Tag: Motley Fool

Victoria looks set to follow the country’s largest state into lockdown, which will deliver a big blow to the economy and travel-related ASX 200 shares.

The Corporate Travel Management Ltd (ASX: CTD) share price slumped 3.5%, Webjet Limited (ASX: WEB) share price dived 2% and Flight Centre Travel Group Ltd (ASX: FLT) descended 1.5% at the time of writing.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) dipped 0.3% in the red as news of the potential lockdown broke.

ASX 200 travel shares hit by new lockdown

Victorian Premier Daniel Andrews is expected to announce that the snap lockdown will start from midnight tonight, reported the Australian Broadcasting Corporation.

The drastic move comes as the state recorded two cases of COVID-19 infections that were transmitted at the AFL game at the MCG on Saturday.

A COVID-positive case linked to the NSW removalists at the Ariele apartment attended the match and is believed to be the source of the infection. The 60-year-old man was asymptomatic but carries the highly transmittable Delta variant.

Uncertainty clouds ASX 200 travel shares

The ABC reported that one of the two new cases sat close to the man at the MCG, while the other was further away but in the same section.

It’s not known how long the Victorian lockdown will last as authorities are said to be still in discussions.

Victoria takes the unenviable title of being the most locked-down and restrictive state in Australia as this snap lockdown will be its fifth.

Victoria adds to Sydney-induced economic contraction

These are nervous times for shareholders of ASX 200 travel shares. These shares have been whipped sawed as states move in and out of lockdowns to contain the virus.

As it stands, the lockdown in Sydney that started three weeks ago will likely cause Australia’s GDP to contract in the third quarter, reported Reuters.

This was before the news of the likely Victorian lockdown broke. If our economy was to shrink as forecast, it would be the first time it contracted since the June 2020 quarter.

ASX travel shares heading for more turbulence

ASX 200 travel related shares will take the brunt of the lockdowns as borders slam shut to Aussies living in the two biggest states in the country.

Interestingly, the Qantas Airways Limited (ASX: QAN) share price is just able to keep its head above breakeven today. But it’s down by around 17% from last November’s peak.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is another holding up better than most today. A takeover battle to seize control of our largest airport is helping.

This makes me wonder if any sell-off in ASX 200 travel shares are a buying opportunity. Activity tends to rebound sharply once the lockdown is lifted and M&A interest provides a second safety net.

The post Fresh blow to ASX 200 travel shares as Victoria lockdown looms large appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher
• These ASX shares are the latest buy ideas from top brokers
• Sydney Airport (ASX:SYD) share price on watch after takeover bid rejected
• 3 ASX shares to snap up before reporting season: expert
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Brendon Lau owns shares of Webjet Ltd. Connect with me on Twitter @brenlau.

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 Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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/3iftsQE

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.25% to 7,334.5 points.

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

ARB Corporation Limited (ASX: ARB)

The ARB share price is up 8% to $44.68. Investors have been buying the 4×4 parts manufacturer’s shares following the release of a market update. According to the release, ARB achieved a 33.9% increase in unaudited sales revenue to $623 million in FY 2021. Things were even better on the bottom line thanks to margin expansion. The company expects its profit before tax to be within the range of $145 million to $150 million. This will be an increase of 85.5% to 92% on FY 2020’s profit before tax of $78.1 million.

Rhythm Biosciences Ltd (ASX: RHY)

The Rhythm Biosciences share price is up 4% to 88.5 cents. This morning the diagnostics company announced the creation of a wholly owned US domiciled entity, IchorDX. This will enable Rhythm to pursue its international expansion activities for ColoSTAT in one of its largest priority markets. ColoSTAT is intended to be a simple, affordable, minimally invasive and effective blood test for the early detection of bowel cancer. Management notes that the US market represents one of the largest diagnostic markets in the world, with a current addressable market of over 94 million people.

Sezzle Inc (ASX: SZL)

The Sezzle share price has jumped 7% to $8.53. This morning the buy now pay later (BNPL) provider revealed that Discover Financial Services has agreed to invest US$30 million into Sezzle. Discover has 48 million merchant locations and generated US$417 billion in total network volume last year. In addition to the investment, the two parties plan to work on a buy now, pay later network solution on the Discover Global Network.

Spark Infrastructure Group (ASX: SKI)

The Spark share price has stormed 7.5% higher to $2.66 after receiving and then rejecting a takeover approach. This morning the energy network operator revealed that it received a conditional and non-binding indicative proposal from Ontario Teachers’ Pension Plan Board (OTPP) and Kohlberg Kravis Roberts & Co (KKR) of $2.70 cash per share. The Spark Board believes it undervalues the company.

The post Why ARB, Rhythm Biosciences, Sezzle, & Spark shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Why the Rhythm Biosciences (ASX:RHY) share price is racing 6% higher
• ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher
• Spark Infrastructure (ASX:SKI) share price rallies 7% on confirmed bid
• Sezzle (ASX:SZL) share price higher on Discover investment & partnership
• The Afterpay share price just had its worst day since February 2021. Here’s why

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB 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/3B6M79W

The Myer Holdings Ltd (ASX: MYR) share price has rallied 15% in the past week, cruising to a 52-week high of 50 cents during trading today.

However, at the time of writing, Myer shares have retreated to 48 cents — 2% down on yesterday’s closing price.

The strength behind the Myer share price comes in the wake of the decision to extend lockdown in Sydney by at least another 14 days until 30 July.

Why the Myer share price is ignoring lockdown concerns

Myer shares have been resilient in the past few weeks. This is likely propped up by news on 6 July Solomon Lew had been accumulating Myer shares through his Premier Investments Limited (ASX: PMV).

It has been reported Lew has increased his substantial shareholding in Myer from 10% to more than 15%.

According to the Australian Financial Review, the rationale behind Lew’s interest is to “bring about change at the struggling retailer”.

Myer responded to Lew’s increased shareholding on 8 July. The company said it was “open to discussing appropriate board representation of Premier Investments through nomination to the Myer board.”

Despite this, Myer was reluctant to change the direction of its business strategy.

Myer’s acting chairman JoAnne Stephenson reiterated the business is performing well:

We have a well-articulated strategy in the Customer First Plan and it is delivering positive results, as seen at our 1H results despite the ongoing challenges that lockdowns and CBD traffic limitations present.

However, Premier Investments was ruthless with its reply, saying:

In Premier’s view, Myer’s three remaining non-executive directors should for once put its shareholders first and resign immediately. Any other action would be futile, and costly for Myer shareholders who have endured enough.

With both Myer and Premier Investments fighting for what they think is best for the company, the Myer share price has rallied 32.4% during this time from 37 cents to 49 cents at the time of writing.

The post Myer (ASX:MYR) share price rallies to 52-week high despite lockdowns appeared first on The Motley Fool Australia.

More reading

• Why the JB Hi-Fi (ASX:JBH) share price is down 7% this month
• Myer (ASX:MYR) share price jumps 7% as investor calls its lawyers
• Why Humm, Premier Investments, Western Areas, & Zip shares are sinking
• 2 ASX 200 shares that could be great for dividends
• Myer (ASX:MYR) share price on watch after responding to Premier investment

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/36Bvpl9

The CSL Limited (ASX: CSL) share price is falling amid reports Australia might not be capable of producing mRNA vaccines until 2023.

Right now, shares in CSL are swapping hands for $276.09 – 1.33% less than yesterday’s closing price.

The fall in the CSL share price comes alongside a fairly lacklustre day for the broader market. However, the S&P/ASX 200 Index (ASX: XJO) is currently only down by 0.15%. The All Ordinaries Index (ASX: XAO) has also fallen by only 0.11% today.

Let’s take a closer look at what’s being reported today.

Is CSL winning the race for Moderna?

According to reporting by The Sydney Morning Herald (SMH), the Federal Government is preparing to receive commercial bids from companies hoping to build Australian facilities capable of creating mRNA vaccines. COVID-19 vaccines by Moderna and Pfizer are both examples of mRNA vaccines.

However, the publication claims scientists believe funding for the vaccines’ production is markedly less than what’s needed. Additionally, it reported some estimates put to the government claim it could take 3 years to build a facility capable of producing mRNA vaccines.

Whether delays in creating mRNA vaccines locally are helping drive the CSL share price lower isn’t clear, particularly since it’s already been out of form lately.

SMH reports that CSL is said to be a strong bet to win the bidding process, spurred by its proven capabilities in manufacturing the AstraZeneca vaccine.

One unnamed scientist reportedly said expanding CSL’s facilities to produce mRNA vaccines would be a “no-brainer”.

However, SMH claims the government’s funding promise is far too low for Moderna to consider allowing manufacturing in Australia.

According to SBS, companies interested in receiving funding to create mRNA vaccines must lodge a fully costed approval for a facility to the Federal Government. The facility must be capable of making mRNA vaccines and therapeutic goods over the next decade.

CSL share price snapshot

 The CSL share price has been having a tough time on the ASX lately.

It has fallen by around 3% year to date and is also almost 4% lower than it was this time last year.

The post CSL (ASX:CSL) share price lower amid reported mRNA vaccine delays appeared first on The Motley Fool Australia.

More reading

• This fundie is underweight CSL (ASX: CSL) shares. Here’s why.
• Why the CSL (ASX:CSL) share price has trailed the ASX 200 by 23% in the last year
• Are the 10 highest paid ASX 200 CEOs worth their paypackets?
• Which ASX 200 shares helped deliver record profits and a 4.5% dividend?
• The CSL (ASX:CSL) share price is down 8% in the past month, here’s why

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 CSL Ltd. 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/2VKTO5C

The Ookami Ltd (ASX: OOK) share price appears to be skyrocketing today. However, this is deceiving from what has really gone on behind the scenes. Before jumping in due to the fear of missing out (FOMO), have a read of what is really going on here.

At the time of writing, the Ookami share price is up 1127.27% to 27 cents. However, this shouldn’t be taken for face value, as you’ll see below.

The Ookami share price 10 bagger isn’t what it seems

At first glance, it would be easy to think this company has become a 10 bagger in a single day. Don’t as the saying goes… judge a book by its cover.

A while ago, Ookami operated in the software-as-a-service and digital asset space. The company had previously been developing an ecosystem of technology solutions involving blockchain-based smart contracts.

However, now the company has re-listed with a change in direction. In a major shift, the company acquired interests in two African exploration projects in March 2021. Specifically, this involved a 57% interest in Valhalla Minerals and a 100% interest in Cameroon Cobalt.

In the process of re-listing, the company undertook a consolidation of shares on issue. As a result, the number of shares on issue reduced from ~340.74 million to ~4.26 million. Doing some quick math, that is a 1 for every 80 share consolidation.

Essentially, if the market capitalisation of the company was to remain unchanged – the share price would need to be 80 times greater due to the reduction in share count.

Prior to relisting and consolidation, the Ookami share price was 2.2 cents. Therefore, to represent the same value post-consolidation, the new Ookami share price would need to be $1.76.

Based on this, the company’s share price has actually fallen 84% upon relisting.

Lastly, it is worth mentioning that the company plans on changing its name to Panthera Metals Limited.

The post The Ookami (ASX:OOK) share price is up 1,000% today, but don’t be fooled appeared first on The Motley Fool Australia.

More reading

• Australian Ethical (ASX:AEF) share price climbs on FUM update
• Boral (ASX:BLD) share price gains as Seven’s hold surpasses 50%
• Why isn’t the Digital Wine (ASX:DW8) share price trading today?
• What these 2 best performing ASX shares have in common….and what to expect next
• Why the Wellnex Life (ASX:WNX) share price is crashing 75% lower on Thursday

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.

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

The Australian Ethical Investment Limited (ASX: AEF) share price is bucking today’s general market weakness. Shares in the fund manager have remained relatively positive after it released an update earlier today.  

At the time of writing, Australian Ethical shares are trading 1% higher at $8.10. Let’s take a look at what the company announced and how it’s been performing.   

Australian Ethical grows funds under management

Earlier today, Australian Ethical provided the market with an update on its funds under management (FUM) for the quarter and full year.

The announcement was highlighted by a 56% increase in net flow of $1.03 billion for the full year ending 30 June 2021. Combined with strong investment performance, Australian Ethical’s FUM increased to $6.07 billion. 

Australian Ethical reported a 12% increase in quarterly FUM, equating to roughly $0.66 billion.

The company’s superannuation holdings accounted for the largest portion of its FUM, representing $5.41 billion.

In a previous update released in late May, Australian Ethical CEO John McMurdo cited the “unprecedented interest and demand for ethical investing” and that the company expects “this growth in ethical investing to accelerate”.

Australian Ethical share price snapshot

Australian Ethical is a funds management company that specialises in environmentally and socially responsible investing. Its business is divided into managed funds and superannuation funds.

The company’s managed funds segment provides investors with 8 different investment options. In addition, Australian Ethical’s superannuation business allows investors to build a retirement plan by investing in ethically sustainable businesses.

The Australian Ethical share price has had a stellar year thus far, surging by more than 60% since the start of 2021.

Shares in the fund manager were trading at all-time highs of almost $10 in late May. Since then, the Australian Ethical share price has sold off, falling by around 18% to its current level.

Part of these falls occurred after Australian Ethical provided updated earnings guidance for FY21.

The company advised investors it expected to deliver an underlying profit after tax before performance fees of between $8.8 million and $9.3 million for FY21.

Earlier this month, Australian Ethical announced that its Emerging Companies Fund outperformed its benchmark, the S&P ASX Industrials Index (ASX: XNJ) over the last 12 months.

The post Australian Ethical (ASX:AEF) share price climbs on FUM update appeared first on The Motley Fool Australia.

More reading

• Why do some ASX ETFs have dividend yields of 20% right now?
• ASX 200 up, Sydney Airport soars, Airtasker rises
• Why Australian Ethical, Clinuvel, Liontown Resources, & Tabcorp shares are dropping
• The Australian Ethical (ASX:AEF) share price lower despite positive earnings guidance

Motley Fool contributor Nikhil Gangaram owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

The Boral Limited (ASX: BLD) share price is climbing as Seven Group Holdings Ltd (ASX: SVW) gets tantalisingly close to winning its battle for control of the construction supplies company.

Right now, the Boral share price is trading at $7.38, 0.41% higher than its previous closing price.

At the same time, shares in Seven Group have boosted 2% higher to trade at $23.31.

While Seven Group doesn’t yet have full voting power, it now holds a majority stake in Boral.

Let’s take a closer look at today’s news in the battle for Boral.

Seven Group’s takeover comes to fruition

The Boral share price is lifting despite Seven Group being only a hair’s breadth away from gaining control of the company.

According to the announcement from Seven Group, it currently holds 52.65% of all of Boral’s outstanding shares.

But, in this case, that doesn’t give it majority voting power as 3.33% of Seven Group’s Boral shares are part of an equity swap transaction.

Therefore, it only holds 49.32% of Boral’s voting power.

As The Motley Fool reported yesterday, if Seven Group’s voting power in Boral surpasses 50%, the takeover bid will be extended for another fortnight.

It’s now a race against time for Seven Group to get a hold of an additional 0.68% of Boral’s outstanding shares before 7pm today when the takeover bid closes.

Seven Group is confident it will secure 50% of Boral’s voting power before the cut off. However, the pressure doesn’t seem to be damaging the Boral share price.

What next?

Seven Group has stated, if it wins control, it plans to retain a majority of independent directors on Boral’s board. In today’s release, it said:

Having a majority of independent directors has been an important feature of SGH’s corporate governance for many years, helping to drive value for the benefit of all SGH shareholders, and it looks forward to following the same approach for Boral.

According to reporting by the Australian Financial Review today, Seven Group will also request a number of changes.

These include creating additional board seats, speeding up Boral’s overhaul of its Australian business, and pushing for increased discipline in the company’s capital management.

The Australian has reported, if Seven Group wins control of Boral, it will instate its CEO Ryan Stokes as Boral’s chair, replacing Kathryn Fagg. Additionally, Seven Group’s chief financial officer Richard Richards will be put back onto Boral’s board.

Boral share price snapshot

This year has been a good one for the Boral share price. It has gained 48% year to date and is 95% higher than it was this time last year.

And Seven Group…

Despite pushing higher today, the Seven Group share price is still 2.7% lower than it was at the beginning of 2021.

However, it has gained 32% since this time last year.  

The post Boral (ASX:BLD) share price gains as Seven’s hold surpasses 50% appeared first on The Motley Fool Australia.

More reading

• Boral (ASX:BLD) share price falls as Seven’s hold nears 50%
• The Boral (ASX:BLD) share price is up 9% in a month. What’s next?
• These 3 ASX 200 shares were big movers this Monday
• Boral (ASX:BLD) share price slips as Seven Group’s stake surpasses 40%
• Here are 3 of the most traded ASX 200 shares 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.

from The Motley Fool Australia https://ift.tt/3hFpLF1

The S&P/ASX 200 Index (ASX: XJO) is having a bit of a topsy-turvy time during trading today. At the time of writing, the ASX 200 is down 0.18% to 7,341 points after playing jump rope with the break-even line all day so far. But the Digital Wine Ventures Ltd (ASX: DW8) share price isn’t joining in the game.

Digital Wine shares are currently sitting at 9.1 cents a share. That’s exactly where they ended up in yesterday’s afternoon trading. And that’s where they will be staying, at least for a while.

That’s because Digital Wine announced it had requested a trading halt for DW8 shares just before market open this morning.

Unfortunately, that’s pretty much all we know at this stage.

All the company said on the matter was the following:

Digital Wine Ventures Limited… requests an immediate trading halt over the company’s securities pending the release of an announcement in relation to a material acquisition and capital raising. The trading halt is requested until the earlier of commencement of trading on Monday, 19 July 2021, or the company releasing the announcement.

So it looks as though Digital Wine is undertaking an acquisition, which will be (either partly or fully) funded by a capital raising program. We will have to wait for more information from the company before we know much more.

About the Digital Wine share price

Digital Wine Ventures is an online-only retailer of alcoholic beverages, primarily wine (as its name suggests). While dabbling in bulk wine production and processing, its primary business is selling wine in the growing Asian wine market.

Last month, the company caused quite a stir of excitement when it announced it had formed a partnership with the e-commerce giant Amazon.com Inc (NASDAQ: AMZN).

This deal will involve Digital Wine using Amazon’s logistic and payments infrastructure and will enable wine suppliers to more easily enter the Australian marketplace. Investors reacted very positively to this news at the time.

At the current Digital Wine share price, the company has a market capitalisation of $149.9 million. Digital Wine shares are currently up 127.5% year to date, and a whopping 203% over the past 12 months. However, the Digital Wine share price is also down almost 50% since early April.

The post Why isn’t the Digital Wine (ASX:DW8) share price trading today? appeared first on The Motley Fool Australia.

More reading

• What these 2 best performing ASX shares have in common….and what to expect next
• Why the Wellnex Life (ASX:WNX) share price is crashing 75% lower on Thursday
• Why is the A2 Milk (ASX:A2M) share price down almost 3% on Thursday?
• Why the Rhythm Biosciences (ASX:RHY) share price is racing 6% higher
• The Whitehaven Coal (ASX:WHC) share price lifts after quarterly update

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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/3hDNs0g

Yesterday I penned an article detailing the 5-best performing ASX shares of the 2021 financial year (FY21). (You can find that here.)

To avoid the potential distortions from the high volatility often experienced with microcap stocks, I limited the scope to ASX shares trading on the All Ordinaries Index (ASX: XAO). The All Ords contains the 500 largest companies by market cap.

For reference, the All Ords gained 25% in FY21, which ran from 1 July 2020 through to 30 June 2021.

What these 2 best ASX shares have in common

Today I’d like to draw your attention back to 2 of those ASX shares. Namely Vulcan Energy Resources Ltd (ASX: VUL) and Piedmont Lithium Inc (ASX: PLL).

Over the course of FY21, Vulcan Energy saw its share price fly 1,275% higher. That made Vulcan Energy the number 1 best performing ASX share on the All Ords.

Piedmont Lithium, the fourth best ASX share to own during the financial year gone by, soared 1,033%.

And remember, the benchmark we’re holding them up to gained ‘only’ 25% over that same time.

So, what do both of these ASX shares have in common?

The answer lies in Piedmont’s name.

Yep, lithium.

Vulcan Energy is working to become a major supplier of lithium to power the booming European electric vehicle (EV) markets. Already a growth market, the European Union has just signalled its intent to ban new combustion engine vehicles by 2035, meaning EVs are likely to dominate.

Piedmont Lithium is more focused on the huge opportunities presented by the United States’ changing energy needs. Both with EVs and grid storage batteries. Piedmont’s Carolina Lithium project is forecast to become one of the biggest, lowest-cost producers of lithium hydroxide in the world.

That’s the year gone by.

But what next for ASX lithium shares?

What next for lithium shares?

With the world increasingly intent on decarbonising our energy sources, analysts are broadly bullish on the outlook for lithium prices. And higher prices will offer a healthy tailwind for ASX shares involved in exploring for and producing lithium.

For example, Credit Suisse research analyst Matthew Hope said (quoted by the Australian Financial Review):

Lithium prices have risen sharply since February and we do not believe it is temporary. The lithium supply glut has ended and the market is now tightening as the electric vehicle revolution accelerates, [meaning] supply will need to stretch to meet demand…

The mines and salt lakes currently producing, together with those under construction, and idle operations that can be restarted, are insufficient to meet demand and will see growing deficits.

James Stewart, co-portfolio manager of Ausbil’s global resources fund, is also bullish on lithium prices:

What was a concept story a few years ago, is all of a sudden real now. Over the next six to 12 months, in particular, we can’t see significant lithium volume coming online to meet the phenomenal demand for electric vehicles we’re seeing across Europe, China and the US.

This should come as welcome news to ASX shares working on recycling and digging up lithium.

The post What these 2 best performing ASX shares have in common….and what to expect next appeared first on The Motley Fool Australia.

More reading

• The 5 best ASX shares of FY21 revealed
• ASX lithium shares are surging on Tuesday. Here’s why
• Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher
• Why the Vulcan Energy (ASX:VUL) share price is surging higher today
• These 5 ASX lithium shares energised investor portfolios in FY21

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/3kgrS3P

The Wattle Health Australia Ltd (ASX: WHA) share price has returned to the ASX boards this morning under both a new name and ticker code after over 18 months in suspension.

Wattle Health is now known as Wellnex Life Limited (ASX: WNX) and returns to trade after the ASX provided conditional approval for the reinstatement of its securities.

Unsurprisingly, after such a long time in suspension, investors have been finally able to offload shares this morning at long last.

This has led to the Wellnex Life share price crashing to 12.5 cents. This is down 75% from its pre-suspension share price of 50.1 cents.

What’s changed?

Wellnex Life calls itself an Australian brand and distribution company of customer-focused health and wellness products. It was established when Wattle Health acquired the Brand Solutions Australia and Pharma Solutions Australia businesses.

Management notes that the combined company is now on a mission to deliver health, wellness and vitality solutions to consumers worldwide.

These acquisitions mean the company has an existing portfolio of consumer brands already in stores and on shelves and a pipeline of new brands that are ready-to-ship. These include Uganic nutritional milk, Iron Gummies, Little Innoscents skincase, Simply7 Lentil Chips, Wagner Ibuprofen and paracetamol, and Wakey Wakey energy gummies.

Management also highlights that it has ~$20 million in annualised revenue and a 10-year agreement with Chemist Warehouse.

Wellnex Life is targeting the Australia vitamin and dietary supplements market, which is currently worth an estimated $3.1 billion. It also has plans to expand into the $1.3 billion sports nutrition segment in the future.

Though, it is worth remembering from its lack of success in the infant formula market, that just having a large market opportunity doesn’t guarantee sales. For example, prior to the rebrand and acquisition, Wattle Health recorded cash receipts of just $0.5 million during the third quarter of FY 2021.

Wellnex Life returns to the ASX board today with a total of 321,730,670 shares outstanding. Based on the current Wellnex Life share price, this gives it a market capitalisation of $40.2 million.

The post Why the Wellnex Life (ASX:WNX) share price is crashing 75% lower on Thursday appeared first on The Motley Fool Australia.

More reading

• Why is the A2 Milk (ASX:A2M) share price down almost 3% on Thursday?
• Here’s why the A2 Milk (ASX:A2M) share price is down 64% in 12 months
• A2 Milk and Zip were among the most traded ASX shares last week
• These are the 10 most shorted shares on the ASX
• A2 Milk (ASX:A2M) share price in focus following update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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/3iac8wn