The Treasury Wine Estates Ltd (ASX: TWE) share price is sinking lower on Monday morning.

In early trade, the wine company’s shares are down 4% to $10.37.

Why is the Treasury Wine share price sinking?

Investors have been selling Treasury Wine shares on Monday after China’s Ministry of Commerce (MOFCOM) confirmed that it would be placing tariffs on Australian wine for five years.

This was the result of the MOFCOM’s final determination in its anti-dumping and countervailing investigations into certain Australian wine exports into China.

What was the final determination?

According to the release, MOFCOM’s final determination is that a combined anti-dumping and countervailing duty rate of 175.6% shall be applied to Treasury Wine’s Australian country of origin wine in containers of two litres or less imported into China. This duty rate is consistent with the provisional measures that were placed on its wines late last year.

This essentially means that a $50 bottle of wine would now cost $137.80 after duties have been applied.

The release notes that the final determination became applicable from 28 March and will remain in place for at least five years.

What now?

Treasury Wine has previously warned that demand for its portfolio in China will be extremely limited while these measures are in place. So, this looks set to be the case for at least the next five years.

In light of this, the company has reiterated that it is working hard to grow its business outside China.

Management commented: “As previously announced as part of its half year results release, TWE is executing a detailed response plan to maintain the long-term strength of its business model and brands, with benefits expected to progressively reach their full potential over a two to three-year period. Today’s final determination does not result in any change to those plans.“

More reading

• 5 things to watch on the ASX 200 on Monday
• Insiders have been buying SEEK (ASX:SEK) and this ASX share
• 2 top ASX ETFs to buy right now
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• Why Flight Centre, Northern Star, Southern Cross Media, & Treasury Wine are sinking

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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 Althea Group Holdings Ltd (ASX: AGH) share price is pushing high today after announcing a new product launch.

At the time of writing, the cannabis company’s shares are up 2% to 53 cents.

What did Althea announce?

This morning Althea announced further additions to its range of medicinal cannabis products.

According to the release, Althea has officially launched a new and innovative range of 20ml full-spectrum cannabis oil products. These products carry the same trade names, and utilise the same formulations, as existing in-market Althea 50ml and 100ml sized products.

The release explains that the 20ml sized product is designed to promote flexibility in a patient’s treatment. This is especially in the case of initiating patients and those suffering from intermittent illnesses.

Management notes that the smaller unit size provides new medicinal cannabis patients with an option to trial the medication over the recommended two or three-week titration period. After which, in conjunction with their Healthcare Professional, they can determine if the treatment was beneficial for them.

The company believes that when the patient experiences a positive outcome from their medication, they will transition to the more economical larger sized bottle.

Why did it make the move?

Althea believes that costs have prohibited many patients from trialling medicinal cannabis as a treatment option.

It notes that a recent Australian Government inquiry received evidence that cost was “…one of the biggest barriers for patients struggling to access medicinal cannabis.”

By expanding its product portfolio, the company aims to provide price-sensitive patients with a lower entry point, potentially boosting patient acquisition.

Althea’s CEO, Joshua Fegan, commented: “At Althea, we understand that price remains a challenge for many potential new patients that want to trial medicinal cannabis for their conditions. We believe the launch of the new Althea ‘flexi’ 20ml cannabis oil range will be a great way to provide more access to patients via trial size products. This will in turn build confidence in our medicines and brand as we continue to be the first choice for a growing number of Australia’s medicinal cannabis patients.”

Following today’s gain, the Althea share price is now up 20% in 2021.

More reading

• How Mexico could turbocharge ASX cannabis shares
• Why the Althea (ASX:AGH) share price is pushing higher today
• Why the Althea (ASX:AGH) share price is pushing higher today

Motley Fool contributor James Mickleboro 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 AVZ Minerals Ltd (ASX: AVZ) share price has been a positive performer on Monday.

In morning trade the lithium-focused mineral exploration company’s shares are up 7.5% to 21.5 cents.

Why is the AVZ Minerals share price charging higher?

Investors have been buying AVZ Minerals shares this morning following the announcement of a new offtake agreement.

However, rather than being a deal for its lithium product, this offtake agreement is actually for its tin concentrate.

According to the release, AVZ Minerals has signed a binding three-year offtake agreement for the sale of 600 metric tonnes per annum of tin concentrate to Kalon Resources. The pricing will be based on a formula linked to LME tin price. This represents ~43% of its expected tin concentrate production.

What is Kalon?

Kalon is a fully owned subsidiary of Noble Group Holdings. The release explains that it specialises in the physical commodity trading and supply chain management of industrial minerals and metals. This includes concentrates of tin, tungsten, niobium, tantalum, alumina, and aluminium. It also handles special ores such as chrome, manganese and iron ore.

Management notes that Kalon is a major participant in the tin market, handling several thousand tonnes of tin concentrate a year.

AVZ’s Managing Director, Nigel Ferguson, commented: “After an unexpected delay in finalising this contract, we are very pleased to have finally signed with Kalon, our first tin offtake agreement – just weeks after having signed our second lithium offtake agreement that cumulatively provides binding commitments for more than 50% of our saleable SC6 product.”

“Given the rising LME cash price of tin metal, up approximately 30% YTD, this offtake agreement is significant for the Manono Project and also significant given that Kalon is a considerable participant in the tin industry. While this agreement represents a relatively small, but growing portion of revenue for the Manono Project, it does confirm another large international business is willing to secure future supply from the project.”

“Similar to our recent lithium offtake agreements, this tin concentrate offtake agreement with Kalon will assist the Company in meeting certain conditions precedent which are required from our prospective financiers. Again we look forward to finalising some further offtake agreements for the remainder of the project’s products to satisfy some of the criteria our potential lenders have requested.”

More reading

• The AVZ Minerals (ASX:AVZ) share price jumped 18% to a 52-week high today
• Why AVZ, Legend Mining, Nuix, & Vocus shares are surging higher
• Why the AVZ Minerals (ASX:AVZ) share price is surging 15% higher today

Motley Fool contributor James Mickleboro 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 Austal Limited (ASX: ASB) share price is pushing higher on Monday morning.

At the time of writing, the shipbuilder’s shares are up almost 2% to $2.36.

Why is the Austal share price pushing higher?

Today’s gain appears to have been driven by a combination of improving investor sentiment and the release of a positive announcement.

In respect to the latter, this morning Austal announced that construction has officially commenced on Austal USA’s new steel shipbuilding facility in Mobile, Alabama.

According to the release, Austal USA hosted a ceremony at the company’s shipyard on Friday to mark the start of the construction of the facility that will provide the capability to meet increasing demand by the U.S. Navy and U.S. Coast Guard for steel vessels.

The construction on the facility is expected to be complete by April 2022.

“Significant milestone”

Austal‘s Chief Executive Officer, Paddy Gregg, believes this is a significant milestone in Austal USA’s history. He also sees it as a strategic development in the shipyard’s capability.

Mr Gregg said: “Austal USA’s new steel shipbuilding facility puts us in a prime position to target numerous major steel shipbuilding programs included in the U.S. Navy’s shipbuilding plan. Today’s ground-breaking marks the start of construction of facilities that will enable Austal USA to build the next generation of the U.S. Navy and U.S. Coast Guards’ ships.“

Interim Austal USA President, Rusty Murdaugh, added: “As demand for the greater and larger Navy and Coast Guard fleets grows, Austal USA is investing to meet those changing requirements. We’re investing in our people, we’re investing in our processes and we’re investing in our facilities and capabilities.”

Austal will be spending approximately US$100million on the new facility. However, this will be co-funded by the United States Government.

More reading

• ASX 200 Weekly Wrap: Inflation fears hold ASX down
• These were the worst performers on the ASX 200 last week
• Why Austal, Boral, Spark NZ, & Splitit are tumbling lower
• Why the Austal (ASX:ASB) share price will be on watch today
• 5 things to watch on the ASX 200 on Wednesday

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. 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 Computershare Ltd (ASX: CPU) share price will return to trade today after nearly a week in a trading halt. This comes after a pre-market update on the group’s entitlement offer this morning.

What’s the latest on the Computershare share price?

Computershare this morning said it has completed the institutional component of its entitlement offer. The Aussie share registry group announced the underwritten 1 for 8.8 pro-rata accelerated renounceable entitlement offer on 24 March 2021.

The institutional entitlement offer raised ~$500 million at an offer price of A$13.55 per new share. Computershare reported a 94% take-up rate from eligible institutional shareholders. That offer price represents a 9.61% discount to the 23 March closing Computershare share price of $14.99.

Computershare is using the proceeds to partially fund its acquisition of Wells Fargo Corporate Trust Services (CTS) for US$750 million (~A$982 million). CTS is is a leading US-based provider of trust and agency services to government and corporate clients.

The now-completed institutional component is just one part of the group’s capital raising. Computershare is seeking to raise ~$335 million from retail investors for a total ~$835 million capital raising. The retail entitlement offer will open on 31 March and close on 19 April 2021.

Computershare will issue the new shares from the institutional raise on Tuesday 6 April. However, the Computershare share price should return to active trade today.

Computershare said its ordinary shares are expected to resume trading from market open today on an “ex-entitlement” basis. Per the release, the trading halt will be lifted and shares will resume trading today.

Foolish takeaway

The Computershare share price is one to watch this morning after an update on the institutional part of its capital raising.

As at last Tuesday’s close, Computershare was trading just shy of its $15.50 per share 52-week high. That has come about after a 54.4% surge in the last 12 months as investment in ASX shares exploded during the coronavirus pandemic.

At its last close, the Aussie registry group had a market capitalisation of $8.1 billion and a 3.1% dividend yield.

More reading

• ASX 200 rises, Airtasker soars again, Westpac considers NZ
• ASX 200 up 0.45%: Premier Investments results, Xero acquisition, Computershare halted
• Computershare (ASX:CPU) shares halted after announcing major US$750m acquisition
• ASX share market on watch: Goldman Sachs shares thoughts on inflation and interest rates
• Why ASX 200 tech shares could be in for another wild session

Motley Fool contributor Ken Hall 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 Inghams Group Ltd (ASX: ING) share price is on watch this morning after the company announced a leadership change.

Jim Leighton will be stepping down from his roles as CEO and managing director from today, with non-executive director Andrew Reeves stepping up to fill the top job.

The chicken and turkey producer’s shares have had a good run lately. The Inghams share price climbed 5.5% last week, closing at $3.60 on Friday.

New CEO on the block

It will be interesting to see how the Inghams share price responds today following the company’s latest leadership update. Inghams’ new CEO comes with plenty of experience including his most recent role as CEO of George Weston Foods.

He has also held managing director roles at such companies as Lion Nathan Limited, Coco-Cola Amatil Ltd (ASX: CCL) and The Smiths Snack Food Company.

According to the company’s release, Reeves is also currently an independent non-executive director of Credit Union Australia, Netget Limited and Keytone Dairy Corporation Ltd (ASX: KTD).

In this morning’s announcement, Inghams chair Peter Bush said Leighton, who has held Inghams’ top job since 2018, has significantly improved the operations of the company in his time as CEO.

Leighton is leaving the CEO role to return to the United States due to personal reasons, said Bush.

Commentary from management

Bush thanked Leighton on behalf of the board in this morning’s announcement and reiterated the company’s faith in Reeves.

The board and I thank Jim and his family for managing the many challenges they have faced since Jim’s arrival over two years ago. Jim and his team have built a solid foundation for growth. We wish Jim and his family all the best.

Ingham’s is fortunate to have someone of Andrew Reeves’ experience and calibre on our board and in a position to become our Chief Executive Officer. His great knowledge of Ingham’s will ensure a smooth transition and no loss of momentum in the business. 

Inghams share price snapshot

2021 has been a good year on the ASX for the Inghams share price. The company’s shares are currently trading more than 13% higher than the start of the year. Inghams shares are also up 5.88% over the last 12 months.

Inghams has a market capitalisation of around $1.3 billion, with approximately 371 million shares outstanding.

More reading

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Motley Fool contributor Brooke Cooper 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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Worley Ltd (ASX: WOR) shares will be on watch this morning following the disinvestment of the company’s public infrastructure advisory business. The Worley share price last traded at $10.54 at Friday’s market close.

Quick take on Worley

A leading global engineering company, Worley provides design and project delivery services, including maintenance, reliability support services and advisory services. The business operates in the energy, chemical and resources sectors.

What did Worley announce?

The Worley share price could be on the move today as investors digest the company’s latest update.

According to its release, Worley has sold off its Capital Projects Advisory (CPA) business to TSA Management (TSA).

Established in 2001, TSA is a consulting firm that specialises in program and project management. The company services private and public clients in the infrastructure and property sectors across Australia and New Zealand.

The deal will see Worley receive a cash consideration of approximately $48 million from TSA.

CPA is considered as a small part of the larger overreaching Advisian consulting business. The division specialises in capital project delivery within the public infrastructure sector, housing about 110 staff throughout the ANZ region.

Worley noted that the sale of CPA is in line with its strategy on producing sustainable energy, chemicals and resources.

Worley CEO Chris Ashton touched on the disinvestment, saying:

The sale supports Worley’s continued investment in our strategic growth areas to accelerate our role in supporting customers on their energy transition, sustainability and digitalization journey.

About the Worley share price

In the last 12 months, the Worley share price has accelerated with gains of more than 75%. Year to date, however, the company’s shares have faltered and are down by around 9%. The engineering company’s shares last reached a 52-week high of $14.01 in late November of last year.

Based on the current valuation, Worley presides a market capitalisation of roughly $5.5 billion, with around 522 million shares outstanding.

More reading

• The Worley (ASX:WOR) share price is lifting today. Here’s why
• ASX 200 drops again, Zip sinks, Worley wins
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Motley Fool contributor Aaron Teboneras 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 efficient market hypothesis says that asset prices reflect all available information.

The consequence is that it’s impossible for anyone to consistently “beat the market”, unless they have private information that no one else has. That is, illegal insider trading.

Forager Funds senior analyst Gareth Brown does not subscribe to this theory 100%, but finds the idea “useful”.

“Markets are mostly efficient, most of the time,” he posted on the Forager blog.

“When it’s time to make any investment, we better have a good theory as to why we’re right and ‘the market’ is wrong.”

Brown noted that now, more than ever, the theory applies because data is so freely (or cheaply) accessible to everyone.

“Seamless information flow, more analysts, more computer power. These are but a few reasons why markets are also getting more efficient over time.”

However, one shouldn’t give up on finding true bargains because “markets can be surprisingly ignorant from time to time”, according to Brown.

“Especially at the smaller end of the market,” he said.

“Their periodical insanities may also be getting more extreme too.”

Brown took the company ThinkSmart Limited (LON: TSL) as a recent example.

The British ‘cousin’ of Afterpay Ltd (ASX: APT)

ThinkSmart’s fortunes are closely correlated to ASX market darling Afterpay.

“A few years ago when Afterpay was focused on Australia, tiddler ThinkSmart started a copycat business in the UK called Clearpay,” said Brown.

“When Afterpay decided to take on the UK, they deemed it wiser to acquire the fledgling Clearpay than start from scratch.”

After the buyout, ThinkSmart’s major asset ended up being its 6.5% ownership in Afterpay’s UK arm. The terms of the acquisition will eventually force this stake to be sold to the parent in 2023 or 2024. 

But for now, the value of ThinkSmart’s stocks should be synchronised with Afterpay. That is, if the market was 100% efficient.

“Yet here’s what happened over the first 6 months of 2020. Afterpay shares rose 99%. And ThinkSmart shares fell 11%,” Brown said.

Inefficient market! That was the time to buy into ThinkSmart.

“And what about the almost 9 months since 1 July 2020? Afterpay rose a further 73%, ThinkSmart 🚀 271%.”

So there’s an example where everyone knew of a direct relationship between two companies, but the market still greatly underpriced ThinkSmart for a period.

“What about that all-seeing, all-knowing market?” said Brown.

“Well, there’s still plenty a diligent investor can do to gain an edge over it. Look hard and think smart.”

Other bargain examples

There are many other examples of market inefficiency in The Motley Fool’s weekly Ask A Fund Manager series.

Each professional investor is asked what her or his most proud stock purchase was. And inevitably the answer points to a share that was undervalued at the time the fundie picked it up.

“Probably in recent times, the stock that perhaps I’m most proud of would be something more like Carsales.com Ltd (ASX: CAR),” SG Hiscock High Conviction Fund portfolio manager Hamish Tadgell said in January.

“We bought it when it was out of favour, I think it was about October 2018. On the back of declining new car sales volumes and concerns around that. In that time, we’ve probably doubled our money since.”

Tribeca Investment Partners portfolio manager Jun Bei Liu said in December that her fund bought up Afterpay for cheap during the depths of the COVID-19 crash.

“When the world was falling apart in March, we had seen an incredible amount of opportunity… We essentially bought more of the stock around that base when it hit around $10.”

Afterpay shares are now around the $105 mark, while they hit as high as $160 in February.

“We’ve done very well… One thing about those high-growth innovative businesses or an innovator of a sector is that many of them fail and rarely do you get one that actually makes it. And if they do, they’re your 10 baggers,” Liu said.

More reading

• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• 5 things to watch on the ASX 200 on Monday
• 2 of the best ASX growth shares to buy in April
• How does the Afterpay (ASX:APT) share price size up against US-listed Affirm?
• Afterpay (ASX:APT) share price hits 3-month low: Time to buy?

Motley Fool contributor Tony Yoo owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended carsales.com 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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Is the Telstra Corporation Ltd (ASX: TLS) share price a buy? The Telstra share price has been rising in recent weeks, going up 11% in two weeks.

What has happened recently?

The telco has been making progress on its proposed legal corporate structure so that it can better realise the value of its infrastructure assets, take advantage of potential monetisation opportunities and create additional value for shareholders.

It plans to separate the business into a few different segments.

The first, called ‘InfraCo Fixed’, would own and operate Telstra’s passive or physical infrastructure assets: the ducts, fibre, data centres and exchanges that underpin Telstra’s fixed telecommunications network. The aim of this is to provide optionality to create additional value from these assets in the future.

Next, ‘InfraCo Towers’, which would own and operate Telstra’s passive or physical mobile tower assets, which Telstra is looking to monetise given the strong demand and compelling valuations for this type of high-quality infrastructure according to Telstra.

The third is called ‘ServeCo’, which would continue to focus on creating innovative products and services, supporting customers and aiming to deliver the best customer experience. ServeCo would own the active parts of the network, including the radio access network and spectrum assets to ensure Telstra continues to maintain its lead of mobile coverage and network superiority in the industry, according to the telco.

Finally, Telstra said it also intends to establish its international business under a separate subsidiary within the Telstra business to keep that part of the business, including subsea cables, together as one entity.

The Telstra Chair John Mullen said that realising more value from Telstra’s infrastructure assets was one of the fundamental pillars of Telstra’s T22 strategy.

Mr Mullen said:

Even before the COVID-19 pandemic reminded us of the enormous importance of telecommunications infrastructure globally, we could see the opportunity to provide transparency of our assets and opportunities to deliver additional value for shareholders.

The legal restructure is a step toward that outcome. It also reflects the new post-COVID world we are living in and the fact that our assets are a critical part of the infrastructure that is enabling that nation’s growing digital economy.

FY21 half-year result

Telstra also announced a few different things in its half-year result. It said that income dropped 10.4% to $12 billion and net profit after tax (NPAT) declined by 2.2% to $1.1 billion.

The company continues to work on its goal of reducing costs and now management have set “bold” earnings before interest, tax, depreciation and amortisation (EBITDA) targets of mid to high single digit growth of underlying EBITDA in FY22 and $7.5 billion to $8.5 billion of underlying EBITDA in FY23.

What do brokers think of the Telstra share price?

There are a mixture of thoughts about Telstra shares at the moment.

Morgan Stanley has a price target of $3 for Telstra and rates it as a sell.

However, Ord Minnett thinks the Telstra share price is a buy and has a price target of $4.05.

The performance of Telstra shares may depend on its ability to hit those EBITDA targets. 

More reading

• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• Top brokers name 3 ASX shares to buy next week
• Where to reinvest your Telstra (ASX:TLS) dividends
• Why the Telstra (ASX:TLS) share price just hit a 7-month high
• Why Galaxy, HUB24, Paradigm, & Telstra shares are pushing higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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 is on watch after an investor update from the Aussie data analytics group.

Why is the BetMakers share price on watch?

For those that may not know, BetMakers is a technology and software development group that is used across the wagering and racing industries around the world. The BetMakers share price has been hot property after surging 741.7% in the last 12 months. 

BetMakers and its subsidiaries now operate in over 30 countries worldwide. That includes more than 200 global bookmaking, racing, sport and digital customers. In this morning’s release, BetMakers reported that it is well-positioned to “continue to deliver strong growth in its domestic market as well as key international markets including the US”.

First-half revenue for 2021 grew 67% from 2H 2020 thanks to strong managed trading services and content distribution performance. BetMakers is expecting Q3 2021 revenues up 25% on the prior quarter to ~$5 million. The company’s Sportech acquisition is expected to complete in Q4 2021.

The BetMakers share price is one to watch after the company provided a product update this morning. BetMakers is expecting four more customers to launch on its white label betting platform in Q4 2021. There are now 26 digital white-label bookmakers globally with 70% of revenues coming from Australasia in 1H 2021.

BetMakers’ strategic focus remains on four key categories. These are major business to business (B2B) partnerships, its global racing network, the US strategy and strategic investment.

Foolish takeaway

The BetMakers share price is one to watch as investors take into account the latest update. Shares in the Aussie technology group have surged in 2021 as several key wagering sports continued despite the coronavirus pandemic.

As at Friday’s close, BetMakers had a market capitalisation of $783.4 million with a 3.5% dividend yield.

More reading

• 4 ASX real estate shares going ex-dividend this week
• Why the News Corp (ASX:NWS) share price is one to watch today
• ‘Chickens don’t make money’: fundie
• More Aussies now think shares are better than real estate
• Synlait (ASX:SM1) share price on watch after reporting huge profit decline

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

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