size, grade continuity and growth potential.

In late April, De Gray completed a $31.2 million capital raising in order to fund the ongoing exploration of the Hemi Project. The company’s share price has reflected the optimisim of the new project, having rallied more than 280% since late April. The De Gray share price has also been assisted by the surge in the spot gold price in 2020.

At the time of writing, the De Gray share price is trading more than 5% higher for the day at around 84 cents after hitting an intra-day high of 85.5 cents.

More reading

• De Grey share price rising following mine extensions
• Azure Minerals share price rockets 24% on acquisition news
• Why De Grey, Openpay, Woodside, & Zip shares are dropping lower
• De Grey Mining share price plunges another 13% lower today
• Why the De Grey share price rocketed more than 107% in June

Motley Fool contributor Nikhil Gangaram 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.

The post De Gray Mining share price lifts on strong results appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ia94is