Category: Stock Market

As a major big four ASX bank share (or big 5 these days), the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has always been one of the most watched metrics on the S&P/ASX 200 Index (ASX: XJO). As a top 10 ASX 200 share, ANZ shares have a fairly large influence over the entire ASX 200.

So let’s take a journey through ANZ’s share price history. It’s quite telling to look at a blue chip share like ANZ through this lens, as we can really see how much it lives up to this reputation as a strong, stable and relatively safe investment.

So here’s how the ANZ share price looks over the past 10 years:

So as you can see, it’s far from ‘up and to the right’ for ANZ shares. At the last ANZ share price of $27.27, investors would have bought those same shares for that same price way back in February 2013. Or back in October 2006 for that matter. That’s 15 years of doing a whole lot of not much.

ANZ share price: stuck in the mud?

Of course, there was ANZ’s meaty and (mostly) fully franked dividends that would have helped ease the pain. But it’s safe to say that ANZ has not been a market-beating investment for most long-term shareholders over the past 15 years.

Of course, we’ve seen highs and lows far over and under that price over this period too. ANZ’s last all-time high was hit back in April 2015. Believe it or not, that’s when ANZ shares got close to $37 each. As it stands today (6½ years later), ANZ remains around 25% off of those highs. Just over the past 5 years alone, the ANZ share price remains down by 4.18%.

But then again, ANZ is also today a good 80% or so above the lows that we saw during the COVID crash last year. That was when ANZ got to under $15 a share. So it hasn’t been all bad news for shareholders. In more recent times, the picture has been a lot brighter too. ANZ is up 18.4% year to date in 2021 alone, and is also up 17.3% over the past 12 months.
Sometimes, perspective is everything!

At the current ANZ share price of $27.27, this ASX banking share has a market capitalisation of $76.88 billion, with a dividend yield of 5.21%.

The post ANZ (ASX:ANZ) share price history: What caused the biggest ups and downs? appeared first on The Motley Fool Australia.

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• Own ANZ (ASX:ANZ) shares? Here’s how the bank just got booted out of the big four
• Macquarie (ASX:MQG) is now a big four bank
• Is the CBA (ASX:CBA) share price premium relative to other big banks justified?
• 2 ASX dividend shares with attractive yields to buy
• Leading brokers name 3 ASX shares to buy 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 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 Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price has been one to watch in 2021 so far.

It first got chins a-wagging when Fortescue hit a new all-time high of $26.58 a share back in July. That represented a gain of close to 40% just between late March and that date. This was of course fuelled by record-high iron ore prices, which climaxed at more than US$220 a tonne mid-year.

But in more recent months, the story has turned fairly nasty. Iron ore was not destined to remain at those highs for long. As of today, it is sitting at just over US4100 a tonne after falling close to US$90 recently. This naturally sent the Fortescue share price plummeting. It fell from over $26 a share in July to a new 52-week low of $13.90 by late October

It’s worth noting the Fortescue share price has recovered somewhat since then. It’s today sitting at $17.88, nearly 30% above its new low. Perhaps the hullabaloo surrounding Fortescue Future Industries has helped in this matter.

But at this current share price, Fortescue shares now offer a seemingly impossible dividend yield of 20.02%. Get ready for this — grossed-up with Fortescue’s full franking, that dividend yield is worth an insane 28.6%.

Can that be true? Are Fortescue shares really offering a yield of that stupendous magnitude right now?

Does Fortescue really have a 28% dividend on the table?

Well, not quite. A trailing dividend yield indicates the yield that investors would have received at the current Fortescue share price over the last 12 months. It doesn’t mean this will stay the same for the next 12 months.

So yes, Fortescue’s last two (fully franked) dividend payments came in at $2.11 per share and $1.47 per share respectively. That totals $3.58 a share in total and comes to a yield of 20.02% on the current Fortescue share price. But remember, these dividends were funded by the record-high iron ore prices we’ve just discussed. The market knows that with iron ore now less than half of the price it was just a few months ago, these dividends are not likely to be repeated next year. 

It might not be as bad as you might think though. As my Fool colleague Tristan covered earlier this week, brokers at Macquarie Group Ltd (ASX: MQG) are predicting Fortescue will still be able to pay out $1.97 in dividends per share for FY 2022, and $1.42 per share in FY 2023. That would still equate to sizeable raw yields of 11.02% and 7.94% respectively on the current Fortescue share price.

There will be more than a few shareholders who would be hoping that indeed turns out to be the case.

At the current Fortescue share price of $17.88, this miner has a market capitalisation of $55.42 billion.

The post Is the Fortescue (ASX:FMG) dividend really worth 28% in November? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 heaviest traded ASX 200 shares this Tuesday so far
• What’s causing the Fortescue (ASX:FMG) share price to leap 9% today?
• 2 high-yielding ASX 200 dividend shares
• Leading brokers name 3 ASX shares to sell 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 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 Bruce Jackson.

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The Endeavour Group Ltd (ASX: EDV) share price has risen by around 10% over the last four months. But is the company about to lose some of its fizz?

If readers haven’t heard of Endeavour before, it’s a business that was divested out of Woolworths Group Ltd (ASX: WOW).

The company owns several brands of alcohol and drinks businesses including Dan Murphy’s, BWS, Jimmy Brings, Cellarmasters, Langton’s, Pinnacle Drinks and Shorty’s Liquor.

Endeavour Group also has a hotels business, it’s the largest on-premise venue operator and currently manages a portfolio of more than 330 distinct licensed venues in capital cities and urban and regional centres.

Analysts aren’t bullish about the Endeavour share price

Whilst the business has been gaining in recent times, some analysts think the company has run too far.

Credit Suisse currently has a sell/underperform rating on the business with a price target of $6.19 – that’s more than 10% lower than where it is now.

The broker thinks that Endeavour is going to see growth of alcohol sales and a recovery for hotel revenue.

Credit Suisse thinks that Endeavour Group’s expenses will continue to be higher than normal.

Another broker – Morgans – thinks Endeavour is a hold with a price target of $6.95. Morgans also referenced the FY22 first quarter numbers to come to its opinion about the business which also includes expectations of a stronger performance from its hotel business and lockdowns seemingly much less likely to happen.

FY22 first quarter update

Let’s look at the first quarter numbers that the brokers are referring to. For the 14 weeks from 28 June 2021 to 3 October 2021, total sales fell by 1.2% to $2.94 billion.

There was a mixed performance between its two divisions. The retail sales were flat, falling by just 0.2% to $2.65 billion. But the hotels division, suffering from lockdowns in major markets, saw sales drop by 9.9% to $282 million. Nationally, around 40% of hotels were closed across the quarter and various trading restrictions were in place across the country.

Sales declines can obviously impact an investor’s thoughts about the Endeavour share price.

Of particular note, the online sales of the retail segment saw growth of 34.4% year on year. This saw the online penetration increased from 8.6% in FY21 to 11.5% in FY22. Endeavour acknowledged that a portion of this growth is due to the shift to at-home consumption because of venue closures. But the online penetration also grew outside of NSW and Victoria.

With the hotels business, Endeavour is thinking about the longer-term by investing in building and improving its hotels business. In the quarter, it acquired the Terrey Hills Tavern in NSW and The Manly Hotel in Queensland. It also carried out a renewal of the Sunnybank Hotel and has continued to implement digital ordering and payment technology across its hotels.

At the end of the quarter, its portfolio consisted of 336 hotels and five managed clubs.

The company said with its quarterly update:

Looking beyond the immediate challenges, the group is well positioned for growth, with a diversified portfolio of quality hotels, strong retail brands and digital assets, supported by a focused and resilient team.

Endeavour share price valuation

Using Credit Suisse’s estimate for FY22, Endeavour shares are valued at 28x FY22’s estimated earnings and 24x FY23’s estimated earnings.

The post Is the party over for the Endeavour (ASX:EDV) share price? appeared first on The Motley Fool Australia.

More reading

• The Woolworths (ASX:WOW) share price is up 20% so far in 2021. Here’s why
• Alcohol and intelligence: 2 ASX shares on the way up

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 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 Bruce Jackson.

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Today, the S&P/ASX 200 Index (ASX: XJO) pulled ahead in late trade to finish above its previous close. At the end of the session, the benchmark index finished 0.11% higher at 7,407.3 points.

The Aussie market fended off a negative performance today with the help of a stellar performance from tech shares. It appears investors had an appetite for tech companies, while banks and consumer staples fell to the wayside. To the benefit of the index, a number of miners decided to rally as iron ore reclaimed the US$100 per tonne threshold.

The question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Novonix Ltd (ASX: NVX) was the biggest gainer today. Shares in the battery technology company jumped 11.68% higher. While the company had no new announcements today, it did reveal the opening of its new facility in Chattanooga, Tennessee yesterday. Find out more about Novonix here.

The next biggest gaining ASX share today was Nickel Mines Ltd (ASX: NIC). The nickel mining company rallied 6.46% to $1.40 despite there being no announcements from the company today. Uncover the latest Nickel Mines details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Novonix Ltd (ASX: NVX)	$10.71	11.68%
Nickel Mines Ltd (ASX: NIC)	$1.40	6.46%
Yancoal Australia Ltd (ASX: YAL)	$2.81	5.24%
Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)	$32.29	4.57%
Technology One Ltd (ASX: TNE)	$11.99	4.53%
Mineral Resources Ltd (ASX: MIN)	$45.77	4.47%
Afterpay Ltd (ASX: APT)	$111.55	4.01%
Liontown Resources Ltd (ASX: LTR)	$1.87	3.60%
Pro Medicus Ltd (ASX: PME)	$61.84	3.24%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$125.61	3.12%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Thursday
• Here’s why the Nickel Mines (ASX:NIC) share price is soaring 15% so far this week
• Why is the Novonix (ASX:NVX) share price surging 11% to an all-time high today?
• ASX 200 (ASX:XJO) midday update: EML rockets, NAB given ACCC green light
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO and Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Pro Medicus Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Sunstone Metals Ltd (ASX: STM) share price finished deeply in the red today, down 15.45% to 9.3 cents.

Below we look at the latest drilling update from the ASX resource explorer, which appears not to have sufficiently roused investor spirits following earlier positive reports that saw the Sunstone Metals share price rocketing last week.

What drilling results were reported?

The Sunstone Metals share price fell hard today despite the company reporting positive assays from its El Palmar deposit in Ecuador. The company said the assays confirm the deposit is a significant gold-copper porphyry discovery.

The results from the latest drill hole included:

• 1 metres at 0.75grams of gold per tonne and 0.20% copper from 32 metres
• Within 259.6 metres at 0.41g/t gold and 0.14% copper from 10.4 metres

Assays are pending on 3 other completed drill holes with a fourth currently underway. Sunstone said all the drill holes to date are mineralised from shallow depths.

Commenting on the results, Sunstone’s managing director Malcolm Norris said:

This is a big system and has huge potential. It is early days, but importantly every hole has been mineralised… We are seeing some evidence that the first seven holes are defining the upper parts of a large porphyry system with multiple mineralising intrusions emplaced into wallrocks. Given this, we are increasingly excited about the deep targets and the potential for the mineralisation to have a vertical extent of more than 1 kilometre.

Norris also said the company will commence drilling its second hole at the high-grade Alba gold target on the Bramaderos project, also in Ecuador, this weekend. He added the company is well-funded to explore both projects, with approximately $19 million in cash and equities.

Speaking of the Bramaderos project, it was drill results from this site that look to have triggered a massive spike in the Sunstone share price last week.

Sunstone Metals share price retreats after surging 100% in days

Last Thursday, 18 November, the Sunstone Metals share price closed the day up by more than 50%.

As the Motley Fool reported on the day, “The company advised that it has obtained ‘exceptional’ assays from the first drill hole at its Alba target located at the Bramaderos site”.

Shares finished flat last Friday and gained another 10% on Monday.

Some profit-taking looks to have taken place on Tuesday, with the Sunstone Metals share price finishing down 13%, only to bounce back yesterday, finishing up 10%.

This leads us to speculate that today’s 14% fall could have been driven by another round of profit-taking.

To see why, here’s how Sunstone Metals shares have been moving.

Sunstone Metals share price snapshot

Over the past 12 months, the Sunstone Metals share price is up an eye-popping 840%. And that’s factoring in today’s retrace. For some comparison, the All Ordinaries Index (ASX: XAO) has gained 12% over the past full year.

The past week has seen some continuing remarkable moves. From last Tuesday, 16 November through to the end of trading on Monday, the Sunstone Minerals share price almost doubled.

While shares are down 21% now since Monday, bear in mind the Sunstone is still trading 57% higher than it was this time last month.

The post Why did the Sunstone Metals (ASX:STM) share price slump 15% today? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Sunstone Metals (ASX:STM) share price is rocketing 36% today

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 Bruce Jackson.

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The Latrobe Magnesium Limited (ASX: LMG) share price is suffering on the ASX today despite the release of a seemingly positive update.

The company updated the market on the ongoing build of its Latrobe Valley Demonstration Plant this morning.

Unfortunately, the market is bidding the Latrobe Magnesium share price down following the company’s announcement. Right now, its shares are swapping hands for 9.3 cents, 7% lower than their previous closing price.

Let’s take a closer look at the news the up-and-coming magnesium producer provided the market today.

Latrobe Magnesium share price slumps

The Latrobe Magnesium share price is struggling today despite the company posting news of significant progress made on early stage works at its demonstration plant.

The plant is expected to use Latrobe Magnesium’s patented process to extract and sell magnesium metal and cementitious material from industrial fly ash, a waste product from the Yallourn coal-fired power station.

The company plans to sell the refined magnesium to customers based in the United States and Japan.

At this point in time, more than 72 suppliers have registered their interest in the Latrobe Valley Demonstration Plant project.

In today’s update, the company announced work to repair fencing around the plant’s site has finished.

The preliminary architectural drawings for the administration building refurbishment have also been finalised.

The company is now working to submit an application for a building permit. Additionally, it will be awarding a contract for the site’s clean-up works to a local contractor shortly.

A contract for the electrical restoration work has already been issued. Mincore will be working alongside local contractors over the coming weeks to restore power to the site.

Finally, engineering is kicking off.

Process engineering is focusing on finalising the flowsheet, heat, and mass balance and commencing piping and instrumentation diagrams.

Structural engineering is commencing steelwork for the briquette trolley support structure and bunker designs for char and silica products.

Meanwhile, mechanical engineering is undertaking plant layout planning and optimisation has begun.

Right now, the Latrobe Magnesium share price is 365% higher than it was at the start of 2021. It has also gained 86% over the last 30 days.

The post Here’s why the Latrobe Magnesium (ASX:LMG) share price is sinking 7% today appeared first on The Motley Fool Australia.

More reading

• Why is the Latrobe Magnesium (ASX:LMG) share price down again today?
• Why the Latrobe Magnesium (ASX:LMG) share price bolted 38% today
• Why the Latrobe Magnesium (ASX:LMG) share price rocketed 23% on Tuesday
• Why are ASX magnesium miners getting so much love this week?
• ASX magnesium shares are going gangbusters. What’s happening?

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 Bruce Jackson.

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It certainly was a rollercoaster of a day for the Kogan.com Ltd (ASX: KGN) share price on Thursday.

The ecommerce company’s shares rose 3.5% to $9.19 shortly after the release of its annual general meeting update. However, once everything was absorbed, it didn’t take long for the Kogan share price to give back those gains and more.

The company’s shares ultimately ended the day 4% lower at $8.51.

What happened to the Kogan share price on Thursday?

There appear to have been a few catalysts for the volatility in the Kogan share price on Thursday.

One was its trading update. Although Kogan spoke about further revenue growth during the first four months of FY 2022, this hasn’t translated into profit growth.

Kogan revealed that its adjusted EBITDA (including Mighty Ape) was down 61% year to date to $12.4 million. Excluding Mighty Ape, adjusted EBITDA was down 70.3% to $9.5 million over the prior corresponding period.

Given that Kogan reported adjusted EBITDA (including Mighty Ape) of $10.8 million for the first quarter, this means it only added $1.6 million of EBITDA in October. That compares to a first quarter average of $3.6 million per month. And this is despite the company advising that it had resolved previous inventory pressures during the first quarter, reducing warehousing costs.

Shareholders vote against the renumeration report

Another factor that could be weighing on the Kogan share price is news that shareholders have dealt the company a second strike after voting against the adoption of its renumeration report.

Under the second strike rule, if shareholders vote down a company’s executive remuneration package two years in a row, the board may be voted out of office. A total of 42.19% votes were cast against the report, similar to last year’s annual general meeting.

However, fortunately for the Kogan Board, shareholders decided against spilling the board, with 97.56% of votes cast against it. But clearly a warning shot has been fired in the direction of the Kogan board.

The Kogan share price is down 56% since the start of 2021.

The post Kogan (ASX:KGN) share price falls amid remuneration second strike appeared first on The Motley Fool Australia.

More reading

• Kogan (ASX:KGN) share price higher on trading update and 5-year growth plan
• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend
• 5 things to watch on the ASX 200 on Thursday
• Kogan shares or Temple & Webster? This expert has their say
• What are Kogan (ASX:KGN) shares really worth? Here’s what Scott Phillips says

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. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Ampol Ltd (ASX: ALD) share price is treading slightly lower during afternoon trade on Thursday. This comes after the fuel retailer announced a potential issue of subordinated notes as well as a property transaction.

At the time of writing, Ampol shares are fetching $30.25 apiece, down 1.27%. For comparison, the S&P/ASX 200 Index (ASX: XJO) is relatively flat at 7,402, edging 0.04% higher.

Ampol commences bookbuild process

Investors are sending the Ampol share price lower following the company’s decision to offload some of its assets.

In its release, Ampol advised it has entered into an arrangement to sell 20 freehold convenience retail sites.

The non-binding heads of agreement will see the transfer of petrol stations to an unlisted property trust. Ampol will own a 51% interest, while Charter Hall will take up the remaining 49% stake.

The deal is expected to deliver Ampol around $48 million in net proceeds, subject to binding commitments.

Once the transaction is completed, Ampol plans to begin leasing the sites under long-term triple net lease arrangements.

In addition, the company confirmed it has commenced a bookbuild process to issue subordinated notes in the wholesale fixed income market.

It intends to use the funds acquired from the sales and notes issue to help fund the purchase of Z Energy Ltd (ASX: ZEL). Furthermore, any monies left over will be allocated to general corporate purposes.

The property transaction is expected to be finalised sometime in the first quarter of 2022.

Ampol share price snapshot

Over the past 12 months, the Ampol share price has fallen by around 3%. Year-to-date, its shares have traversed the other way, up 6% for the period.

Based on today’s price, Ampol commands a market capitalisation of roughly $7.19 billion, and has approximately 238.30 million shares outstanding.

The post Here’s why the Ampol (ASX:ALD) share price is struggling today appeared first on The Motley Fool Australia.

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• 3 retail ASX shares to buy right now: experts
• Leading fund manager says these blue-chip ASX shares are buys right now
• ASX 200 (ASX:XJO) midday update: Incitec Pivot and Mesoblast jump, NAB drops
• Tritium is making news again, but do any ASX shares have exposure to EV charging stations?
• The top performing ASX 200 energy shares in October unmasked

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 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 Bruce Jackson.

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Shares in Whitehaven Coal Ltd (ASX: WHC) are inching higher in afternoon trade today and now fetch $2.575 apiece.

It’s been a gut-wrenching period of volatility for Whitehaven shareholders these last 2 months. After cruising to a high of $3.59 in early October, it’s been nothing but downward-sloping returns for the Whitehaven share price ever since.

The selling pressure has now levelled off, but shares are hovering at 3-month lows. However, the team at Morgan Stanley says investors are letting one crucial factor go unnoticed.

Let’s take a closer look at the situation.

What’s up with Whitehaven lately?

There hasn’t been too much out of Whitehaven’s camp of late. Investors began selling Whitehaven in droves alongside a large drop in thermal coal pricing from early October.

In a period of 2 weeks, coal prices fell at a rapid pace from a 12-month high of US$269.50/tonne in October to US$140.90/tonne by November amid production curbs in China.

Given that Whitehaven is an ASX resource company that produces coal, it is considered a price taker. Its share price is therefore sensitive to fluctuations in the coal markets, as it can impact earnings.

Whitehaven’s share price fell 40% amid the sinking coal price from October to November, which also fell 48% in around the same time.

GC Newcastle coal futures have recovered slightly towards US$160/tonne as we approach December, which might have saved Whitehaven’s share price somewhat.

What are investors missing?

Despite the pullback, analysts’ at Morgan Stanley reckon investors are overlooking a crucial factor in the coal giant’s investment case.

The firm notes that Whitehaven has benefitted in revenue and free cash flow from the rally in coal prices. This, the broker reckons, is helping Whitehaven reduce its debt at an accelerated pace. It notes that the miner is deleveraging its balance sheet at over 2x faster than it did during the last market upswing.

On valuation grounds, Morgan Stanley also notes Whitehaven is trading below its lowest forward multiple in 5-years, based on the broker’s FY22 earnings.

This disconnect in Whitehaven’s valuation and its rapidly declining debt figure is under-appreciated by the market and could be a positive catalyst, the broker says.

Despite the recent commitment of several nations to phase out coal power at the recent COP26 summit, Morgan Stanley thinks that Whitehaven’s share price is set to jump. It also thinks shareholders have some juicy dividends to look forward to from the company’s stronger balance sheet.

Whitehaven share price snapshot

Despite the recent headwinds, the Whitehaven share price is still up 66% in the past 12 months, after rallying another 57% this year to date.

In the past month, it has reversed course and lost 11%. However, investors appear to be catching the lows, and shares are now 5% in the green over this past week.

The post Morgan Stanley: don’t miss this with the Whitehaven (ASX:WHC) share price appeared first on The Motley Fool Australia.

More reading

• Why Webjet, Whispir, Whitehaven Coal, and Woodside shares are pushing higher
• ASX 200 coal shares unfazed by Johnson’s ‘death knell’ amid record prices
• Why BrainChip, HT&E, Platinum, and Whitehaven Coal are dropping
• Here’s why ASX 200 coal shares are in the spotlight today
• Why are ASX 200 resources shares booming again on Friday?

The author has no positions 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 Bruce Jackson.

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The market is bidding the Firefinch Ltd (ASX: FFX) share price lower after the company announced the completion of its heavily oversubscribed share purchase plan.

The company initially aimed to raise $25 million through the offering. However, it will instead accept all subscriptions ­– bringing in a total of approximately $51.36 million.

At the time of writing, the Firefinch share price is 64.2 cents, 8.94% lower than its previous close.

Let’s take a closer look at today’s news from the gold miner and lithium developer.

Firefinch share price tumbles on Thursday

Firefinch shareholders turned up in droves to take advantage of a share purchase plan offering Firefinch shares for 58 cents apiece.

The share purchase plan let existing shareholders bolster their portfolio by adding up to $30,000 worth of additional Firefinch shares without paying brokerage or transaction costs.

The 58-cent price tag represents a 17.7% discount on the Firefinch share price at yesterday’s close.

Though, when the capital raise was announced, it represented a 10.8% discount on the 5-day volume average weighted price.

According to the company’s managing director Dr Michael Anderson, approximately 40% of shareholders took up the opportunity.

“The demand reflects the strong outlook for the company and its terrific projects – Morila and Goulamina,” he said.

As a result, the company will issue more than 88.5 million new shares to subscribers tomorrow.

The funds raised will go towards ramp-up and development activities at the Morila Gold Project, the continuation of exploration, resource development, and expansion drilling at the Morila Super Pit, and the restart of drilling at the Goulamina Lithium Project. Any additional funds will become general working capital.

The Firefinch share price fell 6% the day the company announced the share purchase plan. However, it has gained 9% since then.

The company’s share price is also currently 240% higher than it was at the start of 2021.

The post Here’s why the Firefinch (ASX:FFX) share price is combusting today appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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