The Osteopore Ltd (ASX: OSX) share price is surging today after the company announced it has signed a new research deal.

The medical technology company’s share price soared 33% higher to 28 cents in early trading, before retreating slightly to 26 cents apiece at the time of writing. That’s still 23.81% higher than the previous closing price.

Osteopore engineers and commercialises products that regenerate the tissues in the bones.

What did the company announce today?

In today’s release, Osteopore advised it has signed an agreement for an $18.7 million project with two major research institutes in Singapore.

The company will work with the National Dental Research Institute and the Agency for Science, Technology and Research to develop jaw implants.

As part of the study, the company said it would test some of its patented products for potential use in dental applications.

Osteopore would use the research results to help develop jaw implants that would ultimately simplify future dental procedures.

If this research proved successful, the company said it could tap into a global market worth an estimated $1.26 billion.

Osteopore will commit $1.8 million towards the project over three years.

Management comment

Welcoming the announcement, Osteopore CEO Goh Seng said:

We are very thankful to participate and lead this grant and for the support of all the institutions involved in this research.

We strongly believe in developing and commercialising regenerative technologies for the well-being of patients.

Company chair Mark Leong added:

We are constantly developing new and better applications for our technology as well as growing addressable markets. This partnership project is a significant step for Osteopore.

Osteopore share price snap shot

Osteopore investors have experienced a turbulent year in 2021, falling 50% since January. In the past 12 months, the Osteopore share price has also dropped by around 50%.

Osteopore reached a yearly high of 53 cents in April, before dropping to a yearly low of 20 cents last week.

The company’s total market capitalisation is around $30 million, based on the current share price.

The post Osteopore (ASX:OSX) share price rockets 24% on major new deal appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Here’s why the Neometals (ASX:NMT) share price is surging 6% today
• Johns Lyng (ASX:JLG) shares surge 19% out of trading halt. Here’s why
• Why are ASX ETFs getting so much attention today?
• What is the better buy: Bitcoin vs. Ethereum

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.

from The Motley Fool Australia https://ift.tt/3lYBVut

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.

Many investors are weighing their options in the cryptocurrency market these days. The two biggest names in the sector draw more attention and analysis than most. We asked two of our cryptocurrency writers to determine whether Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: ETH) would be the better choice for an individual investor today.

Read on to see the pros and cons of picking one of these household names over the other.

Bigger is just better this time

Anders Bylund (Bitcoin): Most investors in the cryptocurrency space are probably best served by holding both some Ethereum and some Bitcoin. But if I had to choose just one of these sector giants, it would have to be Bitcoin. There are two main reasons for this conclusion.

First, many cryptocurrencies are trying to do the same thing as Ethereum, and some of these alternatives come with significant technology improvements. I count three Ethereum rivals among the top 12 cryptocurrencies by market cap.

Solana (CRYPTO: SOL) runs through smart contract transactions much faster than Ethereum. So do Avalanche (CRYPTO: AVAX) and Cardano (CRYPTO: ADA). All three also use more environmentally friendly blockchain structures, giving decentralized app developers another reason to select a different smart contract platform over the leading Ethereum solution.

Taken together, this trio is already worth 25% of Ethereum’s total market value. All have also outperformed Ethereum in 2021, often by a large margin:

Ethereum Price data by YCharts

Bitcoin has rivals but the simpler value-storage and money-moving functions of this cryptocurrency leave less room for disruptive challengers. Add up the five largest digital currencies not named Bitcoin in this part of the cryptocurrency sector, and you get a total market value of $107 billion — a mere 12% of Bitcoin’s dominant footprint.

That’s where my second reason to prefer Bitcoin comes in. The cryptocurrency industry’s grandfather holds an important first-mover advantage.

The long-term winners in this subsector must work to gain acceptance by (deep breath): consumers, governments, banks, investment managers, financial services, retailers, subscription services, charitable institutions, street-corner acrobats, and birthday party entertainers. And more, of course — those are just the most obvious money-handling categories off the top of my head.

Bitcoin is already working its way into most of these segments (except the party clowns, who may drag their color-spangled feet more than most). Other digital currencies are trying to follow suit but Bitcoin is setting the pace for the industry as a whole. For example, any retailer that accepts Litecoin or Dogecoin is guaranteed to take Bitcoin, too. And that’s not a two-way street.

So, Ethereum faces massive competition in a sector where better functionality is more important than tradition and early adoption. Bitcoin has fewer and smaller rivals in a target market where a single early winner could very well make any other solutions irrelevant in the long run. That’s an easy choice, assuming I can only pick one name.

Trying harder

Keith Speights (Ethereum): Years ago, Avis Budget (NASDAQ: CAR) was the No. 2 rental car company. It ran a highly successful marketing campaign centered on the theme: “Why go with us? We try harder.” I think this slogan is applicable to Ethereum.

Ethereum ranks as the No. 2 cryptocurrency based on market cap behind only Bitcoin. But it’s rapidly gaining ground. So far this year, Ethereum has outperformed Bitcoin by close to a sevenfold factor. Developers are choosing the blockchain platform because of its support of smart contracts that support non-fungible tokens (NFTs) SEO hubs and a long list of decentralized apps.

I look for Ethereum to pick up even more momentum in 2022. The second and third phases of a massive upgrade (called Ethereum 2.0, or Eth2) are planned for next year. This upgrade will make Ethereum much faster and much cheaper than it is today. All of the advantages that have attracted developers and buyers will remain intact, though.

Maybe Ethereum won’t bump Bitcoin out of the top spot anytime soon. But because its development community is trying harder, I expect it will be a bigger winner than Bitcoin will be.

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

The post What is the better buy: Bitcoin vs. Ethereum appeared first on The Motley Fool Australia.

More reading

• Why cryptocurrencies like Bitcoin, Polygon, and Terra fell today
• Bitcoin, Ethereum, and Cardano continue to recover from late-week selloffs
• Here’s what crypto investors need to know about the metaverse
• Bitcoin (CRYPTO:BTC) sinks again. Who’s going to catch that falling knife?
• Is the RBA about to join the digital currency revolution?

Anders Bylund doesn’t play favorites. He owns Bitcoin, Cardano, Ethereum, Litecoin, and Solana. Keith Speights has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

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

from The Motley Fool Australia https://ift.tt/3GEPQgS

It doesn’t seem like there are too many days where exchange-traded funds (ETFs) aren’t getting a lot of attention on the ASX these days. As we’ve discussed many times on the Fool recently, 2021 has only seen the ETF sector continue to balloon to new highs, both in terms of funds under management (FUM) and in raw numbers. Today, it seems, is no different.

ETFs are the talk of the investing town again this week. It comes after a new report in the Wall Street Journal (WSJ) finds that global ETF inflows over 2021 have topped US$1 trillion for the first time ever. That’s already significantly above the US$735.7 billion of inflows that we saw across all of 2020 (and there’s still more than a fortnight of 2021 to go!).

Value of global ETFs doubles in 2 years

Global ETF assets, including ASX ETFs, now reportedly stand at close to US$9.5 trillion which the WSJ notes is “more than double where the industry stood at the end of 2018”. Staggering stuff. Most of those funds have found their way to low-cost index funds run by Vanguard, BlackRock (iShares) and State Street Corp. These providers reportedly control “more than three-quarters of all U.S. ETF assets”. It has certainly helped that the flagship US S&P 500 Index (INDEXSP: .INX) has risen more than 27% year to date.

Head of ETF and index product mangement at Vanguard Rich Powers told the publication: “You have this historical precedent where you have tumultuous equity markets, and more and more investors have made their way to index products.”

But that’s not to say non-index ETFs are losing popularity. The US alone reportedly saw a record 3800 ‘active ETFs’ launch. These ETFs act more like managed funds than index funds, actively selecting stocks for outperformance potential. Investors sent US$84 billion to these ETFs in 2021 so far. That’s 10% of all US ETF inflows, up from 8% last year.

But a warning for investors who might find these funds attractive. The report confirms that “roughly 10% of the 371 U.S. active ETFs with full-year performance data are beating the S&P 500”. Additionally, “more than a third are flat or negative for 2021”.

So it’s pretty evident that 2021 has been an exceptional year for ETFs across the board. Now for 2022, and whatever that brings…

The post Why are ASX ETFs getting so much attention today? appeared first on The Motley Fool Australia.

More reading

• December has been a great month so far for the NAB (ASX:NAB) share price
• Resimac (ASX:RMC) share price leaps 13% on share buyback. Here’s what you need to know
• PolyNovo (ASX:PNV) share price tipped to double in value
• Invested in AFIC (ASX:AFI) shares? Here’s what to watch in 2022
• Brickworks (ASX: BKW) share price lifts 3% on record forecast property earnings

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.

from The Motley Fool Australia https://ift.tt/33pPKLW

The National Australia Bank Ltd (ASX: NAB) share price is relishing the holiday period, gaining 5% since the start of December. That’s despite the company releasing no news to the ASX.

At the time of writing, the NAB share price is $28.68, a 0.17% gain today.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 2.1% so far this month.

The S&P/ASX 200 Bank Index (ASX: XBK) has gained 4.8% over the same period.

Let’s take a look at what’s been going on with NAB lately.

NAB share price gains in December despite FSU findings

The NAB share price has surged higher this month despite the release of a damning report from the Finance Sector Union. It also warned of potential Federal Court action.

Earlier this month, the union released the findings of a survey sent to NAB employees questioning their working hours.

The survey found 93% of Group 3 NAB employees work more than 38 hours a week. Another 79% of employees reported working on their weekends, while 87% stated the excessive hours had caused an increase in stress and anxiety.

NAB executive of people and culture Susan Ferrier addressed the report in a note to employees, stating:

Our first priority is the health and wellbeing of our people and we also believe that NAB colleagues should be fairly paid for the work that they do. There is no expectation that NAB colleagues work unreasonable additional hours…

We take seriously any instance where workload impacts a colleague’s health and life outside work.

Additionally, a more positive report on work at NAB was released by the Reserve Bank of Australia (RBA) last week.  

The report marked the conclusion of Project Atom. The project saw NAB, Commonwealth Bank of Australia (ASX: CBA), Perpetual, ConsenSys, and the RBA engaging in collaborative research.

Project Atom investigated the potential of a wholesale form of central bank digital currency using distributed ledger technology.

Including its December gains, the NAB share price is 27% higher than it was at the start of 2021. However, it is still more than 3% lower than it was a month ago.

The post December has been a great month so far for the NAB (ASX:NAB) share price appeared first on The Motley Fool Australia.

More reading

• Could the CBA share price peak have been and gone?
• What is the outlook for the NAB (ASX:NAB) share price in 2022?
• 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

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.

from The Motley Fool Australia https://ift.tt/3IHayyx

The Resimac Group Ltd (ASX: RMC) share price is racing higher today, up 13.15% at time of writing to $1.85 per share.

But that price doesn’t appear to please the Board of the non-bank lending company.

Below, we take a look at the details of the Board’s share buyback plans.

What are the Board’s share buyback intentions?

The Resimac share price is off to the races after the company reported it will undertake an on-market share buyback.

Why?

According to the release, “The Board considers that the company’s current share price does not accurately reflect the underlying value of the company’s assets and the share buy-back represents an opportunity to add value to the remaining shares on issue.”

Resimac said it plans to start its share buybacks on 29 December and continue for up to 12 months. It will instruct Bell Potter Securities, its broker, to buy shares “only where the position maximises the benefits of the share buy-back to the company”.

Of the 408.79 million ordinary shares outstanding, Resimac intends to buy back a maximum of 40.8 million, or 10%.

The shares will be bought back for a cash consideration in Aussie dollars. But the price to be paid remains to be determined.

The buyback does not require shareholder approval to move forward.

Resimac instructed its shareholders that it cannot guarantee it will acquire all, or indeed any, of the shares under its announced buyback program.

Resimac share price and company snapshot

Despite a strong showing in intraday trade today, the Resimac share price remains down 14% in 2021. That compares to a year-to-date gain of 13% posted by the All Ordinaries Index (ASX: XAO).

Over the past month, shares in Resimac have edged up 3%.

The company was distinguished as Non-Bank of the Year by the Australian Mortgage Awards 2020. It originates, services and funds “prime, non-conforming residential mortgages and asset finance products” in Australia and New Zealand.

The post Resimac (ASX:RMC) share price leaps 13% on share buyback. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• PolyNovo (ASX:PNV) share price tipped to double in value
• Invested in AFIC (ASX:AFI) shares? Here’s what to watch in 2022
• Brickworks (ASX: BKW) share price lifts 3% on record forecast property earnings
• Charter Hall (ASX:CHC) share price pops 5% to record high on earnings upgrade
• What’s the outlook for ASX biotech shares in 2022?

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.

from The Motley Fool Australia https://ift.tt/3s0jE3q

The PolyNovo Ltd (ASX: PNV) share price has continued its poor run on Monday.

In afternoon trade, the medical device company’s shares are down a further 1% to $1.36. This means the PolyNovo share price has lost almost two-thirds of its value in 2021.

This poor form has been driven by a weaker than expected performance in FY 2022 and the unceremonious exit of its CEO last month.

All in all, this has attracted high levels of short interest, making PolyNovo shares one of the most shorted on the Australian share market.

Where next for the PolyNovo share price?

While short sellers clearly believe the PolyNovo share price can go even lower from here, there is reason for shareholders to be a little optimistic.

According to a recent note out of Macquarie Group Ltd (ASX: MQG), its analysts are sticking with the company.

That note reveals that Macquarie has an outperform rating and $2.85 price target on the company’s shares.

Based on the current PolyNovo share price, this implies potential upside of greater than 100% for investors over the next 12 months.

Although Macquarie acknowledges that PolyNovo is underperforming its expectations so far in FY 2022, which has led to a sharp reduction in its earnings estimates, it remains positive on the future.

This is due to its belief that PolyNovo is well-positioned for growth over the medium to long term thanks to the NovoSorb product. Particularly as the company looks to expand its use into other areas such as the hernia repair and breast augmentation markets.

These are much larger opportunities than its current target market of dermal scaffolds (worth $1.5 billion per annum) and are estimated to be worth US$3 billion per annum each at present. Overall, this gives the company a $7.5 billion per annum market opportunity to grow into in the future if all goes to plan.

Though, judging by the PolyNovo share price performance, investors aren’t feeling overly confident about its prospects at this point. Time will tell whether short sellers or Macquarie made the right call.

The post PolyNovo (ASX:PNV) share price tipped to double in value appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• This fundie shorted Polynovo (ASX:PNV) shares in 2019. Here’s how much he would have made
• Why Appen, Cooper Energy, PolyNovo, and Sigma shares are falling
• These were the 5 worst performing ASX 200 shares in November
• Here’s why the PolyNovo (ASX:PNV) share price is attracting increased short interest

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 POLYNOVO FPO. 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.

from The Motley Fool Australia https://ift.tt/3IVfikv

The Australian Foundation Investment Co. Ltd (ASX: AFI) share price has had a pretty good start to this week’s trading session. At the time of writing, Australian Foundation Investment Co (AFIC for short) shares are up a healthy 0.48% at $8.39 a share. That’s slightly underneath the S&P/ASX 200 Index (ASX: XJO), which is currently up 0.54%. 

2021 has been kind to AFIC shares as well. Year to date so far, this Listed Investment Company (LIC) is up 15%,  besting the ASX 200, which has gained a still-impressive 12% year to date. But now that we are nearly through with 2021, what should investors watch out for in 2022 with their AFIC shares?

What does 2022 hold for AFIC shares?

Well, let’s take a look at AFIC’s portfolio to start with and see what we see.

So AFIC has recently released its ‘Top 25 Investments’ list for its portfolio as of 30 November. It tells us that AFIC’s top holdings are as follows:

1. Commonwealth Bank of Australia (ASX: CBA)
2. CSL Limited (ASX: CSL)
3. BHP Group Ltd (ASX: BHP)
4. Macquarie Group Ltd (ASX: MQG)
5. Wesfarmers Ltd (ASX: WES)

Following these 5 shares, we have Transurban Group (ASX: TCL), Westpac Banking Corp (ASX: WBC), and National Australia Bank Ltd. (ASX: NAB).

So as you can see, AFIC’s top holdings are not too different to those of the ASX 200. So if we want to plot AFIC’s potential course through 2022, we need to start with these shares. And since they are not too different to the ASX 200’s, we can say that whatever the ASX 200 does next year will likely determine how AFIC shares perform overall.

But remember, AFIC also has a small international shares portfolio that we discussed a few months ago. AFIC doesn’t tell us which of these shares it holds month to month. But as of its FY2021 annual report, it included Apple Inc (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), Mastercard Inc (NYSE: MA), McDonald’s Corp (NYSE: MCD), PayPal Holdings Inc (NASDAQ: PYPL), Netflix Inc (NASDAQ: NFLX) and Starbucks Corporation (NASDAQ: SBUX). These shares likely remain a small part of AFIC’s portfolio. But they could still give this LIC an edge if these companies enjoy a lucrative 2022.

Don’t forget about the NTA

The final factor to mention is AFIC’s present share price premium to its underlying assets. The company tells us that its net tangible assets (NTA) per share was $7.55 as of 30 November. Since AFIC shares closed at $8.25 each on 30 November and are currently asking for $8.39, we can conclude that AFIC shares are trading at a significant premium to their underlying value right now (around 10%).

It’s likely that for AFIC shareholders, this premium will need to be maintained for AFIC to at least match the ASX 200’s returns. Say if the ASX 200 and AFIC’s share portfolio hypothetically both return 10% in 2022. If AFIC’s NTA premium falls away and AFIC’s share price returns to its NTA, its share price could go nowhere.

So we don’t yet know how the AFIC share price will go in 2022. But how the ASX 200 itself fares next year will give us a good indication of how AFIC shares will perform.

The post Invested in AFIC (ASX:AFI) shares? Here’s what to watch in 2022 appeared first on The Motley Fool Australia.

More reading

• Why has the AFIC (ASX:AFI) share price had such an average start to December?
• AFIC (ASX:AFI) aims to grow its dividends faster than inflation. Is it delivering?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns Mastercard, McDonald’s, National Australia Bank Limited, and Starbucks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Amazon, Apple, Macquarie Group Limited, Mastercard, Netflix, PayPal Holdings, Starbucks, 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.

from The Motley Fool Australia https://ift.tt/3m1uQcx

Shares in building products manufacturer Brickworks Ltd (ASX: BKW) are trading 3.4% higher on the day at $24.66 apiece.

The Brickworks share price is catching bids as investors respond positively to a company announcement regarding its property.

Brickworks expects record property earnings in 1H 2022 and has purchased 121 hectares of land at Bringelly, in southwest Sydney, according to the announcement.

Here are the details.

Record property earnings expected next year

Brickworks advised it expects to report record property earnings in the first half of financial year 2022, with property earnings before interest and tax (EBIT) in the range $290-$310 million. That’s a substantial gain of 15%-22.5% on its FY21 EBIT.

The company also announced that it has executed an unconditional contract for the purchase of 121 hectares of land in southwest Sydney.

It says the land will be used as a clay resource to support the Austral Bricks operations in Sydney, replacing the existing clay resource at Oakdale East as a result.

The purchase ensures that brick operations are not adversely impacted by the release of land for property development, the company says.

Brickworks has seen “strong demand and sustained growth” in the value of its property trust over a number of years. The company says the COVID-19 pandemic has only fuelled this growth by accelerating industry trends towards online shopping.

This has seen the company benefitting from “the increasing importance of well-located distribution hubs and sophisticated supply chain solutions”.

To this end, the construction of the state-of-the-art Amazon facility at Oakdale West is due to reach practical completion at the end of December.

This completion, together with other facilities at Oakdale South, will result in “significant development profits, also included in the record first-half earnings”, according to the company’s release.

After a recent independent revaluation, the company realised an average capitalisation rate compression of 50 basis points to 3.6% across leased assets within the property trust.

Management commentary

Speaking on the update, Brickworks Managing Director Lindsay Partridge said:

Given the strong industrial property demand and increasing value of our land at Oakdale, our Austral Bricks plants in western Sydney are currently undergoing a major renewal and rationalisation program. This is highlighted by our new face brick plant at Horsley Park, currently under construction. The completion of this plant in around 12 months’ time, will allow brick operations to be consolidated at the Horsley Park Plant 1 and 2 site, and the remaining 75 hectares of land to be released at Oakdale East, where Plant 3 is located.

Partridge continued:

From a longer-term perspective, the acquisition replenishes our land bank, and given its strategic location in close proximity to the western Sydney International Airport, has future development potential once operational needs are exhausted. Brickworks has a long-standing and successful business model that supports the purchase of land assets on the suburban fringe, used for many decades in our brick making operations. History shows, that as urban development expands, this land has the potential to increase in value through rezoning, thus facilitating transfer to the Property division for development.

Brickworks share price summary

In the last 12 months, the Brickworks share price has gained more than 30% after rallying 28% this year to date.

It has gained almost 6% in the last month of trading and is up around 7% in the last week.

Each of these returns has outpaced the benchmark S&P/ASX 200 Index (ASXL XJO)’s return of around 11.5% in the last year.

The post Brickworks (ASX: BKW) share price lifts 3% on record forecast property earnings appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• Top broker tips 30% upside for the Brickworks (ASX:BKW) share price. Here’s why
• 2 ASX dividend shares that could provide rock-solid income
• Why is the Brickworks (ASX:BKW) share price struggling this week?
• 5 things to watch on the ASX 200 on Tuesday

The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks. The Motley Fool Australia owns and has recommended Brickworks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3GxUz3Y

The Charter Hall Group (ASX: CHC) share price is moving into uncharted territory today, reaching a new all-time high. The company provided upbeat news to the ASX, which appears to have rallied investors into snapping up Charter Hall shares.

At the time of writing, the property company’s shares are swapping hands for $20.74, up 5.07% after earlier touching a record high of $20.76.

What did Charter Hall announce?

The Charter Hall share price is lifting after the company announced an upgraded FY22 earnings guidance and FUM growth update.

In its release, Charter Hall advised its property portfolio will have a net value of around $3.5 billion by 31 December. The group routinely assesses its property platform every six months through independent auditors, giving a clearer picture of its assets.

In addition, Charter Hall noted that the consortium of which it is the lead manager has unconditionally included ALE Property Group (ASX: LEP). A court approval to complete the scheme of arrangement is set for 17 December.

Earlier this year, Charter Hall and industry superannuation fund, Hostplus partnered to take over ALE Properties for $1.68 billion. Post-transaction, Charter Hall Long WALE REIT (ASX: CLW) and Hostplus would each hold a 50% interest in the acquired business.

Together, the company expects valuations and unconditional transaction activity, and group funds under management (FUM) to come in at $61.3 billion.

Furthermore, Charter Hall stated as a result of the increased FUM, performance fees would also rise during the fiscal year. As such, the group is forecasting FY22 operating earnings per security guidance of no less than 105 cents per security. This is the second time within the last couple of months that the company has upgraded its annual earnings guidance.

Management commentary

Charter Hall managing director and group CEO David Harrison touched on the company’s progress, saying:

It is pleasing to see the hard work we have put into curating and growing high quality portfolios for our fund investors over many years has delivered excellent financial returns, well above expectations and performance fee hurdles.

The resultant performance fees, whilst positive for the Group, also highlights the outperformance delivered for investors given fund investors typically receive 80% of excess total returns above the hurdles established at inception of the funds and partnerships.

About the Charter Hall share price

Over the past 12 months, the Charter Hall share price has gained 44% in value, with year-to-date treading at 40% higher. The company’s shares have continued on an upwards growth trajectory in 2021, hitting an all-time high of $20.76 today.

On valuation grounds, Charter Hall presides a market capitalisation of around $9.65 billion, with 465.78 million shares outstanding.

The post Charter Hall (ASX:CHC) share price pops 5% to record high on earnings upgrade appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• Three quality ASX shares likely to outperform in 2022: fund manager

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.

from The Motley Fool Australia https://ift.tt/3yhSTZD

ASX biotech shares provided a mixed bag of results in 2021 with many names underperforming their benchmarks while others flourished amid COVID-19 related tailwinds.

Whilst many Aussie biotechs came in behind the pack this year, the S&P/ASX 300 Pharmaceuticals & Biotechnology Index (AXPBKD) has springboarded off its 3-month low in August. It’s climbed almost 9% in that time, indicating strengths in the broad sector.

Now that the effects of the pandemic are starting to diminish, visibility for the Australian biotechnology sector is clearer and several experts have weighed in with their analysis on ASX-listed companies in the space.

So, as we roll on out of 2021 and into the new year, let’s dissect the expert commentary to give investors an outlook on several ASX biotech shares in 2022.

CSL Ltd (ASX: CSL)

Shares in Aussie biotech giant CSL have reclaimed losses sustained earlier in the year and are now up more than 4% off their 3-month low in October.

CSL shareholders have endured their fair share of volatility this year to date, with the comany’s shares trading as low as $248.50 in February and as high as $318 in November.

Despite the wide range, both Morgans and Macquarie are bullish on CSL shares coming into 2022.

Both like CSL’s growth profile, backed by long-term tailwinds in the immunoglobulins (Ig) and plasma collection sectors as the impacts of COVID-19 start to settle.

JP Morgan is less constructive on the company, however, noting that US Ig volumes contracted by 9% in the US, CSL’s major market.

“This is consistent with our expectations (and CSL forecasts) as supply has been constrained by the drop in plasma collections,” the firm says.

Despite this, it expects a recovery to begin in the coming months as plasma collection volumes continue to improve in the US, yet isn’t swayed enough to change its neutral rating on the share.

Whilst Morgans and Macquarie value CSL a buy at $324 and $338 per share respectively, JP Morgan is more conservative and has a $285 price target on its share price.

Nevertheless, in the list of analysts provided by Bloomberg Intelligence, 53% of the group has CSL as a buy. The remaining 47% — or 8 analysts — have it as a hold. There are no sell ratings from this group.

Mesoblast Ltd (ASX: MSB)

Share price returns in regenerative medicine player Mesoblast have been jagged these past few months, trading as high as $1.90 and as low as $1.505 in that time.

Despite the volatility, the Mesoblast share price has actually been trading sideways over the previous 3-month period.

Investors first reacted positively to study readouts on its rexlemestrocel-L product candidate back in November. The label, being developed to treat inflammatory diseases in both adults and children, was shown to exhibit a reduction in cardiovascular mortality, heart attacks, and strokes in a recent clinical trial.

The trial confirmed that a single dose of rexlemestrocel-L in conjunction with the current standard of care reduced the onset of heart attacks or strokes by 65% across the study’s population group.

Bell Potter has Mesoblast as a “speculative buy” and values the company at $3.45 per share, whereas Eidson Investment Research has a $6.35 price target on the company’s share price.

Meantime, Jefferies isn’t convinced and caution investors on the risks of investing in early-stage biotechnology products, valuing Mesoblast at just $1.90 per share.

Given the wide spread in analyst sentiment, it appears judgement of Mesoblast’s outlook in 2022 is mixed. In this case, it’s wise to wait on the company’s earnings to develop a more informed decision on the same.

In the last 12 months, the Mesoblast share price has plunged 63% into the red and is also down more than 24% this year to date.

Telix Pharmaceuticals Ltd (ASX: TLX)

Shares in oncology company Telix have soared to 12-month highs in recent days and now trade at $7.99 apiece at the time of writing.

Telix’s Illuccix imaging platform for prostate cancer has created a wave of momentum in the past few months. This has seen has investors piling in to grab a spot for the ride in 2022.

The company recently advised it had received approval of its marketing authorisation application (MAA) in Europe for registration of Illuccix. This marks the final stage of regulatory assessment for the platform and is an important milestone in launching the offering on a global scale.

It now expects European approval for registration status to be provided no later than 23 March 2022. This is after it had already received regulatory approvals in Australia and potentially the US.

This regulatory momentum had analysts at several investment firms raising their valuations on the company’s shares, such that the consensus price target for Telix is now $8.07.

Wilsons is most bullish on the company. After the updates, it recently raised its price target by 53% to $10.35 and rates the company as a buy.

Meanwhile, Bell Potter also just upgraded its valuation on the stock and sees it fairly valued at $8.30, while Jefferies and Jarden value Telix at $7 and $7.90 respectively.

6 out of the 7 firms from the list of analysts provided by Bloomberg Intelligence have Telix as a buy right now, reaffirming this bullish sentiment on its outlook for 2022.

Similar to the sector’s performance in 2021, it appears the outlook for ASX biotech shares in 2022 is equally as mixed. Of course, there remains the looming threat of COVID-19 in the domain as well.

The post What’s the outlook for ASX biotech shares in 2022? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade
• CSL (ASX:CSL) share price lower after responding to M&A speculation
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week

The author has no positions 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 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.

from The Motley Fool Australia https://ift.tt/3ERzilh