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The CSL Limited (ASX: CSL) share price is underperforming on Monday.

In morning trade, the biotherapeutics company’s shares are down ever so slightly to $297.89.

This is despite the company responding to mergers and acquisition (M&A) speculation this morning.

CSL confirms acquisition talks

This morning CSL finally confirmed that it is interested in acquiring Swiss based biotechnology company Vifor Pharma.

Earlier this month, there was speculation that CSL was in talks with Vifor Pharma. However, in response to this speculation, management downplayed any impending deals being made.

It commented: “CSL regularly assesses strategic opportunities that can improve its business, improve the health of people around the world and provide value to shareholders. There is no certainty that any transaction will result from CSL’s consideration of such opportunities and, if any transaction does result, when such a transaction would occur.”

This rhetoric changed slightly on Monday after further reports claimed that a deal was close to being made.

On this occasion, management responded by saying: “CSL confirms that it is in discussions with Vifor Pharma Ltd regarding a potential transaction, however at this time there remains no certainty that any transaction will result and, if a transaction does result, when such a transaction would occur.”

What would a deal look like?

Previous speculation suggested that CSL would look to acquire the iron deficiency, nephrology and cardio-renal therapies developer for $10 billion.

Were a deal to be made for Vifor Pharma, the reports indicated that CSL would look to part-fund the deal with a capital raising. A figure of $3 billion to $4 billion has been touted with the balance being covered by its existing cash reserves, debt facilities, or shares.

Though, whether an agreement is ultimately signed, only time will tell. But things certainly appear to be progressing, so all eyes will be on the CSL share price in the lead up to 2022.

The post CSL (ASX:CSL) share price lower after responding to M&A speculation appeared first on The Motley Fool Australia.

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• Is the CSL (ASX:CSL) share price great value? Here’s what analysts think
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• Rationale behind CSL (ASX:CSL) acquisition play not ‘immediately apparent’: Macquarie
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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 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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What a year it’s been for the Australian healthcare sector in 2021. It has had to come to grips with the lasting effects of COVID-19, and has experienced a wave of disruption and innovation at levels not seen before. Meanwhile, surging case numbers have plagued the operations of many ASX-listed healthcare names.

Consequently gains and losses have been non-discriminatory in ASX healthcare shares in 2021. Several large-cap names have struggled, whilst the small-cap division of the sector has shown equally choppy results.

However, as the effects of the pandemic begin to diminish and vaccination numbers continue creeping upwards, overall sentiment on ASX healthcare shares appears to be shifting towards a more bullish tone.

Expert commentary on the sector shows many investors are banking on a year of continued innovation and recovery after a sluggish year on the charts.

Moreover, the S&P/ASX 200 Health Care Index (ASX: XHJ) bounced off its 3-month low in October and has climbed back towards its single-year highs at 45,535 points at last check, indicating strength in the broad sector at the back end of 2021.

With that in mind, let’s take a walk through what the experts are saying on the outlook for these ASX healthcare shares in 2022.

Ramsay Healthcare Limited (ASX: RHC)

The Ramsay Healthcare share price closed last week at $69.50 after climbing 5% in the previous 5 trading days.

Shares in the global healthcare company have been on a wavy run these past 3 months, closing as high as $73.42 and trading as low as $65.94 in that time.

JP Morgan notes that Ramsay’s operating results “remain at the mercy of COVID-19,” especially due to its United Kingdom and European divisions taking an unexpected hit as new cases are again on the rise there.

Yet, despite these headwinds, JP Morgan has not lost any confidence in Ramsay’s expected recovery, “given the success of vaccine roll-outs and reports of growing waiting lists.”

It values Ramsay a buy at $74 a share and reckons the market will recognise these tailwinds and bid up the share price to that level.

JP Morgan says that Ramsay’s ability to “continue to generate solid earnings growth is augmented by the group’s ongoing brownfield development program, potential for acquisitions and cost savings. We believe the company has a good track record of delivering growth through the aforementioned measures.”

Jarden also has Ramsay at a buy alongside Macquarie, with price targets of $84.30 and $75.50, respectively, whereas Morgans and Credit Suisse each have it as a hold.

Consensus has it valued at $71.36 a share, implying an upside potential of around 3% at the time of writing, and 8 analysts have it as a buy from a list provided by Bloomberg Intelligence.

Sonic Healthcare Limited (ASX: SHL)

Shares in Sonic Healthcare have outperformed the broad healthcare indices and bounced off a 3-month low of $38.58 in late November. Sonic shares are trading at $44.07 in early morning trade today.

As such, the diagnostics and imaging giant was a serious performer out of the healthcare majors over the last month and is now up 37% since 1 January.

Given its performance, backed by fundamental tailwinds in COVID-19 testing, Morgans is constructive on the shares into 2022, viewing a “growth potential in COVID serology testing”.

Morgans also likes Sonic’s balance sheet at “gearing of 21.6x” giving a spacious $1.3 billion of headroom, that effectively “opens the door to acquisitions, contracts and JVs”.

JP Morgan is equally as constructive on the shares but is yet to bump its rating from neutral at this stage. It recently raised its estimates on Sonic to “allow for the sharp lift in COVID PCR testing in Australia” but notes recent weakness in the Aussie dollar as a potential headwind for the company moving into 2022.

“The [AUD] has risen sharply against most major currencies, suggesting there may be downside risk to our forecasts if current rates prevail for the remainder of FY22” it says.

Morgans rates Sonic as an add with a $47.05 price target whereas JP Morgan remains neutral and values the company at $45 per share.

In the list of analysts provided by Bloomberg Intelligence, the sentiment ratio is evenly split among buy to sell at approximately 50% each, with an average price target of $43.93.

Sigma Healthcare Ltd (ASX: SIG)

Shares in health and pharmaceutical distributor Sigma Healthcare have been walking on a downward slope over the past 3 months.

In that time its share price has plunged from a high of 64.5 cents to its current level of 43 cents per share.

Adding more fuel to Sigma’s recent demise is the company’s recent guidance downgrade, coming just 2 months after it had reaffirmed its FY22 outlook. Sigma warned investors it is now experiencing issues with the introduction of its enterprise planning resource system due to COVID-19 restrictions.

Sigma expects one-off costs of $25 million to $30 million from the setbacks, and now forecasts earnings before interest, tax, depreciation and amortisation (EBITDA) to come in 10% lower than previous guidance – in stark contrast to its previously forecasted 5% growth in September.

The downward revision in guidance saw Citi slash its earnings per share (EPS) estimates on the company for FY22 by 24%. Furthermore, Citi cut its FY23 and FY24 EPS estimates by 15% and 2% respectively.

As such, Citi subsequently cut its price target on the company by 17% to just 50 cents, in line with Morgan Stanley who has Sigma as equal weight at 48 cents per share.

Cochlear Limited (ASX: COH)

Shares in Aussie healthcare success story Cochlear have been sliding these past few months. Cochlear shares are falling hard from previous highs of $256 back in August. In morning trade they are continuing their decline, down to $213.67.

Given that Cochlear’s hearing implant surgeries are considered elective, they have been put on the backburner as a non-priority as the Australian hospital system comes to grips with COVID-19.

Goldman Sachs recognises these challenges and reckons Cochlear is a sell in a recent note to clients. The firm says that Cochlear’s surgery volumes remain at risk due to their elective nature. It notes that Australian surgery numbers are yet to recover to pre-pandemic volumes.

It also reckons Cochlear’s share price is trading at lofty valuations that make it unattractive right now. Subsequently, it values the company at $197 a share.

Citi is also neutral on the shares but holds a slightly more positive tone in a recent analysis of Cochlear. Analysts at the firm note a recent implant recall of Cochlear’s rival, Demant. They say this highlights the high barriers to entry and competitive moat Cochlear has formed on its operations from years of research and development.

Not only that, Cochlear maintained an approximate 65% market share of the implant sector throughout the pandemic, even with the threat of several “well-funded” competitors, Citi says.

It rates the shares neutral with a $220 price target. Whereas Jarden and Macquarie have Cochlear as a buy with valuations of $258 and $256 respectively.

Cochlear shares have gained 7% in the past 12 months and are up 13% this year to date.

The post What’s the outlook for ASX healthcare shares in 2022? appeared first on The Motley Fool Australia.

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• Why this top broker says the Cochlear (ASX:COH) share price is heading lower
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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Ramsay Health Care Limited, and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

What happened?

This weekend, most major cryptocurrencies, including Dogecoin (CRYPTO: DOGE), saw yet another bout of selling early Saturday morning. However, Dogecoin appears to be finding its feet today, trading flat over the past 24 hours, and down only marginally over the past week. The 24-hour trading range works out to a 2.5% span between the top and bottom prices. That would be a thrilling day for many investments but it’s a rare helping of calm for the volatile Dogecoin.

Some experts are now pointing to Dogecoin’s valuation as being more attractive at these levels, for two reasons. First, Dogecoin’s market capitalisation relative to its total mining revenue (a key metric used to determine how overvalued or undervalued for proof-of-work cryptocurrencies) is actually lower than Ethereum (CRYPTO: ETH) right now. Additionally, Dogecoin’s total aggregate mining revenue just surpassed the crucial $1 billion mark, suggesting that perhaps at least some of the hype around this token was warranted.

So what?

Dogecoin’s popularity as a meme token has brought about miner interest in this network. One may suggest that the use cases that have risen this year with Dogecoin are a direct result of the meme status of this token. In other words, if Elon Musk never tweeted about Dogecoin, perhaps this token would simply just be the “joke” its founders intended.

Instead, we are now left with a proof-of-stake token that has seen $1.08 billion of miner revenue (in the form of fees, newly minted coins, and all other revenue sources) generated all-time, to Dec. 9. Compared to Ethereum, this is a drop in the bucket — the Ethereum network is reportedly 18 times larger than Dogecoin’s at the time of writing. That said, Ethereum is valued at roughly 21-times the market capitalisation, on this relative basis.

Now what?

There are not many fundamental metrics cryptocurrency investors can point to for perspective on just how overvalued or undervalued a specific token is. However, looking at total miner revenue relative to the market capitalisation of a given token is an interesting way to assess how cryptocurrencies are valued. Ethereum, being the gold standard it is, certainly provides a good benchmark.

Looking at Dogecoin’s parabolic rise this year, one interesting thing to note is that this rise took place as mining activity picked up. Perhaps that’s simply correlation rather than causation. One might argue that the rising interest in this token, as a result of its meme status among crypto enthusiasts, led to increased mining activity as more investors looked to benefit from Dogecoin’s rise. Fair enough.

However, the fact that Dogecoin appears to be stabilising right now could be due, at least in part, to investors recognising that the underlying fundamentals with this token can be justified. Like any investment, it’s important to consider the fundamentals driving a given company (or blockchain network, for that matter). 

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

The post 2 fundamental reasons Dogecoin is stabilising today appeared first on The Motley Fool Australia.

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Chris MacDonald owns Ethereum. The Motley Fool Australia’s parent company Motley Food Holdings Inc. owns and recommends Ethereum. The Motley Fool has a disclosure policy.

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

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The Firefinch Ltd (ASX: FFX) share price has come out of a trading halt to plummet during late morning trade. This comes after the lithium developer announced an update on its recent capital raise.

At the time of writing, Firefinch shares are down 9.93% to 68 cents apiece.

Firefinch completes placement

One catalyst for today’s fall in the Firefinch share price could be investor concerns over an impending share dilution.

According to its release, Firefinch announced it has received firm commitments for its institutional placement to raise $100 million before costs. The company highlighted that it had strong support from both domestic and offshore institutional investors.

The offer will see approximately 149.3 million new ordinary shares issued at a price of 67 cents each. This represents an 11.3% discount to the last closing price of 75.5 cents on 8 December (before going into a trading halt).

Firefinch will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval.

The proceeds will be used to fast track the production growth at the Morila Gold Mine in Mali (West Africa). The company is targeting more than 100,000 ounces of gold in 2022 and over 200,000 ounces of gold in 2024.

In addition, Firefinch will also allocate funds to facilitate the proposed demerger of the Goulamina Lithium Project into a separate ASX-listed company. Recently, Goulamina was confirmed as being amongst the world’s largest lithium development projects, highlighting the inherent value of the world-class asset.

Settlement of the new shares is expected to occur on 17 December, with allotment scheduled on the next business day.

What did management say?

Firefinch managing director, Michael Anderson commented:

This is a fantastic outcome for Firefinch which speaks to the outstanding growth potential inherent in our assets, the exceptional work our team has done ramping up gold production to date and in completing an updated DFS for Goulamina. We now have a huge opportunity in front of us.

2021 has been a transformational year for the Company and this funding provides a tremendous foundation for further growth as we enter 2022. We are now well funded to deliver on our strategic vision of becoming a West African gold producer of scale, as well as developing the next major lithium project to enter production, ahead of our Goulamina demerger in the new year.

About the Firefinch share price

Despite today’s heavy losses, the Firefinch share price has accelerated 420% in the past 12 months. When looking at year-to-date, the company’s shares are hovering upwards of around 320%.

Based on valuation grounds, Firefinch presides a market capitalisation of around $775.30 million with approximately 1.03 billion shares on hand.

The post Here’s why the Firefinch (ASX:FFX) share price is plunging 10% today appeared first on The Motley Fool Australia.

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

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The BHP Group Ltd (ASX: BHP) share price is gaining this morning despite a breakdown in its discussions with Wyloo Metals regarding the takeover of Noront Resources.

Previously, the company announced it was in talks with Wyloo Metals to find a mutually beneficial agreement to acquire the Canada-based resource developer. However, that idea has now been scrapped.

At the time of writing, the BHP share price is $40.77, 2.03% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in the green today, with a 0.55% gain.

Let’s take a closer look at today’s non-price sensitive news from the iron ore giant.

BHP share price gains despite break down of talks

There’s been another bump in the road for BHP Lonsdale Investments’ ­– a wholly-owned subsidiary of BHP Group – 82 cent (C$0.75 cent) per share takeover offer for Noront Resources.

The company stated it entered “constructive discussions” with Wyloo Metals regarding the takeover offer but the pair were unable to reach an agreement.

BHP upped its takeover offer in October after Wyloo Metals posed its own takeover bid.

Despite the breakdown of discussions between the two, Noront Resources continues to recommend its shareholders support BHP’s all-cash offer.

More than half of the nickel, copper, platinum, and palladium developer’s shareholders must tender their shares to the offer for it to go ahead.

Fortunately, the news hasn’t dampened the BHP share price. And it’s not alone in its gains today.

Plenty of other ASX 200 resource shares are also having a great start to the week.

Right now, the S&P/ASX 200 Resources Index (ASX: XJR) is 1.31% higher.

Among the sector’s strong performers is Fortescue Metals Group Limited (ASX: FMG). Its share price is currently sporting a 1.1% increase.

Fortescue Metals chair Andrew Forrest also chairs his family’s private investment group, Tattarang, which owns Wyloo Metals. Tattarang also owns a 36% holding in Fortescue Metals.

Right now, the BHP share price is 4.27% lower than it was at the start of 2021. However, it has gained 8% since this time last month.

The post What’s boosting the BHP (ASX:BHP) share price 2% higher 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 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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AVZ Minerals Ltd (ASX: AVZ) and Ioneer Ltd (ASX: INR) shares have started the week in a very positive fashion.

In early trade on Monday, both lithium explorer’s shares are outperforming the market materially.

For example, the AVZ share price is up over 14% to 67.5 cents and the Ioneer share price is up 10.5% to 74.5 cents.

Why are the AVZ share price and the Ioneer share price storming higher?

The catalyst for the rise in the AVZ and Ioneer share prices this morning appears to have been news out of MV Index Solutions and VanEck.

According to reports, MV Index Solutions has decided to add both AVZ Minerals and Ioneer to the Global Rare Earth/​Strategic Metals Index at the December quarterly rebalance.

This will see the two companies join the likes of Allkem Ltd (ASX: AKE), Jiangxi Ganfeng Lithium, Livent Corp, and Pilbara Minerals Ltd (ASX: PLS) in the index when it rebalances on 17 December.

Why is this good news?

This has the potential to be good news for both shares for a number of reasons.

One is the exposure that it will receive from being included in a popular index which covers one of the hottest industries in investment markets right now.

The other is that fund managers are often restricted from buying shares unless they are included in certain indices. It is conceivable that some fund manager may only be allowed to gain exposure to lithium or battery materials if the shares they want to buy are included in this index.

And finally, any ETFs that are tracking the index will need to buy shares to reflect these changes. This adds to buying pressure and can be a boost to share prices.

The VanEck Rare Earth/Strategic Metals ETF, for example seeks to replicate the price and yield performance of the MVIS Global Rare Earth/Strategic Metals Index. It currently has net assets of $1.1 billion invested in the fund.

The post Why are AVZ (ASX:AVZ) and Ioneer (ASX:INR) shares rocketing higher? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Allkem 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Though stock values have dropped at several points in the course of the past year, for the most part, 2021 has been a solid one for investors. And while many experts believe that the next stock market crash is right around the corner, I’m not convinced.

Right now, stock values are high, and that alone could lead to a near-term correction. But that doesn’t mean the market will completely tank.

Furthermore, stock values have been high for a long time now, and while the market definitely took a tumble in March of 2020 when the pandemic first hit home, it recovered fairly quickly. And so if stocks do crash in the coming year, that downturn may be short-lived.

Either way, though, I think it’s important to always be prepared for a stock market crash — even if you’re not lying awake at night worried that the next one will strike any day. And so now that we’ve reached the tail end of 2021, here are some moves I’m making in the coming weeks to gear up for potential turbulence in 2022 — whether it comes to be or not.

1. Sneaking a little cash into my emergency fund

It’s always a good idea to have a solid emergency fund — enough money in the bank to cover three to six months of essential living expenses. That way, if you lose your job or encounter some unplanned bills, you’ll have cash reserves to tap without having to land in debt or liquidate stocks to scrounge up the money.

Right now, my emergency fund is looking pretty robust, especially since I have about a year’s worth of essential expenses on hand in cash. I tend to overfund my emergency savings because doing so gives me peace of mind as both a self-employed worker and an investor. And so between now and the end of the year, any money I don’t spend on holiday expenses or other obligations will probably go into my savings so it’s there for me just in case.

2. Making sure my portfolio is nice and balanced

A diverse investment mix could be just the thing to help you get through a stock market downturn. And so I’m planning to do a thorough review of my investments and make sure they’re as balanced as I’d like them to be.

When you own stocks (or other investments), their value can rise and fall, leading to a scenario where you may be more heavily invested in a single market segment than you’d like to be. So my plan is to make sure that hasn’t happened in my portfolio, and if I need to do some rebalancing, I’ll make that move before stock values tumble.

3. Putting together a wish list of new stocks to acquire

It’s easy to look at a stock market crash as a negative thing. But I like to view these events as buying opportunities.

In the past year, I’ve struggled to add to my portfolio because stock values have been so high. If they fall in the coming year, I want to be ready to pounce. And so I’m researching some companies now so that I’ll be prepared to buy shares should the opportunity present itself.

Hope for the best but be prepared

Sitting around worrying about a stock market crash is not a good use of your mental energy. At the same time, though, you never know when things might take a turn for the worse. This especially holds true during these uncertain times as a pandemic continues to rage.

By boosting my cash reserves, balancing my portfolio, and strategizing about future investments, I’m empowering myself to deal with whatever stock market turbulence comes to be in the coming year. And doing the same may really work to your benefit. 

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

The post The 3 things I’m doing to prepare for a 2022 stock market crash appeared first on The Motley Fool Australia.

More reading

• Why are AVZ (ASX:AVZ) and Ioneer (ASX:INR) shares rocketing higher?
• Why cryptocurrencies like Bitcoin, Polygon, and Terra fell today
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• Could the CBA share price peak have been and gone?
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

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

What happened 

The weekend started softly for cryptocurrencies. Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) lost ground as the broader crypto market sold off. Bitcoin lost about $2,000 of value per token in a late Friday crash, hitting a low around $46,786, although as of 3:40 p.m. ET on Saturday, the cryptocurrency is up 0.5% over the last 24 hours to $48,632. Ethereum experienced a similar drop late Friday, hitting a low of $3,835 at one point and is currently up 0.3% in the last day to $4,031. 

DogeCoin (CRYPTO: DOGE) was down as much as 7.3% over 24 hours and is currently down 0.9%. Polygon (CRYPTO: MATIC) fell as much as 11.8% and Terra’s Luna (CRYPTO: LUNA) coin fell as much as 16.2%, although they’re now down 5.6% and 8.8% respectively. 

So what 

A crash early in the weekend happened a week ago as well, indicating that bigger traders may pull their liquidity, or trades, early in the weekend. But the market recovered quickly and is now flat for most of the largest cryptocurrencies. 

The theme of this week was weakness in cryptocurrencies overall as industry leaders were led before Congress. Some lawmakers expressed concern about the industry’s lack of regulation and crypto executives argued that rules are needed, but not those written for an older financial world. At the end of the day, there were few fireworks and no comprehensive regulation seems to be imminent.

Terra Lab’s Luna coin is the one cryptocurrency that has cratered significantly in the last few hours. Less than a week ago, the coin reached the top ten market caps among cryptocurrencies. But Terra Labs and co-founder and CEO Do Kwon have come under investigation in the U.S. and he doesn’t seem to be interested in complying with regulators. In an interview with CoinDesk.tv, Kwon said U.S. regulation was “not that interesting” and may not be as helpful as other executives in setting rules for the country. Despite the big move, there isn’t any significant news out about this cryptocurrency today. 

Now what 

It seems that wild moves on very little news have become standard for cryptocurrencies lately. On a macro level, I think investors need to consider what the market’s pullback from growth stocks meant, and how the Federal Reserve’s reduction in asset purchases and potentially higher interest rates mean for the market. Thus far, cryptocurrencies have traded along with growth stocks, indicating they aren’t an effective hedge for inflation or a down market. 

We should also keep in mind that many cryptocurrencies have gone up rapidly and even a big pullback may be natural. For example, Luna coin is still up 21% over the past month and Polygon is up 22%. On the flip side, Bitcoin, Ethereum, and DogeCoin are down 25%, 12%, and 35% respectively over the past month. 

Volatility continues and long-term investors will want to watch the health of each cryptocurrency’s ecosystem, not just its value from day to day, for an indication of health. 

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

The post Why cryptocurrencies like Bitcoin, Polygon, and Terra fell today appeared first on The Motley Fool Australia.

More reading

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Travis Hoium owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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.

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

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The Ramsay Health Care Limited (ASX: RHC) share price is on the move on Monday morning.

In early trade, the private healthcare operator’s shares are down

Why is the Ramsay share price falling?

The Ramsay share price is falling today despite announcing a major acquisition in the UK.

According to the release, Ramsay has signed an agreement to acquire UK based mental healthcare provider Elysium Healthcare for an enterprise value of 775 million pounds (A$1.4 billion) from private equity firm BC Partners.

The release notes that Elysium is a leading independent operator of long-term medium and low secure hospitals and complex care homes for individuals with mental health conditions and has a strong partnership with the UK’s National Health Service (NHS).

It offers Ramsay a platform for growth through full utilisation of recently developed capacity, and delivering on its development pipeline, combined with potential bolt-on opportunities.

Positively, management expects the transaction to deliver mid-single digit earnings per share accretion in FY 2023. It also highlights that the deal meets Ramsay’s internal return targets, including a post-tax cash ROIC target of greater than 10% by year five and a post-tax IRR of greater than 10%.

The transaction price of A$1.4 billion represents an FY 2021 EV/EBITDA multiple of 13.5x. Judging by the performance of the Ramsay share price today, some investors may believe Ramsay is paying too much. The deal will be funded from Ramsay’s existing debt facilities.

Ramsay’s Managing Director and CEO, Craig McNally, commented: “This is an excellent opportunity for Ramsay to expand its successful health care services platform in the UK through the acquisition of an established and reputable business, with a strong track record of growth and a robust pipeline of development opportunities. It will build on the Ramsay brand and quality reputation with doctors, payors and patients in the UK market.”

Huge market opportunity

Mr McNally notes that the acquisition opens up the company to a huge market opportunity in the UK.

He explained: “The acquisition of Elysium will expand Ramsay’s patient pathways into the £15bn UK mental health market at a time when more and more people are seeking support for mental health, learning difficulties and neurological issues. It will provide opportunities to leverage the expertise of Elysium and Ramsay’s existing mental health facilities and clinicians in Australia, France, and Sweden to drive improved patient outcomes across our mental health activities globally.”

“Ramsay and Elysium share a strong commitment to clinical excellence, high-quality care and patient safety, with a matching focus on caring for our people and partners. We look forward to strengthening our important partnership with the NHS,” the CEO concluded.

The post Ramsay (ASX:RHC) share price lower after announcing $1.4bn Elysium acquisition appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• Macquarie warns the next ASX market downturn could come as soon as February
• Top brokers name 3 ASX shares to sell next week

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 recommended Ramsay Health Care 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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Commonwealth Bank of Australia (ASX: CBA) hit all-time closing highs last month.

On 8 November, the CBA share price finished the day at $110.13. That put shares up a whopping 32% for the 2021 calendar year at the time.

And this is no small-cap stock we’re talking about here.

Even at the current CBA share price of $98.03, down 11% from the record high, the big 4 bank has a market cap north of $167 billion.

With CommBank also paying a healthy trailing dividend yield of 3.6%, ASX 200 investors are wondering whether the bank can march to fresh record highs in the year ahead.

What’s the outlook for CommBank relative to its peers?

For the answer to where the CBA share price could be heading next, we turn to Joseph Koh, a portfolio manager in Schroders’ Australian equities team.

According to Koh (quoted by the Australian Financial Review), both the CBA share price and the Westpac Banking Corp (ASX: WBC) share price dragged down the banks last month:

Almost all the bank underperformance in November can be attributed to two banks: CBA and Westpac, both of which are more skewed towards residential mortgages relative to peers. Extremely low interest rates have buoyed mortgage growth, but have also led to sharp price competition, particularly hurting CBA’s and Westpac’s profitability.

Koh notes that interest rates are beginning to move higher. But he gives his tick of approval to Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) due to the makeup of their loan books:

While short-term interest rates have begun to rise, margin pressure will still be evident in 2022 and credit growth will likely slow.

We continue to prefer ANZ and NAB, which have more exposure to business and institutional loans, and believe that CBA in particular is still overvalued. For the price of CBA, you could essentially buy both ANZ and NAB, which combined would have a loan book 50 per cent bigger than CBA’s.

CBA share price snapshot

Despite tumbling 11% from its record high, the CBA share price remains up 19% in 2021. That handily outpaces the 12% year-to-date gain posted by the S&P/ASX 200 Index (ASX: XJO).

The post Could the CBA share price peak have been and gone? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 dividend shares to buy
• Is the Westpac (ASX:WBC) share price a buy after falling 19% in 6 weeks?
• Top brokers name 3 ASX shares to buy next week
• Top brokers name 3 ASX shares to sell next week
• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update

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

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