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The Boral Limited (ASX: BLD) share price is in the spotlight as expectations for a big capital return just increased.

The building products supplier announced this morning that it signed an agreement to sell its US fly ash business for US$755 million (~$1 billion).

The Boral share price jumped 1% to $6.23 in early trade when the S&P/ASX 200 Index (Index:^AXJO) fell 0.2%.

Boral share price has a silver lining

The sale to Eco Material Technologies marks a bittersweet conclusion of Boral’s US expansion story. It’s foray into the US market under previous chief executive Mike King has cost shareholders dearly.

Boral paid $3.5 billion for the Headwaters fly ash and building products group over five years ago.

But there’s no point crying over spilt fly ash. King is long gone, the Boral share price is recovering and shareholders should be able to look forward to enjoying a capital return in the new year, funded from the proceeds of asset sales.

Asset sales and surplus cash

Boral’s current chief executive Zlatko Todorcevski has been busy divesting underperforming assets to revive the Boral share price. This included the sale of its 50% holding in USG Boral for US$1.02 billion, Meridian Brick for US$250 million and US building products business for US$2.15 billion – just to name a few.

The sale of the fly ash business is the last piece in the jigsaw that will see Boral focus on its Australian construction materials business. The deal is scheduled to be completed in the current financial year.

The expectation here is that Boral will have surplus cash from its downsizing exercise to fund a $1bn plus capital return – if not more.

Boral’s capital return in focus for 2022

“For Boral’s shareholders, we have now unlocked substantial value through a successful divestment program,” said Todorcevski.

“Together with the sale of the North American Building Products business and our stake in Meridian Brick, following finalisation of this transaction, we will have divested the North American businesses for more than A$4 billion (US$3 billion).”

Boral’s board is yet to determine how to return the surplus cash to shareholders. This could come as another on-market share buy-back, like the one it just completed in July this year following the sale of USG Boral.

But you can’t rule out other capital management initiatives either, such as a special dividend.

Boral share price ending year on a high note

Despite the many issues, at least the Boral share price is heading in the right direction. Its shares have gained around 25% over the past year, thanks in no small part to the takeover offer by Seven Group Holdings Ltd (ASX: SVW).

In contrast, the Seven Group share price has fallen early 7% when the ASX 200 is largely flat over the same period.

The post Boral (ASX:BLD) share price jumps on $1bn fly ash sale appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Friday

Motley Fool contributor Brendon Lau owns shares of Seven Group Holdings 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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The Bapcor Ltd (ASX: BAP) share price has continued its slide on Monday morning.

At the time of writing, the auto parts retailer’s shares are down 5% to a new 52-week low of $6.42.

This means the Bapcor share price is now down 22% since this time last month.

Why is the Bapcor share price falling today?

The Bapcor share price has come under pressure in recent weeks following the announcement of the retirement of its long serving Managing Director and CEO, Darryl Abotomey, early next year.

In response to the news, the team at Ord Minnett downgraded the company’s shares. It was concerned by the change of leadership at a challenging time. It noted that Bapcor is currently overhauling its supply chain and consolidating its distribution centres. The company is also undertaking a significant store expansion, including in the Asia market.

However, things have gone from bad to worse on Monday, with Mr Abotomey now being removed from his position with immediate effect following a fallout with the Bapcor Board.

The Bapcor Board explained: “Since the joint announcement of Mr Abotomey’s retirement, there has been a marked deterioration in the relationship between the Board and the CEO, such that Mr Abotomey’s position as MD and CEO has become untenable. By unanimous decision, the Non-Executive Directors and Chair of the Board have taken steps to exercise Bapcor’s rights and has now elected to bring forward his retirement end date as CEO and director of Bapcor immediately. Mr Abotomey will be paid in lieu of his notice period.”

“The leadership transition presents an opportunity for Bapcor to install a more contemporary leadership and management approach to drive the Company’s growth while also ensuring consistent with changing stakeholders’ expectations, an appropriate governance and oversight framework remains in place,” it added.

What now?

Originally, it was planned that Bapcor’s Non-Executive Director, Mark Powell, would step in as Acting CEO at the end of February.

However, as Mr Powell is not immediately available, the Board has appointed Noel Meehan, Bapcor’s CFO as Acting CEO, effective immediately. Bapcor Chair Margie Haseltine will step into the role of Executive Chair.

Margie Haseltine commented: “Noel brings significant financial, strategic operational strengths to the role. He has an in-depth understanding of the business, our future growth strategy and the needs of our team members, and we are grateful that he can step in and ensure a seamless transition. We are disappointed to be taking this step earlier than anticipated and thank Mr Abotomey again for his contribution to the growth of Bapcor since its IPO.”

One positive for the Bapcor share price is that the company has reaffirmed its outlook commentary provided at the 2021 AGM.

The post Bapcor (ASX:BAP) share price sinks again after CEO is kicked out appeared first on The Motley Fool Australia.

More reading

• These ASX dividend shares have been tipped as buys this month
• 2 cheap ASX shares rated as buys by brokers in December 2021
• Are these 2 top ASX shares beaten-up buys?
• Here are the top 10 ASX shares today
• 2 buy-rated ASX dividend shares

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 Bapcor. 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest rose to 13.4%. Short sellers have been increasing their positions amid the emergence of the Omicron variant of COVID-19.
• Kogan.com Ltd (ASX: KGN) has seen its short interest remain flat at 12%. This ecommerce company was dealt another blow today when Dow Jones Indices announced that it would be kicked out of the ASX 200 index.
• Redbubble Ltd (ASX: RBL) has short interest of 11.2%, which is up again week on week. As with Kogan, Redbubble has just been kicked out of the ASX 200 index at the next quarterly rebalance. This follows a period of underperformance by both its operations and its shares.
• Webjet Limited (ASX: WEB) has short interest of 9.2%, which is up week on week. The emergence of the Omicron variant of COVID-19 has investors concerned that the travel market recovery could be derailed.
• Cooper Energy Ltd (ASX: COE) has 9.1% of its shares held short, which is up week on week again. The company’s troubled Orbost gas processing plant continues to weigh on sentiment.
• Mesoblast limited (ASX: MSB) has short interest of 9%, which is up week on week. Concerns over this biotech company’s precarious financial position appear to be behind this high level of short interest.
• Zip Co Ltd (ASX: Z1P) has seen its short interest fall to 9%. Short sellers have been targeting Zip this year amid intense competition in the BNPL market and rising costs.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.2% of its shares held short, which is down notably week on week. Short sellers have been going after this defence and space company due partly to concerns over its cash flows.
• Omni Bridgeway Ltd (ASX: OBL) has entered the top ten with short interest of 7.8%. It is unclear why short sellers are targeting the class action funder. Particularly given how last week Goldman Sachs reiterated its conviction buy rating and lifted its price target to $5.35.
• BHP Group Ltd (ASX: BHP) is back in the top ten with short interest of 7.5%. Short sellers may believe that weaker iron ore prices will lead to the mining giant falling short of expectations.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• Why these 3 ASX tech shares could plunge this week
• Evergrande admits it may not meet debt repayments
• 5 things to watch on the ASX 200 on Monday
• Where is the Christmas cheer for the Zip (ASX:Z1P) share price?
• These were the best performing ASX 200 shares last 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. owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited and Kogan.com ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. 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 week was a rather volatile one in crypto land. For meme token Shiba Inu (CRYPTO: SHIB), this was certainly the case. 

Most cryptocurrencies saw significant volatility last weekend, as a direct result of the plunge we saw across most risk assets Friday with the omicron variant being deemed a “variant of concern” by the World Health Organization. Since crypto markets are open 24/7, 365, Shiba Inu saw significant declines over the weekend, which were quickly erased on Monday.

Most risk assets traded higher in Monday’s session, as the market rethought Friday’s sell-off. For Shiba Inu, speculation about a new metaverse game helped send this token well above Friday’s close.

Tuesday’s price action for this meme token was much of the same, with Shiba Inu rising more than 30% at its daily highs. A listing on Kraken, a prominent crypto exchange, was the key catalyst that got investors excited.

For the remainder of the week, Shiba Inu did see some price pressure. However, SHIB tokens ended the week flat on a week over week basis, as of 9am ET.

So what

More speculative risk assets such as Shiba Inu have begun to move in tighter correlation to riskier equities in recent months. For investors in meme tokens, the direction of capital flows into risk assets appears to matter more than before.

Right now, investors appear to remain somewhat uncertain as to the direction of momentum in the meme token space. Other high-momentum sectors of the crypto market (namely, metaverse-related cryptocurrencies) are generating a tremendous amount of attention. The degree to which these other momentum-driven segments of the crypto market temporarily or permanently divert investors’ funds out of dog-inspired tokens remains to be seen.

Now what

Undoubtedly, Shiba Inu is among the riskiest assets in the market today. For most assets, this risk is reflected in volatility. Indeed,  Shiba Inu has been one heck of a volatile token this week, despite ending the week right around where the token started.

Long-term conservative investors with a focus on capital preservation and great risk-adjusted returns may want to stay as far away from this token as possible. This volatility is likely to persist.

That said, those who have held onto Shiba Inu through previous bouts of volatility really look like the intelligent investors today. That’s the market we’re in right now. 

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

The post Shiba Inu soars and crashes, but it’s still holding up this week appeared first on The Motley Fool Australia.

More reading

• Here’s how these 4 top traded cryptos performed in November
• 2 reasons why Shiba Inu surged more than 30% today
• Why Shiba Inu Coin sank 7% today

Chris MacDonald 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.

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

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Today was once expected to be a massive day for Afterpay Ltd (ASX: APT) and its share price, with its investors set to go to the polls on Square Inc‘s (NYSE: SQ) takeover.

However, the monumental vote was delayed – and now we know when it will take place.

At the time of writing, the Afterpay share price is $98.24.

Could this impact the Afterpay share price today?

Investors likely pencilled today’s date into their calendar early last month in the expectation Afterpay’s impending takeover will be going to a shareholder vote this morning.

However, the vote was pushed back last week. Luckily, the company has today revealed when it will go ahead.

Shareholders, dismiss your last mark and circle next Tuesday – 14 December. You’ll have your say at 9am AEDT that morning.

All eyes will be on the Afterpay share price then as the takeover faces yet another potential hurdle.

Afterpay is still planning for the takeover to go ahead in the first quarter of 2022.

The hold-up is due to Spain’s central bank. The takeover is conditional on its approval, which it hasn’t yet given.

Afterpay previously stated it expects the Bank of Spain will give its approval the in middle of next month. Though, its deadline isn’t until mid-February.

The bank regulates a European subsidiary of Afterpay, Pagantis. The subsidiary provides Afterpay with the regulatory licencing needed to operate in European Union member states.

The acquisition passed a major milestone last month when shareholders of Square – soon to be renamed ‘Block’ – approved the issuance of new stock for the all-scrip transaction.

Today, the company will go ahead with its plan to open the scheduled Scheme Meeting, wherein shareholders were originally expected to vote, before immediately adjourning it.

While the happening is not price sensitive, it could inspire interest in Afterpay, thereby affecting its share price.

The meeting will be opened and adjourned by the company’s chair, Elana Rubin.

The post Afterpay (ASX:APT) share price in focus as Square vote confirmed for next week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Here’s why Square is down today while the stock market is rising
• Why Afterpay, Liontown, Northern Star, and Xero shares are falling
• Is Square stock a buy?
• ASX 200 (ASX:XJO) midday update: Afterpay sinks, Woolworths bids for API

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. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 Newcrest Mining Ltd (ASX: NCM) share price has been on a rollercoaster ride throughout 2021. The company holds the title of owning and operating some of Australia’s largest gold and copper mines. While the company appears solid on paper, its shares have not been immune to weakened market conditions.

In fact, Newcrest shares fell 5% in the past week alone, nearing their 52-week low of $21.85. This means that the Newcrest share price is now down 18% year to date, after shedding last Friday with a 1.04% loss.

At last trade the price of Newcrest shares stood at $22.77.

Why are Newcrest shares falling?

A common theme with gold mining companies, the Newcrest share price has been dumped amid the deterioration of gold prices.

Traditionally, investors flock to the yellow metal as a safe-haven asset when there is uncertainty in the market. However, with the world moving past COVID-19, amid renewed investor confidence across the US dollar and inflation numbers, gold has lost its value.

In the past few months, the price of gold soared above the US$1,800 barrier, but has since fallen by the wayside. Currently, one ounce of gold is fetching US$1,783.35.

Compare this to the start of the year when the precious metal had been swapping hands for US$1,898.66, today’s price is down by 6.07%.

What’s ahead?

Last month, Newcrest agreed to purchase the remaining stake in Canadian metals and mining company Pretium Resources.

Valued at $2.8 billion, Newcrest is hoping to acquire all of the outstanding common shares it does not already own. The Australian gold miner holds a 4.8% stake in its Canadian counterpart.

The Pretium board of directors has unanimously recommended shareholders vote in favour of the transaction. However, for the deal to go through, it must receive approval from 66.66% of the total votes cast by shareholders.

In addition, the takeover will need to be authorised by the Supreme Court of British Columbia, along with competition clearances and Investment Canada Act approval.

Should all go according to plan, the acquisition is expected to close in the first quarter of CY2022.

Pretium is the owner of the Brucejack gold mine, which is one of the highest-grade operating gold mines in the world. It has an estimated gold production of 311koz (thousand ounces) per annum at an all-in sustaining cost of $743 per ounce. The projected mine life is around 13 years.

Furthermore, Brucejack is conveniently located about 140 kilometres from Newcrest’s majority-owned and operated Red Chris mine. This allows the company to strengthen its position in the region by having close access to critical infrastructure.

Newcrest share price summary

Since August 2020, the Newcrest share price has been on a gradual decline, posting a loss of almost 40%. Year to date, however, its shares are down around 18% for investors.

As Australia’s largest gold miner, Newcrest commands a market capitalisation of $18.62 billion, with approximately 817.96 million shares outstanding.

The post The Newcrest (ASX:NCM) share price is having a year to forget. What’s next? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Top ASX shares to buy in December 2021
• These are the ASX 200 shares that fundies have been snapping up
• 5 things to watch on the ASX 200 on Monday

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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All eyes will be on a trio of technology shares this morning after Friday night brought some bad news for them.

After market close last week Dow Jones revealed the ASX shares that would be added and removed from the S&P/ASX 200 Index (ASX: XJO) later this month.

Among them are 3 prominent former darlings:

• Kogan.com Ltd (ASX: KGN)
• Nearmap Ltd (ASX: NEA)
• Redbubble Ltd (ASX: RBL)

All of these tech players will be removed from the ASX 200 before trading begins on Monday 20 December.

So what if they’re no longer in the ASX 200?

So what’s the big deal? What difference does it make if they’re not in the ASX 200?

Removal can potentially have an impact on share price because passive funds that follow the index will be forced to sell their holdings.

This will increase supply, which could affect the going price.

All 3 companies have had something of a fall from grace in recent times.

Online retailer Kogan has seen its shares lose more than 60% this year. Marketplace platform Redbubble has lost almost 44%, while aerial imagery provider Nearmap has plunged 34%.

Shareholders will have to brace themselves for potential further falls this week in response to the ASX 200 removal announcement, then again on 20 December as passive funds sell them off.

These tech shares have still returned plenty

Despite their recent troubles, all 3 tech shares teach a stark lesson on the benefits of long-term investing. 

Each has provided investors with handsome returns over a 5-year interval. Kogan has risen a spectacular 431%, Redbubble has almost quadrupled (293%) and Nearmap has returned 129%.

There are plenty of analysts who consider all 3 to be bargain buys at the moment, with further discounting that could come this week.

Credit Suisse has a price target of $13.88 on Kogan, which closed Friday at $7.71.

Redbubble is rated as buy by Morgan Stanley, which has set a price target of $6.50 as a contrast to the current $3.34.

And according to CMC Markets, 3 of 6 analysts are rating Nearmap stock as a “strong buy”.

The post Why these 3 ASX tech shares could plunge this week appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Is there hope for the Kogan (ASX:KGN) share price in the lead up to Christmas?
• Here are 6 of the worst performing ASX shares of November
• 2 top ASX shares for December
• Why Australian Ethical, GUD, Nuix, and Redbubble shares are tumbling lower

Motley Fool contributor Tony Yoo owns shares of Nearmap Ltd. and REDBUBBLE FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Nearmap Ltd. 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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It has been a difficult couple of years for the Treasury Wine Estates Ltd (ASX: TWE) share price.

Although the wine company’s shares are up a sizeable 23% in 2021, they are still down approximately 37% over the last two years.

Why is the Treasury Wine share price down 37% in two years?

The main cause of the Treasury Wine share price weakness over the last couple of years has been its exit from the China market.

The wine giant was effectively kicked out of the country after Chinese regulators slapped significant duties on its wine following anti-dumping and countervailing investigations into certain Australian wine exports into China.

China’s Ministry of Commerce put a duty rate of 175.6% on Treasury Wine’s Australian country of origin wine in containers of two litres or less imported into China. This essentially means that a $50 bottle of wine would now cost $137.80 after duties have been applied.

Given how lucrative the China market was for the company, this created a huge gap in its earnings and unsurprisingly put significant pressure on the Treasury Wine share price.

Can Treasury Wine fill the gap?

According to a note out of Citi, its analysts are optimistic on the company’s future and note that management is working hard to fill the Chinese earnings gap.

This includes the Penfolds brand shifting its strategy from Australian wine to French wine. This will see the company aim to launch its tariff-less French collection in China mid to late 2022.

Citi also commented: “The focus of this week’s virtual analyst event with Penfolds Managing Director and Group CFO was on the i) China strategy following the import tariffs, ii) Penfolds ability to restrict wine supply from Asian markets ending up in China through grey channels, and iii) distribution opportunities outside China.”

“We rate Treasury a Buy. We see the recent Frank Family Vineyards acquisition providing i) a significant distribution growth opportunity, ii) the scope to expand its market share in the luxury wine category, and iii) assistance to reach its 25% margin target, combined with the recent share price decline,” it added.

Citi has a $13.80 target on the Treasury Wine share price. This implies potential upside of 17% for investors.

The post Can Treasury Wine (ASX:TWE) ever fill the hole left by Chinese exports? appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Morgans rates these ASX 200 shares as buys
• Cheers! Morgans tips Treasury Wine (ASX:TWE) share price to rise 19%
• Top brokers name 3 ASX shares to buy next week
• The Treasury Wine (ASX:TWE) share price popped some corks to a new 5-week high today

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 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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Evergrande is making headlines again after telling the market that it may run out of money.

The Chinese real estate developer has said that there was no guarantee that it would have enough funds to meet debt repayments.

In an announcement on the Hong Kong Stock Exchange, Evergrande said that since September 2021, it has been reviewing its capital structure and liquidity condition with the help of its financial and legal advisors, evaluating all available strategic options and maintaining ongoing dialogue with offshore creditors.

Here is what the company said about potentially not having enough cash:

In light of the current liquidity status of the Group, there is no guarantee that the Group will have sufficient funds to continue to perform its financial obligations. The Group is taking a comprehensive view in assessing its overall financial condition, considering the interests of all stakeholders, upholding the principles of fairness and legality, and plans to actively engage with offshore creditors to formulate a viable restructuring plan of the company’s offshore indebtedness for the benefit of all stakeholders.

Why did it make this announcement? It’s because the company has received a demand to “perform its obligations” under a guarantee for the amount of approximately US$260 million.

If Evergrande is unable to meet its guarantee obligations or certain other financial obligations, it “may lead to creditors demanding acceleration of repayment”.

Time will tell whether Evergrande is able to get through this latest problem.

What are the authorities doing about it?

According to reporting by Reuters, China’s Guangdong province has summoned the chair of Evergrande, Hui Ka Yan . Guandong province is where Evergrande is based.

The local government said that it would send people to the company to “oversee risk management, strengthen internal controls and maintain normal operations.”

It was also reported that China’s central bank, banking and insurance regulator and its securities regulator sought to reassure the market with statements.

The People’s Bank of China said:

Evergrande’s problem was mainly caused by its own mismanagement and break-neck expansion.

The People’s Bank also said that short-term risks caused by a single real estate firm will not undermine market fundraising in the medium and long term and supposedly housing sales, land purchases and financing “have already returned to normal in China.”

Reuters reported the China Banking and Insurance Regulatory Commission (CBIRC) said the Evergrande issue would not affect the industry’s normal operations and it would increase support for guaranteed rental housing. The Commission said that it believed domestic and overseas regulators would deal with Evergrande-related issues fairly.

Finally, the news agency said that the China Securities Regulatory Commission (CSRC) said any fallout for the capital market was “controllable” and it would maintain support for property developers’ funding needs.

What does this mean for ASX shares?

Evergrande is one of the biggest real estate developers in China, but it’s currently dealing with debts of more than US$300 billion. For Australia, Evergrande is a big user of steel and therefore Australian iron. If the company went under it could cause volatility.

The market will get a chance to react to this news with the share prices of ASX iron ore miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

The London-listed BHP share price dropped 2.75% on Friday, so the ASX version of BHP may or may not follow on from that.

The post Evergrande admits it may not meet debt repayments appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• These were the best performing ASX 200 shares last week
• ASX 200 (ASX:XJO) midday update: BHP higher on unification plans, TPG tumbles
• BHP (ASX:BHP) share price lifts as single listing gets green light
• Analysts say these are the ASX resources shares to buy now for big returns

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 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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Health is a topic that’s never been far from everyone’s minds in the past 18 months, so it’s worth looking at ASX shares that are contributing to our wellbeing.

Each month investment firm Morgans publishes its “best ideas”, as analyst Andrew Tang explained.

“Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence,” he said in the December ‘best ideas’ memo.

“They are our most preferred sector exposures.”

There are 2 healthcare ASX shares in Morgans’ latest list that caught our eye:

Volatile short term but excellent long term

Breathing apparatus maker Resmed CDI (ASX: RMD) is a December buy for Morgans.

That’s not to say the stock won’t be up and down over the next year or so.

“The next few quarters will likely be volatile, as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift,” said Tang.

“[But] nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

Medallion Financial managing director Michael Wayne agreed, telling The Motley Fool last week that Resmed shares are a “core position” that his clients are “comfortable” holding.

“They’re growing at double digit revenue growth and earnings growth. Margins are very, very strong.”

Although it’s pulled back about 10% from its September highs, Resmed shares have still gained more than 31% for the year to date.

No end in sight for COVID-19 tests

International pathology services provider Sonic Healthcare Limited (ASX: SHL) was one of the best-performing health ASX shares last month.

“After a poor start to the month, shares in ASX healthcare giant Sonic Healthcare finished the month 7% in the green,” reported The Motley Fool’s Zach Bristow.

“Robust demand for COVID-19 tests and vaccinations bumped the company’s sales and earnings during the quarter.”

With the Omicron emerging in recent days, Tang has no doubt this activity will continue to bring in revenue.

“We see COVID-19 testing continuing into the foreseeable future, with growth potential in COVID serology testing.”

He added Sonic’s international core business is “increasingly resilient”. 

“Strong balance sheet — gearing 21.6x, $1.3 billion headroom — [opens] the door to acquisitions, contracts and JVs.”

Sonic shares closed the week at $42.62, up almost 30% for the year.

The post 2 healthcare ASX shares that Morgans loves right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of ResMed Inc. 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 ResMed Inc. 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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