• Why Appen, Aussie Broadband, Core Lithium, and Westpac shares are dropping today

    A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,727.5 points.

    Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

    Appen Ltd (ASX: APX)

    The Appen share price is down 20% to 78 cents. Investors have been hitting the sell button today after the artificial intelligence data services company revealed that its takeover talks are over. Its suitor, Innodata Inc (NASDAQ: INOD), appears upset that news of its offer was leaked to the investment community. It told Appen that it was withdrawing the indicative proposal on the basis that it was intended to remain confidential.

    Aussie Broadband Ltd (ASX: ABB)

    The Aussie Broadband share price is down 17% to $3.58. This has been driven by news that its white label agreement with Origin Energy Ltd (ASX: ORG) has been terminated. Aussie Broadband revealed that the terms that Origin was seeking were not workable and wouldn’t have delivered value for shareholders.

    Core Lithium Ltd (ASX: CXO)

    The Core Lithium share price is down 4% to 19.2 cents. Investors have been selling the lithium miner’s shares since the release of its half-year results. Core Lithium reported revenue of $134.8 million and a loss after tax of $167.6 million. In response to the result, Citi has reaffirmed its sell rating with a reduced price target of just 11 cents.

    Westpac Banking Corp (ASX: WBC)

    The Westpac share price is down 3% to $26.57. This appears to have been driven by a broker note out of Macquarie this morning. Its analysts have called time on the banking sector rally and put the equivalent of sell ratings on all of the big four banks. Westpac is now rated as underperform with a $26.00 price target.

    The post Why Appen, Aussie Broadband, Core Lithium, and Westpac shares are dropping today appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen and Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why Arafura, Bubs, Clinuvel, and Superloop shares are racing higher today

    A man clenches his fists in excitement as gold coins fall from the sky.

    A man clenches his fists in excitement as gold coins fall from the sky.

    The S&P/ASX 200 Index (ASX: XJO) is having a subdued session on Thursday. In afternoon trade, the benchmark index is down 0.2% to 7,715.8 points.

    Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

    Arafura Rare Earths Ltd (ASX: ARU)

    The Arafura share price is up 56% to 23 cents. Investors have been buying this rare earths developer’s shares after it announced that the Commonwealth Government has conditionally approved a US$533 million debt finance package to support the Nolans Project in the Northern Territory.

    Bubs Australia Ltd (ASX: BUB)

    The Bubs share price is up 7.5% to 14.5 cents. This is despite there being no news out of the infant formula company. Though, it is worth highlighting that Bubs has reported two instances of insider buying this month from its CEO. In total, Bubs CEO Reg Weine has bought a total of 250,000 shares through on-market trades for an average of 12 cents per share.

    Clinuvel Pharmaceuticals Limited (ASX: CUV)

    The Clinuvel share price is up 10% to $14.59. This morning, this biopharmaceuticals company announced an on-market share buyback. Clinuvel will aim to buy back up to 1.5 million shares over the next 12 months, which equates to approximately 3% of its outstanding share capital. This reflects its view that the recent decline of market valuation is no longer commensurate with the performance and expected outlook for the company.

    Superloop Ltd (ASX: SLC)

    The Superloop share price is up 23% to $1.29. This follows news that the telco has won a major wholesale contract with Origin Energy Ltd (ASX: ORG). It is an exclusive six-year contract that will see the migration of Origin’s broadband customer accounts, currently 130,000, onto Superloop’s network. The transition of Origin’s current subscriber base is expected to occur during FY 2025.

    The post Why Arafura, Bubs, Clinuvel, and Superloop shares are racing higher today appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Insiders have been buying these ASX 300 shares this week

    Businessman looks with one eye through magnifying glass

    Businessman looks with one eye through magnifying glass

    It can be useful for investors to keep an eye on which ASX 300 shares have experienced meaningful insider buying.

    This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors.

    If they are buying, it suggests that they are confident in the direction the company is heading. After all, if they thought things were going badly, they wouldn’t be buying.

    With that in mind, listed below are a couple of ASX 300 shares that have reported meaningful insider buying recently. They are as follows:

    Dicker Data Ltd (ASX: DDR)

    This wholesale distributor has reported more insider buying this week.

    According to a change of director’s interest notice, the company’s chief operating officer Vladimir Mitnovetski has been topping up his holding. He bought 5,000 shares through an on-market trade on 11 March for an average of $10.70 per share. This equates to a total consideration of $53,500.

    Another notice reveals that its director Ian Welch snapped up 7,000 shares on the same day for a total consideration of $76,550. This equates to an average price of $10.94 per share.

    The Dicker Data share price is currently trading at $10.98.

    Evolution Mining Ltd (ASX: EVN)

    Another ASX 300 share that has reported some insider buying is gold miner Evolution Mining.

    A change of director’s interest notice reveals that its non-executive director Jason Attew bought 10,935 shares through an on-market trade on 11 March.

    Attew paid an average of $3.30 per share for this parcel of shares, which equates to a total consideration of $36,085.50.

    Investors can buy in at a similar price today. In afternoon trade, the Evolution Mining share price is trading at $3.38.

    The post Insiders have been buying these ASX 300 shares this week appeared first on The Motley Fool Australia.

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

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  • Why this ASX fund manager can’t stop buying Cettire shares

    Two happy shoppers looking at a smartphone together.

    Two happy shoppers looking at a smartphone together.

    Cettire Ltd (ASX: CTT) shares have certainly taken investors on a bit of a roller coaster in recent years.

    The swings and roundabouts of this ASX online luxury retail stock’s share price have become almost legendary on the stock market.

    After all, this is a company that rose more than 700% in 2021, only to drop more than 90% at one point in 2022.

    Its more recent share price performance has had a decidedly positive tilt though. Between 16 January and 16 February this year, Cettire shares have recorded an astonishing spike of more than 90%. This was spurred by an explosive earnings report that Cettire delivered on 7 February.

    But then, last week, we saw the company slump 6% after news that Cettire founder and CEO Dean Mintz sold $127 million worth of shares became public. Just two days later, the company crashed by 27% following a media report that alleged its pricing didn’t include hefty customs duties.

    However, following clarification from Cettire, its sales have begun to recover.

    In the past two trading days alone, Cettire has gained a rosy 3.8% or so.

    Perhaps news that a major ASX fund manager has piled into Cettire has boosted the company’s share price.

    ASX fund manager piles into Cettire shares

    Wilson Asset Management (WAM) is the fund manager behind popular listed investment companies (LICs) like WAM Capital Ltd (ASX: WAM).

    We already knew that at least one WAM LIC owned Cettire shares, thanks to updates from WAM Microcap Ltd (ASX: WMI).

    But according to a recent WAM webinar, the fund manager’s flagship WAM Capital LIC has also been piling in. Oberg did disclose that WAM funds had been selling Cettire shares following the company’s well-received earnings report last month.

    At the time these earnings came out, Cettire shares rocketed more than 40% at one point, which reportedly prompted WAM to begin selling off some shares.

    However, the fund managers changed their tune following the company’s subsequent share price dip.

    WAM Capital manager Oscar Oberg stated in the webinar that:

    When the article [regarding the customs duties] came out, we knew the stock was going to fall a lot… so we took the liberty to buy more stock, and we’ve been buying more stock every day since.

    So this effectively means that at least one WAM fund has been buying Cettire shares nonstop for over a week.

    No doubt WAM investors will be thankful that their manager has been ‘buying low’ and ‘selling high’. Let’s see if their conviction is rewarded going forward.

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

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  • Is the BHP share price now cheap enough to buy after falling 15% in 2024?

    Miner looking at a tablet.Miner looking at a tablet.

    The BHP Group Ltd (ASX: BHP) share price has gone backwards by 15% in 2024. After a difficult couple of months for the ASX mining share, is it time to buy?

    BHP has suffered from a falling iron ore price, as well as large one-off costs in its FY24 first-half result which included a write-down of its nickel assets, and more costs allocated for the Samarco disaster in Brazil.

    Is the BHP share price a buy?

    According to reporting by The Australian, the broker Citi has changed its rating on the ASX iron ore share to a buy, though its price target was unmoved at $46.

    A price target is where the broker thinks the share price will be in 12 months.

    At the current BHP share price – which is up more than 2% today at the time of writing – that would suggest a potential rise of close to 7% over the next 12 months. Any dividends paid would be a bonus on top of that.

    Citi analyst Paul McTaggart said that BHP “now looks cheap enough” based on normalised valuation multiples.

    The Australian reported McTaggart noted the enterprise value to earnings before interest, tax, depreciation and amortisation (EBITDA) ratio is 5 times, compared to the long-term average of 6.3 times. The price to cash flow ratio is 6.4 times, compared to the long-term average of 8 times.

    In other words, if we look back at history, BHP is looking materially cheaper than it has in the past, based on those two ratios.  

    However, at the same time, Citi didn’t say that BHP was the cheapest ASX iron ore share. McTaggart explained:

    We stay buy rated on Rio Tinto Ltd (ASX: RIO) and note it is still the cheapest of the large iron ore exposures with the highest mid-term production growth.

    Other valuation metrics

    According to the estimates on Commsec, the BHP share price is valued at 10 times FY24’s estimated earnings with a possible grossed-up dividend yield of 7.9% in FY24. We’ll have to see if Citi is right about the positive outlook for this ASX share over the next year.

    The post Is the BHP share price now cheap enough to buy after falling 15% in 2024? appeared first on The Motley Fool Australia.

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    Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Scott Phillips.

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  • DroneShield share price higher on major US government order

    A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.

    The DroneShield Ltd (ASX: DRO) share price is on the move again on Thursday.

    In morning trade, the counter drone technology company’s shares were up as much as 9% to 75.5 cents.

    However, its shares have since pulled back and are now trading only a touch higher.

    What’s going on with the DroneShield share price?

    Investors were bidding the company’s shares higher this morning after it announced another major contract win.

    According to the release, DroneShield has received a repeat order of $4.3 million from a U.S. Government customer for a number of its handheld C-UAS systems.

    The company is moving quickly and expects the delivery to be complete over the next 15 days, using available stock on hand.

    It highlights that it has been working with this customer for several years, with a number of smaller preceding orders. However, this is the first material contract from the customer.

    The even better news is that “subsequent material larger orders are expected in near term.”

    Though, the exact timing and quantum of future orders will be advised to market as further information becomes available.

    DroneShield’s US CEO, Matt McCrann, commented:

    DroneShield products have undergone extensive evaluations from a number of U.S. Government agencies in the last several years, and we’re honored by the customer relationship we have and pleased to start seeing the results of these efforts.

    In addition to market leading product performance, the ability for us to rapidly deliver DroneShield solutions was important to the customer. We’re proud to be able to do so in support of their urgent operational requirements, as drone threats continue to rapidly escalate.

    While this is great news, it seems that a touch of market volatility has started to overshadow it, causing the DroneShield share price to give back its gains.

    The post DroneShield share price higher on major US government order appeared first on The Motley Fool Australia.

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

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  • How much could a $300,000 ASX share portfolio pay in dividends?

    Man looking amazed holding $50 Australian notes, representing ASX dividends.

    Man looking amazed holding $50 Australian notes, representing ASX dividends.

    The ASX isn’t only a great place to grow your wealth, but also somewhere you can use your wealth to generate huge passive income from dividends.

    But just how much income could you receive from a portfolio? Let’s take a look and see what could be possible from a $300,000 investment portfolio.

    Wealth generation

    Firstly, if you’re lucky enough to already have a portfolio valued at $300,000, you can skip this section.

    But if you don’t, let’s quickly look at how you could potentially get there.

    It’s worth noting that how long it takes will depend upon your starting balance, how much you can invest, and the performance of ASX shares.

    Over the last few decades, ASX shares have generated an average return of approximately 10% per annum including dividends.

    There’s no guarantee that this will be the case in the future, but as it is in line with long-term averages on Wall Street, we’re going to assume that this trend continues for the purpose of our calculations.

    If you can afford to invest $12,000 a year into ASX shares and earn the market return (and reinvest your dividends), you will get to the $300,000 mark after just over 12 years. Investing less (or more) will alter the timeline.

    ASX dividends from $300,000

    Now we’re all on the same page, let’s move onto the next step.

    Investors have a few options with their portfolio. They can settle for the average dividend yield of the ASX, which is normally around 4%, or they can focus on high yield ASX shares.

    If you go for the standard 4% dividend yield, you can expect to receive $12,000 of dividends from your ASX shares.

    But if you focus on high yield ASX shares you can generate even more income.

    High yield options

    One easy way to do this is the Vanguard Australian Shares High Yield ETF (ASX: VHY). It gives you exposure to a portfolio filled with many of the biggest payers on the Australian share market.

    This includes BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Fortescue Ltd (ASX: FMG), and Transurban Group (ASX: TCL).

    At present, it trades with a dividend yield of 5.1%. This means that a $300,000 investment portfolio would produce $15,300 of income.

    But it isn’t likely to stop there. Over the last five years, the ETF has gained 25% excluding dividends. If it did the same in the future, your $300,000 portfolio would grow to be worth $375,000.

    And earning a 5.1% dividend yield on that amount would mean annual dividend income of $19,125.

    The post How much could a $300,000 ASX share portfolio pay in dividends? appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why are Superloop shares jumping 34% and Aussie Broadband shares sinking 25%?

    a close up picture of a man's face with an expression of dumbfounded surprise as he holds his hand to his chin as if thinking further about what has just been revealed to him.

    a close up picture of a man's face with an expression of dumbfounded surprise as he holds his hand to his chin as if thinking further about what has just been revealed to him.

    There’s been some big moves in the telco industry on Thursday.

    This will either be good news of bad news depending on whether you own Superloop Ltd (ASX: SLC)  or Aussie Broadband Ltd (ASX: ABB) shares. That’s because they are heading in very different directions.

    In early trade, the Aussie Broadband share price is down 25% to $3.24. Whereas the Superloop share price is up 34% to a 52-week high of $1.41 this morning.

    And the company to thank (or blame) for these big moves is Origin Energy Ltd (ASX: ORG).

    What’s going on with Aussie Broadband and Superloop shares?

    As readers may be aware, Origin has been offering broadband services for a few years.

    It has been doing this through a white label agreement with Aussie Broadband. However, Origin has terminated the white label wholesale agreement effective 12 April 2024.

    Aussie Broadband estimates that the agreement will contribute $14 million to EBITDA in FY 2024 despite ending before the end of the financial year. So, this does create a bit of a dent in the company’s earnings.

    Management notes that the two parties had been in discussions about a new deal, but it would have generated less earnings in the future.

    Superloop seals deal

    Superloop shares are rallying today after it secured the wholesale agreement with Origin.

    It is an exclusive six-year wholesale contract which will see the migration of Origin’s broadband customer accounts, currently 130,000 and growing, onto Superloop’s network. The transition of Origin’s current subscriber base is expected to occur during FY 2025.

    The contract is expected to add in excess of $19 million of annualised EBITDA once the current subscriber base is fully transitioned, with further upside based on Origin’s rapidly growing broadband customer base.

    Origin issued shares

    As part of the deal, Superloop is issuing Origin a large number of shares in the company. It has issued 9,847,690 Superloop shares upfront on signing.

    It will then issue another 9,847,690 shares on the completion of the migration of 130,000 customers, and up to another $30 million of Superloop shares subject to achieving further customer growth milestones. It has also granted 55,672,002 options upfront on signing.

    Superloop CEO, Paul Tyler, said:

    Securing the Origin contract is a key progress milestone in Superloop’s three-year growth strategy. It delivers a step-change in our customer numbers and cements our market position as a leading wholesale broadband and backhaul provider. In order to create strong alignment and pursue growth in broadband customers, we are delighted to welcome Origin as a shareholder and to issue it an option to acquire further shares.

    Finally, in other news, Superloop has upgraded its EBITDA guidance for FY 2024 to $51 million to $53 million (from $49 million to $53 million).

    The post Why are Superloop shares jumping 34% and Aussie Broadband shares sinking 25%? appeared first on The Motley Fool Australia.

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

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  • 1 Wall Street analyst thinks Tesla stock is going to $125. Is it a sell?

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

    A woman in jeans and a casual jumper leans on her car and looks seriously at her mobile phone while her vehicle is charged at an electic vehicle recharging station.

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

    Tesla (NASDAQ: TSLA) did its part in the “Magnificent Seven” in 2023, playing an outsized role along with the other six stocks in driving the market higher. In 2024, its role appears much diminished as the stock is down. It might have even further to fall in the near term as sentiment about Tesla is turning negative. Wells Fargo analyst Colin Langan recently downgraded the stock to the equivalent of a sell rating and cut his firm’s price target to $125.

    Langan previously had a hold rating on Tesla with a price target of $200 per share. Tesla shares have already dropped roughly 30% in 2024 as lagging demand and competition for electric vehicle (EV) buyers have eroded profits.

    Is it time to sell Tesla?

    If Langan is right, Tesla shares will reach a level last seen in January 2023. While Tesla continued to ramp up production and sales during 2023, it was also a year of rising competition. That led to price reductions on its electric cars to help spur sales. The result was higher revenue as volume grew compared to 2022, but lower profit margin and free cash flow.

    Langan and his team think that trend will continue in 2024. In a note to clients, he wrote “We expect volume to disappoint as price cuts are having a diminishing impact on demand.” He believes the result will be lower-than-expected vehicle deliveries and sees 2024 net earnings coming in more than 30% below current analyst estimates.

    Most notable is the fact that the analyst now sees vehicle delivery volume flat in 2024 versus 2023. Tesla delivered about 1.8 million EVs last year. Langan also projects that level will remain the same for 2025 as well.

    If those projections turn out to be accurate, it’s likely that he will be proven right that Tesla stock can drop another 28% from its current level. 

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

    The post 1 Wall Street analyst thinks Tesla stock is going to $125. Is it a sell? appeared first on The Motley Fool Australia.

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    Howard Smith has positions in Tesla. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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  • Appen shares plunges 17% after takeover collapse

    A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.

    A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.

    Appen Ltd (ASX: APX) shares have been on a rollercoaster ride this week.

    Speculation that the artificial intelligence (AI) data services company was a takeover target caused its shares to rocket on Tuesday.

    But then news that the non-binding takeover offer on the table from Innodata Inc (NASDAQ: INOD) was significantly less than expected caused Appen’s shares to crash back down to Earth.

    Unfortunately, this decline has continued on Thursday after the company released a further update on the takeover proposal.

    In early trade, the Appen share price is down 17% to 80 cents.

    Appen shares sink on takeover update

    As you might have guessed from the share price reaction, this update is not a good one.

    According to the release, Appen has been informed that Innodata has walked away from talks and withdrawn its offer for the company.

    Innodata appears upset that news of its offer was leaked to the investment community.

    It informed Appen that it was withdrawing the indicative proposal on the basis that it was intended to remain confidential.

    It is also worth noting that investors in the United States didn’t respond positively to news of the offer. Innodata’s shares on the Nasdaq index crashed 16% the day the proposal was made public.

    They didn’t appear to believe that acquiring a company going through such a difficult period would be a smart move by management. Particularly given that Innodata is still operating at a loss.

    What now?

    With these takeover talks over, Appen will go back to focusing on its turnaround.

    It has advised that it will continue to update shareholders in accordance with its continuous disclosure obligations.

    Appen shares are down by 67% over the last 12 months.

    The post Appen shares plunges 17% after takeover collapse appeared first on The Motley Fool Australia.

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

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