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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Cryptocurrencies might be in a slump at the moment, but that hasn’t stopped investors from jumping on the crypto bandwagon.

While most of the attention is focused on the biggest names in cryptocurrency, like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), countless newer coins have popped up over the past few months.

“Meme coins” are often written off as a joke, but some investors believe they should be taken seriously. Cryptocurrencies like Dogecoin (CRYPTO: DOGE) have made massive waves in the crypto space, and some people have made a lot of money from these investments. But are meme coins a smart investment?

What are meme coins?

Meme coins are cryptocurrencies that have gained popularity in a short amount of time, usually as a result of influencers and retail investors promoting them online.

Dogecoin is the original meme coin: It was created as a joke based on a meme back in 2013. It rose to fame after Elon Musk began tweeting about the cryptocurrency, and retail investors started buying in droves.

Because anybody can create a new cryptocurrency, developers have released a slew of meme coins after Dogecoin. Many of these coins are spinoffs of Dogecoin — take the coin Shiba Inu (CRYPTO: SHIB), for example — but there are thousands of other meme coins out there. In fact, according to the website CoinMarketCap, there are more than 5,000 meme coins in existence as of this writing.

What’s the difference between cryptocurrency and meme coins?

Meme coins are a type of cryptocurrency, but there’s one major difference between cryptocurrencies like Dogecoin and Shiba Inu and currencies like Bitcoin and Ethereum, and it comes down to utility.

Major cryptocurrencies like Bitcoin and Ethereum were developed to solve real-world problems. The goal is to eventually become widely accepted by merchants, creating a new form of decentralized currency and revolutionizing a variety of industries.

Meme coins, on the other hand, serve no real-world purpose right now, and most of them were created as a way to make a quick buck.

Some of these coins have gained notoriety because they’re promoted by influential celebrities, and retail investors have pumped up their prices by promoting them heavily online. This is why these coins tend to experience explosive growth despite their shaky fundamentals.

Once their prices surge, many investors sell shortly after to make a quick profit. Because meme coins have no real utility at the moment, it’s unlikely they’ll still be around in a few years or decades. Once investors move on to a new stock or cryptocurrency, meme coins will likely see their prices plummet.

Should you invest in meme coins?

While it is possible to make money investing in meme coins, this type of investment is incredibly risky and more similar to gambling than true investing. If you happen to buy and sell at precisely the right time, you could make a profit. It’s more likely, though, that you’ll lose all or most of the money you invest.

A better strategy is to focus on investments that are likely to perform well over the long run. Cryptocurrency in general is still highly speculative, so nobody knows how it will perform over time. But if you do invest in crypto, make sure you’re choosing currencies that have strong fundamentals and are more likely to stand the test of time.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post What are meme coins, and can they make you rich? appeared first on The Motley Fool Australia.

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Katie Brockman owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. The benchmark index is currently down 0.9% to 7,241.8 points.

Here’s what is happening on the market today:

Big four banks drop

The big four banks are under pressure and acting as a drag on the market today. All four banks are in the red at lunch, with the National Australia Bank Ltd (ASX: NAB) share price the worst performer in the group. Its shares are down 1.1% at the time of writing.

Brokers respond positive to Metcash result

The Metcash Limited (ASX: MTS) share price is charging higher on Tuesday after brokers responded positively to its full year results release. Credit Suisse has retained its outperform rating and lifted its price target to $4.16. Whereas Morgan Stanley retained its overweight rating and increased its price target to $4.15. The compares to the current Metcash share price of $3.86.

ResMed downgraded

The ResMed Inc. (ASX: RMD) share price is trading lower today. This appears to have been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded the medical device company’s shares to a neutral rating with an improved price target of $32.50. It made the move on valuation grounds after a strong gain.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Metcash share price with a 4% gain. This follows the aforementioned positive response to its full year results. The worst performer with a 4.5% decline has been the Vicinity Centres (ASX: VCX) share price. This morning the property company’s shares traded ex-dividend.

The post ASX 200 down 0.9%: Big four banks drop, Metcash charges higher appeared first on The Motley Fool Australia.

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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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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 Facebook, Inc. Common Stock (NASDAQ: FB) share price closed up 4.2% yesterday (overnight Aussie time).

The social media giant finished the first trading day of the week at US$355.64 (AU$467.95) per share. That was enough to vault Facebook’s market cap to US$1.01 trillion, joining a small handful of listed companies that have cracked the trillion-dollar mark.

At time of writing, the Facebook share price is up another 0.2% in afterhours trading to US$356.21.

Why did shares in Facebook leap higher yesterday?

Facebook’s share price popped 4% higher in only 40 minutes yesterday afternoon (US time) after news broke that a judge had ruled in its favour and dismissed 2 major antitrust lawsuits.

In December 2020 the US Federal Trade Commission (FTC) along with several US state attorneys general filed the suits against Facebook, saying the company was violating antitrust laws. The FTC was looking to force Facebook to divest some of its assets, such as the highly popular Instagram and WhatsApp programs.

In a win for Mark Zuckerberg’s company, and the Facebook share price, the court ruled against the FTC. As Bloomberg reports, District Judge James Boasberg said there was not enough evidence presented to prove Facebook has more than a 60% monopoly share of the total social networking market.

That’s not necessarily the end of the FTC’s legal action against Facebook. The agency can refile its complaint within 30 days if it believes it can prove its antitrust allegations.

Facebook share price snapshot

Facebook shares are up 61% over the past 12 months. And since the 20 March 2020 pandemic-fuelled low, shares are up 138%. And remember, this is a US$1 trillion company we’re talking about.

Apple Inc (NASDAQ: AAPL) became the first listed US company to surpass US$1 trillion almost 3 years ago. It’s since been joined by Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), and Alphabet Inc Class A (NASDAQ: GOOGL), or Google to you and me.

With Facebook’s share price lift yesterday, it now joins this trillion dollar club.

The post Facebook (NASDAQ:FB) joins US$1 trillion club as share price leaps appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Facebook. 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 Worley Ltd (ASX: WOR) share price is starting the day off in negative territory today. This comes after the engineering group announced that it has been awarded a services contract from Syrah Resources Ltd (ASX: SYR).

During mid-morning trade, Worley shares are down 1.26% to $11.71 while the Syrah share price has lifted 0.49% higher to $1.02.

Worley expands partnership

Investors are selling off Worley shares despite the company announcing a positive release to the ASX.

According to the update, Worley advised it has been awarded a detailed engineering and procurement services contract. The scope of work will be for the expansion of production capacity at Syrah’s active anode material (AAM) facility in Vidalia, the United States. It is expected that once the project is complete, the plant will produce around 10,000 tonnes per annum of AAM.

AAM is a natural graphite material that is used in lithium-ion batteries to power electric vehicles.

Syrah noted that Worley is experienced in delivering the project due to previous work between both parties. This includes the bankable feasibility study, front-end engineering and design, as well as interim detailed engineering services.

Worley will use its United States Gulf Coast team to execute the work, whilst receiving support from its Global Integrated Delivery Team in India.

Worley CEO, Chris Ashton said:

We are delighted to expand our relationship with Syrah and further support Syrah’s production of materials that play an important role in the energy transition. We are helping our customers adapt to the world’s changing energy needs and achieve their renewable energy goals, so this is a strategically significant project for Worley.

Syrah managing director and CEO, Shaun Verner went on to add:

We are delighted to execute this services contract and to continue our successful technical partnership with Worley through to the next important project phases at Vidalia. The finalisation of this contract, and the substantial engineering work completed to date with Worley, has de-risked the project and is a key step in advancing towards construction of the 10ktpa AAM facility at Vidalia.

Worley share price summary

Over the past 12 months, the Worley share price has gained close to 40% but is relatively flat for 2021. Worley shares took a hit in late January after providing a business update and have moved in circles ever since.

Worley presides a market capitalisation of more than $6 billion at today’s prices, with just over 522 million shares outstanding.

The post Worley (ASX:WOR) share price backtracks regardless of contract win 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.

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The Ansell Ltd (ASX: ANN) and Healius Ltd (ASX: HLS) share prices both set new 52-week highs this week.

Let’s take a look at each individually and the recent events for each ASX share.

A look at Ansell’s share price

The Ansell share price hit a record high yesterday at $43.23, trading above the 52-week low of $33.23 on 8 December 2020.

Shares in the global player for health and safety protection solutions have climbed 22.67% year-to-date, outpacing the S&P/ASX 200 Index (ASX: XJO)’s 11% at the time of writing.

The company’s shares have also posted another 4.04% over the last 1 month, at the time of writing. Today’s trading volume is more than 50% of the 20-day average.

The Ansell share price has also gained a further 2.6% over the past 5 days to hit $43.16 at the time of writing, giving the company a market capitalisation of $5.39 billion.

On 8 June 2021, the company announced the appointment of new Chief Executive Officer Neil Salmon, to succeed outgoing CEO Magnus Nicolin, effective September 2021.

In the announcement, Ansell chair John Bevan stated:

Neil has the right combination of financial and operational experience and capability for the CEO role at Ansell. He has worked alongside Magnus for many years and was a key contributor to the strategies which transformed Ansell during that time. More recently, Neil also led our Industrial GBU with its over 7,500 strong manufacturing, marketing and product development workforce located in multiple jurisdictions. His leadership was critical in the management of the initial challenges of the pandemic, positioning the business where it could maximise benefits from the recovery as it emerged.

Investors continue to reward Ansell shares, with the company’s share price gaining 10.5% since this event at the time of writing.

Healius share price snapshot

The Healius share price set a new 52-week high of $4.65 in today’s session, capping off a year-to-date gain of 20.16% at the time of writing.

Trading volume is more than triple of the 20 day average for this time of day. The 52-week range for Healius share price is $2.98–$4.65.

The Australian healthcare company specialises in pathology, imaging and medical facilities. Its shares have gained 9.64% over the previous month and 4.9% in the previous 5 days, giving the company a market capitalisation of $2.8 billion.

Healius has seen its share price increase by 15.86% since May, where it presented a positive trading performance to the Macquarie Australia trading conference.

Foolish Takeaway

These 2 ASX shares have each set new 52-week highs after gaining more than 20% each this year, and have both outpaced the ASX 200’s return this year to date.

The post 2 ASX shares hitting record highs this week appeared first on The Motley Fool Australia.

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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 Ansell 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Twitter (NYSE: TWTR) climbed 11.6% the week of June 21, leading the way among social media stocks over the same period. Snap Inc. was the only other social media stock to gain more than 5% over the same period, though the rest of the crowd had a better week than the S&P 500.

TWTR data by YCharts

The week’s gains for Twitter were mostly tied to positive news about its efforts to increase monetization, both for its top users and for the company itself.

So what

For some time, speculation has been rampant that Twitter was planning to roll out a number of features that would — at long last — help it monetize its treasure trove of users to make money. And we’ve seen several of those start coming to fruition recently, including Twitter Spaces, and more recently, “Twitter Blue,” a subscription service it has rolled out in several international markets already, that adds some additional features for users willing to pay up.

But the next group is now on the horizon, and it has investors feeling more bullish: Super Follows and Ticketed Spaces. In short, Twitter bulls have high hopes that adding features that Twitter users will pay for and allowing for paid events on Twitter Spaces, will unlock more of the economic value of Twitter’s users since the company will take a cut of what its users charge for Ticketed Spaces and Super Follows.

Now what

The plans for these two new offerings have been in the works for many months and should come as no surprise to anyone who’s followed Twitter. But the fact is, they’re finally about to come into the real world and start helping generate revenue for the company. With Twitter’s shares trading for about 14 times sales and less than 49 times operating cash flow, only Facebook has a lower valuation among social media peers.

If these new cash-generating offerings are even moderately successful, Twitter could prove to be a bargain at these prices. All that’s left is the hardest part: Releasing them into the wild and finding out if they’re a money-making success or just another disappointing attempt that doesn’t pan out.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Twitter stock was up 12% last week appeared first on The Motley Fool Australia.

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Jason Hall has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook and Twitter. The Motley Fool Australia has recommended Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Shares in Genworth Mortgage Insurance Australia Ltd (ASX: GMA) plummeted 17% to 8-month lows in early trade this morning.

At the time of writing, the lenders mortgage insurance provider’s share price is down 15.16%, trading at $2.15.

Let’s take a look at what may be impacting the Genworth share price today.

What did Genworth announce?

In today’s statement, Genworth said the Commonwealth Bank of Australia (ASX: CBA) advised that it intended to issue a request for proposal “relating to its Lenders Mortgage Insurance (LMI) requirements” after the current exclusivity agreement with Genworth expires on 31 December 2022.

Genworth has a range of lender customers across Australia including major and regional banks, building societies, credit unions and non-bank mortgage originators. The company said it had provided CBA with its LMI services for more than 50 years, including an exclusive arrangement since 2006.

Genworth added that its CBA LMI contract represented approximately 57 per cent of the company’s FY20 gross written premiums.

Management commentary

Genworth CEO and managing director Pauline Blight-Johnston said:

We welcome the opportunity to submit a proposal to CBA to extend our agreement for the supply of LMI beyond 2022, building on the strong foundations of our long-standing relationship.

A core part of our strategy is to work with our lender customers to continue to improve the efficiency and competitiveness of LMI as we look to reimagine LMI for a new generation of home buyers.

Genworth share price in 2021

Despite having a strong exposure to Australia’s red hot property market through its LMI products, the Genworth share price has struggled to outperform the broader market.

Genworth shares have now tumbled ~12% year-to-date and are down almost 25% in June. This compares to the S&P/ASX 200 Index (ASX: XJO), which has run about ~9.3%.

The post Genworth (ASX:GMA) share price dives 17% after CBA contract update 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 Neometals Ltd (ASX: NMT) share price is gaining in morning trade, up 2.2% to 47 cents per share.

Below we look at the latest resource update from the ASX mineral explorer

What update did Neometals report?

Neometals’ share price is gaining after the company announced a major Mineral Resource upgrade for several of its nickel deposits.

The updated Mineral Resource estimates for its McEwen and McEwen Hangingwall deposits come in at a grade of 1.4% nickel, totalling 41,500 tonnes of contained nickel. That’s a 45% increase from the previous estimates of 29,220 tonnes.

These deposits represent 2 of 11 total Mineral Resources at the Neometals’ Mt Edwards Project in Western Australia. All are located in an area rich with historic nickel sulphide mines near the town of Widgiemooltha.

The Global Mineral Resource at the Mt Edwards Project has been revised upwards to 9.64 million tonnes at 1.7% nickel for a total of 160,000 tonnes of contained nickel.

Freshly researched historical data also led the company to downgrade its Zabel Mineral Resource, which was last estimated in December 2020. According to the release, the revised estimate “now only includes nickel sulphide in fresh rock”. The Zabel Mineral Resource was reduced by 7%, with 325,000 tonnes at 2% nickel for a total of 6,360 tonnes of contained nickel.

Neometals said it plans additional exploration at both McEwen and McEwen Hangingwall, with bot reverse circulation and diamond drilling to increase its knowledge of the extents of mineralisation.

Neometals share price snapshot

Neometals shares have gained an impressive 236% over the past 12 months, compared to a gain of 27% on the All Ordinaries Index (ASX: XAO).

Year-to-date the Neometals share price has continued to outperform, up 62% so far in 2021.

Neometals has a market cap of $251 million.

The post Why the Neometals (ASX:NMT) share price is moving higher appeared first on The Motley Fool Australia.

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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 Collins Foods Ltd (ASX: CKF) share price is pushing higher on Tuesday morning following the release of its full year results.

At the time of writing, the KFC-focused quick service restaurant operator’s shares are up 4% to a record high of $13.25.

How did Collins Foods perform in FY 2021?

For the 12 months ended 2 May, Collins Foods reported a 12.4% increase in revenue to $1.07 billion. This was driven largely by its KFC Australia business, which reported a 13.8% increase in revenue to $900.4 million thanks to new store openings and same store sales growth of 12.9%.

This was supported by a 57.4% increase in Taco Bell revenue to $28 million, which offset a 0.6% same store sales decline from the KFC Europe business.

In respect to earnings, Collins Foods reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations (pre AASB 16) of $136.3 million, which was up 12.4% on the prior corresponding period.

On the bottom line, underlying net profit after tax from continuing operations was up 18.2% to $56.9 million.

This strong form allowed the company to declare a fully franked final dividend of 12.5 cents per share, bringing its total dividend to a fully franked 23 cents per share. This represents a 15% increase on FY 2020’s dividend.

Management commentary

Collins Foods’ CEO, Drew O’Malley, said: “Collins Foods successfully navigated the unprecedented challenges of COVID-19 to deliver another year of strong earnings growth in FY21. Our focus on people and operations was critical to this result, as our teams did an exceptional job of keeping our restaurants operating at a world-class level, often without the benefit of dine-in sales channels.”

“KFC Australia was the standout performer with same store sales growing at a record rate of 12.9% and Underlying (pre AASB 16) EBITDA margins reaching 17.9%. As consumers turned to trusted brands and sought convenience, we responded with powerful brand marketing, combined with exciting initiatives in digital and an expansion of our delivery network. Digital and delivery continue to be pillars of our growth strategy for the KFC brand,” he added.

And while things were not as positive in Europe, management remains positive on its prospects in the potentially lucrative market.

Mr O’Malley explained: “KFC Europe had a more challenging operating environment with margins impacted by ongoing lockdowns and dining restrictions, in place for most of the year. Nonetheless, we were able to leverage weakness in the market to advance our strategic interests there, recently executing a more favourable Development Agreement and increasing our footprint in the Netherlands with the acquisition of a (net) eight new restaurants. Both of these moves will position the European business unit for a favourable recovery.”

Outlook

No guidance was provided for the year ahead. However, management spoke positively about the future both at home and overseas.

Mr O’Malley said: “With continuing strong cash generation and a healthy balance sheet, Collins Foods is well positioned to continue to pursue strategic organic and acquisition growth opportunities across the Group in the year ahead.”

In Australia, the company has signed an agreement to build a minimum of 66 new KFC restaurants by 2028. Whereas in Europe it has been incentivised to drive growth and expects up to four new builds per year in the Netherlands going forward. Collins Foods is also monitoring the landscape for opportunities to increase openings in Germany following improvements in business performance.

Finally, Taco Bell is on track for accelerated development in FY 2022. This will be supported by ongoing consumer demand for Mexican food in Australia, and a refined marketing approach. It is looking at 9 to 12 new restaurants being opened in the year ahead.

The CEO concluded: “Our team remains aligned on delivering on our core mission of Restaurants Done Better. Our continued emphasis on operational execution, people development, and excellence in store development will underpin our pursuit of sustainable growth in FY22 and beyond.”

The post Collins Foods (ASX:CKF) share price hits record high after reporting strong FY 2022 growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. 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 Collins Foods 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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BHP Group Ltd (ASX: BHP) shares finished yesterday 1.04% in the green, after announcing the first step in its thermal coal selloff. This morning, however, the BHP share price has given back yesterday’s gains and is currently trading down 1.36% at $47.74 per share.

Let’s take a closer look at the mining giant’s recent news.

BHP offloads stake in coal project

Yesterday afternoon, BHP announced the divestiture of its 33.3% stake in the Carrejon coal project

Carrejon is a non-operated energy coal joint venture in Colombia. In addition to BHP, Anglo American and Glencore each held a 33.3% position in Carrejon prior to this transaction. The transaction will occur on a $387 million cash sale to Glencore PLC.

BHP has previously stated it intends to divest its thermal-coal operations by the end of 2022.

The sale is anticipated for full closure by December 2021, and the purchase price may include an adjustment for dividends paid to BHP by Carrejon from when signing to the deal’s completion.

Glencore acquired Anglo American’s position on similar terms, in addition to BHP’s interests, for a total consideration of ~USD$588 million.

Further, an additional post-taxation impairment charge of $80 million will be recognised by BHP in the second half of FY21 related to the sale.

Analysts at investment bank Jeffries state the sale is a “win-win-win deal” for all parties involved.

“Glencore triples down in Columbia but will run the asset for cash until depletion,” it said in a note to investors on Monday.

Although BHP shares finished in the green, the share price fell around 5% intraday on announcement of the divestiture at about 2pm, and fell again towards the end of yesterday’s session.

The entire transaction is expected to settle sometime in FY22.

BHP share price snapshot

At the time of writing, the BHP share price is down 0.87% across the past month, but has returned more than 12% over the year to date.

With a share price of $47.74, BHP has a market capitalisation of around $140 billion, and trades at a price-to-earning ratio (P/E) of 24.97.

The post BHP (ASX:BHP) announces first deal in thermal coal selloff appeared first on The Motley Fool Australia.

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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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