The Rhythm Biosciences Ltd (ASX: RHY) share price had a day to forget on Monday.

The medical diagnostics technology’s shares returned from a trading halt and crashed as much as 52% to 46 cents.

The ASX All Ords share ultimately recovered a touch and ended the day with a 38% decline to 59.5 cents.

Why did this ASX All Ords share get hammered?

Investors were hitting the sell button in a panic on Monday after the company was dealt a blow by the Australian Therapeutic Goods Administration (TGA).

According to an announcement, after the receipt and analysis of a thorough application review and its most recent engagement with the TGA, the company has decided to withdraw its current ColoSTAT application for an Australian Register of Therapeutic Goods (ARTG) listing.

Rhythm Biosciences’ ColoSTAT product is a simple, low-cost, blood test for global mass market detection of colorectal cancer. It notes that worldwide, colorectal cancer is the third most common cancer in men and the second most common in women, accounting for an estimated 1.9 million new cases and 935,000 deaths annually.

Management advised that it is withdrawing its application because it simply does not have enough time to answer the regulator’s questions within the necessary timeframe. This is because some questions will require new internal analytical testing and the TGA is reluctant to provide an extension beyond its 20 business days timeframe.

The good news is that this isn’t the end of the road for ColoSTAT in Australia. Management intends to submit a new application with the TGA, in line to better meet their feedback and questions posed.  And while the company doesn’t know when the new application will be submitted, it does expect it to be in the current calendar year.

Furthermore, this withdrawal does not impede the ASX All Ords share’s proposed market entry activities into other CE Mark conforming territories and additional international markets, including the United States.

Management commentary

Rhythm Biosciences’ Executive Chairman, Otto Buttula, was disappointed but remains positive on the future. Buttula said:

Having decided to withdraw RHY’s current TGA submission for ColoSTAT is clearly disappointing for all stakeholders. Nonetheless, we appreciate the thorough review undertaken and meaningful dialogue with the TGA. Following the TGA’s most recent feedback, both written and verbal and management / Board review, we believe that time constraints imposed result in a better opportunity for the Company to submit a new and strengthened application, in line with the questions raised in the TGA application review. Hence, with a new submission to be completed in line with the questions raised by the TGA, we believe we have a better blueprint to follow in framing our new application.

Therefore, I remain confident of a TGA registration for ColoSTAT in the future. Whilst Australia, as our home, remains important, it represents one of the smaller markets in our global aspirations and the Company has always intended to build the majority of its revenues in overseas territories. We look forward to keeping the market abreast of other positive developments in the near term.

The post Guess which ASX All Ords share just crashed 52% on a TGA update 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 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 Scott Phillips.

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Are you wanting to gain exposure to the mining sector? If you are, then read on!

Listed below are two ASX 200 mining shares that analysts are tipping as buys. Here’s what they are saying about them:

Iluka Resources Limited (ASX: ILU)

The first ASX 200 mining share that could be in the buy zone is Iluka. It is a mineral sands and rare earths producer with a number of operations across South Australia and Western Australia.

Analysts at Goldman Sachs are very positive on the company. This is due partly to the favourable outlook for mineral sands, and its exposure to rare earths.

Goldman commented:

We are positive on ILU’s project pipeline and forecast >30% production growth in mineral sands volumes, c.18ktpa of Rare Earths (~3.5-4ktpa of high value NdPr). We think ILU’s Eneabba RE refinery is a strategic asset considering it will be only the third western world RE refinery.

The broker currently has a conviction buy rating and $12.50 price target on Iluka’s shares.

Santos Ltd (ASX: STO)

Another ASX 200 dividend share that could be a buy is Santos.

Thanks to its recent merger with Oil Search, it is now one of the world’s largest energy producers with a collection of world class operations and projects.

The team at Morgans is positive on the company due to its growth prospects and diversified earnings base. The broker commented:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against the backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.

Morgans has the company on its best ideas with an add rating and $8.60 price target.

The post 2 ASX 200 mining shares to buy in March: analysts 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 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 Scott Phillips.

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As an ASX 200 big four bank share, Commonwealth Bank of Australia (ASX: CBA) is beloved by many an investor here on the ASX. The ASX bank shares are perhaps most famous for their large and fully franked dividend payments.

As such, they are a staple of income investors, pension funds and superannuation accounts all over the country.

And none more so than CBA. As ASX’s largest and best-performing bank (over the past ten years), CBA is one of the most popular investments out there.

So if you told an investor they could get a yield of 6.78% from CBA right now, they would probably hand over the cash without further questioning. But if that investor did start asking questions, they might realise that something is amiss.

Come 30 March later this month, CBA will have paid out two dividends over the past 12 months of $2.10 per share each. That will give the CBA share price a dividend yield of 4.26% based on the share price of $98.60 that the bank has closed at today.

4.26% is a long way from 6.78%. Even when grossed up with CBA’s full franking, that only comes out at a 6.09% yield. So what’s the deal here?

CBA issues high-yielding bonds

Well, this yield won’t be coming from CBA shares themselves. Rather, it will hail from the new round of fixed-interest investments, or bonds, CBA has reportedly issued.

According to a report in The Australian today, CBA has just wrapped up a subordinated and unsecured bond issue after raising $1.75 billion from the program and gaining $3.46 billion in demand. These bonds are fixed-rate, 15-year bonds with a non-call period of ten years. They will be offering a yield of 6.775% to investors.

It seems this is becoming a bit of a trend on the ASX. CBA’s fellow big four bank ANZ Group Holdings Ltd (ASX: ANZ) issued a similar batch of bonds just last month. Ditto with another blue chip ASX 200 share in Telstra Group Ltd (ASX: TLS).

CBA has yet to announce the eligibility criteria for these new bonds. But if the offer is similar to those of ANZ and Telstra, it’s likely that most ordinary retail investors won’t be able to participate.

So perhaps the majority of income investors out there might have to make do with CBA’s dividend yield of 4.26% for the time being.

The post Bond blitz: CBA offers 6.7% yield, but not on its shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Telstra Group. 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a wild journey for TPG Telecom Ltd (ASX: TPG) shares over the past few years. Acquisitions, court hearings, and attempted deals with their biggest competitor. If the telecommunications industry was your thing, you could almost make a movie from the twists and turns that TPG has traversed in recent times.

Once upon a time, I was a shareholder in TPG — impressed with its rise to prominence in a competitive market. The company held a spot in my portfolio for close to four years, commencing in April 2017.

I decided to sell out of my holding completely once all the dust settled on its merger with Vodafone. At that point, TPG was at the largest, and arguably, most competitive position in its history.

What was the thinking behind this decision?

Where it began

To understand why I eventually hit sell on my TPG shares, I need to explain why I originally invested in the underdog.

At the time, I was still green in terms of my investing experience. As with most newcomers, the speculative neck of the woods is where curiosity first led me.

However, I soon got a taste for value-orientated companies. Businesses that were proven, profitable, and showed promise for delivering shareholder returns exceeding that of the S&P/ASX 200 Index (ASX: XJO).

In my search, I stumbled upon a company I had heard of before, TPG. My partner — who lived in Sydney back then — was a TPG customer. She opted for NBN internet with them over the other big names, such as Telstra Group Ltd (ASX: TLS) and Optus, due to their cheaper pricing.

To my excitement, I found that TPG — despite undercutting its competition — was growing its net profits after tax (NPAT) at an incredible rate. Earnings were $207.5 million at the end of the first half of FY17. Comparatively, the company’s first-half NPAT was $90.1 million only three years prior, as shown below.

In my eyes, here was a company that could deliver a competitive service at a cheaper price thanks to its growing participation in industry consolidation. Additionally, word on the street then was that TPG had plans to expand its successful campaign against the incumbents in the 5G mobile market.

It ticked my boxes: a history of a proven strategy, signs of competitive advantage, room for further growth, and an invested CEO steering the ship (founder David Teoh).

Why I sold my TPG shares

Fundamentally, the unravelling of my original investment thesis is what prompted me to sell my TPG shares in April 2021 for $6.10 apiece.

Firstly, the telecom provider’s plans of delivering a low-cost 5G mobile network began to crumble in 2019 amid a ban on Huawei infrastructure. The China-made devices were intended to underpin TPG’s competitive small-cell network.

Fortunately, TPG has managed to still tap into the opportunity through the merger with Vodafone Hutchinson Australia. However, I was concerned that Vodafone might come with some unwelcomed baggage given a series of $100 million-plus losses prior to the deal.

Furthermore, the entrepreneurial spark of David Teoh was extinguished on 26 March 2021 when the founder decided to resign.

Simply put, most of the factors that played into my justification for buying were now gone — or at minimum, far murkier than before. Feeling unconfident, it seemed only reasonable to sell my TPG shares and reassess my options.

Time to take another look?

Including dividends, TPG delivered a 15.2% total return over my holding period. Since selling, shares in the telco giant have netted a 12% loss after dividends.

I’m not going to claim that I knew the share price was going to fall, because I didn’t. I was more at odds with the likelihood of TPG shares outperforming the Aussie benchmark over the next five years.

When I sold, I was not convinced that this Aussie internet provider could unlock enough value to beat an equal investment in something like a Vanguard Australian Shares Index ETF (ASX: VAS).

Credit where it is due, TPG has been growing its earnings and dividends while keeping debt under control, as pictured above. As a result, shares in the company now offer a respectable dividend yield of 3.6% at a 65% payout ratio.

If the second-largest internet provider is able to continue to steadily grow earnings by chipping away at the market share of Telstra and Optus, I’d consider making a spot for TPG shares in my portfolio again.

However, the competitive pressures from new retail service providers and emerging low Earth-orbiting (LEO) satellites leave me with reservations.

In conclusion, I believe I made a reasonable investment decision at the time. As famed investor Peter Lynch once said, “Know what you own, and know why you own it.”

Following the changes at TPG, I personally no longer knew a solid reason for owning a piece of the company.

The post Was I dumb to sell my TPG shares? appeared first on The Motley Fool Australia.

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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 has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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