Tag: Motley Fool

While the S&P/ASX 200 Index (ASX: XJO) climbs higher today, energy shares are holding the market back. In afternoon trade, coal shares are treading in negative territory after almost 200 countries from around the world agreed on a new climate deal at the COP26 summit yesterday.

At the time of writing, shares in Yancoal Australia Ltd (ASX: YAL), Whitehaven Coal Ltd (ASX: WHC), and New Hope Corporation Limited (ASX: NHC) are down 1.8%, 1.6%, and 0.5% respectively.

Doubt has been cast on the future of coal mining following the latest development.

ASX 200 in the green as ‘death knell’ sounded for coal power

A final agreement on global coal-fired energy production was reached over the weekend after an arduous process of negotiations. The deal, which includes 197 countries, has been labelled the most ambitious climate pact since The Paris Agreement in 2015.

In a bid to keep global warming at bay, ASX-listed coal shares are feeling the heat today. The deal is hoped to keep the world on track to cap global temperature rises at 1.5 degrees Celsius above pre-industrial levels.

While the terminology didn’t end up being exactly what some had hoped for, it is still being heralded as a major milestone. For instance, United Kingdom Prime Minister Boris Johnson inferred the deal is a deadly blow to the coal industry, stating:

Together, it is beyond question that Glasgow has sounded the death knell for coal power. It’s a fantastic achievement and it’s just one of many to emerge from COP26.

Johnson’s sentiment of impending doom coincides with energy shares weakening today. However, ASX 200 healthcare, consumer discretionary, and tech shares are leading the Aussie market higher.

The final deal that was agreed upon involves a “phase down”, rather than a “phase out”, of fossil fuels. This was the result of objections from India. In turn, other nations have warned the alteration will make it harder to achieve international targets.

Although, the semantics weren’t of concern to the executive director of Greenpeace International, Jennifer Morgan. The head of the global campaigning network noted the importance of the deal, stating:

They changed a word but they can’t change the signal coming out of this COP, that the era of coal is ending. If you’re a coal company executive, this COP saw a bad outcome.

ASX coal shares still ahead

Although the agreement sets a bleak outlook for companies in the coal-powered space, shares are still far ahead year on year.

A widespread energy shortage has bolstered fossil fuel shares over recent months. As a result, numerous coal shares have outperformed the ASX 200 over the last year.

The post Here’s why ASX 200 coal shares are in the spotlight today appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Monday
• Lockdowns are easing, but are CSL (ASX:CSL) shares out of the woods yet?
• ASX 200 (ASX:XJO) midday update: Incitec Pivot and Mesoblast jump, NAB drops
• ASX 200 lithium shares in focus amid China supply shortage
• 5 things to watch on the ASX 200 on Monday

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. 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/3qGMZzk

The S&P/ASX 200 Index (ASX: XJO) has kicked off the trading week on a disappointing note so far this Monday. At the time of writing, the ASX 200 has lost around 0.32% at 7,467 points so far. 

So let’s not dwell too much on that figure, and instead, let’s check out the ASX 200 shares that are currently topping the ASX trading volume charts, according to investing.com.

3 most active ASX 200 shares by volume on Thursday

Fortescue Metals Group Limited (ASX: FMG)

ASX 200 iron ore mining giant Fortescue is our first ASX 200 share to check out today. Fortescue has seen a hefty 10.26 million of its shares trade on the markets so far this Monday. With no news or announcements out of the company so far, we can probably assume this volume is the result of the movements in the Fortescue share price today.

Fortescue shares are currently up a healthy 1.02% to $15.91 each at the time of writing, a meaningful outperformance of the broader ASX 200. This is the likely reason why this company finds itself on this list today.

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium producer Pilbara is next up. Pilbara has watched a sizeable 13.69 million shares find new owners so far today. Again, there are no major developments out of Pilbara thus far this Monday, so we can probably assume this high trading volume stems from the volatility the Pilbara share price has shown over the trading day thus far.

Pilbara shares rocketed as high as $2.51 earlier this morning (a rise of close to 3%). However, these gains have tempered since, and Pilbara is currently trading at $2.46 a share, up a more muted 0.82% so far today. This volatility is the likely cause of such high trading volume.

Incitec Pivot Ltd (ASX: IPL)

And our final and most traded ASX 200 share so far today goes to the fertiliser and explosives manufacturer, Incitec Pivot. Incitec has seen a chunky 14.78 million of its shares bought and sold so far today. We can probably put this down to the full-year results this company released this morning before market open. As my Fool colleague James covered earlier, these results included the revelation that Incitec managed to grow its revenues by 10% over FY2021, with net profit after tax up 91% to $209 million.

Investors have clearly liked what they’ve seen, as the Incitec share price has popped by roughly 5% so far today to $3.28 a share. Investors sent the company up as high as $3.67 earlier today too (up 11.4%), so that would have also contributed to this high trading volume.

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

More reading

• Why Cardno, Incitec Pivot, Mesoblast, and WiseTech are storming higher
• Iron ore prices are flat, so why is the Fortescue (ASX:FMG) share price jumping higher today?
• These ASX 200 shares could be set to face fresh pressure over climate action
• Lockdowns are easing, but are CSL (ASX:CSL) shares out of the woods yet?
• ASX 200 (ASX:XJO) midday update: Incitec Pivot and Mesoblast jump, NAB drops

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

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

The DevEx Resources Ltd (ASX: DEV) share price is soaring to an all-time high. This comes despite the mining exploration company not providing any new announcements to the market today.

During afternoon trade, DevEx shares are swapping hands for 55.5 cents, up 20.65%. It’s worth noting that its shares have gained an astonishing 79% over the past week.

What’s driving DevEx shares higher?

A possible catalyst for the strong gains appears to be on the back of last week’s positive update.

According to a company announcement, DevEx advised it completed initial diamond drilling at the Sovereign Nickel-Copper-PGE Project at the Julimar Province in Western Australia.

The first two stratigraphic diamond drill-holes intersected a thick intrusive sequence of metamorphosed gabbronorite, norite and ultramafic rocks. The discovery exceeded the company’s expectations, which led investors to snap up DevEx shares in the days between.

Both diamond drill holes are currently being logged in detail, while sampling of the core analysis is unerway. Should the geological observations be confirmed, the official results could further accelerate the DevEx share price.

DevEx managing director Brendan Bradley commented:

We are methodically ticking the boxes towards what we all hope will be a game-changing discovery at Sovereign. The outcomes of these two widely-spaced stratigraphic holes have exceeded our expectations and given us confidence that we are very much on the right track with our exploration approach.

Down-hole electromagnetics (EM) is scheduled to survey both diamond holes later this month. Further diamond drilling is also planned to test the intrusion, with the diamond rig available next month to continue drilling.

The survey is anticipated to take a number of months to complete, given the scale of the defined intrusion.

DevEx share price recap

2021 saw the DevEx share price trade sideways until May and June. The company’s gold and copper assays at its Junee Project in New South Wales excited investors at the time.

However, a sharp fall from June came on the back of profit-taking after DevEx shares reached a previous record high of 53 cents. Since then, its shares have zoomed upwards, reflecting positive investor sentiment.

DevEx has a market capitalisation of around $166 million, with more than 307 million shares on its books.

The post Why is the DevEx (ASX:DEV) share price up 21% on Monday? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Monday
• Bitcoin (CRYPTO:BTC) price resilience takes on gold as investors seek inflation protection
• Why Cardno, Incitec Pivot, Mesoblast, and WiseTech are storming higher
• Iron ore prices are flat, so why is the Fortescue (ASX:FMG) share price jumping higher today?
• Could the Rio Tinto (ASX:RIO) share price be set to leap 25%?

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

from The Motley Fool Australia https://ift.tt/3qzuIE8

The Bitcoin (CRYPTO: BTC) price is up 1.5% over the past 24 hours.

The world’s biggest crypto by market valuation is currently worth US$65,647 (AU$89,921), according to data from CoinMarketCap.

Today’s bump leaves the Bitcoin price slightly higher than this time last week. But the token has slid 4.5% from last Wednesday’s (Thursday Aussie time) fresh all-time highs of US$68,789.

That new record high, according to Simon Peters, crypto analyst at multi-asset investment platform eToro, was “triggered by painfully high inflation numbers from the US.”

How are inflation concerns spurring the Bitcoin price?

Inflation concerns are nibbling away at investor confidence across developed nations.

In the United States, the world’s largest economy, the latest inflation figures hit the news on Wednesday, 10 November. That data showed that the consumer price index (CPI) gained an eyewatering 6.2%, the fastest year-on-year rate of price increases in 30 years.

Not coincidentally, the Bitcoin price took off on the news, with inflation fears accounting for perhaps half the price momentum.

According to Björn van Roye and Tom Orlik, with Bloomberg Economics, “Our model shows that for Bitcoin, the importance of inflation and hedging against uncertainty become more important drivers over time, accounting for 50% of price moves in the latest cycle relative to 20% in 2017.”

eToro’s Peters agrees, saying:

It is eye-opening to see the price react so spectacularly in this way. Not only is it a signal that the market is extremely averse to inflationary pressure, it is a sign investors are now firmly using Bitcoin as a hedge against rising prices. It is also a sign that institutional investors may be participating in ‘buying the news’ as this is the sort of movement we’d typically associate with other markets that react heavily to economic news.

Strahinja Savic, head of data and analytics at crypto derivatives provider FRNT Financial Inc, adds (quoted by Bloomberg):

Not only is the dilution of Bitcoin much less aggressive than USD over the last six years, it’s also much more consistent, not susceptible to political whims and, of course, predictable. Bitcoin’s programmed predictability contrasts it from the uncertain policy decisions that impact the dollar.

Chris Weston, head of research at Pepperstone Financial Pty Ltd drew the parallel with a rising Bitcoin price and gold, the historic inflation hedge of choice, trending higher as investors mull the fact that inflation may be running hotter for longer than expected.

“The last few days we’ve seen some really big information coming through which has made people want to go out and hedge themselves against inflation risks,” Weston said. “Bitcoin’s been doing well, crypto’s done well as a hedge I suppose, gold’s been moving up concurrently with the stronger dollar.”

Not all inflation hedges are created equal

The Bitcoin price may have spiked to new records on the outsized inflation figures coming out of the US.

But caution remains in order for investors hoping the cryptocurrency will protect their portfolios from fast rising prices.

According to Wilfred Daye, head of Securitize Capital (quoted by Bloomberg), “We don’t have long enough history to assert Bitcoin is indeed an inflation hedge. I would argue that gold is a better inflation hedge still. But Bitcoin as an inflation hedge is a new sexy concept – people love new ideas.”

Cam Harvey, a partner at Research Affiliates, pointed to the Bitcoin price plunge of some 50% during the February and March 2020 COVID-fuelled share market rout:

It behaves like a speculative asset… Investors need to be cautious if they’re thinking that an allocation to Bitcoin is going to provide short-term inflation protection because we know if inflation goes up unexpectedly that that’s bad for equities. And if something’s bad for equities, that could lead to a risk-off trade.

Peters concludes:

It remains to be seen how far this price spike will extend. From an investor perspective what’s key is understanding the intrinsic investment case for the cryptoasset. Anyone interested in the market should do their research thoroughly instead of just buying on the back of Bitcoin price movements.

Over the past month the gold price is up 5.3%, with an ounce of gold currently worth US$1,860.

The Bitcoin price has just edged out the yellow metal, up 6.3% since this time last month.

The post Bitcoin (CRYPTO:BTC) price resilience takes on gold as investors seek inflation protection appeared first on The Motley Fool Australia.

More reading

• Here’s why Bitcoin hit a new all-time high on Wednesday
• Looking for crypto investing advice? Why your financial adviser’s lips may be sealed
• Why Bitcoin hit all-time highs on Tuesday
• The total value of crypto just surpassed US$3 trillion, what’s next?
• Why Dogecoin, Shiba Inu and Bitcoin investors should ‘follow’ Elon Musk

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

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decent gain. At the time of writing, the benchmark index is up 0.35% to 7,469 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Cardno Limited (ASX: CDD)

The Cardno share price is up 3.5% to $1.62. This morning the company announced the strategic review of its International Development Business. This will include an assessment of acquisition, merger or sale options with a view to enhancing value for Cardno shareholders. Cardno also notes that it has received a number of unsolicited approaches in relation to the business in recent weeks.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is up 5% to $3.28. This follows the release of the agricultural chemicals company’s full year results this morning. Incitec Pivot reported a 10% lift in revenue to $4,348.5 million and 91% jump in net profit after tax (NPAT) excluding individually material items to $209 million. The Fertilisers APAC business drove the strong result. It benefited from a commodity price upswing and strong ammonium phosphates production.

Mesoblast limited (ASX: MSB)

The Mesoblast share price has jumped 12% to $1.91. Investors have been buying the allogeneic cellular medicines developer’s shares after it released positive data from a phase three trial. That trial was studying rexlemestrocel-L in 565 patients with New York Heart Association class II and class III chronic heart failure with reduced ejection fraction. The data revealed some very promising results which has got investors excited.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is up 2.5% to $56.02. This is despite there being no news out of the logistics solutions company today. However, a number of tech shares are pushing higher today following a strong night of trade for the Nasdaq index on Friday. The S&P/ASX All Technology Index is up 1.1% at the time of writing.

The post Why Cardno, Incitec Pivot, Mesoblast, and WiseTech are storming higher appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares could be set to face fresh pressure over climate action
• ASX 200 (ASX:XJO) midday update: Incitec Pivot and Mesoblast jump, NAB drops
• Mesoblast (ASX:MSB) share price surges 9% higher on trial update
• Incitec Pivot (ASX:IPL) share price leaps 17% after 91% profit jump
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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/3Fdbmc0

The Fortescue Metals Group Limited (ASX: FMG) share price is having a good day’s trade on the ASX for no obvious reason.

In fact, the spot price of the company’s major commodity, iron ore, is flat at US$93.40.

At the time of writing, the Fortescue Metals share price is $15.95, 1.24% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.33% right now. The All Ordinaries Index (ASX: XAO) is also up, having gained 0.4%.

Let’s take a look at what’s going on with this ASX mining share today.

What’s driving the Fortescue share price?

While the Fortescue share price’s gains are unexplained, it isn’t alone in having a good day on the ASX.

Many of the company’s peers are in the green, boosting the S&P/ASX 200 Materials Index (ASX: XJM) higher in early trade.

Incitec Pivot Ltd (ASX: IPL) is one of the sector’s winners today. It’s posting a 5% gain on the back of its full-year results.

Meanwhile, Fortescue’s fellow iron ore giants aren’t fairing so well.

Right now, the BHP Group Ltd (ASX: BHP) share price is down 0.89%. Rio Tinto Limited (ASX: RIO) shares aren’t doing much better, showcasing a 0.55% tumble.

There’s been no news to explain Fortescue’s gains today. However, the company’s chair did appear in the media yesterday.

Fortescue chair Andrew ‘Twiggy’ Forrest was interviewed by Sydney Morning Herald columnist and author Peter FitzSimons on Thursday. The resulting conversation was published yesterday.

The interview focused on Fortescue’s moves toward producing green energy and hydrogen power in Australia.

FitzSimons’ interview (and Forrest’s condemnation of Australia’s diesel fuel rebate) was quickly critiqued by Australian Financial Review columnist Joe Aston.

Perhaps, the media attention might have shifted the market’s focus back onto Fortescue Metals’ green ambitions – expected to be realised through its subsidiary, Fortescue Future Industries.

Right now, the Fortescue Metals share price is 11% higher than it was this time last month. However, it’s still 32% lower than it was at the start of 2021.

The post Iron ore prices are flat, so why is the Fortescue (ASX:FMG) share price jumping higher today? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Why are ASX 200 resources shares booming again on Friday?
• Why Calix, Fortescue, Link, and Zip shares are jumping today
• ASX 200 (ASX:XJO) midday update: BHP & Fortescue rise, Zip completes acquisition
• Fortescue (ASX:FMG) share price climbs 5% as iron ore rebounds

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

from The Motley Fool Australia https://ift.tt/3otDC3h

The Rio Tinto Limited (ASX: RIO) share price is having a subdued start to the week.

In afternoon trade, the mining giant’s shares are down almost 1% to $91.53.

Where next for the Rio Tinto share price?

One leading broker that believes Rio Tinto’s shares could be heading higher from here is Citi.

According to a note this morning, the broker has retained its buy rating and $115.00 price target on the company’s shares.

Based on the current Rio Tinto share price, this implies potential upside of over 25% for investors.

But it gets even better, with Citi forecasting a ~$11.00 per share fully franked dividend in FY 2022. If you include this, the total potential return stretches to almost 38%.

What did the broker say?

Citi is bullish on the Rio Tinto share price largely due to its exposure to aluminium. The broker expects the aluminium market to fall into a deep deficit in 2022. This is expected to be driven by growing demand and tight supply.

In addition to this, Citi sees Rio Tinto as well-positioned to benefit from demand for higher grade iron ore from China.

Anything else?

The broker has previously spoken about the company’s decarbonisation plans. While this led to a reduction in its earnings estimates to account for higher production costs, it wasn’t enough to put Citi off. This is due to its generous yield outlook and the attractive Rio Tinto share price.

Citi commented: “RIO has gone earlier than peers on decarbonisation commitments and set out capital cost estimates. Others will likely have to follow suite. That said, what caught our attention was the implied mid-term increases in Pilbara iron ore unit costs and higher sustained capex. We’ve reduced CY23/24E NPAT by 9%/10% and reduced our DCF. Nevertheless, RIO trades on CY23E EV/EBITDA of 4.5x at $80/t Fe for a div. yield of ~8% and at an 18% discount to our DCF. We stay Buy-rated.”

The post Could the Rio Tinto (ASX:RIO) share price be set to leap 25%? appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares could be set to face fresh pressure over climate action
• Leading brokers name 3 ASX shares to buy today
• Why are ASX 200 resources shares booming again on Friday?
• Fortescue (ASX:FMG) share price surges 9% to shrug off falling iron ore price
• Why the Rio Tinto (ASX:RIO) share price underperformed the materials sector over the last 3 months

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/30pOOWs

Shares in minerals explorer Minerals 260 Ltd (ASX: MI6) are charging higher to trade more than 20% in the green at 70 cents.

Minerals 260 shares have rallied from the open to trade as high as 74 cents, before reversing course to the current market price.

Investors have been bidding up the Minerals 260 share price following a company announcement on its 100% owned Moora Gold-PGE-Nickel-Copper project in WA.

The company has started its inaugural drilling program since demerging from Liontown Resources Ltd (ASX: LTR) and listing on the ASX in October 2021.

Here are the details.

What is Minerals 260?

The company was listed on the ASX after a successful demerger from Liontown where it raised $30 million via an initial public offering (IPO). This saw the creation of Minerals 260.

It was formed to contain Liontown’s non-lithium assets, which include Moora and the Koojan Project located in southwest Western Australia.

That was on 12 October and since then, the Minerals 260 share price has climbed more than 35%, roaring off a low of 45.5 cents last week to its new high today.

At the time of writing, Minerals 260 has a market capitalisation of almost $153 million.

What was announced?

Minerals is set to commence its first drilling program at the Moora project, located around 150km northeast of Perth.

The Moora project forms part of a 1,100km square land package that also includes adjacent projects to the Angepena prospect.

A 3,500 metre diamond core drilling program is designed to follow up on intersections reported earlier this year from the Angepena gold prospect.

Those results showed an intersection of gold at various depths and with various concentrations in the samples.

Diamond core drilling at the site will now determine the style, orientation and continuity of the mineralisation.

Geological data obtained will then be used to plan a 6,000m reverse circulation (RC) drilling program, due to start this month.

In addition to drilling at Angepena, Minerals 260 also intends to undertake follow up drilling at other targets and complete a low-level “aeromagnetic survey to better define prospective mafic/ultramafic units obscured by transported cover”.

The results of all works to be completed will be used to plan further drilling programs, Minerals 260 says.

Minerals 260 share price snapshot

Investors are rallying for a spot in the newly-formed minerals explorer, with total volume traded so far today reaching 2,715,603 shares – 46% above its 4-week average since listing.

After its 35% return since 12 October, early investors will be happy as this gain is well ahead of the S&P/ASX 200 Index (ASX: XJO)’s climb in that time.

Shares in Liontown Resources are also trading up 6.05% on the day at $1.665 apiece.

The post Why is the Minerals 260 (ASX:MI6) share price rocketing 21% today? appeared first on The Motley Fool Australia.

More reading

• This young stock picker bought Afterpay (ASX:APT) at $20. Here’s which ASX shares she likes now
• Why the Nexus Minerals (ASX:NXM) share price is rocketing 22% to an all-time high today
• Why the Mineral Resources (ASX:MIN) share price is storming higher
• Why is the Poseidon Nickel (ASX:POS) share price having such a great day?
• These ASX 200 shares could be set to face fresh pressure over climate action

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

from The Motley Fool Australia https://ift.tt/3c9uY4g

There aren’t too many ASX-listed shares that can lay claim to a 10 bagger return in less than 2 years, and there are even fewer fund managers that can say they picked one. However, that’s exactly what Firetrail Investments fund manager, Eleanor Swanson managed to do with Afterpay Ltd (ASX: APT).

The young and passionate stock picker eyed-off the buy now, pay later (BNPL) company despite a wall of pessimism towards the instalment payment provider. However, Swanson made a compelling case that eventually won over her peers, leading to a highly rewarding investment for Firetail and its investors.

After having already landed the pick of a lifetime, Swanson is naming more ASX shares that are looking good right now.

Appealing ASX shares on Swanson’s radar

Channelling that millennial spirit, Eleanor led Firetrail Investments to buy Afterpay when it was around $20. However, the analyst had been keeping tabs on the company prior to it cracking $10. However, Swanson’s ASX stock-picking prowess extends beyond payments.

With a university background in science, the successful analyst is no stranger to ASX healthcare and biotech shares. Majoring in immunology, Swanson is quick to delve into complex medical terminology — exhibiting a deep understanding that comes in handy when evaluating the likes of Aroa Biosurgery Ltd (ASX: ARX). The fund jumped on the soft-tissue regeneration company pre-IPO and still maintains its holding.

Another ASX share that Swanson has had a hand in picking is Beacon Lighting Group Ltd (ASX: BLX). In speaking with The Australian the Firetrail analyst said:

Eighteen months ago, we cottoned on to the fact they were rolling out a trade strategy instead of just focusing on the retail market.

It has been a great performer for the fund. Finding that angle gave us a great point of differentiation to model out the earnings.

In addition, the fund is bullish on outdoor advertising company oOh!Media Ltd (ASX: OML). Despite trading above its pre-COVID levels when accounting for dilution, Swanson believes the market is underestimating how strong the advertising market is going to be next year.

A secret tech play

Having more than proved her abilities, Eleanor Swanson is set to share another ASX tech share at the Sohn Hearts & Minds conference on 3 December 2021. At this stage, the exact company is under wraps, but we know it’s a small-cap Australian company in the tech space.

It is an Australian company which has built a product here and is now taking it offshore and building a global business.

Eleanor Swanson, Firetrail Investments

Investors who tune in will hear Eleanor make the case for this ASX tech share, possibly much like she did for her bet on Afterpay not too long ago.

The post This young stock picker bought Afterpay (ASX:APT) at $20. Here’s which ASX shares she likes now appeared first on The Motley Fool Australia.

More reading

• A bumper Christmas, Afterpay goes banking, and good news on credit. Scott Phillips on Weekend Sunrise
• Beyond BNPL: Here’s how Afterpay (ASX:APT) is also targeting spendings and savings
• ASX 200 tech shares in focus as Nasdaq plunges 1.7%
• Why Afterpay, Immutep, Pushpay, and Vulcan shares are falling
• Afterpay (ASX:APT) share price lifts despite hospitality push creating concerns

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended oOh!Media Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3c8ILIq

The Nexus Minerals Ltd (ASX: NXM) share price has come out of a trading halt on Monday to reach a record high. This comes after the gold explorer announced an update on its recent capital raise.

At the time of writing, Nexus shares are up a sizeable 22% to an all-time high of 61 cents. In the past week alone, its shares have now risen more than 32%.

Nexus completes placement

Investors are buying up Nexus shares as the company seeks to progress its exploration activities at the Wallbrook Gold Project.

According to its announcement, Nexus said it has received firm commitments for its institutional placement to raise $19 million before costs. The company highlighted that it had strong support from both domestic and offshore institutional investors.

The offer will see approximately 41.3 million new ordinary shares issued at a price of 46 cents apiece. This represents an 8% discount to the last closing price of 50 cents on 10 November (before going into a trading halt).

The company will primarily use the proceeds to fund drilling activities at the Crusader-Templar prospect and other regional exploration activities.

In particular, the funds will be allocated to the following:

• Crusader-Templar Prospect reverse circulation and diamond drill programs;
• Solomon Prospect reverse circulation and diamond drill programs;
• Regional target generation and aircore, reverse circulation and diamond drill programs;
• Regional geophysical surveys; and
• General working capital.

Settlement of the new shares is expected to occur on Monday 22 November.

Nexus managing director Andy Tudor commented:

The proceeds from the placement will allow Nexus to expedite and ramp-up exploration programs at the Wallbrook Gold Project, where the company has been having exploration success at the Crusader-Templar Prospect in recent drill programs. To have achieved such a strong level of institutional and sophisticated investor support for the placement was very encouraging and a strong endorsement of the company’s endeavours.

Nexus Minerals share price summary

Adding to today’s gains, Nexus shares have pushed around 250% higher in the past 12 months. However, when looking at year-to-date, the company’s shares are hovering around upwards of 370%.

Based on valuation grounds, Nexus presides a market capitalisation of around $150.46 million, with almost 247 million shares outstanding.

The post Why the Nexus Minerals (ASX:NXM) share price is rocketing 22% to an all-time high today? appeared first on The Motley Fool Australia.

More reading

• Why the Mineral Resources (ASX:MIN) share price is storming higher
• Why is the Poseidon Nickel (ASX:POS) share price having such a great day?
• These ASX 200 shares could be set to face fresh pressure over climate action
• Here’s why the Incannex (ASX:IHL) share price has rocketed 60% in a month
• Westpac (ASX:WBC) just sealed a record bond deal. What could this mean for shareholders?

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

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