Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is having a good start to the week. In afternoon trade, the benchmark index is up 0.75% to 7,872.8 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 6% to 15.5 cents. This was despite the lithium miner announcing the appointment of its new CEO this morning. The company has appointed Paul Brown as CEO, effective 4 June 2024. The release notes that Mr Brown has a successful professional career spanning 25 years in the Australian resources industry. This includes as the current CEO of $49 million Hastings Technology Metals (ASX: HAS). The company said: “The Board’s priorities in selecting a new CEO were identifying someone with lithium mining experience who will consider all options for the restart of mining operations to guide Core’s activities in response to the low price lithium environment.”

Duratec Ltd (ASX: DUR)

The Duratec share price is down 4% to $1.06. This has been driven by a guidance downgrade from the engineering, construction, and remediation contractor. It was targeting revenue of $570 million to $610 million and EBITDA of $45 million to $52 million in FY 2024. However, due to delays in expected project awards, Duratec now expects revenue of $550 million to $565 million and EBITDA of $46 million to $48 million.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price is down 17% to 24 cents. This morning, this lithium developer announced firm commitments for an equity raising of $14 million to institutional, sophisticated, and professional investors. These funds will be raised at 23 cents per new share. This represents a 20.7% discount to where its shares last traded. The equity raising will provide working capital headroom and financial flexibility for the ongoing development of the Hombre Muerto West (HMW) Phase 1 construction.

Michael Hill International Ltd (ASX: MHJ)

The Michael Hill share price is down 19% to 49.5 cents. Investors have been hitting the sell button today in response to the release of a trading update from the jewellery retailer. It notes that the positive sales momentum it had been expecting through the second half has not materialised. As a result, second half sales are broadly in line with the first half and its margins remain under pressure. This led to its first half earnings being wiped out by a loss in the third quarter.

The post Why Core Lithium, Duratec, Galan Lithium, and Michael Hill shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Why brokers just revised their outlook for these 4 top ASX All Ords shares
• Why did this ASX All Ords stock just crash 24%?
• Why did the Core Lithium share price just crash 6%?
• These are the 10 most shorted ASX shares
• Why these ASX mining shares have ‘got some huge advantages’: Chalmers

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.

Four leading ASX All Ords shares just earned broker re-rates.

Some for the better.

Some for the worse.

This could explain why some of the ASX All Ords shares are outperforming the All Ordinaries Index (ASX: XAO)’s 0.6% intraday gains, while some are decidedly lagging.

So, without further ado, here are the four companies in question.

(Broker data courtesy of The Australian.)

ASX All Ords stocks getting broker downgrades

The first company getting a broker re-rate today is iron ore miner Rio Tinto Ltd (ASX: RIO).

The Rio Tinto share price is up 2.5% today at $135.46 a share. This sees the ASX All Ords share up 24% over 12 months.

Following on that strong run, Citi doesn’t believe there’s much more upside ahead for the Rio Tinto share price over the coming year.

The broker cut its rating to ‘neutral’. Although Citi left its target price for Rio Tinto shares unchanged at $137.00, which still represents a potential upside of 1.4% from current levels. Not to mention the 4.8% fully franked trailing dividend yield.

According to Citi’s Paul McTaggart, the mining giant is no longer trading at a “deep discount to valuation” following on the big share price surge.

McTaggart also isn’t convinced China’s new stimulus measures are enough to rekindle its struggling property sector and materially boost iron ore demand.

According to McTaggart (quoted by The Australian):

While the recent Politburo meeting pledged to support the property sector through supply and inventory management to stabilise house price and sales, Citi thinks this is unlikely to stimulate incremental steel demand.

Furthermore, China steel mills are now loss-making again, and we are heading into a period of seasonal weakness for mining equities.

Also getting downgraded today is jewellery retailer Michael Hill International Ltd (ASX: MHJ).

The Michael Hill share price is down a painful 20% today to 50 cents per share following a disappointing trading update released after market close on Friday. The company reported its sales margins remain under more pressure than management had anticipated.

This profit warning saw Citi cut the ASX All Ords share to a ‘neutral’ rating and reduce its target price by 21% to 68 cents a share. Notably, that’s 36% above the current level.

Commenting on the trading update, Citi’s James Wang said:

Further, the absence of comments about any recent improvement makes us cautious on the outlook. Ongoing gross margin weakness also raises questions around the effectiveness and sustainability of the brand elevation strategy.

Michael Hill shares are down 51% over 12 months.

Two shares with brightened outlooks

On the other side of the ledger, ASX All Ords share Pointsbet Holdings Ltd (ASX: PBH) was just raised to an ‘overweight’ rating by JP Morgan.

The Pointsbet share price is up 11% today at 51 cents.

The strong run, and broker upgrade, follow on this morning’s announcement of boosted FY 2024 earnings guidance for the sports betting company.

The ASX All Ords share lifted the forecast for its normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) loss for the full year to the range of $4 million to $6 million. That’s up from the prior guidance of a full-year EBITDA loss of $9 million to $14 million.

Which brings us to the fourth ASX All Ords share getting a broker re-rate today, bank stock Bendigo and Adelaide Bank Ltd (ASX: BEN).

The Bendigo share price is up 1.4% today at $10.88 a share.

Following on Friday’s trading update, Citi has increased its price target by 9% to $9.25 a share. Which tells me the broker expects some headwinds for the bank stock ahead. Though less than it previously expected.

Among the positive metrics Bendigo Bank reported on Friday was an increase in its net interest margins (NIMs) over the 10-month period.

Bendigo Bank’s NIM post revenue share arrangements was 1.87%, up from 1.83% reported in 1H FY 2024.

The ASX All Ords share has gained 26% over 12 months.

The post Why brokers just revised their outlook for these 4 top ASX All Ords shares appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Duratec, Galan Lithium, and Michael Hill shares are sinking today
• ASX 200 mining stocks flying higher on ‘most relaxed’ Chinese stimulus ever
• Guess which ASX All Ords share just rocketed 25% on an earnings upgrade
• Buy 300 shares in this glorious ASX 200 dividend stock and create almost $2,000 in passive income
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase 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 JPMorgan Chase and PointsBet. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are over 2,000 shares available to buy on the ASX, so choosing which ones to entrust with your hard-earned cash can be challenging. Today, I’m taking a closer look at three ASX shares that I think are worth investing in for the long term.

Of the three, I recently invested in two of them for my own portfolio. And if someone gave me $10,000 to invest today, I’d put some more money into these companies, plus an ASX exchange-traded fund (ETF).

I’m a fan of buying growing businesses that have seen temporary share price falls because it allows me to invest at a cheaper price/earnings (P/E) ratio. When it comes to buying companies with good growth prospects at a reasonable price, here’s why I really like these three:

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price has dropped by around 25% since 9 January this year, making the ASX 200 stock my favourite pick right now.

The business is a major KFC operator, with growing outlet numbers in Australia, the Netherlands, and Germany. Collins Foods is also responsible for Taco Bell restaurants in Australia, with 27 outlets at the last count.

KFC has been a strong brand in the fast food world for decades, but it doesn’t have the same geographic reach as McDonald’s. As such, I believe Collins Foods has plenty of room for growth in the years ahead if it just keeps adding to its network in Australia and Europe. The company’s KFC network grew by four locations in Australia and eight locations in the Netherlands in the first half of FY24.

The combined Dutch and German populations are over 100 million, but the company’s European revenue was less than a third of Australia’s revenue in HY24. Therefore, I think the ASX consumer stock has a long growth runway in Europe.

The business is achieving pleasing operating leverage, with rising profit margins, enabling net profit to grow quicker than revenue. HY24 revenue rose 14.3%, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 16.7%, and underlying net profit after tax (NPAT) went up 28.7%.

Impressively, the business has grown its dividend every year since 2014, and it currently has a grossed-up dividend yield of 4.2%. According to Commsec, the Collins Foods share price is valued at just 12x FY26’s estimated earnings.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is one of the largest corporate travel operators in the world.

The Corporate Travel Management share price has dropped by around 30% from 29 January 2024, as displayed on the chart below.

However, the long-term outlook for the business is very compelling, in my opinion. Management hopes to win at least $1 billion of new client work each year for the next few financial years.

Corporate Travel plans to grow its revenue (organically) by at least 10% per annum over the next five years. According to the company, its operating leverage can also help boost EBITDA by 15% per annum in the next five years.

Furthermore, if the ASX 200 company makes any acquisitions in the near future, there’s potential for revenue growth in addition to the numbers above. At the current Corporate Travel Management share price, it’s valued at just 12x FY26’s estimated earnings.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This ASX ETF focuses on US companies with strong, sustainable economic moats, or competitive advantages, which are expected to last for many years.

Competitive advantages can take many forms, including network effects, cost advantages, brand power, intellectual property, and so on.

To make it into this ETF’s portfolio, businesses must be priced attractively compared to what Morningstar analysts think they’re worth. Examples of companies currently held by MOAT include Nike, Etsy, Campbell Soup, and Alphabet (Google).

With a portfolio full of good-value, competitively-advantaged companies, I’m optimistic this fund can continue its winning streak.

The ASX ETF has performed strongly over the long term, delivering an average annual return of around 15% over the past five years.

The post I’d invest $10,000 into these excellent ASX shares for the long term appeared first on The Motley Fool Australia.

More reading

• How I plan to invest my tax cuts
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• Why these ASX ETFs could be fantastic buy and hold options
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• How ASX growth shares can become top dividend stocks

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Collins Foods. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Corporate Travel Management, Etsy, and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended Alphabet, Collins Foods, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Galan Lithium Ltd (ASX: GLN) share price is having a very tough start to the week.

At one stage, the ASX All Ords lithium stock was down 24% to a 52-week low of 22 cents.

Its shares have since recovered slightly but remain down by over 18% at 23.7 cents.

Why is this ASX All Ords stock crashing?

The catalyst for this decline has been the company receiving firm commitments for an equity raising of $14 million to institutional, sophisticated, and professional investors.

According to the release, these funds will be raised at 23 cents per new share, which represents a 20.7% discount to where the ASX All Ords share last traded.

In addition, participants under the placement will receive one new unlisted option for every two shares subscribed. The new options will have an exercise price of 35 cents each and have an expiry date of two years from their issue date. However, the new options will be issued subject to shareholder approval at a general meeting to be held in early to mid-July 2024.

Why is it raising funds?

Management notes that the equity raising will provide working capital headroom and financial flexibility for the ongoing development of the Hombre Muerto West (HMW) Phase 1 construction. This is whilst it finalises negotiations of alternative funding solutions, which includes debt and prepayment facilities that will enable the completion of HMW Phase 1.

HMW is a ~16 km by 1-5 km region on the west coast of Hombre Muerto Salar neighbouring Arcadium Lithium (ASX: LTM) to the east. It is currently comprised of twenty one mining tenements. The company highlights that geophysics and drilling at HMW demonstrated significant potential of a deep basin.

A binding offtake and financing agreement (pending due diligence) for Phase 1 production has been signed with Glencore plc. (LSE: GLEN). In March 2024 an updated mineral resource estimate was delivered totalling 7.9Mt of LCE @ 883mg/l Li.

The ASX All Ords’ lithium stock’s managing director, Juan Pablo Vargas de la Vega, was very pleased with the outcome of the capital raising. He commented:

We are delighted with the support for the Placement and welcome a number of new investors to the register. In addition, on behalf of the Board of Directors, I would like to thank our shareholders for their ongoing support. Funds raised from the Placement will allow the Company to further progress negotiations to complete the already advanced development of its 100% owned Hombre Muerto West lithium brine project in Argentina. We look forward to putting investors funds to work.

The post Why did this ASX All Ords stock just crash 24%? appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining stocks flying higher on ‘most relaxed’ Chinese stimulus ever
• Why is this ASX All Ords stock staying strong as profits crash 76%
• Should you buy Telstra stock on a pullback?
• Why did the Core Lithium share price just crash 6%?
• Guess which ASX All Ords share just rocketed 25% on an earnings upgrade

Motley Fool contributor James Mickleboro owns Arcadium Lithium shares. 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.

S&P/ASX 200 Index (ASX: XJO) mining stocks are flying higher on Monday.

While the ASX 200 is up a very respectable 0.7% in early afternoon trade, Fortescue Metals Group Ltd (ASX: FMG) shares, BHP Group Ltd (ASX: BHP) shares and Rio Tinto Ltd (ASX: RIO) shares are all racing ahead of those gains.

Here’s how the three ASX 200 mining stocks are faring at the time of writing:

• The BHP share price is up 2.1% at $45.84
• The Fortescue share price is up 1.8% at $27.43
• The Rio Tinto share price is up 2.8% at $135.82

So, what’s spurring ASX 200 investor interest on Monday?

I’m glad you asked!

ASX 200 mining stocks eyeing bazooka Chinese stimulus

Today’s strong run for BHP, Fortescue, and Rio Tinto shares follow on some sizeable gains posted on Friday.

As we reported on the day, the ASX 200 mining stocks were catching tailwinds from the news that China’s government was upping its stimulus measures to get the nation’s struggling economy back onto its growth track.

Friday saw China kick off the sale of 1 trillion yuan (AU$210 billion) worth of ultra-long special sovereign bonds. Analysts expect a lot of that money will go to support China’s struggling property markets and infrastructure sector, both of which are ravenous steel consumers.

And the core ingredient for steel, of course, is iron ore.

Copper prices also lifted on Friday. Today, iron ore and copper are up once more.

The iron ore price is up 0.8% to US$117.40 per tonne, while the copper price is up 2.4% to US$10,668. That sees the red metal, the second biggest revenue earner for the ASX 200 mining stocks, up a whopping 30% over the past 12 months.

Today the miners are continuing to enjoy a lift with due thanks to China.

That’s because atop the $210 billion in bond sales, the People’s Bank of China moved to eliminate minimum mortgage interest rates alongside lowering the minimum down payment ratio for buyers by 5%.

Commenting on the government’s renewed efforts to boost the real estate sector, Chinese Vice-Premier He Lifeng said (quoted by The Australian Financial Review), “The property sector is related to the interest of the masses and the big issue of economic development.”

Also likely spurring interest in the ASX 200 mining stocks are reports that China’s central government will pressure local governments to purchase dwellings and transform these into lower cost housing.

“This is the most relaxed down payment policy ever in China. It signals the central government is really prioritising home buying demand,” Yan Yuejin, research director at E-house China Research and Development Institute said.

The post ASX 200 mining stocks flying higher on ‘most relaxed’ Chinese stimulus ever appeared first on The Motley Fool Australia.

More reading

• BHP shares charging higher as the clock ticks down on the Anglo American takeover
• Buy 300 shares in this glorious ASX 200 dividend stock and create almost $2,000 in passive income
• Top ASX dividend shares to buy in May 2024
• ASX 200 mining shares charging higher amid China’s $210 billion cash injection
• What this unprecedented short squeeze signals for ASX copper stocks

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.

Elders Ltd (ASX: ELD) is one ASX All Ords stock performing surprisingly well today, considering its underwhelming FY2024 half-year results.

Ticking past midday, shares in the agribusiness are up 2.1% to $8.39. Meanwhile, the S&P/ASX All Ordinaries Index (ASX: XAO) is a more modest 0.6% higher in Monday afternoon trading.

It’s a hard one to rationalise after the downright demolition of company earnings compared to a year ago.

Annualising the company’s half-year statutory net profit after tax (NPAT), Elders would trade on a forward price-to-earnings (P/E) ratio of roughly 56 times earnings. The industry average is approximately 17.

So why are investors racing to buy more of this ASX All Ords stock today?

First-half shocker

Today’s numbers depict a bleak stretch at Elders for the six months ending 31 March 2024. Here are the key figures from the half-year results:

• Sales revenue down 19% from the prior corresponding period to $1,341.8 million
• Statutory net profit after tax down 76% to $11.6 million
• Underlying return on capital falling from 16.9% to 11.4%
• Underlying earnings per share (EPS) down 72% to 9.1 cents per share
• Total dividends per share down 22% to 18 cents per share (with 50% franking)

The weakness was attributed to four headwinds: challenging seasonal conditions, cautious client sentiment, softening crop input prices, and lower livestock prices.

Unexpected rainfall across eastern and southern Australia provided a boost in the second quarter. However, the recovery in the back half of the six-month period proved inadequate to make up enough ground.

Elders’ agricultural chemicals segment experienced the largest half-year decline in gross profits, falling 22.4% year-on-year. Lower crop protection and fertiliser sales were to blame. On a positive note, the company saw volume growth across all its products, suggesting increasing market share.

At the other end of the spectrum, the real estate services side of the business performed strongly, with gross profits increasing 22.5% year-on-year. An improvement in residential turnover and property management fees bolstered the segment.

Still, Elders is outperforming the broader ASX share market today on a massive profit slump. What gives?

What’s holding this ASX All Ords stock up today?

Investors might be focusing on future prospects today. Elders presented a possibly redeeming attribute for those with a longer-term view.

The outlook for the full year is more optimistic. Elders expect improved trading conditions in the second half, stemming from a better sentiment. In addition, livestock prices (such as cattle and sheep) are expected to stabilise.

Galvanising the ASX All Ords stock, management reaffirmed their guidance of $120 million to $140 million in underlying earnings before interest and taxes (EBIT) for FY24.

The Elders share price is up 17% versus a year ago.

The post Why is this ASX All Ords stock staying strong as profits crash 76% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Mitchell Lawler has positions in Elders. 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 Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) stock has suffered a sizeable fall in the past year, down by around 15%, as the chart below shows.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is trading close to all-time highs after rising 8% over the past year. Yes, Telstra shares have significantly underperformed, but I think this means the market is now undervaluing its prospects.

Let’s take a closer look at whether Telstra stock is an appealing investment at today’s prices.

Telstra stock valuation

One of the most popular metrics for judging the value of a business is profit.

I like to consider profit in earnings per share (EPS) terms rather than net profit after tax (NPAT) because I feel EPS is more relevant for investors given it’s measured in per-share terms.

Commsec estimates forecast Telstra to make EPS of 18.1 cents in FY24, 19.5 cents in FY25 and 21.8 cents in FY26, suggesting Telstra’s profit is forecast to be going in the right direction.

The current Telstra share price is valued at 20x FY24’s estimated earnings and 17x FY26’s estimated earnings.

I think these are very reasonable numbers, particularly for such a defensive ASX share. Most households and businesses use (and need) phones and an internet connection, ensuring ongoing demand for Telstra’s services – it’s not likely to see any major revenue volatility. And broadly speaking, investors are usually willing to pay a higher earnings multiple for a business if the profit seems resilient.

Growth metrics are going the right way

Generally, I only like to invest in businesses if they have compelling long-term outlooks. After all, if profit isn’t growing, it’s unlikely a company’s share price and dividends can sustainably grow either.

In my opinion, there are a couple of important metrics that can help drive Telstra’s profit growth.

Mobile subscriber growth is a very useful part of the company’s success. Australia’s ongoing population growth is helping increase the number of people needing a mobile service. As the business with the biggest and arguably best mobile network, Telstra is attracting a steady stream of new subscribers.

Over the 12 months to 31 December 2023, Telstra saw an increase of 625,000 mobile services in operation, which represented a 4.6% year-over-year increase.

How much subscribers pay for their subscriptions can also impact earnings, measured with the average revenue per user (ARPU) metric. The HY24 period saw Telstra’s ARPU increase by 3.4%, excluding a prepaid one-off from product migration (ARPU was 2.1% growth year over year including the one-off).

These two metrics helped Telstra’s overall HY24 earnings before interest and tax (EBIT) increase by 10.8% to $1.6 billion, while the net profit after tax (NPAT) went up by 11.5% to $0.9 billion, and EPS grew 12% to 8.4 cents.

Telstra’s T25 strategy aims to increase its underlying EPS at a compound annual growth rate (CAGR) in the “high teens” to FY25. If the company achieves this goal, I think it will boost shareholder returns (via both the dividend and share price).

My verdict on Telstra stock

With a grossed-up dividend yield of 7% and the huge ongoing growth in demand for data, I think Telstra has a very promising future as a defensive play. The low Telstra share price in May hasn’t been seen since 2021. I’d call the telco a compelling buy right now based on its strong market position and the positive outlook for earnings.

The post Should you buy Telstra stock on a pullback? appeared first on The Motley Fool Australia.

More reading

• Top ASX dividend shares to buy in May 2024
• Here are 3 reliable ASX shares I’d buy instead of the big four banks right now
• With $1,000 to invest, should I buy ASX growth stocks or income shares?
• How much could $10,000 invested in Telstra shares be worth next year?
• Inherited a substantial sum of money? Here’s how I’d spend it (including the ASX stocks I’d buy)

Motley Fool contributor Tristan Harrison 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Core Lithium Ltd (ASX: CXO) share price is having another day to forget on Monday.

Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed on Friday trading for 16.5 cents apiece. In late morning trade today, shares are swapping hands for 15.5 cents apiece, down 6.2%.

For some context, the All Ords is up 0.6% at this same time.

The Core Lithium share price is underperforming the benchmark and most of its lithium peers following a major new leadership announcement.

Here’s what we know.

CEO appointment fails to lift Core Lithium share price

As you’re likely aware, March saw the rather abrupt departure of former Core Lithium CEO Gareth Manderson. The company’s CFO, Doug Warden, was appointed as interim CEO.

Today, the Core Lithium share price has failed to ignite on the news that Paul Brown will take over the helm commencing on 4 June.

The board noted Brown’s 25 years of experience in the Australian resources industry. That includes his prior leadership roles with ASX rare earths miner Hastings Technology Metals Ltd (ASX: HAS), Mineral Resources Ltd (ASX: MIN), and Fortescue Ltd (ASX: FMG).

Brown is currently serving as the CEO of Perth-based Hastings, and he was said to have played a vital role in delivering significant mining operations during his stint with Fortescue and Mineral Resources.

What did management say?

Commenting on the new leadership appointment intended to turn the battered Core Lithium share price around, chair Greg English said, “Paul is an outstanding executive with 25 years’ experience in the Australian mining industry and a proven track record of operating and delivering across different commodities.”

English also alluded to restarting lithium mining at the company’s flagship Finniss project in the Northern Territory, which was paused in January due to plunging lithium prices.

“Paul’s lithium mining and operations experience makes him the ideal person to lead Core as we prepare to restart mining at Finniss in a cost efficient and sustainable way,” he said.

English added:

The board’s priorities in selecting a new CEO were identifying someone with lithium mining experience who will consider all options for the restart of mining operations to guide Core’s activities in response to the low price lithium environment.

Brown offered some optimistic words for the ASX lithium stock’s outlook.

“Core is an excellent company with the potential to grow into a significant lithium company,” he said.

Brown continued:      

I will focus on an operational review of the Finniss Lithium Project and the opportunities for the exploration program to grow resources.

I look forward to working with the Core senior team to transform the way we work as we look to continually improve and develop a sustainable lithium project.

Undoubtedly, he has his work cut out for him.

The Core Lithium share price is down a painful 86% since this time last year.

The post Why did the Core Lithium share price just crash 6%? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Why these ASX mining shares have ‘got some huge advantages’: Chalmers
• One ASX lithium stock to buy and one to sell
• These are the 10 most shorted ASX shares
• At 14 cents, has the Core Lithium share price become a bit of a joke?

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 All Ordinaries Index (ASX: XAO) is up a solid 0.5% on Monday, with one ASX All Ords share doing plenty of the heavy lifting.

Shares in the sports betting company closed Friday at 45.5 cents. In morning trade today, they rocketed to 57.0 cents, up a blistering 25.3%. After some likely profit-taking, they are currently changing hands for 51.5 cents apiece, up 13.2%.

Any guesses?

If you said Pointsbet Holdings Ltd (ASX: PBH), give yourself a virtual gold star.

Here’s what’s boosting the ASX All Ords share today.

Why is the ASX All Ords share soaring?

The Pointsbet share price is leaping higher after the company management announced upgraded earnings guidance for the full 2024 financial year (FY 2024).

The boosted outlook follows ongoing strong year-to-date trading in H2 FY 2024 and increased operational efficiency and productivity.

The ASX All Ords share now expects its normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) loss for the full year to be in the range of $4 million to $6 million. That compares to prior FY 2024 guidance of a full-year EBITDA loss of $9 million to $14 million.

Pointsbet highlighted the “significant improvement” from the $49 million normalised EBITDA loss it reported for FY 2023 for its continuing operations.

Commenting on the improved earnings outlook that’s sending the ASX All Ords share rocketing, Pointsbet CEO Sam Swanell said, “Today’s guidance upgrade is a result of the Company’s continued strong trading performance together with improved efficiency and productivity.”

Swanell added:

It is particularly notable to see that the company has been able to continue to deliver such impressive results, whilst simultaneously undertaking a complex technical and operational migration, separation, and re-organisation, with the recent completion of the sale of the US business.

We continue to invest for further growth, in particular in our core technology and product capabilities and our outsized marketing investment. This is driving our market share growth and setting the Company up for further success in FY 2025 and beyond.

How have Pointsbet shares been tracking

The Pointsbet share price charts of the past year can be somewhat deceiving, as shareholders will have fared better than the charts indicate.

That’s because the ASX All Ords share has twice engaged in some sizeable capital returns to its shareholders over the year.

The last big share price plunge on 30 April came after Pointsbet shares traded ex-capital return for the 39 cents per share (totalling $127 million) that eligible shareholders received for the company’s sale of its United States operations.

The post Guess which ASX All Ords share just rocketed 25% on an earnings upgrade 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 positions in and has recommended PointsBet. 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.

Star Entertainment Group Ltd (ASX: SGR) shares are in a trading halt this morning as speculation gathers around potential bidders.

If true, the board might need to channel their inner Kenny Rogers: “Know when to hold ’em, know when to fold ’em, know when to walk away and know when to run”. Both the former CEO and chair already decided to run, but will the struggling casino operator finally fold to an opportunistic offer?

With the Star Entertainment share price locked at 45 cents apiece today, we might have an answer sooner rather than later.

‘Hard Rock’ or a hard place?

The proposition of taking control of Star at all-time lows appears to have prompted some action over the weekend. With its back up against the wall, the embattled Australian casino operator might have a way out of the web of worries it has walked into.

Star confirmed the rumours this morning. As stated in its release, the company has received interest from “a number of external parties regarding potential transactions”. Although none are yet at a stage of ‘substantive discussions’.

The release refrained from naming any names. However, word on the grapevine is that a fellow casino and hotel company on the other side of the world is one of those interested in taking over this troubled $1.3 billion ASX-listed business.

The Australian Financial Review reported that Hard Rock Hotels and Casinos is the suspected company inspecting Star shares for potential.

While not confirmed, it’s believed the United States-based company wants to revitalise Star with a rebranding, converting it into more of an entertainment precinct than a casino pure-play. This comes after people from Hard Rock met with Star stakeholders about a month ago.

Agreeing to a takeover when your share price is at its lowest ever would be a tough pill for shareholders to swallow. But it might be the backstop investors need to prevent further value destruction. As my colleague Sebastian Bowen penned earlier this month, Star losing its license could devastate the company.

Hope for higher Star shares

There’s always a silver lining. In this situation, the positive is multiple parties are taking a look.

As we’ve seen before, a bidding war can ensue when two or more bidders want an asset bad enough. If the ASX-listed casino operator is fortunate, this might be how the Star share price puts some distance between itself and the recently set all-time low of 38 cents a pop.

For now, shareholders will need to sit tight for further details to be revealed.

The post Are Star shares now rolling the dice on a rescue bid? appeared first on The Motley Fool Australia.

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• The Star Entertainment share price is trading around all-time lows of 40 cents: How low can it go?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.