Tag: Motley Fool

The Magnum Mining and Exploration Ltd. (ASX: MGU) share price is one of the better performers on the ASX today. This comes after the company announced a successful placement and released its corporate presentation.

During early afternoon trade, the mineral miner’s shares are swapping hands for 17.5 cents, up 12.9%.

Details of the placement

Investors are buying Magnum shares in droves following the company’s two positive releases.

In its first announcement, Magnum advised it has raised $6 million through a private placement. The offer received strong interest from institutional and sophisticated investors, in which the company was forced to scale back applications.

Subject to shareholder approval, the placement will issue 40 million new ordinary shares at a price of 15 cents apiece.

Magnum directors, Matt Latimore and Don Carroll also took part in the capital raise, both investing up to $250,000 each.

Mr Dano Chan, Magnum managing director commented on the placement, saying:

I am very happy with the results Magnum has achieved in this private placement. It is a very successful one that means we can accelerate our activities to become a cash flow generating mine quickly with Direct Shipping Ore whilst working on our growth opportunities through production of HBI and Pig Iron for the US market.

The company stated it is working with New York-based advisors, RK Equity Advisors LLC and Pickwick Capital Partners LLC. It hopes to undertake a cross-listing on the NASDAQ International sometime in the second-half of 2021. This will allow investors in the United States to easily transact with the company.

The sole lead manager of the placement, Shape Capital Pty Ltd, will receive a 6% capital raising fee of all funds. In addition, 2 tranches will also be allocated to Shape that includes the following:

• 6 million unlisted options with a 3-year expiry at a strike price of 20 cents;
• 9 million unlisted options with a 3-year expiry at a strike price of 20 cents, subject to shareholder approval.

What did Magnum highlight in its presentation?

In further news boosting Magnum shares, the company underscored its strategy in becoming a leading iron ore exporter and green steel producer.

It explained that its well-positioned to capture domestic United States market demand. Furthermore, Magnum will seek to export iron ore and hot briquetted iron (HBI) to Asia Pacific markets during Q4 FY21.

In the year ahead, the company is looking at capitalising on the long-term opportunity for green steel. Its Green Hydrogen plant is scheduled to be built, with the production of HBI and pig iron slated for Q2 FY22. A recent agreement with M Resources was also executed to market Magnum’s iron ore and green steel products.

About the Magnum share price

Over the last 12 months, the Magnum share price has gained over 330%, with year-to-date performance sitting above 230%. The company’s shares reached an all-time high of 21 cents late last month.

Based on the current share price, Magnum has a market capitalisation of roughly $74 million.

More reading

• Here’s why the Magnum (ASX:MGU) share price is rising 6% today
• Why the Magnum (ASX:MGU) share price soared 16% today

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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The Afterpay Ltd (ASX: APT) share price has sunk below the iconic $100 level, down 4.50% at the time of writing to $95. Its shares are down more than 25% in the last 14 trading sessions to levels not seen since November 2020.

Why is the Afterpay share price free falling?

Watching a growth powerhouse such as Afterpay shed 25% in value in a short span of time can be a tough pill to swallow. But the weakness in the Afterpay share price extends beyond its operational and financial performance. Here are some reasons that might explain why the market darling is facing a reality check. 

A move away from BNPL shares 

The Afterpay share price is swimming against the tide as the buy now, pay later (BNPL) sector comes under fire. 

Large-cap BNPL shares including Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX: SZL) have been able to hold up relatively well year-to-date and stay within positive territory. 

While small-cap players that lack an international footprint including Splitit Inc (ASX: SPT), Openpay Group Ltd (ASX: OPY), Humm Limited (ASX: HUM) and Laybuy Group Holdings Ltd (ASX: LBY) are all approaching one-year lows, or a decline of more than 50% since their February highs. 

The broader weakness across BNPL shares signals a move away from the sector, with the smaller, less established companies bearing the brute of the selloff. 

Sharp fall in the ASX tech index 

To add further insult to injury, the S&P/ASX200 Info Tech (INDEXASX: XIJ) is down some 12% since last Friday. Conversely, the S&P/ASX 200 Index (ASX: XJO) is up 0.80% over the same period. 

There appears to be a clear rotation from tech and growth-related sectors into value and cyclical sectors such as financials and materials. 

Foolish takeaway

Afterpay is still a growth powerhouse with triple-digit growth across its key North American and European regions. However, the recent weakness and rotation of our tech shares combined with the significant underperformance in BNPL shares could spell trouble for the market darling. 

More reading

• Brokers name 3 ASX shares to buy now
• Sezzle (ASX:SZL) share price sinks 5%: Time to buy?
• Is the Afterpay (ASX:APT) share price a buy at $100?
• Laybuy (ASX:LBY) share price slides despite ‘record Mania sales’
• Why the Afterpay (ASX:APT) share price is sliding 5%

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 ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Humm Group Limited and Sezzle Inc. 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 Kinetiko Energy Ltd (ASX: KKO) share price is rocketing today. At the time of writing, shares in the gas explorer, based in Australia and operating in South Africa, are trading for 13 cents – up 18.18%.

Today’s price rise comes as the company announces it has acquired 100% of a South African gas project.

Let’s take a closer look at today’s update.

What’s up with the Kinetiko share price?

In a statement to the ASX, Kinetiko says it has acquired “the remaining 51% of Afro Energy (Pty) Ltd, making [Kinetiko] the 100% owner of all South African exploration rights and production approvals.” The previous joint-owner was Badimo Gas.

Afro Energy was founded 6 years ago as a joint venture between Kinetiko and Badimo. Kinetiko claims the ownership model was affecting the efficiency of the business and “causing delays in exploration and development programs.” The company believes these inefficiencies will be eliminated by the takeover. Investors seemingly agree, judging by the huge jump in the Kinetiko share price today.

Kinetiko will issue Badimo 595 million shares in its company in exchange for its share in Afro Energy. The statement also says the sale is at a discount due to debt owed to Kinetiko. Badimo will own 46% of share capital in Kinetiko once the transaction is completed, according to the company.

The deal is conditional on the following:

• Afro Energy holding 100% of the exploration rights at the Amersfoort Project.
• Kinetiko receiving ministerial consent for the purchase, under South African law.
• Meeting additional regulatory approvals and receiving adequate tax advice.

Management commentary

Kinetiko executive chair Adam Sierakowski said:

This union between the historic joint venture partners represents the achievement of a major milestone for the de-risking of the development of what is potentially the largest on shore gas project in South Africa. Years of significant cooperation between the Badimo and Kinetiko teams have enabled this acquisition to be realised and will result in delivering substantial shareholder value.

Badimo Gas executive chair Don Ncube added:

We have worked for over a decade to explore and develop a significant onshore non-fracking gas project in the Mpumalanga, Orange Free State and Kwazulu-Natal regions of South Africa. The creation of a project which delivers abundant clean energy will greatly assist South Africans whose economy faces an energy crisis.

This merged entity will now be able to raise capital for accelerated exploration, production and downstream development in international markets. Such foreign direct investment was previously not available to Badimo and this merger facilitates and reinforces the foreign direct investment initiative of our President. It will provide new employment opportunities and development of technical skills in the regions where such gas production is established. It will also contribute to the reduction of harmful polluting carbon dioxide emissions.

Kinetiko share price snapshot

Over the past 12 months, the Kinetiko share price has increased by an amazing 233%. It reached a 5-year record of 16.5 cents in December last year.

Kinetiko has a market capitalisation of around $65 million.

More reading

• A2 Milk (ASX:A2M) share price falls as China suspends dialogue
• Why Adore Beauty, Appen, HUB24, & News Corp shares are charging higher
• Here’s why the Noxopharm (ASX:NOX) share price is flying 16% today
• The Cannindah (ASX:CAE) share price is up 6% today. Here’s why
• Here’s how much Macquarie’s (ASX:MQG) dividend is worth now

Motley Fool contributor Marc Sidarous 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 A2 Milk Company Ltd (ASX: A2M) share price is taking a hit on the ASX, down 3.10% at $7.20 at yesterday’s close and falling again in trade today. 

It’s the same story for other ASX companies with major trade deals in China as the People’s Republic suspends all talks with Australian trade and economic officials, including ministers.

Shares in Treasury Wine Estates Ltd (ASX: TWE), heavily engaged in trade with China, and others including Blackmores Limited (ASX: BKL), Bubs Australia Ltd (ASX: BUB) are all falling.

Let’s take a closer look at the developments and what they mean for the A2 milk share price, and others.

China suspends all activities under China-Australia Strategic Economic Dialogue

In a rare public statement, issued on Thursday, the Chinese National Development and Reform Commission said it would suspend indefinitely all activities under the China-Australia Strategic Economic Dialogue.

Citing Australia’s “Cold War mindset” and “ideological discrimination”, the Chinese agency took the dramatic step of ending all talks with Australian economic and trade ministries, effective immediately.

The move is the latest by China in the ongoing trade dispute between the East Asian giant and Australia. China has placed tariffs on Australian wine, barley, and beef, and blocked the importation of all Australian coal. Australia has passed foreign interference laws, blocked Chinese state-owned Huawei from accessing Australia’s 5G network, cancelled the Victorian government’s Belt and Road MoU with China and led the charge for an independent inquiry into the origins of the virus that causes COVID-19.

Companies like Treasury Wines have suffered greatly under the Chinese measures. While China has not targeted dairy, the A2 Milk share price has been suffering under Australia’s border closures. When the borders open, fears the China market may not be the same could be exacerbated by the recent developments.

The trade concerns have been simmering for some time now. As far back as May 2020, Australian ministers admitted their Chinese counterparts were not even returning their phone calls.

A2 Milk share price falls

So, could fears over Australia’s trade relations with China not returning to normal be impacting the A2 Milk share price?

A2 Milk’s premier sales product is its infant formula. In its half-year report for FY19 (pre-pandemic), the powdered product made up around 82% of all sales. Just under half of sales went directly to Asia. Sales in Australia and New Zealand were spurred on by the daigou market, which then on-sold the products to China.

A suspension of that trade and uncertainty over Sino-Australian relations is likely to take its toll on the A2 Milk share price, along with Blackmores, Bubs, and others highly exposed to the Chinese market.

But while China has put tariffs on many Australian industries, there is one sector it relies heavily upon and has not restricted: iron ore.

BHP Group Ltd (ASX: BHP), the largest iron ore exporter in Australia to China, is currently trading at $49.96, up 16% year-to-date.

At the time of writing, is A2 milk share price is trading at $7.13, down $39% since the start of 2021.

More reading

• Why ASX miners are cheering record high shipping costs
• Top brokers name 3 ASX shares to buy today
• The ASX 200 is within an arms reach of all-time record highs
• These ASX uranium shares are surging this year. Here’s why
• Is it time to give the A2 Milk (ASX:A2M) share price another chance?

Marc Sidarous 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, Blackmores Limited, and Treasury Wine Estates Limited. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing, the benchmark index is currently up 0.3% to 7,082.5 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Adore Beauty Group Ltd (ASX: ABY)

The Adore Beauty share price is up over 8% to $4.02. Investors have been buying the online beauty retailer’s shares following the release of clarification on its active customer numbers. The Adore Beauty share price crashed lower on Thursday after it revealed that active customers were 687,000. This was down from 777,000 at the end of the first half. However, it turns out that this number is reflective of a 9-month period, rather than a 12-month period. Therefore, there was actually a 69% increase when compared to the 9 months to 31 March 2020.

Appen Ltd (ASX: APX)

The Appen share price has bounced back from yesterday’s selloff with a gain of 5% to $12.23. Mixed messages from a presentation on Thursday led to the Appen share price crashing 21% lower. This morning Bell Potter retained its hold rating but slashed its price target by 32% to $13.25. While this is a huge cut, it is still higher than where its shares trade today.

Hub24 Ltd (ASX: HUB)

The HUB24 share price is up 5% to $23.94. The wealth management platform provider’s shares came under pressure on Thursday amid concerns over AMP Limited (ASX: AMP) cutting the price of its platform. However, its shares are bouncing back today after Citi suggested that the action will not result in a price war. It also believes HUB24 will not lose market share to AMP due to the quality of its platform.

News Corp (ASX: NWS)

The News Corp share price is charging 4% higher to $32.02. This follows the release of a strong third quarter result this morning. According to the release, the media company has continued its impressive recovery during the quarter. For the three months ended 31 March, News Corp reported revenue growth of 3% and EBITDA growth of 23%. On the bottom line, the company posted a third quarter profit of $96 million. This compares to a loss of $1 billion a year earlier.

More reading

• ASX 200 up 0.45%: Macquarie full year results & REA Group Q3 update
• Brokers name 3 ASX shares to buy now
• News Corp (ASX:NWS) share price rises on latest results
• Why the Adore Beauty (ASX:ABY) share price is rebounding 7% today
• Appen (ASX:APX) share price: Is the disruptor becoming the disrupted?

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 Appen Ltd and Hub24 Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia has recommended Hub24 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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Noxopharm Ltd (ASX: NOX) shares are having a bumper end to the week after the company released a market update this morning. At the time of writing, the Noxopharm share price is storming 16.49% higher to 56.5 cents.

In earlier trade, the company’s shares reached an intraday high of 58 cents before retreating to their current level.

Here’s what Noxopharm announced and why shares in the company are flying.

What’s driving the Noxopharm share price?

The Noxopharm share price is shooting the lights out today after the company provided an update regarding its flagship Veyonda drug candidate.

According to the update, Noxopharm’s CEP-2 study will commence shortly. The CEP-2 study will be testing the chemo-enhancing effect of the company’s Veyonda drug candidate in conjunction with low doses of chemotherapy.

Following positive outcomes of its CEP-1 study, the new study will see higher dosages of Veyonda used. The CEP-2 study will involve 40 patients with a range of soft tissue sarcomas using Veyonda/doxorubicin as first-line therapy.

In further news boosting the Noxopharm share price, the company noted that the study will help it achieve its ultimate goal of seeing Veyonda used as a standard booster for all major forms of cancer therapy.

The healthcare company also highlighted its strong cash position, after raising $23 million in capital in December 2020. In addition, the company announced it has appointed a contract research company to oversee the study.

More on Noxopharm

Noxopharm is an Australian clinical-stage drug development company focused on its Veyonda drug candidate. Veyonda (formerly known as NOX-66) is a dual-acting cytotoxic and immune-oncology drug candidate designed to enhance the effectiveness of traditional chemotherapy.

Veyonda acts by using the body’s immune cells to attack cancer cells that survive initial treatment. According to Noxopharm, Veyonda appears to work across a broad spectrum of cancers. In addition to cancer, Veyonda has also undergone studies for its effectiveness against long-term septic shock symptoms resulting from infections and viruses such as COVID-19. 

The company sees a major commercial opportunity for Veyonda to be used as a booster for all four major forms of cancer therapy. These include chemotherapy, external radiotherapy, internal radiotherapy and checkpoint inhibitor therapy.

Earlier this year, Veyonda was granted approval from the United States Food and Drug Administration (FDA). The Investigational New Drug (IND) approval allows Noxopharm to trial Veyonda in combination with other therapies. Noxopharm received encouraging outcomes from its CEP-1 pilot study earlier this year.

Noxopharm share price snapshot

Over the past year, Noxopharm shares have soared by 228%. Year to date, the company’s shares have gained around 15%. Based on the current share price, Noxopharm has a market capitalisation of around $135 million.

More reading

• The Cannindah (ASX:CAE) share price is up 6% today. Here’s why
• Here’s how much Macquarie’s (ASX:MQG) dividend is worth now
• Ethereum breaks new record highs as Bitcoin slips…which one to buy?
• ASX 200 up 0.45%: Macquarie full year results & REA Group Q3 update
• Here’s why the QuickFee (ASX:QFE) share price is zooming 28% higher

Motley Fool contributor Nikhil Gangaram 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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Cannindah Resources Ltd (ASX: CAE) shares are rocketing today after news of the company’s Piccadilly gold project was released.

The Cannindah share price shot up to an intraday high of 11 cents in opening trade, 37.5% higher than yesterday’s close. Shares in the gold miner have retreated since then and are currently trading at 8.5 cents, a 6.2% gain.

Let’s take a look at the latest announcement from the exploration and resource development company.

Striking gold at Piccadilly

Cannindah announced it has discovered significant gold trenches at the Piccadilly project, extending the area of interest within its existing mining lease. The project is about 60km north of Charters Towers in Queensland.

The company said the most recent results were from a drill program completed at Piccadilly last month and once more demonstrated the site’s potential.

Some 1-metre-wide channels returned results of up to 27.5 grams of gold per tonne, with other wider zones containing up to 29 grams of gold per tonne.

In past assay results, the Piccadilly project was found to contain high-grade gold samples, with the highest found to date being 79.4 grams of gold per tonne.  

The miner undertook the most recent drilling program to find the distribution of surface gold in the central and eastern sections of the Piccadilly Mining Lease.

It excavated 26 trenches at a 1.5 metre depth in an area of historic shallow mining. There were 1,500 metres worth of trenches in total.

Cannindah share price snapshot

The boost to the Cannindah share price on the back of the company’s latest assay results might see it reaching a milestone. If today’s gains hold until close, it will see Cannindah shares closing at their highest price since 2012.

Currently, the Cannindah share price is up 190% year to date. It’s also up 770% over the last 12 months.

The company has a market capitalisation of around $41 million, with approximately 518 million shares outstanding.

More reading

• Here’s why the Noxopharm (ASX:NOX) share price is flying 16% today
• Here’s how much Macquarie’s (ASX:MQG) dividend is worth now
• Ethereum breaks new record highs as Bitcoin slips…which one to buy?
• ASX 200 up 0.45%: Macquarie full year results & REA Group Q3 update
• Here’s why the QuickFee (ASX:QFE) share price is zooming 28% higher

Motley Fool contributor Brooke Cooper 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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It’s been a blockbuster week for ASX bank shares. We saw 3 of the four major banks all report half-year earnings this week, Commonwealth Bank of Australia (ASX: CBA) being the exception. All three have reported major boosts in earnings and profits, and a robust increase in banking dividends to boot. Well, today, we have another ASX bank that’s reported its earnings. Macquarie Group Ltd (ASX: MQG) isn’t officially one of the big four. But is sometimes referred to as ASX’s fifth bank for its size and clout in the ASX financial space.

Although its banking activities are far less prevalent than the other banks, Macquarie is still a popular share for ASX investors. And it didn’t disappoint this morning. Macquarie shares are, at the time of writing, up 0.7% to $160.09 a share. That’s just shy of the bank’s all-time high.

Investors have evidently been impressed with what Macquarie had to offer this morning. As we reported earlier, the bank reported a 10% rise in profits to $3.02 billion, which included a 39% jump in its trading and investments division.

But there was a nice surprise in the dividend department as well. Macquarie announced that the company’s final dividend would come in at $3.35 a share. That’s a boost of 86% over last year’s level.

So how much is Macquarie’s dividend now worth?

Macquarie announced beefed-up dividend

Well, on the current share price, the company has a trailing dividend yield of 1.97%. That comes from the bank’s last 2 dividends, which came in at $1.80 and $1.35 per share respectively, both paid out last year with 40% franking. Both of those dividends represented big downgrades from the prior year when the bank paid out $3.60 and $2.50 respectively.

So with Macquarie’s newly announced dividend, its trailing 12-month dividend will be $4.70 per share. That would give us a trailing yield on current pricing of 2.94%.

If we annualise Macquarie’s new dividend, we would get a potential forward dividend of $6.70 per share, which would represent a forward yield of 4.19%.

That’s not quite as high as the other ASX banks. But investors have rarely priced Macquarie at a similar yield level to the other big four banks anyway. Even so, today Macquarie has beefed up its income chops substantially and has gone a long way in restoring its dividend to a pre-COVID level. No doubt shareholders will be pleased with that development.

More reading

• ASX 200 up 0.45%: Macquarie full year results & REA Group Q3 update
• Macquarie (ASX:MQG) share price on watch after posting $3bn profit and 86% dividend increase
• 5 things to watch on the ASX 200 on Friday
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs
• Why the Afterpay (ASX:APT) share price is sliding 5%

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie 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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Ethereum (CRYPTO: ETH), or Ether if you prefer, is once again outperforming Bitcoin (CRYPTO: BTC) today.

Ether is up just under 1% over the past 24 hours, currently trading for US$3,504 (AU$4,492). That’s down slightly from the all-time high of US$3,607 that Ethereum breached earlier in the day.

Bitcoin headed the other way, slipping just under 1% in 24 hours to US$56,579. Bitcoin hit its own all-time high of US$64,829 in mid-April.

Bitcoin remains a high-returning investment in 2021, with the price up 94% year to date. That gives the world’s biggest crypto a market capitalisation of US$1.05 trillion, according to data from CoinDesk.

While that’s a stellar return by any standards, investors in Ether have done far better.

So far in 2021, Ethereum has gained 374%. That’s seen the cryptocurrency’s market cap grow to US$402 billion, steadily closing the gap with Bitcoin.

What’s the difference between the 2 digital tokens?

With some 7,000 or more cryptocurrencies in virtual circulation, it’s hard to keep track of even of a small fraction of them, let alone stay atop of what their primary functions are. Though, our task is made a tad easier in that many cryptos have little to no real function at all.

But Bitcoin and Ether, the world’s top 2 cryptos, do have very different purposes.

Ether is a digital token used to verify and record transactions of all sorts on Ethereum, the world’s most popular blockchain.

Bitcoin, on the other hand, is increasingly used in purchases and money transfers, as well as long-term holdings.

Explaining the difference between the 2 cryptos, Pat LaVecchia, Oasis Pro Markets CEO said (quoted by Bloomberg), “Ether is a blockchain platform that functions like the Apple store or Android app store. Bitcoin is a commodity like gold, or a store of value.”

Why buy Bitcoin or Ether?

Phil Bonello is the director of research at Grayscale Investments. The company’s trusts are involved in both Bitcoin and Ether.

According to Bonello, “Investors often look at Ethereum as a growth-type investment, making a bet on the continued development of the decentralized ecosystem built on Ethereum.” He added that investors, “sometimes consider Ether as a way to get index exposure to all the development occurring on Ethereum.”

Bitcoin, on the other hand, is arguably likely to outperform Ether in any future downturns.

As Bloomberg reports, “With a slide of about 20% in the Bloomberg Galaxy Crypto Index, there’s notably more downside risk to Ether than its larger compatriot, [Cornerstone Macro] strategist Benson Durham said.”

Durham added that, “With a rally of the same magnitude (so up 20%) you don’t really get the concomitant upside to Ether compared to Bitcoin. Ergo the convexity, if you will, favours Bitcoin.”

The case for both

If you’re looking to invest in cryptos, you may wish to look beyond Ether, Bitcoin, or any single token. Just as with your ASX shareholdings, there’s a good case for some diversification within a crypto portfolio.

As Cornerstone’s analysts wrote:

Given that there are diversification opportunities among digital coins themselves, we should consider a small basket of them, rather than just Bitcoin alone, when we assess whether some allocation to crypto assets can reduce portfolio volatility alongside traditional assets.

Whether you already are investing in Ether, Bitcoin or other cryptos – or maybe just considering it – it’s important not to lose sight of the massive historic volatility displayed by almost every single crypto.

Just as prices can rise by hundreds of percentage points in weeks or even days, they can also significantly crash just as quickly.

More reading

• Move over Bitcoin! Ethereum prices are rising fast
• It’s not just Bitcoin (CRYPTO:BTC) driving ASX investor interest
• Are Coinbase (NASDAQ:COIN) shares worth a look?
• Warren Buffett hates Bitcoin. Here’s why
• How Tether is fuelling the Bitcoin price rally

Bernd Struben 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 Apple and Bitcoin and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. The benchmark index is currently up 0.45% to 7,092.5 points.

Here’s what is happening on the market today:

Macquarie full year results

The Macquarie Group Ltd (ASX: MQG) share price is rising on Friday after the release of its full year results. For the 12 months ended 31 March, the investment bank reported a 10% increase in net profit to $3.02 billion. This allowed the company to increase its final dividend by 86.1% to $3.35 per share. No guidance was given for the year ahead.

REA Group Q3 update

The REA Group Limited (ASX: REA) share price has been a positive performer on Friday. This follows the release of the property listings company’s third quarter update this morning. According to the release, REA Group delivered revenue growth of 8% to $225.6 million and EBITDA growth of 13% to $123.3 million. This means its EBITDA is now up 10% year to date.

News Corp update

The News Corp (ASX: NWS) share price is charging higher following the release of its third quarter results. The media company continued its solid recovery during the quarter, reporting revenue growth of 3% and EBITDA growth of 23%. On the bottom line, News Corp reported a third quarter profit of $96 million. This compares to a loss of $1 billion a year earlier.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Appen Ltd (ASX: APX) share price with a 5% gain. This follows a ~20% decline on Thursday following the release of a presentation. The worst performer has been the Pro Medicus Limited (ASX: PME) share price with an 8% decline. This is despite there being no news out of the healthcare technology company. However, a number of high PE shares are under pressure today.

More reading

• News Corp (ASX:NWS) share price rises on latest results
• REA (ASX:REA) share price on watch after third quarter results
• Appen (ASX:APX) share price: Is the disruptor becoming the disrupted?
• Macquarie (ASX:MQG) share price on watch after posting $3bn profit and 86% dividend increase
• 2 stellar ASX growth shares rated as buys

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 Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Pro Medicus Ltd. and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 up 0.45%: Macquarie full year results & REA Group Q3 update appeared first on The Motley Fool Australia.

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