Tag: Motley Fool

Reporting season is well underway with household S&P/ASX 200 Index (ASX: XJO) shares including REA Group Limited (ASX: REA) and ResMed Inc (ASX: RMD) announcing FY21 results on Friday.

Company results can make or break the share price. However, these 2 ASX 200 shares have already run off into record territory.

ASX 200 shares trading at all-time highs

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price has rallied almost 24% year-to-date to a record close of $63.95 on Friday.

Wesfarmers is truly a diversified conglomerate. It made headlines with its interest in acquiring Australian Pharmaceutical Industries Ltd (ASX: API). Additonally, it gained ministerial approval to commence construction and project development for its Mt Holland lithium project.

ASX 200 shares in the lithium sector have been running hot in the past couple of months. Heavyweights Pilbara Minerals Ltd (ASX: PLS) and Galaxy Resources Limited (ASX: GXY) have cruised to triple-digit year-to-date returns.

With the approvals in place, this means Wesfarmers, which investors typically associate as the owner of Bunnings and Officeworks, will also emerge as a lithium hydroxide producer in the second half of 2024.

While Wesfarmers has exciting plans to diversify its business operations, investors will likely be fixated on its upcoming full-year results. Additionally, they will look at how its core retail businesses have performed over the past financial year.

Wesfarmers is expected to deliver its earnings on Friday, 27 August.

Goodman Group (ASX: GMG)

The Goodman share price has rallied strongly ever since it broke above the $20 level in early June.

Shares in the industrial real estate investment trust (REIT) have rallied 10% in the past month. They are also up 20.6% year-to-date.

In the company’s third-quarter update, group CEO Greg Goodman described the company’s portfolio. He said: “We have concentrated our portfolio in high barrier to entry markets where land is scarce and use is intensifying.

“With a focus on long-term customer requirements, we are developing to meet demand in these consumer markets, providing essential real estate infrastructure for our customers.”

According to Goodman’s website, the company is expected to report its full-year FY21 results on 12 August.

Goodman’s third-quarter update reaffirmed its FY21 guidance of $1.2 billion in operating profit. This represents earnings per share growth of 12% on FY20 figures.

The post 2 ASX 200 shares lifting to record highs before full-year results appeared first on The Motley Fool Australia.

More reading

• How does the Wesfarmers (ASX:WES) share price perform during lockdowns?
• Wesfarmers (ASX:WES) share price hits new all-time high on renewed API interest
• Why the Wesfarmers (ASX:WES) share price is trading at record highs
• Here’s why the Coles (ASX:COL) share price is up 7% this last month
• Should you buy Wesfarmers (ASX:WES) shares in August 2021 for the dividend yield?

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 recommended ResMed. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended REA Group Limited and ResMed Inc. 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/3CogbyE

Commonwealth Bank of Australia (ASX: CBA) slightly underperformed the S&P/ASX 200 Index (ASX: XJO) today.

The CBA share price finished the day flat at $103.41, compared to a gain of 0.36% on the ASX 200.

Tuesday was the only day the CBA share price retraced, closing down 0.2%. Over the past 5 days, CommBank shares are up 2.8%.

Here’s what investors were keeping an eye on this week.

How the banks are making the most of low interest rates

The current record low interest rates have thrown up some difficulties for banks, who find their lending margins squeezed by the lack of wiggle room before hitting 0%.

However, it’s precisely these rock bottom rates that are driving surging Aussie housing prices. Which, in turn, is helping support the CBA share price.

According to data from CoreLogic, Aussie house prices leapt 1.6% higher in July. That brought the year-to-date price gains to 14.1% and the 12-month increase to 16.1%.

CoreLogic’s research director, Tim Lawless pointed to record low mortgage rates as fuelling the price surge.

That same surge has seen a big lift in Aussie banks’ mortgage balances. Reserve Bank (RBA) data indicates the month-on-month growth in June of 0.7% is the fastest growth rate since 2010.

Over the past 12 months, CommBank’s own mortgage book grew by 6.7%.

CBA share price in the spotlight ahead of FY21 results

Next Wednesday, 11 August CommBank is set to deliver its 2021 financial year results.

With that in mind, this past Wednesday the Motley Fool looked at what the market can expect from the CBA share price following the results.

According to a note out of Goldman Sachs (NYSE: GS), those results should be strong. CommBank is expected to finish FY21 with significant surplus capital. However, Goldman’s forecast falls a bit below the current market consensus.

The broker also retained its current sell rating with a price target of $81.87 per share. That’s well below the current CBA share price of $103.38.

The post What’s moving the CBA (ASX:CBA) share price this week appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) share price in focus following ABA loan deferral update
• Should you buy NAB (ASX:NAB) shares in August 2021 for the dividend yield?
• Top brokers name 3 ASX shares to sell today
• How did the CBA (ASX:CBA) share price perform in July?
• FY 2021 results preview: Is the CBA (ASX:CBA) share price good value?

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/3yvkMMS

The Atomo Diagnostics Ltd (ASX: AT1) share price bolted more than 8% at one point during today’s session.

The medical device company finished the day up 4.55% at 23 cents.

Atomo shares have seen greater interest as Australia battles to control a new wave of COVID-19 infections.

Here’s why the Atomo share price is getting extra attention today.

Atomo share price up on COVID-19 rapid testing

The Atomo share price has come under the spotlight as the COVID-19 pandemic threatens to get out of hand in Australia.

Although Atomo has not released any price-sensitive news today, an article in The Australian could explain why shares in the biotech are racing higher.

The article highlighted the benefit of rapid antigen testing for COVID-19, as the outbreak in Australia worsens.

Australia has largely relied on pathology testing to detect positive cases and assist contact tracers.

However, given the rapid spread of the recent COVID-19 outbreaks, the need for rapid antigen testing has grown.

According to the article, rapid antigen tests can detect COVID-19 in as little as 10 minutes. By comparison, pathology testing can take up to three days to deliver a result.

In particular, the article highlighted the rapid COVID-19 test produced by Atomo.

The article noted that Atomo’s rapid tests have been supplied to various Olympic and sporting teams.

The tests have also been supplied to aged care providers.

The article also highlighted that Atomo has been supplying tests to the Australian Defence Force and mining and oil companies.

In the article, Atomo’s Chief Executive John Kelly said:

“And the problem is exacerbated by the fact that to get a product accepted in the state healthcare systems it really needs to be reimbursed. It’s been extremely difficult, nigh impossible, for point-of-care diagnostics to get reimbursement in Australia.”

More on the Atomo share price

Atomo is a medical device company that supplies rapid diagnostic test devices to the global diagnostic market. The company’s patented devices simplify testing procedures and enhance useability for professional users.

Of particular interest is Atomo’s CareStart EZ COVID-19 test.

CareStart EZ COVID-19 is a rapid antibody test, developed by Atomo in conjunction with its partner Access Bio.

Most recently, the Atomo share price received a boost after announcing that Access Bio received Emergency Use Authorisation (EUA) from the U.S. Food and Drug Administration (FDA) for point-of-care use of its CareStart EZ COVID-19 test.

Shares in the medical device company hit an intraday high of 24 cents today.

The post Here’s why the Atomo (ASX: AT1) share price flew 4% higher today appeared first on The Motley Fool Australia.

More reading

• The Atomo (ASX:AT1) share price has shot up 9%. Here’s why
• Ellume is making news and these ASX shares are surging, again
• Here’s why the Atomo (ASX:AT1) share price is soaring 10%

Motley Fool contributor Nikhil Gangaram 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/3jsr0XH

ASX investors have been keeping a keen eye on inflation figures these past months.

And for good reason.

With the onset of the COVID-19 pandemic in early 2020, governments and central banks across the globe sprang into action to stave off an economic depression.

This saw interest rates fall to historic lows, quantitative easing (QE) ramp up to historic highs, and government stimulus packages reaching into the trillions of dollars.

These coordinated actions have been successful at limiting economic hardships from lockdowns and border closures.

However, many analysts are concerned that the flood of easy money is priming the pump for inflation to run hot.

Why is rising inflation a concern to ASX investors?

Modest annual price rises have long been baked into the economic pie.

The Reserve Bank of Australia (RBA) has an official target level of 2-3% annual inflation.

But problems arise when inflation begins to exceed these levels. To keep prices from running high too fast, central banks resort to increasing interest rates. That in turn sees your own bank bumping up its rates.

While higher interest rates can indicate a healthy economy, they also increase the cost of money.

That’s a potential concern to ASX investors, as share markets tend to thrive on low rates. When rates do go higher, other assets – like bonds and bank term deposits – become relatively more attractive to shares.

In addition, highly leveraged ASX shares will come under more pressure if their borrowing costs increase.

Now, to date, many analysts believe that the recent jump in inflation we witnessed in Australia is a temporary issue. One related to the big pullback in costs from last year.

If that’s the case, ASX shareholders can cross one worry off their lists.

Adding to that view, the latest data out of Japan appears to indicate that massive central bank bond purchases and staggering levels of government debt may not be the inflationary bugbears we feared.

Record debt to GDP ratio amid deflation

According to data from Statista, Japan’s debt to GDP ratio in 2020 stood at 256%. That’s the highest of any developed nation. A position Japan has held for more than a decade now.

Almost half of this debt is currently held by the country’s central bank. The Bank of Japan (BOJ) set the bar high with its big spending QE program in the early 2000s. And the BOJ is still going strong on bond purchases.

Yet despite all of that, as Bloomberg reports, Japan is again looking at a period of negative inflation, or deflation.

This comes as the nation restructures the weighting of items it counts in the consumer price basket. With mobile phones no longer considered a luxury but a necessity, phone charges (which have been falling) will be among the items to get an increased weighting.

Yoshiki Shinke, chief economist at Dai-Ichi Life Research Institute said, “It’s very likely inflation will fall back into negative territory.”

Economists believe June will see deflation of -0.1%, “extending the run of falls to at least 12 months”.

According to Bloomberg, “Softer prices will also likely add to the view that the Bank of Japan will keep its stimulus in place for years to come despite the inflation fears experienced elsewhere in the world.”

Of course, this doesn’t mean that Australia’s own inflation path will be equally benign.

But if it is, the ASX could benefit from an extended run of easy money.

The post Why ASX investors worried about inflation should look to Japan appeared first on The Motley Fool Australia.

More reading

• Here’s why the Atomo (ASX: AT1) share price flew 4% higher today
• 3 popular ETFs ASX investors need to know
• Why the Rex Minerals (ASX:RXM) share price crashed 16% today
• One reason why the Domain (ASX:DHG) share price is down 7%
• Brokers name 3 ASX shares to buy today

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/3Afbc1d

If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be worth considering.

Rather than deciding on which individual shares you should put your funds into, ETFs allow you to invest in a large group of shares through just a single investment.

With that in mind, I have picked out three popular ETFs to get better acquainted with. They are as follows:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to look at is the BetaShares Global Cybersecurity ETF. This fund provides investors with exposure to the leaders in the global cybersecurity sector. This area is heavily under-represented on the ASX, which is a shame given how rapidly it is growing. Among the companies in the fund are cyber security giants Accenture, Cloudflare, Crowdstrike, and Okta.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF to consider is the BetaShares NASDAQ 100 ETF. This ETF will give you exposure to the 100 largest non-financial shares on the famous NASDAQ stock exchange. Among the companies that you’ll be buying a slice of are tech giants such as Amazon, Apple, Facebook, and Microsoft, to name a few. There are also non-tech stocks such as Pepsi, Starbucks and Tesla in the fund. Given the positive long term outlooks of these companies, the BetaShares NASDAQ 100 ETF has been tipped to generate solid returns for investors.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to the growing video gaming market. Among the companies included in the fund are hardware giant Nvidia and game developers Take-Two and Electronic Arts. VanEck highlights that these companies are in a position to benefit from the increasing popularity of video games and eSports.

The post 3 popular ETFs ASX investors need to know appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs for ASX investors in August
• 3 excellent ETFs for ASX investors in August
• Why Betashares Nasdaq 100 ETF (ASX:NDQ) could be a great investment
• 2 top ETFs that might be buys in August 2021
• 2 excellent international ETFs for ASX investors

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 BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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/3lBE6EL

The Rex Minerals Ltd (ASX: RXM) share price fell heavily today after emerging from a trading halt.

At the closing bell, the mineral exploration company’s shares were swapping hands for 30 cents, down by 16.67%.

What did Rex Minerals announce?

A catalyst for today’s fall could be concerns about an impending share dilution. According to its release, Rex Minerals has successfully raised $50 million (before costs) in a two-tranche placement.

The offer received strong support from existing institutional, sophisticated and professional investors. The company also added new institutional investors to its register.

Rex Minerals listed the issue price for 166.7 million new ordinary shares at 30 cents apiece. This reflected a 14% discount on the last closing price of 35 cents on 3 August.

The shares will be split across two separate tranches, with the first portion coming under the company’s listing rule 7.1. This allows them to issue approximately 17.8 million shares without shareholder approval.

The second portion of shares (roughly 148.8 million) will be subject to shareholder approval at a meeting in September.

All the company’s non-executive directors have participated in the placement, with those shares also conditional on shareholder approval.

The proceeds of the placement will be used to mostly fund pre-development activities at Rex Minerals’ wholly-owned Hillside copper project in South Australia. Furthermore, the company will set aside some of the money for its 100%-owned Hog Ranch gold property in Nevada, United States.

Rex Minerals managing director and CEO Richard Laufmann commented:

This is a significant milestone for the company and for the development of the Hillside copper project. A strong appetite from institutional investors reflects support for the development thematic to be a part of this nation-building project.

The funds raised place the company in a great position to begin pre-development at Hillside whilst progressing towards a Final Investment Decision for Stage 1 late next year, as well as pursuing additional value at Hog Ranch.

About the Rex Minerals share price

It’s been a wild ride for Rex Minerals shareholders, with the company’s shares accelerating by almost 80% year to date. Looking at a longer time frame, Rex Minerals shares are up around 38% since this time last year.

Based on today’s price, Rex Minerals has a market capitalisation of around $128.8 million, with approximately 422 million shares outstanding.

The post Why the Rex Minerals (ASX:RXM) share price crashed 16% today appeared first on The Motley Fool Australia.

More reading

• One reason why the Domain (ASX:DHG) share price is down 7%
• Brokers name 3 ASX shares to buy today
• Why the EML (ASX:EML) share price is gaining today
• The Vulcan Energy (ASX:VUL) share price is rocketing 14% higher
• If you invested $2,000 in Fortescue (ASX:FMG) shares 5 years ago, this is how much it would be worth now

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/3AdLVVe

The Domain Holdings Australia Ltd (ASX: DHG) share price is having a rough day on the market.

At the time of writing, shares in the online real estate listings company are swapping hands for $4.55 – down 6.48%.

While the company hasn’t made any price-sensitive announcements in over 2 months, one possible explanation may be spillover from REA Group Limited (ASX: REA)’s full-year results. REA Group is down 5.62% presently to $157.88 per share.

Let’s take a closer look.

The Domain share price is falling

As Motley Fool reported, the REA Group share price is deep in the red despite impressive financial results. REA’s revenue was up 13% to $928 million and net profit jumped 18% to $318 million. Earnings before interest, taxes, depreciation, amortisation (EBITDA) increased 19% to $565 million and the company will pay a dividend of $1.31 per share – up 19% year-on-year.

However, in its report, REA management also revealed that istings for July fell 3% year-on-year. They attributed this to a sharp decline in the Sydney market due to the city’s COVID induced lockdown.

This is an industry wide factor and since Domain and REA Group are competitors, this could explain the steep fall in the Domain share price, as well as REA’s.

The harbour city has been in lockdown for 6 weeks as of writing. During that time, the Domain share price has fallen 10.5% and the REA share price has slumped 4.65%.

Domain share price snapshot

Despite today’s losses, over the past 12 months, the Domain share price has increased 33.9%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is up 24.4% over the same time period. In other words, Domain has outperformed the ASX 200 by 9.5 percentage points.

Year-to-date is a different story. The ASX 200 is 12.4% higher since the beginning of the year while Domain Holdings is 0.2% lower.

The 52-week high for Domain is $5.61 and its 52-week low is $3.42.

Domain is majority owned by Nine Entertainment Co Holdings Ltd‘s (ASX: NEC) subsidiary Fairfax. It has a market capitalisation of around $2.83 billion.

The post One reason why the Domain (ASX:DHG) share price is down 7% appeared first on The Motley Fool Australia.

More reading

• Why BHP, Northern Star, REA, & ResMed shares are dropping
• ASX 200 midday update: REA & ResMed results, Afterpay jumps
• REA (ASX:REA) share price in focus after strong FY 2021 growth
• 5 things to watch on the ASX 200 on Friday
• Top brokers name 3 ASX shares to buy today

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 REA 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/3rWXg97

It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

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:

GUD Holdings Limited (ASX: GUD)

According to a note out of Macquarie, its analysts retained their outperform rating but trimmed their price target on this diversified products company’s shares to $13.60. Macquarie notes that GUD delivered a full year result largely in line with expectations. This was driven by an impressive performance by the company’s Automotive business. And while lockdowns are impacting its performance, Macquarie expects GUD to rebound once trading conditions return to normal. The GUD share price is trading at $11.37 today.

Nick Scali Limited (ASX: NCK)

A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this furniture retailer’s shares to $13.80. The broker was pleased with Nick Scali’s FY 2021 results. It also wasn’t surprised with its poor start to FY 2022 because of the impact of lockdowns and was already factoring this into its forecasts. As a result, it remains positive on Nick Scali’s medium term outlook and expects its market position to strengthen once the pandemic passes. The Nick Scali share price is fetching $12.14 on Friday.

Reliance Worldwide Corporation Ltd (ASX: RWC)

Analysts at UBS have upgraded this plumbing parts company’s shares to a buy rating with an improved price target of $6.16. According to the note, the broker expects the repairs and renovation markets to grow, supporting demand for Reliance Worldwide’s products. And while it acknowledges that high copper prices could be a headwind, it expects this to be offset by price increases and cost outs. The Reliance share price is trading at $5.64 today.

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

More reading

• Banks, NIB and Nuix share prices rise. Nick Scali flying. Scott Phillips on Nine’s Late News
• 2 leading ASX dividend shares that just reported more growth in FY21
• ASX 200 rises, Nick Scali falls, Pinnacle jumps
• Why Emerge Gaming, Imugene, Mesoblast, & Nick Scali shares are dropping
• Nick Scali (ASX:NCK) share price up 5% to record high on FY 2021 results

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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended Reliance Worldwide Corporation 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/3Ag6WyG

The EML Payments Ltd (ASX: EML) share price is gaining today despite no news having been released by the company.

However, the S&P/ASX 200 All Technology Index (ASX: XTX) is also gaining, as are many ASX buy now, pay later (BNPL) stocks.

Additionally, the Reserve Bank of Australia’s (RBA) governor Philip Lowe has stated he would like to see a special licencing system for payment providers.

Let’s take a closer look at what might be influencing the financial services company’s shares today.

What’s driving EML Payments?

There’s seemingly no pinpoint moment that’s driving the EML share price today.

However, there have been a few breadcrumbs that could be increasing investors’ sentiment in the payment company.

The first is the bullish BNPL and technology sector. The ASX 200 technology index is up 0.99% today. At the same time, many BNPL stocks are gaining as they have been for most of this week, spurred by an exciting takeover offer handed to Afterpay Ltd (ASX: APT) that hit the news cycle on Monday.

Additionally, governor of the RBA Philip Lowe told a standing committee on economics today that he believes Australia’s regulatory system needs to be adjusted to account for modern payment providers. He said the payments landscape is changing quickly and our regulatory systems need to keep up.

While nothing in particular came of the conversation, aside from flagging the RBA’s concerns, it puts the spotlight on companies like EML Payments, potentially influencing its share price.

Finally, today’s gains could be a rebalancing from the market’s negative reaction to news released by EML Payments on Friday.

Then, the company stated it’s found historical issues regarding cash from dormant and expired e-money accounts. The troubles date to before the company acquired Prepaid Financial Services.

The EML Payments share price fell 2.2% on the back of the news.

EML Payments share price snapshot

Today’s gains aren’t enough to boost the EML Payment share price back into the green.

The company’s shares have fallen 10% since the start of 2021. However, its 21% higher than it was this time last year.

The post Why the EML (ASX:EML) share price is gaining today appeared first on The Motley Fool Australia.

More reading

• What’s going on with the EML Payments (ASX:EML) share price?
• ASX 200 midday update: GUD results, Woodside update, ANZ appointment
• EML (ASX:EML) share price up 5% on Tuesday
• The EML Payments (ASX:EML) share price is falling today. Here’s why
• Two months on, what is the outlook for the EML Payments (ASX:EML) 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 and EML Payments. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and EML Payments. 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/2VujoMf

The Vulcan Energy Resources Ltd (ASX: VUL) share price is ending the week in style. The lithium developer’s shares are rocketed 14% higher today after a week of positive announcements.

It has been a stellar month for the company as lithium prices continue to rise, with expectations of further tailwinds. In the past month, Vulcan shares have delivered a 60% return to shareholders.

Let’s take a look at what’s charging the excitement.

Milestone moments

Investors are bidding up the Vulcan share price leading into the weekend. This follows two notable announcements during the week.

Firstly, on Monday the company revealed its Zero Carbon Lithium Project will produce negative carbon emissions. This was a result of updated data fed into Vulcan’s life cycle assessment.

According to the new data, the lithium project located in western Germany is expected to produce more renewable energy than it would consume in the process. Potentially lucrative, the company plans to export the excess to the German electricity grid. The announcement sent the Vulcan share price roaring ahead on the day.

Secondly, another offtake deal was penned on Monday. In addition to the offtake agreement signed with LG Energy Solution last week, Vulcan can now count Renault as another partner.

According to the release, the agreement will see Renault purchase between 6,000 tonnes and 17,000 tonnes of lithium per annum for 5 years.

Positive lithium potential boosts Vulcan share price

Adding to the positive outlook for Vulcan, analysts at Macquarie are forecasting further momentum in spodumene prices. Optimistic expectations from the analysts follow spodumene prices cracking US$1,000 a tonne. Spodumene is a mineral that contains a source of lithium.

Additionally, the broker explained that global electric vehicle (EV) sales surged 153% year-over-year (YoY) in June to 540,000. Similarly, EV sales came to 2.4 million in the first half — an increase of 161% YoY.

However, the commodities strategy team at Macquarie is forecasting 2021 full-year sales to come in between 4.8 million and 5.3 million.

Rising tide lifts all boats

Thanks to the positive outlook for the lithium sector as a whole, the Vulcan share price is not the only one enjoying a strong performance today. Other ASX-listed lithium developers and producers enjoying the ride on Friday include:

• Piedmont Lithium Inc (ASX: PLL) up 5.33% to 79 cents per share,
• Sayona Mining Ltd (ASX: SYA) up 7.37% to 10.2 cents per share,
• Pilbara Minerals Ltd (ASX: PLS) up 3.47% to $2.09 per shares, and
• Lake Resources NL (ASX: LKE) up 13.04% to 64 cents per share.

All of the above lithium companies have skyrocketed from their respective price points a year ago. The Vulcan share price is now an astonishing 2,300% above where it was a year ago.

The post The Vulcan Energy (ASX:VUL) share price is rocketing 14% higher appeared first on The Motley Fool Australia.

More reading

• Here are the top movers in the ASX 300 today
• Why AnteoTech, BetMakers, News Corp, & Vulcan shares are racing higher
• Why the Vulcan (ASX:VUL) share price is running hot in August
• Why Argosy Minerals, Genworth, Vulcan, & Zip shares are charging higher
• Here’s why the Vulcan (ASX:VUL) share price is rocketing 11% higher

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. owns shares of and has recommended Piedmont Lithium Inc. 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/3xCZMmt