Tag: Motley Fool

CSL shares have had an up-and-down start to the year. Shares in the Aussie biotech company are down 1.9% year-to-date and closed at $279.52 per share on Tuesday.

Despite falling 8% in the last month, CSL still boasts a $127.2 billion market capitalisation. That makes it one of the largest shares in the S&P/ASX 200 Index (ASX: XJO) and a perennial index mover and shaker.

But one leading fundie doesn’t have a great outlook for CSL shares in 2021. Yarra Capital Management recently released a May 2021 investment and portfolio update for its Yarra Australian Equities Fund and CSL was notably “underweight”.

Why one leading fundie isn’t bullish on CSL shares

CSL was noted as one of the key detractors to portfolio performance in the fund’s most recent update. That’s despite Yarra Capital noting that CSL outperformed as many expected the company to benefit from a re-opening of the US economy.

Foot traffic at CSL’s collection centres reportedly increased in recent weeks but that hasn’t changed Yarra Capital’s position. The fund remains underweight the Aussie biotech share, based on its forward valuations.

According to the update, CSL shares are trading at a 44.2 times price to earnings (P/E) ratio and 29.7 times enterprise value to earnings before interest, tax, depreciation and amortisation (EV/EBITDA) multiples on a forward basis. In the fund’s view, this relative valuation captures its earnings outlook for CSL right now.

However, Yarra did note the growth outlook for CSL’s key plasma products remains “robust”. Although it doesn’t look like it’ll be snapping up more CSL shares anytime soon.

Foolish takeaway

CSL shares have been under pressure in the last month or so. Shares in the Aussie biotech have slumped while the benchmark ASX 200 index has edged 0.6% lower.

While investors hope for a change in fortunes for the Aussie biotech’s valuation, the Yarra Australia Equities Fund looks content to avoid CSL for the time being.

The post This fundie is underweight CSL (ASX: CSL) shares. Here’s why. appeared first on The Motley Fool Australia.

More reading

• Why the CSL (ASX:CSL) share price has trailed the ASX 200 by 23% in the last year
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 flat, Select Harvest jumps, Nearmap soars
• Ansarda (ASX:AND) share price surges on record quarter
• Here are 3 ASX 200 shares flying around the markets today

Motley Fool contributor Ken Hall 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.

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The Sandfire Resources Ltd (ASX: SFR) share price is on the move in morning trade.

At the time of writing, the copper producer’s shares are up 3% to $6.90.

Why is the Sandfire share price charging higher?

Investors have been bidding the Sandfire share price higher this morning following the release of an update on its performance in FY 2021.

According to the release, Sandfire has exceeded its annual copper production guidance for the 12 months to 30 June 2021.

The miner produced 70,845 tonnes of contained copper and 39,459 ounces of contained gold with a C1 unit operating cost of US$0.81 per pound of payable copper. This compares to its production guidance range of 67,000 tonnes to 70,000 tonnes and operating cost guidance of US$0.80 to $0.85 per pound.

A key driver of this outperformance was its strong finish to the year. During the fourth quarter, Sandfire achieved production of 18,252 tonnes of contained copper and 9,016 ounces of contained gold. This was achieved with a C1 unit operating cost of US$0.92 per pound of payable copper.

Management advised that this reflects another strong and consistent performance by the DeGrussa Operations in Western Australia. It notes that DeGrussa copper and gold production was above the upper end of its previously announced production guidance and its costs were at the low end of its guidance range for FY 2021.

This ultimately led to Sandfire recording a 24% increase in sales revenue in FY 2021 to $813 million.

Management commentary

Also giving the Sandfire share price a boost was management’s positive commentary about FY 2021 and the future.

Sandfire’s Managing Director, Karl Simich, commented: “DeGrussa is a wonderful asset, which has delivered safe, consistent and profitable production across nearly 10 years of operations. The 2021 Financial Year has maintained this enviable record, with copper production exceeding guidance at 70,845 tonnes and our C1 unit costs remaining exceptionally low at US$0.81 per pound.”

“Importantly, our ability to harvest significant cash from the DeGrussa Operations has put Sandfire in an outstanding position for the future, giving us significant flexibility and optionality in terms of financing our future growth initiatives,” Mr Simich added.

He explained: “The most important of these in the short term is our exciting new Motheo Copper Mine in Botswana, where we secured the all-important Mining Licence award last week. This clears the way for full-scale construction to ramp up and ensures that we can maintain our development timeline of delivering first copper production in early 2023.”

Following today’s gain, the Sandfire share price is now up 27% in 2021.

The post Sandfire (ASX:SFR) share price charges higher after beating FY21 guidance appeared first on The Motley Fool Australia.

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• 29Metals (ASX:29M) slips on biggest ASX mining debut in a decade
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• ASX copper shares down after the commodity’s price falls 4%

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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Some sports betting companies have been growing rapidly in recent years as the industry scrambles for a piece of the newly opened US market.

Gambling on sports was, for a long time, illegal in most states in the US. But, in recent years, many states have legalised the activity, sending both local and Australian bookmakers into a frenzy.

One that made its debut on the ASX just this month is Bluebet Holdings Ltd (ASX: BBT).

So how does the upstart compare to a veteran sports betting provider like Pointsbet Holdings Ltd (ASX: PBH)?

BlueBet has returned 44% in 2 weeks

According to Shaw and Partners portfolio manager James Gerrish, after only a couple of weeks, BlueBet has easily surpassed its initial public offer share price.

“BlueBet Holdings has been on a roller-coaster ride since its recent ASX debut but it’s well above the $1.14 where the company raised $80 million,” he said in his Market Matters newsletter.

“The company now has a market cap of $338m and… has flagged its intention to expand into the US which is becoming a well-trodden path thanks to a change in legislation.”

BlueBet shares closed Tuesday at $1.64, which is 44% up from its IPO price.

The big question now is whether such positive returns are sustainable.

Gerrish reminded his subscribers that with the current land-grab in the US, sports betting providers should not be judged on profitability just yet.

“Companies like this are all about gaining market share quickly, and Bluebet certainly has the leadership in place who know how to do that,” he said.

“At current levels, we regard Bluebet as a stock to watch but we would like to see some progress on their plans before jumping onboard.”

As a contrast, he feels like Pointsbet has more runs on the board for investors.

“Pointsbet have demonstrated the ability to do very unique deals that will lead to huge scale in the US. They’ve really aggressively gone for it which will pay off in spades if they execute well,” said Gerrish.

“For now our preference is Pointsbet.”

Pointsbet shares have returned a stunning 513.5% since its ASX listing in June 2019. The stock closed Tuesday at $12.70, which is 7.45% up on the year.

Gerrish’s team holds Pointsbet in their Emerging Companies portfolio.

The post Is BlueBet or Pointsbet the better bet right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Insurance Australia Group Ltd (ASX: IAG) share price has been struggling this year. Since the beginning of 2021, the insurance company’s shares have been range-bound between $4.56 and $5.35.

The last week has been no exception, with the IAG share price bouncing between $4.84 and $5.00 apiece.

While investors can take solace in the company’s shares being in the positive year-to-date (YTD), it doesn’t make the last month or so much easier. In that time, the IAG share price has slipped ~5%.

Let’s revisit Australia and New Zealand’s largest general insurance provider and see where the downward pressure is coming from.

Why the IAG share price is under pressure?

As previously reported by my fellow Fool, Nikhil, the latest news from IAG is the finalisation of its FY22 aggregate reinsurance cover.

According to the company, the FY22 aggregate cover provides protection of $350 million in excess of $400 million. Additionally, individual events will be capped at $200 million in excess of $50 million per event.

Furthermore, IAG’s catastrophe cover after allowing for quote share arrangements comes to a maximum event retention of $169 million at 1 July 2021.

Storms rain down on IAG

Zooming out on the IAG share price, the recent storms and floods in Victoria appeared to unleash concern among investors.

The insurance company noted that it had received around 4,300 claims as of 15 June. For the most part, these claims involved property damage.

At the time, the number of claims was expected to climb higher as residents returned and inspected their homes more closely.

IAG’s preliminary estimate indicated that the Victorian floods could lift its FY21 natural perils claim costs between $720 million to $743 million. This would exceed the company’s allowance of $658 million and its previous guidance of $660 million to $700 million.

When it comes to insurance, claims are costs. Therefore, the increased natural perils cost would weigh on profitability.

The post What’s weighing down the IAG (ASX:IAG) share price lately? appeared first on The Motley Fool Australia.

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• What moved the IAG (ASX:IAG) share price today?

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 owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The financial year just past proved to be a profitable one for shareholders of the best ASX fintech shares.

While Australia’s traditional banks made a strong comeback during the COVID recovery year, the 5 best fintech ASX shares trading on the All Ordinaries Index (ASX: XAO) all saw their shares gain significantly more.

As our benchmark, the All Ords (which contains the 500 largest shares on the ASX) gained 25% during FY21, which ran from 1 July 2020 through to 30 June 2021.

Now let’s see how these nimble financial players stacked up.

Best ASX fintech share: HUB24 Ltd (ASX: HUB)

The best ASX fintech share to hold during FY21 was HUB24, with shares gaining 198% over the year.

The company uses its technology driven wealth management solutions to connect advisers and their clients. And it seems to be doing so efficiently. In March this year, HUB24 reported its funds under management (FUM) had increased 237% year-on-year to $51.4 billion.

HUB24 closed the financial year trading at $28.51 per share. It has a market cap of $1.8 billion and pays a slender dividend yield of 0.31%, fully franked.

Praemium Ltd (ASX: PPS)

Taking out the number 2 spot in our best ASX fintech list is Praemium, which gained 184% over the 12 months.

The company offers portfolio administration, investment platforms, and financial planning tools for the wealth management industry. And like our number one performer, Praemium also saw its funds under management grow strongly during the year, up 96% year-on-year when it provided its March update.

Praemium closed on 30 June at $1.08 per share. With just under 502 million shares outstanding, it has a market cap of $479 million.

Sezzle Inc (ASX: SZL)

Coming in at number 3 is Sezzle. Sezzle shares gained 128% during FY21.

The buy now, pay later (BNPL) share is a relative newcomer to the ASX. It listed in August 2019 and closed its first trading day at $2.39 per share.

In a sign of the growing trend of making a number of interest free payments on purchases, it’s currently at $8.87 per share after hitting all-time highs of $11.34 on 28 August, 2020.

Sezzle finished FY21 trading at $8.81 per share. The company has a market cap of $899 million.

Money3 Corp Ltd (ASX: MNY)

Moving down to number 4, we find Money3, with a highly respectable 116% share price gain over the financial year.

The company focuses on providing non-bank finance via secured automotive loans as well as secured and unsecured personal loans. In May, Money3 cited improved trading conditions to upgrade its profit guidance for FY21 from $36 million to $38 million.

Money3 closed at $3.38 per share on 30 June. It pays a 1.92% fully franked dividend yield and has a market cap of $657 million.

Afterpay Ltd (ASX: APT)

Demonstrating the continued strength of top performing buy now, pay later companies, the fifth best ASX fintech share is Afterpay. Afterpay’s share price gained 95% in FY21.

The BNPL heavyweight first began trading on the ASX in June 2017. And investors who bought shares back on day 1 would currently be sitting on paper gains of 3,912%.

Afterpay closed FY21 at $188.17 per share. With roughly 291 million shares outstanding, it has a market cap of $34.4 billion.

The post Here are the 5 best ASX fintech shares of the 2021 financial year appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Hub24 Ltd, and Praemium Limited. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Hub24 Ltd and Praemium 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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Woolworths Group Ltd (ASX: WOW) shares climbed higher yesterday. By market close, the Woolworths share price was trading at $38.21, 0.53% higher than the previous day.

In fact, the retail giant’s shares have climbed by around 10% since 1 May. Let’s take a closer look at what Woolies has been up to over the last two months.

New ‘dark store’

The company has announced plans to open a dark store in a location in Southern Sydney. A dark store only takes online orders, with no shop-front per se.

Woolworths intends to develop similar stores dotted throughout Sydney as the company pivots to prioritise its e-commerce division.

Woolworths’ share price jumped on the news, hitting an intraday high of $38.33 during yesterday’s session.

The Endeavour demerger

Woolworths commenced and completed the $10 billion demerger of its Endeavour drinks business in June. The Woolworths share price jumped almost 3% on 28 June upon completion of the demerger.

Shareholders voted overwhelmingly in favour of the plan, with 99.85% of the votes cast in favour of the demerger.

The deal is also set to return between $1.6 billion and $2 billion in cash to Woolworths shareholders via dividends.

Following the demerger, Woolworths chief executive Brad Banducci said:

We are excited to focus on our retail ecosystem with our customers and everyday needs at the core, while at the same time partnering with Endeavour Group. We are committed to creating better experiences together for a better tomorrow for all our stakeholders

As a result of the demerger the original Woolworths shares were split into two ASX-listed companies with the newly formed Endeavour Group Ltd (ASX: EDV).

Since the transaction was announced in May, investors have pushed the Woolworths share price up from $34.81 to yesterday’s $38.21.

PFD acquisition

Back in June, the Australian Competition and Consumer Commission (ACCC) announced it would not oppose Woolworths’ acquisition of PFD Food Services.

PFD is one of Australia’s premier foodservice distributors, and Woolworths received the green light for its planned $552 million investment in the company on 11 June.

With this, Woolworths targeted a 65% stake in PFD, and the transaction was finalised at the end of June.

Speaking on the deal, Woolworths’ Banducci said:

This investment is a logical adjacency for Woolworths Group and further supports the evolution of the group into a food and everyday needs ecosystem.

Since the transaction was finalised on 28 June, the Woolworths share price has climbed from $37.85 to today’s trading.

Woolworths share price snapshot

The Woolworths share price has had a choppy ride over the past 12 months, posting a return of around 12%.

Year to date, Woolworths shares have returned 10%, which has lagged the S&P/ASX 200 Index (ASX: XJO)’s return of ~11.3% this year.

At the current market price, Woolworths has a market capitalisation of $48.4 billion.

The post Here’s why the Woolworths (ASX:WOW) share price is up 10% since May appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX: WOW) share price up amid new ‘dark store’ plans
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• Where to next for the Woolworths (ASX:WOW) share price?

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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2021 has been a year of sideways movement for the Fortescue Metals Group Ltd (ASX: FMG) share price.

Shares in the iron ore major hit record all-time highs of $26.40 on 8 January but tumbled to lows of $18.87 by 22 March.

In the last week, there appears to be a resurgence in confidence for iron ore miners and the broader resources sector, with the Fortescue share price staging an 8.63% rally to close at $25.18 on Tuesday.

Fortescue share price eyeing previous record highs

The Fortescue share price is less than 5% away from its January all-time record high of $26.40.

Encouragingly, Fortescue isn’t alone in its attempt to break out to new highs.

The BHP Group Ltd (ASX: BHP) share price has rallied 4.86% in the last week to $50.70. It’s also not far off its 11 May all-time high of $51.82.

Similarly, the Rio Tinto Ltd (ASX: RIO) share price is up 3.52% in the last week to $128.36. It needs another 2.84% to reach its 10 May record all-time high of $132.94.

What’s the go with iron ore prices?

Iron ore prices continue to defy bearish expectations, holding above the US$200 level.

According to Market Index, the spot iron ore price is currently sitting at US$217.33 a tonne.

Looking ahead, experts believe iron ore could pull back to pre-COVID levels in the medium-to-long term.

The Australian government’s commodity forecaster, Office of the Chief Economist (OCE), said that “prices are forecast to average around US$150 a tonne in 2021, before falling to below US$100 a tonne by the end of 2022, as Brazilian supply recovers and Chinese steel production softens”.

The last time iron ore was fetching US$100 a tonne was around early June 2020.

Back then, the Fortescue share price was trading around $14.

What’s next for the Fortescue share price?

Goldman Sachs has slapped a sell rating on Fortescue shares with a 12-month target price of $18.20.

The broker believes that Fortescue’s rally might be coming to an end and vulnerable to falling iron ore prices.

The post Why the Fortescue (ASX:FMG) share price has rallied 6% in the last week appeared first on The Motley Fool Australia.

More reading

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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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

After racing upward by more than 4% in Monday trading, Tesla (NASDAQ: TSLA) give back half of its stock price gains Tuesday.

As of 2:52 p.m. EDT, shares of the electric car manufacturer were down by 2.5% from Monday’s close.

So what

So what was troubling Tesla on Tuesday? Well, for one thing, there’s the ongoing trial questioning the propriety of its $2.6 billion acquisition of SolarCity in 2016. Plaintiffs in the case allege that CEO Elon Musk put his own financial interests ahead of those of Tesla’s shareholders. That’s obviously not a good look for the company.

Meanwhile, Wall Street is still digesting the import of recent pricing moves, and of Tesla’s weekend rollout of “FSD v.9.0 Beta,” the latest iteration of the software that’s supposed to help make Tesla cars autonomous and usher in an age of robo-taxis.

In a note it put out Tuesday morning, Goldman Sachs asserted that increased sales and higher prices on Teslas sold will help the company earn an above-consensus $5 a share in 2021. On the other hand, notes TheFly.com, Goldman does worry that chip shortages in the automotive industry could curtail Tesla’s production numbers this quarter. If Tesla isn’t able to sell as many higher-priced Model S and Model X cars as Wall Street expects, that could weigh on profits.

Now what

Rumors of a price hike on the FSD feature (which some speculate could rise from $10,000 currently to $14,000) could help boost Tesla’s profits, of course. On the other hand, in a note released Monday, analysts at Citigroup warned that as far as autonomous driving goes, the new FSD software “doesn’t appear very different than” the software that preceded it, and certainly falls short of the level of independence that would permit transforming Teslas into robo-taxis, as Musk has predicted.

In short, even with share prices down 24% from their highs earlier this year, Citi sees Tesla stock as overpriced. Unlike Goldman Sachs, which thinks Tesla is a “buy,” Citi still argues it’s a “sell” — and worth no more than $175 a share.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock just gave back half of Monday’s gains appeared first on The Motley Fool Australia.

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Rich Smith 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 Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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It has been an unusually disappointing 12 months for the CSL Limited (ASX: CSL) share price.

Since this time last year, the biotherapeutics company’s shares are trading flat.

This compares to a 23% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the CSL share price underperforming the ASX 200?

Uncertainty is probably the best word to use to explain why the CSL share price is underperforming the ASX 200 over the last 12 months.

This uncertainty is being caused largely by plasma collection headwinds. Plasma is a core ingredient in many of CSL’s life-saving therapies such as immunoglobulins. As this isn’t something that can be made synthetically, the company must collect it from willing donors.

Unfortunately for CSL, the pandemic hit collections hard for a few reasons. One was people staying home to avoid contracting or spreading COVID-19, another was government stimulus payments. The latter meant that donors that donate for the financial reward suddenly had no reason to.

In addition to this, border restrictions in the US have meant that Mexicans have been unable to cross over into the United States to donate plasma.

This ultimately led to plasma collection centres having to raise payments to attract donors, putting pressure on margins. The big question, though, is how much pressure this will have on CSL’s margins and ultimately the CSL share price?

What impact will plasma collections have?

According to a recent note out of Credit Suisse, it is expecting a reasonably large impact to the company’s margins from these plasma collection headwinds.

The broker downgraded CSL’s shares to a neutral rating late last month after estimating that the CSL Behring business could experience a large gross margin decline in FY 2022.

Credit Suisse suspects that its CSL Behring business could have a gross margin of 54.1% in FY 2022. This will be down from 61.2% in FY 2020.

In light of this, the broker revised its earnings estimates lower and cut its CSL share price target to $310. However, due to recent weakness in the CSL share price, this price target now implies decent potential upside of almost 11% over the next 12 months.

Whether CSL’s ASX 200 underperformance continues, only time will tell. But no doubt its full year results and guidance for FY 2022 in August will have a major say in whether that is the case.

The post Why the CSL (ASX:CSL) share price has trailed the ASX 200 by 23% in the last year appeared first on The Motley Fool Australia.

More reading

• 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
• Worst ASX 20 shares of the past year: CSL (ASX:CSL) makes the cut
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat

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 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.

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As part of our end of financial year ruminating, today we bring you the 5 best ASX shares over the 12-month period.

More specifically, the 5 best ASX shares that make up part of the All Ordinaries Index (ASX: XAO).

The All Ords, as you likely know, is home to the 500 largest Aussie listed companies, making up the lion’s share of all listed companies in Australia.

And in FY21 (1 July 2020 through to 30 June 2021) the All Ords gained a whopping 25%.

Now, we need to bear in mind that those outsized gains are partly aligned to the recovery from the COVID-19 inspired market selloff late in FY20. A recovery that continued through much of the past financial year. And some of these same forces helped propel these top performing shares to hefty 1-year gains.

Notably, none of the top 5 gainers for the year pay dividends, with 3 in the resources sector and 2 in healthcare.

So, with that said, the best ASX share of the 2021 financial year was…

Best ASX share: Vulcan Energy Resources Ltd (ASX: VUL)

Over the 12-month period ending 30 June, Vulcan Energy’s shares gained 1,275%. That’s a 10-bagger plus quite a bit of change.

The mineral explorer is predominantly focussed on becoming a go-to lithium supplier for the fast-growing European electric vehicle (EV) markets.

With lithium being a core component in the batteries that power EVs and store grid power from renewables, demand for lithium has seen prices rising quickly. Rising commodity prices have certainly been a tailwind for Vulcan Energy’s share price.

Vulcan Energy closed the financial year trading at $7.70 per share. The company has around 108.8 million shares outstanding and a market cap of $948.4 million.

AnteoTech Ltd (ASX: ADO)

Coming in at close second is AnteoTech, which delivered a 1,175% share price gain in FY21.

The biotechnology company has historically focused in developing specialty products for the energy, diagnostic, and medical device markets. But this past year saw the share price leap after AnteoTech received emergency use authorisation in the United States for its COVID-19 at-home test, initially for the US Department of Defense.

AnteoTech finished FY21 trading at 26 cents per share. The company has a market cap of $468.8 million.

Imogene Limited (ASX: IMU)

Number 3 on our best ASX shares list is Imogene, which gained 1,009% over the year.

The clinical-stage immuno-oncology company is working to defeat one of humanity’s biggest scourges, cancer. And the share price was duly rewarded over the course of the year after the company reported positive progress in phase 2 trials of its gastric cancer treatment drug, HER-Vaxx.

Imogene closed on 30 June at 36 cents per share. The company is among the larger ones to make the top performers’ list, with a market cap of $1.6 billion.

Piedmont Lithium Inc (ASX: PLL)

Our fourth best performer for the financial year gone by is Piedmont Lithium, which saw shares gain 1,033% over the 12-month period.

As with our number one performer, Piedmont has capitalised on the booming demand for lithium. Demand growth which many analysts expect to continue.

Among its holdings, the company’s Carolina Lithium project – intended to supply the ever-growing fleet of EVs in the United States – looks to become one of the largest and lowest-cost producers of lithium hydroxide in the world.

Piedmont Lithium finished off FY21 trading at $1.02 per share. The resource company has a market cap of $552 million.

Chalice Mining Ltd (ASX: CHN)

Rounding off the list as the number 5 best ASX share is Chalice Mining, gaining 706% over the year.

The resource explorer and producer has had significant success at its Julimar project in Western Australia, where it’s hunting for large deposits of nickel (Ni) and copper (Cu) ore.

Chalice Mining closed FY21 trading at $7.42 per share. It’s the biggest company to make the top performers’ list, with a market cap of $2.6 billion.

The post The 5 best ASX shares of FY21 revealed appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares are surging on Tuesday. Here’s why
• Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher
• Chalice Mining (ASX:CHN) share price flops on demerger of gold assets
• 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.

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