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The Essential Metals Ltd (ASX: ESS) share price is off to the races, up 8.11% in afternoon trade to 20 cents per share.

Below, we take a look at the asset sale announcement from the ASX lithium and gold explorer that looks to be driving investor interest.

What asset sale was reported?

The Essential Metals share price is rocketing after the company reported it will divest its 51% interest in the Mavis Lake Lithium Project, located in Canada.

Essential Metals’ Joint Venture partner International Lithium Corporation, is also divesting its interest, giving 100% of the project to Critical Resources Ltd (ASX: CRR) under an Option Agreement. The Critical Resources share price is up 12.90% at time of writing.

According to the release, the divestment will realise $1.6 million in cash and shares, along with $1.5 million in cash that’s linked to certain milestones for Essential.

Critical Resources will pay $175,000 for the right to acquire 100% of the Mavis Lake Lithium Project. If it elects to go through with the deal, it will pay $1.5 million in cash and 68 million in Critical Resources shares, valued at 2.2 cents per share. That’s significantly below the current 3.6 cents per share.

Essential Metals and International Lithium Corporation will share the proceeds equally.

Additionally, the Essential Metals share price could be getting a lift from the report that milestone payments totalling $3 million may be received subject to the definition of a lithium resource at the project.

Commenting on the divestment, Essential Metals’ managing director, Tim Spencer said:

The strong interest in lithium has allowed Essential and ILC to monetize an early-stage, non-core asset on favourable terms. Retaining upside exposure via a shareholding in Critical Resources means we will benefit from any success the Critical Resources team has in advancing Mavis Lake.

We will continue to focus our efforts on the company’s first-class West Australian lithium and gold projects.

Spencer said rapidly advancing the company’s Pioneer Dome Lithium Project in Western Australia’s Eastern Goldfields was the highest priority.

Essential Metals share price snapshot

The Essential Metals share price is up an impressive 150% year-to-date. By comparison the All Ordinaries Index (ASX: XAO) has gained 12% so far in 2021.

Over the past month, Essential Metals shares have lost 9%.

The post Why the Essential Metals (ASX:ESS) share price is surging 8% today appeared first on The Motley Fool Australia.

More reading

• Essential Metals (ASX:ESS) share price rockets 29% on lithium update
• Essential Metals (ASX:ESS) share price tumbles 20% on lithium update

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

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The iron ore price has managed to stabilise around the US$120 a tonne level, providing some much-needed reassurance for the beaten up BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Ltd (ASX: FMG).

Last Friday, iron ore spot prices pushed US$2.59 or 2.2% higher to US$119.52 a tonne, according to Fastmarkets. Its commentary said that prices corrected upwards after a sharp decline on Thursday amid a bearish outlook for iron ore demand.

Iron ore futures on China’s Dalian Commodity Exchange opened higher on Monday, with contracts for January 2022 delivery lifting 4.65% to around 710 yuan (US$111) a tonne.

Iron ore price headlines

Commodity boom at risk, Fitch says

The economic factors driving the post-pandemic commodity boom are now fading, says Fitch Ratings Inc.

Commodity prices have enjoyed favourable macro factors including the restart of economic activity, relaxation of COVID-19 restrictions, and a strong rebound in industrial activity. That’s in addition to plenty of government fiscal and monetary support, Fitch said.

Prices were further fuelled by a decline in commodity output, driven by COVID-19-related restrictions, extreme weather events, and shipping capacity constraints.

In a note to clients, Fitch warned these factors are now beginning to wane with China’s property market slowdown already resulting in a plunge in iron ore prices.

“China’s property market is cooling, the pace of global industrial production growth is slowing, the US dollar has started to strengthen and global US dollar credit flows are weakening,” said Robert Sierra, Director in Fitch Ratings’ Economics Team.

Fitch flagged near-term tailwinds such as tightening monetary conditions as the US Federal Reserve begins to taper its asset purchases as well as a firmer US dollar.

China aims to keep steel supply and price stable

The China Iron and Steel Association (CISA) told industry players to ensure supply while keeping prices stable, according to Mining.com.

Policymakers said that “it is necessary to pay close attention to recovering global steel production, adjusting production and improving industry governance”.

This follows China’s daily crude steel output in September sliding to an almost three-year low, according to Reuters calculations.

The post What’s the latest on the iron ore price? appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price lifts as iron ore prices rebound on Monday
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• The TerraCom (ASX:TER) share price is up 7% on Monday. Here’s why
• Here’s why the Poseidon (ASX:POS) share price is sliding today
• Here’s why the Creso Pharma (ASX:CPH) share price is leaping 9% today

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

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The Playside Studios Ltd (ASX: PLY) share price is surging higher today on the back of the company’s quarterly activities and cash flow report, which included an update on its recent acquisition.

Over the first quarter of financial year 2022, Playside received a record $4.04 million of revenue and signed an agreement to launch its maiden PC game.

At the time of writing, the Playside share price is 67.5 cents, 16.38% higher than its previous close.

However, earlier this morning, the company’s stock reached a new 52-week high of 70 cents, representing a daily gain of 20.6%.

Let’s take a closer look at today’s news from the video game developer.

The quarter just been for Playside

The Playside share price is soaring after it announced its Original IP business had its best quarter since the company’s inception.

Over the 3 months ended 30 September, its Original IP business saw $2.7 million of revenue. That represents a 22% quarter-on-quarter increase and 227% more revenue than it reported for the same quarter of the last financial year.

The business also signed a strategic partnership with London-listed, 5-time BAFTA award winning publisher, Team17. Together, the companies will publish Playside’s PC title, Age of Darkness: Final Stand.  

Under the partnership, Team17 will provide Playside with $2.42 million of recoupable payments to fund the title’s development in exchange for publishing rights. The companies will share the title’s future profits.

The company’s work for hire business also saw an increase in revenue over the quarter just been. It brought in $1.33 million, a 46% quarter-on-quarter increase and 25% more than the prior corresponding period’s revenue.

The business’ key achievement was the extension and expansion of its agreement with Facebook Inc‘s (NASDAQ: FB) Facebook Technologies.

Playside’s latest work-for-hire development agreement with Facebook Technologies saw the contract’s value boosted 90% higher than that of its previous agreement.

The contract was extended for another 6 months. In that time, PlaySide will deliver between 10 and 16 mini games.

Additionally, the titles launched by Playside in financial year 2021 and during the first quarter of financial year 2022 are all performing well.

The company also has 5 titles expected to launch this financial year, including a new title for the Dumb Ways to Die franchise.

Dumb Ways to Die update

The Playside share price is likely also being boosted by news of its first acquisition. The company acquired the Dumb Ways to Die franchise in September, paying for it on 1 October.

The franchise was purchased from Metro Trains Melbourne. Metro Trains Melbourne birthed Dumb Ways to Die after a 2012 campaign to promote rail safety went viral.

The franchise includes 6 ‘freemium’ mobile titles, merchandise, trademarks, social media accounts, and other digital assets. Freemium titles are free to access but offer in-game purchases.

According to Playside, the $2.25 million purchase price represents 1.5 times the franchise’s financial year 2021 revenue.

Since the acquisition, Playside has published several videos to the franchise’s TikTok account. The videos have amassed more than 7.8 million views and brought more than 330,000 new followers, growing the account’s following by 57% and boosting the games’ revenues.

Playside is currently in the pre-production phase for the development of a new title for the franchise. The company plans to release the title in the fourth quarter of financial year 2022.

Playside share price snapshot

Since Playside’s initial public offering (IPO), which occurred in December 2020, the company’s share price has gained 114%.

It is also currently 237% higher than the company’s prospectus offer price of 20 cents.

The post Why is the Playside Studios (ASX:PLY) share price rocketing 16% today? appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price lifts as iron ore prices rebound on Monday
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• The TerraCom (ASX:TER) share price is up 7% on Monday. Here’s why
• Here’s why the Poseidon (ASX:POS) share price is sliding today
• Here’s why the Creso Pharma (ASX:CPH) share price is leaping 9% today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook. The Motley Fool Australia has recommended Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has had a promising start to this week’s trading so far on Monday morning. At the time of writing, the ASX 200 is up a healthy 0.67% at 7,465 points. The BHP Group Ltd (ASX: BHP) share price has joined in this optimism this morning. BHP shares are currently up by 1.3% at $38.14 a share. So what’s pushing up BHP shares this Monday? Could the iron ore price be responsible?

Currently the ASX 200’s second-largest constituent by market capitalisation, BHP is the largest mining company in the country and one of the largest in the world. However, BHP shares are still primarily influenced by the market fluctuations of its most important commodity: iron ore.

What’s going on with the iron ore price?

BHP’s recent run to a new record high was indeed driven by an unprecedented boom in iron ore pricing. It was only a few months ago that the iron ore price was above US$200 a tonne, a historically sky-high level. This, together with record dividend payments, helped push BHP shares from the $43 a share level we saw at the start of the year to an all-time high of $54.55 by August. That’s a rise of more than 26%.

However, more recently, iron ore has been acting as a handbrake on BHP shares. Since reaching those new highs in early August, BHP shares have plummeted. The company is now around 40% off of those all-time highs as it stands today. Indeed, at the current BHP share price, the company is now down 11.4% in 2021 so far.

So that brings us back to the current iron ore price. What’s been going on with this most important commodity?

Well, iron ore is still well below the levels we saw only a few months ago. Saying that, it’s still had a pretty decent time over the past week or so. As my Fool colleague James covered this morning, benchmark iron ore prices rose 2.2% to US$119.52 a tonne on Friday night. Perhaps with this rise, investors are hopeful the worst of the iron ore price falls are behind BHP. At least for now.

Could BHP shares be a buy today?

As the Fool covered last week, broker Morgans is bullish on BHP shares at their current level. Morgans rated BHP as an add, with a 12-month share price target of $46.05 a share for the miner. That implies a potential future upside of close to 22% on current levels. Morgans reckons BHP has been oversold by investors, and is eyeing a “double-digit dividend yield” from BHP shares over the current financial year (FY2022).

At BHP’s current share price, this iron ore giant has a market capitalisation of $111.08 billion and a dividend yield of 10.62%.

The post BHP (ASX:BHP) share price lifts as iron ore prices rebound on Monday appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• Why is the BHP (ASX:BHP) share price slumping today?
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• 5 things to watch on the ASX 200 on Friday

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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up 0.65% to 7,464.8 points.

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

Telstra announces US$1.6bn Digicel Pacific acquisition

The Telstra Corporation Ltd (ASX: TLS) share price is pushing higher today after announcing a major acquisition. According to the release, Telstra has teamed up with the Australian Government to acquire the South Pacific-based telco, Digicel Pacific. The two parties have agreed to pay US$1.6 billion up front and up to an additional US$250 million. This latter is subject to Digicel Pacific’s business performance over the next three years. Telstra expects the deal to be earnings per share accretive.

Mineral Resources shares jump

The Mineral Resources Limited (ASX: MIN) share price is racing higher today after announcing the restart of its 40% owned Wodgina Lithium Mine in the Pilbara region of Western Australia. Wodgina, which has been on care and maintenance since November 2019, will be restarted to produce spodumene concentrate during the third quarter of 2022. The company will initially focus on restarting one of Wodgina’s three 250,000tpa processing lines.

Pilbara Minerals shares halted

The Pilbara Minerals Ltd (ASX: PLS) share price is paused on Monday after requesting a trading halt. The lithium miner requested the halt as it prepares an announcement on a strategic transaction concerning a downstream joint venture. Not further details were provided. However, just over two years ago, Pilbara Minerals announced binding terms with South Korean conglomerate, POSCO, for the formation of an incorporated joint venture in South Korea. The joint venture intends to build and operate a 40ktpa LCE primary lithium hydroxide downstream chemical processing facility.

Best and worst ASX 200 performers

The best performer on the ASX 200 has been the Mineral Resources share price with a 9% gain. This follows news that it is restarting the Wodgina Lithium Mine. The worst performer has been the Perpetual Limited (ASX: PPT) share price with a 6% decline. This may be due to profit taking after some strong gains last week.

The post ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps appeared first on The Motley Fool Australia.

More reading

• Telstra (ASX:TLS) share price higher following Digicel Pacific acquisition news
• Why the Mineral Resources (ASX:MIN) share price is charging higher on Monday
• Why is the Pilbara Minerals (ASX:PLS) share price halted?
• Telstra (ASX:TLS) share price on watch after announcing US$1.6bn Digicel acquisition
• 5 things to watch on the ASX 200 on Monday

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 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 TerraCom Ltd (ASX: TER) share price is roaring higher during late morning trade on Monday. This comes after the resource company provided investors with a coal sales update from its wholly-owned Blair Athol mine.

At the time of writing, TerraCom shares are swapping hands for 22.5 cents, up 7.14%. Just last week, its shares reached a new 52-week high of 25.5 cents before some profit-taking occurred.

TerraCom hits sales targets

The TerraCom share price is rocketing today with investors clearly happy about the way the company is performing.

According to its announcement, TerraCom is continuing to deliver a robust performance at its Blair Athol coal mine in Australia.

All cargoes containing coal from the company’s Blair Athol mine have now been fully sold until the end of January 2022.

The primary markets TerraCom services are the Japanese and South Korean energy markets and the Indian sponge iron market. The latter is made by directly reducing iron ore through the use of thermal coal in an electric arc furnace.

Coal sold from Blair Athol for the December 2021 quarter came to 575,000 tonnes. This represents an annualised run rate of 2.3 million tonnes per annum.

TerraCom is forecasting revenue of $224 per tonne in the December quarter. Should this be achieved, the operating cash margin is anticipated to be approximately $134 per tonne. Based on the 575,000 tonnes sold, the company will have operating earnings before interest, tax, depreciation and amortisation (EBITDA) of $77 million.

About the TerraCom share price

TerraCom is a resource company with a large portfolio of assets in Queensland as well as South Africa. The business is currently undergoing a growth strategy to become a mid-tier player in the coal industry.

The TerraCom share price has continued its upwards trajectory, reflecting positive investor sentiment in the company. Over the past 12 months, its shares have risen by more than 66% with year-to-date up 32%.

On valuation grounds, TerraCom has a market capitalisation of around $169.5 million and roughly 753.6 million shares on issue.

The post The TerraCom (ASX:TER) share price is up 7% on Monday. Here’s why appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price lifts as iron ore prices rebound on Monday
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• Here’s why the Poseidon (ASX:POS) share price is sliding today
• Here’s why the Creso Pharma (ASX:CPH) share price is leaping 9% today
• What’s going on with the 4DS Memory (ASX:4DS) share price?

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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The Poseidon Nickel Ltd (ASX: POS) share price is dropping in early trade today after the company released a key announcement on its Black Swan site.

At the time of writing, shares in the nickel mining company are changing hands at 10 cents each which is around a 5% loss from the open.

That’s a significant drop this morning after Poseidon shares started the day in the green before the jitteriness from investors crept in.

Here’s what we know from Poseidon’s camp today.

Poseidon Nickel share price slumps after exploration update

Poseidon outlined several takeaways regarding exploration and drilling progress at its Black Swan site.

It revealed two underground rigs are testing the “potential down plunge Silver Swan extensions and infilling existing inferred resources” at its Silver Swan resource drilling program.

The existing Silver Swan resources contain a total of “16kt Ni (Nickel) averaging 9.5% Ni spread over three resources”.

These are the Tundra-Mute, Peking Duck, and Fledgling-Canard resources that are each covered in detail throughout Poseidon’s update.

In addition, after Poseidon’s downhole EM program completed an up plunge of its Golden Swan site, it explained there was “no significant anomalism detected”.

Yet, it maintains that “prospectivity remains in untested areas of the Southern Terrace”.

In respect to the Golden Swan resource, there’s a delay in the finalisation of the maiden resource due to “unforeseen circumstances”.

Investors can expect results of the maiden resource at this site to be released in the last week of October, according to the company’s update.

Lastly, regarding its “Fill the Mill Strategy”, work is continuing on its Bankable Feasibility Study on a 1.1Mtpa processing plant.

The ‘base feed’ for the study is “a combination of Black Swan open pit ore and Silver Swan Tailings” to be complemented with “high grade ore from both Golden Swan and Silver Swan”.

Notably, Poseidon needs to first record a resource at its Golden Swan site to include in the base feed for the study.

What did management say?

Regarding the Fill the Mill Strategy, Poseidon Nickel managing director and CEO Peter Harold said:

The Fill the Mill Strategy for the Black Swan restart requires good confidence in our high-grade resources at both Silver Swan and Golden Swan so the mining studies can maximise the mining inventory and generate accurate mining schedules to assist in de-risking the restart.

Also touching on mineralisation finds at the project, Harold added:

New DHEM platforms have been established down plunge of the Silver Swan mineralisation and these are awaiting a geophysical crew to undertake the survey. The results of the survey could provide targets for extensional drilling. In the meantime, we have identified a good zone of mineralisation below the Black Swan open pit from previous RC drilling, undertaken in 2019, which could present an opportunity to increase the size of the pit and extend the proposed open pit mine-life. We can drill this zone from underground and will redeploy one of the underground rigs to undertake that drilling.

Poseidon Nickel share price snapshot

The Poseidon Nickel share price has delivered an outsized return of 54% since January 1, extending its gains in the last 12 months to 19%.

That’s roughly in line with the S&P/ASX 200 Index (ASX: XJO)’s return of about 21% in that time.

The post Here’s why the Poseidon (ASX:POS) share price is sliding today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Poseidon (ASX:POS) share price is up 5% on Wednesday

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.

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The Creso Pharma Ltd (ASX: CPH) share price is surging today, up 9% in morning trade.

Below we take a look at the latest acquisition news that appears to be stoking interest in the ASX cannabis share.

What acquisition was reported?

The Creso Pharma share price is leaping higher after the company reported it has entered into an asset purchase agreement for the purchase of brand and product portfolio assets owned by ImpACTIVE.

Canadian life sciences company, ImpACTIVE, is focused on CBD-based products offering anti-inflammatory relief to professional and amateur athletes.

Creso said it will acquire the ImpACTIVE Assets through a newly incorporated Creso subsidiary, Creso ImpACTIVE Ltd. Creso will pay C$200,000 (AU$217,000) in Creso Shares, valued at 11 Australian cents per share. That’s below the current Creso Pharma share price of 12 cents.

The acquisition is intended to increase Creso’s CBD offerings in the North American markets. With the ImpACTIVE products containing less than 0.3% THC (the active ingredient in cannabis that gets people “high”), the company said this will “significantly” reduce global regulatory issues.

Commenting on the deal, Creso’s executive VP of North America, Will Lay said:

This acquisition marks the first phase of Creso Pharma’s efforts to enter into the US and I am excited to be working with ImpACTIVE to integrate them into the group. We have instituted aggressive sales targets, which is expected to lead to an increase in Creso Pharma’s top line and increased its market share across North America.

Non-executive chairman, Adam Blumenthal added:

We expect that ImpACTIVE’s range of innovative products and brand ambassadors which will provide Creso Pharma with direct access to an emerging subsection of the global CBD market. The group also has established relationships with major US retail groups, which is expected to provide leverage for Creso Pharma as it seeks to grow sales of its own hemp based CBD products.

Creso Pharma share price snapshot

The Creso Pharma share price has been a stellar performer over the past 12 months, up a whopping 283%. That compares to a gain of 22% posted by the All Ordinaries Index (ASX: XAO) over the last full year.

Over the past month, Creso Pharma shares have gained 5%.

The post Here’s why the Creso Pharma (ASX:CPH) share price is leaping 9% today appeared first on The Motley Fool Australia.

More reading

• Beaten up ASX cannabis shares showing signs of life
• Creso Pharma (ASX:CPH) share price struggles despite study update
• Creso Pharma (ASX:CPH) share price jumps on new deal

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

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The 4DS Memory Ltd (ASX: 4DS) share price is still frozen in time following the company’s extension of voluntary suspension. This will take the number of days the company will have been halted to 24 by 1 November 2021.

Currently, shares in the semiconductor developer are motionless at 13 cents a pop. It has been in this position since 8 October when the company originally entered its halt, pending the release of a technical update.

Waiting game continues

4DS Memory shareholders are anxiously awaiting the release of an announcement that has been a long time coming.

Initially, the trading halt had turned into a voluntary suspension with an 18 October deadline. However, last week, this suspension was further extended to 25 October after the company failed to provide an announcement during the originally allotted timeframe.

Well, 25 October is here and, unfortunately for nervous shareholders, a further suspension extension has come with it. As a result, the 4DS Memory share price will stay frozen for another painstaking week.

Many 4DS investors have shared their speculations on forums offering an array of differing views. However, with no official word from the company, there are no clear insights into what the pending announcement relates to.

The last technical details that investors were given weren’t so positive.

On 17 August 2021, 4DS announced details involving its third non-platform wafers and its second platform lot wafers. It highlighted that the second platform wafers had suffered fabrication issues although the update said issues were corrected with the expectation of no induced delays.

What’s upcoming for 4DS Memory share price?

At this stage, investors will be holding their collective breath for 1 November. It’s unknown whether the company will issue an announcement or whether another extension will ensue. However, that aside, the next notable event for the 4DS Memory share price aside will likely be its annual general meeting (AGM).

The company’s AGM is slated for Monday 29 November 2021.

The post What’s going on with the 4DS Memory (ASX:4DS) share price? appeared first on The Motley Fool Australia.

More reading

• 4DS Memory (ASX:4DS) share price lifts on patent update

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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The Macquarie Group Ltd (ASX: MQG) share price has been on an upward trajectory for the past few weeks.

Shares in the investment banking giant started the week’s trading at $200 apiece, which is an approximate 5% climb this past week and another record high for the company.

That’s well ahead of the S&P/ASX 200 Financials Index (XFJ) which has nudged around 2% higher in the same time.

As a result, Macquarie claims its spot on the mantlepiece as one of only 3 ASX shares jumping the gulf into the $200/share club.

What tailwinds are behind the Macquarie share price?

Over the past month, the Macquarie share price has been marching towards the ceiling, having gained around 11.5% in that time.

Macquarie stepped into the month of October by releasing a presentation to provide investors with upcoming expectations and guidance for the coming periods.

The presentation detailed the bank’s earnings outlook for the first half of FY22, where it anticipates a decrease in earnings from H2 FY21, but still a substantial increase from the same time last year.

Macquarie reckons it will recognise a jump in operating profit this quarter, underscored by the divestment of several former business segments.

Moreover, the company is firm on its positioning in the renewables space, to which it has recently pivoted into.

In fact, Macquarie has taken a serious pivot into renewables, with $2 billion in current funding on its project books and another $45 million at the helm ready to disperse into the green energy field.

Plus with evolving dynamics in energy production and consumption, the bank feels it is well-positioned to capitalise on these trends, in addition to pouncing on other opportunities in the merger & acquisitions (M&A) space in its asset management and infrastructure arms.

Can Macquarie keep on delivering?

Analysts at leading broker Jeffries are adamant the bank can certainly keep on delivering to shareholders and feels its colleagues in the field may be downplaying Macquarie’s earnings too much this quarter.

The broker reckons that the consensus view of $1.8 billion for Macquarie’s earnings in Q1 FY22 could perhaps be a little too downbeat.

It sees the figure as low on the backdrop of a hot-running natural gas and gas market, strengths in its financing business, as well as a spree of acquisitions completed on the ASX this year – all positives to Macquarie, suggests Jeffries.

As such, the broker upgraded its modelling to forecast $2.08 billion in earnings for 1H FY22 and then $3.66 billion for the entire FY22.

It also reckons that the total addressable market size in the renewables sector for the bank is “far greater than its present ($71 billion) market capitalisation” – a bullish signal, according to the broker.

It also consequently raised its price target on the Macquarie share price by 9% to $230, up from $211 at the beginning of the month.

At the current market price, this implies a 16% upside potential for investors, according to Jeffries.

Meanwhile, fellow brokers Morgan Stanley and JP Morgan are also bullish on Macquarie shares.

The former has a $240 price target on the company, whereas JP Morgan reckons investors are in for a period of earnings growth, forecasting around 15% return on equity from FY22–24 for the company.

Bringing it all together, it appears each of these brokers believes that the Macquarie share price has further legs to grow and deliver shareholder returns.

Macquarie shares have climbed 44% this year after rallying 46% in the last 12 months, setting a slue of record highs on a consistent basis in that time.

The post Macquarie (ASX:MQG) share price breaks $200 mark for first time ever, sets new record high appeared first on The Motley Fool Australia.

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• Aurizon (ASX:AZJ) share price rises amid transformative $2.35bn acquisition
• Another day, another all-time high for the Macquarie (ASX:MQG) share price
• Can the Macquarie (ASX:MQG) share price hit $240 by Christmas?

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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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