Tag: Motley Fool

Consumer lobby group Choice has called for contracts for difference (CFDs) to be banned to retail investors.

CFDs effectively bet on the changing value of an asset without actually owning the asset itself. These products, offered by many stockbrokers, can be linked to all sorts of assets — shares, stock market indices, foreign currency, commodities, and now cryptocurrencies.

They are usually highly leveraged, meaning potential losses can be far greater than the initial outlay.

Although they are also used by professionals to hedge risk, they can land inexperienced retail investors in trouble due to the big debts involved.

In a 2020 court case, the Federal Court’s Justice Jonathan Beach criticised the heavy debts in CFDs that entrap “unsophisticated retail investors” seeking “financial heroin hits”.

High pressure sales tactics are also used by some brokers to peddle CFDs to vulnerable consumers.

Ban CFDs to retail investors, simple

The court ruling fined three trading firms for “unconscionable conduct” for aggressively selling CFDs. 

That same year the Australian Securities and Investments Commission (ASIC) moved to place temporary limits on such products.

However, that product intervention order expires in May. Choice is urgently calling on its renewal until 2031, or for an outright ban for retail investors.

“If the order is not renewed, consumers would risk potentially losing billions of dollars in CFD losses as seen in 2020,” read Choice’s submission to ASIC.

“CFD issuers would be allowed to resume unfair trading practices, including being able to sell highly-leveraged financial products to retail consumers.”

Both the United States and Hong Kong have banned the sale of CFDs to retail investors. Other jurisdictions like the United Kingdom have restrictions on what can be offered to everyday consumers.

“Choice believes the sale of CFDs to retail clients has limited, if any, public benefit,” stated the Choice submission. 

“Given the widespread harm identified by ASIC, Choice recommends that the sale of CFDs to retail clients be banned.”

Current restrictions protecting retail consumers

Choice quoted ASIC’s own numbers to demonstrate how effective the temporary restrictions have been:

• 94% drop in retail net losses, from $377 million to $22 million
• 50% drop in average retail account loss from $1,962 to $986

“CFDs are precisely the kind of financial product that should be subject to market-wide product interventions.”

ASIC’s current product intervention order will only be extended with a green light from the federal minister for financial services Jane Hume.

The post ASX retail investors should be banned from ‘financial heroin’: Choice appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher
• 2 ASX 200 shares that could be top buys for growth
• 2022 will be an awesome year for ASX shares: Here’s why
• How much the average Australian investor earned in 2021
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Tony Yoo 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/3zENnB0

The DroneShield Ltd (ASX: DRO) share price is pushing higher during afternoon trade following a business update from the company.

At the time of writing, the defence contractors’ shares are up 5.71% to 18.5 cents. In comparison, the All Ordinaries (ASX: XAO) is down 0.21% to 7,757.8 points.

What did DroneShield announce?

Investors are buying up DroneShield shares after the company reported a record performance for 2021.

In its statement to the ASX, DroneShield advised it achieved $10.5 million in revenue last year. This represents a 94% increase when compared against the prior comparable period (FY20 $5.4 million).

In addition, customer and grant cash receipts totalled $14.8 million in 2021, a 174% growth on 2020 levels.

Notably, the company broke new records, despite COVID-19 continuing to impact business operations. The diversity in receipts primarily came from Australia, the United States, and Middle Eastern customers.

This consisted of payments across multiple product lines such as DroneShield’s $3.8 million contract with the Australian Department of Defence.

In addition, DroneShield is actively engaging in a potential US$55 million contract with a Middle Eastern customer. Although details are sketchy at this point in time on who the deal is for and what it involves.

The company noted that it has over $200 million in its sales pipeline across the globe. This is a small fraction of the total $6 billion addressable market for counter-drone, electronic warfare and signals intelligence products.

DroneShield declared a healthy cash balance of $9.5 million, with no debt.

Management commentary

Speaking on the outstanding achievement, DroneShield CEO Oleg Vornik said:

2022 is shaping as another record year, with over $200m in sales pipeline diversified across geographies and products, underpinned by our talented staff who are global leaders in their respective technology segments.

We have also taken advantage of our supply chain relationships to secure access to material amounts of complex circuit board and other inventory, which serves as a further differentiator to our customers, reducing final product delivery lead times, in the current environment of supply chain disruptions for much of the industry.

Importantly, Software as a Service (SaaS) and, generally, software-related revenues are expected to continue increasing as total percentage of customer cash receipts.

About the DroneShield share price

Over the last 12 months, the DroneShield share price has pushed marginally higher by around 3%.

The company’s shares reached a 52-week high of 22.55 cents in September last year, before treading lower.

At today’s price, DroneShield presides a market capitalisation of around $77.37 million, with approximately 418.23 million shares on issue.

The post DroneShield (ASX:DRO) share price soars 5% on rapid revenue growth appeared first on The Motley Fool Australia.

More reading

• Why the DroneShield (ASX:DRO) share price is lifting 5% today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield 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/3JYNsUE

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.1% to 7,447.7 points.

Four ASX shares that have not let that hold them back are listed below. Here’s why they are charging higher:

AGL Energy Limited (ASX: AGL)

The AGL Energy share price is up 8% to $6.80. Investors have been buying this energy company’s shares after they were upgraded by analysts at Credit Suisse. According to the note, the broker has upgraded the AGL shares to an outperform with a lofty price target of $8.50.

Genetic Signatures Ltd (ASX: GSS)

The Genetic Signatures share price is up 5% to $1.75. This morning the diagnostics company announced that the Therapeutic Goods Administration has registered a saliva-based protocol to collect and test patients for COVID-19 using its flagship 3base EasyScreen SARS-CoV-2 (COVID-19) Detection Kit. Management believes this style of collection will be particularly helpful with Omicron strain.

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price is up 2% to $1.57. This follows news that the lithium developer has awarded a key contract to Metso-Outotec for the design, fabrication, and delivery of a Semi Autogenous Grinding (SAG) Mill for its flagship Kathleen Valley Lithium Project in Western Australia. Management notes that this puts it on course to achieve its target of first production of lithium concentrate in 2024.

Novonix Ltd (ASX: NVX)

The Novonix share price has jumped 11% to $10.38. This morning the battery materials company announced plans for a secondary listing on the Nasdaq index on Wall Street. Novonix hopes that listing on the famous stock exchange will allow US investor and fund managers the opportunity to invest in the growing company.

The post Why AGL, Genetic Signatures, Liontown, and Novonix shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Genetic Signatures (ASX:GSS) share price leaps 6% on COVID test news
• Here’s why the AGL (ASX:AGL) share price is surging 8% today
• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher
• Novonix (ASX:NVX) share price jumps 7% on Nasdaq listing plans
• Buying ASX shares in 2022? Here’s what you need to know: expert

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/3ncIVEt

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.

It’s been a rough couple of months for Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

After reaching record highs in November, both cryptocurrencies have been on a downhill slide. Bitcoin is down more than 36% since its peak, and Ethereum has fallen by nearly 30% since its all-time high.

There are several factors that could be fueling this recent sell-off, including news that the Federal Reserve could raise interest rates in coming months, as well as the recent internet shutdown in Kazakhstan — a key country for Bitcoin mining.

While this drastic drop may be concerning, keep in mind that in some cases, price dips are a smart opportunity to invest more affordably.

Bitcoin and Ethereum are the two most expensive cryptocurrencies, priced at around $41,700 per token and $3,200 per token, respectively. But compared to their all-time high prices of close to $70,000 and $4,900 per token, these cryptocurrencies are essentially on clearance right now.

Does that mean you should stock up on Bitcoin and Ethereum while they’re on sale? Not necessarily. Here’s what you need to know.

Are Bitcoin and Ethereum good investments?

When prices fall during a market downturn, it can be tempting to load up on investments simply because they’re more affordable. But before you buy, it’s important to make sure they’re the right investments for you.

Like all cryptocurrencies, Bitcoin and Ethereum are still speculative — meaning nobody knows for certain how they will perform over the long run. That said, both have strong advantages that could help them succeed over time.

Bitcoin, for example, is designed to be a store of value and an inflation hedge. While the jury is still out when it comes to how effective Bitcoin is at hedging against inflation, as inflation continues to soar, more investors are looking to Bitcoin as a long-term investment. It’s also continuing to gain traction as a form of payment, even becoming legal tender in El Salvador.

Ethereum is also poised for further growth in 2022 as it transitions to its Ethereum 2.0 upgrade, which will make the network faster, more energy-efficient, and more affordable to use. This update will not only make it easier for Ethereum to scale, but it will also help it keep up with younger competitors like Cardano and Solana.

Should you invest right now?

Whether you invest in Bitcoin or Ethereum depends largely on your tolerance for risk. Although this recent slump may seem alarming, it’s not the worst these cryptocurrencies have seen over the years. Bitcoin, for instance, has lost more than 80% of its value in the past, and throughout 2018, Ethereum’s price plummeted by close to 95%.

Volatility like this has become the norm for crypto. While there’s a good chance Bitcoin and Ethereum will survive this downturn, be prepared for more turbulence if you choose to invest. If you’re a risk-averse investor, consider whether you’re comfortable with this level of volatility.

Keep in mind, too, that if you invest, it’s best to hold your investments for as long as possible. In other words, don’t expect to buy now and then sell in a few weeks for a quick profit. Only invest if you plan to hold your investments for at least a few years, if not decades.

Like all investments, Bitcoin and Ethereum have their strengths and weaknesses, and they’re not right for everyone. If you can tolerate higher levels of risk and are willing to hold your investments for the long term despite volatility, they may be a good fit for you. Otherwise, you may be better off waiting for now. 

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

The post Bitcoin and Ethereum are crashing: Is now the time to invest? appeared first on The Motley Fool Australia.

More reading

• The Bitcoin (CRYPTO:BTC) price has tumbled 10% since the start of 2022. Is it a buy?
• This cryptocurrency could 10x by 2026
• Can Ethereum overtake Bitcoin in 2022?
• How the Bitcoin (CRYPTO:BTC) price performed in 2021
• Is dollar cost averaging the way to invest in Bitcoin?

Katie Brockman owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

from The Motley Fool Australia https://ift.tt/3nwFVmL

A new company finalised its initial public offering (IPO) and floated on the ASX this morning, but it’s likely not feeling very welcome.

The Careteq Limited (ASX: CTQ) share price tumbled 25% less than its prospectus‘ offer price on listing.

At the time of writing, the company’s stock is trading at 15 cents apiece – down from its offer price of 20 cents a share.

Let’s take a closer look at what Careteq does and its ASX IPO.

Careteq share price tumbles on float

Careteq debuted on the ASX at 11am AEDT Monday morning.

The company operates in the assisted living technology space, offering software-as-a-service solutions to assist the elderly and those with disabilities.

According to Careteq, its sector is “ripe for a technological disruption” as an ageing population combines with staff shortages and the Aged Care Royal Commission’s recommendations.

Its serviceable addressable global market is expected to be worth US$32 billion a year by 2026, with Australia and New Zealand alone estimated to be worth around $1 billion a year.

Right now, the company offers its products through its Sofihub platform.

Additionally, it’s partnering with the United States-based SiTa Foundation. Together, they plan to develop a safety device to be used to combat domestic violence.

Careteq CEO Peter Scala commented on the company’s future, saying:

As the cost of providing aged and disability care rises, it is our belief that this will prompt government and non-government funders to increasingly turn to assistive living technology solutions, such as ours, to control costs and provide better patient outcomes.

Careteq’s ASX IPO

Careteq’s IPO saw it offering 30 million shares in the company for 20 cents apiece.

By doing so, it raised $6 million, giving it an indicative market capitalisation of $24.7 million at its offer price.

The raised funds will help grow the company and allow it to access cross-selling opportunities.

It will also be put towards the development of new products, features, and applications. Finally, some of the funds will go to the company’s international expansion strategy.

At the time of writing, around 1.8 million Careteq shares – approximately $280,000 worth – have swapped hands on Monday.

The post This ASX share just dived 25% following its IPO. What happened? appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) supply woes continue with retailer receiving half of normal deliveries
• Why you shouldn’t expect the A2 Milk (ASX:A2M) share price to bounce back in 2022
• Why the Accent (ASX:AX1) share price is sinking 6% today
• Genetic Signatures (ASX:GSS) share price leaps 6% on COVID test news
• Is it a buy in 2022? Leading brokers size up the Qantas (ASX:QAN) share price

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

from The Motley Fool Australia https://ift.tt/3f8FwlO

The Woolworths Group Ltd (ASX: WOW) share price is edging lower during early afternoon trade on Monday. This follows the supermarket operator’s latest supply challenges as the COVID-19 outbreak continues to wreak havoc in Australia.

At the time of writing, Woolworths shares are swapping hands for $37.20 apiece, down 0.43%. In contrast, the broader the S&P/ASX 200 Index (ASX: XJO) is trading at 7,448.3 points, slightly down 0.07%.

Woolworths shelves stripped bare

Investors are sending the Woolworths share price into negative territory as more news surrounding the supermarket giant’s dilemmas come out.

The rapid spread of COVID-19 has forced thousands of people to isolate at home whilst waiting for their test results. This has created a huge disruption to Woolworths’ supply chain as a majority of staff are obeying stay-at-home orders. A reported 35% of its distribution centres workers are in self-quarantine.

Notably, Woolworths shelves have been laid bare in stores across the country as a result of the staff shortages. This has resulted in about 50% of delayed deliveries for major product lines.

Management, however, noted that the current supply issues would likely last for the next two to three weeks.

Australian Prime Minister, Scott Morrison stated new measures allowing critical workers to leave quarantine if tested negative is under review. The national cabinet is closely monitoring both New South Wales and Queensland which enacted these changes.

The latest COVID-19 figures have continued to surge to more than 303,800 active cases in New South Wales and 161,050 cases in Victoria. This is a sharp increase from this time last year when the country had been effectively managing the pandemic.

A statement from Woolworths advised that supply issues are greatest in New South Wales stores. Queensland stores are experiencing some disruptions, though they are significantly smaller than those in New South Wales.

In particular, poultry and other meat products are running low due to COVID-challenges faced by suppliers.

Woolworths share price snapshot

It’s been a rollercoaster ride for Woolworths shares over the last 12 months, posting a small gain of almost 5%.

Based on valuation grounds, Woolworths commands a market capitalisation of roughly $45.13 billion and has approximately 1.21 billion shares outstanding.

The post Woolworths (ASX:WOW) supply woes continue with retailer receiving half of normal deliveries appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO): Woolworths withdraws API proposal, tech shares rebound
• If supermarkets are ‘COVID winners’, why is the Woolworths (ASX:WOW) share price sliding into 2022?
• API (ASX:API) share price crashes 12% after Woolworths withdraws takeover offer
• Wesfarmers (ASX:WES) share price higher after receiving API takeover boost
• Leading brokers name 3 ASX shares to sell today

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

from The Motley Fool Australia https://ift.tt/3qaSiXb

At the start of each year, disciples of Michael O’Higgins’ “Dogs of the Dow” strategy will buy many of the worst performing shares on a particular index.

The Dogs of the Dow strategy involves buying 10 of the worst-performing (dividend-paying) shares from the previous year from the Dow Jones Industrial Average at the start of the year. The dividend payment is seen as a sign that the company in question is still financially sound and not about to become insolvent. Some local investors also do the same on the local bourse with the ASX 100 index.

The team at Atlas Funds Management have been looking at the strategy and given their verdict on a few of Australia’s “dogs”.

Firstly, Chief Investment Officer, Hugh Dive, explained why the strategy can work for investors.

He said: “One of the reasons this strategy persists is that institutional fund managers often report their portfolios’ contents to asset consultants as part of their annual reviews. This process incentivises fund managers to sell the “dogs” in their portfolio towards the end of the year as part of “window dressing” their portfolio before being evaluated.”

“Here retail investors can have an advantage over institutional investors. Their lack of scrutiny from asset consultants allows them the flexibility to pick up companies whose share prices have been under pressure late in the year that could see a rebound when the selling pressure stops in January and February,“ Dive added.

Another year to forget for this dog?

One of the dogs of the ASX 100 last year was the A2 Milk Company Ltd (ASX: A2M) share price. It lost over half of its value during the 12 months. And while it doesn’t actually pay a dividend, it appears to have been included due to its ability to pay a dividend if required. The infant formula company is sitting on a mountain of cash but chooses to reinvest it rather than pay a dividend.

Atlas Funds Management isn’t keen on A2 Milk, though. This is because it believes “finding the fallen angel” is best when the “underperformance is due to stock-specific problems rather than macroeconomic issues beyond a company’s control.”

Whereas A2 Milk’s underperformance has largely been driven by regulatory issues in China and falling ecommerce sales. This is not something which the company is able to control, as we have seen over the last 18 months.

All in all, although the A2 Milk share price has sunk lower over the last 12 months, this fund manager doesn’t think investors should bet on it outperforming the market in 2022.

The post Why you shouldn’t expect the A2 Milk (ASX:A2M) share price to bounce back in 2022 appeared first on The Motley Fool Australia.

More reading

• These were the 5 worst performing ASX 200 shares in 2021
• Analysts tip A2 Milk (ASX:A2M) and this share as buys
• Down 50%: Broker tips A2 Milk (ASX:A2M) and this ASX share to rebound in 2022
• In the ‘dog basket’: 6 ASX shares that could rebound in 2022
• The stories that rocked the ASX 200 in 2021 revisited

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 recommended A2 Milk. 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/33bNQyl

The Accent Group Ltd (ASX: AX1) share price is having a tough start to the week.

In afternoon trade, the footwear focused retailer’s shares are down 6% to $2.19.

This leaves the Accent share price trading within sight of its 52-week low of $2.03.

Why is the Accent share price falling?

The weakness in the Accent share price today appears to have been driven by a broker note out of Morgans this morning.

According to the note, the broker has retained its hold rating but trimmed its price target on the company’s shares by 6.5% to $2.40.

Morgans made the move after changing its analyst and adjusting its estimates.

What did the broker say?

The note reveals that Morgans has reduced its earnings before interest and tax (EBIT) estimate for FY 2022.

It now expects EBIT of $97.4 million for the full year, down from $102.1 million previously. This is notably lower than the current consensus estimate of $103.4 million and will be a sizeable decline from FY 2021’s EBIT of $124.9 million.

Most of the damage to its profits is expected in the first half of FY 2022 following lockdowns.

Morgans explained: “We forecast a 53.3% drop in first half EBIT to $38.2m, with the decline mainly a function of the impact of lockdowns and the non-recurrence of the $9m JobKeeper benefit received in the PCP. Our estimate is 19% lower than Visible Alpha consensus ($47.4m with a broad range of $36.5-58.5m).”

Combined with its current valuation, the broker doesn’t appear to believe enough value for money is on offer with the Accent share price at this point.

The broker concludes: “AX1 has a multi-faceted growth strategy, but this is countered by a 23x FY22F P/E ratio, higher gearing than many of its peers, and the reliance on distribution agreements with large third-party suppliers. We rate the stock a HOLD.”

The post Why the Accent (ASX:AX1) share price is sinking 6% today appeared first on The Motley Fool Australia.

More reading

• Top ASX dividend shares to buy in 2022
• Bell Potter names 2 top ASX shares to buy in 2022
• Leading brokers name 3 ASX shares to buy
• Analysts name 2 top ASX dividend shares to buy now
• Top brokers name 3 ASX shares to buy

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 recommended Accent Group. 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/3t94QQD

The Genetic Signatures Ltd (ASX: GSS) share price is on the move today after an update on the company’s COVID-19 test kit.

Shares in the diagnostics company are swapping hands at $1.77 in afternoon trade, up 6.31%.

Let’s take a look at what might be driving this share price increase today.

COVID-19 test update

Genetic Signatures informed the market of an update on the company’s flagship 3base EasyScreen SARS-CoV-2 (COVID-19) Detection Kit.

The company advised that the Therapeutic Goods Administration has registered a saliva-based protocol to collect and test patients for COVID-19 using this product.

Genetic Signature cited a recent study out of South Africa finding saliva swabs may be better than mid-turbinate nasal swabs for detecting the Omicron variant in PCR tests. Saliva has a higher viral RNA load than nasal samples, the company said. However, the company conceded the nasal swab is more effective in detecting the Delta variant.

Speaking on the announcement, Genetic Signatures CEO Dr John Melki said:

Our team is driven to provide our customers with the highest quality tests and are constantly looking at ways to improve our products so they remain effective in detecting pathogens.

We are pleased that this study and subsequent registration has been completed so quickly.

With Omicron becoming the dominant strain of the SARS-CoV-2 virus it is likely that this new methodology will be needed to identify all cases of this new variant.

Genetic Signatures said some of its customers have already adopted the new protocol for testing COVID-19 patients. The company’s COVID-19 detection kit is able to detect all known variants of the virus.

Share price snapshot

The Genetic Signatures share price has fallen in the past year, down 7.8% compared to the same time last year.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is returning roughly 10% in the past year.

The company’s shares have lifted 37% in the past month.

Genetic Signatures has a market capitalisation of around $238.26 million based on the current share price.

The post Genetic Signatures (ASX:GSS) share price leaps 6% on COVID test news appeared first on The Motley Fool Australia.

More reading

• 20% in a week: Here’s why the Genetic Signatures (ASX:GSS) share price soared today

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/3HPIkQZ

Shares in airline operator Qantas Airways Limited (ASX: QAN) are inching higher in afternoon trade today, trading less than 1% in the green at $5.08.

With the concept of international travel gradually returning to be within our grasps, investors haven’t rewarded Qantas in the same way – particularly amid the panic that’s ensued as the latest COVID-19 variants are revealed.

With that in mind, let’s check in and see what’s the outlook for Qantas shares in 2022. The markets are talking, and we are listening. So, is it a buy in 2022? Let’s see what the experts think.

Is Qantas a buy in 2022?

The team at JP Morgan certainly think so. The firm recently advocated Qantas to outperform whilst valuing the company at $6.30 apiece.

Analysts at the firm were upbeat from Qantas’ most recent trading update, and reckon this serves as a good springboard for the company coming into 2022.

Not only that, but JP Morgan “still remain[s] comfortable on the prognosis for a domestic aviation recovery”, even if it trimmed its Qantas valuation by 20 cents in the most recent model update.

In the domestic market, JP Morgan sees capacity guidance of approximately 109% over 2H FY22 as “achievable”, underscored by a recovery in leisure and improving corporate travel over 2H FY22.

In contrast, the broker concedes international travel will take time. It reckons international capacity is set to run at 40-55% of FY19 activity during 2H FY22 and likes the emergence of new “non-stop” long-haul routes to Rome.

In its investment thesis, the broker notes that it sees “QAN as being well positioned, given: 1) it has taken material costs out of its business, ~$1billion p.a. of which are likely to be ongoing savings from FY23; 2) its high proportion of earnings from domestic and loyalty at ~70-75% of earnings; 3) its strong relative balance sheet positioning; and 4) more favourable competitive position – both domestically and internationally”.

Meanwhile, the team at UBS reckons that any potential threats to Qantas from new lockdowns and/or border restrictions are well priced into the share price at its current valuation.

The Swiss broker rates Qantas as a buy as well and reckons the airline is well capitalised and better prepared to deal with any further onslaught from COVID-19.

Not only that, UBS reckons Qantas is cheap at its current levels, trading at an approximate 15% discount to historical averages when comparing to peers.

UBS values Qantas at $6.20 per share and rated it as a buy to clients in an update last month.

In the list of analysts covering Qantas that is provided by Bloomberg Intelligence, 84.6% have the airline as a buy, whereas just 1 firm have it as a hold and sell respectively.

Qantas share price snapshot

Due to several disruptions from the pandemic, the Qantas share price has only managed to climb just over 3% in the last 12 months. However, in the past week shares are again in the green, and are flat on the previous month.

The post Is it a buy in 2022? Leading brokers size up the Qantas (ASX:QAN) share price appeared first on The Motley Fool Australia.

More reading

• Buying ASX shares in 2022? Here’s what you need to know: expert
• How did the Qantas (ASX:QAN) share price perform in 2021?
• Brokers name 3 ASX shares to buy
• Brokers name 3 ASX shares to sell
• How are ASX 200 travel shares faring over the holiday season?

The author has no positions 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/3nb1tF9