Tag: Motley Fool

Lovisa Holdings Ltd (ASX: LOV) shares have tumbled in the past month, but could the company’s fortunes turn around?

The jewellery retailer’s shares closed at $13.10 each on Monday, 1.63% higher. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell 0.62% today.

Let’s check the outlook for Lovisa shares.

Significant upside

Lovisa shares have plunged nearly 17% since market close on 20 May. However, analysts at Morgans are tipping the company’s shares could skyrocket in the future.

The broker has placed an add rating on Lovisa with a $24 price target. That’s an 87% upside on the current share price.

It seems Morgans is optimistic about Lovisa’s prospects due to the company’s global expansion plans.

Analysts said the company could “prove to be one of the biggest success stories in Australian retail”.

In a recent market update, Lovisa revealed it has opened a net total of 59 stores year to date. While 14 stores have closed, 73 new stores have opened.

Since 2020, Lovisa has increased its presence by 168 stores. This includes 87 in Europe, acquired via its Beeline takeover.

In Europe overall, Lovisa has 163 stores while the company is also trading in 31 US states.

The company’s revenue in the first half of FY22 boomed 48.3% to $217.8 million, while gross profit surged 50.5% to $170.7 million.

Monash investors co-founder Simon Shields recently tipped Lovisa’s retail share network could grow from 550 stores to 2000 in the next seven to eight years. Commenting on this outlook, Shields said:

The earnings numbers will go up and the share price will follow.

Share price snapshot

The Lovisa share price has descended 13% in the past year. In the year to date, it has plummeted 36%.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has also lost nearly 13% in the past 12 months.

Lovisa has a market capitalisation of nearly $1.4 billion based on the current share price.

The post Could be ‘one of the biggest success stories’: Top broker tips 87% upside for Lovisa shares appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 ASX growth shares to buy with major upside potential
• Analysts are tipping these ASX growth shares as buys
• 3 ASX All Ordinaries shares that defied Thursday’s slump to leap higher
• This ASX 300 retail share could grow its global store network by 260%: fundie
• Will the Lovisa share price glitter in FY23?

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 recommended Lovisa Holdings 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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The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with another decline. In late trade, the benchmark index is down 0.6% to 6,435 points.

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

Bega Cheese Ltd (ASX: BGA)

The Bega share price is down 8% to $4.00. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the diversified food company’s shares to a neutral rating and cut the price target on them to $4.75. UBS believes that higher input costs are going to stifle Bega’s recovery.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 8.5% to $17.03. Investors have been selling Fortescue and other mining shares today following a pullback in commodity prices. This saw the iron ore price drop a sizeable 7% on Friday night. The S&P/ASX 200 Resources index is down 5.1% this afternoon.

Santos Ltd (ASX: STO)

The Santos share price has dropped 6% to $7.34. Investors have been selling Santos and other energy shares after oil prices sank on Friday night. Traders were selling down oil prices amid concerns that rising rates could cause a global recession and weigh on demand. This has led to the S&P/ASX 200 Energy index falling 5.3% on Monday.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price is down 9% to $1.48. This follows weakness in the gold sector today which has seen the S&P/ASX All Ords Gold index tumble over 5% on Monday. The precious metal pulled back on Friday amid strength in the US dollar.

The post Why Bega, Fortescue, Santos, and Silver Lake shares are tumbling lower appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 iron ore shares getting hammered on Monday?
• Fortescue share price plunges 7%, but here’s why Twiggy’s not worried about a Chinese iron ore cartel
• ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week

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.

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The big four ASX bank shares are outperforming the broader share market today.

Where the S&P/ASX 200 Index (ASX: XJO) has been deep in the doldrums today and is currently down almost 0.7% to 6,431 points, the ASX’s biggest banks are doing noticeably better.

At the time of writing, the Commonwealth Bank of Australia (ASX: CBA) share price is up 0.54% while shares in the National Australia Bank Ltd (ASX: NAB) are trading around 0.4% higher.

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is the best performer of the ASX 200 bank shares, up by 1.18%.

Meanwhile, the Westpac Banking Corp (ASX: WBC) share price is slightly lower in late afternoon trading down just 0.16% at the time of writing.

However, there’s no official news out of any of the big four banks and today’s share price movements reverse only a bit of the damage that the banks have seen in recent weeks.

Pain for the ASX 200 bank shares

In just the last month, there have been some double-digit declines for the major banks.

They have all fallen roughly the same amount in percentage terms, with the Westpac share price falling 18.6% over the past month, and shares in NAB, ANZ and CBA down a respective 16.25%, 15.9% and 16%.

Why such significant share price declines over a short period of time?

Inflation and interest rates

While most experts and investors blame inflation and rising interest rates for the share price falls in the ASX banking sector, it’s not that simple.

For example, analysts at Morgans recognise that higher interest rates could be a benefit for the net interest margins (NIMs) of banks.

If you haven’t heard of the NIM before, it’s the profitability metric showing how much a bank makes on its lending compared to the cost of the funding.

This is a very simplified example, but if the bank had $100,000 in customer savings accounts paying a 1% interest rate, and it had lent out $100,000 at an interest rate of 3%, the NIM would be 2%. Experts are expecting bank NIMs to rise in this environment.

However, one warning from the broker Morgans is that higher interest rates could lead to a worsening situation for the loan books and thereby lead to higher arrears.

Bank dividend yields could also appear less attractive to income-focused investors, which may hurt the valuations of ASX 200 bank shares.

RBA review

However, there was one new piece of financial news that appeared today.

According to reporting by the Australian Financial Review, the Australian Treasurer Jim Chalmers is going to appoint a panel of independent experts to review the central bank.

The newspaper reported that the review wais “likely to consider the composition of the RBA board members, the appointment processes, the 2% to 3% inflation target and the joint statement on the conduct of monetary policy between the treasurer and governor”.

The AFR reported that some experts believed the RBA board should have “more professional economists to challenge the governor and deputy governor on technical monetary policy issues”.

The post Why are ASX 200 bank shares having such a cracking start to the week? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the Temple & Webster share price surging 11% on Monday?
• Why are ASX 200 travel shares lifting off on Monday?
• Why did the BrainChip share price spike 7% this morning?
• What’s with the Core Lithium share price on Monday?

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 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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The Ethereum (CRYPTO: ETH) price has come charging back from yesterday’s lows of US$943. At that price, the world’s number two token by market cap had shed more than 35% in just one week.

Having gained 13% since this time yesterday to trade at US$1,084, the Ethereum price still remains down 22% over the past seven days. And it’s down a painful 78% from its 16 November record high.

So, what’s going on?

Why is the Ethereum price falling sharply?

Ethereum has come under pressure, along with the vast majority of cryptos, as investors adjust their weightings of risk assets amid fast-rising interest rates.

But it’s not just rising rates battering cryptos and the Ethereum price.

The spectacular failure of the TerraUSD stablecoin and its supporting token Luna last month shook confidence in the entire industry. And last week news emerged that crypto lender Celsius, which offered exceptionally high yields, might not be able to meet its obligations. Celsius has halted withdrawals.

Crypto sharks circle the weakest, leveraged hands

If you’ve invested in Ethereum, you likely have little to fear from crypto sharks, though their actions may in the medium term depress the broader market and the Ethereum price.

Shark traders, as they’re known, use their own computer networks to search blockchains for traders who are holding highly-leveraged and potentially weak positions.

According to Omakase, an anonymous contributor to the Sushi decentralised exchange (as quoted by Bloomberg):

In a downtrend environment, where yields are harder to access, what we are going to see is some actors utilise some more aggressive strategies, and that may not be necessarily good for the community… The environment has become more player versus player…

Most protocols offer a 10-15% liquidation fee. Triggering enough liquidations would cause a liquidation cascade where a motivated actor could simply hold a short position in order to profit for the subsequent secondary decrease.

If you bought Ethereum outright, the sharks won’t be circling your holdings.

Instead, they’re looking for leveraged traders in the decentralised finance (DeFi) space. That’s where people can borrow and lend cryptos from other traders without going through traditional banks.

The collateral used is other cryptos, like Ethereum. That means if the Ethereum price falls, so too does the value of their collateral. Should their collateral value fall enough, this triggers a liquidation, for which the successful shark trader receives a fee.

Blockchain analytics firm Nansen said that similar shark trading behaviour may have “contributed to the collapse of the TerraUSD stablecoin”.

However, Nathan Worsley, who searches for crypto traders on the verge of liquidation to earn the commission for liquidating them, defends the practice.

According to Worsley (courtesy of Bloomberg):

I would push back on classifying this as an attack. The reason is because without liquidations, you can’t have a lending market. So even though no one enjoys being liquidated, it’s essential that people do get liquidated in order to make the market and protect the protocol from insolvency.

The post Ethereum price collapses 35% in a week. Are crypto sharks to blame? appeared first on The Motley Fool Australia.

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More reading

• Why Bitcoin, Ethereum, and Dogecoin dropped and popped in the last 24 hours
• 3 reasons Bitcoin, Ethereum and Solana just hit their lowest levels this year
• Can the upcoming merge save the Ethereum price from further destruction?
• The Ethereum price just plummeted 17%. What’s going on?
• Could cryptos be facing an upcoming wave of institutional selling?

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 Ethereum. The Motley Fool Australia has positions in and has recommended Ethereum. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with another decline. At the time of writing, the benchmark index is down 0.75% to 6,426.8 points.

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

Appen Ltd ASX: APX)

The Appen share price is up 8.5% to $5.72. Investors have been buying this artificial intelligence data services company’s shares amid speculation that takeover interest may not be over. In addition, the tech sector is performing positively today following a strong night of trade for the Nasdaq on Friday.

Infomedia Limited (ASX: IFM)

The Infomedia share price is up 8% to $1.61. This morning the automotive industry-focused software company revealed that it has received a third non-binding takeover proposal. Infomedia has granted all three suitors with due diligence access. But it may not end at just three approaches. The company revealed that it is in ongoing talks with other parties.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is up 20% to $2.57. This follows news that the sports betting company has received a major strategic investment from SIG Sports Investment Corp. It has invested $94.16 million into PointsBet via a placement of shares at a 13% premium to its last close price. This makes SIG Sports Investment Corp the company’s largest shareholder with a 12.8% stake.

Vicinity Centres (ASX: VCX)

The Vicinity share price is up 6% to $1.85. This morning this shopping centre operator upgraded its guidance for FY 2022. Vicinity now expects funds from operations to be at or above 12.6 cents per security in FY 2022. This compares to its previous guidance of 11.8 cents to 12.6 cents. Management stated that this “reflects the sustained strength of retail sales and improved negotiation outcomes with retailers.”

The post Why Appen, Infomedia, PointsBet, and Vicinity shares are storming higher appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares having a cracking Monday
• Appen share price jumps 10% despite ASX 200 exit: What’s going on?
• ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade
• Infomedia share price surges 9% following third takeover approach
• These are the 10 most shorted ASX shares

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 Appen Ltd, Infomedia and Pointsbet Holdings Ltd. . The Motley Fool Australia owns Infomedia and Pointsbet Holdings Ltd shares. 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 All Ordinaries Index (ASX: XAO) is having a rough start to the week, but these shares are bucking the trend.

While the index is slumping 0.9% at the time of writing, they’re shooting up to 8.5% higher.

Let’s take a closer look at what’s going on with the shares outperforming their All Ordinaries peers on Monday.

3 ASX All Ordinaries shares leaping higher today

Appen Ltd (ASX: APX)

The Appen share price is taking off on Monday despite its removal from the S&P/ASX 200 Index (ASX: XJO). The tech stock was kicked out of the index as part of June’s quarterly rebalance which took effect this morning.

The news doesn’t appear to have damped the ASX All Ordinaries share price, though. Right now, it’s trading 8.54% higher at $5.72.

It’s also a good day for the broader technology sector. The S&P/ASX All Technology Index (ASX: XTX) is currently up 0.5% while the S&P/ASX 200 Information Technology Index (ASX: XIJ) has gained 0.73%.

Infomedia Limited (ASX: IFM)

Another ASX All Ordinaries share partying on Monday is Infomedia. It’s been propelled into the green on the back of a third takeover offer.

Right now, the Infomedia share price is $1.605, 7.72% higher than its previous close.

The automotive industry-focused software-as-a-service provider has been handed a $1.70 per share takeover offer from Solera Holdings.

It has received two other bids in the last few weeks. The first was also worth $1.70 per share while the second was higher at $1.75 per share.

Whether competition for Infomedia breaks into a full-blown bidding war is yet to be seen.

BetMakers Technology Group Ltd (ASX: BET)

The last of today’s ASX All Ordinaries overachievers is the BetMakers share price. The stock has surged 5.31% to trade at 34 cents each on Monday.

While there’s been no news from the bookmaker today, its peer PointsBet Holdings Ltd (ASX: PBH) is heading upwards on news of a strategic investment.

The interest in a fellow ASX betting company may have bolstered sentiment surrounding BetMakers.

The post 3 ASX All Ordinaries shares having a cracking Monday appeared first on The Motley Fool Australia.

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More reading

• Appen share price jumps 10% despite ASX 200 exit: What’s going on?
• Infomedia share price surges 9% following third takeover approach
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• 3 ASX All Ordinaries shares that leapt more than 10% on Thursday

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 positions in and has recommended Appen Ltd, Betmakers Technology Group Ltd, Infomedia, and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Infomedia, and Pointsbet Holdings 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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The leading investors from Wilson Asset Management (WAM) have told investors about two compelling All Ordinaries Index (ASX: XAO) ASX shares on their radar.

WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.

WAM Capital Limited (ASX: WAM) targets “the most compelling undervalued growth opportunities in the Australian market”.

Does WAM have a claim of stock-picking pedigree? The WAM Capital portfolio has delivered an investment return of 15.3% per annum since its inception in August 1999. That’s before fees, expenses, and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 8.5% per annum over the same timeframe.

Here are the two ASX shares WAM Capital has outlined in its recent monthly update.

Codan Limited (ASX: CDA)

WAM describes Codan as a technology company that develops a range of radio and detection products.

The fund manager pointed out that in May 2022, the company provided a “positive” market update. The update showed that it’s expecting to generate a record full-year profit in FY22, thanks to its strategy to diversify revenue.

The ASX share also says that the increase in profitability of its communications division contributed to the potential for Codan to match its record FY22 first-half profit of $50 million in the second half of the financial year.

WAM says that the company noted the expanding opportunity pipeline for Domo Tactical Communications and Zetron businesses are tracking “ahead of schedule”. Codan acquired the two businesses in 2021. The expectation is that both companies will deliver a strong result for the six months to June 2022.

The fund manager is positive about the upcoming Codan FY22 report and believes in management’s ability to sustain profits.

Johns Lyng Group Ltd (ASX: JLG)

This business continues to be one of the preferred picks by WAM.

Johns Lyng is an integrated building services group delivering building and restoration services across Australia and the United States.

WAM points out that last month, the ASX share announced its managing director and CEO Scott Didier and executive director and chief operating officer Lindsay Barber each sold 1 million shares in the company. The reason provided was to “manage their personal asset portfolios”.

As the fund manager noted, the share sales represented a small percentage of their holdings in the company, but this still led to a decline in the Johns Lyng share price after the update.

But, the ASX share did say that it’s on track to reach its FY22 guidance. Those targets are sales revenue of $802.4 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $78.7 million.

The fund manager calls Johns Lyng a quality business with an “important role” in managing ongoing catastrophes. As an example, WAM referred to the appointment to lead New South Wales’ flood recovery response earlier this year. WAM thinks that further projects will increase its profits in the future.

The post These 2 ASX shares are ‘compelling opportunities’: fund manager appeared first on The Motley Fool Australia.

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More reading

• Why is the WAM Capital share price down 20% in June?
• Why Codan, Incitec Pivot, Xero, and Zip shares are dropping
• Why is the WAM Capital share price sliding today?
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares
• 2 ASX shares just had a shocker but are awesome long-term buys: fund

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 Johns Lyng Group Limited. The Motley Fool Australia has recommended Johns Lyng Group 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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It’s been an unhappy start to the trading week for the S&P/ASX 200 Index (ASX: XJO) this Monday. At the time of writing, the ASX 200 has gotten out on the wrong side of the bed and is presently down by 0.62%.

But let’s not let that get us down. So instead, let’s take a look at the shares that are currently at the top of the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Monday

Whitehaven Coal Ltd (ASX: WHC)

ASX 200 coal miner Whitehaven is first up this Monday. So far today, a sizeable 17.02 million Whitehaven shares have found their way around the ASX boards. There’s been no major news out from Whitehaven today, save for a share buyback notice (which could be boosting volumes itself).

However, it’s far more likely that this coal company’s near-6% plunge today is the culprit behind this elevated trading volume. Whitehaven shares have shed 5.8% today and are now going for $4.71 each.

Core Lithium Ltd (ASX: CXO)

It’s lithium stock Core Lithium’s first day as an ASX share today after the company made the cut on the index’s latest rebalancing. And the company is today the ASX 200’s second most traded share by volume, with 20.77 million shares having swapped hands as it currently stands.

Unfortunately, this seems to be in response to Core Lithium’s nasty share price plunge (talk about baptism by fire) today. The company has shed a depressing 6.5% today and is now at $1.08 a share.

Pilbara Minerals Ltd (ASX: PLS)

Our final and most traded company today is another ASX 200 lithium stock in Pilbara Minerals. So far this Monday, a whopping 25.9 million Pilbara shares have been bought and sold on the ASX. And once again, it seems share price volatility is behind this volume.

Pilbara shares haven’t been hit quite as hard as Core Lithium. But this lithium heavyweight is still down a displeasing 3.1% just above $2 a share after trading between $2 and $2.14 over the day thus far.

The post Here are the 3 most heavily traded ASX 200 shares on Monday appeared first on The Motley Fool Australia.

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More reading

• Why is the Temple & Webster share price surging 11% on Monday?
• Why are ASX 200 travel shares lifting off on Monday?
• Why did the BrainChip share price spike 7% this morning?
• What’s with the Core Lithium share price on Monday?
• ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade

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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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.

On June 13, 2022, the S&P 500 — one of the most popular indexes that tracks the largest 500 US public companies — entered a bear market, dropping more than 20% from its early January 2022 highs. There are no foolproof plans that can save you during a bear market, but there are some things smart investors do to weather the storm. Here are three of them.

1. Don’t panic

When the stock market enters a bear market, the first thing investors need to remember is that bear markets have shown to be an inevitable occurrence in the stock market. They’ve happened in the past and assuming they’ll continue to happen going forward is one of the safer bets you can make. The one thing you don’t want to do in a bear market is panic. Panicking can especially be counterproductive if it causes you to sell your stocks just because of the dropping prices.

The goal should always be to buy low and sell high, not vice versa. If you’re not nearing retirement, you have time on your side to let the market rebound. Not every stock that drops in price eventually rises again, but history has shown us that the major indexes — such as the S&P 500, Dow Jones, and Nasdaq Composite — and the market as a whole tend to bounce back eventually.

2. Focus on diversification

“Don’t put all your eggs in one basket” is a relevant saying in many aspects of life, and investing is no different. Diversification is one of the main investment pillars, and any solid portfolio should have a fair mix of assets. You never want to find yourself in a situation where the success or downfall of your portfolio is too reliant on too few stocks. Diversification is key to reducing some of the risks that come during bear markets.

If your portfolio is well-diversified, you may not experience the hypergrowth that can happen with single companies, but you’re also not totally exposed to sudden drops that can occur. For example, having a good chunk of your portfolio in Netflix (NASDAQ: NFLX) may have been lucrative while it was going from just over $150 per share in June 2017 to over $690 per share in October 2021. But with it dropping close to 70% in 2022, such a portfolio mix could be detrimental.

3. Use dollar-cost averaging

It can be hard not to let your emotions involved when dealing with money under normal circumstances, but this is especially true during bear markets when you’re seemingly losing money. To help with this, investors can begin to dollar-cost average. This involves making regular investments at set times, regardless of how stocks are performing at the time.

Not only does dollar-cost averaging keep you consistent because you invest at set intervals instead of stopping because prices are falling, but it also helps you lower your cost basis during bear markets. Your cost basis is the average price you’ve paid for a particular stock since you’ve likely purchased different shares at different prices over time. The lower your cost basis, the higher your profit when you eventually sell a stock.

The goal is to avoid a situation where you’re trying to time the market. Dollar-cost averaging helps with that. If you believe prices will keep dropping, it’s hard to convince yourself to buy at today’s price if the price will be lower soon. But you never know how long trends last. As an investor, one of the best things you can do is remain consistent and trust that you’re investing in great companies and funds that will produce great long-term returns.

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

The post 3 things the world’s smartest investors do in every bear market appeared first on The Motley Fool Australia.

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Stefon Walters 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 Netflix. The Motley Fool Australia has recommended Netflix. 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 Lake Resources N.L. (ASX: LKE) share price is in the red today amid the company announcing a positive update.

At the time of writing, the clean lithium developer’s shares are down 13.69% to $1.355.

Let’s take a look at what’s driving the fall in the company’s share price.

What’s happened to Lake Resources shares?

Investors are selling off Lake Resources shares as market sentiment wears off across the lithium space.

Shares in lithium peers Core Lithium Ltd (ASX: CXO) are down 6.9% while Sayona Mining Ltd (ASX: SYA) is 7.14% lower.

Furthermore, the S&P/ASX 300 Metals and Mining Industry (ASX: XMM) has dropped 5% today. The index contains the top 300 ASX companies that are involved with gold, steel, and precious metals.

According to an announcement from Lake Resources this morning, the company advised Stu Crow will serve as executive chair on its board.

Crow will oversee the transition to serve the company’s critical North American and Asian supply chains. This includes hiring a new CEO, board members, and establishing the company’s United States offices.

The transition is expected to occur over a six-month period.

Currently, Lake Resources is developing four lithium brine projects in Argentina with more than 150 people working across the sites.

The company has one of the largest lithium lease holdings in Argentina, acquiring more than 2,200 square kilometres of land. The majority of these leases are wholly-owned.

Management commentary

Commenting on the company’s ambitions, Crow said:

Lake’s aspirational target is to reach capacity of 100,000 tonnes per annum by 2030 which will underpin Lake’s ambition to become a leading global producer of sustainable high purity lithium.

We are now establishing a North American presence to serve our off-take customers, continue to work with our US-based technology partner, and engage capital markets.

We are aligning project delivery, extraction technology, and operations. We are interviewing candidates with exceptional experience for the CEO and managing director role, and also candidates for the board to reflect growth of the company in the US markets.

As part of the transition, Lake Resources managing director Steve Promnitz will step down from his role.

Crow further added:

In this regard we are exceptionally grateful for Steve’s pioneering efforts in project generation to establish Lake’s presence in Argentina.

Lake Resources share price snapshot

Despite today’s heavy fall, the Lake Resources share price has been one of the best places to invest in the past year.

In 12 months, the company’s shares are up almost 350%.

Based on valuation grounds, Lake Resources commands a market capitalisation of roughly $1.8 billion.

The post Why is the Lake Resources share price sinking 14% today? appeared first on The Motley Fool Australia.

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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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