Tag: Motley Fool

The Vulcan Energy Resources Ltd (ASX: VUL) share price has started the week strongly.

In afternoon trade, the lithium developer’s shares are up 6% to $7.97.

Why is the Vulcan share price storming higher?

The Vulcan share price is charging higher today after investor sentiment in risk assets improved greatly.

This has been driven by the release of economic data in the United States, which shows that inflation slowed in April from a multi-decade high in March.

This has sparked hopes that the US won’t fall into a recession and that the US Federal Reserve won’t need to be as aggressive with its rate hikes.

The latter bodes well for higher risk assets like lithium shares, which have seen their valuations come under significant pressure in recent months.

Anything else?

It isn’t just the Vulcan share price that is rising today. A number of other lithium shares are rising today.

Core Lithium Ltd (ASX: CXO), Lake Resources N.L. (ASX: LKE), and Liontown Resources Limited (ASX: LTR) shares are also recording solid gains today.

As well as getting a boost from improvements in risk sentiment, optimism that lithium prices will remain higher for longer has given the sector a lift in recent sessions.

A key driver of this was the recent BMX auction update from Pilbara Minerals Ltd (ASX: PLS), which revealed another record lithium price received. Furthermore, it was well ahead of what analysts Macquarie Group Ltd (ASX: MQG) were expecting.

This appears to indicate that the lithium market has remained strong despite rising inflation and concerns over global economic growth.

The post Here’s why the Vulcan share price is charging 6% higher appeared first on The Motley Fool Australia.

More reading

• Up 6%, why has the Vulcan share price surged higher today?
• Do Vulcan Energy shares pay dividends?
• Who wants to be a millionaire? If only you’d invested $10,000 in these ASX shares 10 years ago
• Why has the Vulcan share price tumbled 25% in a month?
• Vulcan share price pops 5% on future lithium expectations

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 recommended Macquarie 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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Today is a huge day for AGL Energy Limited (ASX: AGL) and, according to a major opponent of the company’s previously planned demerger Mike Cannon-Brookes, it’s a “huge day for Australia” too.

The company has ditched its intent to separate into coal-fired power focused Accel Energy and energy retailer AGL Australia. The decision has also spurred the resignation of its CEO, chair, and two directors.

Let’s look back at the Atlassian Corporation (NASDAQ: TEAM) boss’ campaign against the S&P/ASX 200 Index (ASX: XJO)’s company’s split.

Cannon-Brookes celebrates as AGL split abandoned

AGL had faced vehement opposition to its previously planned demerger – most notably from Cannon-Brookes.

The billionaire snapped up an 11.28% stake in AGL earlier this month so he could vote ‘no’ on the split.

He is today celebrating the successful campaign brought about through his investment vehicle Grok Ventures.

Wow. A huge day for Australia

Had to sit down & take it in. This live shot couldn’t be a better metaphor for a better, greener path ahead

We embrace the opportunities of decarbonisation with Aussie courage, tenacity & creativity.

Lots of work but we CAN do this pic.twitter.com/mSCQl554C0

— Mike Cannon-Brookes (@mcannonbrookes) May 29, 2022

https://platform.twitter.com/widgets.js

The Keep it together Australia campaign aimed to convince shareholders to join Cannon-Brookes in opposing the split.

It claimed the company should increase its investment in renewable energy rather than separate.

The demerger will create an energy retailer that is committed to buying most of its energy requirements from a generation business that is heavily reliant on coal-fired power.

AGL is stronger as a single entity that takes advantage of its vertically integrated model to accelerate the shift to green energy.

Keep it together Australia

The company’s rebuttals to such claims – and an independent expert’s tick of approval – were seemingly unsuccessful.

“AGL Energy believes the demerger proposal will not receive … the 75% approval threshold,” the company admitted this morning.

AGL chair Peter Botten and AGL CEO and managing director Graeme Hunt will resign following the plan’s abandonment and after finding suitable replacements, Jacqueline Hey and Diane Smith-Gander will also resign from the AGL board.

Cannon-Brookes has previously noted Grok Ventures intends to fight for two board seats, saying:

We want to ensure that AGL has the talent, capital, capability and oversight that is required to embrace the opportunity presented by decarbonisation.

The post AGL demerger news ‘huge day for Australia’: Mike Cannon-Brookes appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: AGL demerger scrapped, A2 Milk jumps
• AGL share price deflates 4% in light of new future
• AGL share price on watch as demerger scrapped
• 5 things to watch on the ASX 200 on Monday
• How do ASX shares typically perform following a demerger?

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 Atlassian. 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.

Market volatility is as much of a part of the stock market as the stocks themselves. It’s always been that way, and I’m willing to bet my last two quarters that it’ll always be that way. For investors, the sooner you get comfortable with volatility, the better, because you learn not to let short-term movements affect your long-term investing strategy and goals.

Here’s why market volatility should be an afterthought if you’re a long-term investor. 

Don’t let market drops make you panic-sell

Imagine if you were an investor in the S&P 500 and decided to sell your shares during the beginning of the COVID-19 pandemic when stock prices dropped. On March 20, 2020, the S&P was just above 2,300. However, as of May 25, 2022, the S&P 500 is around 3,960 — even with the S&P 500 down over 17% YTD.

The same goes for the Nasdaq Composite index. During the pandemic, it dropped from over 9,731 to just above 6,879, yet as of May 2022, it sits above 11,300 — while being down over 28% YTD. Abandoning your investments because of market downturns can not only be costly because of the potential taxes, but it can also take away from future gains. Panic selling can be pricey.

Time in the market matters

One of the best investing quotes to follow is “time in the market is better than timing the market.” First, it points to the very real fact that timing the market is all but impossible to do consistently long term. Investors may think they can do it, but generally, all it takes is a bit of time to show them why that thought is misguided. On the other end, the quote showcases the huge role time can play in compounding your investments.

Compounding occurs when the money you make on investments begins to make money on itself, and it’s largely responsible for how many people acquire their wealth. For compounding to work its magic, though, it needs time. And part of giving it that time is not abandoning your investments — or making decisions that go against your better interest long term — when you experience short-term volatility, regardless of how “extreme” it may seem at the time.

Embrace dollar-cost averaging

With dollar-cost averaging, you invest specific amounts at regular intervals, no matter what the stock’s price is at the time. Dollar-cost averaging is a great investing strategy because it can take a lot of the emotions out of investing, which is particularly important during periods of high volatility because it’s easy for investors to let their emotions impact their investing decisions.

How you’d prefer to break down your investments is all on you. It can be weekly, bi-weekly, monthly, quarterly, or whatever. What’s most important is that you set a specific schedule and stick to it. If you have a set schedule, it’s easy to ignore market volatility because it doesn’t (or at least shouldn’t) matter to you anyways. Think about your 401(k) plan: Each paycheck, money is taken out and invested into your elections, regardless of the investment’s price at the time.

That’s essentially how you want your investing process to work. Ignore short-term market volatility and keep your eyes on the prize with your long-term goals. You’ll be glad you did. 

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

The post In long-term investing, market volatility should be an afterthought appeared first on The Motley Fool Australia.

More reading

• Why has the Core Lithium share price surged 6% today?
• ASX 200 midday update: AGL demerger scrapped, A2 Milk jumps
• Why now could be a good time to invest in Vanguard Msci Index International Shares ETF
• Let Dividend King stocks lead you to the promised land
• Why is the A2 Milk share price climbing 11% on Monday?

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 Core Lithium Ltd (ASX: CXO) share price is on the move today following strong interest from investors.

This comes despite the company not releasing any price-sensitive news to the ASX.

At the time of writing, Core Lithium shares are travelling 6.51% higher to $1.39.

What’s driving Core Lithium shares up and away?

Investors are snapping up Core Lithium shares after the company has been progressing its wholly-owned Finniss Lithium Project.

Since the beginning of the year, the company’s share price ascended on the back of market confidence in lithium demand.

Popular belief is that Core Lithium will need to play a key role in meeting the future lithium supply gap. Many expect supply will need to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.

Earlier this month, the company provided a development update on its flagship project, which sent Core Lithium shares 9.28% higher.

Management highlighted that the crushing services contract awarded to CSI Mining Services will begin mobilisation to the site next month.

The crushed ore will be stockpiled before being processed to make spodumene concentrate by the dense media separation (DMS) plant. This will then be ready for export to Core Lithium customers.

Core Lithium is building Australia’s most advanced lithium project, with first production of lithium concentrate scheduled in Q4 2022.

Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside Western Australia.

The Australian government is focused on increasing the capabilities of onshore refinement of critical minerals.

Last year, the Australian federal government awarded Core Lithium’s Finniss site Major Project Status (MPS).

Achieving MPS underlines the importance of the strategic significance of this project to Australia. It provides extra support, including a single-entry point for regulatory approvals, project support and coordination with government authorities.

Core Lithium share price snapshot

It has been a stellar year for Core Lithium shares, surging to a record high of $1.675 before taking a slight breather.

When looking at the past 12 months, the miner’s shares are up an outstanding 470%.

Based on today’s price, Core Lithium has a market capitalisation of roughly $2.26 billion, with over 1.73 billion shares outstanding.

The post Why is the Core Lithium share price up 6% today? appeared first on The Motley Fool Australia.

More reading

• Why has the Core Lithium share price surged 6% today?
• Here’s why the Core Lithium share price is storming higher
• Here are the top 10 ASX shares today
• Lighting up the market: ASX lithium stocks surge again on Tuesday
• Here’s why the Core Lithium share price is racing higher today

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 Core Lithium Ltd (ASX: CXO) share price is on the move today amid strong interest from investors.

This comes despite the company not releasing any price-sensitive news to the ASX.

Core Lithium shares are trading up 4.98% at $1.37 at the time of writing, after hitting an intraday high 6.51% higher at $1.39. The S&P/ASX 200 Index (ASX: XJO) is also in the green today, currently up 0.92%.

What’s driving Core Lithium shares up and away?

Investors are snapping up Core Lithium shares after the company has been progressing its wholly-owned Finniss Lithium Project.

Since the beginning of the year, the company’s share price ascended on the back of market confidence in lithium demand.

Core Lithium is among ASX lithium shares likely to play a key role in meeting a future lithium supply gap. This is expected to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.

Earlier this month, the company provided a development update on its flagship project which sent Core Lithium shares 9.28% higher.

Management highlighted that the crushing services contract awarded to CSI Mining Services will begin mobilisation to the site next month.

The crushed ore will be stockpiled before being processed to make spodumene concentrate by the Dense Media Separation (DMS) plant. This will then be ready for export to Core Lithium customers.

Core Lithium is building Australia’s most advanced lithium project, with the first production of lithium concentrate scheduled in Q4 2022.

Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside of Western Australia.

The Australian government is focused on increasing the capabilities of onshore refinement of critical minerals.

Last year, Core Lithium’s Finniss was awarded Major Project Status (MPS) by the Australian federal government.

Achieving MPS underlines the importance of the strategic significance of this project to Australia. It provides extra support, including a single-entry point for regulatory approvals, project support and coordination with government authorities.

Core Lithium share price snapshot

It has been a stellar year for Core Lithium shares, surging to a record high of $1.675 before taking a slight breather.

When looking at the past 12 months, the Core Lithium share price is up an outstanding 470%.

Based on today’s price, Core Lithium has a market capitalisation of roughly $2.26 billion, with more than 1.73 billion shares outstanding.

The post Why has the Core Lithium share price surged 6% today? appeared first on The Motley Fool Australia.

More reading

• Why is the Core Lithium share price up 6% today?
• Here’s why the Core Lithium share price is storming higher
• Here are the top 10 ASX shares today
• Lighting up the market: ASX lithium stocks surge again on Tuesday
• Here’s why the Core Lithium share price is racing higher today

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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up 0.8% to 7,240.3 points.

Here’s what is happening on the ASX 200 today:

AGL demerger scrapped

The AGL Energy Limited (ASX: AGL) share price is tumbling lower on Monday after the energy giant announced that it is scrapping its demerger. Although the AGL board continues to believe the demerger would have been “the best way forward,” it concedes that it was unlikely to secure the required shareholder votes. AGL estimates that it has spent $160 million on the demerger process to date. In response to the news, AGL’s chairman and CEO announced their exits.

A2 Milks jumps

The A2 Milk Company Ltd (ASX: A2M) share price is racing higher today. This follows news that its smaller rival Bubs Australia Ltd (ASX: BUB) has signed a deal with the Biden Administration for the supply of 1.5 million tins of infant formula. Investors appear to be hoping that the embattled infant formula company will also strike a similar deal. The US is currently facing major shortages due to the closure of a major manufacturing plant.

Tech shares storm higher

The tech sector has played a key role in driving the ASX 200 higher on Monday. Strong gains from the likes of Block Inc (ASX: SQ2) and Zip Co Ltd (ASX: ZIP) have driven the S&P ASX All Technology index 3.1% higher. Investors were scrambling to buy tech shares after data showed that US inflation is slowing.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the A2 Milk share price with a 10% gain amid hopes that the company will get a boost from US infant formula shortages. Going the other way, the Appen Ltd (ASX: APX) share price is the worst performer with a 3% decline. Investors have been selling this struggling artificial intelligence data services company’s shares since its takeover approach was withdrawn.

The post ASX 200 midday update: AGL demerger scrapped, A2 Milk jumps appeared first on The Motley Fool Australia.

More reading

• Why is the A2 Milk share price climbing 11% on Monday?
• AGL share price deflates 4% in light of new future
• Why is the Block share price surging 8% higher today?
• Why these ASX coal shares could be ‘bigger than Ben-Hur’: fundie
• ‘Intestinal fortitude’ or just wishful thinking? Why do some investors stick with Zip 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, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended A2 Milk. 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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I believe that this could be a good time to consider investing in the exchange-traded fund (ETF) Vanguard Msci Index International Shares ETF (ASX: VGS).

There are plenty of ETFs on the ASX to choose from. However, I believe that the VGS ETF may be one of the leading picks for investors to choose from in the ETF space.

The ETF is about investing in a portfolio of global shares from a wide variety of major developed economies.

When people talk about the ‘global’ share market, they are sometimes talking about the benchmark that this Vanguard ETF seeks to follow.

I believe that by simply tracking the long-term return of the global share market, investors can see decent results. There are a few different reasons why I like the VGS ETF.

Low fees

One of the main reasons why this ETF is so popular is because it enables regular investors to track the returns of the global share market for a very low fee.

According to Vanguard, this ETF has an annual management fee of just 0.18% per annum. It’s not the cheapest ETF that Vanguard offers, but I think that this low cost is very compelling because it means investors get a vast majority of the net returns that the underlying shares deliver.

I think that the fees are also reasonable when looking at the diversification of the ETF.

Diversification

For me, the Vanguard Msci Index International Shares ETF could be one of the best options for diversification.

According to Vanguard, at the end of April 2022, the ETF had around 1,500 different positions. That’s a lot different businesses. I think this level of holdings is useful for reducing the risk for individual companies.

It’s not just a technology ETF, though IT does get the biggest allocation at 22.1% of the portfolio as at April 2022. There are many different sectors represented including healthcare, financials, consumer discretionary, industrials, consumer staples, communication services, energy, materials, utilities, and real estate.

Strong portfolio holdings

The biggest positions in an ETF’s portfolio can have the largest effect on the returns.

Many of the world’s strongest technology names are held by the VGS ETF. Within the top ten holdings are names like: Apple, Microsoft, Alphabet, Amazon, Tesla, Meta Platforms, and Nvidia. Berkshire Hathaway is also one of the biggest holdings.

I think that strong businesses can generate good investment returns over time.

As always, past performance is not a reliable indicator of future performance. However, with the quality names in this portfolio, it’s not too surprising that even after the recent declines, the VGS ETF has returned an average of 11.4% per annum in the five years to April 2022.

Why invest now with the VGS ETF?

I’ve talked about what investors get with this ETF. I think the current price is now much more attractive after a fall of more than 10% in 2022.

Investing is about picking a good long-term investment, but it’s also about buying assets at a good price in my opinion. The VGS ETF is now cheaper and I think being able to buy a large group of businesses at a cheaper price is attractive.

The post Why now could be a good time to invest in Vanguard Msci Index International Shares ETF appeared first on The Motley Fool Australia.

More reading

• 3 fantastic ETFs for ASX investors to buy next week
• Why I think it’s a good time to buy the Vanguard MSCI Index International Shares ETF (VGS)
• 3 top ETFs for ASX investors to buy now
• VGS: Were you better off buying the S&P 500 ETF?
• 3 fantastic ETFs for ASX investors to buy this week

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Microsoft, Nvidia, Tesla, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Meta Platforms, Inc., Nvidia, and Vanguard MSCI Index International Shares ETF. 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.

A well-rounded investment portfolio should include dividend-paying companies. As a shareholder, dividends are a way to be rewarded for holding on to your investments, and when utilized the right way, they can make up a good portion of your portfolio’s total return. However, not all dividend-paying companies are created equal. If you’re looking for consistent, well-established companies, look no further than Dividend Kings.

Here’s why you should let them lead you to the promised land.

They’ve stood the test of time

Dividend Kings got their honorable title because they’ve managed to increase their yearly dividend for at least 50 consecutive years. Being able to maintain a dividend for that long is an accomplishment in itself, but being able to increase it for that many years is a completely different feat. With Dividend Kings, you know you’re investing in companies that have stood the test of time.

Any company with the Dividend King title in 2022 has increased its dividend since 1972, at a minimum. During that time, these companies have made it through some of the toughest economic conditions the U.S. has seen. Dividend Kings have made it through:

• Black Monday (1987).
• Dot-com bubble collapse (2000).
• The Great Recession/Financial crisis (2008-2009).
• COVID-19 pandemic (2020).

There are many solid companies who had to cut their dividends during those times, including prominent Fortune 500 companies, but Dividend Kings stood tall and weathered the storm. 

There’s power in the DRIP

While receiving dividends can be a great source of income, the real power comes when you enroll in your brokerage company’s dividend reinvestment program (DRIP). With DRIP, any dividends you receive are automatically used to buy more shares of whatever company or fund paid them out. This adds to the power of compound interest.

Let’s imagine we have two funds — one without a dividend and one with a 2.5% dividend yield — and you contributed $500 into both monthly, receiving a 10% annual return (the historical average of the S&P 500). Assuming the dividend yield stays the same, here’s how the account totals would look in 25 years:

Fund	Dividend Yield	Amount Contributed in 25 Years	Account Total After 25 Years
Fund 1	0%	$150,000	$590,000
Fund 2	2.5%	$150,000	$864,000

Data source: author calculations

With zero additional effort, receiving (and reinvesting) dividends increased your account total by roughly $274,000. As a dividend investor, it helps to delay receiving payouts in cash until retirement, when having an additional source of income can be more beneficial. Until then, you can reap major rewards by using a DRIP. Even if you manage to accumulate $500,000 in a fund with a 2.5% yield, that’s $12,500 in yearly payouts.

More importantly, it helps to invest in Dividend Kings because you can, in good faith, not only rely on the dividend but also anticipate it increasing. Your dividend payout increases, your number of shares increases, and you receive higher payouts; it’s a cycle you want to get stuck in. 

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

The post Let Dividend King stocks lead you to the promised land appeared first on The Motley Fool Australia.

More reading

• Why is the A2 Milk share price climbing 11% on Monday?
• AGL share price deflates 4% in light of new future
• Why is the Block share price surging 8% higher today?
• Why is the Elders share price in reverse today?
• 2 ETFs I’d buy in June 2022

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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It’s proving to be a good day for the A2 Milk Company Ltd (ASX: A2M) share price despite the company’s silence. However, there has been good news from one of its peers.

At the time of writing, the A2 Milk share price is $4.79, 10.88% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1%.

Let’s look at what might be driving the milk and infant formula company’s stock higher.

What’s going on with A2 Milk on Monday?

A2 Milk shares are surging on Monday. The gains come amid news the United States is addressing a major baby formula shortage.

That’s particularly good news for ASX-listed baby formula company Bubs Australia Ltd (ASX: BUB). It’s shaken on an agreement with the US Government that will see it providing 1.25 million tins of formula to the country.

It comes after a major US formula plant was shut down due to a bacterial infection.

While the news might have helped spur A2 Milk shares’ gains, it’s done wonders for the Bubs Australia share price.

Right now, the latter is 45% higher than it was at the end of Friday’s session.

A2 Milk’s revenue from infant nutrition products dropped 10.5% over the first half of financial year 2022. The dip was mostly due to fewer sales in China.

Thus, some market participants might be hopeful that a shortage in the US could bring higher demand for A2 Milk’s formula products.

A2 Milk share price snapshot

Sadly, today’s gains haven’t been enough to boost A2 Milk shares into the long-term green.

Right now, the company’s stock is 16% lower than it was at the start of 2022. It has also fallen 15% since this time last year.

At the current share price, the A2 Milk company presides a market capitalisation of more than $3.2 billion.

The post Why is the A2 Milk share price climbing 11% on Monday? appeared first on The Motley Fool Australia.

More reading

• Bubs share price rockets 77% on US deal with Biden Administration
• Low on milk? Fear not, here’s why Citi is bullish on the A2 Milk share price
• These 3 ASX shares have plunged this year: Expert reveals what to do
• Why is the Bubs share price toddling higher on Monday?
• Can A2 Milk shares benefit from the US baby formula shortage?

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 A2 Milk and BUBS AUST FPO. 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 AGL Energy Limited (ASX: AGL) share price is feeling the sting of uncertainty on Monday morning.

In early morning trade, shares in the polarising energy giant are down 2.5% to $8.65. However, moments ago the AGL share price was in the red by as much as 4.6%.

The undesirable performance comes amid news AGL will no longer proceed with its plan to split the company. Further, shareholders are making sense of what the path that lies ahead may now look like.

No more demerger, but now what?

As I covered in my earlier article today, the devised demerger of AGL Energy has been the target of ridicule for months. No one has been more vocal about potential shareholder destruction than tech billionaire Mike Cannon-Brookes.

Today, it appears the substantial AGL shareholder stands victorious in his battle against the demerger proposal. Triumphantly tweeting this morning, Cannon-Brookes said: “We embrace the opportunities of decarbonisation with Aussie courage, tenacity & creativity.”

Wow. A huge day for Australia

Had to sit down & take it in. This live shot couldn’t be a better metaphor for a better, greener path ahead

We embrace the opportunities of decarbonisation with Aussie courage, tenacity & creativity.

Lots of work but we CAN do this pic.twitter.com/mSCQl554C0

— Mike Cannon-Brookes (@mcannonbrookes) May 29, 2022

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However, now the activism comes to the pointy end of the stick: what does AGL do from here? It’s a question that is especially important to shareholders as the AGL share price slips today.

Furthermore, the question holds significant weight considering the company is estimated to have forked out $160 million to date on a now canned concept.

According to the announcement, the first order of business in the post-demerger world is to conduct a strategic review. This will encompass a broad assessment of what will create long-term value for shareholders amid an increasingly environmentally conscious landscape.

Additionally, the review will do the following:

• Leverage the analytical work carried out for the demerger proposal
• Assess any new approaches from third parties in terms of financial transactions; and
• Conduct further consultation with stakeholders including Grok Ventures, regulators, governments, and communities

The company added it believes the closure dates of its coal-fired power stations will continue to be accelerated.

AGL share price stumbles on board breakup

On Friday, reports flowed through financial media indicating that Cannon-Brookes’ Grok Ventures will scout out two seats at the AGL table if the demerger fell through. Well, here we are a few days later with that exact scenario.

Notably, the spots are already being made available by AGL board incumbents. Both Jacqueline Hey and Diane Smith-Gander are two non-executive directors resigning from the board. Meanwhile, chair Peter Botten and CEO Graeme Hunt are relinquishing their positions.

The AGL share price may potentially be on shaky ground until shareholders have a clearer outlook.

The post AGL share price deflates 4% in light of new future appeared first on The Motley Fool Australia.

More reading

• AGL share price on watch as demerger scrapped
• 5 things to watch on the ASX 200 on Monday
• How do ASX shares typically perform following a demerger?
• Australia’s renewable energy output could triple by 2030 under Labor. Will that impact these ASX 200 shares?
• AGL share price lifts despite intensifying demerger opposition

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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