The South32 Ltd (ASX: S32) share price is having a decent day of trading so far this Thursday. At the time of writing, South32 shares are up 0.68% at $3.70 each. That looks pretty good considering that the broader S&P/ASX 200 Index (ASX: XJO) is in the red by 0.25% today.

$3.68 puts the South32 share price in the upper-middle of its 52-week range of $2.36 and 4.07 a share. At this pricing, South32 currently has a dividend yield of 1.78%. That’s objectively decent, but by no means impressive compared to some other ASX 200 blue chips. Westpac Banking Corp (ASX: WBC) for instance, currently has a trailing yield of 5.77% on the table right now. South32’s old parent company BHP Group Ltd (ASX: BHP) has 10.22%.

If we include the special dividend that South32 paid out last year alongside its final dividend, we get a trailing yield of 2.51%. All of South32’s recent dividends have been fully franked, so that yield grosses-up to 3.59% if we include the value of these franking credits. But that could be the tip of the iceberg for South32’s income potential, if a top ASX broker is to be believed.

Top ASX broker predicts monster South32 dividends going forward

Investment bank and broker Goldman Sachs reckons South32 shares have plenty of gas left in the tank. The diversified ASX 200 miner is currently on Goldman’s ‘conviction buy’ list, with a 12-month share price target of $4.40 a share. That implies a future potential upside of more than 20% in capital appreciation alone.

But it’s what Goldman thinks South32 has in store for its dividends, that might really excite income investors.

So in FY2021, South32 paid out 6.9 US cents per share in dividends. But Goldman estimates that FY2022 will see the miner fork out a monstrous US 30.9 cents per share. Followed by 33.4 US cents in FY23 and 34.4 US cents in FY24.

This prediction would give South32 a rough forward yield of between 12% and 13% for both FY22 and FY23 on the company’s current share price. Monster dividends indeed.

This, Goldman predicts, will be funded by strong commodity markets for aluminium and alumina in particular, as well as zinc and nickel. It does assume that South32’s current share buyback program will continue at around US$250 million per year. And that South32’s overall dividend payout ratio stays at around 70% of earnings.

I’m sure all South32 shareholders will be looking at Goldman’s predictions, and crossing their fingers they play out.

The post Could South32 (ASX:S32) shares be poised to deliver monster dividends? appeared first on The Motley Fool Australia.

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• Why Bellevue Gold, South32, Starpharma, and Tuas shares are pushing higher
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• 3 ASX dividend shares brokers rate as buys right now

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 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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Supermarket giant Coles Group Ltd (ASX: COL) will face the Federal Court after the Fair Work Ombudsman accused it of short-changing employees more than $115 million.

The Ombudsman analysed past payouts to “thousands” of salaried staffers after Coles last year announced to the ASX it would review their pay.

That analysis found the supermarket had allegedly underpaid 7,812 employees a total of $115.2 million between the start of 2017 and 31 March 2020.

Coles staff allegedly not paid for overtime

According to the Ombudsman, the shortfall was caused by Coles paying annual salaries that were not enough to cover the significant amount of overtime these employees do.

“This court action against Coles should serve as a warning to all employers that they can face serious consequences if they do not prioritise workplace law compliance,” said Fair Work Ombudsman Sandra Parker.

“Businesses paying annual salaries cannot take a set-and-forget approach to paying their workers. Employers must ensure wages being paid are sufficient to cover all minimum lawful entitlements for the hours their employees are actually working and the work they are actually doing.”

Insufficient annual salaries for employees covered by awards has become a “persistent issue” among many companies, according to the Ombudsman.

Incredibly, one Coles worker was allegedly short-changed $471,647 while 45 employees were underpaid more than $100,000.

Supermarket accused of not keeping proper records

Coles has already had an underpayment remediation scheme in place, but the FWO alleged it “significantly underestimated” the money owed to staff. More than $108 million still remains outstanding.

Most of the allegedly underpaid employees were those managing a department or a function within the supermarket, such as bakery, customer service, or delicatessen.

The impacted staffers were located both in regional and metropolitan stores, across all states and territories.

Coles also faces allegations that it didn’t keep proper records, including documentation relating to overtime hours.

In an announcement to the ASX on Thursday afternoon, Coles acknowledged FWO’s court case and said it had apologised to the impacted employees.

“Coles is currently reviewing the proceedings, which include issues relating to the interpretation and application of various provisions of the General Retail Industry Award 2010,” its statement read.

“To the extent that further remediation may be required, we will update the market accordingly.”

A Federal Court directions hearing in Sydney is yet to be scheduled.

FWO is pursuing penalties against Coles for breaching workplace laws, plus a court order to force it to backpay affected staff with interest.

Coles shares were trading at $17.63 on Thursday afternoon, down 4.7% for the year so far.

The post Coles (ASX:COL) hauled to court over $115 million in underpayments appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 shares of and has recommended COLESGROUP DEF SET. 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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Ethereum (CRYPTO: ETH) hit new records in November.

The world’s number 2 crypto, with a current market cap of US$540 billion (AU$760 billion), was trading for an all-time high of US$4,856 on 10 November, according to data from CoinMarketCap.

Depending on your time zone, Ethereum kicked off November trading for US$4,314 and finished the month at US$4,604. While that was down from the 10 November record, the token finished the month up 6.7%.

As at 30 November, Ethereum had gained 530% year-to-date, putting it well ahead of the 100% gain posted by Bitcoin (CRYPTO: BTC) in that same period.

What happened with Ethereum in November?

The Ethereum price, along with other leading cryptos, is getting a boost from increased institutional investor interest.

On 3 November, the Commonwealth Bank of Australia (ASX: CBA) revealed that it would become the first Australian bank to offer crypto services to its customers.

Via CommBank’s app, its customers will be able to buy, sell or hold Ether, Bitcoin, Bitcoin Cash (CRYPTO: BCH) and Litecoin (CRYPTO: LTC), among other top cryptos. CBA partnered with crypto exchange Gemini and blockchain analysis firm Chainalysis, to launch the new crypto service.

What else is helping drive the strong performance?

Ethereum’s strong performance in November, and indeed all calendar year, is also linked with its real-world use factors, primarily involving smart contracts.

As Darren Abrams, managing director of digital currency provider Aus Merchant Investments, told The Motley Fool:

Ethereum is a platform, upon which a multitude of decentralised applications are built. These decentralised applications or ‘dapps’ as they are often referred to, are part of a revolution in the computing space known as web 3.0… While Bitcoin is central to the Web 3.0 movement, it’s use case is limited. Ether, and other smart contract blockchains, have an almost infinite number of use cases.

While crypto investors have driven up Ether’s price this year, the token failed to live up to any safe haven status at the end of the month.

When news broke of the Omicron COVID variant on 26 November, the token plummeted alongside other risk assets. Ethereum fell from US$4,550 to US$3,960, losing 13% in a single hour. Bitcoin suffered a similar fate, falling 10% in that same hour.

The post Here’s what happened with Ethereum’s (CRYPTO:ETH) record breaking 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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There are now more exchange-traded funds (ETFs) on the ASX boards than you can poke a stick at. From their emergence as simple index funds, ETFs have taken the investing world by storm over the past decade or two.

Ten years ago, you’d have been pressed to find more than a handful of ETFs on the Australian share market. But today, there are dozens and dozens of them.

You can find an ASX ETF for almost anything. Be that palladium bullion, global mining shares, cryptos, crude oil futures, or inflation-linked government bonds.

But looking at the most popular ASX ETFs, it’s clear that the humble index fund remains king of the hill.

As it stands today, the ASX’s most popular ETF is the Vanguard Australian Shares Index ETF (ASX: VAS).

VAS’s provider Vanguard tells us that this fund had $9.59 billion in funds under management (FUM) as of 31 October. That’s miles ahead of its closest rival, the iShares S&P 500 ETF (ASX: IVV), which has approximately $5.3 billion in FUM today.

So, what makes this ETF so popular?

Why is VAS our most popular ASX ETF?

Well, one possible explanation is its unique structure. Most index ETFs that track the ASX share market mirror the S&P/ASX 200 Index (ASX: XJO). This flagship ASX index tracks the performance of the Australian share market’s 200 largest companies. But VAS instead mirrors the S&P/ASX 300 Index (ASX: XKO).

As you can probably guess, this index includes an additional 100 companies outside the ASX 200. This gives VAS a diversification boost and more exposure to the small-cap market.

It has also given VAS a performance edge over its ASX 200 rivals. Over the past 10 years, VAS has returned an average of 9.91% per annum. In contrast, the iShares Core S&P/ASX 200 ETF (ASX: IOZ) has given investors an average of 9.75% per annum over the same period.

Another factor that could be at play is Vanguard’s reputation, something our chief investment officer Scott Phillips recently discussed.

Many investors know that Vanguard is a not-for-profit company. This can give Vanguard ETFs a pricing edge as they don’t have to give their providers the same kind of margin as a for-profit provider. We can see this in VAS’s annual management fee of 0.1%. That’s $10 a year for every $10,000 invested.

In the vanguard of reputations…

It probably doesn’t hurt that the great investor Warren Buffett once described Vanguard’s late founder Jack Bogle as doing more for the average investor than anyone else. Here’s what Buffett said in one of his letters to shareholders a few years ago:

If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle… he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me.

That is a tough act to follow.

So, it’s probably a combination of these factors that make VAS the ASX’s most popular ETF.

At the time of writing, units in VAS are going for $92.92, down 0.33% for the day so far.

The post Why is the Vanguard Australian Shares Index ETF (ASX:VAS) the most successful Aussie ETF? appeared first on The Motley Fool Australia.

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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 recommended iShares Trust – iShares Core S&P 500 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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The Advanced Human Imaging Ltd (ASX: AHI) share price is one of the highest-flying on the ASX on Thursday.

At the time of writing, shares in the company are in incredible shape with a gain of 46.4% to 93 cents apiece. Investors would be hard-pressed to find a better-performing investment on the ASX today.

Oddly, the fitness tracking technology company is making this move without any announcements being released. However, the Advanced Human Imaging share price experienced a similar 44% pop in its US-listed shares overnight.

Let’s take a closer look at what’s been happening.

US market sets pace for Advanced Human Imaging share price

Often Australian shares that have a sibling in the United States via another listing move in sync with each other. A good example of this has been Afterpay Ltd (ASX: APT) and Square Inc (NYSE: SQ) since the two are now connected through a proposed acquisition. In this situation, it has worked in favour of the Advanced Human Imaging share price.

The company’s US-listed counterpart enjoyed a 44% surge in value overnight. Although, it’s hard to say what caused the considerable rise. The only information released prior to the surge was shared with Aussie investors yesterday morning. This involved the ASX-listed AHI concluding definitive agreements with digital health provider Cubert Inc.

In short, the agreement will see AHI’s technology integrated into Cubert’s FitTrack MyHealth app. This preventative health screening app has a global audience of more than 800,000 active users. Notably, the app is supported and used by a number of celebrities including Khloe Kardashian.

Commenting on the news, Advanced Human Imaging CEO and co-founder Vlado Bosanac said:

Marius and his team at FitTrack will target a February 2022 launch of the combined application, whilst in most cases this would be an aggressive target when looking at the available time, Cubert has an 80-strong development team that will focus on this specific deliverable.

The US-listed American Depositary Shares (ADS) in Advanced Human Imaging are still down from their initial public offering (IPO). Initially, the ADS were issued at US$5.52, while the current price for AHI’s US-listed shares is US$4.48.

Meanwhile, the Advanced Human Imaging share price on the ASX is down around 23% this year to date.

The post The Advanced Human Imaging (ASX:AHI) share price is leaping 46%. Why? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

Since it emerged from obscurity in early 2009, cryptocurrency pioneer Bitcoin (CRYPTO: BTC) has ushered in an entirely new digital asset class. The tokens are the oldest and most widely recognized of all cryptocurrencies, and rely on blockchain technology to ensure the security of their transactions.

There’s been an ongoing debate regarding the long-term value and stability of Bitcoin. Still, with a growing cadre of well-known companies adopting the digital payment method, the questions are slowly being put to rest.

Recent data shows that the Bitcoin network has surpassed an important milestone on the path to widespread acceptance.

Overtaking PayPal?

The Bitcoin network now processes more payment volume than online payment leader PayPal Holdings (NASDAQ: PYPL), according to data supplied by blockchain insight provider Blockdata. Thus far in 2021, the Bitcoin network has handled transactions worth $489 billion per quarter, on average, dwarfing the average of $302 billion for PayPal.

It’s important to put those numbers in context, however. Bitcoin’s surging price has boosted payment volumes since the price has more than tripled in 52 weeks (as of this writing). Moreover, since PayPal’s transactions are conducted in government-backed currencies, they don’t experience the volatility inherent in Bitcoin. So while it isn’t necessarily an apples-to-apples comparison, directionally it points to increasing adoption of Bitcoin as a payment method.

Some perspective is needed

Additionally, even with the artificial boost in volume, transactions on the Bitcoin network still pale in comparison to payments giants Mastercard and Visa, which on average processed $1.8 trillion and $3.2 trillion per quarter, respectively, so far this year. 

Then, there’s the number of transactions, which makes the difference even starker. The Bitcoin network processes about 280,000 transactions per day, versus roughly 366 million per day by Mastercard and 597 million per day by Visa. Even PayPal’s transaction numbers are higher than Bitcoin’s, at an average of roughly 53 million per day in the third quarter. When viewed through this lens, it provides some much-needed perspective to Bitcoin’s place in the grand scheme of things.

Twin sons of different mothers

There’s little denying that Bitcoin is all the rage these days and while surpassing this milestone is no doubt important, it is also somewhat arbitrary, particularly given the disparity between volume and transactions. It also doesn’t diminish the fact that PayPal is still the digital payments king.

PayPal was the original online payment system and has long been the leader in digital payments. To illustrate this point, nearly 8 in 10 smartphone users had at least one payment app on their phone to close out 2020, according to research conducted by Cornerstone Advisors. PayPal was by far the leader, installed on 65% of phones, while Apple Pay came in a distant second with 26%. 

It’s also important to note that Bitcoin and PayPal have an alliance of sorts. In late 2020, PayPal launched a service to enable its users to buy, hold, and sell various cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, directly from their PayPal digital wallet. PayPal views this feature as “exploring and investing in the next generation of financial services infrastructure.” 

The digital payments space is evolving

It’s difficult to estimate the number of Bitcoin owners — at least with any degree of accuracy. Some studies place the number in the neighborhood of 100 million, while others put it closer to 300 million. Because users store their cryptocurrency in digital wallets, at exchanges, or in brokerage accounts, that task of estimating Bitcoin holders won’t get any easier. 

For its part, PayPal closed out the third quarter with 416 million active accounts, with roughly 44.2 transactions per account during the trailing-12-month period.

The explosion of fintech in recent years has made it clear that there will be multiple winners in the digital payments space. As the oldest and most well-established cryptocurrency, Bitcoin will likely have a place on the podium. Given its track record in digital payments, PayPal will likely be there as well. 

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

The post Bitcoin just sailed past this important milestone appeared first on The Motley Fool Australia.

More reading

• Can Bitcoin reach $100,000 in 2022?
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Danny Vena owns shares of Apple, Bitcoin, and PayPal Holdings and has the following options: long January 2022 $85 calls on PayPal Holdings. 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 Apple, Mastercard, and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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Shares in Damstra Holdings Ltd (ASX: DTC) were placed into a company requested trading halt before the open today. Prior to the request, Damstra shares were set to open the session at 40 cents apiece.

This comes after Damstra announced a $20 million capital raise to fund its future growth operations. Here are the details.

What did Damstra announce?

Damstra advised it had raised a total of $20 million before costs via a 2-tranche offer at 34 cents per share. The offer was made to sophisticated and institutional investors only.

Specifically, the funds were obtained via a fully underwritten institutional placement of new shares, raising $10 million, and a fully underwritten accelerated pro rata non-renounceable entitlement offer to obtain the other $10 million.

The offer represents a 15% discount to the last closing share price on 1 December 2021 of 40 cents per share and a 23.7% discount to the 5 day volume-weighed average price (VWAP) up until that point.

Damstra intends to use the funds for a range of growth initiatives in order to drive sales and support profit margins. For instance, it intends to allocate funds to grow sales capability and resources, especially in the North American market.

It also hopes to ensure availability of funds for the TIKS deferred consideration payment, secure further investment in Damstra’s Enterprise Protection Platform and bolster working capital requirements.

The trading halt is expected to end at market open on 6 December at which point eligible retail shareholders will have the opportunity to participate in a retail entitlement offer.

This particular offer is expected to run from 6 December and will close at the end of business on 16 December. Damstra says that eligible retail shareholders can choose to take up all, part, or none of their entitlements.

Furthermore, Damstra notes that this offer will include a “shortfall facility”, under which eligible retail shareholders may also apply for “top up shares” that weren’t nabbed up by other shareholders, “up to a maximum of 50% of the [shareholder’s] entitlement”.

The news follows an announcement from last week where the company announced that it had signed a variation to the Master Supply Agreement it holds with CPB Contractors Pty Ltd.

The impact of this update to the company’s turnover is expected to increase Annual Recurring Revenue (ARR) by $550,000, Damstra says.

Damstra share price snapshot

It’s been an unimpressive last 12 months for Damstra, with its share price losing almost 77% in that time. It’s arrived at this point after sliding a further 74% this year to date.

Even in the past month alone, Damstra has slipped more than 44% in the red and is also down 24.5% in the past week.

The post Damstra (ASX:DTC) share price halted amid $20m cap raise appeared first on The Motley Fool Australia.

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

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The Qantas Airways Limited (ASX: QAN) share price is struggling lately despite the start of the airline’s second ‘Points Auction’.

Sadly, the excitement surrounding the auction hasn’t been enough to boost the Qantas share price.

At the time of writing, it is $4.90, 1% lower than its previous close. The company’s stock also slumped 2.1% yesterday amid the first hammer’s fall.

Broader market suffers

However, the dip isn’t exclusive to Qantas. The S&P/ASX 200 Index (ASX: XJO) fell 0.6% yesterday and is currently down 0.3% today.  

Additionally, most ASX 200 travel stocks are in the red amid the continued outbreak of the Omicron COVID-19 variant.

New South Wales Health announced it had identified a sixth case of Omicron yesterday, while the Northern Territory has recorded one instance of the variant.

The Webjet Limited (ASX: WEB) share price fell yesterday and is down another 1.2% today. The Flight Centre Travel Group Ltd (ASX: FLT) share price is also on its second day in the red, sporting a 1% drop.

Let’s take a closer look at the latest happenings at the flying kangaroo.

Points auction hasn’t inspired the Qantas share price

Qantas’ second online points auction kicked off yesterday, but it hasn’t yet managed to boost interest in the airline’s share price.

The auctions will see Qantas Frequent Flyers bidding for exclusive experiences or items with Frequent Flyer points.

They continue today, with another offering available for bidding every day until next Thursday. Each day sees another auction opening at 8am with hammers hitting gavels at 9pm.

Qantas Loyalty CEO Olivia Wirth said the auctions are in response to members looking to use their points differently:

The response from our first Points Auction was phenomenal. We saw tens of thousands of visitors to the auction site…

From taking to the slopes with an Olympian in Whistler, to a private dining experience prepared by Neil Perry in the First lounge, we have no doubt that these auction items will be in hot demand.

There’s something for everyone on offer, from a luxury day trip to Hamilton Island onboard a private jet to a pair of pre-loved Boeing 747 economy seats, complete with Qantas bar cart.

Yesterday, one lucky Frequent Flyer walked away with return business class flights and 4 nights’ accommodation in South Australia. They took home the trip for 900,510 Frequent Flyer points.

Today, bidders will be trying to get their hands on a return trip to London worth $40,000. There, the winner will spend 8 days in a 5-star hotel and take part in several jaw-dropping activities.

At the time of writing, today’s bidding is at 2.5 million points.

The post ‘Phenomenal’ points auction fails to ignite Qantas (ASX:QAN) share price appeared first on The Motley Fool Australia.

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• Here’s why the Webjet (ASX:WEB) share price is getting hammered 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Aussie Broadband Ltd (ASX: ABB) share price fell as the Over The Wire Holdings Ltd (ASX: OTW) share price surged after the parties moved closer to a merger.

The companies entered into a Scheme Implementation Deed that will allow Aussie Broadband to buy 100% of OTW.

The implied offer price that the bidder is paying is $5.75 per OTW share. Shareholders in the target can opt to receive the payment in all cash, all scrip or a combination.

Aussie Broadband share price sinks as OTW share price rises

The Aussie Broadband share price tumbled 5.5% to $5.15 during lunch time trade. In contrast, the OTW share price jumped 5.6% to $5.70.

Given how close the OTW share price is trading to the offer price, the market believes the deal will go through.

This isn’t a done deal, but the OTW board is recommending its shareholders vote in favour of the merger. The board’s support is conditioned on a favourable independent expert report and assumes no other bidder lobs a better deal.

Financial outcomes from the merger

It is anticipated that the merged entity will deliver annual synergies of between $8 and $12 million within three years.

Other benefits touted by Aussie Broadband are ongoing capital expenditure savings and the ability to enhance skills, products and solution capabilities for the group.

Further, the acquisition is expected to be earnings per share (EPS) accretive on a pre- and post-synergy proforma statutory FY21 basis.

The proforma statutory FY21 revenue for the combined group is estimated to be $463.1 million. The earnings before interest, tax, depreciation and amortisation (EBITDA) is pegged at $51 to $55 million, inclusive of run-rate synergies.

Rational for the acquisition

OTW offers telecoms and IT solutions to businesses while Aussie Broadband largely sells NBN broadband connections.

The bidder is capitalising on the high Aussie Broadband share price, which has rallied 157% this year.

JPMorgan reckons the takeover will give Aussie Broadband a nice earnings boost, although mergers and acquisitions (M&As) carry risks.

Is the deal good for the Aussie Broadband share price?

“We estimate the proposal would be highly EPS accretive largely because of ABB’s under-geared balance sheet,” said JPMorgan.

“However, we also see up to 7% value dilution depending on the level of equity included in the acquisition.

“Further, while ABB still has little to no debt, there could be further acquisition-led growth which represents a risk, in our view.”

Nonetheless, the broker is recommending the Aussie Broadband share price as “overweight”. Its 12-month price target on the shares is $6.50.

The post Aussie Broadband (ASX:ABB) share price slumps as it closes in on OTW appeared first on The Motley Fool Australia.

More reading

• Why is the Aussie Broadband (ASX:ABB) share price soaring today?
• Why did the Aussie Broadband (ASX:ABB) share price speed 7% higher today?

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited and Over The Wire Holdings Ltd. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Health Care index (ASX: XHJ) pared its October gains in November. The index went from 2.62% up in October to a slight 0.11% fall over November to 46,299 points.

However, ASX healthcare shares did outperform the S&P/ASX 200 Index (ASX: XJO) which fell 1.56% over November as the market continued to grapple with the latest COVID-19 reopening challenges.

Despite the weakness of the broad healthcare sector last month, several companies pushed well ahead of the pack.

Here are the top 5 performing ASX healthcare shares for November.

Sonic Healthcare Limited (ASX: SHL)

After a poor start to the month, shares in ASX healthcare giant Sonic Healthcare finished the month 7% in the green.

Early in November, Sonic’s share price took a nosedive and sunk to a 2-month low of $38.51.

However, investors began piling back into Sonic after it released its Q1 FY22 trading update. In the release, the company revealed revenue growth of 5% year-on-year (YoY) to $3.08 billion and EBITDA came in 16% higher.

Robust demand for Covid-19 tests and vaccinations bumped the company’s sales and earnings during the quarter. These trends look set to continue into CY22, according to expert commentary.

These figures were a positive surprise for the market, as many analysts were banking on Sonic’s revenue declining in FY22.

As such, investors bought in at the lows and drove the Sonic share price north to finish the month at $42.70.

Pro Medicus Limited (ASX: PME)

Pro Medicus shares started catching bids in late October and the momentum continued for the next few weeks. The company finished 17% in the green last month after its share price charged north with authority from the get-go.

Investors appeared to view Pro Medicus’ annual report in a positive light. The company reiterated its FY21 earnings results in more detail. It was a successful period and the company secured multiple contract wins during the year.

As a result, 9 out of the 20 leading hospitals in the US are now using the Pro Medicus Visage-7 imaging platform.

Pro Medicus anticipates it will secure additional contracts in FY22 and will continue rolling out its Visage RIS platform. In addition, cash flow from several contracts already secured is set to be realised this coming year. The company expects that this will drive growth at its top and bottom lines.

After shooting off a low of $53.28 on 1 November, Pro Medicus shares finished the month at $62.48. This netted shareholders a tidy $9.20 per share profit for the month.

Incannex Healthcare Ltd (ASX: IHL)

Shares in the medicinal cannabinoid company gained 41% in November.

A slew of positive catalysts bolstered the Incannex share price — mainly clinical trial approvals and the company’s quarterly activities report released in late October.

For example, an ethics committee has approved its Phase 2a clinical trial examining the safety and efficacy of psilocybin in primary anxiety disorder.

Psychedelics like psilocybin are gaining traction within medicinal circles as a front-line treatment for many mental illnesses. This is largely due to their non-invasive nature and excellent treatment results.

In its activities report, Incannex told the ASX it has successfully raised $17.66 million from an option exercise program.

Investors piled into the company after these updates and sent its share price soaring from a low of 40.5 cents to 57 cents at the closing bell on 30 November.

SDI Limited (ASX: SDI)

Shares in SDI, a supplier of dental restoration materials, gained 10% during November. This netted shareholders a 10 cents per share gain.

Investors responded positively to SDI’s AGM mid-month, where the company gave a high-level view of its operations across the financial year.

SDI noted it had paid total dividends of 3.15 cents per share last year, up 70% on the prior corresponding period.

SDI also highlighted several product launches in its whitening and glass ionomer division and said it is focused on investing in research and development.

After a jagged start to the month, the SDI share price took off from $1.01 on 12 November to finish the month at $1.10.

In the past 12 months, SDI shareholders have enjoyed a 37% return to date.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

Despite it being a quiet month on the news front, shares in Fisher & Paykel still climbed 8% during November.

Fisher & Paykel shares traded as low as $29.42 early on in the month before going as high as $32.30 at the close on 25 November. Investors then sold off their positions and the share price finished the month at $31.58.

One key takeout for the period was the company’s half-year results released on 25 November. Fisher & Paykel outlined it had suffered a slight down-step in revenue and earnings due to pressures on hospitals and patient turnover from the pandemic.

Despite this, consumables revenue came in 8% higher and formed the bolus of total sales. The company’s home care division also grew during the first half.

Despite the share price growth in November, it’s been a challenging year for Fisher & Paykal investors. Their positions are down almost 5% since this time last year.

The post These were the 5 best performing ASX healthcare shares in November appeared first on The Motley Fool Australia.

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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended SDI Limited and Sonic Healthcare 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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