The S&P 500 Index (SP: .INX) and Nasdaq Composite Index (NASDAQ: .IXIC) reached new all-time highs on Wall Street last night. It should be a cause for celebration. If only the record weren’t accompanied by a more sinister number cracking into uncharted territory, too.

Warren Buffett and I both know investing is for the long term, and history has shown that more record highs follow record highs (eventually). And yet, the greatest of all time (GOAT) investor still takes heed of a market consumed by greed.

As it turns out, Warren’s own indicator of an overvalued market also reached an all-time high overnight.

Warren Buffett’s valuation ratio

Roughly 23 years ago, Warren Buffett explained what he considered to be “the best single measure” of valuations, whether overvalued or undervalued. While the world’s tenth richest person has since walked back the importance of the measure, it remains a popular tool among investors.

The metric, aptly known as the ‘Buffett Indicator’, measures the total market capitalisation of US stocks divided by the country’s gross domestic product (GDP). Essentially, it’s a ratio of the valuation investors are willing to ascribe to public companies versus the actual size of the country’s economy.

As shown in the chart above, the Warren Buffett Indicator is at a historical high of 195%. Before this rally, the previous high was 194.8%, set in November 2021. The S&P 500 began falling a month later, resulting in a 25% crash over the following nine months.

Why is it at the highest point in its history?

There is a dichotomy between the economy and the stock market, especially in the United States.

On the one hand, the United States economy is softening as interest rates eat into spending. At the same time, there’s a seemingly insatiable demand for all things artificial intelligence (AI).

As a result, stock market indices are being pushed higher by a small handful of beneficiaries of the AI appetite — Nvidia Corp (NASDAQ: NVDA), Microsoft Corp (NASDAQ: MSFT), etc. These same companies constitute a large portion of the entire US stock market, as shown above.

The narrow concentration of growth could explain the record disconnect between the overall stock market and the United States economy.

What does it mean for investors?

As a strong critic of ‘timing the market,’ Warren Buffett doesn’t dump his portfolio when the overall market looks frothy. Rather, he usually moves incoming cash from his investments in Berkshire Hathaway Inc. (NYSE: BRK) into U.S. Treasury Bills until he discovers an opportunity.

An ‘overvalued’ market hasn’t stopped the Oracle from Omaha from finding stocks to buy. Filings show Buffett bought more shares in oil and gas giant Occidental Petroleum Corp (NYSE: OXY) last month. A company whose shares are only up 1.6% year-to-date.

It shows that the ‘market’ can be ‘expensive’, but a good investor can keep hunting. Instead of falling victim to FOMO (fear of missing out), Warren Buffett is zigging when others are zagging.

The post This Warren Buffett metric is at a never-before-seen high! What does it mean? appeared first on The Motley Fool Australia.

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• Have you heard of this ASX robotics stock? It’s up 75% in 3 days!
• 2 ASX All Ords shares (and one ETF) smashing new highs while the market sinks
• The AML3D share price has crashed 26% this week. Time to pounce on the ASX defence stock?
• Why Catalyst Metals, Imugene, Red 5, and Telstra shares are pushing higher today

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 positions in and has recommended Microsoft and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Occidental Petroleum and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The market is having a bit of a subdued session on Wednesday, but that isn’t stopping one ASX robotics stock from storming higher again.

At the time of writing, the FBR Ltd (ASX: FBR) share price is up 19% to 5.6 cents.

This means that its shares are now up 75% since the end of last week.

What is this ASX robotics stock?

FBR, which was previously known as Fastbrick Robotics, designs, develops, and builds dynamically stabilised robots to address global needs in a safer, more efficient and more sustainable way.

It notes that these robots are designed to work outdoors using the company’s core Dynamic Stabilisation Technology (DST).

The first application of DST for FBR is the Hadrian X robot. It is a bricklaying robot that “builds structural walls faster, safer, more accurately and with less wastage than traditional manual methods.”

The company is now attempting to follow in Chris Hemsworth’s steps by cracking America.

In May, FBR revealed that a Hadrian X robot had departed the port of Fremantle, Western Australia, on a ship bound for Florida. This is to conduct FBR’s first international demonstration program

What’s the latest?

On Monday, the ASX robotics stock revealed that its Hadrian X robot has now arrived on American shores.

Once unloaded from the ship and cleared of customs, the robot will be transported to a facility in Fort Myers, Florida.

After which, it will undertake Site Acceptance Testing at the facility. This consists of a test build outdoors with the same requirements as its previously completed Factory Acceptance Testing, plus the inclusion of some bond beam blocks and an inspection from an independent structural engineer to confirm that the constructed walls of the test build are consistent with the design and meet applicable building standards.

Completion of the Site Acceptance Testing will trigger a US$600,000 payment by CRH Ventures to FBR. It will also trigger the commencement of the Demonstration Program.

Demonstration Program

This Demonstration Program requires FBR to construct the external walls of between five and ten single-storey houses utilising Hadrian X.

If that is successful, it could be good news for the ASX robotics stock. The company has an agreement in place with CRH Ventures

It has granted CRH Ventures an exclusive option to trigger the commencement of a joint venture for the supply of Wall as a Service using Hadrian X construction robots in the United States. After which, the joint venture will issue a binding but conditional purchase order for 20 Hadrian X units at US$2 million each plus applicable sales tax. It then has a pathway in place to take the total to 300 units eventually.

But there’s a lot of work to be done until that happens. So, investors may want to be patient and wait for further news before considering an investment in this speculative stock.

The post Have you heard of this ASX robotics stock? It’s up 75% in 3 days! appeared first on The Motley Fool Australia.

More reading

• 2 ASX All Ords shares (and one ETF) smashing new highs while the market sinks
• The AML3D share price has crashed 26% this week. Time to pounce on the ASX defence stock?
• Why Catalyst Metals, Imugene, Red 5, and Telstra shares are pushing higher today
• Prediction: 2 US stocks that will be worth more than Nvidia 5 years from now
• Is it too late to buy Zip shares at their 2-year highs?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Scott Phillips.

It’s been a fairly horrible day for the All Ordinaries Index (ASX: XAO) and most ASX All Ords shares so far this Wednesday. At the time of writing, the All Ordinaries has lost a hefty 0.34% of its value, and is back down to around 8,050 points.

However, despite the broader market’s bad mood today, a few ASX All Ords shares are still breaking away to record gains.

In fact, three have just smashed new 52-week highs. Well, two All Ords shares and one exchange-traded fund (ETF). Let’s check them out.

2 ASX All Ords shares (and one ETF) clocking new highs this Wednesday

Steadfast Group Ltd (ASX: SDF)

First up, we have insurance stock Steadfast. Steadfast shares have gained a healthy 1.91% so far today and are up to $6.41 a share at the time of writing. Not only is that a new 52-week high for this insurance stock, but a new all-time record high. And there’s still plenty of time left today for the price to go even higher.

This push is just the latest uptick for Steadfast, which has been on a tear for a few weeks now. Back on 21 June, the company gave investors an update regarding its expectations for the 2024 financial year. Steadfast upgraded its guidance for the 23 months ended 30 June 2024.

It previously told ASX All Ords investors to expect an underlying net profit after tax of between $290 million and $300 million. But last month, it increased this expected range to between $298 million and $303 million.

Investors have been flocking to Steadfast shares ever since, with the company now up a healthy 16.7% over the past month.

Emeco Holdings Ltd (ASX: EHL)

Next up, we have mining equipment company Emeco. Emeco shares are currently flat at 79 cents apiece. However, earlier today, they rose to 80 cents, a new 52-week high for this ASX All Ords stock.

Again, there hasn’t been any fresh news out of Emeco this Wednesday. In fact, we haven’t heard from this company with any price-sensitive news for a while now. But Emeco has been rising steadily ever since its last earnings report back in February.

Back then, this ASX All Ords stock reported a 21% rise in operating earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to 31 December to $137 million. Operating net profits after tax also rose by 69% over the prior corresponding period to $51 million.

Emeco shares have risen 19.7% over the past six months, so today’s new 52-week high may be a byproduct of this increased optimism.

iShares Asia 50 ETF (ASX: IAA)

Finally, let’s talk about the Shares Asia 50 ETF. IAA units are currently enjoying a 0.23% lift to $103.82 each. That comes after this ASX All Ords ETF clocked a new 52-week high of $105 soon after the market opened this morning.

This ASX ETF holds a portfolio of underlying shares representing 50 of the largest companies listed on Asian markets, including China, Taiwan, South Korea, and Singapore. Its holdings include Taiwan Semiconductor Manufacturing Company, Samsung, and Tencent.

When an ETF rises in value, it’s normally due to the share prices of its underlying holdings appreciating. Indeed, we see that many of its top holdings have had a stellar month. Taiwan Semiconductor shares alone have gained more than 17% over the past month. Samsung has also done well, up 15.5% since this time last month.

So, it’s no surprise that this ASX All Ords ETF is also succeeding.

The post 2 ASX All Ords shares (and one ETF) smashing new highs while the market sinks appeared first on The Motley Fool Australia.

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• Guess which 2 ASX All Ordinaries shares were the best and worst performers of FY24?
• 9 ASX All Ords shares lifted to ‘strong buy’ consensus ratings in June
• Top ASX passive income shares to buy before June 30

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 positions in and has recommended Taiwan Semiconductor Manufacturing and Tencent. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The AML3D Ltd (ASX: AL3) share price has been on quite a rollercoaster over the past six trading days.

And that’s no hyperbole.

Here’s how the AML3D share price has moved as of last Wednesday:

• On 3 July shares closed up 37.8%
• On 4 July shares closed up 25.9%
• On 5 July shares closed up 26.5%
• On 8 July shares closed down 14.0%
• On 9 July shares closed down 21.6%

As for today, shares in the ASX defence stock are once more tearing higher, up 17.2% at 17 cents apiece.

Now that sees the stock up 234% over 12 months.

But it still leaves the AML3D share price down 26.1% since Monday’s open.

Time to pounce?

What’s been lifting the AML3D share price?

If you’re not familiar with the company, the ASX microcap stock is engaged in the design and construction of 3D parts using metal additive manufacturing technology, with a focus on the defence industry.

And the AML3D share price has been enjoying a strong run following a series of new contracts.

Back on 16 August, the company signed a contract valued at more than $2 million with BlueForge Alliance to develop and metal 3D print a replacement component used in United States Navy submarines.

And the new contract announcements have continued apace.

On 1 May, the company reported inking a $350,000 deal with the Australian government for a six-part nozzle assembly in an aerospace defence project.

On 20 May, AML3D announced another deal linked to the US Navy involving the lease of two more of its ARCEMY metal 3D printing systems with option to purchase. That deal has an initial value of $700,000. The AML3D share price closed up 17.9% on the day of the announcement.

Commenting on that deal at the time, AML3D CEO Sean Ebert said it “illustrates how important our advanced manufacturing technology is to the US Defence sector”.

He added:

AML3D ARCEMY systems can produce higher quality components, faster and with less waste than traditional manufacturing which is driving demand from the US Navy and the wider US Navy submarine industrial base supply chain.

Price query

Today the company responded to a 5 July price query from the ASX regarding the soaring AML3D share price and surge in trading volume last week.

The ASX had questions about AML3D’s announcement on 2 July when the company reported on a new $1.1 million sale of its ARCEMY system to US Navy supplies Laser Welding Solutions.

AML3D replied to the ASX query about the announcement, stating:

Not only was the ARCEMY System sale a material sale for the company, but the election to purchase the previously leased system was directly related to previous announcements on 20 September 2023 and 20 May 2024.

Is the AML3D share price good value now?

The past few days of selling were likely driven by some healthy profit-taking after the huge run higher in the AML3D share price.

Today, it appears that speculative bargain hunters are back in the game, driving shares higher once more.

With the share price still down 26% since Monday’s open, it’s quite possible investor enthusiasm could send it back to Monday’s levels, or higher, in the days ahead. Though that’s far from guaranteed.

Longer term, the global defence sector is expected to continue growing strongly amid ongoing and rising tensions around the world.

If AML3D can continue to secure a foothold in that multi-billion-dollar industry with additional and continuing defence contracts, I expect shareholders to be amply rewarded.

The post The AML3D share price has crashed 26% this week. Time to pounce on the ASX defence stock? appeared first on The Motley Fool Australia.

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• ‘Geopolitical risk is unlikely to subside’: Should you pile into ASX defence shares right now?
• AML3D share price surges another 38% today! What’s going on?
• Move over DroneShield: This ASX defence stock is up 67% in a month!

Motley Fool contributor Bernd Struben 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 Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.2% to 7,811.7 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are rising:

Catalyst Metals Ltd (ASX: CYL)

The Catalyst Metals share price is up 13% to $1.29. This morning, this gold miner released an production update. According to the release, Catalyst Metals achieved annual group production of 110,000 ounces for FY 2024. This group gold production includes the first 12 months of Plutonic production under Catalyst’s ownership following the consolidation of the Plutonic Gold Belt on 1 July 2023. The Plutonic operation produced 85,000 ounces for FY 2024, which is up from 60,000 ounces in FY 2023. This represents a 41% increase with only an $11 million increase in costs. Its CEO, James Champion de Crespigny, commented: “Now, with Plutonic stabilising, we are able to focus on developing Trident and Plutonic East which will see our production grow to over 150koz.”

Imugene Ltd (ASX: IMU)

The Imugene share price is up 6% to 5.4 cents. This has been driven by news that the clinical stage immune-oncology company has dosed its first patient in its trial for bile tract cancer patients. Imugene’s trial is an expansion of its MAST Phase 1 trial. It was undertaken after early responses were observed in gastrointestinal cancers, and particularly bile tract cancers. The trial is testing Imugene’s cancer-killing virus CF33 (Vaxinia). The company’s CEO, Leslie Chong, said: “Given the results we’ve seen to date we are eager to see the potential of VAXINIA in bile tract cancer.”

RED 5 Limited (ASX: RED)

The Red 5 share price is up 2% to 40.8 cents. Investors have been buying this gold miner’s shares this week after it entered into a restructured hedge facility and security package, repaid all outstanding loans, and restructured the hedging from the legacy Silver Lake Resources Limited (ASX: SLR) common terms deed. It also revealed that preliminary group sales for the fourth quarter were 110,818 ounces of gold, bringing its full year sales to 455,259 ounces of gold.

Telstra Group Ltd (ASX: TLS)

The Telstra Group share price is up 2.5% to $3.82. Investors have been buying the telco giant’s shares this week after it announced an increase to its mobile prices. This will see prices on most of its mobile plans increase by between $2 to $4 per month. Goldman Sachs was pleased with the news and believes it demonstrates that the mobile market remains rational. In addition, it boosted its earnings and dividend estimates to reflect the changes. This ultimately led to the broker retaining its buy rating and lifting its price target to $4.30.

The post Why Catalyst Metals, Imugene, Red 5, and Telstra shares are pushing higher today appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Nvidia has been on an impressive tear lately, but many investors are concerned about the longevity of Nvidia’s current position. It’s known to be a cyclical company, so a demand reduction in its GPUs (graphics processing units) is coming, although no one knows when.

With Nvidia trading on much of its future prospects, there isn’t much room for error. However, there are two companies that aren’t as high-flying as Nvidia and could be worth more than it five years from now.

The two companies? Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN), which are the fourth- and fifth-largest companies in the world, respectively.

Alphabet

When discussing which company is larger, I’m talking about market capitalization. Market cap is how much a company is worth and can be calculated by multiplying the shares outstanding by the stock price. Nvidia currently holds around a $3 trillion market cap, while Alphabet and Amazon are valued at around $2.3 trillion and $2.1 trillion, respectively. So, if Nvidia stays stagnant, these two would have to grow by 31% (Alphabet) and 45% (Amazon) to catch Nvidia.

Over a five-year span, those aren’t unrealistic outperformance rates, so the odds of either company surpassing Nvidia aren’t that low.

Alphabet has a strong case of being worth more than Nvidia solely on a valuation basis. I could talk about how Google Gemini is a fantastic generative AI model that is starting to pick up momentum after stumbling out of the gate or how Google Cloud is vital in artificial intelligence (AI) infrastructure. But the argument is far simpler than that.

Currently, Alphabet trades at 24.5 times forward earnings. While this is still more expensive than the broader market’s 22.3 times forward earnings (measured by the S&P 500 index), it’s still far cheaper than the three larger companies in front of it.

GOOGL PE Ratio (Forward) data by YCharts

With Microsoft and Apple trading at 34 and 33 times forward earnings, respectively, they garner a much higher premium than Alphabet.

While some may argue that this premium is warranted due to recent execution, I’d argue that Alphabet is just as deserving over the long term. If you gave Alphabet a 33 times forward earnings multiple, the company would be valued at $3.08 trillion — essentially the same size as Nvidia.

Alphabet doesn’t get nearly the respect that some other companies do in today’s market. As a result, I think it has a strong case to be worth more than Nvidia in the future, as it isn’t trading with lofty expectations built into the stock.

Amazon

Amazon’s case isn’t as straightforward as Alphabet’s. The stock trades at 44 times forward earnings, nearly identical to Nvidia’s 45 times forward earnings valuation.

However, I believe Amazon’s high valuation is a byproduct of its focus on efficiency. CEO Andy Jassy has been pushing for better operating efficiency since he was promoted to CEO. So far, Amazon excelled in this pursuit.

Segment	Revenue	YOY Revenue Growth	Operating Income	YOY Operating Income Growth
North American	$86.3 billion	12%	$5 billion	455%
International	$31.9 billion	10%	$903 million	N/A
AWS	$25 billion	17%	$9.4 billion	84%

Data source: Amazon. YOY = Year over year. Note: International was unprofitable last year.

With the impressive improvements in all divisions in a year, his plan is clearly working. However, Jassy isn’t done yet. Although these profit levels are the highest they’ve been since the peak of COVID, Jassy believes there are more gains to be had.

This combination of revenue growth (Amazon grew its revenue by 13% in the first quarter) with margin improvement causes earnings to rise rapidly, making the stock appear cheaper if the stock price doesn’t rise by the exact same amount.

Amazon is a solid business with serious staying power. Because of its track record of execution and solid growth, I think it will be worth more than Nvidia in five years. Nvidia’s business comes in waves, and although that’s great for peaks, it can hurt it when times aren’t so good.

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

The post Prediction: 2 US stocks that will be worth more than Nvidia 5 years from now appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in Alphabet and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Zip Co Ltd (ASX: ZIP) shares have seen a dramatic turnaround in the last 24 months. After bottoming to multi-year lows of 28.5 cents apiece in October last year, the stock has now rallied to trade at $1.78 at the time of writing – its highest mark in two years.

In fact, Zip shares have spiked by 330% over the past 12 months, making them one of ASX’s top performers in that time.

With this surge, investors are questioning whether it’s too late to join the Zip bandwagon. Is it? Let’s see what the experts think.

What’s driving Zip shares higher?

Zip shares notched new multi-year highs of $1.82 apiece at Tuesday’s close. This is their highest since February 2022, as seen in the chart below.

This surge follows a significant turnaround in the company’s strategy and performance. Over the past year, Zip has pivoted from aggressive growth to a focus on profitability, which has been well-received by the market.

The company’s results for Q3 FY24 showed a 14.6% year on year increase in total transaction volumes (TTV) to $2.4 billion. More than 43% growth in transaction volumes came from the US alone.

Looking ahead, I see the company’s performance in the US market – where it has shown significant growth – as a key area to watch.

Additionally, the exit of Apple from the buy now, pay later (BNPL) market in the USA saw another buying thrust in Zip shares.

Is it too late to buy Zip?

Experts are divided on whether it’s too late to buy Zip shares at their current highs.

UBS and Ord Minnett both rate the BNPL company a buy, setting price targets of $1.55 apiece. Notably, this is below the current share price on Wednesday.

But, both brokers acknowledge that investors should consider the risks associated with BNPL stocks, especially in a higher interest rate environment.

The consensus from CommSec also suggests a positive outlook, with four out of eight firms rating Zip as a buy.

The outlook on buying Zip shares also depends on several personal factors, including (but not limited to) long-term investment goals, personal risk tolerances, and current financial position.

The decision to buy a stock or not shouldn’t be solely based on price movement, either. Business fundamentals are what matter over the long run.

So, for those investors with a long-term view, an appraisal of the company’s long-term prospects – rather than month-to-month movements in its share price – is more appropriate.

In that vein, depending on your answers to the above points, it may or may not be too late to buy ZIp shares.

Foolish takeaway

Zip shares have delivered stellar gains in the past year, with a 330% increase. While the company’s strategic shift towards profitability and the exit of a major competitor has boosted its prospects, remember to conduct your own thorough due diligence.

The post Is it too late to buy Zip shares at their 2-year highs? appeared first on The Motley Fool Australia.

More reading

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• Up 327% in a year, the Zip share price just smashed new multi-year highs!
• Zip shares FY24 recap: Up 256%, what’s next for FY25?
• 5 ASX All Ords shares that rose 250% to 700% in FY24
• Zip shares surge 10%, bringing gains to 55% in a month

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Zip Co. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As the ASX All Ordinaries Index (ASX: XAO) pushes less than 1% into the green this past week, one All Ords stock continues its impressive run.

Shares in WA1 Resources Ltd (ASX: WA1) shares have skyrocketed 250% in the past 12 months and are up 52% this year.

They were valued at $18.84 per share before the open on Wednesday, right before the company requested a trading halt of its securities.

The reason? A market-sensitive announcement regarding an update at its Luni carbonatite asset, located in Western Australia. Let me explain.

Why is this ASX All Ords stock on ice?

WA1 Resources shares are frozen today after a company request before the market opened.

The ASX All Ords stock announced it has completed the initial mineral resources estimate (MRE) for its Luni asset, located within the company’s West Arunta Project in WA.

The Luni deposit has been identified as “the most significant niobium discovery in over 70 years”, according to WA1.

Niobium is a metal highly resistant to corrosion. Consequently, it is favoured in the production of various alloys, such as stainless steel.

The initial MRE for Luni showed an intersection of 200 million tonnes (Mt) at 1.0% Niobium (Nb2O5). Assays contained a high-grade subset of 53 Mt at 2.1% Nb2O5 as well.

This estimate is based on drilling completed up to the end of 2023. It will guide further resource definition drilling within the same vicinity for the ASX All Ord stock.

WA1 managing director Paul Savich emphasised the strategic importance of Luni, saying:

This mineral resource estimate confirms Luni as the most significant niobium discovery globally in over 70 years. This is a remarkable achievement within two years from discovery in an entirely greenfield belt in the West Arunta.

The shallow, high-grade nature of the deposit, coupled with the recently announced initial metallurgy results, indicates the deposit may be amenable to conventional processing techniques and reinforces Luni as a highly strategic critical mineral asset.

Brokers are optimistic

Aside from today’s update, metallurgical test work completed at Luni saw investors start a feeding frenzy for the ASX All Ords stock last month.

The program produced high-grade niobium concentrates that are comparable to industry recovery rates.

As a result, analysts at Bell Potter see a significant upside for this All Ords stock, saying WA1 passed “a significant de-risking hurdle” with the above results.

The broker also believes the Luni project could generate $514 million in annual pre-tax earnings, valuing the ASX All Ords stock at $5.6 billion.

It upgraded its price target on the company to $28.00, suggesting a potential upside of 48% at the time of writing.

The post Up 52% this year, why is this ASX All Ords stock halted today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a poor session on Wednesday. In afternoon trade, the benchmark index is down 0.4% to 7,796.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is down almost 2% to $2.85. This follows news that the agricultural chemicals company has ended negotiations with PT Pupuk Kalimantan Timur for the sale of its fertilisers business. The deal for the Incitec Pivot Fertilisers business was estimated to be valued at over $1 billion. Management advised: “Throughout the sale negotiations with PKT, we were focused on completing a sale transaction in a timely manner to allow us to commence our on-market buyback of up to $900 million. We have determined we are unlikely to achieve this outcome with PKT in an acceptable timeframe, and as a result we made the decision to cease negotiations with them.”

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down almost 3% to $4.02. This is despite there being no news out of the online retailer. However, it is worth noting that Kogan’s shares have been under significant pressure in recent months. So much so, its shares have lost half their value since the middle of March and hit a 52-week low this morning. Investors may be concerned by rising competition from the likes of Amazon, Temu, and Shein.

Insignia Financial Ltd (ASX: IFL)

The Insignia Financial share price is down over 6% to $2.34. This financial services company’s shares rose almost 14% on Tuesday in response to speculation that it could be a takeover target of a private equity firm. The media report claimed that the company, which was formerly known as IOOF, had called in Citi to support it with takeover approaches. However, after the market close yesterday, the company responded to a speeding ticket from the ASX by advising that “Citi has not been engaged to field any offers and the company is not aware of any offer.”

Resimac Group Ltd (ASX: RMC)

The Resimac share price is down a further 2.5% to 79.5 cents. This non-bank lender’s shares have been under pressure this week after it announced the sudden exit of its CEO without reason. According to the release, Scott McWilliam has resigned from his employment with Resimac after 21 years of service. This included six years as its CEO and three years as its joint CEO following the merger with Homeloans Limited. It also advised that Mr McWilliam will take a period of leave before his employment contract ends on 1 September 2024.

The post Why Incitec Pivot, Kogan, Insignia, and Resimac shares are dropping today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Kogan.com. The Motley Fool Australia has recommended Amazon and Kogan.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.