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  • ASX 200 jumps 0.8%: Big four banks storm higher, TechnologyOne sinks

    Investment stock market Entrepreneur Business Man discussing and analysis graph stock market trading,stock chart concept

    At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. The benchmark index is currently up 0.8% to 5,967.8 points.

    Here’s what has been happening on the market today:

    Bank shares storm higher.

    The big four banks have started the week with a bang. All four banks are on the rise on Monday and helping to drive the ASX 200 higher. The best performer in the group is the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price with a 2% gain. Bargain hunters appear to be swooping in after bank shares dropped lower last week following a rise in coronavirus cases. 

    Oil Search impairment.

    The Oil Search Limited (ASX: OSH) share price is tumbling lower on Monday after announcing a sizeable impairment. The energy producer expects to recognise a non-cash, pre-tax impairment charge of US$360 million to US400 million in its first half results. This reflects a reduction in the carrying value of its assets “after taking into account the potential longer-term impact of prevailing economic conditions, the outlook for oil and gas prices and the current status of other factors that could impact on value realisation.”

    TechnologyOne responds to short attack.

    TechnologyOne Ltd (ASX: TNE) has hit back at Hong Kong-based GMT Research for claiming that the enterprise software company is using accounting tricks to pull forward revenue and profits. The research firm alleges that it is doing this to hide a slowdown in its growth. TechnologyOne has responded by advising that the claims are false and misleading. It intends to refer the matter to ASIC. That hasn’t stopped the TechnologyOne share price from taking a tumble today.

    Best and worst ASX 200 shares.

    The IGO Ltd (ASX: IGO) share price has been the best performer on the ASX 200 index on Monday with a 4.5% gain. This follows a decent rise in the nickel price on Friday night. The worst performer has been the TechnologyOne share price with a decline of 6%. This follows the aforementioned attack by GMT Research.

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    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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Analog Devices Near Deal to Buy Maxim for $17 Billion

    Analog Devices Near Deal to Buy Maxim for $17 Billion(Bloomberg) — Analog Devices Inc. is close to an all-stock agreement to acquire Maxim Integrated Products Inc., according to people familiar with the matter.The semiconductor companies are talking about a deal that values San Jose, California-based Maxim at more than its current market capitalization of roughly $17 billion. Norwood, Mass.-based Analog has a market value of $46 billion and also has a large office in the San Jose area. The deal could be announced as early as Monday, though discussions could still fall apart, said the people, asking not to be named discussing private negotiations.Representatives for Analog Devices and Maxim declined to comment. The Wall Street Journal first reported the negotiations.Acquisitions are starting to return after a lull of several months caused by the Covid-19 pandemic. This comes on the heels of Uber Inc. announcing a $2.65 billion deal for Postmates Inc., Allstate Corp. agreeing to a record $4 billion takeover of National General Holdings Corp. and Warren Buffett’s Berkshire Hathaway Inc. spending roughly the same amount on a gas pipeline and storage assets.Some chip deals have either been delayed or abandoned if they require approval in China, the world’s largest market for semiconductors. The process has been complicated by the ongoing trade war between China and the U.S.Analog Devices is currently less than half the size of market leader Texas Instruments Inc. by revenue. While Maxim wouldn’t allow it to close the gap totally, it would broaden the range of products in the analog portfolio, something that Texas Instruments has touted as helping to cement its dominance.All three companies specialize in analog and embedded computing components. Once a sleepy backwater of the industry, this segment has enjoyed a resurgence as the list of uses and customers has grown in recent years. Analog chips convert real-world things like sound and pressure into electronic signals, and the rush to add automation to factory equipment and buildings and to move cars toward a world where they won’t need human drivers has stirred new demand.It’s also a very profitable area of the chip industry. Analog Devices and Maxim have gross margins, or the percentage of sales remaining after deducting the cost of goods sold, in the region of 65%.Since 2015, the Philadelphia Stock Exchange Semiconductor Index has tripled in value. The benchmark index now has a market capitalization of more than $1.5 trillion. Over that same period, chip companies have been increasingly consolidating to help them lower costs and serve customers that have done the same. Their earnings have become more predictable and their cash generation has provided them with war chests and the ability to carry debt they couldn’t have sustained in the past.(Updates with further details from fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Chinese Biotech Beigene to Raise $2.1 Billion in Share Sale

    Chinese Biotech Beigene to Raise $2.1 Billion in Share Sale(Bloomberg) — Chinese biotech company Beigene Ltd. plans to raise $2.1 billion in a direct offering of 145.8 million shares to fund drug research and market its treatments in the U.S. and China, said the Nasdaq-listed company on Monday.The shares will be priced at $14.23 each, equivalent to a price of $185 per American Depository Share — 5.6% lower than its closing price on Friday. The offering is expected to close on or around July 15, said the company, whose shares are also traded in Hong Kong.Buyers in the share sale include investment firm Baker Bros. Advisors LP and American generics giant Amgen Inc., which last year had purchased a 20.5% stake in Beigene for $2.7 billion to jointly develop cancer therapies. China’s New Cancer Drugs Are Much Cheaper Than U.S. RivalsThe share sale comes after the Beijing-based company’s blood cancer therapy became the first Chinese cancer drug to receive approval from the U.S. Food and Drug Administration last November, positioning Beigene as one of the most promising Chinese biotech companies taking on the world’s biggest pharmaceutical firms in medical innovation and scientific research.Investment into Chinese biotech startups is surging as the opening up of the Asian giant’s $132 billion pharmaceutical market creates an unprecedented profit-making opportunity for health-care companies. The Amgen stake, one of the first major tie-ups between American and Chinese drugmakers, was widely seen as a vote of confidence in Beigene’s pipeline.The company has received approval in China for its version of cutting-edge cancer immunotherapy treatments known as PD-1 drugs, which uses the body’s own immune system to fight cancer cells. It’s also licensed several drugs from Celgene Corp. to market in China.(Updates throughout with more info)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Hong Kong People Let Their Voices Be Heard: LegCo’s Yeung

    Hong Kong People Let Their Voices Be Heard: LegCo’s YeungJul.12 — Hong Kong Legislative Council Member and Civic Party Leader Alvin Yeung discusses the voter turnout for the opposition party primaries in Hong Kong amid the coronavirus pandemic and why the democratic candidates are concerned over the upcoming election in September. He speaks on “Bloomberg Daybreak: Asia.”

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  • Why Domain, OceanaGold, Praemium, & TechnologyOne are tumbling lower

    graph of paper plane trending down

    In late morning trade the S&P/ASX 200 Index (ASX: XJO) is following the lead of U.S. markets and pushing notably higher. At the time of writing the benchmark index is up 1% to 5,979.2 points. 

    Four shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

    The Domain Holdings Australia Ltd (ASX: DHG) share price has continued its slide and is down almost 4% to $3.03. Investors continue to sell the property listings company’s shares amid concerns its performance could be negatively impacted by the spike in coronavirus cases in Victoria. Domain is understood to have a strong presence in the Melbourne market.

    The OceanaGold Corp (ASX: OGC) share price has crashed 7% lower to $3.25. The catalyst for this was an announcement by the gold miner which reveals that the Philippines Court of Appeals has denied its application for an injunction for its Didipio operation. OceanaGold was hoping for an injunction to allow its operations to continue while it challenges an order to restrain activities at the site.

    The Praemium Ltd (ASX: PPS) share price is down 6% to 44.5 cents following the release of its fourth quarter update. According to the release, global platform funds under administration reached $8.9 billion at the end of the quarter. This was an increase of 8% and driven by net inflows of $459 million and positive market movements of $400 million.

    The TechnologyOne Ltd (ASX: TNE) share price has dropped 5% to $8.31. Investors have been selling the enterprise software company’s shares after Hong Kong research firm GMT Research alleged that it is using accounting tricks to pull forward revenue and profits. TechnologyOne has responded by advising that the claims GMT Research has made are false and misleading. It intends to refer the matter to ASIC.

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    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    *Returns as of June 30th

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    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 Praemium Limited. The Motley Fool Australia has recommended Praemium Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • How does the Fortescue share price compare to its peers?

    Share investor with chess pieces deciding to buy or sell ASX shares

    The Fortescue Metals Group Limited (ASX: FMG) share price has rocketed 38.15% higher in 2020 (at the time of writing). On paper, that’s a significant outperformance compared to the S&P/ASX 200 Index (ASX: XJO), which has fallen 12.09% lower this year.

    But how does the Fortescue share price stack up against its fellow Aussie iron ore miners?

    How does the relative value look?

    The first thing about relative valuation is defining an appropriate peer group. According to the Australian Department of Industry, Fortescue is part of the ‘Big 4’ producers alongside BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Brazil-based Vale.

    That means BHP and Rio are probably decent comparisons for the Fortescue share price. I’ve whipped up a quick table of some key metrics to compare the Aussie iron ore miners right now.

      Fortescue BHP Rio Tinto
    Market Capitalisation A$46.09 billion A$172.61 billion A$36.71 billion
    Net Assets (Feb 2020) US$12.5 billion US$52.4 billion US$45.2 billion
    YTD share price change +38.15% -7.56% -3.3%
    P/E ratio 6.45 13.76 14.12
    Dividend yield 6.68% p.a. 5.81% p.a. 5.75% p.a.

    Data source: Google Finance, Table: Author’s own

    What separates Fortescue from its peers?

    Based on the above table, it’s easy to see that Fortescue has a couple of things going for it.

    While BHP and Rio shares have slumped in 2020, the Fortescue share price is up 38.15% to $14.95 per share at the time of writing.

    That’s a remarkable recovery, given it was hammered 36.3% in the March bear market from its January 2020 all-time high.

    One big factor was the Aussie iron ore miner’s strong quarterly result in April. That announcement was highlighted by record third-quarter iron ore shipments of 42.3 million tonnes, up 10% year on year.

    However, Fortescue is still trading at a lower P/E ratio than both BHP and Rio. That could mean the Fortescue share price is a good buy right now, but where is it headed in 2020?

    What’s the outlook for the Fortescue share price?

    I think the technical environment remains quite strong for the Aussie iron ore miners. Global iron ore prices have surged in recent months, which bodes well for the August earnings season.

    There’s also the potential for an Aussie infrastructure boom to boost demand for steel further in 2020.

    There are certainly some potential headwinds looming. Frosty relations with China (a major iron ore importer) and a global economic slowdown are two of those.

    The Fortescue share price is also approaching its all-time high of $15.25. That could mean it’s a risky buy near the top of its trading range.

    Personally, I think for a P/E ratio of 6.4 it could be a steal. However, I’ll be waiting until the group’s August earnings result before buying in.

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    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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Did Hedge Funds Make The Right Call On Immunomedics, Inc. (IMMU) ?

    Did Hedge Funds Make The Right Call On Immunomedics, Inc. (IMMU) ?The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]

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  • Analog Devices Near Deal to Buy Maxim for $17 Billion

    Analog Devices Near Deal to Buy Maxim for $17 Billion(Bloomberg) — Analog Devices Inc. is close to an all-stock agreement to acquire Maxim Integrated Products Inc., according to people familiar with the matter.The semiconductor companies are talking about a deal that values San Jose, California-based Maxim at more than its current market capitalization of roughly $17 billion. Norwood, Mass.-based Analog has a market value of $46 billion and also has a large office in the San Jose area. The deal could be announced as early as Monday, though discussions could still fall apart, said the people, asking not to be named discussing private negotiations.Representatives for Analog Devices and Maxim declined to comment. The Wall Street Journal first reported the negotiations.Acquisitions are starting to return after a lull of several months caused by the Covid-19 pandemic. This comes on the heels of Uber Inc. announcing a $2.65 billion deal for Postmates Inc., Allstate Corp. agreeing to a record $4 billion takeover of National General Holdings Corp. and Warren Buffett’s Berkshire Hathaway Inc. spending roughly the same amount on a gas pipeline and storage assets.Some chip deals have either been delayed or abandoned if they require approval in China, the world’s largest market for semiconductors. The process has been complicated by the ongoing trade war between China and the U.S.Analog Devices is currently less than half the size of market leader Texas Instruments Inc. by revenue. While Maxim wouldn’t allow it to close the gap totally, it would broaden the range of products in the analog portfolio, something that Texas Instruments has touted as helping to cement its dominance.All three companies specialize in analog and embedded computing components. Once a sleepy backwater of the industry, this segment has enjoyed a resurgence as the list of uses and customers has grown in recent years. Analog chips convert real-world things like sound and pressure into electronic signals, and the rush to add automation to factory equipment and buildings and to move cars toward a world where they won’t need human drivers has stirred new demand.It’s also a very profitable area of the chip industry. Analog Devices and Maxim have gross margins, or the percentage of sales remaining after deducting the cost of goods sold, in the region of 65%.Since 2015, the Philadelphia Stock Exchange Semiconductor Index has tripled in value. The benchmark index now has a market capitalization of more than $1.5 trillion. Over that same period, chip companies have been increasingly consolidating to help them lower costs and serve customers that have done the same. Their earnings have become more predictable and their cash generation has provided them with war chests and the ability to carry debt they couldn’t have sustained in the past.(Updates with further details from fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Why I think the Polynovo share price is a buy right now

    road sign saying opportunity ahead against sunny sky background

    This year has been a bit of a mixed bag for ASX healthcare companies. Many have seen their share prices surge higher as investors sought out the safety of defensive shares in the face of extreme economic uncertainty.

    The share price of respiratory disease specialist Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) has skyrocketed almost 60% higher this year, while shares in US-based competitor ResMed Inc (ASX: RMD) are also up around 30%.

    But other big-name companies have struggled to ignite the market. Despite massive swings in its share price over recent months, leading biotech company CSL Limited (ASX: CSL) has only managed gains of a little over 2% so far this year. And Australian healthcare giant Cochlear Limited (ASX: COH) was so adversely impacted by the coronavirus pandemic that it had to withdraw its FY20 earnings guidance back in March.

    In a trading update to the market released in May, Cochlear reported that sales revenues for the month of April had declined by 60% versus April 2019. The massive decline was due mostly to many countries postponing elective surgeries as they increased hospital capacity for coronavirus patients.

    Whether or not sales will bounce back in future months as countries control the spread of COVID-19 will remain to be seen, but the market doesn’t seem too confident. The Cochlear share price is down over 15% so far this year – and that’s despite it recovering 23% since bottoming out at a 52-week low price of $154.6 in late March.

    Why is the current Polynovo share price a buy?

    In the face of such extreme volatility and uncertainty, it’s a surprise that more investors haven’t flocked to Polynovo Limited (ASX: PNV), in my opinion. Polynovo is a junior healthcare company with a focus on biodegradable medical devices that aid in skin tissue repair. Its flagship medical technology is called NovoSorb, a synthetic polymer matrix that clinicians can use to treat serious burn and skin trauma patients.

    Polynovo had long stated that, despite the logistical difficulties faced by its sales team due to COVID-19 travel restrictions, it hadn’t seen any adverse financial impacts from the pandemic. In an update released to the market on Friday, Polynovo reported record high monthly sales in the US in June, plus the company’s first sales in the UK. Sales for the June quarter increased by 33% over the previous quarter, and the company reiterated its FY20 sales guidance for sales growth of at least 100% over FY19.

    And yet, on the day of that announcement, Polynovo shares still slid 0.41% lower to $2.43. At today’s price of $2.39, the Polynovo share price is 27% lower than the 52-week high of $3.285 it reached in February, despite the business’ continued underlying sales growth.

    Should you invest?

    The growth in its sales numbers mean that Polynovo is probably in a stronger financial position now than it was prior to the coronavirus crisis. Plus, it has proven that it can outperform bigger players in the healthcare sector, even in a crisis.

    At these prices, I would suggest that Polynovo offers great value for new investors, and I think it is in a great position to deliver sustained growth over the longer-term.

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    Rhys Brock owns shares of Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., and POLYNOVO FPO. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Aussie dollar range bound amid growing COVID19 concerns

    Aussie dollar range bound amid growing COVID19 concernsPosted by OFX AUD – Australian Dollar The Australian Dollar is fractionally lower this morning against the US Dollar trading around 0.6950. The advance of the local currency seems to be stalling just ahead of a key resistance levels against the Greenback having failed to extend the weeks early uptick and push … Continue reading "Aussie dollar range bound amid growing COVID19 concerns"The post Aussie dollar range bound amid growing COVID19 concerns appeared first on .

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