The Sayona Mining Ltd (ASX: SYA) share price was a star performer in FY22 after clipping some serious gains across the year.

Shares rallied from 5.9 cents to over 15.5 cents in the 12 months to June 30 2022. At one point, Sayona was trading as high as 38 cents apiece on 19 April.

Sayona share price FY22 summary

After trading sideways for the good portion of the year, the Sayona share price caught a bid back in March following news on its North American Lithium (NAL) and Authier projects.

Both projects have a combined, measured, indicated, and inferred mineral resource of 119.1 million tonnes at 1.05% lithium oxide, a doubling of its previous estimates.

The company’s CEO, Brett Lynch said the project “is set to show significantly enhanced profitability for the benefit of shareholders”.

Investors were galvanised by the news and rallied the share to 52-week highs in the weeks following.

However, things took a turn for the worst from 14 April and the Sayona share price began to falter downward in an almost vertical fashion.

Around the same time, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) also peaked and reversed out of a long-term uptrend.

The weakness had transposed over to Sayona with the share now trading back in line with its October 2021 levels.

The relationship between the two instruments became fairly tight around April and both subsequently incurred heavy losses at the back end of FY22, as seen below.

Adding to the selling pressure was a bearish note out of Goldman Sachs illustrating its downbeat view on the outlook of lithium.

The research note swept through the lithium crowd resulting in losses throughout the basket, and Sayona wasn’t immune.

However, lithium still trades at A$104,090 per tonne, up from its May levels of A$100,149 per tonne, and just a shade off its record highs.

After a hefty run, the Sayona share price is now trading around 13% higher for the year to date.

The post How did the Sayona Mining share price perform in FY22? appeared first on The Motley Fool Australia.

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More reading

• Why did the Sayona Mining share price crash 32% in June?
• Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher
• Why BWX, Sayona Mining, Tyro, and Woodside shares are sinking
• Why have ASX lithium shares had such a lousy month in June?
• Why are Sayona Mining shares the most actively traded of the All Ords today?

Motley Fool contributor Zach Bristow 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 All Ordinaries index was well and truly out of form during the last financial year. During the 12 months, the index lost approximately 11% of its value.

Among the many movers and shakers two ASX shares stand out for very different reasons. One saw its shares smash the market with mouth-watering returns, whereas the other crashed lower and destroyed shareholder wealth.

They are as follows:

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price was the best performer on the All Ordinaries index during the 2022 financial year after rising from 16 cents to 78 cents. This represents a 388% gain and would have turned $10,000 investment into $48,750.

Booming lithium prices and excitement over the company’s massive Manono Lithium and Tin project in the Democratic Republic of the Congo were behind this gain. Though, it is worth noting that an ownership dispute relating to the project has led to the company’s shares being suspended from trade since early May.

Shareholders will no doubt be hoping that the ongoing arbitration proceedings don’t deliver a negative outcome and wipe out some of these impressive gains.

Sezzle Inc (ASX: SZL)

The Sezzle share price was the worst performer on the All Ordinaries index during the financial year after crashing from $8.81 down to a lowly 26 cents. This equates to a massive 97% decline and would have reduced a $10,000 investment into just $295.

Concerns over increasing competition in the buy now pay later (BNPL) industry, weakness in the tech sector, and the market’s sudden disdain for loss-making shares are largely to blame for this decline.

Not even a potential merger with Zip Co Ltd (ASX: ZIP) was able to support its shares. Interestingly, the Zip share price lost 95% of its value during the same period, dropping from $7.57 to 44 cents.

The post Guess which 2 ASX shares were the best and worst All Ordinaries performers of FY22 appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Block, Bubs, Infomedia, and Zip shares are dropping
• Zip share price cops 6% slashing as analyst fears grow
• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note
• Up 49% today, Sezzle share price says see you later to all-time low

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 ZIPCOLTD FPO. 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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I think the ASX share market sell-off means there are some compelling ASX All Ordinaries (ASX: XAO) shares to consider.

Investors have been keeping in mind a number of different factors including inflation and rising interest rates.

While higher interest rates do, in theory, justify lower asset prices, I think the lower valuations are attractive and worthwhile pursuing.

I love buying investments at good prices, which I believe we are now being widely presented with.

With that in mind, I rate these two ASX All Ords shares as buys:

GQG Partners Inc (ASX: GQG)

GQG is one of the largest fund managers on the ASX, with a market capitalisation of around $4 billion, according to the ASX.

In terms of how much better value it is, the GQG Partners share price has fallen by 27% over the last six months and is currently $1.34.

The business generates a “vast majority” of its net revenue from management fees rather than performance fees. Therefore, changes in the funds under management (FUM) can have a major impact on revenue, net profit after tax (NPAT) and cash flow. It also affects the dividend because the company has committed to paying dividends of 90% of its distributable earnings.

The monthly FUM update for May 2022 showed FUM rose US$4.2 billion to US$94.6 billion. GQG’s latest quarterly update for the three months to 31 March 2022 showed net inflows of US$3.4 billion. That quarterly update included commentary about business momentum across multiple geographies and channels.

Estimates on CMC Markets indicate a possible 2022 dividend of 13.1 cents, equating to a dividend yield of 9.8%. I think there’s a lot to like about this ASX All Ords share, with its growing FUM, big dividend yield, and expanding reach.

Altium Limited (ASX: ALU)

Altium is a leading electronic PCB design software and it’s becoming increasingly involved in the wider electronics industry.

Since the start of the 2022 year, the Altium share price has fallen around 35%. For a quality company like Altium, I think a price of under $30 is attractive.

There are several things that attract me to this business. It has a goal of being the dominant market leader of its sector. By FY26, it hopes to be generating US$500 million of revenue, with 100,000 subscribers. In 2025 it wants 95% of its revenue (excluding China) to be recurring revenue.

Altium can benefit from the huge surge in electronics in various places, such as cars. The company says that printed circuit boards are “central to the design and realisation of electronics and smart connected products”.

It has numerous blue-chip customers including Tesla, NASA, Boeing, Cochlear Limited (ASX: COH), Alphabet, Amazon.com, Disney, Apple, Microsoft, Broadcom and many more.

The company is expecting to grow its profit margins as it gets bigger and it’s also steadily growing its dividend. Altium is also debt-free.

I’m quite excited by the rapid client adoption of its cloud offering called Altium 365 which connects different parts of the electronics value chain, as well as Altimade.

Altimade “provides cloud-based smart manufacturing that will improve productivity and manufacturability of electronics hardware and manage the supply chain of components as well as production risk”.

The post Why I think these 2 ASX All Ords shares are at bargain prices in July appeared first on The Motley Fool Australia.

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More reading

• 5 worst ASX energy shares of FY22
• 2 appealing ASX All Ords growth shares getting discounted today
• 5 best ASX All Ords mining shares in FY22
• What percentage of Altium shares are owned by insiders?
• Here are the top 10 ASX shares today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Altium, Amazon, Apple, Cochlear Ltd., Microsoft, Tesla, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Cochlear Ltd., and Walt Disney. 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 Fortescue Metals Group Limited (ASX: FMG) share price is in the green today. Its rise came as data outlining a record trade surplus of nearly $16 billion – driven by coal and iron ore – hit headlines.

The Fortescue share price is trading 3.58% higher at $17.07 at the time of writing.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.65% while the S&P/ASX 200 Materials Index (ASX: XMJ) has gained 2.16%.

Let’s take a closer look at today’s news from the Australian Bureau of Statistics (ABS).

Fortescue share price lifts on Thursday

The Fortescue share price lifted today after the ABS released data outlining a notable jump in metal ores and minerals exports in May.

Approximately $14.5 million worth of metal ores and minerals were exported from Australia in May – a 2.8% month-on-month increase.

That helped boost Australia’s total trade surplus to $15.965 billion in May – more than 20% higher than that of April. In that time, exports rose 9.5% while imports lifted close to 6%.

However, it was coal that was the major driver of the country’s record trade surplus. The export value of the black rock saw a 20% month-on-month increase – coming in at more than $14.6 million in May.

Today’s Fortescue share price’s gain also follows a poor session for its major commodity’s value. The iron ore futures price fell 1% overnight to reach US$112.33 a tonne.

And the future could bring more downfalls for the price of iron ore. Commonwealth Bank of Australia (ASX: CBA) senior economist Belinda Allen was quoted by the Australian Financial Review as saying:

We expect China to reduce steel output later this year, similar to what occurred in 2021. As a result, we expect further falls in the price of iron ore from here.

Other ASX 200 iron ore giants are also in the green on Thursday. The share prices of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are trading 2.78% and 3.93% higher respectively.

The post Fortescue share price lifts with Australia’s record high trade surplus appeared first on The Motley Fool Australia.

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More reading

• Is now the time to be buying beaten down ASX 200 mining shares?
• 5 ASX dividend shares with the highest yields in FY22
• These ASX 200 mining shares are bouncing back on Thursday
• ASX hydrogen shares announced some big news last month, so why did so many end June in the red?
• ASX lithium stocks avoid share price shock amid commodities lashing

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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Tabcorp Holdings Limited (ASX: TAH) has outlined how it plans to compete with some of its online rivals.

Tabcorp shares are currently jumping 0.95% and are trading at $1.06. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.41% today.

Let’s take a look at what Tabcorp is planning.

Tabcorp plans

Tabcorp is planning to create a new app in time for the Spring Racing season to compete with some competitors, according to the Financial Review.

The company’s CEO Adam Rytenskild reportedly wants to compete with online gambling competitors including Sportsbet and Ladbrokes. In comments cited by the publication, he said:

There’s still too many people on blue and red apps … sitting in pubs

Rytenskild was appointed as the managing director and CEO from 1 June 2022 on a fixed salary including super of $1.5 million.

This followed the company offloading Lottery Corporation Ltd (ASX: TLC). Rytenskild has more than 20 years of experience in the betting entertainment industry.

In a recent investor day presentation, Tabcorp said 65% of turnover is digital. However, the company has about 25% of the digital market share. The company has 641,000 active users and is found in more than 4,000 venues in Australia.

Of the company’s total bettors, 60% bet digitally as well as in venues known as “omni-channel bettors”.

Tabcorp said these customers are approximately “2 times more valuable than digital only customers, adding:

They engage more frequently and are less subject to churn.

As my Foolish colleague Sebastian reported today, Tabcorp was one of the highest yielding ASX dividend shares in the 2022 financial year.

The company provided a fully franked dividend of 13.5 cents per share during the financial year.

Tabcorp share price snapshot

Tabcorp shares have gained 14% in the past year, while it is up nearly 11% year to date.

In contrast, the ASX 200 has shed nearly 10% in a year.

The company’s share price has jumped about 32% in the past five years.

The post Own Tabcorp shares? Here’s the company’s plan to step up against the competition appeared first on The Motley Fool Australia.

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More reading

• 5 ASX dividend shares with the highest yields in FY22
• 5 best ASX All Ordinaries shares in June
• These were the best performing ASX 200 shares in June
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Are potential suitors getting ready to take another punt on the Tabcorp share price?

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The Ethereum (CRYPTO: ETH) price went on quite a ride during the 2022 financial year ending 30 June.

It brings to mind Charles Dickins’ first line (or the first part of that first line) in A Tale of Two Cities. Namely, “It was the best of times, it was the worst of times…”

By the time the smoke cleared, the Ethereum price was down 55% for the 12-month period, according to data from CoinMarketCap.

How did it get there?

First, the best of times.

Ethereum price hit all-time highs in FY22

Ethereum, the world’s number two token by market cap, kicked off FY22 trading for US$2,274 after falling sharply from its May 2021 peaks.

From there the cryptocurrency went charging higher for the next three and a half months, though not in any kind of straight line, mind you. By 16 November the Ethereum price had reached a new record high of US$4,892, which remains the virtual high water mark today.

It was a similar story across most risk assets, including Bitcoin (CRYPTO: BTC), which hit its own record highs on 10 November.

Not coincidentally, mid-November also saw the tech-heavy NASDAQ reach all-time highs.

Which brings us around to the worst of times.

Risk assets hammered amid rising interest rate expectations

By mid-November the first signs of persistent and unexpectedly high inflation figures began to seep through. And investors began lightening their holdings of risk assets in anticipation of some sharp interest rate hikes to come.

This saw the NASDAQ tumble 31% from its November peak through to 30 June 2022.

The more volatile Ethereum price fell more than twice that hard, ending the financial year trading for US$1,018, down 79% from its 16 November levels.

The falls came despite progress being made transitioning the Ethereum blockchain from proof-of-work to proof-of-stake.

The switchover, years in the planning and now dubbed ‘the merge’ will increase the speed and lower transaction costs on the blockchain. Importantly, it will also greatly reduce the crypto’s carbon footprint as the proof-of-stake protocol requires far fewer energy hungry computers.

Supporters hope the merge will eventually help the Ethereum price outperform once more.

The post Why FY22 was the best and worst of years for the Ethereum price appeared first on The Motley Fool Australia.

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More reading

• The Ethereum price collapsed 47% in June. Here’s why
• How did the price of crypto assets perform in June?
• Ethereum price falls after hackers begin laundering $100 million bridge exploit
• What one tech guru thinks of the current crypto market
• Why Bitcoin, Ethereum, and Dogecoin are down today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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 Telstra Corporation Ltd (ASX: TLS) share price was a relatively positive performer during the last financial year.

The telco giant’s shares started the financial year at $3.76 and eventually closed the period 2.4% higher at $3.85.

As a comparison, the ASX 200 index lost 10% of its value during the 12 months.

Why did the Telstra share price outperform the market in FY22?

There were a number of catalysts for the Telstra share price outperformance.

This includes the telco sector’s defensive qualities, which have helped Telstra’s shares avoid the worst of the market volatility.

In addition, the company’s improving performance, its return to underlying growth, and the announcement of its new T25 strategy have given its shares a major boost.

In respect to the latter, the T25 strategy will be replacing the highly successful T22 strategy. But unlike the T22 strategy, which was based on transforming the company, T25 will be about driving growth.

Telstra’s CEO, Andy Penn, explained:

T25 marks our transition from transformation to growth, from a strategy we had to do, to a strategy we want to do to focus on growth. It is a strategy that builds on the strong foundations we have built over the last three years and remains focussed on what matters most – our customers, our people, our shareholders and on supporting the creation of a vibrant digital economy for Australia.

Through the strategy, Telstra is aiming to deliver sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share (EPS) compound annual growth rates between FY 2021 and FY 2025.

Can the Telstra share price keep rising?

The good news is that Morgans appears to believe the Telstra share price outperformance can continue.

Its analysts currently have an add rating and $4.56 price target on the company’s shares. This implies potential upside of 17% for investors over the next 12 months.

The post Why did the Telstra share price beat the market in FY22? appeared first on The Motley Fool Australia.

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More reading

• Telstra share price rises as Optus folds to inflation
• 2 ASX dividend shares that analysts are tipping as buys in July
• The Telstra share price outperformed the ASX 200 in June
• Could July be a good month for the Telstra share price?
• Telstra share price slides as Optus exec ramps up calls for TPG deal to be canned

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 positions in and has recommended Telstra Corporation 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 S&P/ASX 200 Index (ASX: XJO) has had a bouncy, yet positive, day of trading so far during this Thursday’s session. At the time of writing, the ASX 200 has risen a healthy 0.42% to just over 6,620 points after nearly dropping back into the red just before lunchtime.

But rather than trying to figure all of that out, let’s instead take a deeper dive into the shares that are currently topping the ASX 200’s share volume charts today, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Zip Co Ltd (ASX: ZIP)

ASX 200 buy now, pay later (BNPL) share Zip is our first company to take a look at today. So far this Thursday, a hefty 9.28 million Zip shares have been bought. That’s despite no news out of Zip so far during this trading session.

However, as we covered this morning, that hasn’t stopped the Zip share price from taking a hammering today. The BNPL share is presently down a nasty 7.82% at 53 cents a share. This may have been caused by the bearish note out of broker UBS this morning, rating Zip shares as a “sell”. 

Santos Ltd (ASX: STO)

Santos is our next cab off the rank today. This ASX 200 oil share has had a sizeable 11.67 million shares swap hands as it currently stands. There hasn’t been any major news or announcements out of this energy share. 

So we can probably blame this high volume on the weighty sell-off we’ve seen with Santos today. The company is now down by 1.78% at $6.90 a share. That puts the company’s losses over the past trading week at more than 5.8%. 

South32 Ltd (ASX: S32)

Finally today, we have ASX 200 miner South32 as our most traded share. This Thursday has seen a notable 16.68 million South32 shares trade on the share market thus far. Fortunately for investors, South32 is having the opposite problem to Santos. 

Its shares are on fire today, presently up a pleasing 4.4% to $3.86 each. There’s been no news out of the miner, but most miners are doing well on the market today amid a recovery in commodity prices overnight.     

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

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More reading

• Is now the time to be buying beaten down ASX 200 mining shares?
• Why Block, Bubs, Infomedia, and Zip shares are dropping
• These ASX 200 mining shares are bouncing back on Thursday
• Zip share price cops 6% slashing as analyst fears grow
• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. 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 S&P/ASX 200 Energy Index (ASX: XEJ) rose by 25.5% over the 2022 financial year. That’s an impressive outperformance on the benchmark S&P/ASX All Ordinaries Index (ASX: XAO), which lost 11% in value over the same period.

The commodities boom helped ASX energy shares in FY22. The price of crude oil rose by about 40% and the price of natural gas increased by about 55%.

Plus, geopolitical unrest over the Russian invasion of Ukraine, and lockdowns in China, caused many supply chain issues which boosted the fortunes of many ASX energy shares.

But not every share had a great time in FY22.

Here are the five worst-performing ASX energy shares for FY22, according to Capital IQ figures.

• Washington H. Soul Pattinson and Co Ltd (ASX: SOL) down 29.7%
• Wesfarmers Ltd (ASX: WES) down 28.5%
• Carnarvon Energy Ltd (ASX: CVN) down 26.4%
• Energy Resources of Australia Limited (ASX: ERA) down 25.5%
• Strike Energy Ltd (ASX: STX) down 22.7%.

Why these ASX energy shares tanked

Capital IQ categorises investment house Soul Patts as an ASX energy share because it owns 39.9% of New Hope Corporation Limited (ASX: NHC), which is a diversified energy company in southeast Queensland.

As my fellow Fool Tristan reported this week, Soul Patts has fallen out of favour with ASX investors. While New Hope had a great year — its share price doubled in FY22 — other ASX shares that Soul Patts owns took a dive. Example: Brickworks Limited (ASX: BKW) — its share price dropped 26%.

The conglomerate Wesfarmers is also categorised as an ASX energy share because of its chemicals, energy, and fertilisers division. One of its more recognisable brands is gas producer and retailer Kleenheat.

Tristan reported on the near 30% drop in the Wesfarmers share price in FY22 this week, too.

Wesfarmers reported in its half-year FY22 results that net profit after tax (NPAT) had fallen 14.2% to $1.2 billion. This was largely due to store closures and trading restrictions during COVID-19.

What about Carnarvon and Energy Resources?

Carnarvon Energy is an oil and gas explorer. It’s not yet generating revenue, and this combined with the rising interest rate environment has probably put some investors off.

In January, Carnarvon announced that its drilling at the Buffalo-10 well found the oil column to be residual and uncommercial. In April, the company announced that drilling at the Apus-1 well did not yield a commercial hydrocarbon pool.

Energy Resources of Australia is one of the nation’s largest uranium oxide producers. It operated the Ranger mine, Australia’s longest continually operating uranium mine, in the Northern Territory.

The Energy Resources share price has been in a steady decline since September 2021. That’s also when the company announced cost and schedule overruns with its Ranger Project rehabilitation program.

The program is being undertaken as part of the mine’s closure. In October, the company told the ASX the overruns would be “material” but they weren’t yet ready to reveal numbers.

The following month, the company’s CEO and managing director Paul Arnold resigned to take a job at Rio Tinto Limited (ASX: RIO). He was formally replaced in February 2022 by Brad Welsh.

In February, the company said the rehabilitation was going to cost between $1.6 billion and $2.2 billion — up from the initial estimate in 2019 of $973 million.

It also said the estimated completion date could be as late as the fourth quarter of 2028.

That same month, Energy Resources reported its full-year results for FY21. It recorded a net loss after tax of $650 million for 2021 compared to a net profit after tax of $11 million in 2020. A big part of this was the increasing costs of the rehabilitation program.

And the Strike out?

The Strike Energy share price experienced a massive 56% decline in value between August and December 2021. It recovered in 2022 but remained in the red by more than 22% at the end of FY22.

The decline in August began after the company announced problems at its West Erregulla 5 (WE5) well.

In October, Strike disappointed the market with its maiden Perth Basin Gas Reserve, which revealed gross gas reserves “significantly below” the company’s guidance, as my fellow Fool James reported.

Although Strike released a number of positive announcements, it appears investors lost interest in the ASX energy share in the first half of FY22 before reengaging in the second half.

The post 5 worst ASX energy shares of FY22 appeared first on The Motley Fool Australia.

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More reading

• Here’s why Brickworks might be one of the ASX’s best dividend shares
• Is now the time to be buying beaten down ASX 200 mining shares?
• 2 appealing ASX All Ords growth shares getting discounted today
• These ASX 200 mining shares are bouncing back on Thursday
• Analysts name 2 excellent ASX dividend shares for income investors to buy

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 positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers 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 DGL Group Ltd (ASX: DGL) share price is heading south today.

This comes despite the chemical company announcing it has expanded its manufacturing capabilities following the recent acquisition.

At the time of writing, DGL shares are down 1.15% to $2.59 apiece.

It’s worth noting that its shares have lost more than 8% in the last two days.

DGL strengthens service offering to customers

According to its release, DGL advised it has strategically acquired silicone-based manufacturer, Flexichem Australia for $6.2 million.

Based in the Adelaide, Flexichem is a family-owned business specialising in the development and manufacturing of silicone and non-silicone chemicals. These are used in a number of diverse industries such as food processing, printing, automotive, agrochemical, mining and personal care.

The agreed purchase price represents a valuation of 4.5 times the last twelve months of Flexichem’s normalised EBITDA.

The deal is expected to be funded by $4.65 million in cash and $1.55 million in DGL shares.

DGL stated that Flexichem will vertically integrate into DGL’s manufacturing operations and strengthen service to its customer base.

It is estimated the acquisition will add 1,200 of additional chemical manufacturing capacity.

DGL founder and CEO, Simon Henry commented:

The acquisition of Flexichem expands our manufacturing capabilities into South Australia, adds talent and IP on silicone-based manufacturing into DGL, and also opens up new export markets.

While the release is positive in nature, the DGL share price is tracking the S&P/ASX 200 Industrials (ASX: XNJ) sector’s fall.

The index is down 1.09% to 6,252.6 points today after chopping and changing the past few days.

DGL share price summary

It’s been an impressive time since DGL debuted on the ASX in late May with a $1 price tag.

The company has made strong progress over the 14 months which has been reflected in the DGL share price.

When looking from this time last year, its shares are up by more than 80%.

On valuation grounds, DGL presides a market capitalisation of roughly $770.57 million.

The post DGL share price slips on strategic $6.2 million acquisition appeared first on The Motley Fool Australia.

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More reading

• 5 worst ASX energy shares of FY22
• Why did the Immutep share price plummet 31% last month?
• Here’s why Brickworks might be one of the ASX’s best dividend shares
• Is now the time to be buying beaten down ASX 200 mining shares?
• Why Block, Bubs, Infomedia, and Zip shares are dropping

Motley Fool contributor Aaron Teboneras 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 DGL Group Limited. The Motley Fool Australia has recommended DGL 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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