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The Bitcoin (CRYPTO: BTC) price fell hard overnight, down more than 7% at one point.

At the time of writing, one Bitcoin is worth US$39,546 (AU$53,221), down 6% from this time yesterday.

And it’s not just the Bitcoin price that’s sliding.

Ethereum (CRYPTO: ETH), the world’s No. 2 crypto by market cap, is down 7% over the past 24 hours, currently trading for US$2,986.

Those losses now see both the Bitcoin price and Ethereum down more than 15% over the past week.

So, what’s going on?

Why is the Bitcoin price tumbling?

The Bitcoin price – indeed, almost the entirety of the crypto market, save stablecoins – is taking a thrashing alongside global risk assets.

The tech-heavy Nasdaq Composite (NASDAQ: .IXIC), as one example, fell 2.2% yesterday (overnight Aussie time), taking its five-day losses to 7.2%.

Commenting on Bitcoin’s recent woes, eToro’s market analyst and crypto expert Simon Peters said:

The moves down underpin what has emerged as a significant trend in 2022 – that cryptoassets don’t appear immune to rate hike environments. Moving to a similar beat to traditional stock markets such as the Nasdaq 100, crypto appears to be struggling under an increasing rate environment.

Teong Hng, CEO of Satori Research, pointed to hawkish moves by the world’s most-watched central bank, the US Federal Reserve, throwing up headwinds for cryptos and the Bitcoin price.

According to Teong (quoted by Bloomberg): “Fed tightening by 0.5 percentage point steps at upcoming meetings as well as $95 billion per month balance sheet run-off sent crypto markets spiraling lower.”

Addressing why most of the altcoins (which are any tokens aside from Bitcoin) are down significantly more than the Bitcoin price, Josh Olszewicz, head of research at crypto investment firm Valkyrie, added: “Historically, altcoins have a tendency to overperform bitcoin to the downside in strong bearish trading environments. Altcoin trading participants often have less longer-term conviction.”

What can turn things around?

Crypto investors had been hoping that the Bitcoin 2022 conference in the US state of Florida last week would help boost the Bitcoin price.

But that didn’t eventuate.

“The Bitcoin 2022 conference held in Miami last week saw a slew of pronouncements on the crypto asset and the space more broadly, but unlike in past years, nothing of serious note seems to have buoyed the price this time around,” Peters said.

If you’re looking for a signal as to when the Bitcoin price might run hot again, Antoni Trenchev, managing partner of crypto lender Nexo, says to keep an eye on the US$45,000 level.

According to Trenchev (quoted by Bloomberg): “The Nasdaq 100 closed below its 50-day moving average on Friday, so now wouldn’t be a bad time for Bitcoin to break its correlation with the tech-laden index. Close above $45,000 again and we’re back in the game.”

The post Here’s why the Bitcoin price is falling hard today appeared first on The Motley Fool Australia.

More reading

• Why Ethereum and Dogecoin are down today
• Missed out on Ethereum? Here’s what to consider buying instead
• Fancy buying a Porsche with Bitcoin or Ethereum? Here’s how you can
• Why Bitcoin, Ethereum, and Dogecoin are singing the blues today
• Bitcoin price tumbles overnight. What can crypto investors expect next in 2022?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. 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 Bruce Jackson.

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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

After a decent rally in recent months, the crypto market is coming off a tough weekend as macro concerns continue to spark fear in the broader market.

Over the last 24 hours, the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), traded more than 4% lower as of 11:05 a.m. ET. The price of the world’s second-largest cryptocurrency, Ethereum (CRYPTO: ETH), traded nearly 6.6% lower and the price of Dogecoin (CRYPTO: DOGE) traded nearly 10% down. Dogecoin is also dealing with the evolving situation regarding Tesla founder Elon Musk and his position at Twitter.

So what

Bond yields continued to rise this morning as investors mulled the macro outlook, which is being impacted by several factors including rising inflation, Russia’s ongoing invasion of Ukraine, and the Federal Reserve’s monetary plans.

The yield on the closely-watched US 10-year Treasury bill rose to around 2.75%. We now know the Fed is planning to raise its benchmark overnight lending rate, the federal funds rate, numerous times this year and also begin shrinking its massive balance sheet by as much as $95 billion per month later this year. The Fed may also raise the federal funds rate by a half a percentage point all at once this year, a deviation from its normal 0.25% rate hikes.

“Bitcoin is down again as institutional investors grow nervous over the upcoming pace of tightening by the Fed,” Edward Moya, an analyst at Oanda, told Barron’s. “Bitcoin’s cage is the $38,000 to $48,000 range and that could hold over the next week or two.”

“Bitcoin and Ether are highly correlated to the Nasdaq-100. If the NDX tanks, it will take crypto down with it,” Arthur Hayes, co-founder of BitMEX, wrote in a blog post yesterday.

In addition to the volatile markets, Dogecoin is dealing with its own set of issues related to Musk and Twitter. Securities and Exchange Commission (SEC) filings last week revealed that Musk had taken a 9.2% stake in Twitter. It was also announced that Musk, who has been critical of the social media giant over free speech issues, would join Twitter’s board of directors. The news sparked a rally in Dogecoin. But over the weekend, Musk told Twitter he had decided not to join the board, throwing into question what kind of role Musk might play in the company’s future.

Many believed Musk joining Twitter’s board was not only good for the company, but also for Dogecoin, one of three cryptocurrencies Musk owns and has been very vocal about. Recently, Musk suggested users should be able to pay for Twitter’s new subscription service with Dogecoin.

But with Musk opting not to join the board, his role at Twitter may end up being a lot less supportive and influential than people thought initially following the announcement he would join the board.

Now what

I think macro headwinds are going to continue to impact the broader crypto market. Especially with inflation so high and the Fed likely pulling liquidity out of the market, there could be less room and appetite for the speculative crypto market.

That said, cryptocurrencies have wedged their way into the traditional financial system and all over the world, so I continue to view the most influential and useful cryptocurrencies like Bitcoin and Ethereum as long-term buys.

I am less bullish on meme-inspired ones like Dogecoin, but with influential people like Musk behind it and already a large market cap, you never know. I just don’t see any technical or fundamental reason to invest in the token.

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

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

More reading

• Here’s why the Bitcoin price is falling hard today
• Why Tesla stock keeps falling
• Missed out on Ethereum? Here’s what to consider buying instead
• Why Dogecoin is soaring today
• Fancy buying a Porsche with Bitcoin or Ethereum? Here’s how you can

Bram Berkowitz owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin, Ethereum, Tesla, and Twitter. 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 Bruce Jackson.

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

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The Seven Group Holdings Ltd (ASX: SVW) share price is heading south on Tuesday as it trades ex-dividend.

At the time of writing, the investment company’s shares are swapping hands for $20.64, down 1.39%.

Below we take a closer look at Seven Group’s latest dividend and when shareholders can expect payment.

Shareholders set eyes on the Seven Group interim dividend

Following the company’s half year results, investors are eyeing Seven Group shares as they trade ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor did not buy Seven Group shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can shareholders expect to be paid?

For those eligible for Seven Group’s interim dividend, shareholders will receive a payment of 23 cents per share on 6 May. The dividend is fully franked which means investors will receive tax credits to go toward their next tax bill.

The board opted to maintain the interim dividend to possibly preserve cash for investment opportunities.

Seven Group share price summary

Since the beginning of 2022, Seven Group shares are around 4.4% in the red.

The company’s shares reached a 52-week high of $24.55 in August 2021, before plummeting over the following weeks. From there, its shares have continued to move in circles.

Based on today’s price, Seven Group commands a market capitalisation of roughly $7.5 billion and has a trailing dividend yield of 2.23%.

The post Why is the Seven Group share price sliding today? appeared first on The Motley Fool Australia.

More reading

• If you’re keen to bag the Seven Group dividend, read this
• This lagging ASX sector could be next to outperform
• Here’s a look at some ASX shares with ex-dividend dates coming up in April
• Is this the secret behind ASX shares that outperform?

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 Bruce Jackson.

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The Lynas Rare Earths Ltd (ASX: LYC) share price is back in view on Tuesday. This follows the release of the company’s quarterly report for the period ending 31 March 2022.

Following the opening bell, shares in the rare earths producer are up 0.5% to $9.88. Prior to this morning, the Lynas share price had tumbled nearly 15% over the past five trading sessions.

Record numbers bring home the bacon for the Lynas share price

• Record quarterly sales revenue up 61.7% year on year to $327.7 million
• Sales receipts up 73.5% to $262 million
• Total rare-earth-oxide (REO) production increased to 4,945 tonnes, up 17.5%
• Record Neodymium-Praseodymium (NdPr) production of 1,687 tonnes, up 24.1%
• Average selling price of $64.7 per kilogram, compared to $35.5 per kilogram
• Closing cash and short-term deposits of $768.4 million, up from $674.2 million

What else happened during the quarter?

Pushing through the challenges posed by COVID-19 and logistics issues, Lynas Rare Earths solidified another record result in its third quarter of FY22.

According to the quarterly report, solid growth in the rare earths market (particularly in sintered Neodymium iron boron) helped push increased sales for Lynas’ LdPr products. In turn, investors are bidding up the Lynas share price today.

The mining company was able to meet this elevated demand by ramping up production. Notably, March witnessed the first time Lynas surpassed 600 tonnes in NdPr production since the beginning of the pandemic.

Furthermore, construction of the Kalgoorlie Rare Earth Processing Facility commenced during the quarter after the company received all the necessary approvals under the Environmental Protection Act.

On an operational level, Lynas’ Mt Weld site continued to undergo debottlenecking initiatives throughout the quarter. The purpose of these activities is to be prepared for higher production rates at Lynas Malaysia.

Importantly, the miner revealed to the market on 1 March that it had discovered rare earth element mineralisation below the current Mt Weld pit. Although, the Lynas share price sank over the proceeding days.

What’s next?

The company’s 2025 projects are a predominant focus for the rare earths producer. With the Kalgoorlie project progressing, the focus may turn towards Lynas’ other 2025 projects. This includes the Unites States Rare Earths Separation Facility.

Currently, Lynas is in the planning phase for this proposed project. From here, the Department of Defence and Lynas have moved forward to detailed discussions on future phases.

Lynas share price snapshot

While the price for rare earth elements has continued to climb this year, the exuberance hasn’t translated into a better share price for Lynas. In fact, shares are down nearly 11% since the beginning of the year.

Though, on a longer time scale, it begins to look more positive. In the past year, shares in the company have gained 57%. Comparatively, the S&P/ASX 200 Index (ASX: XJO) is up only 7% during that time.

The post Lynas share price lifts amid record quarterly result appeared first on The Motley Fool Australia.

More reading

• The Lynas share price has rocketed 50% in six months. Can it keep rising?
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• Why is the Lynas share price backtracking 5% today?
• Why A2 Milk, IGO, Lynas, and Sayona shares are dropping
• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps

Motley Fool contributor Mitchell Lawler owns Lynas Corporation Limited. 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 Bruce Jackson.

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The Woolworths Group Ltd (ASX: WOW) share price is wobbling this morning amid news legal actions brought against the supermarket giant and its peer could fuse into a mammoth case.

The Federal Court flagged the two actions brought against Woolworths relating to the underpayment of 19,000 employees might be heard alongside two similar actions made against Coles Group Ltd (ASX: COL).  

At the time of writing, the Woolworths share price is $38.08, 0.37% lower than its previous close. However, it jumped into the green at $38.29 at market open.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.08%, while the supermarket’s home sector – the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) – is slipping 0.09%.

Let’s take a closer look at what two of Australia’s iconic supermarkets could soon face in court.

Could this be impacting Woolworths’ stock today?

The Woolworths share price has been up and down in early trading amid reports two cases brought against the ASX 200 supermarket giant could be merged with two brought against Coles.

The Fair Work Ombudsmen launched its case against Woolies last year after the supermarket admitted to underpaying 19,000 employees by more than $570 million between 2015 and 2019. Woolies is also facing a class action on similar grounds.

That places it in a similar position to Coles, which is facing action from the ombudsmen in relation to the underpayment of 8,767 employees, as well as a class action.  

Now, the four cases could be merged into one. The trial — in whatever mode is later determined — is set to kick off in June 2023 and run for seven weeks.

The decision was handed down by Federal Court judge Nye Perram on Friday, hitting headlines after the market closed on Monday.

Justice Perram noted that, while the four actions overlap, they aren’t identical.

They can be divided into three issues –  tier 1, tier 2, and tier 3.

Tier 1 issues cover questions of law regarding the interpretation of the General Retail Industry Award, the Fair Work Act, and employment contracts.

Tier 2 issues are those within which questions of law mix with questions of fact. For instance, the position of salaried employees.

Finally, tier 3 issues are concerned with facts only. One example is if particular employees did, in fact, work the role they were employed for.

 In his decision, Justice Perram wrote:

The issues in all four proceedings substantially overlap in relation to tiers 1 and 2. This suggests that they should be heard together in some fashion in relation to those issues. 

I do not think enough is presently known to determine just how they should be heard. This will not become clear for some time.

Woolworths share price snapshot

This year has been rough so far for the Woolworths share price, but its performance is still besting the broader market.

It has slumped 0.9% year to date. Though, it has gained around 10% since this time last year.

For comparison, the ASX 200 has slipped 1.5% in 2022 and has risen 7% over the last 12 months.

The post What’s impacting the Woolworths share price on Tuesday? appeared first on The Motley Fool Australia.

More reading

• Price check: Why did the Woolworths share price push 5% higher in March?
• ASX market beater? Here’s how Coles shares performed during March
• Are Woolworths shares positioned for ‘a long-term, post-COVID trend?’
• Are Woolworths shares worth buying for their defensive properties?
• What’s the outlook for the Woolworths share price in April?

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 owns and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Pendal Group Ltd (ASX: PDL) share price is falling on Tuesday.

In morning trade, the fund manager’s shares are down 2.5% to $5.16.

Why is the Pendal share price falling?

The Pendal share price is under pressure this morning after the company rejected a takeover proposal from rival Perpetual Limited (ASX: PPT).

And while the fund manager has tried to soften the blow by announcing a share buyback, it hasn’t been enough for some investors to stick around.

According to the release, Pendal believes the indicative proposal of 1 Perpetual share for every 7.5 Pendal shares plus $1.67 cash per share “significantly undervalues the current and future value of Pendal.”

In light of this, the Pendal Board unanimously determined that the proposal is not in the best interests of shareholders.

It highlights that Pendal has some of the most respected investment talent in the world, with a track record of delivering superior long term performance. It also notes that it has a compelling global distribution footprint across the UK, Europe, the US and Australia, which it feels is not adequately recognised in the indicative proposal.

Furthermore, the Pendal Board points out that the proposal represents only a 0.3% premium to the 180-day volume weighted average price of the Pendal share price up to 1 April 2022 and is materially below Pendal’s underlying standalone value.

Share buyback

Lending some support to the Pendal share price today is news that the company intends to undertake a share buyback.

According to a separate release, the company plans to commence an on-market share buy-back of up to $100 million following the release of its interim results on 10 May 2022.

Pendal is making the move due to being a strong cash generating business with a solid balance sheet, which it notes provides significant flexibility to pursue both growth and capital management initiatives for the benefit of shareholders.

The Board determined that an on-market buy-back is the most efficient way to deliver an earnings per share accretive return of capital, while still maintaining flexibility to fund future growth initiatives and Pendal’s dividend policy.

Funds under management (FUM) update

Finally, Pendal also released an update which revealed that its FUM stood at $124.9 billion at the end of the March quarter.

While this was down from $135.7 billion since the end of December, management was pleased given the volatile markets.

Pendal’s CEO, Nick Good, said: “This quarter we are pleased to have seen a significant improvement in flows despite weak and volatile markets that have impacted overall fund levels.”

The post Pendal share price falls amid Perpetual takeover rejection: What now? appeared first on The Motley Fool Australia.

More reading

• These were the best performers on the ASX 200 last week
• Pendal (ASX:PDL) share price in the spotlight as analysts tip higher takeover bid
• Why Allkem, Iluka, Pendal, and Sayona Mining shares are charging higher
• Why Air NZ, Bank of Queensland, Domain, and Perpetual shares are dropping
• Perpetual (ASX:PPT) share price halted amid Pendal takeover bid

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 Bruce Jackson.

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The Iress Ltd (ASX: IRE) share price is on the move on Tuesday morning.

In early trade, the financial technology company’s shares are up 1.5% to $11.78.

Why is the Iress share price pushing higher?

Investors have been bidding the Iress share price higher today following an update on a planned divestment.

According to the release, the company has decided against divesting its UK Mortgages business.

Last year, as part of a Board-led strategy review, Iress decided that it would explore potential opportunities to divest its Mortgages business. This decision reflected the potential to achieve higher returns under new ownership, as well as providing the company with an opportunity to redeploy the anticipated sale proceeds to enhance returns to shareholders.

However, after a thorough and well considered process, the company has had a change of heart and now believes the best outcome for shareholders and clients is to retain the business. Particularly given declining technology valuations.

Iress’ Chief Executive, Andrew Walsh, commented: “The Mortgages business continues to perform strongly, contributing £16.1m of revenue and £6.4m of NPAT in 2021. In recent months, Mortgages has increased its pipeline of opportunities as lenders demand greater scale, efficiency and automation in mortgage processing.”

“During the sale process, global market volatility increased and technology company valuations declined. It became evident that purchasers’ valuations were likely to be below levels that represent a reasonable return to Iress’ shareholders. As a result, the Board has decided to cease the divestment process and retain the business,” Walsh added.

Guidance update

Iress also took this opportunity to advise that its guidance for FY 2022 remains unchanged.

It continues to expect:

• Segment profit growth of 7% to 10%
• Underlying net profit after tax growth of 25% to 37%
• Underlying earnings per share of 40 cents per share to 44 cents per share in constant currency

Management also revealed that it has upgraded its FY 2025 growth target (including Mortgages) to net profit after tax of $120 million to $135 million. This will be a big increase on the net profit of $73.8 million recorded in FY 2021.

The post Why is the Iress share price pushing higher today? appeared first on The Motley Fool Australia.

More reading

• 2 defensive ASX dividend shares for long-term income
• Why Tesla stock keeps falling
• All that glitters isn’t gold: Here are the worst performing ASX mining shares of the quarter
• Lithium watch: Broker tips Lake Resources share price to rocket 42% higher
• Here’s a look at the laggards from ASX tech shares last quarter

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 Bruce Jackson.

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In this period of uncertainty and volatility, it would be understandable for some investors to be looking for defensive ASX dividend shares.

These are companies that have been providing shareholders with consistently growing dividends for a number of years.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Pattinson is one of the oldest businesses on the ASX, having been listed in 1903.

It operates as an investment house, meaning it has a portfolio of various assets in different sectors. Soul Pattinson says its investment approach is “focused on investing in resilient businesses with good long-term prospects and excellent management”.

The ASX dividend share has a portfolio of large caps and a portfolio of small caps, as well as large positions and private equity investments. In terms of key sectors, it’s invested in telecommunications, building products, property, agriculture, resources, and financial services.

Three of its largest investments include Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), and New Hope Corporation Limited (ASX: NHC).

Some of its other sizeable investments include Tuas Ltd (ASX: TUA), Pengana Capital Group Ltd (ASX: PCG), Apex Healthcare, Round Oak Metals, Ampcontrol, Ironbark, and Aquatic Achievers.

One of Soul Pattinson’s main aims for shareholders is to grow the dividend. It has increased its annual dividend every year since 2000.

When the company released its FY22 half-year result, Soul Pattinson Chair Robert Millner said:

The outlook for cash generation looks strong and has enabled the board to increase the interim dividend consistent with its policy objective of steadily growing dividends.

WHSP is the only company in the All Ordinaries Index (ASX: XAO) to have increased its dividend every year for more than 20 years.

The company lifted its interim dividend by 11% to 29 cents a share in its latest report. It currently has a grossed-up dividend yield of 3.25%.

Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is a large pathology business with operations in countries including Australia, Germany, the US, and New Zealand. Additionally, Sonic Imaging Australia is the second-largest radiology provider in Australia.

This ASX dividend share has a stated progressive dividend policy. It has grown its dividend every year for the past decade with steady organic growth and acquisitions.

Profit has been boosted over the last two years with COVID-19 testing. It has processed millions of tests. Sonic has used some of this money to make earnings-accretive acquisitions such as Canberra Imaging.

The company expects a sustainable level of COVID-19 testing into the future, including routine testing, screening programs, variant testing, whole genome sequencing, and antibody tests.

In the latest result, which was for the six months to 31 December 2021, the ASX dividend share grew its interim dividend by 11% to 40 cents per share.

At a franking rate of 100%, Sonic Healthcare has a grossed-up dividend yield of 3.9%.

The post 2 defensive ASX dividend shares for long-term income appeared first on The Motley Fool Australia.

More reading

• Top ASX dividend shares to buy in April 2022
• Why has the Washington H. Soul Pattinson share price leapt 13% in 3 weeks?
• These are 2 of the most diversified ASX 200 shares
• 3 reasons why the Sonic Healthcare (ASX:SHL) share price could be an opportunity
• Top ASX shares to buy in April 2022

Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited and TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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

For the second trading day in a row, Tesla (NASDAQ: TSLA) stock drove lower on Monday, down 3.7% as of 10:50 a.m. ET.

You can blame China for that. 

So what

Tesla’s problems in China began about a month ago, when a resurgent coronavirus forced the local government to declare a quarantine in Shanghai, where Tesla’s Chinese gigafactory is located. In cooperation with the quarantine, Tesla shut down production at its Shanghai plant, then reopened, then shut down again at the end of the month.

That second shutdown has now continued for more than two straight weeks, as Reuters confirms today. As a result of the shutdown, Tesla ended up with basically flat production numbers between February and March, and March’s tally of 55,462 electric cars assembled was down 18.5% from January’s 68,117. 

Now what

Now here’s why this is important to Tesla investors — and why it may provide a glimpse of what may happen next.

According to Reuters, “Chinese buyers have rushed to place orders, worried that Tesla may raise prices further after announcing price hikes in November and March due to the higher costs of raw materials.” So if and when the Shanghai plant opens back up, you can expect backlogged orders to quickly be filled, producing a boom in Tesla production and deliveries — perhaps as early as this later this month.

However, if buyers are largely buying in order to front-run anticipated price hikes, then those orders, that production, and those deliveries will most likely pull forward sales of electric cars that would otherwise have happened in May or later.

Result: You can expect to see Tesla’s Chinese numbers improve once the Shanghai lockdowns go away — but then probably fall again shortly afterward. This is going to make it hard for longer-term investors to discern any particular trend in Tesla’s China sales.

As always, caveat investor. 

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

The post Why Tesla stock keeps falling appeared first on The Motley Fool Australia.

More reading

• Why Tesla shares rose 24% last month
• Why cryptos like Bitcoin are ‘no longer in the fringes’
• Why are ASX tech shares having such a stellar day?
• Should you buy fractional shares of Tesla before the potential stock split?
• Should investors worry about Tesla’s Q1 deliveries miss?

Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. 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 Bruce Jackson.

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

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ASX mining shares were the star performers last quarter, with the basket coming clearly out on top.

The S&P/ASX 300 Metal & Mining Index (ASX: XMM) gained 14.7% between December 31 and March 31. The S&P/ASX 200 Materials Index (ASX: XMJ) also rose by 11.9% during the period. In contrast, the broader S&P/ASX 200 Index (ASX: XJO) edged just 0.74% higher.

While some names flourished and kept the sector easily afloat, it wasn’t bonanza shareholder returns for everyone involved.

Here are the laggards of the mining sector for the three months of trade to 31 March 2022.

Underperforming ASX mining shares last quarter

We’ll talk in terms of percentage change for the quarter, as the list differs when talking in terms of points and dollars.

Taking out the top spot for ASX mining laggards is Australian Strategic Materials (ASX: ASM), which slid 28.8% for the three months. This was followed closely by Chalice Mining Ltd (ASX: CHN) with a 26.3% loss.

Perenti Global Ltd claimed third spot, falling 19.35%.

Perhaps surprisingly, nickel player Nickel Mines Ltd (ASX: NIC) saw an 11.9% down-step too. Even as nickel prices surged to record heights in the quarter, the company’s relationship with a large nickel supplier and trader had the market nervous about the stock.

Not all the laggards were in the red, however. Further down the list are shares such as Alumina Limited (ASX: AWC) with a 7.5% gain. That’s not bad, but not great compared to the other winners.

One of the larger ASX mining shares, Pilbara Minerals Ltd (ASX: PLS), finished flat for the quarter.

Below are the top 10 underperforming ASX mining shares for the March quarter in table form.

Ticker	Company Name	Quarterly return (%)
ASM	Australian Strategic Materials	-28.8
CHN	Chalice Mining Ltd	-26.35
PRN	Perenti Global Ltd	-19.35
RSG	Resolute Mining Limited	-15.38
INR	Ioneer Ltd	-13.75
SFR	Sandfire Resources Ltd	-13.68
NIC	Nickel Mines Ltd	-11.89
RMS	Ramelius Resources Limited	-8.28
IMD	Imdex Limited	-8.14

The post All that glitters isn’t gold: Here are the worst performing ASX mining shares of the quarter appeared first on The Motley Fool Australia.

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• ASX 200 midday update: IGO increases Western Areas offer, BlueScope makes US acquisition
• Pilbara Minerals share price higher on lithium conversion facility update

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Imdex Limited. The Motley Fool Australia owns and has recommended Imdex Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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