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The S&P/ASX 200 Index (ASX: XJO) has unfortunately slipped into negative territory so far this Thursday, after an initially strong market open. The ASX 200 is currently down by 1.53% and is sitting at 6,855 points at the time of writing. That performance is getting shown up by the BHP Group Ltd (ASX: BHP) share price in a big way.

Comprehensively defying the broader market, BHP shares are currently up a healthy 1.78% at $45.83 apiece after rising as high as $46.48 earlier in the trading day.

So how is BHP managing such a robust performance this Thursday?

Well, it’s not entirely clear. But it could have something to do with the ASX notice the company put out this morning before market open.

BHP shares up as unification now a virtual certainty

This notice confirmed that BHP shareholders have voted in favour of the company’s proposed ‘unification’ program on 20 January. This will result in BHP withdrawing its BHP Group plc (LON: BHP) dual-listing on the London Stock Exchange (LSE).

That will leave its ASX listing as its primary global share market presence, as well as adding an extra few hundred billion or so to its ASX market capitalisation.

But the ASX release also revealed the UK Court has just issued a court order that sanctions the unification process. This effectively removes the last barrier to unification. The company now expects the process to be finalised at 9pm Greenwich Mean Time (GMT) on 28 January (8am on January 29 AEDT). That’s when “the UK Court Order is expected to be delivered to the UK Registrar of Companies”, according to BHP.

After that, BHP is expecting unification to be wholly wrapped up on 31 January. This is when holders of the BHP plc LSE-listed shares and BHP plc American Depository Receipts (ADRs) will have their shares and ADRs swapped for ASX-listed shares and ADRs at a one-for-one basis.

It’s very possible this news could be behind the strong BHP share price performance thus far today. This has been a long and complicated process for the company to go through. So no doubt many investors would be pleased it has gone off without a hitch.

In other news, my Fool colleague Tony recently interviewed a top ASX fund manager that named BHP shares as one of the investments to look at in the current investing environment.

At the current BHP share price, this ASX 200 mining giant has a trailing dividend yield of 8.8%.

The post Why is the BHP (ASX:BHP) share price leaping ahead today? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares to guide you out of this bloodbath: expert
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• Two top ASX 200 mining shares to watch in 2022: Saxo Markets
• These are the 10 most shorted ASX shares
• ASX 200 (ASX:XJO) midday update: Whitehaven sinks, BHP to unify

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• FY 22 guidance maintained
• Gold production slipped
• Cash in bank up

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The Evolution Mining Ltd (ASX: EVN) share price is taking a tumble today, down 10.13% to $3.51 per share.

Below we take a look at the ASX gold miner’s quarterly activity report for the period ending 31 December, which appears to be driving today’s losses.

What did Evolution report?

• Gold production of 148,084 ounces, down from 170,681 ounces the prior quarter
• Improved All-in Sustaining Cost (AISC) of $1,347 per ounce
• Evolution maintained guidance for FY22 of 670,000–725,000 ounces with a forecast AISC of $1,135–1,195 per ounce.
• Cash in bank of $1.150 billion as at 31 December, up from $422 million the previous quarter

What else happened in the quarter?

The Evolution share price is under pressure today, despite the gold miner reporting year-to-date production of 318,766 ounces at an AISC of $1,381 per ounce and maintaining its guidance for the 2022 financial year.

Investors may be selling Evolution shares on the 13% quarter-on-quarter reduction in gold production.

The average gold price the company received increased from $2,364 per ounce in the September quarter to $2,378 in the December quarter. But the amount of gold sold dropped from 163,046 ounces in the prior quarter to 155,287 ounces in the quarter just past.

One of the factors hampering gold production during the quarter was heavy rains at Evolution’s Cowal and Mt Rawdon projects, which impacted access to the pits during the quarter.

Evolution also said labour shortages are creating challenges at its Mungari mine in Western Australia.

As for the pandemic, the company reported that, “COVID-19 continues to be proactively managed with limited impact on operational performance in the December quarter. However, positive cases and isolation of close contacts has resulted in periods where up to 15% of the workforce has been unavailable at Red Lake and Cowal.”

Mine operating cash flow increased 5% quarter-on-quarter to $203 million.

Evolution had a net debt position (excluding pre-paid loan fees) of $449 million as at 31 December.

What’s next?

Looking ahead, Evolution said it’s continuing to upgrade the quality of its asset portfolio.

Among those, it pointed to its “transformational acquisition of Ernest Henry”, which was completed on 6 January.

According to the company, “An immediate increase in copper production will reduce Group All-in Sustaining Costs and positions Evolution as one of the lowest cost gold producers in the world.”

Evolution’s current guidance and outlook “include the benefit of this acquisition”.

Evolution share price snapshot

The Evolution share price has struggled over the past 12 months, down 25%. That compares to a gain of 1% posted by the S&P/ASX 200 Index (ASX: XJO) over that same time.

So far in 2022, Evolution shares have slipped 14%.

The post Why is the Evolution (ASX:EVN) share price sinking 10% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Premier impresses but Kogan disappoints again
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Thursday

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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Key points

• The Qantas share price leapt 3.2% in early trading today before falling back
• The company is fronting a Fair Work Commission hearing regarding cabin crew pay today
• CEO Alan Joyce says the WA border closure is creating angst for the company

The Qantas Airways Limited (ASX: QAN) share price has fallen into the red after starting the day well with a 3.2% gain in early morning trade. The shares are currently swapping hands for $4.63, down 0.64% on yesterday’s closing price.

ASX travel shares are enduring a rollercoaster ride today, with other travel companies following the same pattern.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is currently down 0.06% to $15.91, having also leapt in early trading by as much as 4% before falling back.

The Webjet Limited (ASX: WEB) share price is currently $4.78, up 0.53%. However, earlier this morning it was up by 4.4% and hit an intraday high of $4.97.

Let’s take a look at the latest news from Qantas.

What’s happening with Qantas?

The Qantas share price has been on a downward trend in January, falling by 10% year to date.

On Australia Day, lobby group Australian Tourism urged the Federal Government to reopen our international border immediately.

As reported in The Financial Review, Australian Chamber-Tourism chief executive John Hart said:

As a matter of priority, the federal government must expedite the reopening of our international borders to all fully vaccinated travellers, a move that will provide the tourism industry with confidence to resume their operation.

Qantas is dealing with a Fair Work Commission hearing today regarding cabin crew pay. The Australian reported that the commission will hear the company’s application to put flight attendants on a new work agreement. The new agreement includes a 2-year pay freeze and more flexible rostering.

Yesterday, my Foolish colleague Tony reported that Ord Minnett senior investment advisor Anthony Paterno is optimistic about Qantas.

Paterno said: “We remain positive about a domestic leisure-led recovery, a prevailing rational domestic market, and strong loyalty earnings.”

What does the Qantas CEO have to say?

WA Premier Mark McGowan recently announced he would be holding off on a planned reopening of the state’s border on 5 February.

On Tuesday, Qantas CEO Alan Joyce appeared on 6PR radio in Perth saying the WA state border closure is creating angst for the company.

Joyce said:

We are faced with not knowing when the borders will open up again. So what do we do and how do we plan for that?

This uncertainty is creating for us a lot of angst about what do we plan going forward without having a certain date. Even if we get that commitment, could something change again?

Among the flight routes facing uncertainty is a Perth to London service earmarked to commence in April. A Perth to Rome flight is also due to commence in June.

Joyce continued:

I think every business has to plan a back up when you don’t have the certainty of a date. Probably in the next days, or in the next week or so, we will have to make a call on the Perth to London (flight route) for April.

As my Foolish colleague Aaron reported recently, Qantas has reviewed its capacity settings in response to the border opening delay. Capacity will be cut by 10% from 5 February to 31 March.

Share price snapshot

The Qantas share price is flat over the past 12 months. Over the past 5 days of trading, it has shed 8.6%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 6.5% over the past week.

Qantas has a market capitalisation of about $8.8 billion based on its current share price.

The post Qantas (ASX:QAN) share price falls amid rollercoaster day for ASX travel shares appeared first on The Motley Fool Australia.

More reading

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• Why the Qantas (ASX:QAN) share price will be on watch today
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• Can the Qantas (ASX:QAN) share price fly higher in 2022?
• ASX travel shares are nosediving today amid border opening delays

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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Key Points

• Atomo shares accelerate on back of New Zealand approval for its antigen test
• Businesses and pharmacies allowed to supply COVID kit for sale
• Atomo has secured up to 20 million units for Australia and New Zealand

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The Atomo Diagnostics Ltd (ASX: AT1) share price is racing higher during Thursday trade. This comes after the company announced it has received approval to expand its product into another key geographical market.

At the time of writing, the medical device company’s shares are up 17.5% to 23.5 cents apiece. However, in early trade they were up 25% at 25 cents before partially retreating.

Atomo expands geographical presence

Investors are driving up the Atomo share price after digesting the company’s latest positive news.

In a statement to the ASX, Atomo advised its COVID-19 antigen test has been approved for use in New Zealand.

The green light was given by the New Zealand Ministry of Health under the New Zealand COVID-19 public health response.

The country is currently on ‘red alert’ status after the Omicron variant continued to accelerate across key cities.

This follows one of the most significant turning points of New Zealand’s pandemic, with the government accepting the virus. The suppression strategy is a major psychological shift from the previous pathway of aiming to achieve COVID zero.

The COVID-19 antigen test can be used by professionals such as healthcare workers and government agencies or for self-test use.

New Zealand-based businesses and pharmacies are all permitted to supply, distribute, and sell the Atomo COVID-19 antigen test.

To support demand, Atomo secured up to 20 million COVID-19 rapid antigen tests for Australia and New Zealand in 2022.

The company revealed it renegotiated its supply agreement with United States manufacturer, Access Bio, last August.

Commenting on the news driving the Atomo share price higher, managing director John Kelly said:

We are excited the Atomo antigen test has received approval for use in New Zealand and we have now commenced commercial discussions related to supply of the product to the New Zealand market.

Atomo share price summary

Over the past 12 months, the Atomo share price has moved on a rollercoaster ride to post a loss of almost 20%.

It’s worth noting that despite today’s strong gains, the company’s shares are down by more than 21% in 2022.

Based on today’s price, Atomo has a market capitalisation of roughly $100.13 million, with approximately 408.69 million shares on issue.

The post Here’s why the Atomo (ASX:AT1) share price is rocketing 17% today appeared first on The Motley Fool Australia.

More reading

• Why has the Atomo Diagnostics (ASX: AT1) share price surged 50% since Christmas?

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 Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher today after a rise in the iron ore price offset a few bearish broker notes.

At the time of writing, the iron ore giant’s shares are up 0.5% to $19.60.

What are brokers saying about the Fortescue share price?

In response to the company’s second quarter update earlier this week, Citi, Credit Suisse and Goldman Sachs have released bearish notes.

For example, this morning Citi retained its sell rating and $17.00 price target. It feels the market is getting too optimistic with the Fortescue Future Industries business.

Over at Credit Suisse, its analysts downgraded Fortescue’s shares to an underperform rating with a $14.00 price target. It believes its valuation is stretched, noting that its shares trade on much higher multiples than its peers.

Finally, Goldman Sachs has retained its sell rating and lowly $13.50 price target. Based on the current Fortescue share price, this implies potential downside of over 30%.

Why is Goldman bearish?

Goldman Sachs echoed Credit Suisse’s concerns about the Fortescue share price in comparison to peers BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

It commented: “The stock is trading at c. 1.65x NAV vs. RIO at c. 0.9x NAV. FMG is pricing in c. US$80/t (real) long run iron ore vs. our US$67/t (real 2022 $) estimate, and trading at a significant premium to BHP & RIO, which we think is unwarranted considering the lack of diversification.”

In addition to this, like Citi, the broker has concerns over its Fortescue Future Industries business. It feels that dividends will be impacted by its aim to decarbonise the Pilbara.

Goldman said: “We think decarbonising the Pilbara could cost FMG over US$7bn and requires +US$50/t carbon or a green premia to be NPV positive. FMG has outlined that the Pilbara decarbonisation project/assets would logically sit within FFI (although ultimately under a Power Purchasing Agreement (PPA) which would still be reflected on FMG’s balance sheet). In order to fund FFI projects, we think FMG will need to reduce their dividend payout ratio from 80% to 50% from 2022 onwards.”

All in all, these brokers appear to believe the next 12 months could be tough for the Fortescue share price.

The post Broker tips Fortescue (ASX:FMG) share price to sink 30% and warns of dividend cuts appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why Accent, BrainChip, Fortescue, and Novonix shares are sinking
• ASX 200 (ASX:XJO) midday update: Zip confirms Sezzle talks, Fortescue’s Q2 update
• Fortescue (ASX:FMG) share price lower following Q2 update
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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Key points

• The AMP share price is up 1.71% on Thursday, trading at 89.5 cents
• The gain comes amid reports that the company is looking for acquisitions to boost its assets after its planned demerger
• Said to be on its wish list is CBA’s 45% stake in Colonial First State

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The AMP Ltd (ASX: AMP) share price is in the green today amid reports that the company is debating acquiring a stake in superannuation and wealth manager, Colonial First State.

Market watchers might be familiar with Colonial. It’s currently owned in part by the Commonwealth Bank of Australia (ASX: CBA).

At the time of writing, the AMP share price is 89.5 cents, 1.71% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is in the red right now, having slipped 0.91%.

Let’s take a closer look at the financial services company’s rumoured acquisition target.

AMP share price gains amid acquisition rumours

The AMP share price is gaining on Thursday. At the same time, the market might be digesting claims the company is shopping for assets ahead of its planned demerger.

According to reporting by The Australian, AMP is sussing out the potential acquisition of CBA’s share of Colonial First State. The purchase would boost the size of AMP’s wealth management and banking divisions after it splits from its private markets business.

CBA sold 55% of the superannuation and wealth manager to private equity firm Kohlberg Kravis Roberts (KKR) in May 2020. The bank announced the sale alongside a trading update for 2020’s March quarter.

The majority stake cost KKR around $1.7 billion, implying a total valuation of $3.3 billion.

As The Australian notes, AMP will likely need to undergo a capital raise to afford CBA’s remaining stake in Colonial First State.

The embattled company could also reportedly be looking to purchase BT Panorama from Westpac Banking Corp (ASX: WBC). The wealth management platform is expected to have a price tag of at least $1 billion.

According to CommSec, AMP had a market capitalisation of around $2.8 billion as of its previous close.

The AMP share price has been tumbling over recent years, likely spurred by the 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Since the end of 2017, the financial services company’s stock has slumped 82% – hitting a new record low of 87 cents on Wednesday.

The post Own AMP (ASX:AMP) shares? The company is rumoured to be on the hunt for assets appeared first on The Motley Fool Australia.

More reading

• Why Westpac (ASX:WBC) and these other ASX shares are trading at 52-week lows
• Is value finally emerging in the AMP (ASX:AMP) share price?
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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 recommended Westpac Banking Corporation. 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has given back its earlier gains and is tumbling lower. The benchmark index is currently down 1% to 6,889.6 points.

Here’s what is happening on the ASX 200 today:

Premier impresses

The Premier Investments Limited (ASX: PMV) share price is storming higher today after the retailer overcame the loss of 42,000 trading days during the first half to deliver sales and earnings growth. The Premier Retail business’ sales are expected to come in at $769 million and EBIT is expected to be $209.5 million to $211.5 million. This represents growth of 0.5% on the top line and 4.2% to 5.3% on the bottom line.

Kogan disappoints

It hasn’t been a good half for Kogan.com Ltd (ASX: KGN). This ecommerce company’s shares are sinking to a new 52-week low after it released a trading update. Kogan reported a 9% lift in first half gross sales but a massive 70.1% decline in EBITDA to $21.7 million. Higher logistic costs and its investment in marketing weighed heavily on Kogan’s margins.

Evolution shares sink

The Evolution Mining Ltd (ASX: EVN) share price is under significant pressure on Thursday following a pullback in the gold price and the release of its quarterly update. In respect to the latter, investors appear disappointed with the company’s costs during the quarter. Evolution delivered gold production of 148,084 ounces at an all-in sustaining cost (AISC) of A$1,347 an ounce. The latter compares to its FY 2022 AISC guidance of A$1,135 to A$1,195 an ounce, which has been maintained.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Beach Energy Ltd (ASX: BPT) share price with a 10% gain. This follows the release of a number of bullish broker notes in response to its recent quarterly update. The worst performer has been the Evolution share price with a decline of almost 10% following its update.

The post ASX 200 (ASX:XJO) midday update: Premier impresses but Kogan disappoints again appeared first on The Motley Fool Australia.

More reading

• Here’s why the Kogan (ASX:KGN) share price just sank 15%
• Premier (ASX:PMV) share price jumps 9% after solid growth despite losing 42,000 trading days
• 2 cheap financial ASX shares to buy right now
• 5 things to watch on the ASX 200 on Thursday
• Is the Brickworks (ASX:BKW) share price a smart buy in this volatility?

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 Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Premier Investments 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 OZ Minerals Ltd (ASX: OZL) share price is sliding during this morning’s session and is now trading 1.48% in the red at $25.88.

Investors are selling positions in OZ Minerals today following the release of the company’s fourth-quarter report for the 3 months ending 31 December 2021.

It was a busy quarter that included several investment highlights and challenges. Let’s take a look.

OZ Minerals achieves guidance, share price slides

Highlights from the quarter include:

• Record FY revenue of $2.1 billion for the quarter
• Strong closing cash balance of $215 million (unaudited) after growth investments
• 2021 group production and costs guidance achieved
• Copper guidance met for a 7th successive year
• Growth projects advanced, including Carrapateena block cave expansion, Prominent Hill Wira shaft mine expansion
• West Musgrave study on track for investment decision in H2 2022
• Carajas East hub strategy in place with Pedra Branca now mining from multiple stopes and a maiden Mineral Resource estimate for Santa Lucia

What happened last quarter for Oz Minerals?

The OZ Minerals share price is in the red despite some seemingly impressive results. The company delivered on production and cost guidance and reduced its injury rates while doing so. Impressively, OZ achieved record revenue of more than $2 billion and the company ended the year with a cash balance of $215 million.

Unaudited net revenue for the year was $2.09 billion, a 56% year-on-year increase. This was underpinned by an “increased production from a strong operating performance together with a higher copper price”.

OZ had provisionally priced 37,000 tonnes of copper at US$9,730/tonne by the end of the quarter, whereas working capital increased by $62 million.

The company also invested $5 million in Carnaby Resources Ltd (ASX: CNB) as part of its exploration strategy.

The Carrapateena site processed 4.6 million tonnes (Mt) while recording the highest production month on record in December, treating 493 thousands of tonnes (kt) of ore in that month alone.

Furthermore, the Prominent Hill site delivered on its production and cost targets as well. OZ says the construction of a hoisting shaft at the site will “extend the mine life to 2036, lowering operating cost, reduces operational risk, and lowers emissions intensity”.

It also enables “generational province potential with further mine life extensions possible as circa 67 million tonnes of resource remain outside the shaft expansion mine plan”.

The company had also anticipated completing study updates for its Carajas East and West hubs. However, it now expects to deliver these updates in 2022.

Management commentary

Managing director and CEO Andrew Cole was positive on the announcement, despite the fall in the OZ Minerals share price. He said:

2021 saw OZ Minerals deliver operationally, despite a challenging environment, again achieving Group production and cost guidance, as well as advancing our growth projects at Carrapateena and Prominent Hill and the West Musgrave study.

We also commenced production at Pedra Branca and declared a maiden Mineral Resource estimate for Santa Lucia, potentially the next satellite mine at our Carajas East hub. However, these achievements were marred by the tragic death of one of our team in September, a Byrnecut underground workforce member at Prominent Hill. We again extend our condolences to his family and friends.

What’s next for OZ Minerals?

In 2022, the company is “committed to safely delivering our operational targets and advancing our growth projects across [its] portfolio”.

It sees 127,000 to 149,000 tonnes of total copper production in 2022 and 208,000 to 230,000 ounces of gold production. Each of these ranges are small downsteps from FY21 guidance.

It also updated average gold production to 90,000 ounces per annum from 2022-25, and adjusted copper production estimates down from 70,000 to 68,000 tonnes per year.

This includes progressing the expansions at Prominent Hill and Carrapateena and continuing to develop opportunities within its Carajas hub strategy in Brazil.

It also hopes to have the West Musgrave project study for a final investment decision in H2 2022.

OZ Minerals share price snapshot

In the last 12 months, the OZ Minerals share price has climbed more than 36%. However, it has struggled this year to date and is down almost 8%. It has also fallen 7% in the past month.

The post OZ Minerals (ASX:OZL) share price slips despite record $2 billion revenue appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares to guide you out of this bloodbath: expert
• Leading brokers name 3 ASX shares to sell today
• Leading fund manager says these blue-chip ASX shares are buys right now
• 6 ASX shares involved with green metals

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. 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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Key points

• The Polynovo share price has slipped more than 30% in the past 2 weeks
• Pressure has been on for the last 12 months, with shares collapsing around 53% in that time
• Consensus price target on Polynovo is $2.21

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After a brilliant start to the year, the Polynovo Ltd (ASX: PNV) share price has slipped more than 30% in the past 2 weeks and now trades near its 52-week lows.

At the time of writing, shares in the medical device company are down less than 2%, trading at $1.24. This comes after it finished the day down more than 7% in the red on Tuesday.

Let’s take a closer look at the performance of the Polynovo share price recently.

What’s going on with the Polynovo share price?

Scoping out a wider time frame, it’s abundantly clear the selling pressure is in lock-step with the long-term downtrend Polynovo has been trading in over the last 12 months.

In that time, shares have collapsed almost 53% and have slid 19% in the last month alone.

But the market activity has been nothing short of bizarre over the last few weeks. Shares exploded vertically on the release of Polynovo’s second quarter and 1H trading update on 11 January, reaching a peak of $1.83.

In its update, the company forecasts US sales of $14 million in the first half, bringing total revenue to $18 million – a 43% year on year growth.

However, within two days following the release, shares had reverted back down towards the mean, and the slide has continued into the open today – with no obvious explanation. There was massive trading volume in Polynovo shares in the days after its update, signalling a potential large sell order executing in that time.

Although, shares in the medical device player are trading down alongside the wider sector, with the S&P/ASX 200 Health Care Index (XHJ) also plunging approximately 12% this year to date.

Not to mention, the benchmark S&P/ASX 200 Index (ASX: XJO) is also down circa 6% since January 1 as well, amid a market-wide selloff in risk assets such as stocks this year.

Hence, Polynovo is underperforming both benchmarks substantially this year to date, as investors seek to reshuffle capital into the more secure pockets of the market. The chart below shows this relative performance since July 2021.

In fact, Polynovo is now trading well below its consensus price target of $2.21 – a 42% discount to its implied fair value.

Sentiment isn’t all that gloomy, however. The team at Macquarie like the long-term growth prospects for Polynovo, especially in regards to its NovoSorb segment.

The company wants to expand into adjacent markets like hernia repair and breast augmentation in order to widen its product offering, especially given the high application to these markets.

Macquarie is constructive on this move and notes this gives Polynovo a total addressable market (TAM) at $7.5 billion per annum – a hefty chunk of market pie to bite into.

Analysts at the firm value Polynovo at $2.85 per share, implying a 126% margin of safety at the time of writing, a substantial growth prospect if the broker’s thesis plays out.

Although, the selling pressure continues en masse this last week. Three trades have surpassed over 100,000 shares per order, and the value of shares traded is well north of $25 million.

Polynovo share price snapshot

In the past month, Polynovo shares have slipped 20% and are now down 14% for the week as well. This year to date, investors have punished the company, with its share price collapsing more than 18% in that time.

The post Polynovo (ASX:PNV) share price melts 31% in 2 weeks. What’s going on? appeared first on The Motley Fool Australia.

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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 POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by 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.

What happened

The strong momentum we saw proliferate in the crypto market Tuesday has boiled over into today’s trading session. Top-10 cryptocurrencies Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) rocketed 5.6%, 10.7%, and 8.7% higher over the past 24 hours, as of 10:15 a.m. ET.

The macro environment for crypto looks to be stabilizing, with the benchmark 10-year U.S. Treasury yield stabilizing (and actually inching lower) today ahead of a key Federal Open Market Committee (FOMC) meeting today. Tech stocks and crypto tokens are each rising ahead of this meeting, with the market betting that the recent hawkish tone of the Fed won’t get too hawkish just yet. 

Forced liquidations have come down considerably from the crypto market turmoil we saw toward the end of last week. For top cryptocurrencies like Bitcoin and Ethereum, this has been a big positive.

Investors in meme token Dogecoin appear to be extending yesterday’s gains, following a tweet from Elon Musk that the self-proclaimed Dogefather would “eat a happy meal on tv” if McDonald’s agreed to accept Dogecoin.

So what

Overall, it appears macro sentiment in the crypto world is finally turning around. Certainly, today’s FOMC meeting and changes in bond yields could impact the demand for high-risk assets, driving more volatility through the back half of this week. We’ve seen correlations between cryptocurrencies and interest rates pick up of late, an interesting phenomenon to watch.

As the world’s largest cryptocurrencies, Bitcoin and Ethereum tend to capture much of the capital that flows from large institutional investors. This recent market volatility appears to have struck a chord with big-time investors, with Bitcoin and Ethereum seeing the bulk of capital outflows in recent weeks.

Dogecoin’s momentum may be near-term in nature, however, investors appear to be betting that given the macro catalysts for this sector, this meme token could go on another run.

Now what

Taking a broad look at the crypto world this week, sentiment is vastly improved over what we’ve seen this year. The overall crypto market has risen approximately 7% at the time of writing, suggesting there are still some investors out there interested in buying this dip.

With much of the speculative fervor seemingly dying out, perhaps this is a consolidation phase that will lend itself well to long-term investors coming in and buying up tokens, stabilizing the supply of these key cryptocurrencies. Or maybe this is but a fleeting moment in a longer “crypto winter.” 

In either case, the crypto world is one that never ceases to provide an interesting narrative. This will be a fun space to watch moving forward. 

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

The post What? 2 days of gains for Bitcoin, Ethereum, and Dogecoin? appeared first on The Motley Fool Australia.

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Chris MacDonald owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin and Ethereum. The Motley Fool Australia owns and recommends Bitcoin and Ethereum. 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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