Tag: Motley Fool

Transurban Group (ASX: TCL) used to be regarded as one of the ASX’s strongest and most stable dividend shares. You had a toll-road operator (already one of the steadiest kinds of companies) that had multi-decade, government-backed, and inflation-hedged contracts, spitting out predictable dividends every year. What could go wrong? The COVID-19 pandemic, as it turned out.

The Transurban dividend sometimes used to be described as ‘recession-proof’. But the COVID-induced recession (and associated lockdowns) arguably turned Transurban’s business model on its head. For the first time in more than a decade, Transurban cut its dividend in 2020.

In 2019 it paid out a total of 59 cents per share in dividends. But 2020 saw Transurban only shell out 47 cents per share. This year has seen investors receive just 36.5 cents per share in dividends. That consisted of an interim payment of 15 cents per share that was doled out back in February, plus its August final dividend of 21.5 cents per share.

That gives Transurban shares a trailing dividend yield of 2.64% on today’s share price of $13.71 (at the time of writing).

But today, the company has announced its interim dividend that will be paid out to investors next February (on 22 February, to be precise).

So what does it hold in store? Are Transurban’s glory days back?

Transurban announces interim dividend

Well, not quite, if we’re doing an apples-to-apples comparison.

Transurban announced that its first dividend of 2022 will be another unfranked 15 cents per share payment, mirroring its interim dividend of 2021. Transurban shares will trade ex-dividend for this payment on 30 December. That means the company’s forward dividend yield will stay at the same level as its trailing one. That’s 2.64% on today’s pricing.

Transurban also stated that “it expects the total FY22 distribution will be in line with Free Cash, excluding Capital Releases”.

So it looks as though shareholders will have to wait a little longer for Transurban’s old dividend levels.

At the current Transurban share price, the company is up around 1% year to date and flat over the past 12 months.

The post The Transurban (ASX:TCL) interim dividend has just been announced. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP higher on unification plans, TPG tumbles
• The Transurban (ASX:TCL) share price has gone nowhere this year. What now?
• 2 more of Morgans’ best ASX share ideas for December
• Have ASX shares “gone crazy”?
• 2 high quality ASX shares for a retirement portfolio

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is in the red today as one fund manager names the company’s stock his short pick.

Regal Funds Management chief investing officer Philip King reportedly told the Sohn Hearts & Minds conference the company’s recent gains make it an ideal short target.

At the time of writing, the Flight Centre share price is $17.18, 0.87% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently sporting a 0.12% gain.

The company’s dip comes despite international travel stocks broadly gaining overnight, as my Foolish colleague has reported.

Here’s why this fundie is bearish on Flight Centre.

Fundie says Flight Centre share price a short target

The annual Sohn Hearts & Minds conference is here again, and once more the market is entranced with its “deliberately disruptive programming”.

And one stock that might be bearing that brunt today is Flight Centre, which was taken down a peg by King.

King reportedly compared the travel agency’s shares to those of Zoom Video Communications Inc (NASDAQ: ZM). According to reporting by The Australian, the fundie said the market was enthusiastic about Zoom last year as the world began working, socialising, and relaxing online, but that soon dissipated.

That’s the future he predicts for the travel agency’s shares.

The Flight Centre share price has now rebounded around 95% from its intra-COVID lowest close of $8.75. Though, it’s still significantly lower than its highest ever close – $62.43.

However, over the course of the pandemic, the company raised $800 million through issuing convertible notes.

King reportedly told the conference if its share price goes up, noteholders will convert their holdings into shares, thereby diluting the holdings of Flight Centre’s investors.

Whereas, if the share price goes down, bondholders won’t convert their bonds and the company will be faced with a bill.

If King’s prediction comes true, it could leave Flight Centre’s stock without room for growth or setbacks.

According to the latest data, 13.7% of the company’s shares are already in a short position.

And it’s not just Flight Centre’s financials and future share price King has taken issue with. He’s concerned about the company’s business model too.

Will Flight Centre be profitable post-COVID?

When the pandemic hit, Flight Centre began raising capital and cutting costs. That saw the company shutting down more than half of its bricks-and-mortar stores.

King reportedly believes the company will struggle to bring in the revenue it did prior to COVID-19 in the future as a result of the closures.

Additionally, it might not get the sort of incentives it used by directing travellers’ business to airlines.

King states that, more and more, airlines are pushing for customers to book directly, thus, bypassing Flight Centre’s commission. The Australian quoted him as saying:

The business was already facing a lot of difficulty before COVID-19. It has been slower than many other travel agents in migrating to a digital world.

It is doing a reasonable job, but online travel is a lot more competitive than the high street.

Right now, the Flight Centre share price is 7% higher than it was at the start of 2021. Though, it has fallen 42% over the last 5 years.

The post Flight Centre (ASX:FLT) share price falls again amid Sohn short pick appeared first on The Motley Fool Australia.

More reading

• Is the Qantas (ASX:QAN) share price at risk of a capital raise?
• 3 ASX travel shares to buy while Omicron scares everyone
• Why did the Flight Centre (ASX:FLT) share price go backwards in November?
• How did ASX 200 travel shares weather the Omicron storm today?
• Flight Centre (ASX:FLT) share price partially recovers as boss calls for calm

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 Zoom Video Communications. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Zoom Video Communications. 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 Megaport Ltd (ASX: MP1) share price is pushing higher today despite a lack of news from the company.

At the time of writing, the global software company’s shares are fetching $20.95, up 1.85%. The Megaport share price has gained 8.6% in the last month alone. However, these returns could be the tip of the iceberg if Firetrail Investments’ Eleanor Swanson is on the money.

The fast-growing cloud-based telecommunications business has been tipped by Swanson at the Sohn Hearts & Minds Investment Conference.

Why are Megaport shares a top pick for 2022?

A founding partner of Firetrail, Swanson is no stranger to picking stock market winners. In fact, last month we covered the story of how the investment manager landed on Afterpay Ltd (ASX: APT) long before the company rose to the ranks of one of the market’s darlings.

Given her success, the stock picker’s selection for the Sohn conference was highly anticipated. As we now know, the top pick is Megaport shares. But why exactly is Swanson so bullish on the company — going so far as to say it is “the most exciting tech adventure this decade”?

Fundamentally, the pitch given focuses on Megaport’s edge over traditional telecommunication companies. Swanson highlighted that Megaport’s network is faster, more flexible, and much cheaper than its incumbents.

Adding to this, the 50% per year increase in spending by customers indicates a loyal customer base. While its existing customer base is growing, so too is its new customer additions.

Swanson noted the deals with large US network providers such as Cisco and VMware have increased Megaport’s sales force to 40,000.

In 2022 Megaport will work with the giants of industry to deliver a better network to thousands of businesses. The little challenger network is now on the precipice of greatness.

Eleanor Swanson, Firetrail Investments

Where could it land?

Encouraged by the rate of growth presented by the company, Swanson expects there’s a big potential for Megaport shares.

By the end of next year, the stock picker believes it wouldn’t be out of the question for the company’s shares to be going for $40 apiece. This would suggest a potential upside of around 91% based on the current valuation of Megaport on the ASX.

The post Why this fundie thinks Megaport (ASX:MP1) shares are ‘the most exciting tech adventure of this decade’ appeared first on The Motley Fool Australia.

More reading

• 4 best-performing ASX tech shares in November
• These were the 5 best performing ASX 200 shares in November
• 3 fantastic ASX shares to buy this month
• 3 ASX 200 shares cruising past 52-week highs today
• Race to the top: These 3 ASX shares all smashed new 52-week highs today

Motley Fool contributor Mitchell Lawler 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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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 Novonix Ltd (ASX: NVX) share price is tanking today. At last check, shares are down 26.58% on a volume of 134% of its 4-week trading average.

There’s been no market-sensitive information out of Novonix today. However, the battery materials and technology company has shrugged off a wider-market selloff of late and remains up nearly 640% this year to date. At the time of writing, Novonix shares are exchanging hands at $8.92 apiece.

However, not all those familiar with the company are as rosy on its outlook. Could the bubble be bursting for Novonix? Let’s take a closer look.

Lithium continues its flight

The spot price of lithium has continued its upward trajectory in November. This comes as rising demand for electric vehicles (EV) and renewables underscored the costs of the raw material.

Deliveries of EVs to China, the world’s largest importer of lithium-ion batteries, is expected to be double that of last year and total around 3 million units, Trading Economics says.

The dynamics of demand and supply for lithium — and lithium-style batteries, specifically — have bolstered prices for the metal in 2021. That’s according to analysis from Goldman Sachs, FactSet, Statista the International Energy Agency, CRU Group, Roskill, and Bloomberg Intelligence.

These price gains are a net positive for battery specialists such as Novonix and their margins, according to these experts. Reuters confirms this dynamic in a report from August 2021. It says the “lithium-ion battery sector is benefitting from rising prices of the raw material [lithium] amid robust demand”.

Is the bubble bursting?

Looking at the industry on a macro-thematic level – absolutely not, according to the bulk of analysis on the EV, lithium-ion battery, and lithium mining sectors.

Demand for batteries looks set to continue rising into the coming periods. This, combined with the push away from fossil fuels in energy and fuel production, could see widespread adoption in the global economy.

However, former Bank of America asset manager Tom Richardson, referencing Novonix in yesterday’s Australian Financial Review, said there are “dozens, or perhaps hundreds, of other lithium or green-focused businesses that will rely on positive sentiment and announcements (rather than cashflows) to justify staggering valuations over the next 12 months”.

Richardson submits there is a disconnect between share prices and underlying fundamentals in the industry. For instance, he states Novonix recently reached a market capitalisation of $6 billion on revenue of just $1.6 million for the previous quarter.

The report also notes that during the quarter, Novonix spent just $906,000 on research and development, but spent $1.5 million on product and operating costs.

Not only that, the company has issued equity to secure almost $249 million in cash on the balance sheet. US company Philips 66 also took a 16% stake in the company in August via a US$150 million equity investment for almost 78 million shares.

Further analysis

Analysts at Morgans Financial also rate Novonix as a ‘hold’ and value the company at just $7.50 per share. Further analysis obtained from Bloomberg Intelligence shows the company’s return on invested capital (ROIC) of -9.12% is lower than its cost of capital at 9.4%. It therefore misses this hurdle with an 18% spread.

Moreover, Bloomberg also shows the company is trading at 678x sales, and that investors are paying more than 21x its book value of equity to invest right now. That’s a substantial premium to the median values of its peer group.

What impact this will have on the Novonix share price is yet to be seen.

What’s next for the Novonix share price?

In reality, it is unwise to try and accurately predict the rise and fall of market/company bubbles, or even extended market movements either way.

The fact is Novonix is centred in a high-growth industry that is currently at scale and has a unique product that aims to improve the battery technology sector.

However, listed companies in the industry are trading at lofty valuations, and some experts are questioning whether these valuations are justified on the basis of company-specific fundamentals – not so much the lithium industry itself.

With this in mind, investors will be seeking names such as Novonix to justify their valuations in the near future, according to the commentary analysed for this report.

Novonix continues to shrug off these short-term headwinds. The Novonix share price has rocketed 725% over the last 12 months. It’s also up more than 11% in the past month.

The post Is the bubble bursting? Novonix (ASX:NVX) share price plunges 27% appeared first on The Motley Fool Australia.

More reading

• Novonix (ASX:NVX) share price combats today’s selloff to remain up 44% in a month. Here’s why
• These were the 5 best performing ASX shares in November
• Here are the top 10 ASX shares today
• Here are the top 10 ASX shares today
• Why is the Novonix (ASX:NVX) share price surging 11% to an all-time high today?

The author 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 Bendigo and Adelaide Bank Ltd (ASX: BEN) share price dropped 7% in November 2021. What could be next for the regional bank?

Last month saw the challenger bank drop from $9.25 to $8.57.

What happened in November 2021 that may have impacted the Bendigo share price?

Whilst there has been significant commentary on the Omicron COVID-19 variant and inflation impacts on potential interest rates, Bendigo Bank itself did make two notable ASX announcements.

AGM

One event was the bank’s annual general meeting (AGM), where it gets to tell shareholders about the last financial year and normally comments on the outlook for the next financial year (and beyond).

Bendigo Bank noted that it has been growing its customer numbers and market share in both landing and deposits through improved productivity, speed to market, its “robust” balance sheet and digital acquisitions and investments.

Its customers numbers grew 9.6% to more than 2 million, whilst its net promoter score – a metric which measures the likelihood of customers recommending the bank to a friend or colleague – remains nearly 26 points ahead of the industry average.

The key strategic focus of the business is to reduce complexity, invest in capability and tell its story to customers so that it’s Australia’s bank of choice and drive long-term sustainable value.

It’s seeking partners that can help extend the bank’s reach and capability. This can be in a number of different areas including product providers, technology, distribution or unique partnerships.

Bendigo Bank recently acquired Ferocia to accelerate its digital strategy and Up’s growth. Up is Australia’s highest rated banking app.

Management also commented that in this year, the bank has continued to grow market share, customer numbers, total lending and deposits. Hearing about ongoing growth can have an impact on investor thoughts about the Bendigo Bank share price.

Another positive that Bendigo referred to was that the economic contraction was not as severe through the pandemic as initially expected, which has improved the forward outlook.

Digital transformation

Near the end of November 2021, Bendigo outlined its digital transformation roadmap.

In FY22 and FY23 the bank outlined that it’s going to work on loan processing automation. Between FY22 and FY24 it’s continuing broadening its in-app sales and self-service capability, as well as offering new digital propositions.

It outlined a number of targets that it wants to achieve by FY24, improving from what that metric was in FY19.

Bendigo Bank wants to improve the average time to a decision for home loans from 22 days to 1 day. The bank wants to improve the percentage of automated credit decisioning on home loans from 0% to 90%. It wants to increase the percentage of active e-banking customers from 53.9% to 90%. Finally, it wants to grow the percentage of sales by digital channels from 19.2% to 60%.

Is the Bendigo Bank share price good value?

Brokers are mixed on the regional bank. One of the most recent ratings has come from Citi, which rates it as a ‘neutral’ with a price target of $9.25.

The post The Bendigo and Adelaide Bank (ASX:BEN) share price lost 7% in November. What’s next? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 top-performing ASX 200 banks of November
• What’s JP Morgan saying about ASX 200 bank shares?
• Here’s why these 3 All Ordinaries shares just hit 52-week lows
• It’s a buy: Why did Jefferies just upgrade the Bendigo Bank (ASX:BEN) share price?
• Why is the Bendigo Bank (ASX:BEN) share price having such a tough time of late?

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 owns shares of and has recommended Bendigo and Adelaide Bank 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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 As we discussed earlier this week, the Vanguard MSCI Index International Shares ETF (ASX: VGS) is one of the most popular exchange-traded funds (ETFs) on the share market today. According to data from CommSec, VGS is currently the sixth-most popular ETF on the ASX boards. As well as the second-most popular ETF that invests outside the ASX. 

As it stands today, this Vanguard International Shares ETF has more than $4.3 billion in funds under management (FUM).

In addition to being one of the most popular ETFs on the ASX boards, VGS is also one of the most diversified. If you think the ASX’s most popular fund – the Vanguard Australian Shares Index ETF (ASX: VAS) – is diversified with its 300 or so holdings, this will knock your socks off. 

As it stands today, VGS is currently invested in more than 1,500 different underlying companies, spread across more than 20 countries. Its largest weighting is by far to the United States, which commands almost 70% of this ETF’s underlying portfolio. But other advanced economies also have a meaningful presence. These include Japan, the United Kingdom, Canada, Singapore, New Zealand and a range of European countries.

Earlier this week, we covered VGS’s performance, which has been a lot better than the ASX’s over the past decade or so. Vanguard’s ASX 300 VAS ETF has averaged a return of 10.99% over annum over the past five years. In contrast, VGS has managed 15.96% per annum over the same period.

But how does VGS fare when it comes to paying out income, something that many ASX investors are perpetually interested in?

What kind of dividend income does VGS provide?

Like most Vanguard ETFs, VGS pays out a quarterly dividend distribution ito its investors. It’s last four distributions were as follows:

• 40.34 cents per unit for the quarter ending 31 December 2020
• 31.56 cents per unit for the quarter ending 31 March 2021
• 81.3 cents per unit for the quarter ending 30 June 2021
• 34.26 cents per unit for the quarter ending 30 September 2021

That adds up to a trailing annual distribution of $1.87 per unit.

On today’s present VGS unit price of $105.28, that gives VGS a trailing yield of 1.78%.

Although VGS doesn’t hold the kinds of income-spewing ASX shares at its top as VAS does, it still holds a number of formidable dividend payers in its largest holdings. These include Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ) and Exxon Mobil Corp (NYSE: XOM).

The Vanguard MSCI Index International Shares ETF charges an annual management fee of 0.18%.

The post What kind of dividend does the Vanguard International Shares ETF (ASX:VGS) pay? appeared first on The Motley Fool Australia.

More reading

• VGS vs VAS: Which ETF comes out on top?
• 2 leading ASX ETFs for excellent global diversification
• 3 ETFs for ASX investors to buy now
• Here’s why not all ASX ETFs are created equal
• Why do investors buy the Vanguard Australian Shares Index ETF (ASX:VAS) when they can buy individual shares?

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Johnson & Johnson. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Microsoft and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Apple and Vanguard MSCI Index International Shares ETF. 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.

This has been a tough year for ARK Invest founder and CEO Cathie Wood. Her style of investing has fallen out of favor, and many of her larger holdings have shed more than half of their peak values.

Among her funds’ holdings, Twilio (NYSE: TWLO), Zoom Video Communications (NASDAQ: ZM), and Toast (NYSE: TOST) are down by 43%, 56%, and 50%, respectively, from the all-time highs they hit earlier this year. ARK Invest added to all three positions on Wednesday.

Twilio

The best performer on this list — relatively speaking, of course — is Twilio, which has shed more than 40% of its value since peaking in February. It’s a pretty dynamic company, providing developers of some of the most popular smartphone apps with in-app communication solutions. 

What does this mean exactly? Well, if you’re hailing a ride, it’s Twilio helping you communicate with your driver. Twilio can help parties communicate by text or voice without having to leave a business’s app or reveal sensitive contact information. Its success is tethered to the success of its active customers, which now number more than 250,000. Its dollar-based net expansion rate of 131% means that its returning developer clients are, on average, spending 31% more with Twilio than they were a year ago. This is a testament to both increased usage volume and the company’s ability to “land and expand” with other platform offerings. 

Twilio’s revenue soared by 65% in its latest quarter, but acquisitions have typically padded its top line. Organic revenue rose by just 38%, and that result didn’t please the market despite it being a healthy rate of year-over-year improvement. Investors are also concerned about larger than expected losses in Twilio’s refreshed guidance, but you have to give the company the benefit of the doubt when it comes to investing in its future. 

Zoom Video Communications

Another stock that was doing poorly this year even before its latest financial update sent the shares even lower is Zoom. The videoconferencing giant erupted onto the scene early last year when people found themselves in sudden need of an intuitive videoconferencing solution that would allow them to keep learning, working, and socializing during the early months of the COVID-19 crisis. 

The public isn’t as interested in the stock these days, but the irony here is that Zoom is still growing, even as we’re now in the third quarter of lapping pandemic-era financials. Its revenue rose 35% in its most recent quarter, beating expectations and signaling that the platform’s premium subscriptions are still essential purchases. Management is guiding for growth to decelerate to 19% in the current quarter, and even a recently botched acquisition isn’t stopping the company from expanding its offerings to take advantage of its still sizable audience. 

Toast

Restaurants are Toast these days, and that capitalization isn’t a typo. More than 48,000 restaurants are leaning heavily on Toast, a cloud-based platform that manages everything from incoming orders to inventory management to customer loyalty programs. 

Revenue skyrocketed by 105% through the first nine months of this year, and that was after climbing 24% in 2020 when most eateries were running with scaled-back operations. As we venture out to our favorite restaurants again — and as Toast helps owners with the tech required to handle the boom in digital take-out and third-party delivery app orders — Toast is well-positioned as a reopening play. But the stock has shed half of its value since peaking shortly after the company went public in late September.  

Twilio, Zoom, and Toast remain viable growth stocks. They’re just a lot cheaper now than they were earlier this year, and ARK Invest’s Wood isn’t afraid to follow some of her favorite stocks lower. 

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

The post Cathie Wood goes bargain hunting: 3 stocks she just bought appeared first on The Motley Fool Australia.

More reading

• Why Zoom shares plunged on Tuesday
• Is the bull market in high-growth Nasdaq stocks over?

Rick Munarriz 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 Twilio and Zoom Video Communications. The Motley Fool Australia has recommended Twilio and Zoom Video Communications. 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 Pan Asia Metals Ltd (ASX: PAM) share price is up today after a positive drilling update from its prospect in Thailand.

The Pan Asia Metals share price is currently up 1.08% at 47 cents after surging to an intraday high of 53 cents in early trade.

Pan Asia Metals is an ASX battery metals explorer with four lithium projects in southern Thailand.

What did the company announce?

Investors have reacted positively to the company’s lithium drilling results from its Reung Kiet Lithium prospect.

In today’s release, Pan Asia Metals advised testing results from four drill holes at the mine showed strong lithium mineralisation with robust thickness and grades.

This follows promising lithium results from 6 additional drill holes at the mine, as reported in September.

Lithium is heavily used in electric vehicle (EV) battery technology, which is gaining momentum in Asia and globally.

The company noted its 4 Southeast Asian projects were close to growing EV markets, reducing shipping costs.

Management commentary

Pan Asia Metals managing director Paul Lock said:

We continue to be very satisfied with the assay results we are seeing.

Our drilling results suggest that a 10,000 tonne per annum lithium chemical plant is a realistic objective.

Pan Asia Metals share price snapshot

The Pan Asia Metals share price has surged 235.7% in the past 12 months. This compares favourably against the All Ordinaries Index (ASX: XAO), which is up 10.17% in the past 52 weeks.

However, the company’s share price has dropped 12.9% in the past month.

The post Why did the Pan Asia Metals (ASX:PAM) share price surge 10% today? appeared first on The Motley Fool Australia.

More reading

• Can Wesfarmers (ASX:WES) win the battle to take over API?
• Why are people talking about Techtronic Industries shares today?
• Here’s why the Critical Resources (ASX:CRR) share price is surging 16% today
• Here’s why the Tuas (ASX:TUA) share price is leaping 10% to a record high on Friday
• How did the Macquarie (ASX:MQG) share price stack up in November?

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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Competition between Wesfarmers Ltd (ASX: WES) and Woolworths Group Ltd (ASX: WOW) has burst into an inferno as the pair go head to head to take over the owner of Priceline.

The latter retail giant lobbed a bid for Australian Pharmaceutical Industries Ltd (ASX: API) yesterday. Its offer surpasses Wesfarmers’ longstanding takeover bid by 12.9%.

At the time of writing, the Wesfarmers share price is $57.38, 0.76% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.02%.

Wesfarmers back in the ring to take over API

Wesfarmers is once again in a surprise battle to win all API’s remaining shares despite its takeover offer having already been accepted by the pharmaceutical company.

API agreed to go ahead with Wesfarmers’ $763 million acquisition offer earlier this month after fellow pharmaceutical company Sigma Healthcare Ltd (ASX: SIG) redacted its takeover offer.

But that could all be upset now Woolworths has outbid Wesfarmers by more than $100 million.

Both companies are looking to acquire the company – which would see them owning Priceline stores. Thus, it would see the winner expanding into the growing health, wellbeing, and beauty market.

However, Woolworths’ inclusion in the battle for the pharmaceutical giant has raised the eyebrows of the Pharmacy Guild of Australia.

A spokesperson for the guild said it’s looking forward to “having many conversations with the Woolworths team as well as with Prime Minister Scott Morrison and Leader of the Opposition Anthony Albanese” regarding Woolworths’ potential takeover. They questioned:

Why is a company with interests in the alcohol, tobacco, gambling, and nightclub industries wanting to move into healthcare?

How does it hope to convince Australians that it is serious about their health and welfare?

How will it ensure the successful community pharmacy model, which is custodian of the PBS (Pharmaceutical Benefits Scheme), is protected and maintained?

Woolworths Group CEO Brad Banducci has stated the company would be committed to supporting API’s community pharmacy partners. It will also ensure all Australians have access to a full range of PBS and other medicines. He also commented:

Health and wellness is a large, fast-growing category and API would be a fantastic addition to our food and everyday needs ecosystem.

All eyes will be on Wesfarmers and Woolworths – and their share prices – as the retail giants battle to get a foothold in the increasingly lucrative market.

The post Can Wesfarmers (ASX:WES) win the battle to take over API? appeared first on The Motley Fool Australia.

More reading

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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 owns shares of and has recommended Wesfarmers 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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Have you heard whispers of a company called Techtronic Industries Co. Ltd. (HKG: 0669) and wondered what people are talking about? Many ASX investors might not have heard of Techtronic Industries shares prior to today. But a mention in the annual Sohn Hearts & Minds Investment Conference has brought the company into focus.

For starters, we have to explore beyond the realm of the ASX for this one. Rather than being on our local exchange, Techtronic trades on the Stock Exchange of Hong Kong. This might explain why some investors aren’t too familiar with the business. However, if you have done some DIY projects there’s a good chance Techtronic’s products have been in your hands.

So, what is Techtronic, and what is all the fuss about Techtronic Industries shares today?

Putting the power in your hands

While the name Techtronic Industries may not resonate, the company’s brands will likely ring a bell. The US$39 billion power tool and outdoor equipment company encompasses recognisable brands including Milwaukee, AEG, and Ryobi.

In addition, the company operates through brands such as Homelite, Kango, Hoover, and Vax. The common denominator across all of their brands is that their products are cordless. This improves safety and ease of use for everyone from the casual DIYer to the everyday professional.

At today’s Sohn conference, Cooper Investors portfolio manager Qiao Ma has called out Techtronic Industries shares as her pick for 2022. She described it as more of a Silicon Valley company than an industrials company.

Ma said:

Every component that goes into a Techtronic power tools product, every step of the production process has been carefully thought through to make sure they stay at the forefront of technology. Let’s use batteries as an example. As early as 2004, Techtronic migrated its entire toolset into lithium-ion batteries.

The company has experienced an incredible surge in revenue and earnings in the past financial year. In FY21, revenue increased 47% to US$12 billion. Similarly, the company’s net profit ballooned by 50% to US$992.791 million.

The case for Techtronic Industries shares

Ma makes the case for her highest conviction stock pick for 2022. The portfolio manager believes the company’s obsession and focus on a niche industry gives it an edge when it comes to understanding its customers.

Furthermore, in the past year, Techtronic has launched 500 new products. In Ma’s view, this category expansion is limitless and offers a lot of upside in increasing sales.

Speaking of which, the portfolio manager highlighted the company’s ability to grow sales at 13% per year over the past 13 years, stating:

That tells us one thing, that Techtronic is not growing sales by cutting prices and competing on volume, it’s really creating a premium end product and commanding a very healthy product margin.

At the time of writing, Techtronic Industries shares are sitting at $170.30. However, Ma believes it could reach $250 per share within 12 to 18 months.

The post Why are people talking about Techtronic Industries shares today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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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