To The Moon

As of the close on Friday,$S&P/ASX 200(XJO.AU)$ closed at 7,303.10 points, up 3.70% in the past 5 days. During the last 5 trading days, $Megaport Ltd(MP1.AU)$ was up 40.50%; $Capricorn Metals(CMM.AU)$ added 18.41%; $Evolution Mining(EVN.AU)$ was up 17.08%; $Bellevue Gold(BGL.AU)$ rose 16.36%; and $Virgin Money(VUK.AU)$ increased 15.88% 1. $Megaport Ltd(MP1.AU)$+40.50%: increased earnings guidance for FY23 by $3 million Megaport, a cloud technology company, has increased its earnings guidance for FY23 by $3 million. Megaport now expects its normalised EBITDA for FY 2023 to be in the range of $19 million to $21 million. This compares to its previous guidance range of $16 million to $18 million. Megaport expects FY24 results to surpass previous guidance of $41-46 million. The company is confident in its cash flow prospects for the current financial year to the extent that it has terminated a $25 million HSBC debt facility. The recent appointment of Michael Reid, a veteran from Cisco, as Megaport's CEO brought renewed leadership and potential strategic direction to the company. This change, combined with improved operating metrics, likely generated positive sentiment among investors and contributed to the stock's rise. Shares reached new heights for the year. 2. $Capricorn Metals(CMM.AU)$ +18.41%: achieved record annual production in FY 2023 Capricorn Metals Ltd explores for, evaluates, and develops mineral properties in Australia and Madagascar. On 11 July, the gold miner revealed that it achieved record annual production in FY 2023. Annual gold production of 120,014 ounces for FY23 at its Karlawinda gold project in Western Australia falls within the company's guidance range and reflects strong operational performance. Additionally, Capricorn Metals ended June 2023 with a total of $110.3 million in cash and gold on hand. This indicates a healthy financial position for the company. 3. $Eaton Vance Municipal Income Trust(EVN)$ +17.08%, $Bellevue Gold(BGL.AU)$ +16.36%: benefit from gold rally Evolution Mining Limited engages in the exploration, mine development, mine operations, and sale of gold and gold-copper concentrates in Australia and Canada. Bellevue Gold Limited, together with its subsidiaries, engages in the exploration and evaluation of gold properties in Australia. Affected by gold spot price rebound and good news from its peer $Capricorn Metals(CMM.AU)$ , $Evolution Mining(EVN.AU)$ and $Bellevue Gold(BGL.AU)$ also rose this week. Gold prices were near one-month highs on Thursday, driven by a fall in the dollar and Treasury yields, as investors anticipated that the U.S. Federal Reserve might soon end its rate-hike cycle. The decline in the dollar index, which reached its lowest level in over a year, made gold more affordable for overseas buyers. Additionally, the drop in U.S. Treasury yields reduced the opportunity cost of holding non-yielding gold. Market expectations for further rate hikes by the Federal Reserve have decreased, although another rate hike is still anticipated this month. Higher interest rates typically increase the opportunity cost of holding gold, which doesn't provide yield. 4. $Virgin Money(VUK.AU)$ +15.88%: passed bank stress test Virgin Money, a UK-based bank, experienced a significant jump of up to 8.4% to A$3.11. This marked the largest intraday percentage gain for the shares since November 22, 2022. The surge in Virgin Money's shares, along with several other British banks, was driven by the Bank of England's announcement regarding its annual stress test. The central bank stated that the test results showed that all eight major lenders, including Virgin Money, would be able to handle rising interest rates in a stressed environment. This positive assessment from the Bank of England regarding the resilience of the banking sector boosted investor confidence and contributed to the increase in Virgin Money's stock price.