Author: therawinformant

Earlier today I looked at the small cap side of the market. You can read about that here.

If small caps are too high risk for your liking, then you might want to take a look at the mid cap shares listed below.

Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is a recently listed online retailer which sells third-party beauty and personal care products. It currently boasts over 590,000 Active Customers across the ANZ region on its platform. From these customers, the company is expecting to generate revenue of $158.2 million in 2020. This will be an impressive 76% increase on the prior corresponding period.

While this might sound like a big number, it is still only a small slice of the overall market. The company notes that Frost & Sullivan estimates that the ANZ beauty and personal care products market was worth $10.9 billion in 2019. Management is aiming to grow its market share in the coming years and intends to use the proceeds from its IPO to support its ambitions.

One broker that is positive on its prospects is Morgan Stanley. It recently put an overweight rating and $8.35 price target on the company’s shares. This compares to the current Adore Beauty share price of $6.50. It believes the company will benefit from the shift to online shopping, which is accelerating because of the pandemic.

Nanosonics Ltd (ASX: NAN)

Nanosonics is the infection prevention company responsible for the industry leading trophon EPR disinfection system for ultrasound probes. While the company’s growth was stifled by the pandemic, it has recently revealed an uptick in its performance. It advised that its trophon installed base was up 16% globally during the first four months of FY 2021.

Analysts at UBS believe the company is well-positioned for long term to growth thanks to the growing importance of infection prevention following the COVID-19 pandemic. It considers Nanosonics as a high-quality and structural growth story and has placed a buy rating and $7.20 price target on its shares. The Nanosonics share price is trading at $6.66 on Monday.

More reading

• 10 fantastic ASX shares to buy in December
• Fund managers have been buying Galaxy Resources (ASX:GXY) and this ASX share
• Why the Nanosonics (ASX:NAN) share price is charging higher
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 next week

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited. 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 2 quality mid cap ASX shares to buy in December appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36p94rT

The Magellan Financial Group Ltd (ASX: MFG) share price slipped today on the appointment of a new non-executive director. At the time of writing, the Magellan share price is down 2.5% to $59.45. In comparison, the S&P/ASX 200 Index (ASX: XJO) is also down 1.3% at 6,517 points.

What is driving the Magellan share price?

The Magellan share price fell after management announced that Colette Garnsey would take the role as non-executive director, effective immediately. Ms Garnsey will join her colleagues in the Magellan audit and risk committee, and the remuneration and nominations committee.

Ms Garnsey has more than 40 years of experience in retail, marketing and distribution, and holds executive MBA from the Graduate School of Business at Stanford University.

Her current notable appointments include serving as chair of Australian Wool Innovation Limited, and the R&D and marketing organisation for the Australian wool industry. In addition, she is a non-executive director of Flight Centre Travel Group Ltd (ASX: FLT) and Seven West Media Ltd (ASX: SWM). Both of the latter positions were appointed in February and December 2018, respectively.

Previous senior roles involve David Jones, Pacific Brands, and Premier Investments Limited (ASX: PMV). Furthermore, Ms Garnsey held directorial and advisory positions for an array of government boards and not-for-profit organisations. Some of these roles include CSIRO, the Australian Government Innovation Council, federal trade and investment ministers, and Australian Fashion Week.

In 2012, Ms Garnsey was awarded as a Member of the Order of Australia for services to business and professional organisations.

What did management say?

Magellan chair Hamish Douglass congratulated Ms Garnsey on her new role, saying:

We are delighted that Colette has agreed to join Magellan. She is extremely accomplished and well respected. Her established experience in a wide range of executive and advisory roles will bring a fresh perspective to the board as Magellan continues to grow and evolve.

Ms Garnsey said she was very pleased to be joining Magellan and looked forward to working with the Magellan board “as the company continues to grow from strength to strength”.

About the Magellan share price

After reaching an all-time high of $74.91 in February, the Magellan share price plummeted to a multi-year low of $30.10 in March. Magellan shares have stagnated somewhat since the start of June, sitting at around $59.00. 

The company has a market capitalisation of $10.9 billion and a price-to-earnings (P/E) ratio of 27.2.

More reading

• ASX 200 drops on Monday
• What Australia’s recovery from the COVID recession means for the Santa Rally
• ASX 200 drops 0.5%: Treasury Wine sinks, Zip flat after AGM update, Bega Cheese rises
• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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 Why the Magellan (ASX:MFG) share price dipped lower today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/37qc2vw

The WPP Aunz Ltd (ASX: WPP) share price surged to its highest level since the COVID‐19 market meltdown after it became the latest ASX stock to be in the merger and acquisition (M&A) spotlight.

The WPP share price jumped a whopping 35.4% to 56 cents on Monday on news that its largest shareholder made an unsolicited offer to acquire the media buying group.

But with the WPP share price trading above the offer price of 55 cents, investors shouldn’t think that a higher competing bid is forthcoming.

Bidding war for WPP share price not likely

This is usually the case if a target’s share price trades above the offer price. But with UK-based WPP Plc holding 61.5% of the ASX stock, I doubt another suitor will launch a challenge.

The fact that the APP Aunz share price closed north of the offer is probably due to its franking balance that stands close to $150 million, reported the Australian Financial Review.

Franking credits worth a lot

WPP Plc suggested that it would allow the ASX business to pay a full franked special dividend as part of the takeover. The offer price will be lowered by the cash dividend amount.

The franking top-up is significant as it’s theoretically worth 17 cents per share if WPP Aunz can distribute it all.

Takeover premium for WPP share price

The offer price represents a 34.1% premium to WPP Aunz’s last closing price before the takeover proposal was announced. It also represents a 36.3% premium to the ASX stock’s 30-day volume weighted average price (VWAP).

The bidder said it has more than sufficient cash to fund the takeover as it holds £2.9 billion ($5.2 billion) in cash and cash equivalents.

Apparently, WPP Plc is reluctant to use any of its cash pile to help the local arm overcome the COVID uncertainties under the current ownership structure.

Opportunistic M&A bids abound

The deal is far from being fait accompli. WPP Aunz’s independent directors are considering the offer and is urging investors to sit tight.

The takeover bid looks opportunistic in my view when economic conditions are recovering. The Australian and New Zealand economies are the envy of the world as the countries have contained COVID much better than others.

But opportunistic bids during a crisis are the rule, not exception; and WPP Aunz joins a growing list of companies that are under the M&A spotlight.

Some recent examples include the Coca-Cola Amatil Ltd (ASX: CCL) share price, BlueScope Steel Limited (ASX: BSL) share price, AMP Limited (ASX: AMP) share price and Tabcorp Holdings Limited (ASX: TAH) share price.

More reading

• ASX stock of the day: WPP Aunz (ASX:WPP) shares surge 30%
• Wilson Asset Management thinks these 2 ASX shares are a buy
• Can these fund managers drive the Coca-Cola Amatil (ASX:CCL) share price 10% higher?
• Why BlueScope, Home Consortium, IAG, & Kogan shares are dropping lower
• BlueScope (ASX:BSL) share price on watch as takeover rumours swirl

Motley Fool contributor Brendon Lau owns shares of AMP Limited and BlueScope Steel Limited. Connect with me on Twitter @brenlau.

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 Meet the latest ASX stock to come under the takeover spotlight appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36mxHFA

The S&P/ASX 200 Index (ASX: XJO) fell by 1.26% to 6,518 points.

Here are some of the main highlights from the ASX:

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine Estates share price fell by around 7% today after providing an update in relation to the Chinese move to essentially put tariffs on its products. It was one of the worst performers in the ASX 200. 

Treasury Wine Estates said that a deposit rate of 169.3% will be applied to the imported value of the company’s wine in containers of two-litres or less.

The ASX 200 share expects that whilst the Chinese measure is in place, demand for its portfolio in China will be extremely limited.

The company said it has continued to developed a detailed response plan, which will commence immediately. Benefits are likely to be limited in FY21, but it will progressively reach the full potential over a two to three year period. The initiatives aim to reduce the impact on earnings and maintain the long-term diversification and strength of its business model and brands.

Treasury Wine Estates plans to reallocate some of its wine from China and grow in other Asian markets outside of China, Australia, the US and Europe. It will invest in sales, marketing and capability across these other luxury growth markets to increase demand and grow the distribution of Penfolds.

Its luxury grapes will be used for other premium Australian portfolio brands including Wynns, Wolf Blass, Seppelt and Pepperjack.

The company also plans to lower its costs, lower its future vintange intake plans and accelerate its multi-country of origin portfolio growth strategy with a focus on growing sourcing for its portfolio from its existing asset base in France and potentially from China.

For Treasury Wine Estates, China represented approximately two-thirds of the total Asia region earnings, or 30% of its total earnings.

The CEO of Treasury Wine Estates, Tim Ford, said: “We are extremely disappointed to find our business, our partners’ businesses and the Australian wine industry in this position.

“We will continue to engage with MOFCOM as the investigation proceeds to ensure our position is understood. We call for strong leadership from governments to find a pathway forward.”

Select Harvests Limited (ASX: SHV) result

Nut business Select Harvests announced its FY20 report today.

Its almond volume increased by 2.5% to 23,250MT. However, the price per kilo fell by 12.8% to $7.50 per kilo. This caused the total revenue to drop by 16.8% to $248.3 million.

Select Harvests’ earnings before interest, tax, depreciation and amortisation (EBITDA) sank 39.3% to $57.8 million because of lower global almond pricing and higher water costs. Total earnings before interest and tax (EBIT) dropped 51.6% to $38.7 million. Net profit after tax (NPAT) dropped 52.8% to $25 million. Operating cash flow was $13.2 million with the timing of cash flows impacted by COVID-19.

Part of the decline of profit was because of very high water prices due to the drought. Annual water costs went up $8.7 million to $21.5 million.

However, the company pointed to the fact that global demand is responding to historically low almond prices, with record US monthly shipments to key world markets.

The start of the 2020/2021 water season has seen better weather conditions and a movement of water prices back towards long-term averages.

Select Harvests managing director and CEO Paul Thompson said: “Tree health and the crop outlook remain positive, with good pollination and growing conditions to date, however it is too early in the horticulture cycle to be able to confidently forecast the 2021 crop at this stage. We will continue delivering a full horticultural program to maximise yield.”

The Select Harvests share price fell by around 5% today. 

More reading

• Leading brokers name 3 ASX shares to buy today
• Why Kathmandu, Resolute, Select Harvests, & Treasury Wine Estates are dropping lower
• What Australia’s recovery from the COVID recession means for the Santa Rally
• ASX 200 drops 0.5%: Treasury Wine sinks, Zip flat after AGM update, Bega Cheese rises
• The Select Harvests (ASX:SHV) share price is sinking 6% lower today. Here’s why.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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 ASX 200 drops on Monday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3fW02pm

The Bank of Queensland Limited (ASX: BOQ) today announced the completion of its Capital Notes 2 offer. This has raised $260 million through the issue of 2.6 million Capital Notes 2 for $100 each. At the time of writing, the BOQ share price has fallen by 3.02% to $7.72, amid a broader fall in banking shares on the ASX today.

More about the bank’s Capital Notes 2 

The bank says strong investor demand saw the size of the offer increased from $250 million to $260 million. The note was priced at 3.8% above the benchmark BBSW (bank bill swap rate) paid quarterly, and the first payment in February 2021 has been fixed at 3.82%.

BOQ did not issue a statement today about the capital’s usage but in general, banks may issue capital notes to cover short-term financing – such as meeting minimum regulatory capital requirements under Basel Accords. Bank capital notes have no fixed maturity date, and are usually unsecured and subordinated.

The Capital Notes 2 are expected to begin trading on the ASX at approximately 10am Sydney time on 1 December 2020 under the ASX code “BOQPF”.

Quick take on Bank of Queensland

BOQ is smaller than its regional bank rival, the Bendigo and Adelaide Bank Ltd (ASX: BEN), and is considerably smaller than the four major banks.

After the recent CEO appointment of former Westpac Banking Corp (ASX: WBC) executive George Frazis, the bank said its strategic plan would centre on a digital transformation of its core banking offerings. It hopes this will lead to better operational cost efficiencies. The regional banks, including BOQ, usually struggle to compete with the four major banks on price, primarily because of higher wholesale funding and operational costs due to their lack of scale.

In October, the BOQ reported that its full-year 2020 cash profit fell 30% to $225 million. The drop was largely attributable to a $101 million rise in loan impairment expenses to $175 million. Statutory profit was reported at $115 million, reflecting amortisation of intangibles and restructuring. 

At that time, the bank also said that in 2021, it expects net interest margins (NIM) to fall by between 2 and 4 basis points, highlighting the cost cutting efforts made recently. It also said that 12% of its home loan book and 16% of its SME loan book were in deferral as at 31 August 2020, as the COVID-19 pandemic affected its customers’ ability to keep up with loan repayments. 

About the BOQ share price

The BOQ share price has gained 6% in 2020, and is now closing in on its 52-week high of $8.00. The bank’s share dropped to a 52-week low of $4.51 in May. The BOQ currently commands a market cap of $3.6 billion. 

More reading

• Here’s when your ASX bank dividends are being paid in December
• Why the banks are back in the ASX 200 spotlight
• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• Is the Westpac (ASX:WBC) share price a buy?
• Which of these ASX bank shares offers the highest dividend?

Motley Fool contributor Eddy Sunarto 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 Bank of Queensland (ASX:BOQ) issues Capital Notes 2 as bank shares fall appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ocE3xj

If you haven’t heard much about Freedom Foods Group Ltd (ASX: FNP) in a while, it’s no surprise. Freedom shares have been stuck in ASX purgatory – i.e. a share trading halt – since 24 June. That’s more than 5 months ago.

Freedom shares initially had a strong 2020, rising to $5.68 in April on the back of strong demand for its products. This was amidst the panic hoarding we saw in supermarkets back in March and April. But the shares last traded for just $3.01 before the trading halt came into place.

Freedom Foods was placed in a halt due to some serious developments at the company over the first half of the year. Firstly, Freedom was forced to write down around ~$60 million on its balance sheet due to shonky auditing of its food stockpiles. Somehow, it was missed that piles of Freedom Foods foodstuffs have gone off or were out of date.

It also revealed that it would need to further provision bad debts, which was reported at the time to likely result in another $10 million in write-downs.

Then, both its chief executive officer and chief financial officer announced they would be stepping down from the company. That came just a few days after the CEO, Rory McLeod, announced he would be going ‘on leave’.

If you’re searching for a word for this whole cacophony of news, ‘debacle’ would probably fit nicely. Mr McLeod left the company and was replaced by Michael Perich. The Perich family reportedly controls 52.5% of Freedom Foods’ equity through a private company.

Freedom isn’t free

But that was all months ago. So what’s new from Freedom Foods? Reporting in the Australian Financial Review (AFR) today tells us that the company is likely to remain in a suspension for “several more weeks”. This is reportedly due to Freedom finalising a convertible notes deal with Oaktree Capital Management – a US-based firm. According to the report, Freedom is seeking a $200 million capital injection.

The AFR also reports that Freedom is “believed to be seeking” a sale of its non-core cereals, snack and canned seafood business as part of a restructure. It will instead focus on the “dairy/nutritionals” as well as  “plant-based businesses”, which the AFR tells us are worth 50% and 44% of the group’s earnings base respectively. The AFR says that Freedom’s muesli division alone could fetch between $30 million and $50 million, including the sale of its Leeton factory.

It will be interesting to see how the Freedom Foods share price emerges.

More reading

• Here’s when your ASX bank dividends are being paid in December
• Why the banks are back in the ASX 200 spotlight
• Leading brokers name 3 ASX shares to buy today
• Why the Dimerix (ASX:DXB) share price is surging 6% higher today
• Why the Bega Cheese (ASX:BGA) share price is rising again today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group Limited. 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 Freedom Foods (ASX:FNP) prepares for return to trading appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Jp2PLq

Next month certainly is a big one for dividends, with billions due to be paid out to Australian bank shareholders.

Here’s what you should be expecting from your bank in December and then again in FY 2021:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

ANZ shareholders can look forward to the bank paying them a 35 cents per share fully franked dividend on 16 December.

Looking ahead, according to a note out of Morgan Stanley, it is expecting ANZ to pay a 95 cents per share dividend in FY 2021. Based on the current ANZ share price, this represents a 4.2% dividend yield.

Macquarie Group Ltd (ASX: MQG)

This leading investment bank is paying its shareholders a partially franked 135 cents per share dividend on 22 December

After which, analysts at Ord Minnett are forecasting a 385 cents per share dividend over the next 12 months. Based on the latest Macquarie share price, this implies a forward 2.75% dividend yield.

National Australia Bank Ltd (ASX: NAB)

On 10 December NAB will be paying its shareholders a fully franked 30 cents per share dividend.

The bank’s dividend is expected to grow to $1.00 per share in FY 2021 according to analysts at Ord Minnett. Based on the current NAB share price, this will mean a fully franked 4.3% yield.

Westpac Banking Corp (ASX: WBC)

Westpac is paying its shareholders a 31 cents per share fully franked dividend on 18 December.

Next year Australia’s oldest bank is forecast by Morgan Stanley to pay a fully franked 90 cents per share dividend. With the Westpac share price currently fetching $20.23, this represents a 4.4% dividend yield.

What about CBA?

Wondering where the Commonwealth Bank of Australia (ASX: CBA) dividend is? Australia’s largest bank operates on a different financial calendar to the other banks. As a result, it pays its dividends in March and September.

Looking ahead, Ord Minnett is expecting a 270 cents per share dividend in FY 2021. Based on the current CBA share price, this will be a 3.4% dividend yield.

More reading

• Why the banks are back in the ASX 200 spotlight
• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• Is the Westpac (ASX:WBC) share price a buy?
• The NAB (ASX:NAB) share price is up 25% in November
• The Telstra (ASX:TLS) dividend yield is 8 times greater than term deposits

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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 Here’s when your ASX bank dividends are being paid in December appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36i7vMc

Australia’s big four banks haven’t exactly had the best of runs lately.

To refresh your memory, we’re talking about the multi-billion-dollar market leaders here: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and National Australia Bank Ltd (ASX: NAB).

Between royal commissions, plummeting interest rates and an economy-stalling global pandemic – to name just a few issues – it would seem they just can’t catch a break.

Indeed, the share prices of all 4 of the big four are still well down in 2020. Worse still, if you’d bought shares in any of the big four banks 5 years ago, in November 2015, every one of them would currently be trading at a lower share price. (Note, we’re not talking total returns here, as we’re not taking dividend payments into account.)

The NAB share price, for example, is down 19% over 5 years. The CBA share price is down a more muted 1%.

To put that in some perspective, over that same 5 years, the S&P/ASX 200 Index (ASX: XJO) is up 27%.

The tide could be turning for Australia’s banks

Like most every ASX share, the banks were savaged during the wider COVID-driven market panic in late February and March. But they’ve defied a lot of gloom and doom forecasts to come back strongly.

Since the 23 March low, the CBA share price is up 46%. That leaves shares only 0.5% down since 2 January.

NAB’s share price is up 66% from 23 March. Though NAB shares remain down 6% so far in 2020.

The past month has been particularly promising for shareholders in the big banks. NAB’s shares are up 24% and CBA’s have gained 15%, both outpacing the 11% gain posted by the ASX 200.

And there could be more good news to come.

Party like it’s 1976!

According to the Australian Financial Review, growth among Australia big four banks in the September quarter is forecast to be between 3% to 4.1%. The last time the banks posted that kind of growth?

1976.

Earlier this month, Morgan Stanley (NYSE: MS) analyst Richard Wiles wrote:

For the Australian banks, tail risks have decreased given highly supportive fiscal and monetary policy, the end of the Victorian lockdown, an improving outlook for the housing market, and recent progress on a COVID-19 vaccine.

UBS Group (NYSE: UBS) analyst Jon Mott, quoted by the AFR, is also cautiously optimistic, saying:

While the banks are no longer cheap in absolute terms, we remain positive for the cyclical recovery. However, we are very conscious of the structural headwinds to revenue and pre-provision profits from sustained near-zero rates.

The banks’ CEO’s have joined in the optimism that Australia’s economic outlook for 2021 now is much better than what most analysts had forecast just a few months ago.

CBA’s chief executive, Matt Comyn, speaking to the Australian Financial Review Banking & Wealth Summit on 18 November, said:

The speed of their recovery has been faster than we’d anticipated and a lot better than we’d feared, and we’re increasingly optimistic. To give you an example, we were previously forecasting, I think, 2.75 per cent GDP growth in calendar 2021 – that’s now at 4.5 per cent. I think where we have an even more optimistic view is on unemployment, I think the RBA had 6.5 per cent by the end of next calendar year, and we’re at 5.75 per cent.

NAB’s chief executive officer, Ross McEwan, added:

Shoe sales went up 1600 per cent in the first week [after lockdown]. It’s like everyone went out and bought a pair of shoes. We’re now expecting the Australian economy to get back to pre-COVID levels by late 2021, much earlier than we originally thought. There are still a number of big issues to manage, but overall the current picture better reflects the best-case scenario we presented at our recent financial results.

In a research report released by investment manager Ausbil earlier today, Paul Xiradis, Ausbil’s chief investment officer, labels the banks “one of the best risk-adjusted opportunities” to take advantage of Australia’s resurging economy:

As the economy builds strength, and companies complete their repositioning for a changed world and earnings growth returns, we believe one of the best risk-adjusted opportunities for leverage to a resurging economy is in the banks. Banks are still trading well below their long-term multiples, have experienced less delinquency and bad debts than first thought, and are all well-capitalised.

With leniency recently expressed by APRA in terms of dividends, we expect a resurging banking sector to return to paying more normalised dividends on the back of a resurging economy in 2021.

Although shares in all the big four banks are down today, along with the wider ASX 200, the better than expected economic news offers renewed hope for the year ahead.

More reading

• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• Is the Westpac (ASX:WBC) share price a buy?
• The NAB (ASX:NAB) share price is up 25% in November
• The Telstra (ASX:TLS) dividend yield is 8 times greater than term deposits
• Is the CBA (ASX:CBA) share price overvalued?

Motley Fool contributor Bernd Struben 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 Why the banks are back in the ASX 200 spotlight appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3qftn2u

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Aventus Group (ASX: AVN)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and $2.76 price target on this retail park operator’s shares. This follows a tour of the company’s recently completed Caringbah Super Centre development. The broker notes that the centre is performing above expectations in respect to returns and tenant sales. Goldman believes this development demonstrates the opportunities the company has in adjoining vacant land. Something which it believes could be a key driver of growth in the future. Another positive, the broker points out, is that Aventus’ shares offer a forward 6.1% dividend yield according to its forecasts. The Aventus share price is fetching $2.72 this afternoon.

Karoon Energy Ltd (ASX: KAR)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted the price target on this energy producer’s shares to $1.40. Although the company’s shares have rocketed higher since the renegotiation of the terms of its Bauna acquisition, it still sees plenty of upside ahead. Particularly given its promising Neon and Goia oil fields in Brazil. The Karoon Energy share price is trading at $1.01 on Monday.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Morgan Stanley have retained their overweight rating and $11.00 price target on this wine company’s shares. This is despite China placing material tariffs on the company’s exports in response to dumping allegations. Although it sees limited options for the company to continue exporting to China through normal channels and expects this to have a big impact on its sales, it isn’t enough for a change of rating just yet. Morgan Stanley appears to still see value in its shares at the current level. The Treasury Wine share price is trading at $8.65 today.

More reading

• Why Kathmandu, Resolute, Select Harvests, & Treasury Wine Estates are dropping lower
• ASX 200 drops 0.5%: Treasury Wine sinks, Zip flat after AGM update, Bega Cheese rises
• Treasury Wine (ASX:TWE) share price sinks 12% after responding to China export tariff
• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• 3 ASX dividend shares with 5%+ yields to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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 Leading brokers name 3 ASX shares to buy today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/39rzACM

The Dimerix Ltd (ASX: DXB) share price lifted higher today after the company announced the start of its second clinical study on lead drug candidate, DMX-200. At the time of writing, the Dimerix share price is up 6.1% at 26 cents.

What’s driving the Dimerix share price?

The Dimerix share price is storming higher following the announcement of its international study into COVID-19 patients. Led by Professor Meg Jardine at the University of Sydney Australia, the clinical trial will collaborate with Professor Vivek Jha and The George Institute for Global Health, in India.

DMX-200 was chosen for a partner study of the controlled evaluation of angiotensin receptor blockers for COVID-19 respiratory disease (Clarity) study. The Clarity 2.0 will seek to monitor the treatment of DMX-200 in COVID-19 patients who are admitted to hospital.

The phase 3, Clarity 2.0 study will assess roughly 600 patients in India who have tested positive for coronavirus, using DMX-200 together with an angiotensin receptor blocker. The randomised, double blind, controlled study will use the World Health Organisation’s (WHO) 7-point health score. At the 14-day treatment day mark, Dimerix will record the primary endpoint results. Recruits in the study will be administered the drug for a period of up to 28 days and followed up for a total of 6 months.

The DMX-200 aims to reduce damage from inflammatory immune cells by blocking signals and limiting movement predominately in the lungs. When infected with COVID-19, patients usually suffer from breathing complications, prior to the onset of acute respiratory distress syndrome.

What did management say?

Commenting on the potential applications of DMX-200, Professor Meg Jardine said:

We generally see that people with chronic health conditions that include inflammatory drivers, such as chronic kidney disease, diabetes, cardiovascular disease and obesity, are also those who are more vulnerable to respiratory complications if they contract the SARS-CoV2 virus. Some of those inflammatory drivers interact with the blood pressure system which is why some common blood pressure medications may improve outcomes in COVID-19 disease.

Early results suggest that DMX-200 may have stronger anti-inflammatory effects when used in combination with these blood pressure medications. The Clarity and Clarity 2.0 studies are designed to answer whether these blood pressure medications, used alone or in combination with DMX-200, may alter the course of COVID-19 disease and provide a better outcome for patients.

Dimerix CEO and managing director Dr Nina Webster added:

Our lead candidate, DMX-200, has demonstrated efficacy across three different studies in patients with active inflammatory disease, and we are very pleased to support a second research study in COVID-19 patients as well as progressing DMX-200 into a Phase 3 clinical study in the rare kidney disease Focal Segmental Glomerulosclerosis (FSGS) in the first half of 2021.

About the Dimerix share price

The Dimerix share price hit an all-time high of 78 cents in September, but is still a long way off that level despite today’s rise. Sitting at 26 cents, the Dimerix share price is up 100% since the beginning of the year.

More reading

• Why the Bega Cheese (ASX:BGA) share price is rising again today
• Impedimed (ASX: IPD) share price up 6% on study results
• 3 ASX dividend shares to buy in December
• Why the holidays are looking up for Sydney Airport (ASX:SYD) shares
• Stock market crash: I’d drip-feed money into cheap shares to make a million

Motley Fool contributor Aaron Teboneras 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 Why the Dimerix (ASX:DXB) share price is surging 6% higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33qCZ0G