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The Santos Ltd (ASX: STO) share price is outperforming following reports that it may be looking to spin-off $5 billion worth of assets next year.

The ink has barely dried on the ASX energy company’s $21 billion merger with Oil Search. But investment bankers hungry for their next big feast appear to be floating this divestment idea.

The talk is that Santos (and its investment bankers) could get a pretty penny for offloading infrastructure assets attached to its oil and gas projects, reported The Australian.

Santos share price fires up on spin-off rumours

It’s just speculation as the article didn’t name sources. Nonetheless, the market may like what it heard as the Santos share price jumped 1.39% in afternoon trade to $6.20.

That’s well ahead of its peers. The Woodside Petroleum Limited (ASX: WPL) share price has only managed a 0.33% advance, while the Beach Energy Ltd (ASX: BPT) share price is up 0.99% at the time of writing.

In contrast, the S&P/ASX 200 Index (Index: XJO) is barely in the black after Wall Street tumbled in overnight trade.

Hot M&A assets

There are many ways to crystallise value from divesting assets. This is particularly so for infrastructure assets as there are plenty of buyers looking for stable long-term returns in this market. Just ask Sydney Airport (ASX: SYD).

But Santos appears to be focusing on an initial public offering (IPO) for these assets, according to The Australian.

The paper quoted unnamed sources as saying that the company is “giving serious consideration to” the idea of a new float.

Other divestment options for the Santos share price

This could also be a way to force would-be acquirers to show their hands and to offer a higher price for the prize.

But there is more than one way of skinning a cat. Another alternative is for Santos to sell a stake in the infrastructure to a strategic buyer.

The Australian noted that Woodside did this with global infrastructure fund GIP, which purchased a 49% interest in its Pluto Train 2 project to strengthen its balance sheet and de-risk the project.

Can the Santos share price outperform in 2022?

The IPO route may be the lowest hanging fruit for Santos due to the complex nature of the assets. But the good news is that spin-offs or divestments often generate value for shareholders.

Selling the assets for cash will allow Santos to contemplate a capital return of sorts – and who doesn’t like the sound of that?

If Santos chooses the IPO route, existing shareholders will get to own shares in the new listed entity too. One more recent example is Iluka Resources Limited (ASX: ILU) and Deterra Royalties Ltd (ASX: DRR).

History has shown that the combined value of the parent and child entity often beats the broader market. That sounds even better, in my view.

The post Santos (ASX:STO) share price jumps on divestment speculation appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Monday
• Leading brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: Magellan shares crash 28%, CIMIC tumbles
• Is the Santos (ASX:STO) share price well oiled and gassed up for 2022?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Brendon Lau owns Deterra Royalties Limited, Iluka Resources Ltd., and Santos Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 much anticipated CSL Limited (ASX: CSL) share purchase plan (SPP) is officially opening today as the company attempts to raise another $750 million for its acquisition of Vifor Pharma.

The Australian biotech company is spending $16.4 billion to take over the Swiss renal disease and iron deficiency-focused giant.

At the time of writing, the CSL share price is $281.43, 2.8% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also up today, having gained 0.35%.

Without further ado, here are all the details on CSL’s massive SPP.

CSL share price gains amid SPP opening

CSL is raising cash through an SPP that could see new securities in the company on offer for $273 – or less – each.

The company stamped the $273 price tag on its shares during last week’s $6.3 billion placement. It also represents about a 3% discount on the current CSL share price.

Though, if the company’s share price falls between now and 7 February – when the SPP is expected to close – the new shares will be priced at a 2% discount to CSL’s 5-day volume-weighted average price.

Those who held CSL shares as of 13 December may be eligible to apply for between $2,500 and $30,000 worth of new shares. Doing so will allow them to dodge broker and transaction costs.

However, CSL might choose to scale back its offer. If it does, it will make sure the scaled-back amount will see those who applied for new shares at least retaining their percentage shareholding in the company.

It also retains the right to extend or close the SPP early without notice.

The new shares are expected to be issued on 14 February and to begin trading on the ASX the following day.

The plan is only open to Australian and New Zealand shareholders who are outside of the United States.

The post Interested in the $750m CSL (ASX:CSL) share purchase plan? Here are the details appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. 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 Pilbara Minerals Ltd (ASX: PLS) share price is having a day to forget.

At the time of writing, the lithium miner’s shares are down a sizeable 10% to $2.49.

Why is the Pilbara Minerals share price sinking today?

Investors have been selling down the Pilbara Minerals share price today after the lithium miner downgraded its December quarter and FY 2022 annual concentrate production and shipping guidance.

According to the release, delays have been experienced with both the Ngungaju Plant re-start and Pilgan Plant Improvements Project. This is particularly through plant commissioning, ramp-up initiatives and extended plant shut-downs.

Furthermore, the company’s ability to operate and improve the Pilgan Plant and restart the Ngungaju operation have been impacted by the extended border closures. This is impacting the ability for Western Australian mining companies to access key personnel in construction, production and maintenance roles.

What is the impact?

In light of the above, Pilbara Minerals now expects to produce approximately 84kt to 95kt dmt of spodumene concentrate during the December 2021 quarter. This is down from its previous production guidance of 90kt 115kt dmt.

As for shipped tonnes, management feels this is likely to be lower than production pending the timing of vessel loading and departures at the end of the current quarter.

As for FY 2022, Pilbara Minerals annual concentrate production guidance has been downgraded to 400,000 to 450,000 dmt from 460,000 to 510,000 dmt. Whereas FY 2022 shipments are expected to be 380,000 to 440,000 dmt, down from 440,000 to 490,000 dmt.

Pilbara Minerals’ Managing Director, Ken Brinsden, said: “We have made excellent progress in the construction and initial commissioning of the expanded facilities at Pilgangoora, with construction of the Pilgan Improvements Project being delivered on time and on budget. That said, as we have started ramping up capacity across the entire Pilgangoora site, Pilbara Minerals has not been immune to the skilled labour shortages currently impacting the WA resource sector.”

“As a result of these impacts, which have delayed elements of our commissioning and ramp-up plans, we have updated production guidance for the December Quarter as well as for FY22. Notwithstanding this, Pilbara Minerals remains incredibly well-placed to make a significant contribution towards satisfying the world’s burgeoning appetite for lithium raw materials.”

“Recent price developments are underlining the emergence of significant raw material supply shortages and Pilbara Minerals is doing everything in its power to respond quickly to customer demand with additional production capacity, both in the short and medium term,” he added.

The Pilbara Minerals share price is still up over 180% since the start of the year.

The post Why is the Pilbara Minerals (ASX:PLS) share price crashing 10% lower today? appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Magellan rebounds, Pilbara Minerals sinks
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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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has actually had a pretty decent start to this twelfth month of the year thus far. Over December, the ASX 200 has gained around 0.73%. Not too shabby, one could say. But in saying that, it certainly leaves a lot to be desired from the BetaShares Asia Technology Tigers ETF (ASX: ASIA).

ASIA units have not had anywhere near the December that the ASX 200 has enjoyed. Over the month thus far, the ASIA ETF has gone backwards by a nasty 6.44%, falling from $9.79 per unit to the current price today of $9.16.

But, unfortunately for investors, that’s not where ASIA’s pain ends. In addition to losing close to 7% over December so far, ASIA is also down around 11.3% over the past month. 2021 year to date has seen this ETF lose 21.3%, and more than 35% from the all-time high of $14.36 that we saw back in February.

But let’s circle back to December. Why have ASIA units not gotten into some Christmas cheer as the ASX 200 has?

Well, to answer that, let’s check out what kind of investments ASIA actually invests in. Although it is listed on the ASX, ASIA has virtually zero exposure to the Australian share market or the ASX 200. Instead, according to its provider, ASIA invests in a portfolio “comprising [of] the 50 largest technology and online retail stocks in Asia (ex-Japan)”.

December proves to be a trying time for ASIA

As of 20 December, the top 5 of these (and their weighting in the ETF) were as follows:

1. Samsung Electronics Co Ltd, with a portfolio weighting of 11.7%
2. Taiwan Semiconductor Manufacturing Company, with a weighting of 11.4%
3. Tencent Holdings Ltd, with a weighting of 9.9%
4. Alibaba Group Holding Ltd, with a weighting of 8.5%
5. Meituan, with a weighting of 6%

So as you can tell, ASIA is a relatively concentrated ETF, with these top 5 holdings making up almost half (47.5%) of the entire ETF’s weighting. As such, we can say that these 5 companies pretty much determine what happens to the value of this ETF.

Well, Samsung shares have had a pretty decent December thus far, rising a touch over 8% since the start of the month so far.

But Taiwan Semiconductor hasn’t had such a good time. It’s down 1.9% over the same period.

Likewise, Tencent has lost 6.4% since the start of the month, while Alibaba is down 9.83%. Rounding out the top 5, Meituan has given up 7.9% over the month so far.

So on the whole, ASIA’s top holdings haven’t had a great time of it over December thus far, even accounting for the outperformance of its top holding in Samsung. And this is the likely reason why ASIA units have been struggling over December. A sluggish Aussie dollar probably hasn’t helped either.

But it’s not all bad news. ASIA units are still up close to 50% since this ETF’s ASX debut back in 2018.

The BetaShares Asia Technology Tigers ETF charges a management fee of 0.67% per annum.

The post Why is the Betashares Asia Technology Tigers ETF (ASX:ASIA) struggling in December? appeared first on The Motley Fool Australia.

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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 recommended BetaShares Asia Technology Tigers ETF. 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 Ampol Limited (ASX: ALD) share price is inching higher today, up 0.86% to $28.08 at the time of writing.

It’s been a difficult period for the petroleum giant these past 3 months, with shares trading as high as $31.95 in November before retracing backward to their current levels.

Add in that shares are trending in a sideways channel over the last 12 months, and the recipe is becoming more and more flavourless for Ampol shareholders.

So with these points in mind, we ask, is Ampol a buy? Let’s take a closer look at what the experts are saying.

What’s Jefferies saying about Ampol?

The team at investment bank Jefferies notes that Viva Energy Group Ltd (ASX: VEA)’s recent upgrade to earnings guidance bodes well for Ampol.

Jefferies points out that Ampol is Viva’s major competitor in the Australian petroleum refining and marketing segment. As a result, any upgrade to Viva’s earnings outlook transposes as a positive catalyst to Ampol.

In a recent note, Viva advised it expects earnings before interest, taxes, depreciation, and amortisation (EBITDA) to come in at $470 million to $490 million in 2021, which is a substantial jump of almost 20% from median Jefferies forecasts.

The broker notes that Viva’s upgrade was likely due to margin performance at the refining and retail segments. While it acknowledges that “Viva is likely outperforming in both commercial and retail”, it concurrently believes “these dynamics augur in well for Ampol”.

Jefferies says it “remains positive on both stocks given leverage to COVID recovery and attractive valuations”. For reference, Ampol is currently trading at 14.6x price to earnings (P/E) and just under 2.3x price to book (P/B).

The team at Barrenjoey Capital Markets recently upgraded its rating on Ampol as well, recommending it as overweight with a $36.68 valuation.

This sentiment appears to be shared with the majority of analysts covering Ampol, according to Bloomberg Intelligence.

From the list of analysts covering Ampol almost 60% reckon it is a buy right now, with a consensus price target of $33.74. This consensus valuation offers a 12-month return potential of around 20% from the current market price.

What are other analysts saying about the Ampol share price?

With respect to some specific valuations, Credit Suisse has Ampol as neutral at a price target of $29.53, whereas Morgan Stanley likes the shares and rates Ampol as a buy at a $35 per share valuation.

RBC Capital Markets holds the same view and rates Ampol a buy with a $33 per share price target. In contrast, Barclay Pearce isn’t as rosy and reckons the company is a hold at $24.91 per share.

The number of analysts covering Ampol and rating it a buy has crept down gradually over the last 12 months.

This downward move has occurred alongside the Ampol share price, which has also slipped around 1.5% into the red in that same time.

The post Why is Jefferies bullish on the Ampol (ASX:ALD) share price? 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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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is defying the weakness on Wall Street and pushing higher. The benchmark index is currently up 0.25% to 7,309.7 points.

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

Magellan shares bounce around

The Magellan Financial Group Ltd (ASX: MFG) share price has been bouncing around on Tuesday. After dropping to a new multi-year low, the fund manager’s shares are now trading meaningfully higher for the day. Though, this could have been driven partly by short sellers buying back shares today to close out their positions following yesterday’s 30%+ decline.

Pilbara Minerals shares tumble

The Pilbara Minerals Ltd (ASX: PLS) share price is under pressure on Tuesday after the release of a disappointing update. According to the release, the lithium miner has downgraded its December quarter and FY 2022 annual concentrate production and shipping guidance due to delays with commissioning, ramp-up initiatives and extended plant shutdowns at its Ngungaju and Pilgan Plants.

Afterpay makes new 52-week low

The Afterpay Ltd (ASX: APT) share price has continued its poor run and tumbled to a new 52-week low of $80.21 this morning. This followed another heavy decline by the Square share price overnight which devalued the takeover offer that Afterpay shareholders voted overwhelmingly in favour of last week.

Best and worst ASX 200 performers

The best performer on the ASX 200 today with a gain of almost 6% has been the Magellan share price. However, its shares are still down ~60% in 2021 despite this gain. The worst performer has been the Pilbara Minerals share price with a 7% decline after downgrading its production and shipments guidance.

The post ASX 200 (ASX:XJO) midday update: Magellan rebounds, Pilbara Minerals sinks 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. owns and has recommended AFTERPAY T FPO. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. 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 Rumble Resources Ltd (ASX: RTR) share price is on the rise today amid a major discovery at one of the company’s drill sites.

Rumble shares are swapping hands at 38.5 cents in morning trade, up 5.48% on yesterday’s close.

Let’s take a look at what Rumble Resources revealed today.

What did the miner discover?

Rumble Resources informed investors it has discovered significant zinc, lead, copper and silver mineralisation at its Chinook Prospect in Western Australia.

The company announced the top of a large-scale, sub-vertical feeder fault zone, intersected in drill-hole EHRC136, has returned a broad zone of zinc and lead mineralisation with multiple intersections.

As well as zinc and lead deposits, the company announced “the discovery of significant copper and silver in a northwest trending 1.7km long feeder fault zone at Chinook”.

Today’s news is a follow-up to last week’s update on strong zinc, silver and lead results at the Chinook site.

The company also reported significant zinc, lead and silver mineralisation at its Navajoh Prospect.

Located 4km southeast of the company’s recent Tonka Discovery, the company says first pass drill scoping on a single traverse intersected significant “unconformity related” zinc, lead and silver sulphide mineralisation, similar to the Chinook and Tonka Prospects.

It’s more good news for Rumble which has been drilling at its 75%-owned Earaheedy Project, located 110km northeast of Wiluna in Western Australia. Zenith Minerals Ltd (ASX: ZNC) holds the other 25% stake in the site.

What did management say?

Commenting on the discovery, Rumble Resources technical director Brett Keillor said:

The discovery of significant copper with silver mineralisation at the top of a major feeder fault system along with high grade zinc and lead at Chinook highlights the potential for a very largescale zoned base metal system.

The copper mineralisation supports the evolving geology and ore deposition model with respect to feeder fault zones reflecting higher depositional temperatures.

Rumble Resources is completing its drilling for the 2021 season and expecting final drilling results in February or March next year. In 2022, the company will continue drilling and testing at the site.

Rumble Resources share price snapshot

The Rumble Resources share price has surged a significant 250% in the past 12 months and is up 234% year to date.

Despite this, the company’s shares have dropped by 8% in the past month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned more than 9% in the past year.

The miner has a market capitalisation of nearly $239 million based on its current share price.

The post Here’s why the Rumble Resources (ASX:RTR) share price is climbing 5% appeared first on The Motley Fool Australia.

More reading

• Down 35% in 2 months: What’s going on with the Rumble Resources (ASX:RTR) share price?

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 Total Brain Ltd (ASX: TTB) share price is rebounding after hitting an all-time low of 9.4 cents on Friday. This comes after the digital mental health software-as-a-service (SaaS) company announced a data licensing agreement that has excited investors.

At the time of writing, Total Brain shares are surging a whopping 57.89% to 15 cents apiece.

Total Brain secures data licensing agreement

In a statement to the ASX, Total Brain advised it has entered into a perpetual, non-exclusive licence with Janssen Research & Development, LLC.

Founded in 2001, Janssen supports the pharmaceutical business of global healthcare behemoth, Johnson & Johnson.

Janssen specialises in researching, developing, and producing medicines for a range of diseases. This relates to areas such as cardiovascular and metabolism, immunology, infectious diseases and vaccines, neuroscience, oncology, and pulmonary hypertension.

Under the agreement, Janssen will have access to Total Brain’s iSPOT-D (International Study to Predict Optimized Treatment for Depression) research data. The licensing deal is effective immediately.

As such, Total Brain will receive a one-off licence fee of US$2.2 million within the next 90 days.

This will indeed boost the company’s cash runway significantly for research activities beyond the June 2022 quarter. Previously, Total Brain had $2.6 million at the end of September 2021.

More on Total Brain

Based in San Francisco and Sydney, Total Brain has developed the world’s first mental health self-monitoring and self-care platform.

Its SaaS platform has helped more than 1 million users scientifically measure and optimise their brain capacities while managing the risk of common mental conditions.

These benefits for employers, large organisations, and insurers have translated to productivity improvements and healthcare cost reduction.

Total Brain share price snapshot

Over the past 12 months, the Total Brain share price has lost around 52%. It is also down roughly 53% this year to date. It is a stark contrast from when the company’s shares reached a 52-week high of 50.5 cents in January 2021.

On valuation grounds, Total Brain presides a market capitalisation of about $17.34 million, with 133.39 million shares outstanding.

The post Here’s why the Total Brain (ASX:TTB) share price is rocketing 58% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned.

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Despite a recent blip following its first quarter update, the Commonwealth Bank of Australia (ASX: CBA) share price has been a very strong performer in 2021.

Since the start of the year, the banking giant’s shares have charged close to 19% higher to $99.36.

This is almost double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where is the CBA share price heading in 2022?

While there are a number of brokers out there that are tipping the CBA share price to fall in 2022, one leading broker sees scope for it to push higher.

In fact, the team at Bell Potter believe there is potential for Australia’s largest bank’s shares to hit a new record high.

According to a recent note, its analysts have a buy rating and $111.00 price target on the company’s shares. Based on the current CBA share price, this implies potential upside of 11.7% for investors over the next 12 months.

In addition, Bell Potter is tipping the bank to increase its fully franked full year dividend by 12.5% to $3.94 per share in FY 2022. This represents a yield of 4% at current levels, stretching the total return on offer to almost 16%.

What did the broker say?

While the broker acknowledges that the bank’s first quarter update revealed that trading conditions are tough due to mortgage competition, it continues to see enough value in the CBA share price at the current level to maintain its positive view.

Bell Potter commented: “Given its lower quarterly performance, CBA’s cash NPAT is reduced by 3% across the forecast horizon. This is mainly due to lower NII (-1%) and other income (-2%) but flat in total excluding the AHL divestment (above system growth that offset margin pressures and lower other income), slightly lower operating expenses (+1% based on lower remediation costs) and just a minor change in loan impairment expense in FY22 of -33% (i.e. a lower expense). The price target is however lowered by 6% to $111.00 (previously $118.00) after also considering added dividend and ROE risks. Based on a 12-month TSR of greater than 15%, CBA is still regarded as a Buy.”

The post Will the CBA (ASX:CBA) share price smash its record high in 2022? appeared first on The Motley Fool Australia.

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• Fed up with term deposits? How to get 10% income from ASX shares
• 2 buy-rated ASX dividend shares for income investors
• Is the dividend big enough to make the CBA (ASX:CBA) share price a buy?
• Top brokers name 3 ASX shares to sell next week
• What’s happening with the CBA (ASX:CBA) share price this week?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

What happened

A range of more speculative meme tokens is seeing increased selling pressure in the US today. Popular dog-inspired cryptocurrencies Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE) have declined 6.8% and 4.4% respectively over the past 24 hours as of 12:30 p.m. ET. Other high-momentum tokens such as metaverse crypto The Sandbox (CRYPTO: SAND) haven’t been spared, declining 3.1% over the same time frame.

A string of catalysts appears to be behind this meme token decline today. For one, Senator Joe Manchin’s rebuttal of President Joe Biden’s Build Back Better plan has sent risk assets lower today.

Stocks, crypto, and commodities all got hammered on the news. Continued concern around the omicron variant has investors on edge. And there remains a growing number of investors who are unsure as to whether inflation, and the monetary tightening that appears underway from the Federal Reserve, will prove to be bullish or bearish for risk assets.

So what

There’s really quite a bit of macroeconomic data investors are forced to grapple with right now. These aforementioned headwinds certainly present a rather unflattering near-term outlook for high-risk, high-upside asset classes. For digital currencies — and meme tokens in particular — one may argue that capital outflows from riskier assets could provide some serious volatility for markets. 

Dog-themed tokens such as Shiba Inu and Dogecoin have surged in interest as speculative momentum bets during this cheap money-fueled rally in some of the riskiest assets. As this trade winds down, concerns around how much capital will flow out of such assets, and to which sectors, remain.

For metaverse-themed cryptocurrencies such as The Sandbox, there’s perhaps a stronger bull case that can be made. That said, the valuations of these tokens continue to be debated among investors, many of whom are skeptical about how quickly they’ve appreciated in such short order.

Now what

It’s difficult to predict where high-risk, high-return assets, particularly meme tokens, will go from here. On the one hand, there’s still a tremendous amount of excess capital in the markets that will look to find a home. On the other, it appears pretty clear that investors are intent on de-risking their portfolios right now. For meme tokens, this environment could be a rocky one over the near term.

For those looking to be aggressive in this downturn, some prudence in ensuring proper position sizing and portfolio allocation to risk assets is important. For most others, watching from the sidelines may be the best course of action. 

That said, there’s likely a lot more excitement to come, so get the popcorn ready.

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

The post Meme coin selling: Why Shiba Inu, Dogecoin, and The Sandbox are down appeared first on The Motley Fool Australia.

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Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

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