The Link Administration Holdings Ltd (ASX: LNK) share price is sinking in early trading today.

Investors are selling amid news of the ACCC’s “preliminary competition concerns” over Dye & Durham’s (D&D) proposed acquisition of the administration services company.

Meanwhile, shortly before that announcement this morning, the company issued a release noting a potential litigation in an English Court.

At the time of writing, the Link share price is trading at $3.39, down 9.36% on the previous close.

In wider market moves, the S&P/ASX All Technology Index (ASX: XTX) is lifting 2.07%, while the S&P/ASX 200 Financials Index (ASX: XFJ) is up 0.78%.

Here’s how the Link share price stacks up against the two indices in recent months.

Link share price sinks amid ACCC probe

The Link share price is falling after the ACCC outlined “significant preliminary competition concerns” with Dye & Durham’s proposed acquisition of the company.

These concerns relate to the conveyancing sector. The ACCC alleges:

The proposed acquisition would align PEXA, a near monopoly provider of Electronic Lodgment Network services, with D&D, a significant supplier of software to lawyers and conveyancers, significantly increasing vertical integration in this industry.

ACCC Deputy Chair Mick Keogh said the acquisition was “relevant to everybody”.

“Given PEXA’s position as the only fully operational Electronic Lodgment Network, the ACCC will closely scrutinise any transaction that would result in vertical integration between PEXA and other industry participants,” he said.

We have significant preliminary concerns that this transaction would enable D&D and PEXA to engage in mutual preferential dealing that would hinder existing competition or raise barriers to entry in one or more markets in the conveyancing workflow.

The Link board responded with a release immediately, noting the probe is a “preliminary view….and is not a final decision”.

“The Link Group Board continues to unanimously recommend that Link Group shareholders vote in favour of the proposed acquisition,” it said.

“Accordingly, Link Group will continue to work closely with D&D to progress the competition approval process and all other regulatory approvals required for implementation.”

Litigation proceedings

In other news also possibly affecting the Link share price, the company this morning said it had been notified by solicitors that proceedings had been filed within the English High Court.

“[Link] has been notified by Harcus Parker and Leigh Day that an application for a Group Litigation Order has been filed in the English High Court,” it said.

“It is expected that the application papers will be served on [Link] shortly.”

Link notes that the claim relates to its role as “authorised corporate director” of the LF Equity Income Fund, formerly the LF Woodford Equity Income Fund.

Link started winding up the Woodford fund in 2020, returning cash to investors.

The Financial Conduct Authority (FCA) website shows a long list of history and an ongoing investigation with the fund.

Despite the pressure, the company isn’t backing down.

“[Link] will vigorously defend itself against the proceedings,” it said.

Meanwhile, the Link share price has slipped 32% into the red over the past year, and almost 40% this year to date.

The post Double whammy: Link share price sinks 9% amid ACCC probe, litigation news appeared first on The Motley Fool Australia.

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More reading

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• Green machine: Here’s why the Fortescue share price is rising 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 positions in and has recommended Link Administration Holdings Ltd. 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is heading north today.

This follows the company’s latest announcement regarding an incentive plan for its staff around the world.

At the time of writing, the travel agent shares are climbing 1.84% to $17.73.

Flight Centre set to reward its global staff

Investors are bidding up the Flight Centre share price which dropped almost 15% in the past week. Bargain hunters are taking advantage of the share price weakness following 4 trading days of consecutive losses.

After yesterday’s market close, Flight Centre advised that a number of employees will be part of a multi-million-dollar retention initiative.

Roughly 10,000 sales and support staff will receive additional share rights under the extended Global Retention Rights (GRR) program. However, this will be granted on the proviso that they continue their Flight Centre careers during the COVID-19 recovery phase.

Introduced during FY22, the GRR program aims to offset COVID-19’s impact on businesses and their people for another 12 months.

The proposed FY23 offering will see a one-time grant of share rights valued at $3,750 to each eligible staff member. For those workers who aren’t located where the company doesn’t operate share plans, a similar cash benefit will be paid.

The FY23 rights are expected to be issued to employees in August 2022. This will vest when the company releases its half-yearly results in February 2024. From there, GRR participants who meet the conditions will be able to convert the rights to Flight Centre shares.

The GRR program is expected to cost between $30 million and $35 million.

What did management say?

Flight Centre managing director, Graham Turner commented:

The GRR program is a material investment in the people who are integral to both our recovery and our future success and we believe it is contributing to the healthy overall retention rates we are seeing.

It is first and foremost a retention program that encourages our people to continue their careers with us during what we believe will be an important period in our recovery. Travel is rebounding but there is added complexity, which once again underlines the value of our people and their expertise.

Flight Centre share price summary

Since this time last year, Flight Centre shares have travelled 16% higher as the travel sector begins to recover.

Although when looking at year-to-date, its shares have remained relatively stagnant following the latest market downturn across international markets.

On valuation grounds, Flight Centre commands a market capitalisation of roughly $3.55 billion.

The post Flight Centre share price climbs amid $30m investment in staff appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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It feels like the world is in chaos at the moment.

Share markets are plunging from inflation, interest rate and energy fears. Last week, NSW and Queensland residents sat in blackouts as power companies took generators offline, and now the national regulator has suspended the wholesale electricity market.

Many experts are warning that even for long-term investors, it may take a while for everything to settle down again.

The only sure bet this year seems to be energy.

Oil and gas prices were already rising. Then Russia stamped into Ukraine in February, which deteriorated supply and turbo-charged the price hikes.

Energy inflation won’t abate for a while because the structural issues facing Australia and the world can’t be fixed quickly. 

If you want to get in on this thematic, here are two energy ASX shares one expert recommended as buys this week:

Gas prices to stay high for foreseeable future

Shares for South Australian oil and gas company Santos Ltd (ASX: STO) have enjoyed a nice 22% gain since the start of the year.

Fairmont Equities managing director Michael Gable is bullish on the stock.

“We expect gas prices to remain high this year due to the Ukraine war,” he told The Bull.

“It will take time for gas supplies in Australia to increase, which should lift company earnings.”

Gable noted that, between March and May, the Santos share price couldn’t quite break the $8.40 barrier.

But this month, it broke through, giving him confidence that it would elevate to another level.

Just a fortnight ago, analysts at Wilsons named Santos as its “preferred Australian energy exposure”.

“Santos is still one of the cheapest large-cap energy stocks on the ASX – Santos is trading with the lowest implied oil price at US$63/bbl.”

The stock that’s almost doubled this year

The fuel shortages this year have advanced the cause of renewable energies. Nations around the world are realising how valuable such sources could be to avoid their reliance on oil producers.

But the irony is that the 2022 energy crisis has made coal producers very wealthy.

Whitehaven Coal Ltd (ASX: WHC) is no exception, with its shares rising an incredible 85% since the start of the year.

Gable sees the tailwinds continuing for the company.

“Coal prices are expected to remain high due to supply constraints, and we expect this will flow through to Whitehaven’s earnings.”

He advised investors not to worry about the huge leap in the valuation.

“Despite big share price increases this year, the strong uptrend looks sustainable, as there’s no signs of it slowing at this point.”

Plenty of others agree with Gable. 

According to CMC Markets, 10 out of 13 analysts currently recommend Whitehaven shares as a strong buy.

The post 2 energy ASX shares to buy while inflation is killing everything else: expert appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) shares are charging higher in early trade today, up 1.0%

Investors will welcome the change in momentum after ASX 200 shares dropped 1.3% yesterday, bringing the benchmark’s year-to-date losses to 13.0% at Wednesday’s close.

Today’s gains come in the wake of the biggest interest rate hike delivered by the US Federal Reserve in 28 years.

Overnight the Fed announced a 0.75% rate increase, lifting the target range for the federal funds rate to 1.5% to 1.75%.

And almost every sector is joining in the rally.

ASX 200 shares by sector

Here’s how ASX 200 shares are performing this morning by sector:

• S&P/ASX 200 Energy Index (ASX: XEJ) down 0.6%
• S&P/ASX 200 Resource Index (ASX: XJR) up 1.0%
• S&P/ASX 200 Financials Index (ASX: XFJ) up 1.2%
• S&P/ASX All Technology Index (ASX: XTX)* up 1.3%  (*This index contains some stocks outside of ASX 200 shares)

So, why are markets rallying after the world’s most influential central bank upped rates by the most since 1994?

‘Flexibly hawkish’ Fed chair

ASX 200 shares are following US stocks higher, with the S&P 500 Index (SP: .INX) closing up 1.5% yesterday (overnight Aussie time) and the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) finishing up 2.5%.

The Fed’s 0.75% rate hike was higher than the 0.50% most analysts had predicted last week. But by Monday, many analysts were predicting the larger increase. This saw markets selling off earlier in the week, pricing in the outsized rate hike.

Fed chair Jerome Powell also placated markets by indicating further rate hikes of this size would be uncommon.

“Clearly, today’s 75 basis-point increase is an unusually large one and I do not expect moves of this size to be common,” he said.

Commenting on Powell’s remarks, Evercore ISI’s Krishna Guha and Peter Williams said (quoted by Bloomberg): “Powell’s press conference came across much less hawkish than the initial message. Flexibly hawkish came across as a risk-friendly combination in asset markets.”

The Fed now forecasts that the official rate will hit 3.4% in December and lift to 3.8% in 2023, significantly higher than what the central bank had forecast as recently as March.

That, as you’re likely aware, is due to hot-running inflation in the world’s top economy.

“One of the factors in our deciding to move ahead with 75 basis points today was what we saw in inflation expectations,” Powell said.

Separately, the Fed stated:

The invasion of Ukraine by Russia is causing tremendous human and economic hardship … In addition, Covid-related lockdowns in China are likely to exacerbate supply chain disruptions. The Committee is highly attentive to inflation risks.

US inflation is climbing at its fastest pace in 40 years. After slipping in April to 8.3%, from 8.5% in March, inflation surprised to the upside last Friday, with May’s figures coming in at 8.6%.

Despite the big rate increases and large monthly reductions in the Fed’s massive balance sheet, Powell indicated that the US isn’t likely to nosedive into a recession.

“It does appear that the US economy is in a strong position, and well positioned to deal with higher interest rates,” he said.

That strength should help support both US stocks and ASX 200 shares in the year ahead.

The post Why ASX 200 shares are charging higher following super-sized US Fed rate hike appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
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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 Eagers Automotive Ltd (ASX: APE) share price has jumped out of the gates on Thursday morning.

In early trade, the auto retailer’s shares are up 11% to $9.81.

This makes the Eagers Automotive share price the best performer on the ASX 200 index.

Why is the Eagers Automotive share price zooming higher?

Investors have been bidding the Eagers Automotive share price higher today after the company announced a major share buyback plan.

According to the release, the company intends to undertake an on-market share buyback of up 10% or ~25.7 million of its shares. Based on its current share price, this implies a buyback of approximately $250 million.

Management highlights that this share buyback reflects the board’s prudent focus on active capital management and is a testament to the company’s strong balance sheet.

Eagers Automotive plans to commence the on-market share buyback on 30 June for a period of 12 months. Though, it remains subject to market conditions and the company’s securities trading policy.

The release also notes that this decision to launch the buyback was driven by its strong performance in FY 2022 and the “extreme stock market volatility in recent weeks.”

The latter saw the Eagers Automotive share price hit a 52-week low on Wednesday and extend its year to date decline to 37%.

This was despite the company recently revealing that business continues to boom. So much so, it expects to record an underlying operating profit before tax from continuing operations in the range of $183 million to $189 million for the first half of FY 2022.

Management also spoke cautiously optimistic about the second half of the financial year. It commented:

While the outlook for vehicle supply, and therefore timing of vehicle deliveries to customers, remains unclear, Eagers Automotive is well positioned to deliver a strong second half performance subject to supply constraints easing.

The post This ASX 200 share is jumping 11% thanks to a $250m share buyback plan appeared first on The Motley Fool Australia.

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• ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles
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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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The Fortescue Metals Group Limited (ASX: FMG) share price is up 2% in early trading today after the company announced a major deal for zero-emission haulage trucks.

The S&P/ASX 200 Index (ASX: XJO) is also up by 0.93% at the time of writing.

Fortescue has a decarbonisation goal of being net zero in terms of its scope 1 and scope 2 emissions by 2030. A partnership with Liebherr, one of the world’s largest construction machine manufacturers, has been revealed and it’s seen as a “significant step” by Fortescue’s CEO.

Partnership deal

The Fortescue share price is on the rise after the company announced after market close yesterday that it will purchase 120 haul trucks from Liebherr, with the delivery aligned with its fleet replacement and sustaining capital expenditure forecast.

The commitment to buy 120 trucks represents around 45% of its current operations haul truck fleet.

The partnership is also about developing ‘green’ mining haul trucks for integration with the zero-emission power system technologies being developed by Fortescue Future Industries (FFI) and Williams Advanced Engineering (WAE).

The ASX mining share noted this “accelerates the opportunity to commercialise zero-emission power system technologies in heavy industry applications”.

In terms of Fortescue’s own emissions, truck haulage used approximately 200 million litres of diesel in FY21 and accounted for 26% of the company’s scope 1 emissions.

When will the trucks be delivered?

The phased supply of haul trucks is expected to start after a two-year joint development period which will enable the development and integration of Fortescue’s proprietary-owned power system into Liebherr’s truck base.

Liebherr will supply mining haul trucks to the ASX mining share in both battery electric truck and fuel cell electric truck configurations, as per Fortescue’s requirements.

It’s expected the first of the zero-emission haul units will be “fully operational” at the company’s mining sites by 2025, with another goal of having the units available for commercial sale from that time.

Leadership commentary

Decarbonising Fortescue’s operations and monetising the development efforts by FFI are two of Fortescue’s biggest focus areas right now.

Fortescue CEO Elizabeth Gaines said:

The signing of this contract with Liebherr makes a significant step in the delivery of our industry-leading decarbonisation target to achieve net zero scope 1 and 2 emissions by 2030.

We strongly believe that enhancing technology is key to addressing climate change and we are investing in renewables and new decarbonisation technologies to transform our mining fleet to run on green renewable energy.

This agreement builds on the considerable value already created through Fortescue’s acquisition of WAE and demonstrates the significant long-term opportunity for Fortescue to commercialise green power system technologies to the broader heavy duty mobility market.

Gaines went on to say these will be some of the world’s first zero-emission large mining haul trucks. She said it was aimed at establishing an important new business growth opportunity as it pivots to becoming an integrated green energy and resources company.

Fortescue share price snapshot

Prior to today’s movement, the Fortescue share price was flat in 2022, having gone up by just 0.2%.

It is down 11.5% over the past year but is up 7% over the past month.

The post Green machine: Here’s why the Fortescue share price is rising today appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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.

What happened

Shares of Tesla (NASDAQ: TSLA) popped more than 5% on Wednesday after Reuters reported CEO Elon Musk as having filed an appeal to end his 2018 agreement with the Securities and Exchange Commission (SEC) over his Twitter posts. 

Meanwhile, an analyst just forecast stronger days ahead for the electrical vehicle (EV) manufacturer.

So what

After the SEC filed a lawsuit in 2018 alleging that Musk defrauded investors through “false and misleading statements” on Twitter about having secured sufficient funding to take Tesla private, Musk and Tesla entered into an agreement with the regulator. As part of the settlement, Musk stepped down as Tesla’s chairman, and Tesla and Musk agreed to pay $20 million each in penalties while also agreeing to have the CEO’s tweets about any material business information screened by a lawyer before posting on the social media platform.

The SEC later sought a probe and subpoenaed documents, though, causing Musk to accuse it of harassment and undermining his constitutional right to free speech. Earlier this year, he sought to end the decree to get his tweets vetted, but a U.S. district judge quashed his efforts in April.

Musk isn’t relenting just yet, though. This morning, he appealed the judge’s refusal, and will ask the 2nd U.S. Circuit Court of Appeals in Manhattan to overturn the judge’s decision, according to Reuters.

Now what

As long as the decree stands, Musk and Tesla will continue to face noncompliance and other legal risks. Musk’s latest appeal shows his firm intent to end the decree and the legal overhang on Tesla.

Meanwhile, Mizuho analyst Vijay Rakesh reiterated his buy rating on Tesla stock this morning, saying he believes the company should benefit as China eases COVID-19 lockdowns and sales of EVs pick up globally. Retail sales of new-energy vehicles in China surged almost 91% year over year in May, according to data from the China Passenger Car Association.

Tesla has other challenges to tackle right now, but with analysts projecting a strong recovery in the global EV market for the second half of 2022, investors found a good reason to turn bullish about the stock today. 

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

The post Why Tesla stock jumped 5% today appeared first on The Motley Fool Australia.

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• Why Tesla shares were rising today
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Neha Chamaria 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 Tesla and Twitter. 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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The Adairs Ltd (ASX: ADH) share price has dropped a long way in 2022, down by around 58%. This has had the effect of boosting the homewares retailer’s prospective dividend yield in FY23.

But one dividend estimate puts the potential grossed-up dividend yield at more than 20%. Is that really going to happen?

Well, to truly know, we’d need a crystal ball. But let’s look to see if it’s possible.

Dividends aren’t guaranteed

Dividends are a useful way for investors to benefit from owning shares.

It gives the chance for companies (and trusts) to pay shareholders a portion of the annual profit each year.

But dividends are certainly not guaranteed. Companies can reduce payments or even cut them altogether.

Sometimes a dividend projection may simply not come true.

It may be worth noting the above things before getting to the dividend estimate for Adairs.

Projected Adairs dividend

The ASX retail share, which sells homewares and furniture, has had a tough time in FY22 with lockdowns in the first half hurting sales and profit in NSW and Victoria.

However, Morgans is currently projecting the company’s FY22 grossed-up dividend yield could be 15.8% at the current Adairs share price.

But the current financial year is nearly over – how is the FY23 projected dividend yield looking? The current projected grossed-up dividend yield in FY23 is predicted by Morgans to be 21.6%.

That would be a huge dividend yield. For instance, Morgans thinks the Fortescue Metals Group Limited (ASX: FMG) FY22 grossed-up dividend yield is only going to be 13.7%.

How is Adairs going?

Time will tell whether that dividend projection is correct or not.

However, let’s look at a trading update from Adairs. Sales are an important factor for profit generation. In the first seven weeks of FY22, Adairs said its stores’ sales were down 1.8% on the prior corresponding period, while its online sales were 9.7% higher. Mocka sales were up 14.8% year on year and Focus sales were down 7.3%.

The company is working on a number of initiatives to help grow profit. It’s trying to grow its Linen Lovers membership and increase store floor area. Online sales can keep growing.

The transition to a national distribution centre will assist in lowering costs and help the business become more efficient with stock-flow and fulfilling online orders. Management also plans to grow the Focus on Furniture business.

Being able to maintain and grow profit could be a helpful factor for the Adairs dividend and the Adairs share price, but time will tell how large the dividend yield is in FY23.

Even if the Adairs dividend were only to be two-thirds of the size of the projected dividend, then it would still be a large yield.

The post Is Adairs really going to pay a dividend yield of 21%? appeared first on The Motley Fool Australia.

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More reading

• Down 20% in a month: Top broker tips 75% upside for the Adairs share price
• What’s on the horizon for the Adairs share price in June?
• 2 ASX dividend shares that experts are tipping as buys right now
• Why was May such a shocker for the Adairs share price?
• 3 high-quality ASX 300 shares trading at 52-week lows today

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. 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 Bubs Australia Ltd (ASX: BUB) share price is storming higher on Thursday.

In morning trade, the infant formula company’s shares are up 10% to 62.5 cents.

Why is the Bubs share price pushing higher?

Investors have been bidding the Bubs share price higher today after the company released yet another update on its US supply mission.

In case you’re unaware, Bubs recently signed a deal with the US government to supply over a million tins of infant formula to help the country through a supply crisis.

This was caused by a major infant formula manufacturer suspending production following an issue. Though, it is worth noting that this manufacturer is now back up and running, so supply levels should start to improve in the coming months.

What’s the latest?

This morning Bubs revealed that it has entered into an agreement with retail giant Walmart for a shipment of 85,000 tins comprising six Bubs Infant Formula products and two Aussie Bubs Toddler Formula products. These will be distributed to approximately 800 Walmart stores in the United States.

Though, it is worth noting that this is a one-off agreement for this shipment, so nothing has really changed.

The only additional potential positive will be if Bubs can form an ongoing bricks and mortar relationship with Walmart once the crisis is over. But time will tell if US consumers will still choose Bubs when supply returns to normal and their previous favourites are back in stock.

Nevertheless, Bubs’ founder and CEO, Kristy Carr, was delighted with the news. She said:

We are tremendously excited to be forging a relationship with Walmart, with all of Bubs Infant Formula and Toddler Formula products going on shelf in approximately 800 stores across America’s Central and Mid-West regions. This store distribution builds on our existing Walmart.com sales channel. More broadly, the addition of Walmart will increase our bricks and mortar exposure in the United States over the coming days and weeks to around 4,800 stores across 35 States.

The post Bubs share price jumps 10% on Walmart agreement appeared first on The Motley Fool Australia.

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More reading

• Is there still money to be made from Bubs shares?
• Why Breville, Bubs, Terracom, and Xero shares are pushing higher today
• Bubs share price lifts as the brand readies for debut on 4,000 US shelves
• These were the best performing ASX 200 shares last week
• Why Bubs, IGO, Strike Energy, and Woodside shares are pushing higher

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The Sayona Mining Ltd (ASX: SYA) share price has plunged lower over the last 30 days.

At the time of writing, the Sayona Mining share price is 13 cents, 50% lower than it was this time last month.

For context, the broader market has also slipped in that time. The S&P/ASX 200 Index (ASX: XJO) has dropped 6.7%, while the All Ordinaries Index (ASX: XAO) has fallen 7.1%.

Let’s take a closer look at what’s been weighing on the ASX lithium share lately.

What’s going wrong for the Sayona Mining share price?

The last 30 days have been challenging for Sayona Mining.

The stock’s first blow came on 23 May when the company released the results of a pre-feasibility study at its North American Lithium operation. The study found the project’s net present value is around $1 billion. That factored in an average spodumene concentrate price of US$1,242 per tonne and was seemingly less than the market expected.

After plunging 25% over the two days following the release of the study’s results, the Sayona Mining share price was put into a trading halt on 25 May as the company conducted a $190 million institutional placement. The placement saw the company offering new shares for 18 cents apiece.

But the worst knock felt by Sayona Mining’s stock came earlier this month.

ASX lithium shares suffered through a sell-off event on 1 June. Stock in Sayona Mining tumbled 18% amid news of a bearish broker’s note on lithium prices, an Argentinian reference price, and a major electric vehicle manufacturer’s intent to mine its own lithium.

And the dip didn’t end there. The Sayona Mining share price is now nearly 41% lower than it was at the end of May. It’s also 7% lower than it was at the start of 2022 but 116% higher than it was this time last year.

The post The Sayona Mining share price has crashed 50% in a month. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Which ASX lithium shares are producing and which are not?
• Why Macquarie still sees ‘material upside’ for ASX lithium shares
• Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping
• Which ASX lithium shares are rebounding on Thursday, and which are not?
• Is this the real reason ASX lithium shares cratered on Wednesday?

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

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