Tag: Fool

The All Ordinaries Index (ASX: XAO) is up 10.31% since this time last year, with one ASX All Ords stock doing plenty of the heavy lifting.

12 months ago, you could have picked up shares in this company for $4.62 apiece. At market close yesterday, those same shares were trading for $6.31, up a whopping 36.58% in a year.

But let’s not forget those dividends.

Over the course of the year the ASX All Ords stock pleased passive income investors by dolling out 69.5 cents a share in fully franked dividends.

Adding that to yesterday’s closing price, the accumulated value of the company’s shares is up 51.6% in 12 months, with some potential tax benefits from those franking credits.

Any guesses?

If you said Yancoal Australia Ltd (ASX: YAL), go to the head of the virtual class.

Here’s what’s been going right for investors in the ASX All Ords coal stock.

How has this ASX All Ords stock been smashing the benchmark?

Yancoal shares first popped onto most investors’ radars in 2022.

That came as thermal coal prices surged to all-time highs following Russia’s invasion of Ukraine. And it saw the ASX All Ords stock surge 133.1% in 2022.

Since then, coal prices have returned to earth. But that hasn’t stopped Yancoal from booking impressive profits and building up a serious cash pile.

Despite focusing on its mine recovery plans in 2023, Yancoal increased its output each quarter. And Q4 2023 marked the highest rate of production for the miner in three years.

Over the full year the ASX All Ords stock reported $7.8 billion in revenue and $3.5 billion of operating earnings before interest, taxes, depreciation and amortisation (EBITDA).

That saw the company book an enviable $1.8 billion after-tax profit, which helps explain the market-beating 11.01% dividend yield.

As for 2024, the first quarter of the year saw Yancoal boost its cash holdings by $260 million. That saw the ASX coal miner holding $1.66 billion in cash as at 31 March.

Since that time Yancoal will have dipped into its cash holdings to pay out the $429 million final dividend. Eligible shareholders will have seen their portion of that passive income hit their bank accounts on 30 April.

And the second half of the year is looking promising for the ASX All Ords stock.

Commenting on that outlook back in April, Yancoal CEO David Moult said, “Yancoal continues to generate robust cash inflows. The AU$180 per tonne price realised [in Q1] was roughly double the cash operating cost we are targeting this year.”

The post Guess which ASX All Ords stock has rocketed 37% in a year AND pays an 11% dividend yield! appeared first on The Motley Fool Australia.

More reading

• 2 high-yield ASX shares I’d buy now for dividends
• How the Yancoal share price soared 36% in a year and what to expect next
• If I invest $5,000 in Yancoal shares today, how much income will I receive in 2025?
• How a $9k investment in this ASX All Ords stock ballooned to $35,234 in just 3 years!
• Here’s how the ASX 200 market sectors stacked up last week

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.

Are you looking for some promising ASX shares that have taken a hit recently? The S&P/ASX 200 Index (ASX: XJO) has whipsawed sideways in the last three months, opening up the window for some potential bargains.

Investors might find it useful to know that fund managers are eyeing three beaten-up stocks: Telstra Corporation Ltd (ASX: TLS), Worley Ltd (ASX: WOR), and Cettire Ltd (ASX: CTT).

Let’s dive into why these shares are catching the attention of savvy investors.

Telstra might be an undervalued ASX share

Telstra shares have dropped 18% in the past year, swapping hands at $3.55 apiece at the close of trading on Thursday. The telco giant recently announced plans to cut 2800 jobs, causing shares to dip further in late May.

Some fund managers believe this presents a buying opportunity. Allan Gray chief investment officer Simon Mawhinney noted the fund liked Telstra at its current valuations.

“I think this is one of the first times in 10 or 15 years that you’ve been able to buy Telstra at a not unreasonable price”, he told The Australian Financial Review. The reporting notes Allan Gray has owned the ASX share since Q1 this year.

Goldman Sachs also has a buy rating on Telstra, with a price target of $4.25 per share, according to my colleague James. The broker forecasts dividends of 18 cents per share in FY 2024 and 18.5 cents per share in FY 2025.

Is Worley a diamond in the rough?

Worley shares have seen a bumpy ride in 2024. They are currently trading at $14.53 apiece, down 17% since January 1. In April, the company’s largest shareholder, Sidara, offloaded its 19% stake in the firm, causing shares to drop sharply.

Despite this, fund managers see plenty of upside in this engineering giant. Hamish Tadgell from SG Hiscock believes that Worley is well-positioned to benefit from the projected increase in global energy investment, given its “global scale and competitive advantages”.

“We continue to believe the business remains very well leveraged to benefit from the projected four-fold increase in global energy investment and decarbonisation projects…,” he said. As quoted by the AFR:

In a lower-growth environment, and where increased spending on transitioning to lower-emissions energy technologies seems an undeniable trend in an uncertain world, we believe Worley has a strong earnings outlook…”

As my colleague Tristan reported recently, Sequoia Wealth Management also rates Worley a buy. It says the company plans to grow profit margins through automation and AI as a potential tailwind.

Why fundies are betting on this ASX share

Online luxury fashion retailer Cettire has slipped nearly 22% into the red this year to date and is currently trading at $2.29 per share. On 20 March this year, it closed at $4.33. Investors have punished this stock in 2024.

Despite recent concerns surrounding its selling practices last month, fund managers like Phil King’s Regal Partners have been increasing their stakes in the company.

Regal bought an additional 4 million shares since March. Meanwhile, fellow fundie Cat Rock Capital also purchased nearly 5 million shares throughout April-May, the AFR reported.

Foolish takeaway

All three ASX shares — Telstra, Worley, and Cettire — have faced challenges but are catching the eyes of fund managers because of their potential upsides.

Whether it’s Telstra’s dividend growth, Worley’s positioning in the energy transition, or Cettire’s growth prospects, analysts see some compelling reasons to consider these beaten-up stocks for your portfolio.

The post 3 beaten-up ASX shares fundies love right now appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares set for dividend increases this year
• Are Telstra shares now a brilliant bargain?
• ‘Undervalued’: 3 ASX 300 shares to buy following significant share price falls
• Buy Rio Tinto and these ASX dividend stocks for 5%+ yields
• Here is the earnings forecast through to 2026 for Telstra shares

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

Legendary American investor Peter Lynch, who managed Fidelity Magellan Fund from 1977 to 1990, boasted an average annual return of 29%.

He wrote two bestsellers — One Up On Wall Street and Beating the Street — in which he advocated a pragmatic approach to investing, focusing on understanding one’s own assets.

A lesser-known fact about him is that he has a great sense of humour. In his speech in 1997, Peter Lynch wittily shared what he thought were the investment mistakes people should avoid.

These points are still valuable to any investor after nearly two decades. I have summarised three mistakes highlighted by Lynch below with some examples relevant to ASX investors.

This stock has fallen (risen) so much and can’t go lower (higher)

Known as ‘anchoring bias’ in psychology, investors tend to rely heavily on the first piece of information, such as the purchase price of a stock, when making decisions. However, this can be a costly mistake.

The historical share price movement is not a guide for its future direction. Over the long term, the share price typically follows a company’s business performance, regardless of its past share price trajectory.

The good news is that the opposite is true, too. When the stock price has risen so much, it doesn’t necessarily mean it’s time to sell as long as the company’s fundamentals are going strong. Pro Medicus Limited (ASX: PME) is a prime example of this, as my colleague James highlighted in this article.

Don’t worry about the stocks that you missed

Speaking of Pro Medicus, are you disappointed that you haven’t bought the shares yet? For that matter, have you missed the artificial intelligence (AI) plays, including Nvidia Corp (NASDAQ: NVDA), which just became a US$3 trillion company?

Do not worry. Peter Lynch suggests there’s always another good opportunity. Keep calm and carry on with your stock research. You only need a handful of big winners in your lifetime to live comfortably. You don’t need to own every single winner in the stock market.

Take investing legend Warren Buffett as an example. He, too, has made some investment mistakes in his career. For instance, his purchase of Berkshire Hathaway Inc Class B (NYSE: BRK.B), a then-failing textile company, was initially a mistake until he transformed it into a successful conglomerate.

However, his remarkable success in investing in Coca-Cola Co (NYSE: KO), Moody’s Corp (NYSE: MCO), and Apple Inc (NASDAQ: AAPL) more than compensated for any missteps, earning him immense fame and wealth.

Don’t buy the second-best company in a sector

Like any purchase in life, Lynch recommends buying the very best company in one sector. There’s a reason why the market leader is what it is, and it usually takes more resources and energy for the market followers to catch up with the winner.

While most market leaders are naturally large-cap companies, this doesn’t necessarily refer to the size of the company. Market leaders could be mid-cap companies excelling in their niches on a global scale.

For example, DroneShield Ltd (ASX: DRO) has built its unique market position in the counter-drone industry. As my colleague Zach highlighted, the company is now eyeing the potential for a five-year pathway to $300 to $500 million a year in its revenues.

This is a 10-fold increase from its 2023 revenue of $55 million.

These timeless investing insights and wisdom hold true today and still have the power to teach us to become better investors.

The post Peter Lynch says to avoid these 3 investing mistakes appeared first on The Motley Fool Australia.

More reading

• Why DroneShield shares are making headlines again on Thursday
• 2 excellent ASX shares to buy and hold for a decade
• Here are the top 10 ASX 200 shares today
• Up 260% in 2024, this ASX All Ords stock just hit another all-time high
• Can Berkshire Hathaway stock keep outpacing the S&P 500?

Motley Fool contributor Kate Lee has positions in Moody’s and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, DroneShield, Moody’s, Nvidia, and Pro Medicus. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, Nvidia, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are searching for retirement portfolio options this month, then you may want to look at the quality ASX shares listed below.

Here’s why these shares could be top options for retirees:

CSL Limited (ASX: CSL)

When you’re building a retirement portfolio, it is always a good idea to focus on quality. And there are few higher quality businesses out there than CSL.

It is one of the world’s leading biotechnology companies. Its three businesses, CSL Behring, CSL Seqirus and CSL Vifor, provide lifesaving products to patients in more than 100 countries.

In addition, the company reinvests in the region of 12% of its sales back into research and development (R&D) activities each year. This means that it has an R&D pipeline filled to the brim with some potentially lucrative and life-saving therapies and vaccines.

Macquarie currently has an outperform rating and $330.00 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX share that could be a top option for a retirement portfolio is Transurban.

It is the toll road company behind the Linkt, Expresslane, A25 Smart Link platforms, and roads including CityLink, Cross City Tunnel, AirportlinkM7, and 95 Express Lanes.

Its network provides invaluable time savings to commuters. And with population growth putting more cars on the roads, its network is arguably going to become even more important in the future. Combined with inflation-linked price increases, this bodes well for its long term growth.

The team at Citi sees a lot of value in its shares at current levels and is forecasting above-average dividend yields (4.9%+) in the coming years.

It has a buy rating and $15.50 price target on them.

Woolworths Limited (ASX: WOW)

Another ASX share that could be a buy for a retirement portfolio in June is Woolworths. It is the retail giant behind the Woolworths supermarket chain, Countdown supermarkets in New Zealand, and Big W.

It could be a good option due to its high quality business, market leadership, and defensive qualities. It also offers positive exposure to inflation, which could make it a top pick in the current environment.

Analysts at Goldman Sachs are very positive about Woolworths. So much so, the broker has it on its conviction list. It likes the supermarket giant due to its digital and omni-channel advantage, which it expects to drive further market share and margin gains.

The broker has a buy rating and $39.40 price target on its shares.

The post 3 of the highest quality ASX shares to buy for a retirement portfolio appeared first on The Motley Fool Australia.

More reading

• Are Woolworths shares a no-brainer buy?
• Are these 2 ASX healthcare shares the best that money can buy?
• Could the CSL share price end 2024 above $300?
• Buy Rio Tinto and these ASX dividend stocks for 5%+ yields
• Would I be crazy to buy Coles shares at $16?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goldman Sachs Group, Macquarie Group, and Transurban Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares were back in the spotlight on Thursday, nudging a fresh all-time high of $1.425 per share this morning following a company announcement.

Shares in the counter-drone technology company drifted lower through the day, however, before closing Thursday’s session 4.07% in the red at $1.295.

What’s driving DroneShield shares?

Today’s price action follows the company’s announcement it was set to raise cash via a share placement of 37.9 million shares to investors at 80 cents apiece. That implies a total capital raise of $30.32 million before costs.

Notably, 80 cents was the price the company’s shares traded at around May this year before its atmospheric rise to a series of all-time highs this week. It has nudged to these highs in the last two sessions.

The placement — approved at the company’s annual general meeting on 3 June — has been tremendously successful for investors so far.

Based on today’s closing price, they look to have booked profits of around $18.5 million on the approximately 38 million shares.

Why investors are bullish on DroneShield

DroneShield has been on a remarkable upward trajectory, with its shares soaring 440% over the past year.

The meteoric rise can largely be attributed to increasing demand for the company’s drone detection and disablement hardware.

DroneShield CEO Oleg Vornik said the counter-drone market was currently underserved. This was coupled with increasing public and private sector demand.

Vornik recently highlighted a scenario showing the company’s potential to grow revenues in the coming five years from $55 million last year to $300 million–$500 million per annum.

DroneShield’s latest quarterly results are a testament to this growth. The company reported $16.4 million in revenue for Q1 CY 2024, a 900% year-over-year increase.

Such impressive growth metrics have prompted analysts to upgrade the stock. For instance, Bell Potter analysts recently gave DroneShield a buy rating. The broker forecasts $97 million in sales and $24.4 million in earnings this year.

Share price summary

DroneShield shares have been on a tear this year and continue to gather support. With news the company is raising cash to fund its growth, the next task is on management, in my opinion.

The stock is up 250% this year to date, having climbed more than 55% in the past month of trade. The S&P/ASX 200 Index (ASX: XJO) has climbed 2.5% in this time.

The post Why DroneShield shares are making headlines again on Thursday appeared first on The Motley Fool Australia.

More reading

• Up 260% in 2024, this ASX All Ords stock just hit another all-time high
• Why are ASX investors so excited by the DroneShield share price?
• Why Droneshield, TechnologyOne, Telix, and Webjet shares are rising today
• Up 246% in a year, here’s why the Droneshield share price is racing higher again today

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 DroneShield. 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Guess what new trend is taking off amid the soaring gold price
• Why Genesis Minerals, Lovisa, Northern Star, and SRG Global shares are rising today
• Why I’d back up the truck on Soul Patts shares right now
• Bell Potter names more of the best ASX 200 stocks to buy in June
• How much passive income could I earn by investing $100 a month in ASX shares?

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 Nanosonics and WiseTech Global. The Motley Fool Australia has positions in and has recommended Nanosonics and WiseTech Global. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Buying high-yield ASX dividend shares is always a risky business. Get the call right, and you can potentially lock in a lucrative stream of passive dividend income for years into the future. Not to mention the potential of valuable franking credits.

But get the call wrong, and you could be caught in the dreaded dividend trap and see your investment lose value whilst not receiving nearly as much income as you had banked on.

Whenever an ASX 200 share trades on a high dividend yield it should automatically ring alarm bells. After all, the market doesn’t usually price ASX dividend shares with yields at 8% or higher for long, unless it is expecting that yield to be unsustainable.

So today, let’s check out three of the highest-yielding shares on the S&P/ASX 200 Index (ASX: XJO), and discuss whether they might be worth buying, or else avoided at all costs.

A caveat: we’ll just be using ordinary dividends in our calculations today, as including special dividends gives off a distorted projection of what kind of income one can expect to receive going forward.

The three highest-yielding dividend shares on the ASX today

Fortescue Ltd (ASX: FMG)

Fortescue is one of the more well-known dividend shares on the ASX, thanks to the veritable shower of cash it has rained onto its investors in recent years. Today, this ASX 200 iron ore miner is trading on a dividend yield of 8.58%, which typically comes with full franking credits attached too.

This dividend yield hails from Fortescue’s last two dividend payments, which were worth $1 and $1.08 per share respectively.

Fortescue’s ability to fund dividend payments rests almost entirely on the going price for iron ore in any given six-month period. As such, this is a difficult stock to anticipate when it comes to future dividends.

I wouldn’t bank on an 8%-plus yield forever if you buy Fortescue shares today. But I think Fortescue will continue to be one of the highest-yielding stocks on the ASX going forward, barring a major collapse in global iron ore markets.

Fletcher Building Ltd (ASX: FBU)

Next up we have ASX 200 share and construction materials company Fletcher Building. Fletcher stock is today trading on a huge trailing dividend yield of 11.31%.

However, we already know this is an unsustainable yield. This yield comes from the 37.6 cents per share in unfranked dividends that the company forked out over 2023. But in the company’s half-year earnings report from February this year, Fletcher revealed a net loss after tax of NZ$120 million. This resulted in Fletcher suspending its dividend entirely.

The company’s high yield that we see today is more of a consequence of the near-40% drop its shares have endured over 2024 so far. With no future income on the horizon, this looks like a classic dividend trap to me.

The ASX 200’s highest-yielding stock: Platinum Asset Management Ltd (ASX: PTM)

Finally, we get to the highest-yielding ASX 200 share on the market today – fund manager Platinum. Platinum shares are currently trading on a monstrous dividend yield of 13.04% right now. This comes from the total of 13 cents per share that the company has doled out over the past 12 months.

Again, this looks like it could be a dividend trap. Platinum’s dividends, alongside its funds management business, have been on the slide for years. Back in 2018, Platinum funded an annual total of 32 cents per share in fully franked dividends. But by the 2023 calendar year, this had more than halved to 14 cents.

Fund managers usually make their profits (and thus fund their dividends) from their underlying base of funds under management (FUM). Unfortunately for Platinum, its FUM has been on a downward trajectory for years now.

Just last month, the company revealed that its total FUM decreased 11% from $15.46 billion at the end of March to $13.75 billion by the end of April.

Unfortunately, we have to conclude from this data that Platinum shares are another dividend trap today.

The post Should you buy the 3 highest-yielding dividend shares in the ASX 200? appeared first on The Motley Fool Australia.

More reading

• Down 6% in a week. Are Fortescue shares carrying an iron anchor?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• The worst three performing ASX 200 shares in May unmasked
• Why APM, Fletcher Building, Navigator Global, and Strike Energy shares are storming higher

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

The gold price has been shining bright lately.

Really bright.

The gold price has been trending higher since late October 2022.

And it really began to lift off in February this year.

On 15 February, bullion was trading for US$1,992 per ounce. After hitting a series of new all-time highs in May, the yellow metal has retraced a touch and is currently trading for US$2,370 per ounce.

As you’d expect, that 19% increase has offered heady tailwinds to ASX gold stocks like Northern Star Resources Ltd (ASX: NST), Regis Resources Ltd (ASX: RRL) and Newmont Corp (ASX: NEM), to name a few.

To give you some idea, since market close on 15 February, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has rocketed 23.0%. That compares to a gain of 3.8% posted by the All Ordinaries Index (ASX: XAO) over the same time.

Atop from buying gold stocks, a lot of investors are also looking to own the physical metal.

And with the gold price soaring, a new trend is taking off.

Rocketing gold price spurs new buying trend

As Bloomberg reports, South Korean convenience store GS Retail sells all the usual items you’d expect.

And one more.

Next to the cash register and checkout snacks, you’ll also find a gold vending machine. The machine sells gold bars ranging in size from 37.5 grams to less than 1 gram.

Now, this trend first kicked off in 2022 with five GS Retail stores sporting gold vending machines.

But with the gold price rocketing, the company now has 30 gold vending machines in South Korea.

According to a GS spokesperson (quoted by Bloomberg):

Currently, we are seeing about 30 million won [AU$33,000] of sales per month. The gold vending machine draws customers’ attention due to increasing demand for safe haven assets and the spreading trend of micro-investing.

And the competition has taken note.

BGF Retail Co, which operates CU convenience stores in the country, started selling 1 gram gold cards on 1 April and sold out within two days.

“Sales accelerated as CU’s fixed-price gold products became cheaper than the market price,” a CU spokesperson said.

Commenting on the soaring gold price and rising consumer demand for physical bullion,  Seokhyun Paik, an economist at Shinhan Bank, said:

Retail investors who put their money into assets such as US Treasury bonds and Japanese yen from last year didn’t get a return they wanted. Then they turned their attention to gold.

The post Guess what new trend is taking off amid the soaring gold price appeared first on The Motley Fool Australia.

More reading

• Why Genesis Minerals, Lovisa, Northern Star, and SRG Global shares are rising today
• Bell Potter names more of the best ASX 200 stocks to buy in June
• 5 things to watch on the ASX 200 on Thursday
• Is buying ASX gold shares right now a good idea?
• 5 things to watch on the ASX 200 on Wednesday

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.

It’s looking like this Thursday will be another positive session for ASX shares (touch wood). At the time of writing, the All Ordinaries Index (ASX: XAO) has gained a healthy 0.65% and is back over 8,070 points. But let’s talk about what’s going on with the Core Lithium Ltd (ASX: CXO) share price.

Core Lithium shares are having a stinker. This ASX lithium stock closed at 12.5 cents yesterday afternoon, but today is trading at 11.1 cents at the time of writing, down a horrid 12% so far this session.  

What’s worse, Core Lithium shares descended as low as a flat 11 cents each earlier this morning, which marks a new 52-week low for the lithium stock. This new 52-week low is just the latest blow for Core’s long-suffering shareholders though. Get ready for some sobering numbers.

Over just the past five trading days, the Core Lithium share price has given up more than 17% of its value. Year to date, we’ve seen 58.5% wiped off the value of this company. Investors are also nursing a loss of 89.6% over the past 12 months.

The Core Lithium share price is down a staggering 94% or so from the company’s last all-time highs of over $1.87 a share that we saw back in late 2022. Check all of that out for yourself below:

Just how low can the Core Lithium share price go?

Core Lithium’s more recent woes can be put down to a series of unfortunate events. Firstly, lithium prices have decisively come off the boil over the past 12 months or so. This has put pressure on the prices of almost all ASX lithium shares.

But Core Lithium has been dealing with some specific issues as well, which seem to have dented investor confidence.

For one, its flagship Finniss Project suspended lithium production earlier this year as a result of crashing lithium prices.

The company also posted a net loss of $167.6 million for the six months ending 31 December, which didn’t exactly help boost sentiment. A more recent quarterly update did nothing to assuage these concerns either.

Back in March, Core also revealed that its CEO Gareth Manderson would abruptly depart. Last month, Core did announce that Paul Brown would take Manderson’s place, but this game of musical chairs at the top of the company also seems to have contributed to the investor apathy we see today.

So where are Core shares destined to head from here? Well, it might be prudent to keep legendary investor Benjamin Graham’s wise words in mind here. Graham once said, “In the short run, the market is a voting machine but in the long run, it is a weighing machine”.

Well, investors have been voting the Core Lithium share price down significantly in recent months. But the company doesn’t have a lot of good news that might tip the balance of the market’s weighing machine.

As such, it’s hard to see what might happen next. But until there’s some good news out of the company, we might not see much improvement in Core Lithium shares from here.

ASX expert says sell

That’s certainly the view of one ASX broker right now. As we covered last month, ASX broker Goldman Sachs doesn’t see Core restarting its Finniss mine anytime soon. Goldman gave the Core Lithium share price a sell rating alongside a 12-month share price target of 11 cents per share.

Probably not the news that Core investors want to hear right now, but let’s see if this company can prove its detractors wrong.

At the current Core Lithium share price, this ASX lithium stock has a market capitalisation of $267.11 million.

The post Core Lithium share price dives another 12%. How low can it go? appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, IDP Education, Seek, and Skycity shares are sinking today
• Why Core Lithium, Fortescue, Peter Warren, and Talga shares are falling today
• 3 key reasons to sell Core Lithium shares
• Here is the latest lithium price forecast through to 2027
• These are the 10 most shorted ASX shares

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 Goldman Sachs Group. 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.

Life360 Inc (ASX: 360) has requested a trading halt today pending an announcement regarding its proposed US initial public offering (IPO) of new shares of common stock on Nasdaq.

Investors have been buying up the Life360 shares in recent months, doubling the share price since the beginning of the year. At the time of writing, the Life360 share price is trading at $14.69.

Rapid growth

Life360 is a leading technology platform connecting millions of people worldwide. The Life360 mobile application offers features including communication, driving safety, digital safety, and location sharing.

The company has experienced rapid growth in recent years, particularly in the United States. Life360’s subscription revenue rose from US$86.6 million in 2021 to US$220.8 million in 2023. Management believes its core subscription revenue could continue growing by at least 20% in 2024.

While the company is still incurring a net loss, it has reduced from $33.6 million in 2021 to $28.2 million in 2023.

Listing on Nasdaq

Earlier this week, Life360 announced the launch of its US IPO, offering 5,750,000 shares of common stock. The company plans to use the proceeds from the offering to enhance its financial flexibility, create a public market for its stock in the US, and for general corporate purposes.

Once completed, the company expects to trade on Wall Street under the ticker code Life360 Inc (NASDAQ: LIF). The company’s Chess Depositary Interests (CDIs), representing shares of common stock, will remain listed on the Australian Securities Exchange (ASX).

What does this mean for ASX investors?

As my colleague James highlighted, analysts at Bell Potter believe this could be positive news for Life360 shares and its current shareholders. The broker previously noted:

Key potential catalysts for the stock include another strong quarter of paying circle growth in Q2 (April was another good month), a potential upgrade to the 2024 guidance sometime in H2, and a U.S. listing at some stage in the next 12 months.

We have increased the multiple we apply in the EV/Revenue valuation from 5.5x to 6.5x given the proposed US listing and potential re-rating of the stock given the much higher multiples of comps like Reddit (NYSE: RDDT).

Bell Potter has a buy rating and a $17.75 price target on Life360 shares.

The post Life 360 shares halted ahead of Nasdaq IPO appeared first on The Motley Fool Australia.

More reading

• 3 high-flying ASX shares that could keep on climbing
• Here are the top 10 ASX 200 shares today
• Why Clarity Pharmaceuticals, Life360, Ramsay Health Care, and Spartan Resources shares are rising today
• Life360 shares jump 7% on Nasdaq IPO launch
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Kate Lee 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 Life360. 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.