Author: therawinformant

The Metal Hawk Limited (ASX: MHK) share price has shined on its ASX debut, and is currently trading at 27 cents –  a 35% premium to its initial public offering (IPO) price. The mining company has, earlier today, floated its shares on the ASX and raised $5.5 million by issuing them at 20 cents each.

More about the Metal Hawk IPO

Metal Hawk is a 12-month old company that owns three gold projects in Western Australia’s prolific eastern goldfields region – namely Kanowna East, Emu Lake and Clinker Hill. Prior to the IPO, the company had secured the non-lithium rights for the Emu Lake exploration from Lithium Australia (ASX: LIT). 

Metal Hawk’s portfolio also comprises the Viking gold project – in which it recently entered a joint venture with Chalice Gold Mines Limited (ASX: CHN), allowing Chalice to earn up to 70% equity by sole funding the project over 4.5 years. This enabled the project to continue without depleting Metal Hawk’s funds.

Metal Hawk has chosen to float this year to take advantage of strong price performances in gold and nickel sulphides. Although the gold price has primarily been driven by the shift to safe assets caused by the pandemic, the nickel market is mainly fueled by expectations of increasing demand for electric vehicle batteries in the future.

More background on Metal Hawk

Metal Hawk is a Western Australian mineral exploration company focused on early stage discovery of gold and nickel sulphides. Metal Hawk holds interests in a number of quality projects in the Eastern Goldfields and Albany Fraser regions.

The company recently signed an earn-in and joint venture agreement with Western Areas Ltd (ASX: WSA), whereby Western Areas has the right to earn a 75% interest in three of Metal Hawk’s projects; Kanowna East, Emu Lake and Fraser South by spending $7 million over 5 years.

As mentioned, in September 2019, Metal Hawk also signed an option and earn-in agreement with Chalice Gold Mines under which Chalice can earn up to 70% interest in the Viking Gold project by spending $2.75 million on exploration over 4.5 years.

More reading

• 2 ASX shares making all-time highs today
• Why Aristocrat Leisure, Chalice Gold, Westpac, & Whitehaven Coal shares are charging higher
• Why the Chalice Gold Mines (ASX:CHN) share price is rocketing 16% higher
• Here are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Metal Hawk (ASX:MHK) share price surges 35% on IPO debut appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/393ltTI

The Elanor Retail Property Fund (ASX: ERF) share price is shooting higher today, up 12.24% to $1.10 in late afternoon trading. This follows the company’s ASX announcement this morning reporting a major asset sale and the launch of an on-market share buyback scheme.

Today’s gains see the Elanor share price up more than 23% so far in November. Having taken a big wallop during the COVID-19-panic selling in February and March, shares remain down 10.7% year-to-date.

By comparison, the broader All Ordinaries Index (ASX: XAO) is down 1.3% so far in 2020.

What does Elanor Retail Property Fund do?

Elanor Retail Property Fund is a real estate investment trust (REIT). The company invests in Australian retail shopping centres that generate strong income. Elanor currently owns non-discretionary focused retail assets with a combined valuation of $317 million.

Shares of Elanor Retail Property first began trading on the ASX in 2016.

What’s driving the Elanor share price higher?

Elanor advised it had exchanged contracts for the sale of its Auburn Central Shopping Centre to Shopping Centres Australasia Property Group (ASX: SCP).

The $129.5 million price tag represents a 4.9% premium to the book value of $123.5 million.

Located in New South Wales, Auburn Central is anchored by Woolworths Group Ltd (ASX: WOW), ALDI and Tong Li supermarkets.

Settlement is expected in mid-December 2020.

Elanor reports it will use the money to repay $94.1 million in debt, reinstate distributions suspended due to COVID-19’s impact, and start an on-market buyback of up to 10% of its issued shares.

Management commentary

Commenting on the sale, fund manager Michael Baliva said:

Since ERF acquired the property in 2016, we have been focused on executing our strategy to unlock value through actively repositioning the asset. This has resulted in Auburn Central being converted from a large sub-regional asset to a triple-supermarket neighbourhood centre.

The sale of Auburn Central generates a 24.5% IRR to ERF investors and highlights our capability in unlocking the value of our assets through actively repositioning the retail mix to nondiscretionary focused offerings.

Elanor Investors Group CEO Glenn Willis added:

ERF is a “value-add retail real estate fund” with a focus on retail assets that provide opportunities for strong investment returns. We are pleased with the sale of Auburn Central following the successful execution of the fund’s repositioning strategy at the asset. The fund is well-positioned to grow through the acquisition of further high-quality, value-add retail properties.

More reading

• These beaten-up shares are about to pick up: Moody’s

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Shopping Centres Australasia Property Group and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Elanor Retail Property Fund (ASX:ERF) share price is up 12% today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36JS5zg

The Aristocrat Leisure Limited (ASX: ALL) share price could be going higher from here according to one leading broker.

In afternoon trade the gaming technology company’s shares are down slightly to $34.51, but analysts at Goldman Sachs believe there’s decent upside to come for its shares.

What has been happening?

On Wednesday Aristocrat released its full year results for FY 2020 and, as expected, revealed a sizeable drop in profits because of the COVID-19 pandemic.

In case you missed it, for the 12 months ended 30 September, Aristocrat reported a 5.9% decline in operating revenue to $4,139.1 million and a 31.8% reduction in earnings before interest, tax, depreciation and amortisation (EBITDA) to $1,089.4 million.

This was driven by a 32% decrease in Aristocrat Gaming (Land-based) revenue due to the impact of COVID-19 customer venue closures and social distancing restrictions. This revenue decline was almost offset by an impressive performance by Aristocrat Digital segment.

The latter segment delivered double-digit growth in bookings, revenue, and profit during FY 2020. Management noted that its RAID: Shadow Legends game continued its impressive growth trajectory, generating US$368 million in bookings.

Was this a good result?

According to a note out of Goldman Sachs, Aristocrat Leisure beat its forecasts for both revenue and earnings in FY 2020. It was also impressed with its cash conversion and notes that its net leverage remained steady.

In light of this, the broker has held firm with its buy rating and lifted its price target on the company’s shares to $37.00.

This price target implies potential upside of approximately 8.5% over the next 12 months including dividends.

Goldman commented: “Despite the challenging backdrop, ALL delivered a high quality result in our view given i) demonstrated scalability of digital, with margin expansion, and significant ABPDAU growth despite lower DAU (focus on quality), ii) better-than-expected US land based performance, both in terms of outright sales and growing its install base while maintaining marketing leading avg fee per day, and iii) strong cashflow generation in the half while balance sheet strength clearly remains a highlight.”

“Looking ahead, management remain focused on positioning ALL for further growth, targeting to maintain/enhance land based share, bookings growth across digital, and continued D&D investment (above historical levels) to drive sustained long term growth. Therefore we continue to view ALL as well-placed to leverage off its strong balance sheet and above peer D&D spend to capture further share gains or M&A opportunities,” it concluded.

More reading

• ASX 200 rises again on Wednesday
• Why Aristocrat Leisure, Chalice Gold, Westpac, & Whitehaven Coal shares are charging higher
• ASX 200 up 0.35%: Aristocrat FY 2020 results, big four banks higher, a2 Milk update
• Aristocrat Leisure (ASX:ALL) share price in focus after FY 2020 results
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Aristocrat Leisure (ASX:ALL) share price can go higher from here appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3kDE4rS

On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below.

Here’s why these brokers are bearish on them:

ASX Ltd (ASX: ASX)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on this stock exchange operator’s shares to $67.90. The broker has reduced its earnings estimates on the belief that the company will have to increase its operating expenses to ensure the stability of its trading systems. Particularly given the company’s plan to replace the CHESS distributed ledger in the coming years. In addition to this, lower interest rates are expected to weigh on its margins slightly. The ASX share price is fetching $81.75 this afternoon.

St Barbara Ltd (ASX: SBM)

A note out of Macquarie reveals that its analysts have retained their underperform rating and cut the price target on this gold miner’s shares to $2.30. According to the note, the broker has reduced its earnings estimates after downgrading its gold price forecasts for the coming years. It believes improvements in 10-year U.S. bond yields will put pressure on the precious metal. The St Barbara share price is trading at $2.58 on Thursday.

United Malt Group Ltd (ASX: UMG)

Analysts at Credit Suisse have downgraded this commercial maltster’s shares to an underperform rating but lifted the price target on them to $4.23. This follows the release of its FY 2020 results this week. Although that result was ahead of its expectations, it notes that this was partly due to government assistance and temporary cost reductions. Something which may not be repeated in FY 2021. Credit Suisse also appears to have concerns over a contraction in the craft brewing market. The United Malt share price is changing hands for $4.59 this afternoon.

More reading

• Why the United Malt (ASX:UMG) share price has lifted 4% higher today
• ASIC rips into ASX again as more systems go down
• What caused the ASX outage on Monday trading?
• ASIC to investigate if ASX is fit to hold market licence
• ASX trading halt to remain in place for the rest of the day

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

from Motley Fool Australia https://ift.tt/35GwOXZ

One of the biggest shifts in sentiment we have seen so far in 2020 on the S&P/ASX 200 Index (ASX: XJO) is arguably in the banking sector. ASX bank shares have had a shocker of a year, if the numbers are anything to go by.

The ASX’s largest bank, Commonwealth Bank of Australia (ASX: CBA) actually hasn’t faired too badly. The CBA share price was trading at $79.88 at the start of the year, just a whisker above the current share price (at the time of writing) of $77.91. However, the high of $91.05 that CBA saw in February (just before the coronavirus-induced market crash) still looks out of reach (for now anyway).

But it’s a different story for the other big four banks. The National Australia Bank Ltd (ASX: NAB) share price is sitting at $22.47 today after rising more than 15% over the past month. But that’s still 8.5% below where NAB shares were on 2 January, and more than 18% off their February highs. It’s a similar story with Australia and New Zeland Banking Group Ltd (ASX: ANZ) shares.

But Westpac Banking Corp (ASX: WBC) is arguably the ASX bank that has faired the worst. The Westpac share price is today asking $19.79 after climbing 14% since 4 November. But Westpac is still more than 18% below where it was at the start of 2020, and more than 23% off its February highs.

ASX bank dividends to make a return?

One possible explanation for ASX bank shares being sold off could be due to the dividends they are paying in 2020 and beyond (or lack thereof). ASX banking shares have always had a reputation as income giants on the ASX 200, typically offering grossed-up yields between 5% and 8% in any given year.

But 2020 has seen dividends from this sector dry up considerably. Take Westpac. It didn’t even pay an interim dividend in 2020 for the first time in at least three decades. And its final dividend for 2020, to be paid on 18 December, will come in at 31 cents per share, down from 80 cents per share in 2019.

But that could shift in 2021.

Part of the reason banking dividends have been so scarce in 2020 is because of APRA (the Australian Prudential Regulatory Authority). Back in May, APRA actually told (‘guided’ was the official term) the ASX banks to keep their dividends low for the sake of stability in the financial sector. As part of this ‘guidance’, APRA ‘suggested’ banks keep their payout ratios below 50% of earnings.

Dividend mana from APRA

But according to reporting in the Australian Financial Review (AFR) yesterday, APRA might be about to loosen this guidance. The AFR reports that APRA chair, Wayne Byres, speaking at the AFR’s Banking and Wealth Summit, told participants APRA will “soon revise the 50 per cent earnings cap on dividend payouts to shareholders, indicating this may be relaxed”.

The AFR quotes Mr. Byres as stating the following:

On the whole, I think the outlook has improved, bank capital has certainly increased, the economic situation looks more positive…We don’t want to be complacent, but I think it is time we look at the issue [of the cap] again.

If that does come to pass, we could well see dividends from the big four banks tick up again in 2021 and beyond. If you were wondering why ASX banking shares have been so dramatically on the rise in November so far, you might have just found your answer.

More reading

• China is a much bigger threat to the ASX bull run than COVID
• Global fund managers are bullish on these 3 things
• Why the Aventus (ASX:AVN) share price is rising today
• ASX 200 down 0.3%: Altium FY 2021 guidance, Crown drops, insurance shares sink
• Can Magellan (ASX:MFG) prosper in a market dominated by Macquarie (ASX:MQG)?

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why ASX bank share dividends might be surging soon appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3pJgTQL

The Sequoia Financial Group Ltd (ASX: SEQ) share price has jumped almost 5% in today’s trading following the financial services company’s annual general meeting (AGM). Sequoia shares are currently trading at 44 cents, up 4.76%.

What did Sequoia report today?

Sequoia  is a financial services company offering financial planning, stock broking, and accounting to both retail and wholesale clients. The company reported that it more than tripled its earnings in FY20.

It says that despite enormous changes in the industry post-Hayne Report (which resulted in large institutions abandoning the financial planning industry altogether), it remains bullish and has plans to add 600 advisers to its roster. 

Sequoia also reported that it expects to see revenue increase to above $100 million in FY21, operating profit to increase by 25% to $6 million, and that it is working towards increasing the dividend payout ratio from 25% to 65% over the next 4 years. The company says it is currently tracking ahead of this budget.

In today’s AGM announcement, Sequoia chief executive Garry Crole indicated he believes there will continue to be new entrants into the financial planning sector, however he thinks that a full recovery will not occur before 2024.

Major financial highlights

Sequoia announced the following metrics for FY20:

• revenue in FY20 of $84.5 million, an increase of almost 2% over 2019 results.
• earnings before interest, tax, depreciation, and amortisation (EBITDA) of $4.8 million, a significant increase of 336% 
• net profit after tax (NPAT) of $1.9 million, compared to a loss of $1 million in 2019
• a dividend of 40 cents, or 25% of NPAT. The company did not pay a dividend in 2019.

How has the Sequoia share price performed in 2020?

The Sequoia share price has had a tremendous year in 2020, almost doubling in value on the back of strong results. Its current share price of 44 cents gives it a market cap of $54 million.

More reading

• Why ASX bank share dividends might be surging soon
• Here’s why GUD (ASX:GUD) is acquiring this AMA (ASX:AMA) business for $70m
• China is a much bigger threat to the ASX bull run than COVID
• Another major shakeup for Unibail Rodamco Westfield (ASX:URW) shareholders
• Why the Regional Express (ASX:REX) share price is rising today

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why the Sequoia (ASX:SEQ) share price surged 5% today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3lKgYkH

The AMA Group Ltd (ASX: AMA) share price is pushing higher on Thursday after announcing the divestment of its ACAD business to GUD Holdings Limited (ASX: GUD).

At the time of writing, the AMA share price is up 2% to 84 cents, whereas the GUD share price is in a trading halt.

What was announced?

This morning the two companies revealed that they have entered into a $70 million agreement for AMA’s ACAD business, excluding the ACM Auto Parts and Fluiddrive businesses. This figure remains subject to customary purchase price adjustments and capex adjustments.

AMA revealed that its board has been reviewing its strategic objectives to determine its optimal focus.

And while it notes that the ACAD business is a strong well performing business, it was determined that a focus on the Panel Repairs sector would provide greater opportunities for investment and growth for shareholders.

AMA’s management advised that the proceeds of the sale will be used to retire debt and set it up for continued growth in its core Panel Repairs operations.

For GUD, it notes that the acquisition is in line with its growth strategy. This is particularly the case in respect to securing new customers and categories through disciplined acquisitions.

After funding costs, the acquired businesses are expected to make a positive contribution to GUD’s earnings. Management is forecasting the acquisition to be mid-single-digit pro forma FY 2021 earnings per share accretive, pre-synergies.

GUD’s Managing Director and Chief Executive Officer, Graeme Whickman, commented: “The acquisition of these businesses is highly complementary to GUD’s automotive business and provides strategic diversification across products and customer channels, along with increased exposure to fast growing pick-up truck and SUV vehicle segments.”

“We are excited by the opportunity to bring GUD’s strong customer focus and sales ethos to what are well managed and established businesses with impressive product development and manufacturing capabilities,” he added.

Equity raising.

In order to fund the deal, GUD has launched an equity raising which aims to raise a total of $70 million. This comprises a fully underwritten $55 million institutional placement and a non-underwritten $15 million share purchase plan.

The institutional placement has an underwritten floor price of $10.75 per share, with the final price to be determined via a bookbuild. This floor price represents a 9.1% discount to its last close price.

More reading

• These could be the next ASX stocks to unlock value by selling assets
• 5 things to watch on the ASX 200 on Tuesday
• 5 ASX 200 shares that just received share price upgrades

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why GUD (ASX:GUD) is acquiring this AMA (ASX:AMA) business for $70m appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36UHWA2

ASX bulls have been hanging out for any piece of good news regarding a vaccine for COVID‐19, but it’s China should be keeping a wary eye out on.

Just as you think things couldn’t get any worse between Australia and our largest trading partner, the relationship just took a turn for the worse.

Prime Minister Scott Morrison defiantly stated that Australia won’t compromise on its sovereignty and security as China warned against making the Asian giant an enemy, reported Bloomberg.

China-Australia spat poses key risk for ASX investors

Australian business leaders who have been urging the Morrison government to tone down on the fiery rhetoric and offer gestures towards reconciliation will be disappointed.

The diplomatic chest beatings have not only gotten louder, but the relationship is likely to get worse before getting better.

The breakdown in Sino-Australia relations is putting the 43% S&P/ASX 200 Index (Index:^AXJO) bounce back from the COVID market meltdown in March at risk!

China is bigger than COVID

While its conceivable that the ASX can continue to climb even if it takes the world longer to get on top of the pandemic, it’s hard to imagine the bull run staying intact if China bans even more Aussie imports.

Chinese authorities have already moved to ban or restrict a range of Aussie goods entering that market. This includes copper, wine, barley, beef and timber, just to name a few.

The worry is that the black list will expand significantly and include iron ore. Not only is this Australia’s top export earner, China is really the only customer on the other side of the equation.

Brazil stepping up to the plate

This could come as Brazil’s exports of the commodity recovers from the COVID fallout. The rebound is already happening.

The latest data showed that Brazilian iron ore shipments increased by 64% week-on-week, or 7% year-on-year. This is the second highest level of the year of 8.1 million tonnes, according to UBS.

“Overall, Brazilian iron ore shipments have sequentially increased since the first quarter,” said the broker in a note issued on Monday.

“This explains the ongoing uptick in Chinese port inventories of Brazilian iron ore.”

ASX stocks at risk

Our mining giants like the BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price have a lot of lose in the China-Australia tiff.

They aren’t the only ones with an over reliance on the Chinese giant. The Treasury Wine Estates Ltd (ASX: TWE) share price, A2 Milk Company Ltd (ASX: A2M) share price and Blackmores Limited (ASX: BKL) share price have a lot riding on China.

Hopefully both sides will find a much needed circuit breaker for worsening geopolitical tensions.

More reading

• Global fund managers are bullish on these 3 things
• Why a2 Milk, Crown, Immutep, & Suncorp shares are dropping lower
• Why the Aventus (ASX:AVN) share price is rising today
• ASX 200 down 0.3%: Altium FY 2021 guidance, Crown drops, insurance shares sink
• Can Magellan (ASX:MFG) prosper in a market dominated by Macquarie (ASX:MQG)?

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended A2 Milk, Blackmores Limited, and Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post China is a much bigger threat to the ASX bull run than COVID appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3nCfsBz

ASX bulls have been hanging out for any piece of good news regarding a vaccine for COVID‐19, but it’s China should be keeping a wary eye out on.

Just as you think things couldn’t get any worse between Australia and our largest trading partner, the relationship just took a turn for the worse.

Prime Minister Scott Morrison defiantly stated that Australia won’t compromise on its sovereignty and security as China warned against making the Asian giant an enemy, reported Bloomberg.

China-Australia spat poses key risk for ASX investors

Australian business leaders who have been urging the Morrison government to tone down on the fiery rhetoric and offer gestures towards reconciliation will be disappointed.

The diplomatic chest beatings have not only gotten louder, but the relationship is likely to get worse before getting better.

The breakdown in Sino-Australia relations is putting the 43% S&P/ASX 200 Index (Index:^AXJO) bounce back from the COVID market meltdown in March at risk!

China is bigger than COVID

While its conceivable that the ASX can continue to climb even if it takes the world longer to get on top of the pandemic, it’s hard to imagine the bull run staying intact if China bans even more Aussie imports.

Chinese authorities have already moved to ban or restrict a range of Aussie goods entering that market. This includes copper, wine, barley, beef and timber, just to name a few.

The worry is that the black list will expand significantly and include iron ore. Not only is this Australia’s top export earner, China is really the only customer on the other side of the equation.

Brazil stepping up to the plate

This could come as Brazil’s exports of the commodity recovers from the COVID fallout. The rebound is already happening.

The latest data showed that Brazilian iron ore shipments increased by 64% week-on-week, or 7% year-on-year. This is the second highest level of the year of 8.1 million tonnes, according to UBS.

“Overall, Brazilian iron ore shipments have sequentially increased since the first quarter,” said the broker in a note issued on Monday.

“This explains the ongoing uptick in Chinese port inventories of Brazilian iron ore.”

ASX stocks at risk

Our mining giants like the BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price have a lot of lose in the China-Australia tiff.

They aren’t the only ones with an over reliance on the Chinese giant. The Treasury Wine Estates Ltd (ASX: TWE) share price, A2 Milk Company Ltd (ASX: A2M) share price and Blackmores Limited (ASX: BKL) share price have a lot riding on China.

Hopefully both sides will find a much needed circuit breaker for worsening geopolitical tensions.

More reading

• Global fund managers are bullish on these 3 things
• Why a2 Milk, Crown, Immutep, & Suncorp shares are dropping lower
• Why the Aventus (ASX:AVN) share price is rising today
• ASX 200 down 0.3%: Altium FY 2021 guidance, Crown drops, insurance shares sink
• Can Magellan (ASX:MFG) prosper in a market dominated by Macquarie (ASX:MQG)?

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended A2 Milk, Blackmores Limited, and Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post China is a much bigger threat to the ASX bull run than COVID appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3nCfsBz

It’s been a turbulent year for Unibail Rodamco Westfield (ASX: URW) shareholders. At the end of October, the Unibail share price was down 74% for the 2020 calendar year. That’s rough, even for a retail landlord operating in today’s pandemic battered times.

Year to date, however, the Unibail share price is now ‘only’ down 59%. This comes after a major share price rally last week saw shares gain 62% so far in November.

Much of that rally was owed to shareholders voting to reject the supervisory board’s 3.5 billion euro (AU$5.7 billion) capital raising, part of the company’s ‘reset’ plan to pay off its burdensome debt load.

The defeat of the capital raising proposal saw chair of the board, Colin Dyer, resign earlier this week. Leon Bressler, one of the activist investors stringently opposed to the capital raise, was appointed as the new chair.

With so much managerial shakeup, Christophe Cuvillier, Unibail’s CEO, was left in a tenuous position.

Indeed, in an announcement released today, Unibail confirmed that Cuvillier has been replaced by Jean-Marie Tritant, with the transition to take place on 1 January 2021.

What did Unibail’s management say?

Commenting on the shakeup of CEOs, Leon Bressler said:

A transition phase is beginning for URW. I am delighted that Christophe Cuvillier has agreed to lead it for the Group. His long experience as CEO, particularly during the ongoing health and economic crisis, will be very valuable. I am convinced that Jean-Marie will lead the company with great success.

Jean-Marie Tritant added:

This appointment is for me an immense honour and I fully appreciate the trust that has been placed in me. URW is an exceptional company that I joined more than 20 years ago and is a leader in its sector. I know that I can count on the Group’s teams, their talent and their energy. Thanks to them, we will be able to build on the Group’s future successes.

I would like to commend the tireless work accomplished by Christophe Cuvillier at the helm of URW since 2013 and his commitment to ensure a smooth transition as from today.

The Unibail share price is down 1.12% in early afternoon trading.

More reading

• Why the Unibail Rodamco Westfield (ASX:URW) share price is up 63% in 5 days
• ASX 200 up 0.35%: Moderna vaccine success, Afterpay update, Westpac upgraded
• ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility
• ASX 200 Weekly Wrap: ASX continues to hit post-COVID highs
• These were the best performing ASX 200 shares last week

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Another major shakeup for Unibail Rodamco Westfield (ASX:URW) shareholders appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3lLID4P