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ASX gold shares certainly shone brightly in February.

In fact, you’ve got to go back to April 2020 to see ASX gold shares deliver stronger monthly gains.

And that, as you’ll recall, was the month when most all stocks came roaring back following the previous month’s pandemic-fuelled panic selling.

How well did ASX gold shares perform in February?

The best answer to that question lies in the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

From the closing bell on 31 January through to the closing bell on 28 February, the ASX gold index gained a whopping 18.2%.

To put that into some context, the All Ordinaries Index (ASX: XAO) was only up 0.8% in that same period.

What drove the outperformance?

Investors began snapping up ASX gold shares over the course of the month as the price of the bullion they explore for and mine from the earth surged.

The yellow metal kicked off February trading at US$1,801 (AU$2,467) per troy ounce. Gold finished the month at US$1,914 per ounce, up 6.3%, according to data from Bloomberg.

Gold prices had already been trending upwards for most of 2022, as inflation fears began to tick up around the globe. Gold is classically seen as a hedge in times of fast rising costs.

But February saw gold prices really lift as Russian forces began to mass around Ukraine. When Russia invaded its neighbour towards the end of the month, investors seeking haven assets sent the price of gold higher.

Some leading ASX gold shares

Here’s how some leading Aussie gold producers performed in February.

S&P/ASX 200 Index (ASX: XJO) mining giant Newcrest Mining Ltd (ASX: NCM) saw its shares surge 19.1%.

Fellow ASX 200 gold miner, Evolution Mining Ltd (ASX:EVN), also boomed. The Evolution share price gained 22% for the month.

Sticking with the big players, the Northern Star Resources Ltd (ASX: NST) share price rocketed an impressive 24.4% in February.

Moving to the smaller end of the mining spectrum, with a market cap of $228 million, Dacian Gold Ltd (ASX: DCN) shares lifted 16.7%.

And topping the best returns for ASX gold shares in February is Alkane Resources Limited (ASX: ALK). The gold miner saw its share price leap 26.8% last month.

The post Here’s why ASX gold shares just had their best month in 2 years appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Is Bitcoin or gold a better buy for these uncertain times?
• 5 ASX 200 shares trading ex-dividend today
• Newcrest (ASX:NCM) shares rise following Pretivm takeover update
• 5 things to watch on the ASX 200 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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having a very pleasant day of trading so far today. The ASX 200 is currently up a healthy 1.03%. But that’s nothing compared to the Block Inc CDI (ASX: SQ2) share price.

Block shares are up an extremely pleasing 13.03% at $175.54 a share. That puts the US-based payments company formerly known as Square at close to a 35% gain over just the past 5 days alone. So what’s behind this extraordinary rise this Tuesday?

Well, it’s not entirely clear. Block did report its full-year financial results last week, which seems to have given the company a bit of a turbocharge. As my Fool colleague Bernd covered at the time, Block recorded a 62% year-on-year rise in gross profits to $4.42 billion. That came in addition to a 104% increase in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $1.01 billion.

These results saw the Block share price rise a whopping 39% at one point on the day they were released. This enthusiasm has continued to hold ever since.

Block shares square up

But we do have some more recent news that could be affecting today’s big rise too. According to NABtrade, Block’s US shares have received some positive attention from some brokers across the Pacific. The site reports that BMO Capital Markets has upgraded Block Inc (NYSE: SQ) shares to ‘outperform’.

The broker likes Block’s acquisition of Afterpay as well as the strength of its flagship Cash App service: “We look forward to guidance regarding synergies expected from SQ’s recently-completed acquisition of Afterpay, and the benefits of connecting SQ’s merchant-facing Square business to its consumer-facing Cash App business.”

BMO has given Block’s US shares a price target of US$159, which is well above the company’s last price of US$127.50.

So this optimism for Block might be responsible for the goodwill flowing into block’s ASX listing that we are seeing today. Either way, it is certainly a dramatic turnaround for a company that, until just a few days ago, was down close to 35% in 2022 alone. Its year-to-date losses now stand at just 0.6%

At the current Block share price, this payments company has a market capitalisation of US$73.96 billion.

The post Here’s why the Block (ASX:SQ2) share price is surging 13% today appeared first on The Motley Fool Australia.

More reading

• 3 ASX tech shares going gangbusters today
• Why Adbri, Appen, Block, and Life360 shares are storming higher
• Back on the horse! ASX tech shares stage stunning comeback following sell-off
• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks
• Block (ASX:SQ2) share price rockets 39% today as profits soar

Motley Fool contributor Sebastian Bowen owns Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. 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 Starpharma Holdings Ltd (ASX: SPL) are cruising higher today and now trade 4% in the green at 92 cents apiece.

Investors are responding positively to a company announcement regarding its lead drug candidate Viraleze in the fight against the Omicron COVID-19 variant.

What did Starpharma announce?

Starpharma advised that the antiviral agent in its Viraleze antiviral nasal spray label, “SPL7013”, was shown to achieve “the maximal possible reduction of virus infectivity against the Omicron variant of COVID-19, in laboratory testing.”

Viraleze is Starpharma’s broad-spectrum antiviral nasal spray. SPL7013, being the active ingredient, has in fact been shown to have “potent antiviral and virucidal activity in multiple respiratory viruses”. It can now add COVID-19 to its list.

For reference, a ‘virucidal’ agent is able to deactivate and/or destroy inactive viruses in human tissues.

The studies Starpharma mention today showed that SPL7013 was effective in reducing impacts of the Omicron variant in greater effect versus other agents used in competing antiviral nasal sprays, including rival compounds iota-carrageenan and heparin.

“SPL7013 was approximately 30 times more potent than iota-carrageenan against the Omicron variant, which is currently in multiple marketed nasal sprays, and 70 times more potent than heparin, which is currently being contemplated as a nasal spray”, the company said.

In another plus, the formulation was shown to be effective in reducing viral activity of the other COVID-19 variants – the so called ‘variants of concern’, the release notes.

What’s more, due to its mechanism of action, the SPL7013 formula might even be immune itself to mutations of the virus’ ‘spike protein’ – the keystone feature that allows COVID-19 to infiltrate our cells.

In contrast, the mRNA version of COVID-19 vaccines utilises a synthetic version of the spike protein to induce an immune response in humans.

Speaking on the results, Dr Jackie Fairley, CEO of Starpharma, mentioned:

Starpharma is pleased to see that SPL7013 is virucidal and achieved >99.5% reduction of infectious virus in the Omicron variant. SPL7013 has now demonstrated impressive performance against all five ‘Variants of Concern’ tested, including Delta, Alpha, Beta, Gamma, and now also Omicron. The high level of activity against Omicron is entirely consistent with previous data for SPL7013, which has shown antiviral and virucidal activity in multiple viruses. This new data further illustrates SPL7013’s breadth of activity and the potential real-world
benefits of Viraleze.

Starpharma share price

In the last 12 months, the Starpharma share price has collapsed over 57% and is down 31% this year to date. During the past month of trading, shares have collapsed by another 15%. As such, Starpharma is trailing the broad healthcare index in 2022, as shown below.

The post Starpharma (ASX:SPL) share price lifts on Omicron study results appeared first on The Motley Fool Australia.

More reading

• Not enough: Starpharma (ASX:SPH) share price plunges despite 200% revenue growth

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 Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is edging higher on Tuesday afternoon.

At the time of writing, the pizza chain operator’s shares are up 0.88% to $79.645, having hit $81.19 earlier in the day.

Despite treading higher today, it’s worth noting the company’s shares are down 23% in a month.

What’s the deal with Domino’s shares?

With the company’s half-year results delivered, investors are eyeing Domino’s shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor does not buy Domino’s shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend. However, this has not been the case for the Domino’s share price today.

A catalyst for this could be the strong surge across the benchmark S&P/ASX 200 Index (ASX: XJO), which is currently up 1.13% to 7,128.7 points.

What does this mean for Domino’s shareholders?

For those eligible for Domino’s dividend, shareholders will receive a payment of 88.4 cents per share on 17 March 2022. The dividend is 70% franked, which means investors will receive some tax credits from this.

The total dividend amount to be paid from Domino’s is around $76.5 million.

Are Domino’s shares a buy now?

Following the company’s financial scorecard last month, a number of brokers reassessed their outlook on the Domino’s share price.

Analysts at UBS slashed their price target by 8.3% to $110.00 apiece. Based on the current share price, this implies a potential upside of 38%.

Furthermore, Morgans upgraded its view on Domino’s to “add” from “hold”, also reducing its price target by 15% to $115.00.

Lastly, Macquarie cut its rating on Domino’s by a sizeable 33% to $88.70 per share. It appears the broker believes the pizza chain operator’s shares are almost fully valued.

Domino’s share price summary

Since the beginning of 2022, the Domino’s share price has fallen by more than 30%. Its current price of $79.645 is in sharp contrast to when it touched an all-time high of $167.15 in September 2021.

On valuation grounds, Domino’s commands a market capitalisation of roughly $6.96 billion, with approximately 86.55 million shares outstanding.

The post What’s going on with the Domino’s (ASX:DMP) share price today? appeared first on The Motley Fool Australia.

More reading

• Why this top broker just downgraded Domino’s (ASX:DMP) shares
• 2 ASX shares now at an awesome price for buying: expert
• Buy these ASX shares following the market correction: experts
• These were the worst performing ASX 200 shares last week
• ‘Attractive entry point’: Broker upgrades Domino’s (ASX:DMP) shares

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 recommended Dominos Pizza Enterprises Limited and 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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You’ve probably heard of the Fortescue Metals Group Ltd (ASX: FMG) green division. It’s called Fortescue Future Industries (FFI).

FFI was created to take a world leading position in green energy and sustainable technology markets. The division has a sharp focus on sectors where carbon reduction is particularly onerous.

According to Fortescue’s half year report, released on 16 February, FFI is “investing to create a global portfolio of green energy projects to supply 15 million tonnes per year of renewable green hydrogen by 2030″.

What is green hydrogen?

Good question!

In a nutshell, the technology used splits the hydrogen and oxygen that make up the water molecule. Importantly, it uses renewable energy sources for the process.

The hydrogen can then be bound with nitrogen to create ammonia. This can, in turn, be transported to domestic and international markets and used as a clean energy source.

How is Fortescue Future Industries funded?

FFI’s is funded via a 10% slice of Fortescue’s net profit after tax (NPAT).

The S&P/ASX 200 Index (ASX: XJO) mining giant forecasts FFI’s expenditure for the full 2022 financial year will fall in the range of US$400 to US$600 million. That comprises US$100 to US$200 million of capital expenditure and US$300 to US$400 million of operating expenditure.

Are Fortescue’s green hydrogen plans realistic?

The Australian quotes sources who indicate FFI’s initial green energy project target list could cost in the range of $US650 billion to $US1 trillion:

Analysis last year by The Australian of publicly available information suggested the cost of building just 13 of the projects identified by FFI as development candidates would be up to $US148.5 billion. Since then, FFI has added another seven hydropower and 11 geothermal energy projects in PNG alone, plus new projects in Canada and New Zealand.

Fortescue’s founder Andrew Forrest admits the cost is “very high”, though he doesn’t believe it will hit the higher end of the quoted range.

Forrest has dismissed concerns over how the projects can be funded. He is confident that there’s a lot of money waiting to invest in just these types of projects.

Commenting on JPMorgan Chase’s CEO, Forrest said, “I do not want to face Jamie Dimon again, and be told, ‘I don’t have any issue with the capital, Andrew. We’ve got $US3.5 trillion to devote to this – in cash; dry gunpowder. What I don’t have is the projects.’”

The currently soaring energy prices, which have seen crude oil top US$100 per barrel, certainly make the projects more profitable. But Forrest is confident Fortescue’s green hydrogen can be competitive so long as crude trades above US$40 per barrel.

When all is said and done Fortescue Future Industries won’t own the renewable energy projects it’s planning to build across the globe. Instead these will be sold to a range of investors.

According to Forrest, “They can buy the wind farm, or they’ll buy the solar farm or the hydro, whatever, they’ll buy that off you. What they want is these long-term renewable energy investments to give them a yield for 30 to 40 years plus.”

As for the underlying motivations, Forrest said, “The reality is you’ve got to get the big polluting companies, which society relies on, to stop polluting. And then society can rely on them and not feel terrible about it.”

However, as The Australian notes, with its current small scale production levels, it costs Fortescue Future Industries roughly US$5 per kilogram to produce green hydrogen. Those costs need to come down by more than half, to some US$2/kg.

And there’s no ready playbook to fall back on here.

“You’re designing solutions as you go. This is a world which hasn’t existed before. So, you’re creating solutions and you’re inventing as you go,” said Forrest.

So, is he dreamin’?

With Fortescue’s green hydrogen ambitions progressing on a number of fronts in 2022, investors should have a better grasp of that answer by year’s end.

The post Tell him he’s dreamin’: Are the Fortescue (ASX:FMG) green hydrogen plans realistic? appeared first on The Motley Fool Australia.

More reading

• Why Betmakers, Fortescue, Suncorp, and Tyro shares are falling
• 5 ASX 200 shares trading ex-dividend today
• Why is the Fortescue (ASX:FMG) share price falling 5% today?
• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher
• Could Fortescue (ASX:FMG) be about to announce its next major green initiative?

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 Qantas Airways Limited (ASX: QAN) share price is ascending this week amid rising demand for travel.

Qantas shares are currently trading at $5.19, a 2.37% gain for the day. For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.44%.

Let’s take a look at what might be sending the Qantas share price to the skies.

Travel demand surges

Qantas shares have taken off since the start of the week, jumping 2.57% since market close on Friday. And on Sunday, the airline’s CEO Alan Joyce provided hope travel demand is returning.

Speaking to Sky Business Weekend, Joyce predicted domestic flight schedules would recover to pre-COVID-19 levels by the middle of the year. He said:

I don’t think there is anything that is going to derail the domestic recovery and even the international recovery. We are seeing huge demand coming in, particularly leisure. We are seeing corporate, the SME market coming back.

Qantas reported its underlying loss had increased by 26.6% in its H1 FY22 results last week, while revenue surged 31.9% on the previous corresponding half. The Qantas share price fell more than 5% on the day the results were announced.

As my Foolish colleague Bernd reported, COVID-19 travel restrictions continued to impact Qantas operations. However, the airline is confident its recovery program can deliver $900 million in annualised cost benefits by the end of FY22.

Ukraine-Russia crisis

Meanwhile, Qantas has also altered its Darwin to London flight path to avoid flying over the northern part of Russia. This flights will now travel over the middle east and southern Europe, increasing the flight time by one hour.

Joyce told Sky when international borders open in different countries Qantas sees a “boom”, but with Ukraine overlaid on it, “there is a few moving parts”. He said:

We don’t know how long it’s going to last, or how big it could be, or whether its going to be a fizzle. You know, the market I think, is uncertain about how this is going to play out.

The bigger consequence for us is fuel price. Fuel price could go over $100, it’s getting close to that, that has a big impact on airlines in particular, it’s a big input cost. We are very well hedged.

Qantas share price

The Qantas share price has ascended 3.80% in the past 52 weeks, while it is up 3.59% year to date. Qantas shares have also jumped 8.6% over the past month.

For perspective, the benchmark ASX index has returned around 5% over the past year.

The company has a market capitalisation of about $9.7 billion

The post Qantas (ASX:QAN) share price enjoying green start to the week as Joyce says ‘we’re seeing huge demand’ appeared first on The Motley Fool Australia.

More reading

• Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
• Russia invades Ukraine and the ASX tanks. Scott Phillips on Nine’s Late News
• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• ASX wipes out $73 billion as Russia invades Ukraine
• Qantas (ASX:QAN) share price nosedives as losses mount

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 Sezzle Inc (ASX: SZL) share price has returned from its trading halt and dropped into the red.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are down 3% to $1.70.

Why was the Sezzle share price in a trading halt?

The Sezzle share price was placed in a trading halt yesterday after the BNPL provider received a takeover proposal from rival Zip Co Limited (ASX: Z1P).

As we have previously covered here, Sezzle has agreed to an all-scrip deal that will see shareholders receive 0.98 Zip shares for every Sezzle share owned.

Based on the Zip share price at the time of the offer, this implied a price of $2.1658 per Sezzle share, which represented a premium of almost 22% to Sezzle’s last close price and valued the company at $491 million.

Sezzle’s Co-Founder, Executive Chairman, and CEO, Charlie Youakim, spoke very positively about the agreement.

He said: “We are extremely excited about the opportunity to create a leader in the financial services industry by combining with Zip and its management team led by Larry [Diamond] and Pete [Gray]. Paul [Paradis] and I believe it will be a great cultural fit for both our organisations and we’re excited to be part of Zip’s next chapter. I believe the transaction will position us to win in the U.S. and globally.”

So why are its shares falling?

When a company receives a takeover proposal, you’ll normally see its shares shoot higher. But this hasn’t happened with the Sezzle share price today, which may have caught some investors off guard.

As you may recall with the Block Inc (ASX: SQ2) acquisition of Afterpay, when a takeover proposal is an all-scrip affair, the value of the proposal rises and falls with the suitor’s share price.

So, with the Zip share price tumbling notably lower today following the completion of a ~$150 million institutional placement, the deal is already becoming less attractive to shareholders.

At present, the Zip share price is fetching $2.00. Based on its offer of 0.98 shares per Sezzle share, this now values the transaction at $1.96 per share, instead of ~$2.17 per share previously.

And while this is still meaningfully higher than the current Sezzle share price of $1.70, it appears that the market doesn’t have a lot of confidence that Zip’s shares have found a bottom just yet. Furthermore, both sets of shareholders have to approve the proposal, so it’s not quite a done deal at this stage. As a result, some form of discount has to be applied to reflect this risk.

The post Why is the Sezzle (ASX:SZL) share price falling following Zip’s takeover offer? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• Why is the Zip (ASX:Z1P) share price sinking 11% today?
• These were the worst performing ASX 200 shares in February
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher

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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. 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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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

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The share price of cybersecurity provider, Tesserent Ltd (ASX: TNT) has been launching higher over the last week.

Its gains follow the release of the company’s earnings for the first half of financial year 2022 and come amid rising concerns of cyber security threats amid geopolitical uncertainties.  

At the time of writing, the Tesserent share price is 17.7 cents, 1.14% higher than its previous close.

That’s also 22% higher than where it closed last Tuesday – 14.5 cents.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.3%. Though, it has fallen 0.1% over the last 5 sessions.

Let’s take a look at what might be boosting the Tesserent share price lately.

What’s driving the Tesserent share price lately?

It’s been a big week for Tesserent and its share price after the company released its half-year earnings on Friday.

Over the 6 months ended 31 December, the cybersecurity and cloud services provider’s revenue surged 52% to $43.9 million. Of that, 44% was reoccurring revenue.

At the same time, its earnings before interest, tax, depreciation, and amortisation (EBITDA) more than doubled to reach $5.6 million.

The Tesserent share price surged 15% on the back of its half-year results.

Commenting on its earnings, Tesserent chair Geoff Lord said the company is “mindful of the heightened level of cyber security risk that exists for Tesserent clients” due to Russia’s invasion of Ukraine.

“We note that Tesserent has targeted capabilities to address these risks in its Cyber Enhanced Situational Awareness and Response capabilities,” Lord continued.

On that note, the Tesserent share price is gaining alongside some international defence and cybersecurity stocks.

They’re being boosted by expectations that spending in the sectors will rise as concerns of Russian cybersecurity attacks increase, according to reporting by the Guardian.

The Global X Cybersecurity EFT (NASDAQ: BUG) has risen 10.2% over the last week, with its stock currently trading at US$30.86.

Tesserent’s gains also come after the Australian Cyber Security Centre (ASCS) warned organisations to “urgently adopt an enhanced cyber security position”:

There has been a historical pattern of cyber attacks against Ukraine that have had international consequences

Malicious cyber activity could impact Australian organisations through unintended disruption or uncontained malicious cyber activities.

While the ACSC is not aware of any current or specific threats to Australian organisations, adopting an enhanced cyber security posture and increased monitoring for threats will help to reduce the impacts to Australian organisations.

The post Why has the Tesserent (ASX:TNT) share price rocketed 22% in a week? appeared first on The Motley Fool Australia.

More reading

• Tesserent (ASX:TNT) share price rockets 15% as earnings, revenue soar
• Back on the horse! ASX tech shares stage stunning comeback following sell-off

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 Bruce Jackson.

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

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

Even at the height of the craze supporting Shiba Inu (CRYPTO: SHIB), the most the cryptocurrency was ever worth was $0.00008 per token. As the time of writing, after the collapse of the crypto market, the dog-faced token is now worth $0.000027, or two-thirds less than what it was worth just four months ago.

It would take Shiba Inu a 37,000% hop to hit a penny. From there, it would be another 10,000% more to reach $1.  In other words, only a 3.7 million per cent increase gets you to $1.

Numbers like that might make your head spin, but perhaps buyers of the altcoin should really be asking themselves: “Can Shiba Inu make me wealthy with more reasonable expectations?” 

It looks like the boat already sailed

Early investors in Shiba Inu who held onto the token have already padded their accounts with millions of dollars. Had you invested just $5 on Jan. 1, 2021, at its peak 10 months later, you would have been sitting on a 60 million per cent gain and a value of over $3 million.

Had you held on until the end of the year, you would have seen that value plunge by well more than half, but would still have a nice nest egg of almost $1.3 million. The question for new people considering buying in is whether Shiba Inu has the chops to make even modest gains going forward.

Cryptocurrencies are volatile to be sure and investing in a token in the blind hope that lightning strikes twice is not the way to put your money to work, even if it is just half a sawbuck. 

Getting accepted into the club

What the biggest cryptos — like Bitcoin, Ethereum, and Cardano — have going for them is that they are seen as valid mediums of exchange with a store of value.

Tens of thousands of merchants now accept Bitcoin as payment. As the oldest and most widely distributed crypto, it has become almost mainstream. Yet for all of its ability to be used to buy goods and services, Bitcoin is also seen as an investment in its own right and is held for its potential future value. It is seen as inherently valuable by many despite its day-to-day volatility.

It’s much the same with Ethereum and Cardano, though their acceptance is not nearly as widespread as Bitcoin’s.

Broad acceptance hasn’t been the case with Shiba Inu, though that’s changing. In December, the Flexa payment platform added the token to its system, which is accepted by more than 40,000 merchants, including GameStop, Nordstrom, and Lowe’s.

A few companies made a big deal about attracting Shiba Inu owners to their brand, like Regal Cinema owner Cineworld, which reportedly gave moviegoers a 20% discount on ticket prices if they purchased tickets with the token. AMC Entertainment asked its shareholders in a poll if it should add Shiba Inu and received a resounding yes in response. It plans to add the token (along with Dogecoin) as a purchase option sometime in the first quarter.

A lot of ifs

Meanwhile, there is something called the Shibarium in the works, a layer-2 blockchain project designed to run on top of Ethereum (Shiba Inu is an Ethereum-based token) that seeks to overcome two other problems Shiba Inu has faced: slow processing times and very high transaction fees.

If successful, that could lead to the development of non-fungible token (NFT) gaming and an entry into the metaverse. That could fuel even greater adoption for Shiba Inu, as could a listing on Robinhood Markets. But there are no guarantees any of this will come to fruition.

Moreover, it faces pressure not from more tokens being added to its already expansive base of 550 trillion tokens, but from new blockchain-based projects coming online. Without much to differentiate Shiba Inu, new alternatives that provide faster processing times or lower fees will assume a competitive advantage.

There is only the remotest of chances Shiba Inu will ever hit a penny in value, let alone a dollar. Reaching $1 would mean the cryptocurrency would be worth $550 trillion, or more than five times the gross domestic product (GDP) of all the world’s economies combined.  

Shiba Inu would need the perfect alignment of the stars for it to attain a return to its former heights, let alone any real gain in value, which is why should steer clear of this cryptocurrency. 

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

The post Can Shiba Inu reach $1? appeared first on The Motley Fool Australia.

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• 2 reasons Shiba Inu and Dogecoin are soaring this weekend
• Chasing its tail? Shiba Inu price tumbles today following 38% leap
• It’s happening again — Shiba Inu goes parabolic, shooting 38% higher

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. 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.

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

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The Sandfire Resources Ltd (ASX: SFR) share price is crashing as some brokers are warning investors to sell the shares following its profit results and update yesterday.

The copper miner plunged 10.8% to $5.98 this morning. This makes it the worst performer on the S&P/ASX 200 Index (ASX: XJO) at the time of writing.

Poor results and MATSA update sinks the Sandfire share price

Sandfire reported a first half net profit of US$54 million which was below consensus expectations of US$70 million.

But that was arguably not the worse piece of news. The update on the MATSA project added insult to injury.

“Focus was all on updated FY22 group guidance including the recently acquired MATSA underground copper/zinc mine in Spain,” said Goldman Sachs.

“At MATSA; both production and cost guidance [were] c. 5-10% worse than the guidance provided at the time of acquisition.”

Why Goldman is telling investors to sell

The miss is due to the lowering of cut-off, and therefore head grades. This means the costs to operate the mine is higher than expected.

Shareholders will have to wait until around the middle of this year to get an update on resources of reserves for MATSA.

Goldman Sachs reiterated its sell recommendation on the Sandfire share price. Its 12-month price target on the miner is $5.75 a share.

Dividend miss adds to gloom

Another with a dim view of Sandfire is JPMorgan. The broker noted that the miner’s results were not only below its forecasts, but the interim dividend of 3 cents per share was 2 cents shy of its expectations.

While the updated MATSA production guidance of 5 million tonnes to June 2022 was similar to what the broker had pencilled in, the cash cost of US94 cents a pound was significantly ahead of JPMorgan’s forecast.

JPMorgan retained its underweight recommendation on the Sandfire share price with a price target of $5 a share.

Sandfire share price still has its supporters

However, not all brokers have abandoned the miner. Macquarie Group Ltd (ASX: MQG) stuck to its outperform call on Sandfire despite the disappointing result, although it lowered its price target by 5% to $9 a share.

Meanwhile, Shaw and Partners are also urging supporters to keep the faith. The broker said the results were ok and continued to keep its buy recommendation on the shares.

Its 12-month price target on the Sandfire share price is $7.80 a share.

The post Why is the Sandfire (ASX:SFR) share price fizzling 11% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• ‘Impressive and consistent’: Sandfire Resources (ASX:SFR) share price gains on half-year earnings
• 2 ASX mining shares cracking 52-week highs today
• Sandfire (ASX:SFR) share price firms after completion of $2.6b acquisition

Motley Fool contributor Brendon Lau owns Macquarie Group Limited and Sandfire Resources NL. 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 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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