Category: Stock Market

The Irongate Group (ASX: IAP) share price is in the red on Wednesday after the company rejected a takeover offer for the third time.  

360 Capital Group Ltd (ASX: TGP) and 360 Capital REIT (ASX: TOT) – together, 360 Capital ­– posed its most recent takeover bid of $1.72 in cash per share in mid-December.

It previously posed bids of $1.65 and $1.70, discounting a 4.5 cent dividend paid to Irongate shareholders in early December.

The market appears disappointed by today’s rejection. At the time of writing, the Irongate share price has dropped 1.46% to trade at $1.69.

Let’s take a look at what’s driving the real estate investment trust’s (REIT) share price down today.

Irongate share price slips on another rejected takeover bid

The Irongate share price is slumping after the trust rejected yet another takeover bid, stating it didn’t “reflect [its] underlying value”.

It said the bid didn’t appreciate its office and industrial real estate portfolio, its portfolio’s value-add upside potential, and the potential of its third-party funds management business.

Finally, the REIT commented if it believed a proposal did reflect maximum value for its shareholders, it would consider it.

Assumedly, that statement lands the ball squarely back in 360 Capital’s court.

Each bid so far has been rejected for the same reason. Additionally, according to Irongate, each bid didn’t come with any changed conditions.

In fact, the company didn’t even announce the second bid to its shareholders. The wannabe acquiree criticised that decision at the time. And perhaps investors are responding now, considering the direction of Irongate shares today.

In response to its second rejection, 360 Capital commented:

360 Capital is disappointed the IAP board has again chosen not to engage with 360 Capital despite the Improved Indicative Proposal representing an attractive premium across a number of valuation metrics…

On top of that, the company’s managing director Tony Pitt noted:

360 Capital remains committed to working with the board and management of Irongate Group for a period of time, but will remain disciplined in its investment approach to assets, particularly given current uncertainties in this rising interest rate environment.

Since 360 Capital pitched its first bid, the Irongate share price has gained 12%. It is also currently nearly 5% higher than it was this time last month.

The post Irongate (ASX:IAP) share price slides as takeover rejected again appeared first on The Motley Fool Australia.

More reading

• Is the Telstra (ASX:TLS) dividend going to grow in 2022?
• Leading brokers name 3 ASX shares to sell today
• How is the Appen (ASX:APX) share price performing so far this year?
• Australasian Metals (ASX:A8G) share price leaps 20% on big lithium news
• 61% spike: This just caused the Pacgold (ASX:PGO) share price to hit new peaks

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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Telstra Corporation Ltd (ASX: TLS) is known as an ASX dividend share. But, after a few years of stagnant payouts, will Telstra increase the dividend in 2022?

The telco has been paying investors a relatively high dividend yield (in relation to the Telstra share price) for many years.

However, the annual Telstra dividend per share of $0.16 is now much lower than it was a few years ago. In 2017, the telco actually paid an annual dividend per share of $0.31 per share.

It has been quite a while since the telco last grew its dividend.

Is there a dividend increase coming from Telstra?

For a number of years, Telstra had been suffering from falling profit as margins were squeezed due to the shift to the NBN for its home broadband connections.

But now the leadership are hinting at future dividend increase.

In September 2021, Telstra released its T25 strategy. Investors may remember that the T22 strategy involved cutting costs, becoming more efficient and monetising some of its assets.

Within that T25 strategy are a number of new focuses. It’s looking to extend its 5G network coverage to 95% of the population. Regional coverage is going to be expanded by 100,000sq km of 4G and 5G coverage. It’s aiming to increase its customer satisfaction across all of its segments, whilst growing its Telstra Plus membership to 6 million by FY25.

In terms of financial goals, Telstra is looking to find another $500 million of net fixed costs between FY23 to FY25. This could help the business with its target of a compound annual growth rate (CAGR) of mid-single digits for earnings before interest, tax, depreciation and amortisation (EBITDA), and high-teens for underlying earnings per share (EPS), to FY25.

For income-focused investors, the most interesting goal might be that Telstra is looking to maximise its fully franked dividends and “seek to grow over time”.

When will those juicy dividends grow?

Telstra’s management recognise the importance of the fully franked dividend. The company’s intention is to return as much cashflow to shareholders that can be sustainably supported by earnings and franking, whilst also balancing the objectives and principles of the capital management framework.

It’s confident in maintaining a minimum payout of $0.16 per share. However, the franking credit balance is low.

Telstra said that in FY21 it reported 15.6 cents of EPS and underlying EPS of 9.7 cents. The managing director Andrew Penn said about the dividend:

We need to grow underlying earnings with our financial ambitions, and grow our franking balance in order to grow fully franked dividends.

This replaces our previous principle to pay fully franked ordinary dividends of 70% to 90% of underlying earnings.

We have replaced this principle because we expect our cashflow to remain ahead of accounting earnings, and we are focused on growing underlying earnings into our total dividend.

On top of paying dividends to shareholders, Telstra wants to invest for growth. Organic growth opportunities could be a long-term or nation-building infrastructure investment, or a major customer project. The telco said it’s exploring opportunities in those areas.

So what about 2022?

Currently, Commsec estimates show that the dividend is expected to be $0.16 per share in both FY22 and FY23.

Indeed, multiple brokers have also pencilled in a dividend of $0.16 per share for the current financial year and FY23, including Morgans, Credit Suisse and Ord Minnett.

However, looking at FY24, Commsec’s estimate for FY24 is $0.17 per share. That would represent growth of 6.25% compared to the current dividend.

At the current Telstra share price, an annual dividend of $0.17 per share would be a grossed-up dividend yield of 5.8%.

The post Is the Telstra (ASX:TLS) dividend going to grow in 2022? appeared first on The Motley Fool Australia.

More reading

• Broker names 2 ASX dividend shares to buy in January
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation 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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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

ARB Corporation Limited (ASX: ARB)

According to a note out of Credit Suisse, its analysts have downgraded this 4×4 parts company’s shares to an underperform rating with a $38.00 price target. Although the broker expects a strong half year result from ARB next month, it suspects that its growth thereafter could slow and its margins could soften. In light of this, it believes its shares are trading at too much of a premium. The ARB share price is trading at $47.64 this afternoon.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Citi reveals that its analysts have downgraded this iron ore giant’s shares to a sell rating with a $17.20 price target. The broker made the move largely on valuation grounds. While Citi acknowledges that iron ore prices have been more favourable than it was expecting, it still believes its current valuation is unjustifiable. The Fortescue share price is fetching $20.80 today.

Insurance Australia Group Ltd (ASX: IAG)

Analysts at Morgan Stanley have retained their underweight rating and $3.75 price target on this insurance company’s shares. According to the note, the broker suspects that IAG may need to increase its home and motor insurance pricing to protect its margins from claims inflation and higher natural catastrophe costs. It appears concerned that this could weigh on its performance and market share. The IAG share price is trading at $4.38.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded
• Why this top broker says the Fortescue (ASX:FMG) share price is overinflated
• Why ARB, Inghams, James Hardie, and SDI shares are sinking
• Why is the ARB Corporation (ASX:ARB) share price sliding 9% today?
• Dividend beasts: 5 ASX 200 shares with the highest dividend yield

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 owns and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended ARB Corporation 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 Appen Ltd (ASX: APX) share price has been sluggish in January, but is making a comeback today.

Shares in the technology company are currently swapping hands at $10.28, an 7.89% fall since market close on 31 December. However, the Appen share price is currently up 5% on yesterday’s close.

Let’s take a look at what might be impacting the Appen share price so far this month.

What’s happening at Appen?

Appen shares are crashing in January, losing most of the gains made in December. In the first six days of the month, the Appen share price fell nearly 10%. Shares then fell a further 2.88% between market close on 6 January and market close on 11 January.

Appen is a technology company specialising in data services used to build artificial intelligence (AI) systems around the world.

The company has not provided any news to the market this year. However, the broader technology market may provide some clues to investor sentiment.

The S&P/ASX All Technology Index (ASX: XTX) fell 6.39% between market close on 31 December and market close on 11 January. Meanwhile, the S&P/ASX 200 Info Tech Index (ASX: XIJ) fell 7.67% in the same timeframe.

Both of these indexes, however, are recovering today. The ASX All Technology Index is up 1.73% at the time of writing, while the Info Tech Index is gaining 2.33%.

United States markets may provide a clue to this trend. The NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) gained 1.73% today, but is down 4.48% since market close on 31 December.

Appen’s share price fall in January comes on the back of a positive December. Between market close on 31 November and market close on 31 December, the Appen share price soared 16.37%.

A recent broker note out of Macquarie raised concerns big technology companies may be bringing AI data services in-house, potentially cutting out service providers like Appen.

As my Foolish colleague James noted, there are also concerns Amazon could enter the data annotation market.

Appen share price snapshot

The Appen share price has shed nearly 55% in the past year, performing roughly 65% worse than the benchmark S&P/ASX 200 Index (ASX: XJO).

In the past month, Appen shares are up 5.11%, while they are down 7.72% in the past week.

The company commands a market capitalisation of more than $1.26 billion based on the current share price.

The post How is the Appen (ASX:APX) share price performing so far this year? appeared first on The Motley Fool Australia.

More reading

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• Why the Appen (ASX:APX) share price crashed 55% lower in 2021
• 5 things to watch on the ASX 200 on Wednesday
• These were the 5 worst performing ASX 200 shares in 2021

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australasian Metals Ltd (ASX: A8G) share price has had an explosive start to this Wednesday’s trading session. At the time of writing, Australiasian Metals shares are up a very pleasing 12.61% at 67 cents a share. But that comes after this small-cap mining company rocketed as high as 72 cents a share earlier this morning, a gain of more than 20%.

So what’s behind this company’s explosive share price gains so far today?

Well, Australiasian metals is a rather interesting company. It used to be known by its primary resource focus with its old name of Australasian Gold. But as we covered late last year, the company announced plans back then to expand into the lithium space with the Mt Peake Pegmatite Field. Then, in mid-November, Australasian Metals announced that it had made a discovery of high-grade lithium deposits at Mt Peake.

Thus, Australasian Gold became Australasian Metals.

So that brings us to today’s announcement that the company released before market open this morning.

Australasian Metals share price rockets on new lithium deal

Australasian Metals announced that it is to acquire a 90% interest in “a large package of highly prospective tenements” within the northern Arunta LCT pegmatite province in the Northern Territory. It will be acquiring this interest from Prodigy Gold NL (ASX: PRX). This package includes five tenements covering roughly 880 square kilometres located approximately 100 kilometres from its existing Mt Peake project.

This will set Australasian Metals back $150,000 in cash. Prodigy will retain the remaining 10% stake in the project until the completion of a pre-feasibility study. Following this completion, Prodigy will “have the ability to elect to convert their 10% interest into a 1% net smelter royalty over the project, or pro-rata fund their interest in the project”.

Here’s some of what Australasian Metals managing director, Dr Qingtao Zeng had to say on this development:

We are growing a dominant tenement position in the exciting Arunta pegmatite province which is prospective for LCT pegmatites and associated lithium-bearing mineralogy. Through this acquisition, A8G’s landholding will increase to more than 1,500 [square kilometres] which places the company as one of the largest holders in the region, with great access to infrastructure, including railway access to Darwin port…

We look forward to being able to apply our experience and expertise across the joint-venture project area, with the aim of discovering more lithium mineralisation to support our development goals.

So it appears that this announcement has been the primary catalyst behind today’s dramatic moves in the Australasian Metals share price. Australasian Metals shares are now up more than 290% over the past 12 months.

The post Australasian Metals (ASX:A8G) share price leaps 20% on big lithium news appeared first on The Motley Fool Australia.

More reading

• 61% spike: This just caused the Pacgold (ASX:PGO) share price to hit new peaks
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Motley Fool contributor Sebastian Bowen 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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Shares in gold exploration company Pacgold Ltd (ASX: PGO) are booming today and have now surged 61% into the green. They’re now trading at 79 cents a share.

Investors are responding positively to a company announcement on its Alice River Gold Project in North Queensland before market open today.

Shares spiked from the opening bell and have been riding high every since. Let’s take a closer look.

Why is the Pacgold share price charging higher?

Pacgold provided an update on drilling assay results following completion of the diamond (DD) and reverse circulation (RC) drill programme at its Alice River Gold Project, west of Cooktown.

The project consists of 13 tenements, comprised of eight mining leases and five exploration tenements. They cover an area of 377 km.

A total of 39 holes were completed at the site, comprised of 2,007m in the DD programme and 5,018m via RC drilling.

Pacgold has received results for 25 holes, with results pending for the remaining 14 holes, including 7 holes targeting the “newly discovered high-grade gold zone”.

New assay results from drilling at the zone that lies below and along strike of the historical open pit have extended the high-grade gold zone reported in late 2021, according to the company’s announcement.

The company says that “high-grade intersection in [hole] ARDH026 is drilled 60m below the recent PGO drill intersection of 26m @ 3.6g/t Au from 104m incl. 3m @ 21g/t Au from 126m and shows a strong increase in gold grade and width of mineralisation from surface to a depth of at least 210m”.

It also advised that “multiple visible gold occurrences (results pending) [were] intersected in drilling 130m along strike from ARDH026”. The company announcement says assay results for a further 7 holes completed into the zone are expected to be received over the next 5 weeks.

Pacgold notes that drilling success to date and “confirmation of [its] mineralisation model unlocks enormous scope on the Project, with significant potential for the system to define a large-scale resource”.

The company now believes that the high-grade gold zone could extend over 700m in strike from greater than 100m depth below the surface and remains open in all directions.

Management commentary

Speaking on the announcement, Pacgold Managing Director Tony Schreck said:

This excellent result in drill hole ARDH026 represents a pivotal advance for our Alice River Project, providing compelling indications we have just intersected the top of a large, high-grade gold system only 100m below surface. We have achieved rapid success applying the gold mineralisation model based on the tier-1 Donlin gold deposit in Alaska, which suggested potential higher grades as we transition deeper into the system. Results are pending for an additional 7 drill holes completed over 250m strike, targeting the zone between 100m to 320m below surface. All 7 holes intersected broad zones of alteration and veining associated with the target, including a 1m interval (ARDH027) with strongly disseminated visible gold.

The Pacgold share price has climbed more than 35% this year to date and has rallied 192% in the last 12 months.

The post 61% spike: This just caused the Pacgold (ASX:PGO) share price to hit new peaks appeared first on The Motley Fool Australia.

More reading

• Australasian Metals (ASX:A8G) share price leaps 20% on big lithium news
• ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded
• Could Macquarie (ASX:MQG) become Australia’s second-biggest bank in 2022?
• Here’s why the Immuron (ASX:IMC) share price is rocketing 31% today
• Exactly who will own Sydney Airport (ASX:SYD) following its takeover and why does it matter?

The author has no positions 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has bounced back and is charging higher. The benchmark index is currently up 0.85% to 7,453 points.

Here’s what is happening on the ASX 200 today:

Afterpay-Block takeover approval

The Afterpay Ltd (ASX: APT) share price is charging higher today after the Bank of Spain approved Block’s takeover of the buy now pay later provider. This means the deal can now complete and Afterpay’s shares will be suspended from trade later next week. They will then be replaced with ASX-listed Block CDIs which will trade under the SQ2 ticker code.

Fortescue shares downgraded

The Fortescue Metals Group Limited (ASX: FMG) share price is falling on Wednesday. This follows the release of a broker note out of Citi which revealed that it has downgraded the mining giant’s shares to a sell rating with a $17.20 price target. The broker made the move largely on valuation grounds.

Liontown offtake agreement

The Liontown Resources Limited (ASX: LTR) share price was up as much as 13% this morning after returning from its trading halt. This was driven by the announcement of the lithium developer’s first offtake agreement. Liontown will supply one of the world’s premier battery manufacturers, LG Energy Solution (LGES), with 150,000 dry metric tonnes (dmt) per annum of spodumene concentrate when production commences at Kathleen Valley. This is almost a third of its start up production.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Nickel Mines Ltd (ASX: NIC) share price with a 6.5% gain. This follows a strong rise in the nickel price overnight. It rose 5.5% to US$21,986 per tonne. Going the other way, the worst performer has been the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price with a 3% decline on no news.

The post ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded appeared first on The Motley Fool Australia.

More reading

• Here’s why the Liontown (ASX:LTR) share price is rocketing 13% higher
• Why this top broker says the Fortescue (ASX:FMG) share price is overinflated
• Afterpay-Block takeover approved: Here’s what happens to your shares
• 2 ASX 200 shares that could be top buys for dividends
• 5 things to watch on the ASX 200 on Wednesday

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 Afterpay Limited. The Motley Fool Australia owns and has recommended Afterpay Limited. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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Capping off a tremendous year on the chart, shares in Macquarie Group Ltd (ASX: MQG) are in hot focus for investors as we ease into the first quarter of 2022.

Although the S&P/ASX 200 Financials Index (XFJ) has slipped less than 1% in the red over the last week of trading, it remains up 3% for the month. Macquarie has lagged the broad index in that time and is up just 1.5% at the time of writing.

Macquarie nudged past several milestones last year. For instance, it eclipsed the illustrious $200 per share mark in October and has since climbed more than $5 per share to today’s session.

This momentum permeated an impressive hallmark for the bank, positioning it as the 4th largest bank in Australia by market cap.

Macquarie now replaces ANZ in the notorious “big 4 of banking” group that has held the mantlepiece for all these years.

And with several of the banking majors facing stress both in operations and on stock prices already this year, it begs the question – could Macquarie become Australia’s second-biggest bank in 2022? Here’s what the experts think.

What’s in store for Macquarie in 2022?

Fundies are constructive on the Macquarie share price too. The bank is a core holding across several managed accounts.

For instance, Medallion Financial managing director Michael Wayne previously told Tony Yoo of The Motley Fool that his team continues to hold Macquarie shares for many clients.

Although, Wayne also reckons that “It is hard to be a buyer at these levels, and our preference would be to buy after a decent pullback”.

Perennial Value Management’s Stephen Bruce also told The Motley Fool that Macquarie is one holding that the firm would keep for many years into the future.

“If you continue on with the green and energy transition theme, Macquarie largely invented it”, Bruce says when estimating what Macquarie’s outlook might be in 4 years time.

Citi is also bullish on Macquarie and values the bank at $226 per share. The firm was unfazed by Macquarie’s recent share purchase plan (SPP) that garnered considerable open interest from shareholders.

Macquarie will accept the SPP applications in full, and “expects to issue approximately 6.8 million fully paid shares for $1.3 billion” says Citi.

Meanwhile, each of JP Morgan, Morgan Stanley and Jefferies reckon Macquarie is a buy right now. In fact, in a list of analysts covering the bank provided by Bloomberg Intelligence, 61.5% of coverage has it as a buy whereas just 1 firm advocates to sell.

Could it reach the number two spot?

In terms of market capitalisation, Macquarie is the ‘smallest’ entrant into the big 4 group at a fully diluted market value of $78 billion.

Commonwealth Bank of Australia (ASX: CBA) closes out the group on a $173.6 billion market capitalisation and therefore holds the top spot.

Macquarie would therefore need to surpass National Australia Bank Ltd. (ASX: NAB)’s market value of circa $95 billion to claim the silver medal.

Macquarie has more than 353 million basic shares outstanding and a fully diluted share count of 381.4 million shares.

As such, using some back of the envelope calculations, Macquarie would need to trade at $249 per share in order to surpass NAB in terms of market capitalisation and take second place, according to those stipulations.

With a 12-month price target of $212 per share, the bank might find some difficulties getting there, but time and market mechanics will certainly tell.

Either that or the NAB share price needs to take a big step backwards and trade well below its current levels for the same outcome.

In the last 12 months, the Macquarie share price has soared to new peaks and climbed more than 50% in that time. In the past month, it is up more than 3% and has started the year in the green as well.

The post Could Macquarie (ASX:MQG) become Australia’s second-biggest bank in 2022? appeared first on The Motley Fool Australia.

More reading

• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• These were the top 5 ASX 200 bank shares in 2021
• How the Macquarie (ASX: MQG) share price went in 2021
• Christmas highs: 3 ASX 200 shares hitting record highs today
• The ASX share I’d hold onto no matter what: expert

The author has no positions 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 Macquarie Group 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 Immuron Ltd (ASX: IMC) share price is shooting out the lights on Wednesday following a positive update from the company.

At the time of writing, the biopharma company’s shares are swapping hands for 12.2 cents, up 31.18%.

A clinical-stage medical company, Immuron is focused on the development and commercialisation of a novel class of specifically targeted polyclonal antibodies. The company researches and develops hyperimmune products for markets in Australia, the United States, and Canada.

Product sales comprise Travelan and Protectyn, used for the prevention of travellers’ diarrhoea.

Let’s take a look at the company’s latest news…

What did Immuron announce?

Investors are buying up Immuron shares after the company announced funding on a new research agreement.

According to its release, Immuron advised it has been awarded funding from the United States Department of Defence for Travelan. This will be aimed at examining a dosing regimen of the oral immunotherapeutic for use by the military.

In total, US$4.45 million (A$6.2 million) will be allocated to conduct a controlled human infection model (CHIM) clinical trial.

Up to 60 volunteers will be enrolled in the study. They will be randomly selected to receive either a once-daily dose of 1200 mg of Travelan or placebo.

The results of the trial will also provide information on dosing in the future Phase 3 registration trials.

Immuron noted that a project meeting has been scheduled for the end of January with the US government sponsors.

Infectious diarrhea is the most common illness reported by travellers visiting developing countries and among US troops deployed overseas. The morbidity and associated discomfort stemming from diarrhea decreases daily performance, affects judgment, decreases morale, and declines operational readiness.

While the first line of treatment for infectious diarrhea is the prescription of antibiotics, this has waned over the last decade. Several enteric pathogens have evolved to become increasingly resistant to commonly prescribed antibiotics.

Immuron CEO Dr Jerry Kanellos commented:

This new project expands our clinical development program and represents the first of several significant clinical trials which the company expects to undertake with the US Military in 2022.

…The new funding is testament to the value proposition our hyperimmune bovine polyclonal colostrum technology offers to benefit the U.S. Military as well as the civilian international travelling population.

Immuron share price snapshot

A disappointing 12 months has led Investors to recorded losses of almost 60% on the Immuron share price. In the past month alone, the company’s shares have declined around 20%, highlighting a strong downward trend since July 2020.

Based on today’s boosted share price, Immuron has a market capitalisation of roughly $28 million, with approximately 227 million shares on issue.

The post Here’s why the Immuron (ASX:IMC) share price is rocketing 31% today appeared first on The Motley Fool Australia.

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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 takeover of Sydney Airport (ASX: SYD) is likely preparing to take off early next month. Shareholders are set to vote in a ballot on 3 February.

If all goes to plan, the takeover will see one of the globe’s major airports taken from public boards and placed among private investment firms. Having said that, it will still be in the hands of regular Australians.

It’s to be taken over by the Sydney Aviation Alliance – a consortium of superannuation funds. That means many Aussies will see their super balance grow on the back of the airport.

But will the delisting of Sydney Airport prove to be positive for day-to-day Australian investors?  

Right now, the Sydney Airport share price is $8.69. That’s slightly lower than the consortium’s takeover bid of $8.75.

What does Sydney Airport’s takeover mean for retail investors?

The Sydney Airport might be in its final weeks as a listed entity.

It’s set to be purchased in part by the consortium’s leader IFM Investors – owned by 23 pension funds.

Global Infrastructure Partners ­– on behalf of its managed funds and clients – is also expected to have a tight hold on the consortium.

Meanwhile, super funds AustralianSuper, QSuper, and UniSuper, will each hold interests ranging from 7.5% to 18%.

Super funds are effectively run to benefit Australians. But will the delisting of a major Australian stock be a hit to retail investors?

Association of Superannuation Funds of Australia CEO Martin Fahy isn’t worried. He told The Age Sydney Airport’s takeover doesn’t mark the start of a “great delisting”:

Aussie Super and IFM taking a company off the ASX boards is effectively putting it into the hands of ‘mom and pop’ investors. Other investors might not see it like that, but that’s effectively what it is.

Though, Wilson Asset Management chair and chief investment officer Geoff Wilson isn’t so optimistic.

He said, while super funds snapping up companies ultimately sees them owned by Australians, there’s a downside to the privatisation of Australian companies. The Age quoted Wilson:

[A]s an investor in the stock market, I’d like more companies, more opportunity, and more variety.

Australians have a very high participation in investing in the stock market, and it’s unfortunate if they don’t get that opportunity.

While the takeover is likely to see Sydney Airport taken from the ASX – at an aggregate price of $23.6 billion – it’s also boosted its share price.

Since the consortium’s initial $8.25 per share bid was first posted, the airport’s stock has gained 49%.

The post Exactly who will own Sydney Airport (ASX:SYD) following its takeover and why does it matter? appeared first on The Motley Fool Australia.

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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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