The S&P/ASX 200 Index (ASX: XJO) is having an interesting start to the trading week this Monday. At the time of writing, the ASX 200 is currently down 0.01% to 7,394 points after hitting a new record high of 7,417.6 points earlier this morning.

So let’s take a look at some of the ASX 200 shares that are being traded the most heavily today:

3 ASX 200 shares flying around the share market today

Lynas Rare Earths Ltd (ASX: LYC)

Rare earth producer Lynas is our first ASX 200 share to check out today. So far this Monday, a substantial 16.03 million shares have changed hands. This is almost certainly the result of the massive movement the Lynas share price has seen today. Lynas shares are currently up a whopping 10.22% to $7.08 a share today, after making a brand new 52-week high of $7.12 a share earlier in the day.

This move upwards was in response to a quarterly report the company put out this morning. This report revealed both bumper revenues and production metrics for Lynas, as well as a surge in cash on hand. Clearly, investors approve.

Silver Lake Resources Limited. (ASX: SLR)

ASX 200 gold miner Silver Lake is our second company to look at today, seeing as a hefty 19.16 million shares have swapped hands so far this Monday. Silver Lake is seeing a similar outcome from an opposite cause to Lynas. Today, Silver Lake shares are down a nasty 7.62% at the time of writing to $1.49 a share.

This appears to be a continuation of the reaction investors had last week to Silver Lake’s quarterly results, which were released on Friday. Not only did this report reveal a slump in gold sales, but the company was also rather pessimistic about its FY2022 guidance. Silver Lake is now down around 15% from where it ended the trading day last Thursday.

Alumina Limited (ASX: AWC)

Our final ASX 200 share today, and the most traded share on the markets, goes to aluminium producer Alumina. The 21.85 million Alumina shares that have traded hands today is probably the result of the Alumina share price itself. So far this Monday, Alumina shares are up an impressive 5.56% to $1.71 a share.

It’s not immediately obvious why this company is jumping so enthusiastically today. However, sentiment seems to be turning with Alumina after an initial dip following its quarterly earnings report on 16 July. Since 20 July, this company is now up more than 11%.

The post Here are 3 ASX 200 shares flying around the share market today appeared first on The Motley Fool Australia.

More reading

• Why UBS just upgraded these 3 ASX shares to “buy”
• ASX 200 employee busted stealing $470,000: Watch it unfold
• Why City Chic, Lynas Rare Earths, Rio Tinto, & Stavely Minerals are charging higher
• ASX 200 midday update: Lynas jumps, GPT withdraws guidance
• Here’s why the Lynas (ASX:LYC) share price is on watch today

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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If you’re wanting to invest in the small side of the Australian share market, then the two small caps listed below could be worth a closer look.

Analysts believe they could have very bright futures and are tipping them as buys. Here’s why they could worth adding to your watchlist:

Booktopia Group Ltd (ASX: BKG)

The first small cap ASX share to look at is Booktopia. It is an online book retailer which was supposed to struggle when Amazon launched in Australia. Pleasingly for investors, that simply hasn’t been the case. For example, during the first half of FY 2021, the company shipped a total of 4.2 million units for the six months.

This was up 40% on the prior corresponding period and led to Booktopia reporting a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. It then followed this up with further strong growth in the third quarter, leaving it well-placed to deliver a very strong full year result next month.

Analysts at Morgans appear confident this positive form will continue. The broker is also expecting further market share gains and scale benefits. In light of this, it currently has an add rating and $3.54 price target on its shares.

Serko Ltd (ASX: SKO)

Another small cap ASX share to watch is Serko. It is an online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. The Zeno Travel platform provides corporate customers with AI-powered end-to-end travel itineraries, cost control and travel policy compliance. Whereas the Zeno Expense platform lets users automate and streamline their expense administration function, identify out-of-policy expense claims, and prevent fraud.

Given the impact that COVID-19 has had on travel markets, it will come as no surprise to learn that its performance has been impacted. However, demand has been improving and is expected to continue doing so as travel markets recover. This will be supported by its game-changing deal with travel giant Booking.com, which has the potential to be a significant boost to revenues in FY 2022.

Management commented: “The new Booking.com for Business platform is now being rolled out globally as additional languages and regional content are added. As previously announced, subject to the recovery in relevant markets, the partnership is expected to make a material contribution to revenues in the 2022 financial year.”

Macquarie is positive on the company due to its world class technology. It has an outperform rating and NZ$8.31 (A$7.87) price target on its shares.

The post 2 exciting and buy-rated small cap ASX shares appeared first on The Motley Fool Australia.

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• 3 exciting small cap ASX shares to put on your watchlist

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 Serko Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. The Motley Fool Australia has recommended Serko 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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Travel shares are sliding at the start of the week as Australian states struggle to contend with the COVID-19 resurgence. In particular, the Webjet Limited (ASX: WEB) share price is off by 1.7% today, at $4.84 apiece.

Since March, shares in the travel agent have been moving to the downside. As a result, the Webjet share price has lost 20% in approximately 4 months. The uncertainty that has been introduced by the Delta variant has suppressed investor sentiment.

Latest COVID-19 updates

New South Wales has started the week off with 145 new locally acquired cases overnight. Unfortunately, 51 of those cases were in the community during their entire infectious period.

NSW recorded 145 new locally acquired cases of COVID-19 in the 24 hours to 8pm last night. pic.twitter.com/TUUIDvd6SP

— NSW Health (@NSWHealth) July 26, 2021

https://platform.twitter.com/widgets.js

Additionally, NSW Premier Gladys Berejiklian is expected to announce changes to restrictions soon, with a possible tightening in some instances. This follows protests in Sydney, which the state fears could end up being a ‘super spreader event’. With another protest planned for the coming weekend, NSW police commissioner Mick Fuller said:

We will be heavily policing that event. We will take the ground very early. You will be arrested. The community has spoken about that behaviour. The Premier has spoken about that behaviour and it won’t be tolerated again.

Despite having been in lockdown for a month now, Sydney has continued to post high daily cases of COVID-19.

The continued lockdowns have weighed on many industries, including travel. In fact, the estimated cost to the economy per week of the NSW lockdown is $1 billion, according to the Australian Financial Review. With millions of people across the country under some form of restriction or lockdown, the impact is taking its toll on the Webjet share price.

On a positive note, South Australia expects to be let out of lockdown at 12:01am on Wednesday. However, an additional week of restrictions will be imposed to remain vigilant. Meanwhile, Victoria has delayed its verdict on a lockdown lift until tomorrow.

Webjet share price recap

Despite the recent events, the Webjet share price is up 57.1% in the last 12 months. Comparatively, the S&P/ASX 200 Index (ASX: XJO) has rallied 22.4%.

Fortunately for Webjet shareholders, the company has raised plenty of capital to sustain itself throughout this tumultuous period. At the end of March, Webjet held $262 million. In addition to this, the company also raised a further $250 million through a convertible note offering in April.

The Webjet share price has fallen roughly 8% since announcing its convertible note offering.

The post Webjet (ASX:WEB) share price weakens as COVID cases continue appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 6 ASX shares to rocket when COVID Delta passes
• Webjet shares (ASX:WEB) are among the most shorted on the ASX
• Why the Webjet (ASX:WEB) share price has fallen 10% in a month
• What happened on the US stock market overnight and how could it impact ASX shares?

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 owns shares of and has recommended Webjet 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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The S&P/ASX 200 Index (Index:^AXJO) is clinging to its record high with a top broker upgrading these ASX shares to “buy” ahead of the August reporting season.

This shows that there’s still value to be found if you cared to look even as investors are sitting on their hands.

They want to see the profit reports before deciding if our market is worthy of being pushed further into record territory.

ASX shares upgraded to buy ahead of reporting season

But UBS isn’t waiting. It believes traditional ASX media shares represent good value and upgraded the Nine Entertainment Co Holdings Ltd (ASX: NEC) share price and News Corporation Class B Voting CDI (ASX: NWS) share price to “buy”.

The key thing about these shares is their low probability of delivering an unpleasant earnings surprise next month.

Further, the broker reckons there is upside potential to the sector’s earnings. This assumes economic growth remains favourable, notwithstanding the nearer-term headwinds from COVID-19 lockdowns.

Upside for these ASX media shares

“COVID-19’s impact in the pcp will drive material y/y ad revenue growth for traditional media names in the June half,” said UBS.

“Other themes include the impact of recent deals with Facebook/Google; cost control (with selected investment in growth areas); and with balance sheets broadly repaired, we see dividends returning or increasing in FY22 and the potential for corporate activity.”

The broker’s 12-month price target on the Nine Entertainment share price is $3.10 and the News Corporation share price is $39.50 a share.

Upgraded to “buy” on earnings cycle

Another that got upgraded by UBS is the Imdex Limited (ASX: IMD) share price. The broker lifted its rating on the drilling services small cap to “buy” from “neutral” with a price target of $2.40 a share.

“Imdex is well positioned to leverage the strong multi-year exploration cycle that is potentially emerging, supported by strength in gold and copper prices and improved access to capital,” said the broker.

“IMD’s Reflex units on hire are at record levels, driven by North America and Australia, where drill rig utilisation is approaching the peak.”

Still cheap after 50% rally

Imdex’s South American operations are lagging but at least conditions are returning to pre-COVID levels.

And don’t be put off by the Imdex share price’s circa 50% rally over the past year. That’s broadly consistent with its global peers and the rise in gold and copper prices.

The Imdex share price is still trading at around an 11% discount to the ASX small industrials. Further, it’s probably facing an upgrade cycle thanks to increasing exploration activity.

The post Why UBS just upgraded these 3 ASX shares to “buy” appeared first on The Motley Fool Australia.

More reading

• ASX 200 employee busted stealing $470,000: Watch it unfold
• ASX 200 midday update: Lynas jumps, GPT withdraws guidance
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week

Motley Fool contributor Brendon Lau 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 S&P/ASX 200 Index (ASX: XJO) has given up its earlier gains and is currently right about where it ended on Friday.

This comes after the ASX 200 closed for a new all-time high on Friday. With the index currently wobbling between a small loss and a small gain, it could still set a new record close today.

The bigger question facing investors, though, is what to expect from the ASX 200 during the upcoming earnings season, when a company’s full year report can send its share price strongly higher…or lower.

Guidance will be critical for ASX 200 shares

The full 2021 financial year results of ASX 200 companies are set to deliver runs from 1 July 2020 through to 30 June 2021.

That means most of the impact from the recent surge in COVID-19 cases, and the resultant lockdowns across 3 states, won’t be baked into the financials yet.

For that reason, Saxo Market’s Australian market strategist, Eleanor Creagh notes that:

Forward guidance will trump those backward-looking results. And outlooks and guidance for those impacted will be tempered by the current lockdowns. This is where investors will be seeking clarity from management about what comes next.

Despite the new wave of lockdowns, Creagh said that “household balance sheets generally remain strong and income support measures are in place for those affected by local lockdowns, though to a lesser degree”.

With strong balance sheets, limited abilities to splurge on travel, and buoyed by strong housing prices, Creagh forecasts a positive outlook for consumption.

She adds that, “[M]any businesses are impacted both positively and negatively by lockdowns, but we have also seen the reopening can be just as impactful. This inconsistency is likely something that will continue until we see vaccine penetration rates picking up.”

The bar to beat expectations is low

Markets are said to be forward looking. Meaning that expected future performance is already factored into the price.

This also means when an ASX 200 company exceeds expectations it will generally see its share price rise. On the flip side, disappointing expectations to the downside usually sees shares fall lower.

Creagh says that analysts have largely been slow to upgrade their forecasts heading into earnings season. For that reason, “the bar to beat expectations is low”.

What does that mean for companies trading on the ASX 200?

According to Creagh:

As with prior reporting periods, companies should broadly exceed expectations with the final tally likely skewed to upside surprises. However, as the profit cycle has progressed the magnitude of earnings surprises will be less.

Given the current circumstances, she reminds us, the “focus will be on the guidance and outlooks as market participants look ahead”.

Dividends poised to rebound

Income investors didn’t have the best of years in 2020, as most ASX 200 dividend shares scaled back or even cut their dividend payments entirely. The big banks, classically a favourite play for income investors, cut their dividend payments more than 50% in 2020, year-on-year.

However, Saxo Markets sees an upside for dividends in the upcoming earnings season. “At an index level, dividends will be well on their way to recovery, maintaining a decent premium over 10-year government bond yields,” Creagh said.

Though Saxo forecasts the banks’ dividend payments won’t yet reach past payout ratios, Creagh said that, “dividends will significantly improve on the last payment period for the banks.”

Prior to the new wave of lockdowns, the cashed-up banks were widely forecast to return capital to shareholders.

According to Creagh, that’s still likely. Though there are risks to this consensus outlook:

Given current lockdowns there is a possibility that the banks take a more cautious approach to capital management relative to consensus expectations. Though this week, as restrictions have tightened, ANZ [Australia and New Zealand Banking Group Ltd (ASX: ANZ)] has already announced an on-market share buyback program of up to $1.5 billion beginning in August.

This strengthens our confidence in the potential for capital management.

Also in the dividend spotlight are ASX 200 mining heavyweights BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG).

Creagh notes that:

The miners (BHP, RIO, FMG) will continue to pay high dividends in absolute terms. Iron ore prices have remained elevated throughout the financial year and other commodities have also seen prices appreciate. Stronger balance sheets, robust revenues and profits, along with elevated commodity prices mean miners are in a strong position to continue to return cash to shareholders.

As for ASX 200 travel shares?

Creagh says that, “Airlines, travel agencies, accommodation and entertainment companies remain under pressure and at the mercy of the current unpredictable circumstance with respect to domestic travel.”

Despite recovering strongly from the panic selling in February and March 2020, companies in the travel and leisure sector are still broadly trading well below their pre-pandemic levels. For this reason, Creagh says, “There remains a catch-up trade in play for those taking a longer-term view, particularly with vaccine penetration stepping up investors can look ahead more clearly to what lies on the other side of the pandemic.”

The post What to expect from the ASX 200 during earnings season appeared first on The Motley Fool Australia.

More reading

• Own ANZ (ASX:ANZ) shares? Here’s what to look for during reporting season
• Why City Chic, Lynas Rare Earths, Rio Tinto, & Stavely Minerals are charging higher
• BHP (ASX:BHP) share price lifts amid news $7.5b project will proceed
• Own Rio Tinto (ASX:RIO) shares? What to look for when the miner reports on Wednesday
• Here’s why the BHP (ASX:BHP) share price is up almost 10% in a month

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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A former staffer of an S&P/ASX 200 Index (ASX: XJO) company has been convicted of his involvement in an illegal gambling scam.

A NSW local court heard that Star Entertainment Group Ltd (ASX: SGR) baccarat dealer Hieu Duc Lam stole $467,700 from his employer by allowing an accomplice to cheat.

Independent Liquor & Gaming Authority (ILGA) chair Philip Crawford said employees in the gambling industry held “special positions of responsibility”.

“A casino special employee is licensed to supervise and facilitate gaming activities,” he said. 

“Their role is to help safeguard the integrity of casino operations from criminal influence, serious misconduct or exploitation, and a special degree of trust is placed in them. This case demonstrates a clear breach of that trust.”

The court sentenced Lam to an aggregate of 2 years’ imprisonment, to be served as an intensive corrections order. He is due to be released in July next year.

Lam also must complete 250 hours of community service.

Star Entertainment shares lost 2.27% on Monday to trade at $3.45 in the afternoon. The ASX 200 stock has lost almost 6% in the past month, courtesy of a COVID-19 resurgence in Australia’s largest city.

How the employee cheated The Star casino

Closed-circuit television showed Lam conspiring with a colleague and a customer to cheat The Star casino in Sydney.

The video showed Lam peeking to memorise a batch of cards that were about to be used in a game of baccarat.

Lam then used a secure messaging app on his phone to tip off the order of the cards to his co-conspirator, who was a player in the upcoming game.

The ASX 200 company lost almost $500,000 in less than a month to the group, according to the ILGA.

Once the scam was uncovered, The Star sacked Lam and self-reported the conduct to the ILGA.

The court then found Lam guilty of 15 charges of dishonestly obtaining a financial advantage. The ILGA has also cancelled his gaming licence.

Lam’s sentencing comes on the back of another two staffers from The Star busted in March for trying to steal more than $30,000 in gaming chips.

The post ASX 200 employee busted stealing $470,000: Watch it unfold appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Lynas jumps, GPT withdraws guidance
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
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• 2 quality ASX 200 tech shares that might be buys

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 Bruce Jackson.

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The Zip Co Ltd (ASX: Z1P) share price is off to a disappointing start to the week, sliding 3.95% to a near three-month low of $6.81.

Zip fourth quarter results fail to impress investors

Last Thursday Zip released its Q4 FY21 results.

The company delivered classic triple-digit year-on-year growth across group revenue, transaction volume, and transaction numbers.

In addition, Zip reiterated its focus on global expansion, acquiring the remaining shares of Twisto Payments and Spotii Holdings to enter the respective Europe and Middle East markets.

During the quarter, the company launched organically into Canada and Mexico.

And in May, Reuters reported that Zip chief executive Larry Diamond is, “actively looking at Singapore, Malaysia, Thailand, Philippines and India.”

Despite what was otherwise a solid result with plenty of growth initiatives, the Zip share price would tumble 7.91% to $6.91 on the day of the announcement.

Selling pressure continues to mount

The Zip share price has experienced three major sell-offs this month.

On 14, 15, and 22 July, the company’s shares fell 11.4%, 5.6%, and 7.9% respectively.

On these dates, approximately 25 million, 20 million, and 30 million shares exchanged hands.

To add some perspective, the current 10-day average volume of Zip shares is approximately 14 million.

It’s more than just the Zip share price

The broader ASX-listed buy now, pay later sector is under pressure on Monday, with selling across the board.

The Afterpay Ltd (ASX: APT) share price is down 2.4% to $104.31.

Sezzle Inc (ASX: SZL) is the hardest hit in the large cap space, down 4.57% to $7.72.

Smaller buy now, pay later players continue to fall sharply with Openpay Group Ltd (ASX: OPY) and Laybuy Group Holdings Ltd (ASX: LBY) tumbling 3.49% and 6.67% respectively.

The post Zip (ASX:Z1P) share price tumbles 4% on Monday. Here’s why. appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 6 ASX shares to rocket when COVID Delta passes
• Why Zip (ASX:Z1P) and this explosive ASX growth share could be buys
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today

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 AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.1% to 7,400.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 5.5% to $6.41. Today’s decline appears to have been driven by regulatory concerns in China. This follows news of government crackdowns in the Chinese educational sector. There are fears that regulators may use regulatory measures to favour domestic dairy brands.

Cann Group Ltd (ASX: CAN)

The Cann share price has crashed 16% to 32 cents. This follows the announcement of another capital raising by the cannabis company. Cann is aiming to raise a further $20 million at a discount of 27.5 cents. Should the company complete this capital raising successfully, it will mean it has raised $138.2 million from investors since listing. Cann recorded sales of $4.3 million in FY 2021. Cann is raising these funds to help it deliver substantial cost savings as it ramps up production.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 3% to $14.45. This travel agent’s shares have come under pressure recently amid concerns that the Delta variant of COVID-19 could push back the travel market recovery and lead to Flight Centre burning through significant more cash than previously hoped.

GPT Group (ASX: GPT)

The GPT share price is down 2.5% to $4.63. Investors have been selling the property company’s shares after it withdrew its guidance for FY 2021. According to the release, GPT has withdrawn its Funds From Operations (FFO) and distribution guidance for 2021 due to uncertainty caused by COVID-19 lockdowns in Melbourne and Sydney.

The post Why a2 Milk, Cann, Flight Centre, & GPT shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• Here’s why the Bubs (ASX:BUB) share price is down 4% on Monday
• Flight Centre (ASX:FLT) share price slides amid news Sydney lockdown could last until September
• These are the 10 most shorted ASX shares
• ASX 200 midday update: Lynas jumps, GPT withdraws guidance
• Is the A2 Milk (ASX:A2M) share price a buy right now?

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The Appen Ltd (ASX: APX) share price hasn’t exactly been a top performer recently. Aside from the 3% the shares have lost just today, Appen is also down 14.75% over the past month, 50% in 2021 so far and 66% over the past 12 months.

It seems the tech company’s reputation as a red hot ASX growth share delivering double-digit returns year in, year out are long gone — at least for now.

So why has Appen had such a year to forget, especially the past month’s woes?

After all, other ASX tech shares were smashed last year with the onset of the global pandemic. But today, the S&P/ASX All Technology Index (ASX: XTX), of which Appen is a component, is still up almost 28% over the past 12 months. So why is Appen is dragging the chain here?

A year to forget

A number of factors have been working against Appen recently. The company is still struggling to regain its strength following the initial shock of the pandemic last year.

The company has been forced to downgrade its earnings guidance for one. The subsequent share price drops resulting from this also ensured Appen was booted out of the ASX 100 Index, likely further reducing buying pressure.

Additionally, Appen is a company that reports in US dollar terms. And the Aussie has spent the past year mostly rising against the greenback. This is another headwind the company has had to face.

Finally, an announced restructure hasn’t exactly calmed investors either. My Fool colleague James revealed earlier this month that a large institutional investor had pulled the plug on an $8 million parcel of shares.

Where to next for the Appen share price?

One potential catalyst for Appen that may become relevant in the near term is a potential takeover offer. As my Fool colleague Tristan covered earlier this month, broker Citi has described Appen as a takeover target due to its current depressed share price.

The broker noted that Appen’s rival Lionbridge has recently been acquired at a 16x – 20x earnings multiple, which makes Appen’s current multiple of 13x look objectively attractive.

We’ll have to wait and see if anything comes of this speculation, but it’s certainly a situation worth keeping in mind. Especially if you’re currently an Appen shareholder.

At the current Appen share price of $12.39, the company has a market capitalisation of around $1.55 billion.

The post Here’s why the Appen share price is down 50% in 2021 so far appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares to rocket when COVID Delta passes
• 2 exciting ASX tech shares that could be buys
• ASX 200 up, Evolution Mining drops, Appen rises
• Top broker says Appen (ASX:APX) might be a takeover target at this share price
• 5 things to watch on the ASX 200 on Friday

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. 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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The Carpentaria Resources Ltd (ASX: CAP) share price is starting the week off with a bang. This comes after the mineral exploration company provided an update on its entitlement offer announced on 6 July.

At the time of writing, Carpentaria shares are up 9.68% trading at 17 cents.

What did Carpentaria update the ASX with?

In today’s statement, Carpentaria advised it has raised roughly $11.83 million through its entitlement offer. This represents an interim shortfall of $15.62 million, with the remaining amount to be issued to underwriter Shaw and Partners.

The $27.45 million offer was presented to shareholders following the company’s successful $35.6 million placement.

Together, the combined funds will be used for the Hawsons Iron Project bankable feasibility study. 

According to Carpentaria, the Hawsons project, near Broken Hill, has been identified by independent analysts as the world’s leading undeveloped high-quality iron ore concentrate and pellet feed project.

A pre-feasibility study completed in 2017 revealed the open-pit mine had a probable magnetite iron ore reserve of 755 million tonnes.

Carpentaria has a 68.69% interest in the project, with the remaining 31.31% owned by Pure Metals.

Carpentaria executive chairman Bryan Granzien previously commented:

Early in the year, we carried out strategic planning sessions in respect of the Hawsons Iron Project and its financing. We developed a plan and are carrying it out. BFS funding is a significant part of that plan, and we are confident this will lead to the successful development and operation at Hawsons.

The entitlement offers allowed participating shareholders to subscribe at 15 cents per share for every 2.6 Carpentaria shares. Once the shortfall has been completed, it’s expected that 182.98 million shares will be added to the company’s registry.

Carpentaria will release the final shortfall number to the ASX sometime later this week.

About the Carpentaria share price

Since the beginning of May, the Carpentaria share price has soared to astronomical levels. Just this month, the company’s share price touched a multi-year high of 22.1 cents. Over the past year, Carpentaria shares are up more than 650%, and 300% year-to-date.

Carpentaria commands a market capitalisation of roughly $83 million, with a total number of 489 million shares on issue.

The post Why the Carpentaria (ASX:CAP) share price is rocketing 9% today 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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