Category: Stock Market

All eyes will be on the City Chic Collective Ltd (ASX: CCX) share price today after the company reported its FY21 half-year result.

City Chic is a global retailer of plus-size apparel, footwear and accessories for women. It has websites and wholesale agreements for the northern hemisphere, with a large physical store network in Australia and New Zealand.

FY21 half-year highlights

City Chic reported that half-year sales increased by 13.5% to $119 million. It achieved comparable sales growth of 20.8% excluding Victorian store closures, or 12.7% including the store closures.

Online sales continue to grow strongly. Digital sales grew 42% and represented 73% of total sales. In FY20, online sales made up 65% of sales and in the first half of FY20 online sales were 53% of the total. US online sales contributed $45 million of sales, partly thanks to the Avenue acquisition.

There was also growth of its northern hemisphere business. Sales in the northern hemisphere made up 45% of total sales, up from 42% in FY20. However, wholesale and marketplace sales were down $6.4 million because of COVID-19 challenges for its US partners. The company also said that revenue was impacted by the strengthening of the Australian dollar as well as the closure of 14 stores in June 2020 due to some landlords wanting too much rent.

City Chic reported that its global customer base increased 56% year on year to 801,000 active customers.

The gross trading profit margin, excluding fulfilment costs, declined 70 basis points (0.70%) to 61.2% because of the shift in channel mix to online and full period contribute of the lower gross margin of the Avenue business.

The underlying cost of doing business reduced to 41.6% of sales, down from 43.7% last year. This was helped by a bigger contribution from the lower-costing online channel as well as cost management of head office and store costs.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 21.8% to $23.3 million. The EBITDA margin improved from 18.2% to 19.6%.

Statutory net profit after tax increased by 24.8% to $13.1 million. The normalised operating cash flow was $21.5 million, up 25.7%.

UK acquisition

City Chic completed the Evans acquisition on 23 December 2020, which it bought for £23.1 million. It has acquired the e-commerce and wholesale businesses. It’s a UK market leader in the plus-size apparel and footwear space. In the year to August 2020, it made £23 million of online sales whilst the wholesale business generated £3 million of sales.

The City Chic share price has risen more than 26% since announcing this acquisition. 

Financial position and dividend

City Chic said it had no debt at the end of the half-year, with $83 million of cash. It said it’s well positioned for further organic growth as well as acquisition opportunities.

Due to the potential opportunities to accelerate growth and COVID-19 uncertainty, City Chic’s board decided not to pay a dividend. It will review the idea of paying a dividend at the full year result.

FY21 outlook

In the first eight weeks of FY21, City Chic said that it has continued to deliver strong positive comparable sales growth.

It will continue to focus on growing its northern hemisphere businesses, particularly in the UK and Europe. The company also plans to introduce a conservative product for the Australia and New Zealand market.

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Motley Fool contributor Tristan Harrison 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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Simonds Group Ltd (ASX: SIO) shares will be on watch this morning following the release of the company’s first-half results late yesterday. At Tuesday’s market close, the Simonds share price finished the day flat at 63 cents.

Let’s take a look and see how the home builder performed for the period.

What could impact the Simonds share price today?

The Simonds share price could come under pressure today after the company reported a drop in its key business metrics.

In yesterday’s release, Simonds advised that revenue and earnings took a hit due to COVID-19 impacting trading conditions.

For the six months ending 31 December, Simonds delivered total revenue of $325 million, down 0.8% from the prior corresponding period. The slight fall was attributed to the effects of COVID-19 restrictions on site productivity. However, the company recorded 1,172 site starts, which was 29 starts above the comparative period in H1 FY20.

Although Simonds’ home results saw a 1.1% dip in revenue to $318.1 million, its education segment rose strongly to achieve growth of $5.7 million, up 22.8%. The sound performance was underpinned by the take up of a virtual classroom delivery model, growing 72% in the first half of FY21.

Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped to $14 million, a decline of 11.9% from this time last year. The company invested in new sales channels and increased its marketing spend which offset the additional margin obtained in H1 FY21.

The builder reported that net profit after tax (NPAT) from continuing operations sank to $1.9 million, shedding a mammoth 53.7% compared to the pcp.

The company generated net cash flows of $2.8 million, plunging 39.1% from H1 FY20. The poor result came from the ill timing of cash collections and payments.

Simonds closed the calendar year with a cash balance of $31.1 million. The group’s headroom stood at $56.1 million with undrawn facilities on hand to weather any future crisis.

In a move that could possibly weigh down the Simonds share price today, the board declared that no interim dividend will be paid to shareholders.

Management commentary

Simonds group CEO and managing director Rhett Simonds touched on the first-half results amid challenging COVID-19 trading conditions. He said:

The ability of our customers, staff, suppliers, and sub-contractors to adapt in these conditions has ensured the Group could continue to generate positive cashflows. We remain focused on improving and delivering sustainable operating performance through cost efficiency, increasing sales through our traditional display homes and expanding through digital channels, as well as investing in new business channels.

Our business, like many others across the housing sector, has benefitted from government stimulus and in particular the Federal Government’s HomeBuilder program. This has helped to mitigate the impact of the lockdowns initiated in each of the geographic areas the Group operates.

Outlook

Looking ahead to the current second-half, Simonds predicts COVID-19 to continue having an impact on its earnings. Government-mandated measures such as restrictions on access to sites and display centres as well as supply chain constraints are expected to remain.

The company noted that robust demand for the government’s HomeBuilder stimulus package may prolong build times and impact trade rates. Despite the volatility, the group is forecasting positive growth through to FY22.

Simonds share price snapshot

Over the last 12 months, the Simonds share price has gained 70% reflecting positive investor sentiment in the market. Simonds shares hit a low of 20 cents in March, before strongly rebounding to their current levels.

Based on the current share price, Simonds has a market capitalisation of around $90 million.

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Motley Fool contributor Aaron Teboneras 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 Costa Group Holdings Ltd (ASX: CGC) share price has been a very strong performer over the last 12 months.

Since this time in 2020, the horticulture company’s shares have risen a sizeable 48%.

Can the Costa share price go even higher?

The good news for investors is that the Costa share price has been tipped to go even higher from here.

According to a note out of Goldman Sachs this morning, the broker has upgraded the company’s shares to a buy rating and lifted the price target on them by a massive 55% to $5.35.

Based on the latest Costa share price, this price target implies potential upside of 21.6% excluding dividends.

And with Goldman forecasting a 2.8% fully franked dividend yield over the next 12 months, this potential return stretches to over 24%.

Why is Goldman Sachs bullish on Costa?

Goldman Sachs made the move due to the improved outlook across Costa’s key categories, more clarity on its growth projects, and its stronger balance sheet. It feels the latter is supportive of acquisitions and organic growth.

It commented: “We have upgraded our rating to Buy (previously Neutral). The following factors are driving our thinking: (1) the improved outlook across key categories; (2) better disclosure and renewed focus on planting growth projects; (3) a stronger balance sheet to support acquisitions and organic growth.”

“High density Avocado roll out; long cane strategy for raspberries and blackberries; China and Morocco planting programs; continued ramp up of Arana premium blueberry production; shift to higher margin pre-cut and packed mushroom lines; rebound in snacking tomato demand and pricing following COVID disruption; roll out of 3rd-party blueberry royalties with new South African region and continued growth in other key regions.”

Goldman Sachs expects the sum of the above to result in its earnings growing by a compound annual growth rate of 17% between FY 2020 to FY 2023.

In light of this growth profile, it feels its shares are good value at 22x estimated FY 2021 earnings.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. 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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If you’re looking for buy and hold options, then you might want to take a look at the mid cap space.

At this side of the market, there are a number of companies with the potential to grow materially over the next decade or two.

If these companies deliver on their potential, their shares could generate mouth-watering returns for investors.

With that in mind, here are two mid cap ASX shares to consider as buy and holds:

Adore Beauty Group Limited (ASX: ABY)

The first mid cap ASX share to consider is Adore Beauty. It is the country’s leading pureplay online beauty retailer. It aims to deliver users an empowering and engaging beauty shopping experience personalised to their needs.

This means that as well as being a place to buy beauty products, its website is also a destination for education and entertainment. As a result, beauty consumers frequent its website even when they are not seeking to purchase items.

This strategy is working wonders for Adore Beauty. This week it released its half year results and revealed an 82% increase in active customers to 777,000. From these customers, the company generated revenue of $96.2 million over the six months. This was an increase of 85% on the prior corresponding period.

Pleasingly, this is still only scratching at the surface of a growing Australian beauty and personal market currently worth ~$11 billion a year.

Analysts at Morgan Stanley currently have an overweight rating and $8.35 price target on the company’s shares. This compares to the latest Adore Beauty share price of $5.49.

Nuix Limited (ASX: NXL)

Another mid cap ASX share to consider as a buy and hold option is Nuix. It is a growing provider of investigative analytics and intelligence software.

Its Discover, Workstation, and Investigate platforms allow users to transform massive amounts of data from emails, social media, communications, and other human-generated content into actionable intelligence.

Given how much data people and businesses are generating today, it’s no surprise that demand for its offering is growing fast.

In fact, in FY 2020 the company reported an impressive 25.9% increase in total revenue to $175.9 million. Positively, this revenue is largely (~89%) from recurring subscriptions. This gives it a great base to build from.

Morgan Stanley is also a fan of Nuix. It currently has an overweight rating and $11.00 price target on the company’s shares. The broker feels the company is a structural growth story.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty 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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Accent Group Ltd (ASX: AX1) shares will be closely watched by investors today following the release of the company’s half-year financial results. At market close yesterday, the Accent share price finished the day down 3.4% to $2.26.

Let’s take a look at how the footwear retailer has been performing.

What could impact the Accent share price today?

It will be interesting to see where the Accent share price moves today after the group reported a positive set of numbers.

For the six months ending 27 December, Accent reported total sales of $541.3 million, reflecting a 6.6% increase on the prior corresponding period (pcp). This was primarily driven by the company-operated stores which contributed sales of $466.8 million, a 5.1% lift on the same period last year. Digital sales represented 22.3% of retail sales and grew by 110% to $108.1 million.

During the period, Accent opened a total of 50 new stores, and closed 5 existing stores where rent outcomes could not be settled. For the full-year, the company expects to open more than 90 stores across its umbrella of brands.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came to $138.4 million, a 29% jump over H1 FY20.

Net profit after tax (NPAT) surged to $52.8 million, up 57.3% over the comparable period. Accent noted that this is the seventh consecutive half-year of record profit.

The Accent share price will be in focus after the board declared a fully franked interim dividend of 8 cents per share to be paid to eligible shareholders on 18 March. The group amplified its interim dividend by 52.4% over H1 FY20’s payout of 5.25 cents.

Accent closed the calendar year with a healthy cash balance of around $72.8 million.

Words from the CEO

Accent Group CEO Daniel Agostinelli touched on the company’s performance, saying:

The Group’s unrelenting focus on VIP (our loyalty customers), Vertical and Virtual along with our integrated digital and store operating model has delivered another record profit driven through strong sales and gross profit margin.

The team continued to adapt and accelerate the business, delivering strong execution and sales through the key cyber events in November and the Christmas trading period.

Outlook

In the first 8 weeks of trading into the second half, Accent stated that like-for-like sales across its network have soared 10.7% over the pcp.

It recognised that the back-to-school market is extremely robust with its Athlete’s Foot brand achieving like-for-like sales up 20.4% in January alone. This result signified the company’s biggest trading month of the year.

Given the positive momentum, Accent cautioned investor expectations as the COVID-19 environment remains fluid. It said that it would not provide sales or profit guidance for the FY21 full year.

Accent share price snapshot

Since hitting a low of 55.5 cents in March last year, the Accent share price has rebounded strongly. Whilst Accent shares may only show a 20% gain on a 12-month historical chart, they have surged more than 300% from their March lows. 

Based on the current Accent share price, the company commands a market capitalisation of approximately $1.2 billion.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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 SEEK Limited (ASX: SEK) share price was out of form on Tuesday and sank 7%.

Investors were selling the job listings giant’s shares due to weakness in the tech sector and the shock revelation that its founder and CEO, Andrew Bassat, was stepping down.

Will the SEEK share price perform better today?

The SEEK share price could be given a boost today by news that it has finalised an agreement to sell down its stake in the China-based Zhaopin business.

According to the release, the company has entered into an agreement with a consortium of investors led by Primavera Capital Group.

Primavera is a leading China-based global investment firm, which will become Zhaopin’s largest shareholder. Following the completion of the sale, SEEK’s ownership will reduce from 61.1% to 23.5%.

The company expects to receive gross proceeds of ~A$697 million, which implies a Zhaopin valuation of ~A$2.2 billion.

Management advised that the sale is a continuation of SEEK’s strategy to manage its portfolio and create the right structure to support Zhaopin’s long-term growth aspirations.

What’s next?

When SEEK released its half year results yesterday, it decided against declaring an interim dividend.

However, in lieu of an interim dividend, the Board intends to declare and pay a dividend of ~20 cents per share following receipt of SEEK’s proceeds. The record and payment dates will be determined upon declaration of the dividend.

Management also notes that the sell down of Zhaopin will impact its ability to meet its $5 billion aspirational revenue target by FY 2025. Depending on completion, it could also impact its ability to achieve its FY 2021 guidance.

However, management notes that its long-term strategic drivers and substantial revenue opportunity remains intact regardless of the sale.

SEEK’s CEO and Co-Founder, Andrew Bassat, commented, “We are very proud of our journey with Zhaopin. When we first invested 15 years ago Zhaopin was a loss-making and distant number three player. Our long-term approach combined with the strong management team led by Evan Guo has transformed Zhaopin into a market leader across many key metrics and it now generates strong cash flows.”

“The Consortium will play an important role in helping Zhaopin to deliver on its long-term growth strategy.” “Through this transaction, SEEK has achieved a strong return of over 5x and we have rebalanced our portfolio weightings. This transaction also creates significant balance sheet flexibility to re-deploy capital into high returning initiatives across SEEK.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK 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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Exchange traded funds (ETFs) can be a fantastic way to balance out your portfolio.

This is because ETFs provide investors with easy access to a large and diverse group of shares that you wouldn’t usually have access to.

With that in mind, I have picked out two ETFs that are popular with investors right now. Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF to look at is the incredibly popular BetaShares NASDAQ 100 ETF. As you might have guessed from its name, this ETF gives investors exposure to 100 of the largest non-financial companies on the famous Nasdaq index.

This means that investors will be buying a slice of some of the world’s most well-known and highest quality companies. These include the likes of Amazon, Apple, Facebook, Microsoft, Netflix, Tesla, and Google parent, Alphabet.

In addition to this, the index includes a number of upcoming companies which could be the tech stars of the future.  

The BetaShares NASDAQ 100 ETF share price has generated a return of 17% over the last 12 months.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF to consider is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to 1,528 of the world’s largest listed companies from major developed countries.

Vanguard notes that it offers investors low-cost access to a broadly diversified range of securities that allows them to participate in the long-term growth potential of international economies outside Australia.

Among its largest holdings are the likes of Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The ETF also offers investors a source of income. At the last count, its units were providing investors with a 1.9% yield. While not the largest yield you’ll find, it is still significantly better than term deposits and savings accounts.

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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 BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and Vanguard MSCI Index International Shares ETF. 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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There are a number of software as a service (SaaS) ASX shares that could be worth considering as quality additions to a portfolio.

Businesses that provide software as a service to clients can usually rely on attractive, regular cashflow and high gross margins because of the software nature of the service.

These two companies could be ones to think about:

Class Ltd (ASX: ELO)

Class describes itself as the leading cloud-based SMSF administration software. It also has other services including Class Portfolio which can be used for investment portfolio accounting, administration and reporting. It also offers Class Trust, which is a service for accountants to automate significant parts of the trust administration process.

The company has also made acquisitions to provide different services including ReckonDocs, NowInfinity and Smartcorp. Management are pleased with the ReckonDocs acquisition because it provides Class with another high margin and customer acquisition business to further scale and grow revenues.

The SaaS ASX share recently announced its FY21 half-year result which revealed that revenue was up 27% to $25.9 million, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 29% to $10.4 million and the EBITDA margin was maintained at around 40%.

Class’ customer base increased by 183% to 4,456. The Class board decided to declare an interim dividend of 2.5 cents per share.  

The company also announced that one of its main clients, Findex, had signed up to use the NowInfinity documentation suite for its national accounting network. Findex uses Class’ SMSF, portfolio, NowInfinity trust register and corporate compliance software. It’s also the cornerstone pilot for Class Trust. Class said that Findex is an example of how the Class multi-product offerings are resonating with customers.

Broker Ord Minnett liked the ReckonDocs acquisition and the positive sign of Findex signing up to so many products.

The broker pointed out that Class only has a market share of around 10%, meaning it has a lot of potential growth. It also likes that Class has a very high client retention rate.

It has a share price target of $2.40 for Class.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and expense management provider. The company offers a combined platform of its different products to help organisations with their people, processes and pay. The ASX share operates on a SaaS model, receiving recurring revenue.

It recently announced its FY21 half-year result which showed that revenue was up 29.3% to $30.6 million, which was helped by annualised recurring revenue (ARR) rising by 42.8% to $74.2 million. Cash receipts for the period were up 25.5% to $34.4 million.

It made an EBITDA loss of $0.8 million, which was an improvement of $1.8 million compared to the prior corresponding period.

ELMO’s customer base continues to grow. Its mid-market customers total rose 95.7% to 2,892, whilst it finished the half with 7,146 Breathe small business customers. The mid-market gross profit margin increased to 88.5%, up from 84.6%. New customers purchased an average of four models.

Breathe is a business that it acquired in the UK to expand its growth potential in that market. Management believe that this acquisition places the company as the leading provider of HR solutions to small businesses in the region. It also acquired Webexpenses in the UK, which has a mid-market customer base. ELMO believes the small business market segment is a $2.2 billion opportunity.

The SaaS ASX share may be on the hunt for more acquisitions because it says it “remains well capitalised to fund growth initiatives.”

In FY21 it’s expecting ARR to finish between $81.5 million to $88.5 million. ELMO is expecting to generate $65 million to $71 million of revenue for the year, whilst an EBITDA loss of $2.4 million to $7.4 million is expected in FY21.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia owns shares of Class Limited. The Motley Fool Australia has recommended Elmo Software. 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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Are you looking to bolster your income portfolio with some quality ASX dividend shares? Then you might want to take a look at the ones listed below.

Here’s what you need to know about these ASX dividend shares:

Coles Group Ltd (ASX: COL)

The Coles share price has come under pressure since the release of its half year results this month. Although the supermarket giant delivered an impressive result, its outlook spooked the market. While the pullback is disappointing, it appears to have created a buying opportunity for income investors.

According to a note out of Goldman Sachs, in response to its results, its analysts have reaffirmed their buy rating but trimmed their price target slightly to $20.70. This is notably higher than the current Coles share price of $15.91.

In addition, Goldman is forecasting dividends of 62 cents per share in FY 2021 and 67 cents per share in FY 2022. If this proves accurate, income investors will receive fully franked 3.9% and 4.2% yields, respectively.

Super Retail Group Ltd (ASX: SUL)

Another company that delivered a strong half year result was Super Retail. The diversified retail group reported a 23% increase in sales to $1.78 billion and a massive 139% increase in underlying net profit after tax to $177.1 million. 

This strong result was driven by solid like for like sales growth across the company and supported by impressive online sales. The latter jumped 87% over the prior corresponding period to $237.4 million.

Positively, its outlook remains positive, particularly given the weak base the company is cycling through Easter and into May. This could mean a similarly strong full year result in August.

Goldman Sachs is a fan of the company and responded to its result by reiterating its buy rating and lifting its price target to $15.00. The broker is also forecasting a dividend of ~81 cents per share in FY 2021 (including a special dividend). Based on the current Super Retail share price, this represents a fully franked 6.9% yield.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) fought back from a tough start to record a strong gain. The benchmark index jumped 0.85% to 6,839.2 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to give back some of yesterday’s gains on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open 33 points or 0.5% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.2%, the S&P 500 is down 0.4%, and the Nasdaq index has sunk a further 1.4%. The latter could weigh heavily on local tech shares today.

Woolworths half year results

The Woolworths Group Ltd (ASX: WOW) share price will be one to watch today when it releases its highly anticipated half year results. According to a note out of Goldman Sachs, its analysts are forecasting total revenue of $35,789.7 million for the first half. This will be a 10.1% increase on the prior corresponding period. In respect to earnings, it is expecting a 5.3% increase in first half net profit to $1,030.2 million.

Oil prices mixed

Energy producers such as Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO) will be on watch today after a mixed night of trade for oil prices. According to Bloomberg, the WTI crude oil price is down slightly to US$61.66 a barrel and the Brent crude oil price is up 0.25% to US$65.40 a barrel. Oil prices are trading close to 52-week highs.

Blackmores results

The Blackmores Limited (ASX: BKL) share price could be on the move today when it hands in its half year report card. Due partly to weakness in the daigou channel, a soft result is expected from the health supplements company. Analysts at Goldman Sachs are forecasting a 7.9% increase in revenue to $318.2 million but flat earnings before interest and tax at $27.8 million. The broker is also expecting dividend payments to be resumed after a one-year hiatus. It is forecasting an interim dividend of 46.8 cents per share.

Gold price softens

It could be a tough day for gold miners including Resolute Mining Limited (ASX: RSG) and St Barbara Ltd (ASX: SBM) after the gold price softened. According to CNBC, the spot gold price has fallen 0.3% to US$1,803 an ounce. This may have been due to profit taking after a series of solid gains by the precious metal.

More reading

• ASX 200 goes higher, Afterpay sinks, Adbri impresses
• The Mercury NZ (ASX:MCY) share price zaps up. Here’s why
• ASX investors watch out for a rise in interest rates in 2022
• Here’s why Oil Search (ASX:OSH) just slashed its dividend
• Why the Austal (ASX:ASB) share price got torpedoed today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia owns shares of Woolworths 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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