The S&P/ASX 200 Index (ASX: XJO) is having another underwhelming session on Wednesday. In late trade, the benchmark index is down 0.2% to 7,247.2 points.

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

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is up 6% to $8.82. This follows the release of the computer hardware and software distributor’s first-quarter update. For the three months ended 31 March, Dicker Data delivered a 14.7% increase in total revenue to $772.3 million and 6.7% lift in net profit before tax to $25.4 million.

Ioneer Ltd (ASX: INR)

The Ioneer share price is up 8.5% to 38.5 cents. This morning, this emerging lithium-boron producer announced a commercial offtake agreement partnership with Dragonfly Energy Holdings Corp (NASDAQ: DFLI). The agreement between the two Nevada-based companies is expected to provide Dragonfly with a domestic supply of lithium carbonate, a critical component in lithium iron phosphate battery cells.

Monadelphous Group Ltd (ASX: MND)

The Monadelphous share price is up 3% to $13.27. This appears to have been driven partly by a reasonably positive broker note out of Citi. According to the note, the broker has taken its sell rating off the engineering company’s shares and upgraded them to a neutral rating with an improved price target of $12.80.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is up 8.5% to $7.57. This is despite there being no news out of the semiconductor company. This appears to have been driven by day traders and message board hype. Time will tell if Weebit Nano is yet another meme stock that investors eventually get burned with, but I wouldn’t bet against that happening.

The post Why Dicker Data, Ioneer, Monadelphous, and Weebit Nano shares are rising appeared first on The Motley Fool Australia.

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More reading

• Here’s why this ASX tech share is storming 6% higher on Wednesday
• These ASX income shares have very big forecast dividend yields
• 3 ASX lithium shares to buy right now: Wilsons
• 3 ASX 300 shares being bought up by insiders
• Brokers say buy these ASX dividend stocks for their big fully franked yields

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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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 0.2% to 7,251.1 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 27% to $2.33. Investors have been hitting the sell button in a panic after the artificial intelligence data services company released another disastrous update. For the first four months of FY 2023, Appen revealed that its revenue was down 21.4% to US$95.7 million and its constant currency underlying EBITDA was negative US$12.4 million. The latter compares to positive EBITDA of $7.9 million a year earlier.

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is down 4.5% to $5.64. This has been driven by the regional bank’s shares trading ex-dividend this morning for its interim dividend. Eligible shareholders can now look forward to being paid this fully franked 20 cents per share dividend on 1 June.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 4% to $4.29 despite there being no news out of the struggling online retailer. However, it is worth noting that Kogan was recently named among a group of companies that Jarden thinks could suffer from Amazon’s rampant rise in Australia.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down 9% to $3.74. This follows the release of an investor update this morning. Management warned that it now expects its key Nextstellis product to achieve its breakeven weekly run rate in the United States in the first half of 2024. However, it was pleased with the performance of the whole portfolio, which it notes is delivering steady revenue growth and positive contribution margin.

The post Why Appen, Bank of Queensland, Kogan, and Mayne Pharma shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Are Appen shares finally cheap enough to buy following today’s nosedive?
• Liontown share price cracks yet another all-time high on Wednesday
• Top broker tips 7 ASX 200 property-related shares to cash in on the 2023 budget
• ASX 200 stock Technology One halted following cyber attack

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 and Kogan.com. The Motley Fool Australia has positions in and has recommended Kogan.com. 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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Sadly, it’s been another red day for the S&P/ASX 200 Index (ASX: XJO) so far this Wednesday, albeit a mild one. Following yesterday’s loss, the ASX 200 has slipped again today, with the index currently down by 0.23%, putting it at just under 7,250 points. 

Let’s now delve deeper into this anaemic performance by checking out the ASX 200 shares that are topping the share market’s trading volume charts at present, according to investing.com. 

The 3 most traded ASX 200 shares by volume this Wednesday

Appen Ltd (ASX: APX)

First up today is ASX 200 tech stock Appen. So far this Wednesday, a decent 13.44 million Appen shares have been exchanged on the ASX. Unfortunately for investors, this volume is almost certainly a result of the devastating 26% loss the company is nursing right now.

Yep, Appen shares closed at $3.19 yesterday, but are currently down to $2.36. This follows the company releasing a trading update. This revealed the company has recorded a drop in revenues of 21.4% over the first four months of FY2023, as well as a 24.7% slide in gross profits.

Pilbara Minerals Ltd (ASX: PLS)

Next up, we have ASX 200 lithium share Pilbara Minerals to check out. A hefty 14.58 million Pilbara shares have been bought and sold so far this session. We haven’t had any fresh news out of Pilbara today that might explain this volume.

So it’s probably a result of the company’s share price movements themselves. Pilbara is indeed having a tough one today. While not as devastating as the Appen experience, this lithium leader has still shed a notable 2.24% so far today, putting Pilbara down to $4.58 a share.

Paladin Energy Ltd (ASX: PDN)

Last, but certainly not least in terms of trading volumes, we have ASX 200 uranium share Paladin Energy to consider. In this case, it seems another large share price movement is responsible for this elevated volume – some 20.35 million shares thus far. But luckily for Paladin shareholders, it is one going in the opposite direction to Pilbara and Appen. The Paladin share price is on fire today, currently up by almost 8% at 71 cents a share.

That’s despite no news out of this company today either. However, investors seem to have been flooding into this company for the past week, following the release of a corporate presentation back on 4 May. Since then, Paladin has gained more than 14%.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Are Appen shares finally cheap enough to buy following today’s nosedive?
• Liontown share price cracks yet another all-time high on Wednesday
• Top broker tips 7 ASX 200 property-related shares to cash in on the 2023 budget
• ASX 200 stock Technology One halted following cyber attack
• Appen share price crashes 22% amid ‘materially’ declining revenue

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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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The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price reached a new 52-week high earlier today, going above $32 and hitting $32.08.

Investment conglomerate is known for owning a large portfolio of different assets including small-cap ASX shares, blue-chip ASX shares, property, debt, private businesses and a portfolio of shares where it owns large stakes.

It’s those large stakes that could be a key driver of the Soul Pattinson share price rising by 15% since 20 March 2023.

Investments increase

Some of Soul Pattinson’s biggest investments include its 12.8% stake in telecommunications provider TPG Telecom Ltd (ASX: TPG) and the 43.1% it owns in building products business Brickworks Limited (ASX: BKW).

Since 6 April 2023, the Brickworks share price has gone up by 9.5%.

From 28 March 2023 to now, the TPG share price has risen by 18%.

These were two of the three biggest investments within the Soul Pattinson portfolio at 31 January 2023.

Some of its other largest investments have risen over the last month or two. For example, the Tuas Ltd (ASX: TUA) share price has gone up by around 40% since 20 March 2023, the Macquarie Group Ltd (ASX: MQG) share price has risen by 6.25% since 27 March 2023 and the CSL Limited (ASX: CSL) share price has gone up 8.9% from 14 March 2023.

The Soul Pattinson share price can benefit from these gains because it increases the underlying portfolio value.

The business said that it had a total net asset value (NAV), pre-tax, of $10.5 billion at 31 January 2023. The NAV could have risen further since then.

What next for the Soul Pattinson share price?

The performance of Soul Pattinson shares could come down to a mixture of how the underlying NAV performs and what investors are willing to pay for that NAV.

When the investment business released its FY23 half-year result, it said that in February 2023, the total portfolio outperformed the All Ordinaries Accumulation Index (ASX: XAOA) as its defensive portfolio settings “gain traction” in the current market.

It noted it has “strong” cash reserves and an active pipeline of investments under consideration. The business is looking to deploy that money into “robust, defensible models and uncorrelated assets.” The company believes that having a long-term view assists in investing through market volatility.

Soul Pattinson share price snapshot

Since the start of 2023, Soul Pattinson shares have risen by around 18%.

The post Why did the Washington H Soul Pattinson share price just smash a new 52-week high? appeared first on The Motley Fool Australia.

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• How my ASX share portfolio is ready for a stock market crash
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• Worried about the market? 2 ASX dividend stocks that could help you sleep at night

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, CSL, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Macquarie Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Tpg Telecom. 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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Appen Ltd (ASX: APX) shares had been strongly outperforming in 2023.

Right up until market open this morning.

At yesterday’s close, shares in the artificial intelligence (AI) data services company had gained an impressive 31% year to date.

That strong four-month run for Appen shares came to an end following the release of the company’s trading update.

Appen shares have tumbled 25.08% today on those results, leaving the stock essentially flat in 2023.

Why are Appen shares tumbling on the trading update?

The AI stock enjoyed five years of phenomenal growth after listing on the ASX in January 2015.

Early investors who sold at the 21 August 2020 highs of $40.08 per share will have booked gains of 6,500%, or more.

ASX investors who bought Appen shares at those highs are today nursing losses of 94%.

While things were looking up for the tech stock over recent months amid the emergence of ChatGPT, that hype hasn’t shown up in the past four months’ financials.

Appen reported a 21.4% year-on-year decrease in revenue, which dipped to $96 million. That saw gross profits drop 24.7% to $36 million.

And underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) in constant currency terms went from $8 million in the prior corresponding to period to a loss of $12 million in the first four months of 2023.

As you’d expect, Appen is looking to cut costs where it can. The company reported its previously identified cost savings of some US$10 million will be achieved in FY23.

Management also indicated “a series of significant measures” to achieve an additional US$36 million of cost savings would be achieved over the course of the financial year.

With those measures in mind, and Appen shares down more than 25% today, is the AI stock finally cheap enough to buy?

A bargain or a falling knife?

For some greater insight into that question, we defer to the analysts at Wilsons (courtesy of The Australian).

With Appen’s operating costs increasing faster than its revenue growth in 2021, Wilsons supported the cost savings measures.

But the analysts noted this may leave the door open for the competition.

According to Wilsons:

We remain cautious however on whether this cost out program will result in a further deterioration in sales or underinvestment in its technology/product offering leading to a catch-up from competitors.

Wilsons now has an underweight rating on Appen shares with a $2.11 price target.

That implies an 11.7% downside to the current price of $2.39 per share.

The post Are Appen shares finally cheap enough to buy following today’s nosedive? appeared first on The Motley Fool Australia.

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• Appen share price crashes 22% amid ‘materially’ declining revenue
• Why Appen, Megaport, Mirvac, and Pilbara Minerals shares are pushing higher today
• Down 60% in a year, are Appen shares a bargain buy?

Motley Fool contributor Bernd Struben 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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The share price of S&P/ASX 200 Index (ASX: XJO) lithium favourite Liontown Resources Ltd (ASX: LTR) is soaring once more on Wednesday, leaping to hit yet another record high.

The stock peaked at $2.97 earlier in today’s session, marking a 3.48% improvement on its previous close.

Though, it hasn’t managed to hold onto its gains. Right now, the Liontown share price is $2.91, 1.39% higher than it was at the end of Tuesday’s session.

For comparison, the ASX 200 has slumped 0.31% at the time of writing.

It marks the third time this month the company’s stock has posted an all-time high. So, what’s been going right for the ASX 200 lithium share? Let’s take a look.

What’s been going right for the Liontown share price?

It’s been an exciting few months for Liontown in many respects. The company has made strides with its flagship Kathleen Valley lithium project and batted away a takeover bid from industry giant Albemarle.

On the former, the company announced it had kicked off open pit mining at the project in February, catapulting it from explorer to miner.

Construction at the project has since continued, with first production on track for mid-2024.

The milestone might have enticed lithium giant Albemarle to throw a $2.50 per share takeover bid at Liontown in late March. The ASX 200 company, however, wasn’t playing ball.

It rejected the offer and the market catapulted its share price a whopping 67% in response.

The stock was boosted once more last week when the company shut down rumours it had been approached with a new takeover offer.  

It’s also worth noting that shorting of Liontown shares has reduced dramatically in recent months. After peaking at 9.1% in March, the stock’s short interest has plunged to 5% at last count.

And it’s little wonder why. The Liontown share price has more than doubled since the start of this year, having risen 137% year to date. That likely dinted the wallets of some short sellers.

Meanwhile, the ASX 200 has gained 4% since the start of 2023.

The post Liontown share price cracks yet another all-time high on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Top broker tips 7 ASX 200 property-related shares to cash in on the 2023 budget
• ASX 200 stock Technology One halted following cyber attack
• Keen for $1,000 of monthly passive income? Buy 38,462 shares of this ASX 200 stock
• 3 ASX 200 building shares that could rise now that house prices have bottomed
• 5 things to watch on the ASX 200 on Wednesday

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

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The Vanguard Australian Shares Index ETF (ASX: VAS) is a popular investment on the ASX. So popular in fact, that it is the largest exchange-traded fund (ETF) on the ASX by funds under management.

ASX investors typically choose the VAS ETF for its broad exposure to the share market, with its portfolio of the 300 largest publically-traded Australian shares.

But for eagle-eyed investors, something might seem amiss when looking at the VAS share price.

This ETF is still trading under its pre-COVID high. Back in February 2020, VAS hit $90.55 a unit. Today, this ETF is currently trading at $90.31. So it doesn’t look like this ETF has gone anywhere in more than three years: 

That might be a little disappointing, seeing as investors typically choose to invest in an index fund like the Vanguard Australian Shares ETF in order to snag a real return on their money that exceeds what they might get at a bank.

So why is this ETF still where it was more than three years ago?

Why is the VAS share price where it was three years ago?

Well, the answer is a little more complex than it might seem. In the simplest terms, VAS’s ASX units are where they were in February 2020 because the index that the ETF tracks, the S&P/ASX 300 Index (ASX: XKO), is around that same level as well

Of course, both the VAS ETF and the ASX 300 have had a very volatile few years between 2020 and 2023, mostly thanks to the 2020 COVID crash.

But comparing where the Vanguard Australian Shares ETF was in February 2020 and where it is today is not capturing the entire picture. It has not been a zero-sum game for investors of this ETF over the past three and a bit years at all. In fact, in the three years to 28 February 2023, investors enjoyed an average annual gain of 8% from this ETF.

How does that work, if the VAS unit price barely changed over those three years? The answer is dividends.

Because the Vanguard Australian Shares ETF holds 300 ASX shares within its portfolio, it receives any dividends that these shares payout. The ETF then passes through these dividends to its investors in the form of quarterly distributions.

In the 2020 calendar year, investors in the fund received a total of $1.88 in dividend distributions per unit. In 2021, it was $3.43 per unit, which rose to $6.36 in 2022.

So that’s where the approximate 8% per annum return that this ETF’s investors have enjoyed over the past three years or so has come from. When it comes to ASX ETFs like VAS, this just goes to show how important dividend returns are for investors.

The post Why is the Vanguard Australian Shares Index ETF (VAS) still below its pre-COVID high? appeared first on The Motley Fool Australia.

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• Better investment: Vanguard Australian Shares ETF (VAS) or a term deposit?
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• 5 dividend shares I think are among the safest on the ASX
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Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The 2023 federal budget is in.

Among the key measures, Treasurer Jim Chalmers unveiled $14.6 billion in spending to assist households and small businesses with cost of living increases.

Millions of largely lower-income Aussies stand to benefit from that part of the 2023 federal budget.

Among the policies, there is a $40 fortnightly boost to JobSeeker, Youth Allowance, and Austudy, as well as $500 of rebates to five million low-income households as part of the $1.5 billion Energy Relief Fund.

However, more stimulus spending from the 2023 federal budget isn’t going to help Australia tamp down its stubbornly high inflation.

Which means the odds of yet another interest rate increase from the Reserve Bank of Australia (RBA) have just gotten a lot higher.

ASX 200 shares could face renewed pressure in June

That’s something to keep an eye on when investing in S&P/ASX 200 Index (ASX: XJO) shares.

As you’re likely aware, the RBA hiked rates for the 11th time in 12 months on 2 May. That took Australia’s official cash rate to 3.85%. Only one year earlier, the cash rate stood at an all-time low of 0.10%.

Immediately following the RBA’s unexpected interest rate boost, the ASX 200 tumbled 1%.

The RBA’s next interest rate decision will be announced on 6 June.

Here’s what these experts are saying on the 2023 federal budget’s likely impact on the central bank’s upcoming rate calls.

Will the 2023 federal budget usher in another RBA rate hike?

Up first, we have Treasurer Jim Chalmers.

Chalmers, as you’d expect, doesn’t believe the 2023 federal budget is inflationary. According to Treasury forecasts, Australia’s inflation rate will drop back into the RBA’s target range of 2% to 3% in 2025.

But the analysts at Citi don’t concur.

While measures like the Energy Relief Fund, and subsidies for child care and rental assistance, will decrease headline inflation, the broker pointed out that this will also put more money in households’ pockets.

According to Citi (courtesy of The Australian Financial Review), “Therefore, the impact on underlying inflation is ambiguous, and risks remain tilted to the upside because households could spend more because of subsidies.”

Citi reaffirmed its forecast for another 0.25% rate hike from the RBA in June.

BetaShares chief economist David Bassanese went a step further, calling the 2023 federal budget “unambiguously expansionary”.

With lower-income households generally more prone to spend extra income than save it, Bassanese said the budget is likely to fuel consumer demand rather than slow it.

“Hence, this is why it would have been beneficial to introduce other offsetting budget tightening measures at the same time,” Bassanese said.

BetaShares believes the budget has increased the chances ASX 200 investors will see at least one if not two more rate hikes from the RBA this year.

Joining the rate hawks in the wake of the 2023 federal budget is Goldman Sachs. With many households’ disposable incomes boosted by the budget and Australia’s immigration levels seeing the population swell, Goldman expects a 0.25% rate lift in July, or possibly in June.

UBS also believes the RBA will lift rates by another 0.25% at least one more time this year, most likely in July.

“Indeed, despite a rapid fiscal consolidation of the budget position in 22/23, the overall stance of the budget outlook is still stimulatory,” UBS economist George Tharenou said (quoted by the AFR).

That tends to be the thing with federal budgets. They give with one hand and take away with the other.

At the end of the day, after all, it’s the taxpayers’ money they’re reallocating.

The post Did the 2023 federal budget just lock in another RBA rate rise? appeared first on The Motley Fool Australia.

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• ASX hydrogen shares surge on 2023 federal budget $2b cash splash
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• Top broker tips 7 ASX 200 property-related shares to cash in on the 2023 budget

Motley Fool contributor Bernd Struben 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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Key ASX hydrogen shares are taking off today following the delivery of the 2023 federal budget last night. And for good reason.

The budget saw $2 billion set aside to accelerate Australia’s renewable hydrogen industry.

That’s good news for Fortescue Metals Group Limited (ASX: FMG). The company’s hydrogen venture Fortescue Future Industries is aiming to be a leader in the space.

The Fortescue share price is up 0.5% right now, trading at $20.68.

Meanwhile, shares in fellow hydrogen-focused stocks Pure Hydrogen Corporation Ltd (ASX: PH2) and Hazer Group Ltd (ASX: HZR) are putting the iron ore giant’s gains to shame.

Stock in Pure Hydrogen are surging 11.4% to trade at 19.5 cents at the time of writing while those in Hazer are leaping 6.9% to reach 69.5 cents.

For comparison, the benchmark All Ordinaries Index (ASX: XAO) is slipping 0.1%.

Let’s take a closer look at the government spending that’s seemingly putting wind under the renewable energy-focused ASX shares on Wednesday.

Labor reveals $2b Hydrogen Headstart program

It’s an exciting day for those invested in ASX hydrogen shares. The federal government revealed its $2 billion Hydrogen Headstart program alongside its 2023 budget last night.

In last night’s speech to parliament, treasurer Jim Chalmers said:

Hydrogen power means Wollongong, Gladstone and Whyalla, can make and export everything from renewable energy to green steel. Seizing these kinds of industrial and economic opportunities will be the biggest driver and determinant of our future prosperity.

The Hydrogen Headstart program makes up half of the $4 billion new renewable energy spend announced as part of this year’s budget.

It aims to scale up the development of Australia’s hydrogen industry by providing revenue support for large-scale renewable hydrogen projects through competitive production contracts.

A joint release from Chalmers, minister for climate change and energy Chris Bowen, and assistant minister for climate change and energy Jenny McAllister reads:

These [contracts] will help bridge the commercial gap for early projects and put Australia on course for up to a gigawatt of electrolyser capacity by 2030 through two to three flagship projects.

They said Australia’s path to net zero is dependent on the renewable energy source, which can be combusted for industrial heat, used as a chemical input for green manufacturing and as a fuel for heavy transport, or exported.

Fortescue has welcomed the move, saying it “demonstrates how seriously the government is taking the green hydrogen industry and its critical role in Australia’s future”.

How have ASX hydrogen shares been performing in 2023

Apparent budget-related gains aside, ASX hydrogen shares have been putting out a mixed performance so far this year.

Leading the pack is the Hazer share price, which has gained 25% since the start of 2023.

Meanwhile, that of Pure Hydrogen has lifted 3% and Fortescue stock is up 1% year to date.

Comparatively, the All Ordinaries Index has increased 4% since the new year began.

The post ASX hydrogen shares surge on 2023 federal budget $2b cash splash appeared first on The Motley Fool Australia.

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More reading

• Fortescue share price lifts on 2023 budget’s $2 billion hydrogen program
• What’s the forecast for the Fortescue share price this month?
• 5 things to watch on the ASX 200 on Wednesday
• Fortescue’s Twiggy could wipe this ASX 300 share from the bourse. Here are the details
• Why the iron ore price is ‘not out of the danger zone’

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

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It’s been an interesting day for the Bubs Australia Ltd (ASX: BUB) share price so far this Wednesday. Bubs shares closed at 18.5 cents each yesterday afternoon and opened at that same level this morning. However, the infant nutrition company initially jumped this morning, climbing to 19 cents a share soon after market open (up 2.7% at the time).

This bouncy performance comes after some big news from Bubs.

Just before market open today, Bubs released an ASX announcement regarding its leadership team. The company revealed that its CEO, Kristy Carr, has been terminated, with immediate effect. This was due to Carr’s alleged “failure to comply with reasonable Board directions”.

Bubs shares spike on CEO “termination”

Former executive chair Dennis Lim has also been terminated from the company. That’s effective immediately. It was only last month that Katrina Rathie was elected chair, replacing Lin.

Carr will be replaced by Richard Paine as interim CEO “until a permanent CEO is confirmed”.

Here’s some of what the statement had to say on this shake-up:

Noting the recent deterioration in Bubs’ financial performance over the half year, the non–executive directors considered the time was right for a change in leadership and to change the governance framework of the company to ensure that it aligns with ASX Corporate Governance Principles and best practice.

On 28 April 2023, Bubs announced that a strategic review of the global business with a particular focus on expenditure management and the Chinese market. The review is on track to be completed by 30 June 2023.

Chair Rathie added the following regarding Carr: “We acknowledge Kristy’s long service to Bubs and the role she has played in building the Bubs brand to the position it enjoys today.”

So that’s all we know for now. But this has certainly been a dramatic day for Bubs Australia.

Judging by the gain in the Bubs share price this morning, it seems investors approve of the decision to axe both Carr and Lin. That’s despite the fact we don’t know what kinds of “reasonable directions” Carr had apparently failed to follow from the board.

Bubs share price snapshot

The Bubs share price has been on a steep decline for a while now, which always increases pressure on a company’s CEO and management team. In 2023 alone, Bubs has lost almost 38% of its value. The company is also down almost 50% from where it was a year ago:

Bubs shares have also lost around 87% of their value since their last all-time high, which we saw back in May 2019.

At the current Bubs share price, this ASX company has a market capitalisation of $139 million.

The post Bubs share price ricochets following CEO sacking appeared first on The Motley Fool Australia.

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More reading

• UBS tips 4 ASX 200 retail shares to benefit from the federal budget
• Why is the NAB share price tumbling 4% on Wednesday?
• Top broker tips 7 ASX 200 property-related shares to cash in on the 2023 budget
• Top brokers name 3 ASX shares to buy today
• ASX 200 stock Technology One halted following cyber attack

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 Bubs Australia. 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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