If you’re planning to add some growth shares to your portfolio in November, then you might want to look at the shares listed below.

Both of these ASX growth shares have been tipped as buys recently. Here’s what you need to know about them:

Nearmap Ltd (ASX: NEA)

The first ASX growth share to consider buying is this leading aerial imagery technology and location data company. Nearmap’s geospatial map technology gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.

Nearmap has been experiencing strong and growing demand for its offering, particularly in the North American market. This led to Nearmap delivering a 26% increase in Annual Contract Value (ACV) to $128.2 million in FY 2021. This was a touch ahead of its guidance for the year.

Looking ahead, management continues to target ACV growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

One leading broker that is a big fan of the company is Morgan Stanley. It has an overweight rating and lofty $3.20 price target on Nearmap’s shares.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its key solution – Nitro Productivity Suite.

It provides businesses of all shapes and sizes with integrated PDF productivity and eSignature tools through a horizontal, SaaS and desktop-based software suite. This allows users to productively manage and process documents for many functions including editing, collaboration, storage and electronic signing.

As with Nearmap, demand has been growing rapidly in recent years and has continued in FY 2021. For example, its recent third quarter update reveals that management expects its annual recurring revenue (ARR) to be in the range of US$39 million to US$42 million this year. This represents annual growth of 40% to 50%.

Bell Potter is a fan of Nitro. It currently has a buy rating and $4.50 price target on the company’s shares.

The post Brokers rate these ASX growth shares as buys appeared first on The Motley Fool Australia.

More reading

• Zip (ASX:Z1P) and these ASX tech shares are rated as buys
• 2 exciting small cap ASX tech shares analysts love
• These were the best performing ASX tech shares in October
• The Nearmap (ASX:NEA) share price is up 20% in 3 weeks. What’s happening?
• Why Life360, Nitro, Reliance Worldwide, and Uniti shares are charging higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Poor Appen Ltd (ASX: APX) shareholders.

The stock has been a nightmare over the past 12 months, as the price plunged more than 70%. 

Appen shares exceeded the $40 mark in August 2020, but lagged at $10.85 on Tuesday afternoon.

That’s after the artificial intelligence data provider returned a staggering 2,200% in the 5 years prior. 

Those that are still hanging on will be wondering “Where to from here?”

And those investors on the sidelines might be thinking the technology stock could now be a bargain buy.

Some experts recently offered their opinion on whether now is the time to grab Appen shares:

Appen has a lot of catching up to do

Burman Invest chief investment officer Julia Lee said that it’s important for investors to focus on Appen’s long-term prospects.

She pointed out that the last financial update saw Appen pare back the earnings forecast for the current year to $81 to $88 million.

But even after that downgrade, the business has a lot of work to do for the rest of the year to “catch up” to expectations.

“It means they really need to shoot the lights out in the first half, because in the first half of this year they only saw earnings of $27.7 million,” Lee told Switzer TV Investing.

“So extremely high expectations for the second half.”

This situation made Appen shares “extremely high risk”, according to Lee.

Many eggs in one basket

Appen’s clientele, which includes the large US technology giants, is also potentially problematic.

After COVID-19-induced spending reviews, there is a risk that some of those clients might bring AI data work in-house, rather than outsource to Appen.

“And the thing with Appen is that the top 5 clients make up more than 90% of revenue,” said Lee.

“So if it loses one of them or sees a decrease in revenue from one of those clients, it does have a big impact.” 

Appen shares are trading at a discount

On the flip side, Catapult Wealth portfolio manager Tim Haselum is rating Appen shares as a “buy”.

“It has strong rebound potential,” he said on The Bull.

“We like the company and believe it’s undervalued.”

Haselum recognised the company’s acquisition of mobile location data provider Quadrant Global and has faith that demand for AI services will remain “strong”.

“This language technology and data services company has reduced guidance,” he said.

“But the stock is trading at a discount on these valuations, in our view.”

The post Can Appen (ASX:APX) shares rise to glory again? appeared first on The Motley Fool Australia.

More reading

• Alcohol and intelligence: 2 ASX shares on the way up
• These ASX shares could be quality options for growth investors
• 10 top ASX shares to buy in November
• Is the Appen (ASX:APX) share price a serious bargain?
• Move over Appen: A new artificial intelligence stock to list on the ASX

Motley Fool contributor Tony Yoo owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Fidelity International portfolio manager Kate Howitt reveals her 2 biggest holdings right now, and how they’re taking advantage of the decarbonisation and online shopping trends.

Investment style

The Motley Fool: How would you describe your Fidelity Australian Opportunities fund to a potential client?

Kate Howitt: What I’m trying to do is a “one stop shop” for Australian equities. It’s a very broad form of portfolio construction. I’ve got really large stocks, I’ve got really small stocks, I’ve got growth stocks, I’ve got value stocks, I’ve got mature stocks, I’ve got early stage stocks. 

Australia is such a narrow market that I’m trying to pick the best of all of those sorts of opportunities, rather than have a really narrow approach… If you’re a global manager or something, you can really narrow down and say, “I’m looking for this precise sort of opportunity.” But in Australia, I’m trying to find the best of all the opportunities out there and keep it diversified so that it’s an all-weather fund. So it will do well when the market is doing well, but hopefully not do as badly when the market is falling.

ASX shares taking up the most portfolio space

MF: What are your two biggest holdings?

KH: Right now, it’s Macquarie Group Ltd (ASX: MQG) and Goodman Group (ASX: GMG).

There’s that old saying that in a gold rush, you don’t want to own the gold miners, you want to own the guys selling picks and shovels… That’s how I think about both of these stocks.

Macquarie is a “picks and shovels” play on decarbonisation. 

We know that over the next 25 years, the global economy has to spend at least $100 trillion to decarbonise. That is a lot of investment, that’s a lot of projects, and you are going to have developers, vendors, governments, a lot of counterparties around all of those projects, and all of those projects need a trusted advisor or a seed capital provider. So Macquarie has just been setting itself to be right at the heart of a huge and growing investment pipeline that the world’s got.

They have been focusing their recruitment, not on finance people who can do a DCF, that’s become fairly commoditised. They’re focusing on scientists, engineers — if they understand the real nuance of how these new and emerging technologies work, then they’ll be better placed to assist on the financing of that. So that just has a very, very long runway of growth ahead of them. 

Goodman is a “picks and shovels” play on e-commerce and the shift towards sustainability. 

If I buy something off Amazon.com Inc (NASDAQ: AMZN), then it comes in a box from the US. That’s different to if it goes on a pallet and then gets stuck on the shelves of Woolworths Group Ltd (ASX: WOW)… All of those e-commerce players, Amazon, and everyone competing with Amazon, need to have distribution centres and they need to be close [to the city] so that they can give me my next-day delivery or same-day delivery.

Goodman was early on to this trend and has been getting their footprint on these urban infill locations. And now the trend is moving to densification. These things used to be sheds. Now they’re very sophisticated multi-story distribution centres or data centres. So the build quality is going up. It’s a kind of premiumisation strategy of this [industrial] land. 

Also, that premiumisation part of that is also making these things more sustainable. Lowering the carbon intensity of setting them up so that the distribution operations can be lower carbon intensity. Goodman is another way to get exposure to that trend too.

The post 2 ASX shares cashing in on decarbonisation and online shopping appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX growth shares to buy
• Why is the Bendigo Bank (ASX:BEN) share price having such a tough time of late?
• These 6 ASX shares are going ex-dividend this week
• Why is the Macquarie (ASX:MQG) share price sliding lower today?
• 5 things to watch on the ASX 200 on Monday

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns shares of Amazon and Macquarie 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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The massive Chinese property developer Evergrande has managed to find some money as it looks to pay what’s owed to investors.

According to reporting by the BBC, Evergrande has managed to rustle up US$145 million.

How has Evergrande raised US$145 million?

The Chinese business has been looking to sell some of subsidiaries and stakes in businesses that other parties may be interested in buying. It has managed to make a sale.

It has sold a 5.7% stake in media business HengTen Networks Group which produces films and television shows, and operates a streaming platform, according to reporting by the BBC.

The US$145 million sale is very close to how much it should be paying this week in overdue interest payments, being US$148 million.

Despite all the issues and missed payments that Evergrande has seen, it reportedly hasn’t officially defaulted yet because of the 30-day grace period for the payments.

Evergrande used to own a majority stake of HengTen at the start of the year, but it has been selling down its stake over the year. For example, Tencent was one of the buyers, purchasing a 7% stake for US$266 million. Tencent now owns around a quarter of the business.

The BBC also reported that Evergrande was successful at selling its UK-based electric motor making business, Protean, recently.

Evergrande still has a large debt pile of US$300 billion, with other interest payments that are coming due.

Other Chinese developers facing issues

There are concerns about several Chinese real estate businesses. Evergrande isn’t the only one.

Last week, it was reported that Kaisa Group Holdings Ltd was another Chinese developer that had missed a payment to investors. Kaisa Group reportedly said it was “facing unprecedented pressure on its finances due to a challenging property market”.

Other Chinese property businesses that are also facing financial issues and have missed payments include: Fantasia, Sinic and China Properties Group.

Uncertainty hovers over iron ore

China is the dominant buyer of iron ore from Australia, and property developers are big users of Australian iron ore through their vast steel consumption.

Brokers think that Chinese-related issues could see the iron ore price fall even further, despite its heavy decline of the last six months.

The broker UBS thinks that iron ore could fall to the US$80s over the next year or two. The expectation of lower iron ore prices is why it currently is bearish on the profitability of the ASX’s biggest iron ore miners.

UBS rates Fortescue Metals Group Limited (ASX: FMG) as a sell price with a price target of $15. The Rio Tinto Limited (ASX: RIO) share price is also rated as a sell with a price target of $79. The broker is neutral on BHP Group Ltd (ASX: BHP), with a price target of $38, thanks to the strength of its other commodities as well as the recent sale of one of its coal assets.

The post Evergrande raises US$145 million, is it saved from default? appeared first on The Motley Fool Australia.

More reading

• 2 blue chip ASX 200 shares analysts love
• Is the iron ore price set to rebound next month?
• These are the 10 most shorted ASX shares
• Is the Rio Tinto (ASX:RIO) share price a buy for its 21% dividend yield?
• ASX 200 companies take note – global carbon credit trades soaring

Motley Fool contributor Tristan Harrison owns shares of 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 Bruce Jackson.

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There are a number of S&P/ASX 200 Index (ASX: XJO) dividend shares that may be good options for income.

Businesses are not rated as a buy by analysts just because it pays a dividend. Analysts also want to look for ASX shares that are good value as well.

At the moment, these two ASX 200 dividend shares that are rated as buys:

Magellan Financial Group Ltd (ASX: MFG)

Magellan is one of the largest fund managers on the ASX. It’s currently rated as a buy by the broker Macquarie Group Ltd (ASX: MQG) with a price target of $38. The broker thinks that Magellan is looking good value because of its lower earnings multiple and its higher dividend yield.

In FY22, Macquarie thinks that Magellan is going to pay a total annual dividend of $2.27 per share. That translates to a partially franked dividend yield of 6.4%.

Whilst the latest funds under management (FUM) update was just one month, it shows a reversal of the recent trend of declines. Over the month of October 2021, Magellan experienced a FUM increase of $1.5 billion despite the strengthening of the Australian dollar against the US dollar.

The ASX 200 dividend share recently said at its annual general meeting (AGM) that away from its global equities franchise, it has around $30 billion of FUM across five areas: infrastructure, Australian equities (Airlie), ESG/sustainable, MFG Core Series and FuturePay.

The fund manager said that each of those segments are at a different stages of their development and each has “significant” growth opportunities. It said that each represents a differentiated offering and each addresses a particular need or helps solve a particular problem. Magellan is also confident about the potential growth of its external investments like Barrenjoey and Guzman y Gomez.

Centuria Industrial REIT (ASX: CIP)

This is a real estate investment trust (REIT) which looks to own a quality portfolio of industrial properties across Australia.

It’s on the lookout for properties located in land constrained urban infill markets, where tenant demand outstrips the forecast supply.

Centuria Industrial REIT has been focused on properties that lend themselves to last-mile transport logistics and distribution tenant customers and benefit from “strong” tailwinds such as e-commerce adoption and supply chain onshoring.

For example, it recently announced it has acquired four industrial assets for a collective price of $129.4 million. The ASX 200 dividend share outlined that those four assets had an initial yield of 4% and the weighted average lease expiry (WALE) was 3.5 years.

The brokers at Macquarie Group Ltd (ASX: MQG) think that the REIT is a buy, after noting the recent acquisitions announcement.

Macquarie believes that Centuria Industrial REIT could pay a distribution of 17.3 cents per unit in FY22 and 18.7 cents per unit in FY23. That translates to forward distribution yields of 4.6% and 5% respectively.

In Centuria Industrial REIT’s FY22 first quarter update, it reaffirmed its FY22 funds from operations (FFO) guidance of no less than 18.1 cents per unit and distribution guidance of 17.3 cents per unit.

The post 2 ASX 200 shares that could be top buys for dividends appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• The IAG (ASX:IAG) share price has gone backwards so far in 2021. Here’s why
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why is the Vanguard MSCI Index International Shares ETF (ASX:VGS) off to such a great start in November?

Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a couple of ASX technology stocks that have been punished by investors in recent times.

But have those tech shares suffered enough? Are their current low prices actually undervaluing the underlying businesses?

A pair of experts took a look at Pushpay Holdings Ltd (ASX: PPH) and the much-maligned Nuix Ltd (ASX: NXL) to answer this dilemma.

Pushpay has picked all the low-hanging fruit

Kiwi company Pushpay provides software for US churches to manage donations from their congregations.

After tripling its share price in less than 4 months coming out of the COVID-19 crash last year, it has just gone sideways. The stock is down 2.7% over the past 12 months.

According to Burman Invest chief investment officer Julia Lee, the slowdown came because many of the big churches had already been signed up. It then took more effort and leg work to add smaller clients to sustain growth.

“During COVID-19 and lockdowns, it looked like their competitors were growing at a much faster rate,” she told Switzer TV Investing. 

“But it does look like growth is back on the agenda. They’re looking to capture 25% of the US Catholic Church.”

Lee added Pushpay also recently made a complementary acquisition in a video streaming provider, which would allow clients to broadcast religious services.

However, she wouldn’t wholeheartedly buy in until more of its sales growth in the post-COVID world is revealed.

“I’d be happy to put a little bit of money in this one, but keeping a close eye on it.”

Nuix AGM might be very entertaining

Even though Nuix Ltd (ASX: NXL) only listed 11 months ago, shareholders will have felt like they’ve lived through a decade of stress.

A series of financial downgrades and governance scandals took the stock price for the analytics software provider from a high of $11.86 to as low as $2.16.

Oddly, these tech shares have had a mini-revival in the past month, spiking up 16.4% to close at $2.91 on Tuesday.

Shaw and Partners senior investment adviser Adam Dawes would hold fire though.

“We’re all scratching our heads on no news why it rallied,” he said.

“I’d be really cautious on this one… There’s a lot more water to go under the bridge on this one.”

Dawes would like to see what comes out of the annual general meeting on 30 November.

“The shareholders are going to get those rotten tomatoes and get ready to throw them because there’s going to be some hard questions to be answered.”

He would personally not consider picking up Nuix shares until some “more confidence” returned to the company.

“Even if it gets to $3 to $5 and I miss out on that initial rally, I’m comfortable then to get in because I know that some of these problems have been worked through.”

The post Are these 2 beaten-up ASX tech shares now bargain buys? appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 tech shares having such a lousy day?
• These were the best performing ASX tech shares in October
• 2 top ASX growth shares that could be buys
• 3 buy-rated ASX shares
• These were the best performing ASX 200 shares last week

Motley Fool contributor Tony Yoo owns shares of PUSHPAY FPO NZX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) fought hard but ultimately dropped into the red. The benchmark index fell 0.25% to 7,434.2 points.

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

ASX 200 poised to storm higher

The Australian share market looks set to rebound on Wednesday despite Wall Street coming under pressure overnight. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% higher this morning. On Wall Street, in late trade the Dow Jones is down 0.7%, the S&P 500 is down 0.5%, and the Nasdaq is trading 0.7% lower.

NAB shares remain a buy

The National Australia Bank Ltd (ASX: NAB) share price could be good value according to the team at Goldman Sachs. This morning the broker retained its conviction buy rating and lifted its price target on the bank’s shares to $31.15. While NAB delivered a slightly softer than expected full year result on Tuesday, Goldman remains positive due to the progress of its cost management initiatives and its position as the largest business bank.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could push higher today after oil prices rose again. According to Bloomberg, the WTI crude oil price is up 2.5% to US$83.98 a barrel and the Brent crude oil price has risen 1.4% to US$84.59 a barrel. The lifting of the US travel ban has given demand a boost.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price edged higher. According to CNBC, the spot gold price is up 0.2% to US$1,831.80 an ounce. Traders have been bidding gold higher ahead of the upcoming release of US inflation data.

AGMs

A number of ASX 200 shares are holding their annual general meetings today and could provide the market with updates at their respective events. Among the companies meeting today are Beach Energy Ltd (ASX: BPT), Clinuvel Pharmaceuticals Limited (ASX: CUV), Coles Group Ltd (ASX: COL), and Newcrest Mining Ltd (ASX: NCM).

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

More reading

• Beach Energy (ASX:BPT) share price dips amid news Seven may dump 30% holding
• Here are the top 10 ASX shares today
• The IAG (ASX:IAG) share price has gone backwards so far in 2021. Here’s why
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why Actinogen, AVITA, Inghams, and NAB shares are falling

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 owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Luckily for growth investors, there’s no shortage of quality growth shares on the Australian share market for them to choose from.

Two that are highly rated right now are listed below. Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

The first growth share to look at is Adore Beauty. It is Australia’s leading pure-play online beauty retailer.

After delivering strong growth in FY 2021, Adore Beauty has followed this up with further strong growth in the first quarter of FY 2022. Its recently released first quarter update revealed revenue of $63.8 million, up 25% on the prior corresponding period. This annualises to ~$255 million.

While this is a large number, it is still only a modest slice of the Australian beauty and personal care (BPC) market. That is currently estimated to be worth $11.2 billion and growing.

One leading broker that is a fan of Adore Beauty is UBS. It currently has a buy rating and $6.00 price target on its shares.

Goodman Group (ASX: GMG)

Another growth share for investors to look at is Goodman Group. It is a leading integrated commercial and industrial property company.

Thanks to its high quality portfolio, which has been curated expertly by management to give it exposure to industries benefiting from structural tailwinds such as the digital economy, Goodman has been growing its earnings at a solid rate over the last decade.

Pleasingly, this looks set to continue in FY 2022. Last week the company released its first quarter update and revealed that the consistent execution of its strategy has resulted in increased transactional activity and higher earnings certainty for the full year.

This led to Goodman upgrading its operating earnings per share growth guidance for FY 2022 to be in excess of 15%. This compares to prior guidance of 10% growth.

This went down well with Citi, which retained its buy rating and lifted its price target on Goodman’s shares to $27.50. The broker believes Goodman is well-placed for growth and has a three-year earnings per share CAGR estimate of ~16%.

The post Analysts name 2 ASX growth shares to buy appeared first on The Motley Fool Australia.

More reading

• 2 top ASX growth shares that might be worth buying
• 10 top ASX shares to buy in November
• 2 buy-rated blue chip ASX shares to boost your portfolio
• Top brokers name 3 ASX shares to buy today
• Why is the Goodman Group (ASX:GMG) share price up 9% so far 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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Beach Energy Ltd (ASX: BPT) share price failed to finish the day in the green on Tuesday. Disappointing shareholders, the oil and gas company slipped 1.9% lower during the session, finishing at $1.31 per share.

Negative sentiment was too strong among investors today after rumours that the company’s largest shareholder, Seven Group Holdings Ltd (ASX: SVW), might be looking for an exit.

Let’s dive deeper into the details.

Putting the Beach Energy share price under pressure

According to The Australian, there are whispers circulating that Seven Group could be looking to sell. At the time of writing, Seven Group holds roughly 30% of all Beach Energy shares on issue, making it its largest shareholder by far. In total, the stake has a value of $897 million based on the current Beach Energy share price.

Reportedly, the diversified investment group is chasing a buyer for its Beach holding following its takeover of construction materials manufacturer, Boral Limited (ASX: BLD). The rather messy process of climbing up to a 70% shareholding in Boral meant forking out $5.7 billion to get there.

While the merger and acquisition realm is hot at the moment, Seven Group might find it challenging to obtain a buyer of its Beach Energy stake. Sources say buyers of oil and gas assets are getting hard to come by as environmental, social, and governance (ESG) considerations become a higher priority.

Furthermore, if these rumours are true, it only adds to the volatility taking place in the Beach boardroom. Last week, the company experienced the departure of its managing director and CEO Matt Kay. In the meantime, chief financial officer Morné Engelbrecht has temporarily assumed the role.

While we can’t draw a direct correlation between the Beach Energy share price and today’s rumours, it is possible that it was a contributing factor towards the decline.

The Beach Energy share price is down more than 27% year-to-date.

The post Beach Energy (ASX:BPT) share price dips amid news Seven may dump 30% holding appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Beach Energy (ASX:BPT) share price down 6%?
• 5 things to watch on the ASX 200 on Tuesday
• Why ASX 200 energy shares are tanking on Thursday

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Bruce Jackson.

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Shares in Cannindah Resources Ltd (ASX: CAE) charged down today to finish 42.11% in the red.

In somewhat surprising fashion, the mineral explorer’s share price plummeted following a company update outlining progress at its Mt Cannindah site.

While the company reported positive assay results from its exploration program, the market responded otherwise, sending its shares southwards.

So what happened? Analysing market trade data and the company’s announcement, we uncover what went down for Cannindah’s share price today.

What did Cannindah announce?

Cannindah advised it had obtained assay results from a drillhole at its Mt Cannindah site in Queensland. The results now indicate a major expansion in known copper, gold, and silver mineralisation.

The company notes the mineralised zones are divided into three subsections.

These are labelled as a “surface oxide zone” of up to 14 metres from the surface. This is followed by a “supergene zone” from 14-33 metres in depth. Each zone contains copper, according to the company’s update.

There is also a supergene zone from 14 metres to 177 metres with a number of different grades and concentrations of resource.

All in all, the company intersected copper in hole 3 of its drilling program “aggregating to 493m @ 1.17% copper equivalent (0.89% Cu, 0.26g/t Au, 15.2g/t Ag)” from the surface.

For reference, ‘copper equivalent’ is the combined value of all economic metals in the intersected zone, with their value adjusted to an equivalent grade of copper, usually in US dollars.

It is widely accepted that anything over 100 metres and 1% copper equivalent or better is considered to be high grade.

Curiously, the release notes that Cannindah is drilling existing holes to examine the deep plunge of the copper mineralised zone at Mt Cannindah.

With this effort, it has “pushed on further down plunge to the west and discovered previously unknown or poorly delineated copper zones”.

So what happened with the Cannindah share price today?

The market responded poorly to the company’s announcement today, sending its shares well into negative territory.

Examining trade tickets from a trade summary provided by Bloomberg market data, we see a dump of almost 20 million Cannindah shares that occurred on Australian exchanges today.

A particularly large bloc trade of 225,000 shares in two lots was also executed through broker Credit-Suisse First Boston (CSFB).

In addition, there were 11 trades of more than 100,000 shares today for Cannindah’s float with more than 60% of these occurring within the first hour of trading.

Overall, there were a total of 2,482 trades completed today for Cannindah shares. That’s around 256% higher than yesterday and more than 570% above last Friday’s session.

With this scurry of trading activity where large volumes of the company’s shares exchanged hands, the picture starts to form as to what pulled the rug beneath Cannindah investors on Tuesday.

Aside from the project update and ensuing trading activity, there was no other remarkable market news out of Cannindah’s camp today.

At the close, the Cannindah share price finished at 33 cents apiece, down from 57 cents on Monday.

Cannindah share price snapshot

In the past 12 months, the Cannindah share price has soared more than 1,078%, rallying 965% this year to date.

These returns are light years away from the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of just 20% over the same time.

The post Cannindah Resources (ASX:CAE) share price just tanked 42%. What on earth happened appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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 Bruce Jackson.

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