Tag: Motley Fool

The Insurance Australia Group Ltd (ASX: IAG) share price was on form on Wednesday.

The insurance giant’s shares ended the day almost 3% higher at $4.48.

However, despite this gain, the IAG share price is still down a disappointing 5% in 2021.

Is the IAG share price in the buy zone?

While the IAG share price performance this year has been disappointing, analysts at Morgans appear to believe this could be a buying opportunity.

In response to the company’s strategy update this week, the broker has put an add rating and $5.31 price target on its shares.

Based on the current IAG share price, this implies potential upside of 18.5% over the next 12 months. And with Morgans forecasting an 18.2 cents per share dividend in FY 2022, this 4% yield stretches the total potential return to 22.5%.

What did the broker say?

Morgans appears pleased that IAG held firm with its medium term targets at its strategy event.

The broker commented: “IAG has held a business update focusing on its 5 year strategy. Medium term targets remain unchanged, e.g. targeting a cash ROE of 12%-13%, an insurance margin of 15%-17% and a growth profile. IAG’s FY22 guidance for a 10%-12% reported insurance margin and low single-digit GWP growth was also re-affirmed.”

And while Morgans has a few nagging doubts, it was largely pleased with its strategy.

It explained: “IAG’s overall strategy sounds logical, although history shows it is one thing improving margins in IIA and another thing being able to maintain them. We are probably most sceptical on whether IAG can grow customer numbers by 1m over 5 years as planned, noting IAG has been losing share in personal lines in recent times. However, positively, it does appear that IAG has already made a significant start on executing its plans in FY22.”

Overall, the broker believes the IAG share price is cheap for patient investors.

Morgans concluded: “We believe for the patient investor the stock is cheap trading on ~13x FY23F earnings, and we expect continuing insurance price increases, combined with management’s strategy to improve performance, to drive improved profitability over time. ADD maintained.”

The post Why the IAG (ASX:IAG) share price could be cheap for patient investors appeared first on The Motley Fool Australia.

More reading

• IAG (ASX:IAG) share price on watch following trading update
• What happened to the IAG (ASX:IAG) share price last month?
• Own IAG (ASX: IAG) shares? Here’s why the company is facing a shareholder class action
• With the IAG (ASX:IAG) share price trading around decade-lows, is now the time to buy?
• November hasn’t been a great month so far for the IAG (ASX:IAG) share price

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 owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/31D5ESC

The KGL Resources Ltd (ASX: KGL) share price soared 34% after the company revealed record copper results.

Shares in the mineral exploration company were swapping hands at 64.5 cents at market close, up 34.38%.

KGL Resources is focused on exploring and developing the Jervois Base Metal Project in the Northern Territory.

Record results

In today’s announcement, KGL Resources reported a mammoth assay of 61.4% copper within the Rockface diamond drill hole located at the Jervois project.

The miner said this percentage was within an intercept of 20.5% copper and 302 grams per tonne of silver across 4.21 metres.

The company also revealed it has discovered two new massive sulphide deposits.

In total, six drill intercepts have been found to contain massive sulphides across a distance of more than 160m. Mass sulphides are discoveries that could be rich in metal including copper.

As previously reported by Motley Fool Australia, the KGL Resources share price soared to a 5-month high in November on the back of initial assay results from the Rockface drill hole.

The company will continue drilling at Rockface and assessing the results.

Management comment

Commenting on the copper update, KGL managing director Simon Finnis said:

The new record copper assay from hole D6 at Rockface is extraordinary. Mineralogically, it represents 97% pure bornite and confirms the previous visual estimate.

More importantly, together with previous results and the new visual mineral intersections announced here, they demonstrate that the high-grade shoot of massive sulphides has significant dimensions and grades that bode
well for the future.

SKGL Resources share price snapshot

In the past 12 months, the KGL share price has soared more than 124%. The company’s share price reached a 52-week high of 84.5 cents in April. The yearly low was 25 cents in December last year.

KGL Resources commands a market capitalisation of roughly $253 million at the time of writing.

The post KGL Resources (ASX:KGL) share price rockets 34% on copper update appeared first on The Motley Fool Australia.

More reading

• Why is the KGL (ASX:KGL) share price up over 14% today?

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.

from The Motley Fool Australia https://ift.tt/3Dz2z2T

The Pure Hydrogen Corporation Ltd (ASX: PH2) share price finished flat today following an investment update.

After hitting a 59.5 cent high in early trading, shares in the hydrogen company had retreated to their opening price of 52 cents apiece by the close of trade this afternoon.

Pure Hydrogen is intent on developing clean energy and tapping into the net-zero emissions market.

What did Pure Hydrogen announce today?

In today’s update, Pure Hydrogen provided an investment summary of its fuel cell technology, hydrogen operations and fuel cell mobility.

This follows the Pure Hydrogen shares surging to incredible highs yesterday, finishing the day up 22.89% on the previous close.

To recap, Pure Hydrogen advised the market yesterday it had released several hydrogen fuel cell power generation units to the market in partnership with H2X Global Limited.

In today’s announcement, Pure Hydrogen predicted demand for Hydrogen could increase 10-fold by 2050.

Hydrogen, it explained, was the no-emissions replacement fuel for diesel.

The company predicted global demand for hydrogen would top 500 million tonnes by 2050.

With this in mind, Pure Hydrogen International plans to develop four large scare hydrogen plants on the east coast of Australia — in Gladstone, Mackay, Newcastle and Port Anthony.

Pure Hydrogen share price snapshot

The Pure Hydrogen share price has rocketed a whopping 526.5% in the past 12 months and is up almost 491% this year to date. The range between its 52-week high and low is extreme: from as low as 8 cents per share to as high as 83 cents apiece.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 11% in the past year.

Based on its current share price, Pure Hydrogen commands a market capitalisation of roughly $176 million.

The post What happened with the Pure Hydrogen (ASX:PH2) share price today? appeared first on The Motley Fool Australia.

More reading

• These were the 5 best-performing ASX hydrogen shares of November
• Why the Pure Hydrogen (ASX:PH2) share price is powering 22% ahead today?
• Pure Hydrogen (ASX:PH2) share price plunges 9% despite ‘excellent results’
• Why are ASX hydrogen shares tumbling today?
• Pure Hydrogen (ASX:PH2) share price rebounds 5% on project upgrade

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.

from The Motley Fool Australia https://ift.tt/3oAY7fy

Shares in hydrocarbons giant Santos Ltd (ASX: STO) finished 2.28% in the green at $6.73 on the cusp of the company’s planned merger.

Santos shares were catching bids today as its proposed merger with Oil Search Ltd (ASX: OSH) enters into its final stages. Let’s take a closer look.

What was announced today?

Santos advised it had received the necessary clearance from the Independent Consumer and Competition Commission (ICCC) of Papua New Guinea (PNG) to cement its merger with Oil Search.

The pair were required to satisfy this caveat, which was labelled clause 3.1(e) of the merger implementation deed.

As such, the condition set out in the clause has now been satisfied, as confirmed by both parties in separate announcements today.

The next stage of the deal is to be heard in a PNG court tomorrow, 9 December. A National Court of PNG will hear from both parties in the merger, and how both intend to tackle identifiable risks, amongst other factors.

The merger must still satisfy or waive (where capable) additional customary conditions outlined in the implementation deed.

What’s next?

The confirmation today follows further affirmation by PNG’s Securities Commission yesterday, which also gave its approval for the merger.

This came on the same day that Oil Search shareholders voted with an overwhelming majority for the merger to proceed to form an oil and gas powerhouse in the region.

The vote of approval from Oil Search’s equity holders adds another layer of credibility to the deal. Some expert analysis had felt the company is bringing more value to the table for its roughly 38% share of the newly-formed entity.

However, the same analysis also concluded Oil Search would benefit more from completing the merger than if it remained a standalone entity.

More details are sure to come following the court hearing tomorrow where, if successful, the effective implementation date will be on 17 December. After that, the new Santos shares will begin trading on 20 December on an ordinary settlement basis.

Santos shares are up marginally in the past 12 months having gained just over 4.5% in that time. Year to date, the Santos share price has climbed more than 7% but is down almost 1.5% in the last month.

The post Santos (ASX:STO) share price climbs as merger clears key PNG hurdle appeared first on The Motley Fool Australia.

More reading

• Why Life360, Oil Search, Telix, and Zip shares are storming higher
• 5 things to watch on the ASX 200 on Wednesday
• Oil Search (ASX:OSH) shareholders give green light for Santos merger
• ASX 200 (ASX:XJO) midday update: Zip update impresses, BOQ rises
• Why is the Santos (ASX:STO) share price climbing today?

The author has no positions 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.

from The Motley Fool Australia https://ift.tt/3IqQZdX

The Crown Resorts Ltd (ASX: CWN) share price didn’t join in the market rally today, but now could be the time to buy.

That’s the view of investment banker JPMorgan, which is tipping investors to buy shares in the scandal-hit casino operator before next week when Crown holds its investor day.

Catalysts for the Crown share price

That optimism isn’t reflected in the Crown share price at the moment as the company struggles to hold its head above break-even.

After spending most of the day in the red, shares in the casino closed 0.26% higher at $11.36. This compares to today’s 1.42% jump in the S&P/ASX 200 Index (ASX: XJO) at the close.

But Crown could still make a good bet if JPMorgan is to be believed. The broker reckons there are a few factors that could prompt analysts to upgrade their forecasts for Crown.

First, JPMorgan thinks management could provide reassurances that operations are normalising after the tumultuous period.

Other possible good news

That means the group’s free cash flow could see a marked improvement. Meanwhile, the broker noted a brighter outlook for Melbourne and Perth operations would also go a long way to helping investors rebuild confidence.

Said JPMorgan:

Earnings expectations for CWN vary quite broadly; the current FY23 range implies anything from another lockdown to all systems go.

The divergence is from Barangaroo’s contribution, and although difficult to forecast, there are guiding principles for estimating SYD earnings.

One way to quantify the upside from its new Barangaroo project in Sydney is to calculate the revenue per available room (RevPAR).

We have previously explored the incremental impact of main gaming floor revenues via RevPAR. In the previous instances, we assumed CWN Sydney would track at a similar average rate per room as Crown Towers Melbourne at around A$400 per night.

How much is the Crown share price worth?

Even then, that might prove conservative as average room prices on the Crown Sydney website suggest a figure of $850 a night might be more appropriate.

The broker then calculated the so-called flow through rate to the main gaming floor of the casino. This isn’t an exact science but it provides a guide to the earnings contribution from Crown’s latest resort.

“Taking our above analysis we can see that the additional revenue/earnings from the Barangaroo Gaming operations would add 5%-6% to consensus estimates in FY23,” said the broker.

There are still questions to be answered, but JPMorgan believes there’s significant upside for the Crown share price.

Its 12-month price target on Crown is $15 a share.

The post Why this top broker thinks the Crown (ASX:CWN) share price is a buy right now appeared first on The Motley Fool Australia.

More reading

• Crown (ASX:CWN) share price lifts as company opens door to Blackstone. But what about Star?
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Why Crown, Mineral Resources, Sonic, and Treasury Wine are charging higher
• ASX 200 (ASX:XJO) midday update: Crown jumps, WiseTech tumbles

Motley Fool contributor Brendon Lau 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.

from The Motley Fool Australia https://ift.tt/3pzfvRu

The Pilbara Minerals Ltd (ASX: PLS) share price surged higher today despite no news being released by the company.

However, it wasn’t alone in its gains. The company’s home sector, the S&P/ASX 200 Materials Index (ASX: XMJ), also soared today, having gained 2.14%.

As of Wednesday’s close, the Pilbara share price is $2.49, 5.51% higher than it was at the end of Tuesday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) gained 1.25% today.

Let’s take a look at the latest news from the lithium producer and what might have boosted its stock.

Pilbara share price storms higher

Wednesday was a good day on the ASX for the Pilbara share price.

Its surge brought the company’s gains for the last 30 days to 8.7%, despite it having been relatively quiet in that time.

The first and only time the market heard from Pilbara in the last month was when it announced it had increased its senior debt facilities.

As my Foolish colleague, Aaron reported at the time, the company expanded its finance facility by US$20 million to US$130 million and its undrawn working capital facility by US$10 million to US$25 million. Its total senior secured debt facilities were also boosted by US$30 million to US$155 million.

Most of the extra funds will go towards the restart of its Ngungaju Plant, part of its Pilgangoora Operation.

The news saw the Pilbara share price lift 1.6% and hit a new all-time high.

However, today’s surge is less simple to explain. Though, unexplained gains seemed to have occurred across the lithium-producing board today, with many of Pilbara’s peers joining in on the action.

The Mineral Resources Limited (ASX: MIN) share price soared 5.8%, while that of Liontown Resources Limited (ASX: LTR) increased 4.8%.

Right now, the Pilbara share price is 187% higher than it was at the start of 2021. It has also gained 212% since this time last year.

The post The Pilbara (ASX:PLS) share price pumped 5% higher today. What happened? appeared first on The Motley Fool Australia.

More reading

• Here’s why this top broker is tipping 20% upside for the Pilbara (ASX:PLS) share price
• These 3 ASX 200 shares are topping the volume charts on Monday
• These 3 ASX 200 shares are topping the volume charts this Friday
• 5 best ASX 200 resource shares to hold in November
• These 3 ASX 200 shares are topping the volume charts on Thursday

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

from The Motley Fool Australia https://ift.tt/304aLKK

Today, the S&P/ASX 200 Index (ASX: XJO) took a page out of Wall Street’s book by posting a broad market gain. At the closing bell, the benchmark index surged 1.25% higher to 7,405.4 points.

There were minimal losers in today’s session, with most companies in the index climber higher. The strongest performers included the communication services, materials, and tech sectors. A shift in sentiment towards markets played out as investors’ worries of the Omicron variant waned.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Zip Co Ltd (ASX: Z1P) was the biggest gainer today. Shares in the buy now, pay later provider jumped 10.9% as money flowed back into payment companies. Additionally, Zip appointed former Deliveroo CEO Levi Aron as its chief growth officer for the company’s Quadpay operations. Find out more about Zip Co here.

The next biggest gaining ASX share today was Champion Iron Ltd (ASX: CIA). The iron ore explorer gained 6.44% following a rise in the price of the steelmaking commodity. Uncover the latest Champion Iron details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Zip Co Ltd (ASX: Z1P)	$5.29	10.90%
Champion Iron Ltd (ASX: CIA)	$4.96	6.44%
Mineral Resources Ltd (ASX: MIN)	$47.26	6.27%
Novonix Ltd (ASX: NVX)	$9.09	5.94%
REA Group Ltd (ASX: REA)	$169.89	5.72%
Pilbara Minerals Ltd (ASX: PLS)	$2.49	5.51%
Carsales.com Ltd (ASX: CAR)	$26.42	5.43%
Dicker Data Ltd (ASX: DDR)	$14.30	5.22%
Liontown Resources Ltd (ASX: LTR)	$1.515	5.21%
Lynas Rare Earths Ltd (ASX: LYC)	$9.35	4.94%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Why is the Zip (ASX:Z1P) share price zooming 9% higher today?
• Why Life360, Oil Search, Telix, and Zip shares are storming higher
• ANZ Bank (ASX:ANZ) spruiks $400m tech rebuild with mortgage approval in 10 min
• Here’s why ASX BNPL shares are in the spotlight today
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Mitchell Lawler owns shares of Lynas Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended REA Group Limited and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/31JzZhO

The Adairs Ltd (ASX: ADH) share price was among the best performers on the All Ordinaries on Wednesday.

The furniture and homewares retailer’s shares rose almost 5% to $3.74.

Why did the Adairs share price storm higher?

There appear to have been a few catalysts for the strong gain by the Adairs share price on Wednesday.

One was improving investor sentiment following a strong night of trade on Wall Street after omicron concerns started to ease.

In addition, sentiment in the retail sector was given a further boost this week from the release of the Household Spending Intentions (HSI) Index for November by Commonwealth Bank of Australia (ASX: CBA). That release revealed that the index has hit its highest level since December 2019.

So, with household savings sitting at a lofty $240 billion, retailers are bracing for a strong holiday period.

Bullish broker

Also potentially giving the Adairs share price a lift was a recent broker note out of Morgans.

According to the note, Morgans was pleased with the company’s acquisition of Focus on Furniture. In response, it has retained its add rating and lifted its price target to $4.80. Based on the current Adairs share price, this implies potential upside of 28% for investors.

In addition, Morgans is forecasting a fully franked dividend of 23 cents per share in FY 2022. This equates to a dividend yield of 6.1%, bringing the total return to 34%.

Morgans commented: “It seems to us that the market sees ADH as a COVID beneficiary that is unlikely to deliver much in the way of organic growth over the next few years. Buying Focus perhaps hasn’t done anything to dispel this notion. But we think that’s unfair. Our estimates are for an EPS CAGR of 21% between FY20 and FY24F. The acquisition of Mocka and Focus play a large part in driving this, but even organically, a combination of a very strong loyalty programme, GLA growth and cost efficiencies underpin a growth story that we think is going under the radar. ADD.”

The post Why is the Adairs (ASX:ADH) share price surging 5% higher today? appeared first on The Motley Fool Australia.

More reading

• Morgans names 2 high yield ASX dividend shares to buy now
• Brokers say these 2 top ASX shares are buys in December 2021
• Are these 2 ASX dividend shares buys in December 2021?
• What happened with the Adairs (ASX:ADH) share price today?
• Top ASX shares to buy in December 2021

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. owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3yiILQt

The Woolworths Group Ltd (ASX: WOW) share price has closed higher on Wednesday. This comes after the retail conglomerate announced that it has commenced construction of an online fulfilment project.

The news sent Woolworths shares into positive territory today, finishing the session at $40.81, up 0.39%.

Woolworths seeks to better service online grocery needs

In an effort to cater for the surging demand of online shopping, Woolworths is building its first ever automated customer fulfilment centre.

Set to open in 2024, the facility, located in Western Sydney, will have a floor space of 22,000 square metres. To put this into perspective, this is two times the size of Western Sydney Stadium.

Woolworths has employed solutions provider Knapp to equip the facility with its latest automation technology. This will enable 250 workers to pick and dispatch up to 50,000 home deliveries a week across Western Sydney.

To keep in line with its green commitment, Woolworths is targeting a 5-star green star rating for the building. It plans to harvest rainwater, use solar panels for power and provide electric vehicle charging facilities for its delivery trucks.

Woolworths noted that more than 80% of online orders are fulfilled by stores. The development of the new facility builds on recent investments in micro-fulfilment technology at its Carrum Downs (Victoria) and Maroochydore (Queensland) supermarkets.

E-commerce sales have accelerated since the COVID-19 pandemic with the segment now accounting for 11% of all sales.

Management commentary

Woolworths director of e-commerce Annette Karantoni commented:

Online grocery shopping is booming in Western Sydney as more and more customers look to reclaim time in their busy lives.

Over the past two years alone, we’ve seen the demand for online groceries in Western Sydney more than triple. We need to continue investing in new capacity to keep pace with demand and rising customer expectations.

The development of Auburn will provide a major boost to our same day delivery capacity in Western Sydney — unlocking faster and more flexible online shopping options for our customers. For added convenience, we’ll also offer pick up bays with a direct to boot service for local customers who prefer to collect online orders themselves.

Woolworths share price recap

It’s been a fantastic year for Woolworths shareholders, with the company’s shares accelerating to new all-time highs.

Over the past 12 months, Woolworths shares have pushed around 18% higher, mostly coming from year-to-date gains, up almost 20%.

Based on today’s price, Woolworths commands a market capitalisation of roughly $49.74 billion, with approximately 1.21 billion shares on issue.

The post Woolworths (ASX:WOW) starts construction of project to double online fulfilment capacity appeared first on The Motley Fool Australia.

More reading

• Why did the Woolworths (ASX:WOW) share price have such a great month in November?
• Drinking and gambling: 3 ASX shares to buy now
• Top brokers name 3 ASX shares to sell next week
• Could this be a fly in the ointment for Woolworths’ (ASX:WOW) push into healthcare?
• Can Wesfarmers (ASX:WES) win the battle to take over API?

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.

from The Motley Fool Australia https://ift.tt/3lGnuuI

In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.5% to 7,426 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Appen Ltd (ASX: APX)

The Appen share price is missing out on the tech sector recovery and is down 1% to $9.43. The artificial intelligence data services company’s shares have come under pressure recently due to concerns over increasing competition and potential structural changes in the industry.

Cooper Energy Ltd (ASX: COE)

The Cooper Energy share price is down 5% to 26.7 cents. This follows the release of an operational update this morning. That update revealed revisions to its FY 2022 guidance. This includes a reduction in its operating earnings guidance to $53 million to $63 million from $60 million to $70 million.

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price has continued its slide and is down a further 2.5% to $1.44. The medical device company’s shares have been sold off this year amid weaker than expected sales growth and the resignation of its CEO. PolyNovo is also a favourite of short sellers at present, with 7.5% of its shares held short at present.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma share price is down a further 4.5% to 44 cents. Investors have been selling this pharmacy chain operator’s shares this week following the release of a trading update. Sigma expects its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to drop by 10% in FY 2022. This compares to previous guidance for 5% growth in FY 2022 and was driven largely by operational issues resulting from the roll-out of its Enterprise Resource Planning.

The post Why Appen, Cooper Energy, PolyNovo, and Sigma shares are falling appeared first on The Motley Fool Australia.

More reading

• Why Carsales, Magellan, Nickel Mines, and Sigma shares are dropping
• Leading brokers name 3 ASX shares to buy today
• Why Bapcor, Kogan, Sigma, and Zip shares are dropping today
• Sigma (ASX:SIG) share price slides 7% to yearly low on guidance update
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd and POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3oxdnKw