The Amaysim Australia Ltd (ASX: AYS) share price is flying higher this morning after the company released an announcement in response to recent media speculation. 

Amaysim is a subscription utility provider, delivering mobile and energy plans to customers around the country. The company launched in 2010 and is Australia’s fourth-largest mobile service provider.

At the end of last year, Amaysim had 1.05 million total mobile subscribers and 201,000 energy subscribers.

Why the Amaysim share price is spiking today

This morning, Amaysim responded to recent media speculation about potential interest in its energy business.

“amaysim does, from time to time, receive a broad spectrum of interest in relation to its businesses. It is amaysim’s policy not to comment on, or engage with, market or media speculation,” the announcement read.

Shedding a bit more light, the company said, “as requested by the ASX, the company confirms that it engaged Luminis Partners some time ago to assist the Board with considering options to unlock shareholder value, including in respect of the energy business. A data room is maintained for the purpose of facilitating discussions with interested parties.”

Amaysim closed out the announcement by stating it is pleased with its overall performance in the current environment and confirmed it is in compliance with continuous disclosure obligations under the ASX Listing Rules.

Today’s announcement follows a report from the Australian Financial Review (AFR) last night that Origin Energy Ltd (ASX: ORG) is in the Amaysim data room, preparing a bid for Amaysim’s electricity and gas retailer, Click Energy. Amaysim acquired Click Energy in May 2017 for $120 million.

According to the AFR, the data room was originally set up to gauge investor interest in a potential capital injection or takeover. However, bidders quickly narrowed its sights to Amaysim’s energy operations.

The AFR believes the sale process has entered the second round and suitors have been sinking their teeth into detailed diligence measures. 

After being up by as much as 21.88% in early trade, the Amaysim share price is sitting 15.62% higher at the time of writing at 37 cents per share.

More reading

• Why Amaysim, Bingo, Brickworks, & BlueScope are pushing higher today
• 3 ASX sectors to benefit from local supply chains
• 3 ASX 200 energy shares to buy before crude oil price rises
• Leading fund manager sees good ASX buying opportunities
• Got $2,000? Here are 2 ASX 200 energy shares to buy today

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Amaysim share price flies 22% higher after confirming interest in its energy business appeared first on Motley Fool Australia.

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The Newcrest Mining Limited (ASX: NCM) share price has edged 4.10% higher in 2020, but is the ASX gold share in the buy zone?

Why the Newcrest Mining share price has outperformed in 2020

It’s been a reasonably good year for investors in ASX gold shares. The coronavirus pandemic has spooked investors and hurt the global economy. That means shares in Aussie gold miners like Newcrest have managed to outperform the S&P/ASX 200 Index (ASX: XJO).

The index is down nearly 13% this year despite climbing 1.10% higher yesterday. That means the Newcrest Mining share price has outperformed the ASX 200 benchmark by around 17%.

Those are some pretty handy numbers given the current market. As the global gold price continues to climb, so too does Newcrest’s value.

The Aussie gold miner now boasts a $25.1 billion market capitalisation. That means it is well entrenched inside the ASX 50 and could be climbing higher. 

But is now a good time to buy the ASX gold miner?

I personally think Newcrest shares are a touch overvalued right now. Investors are willing to pay a premium for safety, which has pushed Newcrest’s price-to-earnings (P/E) ratio to 28.45. 

With a dividend yield of 1.05%, Newcrest does offer some portfolio income while other ASX shares are slashing distributions. However, I still think there is a bit of panic buying surrounding ASX gold shares right now.

The ASX Resources sector could well outperform in 2020. There is a strong technical environment despite some question marks over exports and our relationship with China.

However, overall commodity prices are high, which is good for the Aussie economy. If the Aussie gold miner can continue production and post good sales numbers in August, the Newcrest Mining share price may be a bargain at $31.09 per share.

Foolish takeaway

The Newcrest Mining share price has managed to edge higher and significantly outperform in 2020. I think whether or not that trend continues is the big question.

In my mind, where the Aussie dollar goes and how geopolitical tensions play out in the coming months will be key.

More reading

• Is the NAB share price cheap today?
• Here are all the ASX 200 companies that announced capital raisings in May
• The big oil price recovery and bounce in ASX oil stocks are bringing out the bears
• 2 ASX 200 shares to watch on Tuesday
• Where to invest $5,000 into ASX 200 shares immediately

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Newcrest Mining share price a buy? appeared first on Motley Fool Australia.

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National Australia Bank Ltd. (ASX: NAB) shares have had a bumpy start to the year. The Aussie bank is trading at $18.07 per share at the time of writing. This is down 26.63% from where it started 2020 at $24.63.

So with all that’s happening on the ASX right now, is the NAB share price in the buy zone?

Why the NAB share price has slumped lower in 2020

The S&P/ASX 200 Index (ASX: XJO) is down 12.92% this year which means NAB shares are underperforming the index by quite a margin.

It’s not the only ASX bank share doing it tough right now. However, NAB has a large business banking segment that could be weighing on shareholders’ minds.

The coronavirus pandemic has spooked investors and raised question marks about global economic growth. Closer to home, many are wondering about loan performance in a downturn and the NAB share price has been sinking as a result.

NAB recently announced $807 million worth of pandemic-related provisions in its half-year earnings. The government stimulus programs are helping to prop up the economy but they won’t last forever.

However, there are signs that things are improving. Even the ‘best case’ forecasts have been bettered here in Australia and the economy is starting to re-open.

That could be good news for the NAB share price and investors. If businesses can start generating cash flow sooner than expected, loan impairments and lost earnings may be mitigated.

I think ASX bank shares can continue to be strong dividend shares in the future. That’s despite recent dividend cuts which will affect short-term portfolio earnings.

There are some who believe the neobanks will rise up and overtake the Big 4 in the coming decade. Even if that is the case, NAB has a stake in that game through its ownership of UBank.

Foolish takeaway

If you’re a buy and hold investor, I feel the NAB share price could represent a bargain at $18.07.

ASX bank shares could be in for a bumpy ride in 2020 but I still think the long-term picture is positive.

More reading

• Is the Newcrest Mining share price a buy?
• The big oil price recovery and bounce in ASX oil stocks are bringing out the bears
• 2 ASX 200 shares to watch on Tuesday
• How to value the big four ASX banks
• Where to invest $5,000 into ASX 200 shares immediately

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the NAB share price cheap today? appeared first on Motley Fool Australia.

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