Tag: Motley Fool

The Rio Tinto Limited (ASX: RIO) share price was on course to record a strong gain in 2021. That was until iron ore prices collapsed earlier this year.

Since then, the mining giant’s shares have fallen 28% from their highs, wiping out all their year to date gains in the process.

In light of this, Rio Tinto’s shares are now down 15% in 2021.

Is this a buying opportunity?

While the pullback in the Rio Tinto share price has been disappointing for shareholders, a couple of leading brokers see this as a buying opportunity for non-shareholders.

According to a note out of Morgan Stanley this morning, its analysts have retained their overweight rating and $110.50 price target on the company’s shares.

Based on the current Rio Tinto share price, this implies potential upside of approximately 12% for investors over the next 12 months.

Morgan Stanley likes Rio Tinto due to its exposure to aluminium and its belief that China’s housing outlook is improving.

Who else is bullish on the Rio Tinto share price?

Analysts at Goldman Sachs are also positive on the Rio Tinto share price. Last week they retained their buy rating and $121.00 price target on its shares.

The broker also likes Rio Tinto due to its exposure to aluminium and particularly its ELYSIS inert anode technology. This technology helps reduce the carbon footprint of aluminium production materially. Goldman sees opportunities for the technology to be licensed and suspects it could generate billions in revenue.

Goldman said: “In addition to copper production growth, Rio has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions of $. Aluminium will contribute 20% of RIO’s group EBITDA in 2022 on our estimates.”

The post Analysts tip Rio Tinto (ASX:RIO) share price to shoot higher appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
• Evergrande officially defaults, downgraded by Fitch. What next?
• Analysts name 2 ASX dividend shares to buy now

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

from The Motley Fool Australia https://ift.tt/3GEne7z

The Macquarie Group Ltd (ASX: MQG) share price is up 0.54% in afternoon trading, currently at $203.06 per share.

The S&P/ASX 200 Index (ASX: XJO) is in the green as well, also up 0.63% at this same time.

But, so far in December, the Macquarie share price has outperformed the ASX 200, with Macquarie gaining 3.58% compared to a benchmark gain of 2.27%. A trend we’ve seen playing out all year.

New capital and new management

The Macquarie share price ended last month on a high note. Shares gained 1.4% on 30 November when the banker, financial advisory and fund manager announced it had closed its share purchase plan (SPP). The SPP successfully raised $1.3 billion in new capital.

The 6.8 million newly issued shares from the SPP began trading on the ASX on Monday 6 December.

The company also received a boost early this month with a new management announcement.

On 2 December the Macquarie share price finished the day up 1.5% after reporting that former Reserve Bank of Australia (RBA) governor Glenn Stevens will replace Peter Warne as the new chairman of the Macquarie board. The management handover will take place in May 2022.

What this expert said about the Macquarie share price

As part of The Motley Fool’s ongoing Ask a Fund Manager series, we interviewed Kardinia Capital’s portfolio manager Kristiaan Rehder, in mid-November. (You can find the full 2-part interview here and here.)

One of the questions we posed was, “If the market closed tomorrow for 5 years, which ASX shares would you want to hold?”

Rehder told us he thought the Macquarie share price had further to run:

It’s very hard to go past Macquarie. Macquarie’s performed very strongly. It’s a core holding of ours; we’ve held it for many years.

Its annuity business now makes up around 60% of group earnings. It’s really shifting away from being a business that was largely a market-facing business to one that’s much more stable. Its assets under management continue to grow.

It has good exposure to infrastructure and green energy. Around a $1.8 billion investment in these sectors is currently held on its balance sheet. It provides an ongoing pipeline of profits on asset sales over time. Returns across the business remain high. So it wasn’t a huge surprise to us that they launched the recent capital raising.

The sort of returns Macquarie is currently making, it certainly has the potential to create significant shareholder value through time.

Macquarie share price snapshot

The Macquarie share price has gained 45% in 2021, well outpacing the 11% year-to-date gains posted by the ASX 200.

Macquarie also pays a 3% trailing dividend yield, 40% franked.

The post Why is the Macquarie (ASX:MQG) share price having such a good month so far? appeared first on The Motley Fool Australia.

More reading

• Is the CSL (ASX:CSL) share price great value? Here’s what analysts think
• 2 ASX shares that tick all the right boxes for the long term: expert
• How did the Macquarie (ASX:MQG) share price stack up in November?
• Did the Rio Tinto (ASX:RIO) share price start a recovery in November 2021?
• Macquarie (ASX:MQG) share price gains as former RBA governor named chair

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 Macquarie Group Limited. 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/3ESl8Ar

The Doctor Care Anywhere Group PLC (ASX: DOC) share price has gained the attention of investors on Monday.

Earlier in the day, shares in the UK-based telehealth provider surged more than 9% higher to 47 cents apiece. However, upwards momentum quickly reverted back to downwards pressure. As a result, the company’s share price is now down 1.1% to 42.5 cents.

Interestingly, the small-cap company has experienced an above-average amount of volume traded. At the time of writing, more than 357,000 Doctor Care Anywhere shares have exchanged hands today. This is the highest level of volume since the company endured a 9.7% fall one week ago.

So, what could be attracting heightened focus on the Doctor Care Anywhere share price today?

Telehealth is here to stay

Investors seem to be paying extra attention to telehealth companies such as Doctor Care Anywhere today. This follows a media release from the Australian Government Department of Health detailing a $308.6 million investment in the country’s primary care health system.

According to the release, telehealth will become a permanent feature of primary health care. As such, $106 million of the $308.6 million in government spending will go towards telehealth for Australian patients. This investment will be spread across four years.

The government aims to ensure greater flexibility for patients and doctors by allowing medical personnel to continue to leverage online and phone consultations.

Furthermore, the release stated that since early March 2020, more than 86.3 million COVID-19 Medicare Benefits Schedule (MBS) services have been delivered to 16.1 million patients.

The government’s backing of telehealth services along with this announcement has likely has put the Doctor Care Anywhere share price in focus today. Though, investors don’t seem to be overly optimistic with the news as its shares come under pressure in afternoon trade.

Doctor Care Anywhere share price recap

While telehealth might have gained popularity in the last year due to ongoing conditions, the Doctor Care Anywhere share price hasn’t benefitted from it.

In the last year, shares in the telehealth platform provider have sunk 65% in value. Meanwhile, the broader health care sector has gained 5.6% in value. The poor performance is hard to decipher considering the company reported a record quarter in October for the number of patients who had their first consultation using the platform.

Based on the current Doctor Care Anywhere share price, the company holds a market capitalisation of ~$78 million.

The post Why is the Doctor Care Anywhere (ASX:DOC) share price getting attention today? appeared first on The Motley Fool Australia.

More reading

• 2 fast growth ASX shares that could be buys in December 2021
• 2 ASX shares that may be too good to ignore

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. 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/3IVtSZh

The South32 Ltd (ASX: S32) share price is pushing higher again on Monday.

In afternoon trade, the mining giant’s shares are up almost 1% to $3.88.

This means the South32 share price is up 54% in 2021 and trading close to its 52-week high.

Where next for the South32 share price?

The good news for investors is that the South32 share price can keep rising according to a number of brokers.

Two that are particularly positive are Goldman Sachs and Morgans.

In respect to the latter, last week Morgans upgraded the miner’s shares to an add rating with a $4.10 price target. Whereas the former has a conviction buy rating and $4.40 price target on South32’s shares.

Both brokers are also forecasting big dividends in the near term. For example, Goldman Sachs expects double digit, fully franked dividend yields for the next five financial years.

What did the brokers say?

Morgans likes South32 due to its upside potential, generous yield, and commodity diversification.

The broker explained: “We upgrade our recommendation on S32 to Add, from Hold, seeing an attractive investment proposition of upside to our target, an attractive 7.6% dividend yield FY22F [at the time], and capacity to keep pursuing new growth. S32 also boasts superior diversification compared to its fellow ASX mining peers (with BHP divestments in oil & gas and coal, RIO’s oversized iron ore exposure, and FMG’s single exposure to iron ore and ground-floor entry into renewables).”

Whereas Goldman Sachs is positive on the South32 share price partly due to its valuation and free cash flow yield.

Goldman said: “We forecast a FCF yield of c. 16-18% in FY22 & FY23 (over 20% at spot) [at the time], driven mostly by exposure to base metals (aluminium & alumina c. 50% of FY22 EBITDA, zinc/nickel c. 20%).”

All in all, the South32 share price may be up materially this year, but these brokers don’t believe it is too late to invest.

The post Where next for the South32 (ASX:S32) share price after rising 54% in 2021? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 dividend shares to buy
• These 3 ASX 200 shares are topping the volume charts on Friday
• Brokers name 3 ASX shares to buy today
• Why Morgans upgraded South32 (ASX:S32) shares to a buy rating
• South32 (ASX:S32) share price slumps amid ‘concerning’ heavy metals levels in residents

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/3IIiaAU

ETFs Hydrogen ETF (ASX: HGEN) is an exchange-traded fund (ETF) that gives investors exposure to many of the world’s leading companies involved with hydrogen. The focus is on businesses that offer pure exposure to hydrogen, rather than a diversified business.

Investors can get this exposure to the hydrogen industry from ETF Securities for an annual management fee cost of 0.69%.

Why is hydrogen good for the environment?

There are high hopes that hydrogen can prove to be a key enabler of decarbonisation.

It reportedly has three times more energy on a ‘weight for weight’ basis than petrol, while producing no carbon dioxide emissions.

The idea is that hydrogen can be used to replace fossil fuel in areas that have been difficult to decarbonise in the past.

There are plenty of businesses in the world that are looking to provide technology, products, services or expertise in relation to hydrogen and helping the world transition to greener fuels.

What shares are in the ETFs Hydrogen ETF?

The Solactive Global Hydrogen ESG Index is made up of 30 hydrogen businesses around the world. That’s the index that ETFs Hydrogen ETF seeks to track before expenses and so on.

Looking at the country allocation, these are the biggest five weightings at the end of November 2021: the US (32.6%), the UK (23.9%), South Korea (15.7%), Canada (9.3%) and Norway (6.8%).

At the latest disclosure, these are the biggest 10 positions: Plug Power, Bloom Energy, Ballard Power, ITM Power, Doosan Fuel Cell, Ceres Power, Fuelcell Energy, Linde, Air Products & Chemicals and Doosan Corp.

What do they do?

Let’s look at what the largest five holdings do.

Plug Power – It is involved in building the ‘green hydrogen’ economy. It says it’s the leading provider of clean hydrogen and zero-emission fuel cell solutions that are both cost-effective and reliable.

Bloom Energy – This business provides an onsite energy platform. It’s based on proprietary solid oxide fuel cell technology – its servers convert fuel into electricity through an electrochemical process without combustion at high efficiency. Bloom Energy says its platform provides multiple pathways for decarbonisation – hydrogen fuel cells, electrolysers, biogas, marine and carbon capture.

Ballard Power – The company says that it’s the leading global provider of innovative clean energy fuel cell solutions. Its products are aimed at different uses including buses, trucks, trains, propulsion for the marine industry and so on.

ITM Power – Next in the ETFs Hydrogen ETF is ITM Power, which manufactures integrated hydrogen energy solutions to enhance the utilisation of renewable energy that would otherwise be wasted.

Doosan Fuel Cell – It provides green, reliable and robust energy solutions. It says its technology is best suited for power plants, cold storages, large buildings or spas as it generates 440KW electricity and heat together.

The post Own ETFs Hydrogen ETF (ASX:HGEN)? Here’s what you’re invested in appeared first on The Motley Fool Australia.

More reading

• Why is the ETFS Hydrogen ETF (ASX:HGEN) share price climbing today?
• Why has the ETFs Hydrogen ETF (ASX:HGEN) leapt almost 20% in a month?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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/3GuIBIu

The S&P/ASX 200 Index (ASX: XJO) has shaken off last week’s bad mood so far this Monday, and is on track for a solid gain. At the time of writing, the ASX 200 is up 0.59% at 7,397 points thus far today.

But let’s dive deeper and check out the ASX 200 shares currently topping the ASX’s share volume charts, according to investing.com.

3 most active ASX 200 shares by volume on Monday

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is the first high volume ASX share for today. Telstra has seen a healthy 10.9 million of its shares find new owners so far this Monday. Despite this, there is not much in the way of news or announcements out of the telco so far, aside from the revelation that it is now one of the largest contributors of corporate tax in the country.

Saying that, the Telstra share price has had a bit of an interesting day. It’s currently flat at $4.06, but rose as high as $4.10 this morning after market open, a new 52-week high for the company. This is probably what is behind this elevated trading volume we are seeing.

Sydney Airport (ASX: SYD)

Sydney Airport is next up today. This ASX 200 infrastructure company has seen a hefty 15.68 million shares bought and sold so far this Monday. Again, there is not a lot going on with Sydney Airport today. Its shares are currently flat at $8.59 after a brief rise this morning.

However, this company has been experiencing elevated trading volumes for a while now, ever since the green light was announced for its pending acquisition by the Sydney Aviation Alliance. This might still be in play this Monday.

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium producer Pilbara is topping the ASX 200 thus far today in terms of trading volume. Pilbara has seen a sizeable 19.72 million of its shares traded on the share market at the time of writing. This is almost certainly the result of the pleasing share price jump we have seen Pilbara make today.

Pilbara shares are currently trading at $2.72 each, up a robust 4.42% today and touching an all-time high.

The post These 3 ASX 200 shares are topping the volume charts this Monday appeared first on The Motley Fool Australia.

More reading

• This ASX shares fund is closing. Manager reveals why
• Buying ASX shares? Why the ‘when’ is just as crucial as the ‘which’: expert
• What might trading volume tell us about the potential of an ASX share?
• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• Telstra (ASX:TLS) just rejoined this exclusive, top-10 club

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 owns and has recommended Telstra Corporation Limited. 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/3IK4g1m

Flight Centre Travel Group Ltd (ASX: FLT) shares are no stranger to topping lists.

The company’s stock is often the ASX’s most shorted share, but it seems not everyone is bearish on its future.

Trading platform, Superhero has looked back at its users’ activity in 2021 and found that Flight Centre was among their most traded Australian shares.   

Superhero founder and CEO, John Winters told The Motley Fool Australia that some of the platform’s Aussie customers might have turned to investing in travel stocks to ease their notorious wanderlust through the pandemic.

At the time of writing, the Flight Centre share price is $17.72, 0.34% lower than its previous close.

Flight Centre shares traded like hot cakes this year

While Superhero users were locked in Australia – and often into their state or city – for much of 2021, many kept busy by swapping Flight Centre shares.

The company was Superhero’s second most traded ASX stock between 1 January 2021 and 30 November 2021. It was only bested by buy now, pay later (BNPL) prodigy, Zip Co Ltd (ASX: Z1P).

Fellow ASX travel share, Qantas Airways Limited (ASX: QAN) was also one of the platform’s most traded shares. It came in at fourth place.  

Winters told The Motley Fool Australia that the platform has noticed its users “invest in what they’re invested in personally”:

We know that Aussies love to travel and the last two years has really put a spanner in the works.

According to Winters, users’ interest in getting on board with travel shares may have increased alongside certainty in Australia’s reopening:

Particularly towards the end of the year, there was a lot more confidence in Australia opening up to the rest of the world – and also states opening up to each other – which could be a reason for our customers backing travel stocks this year.

Since the start of 2021, the Flight Centre share price has gained 10.69%. Its stock hit a high of $25.28 in October and a low of $13.59 in February.

Meanwhile, since December 2020, the number of people using Superhero has grown from 22,000 to a whopping 150,000. That represents a 581% increase.

The post Love ’em or hate ’em, Flight Centre (ASX:FLT) shares were the second most traded on Superhero this year. Here’s why appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Is the Flight Centre (ASX:FLT) share price good value after falling 16% in a month?
• ASX 200 retail shares lift as Aussies head into Christmas with $240bn in savings
• Why is the Flight Centre (ASX: FLT) share price soaring 6% higher today?
• Here’s why ASX 200 travel shares are taking off today

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 ZIPCOLTD FPO. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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/3EPRqfD

Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Eley Griffiths portfolio manager Nick Guidera announced his fund is closing, and explains why.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Nick Guidera: We recently announced the soft close date for our ASX 200 Emerging Companies Fund. That fund is a product that predominantly invests in ASX listed securities outside the S&P/ASX 200 Index (ASX: XJO) and typically targets companies earlier in their growth phase or trajectory. We also have the ability to invest directly in the NZX market as well. The fund has a weighted average market cap of $550 million. 

As a result of that, the fund has been deployed to investors as a solution for those seeking both small-cap exposure or micro-cap exposure. The strategies delivered micro-cap style returns — 25% per after fees with small-cap or lower volatility since inception. 

The reason why we’ve announced the soft closing of the fund at $300 million in capacity is to allow plenty of runway for our investors to grow over time. And our style-agnostic approach means that we are able to construct all-weather portfolios that can kind of traverse market cycles.

This product is almost 5 years old. We’ve had a whole variety of market conditions during that time from global coordinated growth when we launched the product to a rising rate environment in the US.

We saw a December ’18 drawdown, we saw the COVID impacts through ’20, the COVID rallies, a cyclical rotation again, and now some question marks over how that will run with the outlook for rising interest rates globally again. 

It’s been a great time to be managing money in that period because our investment style’s been certainly tested. 

MF: Congratulations that you’ve reached a point where you can soft-close it now. You can go on a long holiday.

NG: I wish we could go on a long holiday. I mean, in reality, soft close means that our existing investors can come and go. But we want to make sure that that capacity is preserved because I think in this area of the market, you need to be nimble. You need to be able to focus highly on liquidity and having too large a fund just means you can’t necessarily navigate some of these earlier opportunities or take advantage of them as early as you would like.

MF: With those smaller companies, you have to be very active don’t you? It is a lot of work.

NG: It is a lot more work. You do have to be more active and it’s typically because you don’t have the analyst coverage, the history of financial results or annual reports are not as lengthy as perhaps more established companies. 

You need to spend the time understanding the industry, understanding the management track record, understanding what the strategic plan is, speak to competitors, [then] try and form your own views, which is just par for the course at this end of the market.

MF: That’s a good reason for an investor to seek a professionally operated fund rather than try to do it themselves? That all takes a lot of time.

NG: It does. 

I think there are plenty of good investors that have picked 1 or 2 or 3 stocks. It’s just hard to pick 20 plus. We try to give a portfolio return rather than just focusing our attention on 2 or 3 winners.

The post This ASX shares fund is closing. Manager reveals why appeared first on The Motley Fool Australia.

More reading

• Buying ASX shares? Why the ‘when’ is just as crucial as the ‘which’: expert
• What might trading volume tell us about the potential of an ASX share?
• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• 5 things to watch on the ASX 200 on Monday
• Are these 2 leading ASX 200 shares worth buying?

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/3ERM6bl

When it comes to buying ASX shares, most investors spend most of their time agonising about which ASX shares to choose. That’s fair enough seeing as the ASX is home to hundreds of different, individual companies. But it’s worth remembering the ‘when’ of buying a share can be just as consequential to the decision of ‘which’ ASX share to buy in the first place.

To illustrate, let’s take a look at the CSL Limited (ASX: CSL) share price. CSL is often regarded as one of the best ASX 200 blue chip shares on the ASX, largely thanks to its stellar share price run over the past decade or so. But its more recent share price performance has been patchy.

If an investor had picked up CSL shares exactly a year ago, they would be looking at a gain of roughly 4%. But if that same investor had picked up shares on 8 March this year, the gain today would instead be more than 21%. The ‘when’ certainly matters.

Which, when or whatever?

So how do we get a good grip on the ‘when’ then? Switzer Daily‘s Michael Gable gave us some ideas in a recent article. Here’s some of what he had to say:

Finding a good business is straightforward. What to buy is often not the problem. The main problem that I see is that investors find it hard to know when to buy…

We need to remember that something is only worth as much as what someone else is willing to pay for it… this means that you can do all the fundamental analysis in the world, but if the rest of the market isn’t buying your stock, then the share price will not go up and your capital won’t increase…

Once you have identified the business that you want to buy, it is important to pick it up at the right time. In an uptrend, a share price will swing higher and lower while all the time making upward progress. Many investors would like to buy it on the downswing, to get it cheaper… 

All downtrends start with a down day. So it is best to look for a stock that has already had its downwards movement but is just starting to tick higher again. 

Foolish takeaway

Of course, none of us can know when exactly is the best time to buy a share. And it’s almost universal investing gospel that trying to time the market is a foolish idea (and not the good kind of Foolish). But Gable implies that it is not the worst thing to try and make an educated, data-driven guess on a good-quality company.

Remember, the investing legend Warren Buffett once said this: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

The post Buying ASX shares? Why the ‘when’ is just as crucial as the ‘which’: expert appeared first on The Motley Fool Australia.

More reading

• This ASX shares fund is closing. Manager reveals why
• What might trading volume tell us about the potential of an ASX share?
• What’s the outlook for ASX biotech shares in 2022?
• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• CSL (ASX:CSL) share price lower after responding to M&A speculation

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. 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.

from The Motley Fool Australia https://ift.tt/31YX2pj

The Latrobe Magnesium Limited (ASX: LMG) share price is climbing today following a mining update from the company.

After surging to an intraday high of 11.5 cents in early trade, the Latrobe Magnesium share price dropped back to its previous closing price of 10.5 cents apiece. It has since reignited and is now trading 4.76% higher at 11 cents.

The company is developing a magnesium production plant in the Latrobe Valley, Victoria.

What did Latrobe tell investors today?

Latrobe Magnesium has purchased a property that includes several buildings from DG & J Di Fabrizio Steel Fabrications Pty Ltd.

The company said the buildings would be used to house its magnesium production plant.

The deal, worth $4.5 million, will include a combination of a $2.25 million cash payment and the issue of shares to the family.

The Di Fabrizzio family will receive $2.25 million worth of shares at a price of 10 cents. This is a 0.5 cent discount on the last closing price of 10.5 cents.

Latrobe Magnesium said the timing for this share release would be “subject to LMG refreshing its issuing capacity” at its AGM in January next year.

The company is using a patented extraction process to collect magnesium from a fly ash resource.

As previously reported, the company plans to sell refined magnesium to customers based in the United States and Japan.

Management commentary

In a statement signed off by Latrobe Magnesium CEO David Paterson, the company said:

The purchase of the site allows the company to plan its future expansions, obtain appropriate business insurance, save rent through the construction phase and benefit from its own site improvements.

LMG thanks the Di Fabrizio family for their patience and support during the last nine years required to develop the Latrobe Magnesium project.

Latrobe Magnesium share price snapshot

The Latrobe Magnesium share price has gained more than 511% in the past 12 months after rallying 378% this year to date.

The share has dropped 31% in the last month of trading but is up around 26% in the last week.

The company has a market capitalisation of about $171 million, based on the current share price.

The post What’s happening to the Latrobe Magnesium (ASX:LMG) share price today? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Latrobe Magnesium (ASX:LMG) share price is sinking 7% today
• Why is the Latrobe Magnesium (ASX:LMG) share price down again 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/3oLMyCC