Fortescue Metals Group Limited (ASX: FMG) has been one of the best shares to own in 2020. Whilst the S&P/ASX 200 Index (INDEXASX: XJO) is still down around 10.7% year to date, the Fortescue share price is actually up nearly 30% since 1 January.

High iron ore prices, a supply squeeze in Brazil and an ultra-low-cost basis have all helped Fortescue achieve multiple all-time highs in a year where most ASX shares have tanked.

When a company is flush with cash and surrounded by potentially distressed competitors, the merger and acquisition (M&A) rumour mill often go into overdrive. And that’s what we are being treated to a slice of today.

A Fortescue merger down south?

According to reporting in the Australian Financial Review (AFR), analysts at Citi Bank have been running the numbers on a potential merger of Fortescue Metals with South32 Ltd (ASX: S32).

South32 is a ~$10 billion diversified ASX miner that was spun out of BHP Group Ltd (ASX: BHP) back in 2015. Back then BHP’s management restructured the businesses to focus on its ‘core’ assets of oil, coal, copper and iron ore.

Everything else was shunted off into the newly-formed South32, which became a separately listed entity in its own right. Today, that ‘everything else’ includes metallurgical coal, lead, alumina, aluminium, nickel, zinc and silver operations.

Fortescue gets more than 95% of its earnings from purely iron ore mining. Citi Bank analysts clearly see South32 complementing Fortescue, diversifying the company away from iron ore.

Would Fortescue shares benefit from a merger?

In a sense, this could be a great move by Fortescue in my view. You have to make hay while the sun shines. Right now, Fortescue is getting so much sun it’ll soon have the best winter tan in Australia. The company is cashed up and is benefitting from the highest iron ore prices in years.

Iron ore is also a highly volatile commodity. It has whipsawed between US$40 and US$120 a tonne over the past 5 years. Diversifying through M&A right now makes great sense from this perspective.

However, South32 has had problems of its own in recent years. Its shares are sitting not too far from 4-year lows right now. The company is not benefitting from the same kind of commodity pricing tailwinds as Fortescue. It’s coal mines in South Africa have also faced significant production issues in recent years and the company is now trying to exit the market completely.

Foolish takeaway

Fortescue is one of the best ASX miners in the country in my view, and I think that its shareholders would benefit enormously if this rumoured acquisition comes to pass. Andrew Forrest, Elizabeth Gaines and the rest of Fortescue’s management team have almost as many runs on the board as Sir Donald and would bring some fresh energy to South32 in my view. But we’ll have to wait and see if Fortescue acts on this idea or looks for greener grass elsewhere.

More reading

• Why the AMP share price is up 9% today
• Leading fund manager names 3 undervalued Chinese shares to buy
• Leading brokers name 3 ASX 200 shares to sell today
• ASX shares in danger? Why the gold price is creeping towards all-time highs
• Renewed US-China trade war puts these ASX 200 stocks in the firing line

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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 200 shares:

Evolution Mining Ltd (ASX: EVN)

According to a note out of UBS, its analysts have retained their sell rating and cut the price target on this gold miner’s shares to $4.90. The broker notes that Evolution has downgraded its production guidance after recent drilling at its Mt Carlton operation led to a reduction in its life of mine plan. In light of this and the short life of some of its assets, the broker doesn’t believe that Evolution’s shares deserve to trade at a premium to its peers. The gold miner’s shares are changing hands at $5.24 this afternoon.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Citi reveals that its analysts have retained their sell rating and $11.70 price target on this iron ore producer’s shares. The broker believes the market is expecting too much from iron ore prices over the medium term. It suspects that prices will soften when steel production peaks and demand falls. And while the miner is busy with exploration activities, it doesn’t expect this to result in meaningful project development for a number of years. Fortescue’s shares are up at $13.98 on Tuesday.

Stockland Corporation Ltd (ASX: SGP)

Another note out of Citi reveals that its analysts have retained their sell rating and $3.21 price target on this property company’s shares. According to the note, the broker is concerned that its retail property assets could experience a sizeable decline in valuations in the short term. It also notes that Stockland has declared a distribution notably lower than its guidance and has indicated that its CEO will soon retire. The Stockland share price is trading at $3.67 this afternoon.

More reading

• ASX shares in danger? Why the gold price is creeping towards all-time highs
• Renewed US-China trade war puts these ASX 200 stocks in the firing line
• ASX 200 flat: Westpac tumbles, Woolworths reveals strong sales growth, Challenger sinks
• The A2 Milk share price is up 27% in 2020, but is it time to buy?
• These ASX stocks might be a better option than Carsales.Com

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Kalamazoo Resources Ltd (ASX: KZR) share price is flying higher today on the back of an acquisition from Northern Star Resources Ltd (ASX: NST).

Yesterday, Northern Star announced its decision to divest the Mt Olympus Project, comprising most of the Ashburton Project in Western Australia, to Kalamazoo.

While Northern Star shares jumped 4% on the news, Kalamazoo shares were stuck in a trading halt and only resumed trading this morning. At the time of writing, the Kalamazoo share price has rocketed 42% to 69 cents.

Kalamazoo is a gold and base metals explorer. Its focus is on identifying commercial mineral deposits to explore at its Victorian gold projects and Western Australian gold-base metals projects.

What’s the deal?

Kalamazoo has acquired the Ashburton Gold Project, which is located on the southern edge of the Pilbara Craton in Western Australia.

The project produced 350,000 ounces of gold between 1998 and 2004. It currently holds a JORC Code (2012) resource estimate of 20.8 million tonnes at 2.5 grams per tonne gold for a contained 1.65 million ounces.

Under the terms of the agreement, Kalamazoo will pay Northern Star deferred contingent cash consideration of $17.5 million. This consists of:

• $5 million on mining of the first 250,000 tonnes of ore;
• A 2% net smelter royalty (NSR) on the first 250,000 ounces of gold produced, with a 0.75% NSR on any subsequent gold produced from the tenements; and
• The same NSRs on any other metals produced from the tenements.

Kalamazoo views the acquisition as an important addition to its Pilbara gold assets. And in a similar investment strategy to the acquisition of its flagship Castlemaine Gold Project in Victoria, the deal structure enables the company to invest funds directly “into the ground”.

The company believes the project has significant regional greenfields and brownfields exploration potential; a large drilling, geological, geochemical, and geophysical database; and numerous walk-up drilling targets.

The exploration team will be led by Kalamazoo director Paul Adams, who was previously the managing director of Spectrum Metals. Exploration focus will include an immediate review of the exploration datasets, field reconnaissance of identified prospect areas, and target generation.

Management commentary

Commenting on the deal, Kalamazoo chair and chief executive Luke Reinehr said:

“This is a tremendous outcome for our shareholders and an outstanding addition to our prospective portfolio of gold projects in the Pilbara. Kalamazoo is in the unique position of having major assets and tenure in two of the most highly rated gold exploration provinces in the world today – the Victorian Goldfields and the Pilbara.”

Meanwhile, Northern Star executive chair Bill Beament said:

“The Ashburton project no longer fits in Northern Star’s portfolio but still has strong potential on both the exploration and production fronts. The royalty structure also enables Northern Star to retain an exposure to the project.”

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why Austal, James Hardie, Northern Star, & Ramelius are storming higher
• A $73m boost sends the Austal share price to the top of the ASX 200 today
• 5 things to watch on the ASX 200 on Monday
• 5 ASX shares that would’ve made you a fortune in 5 years

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Gold price is on the rise!

The S&P/ASX 200 Index (INDEXASX: XJO) is having a pretty flat day so far. At the time of writing, the ASX 200 is flat after ‘sine-curving’ up and then back down this morning. But that’s not what has caught my eye in early morning trade.

Instead, it’s a very special metal of the yellow variety that has me choking my coffee this morning.

Yes, gold is on the move this week and are creeping towards all-time highs. In early trading this morning, gold hit US$1,760 an ounce for the first time since 2012. It has since pulled back slightly but is still sitting around US$1,750 an ounce at the time of writing.

Why is gold suddenly in demand?

This may seem to have come out of the blue, but gold had actually been in its own mini bull market for a while now. Since dropping below US$1,200 an ounce back in September 2018, gold has been steadily climbing since. According to macrotrends.com, the commodity rose nearly 19% in 2019 and are up another 13.5% in 2020 so far.  There was a moderate dip during the ‘rush to cash’ we saw during the March market sell-off, but this was quickly bought up and gold has resumed surging. We’re now just below the all-time high of U$1,896.50 that we saw back in 2012.

I think gold is in demand right now for several reasons. Many investors (particularly our friends over in the United States) are very worried about inflation. The US government has been ploughing an unprecedented amount of cash into financial markets over the last few months in order to shore up markets in the face of the coronavirus pandemic. This is keeping the markets afloat right now, but printing money usually leads to long term inflation if history is anything to go by. And gold is traditionally viewed as a good asset to hold during inflationary periods.

Low-interest rates are also a factor. Almost every advanced economy around the world right now has interest rates at 0% or very close to it (our own cash rate is currently 0.25%). Low-interest rates make using cash and debt instruments very unattractive s investments. Why bother buying a government bond when it yields you less than 1%?

That leaves property and shares as likely the only real assets worth holding right now. And if you’re worried about having all of your money in these ‘risky’ assets, gold is the only real alternative.

Foolish takeaway

Whilst some investors like to diversify their wealth with gold, I think it’s not really a path that most ASX investors should follow. Warren Buffett likes to say that gold has no real use or ability to generate wealth – it’s simply worth what someone else is willing to pay for it at any one time. That’s why he sticks with good-quality shares, and that’s why I think most ASX investors should follow his example.

Take heed, though. A rising gold price could indicate that investors are seeing trouble for the share market on the horizon. So just make sure you’re prepped for anything in this market!

More reading

• Leading brokers name 3 ASX 200 shares to sell today
• Renewed US-China trade war puts these ASX 200 stocks in the firing line
• ASX 200 flat: Westpac tumbles, Woolworths reveals strong sales growth, Challenger sinks
• The A2 Milk share price is up 27% in 2020, but is it time to buy?
• These ASX stocks might be a better option than Carsales.Com

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Afterpay Ltd (ASX: APT) share price dropped from $40.50 on February 19 to just $8.90 on 23 March in the early phase of the coronavirus pandemic. That’s a whopping decrease of 78%.

Since then the Afterpay share price has been on an amazing uphill climb. At the time of writing it is trading at $57.94. That’s an increase since late March of 550%!

A positive recent business update in mid-April has definitely helped to push the Afterpay share price higher.

Afterpay has proved many critics wrong. It has continued to deliver explosive underlying sales growth despite subdued economic times.

Is it too late to buy shares in Afterpay? Or is there still a long-term opportunity for investors right now?

What other factors are driving the Afterpay share price higher?

A very positive update for its US operations in late May also helped push its share price higher. Almost 9 million US consumers have now joined its platform since its launch over 2 years ago.

In addition, WeChat owner Tencent Holdings recently become a significant shareholder in Afterpay. The popularity of the WeChat app in Asia is massive. This could potentially be an important stepping stone for Afterpay in entering the Asian market in the future.

The buy-now, pay-later (BNPL) provider continues to make significant investments to scale the business into a world-class global platform. This has included a number of recent senior management hires, and Afterpay is investing heavily in marketing. It also has brought on board a growing number of global brands such as Samsung and Foot Locker.

Afterpay also recently launched a partnership with Apple that will enable its platform to be integrated with Apple Pay. This will further simplify the process of using Afterpay and could assist in increasing adoption and usage, particularly in the US market.

Competition growing, but Afterpay’s scale advantage is still significant

Afterpay is still growing strongly in its home market of Australia and New Zealand (ANZ). However, it is now starting to face growing competition from other BNPL providers such as Zip Co Ltd (ASX: Z1P) and Openpay Group Ltd (ASX: OPY).

Despite this, Afterpay’s size and scale superiority provide a distinct advantage in winning major deals.

Afterpay is still 6 times bigger than its nearest rival Zip Co, and more than 60 times bigger than Openpay. The BPNL provider has a current market capitalization $15.5 billion, compared to only $2.34 billion for Zip Co and to only $269 million for much small rival Openpay.

Is it too late to buy Afterpay shares?

With the Afterpay share price now reaching over $55, it is now looking a bit pricey. Well factored into Afterpay’s current share price are expectations for very strong growth to continue over the next few years. However, I believe that Afterpay is relatively well-positioned to achieve this goal.

Afterpay is expanding rapidly into the massive US market and could possibly expand into mainland Europe and Asia in the future.

Further expansion globally in the BPNL sector led by Afterpay, is also likely to see further investment injected into this sector globally over the next few years.

More reading

• Zip Co share price higher despite insiders selling almost $48 million shares
• Is the Afterpay share price a boom or a bubble?
• How to try and beat the market with ASX shares
• Afterpay and 2 more ASX 200 shares to watch this week
• These 5 ASX shares were last week’s top performers

Phil Harpur owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

Alphabet’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google is forecast to see a decline in U.S. advertising this year due to a halt in travel amid the COVID-19 pandemic. 

According to a new report by research firm eMarketer covered by the media, Google is poised to see U.S. advertising revenue fall 5.3% in 2020, marking the first time it declined year over year since the research firm began tracking Google’s ad sales in 2008. Google is faring better than the overall U.S. advertising market, which eMarketer predicts will see a 7% decline year over year in 2020. For all of 2020, eMarketer expects the tech stock to have U.S. ad revenue of $39.58 billion. For 2019, Google weighed in with ad sales of $41.8 billion, CNBC reported. 

Google’s advertising business in the U.S. is getting hit hard given its reliance on the travel industry. With travel coming to a halt earlier in the year amid the pandemic and with people still wary about boarding planes, advertisers have been reining in their spending. YouTube ad sales are expected to continue to grow this year, but it won’t be enough to offset the overall decline in ad spending, noted eMarketer. 

“The biggest single culprit here is the travel industry, which has been both hardest hit by the pandemic generally, and has concentrated spending on Google in the past,” Nicole Perrin, principal analyst at eMarketer, told The Wall Street Journal.  

At the same time that Google is experiencing a decline in ad sales, its rivals Facebook (NASDAQ: FB) and Amazon.com (NASDAQ: AMZN) are getting a bigger piece of the pie. eMarketer expects both companies to see an uptick in ad sales this year despite the pandemic. Looking out to 2021, eMarketer does expect Google’s U.S. ads to pick up again, growing more than 20%. In 2022, it predicts ad sales will be up 11.8%, noted CNBC. 

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

More reading

• Can these 5 FY20 dogs of ASX 200 bounce back in the new financial year?
• How I would build a balanced portfolio worth $100,000 with 10 ASX shares

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and Facebook and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It has been a very volatile day of trade for the S&P/ASX 200 Index (ASX: XJO). After a number of ups and downs, in early afternoon trade the benchmark index is up slightly to 5,945.6 points.

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

The Altium Limited (ASX: ALU) share price is down almost 3% to $32.71. Investors have been selling this electronic design software company’s shares this week after it warned that it is likely to fall short of consensus estimates in FY 2020. The latter part of the financial year, which is historically a strong period for sales, has been impacted by a second wave of coronavirus.

The Austal Limited (ASX: ASB) share price is down 4.5% to $3.51. This morning analysts at Ord Minnett retained their lighten rating but lifted their price target on this shipbuilder’s shares to $2.75. Although it sees the U.S. government’s investment in its U.S. operations as a positive, it doesn’t appear to see it as a game changer.

The Challenger Ltd (ASX: CGF) share price has tumbled 8% lower to $4.89. This morning the annuities company’s shares returned from a trading halt after the successful completion of its $270 million institutional placement. These funds were raised at $4.89 per new share, which represents an 8.1% discount to its last close price of $5.32. Challenger also announced that it has no plans to pay a final dividend in FY 2020.

The Mesoblast limited (ASX: MSB) share price is down 6.5% to $3.46. This is despite there being no news out of the biotech company. However, its shares have been very strong performers over the last three months. Since this time in March the Mesoblast share price has risen over 200%. This could have led to a spot of profit taking from investors today.

More reading

• ASX 200 flat: Westpac tumbles, Woolworths reveals strong sales growth, Challenger sinks
• Challenger share price sinks 7% lower following equity raising and final dividend update
• 5 things to watch on the ASX 200 on Tuesday
• Is the Challenger share price a buy?
• ASX Stock of the Day: Austal share price surges 9% on US Government agreement

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 Altium and Austal Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Our market slumped on reports that US and China may be headed for a new trade war. But some ASX stocks will be hit harder than others if the speculation is accurate.

The S&P/ASX 200 Index (Index:^AXJO) surrendered all of its morning gains and fell 0.8% in late morning trade.

Investors got spooked after US President Donald Trump’s key trade advisor Peter Navarro is reported to have declared the Sino-US trade deal “over”, according to Bloomberg.

New US-China trade war upon us?

Navarro broke the bad news to Fox News during an interview when he was asked about the China deal.

The news sent US stock futures tumbling as well with the Dow Jones Industrial Average tipped to fall over 1% when trade resumes later tonight.

It’s unclear whether the trade agreement between the two sides is really over as Navarro’s comments comes days after Chinese officials recommitted to the deal during a meeting with US Secretary of State Michael Pompeo in Hawaii.

China increased the amount of US agriculture products it will buy to US$36.5 billion from US$24 billion under phase one of the deal, reported the South China Morning Post.

Take news with pinch of salt

Investors should treat the news with some scepticism, in my opinion. If the trade deal was off, I believe it will be boldly stated on Trump’s Twitter feed and not just to Fox News.

I can’t help but feel Navarro’s comment was meant to play to Trump’s support base after his disastrous re-election campaign rally in Tulsa, Oklahoma.

Further, Trump needs China to step up its buying program to win over key agriculture producing states.

The Chinese also may not want to upset Trump. Not because they aren’t up for a trade fight, but because I think they rather deal with Trump given his knack for striking deals and willingness to compromise to advance his cause.

Any other president might be less flexible and more driven by ideology.

ASX stocks worst hit by US-China trade war

But if I am wrong and trade tensions start to escalate again, this will be bad news for local and global investors – especially as we are trying to control the COVID-19 fallout.

While all sectors on the ASX 200 have slipped into the red after Navarro’s remarks were published, some are likely to suffer more.

One that will be in the firing line is global logistics group Brambles Limited (ASX: BXB). A trade war will cut global trade and impact on the group’s bottom line.

Another to suffer is alcoholic beverage group Treasury Wine Estates Ltd (ASX: TWE). The group has significant exposure to both the US and China.

Its wines are also impacted by discretionary spend, so if consumer sentiment is hurt by trade tensions, Treasury Wine’s sales will suffer too.

A drop in economic output from a trade war will also put pressure on base metals – more so than bulks. Base metals are used in industrial production, and lower demand for goods means less demand for commodities like copper and nickel.

That will be bad news for the likes of South32 Ltd (ASX: S32) and IGO Ltd (ASX: IGO).

More reading

• ASX 200 flat: Westpac tumbles, Woolworths reveals strong sales growth, Challenger sinks
• The A2 Milk share price is up 27% in 2020, but is it time to buy?
• These ASX stocks might be a better option than Carsales.Com
• How to try and beat the market with ASX shares
• Is it time to buy BHP shares right now?

Motley Fool contributor Brendon Lau owns shares of Brambles Limited and South32 Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has given back its strong morning gains and is trading flat at lunch. At the time of writing the benchmark index is at 5,944.3 points.

Here’s what has been happening on the market today:

Bank shares weigh on ASX 200.

The big four banks have taken a tumble today and are weighing heavily on the ASX 200. All four banks are in the red at lunch, with the Westpac Banking Corp (ASX: WBC) share price the worst performer. Australia’s oldest bank is down 1.3% at the time of writing. One broker that would see this as a buying opportunity is Morgans. It has just named Westpac as its top pick in the group.

Woolworths update.

The Woolworths Group Ltd (ASX: WOW) share price is trading lower at lunch after the release of an update this morning. The conglomerate announced major investments to its supply chain which it ultimately expects to lead to lower costs in the future. It also revealed strong fourth quarter sales growth across the business and its guidance for FY 2020. Woolworths currently expects to report earnings before interest and tax (post-AASB 16 and before significant items) of $3,200 million to $3,250 million.

Challenger shares tumble.

The Challenger Ltd (ASX: CGF) share price has crashed 9% lower after returning from its trading halt. This morning the annuities company announced the successful completion of its $270 million institutional placement. These funds were raised at $4.89 per new share, which represents an 8.1% discount to its last close price of $5.32. Challenger also announced that it has no plans to pay a final dividend in FY 2020.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Tuesday has been the Western Areas Ltd (ASX: WSA) share price with a 13% gain. This follows a very positive drilling update this morning. The worst performer is the Challenger share price with its 9% decline. Investors appear to be disappointed with its decision to raise capital and cancel its final dividend.

More reading

• Why Altium, Austal, Challenger, & Mesoblast shares are tumbling lower
• Renewed US-China trade war puts these ASX 200 stocks in the firing line
• Why AMP, FlexiGroup, Harvey Norman, & Qube shares are charging higher
• Should you buy ANZ, CBA, NAB, or Westpac? Here’s what this broker thinks
• Woolworths share price higher on major supply chain update and FY 2020 guidance

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia owns shares of Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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