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Chalice Mining Ltd (ASX: CHN) shares will be on watch in the coming weeks when the mineral exploration company spins off its Falcon Metals business.

What is Falcon Metals?

Falcon Metals will be a new gold focused company with exploration assets located in Victoria and Western Australia. The company notes that with a strong starting cash position, Falcon Metals will have a unique platform to make a tier one gold discovery in Victoria and Western Australia. Drilling activities are anticipated to commence at Pyramid Hill in January 2022.

Management also advised that it believes demerging the business will allow the Chalice team to focus on its world-class Julimar Ni-Cu-PGE Project and the new West Yilgarn Ni-Cu-PGE Province in Western Australia.

What will happen with your Chalice shares?

When the demerger occurs, it is quite likely that Chalice Mining shares will trade notably lower on the day to reflect the fact that Falcon Metals is no longer part of the business.

But don’t worry, because this should be offset with the Falcon Metals shares that shareholders will be distributed.

The company intends to issue Falcon Metals shares to eligible Chalice shareholders by way of a pro-rata in-specie distribution. This is on the basis of 1 Falcon share for approximately 3.0341 Chalice shares held on the in-specie record date of 13 December.

After which, if everything goes to plan, Chalice Mining shares and Falcon Metals shares will each be trading separately at the commencement of trade on 22 December.

Is Chalice Mining a buy?

One leading broker that is very positive on Chalice Mining shares is Macquarie Group Ltd (ASX: MQG).

Last week the broker retained its outperform rating and lifted its price target to $10.70. This implies potential upside of almost 15% for Chalice Mining’s shares over the next 12 months.

The post How will Chalice Mining (ASX:CHN) shares be impacted by the Falcon spin off? appeared first on The Motley Fool Australia.

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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. 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 Santos Ltd (ASX: STO) share price is climbing during Thursday morning trade. This comes after the company announced its decision to divest its interest in the Barossa project.

At the time of writing, the energy producer’s shares are up 0.3% to $6.75 apiece.

Santos offloads Barossa project

Investors are pushing Santos shares into positive territory despite the broader S&P/ASX 200 Index (ASX: XJO) shedding 0.1% today.

After yesterday’s market close, Santos advised it had entered into a sale and purchase agreement (SPA) with Jera Co.

Founded in 2015, Jera is a joint venture between the Tokyo Electric Power Company, and Chubu Electric Power. The company offers thermal power, business development, optimisation, engineering, operation, and maintenance services to its customer base in Japan.

Most notably, Jera has a 6.1% stake as an existing partner in Darwin LNG. Acquiring a foothold in the Barossa project is expected to complement the company. This is because of the development and processing of Barossa gas through Darwin LNG facilities.

Under the deal, Santos will sell a 12.5% interest in the Barossa project to Jera for approximately $300 million.

Completion of the sale is estimated to occur sometime within the first half of the 2022 calendar year.

Barossa is one of the lowest cost, new LNG supply projects in the world today. Acquiring a foothold in the project gives Santos and its partners a competitive advantage in a tightening global LNG market.

The Barossa project is on track for its first LNG production in the first half of 2025. The gas pipeline will run through the existing Bayu-Undan to the Darwin LNG pipeline.

Santos is also progressing the carbon capture and storage (CCS) opportunity at Bayu-Undan in the Timor Sea. Once developed, this could provide a CCS hub for projects in the region, including Barossa.

What did management say?

Santos managing director and CEO, Kevin Gallagher commented:

JERA is a long-standing partner and customer at Darwin LNG. We are delighted to have finalised our agreement with JERA consistent with the terms of the Letter of Intent that was agreed shortly after the announcement of the acquisition of ConocoPhillips’ interests in Barossa. I welcome JERA as a partner in the Barossa project and look forward to continuing to build on the important long-term relationship between our two companies.

Santos share price summary

Over the past 12 months, Santos shares have registered gains of almost 5%. However, when looking at year-to-date, its shares are around 7% higher.

Based on today’s price, Santos commands a market capitalisation of roughly $14.02 billion and has approximately 2.08 billion shares outstanding.

The post Santos (ASX:STO) share price edges higher amid Barossa project sale appeared first on The Motley Fool Australia.

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

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The EBOS Group Ltd (ASX: EBO) share price is on watch this morning as the company undertakes a capital raise ahead of a $1.1 billion acquisition.

The pharmaceutical wholesaler and distributor is set to purchase the Australian and New Zealand subsidiaries of LifeHealthcare, as well as 51% of the Asian subsidiary, Transmedic.

LifeHealthcare is one of the largest distributors of third party medical devices, consumables, capital equipment, and in-house manufactured allograft material in Australia, New Zealand, and South-East Asia.

The EBOS share price is frozen at $34.70 as it initiates what’s expected to be a $742 million capital raise.

Let’s take a closer look at what’s going on with EBOS on Thursday.

EBOS share price frozen amid acquisition announcement

EBOS believes acquiring LifeHealthcare will diversify and enhance its portfolio. It will also create an entry point for EBOS in the Asia Pacific region.

The remaining portion of Transmedic will be retained by its co-founders. They will continue to manage the business. EBOS states it has entered into arrangements to acquire the remaining 49% of the business “in the medium term”.

The purchase will cost the ASX giant $1.167 billion. The company expects the acquisition will bring in between $110 million and $114 million of earnings before interest, tax, depreciation, and amortisation (EBITDA) in 2023.

To fund the acquisition, EBOS is undertaking a non-underwritten retail offer to raise up to $100 million. It is also undertaking a $642 million placement.

The placement will see EBOS shares offered at a price of $32.75 (converted from New Zealand dollars at the current exchange rate). That represents a 5.5% discount on EBOS’s previous closing price.

The retail offer will be open to eligible shareholders. It will see the company’s stock offered for the placement price or the 5-day volume weighted average price, whichever is lower. The company may accept over-subscriptions.

EBOS will also put $540 million from new term loan debt facilities towards the purchase. EBOS will fund the remaining $23 million by issuing 700,000 new shares to LifeHealthcare management.

The acquisition is subject to several conditions, including regulatory approval. EBOS expects to complete the acquisition by the end of this financial year.

Over FY2021, LifeHealthcare brought in $326 million in pro forma revenue and $92 million in pro forma EBITDA.

EBOS trading update

The EBOS share price is also in focus due to a trading update provided by the company this morning.

Over the first 4 months of FY2022, the company’s net profit after tax grew by 14% on that of the prior corresponding period.

EBOS’s healthcare segment revenue increased by 10.4%, while its animal care segment revenue rose by 14.3%.

The EBOS group’s earnings before interest and tax also increased by 13.1% year-on-year.  

Looking to the future, the company expects that acquiring LifeHealthcare will deliver low double-digit percentage earnings per share (EPS) growth in 2022.

Additionally, EBOS expects its FY2022 dividend to represent between 60% and 80% of its net profit after tax.

The post EBOS (ASX:EBO) share price on watch amid cap raise and $1 billion acquisition 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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The Sydney Airport (ASX: SYD) share price is pushing higher on Thursday morning.

At the time of writing, the airport operator’s shares are up 3% to a 52-week high of $8.59.

Why is the Sydney Airport share price rising?

The Sydney Airport share price was given a boost this morning from the release of an announcement relating to its $32 billion takeover.

According to the release, the Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose the proposed acquisition of Sydney Airport by the Sydney Aviation Alliance.

In addition, the company notes that the European Commission has also approved the proposed acquisition under the EU Merger Regulation.

In light of this, the ACCC and European Union conditions contained in the Scheme Implementation Deed have now been satisfied.

What’s next?

While the above approvals are a positive, it’s not the end of the road. The implementation of the Scheme remains subject to a number of other conditions. This includes FIRB approval, the approval of Sydney Airport shareholders, and Court approval.

In respect to shareholders, the release reveals that they are expected to be given the opportunity to vote on the takeover in February. A Scheme booklet is expected to be issued to shareholders later this month.

Once again, the Sydney Airport Board recommends investors vote in favour of the $8.75 per share proposal.

It commented: “The Sydney Airport Board unanimously recommends that Sydney Airport Securityholders vote in favour of the Scheme at the Scheme meeting, in the absence of a Superior Proposal and subject to an independent expert concluding that the Scheme is in the best interests of Sydney Airport Securityholders (other than UniSuper). Subject to those same qualifications, each member of the Sydney Airport Board intends to vote, or cause to be voted, any Sydney Airport securities held or controlled by them in favour of the Scheme.”

The post Sydney Airport (ASX:SYD) share price lifts off after ACCC gives takeover green light appeared first on The Motley Fool Australia.

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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. 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.

Mainstream cryptocurrency exchange Coinbase Global (NASDAQ: COIN) is the largest and best-known marketplace. Over 73 million verified users and some 10,000 institutions use its platform for investing in and holding around 120 different cryptocurrencies.

The popular, easy-to-use interface has seen assets soar to $255 billion at the end of the third quarter, a seven-fold increase from the $36 billion it had one year ago. Despite the stellar gains, its stock hasn’t been quite a star performer, with shares down about 20% from their debut via a direct listing in April.

As a pick-and-shovel play on cryptocurrency, Coinbase has the potential to be a major winning investment, regardless of whether Bitcoin maintains its dominance or Solana or Cardano prove to be actual Ethereum killers.

However, it’s still a hardscrabble play that has yet to perform as well as expected, and for some very good reasons. Below, you can divide into the bear and bull case for whether this is the best time to buy this crypto marketplace for your portfolio.

The other side of the Coinbase

Rick Munarriz: There’s a lot to like about Coinbase as an investor — until you start to zoom in as a crypto trader. Coinbase is the mainstream name that even crypto outsiders know, and understandably so with $255 billion in assets on platform. Unfortunately, it’s more like crypto investing on training wheels. It’s a nest to chirp away in as a baby bird until you’re ready to fly. It’s the first person you date and ultimately leave when things start to get serious.

Crack open the hood, and you’ll see a platform with high trading fees, a history of iffy customer service when things go wrong, and limited options to generate passive income on your investments. You might think it’s great that you can earn 4.5% annually on your staked Ethereum, but that’s only if you lock it up until the world’s second-most-valuable digital currency completes its migration to proof of work. You can earn more than 4.5% on several smaller platforms without having to wait for an event with no actual date to regain access to your crypto. You would think that Coinbase would be the leader in yield on USD Coin (CRYPTO: USDC), the dollar-pegged stablecoin that it created. Nope. All you can earn is 0.15% a year, whereas you can earn yields topping 10% on other platforms.

Stock investors wooed by Coinbase and its high margins may want to take a closer look at the surprisingly low trailing earnings multiple. It’s padded with one-time gains and a perfect storm that is highly unlikely to be duplicated. Analysts see earnings roughly cut in half next year. The bottom line isn’t the only thing that is shrinking here. Monthly transacting users went from 8.8 million in the second quarter of this year to just 7.4 million in the third quarter. Trading volume in its latest report was lower than each of its two previous quarters. Cool nest. It’s time to flap those wings and fly. It’s not me. It’s you.      

Patience is still key to investing

Rich Duprey: Even in the crypto world, patience is an investor virtue. Even though Bitcoin has gone up 8 billion percent and Shiba Inu has rocketed 53 million percent higher just in 2021 alone, having a long-term outlook is justified when it comes to Coinbase despite it actually being down 38% from its high point. 

Volatility should be expected in the early days of crypto, let alone Coinbase, but such wild swings will impact its transaction revenue. As my colleague Rick notes, global trading volume for the third quarter was down 37% from the second quarter, leading to a 29% drop in Coinbase’s volume.

Even so, Coinbase was able to report having 7.4 million monthly transacting users helping it to generate $1.2 billion in revenue — the third straight quarter of over $1 billion generated. It reported $612 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), giving it amazing profit margins of 50%.

So it’s clear the business is solid and on a firm foundation, though I don’t disagree with Rick that Coinbase can do some things better. Much better, even. Still, revenue is forecast to surge to over $8 billion by 2024 when adjusted EBITDA is expected to hit $2.8 billion.

Coinbase has been focused on achieving critical mass, and now as the preeminent crypto marketplace, it has the resources to further innovate in the space. This is a crypto name that has the potential to double, triple, or even become a ten-bagger for investors, so long as they have the patience to ride it out. 

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

The post Coinbase stock: Bull vs. Bear appeared first on The Motley Fool Australia.

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Rich Duprey has no position in any of the stocks mentioned. Rick Munarriz owns shares of Bitcoin, Coinbase Global, Inc., and 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 Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is edging lower on Thursday after being hit with a $25 million penalty.

In early trade, the banking giant’s shares are down 0.1% to $27.63.

What’s happening?

This morning ANZ acknowledged that the Australian Securities and Investments Commission (ASIC) has commenced a civil penalty proceeding. This relates to benefits including fee waivers and discounts not being applied under the bank’s Breakfree package, as well as system errors impacting offset account calculations.

The release notes that the proceeding primarily relates to issues raised during an ANZ case study at the 2018 Royal Commission.

What is ASIC alleging?

ASIC is alleging contraventions of certain misleading or deceptive conduct provisions of the ASIC Act and breaches of the general obligations owed by financial services licensees.

These include not all applicable benefits being applied under the Breakfree package, including home loan, transaction account and credit card fee waivers, home loan interest rate discounts, and optional additional benefits such as discounts on insurance premiums.

In respect to system errors, it is alleged that they were affecting the calculation of offset benefits in certain circumstances, including where customers made payments into their offset accounts on weekends or non-business days.

ANZ advised that it has enhanced its systems and processes to address these issues and is also undertaking remediation programs. Furthermore, the majority of payments to customers impacted are complete, with remaining payments expected to be made in 2022 and remediation for the optional additional benefits being completed over 2022-2023.

ANZ agrees to $25 million penalty

The release also explains that ANZ and ASIC have filed a statement of agreed facts and admissions with the Court.

This has seen ANZ admit to the contraventions and apologise to its customers who have been impacted. It also acknowledges that its conduct fell short of expectations and has co-operated fully with ASIC during its investigation.

The banking giant does not intend to contest the proceeding and will join ASIC in submitting a proposed penalty of $25 million to the Court. Positively, this remediation and the proposed penalty are covered by existing provisions.

The post ANZ (ASX:ANZ) share price lower amid $25 million penalty appeared first on The Motley Fool Australia.

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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. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price has been a strong performer on Thursday morning.

At the time of writing, the lithium developer’s shares are up a sizeable 12% to $10.89.

Why is the Vulcan Energy share price surging higher?

Investors have been bidding the Vulcan Energy share price higher today following the release of a positive announcement after the market close on Wednesday.

According to the release, the company has signed a binding lithium hydroxide offtake agreement with the world’s largest automaker, Volkswagen Group.

The release reveals that from 2026, Volkswagen will purchase a minimum of 34,000 tonnes and a maximum of 42,000 tonnes of battery grade lithium hydroxide over a five-year term. Pricing will be based on market prices on a take-or-pay basis.

In addition, Volkswagen has agreed to a first right of refusal to invest in additional capacity in the Zero Carbon Lithium Project. Conditions precedent include the successful start of commercial operations and full product qualification.

Vulcan’s Managing Director, Dr Francis Wedin, commented: “Through this agreement, Vulcan Energy’s Zero Carbon Lithium business will become a key enabler of Volkswagen’s world-leading target to produce carbon neutral EVs, including all the raw materials in the battery supply chain. We look forward to working closely together with Volkswagen, the world’s largest automaker by revenue and the largest company in Germany, to build sustainable, local lithium supply for the German and European automotive sector.”

This sentiment was echoed at Volkswagen, with the CEO of Volkswagen Group Components, Thomas Schmall, commenting: “Volkswagen is implementing its battery strategy very consistently and at a high pace. The Volkswagen unified cell must be at the forefront of performance, costs and sustainability right from the start. With our new partners, we are taking the next step closer to this goal. Together, we will approach key parts of the battery value chain and develop cutting-edge technologies.”

The post Vulcan Energy (ASX:VUL) share price shoots 12% higher on Volkswagen deal appeared first on The Motley Fool Australia.

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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. 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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Brokers and analysts are always keeping an eye out for potential ASX share opportunities.

Share prices are changing every day and can change quite significantly over the weeks. So, potential ideas can open up pretty quickly.

There is a group of businesses that multiple brokers rate as buys, which may suggest there is an opportunity. Or perhaps all of those brokers are simultaneously wrong. Having said that, here are two ASX shares that are buy-rated by several analysts at the moment:

Elders Ltd (ASX: ELD)

Elders is a 180-year-old agribusiness which operates across several sectors including helping farmers with agricultural production, crop growth, financial planning, insurance, home loans and real estate.

It’s currently rated as a buy by at least three brokers including Citi which has a buy rating on the business with a price target of $13.75. The broker was pleased by the recent FY21 result, beating expectations, and notes the good outlook for FY22.

Elders reported in FY21 that sales revenue increased 22% to $2.55 billion, with underlying earnings before interest and tax (EBIT) rising 38% to $166.5 million and underlying profit after tax jumping 40% to $151.1 million. The total dividend per share for FY21 was increased by 91%.

The ASX share’s outlook was positive, with Elders saying that continued favourable seasonal conditions and high demand for agricultural commodities are expected to create “excellent” trading conditions in the first half of FY22.

Rural products’ outlook remains positive with the summer crop expected to drive strong demand in the first half of FY22, particularly for agricultural chemicals, fertiliser and seed. Global supply constraints are being actively managed through forward orders and diversifying the risk across suppliers, though higher costs are expected.

Cattle, sheep and farmland prices are expected to remain high. Elders could also make more acquisitions.

Goodman Group (ASX: GMG)

Goodman is a global industrial property business which is currently rated as a buy by at least four brokers, including Morgan Stanley which has a price target of $26.50 on the business.

The broker notes the ongoing positive environment for Goodman in the industrial property space, with an upgrade to profit expectations for FY22.

For the three months to September 2021, the ASX share said that the results of the deliberate positioning of its portfolio over the last decade to adapt to and leverage the changes in the digital economy are now being realised. The customer demand for high-quality properties close to consumers “has never been greater”.

That demand is resulting in rental growth, increased development activity, a stronger than expected performance from its partnerships and generally higher levels of profitability, leading to upgraded earnings guidance for FY22. It’s now expecting operating earnings per security (EPS) to grow by at least 15%.

It had $62 billion of total assets under management (AUM), with expectations of reaching around $70 billion by June 2022 thanks to valuation gains and significant rental growth. Across its partnerships, it saw 3.2% like for like net property income growth with a 98.4% occupancy rate.

The ASX’s share development work in progress has reached $12.7 billion with an annual production rate for the year expected to be approximately $6.8 billion. . These developments are driving “strong margins” and the yield on cost is currently 6.8%.

The post 2 market-leading ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders 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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With economic activity roaring in the post-COVID era and real estate prices running hot, it’s a great time to be in finance at the moment.

So it’s not a long bow to draw to suggest ASX shares in that industry have some optimism.

Sure, the big banks have hogged the limelight in recent months with their massive dividends and share buybacks.

But here are 3 smaller players that experts picked this week as a “buy”, which might have more room for growth:

These ASX shares are about to reverse their fortunes

Shares for Australian Finance Group Ltd (ASX: AFG) have disappointed this year, sinking more than 4%.

However, Marcus Today portfolio manager Thomas Wegner told TheBull that its business is actually expanding.

“This mortgage broking group lodged $24.1 billion in home loans in the first 3 months of financial year 2022 — a 33% increase on last year’s prior corresponding period.”

And as interest rates inevitably rise from the current historic low, it’ll only spur on AFG’s activities.

“We expect earnings growth in the near term to be supported by an underlying shift to higher-margin products,” he said.

“As interest rates start to rise, the role of a mortgage broker will become more important to borrowers.”

AFG shares dived 1.9% lower on Wednesday, to close at $2.58.

A classic ‘buy the dip’

The share price for Queensland business Suncorp Group Ltd (ASX: SUN) has taken a beating recently, losing 15% since mid-October.

Catapult Wealth portfolio manager Tim Haselum attributed the plunge to “an increase in natural disaster costs due to storms on the east coast”.

But that’s now provided a golden buying opportunity.

“Historically, Suncorp is at a point in the claims and premium increase cycle where investors can consider taking advantage of share price weakness,” he said.

“Offsetting higher costs are rising premiums and bond yields, which should lead to an increase in earnings in the absence of significantly more claims.”

JP Morgan agrees with Haselum, setting a price target of $13.30, as opposed to Wednesday’s closing price of $10.85.

2022 could be as great as 2021 for this ASX share

Pure insurance player QBE Insurance Group Ltd (ASX: QBE) has seen its shares rise more than 42% this year so far.

Fat Prophets chief executive Angus Geddes reckons it still has plenty of legs.

“This insurer has made substantial improvements to its business in recent years,” he said.

“Narrowing its focus has simplified the business and led to improving underwriting outcomes.”

The analysts at Morgans are in sync with Geddes, also rating the insurance giant as a “buy” with a price target of $13.70. That compares to the Wednesday closing price of $12.19.

Rising interest rates will benefit QBE, according to Geddes.

“The business should be a major beneficiary ahead of a steepening yield curve,” he said.

“The insurance pricing market has become more rational, and QBE’s premiums have firmed considerably, which should continue, in our view.”

The post 3 ASX finance shares to buy right now (hint: no big banks) appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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November was a great month for Treasury Wine Estates Ltd (ASX: TWE) and its share price.

While there was only one price-sensitive announcement from the company, it was more than enough to excite the market.

Over the course of November, the Treasury Wine share price gained 5.03% to finish at $12.10.

For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.92% over the same period.

Let’s take a look at what the winemaker and distributor announced last month.

What drove the Treasury Wine share price in November?

The first and only time the ASX heard price-sensitive news from Treasury Wine in November was when it announced its latest acquisition.

On 18 November, it told the market that it had agreed to purchase California’s Frank Family Vineyards for $432 million.

The Treasury Wine share price soared 2.5% on the back of the news. It also gained 4% the following day.

The acquisition is the latest step in the company’s strategy to grow its Treasury Americas portfolio.

In October it stated that its American growth strategy involves divesting non-priority brands and seeking out bolt-on acquisitions.

Speaking of divesting, the company’s new purchase was partly funded by the proceeds of its divestment strategy. It also forked out cash and debt to cover the $432 million bill.

The company’s purchase of Frank Family Vineyards will also see it offering consumers luxury chardonnay – covering a gap in Treasury Americas’ portfolio.

And in non-price sensitive news, the company’s renowned Penfolds brand launched a non-fungible token (NFT) last month.

Through a partnership with BlockBar, Penfolds offered a single NFT representing a barrel of vintage 2021 for US$130,000 in late November.

The NFT will be able to be traded until October 2022, when it will be ‘bottled’ alongside the physical barrel of wine it represents.

The bottles will be traded on BlockBar from then and can be redeemed for a bottle of Penfolds vintage from October 2023.

As of the end of November, the Treasury Wine share price was 26.4% higher than it was at the start of 2021.

The post How did the Treasury Wine (ASX:TWE) share price perform in November? appeared first on The Motley Fool Australia.

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

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