Tag: Motley Fool

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been outperforming in 2022. And that has, in turn, impacted the company’s dividend yield.

While the S&P/ASX 200 Index (ASX: XJO) has slipped 6% this year so far, stock in the Australian retail bank has gained almost 11%.

At the time of writing, the Bendigo Bank share price is $10.31, flat to its previous close.

For context, the ASX 200 is currently up 1.15% on Friday.

So where does that leave the bank’s dividend yield? Let’s take a look.

What’s Bendigo Bank’s current dividend yield?

Have you owned Bendigo Bank shares over the last 12 months? You’ve probably received 53 cents per share in dividends.

At the end of financial year 2021, the retail bank handed out a 26.5-cent final dividend. It then offered shareholders another 26.5 cents per share interim payout for the half-year ended 31 December 2021.

That means, at its current share price, Bendigo Bank’s stock is trading with a 5.14% dividend yield. That’s certainly nothing to scoff at.

It’s also worth noting that Bendigo Bank’s dividends have historically been fully franked at 30%. Thus, some investors might find further value in the company’s payouts at tax time.

Additionally, investors more focused on the value of their holding than extra pocket money can take advantage of the bank’s dividend reinvestment plan (DRP).

That will see them receiving their payouts in the form of new shares, bypassing broker fees, and often obtaining a slight discount to the market price. In fact, Bendigo Bank has recently provided a 1.5% discount to those utilising its DRP.

The next time the market is expecting to hear dividend-related news from the bank is in mid-August. That’s when Bendigo Bank is aiming to drop its results for financial year 2022.

No doubt all eyes will be on it, its share price, and its dividend yield then.

The post What is the current dividend yield on Bendigo Bank shares? appeared first on The Motley Fool Australia.

More reading

• Why does the Bendigo Bank share price often fare worse than the ASX big four in downturns?
• If you’d bought $10,000 of Bendigo Bank shares 10 years ago, guess how much you’d have now
• How big will the Bendigo Bank dividend be in 2022?

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 positions in and has recommended Bendigo and Adelaide Bank 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 Chalice Mining Ltd (ASX: CHN) share price is on course to end the week on a positive note.

In early trade, the mineral exploration company’s shares were up as much as 15% to $6.58.

The Chalice Mining share price has pulled back a touch since then but remains up 9% to $6.22 at the time of writing.

Why is the Chalice Mining share price racing higher?

Investors have been bidding the Chalice Mining share price higher today following the release of a positive update relating to the company’s exploration activities at the 100%-owned Julimar Nickel-Copper-PGE Project.

According to the release, Chalice Mining has now received the final outstanding approvals to conduct planned low-impact exploration drilling at the Hartog-Dampier targets at Julimar.

The release notes that the company’s drilling will not involve any mechanised clearing of vegetation and strict environmental management measures will be used to minimise impact to the environment.

This includes the use of low-impact, small footprint diamond rigs and comprehensive flora, fauna and cultural heritage monitoring. Chalice advised that these small drill rigs will navigate around trees and maximise the use of existing cleared areas in order to keep disturbance to a minimum.

What’s next?

Drilling is expected to commence shortly at the high-priority targets at Hartog and Dampier. These are located to the north of the globally significant Gonneville PGE-Ni-Cu-Co-Au Deposit.

A total of 70 drill sites are planned over the ~10km of Julimar Complex strike length.

The aim of the drill program is to provide an initial test of the potential for green metals, including nickel, copper, cobalt, platinum, and palladium.

Management highlights that these metals are very rare and critical for decarbonising the global economy and addressing climate change through technologies such as renewables, electric vehicles, energy storage systems, and green hydrogen.

The post Here’s why the Chalice Mining share price is jumping 15% today appeared first on The Motley Fool Australia.

More reading

• These were the worst performers on the ASX 200 last week
• 3 ASX 200 mining shares that surged more than 5% today
• Why Alkane, Chalice Mining, PointsBet, and Qantas shares are rising today
• Here’s why the Chalice Mining share price slid 8% today
• Why Chalice Mining, EML Payments, Mineral Resources, and South32 shares are tumbling

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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Around a week ago, the Terra (CRYPTO: LUNA) began its deathly descent following the de-peg of its connected stablecoin TerraUSD (CRYPTO: UST).

Due to the cryptocurrency’s algorithmic stabilising mechanism, a huge influx of new LUNA tokens were minted. What followed was a monumental collapse in value as the price of the crypto plunged from US$65 to 1 cent in a matter of days.

As the dust begins to settle on one of the largest failings since the inception of crypto, the damage toll is becoming clear. Prominent crypto research firm Delphi Digital has revealed a colossal $10 million unrealised loss on its own LUNA investment.

Before we dive into the learnings, if you are looking for a more in-depth explanation of what led to the destruction of LUNA, my colleague Bernd covered this here.

Lessons from LUNA crypto collapse

In a public release, one of the top three crypto research firms provided insights into how a $40 billion project was brought to its knees.

According to the firm, the opportunity painted by the fast-growing cryptocurrency always came with evident risks. However, Delphi admitted that the extent of these risks was not fully understood at the time.

The research team explained two main factors in the undoing of LUNA. These were:

• an unsustainable 20% annual yield on Terraform Labs lending platform, Anchor Protocol; and
• a lack of adequate collateralisation to protect against a ‘bank run’ of sorts.

On the first point, the high yield incentive created an imbalance between depositors and borrowers. This meant the creators of Terra, Terraform Labs, had to front the extra capital to pay out depositors.

At the same time, the lack of collateral posed a risk in the event of mass withdrawals from the Terra ecosystem. Though, Delphi’s nerves were eased when the Luna Foundation Guard (LFG) acquired US$3 billion worth of Bitcoin (CRYPTO: BTC) to protect against this.

Ultimately, the acquired collateral was not enough to insure the US$18 billion worth of funds tied up in the UST stablecoin. This meant a well-constructed attack to exploit this weakness ended up being successful.

Where does Delphi stand now?

Due to the structuring of Delphi Digital, the research firm is unscathed. However, the venture arm made a $10 million investment in LFG in February which is effectively worth zero now.

Fortunately, Delphi was not overexposed to the LUNA crypto, making up only about 13% of net asset value at its peak.

At the time of writing, LUNA is valued at 0.01 cents per token.

The post Crypto venture firm’s lessons after $10 million haircut on LUNA losses appeared first on The Motley Fool Australia.

More reading

• Own crypto or NFTs? Here’s why the ATO could have you in their sights come tax time
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Why Bitcoin and Ethereum popped on Tuesday
• Using Bitcoin to diversify your portfolio? Read this
• Why Shiba Inu is down today

Motley Fool contributor Mitchell Lawler has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Terra and Bitcoin. 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 Hawsons Iron Ltd (ASX: HIO) share price is off to a positive start on Friday following a company update.

At the time of writing, the resource developer’s shares are up 3.28% to 63 cents.

What did Hawsons announce?

In the morning, Hawsons provided investors with a board appointment, pushing its shares higher.

According to its release, Hawsons announced the inclusion of experienced resources industry professional, David Woodall to its board.

Serving as a non-executive chair effective today, Mr Woodall brings a wealth of experience to the role. His knowledge spans across the energy industry in the last 50 years with a focus on both commercial and not-for-profit sectors.

Mr Woodall sat on the boards of Ergon Energy, Energex, Tarong Energy Corporation, Terra Gas Traders, Starfish Windfarm, and others.

He spent many years at Australian mining company MIM, culminating in the role of executive general manager in marketing and commercial.

Mr Woodall also served as the managing director at Grainco Australia, a major bulk agri-commodity marketer and handler.

Furthermore, Mr Woodall has a high level of Chinese skills, having taken up several terms as chair of the Queensland – China Council.

Current executive chair, Bryan Granzien commented:

Dave has been involved with Hawsons for almost 18 months now, most recently as a member of our Advisory Committee appointed earlier this year to provide the Board with strategic advice on the progress and quality of our bankable feasibility study (BFS).

I look forward to working closely with Dave to realise the exciting opportunity for our company and Hawsons Iron Project to be a leading supplier of high-quality magnetite, vital to lowering emissions in ‘green steel’ making.

Mr Granzien will move into the performance-management role of managing director and concentrate on the delivery of the Hawsons Iron Project’s BFS.

Hawsons share price snapshot

Over the last 12 months, Hawsons shares have accelerated by more than 475%.

The company’s share price reached an all-time high of $1.08 per share earlier this month, before retracing to 60 cents.

On valuation grounds, Hawsons has a market capitalisation of around $443.33 million, with almost 715.06 million shares on its registry.

The post Here’s why the Hawsons Iron share price is climbing today appeared first on The Motley Fool Australia.

More reading

• Hawsons Iron share price slumps 9% then rebounds following project update
• Why did the Hawsons Iron share price stage such a stunning comeback today?
• Why did the Hawsons Iron share price plunge more than 23% today?
• Hawsons Iron share price tumbles another 9% on Friday. What’s going on?
• Hawsons Iron share price volatility continues with more wild swings on Wednesday

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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Fortescue Metals Group Limited (ASX: FMG) has some ambitious plans when it comes to green energy.

Namely, the S&P/ASX 200 Index (ASX: XJO) iron ore giant is looking to become the global leader in the production of green hydrogen.

Green hydrogen, if you’re not familiar, comes from splitting water molecules (H20) into their elemental parts. Oxygen and hydrogen. With sustainable energy sources used in the process, it essentially produces zero carbon emissions.

Fortescue Future Industries

Fortescue Future Industries (FFI) is the green energy offshoot of the iron ore business.

FFI has a bold goal of producing 15 million tonnes of green hydrogen annually by 2030. A goal not everyone believes is achievable.

But that’s not stopping chairman and CEO Andrew ‘Twiggy’ Forrest from ploughing ahead.

As the Motley Fool reported, among other ventures, FFI is partnering with Airbus to develop green hydrogen for aircraft. FFI is also investigating setting up future green hydrogen projects in Papua New Guinea and Argentina, potentially opening up vast new regional supply routes.

While all that sounds promising, Fortescue Future Industries hasn’t produced any green hydrogen yet.

Which brings us to…

How soon can FFI start making money from green hydrogen?

Addressing the hydrogen conference in Barcelona, Spain, Forest said he expects FFI will be producing commercial quantities of green hydrogen “inside the next two or three years”.

Earlier this week Twiggy revealed he’s temporarily stepping back in as CEO of Fortescue. The company has as yet failed to find a suitable replacement for outgoing CEO Elizabeth Gaines, who is stepping down in August.

Forest relinquished his role as CEO back in 2011.

Under a new company structure, FFI and Fortescue will each have their own CEOs, both of who will report to the Board.

Forest seems confident with the arrangement, saying (quoted by The Australian):

I’m happy to call myself a Plan B and from a shareholder perspective, the response we’ve had is ‘that’s a bullet proof plan B’. We will be making the appointments and having people join us when their current agreements allow.

As far as the difficult road ahead yet in transitioning to a global green hydrogen producer, he added:

It takes immense courage to pivot your successful business away from that successful business and into also a huge new industry where this has never been done. That’s where we’re breaking new ground. This is raw courage and has to be done on great scale.

How has the ASX 200 iron ore giant been tracking

Up 1.9% in early morning trade, the Fortescue share price is now just about flat for the year.

That compares to a 6% loss posted by the ASX 200.

Fortescue also pays the highest trailing dividend yield amongst ASX 200 miners, currently at 15.3%, fully franked.

The post How soon can Fortescue start making money from green hydrogen? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for Fortescue shares with Twiggy at the helm?
• Fortescue share price pushes higher following leadership changes
• ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles
• Why I think these are the best ASX dividend shares to buy right now
• Fortescue share price on watch after Twiggy returns to top job

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.

What happened

Volatility in the cryptocurrency market continues to make headline news. However, today’s price action has broadly taken a bullish turn this afternoon, with many top tokens moving from the red into the green in afternoon trading 

As of 2:45 p.m. ET, Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and The Sandbox (CRYPTO: SAND) surged 2.2%, 1.1%, and 3.5%, respectively, over the past 24 hours.

This move higher appears to be the result of positive sentiment building around what could be a more constructive environment for crypto. Each of these top tokens has its own catalysts that bulls are relying on to make a buying decision, despite the selling pressure we’ve seen of late.

Recent news that Ethereum and other top cryptocurrencies could be graded as commodities by the Commodity Futures Trading Commission has some investors bullish on Ethereum, relative to other tokens. This megacap token continues to hold much steadier than smaller counterparts, largely due to the view that Ethereum is an asset class in and of itself.

Dogecoin has benefited greatly from the Elon Musk saga with Twitter of late. With the self-proclaimed “Dogefather” set to take the helm (though he’s now fighting this acquisition), there’s something for Dogecoin investors to look forward to. Uncertainty remains around whether the deal will get done, but more discussion around Dogecoin is generally something its bulls view positively.

The Sandbox has seen a number of high-profile brands join its metaverse, with interest seeming to surge in this sector. Should this bullish momentum in the metaverse continue, bulls have reason to like how this token is positioned.

So what

Generally speaking, taking a quick look at what equity markets are doing on a given day is a pretty good predictor of where crypto prices are headed. There’s been historically high correlation between cryptocurrencies and riskier equities such as tech stocks this year. However, the choppiness of the stock market and the volatility we’re seeing in the crypto market today have somewhat diverged.

Much of that appears to be due to the view that there are fundamental reasons to consider various top cryptocurrencies at these levels. Whether it’s Ethereum’s stability or the speculative upside that Dogecoin and The Sandbox provide, these lower token prices could represent intriguing entry points for aggressive investors looking to add risk.

Now what

The real question from here is just how aggressive investors will be. The decision to add risk at a time when there’s little support for risk assets can be a daunting one. Accordingly, perhaps this is just another bear market bounce on a longer-term trend downward. 

Time will tell. Today, investor sentiment appears to be improving. Tomorrow, we’ll see how the market reassesses this rally. 

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

The post Why Ethereum and Dogecoin are recovering nicely today appeared first on The Motley Fool Australia.

More reading

• Own crypto or NFTs? Here’s why the ATO could have you in their sights come tax time
• Why is the Ethereum price down 48% this year?
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Why Bitcoin and Ethereum popped on Tuesday
• Can regulators prevent another US$45 billion crypto stablecoin meltdown?

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum and Twitter. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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 MyDeal.com.au Ltd (ASX: MYD) share price is launching upwards this morning after Woolworths Group Ltd (ASX: WOW) offered to buy most of the online marketplace’s shares at a 63% premium.

The supermarket giant tabled a proposal to buy 80.2% of MyDeal shares for $1.05 apiece.

The MyDeal share price closed Thursday’s session trading at 65 cents.

At the time of writing, it has surged to reach $1, representing a 55.81% gain.

Let’s take a closer look at the takeover proposition boosting the online retailer’s stock today.

Woolworths proposes MyDeal takeover

The MyDeal share price is leaping on Friday after S&P/ASX 200 Index (ASX: XJO) giant Woolworths offered to snap up most of the company’s stock for $1.05 per share.

Woolworths’ offer values MyDeal’s equity at $271.8 million and implies an enterprise value of $242.6 million.

It will also provide investors who got in on the online marketplace provider’s 2020 initial public offering (IPO) – wherein shares were offered for $1 – a 5% gain on their investment.

The MyDeal board are recommending shareholders vote in favour of the proposition. That is, unless a better offer comes along or an independent expert rules it’s not in shareholders’ best interests.

Investors representing around 76% of the company’s stock have voiced their intent to vote in favour of Woolworths’ takeover. That includes CEO Sean Senvirtne, who currently holds a 47.3% stake in MyDeal.

All the takeover goes to plan, Senvirtne will sell 60% of his holding and walk away with an 18.9% stake.

MyDeal chief product officer Kate Dockery and chief merchandising officer Dean Ramler will also retain stakes of 0.5% and 0.4% respectively.  

Senvirtne commented on the news driving the MyDeal share price sky high today, saying:

[The acquisition] will help support the growth of our retail platform by accessing Woolworths Group’s capabilities across e-commerce, supply chain, retail, loyalty and more.

The companies expect shareholders to vote on the transaction next quarter with MyDeal earmarked to be delisted after its implementation.

MyDeal share price snapshot

Today’s gains have boosted the MyDeal share price back into the long-term green.

It is now trading 34% higher than it was at the start of 2022. It’s also nearly 83% higher than this time last year.

The online retailer listed at the height of the COVID-19 online shopping boom. Its highest-ever close – at $1.71 – came on the evening following its float. The stock is currently trading 41% lower than that point.

The post Here’s why the MyDeal share price is rocketing 56% today appeared first on The Motley Fool Australia.

More reading

• Woolworths share price in focus on MyDeal acquisition proposal
• Why is the Woolworths share price sliding 7% today?
• Own Woolworths shares? The company’s about to hit a major sustainability milestone
• Why I think Coles is a better ASX dividend share than Woolworths
• Is the Telstra share price cheap compared to other ASX 200 shares?

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 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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I believe Altium Limited (ASX: ALU) shares could be worth holding onto for the long term at the software provider’s current share price of $28.19.

Businesses that are growing profit and are expecting long-term growth are contenders to deliver good compounding over time.

Altium is one of the world leaders in the electronic PCB software design space.

I think the company could be good to keep hold of for the below three reasons:

Growth of electronic devices

Altium points out that electronics are at the heart of all intelligent systems and printed circuit boards are central to the design and realisation of electronics and smart connected products. For example, electronics are responsible for 40% of a new car’s total cost, according to Altium.

Management says the electronic industry is ripe for disruption and that “Altium is well-positioned to disrupt the way electronic products are designed and manufactured”.

It’s estimated that the number of active ‘internet of things’ devices will surpass 25.4 billion in 2030. The company says this is one of the trends that is driving Altium’s growth. In my opinion, this could be a useful boost for Altium shares over the long term.

Altium claims to have the best PCB design tools and cloud platform for the electronics industry with “deep user-centricity and a proven ability to ‘out-innovate’ the competition.”

Rising profitability

In the FY22 half-year result, the company saw its revenue rise by 28%. Altium’s net profit after tax (NPAT) increased by 37.7% over the period to US$22.9 million.

The business saw its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) margin improve from 30.6% in the prior corresponding period to 34.1% in HY22.

Altium is expecting its underlying EBITDA margin in FY22 to be between 34% and 36%. By FY25 or FY26, it is expecting the underlying EBITDA margin to grow to between 38% and 40%.

By FY25 or FY26, Altium is also expecting it will have at least US$500 million of revenue and 100,000 subscribers. It’s thought by management that 95% of revenue will be recurring by FY25 or FY26.

As profit margins increase, it means that more of the new Altium revenue can turn into net profit for the business. I think that could make Altium shares more attractive.

The company’s ongoing levels of profitability also mean the earnings generated can be used to strengthen the balance sheet and pay shareholders growing dividends.

Strong balance sheet and cashflow

At the end of December 2021, Altium had US$195 million of cash. This was partly due to the US$33.3 million of operating cash flow the ASX tech share generated in the first six months of FY22. That operating cash flow figure of US$33.3 million was 78% higher than the prior corresponding period.

Altium can use that cash to invest in more growth, make acquisitions, and pay larger dividends. I think all of these could be good for shareholders.

In the HY22 result, the Altium board decided to increase the interim dividend by 10.5% to 21 cents per share.

One of the features of the Altium balance sheet is that it has no debt. I think that puts Altium in a good position in a world where the cost of debt is rising.

Final thoughts

I think Altium is a quality business with very effective leadership. It has compelling financial metrics, a positive future, and useful tailwinds. That’s why I’m holding it in my portfolio for the long term.

The post 3 reasons to own Altium shares for the long term appeared first on The Motley Fool Australia.

More reading

• You won’t find more profitable ASX tech shares than these companies right now
• Who wants to be a millionaire? If only you’d invested $10,000 in these ASX shares 10 years ago
• Why are ASX 200 tech shares having such a stellar start to the week?
• Analysts name 2 ASX shares to buy with ~50% upside potential
• ASX 200 midday update: Block and Xero rebound, gold miners fall

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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 APA Group (ASX: APA) share price is currently up more than 1% amid news that the gas and energy infrastructure business is a possible takeover target.

APA owns an extensive 15,000km gas pipeline in Australia which connects sources of supply and markets across mainland Australia. It operates and maintains networks that connect 1.4 million Australian homes and businesses to the benefits of natural gas. It delivers half of the nation’s natural gas usage.

Takeover speculation

According to reporting by The Australian, APA is being looked at by at least one potential buyer, according to the newspaper’s sources.

How close is a takeover bid? The newspaper reported that a party hasn’t yet made an approach to the APA board, but “the talk” is that there is at least one prospective buyer thinks it would be “better placed to oversee an energy transition of the business away from gas.”

It would be a hefty takeover if it were to go ahead. The APA market capitalisation is $13.7 billion according to the ASX, before today’s APA share price movement.

However, it was pointed out that plenty of the potential investors may not be interested in buying APA because of the fact that it has gas-related assets – many funds would prefer targets that are more environmentally friendly.

Potential buyer

The Australian named US investor Global Investment Partners as one fund that “could buy the business”. It has already shown interest in Australian assets after buying a stake in the Woodside Petroleum Limited (ASX: WPL) Western Australian Pluto Train 2 project for around $4 billion.

Some of GIP’s assets around the world are gas pipelines, so APA’s assets could make sense for its asset base.

APA is also on the hunt

Despite the volatility that the global economy is seeing with inflation and rising interest rates, APA is also reportedly interested in making its own deals.

The Australian reported that APA is looking at a $4 billion electricity transmission business in the US, the Basslink power cable, Renewable Energy Zones and CWP Renewables in Australia.

Previously, the company had also been looking at gas opportunities including the Chesapeake Utilities Corporation (NYSE: CPK), according to the newspaper.

What next for the APA share price?

APA has recently given investor presentations showing how decarbonisation and the rise of new energy technologies is creating opportunities in electricity transmission and renewable energy microgrids. However, it notes that gas still has a “critical” role to play.

The business is looking at converting (some of) its pipelines to carry hydrogen. It could also carry a blend of hydrogen and natural gas.

In a few months, APA will release its FY22 result and it’s expected to pay its FY22 final distribution.

The APA share price has risen around 15% since the start of 2022.

The post APA share price rises amid takeover rumours appeared first on The Motley Fool Australia.

More reading

• I like APA as an ASX dividend share idea. Here’s why
• Own APA shares? Here’s the latest on the company’s ‘ground breaking’ green hydrogen project
• 2 ASX dividend shares that keep giving investors pay rises
• Here’s why the APA share price is in the green today
• How big is the APA dividend yield going to be in 2022?

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 positions in and has recommended APA Group. 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 Australian Vanadium Ltd (ASX: AVL) share price has returned from its trading halt and tumbled deep into the red.

At the time of writing, the vanadium developer’s shares are down 17% to 4.7 cents.

Why is the Australian Vanadium share price sinking?

The catalyst for the weakness in the Australian Vanadium share price on Friday has been the completion of the company’s equity raising.

According to the release, the company has received firm commitments from existing and new institutional, professional, and sophisticated investors to raise $20 million before costs.

Australian Vanadium is raising the funds through the issue of approximately 425.5 million new shares at a 17% discount of 4.7 cents per share.

The company will now seek to raise a further $7.5 million via a share purchase plan (SPP). These funds will be raised at the same price as the placement.

Though, given the weakness in the Australian Vanadium share price today, it’s unclear how many shareholders will take part given they could just buy shares on-market at the same price.

Why is Australian Vanadium raising funds?

The release explains that the funds raised under the placement and SPP will be used to finance ongoing work at the company’s Australian Vanadium Project. Proceeds will also be used to develop key downstream markets ahead of finalising debt financing and a final investment decision.

Australian Vanadium’s Managing Director, Vincent Algar, commented:

We are extremely pleased with the overwhelming support we have received for this capital raising. The capital raising saw new institutional and sophisticated investors join the register, as well as receiving strong participation from AVL’s existing shareholders.

We are also pleased to provide an opportunity for our valued retail investors to participate in the capital raising through the offer of the SPP. The funds raised through the Placement and the SPP will ensure that the Company remains well funded while we implement the next phases of the development program for the Australian Vanadium Project.

The post Why is the Australian Vanadium share price crashing 17% today? appeared first on The Motley Fool Australia.

More reading

• Why has the Australian Vanadium share price crashed 31% in a month?
• 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them)

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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