Category: Stock Market

The S&P/ASX 300 Index (ASX: XKO) is advancing today, recovering from two consecutive days of losses after the earnings season wrap-up.

At the time of writing, the ASX 300 is up 0.5% to 7,528 points.

Let’s take a look at which ASX companies are making moves on the ASX 300 chart.

Paladin Energy Ltd (ASX: PDN)

It appears investors can’t get enough of Paladin shares, which are up 26% to a multi-year high of 80 cents. Paladin shares are now up 54% in the past week alone.

The uranium producer hasn’t released any news since its full-year results last Friday. However, in the report, Paladin noted that the Langer Heinrich Mine is progressing towards restarting production. In addition, the company is engaging with global nuclear energy utilities to secure long-term contracts.

It’s worth noting that the Paladin share price hasn’t reached this level since the middle of 2013.

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price is also pushing ahead on Friday, up 7.5% to $1 in early trade.

The emerging lithium producer released a presentation on its demerger with a subsidiary, Minerals 260. Liontown Resources will focus on developing its world-class Kathleen Valley Lithium Project, while Minerals 260 will concentrate on exploring the PGE-nickel-copper-gold system in the Julimar region.

Vulcan Energy Resources Ltd (ASX: VUL)

Another significant mover today is the Vulcan share price, up 7.2% to $14.40 just after noon on Friday.

The lithium developer provided the ASX with a corporate presentation today, highlighting its Zero Carbon Lithium strategy.

Vulcan recently entered into a 5-year strategic partnership and a binding lithium offtake term sheet with Renault Group.

Which ASX companies are heading the other way?

HomeCo Daily Needs REIT (ASX: HDN)

The HomeCo Daily Needs REIT share price is down 3.5% to $1.58. Investors are selling the property company’s shares despite no news being reported since its full-year results on 19 August.

A possible catalyst for the decline could be some profit-taking from investors. HomeCo Daily Needs REIT shares reached an all-time high of $1.65 yesterday.

Dicker Data Ltd (ASX: DDR)

Also being weighed down by investors today is the Dicker Data share price, down 2.7% to $13.69.

The IT distributors’ shares are taking a breather after accelerating 10% over the last two days. A number of directors recently bought more shares which led investors to jump on the bandwagon.

The post Which ASX shares are set to finish the week as the top movers on the ASX 300? appeared first on The Motley Fool Australia.

More reading

• Up 50% this week, the Paladin Energy (ASX:PDN) share price is booming. Here’s why.
• Here are the top 10 ASX 200 shares on Thursday
• Why Altium, Catapult, Dicker Data, & PolyNovo shares are charging higher
• Dicker Data (ASX:DDR) share price surges 5% as directors buy the dip
• Which ASX 300 shares are the biggest winners and losers on Thursday?

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. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to finish the week on a positive note. The benchmark index is currently up 0.5% to 7,521.9 points.

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

TechnologyOne’s UK acquisition

The TechnologyOne Ltd (ASX: TNE) share price has climbed to a record high today after announcing an acquisition. The enterprise software company has entered into an agreement to acquire Scientia Resource Management for 12 million pounds (A$22.4 million). Scientia is a United Kingdom-based technology company servicing the higher education sector.

Lithium miners charge higher

One area of the market performing particularly positively today is the lithium sector. The likes of Mineral Resources Limited (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS) are recording solid gains despite there being no news out either company. Investors appear increasingly bullish on the lithium sector due to rising demand for the battery making ingredient from the electric vehicle market.

Bendigo and Adelaide Bank shares fall

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is tumbling lower today. However, this has nothing to do with the regional bank’s performance. Instead, this decline has been driven by its shares going ex-dividend this morning. Eligible shareholders can now look forward to receiving its fully franked 26.5 cents per share final dividend on 30 September.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Mesoblast limited (ASX: MSB) share price with a 5.5% gain. Investors have been picking up shares after a sizeable decline in August. The worst performer has been the Bendigo and Adelaide Bank share price with a 3% decline after going ex-dividend this morning.

The post ASX 200 midday update: TechnologyOne hits record high, lithium miners rise appeared first on The Motley Fool Australia.

More reading

• What shares are moving the ASX 200 on Friday?
• The Pilbara Minerals (ASX:PLS) share price is up 5% on Friday
• Why the Mineral Resources (ASX:MIN) share price is lifting today
• How does the Mineral Resources (ASX:MIN) dividend compare to the materials sector?
• 3 reasons why Soul Patts (ASX:SOL) could be a great share to own

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has jumped out of the gate on Friday morning. This follows another strong session in US markets overnight. Clearly, the enthusiasm has tipped over into ASX shares this morning.

At the time of writing the benchmark index is trading 0.32% higher to 7,510 points.

Let’s look at what ASX 200 shares are making the biggest moves on the market.

ASX 200 shares on the move

Shareholders might have something to celebrate at the end of today, as the benchmark index moves higher. While there are still some companies lagging behind, most of the ASX 200 shares are pulling ahead on Friday.

Heading into lunch, miners and energy shares are making the biggest moves to the upside today. These include Whitehaven Coal Ltd (ASX: WHC), Santos Ltd (ASX: STO), Orocobre Limited (ASX: ORE), and Alumina Limited (ASX: AWC). Energy shares are getting a boost today after oil surpassed $70 a barrel for the first time in over a month.

Meanwhile, making the heftiest moves to the downside is information technology shares. These include Afterpay Ltd (ASX: APT), and Xero Limited (ASX: XRO) — falling 2.7% and 1.1% respectively. Additionally, Dicker Data Ltd (ASX: DDR) is taking a breather today after gaining more than 5% per day for the last two trading sessions. Shares in the wholesale computer products distributor are down 2.1%.

Here are the top 10 movers on the ASX 200 heading into lunch on Friday:

ASX-listed company	Share price	Price change
Iluka Resources Limited (ASX: ILU)	$10.22	4.93%
Orocobre Limited (ASX: ORE)	$9.54	4.26%
Whitehaven Coal Ltd (ASX: WHC)	$2.77	4.14%
Pilbara Minerals Ltd (ASX: PLS)	$2.30	4.07%
IDP Education Ltd (ASX: IEL)	$31.18	3.93%
TechnologyOne Ltd (ASX: TNE)	$10.46	3.26%
Zimplats Holdings Ltd (ASX: ZIM)	$23.98	2.96%
Alumina Limited (ASX: AWC)	$1.925	2.94%
OZ Minerals Limited (ASX: OZL)	$24.55	2.89%
Mineral Resources Limited (ASX: MIN)	$54.75	2.74%

What else is making news?

Whether in the biggest movers list or not, there are few notable announcements from ASX 200 constituents today.

Firstly, Technology One has announced an acquisition. According to the release, the enterprise software company expects to pay $22.4 million for Scientia Resource Management. The company to be acquired is a software business in the United Kingdom that services the higher education sector.

Secondly, Lendlease revealed that its Chief Executive Officer, Mr Tony Lombardo, will be appointed Managing Director. This arrangement will be effective from today.

The post What shares are moving the ASX 200 on Friday? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: TechnologyOne hits record high, lithium miners rise
• 3 reasons why Soul Patts (ASX:SOL) could be a great share to own
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most traded ASX 200 shares on Thursday
• ASX 200 down, Flight Centre rises, Redbubble falls

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. owns shares of and has recommended Idp Education Pty Ltd. 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 92 Energy Ltd (ASX: 92E) share price is surging on Friday after the company provided an update for its inaugural drilling program at the Gemini Project.

92 Energy is an Australian uranium exploration company searching for high-grade uranium in the Athabasca Basin, Saskatchewan, Canada. The company successfully listed on the ASX on 15 April, closing at 28.5 cents on the day.

At the time of writing, shares in the uranium explorer are up 43.55%, trading at 45 cents. Let’s take a closer look at the news out today.

92 Energy share price jumps on radioactivity intersection

92 Energy announced that its Drill Hole GEM-004 intersected a 5.3-metre interval of elevated radioactivity from 229.9 metres to 235.2 metres.

According to the company, the 5.3m interval averages 760 cps [counts per second]. It includes a 0.7m sub-interval of stronger radioactivity (>1,000 cps) from 234.3m to 235.0m that averages 1,500 cps.

“The elevated radioactivity is associated with a broad zone of moderate to strong clay, hematite and quartz alteration from 216m to 255m, all of which are commonly associated with uranium mineralisation at unconformity-related uranium deposits in the Athabasca Basin,” 92 Energy said.

Looking ahead, the company has paused its summer drilling program to allow for the collection and interpretation of drilling data.

The company said it expected the geochemical assay results within approximately 4 weeks. This could serve as a near-term catalyst for the 92 Energy share price.

In addition, the company will use this time to bolster radiometric safety protocols in anticipation of additional drilling within the area.

Uranium sector is booming

The uranium sector is surging with ASX-listed players such as Paladin Energy Ltd (ASX: PDN) and Deep Yellow Limited (ASX: DYL) rallying 50% and 34% in the past week.

This is off the back of uranium prices pushing to 6-year highs US$34.25/lb, according to Cameco.

The booming sector could be another factor driving the jump in the 92 Energy share price on Friday.

The post The 92 Energy (ASX: 92E) share price is rocketing 44% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: TechnologyOne hits record high, lithium miners rise
• What shares are moving the ASX 200 on Friday?
• Why the Metalstech (ASX:MTC) share price is rocketing 16% on Friday
• ClearView Wealth (ASX:CVW) share price surges 15% on strategic review
• Up 29% this week, the Boss Energy (ASX:BOE) share price is soaring again

Motley Fool contributor Kerry Sun 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 Metalstech Ltd (ASX: MTC) share price is soaring today after the company released an update on its lithium spin-out plans.

Metalstech has set a date for its shareholders to vote on the spin-out, which would see the company’s lithium assets held under Winsome Resources.

If passed, Metalstech shareholders will receive 1 Winsome share – worth 20 cents – for every 3.5 Metalstech shares in their portfolio.

Right now, the Metalstech share price is 28.5 cents, 16.33% higher than its previous close.

Let’s take a closer look at today’s news from the lithium, cobalt, and gold exploration company.

Shareholders to vote on lithium spin-out

The Metalstech share price is soaring today after the company announced more news of its planned lithium spin-out.

As part of the spin-out, the company will be giving its shareholders $9 million worth of Winsome shares for free.

Metalstech’s shareholders will receive a combined 45 million shares in Winsome.

Shareholders will have the opportunity to vote for or against the spin-out on 4 October. Metalstech has already received indications of support for the spin-out from its major shareholders.

It has previously announced $3 million of Winsome shares will be included in a cornerstone subscription by Lithium Royalty Corp.

Metalstech has also previously stated Winsome’s initial public offering (IPO) will be valued at between $12 million and $18 million.

Lithium Royalty Corp has also paid Metalstech $6.65 million for a gross revenue royalty over the Cancet, Adina, and Sirmac-Clapier lithium assets.

Metalstech share price snapshot

Today’s gains included, the Metalstech share price has soared around 45% since the start of 2021.

It is also about 60% higher than it was this time last year.

At its current share price, the company has a market capitalisation of around $49 million. It has approximately 158 million shares outstanding.

The post Why the Metalstech (ASX:MTC) share price is rocketing 16% on Friday appeared first on The Motley Fool Australia.

More reading

• Why the MetalsTech (ASX:MTC) share price is soaring 15% today

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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The ClearView Wealth Ltd (ASX: CVW) share price has bolted out of the gates this morning.

Shares in the insurance and wealth management company surged more than 15% higher in early trade and are currently up 14.26%, trading at 62 cents.

Let’s take a look at what ClearView announced.

Time for a strategic review

Investors have pushed the ClearView share price higher after the company announced its intentions to conduct a strategic review earlier today.

The company highlighted that FY21 has been a transformational year and the business has achieved a number of milestones.

Following an evaluation and discussion with the company’s largest shareholder, Crescent Capital Partners, the ClearView board decided to carry out the strategic review process.

ClearView said the review would focus on enhancing customer and policyholder outcomes.

The company also aims to achieve a long-term shareholding base, adding it would consider a change of control as part of the strategic review.

The company will continue to keep shareholders informed in accordance with its continuous disclosure obligations.

ClearView milestones for FY21

ClearView noted various milestones outlined in its full-year results for FY21 had put the company in a strong position.

These milestones include;

• Strong balance sheet and capital base with net cash and investments of $374m as at 30 June 2021
• Raising of $75 million of Tier 2 capital and completion of other capital management initiatives in FY21
• Solid business performance in FY21 in a challenging environment
• Declaration of a fully franked FY21 cash dividend of 1 cent per share
•  Commencement of multi-year life insurance transformation project.

ClearView share price snapshot

ClearView is a diversified financial services company that partners with financial advisers to help clients.

The company operates in 3 separate business segments: life insurance, wealth management and financial advice.

The ClearView share price has had a stellar year, soaring more than 50% since the start of 2021. The company’s shares are also up 76.29% over the past 12 months.

The post ClearView Wealth (ASX:CVW) share price surges 15% on strategic review appeared first on The Motley Fool Australia.

More reading

• Up 29% this week, the Boss Energy (ASX:BOE) share price is soaring again
• Here’s why the Nova Minerals (ASX:NVA) share price is up 13% on Friday
• What is the outlook for the Westpac (ASX:WBC) share price?
• AMA Group (ASX:AMA) share price drops 6% following media criticism
• The Pilbara Minerals (ASX:PLS) share price is up 5% on Friday

Motley Fool contributor Nikhil Gangaram 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 Boss Energy Ltd (ASX: BOE) share price is charging higher again today. Shares are currently trading at 22 cents, up 10% from yesterday’s closing price.

Below we take a look at what’s driving ASX investor interest in the uranium explorer.

What’s driving ASX investor interest?

There is no news out of the company today. However, the Boss Energy share price closed up more than 8% yesterday after the explorer reported on its plans to launch a seismic reflection program at its Honeymoon Uranium Project, located in South Australia.

Seismic surveying isn’t commonly used in the exploration of shallow minerals. Historically it’s been more the realm for crude oil exploration. But Boss says it will enable faster drilling, lower the environmental impact, and cut exploration costs.

Boss intends to survey 2 promising zones it previously identified in a drilling program with the intent to grow its uranium inventory.

With no new releases out of the company, it appears investor sentiment is still buoyed by the pending rollout of the modern seismic reflection system, and perhaps the fairly bullish outlook for uranium in a world looking to rapidly ween itself off fossil fuels.

Boss Energy share price snapshot

The Boss Energy share price has been a stellar performer in 2021, up 110%. That compares to a gain of 12% on the All Ordinaries Index (ASX: XAO).

Over the past month, Boss shares have gained 29%.

The post Up 29% this week, the Boss Energy (ASX:BOE) share price is soaring again appeared first on The Motley Fool Australia.

More reading

• Why the Boss Energy (ASX:BOE) share price is soaring 6% 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 Nova Minerals Ltd (ASX: NVA) share price has jumped out of the starting blocks in early trade on Friday.

Nova shares are now exchanging hands at 13 cents apiece, a 13% gain from the open.

What’s up with the Nova Minerals share price today?

The Nova Minerals share price is on the move after the company released a key announcement regarding its current infill drilling program.

The announcement expands on an update provided to investors on 1 September regarding the same infill program.

In Friday’s release, Nova advised it had confirmed the “continuity of mineralisation” within the “Korbel main resource” as a part of its flagship Estelle Gold project.

Nova explained that infill drilling at the site is “designed to prove up inferred resource” and also “extend strike length of resource”.

As a result of the drilling, Nova advised that the Korbel Feeder structure has “significant scale with high grade ‘blow out’ zones within the continuous mineralisation”.

Nova advised that “aggressive infill and extension drilling” is still ongoing at Korbel. The company is focused on the goal of “substantially increasing the 4.7 Moz resource” at the site to a size and confidence to “expedite feasibility studies”.

What did management say?

Speaking on the announcement, Nova CEO, Christopher Gerteisen said:

The infill diamond drilling at Korbel is showing strong support and confidence in the consistency and continuity of gold mineralisation in the Korbel’s large mineralised system. The significant intercepts we continue to intersect within the high-grade feeder zone are very encouraging indeed. We have almost 30 holes in the lab awaiting assays and with drilling ongoing at a fierce pace more results will continue to stream in every week.

Touching on the company’s growth vision, Gerteisen added:

Nova’s multi-pronged drilling strategy is designed to advance the Korbel Main deposit towards being a bankable project by 2023. We are focusing on proving up the resource to Indicated status, which can then translate into reserve ounces for our planned starter operation. At the same time, we are pushing forward the resource development program at the RPM prospect and unlocking the wider Estelle Gold District, with additional prospects rapidly coming on line. We aim to grow the global resource inventory and advance the Korbel project in parallel.

Nova Minerals share price snapshot

The Nova Minerals share price has had a choppy year to date, posting a loss of 19% since January 1. Despite this, Nova shares have climbed 88% into the green over the last 12 months.

This has outpaced the S&P/ASX 200 index (ASX: XJO)’s return of about 25% over the past year.

At the time of writing Nova Minerals has a market capitalisation of $193 million.

The post Here’s why the Nova Minerals (ASX:NVA) share price is up 13% on Friday appeared first on The Motley Fool Australia.

More reading

• Why the Nova Minerals (ASX:NVA) share price is down 19% in a month

The author Zach Bristow 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 Westpac Banking Corp (ASX: WBC) share price has had a fairly robust year so far in 2021.

Whereas the S&P/ASX 200 index (ASX: XJO) has climbed about 12.4% since 1 January, Westpac shares are more than 32% in the green.

So, what’s the outlook for the oldest of Australia’s big 4 banks?

Westpac has a market capitalisation of $95.8 billion and its share price has climbed a further 4.7% into the green over the past month.

Its shares did slide after the release of its third-quarter update back in August, however.

In the update, Westpac advised it had a CET 1 ratio of 12% on a pro forma basis, and that it is considering returning capital to shareholders as a result.

Despite this, the company also advised it was facing several upcoming headwinds.

For instance, Westpac stated it was facing net interest margin (NIM) pressures and forecasts its NIM for the second half of 2021 to come in lower versus the first half.

It also estimates that expenditures will be higher across the board in FY21 year over year.

Westpac also has a number of planned divestments set for the second half of 2021. These include the sale of Westpac LMI, Westpac Pacific, Motor Vehicle finance, and NZ Life Insurance.

Combined with the sale of General Insurance in July this year and Westpac Life Insurance in FY22, all transactions should deliver a 50 basis points “divestment benefit” to the company’s CET 1 ratio.

What else can be said for the outlook on Westpac shares?

Top brokers have also weighed in, and foresee more value in the Westpac share price. Leading broker Goldman Sachs recently retained its buy rating on Westpac shares and assigned a $29.03 price target.

Goldman likes the Westpac share price based on the company’s fundamentals and valuation. For instance, the investment bank sees the upcoming divestments as a way to release capital and bring operations “back towards Australia and New Zealand banking” — both positives in its eyes.

The broker’s words are echoed by analysts from Morgans, who have an add rating with a $29.50 price target on the Westpac share price. It also believes the company will reinstate its dividend.

The 4.7% gain in the Westpac share price over the past month compares favourably to the Commonwealth Bank of Australia (ASX: CBA) shares, down 0.19% and Australia and New Zealand Banking Group Limited (ASX: ANZ) shares, down 0.79%.

National Australia Bank Ltd. (ASX: NAB) is the leader amongst the big 4 over the past month, with an 8.12% gain. Macquarie Group Ltd (ASX: MQG) is also ahead, up 8.07%.

Foolish takeaway

The Westpac share price has posted a return of 47.5% over the past 12 months, which has outpaced the ASX 200’s gain of about 23%.

Although COVID-19 has plagued the Australian retail and commercial sectors, some experts say the Westpac share price may be set to deliver more gains yet.

It appears the company has made a number of capital budgeting decisions that may positively impact its share price over time, when the full effect of divestments and restructuring efforts are realised.

The post What is the outlook for the Westpac (ASX:WBC) share price? appeared first on The Motley Fool Australia.

More reading

• ASX 200 bank shares could struggle due to lockdowns – expert
• Here’s why the Westpac (ASX:WBC) share price is down in the last 3 months
• How does the NAB dividend compare to its sector?
• 2 buy-rated ASX dividend shares with big fully franked yields
• Australia’s rising delta recession risk could hit these ASX 200 shares badly

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and 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 AMA Group Ltd (ASX: AMA) share price is in the red today after the company knocked back media criticism.

AMA has acknowledged an unnamed media outlet’s claims its business is in dire straits by pointing to its current capital structure review.

The company hopes its review will help it beat a massive $99 million dint in its bottom line, caused by the impact of COVID-19 and reported on in the company’s financial year 2021 earnings report.

AMA’s response hasn’t seemed to quell the market. Right now, the AMA share price is 42 cents, 5.62% lower than its previous close.

Let’s take a closer look at today’s news that could be impacting the automotive smash repair and parts supplier’s shares.

What’s weighing on the AMA share price?

The AMA share price is tumbling after it rebutted media reports.

While the company acknowledged a publication had questioned its capital position, it only repeated news already published within its financial year 2021 report.

While AMA didn’t name the publication speculating on its finances, the Australian Financial Review (AFR) did report on them last night.

And it may be the AFR’s reporting that’s weighing on the AMA share price today.

Within the AFR’s article, it noted AMA needs to restructure its debt before the end of the year – as the company previously announced.

However, the AFR reported the company is strapped for cash, a claim AMA hit back against. The AFR also claimed AMA’s lenders are concerned with the company’s annual report.

AMA’s response to media speculation stated its banking syndicate is supportive of its business. It also noted AMA’s directors are confident the capital structure review will result in positive findings. It said:

While the business is experiencing COVID-19 related repair volume decreases, these impacts are being actively managed. With $64 million in cash as at 30 June 2021 and a low level of net debt versus normalised earnings (pre-COVID-19 effects), the company’s liquidity position remains strong. The group’s insurer partners remain supportive, and we look forward to returning to normal operations as restrictions ease.

Unfortunately, AMA reiterating its confidence hasn’t been enough to save its share price today.

The post AMA Group (ASX:AMA) share price drops 6% following media criticism appeared first on The Motley Fool Australia.

More reading

• What is the outlook for the Westpac (ASX:WBC) share price?
• The Pilbara Minerals (ASX:PLS) share price is up 5% on Friday
• Bellevue Gold (ASX:BGL) share price dives 8% after successful $106 million placement
• Here’s why the ASIA (ASX:ASIA) share price is up 4% in the last week
• Why the BWX (ASX:BWX) share price is moving higher today

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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