In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. At the time of writing, the benchmark index is up 0.3% to 6,956.2 points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 4% to $5.74. Investors have been buying this infant formula company’s shares since the announcement of approval to sell its products in the United States. In addition, this morning the company kicked off its NZ$150 million on-market share buyback.

Cettire Ltd (ASX: CTT)

The Cettire share price is up 7% to $1.98. This appears to have been driven by a broker note out of Bell Potter. According to the note, the broker has recommenced coverage with a buy recommendation and $2.20 price target. Bell Potter believes Cettire “will continue to outperform its peer group consisting of global luxury retailers and local e-commerce players given its <1% market share in a large and growing market which could remain more resilient than other discretionary categories in a likely recessionary environment.”

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corp share price is up over 4% to $4.48. This morning this lottery company released a trading update and revealed that group revenue was up 11% over the prior corresponding period during the first four months of FY 2023. The Keno business has been a particularly positive performer, delivering 33% revenue growth.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is up 5% to $3.12. This follows the release of an announcement from the semiconductor company this morning. That announcement reveals that the first silicon wafers integrating Weebit’s embedded Resistive Random-Access Memory (ReRAM) module have been delivered. They were shipped from technology realisation partner SkyWater Technology.

The post Why A2 Milk, Cettire, Lottery Corp, and Weebit Nano shares are rising appeared first on The Motley Fool Australia.

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More reading

• Why is the A2 Milk share price surging 5% on Tuesday?
• Weebit Nano share price leaps 5% on ‘huge milestone’
• Broker tips A2 Milk share price to jump 24%
• Why did the A2 Milk share price go backwards in October?
• Brokers name 3 ASX shares to buy today

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 A2 Milk and Cettire Limited. 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. The terminal cash rate for this economic cycle will likely be around 4%. That means the Reserve Bank of Australia (RBA) will be largely done raising interest rates by around the middle of next year.

2. Elements of the equity markets will recover from their recent lows. In the US, I’d be looking at large-cap tech stocks like Microsoft Corp (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), and Meta Platforms Inc (NASDAQ: META). Australia is a little trickier, given commodity stocks have been strong, bank stocks relatively stable, and some tech stocks, even after their shellacking this year, still look expensive.

3. Many stocks will never again reach their 2021 all-time highs. Many former market darlings and COVID-19 beneficiaries would have to 10x from here to get back to where they traded at their peak. It just isn’t going to happen. I’m looking at you Zip Co Ltd (ASX: ZIP), Sezzle Inc (ASX: SZL), and Redbubble Ltd (ASX: RBL), and they’ve got plenty of mates.

4. That said, some fallen heroes will stage remarkable recoveries, rising 300% or more from these depressed levels. I own a few that have taken big tumbles for which I hold out hope of recovery, and in more recent times, I’ve taken bites in a few beaten-down ASX small and microcap stocks that are still growing quickly.

Recovery hopefuls: Pinnacle Investment Management Group Ltd (ASX: PNI), Aussie Broadband Ltd (ASX: ABB)

Newer bites: Field Solutions Holdings Ltd (ASX: FSG), Alloggio Group Ltd (ASX: ALO), Mighty Craft Ltd (ASX: MCL)

5. The economy will slow as interest rate rises start to bite. This will put pressure on corporate earnings, particularly in consumer discretionary retailers like Harvey Norman Holdings Limited (ASX: HVN), Kogan.com Ltd (ASX: KGN), and Temple & Webster Group Ltd (ASX: TPW). Profit warnings will likely outpace profit upgrades.

6. Even though some companies are likely going to experience falling profits in FY23, in some cases this has already been priced into their cheap stock prices. I’m certainly no energy and commodity stock expert, and I’m always very conscious of their cyclicality, but Woodside Energy Group Ltd (ASX: WDS) and BHP Group Ltd (ASX: BHP) trading on 8 to 10% trailing fully franked dividend yields and on trailing single digit multiples have significant future falls in the iron ore and oil price already reflected in their share prices.  

7. On a trailing basis, some retailers look dirt cheap. At $2, the Dusk Group Ltd (ASX: DSK) share price trades at seven-times profit and on a fully franked dividend yield of 10%. The specialty retailer of home fragrance products didn’t provide FY23 guidance given “ongoing uncertainty surrounding the macro-environment”. Dusk is capitalised at $125 million, has $21 million cash, and no debt. 

8. If you believe the economy will recover (it always has done so in the past) and corporate profits will be higher three to five years from now (as they have been in the past), and that will translate to a higher stock market in the future (as it has done so in the past), one of the simplest investing strategies and processes is to dollar-cost average into a low-cost exchange-traded fund (ETF).

My favoured option is the Vanguard MSCI Index International Shares ETF (ASX: VGS). Since its inception in 2014, it has returned 11.4% per annum, something that would have turned an initial $10,000 investment into almost $23,000. The ETF holds stakes in large US companies, including Apple, Microsoft, Amazon, Tesla, Johnson & Johnson, and Exxon Mobil. 

If you want to throw in a local flavour, consider adding the Vanguard Australian Shares Index ETF (ASX: VAS). You’ll get exposure to the big miners, the big banks, and the big supermarkets.

9. Interest rates will start turning lower around the third quarter of next year as the economy slows in response to standard variable mortgage rates of around 7.5 to 8%. Consumer confidence has already taken a big hit, dropping to its lowest level since April 2020 amid higher interest rates and surging inflation. 

To the points above, discretionary spend – retail, food and beverage, even travel – is about to take a hit.

10. The forward-looking stock market has already priced much of what’s coming into the prices of individual stocks. It knows not how far spending will fall, nor how much some corporate profits will shrink. 

Just as the stock market is falling now, despite an economy with near-record-low unemployment, the forward-looking stock market will go higher in the face of a sharply weaker economy. Bad news is good news for the stock market.

In the meantime, volatility is likely to persist. There could even be another bear market from here, where the S&P/ASX 200 Index (ASX: XJO) falls a further 20%.

For stock pickers, use it to your advantage to add to your favourite existing stocks, and to throw a couple of new positions into your portfolio. 

For ETF investors, continue making regular (fortnightly or monthly) contributions, come hell or high water. With annualised returns potentially around the 8% level, an investment made today would double in nine years. 

It reminds me of the Bill Gates quote…

“Most people overestimate what they can do in one year and underestimate what they can do in ten years.”

The post These 10 predictions could help you profit from the stock market regardless of inflation, interest rates or even another bear market appeared first on The Motley Fool Australia.

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More reading

• Why Baby Bunting, James Hardie, Sims, and Temple & Webster shares are dropping
• Why did the Woodside share price just hit an 8-year high?
• How regularly does the Vanguard Australian Shares ETF (VAS) pay dividends?
• Here’s the BHP dividend forecast through to 2027
• Goldman Sachs names 2 ASX 200 dividend shares to buy with 8% yields

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bruce Jackson has positions in Alloggio Group Limited, Alphabet (A shares), Alphabet (C shares), Aussie Broadband Limited, Field Solutions Holdings Limited, Meta Platforms, Inc., Mighty Craft Limited, and PINNACLE FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Apple, Aussie Broadband Limited, Harvey Norman Holdings Ltd., Kogan.com ltd, Meta Platforms, Inc., Microsoft, PINNACLE FPO, REDBUBBLE FPO, Temple & Webster Group Ltd, Tesla, Vanguard MSCI Index International Shares ETF, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd., Kogan.com ltd, and PINNACLE FPO. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, Aussie Broadband Limited, Dusk Group Limited, Meta Platforms, Inc., Temple & Webster Group Ltd, and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. In afternoon trade, the benchmark index is up 0.35% to 6,957.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down 4.5% to $2.55. This morning Macquarie downgraded this baby products retailer’s shares to a neutral rating and slashed the price target on them to $2.80. The broker has reduced its margin estimates to reflect the company’s trading update at its recent annual general meeting.

James Hardie Industries plc (ASX: JHX)

The James Hardie share price has sunk 14% to $28.63. Investors have been selling this building products company’s shares following the release of its half year update. Although James Hardie delivered solid top and bottom line growth, it downgraded its full year guidance. It also scrapped its dividend in favour of a share buyback.

Sims Ltd (ASX: SGM)

The Sims share price is down 9% to $11.65. This follows the release of the scrap metal company’s trading update at its annual general meeting. Sims advised that tough trading conditions have tightened trading margins in both percentage and dollar per tonne terms. As a result, it expects first half underlying EBIT to be in the range of $65 million to $75 million. This is a significant decline on the underlying EBIT of $361.7 million that it reported during the first half of FY 2022.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 3.5% to $5.35. This also appears to have been driven by a Macquarie downgrade. Its analysts have downgraded the online furniture retailer’s shares to an underperform rating and cut the price target on them to $4.00. Macquarie has concerns about trading conditions given the housing market downturn and rising rates.

The post Why Baby Bunting, James Hardie, Sims, and Temple & Webster shares are dropping appeared first on The Motley Fool Australia.

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• Here’s why this ASX 200 share is crashing 14% on Tuesday
• Why is the James Hardie share price crashing 11% today?
• ‘Potentially bottomed’: 2 ASX shares experts reckon can’t get any cheaper
• Here are the 10 most shorted ASX shares
• 2 excellent ASX growth shares that analysts say are buys

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Baby Bunting and Temple & Webster Group Ltd. 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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Investors in Novonix Ltd (ASX: NVX) shares know they can find this lithium battery company’s stock listed on our own Australian Securities Exchange. After all, Novonix is an Australian company, so it makes sense that its shares call the ASX home. Or do they?

Yes, Novonix shares are listed on the ASX, and have been since 2015.

But the company also has a secondary listing on the NASDAQ exchange. The NASDAQ is one of the two major exchanges in the United States.

Novonix only initiated its NASDAQ listing in February of this year under the ticker code ‘NASDAQ: NVX’. Prior to that, the company had an ‘over-the-counter (OTC)’ listing on the US markets (ticker code OTCQX: NVNXF), which it maintains today.

Novonix’s NASDAQ shares are actually what is known as ‘ADRs’ or American Depository Receipts. The ADRs are really certificates representing ownership of Novonix’s ASX shares. One NASDAQ ADR represents four ASX shares.

So why does Novonix have two share listings? Isn’t the ASX good enough for this company?

Two listings for Novonix shares

Well, the reality is that the US markets are significantly larger and more capitalised than the ASX is. As such, many companies list on both exchanges, or even just the US, to take advantage of this. Just look at ‘Australian’ company Atlassian Corp (NASDAQ: TEAM), which only calls the US home.

Further, a major investor in Novonix is US energy giant Phillips 66 (NYSE: PSX). So it’s possible that a presence on the US markets is advantageous to Novonix from a financial standpoint.

Here’s how the company justified its NASDAQ listing in a January announcement:

Establishing this program is part of an ongoing strategy to expand NOVONIX’s reach to investors in the United States and make the Company’s securities potentially eligible as a direct investment for North American institutions and fund managers.

So that’s why we see multiple listings for the Novonix share price around the world.

The post Why are Novonix shares listed on the Nasdaq as well as the ASX? appeared first on The Motley Fool Australia.

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More reading

• Why did the Novonix share price jump 50% in October?
• Why is the Novonix share price gaining today?
• Why is the Novonix share price tanking 5% today?
• A major shareholder sold off most of its Novonix shares last week. What’s happening?
• Novonix shares go for a swim after burning through $25 million

Motley Fool contributor Sebastian Bowen has positions in Atlassian. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Atlassian. 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 All Ordinaries Index (ASX: XAO) is in the green once more today, and these All Ords shares are making the most of it.

They’ve each lifted as much as 6% to hit their highest point in more than a year on Tuesday.

For comparison, the All Ords Index is up 0.25% at 7,146.8 points right now.

So, what’s helping to boost the stocks to new 52-week highs today? Let’s take a look.

3 ASX All Ords shares surging to 52-week highs

All Ords shares Mader Group Ltd (ASX: MAD), Perenti Ltd (ASX: PRN), and OFX Group Ltd (ASX: OFX) all took off earlier today to post their highest prices in more than 12 months.

And they weren’t alone in doing so. The share price of S&P/ASX 200 Index (ASX: XJO) energy giant Woodside Energy Group Ltd (ASX: WDS) also hit a near-eight-year high today – leaping 1% to $39.58 in intraday trade before slipping into the red this afternoon.

That gain was surpassed by that posted by the Mader share price earlier today. Stock in the maintenance services company lifted 3% to reach a high of $3.78 on Tuesday. That marks a new all-time high.

Interestingly, there’s been no news from the company since it posted a strong first-quarter performance, leading it up to its full-year guidance late last month. It expects to recognise at least $550 million of revenue and at least $35.5 million of net profit after tax (NPAT) for financial year 2022.

The Perenti share price is also gaining on Tuesday, soaring to its highest point in 52 weeks. It peaked at $1.025 earlier today, marking a 3% gain.

Like Mader before it, there’s been no news from the mining services company. The last time the market heard price-sensitive word from it was on 14 October when it hosted its annual general meeting (AGM).

The final All Ords share reaching a 52-week high is OFX Group. Its share price hit its highest point since 2016 earlier today before slumping into the red. Its new multi-year record sits at $2.91, 5.8% higher than its previous close.

The international payment services provider posted its half-year earnings today.

The company declared a 53% year-on-year increase in net operating income, coming in at $105.3 million for the six months ended 30 September. It also revealed a record $32.3 million of underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) – a 59% increase.

The post 3 ASX All Ords shares cracking new 52-week highs on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why did the Woodside share price just hit an 8-year high?
• Why is the A2 Milk share price surging 5% on Tuesday?
• Berkshire, Buffett feel the bear’s bite
• Lake Resources share price dips amid latest short-seller attack
• Why is the Core Lithium share price spiking 3% today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Mader Group Limited and OzForex Group Limited. The Motley Fool Australia has positions in and has recommended Mader Group Limited. The Motley Fool Australia has recommended OzForex Group Limited. 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 Woodside Energy Group Ltd (ASX: WDS) share price notched a fresh eight-year high in morning trade.

The S&P/ASX 200 Index (ASX: XJO) energy stock was swapping hands for $39.58, up 1.1% from yesterday’s close and the highest level since October 2014.

The Woodside shares have retraced since then and are currently down 1.3% for the day.

What’s driving ASX 200 investor interest?

ASX 200 investors have been bidding up the Woodside share price in 2022 amid soaring gas and crude oil prices.

Oil prices went sharply higher on Friday as investors speculated that Chinese authorities may be moving away from the nation’s strict COVID zero policies. The rolling lockdowns have drastically slowed China’s economic growth and dampened the country’s energy demand.

Chinese officials have since squashed those hopes, saying they are committed to a zero-virus policy.

Another major factor that could impact the oil price, and the Woodside share price, is the European Union’s pending restrictions on Russian oil exports amid its ongoing invasion of Ukraine. Russian crude imports will be banned by the EU commencing 5 December.

And November also marks the month that the Organization of Petroleum Exporting Countries (OPEC) agreed to cut their production limits, a move likely to hit with a lagging impact.

All told, the supply and demand dynamics see Brent crude oil trading for US$97.92 today. While that’s down 0.6% overnight, Brent is still up 3.4% from last Thursday, and up 16.5% from the recent lows it hit on 26 September.

Atop Woodside’s strong share price gains this year, the company also pays an 8.0% trailing dividend yield, 50% franked. Certainly an appealing number for income investors, provided the company can maintain those levels of payouts going forward.

Woodside share price snapshot

The Woodside share price has rocketed 76% this year on the back of soaring crude prices, with Brent up 26% in 2022.

For some context, the ASX 200 is down 8% year to date.

The post Why did the Woodside share price just hit an 8-year high? appeared first on The Motley Fool Australia.

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• Why is the Woodside share price climbing today?
• 5 things to watch on the ASX 200 on Monday
• Why did the Woodside share price totally smash the ASX 200 today?
• Here are the top 10 ASX 200 shares today
• With 8% yield, are Woodside shares a dividend no-brainer 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 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 A2 Milk Company Ltd (ASX: A2M) share price is having a strong day.

In afternoon trade, the infant formula company’s shares are up 5% to $5.78.

Why is the A2 Milk share price rising?

The A2 Milk share price is rising today despite there being no news out of the company.

However, the consumer staples sector is performing very positively today and playing a role in keeping the ASX 200 index in positive territory.

In addition, a big announcement last week is likely to have given investor sentiment a boost and could be supporting the A2 Milk share price this week.

That announcement revealed that the company has received FDA approval to import, sell, and distribute products in the US market. Management estimates that it will ship 1 million cans of infant formula to the country during the second half. This will support a US market which has been facing shortages this year.

A2 Milk Company’s managing director and CEO, David Bortolussi, commented:

We are increasing our supply to respond to this situation, while importantly ensuring that we continue to meet the needs of our other IMF consumers and trade partners in China and other markets. If the US requires further support over an extended period, we have the proven ability to scale up significantly.

In response to the news, Bell Potter  retained its buy rating and lifted its price target slightly to $6.80. This implies potential upside of almost 18% for investors even after today’s strong gain.

The post Why is the A2 Milk share price surging 5% on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Broker tips A2 Milk share price to jump 24%
• Why did the A2 Milk share price go backwards in October?
• Brokers name 3 ASX shares to buy today
• Why A2 Milk, Bravura, Magellan, and Pendal shares are dropping
• Here are the top 10 ASX 200 shares today

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 A2 Milk. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Despite posting solid advances on Friday, stock markets were down last week, and all the same worries investors have had are still largely present. Midterm elections on Tuesday will draw attention, but the focus seems to remain on the Federal Reserve and broader macroeconomic pressures. In premarket trading, futures contracts on the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were slightly higher, as investors seem to hope that things will turn out favorably.

Making news over the weekend was Warren Buffett, whose Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) reported its third-quarter financial results on Saturday morning. As was widely expected, the Oracle of Omaha did prove vulnerable to the bear market. However, its stock was up in premarket trading on Monday, and a closer look at the underlying businesses held within the insurance-focused conglomerate could leave you with a good feeling about Berkshire’s prospects.

Losses for Berkshire — with a caveat

It’s easy for those who aren’t familiar with Berkshire Hathaway’s accounting requirements to draw the wrong conclusion from a quick glance at the insurance giant’s headline numbers. Berkshire posted a net loss of $2.69 billion during the third quarter, bringing its year-to-date losses to a staggering $40.98 billion.

Yet Berkshire is required to mark its investments and derivatives to market on a quarterly basis. This has the impact of adding huge gains during bull markets, but when the value of those investments goes down — as has happened in 2022 — it results in massive charges against earnings. Indeed, those investments and derivatives cost Berkshire $10.45 billion in the third quarter and a whopping $65.07 billion in the first nine months of the year.  

Buffett would probably suggest that looking at realized gains and losses would make more sense. Berkshire didn’t have a perfect track record there, with net realized losses of $378 million in the third quarter and $946 million in the first nine months of 2022. However, that at least reflects investment decisions that Buffett and his team made rather than the simple day-to-day fluctuations of share prices.

The rest of the story

To understand Berkshire fully, the best place to start is with the operating earnings of its subsidiaries and major ownership holdings. There, you can get a better picture of the forces affecting the company’s overall fundamental performance. Doing that yields some interesting insights:

• Berkshire’s insurance units posted a $962 million underwriting loss for the period. That was worse than in the year-earlier quarter, showing the impact of higher catastrophic losses that other insurers have also seen.
• At the same time, though, rising interest rates played a part in boosting the amount of investment income Berkshire’s insurance-related assets generated. The 21% year-over-year rise to $1.41 billion was enough to offset higher underwriting losses.
• Berkshire’s major cyclical subsidiaries had mixed performance. The BNSF railroad unit saw operating earnings ease lower by roughly 6% to $1.41 billion, but the utility and energy businesses saw a similar-sized rise year over year to $1.59 billion. The performances of the two areas basically canceled each other out.
• The strongest absolute gains came from Berkshire’s other controlled businesses, with operating earnings there climbing by more than half a billion dollars to $3.25 billion.

In addition, Berkshire noted that its use of foreign currency-denominated debt yielded gains due to the strong U.S. dollar, adding $679 million to operating earnings for the quarter.

Overall, operating earnings rose 20% in the quarter to $7.76 billion, and year-to-date figures have seen almost exactly the same growth rate. That suggests that Berkshire Hathaway’s core businesses are still as healthy as ever and well positioned to deal with the unique challenges of this particular bear market. 

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

The post Berkshire, Buffett feel the bear’s bite appeared first on The Motley Fool Australia.

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Dan Caplinger has positions in Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). 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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In afternoon trade, the Lake Resources N.L. (ASX: LKE) share price has given back its morning gains and slipped into the red.

At the time of writing, the lithium developer’s shares are down over 1% to $1.13.

Why is the Lake Resources share price falling?

Investors have been selling down the Lake Resources share price this afternoon following the release of another short attack from J Capital.

According to the release, the investment firm has secured information from the United Kingdom that paints a very different picture to an announcement from August 2021 relating to potential funding from the UK Export Finance (UKEF).

That announcement was titled “Strong Expression of Interest to Fund Project to approximately 70% of total Kachi Project funding requirements.”

However, J Capital alleges that UKEF was not a fan of the announcement.

What is J Capital saying?

Below are a few key paragraphs from J Capital’s update:

We made a Freedom of Information Act (FOIA) application to the UK government to verify Lake Resources’ (Lake) claim that it has “confirmed” funding from UK Export Finance (UKEF). These documents seem to reveal that Lake has made statements that are incorrect about the expression of interest (EOI) from UKEF. UKEF says that Lake is just at the start of the application process.

Lake claims the EOI from UKEF provided in August 2021 “considerably de-risks the project.” A cache of documents released by UKEF under the FOIA request shows a conflict between the information Lake presents to the market and UKEF’s view of the EOI supporting the project.

UKEF appears to be critical of Lake’s press release for characterizing the EOI as a “strong” expression of interest and has instructed Lake not to say that the EOI is an endorsement of the Kachi project’s ESG benefits. The same cache of documents takes issue with a Reuters article quoting then-Managing Director, Stephen Promnitz saying the UKEF “really liked the ESG benefits of Kachi.” In respect to this, the UKEF has said “Lake should refrain from inferring a statement from UKEF”.

J Capital also highlights that despite the above, Lake Resources stated in its annual report that there is a 100% probability that its Chairman, Stu Crow, will receive 5 million performance rights that are dependent on signing finance agreements for the project. It adds:

Unless there have been some recent undisclosed developments, Lake is aware the financing from UKEF is not “confirmed” and yet, despite this, they have made provision for Mr Crow to receive the performance rights that have now vested.

Lake Resources has not yet responded to the report.

The post Lake Resources share price dips amid latest short-seller attack appeared first on The Motley Fool Australia.

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• Why Atlantic Lithium, Coronado Global, Lake Resources, and Rio Tinto are charging higher

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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It’s looking like another strong start for the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. At the time of writing, the ASX 200 has added a healthy 0.25%, taking it to over 6,950 points. But there’s a whole other party going on with the Core Lithium Ltd (ASX: CXO) share price.

Core Lithium shares did not look like they were going to join in the ASX 200 party this morning. In fact, this ASX lithium stock got down to around $1.44 a share soon after market open. But following this dip, Core Lithium shares spiked. The lithium producer has now risen to $1.50 a share at the time of writing, up a healthy 3.1% for the day.

So what’s going on here?

Why is the Core Lithium share price all over the place today?

Well, what we do know is that it has absolutely nothing to do with anything out of the company itself, seeing as Core Lithium hasn’t put out any official ASX news since 4 November.

However, we have also seen some volatility with some of the other ASX lithium stocks’ share prices today.

Sayona Mining Ltd (ASX: SYA) shares have been bouncing around all day, with stints in both positive and negative territory. It’s presently up by 0.83% at 24 cents a share.

Pilbara Minerals Ltd (ASX: PLS), on the other hand, has had a very strong day indeed. The leading ASX lithium producer’s shares have gained a rosy 3.94% today, putting the company at $5.40 a share.

Liontown Resources Limited (ASX: LTR) is another lithium share that has seen some bouncing around today. The company is currently up a pleasing 2.88% at $1.96 a share. But today has seen Liontown go as high as $1.99 and as low as $1.94.

So it’s been a pretty wild ride for most ASX lithium stocks today, including for the Core Lithium share price. That’s despite no real news from any of them. But this is not exactly unusual these days, so perhaps we’ll see more moving and shaking throughout the week.

The post Why is the Core Lithium share price spiking 3% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
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• Which is the better ASX buy, Allkem or Core Lithium shares?
• Here are the 3 most traded ASX 200 shares on Thursday

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 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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