BrainChip Holdings Ltd (ASX: BRN) shares are falling again on Monday.

In afternoon trade, the semiconductor company’s shares are down over 1% to 87 cents.

This means that since the back end of July, the company’s shares have dropped over 31% from $1.27.

What’s going on with BrainChip’s shares?

As some readers would be aware, at the start of each week, I reveal the ten most shorted shares on the Australian share market.

While BrainChip doesn’t feature in the top ten (yet), short sellers have been building larger and larger positions in the company in recent months.

So much so, the most recent data shows that short sellers now have a rather ominous and devilish interest of 6.66%. That’s the equivalent of 116.4 million shares.

Why are short sellers targeting BrainChip?

Unfortunately, there isn’t a short thesis available to explain why short sellers are betting on BrainChip shares crashing lower. However, it isn’t hard to imagine why they are attracted to the company.

The first is the company’s valuation, which currently stands at $1.5 billion. Some may say that this expensive considering BrainChip is generating next to no revenue.

For example, during the first half, the company reported cash receipts of just US$1.4 million and a loss of US$8.5 million. And given how the market has an aversion for loss-making tech shares right now as interest rates rise, it’s quite remarkable that the BrainChip share price is in positive territory year to date.

Short sellers could also have doubts about the company’s technology.

With BrainChip competing against giants such as IBM, Intel, and Qualcomm, which invest billions into research and development, it would be incredible if BrainChip’s small team and tiny budget allows it to create technology that not only outperforms its rivals but leads the industry.

Finally, the company has released a lot of promising announcements over the last 12-24 months, but none appear to have gone anywhere. One of those was an Early Access Program Order from space agency NASA.

It has been almost two years since the order was placed but no longer gets spoken about. In fact, it appears to have ended after just three weeks on 18 January 2021 based on NASA data.

What’s next?

Where the BrainChip share price goes from here, only time will tell.

But it certainly will be interesting watching on from the safety of the sidelines.

The post Warning: BrainChip shares are being targeted by short sellers appeared first on The Motley Fool Australia.

More reading

• Why BrainChip, Emeco, Harvey Norman, and Pilbara Minerals shares are dropping
• Why is the BrainChip share price underperforming on Friday?
• BrainChip share price flat despite ‘new milestone’
• Here are the top 10 ASX 200 shares today
• Bank of Queensland, BrainChip, Coronado Global, and Lake Resources shares are rising

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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The Star Entertainment Group Ltd (ASX: SGR) share price is on ice as the casino operator’s NSW gaming licence is suspended and a $100 million fine handed down.

The Star share price was put into a trading halt ahead of the release of the NSW Independent Casino Commission’s (NICC) findings this morning. The company said:

The trading halt is necessary as otherwise trading in securities may take place in an uninformed market.

The casino operator’s stock last traded at $2.60.

Let’s take a closer look at what’s going on with the S&P/ASX 200 Index (ASX: XJO) company today.

Star stock halted amid licence suspension and $100m fine

The Star share price remains halted after the NICC revealed it’s taking the company’s casino operating licence away. The licence will be suspended from Friday morning.

It follows a damning enquiry that reportedly heard the casino operator misled regulators, dealt with suspicious junkets, and concealed gambling spending as hotel expenses.

Responding to the Bell Report, Star said it had taken “significant and urgent remedial steps” to retain its licence.

NICC will appoint a manager to allow Star’s Sydney casino to continue operating while the company’s licence is suspended. NICC chief commissioner Philip Crawford said:

If it were not for The Star’s change in attitude and our belief that it is in the public interest to protect the thousands of jobs at risk, there might have been a different outcome.

I’m hopeful incoming CEO Robbie Cooke can apply his experience and leadership skills to guide the company towards suitability under the direction of the manager.

Nicholas Weeks has been appointed as the manager until the NICC can determine if the matters identified in the Bell Review can be rectified and the company can achieve suitability.

The regulator has also slapped Star with a $100 million fine.

The company’s stock will remain halted until Wednesday unless it releases an earlier announcement.

The company is also considering the final version of Queensland’s new casino laws. Star was found unsuitable to hold a casino licence in the state last month.

Star Entertainment share price snapshot

The Star share price has underperformed this year, falling 31% since the start of 2022.

It’s also currently 30% lower than it was this time last year.

Meanwhile, the ASX 200 has fallen 12% year to date and 10% over the last 12 months.

The post Star Entertainment share price halted amid $100m fine and casino license suspension appeared first on The Motley Fool Australia.

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• Opportunities across the mining sector: Expert names ASX 200 shares to buy

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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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.

Tron (CRYPTO: TRX) has always been a polarizing crypto, primarily due to its associations with controversial cryptocurrency entrepreneur Justin Sun, who launched Tron back in 2017. But it’s getting increasingly difficult to ignore the fact that Tron has gained users and posted new transaction activity at an impressive rate throughout 2022. Could Tron finally be ready to stake its claim as a worthy Ethereum (CRYPTO: ETH) rival?

The most recent news that has investors buzzing is the announcement that Tron is now the official blockchain of the Caribbean island nation of Dominica. As a result of this, Tron will be issuing the first-ever government-backed crypto fan token. And Tron will also officially become legal tender in Dominica. There are also suggestions in the crypto community that Tron might leverage this deal to make similar deals around the Caribbean and in Latin America. If so, that would be huge in terms of Tron gaining worldwide market acceptance. So is this controversial crypto finally a buy?

Tron by the numbers

Analyzing Tron is like peeling back the layers of an onion. If you only look at the surface numbers, everything seems fantastic. Tron now has an impressive 115 million users worldwide, and has processed more than 4 billion transactions since it was founded back in 2017. Total Value Locked (TVL), which is a measure of how much activity is taking place on the blockchain, is an impressive $5.5 billion. That ranks Tron No. 2 among all blockchains, trailing only Ethereum.

In terms of overall market capitalization, Tron now ranks No. 15 in the world. It is now bigger than Avalanche (CRYPTO: AVAX), for example, which was once considered to be one of Ethereum’s major rivals. Add in the fact that the price of Tron has been surprisingly resilient in 2022, and it might appear that Tron has finally emerged as a worthy rival to Ethereum, which is down nearly 70% for the year.

Red flags?

But there are definitely some red flags about Tron. For example, there have been persistent concerns about the new Tron algorithmic stablecoin ever since it launched in May. At the time, the new stablecoin was being favorably compared to the algorithmic stablecoin for the Terra (CRYPTO: LUNA) ecosystem. A stablecoin is supposed to avoid crypto market volatility, usually via a peg to a currency like the U.S. dollar. But Terra proved to be anything but stable and it collapsed, wiping out investors. In June, the Tron algorithmic stablecoin briefly lost its peg to the U.S. dollar, causing alarm bells to go off in the heads of crypto investors everywhere. What if Tron was the new Terra? 

And then there are all the opaque, behind-the-scenes dealings involving Justin Sun, who continues to be a major influence on Tron. You don’t have to dig very deep to find some very salacious (and potentially defamatory) allegations about Justin Sun that involve the FBI, IRS, and Securities and Exchange Commission. Even if you ignore these claims, there are very real concerns that Tron might be a “security” and not a “cryptocurrency.” As a result, Tron is not available for trading on every major cryptocurrency exchange. 

Sun left Tron at the end of 2021 to become Grenada’s ambassador to the World Trade Organization (WTO). This, apparently, is what has led to Tron’s sudden prominence in the Caribbean region in 2022. Sun is continuing to give interviews about Tron and promote it on social media, even while fulfilling his diplomatic duties. 

Is Tron a buy?

That’s why I’m discounting the value of the news surrounding Tron’s expansion into the Caribbean and Latin America. I love the idea of creating “fan tokens” for tourism destinations, and it’s exciting that sovereign states around the world are experimenting with cryptocurrencies as legal tender. But somehow, deep down, something just doesn’t add up when it comes to Tron. Maybe it has to do with the fact that Tron seems to be facing an enormous amount of legal and regulatory uncertainty in both the U.S. and China, where it conducted its initial coin offering (ICO).

For now, I cannot recommend Tron as a buy. While the recent price of  $0.06 may seem enticing, I think that there are several other Layer 1 blockchain projects that are much better set up to become “Ethereum-killers” in the future. Investing in cryptocurrencies always involves risk and volatility, and investing in Tron — even at a bargain-basement price — seems to come with an extra measure of both. 

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

The post Is this controversial Ethereum-killer finally a buy? appeared first on The Motley Fool Australia.

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Dominic Basulto has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Avalanche and Ethereum. The Motley Fool Australia owns and has recommended Ethereum. 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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The Rio Tinto Limited (ASX: RIO) share price is having a tough start to the week.

In afternoon trade, the mining giant’s shares are down 3% to $93.57.

Why is the Rio Tinto share price dropping?

Investors have been selling down the company’s shares today in response to a very poor night of trade for its US listed shares on Friday.

The NYSE-listed Rio Tinto share price dropped almost 5% on Friday night after commodity prices pulled back amid concerns over a looming global recession.

In addition, it appears as though some investors may be nervous ahead of the release of the company’s third quarter update on Tuesday.

Ahead of the release, let’s take a look to see what is expected from the mining giant.

What is expected from Rio Tinto’s Q3 update?

According to a note out of Goldman Sachs, its analysts are expecting a strong quarter from Rio Tinto, with solid production growth across most commodities.

It expects the following:

• Iron ore shipments up 4% quarter on quarter (QoQ) to 83.4Mt
• Alumina production up 4% QoQ to 1,937kt
• Aluminium production up 4% QoQ to 762kt
• Bauxite production down 2% QoQ to 13.8Mt
• Mined copper up 11% to 140kt
• Titanium dioxide slag up 7% to 209kt

The market is even more positive on Rio Tinto’s quarterly performance for a number of commodities.

For example, consensus estimates are for iron ore shipments of 84.5Mt, alumina production of 1,982kt, aluminium production of 776kt, and bauxite production of 14.1Mt.

Outside this, the market will no doubt be keen to hear how inflation is impacting the company’s margins in FY 2022.

Should you invest?

Goldman continues to see a lot of value in the Rio Tinto share price at the current level.

It currently has a buy rating and $113.00 price target on its shares. This implies potential upside of almost 21% for investors over the next 12 months.

The post Own Rio Tinto shares? Here’s what to expect from the mining giant’s Q3 update appeared first on The Motley Fool Australia.

More reading

• Opportunities across the mining sector: Expert names ASX 200 shares to buy
• Do you want the good news or the bad news on the iron ore price?
• Could Rio Tinto be coming for your ASX lithium shares?
• What’s been dragging the Rio Tinto share price lower this week?
• Why has the iron ore price taken a hit this week?

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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Westpac Banking Corp (ASX: WBC) shares are dipping to the downside today amid a broad-based sell-off across ASX shares.

As we head into the afternoon, the major bank’s share price is 0.51% lighter at $23.38. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is carrying a heavy 1.45% fall.

The financials sector is one of the lesser impacted corners of the market today. Though the bank-laden sector is 1% in the red, other areas of the market — such as materials — have been struck with declines of more than 2.5%.

Today, onlookers and holders of Westpac shares might now be contemplating what to do in the lead-up to the company’s FY22 full-year results.

Banking on a solid result

Firstly, Westpac has 7 November earmarked as the day it will release its FY22 numbers to the public.

The information contained in this report could act as a catalyst for the Westpac share price, so investors are paying attention. As of today, that announcement is only three weeks away.

At the moment, expectations for the bank’s financial accounts are relatively rosy. However, this isn’t necessarily a Westpac-only phenomenon.

Instead, the improvement in sentiment likely stems from the affirmation of higher interest rates resulting in improved margins.

This affirmation was provided by Bank of Queensland Ltd (ASX: BOQ) last week upon the release of its full-year report.

Namely, the bank’s net interest margin (NIM) at the end of the financial year slotted in at 1.81%, compared to its second-half average of 1.75%. As a result, analysts — such as those at Goldman Sachs — believe Westpac shares could be in for a similar boost.

As my colleague previously covered, the broker considers Westpac the best bank to benefit from rising rates. As such, the Goldman team has assigned a $27.08 price target to the company, suggesting a further ~15% upside.

Furthermore, Refinitiv Eikon data puts the bank’s FY23 dividend yield estimate at 6%. For income investors, this could be an appetising offer to provide some form of an inflation hedge.

Westpac shares in the rearview

Looking across the big four banks, Westpac shares have been the best ones to hold so far this year.

In contrast to negative returns from the likes of Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group Ltd (ASX: ANZ), Westpac has climbed 8% into the green.

The only other big four constituent to dish out a positive return has been National Australia Bank Ltd (ASX: NAB). Though, NAB’s share price has appreciated a more modest 5.6% in 2022.

The post Are Westpac shares a buy ahead of next month’s full-year results? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank of Australia. 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 Westpac Banking Corporation. 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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Monday has proven dire for the Hawsons Iron Ltd (ASX: HIO) share price after the company announced it’s hitting the brakes on its flagship project.

The company will slow activity on the Hawson Iron Project’s bankable feasibility study (BFS) in an attempt to preserve cash.

The Hawson Iron share price has dumped more than half its value in response. It has tumbled 62.16% to trade at 14 cents at the time of writing.

Let’s take a closer look at the news dragging the Aussie iron ore developer’s stock lower on Monday.

What’s going wrong for the iron ore developer?

The Hawson Iron share price is plummeting to its lowest point of 2022 so far on disappointing news of the company’s namesake project.

The company will slow down its work on the project’s BFS as it examines rising capital expenditure costs. As a result, the study will not be completed by December as was previously expected.

Managing director Bryan Granzien said the move will allow for the analysis of the project’s capital and operating cost estimates and the review of all options for further progression, including scaling opportunities. Granzien said:

We have been left with no other choice given the current state of global capital markets and world economy.

Global inflation, rate hikes, and the war in Ukraine have brought “strong market headwinds”, said chair Dave Woodall. He continued:

We, like many companies, are being challenged by the current economic climate, falling Australian dollar, supply chain cost escalations, and restricted access to equity markets which are beyond our control.

A project slow-down is the most sensible and prudent response to preserve capital, given global cost pressures, and will allow a focus on optimising pathways in the best interests of shareholders which are reflective of deteriorating world conditions.

Woodall also said the company’s ability to raise capital over the coming year is contingent on certain resolutions to be put to shareholders at its annual general meeting (AGM). That’s set to go ahead on 15 November.

The company started working on a BFS for a 10 million tonne per annum project in 2021. The study was later expanded to look into upscaling the production profile to 20 million tonnes per annum.

Hawsons Iron share price snapshot

The Hawsons Iron share price had been on a run prior to today’s tumble.

It gained 118% between the start of 2022 and Friday’s close. It’s currently trading 20.5% lower year to date.

However, the stock is still 69% higher than it was this time last year.

The post Why did the Hawsons Iron share price just nosedive 62%? 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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Fortescue Metals Group Limited (ASX: FMG) shares are trading lower on Monday.

In afternoon trade, the mining giant’s shares are down almost 2% to $16.82.

However, if one broker is to be believed, there could be plenty more declines ahead for Fortescue’s shares.

What is the broker saying about Fortescue’s shares?

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $13.40 price target on company’s shares.

This implies approximately 20% downside for investors over the next 12 months based on where its shares are currently trading.

Why is Goldman bearish?

Goldman has just attended an investor tour of the company’s Solomon and Eliwana mines, as well as being taken through the Pilbara decarbonisation investment and strategy.

In respect to the latter, the broker commented:

Run through of recently announced US$6.2bn Pilbara decarbonisation program (>US$7bn when including the Pilbara Energy Connect (PEC) project and Iron Bridge decarb).

Combined with de-bottlenecking work to increase production at Eliwana and elevated mine replacement and sustaining capex, Goldman expects Fortescue’s capex to increase materially in the coming years. It also sees risks that costs could be even higher than it is forecasting. The broker explained:

Overall, we forecast FMG’s capex to increase from ~US$3.2bn in FY23 to ~US$4bn by FY26 on mine and haul truck replacement and decarbonisation spend, but see upside risk to our estimate.

This is expected to weigh heavily on its free cash flow and ultimately its dividends. For example, after paying a dividend of US$1.50 per share in FY 2022, Goldman expects Fortescue’s dividends to fall to 38 US cents by FY 2024, before reducing even further in the years that follow.

FY 2024’s dividend estimate equates to a yield of just 3.6% at current levels. So, if Fortescue is going to continue to trade with big juicy yields, its shares are going to have to drop materially by then.

What else?

In addition, the broker continues to highlight that the Fortescue shares trade at a material premium to rivals BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

Goldman said:

The stock is trading at a premium to BHP & RIO; c. 1.5x NAV vs. RIO & BHP at c. 0.8x & 1x NAV, c. 6x EBITDA (vs. RIO & BHP on c. 3-5x), and c. 5% FCF vs. BHP & RIO on c. 5-10%.

In light of this, its analysts are urging investors to buy BHP and Rio Tinto shares instead of Fortescue.

The post Sell Fortescue shares before they drop 20% and its dividends collapse: Goldman Sachs appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares that turned a $5,000 investment into $1 million
• 5 things to watch on the ASX 200 on Monday
• Do you want the good news or the bad news on the iron ore price?
• My Fortescue shares have returned 33% in a year. Here’s why I’m still expecting big things
• Why has the iron ore price taken a hit this week?

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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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.

The stock market has been on a steady decline since January, and investors are feeling the pinch. The S&P 500, the Nasdaq, and the Dow Jones Industrial Average are all in bear market territory after falling more than 20% from their peaks earlier this year. That can be unnerving for even the most seasoned investors, especially when nobody knows for certain how long this downturn will last.

With the right strategy, though, you can give your investments the best chance possible at surviving a bear market. And famed investor Warren Buffett has a few tips that can make these challenging times a little easier.

1. Keep a long-term outlook

It can be tough to stay optimistic right now, as stock prices continue to drop nearly every day. But the market has seen its share of slumps and managed to recover from every one so far.

Back in 2008, Warren Buffett penned an opinion piece for The New York Times, explaining why he was continuing to invest in stocks throughout the Great Recession. In it, the Berkshire Hathaway CEO wrote that:

Fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.

Nobody — even Warren Buffett — can say for certain how the market will perform in the coming weeks or months. But over the long term, it’s extremely likely to see positive average returns.

2. Take this opportunity to invest more

When stock prices are falling, throwing more money into the market may be the last thing on many investors’ minds. However, continuing to invest during bear markets can be a smart way to build long-term wealth.

During a market slump, high-priced stocks are more affordable. Some companies have seen their stock prices sink by 30%, 40%, 50%, or more so far this year, which gives investors a chance to buy high-quality stocks at a steep discount.

Buffett also encourages investors to take advantage of these buying opportunities. “In short, bad news is an investor’s best friend,” he writes for The New York Times. “It lets you buy a slice of America’s future at a marked-down price.”

3. Focus on quality companies

Simply investing during a bear market is only one part of the equation. It’s equally important to ensure you’re investing in companies that are strong enough to recover from periods of volatility. The best stocks are the ones from healthy companies with solid underlying business fundamentals — such as a knowledgeable leadership team and strong financials, for example.

Warren Buffett and his business partner Charlie Munger also follow this strategy when choosing investments. “[O]ur goal is to have meaningful investments in businesses with both durable economic advantages and a first-class CEO,” Buffett said in a 2021 Berkshire Hathaway shareholders letter. “Charlie and I are not stock-pickers; we are business-pickers.”

Investing during a bear market isn’t easy, and it’s not the right move for everyone. If cash is tight and you can’t afford to leave your money in the market for at least a few years, it may be best to avoid investing for now.

But if you can swing it, continuing to invest in solid stocks can be a smart move. Not only can you stock up on strong investments at a discount, but you could also see substantial gains when the market inevitably recovers. 

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

The post 3 tips from Warren Buffett to get you through any bear market appeared first on The Motley Fool Australia.

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Katie Brockman has no position in any of the stocks mentioned. 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 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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It’s been a rough year for Aussie investors, with the S&P/ASX 200 Index (ASX: XJO) having dived more than 12% since the start of 2022. Once bullish shareholders would be forgiven for feeling a little down in the dumps — along with their ASX 200 shares.

But if you need a reminder of the power of investing, you’ve come to the right place.

These three ASX 200 shares have turned a $5,000 investment into a considerable nest egg over the course of their listed life. Let’s take a look at the tried-and-true ASX 200 millionaire makers.

These ASX 200 shares have turned a $5,000 investment into $1m

ASX-listed company	Foundational year	Total return since	Recent value of $5,000 invested
Fortescue Metals Group Limited (ASX: FMG)	2003	85,450%	$4,277,500
CSL Limited (ASX: CSL)	1994	36,799%	$1,844,934
REA Group Limited (ASX: REA)	1999	22,822%	$1,146,100

And none of those returns has considered dividends paid out by the ASX 200 shares during their time on the market.

That’s right, a $5,000 investment in iron ore giant Fortescue in the early 2000s would have been worth a whopping $4.28 million at last close.

Aussie billionaire and Fortescue boss Andrew ‘Twiggy’ Forrest took control of the ASX-listed Allied Mining and Processing in 2003, quickly renaming it Fortescue.

Back then, the stock was trading at just – wait for it – 2 cents a share, as my Fool colleague Sebastian reports. The Fortescue share price last closed at $17.11.

Similarly, CSL floated on the ASX after its initial public offering (IPO) saw shares in the company sell for 76 cents apiece, adjusted for subsequent stock splits, as The Motley Fool Australia’s James reports.  

As of Friday’s close, one share in CSL was priced at $280.43.

Meanwhile, REA floated on the ASX under the name Realestate.com.au way back in the midst of the dot-com bubble.

It hit the Aussie bourse in December 1999 after raising $6.5 million in its IPO. Some sources suggest the company’s stock was offered for 50 cents apiece under its prospectus.

That would have been a good buy for a time. The REA share price lifted to around $1.10 before the century ended. However, it plummeted in the subsequent tech crash, dipping under 10 cents in 2001.

But those who stuck with what has since become an ASX 200 share have been rewarded in spades. The REA share price last closed at $114.61.

Key takeaway

While it’s impossible to predict where the market will go from any given point, history suggests it will ultimately go up.

The ASX 200, for instance, has posted an average annual gain of 9% over the last 30 years.

That stands true despite major downturns.

Over the last 30 years, we’ve seen the dot-com bust, the global financial crisis, and the COVID-19 pandemic, as well as plenty of smaller or geographically-limited dives.

And still, the ASX 200 has continued to meander upwards, with some shares posting gains of more than 85,000% – looking at you Fortescue.

Hopefully, that quells the minds of anxious investors and inspires others to make good use of recent volatility.

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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 positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended REA 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 Adbri Ltd (ASX: ABC) share price is having a terrible start to the week.

In early afternoon trade, the building materials company’s shares are down 20% to $1.47.

This makes the Adbri share price the worst performer on the ASX 200 index by some distance.

Why is the Adbri share price crashing?

The Adbri share price has come crashing down to earth on Monday after the company revealed the surprise exit of its CEO and provided the market with a trading update.

In respect to the former, the company revealed that CEO and managing director, Nick Miller, will be leaving the role after the Adbri board determined that it is an appropriate time for a change in leadership.

Experienced senior executive, Mark Irwin, has been appointed as interim CEO and will start in the role tomorrow. He was previously held executive roles with other ASX 200 companies such as BHP Group Ltd (ASX: BHP) and OZ Minerals Limited (ASX: OZL).

Trading update

Also putting pressure on the Adbri share price today was the release of a disappointing trading update.

The release reveals that actions taken to address inflationary pressures have not offset external headwinds. As a result, the company’s earnings have continued to be impacted by ongoing wet weather conditions affecting volume and cost, and an escalation of input and operational costs.

This means that company expects to record an underlying net profit after tax (excluding property and significant items) of $75 million to $85 million for FY 2022. This will be down 29% to 37% on FY 2021’s underlying net profit after tax of $119.1 million.

Management revealed that it is implementing a number of immediate measures in response to the current operating conditions in the hope of delivering further additional cost reductions and operational efficiency improvements. It believes the appointment of Mark Irwin as interim CEO will accelerate Adbri’s ability to deliver these initiatives in the current environment.

The post What caused this ASX 200 share to crash 20% on Monday? appeared first on The Motley Fool Australia.

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

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