Day: September 15, 2021

API (ASX:API) share price rockets 16% as Wesfarmers boosts offer

Businessman outside jumps in the air

The Australian Pharmaceutical Industries Ltd (ASX: API) share price has had a jolt of enthusiasm on Thursday. This comes after the retail pharmacy company received a revised acquisition offer from Wesfarmers Ltd (ASX: WES).

All the excitement has propelled the API share price 16.5% higher to $1.48 at the time of writing.

Today’s offer follows previous attempts from the retail conglomerate to acquire API. However, these prior attempts have been futile, with API rejecting the unsatisfactory offers.

Let’s inspect the latest proposal more closely.

A sweetened API share price offer

It appears whatever API has got, Wesfarmers wants it badly. At least, badly enough to amp up its bid for the pharmaceutical retailer by 12.3% to $1.55 per share. After being rejected in July for its $1.38 proposal, Wesfarmers firmly has its sights set on doing a deal.

The revised offer for 100% of outstanding API shares comes to a total cash consideration of $764 million. This proposal also provides for the final fully franked dividend payment up to a maximum of 5 cents per share. However, any such cash component of dividends paid will come out of the total cash payment.

It appears the sweetened API share price offering has gained the blessings of the company’s largest shareholder, Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Recent data shows the investment conglomerate holds ownership of 18% of outstanding API shares.

Likewise, the board of Australian Pharmaceuticals intends to unanimously recommend the revised proposal. Which leaves the finalisation of acquisition down to due diligence and regulatory approvals.

What’s management’s thoughts?

Commenting on the revised bid, API CEO and managing director Richard Vincent said:

This revised offer better reflects the strength and potential of our stable of businesses that have been built by the efforts and passion of all of our people within API. Aligned with our vision of “enriching life”, we remain firmly focused on making a difference for all our customers and trading partners.

According to the release, Wesfarmers will have until 16 October to conduct its due diligence under the Process Deed.

Thanks to the surge in the API share price, the company now boasts a market capitalisation of $729 million.

The post API (ASX:API) share price rockets 16% as Wesfarmers boosts offer appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australian Pharmaceutical Industries right now?

Before you consider Australian Pharmaceutical Industries, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australian Pharmaceutical Industries wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why the Clinuvel (ASX:CUV) share price has rocketed 50% in a month

Monadelphous share price rio tinto A small rocket take off from a laptop, indicating a share price surge

The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price is having a great month on the ASX.

The company’s stock was seemingly boosted significantly by its financial year 2021 earnings and has managed to hold onto its gains.

Right now, the Clinuvel share price is $41.05, having gained 50.7% since this time last month and 0.8% since its previous close.

Let’s take a closer look at what Clinuvel reported within its financial year 2021 results.

What’s been driving Clinuvel on the ASX lately?

The Clinuvel share price has been performing exceptionally well since it released its annual results for financial year 2021.

Over the financial year just been, Clinuvel received a record $48.5 million of revenue and $24.7 million of profit after tax.

That represents respective increases of 43% and 63% on those of the previous financial year.

Clinuvel also announced a 2.5 cent dividend, in line with its dividend from the previous financial year. Though, Clinuvel’s dividends have historically been unfranked.

Over the 12 months ended 30 June 2021, Clinvuel implemented a long-term strategy for the development and commercialisation of its novel drug technology.

It also outlined its plans to increase its operations in countries including the US, Israel, and those in Europe in its results.

On the day it released its financial year 2021 earnings, the Clinuvel share price gained just 3.1%. However, it gained another 38.3% over the following 6 sessions.

Clinuvel share price snapshot

The Clinuvel share price’s recent 50% gain has added to its strong performance on the ASX.

Right now, Clinuvel’s stock is 80% higher than it was at the start of this year. It is also trading for 74% more than it was this time last year.

At its current share price, the company has a market capitalisation of around $2 billion. It has approximately 49 million shares outstanding.

The post Why the Clinuvel (ASX:CUV) share price has rocketed 50% in a month appeared first on The Motley Fool Australia.

Should you invest $1,000 in Clinuvel Pharmaceuticals right now?

Before you consider Clinuvel Pharmaceuticals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Clinuvel Pharmaceuticals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Which ASX shares are leading the way on the ASX 300?

ASX 300 share investors in suits running a race on an athletics track

The S&P/ASX 300 Index (ASX: XKO) is charging higher today following a mixed daily movement throughout the week.

At the time of writing, the ASX 300 is up 0.74% to 7,477 points. This means that over the past month, the index is now hovering around 2% lower.

Let’s take a look at which ASX companies are making headlines so far today.

Chalice Mining Ltd (ASX: CHN)

The Chalice share price is currently topping the charts, surging 9.62% to $8.09 during early afternoon trade.

Despite no recent news coming out of the mineral explorer, investors appear to be bullish on its future prospects. 

The company is focused on advancing its strategic deposit of critical, ‘green metals’ at the Julimar discovery in Western Australia.

Imugene Limited (ASX: IMU)

Another big mover on the ASX 300 is Imugene — its share price is currently up 6.10% to 43.5 cents.

The Australian immuno-oncology focused biopharmaceutical company also hasn’t released any market-sensitive news to the ASX.

However, its shares are being added to the ASX 300 Index. This enables fund managers to include Imugene shares when investing in the S&P/ASX Indices. The official date for the inclusion is 20 September.

Australian Strategic Materials Ltd (ASX: ASM)

The Australian Strategic Materials share price is pushing 4.81% higher to $10.90.

The company released its full statutory accounts yesterday, providing detailed information about its activities throughout the year.

And the companies in decline?

Lifestyle Communities Limited (ASX: LIC)

The worst performer on the ASX 300 at the time of writing is Lifestyle Communities, with its share price down 9.86% to $19.94.

According to its latest release, the company’s co-founder and managing director James Kelly offloaded a sizeable number of shares.

In total, 2 million fully paid ordinary shares were disposed of at a price of $21.50 apiece. Mr Kelly still holds around 7.1 million shares, a 6.8% stake in Lifestyle Communities.

Vulcan Energy Resources Ltd (ASX: VUL)

Lastly, the Vulcan share price has plummeted 7.67% to $14.68 on Thursday.

The lithium company announced a capital raise this morning after its shares were placed in a trading halt on Tuesday before market open.

Vulcan shares are still up roughly 1,500% over the past 12 months following strong investor sentiment in the company.

The post Which ASX shares are leading the way on the ASX 300? appeared first on The Motley Fool Australia.

Should you invest $1,000 in ASX 300 right now?

Before you consider ASX 300, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ASX 300 wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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How has the CBA (ASX:CBA) share price performed since reporting results?

CBA share price represented by branch welcome sign

The Commonwealth Bank of Australia (ASX: CBA) share price is up 1% at time of writing.

That’s largely in line with the 0.8% gain currently posted by the S&P/ASX 200 Index (ASX: XJO).

With just over a month having passed since the big 4 bank released its full 2021 financial year results (FY21), we take a look at how the CBA share price has been performing since.

But first, a snapshot of those results…

What FY21 results did the big 4 bank report?

CommBank reported its FY21 results on 11 August. The CBA share price closed the previous day at $106.56.

Some core metrics included a net profit after tax (NPAT) of $8.84 billion. That was up 19.7% from the NPAT reported for FY20.

The bank also declared a final, fully franked dividend of $2 per share. CommBank’s full year dividend of $3.50 per share was up 17% from FY20.

CBA’s share price was also scrutinised after the bank announced a $6 billion off-market share buy-back.

Commenting on the share buy-back, CommBank’s CEO, Matt Comyn said:

Strategic divestments have generated $6.2 billion in excess capital since 2018. Today we have announced an off-market buy-back of up to $6 billion of CBA shares as the most efficient and appropriate way to commence the return of surplus capital, as shareholders will benefit from a lower share count that will support return on equity and dividends per share.

How has the CBA share price performed since reporting results?

The CBA share price gained 1.5% on the day the bank reported its results, closing at $108.17.

Since market open on the day of reporting, CommBank’s shares are down 3.8%. By comparison, over that same period, the ASX 200 has lost 1.1%.

At the current share price, the bank pays a trailing dividend yield of 3.4%.

With a market cap of approximately $180 billion, CommBank is the biggest of the big-4 Aussie banks.

The post How has the CBA (ASX:CBA) share price performed since reporting results? appeared first on The Motley Fool Australia.

Should you invest $1,000 in CBA right now?

Before you consider CBA, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CBA wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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