The AWN Holdings Ltd (ASX: AWN) share price is rocketing today. This comes after the company provided investors with an update on its 46.8% owned subsidiary, VivoPower.

Headquartered in London, VivoPower is an international company that delivers comprehensive suite of sustainable energy solutions. This includes battery technology, electric vehicle, solar and critical power services.

The AWN share price touched a 52-week high of $1.70 in morning trade, before retracing after some profit taking. At the time of writing, the funds management company’s shares are up 14.49% to $1.58.

What’s pushing the AWN share price higher?

In today’s release, the company advised its subsidiary, VivoPower has completed its acquisition of Tembo. This follows the recent board decision which gave the green light for the remaining 49% stake in the specialist electric battery and off-road vehicle company. VivoPower paid US$2.2 million and issued 15,793 VivoPower shares to Tembo management.

Previously, VivoPower took a 51% ownership of Tembo during October last year.

As a result of the latest acquisition, VivoPower will allocated US$10.9 million of its capital to invest in Tembo. The funds will be injected in stages, dependent on Tembo reaching its quarterly commercial targets. This will allow Tembo to ramp up production efforts to fulfil customer orders and deliveries in a timely manner.

In addition, VivoPower recently reached a distribution agreement with partner, GB Auto Group, in Australia.

The landmark deal is expected to provide revenues of up to US$250 million during the first 4 years. VivoPower highlighted that when factoring in the converted Toyota vehicles, the contract is the largest of its kind in Australia.

Under the terms of the contract, GB Auto will be exclusive distributor of the Tembo electric Toyota Land Cruiser, electric Toyota Hilux, and Tembo electric vehicle conversion kits.

Management commentary

Commenting on the acquisition, VivoPower executive chair and CEO, Kevin Chin, said:

Our intention has always been to move to 100% ownership of Tembo, and the GB Auto deal has enabled this to occur at least two years ahead of plan. We are pleased to be able to fund this from existing cash reserves and the issuance of 15,793 VivoPower shares to Tembo’s management shareholders.

We are now focused on scaling up capabilities and executing at pace in order to meet strong customer interest and demand.

More reading

• The AWN Holdings (ASX:AWN) share price is up 36% today. Here’s why

Motley Fool contributor Aaron Teboneras 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 glance at my screens this morning revealed another welcome sea of green for the major share market indexes in Europe and the United States.

In the US, the Dow Jones Industrial Average (DJX: .DJI) led the charge higher closing up 1.57%. That was just enough to edge out the 1.56% gains of the tech-heavy Nasdaq Composite (NASDAQ: .IXIC).

Australia’s share markets are following their overseas peers’ lead, enjoying another positive day. The S&P/ASX 200 Index (ASX: XJO) is up 1.1% in afternoon trading, bringing this week’s gains to 3.6% so far.

Stimulus versus coronavirus

In the ongoing battle between coronavirus and massive government stimulus packages, stimulus appears to be in the driver’s seat, boosting investor sentiment.

News on the pandemic front is mixed.

On the positive side, more than 100 million people have now been vaccinated around the world. And new infection numbers in the virus-ravaged US were down again last week, the third weekly decline in a row.

On the negative side, the COVID variant in the United Kingdom is beginning to mimic the mutations of the South African variant. That strain has proven significantly more resistant to existing vaccines, which could stall the global reopening and economic growth outlook.

However, investor optimism has been stirred by the massive US$1.9 trillion (AU$2.5 trillion) COVID-19 relief package spruiked by President Joe Biden.

That stimulus package is more than double the Republicans’ counter offer. But the Republicans may not be able to stop its passage. Senate Majority Leader Chuck Schumer, a Democrat, said the Senate will soon commence a process to enable passage of the relief package without Republican support.

Also buoying investor sentiment is the apparent early demise of the Reddit army’s market rattling influence.

The Reddit army’s Waterloo moment

There was a time when Napoleon Bonaparte appeared unstoppable. As the Emperor of France from 1804–1815, his armies swept across much of continental Europe. He was, without a doubt, the most disruptive force of his time.

Then came Waterloo, a small town in what’s now Belgium. The Battle of Waterloo would be his last.

The Reddit army, the collective of retail investors linked through Reddit’s WallStreetBets, emerged only a few weeks ago as its own highly disruptive force. At least as far as share markets and hedge funds are concerned.

Targeting institutional short sellers (mainly hedge funds betting against a company’s share price), the group of retail investors drove the price of a handful of highly shorted shares through the roof.

Gaming vendor GameStop Corp (NYSE: GME) drew some of the most investor interest and media attention. The GameStop share price peaked last Wednesday 27 January at a record high of US$347.51. That represented an eye-popping 1,915% gain in 2021.

But in a sign the Reddit army looks to be having its own Waterloo moment, the GameStop share price has crashed 74% since last Wednesday’s close. Shares plummeted 60% yesterday (overnight Aussie time) alone. And GameStop’s share price is down another 5% in afterhours trading. Though, mind you, that’s still up 394% in 2021.

Movie and entertainment company AMC Entertainment Holdings Inc (NYSE: AMC) was another highly shorted share the Reddit army sought to ‘rescue’. Last Wednesday the AMC Entertainment share price surged 301%. Yep, in one day

Since that high, AMC shares have lost 61%, dropping 41% yesterday. Despite the big retreat, for 2021 the AMC share price remains up 289%.

Even ASX-listed Unibail-Rodamco-Westfield (ASX: URW) shares got caught up in the action, via the company’s links to its European-listed shares which had been highly shorted. Last Thursday, shares of the retail landlord leapt 15% higher as the Reddit army took aim.

With a much smaller surge in its share price, Unibail has held up better with the Reddit army’s pullback, down 4% this week.

The massive losses in recent days for shares like AMC Entertainment and GameStop will come as bad news for investors arriving late to the party. But Megan Horneman, director of portfolio strategy at Verdence Capital Advisors, points out that more broadly, investors will be relieved (quoted by Bloomberg):

There’s optimism brewing underneath. The fact that markets have cooled down a bit with the retail-trading frenzy, that’s giving a little bit of optimism. Anytime there’s more stability to markets, there’s a breath of relief of all investors.

The Reddit army’s Waterloo moment won’t come as a surprise to Mark Taylor, a sales trader at Mirabaud Securities. According to Taylor:

The short squeeze momentum met its inevitable end. It seems reasonably clear that as the cheerleading and rage against the machine dies down, the man on the street is left holding the bag again.

Personally, I watched the extraordinary share price surges in some of the shares targeted by the Reddit army from a safe distance.

Sure, the daily gains of several hundred percent were appealing. But so is watching someone win big in the casinos.

To me it’s like letting your roulette chips ride on black in hopes of doubling your money over and over. As Mirabaud Securities’ Taylor said in the quote above, that kind of investment philosophy is destined to meet its inevitable end.

More reading

• Millionaire maker! Rent.com.au (ASX:RNT) share price now up 300% in a week
• Here’s what could really feed a stock market bubble
• GameStop (NYSE:GME) dominates the US shares ASX investors have been buying
• Why investors should look beyond the Reddit army to these ASX fundamentals
• Why ASX silver shares like Silver Mines (ASX:SVL) are falling today

Motley Fool contributor Bernd Struben 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 Raiz Invest Ltd (ASX: RZI) share price is flying more than 16% higher today, following a positive trading update from the company.

What did Raiz announce?

Raiz provided the market with an update on its performance for January 2021. The fintech company is a mobile-focused micro-investing platform that operates in Australia, Indonesia and Malaysia.

In its release, Raiz said total funds under management (FUM) in Australia had a growth spurt of 5.5% for the month, bringing total FUM to $639.08 million.

In addition, the company reported a 9.5% increase in active customers in Australia to a total of 376,198 users. Strong growth in active customers was also achieved in Indonesia and Malaysia, with the company reporting a 15.6% and 21.8% increase in users for January respectively.

The company also launched its custom portfolio in late January. According to management, more than 3,200 clients have engaged the new service, representing more than $14 million in Australian FUM.

More about Raiz

The company’s platform enables users to micro-invest the remaining round up of everyday purchases in exchange-traded funds (ETF). It also allows users to open a superannuation fund.

The company’s mobile financial platform offers users the ability to invest in a range of different funds, depending on the user’s risk tolerance. Each fund allocates across a wide variety of financial products including Australian and international shares, fixed-interest investments and cash. Raiz recently added a hyper-aggressive ‘Sapphire’ portfolio which included a 5% exposure to bitcoin.

Raiz charges a flat monthly investment fee for each user. As a result, FUM and active customers are key metrics to the company’s ability to generate recurring revenue.

The Raiz share price has surged more than 63% since December 2020. At the time of writing, the Raiz share price is trading at an intraday high of $1.54, up 16.16%.

More reading

• Why the Raiz (ASX:RZI) share price is climbing today

Motley Fool contributor Nikhil Gangaram 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 Rent.com.au Ltd (ASX: RNT) share price is at it again.  Rent shares are currently up a whopping 42.31% today to 18 cents a share. That kind of gain is pretty impressive in itself.

If you add the company’s stunning 200% share price bump yesterday, things look pretty good for Rent.com.au shareholders. After today’s rise, Rent’s share price gains just this week amount to more than 330%. That means a $10,000 investment just last week would be worth as much as $33,000 today. Not a bad return for 5 days of waiting!

Today’s Rent.com.au share price represents the highest valuation the company has traded at since June 2016. It gives Rent a market capitalisation of more than $63 million.

So what’s going on here?

Bond, rental bond

Rent.com.au is an online marketplace that seeks to connect renters and landlords. The site is in a similar vein to REA Group Ltd‘s (ASX: REA) realestate.com.au. It allows landlords to list their properties for lease, and gives renters the opportunity to find their ideal property. The company also has various online tools like RentPay and RentQuotes that aim to assist these processes.

Yesterday, we covered the reasons behind Rent.com.au’s sudden surge in value.

To recap, investors got very hot under the collar when the company announced that ‘Australian tech entrepreneur’ Bevan Slattery had made a $2.75 million investment in Rent.com.au. Mr. Slattery received 55 million shares under the agreement, priced at 5 cents apiece.

Perhaps the biggest winner on the ASX this week has indeed been Mr. Slattery. Since this investment is now worth more than triple what he laid out. As we discussed yesterday, Mr. Slattery has a long track record of investing in early-stage companies. His resume includes names like NextDC Ltd (ASX: NXT) and Megaport Ltd (ASX: MP1).

Why is the Rent.com.au share price rocketing again today?

There have been no major developments for Rent.com.au since yesterday.

That essentially means we can assume that investors might have noticed what went on with Rent shares yesterday, and are piling on to get a slice of the action.

As we saw with GameStop Corp (NYSE: GME) shares last week, and the short-lived ‘silver squeeze’ this week, the current market conditions are certainly encouraging many investors to chase the chance of a quick return.

More reading

• Why Amcor, Carsales, Rent.com.au, & Temple & Webster are surging higher
• Here’s what could really feed a stock market bubble
• 3 outstanding ASX shares growing rapidly
• ASX 200 jumps 1.5%, RBA doubles QE, Afterpay soars
• GameStop (NYSE:GME) dominates the US shares ASX investors have been buying

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 recommends MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO and REA 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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Share investors love to talk about their successes. It doesn’t matter if they’re professional or retail investors — the stories you’ll hear at the barbecue are about those ASX shares that shot up to 5, 10 times their purchase price.

But every portfolio has duds and missed opportunities. No investor has a 100% strike rate.

So it’s refreshing to hear from professional investors which moves they regret.

Redpoint chief executive and head portfolio manager Max Cappetta wished he’d purchased Afterpay Ltd (ASX: APT) shares when they were cheap.

“I must admit it’s a little bit humbling when the stock that you choose in a sector, like Xero Limited (ASX: XRO), goes up 100% and it’s the under-performer in the sector by a factor of 10!”

Cappetta’s memories of the dot-com bubble possibly made him a bit shy about the buy now, pay later share.

“Having lived through and managed an Australian small caps product through 1999 and 2000, I’ve seen how the market can re-price some of these names,” he told The Motley Fool’s Ask A Fund Manager this week.

“We were a little bit slow, particularly in this portfolio, to get a position. We currently do [hold Afterpay], but we are underweight – it’s more there for risk purposes.”

The Afterpay share price was around $38 one year ago. Then during the COVID-19 market crash in March, it fell to as low as $8.01.

It is trading at $145.51 as of Wednesday afternoon.

Afterpay was a value share in March

“I do look at Afterpay and say, ‘In many ways at $10 in mid-March it was a value stock‘. It’s so easy to say now in hindsight,” said Cappetta.

“That’s probably the one stock that, if we had our timing in, we might have had a little bit more invested in it in April and May of last year.”

It’s not like Redpoint didn’t assess Afterpay’s numbers. It just never met the quantitative criteria that Cappetta’s team lives by.

“Its cash flow generation and lack of profitability is a red X for us. It’s hard to obviously get a value on the stock, but even across our metrics it doesn’t look like a valuation opportunity,” he said.

“Growth does seem to be turning more positive of late. That’s why we’ve taken a position over the last 6 months in the stock. Momentum has been quite strong… And the stock has responded very well or the market has responded to news and announcements from the company.”

The higher the Afterpay share price goes, the more polarising the opinions get about where it will end up.

“You know, some believing that the stock is headed to $200, others believing that it’s probably more fair value at $30. No doubt, the truth is somewhere in between,” Cappetta said.

“Exactly which side is going to win out, we’ll just have to wait and see.”

Getting rare earths at the ground level

Similarly, SG Hiscock portfolio manager Hamish Tadgell told The Motley Fool last month that he regrets not getting in on Lynas Rare Earths Ltd (ASX: LYC).

The Lynas share price has shot up 34% since mid-December and more than 100% since the start of October.

“It would have been nice to have get in at the ground level,” Tadgell said.

“I guess the question is whether you’ve missed it or whether it’s going to continue to go [up]. That’s I guess something we’re evaluating.”

Lynas is the only producer of rare earths minerals outside of China.

And that is becoming more of a political consideration for western companies that need the minerals to make electronic and electric devices.

“It’s just recently won a contract with the US Department of Defense to help build a heavy rare earths plant in the US,” said Tadgell.

“[There are] concerns that given China holds 90% of the world’s rare earths, or supplies 90% of the world’s rare earths, and 80% of the rare earths into places like the US – how do you find alternative supply?”

More reading

• Why the Afterpay (ASX:APT) share price is pushing higher again
• The growth of this BNPL ASX share has been outpacing Afterpay (ASX:APT)
• ASX 200 jumps 1.5%, RBA doubles QE, Afterpay soars
• Why Afterpay, Credit Corp, Healius, & Volpara shares are storming higher
• ASX 200 up 0.9%: Credit Corp impresses, Afterpay jumps, bank shares rise

Tony Yoo owns shares of AFTERPAY T FPO, Lynas Limited, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of 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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The Fleetwood Corporation Limited (ASX: FWD) share price is soaring following the release of its preliminary half-year results for FY21. 

Today, the Fleetwood share price reached a 52 week high of $2.48. However, some profit taking has led its shares to slightly retreat to (at the time of writing) to $2.45, up 25%.

So, what did the company announce to cause the Fleetwood share price to push higher?

Performance update

In today’s release, the company highlighted that for the period ending December 31, it has continued its strong cash generation.

Preliminary results for the H1 FY21 term indicated Fleetwood has performed above expectations due to the impact caused by COVID-19.

Unaudited earnings before interest, tax, depreciation and amortisation (EBITDA) is predicted to jump between $15 million and $16 million. Previously, the company issued an EBITDA guidance of $12.8 million at its annual general meeting (AGM) held in November.

Strong cashflow generation is expected to net Fleetwood with a cash positive balance of $64 million. This comes after a first-dividend payment of $11.4 million that will be allocated to shareholders.

The board noted that it will reward investors with a dividend pay out ratio of 100% from its net profit after tax (NPAT) holdings.

The company is scheduled to release its half-year results on 25 February, 2021.

Let’s take a look at Fleetwood’s performance across the 3 business segments it operates in.

Accommodation solutions

In its accommodations solutions business, the Searipple Village in Karratha saw a recovery in occupancy rates early during the half. Major customer Rio Tinto Limited (ASX: RIO) renewed its tenancy contact for its workforce in December for 13 months.

Across to its Osprey Village, rooms remain fully booked, with the company holding a waiting list for potential tenants. Fleetwood said that the demand for its accommodation represents strength in the Port Hedland fly-in fly-out market.

Looking towards the second-half, the company noted that the strong performance will be unable to mimic its accommodation H1 earnings. This is because of rostering stability and additional village capacity at Karratha.

Building solutions

Despite a slow start to the first-half due to COVID-19 restrictions on building activity, the company rebounded later in the term.

Fleetwood secured two important contracts which boosted its order book to $140 million. The first includes a $41.5 million deal to manufacture and supply 460 modular cells for the Prison Infill Expansion Program in Victoria. The second, a $30 million project for Rio Tinto to upgrade its Ti Tree Rail Camp, located 170 kilometres south east of Karratha.

Fleetwood advised that the outlook for its building solutions is strong, and is well placed to benefit from anticipated Government stimulus spending.

RV solutions

Lastly, the RV solutions segment recorded a surge in monthly sales towards the back end of the first-half. The demand in domestic travel using an RV, away from large crowds and hotels, increased because of pandemic fears.

The company believes this market trend will continue to run into the second-half.

Words from the CEO

Fleetwood interim CEO, Andrew Wackett, reaffirmed the company’s continued performance by stating:

The first half result is shaping up as being very pleasing and one that continues our improving operational performance.

All businesses have continued to face significant challenges during the global pandemic, and we are pleased at the way our Company and people have responded. Having three business units and three diverse revenue streams has certainly helped us as a Company to weather the impact.

We continue to generate strong cashflow and our new dividend policy, increasing payouts to 100%, demonstrates to our shareholders we will continue to exercise restraint with our capital management.

Across the business we continue to prioritise sustainably improving margins, increasing utilisation and reducing overheads.

Fleetwood share price summary

The Fleetwood share has gained almost 20% when comparing the last 12 months. The company’s shares dipped to a multi-year low of $1.12 in March, before zooming higher on an upwards trajectory.

Based on the current share price, Fleetwood commands a market capitalisation of roughly $233 million.

More reading

• Why the Crown (ASX:CWN) share price could be hit harder than others today
• ASX 200 Weekly Wrap: Reality (and GameStop) finally hits ASX
• ASX 200 down 0.7%: BHP & Fortescue tumble, Reliance rockets, CSL downgraded
• These ASX dividend shares will help you overcome low interest rates
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras 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 LiveTiles Ltd (ASX: LVT) share price has been a strong performer on Wednesday.

In afternoon trade the intranet and workplace technology software company’s shares are up 17% to 24 cents.

Why is the LiveTiles share price storming higher?

As we covered here earlier today, LiveTiles requested a trading halt this morning amid media reports that private equity firms were interested in launching a takeover approach.

The report claims that the low multiples its shares trade on relative to its peers have caught the eye of international investors.

This afternoon the company confirmed that it receives unsolicited approaches by parties interested in exploring a corporate transaction from time to time.

However, it advised that it is not currently in formal discussions in relation to a control transaction with any third party and will inform shareholders as required under its continuous disclosure obligations.

It also confirmed that it has engaged Credit Suisse and Gilbert & Tobin to advise the company on any potential control transaction should one happen.

Why is the LiveTiles share price underperforming?

There appear to be a number of reasons for the weakness in the LiveTiles share price. One of those is the company’s growth, which has failed to live up to expectations.

In February 2019, LiveTiles stated its aim of organically growing its ARR from $30.9 million to at least $100 million by 30 June 2021.

A year later, the company had dropped the word “organically” but advised that it “continues to pursue its short-term target of $100m in ARR and sees significant market and growth potential beyond this level.”

However, this target has now disappeared without any commentary on the matter. At the end of the second quarter, LiveTiles’ ARR stood at $64.7 million, which is well short of its June 2021 target of $100 million with just a few months left to go.

Another concern has been the company’s cash burn. During the second quarter, LiveTiles posted a net cash outflow of ~$13.6 million, leaving it with just $19.2 million in the bank.

And while $9.8 million of this related to one-off legal and litigation fees, investors appear concerned that LiveTiles will require some form of capital injection in the near future. This may be weighing on investor sentiment somewhat.

More reading

• LiveTiles (ASX:LVT) shares placed in trading halt
• Why Bigtincan, Bubs, LiveTiles, & Treasury Wine shares are storming higher
• Why the LiveTiles (ASX:LVT) share price is avoiding the market selloff
• What’s in store for the ASX tech sector in 2021?
• How to invest in ASX shares in a post-COVID world 

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 LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES 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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The European Metals Holdings Ltd CHESS (ASX: EMH) share price is currently trading at $1.30, up more than 12% so far today. European Metals shares went through the roof following the company’s announcement regarding a private placement worth $7.1 million (before costs). 

European Metals is an Australian and UK-listed mineral exploration and development business. The company is actively pursuing its Cinovec Lithium Project.

The Cinovec Project is located in the Krusne Hore Mountains which divide the Czech Republic from Germany. According to European Metals, mining in this historic region dates back to the 1300s.

The company is presently endeavouring to become one of the lowest carbon footprint producers of battery grade lithium hydroxide and lithium carbonate in Europe.

European Metals share price boosts on $7 million placement news

The European Metals share price is on the move today as the market digests the company’s placement news. According to today’s announcement, the placement includes a significant $5 million contribution from the Luxembourg-based green energy fund, Thematica Future Mobility.

Thematica Future Mobility is a UCITS (Undertakings for the Collective Investment in Transferable Securities) fund with exposure to companies that are focused on, or will substantially benefit from, the transition to clean and sustainable transportation and energy storage solutions.

European Metals announced that it has received “firm commitments” for a placement of approximately 6.45 million CHESS Depository Interests (CDIs) at an issue price of $1.10 per CDI to raise the $7.1 million.

Placement proceeds will support the further development of the company’s Cinovec Lithium Project. According to the company, Cinovec contains the largest hard rock lithium deposit in Europe.

The Cinovec Project is fully funded to final investment decision with approximately 26.7 million euros.

The future of electric vehicles in Europe

Commenting on its investment in European Metals, a Thematica representative said:

The strong growth in European EV sales and the rise of domestic battery cell production is going to require substantial lithium supply in the future. The European Raw Material Alliance (ERMA) has stated its ambition is to have 80% of lithium supply sourced locally – we see European Metals Holdings, that should reach final investment decision in early 2022 post the completion of a definitive feasibility study, as one of the first producers of battery-grade lithium chemicals on the continent and given its large resource, a meaningful contributor to the ERMA target.

Over the past 12-month period, the European Metals share price is up approximately 268%.

More reading

• These 3 ASX mining shares are top risers today

Motley Fool contributor Gretchen Kennedy 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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Amazon.com Inc (NASDAQ: AMZN) shares continued to rise in after-hours trading this morning (our time), despite news that Amazon founder and CEO Jess Bezos will be stepping back from the company.

This morning, we reported the shock news that Mr Bezos, who has lead Amazon since founding it way back in 1994, is planning to step down as CEO later this year. Mr Bezos will move to the less-active ‘executive chair’ role, while the head of the fast-growing Amazon Web Services Andy Jassy will step up to the CEO position.

Amazon and Bezos

Mr Bezos has long been synonymous with Amazon. After being the ‘brains behind Amazon’ as its founder, he has headed the company for its entire history. He has also become the world’s richest person in the process, a title he has held on and off for years now. That’s despite having to split his massive Amazon stake in a well-publicised divorce a few years ago with ex-wife Mackenzie Scott.

According to Forbes, Ms Scott is now one of the richest people in the world, and the world’s third-richest woman with a fortune of close to US$60 billion. However, Jeff Bezos remains the wealthiest person in the world with a fortune of US$196 billion after a recent brawl with Tesla Inc (NASDAQ: TSLA) CEO Elon Musk for the title.

In the announcement, Bezos stated that “as exec chair, I will stay engaged in important Amazon initiatives”. But he also flagged that he is now more excited to spend some of his time on other projects like “the Day 1 Fund, the Bezos Earth Fund, Blue Origin, The Washington Post, and my other passions”.

The king is dead…

But investors don’t seem too fazed by this momentous changing of the guard at Amazon. In fact, Amazon shares closed 1.11% higher for the US trading day, including up another 0.3% after hours after the announcement was made.

At the current eye-watering stock price of US$3,380, the company is up 6% year to date, and up more than 68% over the past year. Since 1997, Amazon shares are up a mind-blowing 195,275%. That return would have turned a $1,000 investment at the time into almost $2 million today.

However, Bezos’ departure wasn’t the only news out of Amazon today. The company also announced its quarterly results for the quarter ending 31 December 2020 this morning.

This report included massive beats on sales and net income. On the former, Amazon crossed US$100 billion in sales for the first time ever in a quarter. On the latter, Amazon announced US$7.2 billion in net income, up from just US$3.3 billion over the same period in 2019. That was clearly enough for investors to adopt a ‘the king is dead, long live the king’ attitude.

More reading

• Jeff Bezos quits as Amazon CEO
• GameStop (NYSE:GME) dominates the US shares ASX investors have been buying
• Forget growth or value: Here’s a neutral way to pick shares
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Securities in Core Lithium Ltd (ASX:CXO) have entered voluntary suspension after the company released an announcement earlier today.

What did Core Lithium announce?

Core Lithium released an announcement informing investors that the company has requested a voluntary suspension.

According to the media release, Core Lithium has requested that securities remain in voluntary suspension. This will be in place until an announcement is released to the market regarding a share placement.

The media release noted that an announcement is expected no later than 4 February, 2021.

In a previous trading halt request on 1 February, Core Lithium had advised investors of a potential voluntary suspension.

Why has Core Lithium entered voluntary suspension?

According to today’s media release, the voluntary suspension is designed to provide Core Lithium’s management with more time to complete the share placement.

Earlier this week, Core Lithium requested a trading halt for its securities, pending further details on a share placement. Despite slating 3 February as the announcement date, the company has not provided investors with further details.

An article published in The Australian Financial Review earlier this week speculated on Core Lithium’s potential equity raising.

Stockbrokers Taylor Collison and Bell Potter have reportedly managed to raise as much as $30 million from investors. The article noted that Core Lithium was looking to undertake placement at 25 cents per shares. New shares expected to be accompanied by one-for-two option.

Core Lithium has not provided a full explanation for the share placement. The funds raised are, however, expected to advance the company’s Finiss Lithium Project in the Northern Territory.

More information of the Core Lithium share price

Core Lithium is an emerging Australian lithium developer. The company’s share price has soared more than 290% since the end of December 2020. Core Lithium owns 100% of it’s flagship Finniss Lithium Project.

In recent market update, Core Lithium noted that the project was almost construction ready. The company also noted that start-up capital expenditure is expected to be around $85 million. This could translate to $160 million annual revenue.

At the time of writing shares in Core Lithium remain in voluntary suspension, having last traded at 34.5 cents per share.

More reading

• Why the Core Lithium (ASX:CXO) share price is in a trading halt
• Here’s why the Core Lithium (ASX:CXO) share price stormed 19% higher today
• Afterpay and Creso Pharma were among the most traded shares on the ASX last week
• Here’s why the Core Lithium (ASX:CXO) share price rocketed 45% higher today

Motley Fool contributor Nikhil Gangaram 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.

The post Shares in Core Lithium (ASX:CXO) enter voluntary suspension appeared first on The Motley Fool Australia.

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