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

Cardno Ltd (ASX: CDD)

The Cardno share price is down 46% to 33 cents. This has been driven by the professional infrastructure and environmental services company's shares going ex-dividend this morning. Last week, the company announced plans to distribute an unfranked dividend of 27.6 cents per share to shareholders. This equates to a total return of $10.8 million. This reflects the repatriation of US$5.9 million of collections related to three positive legal claims and $1.5 million from the sale of Cardno International Development to DT Global Australia. This dividend will be paid to eligible shareholders later this month on 29 April.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down 2.5% to 88.7 cents. This is despite there being no news from the allogeneic cellular medicines developer. However, it is worth noting that its shares have been on fire in recent weeks, so profit-taking could be happening today. For example, Mesoblast's shares remain up approximately 175% since this time last month. This has been driven by excitement over recent correspondence from the US Food and Drug Administration. Investors appear optimistic that one of the company's stem cell therapies could be approved at long last in the near future.

Perseus Mining Ltd (ASX: PRU)

The Perseus Mining share price is down 2.5% to $2.27. This morning, the gold miner announced that its takeover offer for Orecorp Ltd (ASX: ORR) has been given a boost. Perseus revealed that Silvercorp Metals has accepted the company's offer. This is a big win as Silvercorp's holding represents 15.61% of OreCorp shares on issue. This means that Perseus now has a relevant interest of 74.98% of OreCorp shares on issue. However, it seems that investors don't appear overly keen on the proposed takeover.

Somnomed Ltd (ASX: SOM)

The Somnomed share price is down 47% to 20.5 cents. Investors have been hitting the sell button in response to an earnings downgrade and capital raising. Somnomed downgraded its revenue guidance to 6%-9% growth and EBITDA guidance to negative $1 million to $0 million. This compares to previous revenue guidance of 12%+ and EBITDA guidance of $3 million+ for FY 2024. Management blamed manufacturing constraints and delayed implementation of cost initiatives. It also raised approximately $5.8 million at a deep discount of 21 cents per new share.

The post Why Cardno, Mesoblast, Perseus, and Somnomed shares are dropping today appeared first on The Motley Fool Australia.

At the time of writing, the ASX share is trading more than 37% higher on the day at 89.5 cents apiece, bringing its gains from last Thursday's close to more than 110%.

What's driving this ASX share higher?

On 30 June, the company completed the sale of Cardno International Development to DT Global Australia Pty Ltd.

It confirmed the first tranche of the distribution was paid on 14 July to Cardno shareholders. This comprised of a capital return of $9.4 million or 24 cents per share and an unfranked dividend of 78 cents per share.

The company then announced last week that the second tranche of the distribution is expected to be paid in two parts – first on 22 August, with the balance of this settled by September 2022.

It now has to figure out what the next steps will be after finalising the remaining distribution payments from the Cardno International Development sale.

Noteworthy, however, is that the company is set to wind down its wholly-owned subsidiary, Sustentable, formerly known as Caminosca.

This business [Sustentable] is involved in a number of court actions that may lead to between US$0 and US$15 million of recoveries and has between US$0 and US$200 million of contingent liabilities depending on the outcome of various legal actions.

The Cardno Board has received advice that it is unlikely that these contingent liabilities will affect the listed Cardno holding company, but that they may affect the potential for future recoveries from this wind down business. There remain costs associated with these legal actions.

Further updates are expected in the coming weeks to months per the language in the report.

In the meantime, the Cardno share price is down 91% in the past 12 months.

The post Guess which little-known ASX share has soared 110% in 2 days appeared first on The Motley Fool Australia.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 3.5% to $91.49. This follows another decline in the Square share price overnight, which impacts the value of its takeover approach. In related news, this morning shareholders voted in favour of the Square takeover. This means the deal now only requires approval from the Bank of Spain.

Cardno Limited (ASX: CDD)

The Cardno share price is down a massive 87.5% to 20.5 cents. This morning the infrastructure and environmental services company's shares traded ex return of capital. Eligible shareholders can now look forward to receiving a return of $582 million or $1.49 per share. This comprises a capital return of $360 million or $0.92 per share and an unfranked dividend of $222 million or $0.57 per share.

Mesoblast Limited (ASX: MSB)

The Mesoblast share price has tumbled 16.5% to $1.42. Investors have been selling the allogeneic cellular medicines developer's shares after Novartis terminated an agreement that could have been worth ~US$1.2 billion. The two parties were looking at Mesoblasts' remestemcel-L as a treatment for acute respiratory distress syndrome (ARDS) due to COVID-19. However, Novartis bailed after some abject trial results.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is down 7.5% to $37.59. This morning the retail conglomerate released an update on its performance during the first half of FY 2022. As you might have guessed from the share price reaction, that update wasn't an overly positive one. Due largely to COVID costs, Woolworths' Australian Food EBIT is expected to be $1,190 million to $1,220 million during the first half. This is down from $1,329 million a year earlier. In addition, the BIG W business is expected to post a big reduction in first half earnings.

The post Why Afterpay, Cardno, Mesoblast, and Woolworths shares are falling appeared first on The Motley Fool Australia.

At the time of writing, the infrastructure and environmental services company's shares are down 87% to 22 cents.

Is the Cardno share price really down 87% today?

The Cardno share price is in fact down a massive 87% on Tuesday afternoon.

However, this isn't necessarily a bad thing for shareholders. The reason for the decline is that Cardno shares are trading ex return of capital today.

Earlier this month, Cardno completed the sale of its Americas Consulting Division and Asia Pacific Consulting Division to Stantec Inc for a total aggregate cash consideration of US$500 million (A$667 million).

Following the sale, the company revealed that it would distribute the vast amount of the proceeds to shareholders. A total of A$582 million or A$1.49 per share will be returned, comprising a capital return of A$360 million or A$0.92 per share and an unfranked dividend of A$222 million or A$0.57 per share.

As the Cardno share price is now trading without the rights to these capital returns and new buyers won't be entitled to them, it has dropped to reflect this. After all, why would you pay yesterday's share price of $1.63 if you were not going to receive this return?

What next?

Eligible shareholders can now look forward to receiving these payments next week on 22 December, just in time for some last minute Christmas shopping.

As for the company, the sale of the Americas Consulting Division and Asia Pacific Consulting Division to Stantec means that Cardno is left with just its International Development Business and Latin American group companies.

Though, that could yet change. Last month Cardno appointed Greenhill & Co as its financial adviser and Gilbert + Tobin as its legal adviser in relation to the strategic review of the International Development Business. This will include an assessment of acquisition, merger or sale options with a view to enhancing value for Cardno shareholders.

The post Is the Cardno (ASX:CDD) share price really plummeting 87% today? appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are storming higher:

Cardno Limited (ASX: CDD)

The Cardno share price is up 3.5% to $1.62. This morning the company announced the strategic review of its International Development Business. This will include an assessment of acquisition, merger or sale options with a view to enhancing value for Cardno shareholders. Cardno also notes that it has received a number of unsolicited approaches in relation to the business in recent weeks.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is up 5% to $3.28. This follows the release of the agricultural chemicals company's full year results this morning. Incitec Pivot reported a 10% lift in revenue to $4,348.5 million and 91% jump in net profit after tax (NPAT) excluding individually material items to $209 million. The Fertilisers APAC business drove the strong result. It benefited from a commodity price upswing and strong ammonium phosphates production.

Mesoblast limited (ASX: MSB)

The Mesoblast share price has jumped 12% to $1.91. Investors have been buying the allogeneic cellular medicines developer's shares after it released positive data from a phase three trial. That trial was studying rexlemestrocel-L in 565 patients with New York Heart Association class II and class III chronic heart failure with reduced ejection fraction. The data revealed some very promising results which has got investors excited.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is up 2.5% to $56.02. This is despite there being no news out of the logistics solutions company today. However, a number of tech shares are pushing higher today following a strong night of trade for the Nasdaq index on Friday. The S&P/ASX All Technology Index is up 1.1% at the time of writing.

The post Why Cardno, Incitec Pivot, Mesoblast, and WiseTech are storming higher appeared first on The Motley Fool Australia.

Four ASX shares climbing more than most today are listed below. Here's why they are storming higher:

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is up 5.5% to $4.94. This morning the broadband provider confirmed that it is in talks to acquire Over the Wire Holdings Ltd (ASX: OTW). However, it also warned that takeover talks are preliminary and incomplete, and no agreement has been reached. Over the Wire offers data networks, voice services, internet connectivity, and technological support.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 7% to 61.5 cents. This appears to have been driven by an announcement that reveals that its offtake agreement with Ganfeng Lithium is now unconditional following receipt of Chinese regulatory approvals. The agreement will see the Chinese lithium giant take 75ktpa of spodumene concentrate for a period of four years.

Cardno Limited (ASX: CDD)

The Cardno share price has jumped 17% to $1.52. Last night the infrastructure and services company announced an agreement with US-based Stantec. That agreement will see Cardno sell its Americas consulting division and its Asia Pacific consulting division to Stantec for a total of US$500 million (~A$667 million). Cardno intends to distribute between A$567 million to A$600 million of the proceeds to shareholders.

Nuix Ltd (ASX: NXL)

The Nuix share price is up 3% to $3.06. This morning the investigative analytics and intelligence software provider announced the appointment of Jonathan Rubinsztein as its new CEO and Executive Director. This follows Mr Rubinsztein's recently announced resignation from auto parts software company Infomedia Limited (ASX: IFM).

The post Why Aussie Broadband, Core Lithium, Cardno, and Nuix are storming higher appeared first on The Motley Fool Australia.

At the time of writing, shares in the infrastructure and services company are exchanging hands for $1.525, up 17.8%. However, the company's shares had opened at an intraday high of $1.60.

Let's take a look at the deal that has catapulted the Cardno share price today.

Pocketing $500 million in division sales

In a release made well after the market close last night, Cardno revealed the details of an agreement with the much larger services company, Stantec. In early trade, investors are bidding up the Cardno share price in response.

According to the release, Cardno has entered into share sale agreements to sell its Americas consulting division and its Asia Pacific consulting division to Stantec. The agreed-upon consideration for the two consulting divisions is US$500 million, or roughly A$667 million.

To the delight of shareholders, the company intends on distributing between A$567 million to $600 million of the proceeds to Cardno shareholders. This would equate to somewhere between $1.40 to $1.49 per share, depending on the decision. The distribution will be comprised of a mix of capital return and an unfranked dividend.

Additionally, Cardno plans to retain approximately A$64 million of cash from the division sales. The capital will be used to support the remaining International Development and South American operations. Pleasingly, Cardno will have a clean balance sheet following the transaction, holding no debt. This is likely another contributing factor to the positive Cardno share price move today.

Furthermore, the deal had been struck following the company's extensive global strategic review. This undertaking was announced to the ASX on 9 June 2021. Reportedly, a notable number of international groups opened Cardno's books and took a squizz.

From here, the transaction remains conditional on a handful of details. For example, the deal will need approval from shareholders at Cardno's upcoming extraordinary general meeting. This meeting is expected to be held on 6 December 2021.

In the meantime, the Cardno board unanimously recommends shareholders vote in favour of the transaction.

Management commentary

Commenting on the transactions, Cardno CEO Susan Reisbord stated:

I am excited about the opportunity for Cardno's Asia Pacific and Americas Consulting Divisions to become part of Stantec, a top tier consulting firm that is recognized for creative technology-forward thinking and collaboration. This is not simply a great culture fit for our Cardno Asia Pacific and Americas Consulting Division teams, this merger provides new career opportunities for staff, additional resources and services for our clients, and a new platform for combined growth in the marketplace.

Likewise, Stantec CEO Gord Johnson highlighted the companies cultural compatibility. Specifically, both the services and geographies are highly complementary.

Cardno share price snapshot

The Cardno share price has been an exceptional performer over the last year. In fact, it is likely up there with some of the best performers on the ASX over the 12 month time period. While the S&P/ASX 200 Index (ASX: XJO) has delivered a return of 20% in the last year, Cardno has soared 346%.

At the current share price, Cardno is trading on a trailing price-to-earnings (P/E) ratio of 16.4 times.

The post Cardno (ASX:CDD) share price rockets 20% on $500 million deal appeared first on The Motley Fool Australia.

1. Don't take large bets.

2. Research well at the outset

3. Invest time in learning about value proposition

4. Diversify your crypto portfolio

5. Don't get swayed by emotions

6. Don't ignore other expenses

Be prepared for the risk and volatility.

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

The post Six things investors need to know before investing in cryptocurrencies appeared first on The Motley Fool Australia.

At the time of writing, the Intega share price is trading hands at 51.5 cents, up 12%.

What's lifting the Intega share price?

Intega Group is an engineering services provider offering environmental testing, geotechnical engineering, quality assurance, etc.

Investors are buying up Intega's shares today after the company announced it has commenced a strategic review.

The decision follows increased activity and interest in the sector. Intega's chairman, Neville Buch said:

"Intega is performing well, and the business is ideally positioned to benefit from the strong pipeline of infrastructure investment in the US and Australia. The business has significant organic and inorganic growth potential, particularly in our core US markets as well as adjacencies. The board however believes that the business is undervalued by recent prices at which Intega shares have traded on the ASX…"

Additionally, the review's objective is to evaluate options for maximising shareholder value – including exploring ownership options for Intega.

The company's largest shareholder, Crescent Capital Partners, has supported the decision. Greenhill & Co have been engaged for financial advisory. While Intega has also gone with Gilbert + Tobin for its legal advisory.

Taking a card from Cardno

That interest in the sector that Intega is referring to might be relating to Cardno Limited(ASX: CDD). With a market capitalisation of $340 million, Cardno is the bigger engineering company, which previously owned Intega.

Cardno also announced this morning that it would be conducting a strategic review after receiving numerous approaches from interested parties.

While the Intega share price is rising, the company noted there is no certainty of any particular outcome or transaction.

The post Intega Group (ASX:ITG) share price jumps 13% on latest update appeared first on The Motley Fool Australia.

At the time of writing, the Cardno share price is trading at 95 cents, up 31%

What's going on with the Cardno share price?

Cardno is a global engineering company operating across infrastructure, environmental, and social developments.

The engineering consulting company has commenced a strategic review process following a number of unsolicited approaches from interested parties. This process will seek to determine how to maximise shareholder value, given the recent outsider interest.

According to the release, there are no assurances that Cardno will pursue any transactions from the review.

Furthermore, the company has appointed Baird and Gresham Advisory Partners as its financial advisors. Meanwhile, Gilbert + Tobin will operate as Cardno's legal advisor during the strategic review.

The outsider interest might indicate the market has been underpricing the Cardno share price.

Intega-resting news

It looks like Intega Group Ltd (ASX: ITG) is jumping on the strategic review bandwagon. Intega is another engineering services company that was demerged from Cardno in late 2019.

In an announcement of its own, the company advised it has also commenced a strategic review following increased activity and interest in the sector. Intega's chairman, Neville Buch said:

Intega is performing well, and the business is ideally positioned to benefit from the strong pipeline of infrastructure investment in the US and Australia. The business has significant organic and inorganic growth potential, particularly in our core US markets as well as adjacencies. The board however believes that the business is undervalued by recent prices at which Intega shares have traded on the ASX…

Greenhill & Co have been engaged for financial advisory. While Intega has also gone with Gilbert + Tobin for its legal advisory.

Much like the Cardno share price, Intega shares are trading higher on the news. At the time of writing, the Intega share price is up 8.7% to 50 cents a share.

The post Cardno (ASX:CDD) share price skyrockets 30% on strategic review appeared first on The Motley Fool Australia.

How has Cardno performed for FY20?

Earlier today, Cardno released its results for FY20.

The company's report was headlined by an 11.1% surge in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the full year of $43 million. The result marked the 4th consecutive year in which Cardno has hit or exceeded market guidance. Cardno's result was fuelled by cash flow from operations of $43.5 million for the full year. In addition, the company reported a 4.4% increase in gross revenue of $978.3 million.

Cardno's management noted that the company has been able to continue to deliver it services despite the COVID-19 pandemic. Fee revenue for the full year increased 11% to $677 million, with the Americas being Cardno's strongest region. However, Cardno saw fee revenue down 4% in the Asia Pacific region with the company citing a longer than normal reset.

The company attributed its performance to its speciality offerings in health sciences, natural resources and asset management. Cardno highlighted that the company has zero net debt, however did not declare a final dividend for FY20.

What is the outlook for Cardno?

Cardno is a professional infrastructure and environmental services consultancy company. Despite reporting results that are both up on last year and ahead of market guidance, the Cardno share price has tanked more than 11% in early trade. The sell-off follows the company's softer outlook for FY21.

According to Cardno's management, the company's operations will undoubtedly be impacted by the COVID-19 pandemic. As a result, the company provided conservative guidance for its outlook. For FY21, Cardno anticipates EBITDA to be in the range of $40 million to $45 million.

Operations in the Americas will continue to remain in focus, as the company looks to maintain momentum during the pandemic. Cardno noted that its Asia Pacific business is in the first year of a 2-year rebuilding plan, with the company focusing on lifting margins in FY21.

Foolish takeaway

At the time of writing the Cardno share price is down more than 11.5% and is currently trading near its intra-day low of 29 cents. The Cardno share price has struggled in 2020 and is down more than 36% for the year.

The post Cardno shares tank 11% despite beating guidance appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they have started the week in the red:

The Ansell Limited (ASX: ANN) share price is down 8.5% to $25.42 after the health and safety products company released its full-year results. The market appears to have been disappointed by Ansell's 11.2% decline in earnings before interest and tax from continuing operations. The company also warned of increasing input costs and the potential negative impact of the trade war between the U.S. and China.

The Beach Energy Ltd (ASX: BPT) share price has tumbled 5% to $1.77 after the energy company's full-year results fell a touch short of expectations. Thanks to the Lattice Energy acquisition and rising oil prices, Beach Energy delivered an underlying net profit after tax of $302 million, up 86% on the prior corresponding year. The market had anticipated an underlying profit after tax of $307 million.

The Cardno Limited (ASX: CDD) share price is down 14% to $1.20 after posting a loss of $14 million in FY 2018. Management advised that the net loss after tax of $14 million included a $32.8 million charge to reduce tax assets associated with the change in US federal corporate income tax rate from 35% to 21%. EBITDA from continuing operations came in at $56.2 million, up 28% from $44 million in FY 2017. Unfortunately, this growth is unlikely to be sustained in FY 2019. Due to a number of investments management expects limited EBITDA growth in some divisions in the short term.

The Silver Chef Limited (ASX: SIV) share price has tumbled 14% to $2.46 after releasing its unaudited preliminary full-year results. The equipment financing company expects to post a statutory FY 2018 net loss after tax of around $48 million. The loss is largely attributable to the company's exit of the GoGetta business. This is expected to mean the company breaches its debt covenants, however it stressed that it enjoys the support of its lenders and expects appropriate waivers to be granted.

The post Why these 4 ASX shares started the week in the red appeared first on The Motley Fool Australia.

According to the company's announcement, this was due to his failure to follow lawful directions of the board on the Snowy Mountain Engineering Corporation (SMEC) issue. The SMEC is being investigated by the federal police over allegations of financial crimes.

The revolving door at Cardno continues to turn as this is now the seventh CEO that the company has had in less than 5 years.

With that in mind, I wouldn't invest in Cardno right now. The role of a visionary, capable and stable management team cannot be understated. Consider the role Alan Joyce has played in turning around Qantas Airways Limited (ASX: QAN) or the role Nicholas Moore has played at Macquarie Group Ltd (ASX: MQG).

Instead of Cardno, I'd rather put my money in these three revolutionary Aussie companies.

The post Why the Cardno Limited CEO just got shown the door appeared first on The Motley Fool Australia.

The stock jumped 1.8% higher to $1.40 in afternoon trade after surging nearly 12% on Monday after management posted a 30% uplift in first half earnings before interest, tax, depreciation and amortisation (EBITDA) to $30.3 million.

However, gross revenue dipped to $543.4 million in the six months to end December 2017 compared with the $575.7 million Cardno posted in 1HFY17.

The market isn't concerned about the top-line though, not when margins are expanding as quickly as that. Cardno's cost cutting program is working like a charm and there are reasons to think that revenue growth will soon follow given Cardno's exposure to strong growth sectors.

Infrastructure spending is booming in Australia and the US (where Cardno has a significant market presence) and the consultancy is likely to pick up more work in the latter market as US economic growth is expected to accelerate this year and next.

Unfortunately, its US operations aren't firing on all cylinders as management admits there is a lot more work to do to get it into prime condition as the margin on its Americas business sits at around 3.6% when Asia Pacific is at 9%.

But the glass is certainly half full with Cardno's interim EBITDA coming in at 6% above Deutsche's forecast and with management reporting a 7% increase to its backlog of work that is worth $813 million.

"CDD is well positioned to take advantage of improving Australia and US economic conditions, with its exposure to infrastructure, O&G [oil & gas] and construction providing a strong cyclical tailwind," said Deutsche who has a $1.80 price target on the stock.

"FCF [free cash flow] generation is strong and the BS [balance sheet] is net cash, providing scope for acquisitions. Management has delivered a very well executed turnaround and we see upside risks to earnings over the next 1-3 years."

Cardno is on track to deliver a large 70% plus uplift to its full year earnings per share and is likely to post 20% plus growth in both FY19 and FY20.

The stock looks inexpensive in light of its growth profile as it is trading on a FY19 price-earnings of around 15 times.

Cardno still has quite a bit of room to play catch-up even with the latest share price surge. The stock is up around 21% over the past 12-months but that is nothing compared to other companies that provide services to the infrastructure and resources sectors.

For instance, shares in Emeco Holdings Limited (ASX: EHL) and NRW Holdings Limited (ASX: NWH) have gained 254% and 115%, respectively, while Worleyparsons Limited (ASX: WOR) has jumped 65% over the same period.

There is another group of stocks that is riding on a boom. The experts at the Motley Fool are particularly bullish about the prospects for this handful of stocks.

Click on the free link below to find out what these stocks are and why you too should be excited about their outlook.

The post Deutsche Bank: This small cap is a buy and has room to move higher appeared first on The Motley Fool Australia.

It was an unlisted managed fund until December last year when it converted itself to a listed investment trust where it's now known as FORAGER AU UNITS (ASX: FOR).

Forager's Australian Shares Fund's top 5 investments to 30 June 2017 were Macmahon Holdings Limited (ASX: MAH), Reckon Limited (ASX: RKN), NZME LTD FPO NZX (ASX: NZM), Cardno Limited (ASX: CDD), and Enero Group Ltd (ASX: EGG).

Their willingness to depart from the index and focus on special situations sets them apart from many of their competitors in my opinion.

But funny things can happen when a managed fund closes and lists itself on the ASX.

The value of a fund at any point is now set by the on-market buyers and sellers of its securities, and the fund's day-to-day value is less influenced by the pre-tax Net Asset Value (NAV) of its underlying investments.

In Forager's case, there's clearly an emotive reaction to Forager's excellent past performance and investors are bidding the price of the Forager Australian Share Fund up well above its underlying value.

This is happening because of two things:  there are a lot of satisfied existing investors — my wife included — who don't want to sell, and there are new investors wanting a piece of the action.

The result is that Forager's listed Australian Shares trust is now trading at $2.11 per unit, well above its most recent pre-tax NAV of $1.75.

That's a 20% premium!

Investors buying these units at well above its pre-tax NAV have been warned though.

Forager's Chief Investment Officer, Steve Johnson, has tempered expectations by advising to not extrapolate its recent history of 25%+ returns that it achieved over the last 12 months.

Which is why I think the current listed unit price is a little silly.

There are other listed investment funds [listed companies or LICs in this case] out there too with a similar problem, including the ones below:

Foolish takeaway

If you're going to invest in a listed investment company or trust, I think you'd be better off by buying at or less than its pre-tax NAV which will give you a margin of safety.

Paying too much can leave you exposed to a nasty capital loss, a) because of the fall in the underlying investment, and b) because of the possibility of unitholders in the respective listed investment funds bailing out.

Given the choppiness of share markets in the short-term, it wouldn't take much to see a material decline in the underlying value of funds under management.

But of course, you shouldn't just look for 'cheap'. You also need to look for a manager that has an investment strategy that aligns with your personal investment philosophy, and doesn't charge an exorbitant amount in fees.

Alternatively, you can further research company share ideas yourself.

As a starting point, I can't recommend strongly enough the 11 simple lessons that are contained in the report below which I believe will give you some useful insights into managing your own money.

The post Are these listed investment companies safe in a share market crash? appeared first on The Motley Fool Australia.

These five companies all went against the trend, posting strong gains…

Stanmore Coal Limited (ASX: SMR) share price gained 18.2% to $0.71.5, and is now up nearly 400% since the start of the year. The company bought the Isaac Plains metallurgical coal mine for just $1 in July last year from Vale and Sumitomo Corp as coal prices slumped to near decade-lows of around US$70 a tonne. One year on and the spot coal price is now above US$200 a tonne and Stanmore may have got the bargain of the century. Overnight, the coal price rose again, hitting US$218.10 a tonne according to Steel Index.

OBJ Limited (ASX: OBJ) share price gained 8.5% to 7.7 cents, after the company announced that it had been granted two new US patents for its magnetic microarray technology used in skincare and oral healthcare. The company is a small biotech focusing on providing transdermal and intra-dermal drug delivery as well as therapeutic and dermatological skincare, and you can find more details here.

Karoon Gas Australia Limited (ASX: KAR) share price gained 7.5% to $1.795, after publishing an operations review yesterday. The oil and gas explorer saw its share price zoom higher last week after it announced that the company was buying a stake in two oil projects, including one that is producing 45,000 barrels of oil a day. It seems investors are still highly optimistic about the deal – even though the company hasn't said how much it is paying for the stakes.

Money3 Corporation Limited (ASX: MNY) share price gained 7.4% to $1.805, after broker Bell Potter initiated coverage on the company with a Buy rating and a 12-month price target of $2.40. The broker thinks there are several reasons why the shares are worth much more than the current price – including trading on a P/E ratio of just 10x its FY2017 earnings and strong earnings per share growth last year, and also ahead in the next few years.

Cardno Limited (ASX: CDD) share price gained 7.7% to $1.12. Over the past week, the share price has surged over 20%, despite no news from the company. Some investors could be punting on Cardno receiving another takeover offer, after all, Bradken Limited (ASX: BKN) received its fifth and most likely final takeover offer earlier this month. Cardno offers infrastructure and environmental services but has struggled as the resources boom slowly dies. Last year the company received a proportional takeover valued at $3.15 per share – current shareholders may well be crying.

The post 5 shares soaring on the ASX today appeared first on The Motley Fool Australia.

While it is capable of generating huge returns for investors over time, the market is also known for its volatile – and even gut-wrenching – performances, which can unnerve even the most experienced investors, from time to time.

Peter Lynch famously said, "In this business, if you're good, you're right six times out of ten." While we're all prone to a losing investment every now and then, some can be far more painful than others.

Consider these 10 shares, which have all collapsed in price since the beginning of the year:

Data provided by S&P Global Market Intelligence

Topping the list is 1-Page Ltd, a company that is striving to revolutionise the way in which companies hire and promote new talent.

It's a solid concept and the company's customer base is made up of some of the world's biggest companies, but the group still has very low revenue and cash flows from operations. Although it does have plenty of cash on the balance sheet, investors are becoming impatient and may be starting to doubt the company's prospects (I sold my shares recently, although I do intend to keep an eye on the business in case of improvements).

Surfstitch Group has also been an incredibly disappointing investment for shareholders, plagued by several earnings downgrades and the loss of its CEO and, more recently, its chairman as well.

Other big-name businesses that many investors will have been hurt by include Virgin Australia and Slater & Gordon, together with 3P Learning.

Indeed, there are some names on this list that investors could easily have avoided. I myself owned a small parcel of 1-Page shares as a speculative bet, although hindsight tells me I should have at least waited for more positive revenue generation from the business before pulling the trigger.

Other bets, including 3P Learning, would have been more difficult to avoid. The company was showing some nice growth figures, although that quickly changed following an earnings downgrade and the shock resignation of its CEO.

There are a few lessons to take away from this list of non-performers. Firstly, it is imperative that you diversify your portfolio. If a company makes up, say, 1% or 2% of your entire portfolio (as 1-Page did with me), a hefty loss on that one stock won't cause too much damage to your overall wealth, compared to a situation in which an individual holding made up 40% or 50% of your wealth.

It's also important to do your own due diligence on all companies you're interested in owning, and ensure you're aware of both the risks and the opportunities. If you're not comfortable with the risks, it may be worth looking elsewhere to park your funds.

The post These are the 10 worst-performing shares on the ASX in 2016 appeared first on The Motley Fool Australia.

But there are some warnings investors need to heed. Not all dividends are equal. There are some disadvantages buying companies that pay out most or all of their earnings as income.

And finally, there are some surprising advantages to investing in dividend-paying stocks.

Dividend stocks may not grow as fast as others

If a company is paying out most or all of its earnings as dividends, then theoretically, it means the company has less retained earnings to put back into growing the business. Smaller companies that are growing fast need every available dollar they can get their hands on to sustain that growth. Paying out a dividend makes little sense in that case.

Larger, more mature companies may also pay out more in dividends because management struggle to reinvest that cash at decent rates of return.

Take Telstra Corporation Ltd (ASX: TLS) as an example. The company pays out virtually all of its earnings as dividends because it struggles to generate growth in revenues of more than 5% each year. That's mostly because of its dominant position in Australia and as a mature business.

Dividend stocks may be more stable and reliable

Paying out regular, consistent dividends means companies can establish a price floor underneath their share price. Once the share price sinks to a certain level, bargain hunters and income investors start swooping on the stock, pushing the share price back up again.

High growth companies that don't pay out much in the way of dividends could see their share prices fall further if they struggle to maintain growth rates the market has come to expect. Without that growth and with little or no dividend, investors start worrying where the investment gains will come from.

Dividend stocks can boost your portfolio by more than you might expect

If you thought dividend stocks would slow the capital gains in your portfolio then you might want to think again. According to Ned Davis Research in the US, from 1972 to 2016, dividend stocks averaged an annual gain of 8.8% versus just 2.2% for the non-payers.

And as we've often argued, companies that pay out dividends tend to have greater capital discipline than those that don't and have been proven by many studies to outperform over the long term.

Dividend stocks need to be chosen carefully

Investors can't just go out and pick the companies with the highest trailing dividend yields (dividend divided by price). For one, there's a very good chance they are unlikely to be able to pay out the same dividend amount in the year ahead.

Among some of the highest yielding companies on the ASX are companies in the mining services sector. Monadelphous Group Limited (ASX: MND), Cardno Limited (ASX: CDD) and Decmil Group Limited (ASX: DCG) all have yields over 10%. But that figure is based on last year's dividend which they are unlikely to be able to meet this year. Their revenues and earnings have been falling consistently and will likely fall again this year.

Investors also need to pay attention to payout ratios and whether the dividend is franked or not. Franked dividends can generate a higher after-tax return.

Foolish takeaway

Don't be put off from buying dividend stocks by those last few comments. Every portfolio should have a decent allocation towards dividend paying companies – but just be aware of some of the pitfalls.

The post Why you need to read this before you buy dividend stocks appeared first on The Motley Fool Australia.

Acting as a drag on the index have been four shares in particular. These four shares are the worst performers on the index during the period, posting declines ranging from 18% to 38%. But could a turnaround of fortunes be in sight for any of them?

Cardno Limited (ASX: CDD)

Leading infrastructure and environmental services provider Cardno has been the worst performer on the S&P/ASX 200 during the period with a 38% drop in its share price. The decline was partly a result of a market update which revealed a significant drop in earnings guidance for the year. It lowered its EBITDA guidance by $15 million to between $40 million and $45 million. It is trying to raise $92.5 million at 40 cents per share in a capital raising. A significant discount to the current share price. The process is ongoing and I don't believe there is a turnaround in sight at present.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre shares are down 18% in the last 30 days and have yet to rebound following its full year profit downgrade a couple of weeks ago. Flight Centre's management advised that it now expects to deliver a 2% to 5% drop in full year profit. It has placed the blame on soft demand caused by the Australian election, the Brexit vote, and the Zika virus. Personally, I believe these headwinds are temporary and that long-term buy and hold investors could pick up a bargain today at the current price.

FlexiGroup Limited (ASX: FXL)

Shares of the leading finance and leasing company have dropped 21% in the last 30 days after it warned of systems and goodwill impairments to the sum of $18.4 million. These impairments were the result of the discontinuation of its paymate, enterprise, and telecommunication business segments. It also took a $15.7 million provision for the lifetime loss in recovering its enterprise portfolio value, meaning its statutory profit after tax is now expected to drop by around 35% to $54.2 million. FY 2017 looks set to be a year of transition, but management expects the company to return to double-digit cash profit growth from FY 2018 onwards. In light of this, at the current price I believe FlexiGroup looks like an interesting option for investors.

UGL Limited (ASX: UGL)

The shares of engineering and services company UGL are down almost 35% in the last 30 days, with much of these declines coming in the last few days. This was due to management warning of potential contract losses to the tune of $200 million from its Inpex Ichthys liquified natural gas project. As negotiations are ongoing, I believe it is far too soon to consider an investment in UGL and would instead focus my attention elsewhere in the industry.

The post Is a price rebound coming for these 4 beaten-down ASX shares? appeared first on The Motley Fool Australia.

Just over a month ago, the infrastructure and environmental services consulting company saw its share price sink more than 20% in the opening minutes of trading, after the group announced its earnings before interest, tax, depreciation and amortisation (EBITDA) would be between $40 and $45 million – down significantly on the previous guidance of above $65 million.

Cardno has many clients in the mining, oi and gas sectors and has obviously been hit by the downturn in commodities prices, and its clients cutting back on their capital expenditure – something laboratory testing group ALS Ltd (ASX: ALQ) and a host of mining services companies can also attest to.

At the time, Cardno also said it might need to raise capital to stay within its bank leverage covenant. Clearly the bankers hold sway at Cardno and the company was forced to raise capital.

Last week Cardno announced that it was going to raise around $92.5 million to lower its debt via a non-renounceable rights issue, at an issue price of 40 cents per share. Shares in Cardno last traded at 93 cents.

Today the company announced that it had raised $26 million under the institutional offer, with just 91% of eligible shareholders taking up the offer.

The retail offer opens on Wednesday and will close on Monday, 20 June. Retail investors have the option of kicking in more capital or seeing their existing holding substantially diluted.

Many it seems have opted to sell out altogether.

Given private equity firm Crescent Capital hold almost half of Cardno, a takeover offer down the track appears on the cards. But shareholders will most likely be furious they didn't get out earlier, after Crescent offered $3.45 per share for one share out of every two it didn't already own in October 2015.

Foolish takeaway

Crescent Capital now has the opportunity to takeover Cardno at a much-reduced price, and with inherently less risk now that net debt is expected to be $91 million after the capital raising is completed.

The post Cardno Limited share price plunges…again appeared first on The Motley Fool Australia.