Shaking off any concerns over sticky inflation and extended high interest rates, investors are sending these stocks soaring to multi-year highs today.

Which companies are we talking about?

I'm glad you asked!

ASX All Ords shares flying higher

The first ASX All Ords stock hitting a new multi-year high today is Genex Power Ltd (ASX: GNX).

The Genex share price is up 1.9% today at 27 cents a share, the highest levels since 2018. That sees the Genex share price up an impressive 50% over the past 12 months, with most of those gains delivered since the end of February.

With no new price sensitive information from the company since it announced a funding extension on 13 May, investors may be buying the stock for exposure to its portfolio of sustainable energy assets.

The second ASX All Ords share smashing new multi-year highs today is Clarity Pharmaceuticals Ltd (ASX: CU6).

The Clarity Pharmaceuticals share price is up 5.1% at $4.84 a share. That sees the stock up a whopping 549% over the past 12 months. And, if the gains are maintained, it will mark a new all-time closing high.

Investor enthusiasm was stoked again today after the clinical-stage radiopharmaceutical company announced it had entered into a supply agreement with SpectronRx for the production of diagnostic copper-64 (Cu-64).

The agreement assures a seamless supply of CU-64 for Clarity's products, which are currently progressing through clinical trials.

Clarity executive chairman Alan Taylor said:

We are very excited to bring an additional Cu-64 manufacturer to our extensive and reliable network of copper radioisotope suppliers. SpectronRx will be the first private supplier of Cu-64 to join our network in the US.

Cu-64, with an ideal 12.7-hour half-life, is able to overcome the overwhelming supply restraints of other diagnostic isotopes, specifically Ga-68 with a half-life of ~1 hour and F-18 with a half-life of ~2 hours

Which brings us to the third ASX All Ords share smashing multi-year highs today, Catapult Group International Ltd (ASX: CAT).

Shares in the global sports data and analytics company are rocketing 13.6% today, currently trading for $1.76 apiece. That sees the Catapult share price up 62% over 12 months and trading at its highest levels since October 2021.

The ASX All Ords share is surging after releasing its full FY 2024 results this morning.

Highlights include a 20% year on year increase in revenue (in constant currency) to $152 million.

And the Catapult's profit margin improved by 125% from the prior year, which resulted in $7 million of free cash flow.

The post 3 ASX All Ords shares smashing new multi-year highs while the market sinks appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Calix Ltd (ASX: CXL)

The Calix share price is up 12% to $1.98. Investors have been buying the environment technology company's shares after it found a new home for its Leilac-2 (Low Emissions Intensity Lime And Cement) project. The Leilac-2 will now be constructed at Heidelberg Materials' cement plant in Ennigerloh, Germany. In January, Calix shares were sold off after previous construction plans were shelved.

Genex Power Ltd (ASX: GNX)

The Genex Power share price is up 30% to 24 cents. This has been driven by news that the renewable energy company has received a 27.5 cents per share non-binding takeover offer from Japan's J-POWER. Management has granted due diligence access and advised that it would be willing to accept the offer if it became binding.

Life360 Inc (ASX: 360)

The Life360 share price is up 8% to $12.20. Investors have been buying this location technology company's shares after brokers responded very positively to its FY 2023 results. One of those brokers was Goldman Sachs, which reiterated its buy rating with an improved price target of $14.20.

Spartan Resources Ltd (ASX: SPR)

The Spartan Resources share price is up 9% to 54.5 cents. This morning, the gold explorer announced exceptional intercepts from drilling at the Never Never gold deposit from the Dalgaranga Gold Project in Western Australia. Management believes the results highlight the growing strategic significance of the high-grade deposit.

The post Why Calix, Genex, Life360, and Spartan Resources shares are rising appeared first on The Motley Fool Australia.

In morning trade, the renewable energy company's shares are up 38% to a 52-week high of 25.5 cents.

Why is the Genex share price surging?

Investors have been scrambling to buy the company's shares today after it received a takeover offer.

According to the release, Genex has received a non-binding, indicative, and conditional proposal from Electric Power Development (J-POWER).

The Japanese utility company has offered to acquire all of the ordinary shares on issue in Genex that it does not already own for 27.5 cents in cash per share by way of a scheme of arrangement. This represents a 48.6% premium to where the Genex share price ended last week.

This follows a previously undisclosed offer last month of 24 cents per share that was rejected by the company's board on the belief that it "undervalued Genex in the context of a change of control transaction."

In addition, the indicative proposal contains an alternative structure that will see J-POWER potentially make an off-market takeover bid for all Genex shares for 27 cents in cash per share.

If made, the potential takeover offer would be conditional on the potential scheme not being approved by the holders of Genex shares the scheme meeting and the fulfilment of the 50.1% minimum acceptance condition.

What now?

As things stand, the company's board has entered into a confidentiality and exclusivity deed with J-POWER and has provided it with access to a virtual data room for the purpose of facilitating due diligence.

It also advised that it would be willing to accept this current offer if it became binding.

However, it notes that Genex shareholders do not need to take any action in relation to the proposals. It also warned that there is no certainty that the provision of the due diligence access to J-POWER will result in a binding proposal.

The company intends to keep shareholders informed in accordance with its continuous disclosure obligations.

The post Genex share price jumps 38% on $381 million takeover bid appeared first on The Motley Fool Australia.

Whatever the case, I'm in the same boat in 2024. I'm thinking big this year as I ponder where to deploy idle cash.

While still in the early innings of my tenure on this floating rock (touch wood), I want to take the calculated risk to sprinkle a pinch of multi-bagger potential into my portfolio. These are investments that I'd invest only a small amount (1-2% of my holdings) due to their high-risk nature. However, often a little goes a long way here.

After some digging, here are the three ASX stocks I uncovered.

Potential multi-bagger stocks hiding in the dark

I prefer to look where few others are when searching for potentially lucrative opportunities. This often tends to be the smaller end of town. Moreover, inspecting companies the market has soured on can also be fertile soil for finding multi-baggers in the making.

Let's take a look.

Hansen Technologies Limited (ASX: HSN)

Hansen Technologies rarely comes to mind first when discussing ASX tech shares. Yet, this unassuming software provider has grown its revenue nearly fourfold over the past decade. During this time, the company has witnessed its market capitalisation swell from $204 million to $1 billion.

While perhaps not as flashy as other software names, Hansen's product suite is integral to businesses in the energy, utilities, and communications industries. I believe that investors are overlooking the increasing relevance of the company's offerings amid the growing complexity of our energy grid.

At a price-to-earnings (P/E) ratio of 24, the potential for growth appears to be getting downplayed here, in my opinion. I don't think the market has connected the dots on the possible green transition tailwind for Hansen Technologies.

The Hansen Tech share price is down 3.7% compared to a year ago, as shown above. I believe there could be a 100% upside from the current $4.95 price tag.

Genex Power Ltd (ASX: GNX)

Next up is renewable energy project developer Genex Power. This is a much more speculative company than Hansen because it generates far less revenue ($23.8 million in FY23) and holds a mountain of debt ($617.2 million).

The company's success in becoming a multi-bagger stock hinges on bringing its Kidston pumped storage hydro project online without cost blowouts, in addition to future planned projects. If not, the financial fallout could be disastrous. However, the construction seems to be progressing well at this time.

By my estimates — to be taken with a grain of salt — Genex could be delivering roughly 500 gigawatt hours of energy by FY2025/FY2026. By comparing this with formerly ASX-listed Tilt Renewables, I estimate a potential upside of 220% in the coming years. However, there are still hurdles that Genex will need to overcome to get there.

The Genex Power share price is up 25% compared to a year ago, as shown above.

Task Group Holdings Ltd (ASX: TSK)

The last company which I think could become a multi-bagger stock is Task Group. At a market cap of $146 million, this little transaction management platform provider flies under the radar of most. Yet, the fundamentals look promising, in my view.

Task Group is responsible for the tech behind many of your favourite takeaway apps — Starbucks, Guzman Y Gomez, and McDonald's. Powering point-of-sale systems, loyalty programs, digital ordering boards, and online ordering — this company is a one-stop-shop for bringing the hospitality experience into the 21st century.

What do I like about this one? The revenue growth rate, high insider ownership, and the digitisation trend. Not to mention the debt-free, $30 million cash balance sheet primed for strategic acquisitions.

So, what could the market be missing here? Well, Task Group plans to integrate its own payments handling tech in the first half of FY2025. Currently, the company outsources this from providers such as Tyro Payments Ltd (ASX: TYR), missing out on the ticket clipping.

Once implemented, Task estimates a doubling in customer revenue from payment revenue. This, in my opinion, could be the multi-bagger catalyst for the stock.

The Task Group share price is up 22% over the past 12 months. Shares are currently fetching 42 cents apiece.

The post 3 hidden ASX stocks I'd buy to try to nab a multi-bagger in 2024 appeared first on The Motley Fool Australia.

In morning trade, the mining giant's shares are up 0.5% to $21.18.

Why is the Fortescue share price rising?

There have been a couple of potential drivers of today's gains. The first is a strong night of trade for miners such as BHP Group Ltd (ASX: BHP) on Wall Street on Friday, which has given the sector a lift.

The other is the announcement of a major renewable energy deal with Genex Power Ltd (ASX: GNX) this morning.

According to the release, following a competitive process, Fortescue has entered into a power purchase agreement (PPA) with Genex Power for 337.5 megawatts (MW) of new solar energy from its Bulli Creek Solar Project in Queensland.

The PPA is intended to meet a portion of the renewable energy requirements for Fortescue's proposed Gibson Island Project in Brisbane.

Under the terms of the agreement, Fortescue will secure the solar energy and renewable generation certificates at an agreed nominal fixed price over a 25-year term.

Though, the agreement is conditional on a couple of items. One is Genex achieving financial close on the first stage of its Bulli Creek Solar Project by 31 December 2024. The other is Fortescue reaching a final investment decision on the Gibson Island Project by 31 December 2023.

Fortescue's proposed Gibson Island Project will target the production of approximately 385,000 tonnes of green ammonia a year from the green hydrogen produced onsite through a 550MW hydrogen electrolysis facility.

Fortescue Energy's CEO, Mark Hutchinson, commented:

This agreement is the first step in securing renewable power supply for the Gibson Island Project over the long term. It is the first PPA for the project and finalising it is an important milestone in our pursuit of a targeted final investment decision this calendar year.

By entering this agreement we're also helping Genex and J-POWER to deliver their project and bring new renewable energy capacity online in Queensland – close to 115MW from this first stage is surplus to our contracted share and will therefore flow back into the electricity grid.

The post Why is the Fortescue share price rising on Monday? appeared first on The Motley Fool Australia.

How dire could it really get in 2023? According to the managing director at the International Monetary Fund (IMF), Kristalina Georgieva, quite dire indeed. In a recent interview, Georgieva revealed that the IMF expects one-third of the world economy to be in recession this year.

I'm not concerned about what a company's share price does in the short term. However, a recession can have real impacts on a portfolio. The main concerns for investors, in my opinion, are:

• Potential for companies to go bankrupt, resulting in permanent loss
• Exiting long-term investment strategy due to the psychological toll created by volatility
• Concentrating investments in long-term underperformers

Here's how I plan to recession-proof my ASX share portfolio this year and hopefully not succumb to the above pitfalls.

Short rope for debt dependents

The most at-risk ASX shares of bankruptcy in a recession are those that are unprofitable and rely on debt to fund operations and/or development.

The possibility of interest rates sustaining between 2% to 3% and a slowing economy could make funding harder to come by. If the company can't produce its own capital to continue operations, it could fall on its sword.

To try to avoid a 100% loss, I'll be quick to cut loose any such companies in my portfolio that begin to show signs of financial distress. Furthermore, I won't be deploying cash to any new investments that hold these characteristics in 2023.

One such holding I'm currently wary of is Genex Power Ltd (ASX: GNX). As of June 2022, the clean energy developer was saddled with $322 million in net debt. The company is in the process of a costly endeavour to construct a hydro project, which could put it at financial risk if costs blow out.

Smoother ride with more ASX shares

Often the greatest enemy to our investing success is ourselves. You can invest in the greatest companies in the world but if volatility gets the better of you when the market crashes, you will never enjoy the fruits of your labour — that's where diversification comes in handy.

To recession-proof my ASX portfolio against my own undoing, I plan to hold a greater variety of companies. My portfolio is heavily exposed to the tech industry with approximately a 46% weighting.

For my risk appetite, this is adequate. However, I personally want to keep this below 50% this year so that any drawdown, specifically in tech, doesn't deal too harsh a blow to my psyche.

Dodging the biggest mistake

Investing in 'safe' ASX shares probably isn't something that is usually highlighted as a possible mistake. Yet, I believe it could be one of the most detrimental traps to fall into in anticipation of, and during, a recession.

The inclination to abandon all growth investments and buy blue chips like National Australia Bank Ltd (ASX: NAB) and Telstra Group Ltd (ASX: TLS) might be tempting, but it could lead to severe underperformance long term.

These 'safe' ASX shares have underperformed the S&P/ASX 200 Index (ASX: XJO) by 18% and 42% respectively since June 2008, as shown above.

A small portion of my portfolio is held for defensive ASX shares such as Commonwealth Bank of Australia (ASX: CBA) and CSR Limited (ASX: CSR). However, I will continue to add companies with large opportunities still ahead of them.

Companies like Pro Medicus Limited (ASX: PME) and Jumbo Interactive Ltd (ASX: JIN) operate in underdeveloped and riskier markets. But the lack of market saturation means there could be much more growth in the future.

The post Here's how I plan to recession-proof my ASX share portfolio this year appeared first on The Motley Fool Australia.

And this one looks like it could stick. The consortium, made up of Farquhar's Skip Capital and Stonepeak Partners, has offered 25 cents per share to snap up the company. That's 2 cents higher than its previously rejected offer.

The Genex share price is surging on the news. It's up 6.82% to 23.5 cents at the time of writing, after repeatedly topping 8% throughout the day.

Let's take a closer look at the latest from the renewable generation and storage company.

Genex share price soars on upped takeover bid

It's been a long journey to get here, but Genex has finally granted Skip Capital's infrastructure fund and Stonepeak Partners due diligence.

The consortium first put forward a 23 cent per share bid, valuing the renewable energy company at $300 million, in late July.

And while the market responded with joy, sending the Genex share price 44% higher, the company wasn't impressed. Its board turned down the offer earlier this month, saying it undervalued the company.

Though, it allowed the consortium access to some due diligence information in the hopes doing so would result in a higher bid.

And lo and behold, a higher bid has materialised. The new offer represents an 85% premium on the undisturbed Genex share price and a 92% premium on its three-month volume weighted average.

It also values the company at around $346 million.

The company's board hopes the consortium follows its proposal with a binding bid after it undergoes due diligence.

If such a bid is priced at 25 cents per share or higher, Genex will recommend it to shareholders. That's as long as an independent expert agrees it's in investors' best interests and no better offer comes along.

If all goes to plan, the consortium will snap up Genex via a scheme of arrangement in the not-so-distant future.

The post Genex share price leaps 8% on revised takeover bid from Atlassian founder appeared first on The Motley Fool Australia.

Genex shares finished the day at 22 cents each, up 2.33%, after hitting 22.7 cents a share earlier today. That was a jump of 5.58%.

The interest comes after the company knocked back a $300 million takeover proposal on Monday. 

Let's check the latest on Genex's takeover prospects.

A new suitor for Genex? 

As reported by The Australian, an undisclosed group is "making inquiries around the market about launching a rival bid for the business".

The group is said to be "not private equity" and a company that operates in Australia.

The speculated names include Sundance Energy Australia Ltd (ASX: SEA), Alinta Energy, and other companies with energy assets on Australia's east coast.

On Monday, Genex rejected an unsolicited acquisition attempt from a group consisting of Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital and Stonepeak Partners. The bid offered 23 cents per share for the company.

Genex power's board of directors said the offer undervalued the company but it was open to a counter-offer with a revised amount.

Share price snapshot

The Genex share price is up more than 11% year to date, gaining a remarkable 85% in the last month.

Despite the recent action though, the company's share price is still 5% lower than it was this time last year.

The company has a current market capitalisation of $308 million.

The post Genex share price climbs 6% amid new takeover rumours appeared first on The Motley Fool Australia.

ASX 200 energy shares, including AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG), alongside smaller energy shares outside the ASX 200 like Genex Power Ltd (ASX: GNX), are all working to transition toward cleaner and eventually wholly renewable energy sources.

Net zero by 2050 comes with a hefty price tag

According to Sohel Azad, an Islamic finance expert at Deakin Business School:

Public pressure to develop large-scale, high-cost, renewable energy infrastructure is huge. Australia has a bold plan to transform its energy market. Prime Minister Anthony Albanese plans to legislate ambitious carbon reduction targets, including net-zero by 2050, and the need to strengthen energy generation capabilities has only been exacerbated by the current gas crisis.

But the costs of developing renewable energy infrastructure on a national level can be prohibitive. Which is why Azad points to the as yet untapped potential of additional international funding sources to help Australia go green.

ASX 200 energy shares missing out on 'massive untapped demand'

According to Azad, sharia-compliant Islamic bonds would likely see strong demand to support green energy projects in Australia, like large-scale battery grid storage.

The bonds, called sukuk, don't pay interest to their holders. Instead, they're classified as securities, backed by tangible assets which enable investors to garner a share of the profits (or losses) when the assets are sold or traded.

Azad says that selling sukuk on the ASX could offer investment certainty for the energy transition.

Sukuk can only be used on ethical investments, "a natural fit for funding green energy projects".

"Sukuk has already been introduced in many international markets and Australia must be quick to take advantage of the opportunities," he said.

And the opportunity appears vast, with Deakin estimating Islamic finance is almost a $3 trillion global industry.

Which could open the door to some hefty funding for ASX 200 energy shares' green projects.

"We simply don't have the public or private funds in Australia to deliver some of these ambitious projects," Azad said. "By selling sukuk on the ASX, and cross listing in other exchanges overseas, the government and corporates can attract more foreign investment in renewable energy projects."

Azad added:

There is a massive untapped demand from Islamic investors for sustainable investment opportunities like this that are sharia compliant, and Islamic finance firms are particularly interested in investing in projects that address the United Nation's Sustainable Development Goals.

The post 'Massive untapped demand': The $3 trillion opportunity ASX 200 energy shares could be missing appeared first on The Motley Fool Australia.

The renewable energy company's board said the 23 cents per share offer – representing a 70% premium at the time of its announcement – undervalues the company. Though, it has left the door open for a revised proposal.

The Genex share price is 21.75 cents at the time of writing. That's 1.16% higher than its previous close.

Let's take a closer look at the latest news from the ASX-listed company.

Genex share price gains despite rejected bid

The Genex share price is lifting this morning. Its gain comes amid news the company won't be granting due diligence following a $300 million takeover bid.

The unsolicited bid was put forward by a consortium made up of Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital and Stonepeak Partners last week.

The company's board says it believes the bid undervalues the company and, thus, isn't in shareholders' best interests.

However, it will allow the consortium access to certain limited due diligence information. It hopes the extra information will help the party put together a revised acquisition proposal.

The Genex board also outlined reasons it believes the company has a bright future, even if it isn't offered a higher bid.

They included the company's renewable generation and storage assets, which are worth more than $1 billion.

It also noted Genex's position as the ASX's only renewable energy and storage pure play and the company's 100 megawatts of solar projects – already benefitting from higher pricing.

Finally, it noted the company's "significant" pipeline of renewable generation and storage projects.

The Genex share price surged 44% when the takeover bid was announced alongside the company's quarterly report last week.

Today's gain leaves Genex shares 7.5% higher than they were at the start of 2022. Though, they are 10% lower than this time last year.

The post No deal: Genex share price lifts as $300m takeover bid rejected appeared first on The Motley Fool Australia.

The Genex share price launched 51.8% on open to reach 20.5 cents. At the time of writing, it has slipped slightly to trade at 19.5 cents – representing a 44.44% gain.

Let's take a closer look at what's driving the renewable energy company's stock on Monday.

Genex share price takes off on takeover bid

It's shaping up to be a huge day for the Genex share price, which rocketed more than 50% in early morning trade.

The gains came after the company confirmed it had received a takeover bid valuing it at more than $300 million and representing a 70% premium on Friday's close.

The 23-cent per share cash bid was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital and Stonepeak Partners.

The company's board noted the acquisition proposal was unsolicited and said it "has not yet formed a view on [the bid's] merits".

The bid comes after Skip Capital snapped up a 19.99% stake in Genex's stock last week.

Genex posts record revenue and cash flow

It certainly makes for an exciting period for the company, which posted its first full year of positive cash flow this morning.  

Genex's operating cash flow for financial year 2022 came to $4 million. Its solar farms brought in record unaudited revenue of $26.1 million in that time while the company reported $8.6 million of revenue for the June quarter.

Genex benefited from strong electricity prices last quarter while construction continued at its Kidston Pumped Hydro Project and Bouldercombe Battery Project.

The company's renewable energy generation and storage portfolio is worth more than $1 billion.

The post Genex share price rockets 50% on confirmed takeover bid appeared first on The Motley Fool Australia.

The 23 cents per share bid for the company was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar's Skip Capital.

The Genex share price was 13.5 cents at its previous close.

Let's take a closer look at the takeover proposal announced by the company this morning.

Genex share price on watch following takeover bid

The Genex share price could be about to take off after the company confirmed a previously-speculated takeover bid on Monday. Additionally, the company released its quarterly results today.

A consortium made up of the Skip Essential Infrastructure Fund and Stonepeak Partners has placed a 23 cent per share bid for Genex, representing a total valuation of more than $300 million and a 70% premium on the company's previous close.

Skip Capital – headed by Farquhar's wife, former Hastings Funds Management director Kim Jackson – snapped up a 19.99% interest in the renewable energy company's stock last week.

Genex's portfolio of renewable energy generation and storage projects is worth more than $1 billion.

Commenting on the bid, Jackson said, courtesy of The Australian:

Skip Essential Infrastructure Fund and Stonepeak bring the experience and insight required to allow Genex to play a substantially larger role in Australia's energy transition.

The Genex board hasn't promised it will engage with the takeover bid. It noted a potential acquisition would be subject to its recommendation, due diligence, and regulatory approvals. Notably, it would need the approval of the Foreign Investment Review Board.

And in other news likely to move the Genex share price today, the company achieved record revenue and its maiden full-year positive cash flow last financial year.

Its solar farms brought in $26.1 million of revenue (unaudited) over financial year 2022. Meanwhile, its net operating cash flow reached $4 million.

The post Genex share price in focus amid Atlassian co-founder's $300m takeover bid appeared first on The Motley Fool Australia.

They span several sectors including resources, materials, and energy. Think lithium explorers, battery producers, electric vehicle manufacturers, clean energy providers… arguably, they're all in the renewables space. But for now, let's just focus on clean power producers.

Power has been a hot topic in the Australian economy of late. Electricity prices have skyrocketed and are contributing significantly to rising inflation, which is currently running at 5.1% per annum.

This problem highlights the urgent need for more renewable energy sources. Not only to lower power costs for consumers but also to support a lurching grid at risk of more frequent blackouts and outages.

So, why did several ASX renewable energy shares fall in June?

ASX renewable energy shares dip in June

Well, let's remember that ASX renewable shares are a relatively young and growing part of the market. And like any growth sector, it will have its ups and downs — and that's what we saw in June.

Mind you, June was a volatile month for ASX shares in general. The S&P/ASX 200 Index (ASX: XJO) lost 8.9% and the S&P/ASX All Ordinaries Index (ASX: XAO) lost 9.5% over the month.

First up, let's look at the broad picture.

Clean energy shares generally form part of the utilities segment of the ASX energy sector. The S&P/ASX 200 Energy Index (ASX: XEJ) fell 0.3% in June and is up 16.9% over the year to date.

There's no index for ASX renewable shares, however, we can look to the VanEck Global Clean Energy ETF (ASX: CLNE) for guidance. It's an exchange-traded fund trading on the ASX and it's chock-a-block full of global renewable energy companies. So it serves as a good proxy for ASX renewable energy shares.

The VanEck Global Clean Energy ETF share price dipped 2.5% in June. Year to date, it's down 9.6%.

Here's how some of the big players performed

Let's look at the performance of the bigger players among ASX renewable energy shares in June.

The Meridian Energy Ltd (ASX: MEZ) share price dropped 3% in June. Year to date, Meridian shares are down 6.5%.

Meridian is New Zealand's largest energy producer and uses 100% renewables. It owns five wind farms, scores of commercial solar arrays, and seven hydropower stations, including the country's largest.

The Mercury General Corporation (ASX: MCY) share price dropped 9.5% in June. Year to date, Mercury shares are down 16.5%.

Mercury is another New Zealand-based green energy provider that uses 100% renewables. The company owns nine hydro stations that supply 10% of the country's electricity annually. It owns five geothermal plants and four wind farms. It's currently building what will be New Zealand's largest wind farm.

The Infratil Ltd (ASX: IFT) share price rose by 0.6% in June. Year to date, Infratil shares are down 7.7%.

Infratil is a different kind of ASX renewable energy share. It's an infrastructure investment company that owns several green energy assets in New Zealand.

Genesis Energy Ltd (ASX: GNE) shares lost 0.15% in value in June. Year to date, Genesis shares are down 6.9%.

Genesis is a leading New Zealand electricity and gas retailer that owns a bunch of thermal and renewable generation assets.

Some ASX renewable shares had a shocker

The Genex Power Ltd (ASX: GNX) share price dropped 14% in June. Year to date, Genex shares are down 32.5%.

Genex is an Australian power generation company specialising in the generation and storage of renewable energy.

Ongoing challenges for ASX renewable energy shares

As my Fool colleague Bernd Struben reported in March, the renewables sector has experienced years of underinvestment, so it's difficult to ramp up production rapidly to meet today's soaring demand.

Plus, many clean energy companies are spending a lot — as you do when you're in growth mode — which is narrowing profit margins.

And it appears ASX investors don't like that, especially when a booming commodities cycle is delivering massive profits to the big resources companies digging fossil fuels out of the ground.

The post Here's why ASX renewable shares slipped in June appeared first on The Motley Fool Australia.

A notable item for energy-conscious investors was the release of Clean Energy Australia's 2022 report. This showed Australia achieved a new record for its portion of electricity generated by renewables in 2021 at 32.5%.

However, renewable energy advocates were disheartened by the latest federal budget. According to the document, climate spending will tumble 35% over the next four years under the current government.

So, how did it all pan out for ASX renewable shares in the March quarter?

ASX renewable shares present a mixed bag of results

Two companies running on low charge

As with any sector over a three-month period, there are usually winners and losers. Unfortunately for Genex Power Ltd (ASX: GNX) and Mercury NZ Ltd (ASX: MCY), both companies found themselves in the negative return bucket.

Firstly, renewable energy project developer Genex Power suffered a significant fall during the quarter. By the end of March, Genex shares were 27.5% lower than at the beginning of the year. Investors appeared unimpressed by the company's first-half results as it posted a net loss after tax of $4.41 million. However, revenue increased 51% to $11.96 million during the period.

Secondly, Mercury experienced a 2.8% reduction in its share price by the end of the March quarter. The ASX-listed renewable share also unleashed its half-year results in February. Though, the numbers didn't instil much confidence in shareholders. For instance, revenue fell 7.5% compared to the prior corresponding period to $873 million. Likewise, underlying earnings after tax dropped 13% to $20 million.

What about the green winners of the March quarter?

It wasn't all doom and gloom for ASX renewable shares during the recent quarter. On the other side of the fence, Meridian Energy Ltd (ASX: MEZ) managed to gain 4.1%. Yet another New Zealand-based ASX-listed electricity generator, Meridian secured a positive return despite posting a 36% fall in its net profit after tax (NPAT).

Lastly, to find a quarterly return greater than 5% we need to relax the definition of an ASX renewable share. Including companies that produce some of their electricity via renewable assets, as opposed to the majority, we unlock one ASX share that served up a gain of 25.7% during the period.

The company is AGL Energy Limited (ASX: AGL) and it has wowed investors as its share price has continued to strengthen since the beginning of 2022.

Already this year, AGL has rejected two takeover bids from entrepreneur Mike Cannon-Brookes and Brookfield Asset Management. The energy company's board has held firm that it believes it is worth more than $8.25 per share.

The post Rain or sunshine for ASX renewable shares in the March quarter? appeared first on The Motley Fool Australia.

Now, before we continue, there's no single clear definition of what constitutes an ASX renewable share.

Traditionally, you'd expect them to belong to companies providing sustainable energy sources outside of fossil fuels. Say solar, wind, hydro, tidal, or geothermal.

But, these days, you could argue that lithium miners producing a material vital to battery power storage count among that group too. But then electric vehicles need nickel and copper too.

So, while there's merit in that argument, for the purposes of this article, we'll stick to the traditional definition of ASX renewables shares.

How have these ASX renewable shares performed in 2022?

Contact Energy Ltd (ASX: CEN) has a market cap just north of $6 billion. The New Zealand-based electricity provider operates 11 power stations and produces 80-85% of its electricity from renewable hydro and geothermal stations.

The Contact Energy share price is down around 4.3% so far in 2022.

Fellow ASX renewable share, Mercury NZ Ltd (ASX: MCY) has a market cap of just under $7.2 billion. The company generates more than 15% of New Zealand's electricity and all that electricity is now generated from renewable sources.

The Mercury NZ share price is down almost 8% year-to-date.

Then there's small-cap ASX renewable share Genex Power Ltd (ASX: GNX), with a market cap of $197 million. The Aussie-based company is focused on the generating and storing renewable energy, with various solar, hydro, and wind assets.

The Genex Power share price is down 27.5% in the New Year.

How does this compare to ASX fossil fuel shares?

While not all ASX fossil fuel focused shares have shot the lights out this year, many have rocketed higher on the back of soaring prices for everything from coal to oil to gas.

The Woodside Petroleum Ltd (ASX: WPL) share price, as one example, has soared 42% in 2022, with crude oil hitting its highest levels in 14-years following Russia's invasion of Ukraine and pre-existing supply constraints.

Yancoal Australia Ltd (ASX: YAL) has performed even better, with thermal coal prices breaking all-time highs last month. The Yancoal share price is up 61% this calendar year.

What the experts are saying

Addressing the lagging performance of many ASX renewables shares, RC Global's chief investment officer Roy Chen said (quoted by The Australian Financial Review):

It's a combination of some clean energy stocks being driven up the year before, then becoming relatively expensive, while others do have some real issues. But I see the biggest problem being too many of these ETFs, or even active managers in the space, chasing very similar companies. Then when the tide turned, investors deserted the ETFs, causing outflows.

Chen added that while many fossil fuel companies have been waiting to expand their operations, a lot of ASX renewable shares have been spending big to upscale at a time when commodity prices are soaring.

"There are some of these clean energy companies that have issued profit warning after profit warning, and warned profit margins could even turn negative because costs are becoming so much," he said.

And the outperformance advantage could lie with ASX fossil fuel shares over ASX renewables shares for some time yet.

According to an analyst at Wentworth Williamson, Martin Marais:

With geopolitical issues and an industry that is incapable of rapidly ramping up production after years of underinvestment, it is likely that the supply/demand imbalance may take many months, if not years, to fix. In our opinion, demand is unlikely to fall much while there are big supply issues in terms of new discoveries and bringing extra projects online.

At US$80 per barrel for oil and with higher gas prices, we believe that Australian oil and gas producers present good value at their current prices, and accordingly we have invested a meaningful portion of our fund into our best picks among them.

What's next for ASX renewables shares?

But don't count ASX renewables shares out just yet.

According to VanEck Australia senior associate for investments and capital markets Alice Shen (quoted by the AFR):

This trend towards clean energy stocks too will likely gain momentum as energy consumers seek substitutes for fossil fuels and the demand for renewable energy rises to meet climate change carbon emissions targets.

Clean energy assets are typically pro-cyclical and tend to overperform when the economic cycle expands and capital spending on renewable energy increases. We could therefore see clean energy companies are likely to rally in the months ahead as the world seeks cleaner and more reliable supplies of energy.

The post Why are ASX renewable shares struggling in 2022? appeared first on The Motley Fool Australia.

• The Genex share price is down today, and has dropped 24% in 12 months
• The energy utility company has hit a construction milestone at its K2-Hydro project
• Today's announcement indicates the project is on track for use in Q4 2022

The Genex Power Ltd (ASX: GNX) share price is down today, but that doesn't mean its operations are.

This morning, the clean energy generation company announced it had made ground-breaking progress with the construction of its flagship Kidson project.

At the time of writing, the Genex share price has fallen 2.63%, trading at 18.5 cents apiece.

Let's take a closer look…

K2-Hydro construction on-track

The 250MW Kidson Pumped Storage Hydro Project, or K2-Hydro for short, is the flagship project of Genex's Kidson Clean Energy Hub in far north Queensland.

Once constructed, it will be the third-largest electricity storage device in the country — with a capacity of 2,000 megawatt hours [MWh] — producing and delivering on-demand renewable energy during high periods.

With a totally-funded construction cost of $777 million, its the first of its kind to be privately developed, according to the company, and will have an overall lifespan of 80 years.

In this morning's announcement, Genex Power advised that the project's construction was on track, with a chunk of the to-do list already checked off ahead of schedule.

Major construction in the main access tunnel has been underway over the past two months. Now, the company has pushed ahead with two manned shifts per day delivering round-the-clock underground tunnelling.

This will progress the construction stage by 8 metres per day for the next 6 months — pushing towards the project's goal of first power generation by the fourth quarter of 2024.

What did management say?

Commenting on the update, Genex CEO James Harding said:

Following an intense period of site establishment and preparation works, I am delighted that the EPC Contractor JV of McDonnell Dowell and John Holland has formally commenced the underground excavation works for the Kidson Pumped Storage Hydro Project.

This represents a significant milestone in the project construction timeline which was achieved ahead of schedule.

We look forward to working alongside the EPC JV and keeping the market updated as the program continues to push ahead over the course of this year.

Genex share price snapshot

The Genex share price has seen a volatile 12 months, dropping overall by almost 21%.

In late November, the Genex share price saw its 52-week-low of 18 cents, though no company news was released.

The company has a market capitalisation of $197 million at the time of writing.

The post Genex Power (ASX:GNX) share price is sinking today despite project milestone appeared first on The Motley Fool Australia.

Chief investment officer for AXA Investment Managers' Core Investments Chris Iggo says decarbonisation could increasingly "determine capital allocation and investment opportunities" in the future.

Let's look at why the fundie is bearish on decarbonisation, as well as which ASX shares operate in the area.

The market in 2022

While the risk of COVID-19 causing havoc on share markets continues as the new year approaches, concerns of inflation have also started to surface.

According to Iggo, during the pandemic, policymakers supported economic growth by cutting interest rates and "loosening fiscal purse strings". But now, he says, "the era of pandemic-crisis monetary policy is coming to an end".

As a result, central banks will likely scramble to reduce inflation – a challenge that's not so simple. Iggo commented:

The impact of the pandemic on global economic trends … will take some time to really understand. For now, however, central banks will err on the side of caution and will need to be convinced – by evidence of persistent second round effects – that the decades-long period of low inflation is coming to an end.

Luckily, Iggo believes investors can look forward to "decent returns" while central banks make necessary changes.

That's because trends like energy transition are still pushing companies to make structural changes.

ASX renewable energy sector on watch

Iggo is optimistic about renewable energy in 2022. Particularly, as energy prices are likely to continue increasing. He commented:

Energy prices rose in the second half of 2021 – a key reason why broader inflation has also increased – yet, there has been no global approach to pricing carbon, which could push energy prices even higher. When it comes, and it will, the economics will swing sharply in favour of renewably produced energy and that will quickly allow upstream activities to benefit.

He also noted that the ongoing COVID-19 recovery, climate innovation, and re-purposing supply chains may bring "strong tailwinds for equity investors", leaving investors with "opportunities to profit".

Finally, he stated, the march towards decarbonisation will be driven by the market even more so in 2022:

Investors are playing a key role in supporting decarbonisation through asset allocation decisions, in engagement with companies on transition plans, and by supporting new technologies and business models that rate highly in terms of ESG.

With that in mind, here are some shares to consider:

3 ASX renewables shares

Genex Power Ltd (ASX: GNX)

Genex Power is working to build a portfolio of renewable energy projects within Australia.

It operates projects producing power from solar, hydro energy, and wind, as well as a battery storage project.

Right now, its share price is 20 cents, 9% lower than it was at the start of 2021.

Infratil Ltd (ASX: IFT)

Infratil is a largely New Zealand-focused company investing primarily in energy, transport, and social infrastructure businesses.

The company owns a business that operates 22 New Zealand hydropower stations. It also owns others that develop wind and solar generation in North America, Europe, and Asia.

Infratil shares are currently trading for $7.60, 6% higher than they were at the start of this year.

Contact Energy Limited (ASX: CEN)

Contact Energy also operates in New Zealand.

It retails electricity generated from geothermal and hydropower.

The company also produces power using thermal generation and supplies gas and broadband.

Shares in Contact Energy are swapping hands for $7.30. They've fallen 14% in 2021.

The post How might renewable energy investment opportunities play out in 2022? appeared first on The Motley Fool Australia.

Shares in the Australian power generation company have since retreated to 20.5 cents apiece, up 7.89 cents at the time of writing.

Under the deal, Genex's Bouldercombe Battery Project, operating out of Rockhampton, Queensland, will integrate Tesla's real-time trading and control platform, Autobidder. The aim is to "optimise dispatch behaviour from the BBP, maximising revenue and operating efficiency".

Genex CEO James Harding called the news a "key milestone" in moving the project towards a financial close.  

Why is the Genex share price lifting?

Back in early October, the company announced that Tesla would supply 40 of its Megapack utility-scale battery energy storage systems (BESS) to the project, and would be warrantied for 20 years. 

The agreement also states that Tesla "will provide a minimum level of contracted revenues to support project financing of the development of BBP", which will help push towards financial close. 

Investors appear to welcome the news as Australia moves towards a greener, more renewable future.

Genex has promised that its portfolio of renewable power projects will provide clean energy to more than 350,000 homes by 2025, offsetting almost two megatonnes of CO2 per annum. 

Here's how Genex has performed recently…

The Genex share price has appeared relatively stable over the past 12 months, up 7.89%.

It saw dips occurring in early April and towards the end of November — coinciding with the financing for the Kidston Pumped Hydro Storage Project (K2 Hydro), and the sudden sell of director Simon Kidston's shares just a few months later. 

At the time of writing, Genex has a market capitalisation of around $219 million.

The post The Genex (ASX:GNX) share price shot up 12% earlier today. Here's why appeared first on The Motley Fool Australia.

What is the climate report and what does it say?

In short, the latest IPCC report is not good news for the environment. The report estimates that global warming will reach 1.5 degrees Celsius by 2030 based on our current trajectory. Additionally, the study found that global temperatures have increased by 1.1 degrees since the industrialisation period. Unfortunately, Australia is even worse than the global average, with a 1.4 degree elevation.

Key takeaways:

• Global temperatures likely to increase 1.5 degrees Celsius by 2030 without action,
• Reforestation and carbon removal would be needed to get back under 1.5 degrees,
• Severe draughts, floods, and fires expected to increase,
• Australia needs to aim for Net-zero in the 2030s,
• Call for no more oil, coal, or gas exploration or infrastructure.

Eerily, the IPCC's climate report lands as catastrophic wildfires tear through Greece.

Why does this matter for ASX 200 shares

This could have a significant impact on the Australian share market, with many companies having exposure to natural resources reliant industries such as coal mining, oil drilling, and gas extraction, which are all energy-intensive activities with high carbon emissions.

ASX 200 shares such as Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and Ampol Ltd (ASX: ALD) are all being sold off today following the news.

Professor Lesley Hughes, who is a Pro-Vice-Chancellor and biologist at Macquarie University, said:

There must be no new oil, coal or gas exploration or infrastructure. We have got to stop subsidising fossil fuels. We've got to electrify everything and then run everything from renewable energy. We've got to change our diets.

Similarly, United Nations secretary-general Antonio Guterres highlighted there should not be any new coal plants built after this year. Meanwhile, the existing coal plants should be phased out by 2030 in OECD countries.

Obviously, if tighter regulations are put on oil, gas, and coal companies, this would likely cause pressure on the share prices of ASX companies in those industries.

On the other hand, Guterres also said, "By 2030, solar and wind capacity should quadruple and renewable energy investments should triple to maintain a net-zero trajectory by mid-century."

Such a rapid growth proposition could create a positive tailwind for renewable companies. Some ASX shares outside the top 200 that are geared towards renewables are enjoying a boost today. These names include Calix Ltd (ASX: CXL), Lion Energy Ltd. (ASX: LIO), and Genex Power Ltd (ASX: GNX)

The post What could the latest climate report mean for ASX 200 shares? appeared first on The Motley Fool Australia.

The Genex Power share price has had a poor month. At the time of writing, it's down 14% since this time last month.

However, today's news has given the Genex share price a much-needed boost. It's currently up 2.5%, trading for 21 cents.

Let's look closer at today's news from the renewable energy developer.

Kidston hydro storage project funding

This morning, Genex announced it's secured $660 million of financing to close contracts for its 250MW Kidston Pumped Hydro Storage Project.  

The final piece of the financing puzzle was the $3 million variation deed to the loan note subscription agreement it secured from the Clean Energy Finance Corporation.

Prior to that, Genex had received a $610 million debt facility from the Northern Australia Infrastructure Facility.

It also secured a $47 million project grant funding agreement from the Australian Renewable Energy Agency (ARENA), the McConnell Dowell Constructors Pty Ltd and John Holland Group Pty Ltd. Combined with the forgiveness of $9 million of convertible notes previously issued to ARENA by Genex.

In conjunction with Genex's fully underwritten fundraising of $115 million in late March, the project is now fully funded.

Construction is set to commence this month.

More about the project

The Kidston Pumped Hydro Storage Project is a first-of-its-kind venture into hydro energy.

It is utilising the abandoned Kidston Gold Mine in Far North Queensland, making use of pre-existing mining accommodation and road access.

It will integrate Genex's 270WM Kidston Solar Project.

The company claims it will be able to generate, store and dispatch renewable energy on demand during peak periods.

Commentary from management

Genex CEO James Harding welcomed the progress, saying:

I would sincerely like to thank our financiers NAIF, ARENA and the CEFC, together with the Queensland Government, for their continued and longstanding support of Genex and the project, without which the realisation of this iconic project would not be possible.

We look forward to updating the market when we commence construction at the Kidston site toward the end of this month.

Genex Power share price snapshot

The Genex Power share price is having a particularly volatile time on the ASX of late.

It's up by 28% over the last 6 months, but down 6% year to date. It's also up 57% over the last 12 months.

Genex has a market capitalisation of around $158 million, with approximately 1 billion shares outstanding.

The post Here's why the Genex Power (ASX:GNX) share price is up today appeared first on The Motley Fool Australia.