Brokerage is something that most investors love to hate. Charging a fee per trade, brokerage adds to the ‘frictional costs’ of investing and financially punishes investors for trading – especially if an investor trades frequently. Well, some promising news might be heading these investors’ way.

Stake is an Australian brokerage company that has made a name for itself by offering brokerage-free access to the US markets for ASX investors. Due to this lack of brokerage, Stake is often called ‘Australia’s Robinhood’. That’s after the similarly-modelled US company. The Motley Fool has discussed Stake before, which you can read more about here.

Until now, Stake only competed against the other popular ASX brokerage platforms like Commonwealth Bank of Australia‘s (ASX: CBA) CommSec and National Australia Bank Ltd.‘s (ASX: NAB) NABtrade for the trading of US shares. But it looks like this is about to change.

A Stake in the ASX?

According to the company’s website, Stake is planning on allowing its customers to also trade and invest in ASX shares. That’s in addition to the US shares it already offers. Here’s some of what Stake said:

Soon, you’ll be able to invest in all publicly traded stocks and ETFs on the ASX and Chi-X through Stake. But don’t expect the same-old to what’s already out there. We’ll be redefining what brokerage looks like for the ASX, to provide you more control and greater transparency…

We’ll be releasing full details about our offering in the coming months but expect a new ASX brokerage model that’s fresh and exciting.

The post Zero ASX brokerage? Popular broker Stake is launching ASX share trading appeared first on The Motley Fool Australia.

More reading

• CBA (ASX: CBA) tech hiring to amp-up as it nears $200 billion valuation
• ASX 200 up 1.3%: Soul Patts-Milton merger, IGO jumps
• Leading brokers name 3 ASX shares to sell today
• Top broker says the Commonwealth Bank (ASX:CBA) share price is still overvalued
• Why are blue-chip ASX 200 shares selling off today?

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

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The Bitcoin (CRYPTO: BTC) price is getting hammered.

One Bitcoin is worth US$32,234 (AU$42,979). That’s down 10% in the past 24 hours. The Bitcoin price is now less than half the all-time highs of US$64,829 reached in mid-April.

And it’s not just Bitcoin that’s falling.

According to data from CoinGecko, the global crypto market cap is currently US$1.31 trillion. That’s down 14.9% over the past 24 hours and down from some US$2.6 trillion just last month.

A valuable lesson in cryptocurrency risk, perhaps, for the estimated 4 million Australians who said they planned to invest in cryptos as a means of accumulating wealth.

Why is the Bitcoin price crashing?

You’ll hear all sorts of reasons why the Bitcoin price is tumbling.

Technical analysts like to point to something called the ‘death cross’.

If you’re not familiar, the term simply means that an asset’s average price over the past 50 days has dropped below its 200-day moving average.

In share markets, this can – but certainly doesn’t always – indicate that a company is under pressure and could suffer further share price falls.

But in the wild west of cryptocurrencies, the ‘death cross’ hasn’t proven a statistically reliable indicator. At least, not yet.

In fact, Bitcoin passed into the dreaded death cross in March 2020. By 15 March 2020, the Bitcoin price was down to US$5,355. And, well, you know what happened next.

The digital token went ballistic, hitting US$64,829 just 13 months later.

So if it’s not the death cross, what is pushing the Bitcoin price lower?

China cracks down on its banks

The Chinese government has been ramping up its efforts to crack down on or even eliminate Bitcoin and Ethereum (CRYPTO: ETH) trading and mining within the Middle Kingdom.

The People’s Bank of China (PBOC) central bank has linked cryptocurrencies to money laundering, financial instability and illegal cross-border transactions.

As Bloomberg reports:

Representatives from Industrial and Commercial Bank of China Ltd., Agricultural Bank of China Ltd. and payment service provider Alipay were reminded of rules that prohibit Chinese banks from engaging in crypto-related transactions… China Construction Bank Corp., Postal Savings Bank of China Co. and Industrial Bank Co. were also at the meeting, according to the PBOC statement.

Jeffrey Kleintop, chief global investment strategist for Charles Schwab & Co said:

The fact that there’s a crackdown there perhaps does take away some of its lustre. I’m not sure it’s a signal of a longer-term change in direction, but it can certainly create some volatility. No one is sure the extent of the crackdown and China is an important player in the Bitcoin market.

Meltem Demirors, chief strategy officer at CoinShares, added, “There’s just a lot of fear, and when there’s fear, people sell risky assets. I do think that Bitcoin’s still perceived as a risk-on asset. Generally, investors are skittish.”

Bitcoin price hit by mining bans

It’s not just Chinese financial institutions that are being banned from handling cryptos.

The Bitcoin price, along with the Ether price, is also under pressure from renewed Chinese bans on crypto mining.

And according to the Cambridge Bitcoin Electricity Consumption Index, China was responsible for approximately 65% of global Bitcoin mining as of April 2020.

Sichuan, the region in China where most crypto mining takes place, is taking steps to stamp out all such activity, with Bloomberg quoting a report from China’s Global Times, stating “the closure of many Bitcoin mines in the province has resulted in more than 90% of China’s Bitcoin mining capacity being shuttered”.

Oh…don’t forget the stablecoin crash

One more lodestone pulling down the Bitcoin price appears to be the rapid crash by stablecoin (not-so-stablecoin?) Titan to almost zero.

Edward Moya, senior market analyst at Oanda Corp, cited the Titan crash in an email (from Bloomberg):

Bitcoin tumbled as the demise over the Titan token raised the pressure of regulators to deliver more protections for the public. Titan’s crypto crash was a surprise to many as it is a partially collateralized stablecoin. Given the risk-off environment that is hitting Wall Street, cryptocurrencies are under pressure.

So with the Bitcoin price now at less than half its record highs, is it time to buy the dip…or time to avoid the falling knife?

I’ll get back with you on that next month!

The post Ignore the ‘death cross’…here’s why the Bitcoin price is crashing appeared first on The Motley Fool Australia.

More reading

• Cryptocurrencies like Bitcoin just tanked again!
• Are 4 million Aussies about to lose a fortune on Bitcoin?
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5
• How Elon Musk’s tweets move the cryptocurrency market
• Is Facebook about to finally launch its cryptocurrency?

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

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The Red 5 Limited (ASX: RED) share price is racing higher today. This comes following an update on its King of the Hills (KOTH) gold project.

At the time of writing, the gold producer’s shares are up 4.29% to 18.3 cents.

What’s driving the Red 5 share price higher?

Red 5 shares are climbing after the company provided investors with a positive update this morning.

According to its release, Red 5 has awarded a mining services contract to Macmahon Holdings Limited (ASX: MAH).

This follows an in-depth tender process that saw a number of contracting companies compete for Red 5’s open pit and underground mining activities. Red 5 signed a letter of intent (LOI) with Macmahon in early March, leading to the formally awarded contract.

The contract will run for an initial 5-year period beginning in the March quarter of 2022. Macmahon estimates the award will generate revenue of more than $650 million over the life of the deal.

More on the KOTH gold project

The KOTH gold project, wholly owned by Red 5, is situated in the Eastern Goldfields region of Western Australia.

The gold mine has a 16-year life, with more than 2.4 million ounces of ore reserve, and 4.1 million ounces of mineral resource.

The open pit and underground mine is expected to have its first gold pour in the June quarter of 2022.

Management commentary

Red 5 managing director Mark Williams said of the award:

We’re pleased to have finalised agreed contract terms with Macmahon and formally appointed them as our open pit and underground mining contractor. Macmahon is one of the strongest mining contractors in the market, and we are looking forward to partnering with them to deliver Australia’s next significant new gold mine.

Importantly, the contract terms are in line with the mining unit costs outlined in the KOTH FFS. Operational efficiencies and cost benefits have been realised in having both mining operations managed by a single contractor.

Given the current tightness in the labour market in Western Australia’s mining sector, we believe Macmahon is well placed to secure the skilled resources required to operate the underground and open pit mines at KOTH.

The Red 5 share price has sunk more than 40% over the last 12 months. In addition, it is down 27% in 2021 alone.

The post Here’s why the Red 5 (ASX:RED) share price is surging today appeared first on The Motley Fool Australia.

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• Best ASX value buys for the commodities supercycle
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Cryptocurrencies like Bitcoin (CRYPTO: BTC) are in the news again this morning… and not for the reason cryptocurrency investors might like. Cryptocurrencies have endured a nasty sell-off overnight.

This might be especially disappointing for those who follow the crypto space. Just last week, Bitcoin climbed back over US$40,000 a coin for the first time since mid-May, perhaps giving the illusion that the crypto crash we have witnessed over the past month or two might finally have turned a corner.

But alas for those optimists, that doesn’t seem to be the case as of yet. Since yesterday morning, Bitcoin has slumped from almost US$36,000 a coin to the current price of US$32,254. That’s a slide of more than 10% in just over 24 hours.

It’s not just Bitcoin either. Ethereum (CRYPTO: ETH) was as high as US$2,264 a coin yesterday morning but is going for US$1,938 this morning, down more than 14% in just over 24 hours. Ethereum is the second largest cryptocurrency by market capitalisation, behind Bitcoin. The third largest crypto is Ripple (CRYPTO: XRP). It was almost at 78 US cents yesterday morning. But today, Ripple is down to 62.9 US cents – a drop of close to 20%.

The almighty Dogecoin (CRYPTO: DOGE) has copped some of the worst selling pressure. It’s down more than 34% since yesterday morning and is sitting at 18.8 US cents a Dogecoin.

A one-word summary of the crypto space in the past 24-30 hours? Ouch.

Cryptocurrencies like Bitcoin sell off… But why?

So why is this happening? According to a report in the Australian Financial Review (AFR) today, crypto investors can largely blame China. This report tells us that China has apparently “summoned officials from its biggest banks to a meeting to reiterate a ban on providing cryptocurrency services”.

The AFR reckons that this is ” is the latest sign that China plans to do whatever it takes to close any loopholes left in crypto trading”.

Obviously, increased barriers to entry into the crypto market itself in the world’s second-largest economy is not good news for said crypto markets. It may also be a harbinger of things to come: what if other countries follow China’s lead? Here’s what Jeffrey Kleintop, chief global investment strategist for Charles Schwab & Co, told the AFR:

The fact that there’s a crackdown there perhaps does take away some of its lustre… I’m not sure it’s a signal of a longer-term change in direction, but it can certainly create some volatility. No one is sure the extent of the crackdown and China is an important player in the bitcoin market.

Who knows where Bitcoin will go from here. But one thing seems certain: the trademark volatility of the cryptocurrency space doesn’t look like it’s going anywhere anytime soon.

The post Cryptocurrencies like Bitcoin just tanked again! appeared first on The Motley Fool Australia.

More reading

• Are 4 million Aussies about to lose a fortune on Bitcoin?
• ASX 200 Weekly Wrap: ASX makes it 5 out of 5
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• Is Facebook about to finally launch its cryptocurrency?
• World Bank won’t support El Salvador’s Bitcoin ambitions

Motley Fool contributor Sebastian Bowen owns Bitcoin, Ether and Ripple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Australia’s biggest bank has gotten a whole lot bigger this year. Following a strong rally in the Commonwealth Bank of Australia (ASX: CBA) share price, its market capitalisation is now within arm’s reach of $200 billion.

However, the bank’s valuation is not the only growing aspect of the company. In an interview with The AFR, CommBank’s Chief Information Officer Brendan Hopper described a growing emphasis on technology and innovation internally.

Banking on tech

Commonwealth Bank has not so secretly been building out its digital offerings. The bank already boasts the largest internal technology team in Australia with around 4,000 engineers.

However, Mr Hopper revealed this will grow by more than 650 additional engineers over the coming months. The bold hiring program comes as the bank shifts its internal software development team to a more traditional tech company structure.

Currently, the Commonwealth Bank is hiring two engineers per day. While this might seem high already, the bank is looking to increase that rate dramatically. Commenting on the hiring spree, Hopper said:

It is also part of a wider tech simplification journey, where another part is about moving the enterprise to the cloud piece by piece, eliminating the problem of needing to have data centres and shifting hardware around, because cloud just lets you treat everything as a software problem

These engineers will be working on a range of digital products under the bank’s umbrella.

Building beyond banking

This news follows Commonwealth Bank CEO, Matt Comyn’s digital banking initiatives presentation held in May. In this presentation, Comyn announced the launch of a pilot program that allows customers to view account balances from other eligible financial institutions directly in the CommBank app.

Additionally, it was revealed Commonwealth Bank had acquired a 23% shareholding in online shopping start-up Little Birdie. Subscription-based wholesale electricity provider, Amber, was also added to the bank’s investments.

These acquisitions and integrations are a part of CBA’s attempt to push beyond simply being an ASX-listed bank. Instead, the company sees its future as being a customer-facing tech platform. Offering an ecosystem that engages consumers beyond their banking experience.

CBA tops ASX most valuable

With the Commonwealth Bank share price soaring to recorded highs in recent weeks, the bank is now ASX’s most valuable company. At the time of writing, its market capitalisation is hovering around $178 billion.

The valuation puts ASX-listed CBA just outside the top 100 largest listed companies in the world. Its value wedges it between US giants Starbucks and IBM.

The post CBA (ASX: CBA) tech hiring to amp-up as it nears $200 billion valuation appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 1.3%: Soul Patts-Milton merger, IGO jumps
• Leading brokers name 3 ASX shares to sell today
• Top broker says the Commonwealth Bank (ASX:CBA) share price is still overvalued
• Why are blue-chip ASX 200 shares selling off today?
• ASX 200 drops, CBA sinks, Boral sells US division

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Starbucks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: short July 2021 $120 calls on Starbucks. The Motley Fool Australia has recommended Starbucks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Propel Funeral Partners Ltd (ASX: PFP) are climbing slighty today. This comes after the company and an independent expert both recommended Propel’s shareholders vote in favour of its internalisation strategy.

At the time of writing, the Propel share price is $3.81 ­– 0.79% up on yesterday’s close.

Propel’s internalisation strategy will see the company take control of its management from Propel Investments Pty Ltd.

When Propel debuted on the ASX, it signed a 10-year agreement with the managing company. Now, due to share price woes, Propel wants to terminate the agreement.

Shareholders will vote on the internalisation strategy on 22 July.

Let’s take a closer look at what the strategy could mean for Propel.

What’s behind Propel’s internalisation strategy?

According to Propel, its management situation doesn’t align with the market’s environmental, social, and governance (ESG) expectations.

Propel believes that, since its initial public offering (IPO) in 2017, the growth of its share price hasn’t reflected its earnings.

Propel thinks its share price’s sluggishness could be due to its management style being misaligned with ESG expectations.

Additionally, the company believes many institutional investors are unable or unwilling to invest in Propel due to its external management.

What will change?

Currently, the management company is owned by entities associated with 3 of Propel’s co-founders-turned-executives.

As part of the internalisation strategy, the 3 co-founders will become employees of Propel.

Propel will also change its constitution to allow for 3 more board members, making an 8-person board.

Propel will pay a $15 million fee to terminate the agreement. Half of the fee will be paid in cash and the other half will be paid with Propel shares.  

The termination will see Propel avoiding the management fees it is currently paying. However, it will then be liable to pay its executives’ wages.

Since its IPO, Propel has paid its managing company $4.9 million, excluding GST. The 3 executives’ wages will cost Propel $1.6 million annually.  

The strategy will also see 14,732,667 escrowed shares released early. Half of the escrowed shares will be released next year and the other half in 2025.

An independent expert found the internalisation strategy isn’t fair, but it is reasonable. The expert also found the strategy’s advantages outweigh its disadvantages.

Propel’s independent directors have encouraged shareholders to vote in favour of the strategy.

Propel share price snapshot

Propel shares have been performing well on the ASX lately.

Currently, they are 33% higher than they were at the start of 2021. They have also gained 26% since this time last year.

The company has a market capitalisation of around $377 million, with approximately 99 million shares outstanding.

The post What’s driving the Propel (ASX:PFP) share price today? appeared first on The Motley Fool Australia.

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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 Propel Funeral Partners 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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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is bouncing back from yesterday’s selloff. At the time of writing, the benchmark index is up 1.3% to 7,331.9 points.

Here’s what is happening on the market today:

Soul Pattinson-Milton merger

The Milton Corporation Limited (ASX: MLT) share price is surging higher today after announcing a proposed merger with investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). The two companies intend to merge under an arrangement that will see the latter acquire 100% of the share capital in Milton it does not already own. The all-scrip proposal values Milton at approximately $6.00 per share. Both companies share the same chairman, Robert Millner.

IGO lithium transaction nears completion

The IGO Ltd (ASX: IGO) share price is charging higher today after revealing that a key condition precedent to forming a new lithium joint venture with Tianqi Lithium Corporation has progressed. In light of this, the clean energy focused mining company expects the transaction to complete on or before 30 June. The joint venture will initially be focused on the commissioning of Train 1 at the Kwinana Lithium Hydroxide Refinery.

Bank shares rebound

It has been a much more positive day of trade for Australia’s big four banks on Tuesday. All four are recording solid gains and helping to drive the ASX 200 higher. The best performer in the group has been the Commonwealth Bank of Australia (ASX: CBA) share price with a gain of 2.5%. This is despite Morgan Stanley maintaining its bearish view on the company’s shares.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Milton share price with a 12% gain. This follows the announcement of merger plans. The worst performer has been the Tyro Payments Ltd (ASX: TYR) share price with a 4% decline on no news.

The post ASX 200 up 1.3%: Soul Patts-Milton merger, IGO jumps appeared first on The Motley Fool Australia.

More reading

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• Top broker says the Commonwealth Bank (ASX:CBA) share price is still overvalued

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tyro Payments. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Milton Corporation Limited (ASX: MLT) shares are in the spotlight today following an announcement the two companies have agreed to merge.

The Soul Patts share price has remained relatively steady, lifting 0.46% at the time of writing, whereas the Milton share price has rocketed 14.40% in morning trade.

The two investment companies have signed a binding scheme implementation agreement (SIA) for Soul Patts to buy all the Milton shares it doesn’t already own.

Let’s take a closer look at today’s news from the two investment companies.

Soul Pattinsons to merge with Milton

According to Soul Pattinsons’ release, the merger will create a diversified investment company focused on long-term market performance, dividend growth, and new portfolio additions.

The merger will see Milton shareholders given a combination of Soul Pattinson’s scrips and three fully franked dividends worth up to 45 cents per share.

Combined, the offered scrips and dividends are worth $6 per share – a 20% premium on the Milton share price as of yesterday’s close.

After the merger, Soul Pattinsons will boast a market capitalisation of $10.8 billion – increasing from $7.2 billion. Its increased market capitalisation could also see Soul Patts with more index participation.

It also expects to have higher cash generation and a lower cost base from an increased portfolio of dividends.

Finally, the merger will see Soul Pattinsons with around 60,000 shareholders, which it believes will increase its liquidity.

Milton’s independent directors have recommended the merger to shareholders, as long as it doesn’t receive a better offer.

Additionally, the merger is subject to Milton shareholder approval and an independent expert’s judgment to see if the scheme is in Milton shareholders’ best interests and that no adverse changes affect either company until the merger is complete.

Soul Pattinson is one of the only ASX-listed companies to have never skipped paying a dividend. Additionally, it’s increased its dividend each year for the last 20 years.

The merger is expected to be complete by early October.

Commentary from management

Soul Pattinson’s managing director Todd Barlow commented on the merger:

This is a transformative merger bringing together two of Australia’s great investment companies to create a $10 billion group with enhanced liquidity, diversification, and access to a broad range of asset classes.

Milton’s CEO and managing director Brendan O’Dea said:

The transaction would create a unique investment company by bringing together Milton’s demonstrated long-term capabilities in listed equities and [Soul Pattinsons’] successful record of generating strong returns for shareholders across a range of actively managed public and private investments.

Soul Pattinsons share price snapshot

It’s been a tough year so far for the Soul Pattinsons share price.

It has gained 0.30% since the beginning of the year. However, it’s gained 55.71% since this time last year.

Milton share price snapshot

With today’s gains, the Milton share price is up 19.92% since the start of 2021.

It has also gained 38.16% over the last 12 months.

The post Milton share price rockets 14% after Soul Patts merger news appeared first on The Motley Fool Australia.

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• 2 ASX dividend shares that could provide steady income in retirement

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 owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australian share market has reached all-time highs, but according to one expert, there is still one sector that’s selling at a 30% discount.

There is constant commentary about the ageing population and the need for investment catering to older Australians.

So Citi senior investment specialist Mahjabeen Zaman is puzzled by how health shares have struggled recently.

“Australian healthcare stocks, which include some leading global companies, have underperformed our primary share market index, the S&P/ASX 200 Index (ASX: XJO), by 30% over the past 12 months,” he said on a Citi blog post.

“It is not a phenomenon restricted to Australia. In the United States, Bloomberg data shows the price of healthcare stocks, based on forward earnings estimates, trade at a 30% discount to the S&P 500 Index (SP: .INX).”

Zaman added that this situation provides investors with a golden opportunity to buy in for cheap.

“Healthcare will be a global focus for a long time to come… Life expectancy globally increased from 52 years in 1960 to nearly 73 years in 2019,” he said.

“Citi views increasing longevity as one of our unstoppable trends, which are long-term forces that revolutionise the way we live and do business globally.”

Zaman’s team reckons growth in healthcare revenues and profits will outpace other sectors just because of the ageing global demographics.

“Also, the potential ‘value’ of healthcare shares stands out, as most other sectors are trading at high valuations,” he said.

“Historically, healthcare has shown resilience on the downside when broader markets correct.”

3 leading ASX healthcare shares

Zaman especially likes 3 ASX stocks in particular — CSL Limited (ASX: CSL), Resmed CDI (ASX: RMD) and Sonic Healthcare Limited (ASX: SHL).

“A shared trait is they derive the majority of revenue from US sales, placing the companies in a prime position to do well as the US recovers from the pandemic.”

Resmed’s ungeared balance sheet and strong cash flow is attractive to Citi.

“We expect continued share buybacks likely in the absence of meaningful acquisition opportunities.”

The prospect of plasma donors in American returning in the post-COVID era gives CSL tremendous comeback potential.

“Plasma fractionation accounts for about 85% of CSL’s earnings,” said Zaman.

“We expect that as the year progresses plasma donors will return in the US, and that plasma collections will increase towards normal, leading to earnings upgrades next year.”

Sonic Healthcare is the third largest pathology services provider in the world, according to Zaman.

“Sonic owns the biggest privately held pathology lab in the US, Clinical Pathology Laboratories, as well as one of Europe’s largest, Bioscientia Healthcare,” he said.

“Management has made it clear the company’s balance sheet is under geared, and have a pipeline of merger and acquisition opportunities. It is actively bidding on a number of opportunities [for] mergers and acquisitions, contracts and joint ventures in Australia, UK, USA and Canada.”

Sonic’s shares were up 1% on Tuesday morning, trading at $37.92. They’re up 15% this year.

CSL stocks plunged 1.64% in early trade on Tuesday, to go for $299.98. That’s 5% up year-to-date.

Shares for Resmed rose 1.27% on Tuesday morning, selling for $31.86. They’ve ascended 16% this year so far. 

The post 3 top ASX shares in sector selling at 30% discount: expert appeared first on The Motley Fool Australia.

More reading

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• 2 blue chip ASX shares rated as buys

Tony Yoo 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 CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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The BetMakers Technology Group Ltd (ASX: BET) share price opened in positive territory on Tuesday after the company announced an update for fixed odds wagering in New Jersey.

At the time of writing, the BetMakers share price is up 1.69%, trading at $1.20 after touching an intraday high of $1.26 this morning.

What did BetMakers announce?

Investors are buying the BetMakers share price this morning after the company advised that the ‘Fixed Odds Bill’ to authorise “fixed odds wagering on horse races through a fixed odds wagering system“ was passed unanimously in both the Senate and General Assembly in New Jersey this morning.

In today’s statement, the company advised that Senate voted 40-0 in favour of the Fixed Odds Bill, after amendments were made to accommodate the horsemen groups and stakeholders.

The Fixed Odds Bill was then successfully passed through the General Assembly, after a unanimous 71-0 vote in favour.

The Bill will now go to Governor of New Jersey, Phil Murphy, for approval to become law.

If successful, New Jersey will be the first state to offer fixed odds betting options for horse racing.

BetMakers is eager for the passing of this Bill, with an exclusive 10-year agreement with the New Jersey Thoroughbred Horsemen Association and Darby Development LLC, the operator of Monmouth Park racetrack, to manage its fixed odds thoroughbred horse racing.

What did management say?

BetMakers CEO Todd Buckingham welcomed the news, saying:

We are pleased that the Bill, after minor amendments, has now passed full votes on the floor of the Senate and General Assembly in New Jersey. The legislative process has been thorough and exhaustive in terms of our consultative approach with lawmakers and stakeholders in the New Jersey racing industry.

We have done this with a view to setting the right legal and commercial framework for introducing Fixed Odds betting into the US through New Jersey.

Buckingham said the support for fixed odds “as a solution to facilitate growth in the horse racing industry in the US” was gaining momentum throughout the industry.

We are excited about what this opportunity means for the racing industry in New Jersey and more broadly in the US. We are also excited about what it enables for BetMakers as a Company, and our shareholders

BetMakers share price staging a comeback

BetMakers’ Tabcorp Holdings Limited (ASX: TAH) Wagering and Media business takeover offer plunged its share price from $1.60 on 27 May to a low of $1.015 on 7 June.

The Betmakers share price has since staged a minor comeback, bouncing more than 20% off lows to $1.20 at the time of writing.

The recent rally has been supported by a stream of positive news, including the completion of its Sportech acquisition and today’s Fixed Odds Bill milestone.

The post BetMakers (ASX:BET) share price lifts on wagering milestone appeared first on The Motley Fool Australia.

More reading

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• BetMakers and Zip were among the most traded ASX shares last week
• Why has the BetMakers (ASX:BET) share price fallen 22% this week?

Kerry Sun 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 Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group 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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