Tag: Motley Fool

Today, the S&P/ASX 200 Index (ASX: XJO) has delivered its third consecutive day of gains. At the end of the day, the benchmark index finished 0.39% higher at 7,456.9 points.

Only two sectors finished in the red on Friday, with those being information technology and energy. A fall in oil prices overnight and a weak session for Afterpay following Square’s results put pressure on their respective sectors. Meanwhile, communication services, utilities, and consumer staples helped the Aussie index higher.

The question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Link Administration Holdings Ltd (ASX: LNK) was the biggest gainer today. Shares in the administration services company jumped 8.31% following a takeover offer from a private equity firm. Find out more about Link Administration Holdings here.

The next biggest gaining ASX share today was Northern Star Resources Ltd (ASX: NST). Shares in the gold mining company climbed 6.20% higher after gold prices rallied overnight. Uncover the latest Northern Star Resources details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Link Administration Holdings Ltd (ASX: LNK)	$4.69	8.31%
Northern Star Resources Ltd (ASX: NST)	$9.59	6.20%
Cromwell Property Group (ASX: CMW)	$0.855	5.56%
REA Group Ltd (ASX: REA)	$176.02	5.11%
Evolution Mining Ltd (ASX: EVN)	$3.72	4.79%
Pro Medicus Ltd (ASX: PME)	$61.10	3.77%
Imugene Ltd (ASX: IMU)	$0.59	3.51%
Newcrest Mining Ltd (ASX: NCM)	$25.02	3.39%
Steadfast Group Ltd (ASX: SDF)	$4.97	2.69%
Liontown Resources Ltd (ASX: LTR)	$1.935	3.65%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Friday
• Why is the Virgin Money UK (ASX:VUK) share price down 11% today?
• Why Jumbo, Link, News Corp, and REA shares are storming higher
• Which tech shares are dragging down the ASX 200 on Friday?
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Link receives takeover offer

Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Link Administration Holdings Ltd, Pro Medicus Ltd., and Steadfast Group Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended REA Group Limited and Steadfast Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shiba Inu (CRYPTO: SHIB) is having a rotten day.

The dog-themed token, which was a rising crypto star in October, is down 21.0% over the past 24 hours, currently trading for .0047 US cents.

The original Shiba Inu-themed crypto, Dogecoin (CRYPTO: DOGE), is also in the red over the last 24 hours, but down a more moderate 2.5%, according to data from CoinMarketCap.

Shiba Inu, created in August 2020 and verified on the Ethereum blockchain, calls itself “the Dogecoin killer” on its website. And last month it looked to be living up to that claim.

Shiba Inu gained 552% in October. Dogecoin, meanwhile, gained 40%. Not quite “killed”, but certainly outperformed.

What’s driving the Shiba Inu selloff?

The big Shiba Inu price crash looks to be spurred by fears that a crypto “whale” could be positioning themselves to sell some or all of their billions of dollars worth of holdings of the token.

Crypto investors could be spooked after news emerged that the whale is shifting the tokens into different wallets.

According to Tom Robinson, co-founder of blockchain analytics firm Elliptic (quoted by Bloomberg):

It looks like there were four transactions out of that account yesterday [Tuesday], each sending $695 million of SHIB to a different account – so a total of $2.78 billion. Whoever it is purchased the SHIB on Uniswap about a year ago, for not very much.

So why is it so hard to track who owns and is moving some US$2.8 billion (AU$3.7 billion) worth of Shiba Inu tokens around in a day?

Crypto investor Aaron Brown, writing for Bloomberg Opinion, explained:

Legitimate crypto is fully transparent about transactions, code and other matters — but is usually opaque about matching transactions to individuals. This is the opposite of the banking system, which is opaque about everything except personal identification.

Wild speculation among retail investors is also likely stoking the rapid losses for the self-proclaimed Dogecoin killer.

Global multi-asset investment platform eToro’s market analyst Josh Gilbert told the Motley Fool, “As these crypto assets have limited use cases, we often see investors not wanting to hold them for the long term, but instead move capital into more significant investments with robust use cases such as Bitcoin (CRYPTO: BTC) or Ethereum (CRYTPO: ETH).”

Gilbert added: “Although Shiba Inu and Dogecoin have grown in popularity and still have some use cases, they lack the long-term benefits that other crypto assets offer.”

Why have these ‘dog coins’ soared in value recently?

“Both these crypto assets have two characteristics in common, and that’s their communities,” Gilbert told the Motley Fool.

“They have loyal, vocal, and committed community members that help attract new investors and new platforms to list these tokens.”

Then there’s the power of social media, a driving force behind the crypto retail army.

According to Gilbert:

Although both Dogecoin and Shiba Inu have some use cases and utility, the main reason for their growth comes down to the number of consumers trading these crypto assets. It’s the power of the people, and we are seeing this drive the performance of these crypto assets. For example, Shiba Inu has over 1.7 million followers on Twitter and Dogecoin has around 2.4 million.

“On top of this,” Gilbert said, “you also have influencers with large followings that attract even more trading volume. The biggest of them all would be billionaire Elon Musk, with his Shiba Inu puppy and his vocal support of Dogecoin.”

Bloomberg Intelligence analyst Mike McGlone said: “Shiba Inu presents a unique blend of exploitation, good marketing, ESG, supply versus demand economics and gambling on an unprecedented 24/7 global scale, and faces reversion worthy of its parabolic rise.”

Gilbert agreed that once some juicy gains are on the table, the selling frenzy may start:

Retail investors are driving the gains, and when we see prices gain 50%, 100%, and 150% in a few days, it attracts other retail investors to these crypto assets. Once the price drives higher, investors will begin to take profits, mainly when it reaches new highs. This, in turn, causes volatility.

We’ll wrap up with this cautionary note on ‘meme coins’ from Aaron Brown:

Legitimate crypto has a solid underlying economic case, its value does not depend heavily on who holds how much of it. But for crypto with no underlying economics – whose value is determined only by speculation – concentrated ownership suggests a rigged game.

The post Shiba Inu crashes and Dogecoin slides. What’s happening with the ‘dog coins’? appeared first on The Motley Fool Australia.

More reading

• Shiba Inu crashes 28% as Dogecoin soars. What’s next for the dog coins?
• Why cryptocurrencies are moving wildly today
• ASX set to welcome first cryptocurrency ETF… but there’s a catch
• How these top 3 cryptos performed in the first quarter of FY22

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.

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October was a good month for many ASX media and communication shares, but some performed better than others.

Not to spoil the surprise, but the media stocks that outperformed their peers probably aren’t the ones you are expecting…

The 5 top performing ASX media shares of October

A quick note; this list only includes shares with market capitalisations of more than $100 million.

Enero Group Ltd (ASX: EGG)

The Enero share price has outperformed those of all its ASX media and communications-focused peers.

Through the month of October, it gained 30.69% to finish at $3.96.

Last month, Enero announced the September quarter had seen it with 22.6% more revenue and 50% more earnings before interest, tax, depreciation, and amortisation (EBITDA) than the same quarter of financial year 2021.

The company operates a number of brands in the communications and marketing spheres.

HT&E Ltd (ASX: HT1)

Coming in second best is HT&E, also known as Here, There & Everywhere.

The radio, audio, and digital content business saw its share price grow by 17.68% over the course of October to finish the month’s final session at $1.93.  

The big news from HT&E last month was the settlement of a longstanding taxation dispute with the Australian Taxation Office.

IVE Group Ltd (ASX: IGL)

The IVE Group share price had a great October on the ASX. It gained 16.23% to end the period at $1.79.

The print and marketing company’s stock was boosted by news of 2 acquisitions, both expanding IVE’s retail display operations.

Gtn Ltd (ASX: GTN)

The Gtn share price also outperformed many of its peers over October, gaining 14.13% to finish at 52.5 cents.

Gtn – Global Traffic Network – provides traffic reports to radio stations in Australia, the United Kingdom, Canada, and Brazil. As compensation for supplying such reports, Gtn is generally given advertising slots. It then bundles and sells the slots to other parties.

There was no word from the company to explain its stock’s surge last month.

NZME Ltd (ASX: NZM)

Finally, the crown for the fifth best performing media share of the month of October goes to NZME – New Zealand Media and Entertainment.

The company operates more than 50 print, radio, and digital media brands.

The NZME share price gained 13.27% over October. It finished the month trading at $1.11.

There were a number of announcements from NZME over October.

First, it updated the market on the impacts it was facing as COVID-19-induced lockdowns continued in New Zealand. The company’s advertising revenue was hit by the lockdown. However, it remained 7% higher than during the prior corresponding period. The company also provided EBITDA guidance for the 2021 calendar year.

It later completed the sale of its GrabOne business.

The post These were the 5 best performing ASX media shares in October appeared first on The Motley Fool Australia.

More reading

• What happened to the HT&E (ASX:HT1) share price on Tuesday?
• Why Jefferies sees 35% upside in the HT&E (ASX:HT1) share price
• Why HT&E, JB Hi-Fi, Reece, and ResMed shares are charging higher
• Here’s why HT&E (ASX:HT1) share price is rocketing 31% today
• Enero (ASX:EGG) share price leaps 22% to 52-week high. Here’s why

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

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Today has seen the S&P/ASX 200 Index (ASX: XJO) looking to finish the trading week on a positive note. The ASX 200 is currently up by 0.46% to 7,463 points.

Let’s take a look at the ASX 200 shares that are topping the trading volume charts today, according to investing.com.

3 most active ASX 200 shares by volume on Friday

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is our first ASX share to check out today. This ASX blue-chip has seen a sizeable 11 million shares finding new owners so far this Friday.

With no major news out of the telco today, we can assume this elevated trading volume is on the back of healthy share price growth today. Telstra is currently up a robust 1.15% at $3.98 a share. This is getting pretty close to its 52-week high of $4.05. Telstra has also been buying back its own shares recently, so this could be a contributing factor as well.

Virgin Money UK (ASX: VUK)

ASX-listed but British-based bank Virgin Money UK is our next cab off the rank. Virgin Money has seen a hefty 11.47 million shares change hands so far today. This volume can likely be put down to the trading update Virgin Money released to investors yesterday evening.

Despite some improvements across the board with its metrics, investors were clearly wanting more given the Virgin Money share price is down a nasty 11.4% today to $3.14 a share. This steep share price fall is almost certainly behind the elevated trading volumes we are seeing this Friday.

Alumina Limited (ASX: AWC)

Aluminium processor Alumina is our final and most traded ASX 200 share this Friday. An impressive 13.3 million shares have been bought and sold so far today. There are no announcements out of Alumina today.

This ASX 200 company has had a rough couple of weeks. Its shares were downgraded by a major broker and its chief financial officer resigned. Together with today’s nasty 2.75% drop to $1.87 a share so far, we have the probable reasons for its high trading volume today.

The post Here are the 3 most heavily traded ASX 200 shares this Friday appeared first on The Motley Fool Australia.

More reading

• Why is the Virgin Money UK (ASX:VUK) share price down 11% today?
• Why Afterpay, Clinuvel, Inghams, and Virgin Money UK shares are tumbling
• Which tech shares are dragging down the ASX 200 on Friday?
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Link receives takeover offer
• Expert highlights big threat to the Zip (ASX:Z1P) share price

Motley Fool contributor Sebastian Bowen owns shares of 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 shares of 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.

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The News Corp (ASX: NWS) share price is having a moment in the sun today. This follows the media giant’s announcement of its first-quarter results for FY22.

At the time of writing, shares in the company are gliding 8.9% above their previous close at $34.52. With today’s strong price appreciation, News Corp shares are now only 2% away from setting a new 52-week high.

What’s moving the News Corp share price today?

Investors are sending the News Corp share price skywards to finish the week. Given the company released its first-quarter results prior to the market opening today, it is likely that the market is fixated on details within this announcement.

As we covered earlier, the large media outlet handed down a solid quarter performance. Not only did revenue grow by 18% year on year to $2.5 billion, but earnings also increased by more than a factor of five.

The uptick in operations wasn’t reduced to only one segment either. All five News Corp’s business segments reported revenue growth. Most noticeably, digital real estate services posted a massive 47% leap in revenue compared to the prior year.

However, the biggest contributor in terms of growth to the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) was the subscription video services segment. According to the release, EBITDA for this segment increased 46% to $114 million.

The subscription video services part of News Corp incorporates streaming services such as Foxtel, Kayo, and BINGE. At the end of the quarter, Foxtel subscribers had reached 3.9 million, increasing 17% year on year. The improved earnings margin was the product of lower sports programming rights and production costs.

Making sense of the valuation

After the improvement in News Corp quarterly numbers, analysts are likely running the numbers again to check against their price targets.

If we summarise the net income of Q2, Q3, and Q4 of FY21 with our latest Q1 FY22 results, we can get an indication of the company’s trailing 12-month earnings. With some quick back-of-the-napkin math, this works out to be ~$427 million.

Based on the current News Corp share price and our calculated 12-month trailing earnings, News Corp is currently trading on an approximate price-to-earnings (P/E) ratio of 44 times.

The post News Corp (ASX:NWS) share price rallies 8% on market-moving quarterly appeared first on The Motley Fool Australia.

More reading

• Why Jumbo, Link, News Corp, and REA shares are storming higher
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Link receives takeover offer
• News Corp (ASX:NWS) share price in focus as first quarter delivers growth
• 5 things to watch on the ASX 200 on Wednesday

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.

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Shares in Domino’s Pizza Enterprises Ltd (ASX: DMP) took a beating yesterday and closed the session 18% lower at $116.20.

That’s a $26 per share loss for the pizza giant in a single day, as investors responded to its annual general meeting (AGM) update.

Today, the Domino’s share price has lost a little more ground and is down 0.37% to $115.69 in afternoon trading.

The team at investment bank Goldman Sachs retains its buy rating on Domino’s shares. However, fellow brokers aren’t so rosy on the outlook for Domino’s. So, they’ve trimmed their price targets in response to the announcement.

Here are the details.

What led us to this point?

Before we analyse what the experts are saying, let’s review what led to the Domino’s share price taking such a hit.

Investors appear to be spooked by the company’s performance in Japan, which was surprisingly weak for the period.

Domino’s has an aggressive ‘rapid store rollout’ strategy in the region. It has grown its store base to 742 restaurants in 2020 from just 200 a decade ago.

Even though the Japanese government has rolled back COVID-19 restrictions, Domino’s recognised negative growth in FY21.

As a result, Domino’s management was unable to give guidance for FY22 at the AGM. Not even to confirm or deny whether earnings would come in behind or in front of FY21.

This bodes poorly for the Domino’s share price. As pointed out by investing hall-of-famers Warren Buffet and Peter Lynch in their writings, the market prices shares based on past earnings and future earnings expectations.

The absence of a robust outlook in Japan appears to have disappointed investors. It has left many of their questions on expectations unanswered, and this is reflected in yesterday’s share price losses.

What are brokers saying in response?

Leading brokers Citi, Morgans, Jarden, and Bell Potter have slashed their price targets for the Domino’s share price.

Citi lowered its price target by almost $4 per share to $144.25. It also trimmed its forecast for earnings per share (EPS) by 8% and Japan store sales by 1%.

The weak performance surprised the Citi team. It said it is “flagging risk to FY22 sales given the current negative momentum comes ahead of the material Christmas trading period”.

Analysts at Bell Potter also gave their price target a buzz-cut, wiping 16% off their valuation to $130 per share.

Jarden Securities also reduced its price target by 6% to $113, implying 2.3% downside potential on today’s share price.

Fellow broker Morgans doesn’t interpret the Japan slowdown as a signal that Domino’s is failing there. The broker notes: ” … nor does it suggest the strategy of rapid store roll out and ‘fortressing’ has lost any of its validity”.

Morgans hasn’t budged on its ‘hold’ recommendation but has slashed its Domino’s share price target by 7.5% to $135.

Goldman Sachs retained its ‘buy’ rating but also trimmed its Domino’s share price target by more than 5% to $147.

Domino’s share price snapshot

Over the past year, the Domino’s share price has risen by 37% compared to the S&P/ASX200 index gain of 21.5%.

The post Targets slashed: Why these top brokers aren’t so rosy on the Domino’s (ASX:DMP) share price appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• Top broker says Domino’s (ASX:DMP) share price is cheap after selloff
• Why Domino’s, Inghams, Kogan, and Paradigm shares are sinking
• ASX 200 (ASX:XJO) midday update: Zip’s record month, Domino’s crashes
• Why the Domino’s (ASX:DMP) share price is crashing 19% today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is well on the way to ending the week on a strong note. The ASX 200 is presently up a healthy 0.54% to 7,467 points. But one ASX 200 share isn’t joining the party this Friday. That would be the Virgin Money UK (ASX: VUK) share price.

Virgin Money UK shares are, at the time of writing, down a nasty 11.27% to $3.15 a share. That puts this quasi-ASX bank at an 8-month share price low, seeing as the company was last at these levels way back in February.

So what’s gone so wrong for Virgin Money today?

Virgin Money UK share price slumps on FY21 update

Well, this steep share price drop seems to be the result of a trading update the bank released yesterday evening after the market closed.

This update provided some guidance on what Virgin Money expects the company to deliver for its FY21 earnings results.

Virgin Money told investors that its statutory profit before tax is expected to be 417 million British pounds. Underlying profits before tax are expected to grow to 801 million pounds, up 546% from the 124 million pounds of the previous period. the company says this improvement is due to “strong financial momentum and improved macro outlook”.

Meanwhile, the bank’s income grew by 2% to 1.57 billion pounds, mainly helped by higher net interest income.

Virgin Money UK also announced a 1 pence per share dividend (final amount to be determined for the ASX shares) for investors, subject to the finalisation of FY21’s results, as well as shareholder approval.

Here’s some of what management had to say of these numbers:

Our strategy has continued to deliver improved financial momentum throughout the year, with support from an improved economic backdrop. Underlying profit is expected to be stronger at [801 million pounds, against 2020’s 124 million pounds] and the Group expects to return to statutory profit in FY21, delivering [417 million pounds] of PBT [profits before tax].

So why are Virgin Money UK shares falling so much today? Perhaps the most likely explanation is that investors were expecting more. Especially seeing that the United Kingdom relaxed most of their COVID-related restrictions back in June.

At the current Virgin Money UK share price, this bank has a market capitalisation of $5.11 billion.

The post Why is the Virgin Money UK (ASX:VUK) share price down 11% today? appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Clinuvel, Inghams, and Virgin Money UK shares are tumbling
• Which tech shares are dragging down the ASX 200 on Friday?
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Link receives takeover offer
• Expert highlights big threat to the Zip (ASX:Z1P) share price
• Get ready for a 10% share market correction: expert

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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a solid gain. At the time of writing, the benchmark index is up 0.6% to 7,471.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling:

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 4.5% to $118.71. Investors have been selling this payments company’s shares following a pullback in the Square share price overnight. The US payments giant’s shares were sold off after its third quarter result fell short of expectations. As Square is acquiring Afterpay in an all-scrip deal, the value of the takeover rises and falls with its share price.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is tumbling 10.5% to $36.36. This decline appears to have been driven by the release of a broker note out of Jefferies this morning. According to the note, following some strong gains in recent months, the broker has downgraded this biopharmaceutical company’s shares to a hold rating from buy. The Clinuvel share price is still up over 50% in 2021.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down a further 3.5% to $3.47. Investors have been selling this poultry producer’s shares since the release of its annual general meeting update on Thursday. That update revealed that Inghams’ performance is being impacted by sustained input cost pressures. In response, this morning Macquarie retained its neutral rating but cut its price target down to $3.70.

Virgin Money UK (ASX: VUK)

The Virgin Money share price has sunk 11.5% to $3.14. This UK based bank’s shares are being sold off today following the release of its full year update. Virgin Money advised that it expects to record an underlying profit before tax of 801 million pounds. This will be up 546% from the 124 million pounds recorded a year earlier. However, taking the shine off this was management revealing that it will incur 275 million pounds in restructuring costs over the next three years. This was approximately double what the market was expecting.

The post Why Afterpay, Clinuvel, Inghams, and Virgin Money UK shares are tumbling appeared first on The Motley Fool Australia.

More reading

• Why is the Virgin Money UK (ASX:VUK) share price down 11% today?
• Which tech shares are dragging down the ASX 200 on Friday?
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Link receives takeover offer
• Expert highlights big threat to the Zip (ASX:Z1P) share price
• Own ASX BNPL shares? These were the best performers during October

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 AFTERPAY T FPO. The Motley Fool Australia owns shares of 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 Pure Hydrogen Corporation CDI (ASX: PH2) share price is surging today following an update on its H2X Global transaction.

During mid-afternoon trade, the energy company’s shares are up 8.60% to a multi-year high of 50.5 cents.

What did Pure Hydrogen announce?

Investors are pushing Pure Hydrogen shares higher on news of the company’s positive release.

In a statement to the ASX, Pure Hydrogen advised that it has completed the transaction of H2X. This means that the company now holds a 24% interest in H2X Global with options to increase its ownership to 48%.

H2X is a hydrogen-powered vehicle manufacturer that is currently building Australia’s first hydrogen fuel cell cars. The company aims to market everything from all-electric utes, SUVs, vans and minibuses.

In addition to the update, H2X signed a memorandum of understanding (MoU) with the Economic Development Corporation (SEDC). The latter is an arm of the State Government of Sarawak, Malaysia.

Under the framework, H2X will establish a joint venture with SEDC Energy to produce long haul vehicles. However, in the near-term it will begin with assembly of utes to city buses, and also H2X hydrogen powered generators.

This follows the decision by the Sarawak government which first introduced hydrogen powered vehicles in 2019. The agreement could further lead to H2X supplying and assembling more vehicles including buses to meet the growing demand.

H2X CEO, Brendan Norman commented:

Sarawak was already well ahead of most States in the region and was well advanced establishing long term hydrogen production for both domestic and export markets.

We are been honoured to be selected to work with SEDC. It is likely that Sarawak will not only produce vehicles for its own use but will become a major supplier to other States in Malaysia and countries in the region.

Pure Hydrogen share price summary

Since the beginning of 2021, Pure Hydrogen shares have taken off, accelerating by more than 470%. When zooming out to the last 12 months, its shares have further accelerated to a gain of 515%.

Pure Hydrogen presides a market capitalisation of around $158.5 million, with more than 313.8 million shares on hand.

The post Why the Pure Hydrogen (ASX:PH2) share price is leaping to a multi-year high today appeared first on The Motley Fool Australia.

More reading

• Pure Hydrogen (ASX:PH2) share price jumps 5% on hydrogen vehicle plans
• Why are ASX hydrogen shares in the spotlight on Monday?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Both domestic and international travel is back on the cards for millions of Australians. So why is the Webjet Limited (ASX: WEB) share price struggling compared to that of its business-focused peer, Corporate Travel Management Ltd (ASX: CTD)?

Despite plenty of positive news regarding the Australian travel sector, the Webjet share price has fallen 4.3% over the past month. Shares in the online travel agent are currently trading for $6.33 apiece.

That’s a notably worse performance than that of the Corporate Travel share price. It has gained 0.5% in the same time frame to reach $24.60.

Though, both are underperforming against the broader market. The S&P/ASX 200 Index (ASX: XJO) has gained 3% over the last month.

Australia’s return to travel

On Monday, international borders reopened in Victoria and New South Wales after both states agreed to scrap quarantine for fully vaccinated arrivals. Additionally, residents eager to head overseas once more have been given the green light to do so.

And in more good news for wandering Aussies, travel between Victoria, New South Wales, and the ACT resumed today.

Though, the news hasn’t been enough to boost the Webjet share price back into the green.

What’s weighing on the Webjet share price?

There’s no news on which to pin the recent poor performance of the Webjet share price compared to that of Corporate Travel.

It could be due to the market believing business travel will restart quicker than leisure travel. Though, that doesn’t take into account the online travel agent’s business-to-business branch, WebBeds, which services the travel industry.

Additionally, Webjet has previously predicted it will be turning a profit at the same time as Corporate Travel.

At Webjet’s annual general meeting, the company’s managing director said the business is expected to be cash-flow positive in the first half of financial year 2022.

Whereas, Corporate Travel recently predicted it will return to profitability in the final quarter of the 2021 calendar year.

Unfortunately, there’s no clear answer as to why the Webjet share price is underperforming that of Corporate Travel.

But, at least Webjet’s stock isn’t alone in its struggles. Plenty of ASX travel shares are battling to get back into the green.

The Qantas Airways Limited (ASX: QAN) share price has fallen 2.1% over the last month, while that of Flight Centre Travel Group Ltd (ASX:  FLT) has slumped 17.6%.

The post Why is the Webjet (ASX:WEB) share price underperforming Corporate Travel lately? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Why has October been such a lousy month for the Webjet (ASX:WEB) share price?
• Brokers name 3 ASX shares to buy today
• Corporate Travel (ASX:CTD) share price gains as dividends flagged to return
• When was the worst ever day on the Webjet (ASX:WEB) share price chart?

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 owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. 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.

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