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The American Pacific Borates Ltd (ASX: ABR) share price is up 3.53% to $1.76 at the time of writing, following the release of the company’s investor presentation. 

American Pacific Borates is a global speciality fertiliser producer. The company’s Fort Cady Borate Mine in California is a resource where boric acid, gypsum and potassium sulfate (SOP) will be produced for the North American specialty fertiliser market as well as new high-end technologies like electric vehicles and space shuttles.

American Pacific is also developing the Salt Wells Borate and Lithium Projects in Churchill County, Nevada, USA.

What are borates and why are they important?

According to American Pacific, boron is classed as a strategic commodity in many countries including the US.

Borates are the naturally occurring minerals which contain boron. American Pacific points out that plants need boron to grow and humans consume borates through food. 

Most globally produced borates come from mining colemanite, borax or kernite ore. The company’s Fort Cady pursuit mines colemanite.

Boron is used for modern car mechanisms like ceramic brake pads and touch screens. It also plays a role in fibreglass insulation and nuclear reactors.

American Pacific states that renewable energy technologies such as wind turbines and solar PV modules cannot be built without boron.

Investor presentation highlights

In its presentation, American Pacific detailed that it is expecting to sell five key products. Boric acid for industrial use, boric acid for agricultural use, SOP, “boron-enriched” SOP and gypsum.

SOP is a potassium sulfate speciality fertiliser that combines potash and sulfur.  The company states that there is a demand for SOP in the US because of how it benefits crops. For example, crop trials using boron-enriched SOP delivered a doubled yield in broccoli. Gypsum is another sulfate mineral that is also used in fertiliser. 

American Pacific splits the revenue streams of the business as a value driver. The current split is estimated to be 52.6% boric acid, 44.7% SOP and 2.7% gypsum.

Current post-tax, unlevered net present value (NPV) was reported as US$2.02 billion.

The company posted an earnings before interest, tax, depreciation and amortisation (EBITDA) of US$453 million and has set its EBITDA target for Phase 3 of its Ford Cady project to A$6.64 billion. 

American Pacific’s cash at bank balance as of 31 January 2021 was $64.3 million.

American Pacific share price snapshot

On current prices, American Pacific has a market capitalisation of $637.7 million. The company’s shares are up 17% in 2021 so far, and over the previous 12-month period, the American Pacific share price has climbed over 277%.

More reading

• Afterpay (ASX:APT) share price higher following PayPal’s BNPL update
• CBA (ASX:CBA) share price rises as bank cuts savings rate
• Why the Orthocell (ASX:OCC) share price is on the rise
• GameStop, AMC trades temporarily blocked on Square’s Cash App
• RBA stimulus to fuel ‘raging bull market’ in ASX shares. Should you go all in?

Motley Fool contributor Gretchen Kennedy 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 Afterpay Ltd (ASX: APT) share price is pushing higher on Friday following an update from one of its newest and arguably biggest competitors.

In afternoon trade, the payments company’s shares are up 2% to $149.41.

This leaves the Afterpay share price trading just a touch short of its record high.

What was the update?

Overnight, payments giant PayPal released its fourth quarter results and provided the market with an update on how its buy now pay later (BNPL) offering was performing. This follows the launch of the service during the quarter.

For the three months ended 31 December, PayPal delivered total BNPL payment volume of US$750 million. It also finished the period with over 10,000 merchants and nearly 3 million active customers. The company also reported that it experienced a 40% repeat customer rate.

Management commented that the growth in its BNPL service was the biggest positive surprise during the quarter.

What does this mean for Afterpay?

Goldman Sachs has been looking through the result and has made a few observations.

One is that PayPal has facilitated as much gross merchant volume in its first quarter as Afterpay did after five. It was also the same with its customer numbers, which matched what Afterpay achieved after five quarters of operation in the United States.

Though, it is worth noting that PayPal already has a significant customer base to convert into BNPL customers. So, this isn’t a true apples to apples comparison.

The US BNPL market is strong

Another takeaway from this update that Goldman notes is that “the strong launch of PYPL’s service is another data point which suggests BNPL demand in the US is very strong.”

The broker estimates that there are now at least 37 million BNPL accounts that have been registered in the US market. Though, it notes that the number of users is likely to be materially below this figure. This is because there will be consumers using more than one service provider or have registered an account but not used the service.

From these, Goldman Sachs estimates that Afterpay accounts for 8.5 million customers.

It commented: “The latest Sensor Tower data would suggest that APT had reached just over 8mn customers at the end of 31 Dec 2020 (vs. GSe of 7.8mn) and may be over 8.5mn by the end of January. This could suggest some upside risk to our 30 June 2021 target of 10.3mn.”

Is the Afterpay share price in the buy zone?

At this point, Goldman Sachs doesn’t see value in the Afterpay share price and has retained its neutral rating and $99.90 price target on its shares.

More reading

• 2 ASX growth shares to buy right now
• Leading broker tips 3 ASX shares to positively surprise during earnings season
• ASX 200 up 0.9%, Afterpay drops, CBA rises
• 2 ASX shares that humbled successful fundies
• Why the Afterpay (ASX:APT) share price is pushing higher again

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 recommends PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. 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 Commonwealth Bank of Australia (ASX: CBA) share price is up after some of the big four banks cut their savings rates.

According to reporting by News Corp (ASX: NWS), both CBA and Australia and New Zealand Banking Group Ltd (ASX: ANZ) have decided to reduce the interest rates for bank account savers.

ANZ has decided to cuts its savings rate by 0.10% and CBA decided to reduce the interest rate by 0.05%.

News.com.au quoted Canstar executive Steven Mickenbecker, he said: “The low interest rate environment has dealt a major blow to savers, with the average annual interest earnings on bonus savings accounts now $400 less annually than what it was 10 years ago. For some people this could be the cost of their car insurance renewal each year. As savings rates creep ever closer to zero, more savers must surely be changing their savings habits, whether it be by chasing the higher rates that are available or by building a mix of other investments into their portfolio or both.”

At the time of writing, National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) haven’t yet announced any interest rate cuts.

This move may slightly increase the banks’ net interest margin (NIM), which is the profit measure of the margin of when banks are lending out money.

What have recent results looked like for the big four banks?

CBA

The FY20 result reflected the impact of COVID-19 on customers and the economy, however the bank said its performance remained strong due to disciplined execution of the strategy and it continued to improve its balance sheet.

The FY20 statutory net profit after tax (NPAT) dropped 12.4% to $9.63 billion and cash NPAT declined 11.3% to $7.3 billion. The loan impairment expense increased by $1.3 billion to $2.5 billion as the loan loss rate increased to 33 basis points. The net interest margin (NIM) declined by another 2 basis points to 2.07% because of the impact of lower interest rates.

The common equity tier 1 (CET1) capital ratio was 11.6%, which was above APRA’s unquestionably strong benchmark of 10.5%.

The latest released financial result was the FY21 first quarter trading update which showed that CBA generated $1.9 billion of statutory NPAT and $1.8 billion of cash profit, down 16% on the prior corresponding period. CBA said that income was stable, but expenses (excluding customer remediation) were up 2%.

In that quarter to 30 September 2020, the CET1 ratio continued to strengthen as it grew 20 basis points to 11.8%.

The CBA share price has gone up 1.4% today.

ANZ

It wasn’t too long ago that ANZ reported its FY20 result.

Its profit had a difficult year with (continuing operations) cash profit falling by 42% to $3.76 billion. Statutory net profit after tax fell by 40% to $3.58 billion.

When ANZ excluded certain items, the profit decline wasn’t as heavy. Profit before the credit impairments and tax fell by 16% to $8.37 billion. Profit before credit impairments, tax and large notable items only fell by 1% to $10.1 billion.

The total provision charge in the second half was $1.06 billion and followed the $1.67 billion charge taken at the first half. The collective provision balance increased to $5 billion at 30 September 2020. Its gross loans and advances increased by 1% to $622 billion whilst customer deposits grew by 8% to $552.4 million.

ANZ’s common equity tier 1 (CET1) ratio declined by 2 basis points to 11.3%.

More reading

• Westpac (ASX:WBC) share price to close gap with CBA (ASX:CBA) says Morgans
• ASX 200 up 0.75%: REA Group and News Corp impress, big four banks charge higher
• What to expect from the Commonwealth Bank (ASX:CBA) half year result
• This chart shows why the ASX bull market can keep running
• 4 most trusted ASX companies (and the 4 least trusted)

Motley Fool contributor Tristan Harrison 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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Orthocell Ltd (ASX: OCC) shares are edging higher in mid-afternoon trade after the company announced it has been recommended for inclusion on the Australian Prosthesis List. At the time of writing, the Orthocell share price has risen 3.85% to 54 cents.

What’s driving the Orthocell share price?

Investors appear to be pleased with the latest news from the company, pushing the Orthocell share price higher on Friday.

According to its release, Orthocell advised it has received word from the Australian Government Department of Health, that its CelGro Dental product has been recommended for inclusion on the Australian Prosthesis List.

Once on the list, this allows the company to be reimbursed for its products by private health insurance agencies when patients have hospital cover. In a way, it acts as an incentive program that can further promote the take up on CelGro Dental.

Originally, Orthocell expected to be included on the Prosthesis List sometime between the middle and the end of FY21. However, with the date significantly brought forward, the company could achieve its inclusion within the first quarter of the 2021 calendar year.

Orthocell stated that the latest update further advances its position in securing a global distribution partner.

Quick take on CelGro

Orthocell’s lead product, CelGro, facilitates tissue repair and healing in a variety of orthopaedic, reconstructive and surgical applications. This includes treating defects in areas of the body such as tendons, bones, nerves, and cartilage.

Most notably, the collage medical device can be used in dental bone and tissue regeneration procedures. These include dental bone repairs, growth around dental implants in extraction sockets, and tissue regeneration in intrabony defects.

Words from the managing director

Orthocell managing director Paul Anderson hailed the importance of today’s update. He said:

Inclusion on the prothesis list is an important step in gaining reimbursement from private insurers for Striate + (previously named CelGro Dental). This is a significant milestone for our Company that is made possible by our recent Australian TGA approval and clinical data enabling progression towards reimbursement.

How has the Orthocell share price performed lately?

The Orthocell share price has been tracking higher since the start of November, up around 65% over the last three months.

Orthocell shares reached a 52-week high mid-last month on the back of receiving regulatory approval for entry to the United States market.

Based on the current Orthocell share price, the company commands a market capitalisation of roughly $101 million.

More reading

• Why the Orthocell (ASX:OCC) share price is rocketing 23% higher

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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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.

Traders were once again blocked from buying shares of GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC), but this time, instead of Robinhood interfering with the ability to trade, it was Square Inc (NYSE: SQ)‘s Cash App.

Square had been one of the big beneficiaries of the hubbub that was raised last week after Robinhood prohibited its app users from buying shares of AMC, GameStop, and dozens of other stocks as their prices surged during a massive ‘gamma squeeze’ that cost short-sellers billions of dollars. 

The mobile trading platform’s users erupted in anger at only being allowed to sell shares, and Robinhood’s CEO Vlad Tenev has been called to appear before Congress to explain what happened. 

Many Robinhood traders abandoned the app and fled to other online brokerages, with most choosing the Cash App.

But now that Square also blocked buying certain stocks, will it receive the same blowback Robinhood did? Probably not.

Square told investors that it wasn’t involved in the decision; rather, its trade clearinghouse (DTC) Axos caused it, having “significantly increased the capital requirements” to trade four stocks. Cash App said that it disagreed with the decision.

While that was the same explanation as Robinhood gave last week, it took the app almost a day to say it. Initially, Robinhood said the reason was that it always monitors the markets, and because of the volatility, it was making changes to which stocks its users could buy and sell. It was only later that Tenev said it was because its DTC had asked for $3 billion to allow the trades to go through.

Because Square was more forthcoming at the outset, investors aren’t likely to be as upset and penalize Cash App. Buying the restricted stocks was allowed to resume later in the day.

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

More reading

• RBA stimulus to fuel ‘raging bull market’ in ASX shares. Should you go all in?
• Did Robinhood lose its investor base forever?
• GameStop has 1 undeniable advantage
• GameStop effect: 3 more shorted ASX shares that could skyrocket
• These central bankers aren’t worried about share market bubbles. Should you be?

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Square. 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.

The post GameStop, AMC trades temporarily blocked on Square’s Cash App appeared first on The Motley Fool Australia.

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

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The S&P/ASX 200 Index (ASX: XJO) has been on fire this week. Since Monday, the ASX 200 has risen from 6,607 points to today’s 6,819 points (at the time of writing). That’s a hefty rise of more than 3.3%.

Since the index has lost 2.3% over the past year, this week’s rise is a significant one. If we have a couple more weeks like this week, we’ll be back at all-time highs in no time.

So why such a comprehensive jump?

Well, we can probably put it down to the actions of the Reserve Bank of Australia (RBA) this week. On Tuesday, the RBA surprised investors with a startlingly dovish update. The RBA told the markets that it would be doubling down on its quantitative easing (QE) programs, as well as all but promising interest rates will stay at 0.1% until 2024.

As RBA governor Dr Philip Lowe told us, the RBA is waiting for inflation to reach around 3% before he sees any changes to monetary policy. A 3% inflation rate would likely only come with a booming economy with full employment. Until then, we’re still stuck with ‘lower for longer’.

This announcement sent ASX shares into a frenzy. This is because low rates give ‘risk-on’ assets like ASX shares a massive boost, seeing as there are no real alternatives for generating yield in a zero-rate, QE-fuelled environment.

Raging bull… market

According to reporting in the Australian Financial Review (AFR) today, fund managers and economists are in agreement on this, with many commentators predicting “a raging bull market” in 2021 as a result.

The report quotes MST Marquee’s Hasan Tevfik as saying:

RBA stimulus increases the possibility of a raging bull market in equities. The extreme financial repression, which the RBA is trying to orchestrate, should be explosive for debt-financed M&A [mergers and acquisitions].

But the commentary isn’t all ultra-bullish. Some commentators are expecting that the RBA’s actions will fuel what they see as already-existing ‘bubbles’ in financial markets.

Here’s Mr Tevfik again:

We have all the ingredients for an asset bubble to form in housing… Cheap money, rebounding economy, strong consumer sentiment and job vacancies strongly rebounding. There is no bubble today, and the RBA is focused on investor credit growth in the housing market which is under control right now. In six months it could be a very different story…. We are also seeing all the signs of the beginning of an equity market bubble.

Hugh Dive of Atlas Funds Management agrees. He told the AFR that while there was no ASX-wide bubble, “there are pockets of what looks like a dangerous bubble, namely tech and buy now, pay later”.

So should ASX investors go all in?

Well, these commentators are suggesting that conditions remain very fertile for ASX shares in the short term, but they are also warning investors not to get too carried away. We are seeing some interesting signs of late of frenzied speculative behaviour, such as the GameStop Corp (NYSE: GME) saga last month.

It’s normally speculative behaviour that signals the ‘top is nigh’ for a bull market. But with the RBA still steering the ASX ship into uncharted monetary policy waters, who knows where we’ll end up on this one. Perhaps keeping a foot in both camps, with a solid ASX share portfolio as well as a strong cash buffer, is the best path to tread.

More reading

• GameStop, AMC trades temporarily blocked on Square’s Cash App
• Westpac (ASX:WBC) share price to close gap with CBA (ASX:CBA) says Morgans
• ASX 200 up 0.75%: REA Group and News Corp impress, big four banks charge higher
• Did Robinhood lose its investor base forever?
• GameStop has 1 undeniable advantage

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 Medibank Private Ltd (ASX: MPL) share price is edging higher on Friday after the release of an announcement.

At the time of writing, the private health insurance company’s shares are up 0.5% to $3.04.

What did Medibank announce?

This morning Medibank announced that is strengthening its focus on preventative health and doctor-led partnerships through the acquisition of a non-controlling 33.4% economic interest in the Myhealth Medical Group.

According to the release, Myhealth is a leading operator of primary care clinics. It was founded in 2007 and delivers more than 2.5 million patient consultations each year.

The release notes that Myhealth is growing very quickly and has tripled its number of clinics over the last five years. As a result, it now has a network of 86 clinics in prime locations across New South Wales, Victoria, and Queensland.

Medibank is acquiring the 33.4% economic interest in Myhealth for a total expected consideration of $63 million. This will be funded entirely from existing cash resources and is expected to complete by 31 March 2021.

Management notes that the transaction is expected to be immediately earnings per share accretive. Myhealth is forecast to deliver operating earnings of approximately $21 million in FY 2021.

Management commentary

Medibank’s Chief Executive Officer, Craig Drummond, believes that GPs are the very heart of Australia’s health system and expects this investment to support them to enhance the health and quality of life of their patients.

This is turn should help reduce high-cost hospital admissions and alleviate pressure on the health system.

Mr Drummond also notes that this transaction reflects the ongoing transformation that Medibank is undertaking.

He commented: “Medibank’s investment in Myhealth also reflects our ongoing transformation into a broader healthcare company and complements our existing partnerships with doctors across the Australian health system.”

“We will continue to work within the healthcare system to contribute to a healthier community with a focus on preventative care, which will have a positive impact on avoidable hospitalisation, and contribute to a more sustainable health system that benefits all Australians. The announcement today is a further signal of our commitment to doctor-led and patient-centred partnerships that meet these objectives,” he added.

The release stresses that patients will continue to be treated equitably, with no clinical priority given to Medibank or any other private health insurance customer.

More reading

• Top brokers name 3 ASX shares to sell next week
• This ASX sector is facing a tough 2021

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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Webcentral Group Ltd (ASX: WCG) shares opened sharply lower in morning trade, down more than 10%. Within 30 minutes, however, the Webcentral share price had regained all those losses, only to be sliding lower again at time of writing, down 2.59% to 56.5 cents.

These wild share price moves come following Webcentral’s release of its financial year 2021 first half results (H1 FY21).

What did Webcentral report?

The Webcentral share price is all over the show this morning after the company reported that revenue from its domain registrations rose early in 2020. This came as the pandemic saw more people working from home. However, Webcentral’s revenue declined in the second half of 2020. H1 FY21 revenue from domain registration was down 4.2% relative to H1 FY20.

Revenue from the company’s email services posted moderate growth (up 1.6%) and Webcentral said it expected further growth in this sector.

Meanwhile revenue from hosting services was down 17.4% compared to the first half of the 2020 financial year, falling to $7.25 million from $8.78 million.

Digital marketing revenue also fell by 33.4% over the previous corresponding half year. The company noted that this segment is a value add to its core products and it expects revenue from digital marketing will grow in line with the company’s overall success.

Webcentral’s revenue from other income decreased by 27.3% compared to the same half in 2020. The company expects revenue from other income to keep falling as it completes transitional service agreements, and brings in less revenue from its property sublease (due to shrinking property assets).

Total revenue declined by 14.7% compared to the first half of the 2020 financial year.

The company pointed to the impact of COVID-19 and poor customer experience as the cause for the drop in revenue.

It added that the business is undertaking “a number of initiatives to address these issues. Management is confident that revenue growth will return across all four core services as these short term issues are resolved.”

Looking ahead, Webcentral forecasts strong growth with the introduction of the .au domains in the second half of 2021. It expects pre-registrations to commence near the end of first half of the year and a 25% to 35% growth in new domain name registrations.

Commenting on the results, managing director Joe Demase said:

The completion of the takeover has delivered significant value to both groups of shareholders. We are now focused on our Strategic Transformation Program to improve customer experience, achieve revenue growth and simplify Webcentral’s operations.

Webcentral had been targeted for takeover by both 5G Networks Ltd (ASX: 5GN) and Keybridge Capital Limited (ASX: KBC), with the former prevailing.

Webcentral share price and company snapshot

Webcentral provides a range of website services including domain name registrations and renewals, website and email hosting, website development, search engine marketing and social advertising campaigns.

The Webcentral share price is up nearly 50% over the past 12 months and up more than 800% from its 30 March lows. In 2021, Webcentral shares are up around 28%.

By comparison the All Ordinaries Index (ASX: XAO) is up 2% so far in 2021.

More reading

• Why the 5G Networks (ASX:5GN) share price is charging higher
• New twist in 5G Networks (ASX:5GN) takeover of ASX-listed Webcentral

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 5G NETWORK FPO. 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 Veem Ltd (ASX: VEE) share price is soaring 14% in early afternoon trade.

The sharp gains come following the company’s release of its results for the first half of the 2021 financial year.

Veem is a marine technology company that produces propulsion and stabilisation systems for private, commercial and government vessels.

What results did Veem report?

In this morning’s ASX release, Veem provided an unaudited update on its expected results for the half year to 31 December 2020. It said the audited results will be released later this month.

The company reported revenues of $28.4 million for the half year. That’s up 36% from the previous corresponding period.

Earnings before income, tax, depreciation and amortisation (EBITDA) of $5.7 million were up 111% from the first half of the 2020 financial year. Veem noted that figure includes $1.5 million it received from the government’s JobKeeper program.

Net profit after tax (NPAT) posted a 233% increase from the previous corresponding period, reaching $3.0 million.

The company said its gyrostabilisers sales were particularly strong, with the $3.6 million in revenue up 73% from the previous corresponding period.

Earnings per share (EPS) of 2.3 cents were up 229%.

Commenting on the results, Mark Miocevich, Veem’s managing director said:

The continued increases in sales of VEEM Gyros with minimal increase to the overhead burden should continue to see the business generate strong EBITDA and cash flow. Across the business, and within Gyros, propulsion and defence specifically, we continue to see evidence of strong sales and profit potential for the rest of 2021.

VEEM is in the strongest position it ever has been with an existing robust core business which has allowed us to invest and support our focus on the rapid growth of our disruptive VEEM Gyro product into the global marine market. Following the signing of the framework agreement with Damen, one of the largest European shipbuilders, we are now on the cusp of delivering on what we have known for some time is a game changing opportunity.

Veem share price snapshot

Veem shares have been a star performer over the past year. The company proved highly resilient to the COVID-19 market rout, with the share price falling less than 6% from late February through to 23 March.

Over the past 12 months the Veem share price is up 79%. In 2021, shares are up a more subdued 2.4%.

By comparison the All Ordinaries Index (ASX: XAO) is flat over the past 12 months.

More reading

• Why is the Webcentral (ASX:WCG) share price on a rollercoaster today?
• Why Douugh, Janus Henderson, Northern Star, & Orocobre are dropping lower
• Westpac (ASX:WBC) share price to close gap with CBA (ASX:CBA) says Morgans
• Vonex (ASX:VN8) share price explodes 23% higher. Here’s why
• Should you buy ASX shares that are takeover targets?

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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In afternoon trade on Friday, the S&P/ASX 200 Index (ASX: XJO) is on track to record a strong gain. At the time of writing, the benchmark index is up a sizeable 0.85% to 6,822.1 points.

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

Douugh Ltd (ASX: DOU)

The Douugh share price is down 3% to 16.5 cents after returning from a six-week suspension. The financial app company’s shares were down as much as 18% at one stage before recovering to current levels. Investors appear concerned with the progress (or lack thereof) of its app and an ASX investigation into listings breaches. This morning Douugh revealed that the profit from the sales of breached shares will be donated to charity.

Janus Henderson Group CDI (ASX: JHG)

The Janus Henderson share price has fallen 4% to $40.90. Last night the fund manager released a strong fourth quarter update which revealed operating income of US$227 million. This was up 45% on the third quarter and 47.1% on the prior corresponding period. Taking the shine off this profit result was news that one of its largest shareholders is selling its entire stake.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 2% to $11.86. Investors have been selling Northern Star and other gold miners today after the spot gold price pulled back overnight. At the time of writing, the S&P/ASX All Ordinaries Gold index is down 0.7%.

Orocobre Limited (ASX: ORE)

The Orocobre share price has dropped 5% to $4.78 despite there being no news out of the lithium miner. However, earlier this week analysts at Morgans downgraded the company’s shares to a hold rating with a $5.15 price target. It made the move on valuation grounds after recent share price strength.

More reading

• ASX 200 up 0.75%: REA Group and News Corp impress, big four banks charge higher
• Why the Douugh (ASX:DOU) share price is crashing 18% lower
• Why the Janus Henderson (ASX:JHG) share price is sinking 7% today
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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.

The post Why Douugh, Janus Henderson, Northern Star, & Orocobre are dropping lower appeared first on The Motley Fool Australia.

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