It hasn’t been a great start to the week for Wildcat Resources Ltd (ASX: WC8) shareholders.

The lithium stock has dropped 10.29% to 30.5 cents in morning trade after returning from a trading halt.

It hit as low as 29.25 cents during market open.

That leaves Wildcat shares down almost 13% over the past week and around 22% over the past month.

By comparison, the All Ords Index (ASX: XAO) is down just 0.34% on Monday.

So, let’s take a closer look at what exactly did Wildcat announce?

Why are the shares falling?

According to the release, Wildcat has received firm commitments to raise $60 million through an institutional placement.

The placement was supported by new and existing institutional investors, including specialist global resources funds.

Around 196.7 million new shares will be issued at 30.5 cents each.

That price represents a 10.3% discount to Wildcat’s last traded price of 34 cents and an 11.2% discount to its 5-day VWAP.

Wildcat currently has around 1.41 billion shares on issue, so the placement will increase the share count by roughly 14%.

What will the money be used for?

The cash is being directed towards Wildcat’s Tabba Tabba lithium project in Western Australia.

The company plans to use the money on early works, including process plant engineering, roads, village development and potentially ordering long-lead equipment.

Funds will also go towards regional exploration, site establishment and other work needed to get the project ready for construction.

Wildcat said it’s targeting completion of its Definitive Feasibility Study (DFS) during calendar 2026.

Wildcat is also in advanced discussions with commercial banks, specialist financiers, government funding agencies, strategic partners and potential Tier-1 customers.

How big is Tabba Tabba?

Tabba Tabba already has a maiden mineral resource of 74.1 million tonnes grading 1% lithium oxide.

That includes a probable ore reserve of 46.3 million tonnes at 0.99% lithium oxide.

The project is around 80 kilometres by road from Port Hedland and sits near two major Pilbara lithium operations, Pilgangoora and Wodgina.

Wildcat is continuing exploration across the area while it works through the development studies.

What happens next?

Most placement shares will be issued under Wildcat’s existing placement capacity, with settlement of the first tranche expected on Friday 25 September.

A smaller second tranche of around 13.1 million shares will require shareholder approval at a general meeting expected in November.

The first tranche shares are then expected to be allotted and begin trading on Monday 28 September.

The post Why is this ASX lithium stock crashing 10% on Monday? appeared first on The Motley Fool Australia.

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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.

This ASX car stock is hovering near a 52-week low, and investors have plenty to digest. At $19.52 at the time of writing, Eagers Automotive Ltd (ASX: APE) shares are down around 14% over the past month and 26% over the past 12 months.

That’s a striking reaction for a company that just delivered record first-half revenue and underlying profit. So what exactly is spooking the market?

Eagers is getting bigger — fast

Eagers is Australia’s largest automotive retailer, sitting across a sprawling portfolio of brands including Toyota, Kia, Mercedes-Benz, Audi, Geely, and BYD. The $5 billion ASX car stock now represents more than 33 car brands and 11 truck and bus brands. And management shows zero signs of slowing down.

In April, Eagers completed its 65% investment in Canadian dealership giant CanadaOne Auto, effectively creating a much larger international automotive retail platform. On an FY25 pro-forma basis, the combined group would have generated $18.7 billion of revenue and $968.6 million of EBITDA. That’s a serious step-change in scale.

Then came Australia. Eagers agreed to invest 49% in Grand Motors Group, covering dealerships representing Toyota, BMW, MINI, Kia, Mazda, and Subaru, while also snapping up two Audi dealerships from Zagame. Together, those deals add roughly $630 million of annual revenue.

Now Eagers is going upmarket

The latest move might be the most eye-catching yet. Eagers has entered a non-binding agreement to acquire a 50% stake in Zagame Automotive Group, the Melbourne and Adelaide luxury-car retailer, via a joint venture with founder Bobby Zagame. The business pulled in about $600 million of revenue in the year to June 2026.

Zagame’s portfolio isn’t your average showroom. Think Ferrari, Lamborghini, and Rolls-Royce. That deal hands the ASX car stock considerably more exposure to the luxury and super-luxury end of the market, a segment it’s had relatively little presence in until now.

But bigger doesn’t automatically mean better

On paper, the business is firing. First-half FY26 revenue surged 24% to about $8.1 billion, while underlying profit before tax hit $250.4 million. Those are genuinely strong numbers.

The concern is what comes next. CanadaOne, Grand Motors, and Zagame all represent substantial additional capital commitments, plus real integration complexity across different countries, brands, and price points.

At the same time, investors are watching margins nervously as the automotive industry navigates a major transition. New brands are flooding the market, consumer preferences are shifitng, and pricing pressure shows no sign of easing.

Bull case vs bear case

The bull case for the ASX car stock is straightforward: Eagers is assembling a diversified global automotive retail powerhouse, spanning mainstream, luxury, and international markets, that could compound earnings for years.

The bear case is just as easy to make: Management is expanding aggressively at precisely the moment the economics of traditional car retail are becoming harder to predict, and each new acquisition adds another layer of execution risk.

The post This ASX car stock is tanking. Has it overreached? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Tabcorp Holdings Ltd (ASX: TAH) and National Australia Bank Ltd (ASX: NAB) shares are both outpacing the S&P/ASX 200 Index (ASX: XJO) in morning trade on Monday.

At time of writing the ASX 200 is down 0.2%.

Trading for 92 cents apiece, Tabcorp shares are up 1.1% at this same time, while NAB shares are just in the green, up 0.1% at $38.51 each.

Taking a step back, however, both stocks have underperformed the 0.1% losses posted by benchmark index in 2026.

Year to date, NAB shares have slipped 9.2% while the Tabcorp share price is down 8.1% this calendar year.

Although that’s not including the dividends both companies pay. Tabcorp trades on a 3.2% unfranked trailing dividend yield, while NAB trades on a fully franked 4.4% trailing dividend yield.

But, dividends or not, Catapult Wealth’s Dylan Evans expects that growing headwinds leading into 2027 put both of these popular ASX 200 stocks on the sell list (courtesy of The Bull).

Here’s why.

Time to exit NAB shares?

Evans noted NAB’s relatively strong Q3 performance.

“Revenue grew by 2 per cent in the third quarter of fiscal year 2026 when compared to the first half quarterly average. Cash earnings also increased by 2 per cent,” he said.

But the growth may not be sustainable in the coming quarters.

“In our view, the broader banking sector is facing several headwinds,” Evans added.

Summarising his sell recommendation on NAB shares, he said:

The Federal government announced changes to capital gains tax and negative gearing in the May Budget. Investment loan applications have slowed amid a cost of living crisis. While the NAB business is well managed and the balance sheet is solid, it’s difficult to identify any significant growth on the horizon.

Investors may want to consider taking some profits and explore superior earnings growth opportunities elsewhere.

Should you sell Tabcorp shares today?

Atop his bearish assessment for the outlook of NAB shares, Evans also issued a sell recommendation on Tabcorp shares.

“Tabcorp is the largest multi-channel wagering brand in Australia,” he said.

Looking at Tabcorp’s FY 2026 results, Evans said:

The company generated group revenue of $2.636 billion in full year 2026, up 0.8 per cent on the prior corresponding period. Group EBITDA [earnings before interest, taxes, depreciation and amortisation] of $431.7 million was up 10.3 per cent.

But, as with NAB, Tabcorp could be facing some mounting headwinds.

Commenting on his sell recommendation, Evans said:

In our view, a major challenge for Tabcorp is the highly competitive gambling industry and the underlying trend towards digital wagering amid the risk of potentially tighter regulations. The company expects domestic wagering turnover growth in fiscal year 2027 to be broadly consistent with fiscal year 2026, excluding the FIFA World Cup.

The shares have fallen from $1.17 on May 1 to trade at 90 cents on September 17. Other stocks appeal more at this stage of the cycle.

The post Sell alert! Why this expert is calling time on Tabcorp and NAB shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.