Day: September 29, 2021

Why the Ausnet (ASX:AST) share price has surged 32% in September

a female superhero dressed in shiny green with a mask leaps in the sky with leg and arm outstretched in a leaping action.

The Ausnet Services Ltd (ASX: AST) share price has been one of the top performers in the S&P/ASX 200 Index (ASX: XJO) in September. Shares in the Aussie electricity transmission network provider have rocketed 32% higher so far this month.

Let’s take a look at what’s driving the energy infrastructure group’s valuation to new heights right now.

Why the Ausnet share price has surged 32% in September

Prior to this month, shares in the Aussie company had largely traded between $1.60 and $2 per share for most of the year. However, that all changed on Monday 20 September.

The Ausnet share price rocketed 19.2% higher in the space of one day. The reason? A juicy takeover offer from the world’s largest alternative asset manager, Brookfield Asset Management.

Brookfield and associated entities lobbed an offer to acquire 100% of Ausnet shares for $2.50 per share. That represented a 26% premium to Ausnet’s closing price on Friday 17 September and a 35% premium to its 30-day weighted average share price.

The unsolicited, indicative, non-binding and conditional proposal sent the Ausnet share price soaring. The revised proposal followed previous bids from Brookfield at $2.35 per share and $2.45 per share.

Ausnet’s market capitalisation has swelled to $9.80 billion following the recent takeover bids. It was pushed even higher when news broke of APA Group‘s (ASX: APA) interest.

The rival electricity distributor one-upped Brookfield’s bid with a $2.60 per share conditional offer of its own. The ensuing bidding war between the two groups, including complaints from APA about an exclusivity agreement between Ausnet and Brookfield, has pushed the Ausnet share price higher in September.

Shares in the network infrastructure group have been soaring higher and amongst the ASX 200’s top performers this month.

The post Why the Ausnet (ASX:AST) share price has surged 32% in September appeared first on The Motley Fool Australia.

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

Before you consider Ausnet, 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 Ausnet 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 Ken Hall 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 APA Group. 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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Wesfarmers (ASX:WES) share price gains as ACCC approves Bunnings acquisition

A smiling woman with a display of indoor tiles

The Wesfarmers Ltd (ASX: WES) share price is gaining today after the Australian Competition and Consumer Commission declared it won’t oppose Bunnings’ acquisition of Beaumont Tiles.

The competition watchdog has found the acquisition proposed by Bunnings – a subsidiary of Wesfarmers ­– won’t significantly decrease competition among Australian tile retailers.

At the time of writing, the Wesfarmers share price is $55.70, 0.7% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 1.4% today. The All Ordinaries Index (ASX: XAO) is also up 1.3%.

Let’s take a closer look at today’s announcement from the ACCC.

Bunnings’ acquisition gets the go ahead

The Wesfarmers share price is in the green amid news the ACCC won’t stop Bunnings from acquiring Beaumont Tiles.

The watchdog noted that Bunnings doesn’t currently have a large presence in tile sales in Australia.

However, it did warn it will pay particularly close attention to any further acquisitions the home improvement and lifestyle retailer might make.

Wesfarmers announced in April that Bunnings planned to purchase the speciality tile retailer. The Wesfarmers share price gained 1.1% on the day the news was released.

Following the acquisition, the two businesses will operate separately with the current Beaumont Tiles management to continue in their roles.

How much the home improvement giant will pay for Beaumont Tiles hasn’t been disclosed.

ACCC commentary 

Commenting on the acquisition, ACCC chair Rod Sims said:

Specialist tile retailers have a far more extensive range [than Bunnings], displayed in dedicated tile showrooms with specialist staff who can provide design and product advice to customers and referrals to tilers…

By contrast, Bunnings generally sells small volumes of tiles in-store to Do-It-Yourself customers, and tilers, and other trades people undertaking small jobs…

Stronger competition may pose challenges for some tile retailers, but it is unlikely to lead to a substantial lessening of competition in this market.

Beaumont Tiles has more than 110 retail locations in Australia, whereas Bunnings has more than 300 stores nationwide.

Wesfarmers share price snapshot

Today’s boost included, the Wesfarmers share price has gained 8% year to date. It is also 25% higher than it was this time last year.

The post Wesfarmers (ASX:WES) share price gains as ACCC approves Bunnings acquisition appeared first on The Motley Fool Australia.

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

Before you consider Wesfarmers, 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 Wesfarmers 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 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 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 BlueBet, Gold Road, Li-S Energy, & Myer shares are dropping

share price dropping

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.45% to 7,300.9 points.

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

BlueBet Holdings Ltd (ASX: BBT)

The Bluebet share price is down almost 3% to $1.85. This sports betting company’s shares have come under significant pressure this month amid concerns over its US expansion. This follows a couple of unsuccessful state betting license applications. Investors appear concerned that cracking the US market may be harder than anticipated.

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price has fallen 2.5% to $1.17. This morning the team at Macquarie released a broker note relating to this gold miner. Although it has retained its outperform rating, it has cut its price target on Gold Road’s shares by 6.5% to $1.40. It notes that issues at its Gruyere operation are impacting production.

Li-S Energy Ltd (ASX: LIS)

The Li-S Energy share price has tumbled 9.5% to $2.18. This decline appears to have been driven by profit taking from investors after a significant gain following its IPO. The battery technology company’s shares are still up 155% since hitting the ASX boards on Tuesday. Li-S Energy raised $34 million at 85 cents per share.

Myer Holdings Ltd (ASX: MYR)

The Myer share price has fallen 6.5% to 58.5 cents. As with Li-S Energy, this decline appears to have been driven by profit taking from investors. For example, even after this decline, the Myer share price is up approximately 90% since the start of the year. A strong turnaround in the department store operator’s performance is behind this gain.

The post Why BlueBet, Gold Road, Li-S Energy, & Myer shares are dropping appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 recommended BlueBet Holdings Ltd. 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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Own Magellan (ASX:MFG) shares? Here’s what you’re invested in

Man looking upwards contemplating which shares to buy

Magellan Financial Group Ltd (ASX: MFG) shares are an easy way for investors to get diversified exposure on the ASX. Magellan is an Aussie investment manager that focuses on global equities and global listed infrastructure.

Those are not necessarily the easiest asset classes to invest in for the average Joe. However, investors might be curious as to what actually underpins their Magellan investments.

Here’s a look at what the Aussie investments group is actually holding right now.

Magellan’s Funds

Magellan has a number of different investment strategies and vehicles that it uses within its Global Equities strategy. For instance, there is the listed Magellan Global Fund Closed Class (ASX: MGF) which targets a cash yield of 4% per annum across 20-40 companies.

Magellan also has exposures across its direct-investment vehicles such as the Magellan Global Fund (Hedged) and Magellan High Conviction Fund.

In Global Infrastructure, there is the direct-investment Magellan Infrastructure Fund, as well as the listed Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) (ASX: MICH).

Investors purchasing Magellan shares are essentially getting a look through exposure to these diversified strategies.

What are you investing in with Magellan shares?

Magellan shares have been struggling in 2021 even as global markets have been climbing higher. So, what’s driving the difference?

Some of the reasons have been to do with Magellan’s own investors. Investing in Magellan as a listed investment company means investors are getting exposure to factors affecting the business, over and above just the pure investment performance.

For instance, Magellan shares were under pressure yesterday as reports emerged of a key institutional investor’s review of the Magellan mandate.

Leaving aside business issues to one side, investors would be keen to know some of the key holdings underpinning their Magellan investment aside from stakes in the underlying investment vehicles.

There have been some significant recent investments from the Aussie group. These include taking sizeable stakes in FinClear, Mexican fast food chain Guzman y Gomez, and investment banking upstart Barrenjoey Capital Partners.

While Magellan shares are struggling right now, investors will be hoping the pivot towards these strategic stakes can help drive future growth for the investment manager.

The post Own Magellan (ASX:MFG) shares? Here’s what you’re invested in appeared first on The Motley Fool Australia.

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

Before you consider Magellan, 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 Magellan 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 Ken Hall 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 recommended Magellan Infrastructure Fund. 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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