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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.

Tesla Inc (NASDAQ: TSLA) was up against some significant headwinds last year. Not only did the automaker face tough year-ago comparisons when soaring Model 3 deliveries led to 50% growth in vehicle deliveries, but it had to pause manufacturing in the spring of 2020 as it dealt with lockdowns related to COVID-19. Yet the electric vehicle maker still managed to grow vehicle deliveries 36% for the year.

Though Tesla’s 2020 performance was impressive, it might look modest in comparison to the automaker’s 2021 sales. The current consensus estimate for Tesla’s vehicle deliveries this year is 850,000 units, up from about 500,000 in 2020. Indeed, one of the most recent analyst forecasts calls for 929,000 deliveries this year, which would mark growth of more than 85% year over year. 

Why deliveries should skyrocket

It’s not too surprising to see analysts so bullish on Tesla’s deliveries in 2021. The automaker has been making remarkable progress on expanding its production capacity. Going into 2020, Tesla had installed tooling at its factories for annualized production capacity of 640,000 units. By the end of the year, Tesla’s installed annualized production capacity had reached 1.05 million electric vehicles.

Yet even these figures don’t fully capture Tesla’s manufacturing momentum. The company also had two production lines under construction at the end of the year — a Model Y production line at its new factory in Berlin, Germany, and another one at its new factory in Texas. Tesla said in its fourth-quarter update that it expects to begin vehicle production at these new factories this year.

What to watch

Fortunately, Tesla investors will soon get better insight into whether analysts’ optimistic outlook for the automaker’s deliveries is realistic. The company will release its first-quarter financial results on April 26. Tesla’s updates usually provide insight into recent delivery trends, demand, and more.

We already know Tesla kicked off the year with strong first-quarter deliveries, as it announced its quarterly deliveries ahead of its earnings report. Tesla delivered approximately 185,000 vehicles, up 109% year over year. However, other information in the earnings report should still be helpful to investors when assessing the company’s growth potential. First and foremost, investors should look for any commentary from management on demand for its electric vehicles. Obviously, Tesla needs more than strong growth in production; it needs similarly high levels of demand, too.

In addition, investors can look to see if Tesla provides an updated view for its deliveries this year. So far, the automaker has only said that it expects total 2021 deliveries to increase more than 50% compared to 2020 deliveries.

Tesla will report its first-quarter results after market close on Monday, April 26.

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

More reading

• Top fundie picks this ASX 200 resource share for the EV revolution
• Why Tesla stock soared higher on Tuesday
• The stock that I’d hold for the next 5 years: fundie
• Tesla and Palantir were some of the most popular US shares last week
• Tesla stock: headed to $1,071?

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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A veteran stock picker is feeling anxious about how the market is behaving, fearing massive losses for retail investors.

Forager Funds chief investment officer Steve Johnson said this week that share markets had “a crazy first quarter”.

“You’re not seeing dramatic moves in the overall index levels, but some of last year’s really big winners have been hammered so far this year.”

He told the Forager video that currently, it wasn’t uncommon to see a share price rocket up 100% then get hammered down 50% within a few weeks.

“This sort of market activity, it does worry me and it makes me nervous.”

An example of the craziness

Forager analyst Chloe Stokes named retailer Stitch Fix Inc (NASDAQ: SFIX) as an example of the vomit-inducing ride some stocks have endured.

“During COVID, the share price was down as low as US$11. And then back in December, it was trading at US$35 before they released earnings for their first quarter.”

The quarterly results were “pretty impressive”, according to Stokes.

“They had good revenue growth and good guidance and a lot of growth in new customers. The stock rose very significantly on the day and continued rising over the next 2 months. It got as high as US$113 at the end of January.”

But from that peak, the stock started tumbling, apparently for no significant reason.

“And there was another significant dip when they released their second quarter earnings, where revenue growth wasn’t quite what the market was expecting, and they lowered their guidance for 2021.”

Stitch Fix shares now trade for US$46.86.

“The stock is now less than half of what it was… We were kind of loosely interested in the stock back before the crazy price rise. And it’s getting to the levels where we might start looking at it again.”

Rollercoaster rides make Johnson sick

According to Johnson, investors should be worried because “there’s a lot of stuff going on under the surface” currently in the market.

“It is not normal for large numbers of stocks to be doubling and then halving,” he said.

“I think you’re seeing a lot of leverage, like these [collapsed] hedge funds that we’ve seen. I think a lot of retail leverage as well, which is a fairly new phenomenon of people being able to buy options and CFDs and things at a retail level.”

Social trading, which really came into public consciousness during the GameStop Corp (NYSW: GME) blow-up in January, is also contributing to the chaos.

“Anyone that’s seen the Wolf of Wall Street knows about the ‘pump and dump’, where you create this excitement about a stock and then sell your stock into it… These new social media platforms like Twitter Inc (NYSE: TWTR) and Reddit have created the ability to do that on a scale that we haven’t seen before,” Johnson said.

“It’s got me quite nervous that these are not isolated incidents. They’re all related to the same thing.”

Buying opportunities

Stokes took the alternative view that the volatility of some stocks has presented investors with golden buying opportunities.

“From my perspective, it’s been great. It’s meant we could buy Farfetch Ltd (NYSE: FTCH) back below US$20 in June last year, we sold it above US$60, and now we’re getting a chance to buy it back again at significantly lower prices.”

Stokes’ team also doubled its money in a few days in January when its Bed Bath & Beyond Inc (NASDAQ: BBBY) holding got indirectly caught up in the GameStop furore.

More reading

• GameStop looks to become debt-free with early debt retirement plan
• Tesla and Palantir were some of the most popular US shares last week
• Here’s why Microsoft just spent $19.7 billion to acquire nuance communications
• Better buy: Amazon vs. GameStop
• GameStop names activist investor Ryan Cohen as chairman of the board

Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Twitter. 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 Bank of Queensland Limited (ASX: BOQ) share price will be one to watch on Friday.

This follows a positive reaction to its half year results by one leading broker this morning.

How did Bank of Queensland perform in the first half?

For the first half of FY 2021, Bank of Queensland reported a 9% increase in cash earnings after tax to $165 million.

Management advised that this was driven by balance sheet growth, disciplined expense management, lower loan impairment expense, and improved net interest margin (NIM).

In respect to the latter, Bank of Queensland finished the period with a NIM of 1.95%. This was up 3 basis points and was driven largely by lower funding costs from reduced deposit rates and lower wholesale funding costs.

This strong form allowed the bank to declare a 17 cents per share interim dividend. This was up 11 cents per share from the prior corresponding period.

What did brokers think?

One broker that was pleased with the result was Goldman Sachs. In response to the release, this morning the broker retained its buy rating and lifted its price target to $9.83.

Based on the latest Bank of Queensland share price, this price target implies potential upside of 11.5% over the next 12 months.

And with Goldman Sachs forecasting a 4% fully franked dividend yield in FY 2021, this potential return stretches to ~16%.

Why is the Bank of Queensland share price in the buy zone?

Goldman was pleased with the result and has upgraded its estimates to reflect a number of trends.

It explained: “We upgrade our FY21/22E/FY23E cash EPS by 4.7%/2.2%/-2.9%, driven by i) a better lending momentum, ii) lower BDDs; partially offset by iii) weaker non interest income; and iv) slightly higher cost growth in the outer years.”

The broker also believes that management’s guidance for the full year is conservative and expects the bank to outperform it.

Goldman said: “Our analysis suggests that BOQ’s 4% FY21E revenue guidance implies average interest earning assets fall 1% hoh in 2H21E. Given momentum in the business is accelerating, we think this is too conservative and therefore forecast 2H21E sequential average interest earning asset growth of c. 2.5%, which drives FY21E revenue growth of 6%. We also see potential upside risk to BOQ’s ‘broadly flat’ 2H21E sequential NIM guidance. Coupling this with our TP of A$9.83 offering 16% TSR over the next 12 months, we reiterate our Buy recommendation.”

This could make it well worth consider Bank of Queensland shares at the current level.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises, Zip sinks, BOQ reports
• ASX 200 flat: Zip raises $400m, Bank of Queensland results, Regis crashes
• Bank of Queensland (ASX:BOQ) share price on watch after solid half year update
• 5 things to watch on the ASX 200 on Thursday

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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If you’re an income investor in search of dividend shares, then look no further.

Listed below are two ASX dividend shares that are highly rated. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.

This company appears well-positioned to grow its dividend at a consistently solid rate long into the future. This is thanks to its focus on high quality social infrastructure properties.

These properties, such as childcare centres and government properties, have specialist use, limited competition, and low substitution risk. They also come with ultra long leases and fixed rent reviews.

For example, at the end of the first half, the Charter Hall Social Infrastructure REIT had an occupancy rate of 99.7% and a weighted average lease expiry (WALE) of 14 years.

In FY 2021, the company intends to pay a distribution of 15.7 cents per unit to shareholders. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.9% yield.

Goldman Sachs is a fan of the company and has a conviction buy rating and $3.45 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider buying is Super Retail. It is the company behind retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

It has been a very positive performer during the pandemic. In February, Super Retail reported a 23% increase in half year sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

Management advised that this was driven by like for likes sales growth, strong online sales, and margin expansion.

Goldman Sachs is also a fan of Super Retail and expects it to have a strong second half. So much so, the broker believes the company will be in a position to pay shareholders a special dividend with its full year results.

Its analysts are forecasting an 81 cents per share fully franked dividend for FY 2021. Based on the latest Super Retail share price, this represents a 6.8% yield.

Goldman currently has a buy rating and $15.00 price target on its shares.

More reading

• 2 ASX dividend shares to buy for income today
• 2 buy-rated ASX dividend shares with generous yields
• 2 high yield ASX dividend shares rated as buys
• 2 ASX dividend shares rated as strong buys by brokers
• 3 ASX dividend shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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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At the small end of the market, there are a number of ASX shares with the potential to grow strongly in the future.

Two that should be on your watchlists are listed below. Here’s what you need to know about them:

MNF Group Ltd (ASX: MNF)

The first small cap ASX share to watch is MNF Group. It specialises in Voice over Internet Protocol (VoIP) technology, which converts analogue audio into digital data that can be transmitted over the internet. This technology is used to support services like teleconferencing, online business meetings, and digital data transfers.

MNF looks well-placed for growth over the long term thanks to a number of favourable tailwinds. These include the NBN rollout and the work from home initiative.

In addition to this, when MNF released its half year results in February, management revealed plans to expand into the Asian market. At that point, it was on the cusp of entering Singapore and was looking at a further six markets in the region.

If these expansions are a success, then they could be a big boost to its recurring revenues, which are growing fast. For example, at the end of December, recurring revenues had increased 15% to $55.7 million.

Morgan Stanley is a fan of the company. It currently has an overweight rating and $6.30 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX share to watch is Volpara. It is the healthcare technology company behind the VolparaEnterprise software solution. This is a cost-effective, mission-critical tool that helps clinics deliver the highest-quality breast imaging services.

This software has resonated extremely well with radiologists, leading to consistent market share gains in the US breast screening market over the last few years. In fact, at the end of the third quarter of FY 2021, Volpara reported that its software was used in over 27% of screenings for women in the United States.

The company also has a number of complementary solutions that work alongside VolparaEnterprise. These add-ons are expected to drive a significant increase in average revenue per user (ARPU) in the future.

Morgans is positive on Volpara. It currently as an add rating and $1.94 price target on its shares.

More reading

• 4 exciting small cap ASX shares to watch
• 2 rapidly growing small cap ASX shares to buy
• 3 ASX shares to buy in April 2021
• 2 fast-growing small cap ASX shares to watch
• 2 stellar ASX tech shares to buy in April

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 VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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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There are a few compelling ASX dividend shares that have bene rated as buys by brokers.

Brokers are constantly on the lookout for opportunities and there are a few dividend shares with high yields that have been picked as buys.

These two businesses are two of the most-liked ASX dividend shares right now:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Dalrymple Bay Infrastructure, which owns the Dalrymple Bay Terminal, provides its customers with safe and efficient port infrastructure and services. It owns the world’s largest metallurgical coal export facility and it serves as a global gateway from the Bowen Basin and it’s an important link for the global steelmaking supply chain.

It’s rated as a buy by at least three brokers, including Morgans. The broker’s price target on Dalrymple Bay Infrastructure is $2.57.

Morgans expects the infrastructure business to pay a distribution of $0.18 per share in FY21. At the current Dalrymple Bay Infrastructure share price, it has a forward yield of 7.9%.

The broker thinks that the ASX dividend share’s earnings can grow as it raises its charges for customers.

Anthony Timbrell, managing director and CEO of Dalrymple Bay Infrastructure recently said:

As the world’s largest metallurgical coal export facility, DBI is ideally placed to leverage the strong outlook for global steelmaking as we are fully contracted on a 100% take-or-pay basis until June 2028. This also means we are not exposed to daily volume or commodity price volatility.

DBI forecast funds from operations (FFO), underpinned by cash flow stability and an investment grade balance sheet, should support a sustainable distribution going forward. The company remains on track to pay $45 million in distributions for the six months ended 30 June 2021.

Australian Finance Group Ltd (ASX: AFG)

Australian Finance Group is one of the largest mortgage broking businesses on the ASX.

It has been operating for 26 years, with around 3,000 brokers, more than 200 staff and it works with over 70 lenders.

The broker Macquarie Group Ltd (ASX: MQG) is one of several that rate this ASX dividend share as a buy. It has a price target on the company of $3.06.

Looking at the FY21 expectations, the Australian Finance Group share price is valued at 15x FY21’s estimated earnings with a grossed-up dividend yield of 6.4%.

The mortgage broker is seeing a lot of demand for its services as the housing market booms. Australian Finance Group’s net interest margin (NIM) is increasing too.

In the FY21 half-year result its residential trail book increased by 5% to $160 billion. Underlying cash profit increased by 41% to $24.88 million, whilst earnings per share (EPS) grew 9% to 9.2 cents.

Management said the business was heading into the second half of FY21 with a strong balance sheet, no debt, a solid pipeline of lodgements and good cashflow.

More reading

• Leading broker names its best ASX share ideas for April
• Brokers rate these 2 top ASX shares as buys

Motley Fool contributor Tristan Harrison 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) overcame a weak start to storm notably higher. The benchmark index rose 0.5% to 7,058.6 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.2% higher this morning. This follows a very strong night of trade on Wall Street, which saw the Dow Jones rise 0.9%, the S&P 500 climb 1.1%, and the Nasdaq storm 1.3% higher. Exceptional US economic data sent shares hurtling higher.

Oil prices rise

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 0.3% to US$63.36 a barrel and the Brent crude oil price is up 0.45% to US$66.89 a barrel. Oil prices hit one-month highs after demand forecasts were upgraded.

Gold price storms higher

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a strong day after the gold price stormed higher. According to CNBC, the spot gold price is up 1.6% to US$1,764.70 an ounce. The precious metal was in demand with traders after bond yields retreated.

Bank of Queensland given buy rating

The Bank of Queensland Limited (ASX: BOQ) share price is in the buy zone according to analysts at Goldman Sachs. The broker was pleased with its half year results on Thursday and responded by retaining its buy rating and lifting its price target to $9.83. Goldman believes that Bank of Queensland’s guidance for the full year is conservative and expects the bank to outperform it.

Coca-Cola Amatil takeover update

The Coca-Cola Amatil Ltd (ASX: CCL) share price will be on watch today after providing an update on its takeover approach by Coca-Cola European Partners. According to the release, the New Zealand Overseas Investment Office has consented to the takeover. This means that all of the regulatory approval conditions have now been satisfied. Shareholders will now vote on the proposal at a special meeting this morning in Sydney.

More reading

• ASX 200 rises, Zip sinks, BOQ reports
• How pent-up demand could turbocharge ASX 200 energy shares
• What’s going on with the Rio Tinto (ASX:RIO) share price today?
• ASX 200 flat: Zip raises $400m, Bank of Queensland results, Regis crashes
• Why the Whitehaven Coal (ASX:WHC) share price is plunging 14%

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 S&P/ASX 50 index is home to 50 of the largest listed companies on the Australian share market.

This means the index hosts many of the highest quality and most well-known companies that the ANZ region has to offer.

While not all of the shares on the index are necessarily in the buy zone, two that could be are listed below. Here’s what you need to know about them:

Lendlease Group (ASX: LLC)

Lendlease is a global property and infrastructure company. Although its performance in recent years has been underwhelming, its outlook is becoming increasingly positive.

This is due to the divestment of its struggling engineering business and the announcement of a major new strategy. The latter is shifting its earnings mix and business model favourably. This appears to have positioned it perfectly for long term growth and should be supported by some major urbanisation projects. These include Thamesmead Waterfront in London and a partnership with Google in the San Francisco Bay Area.

Goldman Sachs is a fan of the strategy shift. It currently has a buy rating and $16.54 price target on the company’s shares. The broker believes that its shares could re-rate to higher multiples once it starts to successfully execute its new strategy.

Xero Limited (ASX: XRO)

Another ASX 50 share to consider buying is Xero. It is a leading cloud-based business and accounting software provider with a focus on small to medium sized businesses.

Thanks to the evolution of its platform over the last few years from an accounting solution into a full service small business solution, Xero has been growing at a rapid rate. This has continued in FY 2021 despite the pandemic’s impact on small businesses.

Goldman Sachs is also a fan of Xero and believes it still has a long runway for growth. This is due to the quality of its offering, the ongoing shift to cloud-based solutions, its global market opportunity, and burgeoning app ecosystem. The latter has been bolstered recently with a number of bolt on acquisitions. This includes Planday, Tickstar, and Waddle.

Goldman Sachs has a buy rating and $153.00 price target on its shares.

More reading

• 2 of the best ASX 200 blue chip shares to buy
• Leading brokers name 3 ASX shares to buy today
• ASX 200 down 0.3%: Webjet completes note offering, Xero pushes higher
• Why the Xero (ASX:XRO) share price can go even higher from here
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more

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 Xero. 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 S&P/ASX 200 Index (ASX: XJO) went up 0.5% today to 7,059 points.

Here are some of the highlights from the ASX:

Zip Co Ltd (ASX: Z1P)

Zip said that it had successfully priced its $400 million zero coupon senior unsecured convertible notes due 2028. The notes will mature on 23 April 2028 unless otherwise redeemed, repurchase or converted in accordance with their terms and conditions.

The conversion price of the notes is $12.39 per share, which represents a conversion premium of 35% over the reference share price.

Zip said that the buy now, pay later company will use the proceedings of the offering will be used for driving growth in core markets, expanding into new regions and for general corporate purposes.

The co-founder and chief operating officer Peter Gray said:

We are very pleased with the strong global demand for this offering. This transaction further diversifies Zip’s sources of capital and allows us to pursue our global growth aspirations while reducing potential dilution of existing shareholders.

Bank of Queensland Limited (ASX: BOQ)

The BOQ share price dropped around 0.7% today after the regional bank released its FY21 half-year result.

BOQ revealed cash earnings after tax increase of 9% to $165 million. However, cash earnings per share (EPS) only grew by 3% to 34.3 cents. Statutory profit grew by 66% to $154 million.

Management explained that the growth was driven by above system growth, a net interest margin (NIM) improvement, cost discipline and a strong capital position.

The ASX 200 share’s common equity tier 1 (CET1) capital ratio increased by 12 basis pointed to 10.3%. BOQ’s half-year dividend was increased by 11 cents per share to 17 cents per share.

Regarding the ME Bank acquisition, BOQ CEO and managing director George Frazis said:

The acquisition of ME Bank announced in February 2021 is on schedule, with integration planning well progressed and the regulatory approvals process underway. We anticipate the acquisition to be completed by the end of the our financial year. The acquisition is expected to be cash EPS accretive, including full run-rate synergies in the first year. The acquisition of ME Bank is a meaningful step in making BOQ Group a compelling alternative to the big banks. We are confident that our multi-brand, niche segment strategy will give us a competitive advantage and provide genuine choice to millions of Australians.

Transurban Group (ASX: TCL)

The Transurban share price finished flat today after giving its quarterly traffic numbers to the market.

During the three-month period to 31 March 2021, average daily traffic (ADT) increased by 1.1% compared to 2020 and decreased by 3.8% compared to 2019.

Traffic impacts across each of Transurban’s markets continue to vary.

Sydney ADT increased by 21.8% to 936,000. A large majority of this increase was down to traffic at the new assets of NorthConnex, M5 East and M8. Without those, traffic would have increased by 4.5%.

Melbourne ADT decreased by 15.2% to 675,000 transactions due to restrictions, according to Transurban.

Brisbane ADT went up by 3.3% to 403,000 trips despite brief lockdowns during the period.

North American ADT decreased by 26.9% to 101,000 trips.

Boral Limited (ASX: BLD)

The Boral share price ended slightly higher after announcing some potential divestment news.

The ASX 200 share said that as part of the review of its North American fly ash business.

The Boral CEO and managing director said:

We have conducted a detailed study of the US fly ash industry and remain confident in the long term demand dynamics for the industry, including significant incremental demand growth potential from the US government’s proposed new infrastructure program.

New opportunities for supply exist from harvesting landfills, imports and natural pozzolans, which we expect will more than offset the decline in fresh fly ash supply as the US transitions away from coal fired power generation. As we continue to build our alternative supply strategy, strategic alliances and opportunities for partnership will be considered in parallel with divestment options or continued ownership.

More reading

• How pent-up demand could turbocharge ASX 200 energy shares
• What’s going on with the Rio Tinto (ASX:RIO) share price today?
• 2 high quality ASX shares for your retirement portfolio
• Zip (ASX:Z1P) eyes potential stock and crypto trading services
• Top broker tips Zip (ASX:Z1P) share price to rocket higher

Tristan Harrison 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 owns shares of Transurban Group. 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 Invictus Energy Ltd (ASX: IVZ) share price has had a stunning day today. At the time of writing, Invictus shares are up 23.33% to 18 cents a share after closing at 16 cents a share yesterday.

Today’s share price appreciation is just the latest chapter in what has been a great year to own Invictus Energy shares. Twelve months ago, this company was sitting at a price of just 2 cents a share. That means that Invictus is now up 825% over the past year. Since 27 March 2020, this prospective oil driller has risen an incredible 1,750%. Even in 2021 so far, investors have enjoyed gains of 260%, including 50% since 30 March.

So why are Invictus shares pushing dramatically higher today?

Conviction for Invictus shares

Well, there is no major news or announcements out today that would be directly affecting Invictus shares. However, a lot has been happening at this company lately. 

Late last month, the company completed a share placement program, which raised $8 million from the issuance of just over 25 million shares at a price of 11 cents each. Then, on 29 March, Invictus announced that it had signed a petroleum exploration development and production agreement with the government of Zimbabwe for 25 years. This agreement will allow the Cabora Bassa project, of which Invictus has an 80% ownership, to proceed. Invictus’ license covers 250,000 acres in the Cabroa Bassa Basin in Northern Zimbabwe. The company states that it holds “potentially the largest, seismically defined, undrilled structure in onshore Africa”.

We haven’t had any substantial news out of the company since, apart from some routine paperwork announcements. However, investors seem to have been growing more confident in Invictus with each passing day.

Another factor might be at work as well. The breakthrough for Invictus on its Cabora Bassa project could not have come at a better time. Over the past 2-3 weeks, global oil prices have risen considerably. According to Bloomberg, it was only back on 23 March that Brent crude was asking just over US$60 a barrel. Today, it’s commanding US$66.66 a barrel. There’s little doubt investors have failed to notice this in recent weeks, judging by the Invictus share price.

At the current market valuation, Invictus Energy has a market capitalisation of $99.95 million (so close to the ton).

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• Why the Invictus Energy (ASX:IVZ) share price is climbing 7% today

Motley Fool contributor Sebastian Bowen 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.

The post Why is the Invictus Energy (ASX:IVZ) share price up 23% today? appeared first on The Motley Fool Australia.

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