Here are 6 ASX Stocks that had bad news over Christmas/New Year: And You May’ve Missed It!

6 ASX Stocks that had bad news over Christmas/New Year…and you may’ve missed it

Integrated Research (ASX:IRI)

This performance management solution stock told investors two days prior to Christmas that it did not have a good start to FY25. Investors were told that Total Contract Value would be $23-27m, down 39% from the prior corresponding period. Revenues were expected to be $25-29m lower, with the midpoint being 34% lower, while EBITDA was expected to be anything from $0.5m in the red to $2m in the green, the midpoint being 93% down from the prior corresponding period. The company assured investors the second half would be better because contracts for renewal would be stronger than the first half. Well, if the clients renew obviously…time will tell.

Next Science (ASX:NXS)

In May 2024, Next Science sued a former employee (ex VP, Wound Care Sales Michael Morello) for breaching post-employment constraints. Only yesterday (January 8), the company revealed it had been counter-sued, alleging breaches of fiduciary duties and mismanagement against several employees.

It is fair to say that Morello has made some serious allegations including that its XBIO technology was not approved by the FDA as a biofilm eradication process and the company did not address certain safety concerns. Even though the company said it would fight those allegations and the existing lawsuit against Morello, it said it would undertake an independent investigation into those matters. Wherever this legal drama goes, it is a distraction it does not need.

St Barbara (ASX:SBM)

18 months since St Barbara cashed out the last of its Australian assets to focus on PNG and Canada, PNG sent it the gold miner an A$210m tax bill. The government has alleged income tax miscalculations resulting from asset valuations from 2006 and depreciation claims from 2017 to 2021.

St Barbara has disputed these claims, asserting that the IRC has overstepped the five-year statutory limit for amended assessments by alleging fraud to justify reopening prior tax returns. But this does not bode well for investors’ confidence in PNG as an investment destination for mining companies.

Zimi (ASX:ZMM)

This company was informed by the ASX that sales of its products to distributor GSM and an associate of major shareholder Gerard Private may have been in breach of ASX Listing Rule 10.1. This requires the company to have a general of shareholders to approve agreements for the sales of assets to related parties. There are no suggestions it did not disclose those sales at all or that it has breached its contracts. But the company has chosen to suspend sales to GSM pending guidance from the ASX. Obviously this will have a material negative impact on revenue and earnings, and the company has confirmed as such.

Newfield Resources (ASX:NWF)

The ASX has public doubts that Newfield’s current condition warrants listing. Among the evidence it cited was the company’s net liability position of $12m and that it had a net loss before tax of $149m. Newfield told the ASX it was controlling costs, that it had a $15m loan facility and was looking to hire a new management team. Moreover, the company told investors it could eventually resume operations at its Sierra Leone projects once commodity prices recovered and it secured funding to do so. We think it is fair to say that the unaudited cash balance as of December 31 won’t be enough to fund exploration…it is just $553.

ChemX Materials (ASX:CMX)

ChemX Mterials has high purity alumina processing technology. 6 weeks ago, at its AGM in late November, the company declared to investors that the company was ‘poised for an exciting year‘. But CEO Peter Lee quit on December 16, director Alwyn Vorster walked out the door on New Years’ Eve and administrators were appointed on January 2. At this stage, it does not look like it will be an exciting year unless or until the company can secure new management and/or new funding. Until then, the company remains in the hands of WA Insolvency Solutions.

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