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The Bod Australia Ltd (ASX: BDA) share price is smoking the ASX today following the release of a positive sales update.

At the time of writing, shares in the cannabis healthcare company are trading 21.6% higher at 45 cents. In comparison, the All Ordinaries Index (ASX: XAO) is 0.56% in the green, sitting at 7,338 points.

What’s driving the Bod share price higher?

Investors are fighting to get a hold of Bod shares after the company advised it has achieved its highest ever month of medicinal cannabis sales.

In total, 1,789 MediCabilis prescriptions were fulfilled in Australia during the month of April. This represents an 11% increase on the previous record month, in which March delivered 1,617 prescriptions. For the FY21 period, the company has sold 9,519 units, marking a 138% jump on FY20 levels.

Roughly 27% of the total special access scheme category B prescriptions were filled across Australia last month. Overall, this category accounted for 6,682 completed prescriptions, reflecting continued momentum.

Bod stated that 64% of the sales orders dispensed in April came from repeat prescriptions. This highlights patient and physician product satisfaction while generating consistent and recurring revenue.

Bod CEO Jo Patterson touched on the company’s performance, saying:

MediCabilis volumes continue to grow at a very pleasing rate and the recent prescription sales growth further highlight Bod’s ability to generate strong revenues across one of the company’s two core operating divisions.

The company has a number of new products in the pipeline that will be launched imminently. We anticipate that the introduction of new products and scale up of operations across both business divisions will unlock considerable value for shareholders.

Bod share price review

Despite today’s meteoric rise, Bod share price has lost 6% since the beginning of 2021. It’s worth noting though, the company’s shares mostly accelerated at the back end of last year, before recently treading lower.

Based on today’s prices, Bod presides a market capitalisation of about $39 million, with approximately 105 million shares on issue.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Tassal Group Limited (ASX: TGR) has become the most shorted share again despite its short interest falling week on week to 9.6%. This seafood company has been targeted due to weak salmon prices and concerns that China might slap duties on Australian produce.
• Resolute Mining Limited (ASX: RSG) has seen its short interest ease week on week to 9.4%. Short sellers have been going after this gold miner due to its weak production, disappointing guidance, and (now resolved) political issues relating to its Bibiani operation in Ghana.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest jump significantly to 9.4%. Short sellers have been increasing their positions in this online furniture and homewares retailer since it announced plans to invest materially in its growth at the expense of profit margins.
• Kogan.com Ltd (ASX: KGN) has also seen its short interest jump week on week to 9%. Short sellers have been piling in amid concerns over inventory issues, discounting, and its slowing sales growth.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 8.9%, which is down slightly week on week once again. The travel agent’s shares have come under pressure since it revealed that its second half loss is expected to be as large as the one recorded in the first half. This was materially more than the market anticipated.
• Webjet Limited (ASX: WEB) has seen its short interest ease notably to 8.4%. The online travel agent has been targeted due to concerns over its valuation and the travel market’s stuttering recovery.
• Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is flat week on week. The recent exit of its CEO and concerns over its contract discussions with Woolworths Group Ltd (ASX: WOW) appear to be weighing on sentiment.
• Megaport Ltd (ASX: MP1) has short interest of 7.8%, which is up again week on week. This high level of short interest appears to have been driven by concerns over the premium its shares trade at compared to the market average.
• Metcash Limited (ASX: MTS) has seen its short interest edge lower to 7.3%. Investors may be concerned by reports that trading conditions are reverting back to normal again in the supermarket industry. This could mean it gives back market share to the big two.
• Zip Co Ltd (ASX: Z1P) has short interest of 6.9%, which is down week on week. Valuation concerns and international expansion execution risks appear to be the main reason for this high level of short interest.

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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 recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Kogan.com ltd, MEGAPORT FPO, and Temple & Webster Group 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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PointsBet Holdings Ltd (ASX: PBH) shares are on the move this morning after the company provided some acquisition news. In early trade, the PointsBet share price is trading 3.54% higher at $14.04.

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

What’s driving the PointsBet share price?

The PointsBet share price is responding positively after the company revealed it is acquiring United States-based account wagering provider Premier Turf Club for US$2.9 million. Premier Turf Club is an active pari-mutuel Advance Deposit Wagering (ADW) operator with a license to operate in Oregon. The company provides legal telephone and online betting services, handling over $375 million in wagers through its online platform since 2007. 

Pari-mutuel betting, also known as pool betting, takes a different spin on the traditional customer vs. bookmaker style of betting. Instead of going against the bookmaker, customers are placing wagers against other bettors who have placed wagers on the same event. All wagers go into a pool, and the pool is shared equally between those who win. A small percentage of total wagers is deducted for the house. 

PointsBet believes Premier Turf Club’s extensive industry expertise and relationships, customer-focused operations, and excellent reputation will be of immediate value for the company and its growth aspirations in the United States. 

The racing industry in the US generates more than US$12 billion in turnover annually. PointsBet aims to be at the centre of innovation and premium products within the US horse racing market. The addition of Premier Turf Club adds to the company’s growing portfolio of proprietary wagering products which already includes its fixed-odds sportsbook and online casino. 

Management commentary 

PointsBet USA CEO Johnny Aitken commented on the acquisition, saying: 

The combination of Premier Turf Club’s excellence in the space with PointsBet’s mature market Australian racing expertise favourably positions us as we prepare to enter the U.S. horseracing market. Today’s noteworthy acquisition complements our inhouse approach while growing our premier product suite, and we are excited to welcome Premier Turf Club to the PointsBet team.”

PointsBet share price snapshot

The PointsBet share price is currently trading around 19% higher in 2021 and has also climbed by 231% over the past 12 months. Based on its current valuation, PointsBet has a market capitalisation of around $2.5 billion.

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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 recommends 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 De Grey Mining Limited (ASX: DEG) share price has started the week positively.

In early trade, the gold explorer’s shares were up 5% to $1.56.

This latest gain left the De Grey Mining share price trading within touching distance of its record high of $1.67.

Why is the De Grey Mining share price rising?

Investors have been buying the company’s shares this morning following the release of an update on drilling activities at the Aquila zone at its Hemi prospect in Western Australia.

According to the release, the metallurgical testwork results from the Aquila zone have revealed high gold recoveries that are consistent with the positive results previously achieved from the Brolga zone.

This work was conducted on twelve individual composites representing oxide, transition and primary mineralisation and one bulk composite comprising primary mineralisation.

The samples were sourced from the top 200vm of the Aquila zone early in the drilling program. Additional samples of oxide, transition and primary mineralisation will be collected from the Aquila zone for further testwork as necessary and as studies progress.

“Encouraging”

De Grey Mining’s Managing Director, Glenn Jardine, appeared to be pleased with the results and described them as “encouraging.”  

He commented: “The new metallurgical testwork results on oxide, transition and primary mineralisation from the Aquila zone at Hemi are encouraging. These results from Aquila are consistent with the positive results previously achieved from the Brolga zone at Hemi.”

“Our ongoing metallurgical testwork program continues to provide confidence in the multiple pathways available to achieve high gold recoveries from Hemi and the regional deposits across the Mallina gold project.”

“Each of the three potential oxidation processes has delivered high gold recoveries for the Brolga and Aquila zones. Each of the oxidation processes will be carried forward into future testwork. Further testwork and trade off studies underway will enable the Company to optimise the various aspects of our metallurgical testwork program in terms of capital, operating costs, recoveries and operability,” he concluded.

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Motley Fool contributor James Mickleboro 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.

Moderna‘s (NASDAQ: MRNA) success story is all about its coronavirus vaccine. The product generated a whopping $1.7 billion in revenue in the first quarter and brought the company its first ever quarter of profitability. This is big — especially considering Moderna didn’t have any commercialized products until regulators authorized the vaccine in late December.

Investors are hoping this is just the beginning of Moderna’s coronavirus vaccine revenue growth. It should be. Experts say the virus is here to stay. And Moderna is ramping up to produce 3 billion doses next year. But one threat to revenue could be on the horizon. And it has to do with the potential waiving of vaccine patent protection. But is this really a threat? Let’s take a closer look.

A controversial proposal

This week, the U.S. said it would support a controversial proposal to waive vaccine patent rights to ramp up the production of doses globally. Now, all World Health Organization members must weigh in on the issue. Meanwhile, shares of Moderna slipped 8.6% this past week. Some investors were concerned that a potential approval of such a proposal would hurt Moderna’s ability to generate future revenue from its vaccine.

From an intellectual-property point of view, waiving patent rights may set an unwanted (at least by healthcare companies and their shareholders) precedent. That’s because it may make it easier for countries to repeat the move in the future. And in some cases, that could weigh on a company’s ability to generate revenue from a product.

But the Moderna story is a bit different. Here’s why: Moderna could easily hand over instructions to make its mRNA vaccine. In fact, last fall the company said it wouldn’t enforce its COVID-19 patents during the pandemic.

But this doesn’t mean anyone else can actually produce the vaccine. Imagine trying to make your grandmother’s signature cake recipe. But you don’t have access to the key ingredients, the right pan, or even a proper oven. That’s similar to the situation of potential vaccine makers if they hope to replicate the Moderna vaccine.

The CEO comments

In Moderna’s earnings report on Thursday, CEO Stephane Bancel said a possible waiver “doesn’t change anything for Moderna” and added:

There is no mRNA in manufacturing capacity in the world. This is a new technology. You cannot go hire people who know how to make the mRNA. Those people don’t exist.

Bancel is right. The skilled workers, the manufacturing processes and equipment, and the production scale-up are roadblocks potential producers are unlikely to move past. And even if a rival decided to dive in and give it a try, the effort would take an extraordinary amount of time and money. That’s because Moderna’s original effort took a lot of time and money too.

Moderna may look like an overnight success. After all, it brought the coronavirus vaccine to market in about nine months. But the company has been working on mRNA technology for years. And government investment of $2.5 billion wasn’t just an order for doses. Some of the funds helped Moderna develop the vaccine and build up manufacturing capacity over the past year.

So, for a patent waiver to actually hurt Moderna, governments would have to help potential vaccine makers by investing in manufacturing facilities and raw material production. They would have to help companies create processes and train workers. It seems very unlikely such a scenario will play out.

The potential patent waiver isn’t a threat to the Moderna vaccine. Whether it’s approved or not, Moderna is likely to remain in control of its product well into the future. And from what we can see so far, Moderna’s vaccine profit prospects remain strong. The company is in discussions for 2022 orders with all countries that ordered vaccines this year. And all of this means investors shouldn’t worry about any dips in the biotech company’s share price related to vaccine waiver news.

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

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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Moderna 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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Weekend Sunrise on Sunday to discuss why (some) inflation can be a good thing, the steady pre-Budget leaks, and what the ATO will be watching out for this tax time…

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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 Woolworths Group Ltd (ASX: WOW) share price is on the move on Monday morning.

At the time of writing, the retail conglomerate’s shares are up 1.5% to $40.00.

Why is the Woolworths share price rising?

Investors have been buying the company’s shares following the release of an update on its Endeavour Group plans.

According to the release, the Woolworths board has determined that a demerger is likely to enhance shareholder value over time and is preferable to other available options.

The company notes that the proposed demerger is the final step in a process that involves the combination of Woolworths Group’s drinks and hospitality businesses to form Endeavour Group through a restructure of Endeavour Drinks and subsequent merger with ALH Group.

What now?

If approved and implemented, the demerger will create two independent and leading ASX-listed companies.

Woolworths Group shareholders will retain all their existing Woolworths Group shares, with eligible shareholders receiving one new Endeavour Group share for every Woolworths Group share held at the demerger record date.

The company and its long-term joint venture partner, Bruce Mathieson Group, will each hold a 14.6% interest in Endeavour Group at the time of the demerger.

Woolworths Group’s directors are unanimously recommending that shareholders vote in favour of the proposed demerger resolutions. All directors intend to vote their own shares in favour of the demerger. An Independent Expert, Grant Samuel, has also concluded that the demerger is in the best interests of shareholders.

The company’s Chairman, Gordon Cairns, said: “The Woolworths Group Board believes that a demerger of Endeavour Group will enhance shareholder value and it will create two leading ASX-listed companies. We believe both businesses, post demerger, have strong future prospects and will benefit from greater simplicity, focus and ongoing partnership.”

What will Endeavour Group look like?

The release advises that the demerger is intended to enable Endeavour Group to realise its full potential with a clear purpose across Retail, Hotels and its broader business.

Post demerger, Endeavour Group will have an independent business strategy and a broad mandate for growth. It will also have the capacity and access to capital to pursue a range of investment and growth initiatives.

On a pro forma basis, Endeavour Group reported FY 2020 sales of $10.6 billion, EBIT of $693 2 million, and net profit before significant items of $328 million.

It has committed bank facilities of $2.5 billion with net debt (before lease liabilities) of $1.4 billion to $1.5 billion expected at the time of demerger. The bank facilities will be used to repay inter-company borrowings with Woolworths Group, and provide sufficient liquidity to support Endeavour Group’s funding requirements.

Like Woolworths, Endeavour Group will be sharing its profits with shareholders. It intends to follow Woolworths Group’s long established dividend policy which is initially expected to deliver a payout ratio of 70% to 75% of profit.

Endeavour Group CEO, Steve Donohue, said: “We believe that Endeavour Group’s long-term prospects are strong. We have assembled an experienced and proven team, have a leading store network, digital presence, and market position. Through living our purpose of creating a more sociable future together we see many opportunities to grow the business and create value for our shareholders.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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 Incitec Pivot Ltd (ASX: IPL) share price has come under pressure on Monday morning.

At the time of writing, the industrial chemicals company’s shares are down almost 7% to $2.51.

Why is the Incitec Pivot share price under pressure?

Investors have been selling Incitec Pivot’s shares following a further update on the Waggaman ammonia plant.

Last month the company revealed that the recommencement of operations at Waggaman was being disrupted due to issues with a dry gas seal failure and vibrations in the turbine.

At that point, it warned that the delay would impact its earnings before interest and tax (EBIT) by $36 million.

What’s the latest?

According to today’s update, the Waggaman plant re-started again in the middle of April as expected.

It was operating successfully at nameplate capacity for a total of two weeks before the plant unexpectedly tripped upon the failure of a vibration probe.

Following repairs, the subsequent re-start process was stopped on 8 May due to a coupling failure on the refrigeration compressor, upon which the plant was safely shutdown.

Management advised that bringing the Waggaman plant back to full operation is its highest priority, with all appropriate internal and external resources being deployed to achieve this.

Earnings impact

The release explains that based on current information, repairs and re-start are expected to take two to three weeks.

The additional impact to FY 2021 EBIT from the initial trip to the expected re-start of the plant is estimated to be between $33 million and $42 million. This represents between $26 million and $33 million on a net profit after tax basis.

In all other respects, Incitec Pivot’s business performance remains in line with previous update.

Despite today’s decline, the Incitec Pivot share price is still up a solid 11% since the start of the year.

More reading

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bubs Australia Ltd (ASX: BUB) share price is sinking on Monday morning.

In early trade, the infant formula company’s shares are down 5% to a multi-year low of 35.5 cents.

This latest decline means the Bubs share price is now down 40% year to date.

Why is the Bubs share price sinking?

Investors have been heading to the exits this morning following the release of an update from one of its larger rivals.

Earlier today, A2 Milk Company Ltd (ASX: A2M) downgraded its FY 2021 guidance for the umpteenth time due largely to weakness in the daigou channel and significant inventory issues.

It is now targeting revenue of NZ$1.2 billion to NZ$1.25 billion for FY 2021 with an earnings before interest, depreciation and amortisation (EBITDA) margin of 11% to 12% (excluding MVM transaction costs). At the mid point of its guidance range, this will be EBITDA of NZ$140 million, down 74.5% on FY 2020’s result.

This compares to its previously downgraded guidance of revenue of NZ$1.4 billion and an EBITDA margin of 24% to 26% (excluding acquisition costs). It is also a long way from its original guidance of “strong revenue growth” and an EBITDA margin of 30% to 31%.

Unfortunately, management warned that it could take some time to rebalance inventory levels and restore channel health.

Judging by the performance of the Bubs share price today, this appears to have spooked investors. They may now be concerned that its own recovery could take longer than hoped as well.

Bubs’ appointment

As a result of the above, news that the company has made a new executive appointment has been overshadowed and failed to have a positive impact on the Bubs share price today.

That appointment sees Fabrizio Jorge join the company as its new Chief Operating Officer.

According to the release, Mr Jorge brings 24 years of experience in the global consumer goods and dairy industry. This includes nutritional and specialty milk powders.

Most recently, he was the General Manager for Fonterra Brands for Thailand, Laos & Myanmar. Previously from 2016 through 2020 he held full P&L responsibility for Fonterra Australia’s Ingredients business with sales to over 50 export markets. This followed a long association with Fonterra going back to 2009 covering South East Asia sales, Fonterra’s South America Ingredients operations, and as Product General Manager for nutritional and specialty formulated milk powders based in New Zealand.

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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 BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Holders of dogecoin weren’t laughing as the price of the cryptocurrency tumbled after Elon Musk called it a “hustle” on a US comedy show.

The comment by the Tesla chief executive and crypto evangelist triggered a close to 30% crash in the value of dogecoin to a low of US47 cents.

It had been trading around US65 cents before the show, reported the Australian Broadcasting Corporation.

Dogecoin’s plunge is no laughing matter

Musk, who was impersonating a financial expert on a guest appearance of the highly-rated Saturday Night Live program, “struggled” to explain what dogecoin is.

He was asked this question several times, and each time he replied with simple facts about dogecoin without answering the question.

For instance, one of Musk’s replies was: “It’s the future of currency. It’s an unstoppable financial vehicle that’s going to take over the world”.

The dogecoin hustle is a difficult dance to master

Finally, when fellow cast member Michael Che asked if dogecoin was a “hustle”, Musk said “Yeah, it’s a hustle”.

Here’s another fun fact about dogecoin. It has surged more than 800% over the last month and is now the fourth largest digital currency.

Dogecoin’s market capitalisation is US$73 billion and it hit a high above US73 cents on May 6, according to CoinGecko.com.

Musk is dogecoin’s biggest supporter

Musk contributed to its meteoric rise with his mostly favourable Tweets on dogecoin, which started as a meme.

He’s trying to make it mainstream by accepting dogecoin payment for a trip to the moon aboard his SpaceX rocket.

Foolish takeaway

I think many people understand what cryptos are and can do, but struggle to put a value on the numerous coin offerings in the market.

Dogecoin is just one of many examples and it’s fall comes at a time when the world’s largest and best known crypto, bitcoin, is under pressure.

Talking about falling from grace, the Tesla Inc (NASDAQ: TSLA) share price has come into strife on its own recently.

The market wasn’t impressed with its record March quarter results. While Tesla’s earnings beat consensus expectations, the electric vehicle manufacturer made more money selling bitcoin than it did cars.

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