The AGL Energy Limited (ASX: AGL) share price is edging higher today after Australia’s largest electricity provider unveiled its plans for a “concentrated solar thermal” project.

At the time of writing, the AGL share price is flat at $9.08 a piece.

Who moved my cheese?

Dr. Spencer Johnson’s wildly popular book “Who Moved My Cheese” describes an important aspect of business. If you haven’t read the book – it’s a short story of two mice, Sniff and Scurry; and two little people, Hem and Haw, that are faced with the dilemma of dwindling cheese reserves.

Sniff and Scurry decided to take a chance and begin looking for the next delectable block of cheese before their current one ran out. Meanwhile, Hem and Haw basked in the delight of their current cheese block, ignoring the vanishing supply – until one day it was gone.

Point being, it often pays to move out of one’s comfort zone voluntarily, rather than the decision being made for you at an inconvenient time. Which makes for quite an interesting overlay when considering Australia’s shift to renewables.

AGL’s latest news might be the energy company’s attempt at searching for the new block of metaphorical cheese. According to The Sydney Morning Herald, AGL is planning to replace the Liddell coal-powered thermal power station with a solar-and-hydro energy facility once the plant shuts down in 2023.

This development is in addition to AGL’s work with RayGen on a “concentrated solar thermal” project in Carwarp, Victoria. Construction has already commenced on this renewable endeavour – capable of delivering 4 megawatts of solar power and 50 megawatt-hours of storage.

PrimeCo involvement

Interestingly, the low carbon replacement for Liddell is expected to be encompassed by AGL’s PrimeCo business – not ‘New AGL’. Speaking in an interview with The Australian Financial Review, interim chief executive Graeme Hunt said:

For things that are on the land where PrimeCo will continue to have thermal generation for some time to come yet it is most likely that PrimeCo will be the participant in the project.

In March, the company’s proposed ‘New AGL’ was described as ‘the business with a clear pathway to full carbon neutrality’.

ASX utilities and AGL

It’s been a challenging 12 months for ASX-listed utilities, including AGL Energy. The S&P/ASX 200 Utilities [XUJ] (ASX: XUJ) index has sunk roughly 22% during the past year. Similarly, the AGL share price has eroded by 48%.

Both the utility sector and AGL have substantially underperformed the S&P/ASX 200 Index (ASX: XJO). Perhaps the cheese was moved on the whole sector.

The post The AGL Energy (ASX:AGL) old dog with green new tricks appeared first on The Motley Fool Australia.

More reading

• Is the ASX 200’s stellar 2021 performance normal?
• ASX 200 up 0.1%: Tech shares rise, Ansell names new CEO
• Breakdown in gold and inflation link leaves more questions than answers
• 2 ASX 200 shares that could be buys for dividends
• 5 things to watch on the ASX 200 on Tuesday

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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The Superloop Ltd (ASX: SLC) share price remains frozen today after the company revealed the details of its proposed acquisition and capital raising.

Superloop shares are expected to resume trading on Wednesday 9 June, pending the completion of the company’s placement and institutional entitlement.

Superloop to acquire Exetel

Superloop shares will be in focus when they resume trading after the company advised it will be forking out $100 million in cash and an additional $10 million in Superloop shares to acquire Exetel Pty Ltd. Exetel is Australia’s largest independent internet service provider.

Exetel will bring with it more than 110,000 consumer and business customers. With a post acquisition customer base of more than 155,000, Superloop expects the acquisition to accelerate its growth trajectory and provide the necessary scale for it to be a major provider in the Australian marketplace. Superloop also believes the addition of Exetel customers will accelerate the utilisation of its infrastructure assets, resulting in greater operating margins.

From an earnings perspective, Exetel forecasts FY21 revenue of more than $150 million, 95% of which is recurring revenue, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $11 million.

The acquisition announcement also highlighted that the combined group will realise $5 million in annualised synergies and cost savings. Cost reduction from external wholesale services is expected to commence immediately, with full cost savings expected to be achieved within 12 months.

The combined group expects FY21 EBITDA to jump 89% from $18 million to $34 million. This is comprised of $18 million EBITDA from Superloop, $11 million EBITDA from Exetel and $5 million in expected synergies.

Superloop will fund this acquisition with a $100 million capital raising at 93 cents per new share. The offer price represents a 10.6% discount to $1.04 the Superloop share price closed at on 4 June.

Superloop share price snapshot

Its been a flat year for the Superloop share price, currently trading at $1.04 and starting the year off at $1.06.

The company has struggled to inspire the market despite a solid half-year results announcement that delivered a 3.8% increase in revenue and an improvement in net losses. The Superloop share price slumped almost 9% to 95 cents on the day of the release.

The post Superloop (ASX:SLC) shares remain halted amid cap raise and acquisition appeared first on The Motley Fool Australia.

More reading

• Superloop (ASX:SLC) share price frozen ahead of acquisition news

Motley Fool contributor Kerry Sun 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 SUPERLOOP 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 Bruce Jackson.

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The National Storage REIT (ASX: NSR) share price won’t be going anywhere today. This follows the company’s announcement that its shares have been placed in a trading halt.

At Monday’s market close, the self-storage provider’s shares were changing hands for $2.08 apiece.

Why are National Storage shares halted?

National Storage shares entered a trading halt before market open this morning so the company could launch an accelerated non-renounceable entitlement offer.

This will see 1 share issued for every 6.27 shares owned at a price of $2.00, representing a 3.8% discount on Monday’s closing price. The company is hoping to raise approximately $325 million to repay debt and provide further liquidity on its balance sheet.

The entitlement offer represents 15.9% of total stapled securities currently on issue. Stapled securities means the combined 6.27 shares on offer cannot be bought or sold separately.

National Storage managing director Andrew Catsoulis commented:

This will enable us to further strengthen our balance sheet in order to facilitate ongoing growth of the business from a development, expansion and centre revitalisation basis, as well as enabling us to undertake continued acquisitions on a selected basis.

How has National Storage been performing?

In addition to the capital raise, National Storage provided a glimpse into its operational performance for the second half of FY21.

According to the company’s release, strong market conditions and ongoing portfolio improvements have driven revenue growth. In particular, National Storage achieved a record occupancy of 86.7%, up 9.1% on the prior corresponding period. This is for both Australian and New Zealand portfolios.

In addition, National Storage’s REVPAM (revenue per available square metre) increased to $229 per square metre, up from $188 at the end of FY20.

The rate per square metre also lifted to $261, a 5.2% increase on the $248 per square metre at the end of FY20.

Mr Catsoulis added:

All states and territories in which NSR operates continue to perform strongly and all these areas are now trading at over 80% occupancy, with over 35% of all centres now operating at over 90% occupancy, and approximately 70% operating at over 85%.

We attribute this strong operational result to a positive macroeconomic environment as well as a number of internal operational improvements over the past 12 to 18 months. These enhancements include an updated and fully rebuilt website, the integration of our “contact-free move-in“ process, refinements made to our revenue management system, as well as the internalisation of a number of key functions in the business that were previously outsourced.

Guidance update

Looking ahead, National Storage provided a positive outlook when taking into account the equity raising and robust operating performance.

For FY21, underlying earnings per share (EPS) is expected to slightly increase from 8.5 cents to 8.6 cents per stapled security. Previously the company was forecasting EPS to be in the range of 8.1 cents to 8.5 cents.

Preliminary guidance for FY22 underlying EPS is projected to be no less than an 8% growth on the FY21 result.

National Storage is scheduled to release its full-year results for 2021 on 25 August 2021.

Over the past 12 months, the National Storage share price has gained around 12%, and is up 9% this year.

The post Why the National Storage (ASX:NSR) share price is frozen appeared first on The Motley Fool Australia.

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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 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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Australia’s second biggest bank, Westpac Banking Corp (ASX: WBC), has become the latest bank to increased fixed interest rates for potential home buyers that are getting a loan with principal and interest repayments.

According to reporting by the Australian Financial Review, Westpac is going to increase its two-year and three-year fixed rate loans by 10 basis points and this will be also implemented with its smaller banks: St George, BankSA, Bank of Melbourne and RAMS.

It isn’t the first big bank to increase the fixed interest rate. The biggest Australian bank, Commonwealth Bank of Australia (ASX: CBA), decided to increase fixed rate last month.

The AFR quoted a spokesman for Westpac who said:

In making this decision, we took into account multiple factors including the need to manage pricing changes in a sustainable way.   

We are in a record low interest rate environment and continue to offer competitive home loan rates for customers.

Depending on the direction of the cost of Westpac’s funding, this interest rate rise might mean Westpac can earn a slightly higher net interest margin (NIM) on the loans it gives out.

What has been happening for Westpac recently?

Over the last six months the Westpac share price has risen by over 32%.

Just over a month ago, the big four ASX bank reported its FY21 half-year result which showed a sizeable profit improvement year on year. Excluding notable items, Westpac’s cash earnings went up 60% to $3.82 billion.

Statutory net profit was up 189% to $3.44 billion. Westpac’s cash earnings went up 256% to $2.54 billion. However, the net interest margin (NIM) dropped 4 basis points year on year to 2.09%. But compared to the second half of FY20, the NIM went up 6 six basis points.

Westpac’s balance sheet improved, the common equity tier 1 (CET1) capital ratio improved by 153 basis points to 12.34%.

The CEO of Westpac, Peter King, gave some comments on the outlook for the bank and economy:

It has been a promising start to the year with increased cash earnings, growth in mortgages and continued balance sheet strength.

First half earnings were considerably higher than the prior corresponding period, mainly due to an impairment benefit reflecting improved asset quality and a better economic outlook. Notable items were also lower.

Importantly, we are beginning to see the benefits of our new operating model through improved performance.

Our Australian mortgage book increased $2.6 billion over the past six months, with good growth in owner occupier loans partly offset by lower investor lending. Owner occupier loans increased 3 per cent, with first home buyers making up 13 percent of new loans.

Australia and New Zealand have managed the pandemic well and we are proud to have helped so many customers return to full repayments. Stressed exposures to total committed exposures ended the half at 1.60 per cent, compared to 1.91 per cent at 30 September 2020.

While the economic outlook is more positive, there is still some uncertainty and we have remained prudent in our impairment provisioning.

The post Westpac (ASX:WBC) just made it a bit more expensive to buy a house with higher interest rates appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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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We Fools like to tout the virtues of long-term investing. Holding a basket of quality ASX shares with a long-term horizon is one of, if not the, best way to invest for maximum wealth creation. Well, that’s the Warren Buffett playbook, and it seems to have worked pretty well for him over 6-plus decades of investing.

But what about those investors who don’t like investing? And perhaps have followed one of Buffett’s other pieces of wisdom – buy an index fund and just keep adding to it.

This ‘passive investing’ method is also recommended by many investors – and for good reason. By entrusting your capital to an index fund, your money can just follow ‘the market’ over time. Sure, you might not get a juiced-up return. But you also don’t have to put nearly as much work into it.

So how would an investor who has followed this method of index investing have fared over the past year? Or 5 years?

How has the ASX 200 historically performed?

Let’s take a simple S&P/ASX 200 Index (ASX: XJO) fund like the iShares Core S&P/Asx 200 Etf (ASX: IOZ). This exchange-traded fund (ETF) is your typical Aussie index fund – just investing in every company on the ASX 200, proportioned by market capitalisation.

This index fund has returned an average of 9.82% per annum over the past 3 years, 9.97% over the past 5, and 8.37% since its inception in December 2010. However, it’s also returned 28.12% over the past 12 months, including 10.4% in 2021 so far alone (remember, it’s only June). Is that normal?

Well, no, not if you define normal as the long-term returns we discussed earlier. But wait, what about the market crash last year, you might say. Isn’t that distorting these numbers somewhat? Well, in a way. But the market crash happened over March and April last year. By early June 2020, the ASX 200 had already recovered close to 25% from its March lows. So we can take a large part of the ‘2020 crash factor’ away from the returns of the past 12 months.

Long story short, the returns that passive index investors have enjoyed over the past 12 months are not normal, at least by the ASX 200’s historical standards. Now, no one knows what the markets will do over the next year or two (or even the next day or two). But history tells us that we probably shouldn’t be expecting a 28.12% return every year from now on.

That might leave some investors disappointed. But that’s the way the cookie crumbles, as they say. But who knows, maybe if we all temper our expectations, we might be pleasantly surprised.

The post Is the ASX 200’s stellar 2021 performance normal? appeared first on The Motley Fool Australia.

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

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is bouncing back from yesterday’s decline. The benchmark index is currently up 0.1% to 7,290.5 points.

Here’s what is happening on the market today:

Tech shares rise

Tech shares such as Pro Medicus Limited (ASX: PME) and WiseTech Global Ltd (ASX: WTC) are pushing higher today and helping drive the S&P/ASX All Technology Index (ASX: XTX) up 0.7%. Investors have been buying tech shares following another positive night on the Nasdaq index. The tech-heavy index recorded a 0.5% gain during overnight trade. This compares to a 0.35% decline by the Dow Jones.

Travel shares rebound

News that Victoria will be ending its lockdown on Thursday has gone down well with the market and particularly the travel sector. The likes of Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) shares are pushing higher today, with investors seemingly banking on this giving the domestic travel market a big boost in the coming weeks and months.

Ansell names its new CEO

The Ansell Limited (ASX: ANN) share price is trading lower despite announcing its new CEO. This morning the health and safety products company announced that Neil Salmon will become its new Managing Director and CEO on 1 September. This follows a comprehensive internal and external search for a successor. Mr Salmon is currently the company’s President of the Industrial Global Business Unit. He will be replacing the retiring Magnus Nicolin.

Best and worst ASX 200 performers

The EML Payments Ltd (ASX: EML) share price is the best performer on the ASX 200 on Tuesday with a 4.5% gain. This morning UBS responded to the payments company’s trading update by retaining its buy rating and $5.30 price target. The worst performer has been the Infratil Ltd (ASX: IFT) share price with a 2.5% decline on no news.

The post ASX 200 up 0.1%: Tech shares rise, Ansell names new CEO appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday

James Mickleboro does not own any shares 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 Ansell Ltd, EML, Flight Centre, Pro Medicus and Webjet. 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 Ampol Ltd (ASX: ALD) are falling this morning despite news the company has taken a stake in CSIRO-backed hydrogen energy generation and storage startup Endua.

At the time of writing, the Ampol share price is trading at $29.71 – 0.34% lower than yesterday’s closing price.

Endua is developing hydrogen energy generation and storage modules, aiming to deliver environmentally friendly, off-grid electricity at a moment’s notice.

Let’s take a closer look at the news of Ampol’s new partnership.

Ampol partners with Endua

Ampol has committed to help develop and commercialise Endua’s hydrogen energy technology, initially focusing on providing a clean energy alternative to the off-grid diesel generators market.

Currently, off-grid industries and remote communities generally source power from expensive and environmentally damaging diesel generators.

According to the CSIRO, Australia’s off-grid diesel generators use $1.5 billion worth of diesel and create 200,000 tonnes of carbon emissions annually.

Endua hopes its power generation and storage technology will allow those reliant on diesel generators to use hydrogen energy instead.

Its device uses electrolysis technology, developed with the CSIRO, to produce hydrogen and storage in a modular power bank, capable of driving power loads up to 150kW from a single pack.

Endua CEO Paul Sernia is among the founders of electric vehicle fast charger producer, Tritium. Tritium is currently eyeing a $2.2 billion Nasdaq listing.

On Endua’s vision, Sernia said:

We believe it’s possible to give everyone access to clean power, whether in the city or the outback. We’re solving the hardest problems in the move to net zero, for all purposes, not just those that ‘fit’ the renewables profile.

Ampol’s partnership will see it providing access to Endua’s technology to its ~80,000 business-to-business customers. It will allow companies reliant on diesel generators to access a low-carbon, off-grid energy solution.

Ampol’s partnership with Endua was a key part of Ampol’s recently unveiled decarbonisation strategy, although Endua wasn’t named in the strategy’s original announcement.

According to the Australian Financial Review, Ampol has taken a 20% stake in Endua.

Endua received $5 million funding from the CSIRO. The CSIRO says Endua’s work is solving “some of the hardest problems in the transition to renewable energy”.

Commentary from Ampol management

Ampol managing director and CEO Matthew Halliday commented on the company’s investment:

We are excited to be involved with Endua, which is part of our commitment to extending our customer value proposition by finding and developing new energy solutions that will assist with their energy transition.

Ampol share price snapshot

The Ampol share price has been having a solid year so far on the ASX.

Currently, the Ampol share price is almost 5% higher than it was at the start of 2021. It has also gained around 5% since this time last year.

The company has a market capitalisation of around $7 billion, with approximately 238 million shares outstanding.

The post Ampol (ASX:ALD) partners with startup developing hydrogen power banks appeared first on The Motley Fool Australia.

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

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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and $5.85 price target on this infant formula company’s shares. The broker notes that UK multinational consumer goods company Reckitt has divested its China-based infant formula business for an enterprise value of US$2.2 billion. While this deal makes a2 Milk look cheap on paper based on its multiples, the broker believes they are very different businesses. Furthermore, a2 Milk’s sales mix is changing and it lacks local manufacturing. In light of this, it doesn’t believe investors should value a2 Milk using this deal and holds firm with its current valuation. The a2 Milk share price is fetching $5.76 today.

ASX Ltd (ASX: ASX)

A note out of Morgans reveals that its analysts have downgraded this stock exchange operator’s shares to a reduce rating with a $65.87 price target. This follows the release of the company’s trading update for the month of May. It appears to have found the update underwhelming, noting that capital raisings and IPOs were the only highlight from the month. And with Morgans not anticipating any real improvements in the second half, it feels its shares are overvalued at the current level. The ASX share price is trading at $74.30 this morning.

Fortescue Metals Group Limited (ASX: FMG)

Another note out of Morgans reveals that its analysts have downgraded this iron ore producer’s shares to a reduce rating with an $18.70 price target. The broker made the move on the belief that the iron ore cycle is maturing and cost pressures are building in Western Australia. It suspects the latter could lead to a softer than expected fourth quarter performance. Morgans also has a few concerns over the Iron Bridge operation, stating that further downgrades cannot be ruled out. The Fortescue share price is fetching $22.69 today.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Creso Pharma Ltd (ASX: CPH) share price has been a strong performer this morning.

At the time of writing, the cannabis and psychedelics company’s shares are up 6% to 17 cents.

This means the Creso share price is now up 16% since this time last week.

Why is the Creso share price storming higher?

Investors have been buying the company’s shares this morning after it released an update on its soon to be acquired Halucenex Life Sciences business.

According to the release, Halucenex has made the strategic decision to expand the recruitment of its phase II Treatment Resistant Post Traumatic Stress Disorder (PTSD) clinical trial.

The release explains that the trial will now include participants that have not served in the military or undertaken roles as first responders.

The decision to expand the trial scope was made following an overwhelming amount of inbound enquiries that the company received from individuals that suffer from debilitating mental health conditions and are seeking alternative treatment methods.

Halucenex expects the addition of non-veterans to the clinical trial will allow it to collate an additional data set. This will provide real world examples of the efficacy of psilocybin when used as an alternative treatment route.

Management commentary

Halucenex’s Founder & CEO Bill Fleming commented: “The inclusion of non-veterans in our pending clinical trial is a strategic decision that will provide a number of benefits to Halucenex and Creso Pharma. Following various regulatory shifts in the US and the exacerbating effect COVID-19 has had on mental health conditions across the population, it is becoming more and more apparent that psychedelic treatments could become mainstream in the near future, so to include every day people in our R&D will provide us with examples of how psilocybin can be used more broadly to treat mental health issues.”

“Further, expanding the trial scope will add to the growing body of evidence for psychedelic based medicines, and assist the Company as it progresses further research and licensing agreements in North America and more broadly,” he added.

This sentiment was echoed by Creso’s Non-executive Chairman, Adam Blumenthal.

He said: “Halucenex’s management continue to make steps towards creating psychedelic compounds and therapeutics that can be used for both veterans and first responders, as well as every day individuals. To broaden the clinical trial participant scope, is a very promising development and will lay a very strong foundation for the Company as it pushes towards becoming a best-in-class provider of cannabis, cannabinoids and psychedelic alternative medicines, to meet the growing need for treatments to improve wellbeing.”

The post Why the Creso (ASX:CPH) share price is racing 6% higher appeared first on The Motley Fool Australia.

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James Mickleboro does not own Creso Pharma shares. 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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Under-fire technology firm Nuix Ltd (ASX: NXL) and its major shareholder Macquarie Group Ltd (ASX: MQG) are reportedly facing an investigation by the corporate watchdog.

The Australian Securities and Investments Commission (ASIC), according to the Sydney Morning Herald, has notified both companies to not destroy documents going back to 2018.

The regulator’s probe will reportedly explore accusations that financial forecasts were inflated in the prospectus that led to Nuix’s listing in December.

The newspaper reported that “several executives” involved in the initial public offering (IPO) have been served section 19 notices, which are precursors to an ASIC investigation. Not complying with section 19 exposes subjects to jail sentences.

Nuix declined to comment to The Motley Fool on the investigation.

But a spokesperson did say the company “understands and appreciates” issues raised by investors about missed prospectus forecasts.

“The CEO, chair, and other senior leaders and board members acknowledge that recent financial performance, while still strong, has not been where we thought it would be.”

Nuix still doesn’t have an investor relations head. The spokesperson told The Motley Fool that one would be appointed soon.

ASIC declined to comment to The Motley Fool, while Macquarie did not respond.

Year of discontent for Nuix and all involved

With the possible exception of former chair and founder Tony Castagna, Nuix’s fortunes this year have presented a headache for investors, Macquarie, the company itself and regulators.

Repeated downgrades to the initial prospectus forecasts in the first few months of its ASX life has seen the Nuix share price plummet from a high of $11.86 to now $2.75. 

The current worth is about half the IPO price.

As well as the financial performance, last month the Federal Police reportedly started an investigation into irregular paperwork involving Castagna’s share options. Those options allowed Castagna to turn $3,000 he put in in 2005 into $80 million upon the float.

Although Macquarie still holds 30.1% of the company, it has also suffered reputational damage from the saga.

At least two law firms are currently exploring class-action lawsuits on behalf of aggrieved IPO investors. The Motley Fool has contacted one firm but it did not respond.

Nuix’s listing was highly anticipated. The company provides data analytics software that calls large government and law enforcement agencies among its clients. 

The flagship product is the Nuix Engine, an unstructured data processor. The software helped journalists plough through 11.5 million documents during the Panama Papers investigation in 2016.

The post Macquarie and Nuix face ASIC investigation: report appeared first on The Motley Fool Australia.

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Tony Yoo owns shares of Macquarie Group Limited and Nuix Pty Ltd. 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 Macquarie Group Limited. The Motley Fool Australia has recommended Nuix Pty 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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