Tag: Motley Fool

The Coles Group Ltd (ASX: COL) share price is taking a hammering on the market on Thursday.

At least the supermarket giant isn’t alone in the red. It’s suffering alongside many of its consumer staple peers.

At the time of writing, the Coles share price is $17.61, 4.55% lower than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently recording a 1.65% tumble.

Let’s take a closer look at what’s going on with the supermarket stock today.

What’s going wrong for the Coles share price?

The Coles share price is tumbling to its lowest point since March despite no news from the supermarket giant.

And while its slump appears to be a mystery, there’s likely an obvious explanation for its tumble.

The company’s home sector – the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) ­– is also in the red. Right now, it’s down 4.46%, coming in as the ASX 200’s worst performing sector.

And the Coles share price is the sector’s third worst performer on Thursday.

It has only managed to outperform stock in Woolworths Group Ltd (ASX: WOW) and Metcash Limited (ASX: MTS). Both companies are currently down 7% and 5.8% respectively.

The consumer staples sector’s downturn ­­– and that of the broader ASX 200 – follows a similar tumble on Wall Street overnight.

Then, US retail giant Target Corporation (NYSE: TGT) dropped its first quarter earnings to the detriment of its share price. The stock plummeted a whopping 25% after it reported customer spending recently dropped.

That might likely help trigger fears of a recession in the United States, The Motley Fool Australia’s Bernd Struben reported earlier today.

Understandably, lower customer spending and recessions are both bad news for consumer staples.

Still, despite today’s dip, the Coles share price is just 1.7% lower than it was at the start of 2022. Meanwhile, the ASX 200 has fallen nearly 7%.

The post Here’s why the Coles share price is tumbling 5% today appeared first on The Motley Fool Australia.

More reading

• Why I think Coles is a better ASX dividend share than Woolworths
• 2 top ASX dividend shares analysts are tipping as buys this month
• 4 ASX shares of the most trusted brands in Australia
• Own ASX 200 retail shares? Here’s how the majors are tackling climate change
• Do Coles shares offer a dividend reinvestment plan?

Motley Fool contributor Brooke Cooper 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 COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/DyQH9GY

The Lake Resources N.L. (ASX: LKE) share price is deep in the red on Thursday.

In morning trade, the lithium developer’s shares were down as much as 9% to $1.37.

The Lake share price has recovered a touch this afternoon but remains down 5% at $1.43 currently.

Why is the Lake share price falling?

The weakness in the Lake share price has been driven by another market selloff today. This follows a disappointing night of trade on Wall Street, which saw the Dow Jones drop 2.3% and the Nasdaq tumble 4.7%.

Lake isn’t the only lithium share falling today. At the time of writing, the Liontown Resources Limited (ASX: LTR) share price is down 4% and the Sayona Mining Ltd (ASX: SYA) share price is down 7%.

Today’s decline means the Lake share price is now down by almost 40% in the space of a month. However, it is still up almost 600% since this time last year despite this recent weakness.

Is this a buying opportunity?

Based on a note out of Bell Potter from last month, its analysts are likely to see the pullback in the Lake share price as a buying opportunity.

Its analysts currently have a speculative buy rating and $2.83 price target. This implies potential upside of almost 100% over the next 12 months.

The post Lake Resources share price tumbles again: Broker now sees almost 100% upside appeared first on The Motley Fool Australia.

More reading

• Lake Resources share price drops 9%: Is this a buying opportunity?
• Low charge: Is the party over for ASX lithium stocks?
• Which ASX 200 mining shares were the worst-performing on Friday?
• Why is the Lake Resources sliding 7% into the red on Friday?
• Why is the Novonix share price down 6% on Friday?

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 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.

from The Motley Fool Australia https://ift.tt/MSfJFw0

The Next Science Ltd (ASX: NXS) share price is roaring higher today despite the ASX being deep in the red.

At the time of writing, the medical technology company’s shares are fetching at 89 cents a pop, up 8.54%.

In contrast, the All Ordinaries Index (ASX: XAO) is trading at 7,318.5 points, down 1.46%.

Next Science expands ‘commercial footprint’

Investors are buying up the Next Science share price after the company revealed a positive update to the market.

In its release, Next Science advised it has signed a multi-year distribution agreement with Oraderm Pharmaceuticals to sell BlastX.

Located in Cremone, Victoria, Oraderm Pharmaceuticals is a medical sales joint venture between Douglas Pharmaceuticals and Arrotex Pharmaceuticals.

Under the deal, Oraderm will have exclusive rights across Australia and New Zealand for the sale and marketing of BlastX. However, this will be a dual Next ScieUnce/Oraderm labelled version. 

Next Science is expected to receive a portion of revenues based on an agreed unit price and a minimum quantity per order.

The agreement will run for a period of five years but can be extended for another three years.

Oraderm’s initial focus in Australia will be hospitals, nursing homes, dermatologists and over-the-counter pharmacy sales.

In New Zealand, Oraderm will concentrate on wound care in hospitals and other clinical settings accommodating varied distribution solutions.

Next Science is scheduled to deliver training to the distributor’s sales force teams in late June. Commercial sales in Australia and New Zealand are expected to commence during the second half of 2022.

Next Science managing director, Judith Mitchell commented:

We are delighted to expand our commercial footprint for BlastX in Australia and New Zealand through Oraderm.

Oraderm is a well-known brand within the healthcare industry with a track record of success in bringing new products to market. This partnership enhances our ability to offer our proven wound care product to healthcare professionals and patients in Australia and New Zealand as we continue to pursue our mission to heal patients and save lives worldwide by reducing the impacts of biofilms on human health.

Next Science share price summary

Over the past 12 months, the Next Science share price has continued to tread lower to post a loss of 46%.

It’s worth noting that the company’s share price hit a fresh 52-week low of 79.5 cents in late April.

Based on valuation grounds, Next Science presides a market capitalisation of roughly $177.74 million.

The post Next Science shares defy ASX market slump to surge 8% appeared first on The Motley Fool Australia.

More reading

• Lake Resources share price tumbles again: Broker now sees almost 100% upside
• 3 ASX 200 shares defying today’s carnage to climb higher
• Un-stable coin? Terra crypto woes continue with another 31% fall
• Why Aristocrat, Arafura, Calix, and Strike Energy shares are charging higher
• Hawsons Iron share price slumps 9% then rebounds following project update

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 positions in and has recommended Next Science Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/3wmB9fE

The S&P/ASX 200 Index (ASX: XJO) is tumbling on Thursday after US shares suffered a sell-off overnight.

Today’s dip has seemingly been born from concerns the United States could be heading for a recession after a disastrous Wednesday on Wall Street. Additionally, the Australian Bureau of Statistics today announced the nation’s jobless rate dropped to 3.9% in April. A tightening labour market could herald further interest rate rises, putting more pressure on the ASX 200.

So, there’s plenty that could be weighing on the ASX 200 today, and the index is sagging under the strain. Right now, it is recording a 1.5% slump – but not all ASX 200 shares are in the red.

Here’s what’s boosting these ASX 200 constituents higher today.

3 ASX 200 shares in the green on Thursday

Goodman Group (ASX: GMG)

The Goodman share price is defying the downturn on Thursday to trade 0.63% higher at $19.20.

Interestingly, there’s been no news from the property group today. However, earlier this week it released a trading update for the quarter just been.

A strong period of demand has seen the company’s like-for-like net property income increase by 3.7%. Additionally, it upped its guidance for financial year 2022.

It now expects to report earnings per share (EPS) growth of 23% and distribute 30 cents per share this financial year.

Aristocrat Leisure Limited (ASX: ALL)

The share price of under-the-radar ASX 200 giant Aristocrat Leisure is also in the green today. It’s up 5.57% and trading at $33.36 following the release of the company’s half-year earnings.

Its revenue lifted 23% on that of the prior corresponding period, reaching approximately $2.7 billion last half.

Its earnings before interest, tax, depreciation, and amortisation (EBITDA) also rose 30% to $970 million and its net profit surged nearly 41% to $580 million.

That led the gaming technology company to announce a 26 cent interim dividend – a 73% increase – and a $500 million on-market buyback.

Perseus Mining Limited (ASX: PRU)

Finally, the Perseus Mining share price is trading in the green on Thursday despite the ASX 200’s woes. It is currently 1.15% higher at $1.76.

Like that of Goodman Group, the company’s stock is gaining for no obvious reason.

Though, it did release good news about its planned acquisition of Orca Gold Inc earlier this week.

Orca shareholders voted in favour of the takeover on Monday (Canadian time) and Perseus Mining expected regulators to give it the final tick of approval on Wednesday.

Following the regulatory green light, the takeover was expected to be completed today. Though, that could occur overnight Aussie time.

The post 3 ASX 200 shares defying today’s carnage to climb higher appeared first on The Motley Fool Australia.

More reading

• Why Aristocrat, Arafura, Calix, and Strike Energy shares are charging higher
• Zip share price dives to yet another multi-year low
• ASX 200 midday update: Aristocrat’s earnings beat, Webjet flops, retailers smashed
• These ASX 200 companies just lost market share to a small-cap rival
• ASX 200 shares tumble following worst day on Wall Street in 2 years

Motley Fool contributor Brooke Cooper 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.

from The Motley Fool Australia https://ift.tt/C9hAaNs

Terra crypto woes aren’t over yet.

Bargain hunters take note.

The now decidedly un-stable coin, TerraUSD (CRYPTO: UST), plunged another 31% over the past 24 hours to 9 US cents. This comes amid a wider sell-off in cryptos following the biggest drop in US markets in almost two years yesterday (overnight Aussie time).

What’s happening with Terra’s cryptos?

We first penned an article on Terra’s plunge last Thursday. At that time the algorithmic stablecoin intended to be pegged to the US dollar had tanked some 70% and was trading for 30 US cents.

With the latest fall, Terra’s stablecoin is now down 90% since this time last week.

Investors holding Terra (CRYPTO: LUNA) are out far more.

LUNA – a top 10 crypto by market cap before its demise – is the token that was intended to help UST maintain its dollar peg. The idea being that investors could swap one UST for US$1 worth of LUNA at any time.

That worked well. Until it didn’t.

It was only last month, on 5 April, that Luna hit record-highs of US$119.18, according to data from CoinMarketCap.

Last Thursday it plunged to US$1.05.

Today, Terra’s LUNA crypto is trading for 0.01462 US cents. That’s down another 22% over the past 24 hours and down essentially 100% from last month’s all-time highs.

While there’s no single factor that’s led to the collapse of Terra’s cryptos, a large driver appears to be a lack of confidence. Once investors lost confidence in the US dollar peg and began to sell, the token continued to spiral lower.

Beware the hype cycle

Both the Terra crypto offerings were once ranked among the top-10 by market valuation.

But Brent Donnelly, president of Spectra Markets, has some words of caution for investors buying into the hype that often surrounds new and fast-rising altcoins.

According to Donnelly (quoted by Bloomberg):

Every altcoin, regardless of its true promise, has an amazing hype, narrative, and origin story when it’s running higher. Every coin has a marketing department, religious adherents, and a cool story. But very few remain relevant once the primary hype cycle wanes.

Donnelly adds that only four cryptos have shown any staying power in terms of maintaining their market valuations.

“Bitcoin, Ripple, Doge, and Litecoin are the only cryptocurrencies that were in the top 15 by market cap in both 2015 and now,” he said.

“Coins cycle in and out. That’s why all the altcoin charts look like mountains. Altcoins are lotto tickets that only pay off if you take profit before they collapse.”

The post Un-stable coin? Terra crypto woes continue with another 31% fall appeared first on The Motley Fool Australia.

More reading

• Why Aristocrat, Arafura, Calix, and Strike Energy shares are charging higher
• Hawsons Iron share price slumps 9% then rebounds following project update
• Here’s why this ASX ETF is leaping 13% to a new 52-week high today
• How is the Polynovo share price managing to push higher today?
• Why is the Novonix share price sinking 8% today?

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 Terra. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/G9cOuix

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a big decline. At the time of writing, the benchmark index is down 1.5% to 7,075.3 points.

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

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat share price is up 5.5% to $33.34. Investors have been buying this gaming technology company’s shares after its half-year results impressed. Aristocrat reported a 23.1% increase in operating revenue to $2,745.4 million and a 40.9% increase in NPATA to $580.1 million. The latter was well ahead of the consensus estimate of $523 million. Another positive was that Aristocrat has announced a $500 million on-market share buyback.

Arafura Resources Limited (ASX: ARU)

The Arafura share price is up 16% to 40.5 cents. This follows news that the rare earth developer has signed a non-binding memorandum of understanding (MoU) with one of the world’s largest automotive groups, Hyundai. The MoU provides a framework for the parties to negotiate a binding offtake agreement for the supply of up to approximately 1,000 to 1,500 tonnes per annum (tpa) of NdPr Oxide from the Nolans Project. The top end of the range represents over a third of its planned production.

Calix Ltd (ASX: CXL)

The Calix share price is up over 5% to $7.41. This morning the clean energy solutions company revealed that it will receive $11 million from the government’s carbon capture, use, and storage (CCUS) hubs and technologies program to bring low emissions lime production to Adbri Ltd (ASX: ABC).

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is up 4% to 31.7 cents. Investors have been buying this energy company’s shares after it announced the completion of its competitive fertiliser offtake process. This has seen the company sign a non-binding term sheet and exclusive negotiation period with Koch Fertilizer. Strike expects to produce 1.4 million tonnes per annum of granulated urea from its proposed Project Haber fertiliser development.

The post Why Aristocrat, Arafura, Calix, and Strike Energy shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Strike Energy share price is avoiding the bloodshed today
• Calix share price bounces about on $16 million payday
• ASX 200 midday update: Aristocrat’s earnings beat, Webjet flops, retailers smashed
• Arafura share price surges 18% on Hyundai deal
• Jackpot! Aristocrat share price jumps on stellar half-year results

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 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.

from The Motley Fool Australia https://ift.tt/51BCW6a

A new progress report looks like it may have saved the Hawsons Iron Ltd (ASX: HIO) share price from the big market sell-off today.

Hawsons Iron shares dipped to an intraday low of 56 cents in early trading — a 9.7% drop on yesterday’s close of 62 cents. Then just after noon, the iron ore explorer announced it’s another step closer to bringing its flagship project to life.

Management has appointed Australian Mine Design and Development (AMDAD) as the mining consultant. This follows the awarding of other key Bankable Feasibility Study (BFS) contracts earlier this year.

AMDAD will be responsible for preparing a complete mine plan. This will include final pit design, mining sequence, implementing schedules, fleet composition, mine power requirements, and costings and pathways to net-zero emissions.

Hawsons Iron trying to reach net-zero

Just prior to AMDAD’s appointment, management received a report from the consulting arm of Worley Ltd (ASX: WOR), Advisian. The report detailed the ideal energy balance to optimise the project’s ESG and sustainability outcomes.

Hawsons Iron’s executive chairman Bryan Granzien said:

Advisian has also developed a sustainability framework to enable us to embed material sustainability considerations within the project’s decision making and value improvement processes.

The aim of this framework will be to minimise any exposure to risks from material sustainability issues and maximise any opportunities for beneficial outcomes.

Hawsons Iron outshines other ASX resources shares

Many ASX resources shares are on the nose on Thursday. The large crash in US equities last night and lower commodity prices are to blame.

Sector leaders like Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG), and BHP Group Ltd (ASX: BHP) are down 1.5% to 2%.

At the time of writing, the Hawsons Iron share price has recovered almost all of this morning’s losses. It is now down just 0.81%.

Rain presents a challenge

Hawsons Iron is developing the Hawsons Iron Project, which is 60km southwest of Broken Hill in New South Wales.

That region is experiencing very wet weather that is hampering the miner’s operations. It is trying to mitigate this and expedite analysis on a large number of drill samples it has dug up.

Granzien added:

The Bureau Veritas laboratory in Adelaide has been working 24/7 on the analysis of 500 samples a week to generate the assay results required to update the project’s Mineral Resource estimates as scheduled before the end of this quarter.

Everyone’s been working around the clock to ensure we can deliver on time and meet our schedules despite ongoing weather disruptions.

Longer-term Hawsons Iron shareholders are unlikely to worry about today’s share price volatility. The shares have gained more than 400% in value over the past 12 months.

The post Hawsons Iron share price slumps 9% then rebounds following project update appeared first on The Motley Fool Australia.

More reading

• Why did the Hawsons Iron share price stage such a stunning comeback today?
• Why did the Hawsons Iron share price plunge more than 23% today?
• Hawsons Iron share price tumbles another 9% on Friday. What’s going on?
• Hawsons Iron share price volatility continues with more wild swings on Wednesday
• Hawsons Iron share price subjects investors to wild ride on Tuesday

Motley Fool contributor Brendon Lau has positions in BHP Billiton Limited, Fortescue Metals Group Limited, Rio Tinto Ltd., and WorleyParsons Limited. 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.

from The Motley Fool Australia https://ift.tt/AyorlEU

It’s turning into a day of absolute carnage on the ASX boards today. The S&P/ASX 200 Index (ASX: XJO) has lost a painful 1.56% so far today and is well back below 7,100 points. As you might expect, most ASX shares are down across the boards today, with ASX tech shares taking a big hit. This extends to most exchange-traded funds (ETFs) too. The Vanguard Australian Shares Index ETF (ASX: VAS) has also copped a fall of 1.34% so far today. But it’s a whole different story when it comes to the ETFS Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS).

The SNAS ETF is not your typical exchange-traded fund. It’s not designed to hold underlying companies within a portfolio, as most ETFs are. Instead, SNAS is what’s known as an inverse ETF. It’s also a leveraged (or geared) ETF. An inverse ETF is a fund that is designed, using some tricky financial engineering, to rise in value when the value of an index that it tracks falls. In SNAS’ case, the index in question is the US-based NASDAQ-100 (INDEXNASDAQ: NDX).

SNAS-y returns? ETFS Ultra Short Nasdaq 100 Hedge Fund rockets 13%

A leveraged fund again uses financial engineering to give investors an amplified exposure to its underlying investment using borrowed money (or leverage). So in simpler terms, SNAS is designed to rise massively when the Nasdaq 100 Index falls. Here’s how the provider ETFS explains it:

SNAS provides exposure to the Nasdaq-100 Index within a target range of -200% and -275% of the SNAS net asset value. Over a short interval of time, this means that for every 1% movement in the Nasdaq 100 Index, an investment in SNAS is anticipated to return between 2.00% and 2.75% in the opposite direction.

Last night (our time), the Nasdaq 100 fell a painful 5.06%, led by massive losses from the US tech giants like Apple Inc (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN).

So it’s perhaps no surprise then that the SNAS ETF is up a whopping 12.55% so far today to $5.47 a unit. Earlier in today’s trading, this ETF rose as high as $5.54, which was a rise of more than 13% at the time. Sometimes, it pays to go short.

But investors should remember that this kind of ETF cuts both ways. In times of rising markets, an inverse, leveraged ETF like this will suffer. That’s why it was the worst-performing ETF on the ASX last year, with a 2021 loss of 48.7%.

The ETFS Ultra Short Nasdaq 100 Hedge Fund charges a management fee of 1% per annum.

The post Here’s why this ASX ETF is leaping 13% to a new 52-week high today appeared first on The Motley Fool Australia.

More reading

• VAS: Were you better off buying the Nasdaq ETF?
• Is Vanguard’s VAS the ASX’s cheapest index fund?
• What is the Vanguard Diversified High Growth Index ETF invested in?
• How does the VAS dividend compare to a high-yield ETF?
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wB3t19l

In a sea of red across the ASX today, the Polynovo Ltd (ASX: PNV) share price is hovering in positive territory.

During the first hour of trade, the medical device company’s shares soared to an intraday high of $1.34.

However, they have retraced a touch to $1.285, a 4.05% gain on yesterday’s closing price.

In comparison, the All Ordinaries Index (ASX: XAO) is 1.44% in the red in what has become another volatile day.

Polynovo chair seizes buying opportunity

Taking advantage of the recent Polynovo share price weakness, the company’s chair David Williams has picked up more shares.

According to a company release, Williams has bought 346,193 shares at an average price of $1.2431 apiece. This was conducted via an on-market trade by Williams’ subsidiary, Lawn Views Pty Ltd.

The transaction equated to a value of more than $430,300.

Following the latest purchase, Williams now has more than 22.25 million fully paid ordinary Polynovo shares across all holdings.

The latest buy-in could reflect that Williams believes Polynovo shares are trading at bargain levels.

It is worth noting that at the beginning of May, Polynovo shares touched a 52-week low of 83.5 cents. Since then, a number of directors, particularly Williams, have made a series of purchases.

Polynovo share price summary

Despite this month’s 15% gain, Polynovo shares have fallen by almost 50% in the past 12 months.

Although, when looking at the year to date, its shares are down around 18%.

Based on today’s price, Polynovo presides a market capitalisation of roughly $856.89 million.

The post How is the Polynovo share price managing to push higher today? appeared first on The Motley Fool Australia.

More reading

• Why Boral, Eagers Automotive, PolyNovo, and Serko shares are dropping
• These are the 10 most shorted ASX shares
• What’s going on with the Polynovo share price today?
• These were the best performers on the ASX 200 last week
• Why is the Polynovo share price surging 35% in 5 days?

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 positions in and has recommended POLYNOVO FPO. 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.

from The Motley Fool Australia https://ift.tt/LQEFCGe

It has been a tough day of trade for the Novonix Ltd (ASX: NVX) share price on Thursday.

At one stage today, the battery technology company’s shares were down as much as 8% to $3.61.

The Novonix share price has recovered slightly since then, but currently remains down 6.5% at $3.68.

Why is the Novonix share price sinking?

The weakness in the Novonix share price on Thursday has been driven by a broad market selloff.

This follows a very poor night on Wall Street, which saw the Dow Jones index have its worst session since 2020.

The declines have been felt particularly hard the further up the risk curve you go. And with Novonix sporting a $2 billion market capitalisation despite recently reporting quarterly revenue of US$2.1 million, it’s about as high risk as it gets for investors.

Is this a buying opportunity?

While the team at Morgans currently has a hold rating on the company’s shares, its price target of $4.88 implies major upside potential for the Novonix share price.

Though, it is worth highlighting that this broker note was from February and a lot has changed in respect to valuations since then.

In light of this, it may not be wise to assume that this price target will remain the same the next time the broker looks at the company.

The post Why is the Novonix share price sinking 8% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Aristocrat’s earnings beat, Webjet flops, retailers smashed
• Novonix share price fights to stay in the green on Monday
• These were the worst performers on the ASX 200 last week
• Why is the Novonix share price down 9% today?
• The Novonix share price just rebounded 13%. Is it a buy?

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 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.

from The Motley Fool Australia https://ift.tt/LuqExeY