The Firefinch Ltd (ASX: FFX) share price has come out of a trading halt to plummet during late morning trade. This comes after the lithium developer announced an update on its recent capital raise.

At the time of writing, Firefinch shares are down 9.93% to 68 cents apiece.

Firefinch completes placement

One catalyst for today’s fall in the Firefinch share price could be investor concerns over an impending share dilution.

According to its release, Firefinch announced it has received firm commitments for its institutional placement to raise $100 million before costs. The company highlighted that it had strong support from both domestic and offshore institutional investors.

The offer will see approximately 149.3 million new ordinary shares issued at a price of 67 cents each. This represents an 11.3% discount to the last closing price of 75.5 cents on 8 December (before going into a trading halt).

Firefinch will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval.

The proceeds will be used to fast track the production growth at the Morila Gold Mine in Mali (West Africa). The company is targeting more than 100,000 ounces of gold in 2022 and over 200,000 ounces of gold in 2024.

In addition, Firefinch will also allocate funds to facilitate the proposed demerger of the Goulamina Lithium Project into a separate ASX-listed company. Recently, Goulamina was confirmed as being amongst the world’s largest lithium development projects, highlighting the inherent value of the world-class asset.

Settlement of the new shares is expected to occur on 17 December, with allotment scheduled on the next business day.

What did management say?

Firefinch managing director, Michael Anderson commented:

This is a fantastic outcome for Firefinch which speaks to the outstanding growth potential inherent in our assets, the exceptional work our team has done ramping up gold production to date and in completing an updated DFS for Goulamina. We now have a huge opportunity in front of us.

2021 has been a transformational year for the Company and this funding provides a tremendous foundation for further growth as we enter 2022. We are now well funded to deliver on our strategic vision of becoming a West African gold producer of scale, as well as developing the next major lithium project to enter production, ahead of our Goulamina demerger in the new year.

About the Firefinch share price

Despite today’s heavy losses, the Firefinch share price has accelerated 420% in the past 12 months. When looking at year-to-date, the company’s shares are hovering upwards of around 320%.

Based on valuation grounds, Firefinch presides a market capitalisation of around $775.30 million with approximately 1.03 billion shares on hand.

The post Here’s why the Firefinch (ASX:FFX) share price is plunging 10% today appeared first on The Motley Fool Australia.

More reading

• Firefinch (ASX:FFX) share price leaps 5% on US$39 million payday
• Here’s why the Firefinch (ASX:FFX) share price is combusting 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.

from The Motley Fool Australia https://ift.tt/3oQnHO5

The BHP Group Ltd (ASX: BHP) share price is gaining this morning despite a breakdown in its discussions with Wyloo Metals regarding the takeover of Noront Resources.

Previously, the company announced it was in talks with Wyloo Metals to find a mutually beneficial agreement to acquire the Canada-based resource developer. However, that idea has now been scrapped.

At the time of writing, the BHP share price is $40.77, 2.03% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in the green today, with a 0.55% gain.

Let’s take a closer look at today’s non-price sensitive news from the iron ore giant.

BHP share price gains despite break down of talks

There’s been another bump in the road for BHP Lonsdale Investments’ ­– a wholly-owned subsidiary of BHP Group – 82 cent (C$0.75 cent) per share takeover offer for Noront Resources.

The company stated it entered “constructive discussions” with Wyloo Metals regarding the takeover offer but the pair were unable to reach an agreement.

BHP upped its takeover offer in October after Wyloo Metals posed its own takeover bid.

Despite the breakdown of discussions between the two, Noront Resources continues to recommend its shareholders support BHP’s all-cash offer.

More than half of the nickel, copper, platinum, and palladium developer’s shareholders must tender their shares to the offer for it to go ahead.

Fortunately, the news hasn’t dampened the BHP share price. And it’s not alone in its gains today.

Plenty of other ASX 200 resource shares are also having a great start to the week.

Right now, the S&P/ASX 200 Resources Index (ASX: XJR) is 1.31% higher.

Among the sector’s strong performers is Fortescue Metals Group Limited (ASX: FMG). Its share price is currently sporting a 1.1% increase.

Fortescue Metals chair Andrew Forrest also chairs his family’s private investment group, Tattarang, which owns Wyloo Metals. Tattarang also owns a 36% holding in Fortescue Metals.

Right now, the BHP share price is 4.27% lower than it was at the start of 2021. However, it has gained 8% since this time last month.

The post What’s boosting the BHP (ASX:BHP) share price 2% higher today? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Search for new Fortescue (ASX:FMG) boss focused on green ‘transformation’: Twiggy
• 5 things to watch on the ASX 200 on Monday
• Fortescue (ASX:FMG) Future Industries signs Indonesian hydrogen deal
• Analysts say these high yield ASX dividend shares are buys

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/3oPLeyG

AVZ Minerals Ltd (ASX: AVZ) and Ioneer Ltd (ASX: INR) shares have started the week in a very positive fashion.

In early trade on Monday, both lithium explorer’s shares are outperforming the market materially.

For example, the AVZ share price is up over 14% to 67.5 cents and the Ioneer share price is up 10.5% to 74.5 cents.

Why are the AVZ share price and the Ioneer share price storming higher?

The catalyst for the rise in the AVZ and Ioneer share prices this morning appears to have been news out of MV Index Solutions and VanEck.

According to reports, MV Index Solutions has decided to add both AVZ Minerals and Ioneer to the Global Rare Earth/​Strategic Metals Index at the December quarterly rebalance.

This will see the two companies join the likes of Allkem Ltd (ASX: AKE), Jiangxi Ganfeng Lithium, Livent Corp, and Pilbara Minerals Ltd (ASX: PLS) in the index when it rebalances on 17 December.

Why is this good news?

This has the potential to be good news for both shares for a number of reasons.

One is the exposure that it will receive from being included in a popular index which covers one of the hottest industries in investment markets right now.

The other is that fund managers are often restricted from buying shares unless they are included in certain indices. It is conceivable that some fund manager may only be allowed to gain exposure to lithium or battery materials if the shares they want to buy are included in this index.

And finally, any ETFs that are tracking the index will need to buy shares to reflect these changes. This adds to buying pressure and can be a boost to share prices.

The VanEck Rare Earth/Strategic Metals ETF, for example seeks to replicate the price and yield performance of the MVIS Global Rare Earth/Strategic Metals Index. It currently has net assets of $1.1 billion invested in the fund.

The post Why are AVZ (ASX:AVZ) and Ioneer (ASX:INR) shares rocketing higher? appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, AVZ, Irongate, and Santos shares are dropping
• Why is the AVZ (ASX:AVZ) share price crashing 15% today?
• These were the 5 best performing ASX shares in November

Motley Fool contributor James Mickleboro owns Allkem 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.

from The Motley Fool Australia https://ift.tt/321kd2k

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.

Though stock values have dropped at several points in the course of the past year, for the most part, 2021 has been a solid one for investors. And while many experts believe that the next stock market crash is right around the corner, I’m not convinced.

Right now, stock values are high, and that alone could lead to a near-term correction. But that doesn’t mean the market will completely tank.

Furthermore, stock values have been high for a long time now, and while the market definitely took a tumble in March of 2020 when the pandemic first hit home, it recovered fairly quickly. And so if stocks do crash in the coming year, that downturn may be short-lived.

Either way, though, I think it’s important to always be prepared for a stock market crash — even if you’re not lying awake at night worried that the next one will strike any day. And so now that we’ve reached the tail end of 2021, here are some moves I’m making in the coming weeks to gear up for potential turbulence in 2022 — whether it comes to be or not.

1. Sneaking a little cash into my emergency fund

It’s always a good idea to have a solid emergency fund — enough money in the bank to cover three to six months of essential living expenses. That way, if you lose your job or encounter some unplanned bills, you’ll have cash reserves to tap without having to land in debt or liquidate stocks to scrounge up the money.

Right now, my emergency fund is looking pretty robust, especially since I have about a year’s worth of essential expenses on hand in cash. I tend to overfund my emergency savings because doing so gives me peace of mind as both a self-employed worker and an investor. And so between now and the end of the year, any money I don’t spend on holiday expenses or other obligations will probably go into my savings so it’s there for me just in case.

2. Making sure my portfolio is nice and balanced

A diverse investment mix could be just the thing to help you get through a stock market downturn. And so I’m planning to do a thorough review of my investments and make sure they’re as balanced as I’d like them to be.

When you own stocks (or other investments), their value can rise and fall, leading to a scenario where you may be more heavily invested in a single market segment than you’d like to be. So my plan is to make sure that hasn’t happened in my portfolio, and if I need to do some rebalancing, I’ll make that move before stock values tumble.

3. Putting together a wish list of new stocks to acquire

It’s easy to look at a stock market crash as a negative thing. But I like to view these events as buying opportunities.

In the past year, I’ve struggled to add to my portfolio because stock values have been so high. If they fall in the coming year, I want to be ready to pounce. And so I’m researching some companies now so that I’ll be prepared to buy shares should the opportunity present itself.

Hope for the best but be prepared

Sitting around worrying about a stock market crash is not a good use of your mental energy. At the same time, though, you never know when things might take a turn for the worse. This especially holds true during these uncertain times as a pandemic continues to rage.

By boosting my cash reserves, balancing my portfolio, and strategizing about future investments, I’m empowering myself to deal with whatever stock market turbulence comes to be in the coming year. And doing the same may really work to your benefit. 

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

The post The 3 things I’m doing to prepare for a 2022 stock market crash appeared first on The Motley Fool Australia.

More reading

• Why are AVZ (ASX:AVZ) and Ioneer (ASX:INR) shares rocketing higher?
• Why cryptocurrencies like Bitcoin, Polygon, and Terra fell today
• Ramsay (ASX:RHC) share price lower after announcing $1.4bn Elysium acquisition
• Could the CBA share price peak have been and gone?
• $22 billion of newly merged Santos shares are fronting the ASX this morning. Here’s what you need to know

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.

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

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 

The weekend started softly for cryptocurrencies. Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) lost ground as the broader crypto market sold off. Bitcoin lost about $2,000 of value per token in a late Friday crash, hitting a low around $46,786, although as of 3:40 p.m. ET on Saturday, the cryptocurrency is up 0.5% over the last 24 hours to $48,632. Ethereum experienced a similar drop late Friday, hitting a low of $3,835 at one point and is currently up 0.3% in the last day to $4,031. 

DogeCoin (CRYPTO: DOGE) was down as much as 7.3% over 24 hours and is currently down 0.9%. Polygon (CRYPTO: MATIC) fell as much as 11.8% and Terra’s Luna (CRYPTO: LUNA) coin fell as much as 16.2%, although they’re now down 5.6% and 8.8% respectively. 

So what 

A crash early in the weekend happened a week ago as well, indicating that bigger traders may pull their liquidity, or trades, early in the weekend. But the market recovered quickly and is now flat for most of the largest cryptocurrencies. 

The theme of this week was weakness in cryptocurrencies overall as industry leaders were led before Congress. Some lawmakers expressed concern about the industry’s lack of regulation and crypto executives argued that rules are needed, but not those written for an older financial world. At the end of the day, there were few fireworks and no comprehensive regulation seems to be imminent.

Terra Lab’s Luna coin is the one cryptocurrency that has cratered significantly in the last few hours. Less than a week ago, the coin reached the top ten market caps among cryptocurrencies. But Terra Labs and co-founder and CEO Do Kwon have come under investigation in the U.S. and he doesn’t seem to be interested in complying with regulators. In an interview with CoinDesk.tv, Kwon said U.S. regulation was “not that interesting” and may not be as helpful as other executives in setting rules for the country. Despite the big move, there isn’t any significant news out about this cryptocurrency today. 

Now what 

It seems that wild moves on very little news have become standard for cryptocurrencies lately. On a macro level, I think investors need to consider what the market’s pullback from growth stocks meant, and how the Federal Reserve’s reduction in asset purchases and potentially higher interest rates mean for the market. Thus far, cryptocurrencies have traded along with growth stocks, indicating they aren’t an effective hedge for inflation or a down market. 

We should also keep in mind that many cryptocurrencies have gone up rapidly and even a big pullback may be natural. For example, Luna coin is still up 21% over the past month and Polygon is up 22%. On the flip side, Bitcoin, Ethereum, and DogeCoin are down 25%, 12%, and 35% respectively over the past month. 

Volatility continues and long-term investors will want to watch the health of each cryptocurrency’s ecosystem, not just its value from day to day, for an indication of health. 

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

The post Why cryptocurrencies like Bitcoin, Polygon, and Terra fell today appeared first on The Motley Fool Australia.

More reading

• 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?
• Why the Bitcoin price declined over the last 24 hours

Travis Hoium owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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.

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

The Ramsay Health Care Limited (ASX: RHC) share price is on the move on Monday morning.

In early trade, the private healthcare operator’s shares are down

Why is the Ramsay share price falling?

The Ramsay share price is falling today despite announcing a major acquisition in the UK.

According to the release, Ramsay has signed an agreement to acquire UK based mental healthcare provider Elysium Healthcare for an enterprise value of 775 million pounds (A$1.4 billion) from private equity firm BC Partners.

The release notes that Elysium is a leading independent operator of long-term medium and low secure hospitals and complex care homes for individuals with mental health conditions and has a strong partnership with the UK’s National Health Service (NHS).

It offers Ramsay a platform for growth through full utilisation of recently developed capacity, and delivering on its development pipeline, combined with potential bolt-on opportunities.

Positively, management expects the transaction to deliver mid-single digit earnings per share accretion in FY 2023. It also highlights that the deal meets Ramsay’s internal return targets, including a post-tax cash ROIC target of greater than 10% by year five and a post-tax IRR of greater than 10%.

The transaction price of A$1.4 billion represents an FY 2021 EV/EBITDA multiple of 13.5x. Judging by the performance of the Ramsay share price today, some investors may believe Ramsay is paying too much. The deal will be funded from Ramsay’s existing debt facilities.

Ramsay’s Managing Director and CEO, Craig McNally, commented: “This is an excellent opportunity for Ramsay to expand its successful health care services platform in the UK through the acquisition of an established and reputable business, with a strong track record of growth and a robust pipeline of development opportunities. It will build on the Ramsay brand and quality reputation with doctors, payors and patients in the UK market.”

Huge market opportunity

Mr McNally notes that the acquisition opens up the company to a huge market opportunity in the UK.

He explained: “The acquisition of Elysium will expand Ramsay’s patient pathways into the £15bn UK mental health market at a time when more and more people are seeking support for mental health, learning difficulties and neurological issues. It will provide opportunities to leverage the expertise of Elysium and Ramsay’s existing mental health facilities and clinicians in Australia, France, and Sweden to drive improved patient outcomes across our mental health activities globally.”

“Ramsay and Elysium share a strong commitment to clinical excellence, high-quality care and patient safety, with a matching focus on caring for our people and partners. We look forward to strengthening our important partnership with the NHS,” the CEO concluded.

The post Ramsay (ASX:RHC) share price lower after announcing $1.4bn Elysium acquisition appeared first on The Motley Fool Australia.

More reading

• The Ramsay Health Care (ASX:RHC) share price has tumbled 7% this month. Is it a buy?
• 5 things to watch on the ASX 200 on Wednesday
• Macquarie warns the next ASX market downturn could come as soon as February
• Top brokers name 3 ASX shares to sell next week

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 Ramsay Health Care 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/3EQPWlg

Commonwealth Bank of Australia (ASX: CBA) hit all-time closing highs last month.

On 8 November, the CBA share price finished the day at $110.13. That put shares up a whopping 32% for the 2021 calendar year at the time.

And this is no small-cap stock we’re talking about here.

Even at the current CBA share price of $98.03, down 11% from the record high, the big 4 bank has a market cap north of $167 billion.

With CommBank also paying a healthy trailing dividend yield of 3.6%, ASX 200 investors are wondering whether the bank can march to fresh record highs in the year ahead.

What’s the outlook for CommBank relative to its peers?

For the answer to where the CBA share price could be heading next, we turn to Joseph Koh, a portfolio manager in Schroders’ Australian equities team.

According to Koh (quoted by the Australian Financial Review), both the CBA share price and the Westpac Banking Corp (ASX: WBC) share price dragged down the banks last month:

Almost all the bank underperformance in November can be attributed to two banks: CBA and Westpac, both of which are more skewed towards residential mortgages relative to peers. Extremely low interest rates have buoyed mortgage growth, but have also led to sharp price competition, particularly hurting CBA’s and Westpac’s profitability.

Koh notes that interest rates are beginning to move higher. But he gives his tick of approval to Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) due to the makeup of their loan books:

While short-term interest rates have begun to rise, margin pressure will still be evident in 2022 and credit growth will likely slow.

We continue to prefer ANZ and NAB, which have more exposure to business and institutional loans, and believe that CBA in particular is still overvalued. For the price of CBA, you could essentially buy both ANZ and NAB, which combined would have a loan book 50 per cent bigger than CBA’s.

CBA share price snapshot

Despite tumbling 11% from its record high, the CBA share price remains up 19% in 2021. That handily outpaces the 12% year-to-date gain posted by the S&P/ASX 200 Index (ASX: XJO).

The post Could the CBA share price peak have been and gone? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 dividend shares to buy
• Is the Westpac (ASX:WBC) share price a buy after falling 19% in 6 weeks?
• Top brokers name 3 ASX shares to buy next week
• Top brokers name 3 ASX shares to sell next week
• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update

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.

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

It could be a big day on the ASX for this suddenly-massive company. At market open the Santos Ltd (ASX: STO) share price is already heading up, 1.08% at the time of writing to $6.55.

Santos has hit the market as an approximately $22 billion entity today following the finalisation of its merger with Oil Search.

Let’s take a look at what’s driving the oil and gas giant’s stock on Monday.

Santos share price rises amid finalised merger

Today marks the first day the ASX has opened without Oil Search. Instead, it has heralded a much larger gas and oil producer.

The merger of the 2 companies was given its final green light on Friday afternoon.

By Friday evening, Oil Search’s stock had been pulled from the ASX and the Papua New Guinea Stock Exchange.

It followed on from a rocky merger process which saw delays from the Papua New Guinea National Court and an expert finding the transaction undervalued Oil Search shares.

Santos and Oil Search’s all scrip merger will see Oil Search shareholders receiving 0.6275 Santos shares for every Oil Search security they hold.

The new shares begin trading on a deferred settlement basis today, and on a normal settlement basis on 20 December.

Following the transaction, the oil and gas giant will have pro-forma 2021 production of around 117 million barrels of oil equivalent.

The company will also welcome 3 Oil Search directors to its board.

According to the ASX, at its current share price, Santos has a market capitalisation of around $13.49 billion. But that could change today, as the market might look to revalue the now-conjoined company.

Additionally, the Life360 Inc (ASX: 360) share price is one to keep an eye on following the merger’s finalisation today. The software development company was flagged as the replacement for Oil Search in the S&P/ASX 200 Index (ASX: XJO). While its share price surged 12% on the back of the news, in early trade on Monday the Life360 share price is down 1.89%.

The post $22 billion of newly merged Santos shares are fronting the ASX this morning. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• What will happen to Oil Search (ASX:OSH) shares following the Santos merger?
• Why Afterpay, AVZ, Irongate, and Santos shares are dropping
• Done deal: Santos (ASX:STO) and Oil Search (ASX:OSH) merger becomes effective
• 5 things to watch on the ASX 200 on Friday

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 Life360, Inc. 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/3oLCMQT

The Dubber Corp Ltd (ASX: DUB) share price has started the week in the red.

In morning trade, the call recording technology company’s shares are down 2% to $3.12

Why is the Dubber share price falling?

Investors have been selling down the Dubber share price today after weakness in the tech sector offset the signing of a deal with telco giant Optus.

According to the release, the company’s Unified Call Recording and Voice AI platform is launching on the Optus mobile network.

The release notes that this represents an Australian first and will see the platform made available as a native feature of the Optus mobile network. As a result, enterprise customers on Optus now have access to a cost-effective and complete recording and conversational insights solution across virtually any form of communication.

Management believes this will fill a gap for users. It highlights that the offering allows enterprise and government users to securely record all mobile calls for compliance, customer, people and revenue intelligence.

The launch is expected to provide an accretive revenue stream for Dubber, with additional revenues ultimately determined by the uptake of the service by Optus enterprise customers.

Management commentary

Dubber’s CEO, Steve McGovern, appeared to be pleased with the deal.

He commented: “With Dubber at the heart of one of Australia’s largest and most critical mobile networks, we are making the native recording available with AI on every participating phone. Optus is expanding its leadership in connecting Australian businesses to their employees and customers and this now includes the ability to try AI based enrichment of conversations with insights, automated workflows, and more. A conversation on Optus’ network is now worth more to a customer through the ability to capture and reveal insights from that conversation alongside others from other Optus services.”

Mr McGovern also believes there is a significant addressable market for Dubber to target with this offering.

He explained: “Optus Mobile Voice Recording and AI powered by Dubber opens up a significant addressable market, provides a key solution where, historically, there has been a tangible compliance gap and represents a significant leap forward in achieving Dubber’s vision of ‘AI for every phone’. Whatever industry you are working in – financial services, healthcare, retail, government, legal, entertainment, travel, or transport – the power of native mobile recording, sentiment analysis, storage, transcription and real-time “search-ability” will be available to you on your Optus mobile service.”

The post Dubber (ASX:DUB) share price falls despite announcing Optus deal appeared first on The Motley Fool Australia.

More reading

• Dubber (ASX:DUB) share price plunges 6% despite BT deal

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 Dubber Corporation. The Motley Fool Australia owns and has recommended Dubber 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/3lUN3Z6

The Audinate Group Ltd (ASX: AD8) share price is falling on Monday morning.

At the time of writing, the media networking solution provider’s shares are down 3.5% to $10.11.

Why is the Audinate share price falling?

The Audinate share price is falling on Monday despite announcing a new acquisition. This may be due to broad weakness in the tech sector this morning.

According to the release, Audinate has signed an agreement to acquire the video business of Belgium-based Silex Insight for an up-front cash payment of US$6.5 million. This represents approximately 2.3 times forecast revenue for the financial year ending 31 December 2021.

A revenue earn-out of up to US$1.5 million may also be payable based on the uplift in revenue for the twelve-month period from acquisition date.

The company notes that the Silex video business produces video networking products for manufacturers of audio-visual (AV) equipment. The products include IP Cores, Viper Board, Video ASSP, and three video compression technologies.

Management believes it is a strategically compelling acquisition because it complements Audinate’s existing video capabilities in Cambridge, UK. Furthermore, it aligns with the company’s strategic vision for video over IP. In particular, the transaction will increase video FPGA expertise, enable acceleration of the video product roadmap, and cement critical mass for video engineering in Europe.

Audinate’s Co-Founder and CEO, Aidan Williams, was very positive on the acquisition.

He commented: “We are very excited to acquire a team with widely recognised video hardware expertise and an existing revenue base. The video codecs and deep product expertise in the team, in combination with our Dante networking technology, will enable us to go to market with a variety of full-service video offerings.”

“This acquisition complements the video software skills in the Cambridge (UK) team we established earlier in the year. Together these two deals significantly enhance our video capabilities and know-how – outcomes that have been achieved in only twelve months, notwithstanding the challenges presented by COVID,” Williams added.

The proposed transaction is expected to complete on 31 January 2022, subject to the achievement of conditions precedent standard for this type of transaction.

The post Audinate (ASX:AD8) share price tumbles despite announcing acquisition appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares you’ve never heard of that experts love
• 3 hot ASX shares to buy right now: advisor
• 2 ASX shares rated as strong buys by top brokers

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 AUDINATEGL FPO. The Motley Fool Australia owns and has recommended AUDINATEGL FPO. 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/3IGTEjz