Category: Stock Market

There a number of qualities that make Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) such a strong contender as a leading ASX dividend share.

For readers that don’t know, Soul Pattinson is an investment conglomerate that listed in 1903 and started off as a pharmacy business.

Soul Pattinson recently divested its long-term holding of the pharmacy business Australian Pharmaceutical Industries Ltd (ASX: API).

Here are three qualities that make the Soul Pattinson dividend so good:

Dividend records and intentions

Soul Pattinson can claim to be the only business in the S&P/ASX 200 Index (ASX: XJO) that has grown its dividend every year since 2000.

That means it is one of the few ASX 200 shares that have grown the dividend through both the GFC and COVID-19.

Some investors may value the income reliability that this ASX dividend share has been able to provide for two decades and counting.

Indeed, Soul Pattinson’s leadership has stated their thoughts on the dividend. The Soul Pattinson chair said:

Our goal at WHSP is to pay consistent and growing dividends to shareholders and increase their capital wealth over the long term. These factors together are measured by total shareholder return (TSR).

It has actually paid a dividend every year since it listed in 1903.

Diversified investment income sources

Due to the nature of the Soul Pattinson portfolio, its investment income comes from a variety of industries and sources.

It is not reliant on a specific commodity price or just a mortgage loan book to fund its ongoing dividends.

Some of the larger ASX shares in the portfolio includes TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC) and Pengana Capital Ltd (ASX: PCG).

It also has a number of private investments in areas like agriculture, swimming schools, luxury retirement living and resources.

Dividend is fully funded by annual cashflow

The company gets its investment income from its portfolio of assets.

These businesses and assets pay annual dividends, distributions and interest to the ASX dividend share.

With that cashflow, it can fund its growing dividend to shareholders from the that net cashflow after paying for expenses. In FY21, Soul Pattinson paid 82.3% of its annual cashflow out as a dividend. That means it kept the rest which it can re-invest back into more opportunities for the long-term.

What is the current yield?

Assuming that Soul Pattinson pays an annual dividend of $0.64 per share in FY22, the current grossed-up dividend yield for the next 12 months is 3.1%.

The post 3 qualities that makes Soul Pattinson (ASX:SOL) a strong ASX dividend share appeared first on The Motley Fool Australia.

More reading

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• The ASX share market coverage that captivated readers in 2021
• 2 ASX dividend shares that could provide steady income in retirement
• Are these 2 leading ASX 200 shares worth buying?
• Soul Pattinson (ASX:SOL) share price dips as investors digest AGM

Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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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With 2021 now officially behind us (at long last!), we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in January. And, in case you missed it, don’t forget to also check out our coverage of which stocks those in the know are predicting will do great things in 2022.

James Mickleboro: Westpac Banking Corp (ASX: WBC)

This banking giant could be a top option for investors in January after a significant share-price pullback over the previous two months. That decline has been driven by the release of Westpac’s full-year results, which revealed a much weaker than expected margin outlook due largely to aggressive home loan competition. In addition to this, doubts over the bank’s cost cutting plans have weighed heavily on investor sentiment.

However, the team at Morgans is confident in Westpac’s ability to cut its cost base down to $8 billion by FY 2024. In light of this, the broker sees a lot of value in the shares of Australia’s oldest bank at the current level and has put an ‘add’ rating and $29.50 price target on them. Based on the Westpac share price of $21.35 at Friday’s close, this implies potential upside of around 38%.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corp.

Aaron Teboneras: Washington H. Soul Pattinson & Co. Ltd (ASX: SOL)

Listed for more than 108 years, Soul Patts (as it’s commonly referred to) is the second-oldest company on the ASX. The Australian investment house has a $9.5 billion portfolio of ASX shares in industries such as natural resources, building materials, telecommunications, retail, agriculture, property equity, investments, and corporate advisory.

Major share holdings include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), and New Hope Corporation Limited (ASX: NHC).

Soul Patts’ broad asset diversification has helped it ride out economic crises in the past. The company has rewarded shareholders with dividends for the last 40 years and has increased its dividend payments every year since 2000.

At market close on Friday, the Soul Patts share price was trading at $29.97.

Motley Fool contributor Aaron Teboneras does not own shares in Washington H. Soul Pattinson & Co. Ltd.

Sebastian Bowen: Dusk Group Ltd (ASX: DSK)

Dusk could be a small-cap ASX share to check out this month. The company is in the business of selling candles, oils, fragrances, and other homely accessories, which it has been selling in record volumes over the past year. Dusk also recently announced the acquisition of Eroma, which has the potential to boost its online business.

Shareholders will be watching with interest as to whether the company can successfully execute on its growth plans for 2022. As it stands today, Dusk is also offering a fully franked dividend yield of more than 6% to keep investors company while they wait. The Dusk share priced closed at $3.17 on Friday.

Motley Fool contributor Sebastian Bowen owns shares of Dusk Group Ltd.

Mitchell Lawler: Kogan.com Ltd (ASX: KGN)

The e-commerce company has suffered a brutal selloff over the past 12 months following inventory management issues.

Due to excessive inventory levels, Kogan has been incurring higher costs associated with housing the physical goods. However, investors are hopeful that a good Christmas and Boxing Day shopping period will have leaned out the company’s inventory.

Additionally, the founder-led business is now aspiring to achieve more than $3 billion in annual gross sales by FY2026. This ambitious goal would require Kogan to grow gross sales by 20% at a compound annual rate.

Credit Suisse holds a price target of $13.88 on Kogan shares. This represents potential upside of around 56.4% based on the Kogan share price of $8.87 at Friday’s close.

Motley Fool contributor Mitchell Lawler own shares of Kogan.com Ltd.

Tristan Harrison: Adairs Ltd (ASX: ADH)

Adairs is a leading homewares and furniture retailer.

The company recently acquired Focus on Furniture, which offers growth potential across both store rollouts and e-commerce. The acquisition is expected to boost earnings per share (EPS) by double digits in FY23.

Adairs plans to open more larger stores, which are substantially more profitable than its smaller ones. The business also continues to grow its online sales, which come with high profit margins.

According to Commsec, Adairs shares are valued at 9x FY23’s estimated earnings with a projected grossed-up dividend yield of around 11%. The Adairs share price was $4.01 at the close of trade on Friday.

Motley Fool contributor Tristan Harrison does not own shares of Adairs Ltd.

Zach Bristow: Immutep Ltd (ASX: IMM)

Immutep is a global biotech company focused on the development of products for the treatment of cancer and autoimmune diseases. Immutep has a number of products in its pipeline, including lead product candidate, ‘efti’ or ‘IMP321’. Efti has been developed around a particular cell activator currently being explored in cancer and infectious disease research.

Analysts at Wilsons note that the ‘LAG-3’ protein technology that Immutep is focused on has dramatically changed how we treat cancer, as well as the outlook for patients with the disease. Wilsons reckons that LAG-3 could see its first drug approval in 2022 – a potentially significant catalyst for Immutep.

Additionally, Jefferies recently initiated coverage on Immutep shares with a ‘buy’ recommendation and $1 per share valuation. At Friday’s close, the Immutep share price was sitting at 49 cents apiece.

Motley Fool contributor Zach Bristow does not own shares of Immutep Ltd.

Brendon Lau: Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel share price could outperform this month, despite Omicron uncertainty, after Morgan Stanley recently reiterated its ‘overweight’ recommendation. The broker thinks there is more upside after Corporate Travel lobbed a bid for Helloworld Travel Ltd (ASX: HLO) for around $175 million.

Morgan Stanley noted that Corporate Travel’s Australia and New Zealand business peaked in the 2019 calendar year (CY19). Adding Hello World’s CY19 total transaction value of around $1.1 billion provides meaningful change in scale. The broker’s 12-month price target on Corporate Travel shares is $23.50. The travel operator’s shares closed Friday’s session at $22.01.

Motley Fool contributor Brendon Lau does not own shares of Corporate Travel Management Ltd.

The post Top ASX shares to buy in January 2022 appeared first on The Motley Fool Australia.

More reading

• These ASX mining, tech, and bank shares could be buys in 2022
• ASX 200 falls on Friday but records 13% gain in 2021
• Morgans names 2 blue chip ASX 200 shares to buy
• Is the Westpac (ASX:WBC) share price a buy for dividends?
• How has the Westpac (ASX:WBC) share price performed in December?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO, Brickworks, Helloworld Limited, and Kogan.com ltd. The Motley Fool Australia owns and has recommended ADAIRS FPO, Brickworks, Helloworld Limited, Kogan.com ltd, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Dusk Group Limited, TPG Telecom Limited, and Westpac Banking Corporation. 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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The Australian share market is home to a number of companies across various sectors.

Listed below are three ASX shares from very different sectors that have been named as buys for 2022. Here’s what you need to know about them:

Allkem Ltd (ASX: AKE)

The first ASX share to buy in 2022 is Allkem. It is the result of the merger of Galaxy Resources with Orocobre earlier this year, which created a top five global lithium mining company. Thanks to its world class operations in Argentina and Western Australia, Allkem is benefiting greatly from sky high lithium prices. And with the team at Macquarie expecting prices to remain at record highs for the next four years, it looks well-placed for growth as its production ramps up. Macquarie currently has an outperform rating and $13.60 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another ASX share that has been tipped as a buy is Westpac. While this banking giant’s near term outlook is undoubtedly softer than previously anticipated, the team at Morgans believe it is worth sticking with the company. The broker also believes recent weakness in the Westpac share price has left it trading at a very attractive level. As a result, Westpac is Morgans top pick among the big four right now. The broker has an add rating and $29.50 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX share rated as a buy is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses. The team at Goldman Sachs believe it could be a great option for investors, especially those looking for long term investments. This is due to its belief that Xero is well-placed to deliver strong revenue growth over multiple decades. Goldman expects this to be underpinned by its international expansion, acquisitions, the transition to the cloud, and the monetisation of its app ecosystem. The broker currently has a buy rating and $158.00 price target on its shares.

The post These ASX mining, tech, and bank shares could be buys in 2022 appeared first on The Motley Fool Australia.

More reading

• ASX 200 falls on Friday but records 13% gain in 2021
• Morgans names 2 blue chip ASX 200 shares to buy
• Is the Westpac (ASX:WBC) share price a buy for dividends?
• What’s the outlook for ASX lithium shares in 2022?
• Christmas highs: 3 ASX 200 shares hitting record highs today

Motley Fool contributor James Mickleboro owns Orocobre Limited and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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The S&P/ASX 200 Index (ASX: XJO) has just closed for the final time in 2021 with a disappointing 0.9% decline to 7,444.6 points.

But that can’t take the shine off what has been an incredibly positive 12 months for the benchmark index. Despite today’s setback, the ASX 200 has finished the year with a gain of 13%.

What happened on New Year’s Eve?

The big four banks were major drags on the ASX 200 on Friday. Three of the big four banks recorded declines of over 1%, with the National Australia Bank Ltd (ASX: NAB) share price the worst performer in the group with a fall of 1.6%.

Though, much like the ASX 200, that couldn’t stop the banking sector from recording strong gains in 2021. Only Westpac Banking Corp (ASX: WBC) underperformed the market this year with its gain of 10.2% over the 12 months.

NAB shares were the strongest performers among the big four in 2021 with a gain of almost 28%. The Commonwealth Bank of Australia (ASX: CBA) share price wasn’t far behind with a 23% gain, closely followed by Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price with a gain of 21.2%.

Elsewhere, the Bega Cheese Ltd (ASX: BGA) share price finished the year on a positive note. The diversified food company’s shares rose 3% on Friday, which means it is now up 12% since before the market open on Christmas Eve. News that Andrew Forrest’s Tattarang AgriFood Investments business became a substantial shareholder gave its shares a boost this week.

One area of the market that finished the year in the red was the tech sector. Declines across the sector dragged the S&P ASX All Technology index down 1.1% for the day, reducing its 2021 gain to a disappointing 3.7%.

The Afterpay Ltd (ASX: APT) share price, which managed to squeeze out a small gain on Friday, lost 29% of its value in 2021 despite accepting a takeover offer from Square. Another former market darling, Pointsbet Holdings Ltd (ASX: PBH), fared even worse. After falling almost 1% on Friday, the sports betting company’s shares recorded an annual decline of 39%.

But it wasn’t the worst performer on the ASX 200 in 2021. That unwanted honour goes jointly to Magellan Financial Group Ltd (ASX: MFG) and Polynovo Ltd (ASX: PNV) with their 60.5% declines over the 12 months.

Lithium miner Pilbara Minerals Ltd (ASX: PLS) takes the best performer crown with a gain of 268% for the year.

Roll on 2022!

The post ASX 200 falls on Friday but records 13% gain in 2021 appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to sell
• ASX 200 (ASX:XJO) midday update: Big four banks fall, Bega Cheese jumps again
• Why Bega Cheese, Magnis, Mesoblast, and Neometals shares are pushing higher
• Here’s why the ANZ (ASX:ANZ) share price has climbed in December
• Morgans names 2 blue chip ASX 200 shares to buy

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited and POLYNOVO FPO. The Motley Fool Australia owns and has recommended Afterpay Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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With many brokers taking a well-earned break over the holiday period, new broker notes are extremely limited.

In light of this, listed below are a few recent broker recommendations that are still very relevant today. Here’s are three ASX shares rated as sells:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Macquarie, its analysts have retained their underperform rating and $86.00 price target on this banking giant’s shares. The note reveals that Macquarie has reduced its earnings estimates for the banking giant to reflect aggressive competition for home loans. It notes that this is weighing on margins. Macquarie has also increased its costs forecasts in response to Commonwealth Bank’s recent trading update. The CBA share price is trading at $101.54 this afternoon.

Mineral Resources Limited (ASX: MIN)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $38.70 price target on this mining and mining services company’s shares. The broker isn’t convinced with the company’s plan to investigate the development of a new iron ore export facility in Port Hedland with Hancock Prospecting and Roy Hill. Morgan Stanley appears concerned it could support increased supply and weigh on iron ore prices. The Mineral Resources share price is fetching $56.40 this afternoon.

Virtus Health Ltd (ASX: VRT)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $6.50 price target on this fertility treatment company’s shares. While Morgans Stanley acknowledges that trading conditions have been better than it was expecting this year, it isn’t enough for a more positive recommendation. The broker continues to see Virtus Health’s shares as fully valued at the current level. The Virtus Health share price is trading at $6.78 this afternoon.

The post Brokers name 3 ASX shares to sell appeared first on The Motley Fool Australia.

More reading

• Here’s what this broker thinks of the CBA (ASX:CBA) share price
• ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update
• How does Westpac stack up against the CBA (ASX:CBA) share price?
• Is this ASX sector gearing up for a year of M&A activity?
• ASX 200 (ASX:XJO) midday update: CBA and Westpac rise, Afterpay tumbles again

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 Virtus Health 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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With the majority of brokers across Australia taking a well-earned break, broker notes are few and far between at present.

In light of this, listed below are a few recent broker recommendations that remain very relevant today. Here are three ASX shares rated as buys:

BHP Group Ltd (ASX: BHP)

According to a note out of Macquarie, its analysts have retained their outperform rating and $52.00 price target on this mining giant’s shares. Macquarie highlights that industry data appears to indicate improving demand for iron ore. In addition, the broker notes that BHP remains it top pick among the major miners. It estimates that the company’s shares are trading on a free cash flow yield in the high teens, which bodes well for dividends. The BHP share price is trading at $41.47 this afternoon.

NEXTDC Ltd (ASX: NXT)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $16.10 price target on this data centre operator’s shares. This follows news that NEXTDC has acquired its first edge data centre in Maroochydore on the Sunshine Coast. Macquarie sees a big opportunity in edge data centres, which service regional areas and have the potential to offer greater returns than current centres in capital cities. The NEXTDC share price is fetching $12.86 on Friday afternoon.

Qantas Airways Limited (ASX: QAN)

Analysts at Citi have retained their buy rating but trimmed their price target on this airline operator’s shares to $5.86. Although Qantas’ trading update revealed that it will be posting a big first half loss, Citi remains positive and believes the risk/reward on offer remains attractive. Particularly given how at these levels, the broker thinks the International recovery is not priced into its shares. The Qantas share price is trading at $4.97 today.

The post Brokers name 3 ASX shares to buy appeared first on The Motley Fool Australia.

More reading

• Analysts rate these ASX 200 dividend shares as buys
• Brokers name 3 ASX shares to sell
• 3 fantastic ASX 200 shares to buy in 2022
• 5 things to watch on the ASX 200 on Thursday
• How are ASX 200 travel shares faring over the holiday season?

Motley Fool contributor James Mickleboro owns NEXTDC Limited. 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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The S&P/ASX 200 Index (ASX: XJO) is on course to end a very positive year with a decline. At the time of writing, the benchmark index is down 0.5% to 7,477 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

4DS Memory Ltd (ASX: 4DS)

The 4DS Memory share price is down 10% to 9 cents. This follows the release of a response to an ASX price query following a sharp rise in its semiconductor company’s share price. 4DS revealed that it could not explain the rise, which appears to have deflated whatever optimism drove its shares higher.

Healius Ltd (ASX: HLS)

The Healius share price is down 1.5% to $5.27. This healthcare company’s shares have come under a spot of pressure this week after the government promoted the use of rapid antigen tests. Healius has been a big winner from sky high COVID-19 testing volumes over the last 18 months.

Helloworld Travel Ltd (ASX: HLO)

The Helloworld share price is down over 2% to $2.46 despite there being no news out of the travel company. However, prior to today, its shares were up 13% since the start of December. This could have led to some investors taking a bit of profit off the table on Friday.

Humm Group Ltd (ASX: HUM)

The Humm share price is down 2.5% to 91 cents. This financial services and buy now pay later provider’s shares have come under pressure after Bank of Queensland Limited (ASX: BOQ) quashed speculation that it was looking to acquire it. Earlier this month Humm revealed that it had received a number of takeover enquiries and was willing to engage with these suitors. However, Bank of Queensland doesn’t appear to be one of them.

The post Why 4DS, Healius, Helloworld, and Humm shares are dropping today appeared first on The Motley Fool Australia.

More reading

• 4DS Memory (ASX:4DS) share price plunges 9% amid ASX price query
• Bank of Queensland (ASX:BOQ) hoses down Humm (ASX:HUM) takeover rumours
• Why is the Webjet (ASX:WEB) share price underperforming Helloworld in December?
• Why Afterpay, Healius, IDP Education, and Transurban shares are falling
• Why Anteotech, Bega Cheese, Humm, and Syrah shares are racing higher

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. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Humm Group 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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The Mesoblast Limited (ASX: MSB) share price is heading north today following a positive update regarding its remestemcel-L drug.

At the time of writing, the share price of the allogeneic cellular medicines company is up by 2.94% to $1.40.

However, in earlier trading, the Mesoblast share price reached $1.43, which is 5.1% above yesterday’s close of $1.36.

What did Mesoblast announce?

Investors are snapping up Mesoblast shares after the company provided a regulatory update on the appropriate potency assay on remestemcel-L.

According to the release, the company held discussions with US Food and Drug Administration’s Office of Tissues and Advanced Therapies (OTAT) in response to the received complete response letter (CRL).

As such, Mesoblast requested to explore the potency assay and chemistry, manufacturing and controls (CMC) items for remestemcel-L.

The OTAT advised that the company’s approach to addressing the outstanding CMC items is a reasonable critical quality attribute (CQA). OTAT also noted that the relevance of this activity to clinical outcomes should be established.

Mesoblast stated that it has generated substantial data that it believes meets the proposed in vitro immunomodulatory activity of remestemcel-L. This is demonstrated in its phase III trial in children with steroid-refractory acute graft versus host disease (SR-aGVHD).

The company will present its findings to the OTAT, and address other remaining CRL items as required, for the Biologics License Application resubmission.

What is remestemcel-L?

Mesoblast’s lead drug candidate remestemcel-L is a cellular therapy product. It consists of cultured, cryopreserved mesenchymal stem cells derived from the bone marrow of healthy donors.

Remestemcel-L is being developed to treat steroid-refractory acute graft versus host disease (SR-aGVHD). However, Mesoblast has also been experimenting with remestemcel-L to treat patients infected with COVID-19.

About the Mesoblast share price

Over the past 12 months, Mesoblast shares have plummeted in value, sinking almost 40%.

The Mesoblast share price fell to a 52-week low of $1.31 earlier this month.

At today’s price, Mesoblast has a market capitalisation of $908 million, with approximately 648 million shares on issue.

The post Why the Mesoblast (ASX:MSB) share price is rising 5% today appeared first on The Motley Fool Australia.

More reading

• Why Bega Cheese, Magnis, Mesoblast, and Neometals shares are pushing higher
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• These were the worst performers on the ASX 200 last week
• Mesoblast (ASX:MSB) share price jumps 12% on FDA update

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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The Sonic Healthcare Limited (ASX: SHL) share price is having a bright December, capping off a bumper year.

Shares in the medical diagnostic company are swapping hands at $46.49 at the time of writing, up 8.88% for the month.

Let’s take a look at what might be driving this recent investor confidence in Sonic Healthcare.

A merry December for Sonic Healthcare

The Sonic Healthcare share price has been climbing steadily despite no price-sensitive announcements from the company this month.

It did deliver some positive news on 17 December, though. Sonic Healthcare announced it has acquired ProPath, an anatomical pathology company based in Dallas, Texas in the United States.

ProPath will bring additional annual revenue of about $110 million to Sonic Healthcare, along with 50 pathologist staff. The takeover was part of Sonic’s wider plan to combine anatomical pathology and clinical laboratory testing in the US.

Sonic Healthcare’s soaring share price has coincided with a rise in demand for COVID-19 testing and vaccinations in December.

Sonic Healthcare is Australia’s largest private pathology operator with global operations all over the world, including Germany, Switzerland, the UK, Belgium, New Zealand, and the US.

The company tests thousands of people each day for COVID-19 and is also involved in the Australian vaccination program.

Demand for COVID-19 testing for travel has also been on the rise this month. Sonic offers a COVID-19 PCR test for international travel at a cost of $145 per test per person.

Sonic Healthcare is likely on investors’ minds this month due to surging COVID-19 cases and increased demand for testing.

Federal Health Minister Greg Hunt has announced that the minimum interval between COVID-19 double vaccination and booster shots will be reduced to 4 months from 4 January.

A national cabinet agreement to shift the focus to Rapid Antigen Tests (RAT) and redefine the term ‘close contact’ could impact PCR testing demand.

Sonic Healthcare share price recap

The Sonic Healthcare share price has soared 44% in the past 12 months and has climbed 1.24% in the past week.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 14% in the past year.

The company has a market capitalisation of more than $22 billion based on the current share price.

The post Here’s why the Sonic Healthcare share price (ASX:SHL) is up 9% in December appeared first on The Motley Fool Australia.

More reading

• Sonic (ASX:SHL) share price hits 52-week high amid COVID booster change
• ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise
• Top brokers name 3 ASX shares to buy today
• Experts rate these 2 ASX healthcare shares as buys in 2022
• ASX 200 (ASX:XJO) midday update: BNPL shares sold off, Corporate Travel returns

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 Sonic Healthcare 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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The Global Lithium Resources Ltd (ASX: GL1) share price is surging 6.94% on Friday after the company announced it has completed a new lithium acquisition.

It’s purchased 80% of the Manna lithium project in Western Australia for $33 million.

At the time of writing, the Global Lithium Resources share price is 93 cents. However, that’s lower than it was this morning.

Earlier, the company’s stock was swapping hands for 95 cents apiece. That represents a 9.8% gain and is the highest its been since the company debuted on the ASX in May 2021.

Let’s take a closer look at the latest news from the lithium exploration company.

Global Lithium share price gains on completed acquisition

The Global Lithium Resources share price is in the green on the back of news the company has completed its recently announced acquisition of a majority stake in a second Western Australian lithium project.

The company announced the acquisition on 23 December. Its share price gained 17.4% that same day.

The Manna lithium project is an outcropping pegmatite exploration project. Recent drilling has confirmed a new zone of spodumene-rich pegmatites within its area.

Global Lithium Resources has agreed to pay $33 million to purchase the stake off Breaker Resources NL (ASX: BRB).

Of that, $6.5 million has been paid in cash. Another $6.5 million has been provided by means of new Global Lithium Resources shares.

The other $20 million will be deferred, with $10 million payable upon the announcement of a JORC mineral resource of at least 250,000 tonnes of lithium oxide metal at the project, while the other $10 million is payable when the company produces 100,000 tonnes of lithium oxide from Manna.

Global Lithium Resources chair Warrick Hazeldine commented on the now-finalised acquisition, saying:

Completing the acquisition of the exciting Manna Lithium Project is a fantastic way for the company to close out 2021…

We are looking forward to getting ‘boots on ground’ early in the new year in parallel to commencing our 2022 drilling campaign at the Marble Bar Lithium Project.

Right now, the Global Lithium Resources share price is 233% higher than it was at the start of 2021. It has also gained 50% over the last 30 days.

The post Global Lithium (ASX:GL1) share price hits new 52-week high on acquisition update appeared first on The Motley Fool Australia.

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• Why the Global Lithium (ASX:GL1) share price is surging 12% higher today
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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 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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