Author: openjargon

It’s looking like this Thursday will be another positive session for ASX shares (touch wood). At the time of writing, the All Ordinaries Index (ASX: XAO) has gained a healthy 0.65% and is back over 8,070 points. But let’s talk about what’s going on with the Core Lithium Ltd (ASX: CXO) share price.

Core Lithium shares are having a stinker. This ASX lithium stock closed at 12.5 cents yesterday afternoon, but today is trading at 11.1 cents at the time of writing, down a horrid 12% so far this session.  

What’s worse, Core Lithium shares descended as low as a flat 11 cents each earlier this morning, which marks a new 52-week low for the lithium stock. This new 52-week low is just the latest blow for Core’s long-suffering shareholders though. Get ready for some sobering numbers.

Over just the past five trading days, the Core Lithium share price has given up more than 17% of its value. Year to date, we’ve seen 58.5% wiped off the value of this company. Investors are also nursing a loss of 89.6% over the past 12 months.

The Core Lithium share price is down a staggering 94% or so from the company’s last all-time highs of over $1.87 a share that we saw back in late 2022. Check all of that out for yourself below:

Just how low can the Core Lithium share price go?

Core Lithium’s more recent woes can be put down to a series of unfortunate events. Firstly, lithium prices have decisively come off the boil over the past 12 months or so. This has put pressure on the prices of almost all ASX lithium shares.

But Core Lithium has been dealing with some specific issues as well, which seem to have dented investor confidence.

For one, its flagship Finniss Project suspended lithium production earlier this year as a result of crashing lithium prices.

The company also posted a net loss of $167.6 million for the six months ending 31 December, which didn’t exactly help boost sentiment. A more recent quarterly update did nothing to assuage these concerns either.

Back in March, Core also revealed that its CEO Gareth Manderson would abruptly depart. Last month, Core did announce that Paul Brown would take Manderson’s place, but this game of musical chairs at the top of the company also seems to have contributed to the investor apathy we see today.

So where are Core shares destined to head from here? Well, it might be prudent to keep legendary investor Benjamin Graham’s wise words in mind here. Graham once said, “In the short run, the market is a voting machine but in the long run, it is a weighing machine”.

Well, investors have been voting the Core Lithium share price down significantly in recent months. But the company doesn’t have a lot of good news that might tip the balance of the market’s weighing machine.

As such, it’s hard to see what might happen next. But until there’s some good news out of the company, we might not see much improvement in Core Lithium shares from here.

ASX expert says sell

That’s certainly the view of one ASX broker right now. As we covered last month, ASX broker Goldman Sachs doesn’t see Core restarting its Finniss mine anytime soon. Goldman gave the Core Lithium share price a sell rating alongside a 12-month share price target of 11 cents per share.

Probably not the news that Core investors want to hear right now, but let’s see if this company can prove its detractors wrong.

At the current Core Lithium share price, this ASX lithium stock has a market capitalisation of $267.11 million.

The post Core Lithium share price dives another 12%. How low can it go? appeared first on The Motley Fool Australia.

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• 3 key reasons to sell Core Lithium shares
• Here is the latest lithium price forecast through to 2027
• These are the 10 most shorted ASX shares

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 positions in and has recommended Goldman Sachs Group. 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.

Life360 Inc (ASX: 360) has requested a trading halt today pending an announcement regarding its proposed US initial public offering (IPO) of new shares of common stock on Nasdaq.

Investors have been buying up the Life360 shares in recent months, doubling the share price since the beginning of the year. At the time of writing, the Life360 share price is trading at $14.69.

Rapid growth

Life360 is a leading technology platform connecting millions of people worldwide. The Life360 mobile application offers features including communication, driving safety, digital safety, and location sharing.

The company has experienced rapid growth in recent years, particularly in the United States. Life360’s subscription revenue rose from US$86.6 million in 2021 to US$220.8 million in 2023. Management believes its core subscription revenue could continue growing by at least 20% in 2024.

While the company is still incurring a net loss, it has reduced from $33.6 million in 2021 to $28.2 million in 2023.

Listing on Nasdaq

Earlier this week, Life360 announced the launch of its US IPO, offering 5,750,000 shares of common stock. The company plans to use the proceeds from the offering to enhance its financial flexibility, create a public market for its stock in the US, and for general corporate purposes.

Once completed, the company expects to trade on Wall Street under the ticker code Life360 Inc (NASDAQ: LIF). The company’s Chess Depositary Interests (CDIs), representing shares of common stock, will remain listed on the Australian Securities Exchange (ASX).

What does this mean for ASX investors?

As my colleague James highlighted, analysts at Bell Potter believe this could be positive news for Life360 shares and its current shareholders. The broker previously noted:

Key potential catalysts for the stock include another strong quarter of paying circle growth in Q2 (April was another good month), a potential upgrade to the 2024 guidance sometime in H2, and a U.S. listing at some stage in the next 12 months.

We have increased the multiple we apply in the EV/Revenue valuation from 5.5x to 6.5x given the proposed US listing and potential re-rating of the stock given the much higher multiples of comps like Reddit (NYSE: RDDT).

Bell Potter has a buy rating and a $17.75 price target on Life360 shares.

The post Life 360 shares halted ahead of Nasdaq IPO appeared first on The Motley Fool Australia.

More reading

• 3 high-flying ASX shares that could keep on climbing
• Here are the top 10 ASX 200 shares today
• Why Clarity Pharmaceuticals, Life360, Ramsay Health Care, and Spartan Resources shares are rising today
• Life360 shares jump 7% on Nasdaq IPO launch
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Kate Lee has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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.

With the S&P/ASX 300 Index (ASX: XKO) soaring 0.7% today, we take a look at three ASX 300 shares that just got rerated by top brokers.

Two for the better.

One for the worse.

Here’s what’s happening.

(Broker data courtesy of The Australian.)

Two ASX 300 shares earning broker upgrades

The first ASX 300 share earning a broker upgrade is global wine company Treasury Wine Estates Ltd (ASX: TWE).

After gaining 5.3% yesterday, Treasury Wine shares are up 1.0% today, trading for $12.12 apiece. That sees the Treasury Wine share price up 13.2% so far in 2024.

Atop those share price gains, the ASX 300 share trades on a partly franked trailing dividend yield of 2.8%.

Investors have been bidding up the stock following Monday night’s bullish update on the growth opportunities in its North American markets. Management also reaffirmed the company’s full-year guidance for FY 2024.

Barrenjoey has raised Treasury Wine to a ‘neutral’ rating. But following five consecutive trading days of gains, the broker’s $11.50 share price target is more than 5% below current levels.

Which brings us to the second ASX 300 share getting a broker upgrade, jewellery retailer Lovisa Holdings Ltd (ASX: LOV).

Earlier this week, Lovisa was downgraded by numerous brokers, including Barrenjoey, Citi, Morgan Stanley and Canaccord.

That came after the company announced on Monday that CEO Victor Herrero will be stepping down on 31 May next year. With Herrero widely credited for helping drive the company’s strong outlet growth in recent years, investors sent the stock crashing 10.4% on Monday and another 2.2% on Tuesday.

But following Wednesday’s rebound and another 2.0% intraday gain today, the Lovisa share price has recouped much of those losses to be trading for $31.15. That sees the ASX 300 share up 55.9% in 12 months. Lovisa shares also trade on a partly franked trailing dividend yield of 2.6%.

And Macquarie believes the company can continue to grow. The broker raised Lovisa to an ‘outperform’ rating with a $33.70 price target. That represent a potential upside of more than 8% from current levels.

Rounding off the list…

One stock getting downgraded

The ASX 300 share getting hit with a broker downgrade is online-only furniture and homeware retailer Temple & Webster Group Ltd (ASX: TPW).

The Temple & Webster share price is up 0.6% today at $9.53. That sees the stock up a whopping 102% over 12 months.

While Citi still sees more growth potential from here, the broker reduced its target price by 10% to $11.00 a share.

That still represents a potential upside of more than 15% from today’s levels.

The post 3 ASX 300 shares just rerated by leading brokers appeared first on The Motley Fool Australia.

More reading

• Why Genesis Minerals, Lovisa, Northern Star, and SRG Global shares are rising today
• Why this top fund manager has been snapping up Lovisa shares
• 2 excellent ASX shares to buy and hold for a decade
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Lovisa, Macquarie Group, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Lovisa, Temple & Webster Group, and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and is pushing higher on Thursday. In afternoon trade, the benchmark index is up a sizeable 0.75% to 7,826.9 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are pushing higher:

Genesis Minerals Ltd (ASX: GMD)

The Genesis Minerals share price is up 6% to $1.94. As well as getting a boost from a rising gold price, this gold explorer and development company was the subject of a positive broker note this morning. According to a note out of Ord Minnett, it has upgraded the company’s shares to an accumulate rating (from hold) following a review of shares with exposure to gold and/or copper.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is up over 2% to $31.17. This morning, analysts at Macquarie upgraded the fashion jewellery retailer’s shares to an outperform rating with a $33.70 price target. The broker is very positive on the company’s global expansion and believes that strong earnings growth is coming over the next five years. It also feels that the change of CEO will not derail Lovisa’s sales and store growth. As a result, it thinks that the sharp pullback in the Lovisa share price this week has created a buying opportunity for investors.

Northern Star Resources Ltd (ASX: NST)

The Northern Star Resources share price is up 2.5% to $14.71. Investors have been buying Northern Star and other gold mining shares today. This has been driven by a strong rise in the gold price overnight after US bond yields softened amid hopes that interest rate cuts are coming. This has seen the S&P/ASX All Ordinaries Gold index rise 2.5% on Thursday. Not even a broker downgrade by Ord Minnett has been able to stop Northern Star rising today. It has downgraded its shares to a hold rating with a $15.60 price target.

SRG Global Ltd (ASX: SRG)

The SRG Global share price is up 2.5% to 89 cents. This has been driven by news that the diversified industrial services company has been awarded multiple contracts with existing clients in the renewable energy, resources and energy sectors across Australia. Management notes that the value of the new works secured is $125 million. SRG Global’s managing director, David Macgeorge, said: “We are pleased to secure these diverse range of contracts across Australia through established relationships with Tier 1 clients across Australia.”

The post Why Genesis Minerals, Lovisa, Northern Star, and SRG Global shares are rising today appeared first on The Motley Fool Australia.

More reading

• 3 ASX 300 shares just rerated by leading brokers
• Why this top fund manager has been snapping up Lovisa shares
• 5 things to watch on the ASX 200 on Thursday
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• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa and Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having another positive session on Thursday. At the time of writing, the benchmark index is up 0.8% to 7,828.6 points.

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

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 8% to 11 cents. This is despite there being no news out of the lithium miner. However, there are a number of lithium stocks that are in the red today. In addition, last week I named three reasons why Core Lithium shares could be a sell. They have now fallen over 18% since that article was published. The good news, though, is that its shares are now trading in line with what some bearish analysts believe to be fair value.

IDP Education Ltd (ASX: IEL)

The IDP Education share price is down 4.5% to $15.00. This morning, this student placement and language testing company released an update on market conditions following recent changes to regulatory settings. Management notes that a more restrictive policy environment in its key destination countries is reducing the size of the international student market. This has negatively impacted testing and student placement volumes during the second half. As a result, management is guiding to flat earnings in FY 2024. IDP is one of the most shorted shares on the ASX.

Seek Ltd (ASX: SEK)

The Seek share price is down 3% to $23.08. This may have been driven by profit taking from some investors following a strong gain on Wednesday. That was driven by news that the job listings giant is selling its Latin American assets. In addition, this morning analysts at Ord Minnett reaffirmed their lighten rating with a $20.00 price target. This implies potential downside of over 13% for investors from current levels over the next 12 months.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity Entertainment share price is down 15% to $1.36. This follows the release of a trading and dividend update. The struggling casino and resorts operator revealed that it now expects FY 2024 net profit after tax to between NZ$120 million and NZ$125 million. This is down from its previous guidance. It is also guiding to further earnings declines in FY 2025 due to challenging trading conditions. In light of this and likely AUSTRAC penalties, the company is suspending its dividend until at least FY 2026.

The post Why Core Lithium, IDP Education, Seek, and Skycity shares are sinking today appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• This high-profile ASX 200 stock is soaring on a $130 million windfall
• Why Generation Development, Graincorp, Seek, and Treasury Wine shares are storming higher
• 3 ASX shares that can rise 25%+ in 12 months

Motley Fool contributor James Mickleboro has positions in Seek. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education. The Motley Fool Australia has recommended Seek. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) investors hoping for interest rate relief from the Reserve Bank of Australia are eyeing the overnight announcement from the Bank of Canada.

In a move that was widely expected, the Bank of Canada cut the nation’s official interest rate by 0.25%, bringing it down to 4.75% from the prior 5.00%.

That sees the Canadian rate 0.75% below the upper band of the official US Federal funds rate of 5.25% to 5.50%. This has some market watchers concerned it could pressure the Canadian dollar, with the Fed not expected to begin easing until late 2024 or early 2025.

While the Canadian dollar did slip 0.4% against the US greenback following the announcement, the foreign exchange moves have been muted so far.

Asked about the divergence with US rates, Bank of Canada governor Tiff Macklem said the central bank’s policies didn’t need to align with the US Fed. He added that if inflation continued to fall, more interest rate cuts could be expected.

“I don’t think we’re close to that limit,” Macklem said (quoted by Bloomberg). “There’s no sort of bright line, and you can see from history there have been periods of considerable divergence.”

Will this help the RBA pivot to interest rate cuts?

At 4.35%, Australia’s official cash rate has trailed that set by most developed central banks.

That could influence the RBA to keep rates on hold a little longer than most.

However, like Canada, the RBA will predominantly focus on the domestic situation. And, as we reported yesterday, Australia’s sluggish GDP growth over the March quarter has upped the odds ASX 200 investors will see some interest rate relief this year.

Carolyn Rogers, senior deputy governor at the Bank of Canada, noted that while central banks faced similar inflationary issues when they were raising rates, they face economic differences now that they’re approaching the easing cycle.

According to Rogers (quoted by Bloomberg):

Although we were quite coordinated on the way up, and that was really helpful because a big part of inflation was global, you’re going to see some divergence on the way down and that makes sense.

Doug Porter, chief economist at the Bank of Montreal, said that Canada’s interest rate cut could encourage other central banks, like the RBA, to follow suit rather than wait for the Fed to begin easing.

According to Porter:

There is safety in numbers. If central banks see their counterparts heading that way, that gives them some comfort that they’re not completely misreading the situation. I think it does make it easier for other central banks to start cutting too.

After closing up 0.4% yesterday, the ASX 200 is up 0.8% in early afternoon trade today.

The post The Bank of Canada just cut interest rates. Will the RBA follow suit? appeared first on The Motley Fool Australia.

More reading

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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.

The European Lithium Ltd (ASX: EUR) share price has been a strong performer on Thursday.

At the time of writing, the ASX lithium stock is up 12% to 5.6 cents.

This is despite many of its peers, such as Core Lithium Ltd (ASX: CXO), tumbling deep into the red today.

Why is this ASX lithium stock surging?

Investors have been buying the company’s shares this morning after it released an announcement relating to the Wolfsberg Lithium Project in Austria.

According to the release, Bayerische Motoren Werkte Aktiengesellschaft, which is better known as BMW, has transferred funds of US$15 million to ECM Lithium, a wholly owned subsidiary of Critical Metals Corp (NASDAQ: CRML).

European Lithium holds approximately 67.8 million shares in Critical Metals. This represents approximately 83% of its outstanding stock and values its investment at approximately US$723.3 million.

BMW’s funds transfer is in relation to the offtake of battery grade lithium hydroxide (LiOH) from the Wolfsberg Lithium Project. This is to be offset against LiOH delivered to the auto giant in the future.

Commenting on the news, the ASX lithium stock’s chairman, Tony Sage, said:

This is a huge milestone for the Wolfsberg project which now paves the way for the next financing steps

What is Critical Metals?

Critical Metals is a leading mining company focused on mining critical metals and minerals.

It was formed earlier this year when European Lithium completed a business combination between the ASX lithium stock and Sizzle Acquisition Corp. Commenting at the time on the business combination, Sage said:

The Company is thrilled to announce completion of the transaction that brings Critical Metals to life and supports the future commercialisation of the Wolfsberg Project on Nasdaq.

With access to US capital markets and funds raised in the process of the listing, we believe that Critical Metals is well positioned to become a key supplier for the lithium-ion battery supply chain in Europe. Critical Metals’ future success as a Nasdaq listed company is also expected to create a significant increase in shareholder value for EUR shareholders.

The ASX lithium stock notes that the Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure to become the next major producer of key lithium products to support the growing demand for electric vehicles (EVs) and Europe’s burgeoning lithium-ion battery supply chain.

The post ASX lithium stock rockets 12% on BMW deal appeared first on The Motley Fool Australia.

More reading

• The Bank of Canada just cut interest rates. Will the RBA follow suit?
• Telix Pharmaceuticals share price jumps to record high on Nasdaq IPO launch
• Where are the women investors?
• 2 ASX All Ords shares crashing 13% and 21% today on big news
• Why I’d back up the truck on Soul Patts shares right now

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.