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The BrainChip Holdings Ltd (ASX: BRN) share price is heading in the right direction at last on Thursday.

In afternoon trade, the artificial intelligence technology company’s shares are up 9% to $1.01.

This will come as a big relief to shareholders as, prior to today, the BrainChip share price was down 35% in the space of a month.

Though, longer term shareholders won’t be too concerned by that. The company’s shares are still up 80% over the last 12 months.

Why is the BrainChip share price charging higher today?

The catalyst for the rise in the BrainChip share price today has been a rally in the tech sector.

This follows a very strong night on the tech-focused Nasdaq index, which rose 3.8% after investors responded positively to the US Federal Reserve’s decision to raise interest rates for the first time in three years.

The general consensus is that the market was pleased with Fed Chair Jerome Powell stating that the US economy is “very strong” and can handle monetary tightening. And given that the prospect of rate increases has long been priced into the market, this positive rhetoric had a big impact on sentiment.

Though, only time will tell where the BrainChip share price goes next. It has been hyping up its technology for some time now. As a result, investors will no doubt now be expecting to see it out there in the world and generating revenues that justify a ~$1.6 billion market capitalisation.

The post Here’s why the BrainChip (ASX:BRN) share price is up 9% today appeared first on The Motley Fool Australia.

More reading

• Why is the BrainChip (ASX:BRN) share price jumping 8% today?
• Brainchip (ASX:BRN) share price sinks 7% as ‘Most successful year in history’ comes at a cost

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 Bruce Jackson.

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The Imagion Biosystems Ltd (ASX: IBX) share price is rebounding strongly after weeks of severe falls. This comes after the biotechnology and nanotechnology company provided an update on its MagSense HER2 breast cancer study.

During mid-afternoon trade, the Imagion share price is 60.47% higher at 6.9 cents.

What did Imagion announce to make its share price soar?

According to its release, Imagion advises it has completed the evaluation of its first five patients enrolled in the MagSense HER2 breast cancer Phase I first-in-human study.

Imagion said the interim data shows no safety issues reported by patients administered with the MagSense HER2 imaging agent. Primary results indicate that the dosage of the injectable was well-tolerated.

Furthermore, Imagion noted that from observation, the imaging agent reached the lymph nodes.

Imagion Biosystems executive chair, Bob Proulx commented:

We are encouraged by these preliminary observations from our investigators. It is very exciting to begin accumulating patient data and see the positive direction of these preliminary results.

We feel the results from the first five patients provide sufficient justification for us to continue the study.

Imagion plans to move forward by ramping up development and clinical studies that would support regulatory submissions.

Imagion said if one of the imaging methods is proven effective the MagSense HER2 test will be commercialised.

The MagSense test will be used as a non-invasive alternative to biopsies for cancer nodal staging.

More on the MagSense HER2 breast cancer study

The program aims to investigate the use of a MagSense imaging agent to increase the accuracy in detecting a patient’s HER2 breast cancer. More specifically, it looks to see whether the patient’s tumour has spread to the lymph nodes.

Traditionally, the current standard of care involves a biopsy or surgical removal of the lymph nodes to confirm metastases. Approximately half of HER2 breast cancer patients have no nodal disease, allowing MagSense to provide non-invasive procedures in detecting the cancer.

Each patient in the study receives an injection of the MagSense nanoparticle imaging agent and undergoes an MRI. While this occurs, MagSense magnetic relaxometry technology assesses a sample of the lymph node.

Imagion is expecting to enrol a total of 15 participants in the phase 1 study. The aim of the program is to determine the safety and tolerability of the MagSense imaging agent. The company is also exploring the nanoparticles’ effectiveness for in vivo detection.

Imagion share price summary

Over the past 12 months, Imagion shares have lost 57%, with falls of 13.75% year to date.

The Imagion share price reached a 52-week low of 4.2 cents yesterday.

Imagion commands a market capitalisation of $48.21 million and has $1.12 billion shares outstanding.

The post The Imagion Biosystems (ASX:IBX) share price just exploded by 60%. Here’s why appeared first on The Motley Fool Australia.

More reading

• This high-yield ASX 200 dividend share is swimming in cash
• Why Ampol, EML, Vulcan, and Zip shares are zooming higher
• Why has the Appen (ASX:APX) share price flamed 8% higher in 2 days?
• How is the AMP (ASX:AMP) share price performing against the financial sector lately?
• 2 ASX All Ords shares jumping more than 15% today

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 Bruce Jackson.

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There are plenty of high-yielding ASX dividend shares on the S&P/ASX 200 Index (ASX: XJO). From the big banks like Commonwealth Bank of Australia (ASX: CBA) to companies like BHP Group Ltd (ASX: BHP) and Telstra Corporation Ltd (ASX: TLS), there is no shortage of shares that currently have a fat yield in front of their name right now. 

But the companies that could be described as ‘swimming in bash’ are far fewer. The shares named above have high yields because they pay out the vast majority of their earnings as dividends, leaving a small amount of cash to reinvest into their businesses. For example, CBA has a payout ratio target of between 70-80% of earnings.       

Not that this is a bad thing. Many of those companies are large, mature businesses that have reached the upper limits of their growth potential. Thus, it makes sense for them to give shareholders most of their profits. 

But what if a company has a decent dividend yield with a lower payout ratio? That means it still offers yield today, but with the potential of far higher yields down the track thanks to a higher level of reinvestment. Brickworks Limited (ASX: BKW) could be an ASX 200 share that does just that. 

Could ASX dividend share Brickworks be swimming in cash?

Brickworks is an ASX stalwart, having been around since 1934. It is primarily in the construction materials business, making bricks (gasp) and other building supplies. But it also has some other ventures, such as a real estate portfolio, and a large investment in Washington H. Soul Pattinson and Co Ltd (ASX: SOL).

On today’s pricing, Brickworks offers a healthy dividend yield of 2.76%, which grosses-up to 3.94% with the company’s typical full franking credits. 

Looking at Brickworks’ last earnings report (it’s full-year earnings delivered last September), and we can see that the company made an underlying earnings per share (EPS) of $1.89 over FY2021. And yet the company paid out a total of 61 cents per share in dividends. That represents a payout ratio of just under 32.3%. 

That means that Brickworks is effectively keeping almost 68% of its earnings inside the business, available for debt financing, reinvestment or whatever else the company sees fit to use the cash for.

So compared to a business like CBA, we could indeed say that Brickworks is ‘swimming in cash’. All while funding a decent dividend right now.

At the current Brickworks share price, this ASX 200 dividend share has a market capitalisation of $3.35 billion. 

The post This high-yield ASX 200 dividend share is swimming in cash appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX dividend shares that have been sold off
• Top ASX dividend shares to buy in March
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• 3 reasons why Soul Pattinson (ASX:SOL) is a strong ASX dividend share idea
• Here’s why the Brickworks (ASX:BKW) share price has loads of growth potential: expert

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks, Telstra Corporation Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain for the second day in a row. At the time of writing, the benchmark index is up 1.45% to 7,279.8 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are zooming higher:

Ampol Ltd (ASX: ALD)

The Ampol share price is up 4% to $29.84. Investors have been buying the fuel retailer’s shares after its proposed acquisition of Z Energy Ltd (ASX: ZEL) was given a boost. This morning Ampol revealed that the New Zealand Commerce Commission has provided clearance for the acquisition. This is on the proviso that Ampol fully divests its Gull business in New Zealand within nine months of completing the transaction.

EML Payments Ltd (ASX: EML)

The EML share price is up 7% to $2.52. As well as getting a boost from a tech rebound today, investors have been buying this payments company’s shares following an announcement late yesterday afternoon. That announcement reveals that EML has entered the Employee Benefits Market (EBM) in Europe through a multi-year agreement with Up Spain. The EBM is worth over A$88 billion globally.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is up 8% to $9.65. This follows a strong rise by a number of lithium miners today. In addition, as I noted here earlier, Vulcan’s shares are rated as a buy by the team at Alster Research. Its analysts have a massive $20.00 price target on them, which is more than double where its shares trade today.

Zip Co Ltd (ASX: Z1P)

The Zip share price is up over 10% to $1.58. Investors have been buying this buy now pay later (BNPL) provider’s shares following big rebound in the tech sector. This follows a strong night of trade on the tech focused Nasdaq index after investors responded positively to the US Federal Reserve’s rate hike.

The post Why Ampol, EML, Vulcan, and Zip shares are zooming higher appeared first on The Motley Fool Australia.

More reading

• Why the Zip share price is surging 12% higher today
• Why the Ampol (ASX:ALD) share price is outperforming the energy sector today
• ASX 200 (ASX:XJO) midday update: Block and Zip shoot higher, Ampol’s acquisition boost
• ASX 200 shares open with a bang following US interest rate rise
• Renewable energy shift ‘is about to accelerate’ making Vulcan (ASX:VUL) shares a buy: Broker

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. owns and has recommended EML Payments and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Appen Ltd (ASX: APX) are surging higher again today and are currently trading 3% in the green.

The jump marks an approximate 8% gain Appen shareholders have enjoyed over the past two days of trading, despite no market-sensitive news from the company.

ASX tech shares have begun to stage a short-term rally, as confidence reappears in the sector once again after leaving the party in early 2022.

At the time of writing, the Appen share price is $7.245, up 3.21% on the day.

Why is the Appen share price strengthening?

Shares in Appen are rising today amid sector strengths in ASX tech names on Thursday. The S&P/ASX All Technology Index (ASX: XTX) is 3.73% in the green after faltering for much of 2022.

But as confirmation on the trajectory of interest rates was provided by US Federal Reserve Chair Jerome Powell last night, ASX tech shares are alive once more. The Federal Reserve lifted interest rates by 25 basis points, the first rise since 2018.

It appears the market has digested the news and is happy with the clarity, especially on themes like inflation.

As a result, global tech baskets are starting to resurface from their time in the red, although it’s not entirely clear just how long the joy will last.

Elsewhere, the tech-biased Nasdaq Composite Index (NASDAQ: .IXIC) spiked almost 4% overnight. Additionally, tech exchange-traded funds (ETFs) have also popped, with the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) up 4% today.

Keep in mind an increase in base rates could potentially be a negative to the valuations of tech shares, especially if the hikes spill over into the bond markets.

Nevertheless, moves of the wider sector are important for Appen, seeing as its share price closely tracks the index, as shown over the past three months below.

Not only that, Appen’s executives are buying up more of the company’s shares – a bullish signal in the eyes of many.

The premise is that, if a company’s c-suite starts buying shares, they are laying down a big vote of confidence in the future prospects of operations.

Appen’s chair, Richard Freudenstein, and CEO Mark Brayan each loaded up on shares in the company’s register recently. The former added another 14,795 shares whereas the company’s chief acquired 106,666 shares directly.

Despite the frenzy from investors these past two days, analysts at Macquarie are still bearish on the Appen share price and urge its clients to sell after valuing the company at just $5.70 per share.

At the time of writing this suggests a downside potential of 21%.

Appen share price snapshot

In the last 12 months, the Appen share price has fallen around 60%. It is also down 35% this year to date.

Over the past month, its shares are down by almost 15%.

The post Why has the Appen (ASX:APX) share price flamed 8% higher in 2 days? appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares open with a bang following US interest rate rise
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to sell next week
• Here’s why the Appen (ASX:APX) share price is up 6% today
• Tech-tonic shift? ASX tech shares rally following Nasdaq’s lead

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price has failed to outperform the ASX in recent times, trading at near multi-year lows.

After reporting a mixed full-year result last month, the financial services company is struggling with positive investor sentiment.

At the time of writing, AMP shares are fetching for 96.5 cents, up 2.66%.

In the past month, the company’s shares have fallen 4.4%.

What’s happened to AMP recently?

Investors took the AMP share price to levels stretching since early January this year. This came from the company delivering its financial scorecard for FY21 on 10 February.

AMP reported that its Australian wealth management total assets under management (AUM) increased to $134 billion, up 8% on FY20. This came off the back of improved investment markets and a reduction in net cash outflows.

In AMP’s New Zealand wealth management portfolio, AUM decreased to $12.2 billion, down $200 million year-on-year. The result was driven by conclusion of its term as KiwiSaver default provider, contributing to a net outflow of $600 million.

Nonetheless, AMP recorded a statutory net profit after tax (NPAT) loss of $252 million, compared to a $177 million profit in FY20. Management stated that the impact was primarily due to previously announced impairment charges, mainly non-cash write-downs

The demerger program is scheduled for competition by the middle of FY22. This will see the transition of MAG from AMP Capital to AMP Australia, creating a superannuation and investment platform business.

In an effort to maintain a conservative approach to capital management, and support business transformation, no final dividend was declared for FY21.

The board stated that its capital management strategy and payment of dividends will be reviewed following the demerger.

How does the AMP share price compare to the financial sector?

Over the last 12 months, the AMP share price has moved 32% lower, with year to date down by around 4%. The company’s shares hit a multi-decade low of 85.5 cents in late January, before moving in circles.

In contrast, the S&P/ASX 200 Financials Index (ASX: XFJ) has gained 9.5% from this time last year and is up 2.5% year to date. The sector also registered a 52-week high of 6,956.4 points in late October.

Undoubtedly, AMP shares are lagging behind the Financial Index which has continued to accelerate since March 2020.

Based on today’s price, AMP commands a market capitalisation of roughly $3.18 billion, with approximately 3.27 billion shares on issue.

The post How is the AMP (ASX:AMP) share price performing against the financial sector lately? appeared first on The Motley Fool Australia.

More reading

• AMP (ASX:AMP) share price falters amid ‘important step forward’
• Has the AMP (ASX:AMP) dividend gone the way of the dodo?
• The AMP (ASX:AMP) share price has dumped 16% in under 4 weeks. What’s happening?
• Why did the AMP (ASX:AMP) share price leap 8% in February?
• AMP (ASX:AMP) share price lifts as new suitor for capital arm emerges

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 Bruce Jackson.

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The All Ordinaries Index (ASX: XAO) is enjoying another day of big gains today, up 1.5% at the time of writing.

But 2 ASX All Ords shares are running far hotter than that.

This ASX All Ords share is up 18%

Online luxury goods retailer Cettire Ltd (ASX: CTT) is soaring today, hitting an intraday high of $1.78, up 19.5%.

Cettire offers some 200,000 products on its website, representing more than 1,700 high-end brands.

We’ve heard no price-sensitive news out of Cettire since 7 February, when the company announced its China launch.

Cettire shares closed yesterday at $1.49 and are currently trading for $1.67. This is a welcome turnaround for ASX investors who have watched this All Ords share slide 54% over the past 6 months.

That slide continued despite some strong half-year results from Cettire, reported on 3 February. Those results included a 181% lift in sales revenue compared to the prior corresponding period, with sales reaching $114 million.

Also charging higher…

Our second ASX All Ords share leaping today is the cloud platform service provider, Dubber Corp Ltd (ASX: DUB).

The Dubber share price hit an intraday high of $1.38 in earlier trading, up 16%.

Dubber shares closed yesterday at $1.19 and are currently trading for $1.34.

As with Cettire, Dubber has also taken a beating over the past 6 months. Its shares are down 66% despite today’s big lift.

With no price-sensitive news out, Dubber looks to be benefitting from improved sentiment in the tech sector. This has sent the S&P/ASX All Technology Index (ASX: XTX) 3.75% higher today.

The post 2 ASX All Ords shares jumping more than 15% today appeared first on The Motley Fool Australia.

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• Why did the Cobalt Blue (ASX:COB) share price rocket 30% in a week?
• Why has this ASX share you’ve never heard of soared 30% already this month?
• What a Boss! Why the Boss Energy (ASX:BOE) share price is soaring 13% today
• Why did the Race Oncology (ASX:RAC) share price drop 10% today?
• Beaten-up: Are these 2 top ASX growth shares turnaround buys?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cettire Limited and Dubber Corporation. The Motley Fool Australia owns and has recommended Dubber Corporation. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is climbing almost 4% today amid a significant increase in the price of iron ore.

At the time of writing, Fortescue shares are swapping hands for $18.045 apiece, a gain of 3.71%.

Fortescue is one of the world’s largest iron ore miners alongside BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). Their share prices are up 1.08% and 1.71% respectively at the time of writing.

What happened to the iron ore price?

Fortescue generates its profit by mining and selling iron ore. An increase in the iron ore price can be a boost to Fortescue’s net profit after tax (NPAT).

In overnight markets, the spot iron ore price increased by 7.3% to US$145.45 per tonne. In dollar terms, it was an increase of US$9.90 per tonne.

The iron ore price has continued to be volatile amid the Russian invasion of Ukraine and China locking down certain areas of the country to try to control the spread of COVID-19.

Which way is the iron ore price expected to go next?

Commodity prices are challenging to predict. But some analysts have a go.

China is a significant buyer of a lot of Australia’s iron, so a slowdown of purchasing can have a sizeable impact on the iron ore price.

The broker Citi recently said the iron ore price could drop to US$70 per tonne in the long-term, though this was an upgrade from the expectation of US$60 per tonne.

In the next couple of years, Citi thinks the iron ore price may reduce to US$80 per tonne. But Citi admitted it’s possible it could be higher than that.

Other brokers, such as UBS, also have estimated the iron ore price will drop in the coming years.

Is the Fortescue share price an opportunity?

A lot of brokers believe the Fortescue share price is overvalued. Citi, UBS, and Morgan Stanley all think the business is a ‘sell’.

Morgan Stanley has a particularly negative outlook for the Fortescue share price, with a price target of $13. That implies a possible decline of close to 30% over the next year.

Citi has a price target of $16 on the business, suggesting a drop of around 11%.

Brokers think Fortescue looks expensive compared to peers such as BHP and Rio Tinto. The discount applied to Fortescue’s lower grade iron ore has increased compared to the middle of 2021.

Some analysts, such as Credit Suisse, also want more information and disclosure about Fortescue Future Industries (FFI).

FFI continues to make progress

Fortescue wants FFI to become one of the world leaders of green hydrogen production with a global portfolio of projects. FFI’s goal is to produce 15 million tonnes of green hydrogen per year by 2030 for the global market.

It has hired some high-profile individuals to drive the business forward.

The latest appointment is the Reserve Bank of Australia Deputy Governor Dr Guy Debelle who will become FFI’s chief financial officer (CFO).

Fortescue said Dr Debelle will help facilitate the green energy goals, while also delivering value for shareholders and economic benefits for the communities where FFI operates.

In terms of decarbonisation, one of the latest developments from Fortescue is the partnership with Airbus to create a plane by 2035 that runs on green hydrogen.

Fortescue share price snapshot

The Fortescue share price is swimming in a sea of red over all recent timelines.

It is down 11.5% over the past year, 6% this year to date, almost 15% over the past month, and 4% over the past week.

The post Fortescue (ASX:FMG) share price jumps as iron ore price soars appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 mining shares having such a dire day?
• Why is the Fortescue Metals (ASX:FMG) share price sliding 5% today?
• Cash machines: 6 ASX 200 shares with the highest dividend yields right now
• What’s going on with Fortescue (ASX:FMG), green hydrogen and the Egyptian prime minister?
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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 Bruce Jackson.

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ASX biotech shares have, as a whole, had a remarkably poor run over the last 6 months.

Here’s what we mean.

Over the past 6 months, the All Ordinaries Index (ASX: XAO) is down 2.2%. Not what you’d like to see. But not close to gut wrenching either.

Now let’s looks at some large-cap and small-cap ASX biotech shares.

First up, industry heavy weight CSL Limited (ASX: CSL), with a market cap of $129 billion, is down 13% over 6 months.

Meanwhile the Imugene Ltd (ASX: IMU) share price has lost 41%, while fellow ASX biotech share Immutep Ltd (ASX: IMM) is down 33% over that same time.

Moving to the smaller, and more speculative end of the spectrum, Avecho Biotechnology Ltd (ASX: AVE) shares are down 40% in 6 months; the Volpara Health Technologies Ltd (ASX: VHT) share price has lost 43%; and Chimeric Therapeutics Ltd (ASX: CHM) shares are down 55%.

Then there’s EBR Systems Inc (ASX: EBR). EBR Systems only listed on the ASX on 24 November last year. While it’s up 163% since listing, most all of those gains came on the first days of trading. Since 25 November, shares in EBR system are down 32%.

And it’s not just ASX biotech shares under pressure.

Over in the United States the Nasdaq Biotechnology Index is down 25% in 6 months.

What’s next for ASX biotech shares?

Chimeric CEO Jennifer Chow said she’s hopeful that a few things could turn the cycle around.

According to Chow (quoted by The Australian Financial Review):

Obviously, the world settling a bit. But, for biotech, a lot of development was slowed because of COVID-19 … it had an impact on clinical trial registrations … but patients are getting back to centres and hospitals are focused on clinical trials again. There was also a slowing down in M&A at the end of last year … and that’s starting to pick up again.

Matt McNamara is the chief investment officer at Horizon 3. With a 3-to-5-year investment horizon, the recent sell-off isn’t keeping him awake:

I look at the positions we hold and none have changed in terms of their investment thesis. I don’t see a problem with any of the companies … We’re patient investors and ride out the bumps. I think there’s good buying at the moment.

Horizon holds ASX biotech shares EBR Systems, Volpara Health and Avecho Biotechnology. McNamara said investors should look at “the prospects of the market they’re breaking into, the experience of the management team, and if they have the skills around the board.”

Why the small-cap space may be in for more pain yet

Rory Hunter, portfolio manager at SG Hiscock draws a sharp distinction between well-established ASX biotech shares and microcap newcomers.

According to Hunter (quoted by the AFR):

We’ve gone from this euphoria phase to the opposite end of the spectrum, and that’s why there’s been so much value destruction. You’re going to see a flight to quality. People have lost a lot of money in some of these companies that came to market last year. It’ll remain really challenging for quite some time.

We are looking to redeploy capital into companies that are already in the commercialisation phase. When we get a view on the better market conditions, we’ll also look at those business that are in phase three trials … and have significant addressable markets.

The post Do ASX biotech shares offer ‘good buying’ after the sell-off? Experts weigh in appeared first on The Motley Fool Australia.

More reading

• Is the CSL share price heading back over $300 in 2022?
• 3 quality blue chip ASX 200 shares analysts are tipping as buys
• Imugene (ASX:IMU) share price lifts on major collaboration announcement
• Why CSL (ASX: CSL) shares climbed on Monday
• Why CSL, Dicker Data, Elders, and Virtus Health shares are charging higher

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Zip Co Ltd (ASX: Z1P) share price is giving shareholders a reason to smile at long last on Thursday.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are the best performers on the ASX 200 index.

At the time of writing, the Zip share price is up over 12% to $1.62.

Why is the Zip share price charging higher?

Investors have been bidding the Zip share price higher today amid a strong rally in the tech sector.

It isn’t just Zip that is on form, the S&P/ASX All Technology index is up a massive 4.2% at the time of writing. This is more than double the gain being made by the ASX 200 index.

What’s going on?

The catalyst for this has been a very strong night of trade on Wall Street’s tech focused Nasdaq index. It rose a sizeable 3.8% after investors responded positively to the US Federal Reserve’s decision to raise interest rates for the first time in three years.

And while concerns over rate rises have weighed down shares in recent months, the rhetoric out of the central bank appears to have boosted sentiment.

Bloomberg reports that Fed Chair Jerome Powell said the US economy is “very strong” and can handle monetary tightening.

This has gone down well with investors on both sides of the Pacific and given the Zip share price a much-needed boost today.

The post Why the Zip share price is surging 12% higher today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Block and Zip shoot higher, Ampol’s acquisition boost
• ASX 200 shares open with a bang following US interest rate rise
• Here’s why the Zip share price is surging 5% higher today
• Why Chalice Mining, Santos, Yancoal, and Zip shares are dropping
• Zip share price down 6% to another 52-week low

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. owns and has recommended ZIPCOLTD 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 Bruce Jackson.

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