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The Arafura Resources Limited (ASX: ARU) share price is deep in the red after coming out of a trading halt today.

At the time of writing, the mining outfit’s shares are down an astonishing 20.59% to 13.5 cents.

Let’s take a look at what Arafura released to the ASX this morning.

Arafura moves closer to production

Investors are dropping Arafura shares on news of the company’s latest capital raising.

According to its release, Arafura advised it has received firm commitments to raise $40 million through a share placement. The offer was presented to domestic and international institutional investors at an issue price of 12 cents per share. This equates to roughly 333.3 million new ordinary shares being added to the company’s registry.

The shares will be split across two separate tranches, with the first portion falling under the company’s listing rule 7.1. This allows up to 15% of its shares to be issued without shareholder approval.

The second portion of shares will be subject to shareholder approval at a meeting to be held in early August.

Proceeds of the placement will be used to commence Front End Engineering and Design (FEED) activities at the Nolans Project. In addition, the company will also set aside some funds for general working capital purposes.

Arafura managing director, Gavin Lockyer commented:

We are delighted with the support for the Placement, and welcome a number of Australian and offshore institutional investors to the register.

The Nolans Project is the only new shovel ready NdPr Oxide project in Australia capable of delivering advanced materials into the critical minerals supply chain.

Nolans has the potential to diversify rare earth supply chains whilst seeding new industry in Australia, one of the world’s safest and most secure jurisdictions.

In further news, Arafura will offer a Share Purchase Plan (SPP) to existing shareholders in hopes to raise $5 million. The funds will be allocated for the same purposes as mentioned above.

Arafura share price summary

The start of 2021 saw the Arafura share price accelerate to a multi-year high of 30 cents. However, after some serious profit-taking, the company’s shares have lost more than half their value in just 6 months.

Arafura has a market capitalisation of around $155 million, with more than 1.1 billion shares on its books.

The post Arafura (ASX:ARU) share price comes out of trading halt, sinks 20% appeared first on The Motley Fool Australia.

More reading

• Arafura (ASX:ARU) share price frozen ahead of capital raising

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 Ioneer Ltd (ASX: INR) share price is charging higher today, up 11% in late morning trade.

Below we take a look at the latest legal announcement from the emerging ASX lithium-boron producer.

What legal developments did Ioneer announce?

Ioneer’s share price is rocketing higher after the company reported on the findings issued by the United States Fish and Wildlife Service (FWS) over an endangered plant species at the company’s proposed Rhyolite Ridge lithium mine in the US state of Nevada.

The plant in question, Tiehm’s buckwheat, is a small, flowering plant growing on public land in the Nevada’s Silver Peak Range. It grows well in soils containing lithium and boron.

According to the release the findings were required under a recent court stipulation agreed upon by Ioneer, FWS and the Plaintiffs.

The FWS found that “due to severe drought conditions and a drought-induced herbivory (where animals are eating plants), an investigation into an Endangered Species Act (ESA) listing of Tiehm’s buckwheat is ‘warranted’.”

The agency will announce its decision on whether to propose an ESA listing for the plant in September.

Commenting on the development, Ioneer’s managing director Bernard Rowe said:

We fully support and share FWS’s commitment to protect and preserve Tiehm’s buckwheat. The latest finding was in line with our expectations, and we support the FWS’s deliberations on a final listing decision. This process will provide greater certainty around our schedule and diminishes the prospect of future litigation…

We have carried out significant work on propagation and transplantation of the species and remain confident the plant and the mine can successfully coexist. Ioneer remains committed to protection of Tiehm’s buckwheat irrespective of its listing status, and we will implement the highest standard of measures to ensure that the species is protected.

Rowe highlighted that the ongoing drought is specifically threatening Tiehm’s buckwheat, with small animals now eating the plant.

He added that, “FWS is authorized by the ESA to issue an incidental take permit for activities it finds will not jeopardize continued existence of an ESA-listed species. Our protection and conservation efforts have been designed to meet that standard to maximize protections.”

Ioneer share price snapshot

Ioneer shares have gained a whopping 135% over the past 12 months, well surpassing the 24% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the Ioneer share price is up 9%.

The post Here’s why the Ioneer (ASX:INR) share price is charging 11% higher appeared first on The Motley Fool Australia.

More reading

• Ioneer (ASX:INR) share price plummets 17% on new lithium mine hurdle

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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Firefinch Ltd (ASX: FFX) shares won’t be going anywhere on Thursday, after entering a trading halt. The Firefinch share price closed Wednesday’s session 2.17% lower at 45 cents.

Let’s take a look at the company’s latest update.

What’s the trading halt for?

Firefinch shares were halted before today’s market open, pending an announcement regarding a capital raising.

The company expects the trading halt to last until Monday 28 June, or when the capital raising announcement is released.

What does Firefinch do?

Firefinch is both a gold producer and lithium developer based in Mali.

The company has an 80% interest in the Morila Gold Mine, which has produced 7.5 million ounces of gold since 2000.

Firefinch aims to increase the project’s gold production via open-pit mining from Morila’s main large pit, satellite pits and new discoveries.

In terms of lithium exploration, the company says its Goulamina lithium project is one of the world’s largest undeveloped deposits, with the potential to be one of the lowest cost producers.

All permits are in place, with Firefinch’s definitive feasibility study citing a global resource of 109 million tonnes of lithium oxide at 1.45% Li2O.

Firefinch shares jump on Ganfeng joint venture

The Firefinch share price jumped 17% to 53.5 cents during intraday trading last Wednesday, after the company announced a joint venture with world-leading lithium producer, Ganfeng.

The 50:50 incorporated joint venture will see Ganfeng invest up to US$194 million to fast track Goulamina’s development.

Firefinch share price lifts 150% in 2021

The Firefinch share price has gone from strength-to-strength in 2021, likely supported by the company’s highly prospective lithium project.

2021 has also been a great year for other ASX-listed lithium developers. Industry heavyweight names such as Pilbara Minerals Ltd (ASX: PLS) and Galaxy Resources Ltd (ASX: GXY) have surged a respective 80% and 60% year to date.

Explorers have also received a fair share of love, with Piedmont Lithium Inc (ASX: PLL) and Galan Lithium Ltd (ASX: GLN) running 164% and 96% respectively, year to date.

The post Why the Firefinch (ASX:FFX) share price is halted today appeared first on The Motley Fool Australia.

More reading

• Firefinch (ASX:FFX) share price soars 11% on lithium joint venture

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. owns shares of and has recommended Piedmont Lithium Inc. 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. The benchmark index is currently down 0.25% to 7,280.5 points.

Here’s what is happening on the market today:

Woolworths-Endeavour spin-off

The Woolworths Group Ltd (ASX: WOW) share price is sinking notably lower on Thursday. However, this decline reflects the spin-off of its drinks business. This has seen Endeavour Group Limited (ASX: EDV) join the ASX 200 index today. Woolworths’ shareholders are receiving one Endeavour Group share for every Woolworths share they hold.

Westpac to keep NZ business

The Westpac Banking Corp (ASX: WBC) share price is trading lower on Thursday. This appears to have been driven by broad weakness in the banking sector which offset a potentially positive announcement. That announcement reveals that after assessing whether a demerger of its Westpac NZ business would be in the best interests of shareholders, the bank has concluded that more value could be created by holding onto the business.

Afterpay jumps

The Afterpay Ltd (ASX: APT) share price is charging higher today after expanding its one-time card footprint materially. The buy now pay later provider will now let users shop with some of the most popular and largest merchants in the United States. This includes Amazon, CVS, Dell, Kroger, Macy’s, Nike, Nordstrom, Nordstrom Rack, Sephora, Target, Victoria’s Secret, Walgreens and Yeti. These merchants represent almost half of all U.S. ecommerce volume.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the De Grey Mining Limited (ASX: DEG) share price with a 9% gain. This appears to be a delayed reaction to yesterday’s mineral resource update. The worst performer has been the Woolworths share price with a 12% decline following the Endeavour demerger.

The post ASX 200 down 0.25%: Woolworths sinks, Afterpay jumps, Westpac NZ update appeared first on The Motley Fool Australia.

More reading

• 4 top ASX 200 shares analysts rate highly
• Why is the Woolworths (ASX:WOW) share price down 15% today?
• Westpac (ASX:WBC) share price on watch after NZ update
• Afterpay (ASX:APT) onboards Amazon, Nike, Target to ‘one-time card’
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 gaining today, up 3.33% at the time of writing.

This comes after the ASX lithium explorer announced its latest gold drilling results.

Gold?

Yes, gold.

Core Lithium, as its name implies, remains primarily focused on developing its Finniss Lithium Project in the Northern Territory.

However, as part of its search for lithium-bearing pegmatite resources at Finniss, it identified numerous signs commonly associated with gold deposits in nearby locations.

What gold results did Core Lithium report?

The Core Lithium share price is gaining after the company announced promising gold results at its Bynoe Gold Project in the NT.

According to the release, quartz veins at Core’s Toolebuc Prospect are identical to ones hosting gold immediately to the north at Far East. The new results have increased the strike potential at the prospect from 1,600m to 2,500m.

The company said visible coarse gold and gold nuggets were contained in some of the samples at Toolebuc.

Of those samples it reported “numerous high-magnitude assays with results in excess of 100ppb Au”. The top result came in at 32g per tonne of gold.

The company has begun a second gold assay program to analyse roughly 3,000 historical samples from the area.

The Core Lithium share price also got a lift when the company revealed its application for co-funding through the NT Government’s Geophysics and Drilling Collaborations program was successful.

The $134,810 grant will cover half the costs of drilling 2 diamond core holes to test a defined target zone at Far East.

Management commentary

Core Lithium’s managing director Stephen Biggins said:

While Core is maintaining a clear focus on the main game of expanding the lithium resource inventory and subsequent development of our first lithium mining operations at Finniss, we believe a dedicated gold effort is warranted following the outstanding results achieved in 2020 by the company’s exploration team.

The company is awaiting the assay results from its recent rock chip and soil sampling programs at Toolebuc.

Core Lithium share price snapshot

Core Lithium’s shares have gained 360% over the past 12 months. By comparison the All Ordinaries Index (ASX: XAO) has gained 24% over that same time.

Year-to-date the Core Lithium share price has continued to march higher, up 35% so far in the calendar year.

The post Here’s why the Core Lithium (ASX:CXO) share price is lifting off today appeared first on The Motley Fool Australia.

More reading

• Core Lithium (ASX:CXO) share price rebounds on positive update
• ASX lithium shares are charging up today
• Why the Core Lithium (ASX:CXO) share price jumped 7% today

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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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.

Cryptocurrency investing is seen as one of the most lucrative strategies in 2021. As institutional investors and famous personalities have expressed their love for cryptos, demand for these digital currencies is skyrocketing, and so are their prices. The crypto bull run in the past year has tempted many new investors. However, cryptocurrencies are highly volatile assets with a fair share of risks.

Here are the six things you should understand as a new investor before investing your hard-earned money into these digital assets.

1. Don’t take large bets.

I agree that the spectacular returns generated by some cryptos are too enticing. You may want to invest all your money to earn maximum profit in this winning phase. But hold on because crypto markets are no less than a roller-coaster ride. No one knows if — or when — the market will crash. Unlike stock investing, there is no Securities Investor Protection Corporation (SPIC) or Federal Deposit Insurance Corporation (FDIC) coverage that comes as a savior. Hence, the gyrations of the crypto markets can be damaging if you take large bets. It’s wise only to invest a portion that you can afford to lose.

2. Research well at the outset

With a new altcoin seemingly launched every other day, you must know to separate the quality investments from the equivalent to penny stocks. It’s crucial to invest in projects that have been around for a while and have credible backing. Research the authenticity of the developers or teams backing them. Examine initial coin offering (ICO) whitepapers or prospectuses. And watch out for scammers that most certainly abound during the peak periods. If a proposition is too good to be true, it probably is.

Due diligence is critical here. Whenever you plan to invest in crypto in an initial coin offering, you must read the prospectus thoroughly. It’s an uphill task for sure, but something worth the effort. In addition to the coins, choosing crypto exchanges also require judgment, especially the ones that offer over 100x leverage. All’s well if a currency gains value, but you could end up losing all your money if it sees a correction.

3. Invest time in learning about value proposition

Investors buying a particular cryptocurrency for its rising price doesn’t necessarily make a good argument for its value proposition. Unlike equities, the value of cryptos isn’t determined by metrics, cash flows, or profits. Instead, you need to understand the primary objective of each cryptocurrency. Identify the gap they aim to address and the factors that make them unique.

For instance, replacing gold as the store of value and a hedge against inflation is the best use case for Bitcoin. Ethereum blockchain serves as the base for the majority of the DeFi (decentralized finance) projects. Similarly, Cardano aims to create an open financial system for inclusive banking. Researching the use cases of each coin is the best way to understand what the future holds for them.

4. Diversify your crypto portfolio

Bitcoin is the most-talked-about cryptocurrency. It has had a bull-run for a long time but has plummeted since April. So never put all your trust in one single crypto. Instead, you need to diversify your crypto basket to spread the risks evenly. A smart diversification across multiple coins ensures that if one coin goes through a rough patch, the other coins can help you to recover the losses. For example, some crypto investors like to follow a 6:3:1 strategy which implies investing 60% in Bitcoin, 30% in Ether, and 10% in other altcoins. This ratio varies across investors, though.

5. Don’t get swayed by emotions

Investing in cryptos should be based on research and not gut feeling. If fear of missing out is driving your crypto investments, you could miss out on safeguarding your wealth. I understand that the hype around crypto, the constant barrage of news, and the social media sentiments can be overwhelming. You may just want to follow every trend out there. However, this can be extremely dangerous, and you could fall prey to fly by-the-night scams. Don’t just go by what others tell you, whether they are promoters or detractors. Evaluate the merits of the investment case yourself and plan your moves based on the research.

6. Don’t ignore other expenses

Seeing multiple price changes in cryptocurrency prices within a single day or an hour is not uncommon. Naturally, you may want to take advantage of these changes, but you must consider the transaction fees for that. Another factor you need to check is your taxes. In the U.S. and Canada, you need to pay capital gains taxes on each transaction. So if you are involved in excessive trading, a significant portion of your gains can get wiped off if you don’t do the math for fees and taxes.

Be prepared for the risk and volatility.

Investing in cryptocurrency is exciting and rewarding. But these profit opportunities come with high risks. You could end up making losses if you aren’t sure of what you’re doing and why you’re doing it. Before you take the plunge into cryptocurrency, you must have a high-risk tolerance because volatility is a permanent element here.

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

The post Six things investors need to know before investing in cryptocurrencies appeared first on The Motley Fool Australia.

More reading

• Following another wild night, the Ethereum price is gaining…for now
• Here’s Why Bitcoin, Ethereum, and Dogecoin Crashed Tuesday
• Ignore the ‘death cross’…here’s why the Bitcoin price is crashing
• Cryptocurrencies like Bitcoin just tanked again!
• Are 4 million Aussies about to lose a fortune on Bitcoin?

Namrata Sen does not own any of the stocks mentioned. 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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The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is trading lower on Thursday despite the release of an update on its store expansion progress.

At the time of writing, the pizza chain operator’s shares are down 1.5% to $117.92.

Nevertheless, the Domino’s share price is still up a massive 34% since the start of the year.

What did Domino’s announce?

This morning Domino’s revealed that it has now opened its 800th store in the Japan market. Impressively, this is less than 12 months after opening its 700th store in the market.

According to the release, this means Domino’s Pizza Japan has opened a record of 126 stores in just one year. That works out to be an average of 2.4 stores per week over the period, despite COVID-19 challenges.

Domino’s Group CEO & Managing Director, Don Meij, said: “This marks an extraordinary achievement for Japan and is the result of a world-leading team effort from franchisees and team members alike.”

But the company has no plans to rest on its laurels. Management advised that it sees opportunities to almost double its footprint again in Japan over the next decade. This is thanks to changes in its Japanese operations that will allow it to make it dough in store, just like it does in the ANZ market.

Domino’s Pizza Japan President and CEO, Josh Kilimnik, explained: “Every member of the Domino’s Japan family should be proud of their efforts – this milestone is only possible because we have fundamentally changed how we have served our customers, from our menu offering and pricing through to our operations, which are consistently, safely delivering the fastest pizzas on the planet.”

“We are focused on reaching the 1500 store milestone by 2030-2032, with a new approach that allows us to make dough in stores (like in Australia/New Zealand) that opens up previously inaccessible cities and towns,” he added.

Are its shares good value?

One broker that still sees value in the Domino’s share price is Bell Potter.

It currently has a buy rating and $132.00 price target on its shares. This implies potential upside of 12% over the next 12 months.

The post Domino’s Pizza Enterprises (ASX:DMP) share price lower despite Japan update appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to sell next week

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 Dominos Pizza Enterprises 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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Some ASX shares are not highly rated by brokers. But there are also others that have been rated as buys by multiple brokers.

It’s possible that these stocks with multiple buy ratings are opportunities. But it is also possible that all of those brokers are wrong at the same time.

Here are two ASX shares that brokers really like:

Wagners Holding Company Ltd (ASX: WGN)

Wagners is currently rated as a buy by at least three brokers.

This business is a diversified Australian construction materials and services provider. It says it’s an innovative producer of new generation building materials. It makes cement, concrete, aggregates, new generation composite products and aims to provide products that reduces environmental impacts. It also provides transport services, precast concrete and reinforced concrete.

One of the brokers that likes Wagners is Credit Suisse, which has a $2.50 price target on the business. Credit Suisse believes that the mining sector earnings are helping, as well as improving profit margins.

The ASX share’s FY21 result was better than the broker was expecting, leading it to increase its profit predictions for this year and next year.

Wagers said that its outlook for the second half of the year is good due to a few different reasons.

There’s the ongoing contributions from its major contracts in precast concrete and quarries. Next, there is continued strong performance of its bulk haulage business. There’s also increased activity in the domestic pedestrian infrastructure and bridge division of composite fibre technologies (CFT). The company is working on establishing a USA manufacturing facility for CFT after delays caused by COVID-19. Finally, it’s seeking external investment in its low carbon concrete technology.

Goodman Group (ASX: GMG)

Goodman is currently rated as a buy by at least six brokers.

One of the brokers that likes Goodman is Morgan Stanley, which has a price target of $23 on Goodman.

The broker likes the development potential of Goodman, with its large amounts of development land in Sydney.

Last month the industrial property business released its third quarter update. It said the three months to 31 March 2021 reflected a strong operating performance, underpinned by customer led demand for assets in its chosen markets.

The ASX share explained that changing consumption trends across the physical and digital spaces are fundamentally impacting demand. In response, Goodman is developing new spaces, particularly through multi-storey and higher intensity buildings within its urban locations.

In that quarterly update, Goodman said that it had $52.9 billion of total assets under management (AUM). It achieved 3.3% like for like net property income (NPI) growth in its managed partnerships. There was a 98% occupancy rate across the partnerships.

Goodman also said that it has $9.6 billion of development work in progress (WIP).

At the time, it reaffirmed its FY21 operating profit forecast of $1.2 billion, representing earnings per security (EPS) growth of 12%.

According to Morgan Stanley, the Goodman share price is valued at 28x FY22’s estimated earnings.

The post 2 ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

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• What moved the Stockland (ASX:SGP) share price this week?
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• High-flying Goodman (ASX:GMG) share price not expensive after all: UBS

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Catapult Group International Ltd (ASX: CAT) share price has returned from its trading halt and is tumbling lower.

In early trade, the sports analytics and wearables company’s shares are down 12% to $1.92.

Why is the Catapult share price tumbling lower?

The weakness in the Catapult share price today follows the completion of its equity raising.

According to the release, the company has raised $35 million via an underwritten institutional placement of new shares at a price of $1.90. This represents a discount of 12.8% to its last close price.

The company advised that the placement was well supported, with strong investor demand from domestic and international institutions, both existing and new. In addition to this, two Catapult directors will subscribe for $1.35 million of shares on the same terms.

Catapult will now seek to raise a further $5 million via a share purchase plan. Eligible shareholders will have the opportunity to acquire up to $30,000 of new shares at the same price.

Why is Catapult raising funds?

Catapult is raising funds partly to support the strategic acquisition of leading sports software video solutions provider, SBG Sports Software. It also plans to increase its investment in technology, product, data science, and scale capacity, to accelerate its growth strategy.

In respect to SBG Sports Software, it is a global leader of video and data analysis solutions to elite teams in flow sports and motorsport. Management expects the strategic acquisition to accelerate growth in an unpenetrated section of Catapult’s core market.

Catapult’s CEO, Will Lopes, commented: “We are pleased to close the placement process a day earlier than planned. We have been overwhelmed with the endorsement from new and existing shareholders. The significant support we’ve received from the investor community, the board, and employees further cement our belief in the quality of the SBG acquisition and the exciting growth opportunity for Catapult. We are energized to translate this support into new and exciting solutions for our customers.”

The Catapult share price is now trading broadly flat year to date.

The post Why the Catapult (ASX:CAT) share price is down 12% today appeared first on The Motley Fool Australia.

More reading

• Catapult (ASX:CAT) share price halted ahead of $57m capital raising
• Top ASX shares to buy in June 2021
• Catapult (ASX:CAT) share price tumbles 5% on broker downgrade
• Brokers name 3 ASX shares to buy now
• Catapult (ASX:CAT) share price sprints 5% higher on FY21 results

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended Catapult Group International 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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Shares in Kogan.com Ltd (ASX: KGN) have been struggling on the ASX this year. Having started 2021 at $19.42, the Kogan share price is currently $10.86.

So, what’s been driving the e-commerce company’s shares lower? Let’s take a look.

Kogan share price in 2021

The ASX has heard price-sensitive news from Kogan 4 times this year, and each time its share price has fallen in the aftermath.

First business update

The first piece of news from Kogan was a business update that saw its shares fall by 8.4%.

On 9 January, Kogan released an update on its performance for the first half of the 2021 financial year.

Kogan posted increased profits and sales, but it also highlighted $3.4 million worth of charges. These included a logistics charge after a supply chain and warehousing interruption and a write-down of personal protective equipment inventory due to a drop in the number of COVID-19 cases in Australia.

Half-year results

Kogan released seemingly strong half-year results in late February.

Kogan’s gross sales had increased by 97.4%, while its revenue had increased by 88.6%.

Kogan’s adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 184.4%, reaching $51.7 million. The company also announced it had surpassed 3 million active customers.

The results saw the Kogan share price fall by 10.3%.

Second business update

In April, Kogan released an update for the quarter ended 31 March. The update saw its share price fall again – this time by 14.2%.

Within the update, Kogan shared its gross sales had once again increased – this time by 47%. Additionally, its revenue was up by 41% and its gross profit increased 54%. However, its EBITDA fell by 24% over the quarter.

Final business update

The final time we heard price sensitive news from Kogan was on 21 May, when Kogan downgraded its guidance for the 2021 financial year.

The company stated it had encountered operational challenges. These included excess inventory holdings and increased storage costs, supply chain and logistical issues, increased promotional spending, price inflation of many consumer products, and increased international shipping costs.

As a result, the company downgraded its EBITDA guidance to between $58 million and $63 million. That was down from its previous guidance of $67 million to $72 million.

The final piece of news from Kogan saw its shares fall by 14.2%.

Kogan share price snapshot

It goes without saying the Kogan share price has been having a tough time on the ASX lately.

Since this time last year, Kogan shares have fallen 29%. However, they have managed to gain 8.8% over the last 30 days.

The company has a market capitalisation of around $1.1 billion, with approximately 106 million shares outstanding.

The post The Kogan (ASX:KGN) share price has fallen 44% in 2021 appeared first on The Motley Fool Australia.

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• 8 ASX shares that supercharged us out of COVID-19: analyst
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• Which ASX 200 shares are winners from the latest retail trade figures?
• These are the 10 most shorted shares on the ASX

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. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com 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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