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The Telstra Corporation Ltd (ASX: TLS) share price’s worst day ever was spurred by the company’s plans to slash its dividends.

On 17 August 2017, Telstra released its earnings for financial year 2017 and the outcome of a capital allocation strategy review.

As a result, the telecommunication giant’s stock fell 10.6% to finish the day’s session at $3.87. That represented a new 5-year low and the worst fall Telstra’s shares have ever experienced.

Of course, $3.87 isn’t out of the ordinary for Telstra’s stock in 2021. At the time of writing, the Telstra share price is $3.91, 0.26% higher than its previous close.

So, what exactly spurred Telstra’s shares to drop 10.6% in a single session? Let’s take a look.

The Telstra share price’s worst day ever

The Telstra share price’s worst day on the ASX was spurred by the company’s plan to slash future dividends.

Telstra announced it would be cutting its future dividends on the back of its capital allocation strategy review.

Historically, Telstra’s dividends represented 100% of its underlying earnings. But after financial year 2017, the company cut them to between 70% and 90% of its underlying earnings.

Thus, Telstra’s total dividends for financial year 2018 were expected to be worth 22 cents.

In fact, they came in at 15 cents. Though, that figure doesn’t include two 3.5 cent special dividends which we will get to in a moment.

Dropped dividends weren’t the only outcome of Telstra’s capital allocation strategy review.

The telco also announced it planned to monetise around 40% of its NBN receipts. It expected the move would bring in between $5 billion and $5.5 billion of cash.

That cash would go towards paying off around $1 billion of debt. The rest would enhance shareholder returns, likely through share buybacks.

Additionally, Telstra announced that, in the future, it hoped to return around 75% of the value of one-off NBN receipts to shareholders through special dividends.

However, NBN Co rejected Telstra’s plans to monetise its NBN receipts on 30 August 2017. Again, the news was to the detriment of the Telstra share price which fell 6% that day.

That meant Telstra’s future plans were brought forward. Telstra began to give back some of the value of its off-of NBN receipts to shareholders in 2018 when it provided two 3.5 cent special dividends.

Telstra also released its earnings for financial year 2017 on 17 August 2017. They included modest increases to the company’s revenue, earnings before interest, tax, depreciation, and amortisation (EBITDA), and net profit after tax.

The post When was the worst ever day on the Telstra (ASX:TLS) share price chart? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns 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 Commonwealth Bank of Australia (ASX: CBA) share price is a top performer on Monday after the company announced the completion of its $6 billion off-market buy-back.

At the time of writing, the CBA share price is up 3.92% to $104.

According to CBA’s initial buy-back announcement, management described it as the “most efficient and value-enhancing strategy to distribute CBA’s surplus capital and franking credits.”

CBA share price jumps on off-market share buy-back

The transaction will enable CBA to buy 67.7 million shares from investors or 3.82% of its shares on issue.

The buyback will apply a 14% discount on shares with a market price of $103.05.

Participating investors will receive $88.52 for each share, including a $21.66 capital component and a full-franked dividend of $66.96.

According to the release, the buy-back was scaled back by 79.4% “due to strong demand”.

The scale back was planned to “minimise disadvantaging shareholders with a small number of shares”.

Applicants who would be left with 20 shares or less as a result of the scale back would receive their full allocation instead.

It is understood that the buy-back will reduce CBA’s CET1 capital ratio by ~133 basis points (based upon 30 June 2021 reported capital).

What’s next for CBA investors?

The statement said that payments for the buy-back will commence from Friday, 8 October.

“Payments will be made via direct credit and a statement will also be sent out from this date.”

What happened to CBA last Friday?

The CBA share price has recouped last Friday’s losses after it plunged 4.07% to $100.08.

The sharp decline was led by broad-based selling across the market, where the S&P/ASX 200 Index (ASX: XJO) tumbled 2% to a 4-month low of 7,185.

In addition, investors might want to pay attention to the Australian Bureau of Statistics’s (ABS) latest new loan commitments data.

Last Friday, the ABS revealed that new loan commitments, from a month-on-month perspective, declined 4.3% for housing and 2.5% for personal fixed term loans.

The post CBA (ASX:CBA) share price jumps following $6 bn share buy back completion appeared first on The Motley Fool Australia.

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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 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 Auking Mining Ltd (ASX: AKN) share price is soaring into the green during afternoon trade today and now trades at 29.5 cents apiece.

Auking shares are on the move after the company announced a key update at its flagship Koongie Park copper/zinc project.

Here’s what we know out of the resource exploration company’s camp today.

What did Auking Mining announce today?

The Auking Mining share price has jumped today after the company announced the first assay results had been obtained from its drilling program at Koongie Park, located in the Kimberly, WA.

The results indicate “high-grade, near surface c copper, zinc, silver, and other mineral intersections across all holes drilled”.

Each of the 5 drill holes were performed using reverse circulation (RC) drilling at the Onedin deposit, with no assays undertaken for the presence of gold.

Specifically, Auking advises the results show a “124 metre, continuous near-surface, high-grade zone of > 1% grade copper, lead and zinc mineralisation”.

It also contains high-grade silver mineralisation and molybdenum, despite limited evidence of the latter being displayed from previous activity at the site.

As the hole was terminated at 132 metres “for water bore purposes”, Auking will now extend the hole depth by a further 170 metres to attempt to intersect the mineralisation at a further depth.

Regarding the results, Auking Mining CEO Paul Williams appeared encouraged.

Speaking on the announcement, Williams said:

These first assay results from initial drilling at Koongie Park are very encouraging and provide a strong
foundation for our future activities at this project… AKN continues to make strong progress with its drilling program at Koongie Park and we look forward to presenting further results over the next couple of months.

Shareholders appear encouraged too, as the Auking Mining share price has climbed a further 40% into the green since the market open today.

Auking Mining share price snapshot

The Auking Mining share price has skyrocketed almost 64% in the last month, after the company listed on the ASX in June of this year.

Prior to this, it was trading flat at around 20 cents apiece but has stepped well ahead of the broad indices this past few weeks.

At the time of writing, Auking Mining has a market capitalisation of $12.66 million.

The post Auking Mining (ASX:AKN) share price rockets 40% on mineral update appeared first on The Motley Fool Australia.

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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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The Metalstech Ltd (ASX: MTC) share price is soaring 14% into the green during this afternoon’s session and now trades at 75.5 cents.

Metalstech shares are on the move after the lithium and cobalt exploration company announced a key update today regarding its gold mine in Slovakia.

Here’s what we know.

What did Metalstech announce?

Metalstech gave details of what it called a “bonanza gold hit” at its Sturec Gold mine in Slovakia.

The company has now completed two diamond drill holes at the site, aimed at “increasing confidence in the mineralisation zone” outside the existing Sturec resource.

One of the drill holes, UGA-18, intersected a thick, mineralised zone “for an extraordinary 622 ‘grams-metres’ including higher grade zones”.

This resulted in a “new record bonanza result” 81 metres downhole from the second drill hole at the site.

Today’s announcement follows a similar announcement from the first drill hole at the site, UGA-17, last week. Assay results from this hole offer basically the same benefits to the Sturec site, as per the company.

Metalstech is confident that the assay results obtained from UGA-18, alongside the assay result in UGA-17, offers “strong confidence to the mineralised zone interpretation” to the existing Sturec resource.

The company is also finalising a report on the metallurgical test work, which investors can expect to see released next week, per the release.

One important factor is that the “intersections are not a true thickness, as the drill hole was drilled at an angle to the mineralised zone due to the location of the underground drill site relative to the target zone”.

Additional drilling is therefore necessary to “better constrain the interpretation”, as per Metalstech.

The company itself certainly appears happy, with chairperson Russel Moran saying:

Sturec is shaping up to be an extraordinary deposit with bonanza grade potential…we are hopeful we will continue to hit these incredible mineralised ones which can expand on and help grow what is already a very exciting and significant gold resource.

Shareholders appear to agree too and are buying Metalstech in droves today, despite the price of gold coming off 3 previous highs since June to trade at US$1,764.93/t.oz.

Metalstech share price snapshot

The Metalstech share price has been a major winner on the ASX this year, booking a gain of 268% since January 1. It’s rallied over the past month by over 179% and gained another 29% this past week.

This extends its return over the past 12 months to 372%, well ahead of the S&P/ASX 200 index (ASX: XJO)’s gain of about 25% in this time.

The post Metalstech (ASX:MTC) share price soars 17% on record gold hit appeared first on The Motley Fool Australia.

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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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Peter Overton on Nine’s Late News on Sunday night to discuss the big economic week ahead, including an RBA board meeting, new car sales, jobs data, international trade and more…

The post The week ahead: RBA meeting, new car sales, and jobs data. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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Motley Fool contributor Scott Phillips 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 Webjet Ltd (ASX: WEB) share price joins the list of bullish travel and airline shares on Monday, trading at levels not seen since late March last year.

At the time of writing, Webjet shares are up 4.95% to $6.79.

Webjet share price re-rates on Australian travel optimism

The travel industry is gathering momentum amid hopes of reopened borders as soon as next month.

Prime Minister Scott Morrison announced last Friday that international borders are set to reopen in November for states that reach the 80 per cent vaccination prerequisite.

The government is finalising new arrangements for fully vaccinated Australians and permanent residents arriving in NSW. It’s expected arrivals will be able to home quarantine for a week instead of being forced into an expensive two-week hotel quarantine.

Mr Morrison said that “once changes are made in November, the current overseas travel restrictions related to COVID-19 will be removed and Australians will be able to travel subject to another travel advice and limits”.

The positive news helped the Webjet share price withstand the sharp selloff last Friday when the S&P/ASX 200 Index (ASX: XJO) plunged 2%.

White House to lift travel restrictions by November

Similarly, the White House announced on 23 September that it will also be lifting travel restrictions for fully vaccinated travellers from select countries.

The list of 33 countries includes China, India, Brazil and most of Europe. Unfortunately, Australia was not one of them.

Nonetheless, the Webjet share price still rallied 5.22% to $6.25 on the day of the announcement.

International travel stocks jump last Friday

The US Global Jets Exchange Traded Fund (ETF) rallied 5.33% on heavy volume to a 3-month high last Friday night.

By US market close, 15.9 million shares had traded hands compared to the ETF’s 10-day average of 8.8 million.

The Jets ETF tracks an index of companies involved in the air travel industry, including airline operators, airports and terminal services. The bulk of its holdings are in US-listed airlines, with smaller allocations in the likes of Sydney Airport Holdings Pty Ltd (ASX: SYD) and Qantas Airways Limited (ASX: QAN).

The post Up 5%, the Webjet (ASX:WEB) share price is back to March 2020 levels. Here’s why appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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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It’s been a bumpy ride for CSL Limited (ASX: CSL) shareholders this past 6 months.

For those who can’t stomach extreme volatility, CSL shares wouldn’t have been an appropriate choice over the last half year.

Nonetheless, CSL shareholders have been rewarded with a 10% return for holding in this time – almost double the S&P/ASX 200 index (ASX: XJO)’s gain of 5.7%.

Let’s take a closer look at the trek CSL shares have been on lately.

How has the CSL share price performed this past 6 months?

All in all, CSL shares have climbed $27 per share since April and now trade at $290, after sailing through choppy waters.

After rallying from $263 to $305 in months from April to June, a broker downgrade out of investment bank giant Citibank appears to have plagued the biotechnology company’s share price at that point.

It fell sharply from the peak in June to a low of $275 by the following month. It popped again in mid-July after it appointed a new non-executive director, and then again in August after the release of its FY21 results.

In its earnings report, the company outperformed on guidance. It grew revenue 10% year on year to $10 billion and net profit by 10% as well to $2.3 billion – well above guidance of 3% to 8% growth.

CSL shares have been on the move since this event, nearly reaching their 52-week high by the end of September.

However, the CSL share price has taken a step backwards since then, in line with a selloff in the broader markets.

For instance, CSL shares have given away 7% this past month, whereas, at last check, the S&P/ASX 200 Health Care index (XHJ) has also slipped over 6% in this time.

Most of this has occurred in the last few weeks, where CSL shares have slipped over 7% since 23 September, in line with the broad index.

In light of this, it’s clear to see that it’s been a bumpy ride for CSL shareholders this past 6 months, with big swings in the value of their holdings.

Zooming out the CSL share price

Taking a longer-term view, the situation appears very much the same. The CSL share price has gained 2.4% this year to date, and 1.9% over the last 12 months.

Looking at its chart, however, over this time, there are big swings in price and a wide 12-month range of $316.68 to $246.

After rallying over the past 2 months, CSL’s share price has cooled off lately and currently trades at its July 2021 levels of $290.

The post It’s been a rollercoaster for the CSL (ASX:CSL) share price over the last 6 months appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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 Xtek Ltd (ASX: XTE) share price is freefalling on Monday following the company’s update on its latest equity raise.

At the time of writing, the defence contractor’s shares are fetching for 28 cents, down 23.29%.

What did Xtek announce?

Investors are heading for the hills after Xtek shares came out of a trading halt today.

According to an announcement this morning, Xtek advised it has successfully completed an underwritten institutional placement. The offer received interest from both new and existing institutional investors, raising $2.7 million.

Xtek will issue around 10.4 million ordinary shares under the placement. The price for each share is set at 26 cents apiece, reflecting a 28.8% discount to the last closing price of 36.5 cents on 29 September.

Settlement of the shares is expected to occur on 8 October with allotment and commencement of trading on 11 October.

In addition, Xtek will also make a 1 for 3.7 pro-rata non-renounceable entitlement offer to all eligible security holders. The partially underwritten placement is seeking to raise a further $5 million on the same terms.

Approximately 19.2 million new shares will be added to the company’s registry.

The record date is scheduled to fall on Thursday, 7 October.

In total, $7.7 million will be raised to fund a number of initiatives for Xtek. These include:

• Development of an Australian-made small VTOL Unmanned Aerial Vehicles (UAV) for upcoming sales opportunities with the Australian Defence Force;
• Development of the next XTatlas actionable intelligence software applications;
• Expansion of the range of hard armour plates and helmets made using its patented XTclave process; and
• Provision of working capital required to grow the company’s business and meet ongoing financial obligations.

Xtek share price review

It’s been a woeful year for Xtek shares. They’ve gradually moved more than 50% lower over the past 12 months. It’s worth noting the company’s shares are currently trading at multi-year lows today.

Xtek presides a market capitalisation of about $19.89 million and has just over 71 million shares on its books.

The post Xtek (ASX:XTE) share price sinks 23% on capital raising efforts appeared first on The Motley Fool Australia.

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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 Fortescue Metals Group Limited (ASX: FMG) share price went on a disappointing run last month. This comes as the price of iron ore continued to sink amid pressure from Chinese policymakers to reduce dependence on Australia.

While the S&P/ASX 200 Index (ASX: XJO) is up 1.05% to 7,260 points today, Fortescue shares are down 1.24% to $14.39 apiece.

What’s dragging Fortescue shares lower?

Iron ore is currently fetching US$115.76 a tonne, plunging 19% since the beginning of September.

The Fortescue share price has trodden along the same lines, falling 30% over the same time.

Chinese lawmakers introduced new rules for its steel producers in an effort to curb reliance on Australian iron ore. Steel mills were instructed to limit 2021 output to no more than 2020 levels, or face penalties.

China wants its steel industry to halt iron ore production at roughly 1 billion tonne for 2021. Consequently, Chinese crude steel production has dropped 8% in July and 13% in August. September figures are still being compiled.

Nonetheless, the result has led the price of iron ore to shrink. And fears are mounting that it could reach as low as US$70 by the end of the year. This would essentially cut more than half of Fortescue’s profits when it was enjoying above US$200 for iron ore.

In addition, broader market weakness has been a hindrance on Fortescue shares. The ASX 200 benchmark index dropped about 3.2% in a month, and 4.6% off its record high of 7,632.8 points.

Fortescue share price snapshot

Up until the end of July, Fortescue shareholders were enjoying strong gains, hitting an all-time high of $26.58 apiece. That all came crashing down in the last two months, with its shares touching a low of $14.15 in late September.

Comparing to this time last year, Fortescue shares are down 10%, with year-to-date losses reaching 40%.

On valuation metrics, Fortescue commands a market capitalisation of roughly $44.86 billion and has approximately 3.1 billion shares on issue.

The post Why did the Fortescue (ASX:FMG) share price have such a lousy month in September? appeared first on The Motley Fool Australia.

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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 Intega Group Ltd (ASX: ITG) share price is soaring to new heights after the company entered a scheme implementation deed for a proposed takeover.

Intega has received a takeover bid that would see 100% of its shares bought for 90 cents apiece. The offer is a 58% premium on the Intega share price’s previous close and a 95% premium on its last undisturbed close.

That values the company at around $421 million. For context, Intega’s previous close saw it with a market capitalisation of around $238 million.

Unsurprisingly, the bid has sent Intega’s stock to a new record high.

At the time of writing, the Intega share price is 88 cents, 54.39% higher than its previous close and the highest the company’s stock has ever been.

Let’s take a closer look at the proposition posed to the engineering services provider.

Intega enters takeover agreements

The Intega share price is rocketing higher today as the company moves forward with a lavish acquisition offer.

The company posing the 90 cents bid is Kiwa NV, a Dutch company that provides testing, inspection, and certification services to businesses.

The companies have now entered a scheme implementation deed – the first step towards seeing the takeover realised.

Intega says the scheme implementation deed is the result of a strategic review the company undertook into its business.

Intega recommends its shareholders vote in favour of the scheme, as long as it doesn’t get a better offer.

Further, the company’s largest shareholder, Crescent Capital Partners Shareholders, has confirmed it will vote in favour of the takeover. Crescent Capital Partners Shareholders owns 52.1% of Intega’s shares

Making the takeover bid more exciting is the prospect of a special dividend.

If the takeover is delayed beyond December 2021 because Kiwa doesn’t receive Foreign Investment Review Board approval in time, it may have to pay Intega shareholders a special dividend.

That could see $2.3 million paid to Intega shareholders for each month the takeover is delayed between January 2022 and June 2022.

Commentary from management

Intega’s chair Neville Buch commented on the news:

The scheme provides an opportunity for Intega shareholders to realise their investment in Intega for cash at an attractive premium to where Intega has traded since its demerger from Cardo in 2019. After undertaking a comprehensive strategic review, the Intega board has concluded that the scheme is compelling for our shareholders.

 Intega share price snapshot

Today’s gains included, the Intega share price is 218% higher than it was at the start of 2021.

The company’s stock is also trading for 236% more than it was this time last year.

The post Intega (ASX: ITG) share price leaps 54% on takeover news appeared first on The Motley Fool Australia.

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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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