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While the market may have recently been trading at a record high, not all shares are faring as well.

For example, the three ASX growth shares listed below are still down significantly from recent highs.

Here’s why analysts think that they could be too cheap to ignore at current levels:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator’s shares are down 20% since this time last year. This has been driven by the company’s underperformance due to inflationary pressures and management’s failure to successfully execute its recovery plans.

The good news is that there are now signs that the company is finally moving on from its issues. This could potentially make it a great time to make a patient investment in the ASX growth share.

Morgan Stanley certainly believes this is the case. It recently put an overweight rating and $68.00 price target on its shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share that could be a bargain buy according to analysts is IDP Education. It is a leading language testing and student placement company with operations across the globe.

The last 12 months have been very turbulent for IDP Education due to the loss of its language testing monopoly in Canada and regulatory changes to student visas in a number of markets. This has led to its shares losing almost 40% of their value since this time last year.

Goldman Sachs believes the selling has been an overreaction and thinks investors should be snapping them up while they are down. Particularly given its belief that IDP Education “is likely to emerge through this period of short-term regulatory tightening with a more diversified business and stronger SP market position to capitalise on the long-term structural growth in international education.”

It is for this reason that the broker has a buy rating and $26.60 price target on its shares at present.

Readytech Holdings Ltd (ASX: RDY)

Another beaten down ASX growth that Goldman Sachs is positive on is ReadyTech. It is a leading cloud-based ATO and ITO-compliant, human resources, payroll, time and attendance, and rostering software provider.

ReadyTech’s shares are down approximately 15% from their recent highs despite its strong performance continuing in FY 2024.

Goldman believes this means that “RDY remains undervalued compared to SaaS peers on an absolute and growth adjusted basis.”

Its analysts currently have a buy rating and $4.25 price target on its shares.

The post 3 beaten down ASX growth shares that could be dirt cheap appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Goldman Sachs says these ASX tech stocks can rise 18% to 30%
• Own Domino’s shares? Today is pay day!
• 3 ASX shares to buy in 2024 and hold for the next 10 years
• Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, Goldman Sachs Group, Idp Education, and ReadyTech. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Idp Education, and ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is having a disappointing finish to the week. In afternoon trade, the benchmark index is down 0.7% to 7,760.9 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising today:

Aurelia Metals Ltd (ASX: AMI)

The Aurelia Metals share price is up 16% to 17 cents. This morning, this gold and base metals company released significant results from its recent exploration programs at the Federation deposit. Management notes that two programs in particular have demonstrated the potential for significant further resource growth at Federation. Chief Development and Technical Officer, Andrew Graham, said: “These discoveries have further substantiated our belief in the significant lateral and depth growth potential at the Federation deposit, as we approach development of first stope ore in Q1 FY25.”

Elders Ltd (ASX: ELD)

The Elders share price is up 2% to $9.81. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has upgraded the agribusiness company’s shares to an outperform rating with an improved price target of $10.45. The broker made the move after boosting its earnings estimates well ahead of consensus expectations due to a better than expected seasonal outlook and higher livestock prices.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is up 3% to $2.27. This follows the release of the fund manager’s latest funds under management (FUM) update this morning. According to the update, GQG’s total FUM increased 4.3% month on month to US$143.4 billion. Management has warned investors not to get too excited. It said: “While we have demonstrated a solid start to 2024, net flows in the first quarter of any given year are influenced by seasonality and we caution against simple extrapolation.” Nevertheless, it believes it is well positioned in the market.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is up 3% to $12.55. This morning, this biopharmaceutical company released its general meeting presentation ahead of the main event. Management commented: “We see rapid growth in our current and near-term commercial products. By the end of 2024, we expect to have multiple commercial products and considerably expanded territory coverage. As part of growing our revenue streams and maintaining our competitive edge, Telix will invest in products, technologies and service enhancements that enable us to expand our indications for use, reach new customers and deliver new clinical differentiation.”

The post Why Aurelia Metals, Elders, GQG, and Telix shares are storming higher today appeared first on The Motley Fool Australia.

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More reading

• Get paid huge amounts of cash to own these ASX dividend shares
• Here are the top 10 ASX 200 shares today
• 7 ASX small-cap shares that are cheaper than the ASX 200 in March 2024
• Why Beach Energy, Elders, Lake Resources, and Premier Investments are rising today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Elders and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Cast your minds back to early 2023. Lithium shares across the ASX were riding high – exemplified by the ASX’s largest lithium stock, Pilbara Minerals Ltd (ASX: PLS), announcing its first-ever dividend payment.

In March 2023, investors received an interim dividend of 11 cents per share (fully franked) from Pilbara Minerals shares. This was a big deal. Dividends from lithium stocks were as rare as hen’s teeth at the time. So investors heralded this payment as a turn of a new leaf for the Australian lithium sector.

Pilbara would go on to pay another final dividend in 2023 – the final payout of 14 cents per share that was doled out in September.

But as we traverse April of 2024, the landscape has tangibly shifted. Most ASX lithium shares, including Pilbara, have had a horrid six months. Between August 2023 and January 2024, the Pilbara share price lost a third of its value.

The back end of 2023 saw lithium prices crater, which dampened investor enthusiasm for this once-hot sector. Just as Pilbara’s maiden dividend seemed to herald a new era for lithium shares, its decision to deny shareholders a third consecutive dividend payment this March epitomised the troubled waters that the sector is navigating this year.

Yes, Pilbara’s February earnings report didn’t contain too many numbers that would get investors excited. The company revealed a 65% drop in revenues to $757 million, as well as a 77% slump in earnings to $415 million. Underlying profits after tax also plunged 78% to $273 million.

So in light of those numbers, it’s perhaps not really a surprise investors weren’t treated to a dividend in the following month.

As such, Pilbara shareholders that have held on through these ups and downs might be wondering when their next dividend might be.

When will Pilbara shares start paying out dividends again?

It’s fairly hard to predict what any company’s future dividends might be, let alone a commodity-based stock like Pilbara. This company’s ability to fund shareholder payouts is almost entirely reliant on the global price of lithium. This, like all commodity prices, is difficult to forecast over a six-month or one-year period.

However, we can look at some expert predictions.

As reported in the Australian Financial Review (AFR) this week, ASX broker Morgan Stanley has done some work on forecasting what the dividends from some of the ASX’s major mining shares over the next year or two might look like.

It’s not pleasant reading for owners of mining shares.

Morgan Stanley estimates that the dividends from big iron miners like Fortescue Ltd (ASX: FMG) and particularly BHP Group Ltd (ASX: BHP) are “at risk” going forward.

But the dividend outlook for Pilbara is even worse. The broker reckons that investors will have to wait until at least 2026 for another dividend. It is predicting the dividend rivers to remain dry over 2024 and 2025, despite the company’s dividend policy of paying out 20-30% of its free cash flow.

This prediction is based upon Pilbara’s ongoing and expensive capital expenditure plans, which Morgan Stanley believes Pilbara will prioritise over dividends amid falling lithium revenues.

As we touched on earlier, these are just predictions. no one knows what PIlbara’s future income payments will look like. But this analysis will no doubt be tough to read for Pilbara investors who have just gotten used to receiving dividends from their shares.

The post When will Pilbara Minerals resume paying dividends? appeared first on The Motley Fool Australia.

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More reading

• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• Are your big ASX 200 mining dividends in for a chop?
• What is the outlook for Pilbara Minerals shares in April?
• Why has the lithium price quietly risen 20% in 2024?
• These are the 10 most shorted ASX shares

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

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Woodside Energy Group Ltd (ASX: WDS) shares are getting some support on Friday, following another lift in global oil prices.

Brent crude oil gained 1.5% overnight to trade for US$90.65 per barrel. That sees the oil price up 19.5% so far in 2024.

In late morning trade, shares in the S&P/ASX 200 Index (ASX: XJO) energy stock are up 0.7%, trading for $30.75 apiece. That compares favourably to the 0.5% loss posted by the ASX 200 at this same time.

So, with oil prices shooting higher, why could the dividends from Woodside shares be facing a potential hit?

Are the dividends from Woodside shares at risk?

Woodside is a popular stock among ASX passive income investors for the outsized, fully franked dividends it has paid out in recent years.

The company’s most recent final dividend of 91.7 cents per share was paid out to eligible investors yesterday.

Atop the interim dividend of $1.243, paid on 28 September, Woodside shares trade on a fully franked trailing yield of 7.1%.

However, trouble could be brewing for the future Woodside dividends following a major political shakeup in Senegal.

The African nation’s newly elected president, Bassirou Diomaye Faye, is casting his eye on the “exploitation” of his country’s national resources.

Faye said (quoted by Reuters):

The exploitation of our natural resources, which according to the constitution belong to the people, will receive particular attention from my government…

I will proceed with the disclosure of the effective ownership of extractive companies [and] with an audit of the mining, oil, and gas sector.

Woodside’s Sangomar project, estimated to cost close to $8 billion, is located in offshore Senegal. The project is forecast to produce 100,000 barrels per day, with the first production still scheduled for 2024.

Woodside’s share of the Sangomar project is 82%. Petrosen, Senegal’s national oil company, owns the other 18%.

Woodside shareholders might take some solace from President Faye’s reassurance that “investor rights will always be protected, as well as the interests of the state and the people”. 

However, Citigroup energy analyst James Byrne believes trouble could be brewing.

He notes that the Senegal government’s ‘take’ under production sharing contracts is currently around 30%. But he believes that could well go up.

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

Oftentimes frontier markets that undertake this sort of a change after an election see the original rhetoric watered down after industry consultation, but ultimately governments secure a bigger share of the pie.

And Bryne warns that could see the dividends delivered from Woodside shares fall off a “cliff” while the company waits for its mammoth Western Australia Scarborough gas project to come online in 2026.

Bryne said:

Our view is that there is a dividend ‘cliff’ coming as Woodside’s earnings decline into 2026 before Scarborough has started and ramped up.

Supposing the government take was 10 percentage points higher at around 40% then the dividend could be up to 20% lower given Sangomar’s contribution in that particular ‘trough’ year for earnings.

So it may exacerbate the dividend cliff that we are already forecasting.

Commenting on the political development in Senegal, a Woodside spokeswoman said, “Our experience has shown that the most successful jurisdictions have been those that work in partnership with industry, respect contract sanctity, and create investment certainty.”

She added, “Woodside looks forward to continuing to work with the government of Senegal to help meet their energy goals.”

Woodside on track for mid-2024 Sangomar first production

Less than six weeks ago, on 13 February, Woodside announced that its Floating Production Storage and Offloading (FPSO) facility had safely arrived offshore of Senegal.

The company said it was a “significant step toward achieving first production from the Sangomar field,” which would bode well for the outlook for Woodside shares and upcoming dividends.

CEO Meg O’Neill said at the time:

The FPSO arrival brings us closer to first production which is targeted for mid-2024. We are proud to be Senegal’s first offshore oil project and firmly believe that this project will prove to be important to Senegal’s future development and prosperity…

The completion of this phase of the project is only possible through strong partnerships with the Senegalese government, joint venture participant Petrosen, and our contracting partners.

Woodside shares are down 2% in 2024, though that doesn’t include the latest final dividend payout.

The post Uh oh! Are Woodside shares facing a ‘dividend cliff’? appeared first on The Motley Fool Australia.

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More reading

• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• Own Woodside shares? Today is payday!
• 5 things to watch on the ASX 200 on Thursday
• After a tepid March can the Woodside share price reignite in April?
• Is now the time to invest in these ASX 200 energy shares?

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

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St Barbara Ltd (ASX: SBM) shares are ending the week with a bang.

At the time of writing, the ASX gold share is up 10% to 21 cents.

This compares favourably to the performance of the ASX 200 index, which is currently down 0.5%.

Why is this ASX gold share soaring?

Investors have been buying St Barbara shares today after the gold miner released its quarterly update.

According to the release, for the three months ended 31 March, Simberi produced 17,257 ounces of gold at an average milled grade of 1.63 g/t Au and gold recovery of 77%. The Simberi operation is the company’s open cut mine in Papua New Guinea.

This quarter’s production is up 33% from 12,969 ounces in the December quarter.

Management notes that mill and rope conveyor availability are yet to reach targeted levels. Nevertheless, as anticipated, its mined grade improved during the quarter as the mine schedule accessed a higher proportion of ore tonnes from the higher-grade zones in the Sorowar pit and reconciled positively.

Total gold sales for the quarter were up 32% quarter on quarter to 18,016 ounces at average realised gold price of A$3,178 per ounce. This equates to total sales of approximately A$57. 25 million for the three months.

This led to the ASX gold share ending the period with total cash of A$218 million. While this is only up a fraction from A$214 million at the end of December, it is worth noting that the gold miner paid down creditors balances in response to improved operating cashflow and the receipt of a tax refund in the Canadian subsidiary.

Commenting on the quarter, St Barbara’s managing director and CEO, Andrew Strelein, said

Simberi again improved during the March quarter with gold production increasing 33% compared to the December quarter. As previously highlighted in the December quarterly report, production guidance for Simberi was weighted to H2 FY24 and we remain on track with this solid quarter.

The ASX gold share is guiding to total gold production of 60,000 ounces to 70,000 ounces for FY 2024. This compares to total production of 40,604 ounces financial year to date.

Going the other way

Heading in the other direction today is Genesis Minerals Ltd (ASX: GMD). It is down 2% at the time of writing.

In May 2023, Genesis Minerals acquired St Barbara’s Leonora assets in Western Australia for A$370 million cash and 152,826,087 Genesis shares.

This deal was designed to create a leading ASX gold house exclusively focused on the prolific Leonora District in Western Australia, with production growth to a sustainable +300,000 ounces per annum.

The post Why is this tiny ASX gold share soaring 10% on Friday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• 2 ASX 200 shares just upgraded by Macquarie
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

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 Scott Phillips.

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While the recent volatility in the tech sector is disappointing, it could be providing investors with an opportunity to pick up some ASX 200 tech shares at attractive prices.

For example, three tech shares that analysts think could offer double-digit returns are listed below.

Here’s why they could be good options for a $2,000 or less investment in the sector:

Life360 Inc (ASX: 360)

Life360 is a technology company aiming to deliver peace of mind for families. Its category leading mobile app and Tile tracking devices help users protect the people, pets, and things they care about most, with a range of services including location sharing, safe driver reports, and crash detection with emergency dispatch.

Its Life360 app certainly is popular. At the last count, the company had a whopping 61 million monthly active users (MAU) located in more than 150 countries. These users are generating significant recurring revenue, which is likely to get even stronger now that management is launching an advertising business.

Bell Potter is a big fan of the company and has a buy rating and $14.50 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

Another ASX 200 tech share to look at for a $2,000 investment is WiseTech Global. It is a leading developer and provider of software solutions to the logistics execution industry globally. Its customer base includes over 17,000 logistics companies across 181 countries. This includes 45 of the top 50 global third-party logistics providers and all the 25 largest global freight forwarders worldwide.

The key product in its portfolio is CargoWise, which allows uses to execute complex logistics transactions and manage freight operations from a single, easy to use platform.

Analysts at UBS currently have a buy rating and $102.00 price target on the company’s shares.

Xero Ltd (ASX: XRO)

Finally, Xero could be another ASX 200 tech share to buy following recent weakness.

It is a global small business platform with approximately 4 million subscribers using its technology for accounting solutions, payroll, workforce management, expenses, and projects.

In addition, Xero has an extensive ecosystem of connected apps and connections to banks and other financial institutions. This gives small businesses access a range of solutions from within Xero’s open platform to help them run their business and manage their finances.

Analysts at Goldman Sachs are feeling very positive about the company’s long-term outlook. As a result, they recently put a buy rating and $152.00 price target on its shares.

The post 3 ASX 200 tech shares to buy now with less than $2,000 appeared first on The Motley Fool Australia.

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More reading

• COVID’s lasting impacts for shares vs. property: AMP economist
• Why are ASX tech shares rebounding strongly on Thursday?
• 3 Australian shares quietly crushing the ASX this year
• 3 ASX growth shares to supercharge your investment portfolio returns
• 3 ASX shares boasting better revenue growth than Tesla

Motley Fool contributor James Mickleboro has positions in Life360 and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Capricorn Metals Ltd (ASX: CMM) shares are under pressure on Friday.

In morning trade, the ASX 200 gold mining share is down 7% to $5.08.

Why is this ASX 200 mining share sinking?

Investors have been heading to the exits today for a couple of reasons.

The first is broad market weakness, which has seen mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) tumble into the red today.

The second is the release of the ASX 200 mining share’s quarterly update.

How did the company perform during the quarter?

According to the release, the Karlawinda Gold Project (KGP) in Western Australia achieved 26,017 ounces of gold production for the March quarter.

This is down 14.5% from 30,399 ounces in the December quarter due to the negative impacts of heavy rainfall. Management highlights that there was in excess of 280mm of rain in the quarter impacting open pit mining activities at KGP.

Positively, though, this production was in line with an update provided last month warning about the weather impacts.

Gold production for the nine months to the end of March was 86,116 ounces.

Cash balance grows

The ASX 200 mining share advised that its cash and gold on hand continued to increase during the quarter despite some investments.

Capricorn Metals’ cash and gold balance stood at $177.8 million at the end of March, up from $160.1 million at the end of December. This includes the payment of $9.9 million for the supply and installation of the accommodation village at the Mt Gibson Gold Project.

This means a cash build of $27.6 million for the three months before the discretionary capital expenditure, compared with $28.2 million for the December quarter.

Guidance downgraded

The main drag on its shares today has been management downgrading its FY 2024 production guidance.

Gold production for the June 2024 quarter is expected to be in the range of 26,000 to 29,000 ounces, resulting in FY 2024 annual production of 112,000 to 115,000 ounces. This is down from its FY 2024 guidance of 115,000 to 125,000 ounces.

No details have been provided for its FY 2024 all-in sustaining cost (AISC) guidance. This presumably remains at the upper end of guidance range of $1,270 to S1,370 per ounce.

The good news is that it is expected that earthmoving will be back in line with the mining schedule by the end of the quarter to set the project up for a strong operational performance in FY 2025.

Commenting on the quarter and its outlook, the ASX 200 mining share’s executive chairman, Mark Clark, said:

It was a challenging quarter at the KGP with significant rainfall impacting mining operations and gold production. However, it was pleasing that despite these impacts the operation delivered a cash and gold build of $27.6 million for the quarter before the discretionary capital spend at Mt Gibson. The residual effects on mining productivity are still being felt and will be our key operational focus in the June quarter to set the project up for a strong operational performance in FY25.

The post Why is this ASX 200 mining share sinking 7% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• If you’d put $20,000 in this ASX 200 mining stock 5 years ago, you’d have $278,000 now

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 Scott Phillips.

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After setting a series of new all-time highs in March, April is offering a more difficult first week for the S&P/ASX 200 Index (ASX: XJO).

In this shortened holiday trading week, the benchmark index closed down 0.1% on Tuesday before plunging 1.3% on Wednesday.

Yesterday saw a reprieve, with the index closing up a healthy 0.5%, bringing it back to a 12.9% six-month gain.

So, why is the ASX 200 reversing course again and tumbling 0.9% in morning trade today?

What’s spooking ASX 200 investors on Friday?

It’s not just the ASX 200 under selling pressure today.

Overnight the S&P 500 Index (SP: .INX) closed down 0.2%. Notably, the S&P 500 was well into the green for most of the day, before plummeting 1.8% in the final two hours of trade.

It was a similar picture on the Nasdaq Composite Index (NASDAQ: .IXIC). The tech-heavy index lost 2.3% in the final two hours of trade to close the day down 1.4%.

And the ASX 200 is facing the same combination of headwinds today that dragged down US markets while most of us were asleep.

Interest rates and inflation

The first bugbear dragging on stock markets is becoming a familiar refrain for ASX 200 investors.

Namely sticky inflation and the resulting potential of delayed and fewer interest rate cuts.

The latest round of jitters looks to have been stoked by US Federal Reserve Bank of Minneapolis president Neel Kashkari.

Kashkari said the US’ inflation data in January and February were “a little bit concerning”. He added that the Fed will want to be more confident inflation is on track to return to its 2% target range before lowering interest rates.

And he likey sent US and ASX 200 investors to their sell buttons when he added that rate cuts might not be needed “at all“.

According to Kashkari (courtesy of Bloomberg):

In March I had jotted down two rate cuts this year if inflation continues to fall back towards our 2% target. If we continue to see inflation moving sideways, then that would make me question whether we needed to do those rate cuts at all.

ASX 200 and the Middle East

Atop fears that interest rate cuts may be longer in coming and fewer in number, ASX 200 investors also appear concerned over a potential serious escalation in the Middle East conflicts.

Commenting on the sudden retrace in US stock markets earlier today, National Australia Bank Ltd (ASX: NAB) said (quoted by The Australian Financial Review), “US equities opened higher and retained their initial gains until an hour or so ago.”

NAB continued:

Sentiment was dented following news of a security cabinet meeting in Israel following which Israeli Prime Minister Netanyahu said that his country will operate against Iran and its proxies and will hurt those who seek to harm it.

And if investors need any more uncertainty, there’s the US jobs report, which comes out at 11:30am AEDT today.

US employment is broadly expected to remain strong with fewer layoffs and more hirings. If the data surprises to the upside, it could be a case of ‘good news is bad news’. Meaning good news for the US economy and workforce could delay any Fed rate cuts.

And that could throw up another medium-term headwind for US stocks and the ASX 200.

The post Why is the ASX 200 ending the week with a whimper? appeared first on The Motley Fool Australia.

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

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The market may be falling today, but that hasn’t stopped Biotron Ltd (ASX: BIT) shares from rocketing.

In morning trade, the ASX healthcare stock is up almost 50% to 11 cents.

Why is this ASX healthcare stock rocketing?

Investors have been scrambling to buy the antiviral therapies developer’s shares this morning after it released an update on its Phase 2 study of BIT225.

BIT225 is Biotron’s lead compound. It is in Phase 2 development for the treatment of HIV-1 and Hepatitis C virus infections.

According to the release, preliminary analyses of data from the BIT225-010 Phase 2 clinical trial provide confirmation, and extension, of the results of previous trials in people infected with HIV-1.

The ASX healthcare stock explained that the double-blind placebo-controlled Phase 2 trial was designed to characterise the effect of BIT225 (200 mg, once daily for 24 weeks) added to a standard of care antiretroviral therapy (cART) in 27 treatment naive people infected with HIV-1. This comprises 18 using BIT225 and 9 using a placebo.

Study participants were followed for a one-month period following 24-weeks of BIT225 or placebo dosing, with all individuals continued on cART as per standard treatment guidelines post-study.

Preliminary analysis of the safety data has shown that BIT225 was safe and generally well tolerated at the 200mg once daily dose, with no deaths or drug-related serious adverse events.

As for efficacy, preliminary analyses of the HIV-1 plasma viral load (pVL) data suggest that the addition of BIT225 to cART results in a more rapid reduction in plasma virus levels during the second phase of viral decay, compared to cART alone.

Furthermore, preliminary analyses of blood immune cell populations showed changes in specific immune cell populations in the BIT225 group compared to cART alone.

Management commentary

The ASX 200 healthcare stock’s managing director, Dr Michelle Miller, was pleased with the trial results. She said:

The positive outcomes from this trial further our understanding of BIT225. The blood (plasma) viral load data in particular should be highlighted, as it suggests that BIT225 is having an impact on a critical phase of viral decay when latent reservoirs are established. Current cART is efficient at rapidly and durably reducing virus levels in the blood, but this does not translate into clearance of latent reservoirs.

The observed changes to immune markers and cells further the results from the previous 009 trial and suggest the utility of targeting viroporins as a new class of antiviral drugs. The results reported here are preliminary, and ongoing analysis of the BIT225-010 study, as well as its companion study, BIT225-011 in HIV-1 chronically infected individuals, will be reported when complete.

The post Guess which ASX healthcare stock is rocketing almost 50% on Friday appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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ASX growth stocks that have fallen heavily in value can be attractive opportunities, in my opinion.

The more a share price falls, the bigger potential there is to make returns from a possible recovery. For example, if a company’s share price falls 50% from $20 to $10, simply returning to $20 again would be a return of 100%.

Of course, we need to keep in mind that a share price isn’t going to go back up just because it has fallen. A bear market can be a good time to find opportunities that have been sold in a widespread panic because the long-term outlook for that business may still be very positive.

The ASX tech share Frontier Digital Ventures Ltd (ASX: FDV) is down 65% from its peak in November 2021. I think it has very appealing prospects as an investment for a few different reasons.

Digital adoption tailwinds

Frontier Digital Ventures invests in leading online classifieds marketplaces in emerging regions, such as South America, the Middle East and Asia.

The ASX growth stock says that online classifieds marketplaces (like property, cars and general marketplaces) have “significant leverage to population and economic factors, with emerging markets amplifying the opportunity”.

The total population of the markets in which Frontier Digital’s investments operate is 882 million, which is 34 times the population of Australia. The markets have a growing middle-class and urban population.

The internet ‘penetration’ within the company’s regions rose to 68% in 2023, up from 62% in 2022. This statistic may never reach 100%, but I think there’s plenty more potential growth as more people start using the internet for more services.

Operating leverage

The ASX growth stocks’ investments have already built their platforms. Additional users, new subscriptions or more volume can help ramp up profit margins because the business is spreading largely fixed costs across more customers.

One of the strongest benefits of technology businesses is how cheap it is to create an additional piece of software for another customer – tech companies can typically have an attractively high gross profit margin.

A company like REA Group Limited (ASX: REA), for example, has shown the underlying potential of an online business to generate stronger margins over the long term as it scales.

Increasingly profitable

I think it’s an important milestone when a technology company can reach profitability after a long period of investing.

Frontier Digital Ventures recently reported a number of positives in its 2023 full-year result.

The ASX growth stock’s 2023 statutory revenue increased by 15% to A$67.9 million, statutory earnings before interest, tax, depreciation and amortisation (EBITDA) grew $8.3 million year over year to $3.7 million, and the 2023 second half net profit after tax (NPAT) was A$1.3 million compared to a net loss of $9.9 million in the first half of 2023.

With strong tailwinds (like digitalisation) in the regions it invests in, I think this ASX growth stock has an appealing, profitable future. The more profit it can make, the easier it will be for investors to value the business and recognise the full potential of the company.

The post 1 ASX growth stock down 65% to buy right now appeared first on The Motley Fool Australia.

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More reading

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• Want an income boost? Buy ANZ Bank and these ASX dividend stocks

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 positions in and has recommended Frontier Digital Ventures and REA Group. The Motley Fool Australia has recommended Frontier Digital Ventures and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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