Azzet reports on three ASX stocks with notable trading updates today.
Star Entertainment defies gravity
Shares in battle-wary Star Entertainment Group (ASX: SGR) managed to move over 2% higher at the open despite announcing ballooning losses in the third quarter to $21 million, up from $8 million in the second quarter.
Today’s respite for shareholders, who have watched the share price tumble 75% in the last 12 months, may reflect growing confidence in the stock’s ability to survive, despite its debt-riddled balance sheet.
Management attributed a 9% fall in 3Q revenue to $271 million to a seasonal softening in reduced levels of gaming visitations and the one-off impact of adverse weather events in Queensland.
Despite management reiterating previous warnings of “material uncertainty over the group's ability to continue as a going concern”, true believers in the stock may be pitting their fortunes on a Bally’s Corporation buyout by the end of the financial year.
By the end of June Star was progressing both the exit of its equity interest in the Queen's Wharf Brisbane project and the implementation of a $300 million strategic investment by Bally's, which remains subject to shareholder approval.
Meanwhile, as at 31 March, Star held $44 million in available cash, compared to $78 million three months earlier.
Star’s market cap is $308 million; the share price is down 43% year to date.
Multiple indicators confirm that the stock is in a long-term bearish trend.
Consensus is Moderate Sell.
Pexa Group rallies along with rate cut expectations
Shares in Pexa Group (ASX: PXA) were up around 5.5% at the open after the property software company announced that the UK’s Financial Conduct Authority (“FCA”) had approved the application of Digital Completion UK Ltd, trading as PEXA, to become an Authorised Payment Institution (“API”).
However, the bigger kicker to today’s share price upside can come from revelations that the stock is likely to be a primary beneficiary of falling interest rates, which the Reserve Bank (RBA) is expected to lower again next month.
Pexa, which processes around 90% of all property transactions and settlements in Australia is expected to be a key beneficiary of lower interest rates which could drive business activity higher.
Late March Pexa appointed Russell Cohen as its new group managing director and CEO.
During the half year, it reported revenue and operating earnings growth of 25% and 24% respectively.
The group also reaffirmed its previously announced FY25 guidance.
Pexa’s market cap is $2.1 billion putting it just inside the ASX200. The share price is down 2% over one year and down 8% year-to-date.
The weak trend in the 200-day moving average shows that sellers have been more aggressive than buyers for quite some time.
Consensus is Moderate Buy.
Champion Iron slips after posting record 4Q
Shares in Champion Iron (ASX: CIA) were down around 2% at the open despite the ASX200 iron reporting a record quarter for sales in the three months to March, up 18% year-on-year to 3.5 million dry metric tonnes.
However, quarterly production of 3.2 million wmt (3.1 million dmt) of high-grade 66.5% Fe concentrate for the three-month period ended 31 March was down 13% from the previous quarter, and down 3% over the same period last year.
Lower production volumes were attributed to the scheduled semi-annual shutdowns of both concentration plants.
Due to the reduction in iron ore concentrate stockpiled at Bloom Lake, the cash balance as at 31 March totalled $117.5 million, up $24.4 million from 31 December, 2024.
Record material mined and hauled at Bloom Lake totalling 20.4 million tonnes for the three-months was up 2% from the previous quarter and up 27% on last year.
Looking forward, the company remains focused on deploying work programs tailored to optimise operations and reliably produce at Bloom Lake's nameplate capacity.
Meanwhile, Champion continues to analyse opportunities to structurally increase Bloom Lake's nameplate capacity beyond 15 Mtpa over time.
Champion Iron has a market cap of $2.1 billion; The share price is down 2% over one year and down 8% year to date.
The stock’s shares appear to be in a long-term bearish trend confirmed by multiple indicators.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
