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On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.

Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why they are bearish on them:

ASX Ltd (ASX: ASX)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating but lifted their price target on this stock exchange operator’s shares to $74.00. While the broker sees a few small reasons to be positive and has increased its valuation accordingly, it isn’t enough for a change of rating. Morgan Stanley continues to believe that the company’s shares are expensive at the current level. The ASX share price is trading at $80.70 on Thursday afternoon.

Commonwealth Bank of Australia (ASX: CBA)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $92.00 price target on this banking giant’s shares. The note reveals that the broker believes the proposed sale of a 10% stake in Bank of Hangzhou could support another ~A$2bn share buyback. However, while this would be a positive, it isn’t in a rush to change its rating. It continues to believe CBA’s shares are overvalued. The CBA share price is fetching $106.95 today.

Vicinity Centres (ASX: VCX)

Analysts at Morgan Stanley have also retained their underweight rating and $1.82 price target on this shopping centre operator’s shares. This follows a review of the real estate sector ahead of interest rate rises. Outside this, the broker remains bearish on Vicinity partly on valuation ground and also on concerns over the retail side of the real estate sector. The Vicinity Centres share price is trading at $1.85 on Thursday.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 bank shares underperforming on Thursday?
• Why did the CBA share price just close at a new 2022 high?
• NAB, ANZ and CBA shares in focus as top broker tips extra $5b share buyback
• Leading brokers name 3 ASX shares to sell today
• Broker names 2 quality ASX dividend shares to buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Rio Tinto Limited (ASX: RIO) share price has been marching upwards in recent times.

At the time of writing, shares in the world’s second largest miner are up 2.22% to $116.20.

This means that Rio Tinto shares have now gained 8.69% over the past week.

What’s driving Rio Tinto shares higher?

There are a few factors as to why the Rio Tinto share price is trading in positive territory since last Thursday.

Firstly, the accent of iron ore prices is providing a strong support base for the company’s margins thus far in FY22. Regarded as a key commodity in Rio Tinto’s portfolio, this is particularly important given a majority of its revenues come from the steelmaking ingredient.

In the financial year ending 31 December 2021, iron ore accounted for 62% of the total group sales revenue.

In addition, the S&P/ASX 200 Resources Index (ASX: XJR) has also pushed ahead, gaining almost 8% since last week. The sector represents 48 of the largest companies in the S&P/ASX 200 Index (ASX: XJO) that are members in the energy, metals and mining industry.

A positive shift in investor sentiment toward the index has propelled Rio Tinto shares forward.

Lastly, analysts at Macquarie updated their outlook on Rio Tinto shares last Monday. The broker raised the 12-month price target by 8% to $140 apiece.

It appears that the broker believes that Rio Tinto shares are currently undervalued, with the latest assessment representing around a 20% upside.

Rio Tinto share price summary

Adding to today’s gain, the Rio Tinto share price has surged 16% in 2022.

However, when looking across the past year, the mining outfit’s shares are up 6%.

After reaching an all-time high of $137.33 in August 2021, investors heavily sold off the company’s shares.

Rio Tinto hit a 52-week low of $87.28 in November before quickly rebounding higher.

The company has a price-to-earnings (P/E) ratio of 14.82 and commands a market capitalisation of roughly $41.14 billion.

The post The Rio Tinto (ASX:RIO) share price is up 9% in a week. Here’s why appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• How does Australia’s ban on alumina exports to Russia impact Rio Tinto (ASX:RIO)?
• Is it too late to jump on surging ASX 200 mining shares in 2022?
• ‘Highly improbable’: Why Rio Tinto (ASX:RIO) shares are in focus again
• Are 2021’s monster dividends from ASX 200 mining shares sustainable in 2022?

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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The Crown Resorts Ltd (ASX: CWN) share price is in the green today despite the Perth Casino Royal Commission finding the company unfit to run Western Australia’s only casino.

But the commission is giving Crown two years to clean up its act, which is likely why the share price is not falling off a cliff today.

At the time of writing, the Crown share price is trading 0.64% higher at $12.55.

The Perth Casino Royal Commission report, released today, concluded that Crown entities were not suitable “to be concerned in or associated with the organisation and conduct of gaming operations of a licensed casino”.

Further, the report said that Crown should not continue to hold the gaming licence for Perth Casino.

It contains a number of recommendations for remediation, which will be independently supervised.

Crown released a statement in response today saying it would review the report and “work cooperatively and constructively” with the Western Australian Government in relation to its findings and recommendations.

Crown found ‘facilitating money laundering’

According to the report, Crown’s failures at Perth Casino include:

• facilitating money laundering through the Riverbank accounts
• failing to have an effective anti-money laundering program
• permitting junkets with links to criminals to operate at Perth Casino
• failing to minimise casino gambling-related harm in many ways.

The report contains 59 recommendations for Crown to address to get its house in order at Perth Casino.

The report acknowledged that Crown has already undertaken some steps following similar inquiries in New South Wales and Victoria.

Those inquiries also found Crown unsuitable to hold a casino licence in each state.

What did Crown management say?

Crown managing director and CEO Steve McCann said:

Significant progress has been made with Crown’s transformation program, the implementation of company-wide reforms, and establishing the highest standards of governance. This includes investment in people, systems,
processes, culture and a sharp focus on responsible gaming and the prevention of financial crime.

Crown remains committed to continuous improvement across all facets of the business and is prioritising the delivery of safe and responsible gaming across all of our resorts, including Crown Perth.

Crown share price snapshot

The Crown share price began its spectacular decline in May 2021 during the Crown Melbourne inquiry.

Crown shares cratered by 33% over June and July 2021 to a new 52-week low of $8.47. The shares have gradually recovered to a level similar to where they were before all this drama started.

Last month, Crown accepted an $8.9 billion takeover offer from US private equity behemoth Blackstone Group.

The post Why is the Crown (ASX:CWN) share price winning today? appeared first on The Motley Fool Australia.

More reading

• Why my 2 biggest ASX shares are about to disappear: fund manager
• Here’s why all eyes will be on the size of Crown’s (ASX:CWN) potential AUSTRAC fine
• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• Crown (ASX:CWN) share price falls on AUSTRAC court proceedings news

Motley Fool contributor Bronwyn Allen 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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The APA Group (ASX: APA) has arguably long been regarded as one of the S&P/ASX 200 Index (ASX: XJO)’s ‘slow and steady’ companies. APA owns the largest network of gas pipelines in the country. As such, investors have been attracted to the rent-like dividends that would be expected of an infrastructure company like APA. Thus, APA is often described as a ‘bond proxy’ share on the ASX, in line with other shares like Transurban Group (ASX: TCL).

But looking at the APA share price, we see something interesting. Back in April 2015, this was a company asking roughly $9.30 a share. Today, APA shares are going for $10.22 at the time of writing. That equates to a $1 return over the past seven years, which works out to be worth just under a 10% gain.

Now, capital gains like that might not seem too impressive for many investors. After all, the ASX 200 has returned more than 25% over a similar period.

So say an investor bought $10,000 worth of APA shares back in April 2015 at a share price of $9.30. That would have netted said investor 1,075 shares, with some change left over. Today, those 1,075 shares would be worth $10,986.50. Solid, but nothing to set the world on fire, one could say.

How much have dividends added to the APA share price’s returns?

As we touched on before, many investors like to buy APA shares for the steady dividends. On current pricing, APA is offering a solid dividend yield of 4.3%. So has the dividend that investors have enjoyed from this company over the past seven years or so made up for APA’s rather dull share price performance?

Well, let’s dig in.

Since April 2015, APA has paid out a total of $3.235 in dividends per share. Notably, APA has raised its dividend every single year over this period. That means our investor would have received a total of $3,477.63 in dividend income as well. Add that to our principal and capital return and we get a total of $14,464.13. That works out to be a total return of 44.64%.

That’s looking a whole lot more productive and gets us to an annual compounded average growth rate of 5.41%. APA’s dividends usually come either partially franked at around 30%, or unfranked, so we can’t add too much to those returns with franking thrown in.

That return might not impress many investors looking for maximum growth. But for investors seeking only strong, reliable income, APA’s returns might be more than adequate.

At the current APA share price, this ASX 200 share has a market capitalisation of $11.93 billion.

The post The APA (ASX:APA) share price is up $1 in 7 years. Have the dividends been worth it? appeared first on The Motley Fool Australia.

More reading

• Are analyst upgrades on the way for APA (ASX:APA) shares?
• Here’s why the APA (ASX:APA) share price could be a top dividend share

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 owns and has recommended APA Group. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.1% to 7,387.8 points.

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

Aurelia Metals Ltd (ASX: AMI)

The Aurelia Metals share price is down 8% to 48.3 cents. Investors have been selling this gold miner’s shares after it revealed that it has identified lower grades of mineralisation in part of the Dargues Gold Mine compared to its existing life of mine plan. As a result, it expects to report a non-cash impairment charge in the range of A$60 million to A$80 million (post tax) against the Dargues assets.

Janus Henderson Group (ASX: JHG)

The Janus Henderson share price is down almost 4% to $45.82. This follows news that the fund manager has appointed its new Chief Executive Officer. According to the release, Janus Henderson has appointed Ali Dibadj to the role, effective no later than 27 June. He will take over from Dick Weil, who is stepping down on 31 March. Chief Financial Officer, Roger Thompson, will cover as interim CEO until Mr Dibadj joins.

ResMed Inc. (ASX: RMD)

The ResMed share price is down 4% to $32.09. This follows a sharp pullback in the company’s NYSE listed shares overnight. The sleep treatment specialist’s US listed shares tumbled 8.5% during overnight trade before rebounding 4% in after hours trade. This was driven by concerns over supply issues.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down almost 6% to $1.55. Investors have been selling Zip and other tech shares on Thursday following a poor night of trade on the tech-focused Nasdaq index. This has led to the S&P ASX All Technology index losing 1% of its value on Thursday afternoon.

The post Why Aurelia Metals, Janus Henderson, ResMed, and Zip shares are dropping appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Brickworks impresses, Uniti confirms takeover approach
• Janus Henderson (ASX:JHG) share price falls following new CEO appointment
• Why is the Zip share price getting smashed so much more than other BNPL stocks in 2022?
• Leading the pack! ASX tech shares storm higher on Wednesday
• ASX 200 (ASX:XJO) midday update: Block and Zip jump, Fisher & Paykel Healthcare sinks

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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WAM Capital Limited (ASX: WAM) is one of the largest listed investment companies (LICs) on the ASX. But does it have a 10% dividend yield at the latest WAM Capital share price?

According to the ASX, WAM Capital has a market capitalisation of more than $2 billion. There are not many LICs that are bigger, though two examples are Argo Investments Limited (ASX: ARG) and Australian Foundation Investment Co Ltd (ASX: AFI).

How big is the WAM Capital dividend yield?

The LIC has been paying an annualised dividend of 15.5 cents per share since 2018.

At the current WAM Capital share price, that dividend translates into a dividend yield of 7%. When franking credits are added, the grossed-up dividend yield becomes 10%.

However, the LIC notes that the company’s ability to continue paying fully franked dividends is dependent on generating additional profit reserves and franking credits. At the end of the period, the company’s profit reserve was 19.7 cents per share, before the payment of the declared fully franked FY22 interim dividend of 7.75 cents per share.

How is the portfolio performance going?

In the six months to 31 December 2021, the LIC generated an investment portfolio return of 4.8%. This quoted return is before expenses, fees, taxes, and capital management initiatives.

Over the half-year, the All Ordinaries Total Accumulation Index (ASX: XAOA) returned 4.6%. So, there was an outperformance in gross return terms by WAM Capital’s portfolio of 0.2%.

In the decade to 31 December 2021, WAM Capital’s portfolio average gross return of 14.8% per annum was 3.8% better per year than its benchmark.

However, there has been a lot of volatility since December 2021. WAM Capital’s net tangible assets (NTA) before tax have declined from $1.88 on 31 December 2021 to $1.71 on 28 February 2022.

What are some of the ASX shares that WAM Capital owns?

The portfolio’s investment performance can impact the WAM Capital share price and dividend funding (being the profit reserve).

The LIC is looking for the most compelling undervalued growth opportunities in the Australian market for its portfolio.

In the February 2022 update, it revealed a number of its top holdings.

There were some ‘reopening trade’ ASX shares in there, including Ardent Leisure Group Ltd (ASX: ALG), Accent Group Ltd (ASX: AX1), Corporate Travel Management Ltd (ASX: CTD), Event Hospitality and Entertainment Ltd (ASX: EVT), and Idp Education Ltd (ASX: IEL).

WAM Capital also had these businesses among its top 20 holdings: Brickworks Limited (ASX: BKW), Carsales.com Ltd (ASX: CAR), GUD Holdings Limited (ASX: GUD), IPH Ltd (ASX: IPH), and PEXA Group Ltd (ASX: PXA).

The post Does the WAM Capital (ASX:WAM) share price really offer a 10% dividend yield? appeared first on The Motley Fool Australia.

More reading

• These 2 compelling ASX shares are a buy: fund manager
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended IPH Ltd. The Motley Fool Australia owns and has recommended Brickworks. The Motley Fool Australia has recommended Accent Group, Corporate Travel Management Limited, IPH Ltd, and 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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Its a good day to be a shareholder in these ASX mining shares. They’ve each surpassed their previous 52-week highs and, in many cases, reached their highest point ever.

But, perhaps, mining shares might be a bit broad as each of these 5 stocks deal in a common commodity – lithium.

They were also all involved in S&P Dow Jones Indices’ March quarterly review.

Let’s take a look at the ASX lithium explorers and developers reaching long-forgotten heights on Thursday.

The ASX mining shares hitting new 52-week highs

ANZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price is surging 8.25% at the time of writing.

However, earlier today the lithium explorer’s stock boomed to a new 52-week high – and all-time high – of $1.14, representing a 10.6% gain.

Interestingly, there’s been no news released by the company for nearly 3 weeks.

Though, it was admitted to the S&P/ASX 200 Index (ASX: XJO) prior to the ASX opening on Monday. That could have helped spur its gains this week.

As could the rising price of lithium.

According to reporting by OilPrice.com, battery-grade lithium carbonate was trading for an average of US$76,700 per tonne in mid-March – 95% higher than it was at the start of 2022.

Additionally, prices are expected to remain high as demand continues.

All this has likely helped send the lithium explorer’s stock to its new 52-week high.

Lake Resources N.L. (ASX: LKE)

Another ASX lithium explorer is hitting new all-time highs today. The Lake Resources share price reached $1.87 today, representing a 3.8% gain.

There’s been no news from the company lately. But, once again, lithium prices could be to blame for the stock’s gains.

Additionally, the company was welcomed to both the All Ordinaries Index (ASX: XAO) and the ASX 300 earlier this week.

Impressively, the Lake Resources share price has gained a whopping 87.5% since this time last month.

Core Lithium Ltd (ASX: CXO)

Surprise, surprise: Another lithium explorer has made its way onto this list.

The Core Lithium share price hit a new 52-week high – and all-time high – of $1.29 on Thursday, representing a 4% increase.

By now, I’m sure readers will be sensing a pattern as, once again, there’s been no word from the company.

However, it was added to the S&P/ASX 300 Index (ASX: XKO) prior to Monday’s open.

Sayona Mining Ltd (ASX: SYA)

Another lithium stock, another 52-week high.

Lithium developer, Sayona Mining saw its share price hit its highest point since 2009 when it peaked at 24 cents today – a 14.2% gain.

The Sayona Mining share price took off earlier this month on news of its Québec lithium resource.  

Like Lake Resources, Sayona Mining was also welcomed to both the All Ords and the ASX 300 earlier this week.

Firefinch Ltd (ASX: FFX)

Finally, Firefinch – ASX-listed gold and lithium developer – surpassed its previous 52-week high on Thursday.

At its intraday high, the Firefinch share price was trading at 93 cents, a 4.4% increase on its previous closing price.

In a double whammy, the company’s stock might be being boosted by both the gold price – gold futures are currently up 0.24% according to CNBC ­– and the lithium price.

The company was also admitted to the All Ords and the ASX 300 on Monday.

The post 5 ASX mining shares smashing 52-week highs today appeared first on The Motley Fool Australia.

More reading

• Why Brickworks, JB Hi-Fi, Mesoblast, and Sayona shares are charging higher
• The AVZ Minerals (ASX:AVZ) share price has boomed a whopping 36% in a week. What’s the deal?
• Could the Firefinch (ASX:FFX) share price have 130% upside? Broker weighs in
• Why is the Sayona (ASX:SYA) share price rocketing 19% higher?
• Here are the 3 most heavily traded ASX 200 shares this Wednesday

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up slightly to 7,382.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Brickworks Limited (ASX: BKW)

The Brickworks share price is up almost 5% to $22.81. Investors have been buying this building products company’s shares following the release of its half year results. Brickworks reported a 24% increase in revenue to $535 million and a 254% jump in underlying earnings before interest and tax (EBIT) to $450 million. This was driven by investment earnings of $73 million and a $349 million increase in the value of its share in the joint venture property trust with Goodman Group (ASX: GMG).

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is up almost 4% to $52.57. This follows the release of a sales update from the retail giant. That update revealed that business has been booming so far during the second half. JB Hi-Fi revealed that for the period 1 January to 23 March 2022, it continued to see heightened customer demand and strong sales growth. This led to JB Hi-Fi Australia reporting total sales of 11.3% quarter to date.

Mesoblast limited (ASX: MSB)

The Mesoblast share price is up over 4% to $1.15. Investors have been buying this biotech company’s shares after it announced a key appointment. Mesoblast has appointed Philip R. Krause, M.D. to its board of directors. For the past decade, Dr. Krause has been the Deputy Director, Office of Vaccines Research and Review at the US Food and Drug Administration’s Center for Biologics Evaluation and Research.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price has continued its impressive run and is up a further 7% to 22.5 cents. Investors have been scrambling to buy this lithium explorer’s shares this month following a positive mineral resource update and its inclusion in the All Ordinaries and ASX 300 indices.

The post Why Brickworks, JB Hi-Fi, Mesoblast, and Sayona shares are charging higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Brickworks impresses, Uniti confirms takeover approach
• Here’s why the Mesoblast (ASX:MSB) share price is climbing today
• JB Hi-Fi (ASX:JBH) share price charges higher on strong Q3 sales growth
• Soul Pattinson (ASX:SOL) share price on watch after 281% surge in net profit
• Brickworks (ASX:BKW) share price on watch amid 269% first half profit jump

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks. The Motley Fool Australia owns and has recommended Brickworks. 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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A fund manager has named the CSL Ltd (ASX: CSL) share price within an ASX hall of fame.

CSL shares are currently swapping hands at $266.05, a 0.55% fall. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.11% today.

So why has this biotechnology giant received this accolade?

Why is CSL an ASX hall of famer?

QVG Capital has listed multiple shares in a list of ‘ASX Hall of Famers’ and CSL is one of them. Shares that made the cut are seen as some of the greatest ASX-listed companies of all time.

REA Group Limited (ASX: REA), Objective Corporation Limited (ASX: OCL), Aristocrat Leisure Limited (ASX: ALL), Reece Ltd (ASX: REH), Cochlear Limited (ASX: COH), Domino’s Pizza Enterprises Ltd (ASX: DMP), ARB Corporation Limited (ASX: ARB), Resmed CDI (ASX: RMD), and JB Hi-Fi Limited (ASX: JBH) are also named.

Commenting on this hall of fame listing on Livewire, QVG portfolio manager Chris Prunty said:

All these companies have been at least 20-baggers with CSL and REA returning over 100x to patient shareholders.

What’s clear from the data is that high returns on capital and compounding revenue growth for many years in the teens is the ‘secret’ to gaining access to this elite cohort.

The team at QVG listed three common characteristics of the shares that made the list. High returns on capital combined with revenue growth, margins that demonstrate pricing power or unit economics that crush the competition, and strong balance sheets.

CSL reported revenue growth of 4% in its latest half-yearly results and a net profit after tax of $1.76 billion. The EBIT margin, a measure of the profitability of the company taking into account interest and taxes, was 41.1%. The company is predicting a net profit after tax of between $2.15 billion and $2.25 billion in FY22. The company declared an interim dividend of $1.46 per share, up 8%. The CSL share price jumped more than 8% on the back of these results.

Citi has recently maintained a buy rating and placed a $335 price target on CSL shares.

CSL has been operating for more than a century and listed on the ASX in 1994.

CSL share price snapshot

The CSL share price has shed nearly 9% so far this year, while it is down 0.1% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained 9% in the past 12 months.

CSL has a market capitalisation of about $128 billion based on its current share price.

The post Do CSL shares deserve a spot in the ASX ‘hall of fame’? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• The next ASX share ready to join the 20-bagger club: expert
• Which ASX 200 shares is AFIC (ASX:AFI) betting on to make money?
• The company outperformed when it last reported, so why has the CSL share price been languishing?
• 3 buy-rated blue chip ASX 200 shares according to experts

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL 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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The Uniti Group Ltd (ASX: UWL) board is said to be considering a proposal put forward by Macquarie Infrastructure and Real Assets Holdings Pty Limited (MIRA) and Public Sector Pension Investment (PSPI) board to buy the company.

Collectively, the pair have labelled themselves “Connect Consortium”. MIRA operates within Macquarie Asset Management’s Real Assets division, itself a segment of Australian investment bank Macquarie Group Ltd (ASX: MQG).

At this point in time, Uniti shares are frozen due to the media speculation on the deal and the sensitive nature of the announcement(s).

Before it went into the chiller yesterday, the Uniti share price was fetching $4.67 apiece, having climbed 18% in the five days leading to Wednesday.

Uniti considering Macquarie offer

Uniti confirmed that it had received the offer that proposes an all-cash $5 per share buyout of the company. It says the proposal is non-binding, incomplete and indicative, and that there’s no certainty a deal will result.

The plan Macquarie set out values Uniti at roughly $3.4 billion and represents a 7% premium to the company’s last quoted market capitalisation before entering the halt.

However, in these kinds of transactions, we need to also look at the company’s balance sheet, by subtracting cash and equivalents, and then adding in minority interest and total debt to calculate the company’s enterprise value (EV).

At the time of writing, Uniti has an EV of $3.39 billion according to Bloomberg data, hence the deal values Uniti at ‘fair price’. EV is the figure investment bankers use when analysing buyouts because it signifies what the company’s true market value is.

Not only that, but Uniti had already entered into exclusive discussions with HRL Morrison & Co. for $4.50 per share just last week.

That deal is also subject to intense scrutiny and has a number of milestones to get through in order to overtake Macquarie’s fresh offer.

As such, Macquarie’s offer is around 11% higher than Morrison & Co’s bid, according to Bloomerg data.

Regarding the deal, Uniti said:

The Connect Consortium Indicative Proposal is subject to a number of conditions, including satisfactory completion of due diligence, FIRB approval, no material adverse change in respect of Uniti, committed debt funding being in place, receipt of internal MAM Real Assets and PSP Investments final approvals, unanimous recommendation of the transaction from the Uniti Board, and entry into a mutually acceptable Scheme Implementation Agreement to be agreed between Uniti and the Connect Consortium.

The board notes that Uniti shareholders needn’t take any action at this stage and that it will regularly update the market on any progress.

Uniti share price snapshot

In the past 12 months, the Uniti share price has more than doubled and it has now climbed another 5% this year to date in line with the performance of the broad tech sector.

Over the past month, shares are soaring higher and are now up 45% in that time after an 18% gain in the previous week of trade.

The post Uniti (ASX:UWL) said to be ‘considering’ Macquarie cash bid of $5 per share appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 Macquarie Group Limited and Uniti Group 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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