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It was a disappointing day for the Avita Medical Inc (ASX: AVH) share price as it hit a new 2-year low.

The regenerative medicine company has failed to regain momentum since the beginning of its fall from grace during the COVID-19 crash. Since its peak in February 2020, Avita Medical shares have plummeted 75% to their current position.

In the past month, there have been only two notable announcements from the skin restoration company. Let’s revisit these to grasp what’s influencing the company’s multi-year low share price.

One step forward, two steps back

Investor sentiment towards the Avita Medical share price is clearly swaying towards the negative. However, it hasn’t been all bad news for the RECELL spray-on skin system developer in recent weeks.

On 4 November, the medical technology company revealed that the US Centers for Medicare and Medicaid Services had approved Avita’s application for a new category code. In short, this means patients will now be able to offset the cost associated with the company’s RECELL burns treatment across hospitals and surgical centres.

Importantly, the news hinted at the possibility of widespread adoption of the company’s skin regeneration treatment. In turn, the announcement captured the excitement of ASX investors. This update resulted in a ~15% spike in the Avita Medical share price.

However, the excitement was short-lived as the company’s shares soured the following week. The downfall was triggered by Avita’s earnings report for the first quarter of FY22.

Interestingly, the company’s performance was surprisingly robust. For instance, total revenue increased 39% to $7.0 million. Meanwhile, gross profit margin improved 300 basis points to 85%. Perhaps investors had been hoping for an earnings positive quarter, while Avita delivered a loss of $5.9 million during the period.

Avita Medical share price snapshot

Despite the disappointing share price performance by Avita Medical over the last two years, on a longer timescale, it looks more positive.

From January 2019, the company’s share price has gained 153%. This equates to an annual growth rate of approximately 38.8% over the near 3-year time span. For comparison, the S&P/ASX 200 Index (ASX: XJO) has an annual growth rate of ~10.2% before dividends over the same duration.

The post Why has the Avita Medical (ASX:AVH) share price just hit a 2-year low? appeared first on The Motley Fool Australia.

More reading

• Why Actinogen, AVITA, Inghams, and NAB shares are falling
• Avita Medical (ASX:AVH) share price sinks 11% on Q1 earnings
• Brokers name 3 ASX shares to buy today
• The Avita Medical (ASX:AVH) share price just leapt 16% because of this
• Why this medical tech ASX share could rocket today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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The ASX welcomed another new face today as RAS Technology Holdings (ASX: RTH) underwent its initial public offering (IPO).

The company’s shares floated at 11 am AEDT on Tuesday before finishing their first day trading at $1.60. That represents a 6.6% gain on the company’s prospectus‘ offer price.

Let’s take a closer look at the ASX newbie and its debut on the market.

But first, what does RAS Technology do?

The RAS in RAS Technology is an acronym for Racing and Sports, indicating the industry in which the company operates.

Racing and Sports is the holding company’s main subsidiary. It works to provide integrated premium data, enhanced content, and software-as-a-service solutions to the racing and wagering industries.

It operates in both business-to-business and business-to-customer spheres and services a geographically diverse and established customer base of racing bodies and authorities, wagering operators, media and digital organisations, and retail and private clients.

Right now, it has staff in Australia, the United Kingdom, and Sri Lanka. It also has plans to expand into the United States in 2022.

RAS Technology’s IPO

RAS Technology raised $29 million through its IPO.

Under its prospectus, RAS Technology offered 19.3 million shares for $1.50 apiece.

That meant it expected its market capitalisation at the time of listing to be around $68 million.

Though, as of its first close, the company can boast a valuation of approximately $72.6 million.

How has the business performed recently?

Here is a brief breakdown of the company’s results for financial year 2021:

• Around $5.5 million of revenue
• Gross profits of approximately $5.4 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of around $1.4 million
• Operating expenses as a percentage of revenue came to 84.1%

The company doesn’t have any plans to pay dividends.

The post RAS Technology (ASX:RTH) share price leaps 6% on IPO. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Could it be time to consider buying QBE (ASX:QBE) shares in November?
• How much is the Wesfarmers (ASX:WES) dividend expected to grow in FY22?
• Genworth (ASX:GMA) share price leaps 6% on share buyback news
• The DigitalX share price has tumbled 30% in 8 days. What’s happening?

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.

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Today, the S&P/ASX 200 Index (ASX: XJO) rallied into the close this afternoon on strength within the mining sector. At the end of the day, the benchmark index gained 0.78% to 7,410.6 points.

The Aussie market was filled with green on Tuesday despite a disappointing session for US shares overnight. Leading the benchmark higher were energy and mining shares following a rebound in oil and iron ore prices. Meanwhile, tech companies were the worst-performing within the ASX index on Tuesday.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Fortescue Metals Group Ltd (ASX: FMG) was the biggest gainer today. Shares in the iron ore mining company surged 10.32% after the price of the steelmaking commodity climbed to a higher position. Find out more about Fortescue Metals Group here.

The next biggest gaining ASX share today was Champion Iron Ltd (ASX: CIA). Just like Fortescue, this iron ore explorer received an 8.27% boost to its share price following the increase in the commodity price. 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
Fortescue Metals Group Ltd (ASX: FMG)	$17.43	10.32%
Champion Iron Ltd (ASX: CIA)	$4.58	8.27%
Yancoal Australia Ltd (ASX: YAL)	$2.75	5.36%
Mirvac Group (ASX: MGR)	$2.95	5.36%
Mineral Resources Ltd (ASX: MIN)	$44.07	4.85%
Whitehaven Coal Ltd (ASX: WHC)	$2.50	4.17%
New Hope Corporation Ltd (ASX: NHC)	$2.05	4.06%
BHP Group Ltd (ASX: BHP)	$38.05	4.02%
Summerset Group Holdings Ltd (ASX: SNZ)	$13.08	3.89%
Rio Tinto Ltd (ASX: RIO)	$95.305	3.80%

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

• Here are the 3 heaviest traded ASX 200 shares this Tuesday so far
• What’s causing the Fortescue (ASX:FMG) share price to leap 9% today?
• 2 high-yielding ASX 200 dividend shares
• Why ASX shares are still good value: fund manager
• Leading brokers name 3 ASX shares to sell today

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

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The QBE Insurance Group Ltd (ASX: QBE) share price has been performing solidly this year. A change in sentiment towards the insurance company has followed the insurer’s return to profitability.

At the end of Tuesday’s session, shares in QBE finished at $12.38, representing an increase of 1.23%. Meanwhile, the company’s share price has surged 45% since the beginning of the year.

The more than impressive performance has not solely been led by retail investors either. A number of analysts are also bullish on the business since it reported a robust first-half result in August. While more severe weather events have been a concern for investors of insurance companies, one expert remains optimistic on QBE and its shares in 2022.

Are QBE shares an opportunity?

In a letter, Ausbil’s executive chair, chief investment officer, and head of equities Paul Xiradis outlined his expectations for shares next year. A year that Xiradis expects will see COVID-19 brought under control by the country’s health measures.

Positively, the fund manager believes the year ahead will include strong earnings growth for some cyclical businesses. While some pundits are proclaiming that ASX shares are expensive, Xiradis and the Ausbil Management team see value in some areas of the market based on forward earnings per share (EPS) growth.

For example, general insurance is one of a few sectors that Ausbil believes is offering strong potential EPS growth for FY22 relative to value. QBE Insurance was named as an opportunity within the sector inside the letter.

Describing the potential tailwind for QBE shares, Xiradis wrote:

We are entering an environment where general insurers will benefit from stronger margins and returns, with companies like QBE of interest in this space.

Shaking off large claims

While investors are getting excited about the QBE share price, natural catastrophe claims have been stacking up across the insurance industry.

In an interview with The Australian, QBE CEO Andrew Horton said:

The insurance industry is there to support the challenge of risk but there’s a limit to what the insurance industry can do. The challenge for the insurance industry is to work with governments.

Furthermore, QBE is yet to advise shareholders of the latest impact from Australia’s stretch of wild weather in October. Whereas, Suncorp Group Ltd (ASX: SUN) has outlined an estimated $225 million to $250 million worth of claims.

Despite this, ASX-listed QBE shares are up nearly 5% since these erratic weather events.

The post Could it be time to consider buying QBE (ASX:QBE) shares in November? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX dividend shares to buy today
• Why is the QBE (ASX:QBE) share price outperforming IAG lately?

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

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Wesfarmers Ltd (ASX: WES) is expected to grow its dividend in FY22 on top of the growth in FY21.

One of the key objectives of Wesfarmers is to deliver satisfactory shareholder returns over the long-term.

Wesfarmers regularly takes the opportunity to pay shareholders a healthy level of its profit out as a dividend. It achieves this thanks to its profit, cashflow, “strong” balance sheet and portfolio of market-leading businesses which position it for achieving good dividends.

In FY21, Wesfarmers paid a full year dividend of $1.78 per share – that was an increase of 17.1% compared to FY20. This represented a payout ratio of 83% of continuing operations underlying earnings per share (EPS).

How much could the Wesfarmers dividend grow in FY22?

One of the brokers that has made a projection about the Wesfarmers dividend in FY22 is UBS.

The broker has projected that Wesfarmers is going to grow its annual dividend by 2.8% in FY22 to $1.83 per share. That would represent a dividend payout ratio of 90.6% of the estimated profit for the 2022 financial year, if the broker is right on both projections.

In FY23, Wesfarmers is expected by UBS to grow its dividend again to $2.08 per share. That would be a grossed-up dividend yield of 5% if the broker is right.

Is the Wesfarmers share price an opportunity?

There are not many brokers that are bullish on the business at the moment, with most analyst ratings being neutral/a hold on the company.

UBS is one of those that is neutral on the business, with a price target of $62 – a little higher than where it is right now.

But there are some brokers that are even less optimistic.

Citi actually rates Wesfarmers as a sell, with a price target of $50. That’s approximately 15% lower than where it is today. Citi thinks that Wesfarmers shares are looking a bit expensive, and thinks that there are plenty of disruptions going such as the supply chain and increasing freight costs.

Investing for growth

Wesfarmers is doing a number of initiatives to try to grow the business. It’s investing in data and digital capabilities, including an ecosystem that will allow a more seamless and personalised customer experience across the retail businesses.

But it’s also investing for growth through acquisitions. It recently entered into a scheme implementation deed with Australian Pharmaceutical Industries Ltd (ASX: API). Wesfarmers plans to buy each API share for a price of $1.55. API’s board has unanimously recommended the deal to shareholders.

Wesfarmers managing director Rob Scott says that the acquisition of API will provide an opportunity to enter the growing health, wellbeing and beauty sector. Mr Scott also said:

Wesfarmers continues to see opportunities to invest in and strengthen the competitive position of API and its community pharmacy partners by expanding ranges, improving supply chain capabilities and enhancing the online experience for customers.

Valuation

Looking at some of the projections by brokers can give a sense of how expensively the business is trading.

Citi’s numbers put the Wesfarmers share price at 28x FY22’s estimated earnings.

Looking at FY23, UBS has a more optimistic estimate, with the Wesfarmers share price valued at 26x FY23’s estimated earnings.

The post How much is the Wesfarmers (ASX:WES) dividend expected to grow in FY22? appeared first on The Motley Fool Australia.

More reading

• Only a few ASX 200 companies have received this honour and Scentre (ASX:SCG) just joined them
• Why has the Wesfarmers (ASX:WES) share price leapt 8% over the past month?
• Is the Wesfarmers (ASX:WES) share price great value or overvalued?
• Why the Wesfarmers (ASX:WES) share price has underperformed the ASX 200 in the last 3 months
• Top brokers name 3 ASX shares to sell next week

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 owns shares of and has recommended Wesfarmers 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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The Genworth Mortgage Insurance Australia Ltd (ASX: GMA) share price is pushing higher in late afternoon trade. The mortgage insurance company released an announcement regarding an on-market share buyback.

At the time of writing, Genworth shares are swapping hands for $2.32, up 6.42%.

Genworth set to commence share buy back

In today’s statement, Genworth advised it intends to begin an on-market share buyback from 8 December. The maximum value the company is willing to spend on taking a portion of shares off the market is $100 million.

Based on Genworth’s closing share price of $2.18 yesterday, this buyback would represent 11.1% of the total issued capital. This equates to roughly 45.9 million shares.

The company noted that, depending on business and market conditions, the number of shares to be purchased may change. However, the buyback will not exceed more than 10% of Genworth ordinary shares without shareholder approval.

The reason for the buyback is that the board is trying to bring Genworth’s solvency ratio within a target capital range of 1.32 to 1.44 times the Prescribed Capital Amount (PCA) on a Level 2 basis.

Genworth CEO and managing director Pauline Blight‐Johnston said:

The on‐market share buyback is consistent with Genworth ensuring we have an efficient capital structure and helps us to deliver improved returns to our shareholders.

Genworth share price snapshot

It’s been a disappointing 12 months for Genworth shares, falling 2% in that time. Year-to-date, its shares are hovering 3% below for the last 11 months.

Based on today’s price, Genworth commands a market capitalisation of about $952.91 million and has approximately 412.51 million shares outstanding.

The post Genworth (ASX:GMA) share price leaps 6% on share buyback news appeared first on The Motley Fool Australia.

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• The DigitalX share price has tumbled 30% in 8 days. What’s happening?
• Here’s why this fund manager sold its Star Entertainment (ASX:SGR) shares
• Here’s why the Magnis (ASX:MNS) share price is rocketing 21% today
• European Lithium (ASX:EUR) share price sinks after listing in US
• Here’s why the Atomos (ASX:AMS) share price is sinking 8% today

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

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The DigitalX Ltd (ASX: DCC) share price is not having a fun day of trading on the ASX boards this Tuesday. At the time of writing, DigitalX shares are down a nasty 8.33% to 11 cents apiece.

Unfortunately, it gets worse for investors. This latest drop means the DigitalX share price is now down by roughly 30% from the 52-week high of 16 cents a share that we saw less than two weeks ago. I don’t need to tell you that’s a pretty devastating drop in such a short space of time.

So what happened to this now-former ASX high flyer? After all, DigitalX was a company that had delighted investors with a 150% surge just between 1 October and 15 November.

Well, it’s not entirely clear. There have been no price-sensitive (or any, for that matter) announcements out of this company since 10 November.

As we covered at the time, that was the week when DigitalX announced its most recent cryptocurrency-related fund performances.

The company announced a new record high for funds under management (FUM) at the time, with $38.99 million in FUM as of 31 October, a 36.8% increase on the previous month. DigitalX’s Bitcoin Fund and Digital Asset Fund both rose by an impressive 37.46% and 27.82% respectively over October as well.

But that was then, and this is now. So what could have gone wrong with this company?

DigitalX share price under-mined by Bitcoin?

The first and best place to look is the cryptocurrency markets themselves, since this is the space in which DigitalX operates and invests.

Looking at the price of Bitcoin (CRYPTO: BTC), we can see the flagship cryptocurrency has fallen 15.8% since making a new all-time high of close to US$67,000 a coin back on 8 November.

Today, one Bitcoin is asking just US$56,900 at the time of writing. We have seen similar trends play out for other cryptos like Ethereum (CRYPTO: ETH).

Such a steep fall in Bitcoin conceivably would have a large impact on a crypto fund manager like DigitalX. At least, that’s what the market could be assuming.

Therefore, this is a very possible explanation as to why the DigitalX share price is getting hammered today and has been hammered since this dip in Bitcoin began earlier this month.

At the current DigitalX share price of 11 cents, this company has a market capitalisation of roughly $89 million.

The post The DigitalX share price has tumbled 30% in 8 days. What’s happening? appeared first on The Motley Fool Australia.

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• Did the Bitcoin and Ethereum bubble burst just signal a crypto market top?
• Why ASIC chair warns ‘great caution’ needed when investing in crypto
• Planning to gift Bitcoin (CRYPTO:BTC) or another crypto for Christmas? You’re not alone
• Could carbon credits become the new crypto? This fundie thinks so
• How has Bitcoin (CRYPTO:BTC) performed since this weekend’s Taproot upgrade?

Motley Fool contributor Sebastian Bowen owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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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Shares in Star Entertainment Group Ltd (ASX: SGR) have been caught in a violent whirlwind of allegations and speculation over the last month and a half. During this time, the Star Entertainment share price has fallen more than 19%.

The dismantling of the company’s value largely followed allegations stemming from a joint investigation by the Sydney Morning Herald (SMH), The Age, and 60 Minutes. It was alleged the casino allowed money laundering, organised crime, fraud, and foreign interference.

Following the reports, the Australian boutique fund manager Perennial Partners decided to sell its Star Entertainment shares.

Perennial jumps ship from Star Entertainment shares

Despite one of the most famous investing quotes advising “buy when there’s blood in the streets”, the team at Perennial Partners wasn’t interested in applying it to the casino operator in October. Instead, the Perennial Value Australian Shares Trust did the opposite.

While Star Entertainment shares have recovered 15% since 12 October, the share price remains a long way off its recent 52-week high. Lingering in the minds of investors is likely the potential for a public hearing. However, as previously covered, this would depend on a recommendation by the current investigator, Adam Bell.

As it stands, Perennial’s fund shouldn’t be impacted by any further outcomes since exiting its position. The fund described its reasoning for the sale in its monthly report:

There was strong reason to believe that Star would be a beneficiary of this [improved compliance] process, including potentially merging with Crown. However, claims of similar issues at Star as had occurred at Crown, mean that the business will be effectively hamstrung for a period of time as these matters are investigated.

This was very disappointing, as Star was widely considered to have been much better managed than Crown. As a result, we decided to exit the stock.

Buying instead

The fund went on to use the proceeds from the Star Entertainment share sale to increase its holding in Incitec Pivot Ltd (ASX: IPL). Unlike the casino operator, Incitec has been enjoying the sustained appreciation of its share price in recent months.

On 15 November, the agricultural chemicals company reported a 91% lift in net profit after tax for the full year. Following the release, shares surged to a 52-week high. The team at Perennial Partners holds a positive outlook for the company on strong fertiliser prices.

Finally, Star Entertainment shares are down approximately 2% since the beginning of the year. Whereas, the S&P/ASX 200 Index (ASX: XJO) is up around 12%.

The post Here’s why this fund manager sold its Star Entertainment (ASX:SGR) shares appeared first on The Motley Fool Australia.

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• These 3 ASX 200 shares are topping the volume charts this Monday
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Magnis Energy Technologies Ltd (ASX: MNS) share price is surging higher today amid the company’s US listing and its chair’s re-election.

The company’s stock will be floating on the OTCQX Best Market tonight (Australian time).

Additionally, Magnis chair Frank Poullas kept his seat on the company’s board yesterday. That’s despite reports claiming he is the subject of an Australian Securities and Investments Commission (ASIC) probe.

At the time of writing, the Magnis share price is 61 cents, 20.79% higher than its previous close.

For context, the broader market is also in the green today. The S&P/ASX 200 Index (ASX: XJO) is up 0.7% while the All Ordinaries Index (ASX: XAO) has gained 0.74%.

Magnis share price soars on Tuesday

Tuesday is proving to be a good day for Magnis shareholders. The company’s share price is taking off despite no price-sensitive news having been released.

However, the company’s stock is getting ready to become more liquid tonight.

In a bid to simplify the process US-based investors must go through to get a hold in Magnis, the company is listing on the US OTC market at 1.30am AEDT. It will trade there under the ticker OTCQX: MNSEF.

The secondary listing could also inspire confidence in Magnis as the OTC upholds notoriously strict standards for companies listing on the exchange. Secondary listings also tend to increase the liquidity of a company’s stock.

On the new listing, Poullas commented:

We are seeing significant interest from investors in the US given our unique position as the largest shareholder in one of the largest lithium-ion battery plants in North America. We are privileged to be ringing the OTC Markets Opening Bell tonight.

Speaking of Poullas, more than 99.5% of Magnis’ shareholders voted for his re-election at the company’s annual general meeting yesterday.

The support came despite the Magnis share price being halted last week following reports Poullas is being investigated by ASIC.

The same report also claimed the watchdog hadn’t ruled out investigating Magnis as well, a claim Magnis denied.

However, the company didn’t go so far as to deny ASIC is looking into Poullas.

The post Here’s why the Magnis (ASX:MNS) share price is rocketing 21% today appeared first on The Motley Fool Australia.

More reading

• Why Magnis, Nanosonics, WiseTech, and Zip shares are dropping
• Magnis (ASX:MNS) share price falls 40% this week amid ASIC and board woes
• Magnis Energy (ASX:MNS) share price frozen amid ASIC probe
• Liftoff: Why is the Magnis Energy (ASX:MNS) share price up 50% in a week?

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.

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The European Lithium Ltd (ASX: EUR) share price is in reverse on Tuesday afternoon. This comes after the lithium miner announced its shares have now begun trading on the OTCQB market in the United States.

At the time of writing, European Lithium shares are swapping hands for 14 cents, down 3.45%.

European Lithium expands access to US investors

A possible catalyst for the fall in the European Lithium share price is that investors are fearing a share dilution.

According to the release, European Lithium’s ordinary shares are now quoted on the OTCQB market. Trading under the symbol EURIF, the listing provides direct access to US institutions and retail investors to invest in.

A diversified shareholder base bolsters the company’s strategic efforts to scale up its lithium projects in Europe. The company is focused on developing the Wolfsberg Lithium Project in Austria to production and securing critical local lithium supply.

European Lithium’s primary listing is on the ASX, with the secondary quotation on the OTCQB market and the Frankfurt Stock Exchange, under the symbol PF8.

European Lithium executive chair Tony Sage commented:

We’re actively engaging with US investors and institutions who have expressed strong interest in the company and its projects. We believe that providing a convenient and transparent trading platform for US investors to directly access our shares will improve liquidity and broaden awareness of the company among mature and sophisticated investors with strong interest in lithium.

More on the OTCQB market

The OTCQB market, also called the “Venture Market”, is a trading platform that is operated by OTC Markets Group Inc in New York. The middle-tier market provides a home for shares that are not listed on the two big United States exchanges, NYSE and NASDAQ.

European Lithium share price summary

Over the last 12 months, the European Lithium share price has accelerated to post a 230% gain. Year-to-date, its share price performance is almost as impressive, up 210%.

Since hitting a 52-week high of 19 cents in early November, European Lithium shares have retreated for the time being.

Based on today’s price, European Lithium presides a market capitalisation of roughly $155.9 million, with approximately 1.08 billion shares outstanding.

The post European Lithium (ASX:EUR) share price sinks after listing in US appeared first on The Motley Fool Australia.

More reading

• Here’s why the Atomos (ASX:AMS) share price is sinking 8% today
• Here are the 3 heaviest traded ASX 200 shares this Tuesday so far
• BHP (ASX:BHP) share price jumps 4% on ‘global energy company’ deal
• Why is the Australian Ethical Investment (ASX:AEF) share price surging 7% today?
• The AGL (ASX:AGL) share price has lost 8% so far this month. What’s next?

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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