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Why is the Core Lithium share price surging 7% today?
The Core Lithium Ltd (ASX: CXO) share price is surging higher today as Australian lithium exports are being tipped to rise.

Core Lithium shares are lifting 7% and are currently trading at $1.135. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 2.3% today.

Let’s take a look at why this ASX lithium explorer is starting Tuesday on a high.

Lithium exports predicted to rise

Core Lithium shares may be rising, but it is not alone among ASX lithium shares. The Pilbara Minerals Ltd (ASX: PLS) share price is rising 7.69% today, while Allkem Ltd (ASX: AKE) is rising 7.59%.

Global lithium giant Albemarle Corporation (NYSE: ALB) jumped 3.51% on the New York Stock Exchange overnight, while Lithium Americas Corp (NYSE: LAC) leapt 3%.

However, closer to home, a positive outlook for Australian lithium exports could be providing lithium shares including Core Lithium with a boost today.

Lithium exports are predicted to rise by 180% to $13.8 billion from 2022 to 2023, a new quarterly resources and energy report from the Federal Department of Industry reveals. However, lithium exports are then forecast to fall slightly to $12.9 billion from 2023 to 2024, as “prices ease”.

The report also tipped lithium prices to soar 140% to US$3,528 per tonne from 2022 to 2023 before easing to US$2,745. Further, the report stated:

World demand for lithium is estimated to increase from 583,000 tonnes of
lithium carbonate equivalent (LCE) in 2021 to 724,000 tonnes in 2022.

Over the following two years, demand is forecast to rise by over 40%, reaching 1,058,000 tonnes by 2024.

Core Lithium is exploring the Finniss Lithium Project near Darwin Port in the Northern Territory.

The company is targeting lithium concentrate production at this project in the first half of 2023.

Core lithium share price snapshot

The Core Lithium share price has soared 170% in the past year, while it has risen 92% in the year to date.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has jumped 6% in the last year.

Core Lithium has a market capitalisation of more than $1.97 billion based on the current share price

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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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4 October 2022
Why is the Sayona Mining share price rocketing 13% on Tuesday?
The Sayona Mining Ltd (ASX: SYA) share price is having a very strong day.

In morning trade, the lithium developer’s shares are up 13% to 25.5 cents.

Why is the Sayona Mining share price storming higher?

There have been a couple of catalysts for the strong gain by the Sayona Mining share price on Tuesday.

The first is the market rebounding today following an exceptionally strong night of trade on Wall Street.

Higher risk options, such as lithium shares, are performing particularly positively. This has seen the likes of Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS) push notably higher today.

What else?

Also giving the Sayona Mining share price a boost today is the release of an announcement.

According to the release, a pre‐feasibility study (PFS) has been launched to look at the potential production of lithium carbonate at the North American Lithium (NAL) operation.

The PFS will examine the option of producing lithium carbonate from spodumene produced at NAL, where production of spodumene concentrate is scheduled to commence from the first quarter of 2023.

Management notes that the proposed move downstream is a significant potential value‐adding boost in enhancing the long‐term value and profitability of the NAL operation.

‘A significant increase in profitability’

Sayona Mining’s managing director, Brett Lynch, commented:

Moving downstream has always been the plan for Sayona in Québec to enable a significant increase in profitability, whether through lithium carbonate or hydroxide production.

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 NAL project is co-owned with fellow lithium developer Piedmont Lithium Inc (ASX: PLL).

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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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4 October 2022
Why are ASX 200 lithium stocks having such a stellar run on Tuesday?
S&P/ASX 200 Index (ASX: XJO) lithium stocks are shooting higher today.

The ASX 200 itself is up a very solid 2.3% in morning trade, following a strong run in US markets yesterday (overnight Aussie time).

But the leading ASX 200 lithium stocks are running far hotter.

The Pilbara Minerals Ltd (ASX: PLS) share price is up 6.4%, with $75 million worth of trades having taken place in the first 90 minutes of trading today.

Meanwhile, shares in Allkem Ltd (ASX: AKE), formerly known as Orocobre, are up 7.1%, and the Core Lithium Ltd (ASX: CXO) share price is soaring 5.9%.

So, what’s stoking investor interest on Tuesday?

Why are ASX 200 lithium stocks shooting higher?

Companies like Pilbara, Allkem and Core Lithium have been enjoying strong tailwinds amid booming growth in global EV markets.

According to the Industry Department’s latest quarterly Resources and Energy Report, released today, 75% of the world’s consumption of lithium goes into rechargeable batteries.

The report also notes that EV sales are expected to grow tenfold over the next decade. And Australia, the world’s biggest exporter of lithium, is well placed to make hay, producing 46% of the world’s lithium supply in 2020.

In other good news for investors in ASX 200 lithium stocks, the Industry Department sees a strong run higher in lithium prices heading into 2023.

According to the report: “We expect lithium hydroxide prices to lift from US$17,370 a tonne in 2021 to US$38,575 a tonne in 2022 and US$51,510 in 2023, and moderate to US$37,650 by 2024.”

As for export earnings from the battery critical metal, the report notes:

Australia’s lithium export earnings are forecast to increase by more than tenfold in just two years from $1.1 billion in 2020–21 to $13.8 billion in 2022–23, and ease to $12.9 billion by 2023–24.

Revenue forecasts revised upwards

Also likely piquing investor interest in ASX 200 lithium stocks today, is the Industry Department’s upwards revisions of lithium export revenues since its June 2022 quarterly report.

That report estimated $4.1 billion in revenue for 2021-22, while the new figures come in at $4.9 billion.

But that’s nothing compared to the 2022-23 forecast.

The report states: “Notably, lithium exports are now forecast to rise by over 180% to $13.8 billion in 2022-23.”

The Industry Department expects export revenues to dip to $12.9 billion in 2023-24 “as prices ease”.

That easing shouldn’t be all too onerous for ASX 200 lithium stocks, however, if we bear in mind the $1.1 billion of export earnings in 2020-21.

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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 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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4 October 2022
Tesla just missed delivery estimates. Here’s why it’s time to buy
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Tesla (NASDAQ: TSLA) is the largest and most widely followed electric vehicle (EV) company, so it should not be a surprise that its stock moved on its latest quarterly vehicle delivery report. What is surprising is which direction it went.

Shares dropped after the EV trailblazer reported third-quarter production and delivery results. Rather than bailing due to the lower-than-expected deliveries, investors should focus more on what the reaction means for the stock and what the underlying business is doing. That might change some sellers’ minds.

Look at production growth

Tesla reported a quarterly record with almost 344,000 vehicles delivered. Investors expected more and the report triggered a sell-off in the stock.

That reaction was despite the fact that those deliveries were 42% higher than the prior year period, and a 35% jump over the prior quarter. But none of those numbers are really what’s important for long-term investors.

What really mattered in that report was the nearly 366,000 vehicles Tesla actually produced in the third quarter.

That alone represents a pace of 1.45 million vehicles produced annually. And that comes despite several headwinds the company is facing right now. Many EV makers are having trouble getting parts, but Tesla is navigating supply chain disruptions well.

The company has had to deal with lockdowns disrupting production at its Shanghai facility, and it is still working through the challenges associated with ramping up its two newest facilities in Austin, Texas and near Berlin, Germany.

Investors shouldn’t be worried about the discrepancy between produced vehicles and deliveries in the third quarter, however. All of its production has buyers, but the company said it is working to find enough “vehicle transportation capacity and at a reasonable cost”.

Those logistics issues for shipping finished products are magnified thanks to the sharp increase in production growth. That’s a good problem to have and should really encourage investors rather than scare them.

Beyond just cars

Tesla isn’t just about electric cars, either. The company will share its full third-quarter results on Oct. 19, 2022, and there will likely be other news items of interest from that.

CEO Elon Musk has previously said he expects the Tesla Semi battery-electric truck to begin shipping this year and the Cybertruck next year. Those could both become further growth drivers for the company.

Tesla also should benefit from the Inflation Reduction Act (IRA) in several ways. The new law resumes tax credits for EV buyers for some manufacturers — including Tesla — that had surpassed prior production limits.

Those credits previously ended after a manufacturer sold more than 200,000 vehicles. The IRA now has limits on vehicle list prices and requirements for more of the supply chain to be based in the US.

Tesla’s lower-priced vehicles will be eligible under the price limit, and it already does some of its battery production domestically. The company is also now investigating whether to build a lithium refining facility in the US.

Its battery production gigafactories support internal production, but Tesla has also been increasing production of battery storage and solar systems that it sells to outside customers. In its second-quarter report, the company said it continues to ramp up Megapack storage production as customer interest “remains strong and well above our production rate”.

Why would some sell the stock?

However, some investors have a logical reason to sell the stock. Analysts expect earnings in the back half of 2022 to be 50% higher than the first half. If that comes to fruition, Tesla stock is already trading at a price-to-earnings (P/E) ratio of about 56 based on 2022 earnings.

That’s a high valuation in any market, and the recent market sell-off has many investors looking more for safety than risky assets.

But Tesla believes it still has several more years where it will boost EV production at a 50% annual rate. That would bring the valuation down relatively quickly and could give long-term investors winning returns.

Add in the other sides to its business, and it might be wise to take advantage of the recent drop in Tesla stock.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
The post Tesla just missed delivery estimates. Here’s why it’s time to buy appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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 Scott Phillips.

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

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4 October 2022
Guess which ASX mining share is surging 40% on a new lithium find
The Eastern Resources Ltd (ASX: EFE) share price is surging higher on Tuesday.

In morning trade, the lithium explorer’s shares are up 40% to 4.2 cents.

Why is the Eastern Resources share price surging higher?

The catalyst for the rise in the Eastern Resources share price on Tuesday has been the release of a very promising announcement.

According to the release, Eastern Resources has become the latest mineral exploration company to report a significant discovery of lithium.

The release notes that the company has identified significant wide LCT pegmatites at the Trigg Hill project in East Pilbara, Western Australia.

This project is approximately 75km south-east of the Pilgangoora Lithium mine owned by Pilbara Minerals Ltd (ASX: PLS).

Positive results

Eastern Resources’ maiden drill program saw a total of 32 holes drilled for 1,972 metres. From these holes, 30 holes intercepted pegmatites. Furthermore, there was significant thickness of near surface pegmatites identified in multiple holes, up to 65m width from surface.

Eastern Resources’ executive director, Myles Fang, was very pleased with the drilling results. He commented:

We are highly encouraged with the discovery of significant wide LCT pegmatites at Trigg Hill project. The drill data information collected provides us significant information to progress the geological and metallurgical characterisation of the pegmatites at Trigg Hill Project.

A total of 642 drill samples have now been transferred to Perth for analysis at Nagrom. The company plans to utilise the results of the initial phase of drilling to support further drilling planning and targeting.

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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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4 October 2022
LiveTiles share price soars 22% on Bigtincan takeover news
It has been a difficult 12 months for the LiveTiles Ltd (ASX: LVT) share price.

But thankfully for its shareholders, there’s reason to smile at long last on Tuesday.

In morning trade, the intranet and workplace technology software provider’s shares are up 22% to 6.6 cents.

Why is the LiveTiles share price rocketing higher?

Investors have been bidding the LiveTiles share price higher today after it was confirmed that the company has received a takeover proposal.

According to the release, sales enablement platform provider Bigtincan Holdings Ltd (ASX: BTH) has tabled a confidential, non-binding, indicative proposal to acquire LiveTiles by way of scheme of arrangement.

Under the indicative proposal, LiveTiles shareholders would be entitled to receive 7 cents per share, less any dividends, or distributions paid to shareholders from this day onwards. And while Bigtincan is offering cash to acquire the company, shareholders will be given the option to receive part of the consideration in the form of Bigtincan shares.

Based on LiveTiles’ shares outstanding of 923,221,306, this implies a takeover price of approximately $65 million.

However, it is worth noting that discussions between the two parties are preliminary in nature and no agreement has been reached. Bigtincan also warned that there is no certainty that any transaction will eventuate.

LiveTiles has also responded to the news this morning and echoed Bigtincan’s warnings. It commented:

The Board of LiveTiles will carefully consider the Proposal and advise shareholders of its views once the Proposal has been assessed. In the meantime, shareholders should not take any action in response to the Proposal. There is no certainty that the Proposal will lead to a definitive transaction or offer being made for LiveTiles.

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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 BIGTINCAN FPO and LIVETILES FPO. The Motley Fool Australia has positions in and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended LIVETILES FPO. 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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4 October 2022
Are CSL shares ‘starting to look more attractive’ in October?
The share price of S&P/ASX 200 Index (ASX: XJO) healthcare giant CSL Limited (ASX: CSL) outperformed last month. Could it be gearing up to do the same this month?

While experts are notably bullish on the biotech stock, the company is reportedly facing growing risks overseas.

The CSL share price is trading at $287.45 right now. That’s 2.9% lower than it started 2022.

Meanwhile, the ASX 200 has dumped 14.9% so far this year while the S&P/ASX 200 Health Care Index (ASX: XHJ) has slipped 11.9%.

So, what might October hold for the ASX 200 healthcare favourite? Let’s take a look.

What might October bring for CSL shares?

Plenty of brokers are bullish about the future of the CSL share price.

Indeed, Citi has tipped it to surge to a record-breaking $340 – representing a potential 18% upside, as my Fool colleague James reports.

Meanwhile, brokers Macquarie, Morgans, and Morgan Stanley have slapped the stock with respective $329.50, $321.20, and $323 price targets, with various factors driving their outlooks.

Now, Alphinity portfolio manager Stuart Welch has joined the chorus tipping big things for the ASX 200 favourite. The fundie said the company’s valuation is “starting to look more attractive relative to its history”. He told Livewire:

We’re certainly seeing a lot more donors coming into [plasma] donation centres and those volumes are ramping back up. Whilst that takes some time to come through the [profit and loss], because there is a seven-to-nine-month manufacturing cycle that you got to get through first, we are confident that that recovery is coming. And putting that together, volume recovery together with a bit of price, you can see a return to margin recovery as well.

But not everything appears bright for the company. Europe’s growing energy crisis might impact many of its factories and research and development centres, The Australian reports. Though, CSL is said to be preparing for all eventualities.

The company’s chief financial officer Joy Linton was quoted by the publication as saying:

CSL has been monitoring the European energy situation closely, particularly as it relates to energy supply for our Marburg site in Germany.

The EU Gas Emergency framework prioritises companies providing critical, lifesaving therapies so we have some assurance through that. We also have robust contingency plans that can be put in place at relatively short notice.

Additionally, not all brokers are bullish on the stock. Goldman Sachs, for instance, has a neutral rating and a $291 price target on CSL shares.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 CSL Ltd. and Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited. 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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4 October 2022
Why did the Bitcoin price outperform the NASDAQ in September?
The Bitcoin (CRYPTO: BTC) price has closely mirrored the moves in risk assets for most of 2022. With the caveat that the price moves of the world’s biggest crypto tend to be much larger. Both on the up and the down swings.

With the US Federal Reserve, and central banks the world over, ramping up interest rates, risk assets have come under tremendous pressure this calendar year.

From the beginning of trading in January through to 1 September, the Nasdaq Composite (NASDAQ: .IXIC) – a good proxy for investor risk appetite – fell 25%. The Bitcoin price dropped a precipitous 48% in that same time.

See what we mean.

But something odd happened in September.

Bitcoin price begins to decouple from equities

As central banks continued their aggressive tightening policies and guidance, September proved to be another tough month for stocks.

Sticking with the NASDAQ, the tech-heavy index fell 10.5% over the month.

With that in mind, we might have expected a 20% fall in BTC.

But here’s the thing.

The Bitcoin price kicked off September trading for US$20,105 and finished the month at US$18,694. (Give or take a few tens of dollars, depending on your time zone.)

That puts the world’s biggest token down just 2% over the month. That’s less than a fifth of the losses posted by the NASDAQ.

What’s going on?

The Bitcoin price did see some noticeable swings in September, hitting highs of US$22,673 and lows of US$18,290, according to data from CoinMarketCap.

But the fact that it held up so much better than the broader tech sector indicates the token is finding significant support at these levels.

Part of that looks to be due to increasing influence from long-term crypto investors as speculator influence wanes.

According to Stephane Ouellette, chief executive of FRNT Financial Inc: “Followers of the ecosystem have been excited to see correlations with risk assets begin to break, meaning the ‘fast-money’ speculative crowd may be losing their influence on the space.”

As for October?

The Bitcoin price is currently at US$19,543.

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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. The Motley Fool Australia has positions in and has recommended Bitcoin. 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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4 October 2022
Why is the Paradigm share price rocketing 19% today?
The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price has returned from its trading halt in style.

In morning trade, the drug development company’s shares are up 19% to $1.50.

Why is the Paradigm share price rocketing higher?

Investors have been bidding the Paradigm share price higher today following the release of results from an osteoarthritis (OA) clinical study.

According to the release, the primary endpoint has been met for injectable PPS (iPPS) in the PARA_OA_008 phase 2 clinical trial.

The release explains that several OA biomarkers analysed were observed to favourably change over time in patients treated with iPPS compared to a placebo. Management notes that these biomarker changes provide insight into iPPS mechanisms of action as well as signals of disease modifying potential.

In addition, iPPS-treated subjects demonstrated statistically significant improvement in Western Ontario and McMaster Universities Osteoarthritis Index (WOMAC) pain, function, and stiffness scores at day 56 for the twice-weekly group compared to placebo.

This could be very good news for Paradigm as there is a significant market opportunity for an OA treatment. Management highlights that there were 303.1 million cases of hip and knee OA worldwide in 2017.

But it doesn’t stop there. In a separate canine study, positive interim observations on the effects of iPPS treatment on dogs with naturally occurring OA were also reported. Seven of nine dogs treated with iPPS had a clinically meaningful functional improvement in the affected limb.

‘Very encouraged’

Paradigm’s chief medical officer, Dr Donna Skerrett, was pleased with the results. She said:

We are very encouraged by the synovial fluid biomarker signals we see in this study. The observed changes indicate mechanistic effects through pain, inflammation, and chondroprotective pathways. These changes are consistent with the clinical effects observed in this and prior studies of iPPS in osteoarthritis.

Evidence of multimodal effects supports our understanding of the actions of iPPS. These biomarker changes in the joint, following subcutaneous administration of iPPS, demonstrate local effects in the synovial fluid. These are meaningful signals that we will evaluate together with clinical and imaging outcomes in order to demonstrate disease modifying effects and to pursue regulatory authority guidance on a disease modifying pathway.

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- 3 ASX All Ords shares that marched higher on Friday
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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4 October 2022
Credit Suisse has the market on edge. What should you do?
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.

The big news out of the financial sector over the weekend concerned investment bank Credit Suisse (NYSE: CS) and its financial health. Shares of the bank dipped to a new all-time low Monday morning before rebounding slightly, but many investors and analysts are deeply concerned about the Switzerland-based bank’s future.

Here’s a rundown of what happened, why investors are so concerned, and whether Credit Suisse is a bargain stock to consider for your portfolio.

Is Credit Suisse in trouble?

The short answer is that we don’t know for sure. The Financial Times reported that Credit Suisse was in discussions with investors to reassure them of the bank’s financial health. It was also reported that CEO Ulrich Korner sent a memo indicating that the bank is looking to raise capital. And without getting too deep into a discussion of derivatives, the bank’s credit default swaps — basically insurance against the bank defaulting on its debt — saw costs rise sharply, essentially indicating that investor confidence in the bank’s financial health was eroding.

Now, the bank’s management denies any major problems. In a note to CNBC, Korner spoke of the bank’s strong capital base and liquidity position. And separately, he denied reports that the bank needs to raise capital but did confirm that Credit Suisse is completing a strategic review. In fact, in his memo to staff, Korner said the bank was at a “critical moment” and would present its strategy update plans on Oct. 27. Analysts have speculated that the bank could sell some of its assets, and could potentially exit some of its markets, including the United States.

Why is the market worried?

The 2007-2009 financial crisis still leaps to investors’ minds when markets get turbulent. And the collapse of a major financial institution would trigger a wave of panic in the markets that another crisis is beginning.

Credit Suisse is a massive investment bank, with about $1.5 trillion under management and operations all over the world. To put this into perspective, Lehman Brothers — whose 2008 bankruptcy was a key event in the financial crisis — had less than $250 billion in assets under management (AUM) at the time of its collapse.

Still, analysts generally don’t see a worst-case scenario playing out here. A report by Citigroup analysts called the situation “night and day from 2007.” JPMorgan Chase called Credit Suisse’s capital position “healthy.”

Is Credit Suisse stock cheap now?

Credit Suisse is down by roughly 60% over the past year, trading at an all-time low. Shares of the investment bank trade for just 21% of book value (that’s not a typo). So, it may seem like a good time to buy the stock at a bargain.

However, keep in mind that there are significant risks to doing so. As mentioned, some experts think there’s a serious chance that Credit Suisse could collapse. And even though many think there’s a very low probability of that happening, there are plenty of bank stocks trading cheaply that aren’t having financial problems. For example, if you’re looking for an investment bank, Goldman Sachs is trading for less than its book value for the first time since the initial 2020 COVID-19 crash and is in solid financial shape.

There are other examples for sure, but the point is that it’s important to be able to distinguish between stocks that are cheap and stocks that are cheap for a reason. While a full collapse seems unlikely, Credit Suisse is definitely in the latter category.

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

The post Credit Suisse has the market on edge. What should you do? appeared first on The Motley Fool Australia.

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Matthew Frankel, CFP® has positions in Goldman Sachs. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs and JPMorgan Chase. 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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4 October 2022