Tag: Motley Fool

The GameStop Corp (NYSE: GME) saga has brought the world’s attention to the ethics of hedge funds and their ability to short businesses into oblivion. On the other hand, it has also awoken Wall Street to the immense power communities like WallStreetBets on Reddit can wield. The debate continues to heat up over whether retail investors or hedge funds are in the wrong.

Don’t hate the player, hate the game

Hedge funds, Melvin Capital Management, and Citron Research have experienced substantial losses over the last few days as they covered their losing Gamestop short bets. As reported in Business Insider, Melvin Capital required an injection of capital from other hedge funds, totalling US$2.75 billion, to bail out the fund. Melvin will now have an obligation to share its future revenue with those that have supported it.

Some people are infuriated that a small community of ‘inexperienced investors’ could be allowed to conduct this level of price manipulation. However, there are many that have the polar opposite opinion – and instead, see this as hedge funds getting a taste of their own medicine.

Successful venture capitalist Chamath Palihapitiya appeared in an interview on CNBC this week. Host, Scott Wapner suggested that companies should exist based on their earnings. Chamath seemed to be in disbelief of this ‘right price’ notion, commenting:

Who says that? Do you want to make the same argument for Tesla? It’s gone 10X in a few months. You don’t know what it’s worth, let’s be honest. I have my own model for the company – I’m allowed to underwrite however I want to own it.

Chamath continued to outline the hypocrisy between the case being made for Wall Street hedge funds versus retail investors:

Everyone who bought that stock is also underwriting how they want to own it – and the point is, just because you’re wrong, doesn’t mean you get to change the rules. Especially when you [hedge funds] were wrong, you got bailed out the last time. That’s not fair.

Don’t discount GameStop retail investors

There has been this notion that people in the WallStreetBets community, and retail investors in general for that matter, are unequipped to make sound investing decisions. Chamath wanted to dismantle this idea after Mr Wapner made this statement:

It will be a retail investor who gets screwed because they think that this is the way this game works – that this is the new Wall Street. They’re new to this game, maybe they haven’t been in the game that long.

Chamath rebutted this, cautioning not to discount how smart a lot of these people are. The case being made is that the stock market is a free market. The rules are defined, and retail investors citing an opportunity in an over-leveraged short position and playing against that in no way lessens the professionalism of the strategy.

Could the free market become not so free?

This whole situation has become a contentious topic, amplified by a couple of significant recent developments. The first being brokers, including Robinhood and Interactive brokers, have imposed restrictions on trading some of these short-squeezed shares. The stipulation only allows positions to be exited.

Secondly, Discord, a chat platform used by WallStreetBets, temporarily removed the group; effectively eliminating the community’s ability to coordinate.

Since these actions, the GameStop share price has sunk 59%, from $469 to $193 in one day. This begs the question, could this be market manipulation in itself? It is worth noting that the brokerage fee-free Robinhood makes revenue from selling its customers’ order flows to hedge funds like Citadel (which funded Melvin Capital).

More reading

• Brokers name 3 ASX shares to buy right now
• European Lithium (ASX:EUR) share price drops despite positive update
• 2 excellent ETFs for ASX investors in February
• What to expect from the Wesfarmers (ASX:WES) first half result
• Here’s why the Sezzle (ASX:SZL) share price is dropping lower

Mitchell Lawler owns shares of Tesla. 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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The European Lithium Ltd (ASX: EUR) share price is dropping today, despite releasing a positive update to the market.

During early trade, the lithium miner’s shares were in positive territory, reaching an intraday high of 8.4 cents. However, the European Lithium share price has since fallen to 7.2 cents at the time of writing, down 6.9%.

What did European Lithium announce?

The European Lithium share price is seesawing today after providing a progress update of its flagship asset.

In its release, European Lithium advised it’s on track with the definitive feasibility study of its Wolfsberg Lithium Project.

Dorfner, selected to undertake metallurgical test-work at the mine, received samples from the company’s 1500 tonne bulk sample stockpile. Currently, the raw materials are being carefully analysed, with leading engineering group DRA Global overseeing the process.

European Lithium it would receive a full and final report oN the metallurgical results within the coming months. Together, along with other works completed by the company, the report will be used for a final definitive feasibility study.

European Lithium highlighted that completing the metallurgical test-work will allow it to optimise the design for its hydrometallurgical production facility. In turn, this will save significant costs and time in fine-tuning the plant to maximise efficiency for future production lines.

Quick take on the Wolfsberg Project

Located 270km south of Vienna in Austria, the Wolfsberg Project aims to become first local lithium supplier for European batteries. The company believes that its late-stage project is well placed to target the largest lithium import markets in the European Union.

Most notably, the European automobile industry is rapidly transitioning to electric vehicles, thus requiring lithium to power its batteries. With an existing mining permit, and strategically placed in the heart of Europe, the company is poised to take advantage of the growing market. It expects that the Wolfsberg Project mine will be in production in 2023.

Management commentary

European Lithium chair Tony Sage highlighted the company’s assets to move into production, saying:

European Lithium has the major advantage of an existing permitted working mine in central Europe, to provide Dorfner with the tonnage needed to build a pilot plant and produce samples for met testing.

Successful metallurgical testwork progresses our strategy toward the DFS that will see the company advance towards becoming a near term, high quality battery-grade lithium hydroxide (LiOH) producer.

About the European Lithium share price

The European Lithium share price has gone on a rollercoaster ride over the past 12 months. Its shares fell heavily in March after reaching highs of around 8.6 cents the month before. During May, the company’s share rocketed to 9 cents, and again nosedived to COVID-19 lows.

Since hitting a 52-week low of 3.5 cents in October, the European Lithium share price accelerated to 13 cents this month. Currently, its shares are swapping hands for 7.3 cents.

More reading

• Why the European Lithium (ASX:EUR) share price is rocketing 50% 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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If you’re looking for an easy way to invest in international shares for diversification, then exchange traded funds (ETFs) could be just what you need.

But which ETFs should you look at? Here are two popular ETFs that have generated strong returns for investors:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. As its name implies, it gives investors exposure to a number of the biggest and brightest tech shares in the Asia market. Among the fund’s holdings you will find the likes of Samsung, Alibaba, JD.com, Meituan Dianping, Tencent, Baidu, and Pinduoduo.

In respect to the latter, Pinduoduo is an e-commerce platform that offers a wide range of products from daily groceries to home appliances. Its platform connects distributors with consumers directly through an interactive shopping experience, allowing shoppers to team up to buy items at lower prices. At the end of September, it was serving 731 million active buyers.

Another company you’ll be owning a slice of is Meituan Dianping. Its apps connect consumers with local businesses for food deliveries (think UberEats), hotel bookings, and movie tickets, among many other services. During the second quarter of FY 2020, the company was making 24.5 million food deliveries per day. Meituan had 476.5 million users at the end of September.

Over the last 12 months, the BetaShares Asia Technology Tigers ETF generated a return of 68% for investors.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF to look at is the BetaShares NASDAQ 100 ETF. This ETF aims to track the performance of the famous NASDAQ 100.

This index comprises 100 of the largest non-financial companies listed on Wall Street’s famous exchange. This means you’ll be buying a slice of tech shares such as Amazon, Apple, Microsoft, Netflix, and Google parent, Alphabet, as well as non-tech companies including Gilead Sciences, Lululemon, Moderna, and Starbucks.

As with the Asia Technology Tigers ETF, its units have provided investors with strong returns over the last 12 months. Since this time last year, the BetaShares NASDAQ 100 ETF is up 23.5%.

More reading

• 3 explosive ASX growth shares that could be strong buys
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• 2 tech ETFs delivering rapid growth
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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 and has recommended BETANASDAQ ETF UNITS and BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With earnings season on the horizon, I have been looking at what is expected from some of Australia’s most popular companies.

On this occasion, I’m going to take a look at conglomerate Wesfarmers Ltd (ASX: WES).

What is expected from Wesfarmers in the first half of FY 2021?

According to a note out of Goldman Sachs, it is expecting a strong half year result from Wesfarmers next month.

Goldman is forecasting underlying revenue of $17,616.2 million for the six months ended 31 December. This is up 15.5% on the prior corresponding period. It is also 2.6% higher than the consensus estimate of $17,171 million.

This is expected to be driven by growth across almost the entirety of the business. Though, the biggest driver will be the key Bunnings business, which Goldman is expecting to deliver a 22.3% increase in revenue to $8,899.4 million.

This is expected to be supported by an 8.4% jump in Department Stores revenue to $5,406.7 million and a 25.6% increase in Officeworks revenue to $1,546.1 million.

And thanks to margin expansion of 120 basis points, offset slightly by a lower property earnings contribution, Goldman estimates that the company will report a 12.5% increase in earnings before interest and tax (EBIT) to $1,831.8 million.

Finally, underlying net profit after tax is forecast to grow 12.7% to $1,269.8 million, allowing the Wesfarmers board to declare an interim dividend of 84.1 cents per share. This will be up 12.2% on last year’s interim dividend.

Though, it is worth noting that in respect to its dividend, Goldman does see upside risk. It commented: “However, we note that there is risk to the upside through a special dividend given the strong balance sheet position and the guidance for c. 85% of payout ratio (which we forecast on a full year basis).”

Is the Wesfarmers share price in the buy zone?

At present, Goldman feels Wesfarmers’ shares are fully valued and has reaffirmed its neutral rating and lifted its price target to $48.30.

This compares to the latest Wesfarmers share price of $55.27.

More reading

• Wesfarmers (ASX:WES) share price climbs to new record high
• These blue chip ASX shares just hit multi-year highs
• Why ASX travel shares like Webjet (ASX:WEB) fell lower on Monday
• 3 top ASX blue chip shares to buy
• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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 Sezzle Inc (ASX: SZL) share price is trading lower on Friday following the release of its fourth quarter update.

In afternoon trade, the buy now pay later provider’s shares are down 2% to $8.12.

How did Sezzle perform in the fourth quarter?

For the three months ended 31 December, Sezzle reported a 205.4% increase in underlying merchant sales (UMS) to US$320.8 million ($419.8 million). This was also a 40.6% quarter on quarter increase.

This meant that at the end of the period, Sezzle’s annualised run rate UMS reached US$1.36 billion.

According to the release, this strong growth was driven by an increase in active customers, merchants, and repeat usage.

In respect to customer numbers, Sezzle’s customers broke through the 2 million mark for the first time and stood at 2.2 million at the end of the period. This was up 143.9% over the 12 months.

As for merchant numbers, they increased 166.6% to 26,690. Management notes that its move up the merchant enterprise spectrum toward large enterprise is gaining traction. In addition to GameStop, Sezzle is now available at a number of mid-size merchants such as UNTUCKit, Thursday Boots, Galls, Guidefitter, and Pure Hockey.

And finally, repeat usage improved for the 24th consecutive month. Active Consumer repeat usage grew to 89.8% and supported lower loss rates.

At the end of the period, the company had total cash on hand of US$89.1 million, consisting of US$84.3 million of cash and cash equivalents and US$4.8 million of restricted cash.

Sezzle’s Executive Chairman and CEO, Charlie Youakim, was pleased with the quarter and particularly the company’s performance in December.

He commented: “We are very excited about our momentum as December’s UMS outpaced November’s for the first time in the Company’s history. Further, each month throughout 4Q20 represented new records for UMS, Active Consumers, Active Merchants, and Repeat Usage.”

“Our efforts toward large enterprise merchants is paying dividends, as evidenced by our recent addition of GameStop and a number of mid-sized merchants such as UNTUCKit, Thursday Boots, Galls, Guidefitter, and Pure Hockey,” he concluded.

More reading

• What’s in store for the ASX tech sector in 2021?
• ASX 200 rises 0.4%
• Could this be why Afterpay (ASX:APT) and other BNPL shares are soaring today?
• Why Afterpay, Australian Ethical, Pro Medicus, & Sezzle shares are charging higher
• 2 small cap ASX shares to buy that are growing quickly

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended 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 Wisr Ltd (ASX: WZR) share price is climbing today as the company announced a positive quarterly report for the period ending 31 December 2020. Shares in the neo lender are currently trading 2.7% higher at a price of 19 cents.

Wisr is a small cap Australian fintech company that operates in the marketplace lending industry. The company’s app aims to help people pay down debt and enables users to compare credit scores. It also has recently launched a vehicle lending product. 

Why the Wisr share price is flying higher

In today’s release, the company advised its Wisr Warehouse funding model continued to drive growth for the company. As such, Wisr saw strong 43% growth on last quarter as revenue increased to $5.9 million. This means that revenue is now up an impressive 350% since this time last year.

New loan originations also grew, up 35% on the previous quarter at a record of $83.3 million. Total loan originations now stand at $390.5 million.

Wisr remains strongly funded with $29 million in cash and liquid loan assets.

Management comments

Wisr CEO Anthony Nantes welcomed the results, saying:

With all the foundations now firmly in place, our very strong exit run rate and continued improvements in all key metrics has us well placed to deliver a highly profitable business as we scale towards our medium-term target of a $1B loan book.

Wisr continues to attract Australia’s most creditworthy customers with our purpose-led business model, headlined by rates lower than a big bank, with no monthly or early repayment fees and the only app in Australia to help customers pay their loan down faster.

About the Wisr share price

The Wisr share price has underperformed the market in recent times, dropping 22% in the last six months. In comparison, the All Ordinaries Index (ASX: XAO) has more than 14% over the same period.

More reading

• The Next Science (ASX:NXS) share price is up 8% today. Here’s why
• Here’s why the Volpara (ASX:VHT) share price is edging higher
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Motley Fool contributor Daniel Ewing 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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Worley Ltd (ASX: WOR) shares are climbing higher today following the announcement of two contract awards for the company. During the opening minutes of trade, the Worley share price catapulted to an intraday high of $11.90. However, some quick profit taking has led Worley shares to retreat back to $11.77 at the time of writing, up 3.79%.

For this month alone, the global engineering company has won a total of five lucrative deals within the energy, chemicals and resources sectors.

Extended strategic partnership

The Worley share price is on the move today after the company released two positive updates to the market.

The first of these announcements related to a signed strategic partnership between Worley and Avantium Renewable Polymers. Under the agreement, Worley will assist in the development of a renewable plastic feedstock plant located in Delfzijl, the Netherlands. This follows the company’s completed work conducted over the last two years in the concept development phase and front-end engineering design of the facility.

The first-of-its-kind renewable plastic feedstock plant will produce plant-based furandicarboxylic acid (FDCA). This is a key component in making chemicals and plastics such as polyethylene furanoate (PEF). The latter is used for a variety of applications that include safe and recyclable packaging for food, drinks, shampoo, window cleaner, and even tennis balls.

Worley stated that it will be issued Avantium shares in return for a 10 million euro equity investment. This will allow both parties to share the risk associated with the engineering, procurement and construction phase of the facility.

The project will be implemented by Worley’s team in the Netherlands and Belgium.

Worley CEO Mr Chris Ashton welcomed the extended collaboration, saying:

We are excited to have entered into a strategic partnership with Avantium which is a leader in advancing the circular economy. This award reflects our strategic pivot to sustainability and delivering a more sustainable world. We look forward to growing our relationship with Avantium and transforming the global use of plastics.

Offshore oil contact award

In the second release driving the Worley share price higher today, the company revealed it won a contract from CNOOC Petroleum Europe Limited. The 2-year deal will see Worley provide engineering, procurement and construction services to three platforms within the North Sea. They include the Buzzard, Golden Eagle, and Scott offshore oil platforms.

The contract, which includes feasibility to the commissioning, will be undertaken by Worley’s United Kingdom office in Aberdeen. Additionally, the company’s global integrated delivery team will provide support where needed.

Mr Ashton, touched on the partnership, adding:

We are pleased that CNOOC Europe has selected Worley to continue supporting its North Sea assets. With our strategic focus on sustainability and delivering a more sustainable world, we’re delighted this work includes evaluation of alternative energy sources, building further on Worley’s relationship with CNOOC and our off-shore capabilities in the North Sea.

Worley share price performance

The Worley share price has accelerated since its multi-year low of $4.63 reached in March last year. Since then, Worley shares have jumped by more than 150%, reflecting positive investor sentiment.

Based on the current Worley share price, the company commands a market capitalisation of roughly $6 billion.

More reading

• Worley (ASX:WOR) share price dips despite new deals
• Broker lists the best ASX stocks to own for an up to 30% gain in 2021
• Worley (ASX:WOR) share price dips lower despite positive news
• Why the Worley (ASX:WOR) share price is edging higher
• ASX 200 drops 1.1%

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 PointsBet Holdings Ltd (ASX: PBH) share price has been a positive performer on Friday.

In morning trade the sports betting company’s shares jumped as much as 6.5% to $16.49.

The PointsBet share price has since dropped back a touch and is now up 2% to $15.81.

Why is the PointsBet share price jumping higher?

Investors have been buying PointsBet shares on Friday following the release of a quarterly update which revealed further strong growth across major metrics.

For the three months ending 31 December, PointsBet recorded turnover of $1,198.2 million. This was up a massive 303% on the prior corresponding period.

Strong turnover growth was achieved across both its Australian and US operations. Australian turnover increased 193.9% to $543.3 million and US turnover jumped 482.4% to $654.9 million. This was driven partly by a 106.6% increase in active clients to 211,100. This comprises 143,000 in Australia and 68,100 in the US.

Also growing strongly was the company’s gross win, which increased 189.2% to $83.4 million. This growth was driven entirely by its Australian operations, with its US business actually going backwards despite its huge turnover growth.

Australian gross win was up 264.4% to $75.5 million, whereas US gross win fell 2.6% to $7.9 million. This means these businesses were operating with vastly different gross win margins of 13.9% and 1.2%, respectively.

Pleasingly, there has been a huge improvement so far in the third quarter. Between 1 January and 24 January, the US business enjoyed a gross win margin of 15% and the Australian business’ gross win margin came in at 12.1%.

Finally, PointsBet’s net win for the second quarter was $44.6 million, up 148.1% from the same period last year. And thanks to the aforementioned improvement in its gross win margins in the third quarter, the company’s net win was $22.9 million between 1 January and 24 January. This means it has achieved half of its second quarter net win in just three and a half weeks.

Balance sheet

At the end of the period, the company’s corporate cash balance stood at $359.1 million with no borrowings.

PointsBet does, however, have a commitment to invest US$393 million into marketing over a five-year period to support its partnership with NBCUniversal.

More reading

• ASX 200 rises 0.4%
• Why the PointsBet (ASX:PBH) share price jumped to a record high today
• Why these ASX shares just stormed to 52-week highs or better
• Why Megaport, Netwealth, PointsBet, & Zip shares are racing higher
• Here’s why the PointsBet (ASX:PBH) share price will be on watch today

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 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 Centuria Industrial REIT (ASX: CIP) share price is up 2.65% at $3.10 in midday trading, outpacing the 0.5% gain posted by the broader S&P/ASX 200 Index (ASX: XJO).

Today’s share price gains follow Centuria’s announcement of 2 new logistics acquisitions.

Centuria Industrial REIT is a real estate investment trust and Australia’s largest domestic pure play industrial REIT.

What assets has Centuria acquired?

Centuria reported today that it has acquired 2 modern industrial facilities in Derrimut, Victoria. At a price tag of $37.25 million, they deliver an average initial yield of 5.1%.

Together, the 2 assets have an area of 31,466sqm, increasing the REIT’s portfolio weighting to Victoria to 38% (previously 37%).

The assets have a 4.6-year weighted average lease expiry (WALE) and are fully occupied by Volkswagen Group and Tasman Logistics.

Centuria notes that Derrimut offers excellent connectivity to key transport routes, such as the Western Freeway and the Western Ring Road. The facilities are just 20km from Melbourne’s CBD.

Centuria will fund the acquisitions using existing debt facilities.

Commenting on the news, CIP fund manager Jesse Curtis said:

The two Derrimut acquisitions were off-market opportunities that expand the trust’s critical mass, now totalling five stabilised assets, within this well-established industrial market. The properties are underpinned by strong tenant covenants with well-known national and international customers contributing to CIP’s reliable income streams.

Both assets provide low site cover within an in-demand precinct providing the opportunity to deploy our active management approach to build on CIP’s already high quality portfolio. As Australia’s largest ASX listed pure-play industrial fund, these acquisitions continue to demonstrate CIP’s ability to identify relative value for high quality industrial assets in a highly competitive environment.

Centuria Industrial REIT will report its first half of the 2021 financial year results on 2 February.

More on Centuria share price and company snapshot

Centuria’s portfolio of industrial assets are located across Australia’s major cities. The REIT has a market cap of $1.7 billion. It pays an annual dividend yield of 5.9%.

The Centuria share price is up 0.3% in 2021. Shares have yet to fully recover from the 39% loss suffered during the wider COVID-19 led market rout last February and March. Over the past full year, shares are down 14%.

More reading

• Starpharma (ASX:SPL) share price dips on quarterly update
• GameStop (NYSE:GME) stock insanity: Here are 4 things you need to know
• The latest ASX stocks to be hit by broker downgrades
• I own these 3 potential short-squeeze stocks. Here’s what I’m doing
• Why Bubs, Kogan, Lake Resources, & Western Areas shares are sinking lower

Motley Fool contributor Bernd Struben 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 Starpharma Holdings Limited (ASX: SPL) share price has dipped slightly today after the company released its quarterly cashflow and activities report for the quarter ended 31 December 2020.

Starpharma is a global biopharmaceutical company that develops pharmaceutical and medical products based on proprietary polymers called dendrimers. Dendrimers are man-made nanoscale compounds that can be used both to enhance existing health products and as entirely new products. 

The company is presently developing Viraleze, an antiviral nasal spray for COVID-19 that is complementary to vaccines and other preventative measures.

Here are some highlights from the company’s quarterly update.

Starpharma developments during the December quarter

As Starpharma prepares for the pre-launch activities surrounding its new Viraleze product, initial batches are being manufactured to support a European launch.

The report advises that the company is also reaching out to pharmacy chains, B2B customers and online platforms in anticipation of the new product offer.

During the quarter, Starpharma also commenced a human study for Viraleze that is currently taking place in Perth, Western Australia. The results of this study are not necessary to achieve EU product registration. The study is expected to conclude in the first quarter of this year.

Starpharma continues to progress clinical trials for its DEP docetaxel and DEP cabazitaxel products. These treatments are being tested to shrink tumours in patients with pancreatic, oesophageal and gastric cancer.

The company also advised that encouraging trial work moved forward over the three-month timeframe for its DEP irinotecan product, which treats tumour types including breast, colorectal, ovarian, pancreatic, lung and oesophageal cancer. 

Financial highlights

Starpharma’s closing cash balance as at 31 December 2020 was $70.3 million. This included $47.0 million in net proceeds following the equity placement and share purchase that took place during the period.

Net operating cash outflows were $7oo,000 for the quarter. The company notes these outflows are predominately related to the Viraleze launch and the DEP product clinical programs. 

Starpharma share price snapshot

The Starpharma share price has currently slid down 0.33% today and is trading at $1.50. Starpharma shares are up 28% on this time last year, and the company has a current market capitalisation of $611 million. 

More reading

• Leading broker names the ASX healthcare shares to buy in 2021
• Are these 4 ASX medical shares set for a healthy 2021?

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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