Tag: Motley Fool

The Rio Tinto Limited (ASX: RIO) share price is under pressure today despite iron ore prices holding firmly at US$135.50 per tonne.

At the time of writing, shares in the world’s second-largest metals and mining company are fetching $111.24, down 2.22% from its previous close. Accounting for today’s move to the downside, the mining giant’s share price is now 19% off of its 52-week high.

The sluggish start to the week for the Rio Tinto share price comes amid a renewed focus on the miner’s unresolved royalty dispute with Traditional Owners.

A $400 million weight hanging over Rio’s head

In July 2020, Rio Tinto discovered and informed the Gumala Aboriginal Corporation (GAC) of an underpayment in relation to the Yandicoogina mine in Western Australia. According to Rio Tinto, these underpayments pertaining to its Land Use Agreement amounted to $40 million.

However, upon conducting a forensic audit, GAC believes the underpayment is $400 million. This is an order of magnitude more than Rio’s estimate.

Fast forward more than 18 months, ASX-listed Rio Tinto is still yet to settle its dispute with GAC. The unresolved matter risks overshadowing Rio Tinto’s 25th anniversary of its royalty agreement with Traditional Owners in March.

For Rio Tinto, this would only add to its tarnished reputation following the destruction of the culturally significant Juukan Gorge in May 2020.

In an attempt to resolve the underpayment dispute, Rio Tinto is believed to have offered $150 million. The amount is substantially more than the original $40 million offered by the mining company. Although, it is still less than half of what GAC believes to be the rightful figure.

The grey area surrounding the Yandicoogina agreement arises from a difference in how the royalty is determined. Unlike modern arrangements, the much older agreement with GAC is based on the amount of ground disturbance. How ‘disturbance’ is defined is at the core of this unresolved matter.

Due to these issues, ASX-listed Rio Tinto and GAC are also in the process of negotiating new terms for the agreement. This could see GAC paid based on iron ore sales instead of ground disturbance. In addition, GAC is fighting for part of future royalties to be paid in Rio Tinto shares.

Unearthing Rio Tinto share price performance

The performance of the Rio Tinto share price is flat over the last 12 months. Shares in the mining giant have tumbled in tandem with iron ore prices.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 4.8% in the past year. This means ASX-listed Rio Tinto has underperformed the market by ~5%. However, it has provided a better return than other iron ore peers. An example is Fortescue Metals Group Limited (ASX: FMG), which is down 13% in the last year.

The post Rio Tinto (ASX:RIO) vs Traditional Owners: $400m battle continues appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Own Rio Tinto (ASX:RIO) shares? What options does the company have in response to the Serbian government’s decision
• Own Rio Tinto (ASX:RIO) shares? Work at its major copper project is about to restart
• Two top ASX 200 mining shares to watch in 2022: Saxo Markets
• Rio Tinto (ASX:RIO) share price edges lower amid Serbian licence decision

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/LEtb84P57

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Corporate Travel Management Ltd (ASX: CTD)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $28.00 price target on this corporate travel specialist company’s shares. The broker appears to have had a bit of push back from investors in respect to its recommendation previously. However, its analysts are holding firm and believe the future is bright for Corporate Travel Management due to industry consolidation and its forecast for higher margins. The Corporate Travel Management share price is trading at $21.27 on Monday afternoon.

NEXTDC Ltd (ASX: NXT)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $14.40 price target on this data centre operator’s shares. This follows the announcement of a lift in contracted utilisation to 81MW following new contract wins. While this is in line with the broker’s estimates, it believes it should be a boost to investor sentiment and calm any concerns heading into earnings season. The NEXTDC share price is fetching $10.71 today.

ResMed Inc (ASX: RMD)

Analysts at Citi have upgraded this medical device company’s shares to a buy rating with a $38.00 price target. According to the note, Citi made the move on valuation grounds following recent share price weakness. It notes that ResMed’s shares are trading at a discount to historic multiples. In addition, the broker believes ResMed will still deliver strong growth in FY 2022 despite facing supply chain challenges. The ResMed share price is trading at $31.85 on Monday afternoon.

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

More reading

• ASX 200 (ASX:XJO) midday update: Ansell crushed, ResMed upgraded
• Why is the NextDC (ASX:NXT) share price climbing today?
• Broker upgrade sends ResMed (ASX:RMD) share price charging higher
• 5 things to watch on the ASX 200 on Monday
• Why AnteoTech, Newcrest, Nitro, and ResMed shares are falling

Motley Fool contributor James Mickleboro owns NEXTDC 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 recommended Corporate Travel Management Limited and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/xoIuHU6iQ

Key points

• BrainChip shares have been bid notably higher this year
• It isn’t just retail investors that are buying
• BrainChip has a large amount of institutional money invested in its shares

---

The BrainChip Holdings Ltd (ASX: BRN) share price is pushing higher on Monday.

In afternoon trade, the artificial intelligence technology company’s shares are up 2.5% to $1.42.

While the BrainChip share price is trading well off its highs for the month, it is still up a very impressive 80% since the start of the year.

Who is buying BrainChip shares?

Although BrainChip shares have become a favourite with day traders and a small pocket of retail investors, they are not the only ones that have been buying.

When the company released its quarterly update last week, it also released an update on its top 20 shareholders.

Management commented: “Given the recent volume of share-trading activity, the Company believes it is appropriate to provide investors with an update of our Top 20 Shareholder List.”

Who’s in the top 20?

The company’s largest shareholder remains its Founder and Chief Technology Officer, Peter Van Der Made, with 160.3 million shares. This equates to an interest of 9.351% in the company.

After Van Der Made, the share registry is dominated by a host of investment banks. Merrill Lynch Australia is one of the largest shareholders with a 6.429% stake, as is HSBC Australia with its separate 4.748%, 3.678%, and 1.45% stakes. Another notable shareholder is Citicorp with an interest of 4.227%.

These shareholders are listed as custody nominees, which usually means that they are investing these funds on behalf of institutional clients.

Among the other largest shareholders are BNP Paribas, JP Morgan, Comsec, UBS, LDA Capital, and its former CEO, Louis Dinardo. Despite Mr Dinardo’s unceremonious exit from the company last year, he hasn’t sold any of his shares. The former CEO still owns 11.8 million shares, which equates to a 0.687% stake.

Time will tell whether these investments generate strong long term returns for their holders.

The post Own BrainChip (ASX:BRN) shares? Here’s some of the institutional investors which have also bought up big appeared first on The Motley Fool Australia.

More reading

• Why is the BrainChip (ASX:BRN) share price storming 12% higher?
• What happened to ASX tech shares today?
• Why Accent, BrainChip, Fortescue, and Novonix shares are sinking
• Is BrainChip (ASX:BRN) the real deal?
• Why are BrainChip (ASX:BRN) shares smashing ASX 200 trading volumes today?

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.

from The Motley Fool Australia https://ift.tt/XkbJ7mdVu

Key points

• The Telstra share price is see-sawing despite the company building strength in the Internet of Things through 2 new acquisitions
• The telco will purchase Australia’s Aqura Technologies and Brisbane-based Alliance Automation
• The acquisition of Aqura Technologies alone will cost Telstra $30 million

---

The Telstra Corporation Ltd (ASX: TLS) share price is wobbling today as the company boosts its Internet of Things (IoT) credentials.

The telecommunications giant’s technology services leg Telstra Purple will acquire Aqura Technologies for $30 million and is also forking out to buy Australian industrial automation service provider Alliance Automation.

At the time of writing, the Telstra share price is $3.94, 0.38% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.21% right now.

Telstra bolsters IoT capabilities through 2 new acquisitions

Owners of Telstra shares are likely chuffed as 2 new acquisitions are set to position the company as an industry leader in the IoT space.

For those who aren’t across the IoT, it’s a network of physical objects each with sensors and software allowing them to communicate with other devices and systems.

In its latest push into the space, Telstra Purple will acquire Aqura Technologies from Veris Ltd (ASX: VRS).

Telstra Purple has also agreed to buy Brisbane-based independent provider of IoT industrial automation solutions and control systems Alliance Automation.

The company states its purchase of Aqura Technologies will see it able to deliver industrial-grade wireless and fixed networks in remote and underground operations.

Meanwhile, acquiring Alliance Automation will expand the company’s abilities in digital transformation, industrial automation, digital twins, smart spaces, and cyber security.

Telstra Purple boss Christopher Smith said the acquisitions – Telstra Purple’s 10th and 11th – are “important building blocks of our T25 strategy” and a testament to the company’s growth strategy. Smith continued:

Both companies have demonstrated consistent historical growth, close customer and vendor relationships, backed up by a deep pool of specialist talent with a strong pipeline and growth outlook. We were impressed by their people, expertise and capabilities and believe they will be very valuable additions to the Telstra Purple team.

Telstra Purple’s acquisition of Aqura Technologies is expected to be finalised in late February.

Telstra share price snapshot

Despite the exciting news, the Telstra share price has continued to struggle through 2022 so far.

Since the final close of last year, its stock has slumped 5.6%. Though, it’s still 26% higher than it was this time last year.

The post Telstra (ASX:TLS) boosts IoT cred with new acquisitions appeared first on The Motley Fool Australia.

More reading

• Here’s why the Telstra (ASX:TLS) share price could be an opportunity: analysts
• 2 ASX dividend shares with 4%+ yields
• These 3 ASX 200 shares are topping the volume charts this Friday
• Here’s why the Telstra (ASX:TLS) dividend is back over 4%
• These 3 ASX 200 shares are topping the volume charts on Thursday

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 owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

Key points

• The Irongate share price has jumped today after another takeover offer
• Charter Hall and PGGM are interested in buying the Irongate business
• 360 Capital may end up buying some of Irongate’s assets

---

The Irongate Group (ASX: IAP) share price has stormed higher by 17% after receiving another takeover offer, this time from Charter Hall Group (ASX: CHC).

The last takeover approach by 360 Capital Group Ltd (ASX: TGP) was rejected.

Charter Hall’s bid for Irongate

In today’s announcement, it was revealed that Charter Hall’s managed partnership has lobbed a non-binding indicative proposal.

The bid is to buy all of the shares for an Irongate share price of $1.90 cash per stapled security. Under the terms of this bid, Irongate investors will be entitled to retain a distribution for the period ending 31 March 2022 of up to 4.67 cents per stapled security.

Charter Hall notes that this offer is a 21% premium to the Irongate last closing price of $1.57 per security on 28 January 2022.

The partnership between Charter Hall and the Dutch pension fund PGGM expects to fund this proposal from existing financial resources, including existing cash and new debt facilities. Charter Hall and PGGM have received approvals from their relevant board and investment committees to pursue the transaction.

Charter Hall said that it has spent considerable time and resources reviewing Irongate’s portfolio from public sources in order to be in a position to put forward this proposal. PGGM and Charter Hall are “highly motivated” and able to complete due diligence and proceed to a formal offer in an “expeditious” manner.

How does 360 Capital factor into this?

Today’s indicative proposal includes a memorandum of understanding with Irongate’s largest securityholder, 360 Capital.

The memorandum of understanding includes a call option over 360 Capital’s 19.9% securityholding of Irongate.

The memorandum also includes standstill and exclusivity provisions in favour of the partnership and describes a proposal where 360 Capital will acquire certain assets within Irongate’s portfolio, Irongate’s funds management business and its co-investment stake in the ITAP Fund if the partnership is successful at acquiring Irongate.

However, Charter Hall’s bid is not conditional on 360 Capital completing the acquisitions.

The first response

The Irongate board is considering this new indicative proposal with the assistance of its advisors, Macquarie, JP Morgan, King & Wood and Cliffe Dekker Hofmeyr.

However, it was noted that the indicative proposal has a number of conditions including completing satisfactory due diligence, final approval of the partnership’s boards and investment committees, regulatory approvals, unanimous recommendation by the Irongate board and so on.

Irongate share price snapshot

Over the last six months, Irongate shares are up around 25%.

The post Irongate (ASX:IAP) share price rallies 17% on Charter Hall takeover proposal appeared first on The Motley Fool Australia.

More reading

• Irongate (ASX:IAP) share price slides as takeover rejected again

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 Bruce Jackson.

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

Key points

• Australian Ethical Investment is a popular fund manager and super provider
• The company has seen demand for its ethical investments skyrocket in recent years
• Is this company about to expand into offering ETFs?

---

The Australian Ethical Investment Limited (ASX: AEF) share price is enjoying a very successful day of trading so far this Monday. At the time of writing, Australian Ethical shares are up a healthy 4.15% at $9.29. This ethically-minded fund manager has suffered a steep drop over the past couple of months. It has fallen from more than $15.08 a share back in mid-November to $8.70 today (a staggering 42.3% descent). Even so, this company is still up a pleasing 34% over the past year. As well as a very impressive 943% over the past five years.

So today’s big share price move comes amid reports that Australian Ethical might be broadening its horizons by launching an inaugural exchange-traded fund (ETF) product. According to a report in the Australian Financial Review (AFR) today, Australian Ethical is poised to pull the trigger on an ASX listing for its high conviction fund.

New Australian Ethical ETF to hit the ASX?

Up until now, Australian Ethical was a company that offered ethically-driven investment strategies across managed funds, superannuation and pensions. The company offers a range of nine managed funds. These cover everything from Australian and international shares to fixed-interest and income-focused investments.

The company’s high conviction fund was only launched last October, and is currently available only to wholesale (extremely wealthy) investors. However, this fund is reportedly the one getting the ETF treatment. According to the AFR report, Australian Ethical will be launching an ETF version of the high conviction fund tomorrow. The fund will trade under the ticker code ‘AEAE’ and will be available on the Chi-X exchange. This will be the first ETF launched by Australian Ethical.

The high conviction fund is a relatively concentrated managed fund that only holds between 20 and 35 shares. These are predominantly taken from the S&P/ASX 300 Index (ASX: XKO). According to the fund’s latest update for December, its top five holdings were Bank of Queensland Limited (ASX: BOQ), Coles Group Ltd (ASX: COL), Suncorp Group Ltd (ASX: SUN), Westpac Banking Corp (ASX: WBC) and Telstra Corporation Ltd (ASX: TLS).

Between its October 2021 inception and 31 December, the high conviction fund returned -1.8%. That fares poorly against its benchmark, which delivered 2.2%.

At the current Australian Ethical share price, this company has a market capitalisation of $1.04 billion. It also has a price-to-earnings (P/E) ratio of 93.88 and a trailing dividend yield of 0.75%.

The post Could Australian Ethical (ASX:AEF) be about to launch a new ASX ETF? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Ansell crushed, ResMed upgraded
• Here’s why BHP shares are in the spotlight today
• 5 things to watch on the ASX 200 on Monday
• Is February 2022 the time to buy these 2 beaten-up ASX shares?
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/F7goQqizf

Key points

• The Damstra share price is up nearly 13%
• The comany’s quarterly revenue increased 16% in Q2 of FY22
• It achieved customer wins in Australia and New Zealand

---

The Damstra Holdings Ltd (ASX: DTC) share price is on the rise today on the back of the company’s quarterly results.

Damstra provides software-as-a-service solutions to industries around the globe. At the time of writing, the company’s shares are swapping hands at 31 cents, up 12.73%.

Let’s take a look at what the company’s Q2 FY22 results revealed.

Damstra share price in the green amid results

Highlights of the company’s unaudited results include:

• Quarterly revenue increased 16% on the previous quarter to 7.2 million
• Cash receipts of $7 million quarterly
• Operating cash outflows $7.3 million, down 22% from $9.4 million in the first quarter of FY22
• Half-yearly revenue for FY22 up 16% on the prior corresponding period (PCP)
• Revenue guidance of $30-$34 million for FY22 confirmed
• Annual recurring revenue up 15% on PCP to $27.8 million

What else happened in the quarter?

Damstra attributed its improved quarterly revenue to acquiring new clients and achieving customer wins in Australia and New Zealand.

The company said another positive was its partnership with TechnologyOne. That business segment has now grown to 18 clients and Damstra is hoping to expand this partnership into the UK market.

Damstra acquired 30 new clients in total for the quarter with a total customer base of 73. Of these client contracts, none of the top 10 is due for renewal in FY22.

Damstra is also rolling out a work permit software solution to a global commercial real estate services company.

The company completed a $20 million capital raise in December to support its sales and investment internationally.

Management comment

Commenting on the results, Damstra chief executive officer Christian Damstra said:

This improved performance was due to increased activity and client wins in ANZ, and we believe in this quarter some of our international opportunities will also eventuate.

We have successfully completed our capital raise in December to strengthen our balance sheet and have sufficient capital to return to positive operating cash flows, whilst continuing to grow internationally, particularly in North America.

We have seen an increase in ANZ activity as we continue to make good progress with a number of international client opportunities, and we were pleased to provide solutions to many of our clients as they managed tracking and monitoring through the ongoing disruption from COVID-19.

What’s next for the company?

Damstra also revealed its revenue for the third quarter to date is higher than revenue at the same point in Q2.

The company plans to continue to reduce its operating cash outflows while increasing revenue. Damstra’s announcement claimed its Australian operations were a stand-out performer, despite the company not breaking down the results on location.

Damstra is also in final contract discussions with a global mining client in North America. It’s expecting a decision from this client before the end of March.

Share price recap

The Damstra Holdings share price has dropped almost 9% since the start of 2022 and more than 76% over the past 12 months.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5.54% in the past year.

The company has a market capitalisation of about $80 million based on its current share price.

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

More reading

• These are the 5 worst performing ASX shares of 2021
• 5 worst ASX 200 tech shares of 2021

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

from The Motley Fool Australia https://ift.tt/5TX7oqQGM

Investors in some of the biggest ASX gold shares have been nursing some hefty losses of late.

While the S&P/ASX 200 Index (ASX: XJO) has dropped 8.1% so far in 2022, leading gold miner Newcrest Mining Ltd (ASX: NCM) is down 12.3%.

Meanwhile, rival ASX gold share Northern Star Resources Ltd (ASX: NST) has dropped 11.7% while Evolution Mining Ltd (ASX: EVN) is down 15% since the opening bell on 4 January.

That’s the recent price action.

And it comes as the World Gold Council reports that global gold demand hit 2-year highs in 2021.

Global gold demand ramps back up

According to the World Gold Council’s latest Gold Demand Trends Report, gold demand in 2021 ramped back up following a big hit from the pandemic in 2020.

Annual demand for gold (excluding OTC markets) came in at 4,021 tonnes.

The fourth quarter was particularly strong with demand reaching 1,147 tonnes. That’s a 50% year-on-year increase and its highest quarterly level since the second quarter of 2019.

An increase in safe haven demand from spooked retail investors saw gold bar and coin demand increase by 31% to 1,180 tonnes. That’s the highest level reported since 2013.

Gold demand from the jewellery sector of 2,124 tonnes was back at 2019’s pre-COVID levels.

And the world’s central banks added a combined 463 tonnes to their bullion holdings, up 82% year-on-year. According to the report, that’s the 12th year running that central banks were net purchasers of gold.

The World Gold Council said that tailwinds for gold from increasing interest rates could be offset by the continuing demand for haven assets.

Commenting on the results, Louise Street, senior analyst EMEA at the World Gold Council, said:

Gold’s performance this year truly underscored the value of its unique dual nature and the diverse demand drivers. On the investment side, the tug of war between persistent inflation and rising rates created a mixed picture for demand. Increasing rates fuelled a risk-on appetite among some investors, reflected in ETF outflows. On the other hand, a search for safe haven assets led to a rise in gold bar and coin purchases, buoyed by central bank buying.

Street expects “similar dynamics to influence gold’s performance in 2022 with demand drivers fluctuating according to the relative dominance of key economic variables”.

How have these ASX gold shares performed longer-term?

Using the ASX 200 as our benchmark, the index has gained 4.5% over the past 12 months and is up 23.8% over the past 5 years.

So how do our 3 ASX gold shares named above stack up?

The Newcrest share price is down 16.5% over the past year and down 4.2% in 5 years.

Evolution shares are down 27.6% since this time last year but have posted a strong 55.8% gain over the last 5 years.

The Northern Star share price is down 35.9% over the full year but up a very healthy 108.4% in 5 years.

There you have it. Longer-term 2 out of 3 of these ASX gold shares have trounced the index’s returns.

The post Own ASX gold shares? World Gold Council reports big boost in demand appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why AnteoTech, Newcrest, Nitro, and ResMed shares are falling
• ASX 200 (ASX:XJO) midday update: ResMed and PointsBet disappoint
• Newcrest (ASX:NCM) share price down 4% following Q2 update
• 5 things to watch on the ASX 200 on Friday

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.

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

Key points

• Next Science shares shoot higher on new distribution deal
• Expanded presence of Xperience in United States market
• Zimmer Biomet withdraws complaint filed against Next Science last year

---

The Next Science Ltd (ASX: NXS) share price is on the move at midday on Monday. This comes after the company announced a major positive announcement to the ASX today.

At the time of writing, the medical technology company’s shares are fetching $1.17, up 11.43%.

What did Next Science announce?

Investors have been buying Next Science shares after the company revealed it has further developed its relationship with Zimmer Biomet.

According to its release, Next Science advised it has signed a United States distribution agreement with Zimmer for Xperience. 

Under the deal, Zimmer will sell a white-label version of Xperience into the United States market under its own brand. The product will launch sometime in the second half of 2022. The news appears to have sent Next Science shares rocketing today.

Next Science will receive a portion of revenues from Zimmer’s white label Xperience product. Although no details were provided in the release as to exactly how much Next Science will collect.

The agreement will run for five years, but can be extended for a further five years.

Management noted that the contract confirms Next Science’s Xperience intellectual property ownership and rights.

In June 2021, Zimmer filed a complaint in reference to Next Science’s commercialisation and distribution rights to its Xperience No Rinse Antimicrobial Solution. This is now resolved, with Zimmer withdrawing the complaint.

In addition, both parties have agreed to a refreshed distribution arrangement for Bactisure in the United States market. The revised term has been extended until the end of 2026, with a renewal option for another five years.

Next Science managing director Judith Mitchell said:

The new arrangements with Zimmer provide a paradigm shift in the representation of Xperience to the US orthopaedic market. The Zimmer joint replacement sales team is a well credentialled market leading commercial force in the orthopaedic market and we look forward to the positive impact it can have on the US market for the white labelled version of our Xperience product, aligning with Next Science’s overall mission of healing patients and saving lives.

About the Next Science share price

Next Science shares have travelled sideways over the last 12 months, registering a loss of 4.88%.

It’s worth noting that the company’s share price hit a fresh 52-week low of 99 cents before rebounding last week.

Based on valuation grounds, Next Science presides a market capitalisation of roughly $231.63 million, with approximately 197.97 million shares outstanding.

The post Here’s why the Next Science (ASX:NXS) share price is rocketing 11% today appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Why is the NIB (ASX:NHF) share price sliding 7% today?
• Here’s why the Bluebet (ASX:BBT) share price is tanking 5% today
• On fire! Firebrick (ASX:FRE) share price surges another 22% on second day of trade
• Wesfarmers (ASX:WES) threatens to fly the WA coop. Here’s the latest

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

from The Motley Fool Australia https://ift.tt/KRmX67GJw

Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest rose to 15.2%. Short sellers have been increasing their positions amid concerns over its valuation and the impact that the Omicron variant could have on the travel market recovery.
• Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 11.1%. Short sellers will have been celebrating last week after the ecommerce company’s shares tumbled following the release of another disappointing half year update.
• Zip Co Ltd (ASX: Z1P) has seen its short interest rise to 10.8%. Short sellers appear concerned by increasing competition in the buy now pay later market and rising costs to support its growth.
• BHP Group Ltd (ASX: BHP) has short interest of 10.1%, which is up week on week once again. Traders are shorting BHP’s shares in order to profit from the unwinding of its dual listing, which will take effect later today.
• Mesoblast limited (ASX: MSB) has short interest of 9.6%, which is up week on week again. This biotech company’s shares have come under pressure over the last 12 months due poor trial results and its cash burn. The loss of a potential US$1.25 billion deal with Novartis hasn’t helped the latter.
• Webjet Limited (ASX: WEB) has short interest of 9.6%, which is up week on week. As with Flight Centre, this appears to have been driven by concerns about the travel market recovery.
• Redbubble Ltd (ASX: RBL) has short interest of 9.2%, which is down week on week. Short sellers may have been closing positions to lock in their gains after this ecommerce company’s shares were sold off following a disappointing trading update.
• Polynovo Ltd (ASX: PNV) has seen its short interest rise to 9.2%. Although this medical device company’s performance has been improving, short sellers don’t appear to believe it will last.
• Appen Ltd (ASX: APX) has seen its short interest rise to 7.7%. Short sellers aren’t giving up on this artificial intelligence data services provider despite it being tipped to surprise to the upside with its full year results next month.
• Nanosonics Ltd (ASX: NAN) has 7.2% of its shares held short once again. Short sellers may be targeting the medical device company due to the lofty multiples that its shares trade on.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Ansell crushed, ResMed upgraded
• Here’s why BHP shares are in the spotlight today
• Analysts name 2 ASX 200 mining shares to buy in February
• Is February 2022 the time to buy these 2 beaten-up ASX shares?
• These were the worst performing ASX 200 shares last week

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 Appen Ltd, Kogan.com ltd, Nanosonics Limited, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd, Kogan.com ltd, and Nanosonics Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/eo04i29G6