The Motley Fool has already revealed Wilsons equities strategist Rob Crookston’s best growth and asset-rich ASX shares that could become takeover targets.

The theory is that buying up stocks that are tempting for acquisitions could be “lucrative” because takeover offers are often far higher than market prices.

“As we start moving into 2023 we still believe there will be bids made on the Australian market as there are still well-priced equities that represent value for the right buyer,” Crookston said in a memo to clients.

“As institutional money continues to flow in the quest for yield, private capital is increasingly looking for opportunities in the listed space.”

A third area where such candidates pop up is among resources companies.

Here are Crookston’s best ideas from that area:

Looking forward to ‘a robust year’ for resources shares

Crookston is anticipating “a robust year for resources stocks”.

“[This] will include M&A activity as the sector undertakes growth and consolidation to take advantage of strong balance sheets after a bumper 2022.”

Electric vehicle and battery ingredients will be in hot demand for years to come, as the world transitions to a zero-carbon future.

“We believe the large major miners are looking to diversify towards EV minerals,” said Crookston.

“We saw this with BHP Group Ltd (ASX: BHP)’s bid for Oz Minerals Limited (ASX: OZL) last year.”

The gold industry has been in a frenzy for a while and, according to Crookston, 2023 will be no different.

“Gold miners have also continued a five-year trend of deal-making which has largely been driven by an arms race between the two biggest miners Newmont Corporation (NYSE: NEM) and Barrick Gold Corp (NYSE: GOLD),” he said.

“We saw this with the recent bid for Newcrest Mining Ltd (ASX: NCM) from Newmont in January 2023.”

So considering these drivers, Crookston’s team came up with four stocks that they consider prime takeover targets:

• Mineral Resources Ltd (ASX: MIN)
• Allkem Ltd (ASX: AKE)
• Lynas Rare Earths Ltd (ASX: LYC)
• Northern Star Resources Ltd (ASX: NST)

Northern Star is a gold miner with operations in Australia and the US. Its share price is up 8.3% over the past 12 months.

Allkem and Mineral Resources both have credentials as lithium producers, seeing their stock prices rise 32% and 86% respectively over the past year.

Lynas is one of the few major producers of rare earth minerals outside of China. Despite this, the share price is down 3% over the past 12 months due to licensing issues with the Malaysian government.

The post 4 ASX 200 mining shares to buy for takeover potential: expert appeared first on The Motley Fool Australia.

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More reading

• Mineral Resources share price lower despite plan to be a ‘world-leader in lithium mining’
• Top brokers name 3 ASX shares to buy today
• Here’s the latest ‘bearish news’ from brokers on ASX 200 lithium stocks
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped into the red. The benchmark fell 0.4% to 7,285.4 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to edge higher on Friday following a volatile but positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 1 point higher this morning. In late trade in the United States, the Dow Jones is up 0.2%, the S&P 500 is up 0.5%, and the NASDAQ index is up 0.7%. The US market was up strongly, then down heavily, and now looks set to finish higher.

Oil prices rebound

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good finish to the week after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.9% to US$75.35 a barrel and the Brent crude oil price is up 1.9% to US$82.16 a barrel. Tightening supplies boosted prices.

Pilbara Minerals results

The Pilbara Minerals Ltd (ASX: PLS) share price will be one to watch on Friday. After the market close yesterday, the lithium giant released its half-year results. It posted a 647% increase in revenue to $2.18 billion and a 989% increase in profit after tax to $1.24 billion. This allowed the company to declare its inaugural 11 cents per share fully franked interim dividend. Management also upgraded its FY 2023 production guidance.

Gold price slumps

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.6% to US$1,830.6 an ounce. Gold hit a two-month low on rate hike concerns.

Qantas is a buy

The Qantas Airways Limited (ASX: QAN) share price is great value according to analysts at Goldman Sachs. In response to its first-half results, the broker has retained its conviction buy rating with an $8.30 price target. It commented: “We believe the current share price does not reflect the group’s improved earnings capacity.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Broker says Pilbara Minerals share price is heading even higher
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Platinum, Qantas, Red 5, and Zip shares are dropping today
• 3 ASX 200 stocks being punished on their results announcements

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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Even though stock markets might be looking ahead to a pause in interest rate hikes, the real world is still grappling with stubbornly high inflation.

The yearly increase in Australia’s consumer price index stands at 7.8%, which is far higher than what the Reserve Bank would like.

It also means that $100 in your wallet one year ago now only has $92.20 of spending power.

Fidelity International investment director Tom Stevenson is worried about the longer-term consequences.

“It’s a worrying reminder that, when the dust has settled, we may find ourselves in an ongoing environment of higher structural inflation,” Stevenson said in the UK’s The Telegraph.

“Even a mildly inflationary environment can be a tricky one for investors to navigate.”

Inflation is a corrosive ‘tax’ on your investment returns

As well as the obvious cost-of-living pressures imposed on everyday consumers, high inflation is also an “insidious tax” on investors.

A simple reverse application of The Rule of 72 quickly shows how inflation eats into capital, according to Stevenson.

“Divide the expected rate of inflation into 72 and the answer indicates how many years it will take to halve your real, inflation-adjusted purchasing power,” he said.

“At 6%, it will only take 12 years. That 25-year retirement you are hoping for might halve your real wealth twice.”

That means that the first priority for investors in 2023 is to minimise the gap between investment returns and the rate of inflation.

“Keep the difference to 3% and the halving of your real wealth will take 24 years. At 2% the reduction will take 36 years,” said Stevenson.

“Reduce it to zero and, self-evidently, you will keep your head above water in real terms.”

Then obviously you want to earn an investment return on top of this break-even point.

These are the rocks to look under

So where are you going to find an asset to reliably bring back at least 7.8% per annum?

According to Stevenson, the first admission that investors need to make is that exceeding or even just matching inflation in the current environment will involve taking on some risk.

“Cash won’t cut it and fixed income investments like bonds will only be useful in spurts, as and when interest rates come down to tackle slowing growth. This year may be one of those, but longer-term I don’t expect bonds to be the answer,” he said.

“Even inflation-linked bonds offer only a partial solution.”

So turning to equities, Stevenson suggested seeking stocks living in one or more of five areas.

First is to invest in dividend-paying ASX shares.

“No chief executive wants to cut the pay-out to shareholders so dividends tend to be the more stable component of a share’s total return.”

Second is to focus on the finance and commodities sectors.

“A bank makes its profit in the gap between what it charges to lend you money and what it will pay you to borrow your cash. In a higher rate environment that gap is likely to be wider,” said Stevenson.

“Commodities, too, are often good performers in an inflationary environment, not least because higher prices for oil, gas, food and metals are often a contributor to inflation in the first place.”

Thirdly, take a look at “defensive” sectors producing goods and services consumers just can’t cut out. Stevenson suggested supermarkets and household product makers meet this criteria.

“Fourthly, look for companies with pricing power,” said Stevenson.

“These companies are more likely to be at either end of the scale — either luxury goods companies selling things to people that don’t know there’s a cost-of-living crisis or low-cost, feel-good providers like McDonald’s Corp (NYSW: MCD) for those that do.”

The final area to search for are businesses that are “part of the solution”.

“Inflation or not, people will continue to seek answers to the world’s problems. That might come in the form of a renewable energy company or a cloud computing business.”

The post 5 types of ASX shares to buy for high inflation times: expert appeared first on The Motley Fool Australia.

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More reading

• 3 ASX dividend stocks to try and turn $10,000 into $1 million!
• 2 ASX gold stocks on the move following results updates
• Morgans names 2 ASX 50 shares to buy now
• Just how low could the Novonix share price go?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo 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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Dividend stocks are a popular option for investors, and it isn’t hard to see why. These stocks provide investors with income on a regular basis, usually twice a year but in some cases quarterly.

While some investors will use these dividends as income to live from, they can also be reinvested.

It is the latter option that could help you generate significant wealth in the future if you are able to invest consistently over a long period of time. This is thanks to the power of compounding, which is what happens when you earn interest on top of interest.

For example, according to Fidelity, between 1991 and 2021, the Australian share market provided investors with an average total return of 9.6% per annum. Thanks to compounding, this means that a single $10,000 investment generating this return would have grown into $155,000 over 30 years.

And while past performance is no guarantee of future returns, this is in line with historical averages and it would be disappointing if similar returns were not generated in the future.

Investing consistently

The above example was a single investment left to run for 30 years. But what would happen if you kept investing rather than just settling for a single investment?

If you could spare a further $5,000 each year after that initial $10,000 investment, then by investing in ASX stocks and reinvesting your dividends, you could grow your wealth to $1 million after three decades if you generated an average 9.6% per annum return.

At that point, you could construct your portfolio so that it contains ASX dividend stocks that provide 5% yields. And then instead of reinvesting your dividends, you could take your $50,000 dividend pay check as a source of income to live from. All without ever having to lift a finger.

But which ASX dividend stocks could be top options?

Investors may want to look for ASX dividend stocks that have strong business models, sustainable dividends, positive long term growth outlooks, and competitive advantages. These are qualities that Warren Buffett looks for when investing, and given his track record, it’s hard to argue against this strategy.

Companies such as Goodman Group (ASX: GMG), Sonic Healthcare Limited (ASX: SHL), and Treasury Wine Estates Ltd (ASX: TWE) tick a lot of these boxes and could be worth a closer look.

The post 3 ASX dividend stocks to try and turn $10,000 into $1 million! appeared first on The Motley Fool Australia.

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• My 3 best forms of passive income for 2023
• These blue chip ASX 200 shares are post-results buys: experts
• Why I’m more eager than ever to buy Sonic Healthcare shares following earnings
• 2 stellar ASX 200 growth shares to buy now: analysts
• 3 excellent ASX 200 shares to buy and hold for a decade: analysts

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 recommended Goodman Group, Sonic Healthcare, and Treasury Wine Estates. 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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If you’re looking for exposure to the banking sector, then ANZ Group Holdings Ltd (ASX: ANZ) shares could be the way to do it.

That’s the view of analysts at Citi, which have named the banking giant as its top pick in the sector.

Its analysts recently responded to the bank’s first quarter update by retaining their buy rating and $29.25 price target on its shares.

Based on the latest ANZ share price of $24.77, this implies potential upside of 18% for investors over the next 12 months.

And with the broker expecting a $1.66 per share fully franked dividend in FY 2023, which would yield 6.7%, the total potential return on offer with ANZ shares stretches to almost 25%.

Why is the broker bullish on ANZ shares?

Citi was pleased with ANZ’s performance in the first quarter and particularly the strong trends it is exhibiting in lending growth and asset quality.

And while no earnings data was provided, the broker believes that the update suggests that the bank’s earnings are trending ahead of expectations. The broker commented:

ANZ’s 1Q23 disclosures exhibited strong trends in both lending growth and asset quality. No earnings disclosure was provided, but we think that after backing out RWA movements from capital, it comfortably implies above market earnings, although subject to movements in deductions/reserves.

Asset quality is set to be the key focus of today’s release, with an $83m provision release in the quarter driven by largely unchanged CP and a $101m IP release. Despite fears of deteriorating asset quality, impaired assets declined again in the quarter, although this could be the bottom as seasonally mortgages and personal credit arrears tick higher in the March quarter. Institutional lending momentum continued and accelerated in the Dec qtr, which we expect was driven by more available liquidity and pricing vs debt markets.

All in all, the broker believes this makes ANZ shares the best option for investors in the sector right now. It concludes:

ANZ remains our top pick in the sector, and we expect the lending momentum, particularly in institutional, to continue to differentiate vs peers.

The post Why ANZ shares are this broker’s ‘top pick in the sector’ appeared first on The Motley Fool Australia.

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• Why is the ANZ share price tumbling on Wednesday?
• Buy ANZ shares today for 16% upside: broker
• Brokers name 3 ASX shares to buy now
• Are ANZ shares a buy after the bank’s Q1 update?
• Expect 6%+ dividend yields from these ASX 200 shares: analysts

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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ASX 200 share Eagers Automotive Ltd (ASX: APE) is rocketing today after the company released its full-year results for 2022.

The Eagers share price is up by 9.3% to $13.04 at the time of writing. It hit an intraday high of $13.44 in earlier trading, which was 12.65% above yesterday’s closing price of $11.93.

Australia’s biggest car sales group announced a record full-year dividend of 71 cents per share for FY22. This is up 13.6% compared to FY21. The final dividend payment for FY22 will be 49 cents per share.

Let’s see what else the company reported today.

ASX 200 share rips it up on record operating profit

Here are the highlights of the 12 months ended 31 December 2022 (FY22):

• Record underlying operating profit before tax of $405.2 million, up from $401.8 million in the prior corresponding period of FY21 (pcp)
• Statutory profit before tax of $442.2 million, down from $456.8 million pcp
• Available liquidity of $631.1 million
• Fully franked final dividend of 49 cents per share, up 15.3% pcp.

What else happened in FY22?

Eagers Automotive said its record profit came down to continuing strong demand for both new and used cars, as well as a “sustainable strong return on sales through a reset cost base and ongoing focus on technology enabled productivity improvements …”.

It also noted the successful acquisition and integration of the ACT and South Australia multi-franchised dealership groups and continued investment in strategic partnerships.

The FY22 statutory result included significant items of $37 million net income before tax. This is predominately related to the capital gain made on the sale of the Bill Buckle Auto Group.

What did management say?

Eagers Automotive CEO Keith Thornton said:

Our record full year underlying profit reflects the strength of ongoing market dynamics combined with our reset and more productive operating platform, while our record dividend underlines the confidence the Board has in our outlook for 2023 and beyond.

Our new car order bank grew by 74% in 2022, representing an all-time record level with an extended run-off period and providing material embedded gross profit that will support future trading results.

What’s next?

Thornton said the industry “is at an inflection point” as the world begins to decarbonise.

He said:

… Eagers Automotive is uniquely positioned to capitalise on its scale and expertise while leading the generational shift towards a lower emission future.

Eagers Automotive share price snapshot

The ASX 200 share is up 21% in the year to date and down 7% over the past 12 months.

This compares to a 4.9% year-to-date bump in the S&P/ASX 200 Index (ASX: XJO) and a 1.1% rise over the past year.

The post Guess which ASX 200 share is soaring 9% after declaring a record dividend appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. At the time of writing, the benchmark index is down 0.4% to 7,285.4 points.

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

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is down 17% to $1.89. Investors have been selling this fund manager’s shares following the release of a disappointing half-year result. Platinum reported a 20.5% decline in revenue to $102.26 million and a 37.4% decline in net profit to $37.56 million. This led to the company slashing its dividend by 30% to 7 cents per share.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is down 6.5% to $6.05. This follows the release of the airline operator’s half-year results. Although the Flying Kangaroo delivered a profit before tax at the top end of its guidance range and announced a $500 million on-market share buy-back, investors appear to have been betting on an even stronger result.

Red 5 Limited (ASX: RED)

The Red 5 share price is down 23% to 13.5 cents. This morning, this gold miner announced the completion of an $80 million institutional placement. These funds were raised at a 23% discount of 13.5 cents per share. The proceeds will ensure Red 5 is well funded, with sufficient working capital to support steady-state operations at the newly commissioned King of the Hills mine.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down almost 7% to 52.7 cents. Investors have been selling this buy now pay later (BNPL) provider’s shares following the release of its half-year results. Although Zip reported record revenue, it still recorded a loss after tax of $243 million. Nevertheless, management believes it has sufficient cash to see it through to positive group cash EBTDA in FY 2024.

The post Why Platinum, Qantas, Red 5, and Zip shares are dropping today appeared first on The Motley Fool Australia.

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• Why is Qantas buying back shares instead of paying dividends?
• Qantas share price falls 4% despite huge profits and major share buy-back
• Zip share price lower on $243m first-half loss
• Qantas share price on watch amid $1.4b half-year profit
• Earnings preview: Here are the ASX shares reporting on Thursday

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 Zip Co. 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 might be earnings season right now but, for some ASX shares, the top line is more of a focus than profits.

This is common in companies that have brought relatively new products to the market and are chiefly looking to build their customer base and take market share. In this scenario, rapid revenue growth is a prime metric of successful execution.

Two Australian companies currently on this path are ASX healthcare shares Nanosonics Ltd (ASX: NAN) and Polynovo Ltd (ASX: PNV). Both of these companies have released their first-half results for FY2023 to the market today.

So, are these revolutionary medical product sellers still delivering revenue growth fast enough to put your eyebrows at risk?

Are these ASX shares delivering the goods?

Accelerating revenue growth

Let’s start with the fastest-growing of the two companies, Polynovo. The $1.57 billion medical company, primarily focused on burns and wounds, showed the market it has high growth potential.

Polynovo achieved record revenue in the first half of FY2023, totalling $29.5 million. The figure represents an impressive 62.2% increase on the prior corresponding period. Notably, the rate of growth is the highest the company has recorded since the first half of FY2020 — suggesting a reacceleration of sales.

The company dialled up sales of its flagship biodegradable temporizing matrix (BTM) products by 67.5% during the period. Sales in the United States made the largest contribution in dollar terms, growing 61% to $22.8 million.

However, burgeoning employee and administrative expenses in the half swung Polynovo back into a net loss of $3.9 million.

Shares in this ASX healthcare company are up 3.38% at the time of writing to $2.295 apiece, furthering the company’s one-year share price gain to 101%.

Slower than last year

Much like Polynovo, ultrasound disinfection company Nanosonics came in with double-digit revenue growth. However, the difference begins at the rate of growth compared to the prior corresponding period.

For the six months ending December 2022, Nanosonics recorded $81.6 million in revenue — up 35% year on year. Certainly, it’s an impressive result on its own, though this is down from an increase of 41% in the previous first half.

Furthermore, the company’s new installed base of 1,270 devices was down 10% from the 1,410 it rolled out in the prior period.

On a positive note, consumables and service revenue increased 34% to $55.7 million. This was up on the previous growth rate of 23%. This could be a promising sign as the company looks to follow the classic razor and blade business model.

Accelerating revenue and controlled costs enabled Nanosonics to produce a supercharged net profit after tax (NPAT). Net profits increased 167% compared to the same period last year, hitting $10.4 million.

The Nanosonics share price is currently 0.32% higher to $4.755 today. Though, where the performance of this ASX share really outshines the broader market is in its one-year return — that’s up 15%.

The post 2 high-profile ASX healthcare shares lifting on blazing revenue growth appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Why did ASX 300 healthcare stock Polynovo tumble 12% today?
• 3 ASX shares I dream of owning at the right price

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nanosonics and PolyNovo. The Motley Fool Australia has positions in and has recommended Nanosonics. 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 S&P/ASX 200 Index (ASX: XJO) has come under pressure on Thursday. In afternoon trade, the benchmark index is down 0.35% to 7,287.9 points.

Four ASX shares that aren’t letting that hold them back today are listed below. Here’s why they are charging higher:

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is up 4% to $24.85. This morning, in response to its half-year results from yesterday, analysts at Morgans retained their add rating with an improved price target of $29.00. the broker notes that “LOV reported NPAT of $50.5m (pre-AASB 16), 1% higher than our forecast.”

Medibank Private Ltd (ASX: MPL)

The Medibank share price is up 6% to $3.27. This follows the release of the health insurer’s half-year results. The company reported a 1.3% increase in revenue to $3.63 billion and a 6.7% lift in underlying net profit after tax to $227 million. This allowed Medibank to increase its fully franked interim dividend by 3.2% to 6.3 cents per share.

Qube Holdings Ltd (ASX: QUB)

The Qube share price is up 9% to $3.25. Investors have been buying this logistics solutions company’s shares following the release of its half-year results. Qube reported a 23% increase in underlying revenue to $1.5 billion and a 41% jump in net profit after tax to $125 million. This was driven by continuing high volumes across most of Qube’s core markets, as well as the full period contribution from prior acquisitions and growth capex.

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup share price is up 8% to $6.13. This morning, this salary packaging and fleet management company released its full-year results and reported a 1% increase in revenue to $225 million but a 12% decline in net profits after tax before amortisation to $61 million. The latter was at the high end of its guidance range.

The post Why Lovisa, Medibank, Qube, and Smartgroup shares are charging higher 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 Lovisa. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool Australia has recommended Lovisa. 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 All Ordinaries Index (ASX: XAO) battery hopeful Talga Group Ltd (ASX: TLG) is tumbling out of a trading halt on Thursday.

It comes as the company announces a successful $40 million institutional placement and updates the market on permitting advances.

Right now, the Talga share price is $1.60, 14.44% lower than it was when it was frozen ahead of the market opening on Tuesday. However, it hit a low of $1.53 earlier – marking an 18.2% fall.

Let’s take a closer look at what might be weighing on the All Ords battery stock today.

ASX All Ords battery stock tumbles on Thursday

Stock in battery materials developer Talga is plummeting as the company returns to trade after offering 25.8 million new shares for $1.55 apiece.

The oversubscribed placement was supported by both new and existing institutional investors.

Managing director Mark Thompson said the demand “highlights the quality of Talga’s graphite anode projects and battery material technologies”.

The raised funds will go towards the Sweden-based Vittangi Project’s early works.

Speaking of the Vittangi Project, Talga revealed a big step for its 100,000 tonnes per annum graphite mining operation at the project’s Nunasvaara South.

The main hearing for the operation’s environmental permit application began before the Swedish Land and Environment Court late last month and finished yesterday.

The court will publish its decision – which will be subject to certain rights of appeal – on 5 April.

Meanwhile, the company applied for permits to establish a 19,500 tonnes per annum commercial battery anode manufacturing plant in the Luleå Industrial Park.

Permits to build its refinery production facilities have since been granted by the LuleÃ¥ Municipality. They’ll come into force late next month.

Environmental permits are still progressing through the court. A positive ruling could see the company kicking off works at the refinery site in the second half of 2023.

Talga share price snapshot

Fortunately, today’s drop hasn’t been enough to see the All Ords battery stock in the longer-term red.

The Talga share price is still up 13% year to date and 17% over the last 12 months.

For comparison, the All Ords has gained 5% so far this year. The index is currently flat with where it was this time last year.

The post Why did this ASX All Ords battery stock just crash 18%? appeared first on The Motley Fool Australia.

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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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