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The S&P/ASX 200 Index (ASX: XJO) is having a rather shaky start to trading this Thursday. At the time of writing, the ASX 200 is down 0.099% to 7,347 points. One ASX share that is faring worse today though is A2 Milk Company Ltd (ASX: A2M).

A2 Milk shares are currently down a nasty 2.52% so far today to $6.95 a share. This fall continues a trend we have seen playing out all week. Since Monday morning, A2 shares are now down near 4%, somewhat reversing the recent recovery in A2 Milk shares.

Remember, this is an ASX 200 share that has had a very rough 12 months or so. The A2 Milk share price is still down more than 40% year to date, and almost 65% down over the past year. A series of earnings downgrades, largely sparked by a collapse in the Chinese-driven daigou trade, are largely to blame here.

In saying that, we have also seen some strong signs of life in recent months too. Back in mid-May, A2 Milk shares bottomed out at a new multi-year low of just $5.04 a share. Since then, the company is now up an impressive 35%, even after today’s fall.

But let’s get back to why the A2 Milk share price is under pressure today. What’s going on?

Why is the A2 Milk share price under pressure today?

Well, the first thing to note is that there are no official news or announcements out of the company today that can easily explain this fall.

But we are seeing a number of ASX shares today that are falling by more than the ASX 200 itself. Although it might not seem like it after the year A2 has had, this company used to be thought of as a high-flying ASX growth share.

As such, it might be reacting alongside other ASX growth shares to a sharp sell-off over in the US markets last night. Yesterday’s session on the US markets saw shares like Tesla Inc (NASDAQ: TSLA), Nio Inc. (NYSE: NIO) and GameStop Corp. (NYSE: GME) sell off heavily, all losing more than 2% (nearly 7% in GameStop’s case).

Today on the ASX, not only is A2 Milk falling, but we also see similar moves from growth shares like Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P) and Bubs Australia Ltd (ASX: BUB). Perhaps the A2 Milk share price is just being caught up in a sell off in the ‘growth shares region’ of the market.

Whatever the reason, it’s certainly been an interesting day for A2 Milk shares so far. At the current A2 Milk Company share price, the company has a market capitalisation of $5.3 billion.

The post Why is the A2 Milk (ASX:A2M) share price down almost 3% on Thursday? appeared first on The Motley Fool Australia.

More reading

• 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
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat

Motley Fool contributor Sebastian Bowen owns shares of Tesla and A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, NIO Inc., Tesla, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Rhythm Biosciences Ltd (ASX: RHY) share price has been a strong performer on Thursday.

In afternoon trade, the early cancer detection-focused predictive diagnostics company’s shares are up 6% to 90 cents.

This latest gain means the Rhythm Biosciences share price is now up over 1,000% during the last 12 months.

Why is the Rhythm Biosciences share price charging higher today?

The catalyst for the rise in the Rhythm Biosciences share price on Thursday has been the release of an update on its US expansion strategy.

According to the release, the company has established a wholly owned US domiciled entity, IchorDX, as part of its US market entry plan. Management notes that this will enable Rhythm to pursue its international expansion activities for ColoSTAT in one of its largest priority markets.

ColoSTAT is the company’s lead product and intended to be a simple, affordable, minimally invasive and effective blood test for the early detection of bowel cancer.

The release highlights that the US market represents one of the largest diagnostic markets in the world, with a current addressable market of over 94 million people. It also sees scope for this number to grow in the short term by a further 21%. This follows the US Preventative Services Task Force’s recommendation that the colorectal cancer screening age be reduced from 50 to 45 years of age.

In light of this, it isn’t hard to see why the Rhythm Biosciences share price is on the rise again today.

Rhythm’s CEO, Glenn Gilbert, commented: “The establishment of IchorDX, Inc., in the US demonstrates our commitment to accelerate our international expansion plans, offer additional optionality to our corporate structure and aim to create a global footprint for Rhythm’s transformative cancer detection technology.”

“The reality is that the global need for a simple and accurate mass screening blood test for colorectal cancer is growing. This first step to enter the US market moves Rhythm closer to meeting this need,” he added.

The post Why the Rhythm Biosciences (ASX:RHY) share price is racing 6% higher appeared first on The Motley Fool Australia.

More reading

• Why the Rhythm (ASX:RHY) share price is climbing 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.

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The Whitehaven Coal Ltd (ASX: WHC) share price is in the green today after the company released its quarterly report this morning.

Currently Whitehaven shares are exchanging hands for $2.04 a piece, 3.03% up on the day.

Let’s take a closer look at the Australian coal miner’s results in closer detail.

Whitehaven’s share price jumps despite output setbacks

Whitehaven shares lifted after the earnings release, despite reporting its fourth-quarter saleable coal production had reduced by 39%.

Today’s results also exhibit a 7% decline in saleable coal production from the same time last year, coming in at 3.8 million tonnes (Mt).

The company also detailed that run-of-mine coal output was 20.56 Mt, flat to 20.60 Mt 12 months ago.

Explaining the results, Whitehaven claimed it had faced challenges at its Narrabri mine in New South Wales this year. It stated the Narrabri operation has been undergoing longwall equipment repairs due to the surrounding environment.

The company has experienced unscheduled downtime as a result of the repairs, hurting overall production.

Whitehaven managing directory and chief executive Paul Flynn said in the report:

Unfortunately difficult geological conditions persisted at Narrabri through the second half and, having now navigated through this area, we are focused on finishing the balance of the panel expeditiously and getting to the change out scheduled for Q2 of FY22.

Surging coal prices

Although coal prices hit new highs of US$135 per tonne this week, in its report, Whitehaven stated it had received a discounted price of US$94 a tonne.

Nonetheless, the company is adamant it will realise the benefits of these price hikes later on in the year.

Speaking on this topic, Flynn mentions in the report:

Prices for high-CV thermal are at 10-year highs, and we will begin to see this materialise into strong free cash flow over the coming months.

Whitehaven share price snapshot

The Whitehaven share price has climbed 23% this year to date, extending the last 12 month’s gain of 35%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of 11% this year and 21% over the last year.

At the time of writing, Whitehaven has a market capitalisation of $2 billion.

The post The Whitehaven Coal (ASX:WHC) share price lifts after quarterly update appeared first on The Motley Fool Australia.

More reading

• The 3 ASX shares that top brokers just upgraded to “buy”
• Why the Whitehaven (ASX:WHC) share price is climbing today
• These were the best performing ASX 200 shares in June
• Woodside among ASX energy shares claiming financiers are pulling the pin
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5

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

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The Dacian Gold Ltd (ASX: DCN) share price has tumbled today after the company released its June quarter and FY21 activities report.

Earlier, the Dacian Gold share price was down 8%. At the time of writing, shares in the gold producer and explorer have recovered slightly but are still down 4.84% to 30 cents.

Why the Dacian Gold share price is sliding

The Dacian Gold share price has been pushed lower this morning as investors respond to its quarterly activities report.

At the time of writing, approximately 7 million shares have traded hands. To add some perspective, its 10 day average volume is approximately 2.5 million.

According to the release, Dacian Gold produced 25,558 oz of gold in the June quarter, at an all in sustaining cost (AISC) of $1,742/oz.

The company’s total FY21 production came in at 106,919 oz at an AISC of $1,552/oz.

The Dacian Gold share price might be responding negatively to the fact that these operational figures missed the company’s full year guidance of 110,000 to 120,000 oz at an AISC of $1,400 to $1,550/oz.

Looking ahead

Dacian Gold is targeting FY22 production guidance of 100,000 to 110,000 oz at an ASIC of $1,550 to $1,700/oz.

The company said that it is “embarking on a significant growth investment … for the long term”, allocating $20.4 million to exploration and $66.5 million to project development.

According to the announcement, an update regarding life-of-mine for Mt Morgans and the Redcliffe project is on track for release later in the September quarter.

What did management say?

Dacian Gold Managing Director, Leigh Junk commented on the result, saying:

Whilst we delivered a robust production result for FY2021, we did fall slightly short of our planned target for the quarter. Dacian has had a significant year nonetheless with the acquisition of Redcliffe, further reductions in our debt and hedge positions, completion of over 160,000 m of exploration and resource definition drilling and re-positioning our exploration strategy towards making the next generation of discoveries, all contributing to our growth-focused endeavors ahead in FY2022.

We are keen to soon reintroduce high-grade ore from the Westralia mine area into our production profile and are busy working towards developing the Redcliffe project into production. Our upcoming life-of-mine plan will be the Company’s first opportunity to bring all these projects into a base case mine plan for our Laverton operations and we look forward to completing that work this quarter.

About the Dacian Gold share price

The Dacian Gold share price has tumbled 36% year-to-date, hitting a 2-year low of 25.5 cents on 30 June.

However, it isn’t just Dacian Gold that’s struggling.

Household ASX gold shares such as Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN) have also slumped this year, down 19% and 7.2% this year.

The post Dacian Gold (ASX:DCN) share price down 8% on quarterly activities report appeared first on The Motley Fool Australia.

More reading

• Why the PolyNovo (ASX:PNV) share price is sinking 6% lower on Thursday
• The ASX 200 is trading near record highs – time to worry about popping bubbles?
• Why is the SelfWealth (ASX:SWF) share price frozen today?
• ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher
• Spark Infrastructure (ASX:SKI) share price rallies 7% on confirmed bid

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

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The Polynovo Ltd (ASX: PNV) share price has been the worst performer on the S&P/ASX 200 Index (ASX: XJO) on Thursday.

At the time of writing, the medical device company’s shares are down 6% to $2.16.

This leaves the PolyNovo share price trading within sight of its 52-week low of $1.98.

Why is the PolyNovo share price is tumbling?

Investors have been selling down the PolyNovo share price after analysts at Bell Potter responded negatively to yesterday’s sales update.

According to the note, the broker has held firm with its hold rating but cut its price target down to $2.65.

Bell Potter made the move after the company’s sales update fell short of its expectations. PolyNovo reported product revenue growth of 34% in FY 2021 to ~$25.6 million, whereas Bell Potter was expecting $29.1 million.

What did Bell Potter say?

Bell Potter notes that PolyNovo has now fallen short of expectations for two consecutive halves.

It commented: “Today’s announcement came as a 13% miss vs our expectations—we expected COVID recovery tailwinds would make an impact on sales in the 2H. Although we view the quantum of sales growth as positive and acceptable, much loftier market expectations have not been met this and last half, which has contributed to recent downward pressure on the stock.”

In light of this, the broker has revised its revenue forecasts lower and adjusted its target on the PolyNovo share price accordingly.

The broker concluded: “Maintaining our HOLD rating with a reduced price target of $2.65/sh (from $2.75/share) on reduced FY22-24 revenue forecasts. PNV continues to trade at a significant premium to domestic and international wound care and MedTech peers.”

Bell Potter suggests that investors wait for PolyNovo’s “full year result in late August for additional detail, especially around new account additions, momentum with group purchasing organizations, and audited revenue figures.”

The post Why the PolyNovo (ASX:PNV) share price is sinking 6% lower on Thursday appeared first on The Motley Fool Australia.

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• PolyNovo (ASX:PNV) share price jumps 8% on strong 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. owns shares of and has recommended POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is edging higher in morning trade, up 0.1%

At 7,363 points, the ASX 200 is only 0.3% off its all-time highs of 7,386. It reached that peak just last month on 16 June.

What’s even more noteworthy in the case of the ASX 200 – and indeed most major global indexes – is that just 16 months ago, it had crashed hard in the initial panic selling as COVID-19 morphed into a pandemic.

In a single month, from 21 February through to 20 March 2020, the ASX 200 plummeted 33% to bottom out at 4,817 points.

A bit of back of the napkin maths tells us the index rocketed more than 53% from that low to the 16 June 2021 high. Its fastest growth in history.

Is the ASX 200 in bubble territory?

New record highs are noteworthy achievements. They’re usually greeted with celebration, unless you’re short the market. Yet new records also tend to stir investor anxiety.

How high is too high? Can the bull run really keep going?

These types of questions can keep investors up at night. And depending on their conclusions, can lead to rash and potentially costly decisions.

With that in mind, we look at the recent global share market crash prediction from legendary investor Michael Burry. Along with some moderating insights from Josh Gilbert, market analyst at global multi-asset investment platform eToro.

The greatest speculative bubble of all time?

Burry, if you’re not familiar, gained recognition in the financial circles after he spotted issues with subprime lending in the United States housing market in the mid-2000s. Issues that would lead to the global financial meltdown in 2008. He took up short positions and, eventually, made a fortune for himself and his clients.

Burry really became famous after the blockbuster movie The Big Short – he was portrayed by Christian Bale – hit the screens in late 2015. Or early 2016 Down Under.

In his most recent bubble prediction (he’s made a few) Burry tweeted, “People always ask me what is going on in the markets. It is simple. Greatest Speculative Bubble of All Time in All Things. By two orders of magnitude.”

Notably, Burry posted the tweet on 15 June, 1 day before the ASX 200 hit its current record high.

So, are global markets in a speculative bubble? One where investors have been drawn in chasing high returns in a low interest rate environment, and paying more for shares than they’re fundamentally worth?

eToro’s Josh Gilbert told the Motley Fool that indeed, “Over the past 18 months, more retail investors have entered the market than ever before.”

With share markets around the globe at or near record highs, many of these investors are buying shares for the first time, driven by the age-old fear of missing out (FOMO).

But when asked if he believes we’re facing the biggest bubble in history, Gilbert replied, “At the moment, I’d say no.”

He continued:

Yes, valuations are high in specific sectors, but this is supported by solid earnings growth, where we continue to see revenues climb. As these fundamentals improve, the bubble theory, therefore, becomes less apparent. Moreover, earnings growth is continuing, and in many companies’ Q2 earnings of 2021, we expect to see a 65% year-over-year increase.

Gilbert points to investor excitement with all thing tech as having driven markets in bubble directions earlier this year:

As tech assets boomed at the start of 2021, it felt as if we were potentially heading towards bubble territory. Stocks such as Tesla [Tesla Inc (NASDAQ: TSLA)] and Nio [Nio Inc (NYSE: NIO)] saw their share prices soar as the euphoria around growth stocks rippled through the market. During this time, both assets’ share prices were increasing at a rate that earnings couldn’t match.

But it looks like a bursting bubble scenario may have been averted. “Since this period, we have seen growth in the tech sector slow down substantially, as investors have rotated towards cyclical equities,” Gilbert told us.

He added that, “There are many assets in the market that are still currently undervalued, such as the financial sector.”

Similar activity on the ASX 200

We’ve seen much the same thing play out on the ASX 200.

While tech shares led the recovery rally in 2020, they’ve been lagging the broader index this year.

The ASX 200 has gained 10% so far in 2021. By comparison the S&P/ASX All Technology Index (ASX: XTX) – which tracks 50 of Australia’s leading technology shares – is down 1% year-to-date.

As one example, tech darling and BNPL share Afterpay Ltd (ASX: APT) gained 290% during the 2020 calendar year, including the meltdown month. In 2021, however, the Afterpay share price is down 12%.

Turning to the financial sector, which Gilbert says remains undervalued, Commonwealth Bank of Australia (ASX: CBA) gained only 2% in 2020. As for 2021, the CBA share price is up 18%.

What now for global share markets and the ASX 200?

Looking ahead, Gilbert said:

This year, it’s appearing likely that the S&P 500 will hit its third year of straight gains, a rare achievement that has only been experienced twice since the 1970s. In the second half of this year, it’s plausible to see lower returns, given how strong the markets have been to date. Volatility is also expected to increase, with the VIX currently trading at pre-pandemic lows and the Federal Reserve pondering over its tapering decision.

Gilbert left off with this valuable piece general advice, “For investors still worried about a market bubble, it’s crucial that they diversify their portfolios in order to protect themselves from any potential losses.”

In other words, don’t put all your eggs in 1 basket.

Happy investing!

The post The ASX 200 is trading near record highs – time to worry about popping bubbles? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher
• Canva valuation beats out Afterpay (ASX:APT), what’s next?
• Why Tesla stock dropped — again!
• CBA (ASX:CBA) share price outperformed Westpac over the past 3 months
• The Afterpay share price just had its worst day since February 2021. Here’s why

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, NIO Inc., and Tesla. 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.

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The SelfWealth Ltd (ASX: SWF) share price won’t be going anywhere today after the company requested a trading halt.

SelfWealth shares will be halted after the company said it was finalising arrangements for a potential capital raise.

The online broker anticipates the halt will end by Monday, 19 July.

What did SelfWealth announce?

According to the release, SelfWealth will look to raise up to approximately $10 million at an issue price of 39 cents per new share.

Additionally, the company will offer a share purchase plan to eligible existing shareholders to raise a further $2 million.

The proceeds will be used for accelerating investment in its growth strategy to drive new revenue streams and increase market share.

The company highlighted initiatives including “broadening the product offering to include cryptocurrency, investing in the user experience and high-demand features (including instant payments), pursuing a more aggressive marketing strategy, implementing a robust data and analytics strategy and additional headcount to support mobilisation@.

SelfWealth reveals technology and product roadmap

Om Monday, the SelfWealth share price took an 11.96% tumble to 40.5 cents after the release of its fourth-quarter results.

However, the company did reveal a number of upcoming product and technology plans.

In the June quarter, SelfWealth introduced a feature which allows members to invest on behalf of those under 18. The launch of minors’ accounts during the quarter has been “very positive”. The company observed “members typically (invest) in long-term investment choices such as ETFs”.

The company said it was negotiating with several cryptocurrency exchanges to add that investment option to the platform.

SelfWealth plans to be the “first investment platform to offer CHESS-sponsored share trading on the ASX, US trading and cryptocurrency access to Australian investors”.

Additionally, the company said it was on track to roll out a new cryptocurrency product in Q2 FY22.

SelfWealth successfully launched its US trading functionality in December 2020. The company’s fourth-quarter results said the “number of active traders trading US equities continues to grow, evidenced by a penetration rate of 29% in the existing customer base”.

Furthermore, SelfWealth has plans to introduce additional international markets, including Hong Kong, in Q2 FY22.

About the SelfWealth share price

SelfWealth was a top performing stock in 2020, rallying 232% from 17 cents to 56.5 cents.

The SelfWealth share price has struggled to keep the momentum going in 2021, tumbling 21.8% year-to-date to 43 cents.

The post Why is the SelfWealth (ASX:SWF) share price frozen today? appeared first on The Motley Fool Australia.

More reading

• SelfWealth (ASX:SWF) share price dives 11% after fourth quarter results

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

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is having a bit of a mixed time. The benchmark index is currently flat at 7,357.8 points.

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

Afterpay and Zip continue to slide

The Afterpay Ltd (ASX: APT) share price and the Zip Co Ltd (ASX: Z1P) share price have continued to slide on Thursday. Investors have been selling the shares of the buy now pay later (BNPL) providers due to speculation that tech giant Apple is planning to enter the BNPL market. While it has not commented on the speculation, Apple is understood to be planning to launch Apple Pay Later in an effort to boost Apple Pay transactions.

ARB update impresses

The ARB Corporation Limited (ASX: ARB) share price is surging higher on Thursday after investors responded positively to its market update. According to the release, the 4×4 parts manufacturer achieved a 33.9% increase in unaudited sales revenue to $623 million in FY 2021. And on the bottom line, it 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.

Sydney Airport rejects takeover approach

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is edging higher today despite formally rejecting the takeover offer from a consortium of infrastructure investors. The Sydney Airport board believes the offer “undervalues Sydney Airport and is not in the best interests of Securityholders.” It also notes that the offer is “opportunistic” and is taking advantage of the COVID-19 pandemic.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the ARB share price with a gain of 8%. This follows the release of an update after the market close yesterday. The worst performer on the ASX 200 today has been the Polynovo Ltd (ASX: PNV) share price with a 5.5% decline. This morning Bell Potter retained its hold rating and cut its price target by 3.6% to $2.65 after the medical device company’s sales update fell short of its expectations.

The post ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher appeared first on The Motley Fool Australia.

More reading

• Canva valuation beats out Afterpay (ASX:APT), what’s next?
• 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
• The Zip (ASX:Z1P) share price just had its worst day since 17 February. 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. owns shares of and has recommended AFTERPAY T FPO, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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.

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The Spark Infrastructure Group (ASX: SKI) share price is climbing higher today. This comes after the energy network operator confirmed it had received a takeover bid. Shares in the company have resumed trading following the announcement.

At the time of writing, the Spark Infrastructure share price is trading hands for $2.65 – up 6.85%.

Let’s take a look at the news driving the company’s shares higher today.

Takeover proposal switches on Spark Infrastructure’s share price

Investors are buying up shares in the energy network operator today following its latest announcement.

After having entered a trading halt yesterday amid rumours of a potential buyout offer, Spark has cleared the air. According to the release, it had received a conditional and non-binding indicative proposal from Ontario Teachers’ Pension Plan Board (OTPP) and Kohlberg Kravis Roberts & Co (KKR).

The proposal from the consortium sought to acquire 100% of the company’s shares by way of a scheme for all cash consideration at $2.70 per share. Additionally, the offer would be reduced by the value of the proposed dividend of 6.25 cents per security. As a result, the final consideration valued each share at $2.6375.

All things considered, the board unanimously determined the offer undervalued Spark Infrastructure and its share price. Following this, the consortium made a subsequent offer of $2.80 – once again reduced by the dividend payment.

Spark Infrastructure $SKI has rejected a $2.80 per stapled security all-cash takeover offer made by KKR and the Ontario Teachers' Pension Plan Board. $SKI's Board '…unanimously concluded that the price undervalued' the company.

— CommSec (@CommSec) July 15, 2021

https://platform.twitter.com/widgets.js

And once again, the company concluded the follow-up offer undervalued Spark. Although access to due diligence has been withheld, the board indicated it was willing to share limited information regarding the business and its prospects.

Spark Infrastructure concluded its announcement by stating:

Irrespective of whether the engagement between Spark Infrastructure and the Consortium results in further revised proposals, the Board considers that Spark Infrastructure has a highly attractive future and is well positioned to continue to deliver an attractive yield now with franking credits coupled with strong growth in its underlying high-quality asset base and has strong ESG credentials given its important role in supporting the multi-decade energy transition to a lower carbon future.

Renewable energy hub development announced

The company took the opportunity to announce its new renewable energy hub proposal in a separate update.

According to the update, Spark plans to develop a generation and storage hub in South-West New South Wales. This facility, dubbed the Dinawan Energy Hub, is intended to have up to 2.5 gigawatts of capacity.

Additionally, the hub will consist of hybrid wind, solar, and battery storage. The proposed location is situated on the route of the EnergyConnect interconnector. This will run between Wagga Wagga in NSW and Robertstown in South Australia.

Furthermore, Spark noted it would be strategically positioned to the Snowy Hydro 2.0 and KerangLink interconnectors.

Commenting on the proposed development, Head of Spark Renewables, Anthony Marriner said:

We are only at the start of the development process and the proposed project must undergo a rigorous planning and assessment process which includes environmental studies. We are also committed to extensive community and stakeholder consultation to identify the possible environmental, economic and social impacts, as well as opportunities and mitigation measures.

Following the surge in the Spark Infrastructure share price, the company now holds a market capitalisation of $4.77 billion

The post Spark Infrastructure (ASX:SKI) share price rallies 7% on confirmed bid appeared first on The Motley Fool Australia.

More reading

• Spark Infrastructure (ASX:SKI) share price frozen on possible takeover bid
• How did ASX renewable energy shares perform in FY21?
• A dividend bonanza could be inbound for ASX shares, here’s why

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

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The Actinogen Medical Ltd (ASX: ACW) share price is soaring today after the company announced news of its XanaMIA trial.

According to the release, the first patient has been enrolled in Part A of XanaMIA’s 2-part trial. The trial targets patients with mild cognitive impairment due to Alzheimer’s Disease.

At the time of writing, Actinogen shares are swapping hands for 15 cents – that’s 13.04% higher than their previous closing price.

Let’s take a closer look at today’s news from the biotechnology company.

The latest from Actinogen

Today, Actinogen announced the first of 105 Australian volunteers has signed up to be involved in part A of XanaMIA’s trial.

The news has sent the Actinogen share price rocketing upwards.

The first stage of the trial is a dosing study that will determine if it’s safest and more effective to treat patients with either 5mg or 10mg doses of XanaMIA.

Additionally, participants will be tested for improvements to their memory and cognitive abilities.

Part A of the XanaMIA trial will take place over 6 weeks. The first stage will include participants aged between 50 and 80 years old. It will take place at 4 Australian outpatient sites.

If the dosing study is successful, the resulting dosage of XanaMIA will be used in Part B of the drug’s trial.

Part B will assess the efficacy of XanaMIA in patients with bio-market positive Alzheimer’s Disease. It will be testing the effects of XanaMIA on biomarkers indicative of Alzheimer’s Disease.

In addition, Part B will assess if XanMIA can aid the cognitive function of those with underlying Alzheimer’s Disease.

The trial received the approval of an ethics committee on 2 June, sending the Actinogen share price soaring 18% higher.

Actinogen share price snapshot

This year has been a good one so far for Actinogen shares, having gained more than 500% year to date.

The biotechnology company has a market capitalisation of around $190 million, with approximately 1.6 billion shares outstanding.  

The post Here’s why the Actinogen (ASX:ACW) share price is rocketing 13% today appeared first on The Motley Fool Australia.

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

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

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