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The Allegiance Coal Ltd (ASX: AHQ) share price is on the move today following a trading update from the company.

Earlier today, the coal miner’s shares were up 7.21% to an intraday high of 59.5 cents. They have since partially retreated and are swapping hands for 56.5 cents apiece, a 3.67% gain on yesterday’s closing price.

What did Allegiance announce?

Investors are pushing the Allegiance Coal share price higher after the company updated its near-term production guidance from its Black Warrior and New Elk mines.

By November 2021, clean coal production from both its high-vol A hard coking coal Black Warrior mine and the high-vol B coking coal New Elk mine is forecast to exceed 100,000 tonnes per month. However, in the 2022 calendar year, this number is expected to reach 120,000 tonnes per month, slightly under an annualised rate of 1.5 million tonnes.

The improved guidance comes off the back of the Black Warrior mine in Alabama ramping up clean coal production efforts. Allegiance stated its strategy is to increase production from the mine, and transition from a domestic to an export focus.

The company is acquiring new large-scale mining equipment, as well as adding a night shift to increase production. The new excavator is expected to remove three times as much waste rock as the mine’s existing 3 excavators. In addition, 4 new 200-tonne haul trucks are set to replace some of the 18 60-tonne fleet.

Investors seem to have reacted positively to this news, pushing up the Allegiance Coal share price.

What’s happening at the New Elk mine?

The company also provided an update on its New Elk mine. It noted the start-up has been slower than planned due to some of the workforce contracting COVID-19 and the shortage of housing near the mine.

Discussions are currently being held with the mayor’s office of the City of Trinidad to create an immediate housing capacity. It’s projected the issue will be solved by the end of the year.

The mine has one production unit manned, but the second unit has been unable to restart so far. New employees are due to arrive on site this week to begin operations.

As a result, there’s been a delay in the shipment of 280,000 tonnes of coking coal to Asian steel mills. The first of four shipments are scheduled for completion this December, with the remainder in Q1 2022.

About the Allegiance Coal share price

Over the past 12 months, Allegiance shares have tracked upwards of 70%, with year-to-date gains of close to 50%. The Allegiance Coal share price reached a 52-week high of 78 cents in June before some profit-taking took place.

Based on today’s price, Allegiance commands a market capitalisation of around $195.6 million and has roughly 329 million shares outstanding.

The post Why the Allegiance Coal (ASX:AHQ) share price is climbing today appeared first on The Motley Fool Australia.

More reading

• Why APA, Kathmandu, Nickel Mines, & Sigma shares are dropping
• The Magellan (ASX:MFG) share price just hit another 52-week low, down 17% in a month
• Qantas (ASX: QAN) share price higher as US plans to open air travel
• Why this broker sees ~50% upside in the A2 Milk (ASX:A2M) share price
• How could a share market correction impact cryptocurrencies like Bitcoin?

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 S&P/ASX 200 Index (ASX: XJO) has returned to form on Tuesday. In afternoon trade, the benchmark index is up 0.3% to 7,268.4 points.

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

APA Group (ASX: APA)

The APA share price is down 5.5% to $8.37. This morning the company revealed that it has made a takeover approach for electricity distributor AusNet Services Ltd (ASX: AST). APA’s non-binding indicative proposal is $2.60 per share in cash and scrip. This compares to the $2.50 per share offer made by Brookfield Asset Management on Monday. However, APA will have to wait its turn. AusNet has granted Brookfield eight weeks of exclusive due diligence.

Kathmandu Holdings Ltd (ASX: KMD)

The Kathmandu share price is down 2% to $1.40. This follows the release of the adventure retailer’s full year results this morning. Kathmandu reported a 15.1% increase in sales to NZ$922.8 million and a 110.2% lift in underlying net profit after tax to NZ$66.3 million. However, taking the shine off the result was its outlook. Management warned that in FY 2022 it was battling lockdowns, weak trading in airport locations and emerging markets, and faced supply chain headwinds.

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price is down a further 4% to 95.5 cents. Investors have been selling this nickel producer’s shares this week due to reports of potential tax changes in Indonesia. Nickel Mines notes that on Friday, the Indonesian Investment Minister was reported as suggesting that Indonesia is exploring the possibility of levying an export tax on nickel products with less than 70% nickel content.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is down 2% to 61.5 cents. This follows the release of the pharmacy chain operator and distributor’s half year results this morning. Although Sigma delivered solid top and bottom line growth, it downgraded its full year guidance. Management is expecting EBITDA growth of just 5% in FY 2022. This compares to its target for an average of ~10% per annum in FY 2022 and FY 2023.

The post Why APA, Kathmandu, Nickel Mines, & Sigma shares are dropping appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• Sigma (ASX:SIG) share price sinks 7% on half year update and guidance downgrade
• ASX 200 (ASX:XJO) midday update: APA makes AusNet bid, New Hope results impress
• Kathmandu (ASX:KMD) share price slumps despite 36% earnings surge
• AusNet (ASX:AST) share price to rise after APA (ASX:APA) starts bidding war

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 APA Group. 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 Magellan Financial Group Ltd (ASX: MFG) share price is struggling again today.

So much so, that it hit a new 52-week low of $37.31 in intraday trade.

At the time of writing, the Magellan share price is $37.63, 2.71% lower than its previous closing price. Today’s fall follows the fund manager‘s stock’s 2% plunge yesterday.

In comparison, the broader market has seemingly recovered from its disastrous start to the week.

After falling 2.1% yesterday, the S&P/ASX 200 Index (ASX: XJO) spent much of this morning in the red before pulling up this afternoon. Right now, it is 0.15% higher.

Similarly, the All Ordinaries Index (ASX: XAO) has recovered to trade 0.15% higher than its previous close.

So, what’s been weighing so heavily on the Magellan share price today? Let’s take a look.

What’s dragging the Magellan share price down?

Magellan’s stock has plummeted again today despite no news having been released by the fund manager.

However, as The Motley Fool Australia reported yesterday, the fund has been underperforming as China has cracked down on some of its major holdings.

Additionally, Magellan has retained its high fees amid its struggles and a number of analysts have downgraded the fund’s stock in recent months.

Market watchers might have had hope Magellan’s funds under management update for the month of August, released just over a fortnight ago, could have seen its stock recovering once more.

Magellan’s funds under management increased 0.79% over the month of August, reaching $117.95 billion worth.

However, the market seemingly wanted more from Magellan, evidenced by its share price’s 0.6% dip on the day of the announcement.

Though, this last month’s poor performance isn’t out of trend for Magellan. The Magellan share price has fallen 29% since the start of 2021, despite what looks to be a slight recovery over May and June.

In fact, it has been falling relatively steadily since mid-November 2020, a month after it hit its 52-week high of $64.44.

The post The Magellan (ASX:MFG) share price just hit another 52-week low, down 17% in a month appeared first on The Motley Fool Australia.

More reading

• What’s going wrong for the Magellan (ASX:MFG) share price lately?
• Top brokers name 3 ASX shares to sell next week
• The Magellan (ASX:MFG) share price hit a 52-week low this week. Do brokers think it’s a buy?
• Why the Magellan Financial (ASX:MFG) share price is down 21% in a month
• Magellan (ASX:MFG) share price slumps on FUM update

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 Qantas Airways Limited (ASX: QAN) share price is a top performer on Tuesday, rallying 2.60% to a 6-month high of $5.52.

Global travel shares managed to edge higher overnight, with the US Global Jets ETF closing 0.62% higher.

The Jets ETF provides investors exposure to the global airline industry, including airline operators and manufacturers from all over the world. Some of its smaller allocations include Sydney Airport Holdings Pty Ltd (ASX: SYD) and Qantas shares.

What’s driving the strength behind travel shares?

The Qantas share price and broader travel industry appear to be rallying in response to a sweep of changes to US travel policies.

According to Bloomberg, the White House announced on Monday that it will soon allow entry to most foreign air travellers, as long as they’re fully vaccinated.

The new policies will replace the US’s current outright ban on entry from most foreign nations including the United Kingdom, Southern Europe, China, India, South Africa and Brazil, regardless of vaccination status.

The new policy is expected to take effect in early November, but no specific date has been set.

US-listed airlines such as American Airlines and Delta Airlines welcomed the news, rallying 3.04% and 1.67% respectively on Monday.

Qantas share price tests 6-month highs

The Qantas share price has largely been range bound since November last year, struggling to break above $5.80 but finding plenty of bidders at the low $4 level.

Qantas has rallied strongly in the past three weeks, adding almost 30% since 20 August. At the time of writing, Qantas shares are trading for $5.50, up 2.32%.

Its performance has been propped up by an optimistic FY21 results announcement in addition to its plans to relaunch international flights by mid-December.

Qantas said it plans to open services to London, Los Angeles, Singapore, Vancouver by 18 December, subject to pending border openings and vaccination targets.

The post Qantas (ASX: QAN) share price higher as US plans to open air travel appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price gains amid $20 flights resting on domestic reopening
• How have these 3 ASX 200 travel shares performed since reporting results?
• Is it too late to buy Qantas (ASX:QAN) and other ASX travel shares?
• Qantas (ASX:QAN) share price lifts on oversubscribed bond refinance update
• Qantas (ASX:QAN) share price reverses day’s losses as first international flights scheduled

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 A2 Milk Company Ltd (ASX: A2M) share price is out of form again on Tuesday.

In afternoon trade, the embattled infant formula company’s shares are down 2% to $5.25.

This leaves the A2 Milk share price trading within sight of its multi-year low of $5.04.

Is the A2 Milk share price weakness a buying opportunity?

According to a recent note out of Bell Potter, its analysts see a lot of value in the A2 Milk share price.

The note reveals that its analysts have retained their buy rating but trimmed their price target from $8.50 to $7.70.

Based on the current A2 Milk share price, this implies potential upside of 47% over the next 12 months.

What did the broker say?

While Bell Potter acknowledges that FY 2021 was a very disappointing year and near term trading will remain tough, it appears optimistic that a change of fortune is coming.

This is partly due to the work the company has done to manage its inventory.

It explained: “[Our] analysis would tend to imply that channel inventories across the board have been reduced and this is in line with comments that English label channels are now in line with A2M expectations and China inventories only modestly above.”

“We think the market is underestimating the impact that inventory swaps and sales pullbacks [had] on FY21 and while this is unlikely to be recovered in FY22e, it gives a glimpse of the relative FY21 under earn relative to baseline. As YOY comparisons become softer in 2H22e and with inventory positions reduced we would anticipate a resumption of top line growth to ensue,” the broker added.

FY 2022 and FY 2023 forecasts

In light of this, the broker expects a 10.3% increase in sales to NZ$1,332 million and EBITDA of NZ$212.8 million in FY 2022. After which, Bell Potter is forecasting a 10.5% lift in sales to NZ$1,472 million and a 21.3% increase in EBITDA to NZ$258.2 million in FY 2023.

Based on these forecasts, the broker believes the A2 Milk share price is good value at the current level.

It concluded: “Our Buy rating remains unchanged. Sell-in rates materially lagged sell-out rates in 2H21, implying steps to reduce channel inventories have been effective. As revenues more closely align to point of sale trends we would expect top line growth to return, which could well be complemented by internalising supply chain costs in FY23-25e.”

The post Why this broker sees ~50% upside in the A2 Milk (ASX:A2M) share price appeared first on The Motley Fool Australia.

More reading

• A2 Milk (ASX:A2M) share price falls 3% to 3-month low
• A2 Milk (ASX:A2M) share price rises despite bearish broker note
• Top brokers name 3 ASX shares to sell next week
• How does the A2 Milk (ASX:A2M) share price compare to the ASX 200 today?
• Why A2 Milk, Flight Centre, Medibank, & St Barbara shares are dropping

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 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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With the S&P/ASX 200 Index (ASX: XJO) having lost close to 5% since its last peak back in mid-August, many investors are inevitably talking about the possibility of an upcoming market correction, or even crash.

Every investor knows that we can’t enjoy the good times without the occasional bout of market fear. And given the stellar year and a bit that ASX investors have now enjoyed, it’s not too inconceivable to expect some choppy waters going forward.

Now, we all know how the share market fares when there’s fear in the hearts of investors. Cast your minds back to March 2020, and we saw the ASX 200 lose a devastating ~36% in just over a month. Of course, we got that all back and then some in the months following this COVID-induced crash.

But how do cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) fare in times of market stress?

Well, since cryptocurrencies have only really been around for roughly a decade (even less in the mainstream investing consciousness), we used to only be able to guess at how the crypto markets might respond to an event like a share market correction.

Some Bitcoin bulls pointed to its similarities with gold, a traditional safe-haven asset that often gets a boost during fear-dominant events. Others point to its speculative nature as evidence that Bitcoin and other cryptos would get wiped out in a crash. Speculative investments are usually the first things nervous investors bail out of.

Well, now that the 2020 market crash is firmly in the rearview mirror, we can actually paint a fairly broad picture of how cryptos might perform in a market correction or crash.

How did cryptocurrencies like Bitcoin fare in the 2020 share market crash?

So let’s do the math.

The ASX 200 lost around 36% of its value between 20 February and 23 March last year. Let’s see how Bitocin performed.

So Bitcoin was trading at roughly US$10,350 per coin back in mid-February 2020 (hard to believe, I know), according to tradingview.com. But the cryptocurrency was not immune to the share market selloff that late February and early March brought us.

By 12 March 2020, the crypto found its bottom after 2 weeks of heavy selling. It ended up bottoming out at a price of roughly US$4,875 a coin. That represents a fall of approximately 52.9% peak-to-trough. We saw a similar move with Ethereum.

Of course, Bitcoin, just like the ASX 200, rapidly recovered. It was back to its February high by July, and then went on the run we all know it for today, hitting an all-time high of just over US$63,000 a coin back in April this year.

But this analysis shows that cryptocurrencies like Bitcoin are definitely not immune to a share market correction or crash. In fact, Bitcoin fared far worse than the ASX 200 last year. Something to keep in mind for every cryptocurrency investor today. 

The post How could a share market correction impact cryptocurrencies like Bitcoin? appeared first on The Motley Fool Australia.

More reading

• A 10-fold spike in the Bitcoin (CRYPTO:BTC) price? Not so fast!
• Cryptocurrencies are making their way into more retiree portfolios
• Ethereum price climbs as competitor’s blockchain suffers outage
• Why this expert thinks gold is a better investment than Bitcoin
• Survey reveals big shift in Australians investing in Bitcoin and Ethereum

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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The China Evergrande Group (HKG: 3333) crisis is coming to a boil.

And, if left to its own devices, the crisis could spill over into global markets.

At time of writing, the S&P/ASX 200 Index (ASX: XJO) is flat after following global markets lower during the morning.

A raft of interest and bond payments for the massively indebted Chinese property giant are due this week and next.

The Chinese government has yet to blink on President Xi Jinping’s resolve to crack down on China’s real estate industry. That crackdown, intended to rein in runaway property prices, is leaving Evergrande investors and debt holders with plenty of uncertainty as to whether the state will step in with aid as it has in the past.

In Australia, there are specific concerns on the potential impact on ASX 200 iron ore shares.

ASX 200 mining giants including BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Fortescue Metals Group Ltd (ASX: FMG) have already seen their share prices tumble over the past month as iron ore prices collapsed from record highs.

But depending on how the Evergrande saga plays out, there could be more pain ahead.

We’ll look at why the BHP, Rio, and Fortescue share prices could be particularly vulnerable to an Evergrande meltdown below.

But first…

Who is Evergrande?

Many ASX 200 investors have likely never heard of Evergrande until the company began making global headlines over its debt woes.

So, who is Evergrande?

According to the company’s website:

Evergrande Real Estate owns more than 1,300 projects in more than 280 cities in China and is a forerunner in delivering all houses with fine decoration, guaranteeing no-reason house return and online marketing, to provide a new life of smart housing for more than 12 million proprietors.

What I couldn’t find on the website was any mention of the company’s ballooning debt concerns.

The company has some US$300 billion worth of liabilities. That’s about AU$410 billion of debt to you and me.

According to Bloomberg (quoting in US dollars):

It’s a whale in China’s high-yield dollar bond market, accounting for about 16% of outstanding notes. Some $83.5 million of interest on a five-year dollar bond comes due Thursday, and failure to pay within 30 days may constitute a default. Evergrande also needs to pay a 232 million yuan ($36 million) coupon on an onshore bond the same day.

If that’s not enough to get investors tossing and turning, ABC News adds the following:

“Worsening the company’s crisis, it is yet to finish building an estimated 1.4 million apartments that it previously sold off-the-plan to buyers, creating yet another group of people eager to recoup their money amid concerns construction will stop.”

And then there’s this, also from Bloomberg, “While details on the amount due aren’t publicly available, Chinese authorities have already told major lenders not to expect repayment.”

Investors in the Chinese property giant have taken note.

The Evergrande share price closed down another 11% yesterday. It’s now down 26% over the past 5 days and down 50% over the last month.

As for investors who bought shares in Evergrande at the beginning of 2021? They’re sitting on a painful loss of 85%.

What the experts are saying

There is major concern among financial experts about a potential Lehman Brothers like fallout if Evergrande isn’t handed some sort of government lifeline.

Societe Generale SA analysts, led by Phoenix Kalen, head of emerging-market strategy in London, said (quoted by Bloomberg):

The repercussions from Evergrande’s prospective collapse will likely contribute to China’s ongoing economic deceleration, which in turn anchors global growth and inflation, and casts a pall over commodity prices.

Goldman economists, led by Hui Shan, wrote:

With policy makers showing no signs of wavering on property market deleveraging, the latest headlines regarding Evergrande likely suggest that housing activity may deteriorate further in the absence of the government providing a clear path toward an eventual resolution.

Ding Shuang, chief economist for Greater China at Standard Chartered, offered a slightly more upbeat appraisal, saying:

Even though most people don’t expect Evergrande to collapse all of a sudden, the silence and a lack of major actions from policy makers is making everyone panic. I expect China to at least offer some verbal support soon to stabilize sentiment.

Jimmy Chang, chief investment officer at Rockefeller Global Family Office, agrees that Chinese government assistance is essential. But will the government deliver?

According to Chang (quoted by CNBC):

Everyone was expecting the government would have some kind of resolution, given that Evergrande is a systemically important company. It has $300 billion in outstanding debt. There is a contagion issue if China Evergrande is not resolved. I think it will end up having some deep-pocketed state-owned enterprises to take over…

It could be a self-fulfilling prophecy. This liquidity issue – real estate is so important to the Chinese economy and the financial well-being of so many Chinese families. Homeownership is over 90%. So many people buy apartments as an investment, so if this thing is not contained, it could become a real black swan…

If China were to have a serious economic issue because of China Evergrande, the rest of the global economy would have contagion from it.

Why ASX 200 iron ore shares could be hit

China, as you likely know, has the world’s most voracious appetite for iron ore.

While it produces some of its own, it also holds the mantle as the globe’s biggest importer of iron ore.

Most of that ends up as steel. And roughly half of that is used by China’s construction sector.

Should that consctruction sector take a beating, if Evergrande is allowed to sink, it’s quite likely that will see a reduced demand for Aussie iron ore.

Or, as Societe Generale’s Kalen said above, “cast a pall over commodity prices”.

And iron prices have already been tumbling fast.

Less than 2 months ago, in the final weeks of July, a tonne of iron ore was trading at near record highs of US$220.

Today, iron ore retreated another 9% overnight and is currently worth $US93 per tonne.

And that, as you’d expect, has put the ASX 200 iron ore miners under pressure.

Over the past month, the BHP share price is down 15%.

Over that same time, the Rio share price has lost 10% and the Fortescue share price is down a gut wrenching 25%.

Little wonder then that investors in the ASX 200 miners are keeping a close eye on how the Evergrande crisis evolves.

Stay tuned.

The post What the Evergrande crisis could mean for ASX 200 iron ore shares appeared first on The Motley Fool Australia.

More reading

• What this leading broker is saying about the Fortescue (ASX:FMG) share price
• Leading brokers name 3 ASX shares to sell today
• ASX 200 rebounds into positive territory led by energy and materials shares
• New Hope (ASX:NHC) share price jumps on $337m profit turnaround
• Fortescue (ASX:FMG) share price bounces higher despite iron ore sliding below US$100 a tonne

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 is wobbling today. Earlier today it climbed as high as $15.17 but is currently trading at $14.68, a fall of 0.14% on the previous close.

The fall into the red continues a difficult month for Fortescue shares. They are down 28% over the past month, well behind the major benchmark indices.

Let’s take a closer look at what’s up with the Fortescue share price, and what brokers are saying in their analysis.

What’s up with Fortescue lately?

The rapid decline in the price of iron ore is one major factor weighing down Fortescue shares lately. Iron ore has plummeted from previous highs of US$222 per tonne in July and now trades at US$104.50 per tonne.

Fortescue is an ASX resource share that produces commodities. In fact, it is the world’s largest producer of iron ore. Because of this, it is considered a price taker.

As such, its share price is heavily tied to fluctuations and volatility within the broader commodity markets.

Given this relationship, it makes sense why Fortescue’s share price has decreased by 43% since July 30, shortly after iron ore made its move south.

What are analysts saying about Fortescue?

One leading broker believes Fortescue is more sensitive to these deteriorating iron ore prices than the other large ASX-listed mining companies.

Analysts at investment bank Credit Suisse feel investors have concerns over the mining giant’s cost inflation pressures.

In addition, the broker feels Fortescue’s pivot into renewables-led technology is likely to be a pull on its share price valuation.

Speaking on its reasoning, the broker said there “may be little to like” on Fortescue shares until the “iron ore macro momentum recovers”. It also said these headwinds will remain “until FFI successfully delivers value” – likely a few years away “even if successful in (its) view”.

Fortescue continues to allocate 10% of net profit to Fortescue Future Industries (FFI), the company’s push into renewable energy products.

Investors appear to agree with the broker’s assessment, given the performance of Fortescue’s share price over this year to date.

Fortescue share price snapshot

The Fortescue share price has had a tough year to date, and is swimming in a sea of red. It has posted a loss of 37% since January 1, and 9% over the past 12 months.

These results have lagged the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.

The post What this leading broker is saying about the Fortescue (ASX:FMG) share price appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• ASX 200 rebounds into positive territory led by energy and materials shares
• New Hope (ASX:NHC) share price jumps on $337m profit turnaround
• Fortescue (ASX:FMG) share price bounces higher despite iron ore sliding below US$100 a tonne
• 5 things to watch on the ASX 200 on Tuesday

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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On Monday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Morgans, its analysts have retained their reduce rating and cut their price target on this iron ore miner’s shares to $14.15. The broker made the move on the belief that iron ore prices could weaken and low grade discounts could widen further as China puts restrictions on steel output. In addition to this, a change to its valuation method has also negatively impacted its valuation. The Fortescue share price is fetching $14.66 on Tuesday.

Rio Tinto Limited (ASX: RIO)

A note out of UBS reveals that its analysts have retained their sell rating and cut their price target on this mining giant’s shares to $86.00. The broker made the move in response to a correction in iron ore prices, which it notes is happening far quicker than it was anticipating. This has led to a downgrade in both its iron ore forecasts and its earnings estimates for Rio Tinto. UBS also has concerns over the longer term iron ore price due to supply increases. The Rio Tinto share price is trading at $95.87 this afternoon.

Vicinity Centres (ASX: VCX)

Analysts at Morgan Stanley have retained their underweight rating and $1.59 price target on this shopping centre operator’s shares. While the broker acknowledges that Vicinity will benefit when the economy reopens, it believes this has already been factored into the current Vicinity share price. As a result, it feels there are better options for investors to consider as reopening investments. The Vicinity share price is currently trading at $1.68.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• ASX 200 rebounds into positive territory led by energy and materials shares
• New Hope (ASX:NHC) share price jumps on $337m profit turnaround
• Fortescue (ASX:FMG) share price bounces higher despite iron ore sliding below US$100 a tonne
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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 Core Lithium Ltd (ASX: CXO) share price is lifting amid news the company plans to reach steady state production in financial year 2023.

Core Lithium’s chair Greg English also noted lithium industry forecasters’ optimistic predictions. He stated experts predict the commodity’s price will grow considerably in the medium-term.

That would place the company’s Finniss Lithium Project‘s commencement date in direct alignment with increasing demand.

The comments were released this morning in the company’s 2021 annual report.

At the time of writing, the Core Lithium share price is 41.5 cents, 1.22% more than its previous close.

Let’s take a closer look at what Core Lithium’s bosses expect the company will achieve in the future.

Core Lithium’s directors look to a prosperous future

The Core Lithium share price is gaining on the back of the company’s 2021 annual report.

Within the report, English commented the company will be focusing on its Finniss Lithium Project and the land surrounding it in the Northern Territory this financial year.

Construction on the project is set to begin shortly.

He also flagged the company might look to acquire nearby lithium and tin tenements. It also plans to attempt to grow the Finniss mine’s life to more than 10 years.

Additionally, Core Lithium’s managing director Stephen Biggins noted underinvestment in lithium supply has left the world with a shortage of low-risk projects like Finniss.

According to Biggins, Finniss will be the only lithium mine in the Northern Territory.

Core Lithium also expects to be the only ASX-listed, Australian-based company beginning new lithium spodumene concentrate production in 2022.

The project is expected to produce 175,000 tonnes of spodumene concentrate each year from late next year.

That’s right when Core Lithium’s managing director and chair believe demand for the product will increase, leaving the company in a strategically fortunate position from 2023 and onwards.

Core lithium share price snapshot

The Core Lithium share price has been performing well on the ASX lately.

It is currently 186% higher than it was at the start of 2021. It has also gained a whopping 888% since this time last year.

The post Core Lithium (ASX:CXO) share price lifts amid bosses’ optimistic outlook appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares are rallying across the board today. Here’s why.
• The Core Lithium (ASX:CXO) share price has gained 8% in a week
• Why ASX lithium shares are having a bumper start to the 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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