Month: May 2022

The Goodman Group (ASX: GMG) share price is on form on Friday.

In afternoon trade, the industrial property company’s shares are up over 3% to $19.51.

Why is the Goodman share price charging higher?

As well as getting a boost from the share market rebound today, the Goodman share price was given a lift from a broker note out of Goldman Sachs.

According to the note, the broker has initiated coverage on the company’s shares with a buy rating and $25.00 price target.

Based on the current Goodman share price, this implies potential upside of 28% even after today’s solid gain.

What did the broker say?

Goldman made the move due to its belief that Goodman is well-placed for growth in the coming years due to strong demand for industrial property.

It commented:

Our view of GMG is supported by a solid outlook for the Industrial sector more broadly, with a number of favourable fundamentals underpinning future long-term demand for industrial space (e.g., increasing e-commerce penetration and supply chain modernisation).

Given GMG’s preference to own, develop and manage high-quality industrial assets in key infill markets globally, we believe it is well-positioned to capture market rental growth, which when coupled with elevated investment demand for industrial assets will assist in contributing to AUM growth through increasing valuations (against a backdrop of rising rates).

What is the broker forecasting?

Goldman Sachs notes that Goodman has been growing its earnings at a strong rate in recent years. It is expecting more of the same this year and is tipping the company to outperform its guidance.

And while the broker suspects that its earnings growth will slow in the years to come, it still expects this to be at an above average rate.

GMG has developed a track record of beating initial growth guidance provided to the market and we expect GMG to deliver FY22 operating EPS growth of ~23% (vs. company guidance of 20%), largely driven by our expectation of a stronger contribution from developments and performance fee recognition. We expect above average near-term earnings momentum to continue, albeit at a slower rate and forecast an FY22-24 EPS CAGR of ~13% (vs. c.9% EPS growth over the past nine years).

The post Goodman share price charges higher following bullish broker note appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Broker names 3 more ‘champion’ ASX 200 shares to buy and hold
• 2 strong blue chip ASX 200 shares to buy after the market selloff according to analysts
• Is the Goodman share price a big opportunity?
• Best ASX shares to buy in May 2022

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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TGIF! That’s probably what many investors are feeling today as the S&P/ASX 200 Index (ASX: XJO) stages what would surely be a much-welcomed rebound after a week of relentless heavy selling. At the time of writing, the ASX 200 is up by a healthy 1.7% to back over 7,050 points.

So let’s delve deeper into these positive moves and check out the ASX 200 shares currently topping the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

South32 Ltd (ASX: S32)

Our first ASX 200 share to take a look at today is the diversified miner South32. South32 has had a sizeable 10.91 million shares swap hands as it currently stands. There hasn’t been any news out of the miner today, save for the typical share buyback notice, reflecting the company’s ongoing program. 

This could be lifting volumes in itself. But the probable cause here is likely to be South32’s bumpy share price performance today. The company rose as high as $4.46 in early trade this morning after closing at $4.37 yesterday but has since pared back these gains to $4.38, a gain of 0.23%. 

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is next up this Friday. Telstra has had a notable 13.47 million of its shares trade on the markets today. Again, we have no real news out of Telstra today, save for another share buyback notice. However, Telstra shares have blossomed today. The telco is currently up almost 2% at $3.95 a share. It’s likely to be this healthy share price movement that is behind this elevated trading volume we see. 

Pilbara Minerals Ltd (ASX: PLS)

And our third, final and most traded ASX 200 share this Friday goes to lithium producer Pilbara minerals. Pilbara has had 18.64 million of its shares bought and sold on the markets today. We still haven’t seen any news out of Pilbara in May so far. 

But Pilbara shares have been rather volatile during today’s trading session. The company opened well in the green, rising as high as $2.54 a share. But the company has since descended back into loss territory, falling to $2.40 just after lunchtime. As it currently stands, Pilbara has bounced back and is now at $2.47 a share, up 0.82% for the day. It’s this volatility that is likely behind the high share volumes we are seeing. 

The post Here are the 3 most heavily traded ASX 200 shares on Friday appeared first on The Motley Fool Australia.

More reading

• Why is the Magellan share price up 7% today?
• ASX 200 midday update: Block and Xero rebound, gold miners fall
• The Soul Patts dividend is being paid today. Here’s what you need to know
• 2 ASX dividend shares that brokers are tipping as buys right now
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. 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 positions in and has recommended Telstra Corporation 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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It’s been a happy day and a relief-filled end of the trading week for ASX shares so far this Friday.

At the time of writing, the ASX 200 is up a healthy 1.77% at just over 7,060 points. But the Block Inc (ASX: SQ2) share price is shooting even higher.

Block shares are currently up a whopping 14.37% at $114.26 each after closing at just $99.90 yesterday. The shares went as high as $114.58 earlier in today’s session, which was a rise of close to 15%.

So what’s behind Block’s dramatic shift upwards today? Well, to place things in context, Block’s rise comes after the company was one of the worst-performing ASX shares on the share market yesterday.

While the ASX 200 ended up shedding 1.75% during Thursday’s trading, Block shares lost a whopping 17.6%. This came after Block’s US iteration fell by a similar amount on Wednesday night (our time) following some weakness across its sector. Last night saw Block’s US listing shoot 6.37% higher to US$75.76 a share.

So right off the bat, we can probably say that today’s moves are an elastic band-like bounceback from such a dramatic loss yesterday.

Block share price shoots the moon

But there’s another factor we can also consider. As reported by National Australia Bank Ltd (ASX: NAB)’s NABtrade, analysts at Wolfe Research have just come out and called the recent sell-off in Block shares “unwarranted”.

Wolfe Research says that the slide in the US-listed Block shares (which applies by extension to the ASX’s SQ2 shares) “can be attributed to bearish read-throughs from companies that reported earnings in the buy-now-pay-later (BNPL), lending and crypto spaces”.

Here’s some more of what Wolfe said:

We believe some have been interpreting the results/commentary from AI lending platform Upstart Holdings Inc as a negative for SQ given the perception that BNPL users are higher risk borrowers and the thought of not being able to sell loans to investors… Shares of some BNPL players and consumer lending firms came under pressure this week after UPST lowered its annual forecast…

In addition to the impact from UPST, Wolfe Research says investors may have been influenced by cryptocurrency exchange Coinbase Global Inc‘s forecast of a sequential drop in trading volumes in Q2…

As bitcoin accounts for about 24% of trading volume and 42% of assets on COIN’s platform, analysts believe SQ investors may have been reading through to potential further declines in SQ’s bitcoin revenue and gross profit… [Wolfe] believes pressure on share driven by these headlines are overblown and investors have the opportunity to be tactical around SQ.

So it’s possible that some investors agree. Whatever the true reason for Block’s eye-watering rises today, no doubt investors will be very pleased with what they see.

At the current Block share price, this ASX 200 share has a market capitalisation of US$43.98 billion.

The post Block share price rebounds 15% as analyst calls sell-off overblown appeared first on The Motley Fool Australia.

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• Why 5E Advanced Materials, Block, Neometals, and Xero shares are racing higher
• ASX 200 midday update: Block and Xero rebound, gold miners fall
• Blast off! Why is the Zip share price zooming on Friday?
• Tech turnaround: ASX 200 tech shares surge higher on Friday
• Why Block, IDP Education, Monash IVF, and Xero shares are dropping

Motley Fool contributor Sebastian Bowen has positions in Bitcoin, Block, Inc., Coinbase Global, Inc., and National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Block, Inc., Coinbase Global, Inc., and Upstart Holdings, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Upstart Holdings, Inc. 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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On Thursday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.

Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why they are bearish on them:

ASX Ltd (ASX: ASX)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $74.00 price target on this stock exchange operator’s shares. This follows the announcement that its CHESS replacement project has been delayed from its April 2023 go-live target date. While the broker was expecting such a delay, it warned that this could mean operating costs will be higher for longer. It also sees risks for write downs on its prior investment expenditure if it has to switch approach. The ASX share price is trading at $81.92 on Friday.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Macquarie reveals that its analysts have retained their underperform rating and $90.00 price target on this banking giant’s shares. Macquarie suspects that CBA could struggle to outperform its rivals in respect to revenue growth in the coming years due partly to sustained mortgage competition. In light of this, it feels the company’s shares don’t warrant their premium valuation. The CBA share price is fetching $101.98 this afternoon.

Insurance Australia Group Ltd (ASX: IAG)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $4.05 price target on this insurance company’s shares. While Morgan Stanley sees rising interest rates as a positive for IAG, it appears to believe it is too soon to get excited. Especially given how inclement weather could lead to higher claims. The IAG share price is trading at $4.62 today.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Inflation to ‘peak shortly’: CBA boss says markets have priced in too many rate rises
• What is the dividend yield on IAG shares in May?
• Broker says the CBA share price is expensive and a sell
• 5 things to watch on the ASX 200 on Friday
• Why CBA, Incannex, Judo Capital, and Orica shares are rising

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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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It’s been a tough month so far for the Boral Limited (ASX: BLD) share price which, at yesterday’s close, had lost 9.52% of its value since 1 May.

However, the building products company has joined in the broader market recovery today and is currently up 1.70%, trading at $3.29. For context, the S&P/ASX 200 Index (ASX: XJO) is up 1.71%.

What’s beating Boral down?

There has been no price-sensitive news out of Boral since its trading update and FY22 guidance on 22 March. However, there is some industry news today.

According to reporting in The Australian, Australia’s largest brick and tile manufacturer, Brickworks Limited (ASX: BKW) is entering the contest for the acquisition of competitor BGC.

BGC is a building materials company worth more than $1 billion and operating exclusively in the West Australian market. It was owned by the late billionaire Len Buckeridge. It’s now for sale through investment bank Macquarie Capital and PwC, according to the report.

Perth-based BGC owns the Midland Brick and Brikmakers brands. The article quotes IBISWorld estimates that the brands have about a 5% share of the country’s overall brick market. The brands were previously owned by Boral.

According to the article:

While the Australian Competition & Consumer Commission would oppose an acquisition by
Brickworks of its business, the thinking is that the $3.4bn Australian-listed group could get
around that opposition by offloading some of its own assets in that market.

The understanding is the family members of Buckeridge … want to sell it in one line to prevent tax leakage. But given the eclectic nature of the company, buyers will form consortiums for an acquisition.

Adbri has indicated an interest in BGC’s downstream assets, thought to be its concrete plants and
quarries, with the ACCC likely to block any deal to buy its cement facilities. The Seven-controlled Boral is expected to take a look, while some believe that Holcim and Heidelberg will form a consortium to bid for the assets with their joint venture Cement Australia included.

Other headwinds for the Boral share price

Boral told the market back in March that poor weather and increased energy costs had put a dampener on its earnings. The company said its sales were lower due to building work being held up by major rain events in New South Wales and Queensland, as well as sharp increases in fuel and coal prices.

What do the experts think?

As fellow Fool Zach reported on 19 April, Boral was a buy at that time for Macquarie and Barrenjoey. It was a hold for Credit Suisse, Morgan Stanley, Jefferies, and JP Morgan. Barclay Pearce said sell.

Bloomberg data had a consensus price target of $3.69 per share at the time. The Boral share price closed the session on 19 April at $3.48.

The post The Boral share price has been smashed 10% so far in May. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Are these 2 ASX dividend shares buys in May 2022?
• 4 reasons it could be time to look at the Brickworks share price
• Top fund manager reveals 2 undervalued ASX shares to buy
• What’s happening to the Boral share price today?
• 2 ASX shares rated ‘buy’ by this top fund manager

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. 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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The Bank of Queensland Limited (ASX: BOQ) share price is edging higher on Friday, up 1.44% to $7.415.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is rebounding 1.74% higher to 7,061.9 points after yesterday’s sell-off.

Below, we take a look at the company’s financial metrics and how its shares have performed since it released its half-year results.

What did Bank of Queensland report for the first half of FY22?

Bank of Queensland delivered its half-year results for the 2022 financial year to the ASX on 14 April.

Across the board, the company recorded a robust scorecard with growth in several key areas. This included:

• Total income increased 1% to $831 million
• Cash earnings after tax lifted 14% to $268 million
• Statutory net profit after tax (NPAT) soared 38% to $212 million
• Common Equity Tier 1 (CET1) capital ratio fell 35 basis points to 9.68%
• Interim dividend up 29% to 22 cents per share

The higher cash profit was underpinned by asset growth, cost discipline, and an improved portfolio quality from the business.

Bank of Queensland CEO and managing director George Frazis commented on the day:

Today’s result demonstrates our disciplined execution of the ME integration and digital transformation program and represents our fifth consecutive half of improved underlying performance.

This has been achieved during a period of ongoing economic uncertainty from COVID, and at a time of notable change as we bed down the integration of ME and upgrade our digital capability for customers and our people.

How has the Bank of Queensland share price reacted?

In the weeks since the company’s results, Bank of Queensland shares steeply declined before hitting a 52-week low yesterday.

However, a slight rebound has ensued today as bargain hunters take advantage of the share price weakness.

Nonetheless, the company’s shares are down almost 13% from this time last month when the first-half performance was revealed. It’s worth noting that its shares sunk 6.33% on the day of the release.

When looking at year to date, Bank of Queensland shares have registered a drop of 8%.

This comes off the back of seven consecutive days of losses as investors pull out money on fears of a global economic slowdown.

For comparison, the benchmark ASX 200 index has shed 5% in 2022.

What do the brokers think?

A couple of brokers weighed in on the company’s share price last month.

Analysts at Goldman Sachs cut their rating on the Bank of Queensland share price by 5.1% to $9.34.

Furthermore, Credit Suisse also slashed its price target by 12% to $10 apiece.

Based on the current share price, this implies an upside of roughly 26%, and 35%, respectively.

The post How has the Bank of Queensland share price travelled since the company’s half-year results? appeared first on The Motley Fool Australia.

More reading

• Is there upside in the Bank of Queensland share price in May?
• Analysts name 2 ASX dividend shares to buy with growing yields
• What is the current dividend yield on Bank of Queensland shares?
• Why is the Bank of Queensland share price slipping again on Thursday?
• Why is the Bank of Queensland share price sliding today?

Motley Fool contributor Aaron Teboneras 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing, the benchmark index is up a sizeable 1.8% to 7,063.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 2% to $4.01. Earlier this week, the struggling infant formula company lost one of its only remaining bulls. According to a note out of Bell Potter, its analysts have downgraded the company’s shares to a hold rating with a $4.75 price target. This followed a review of industry data which pointed to difficult trading conditions ahead.

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price is down 3% to $1.24. This follows a pullback in the gold price overnight, which is weighing on gold miners today. This appears to have overshadowed the announcement of progress with its proposed acquisition of DGO Gold Ltd (ASX: DGO). DGO revealed that no competing proposals have been made and it is recommending that its shareholders accept the offer.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price is down 2.5% to $9.87. This appears to have been driven by a broker note out of Morgan Stanley. According to the note, the broker has downgraded the grain exporter’s shares to an equal-weight rating with a $10.70 price target. Its analysts believe now is a good time to take profit after some stellar gains.

Monash IVF Group Ltd (ASX: MVF)

The Monash IVF share price has continued its slide and is down a further 3% to $1.07. Investors have been selling this fertility treatment company’s shares following the release of a trading update yesterday. That update revealed that the current environment has negatively impacted stimulated cycle activity and profitability between January to April as patients defer treatment.

The post Why A2 Milk, Gold Road, GrainCorp, and Monash IVF shares are dropping appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Block and Xero rebound, gold miners fall
• Which is the better beaten-up buy, Bubs or A2 Milk shares?
• Why Block, IDP Education, Monash IVF, and Xero shares are dropping
• Why GrainCorp, Link, NAB, and Pendal shares are sinking today
• ASX 200 midday update: Magellan names its new CEO, Link shares crash

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

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

The stock market continued to see big ups and downs during the course of trading on Thursday. Market participants are having a lot of difficulty deciding whether the major macroeconomic factors affecting Wall Street are short-term in nature or will have longer-term implications, and as attitudes change, stock market moves have been violent. As of 12:30 p.m. ET, the Dow Jones Industrial Average Index (DJX: .DJI) was down 187 points to 31,647. The S&P 500 Index (SP: .INX) dropped 16 points to 3,919, and the Nasdaq Composite (NASDAQ: .IXIC) gave up 4 points to 11,361.

Until recently, giga-cap technology stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) had largely avoided the full brunt of the bear market in the NASDAQ, even as smaller companies lost 50% to 80% or more of their value.

However, over the past couple of months, some of the largest companies in the market, including Meta Platforms (NASDAQ: FB), Netflix (NASDAQ: NFLX), and Amazon.com (NASDAQ: AMZN), started to move sharply lower. Those big-name moves put a bigger dent in market capitalisation-weighted benchmarks.

But along the way, Apple and Microsoft largely avoided the brunt of the downturn. That has changed this week, and today, both companies are seeing bigger losses than the broader market as investors try to assess whether they too will give way to negative market sentiment.

Strong fundamentals

For the most part, Apple and Microsoft have been able to stand up to scrutiny because of their strong financial performance. For instance, Apple’s numbers for the fiscal second quarter ending March 26 included a 9% rise in overall revenue and a 6% gain in net income. The tech giant saw notable results from its iPhone, Mac, and wearables and accessories segments, which helped to offset some weakness in iPad sales. Apple also continued to grow its important services business, which some have seen as a potential weak link amid rising competition in areas like streaming content.

Similarly, Microsoft has done a good job of capitalising on the opportunities to serve customers getting more involved in cloud computing. Microsoft’s intelligent cloud segment posted the biggest rise in revenue among its businesses, driven by the popularity of the Azure cloud infrastructure platform.

Other areas of Microsoft’s business also owe much of their success to the cloud, particularly the subscription-as-a-service versions of the Office productivity software suite. An 18% sales boost helped push adjusted net income higher by 13% in the fiscal third quarter ending March 31, and the software behemoth kept returning capital to shareholders through buybacks as well as dividends.

Gaps in the armour?

However, both Apple and Microsoft have seen some declines in their share prices in the past week. Apple has fallen nearly 15% since May 4, while Microsoft has suffered a 12% drop in just over a week.

Apple and Microsoft are highly liquid stocks, making them less susceptible to some of the situations that can cause more dramatic movements in share prices of smaller companies. Index funds hold truly massive amounts of their stock. To the extent that long-term investors have stayed the course with their index holdings, that has helped provide ballast for Apple’s and Microsoft’s share prices.

However, impatient investors have started to register substantial outflows from their fund holdings. Forced selling from index funds can have an impact on share prices even for giga-cap tech stock giants, most notably because their weightings in various indexes tend to be extremely high.

There’s little to suggest anything wrong with Microsoft or Apple in terms of long-term business prospects. Nevertheless, short-term traders will watch the two stocks to see if they can avoid further losses here. If they prove vulnerable to a downturn, then some traders will see that as evidence that a more extensive decline for the overall market could be ahead.

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

The post Will Microsoft and Apple shares finally give way in the stock market’s downturn? appeared first on The Motley Fool Australia.

More reading

• Why Apple stock withered on Wednesday
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• Why Amazon shares are tumbling today
• Why Meta Platforms stock dipped on Monday
• Is global e-commerce really at risk?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Dan Caplinger has positions in Amazon, Apple, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Meta Platforms, Inc., Microsoft, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, Meta Platforms, Inc., and Netflix. 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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What was the highest ever AMP Ltd (ASX: AMP) share price? Good question. As most investors would probably guess, it was a very, very long time ago. But let’s dig into what has become a rather sad story of ASX life.

AMP is one of the oldest companies in Australia. It was founded way back in 1849 as the Australian Mutual Providence Society. Until 1998, it was a mutual society – owned by its members. But in 1998 AMP was ‘demutualised’ and listed on the ASX as a public company. A demutualisation process normally results in members receiving shares, which many AMP members and customers did.

But unfortunately, AMP’s life as an ASX share has proved to be the darkest chapter in its long history. The AMP of today is a vastly different beast from the venerated institution that was listed on the ASX in 1998.

The banking royal commission of 2018 was a landmark moment for the company. Alleged systemic rorts and fraudulent charges on customers arguably saw public trust in the company significantly diminish. Not to mention revelations that AMP had habitually misled the Australian Securities and Investment Commission (ASIC).

In the wake of the royal commission and these findings, AMP lost its chair, CEO and most of its board. Today, the company has sold off many of its ‘crown jewels’, such as its life insurance business and some of its AMP Capital (now called Colllimate) divisions.

At the time of writing, the company is trading at $1.15 a share, having bounced off a new 52-week low of just 86 cents a share that we saw earlier this year. But what of AMP’s highest ever share price?

When was the AMP share price’s all-time high?

Well, it’s been at least 20 years since we’ve seen it. It’s so long ago that is actually difficult to determine AMP’s exact highs from back in its early days. But let’s see what we can find.

According to an article from The Sydney Morning Herald in 2011, AMP shares “floated on the stock exchange for about $18.70 a share”. The company’s own corporate website indicates that the shares didn’t go much above that level. In fact, by 2003, AMP was getting pretty close to $3 a share, representing a loss of around 75% over the company’s first five years of life.

The company recovered to around $10 a share by 2007 but was again smashed with the onset of the global financial crisis in early 2008. It has been down, down for AMP shares ever since. The 86 cents share price we saw earlier this year was also an all-time low for the company.

No doubt shareholders will be hoping that it can only get better from here. But It’s certainly a long road back to this company’s glory days.

At the current AMP share price, this ASX 200 share has a market capitalisation of $3.73 billion.

The post What was the highest ever AMP share price? appeared first on The Motley Fool Australia.

More reading

• Why this top broker says the AMP share price is 27% over-valued
• Top brokers name 3 ASX shares to sell next week
• Could the worst now be over for the AMP share price?
• Top brokers name 3 ASX shares to sell today
• AMP share price rebounds as Woolworths ends $4b superannuation contract

Motley Fool contributor Sebastian Bowen 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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The Neometals Ltd (ASX: NMT) share price is soaring 11% higher today after the company announced the formal execution of a deal to build a lithium-ion battery recycling plant for Mercedes-Benz Group AG (FRA: MBG).

The news follows an initial announcement on 11 March that the two companies intended to cooperate, with Neometals acting as a technology partner in the design and construction of the proposed plant.

Deal sends Neometals share price skywards

ASX investors are reacting positively to the news by bidding up the Neometals share price today. The small-cap ASX share is currently trading at $1.37, up 11.4%, at the time of writing.

The conditional binding agreement is between Neometals’ incorporated joint venture, Primobius — owned 50:50 with SMS Group — and Mercedes-Benz’s wholly-owned recycling subsidiary, Licular. The deal forms part of the luxury carmaker’s global strategy for recycling car battery systems.

What are the details?

The companies are yet to finalise the location of the plant. However, it will likely be at Mercedes-Benz’s Kuppenheim operations in southern Germany, according to Neometals.

The company’s statement says the initial plant design has the capacity to recycle 2,500 tonnes per annum (tpa), or 10 tonnes per day, of lithium-ion battery material.

Primobius will first provide the design and engineering plans for the plant. It will then supply and install the necessary equipment. From there, Primobius will “enter into long-term research and development collaboration to recycle next-generation cell formats and chemistries” with Mercedes-Benz.

Primobius will provide a non-exclusive technology licence for the plant, as well as staff training and plant management support. During the operations phase, the two companies will evaluate an industrial-scale operation of Primobius’ recycling technology.

What did management say?

In its statement, Neometals said the deal showed the company’s “willingness to tailor commercial agreements to suit the recycling needs of EV car makers, LiB cell-makers, and environmental service providers”.

Commenting on the news fuelling the Neometals share price, managing director Chris Reed said:

We are delighted to formalise our long-term cooperation agreement with Mercedes-Benz. The R&D collaboration is as important to us as successfully supplying the equipment. We are excited to work together to develop a more holistic recycling solution covering logistics, handling, compliance and sustainability. We are grateful for the opportunity and accept the challenge to futureproof our processing technology.

What’s the next step?

The deal will become legally binding as soon as Neometals receives a purchase order from Licular for the supply and installation of the equipment.

Primobius is still working on the engineering and design packages to enable Licular to issue the order.

Neometals share price snapshot

The value of Neometals shares is up 187% over the past year but down 17% in the year to date.

The company has a market capitalisation of $674.5 million with 548.4 million shares on issue.

The post Neometals share price leaps 11% on Mercedes-Benz deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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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