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The IGO Ltd (ASX: IGO) share price gained on Thursday despite no price-sensitive news being released by the company.

As of Thursday’s close, the IGO share price is $8.87, 1.95% higher than it was at its previous close.

That’s a better performance than was seen from the broader market on Thursday. The S&P/ASX 200 Index (ASX: XJO) gained 0.54% over the course of the day, while the All Ordinaries Index (ASX: XAO) lifted 0.64%.

The S&P/ASX 200 Resources Index (ASX: XJR) also outperformed the broader market, gaining 1.34% on Thursday.

While IGO itself was quiet today, Boadicea Resources Ltd (ASX: BOA) released a non-price-sensitive update on IGO’s Fraser Range tenements.

Let’s take a look at the latest news from the exploration and mining company.

IGO’s work at the Fraser Range tenements

The IGO share price ended today in the green amid an announcement detailing the company’s Fraser Range activities.

IGO’s subsidiary, IGO Newsearch, previously entered into a joint venture with Boadicea Resources. Under the joint venture, IGO has 5 years of exclusive access and exploration rights for 9 of Boadicea Resources’ Fraser Range tenements in Western Australia.

Today, Boadicea Resources outlined IGO’s progress at the tenements over the 3 months ended 30 September.

According to Boadicea Resources, IGO has found potential nickel and copper accumulation at one target. It has also received positive assay results from the Orion target.

Additionally, Boadicea Resources outlined the work IGO plans to do at the tenements during the fourth quarter of 2021.

IGO is expecting to continue current heritage negotiations over most of the northern targets. It will also recover data from 89 moving loop electromagnetic surveys and conduct multiple air-core drilling programs.

IGO share price snapshot

Today’s gains are just the latest for the IGO share price, which has been performing well this year.

It is currently 32% higher than it was at the start of 2021. It has also gained 103% since this time last year.

The post IGO (ASX:IGO) share price lifts after exploration update appeared first on The Motley Fool Australia.

More reading

• The Pilbara Minerals (ASX:PLS) share price surges on resource upgrade
• Top brokers name 3 ASX shares to sell today
• IGO (ASX:IGO) share price lifts amid Western Areas rumours

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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It has been a bumper day for ASX lithium shares, with many players surging double digits and breaking out to fresh all-time highs.

On the larger end of town, Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) rallied 5.1% and 1.9% respectively, but both around 15% away from September record highs.

Australia’s next lithium producer Core Lithium Ltd (ASX: CXO) jumped 20% to fresh all-time highs of 57 cents.

Liontown Resources Limited (ASX: LTR), which recently demerged its non-lithium assets in Minerals 260 Ltd (ASX: MI6), surged 13.2% to near all-time highs of $1.585.

Firefinch Ltd (ASX: FFX), which has partnered with Chinese lithium giant Jiangxi Ganfeng Lithium to progress its Goulamina Project, rallied 5.74% to 65.4 cents.

Other notable ASX lithium shares, all of which are explorers include Argosy Minerals Limited (ASX: AGY), Lake Resources N.L. (ASX: LKE) and Avz Minerals Ltd (ASX: AVZ), closed Thursday’s session up a respective 13.1%, 2.7% and 3.3%.

What’s driving ASX lithium shares?

Lithium is expected to play a vital role in the global transition towards net zero emissions.

Lithium prices have already rallied beyond 2018 highs, with Benchmark Minerals Intelligence reporting that Chinese battery-grade lithium carbonate surged 26.5% in the final two weeks of September to 160,000 yuan (US$24,800) a tonne.

This has in turn brought many ASX lithium shares from multi-year lows in late 2020 to all-time highs in recent weeks.

This might only be the tip of the iceberg.

The International Monetary Fund (IMF) released its world economic outlook report this month, citing that:

In the IEA’s Net Zero by 2050 emissions scenario,total consumption of lithium and cobalt rises by a factor of more than six, driven by clean energy demand.

From a pricing perspective, the report said:

Results show that prices would reach historical peaks for an unprecedented, sustained period under the Net Zero by 2050 emissions scenario. The prices of cobalt, lithium, and nickel would rise several hundred percent from 2020 levels and could delay the energy transition.

This could make lithium a very lucrative business and bode well for both established players and prospective explorers.

The post Why ASX lithium shares are booming on Thursday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Which ASX 300 shares are the major movers on Thursday?
• These 3 ASX 200 shares are topping the volume charts this Thursday
• Up another 16%, the Core Lithium (ASX:CXO) share price is surging this week. Here’s why
• Here are the 3 heaviest traded ASX 200 shares this Wednesday so far

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 Zoono Group Ltd (ASX: ZNO) share price took flight in trading today. This came after the company released its quarterly activities report.

At the end of Thursday’s session, shares in the antimicrobial solutions company were 26.55% above their previous close, hitting 50 cents. However, Zoono reached an intraday high of 56.5 cents apiece earlier in the afternoon.

Let’s take a look at what had investors excited today.

Improving margins and continued expansion

Investors were bidding the Zoono share price higher with ferocity on Thursday. More than 2.5 million shares were traded, which is above average for the sanitiser company.

According to the release, Zoono achieved NZ$7.5 million in invoiced sales during the first quarter. However, this consisted of NZ$4.7 million of delivered sales, with the other NZ$2.8 million yet to be shipped.

Despite the company’s sales falling from its COVID-19 peaks, it continues to push the expansion of its markets and customers.

Importantly, Zoono is focusing on regions where it is uneconomical for other foreign companies to compete. This has assisted in lifting the company’s gross profit margin from 59% to 71%, which can only be a positive for the Zoono share price.

Additionally, it is aiming to obtain a direct presence in all major European Union markets in the next 6 to 9 months. Furthermore, following a successful trial with Keolis Group in France, Zoono’s products will be used across 27 districts where transport systems operate. On top of this, several additional major new customers in France are expected to be signed this quarter.

Positively, Zoono suggested it is unlikely there will be a need to raise capital in the foreseeable future. At the end of the quarter, the company held NZ$10.1 million in cash equivalents.

Zoono share price snapshot

Taking a look at the 1-year chart, we can see the Zoono share price has been in decline since July 2020. The company received a massive boost to its valuation amid the need for additional sanitisation due to COVID-19.

However, sales have dwindled in sync with the increase in vaccinations around the world. In turn, the Zoono share price is down 67% over the past year.

Finally, the company trades on a price-to-earnings (P/E) ratio of 15.4 times based on its 12-month trailing earnings.

The post Zoono (ASX:ZNO) share price rockets 26% on quarterly update appeared first on The Motley Fool Australia.

More reading

• Why did the Woodside (ASX:WPL) share price slide today?
• Why ASX 200 tech shares have outperformed today
• Own BHP (ASX:BHP) shares? Here’s the miner’s latest push to reduce emissions
• Why did the Novonix (ASX:NVX) share price leap 6% on Thursday?
• Why is the Pushpay (ASX:PPH) share price struggling lately?

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 S&P/ASX 200 Index (ASX: XJO) managed to finally have a day in the green today. The ASX 200 closed this Thursday at 7,311.7 points, up a healthy 0.54%. But one ASX 200 share didn’t get the invite. That would be the Woodside Petroleum Limited (ASX: WPL) share price.

Woodside shares had a clanger today. This ASX energy share closed today’s trading session at $24.99 a share, down 1.23%. That puts Woodside in the upper-middle of its 52-week range ($17.17 to $27.60).

So why did the Woodside share price go backwards when the broader market powered forwards today?

The first thing we should look at for an oil driller like Woodside is the price of crude oil itself. Since Woodside’s business model revolves around drilling ‘black gold’ out of the ground, any changes to the underlying price of crude oil directly influence this company’s profitability.

Why did the Woodside share price underperform the ASX 200?

Lo and behold, oil markets have been a little shaky over the past day or so. As my Fool colleague James heralded this morning, West Texas Intermediate (WTI) crude oil slid overnight, falling 0.2% to US$80.50 a barrel. Brent crude also fell by a similar amount to US$83.24.

While this slide might not look like anything too significant, especially seeing as it still leaves oil at a historically high level, it could be causing concern on the demand side of the market. As we reported this morning, “demand concerns appear to be the reason behind the softening oil prices”.

This thesis gels with what other ASX oil companies did today. Woodside wasn’t the only share in the energy space to go backwards. Woodside’s fellow drillers Santos Ltd (ASX: STO) and Oil Search Ltd (ASX: OSH) also lost steam. Santos shares ended up losing 1.34% to $7.34 today, while Oil Search fell 0.66% to $4.54 a share.

So where to now for the Woodside share price?

As my Fool colleague Tristan covered just yesterday, brokers at Macquarie Group Ltd (ASX: MQG) reckon there is a little more oil in the barrel for Woodside shareholders.

Macquarie currently rates Woodside shares with a 12-month price target of $27.25. That implies a potential 12-month upside of roughly 9% on today’s levels. The broker is optimistic Woodside will be able to pay out healthy dividends going forward and likes the company’s current valuation.

At the current Woodside share price, this company has a market capitalisation of $24.34 billion and a dividend yield of 2.25%.

The post Why did the Woodside (ASX:WPL) share price slide today? appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 tech shares have outperformed today
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• Rio Tinto (ASX:RIO) share price climbs amid news of latest green push
• These 3 ASX 200 shares are topping the volume charts this Thursday
• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again

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 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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Tech shares on the S&P/ASX 200 Index (Index:^AXJO) have made a big comeback on Thursday, leaving investors wondering if the beaten down sector has reached a turning point.

The ASX 200 tech share index surged by over 4% when the broader share benchmark “only” managed a gain of 0.5%.

Some of the best known tech names led the gains. The WiseTech Global Ltd (ASX: WTC) share price jumped over 7%, Appen Ltd (ASX: APX) share price added 6.2% and Xero Limited (ASX: XRO) share price rallied more than 5%.

ASX 200 tech shares are following the leader higher

ASX 200 tech shares have found favour today after the Nasdaq Composite (INDEXNASDAQ: .IXIC) delivered a strong showing last night.

The US tech composite gained 0.7% when the more general S&P 500 (INDEXSP: .INX) could only eke out a 0.3% advance.

The outperformance of our tech shares stand in sharp contrast to how they traded over the past year. Several of the one-time darlings are nursing big losses since January.

What has been eating ASX 200 tech shares?

This is largely because of US interest rate expectations. The Federal Reserve is poised to wind back its quantitative easing (QE) program. That’s also feeding expectations that it could start lifting interest rates sooner than expected.

The extra liquidity from QE and record low rates have benefitted risk assets. Any talk about these tailwinds being wound back will hit growth shares harder.

ASX 200 tech shares have essentially personified growth equity on our market. And it doesn’t help that our central bank is starting to take away the punch bowl from the party.

Australian rates could rise sooner than you’d think

The Reserve Bank of Australia is winding back QE, although it stated repeatedly that rates won’t rise till 2024.

But if the Fed raises rates soon, the RBA may be forced to sing a different tune. Such is the globalised world we live in where relative rates can be more important than actual rates.

Is the rally a dead cat bounce?

Given that the rate rise risk is not abating (in fact, some would argue it’s rising as the world can’t seem to shake inflation fears), is the recovery in ASX 200 tech shares a dead cat bounce?

Some would certainly argue this convincing point. But supporters of tech shares can take heart that there could be a more enduring reason for the rebound in the sector than just playing follow the NASDAQ leader.

If the risk of persistent inflation were to solidify further, the shares that tend to do best as those with pricing power.

A stronger tailwind for some ASX 200 tech shares

This means companies with a strong market position. They can increase prices without hurting demand for their products or services.

In many respects, some ASX 200 tech shares fit this bill. This is either because they have created such a “sticky” service where it would be costly or too inconvenient to swap to a rival. Or it may be because their offering is so innovative that nothing really comes close.

Mind you, not all of these shares have pricing power. And it isn’t a given that this trait would be enough to keep such shares rallying in the face of rate hikes.

The post Why ASX 200 tech shares have outperformed today appeared first on The Motley Fool Australia.

More reading

• Why did the Woodside (ASX:WPL) share price slide today?
• Here are the top 10 ASX shares today
• Rio Tinto (ASX:RIO) share price climbs amid news of latest green push
• Could the Appen (ASX:APX) share price jump to $17 by Christmas?
• These 3 ASX 200 shares are topping the volume charts this Thursday

Motley Fool contributor Brendon Lau 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, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended Appen Ltd, WiseTech Global, and Xero. 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 BHP Group Ltd (ASX: BHP) share price closed higher on Thursday. This comes after the company revealed its latest efforts to reduce greenhouse gas emissions.

At the final bell, BHP shares were changing hands for $37.80, up 0.56%.

BHP on verge on striking a deal

BHP today advised it expects to enter into renewable energy supply arrangements with Iberdrola in the near future.

Founded in 1992, Iberdrola is a Spanish multinational electric utility company that is spearheading the development of green hydrogen. The energy business is aiming to meet demand for electrification and decarbonisation in sectors such as industry and heavy transport.

Under the deal, half of the energy needs for South Australia’s Olympic Dam will come from renewable sources by 2025. This will see the Olympic Dam reduce its emission position to zero for 50 per cent of its electricity consumption by 2025.

The energy will be supplied by Iberdrola, coming from the Port Augusta Renewable Energy Park in South Australia. Due to be completed in July 2022, this will become Australia’s largest solar-wind hybrid plant.

BHP noted it would be the primary customer of the new renewable facility once constructed. In turn, this is expected to help it achieve its medium-term target to reduce operational greenhouse gas emissions by 30% from FY20 levels by FY30.

BHP Olympic Dam asset president Jennifer Purdie commented:

These arrangements will support an exciting new renewable energy project which will contribute to South Australia’s renewable energy ambitions.

Olympic Dam’s copper has an important role to play to support global decarbonisation and the energy transition as an essential product in electric vehicles and renewable infrastructure. Reducing emissions from our operations will further enhance our position as a sustainable copper producer.

It’s worth noting that BHP entered into renewable energy agreements for its operations in Western Australia in 2021, Queensland in 2020, and Chile in 2019.

BHP share price summary

Over the past 12 months, BHP shares have moved in circles to post a small gain of 5%. However, the latest iron ore rout has led the company’s shares to fall by 10% this year.

BHP has a market capitalisation of roughly $112.6 million, with almost 3 billion shares on its books.

The post Own BHP (ASX:BHP) shares? Here’s the miner’s latest push to reduce emissions appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why did the BHP (ASX:BHP) share price have such a lousy FY22 first quarter?
• Could the Woodside (ASX:WPL) share price hit $27.50 by the end of 2021?
• BHP (ASX:BHP) share price rises amid coal asset sale rumours
• ASX 200 (ASX:XJO) midday update: Westpac’s $1.3bn earnings hit, Ansell sinks

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 Novonix Ltd (ASX: NVX) share price surged higher today despite no news having been released by the company.

In fact, the last time the market heard price-sensitive news from Novonix was way back in August. But the silence seemingly hasn’t deterred the market from driving the company’s stock’s value higher.

As of Thursday’s close, the Novonix share price is $5.39, 5.89% higher than it was at Wednesday’s close.

Let’s take a look at what might have driven the Novonix share price today.

Quick refresher

Novonix is a battery and technology company that operates in two segments.

First, Novonix’s battery testing solutions develops battery testing equipment. It’s focused on using Ultra-High Precision Coulometry to help create reliable lifetime evaluation of lithium-ion cells.

Meanwhile, the company’s PUREgraphite business creates environmentally friendly graphite anode material for lithium-ion batteries.

What drove the Novonix on the ASX today?

There was no obvious reason for the rise in the Novonix share price today. However, it wasn’t alone in its gains. Many ASX battery material stocks were in the green today.

The share price of Core Lithium Ltd (ASX: CXO), which is working to supply lithium to the battery and electric vehicle industry, surged 17% today.

Lithium-sulphur battery company, Li-S Energy Ltd (ASX: LIS), was also up 2.8%. Finally, lithium carbonate supplier and boron producer, Orocobre Limited (ASX: ORE) gained 2.2%.

Perhaps battery-focused shares were spurred on by the potential for Australia to set a net zero emissions target ahead of next month’s COP 26 UN Global Climate Conference.

According to reporting by SBS, the Liberals and Nationals are at odds over setting a net zero emissions target for 2050, with Prime Minister Scott Morrison pushing to get a plan in place before the Glasgow summit.

Such discussions could be bolstering interest in companies working in the climate-friendly battery sector.

Not to mention, Thursday was a good day on the broader market. The S&P/ASX 200 Index (ASX: XJO) was up 0.7% and the All Ordinaries Index (ASX: XAO) gained 0.8%.

Novonix share price snapshot

Today’s gains are only the latest for the Novonix share price, which has been performing brilliantly on the ASX lately.

It has gained 334% since the start of 2021. It is also 376% higher than it was this time last year.

The post Why did the Novonix (ASX:NVX) share price leap 6% on Thursday? appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are the biggest winners and losers on Thursday?
• Which shares are the biggest winners and losers on the ASX 300 today?
• Bullish on lithium and batteries? 4 ASX shares this fund manager loves
• Which ASX 300 shares are on the move for the start of the week?
• Why is the Novonix (ASX:NVX) share price plunging 12% today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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Since 17 September 2021, the Pushpay Holdings Ltd (ASX: PPH) share price has fallen by around 6%.

The electronic donation ASX share has been going through a lot of change since the onset of COVID-19.

Investors may not know what to make of the business in the current environment.

Pushpay itself said it’s continuing to expect strong revenue growth in FY22 (and beyond) as continues to execute on its strategy to increase its market share, innovate its products, carry out acquisitions and expanding into the Catholic market.

What is Pushpay expecting in FY22?

In FY22, Pushpay said it was expecting to achieve earnings before interest, tax, depreciation, amortisation, foreign exchange and impairments (EBITDAFI) of between US$64 million to US$69 million. However, it said that uncertainties and impacts surrounding COVID-19 and the broader US economic environment remain.

But the above numbers include the impact of its plans to invest in the Catholic segment.

In the long-term, Pushpay is targeting to increase the appeal of its products to new customers and increase the revenue per customer through continued innovation, and acquisitions.

Pushpay’s Catholic initiative is its first step in investing to grow its customer base outside of its existing core base.

Management have set a goal of acquiring more than 25% of the Catholic church management system and donor management system market over the next five years.

The ASX share pointed out that the Catholic church is closely associated with many education providers and non-profit organisations, which can present further opportunities within the US and other international jurisdictions. Acquisitions also provide opportunities to expand the customer base and to deliver new products that can be sold into the existing customer base more rapidly than could be achieved organically.

Excluding the impact of the investment into the Catholic initiative, Pushpay said it was expecting to achieve EBITDAFI for FY22 from its business of between US$66 million to US$71 million.

What else has made headlines?

The Pushpay share price may also be impacted by the acquisition of Resi Media.

Resi Media is a US-based market-leading streaming solutions provider, servicing more than 70% of the Outreach 100 largest churches in the US.

Pushpay said this was a strategically compelling acquisition of a market-leading, faith-focused streaming platform to broaden its core product offering.

Management also said that this adds a further stream of high growth and high margin software as a service (SaaS) revenue. It also brings a large total addressable market across all church segments, non-profit organisations and other verticals.

Pushpay thinks this has material synergy opportunities through product cross-selling and integration with Pushpay’s sales and marketing engine.

In FY21, Resi Media had $12.9 million of annual recurring revenue (ARR), with 101% revenue growth. It had a total of 3,374 customers, with 314% customer growth compared to FY20. The net revenue retention rate was more than 100%.

The post Why is the Pushpay (ASX:PPH) share price struggling lately? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. 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 HUB24 Ltd (ASX: HUB) share price was in exceptionally strong form on Thursday.

The investment platform provider’s shares were up as much as 11% to a record high of $31.83 at one stage.

The HUB24 share price ultimately ended the day with a gain of almost 9% to $31.25.

Why did the HUB24 share price rocket higher?

Investors were bidding the HUB24 share price higher today after the release of a very strong first quarter update.

According to the release, the company achieved record first quarter funds under administration (FUA) net inflows of $3 billion. This brought its total FUA to $63.2 billion, which is an increase of 229.1% over the prior corresponding period.

This was driven by a 139% jump in platform FUA to $45.4 billion and Portfolio, Administration and Reporting Services (PARS) FUA of $17.8 billion. The latter business was acquired from Ord Minnett in December 2020 and therefore was not part of the company in the prior corresponding period.

Netwealth also impresses

It wasn’t just HUB24 that delivered strong growth in the first quarter. The Netwealth Group Ltd (ASX: NWL) share price also surged higher today following the release of its own quarterly update. This appears to have given investor sentiment in the industry a real boost today.

According to its release, Netwealth reported record net inflows of $4 billion for the quarter. This took Netwealth’s FUA to $52 billion, which represents an increase of 52.7% over the prior corresponding period and 10.2% quarter on quarter.

Is the HUB24 share price a buy?

Earlier this week the team at Credit Suisse put an outperform rating and $34.00 price target on the company’s shares.

Based on the current HUB24 share price of $31.25, this still implies potential upside of almost 9% for investors.

And it is worth noting that the broker has yet to respond to this and could amend its price target higher (or lower) in the coming days once it has run the rule over this update.

This could make it worth keeping a close eye on HUB24 shares.

The post Why the HUB24 (ASX:HUB) share price jumped 11% to a record high today appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, HUB24, Netwealth & Perseus shares are storming higher
• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again
• HUB24 (ASX:HUB) share price on watch after record Q1 performance
• These were the worst performing ASX 200 shares last week

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 Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended Hub24 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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The WAM Capital Ltd (ASX: WAM) share price has enjoyed a pretty fabulous day of trading on the ASX boards this Thursday.

At first glance, WAM’s gain of 0.42% to $2.39 a share doesn’t seem that noteworthy. It didn’t even do as well as the S&P/ASX 200 Index (ASX: XJO), which closed up 0.54% to 7,311 points.

But when you consider that $2.39 is WAM Capital’s 52-week high, you can understand why some WAM Capital shareholders might be in a celebratory mood today.

It comes after Wilson Asset Management (the WAM in WAM Capital) released its latest investment update. Wilson releases an update for all of its listed investment companies (LICs), including WAM Capital, every month.

And today, the update for September dropped at around midday.

What did Wilson say about WAM?

To kick things off, Wilson reported that WAM Capital’s net tangible assets (NTA) per share stood at $1.98. That’s up around half a percentage point from the $1.97 per share that this LIC reported last month for August.

Since they are what’s known as closed-ended investment vehicles, an LIC can either trade at a premium or a discount to its underlying NTA. Usually, LICs with a strong performance history or high dividend yields command a premium. Conversely, LICs that don’t enjoy as much investor confidence can trade at a discount.

We can probably put WAM Capital in the former camp. That’s because even though WAM Capital only had $1.98 in assets per share as of 30 September, it was trading with a share price of $2.37.

At today’s price of $2.38, this LIC now has a premium to its underlying NTA of around 20%.

WAM also told investors that WAM Capital managed to outperform the All Ordinaries Total Accumulation Index (ASX: XAOA) over September. It also announced that it has added to its profit reserve (from which it pays out dividends).

This LIC now has 28.2 cents per share in its reserve. That’s up from 27.9 cents last month. Since WAM Capital’s annual dividend is sitting at 15.5 cents per share, this indicates WAM has enough gas in the tank to fund it for at least another 12-18 months.

Some of the companies this LIC is currently invested in include Pact Group Holdings Ltd (ASX: PGH), Virgin Money UK (ASX: VUK), Aristocrat Leisure Limited (ASX: ALL), and Carsales.com Ltd (ASX: CAR).

At the current WAM Capital share price, this LIC has a market capitalisation of $2.09 billion. It also has a dividend yield of 6.5%.

The post WAM Capital (ASX:WAM) share price hits 52-week high amid investment update appeared first on The Motley Fool Australia.

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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 recommended carsales.com 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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