Tag: Motley Fool

The Eclipse Metals Ltd (ASX: EPM) share price has been an exceptionally strong performer over the last month.

Since this time in August, the rare earths explorer’s shares have rocketed a whopping 120% higher.

This means the Eclipse Metals share price is now up 340% since the start of the year.

Why is the Eclipse Metals share price rocketing higher?

Investors have been bidding the Eclipse Metals share price higher in recent weeks following the release of a positive announcement in the middle of August.

That announcement revealed that the ongoing examination of historical diamond drill cores from an area near to the Ivittuut Greenland Project has been very promising.

The company advised that it has identified the potential for untapped rare earth, high grade quartz, cryolite, siderite, sphalerite and carbonate material.

What is the Ivittuut Greenland Project?

The Ivittuut Greenland Project is located in southwestern Greenland. It has a power station and fuel supplies to servicing it and local traffic to support mineral exploration. About 5.5km to the northeast of Ivittuut, the twin settlements of Kangilinnguit and Gronnedal, respectively provide a heliport and an active wharf with infrastructure.

The Gronnedal-lka carbonatite complex, where the drill cores have come from, is less than 10km from Ivittuut and only 5km from the port of Gronnedal.

It is one of the 12 larger Gardar alkaline intrusions in Greenland and is recognised as one of the prime rare earth elements (REE) targets in the country.

The release explains that the geophysical analysis over Gronnedal-Ika carbonatite/dyke geological units have been confirmed to be far more extensive than previously known, which is further encouragement for potential REE and sulphide mineralisation. REE occurs throughout the carbonatite complex, especially in late-stage veins where it occurs as various strontium REE carbonate minerals.

All in all, while there is still a lot of work to be done, the company appears to believe it has the potential to be a key supplier of REE in the future. This goes some way to explaining the strong gains by the Eclipse Metals share price over the last month.

The post Here’s why the Eclipse Metals (ASX:EPM) share price is up 120% in a month appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• This ASX 200 share has notched up 5 record highs this month
• Warren Buffett’s indicator is flashing red. Are we in for a share market crash?
• Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher
• Why the Okapi Resources (ASX:OKR) share price is rocketing 28% today

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

from The Motley Fool Australia https://ift.tt/2YvtAFr

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Macquarie, its analysts have retained their outperform rating but cut their price target on this mining giant’s shares to $25.00. Macquarie remains positive on Fortescue and believes it can still generate 10% free cash flow yields in the medium term. This is due to its belief that a reduction in capital expenditure will offset weaker iron ore prices. As a result, it continues to forecast very generous dividend payments in the years to come. The Fortescue share price is fetching $17.92 today.

Healius Ltd (ASX: HLS)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this healthcare company’s shares to $5.50. The broker has upgraded its earnings estimates to reflect higher than previously forecast COVID-19 testing volumes. It also notes that FY 2023 is likely to be boosted by testing on international travellers. The Healius share price is trading at $4.98 on Wednesday afternoon.

Sandfire Resources Ltd (ASX: SFR)

Analysts at Macquarie have retained their outperform rating and $9.70 price target on this copper miner’s shares. According to the note, the broker was pleased with the company’s drilling results from the Motheo Project in Botswana. It believes the new discovery could provide it with a big boost to mining inventories. This comes at a time that copper prices are very favourable. The Sandfire Resources share price is trading at $6.58 today.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Leading broker reveals why these 10 big-name shares have been firing up its clients
• Fortescue (ASX:FMG) share price higher as China’s imports surge to record high in August
• Here are the 3 most heavily traded ASX 200 shares today
• Why the Rio Tinto (ASX:RIO) share price is in the red on Tuesday
• Fortescue (ASX:FMG) share price craters to 10-month low as iron ore prices plunge

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

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

We’re only 8 days into the new month and one ASX 200 share has already beaten its own record high a whopping 5 times.

That’s particularly impressive considering the S&P/ASX 200 Index (ASX: XJO) has fallen 0.33% so far this month.

Additionally, the overachieving stock has seen its share price gain 17% since August’s end.

So, which ASX 200 share is behind such a remarkable performance? Let’s take a look.

Which ASX 200 share is setting records in September?

The TechnologyOne Ltd (ASX: TNE) share price has started September with a bang.

Last Wednesday it hit a record high, reaching $10.31 in intraday trade after announcing a new acquisition. It bested that figure on Friday when it reached $10.52.

This week, it surpassed its brand new record on Monday before besting Monday’s record on Tuesday.

Now, it has a brand new record high of $11.61, which it hit in intraday trade today.

The enterprise software-as-a-service company has called the ASX 200 home since 2014.

Last week TechnologyOne announced it has acquired the UK-based higher education timetabling and resources scheduling software provider Scientia.

TechnologyOne expects the acquisition will cost around $22 million (converted from pound sterling at the current exchange rate), with an initial payment of around $11 million.

TechnologyOne isn’t the only ASX 200 share hitting record highs today.

The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price broke its previous record high when it traded for $38.37 earlier today. While it’s been quiet today, Soul Patts did release a trading update on Monday, which might be spurring its gains.

Additionally, Aristocrat Leisure Limited‘s (ASX: ALL) stock surpassed its previous best today when it hit $47.91. As The Motley Fool reported yesterday, the ASX 200 gaming giant’s day in the green might be being spurred by its online gaming business, which has been relatively unaffected by COVID-19 lockdowns so far.

The post This ASX 200 share has notched up 5 record highs this month appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares that may be worth looking at this weekend
• ASX 200 rises, TechnologyOne climbs, Milton up
• Why Metalstech, Mineral Resources, TechnologyOne, & Webjet are storming higher
• ASX 200 midday update: TechnologyOne hits record high, lithium miners rise
• TechnologyOne (ASX:TNE) share price hits record high on UK acquisition news

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company 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/3BPYSFr

Warren Buffett may well be the best-known investor on the globe.

And for good reason.

He bought his first shares 80 years ago and clearly had a knack for understanding the markets.

The 91-year-old investor has now accumulated a net wealth of US$$101.3 billion (AU$136.9 billion), according to Forbes. That makes the Oracle of Omaha the sixth wealthiest man on Earth.

For the past many years, Warren Buffett has been at the helm of Berkshire Hathaway. And while he doesn’t get every market move right, when he speaks, investors tend to listen.

Which is why more than a few investors are taking note that the so-called “Buffett Indicator” is pointing towards a potential share market crash.

What is Warren Buffett saying on global share market valuations?

Warren Buffett’s “Buffett indicator”, if you’re not familiar, divides the total market capitalisation of all the listed shares across the world by global GDP. Any figure above 100% (meaning global shares are valued at more than the world’s total annual output) indicates shares are relatively overvalued.

Now, as Business Insider reports, “Warren Buffett’s favourite market indicator has surged to a record high of 142%, signalling US and international stocks are heavily overpriced and could plummet in the months ahead.”

Back in 2001, Buffett told Fortune magazine the indicator is “probably the best single measure of where valuations stand at any given moment”. It went into the red during the dotcom bust.

Any reading below 80% would “likely be lucrative” for investors to buy shares.

The valuation in the United States share markets using Warren Buffett’s indicator are even more dire. Dividing the total market cap of all US listed shares by US GDP gives an indicator reading of 208%.

Welt market analyst Holger Zschaepitz responded by tweeting (quoted by Business Insider), “BOOM! Global stocks have gained another $US1.6 ($AU2) trillion in market capitalization this week. Equities now worth $US120.3 ($AU162) trillion, highest in history.”

Should we be worried about a crash?

Warren Buffett is doing the right thing by sounding a note of caution.

However, it’s worth bearing in mind that we are not living in ordinary times.

COVID-19 has seen global governments and central banks take extraordinary actions over the past 18 months. This has driven the cost of money to record lows, helping drive up global share prices, while global GDP has been hampered by pandemic related lockdowns and border closures.

Hence, in these extraordinary times, the Buffett indicator may need some retuning.

The post Warren Buffett’s indicator flashing red. Are we in for a share market crash? appeared first on The Motley Fool Australia.

More reading

• Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher
• Why the Okapi Resources (ASX:OKR) share price is rocketing 28% today
• IGO (ASX:IGO) share price slips despite positive survey updates
• The Zip (ASX:Z1P) share price has plunged 30% in 5 months. Is it a buy?
• Here’s why the Deep Yellow (ASX:DYL) share price has surged 45% in a month

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/38OSCS8

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.3% to 7,506.8 points.

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

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is up over 5% to 19.5 cents. This follows the release of a drilling update by the copper and gold explorer. According to the release, Aeris Resources’ drilling results show that its Constellation deposit is a high grade copper deposit with some exceptionally high grade intersections in the shallow supergene zone.

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is up 5% to $179.72. This follows the release of a trading update from the the investment bank. According to the release, Macquarie expects its first half profits to be down slightly on the second half of FY 2021. Looking further ahead, the bank believes it is positioned to deliver superior performance in the medium term.

Novonix Ltd (ASX: NVX)

The Novonix share price is up a further 9% to $5.36. This is despite there being no news out of the battery materials company today. However, after the market close on Friday, it was announced that Novonix would be joining the ASX 300 index at the next quarterly rebalance on 20 September.

Qube Holdings Ltd (ASX: QUB)

The Qube share price is up 3.5% to $3.38. This morning the company announced a binding agreement to acquire Newcastle Agri Terminal (NAT). According to the release, the total consideration is in the order of $90 million, which will be funded through Qube’s existing undrawn debt facilities. Completion is expected to occur on 30 September.

The post Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Macquarie jumps, gold miners sink
• Macquarie (ASX:MQG) share price gains 6% despite lower second half forecast
• 5 things to watch on the ASX 200 on Wednesday
• The Macquarie (ASX:MQG) share price is outperforming the ASX big 4 in the past month
• The Macquarie Group (ASX:MQG) share price smashed its record high on Thursday

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 Macquarie Group 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/3hcyv4O

The Okapi Resources Ltd (ASX: OKR) share price is soaring to dizzying heights after the company reported a positive update.

At the time of writing, the miner’s shares are up an astonishing 27.89% to 66.5 cents. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.26% to 7,806 points.

Let’s take a closer look at what the company announced to the ASX today.

Major gold discovery

In a statement to the ASX, Okapi Resources revealed the results at its 100% Enmore Gold Project in New South Wales.

The maiden drilling program returned a significant, thick, shallow gold mineralisation at the Sunnyside East Prospect. The company highlighted the following results:

• 174 metres at 1.83 grams per tonne of gold from surface (OSSRC06)
• 37 metres at 1.27 grams per tonne of gold from 27 metres deep (OSSRC01)
• 39 metres at 1.19 grams per tonne of gold from 51 metres deep (OSSRC02)

Okapi Resources executive director David Nour commented:

These results show the potential for a very large, shallow, high-grade gold deposit at our Enmore Gold Project, with mineralisation from surface with some of the highest grades returned below 170 metres. The depth potential is very encouraging and we have multiple prospects that remain untested.

In addition, the company conducted several other drill holes at the Sunnyside West Prospect, located around 400 metres from Sunnyside East. They included:

• 7 metres at 1.25 grams per tonne of gold from 30 metres deep (OSSRC07)
• 17 metres at 0.69 grams per tonne of gold from 20 metres deep (OSSRC08)

Okapi Resources noted that further work is required at Sunnyside, including following up on drill intercepts and locating high-grade shoots.

About the Okapi Resources share price

Over the past 12 months, Okapi Resources has gained more than 224%, with a year-to-date rise of 241%. The company’s share price hit a record high of 79.5 cents today before profit-taking set in.

Okapi Resources has a market capitalisation of approximately $67 million, with around 101 million shares on its books.

The post Why the Okapi Resources (ASX:OKR) share price is rocketing 28% today appeared first on The Motley Fool Australia.

More reading

• IGO (ASX:IGO) share price slips despite positive survey updates
• The Zip (ASX:Z1P) share price has plunged 30% in 5 months. Is it a buy?
• Here’s why the Deep Yellow (ASX:DYL) share price has surged 45% in a month
• Why the A2 Milk (ASX:A2M) share price has this leading broker’s Aussie clients scrambling
• Why these seasoned investors are watching the Pilbara (ASX:PLS) 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.

from The Motley Fool Australia https://ift.tt/2X3Ae5A

The IGO Ltd (ASX: IGO) share price has dipped into the red in afternoon trade on Wednesday.

Shares in the gold and minerals miner are on the way down despite the company releasing an update on its joint venture with Moho Resources Ltd (ASX: MOH).

Let’s investigate further.

A bit of background

Recall that IGO and Moho formed an unincorporated joint venture (JV) to explore and mine at Moho’s Buracoppin Gold project back in 2015.

Specifically, the JV pertains to a location known as “E70/4688” on the Buracoppin site. Moho is also the manager of the JV.

IGO has a 30% interest in the venture and the company has the option to contribute “pro-rata to ongoing work” or to convert its 30% interest into a “10% carried interest”.

What was announced today?

In news that could weigh in on the IGO share price, the company advised that “encouraging assay results” had been received from the “stream sediment sampling program” at Buracoppin.

The release was made through an announcement from Moho regarding the same assay results.

As per the release, a total of 369 samples were collected and “ten prioritised exploration targets” were identified as a result of the campaign.

These targets were found “within extensive areas of gold anomalism”. Some of the gold anomalism was “associated with arsenic and copper”, according to Moho.

As a result of the survey findings, “four areas [are] prioritised for further exploration” at the project. As such, an additional tenure has been granted, effectively “increasing [the] Buracoppin project by 12%”.

In addition, a “high resolution gravity survey” was completed at Buracoppin. The interpretation of this data “will assist Moho’s understanding” of the site.

Investors have sold IGO shares on the update and have pushed the IGO share price into the red on Wednesday.

IGO shares are now exchanging hands at $9.45 apiece, a 2.07% drop from the market open.

IGO share price snapshot

The IGO share price has climbed 47.5% over this year to date. This extends the gain over the previous 12 months to 111%.

Despite this, IGO shares are 3.6% in the red over the past month. They are around 2% in the red over the last week as well.

Nonetheless, both longer-term returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s returns of around 14% year to date and 25% over the past year.

The post IGO (ASX:IGO) share price slips despite positive survey updates appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares are trading ex-dividend today
• Why the IGO (ASX:IGO) share price is slipping today
• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to sell today
• IGO (ASX:IGO) share price jumps following 35% profit surge

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/3yRTsIm

Zip Co Ltd (ASX: Z1P) has had a tough run lately, but one trading and investment specialist has noted its clients have been drawn to its embattled share price.

Saxo Capital Markets placed Zip stock as one of the top 10 most traded stocks among its Australian clients last month. And it had some choice words to say about the future of the BNPL provider’s shares.

Right now, the Zip share price is $6.86, having fallen another 1.86% today.

Let’s take a look at what’s gotten Saxo’s clients riled up about the Zip shares.

Is now a good time to buy shares in Zip?

According to Saxo, its clients have been enthused by the Zip share price’s recent troubles.

The Zip share price fell a massive 34% over the 6 months ended 31 August. Zip’s often holds a spot on the list of the ASX’s most shorted shares, leading to increased volatility.

But is it a buy? According to Saxo, it’s not.

Saxo stated that Zip’s results for financial year 2021 were noticeably less impressive than those of its competitor, Afterpay Ltd (ASX: APT).

Zip posted an after-tax loss of $653 million for FY21. For comparison, Zip reported a loss of just $20 million for FY20.

Whereas Zip’s BNPL peer, Afterpay, reported a loss of $159.4 million for FY21.

Additionally, Zip ended the period with 7.3 million active customers and 51,300 active merchants. While Afterpay reported it had 16.2 million active customers and 98,200 active merchants.

According to Saxo, Zip’s FY21 performance has caused the market to lose confidence in its ability to compete globally.

Additionally, Saxo pointed to Square Inc‘s (NYSE: SQ) $39 billion acquisition of Afterpay and the continued growth of unlisted BNPL giant Klarna, stating Zip simply might not be able to keep up with the future of the BNPL industry.

Despite its recent poor performance, the Zip share price has gained 29% in 2021. It is also 1.6% higher than it was this time last year.

The post The Zip (ASX:Z1P) share price has plunged 30% in 5 months. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Leading broker reveals why these 10 big-name shares have been firing up its clients
• Afterpay’s done, so here’s the BNPL player we’re backing: expert
• These are the 10 most shorted ASX shares
• Zip (ASX:Z1P) share price jumps 2% despite new BNPL competitor
• It hasn’t been a great week so far for the Zip (ASX:Z1P) share price

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. owns shares of and has recommended AFTERPAY T FPO, Square, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/38QNBbr

The uranium sector is heating up and the Deep Yellow Limited (ASX: DYL) share price is no exception.

Shares in the uranium explorer have added another 6.38% to $1 on Wednesday, lifting its performance for the past month to an impressive 47%.

Why the Deep Yellow share price is almost vertical

Uranium spot prices have managed to climb to six year highs of US$35/lb.

This has sparked broad-based buying across the uranium sector, from large cap players like Paladin Energy Ltd (ASX: PDN) to newly listed explorers such as 92 Energy Ltd (ASX: 92E).

Uranium prices have been supported by the Sprott Physical Uranium Trust, the world’s largest actively managed uranium fund that invests in physical uranium.

The fund began trading on Canada’s Toronto Stock Exchange in July this year, but only recently began to aggressively buy uranium off the spot market.

The Motley Fool US reported that the fund purchased 900,000 lb of uranium on August 21, and then added another 1.1 million pounds by the end of August.

The aggressive buying continued, with the ETF adding 400,000 on 2 September.

The momentum is likely to continue with the Fool US saying that ” there’s been massive investor buying in the fund on big volumes this week. The higher the investor interest in the ETF, the larger the quantity of uranium it’ll buy.”

The sudden buying activity in the spot market has driven prices to multi-year highs, which in turn, is propping up the Deep Yellow share price.

What’s next for Deep Yellow?

Deep Yellow has been undergoing exploration activities at its Tumas Project in Namibia since 2017.

Back then, the Deep Yellow share price was fetching around 40 cents.

More recently, the company completed drilling at the Tumas 1 East site, delivering an impressive 102% direct conversion of existing inferred mineral resources to indicated mineral resources category.

The company believes its robust resource base will support and optimise its upcoming definitive feasibility study, which is expected to be completed by the end of calendar year 2022.

The post Here’s why the Deep Yellow (ASX:DYL) share price has surged 45% in a month appeared first on The Motley Fool Australia.

More reading

• Guess which sector last week’s top performing ASX shares come from
• ASX uranium shares are booming this week. Here’s why.

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.

from The Motley Fool Australia https://ift.tt/38LBaOc

A2 Milk Company Ltd (ASX: A2M) shares have emerged among the top 10 most popular traded stocks of Saxo Capital Markets’ Australian clients in August.

What did Saxo say about the A2 Milk share price?

A2 Milk managed to slide into number 10 on Saxo’s most popular stocks list, trailing behind household names such as Pilbara Minerals Ltd (ASX: PLS), Zip Co Ltd (ASX: Z1P) and Qantas Airways Ltd (ASX: QAN).

Saxo commented that:

The A2 Milk Company also made it in our list of the ten hottest stocks among our retail traders last month. The infant formula giant, which was once one of the favourites among the bulls, has lost its sparkle. The firm published its FY21 results towards the end of August, with revenue plunging over 30% to just AU$1.21bn.

Saxo analysts added:

Revenues fell most significantly throughout Australia and New Zealand, earnings 42% down year-on-year at AU$559.7m, which remains its biggest market. The stock’s increasingly bearish sentiment was compounded by a 77.6% fall in EBITDA to just AU$123m.

Popular, but for the wrong reasons

A2 Milk experienced heightened levels of trading activity following the release of its FY21 results.

On 26 August, the A2 Milk share price plunged 11.8% to $6.05 with ~27.5 million shares changing hands.

The next day, it would fall another 2.64% to $5.89 with volume of ~15.7 million shares.

To add some perspective, its current 10-day average volume is approximately 8 million.

Looking at A2 Milk’s volume profile, the company’s shares might have landed on Saxo’s top 10 list for the wrong reasons. Investors might have opted to sell their shares in August following yet another weak financial result.

What’s next for A2 Milk?

A2 Milk’s near-term outlook doesn’t appear to be so bright according to its results commentary.

The company has observed that the Chinese infant nutrition market was “materially impacted by a lower birth rate, especially recently due to COVID-19 and related vaccination programmes causing many people to delay pregnancy”.

Competition in the Chinese market has also been intensifying, with A2 Milk citing that “market share gains by domestic brands compared to international brands are expected to continue”.

The post Why the A2 Milk (ASX:A2M) share price has this leading broker’s Aussie clients scrambling appeared first on The Motley Fool Australia.

More reading

• Leading broker reveals why these 10 big-name shares have been firing up its clients
• Leading brokers name 3 ASX shares to sell today
• Here’s why the A2 Milk (ASX:A2M) share price is down 6% in a month
• Why the A2 Milk (ASX:A2M) share price is souring again today
• ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200

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 recommended A2 Milk. 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/3DYgC3x