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Compared to its stellar rise in 2019, the CSL Limited (ASX: CSL) share price has seemingly gone nowhere fast this year. This is despite solid earnings and a contribution to the COVID-19 vaccine efforts. How have other S&P/ASX 200 Index (ASX: XJO) healthcare shares performed and why hasn’t the CSL share price pushed higher? 

Healthcare winners and losers

ASX 200 healthcare shares including Fisher & Paykel Healthcare Corp Ltd (ASX: FPH), Sonic Healthcare Limited (ASX: SHL) and ResMed CDI (ASX: RMD) have all run into record highs following the tailwinds that COVID created for their earnings and businesses. These ranged from significant demand for respiratory-related devices created for Fisher & Paykel and ResMed, to supporting COVID testing around the world for Sonic Healthcare. 

Conversely, there have been some healthcare companies left out in the cold during the pandemic. These include Cochlear Limited (ASX: COH) and Ramsay Health Care Limited (ASX: RHC), both of which  experienced a significant decline in earnings due to lockdown measures. Cochlear’s FY20 net profit after tax dipped 42% due to the deferral of cochlear implant surgeries across the world. Similarly, Ramsay’s FY20 statutory net profit after tax was down 47.9% as surgeries were postponed.

CSL in the middle 

CSL hasn’t quite experienced the same tailwinds as Fisher & Paykel or ResMed, but its earnings haven’t been severely punished like Cochlear or Ramsay. 

In FY20, CSL’s revenues increased 9% and net profit after tax was up 17% on a constant currency basis. The business has experienced solid earnings growth across its portfolio and expects demand to remain strong, especially for immunoglobulin and influenza products which contribute more than half of the company’s revenue. 

CSL has not, however, remained immune to COVID-related challenges. A number of its R&D trials were paused as it needed to prioritise patient safety during the pandemic. Furthermore, plasma donors fuel the company’s pipeline and revenue. In its FY20 report, CSL revealed its plasma collections had been adversely impacted with collection volumes down 5% compared to FY19.

According to CSL, the company is implementing a number of initiatives to try to mitigate these impacts. Moving forward, CSL is targeting revenue growth in the range of 6% to 10% and net profit growth between 3% and 8%. 

How has the CSL share price performed in 2020?

At the time of writing, the CSL share price has increased 9.68% in year-to-date trading. Whilst this is a significant outperformace when compared to the wider ASX 200, CSL shares still remain around 12% below the 52-week highs we saw in February this year. 

More reading

• 2 fantastic ASX healthcare shares to buy for 2021
• CSL (ASX:CSL) share price on watch after hints of ‘far more robust’ vaccine
• Brokers name 3 ASX shares to buy right now
• CBA (ASX:CBA) and the ASX banks just had an amazing month
• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Ramsay Health Care Limited, ResMed Inc., and Sonic Healthcare 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 lunch the S&P/ASX 200 Index (ASX: XJO) is off its lows but remains on course to end its winning streak. The benchmark index is currently down 0.4% to 6,702.9 points.

Here’s what is happening on the market today:

Appen downgrades guidance.

The Appen Ltd (ASX: APX) share price has been sold off on Thursday after it downgraded its FY 2020 guidance. Due to COVID-19 headwinds, the artificial intelligence services company is now expecting to report full year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $106 million to $109 million (or $108 million to $111 million when applying the originally assumed exchange rate). This is a reduction from its previous guidance of $125 million to $130 million. Management advised that many of its major customers in California have been hit by lockdowns, which has impacted investment decisions.

Fortescue hits record high.

The Fortescue Metals Group Limited (ASX: FMG) share price continued its ascent and hit a record high of $22.58 this morning. Investors have been buying the iron ore producer’s shares again on Thursday after the price of the steel making ingredient continued to rise. According to CommSec, the spot iron ore price pushed through the US$150 a tonne level overnight.

Gold miners tumble lower.

Australian gold miners have come under pressure today after the spot gold price tumbled lower overnight. The price of the precious metal dropped over 2% after vaccine optimism gave risk sentiment a boost and weighed heavily on safe haven assets. The likes of Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) are trading notably lower and have dragged the S&P/ASX All Ordinaries Gold index down 3.3% at lunch.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the Perpetual Limited (ASX: PPT) share price with a gain of 6%. This morning Credit Suisse upgraded the fund manager to an outperform rating with a $39.00 price target. The worst performer has been the Appen share price by some distance with a 12% decline. This follows its guidance downgrade.

More reading

• Why Appen, McPherson’s, Northern Star, & PWR shares are dropping lower
• Why the Michael Hill (ASX:MHJ) share price is leaping 11% higher
• Inquiry calls moratorium on mining projects after Rio Tinto (ASX:RIO) Juukan debacle
• Evolution Mining (ASX:EVN) share price tumbles lower despite Crush Creek acquisition
• Saracen (ASX:SAR) and Northern Star (ASX:NST) shares on watch after merger update

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. 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak. At the time of writing the benchmark index is down 0.4% to 6,700.7 points.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

Appen Ltd (ASX: APX)

The Appen share price has sunk 12% lower to $26.27 following the release of an update. The artificial intelligence services company revealed that COVID-19 has been weighing on its performance and is expected to lead to it falling well short of guidance in FY 2020. It is now forecasting underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $106 million to $109 million (or $108 million to $111 million when applying the originally assumed exchange rate). This is down from its previous guidance of $125 million to $130 million.

McPherson’s Ltd (ASX: MCP)

The McPherson’s share price has dropped 8% to $1.15. Investors have been selling the health, wellness, and beauty products company’s shares after it announced the departure of its CEO after a difficult year. Laurie McAllister has resigned with immediate effect just days after the company completed the acquisition of the Global Therapeutics business from Blackmores Limited (ASX: BKL).

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 5.5% to $12.30. This follows a sizeable pullback in the spot gold price overnight after risk sentiment improved and demand for safe havens softened. It isn’t just Northern Star that is sinking lower. The S&P/ASX All Ordinaries Gold index is down 3.6% at the time of writing.

PWR Holdings Ltd (ASX: PWH)

The PWR share price has fallen 3.5% to $4.98 despite the release of a positive update. PWR revealed that trading had been strong recently. As a result, for the first half of FY 2021, it expects EBITDA in the range of $10 million to $11.5 million. This represents an increase of more than 30% on the prior corresponding period. However, with its shares recently hitting a record high, some investors may have been expecting even stronger growth.

More reading

• The PWR Holdings (ASX:PWH) share price dips on market update
• Why the McPherson’s (ASX:MCP) share price is sinking lower again
• Saracen (ASX:SAR) and Northern Star (ASX:NST) shares on watch after merger update
• Which ASX shares will China ‘punish’ next?
• 5 things to watch on the ASX 200 on Tuesday

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. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended PWR HLDING 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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The Syrah Resources Ltd (ASX: SYR) share price won’t be going anywhere today after it requested a trading halt in order to launch a capital raising.

What did Syrah announce?

This morning the graphite producer announced a capital raising which aims to raise a total of $124 million. This comprises a convertible note deed, a fully underwritten institutional placement, and a share purchase plan.

According to the release, Syrah is raising approximately $56 million (US$42 million) via a fully underwritten placement to professional and sophisticated investors at a fixed offer price of $0.90 per share.

This represents an 11.3% discount to its last close price.

It will then attempt to raise a further $12 million (US$9 million) via a non-underwritten share purchase plan. This will be offered to eligible shareholders in Australia and New Zealand following the completion of the placement.

Finally, a further $56 million (US$42 million) will be raised via a convertible notes issue in two equal tranches before 31 March 2021 and 30 June 2021 to AustralianSuper. This remains subject to certain conditions, such as the completion of the placement and the company obtaining shareholder approval.

Why is Syrah raising funds?

The release explains that the proceeds will be used to progress Syrah’s natural graphite Active Anode Material (AAM) facility in the United States towards a final investment decision for the construction of a 10ktpa AAM plant.

Earlier this month Syrah completed a Bankable Feasibility Study (BFS) for the expansion of its facility, which it believes represents an exciting milestone for the company.  

The BFS confirmed a strong business case for natural AAM production at the facility, with completion of the study allowing discussions for project development to progress with potential offtake partners and financiers.

In addition to this, the proceeds will also provide additional liquidity to manage a restart decision at Balama Graphite Project in Mozambique in an orderly manner. This is subject to market demand conditions, which are looking more favourable.

Management notes that it has observed positive leading market indicators in relation to Electric Vehicle (EV) sales growth and increased Government policy support for decarbonisation of the transport sector.

More reading

• Here’s why the Syrah (ASX:SYR) share price jumped to a 52-week high today

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 Commonwealth Bank of Australia (ASX: CBA) share price just pushed into positive territory for 2020. The CBA share price started the year just shy of $80 before the March selloff sent it freefalling to $54 per share. This week, it finally pushed over the $80 level following positive coronavirus vaccine updates, reopening borders and encouraging economic data. 

At the time of writing, The CBA share price is trading at $83.56, up 0.45%.

Unprecedented strength from big four banks 

The big four banks have done much of the heavy lifting for the S&P/ASX 200 Index (ASX: XJO) after running more than 20% since October. New data has revealed that the economic recovery from COVID-19 is gathering pace.

In the context for banks’ earnings, the Australian Banking Association (ABA) has found that the number of loan deferrals has fallen below 300,000 nationwide. This compares to the peak of more than 900,000 loans deferred. 

In the case of Commonweath Bank, it experienced a net reduction in total loan deferred facilities of 59% during the month of October. Approximately 52,000 loans remained in deferral as at 31 October, down 75% from the total as at 30 June 2020 (210,000). 

Economic turnaround taking place 

In the RBA’s opening statement to the House of Representatives Standing Committee on Economics, Governor Philip Lowe said that economic news had been better than expected.

He said that over recent months, the number of people in employment had risen significantly, and the peak in the unemployment rate was now likely to be 7 and 8 per cent, rather than close to 10 per cent.

Retail spending has continued to increase, with consumers adjusting their spending patterns. Business and consumer confidence has lifted significantly, and housing markets have generally proved resilient. 

GDP growth ‘solid’

Given these developments, the RBA is now expecting GDP growth to be “solidly positive” in both the September and December quarters. And then, next year, a central scenario for the economy to grow by 5 per cent and a further 4 per cent over 2022. 

Back in November, the RBA announced another major policy package that included a reduction in the cash rate target to 0.10 per cent and the introduction of a quantitative bond purchase program. This involved the RBA buying $100 billion of government bonds over the next 6 months. 

These measures will support the economy through a number of channels. Lower borrowing costs will free up cash flow and incentivise households and businesses to spend. Lower interest rates will also support asset prices, which boost balance sheets, consumption and investment. The end result is a stronger economy and more jobs. 

More reading

• ASX 200 up again on Wednesday
• ASX 200 up 0.7%: CBA update, IGO enters lithium market, Healius jumps
• Commonwealth Bank (ASX:CBA) share price higher on divestment update
• Here are the ASX bank shares rated as a buy today
• Which ASX 200 sectors performed the best in November? 

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

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

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

While the United States still has a long way to go to match China as a cashless society, PayPal Holdings Inc (NASDAQ: PYPL) is helping the U.S. bridge the gap. PayPal has struck deals with several major retailers to use its QR code solution at checkout. If its technology becomes more widely adopted, PayPal will cement its position in the rapidly expanding digital payments market. 

Here’s what PayPal’s QR code solution could mean for its growth.

A momentous year for PayPal

PayPal Holdings reported stellar earnings results through 2020, as mobile payment adoption soared during the pandemic. In the third quarter, total payment volume and revenue grew 36% and 25%, respectively, excluding currency changes. That’s the strongest growth in the company’s history. 

Even though more people are using mobile payments, the U.S. still lags China, where 53.5% of the population is estimated to use in-store mobile payments, according to eMarketer. In 2019, 64 million people in the U.S. used in-store mobile payments, which is about one-fifth of the population. That gap in mobile payments usage between the U.S. and China is PayPal’s opportunity.

PayPal is on pace to gain 70 million net new active accounts in 2020. Those new customers should bring in even more transactions and fuel further growth for PayPal’s platform, which just hit a record 4 billion transactions processed in the third quarter. 

Growth in new customers is not a problem for PayPal. The real challenge is figuring out ways to increase the frequency that users transact with their accounts for everyday purchases. Since PayPal makes most of its money by charging fees for each transaction processed, increasing customer engagement is a key ingredient to driving revenue growth and fueling returns for shareholders.

As of the third quarter, PayPal’s transactions per active account stood at 40, which means users made a transaction at a rate of less than once per week over the last year. It is encouraging that PayPal can generate $20 billion in revenue and $3.1 billion in net profit with customers using their account as infrequently as they currently do.

Just imagine what those numbers would look like if PayPal achieves its long-term goal of making its platform an everyday use case for its users. Revenue and profits would certainly be multiples higher than they are now. PayPal’s new QR code checkout solution is taking a big step in that direction.

Major retailers are adopting PayPal’s checkout technology

In May, PayPal announced that its QR code payment solution was available to buy and sell goods across 28 markets worldwide. It was marketed as a “touch-free way to buy and sell in-person.” Given PayPal’s 361 million active customer accounts, it didn’t take long for large retailers to sign up to tap into that large installed base of users. 

In July, CVS Health‘s pharmacy chain became the first national retailer to integrate PayPal and Venmo QR code technology at checkout across 8,200 CVS Pharmacy stores. 

More deals have followed, including with Nike and Bed Bath & Beyond. There could be more announcements coming, as PayPal remains in talks with more than 100 large retailers. 

The launch of its QR code solution does more than expand PayPal’s addressable market to offline payments. For example, when people use two or more of PayPal’s products, including checkout solutions and peer-to-peer payments, it drives down customer churn by 50%. In other words, QR codes are another way to make PayPal’s brand more ubiquitous, easier to use, and a stickier experience for customers.

PayPal’s move into offline retail will be a “multiyear journey,” as CEO Dan Schulman explained during the third-quarter conference call. But he also acknowledged that management is already seeing “strong early adoption” of its QR code technology, which is a great sign for the company’s long-term growth prospects. 

PYPL data by YCharts

Investors are high on PayPal’s prospects

This growth stock has seen its valuation stretch to a high forward price-to-earnings (P/E) ratio of 57 recently. That could limit further gains in the very near term, but PayPal can grow into that valuation over the long term. Management believes the business is now on a trajectory to grow faster than the original medium-term outlook of 17% to 18% annual currency-neutral revenue growth. 

It might be tempting for investors who bought shares earlier this year to sell and lock in quick gains, but given the enormous opportunities PayPal still has in a wide-open market, this is a stock worth holding for the long haul.

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

More reading

• Afterpay (ASX:APT) share price under pressure by US BNPL giant

John Ballard owns shares of Nike and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Nike and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends CVS Health and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended Nike and PayPal Holdings. 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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The Starpharma Holdings Limited (ASX: SPL) share price has surged higher on Thursday following the release of a big announcement.

At the time of writing, the biopharmaceutical company’s shares are up 15% to $1.50.

What did Starpharma announce?

This morning Starpharma announced that significant commercial and regulatory progress has been made for its Viraleze nasal spray.

According to the release, the European Union (EU) regulatory dossier is now more than 90% complete, which means Viraleze is on track to be registered and ready for market in the first quarter of calendar year 2021.

This is earlier than the company was expecting and had previously announced.

What is Viraleze?

Viraleze will be marketed as an antiviral nasal spray for SARS-CoV-2, which is the coronavirus that causes COVID-19.

It will also be marketed as an antiviral nasal spray for other important respiratory viruses such as influenza and RSV.

Management believes Viraleze will “form part of a range of preventative measures such as masks and other PPE, and is complimentary (sic) to COVID-19 vaccines to further reduce risk of infection.”

What’s next?

Starpharma has revealed that its pre-launch commercialisation activities for Viraleze are well advanced with input from Boston Consulting Group.

Activities are initially focusing on direct to consumer and business-to-business channels to facilitate the most rapid entry to market. In addition to this, the company is continuing partnering discussions.

Europe will be the first geographic region for the Viraleze launch. After which, Starpharma plans to leverage its European registration to roll-out the product into other markets including Australia as quickly as possible.

As part of the go-to-market planning, qualitative and quantitative consumer research was undertaken in Europe during November.

The research from ~1,500 consumers confirmed that the product proposition for Viraleze is highly appealing. It also found that consumers would use the product in a wide range of settings. This includes in crowded areas such as shopping centres, elevators, workplaces, and public transport.

Starpharma’s CEO, Dr Jackie Fairley, commented: “We know from the positive market research that VIRALEZE has the ability to restore confidence and encourage people to resume everyday professional and recreational activities. Our market research also shows that the compelling features and convenience of VIRALEZE are highly appealing to consumers.”

“The distribution challenges of COVID-19 vaccines are well documented including the timing of wide-spread availability and adoption. Even after a vaccine becomes widely available, social distancing, PPE and other measures will continue to be important and VIRALEZE complements other prevention strategies, including vaccines. In November, the World Health Organisation stated that someone died every 17 seconds from COVID-19 in Europe. It is with the greatest urgency that Starpharma is working to make this product ready for market as quickly as possible in 1Q CY2021,” she added.

More reading

• Why the Starpharma (ASX:SPL) share price is racing higher 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 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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The Michael Hill International Ltd (ASX: MHJ) share price surged up 11% at market open today following the company’s positive trading update this morning.

Like most brick and mortar reliant retailers, Michael Hill’s shares were smashed during the COVID-19-driven market rout earlier this year, falling 69% from late January through to mid-April.

Since the 8 April low, shares have rocketed 161% higher. However, that’s still not quite enough to recover the losses from earlier in the year, with the share price down 14% year-to-date.

In comparison, the broader S&P/ASX 200 Index (ASX: XJO) is up 2% since 2 January.

What does Michael Hill do?

Founded by Sir Michael Hill in 1979, Michael Hill International is a specialist retail jewellery chain, headquartered in Brisbane.

The company sells jewellery and related services. It operates 289 stores in Australia, New Zealand and Canada. The group derives its prime revenue from Australia.

What’s driving the Michael Hill share price up?

In this morning’s interim trading update for the 22-week period ending 29 November, Michael Hill reported growth in both same store sales and gross margin.

Same store sales increased 7.9% compared to the same 22-week period last year, while same store sales in October and November were up 8.5% year-on-year.

The company reported a significant rise in sales across all of its markets. And in a trend mirrored by most ASX retail shares, it reported a huge lift in online sales, up 110% compared to the same 22-week period in 2019.

Noting 14 of its Canadian stores are temporarily shuttered due to virus control measures, Michael Hill cautioned that it is still concerned potential new virus outbreaks and lower instore foot traffic could impact its first half earnings.

Still, the company forecasts it will likely deliver earnings before income and tax (EBIT) in the first half of the 2021 financial year “materially exceeding” the prior year half one result of $31.6 million.

Commenting on the trading update, Michael Hill’s CEO Daniel Bracken said:

Across all channels and segments, the company has delivered strong results for October and November, continuing on the solid growth in sales and margin from the first quarter. In addition to this impressive top line performance, the company continues its unwavering focus on costs, and has worked diligently to deliver strong improvements in its cash and balance sheet position.

Bracken added that “the two weeks of trade leading up to Christmas are critical” for the company, and it’s keeping a close eye on evolving COVID-19 restrictions in Canada.

The Michael Hill share price has since retreated slightly to 58 cents, up 7.4%, at the time of writing.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 up again on Wednesday
• Cluey (ASX:CLU) share price jumps 12% after IPO before fading
• Citigroup downgrades these ASX mining stocks after a big rally
• The Esports Mogul (ASX:ESH) share price down 5% on mobile update

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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Billions of dollars in mining and energy projects could be put on hold if the government upholds the recommendation of a parliamentary inquiry into Rio Tinto Limited‘s (ASX: RIO) destruction of the Juukan Gorge caves cultural heritage site.

In one of seven recommendations put forward by the inquiry, the issuing of new approvals for projects that damage indigenous heritage in Western Australia could be put under indefinite moratorium.

At the time of writing, the Rio Tinto share price has edged 0.77% lower to $114.78.

What’s the background?

In May this year, Rio Tinto blasted the 46,000-year-old rock shelters at Juukan Gorge in Western Australia’s Pilbara region as part of the expansion of its Brockman 4 mine. This was despite warnings of the site’s cultural significance.

The gorge is known primarily for a cave that was the only inland site in Australia to show signs of continuous human occupation for over 46,000 years, including through the last ice age.

Rio Tinto has apologised, saying that an internal review has ascribed the mistake to a series of flaws in its systems. These include failures in the sharing of information and a lack of engagement with the indigenous people of the area.

In September, it was announced that chief executive Jean-Sebastien Jacques and other Rio executives would resign over the issue.

Parliamentary inquiry

A parliamentary inquiry has since been established to investigate everything from Rio Tinto’s corporate behaviour to the adequacy of state and Commonwealth heritage laws.

The inquiry has made seven recommendations in an interim report released yesterday. One of these recommendations is for Rio Tinto to pay compensation to the indigenous people and traditional owners of the Juukan site.

The inquiry also recommended Rio Tinto work to reconstruct the ancient structure, and called for a moratorium of all mining in the area. It further recommended Rio Tinto review its internal procedures in managing indigenous heritage matters.

Labor senator Pat Dodson, member of the joint parliamentary committee, said the destruction of the caves was one of the worst disasters “that has ever happened in our country”.

Rival miner Fortescue Metals Group Limited (ASX: FMG) is also embroiled in this issue and has been upsetting the traditional owners of Juukan. This comes after the company sought to increase its tenure on part of the area that Rio had vowed to temporarily leave undisturbed. 

More reading

• Rio Tinto (ASX:RIO) share price flat on lithium project update
• The Fortescue (ASX:FMG) share price has doubled in 2020: Too late to invest?
• Citigroup downgrades these ASX mining stocks after a big rally
• ASX mining shares boosted today after broker upgrades
• Why the Fortescue (ASX:FMG) share price hit a record high today

Motley Fool contributor Eddy Sunarto 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 PWR Holdings Ltd (ASX: PWH) share price is down 0.97% at open today after a company update on its expected performance to finish off the calendar year.

At the time of writing, the PWR share price is trading at $5.10.

Market update

PWR Holdings produces performance products for the motorsports and automotive industry. Management advised the company had seen strong trading conditions from the months October and November. And with the end of the quarter just weeks away, PWR Holdings is forecasting continued growth.

For the period ending 31 December, PWR Holdings anticipates earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the range of $10 million to $11.5 million. This represents an increase of more than 30% on the prior corresponding period of $7.6 million achieved.

In addition, the state government awarded the company a ‘Made in Queensland’ grant of $1.2 million. The donation recognises PWR Holdings’ efforts in leading the market in aluminium powder for 3D printers.

The company also successfully completed the relocation of its offices in the United Kingdom to Silverstone. This was undertaken to ensure PWR is situated close within its customers and other industry leading suppliers.

PWR Holdings revealed it has a healthy cash balance of $12 million on hand, after repaying $5 million in loans drawn out during COVID-19. In addition, the company has available debt facilities of more than $15 million, and a unutilised asset finance provision of $7.5 million.

What did management say?

PWR Holdings managing director Kees Weel, welcomed the company’s resilient performance, saying:

We have taken prudent, proactive measures to maintain PWR’s strong balance sheet and solid working capital position.

About the PWR Holdings share price

The PWR Holdings share price reached an all-time high this week of $5.28. After falling to a 52-week low of $2.50 in March, investors have seen its shares rise above 100%. The PWR Holdings share price is up 9% from the start of the year.

More reading

• Evolution Mining (ASX:EVN) share price tumbles lower despite Crush Creek acquisition
• How to get free Airbnb (NASDAQ:ABNB) shares
• Rio Tinto (ASX:RIO) share price flat on lithium project update
• Why the McPherson’s (ASX:MCP) share price is sinking lower again
• Saracen (ASX:SAR) and Northern Star (ASX:NST) shares on watch after merger update

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

The post The PWR Holdings (ASX:PWH) share price dips on market update appeared first on The Motley Fool Australia.

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