Tag: Motley Fool

Over the month just gone, the S&P/ASX 200 Index (ASX: XJO) didn’t exactly have the best time. October saw the ASX 200 go backwards by around 0.1%. Certainly not the worst October the ASX 200 has ever seen (1987 anyone?) but still not exactly inspiring stuff. But on the topic of inspiration, not all ASX shares had such a lethargic month. The ASX tech share space had a far more lucrative October.

The S&P/ASX All Technology Index (ASX: XTX) ended up seeing gains of around 2% for the month. So which ASX tech shares were the best performers on the ASX boards over October? That’s what we’ll be checking out today.

5 of the best performing ASX tech shares over October

Nearmap Ltd (ASX: NEA)

This aerial mapping company certainly did a lot better than the ASX 200 over the month just gone. Nearmap shares started the month at $1.90 apiece, but ended up finishing at $2.21 last Friday. That puts Nearmap’s October performance at a healthy 16.3%. We don’t exactly know what sparked this run, but (as we covered last week), some positive broker sentiment may have helped.

Dicker Data Ltd (ASX: DDR)

Data storage share Dicker Data also managed a strong month over October. The Dicker Data share price began the month at $12.61. By the end of the month, it was asking $14.99, up a robust 18.9%. In this case, it looks as though Dicker’s well-received quarterly earnings report that the company delivered early last week has assisted mightily with this performance. Perhaps understandably, the 16.1% increase in year-on-year revenues this ASX tech share reported seems to have given investors a confidence boost.

Appen Ltd (ASX: APX)

Former WAAAX darling Appen managed to turn its ship around over October, surely much to the delight of its recently-suffering shareholders. Appen had been caught up in a nasty share price slide for most of the year (it’s still down more than 56% year to date). But it still had an October to remember. Appen shares rose from $8.96 at the start of the month to finish up at $10.75 last Friday, a rise of roughly 20%. My Fool colleague Mitchell covered this shift in fortune just yesterday, but it seems to be largely down to this ASX tech share’s Quadrant acquisition, as well as positive broker sentiment here.

Nuix Ltd (ASX: NXL)

Another beaten-down ASX tech share that had a far better October than most is Nuix. This company went from $2.52 a share at the end of September to finish up at $3.08. That’s a rise of 22.22%. Again, the rise of Nuix over October is hard to pin down. But the appointment of Jonathan Rubinsztein as the company’s new CEO seems to have at least partly assisted here.

Life360 Inc (ASX: 360)

Our final ASX tech share to check out today is the software company Life360. This company started the month out at $8.98 a share, but was commanding a price of $10.99 by the end of the month, a rise of 22.4%. Like Dicker Data, a quarterly earnings update seems to have been the major catalyst behind this October jump. Life360 reported year-on-year revenue growth of 45% last week, which prompted the Life360 share price to hit a record high. No wonder its October performance was one of the ASX’s best.

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

More reading

• The Appen (ASX:APX) share price has jumped 23% in the last month
• 3 fantastic ASX shares that could be buys in November
• The Nearmap (ASX:NEA) share price is up 20% in 3 weeks. What’s happening?
• 3 fantastic ASX growth shares named as buys
• Top brokers name 3 ASX shares to buy today

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 shares of and has recommended Appen Ltd, Dicker Data Limited, Life360, Inc., and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd, Dicker Data Limited, and Nearmap 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/3nV6KAq

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.5% to 7,331.5 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

Goodman Group (ASX: GMG)

The Goodman share price is up 6% to $23.64. Investors have been buying this global integrated property company’s shares after it upgraded its earnings guidance following a strong first quarter. Goodman now expects its operating earnings per share to grow 15% in FY 2022. This compares to its previous guidance for 10% growth year on year.

Praemium Ltd (ASX: PPS)

The Praemium share price is up 15.5% to $1.44. This morning Netwealth Group Ltd (ASX: NWL) revealed that it has made a non-binding indicative proposal to merge with Praemium. Netwealth offered one Netwealth share for every 11.96 Praemium shares plus a cash consideration of $50 million. However, the Praemium Board has rejected the offer, believing it undervalues the investment platform provider.

Step One Clothing Ord Shs (ASX: STP)

The Step One share price is up a further 3.5% to $2.85. This means the online underwear retailer’s shares are now up 86% from Monday’s IPO listing price of $1.53. Step One raised $81.3 million via its IPO. These funds will be used to support the company’s growth strategies. This includes growing Step One’s existing customer base in Australia and the UK, and investing in establishing a presence in the US.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is up 5% to $6.96. Investors have been buying this biopharmaceutical company’s shares after it received approval for its prostate imaging product, Illuccix, from the Australian Therapeutic Goods Administration (TGA). Illuccix is a positron emission tomography agent used to diagnose men with prostate cancer.

The post Why Goodman, Praemium, Step One, and Telix shares are charging higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks
• Here’s why the Telix (ASX:TLX) share price is charging 5% higher today
• Netwealth (ASX:NWL) share price drops on Praemium merger proposal
• Goodman (ASX:GMG) share price storms 5% higher on earnings guidance upgrade
• 3 fantastic ASX shares that could be buys in November

Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth and Praemium Limited. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended Praemium 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/3nNyN4C

Innovation and disruption are, in many ways, the bedrock of our economy.

Certainly of our economic growth.

Yes, the old faithfuls keep doing their thing, and we need them, but it’s the driver for the ‘new’ that pushes us forward.

Indeed, consider the grocery chains.

There was a time ‘self service’ wasn’t a thing. You went to a store and told the clerk what you wanted. He (it was usually a bloke) got your goods, bagged them up, charged you for them, and off you went.

That clerk wouldn’t recognise the supermarket of 1980, let alone 2021.

And in that 40 years, we’ve seen barcodes and scanners speed up service, checkout conveyors do the same, and trading hours increase to facilitate flexibility.

Those same supermarkets now include fresh fruit and vegetables, fresh meat and often fresh bread and seafood.

We can now order online and either organise delivery or have the bags put straight in our boots.

Product ranges have expanded, freight deliveries to those stores are now more regular, and there are fewer holes on shelves because stock levels are more easily managed.

And that’s just the humble supermarket.

We all know about the revolutions in computers, mobile phones (apparently you can still use them for calls) and video streaming. (My son actually complains if he misses the ads, because he sees so few. It’s a far cry from my childhood watching one of three television channels and having to get up from my chair to change them!).

Also, take solar panels. The huge strides in automotive efficiency, even before you include hybrids and EVs. Social networks (for good and ill). New ways to pay for things (ditto).

But not just in the big ways.

In small ways, too. The advances in technology that make computer processors a little cheaper each time. That allow for communications to be faster and clearer. It is no small thing to think about all of the interactions over the last two or three decades that let many of us work from home, almost unimpeded, during COVID.

Had the pandemic hit even five years ago, the video conferencing software, internet speeds and the like would have been far more challenging.

And the last five years’ worth of innovation compound on top of the previous five, 10, 20 and 50 years before that.

Today’s internet is the descendant of the first telegraph line to cross the country. Today’s EV is the natural evolution of a long line of motorisation that goes back a century.

It’s true that progress brings its challenges, risks and unintended consequences… but it has given us a society that is far better off than in decades and centuries past. It is truly better to be relatively poorly off, today, than to have been royalty 200 years ago.

(Which is not an excuse nor a cover to pretend we can’t improve things for all of us. We truly can — and should — but that’s a conversation for another day.)

And, as an investor, it’s important to remember that our economy (and the stock market) is not a static, unchanging beast.

As a correspondent to our Motley Fool Money podcast wrote the other day “Companies are like sharks. They’re either moving forward or dying”.

Which doesn’t mean you (necessarily) have to invest on the ‘bleeding edge’ of technology. Truth be told, I’m no tech expert or futurist. I don’t claim to be and — thankfully — I don’t need to be.

But I do try to, as ice hockey superstar Wayne Gretzky famously said, skate no to where the puck is, but “… where the puck is going”.

It’s obvious, but also not implemented as often as it should be, in investing.

A lot of time and effort is spent, for example, in trying to work out if and when AMP Ltd (ASX: AMP) will finally turn around its two-decade long tale of share price woe.

On the flipside, you’ve had plenty of businesses that continued to grow, some strongly, some moderately, over that time.

In hindsight it’s easy, even trite, to make the point that the latter group was the one to invest in, and AMP was best avoided.

But it’s an example of a larger trend.

It’s almost too simple, yet rarely followed. And I think it’s intuitive, if you take the time to stop and think it through: I think investing in growth is far more likely to beat expecting a turnaround.

Not all the time, or without exception.

But overall. On average.

Not every company.

Price still matters.

As does an understanding of the competitive dynamics of a given industry.

Woolworths Group Ltd (ASX: WOW) has been working on building its ecommerce business for years. Decades, even.

So when the need arose, it was reasonably able to scale it, relatively quickly, rather than trying to circle the proverbial wagons against the threat.

It understands the need to keep moving forward.

Our task, then, as investors isn’t even to play ‘amateur futurist’ and make outlandish bets on which niche technology might possibly win the future.

(Sure, you might predict the iPhone. Or, you know, the laser disc!)

Instead, I think we can make our jobs easier but also improve our potential returns, by simply looking for businesses that are looking to, and preparing themselves for, the future.

And those who aren’t just making promises, but actually growing as they do.

The successes of the past are fine, as it goes, but if they don’t have a realistic plan to win from here, they might be best left on the shelf.

If you can find the right businesses (and pay a decent price), I think you’re probably giving yourself the best chance of long term success.

(Next time, I’ll share a couple of companies that we think fit that bill. Stay tuned…)

Fool on!

The post You can’t drive using the rear vision mirror appeared first on The Motley Fool Australia.

More reading

• Judo Bank (ASX:JDO) share price up another 5% on second day of trading
• Why is the Australian Potash (ASX:APC) share price crashing 20% today?
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks
• It’s been a great 2021 so far for the CBA (ASX:CBA) share price
• MGC Pharmaceuticals (ASX:MXC) share price climbs on study approval

Motley Fool contributor Scott Phillips 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/3bxwyg3

Judo Capital Holdings Ltd (ASX: JDO) is off to a great start.

On its second day of trading on the ASX, the Judo Bank share price is up 5.53% to $2.385 per share.

That’s up a total of 7.4% since yesterday’s opening bell.

The All Ordinaries Index (ASX: XAO), by comparison, is up a slender 0.28% since Monday’s open.

The Judo Bank share price is also now up 13.57% from its initial public offering (IPO) offer price of $2.10 per share. That IPO saw the bank raise $657 million from a range of institutional and retail investors.

(More details on the first day of trading here.)

Why all the fuss about the Judo Bank share price?

You’ve likely seen the bank’s name in the financial headlines recently. Even before reading this article.

That’s because new banks don’t list on the ASX every day. Or even every decade. In fact, Judo Bank is the first bank to list on the ASX in 30 years.

Unlike Australia’s big 4 banks, the newly listed company will focus its efforts on small and medium-sized enterprises (SMEs).

Why?

According to Judo Bank’s CEO, Joseph Healy:

Australian SMEs have been unable to secure the lending they need and the service they deserve to support and grow their businesses. They have been forced into a model that required them to contact their bank via a call centre; use their homes as collateral for business loans; and contend with a ‘computer says no’ approach to lending.

It’s early days yet.

But judging by the Judo Bank share price moves over the first day and a half of listed trading, the bank may indeed be targeting some unmet borrowing demand.

The post Judo Bank (ASX:JDO) share price up another 5% on second day of trading appeared first on The Motley Fool Australia.

More reading

• Judo Bank (ASX:JDO) hits the ASX, here’s how it differs from the big four

The Motley Fool writer Bernd Struben 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/3mI8vBD

The Australian Potash Ltd (ASX: APC) share price has come out of a trading halt today following a successful placement.

During morning trade, the mineral exploration company’s shares are swapping hands for 9.2 cents, down 20%. It’s worth noting its shares have plummeted 30% since 22 October.

What’s driving the Australian Potash shares lower?

A possible catalyst for today’s fall in the Australian Potash share price could be concern about an impending share dilution.

In its release, Australian Potash advised it had successfully received commitments to raise $12 million through a two-tranche placement.

The capital raise gathered supported by a number of investors to help accelerate the company’s Lake Wells Sulphate of Potash (SOP) Project.

In total, 150 million shares will be issued at an offer price of 8 cents apiece. This represents a 30.4% discount to the last closing price of 11.5 cents on 28 October (before going into a trading halt).

The first tranche will fall under the company’s listing rule 7.1, allowing around 97.49 million shares to be issued freely.

The second tranche, about 52.5 million shares, will be subject to shareholder approval at an annual general meeting (AGM) on 15 December.

Proceeds of the placement will be allocated in developing and de-risking the Lake Wells SOP Project over the coming months. The company is aiming to achieve a final investment decision (FID) for the end of the first quarter in 2022. The funds will be used for:

• Borefield drilling and test pumping;
• Earthworks and site-based expenditure; and
• Working capital and general purposes.

Furthermore, Australian Potash will offer a share purchase plan (SPP) to retail investors to raise an additional $2 million. The SPP will be offered at the same price as the placement and is also subject to shareholder approval at the AGM. The closing date of the SPP is 13 December 2021.

What did the head of Australian Potash say?

Australian Potash managing director and CEO Matt Shackleton commented:

…Our progressive de-risking strategy, when applied to the Mineral Resource, is to continue developing bores, pump-testing those bores and then reconciling recorded flow rates back to the hydro-model, which is effectively our mine development plan. At this point, our schedule indicates we will have approximately 30%-50% of the production borefield by volume developed through Q1 2022.

Corporately we remain focused on finalising credit approval processes for the balance of the syndicated, development debt facility.

About the Australian Potash share price

It’s been a tough ride for Australian Potash shareholders, with the company’s shares falling more than 30% year-to-date. Looking at a longer time frame, the Australian Potash share price is down around 29% since this time last year.

Based on today’s price, Australian Potash presides a market capitalisation of around $74.7 million.

The post Why is the Australian Potash (ASX:APC) share price crashing 20% today? appeared first on The Motley Fool Australia.

More reading

• You can’t drive using the rear vision mirror
• Judo Bank (ASX:JDO) share price up another 5% on second day of trading
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks
• It’s been a great 2021 so far for the CBA (ASX:CBA) share price
• MGC Pharmaceuticals (ASX:MXC) share price climbs on study approval

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/3BvWm6V

At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to give back most of yesterday’s gains. The benchmark index is currently down 0.4% to 7,343.1 points.

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

Netwealth wants to merge with Praemium

The Netwealth Group Ltd (ASX: NWL) share price is trading lower today after making a non-binding indicative proposal to merge with smaller rival Praemium Ltd (ASX: PPS). According to the release, the company has offered one Netwealth share for every 11.96 Praemium shares plus a cash consideration of $50 million. However, the Praemium Board has rejected the offer, believing it undervalues the investment platform provider.

IAG shares sink

The Insurance Australia Group Ltd (ASX: IAG) share price is sinking after it provided an update on net natural perils claim costs for FY 2022. This follows severe storm and hail activity experienced over the course of October. The insurance giant has increased its expectation for FY 2022 net natural perils claim costs to $1,045 million. This compares to the previous assumption of $765 million. As a result, it has downgraded its insurance margin guidance range from 13.5% – 15.5% to 10% – 12%.

Westpac shares continue to slide

The Westpac Banking Corp (ASX: WBC) share price is falling again on Tuesday after brokers responded poorly to its full year results. One of those brokers was Goldman Sachs, which downgraded the bank’s shares to a neutral rating with a $25.60 price target. This was due largely to its weaker net interest margin trajectory. Elsewhere, Morgan Stanley downgraded Westpac’s shares to an equal-weight rating with a $24.80 price target.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Goodman Group (ASX: GMG) share price with a 6% gain. This morning the global integrated property company upgraded its earnings guidance following a strong first quarter. The worst performer has been the IAG share price with a 6.5% decline after its update.

The post ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks appeared first on The Motley Fool Australia.

More reading

• It’s been a great 2021 so far for the CBA (ASX:CBA) share price
• Why is the Brickworks (ASX:BKW) share price falling today?
• IAG (ASX:IAG) share price sinks 6% on guidance downgrade
• Netwealth (ASX:NWL) share price drops on Praemium merger proposal
• Goodman (ASX:GMG) share price storms 5% higher on earnings guidance upgrade

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth and Praemium Limited. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited and Netwealth. The Motley Fool Australia has recommended Praemium 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/31gC44F

The Commonwealth Bank of Australia (ASX: CBA) share price has gone up quite a bit in 2021 so far.

Since the start of the year, the big four ASX bank has seen its share price go 26% higher.

That compares favourably to the S&P/ASX 200 Index (ASX: XJO) which has only risen by 10% from the start of the year.

CBA share price recovers

Just before the COVID-19 crash near the start of 2020, CBA shares were just above $90. It wasn’t until May 2021 that the bank finally surpassed that previous valuation level.

Investors often like to value a business on where they believe a business’ profit or growth is going. Brokers and analysts had been expecting that the FY21 result would show a substantial improvement from the FY20 result. This turned out to be the case.

The headline net cash net profit after tax (NPAT) rose by 19.8% to $8.65 billion. Statutory net profit grew 19.7% to $8.84 billion. In summary, CBA said that net profit increased because of improved economic conditions and outlook resulting in a lower loan impairment expense and a strong operational performance.

That loan impairment expense was $554 million, which was a 78% reduction on FY20. The bank noted that it has maintained a strong provision coverage ratio of 1.63%, reflecting the economic uncertainty from the continuing impacts of COVID-19.

However, profitability of its loan book edged lower with the net interest margin (NIM) dropping by 4 basis points because of higher liquid assets and the ongoing impact of a low interest rate environment, partly offset by management actions, lower wholesale funding costs and a “favourable” funding mix.

The bank continues to grow its core businesses at a relatively fast rate. In FY21, business lending increased $11 billion, more than three times faster than the system. Home lending and household deposits both increased by $31 billion, which was 1.2 times the system.

Balance sheet, dividends and the share buyback

Another factor that can impact the CBA share price is how much capital it has and what it does with it.

The big four ASX bank said that at the end of FY21, its common equity tier 1 (CET1) capital ratio was 13.1%, an increase of 150 basis points on FY20. This was above APRA’s ‘unquestionably strong’ benchmark of 10.5%.

Commonwealth Bank said that its strong capital position and the progress on executing on its strategy means that it is well placed to support customers and manage ongoing uncertainties, while also returning a portion of excess capital to shareholders. It decided to announce a $6 billion off-market share buy-back.

In terms of the dividend, the big bank decided to declare a fully franked dividend of $3.50 per share. That represented a 17% increase on FY20.

Is the CBA share price a buy?

One of the latest brokers to have their say on CBA was Morgan Stanley, which currently has an ‘underweight’/sell rating on the bank with a price target of $90. That suggests the broker believes the CBA share price could fall more than 10% over the next year.

One of the reasons for the broker’s subdued thoughts on CBA relates to APRA changes which could limit loan growth

Based on the broker’s estimates, CBA shares are valued at 21x FY22’s estimated earnings with a projected grossed-up dividend yield of 5.4%.

The post It’s been a great 2021 so far for the CBA (ASX:CBA) share price appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks
• Why is the Brickworks (ASX:BKW) share price falling today?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn

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

The MGC Pharmaceuticals Ltd (ASX: MXC) share price is shooting higher and is currently up around 2% at 4.9 cents. Earlier in the day it was up to 5.1 cents, a gain of around 6% on the previous closing price.

MGC shares have been in the green all day after the biopharmaceuticals and phytomedicine company announced a key update regarding its drug candidate CimetrA.

Here are the details.

What did MGC Pharmaceuticals announce?

MGC said the Israeli Ministry of Health had approved a dosing study of CimetrA, used in the treatment of Covid-19. Today’s announcement appears to have impressed investors, pushing the MGC Pharmaceuticals share price higher.

For reference, CimetrA is formulated from naturally derived anti-inflammatories found in the plants Curcumin and Boswellia (also known as Indian frankincense).

A dosing study is a necessary step in a drug’s approval process. It is used to determine the most effective amount of active ingredient required to achieve a desired response, without causing any adverse side effects.

The aim is to identify a label’s “therapeutic dose” alongside a wider safety profile, in preparation for registration and sale to the public.

As such, MGC’s latest study will “further examine the anti-inflammatory and immune-modulatory effects of CimetrA”.

It will recruit 240 patients across a number of jurisdictions, including Israel, South Africa, the US, and Russia. After which, results will be submitted to the health authorities of each country.

Interpretation of the results will then be used to determine the “most effective dosage of CimetrA for treating symptoms of Covid-19”. This includes a rare but serious complication known as a ‘cytokine storm’.

Cytokines are markers in the body that are critical in regulating the immune system. Covid-19 can cause them to be released in overwhelming abundance — a cytokine storm — which is detrimental to the body’s tissues.

Previous studies MGC has undertaken support CimetrA’s use as an immune system modulator that is effective in preventing and treating cytokine storms.

This appears significant, as cytokine storms are believed to be the main cause of death in Covid-19 patients.

What is management saying?

Speaking on the announcement possibly driving the MGC Pharmaceuticals share price, co-founder and managing director Roby Zomer said:

This latest dosage study is the latest step as we move closer to being in a position to apply for marketing authorisation for CimetrA in territories across the globe.

We believe that CimetrA will prove to be a vitally important drug in the treatment of COVID-19 going forward, and look forward to sharing the results of the study in due course, along with further steps towards providing COVID-19 patients and governments across the world a cost-effective treatment to fast-track patient recovery and minimise the massive cost burden of long-term hospitalisation.

MGC Pharmaceuticals share price snapshot

The MGC Pharmaceuticals share price has been an outsized winner this year to date, having climbed almost 100%.

It has also gained 122% over the past 12 months. That’s well ahead of the benchmark S&P/ASX 200 index (ASX: XJO)’s return of around 25% in that time.

The post MGC Pharmaceuticals (ASX:MXC) share price climbs on study approval appeared first on The Motley Fool Australia.

More reading

• Why the Bubs (ASX:BUB) share price has rocketed 51% in a month
• Why is the Brickworks (ASX:BKW) share price falling today?
• Here’s why the Telix (ASX:TLX) share price is charging 5% higher today
• IAG (ASX:IAG) share price sinks 6% on guidance downgrade
• National Tyre (ASX:NTD) share price surges 8% on acquisition news

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/3w8PBXj

The last few weeks have been a welcome change for the long-suffering shareholders of Bubs Australia Ltd (ASX: BUB). Since this time last month, the Bubs share price has risen a remarkable 51%.

Though, it is worth highlighting that the goat milk infant formula company’s shares are still down by approximately 50% from their June 2020 high.

Why is the Bubs share price up 51% in a month?

The catalyst for the rampant rise by the Bubs share price was the release of its first quarter update last month.

After many disappointing quarters, the company’s performance improved materially during the three months ended 30 September.

For example, Bubs reported a 96% year on year increase (and 45% quarter on quarter increase) in revenue to $18.5 million during the first quarter.

Management revealed that a key driver of this growth was its China business. Sales across the Chinese daigou, cross border ecommerce, and general trade channels increased by 156% over the prior corresponding period to $9.8 million. This accounts for over half of its revenue for the period.

In light of this strong form, investors appear optimistic that the worst is now behind the company and it will return to consistent growth again.

What else?

Also giving the Bubs share price a boost was the announcement of yet another product launch.

While Bubs’ previous launches of a vitamin range and dairy-based infant formula have yet to move the needle, this didn’t stop investors from getting excited about the launch of a range of cow’s milk powder products for the whole family.

The new range, Bubs Family Nutrition, will reportedly give Bubs access to a global US$15.7 billion market for whole milk powder. Though, it is worth remembering that Bubs is still only a very small player in a competitive market dominated by multinationals.

Are its shares good value?

The team at Citi are reasonably upbeat on the Bubs share price but see limited upside after its strong run.

The broker currently has a buy (high risk) rating and 58 cents price target on its shares. Based on the current Bubs share price of 55.5 cents, this implies potential upside of 4.5%.

The post Why the Bubs (ASX:BUB) share price has rocketed 51% in a month appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares that could be buys in November 2021
• Bubs (ASX:BUB) share price higher on new product launch
• The Bubs (ASX:BUB) share price is up 40% in 6 days. Here’s why
• A2 Milk (ASX:A2M) share price ticks higher as UBS increases holding
• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again

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 recommended BUBS AUST FPO. 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/3ERrxf5

The S&P/ASX 200 Index (ASX: XJO) is having a bit of a strange start to today’s trading session this Tuesday. At the time of writing, the ASX 200 is currently down 0.36% at 7,344 points after erasing an initial bump into positive territory earlier this morning. But one ASX 200 share is moving far more decisively today. That would be the Brickworks Ltd (ASX: BKW) share price.

Brickworks shares are currently trading at $23.05 each, down a nasty 4.12% from yesterday’s closing price. So why is Brickworks getting so severely sold off this morning, especially compared to what the ASX 200 is doing today?

The pitfalls of trading ex-dividend…

Well, it’s not as bad as you might fear. We can put this seemingly disappointing performance for Brickworks today down to the company trading ex-dividend for its upcoming final shareholder payment for the year this morning. When a company announces a dividend, it also includes the ex-dividend date which determines which shareholders receive the dividend in question.

Shareholders who held Brickworks shares yesterday or prior will receive this 40 cents per share payout while new shareholders from today will not. This means the value of this dividend effectively left the Brickworks share price today. It’s one of the best reasons to have one of your shares fall in value.

So how much is this dividend worth?

Back on 23 September, Brickworks delivered its full-year earnings results for the 2021 financial year. Back then, the company announced that its final dividend for FY21 would come in at 40 cents per share, fully franked. That pips last year’s final dividend of 39 cents per share by 1 cent (or 2.6%) and brings its total dividends paid in 2021 to 61 cents per share, a 3.4% increase over 2020’s total dividends.

Brickworks is an ASX 200 company with one of the strongest dividend streaks on the market. It hasn’t cut its annual dividend for more than 40 years and has increased it every year since 2009.

Shareholders who held Brickworks shares before today will receive this 40 cents per share dividend later this month on 24 November.

Brickworks share price snapshot

As it stands at today’s share price, Brickworks has a dividend yield of 2.59%, fully franked. At this pricing, Brickworks is up more than 20% year to date in 2021 so far, as well as being up 33.3% over the past 12 months, and 81.6% over the past 5 years.

Saying that, the company has pulled back from the recent all-time highs we were seeing back in September. Late in that month, Brickworks hit a new all-time high of $26.32 a share. The company is now around 10% off of that high after today’s sizeable drop.

At the current Brickworks share price, this ASX 200 share has a market capitalisation of $3.57 billion and a price-to-earnings (P/E) ratio of 14.8. 

The post Why is the Brickworks (ASX:BKW) share price falling today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn
• Can the Macquarie (ASX:MQG) share price break new highs over $200?
• These were the worst performing ASX 200 shares in October

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 shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks. 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/31oow7p