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The Elixinol Global Ltd (ASX: EXL) share price has been halted today as the company reported that it would be announcing a potential transaction.

Shares in the small-cap cannabis company have not been trading since the start of today. Consequently, the Elixinol share price remains at 19.5 cents.

What happened to Elixinol

The Elixinol share price will be one to watch in the coming days as its shares begin trading again. According to the release, the trading halt will remain in place until the announcement. Alternatively, when trading commences on March 8. Whatever is earlier.

The potential transaction is yet to be announced. Elixinol has stated that it wasn’t aware of any reason why the halt should not be granted. 

Full year results

Notably, the company recently released its full-year results on February 26. Its shares have since nosedived, shedding around 9%.

While much of the past 12 months has been challenging for traditional retailers, we made great strides forward in our pursuit of sustainable growth and improved capital efficiency. Our strategy to reduce our cost base and shift the business towards higher margin channels, while bringing new products to market and entering new categories, is starting to show success via an improving bottom-line.

More reading

• Why ASX 200 retail shares like JB Hi Fi (ASX:JBH) are outperforming
• Thursday’s top performing ASX 200 shares at the end of the session
• The Core Lithium (ASX:CXO) share price slips today
• Black Rock (ASX:BKT) share price falls on FIRB outcome
• Pointsbet (ASX:PBH) share price loses 6%. Here’s why

Motley Fool contributor Daniel Ewing 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 broader S&P/ASX 200 Index (ASX: XJO) is sold off today, down 0.8% at the closing bell.

ASX 200 shares are widely following the lead of US share markets, which fell yesterday (overnight Aussie time) on investor fears of rising inflation.

But not all Aussie shares are slipping.

The JB Hi Fi Ltd (ASX: JBH) share price closed up 2%. And gaming stock Aristocrat Leisure Ltd‘s (ASX: ALL) share price ended the day up 2.3%.

Both these companies fall into what you may have heard called discretionary retail. That is, they sell items that you may want to have but most likely don’t really need to have. Like that newer model TV. Or the super-cool drone you’ve had your eye on.

Non-discretionary retailers, on the other hand, sell items like bread… or toilet paper. The essential stuff you can’t really do without.

Cashed up consumers with pent up demand

The pandemic, somewhat counterintuitively, has sent average household savings up far higher than before COVID struck. That’s thanks to record levels of government stimulus for both businesses and households in most developed nations while many folks remained stuck at home.

According to Bloomberg:

Consumers in the world’s largest economies amassed [US]$2.9 trillion in extra savings during Covid-related lockdowns… Half that total — $1.5 trillion and growing — is in the U.S. alone, the data show…

The optimists are betting on a shopping spree as people return to retailers, restaurants, entertainment venues, tourist hot spots and sports events as well as accelerate those big-ticket purchases they held back on.

The same story is playing out Down Under. According to the Australian Financial Review, “Australian households saved $187 billion over 2020, more than the previous 3½ years combined”.

Advantage ASX 200 discretionary retail shares

In a live Webinar yesterday, Bell Asset Management’s Senior Global Equities Analyst, Nicole Mardell said 2021 offers some particularly appealing opportunities in consumer discretionary shares:

Within the discretionary space there’s a lot of pent-up demand that’s still to be realised across a number of subsectors. The consumer represents about 75% of the US economy, and that consumer has just been flooded with a whole bunch of cash. And they’re still in lockdown.

Consumers also make up a huge chunk of the Australian economy, some 65% or so. And while cashed-up consumers are unlikely to buy more bread, they’re quite likely to splurge on those non-discretionary items they’ve been eyeing.

And that could spell good news for the share prices of leading ASX 200 retailers.

More reading

• Will the Kogan (ASX:KGN) share price outperform in 2021?
• Growth outlook fails to save the Aristocrat share price today
• Is the Harvey Norman (ASX:HVN) share price next to do a capital return cashback?
• These ASX retail shares are smashing sales expectations
• Is the JB Hi-Fi (ASX:JBH) share price a buy after reporting?

Motley Fool contributor Bernd Struben 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) finished the day 1.15% lower, tipping just under 7000 points once more, to 6987 at the close. Rather than bucking the trend of the US market like it did yesterday, ASX shares followed suit today.

Healthcare led the losses, dropping a staggering 3.7% across the sector in the session. Healthcare heavyweight, CSL Ltd (ASX: CSL) plunged 4.27% despite no news out from the biotherapeutics company.

However, let’s not dwell, and instead take a look at the 3 best performing shares in the ASX 200 today.

These ASX 200 shares pulled it together today

Out of the ASX’s top 200 shares, 150 were in the red by the end of the session. So what gave the top 3 that extra pizzazz on an otherwise disappointing day.

GPT Group (ASX: GPT)

The diversified property group managed to pull ahead into the green while leaving its ASX 200 peers in the dust. GPT climbed an impressive 3.4% by the end of the session. That brings GPT’s share price to a fall of 20% over the last 12 months.

Adding confusion, there appears to be no news out from GPT today. However, a few macro factors could be leaning into a stronger price. Firstly, value stocks are holding reasonably during this recent market drop-off. UBS analyst Pieter Stoltz also recently inferred the expectation for value shares to outperform this year.

Furthermore, as published by The Sydney Morning Herald, the Covid-19 vaccine is showing early signs that it could be reasonably effective against other strains. This is good news for any industry that has been impacted by and continues to be suppressed by the pandemic. For GPT as an owner and operator of multiple retail and office assets, any further signs towards a promising return to normal are good for business.

Cleanaway Waste Management Ltd (ASX: CWY)

The waste management company spent most of the trading sideways, but after entering and then coming out of a trading halt, Cleanaway surged into the close. The Cleanaway share price finished the day up 4.9%.

The big news event is that Cleanaway is in talks to acquire one of its competitors, Suez. The France-based company serves over 4 million residents locally in Australia. The deal is rumoured to be around $2 billion. Importantly, all the details are yet to be finalised and discussions are still ongoing.

Cleanaway finished as the best performing share in the ASX 200, after resuming trade.

Computershare Ltd (ASX: CPU)

Computershare was the quiet achiever today. Although the company didn’t post any announcement or developments, the Computershare share price gradually moved upwards throughout the day. The world’s largest share registry put much of the ASX 200 to shame, with a significant 4.6% gain.

Given the maturation of the company and the space it operates in, shareholders may be viewing Computershare as a decent balance between growth and value in this market. This hypothesis could be supported by the change in substantial holding notice posted earlier in the week which indicated Australian Super had increased its holdings of the company.

More reading

• ASX 200 sinks, Xero reveals acquisition, ARB driven higher
• CSL (ASX:CSL) share price is now down 12% in 2 weeks
• Cleanaway (ASX:CWY) share price swept up in >$2bn acquisition rumour
• Why are these ASX 200 healthcare shares sinking today?
• ANZ (ASX:ANZ) share price outperforms on broker “buy” upgrade

Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Core Lithium Ltd (ASX: CXO) share price has been falling today after the company announced a new acquisition this morning. Shares in the company are currently trading 2.27% lower at 22 cents.

What happened

In today’s release, Core Lithium advised it has acquired the right to pegmatite mines in the Northern Territory. The company has an option agreement to acquire the six mineral leases containing more than 30 lithium pegmatite targets. Furthermore, the mines are in close proximity to the company’s Finniss Lithium Project.

The company notes that the mineral leases have a history of tin and tantalum mining. As the company operates a mine close-by it is familiar with the chemistry of the pegmatites (igneous rock on which the elements form).

What now

The company now plans to start assessment drilling the lithium pegmatite targets as the 2021 field season commences. Approvals are expected to be received next quarter.

Core Lithium also outlined its intentions to complete the acquisition of these assets in 2021 and, all things going well, to extend the lifetime of the mines.

Nevertheless, it should be noted that it’s the first company to physically drill and explore this site. While lithium-rich pegmatite systems are common, it is by no means a guarantee that lithium will be observed.

Management comments

Commenting on the news, Core Lithium managing director Stephen Biggins said:

This new acquisition of multiple pegmatite mines adjacent to the Finniss Lithium Project has the potential to significantly accelerate Core’s resource expansion plans. The expected increases in resources from this deal and our well-funded resource drill programs at Finniss this year should provide a strong platform for extending and expanding production of lithium from the project as lithium prices increase.

Spodumene and lithium chemical prices have increased over 50% from lows in 2020, and as Australia’s most advanced lithium developer, Core is right at the front of the line of new lithium production in Australia.

The Core Lithium share price has performed well over the last year, gaining 347.5%

More reading

• Black Rock (ASX:BKT) share price falls on FIRB outcome
• Pointsbet (ASX:PBH) share price loses 6%. Here’s why
• ASX 200 sinks, Xero reveals acquisition, ARB driven higher
• Why has the BPH Energy (ASX:BPH) share price tanked 36% today?
• What is an ex-dividend date, and can you profit from it?

Motley Fool contributor Daniel Ewing 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 Black Rock Mining Ltd (ASX: BKT) share price has fallen in late afternoon trade. This comes after the company received news from the Commonwealth Treasurer on the POSCO equity investment. At the time of writing, the graphite developer’s shares are down to 14 cents.

Established in 2000, Black Rock is an Australian mining company focused on developing its Mahenge Graphite Project in Tanzania. It is known to be the world’s fourth-largest graphite resource. Thus, indicating huge potential for the future. Indeed, demand for graphite has grown considerably and is expected to double in the next decade. This is due to the strong adoption by consumers for batteries in electric vehicles and other emerging applications.

So let’s take a closer look at what was in the announcement.

FIRB outcome

Black Rock has received a positive outcome from the Foreign Investment Review Board (FIRB) decision. According to its release, Black Rock advised that the Commonwealth Treasurer, acting on the advice of the FIRB, has approved POSCO for a 15% interest in Black Rock. Nevertheless, the Black Rock share price is in negative territory. 

Consequently, POSCO will invest US$7.5 million as part of its Subscription & Umbrella agreements. The successful result will enable both companies to form a strategic alliance for the development of the Mahenge Graphite Project.

Currently, Black Rock and POSCO are continuing to work together to satisfy the remaining conditions for Tanzanian Government Fair Competition Commission approval. It is expected that this will be procedural and routine.

In the near future, Black Rock will hold a general meeting to obtain shareholder approval for the POSCO transaction. Should the company get the green light, it will issue over 126 million shares to POSCO at a placement price of 8.2 cents apiece.

What did management say?

Black Rock managing director and CEO John de Vries commented:

Access to POSCO’s equity contribution of US$7.5m enables Black Rock and our 100% owned Tanzanian subsidiary Mahenge Resources Ltd, to complete detailed engineering, early site clearance planning and commercial scale product qualification. With this, the Mahenge Graphite Project will be positioned to complete required financing in an efficient and timely manner.

The Company anticipates site works in the second half of CY2021, pending resolution of the Government of Tanzania Free Carry Interest Agreement.

About the Black Rock share price

The Black Rock share price has gained close to 250% in the past 12 months, and 45% year-to-date. Interestingly, the company’s shares have raced higher on the back of renewed investor confidence in the materials sector.

Based on the current share price, Black Rock commands a market capitalisation of around $100 million.

More reading

• The Core Lithium (ASX:CXO) share price slips today
• Pointsbet (ASX:PBH) share price loses 6%. Here’s why
• ASX 200 sinks, Xero reveals acquisition, ARB driven higher
• Why has the BPH Energy (ASX:BPH) share price tanked 36% today?
• What is an ex-dividend date, and can you profit from it?

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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Pointsbet Holdings Ltd (ASX: PBH) shares fell sharply today following news a fellow Sydney bookie is making preparations for an initial public offering (IPO). By the market’s close, the Pointsbet share price had slumped 6.27% to $13.75.

Let’s take a closer look.

A new horse on the track?

The Pointsbet share price was on a losing streak today after The Australian Financial Review (AFR) reported Randwick Racecourse-based Bookmaker BlueBet is gearing up for an IPO in the first half of 2021. The company’s market capitalisation is expected to exceed $150 million. 

AFR further noted that BlueBet is estimated to have “…annual revenues in the hundreds of millions of dollars.”

With the support of brokers Ord Minnett and Morgans, BlueBet is preparing for an upcoming roadshow.

In further news weighing down the Pointsbet share price, yesterday the company announced that UBS Group has ceased to be a substantial shareholder as of 26 February 2021. On that day, the trading volume for Pointsbet shares was 2.2 million, compared to its average five-day volume of approximately 1.2 million shares.

Investors sell after first-half results

In its latest earnings report, Pointsbet posted a net loss of $85.6 million for the first half of FY21 (1H21). This compares to a net loss of $32.3 million in 1H20.

Loss per share was 47.6 cents in 1H21 vs 25.9 cents in 1H20.

1H21 revenue from ordinary activities jumped 174% compared to the prior corresponding period (pcp), totalling $75.1 million.

Pointsbet advised that highlights for the 1H21 period included a $353.2 million capital raise completed in September 2020 and being admitted to the S&P/ASX 300 Index (ASX: XKO) on 22 June 2020.

As of 31 December 2020, Pointbet’s Australian business had 142,992 active clients and its United States business had 68,094 active clients. This represents increases of 77% and 222%, respectively, compared to the pcp. 

Pointsbet share price snapshot

Pointsbet is an online bookmaker with operations in Australia and New Jersey, USA.

The Pointsbet share price has gained 24.55% over the past six months and a whopping 275% over the past year.

Pointsbet has a market capitalisation of around $2.7 billion and there are presently 183.4 million shares outstanding.

More reading

• Growth outlook fails to save the Aristocrat share price today
• PointsBet (ASX:PBH) share price falls despite 174% revenue growth
• Why Computershare, IAG, Northern Star, & PointsBet shares are pushing higher
• Here’s why the PointsBet (ASX:PBH) share price is surging 6% higher

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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The S&P/ASX 200 Index (ASX: XJO) fell by 0.8% today to 6,761 points.

There was another selloff in international markets, particularly with US tech shares. This caused a knock-on effect to the ASX share market.

Here are some of the main pieces of news:

Xero Limited (ASX: XRO)

The Xero share price ended the day lower by 2.6% despite announcing an acquisition that management were pleased with.

The ASX 200 tech company announced that it’s buying Planday for an upfront cost of €155.7 million, with 45% being paid in Xero shares and the rest in cash. Another €27.8 million could be paid based on product development and revenue milestones.

What does Planday do? It’s a leading workforce management platform with more than 350,000 employees across Europe and the UK that simplifies employee scheduling, allowing businesses to forecast and manage their labour costs. Its systems already integrate with Xero, other accounting solutions and third-party workforce-related apps, to deliver a real-time view of staffing needs and payroll costs, alongside key business performance metrics.

Xero said that when Planday’s technology is combined with an accounting solution, like Xero, it can provide insights to a business or its advisor that helps them to change employee levels to match the trading conditions and be in charge of labour costs.

The CEO of Xero, Steve Vamos, said:

The acquisition of Planday aligns with our purpose to make life better for people in small businesses and their advisors. Planday’s workforce management platform helps small businesses to respond to the rapidly changing nature of work. Planday also addresses the growing need for flexibility and rising and compliance demands within the workplace.

ARB Corporation Limited (ASX: ARB)

The ARB share price ended higher by around 3% after also announcing an acquisition.

ARB revealed it is purchasing Auto Styling Truckman Group Limited.

Truckman is the leading manufacturer and distributor of utility accessories in the UK, principally focused on rear of vehicle products as canopies, bed liners and general utility vehicle products.

The ASX 200 share said that the business is the leading brand leader in the UK. Management said that this business meets its aim of expanding international distribution and aligns with its evolving product strategy.

In a positive sign for employees, ARB said it would retain all existing staff and management. The business will continue to operate in the usual way with the added support of ARB’s expertise and resources. The chair and managing director, Michael Wheeler and Richard Langman, will continue to manage the business.

The maximum net cash purchase price is £21.9 million, including £10 million at completion, deferred payments of £4 million and a further amount of up to £7.9 million subject to performance hurdles over the next three years.

This purchase is being funded from its existing cash. It’s expected to operate profitably from the start of ARB’s ownership, effective 2 March 2021.

Myer Holdings Ltd (ASX: MYR)

The Myer share price fell by 11% today after reporting its FY21 half-year result.

Myer reported that its total sales dropped by 13.1% to $1.4 billion, however online sales climbed by 71% to $287.6 million.

The ASX retail share revealed that its operating gross profit dropped 14.3% to $539.8 million, whilst the cost of doing business decreased by 20.9% to $325.2 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 1.7% to $214.6 million and earnings before interest and tax (EBIT) went up 2.7% to $109 million.

Net profit after tax (NPAT) grew by 8.4%, which excludes implementation costs and individually significant items, to $42.9 million. Statutory net profit after tax grew 76.3% to $43 million.

Myer decided not to pay a dividend, though its net cash improved by $98.2 million to $201.1 million.

Tech shares sold off

There were a number of ASX tech shares that dropped today.

The Afterpay Ltd (ASX: APT) share price fell 2%, the Zip Co Ltd (ASX: Z1P) share price fell 4.4%, the WiseTech Global Ltd (ASX: WTC) share price dropped 2.2% and the Appen Ltd (ASX: APX) share price fell 3.1%.

Some of the smaller tech businesses also dropped, including the Kogan.com Ltd (ASX: KGN) share price which dropped 1% and the Temple & Webster Group Ltd (ASX: TPW) share price which fell 2.6%.

More reading

• Is Altium’s (ASX:ALU) dividend growth star fading?
• Meet Sharesies, the ASX’s newest brokering app
• ANZ (ASX:ANZ) share price outperforms on broker “buy” upgrade
• Myer (ASX:MYR) share price plummets on first-half results release
• The ARB (ASX:ARB) share price moving up on $40 million acquisition

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool Australia has recommended ARB Limited and 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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The BPH Energy Ltd (ASX: BPH) share price has had a dramatic day today. BPH shares started the day at 16 cents a share. But the BPH share price plummeted 36.36% to just 10 cents a share in afternoon trading before being placed in a trading halt.

This latest move gives back most of the gains BPH investors have enjoyed since the company rocketed from 5 cents a share to as high as 33 cents in late January.

So what on earth is going on with this ASX energy company?

Well, unfortunately, we don’t know too much yet, that’s certain. But here’s what we do know.

BPH share price in a trading halt

The BPH share price was having a fairly uneventful day, bobbing along at around 16 cents per share. Until midday, that was. BPH shares started dropping soon after noon, with the selling accelerating around 1pm. That’s when the BPH share price hit 10 cents. At 2.02pm, BPH announced to the ASX that trading would be paused pending a further announcement.

At 2.48pm, the company released another announcement. This one told investors that BPH had requested an immediate halt to all trading of shares and options “pending an announcement to be made by the company to respond to an ASX price and volume query”.

It went on to say the following:

The trading halt is necessary to assist the company in managing its continuous disclosure obligations as the company expects to make a material announcement to the market in relation to the stated purpose.

The company will continue to be suspended until 8 March, or when the company makes another statement. At the time of writing, that is all the information available.

What’s been happening lately?

BPH Energy shareholders have had a rollercoaster of a ride over the past few months. This is the second trading suspension the company has faced in the past month alone.

It was only back on 17 February that shares were last suspended. Back then, it was due to several reports that implied BPH’s proposal to use its PEP11 oil project in the Sydney basic to investigate the potential for a carbon, capture and storage project would be rejected by the New South Wales government.

In response, BPH released a statement that pointed out that the project would need to be blocked at the federal government level if it was to be derailed at all. And that’s the last we’ve officially heard on this interesting saga to date.

It’s possible that today’s moves are the result of news of further development in this story (even though that doesn’t appear to be public knowledge just yet). But, for now, we shall have to wait and see.

More reading

• Why did the BPH Energy (ASX:BPH) share price tank 24% today?
• Why BPH Energy (ASX:BPH) shares are now in a trading halt
• Why the BPH Energy (ASX:BPH) share price is crashing 21% lower today

Motley Fool contributor Sebastian Bowen 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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You will hear terms such as ‘ex-dividend’ and ‘ex-dividend date’ quite frequently in the course of investing in ASX dividend shares. Shares will periodically be described as ‘going ex-dividend’, or perhaps blamed for a price drop using this excuse. So what is meant by this term, and what does it mean for your investing. Perhaps more importantly, is this fabled date something you can use to your advantage as an ASX dividend investor?

An ex no one wants to break up with

Let’s start from the start. A dividend is a payment that a company makes to its shareholders. In Australia, this is normally carried out every six months, although some companies pause or defer dividends for various reasons.

But how long do you have to own the shares to receive a dividend if the company pays one out? Well, that’s what the ‘ex-dividend date’ tells you. When a company announces a dividend, it will normally give investors 3 dates: an ex-dividend date, a record date, and a payment date. The ex-dividend date is the last day to buy the shares if you want to receive the dividend.

The following day is normally the record date, and that’s when the company will note who owns its shares and who will be receiving the payments. The payment date is when the dividends are officially dished out.

Can you trade the ex-dividend date?

The more entrepreneurial readers out there might be wondering if it’s possible to somehow jump into a share before the ex-dividend date, hop on the record, and then sell out after the dividend share goes ‘ex-dividend’. Good thinking. But unfortunately, this strategy rarely works, if ever. See, the market is fairly efficient with these things. All investors know when a particular ex-dividend date is for (usually) weeks before it occurs. As soon as the company goes ex-dividend, the market assumes that the cash that is about to be paid out has left the company forever (which is true). Thus, the company immediately becomes less valuable. And this is reflected in the said company’s share price with immediate effect.

Say a company with a share price of $20 tells investors it will pay out a dividend of $1 per share. You can reasonably expect that the first day after this company goes ex-dividend, it’s share price will open $1 lower at $19. Of course, this is by no means guaranteed. The market could be having an exceptional stong day and the share price actually rises. But most of the time, it will normally play out along this line. It’s certainly not some kind of loophole you can efficiently and repeatedly.

If you want a real-life example, just look at the Platinum Asset Management Ltd (ASX: PTM) share price this week. Platinum went ex-dividend on 1 March. On 2 March, Platinum shares opened 2.1% lower, which is almost exactly half of the company’s current dividend yield of 5.2%. Exactly what should logically happen.

As the famous saying goes, there’s no such thing as a free lunch. That extends to ASX dividend shares and ex-dividend dates too.

More reading

• ASX 200 up 0.3%: Mesoblast raises US$110 million, tech shares rebound
• Why Limeade, Oil Search, Platinum, & Whispir shares are sinking
• Top brokers name 3 ASX shares to sell today
• ASX 200 drops, Appen sinks, Nine jumps
• Platinum (ASX:PTM) share price on watch after strong profit growth

Motley Fool contributor Sebastian Bowen 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 Tasman Resources Ltd (ASX: TAS) share price surged an incredible 85.2% this morning before the company entered a trading halt around midday.

By the time the ASX approved Tasman’s request for a trading suspension, the Tasman share price was swapping hands for 10 cents each – up 4.6 cents on yesterday’s close. At one point today, its share price hit a 52-week high of 12 cents.

Tasman Resources Ltd is a Perth-based Australian exploration company focusing on exploration projects with the potential to deposit a wide range of precious and base metals, including gold, silver, copper, zinc, lead, nickel, and uranium. Its projects are Lake Torrens Project, Pernatty Project, Parkinson Dam Epithermal Gold-Silver (Lead-Zinc) Project, and Vulcan prospect.

Let’s take a closer look.

Why is the Tasman share price rocketing?

In an announcement to the ASX this morning, Tasman Resources declared it had struck “massive” amounts of iron ore at its Lake Torrens site in South Australia.

The site exploration is in partnership with Fortescue Metals Group Limited (ASX: FMG). Fortescue drilled the holes at the site, located 30km north of BHP Group Ltd’s (ASX: BHP) Olympic Dam mine.

In one drilling spot, Tasman discovered rock comprising 70-100% iron ore near the surface. Deeper exploration led to the discovery of rock consisting of 40-70% iron ore.

At the second drill spot, the company advised it had again found “massive” iron ore amounts.

Trading Economics says iron ore is at its highest price in at least 5 years. As of writing, one tonne was selling in the commodities market for USD 175. In June 2016, the mineral was trading at around USD 50 a tonne – a 250% increase. Yet, many analysts are predicting the price of iron ore to fall for the foreseeable future.

Investors seem to believe Tasman has struck the proverbial gold mine.

Tasman share price snapshot

Tasman Resources share price has gone from strength to strength. This time last year, shares in the mining company were trading at a low of 2.1 cents each. That’s an eye-watering 400% increase over the period.

The company’s market capitalisation is $33 million.

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Motley Fool contributor Marc Sidarous 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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