Four ASX shares that are avoiding the market selloff today are listed below. Here's why they are rising:

Decmil Group Limited (ASX: DCG)

The Decmil Group share price is up 66% to 28.2 cents. Investors have been buying the mining services company's shares after it received and accepted a takeover offer from Macmahon Holdings Ltd (ASX: MAH). The two parties have agreed to a deal for 30 cents per share, which represents a 76% premium to where Decmil's shares ended yesterday's session. The Decmil board is recommending that shareholders vote in favour of the deal. This is in the absence of a superior proposal and subject to the independent expert's report.

Southern Cross Electrical Engineer Ltd (ASX: SXE)

The Southern Cross Electrical Engineer (SCEE) share price is up 6% to $1.20. This morning, this electrical, instrumentation, communication and maintenance services provider announced a major new contract win. SCEE's Heyday subsidiary has been awarded extensions at two data centres in New South Wales and a range of buildings projects in the ACT, totalling ~$50 million. Managing director, Graeme Dunn, commented: "Only last month we announced our fourth award at NEXTDC's Artamon Data Centre and this new award at that location further demonstrates the track record for delivery that Heyday has in this fast-growing sector."

Spartan Resources Ltd (ASX: SPR)

The Spartan Resources share price is up 9% to 62.7 cents. This follows the announcement of a major new gold discovery at the Dalgaranga Gold Project in Western Australia. Spartan Resources, which was formerly known as Gascoyne Resources, revealed that it has discovered a new high-grade gold lode immediately south of the 952koz Never Never Gold Deposit at the 100%-owned project in the Murchison region. The gold explorer's CEO, Simon Lawson, believes the discovery is another game-changer.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is up 1% to $13.05. This morning, Telix announced that the United States Food and Drug Administration (FDA) has granted Fast Track designation to its investigational glioma imaging product, TLX101- CDx. The granted Fast Track designation is for the characterisation of progressive or recurrent glioma using positron emission tomography (PET). It provides Telix with an expedited review and closer consultation with the FDA during the review process.

The post Why Decmil, SCEE, Spartan Resources, and Telix shares are pushing higher appeared first on The Motley Fool Australia.

In morning trade, the ASX mining services stock is up 65% to a 52-week high of 28 cents.

Why is this ASX mining stock rocketing?

Investors have been scrambling to get hold of the company's shares this morning after it received and accepted a takeover offer from Macmahon Holdings Ltd (ASX: MAH).

According to the release, the two parties have entered into a scheme implementation deed under which Macmahon will acquire 100% of the issued share capital of Decmil Group by way of inter-dependent schemes of arrangement for a cash price of $0.30 per share.

This represents a 76% premium to where the ASX mining stock last traded.

The transaction will be subject to the satisfaction of certain conditions. This includes the independent expert's report, approval by Decmil shareholders, and by the court.

In addition, Macmahon intends to acquire all Decmil redeemable convertible preference shares on issue for the aggregate of 34.3 cents per share via a separate, inter-conditional, contemporaneous scheme of arrangement.

Decmil board recommends the deal

The Board of Decmil has unanimously recommended that its shareholders vote in favour of the schemes. This is in the absence of a superior proposal and subject to the independent expert's report.

Furthermore, Decmil's major shareholders Thorney Group and Horley, have also indicated their support for the transaction. They have confirmed that they intend to vote in favour of the schemes, subject to the same qualifications.

Thorney Group and Horley together hold 26.7% of the ordinary shares and 38% of the preference shares outstanding.

Macmahon shares tumble

The news doesn't appear to have gone down well with Macmahon shareholders. Its shares are down a sizeable 8% in morning trade.

However, management believes the deal makes a lot of sense. It highlights that it is "consistent with Macmahon's strategic focus of achieving continued earnings growth while diversifying earnings into the less capital intensive civil infrastructure business."

It also feels that the transaction "offers a strategic fit, enhances and accelerates earnings diversification, with financial metrics that are compelling for Macmahon shareholders."

Whereas over at Decmil, its board believe the offer is too good to turn down. The ASX mining stock's chairman, Andrew Barclay, stated:

While the Decmil turnaround is starting to gather pace, Macmahon's all-cash offer at a strong premium to Decmil's current share and redeemable convertible preference share prices provides our securityholders with both certainty and accelerated value today that Decmil's position as a standalone company cannot be guaranteed to provide.

The post This ASX mining services stock is exploding 65% on takeover news appeared first on The Motley Fool Australia.

He founded Thorney Group after overseeing the investments of cardboard magnate Richard Pratt and Australia's first billionaire Robert Holmes a Court.

These days he's in the rich list himself, ranked the 73rd wealthiest person in the nation on the current The Australian rankings.

As well as a private fund, Waislitz runs 2 ASX-listed investment funds — Thorney Technologies Ltd (ASX: TEK) and Thorney Opportunities Ltd (ASX: TOP).

He recently named 3 ASX shares those funds hold that he currently has the most hope for:

Signing up massive clients and cash in the bank

Perth business Yojee Ltd (ASX: YOJ) makes software that manages logistics and supply-chain management.

The share price hasn't done a great deal this year, dropping from 20 to 18 cents as of Thursday's market close.

But Waislitz likes how it looks ready for explosive growth.

"This is a company that's progressively signed up 4 of the largest 10 logistics companies in the world," he told a Reach Markets webinar.

"It's got cash in the bank to roll out that growth with those companies and it's time is coming."

For the 2021 financial year, Yojee reported 63% revenue growth — but that failed to sustainably push the stock price up.

The Thorney team is willing to be patient though.

"We're quite excited about them," said Waitslitz.

"It's a company to watch… At the moment the revenues are relatively small, but we're hopeful that over the next 1 to 3 years you might see them really power ahead."

2 engineering ASX shares that'll cash in on infrastructure boom

The other 2 ASX shares, which are both engineering-related, are held by the Thorney Opportunities fund.

Southern Cross Electrical Engineer Ltd (ASX: SXE) provides services to clients like data centres, mining sites, and utilities.

For a business that provides a 6% dividend yield, the share price is very low.

"We think it's really cheap because it's trading at just over 3 times EBITDA [earnings before interest, taxes, depreciation, and amortisation] to the enterprise value," said Waislitz.

"Sitting on cash, it's really well-positioned to win a lot of work into that [resources and infrastructure] thematic."

He also thought management was "too conservative" in its performance forecasts.

Southern Cross shares closed Thursday at 66 cents, after starting the year at 57 cents.

Construction engineering company Decmil Group Limited (ASX: DCG) has just been a nightmare for investors recently.

Its stock price has dropped about 90% over the past 2 years.

But after dealing with those "bad contracts", Waislitz is convinced the ASX share has hit the bottom now.

"They had to recapitalise their balance sheet to deal with their debt and allow them some growth capability, which they've done," he said.

"They've had a change of leadership at the CEO level, which has happened, and some other executives."

The Thorney team thinks Decmil is set to rake in more than $500 million of revenue for the current financial year, compared to $298.1 million for the 2021 financial year.

"In a sense, a new beginning for this company that's been around for a while."

The post 3 ASX shares Australia's 73rd richest person loves appeared first on The Motley Fool Australia.

The Macquarie share price is down 2.9% today to $149 per share, adding to a loss of 4.15% this month, while Transurban shares have fallen 3.5% today and 2.9% over the past month.

Who's benefitting from the infrastructure boom?

The Australian policy think tank's report centred on Macquarie's "inadequate development" of the Sydney Metro City and Southwest project.

The cost of the rail network upgrade has ballooned by more than half a billion dollars from its original contract of $2.7 billion, despite Macquarie winning the contract after submitting an unsolicited proposal to the NSW state government.

Macquarie's construction of Sydney Martin Place train station alone has risen by more than $200 million "with no justification provided in central documentation".

Meanwhile, Melbourne's West Gate tunnel construction, awarded to Transurban, has been delayed by two years, with no revelation of who's forking the bill for continued setbacks.

Queensland's 2018 rail upgrades for the state's New Generation Rollingstock trains also cost an additional $361 million in refitting to meet the nation's disability access requirements.

In their latest state budgets, Queensland, Victoria and NSW set aside more than $400 billion for infrastructure projects, with the federal government adding another $110 billion.

Grattan argued that state government spending sprees on infrastructure contracts have been overshadowing a lack of financial prudence in protecting against cost overruns.

Grattan calls for international competition

Australian government spending on rail projects is in the top quarter of OECD countries: 26% higher than in Canada, 29% higher than Japan.

Grattan argued that unsolicited proposals for construction projects should be subject to greater scepticism, given construction contracts have been skewed towards Australian companies:

It's common for governments to end up paying firms more than the amount publicly claimed when the contracts were signed, yet we rarely find out the legal basis of the claim, or how the size of the additional payment was arrived at.

Few firms have the technical and financial capability to win contracts worth $1 billion or more. So it's crucial that international firms can enter the Australian market, bringing global innovation and know-how.

In selecting a successful bidder, governments should not weight local experience any more heavily than is justified to provide infrastructure at the lowest long-term cost.

It also argues that governments should be willing to enforce original project budgets. 

When they sign a contract, they should show by their actions that they will not pay additional amounts for risks that contractors have agreed to take on.

In response, the Australian Constructors Association called many of the claims questionable while highlighting the benefits of creating greater efficiencies within the sector.

The ACA highlighted the need to focus on greater issues in construction: from a higher representation of women in its workforce to more focus on preventing construction worker suicide.

It said it always "advocates for maximising local content wherever commercially practical in a competitive bid process" and backed the efficacy of 'market-led proposals' such as Macquarie's Martin Place project.

The Grattan Institute's latest report on the cost of Australian infrastructure provides some useful recommendations that unfortunately are overshadowed by poorly supported claims that further damage an already fragile construction industry.

If we could just halve the gap in productivity growth between the construction industry and other industries over the past 30 years, we could construct an extra $15 billion of infrastructure every year for the same level of expenditure and employ an extra 15,000 people. That is equivalent to constructing another three Western Sydney Airports every single year.

Construction share price snapshot

So, is the Australian construction and industrials industry "fragile"?

You may think that record government infrastructure spending is good news for the biggest construction companies on the S&P/ASX 200 Index (ASX: XJO)? Think again.

Some ASX infrastructure and construction giants have performed relatively poorly, despite record spending and the ASX hitting its highest value over the past few weeks. Take Transurban and Decmil (ASX: DCG), for example. Their share price has fallen a respective 2.7% and 44% over the past 12 months.

And despite Australia's infrastructure boom, it's slightly more challenging to track the overall sector performance due to the diversification of many of its companies and the lack of a construction index on the ASX. Some companies are still performing well.

Recent losses in the Macquarie Group share price are possibly a result of controversial reports around its business handling of Nuix Ltd (ASX NXL), but it's still up 42% over the past 12 months.

Meanwhile, strong performers like Boral Limited (ASX: BLD) shares are up 13% this month and 162% over the past 12 months. The SRG Global (ASX: SRG) share price is also up by 113% over the past year. 

The post ASX construction giants under fire over cost blowouts, lack of competition appeared first on The Motley Fool Australia.

Today's update comes only 3 days after the company advised it had been awarded a $140 million contract to upgrade the Gippsland rail.

At the time of writing, the Decmil share price is trading 3.6% higher at 57.5 cents a share.

Bruce Highway to get an upgrade

According to the release, Decmil has secured a $25 million contract from the Queensland Department of Transport and Main Roads (DTMR). The contract involves upgrading a stretch of the Bruce Highway between Gin Gin and Benaraby.

As per the scope, Decmil will be responsible for road widening works, safety improvements, minor drainage repairs/enhancements, pavement, line marking, signage, safety barriers, landscaping, and street lighting. The works will commence this month and are expected to be completed by late 2022.

The company noted its strong track record for delivering infrastructure projects, specifically on the Bruce Highway. Today's win is certainly music to the ears of Decmil shareholders. Notably, this is in addition to Decmil's current $13.5 million works on the Bruce Highway between Calliope River and Mt Alma. Works are said to be progressing on the program.

Decmil CEO Dickie Dique stated, "Successfully delivering numerous projects for DTMR and our successful progression of another Bruce Highway contract was a key factor behind Decmil winning this contract."

Reduction in Gippsland share

Decmil also snuck in an update to its recent Gippsland rail contract win. Decmil advised its share in the $300 million consortium with Arup and Cimic Group Ltd (ASX: CIM) subsidiary UGL will now be $120 million, rather than the initially stated $140 million value.

Consequently, Decmil's announcement is a net increase of $5 million in contract value for the engineering company.

Decmil share price under construction

Decmil suffered a share price collapse of nearly 90% in late 2019. Since then, the company has undergone a board refresh and equity raise to set the business back on track. Despite this, the group's share price has sunk 65% over the past 12 months. 

However, with several contracts wins in recent months, Decmil is attempting to grow its pipeline and increase its profitability again. At the end of December last year, the group reported having $600 million of work in hand, 70% of which are government contracts. 

The post Decmil (ASX:DCG) share price lifts on $25 million contract win appeared first on The Motley Fool Australia.

At the time of writing, the engineering company's shares are up 5.26%, trading at 60 cents.

What did Decmil announce?

In this morning's release, Decmil advised that Rail Projects Victoria has awarded the company a contract to upgrade the Gippsland rail.

Decmil will join its partners through the VicConnect Consortium to undertake several works for the project. The work includes extending the Morwell crossing loop, upgrading level crossings and signalling, and adding second platforms at Bunyip, Longwarry and Morwell.

This will increase the frequency of trains running off-peak between Traralgon and Melbourne to every 40 minutes.

The VicConnect Consortium is a strategic alliance of Decmil, Arup, and Cimic subsidiary, UGL.

The entire Gippsland project is worth $300 million, with Decmil's share of the contract around $140 million. This brings the company's order book to $570 million thus far.

The company expects to start the major works sometime in the early part of this year and finish by mid-to-late 2022.

The initiative falls under the Victorian Government's $4 billion Regional Railway Revival program. It aims to improve every regional passenger rail line within Victoria while creating jobs in a COVID-19 environment. This includes the Ballarat line, Shepparton corridor, Warrnambool line, Geelong line, Bendigo and Echuca line, and the North-East line.

CEO commentary

Decmil CEO Dickie Dique welcomed the deal, saying:

We're delighted that the contract for this important project has been awarded to VicConnect.

We believe that the alliance with UGL and Arup to successfully deliver the Gippsland Line Upgrade will mark the beginning of a long and fruitful association.

This award enables Decmil to utilise the company's existing skillsets and equipment in a new market opportunity.

About the Decmil share price

The Decmil share price has fallen heavily over the past 12 months, losing more than 60%. Year-to-date, the company's shares are down almost 10%.

Decmil commands a market capitalisation of $73 million at the current share price, with approximately 128 million shares on issue.

The post Why the Decmil (ASX:DCG) share price is surging 5% today appeared first on The Motley Fool Australia.

At one stage, the engineering company's shares were up as much as 9% to 60 cents.

The Decmil share price eventually closed the day 7% higher at 59 cents.

Why did the Decmil share price zoom higher?

Investors were buying Decmil shares on Wednesday following the release of its half year results. Those results revealed a big improvement in its profitability despite softer revenues.

For the six months ended 31 December, the company reported a 30% decline in revenue to $165.1 million.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $5.6 million. This compares to an EBITDA loss of $19.9 million a year earlier.

It was a similar story on the bottom line, with its profit coming in at $0.6 million. This is a huge improvement on the $31.4 million loss it posted a year earlier.

Management notes that its strong result was underpinned by renewed strategy to target contracts with blue chip clients within Decmil's areas of core expertise.

Positively, at the end of the period, the company had work in hand of ~$600 million. It expects this to expand further during the second half as government spending on infrastructure development continues its strong momentum.

Management commentary

Decmil's Chief Executive Officer, Dickie Dique, commented: "The Company has successfully navigated several key operational and financial obstacles and emerged in an increasingly improved position as the first half of the 2021 fiscal year progressed."

"Decmil's business structure has been streamlined, our focus on prudent capital management has increased, and we are successfully securing lower risk contracts from blue chip clients. This has enabled us to beat our own expectations and achieve a period of profitability in FY21."

"Crucially, we have also reaffirmed our F150+ accreditation, which in conjunction with a reinforced working capital position will drive our ability to target the burgeoning tender pipeline of infrastructure works from the Federal and State Governments of over $7 billion within the Company's core capabilities."

Outlook

There was no guidance for the remainder of the year. However, management anticipates that the strong momentum experienced in the first half will continue into the second half of the fiscal year.

The company also intends to maintain its renewed focus on targeting lower risk projects with blue chip customers across the infrastructure, resources, energy and construction sectors. It notes that these sectors continue to have a strong pipeline of upcoming work.

The post Why the Decmil (ASX:DCG) share price jumped 9% today appeared first on The Motley Fool Australia.

Buy now, pay later

Buy now, pay later shares continued their inexorable rise last week. The Afterpay Ltd (ASX: APT) share price rose by 12.86%, while Sezzle Inc (ASX: SZL) surged a massive 30.13%. However Zip Co Ltd (ASX: Z1P) saw its share price fall by 2.22% in the wake of likely profit taking. 

Another fintech company to see a double digit rise last week was Pushpay Holdings Ltd (ASX: PPH) with a 12.13% increase on the back of updated earnings.

Discretionary retail

Better than expected retail sales figures, along with a strong progress report from Wesfarmers Ltd (ASX:WES), placed some fire under the retail discretionary sector. The ABS Retail Trade Survey found that retail turnover rose 16.3% in May. As mentioned, this was the largest seasonally adjusted rise in 38 years. 

AP Eagers Ltd (ASX: APE) saw its share price jump 12.48% and Domino's Pizza Enterprises Ltd. (ASX: DMP) also rose by 10.78%. In addition, Breville Group Ltd (ASX: BRG) saw a 13.67% rise in its share price. Lastly, small cap women's clothing retailer City Chic Collective Ltd (ASX: CCX) saw a very impressive increase of 19.77% on its share price for the week. 

Event-based ASX share price jumps

Three ASX small-cap shares stood out during the week with large-scale price rises due to specific events.

The Cardinal Resources Ltd (ASX: CDV) share price rose by 36.4% across the week on news that the company had recommended its shareholders accept a $300 million takeover deal.

The Healius Ltd (ASX: HLS) share price also jumped by 11.4% following news of a $500 million sale of its medical centres.  

Tiny engineering firm Decmil Group Limited (ASX: DCG) impressed the market by raising $52.4 million via a release of new shares due to start trading on 24 June. This capital raising is almost equal to the company's entire current market capitalisation. Decmil saw its share price surge by 23.63% following news of the entitlement offer.

Market laggards

The real estate sector has been the highest traded sector over the past three weeks. Investors appear to be split over just how significant the impact of COVID-19 will be on the retail shopping A-REITs. While many A-REITs finished last week marginally higher, two with the largest exposure to retail saw falls. 

The Vicinity Centres (ASX: VCX) share price fell by 3.8% as did the Scentre Group (ASX: SCG) with a decline of 4.33% for the week. 

Other significant ASX share price falls were seen by airline and travel companies. Sydney Airport Holdings Pty Ltd (ASX: SYD) fell by 6.06%. Moreover, small cap Alliance Aviation Services Ltd (ASX: AQZ) saw its share price dive by a worrying 7.81%. This included a 2.64% tumble on Friday following the company's announcement of a $30 million share purchase program, which was on top of its recent $90 million dollar capital raising. 

The post ASX share price winners and losers of last week appeared first on The Motley Fool Australia.

Decmil offers a range of services to the Australian resources, infrastructure, transport and energy sectors, specialising in engineering, construction, and maintenance. 

The company has a blue-chip customer base across its core markets, which includes big ASX names like BHP Group Ltd (ASX: BHP), Woodside Petroleum Limited (ASX: WPL) and Origin Energy Ltd (ASX: ORG).

Why the Decmil share price has been cut in half

At the end of last month, Decmil announced a $50 million equity raising to strengthen its balance sheet and provide working capital to fund its pipeline of opportunities.

The equity raising is being undertaken via a pro-rata entitlement offer on the basis of 4.2 new shares for every 1 existing share – at an issue price of 5 cents per share. This represents a 75% discount to Decmil's last trading price of 20 cents per share on 18 May.

As a result, Decmil shares were punished when they were reinstated to official quotation this morning. As part of being reinstated, Decmil announced the successful completion of the bookbuild for the institutional component of its equity raising.

The company received $30 million of commitments during the institutional bookbuild, along with commitments to partially underwrite up to ~$11 million of the retail component.

Decmil will issue around 600 million ordinary shares under the institutional offer. These shares are expected to commence trading on Wednesday, 10 June 2020.

With the retail entitlement offer being partially underwritten, the equity raising will raise a minimum of $41 million and a maximum of approximately $50 million.

The retail offer is expected to open on Friday, 5 June 2020 and close on Wednesday, 17 June 2020.

Management commentary

Commenting on the rationale behind the equity raising last week, CEO Dickie Dique said:

"Decmil had some significant challenges as we entered 2020, including a tight balance sheet. This capital raising addresses that issue and will set us up well to continue pursuing and delivering profitable new contract opportunities".

"With a reset balance sheet, ongoing contract wins and a refreshed structure, Decmil will be well placed to continue our business turnaround. We also expect that significant infrastructure spending in Australia over the next few years will further drive this turnaround and return Decmil to robust profitability and strong shareholder returns," he added.

At the time of writing, the Decmil share price is sitting 50% lower for the day at 10 cents per share after plunging 62.5% at the open.

The post Why the Decmil share price is plummeting 50% today appeared first on The Motley Fool Australia.

What is 'director buying'?

Directors often have exclusive insights into the companies they manage and are likely to purchase shares when they view them as undervalued.

Directors must only buy based on publicly available information and must inform the ASX of the trade by lodging an Appendix 3Y. Depending on the circumstances, the purchase by a director of shares can be seen as a vote of confidence in a business. Buys by multiple directors can act as a stronger signal, as can larger, rather than smaller, share purchases.

Who was buying what on the ASX?

We have studied director buys for the past month to bring you this ASX share with multiple insider buys during the month.

Decmil Group Limited (ASX: DCG)

Decmil offers design, civil engineering and construction services, accommodation services, mechanical fabrication and maintenance to the Australian resources and infrastructure industries.

Two Decmil directors acquired an aggregate of 172,500 shares in the company in late December following a dramatic fall in the company's share price. Shares in Decmil fell more than 50% between 11 December and 24 December, plummeting from 90 cents to 42 cents. Decmil shares are currently trading at 48 cents.

On 12 December, Decmil announced it expected a negative impact on its cash position of approximately $14 million, after Sunraysia Solar Farm had refused to award Decmil an extension of time and associated adjustment to relevant dates under the EPC contract for the construction of the Sunraysia Solar farm project.

Decmil believes it is entitled to an adjustment to these dates and has escalated the issue under the dispute mechanism of the contract. Decmil has confirmed it does not believe the issue will have a material impact on its earnings for the half year ended 31 December 2019, and that it retains sufficient cash reserves and working capital facilities.

Foolish takeaway

While a single insider buy may not be telling, several can provide a good indication that those best placed to know consider the shares good value. Perhaps Decmil's directors believe the recent fall in the company's share price will be short lived.

The post This ASX share has had multiple director buys. Is it a buying opportunity? appeared first on The Motley Fool Australia.

Not all shares have been able to follow the market higher today. Here's why these ASX shares are dropping lower:

The Cann Group Ltd (ASX: CAN) share price has fallen 4% to 97 cents. This is quite a turnaround for the cannabis company's shares on Tuesday. At one stage they were up as much as 25% to $1.26 after providing an update on its manufacturing progress. That update revealed that GMP extraction activities are underway for the first batches of medicinal cannabis resin.

The Decmil Group Limited (ASX: DCG) share price has tumbled 6% lower to 52.5 cents despite there being no news out of the services company. This latest decline means its shares have now lost 41% of their value since this time last month. Just before Christmas Decmil downgraded its earnings guidance and announced the resignation of its CFO.

The Northern Star Resources Ltd (ASX: NST) share price has dropped 3% to $11.77. With investors rotating back into risk assets and the market hurtling higher, demand for safe haven assets like the gold miners has softened today. Northern Star isn't the only gold miner sliding lower. The S&P/ASX All Ords Gold index is down 2.7% this afternoon.

The Reject Shop Ltd (ASX: TRS) share price is down almost 3% to $3.94. This morning the discount retailer responded to an ASX Price Query following a strong rise in its share price over the last three weeks. The company's shares went from a low of $2.86 to a high of $4.05 over the period of December 18 through to January 6. Reject Shop couldn't explain the rise but pointed to recent buying by a fund manager.

The post Why Cann, Decmil, Northern Star, & Reject Shop shares are dropping lower appeared first on The Motley Fool Australia.

Four shares that have fallen more than most today are listed below. Here's why they are tumbling lower:

The Decmil Group Limited (ASX: DCG) share price has crashed over 32% lower to 45.5 cents. This morning the construction and engineering group downgraded its earnings guidance and announced the resignation of its CFO. Decmil revealed that following an independent valuation, its Homeground Gladstone accommodation village will be revalued from $92.4 million to $85.4 million. The devaluation will result in a non-cash, pre-tax charge of $7 million to its results for the half year.

The Jumbo Interactive Ltd (ASX: JIN) share price has continued its slide and is down a further 8.5% to $14.38. This follows a very heavy decline last week after the release of underwhelming guidance for the first half of FY 2020. Due partly to an increase in business development costs, Jumbo expects to report net profit after tax growth of just 13% to $14.3 million. A year earlier it more than doubled its first half profit. This slowdown appears to have alarmed investors. In addition to this, Morgans downgraded its shares to a hold rating this morning.

The Nearmap Ltd (ASX: NEA) share price is down 6% to $2.50 despite there being no news out of the aerial imagery technology and location data company. This decline could be due to short sellers betting against the company due to growing competition and its increasing investment in R&D and sales and marketing. As of the latest data, Nearmap is the 10th most shorted share on the ASX.

The Pioneer Credit Ltd (ASX: PNC) share price has sunk 28% lower to $1.76. This morning Pioneer Credit returned from a four-month suspension after entering into a confirmation deed with its existing senior financiers and Carlyle Group. This will now allow the latter to push ahead with a takeover of the financial services company. Carlyle Croup has offered $1.82 per share, excluding any dividends paid between now and completion.

The post Why Decmil, Jumbo, Nearmap, & Pioneer Credit shares are tumbling lower appeared first on The Motley Fool Australia.

After being suspended for four months, the financial services company's shares have returned to trade today and dropped 29% lower to $1.75.

This makes it the second-worst performer on the index behind Decmil Group Limited (ASX: DCG).

Why is the Pioneer Credit share price crashing lower?

Pioneer Credit's shares returned to trade today after it entered into a confirmation deed with its existing senior financiers and Carlyle Group.

This confirmation deed will see Carlyle Group acquire the debt outstanding under Pioneer's existing $130 million senior secured debt facility from its existing senior financiers. This remains subject to the entry into substitution and transfer documentation and the satisfaction of other customary conditions precedent.

Pioneer has also signed a variation deed with Carlyle Group which will effect the waiver by Carlyle Group of its existing defaults under the senior facility and vary its key terms.

This includes the provision of additional interim funding of up to $28 million to fund the ongoing investment in purchased debt portfolios, payment of the special dividend, and working capital as required.

With an initial nine-month term, the replacement facilities are expected to provide Pioneer Credit with sufficient time and flexibility for the previously announced scheme of arrangement with Carlyle to be implemented. This is currently expected to occur in April 2020.

Scheme of arrangement.

At the start of the month Pioneer Credit revealed that it has entered into an agreement which will see Carlyle Group acquire 100% of Pioneer's shares outstanding for a consideration representing a total value of $1.82 per share.

This includes a 24 cents per share fully franked special dividend that Pioneer intends to pay prior to implementation of the scheme. 

Whilst this was a significant discount to the last trade price, it is arguably as good as it will get given the company's poor performance and significant debt load.

The post Why the Pioneer Credit share price crashed 29% lower on Monday appeared first on The Motley Fool Australia.

What did Decmil Group announce?

The Aussie construction and engineering group provided the market with an update this morning regarding a guidance downgrade and also announced the resignation of the company's CFO.  

Decmil announced that, following independent valuation, its Homeground Gladstone accommodation village will be revalued from $92.4 million to $85.4 million as at 31 December 2019. The devaluation was foreshadowed at the company's AGM earlier this year and will result in a non-cash, pre-tax charge of $7 million to the interim results for the half year.

In addition, Decmil announced that the company's Chief Financial Officer Mr Craig Amos has resigned from his position effective 20 December 2019. In the interim, the Decmil finance team will be overseen by Mr Damian Kelliher as acting CFO.

The resignation of Mr Amos was cited due to health and family reasons.

What else did Decmil provide an update on?

The market update also provided some details on the company's discussions with the New Zealand Department of Corrections regarding the Rapid Deployment Prisons program. Decmil notified the market that both parties have previously agreed to rest the contract process. In November, the Department informed Decmil that it was no longer going to reset the process and would work through the variations separately.

Decmil management does not believe that the change will have a material impact on earnings, however delays will impact the company's cash position. Corrections went with Decmil for the rapid-build modular units. The original contract was agreed in May 2017, but last year, it was varied with an expansion from 360 beds to more than 900, with costs surging to surged to $406.1 million.

Foolish takeaway

Following the market update, Decmil shares have tanked more than 31% at the time of writing. The company's share price is currently trading at $0.46, its lowest level since May 2009.  

The post Why the Decmil Group share price is getting smashed today appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lower 1.53% to 6,639.90
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) lower 1.45% to 6,753.30
• AUD/USD at US 67 cents
• Gold at US$1,476.34 an ounce
• Brent Oil at US$59.37 a barrel

The best-performing ASX 200 share today was the Mayne Pharma Group Ltd (ASX: MYX) share price which rose by around 19% after a US agreement.

It was quite a painful day for lithium miners. The share price of Galaxy Resources Limited (ASX: GXY) fell by 5.1% and the share price of Pilbara Minerals Ltd (ASX: PLS) dropped 4.8%.

The worst performer on today's share market day was the Hub24 Ltd (ASX: HUB) share price which fell 7%.

The share price of Decmil Group Limited (ASX: DCG) bucked the trend by rising 3.5% after the Mordialloc Freeway contract award.

High-flyer iSignthis Ltd (ASX: ISX) went into a suspension today, meaning its share price was unmoved.

The Bega Cheese Ltd (ASX: BGA) share price ended the day down 5%, making it one of the ASX's most sour performers.

Finally, the share price of National Australia Bank Ltd (ASX: NAB) dropped 2.3% after revealing more royal commission remediation.

Here are some of today's top stories:    

• 2 great ASX dividend shares giving their shareholders payrises every year
• Is now the time to buy the Vanguard Australian Share ETF for dividends?
• These are the 10 most popular shares to buy for SMSF investors
• Big news for Woodside Petroleum investors

The post ALL ORDINARIES finishes lower Wednesday: 8 ASX shares you missed appeared first on The Motley Fool Australia.

But shareholders should still be pleased with the ASL share price jumping 7.7% to $1.88 even though it couldn't hold today's high of $2.04 a share, which would have been it's best close since June 2018.

In contrast, the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index ended on a whimper with a 0.1% gain, while fellow mining engineering groups like the Decmil Group Limited (ASX: DCG) share price and Monadelphous Group Limited (ASX: MND) share price also outperformed the broader market.

Profit jumps on acquisition

Ausdrill, now renamed Perenti Global, posted a 14.2% increase in FY19 proforma revenue to $1.97 billion as net profit before amortisation of acquired intangibles (NPATA) more than doubled to $103.1 million, which is 5% ahead of management's guidance.

The big jump in earnings is due largely to its acquisition of underground mining contractor, Barminco, but the increase in top and bottom line hasn't come at the expense of margins.

What will also please investors is its strong cash conversion of 89% as contract engineering groups can sometimes have trouble turning reported profit into cash.

This helped fund the increase in its final dividend to 3.5 cents from FY18's 1.5 cents a share (although it did also pay a special dividend last year of 2 cents a share). While the net result may be the same, having only a regular final dividend means management must be confident that it can sustain the payment going forward.

Big FY20 outlook

Management is also painting a positive outlook for the group as it highlighted the $7 billion order book and is forecasting FY20 NPATA of around $140 million – a circa 36% increase over the last financial year.

You won't find many companies with such a big double-digit growth forecast for FY20, especially in this environment where brokers are trimming their earnings expectations for the current financial year.

The ASL share price isn't expensive either despite today's big rise, which gives the stock a one-year gain of around 13% when the ASX 200 is up by less than 3%. Perenti is trading on a trailing price-earnings (P/E) of 10 times based on its adjusted proforma number and is on a yield of a little over 5% (if franking is included).

If the group achieves its FY20 profit forecasts, the P/E could drop to under 7 times. You never want to pay too much for a mining contractor given the lack of earnings visibility and the volatility in its income from year-to-year, but on these numbers, the risk-reward equation looks attractive.

The post The ASX200 stock that's promising ~40% profit growth in FY20 appeared first on The Motley Fool Australia.

He is also a key figure in Thorney Opportunities Ltd (ASX: TOP) and Thorney Technologies Ltd (ASX: TEK).

In the interview he said that whilst fintech shares are running hot, there is plenty of opportunity for fintech shares to be successful due to major banks not investing where they should, therefore leaving them open to disruption.

He also said that a number of shares were trading with hefty multiples, but earnings are growing and balance sheets are more effective than in previous years. Earnings multiples shouldn't be relied on in isolation for valuation.

Some of the shares he said that he likes are Hub24 Ltd (ASX: HUB), Onevue Holdings Ltd (ASX: OVH), Finbar Group Limited (ASX: FRI), Decmil Group Limited (ASX: DCG) and Southern Cross Electrical Engineer Ltd (ASX: SXE).

The main company that he mentioned was Mesoblast Limited (ASX: MSB). He said that in the past few years it has reduced in value by two thirds, yet now has a commercialised product, is generating real revenue and has three potential billion-dollar treatments in early stage trials. Indeed, he said "I believe Meso is destined to take its place as one of the world's truly great biotechs."

He thinks Mesoblast still represents "exceptional" value and may be about to deliver on its long-held potential.

Foolish takeaway

It's a big vote of confidence for Mesoblast, but it could be some time before it reaches sustainable profitability. It wouldn't be at the top of my personal watchlist, as biotechs aren't my thing, but that doesn't mean it can't grow strongly from here.

The post One of Australia's richest people reveals his latest share ideas appeared first on The Motley Fool Australia.

The contract runs over three years with the option to extend for an additional two years.

Decmil's CEO said the contract win builds on the company's established reputation in the Coal Seam Gas sector and it expects, "increased activity in the sector and our Queensland business unit over the next few years".

Decmil shares were up 2% following the announcement.

Decmil is not the only heavy industry service provider that has been securing big contracts. Cimic Group Ltd (ASX: CIM), Downer EDI Limited (ASX: DOW), Watpac Limited (ASX: WTP) and Worleyparsons Limited (ASX: WOR) have all had success in recent times.

If you are looking for successful, profitable and stable companies, look no further than these top blue chip companies.

The post Decmil Group Limited (ASX:DCG) wins $150million contract appeared first on The Motley Fool Australia.

This has led to several shares being given buy ratings. Three that caught my eye are listed below. Here's why brokers think you should buy them:

BHP Billiton Limited (ASX: BHP)

According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $36.20 price target on the mining giant's shares after its board approved the development of the South Flank project in Western Australia. BHP made the move in order to replace the Yandi mine which is reaching the end of its economic life. Macquarie appears pleased that South Flank provides upwards of over two decades worth of iron ore production. I agree with Macquarie on this one and believe that BHP could be a good option for investors looking to gain exposure to the resources sector.

Decmil Group Limited (ASX: DCG)

A note out of Citi reveals that its analysts have retained their buy rating on Decmil Group but reduced the price target on its shares slightly to $1.40. The broker cut its price target after reducing its forecasts for the engineering company following its market update on Friday. Despite the reduced forecast the broker still sees a lot of upside for its shares and continues to believe it to be a share worth buying. Especially now that its market update gives it greater confidence in the company achieving the broker's forecasts. While I'm not a huge fan of Decmil, its shares are trading at under 12x estimated FY 2019 earnings. This could make it worth taking a closer look.

Mineral Resources Limited (ASX: MIN)

Analysts at Morgan Stanley have retained their overweight rating but cut the price target on this diversified miner and mining services company's shares slightly to $22.80 after it advised that its Wodgina direct shipping ore (DSO) operations will be brought to a premature end. Management made the decision after preliminary value analysis found that the profitability of spodumene was more than double that of DSO. As a result, management believes that continuing to sell large volumes of DSO effectively reduces the value that will be realised from the Wodgina ore body. The broker expects this to have a negative impact on earnings through to FY 2020, but still sees enough upside to maintain its buy recommendation. I think management has made the right decision and believe it will create greater value in the long-term. Like Morgan Stanley, I think Mineral Resources' could be in the buy zone.

The post Leading brokers name 3 ASX shares to buy 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 are ending the week in the red:

The Decmil Group Limited (ASX: DCG) share price has fallen 3.5% to $1.06 after the engineering company released a market update. Although Decmil expects second-half revenue from continuing operations to grow 50% on the first-half, it seems some shareholders were expecting even stronger growth. Management has, however, reaffirmed its FY 2019 revenue guidance of over $500 million.

The G8 Education Ltd (ASX: GEM) share price is down almost 3% to $2.35 despite there being no news out of the childcare operator. This latest decline means the G8 Education's shares have now halved in value since peaking at $4.71 late last year. Concerns over its falling occupancy rate as supply growth outpaces demand growth have largely been behind the share price decline. I would stay clear of the company until it reports major improvements in its performance.

The Primary Health Care Limited (ASX: PRY) share price has continued its decline and is down a further 1.5% to $3.48. The healthcare company's shares came under significant selling pressure on Thursday after UBS downgraded it to a sell rating with a $3.50 price target. Previously the broker had a buy rating and $4.00 price target on Primary Health Care's shares.

The Retail Food Group Limited (ASX: RFG) share price has also continued its decline and is 2.5% lower at 56 cents. Shareholders continue to head to the exits over concerns that the embattled food and beverage company could breach its debt covenants this year. For this reason, I would suggest investors stay well clear of Retail Food Group. The future looks decidedly bleak for the company in my opinion.

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