Category: Stock Market

Shares of Core Lithium Ltd (ASX: CXO) are trading lower today and now rest 6% in the red at $1.23 apiece.

Despite no sensitive news today, investors have sold off Core Lithium shares at a volume roughly 60% that of its 4-week average.

In wider market moves, both the S&P/ASX 300 Metals & Mining Index (ASX: XMM) and the S&P/ASX 200 Materials Index (ASX: XMJ) are down by nearly 3% today.

What’s up with the Core Lithium share price today?

The Core Lithium share price has gyrated this week amid a selection of sensitive updates released by the company.

That includes the signing of contracts for crushing services at its Finniss Lithium Project and obtaining environmental approval for its underground mine at the project.

ASX lithium players are also coming off a high base from yesterday’s trading session where several names came out on top after a week of mild volatility.

Unsurprisingly, the volatility has emerged amid a slowdown in the price of lithium, which had been racing to continuous new heights up until late March.

“Lithium carbonate prices in China fell to 462,500 yuan/tonne in early May, the lowest in two months on strong supply and lower demand,” Trading Economics showed.

Prices have since taken a small step back, levelling off back down to February 2022 levels.

Not only that, but reports show that investors may be shying away from the metals and mining sector(s), suggesting a potential flow-on effect to many names like Core Lithium.

US-based commodity ETFs saw net outflows of $556 million in April for instance, whilst global commodity and precious metals ETFs each realised similar trends.

Nevertheless, today’s loss extends Core Lithium’s decline to more than 16% over the last month of trading.

This year to date, the Core Lithium share price has held a 108% gain, bringing the upside for the past 12 months to more than 382%.

The post Why is the Core Lithium share price tracing 6% lower on Friday? appeared first on The Motley Fool Australia.

More reading

• Investing in ASX lithium shares? Here’s what you need to know
• Here are the top 10 ASX shares today
• 3 ASX 200 mining shares that surged more than 5% today
• Here’s why ASX lithium stocks are rocketing higher today
• Core Lithium share price is surging 7% on Thursday. What’s going on?

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.

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It has been an absolute bloodbath for the S&P/ASX 200 Index (ASX: XJO) and ASX 200 shares so far this Friday. As it currently stands, the ASX 200 has lost a nasty 2.3% and is well back under 7,200 points. But the Wesfarmers Ltd (ASX: WES) share price is faring far better.

As it currently stands, Wesfarmers shares are up by 0.16%. What’s more, the conglomerate broke even a few times today, rising as high as $49.86 a share. That’s well above the $49.46 it closed at yesterday.

So why is the Wesfarmers share price defying the market’s gloom so effectively today?

Why is the Wesfarmers share price defying the ASX 200 bloodbath?

Well, it’s not entirely clear. There’s been nothing out of the company itself of note today so far.

However, looking at the markets, we do see a pattern that would help illuminate things. The consumer discretionary sector that Wesfarmers operates in is currently the second-best performing sector of the ASX 200. Plus, other blue-chip shares outside the cyclical banking and mining sectors are also holding up pretty well.

Take Woolworths Group Ltd (ASX: WOW). Its shares are also escaping the worst of the market’s bad mood, and have only lost 0.3% so far today. It’s a similar story with Telstra Corporation Ltd (ASX: TLS), which has lost a similar amount. And the Coles Group Ltd (ASX: COL) share price is actually in the green today, up 0.65% so far at $18.60 a share.

So perhaps Wesfarmers’ relative strength today is a result of investors seeking ‘safety’ amongst ASX 200 blue-chip shares.

Whatever the reason, it probably feels pretty good to be a Wesfarmers shareholder right now. At the current Wesfarmers share price, this ASX 200 conglomerate has a market capitalisation of $56.11 billion, with a dividend yield of 3.43%.

The post Why is the Wesfarmers share price defying today’s ASX 200 bloodbath? appeared first on The Motley Fool Australia.

More reading

• Wesfarmers share price slips as Bunnings competition heats up
• 2 retail ASX shares Morgans rates as a buy now
• Is the Wesfarmers share price a buy or a sell in May?
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• Why did the Wesfarmers share price lag the ASX 200 in April?

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. 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 COLESGROUP DEF SET, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Macquarie Group Ltd (ASX: MQG) share price is having a day to forget.

In afternoon trade, the investment bank’s shares are down 8% to $186.42.

Why is the Macquarie share price tumbling lower?

Investors have been selling down the Macquarie share price today after the bank’s strong second-half growth wasn’t quite as strong as many in the market were expecting.

In case you missed it, this morning the company reported a 36% increase in full year operating income to $17,324 million and a 56% jump in net profit to $4,706 million. The latter comprises first-half profit of $2,043 million and second-half profit of $2,663 million.

While Macquarie revealed growth across all its businesses, the Macquarie Capital business was the standout with a 269% increase in its net profit contribution of $2,400 million. A net profit contribution represents management accounting profit before unallocated corporate costs, profit share and income tax.

This was supported by its Commodities and Global Markets (CGM) and Banking and Financial Services (BFS) businesses. Their net profit contributions increased 50% to $3,911 million and 30% to $1,001 million, respectively. Finally, the Macquarie Asset Management (MAM) business reported a 4% increase in its net profit contribution to $2,150 million.

Why wasn’t this good enough?

According to a note out of Goldman Sachs, Macquarie’s revenue and profit were both short of its expectations. It commented:

MQG’s FY22 NPAT was up +56% on pcp to A$4,706 mn and -2% below GSe but +4% above VA consensus. The miss to our estimates was revenue driven (-3.8% lower than GSe), driven primarily by a still strong trading result (+15% on pcp), but somewhat lower than we had forecast, a higher tax rate (2H22 26% vs. GSe 23%), partially offset outperformance on expenses (-6% lower than GSe).

One positive, though, is that it feels that Macquarie’s outlook commentary suggests that it is positioned to meet expectations in FY 2023.

As appears to now be normal practice, Macquarie has not provided any short-term outlook for the entire Group for FY22, noting a number of influences which might impact the outlook and highlighting that they are maintaining a conservative stance to capital, funding and liquidity. However, MQG has provided some high level guidance on the divisional performance.

While there are some “ups and downs”, particularly in CGM, there is nothing in the guidance that we expect will drive material divergence to our current FY23E NPAT forecast of A$4,133 mn (Visible Alpha consensus A$4,169 bn).

The post Macquarie share price tumbles 8% after FY22 results disappointment appeared first on The Motley Fool Australia.

More reading

• Everything you need to know about the latest Macquarie dividend
• ASX 200 midday update: Macquarie and REA updates disappoint
• Macquarie share price in focus amid FY22 profit surge
• 5 things to watch on the ASX 200 on Friday
• What is the outlook for the Macquarie share price in May?

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 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.

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ASX 200 tech shares are having a rough day following a 5% plunge on the US Nasdaq Composite (NASDAQ: .IXIC) overnight. The NASDAQ fell by 647 points to 12,317 — its lowest level since November 2020.

US tech giants were sold off, with Amazon.com Inc (NASDAQ: AMZN) losing 7.56%, Zoom Video Communications Inc (NASDAQ: ZM) down 7.47%, Apple Inc (NASDAQ: AAPL) down 5.57%, Alphabet Inc (NASDAQ: GOOGL, GOOG) down 4.7%, and Microsoft Corporation (NASDAQ: MSFT) shedding 4.36%.

What happens in the US, happens in Oz

As usual, the ASX is following the US lead today. The S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 4.37% at the time of writing. The S&P/ASX 200 Index (ASX: XJO) is also down 2.4%.

So, what’s the underlying cause for the fall in both US and ASX tech shares, and the markets in general today? Well, there’s a bunch of causes, actually. Investors are worried about rising interest rates, rising inflation, and a slowing US economy as the US Federal Reserve winds back quantitative easing.

Then there’s the Russia-Ukraine conflict which is pushing up commodity prices and the cost of energy, as well as the COVID-19 lockdowns in China. Lockdowns are a problem because they put economies on hold, and China remains our biggest two-way trading partner, so there can be an impact on demand for our goods and services.

Why are interest rates rising?

Central banks around the world are having to raise interest rates to deal with rapid inflation. The biggest issue with rising interest rates for share prices is that companies with big debt will end up paying more interest on their debt. That can equate to a big increase in costs, which will have a direct impact on earnings.

As a general rule, when investors get nervous, they sell off riskier assets — usually growth shares and primarily tech shares — before they sell anything else. This is because a lot of ASX tech shares are younger companies in expansion mode. Some are not yet making a profit, and they’ve taken on loads of cheap debt in recent years to grow their businesses. This strategy makes sense, but now that rates are rising, ASX tech companies need to adapt to increased costs.

It’s not like any of this is a surprise — ASX investors have known for some time that interest rate rises were imminent. In Australia, we had our first official cash rate increase this week when the Reserve Bank (RBA) increased the rate by 25 basis points from a historical emergency low of 0.1% to 0.35%. And Governor Lowe has plainly stated that there will be more to come. Over in the US, Fed Chair Jerome Powell has also told the market that it’s likely to be 50 basis point rises from here, and there will probably be a few.

What should ASX 200 tech shares investors do?

Even though the prospect of rate rises has been known for some time, the ASX is still reacting negatively. This begs the question, is the current turbulence creating an incredible opportunity to buy high-quality growth and tech shares at very attractive prices? That’s the trick with long-term investing – you need to be able to look beyond daily market panic and volatility and think years ahead.

Let’s look at some of the large-cap ASX 200 tech businesses whose share prices are being killed today.

• The Xero Limited (ASX: XRO) share price is down 7.69% to $87.88
• The Dicker Data Ltd (ASX: DDR) share price is down 6.31% to $12.33
• The WiseTech Global Limited (ASX: WTC) share price is down 6.08% to $41.61
• The NextDC Ltd (ASX: NXT) share price is down 5.26% to $10.44
• The Altium Limited (ASX: ALU) share price is down 4.36% to $30.73
• The TechnologyOne Ltd (ASX: TNE) share price is down 3.92% to $10.04
• The Computershare Limited (ASX: CPU) share price is down 3.29% to $24.11

Recap on ASX 200 tech shares

The S&P/ASX 200 Information Technology Index rose by 50.17% between the start of 2020 and the end of 2021. In 2022 so far, it has fallen 29.1%. By comparison, the ASX 200 rose by 10.56% between the start of 2020 and the end of 2021. In 2022 so far, it has fallen 5.35%.

The post Here’s why ASX 200 tech shares are having such a disastrous run on Friday appeared first on The Motley Fool Australia.

More reading

• Everything you need to know about the latest Macquarie dividend
• ASX 200 midday update: Macquarie and REA updates disappoint
• Why Apple, Meta Platforms, and Salesforce stocks plunged today
• The WiseTech share price has tumbled 20% in a month. Is it a bargain?
• Xero share price plummets 7% as tech sector struggles

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bronwyn Allen 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 Alphabet (A shares), Alphabet (C shares), Altium, Amazon, Apple, Dicker Data Limited, Microsoft, WiseTech Global, Xero, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Dicker Data Limited, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Headline: The US market fell 3.5% last night. We’re in for a tough ride today.

Well, that’s not the actual headline. Sub-editors are busily preparing the “$XX billion wiped off the ASX” headlines.

CNBC is running its “Markets in Turmoil” graphic.

Again.

Here we go.

Again.

Maybe.

Huh?

Look, no one likes falling markets.

If you’re a growth investor, you’ve been whacked pretty hard over the past 3 – 6 months.

But most people are nursing some recent losses of some sort or another, regardless of investing style.

Doesn’t feel great, does it?

Worse when the headlines are shouting at you, reminding you of what we’re going through.

Me?

I’ve been towelled up pretty well recently.

I don’t own any banks or energy companies – two sectors that have done better than most, in the past few months.

Worse, I own some companies the market has taken a serious dislike to.

It sucks.

(Not a term you’ll find in the finance textbooks, but I think it’s the right one.)

And sometimes, like many of you, I just want the pain to stop.

“Not again…” I think.

I mean, how much can a koala bear?

Be honest… you’ve been tempted to sell, right?

And wait until the coast is clear.

Like during the onset of the COVID pandemic in March 2020 when the market fell almost 40% in just over a month.

“Stop the ride… I want to get off!”, right?

And then, when the coast was…

What’s that?

The coast never really got clear?

Meanwhile, the market went past the pre-COVID high, and kept going?

Well, that’s unfortunate.

And the people who were ‘waiting’ for it?

They missed out on the mother of all rallies.

See, here’s the thing: you don’t get to choose how the market operates.

All you can do is play the cards you’re dealt.

It would be lovely if share prices just stayed low, and then we were told when it was time to invest again.

Lovely… but not bloody likely.

And, frankly, if everyone got the same memo, prices would still skyrocket by the time we got to buy, anyway.

Of course, it would be great to sell at the top and then buy at the bottom.

The problem is that those two points are only visible in hindsight. By which time it’s too late.

Seriously… there is no crystal ball. There is no secret formula. There is no way to ‘outsmart’ the mob when it comes to market timing.

Ask those who missed out as the All Ords jumped by more than 60% between March 2020 and August 2021 how their strategy turned out.

Now, ask those who just stayed invested how that turned out.

Actually, you don’t have to – I just told you.

And then let’s zoom out. The All Ordinaries Index (ASX: XAO) is up 56% (including dividends) over the past five years.

It’s up 163% over the last 10 years.

Those numbers include COVID and the recent slump.

Over the last 30 years?

Well, in the three decades to June 30, 2021 (the latest numbers we have) the Australian sharemarket turned $10,000 into $160,000, according to fund manager, Vanguard.

Using what complicated strategy?

What market timing approach?

Nothing.

No, not ‘nothing’: Nothing.

With a capital N.

The strategy was to leave it the hell alone.

Harder than you’d imagine to actually do.

But easy as pie to implement.

Now, here’s what you need to hear:

You need to stop trying so hard.

Stop trying to be smarter than the next guy.

Stop trying to ‘outsmart’ the market by timing your buying and selling.

Stop trying to guess which company, sector or style is going to gain the market’s favour in the next six weeks or six months.

Stop hitting ‘refresh’ on your broker’s website, or Google Finance.

Stop obsessing over small movements that will be inconsequential over the long term.

But, but, but…

Why not get out until the coast is clear?

We’ve covered, that, above.

What about buying the dip?

Well, if the market goes up, while you’re holding cash, by the time the ‘dip’ comes you might well have been better off being invested the whole time, anyway.

(Plus, when are you going to buy the dip? What if it keeps falling? You’re going to wait until the coast is clear? See above.)

I know you want to be smarter than the average bear.

I know you want to avoid volatility and losses.

I know you want to ‘lock in your profits’.

I get it.

But what I’m saying is that wanting them, and being able to actually do them, are different things.

Perhaps more importantly, be careful what you wish for – you could have protected yourself against losses by going to cash in March 2020… and missing that huge, strong rally.

Or you could have ‘waited until the coast is clear’ while the ‘Do Nothing’ strategy turned $10,000 into $160,000 over 30 years.

I mean, hey… if you didn’t want a $150,000 profit, you could have spent the last 30 years going for it.

Trading away.

Buy. Sell. Buy. Sell. Time the market. Buy the dips.

It might’ve even worked.

Maybe.

It might work this time.

Maybe.

You might even feel smarter than me, who’s suffering losses right now.

But seriously… is your active strategy – trying to be the Hare – really going to beat my Tortoise?

Given the market tends to rise over time?

Given we can’t know when the next slump – or boom – is coming, how long it’ll last, or when the coast will be clear?

Given that, over the last 30 years, $10,000 became $160,000 by doing… Nothing?

Pascal suggested that “all of humanity’s problems stem from man’s inability to sit quietly in a room alone”.

It isn’t a big leap to suggest than many investors’ problems stem from our inability to leave well enough alone.

Bottom line:

I’ve never ‘gone to cash’ in my life.

I hate having cash on the sidelines, because I know, historically, the market goes up somewhere around 10% a year, on average, so every year I’m not invested, I’m potentially missing out on that gain, while I wait for a dip that might not come.

I’m not letting my ego take over by trying to be ‘smarter than the other guy or girl’.

I’m putting the odds on my side.

I’m trying to be roughly right, most of the time, knowing that the long term compound results of that strategy have been astonishingly good.

No, not good.

Great.

You want to beat the market at its own game? Be my guest.

Me?

There are no guarantees. We can’t know the future.

But we can look at the past, and see what trends we expect will continue, over time.

So I’m playing my own game.

A game that I reckon has extraordinarily good odds of a great long-term outcome.

Choose carefully.

Fool on!

The post Are you investing with the odds in your favour? appeared first on The Motley Fool Australia.

More reading

• What rising interest rates can do to ASX shares
• 3 ASX All Ordinaries shares leaping 5% or more on Wednesday
• 3 ASX All Ordinaries shares rocking all-time highs today
• How the federal election will impact ASX shares: top economist
• 3 ASX mining shares that rocketed 20% or more today

Motley Fool contributor Scott Phillips 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.

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The S&P/ASX 200 Index (ASX: XJO) is a sea of red on Friday but that hasn’t stopped the PolyNovo Ltd (ASX: PNV) share price from charging higher.

In afternoon trade, the medical device company’s shares are up 6% to 92 cents.

Why is the PolyNovo share price racing higher?

The PolyNovo share price has avoided the market selloff today after it emerged that insiders have been buying the company’s shares.

According to two change of director’s interest notices, PolyNovo’s chairman and a non-executive director have both been buying shares.

The first notice reveals that chairman David Williams picked up 500,000 shares through an on-market trade on Thursday. Mr Williams paid an average of $0.8689 per share, which represents a total consideration of $434,450.

The other notice shows that non-executive director Andrew Lumsden bought 100,000 shares through an on-market trade on the same day. Mr Lumsden paid an average of $0.8731 per share, which represents a total consideration of $87,310.

Based on these purchases, these insiders appear to believe the PolyNovo share price is good value after hitting a multi-year low of 84 cents earlier this week.

Analysts at Macquarie are likely to agree with that view. Last month, the broker put an outperform rating and $1.60 price target on the company’s shares.

The post PolyNovo share price jumps despite the market selloff amid heavy insider buying appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Macquarie and REA updates disappoint
• Could Polynovo shares get kicked out of the ASX 200?
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Despite a recent rough trot, you’ll be amazed to know what $5,000 of Polynovo shares bought 5 years ago is worth now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended POLYNOVO FPO. 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.

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It has been an absolutely horrible day for ASX shares so far this Friday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down by a nasty 2.3% and back under 7,200 points. But the Qantas Airways Limited (ASX: QAN) share price is doing far worse.

Qantas shares are currently down by 3.7% so far today at $5.44 a share. That’s a clear underperformance of the broader market.

So what’s going on with Qantas shares? Why is the Flying Kangaroo dropping by so much more than the ASX 200?

Why is the Qantas share price caught in a tailspin today?

Well, it’s not entirely clear. Qantas hasn’t come out with any new news or announcements this Friday. Saying that, the company did have a big announcement yesterday. On Thursday morning, Qantas revealed that it is looking to fully acquire Alliance Aviation Services Ltd (ASX: AQZ), an air charter operator. Qantas will pay $4.75 in Qantas shares for every Alliance share owned.

But investors didn’t seem to be happy with this news yesterday. On a day when the ASX 200 rose by 0.8%, the Qantas share price fell by 0.35%. So it’s possible that negative sentiment surrounding this deal is still spilling into Qantas shares today.

Saying that, other ASX travel shares are also getting whacked today. Take Corporate Travel Management Ltd (ASX: CTD). Its shares are currently down by 4.2%. Webjet Limited (ASX: WEB) shares have lost 3.2% so far today. And the Flight Centre Travel Group Ltd (ASX: FLT) share price has dropped by 1.7%.

So perhaps the Qantas share price has just been caught up in the same tailspin as the other ASX travel shares. Whatever the reason, it has certainly not been a fun day to be a Qantas shareholder. No doubt investors will be hoping for a fresh start next week.

At the current Qantas Airways share price, this ASX 200 airliner has a market capitalisation of $4.7 billion.

The post Grounded! Why the Qantas share price is tanking 4% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: NAB disappoints, Qantas announces acquisition
• Qantas share price stalls amid Alliance Aviation acquisition
• Qantas share price lower amid Federal Court loss
• Top broker tips 17% upside for Qantas shares following Airbus order
• Why is the Webjet share price beating the ASX 200 today?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alliance Aviation Services Ltd. The Motley Fool Australia has positions in and has recommended Alliance Aviation Services Ltd. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After much anticipation, Chrysos Corporation Limited (ASX: C79) shares hit the ASX this morning, tumbling to trade 34.9% lower than the company’s initial public offering (IPO) asking price.

The mining technology company provides PhotonAssay, a gold assay solution. The tech is said to deliver faster, safer, and more accurate gold analysis.

At the time of writing, the Chrysos share price is $4.23, down from its IPO asking price of $6.50. However, earlier today it plunged to $3.90, representing a 40% tumble.

Let’s take a closer look at the mining technology company’s journey to the ASX and what it’s planning to do moving forward.

Chrysos share price sinks on ASX float

All eyes are on the Chrysos share price as the company hits the ASX following its $183.5 million IPO.

Some 28.2 million Chrysos shares were offered for $6.50 apiece under the company’s prospectus.

Funds raised through its IPO will help the company manufacture and deploy more PhotoAssay units. PhotonAssay works by exciting gold atoms with X-rays.

The company makes its money by leasing PhotonAssay units to customers under long-term contracts. Those customers pay the company per assay they process using the technology.

Chrysos already has contracts signed for 33 units, reflecting a total contract value of $448 million.

It also has sales commitments extending to 2024, a 5.4% market penetration, and an addressable market of 610 PhotoAssay units.

Its customers include two of the world’s biggest producing gold miners and three of the world’s largest testing, inspection, and certification companies.

The CSIRO – which originally conceived the technology – remains a major Chrysos shareholder.

Commenting before the company’s float, Chrysos CEO and managing director Dirk Treasure said:

PhotonAssay represents the first major advancement in gold assaying in centuries and aims to displace the existing fire assay method. It offers a unique solution to a range of operational, economic and ESG challenges currently facing mining and exploration companies.

We have already made significant headway in the acceptance of PhotonAssay within the gold sector … yet there is so much potential ahead of us for growth within our addressable market, and further expansion into the analysis of other elements such as silver and copper.

The company expected to list with a market capitalisation of around $637 million and 98 million outstanding shares. However, at its current share price, Chrysos has a valuation of approximately $401 million.

The post Chrysos Corporation share price plummets 40% on ASX debut appeared first on The Motley Fool Australia.

More reading

• Why is the Pilbara Minerals share price sinking 9% today?
• Atomos share price plunges 42% lower on ‘slower than expected sales’
• News Corporation share price crashes despite posting record quarterly result
• Everything you need to know about the latest Macquarie dividend
• ASX 200 midday update: Macquarie and REA updates disappoint

Motley Fool contributor Brooke Cooper 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.

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The Pilbara Minerals Ltd (ASX: PLS) share price is having a difficult day.

In early afternoon trade, the lithium miner’s shares are down 9% to $2.58.

Why is the Pilbara Minerals share price sinking?

Investors have been selling down the Pilbara Minerals share price on Friday amid a broad market selloff.

The lithium industry has been hit particularly hard, with Pilbara Minerals just one of many lithium shares that are recording sizeable declines. This is being driven by a selloff on Wall Street overnight which saw risk assets hit incredibly hard.

Given how far up the risk curve lithium shares are, Friday’s session was always going to be a difficult one for them.

Nevertheless, Pilbara Minerals’ shares are still thumping the market on a 12-month basis. Since this time last year, booming lithium prices have helped drive the company’s shares almost 120% higher.

Is this a buying opportunity?

One leading broker that is likely to see the weakness in Pilbara Minerals’ shares today as a buying opportunity is Citi.

Last week the broker put a buy rating and $3.60 price target on the company’s shares. This implies potential upside of approximately 38% over the next 12 months.

The post Why is the Pilbara Minerals share price sinking 9% today? appeared first on The Motley Fool Australia.

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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.

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The Atomos Ltd (ASX: AMS) share price has imploded following the release of a company trading update.

Evidently, investors are abandoning tech shares in droves on Friday, demonstrated by the 3.8% fall across the sector. However, the video technology company is feeling the pain more than most today. At the time of writing, Atomos shares are down a staggering 41.67% to 35 cents. In early trade, they sank as low as 26 cents.

The cataclysmic reaction to the announcement has resulted in the company collecting a new all-time low share price.

Promotional misstep and margin compression

Many Atomos shareholders are choosing not to stick around any longer following the company’s latest trading update.

According to the release, the first four months of the 2022 calendar year have been disappointing compared to expectations. The slower sales volume was attributed to a change in marketing approach and lower promotional activity.

In turn, FY22 revenue forecasts have been revised to adjust for the quieter trading conditions. Now, shareholders should expect revenue to range between $80 million and $90 million for the full year. Meanwhile, earnings before interest, tax, depreciation, and amortisation (EBITDA) margin is forecast to be between 6% and 8%.

Unfortunately for the Atomos share price, the insights within the update contained further caution for future expectations. For example, the recent COVID-19 lockdowns in Shanghai might put a short-term dent in the company’s production schedule. However, this is included in the newly advised guidance.

Furthermore, margins are slated to suffer while Atomos ramps up promotions and discounting of its cloud-enabled products. This is a targeted approach to give take-up of the company’s cloud services a nudge forward.

What about the positives for the Atomos share price?

On a positive note, the company highlighted that recent new launches have got a good reception. Encouragingly, the Aussie company landed itself seven awards at the National Association of Broadcasters (NAB) trade show recently.

Commenting on the successful event, Atomos interim CEO Trevor Elbourne said:

The reception we have received to our recent product launches is a strong endorsement of the technology roadmap we have been executing for the last couple of years. Whilst we were confident that the approach we were taking would resonate with our customers and the industry, it is gratifying to have that validated so strongly at NAB. The response we’ve had at NAB this year from all quarters has been so positive that I would mark this the most successful NAB for Atomos that I can recall.

However, Elbourne also shared in the disappointment with the revised guidance. A feeling clearly resonating across the market today as the Atomos share price sinks lower.

The Atomos share price is now down 68% since the beginning of the year.

The post Atomos share price plunges 42% lower on ‘slower than expected sales’ appeared first on The Motley Fool Australia.

More reading

• Why did the Atomos share price just tumble 16%?

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

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