Tag: Motley Fool

The Zip Co Ltd (ASX: Z1P) share price was out of form in March and tumbled notably lower.

In fact, with a decline of 29% over the period, the buy now pay later (BNPL) provider’s shares were among the worst performers on the S&P/ASX 200 Index (ASX: XJO).

Why did the Zip share price crash lower?

There appear to have been a number of catalysts for the weakness in the Zip share price in March.

One of these was broad weakness in the tech sector during the month caused by rising bond yields. This hit the BNPL sector harder than most due to lofty valuations and concerns over the potential for borrowing costs to increase.

Fellow BNPL providers Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL) fell 15% and 24%, respectively, over the month.

What else happened?

Also weighing on the Zip share price was a broker note out of UBS.

While the broker has been extremely bearish on Afterpay for some time, it had been relatively positive on Zip until last month.

On 10 March, UBS downgraded its shares to a sell rating with a $6.40 price target.

Even after its decline in March, based on the current Zip share price, this price target implies further downside of over 13%.

Despite noting that Zip is growing quicker than Afterpay at present and expecting its strong form to continue in the short term, UBS has concerns about Zip’s significant execution risks and mounting capital requirements.

It appears to believe that the company is likely to require additional external funding to support its receivables growth.

It’s not all bad news

While the performance of the Zip share price in March was disappointing, it is worth noting that it is still smashing the market year to date.

The company’s shares are up 32% in 2021, compared to a 15% decline by Afterpay and a modest 1.6% gain by the ASX 200.

More reading

• These were the worst performing ASX 200 shares in March
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 finishes quarter strongly, Zip partners with JB Hi-Fi, Suncorp gives flood update
• Is the ASX tech sector in for more pain?
• Afterpay (ASX:APT) also signs deal with JB Hi-Fi & The Good Guys

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 ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle 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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PRESS RELEASE (EMBARGOED until after 11.59 pm, March 31):

Investment advisory business The Motley Fool has today announced it will no longer attempt to educate its members and readers against the perils of baseless stock market speculation, and will instead seek to capitalise from the growing trend. Also, and related, it sees a growing opportunity in electronics retailing, and will diversify its business by entering this exciting sector.

Formed in the US in 1993, and doing business in Australia since 2011, The Motley Fool has long considered itself a safe-haven from stock market speculation, instead priding itself on educating investors to help them find market-beating stocks and develop a long-term investing mindset. 

Unfortunately, the recent speculative mania around GameStop (and the subreddit, Wall Street Bets) has convinced the company that the effort has come to naught. So, in a move described by Motley Fool spokesperson Flora Pilo as ‘necessary’, the company will now seek to cash in on the investor and consumer interest in two main ways.

LAUNCHES NEW RETAIL OFFERING

On the heels of renewed interest in US business GameStop, The Motley Fool is today announcing it will be entering the exciting electronics retail sector in Australia. The new stores, branded FoolStop, will sell gaming consoles, games and recorded entertainment. 

After an extensive ideation process, the new logo will be: .

(The ‘full stop’ punctuation mark. Geddit… FoolStop / full stop!)

Pilo said, “We are also excited to have signed a deal with Atari to launch Pong 2 on the Atari 2600, exclusively at FoolStop”. In addition, FoolStop will stock the largest range of audio cassette tapes and players in the country and will dedicate space in each store to laserdisc movies.

In choosing the name, The Motley Fool wanted a brand that incorporated both the company’s heritage and the renewed investor interest in the suffix ‘—Stop’, and is hoping to capitalise on that interest by listing on the ASX in exactly 12 months time. Indications from investment bankers are that adding ‘Stop’ should increase interest from retail shareholders by around 1000-fold, and could see the company valued at upwards of $1.4 billion.

In the never-ending quest for search-engine relevance, the logo — . — should also drive a spike in traffic, as people accidentally put full-stops into their search engines, or their cats walk over their keyboards. It is early days, but that could as much as double the brand value, and The Motley Fool is actively engaging with domain squatters to see if a trade sale of the business may deliver even more value, for search engine traffic, alone.

Lastly, The Motley Fool has submitted an application to trademark the full-stop and will be collecting royalties on its use. Please note that if the application is successful, the royalties will be back-dated to today, and we have deals in place with the major software companies to track usage and invoice customers. 

Our lawyers suggest that you commence using alternative punctuation immediately. (And please note that the ellipsis “…” will be charged as three full-stops.)

We apologise for any inconvenience.

The Motley Fool will be crowdsourcing equity to fund the new business.

Offers (and acceptances) will only be made via Reddit and Twitter, where experience shows users are more ‘risk tolerant’ and prepared to ‘invest’ for reasons other than economic return. 

(However, you can click here to email us an expression of interest and we’ll send you a Twitter link.)

Targeting inexperienced or easily influenced investors on Reddit may be fortuitous in the very, very, very unlikely event that FoolStop isn’t admitted into the ASX20 in the first three months of existence as a public company (or, goes broke). But, you’ve gotta take a punt, sometimes.

MOTLEY FOOL CHANGES ADVICE APPROACH

Separately, but related, the Reddit-inspired surge in investing interest, globally, has prompted a strategic shift in The Motley Fool’s investment advisory business.

There are a number of planks to this new strategy.

Firstly, we announce the launch of Motley Fool Day Trader. This new Motley Fool service is being trialled today only, but, if successful, will be updated annually.

While ‘annually’ seems remarkably tardy for a service billing itself as ‘Day Trader’, we’re mindful that short-term trading can be challenging, and in the event that somehow most of our members’ money is lost to taxes, brokerage (and maybe even some losses… I mean, it’s possible…), that gives them 12 months to save up to have another go.

Secondly, in the wake of the Reddit / Wall Street Bets phenomenon, The Motley Fool will advocate for regulatory changes. 

No, not to have more educated investors. Or more protections.

Instead, we will petition ASIC and the media to stop referring to ‘investing’ and start using the term ‘betting’, instead. And in a good way.

We will encourage newspapers to stop printing (on paper and online) information like dividend yields and price/earnings ratios, which may otherwise cause some bettors (note, they’ll no longer be called ‘investors’) to pause before plonking down their hard-earned on something they just read in a subreddit.

Additionally, we’ll stop reporting on 1 month, one year, and ‘all time’ share price performance, too. Our reporting and analysis will concentrate on the last 5 seconds, 5 minutes and 1 hour, only.

It is also important that we ‘get with the times’, so henceforth, we’ll be accepting (and preferring) the alternative spelling ‘stonks’, which the cool kids use to show they’re one of the in-crowd.

We don’t really know what ‘stonks’ is actually supposed to mean, but we assume it means the user is sufficiently cool, cynical and snarky — perfect for Twitter!

Pilo remarked:

We’ve seen the error of our ways. We used to do our very best to help our members and readers amass wealth slowly and steadily, buying quality businesses and letting time do the work. No more! We will, instead, take to reddit with gusto, seeking to create a movement of people prepared to throw their money at anything that moves, usually prompted by righteous indignation, which will have no impact, but feels good, even if we lose money. Let’s stick it to The Man.

Of course we want to strenuously deny any calculated planning, here. There is only a casual, potential, unrelated and unintentional connection between our new reddit-based strategy and the launch of FoolStop. Any speculation that we’re trying to sound or look like a company whose share price was recently launched into the stratosphere is completely coincidental. Promise. Pinky swear!

We know these changes seem sudden. 

But there’s only so long we can continue trying to be the voice of sanity, before just giving up and joining the rush.

Stonks, baby!

FoolStop, ftw!

#YOLO

But we’re not completely heartless. We want to let our loyal members and readers in on the potential bonanza.

But you’ll have to be quick. We can only let you sign up today!

So, to be part of FoolStop and/or get on the waiting list to join Motley Fool Day Trader, please click here and email us your expression of interest.

More reading

• Rhipe (ASX:RHP) share price rises on cyber security acquisition
• Here’s why the Boral (ASX:BLD) share price is storming 5% higher
• Why the Codan (ASX:CDA) share price will be on focus today
• Here’s why the 4DMedical (ASX:4DX) share price will be on watch today
• These were the best performing ASX 200 shares in March

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Rhipe Ltd (ASX: RHP) share price has started the month in a positive fashion.

In morning trade, the cloud and technology solutions provider’s shares are up 4% to $1.62.

Why is the Rhipe share price rising today?

The catalyst for the rise in the Rhipe share price today has been the announcement of a new acquisition.

According to the release, the company has entered into binding legal agreements to acquire EMT Distribution (Australia) and EMT Distribution (Singapore) for $11 million in cash. The agreement also includes potential earn-outs of up to $2 million.

The release explains that EMT is an Australian headquartered cyber security distribution specialist. It focuses on sourcing innovative security software vendors and working with channel partners to deliver both on-premise and cloud-based security solutions. These are aimed at protecting companies against cyber security attacks.

It is currently generating $26 million in sales across its operations in Australia, the Middle East, and Asia.

Management notes that the acquisition strengthens Rhipe’s presence in security software distribution and will expand its offering to the enterprise market. This provides partners with a full spectrum of security solutions from a wide choice of vendors to help them build their own security portfolio.

Rhipe’s CEO, Dominic O’Hanlon, commented: “emt Distribution has an incredible track record in delivering software security products and solutions via their distribution channels. By combining emt’s expertise in security with rhipe’s reach, we will be able to offer partners across APAC effective solutions to protect against growing threats around cyber security.”

“We plan to continue investing in the emt business to support its continued growth, delivering emt’s extensive portfolio of vendor security products to rhipe partners, while providing emt partners with access to SmartEncrypt and rhipe security vendor products. We look forward to welcoming the emt team to the rhipe family and leveraging their outstanding skills and expertise, to deliver greater outcomes for our partners and their customers.”

More reading

• Here’s why the Boral (ASX:BLD) share price is storming 5% higher
• Why the Codan (ASX:CDA) share price will be on focus today
• Here’s why the 4DMedical (ASX:4DX) share price will be on watch today
• These were the best performing ASX 200 shares in March
• AMP (ASX:AMP) share price on watch after announcing CEO change

Motley Fool contributor James Mickleboro 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 Boral Limited (ASX: BLD) share price is on the move on Thursday morning.

At the time of writing, the building products company’s shares are up 5.5% to $5.79.

This latest gain means the Boral share price is now up 16% since the start of the year.

Why is the Boral share price pushing higher?

Investors have been buying Boral shares this morning after it announced the completion of the sale of its 50% share in the USG Boral joint venture to Gebr Knauf KG for US$1.015 billion (A$1.33 billion).

According to the release, subject to finalisation of standard completion adjustments, Boral expects to report a profit on sale after tax of approximately A$450 million.

The company advised that in line with its financial framework, the final sale proceeds of A$1.33 billion will be used to reduce its net debt position from ~A$1.9 billion to its targeted net debt of $1.5 billion.

This will leave Boral with a surplus of approximately $1 billion, which it intends to reinvest in the business and return to shareholders.

On-market buy-back

After taking into account Boral’s future expected operating and cash flow requirements, management has decided to undertake an on-market share buy-back.

The release explains that, subject to prevailing share price and market conditions, Boral intends to buy back up to 10% of shares on issue, or approximately 122 million shares, over the next 12 months. This will be fully funded from the aforementioned sale proceeds.

Boral’s CEO and Managing Director, Zlatko Todorcevski, commented: “The sale of our 50% interest in USG Boral to Knauf for an attractive premium creates substantial value for Boral’s shareholders. The sale enables Boral to reduce net debt to our current target of A$1.5 billion, and create surplus capital available for return to shareholders, which is consistent with Boral’s financial framework. We believe that an on-market buy-back is the most effective method of returning this surplus capital to our shareholders.”

More reading

• BlueScope (ASX: BSL) share price could get cut of Biden’s US$3tn boost
• How are ASX 200 shares faring in the carbon revolution?
• Why Austal, Boral, Spark NZ, & Splitit are tumbling lower

Motley Fool contributor James Mickleboro 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 Codan Limited (ASX: CDA) share price will be on focus this morning following the company’s acquisition announcement. At yesterday’s market wrap, the technology company’s shares finished the day at $15.44.

Can the Codan share price go higher?

It will be interesting to see if investors drive the company’s shares higher following its latest announcement to the ASX.

According to this morning’s release, Codan advised it has entered into an agreement to acquire Zetron, Inc. (Zetron) from JVCKenwood Corporation.

Founded in 1980, Zetron is an American company that manufactures mission-critical communication technologies. Products include voice dispatch, emergency call-taking including next-generation 911 (NG911), mapping, computer-aided dispatch, and fire station alerting. The business operates in an array of industries such as public safety, transportation, utilities, natural resources, healthcare, and academic institutions. Zetron has offices in the United States, Australia, and the United Kingdom.

The acquisition will see Codan make an upfront cash payment of US$45 million for 100% of Zetron’s issued share capital. Codan will use existing cash reserves as well as tap into its recently approved debt facility to fund the takeover.

It’s expected that the sale will be completed before the end of this month, subject to usual customary conditions.

Once under Codan ownership, Zetron is anticipated to contribute roughly $67 million in sales for the next financial year. In addition, earnings before interest, tax, depreciation and amortisation (EBITDA) is forecasted to be at $8 million for FY22. This in turn will make Zetron an earnings-per-share accretive business.

Management commentary

Codan managing director and CEO Donald McGurk commented:

The acquisition of Zetron is in line with Codan’s well-publicised strategy to transform our Communications businesses from products to solutions. This acquisition allows us to capitalise on Zetron’s extensive distribution network, brand strength and customer loyalty.

Codan president for critical communications Scott French added:

…By combining Codan’s Land Mobile Radio products and solutions with Zetron’s Command & Control capability, we will be in a position to better serve the growing NG911 market, whilst maximising value and choice for our customers.

The Codan share price has jumped to almost 180% since this time last year, reflecting positive investor sentiment.

More reading

• Why this fund likes these 3 exciting ASX shares
• 3 ASX shares that just stormed to new 52-week highs
• Why the Hub24 (ASX:HUB) share price is firing up 12% today
• Why Codan, Evolution, Opthea, & People Infrastructure shares are charging higher
• ASX quarterly rebalance: HUB24 joins ASX 200, Brainchip into ASX 300

Motley Fool contributor Aaron Teboneras 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 4DMedical Ltd (ASX:4DX) share price will be on watch this morning. This comes after the company made a late market announcement yesterday regarding a completed share purchase plan (SSP).

Successful completion of SSP

The 4DMedical share price could be on the move today as investors took the time to digest its latest news.

According to yesterday’s release, 4DMedical advised that it has successfully completed its SSP underpinned by strong support.

The company raised $6 million, doubling the original offer of $3 million due to receiving a number of overwhelming applications. In total 1,873 applications were received by existing eligible shareholders, amounting to $32 million of demand.

The offer price of $1.55 per share represents a 10% discount to the last closing 4DMedical share price of $1.72. 4DMecial stated it will scale back applications, taking into consideration the number of shares applied for, and their current holdings.

Over 3.87 million new shares are scheduled to be issued, reflecting 1.33% of the company’s entire ordinary shares on issue. The newly created shares will be allotted on Wednesday 7 April and be available to commence trading the following day.

This follows the recently successful $40 million institutional placement completed on 4 March 2021.

Comments from the CEO

4DMedical founder and CEO, Andreas Fouras, touched on the company’s plan on how to spend the acquired funds. He said:

The proceeds from the placement and SPP, together with the $28.9 million of funding from the MRFF Frontiers initiative, provide 4DMedical with a significantly enhanced capability to execute the long-term commercialisation strategy for XVD Scanners, which will open up an additional revenue stream for the business and drive the adoption of XV LVAS at medical institutions.

The Company now also has balance sheet flexibility to pursue future growth opportunities.

4DMedical share price summary

Over the past 12 months, the 4DMedical share price has increased close to 10% but is down around 30% year-to-date. The company’s shares reached an all-time high of $2.98 late last year.

On valuation grounds, 4DMedical presides a market capitalisation of about $349.6 million, with 203.3 million shares outstanding.

More reading

• What’s with the 4DMedical (ASX:4DX) share price today?

Motley Fool contributor Aaron Teboneras 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) was on form again in March and recorded a solid 1.8% gain to finish at 6,790.7 points.

While a good number of shares pushed higher with the market, some climbed more than most. Here’s why these were the best ASX 200 performers in March:

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price was the best performer on the ASX 200 in March with a 24.5% gain. This strong gain was driven by the grain exporter announcing new operating initiatives. The include expanding its bulk materials for export, increasing utilisation at the Numurkah and West Footscray processing facilities, and shifting its foods product mix to higher-value products. Management expects the initiatives to boost its operating earnings by $25 million by 2023-24.

Premier Investments Limited (ASX: PMV) 

The Premier Investments share price wasn’t far behind with a 23.3% gain in March. The catalyst for this was the release of a very strong half year result. For the first half of FY 2021, the retail conglomerate reported a 7.2% increase in global sales to $784.6 million and an 88.9% jump in net profit to $188.2 million. A key driver of its growth was the Peter Alexander business, which reported record sales of $207.7 million. This was supported by a jump in online sales and rental and wage subsidies, underpinning a material expansion in its margins.

Crown Resorts Ltd (ASX: CWN)

The Crown share price was on form last month and jumped 18.2%. Investors were scrambling to buy the casino and resorts operator’s shares after it received a takeover approach from Blackstone. The US investment company made an unsolicited, non-binding, and indicative proposal to acquire all of the shares in Crown at $11.85 cash per share. This was a 20.1% premium to its last close price at the time. The Crown board is still assessing the proposal, which was received on 22 March.

Polynovo Ltd (ASX: PNV)

The Polynovo share price was back on form and raced 12.5% higher in March. There appear to have been a few catalysts for this strong gain. One was bargain hunters swooping in after a sizeable year to date decline. In fact, despite this gain, the PolyNovo share price is still down 30% in 2021. In addition to this, a positive broker note out of Ord Minnett and an agreement with major US group purchasing organisation, Premier Inc, supported its shares. 

More reading

• These were the worst performing ASX 200 shares in March
• Is the ASX tech sector in for more pain?
• Why the Wesfarmers (ASX:WES) share price is up today
• ASX 200 jumps 1.35%: Zip inks deal with JB Hi-Fi, Suncorp’s flood update
• Over 1 in 4 Australians are investing in the ASX: report

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 POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended Crown Resorts Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price will be one to watch closely on Thursday.

This follows the announcement of a change of leadership after weeks of speculation.

What did AMP announce?

This morning AMP announced that Francesco De Ferrari will retire from the role of Chief Executive Officer (CEO).

Replacing Mr De Ferrari will be Alexis George from Australia and New Zealand Banking GrpLtd (ASX: ANZ).

Ms George is the Deputy CEO at ANZ and was previously the Group Executive Wealth Australia, overseeing the sale of the business in 2018.

The next steps

According to the release, Alexis George will join AMP in the third quarter of the current calendar year, subject to required regulatory approvals.

Mr De Ferrari will continue to lead AMP during the interim period and ensure a smooth handover to Ms George when she joins.

He will also continue to work in partnership with the Board and lead AMP’s key strategic initiatives. This includes discussions on the proposed transaction for AMP Capital’s private markets business with Ares Management Corporation.

AMP’s Chair, Debra Hazelton, commented: “On behalf of the Board, I would like to thank Francesco for his significant service to AMP and recognise his commitment to a smooth leadership transition. We wish him every success for the future and know he will continue to be the exemplary leader he has been at AMP. As we noted last week, with our portfolio review reaching completion, the Board and Francesco agreed that it is an appropriate time to begin the transition to a new CEO to take AMP forward.”

“A greater leader”

Hazelton spoke very positively about the appointment of Ms George and believes she is the right person to lead the company.

“In Alexis George, we have a great leader and strong fit for the future of our company. On any measure, she has outstanding industry experience in wealth management and banking, and is committed to continue the transformation of AMP’s business, and importantly, our organisation’s culture. Alexis will work with our executive team to complete and build on the strategic initiatives started under Francesco’s leadership and take AMP forward to its next phase of growth.”

ANZ also spoke positively about Ms George and her appointment as AMP’s new CEO.

ANZ’s CEO, Shayne Elliott, commented: “We will all miss her experience, wise counsel and down-to-earth leadership style. However, as one of the most experienced wealth executives in the country, she is ideally placed to lead AMP through its next phase and we all wish her well on the challenge.”

“It is also a good thing our most senior women are being selected for these high-profile and challenging roles. It shows we are providing our people with the opportunities they deserve and Alexis’s appointment as CEO of AMP is ultimately in the best interest of the Australian business community,” he added.

More reading

• 2 high yield ASX dividend shares to buy right now
• ASX banks are facing millions of cyber attacks each day
• AMP (ASX:AMP) share price slides on Ares update
• More Aussies now think shares are better than real estate
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back

Motley Fool contributor James Mickleboro 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) was a positive performer in March. The benchmark index recorded a 1.8% gain to end the period at 6,790.7 points.

Unfortunately, not all shares on the index were able to climb higher with the index. Here’s why these were the worst ASX 200 performers in March:

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price was the worst performer on the ASX 200 in March with a 32% decline. Investors were selling the gold miner’s shares after the Ghanaian government terminated its Bibiani Gold Mine licence. As a result, Resolute has been advised to cease all activities and operations at the site. This is particularly bad timing as the company was in the process of selling the asset to Chifeng Jilong Gold Mining for US$105 million. Investors may be concerned that a capital raising will be required if the sale doesn’t go through.

Zip Co Ltd (ASX: Z1P)

The Zip share price wasn’t far behind with a decline of 29% last month. This decline appears to have been driven by weakness in the tech sector due to concerns over rising bond yields. In addition to this, a broker note out of UBS weighed on the buy now pay later provider’s shares. UBS downgraded Zip’s shares to a sell rating with a $6.40 price target.

Kogan.com Ltd (ASX: KGN)

The Kogan share price was out of form and tumbled 14.2% last month. This was despite there being no news out of the ecommerce company. However, as mentioned above, rising bond yields put a lot of pressure on the tech sector last month. This appears to have weighed on the Kogan share price and sent many investors to the exits.

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price was out of form again last month and dropped 12.9% lower. Investors have been selling the infant formula company’s shares in recent months due to a series of guidance downgrades and its weak outlook. This is being caused largely by weakness in the daigou channel. In addition to this, last month Citi put out a bearish broker note, which had a sell rating and $7.15 price target on its shares.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 finishes quarter strongly, Zip partners with JB Hi-Fi, Suncorp gives flood update
• Is the ASX tech sector in for more pain?
• The Kogan (ASX:KGN) share price has nearly halved in 2021
• Why the Wesfarmers (ASX:WES) share price is up today

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 Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia 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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More reading

• Top ASX shares to buy in April 2021
• 2 top ASX dividend shares to buy this month
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 finishes quarter strongly, Zip partners with JB Hi-Fi, Suncorp gives flood update
• 2 exciting ASX growth shares to buy next month

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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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