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The Hawsons Iron Ltd (ASX: HIO) share price completed an impressive turnaround on Tuesday after spending the morning in the red.

Despite the company not releasing any announcements since its quarterly report in late April, its shares have been volatile.

At the close of trading today, the resource developer’s shares were swapping hands for 52 cents apiece, up 4%.

For context, its shares were trading at an intraday low of 42 cents, down 16%, during market open.

What caused the significant turnaround?

The broader recovery on the All Ordinaries Index (ASX: XAO) provided support for the Hawsons Iron share price.

The index was recording heavy losses within the first hour of trade, however, bargain hunters swooped in, leading to a turnaround. The All Ords ended the day down 0.99% to 7,285 points, a far cry from 7,158 points in the morning.

Investors appear to have taken advantage of the recent Hawsons Iron share price weakness. A fall of 23% yesterday followed three other big losses over the past week, which has seen it drop back to mid-April levels. This is after the company’s shares went on a wild ride from 26 cents at the start of April to $1.08 on 3 May.

Hawsons Iron is developing the Hawsons Iron project in Broken Hill, New South Wales.

Management is focused on turning the project into a producer of high-quality iron ore products for the global steel industry.

Following the successful pre-feasibility study results in 2017, the company is now focused on progressing the Hawsons Iron project. This includes advancing a bankable feasibility study, securing a mining lease, and commencing production by mid-2024.

Hawsons Iron share price snapshot

The Hawsons Iron share price has rocketed an astonishing 1,040% over the past 12 months.

The incredible feat led the company, formerly known as Carpentaria Resources, to touch an all-time high of $1.08 earlier this month. However, the strong acceleration was short-lived with its shares crashing back to the 50-cent mark.

Based on today’s price, Hawsons Iron commands a market capitalisation of roughly $378.98 million.

The post Why did the Hawsons Iron share price stage such a stunning comeback today? appeared first on The Motley Fool Australia.

More reading

• Why did the BrainChip share price just crash 17%?
• Why did the Hawsons Iron share price plunge more than 23% today?
• 3 quality ASX All Ordinaries shares tumbling 10% or more today
• Hawsons Iron share price tumbles another 9% on Friday. What’s going on?
• Are you investing with the odds in your favour?

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.

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Tuesday was a rough day on the market, with the All Ordinaries Index (ASX: XAO) closing 0.99% lower.

That’s better than its intraday performance. At its lowest point of the day, the index was sporting a 2.5% tumble.

But two All Ords shares stood out among the pack, managing to dodge most of the carnage to record new 52- week highs? Let’s take a look.

2 ASX All Ordinaries shares hitting new 52-week highs

Amcor Plc (ASX: AMC)

The Amcor share price hit an all-time high of $18.26 on Tuesday despite the All Ordinaries’ woes. Interestingly, the company met its new record without releasing any news to the market.

Amcor produces packaging solutions for products like food, beverages, and pharmaceuticals. It operates in more than 40 countries and is listed on both the ASX and the New York Stock Exchange.

The last time the market heard from the company was last week when it released its results for the quarter ended 31 March.

Over the period, Amcor brought in US$3.7 billion of sales – a US$500 million increase on those of the prior comparable quarter.

That likely helped it make a gross profit of US$731 million – a 7% increase.

The Amcor share price has gained 10% since the start of 2022, outperforming the All Ordinaries Index by nearly 18% year to date.

Regis Healthcare Ltd (ASX: REG)

The Regis Healthcare share price leapt 2.5% to a new 52-week high of $2.34 before tumbling to join the All Ordinaries Index in the red today.

The residential care home operator hasn’t released any news to the ASX this month. Still, the market has been bidding its share price higher. It’s gained 5% since the end of April.

The last time the ASX heard from Regis Healthcare was on 14 April. Then, the company announced it had settled a legal dispute brought against its subsidiary, Regis Aged Care by Oneview Healthcare (ASX: ONE).

Oneview Healthcare previously alleged Regis Healthcare breached a collaboration agreement.

The case was settled without either party admitting liability.

The Regis Healthcare share price has gained nearly 19% since the start of 2022. By doing so, it has beaten the All Ordinaries Index’s 2022 performance by 25%.

The post Guess which 2 ASX All Ordinaries shares smashed 52-week highs amid today’s carnage appeared first on The Motley Fool Australia.

More reading

• Macquarie picks ASX 200 shares to buy in this volatile environment
• These were the best performers on the ASX 200 last week
• Guess which ASX 200 shares are defying today’s sell-off to climb higher
• 3 ASX 300 shares rocking new 52-week highs on Thursday
• Why Alliance Aviation, Amcor, Core Lithium, and QBE shares are storming higher

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

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Next week, Webjet Limited (ASX: WEB) shares will be in focus when the online travel agent releases its full-year results.

Ahead of the release, let’s take a look to see what analysts are expecting from the company.

What are analysts expecting from Webjet?

According to a note out of Morgans, its analysts are expecting Webjet to report another loss for the 12 months ended 31 March.

Its analysts are forecasting earnings before interest, tax, depreciation and amortisation (EBITDA) of $15.3 million for FY 2022. This compares to the market consensus estimate of an EBITDA loss of $6.8 million.

While on paper this loss doesn’t look great, it is worth noting that it is a big improvement on the company’s performance during the first half of FY 2022. Furthermore, the improvement comes despite the emergence of the highly disruptive Omicron variant during the period.

Morgans explained:

Our previous FY22 forecast was set before the Omicron variant emerged. Like all travel companies, WEB was materially impacted for ~10 weeks from late December to the end of February. We expect that WEB’s 3Q22 was still stronger than its 2Q22 but to a lesser degree than we thought in November.

We have downgraded FY22 EBITDA forecast due to Omicron. We forecast 2H22 positive EBITDA of A$0.6m, a big improvement from the 1H22 loss of A$15.9m, resulting in an FY22 EBITDA loss of A$15.3m (consensus is -A$6.8m).

Are Webjet shares good value?

Morgans continues to see value in Webjet shares at the current level. Particularly if you zoom out and look at the “recovery year” of FY 2024.

It commented:

Based on our forecasts, WEB is trading on an FY24 recovery year PE of 18.3x, which is at a discount to its five-year average PE (pre-COVID) of 20.6x.

In light of this, the broker has an add rating and $6.60 price target on Webjet’s shares. This implies potential upside of 20% for investors from current levels.

The post Own Webjet shares? Here’s what to expect from next week’s FY22 results appeared first on The Motley Fool Australia.

More reading

• Will Webjet pay a dividend in 2022?
• Are ASX 200 travel shares already fully valued in May?
• These are the 10 most shorted ASX shares
• 2 top ASX growth shares Goldman Sachs rates as buys
• Is the Webjet share price now a buy amid ‘strong’ travel demand?

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

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The S&P/ASX 200 Index (ASX: XJO) is in the red today, but some ASX 200 mining shares are falling harder.

The ASX 200 benchmark index is sliding 1.16% today. However, the S&P/ASX 200 Resources Index (ASX: XJR) is down nearly 3%.

Let’s take a look at how ASX 200 mining shares are faring today.

BHP, Rio, Fortescue fall

Three mining shares suffering on the ASX today are Rio Tinto Limited (ASX: RIO), BHP Group Ltd (ASX: BHP), and Fortescue Metals Group Limited (ASX: FMG).

Rio shares have fallen 3.7%, BHP shares have descended 2.81% while Fortescue shares have slid 2.65%.

China iron ore futures fell 7% on Tuesday to nearly a two-month low, a Reuters report cited by NAB trade stated.

Iron ore futures on the Dalian Commodity Exchange dropped to US$112.80, the lowest level since 16 March. Singapore iron ore futures also dropped 4.2%.

GF Futures analysts quoted by Reuters suggested US rate rises are impacting commodity prices. Analysts added: “That has led to significant decline in commodities prices denominated in US dollars such as iron ore.”

Rio Tinto, BHP, and Fortescue Metals are all iron ore producers. COVID-19 lockdowns in China could also be impacting iron ore prices, my Foolish colleague Brooke reported today.

Meanwhile, Macquarie has suggested BHP shares could command a re-rating following the demerger of its petroleum business.

ASX 200 mining share price recap

The BHP share price has dropped 13% in the past year, while Rio shares have descended nearly 23%. Meanwhile, the Fortescue share price has also plunged 23% over the past 12 months.

For perspective, the benchmark ASX 200 index has shed nearly 2% in a year.

The post Why are ASX 200 mining share prices slipping today? appeared first on The Motley Fool Australia.

More reading

• The Rio Tinto share price has dumped 8% in a week. Is it now cheap?
• The BHP share price is sliding 5% today. Is it time to dig in?
• Fortescue share price dives another 3%, down 12% in a week
• Could Fortescue Future Industries’ green hydrogen help Europe ditch Russian energy?
• Why is the Fortescue share price sinking 6% on Monday?

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.

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The AMP Ltd (ASX: AMP) share price is down 0.7% in afternoon trading.

AMP shares closed yesterday at $1.16 and are currently trading for $1.15.

But even with that dip, analysts at UBS believe the S&P/ASX 200 Index (ASX: XJO) listed wealth management company is 27% overvalued.

What is the UBS price target?

Analysts at the leading broker have retained their sell rating on AMP shares.

They reported that AMP’s funds under management update, released last Thursday, was in line with their expectations. However, AMP’s assets under management were below expectations.

The company’s Australian Wealth Management segment’s assets under management declined to $136.5 million in Q1 2021, down from $142.3 million in Q1 2021. The fall was due to a combination of outflows and investment losses.

Citing concerns over a structural deterioration in the AMP’s core wealth business, UBS analysts believe the AMP share price is lofty. UBS has a 90 cent price target on the company’s shares.

That’s just over 27% below the current price of $1.15.

AMP share price snapshot

Whether AMP shares will retrace 27% in line with the expectations of UBS analysts remains to be seen.

We do know that, so far in 2022, the ASX wealth manager has been handily outperforming.

Year-to-date the AMP share price has gained 15.2%. That compares to a loss of 7.2% posted by the S&P/ASX 200 Index (ASX: XJO).

AMP also pays a 3.1% trailing dividend yield, 90% franked.

The post Why this top broker says the AMP share price is 27% over-valued appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to sell next week
• Could the worst now be over for the AMP share price?
• Top brokers name 3 ASX shares to sell today
• AMP share price rebounds as Woolworths ends $4b superannuation contract
• How is the AMP share price looking in May?

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.

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Many ASX property shares have come under pressure in recent weeks, as concerns over rising interest rates have weighed on investor sentiment.

Unease amid macroeconomic events has led to a sell-off in the sector, with some real estate shares seeing notable losses. While the S&P/ASX 200 Index (ASX: XJO) has slipped 4.2% lower in the past week, the real estate sector is 9.2% worse off.

In light of the situation, we are taking a look at three ASX property shares that are currently debt-heavy. As such, these companies could suffer further falls in the event of additional interest rate hikes.

Debt strapped property shares on the ASX

Before we dive into these companies, it is important to note that high debt levels don’t necessarily mean financial trouble is inevitable. At present, all three have interest payments ‘well covered’ by their earnings before interest and tax (EBIT).

Although, with debt-to-equity ratios above 50%, these ASX property shares are certainly in a more precarious position than they would be if debts were below 40%.

Centuria Office REIT (ASX: COF)

We begin with the least indebted ASX property share on our list, both in percentage and absolute terms. Centuria Office REIT is a real estate investment trust (REIT) operating under the guidance of Centuria Capital Group (ASX: CNI).

As of 31 December 2021, the office real estate-focused REIT recorded $810.22 million worth of debt on its balance sheet. This figure corresponds with a 54.5% debt-to-equity ratio, which is considered high. Even after cash is factored in, the net debt level is around 48%.

Despite this, analysts at Morgans are expecting a distribution of 17 cents per unit in FY23.

Cromwell Property Group (ASX: CMW)

The next ASX property share on our list is the ‘cheapest’ based on price-to-earnings (P/E) ratios. Global real estate fund manager Cromwell Property Group operates across Europe, Singapore, Australia, and New Zealand with a total of $12.1 billion in assets under management.

At the end of last year, Cromwell reportedly held $2.166 billion worth of debt on its balance sheet. This translates to an 80.3% debt-to-equity ratio, which reduces to 76.3% net of cash. Though, it is worth mentioning the group maintained a 22% profit margin during the depths of the pandemic.

Scentre Group (ASX: SCG)

Lastly, the final installment in our debt-burdened ASX property shares is Scentre Group. This real estate company is known for its portfolio consisting of 42 Westfield centres mostly scattered throughout Australia and New Zealand.

Scentre Group is the most debt-loaded out of our three shares, carrying a total of $15.918 billion worth of debt. Doing the sums, this works out to be a debt-to-equity ratio of 83% and 78% net of cash.

Fortunately for shareholders, the group has swung back into profitability after a difficult period in 2020. However, investors are understandably cautious about how higher interest rates might make operations more expensive for ASX-listed property shares like Scentre Group looking forward.

The post Feel the squeeze: 3 ASX property shares with a whole lot of debt appeared first on The Motley Fool Australia.

More reading

• 2 high-yield ASX dividend shares buy-rated by analysts in May
• 3 ASX companies that can raise prices whenever they want

Motley Fool contributor Mitchell Lawler 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.

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Waking up these days, I check my phone through my fingers.

What has the US market done overnight, and what’s in store for the ASX?

This morning when I checked, the S&P 500 – America’s premier share price index – was down 3.2%.

Ouch.

On one hand, it’s the equivalent of ripping off a band-aid: at least we know what to expect, and it’s over quickly.

On the other, it has the potential to ruin a day, even before you get out of bed!

Except it kinda feels like having a band-aid ripped off almost every day, recently, doesn’t it?

Most of us feel a little punch drunk at the moment.

As I write this, the S&P/All Ordinaries Index (ASX: XAO) is down. Again.

It’s draining, even for those of us who’ve been investing – privately and professionally – for well over two decades.

And that’s important.

I have a cast iron stomach for market volatility. I do like the opportunity of buying more shares at lower prices.

But I’m not immune from the financial pain and emotional challenge of falling share prices.

It gets to us all.

There is no vaccination for this one. There’s not even any real treatment.

We just have to grit our teeth and get through it.

The good news?

There’s actually quite a bit.

First, we’ve been here before. Over and over and over. Market history is full of slumps, falls and crashes.

It’s not new. It’ll happen again. As I said, we’ve been here, before.

Second, that market history is pretty compelling: The Australian and US markets have never yet failed to recover from slumps, then go higher.

A guarantee? No. No-one knows the future.

But is it likely that more than a century of market history breaks down in 2022? No, I don’t think so.

Or, to spin the question around: Isn’t it likely that this slump is like the others before it – that we come out to new highs?

I think so, yes.

If that line of argument sounds familiar, that’s because I was using it almost exactly two years ago, as investors worried about the impact of COVID on the ASX and international markets.

I did say we’d been here before, right?

Maybe that’s cold comfort.

After all, a little history lesson doesn’t cover the losses, does it?

And so, I’m going to go back to my favourite ‘picture tells 1,000 words’ investment chart – the 30-year graph, produced by Vanguard, of the returns of various asset classes..

Can you imagine how many times, over the past 30 years, shares have fallen?

Can you imagine how many dire headlines?

How many ‘unprecedented’ events, real and imagined?

How many times investors have worried about what might come next?

Let’s do a quick, abbreviated roll call.

The last three decades started with a recession.

A few years later, we had the Asian Currency Crisis.

Fast forward (but not too far) and the dot.com boom imploded.

Then, soon after, there were the 9/11 attacks.

An investor, then, could have been excused for wondering if our way of life would change forever (sound familiar?).

The Bali bombing came next. Then the second Iraq War.

The GFC started soon after.

I’m going to stop, there.

That list barely covers the first half of the last 30 years.

(Plus, it’s easier to remember what came next, including COVID and the first Australian recession in a long, long time.)

See, if I’d told you, in advance, all of the things that were going to rock the world over those three decades, you might well tell me I was crazy for risking my money in shares.

In anything, really.

You know the punchline, though, right?

A hypothetical $10,000 invested in Australian shares in mid-1991 had turned into more than $160,000 thirty years later.

Not in the absence of real and imagined economic and societal shocks.

But despite those things.

And those shocks had very real impacts on our markets!

The last 30 years isn’t the story of uninterrupted gains, month-in and month-out.

It’s the story of headlines, market booms and slumps (even a crash or three), uncertainty, fear, greed and everything else that goes with it.

And the ASX still managed an average 9.7%, per year, over that period, resulting in a 16 times return.

I can’t be any clearer.

Investing works.

I don’t blame you for worrying.

Losing money is an awful feeling.

Uncertainty is emotionally and sometimes physically draining.

There’s no judgement from me.

But there is an exhortation.

Maybe it’s different this time.

Maybe 2022 is the year that, for the first time in economic history, Australia’s market hits a never-to-be-repeated high point.

But I very much doubt it.

Companies are innovating. Selling products and services.

Finding new ways to grow.

Being more productive.

Improving our lives.

And we get to share in the societal and economic upside – the first by living in this wonderful country, and the second by saving and investing a small portion of our earnings in the share market.

The cost? We have to live through volatility.

The reward?

Well, I reckon Australia’s best days are ahead of us… and I think the same is true for the ASX.

We just have to keep our eyes on the horizon, and stay the course.

It’s time to dig in.

Fool on!

The post The stock market got you down? appeared first on The Motley Fool Australia.

More reading

• Feel the squeeze: 3 ASX property shares with a whole lot of debt
• Why AUB, Block, BrainChip, and Pushpay shares are sinking
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• The Novonix share price just rebounded 13%. Is it a buy?
• Why has the Firefinch share price tumbled 22% in a week?

Motley Fool contributor Scott Phillips 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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has recovered from its intraday lows but remains on course to record yet another sizeable decline. At the time of writing, the benchmark index is down 1.1% to 7,038.1 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

AUB Group Ltd (ASX: AUB)

The AUB share price is down 11.5% to $19.53. This morning the insurance broker announced the successful completion of the institutional component of its $350m capital raising. These funds were raised at $19.50 per new share, which represented an 11.6% discount to its last close price. The proceeds will be used to fund the acquisition of Tysers for $880 million.

Block Inc (ASX: SQ2)

The Block share price is down 8.5% to $122.71. This follows an even greater decline by the payments giant’s NYSE listed shares during overnight trade on Wall Street. Investors were selling Block’s shares amid weakness in the tech sector, a significant drop in the bitcoin price, and the release of several less-than-bullish broker notes.

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is down 13% to $1.05. Investors have been selling this artificial intelligence technology company’s shares despite there being no news out of it. However, its shares did surge higher yesterday amid excitement over an unannounced partnership with Arm. This may have led to some traders taking profit today.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price is down 4.5% to $1.20. This decline may have been driven by investor nerves ahead of the payments company’s full-year results release tomorrow. Pushpay’s results have been a touch underwhelming over the last 18 months, putting significant pressure on its shares. Some investors may be fearing tomorrow’s will be the same.

The post Why AUB, Block, BrainChip, and Pushpay shares are sinking appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares are staging a remarkable recovery today
• Why did the BrainChip share price just crash 17%?
• Here’s why the AUB share price is tumbling 16% today
• Technophobia? Why ASX 200 tech shares are getting hammered again
• Why is the Block share price plunging 11% on Tuesday?

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 Block, Inc. and PUSHPAY FPO NZX. The Motley Fool Australia has positions in and has recommended Block, Inc. and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Austbrokers Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s another day, another fall for the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. The ASX 200 is currently down by another depressing 1.12% and is hovering at just over 7,040 points at the time of writing.

But let’s not let that get us down. Instead, let’s check out the shares that are presently topping the ASX 200’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

South32 Ltd (ASX: S32)

Diversified ASX 200 mining giant South32 is our first share worth checking out today. So far this Tuesday, a hefty 19.8 million South32 shares have been flicked around the markets.

There has been no major news or announcements out of the miner so far today, save for a routine share buyback notice. So it’s probably the company’s ongoing buybacks, as well as the steep 3.5% drop South32 shares have suffered through today, that is responsible for this trading volume we see.

Tabcorp Holdings Limited (ASX: TAH)

A rare appearance by ASX 200 gaming company Tabcorp is next up to have a look at. As it currently stands, a sizeable 21.26 million Tabcorp shares have changed hands. Again, we have no major news out of Tabcorp today. Not even a share buyback notice.

Thus, we can likely attribute this high volume to the pricing movements of the company’s shares. The Tabcorp share price has not escaped from today’s sell-off and is currently down 1.4% at $5.03. That means Tabcorp has now lost close to 5% of its value over the past five trading days.

Pilbara Minerals Ltd (ASX: PLS)

Rounding out our list today is the ASX 200 lithium stock Pilbara Minerals. Pilbara has seen a whopping 31.18 million of its shares bought and sold on the markets thus far this Tuesday. Again, it seems we have a share price move to thank for this high volume, and again, it’s a move in the red. Pilbara has lost a further 1.76% of its value so far today, and is now back at $2.52 a share. That puts this company’s losses over the past month at close to 20%.

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

More reading

• The Novonix share price just rebounded 13%. Is it a buy?
• Pendal share price surges as profit soars 60%
• ASX shares are tumbling, but is it an actual stock market crash?
• 2 ASX shares at ‘appealing’ buy prices right now
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen 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.

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The Novonix Ltd (ASX: NVX) share price is experiencing high levels of volatility.

Earlier today, the battery materials and technology company dropped as much as 11% to around $3.60. However, it has since rebounded 13% from that 52-week low. It’s now 0.25% in the green at $4.07.

The S&P/ASX 200 Index (ASX: XJO) is suffering from elevated selling by investors at the moment. There is a lot of market focus on high inflation and the potential of rising interest rates.

At the time of writing, the ASX 200 is down by 1.14%. But, who knows what is going to happen next?

Is the Novonix share price an opportunity?

While Novonix may have regained the lost ground of the day, it is still down significantly over longer timeframes. Over the past month, Novonix shares have fallen by 35% and since the start of the year, the Novonix share price has fallen by around 60%.

The broker Morgans currently has a rating of ‘hold’ on the business, with a price target of $4.88. That implies a possible rise of around 20%. Morgans noted that the cost of the recent listing onto the NASDAQ of a few million dollars was a one-off, which impacted its earnings. The business started trading on the NASDAQ at the start of February 2022.

Operational progress

One of the recent highlights from the company earlier this year was the closed anode material supply agreement and strategic investment in US-based KORE Power. Novonix will be the exclusive supplier of graphite anode material to KORE Power’s US operations. Novonix agreed to invest US$25 million for an approximate 5% stake in KORE Power. The deliveries will start in 2024.

It is continuing to engage with Samsung SDI and Sanyo and other tier 1 cell and automotive manufacturers for capacity planning for the next production facility.

A technology development agreement was signed with Phillips 66 to leverage both parties’ expertise to collaborate on “the development and optimisation of feedstock and anode processing with the goal of higher performance, lower carbon intensity materials”.

It also said that it’s continuing to engage and progress relationships with multiple international companies for potential technology partnership opportunities and monitor clean energy policies in North America and Europe.

In terms of the battery technology solutions activities, it said it has seen continued strong revenue growth each quarter with expansion of hardware sales and research and development service offerings by adding and growing key strategic accounts.

With the Emera energy storage system project, it is assembling four full-scale pack prototype systems for testing with Emera.

Regarding the cathode synthesis technology activities, it said it has been expanding its internal cathode development team and capabilities.

The post The Novonix share price just rebounded 13%. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Pendal share price surges as profit soars 60%
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Motley Fool contributor Tristan Harrison 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.

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