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It certainly has been a disappointing year for the AGL Energy Limited (ASX: AGL) share price.

Since the start of 2021, the energy company’s shares have lost a whopping 50% of their value and are now trading at $6.05.

This means the AGL share price has fallen almost 70% over the last five years.

Could the AGL share price bounce back and hit $7.50 by the end of the year?

While the market remains very divided on the AGL share price, one top broker believes value is emerging.

According to a note out of Ord Minnett from last week, its analysts have a buy rating and $7.65 price target on the company’s shares.

Based on the current AGL share price, this implies potential upside of 26% for investors before dividends.

The broker has also pencilled in a 32 cents per share fully franked dividend in FY 2022. If we add this into the equation, the potential return on offer increases to over 31%.

As a result, it would appear as though the team at Ord Minnett believe the AGL share price could be trading in or around the $7.50 mark by the end of the year.

What is the broker saying?

Ord Minnett notes that the company is planning to change its name to Accel Energy and demerge AGL Australia (its retail business) as a separately listed entity via capital reduction.

The broker has been looking over the retail business and believes it would have a lot of appeal as a takeover target post-demerger. Its analysts have even suggested that Telstra Corporation Ltd (ASX: TLS) could be a potential suitor given its interest in the energy sector.

It commented: “Telstra has expressed interest in growing its energy retailing business and we see substantial synergies between the largest telco company and the second-largest energy retailer.”

And based on other transactions in the industry, it suspects the business could command a decent price. In fact, the broker suspects the retail business would be worth ~$10.75 per share based on current industry takeover multiples. This is significantly higher than where the AGL share price trades today.

This could make AGL one to watch in the coming months.

The post Could the AGL (ASX:AGL) share price reach $7.50 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• AGL (ASX:AGL) share price slumps amid expert’s warning of earlier coal exit
• Why is the AGL (ASX: AGL) share price sliding lower on Monday?
• Why did the AGL (ASX: AGL) share price have such a shocking FY22 first quarter?
• Why this broker sees 30% upside for the AGL (ASX:AGL) share price
• Why did the AGL share price have such a lousy month in September?

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 Telstra Corporation 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 Qantas Airways Limited (ASX: QAN) share price is taking off today despite one billionaire publicly selling their holding in the company.  

Billionaire, founder and former leader of the United Australia Party Clive Palmer has removed Qantas’ shares from the holdings of the Palmer Group in protest of the airline’s mandatory vaccination policy.

Despite the apparent sell-off, Qantas is in the green on the ASX today.

At the time of writing, the Qantas share price is $5.55, 1.46% higher than its previous close.

That’s significantly better than the performance of the broader market. Right now, the S&P/ASX 200 Index (ASX: XJO) is down less than 0.1%, as is the All Ordinaries Index (ASX: XAO).

Let’s take a closer look at Palmer’s stance against Australia’s largest airline.

Qantas share price lifts despite Palmer’s critism

The Qantas share price is soaring higher today despite billionaire businessman and leader of the United Australia Party Clive Palmer bailing from the airline.

Palmer has removed Qantas’ stock from the Palmer Group of Companies’ portfolio due to the airline’s stance on COVID-19 vaccination.

Qantas mandated its employees must be vaccinated against COVID-19 back in August. Qantas’ frontline employees must have received both jabs by November, while the rest of its staff have until March 2022.

At the time, Qantas CEO Alan Joyce stated:

Having a fully vaccinated workforce will safeguard our people against the virus but also protect our customers and the communities we fly to.

However, Palmer has a different view. In a statement released by the United Australia Party, he commented:

Alan Joyce and his board have taken risks which could result in possible future legal ramifications…

I believe the financial risks Qantas is taking over mandatory vaccinations of its staff leaves them exposed to future financial damages by staff who suffer side effects or worse.

As many onlookers might have predicted, the Qantas share price was unfazed by Palmer’s proclamation.

According to data from the Therapeutic Goods Administration, only 2.3% of people who get a COVID-19 jab experience side effects. The most common side effects are a sore arm, mild fatigue, and headaches, all lasting less than 48 hours.

The post Qantas (ASX:QAN) share price lifts despite Clive Palmer sell-off appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price falls amid new budget airline competition
• Will the Qantas (ASX:QAN) share price follow Ryanair’s surge on reopening?
• Top brokers name 3 ASX shares to buy next week
• International borders will reopen soon. Why is the Qantas (ASX:QAN) share price stalling?
• Travel stocks soar. Hopes for a new COVID treatment. Evergrande drags on. Scott Phillips on Nine’s Late News

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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When investors think ‘green’ or environmentally sustainable investments, Brickworks Limited (ASX: BKW) shares likely aren’t the first to come to mind. The 91-year-old company has evolved greatly over its tenure, though its core brickmaking operations have been carried all the way through.

Today, Brickworks operates 45 manufacturing plants, producing over 2,000 different brick and building products spanning 17 brands. With such large-scale operations, it may not come as a surprise that the company consumed 4.1 petajoules of energy (equivalent to 77,900 homes) in FY21.

However, as discussed at the ASX CEO Connect conference yesterday, the company has some green credentials.

Green ways of doing business

There are many companies on the ASX that are easily distinguishable as environmental, social, and governance (ESG) focused.

Such companies might include Australian technology company Calix Ltd (ASX: CXL), which is working on CO2 capture and battery tech. Another example might be Genex Power Ltd (ASX: GNX), which owns and develops renewable energy assets.

Alas, Brickworks shares would seem like an atypical inclusion among these green ASX-listed peers. Though, as managing director Lindsay Partridge pointed out at the ASX CEO Connect conference yesterday, bricks remain to be one of the most energy-efficient building materials.

Adding to this, Partridge stated that Brickworks’ bricks are carbon neutral after 9 months of installation. Considering that the clay bricks are guaranteed for 100 years, the product is attractive from a carbon-neutral perspective.

As such, the company foresees a strong demand for bricks, masonry, roof tiles, and precast in the future. Brickworks considers these materials as key enablers in achieving the United Nation’s sustainable development goal, “Make cities and human settlements inclusive, safe, resilient, and sustainable.”

Partridge also noted that Brickworks is using the spoil from the Brisbane Cross River rail project to make bricks.

These initiatives are building upon past work within the company to reduce its environmental footprint. According to its sustainability report, Brickworks’ Australian operations have decreased emissions by 39.9% since FY06.

Brickworks shares are greener in more ways than one

To the excitement of shareholders, Brickworks hasn’t broken the bank while implementing its environmental plans. Instead, Brickworks shares have stampeded upwards in recent years — providing great value to shareholders.

In the past year, the company’s shares have gained 22% (23.2% when including dividends). This is roughly in line with the S&P/ASX 200 Index (ASX: XJO) return of 19% (23.7% when including dividends). However, the difference begins to stand out when assessing from a longer time period.

Over the past three years, Brickworks shares have garnered a return of 36%. While the Aussie benchmark has delivered 22.3%.

The post Could Brickworks (ASX:BKW) shares be a greener investment than first thought? appeared first on The Motley Fool Australia.

More reading

• These ASX dividend shares keep giving investors a payrise
• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in
• Why has the Brickworks (ASX:BKW) share price slumped 5% in 9 days?
• 2 ASX dividend shares that could be buys in October 2021
• Why the Brickworks (ASX:BKW) share price reached a new 52-week high today

Motley Fool contributor Mitchell Lawler owns shares of Genex Power Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks. 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 S&P/ASX 300 Index (ASX: XKO) is edging lower today, continuing the disappointing run on this week’s 0.54% loss.

At the time of writing, the ASX 300 is hovering 0.06% lower to 7,278.9 points. This means the index is now down by more than 2% in a month.

Let’s take a look at the biggest winners and losers on the ASX 300 today.

Paladin Energy Ltd (ASX: PDN)

The Paladin share price is roaring 20.68% higher to 88.7 cents amid the company’s release of its sustainability report.

The company noted that its Langer Heinrich Mine in Namibia is progressing towards restarting production. In addition, it is engaging with global nuclear energy utilities to secure long-term contracts.

Overnight, the Global X Uranium Exchange Traded Fund (ETF) jumped 11.65% to US$26.92. This has also led to other industry players in the uranium sector experiencing sharp and sudden increases in their share prices.

The a2 Milk Co Ltd (ASX: A2M)

Another mover today is the A2 Milk share price, up 13.45% to $6.58.

The infant formula company is on the receiving end of smaller rival Bubs Australia Ltd (ASX: BUB)’s latest news.

Bubs reported earlier today that it achieved a 96% year-on-year increase in gross revenue to $18.5 million for Q1 FY22. Investors appear to believe that the struggling industry has brighter days ahead following the severe impact COVID-19 had.

Energy Resources of Australia Ltd (ASX: ERA)

The Energy Resources share price is also pushing ahead, up 11.54% to 43.5 cents.

The mineral exploration and production company announced its quarterly update early yesterday morning. It advised that no production of uranium oxide occurred over the 3-month period ending 30 September.

Energy Resources stated it will continue to sell down its stocks of uranium oxide. Expected contract sales are estimated to come in at 1.37 million pounds in 2021.

Which ASX 300 companies are heading south?

Pact Group Holdings Ltd (ASX: PGH)

The Pact Group share price is down a heavy 12.79% to $3.00.

Investors are selling the packaging company’s shares after Pact Group provided a sale update on its contract manufacturing businesses.

The company said that it terminated the deal as it was perceived to be under unfavourable terms. In addition, a brief trading update was attached to its update.

Bank of Queensland Ltd (ASX: BOQ)

Also being weighed down by investors today is the Bank of Queensland share price, down 4.94% to $9.24.

The regional bank released its full-year results for the 2021 financial year.

While its numbers reported growth across the board, investors have been focused on the company’s near-term outlook.

Management advised its net interest margin is forecast to fall by up to 7 basis points in FY22. Bank of Queensland blamed increased competition and the low interest rate environment for the decline.

The post Which ASX 300 shares are leading the way mid-week? appeared first on The Motley Fool Australia.

More reading

• Why Bank of Queensland, Fortescue, Liontown, & Pact shares are dropping
• Why A2 Milk, EOS, GUD, & PointsBet shares are charging higher
• Star Entertainment (ASX:SGR) share price surges despite police probe
• ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump
• Here’s why ASX uranium shares are booming double digits across the board on Wednesday

Motley Fool contributor Aaron Teboneras owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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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Although the Westpac Banking Corp (ASX: WBC) share price has been trading sideways in recent months, that hasn’t stopped it from smashing the market in 2021.

Since the start of the year, the banking giant’s shares are up 29%. This is more than triple the return of the S&P/ASX 200 Index (ASX: XJO).

Could the Westpac share price hit $30.00 by Christmas?

The good news for investors is that one leading broker still sees a lot of upside in the Westpac share price.

A recent note out of Goldman Sachs reveals that its analysts have retained their buy rating and $29.83 price target on the bank’s shares.

Based on the current Westpac share price of $25.35, this implies potential upside of almost 18% for investors before dividends.

And with Goldman forecasting a 128 cents per share fully franked dividend in FY 2022, the total potential return on offer stretches close to 23%.

All in all, the team at Goldman Sachs appears to believe there is a possibility the Westpac share price could be trading near $30.00 at Christmas.

What did the broker say?

There are a number of reasons that Goldman is positive on the Westpac share price. This includes its belief that the company’s bold cost reduction plans pose upside risk to earnings estimates in the coming years.

Goldman explained: “We maintain our Buy rating given: i) the balance of risk to our earnings remains skewed to the upside, with our FY24E cost forecast about 10% above management’s FY24E target of A$8 bn (on a like-for-like basis), which, if achieved, would drive our FY24E cash earnings up by c. 7%; ii) volume momentum appears to have been reinvigorated, now tracking at 7.5% 3-month annualised as at Jun-21 (vs 0.2% 6 months ago), and iii) the stock is trading more than one standard deviation cheap versus the sector on PPOP multiples (15% discount vs. 1.5% long-run average discount), and our revised TP offers 22% TSR.”

The post Could the Westpac (ASX:WBC) share price hit $30 by Christmas? appeared first on The Motley Fool Australia.

More reading

• What these top brokers are saying about the Westpac (ASX:WBC) share price
• ASX 200 (ASX:XJO) midday update: Westpac’s $1.3bn earnings hit, Ansell sinks
• Westpac (ASX:WBC) share price edges lower following $1.3bn hit to earnings
• Why this top broker is bullish on the Westpac (ASX:WBC) share price
• How did ASX bank shares perform in the last quarter?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 S&P/ASX 200 Index (ASX: XJO) is having a pretty wild day of trading so far this Wednesday. At the time of writing, the ASX 200 is down at 7,275 points. However, the ASX 200 has been both up and down today, and by some swinging margins too. At least it’s not dull!

But let’s digress for a moment, and instead, check out the ASX 200 shares that are topping the trading volume charts so far this Wednesday. That’s according to investing.com.

The 3 heaviest traded ASX 200 shares this Wednesday so far

Beach Energy Ltd (ASX: BPT)

ASX 200 oil driller Beach is our high volume share today. Beach has seen a sizeable 13.35 million of its shares trade on the markets so far this Wednesday. Like the ASX 200, Beach has had a volatile day.

It rose as high as $1.46 a share this morning (up 2%) before falling all the way down to $1.43, where it sits presently. There is not much in the way of news out from the company today, so this volatility is the likely culprit behind Beach’s high trading volume.

Scentre Group (ASX: SCG)

ASX 200 Real Estate Investment Trust (REIT) Scentre is next up here. A hefty 13.75 million Scentre units have swapped hands so far on the ASX boards today.

Again, there are no major news or announcements we can point to for this volume, so it’s probable that the 1.51% rise Scentre units have enjoyed so far today, is behind this volume. Scentre is currently trading at $3.02 a unit.

Pilbara Minerals Ltd (ASX: PLS)

And last but certainly not least is a familiar face for this list, ASX 200 lithium producer Pilbara Minerals. Pilbara has seen a significant 28.45 million shares bought and sold so far this Wednesday. Pilbara has also had a wild and woolly day on the markets thus far.

This company opened at $1.99 per share this morning before spiking to $2.03 (up more than 3%) around lunchtime. Afterwards, Pilbara has been on the slide, and is currently sitting at $1.96, flat from where it closed yesterday. My Fool colleague Brooke looked at some recent developments with Pilbara this afternoon, but it seems that this volatility is once again behind the elevated trading volumes we are seeing today.

The post Here are the 3 heaviest traded ASX 200 shares this Wednesday so far appeared first on The Motley Fool Australia.

More reading

• Own ASX lithium shares? Here’s what the IMF is predicting for the sector
• Pilbara Minerals (ASX:PLS) share price struggles despite plant restart milestone
• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far
• Why is the Beach Energy (ASX:BPT) share price falling on Tuesday?
• ASX lithium shares lift as spot prices hit all-time highs

Motley Fool contributor Sebastian Bowen 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 rise in popularity of the exchange-traded fund (ETF) as an investment vehicle on the ASX is not a new one. We have covered ASX investors’ seemingly insatiable appetite for ETFs many times here on the Fool.

But the age of the ETF might only be getting started, going off of the latest data.

According to ETF provider BetaShares, the ASX just had its best month ever in terms of ETF inflows. BetaShares’ latest Australian ETF Review covers the month of September, and it makes for some interesting reading for any ETF (or investing) enthusiast.

The report found that September ended up experiencing the highest monthly net inflows on record for the ETF industry, with the entire ETF sector swelling by an unprecedented $2.9 billion over the month just passed. There are now $125.3 billion in ETF funds under management on the ASX, another record high.

Incredibly, BetaShares reckons the ETF market in Australia has grown by a compounded average growth rate of 46% per annum between July 2001 and September 2021. The growth rate over the past 12 months to September alone was 76%.

September also saw $9 billion in trading activity alone, matching the previous highs seen in March 2020. If you remember, March 2020 saw the worst of the COVID crash that dominated investor sentiment last year.

Which ASX ETFs got the most love from investors?

The ETFs which experienced the highest fund inflows in September were:

1. BetaShares Australian High Interest Cash ETF (ASX: AAA) with $361.68 million in inflows
2. iShares Core S&P/ASX 200 ETF (ASX: IOZ) with $313.01 million
3. Vanguard Australian Shares Index ETF (ASX: VAS) with $195.41 million

Meanwhile, the top-performing ETFs over September were:

1. ETFS Ultra Short Nasdaq 100 Hedge Fund (ASX: SNAS), up 14.1% over the month
2. BetaShares US Equities Strong Bear Hedge Fund (ASX: BBUS), up 11.4%
3. BetaShares Crude Oil Index ETF (ASX: OOO), up 9.8%

Interestingly, the top two performers were geared (leveraged) inverse ETFs, which are designed to rise in value when the broader markets fall. That makes sense since the US markets had a pretty dreadful month over September, as did the ASX 200. BetaShares characterised this trend as investors “buying the dip” using ETFs.

If the ETF sector keeps growing even when markets are falling, it certainly bodes well for its future.

The post ASX ETF sector continues to boom and hit record highs appeared first on The Motley Fool Australia.

More reading

• Cannon (ASX:CNR) share price rockets 39% on first drill results
• Star Entertainment (ASX:SGR) share price surges despite police probe
• ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump
• Zip (ASX:Z1P) share price on watch after broker downgrade
• 2 ASX shares that doubled our money in a month: expert

Motley Fool contributor Sebastian Bowen 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 Core Lithium Ltd (ASX: CXO) share price is surging 15% higher today and currently trades at 48.5 cents apiece.

Shares in the lithium explorer have now rallied 21.5% in the past week, against a backdrop of strong commodity markets and recent project developments.

While there has been no market sensitive information for the company today, it’s worthwhile diving a little deeper to understand what’s behind the gains today.

Why is the Core Lithium share price climbing 14%?

News last month that the company made its final investment decision regarding the Finnis Lithium Project wasn’t enough to spike Core Lithium’s shares at the time.

The company expects the maiden production of lithium to commence by the end of 2022 and the project is fully funded after recent injections of capital.

Its shares traded sideways until the start of October when investors began bidding up their price again.

One factor that could be lighting a fire under the Core Lithium share price is the premium that lithium is fetching in the spot and futures markets.

Lithium shares have been hot contenders on the ASX this year with lithium prices soaring more than 300% in the last 12 months to now trade at A$34,882.35/tonne.

Lithium contracts popped again in August. At this time, the rate of change triggered another 100% jump in pricing to reach all time highs of A$37,630.66 just two days ago.

This was after an 8% jump over the weekend to roll into the start of trade on Monday.

Core Lithium’s exposure to the silvery-white metal means that its share price can and does fluctuate with volatility in the broader commodity markets.

That’s because it is a price taker that must accept the going rates for the markets it sells into. As much is true for all ASX resource companies that produce a commodity.

With this in mind, it makes sense as to what might be fuelling investors’ buying activity today.

And the strengths appear to be carried through the broader sector as well. The Battery Tech & Lithium ETF (ASX: ACDC) – a good proxy to gauge growth in the industry – is also climbing 1.2% higher so far today.

Core Lithium share price snapshot

The Core Lithium share price has soared this year to date, posting a gain of 234% since January 1.

This extends its gain over the past 12 months to 870%, a whole solar system away from the S&P/ASX 200 Index (ASX: XJO)’s return of about 20% in that time.

The post Why is the Core Lithium (ASX:CXO) share price surging 15% today? appeared first on The Motley Fool Australia.

More reading

• Own ASX lithium shares? Here’s what the IMF is predicting for the sector
• ASX lithium shares lift as spot prices hit all-time highs
• Here’s why the Core Lithium (ASX:CXO) share price is lifting today
• Core Lithium (ASX:CXO) share price lifts amid bosses’ optimistic outlook
• ASX lithium shares are rallying across the board today. Here’s why.

The author Zach Bristow 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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,278.2 points.

Four ASX shares that are falling more than most are listed below. Here’s why they are dropping:

Bank of Queensland Limited (ASX: BOQ)

The Bank of Queensland share price is down 5% to $9.25. Investors have been selling the regional bank’s shares following the release of its full year results. Although the bank delivered an 83% increase in cash net profit after tax to $412 million, its outlook appears to have spooked investors. Management warned that it expects its net interest margin to decline by ~5 to 7bps in FY 2022. This is due to competition and the low interest rate environment.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 5% to $14.07. This appears to have been caused by weakness in iron ore prices overnight. According to CommSec, the spot benchmark iron ore price tumbled US$8.45 or 6.2% to US$128.50 a tonne during overnight trade. Low grade iron ore prices also tumbled along with the benchmark price.

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price is down 3.5% to $1.40. This may have been driven by profit taking from some investors. After all, prior to today, the lithium developer’s shares were up a massive ~250% since the start of the year. Earlier this week Liontown spun off its gold operations via an IPO.

Pact Group Holdings Ltd (ASX: PGH)

The Pact share price has sunk 11% to $3.05. This morning the packaging company released a trading update which revealed that it has had a mixed start to the year. While some sides of the business are performing well, the Contract Manufacturing (CM) segment is underperforming. In light of the latter, the company has decided against selling the CM business as it doesn’t believe it will get a fair price in the current environment.

The post Why Bank of Queensland, Fortescue, Liontown, & Pact shares are dropping appeared first on The Motley Fool Australia.

More reading

• The Minerals 260 (ASX:MI6) share price has lost 28% since yesterday’s open
• Here’s why ASX hydrogen shares are leaping higher today
• ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump
• Why the Pact Group (ASX:PGH) share price is sinking 15% today
• Bank of Queensland (ASX:BOQ) share price tumbles 4% on FY 2021 results

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 Minerals 260 Ltd (ASX: MI6) share price has been losing momentum the minute it debuted on the ASX.

The new company is a spin-off of Liontown Resources Limited (ASX: LTR) and its non-core lithium assets.

Minerals 260 had a successful oversubscribed initial public offering (IPO), raising $30 million at a listing price of 50 cents per share.

It made its way to the ASX at 1:00 pm on Tuesday, opening as high as 74.5 cents.

Traders might have used its strong open as an opportunity to offload shares. After all, who wouldn’t want to lock in a 50% gain?

The Minerals 260 share price closed at 60 cents on Tuesday, a 20% return for those who managed to participate in the IPO but a 20% decline from its opening price.

Its share price has continued to crater on Wednesday, sliding 13.33% at the time of writing to 52 cents.

Why the Minerals 260 share price is plunging

It’s not uncommon for IPOs to fizzle out after listing, especially if there’s a lot of hype surrounding the company.

Take Zoom2u Technologies Ltd (ASX: Z2U) for example. The delivery Software as a Service (SaaS) company closed at 43 cents on its first day of listing after an IPO offer price of just 20 cents.

It would continue to rally for the next 5 trading days, reaching highs of 83.5 cents.

Just two weeks after its all-time high, the Zoom2u share price almost halved, trading at around 45 cents.

A similar narrative has applied to a number of recent IPOs including high profile listings such as Li-S Energy Ltd (ASX: LIS), Global Lithium Resources Ltd (ASX: GL1) and Airtasker Ltd (ASX: ART).

Some of these listings have managed to climb and surpass prior highs, while others have continued to trade sideways for quite some time.

Fortunately for the Minerals 260 share price, it’s currently trading just above its listing price.

The post The Minerals 260 (ASX:MI6) share price has lost 28% since yesterday’s open appeared first on The Motley Fool Australia.

More reading

• Minerals 260 (ASX:MI6) share price leaps 36% following IPO
• ASX lithium shares lift as spot prices hit all-time highs
• Minerals 260 (ASX:MI6) shares set to hit ASX boards today
• Liontown (ASX:LTR) share price lifts ahead of Minerals 260’s IPO
• How did ASX lithium shares perform in the FY22 first quarter?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. 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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