Tag: Motley Fool

The Zip Co Ltd (ASX: ZIP) share price is down in line with the rest of the market amid the company holding its annual general meeting (AGM) today.

The Zip share price is down 2.3% to 62.5 cents at the time of writing. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is down 1.8%.

At the AGM, Zip provided an investor presentation and CEO and managing director Larry Diamond made a speech.

Let’s see what he had to say.

EBTDA cash flow positive by first half of FY24

The key takeout from today’s AGM is that the buy now, pay later (BNPL) share expects to turn cash EBTDA (earnings before taxes, depreciation and amortisation) positive as a group in the first half of FY24.

Zip mapped out its strategy to become cash flow positive in its annual report in late September.

Following various changes in 2022, including the shutdown of its Singapore and United Kingdom businesses, Zip is now focused on two core markets — Australia and New Zealand, and the US.

The Australia and New Zealand business has been cash flow positive for four years already.

Zip now anticipates that its United States business will be cash flow positive by the end of FY23.

We’ve got the funds to reach profitability

Diamond said Zip has approximately $141 million in available cash and liquidity:

We are confident that we have the balance sheet to fund the Company through to cash EBTDA profitability.

We expect to see the US exiting FY23 cash EBTDA positive and to neutralise the cash burn from our rest of world footprint during the second half of FY23.

We are on track to deliver positive cash EBTDA as a group in the first half of financial year 2024.

$10 trillion addressable market in US

Zip sees the US business as crucial for the company’s growth. This prompted Diamond and his family to relocate to the US this year.

Diamond said the US market was on a similar trajectory to Australia’s market:

In the US, the addressable market is estimated to be over US$10 trillion and BNPL penetration is still under 2%, including just 4% of e-commerce and 1% of in-store spend. This demonstrates the sheer size, and early stage of the BNPL opportunity that we are positioned to capture.

With Worldpay predicting BNPL volumes to more than double in 2025 from 2021 levels, we believe that the US penetration is on a similar trajectory to a more mature market like where we started in Australia.

In Australia, around one-third of adults have a BNPL account and this number is growing. Zip’s brand awareness amongst 18-45 is now close to 60%.

In the last financial year, Zip’s Australian business made a record $28 million cash EBTDA, 2.5 times cash EBTDA from financial year 2021. This clearly demonstrates the operating leverage of the business model and the potential to deliver strong EBTDA growth at scale.

Zip share price snapshot

The Zip share price is down 86% in the year to date.

The shares have been rangebound in the low 60 cents since early October.

They are currently trading 43% above their 52-week low of 44 cents.

The post Zip share price slides despite CEO pinpointing profit timeline appeared first on The Motley Fool Australia.

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More reading

• What could this proposed regulation mean for Zip shares?
• Why is the Zip share price up 5% on Tuesday?
• Why has the Zip share price dumped 12% in October?
• Could this represent another nail in the Zip share price coffin?
• Zip shares have fallen 85% this year but Diamond still says ‘We can be the next CBA’

Motley Fool contributor Bronwyn Allen has positions in ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. 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 Scott Phillips.

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Insiders appear to be backing these S&P/ASX 200 Index (ASX: XJO) shares, with three directors bolstering holdings in their own companies this week.

Insider buying is generally a good sign that those in the know believe their company’s stock is trading at a reasonable price. It can also be an indication that those working behind the scenes have confidence in their business.

So, which ASX 200 shares seemingly appear attractive to those in the know? Keep reading to find out.

3 ASX 200 shares being bought by insiders this week

The largest insider purchase of the three ASX 200 shares by value was made by Cochlear Limited (ASX: COH) director Michael del Prado.

The director forked out US$192,000 on 150 shares in the hearing implant device manufacturer, paying US$128 apiece to do so, on Tuesday.

The purchase was made on the United States over-the-counter market and boosted Prado’s holding in the company to 450 shares.

The largest by number of shares was an indirect on-market trade of 15,000 shares in Iluka Resources Limited (ASX: ILU).

Chair of the mineral sands miner, Rob Cole, was behind the purchase, made on Monday. He paid a total of $130,654.14 for the parcel, representing around $8.71 per share. The insider now holds 37,000 shares in the company.

The buy has already turned a slight return. The Iluka share price is trading at $8.79 right now.

The final ASX 200 insider buying shares in their own company this week is IGO Ltd (ASX: IGO) director Justin Osborne.

He indirectly bought 10,000 shares in the diversified metals miner on Tuesday, spending a combined $148,350 to do so. That equates to around $14.835 per stock.

Unfortunately for Osborne, the company’s share price has since slipped. Buying into the company right now would see an investor pay $14.74 a share. That’s 0.6% less than the director’s purchase price.

The post 3 ASX 200 directors buying up their company shares this week appeared first on The Motley Fool Australia.

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More reading

• Why is the Core Lithium share price tanking 3% today?
• Perpetual share price surges 9% on new takeover bid
• Coles shares underperformed the market last month. What’s next?
• ASX 200 dives on hawkish Federal Reserve interest rate policies
• Are IGO shares a buy after a huge quarter of profit growth?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Novonix Ltd (ASX: NVX) share price has taken a tumble on Thursday.

In afternoon trade, the battery materials and technology company’s shares are down over 5% to $2.55.

Why is the Novonix share price sinking?

Investors have been selling down the Novonix share price on Thursday amid broad market weakness.

It isn’t just Novonix that is falling, the majority of shares on the S&P/ASX 200 index (ASX: XJO) have dropped into the red. This has led to the benchmark index falling 2% today.

Investors have been hitting the sell button following a selloff on Wall Street overnight after the US Federal Reserve increased rates by 0.75% and warned of more pain ahead.

Higher risk shares, such as battery materials shares, have fared poorly and are falling even more than the market.

For example, the Lake Resources N.L. (ASX: LKE) share price is currently down 5% and the Liontown Resources Ltd (ASX: LTR) share price has fallen 3%.

Though, it is worth noting that even after today’s sizeable decline, the Novonix share price is still up almost 50% since this time last month. That strong gain was driven largely by news that the company has been earmarked for a US$150 million government grant from the US Department of Energy.

The post Why is the Novonix share price tanking 5% today? appeared first on The Motley Fool Australia.

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More reading

• A major shareholder sold off most of its Novonix shares last week. What’s happening?
• Novonix shares go for a swim after burning through $25 million
• Why $6.5b Argo Investments is backing these ASX 200 lithium shares
• Down 65% in 2022, chair says Novonix ‘share price will respond appropriately’
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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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.

Penny stocks are shares in companies that trade for less than $5.00 per share. With a current price of $6.67, AMC Entertainment (NYSE: AMC) isn’t far from that mark. And while the stock might look like a good deal, it is cheap for a reason. Let’s explore why the struggling movie theater operator looks poised for more downside over the long term.

Profitability challenges and weird managerial decisions

We all know the COVID-19 pandemic devastated in-person entertainment venues like movie theaters, which saw their locations closed for much of 2020 and 2021. Now that the industry is back on its feet, sales are soaring — but profitability has been slower to return. AMC’s third-quarter earnings report highlights this challenge. While revenue jumped 162% year over year to $1.17 billion, the company generated a net loss of $121.6 million mainly because its operating expenses outstripped its sales. 

But management’s questionable decision to purchase a 22% stake in precious metals company Hycroft Mining is also contributing to the problem — generating a $57.3 million investing expense (a non-cash loss) in the period. It is unclear what relation an asset like Hycroft has to AMC’s core movie theater business, and the acquisition showcases a pattern of unorthodox and arguably reckless managerial decision-making at the company. Unfortunately for investors, it doesn’t end there. 

Alarming levels of equity dilution 

Other pandemic losers, such as cruise operator Carnival Corporation undertook vast amounts of long-term debt to survive the crisis. AMC had a different approach: equity dilution. The company raised capital by issuing more of its stock — a process that increased its shares outstanding from 135,528 in the second quarter of 2019 to 516,821 in the corresponding period of 2022, an increase of 281%. 

From a management perspective, this was probably the right move. AMC’s stock price has been artificially inflated by the meme stock movement. And the dilution allowed the company to quickly raise cash without undertaking the solvency risk that would have come with debt financing. But there is no such thing as free money. Equity dilution is a problem for investors because it reduces their claim on current and future earnings. This can lower the fundamental value of their shares. 

AMC’s management also seems to be taking their dilution habit too far. 

In April, the company announced a special dividend of preferred shares called AMC Preferred Equity (NYSE: APE) units at a rate of 1 for 1 with the company’s common stock outstanding. Management promptly began diluting the new equity by agreeing to sell 425 million of the new shares in September. On the surface, APE may look like a way to sell more shares without diluting the original AMC equity, but there is a catch. 

APE shares have full voting rights and can become convertible to AMC common stock if shareholders approve. With the number of APE shares rising quickly, the dilutive chickens could eventually come home to roost. 

AMC is cheap for a reason 

While AMC’s low stock price might catch the attention of bargain-hungry investors, it pays to look before you leap. Even if the company’s operational challenges are eventually resolved, management’s questionable decision-making and relentless equity dilution are major red flags for long-term investors. Continued declines look likely.  

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

The post Could AMC Entertainment become a penny stock? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for the Xero share price in November
• Ethereum and Bitcoin price crash spells the end for these Aussie crypto ETFs
• Why is the Core Lithium share price tanking 3% today?
• Perpetual share price surges 9% on new takeover bid
• Is there going to be a gunfight at the AGL corral?

Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Carnival. 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 Scott Phillips.

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

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The Xero Limited (ASX: XRO) share price has dropped into the red on Thursday following a broad market selloff.

In afternoon trade, the cloud accounting platform provider’s shares are down 2.5% to $73.72.

Where next for the Xero share price?

While the Xero share price hasn’t had a great start to the month, analysts at Goldman Sachs believe things could get better. Particularly if Xero delivers some strong numbers next week when it releases its half year results for FY 2023.

According to the note, ahead of next week’s release, the broker has retained its buy rating and lifted its price target slightly to $112.00.

Based on the current Xero share price, this implies potential upside of 52% for investors over the next 12 months.

What did the broker say?

Goldman highlights that trading conditions appear to have been solid based on a recent update from rival Intuit (Quickbooks). It commented:

Near-term industry momentum solid: with Intuit upgrading 1Q23 revenue growth guidance to be >25% in the quarter given SMB/Tax strength (vs. GSe XRO 1H23 rev +28%). This is supported by positive top-line visitation / engagement datapoints with: (1) 2Q23 visitation share stable to improving – we highlight Canada (+ve) & UK (improved post recent weakness); and (2) App downloads remaining solid with robust AUS growth, consistent performance in UK/NZ/ROW while Planday is softer.

However Xero App integration numbers declined in each region which followed the transition to the new app-store and fees across all apps in Aug-22 (prev. just new). Finally we note Xero cost growth appears to be moderating with Nov-22 job vacancies for Xero at c.35% of PcP levels, noting employees are the largest portion of XRO’s cost base.

All in all, based on the above, the broker is expecting a solid half year update next week and sees plenty of value in the Xero share price at current levels.

The post What’s the outlook for the Xero share price in November appeared first on The Motley Fool Australia.

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More reading

• How are ASX 200 tech shares faring after the overnight NASDAQ plunge?
• Top ASX shares to buy in November 2022
• Why are ASX 200 tech shares getting bashed around today?
• Why I’d buy and hold this ASX 200 share until 2030
• How I’d build a portfolio by investing in top ASX shares now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bitcoin (CRYPTO: BTC) price is down 1% over the past 24 hours. BTC is currently trading for US$20,297.

Ethereum (CRYPTO: ETH), the world’s number two crypto, has slipped 3% to US$1,542.

With equities under pressure following the latest interest rate hike from the Federal Reserve, both tokens are holding up fairly well today.

But the same can’t be said for their performance over the last year.

On 10 November last year, the Bitcoin price reached all-time highs of US$68,790. It’s down a painful 71% since that record.

The Ethereum price notched its own record highs six days later. On 16 November Ether was trading for US$4,892. It’s fallen 69% from that virtual high water mark.

Facing these kinds of headwinds, two of Australia’s pioneering crypto exchange-traded funds (ETFs) are pulling the plug.

Ethereum and Bitcoin price falls hampered these ETFs

Cosmos Asset Management launched the Cosmos Purpose Bitcoin Access ETF (CBTC) and Cosmos Purpose Ethereum Access ETF (CPET) earlier this year.

The Bitcoin ETF made its debut on the Cboe Australia exchange (formerly Chi-X) on 12 May, as The Motley Fool covered here. At that time, the Bitcoin price had already taken a big tumble but was still trading for around US$30,000.

While crypto investors had hoped that may be the bottom for the Ethereum and Bitcoin price rout, we know now that’s not how it panned out.

With the funds under pressure, yesterday Cosmos informed investors that it “will be applying to revoke the funds’ quotation on Cboe”.

Trading in both the Cosmos Bitcoin ETF and Ethereum ETF was halted on Monday. Cosmos stated, “Trading on the funds will continue to be halted pending the outcome of the application to Cboe.”

Commenting on the decision, Dan Annan, CEO of Cosmos, said (courtesy of The Australian Financial Review):

While we strongly believe in the asset class, we are all disappointed with this result. The ETFs are ring-fenced by independent external service providers, which is a key transparent risk mitigation structure across all asset classes… We will continue to follow the process in the best interests of all unitholders.

Both crypto ETFs look to be a casualty of fast-rising global interest rates.

The Bitcoin price reached its records when rates across the developed world were at historic lows, with central bankers predicting several more years of low rates.

The post Ethereum and Bitcoin price crash spells the end for these Aussie crypto ETFs appeared first on The Motley Fool Australia.

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More reading

• Up 18% in a month, could it still be worth buying Ethereum at its current price?
• The Bitcoin price leapt 10% in October. Here’s why
• Why one of the smartest investors bought Bitcoin and thinks you should too
• The Bitcoin price may be decoupling from US stocks. Is this why?
• Why are Bitcoin, Ethereum, and Dogecoin leaping higher today?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The CSL Limited (ASX: CSL) share price is falling today amid the company providing an update on its research and development progress at an investor briefing.

CSL shares are currently down 1.84% to $277.52 apiece. For perspective, the S&P/ASX 200 (ASX: XJO) is 1.86% in the red.

Let’s take a look at what is going on with the ASX healthcare share.

Research and development update

A seemingly positive investor presentation has done little to help the CSL share price today.

In its presentation, CSL said it is continuing to focus on next-generation mRNA vaccines. The company also highlighted some recent achievements.

For example, Etranacogene dezaparvovec (CSL222) gene therapy for haemophilia B treatment has been accepted for review by the Food and Drug Administration in the USA and the European Medicines Agency in Europe. This will be the first gene therapy treatment for haemophilia B if approved.

Further, CSL highlighted phase three results for garadacimab (CSL321, anti-FX11a), an investigational first-in-class monoclonal antibody. This is a potential long-term treatment for patients with hereditary angioedema.

The trial has met efficacy objectives and showed tolerability and safety. The company aims to file for approval of this treatment in the next calendar year.

CSL also noted the Vifor business, acquired this year, adds therapies including nephrology, dialysis and iron deficiency.

Head of research and development and chief medical officer Dr Bill Mezzanotte said:

CSL is on the leading edge of innovation in areas we know well and we have strategically and methodically built a pipeline that has never been more robust with diverse sources of innovation, from in-house and external sources, that include the disruptive scientific platforms of gene therapy and sa-mRNA.

CSL highlighted it invested about $1.16 billion in research and development in the 2022 financial year.

What else has CSL been up to?

On Wednesday, CSL revealed it has entered a licensing agreement with Arcturus Therapeutics Holdings Inc (NASDAQ: ARCT) to access late-stage self-amplifying mRNA vaccine platform technology.

Arcturus is developing mRNA vaccines, including a potential COVID-19 vaccine.

Commenting on the news, CSL chief operating officer Paul McKenzie said: “These combined capabilities will accelerate our journey in mRNA.”

However, the CSL share price ended the day 0.19% lower.

CSL share price snapshot

The CSL share price has descended 11% in the past 12 months, while it has lost 4.5% this year to date.

For perspective, the ASX 200 has lost about 7% in the past year.

CSL has a market capitalisation of more than $134 billion based on the current share price.

The post What’s happening with the CSL share price today? appeared first on The Motley Fool Australia.

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More reading

• Here’s why brokers rate these blue chip ASX 200 shares as buys
• Top brokers name 3 ASX shares to buy today
• Why is the CSL share price falling on Wednesday?
• Did the CSL share price fall or rise in October?
• Bell Potter names 9 ‘champion’ ASX 200 shares to buy for the next five years

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL 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 Scott Phillips.

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The All Ordinaries Index (ASX: XAO) may be sinking today but that hasn’t stopped a couple of ASX healthcare shares from racing higher.

Here’s why these two All Ords shares are smashing the index on Thursday:

Immutep Ltd (ASX: IMM)

The Immutep share price is up 5% to 31 cents. This morning the biotechnology company announced that a late-breaking abstract relating to its phase II TACTI-002 trial has been accepted for an oral presentation at the Society for Immunotherapy of Cancer (SITC) Annual Meeting 2022 this month.

The release notes that the presentation will include new clinical data for eftilagimod alpha (efti), its first-in-class soluble LAG-3 protein, in combination with pembrolizumab in 1st line non-small cell lung cancer (NSCLC) patients.

Last month, fast track designation was granted by the US FDA for efti in combination with pembrolizumab in 1st line NSCLC. This offers the potential for expedited development and review.

Rhythm Biosciences Ltd (ASX: RHY)

The Rhythm Biosciences share price is up almost 9% to $1.24. Investors have been buying this cancer diagnostics technology company following the release of an announcement relating to its ColoSTAT product.

According to the release, the company has continued the expansion of its international regulatory footprint after successfully registering ColoSTAT with the New Zealand national database of Medical Devices. This allows the lifesaving colorectal cancer detection technology to be marketed and sold in the country.

Rhythm’s CEO and managing director, Glenn Gilbert, commented:

Bowel cancer is the second highest cause of cancer death in New Zealand and a growing issue with 1 in 10 now diagnosed under the age of 50. ColoSTAT is a simple blood test which has the potential to make a material impact on health outcomes through mass screening for higher participation to achieve early diagnosis. We look forward to working with the Ministry of Health’s National Screening Unit to enhance New Zealand’s National Bowel Screening Programme.

The post 2 ASX healthcare shares smashing the All Ords today appeared first on The Motley Fool Australia.

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More reading

• 2 US stocks Wall Street thinks could deliver 50% or more upside
• How did the Sayona Mining share price perform in October?
• Is Bendigo Bank the best bet for dividends out of all the ASX 200 bank shares?
• How are ASX 200 tech shares faring after the overnight NASDAQ plunge?
• Why is the Domino’s share price down 13% in two days?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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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 market sell-offs can be brutal, they also open up opportunities to purchase some stocks that were previously trading near uninvestable levels. According to Wall Street analysts, two companies that have come down to that point are Cloudflare (NYSE: NET) and Datadog (NASDAQ: DDOG).

On average, analysts see 57% upside for Cloudflare and 56% for Datadog. That’s quite a turnaround in one year, but is it realistic? 

The businesses

First, it’s helpful to understand what these two do. Both are rapidly growing tech companies whose valuations reached unsustainable levels in 2021, contributing to their significant decline. To be clear, the businesses are both performing admirably; it was the exuberance of 2021 that caused their terrible stock performance.

Cloudflare’s product allows its clients to host websites on its servers, eliminating the need to purchase expensive networking equipment that can quickly become obsolete. Cloudflare’s 275-plus data centers in cities worldwide also place the information closer to website users, making the website load incredibly fast. With more than 151,000 paying customers, Cloudflare has a large base of customers that are expanding their use quarterly.

As businesses deploy more cloud solutions, it’s becoming harder for IT teams to monitor how all their software solutions function. Datadog’s platform solves this issue through its cloud monitoring service, allowing users to see how data flows function and to solve problems quickly when they arise. Datadog’s product is more niche than Cloudflare’s, but it still has about 21,200 paying customers. 

Although many businesses are tightening their budgets to prepare for an economic downturn, both companies posted solid revenue growth in the second quarter:

Company	YOY Revenue Growth
Cloudflare	54%
Datadog	74%

Data source: Cloudflare and Datadog. YOY: year-over-year.

These aren’t small revenue streams, either; Cloudflare’s and Datadog’s second-quarter sales were $235 million and $406 million, respectively.

However, no matter how fast a business grows, there is always a reasonable price to pay for it. From a price-to-sales (P/S) standpoint, both companies were too expensive last year.

Data source: YCharts.

Even now, many would contend that 20 times sales is also too expensive. But the bigger picture for these companies is their prospects and growth, making the valuation more palatable.

The road ahead is bright

Both Cloudflare and Datadog operate in massive markets. Datadog believes its market could be $53 billion by 2025, and Cloudflare sees its total addressable market at $135 billion by 2024. While it’s impossible for one company to capture an entire market completely, these two have a long way to go before they saturate their market opportunity.

And both companies are teetering on the brink of profitability. In the second quarter, Datadog had a mere $3.1 million in operating losses, and Cloudflare is projecting an operating profit for its full-year 2022. Unlike some tech companies that are laying off part of their workforce even to get remotely close to breaking even, these two are on the brink.

These two factors are significant reasons both stocks still command a premium price. Wall Street also expects these stocks to maintain their valuation; analysts forecast Cloudflare and Datadog to grow their revenues by 36% and 38%, respectively, in 2023. And there is likely further upside beyond that point.

I think both stocks are strong buys because of their massive opportunities, but investors must be committed to holding the stocks for at least three to five years. This will allow investors to wait out market downturns like the one we are in right now. For Datadog and Cloudflare, the best days are still ahead, and investors should take positions accordingly. 

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

The post 2 US stocks Wall Street thinks could deliver 50% or more upside appeared first on The Motley Fool Australia.

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Keithen Drury has positions in Cloudflare, Inc. and Datadog. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cloudflare, Inc. and Datadog. 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 Scott Phillips.

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

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The Sayona Mining Ltd (ASX: SYA) share price had its highs and lows in October, but overall finished flat.

Sayona shares closed at 23.5 cents on 30 September. At market close on 31 October, Sayona shares were fetching this exact same price. For perspective, the S&P/ASX 200 (ASX: XJO) lifted 6% in the same timeframe.

Let’s take a look at what impacted the Sayona share price in October.

Up and down

The Sayona Mining share price was up and down like a yo-yo in October.

Sayona shares soared 13% on 4 October on the back of positive lithium news. Sayona launched a pre-feasibility study for lithium carbonate production at its North American Lithium (NAL) operation in Quebec. Piedmont Lithium Inc (ASX: PLL) has a 25% stake in this project, with Sayona holding the other 75%.

Commenting on the news, managing director Brett Lynch said:

We look forward to examining the results of the PFS, as we work towards becoming a leading integrated producer and the largest in North America, amid accelerating demand from the battery and electric vehicle sector.

The Sayona Mining share price descended 15% between market close on 4 and 20 October.

On 5 October, Sayona Mining shares fell nearly 7.69% despite a seemingly positive update from the company. Sayona Quebec CEO Guy Laliberté described the agreement as “another important step” on the road to restarting operations at the mine.

Sayona launched a pre-feasibility study for the Moblan Lithium Project in northern Quebec, Canada. However, as my Foolish colleague James noted, profit taking and industry weakness at the time may have impacted the company’s share price.

What else?

In further news, on 18 October, Sayona advised a CA$43 million Quebec rail contract had been signed to transport lithium from the North American Lithium operation to port.

Sayona shares rocketed 18% higher between market close on 20 October and 25 October before pulling back nearly 8% up to the 31 of October.

In news on 27 October, Sayona Mining advised the NAL project is “picking up speed” with 96% of procurement and permitting complete. The project is on track to restart in quarter one of 2023.

On the final day of October, Sayona released a quarterly activities and cash flow report. Sayona has cash at hand of about $159.234 million.

Sayona’s annual general meeting will be held on 16 November.

Share price snapshot

The Sayona Mining share price has lifted 40% in the past year, while it has soared 73% year to date.

For perspective, the ASX 200 has shed more than 7% in the past year.

Sayona has a market capitalisation of about $1.8 billion based on the current share price.

The post How did the Sayona Mining share price perform in October? appeared first on The Motley Fool Australia.

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• If ASX lithium shares are soaring, why is the ACDC ETF down 9% in 2022?
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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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