The Motley Fool

Automotive Holdings Group Ltd shares plummet on trading update

A trading update out of diversified automotive retail and logistics group Automotive Holdings Group Ltd (ASX: AHG) signals continued headwinds in a “challenging” automotive retail segment as the company battles regulatory changes affecting finance and insurance – and investors have reacted in kind.

AHG has forecast a full year operating NPAT of around $75 million, with the sale of its refrigerated logistics division affecting trading and Western Australian private buyer recovery slower than expected.

Shares in AHG were down almost 11% to $3.04 at the time of writing.

AHG managing director John McConnell said an uplift in margins is expected for the second-half from franchised dealerships and used car businesses that have been below expectations of late while the company’s truck division remains strong with management focused on cost control and revenue growth.

Elsewhere in the automotive space shares in four-wheel drive accessory company ARB Corporation Limited (ASX: ARB) are up 0.3% to $21.44 at the time of writing after a market update this month revealed the company was well-positioned to continue growth despite “severe instability” in the sector.

Shares in related stocks Autosports Group Ltd (ASX: ASG) and Caltex Australia Limited (ASX: CTX) held strong today at $1.79 and $30.86 respectively.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Limited and Automotive Holdings Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here’s the best part: we think there’s one ASX stock that’s uniquely positioned to profit immensely from this explosive new industry… taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more