Category: Stock Market

The EBOS Group Ltd (ASX: EBO) share price is edging higher today after the company provided an update on its equity raise.

At the time of writing, the pharmaceutical wholesaler and distributor’s shares are swapping hands for $36.17, up 4.24%.

What did EBOS announce?

Investors are buying up the EBOS share price after coming out of a trading halt this morning.

According to the release, EBOS advised that it has successfully completed a fully underwritten placement. The offer received significant interest in which both new and existing investors across Australia and overseas, raising NZ$674 million (A$642 million).

EBOS will issue around 19.5 million ordinary shares under the placement, which represents about 11.9% of its entire issued capital. The issue price of NZ$34.50 per share reflected a 5.5% discount to the last closing price of NZ$36.50.

The newly created shares are expected to settle on Tuesday 14 December, with allotment on the following day.

In addition, EBOS will launch a non-underwritten retail offer to eligible shareholders, raising a further NZ$105 million (A$100 million). Detail of the retail offer will be released in a retail offer booklet on 15 December.

The closing date for application in the offer will be on Monday 17 January.

The proceeds raised from the placement will be used to partly fund the acquisition of LifeHealthcare. EBOS will use a combination of equity, debt and existing capital reserves.

Founded in 2006, LifeHealthcare is one of the largest distributors of third-party medical devices in Australia and New Zealand. The company has a broad portfolio of products in various channels that include spine, orthopaedics, robotics, plastics & reconstructive surgery, and interventional neuro-vascular surgery.

What did management say?

EBOS CEO, John Cullity commented:

We are very encouraged by the strong support from investors for the Placement and in particular, the level of support from our existing shareholders. We are also pleased to have the opportunity to welcome new high-quality investors to the register.

The acquisition of LifeHealthcare accelerates EBOS’ medical devices strategy and creates a platform for EBOS to capitalise on additional future growth opportunities. We look forward to completion and the integration of LifeHealthcare into our existing institutional healthcare division.

About the EBOS share price

Adding to today’s gains, the EBOS share price has accelerated 51% in the past 12 months. It’s worth noting that the company’s shares are hovering about 3% off its all-time high of $37 reached in mid-September.

Based on valuation grounds, EBOS presides a market capitalisation of $5.93 billion, with roughly 164.18 million shares outstanding.

The post Here’s why the EBOS (ASX:EBO) share price is climbing today appeared first on The Motley Fool Australia.

More reading

• EBOS (ASX:EBO) share price on watch amid cap raise and $1 billion acquisition

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 Fortescue Metals Group Limited (ASX: FMG) share price is trading lower on Friday.

In morning trade, the mining giant’s shares were down almost 2.5% to $17.83.

Why is the Fortescue share price tumbling lower today?

Investors have been selling down the Fortescue share price on Friday following the surprise announcement of the exit of its Chief Executive Officer, Elizabeth Gaines.

According to the release, after four years in the top job, Ms Gaines is stepping down and will transition to the role of Non-Executive Director.

What’s next?

Fortescue is now embarking on an extensive global search for a replacement with the appointment of global management consulting and executive search firm Egon Zehnder.

Egon Zehnder will be tasked with identifying a CEO and other leaders with exceptional skills and global experience across heavy industry, manufacturing, and renewable energy.

Fortescue also highlights that its new CEO and leaders will be expected to have a strong track record of delivering transformation, innovation and enhanced value for stakeholders. Furthermore, the successful candidates will share Fortescue’s culture and values to assist the company as it delivers on its vision of moving from a pure play iron ore producer to a diversified renewable energy and resources major.

“An enormous opportunity”

Fortescue’s Chairman, Dr Andrew Forrest, has commented on the search for a replacement.

He said: “The search with Elizabeth, for a CEO and an even deeper management bench, is an enormous opportunity for a talented and visionary executive team, to continue the successful leadership of Fortescue, as we deliver on our strategy to diversify Fortescue to a renewable energy and resources company.”

“Fortescue Future Industries (FFI) is making enormous progress and will support the decarbonisation of Fortescue through the innovation and technological development of a green fleet and the supply of green energy. We are undergoing a significant transition, and I am delighted that with Elizabeth, the board is united in its vision and enthusiasm for the opportunity this presents,” Dr Forrest added.

The Fortescue share price is down 28% in 2021 amid falling iron ore prices and FFI uncertainty. Ms Gaines exit today certainly adds to the latter.

The post Fortescue (ASX:FMG) share price falls following surprise CEO exit appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX buy now, pay later (BNPL) shares, such as Zip Co Ltd (ASX: Z1P), might find themselves short of funds in the new year, according to Grant Halverson, the founder and CEO of payments consultancy McLean Roche.

In response, ASX BNPL giants may need to turn to investors to garner the cash.

Will 2022 dampen ASX BNPL shares?

Halverson believes rising interest rates may force BNPL companies to borrow at fixed margins above interbank lending rates to maintain their own loan books.

Additionally, the companies may be engaging in a ‘race to the bottom’ to get into the United States market. That will likely put their operations at a higher risk of bad debts and lessen their chances of receiving cheap loans.

That could leave ASX BNPL companies like Zip Co turning to the market to raise cash.

Let’s test Halverson’s theory and take a look at Zip’s balance sheet, latest fundraising activities, and growth plans.

Zip is expanding worldwide

It hasn’t been long since Zip last underwent a capital raise. In April 2021, the Zip share price temporarily dipped on news it was undergoing a $400 million notes offering to fund its international expansion plans.

And expand it has done. The company acquired European BNPL provider, Twisto Payments last month.

It also recently rebranded US BNPL company QuadPay, which Zip Co purchased in 2020.

Zip is also gearing up to finalise its acquisition of South African BNPL provider, Payflex early next year. Zip has also made moves to break into the Middle East, Philippines, and Indian markets.

The company hasn’t flagged if it’s still looking for new acquisitions in 2022.

Zip’s financial position and share price

At the end of FY2021, Zip Co had about $330 million in cash or cash equivalents to its name. Its assets totalled approximately $1.1 billion. It reported $143.5 million in gross profits over the period.

For comparison, the biggest BNPL player on the ASX, Afterpay Ltd (ASX: APT), recorded a gross profit of about $675 million for FY2021. It ended the period with approximately $1.1 billion in cash and cash equivalents and approximately $2.6 billion in total assets.

In FY2021, the Zip Co share price experienced a wild ride. It soared to an all-time high of $14.53 on 16 February after trading at a 52-week low of $4.96 in December 2020. Overall, Zip shares increased in value by 42% from $5.30 on July 1 2020 to $7.57 on June 30 this year.

What’s next for the Zip share price?

Whether ASX investors will be kind to Zip Co in 2022 is impossible to know. But according to reporting by the Australian Financial Review, Halverson says ASX BNPL shares could see higher bad debts in 2022. He says this may lead to lower credit ratings and higher funding costs.

Interested market watchers might want to keep an eye on interest rates and their effect on ASX players like Zip.  

In early morning trade on Friday, Zip shares are fetching $4.92, down 2.96%. Afterpay is also trading lower at $96.58, down 3.68%.

The post Expert warns Zip (ASX:Z1P) and cohorts may need to raise more capital in 2022 appeared first on The Motley Fool Australia.

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• Why is the Zip (ASX:Z1P) share price zooming 9% higher today?
• Why Life360, Oil Search, Telix, and Zip shares are storming higher
• Here’s why ASX BNPL shares are in the spotlight today

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. owns and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Today, there’s a small cryptocurrency that’s making a big move. Earlier this morning, Celo (CRYPTO: CELO) surged to as high as $4.72 per token, representing an increase of nearly 30% since yesterday’s close. This rapid move has been quickly corrected, though Celo does remain 5.2% higher over the past 24 hours, as of 12:30 p.m. ET. This move comes amid more downside momentum in the crypto world today, with the overall market down 3.4% at the same time.

Yesterday’s announcement that crowdfunding platform Kickstarter would be migrating to a platform based on the Celo blockchain has provided a key catalyst for this cryptocurrency. It appears investors primarily in Asia jumped on this catalyst, with Celo’s outsize move happening during trading hours there.

So what

Celo is a top 100 cryptocurrency, but one many investors may not have heard of. With a market capitalization of “only” $1.4 billion, it’s a relatively emerging player in the crypto scene.

What makes Celo special is this blockchain ecosystem’s focus on increasing crypto adoption among smartphone users. For platforms like Kickstarter looking for more market share among mobile users, as well as those without banking access, Celo’s platform is enticing. 

Additionally, it has been pointed to as an excellent blockchain network from an environmental standpoint. This network’s proof-of-stake network has allowed Celo to become carbon negative, something Kickstarter executives like. Given the attention that’s now being paid to energy usage in the crypto world, Celo’s environmental positioning is something worth considering. At least, Kickstarter executives think so.

Now what

The world of cryptocurrencies is a vast, fast-moving space. It’s impossible to keep tabs on every one. Indeed, Celo is a blockchain network that may not have gotten the attention it rightfully deserves.

This announcement could pave the way for further partnerships and adoption of the Celo blockchain. Accordingly, the sharp spike we’ve seen with Celo of late appears to be warranted.

It should be noted that Celo tokens remain approximately 65% below their 52-week highs. Thus, this is a small-cap token many investors may want to take a flier on right now. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why this cryptocurrency soared nearly 30% today with the overall crypto market down appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) share price falls following surprise CEO exit
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• Here’s why the Telix (ASX:TLX) share price is falling today
• Why is the AVZ (ASX:AVZ) share price crashing 15% today?

Chris MacDonald 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The giant Chinese real estate developer Evergrande has officially defaulted, according to reports. In response to that, the ratings agency Fitch has downgraded it.

Evergrande defaults

Reporting by Bloomberg said that Evergrande bondholders are going to face “deep haircuts” through a restructuring that may take months or even years to resolve.

Chinese officials have reportedly made it clear that Evergrande is not going to be bailed out. People’s Bank of China Governor Yi Gang said in a video message that the situation is a “market event that should be dealt in a market-orientated way”.

Evergrande has been struggling with over $300 billion of debts that it has been missing just the interest repayments on.

At the end of last week, Evergrande told the market in an announcement that it had received a demand to perform its obligations under a guarantee for an amount of around US$260 million. If Evergrande was unable to meet its guarantee obligations or certain other financial obligations, it could lead to creditors demanding an acceleration of repayment.

Evergrande admitted there was no guarantee that the group will have sufficient funds to continue to perform its obligations. It said it was going to work on a viable restructuring plan.

However, in anticipation of potential problems, authorities have reduced lender reserve requirements, eased real estate rules and introduced measures to make sure that higher-rated developers can still get funding. Authorities may decide to prioritise “social stability” when deciding who gets their money back.

Fitch weighs in on Evergrande

The ratings agency Fitch has downgraded Evergrande to “restricted default” after failing to make two interest payments by the end of the grace period this week.

This reportedly may mean that it activates cross defaults across $19.2 billion of debt.

Fitch said it was unable to get confirmation that this week’s payments were made, so it assumed they were not paid after bondholders reported not receiving their money.

Some of the bond investors that Bloomberg spoke to expect that they will be at the back of the queue in getting their money back, if at all. Some of the world’s biggest investment groups may have been trapped in this, including Blackrock, UBS and Allianz.

Other Chinese developers problems

Evergrande isn’t the only one that seems to have officially defaulted. Kaisa Group reportedly missed repaying a $400 million bond that matured earlier this week.

Fitch has also cut the rating of Kaisa Group to “restricted default”.

Bloomberg reported that those two companies alone account for around 15% of outstanding dollar bonds sold by Chinese developers.

What next?

It was speculated by Brock Silvers, chief investment officer at Kaiyuan Capital, that due to the fact that the company is in China, the default won’t lead to an immediate collapse or even a big impact because the Chinese government is in charge of the situation, not the bondholders.

He Jun, a researcher at independent strategic group Anbound Consulting, said to Bloomberg that one potential roadmap could be seen with HNA Group. With HNA, the local government took over running of the business and then 12 months later went into a court-led restructuring.

The S&P/ASX 200 Index (ASX: XJO) is down 0.4% at the time of writing. Only today’s transacting investors know how much they are taking the Evergrande news into account with this decline.

Looking at the ASX’s two biggest miners, BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), they are down 0.6% and up 0.4% respectively.

The post Evergrande officially defaults, downgraded by Fitch. What next? appeared first on The Motley Fool Australia.

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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 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 Melbourne-based oncology company Telix Pharmaceuticals Ltd (ASX: TLX) are currently down 2% in the red today, trading at $7.35 apiece.

Investors aren’t responding enthusiastically to a company announcement early on during Friday’s session concerning regulatory approval of its Illuccis label.

Following the update, Illuccix has successfully progressed to the final stage of regulatory assessment in Europe. Here are the details.

What did Telix announce?

Telix advised that its marketing authorisation application (MAA) submission in Europe for the registration of its lead product Illuccix has successfully progressed to the final stage of regulatory assessment.

Illuccix is indicated for use in prostate cancer imaging, and has already been approved by the Australian Therapeutic Goods Administration (TGA), and accepted for filing by the U.S. Food and Drug Administration (FDA).

Hence approval in the European, Middle East and Africa (EMEA) zones is a high watermark that would round out Telix’s Illuccix offering on a global scale, considering its approval in Australia and potentially the US.

The release notes that after a comprehensive review process, an ”approval decision notification” of the product’s registration status in Europe is expected to be provided no later than 23 March 2022.

According to Telix, the evaluation of Illuccix has been led by The Danish Medicines Agency (DKMA) in its capacity as a Reference Member State (RMS). It is doing so on behalf of 13 European countries and the United Kingdom.

These are the initial territories that were selected by Telix for MAA submission. The DKMA has confirmed that Telix has “fully responded to all information requests that have been issued to the company on behalf of the member states”, and that it will issue an approval decision notification within 90 days.

Following the DKMA’s decision, national stage approvals for the individual 14 member countries are expected to commence within 30-60 days of the notification.

Today’s update also follows on from an announcement on Wednesday advising that the company had entered into an exclusive commercial agreement with Nucliber, a Spanish based company, to distribute Illuccix into the Spanish market.

Speaking on the announcement, Telix EMEA President Mr Richard Valeix said:

We thank the DKMA for the collaborative interactions throughout the review process. We are pleased to have confirmation that the so-called “clock-stop” period has concluded, putting us on track for decision in early 2022. PSMA-PET imaging is arguably one of the most important developments in prostate cancer in recent years, we look forward to bringing this next-generation diagnostic tool to patients across Europe, once approved.

Telix Pharmaceuticals share price summary

In the last 12 months, the Telix share price has gained 122% after rallying a further 94% this year to date.

In the past month, it is up 4% whereas it has climbed another 14% in the past week on the back of its most recent updates.

The post Here’s why the Telix (ASX:TLX) share price is falling today appeared first on The Motley Fool Australia.

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The author 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 AVZ Minerals Ltd (ASX: AVZ) share price is back from its trading halt and sinking notably lower.

At the time of writing, the lithium explorer’s shares are down 15% to 54.5 cents.

Why is the AVZ Minerals share price sinking?

The AVZ Minerals share price has come under pressure today after the company completed its institutional placement.

According to the release, AVZ has received firm commitments to raise $75 million (before costs) at a 22% discount of 50 cents per new share. Approximately 85% of the funds were raised from global institutions, with the balance coming from existing sophisticated shareholders. This includes cornerstone investor Suzhou CATH Energy Technologies.

Management highlights that the capital raising will allow the AVZ Board to efficiently progress towards a Final Investment Decision (FID) for the commencement of project development at the Manono Lithium Project in the Democratic Republic of the Congo.

In addition, management notes that it will provide foundation support for AVZ’s longer term strategic vision to vertically integrate via further investments into downstream lithium processing opportunities.

An important milestone

AVZ Minerals’ Managing Director, Nigel Ferguson, believes this is an important milestone for the company.

He commented: “This capital raising marks an important milestone in our journey to develop the Manono Project which strengthens the financial position of the Company and will assist to keep the Project timeline within reach, despite the award of our Mining Licence taking longer than we had previously anticipated.”

Speaking of which, Mr Ferguson remains confident that the company will receive its licence.

He explained: “We are in close consultation with the DRC Government authorities that are undertaking the Mining Licence assessment and are confident of delivering a favorable outcome for all stakeholders – most importantly the people of the DRC and our shareholders.”

Finally, the company also feels that the capital raising has de-risked things meaningfully and positions it well for financing discussions.

“Such a significant cash injection further de-risks the Company during a time where increased market volatility is apparent and global economic uncertainty still remains. The placement also assists our financing discussions, providing capital for up-front debt finance establishment costs and ensuring minimum liquidity requirements are met which provides AVZ with a solid foundation to negotiate favourable terms,” Mr Ferguson added.

The AVZ share price is up 220% in 2021 despite today’s decline.

The post Why is the AVZ (ASX:AVZ) share price crashing 15% today? appeared first on The Motley Fool Australia.

More reading

• These were the 5 best performing ASX shares in November

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Concerns around crypto mining have hampered the price of Bitcoin (CRYPTO: BTC) today, with the world’s largest cryptocurrency down 4.6% over the past 24 hours, as of 10:15 a.m. ET.

This near-term sentiment didn’t dissuade high-profile growth investor Cathie Wood from placing an astronomical price target on Bitcoin. Wood believes it could surge 1,000%, adding another $500,000 to the token’s existing price around $50,000 today.

So what

Today, headlines suggesting that key Bitcoin mining jurisdictions, such as Kazakhstan, could become less friendly to miners have some concerned about the bearish regulatory stance that’s increasing among regulators of large crypto mining markets. China has already cracked down hard on crypto mining, with the U.S. also apparently looking into the environmental impacts of this energy-intensive activity.

But Bitcoin bulls like Cathie Wood appear to be looking past this negative near-term catalyst. She believes that institutional adoption of Bitcoin could propel it to much higher levels.

Wood argues that despite what appear to be high levels of correlation among Bitcoin and other risk assets during this omicron-related market dip, the digital currency is actually a “low correlation” asset. Institutional investors looking for portfolio diversification may adopt Bitcoin rapidly, to improve risk-adjusted returns. Wood cites relatively low institutional exposure to crypto, and Bitcoin’s status as a top cryptocurrency, as reasons this token in particular could see massive capital inflows.

Now what

The idea that institutional money is likely to flow into Bitcoin first is not necessarily a fringe view. The recent capital inflows into Bitcoin as a result of various ETFs and other investment products targeting Bitcoin are certainly something to watch. It is possible that Bitcoin’s longer-term track record in the crypto market could be the catalyst for increased portfolio adoption.

However, the jury remains out on the extent to which Bitcoin moves in low correlation to other speculative risk assets. This is something that investors have pondered for some time, as well as the volatility of this overall sector. 

Wood set a big price target, and whether she is ultimately proved right in her 10-bagger prediction remains to be seen. However, institutional adoption of Bitcoin will likely continue to be a key catalyst that investors watch when assessing the cryptocurrency. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why the Bitcoin price declined over the last 24 hours appeared first on The Motley Fool Australia.

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Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Alphinity Investment Management client portfolio manager Alfreda Jonker tells why trying to time the market is fraught with danger.

Looking back

The Motley Fool: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

Elfreda Jonker: Over the last year or two with COVID, it’s obviously been a very volatile period and a lot of style switches. And for us at Alphinity, our process is sort of our religion, in that we combine fundamental and quantitative research. We look at this all the time and look at the signals: Where are the earnings upgrades? What is the quality? What is the value of the company? I think, over the last 2 years, a lot of us have started to focus on which of the stocks are the COVID beneficiaries — who will lose and who will win, and when will the reopening happen? 

As a result, we get a stock like Qantas Airways Limited (ASX: QAN) in our portfolio. Even though we reduced it slightly, it’s actually started to see big earnings downgrades.

With all the [COVID] shutdowns and all these false starts, we held out to say, “Okay, we think it’ll get back to that earnings upgrade cycle now”. Then it’s, “Okay, not happening now. Then next year”. 

The regret for us is rather than trying to be cute about timing the cycle — timing particular themes like a COVID reopening — just stick to your process. Just go back to process and, especially through volatile times, just focus on that and say, that is what we always do. 

We’ve been managing our funds like that for 11 years now. Don’t try and play these themes and cycles because, if we did, we probably would’ve traded that particular stock better. 

But of course, you always look at this in hindsight. And I think a lot of people make mistakes over their years, but it’s definitely a lesson that we’ve learned over the last year is… when things get volatile and there are so many different themes driving the market, don’t try and play with those.

Rather, go back to basics and focus on the fundamentals and the earnings, and let that guide you as far as when and how to invest in a company. 

There’s a lot of COVID beneficiaries and reopening stocks that you can put in that same bucket, from a global perspective as well. So that, I would say, is probably our regret. We probably should not try [to] call timing on when to invest in reopening companies.

MF: Fair enough. Regardless of whether you’re an amateur or professional, no one has a crystal ball, do they?

EJ: Exactly. 

Well, on the other hand, it did open up opportunities like Sydney Airport (ASX: SYD), which we didn’t own, but that the valuations obviously pulled back so much that it opened up for opportunity to be bought out. So there was some good that came out of this as well. 

But yeah, nobody’s [got] a crystal ball and I guess that’s why we don’t try and make really big overarching trades on themes or trends or macro calls. 

We rather just focus on that fundamental — bottom-up — finding the leadership opportunities. That’s a better approach for us over the long term if we want to get that consistent return we want to offer.

The post Why investors should never try to time the market or themes appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns Sydney Airport Holdings 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 CSL Limited (ASX: CSL) share price has been underperforming in 2021.

Since the start of the year, the biotherapeutics giant’s shares are up approximately 7%.

This falls short of the S&P/ASX 200 Index (ASX: XJO) with its gain of 10.5%.

Is the CSL share price good value at the current level?

While the CSL share price underperformance is disappointing for shareholders, it could be a buying opportunity for non-shareholders.

Two brokers that are bullish on the company right now are Morgans and Macquarie Group Ltd (ASX: MQG).

Morgans currently has an add rating and $324.40 price target on its shares, whereas Macquarie has an outperform rating and $338.00 price target.

Based on the current CSL share price of $304.68, this implies potential upside of 6.5% to 11% over the next 12 months.

Why are the brokers positive on CSL?

Both brokers appear confident in the company’s long term growth profile. Macquarie notes that immunoglobulins demand remains strong and is expected to grow in the future. This should be supported by a more efficient plasma collection platform that CSL is working on at present.

Morgans appears to agree with this view. And while it acknowledges that the near term will be challenging because of plasma collection headwinds, it feels CSL is best-positioned to meet the aforementioned growing demand for immunoglobulins.

The broker commented: “We view CSL as a core holding and best positioned among its peers to meet growing patient demand, but the near term remains challenged, with timing uncertainty around a full recovery in plasma collections and increasing costs.”

All in all, this could make the CSL share price one to consider for investors that are looking for options in the healthcare sector right now.

The post Is the CSL (ASX:CSL) share price great value? Here’s what analysts think: appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has recommended Macquarie 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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