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Shares in payment solutions company Tyro Payments Ltd (ASX: TYR) opened the week down and are now inching more than 2% lower at $2.57.

Tyro has been on an extended run downwards these past 3 months, with shares collapsing from a high of $4.12 last November.

In today’s session, Tyro provided a glimpse of its weekly transaction value updates until 7 January 2021 in keeping with prior commitments. The company had pledged to share this data until the publication of its full year results for FY22. Here are the details.

What’s up with the Tyro share price today?

Tyro shares are walking lower today despite the company demonstrating a positive gain in transaction value across all time frames since the onset of FY22.

So far in FY22, the company has grown transaction value more than 20% year on year in every single month until January.

The highest growth period came in November last year, with the company securing $3.095 billion in transaction value, a 43% gain from the year prior. December transaction value was also 35% higher than the same period in FY20.

As of 7 January 2022, the company boasts $16.371 billion in transaction value, a considerable 31% year on year gain from FY21.

This is already 64% of FY21’s total of $25.454 billion even though we are still in the first month of the fiscal year.

Even though the announcement exhibits a number of positive factors to Tyro’s growth narrative today, the market has disagreed, amid a broad-sector selloff in ASX tech shares that’s been in situ since November.

The yield on the benchmark 10-year US Treasury note recently touched 1.8%, its highest mark since the pandemic wreaked havoc on fixed income markets. It is currently a few ticks down at 1.76%.

As the US Fed positions itself to tighten monetary policy by tapering its quantitative easing (QE) programs this year, the markets are pricing in no less than 3 rates hikes throughout 2022, according to equity strategists Yardeni Research, Inc.

Rising yields on US Treasuries is a negative for valuations on assets like stocks, and the impact is disproportionate to unprofitable tech companies like Tyro that may also be trading at a premium.

As such, investors are leaning away from growth-type stocks and rotating towards more value-orientated or defensive positions, explaining the downside move in the ASX tech basket lately.

The stress appears to have continued this week for ASX tech shares like Tyro who rely on a bottom-heavy US 10-year yield to justify trading at such lofty valuations.

Tyro share price snapshot

The Tyro Payments share price has plunged almost 22% in the last 12 months after sliding more than 9% in the previous month alone.

Year to date it has fallen another 10% and the weakness has continued this past week with shares giving away another 10%.

Each of these results is behind the S&P/ASX 200 Index (ASX: XJO)’s gain in the last year.

The post Why is the Tyro (ASX:TYR) share price tumbling today? appeared first on The Motley Fool Australia.

More reading

• Brokers say these 2 top ASX shares are buys in 2022
• Could 2022 be the year ASX 200 tech shares get some love?
• Down 25% in six months, is the Tyro (ASX:TYR) share price now a bargain buy?

The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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 Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small decline. The benchmark index is currently down 0.1% to 7,445.7 points.

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

AGL’s shares shoot higher

The AGL Energy Limited (ASX: AGL) share price has been a very strong performer on Monday. Its shares are shooting higher after reportedly being upgraded by analysts at Credit Suisse. According to the Australian, the broker has upgraded the energy retailer’s shares to an outperform rating from neutral.

Pro Medicus shares upgraded

Another share that has been upgraded today is Pro Medicus Limited (ASX: PME). Less than a week after downgrading the health imaging technology company’s shares to a reduce rating, Morgans has upgraded them to a hold rating. Morgans made the move after a sizeable selloff last week post-downgrade left its shares trading at a fairer level. This hasn’t stopped the Pro Medicus share price from sinking today.

Novonix aiming to join the Nasdaq

The Novonix Ltd (ASX: NVX) share price is surging higher today after announcing plans for a secondary listing on the Nasdaq index on Wall Street. The battery materials company hopes that listing on the famous stock exchange will allow US investor and fund managers the opportunity to invest in the growing company.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the AGL share price with a 7.5% gain following the aforementioned broker note out of Credit Suisse. The worst performer on the index has been the Reliance Worldwide Corporation Ltd (ASX: RWC) share price with a 4.5% decline. This is despite there being no news out of the plumbing parts company.

The post ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Pro Medicus (ASX:PME) share price?
• Novonix (ASX:NVX) share price jumps 7% on Nasdaq listing plans
• 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

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 Pro Medicus Ltd. and Reliance Worldwide Corporation Limited. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Reliance Worldwide Corporation 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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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.

Fantom (CRYPTO: FTM) is under the radar right now, but probably not for long. The crypto had an amazing run-up last year. The coin sold for $0.02 a year ago. Now it’s trading at $3 a coin.

Fantom is jumping because it’s a layer 1 protocol with super-fast speeds, like Solana (CRYPTO: SOL). In 2021, those two coins skyrocketed in value 14,000% and 11,000%, respectively. Fantom is a lot smaller with a market cap of $7 billion versus $43 billion for Solana. I think part of that discrepancy is because Solana, unlike Fantom, can be bought and sold on Coinbase (NASDAQ: COIN), the biggest crypto exchange. (You can buy the coin on another exchange, Gemini.)

I’m expecting the smaller coin to outperform Solana yet again in 2022. Here’s why you might want to own Fantom coin.

1. It might be the fastest blockchain out there

Last year the crypto markets went crazy for Ethereum (CRYPTO: ETH) competitors. Ethereum is the major platform for the crypto universe. But interest in crypto is skyrocketing, and the Ethereum network is creaking under the strain. The “gas fees” (the cost of validating a transaction on the Ethereum blockchain) hit $300 at one point. In comparison, a transaction on Fantom or Solana costs a fraction of a a penny.

Why are the fees so cheap? Speed. Solana averages 50,000 transactions per second, versus 14 per second on Ethereum. Fantom is not as fast as Solana, but it’s still way ahead of Ethereum; in a test run back in 2018, its blockchain processed 25,000 transactions per second. But Fantom has a pretty solid claim to being the fastest blockchain if you look at time to finality. This is arguably the most important statistic, as that’s the moment when a transaction has been fully validated on the chain. Fantom’s time to finality is about a second, versus 13 seconds on Solana and more than a minute on Ethereum.

Fantom is also rocking the total number of transactions on the blockchain. A year ago, Fantom averaged of 4,000 transactions a day. Now the network is averaging 750,000 a day. That’s an amazing growth rate. Fantom is already fifth in the number of transactions, and it has zoomed past much bigger coins like Avalanche (CRYPTO: AVAX). 

2. It’s compatible with Solana and Ethereum

One of the challenges in the blockchain universe is compatibility. It can be hard to move a virtual wallet from one blockchain to another. So in the blockchain universe — like Silicon Valley — a lot of these blockchain networks are frenemies. They’re all competing and want to win. But they also must play nice and work together.

Fantom, like most Ethereum competitors, is compatible with the Ethereum Virtual Machine (EVM). This makes it easier for engineers experienced with Ethereum to develop decentralized apps (dApps) for the Fantom blockchain. And it makes it easy for dApps on the Ethereum blockchain to migrate to the Fantom blockchain to save money. 

Solana is something of a maverick in that it’s not Ethereum compatible. That puts its blockchain outside the Ethereum universe. But what’s fascinating is that Fantom is also in the Solana ecosystem. That flexibility is a strength. Regardless of who comes out on top, Ethereum or Solana, Fantom should be just fine because it’s compatible with both systems.

3. Major players are backing the coin

If you’ve done any crypto investing, you’ve probably heard of Sam Bankman-Fried. He’s No. 58 on the Forbes 400 list with a net worth of $26 billion, making him the richest crypto magnate on the list. 

Bankman-Fried made a lot of money by starting up the crypto trading exchange FTX (CRYPTO: FTT). But he’s also a notable (and early) investor in Solana. Bankman-Fried once got in a Twitter fight over the price of the coin. He and a Twitter user named CoinMamba debated the worth of the Solana coin at $2, $2.05, and $2.38. Finally, on Jan. 9, Bankman-Fried tweeted, “I’ll buy as much SOL has you have, right now, at $3. Sell me all you want.” The tweet became famous as the coin skyrocketed to $149 by the end of the year.

Bankman-Fried is also a major backer of Fantom. His firm, Alameda Research, bought $35 million in Fantom coin back in February. This happened at the same time that Fantom started to integrate its blockchain with the Solana network.

While Bankman-Fried might be the richest backer of Fantom, the most important is probably Andre Cronje. He’s the founder of Yearn Finance (CRYPTO: YFI) and is one of the architects of the decentralized finance (DeFi) revolution. Cronje is a technical advisor to Fantom and helped develop its blockchain. He’s already created a non-fungible token (NFT) marketplace on Fantom that’s a direct competitor to OpenSea, the largest NFT marketplace. Cronje is also working on a secret project to be released on the Fantom blockchain later this year.

Given its support by major players in the industry, its amazing speed and stratospheric growth rates, and its low valuation versus other major coins, Fantom’s crypto is likely to soar even more in 2022. While it probably won’t repeat the 14,000% growth of last year, the upside potential here is still very high. I own this coin and I’m buying more. 

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

The post Could this crypto be the Solana of 2022? appeared first on The Motley Fool Australia.

More reading

• Can these 3 ‘Ethereum Killers’ actually kill Ethereum in 2022?
• Why Solana jumped 17% today
• What crypto investors should know about these ‘Ethereum killers’
• 4 cryptocurrencies that turned $10,000 into $1 Million (or more) in 2021

Taylor Carmichael owns Coinbase Global, Inc., Fantom, and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Coinbase Global, Inc., Ethereum, Twitter, and Yearn.finance. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The upper management of James Hardie Industries (ASX: JHX) has been in turmoil over the last two sessions.

The company’s now-former CEO Jack Truong was shown the door on Friday amid continued employee complaints about his behaviour. He has reportedly spoken out on his sacking this morning, disputing the company’s claims.

In more positive news, James Hardie’s leadership team has welcomed a new face today.

At the time of writing, the James Hardie share price is $51.305, down 0.46% from its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.07% this morning.

Let’s take a closer look at what’s going on with the building products company.

What’s the latest on James Hardie’s leadership spill?

The James Hardie share price suffered on Friday after the company announced it sacked its CEO following complaints of Truong’s conduct despite him being provided “support for sincere change”.

According to reporting by Reuters, “dozens” of the company’s executives had threatened to leave their positions as a direct result of interactions with Truong.

Truong had held the top position since early 2019.

Today, the former CEO disputed claims his management style was “intimidating [and] threatening”, according to reporting by the Sydney Morning Herald.

The publication quoted Truong as saying he was “blindsided by the termination” and he “unequivocally reject[s] the assertions made by [James Hardie chair] Mr Hammes and the company”.

Harold Wiens has been appointed as interim CEO of James Hardie in the wake of the drama. Wiens has sat on the company’s board since May 2020.

There was also another appointment announced today, with the company welcoming a new chief technology officer (CTO).

Dr Joe Liu has taken the position after spending 26 years with 3M Company. There, Liu held roles in research and development, as well as in commercial and international management.

According to James Hardie, he will use his knowledge to commercialise new products for the company.

Right now, the James Hardie share price is 4.56% lower than it was at Thursday’s close. Though, it’s still 39% higher than it was this time last year.

The post James Hardie (ASX:JHX) management shakeup continues. Here’s what you should know appeared first on The Motley Fool Australia.

More reading

• Why API, James Hardie, Magellan, and St Barbara shares are dropping
• ASX 200 (ASX:XJO): Woolworths withdraws API proposal, tech shares rebound
• James Hardie (ASX:JHX) share price on watch after CEO kicked out

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

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The CV Check Ltd (ASX: CV1) share price is surging forward on Monday following the company’s latest flash update.

At the time of writing, the online integrated screening and verification company’s shares are up 6.90% to 15.5 cents.

How is CV Check performing in FY22?

Investors are sending the CV Check share price higher after the company reported robust numbers for the FY22 period.

According to its release, CV Check advised it has achieved revenue of $6.5 million for the December quarter (Q2 FY22). This represents an 83% increase on the prior corresponding period ($3.5 million).

When factoring in Q1 FY22 revenue, CV Check has generated total revenue of $12.8 million for the first-half of FY22. Again, this is a significant rise of 84% when compared against the first-half of FY21.

Furthermore, consolidated revenue included $1.2 million in Software-as-a-Service (SaaS) revenue in the form of licence and consulting fees.

During the first-half, the company focused on completing the integration of Bright People Technology, which it bought for $1 million.

CV Check noted that its cash flow from operations was positive, and it is well-positioned for a bumper second-half. This is regardless of the repeated lockdowns and economic uncertainty that COVID-19 has caused.

At the end of the 2021 calendar year, CV Check recorded a closing cash balance of $12.2 million.

CV Check CEO, Michael Ivanchenko, said:

The completion of the integration of Bright People Technologies and the commencement of execution of the company CGI (Consolidate the base, Grow new markets and Innovate) strategy is showing results.

We continue to see strong growth in the pre-employment screening market through our returning business customers utilising more of our screening services including our Covid Vaccination checks.

We are experiencing unprecedented interest in our SaaS real-time compliance monitoring product, Cited, and progress continues on key innovations which we look forward to announcing soon.

About the CV Check share price

Despite today’s ascent, the CV Check share price has moved in circles throughout the last 12 months. Its shares have posted a loss of around 17% over the period, with year-to-date currently down 6%.

CV Check has a market capitalisation of roughly $63 million, with approximately 434.54 million shares on its books.

The post CV Check (ASX:CV1) share price leaps 7% as revenue surges appeared first on The Motley Fool Australia.

More reading

• James Hardie (ASX:JHX) management shakeup continues. Here’s what you should know
• What went wrong for the Aurizon share price (ASX:AZJ) in 2021?
• Why the CBA (ASX:CBA) share price jumped 23% in 2021
• Why is the Carnaby Resources (ASX:CNB) share price melting 22% today?
• What’s impacting the Fortescue (ASX:FMG) share price on Monday?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check Ltd. 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 Aurizon Holdings Ltd (ASX: AZJ) share price finished in the red in 2021 after a roller-coaster year.

Shares in the rail freight operator fell from $3.91 to $3.49 during the year, shedding 10.74%. For perspective, the S&P/ASX 200 Index (ASX: XJO) gained around 13%.

Let’s take a look at what contributed to this fall in 2021.

What happened to the Aurizon share price last year?

Aurizon’s share price had a few major bumps and drops in the first 10 months of the year, before a dramatic collapse in October. By the end of December, the company’s share price had partially recovered some of that loss.

Aurizon transports about half the country’s coal exports. The company carried 202 million tonnes of the commodity in the 2021 financial year.

The Aurizon share price gained 9.4% between market close on 4 February and 16 February. Investors reacted positively to news the Foreign Investment Review Board had approved Aurizon’s sale of the Acacia Ridge Terminal to Pacific National. The company’s half-year results also saw Aurizon’s bulk business earnings before interest, tax, depreciation and amortisation (EBITDA) up 27% to $140 million.

A major dip took place between 15 April and 19 May. In that week Aurizon shares fell nearly 13%, despite no price-sensitive news from the company. However, quarterly above rail volumes released by the company on 21 April showed the quarter ended March coal volumes were down 6% due to less customer demand.

In August, Aurizon shares reached a 52-week high of $4.13. Impacting investor sentiment may have been an outperform rating and $4.32 price target issued by Macquarie. Shares then fell on the back of the release of Aurizon’s full-year results, showing a 1% revenue drop in FY21. Morgan Stanley also lowered its price target on Aurizon shares to $3.92.

Off the rails

But the most dramatic fall for the company took place between market close on 21 October and 29 October, when shares fell 13% in eight days. This was despite Aurizon signing an agreement with Macquarie Group Ltd (ASX: MQG) subsidiary Macquarie Asset Management to take over One Rail Australia for $2.35 billion.

However, during the same timeframe, the price of coal dropped from US$228.50 per tonne to $143 per tonne.

Finally, the Aurizon share price soared nearly 7% from $3.32 to $3.55 between market close on 6 December and 30 December. That was despite no news from the company. It was likely coal prices were again impacting investor sentiment. During this time, coal jumped from US$122.20 per tonne to $130 per tonne, up 6.3%.

Foolish takeaway

While the Aurizon share price had a 2021 to forget, investors have seen gains in the past month.

Since this time last month, the company’s shares have risen nearly 8%, while they are up nearly 5% this past week. At the time of writing, Aurizon shares are trading at $3.66, up 0.27% today.

The company has a market capitalisation of roughly $6.7 billion based on its current share price.

The post What went wrong for the Aurizon share price (ASX:AZJ) in 2021? appeared first on The Motley Fool Australia.

More reading

• Could the Aurizon (ASX:AZJ) share price be in for more pain in 2022?

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 Aurizon Holdings Limited and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Commonwealth Bank of Australia (ASX: CBA) share price was on form in 2021 despite an end of year blip.

Over the 12 months, the banking giant’s shares rose by a sizeable 23%.

Why did the CBA share price charge higher in 2021?

Investors were buying CBA and other bank shares last year after they returned to form in FY 2021 following a difficult time a year earlier because of the pandemic.

For example, for the 12 months ended 30 June, Australia’s largest bank revealed a 19.8% increase in cash earnings to $8,653 million. This was notably better than the analyst consensus estimate of $8,464 million.

This strong result was driven by growth across business lending, home lending, and household deposits. CBA revealed that business lending grew over 3x system, home lending was 1.2x system, and household deposits grew 1.2x system.

In addition, the bank finished the period with a very strong balance sheet and capital position. This allowed CBA to declare a fully franked final dividend of $2.00 per share, bringing its full year dividend to $3.50 per share. This was a 17% increase year on year.

But it got better for shareholders. In addition to the final dividend, the bank announced a $6 billion off-market share buyback. Once again, this was also ahead of the market’s expectations.

Commonwealth Bank’s Chief Executive Officer, Matt Comyn, commented at the time: “Strategic divestments have generated $6.2 billion in excess capital since 2018. Today we have announced an off-market buy-back of up to $6 billion of CBA shares as the most efficient and appropriate way to commence the return of surplus capital, as shareholders will benefit from a lower share count that will support return on equity and dividends per share.”

What’s next in 2022?

Opinion remains divided on the CBA share price at the current level.

In one corner you have the bears at Morgans that believe it could fall to $73.00. In the other corner, there are the bulls at Bell Potter with their buy rating and $111.00 price target.

Time will tell which broker makes the right call on the CBA share price.

The post Why the CBA (ASX:CBA) share price jumped 23% in 2021 appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX 200 dividend shares to buy
• Top brokers name 3 ASX shares to sell next week
• Experts tip the ASX sectors that are set to outperform in 2022
• Here’s why CBA (ASX:CBA) shares have the lowest big four bank dividend right now
• Does the prospect of higher rates make ASX 200 bank shares more attractive?

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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The Carnaby Resources Limited (ASX: CNB) has taken a dive in early trading, amid the company announcing further drill results from its Greater Duchess Copper-Gold Project in Mt Isa, Queensland.

Assay results from a drilling regime at its Nil Desperandum prospect, located at Greater Duchess, confirms a broad high-grade copper-gold discovery at the site.

Whilst the announcement is touted as a positive by the company, the market has disagreed with its assessment.

At the time of writing, Carnaby shares have dropped 22.46% after haemorrhaging soon after the open today.

Why is the Carnaby Resources share price falling today?

The company advised of several assay results and investment highlights from the Nil Desperandum prospect in its release today.

It announced assay results from hole NLDD042 showed an intersection of 60.3m @ 0.9% copper, 0.1g/t gold from 256m and 3m @ 1.1% copper, 0.2 g/t gold from 238m.

Carnaby says the result from RC diamond hole NLDD042 confirms “the excellent continuity of the main high-grade breccia shoot directly down plunge from the previously reported drill hole NLRC017 which intersected 87m @ 0.9 % copper including 30m @ 1.8% copper” back in July 2021.

The intersection in NLDD042 is approximately 80m along strike from the recent spectacular copper results at another hole which remains “completely open down and up dip and down plunge to the southwest”.

It also notes that results from numerous other holes drilled at the end of 2021 at Nil Desperandum, Lady Fanny, and Burke & Wills prospects are also on the way.

As such, follow up exploration is being “rapidly escalated with extensive IP surveys and multiple drill rigs to commence this month”.

The company notes that extensive infill and extensional drilling is required to confirm the orientation and true width of the mineralisation intersected to date. It is also required to quantify the magnitude of the discovery, according to the announcement.

Carnaby also advised that “major new tenement applications targeting the southern continuation of a strong structural corridor to the south of Nil Desperandum” have increased landholdings by 638 km2 at Greater Duchess to 1,022 km2.

Management commentary

Speaking on the announcement, Carnaby Resources Managing Director, Rob Watkins commented:

NLDD042 has confirmed the strong continuity of the broad high-grade Nil Desperandum breccia which has been traced for over 500m and getting bigger and better at depth. We look forward to receiving more results shortly and the imminent start of 2022 exploration. We are also highly excited about the regional upside potential of the extensive new land tenure announced today.

Despite the weakness today, the Carnaby Resources share price remains one of the ASX’s top-performing names over the last 12 months.

It’s soared more than 218% in that time after rallying 326% in the past month alone.

The post Why is the Carnaby Resources (ASX:CNB) share price melting 22% today? appeared first on The Motley Fool Australia.

More reading

• Carnaby Resources (ASX:CNB) share price leaps another 13% in stellar start to the year
• Why is the Carnaby Resources (ASX:CNB) share price up 66% today?
• Here’s why the Carnaby Resources (ASX:CNB) share price has exploded 114% in a week
• Carnaby Resources (ASX:CNB) share price explodes 46% on ‘spectacular’ copper find

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.

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Fortescue Metals Group Ltd (ASX: FMG) is back in the headlines with news it is considering a pivot-shift in strategy regarding its magnetite operations at its Iron Bridge project.

At the time of writing, shares in the iron ore juggernaut are changing hands at $21.07 apiece, up 3.44%, after closing the session at $20.37 last Friday.

The gain is supported by broad sector strengths on Monday, with the S&P/ASX 300 Metals & Mining Index (ASX: XMM) jumping 1.47% from the open at the time of writing.

Aside from this, iron ore price action remains under considerable pressure since its selloff in mid-July. Spot and futures prices have melted more than 45% since then.

What’s up with the Fortescue share price today?

Shares in the iron ore giant opened the session down at $19.83 apiece after pre-market activity on Monday, despite no price sensitive information being released.

However, the Fortescue share price spiked on the opening bell and is now trading well in the green, amid news of a shifting strategy at its Iron Bridge magnetite mine in WA.

According to reporting from The Australian, the company is understood to have already commenced works at the site using its own fleet. However, it is now facing a blowout of up to $1.2 billion in costs and capital expenditures at Iron Bridge.

The revision on expenses comes after labour costs and foreign exchange rates had already pushed maiden production at the site back by 6 months, according to the company.

Now Fortescue says the project is on schedule to deliver first production in December 2022 with revised capital investment forecasts of $US3.3-$US3.5 billion.

As such, it is reported the company is seeking a third-party contractor to overtake long-term mining operations at the site, as Fortescue itself seeks to minimise spending on diesel trucks in its push towards renewables.

Doing so would free up capital from its expense base and allow for a reallocation towards its renewables division.

Fortescue has made the commitment to divest completely from diesel trucks by 2030, amid Fortescue Future Industries’ quest to unlock the latest sustainable energy source.

Fortescue founder Andrew ‘Twiggy’ Forrest has also been lobbying hard for the government to phase out the US$7.8 billion diesel fuel rebate by 2025, The Australian reports.

The news follows a media update out of Fortescue’s camp last week, saying it had purchased two new “battery electric locomotives” to transport its iron ore to port.

The new locomotives are set to “cut emissions while also reducing fuel costs and [its] overall operational expense through lower maintenance spend”.

As it stands, Fortescue has been more active than usual lately on managing its portfolio and aiming to reduce exposure to ‘non-green’ fuel and energy sources such as diesel.

Aside from the above, Fortescue now has to fill the positions of a number of senior executives who have left the company in recent months, including its director of energy and chief executive.

Separately, iron ore markets have been lumpy since September 2021 and have traded largely sideways since that time.

Whilst traders have shown support for iron ore lately, it has faced resistance on several occasions at the US$121-$125/tonne mark and can’t seem to breakout past that point.

Fortescue Metals share price snapshot

It’s been a difficult year for Fortescue shareholders, having lost around 17% in the last 12 months of trading. However, the company’s shares have started the year well and are up 9% to date.

In the last month, Fortescue has regained support and has climbed almost 15% into the green, amid a slew of updates and the price of iron ore bouncing off its 52-week lows in December.

The post What’s impacting the Fortescue Metals (ASX:FMG) share price on Monday? appeared first on The Motley Fool Australia.

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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.

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The Pro Medicus Limited (ASX: PME) share price is out of form again on Monday.

In early trade, the health imaging technology company’s shares have fallen 5% to $51.51.

This means the Pro Medicus share price is now down 17.5% since the start of the year.

Why is the Pro Medicus share price falling?

Investors were selling down the Pro Medicus share price last week amid weakness in the tech sector and a bearish broker note out of Morgans.

In respect to the latter, the broker downgraded the company’s shares to a reduce rating with a $54.59 price target.

Morgan made the move on valuation grounds following recent share price strength, which it felt had run ahead of fair value in the short term.

It commented: “We continue to view PME as a high quality name with a competitive product and long-term contracted revenues, but remain cautious on short-term valuation grounds, trading at 150x FY22F PE.”

Back to hold

That downgrade didn’t last long. In light of the sharp pullback in the Pro Medicus share price last week, this morning Morgans upgraded its shares to a hold rating with the same price target.

While it acknowledges that its shares still trade on lofty multiples despite last week’s selloff, the broker sees enough value to warrant a more positive rating.

Though, it isn’t necessarily recommending investors start buying shares just yet. Morgans thinks the $50 mark is a good entry point.

Morgans commented: “Given the valuation, happy to remain active and trim overweight positions but long-term thematic and earnings visibility remains strong to retain a core holding for the long-term. Looking for weakness for an entry price around A$50 for new positions.”

The way the tech sector is performing right now, investors may not have long to wait for a buying opportunity at the $50 level.

The post What’s going on with the Pro Medicus (ASX:PME) share price? appeared first on The Motley Fool Australia.

More reading

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• Why Afterpay, Altium, Aristocrat Leisure, and Pro Medicus shares are sinking
• Why did Pro Medicus (ASX:PME) and 2 other ASX 200 healthcare shares fall today?
• Why Afterpay, Kogan, Premier Investments, and Pro Medicus shares are dropping
• ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise

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 Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. 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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