Category: Stock Market

Are you looking for dividend shares to buy? If you are, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be in the buy zone:

Accent Group Ltd (ASX: AX1)

The first dividend share to look at is Accent. This retailer owns and operates a growing network of footwear focused brands including The Athlete’s Foot, Platypus, and HypeDC to name just three.

Over the last decade, Accent has been growing its earnings and dividend at a strong rate. And while this is unlikely to be the case in FY 2022 due to the negative impact of lockdowns on its performance, a number of brokers expect its strong growth to resume next year.

One of those is Bell Potter, which has a buy rating and $3.05 price target on its shares at present.

As for dividends, the broker is forecasting fully franked dividends per share of 9.1 cents in FY 2022 and then 13.5 cents in FY 2023. Based on the latest Accent share price of $2.34, this represents yields of 3.9% and 5.75%, respectively.

Rio Tinto Limited (ASX: RIO)

Another ASX dividend share to look at is Rio Tinto. This mining giant could be a top option due to the quality of its operations, its exposure to in-demand commodities like aluminium, its attractive valuation, and its generous yield.

In respect to the latter, the team at Goldman Sachs is forecasting fully franked dividend yields of ~11%+ in FY 2022 and FY 2023.

Furthermore, the broker sees decent upside for the Rio Tinto share price at the current level. Goldman has a buy rating and $121.00 price target on its shares at present.

One of the reasons Goldman is so positive on the mining giant is its aluminium business. It explained: “In addition to copper production growth, Rio has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions of $.”

The post Analysts name 2 ASX dividend shares to buy now appeared first on The Motley Fool Australia.

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• Why the Rio Tinto (ASX:RIO) share price could be a bargain buy
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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 recommended Accent Group. 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard but ultimately fell short of recording another gain. The benchmark index dropped 0.3% to 7,384.5 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in a subdued fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower this morning. This follows a poor night of trade on Wall Street, which late on sees the Dow Jones up 0.2%, but the S&P 500 down 0.2% and the Nasdaq down 1%.

ANZ rated as a buy

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price remains in the buy zone according to the team at Bell Potter. In response to its $25 million civil penalty, the broker has retained its buy rating and $31.00 price target on the banking giant’s shares. While another penalty is disappointing, it notes that the bank is well-provisioned for it. Outside this, the broker like ANZ due to its huge opportunity from funding the decarbonisation transition.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week in the red after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 1.6% to US$71.18 a barrel and the Brent crude oil price is down 1.6% to US$74.60 a barrel. Oil prices fell due to concerns about Omicron restrictions in Europe and China.

Annual general meetings

Fund manager Pendal Group Ltd (ASX: PDL) and investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) will be on watch today when they hold their respective annual general meetings. Both companies could provide their shareholders with an update on their performances at their events.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a poor finish to the week after the gold price dropped. According to CNBC, the spot gold price is down 0.5% to US$1,775.10 an ounce. The gold price fell following some strong economic data out of the US.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Why did the AGL share price outperform the ASX 200 today?
• Could rumours over a Westpac (ASX:WBC) mega-merger ever become facts?
• Here are the top 10 ASX shares today
• Woodside (ASX:WPL) share price dips as company eyes east coast market
• Oil Search (ASX:OSH) share price dips despite PNG court approval of Santos (ASX:STO) merger

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 Washington H. Soul Pattinson and Company 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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Shares in banking giant National Australia Bank Ltd. (ASX: NAB) edged higher on Thursday to finish trading at $28.69, up 0.21%.

It’s been a fairly stable year for the NAB share price, as volatility has been constrained and periods of drawdown have been short-lived.

Each downtick in price action has seen NAB springboard off the bottom and climb to new 52-week highs in the days to weeks afterwards.

As such, shareholders have enjoyed a 22% upside in the last 12 months, after shares have rallied a further 27% this year to date, beating the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of 10% in the last year.

With this in mind, we ask – what’s the outlook for NAB investors in 2022? Read on to see what the experts are saying.

What can NAB investors expect in 2022?

In terms of financial performance, data provided by Bloomberg Intelligence reveals that the majority of analysts expect NAB to deliver $17.63 billion in revenue in FY22, which could carry through to $6.4 billion in net profit after tax (NPAT).

This calls for a net margin of 36.5%, and earnings per share (EPS) of $1.95 in FY22. Compared to FY21, that’s a growth of 3.6%. At present, the bank’s total capital ratio is 18.91% as of FY21.

The team at JP Morgan reckon there are plenty of legs left in the NAB share price next year and retain an overweight rating on the stock.

JP Morgan’s stance is reflective of what it deems as NAB’s “stronger-than-peer revenue growth prospects more than offsetting uncertainty on potential enforcement action from AUSTRAC on AML”.

Not only that, the broker notes NAB’s stronger revenue profile versus its peers, and that this reflects NAB’s tilt towards small business banking, which should insulate it from return on equity (ROE) pressures in retail banking.

Whilst it acknowledges that there are still headwinds on the horizon for NAB, JP Morgan has these factored into its forecasts and still sees NAB’s “pre-provision profit growth outstripping peers”.

As such it has a December 2022 price target of $31.40 on the share price, a number which NAB is gradually encroaching on, given its current trajectory.

What is the sentiment on NAB for 2022?

Jarden Securities is equally as bullish on the banking sector and likes the recent focus of Aussie banks in capital management, and cost efficiency over the medium term. It values NAB at $31 a share.

Jefferies is the most bullish on NAB, folding in a $32.60 price target on the share, whereas JP Morgan is a close second.

Goldman Sachs, Bell Potter, Jarden and Barrenjoey each value NAB at $31 a share, whereas Macquarie reckons the bank is worth $30.50 per share.

In fact, the bulk of analysts covering NAB – 62.5% to be exact – have NAB as a buy. The average price target of the analyst group is $30.14, according to the list provided by Bloomberg Intelligence.

With this in mind, taking the wisdom of the crowd, this average figure implies an upside potential of 4.7% at the time of writing.

Hence, the sentiment is bullish on NAB shares and going by what these experts think, it may be a period of marginal growth in FY22 for the company’s share price. However, do note that price targets change often on the back of earnings results, and this may very well be the case for NAB early in FY22.

The post What is the outlook for the NAB (ASX:NAB) share price in 2022? appeared first on The Motley Fool Australia.

More reading

• Can NAB (ASX:NAB) shares ever close in on CBA’s market cap?
• Why ANZ Bank (ASX:ANZ) is losing market share to other big ASX banks
• Here are the 3 top-performing ASX 200 banks of November
• Why did the NAB (ASX:NAB) share price struggle in November?
• Here’s why ASX 200 banks are making news today

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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The S&P/ASX 200 Index (ASX: XJO) ended up having a bit of a disappointing day of trading this Thursday. The ASX 200 ended up finishing at 7,384.5 points, down 0.28%.

But one ASX share was a far more pleasing spectacle to watch. That was the Pengana Private Equity Trust (ASX: PE1) share price. Pengana Private Equity shares ended up finishing the trading day at $1.66 each, up a very pleasing 7.82%. That came after closing at $1.54 a share yesterday and opening at $1.55 this morning.

What’s more is that the $1.66 share price that Pengana Private Equity finished at was both a new 52-week and all-time high for the fund.

Pengana Private Equity is a fund that invests in private equity (companies not traded on a public share market). It has returned an average performance of 13.3% per annum since its inception (April 2019) and targets a 4% dividend yield.

So what was pushing this trust up so convincingly today?

A new high for Pengana Private Equity shares

Well, it seems that a monthly investment update could be to thank. Pengana put out this ASX notice this morning before market open.

It informed the markets that the Pengana Private Equity Trust returned 9.3% over the month of November. That’s objectively an impressive performance for just one month. Especially considering the S&P/ASX 200 Index (ASX: XJO) actually went backwards by close to 1% over the same period.

So how did the Trust make such pleasing bank during November? Well, Pengana cited its investments in Project Rambler, Deliverr and the successful initial public offering (IPO) of the US carmaker Rivian Automotive Inc (NASDAQ: RIVN). On the latter, Pengana stated the following:

We had exposure to the private equity and a convertible security of Rivian, both of which are now held in the company’s public equity. As a participant in the convertible security, we were entitled to additional IPO shares, which we purchased at the IPO price and exited at a material profit shortly after the initial purchase.

The Amazon-backed Rivian made headlines last month when it rocketed nearly 30% on its first day of trading. So you can see how Pengana Private Equity Trust might have made a quid on this investment.

The post Why did Pengana Private Equity Trust (ASX:PE1) shares jump 8% today? appeared first on The Motley Fool Australia.

More reading

• What is the outlook for the NAB (ASX:NAB) share price in 2022?
• Why did the AGL share price outperform the ASX 200 today?
• Argenica (ASX:AGN) share price leapt 12% on US patent news today
• 2 top ETFs that could be buys in December 2021
• Could rumours over a Westpac (ASX:WBC) mega-merger ever become facts?

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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The S&P/ASX 200 Index (ASX: XJO) had a pretty poor day on Thursday, closing 0.28% down to 7,384.50. But one ASX 200 share left the index in the dust. That was none other than AGL Energy Limited (ASX: AGL).

Yes, AGL shares went up by a very healthy 4.66% on Thursday to finish the session at $5.84. This means the AGL share price is now trading 14.5% above its 20-year low of $5.10, which it descended to back on 16 November.

A partnership with Fortescue Future Industries?

So why did AGL shares have such a robust day? Especially in the face of an anaemic broader market?

Well, there was no news or announcements out of AGL today, so we can’t say for sure. However, these gains could possibly be linked to the news out yesterday.

As we reported, AGL told investors that it has signed a memorandum of understanding (MOU) with Fortescue Future Industries. This could result in AGL transforming its Liddell and Bayswater coal-fired power stations into green hydrogen hubs.

The MOU will result in a 12-month feasibility study which will “map key operational and commercial plans for the project”.

Fortescue Future Industries is the hydrogen venture started by Fortescue Metals Group Limited (ASX: FMG) boss Dr Andrew Forrest AO. It aims to produce 15 million tonnes of green hydrogen annually by 2030 using renewable energy.

AGL aims to close Liddell and Bayswater by 2023 and 2025 respectively. In their place, AGL is hoping to use renewable energy and large-scale batteries — ideally in conjunction with Fortescue Future Industries.

AGL share price snapshot

AGL’s long-suffering shareholders will no doubt welcome today’s price gains. AGL has seen its market capitalisation decimated over the past 5 years. This has occurred due to poor energy market profitability and concern over AGL’s emissions-intensive power generation assets.

Despite the recent rally, the AGL share price is still down a nasty 51.9% year to date in 2021. It’s also down close to 80% from the all-time highs of roughly $28 a share that we saw back in 2017.

At the current AGL share price, the company has a market capitalisation of $3.84 billion with a trailing dividend yield of 11.15%.

The post Why did the AGL share price outperform the ASX 200 today? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
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• ASX 200 (ASX:XJO) midday update: Sydney Airport takeover update, Santos falls
• 5 things to watch on the ASX 200 on Thursday
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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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The Argenica Therapeutics Ltd (ASX: AGN) share price was rocketing today after the company released positive news on a US patent.

The biotechnology company’s shares were up 12.36% at the close, trading at 75 cents.

Argenica is working on new therapeutics to protect the brain after a patient suffers a stroke and other brain injuries.

Why is the Argenica share price up today?

Investors appeared to welcome news the company will be granted a US patent for its lead drug candidate ARG-007.

Argenica said this meant it would be able to use ARG-007 to treat people with stroke, traumatic brain injury and hypoxic-ischaemic encephalopathy (HIE). HIE is a condition that arises from not having enough oxygen or blood flow to the brain.

Argenica now plans to spearhead the drug’s commercialisation in the lucrative United States market.

The company advised it was given official “notice of allowance” for the patent, with the patent being formally granted within months.

The patent claim also covers the drug’s use for other diseases including multiple sclerosis, Parkinson’s disease, Huntington’s disease and epilepsy.

Comment from management

Argenica CEO Dr Liz Dallimore welcomed the announcement, saying:

The granting of this patent will strengthen our ability to enter into commercial negotiations with US pharmaceutical companies in the future.

The allowance of the claims in Argenica’s US patent are essential to potentially commercialising ARG-007 in our lead applications of stroke, TBI and HIE in the US.

Argenica Therapeutics share price snapshot

The Argenica share price has shot up in 2021, up 275%. The company listed on the ASX in June.

Over the past month, Argenica shares are up 50%. The company has a market capitalisation of about $35 million based on the current share price.

The post Argenica (ASX:AGN) share price leapt 12% on US patent news today appeared first on The Motley Fool Australia.

More reading

• 2 top ETFs that could be buys in December 2021
• Could rumours over a Westpac (ASX:WBC) mega-merger ever become facts?
• Here’s why the Galan Lithium (ASX:GLN) share price popped today
• These were the top performing ASX cannabis shares in November
• Here are the top 10 ASX shares today

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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Exchange-traded funds (ETFs) could be smart picks in December 2021 for the long-term.

ETFs can be very effective investment vehicles to get exposure to the stock market. Some ETFs are focused on a particular share market, like Vanguard Msci Index International Shares ETF (ASX: VGS).

But there are others that provide more specific exposure and have historically produced better returns:

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF provides investors with access to a range of businesses involved with cybersecurity. In total, there are 36 positions in the portfolio.

Some of those businesses are large companies like Palo Alto Networks, Cisco Systems, Okta, Crowdstrike, Cloudflare, F5 Networks, Mimecast and Verisign. There are also smaller ones like Tufin, Ribbon Communications and Zix.

BetaShares says that worldwide spending on cybersecurity is predicted to increase to almost US$250 billion by 2023. This ETF provides access to the leading companies who are working to reduce the impact of cybercrime globally.

The investment fund provider notes that there are very few pure play cybersecurity businesses on the ASX, so this ETF is a way to get that exposure.

It comes with an annual management fee cost of 0.67%. After fees, the Betashares Global Cybersecurity ETF has returned an average of 22.6% per annum over the last five years. However, past performance is not a reliable indicator of future performance.

Over 90% of the portfolio is based on US-listed businesses. The other countries with noticeable allocations are: Israel, Japan, France and India.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This ETF has a focus on quality US companies that Morningstar believes have sustainable competitive advantages, or wide economic moats.

The target companies must be trading at attractive prices relative to Morningstar’s estimate of fair value to be added to the portfolio. Those valuations are reached after Morningstar’s “rigorous” equity research process.

At 7 December 2021, this ETF had 50 positions. The ones with weightings of more than 2.5% were: Berkshire Hathaway, Constellation Brands, Salesforce, Blackbaud, Corteva, Aspen Technology, Alphabet, Tyler Technologies, Wells Fargo, Microsoft and Cheniere Energy.

For the moat rating, Morningstar looks at the 1,500 companies under its coverage and decides whether those businesses have sustainable competitive advantages that allow the company to generate positive economic profits for investors over an extended period of time. Only 14% had a wide moat rating.

To earn a wide moat rating, a company must (with near certainty) be able to generate excess normalised returns in 10 years from now. Also, excess normalised returns must, more likely than not, be positive 20 years from now.

For this ETF, the duration of forecast economic profit is far more important than the absolute magnitude. For example: “If a high-flying tech company is a first-mover in offering a popular, innovative product or service, it might quickly achieve very high returns on invested capital. However, if there is no moat source, such as intellectual property, preventing competitors from replicating that product or service”, then the business wouldn’t get a wide moat rating.

It has an annual management fee of 0.49% and has produced average returns per annum of 18.4% over the last five years. Again, past performance is not a reliable indicator of future performance.

The post 2 top ETFs that could be buys in December 2021 appeared first on The Motley Fool Australia.

More reading

• Boost your portfolio in 2022 with these popular ASX ETFs
• How did the Betashares Global Cybersecurity ETF (ASX:HACK) perform in November?
• 3 excellent ETFs for ASX investors in December
• Why Zip (ASX:Z1P) and this ASX tech share could be buys
• 2 fantastic ETFs generating strong returns for ASX investors

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. owns and has recommended BETA CYBER ETF UNITS and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF and Vanguard MSCI Index International Shares ETF. 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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Rumours on the grapevine have persisted around a potential merger between Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

The big four have stood the test of time as the cornerstone of Australia’s financial system. In fact, the big four is a protected structure by the Australian Government under the longstanding “four pillars policy”. However, the important distinction is that its government policy, not legislation.

For this reason, whispers of ANZ and Westpac exploring a merger have sparked speculation among investors. But does any potential deal hold water?

Is there merit in a Westpac merger on the ASX?

Over the years, the four pillars policy has received criticism for being outdated. This government policy acts as a blockade against any of the four major banks merging. The point of it is to maintain a competitive industry within banking for the sake of consumers. However, the policy is not law — which means there is always a slight possibility.

Word on the street is ANZ, Westpac, and National Australia Bank Ltd. (ASX: NAB) are feeling out their options. Although, these rumours have not been confirmed. Regardless, the question of whether a Westpac/ANZ merger would make sense is an interesting one.

According to Jefferies bank analyst Brian Johnson, a mega-merger of Westpac and ANZ would better serve the latter rather than the former. More importantly, the turbulence created by such a deal would mostly benefit the Commonwealth Bank of Australia (ASX: CBA).

If this was to play out, the exchange ratio would favour ANZ, but disruption would add impetus to CBA’s operational outperformance

Brian Johnson, Jefferies

In explaining this reason, Johnson mentioned how cost synergies often don’t go to plan in the banking industry. For instance, Westpac’s acquisition of St George Bank was paraded for the potential to integrate IT systems and reduce costs, the reality ended up being far different.

The attempted simplification resulted in a more complex beast, and 13 years later, the home lending systems are still separate.

What’s the odds?

A merger involving Westpac on the ASX is unlikely in the eyes of the lead banking analysts for a couple of reasons. Firstly, the four pillars policy remains in place, with the government likely to uphold it if it needed to. The patchy track record of the banks’ behaviour as uncovered by the banking royal commission further enforces this.

Secondly, the Australian Prudential Regulation Authority (APRA) would likely oppose a merger. Johnson believes APRA would be wary of its impaired ability to contain the damage if a bank became stressed. The regulatory body would possibly struggle to force a strategic merger if one of the big four were to be removed.

Compared to the other big banks on the ASX, Westpac’s share price has underperformed since the beginning of the year.

The post Could rumours over a Westpac (ASX:WBC) mega-merger ever become facts? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns Commonwealth Bank of Australia. 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 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 Galan Lithium Ltd (ASX: GLN) share price spent a day in the green after the company announced a positive economic study.

After touching an intraday high of $1.62 this morning, the Galan share price has since retreated and was swapping hands at $1.52, up 0.66% at the close of trade today.

Galan is a mining company exploring for lithium on the Humbre Muerto basin in Argentina.

What did Galan Lithium announce today?

In today’s release, the company detailed its economic assessment of its Hombre Muerto West Project in Argentina. The company reports its economic predictions in US dollars.

The company has upgraded the net present value of the company by 120% from US$1 billion to US$2.2 billion. This is a whopping $3.1 billion in Australian dollars.

Galan Lithium also predicted an average annual earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$287 million, up 65%.

The study was based on an average lithium price of US$18,594 per tonne.

Looking ahead, Galan Lithium expects to perform more drilling and will soon appoint an independent engineering firm to commence a definitive feasibility level study.

Management comment

Speaking on the announcement, managing director Juan Pablo Vargas de la Vega said:

Galan remains excited about the potential value add for our shareholders once we enter the lithium market with prices expected to be +US$25k/t LCE.

Our projects would now be among the lowest cost of any future producers in the lithium industry, due to their high grade and low impurity setting, green credentials and a low carbon footprint. Galan is excited to be a part of the solution to the global decarbonisation story.

Galan Lithium share price snap shot

The Galan Lithium share price has soared 334% in the past 12 months and is up almost 294% this year to date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 10% in the past year.

The share price over 52 weeks has ranged from as low as 29 cents per share to as high as 1.73 cents apiece.

Based on its current share price, Galan Lithium commands a market capitalisation of roughly $446 million.

The post Here’s why the Galan Lithium (ASX:GLN) share price popped today appeared first on The Motley Fool Australia.

More reading

• Galan Lithium (ASX:GLN) share price leaps 9% on ‘excellent’ project results

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 cannabis shares had a difficult month in November, with most majors finishing deep in the red.

Scrolling through the extensive list of Aussie cannabis stocks, it’s abundantly clear that the sector experienced a wide sell-off. This coincided with weakness in the overall ASX healthcare sector.

We’ve sifted through the ASX cannabis basket to identify the diamonds in November’s rough.

These 3 ASX cannabis shares were the top performers over the month.

Incannex Healthcare Ltd (ASX: IHL)

Shares in medicinal ASX cannabis company Incannex Healthcare lit up in November, finishing 41% higher at a new 52-week peak.

Investors responded positively to a suite of updates from Incannex. Most notable was an ethics committee’s approval of the company’s Phase 2a trial examining the effects of psilocybin on primary anxiety disorder.

Incannex is chasing a remedial breakthrough for this complex mental health ailment, which typically responds poorly to conventional treatments. Psychedelics such as psilocybin are gaining recognition as a potential primary line of defence to treat and manage these kinds of disorders without overloading patients with a cocktail of tablets.

Aside from this, the company successfully raised more than $17.5 million via an options exercise program. This beefed up the balance sheet and secured ample liquidity to fund its clinical trial programs.

The Incannex share price is up 246% this year to date. It finished Thursday’s session at 52.5 cents, up 6.06% for the day.

Cronos Australia Ltd (ASX: CAU)

Cronos Australia aims to become a leading health and wellness company in the Asia Pacific through the creation and distribution of premium medical and consumer cannabinoid products and services.

It currently distributes its Adaya and Peace Naturals range of medicinal cannabis labels throughout Australia. It also owns more than 75% of another medicinal cannabis company, Cannadoc Health Pty Ltd.

Cronos shares exhibited a steady climb in November despite a lack of price-sensitive news from the company. Investors opened long positions in the ASX cannabis player and sent its share price 23.5% higher over the month. That’s a 61.5% gain since 4 January as the stock reclaims territory lost in 2020 due to various challenges.

Cronos shares finished Thursday’s session at 19 cents, down 5% for the day.

Emyria Ltd (ASX: EMD)

The Emyria share price was a clear outperformer in November. It closed the month with a 98% gain and nudged past its 52-week high.

The big upside move in Emyria’s share price came after it announced a strategic investment on 22 November. The investment was made by one of Australia’s largest private investment groups, Tattarang.

The name might sound familiar because Tattarang is owned by Dr Andrew ‘Twiggy’ Forrest AO. He’s also the chairman and founder of ASX 200 giant Fortescue Metals Group Limited (ASX: FMG).

The $5 million investment was made via a share placement at a price of 25 cents. This gives Tattarang a 7.3% stake in the ASX cannabis company.

Emyria will allocate the funds to its synthetic cannabinoid programs with the Therapeutic Goods Administration (TGA) and the US Food and Drug Administration (FDA).

The company will also allocate some money to the development of its novel MDMA-analogue treatment alongside the University of Western Australia.

This ASX cannabis share may have given up some of its November gains already but its share price is still 280% higher this year to date. The company’s shares closed at 38.5 cents on Thursday, down 3.75% for the day.

The post These were the top performing ASX cannabis shares in November appeared first on The Motley Fool Australia.

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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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