It’s ASX holidays (unofficially), but these 3 ASX stocks did not get away with releasing poor news
Nick Sundich, December 23, 2022
With fewer investors watching the markets, some ASX companies try to exploit the opportunity to slip bad news past investors during ASX holidays.
OK, it isn’t the ASX holidays just yet – the market is open today – but these companies are trying to get away with it.
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Earlypay withdraws guidance
Less than three weeks ago, debt collector Earlypay (ASX:EPY) told shareholders a major creditor (RevRoof) had gone into administration. At the time, it told investors there would be no impact on its guidance, arguing the assets were secured by inventories.
This morning, the company told shareholders uncertainty had arisen around RevRoof’s security position and it was consequently withdrawing its FY23 guidance. Shares crashed by more than a third this morning.
Earlypay (ASX:EPY) share price chart (Graph: TradingView)
These companies also tried to slip bad news past investors
National Tyre and Wheel (ASX:NTD) had good news and bad news for shareholders. The good news was that revenue for 1HY23 is improving from 1HY22 – from $251m to $290-$300m.
The bad news was that margins were impacted by substantial cost increases. As a result, EBITDA would be down from $20m to $13-$14m, with NPAT down from $8m to $1-$2m. Ouch!
Another is Vital Metals (ASX:VML), a company that is trying to get a Canadian rare earths project off the ground. It told shareholders it had decided to defer the completion of the leaching, purification and precipitation circuits of its processing facility until 2024, in order to preserve cash reserves. The shares are down 9% this morning after an already lousy 8-month decline this year!
Investors need to keep watching the market even during ASX holidays
The bottom line here is that investors need to pay attention to their companies, even though the rest of the market may be on vacation. The official ASX holidays are only weekends and public holidays, the bourse will be open Wednesday to Friday next week (December 28-December 30), then re-open for 2023 on Tuesday January 3.
We expect there’ll be more companies trying to slip bad news past investors during the ASX holidays.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
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