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The Commonwealth Bank of Australia (ASX: CBA) share price is managing to hold onto some gains today, up 0.26%.

Meanwhile, the rest of the big four S&P/ASX 200 Index (ASX: XJO) have dipped into the red in early afternoon trading.

At the current share price of $100.56, CBA trades on a price-to-earnings (P/E) ratio of 18.2 times.

While that’s not particularly excessive amongst high-growth shares (in fact, it would be considered low for most), it is the highest amongst the ASX 200 bank shares.

Here’s how the P/E ratios for CommBank’s top competitors stack up:

• Australia and New Zealand Banking Group Ltd (ASX: ANZ) trades at 10.7 times earnings
• National Australia Bank Ltd (ASX: NAB) trades at 15.4 times earnings
• Westpac Banking Corp (ASX: WBC) trades at 14.6 times earnings

So, is the CBA share price overvalued compared to its peers?

Property slowdown alert

One of the biggest factors analysts are poring over in valuing bank shares is the outlook for the Aussie housing market.

Interest rates, as we’re sure you’re aware, have gone from declining for a period of more than 10 years to a series of rapid hikes this year. And more rate rises are almost certainly on the near-term horizon.

While rising rates should serve to cool soaring inflation figures and help the banks’ net interest margins (NIMs), higher borrowing costs will also see dwelling prices fall. Just how much of a fall depends on who you ask.

That’s going to depress the demand for new mortgages in the short to mid-term. And it will put numerous borrowers under stress when the ultra-low fixed-rate mortgages they locked in at the housing peak leap 2% or more higher.

This is where the CBA share price could face stiffer headwinds than the other ASX 200 banks.

As Russel Chesler, head of investments at VanEck points out, CBA is Australia’s top home lender.

And Chesler sounds a note of caution on the outlook for the CBA share price (courtesy of The Australian):

CBA continues to trade at a premium to other big banks and is arguably overvalued. As the nation’s biggest home lender, it is most exposed to the property slowdown. We do not believe that the trading premium is sustainable in the long term and, at some point, CBA will be rerated.

CBA share price snapshot

CBA shares have gained 26.8% over the past five years.

Notably, the CBA share price is the only one amongst the ASX 200 bank shares that’s posted a solid gain over that five-year run. Or any gain at all, to be accurate.

The NAB share price is the next best performer, down 0.4% over five years. ANZ shares have lost 19.3% over that period while Westpac trails the pack, with shares in the ASX 200 bank down 30.4%.

The post Is the CBA share price overvalued compared to other ASX 200 banks? appeared first on The Motley Fool Australia.

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More reading

• The CBA share price has been making big news this week. What can ASX 200 investors expect next?
• How big is the CBA dividend yield right now?
• What does CommBank’s latest update mean for NAB shares?
• Is the CBA share price a buy after the bank’s FY22 results?
• Does this signify more bad news for ASX BNPL shares like Zip?

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 recommended Westpac Banking Corporation. 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’s been a positive start to the trading week so far this Monday for the S&P/ASX 200 Index (ASX: XJO). So far today, the ASX 200 has gained a decent 0.43% and is back over 7,060 points. But it’s been an even better start to the week for the Liontown Resources Limited (ASX: LTR) share price.

Liontown shares have charged out of the gate today. This ASX 200 lithium stock has gained a healthy 5.15% so far today and is now trading at $1.79 a share. That comes after the company closed at $1.70 a share last week and opened at $1.75 this morning.

So what might be eliciting this pleasing jump in valuation for Liontown shares today?

Well, it’s got nothing to do with any news or announcements out of the company itself, seeing as there are none today.

Why is the Liontown Resources share price on fire today?

However, we are seeing some big moves today with most of Liontown’s ASX lithium share peers. Pilbara Minerals Ltd (ASX: PLS) shares are enjoying a 2.4% boost today. Allkem Ltd (ASX: AKE) shares are up more than 2.8%. And Core Lithium Ltd (ASX: CXO) shares have exploded more than 10% higher to $1.62 a share.

It might be the latter company there that is to thank for these decisive share price rises. As my Fool colleague Brooke covered this morning, Core Lithium shares have rocketed after the company released an update on its exploration activities.

It was all good news, as Core Lithium reported promising spodumene results for its surface-level Anningie-Barrow Creek Project. It also reported a significant gold mineralisation at its Finniss Lithium Project. This is now estimated to hold up to, or even exceed, 18 million ounces of gold.

So good news for Core Lithium shares today. And it looks like this goodwill is spilling into the ASX’s other lithium shares like Liontown.

At the current Liontown Resources share price, this ASX 200 lithium stock has a market capitalisation of $3.92 billion.

The post Why is the Liontown share price leaping 5% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Core Lithium share price is soaring 10% on Monday
• Nearmap share price jumps 30% on takeover news
• The ASX 200 company selling everything it makes due to its major competitor being out of the market: fundie
• Carsales share price on watch as full-year profit jumps 23%
• Why this leading fund manager’s favourite ASX 200 bank share is NAB

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.

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The Piedmont Lithium Inc (ASX: PLL) share price is powering ahead during late morning trade.

This comes despite the company not making any price-sensitive announcements on the ASX since its North American Lithium project update.

At the time of writing, the Australian lithium miner’s shares are fetching for 91.2 cents apiece, up 15.44%.

What’s driving Piedmont shares higher today?

Investors are buying up the Piedmont share price following positive news surrounding the company.

According to ABC News, the US House of Representatives has approved a US$430 million (A$604 million) bill tackling climate change.

The package is aimed at providing long-term federal subsidies for investors seeking to transition into renewable energy products. This includes receiving tax credits for wind and solar and new credits for energy storage, biogas and hydrogen.

In particular, US consumers who buy an electric vehicle built in North America will be eligible for a $7,500 tax credit.

US President Joe Biden is expected to sign the bill into law sometime next week.

US House of Representatives speaker Nancy Pelosi illustrates the legislation as a “robust cost-cutting package that meets the moment, ensuring that our families thrive and that our planet survives.”

The historic win has put a number of lithium producers who are based in North America into the spotlight.

As such, shares in Sayona Mining Ltd (ASX: SYA) and Anson Resources Ltd (ASX: ASN) are up 5.46% and 3.33%, respectively.

About the Piedmont share price

After hitting a 52-week low of 48.5 cents on 15 July, the Piedmont share price has surged by 88%.

When looking at year to date, the company’s shares are up 24% for the period.

Based on valuation grounds, Piedmont commands a market capitalisation of approximately $416.78 million.

The post Why is the Piedmont Lithium share price rocketing 15% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Piedmont Lithium share price off to such a great start in August?
• Why are ASX lithium shares having such a top run on Wednesday?
• Why is the Piedmont Lithium share price piling on 6% today?
• Why has the Piedmont Lithium share price tumbled 30% in a month?

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

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The Bluescope Steel Ltd (ASX: BSL) share price is higher on Monday after the company impressed investors with its FY22 results.

Shares in the steel producer currently trade hands for $17.74 each, a 5.03% gain, after reaching a high of $18.02 earlier in the session. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.33% at the time of writing.

Let’s check the highlights of the company’s FY22 results.

What did Bluescope report?

• Revenue of $19.03 billion, up 47% on FY21
• Record underlying EBIT of $3.79 billion, up 119% on FY21
• Net profit after tax (NPAT) of $2.81 billion, up 135.49% on FY21
• Net cash flow from operating activities of $2.47 billion, up 40% on FY21
• Final unfranked dividend of 25 cents a share

The company reported significant growth in its top and bottom lines despite facing geopolitical and macroeconomic challenges.

Bluescope benefitted from more favourable steel spreads in FY22 which, in turn, contributed to its higher earnings. 2.5 million tonnes of steel was shipped domestically in FY22 as demand held strong.

The company reported strong earnings before interest and taxes (EBIT) performance across all of its operating segments.

Its North Star segment was up 181% on FY21 to $1.9 billion. Australian Steel Products was also up 92% to $1.29 billion while New Zealand and Pacific Islands recorded a 76% increase to $229 million.

Bluescope also announced it would continue to return value to its investors by expanding its share buy-back program. It also declared a final unfranked dividend of 25 cents per share.

What did management say?

In commenting on the results, Bluescope Managing Director and CEO Mark Vassella said:

We saw continued strong demand for our steel products and solutions despite recent macroeconomic and geopolitical volatility. We worked hard to improve our service levels which have been impacted by supply chain and pandemic-related disruptions. It’s truly heartening to see our people continue to step up, to serve our customers, and to operate safely and with great resilience. This record result is their record result.

He added:

BlueScope has delivered for shareholders in FY2022. The Company made nearly $1 billion in shareholder returns, with $344 million in dividends and $638 million in on-market buy-backs.

What’s next?

The outlook for 1H FY23 is less optimistic, with forecast earnings before interest and taxes (EBIT) of $800 to $900 million. That’s well down on the FY22 underlying EBIT figure of $3.79 billion.

The company noted that the commodity spread for HRC [hot-rolled coil] steel is expected to deteriorate significantly in US Midwest and Asian markets.

Bluescope share price snapshot

The Bluescope share price is down 15% year to date. It’s underperforming the wider S&P/ASX 200 Materials Index (ASX: XMJ) which is down 3.47% over the same period.

Bluescope has a current market capitalisation of $8.3 billion.

The post Bluescope share price lifts 5% on record earnings appeared first on The Motley Fool Australia.

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More reading

• Why is the Piedmont Lithium share price rocketing 15% on Monday?
• Is this ASX bank share a better buy than the big four banks?
• Carsales share price launches 5% as profit lifts to $161m
• Just how safe is the stock market right now?
• Bailador Technology share price leaps 5% as FY22 profits soar

Motley Fool contributor Matthew Farley 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.

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The jury’s still out on the outlook for the big four ASX banks, but there’s one alternative ASX share that might be looking too cheap to ignore, according to a leading broker.

The bank share in question is the Judo Capital Holdings Ltd (ASX: JDO) share price. It jumped 2.3% to $1.33 in morning trade after Citigroup reiterated its buy call ahead of Judo’s results.

This could explain why the alternative bank share is outperforming the big boys at the time of writing.

The ASX bank share that got the chop

The National Australia Bank Ltd (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA) shares are relatively flat. The Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) shares have dipped into the red.

But the outperformance of the Judo share price may not be that surprising. The shares have tumbled over 40% the past year, which is worse than its larger counterparts.

Citigroup reckons the underperformance is unjustified and it said:

At time of listing in October 2021, we expect few would have foreseen an acceleration in business credit growth from ~5% to ~13%; nor would many have forecast a cash rate of 1.85% at the time of result.

Despite the dramatic shift in the macro, we expect JDO to deliver on financial expectations set at the time of IPO.

What to expect in Judo’s full year results

The broker is forecasting cash earnings of around $8 million. It also noted that data from the Australian Prudential Regulation Authority (APRA) shows Judo may have hit its goal of building a $6 billion loan book as of 30 June 2022.

But results are backward looking. What will be key is management’s outlook during these volatile times.

Some of the things Citi is paying close attention to is Judo’s forward-looking statements on SME credit. Investors also will be keen to hear about Judo’s ability to fund growth and protect its net interest margin (NIM). This is an issue for all ASX bank shares because of rising interest rates and bond yields.

The higher rates and predictions of a slowing economy will also make credit quality another sensitive area. Loan defaults could rise materially if conditions worsen.

What is the Judo share price worth?

Citigroup added:

With little earnings currently, the long-term premise for JDO is its ability to reach medium term targets at scale.

After a solid 12 months of executing on plan, JDO management will need to articulate how it can maintain its medium term aspirations in a deteriorating macro environment.

But delivering to expectations may be all that’s needed for the Judo share price to rebound. After all, there is arguably little good news in its shares at current levels – not when it’s trading on around 1 times book value.

Citi’s 12-month price target on the Judo share price is $1.90. This implies a 40% plus upside for the alternative ASX bank share. Judo will hand in its FY22 earnings report card on 25 August.

The post Is this ASX bank share a better buy than the big four banks? appeared first on The Motley Fool Australia.

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More reading

• Carsales share price launches 5% as profit lifts to $161m
• Just how safe is the stock market right now?
• Bailador Technology share price leaps 5% as FY22 profits soar
• 3 ASX mining shares soaring between 6% and 20% on new finds
• Kogan share price drops amid warehousing legal battle

Motley Fool contributor Brendon Lau has positions in Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Judo Capital Holdings Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 Carsales.com Ltd (ASX: CAR) share price is surging on Monday following the release of the company’s financial year 2022 earnings.

Right now, it’s trading at $22.66, representing a 4.67% gain.

That’s slightly lower than its opening price of $22.75 which marks a 5% gain on its previous close. Meanwhile, its intraday high of $23.01 represents a seven-month high for the ASX stock.

Carsales share price takes off on full-year earnings

The Carsales share price is surging alongside its full-year revenue, profit, and dividend, as The Motley Fool Australia reported this morning.

The automotive classifieds company posted $509 million of revenue and $161 million of after-tax profit. It also upped its fully franked final dividend to 24.5 cents a share.

It also described a bright future, expecting to deliver “very strong growth” in financial year 2023.

That looks to be driven higher by strong trading conditions, its media and investment segments, and its new 100% stake in Trader Interactive.

Carsales CEO Cameron McIntyre said:

We continue to see robust levels of demand in all our key markets, reflecting the strength of our market position and the resilience of marketplace businesses through economic cycles.

This gives us confidence we can continue to deliver great results for our shareholders in financial year 2023.

How are brokers responding?

Not everyone appears thrilled with the company’s full-year results.

RBC’s Wei-Weng Chen noted the company’s dividend missed estimate and its capital expenditure was above its normal range, while UBS’s Tom Beadle said its guidance was “vague”, The Australian reports.

The company expects its expenditure to normalise this financial year amid strong trading conditions.

Meanwhile, the publication reported that the results didn’t surprise Macquarie’s Darren Leung, but its guidance was more positive than the broker predicted.

Finally, JP Morgan’s Don Carducci reportedly commented on an apparent upside on the financial year 2023 consensus.

Today’s gain sees the Carsales share price 9% lower than at the start of the year. In comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 7% year to date.

The post Carsales share price launches 5% as profit lifts to $161m appeared first on The Motley Fool Australia.

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More reading

• Carsales share price on watch as full-year profit jumps 23%
• 2 All Ords ASX shares this fund manager thinks are compelling

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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 recommended Macquarie Group Limited and carsales.com Limited. 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.

The stock market has been rebounding in recent weeks, with the S&P 500 up more than 11% over the past month.

While there are countless factors affecting stock market performance, at least part of the reason for this surge could be the positive inflation report from the Bureau of Labor Statistics. According to the report, inflation slowed in July, giving some investors hope that it’s reached its peak.

But whether this bear market is truly over is unclear right now. So is it really safe to invest? Or should you hold off? Here’s what you need to know.

When is the best time to invest in the stock market?

The positive trajectory of the market over the last few weeks has been promising, but there are no guarantees that it will continue. The stock market can be unpredictable, and even the experts can’t predict exactly how it will perform.

The good news, though, is that there isn’t necessarily a bad time to invest. While it may be tempting to only invest when the market is thriving, that can be expensive because you’re only buying when stock prices are at their highest. By investing during downturns, too, you can snag quality stocks at a discount.

This strategy is known as dollar-cost averaging, and it involves investing consistently throughout the year no matter what the market is doing.

Sometimes, you’ll end up buying when prices are at their peaks. Other times, you’ll be investing when the market is at rock bottom. Over time, though, those highs and lows should average out. Not only does this take the guesswork out of when to invest, but it’s also cheaper than only investing when prices are high.

Is it safe to invest right now?

Because there’s not necessarily a wrong time to invest, now could be the perfect opportunity to buy stocks. The market has not made a full rebound just yet, so many stocks are still priced at a discount.

The most important thing to keep in mind is that investing is a long-term strategy. If the market falls again, your portfolio could lose value — and that’s OK. Short-term ups and downs are normal, and over time, the market has historically seen positive average returns.

It can be challenging to avoid getting caught up in the market’s daily fluctuations, but a long-term outlook can make this volatility easier to stomach. For example, while the S&P 500 is currently down around 10% since the beginning of the year, it’s up more than 200% over the past 10 years.

By staying focused on the long run, these small daily movements won’t matter as much. Even if the market falls again, it will rebound eventually.

Keeping your money safe

One of the most effective ways to keep your portfolio safe during periods of economic uncertainty is to choose the right investments.

Even shaky stocks can sometimes thrive when the market is surging and the economy is strong, but only the strongest companies will survive downturns. The businesses with the healthiest underlying fundamentals are the most likely to pull through tough times, and the more of these stocks you have in your portfolio, the better.

Again, nobody knows for certain how the market will perform in the coming weeks or months. But when you have a portfolio full of healthy stocks, it’s far more likely your investments will bounce back from whatever may happen.

It’s not easy to invest when the market is turbulent, but it’s also not as risky as it might seem. By choosing the right stocks and holding them for the long term, you can rest easier knowing your money is as protected as possible.

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

The post Just how safe is the stock market right now? appeared first on The Motley Fool Australia.

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More reading

• Bailador Technology share price leaps 5% as FY22 profits soar
• 3 ASX mining shares soaring between 6% and 20% on new finds
• Kogan share price drops amid warehousing legal battle
• Is Novonix considered an ASX lithium share?
• GPT share price lifts despite 30% profit plunge

Motley Fool contributor Katie Brockman 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.

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

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The Bailador Technology Investments Ltd (ASX: BTI) share price is leaping higher today.

Bailador Technology shares closed on Friday trading for $1.50 and are currently trading for $1.57, up 4.7%.

This comes after the company, a specialist investor in the information technology and media sectors, released its results for the financial year ending 30 June (FY22).

Bailador Technology share price lifts on…

• Net profit after tax (NPAT) increased 23% from FY21 to $34.0 million
• Pre-tax net tangible asset (NTA) of $1.86 per share, up 22% year on year
• Declared a fully-franked dividend of 7.4 cents per share
• $144 million cash balance as at 30 June

What else happened during the year?

The company credits its 22% boost in NTA per share during the year to a number of positive cash realisations.

These included $118 million for the full cash realisation of Instaclustr. That represented 14.2 times costs and an 80% internal rate of return (IRR). Bailador Technology also had a full cash realisation of $20 million for Standard Media Index (SMI), representing 2.7 times cost and a 15% IRR, along with a partial cash realisation of SiteMinder for $15 million, representing 24.8 times cost and a 40% IRR.

The specialist investment company’s dividend reinvestment plan (DRP), established in February 2020, is active with a 2.5% discount. Investors looking to receive that dividend need to own shares before Thursday 1 September, when the stock goes ex-dividend.

What did management say?

Commenting on the financial year gone by, Bailador Technology managing partner David Kirk said:

We are delighted to present such a strong result to shareholders in a challenging year for information technology stocks. Our focus on realising investments in the buoyant market earlier in the year and waiting for more attractive valuations to make new investments has us very well positioned.

What’s next?

Ending FY22 with $144 million in cash, Bailador Technology recently invested $5 million in InstantScripts, its first investment of the FY23, with additional new and follow-on investments “likely” over the course of the year.

“There remain a significant number of very high-quality expansion stage technology companies in Australia,” Bailador managing partner Paul Wilson said.

“Capital market movements don’t change that. The difference is that there is currently less capital chasing those companies, and valuations are more reasonable,” Wilson said. “This environment gives us the opportunity to get access to those quality companies at reasonable valuations, and we are well positioned to do so.”

Bailador Technology share price snapshot

Over the past 12 months the Bailador Technology share price is up 15%. That handily beats the full-year loss of 7% posted by the All Ordinaries Index (ASX: XAO).

The post Bailador Technology share price leaps 5% as FY22 profits soar appeared first on The Motley Fool Australia.

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More reading

• 3 ASX mining shares soaring between 6% and 20% on new finds
• Kogan share price drops amid warehousing legal battle
• Is Novonix considered an ASX lithium share?
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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 positions in and has recommended Bailador Technology Investments Limited. The Motley Fool Australia has recommended Bailador Technology Investments Limited. 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 Materials Index (ASX: XMJ) is lifting 1.65% today, but three ASX mining shares are outperforming the index.

The Belararox Ltd (ASX: BRX), Aurelia Metals Ltd (ASX: AMI) and Sarytogan Graphite Ltd (ASX: SGA) are all rising today.

Let’s take a look at what these explorers reported today.

Aurelia Metals

The Aurelia share price is surging 19% today. Aurelia reported it has intersected the highest grades to date at the company’s Federation project in NSW. One standout result was 20m at 26.8% lead and zinc, 12.5 g/t gold and 0.8% copper at drill hole FDD184W5. Commenting on the results, CEO and managing director Dan Clifford said:

The Federation drilling has been nothing short of exceptional from the discovery hole to the final hole of the current surface drilling program.

Belararox

Belararox shares are lifting 6% today. The company announced drilling intersected “massive sulphide mineralisation” at Native Bee in Lachlan Fold Belt, NSW. New intersections NBRC001 and NBRC002 contain more zinc, copper, lead, silver and gold mineralisation than forecast in historic resource modelling. Managing director Arvind Misra said: “Initial floatation concentrates increase confidence in successful commercial recovery of zinc, copper, lead and silver”.

Sarytogan Graphite

Sarytogan shares are rising 20% today. This ASX mining share reported results from its first round of drilling at the Sarytogan Graphite Deposit. This is located in Central Kazakstan. Drilling intercepted with thick high-grade graphite at seven drill holes. Next, the company will continue to drill, undertake metallurgical test work and update the mineral resource. Commenting on the results, managing director Sean Gregory said:

Sarytogan is thrilled with this first round of drilling results that have exceeded expectations with broad intercepts of high-grade mineralisation in the Central Graphite Zone.

The post 3 ASX mining shares soaring between 6% and 20% on new finds appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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.

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The Kogan.com Ltd (ASX: KGN) share price is down more than 1% as the ASX retail share goes to court about one of its main warehouse logistics partners.

As an e-commerce ASX share, warehouses are an important area of Kogan’s business.

According to The Australian, Kogan is going after its warehousing and logistics partner eStore after it “allegedly failed to provide the services it was contracted to in late 2020”.

What didn’t Kogan’s logistics partner do?

Kogan has gone to the Victorian Supreme Court, saying that eStore did not “indicate to Kogan that there was any material risk that for the six-month period commencing November 2020 it would not be able to accommodate the number of pallets required by the online retailer”.

How much is this supposed to have cost Kogan? Quite a bit, according to the reporting by The Australian.

Kogan has said that it suffered from $2.1 million of extra charges and it was also not able to sell products during the peak period. The alleged amount of loss sales was $5.8 million, at a gross profit margin of 30%.

One of the main reasons for Kogan’s displeasure was that the ASX retail share was led to believe that eStore could scale up how much stock it could deal with “at short notice.”

The Australian reported on some of the contents of the filing:

Kogan could proceed on the basis that its requirements had been reviewed and eStore was working on a solution to meet them…(it) did not need to divert stock to other warehouses to accommodate its storage needs and…eStore would notify Kogan if there was going to be an issue with eStore meeting Kogan’s storage requirements of 30,000 actual pallet locations.

eStore then reportedly told Kogan in November 2020 that it was over its allocated space and that the Paramount centre was full. Kogan alleged that eStore stopped accepting consumer loads at all of its warehouses in Melbourne, not just Paramount.

Kogan then had to redirect the stock elsewhere. The Kogan share price has dropped around 80% since the start of November 2020.

What’s the stock situation now?

Kogan doesn’t give investors a detailed breakdown of its logistics operations.

However, it did say in a recent business update for FY22 that total inventories had dropped to $161.1 million at the end of the financial year. That figure breaks down into $139.2 million in warehouses and $21.9 million in transit. The company noted this reflected a “significant unwinding” of inventories from $227.9 million at the end of FY21.

Commenting on the current economic environment, founder and CEO Ruslan Kogan said:

Times are changing. In uncertain times, people don’t want to alter their lifestyle but they are happy to shift the way they shop. We know that in an environment where great value becomes even more important, Kogan.com services an important need.

We are making the business leaner to enable us to pass on cost efficiencies to customers in the form of lower prices. A leaner company means we discontinue parts of the business that are not delivering value to customers or shareholders, and also gives us the flexibility to respond to significant ongoing changes in the macro environment.

Kogan share price snapshot

Over the last month, Kogan shares have jumped 54%.

The post Kogan share price drops amid warehousing legal battle appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. 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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