Category: Stock Market

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

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

What happened

Over the past 24 hours, the price of the meme token Shiba Inu (CRYPTO: SHIB) has jumped roughly 27% as of 10:30 a.m. ET for no obvious reason, although the crypto market is rebounding today after what has been a brutal sell-off as of late. 

There are also a few other recent events that show how Shiba Inu continues to gain traction among the crypto and investing community.

So what

Some are touting a new milestone for Shiba Inu because the token recently reached 3.4 million followers on Twitter, which is now tied with Shiba Inu’s rival Dogecoin.

Both are meme tokens and very similar, so investors may view this as Shiba Inu starting to catch up to Dogecoin. Dogecoin currently has a bigger market cap, but it’s definitely within reach. 

Another interesting phenomenon is that Ethereum whales, investors that on average own $14 million in their crypto wallets, seem to be growing more and more interested in Shiba Inu, which runs on the Ethereum blockchain. Shiba Inu is now the second-largest holding among Ethereum whales.

Whales are the crypto equivalent of “smart” money. These are the investors that likely know how to invest in crypto better than the rest, so their moves are followed closely.

Now what

The rebound in the crypto sector today looks to be investors taking a break from what has been intense selling and perhaps using this as an opportunity to buy the dip.

While Shiba Inu certainly moves with the crypto market to some extent, I am not a believer in this token because it possesses no real-world use case or any kind of technical advantage over other cryptocurrencies. 

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

The post Why Shiba Inu popped today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Thinking about buying Shiba Inu? Read this first
• Why Bitcoin, Dogecoin, and Shiba Inu are falling today

Bram Berkowitz has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. The Motley Fool Australia owns and has recommended Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

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

from The Motley Fool Australia https://ift.tt/9M8DnyT

At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on track to record a modest gain. The benchmark index is currently up 0.1% to 6,531.5 points.

Here’s what is happening on the ASX 200 today:

St Barbara share price tanks

The St Barbara Ltd (ASX: SBM) share price has been sold down to a multi-year low on Wednesday. This morning the gold miner revealed that it has deferred making a final investment decision on the Simberi sulphide expansion in favour of a strategic review. St Barbara also advised that there is a near-term risk of disruption to its Touquoy Operation.

Fletcher Building shares jump

The Fletcher Building Limited (ASX: FBU) share price is storming higher today. This follows the release of the building products company’s investor day update. That update reveals that Fletcher Building has reiterated its earnings before interest and tax (EBIT) guidance for FY 2022. It expects EBIT before significant items to come in at ~NZ$750 million.

Zip shares drop to multi-year low

The Zip Co Ltd (ASX: ZIP) share price has continued its slide and hit a new multi-year low. This buy now pay later provider’s shares have come under pressure this week amid speculation it could be about to give up on the UK and US markets. This is due to the large losses the company is making internationally.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Fletcher Building share price with a 6% gain following the release of its investor update. Going the other way, the worst performer has been the St Barbara share price with a 12% decline. This follows the aforementioned update out of the gold miner.

The post ASX 200 midday update: St Barbara and Zip drop to multi-year lows appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 reasons why I think the Soul Pattinson share price is an excellent buy right now
• Why is the St Barbara share price crashing 14% to a multi-year low?
• Why is the Fisher & Paykel share price heading south today?
• 5 things to watch on the ASX 200 on Wednesday
• The Zip share price is down 90% in 2022. Why I won’t be buying

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 positions in and has recommended ZIPCOLTD FPO. 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.

from The Motley Fool Australia https://ift.tt/Hz4SPjO

The Rio Tinto Limited (ASX: RIO) share price is an interesting investment proposition. The iron ore price has been falling – it’s down 15% in two weeks.

So, does a lower iron ore price mean that Rio Tinto shares are more attractive or less attractive?

Why higher iron are prices are good

As a commodity business, Rio Tinto generates revenue and profit largely by mining resources and selling them to customers.

The higher the commodity price, the better revenue, cash flow, and net profit after tax (NPAT) for the business.

Those bigger financial numbers can also lead to much bigger shareholder payouts in the form of dividends.

So, it’s clear that current, ongoing shareholders would want commodity prices to be higher so that they can boost profit and returns.

Certainly, new investors who buy today can benefit from big dividends while commodity prices are high and cash flow is rolling in.

In Rio Tinto’s FY21 full-year result, it reported that its NPAT rose by 116% to US$21 billion, free cash flow increased 88% to US$17.7 billion, and the total annual dividend was increased by 87% to US$10.40 per share.

But the tricky part for investors is deciding when to buy new shares. Does a lower iron ore price make the Rio Tinto share price more attractive?

My thoughts on the right time to buy Rio Tinto shares

Commodities such as iron ore often work in cycles because of the relationship between supply and demand. Both supply and demand can shift quite a bit during economic cycles.

Sometimes global/Chinese demand for iron ore will reduce and we just don’t know when that will be.

When the iron price falls, the market reduces its profit expectations and then the Rio Tinto share price normally declines. We saw this in 2016 and towards the end of 2021.

Dividends are a good part of the returns, but a 10% decline in the Rio Tinto share price can wipe out the monetary gains of receiving a 10% dividend yield. So, it’s not just about the dividend. I think total returns should be the goal.

I will also point out that some brokers currently rate Rio Tinto as a buy, including Macquarie and Morgan Stanley. The Macquarie price target is $135, implying a possible upside of around 30%, with the broker liking the stronger-than-expected iron ore price which can help profit generation.

It’s impossible to predict when commodity prices and share prices are going to move but I think that when the iron ore price sizeably moves, the Rio Tinto share price is likely to follow it. Since 8 June 2022, the Rio Tinto share price has fallen more than 11%. The share price is now close to the 2022 low.

Foolish takeaway

So, my conclusion is that it’s better to look at Rio Tinto when the share price has fallen significantly along with the iron ore price. I don’t have a crystal ball to know if or when iron ore prices will go below US$100 per tonne or US$90 per tonne, but that’s the sort of level that I’d be looking at the Rio Tinto share price for my own portfolio.

However, I do like that the ASX mining share is exposed to a number of commodities. That means it’s not reliant on just iron ore with assets in aluminium, copper, titanium dioxide, and lithium.

The post The iron ore price has fallen 15% in 2 weeks. So, is the Rio Tinto share price a buy or sell? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX 200 midday update: BHP and Rio Tinto rebound, Westpac rated as a buy
• Rio Tinto share price sinks on iron ore weakness
• Why are ASX 200 iron ore shares getting hammered on Monday?
• The lithium and iron ore ASX shares that I like right now: expert
• Why is the Rio Tinto share price diving 5% on Friday?

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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/hCwVjTf

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is climbing in mid-morning trade.

After losing more than 10% in the past month, the bank’s shares are up 1.87% to $9.25 today.

In contrast, the S&P/ASX 200 Financials (ASX: XFJ) index is down 0.18% to 5,717.7 points.

Let’s take a look at the latest news surrounding the company.

Bendigo Bank renews Australia Post deal

Investors are bidding up the Bendigo Bank share price following the company’s positive update.

According to its media release, Bendigo Bank advised it has signed a new five-year deal with Australia Post for its Bank@Post services.

Under the agreement, Bendigo Bank customers will have access to banking services at more than 3,500 post offices in Australia. This allows individuals and small businesses to conveniently make withdrawals, deposits and balance enquiries free of charge.

The decision to renew the partnership means that both parties have worked together for more than 20 years.

Bendigo Bank estimates that over 120,000 of its customers use Bank@Post’s services each year. In total, there are around 2 million Bendigo and Adelaide Bank customers.

Bendigo Bank CEO and managing director Marnie Baker commented on the deal:

As Australia’s better big bank, we are committed to giving our customers choices about how they do their banking with us, whether that is online, mobile or face-to-face. Extending our partnership with Bank@Post for another five years is a demonstration of that commitment.

The partnership will ensure our customers have access to almost 4000 locations across the nation where they can conduct transactions over the counter – through our combined branch networks – getting us closer to our goal of becoming Australia’s bank of choice.

Bendigo Bank share price summary

Since the start of 2022, the Bendigo Bank share price has recorded relatively flat gains for the period, up 1.65%.

The company’s shares reached a 52-week low of $8.43 in December 2021 before almost reaching that feat again this month.

Bendigo Bank commands a market capitalisation of approximately $5.2 billion.

The post What’s boosting the Bendigo Bank share price today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX 200 bank shares languish on Thursday despite market lift
• Bendigo Bank share price slides 7% as ASX banking basket unwinds on Wednesday
• Can the Bendigo Bank share price surge in 2022 despite its ‘last in town position’?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/woh194c

The Washington H. Soul Pattinson and Co Ltd (ASX: SOL) share price keeps drifting lower and I think this makes the S&P/ASX 200 Index (ASX: XJO) share even more attractive.

While bear markets are not fun in the moment, I believe that they present long-term buying opportunities.

I have been buying Soul Pattinson shares recently for my own portfolio. If the share price were to drop any further then I believe it’d be an even better long-term idea.

At the current Soul Pattinson share price, I think the investment house represents good long-term value for the following reasons:

New Hope Corporation Limited (ASX: NHC)

New Hope is one of the larger positions in the investment conglomerate’s portfolio. This business is one of the largest coal miners in Australia.

Coal may not exactly be the most popular commodity due to environmental issues, but coal prices are near record levels, as New Hope points out. The ASX coal mining share noted the thermal coal price rise came after the Russian invasion of Ukraine, raising concerns around global energy security.

The broker Macquarie thinks New Hope is going to pay a grossed-up dividend yield of 31% in FY22 and 25% in FY23.

Soul Pattinson will be a significant beneficiary of this cash flow and this could help shore up any short-term profit weakness from some of its other portfolio investments.

Sell-off is creating opportunities to buy

Soul Pattinson already owns a portfolio of assets and investments across different industries including telecommunications, resources, building products, property, financial services, swimming schools, luxury retirement living, and more.

Hopefully, that diversified portfolio can do well over the long term.

However, the Soul Pattinson investment team has the freedom to adjust the portfolio and make new investments as opportunities are identified.

Over the long term, I think it’s times like this that can be useful for Soul Pattinson because it can take advantage of the lower asset prices.

Growing dividend yield

I think that one of the most attractive features about the business is its dividend.

There aren’t many ASX dividend shares that have increased the dividend every year for more than a decade.

Soul Pattinson has grown its dividend every year for shareholders for more than two decades, going back to 2000.

The company has been able to grow its dividend because its underlying investments have, as a group, been growing the dividends payable to Soul Pattinson. The investment conglomerate pays out most of its annual regular cash flow as a dividend but keeps some of it to re-invest into more opportunities.

However, as the Soul Pattinson share price falls, this also has the benefit of increasing the potential dividend yield for investors in new shares.

At the current valuation, Soul Pattinson has a grossed-up dividend yield of 4.1%.

The post 3 reasons why I think the Soul Pattinson share price is an excellent buy right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the Fisher & Paykel share price heading south today?
• 5 things to watch on the ASX 200 on Wednesday
• How does the Macquarie dividend stack up against the ASX big four banks?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• How to start investing in stocks: This ASX 200 share is where I’d begin

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/NevXsb6

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

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

What happened 

Shares of Tesla (NASDAQ: TSLA) spiked Tuesday after CEO Elon Musk clarified some comments he made earlier this month about upcoming layoffs at the electric vehicle company. 

The EV stock was up by 9.35% by the session’s close.

So what 

Earlier this month, Reuters reported that Tesla would lay off 10% of its salaried employees, citing an email written by Musk to employees. In the email, Musk said that he had a “super bad feeling” about the economy. He also made it clear that those planned cuts did not include workers directly involved in building Tesla’s products.

But on Tuesday, Musk further clarified his comments in an interview with Bloomberg, saying that while Tesla will reduce its salaried staff by 10% over the next three months or so, it will also continue to hire hourly workers. Musk said the combination of layoffs and hiring will result in just a 3.5% net reduction of Tesla’s workforce.

Musk said that reduction would not be “not super material” and predicted that in a year, the company will have more total employees than it has now.

Investors were apparently happy to hear that the company isn’t reducing its overall headcount as much as originally expected.

Now what 

Despite Tesla’s share price pop Tuesday, the stock is down 31% year to date. And while it’s good to see the EV stock make gains, investors may want to prepare for more share price swings ahead as investors process high inflation, Federal Reserve interest rate hikes, and a market that is nervous about a potential slowdown in the economy. 

That doesn’t mean Tesla isn’t still a good long-term investment, it just means that shareholders could still experience more volatility in the near term. 

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

The post Why Tesla stock soared today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Should you really buy stocks now or wait a while longer?
• Down 45%, here’s 1 reason to buy Tesla’s dip and 2 reasons to stay away
• Why Tesla stock sold off 7% today
• Why Tesla stock jumped 5% today
• Why Tesla shares were rising today

Chris Neiger 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 Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

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

from The Motley Fool Australia https://ift.tt/TGWgu5Y

The Cleanaway Waste Management Ltd (ASX: CWY) share price has started lower on Wednesday, currently 3% down at $2.60.

The company today released an update in relation to its New Chum inert landfill in Ipswich, Queensland.

In wider market moves, the S&P/ASX 200 Index (ASX: XJO) has lifted 43 basis points from the open to 6,551.5.

What did Cleanaway announce?

The company provided an update on the New Chum site following damage caused by the flood
events this year.

As a quick recap, the company said:

In February 2022, a significant rain event resulted in inundation of a new cell that was under construction at New Chum. Shortly thereafter the site was closed and related remediation activities commenced, including tankering water offsite for treatment and disposal. Towards the end of May 2022 more rain events added to the body of water, further impacting remediation.

As a result, Cleanaway says the site is likely to remain closed throughout FY23 due to the extensive work required.

The company also provided a clear update on its expected costs for the remediation. It may recover some costs through insurance – but this won’t appear in FY22 financial statements.

In FY22, $30-$40 million of costs are expected to be incurred relating to rectification and remediation at New Chum. These include $11 million of costs expected to be incurred through to 30 June 2022 with the balance relating to a rectification provision to cover further works to be undertaken in FY23.

A further $6 million of net costs will be incurred in FY22 relating to property damage and rectification
and remediation at other sites because of the floods.

The company also mentioned it was awaiting the outcome of a Queensland Planning and Environment Court (2021) decision regarding the “application for a height rise extension”.

Cleanaway share price snapshot

In the last 12 months, the Cleanaway share price has fallen 4.76%, and nearly 17% this year to date.

The post Cleanaway share price slides amid revised costs from flood damages appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Dividend beasts: 3 ASX 200 shares that have powered up their dividends over the past 5 years
• Why is the Cleanaway share price heading south today?
• Why Appen, Cleanaway, Syrah, and Westpac shares are dropping

Motley Fool contributor Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/ofOrVcd

Are you looking for some options in the mid cap space? If you are, you might want to check out the ones listed below.

Here’s why analysts at Goldman Sachs think these ASX mid cap shares could be in the buy zone right now:

 Hipages Group Holdings Ltd (ASX: HPG)

The first mid cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider.

The Hipages platform connects tradies with residential and commercial consumers, and also allows them to communicate and run general admin duties.

Goldman Sachs is positive on the company and sees it as a great long term option for investors. In response to recent share price weakness, it commented:

The fundamentals of this business remain very strong, and we see a number of drivers transforming this marketplace into an essential ecosystem for tradies over the long term.

Goldman Sachs has a buy rating and $2.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another mid cap share that Goldman likes is Readytech.

It owns a portfolio of enterprise software businesses across several market verticals. This includes higher education, HR/payroll, work pathways and local government.

Goldman notes that the company’s competitive position is underpinned by its focus on market niches that are under-served by both large and small enterprise software competitors. It expects this to support strong growth over the medium term.

In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.

The broker also highlights the company’s defensive qualities, which could be important if Australia falls into a recession.

RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company’s earnings profile in an economic downturn.

Goldman has a buy rating and $4.60 price target on Readytech’s shares.

The post Goldman Sachs names 2 mid cap ASX shares to buy appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 reasons why I think the Soul Pattinson share price is an excellent buy right now
• Why Tesla stock soared today
• Cleanaway share price slides amid revised costs from flood damages
• Why is the St Barbara share price crashing 14% to a multi-year low?
• This ASX coal share is flying higher today after CEO speaks his mind

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 positions in and has recommended Hipages Group Holdings Ltd. and Readytech Holdings Ltd. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/UOfDn3T

The St Barbara Ltd (ASX: SBM) share price has come under significant pressure on Wednesday.

In morning trade, the gold miner’s shares have tumbled 14% to a multi-year low of 97.5 cents.

Why is the St Barbara share price sinking?

Investors have been selling down the St Barbara share price on Wednesday following the release of an announcement.

According to the release, the company has deferred making a final investment decision on the Simberi sulphide expansion in favour of a strategic review.

The release notes that St Barbara faces capital investments at each of its three operations in the next two years. This strategic review will assess the best allocation of capital for risk and return compared with the company’s other projects.

St Barbara also revealed that it has received unsolicited enquiries from potential investors in Simberi and anticipates the Sulphide expansion project to proceed either under St Barbara or different ownership.

Trouble at Atlantic Gold

St Barbara also advised that there is a near-term risk of disruption to its Touquoy Operation. This is due to potential permitting delays for its tailings management facility after authorities sought further clarification on aspects of the in-pit tailings deposition application.

The company has made an application to raise the existing tailings management facility wall as an interim solution while the in-pit deposition matter is progressed to conclusion.

However, should the application not be successful, St Barbara will be forced to suspend the operation and place it in care and maintenance mode.

Finally, St Barbara revealed that it will undertake a re-design of its operating model, including for the provision of corporate support. This will result in a rationalisation of the corporate workforce including a consolidation of the company’s two corporate offices into one.

The St Barbara share price is now down over 30% in 2022.

The post Why is the St Barbara share price crashing 14% to a multi-year low? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These were the best performing ASX 200 shares last week
• 5 things to watch on the ASX 200 on Friday
• Why Block, Nanosonics, St Barbara, and Woodside shares are dropping
• Can the St Barbara share price recover its losses in 2022?
• 5 things to watch on the ASX 200 on Friday

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.

from The Motley Fool Australia https://ift.tt/ivKXCEx

ASX coal shares have, as a whole, been riding high on the back of record thermal and coking coal prices.

Coal prices were already high by historic standards heading into 2022. This came as supplies were unable to match soaring demand, following years of limited investment in exploration and new project development.

Russia’s invasion of Ukraine and the resulting sanctions on energy rich Russia put further upward pressure on energy prices, seeing coal trade at all-time highs.

As you’d expect, that’s been a welcome tailwind for ASX coal shares.

How have ASX coal shares been tracking?

While the All Ordinaries Index (ASX: XAO) is down 15% in 2022, New Hope Corp Ltd (ASX: NHC) shares have gained 43% while the Whitehaven Coal Ltd (ASX: WHC) share price is up 74%.

As for ASX coal share Stanmore Resources Ltd (ASX: SMR), it’s up a whopping 103% year-to-date, spurred by a 10% intraday gain today.

That gain comes after Stanmore Resources CEO Marcelo Matos expressed his displeasure at the new coal royalty tax increases announced by the Queensland government.

Stanmore share price flying higher after CEO speaks his mind

After amending the coal royalty regime as part of Queensland’s 2022-23 budget, Stanmore noted that coal producers in the state will be paying the highest royalties in the world.

For prices less than $175 per tonne, royalties will remain unchanged.

For higher prices, the following three new royalty tiers were introduced:

• 20% for prices above $175 per tonne
• 30% for prices above $225 per tonne
• 40% for prices above $300 per tonne

Matos was less than pleased.

According to Matos:

Stanmore is very disappointed with these extraordinary tax increases given its commitments to the Isaac Downs Project and re-opening of the Millennium and Mavis mines, as well as the very recent and significant US$1.2 billion investment in the Queensland coal sector with the acquisition of our 80% in BMC.

Royalty rates in Queensland were already among the highest in the world prior to these increases and come at a time when the Queensland coal industry was just recovering from the losses experienced during the market downturn in 2020 and 2021.

The increases to the royalty rates without formal notice or consultation with the industry are unprecedented. The impact of these increases will be felt the most by workers and suppliers in regional Queensland communities that underpin the resources sector and make it Queensland’s largest export industry.

If ASX coal shares need to pay more money into government coffers, investors may well feel the pinch in the form of lower dividend payouts down the road.

The post This ASX coal share is flying higher today after CEO speaks his mind appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX All Ordinaries shares up by more than 130% so far in 2022
• 3 ASX All Ordinaries shares starting the week with new 52-week highs

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.

from The Motley Fool Australia https://ift.tt/hNalGe8