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Zip Co Ltd (ASX: Z1P) and Afterpay Ltd (ASX: APT) shares are currently standing tall amid today’s selloff in the broader S&P/ASX 200 Index (ASX: XJO).

In afternoon trade, the ASX 200 is down 1.7% to 7,249 after briefly touching 7,400 for the first time last Friday.

The S&P/ASX Financials (INDEXASX: XFJ) is the main sector weighing down the market today, with banking heavyweights included in the fall.

The big four banks, Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are down 4.9%, 1.84%, 2.46% and 2.80% respectively.

Despite the broader market experiencing a sharp pullback from record highs, Zip and Afterpay shares have managed to eke out some gains, up 1.72% and 2.38% respectively.

What’s buoying Zip and Afterpay shares?

Tech shares holding ground

On Friday night, the US market experienced a similar selloff, led by the S&P 500 Index (INDEXSP: .INX) and Dow Jones Industrial Average (INDEXDJX: .DJI), which fell a respective 1.31% and 1.58%.

The selling pressure was a little less severe in the case of the tech-heavy NASDAQ-100 (INDEXNASDAQ: NDX) down 0.92%, while US-listed buy now, pay later (BNPL) company Affirm Holdings Inc (NASDAQ: AFRM) fell just 1.74%.

A similar narrative is unraveling on the ASX, with the S&P/ASX Information Technology (INDEXASX: XIJ) holding up, down just 0.21%.

Interest rate hikes on the horizon?

The United States Federal Reserve raised its inflation expectations last Wednesday, potentially bringing forward its timeline for interest rate hikes.

Fed Chairman, Jerome Powell flagged in his press conference that the strong rebound in the US economy could “[raise] the possibility that inflation could turn out to be higher and more persistent than we anticipate”.

According to CNBC, a majority of Fed committee members expect two rate hikes in 2023.

Tech shares typically perform better under a low interest rate environment, but according to Frazis Capital Partners portfolio manager Michael Frazis, there could be a window of opportunity to buy tech.

Despite the increasing concerns that interest rate hikes are on the horizon, benchmark US treasury yields slipped 4.17% on Friday night, to a 4-month low of 1.449%. Tumbling yields could be a factor keeping tech shares afloat in today’s session.

Afterpay share price playing catch up

Many BNPL shares still have a long way to go before reaching breakeven for the year.

The Afterpay share price is still down about 2.3% year-to-date and down 26% since its record all-time high of $160.05 in February.

The post Zip (ASX:Z1P) and Afterpay (ASX:APT) shares withstand market selloff appeared first on The Motley Fool Australia.

More reading

• Selling some ASX shares before tax time? Here’s what you should know
• These are the 10 most shorted shares on the ASX
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5
• Top brokers name 3 ASX shares to buy next week
• These were the best-performing ASX 200 shares last week

Kerry Sun has no position in any of the stocks mentioned.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The WiseTech Global Ltd (ASX: WTC) share price is trading lower with the rest of the market on Monday.

In afternoon trade, the logistics solutions company’s shares are down 1% to $32.00.

This decline has limited the WiseTech Global share price gain for 2021 to 5%. This means it is underperforming the  ASX 200’s gain of 8% year to date.

Is the WiseTech Global share price good value?

One leading broker that believes WiseTech Global’s shares are trading at an attractive level is Morgan Stanley.

According to a note out of the investment bank this morning, the broker has retained its overweight rating and $35.00 price target on the company’s shares.

Based on the current WiseTech Global share price, this price target implies potential upside of ~9.5% over the next 12 months.

What did the broker say?

The broker notes that one of its rivals has just released its quarterly results. For the three months ended 30 April, Canada-based Descartes Systems reported an 18% increase in revenue and a 49% jump in operating income.

This was stronger than the market was expecting and driven by a number of positive tailwinds. These include opportunities created by the UK’s departure from the EU, a cyclical recovery in freight volumes, and increased demand for cloud-based transport and logistics software.

The good news for WiseTech Global is that the broker believes these tailwinds will also be driving growth in its revenues over the coming years as well.

Outside this, Morgan Stanley has previously spoken about how it believes the company will benefit from its customers growing through mergers and acquisitions. It feels the market is underestimating the potential revenue uplift from ongoing consolidation among freight forwarders.

Is anyone else bullish on WiseTech Global?

Macquarie is also positive on WiseTech Global. It currently has an outperform rating and $34.00 price target on the company’s shares.

Earlier this month, the broker suggested that the company was likely to outperform its guidance in FY 2021.

The post Broker tips WiseTech Global (ASX:WTC) share price as a buy appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX tech shares rated highly by analysts
• The day’s big winners, including Mesoblast and WiseTech, plus more good economic news and borrowers taking more risk
• Why the WiseTech (ASX:WTC) share price stormed 6% higher today
• ASX 200 up 0.1%: Tech shares rise, Ansell names new CEO
• The tech shares to buy now (and the ones to avoid): analyst

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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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All investing eyes today will no doubt be on the S&P/ASX 200 Index (ASX: XJO). Fresh off making another new all-time high of more than 7,400 points last week, the ASX 200 has cratered today. It has lost a hefty 1.71% and is now back below 7,300 points at 7,242 at the time of writing.

That’s a sharp reversal to be sure. But there is another investing indicator that has performed an even more abrupt U-turn over the past week. That would be our sovereign currency – the Australian dollar.

A lower Aussie dollar

The Aussie dollar, until last week, had looked very comfortable, to the point of appearing lethargic. It had stayed in a band between 76 and 78 US cents ever since the start of the year. Just last Monday (a mere week ago), it was sitting happily at 77.1 US cents. But this morning, the Aussie dollar was trading as low as 74.8 US cents. That might not look like a meaningful difference. But it a fairly dramatic move for the national currency. Remember, it has only bounced around by a couple of cents since January.

We won’t get too deep into what caused this shift. But essentially, it’s likely to be a consequence of the US Federal Reserve’s ‘hawkish pivot’ last week. The Fed announced that it’s now considering the possibility of raising interest rates a lot sooner than it had previously flagged. Theoretically, if the US has a higher interest rate than Australia, it would attract capital away from Australian financial markets. This would in turn cause more Aussie dollars to be flowing out of Australia, reducing demand for Aussie dollars and thus lowering the ‘cost’ of buying said dollars. This is the situation that currency markets might have been anticipating over the past week.

To lose 3 cents in less than a week is a big move. And one that has real consequences for ASX shares. So what are these consequences?

Some ASX winners and losers

Well, a lower Aussie dollar means that importing goods into Australia becomes more expensive for Australian businesses and consumers on average. It also means that, conversely, exporting goods and services out of Australia becomes cheaper. Thus, any business that exports goods are a potential beneficiary of this situation. Think any mining company, such as BHP Group Ltd (ASX: BHP) or Rio Tinto Limited (ASX: RIO). Since iron ore (as well as most other commodities) is priced in US dollars, these companies can now sell their iron ore for more Australian dollars on paper, even though their buyers might be paying the same US dollar figure.

On the other side of the ledger, companies that import goods from overseas to sell may take a hit to their bottom lines. Think of a company like JB Hi-Fi Limited (ASX: JBH). JB is a larger retailer of technological goods like televisions, refrigerators and computers. It’s likely that, since most of these goods are made overseas, the cost to JB to import them will have risen alongside our dollar. If this is the case, JB would either have to raise its store prices or otherwise take a hit to its bottom line. There would be many other ASX companies in a similar situation.

Foolish takeaway

The Aussie dollar moves around a lot and is just something that every ASX company has to deal with – albeit with varying degrees. Remember, in the past 10 years, the Aussie dollar has been as high as US$1.10 and as low as 55 US cents. Currency fluctuations are normal. But the dramatic move we have seen over the past week is certainly worth taking note of.

The post The Aussie dollar has plummeted! Here are some ASX winners and losers appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Why is the ASX 200 falling today? Thank CBA shares
• Why Codan, CommBank, Rio Tinto, & Starpharma shares are sinking
• Selling some ASX shares before tax time? Here’s what you should know
• ASX 200 sinks 1.9%: BOQ’s ME Bank acquisition approved, CBA divests insurance business

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. 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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Shares in 4DS Memory Ltd (ASX: 4DS) are in the green today after the company released news it has received 2 units of its wafer memory technology.

At the time of writing, the 4DS share price is up 3.45% trading at 15 cents after hitting an intraday high of 16 cents apiece earlier today.

This makes it one of the top performers of the S&P/ASX All Technology Index (ASX: XTX) today. In contrast, the All Ordinaries Index (ASX: XAO) is down 1.9% today.

Let’s take a closer look at today’s news from the memory technology developer.

Quick refresher

4DS is working to create more functional, less expensive high-density, high-volume mobile and cloud memory storage.

This storage is needed in modern computers and mobile technology.

4DS has partnered with Belgium-based Interuniversity Microelectronics Centre (imec) to produce a megabit memory chip to run its mobile and cloud storage technology, named Interface Switching ReRAM.

4DS says it’s Interface Switching ReRAM will be the “next generation” of gigabyte mobile and cloud storage.

Currently, 4DS and imec are working together to develop wafers needed in the megabit memory chip.

Wafers arrive

According to 4DS’ release, the company has received 2 sets of wafers from imec.

One set is 4DS’ Second Platform Lot which, if successful, the company believes will bring it closer to completing a corporate transaction by the end of 2021.

The company now has 18 wafers from its Second Platform Lot at its facility in Fremont.

Additionally, the company used spare capacity on imec’s production equipment to produce a Third Non-Platform Lot of 23 wafers.

According to 4DS, the Third Non-Platform Lot will ensure the company can continue to build data sets for its Interface Switching ReRAM technology..

4DS is now conducting analysis of the wafers. It will update the market on the outcomes of the analysis in time.

4DS share price snapshot

2021 has been a good year for the 4DS share price, which has gained 7.2% year to date.

4DS shares have also gained 200% since this time last year.

The company has a market capitalisation of around $191 million, with approximately 1 billion shares outstanding.

The post The 4DS (ASX:4DS) share price is soaring today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Are 4 million Aussies about to lose a fortune on Bitcoin?
• Why is the ASX 200 falling today? Thank CBA shares
• What’s happening with the Strike Energy (ASX:STX) share price?
• Why Codan, CommBank, Rio Tinto, & Starpharma shares are sinking

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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

BHP Group Ltd (ASX: BHP)

According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted their price target on this mining giant’s shares to $59.00. The broker notes that the BHP share price has been a relatively poor performer in 2021 despite rising commodity prices. However, it feels this could change in August and expects bumper dividends and a strong balance sheet to drive a re-rating. The BHP share price is currently fetching $45.72 today.

Goodman Group (ASX: GMG)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and increased the price target on this integrated property company’s shares to $23.00. According to the note, the broker has been looking into Goodman’s multi-storey warehouse development in southern Sydney. Morgan Stanley is a fan and believes the economics are attractive. It is estimating a yield on cost of around 6.5% compared to a market cap rate of circa 4%. The broker is expecting projects like this to underpin Goodman’s Australian development profits throughout the 2020s. The Goodman share price is fetching $20.91 today.

REA Group Limited (ASX: REA)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $185.00 price target on this property listing company’s shares. It is a big fan of REA Group due to its positive view of the Australian property market, which it expects to underpin solid growth in the coming years. In addition to this, the broker notes that REA Group recently picked up a 16.3% stake in PropertyGuru at a valuation of A$275 million. However, there is speculation that PropertyGuru could now be acquired for US$2 billion, valuing REA Group’s stake at A$435 million. The REA Group share price is fetching $163.39 this afternoon.

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

More reading

• ASX 200 Weekly Wrap: ASX makes it 5 out of 5
• 5 things to watch on the ASX 200 on Monday
• 4 quality ASX growth shares rated as buys
• 2 highly rated ASX growth shares
• 4 ASX 200 shares making all-time record highs

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 REA 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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Bitcoin (CRYPTO: BTC) enthusiasts have largely shrugged off the recent price falls, which have been mirrored by most of the major cryptocurrencies.

One Bitcoin is currently worth US$35,384 (AU$47,179). That’s down about 0.3% since this time yesterday.

While the world’s largest digital token by market cap remains up 24% year-to-date, it’s now down 45% from the record high US$64,829 reached in mid-April.

The lesson?

Cryptocurrencies have the potential to deliver outsized gains in rapid order. And just as rapidly, they have the potential to see half or more of their value evaporate.

Are 4 million Aussies putting their wealth at risk?

The recent volatility in crypto markets is nothing new. And it hasn’t appeared to diminish interest in investing in Bitcoin and other digital tokens Down Under, particularly among younger Australian investors.

As CoinTelegraph reports, fully 40% of Australian millennials believe investing in crypto beats other investment means to save for a property.

That’s according to a survey conducted by cryptocurrency exchange Kraken along with its partner YouGov. The online survey queried 1,027 Australian adults from 3 May to 5 May. At the time Bitcoin had slipped from its record highs but was still trading above US$53,000.

Taking into account all age groups, the survey indicated that 22% of Australians – or some 4 million people – think crypto investments are a better way to save for a mortgage than traditional savings methods.

Commenting on the findings, Kraken Australia’s managing director Jonathon Miller said:

Australians still maintain some conservative attitudes toward investment. Property has been a cultural norm and high on the wish list for most investors, but as affordability continues to be an issue, we’re seeing more young people look for other options to grow wealth.

How the option of investing in Bitcoin and other cryptos to grow wealth works out in the longer-term remains to be seen.

A dire warning on Bitcoin and meme stocks

Michael Burry, the head of Scion Asset Management, has grave doubts about Bitcoin…to say the least.

You likely recognise Burry’s name from the Hollywood blockbuster, The Big Short. That movie portrayed his warnings of a pending subprime mortgage crisis prior to the onset of the GFC in 2008. Which, as we now know, was driven by subprime mortgage issues in the United States.

Last week Burry came out with a new set of warnings, sounding the alarm on both meme stocks and cryptocurrencies.

In a now-deleted tweet (sourced from Bloomberg) Burry wrote:

All hype/speculation is doing is drawing in retail before the mother of all crashes. When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.

The truth is no one really knows where the Bitcoin and the other cryptos will be in 12 months time.

Bitcoin may breach US$100,000 by then. Or it could fall below US$1,000.

For those 4 million Aussies planning to invest in crypto, proceed with care.

The post Are 4 million Aussies about to lose a fortune on Bitcoin? appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: ASX makes it 5 out of 5
• How Elon Musk’s tweets move the cryptocurrency market
• Is Facebook about to finally launch its cryptocurrency?
• World Bank won’t support El Salvador’s Bitcoin ambitions
• Bitcoin crashed nearly 50% last weekend — Should you worry?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 big news on the S&P/ASX 200 Index (ASX: XJO) today is… the ASX 200 itself. At the time of writing, the flagship index is down a substantial 1.62% to 7,249.8 points. That’s a pretty big readjustment, considering the ASX 200 was pretty much at a new record high last week – over 7,400 points. We haven’t seen a fall of this magnitude for a while now. So understandably, some investors might be a little nervous today. Especially considering the rampaging run ASX shares have been on over the past month or two.

So what’s going on?

Well, it’s first worth noting that ASX 200 blue-chip shares are falling across the board. The big miners like BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) are all down between 1-3% today. Telstra Corporation Ltd (ASX: TLS) has fallen 0.98%. Woolworths Group Ltd (ASX: WOW) has lost 0.14%.

But the biggest sector adding to the AX 200’s woes today is undoubtedly the ASX banks. The big four major banks make up 4 of the 6 largest ASX 200 shares by market capitalisation. This means they have a massive influence on what the ASX 200 does at any point in time. And the banks are being sold off heavily today.

Westpac Banking Corp (ASX: WBC) shares are currently down 2.63% to $26.17. Australia and New Zealand Banking GrpLtd (ASX: ANZ) shares are faring even worse, down a nasty 2.76% to $28.18. National Australia Bank Ltd. (ASX: NAB) shares are doing a little better, but still down a substantial 2.38% to $26.20 today. But it’s the Commonwealth Bank of Australia (ASX: CBA) that’s really dragging on the ASX 200 today.

CBA ruins the ASX 200 party?

The CBA share price has been walloped today. Commonwealth Bank is currently down a hefty 4.34% today to $99.19 a share, back under the $100 a share threshold it broke for the very first time only a few weeks ago. After reaching a new all-time high of $106.57 just last week, CBA is now around 7% off of that new high watermark.

CommBank is the ASX 200’s largest share, with a market capitalisation of $176.62 billion on current pricing. This means that CBA is also the ASX share with the most weighting in the ASX 200 index. According to iShares, CBA shares currently have a weighting of 9.1% in the ASX 200. In turn, this means that CBA has the distinction of being the share that has the single largest impact on the index itself.  As such, the hefty fall of ASX’s biggest bank today would be proving a major drag on the entire share market.

So what happened with CBA today? Well, as my Fool colleague Marc Sidarous covered earlier, the market seems to be reacting rather unenthusiastically to an announcement CBA made this morning. The bank will be selling off its general insurance division (CommInsure General Insurance) to Hollard Group for a yet-undisclosed amount. The bank did state that it would be paid $625 million in upfront considerations. But it only stated that the rest (undisclosed) will be received “upon achieving certain business milestones”.

Evidently, investors have not been impressed with at least some aspects of this deal. And we can largely thank this apathy for the dismal performance of the entire ASX 200 today.

The post Why is the ASX 200 falling today? Thank CBA shares appeared first on The Motley Fool Australia.

More reading

• Why Codan, CommBank, Rio Tinto, & Starpharma shares are sinking
• Selling some ASX shares before tax time? Here’s what you should know
• ASX 200 sinks 1.9%: BOQ’s ME Bank acquisition approved, CBA divests insurance business
• Integrated Research (ASX:IRI) share price jumps 5% on trading update
• CBA (ASX:CBA) share price on watch after insurance business sale

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited and Telstra Corporation Limited. 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 Telstra 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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Strike Energy Ltd (ASX: STX) shares are edging lower on Monday. At the time of writing, the Strike share price is trading 1.39% lower at 35.5 cents.

Below we look at the latest update from the ASX energy company.

What did Strike report?

The Strike Energy share price is falling during Monday trade after the company updated the market on the gas resource at its West Erregulla 5 (WE5) well. The announcement was on behalf of its EP469 joint venture.

Strike owns and operates a 50% joint venture interest in EP469. Warrego Energy Ltd (ASX: WGO) holds the other 50% interest.

According to the release, Strike has finished drilling the well to 5,015 metres, with the final depth reached in 38 days. Through its use of logging-while-drilling tools, Strike has acquired wireline logs to “confirm the reservoir and resource characteristics” of the drill sites.

Strike said that its initial Kingia results confirmed the presence of a “large high quality gas resource” at West Erregulla, in line with expectations. The company reportedly struck the Kingia formation at a depth of 4,771 metres, significantly shallower than expected.

The company said:

Gas was observed throughout the Kingia which was measured with a high gas saturations and is interpreted to have a net pay of 32 metres, with an average porosity of 10% across this section and porosities up to 15%. Strike interprets the Kingia reservoir as an above average play across the numerous discoveries at Waitsia, West Erregulla, and Beharra.

Looking ahead, Strike said it plans to conduct further wireline logging to acquire fluid samples and pressures across the various formations it is drilling. Once the final production casing string is cemented in place, it intends to keep the well on inventory for “Phase 1 development as a future producer”.

Strike Energy share price snapshot

Over the past 12 months, Strike Energy shares have gained 69%. By comparison, the All Ordinaries Index (ASX: XAO) is up 23% over the same period.

Year to date, the Strike Energy share price has continued to outperform, up 24.6% so far in 2021.

The post What’s happening with the Strike Energy (ASX:STX) share price? appeared first on The Motley Fool Australia.

More reading

• Why Kogan, MyState, Regional Express, & Strike shares are sinking

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a disappointing decline. At the time of writing, the benchmark index is down 1.8% to 7,233.7 points.

Four ASX shares that have fallen more than most today are listed below. Here’s why they are sinking:

Codan Limited (ASX: CDA)

The Codan share price has fallen 11.5% to $17.09. This is despite there being no news out of the metal detector manufacturer. However, with the gold price plummeting, investors may believe that demand for metal detectors has now peaked. Some recent insider selling by its CEO may also be weighing on its shares.

Commonwealth Bank of Australia (ASX: CBA)

The Commonwealth Bank share price is down almost 5% to $98.84. This is despite the banking giant announcing the sale of its general insurance business this morning. However, all of the big four banks are tumbling lower today. This may be due to profit taking after some stellar gains in 2021.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is down 2.5% to $120.31. This morning analysts at UBS downgraded the mining giant’s shares to a sell rating with a $104.00 price target. The broker made the move largely on valuation grounds and concerns that iron prices may have peaked. It suspects prices could halve in value over the next 18 months.

Starpharma Holdings Limited (ASX: SPL)

The Starpharma share price has tumbled 9% to $1.55. Investors have been selling the dendrimer products developer’s shares following an update on its UK operations. According to the release, its UK retail partner, LloydsPharmacy, has received correspondence from the UK Medicines and Healthcare Products Regulatory Agency  regarding the promotional claims for the company’s Viraleze antiviral nasal spray. This relates to references to SARS-CoV-2 and COVID-19. Sales have been suspended in the country while the matter is resolved.

The post Why Codan, CommBank, Rio Tinto, & Starpharma shares are sinking appeared first on The Motley Fool Australia.

More reading

• Selling some ASX shares before tax time? Here’s what you should know
• ASX 200 sinks 1.9%: BOQ’s ME Bank acquisition approved, CBA divests insurance business
• Why the Starpharma (ASX:SPL) share price is down 10% today
• CBA (ASX:CBA) share price on watch after insurance business sale
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 Lake Resources N.L. (ASX: LKE) share price is on fire today. At the time of writing, Lake Resources shares are up a hefty 13.77% today to 34 cents a share. That comes after the company closed at 30 cents a share last week, and opened at 32 cents this morning.

So what’s going on with this ASX lithium company’s share price today?

Lake share price shoots higher

It’s not exactly clear what’s lighting the rocket under Lake Resources shares today. There hasn’t actually been any major official news or announcements out of the company this morning. Or indeed since 4 June, when a financial update for its Kachi project was released.

It’s worth noting that Lake Resources’ fellow ASX lithium miners are not enjoying the same sentiment today either. Pilbara Minerals Ltd (ASX: PLS) shares are down 1.43% at the time of writing to $1.38 a share. Similarly, Galaxy Resources Limited (ASX: GXY) shares are also on the nose this morning, falling 2.22% to $3.30 a share.

There might be another factor at play here though.

Last week, Lake released a research report from Orior Capital on its business fundamentals. This Orior report found that the company looks incredibly cheap. It compares the current Lake Resources share price to that of US-based fellow lithium company Standard Lithium Ltd (OTCMKTS: STLHF).

It found that Standard Lithium is currently trading at 107% of its adjusted attributable post–tax net present value (NPV). Orior reckons that if Lake was valued with the same model, its shares are worth around $1.89 a share. That would imply a potential upside of 456% from the current share price, and 530% from the share price that Lake Resources closed at last week.

It’s possible that investors have taken some of the findings of this report to heart today.

About the Lake Resources share price

The Lake Resources share price has been a solid performer for investors over the past few months and years. The company’s shares have enjoyed gains of 21.4% over the past week alone, 26% over the past month, a whopping 375% year to date, and 750% over the past 12 months.

At the current share price, Lake Resources has a market capitalisation of $343.4 million.

The post Lake Resources (ASX:LKE) share price on fire today up 14% appeared first on The Motley Fool Australia.

More reading

• Andromeda (ASX:ADN) share price slides 8% despite positive updates
• Here’s why the Telix (ASX:TLX) share price is crashing 14% lower
• Selling some ASX shares before tax time? Here’s what you should know
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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. 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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