Tag: Motley Fool

The Dateline Resources Ltd (ASX: DTR) share price is putting the likes of AMC Entertainment Holdings Inc (NYSE: AMC) and GameStop Corp. (NYSE: GME) to shame this morning.

AMC impressed market analysts as retail traders again drove shares 95% higher yesterday (overnight Aussie time).

And yes, that’s an impressive daily gain.

But it pales compared to the Dateline Resource share price today, up 4,066% in early trade.

Below, we look at what’s driving the surge in investor interest in the ASX gold minnow.

What did Dateline Resources report this morning?

Dateline Resources’ share price is rocketing after the company reported promising interim results from its geological review of historic exploration data at its recently acquired Colosseum Gold Mine Project. Dateline announced its acquisition of Colosseum, located in the US state of California, in March this year.

According to the release, Colosseum produced around 344,000 ounces of gold between 1988 and 1993 from two open pits. Back then an ounce of gold was trading for US$350 per ounce, compared to today’s US$1,907 per ounce. The site has not been explored in 25 years.

In the 1980s, BP Minerals defined a combined resource of 1.1 million ounces of gold down to an average depth of 850 feet (260 metres) below the surface, at 0.5 gram per tonne cut-off grade.

Dateline reports that gold is hosted in two “well defined and steeply dipping breccia pipes”, both measuring around 800 feet by 400 feet. It said that data from BP Minerals confirms both breccia pipes continue for another 1,750 feet below the defined resource shell.

Along with detailed satellite imagery, the company said it has received more than 140 boxes of information on Colosseum from Barrick yet to be reviewed and digitised.

Commenting on the historical data, Dateline Resources Managing Director, Stephen Baghdadi said:

Based on the records, less than 400,000 ounces of gold was mined from a 1.1 million ounce resource which was drilled out by BP Minerals. The BP Minerals resource is defined down to 800ft in the East pipe and 900ft in the west pipe for an average of 850 feet.

We now know 2 deep diamond core holes were put down in 1972 in search of molybdenum. Both deep holes confirmed that the breccia pipes are still present at 2,600 feet below the surface, which is an average of 1,750ft below the bottom of the BP Minerals defined resource shell. This increases our confidence in the upside potential of the project.

Dateline Resources said it is continuing to digitise the historical data and will provide additional updates on its 2021 field program plans.

Dateline Resources share price snapshot

Dateline Resources shares have been all over the map this past year, currently up 317% over 12 months. By comparison the All Ordinaries Index (ASX: XAO) is up 24% in that same time.

Year-to-date the Dateline Resources share price is up 150%. As for investors who bought at market close yesterday, they’re sitting on gains of 4,066%.

The post Dateline Resources (ASX:DTR) share price rockets 4,066%! Here’s why appeared first on The Motley Fool Australia.

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

Value investors may want to keep an eye on the Stockland Corporation Ltd (ASX: SGP) share price as a leading broker reckons the property group is about to re-rate.

The news comes as ASX property shares lag the broader market recovery from the COVID-19 mayhem.

The Stockland share price rallied over 20% from mid-March last year, while the Mirvac Group (ASX: MGR) share price added around 7% and GPT Group (ASX: GPT) share price dipped by 8%.

In contrast, the S&P/ASX 200 Index (Index:^AXJO) has bounced by close to 30% over the same period.

Why the Stockland share price could outperform

But the Stockland could soon play catch-up if Morgan Stanley is on the money.

“We focus on Sydney dwelling price movement vs. SGP’s P/E [price-earnings] multiple over a 20-yr history and find SGP generally re-rates and de-rates in line with the residential cycle,” said the broker.

Stockland’s leverage to the Sydney housing market is fortuitous. The latest housing stats showed that Australia’s largest residential market is leading the property boom.

Stockland’s share price correlation with Sydney house prices

P/E expansion to drive Stockland’s share price higher

What’s more, there is lots of room for the Stockland share price to re-rate given that it’s trading on a relatively modest P/E.

Using Morgan Stanley’s FY22 forecast earnings per share (EPS) for the group, Stockland’s P/E stands at around 13.8 times.

If Stockland’s P/E were to revisit the peaks in 2007, it would imply a 30% upside for the stock.

Better leverage to Sydney housing market

“Residential development contributes c.35% of SGP’s earnings, and SGP is Australia’s largest land developer,” said Morgan Stanley.

“As such, dwelling price momentum may be supportive of potential re-rating (or in a down-cycle, the de-rating) of SGP.”

The broker has yet to factor in the re-rating. It’s 12-month price target on the Stockland share price is $5 a share but it recommends investors buy the shares now.

Does Stockland have an edge over its peers?

In case you are wondering, Stockland is more leveraged to the rising Sydney housing market than its peers. Mirvac is largely exposed to apartments in Sydney and this segment of the property market is lagging.

And while GPT is exposed to the housing market, it’s significant portfolio of shopping malls is seen as a drag in this current environment.

The post This ASX share could be the next to get a re-rating boost appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3cdUHJ7

The Magnetic Resources NL (ASX: MAU) share price is rising this morning. At the time of writing, the ASX gold explorer’s shares trading for $1.52, up 1.33%.   

Below we take a look at the company’s latest drilling results.

ASX gold share defines new range of targets

Magnetic Resources shares are gaining in morning trade. This comes after the ASX gold explorer reported it had defined multiple new gold targets at its Lady Julie project in Western Australia. The new targets are located across 9 areas totalling 14 kilometres.

The company combined its own recent 2D seismic survey with historical drilling data and results from its recent major drill campaigns to define the new targets. Areas that were not previously tested returned “new significant intersections”.

It also reported the best-looking target as the 3-kilometre long HN9 mineralisation. Other potentially juicy targets are the 3.4 kilometre long Lady Julie North and 1.5 kilometre long Lady Julie Central.

At Lady Julie North, Magnetic Resources reported intersections including 18 metres at 2.1grams/tonne gold from 32 metres and 13 metres at 1.37g/t Au from 3 metres.

The ASX gold explorer said numerous untested areas remain. Magnetic Resources has also planned additional drilling at an area labelled Lady Julie North 2.

According to the release, the results represent completed assays from 55% of the total metres drilled in the exploration program. Another 117 reverse circulation (RC) drill holes have assays pending.

A new rig has already started on the site. Additionally, Magnetic Resources also plans to drill 79 holes for 7,844 metres to test and extend all 9 of the identified targets “with the aim of ultimately converting to an Indicated Resource”.

With the gold price rising strongly over the past month, ASX gold explorers are getting near historic highs for any of the yellow metal they do uncover. One ounce of gold is currently worth US$1,908 (AU$2,478) per ounce. As recently as 30 March gold was down at US$1,685 per ounce.

Magnetic Resources share price snapshot

Magnetic Resources shares have gained 27% over the past 12 months, edging ahead of the 24% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the ASX gold explorer’s share price is up 30%.

The post Why ASX gold explorer Magnetic Resources (ASX:MAU) shares are lifting appeared first on The Motley Fool Australia.

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

Despite announcing what appears to be only good news over the last 30 days, the Airtasker Ltd (ASX: ART) share price has slipped 11.24%.

A month ago, shares in Airtasker would have set an investor back $1.29. Now, the Airtasker share price is trading lower at $1.15. So, what may have been driving the online outsourcing company’s share price lately?

The month that’s been for the Airtasker share price

The Airtasker share price fell 16% between the first trading session of May and its first announcement of the month.

Then, beginning in mid-May, Airtasker released 2 pieces of price-sensitive news to the market, both of which received positive reactions from ASX investors.

Let’s take a look at the recent news out of Airtasker.

Overseas expansion

On 21 May, Airtasker announced it was to acquire Zaarly.

Zaarly is a San Francisco-based local services marketplace. It has more than 597,000 users and more than 900 service providers.

Airtasker agreed to pay around $3.4 million for Zaarly.

The acquisition of Zaarly is Airtasker’s first overseas expansion effort. It plans to continue its expansion into the United Kingdom in due course. Airtasker’s shares went into a trading halt on announcing the acquisition

Capital raise

To fund the acquisition and its international growth plans, Airtasker completed a $20.7 million capital raising.

The capital raise involved 20.7 million new shares priced at $1 a piece offered to institutional, professional, and sophisticated investors.

The $1 price tag represented a 7.4% discount to the Airtasker share prices’ previous closing price.

The company announced the successful completion of the placement and unfroze its shares on 25 May.

That day, the Airtasker share price closed 12% higher than it did in its previous trading session.

Airtasker share price snapshot

Despite its recent fall, the Airtasker share price is still in the ASX green.

Currently, it’s 9.05% higher than it was when it debuted on the ASX in late March. Its opening share price was just $1.05.

The company has a market capitalisation of around $479 million, with approximately 413 million shares outstanding.

The post The Airtasker (ASX:ART) share price has fallen 11% in a month appeared first on The Motley Fool Australia.

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

The Wesfarmers Ltd (ASX: WES) share price is trading broadly flat at $56.25 on Thursday following the release of its strategy briefing.

Listed below are a few key takeaways from the strategy briefing:

Wesfarmers’ retail businesses growing on a two-year basis

The company notes that its retail businesses have been cycling the impacts of COVID-19 in the prior year from mid-March. This has led to significant volatility in monthly sales growth results. However, on a two-year basis, all of Wesfarmers’ retail businesses have continued to record strong sales growth. Management believes this reflects their ability to provide safe and trusted environments while delivering greater value, quality and convenience for customers.

Online sales growth is moderating

As we have seen with ecommerce company Kogan.com Ltd (ASX: KGN), Wesfarmers has experienced a moderation in its online sales growth after customer traffic to stores increased. This has resulted in a reduction in online penetration. It has also led to the Catch business’ gross transaction value growth being negative since mid-March. However, management notes that overall online penetration remains above pre-COVID levels.

Industrials businesses performing positively

Wesfarmers isn’t just Bunnings, Kmart, Catch, Officeworks, and Target, it also has a range of industrials businesses. These include Covalent Lithium, QNP, and CSBP. Pleasingly, the company revealed that positive trading has continued in the industrials segment and good operating performances have been achieved.

Kmart well-positioned

Management spoke positively about its Kmart business and believes it is well-positioned for sustainable long term growth. It continues to drive the growth of Kmart by leveraging scale and product development capabilities, completing the store conversion program and delivering digital initiatives. Another positive is that Kmart Group now expects to incur pre-tax, one-off non-operating costs of approximately $60 million to $70 million in FY 2021 relating to Target store closures and conversions. This is a reduction from its previous estimate of $90 million to $110 million.

The post 4 key takeaways from the Wesfarmers (ASX:WES) strategy briefing appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3vPHu0U

Sezzle Inc (ASX: SZL) shares are flying high in early trading on Thursday. At the time of writing, the Sezzle share price is rocketing 13.47% higher to $8.51.

This comes after the company provided an update on a new partnership deal with retailer Target in the United States.

New partnership

Sezzle shares are having a bumper morning following the company’s latest release.

In its statement to the ASX, Sezzle advised it’s entered into a 3-year agreement with retailing giant, Target Corporation (NYSE: TGT). The deal follows Sezzle completing its proof of concept (POC) with Target, which looked at the feasibility of teaming up.

Under the new agreement, Sezzle’s platform will be available in-store and across Target’s digital platforms. This will allow customers to make purchases at Target and take up Sezzle’s interest-free payment plans.

The latest partnership is considered significant to Sezzle, as Target reported first-quarter earnings of US$2.1 billion last month. This was well up on the US$284 million the United States retailer achieved in the prior corresponding period when lockdowns were in full force.

Sezzle’s underlying merchant sales for the same period rose to US$375.1 million, well up on the US$119.4 million figure from the previous year.

Quick take on Sezzle

Founded in 2016, Sezzle is a buy now, pay later (BNPL) company that offers customers the ability to shop online and pay over instalments. Repayments consist of 4 interest-free payments spread over a 6-week period.

As of March 2021, the BNPL business had more than 2.4 million active users and over 34,000 participating merchants. Sezzle operates largely in the United States and launched into Canada in 2019.

How has the Sezzle share price been performing?

It’s been a rollercoaster ride for Sezzle shareholders of late, with the company’s share price moving around sharply. Sezzle shares reached an all-time high of $11.99 in February this year, before falling to around the $7 mark in mid-May.

On valuation grounds, Sezzle commands a market capitalisation of roughly $870 million, with approximately 103 million shares outstanding.

The post Why the Sezzle (ASX:SZL) share price is rocketing 13% today appeared first on The Motley Fool Australia.

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

The travel industry generally has much upside in the post-COVID world, but one particular Australian business is looking especially good.

That’s according to Montgomery Private Fund portfolio manager Stuart Jackson, who reckons Webjet Limited (ASX: WEB) could take off soon.

“With many economies re-opening, unleashing a likely tsunami of pent-up travel demand, the future is looking brighter,” he said on a company blog post.

“While the current level of profitability remains impaired by the effects of the global pandemic, the market is looking for signs of sequential improvement as well as focusing on the company’s rate of cash burn to ensure it has enough capital to make it across the great divide.”

Webjet shares were up 2.94% on Wednesday to close the day at $5.26.

Webjet’s recovery really ramping up lately

Jackson noted that April was a bumper month for Webjet, generating $86.1 million of the total transaction value (TTV) generated through its “over the air” (OTA), or wireless, business.

“This means Webjet generated 87% of its TTV from the whole of the March quarter in just one month during April,” he said.

“TTV would have been around 75% of total 2019 levels in April, even without any international travel.”

The frenzied consumer activity after Easter this year (start of April) matches up with Coles Group Ltd (ASX: COL)’s commentary during its quarterly update, according to Jackson.

Webjet’s market share is actually higher than before COVID

Webjet’s slice of the Australian OTA travel market is actually bigger than it was before the pandemic arrived.

In fact, it’s doubled — from 5.5% average market share for the 8 months to May 2020, compared to 11% since then.

“This is partially due to bricks-and-mortar travel agent traffic continuing to be impacted by [lack of] consumer willingness to go to malls and other locations,” said Jackson. 

“However, there is likely to have been a structural shift in online share as a result of COVID given that it will have introduced more of the population to this distribution channel.”

A competitive advantage for Webjet

Jackson pointed out that Qantas Airways Limited (ASX: QAN) is planning to reduce travel agency commissions for international flights from 5% to 1%, starting July next year.

The market has interpreted this as a headwind for all ASX travel shares, but it could turn out to be a boost for Webjet.

“In the case of Webjet it is important to recognise that it generates more of its revenue from domestic flights than international flights,” said Jackson.

“Additionally, unlike its competitors, Webjet generates a material proportion of its revenue from booking fees, which will not be impacted by the change to commission rates.”

Other travel agents would either need to take a hit in revenue or increase fares.

“This could end up representing a competitive advantage for Webjet over more traditional travel agents.”

The post Now boarding! This ASX travel share could take off again: analyst appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ibP6a2

The Creso Pharma Ltd (ASX: CPH) share price is shooting higher on Thursday following a positive development.

In morning trade, the cannabis and psychedelics company’s shares are up 11% to 15.5 cents.

Why is the Creso share price shooting higher?

The catalyst for the rise in the Creso share price today has been a favourable regulatory shift in California.

This morning the company announced that it will expedite a Californian market entry following the recent passing of Senate Bill 519.

While the bill remains subject to further regulatory approval from California’s lower house and the Governor of California, if signed into law, it could make a wide range of psychedelic substances, including psilocybin, legal to use and possess for adults over the age of 21.

The company notes that the bill was introduced to progress a more health-focused approach to the use of psychedelic compounds and to address the current mental health crisis in the United States. It also marks the ongoing push towards acceptance of psychedelic compounds as an alternative treatment route.

Creso is currently in the process of acquiring Halucenex Life Sciences, which specialises in psychedelic compounds.

Management commentary

Creso’s non-executive Chairman, Adam Blumenthal, commented: “This is a major development for Creso Pharma and Halucenex and provides a key strategy piece, which will underpin our expansion into the US market.”

“Over the recent months, we have made a number of US focused appointments and Halucenex have secured multiple partnerships and agreements that will allow the Company to pursue the US psychedelics market and become a first mover in the sector.”

“The Board and management team are actively assessing a number of strategies to expedite a US market entry and will leverage our existing partnerships and technical experience in the psychedelics space to unlock further value for shareholders,” he concluded.

Despite today’s strong gain, the Creso share price is down a disappointing 22% since this time last month.

The post Why the Creso (ASX:CPH) share price is shooting 11% higher appeared first on The Motley Fool Australia.

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

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.

Amazon.com (NASDAQ: AMZN) announced on Wednesday morning that its member-only shopping event, Prime Day, is scheduled for June 21 and June 22 — about a month earlier than usual.

The two-day shopping event will feature “epic deals and the best savings Prime has to offer,” the e-commerce giant said in a press release about the event.

As it’s sure to provide a sales lift for Amazon, investors have good reason to be excited about Prime Day.

Prime Day 2021: The details

Kicking off at 3:00 a.m. EDT on Monday, June 21, Prime Day 2021 will feature more than 2 million deals. These deals, of course, will cover every shopping category, including the company’s own digital services.

The event will take place in “the U.S., the U.K., the United Arab Emirates, Turkey, Spain, Singapore, Saudi Arabia, Portugal, Netherlands, Mexico, Luxembourg, Japan, Italy, Germany, France, China, Brazil, Belgium, Austria, and Australia,” Amazon said.

Not one to miss out on the attention Prime Day brings to its website ahead of the event, Amazon is already rolling out some pre-Prime Day deals.

A major catalyst

Last year, Prime Day was shifted from its typical July time frame to October due to the COVID-19 pandemic. But despite economic headwinds, the event still provided a major lift for Amazon. The company said Prime Day 2020 was a record-breaking event, with small and medium businesses on its e-commerce platform seeing a 60% increase in sales from Prime Day 2019. 

Sales of Amazon’s own devices benefited, too. The Echo Dot smart speaker, for instance, was the best-selling item. Overall, “millions” of Alexa-compatible devices were sold during the event.

Good timing

A June debut for this year’s Prime Day is smart scheduling on Amazon’s part. As Amazon CFO Brian Olsavsky said during the company’s first-quarter earnings call, the date change means Prime Day won’t overlap with a busy vacation season in July.

But there’s more to it. Moving the shopping event to June will also mean it falls in Q2 instead of Q3. Amazon is up against a tough comparison in the second quarter of 2020 when e-commerce sales surged as many people around the world were simultaneously quarantining at home. Having Prime Day in June will help make Amazon’s Q2 comparison easier.

Despite the tough comparison, Amazon still expects the momentum in its business and Prime Day’s shift to June to lead to sharp year-over-year growth in Q2 sales. Management’s outlook calls for second-quarter revenue to be between $110 billion and $116 billion, up 24% to 30% year over year.

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

The post Here comes Amazon’s Prime Day: What investors should know appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/3icMw3H

The Pro Medicus Limited (ASX: PME) share price is on the move on Thursday morning following the release of an announcement.

At the time of writing, the health imaging company’s shares are up 1% to $46.75.

This latest gain means the Pro Medicus share price is up 33% since the start of the year.

What did Pro Medicus announce?

This morning Pro Medicus announced that its wholly owned U.S. subsidiary, Visage Imaging, has signed a multi-year research collaboration agreement with healthcare giant Mayo Clinic.

According to the release, the agreement will serve as the framework for collaboration between the two parties to facilitate development and commercialisation in the field of artificial intelligence (AI), leveraging the Visage AI Accelerator platform.

Visage Imaging’s Global CTO, Malte Westerhoff, PhD, said: “Our AI Accelerator program was designed to closely align Visage’s engineering and product development capability with clinical research partners such as Mayo Clinic who have a depth of clinical knowledge and extensive research expertise.”

“It provides a unique set of tools for data de-identification, collection, curation, analysis and ‘path-to-production’ in research projects bringing the efficiency and speed of Visage technology to research, resulting in a unified link between the two domains,” he added.

Dr Westerhoff believes AI will play a major role in the healthcare sector in the future. This is particularly the case in the imaging IT field, which could benefit from the development of innovative AI solutions.

He concluded: “We see AI playing a significant role in healthcare particularly in our field of imaging IT. We have optimized our Visage 7 platform for AI enabling both our own, as well as third-party algorithms to be seamlessly integrated into the clinician’s desktop. We see this research collaboration agreement with Mayo Clinic as another significant piece of our AI strategy, one that has the potential to develop innovative AI solutions that meet well defined clinical goals and ultimately lead to better patient outcomes.”

The post Pro Medicus (ASX:PME) share price higher on Mayo Clinic deal appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2RjmhO4