{"id":55622,"date":"2014-08-07T14:10:22","date_gmt":"2014-08-07T18:10:22","guid":{"rendered":"http:\/\/countingpips.com\/?p=55622"},"modified":"2014-08-07T14:10:22","modified_gmt":"2014-08-07T18:10:22","slug":"why-the-orica-ltd-share-price-slumped-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/why-the-orica-ltd-share-price-slumped-today\/","title":{"rendered":"Why the Orica Ltd Share Price Slumped Today"},"content":{"rendered":"
August 7, 2014<\/div>
\r\n<\/div><\/div>

By MoneyMorning.com.au<\/u><\/a><\/p>\n

What Happened to Orica’s Share Price?<\/h2>\n

Shares in explosives and chemicals maker Orica Ltd [ASX:ORI]<\/strong> fell by more than 3% today. It\u2019s been a tough few weeks for the company, whose shares have slumped by nearly 9% since late July.<\/p>\n

Why Did This Happen to ORI Shares?<\/h2>\n

This morning Orica announced its intention to spin off its chemicals division, by either demerger or sale. The company will seek to focus on its core mining services business.<\/p>\n

This seems opportunistic of Orica, which has fielded a number of unsolicited enquiries about its chemicals business from private equity and global strategic buyers.<\/p>\n

The market has reacted cautiously to Orica\u2019s attempt to \u2018double down\u2019 on mining services. That\u2019s why the shares have faltered in today\u2019s trading.<\/p>\n

What Now for Orica Ltd?<\/h2>\n

There is certainly scope here for investors to reap rewards. Orica has solid form when it comes to spinoffs \u2014 its demerger of Dulux Paints in 2010 rewarded investors handsomely.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Mining companies will always need explosives\u2026even more so if they want to work existing mines harder. That should guarantee demand for Orica\u2019s products into the future. <\/p>\n

Any cyclical upswing in commodity markets would bode well for this stock. More immediately, if a buyer lobs a great bid for Orica\u2019s chemicals business, investors who buy the stock on this dip should enjoy the benefits. <\/p>\n

In any case, you\u2019ll be paid a fully-franked dividend yield of nearly 5% to own the shares until mining services sentiment improves.<\/p>\n

Cheers, Tim Dohrmann<\/strong>+<\/strong><\/a>
\nSmall-Cap Analyst, Australian Small-Cap Investigator<\/em><\/strong>
\nJoin Money Morning on Google+ <\/span><\/a><\/strong><\/p>\n

The post Why the Orica Ltd Share Price Slumped Today<\/a> appeared first on Stock Market News, Finance and Investments | Money Morning Australia<\/a>.<\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What Happened to Orica’s Share Price? Shares in explosives and chemicals maker Orica Ltd [ASX:ORI] fell by more than 3% today. It\u2019s been a tough few weeks for the company, whose shares have slumped by nearly 9% since late July. Why Did This Happen to ORI Shares? This morning Orica announced its intention […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-55622","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=55622"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55622\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=55622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=55622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=55622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}