Day: October 5, 2021

The Lynas (ASX:LYC) share price is down 10% in a month. Here’s why

sad looking miner holding his head down

The Lynas Rare Earths Ltd (ASX: LYC) share price is having a month to forget.

At the time of writing, shares in the Malaysia-based rare earth elements (REE) miner are trading for $6.31 – down 2.02%. Over the course of the month, it’s been even worse for Lynas – losing 9.84% in value.

While the company hasn’t released any price-sensitive news to the market since August, something has clearly spooked investors.

Let’s take a closer look.

What’s going on with Lynas?

The first point to make is that the entire market is down. While the Lynas share price has fallen nearly 10%, the S&P/ASX 200 Index (ASX: XJO) has fallen 4.49%.

It’s the steepest monthly fall the market has seen since last year. Of course, that was due to the panic caused by the worldwide COVID-19 pandemic.

The mining sector has been hit especially hard during this time. For example, the BHP Group Ltd (ASX: BHP) share price has fallen nearly 14% and the Fortescue Metals Group Limited (ASX: FMG) share price has collapsed by more than 24%.

As The Motley Fool has previously reported, iron ore prices have taken a beating. China is set on an ambitious path to reduce its greenhouse gas emissions. This has resulted in a clampdown on domestic steel production and a shift away from iron ore in favour of low-emissions steel scrap.

According to S&P Global, “A few mill sources expected China’s steel output cuts to widen further in late-September or October, mainly as the overall cuts by mid-September have remained insufficient to keep the country’s 2021 crude steel output within 2020 levels.”

While Lynas does not mine the metal, companies within any one industry sector tend to move together on the ASX.

What could be affecting the Lynas share price specifically?

As one of my colleagues has previously brought to our readers’ attention: Lynas is a price taker. The Lynas share price tends to move with the price of REE.

Recent geopolitical tensions between the US and China appear to have spilled over to the broader ASX resources space, including the rare earths markets.

This is in addition to China placing restrictions on its domestic resource producers in 2021 to curb production rates. It is estimated that anywhere between 70% and 80% of the world’s REE deposits are in the People’s Republic.

Lynas share price snapshot

Over the past 12 months, the Lynas share price has risen an incredible 141%. Year-to-date, it is up a still impressive 50.2%. Its 52-week high is $8.05 per share and its 52-week low is $2.45 per share.

Lynas Rare Earths has a market capitalisation of approximately $5.7 billion.

The post The Lynas (ASX:LYC) share price is down 10% in a month. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in Lynas right now?

Before you consider Lynas, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lynas wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

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Motley Fool contributor Marc Sidarous 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 Bruce Jackson.

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Why is the Eagers Automotive (ASX:APE) share price lifting today?

carsales share price

The Eagers Automotive Ltd (ASX: APE) share price is blazing ahead on Wednesday after the company released its latest investor presentation. This presentation has been prepared by Eagers for its appearance at the 2021 Morgans Conference.

Investors are buying up shares in the automotive retailer following the release of this slide deck, which has given additional clarity to the company’s near-term outlook.

At the time of writing, the Eagers Automotive share price is attracting $15.02 per share. This reflects an increase of 3.94% on yesterday’s closing price of $14.45.

Eagers share price climbs amid presentation

Australia’s oldest listed automotive retail group has gained the attention of investors on Wednesday. Heading into afternoon trade, more than 315,000 shares have exchanged hands today. This is approximately 56% of the company’s average monthly trade volume.

It appears its latest investor presentation has been met with enthusiasm. So, what exactly is contained in this release that is being met with a rally in the Eagers’ share price today?

Firstly, the automotive retailer highlighted its rich and successful history of operating in the Australian market. Originally founded in 1913, Eagers has reached an honourable age of 108 — with the past 64 years being publicly listed.

Since 2005, Eagers has grown its underlying profit before tax from $20 million to $209 million in 2020. This is continuing to accelerate as its first half of 2021 saw profits hit $218.6 million.

The company now boasts an extensive partner portfolio consisting of the likes of Toyota, Ford, BMW, and Porsche. In fact, Eagers considers its portfolio unrivalled, with the top 15 vehicle manufacturers by volume represented.

From the presentation, Eagers has outlined its intention to build upon its existing history by implementing a few tech-driven additions. In turn, the company is partnering with fintech companies to help it offer new innovations.

These include its plan to sell vehicles at shopping centres and airports, through what it dubs as “Automall”. Additionally, Eagers will integrate online finance applications, a sales app, online services bookings, and SMS payments.

Positive outlook

Another factor bringing the Eagers share price into focus today is the macro conditions for the industry. Despite chip shortages causing some issues for vehicle manufacturers, Aussie demand for new cars has been strong. According to the Federal Chamber of Automotive Industries, new car sales increased 21% year on year to 83,312 in September. Eagers makes a point of this in its presentation, noting that demand continues to outstrip supply.

Additionally, the company expects further cost reductions driven by its investment in tech. At the same time, the company is targeting its merger and acquisition activity to deliver further revenue growth.

Finally, Eagers mentioned near-term impacts due to COVID-19. However, these issues are isolated in nature. The company’s underlying performance remains resilient. The company is optimistic for its future once COVID-19 restrictions begin to be eased.

Looking in the rear view

Over the past year, the Eagers Automotive share price has outperformed the benchmark index. Specifically, the automotive retailer has gained 40.8% over the 12-month period. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up roughly half as much over the same period.

As a result, Eagers is trading on a price-to-earnings (P/E) ratio of 11 times. This is slightly under the Australian specialty retail industry average of 11.4 times.

The post Why is the Eagers Automotive (ASX:APE) share price lifting today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Eagers Automotive right now?

Before you consider Eagers Automotive, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Eagers Automotive wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BMW. The Motley Fool Australia has recommended BMW. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Which ASX shares are leading the way in the ASX 300 today?

Concept image of blurry people outside an office with four revolving doors.

The S&P/ASX 300 Index (ASX: XKO) is back again in negative territory today, further weighing on yesterday’s losses.

During mid-afternoon trade, the ASX 300 is down 0.73% to 7,193.6 points. This means the index is down 1.18% so far this week.

Let’s take a look at which ASX companies are making headlines today.

Australian Strategic Materials Ltd (ASX: ASM)

A big mover on the ASX 300 is the Australian Strategic Materials share price, up 7.58% to $10.64.

The rare earth metals company’s shares are rebounding from dropping to a monthly low of $9.25 yesterday. The company released its full statutory accounts 2 weeks ago, providing information about its progress throughout the year.

However, a strong gain in the commodities markets could be a catalyst for its recent rise. The spot price for rare earths mineral, neodymium, is fetching around 777,500 Chinese yuan per tonne, up 24.9% year-to-date.

De Grey Mining Ltd (ASX: DEG)

Adding gains to the ASX 300 is the De Grey share price, up 6.6% to $1.13.

The gold mining company provided investors with an update yesterday on its Mallina Gold Project. The results from a scoping study identified “clear opportunities” for improvement.

In addition, the board approved the progression of the project to a pre-feasibility study with results expected in H2 2022.

It appears investors are continuing to buy De Grey shares in light of the positive announcement.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price is surging 5.72% to $3.88 in afternoon trade.

The energy producer is continuing to see its shares surge as the spot price of coal soars to record levels. The current price is a record high of US$269.50 a tonne, up almost 50% in a month.

The two world’s largest populations – China and India – have dwindling coal supplies, leading to power blackouts across Asia. This has led to demand soaring with supplies tightened in coal and liquefied natural gas markets.

And which ASX 300 companies are heading the other way?

The a2 Milk Co Ltd (ASX: A2M)

In decline today is the A2 Milk share price, down 7.06% to $6.06.

The infant formula company’s shares are under pressure following a class action lawsuit by Slater & Gordon Limited (ASX: SGH).

The law firm launched proceedings in the Supreme Court of Victoria alleging misleading or deceptive conduct by A2 Milk. This has caused investors to dump the company’s shares ahead of the court case.

A2 Milk advised it will vigorously defend the lawsuit.

Flight Centre Travel Group Ltd (ASX: FLT)

Also being weighed down by investors today is the Flight Centre share price, down 5.73% to $23.03.

The travel agent’s shares have fallen today with investors deciding to take profit off the table.

It’s worth noting Flight Centre shares reached a 52-week high of $25.28 on Tuesday. As such, short-sellers have increased their interest to about 11% of the company’s shares.

The post Which ASX shares are leading the way in the ASX 300 today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns shares of A2 Milk. 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 recommended A2 Milk and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why is the Hipages (ASX:HPG) share price leaping 6% on Wednesday?

An older man in an orange shirt paints the ceiling of a house.

The Hipages Group Holdings Ltd (ASX: HPG) share price is soaring higher today despite silence from the company.

In fact, Hipages hasn’t released any price-sensitive news to the market since it published its earnings for financial year 2021 in August.  Nonetheless, its stock is taking off on Wednesday.

At the time of writing, the Hipages share price has gained an impressive 6.48% to trade at $3.78.

That’s slightly lower than its intraday high of $3.94, which represented a 10.9% gain.

That’s a far better performance than the broader market. Right now, the S&P/ASX 200 Index (ASX: XJO) has fallen 0.63%. Meanwhile, the All Ordinaries Index (ASX: XAO) has dropped 0.59%.

Let’s take a closer look at the software-as-a-service (SaaS) provider’s brilliant day on the ASX.

Hipages stock surges on Wednesday

The Hipages share price has taken off today despite no news having been released by the company.

Though, Hipages isn’t alone in enjoying a day in the green.

The S&P/ASX All Technology Index (ASX: XTX) and the S&P/ASX 200 Info Tech Index (ASX: XIJ) are gaining despite the broader market’s struggles.

Right now, the All Tech index is up 0.31%, while the ASX 200 Information Technology sector has gained 0.71%.

Further, Hipages shares are flying off the shelf on Wednesday. At the time of writing, 497,227 of Hipages shares – around $2 million worth – have swapped hands today.

For context, an average month sees 210,839 Hipages shares traded.

While the cause of Hipages’ popularity today is unclear, it’s undeniable the market is enthused about the SaaS company’s stock.  

Hipages share price snapshot

Today’s boost has added to Hipages’ strong recent performance on the ASX.

Right now, it is 58.58% higher than it was at the start of 2021. It has also gained 54% since it debuted on the ASX in September 2020.  

The post Why is the Hipages (ASX:HPG) share price leaping 6% on Wednesday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Hipages Group right now?

Before you consider Hipages Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Hipages Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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. owns shares of and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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