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The Critical Resources Ltd (ASX: CRR) share price is shooting higher today, up 16% at time of writing.

Below, we take a look at the junior explorer’s early drill results that look to be spurring ASX investor interest.

What drill results were announced?

The Critical Resources share price is surging after the explorer reported promising early drill results at its 100% owned Gibsons prospect. The prospect is part of the Halls Peak project, located in New South Wales.

This is the first time that Halls Peak, which Critical Resources labels “a prime exploration area” is being surveyed using modern airborne geophysical exploration techniques.

In this morning’s release, the company reported that the first drill hole of its 2,500 metres diamond drilling exploration program intersected shallow massive sulphide mineralisation in the first 47 metres drilled of a planned 140 metre hole.

The series of stacked massive sulphide lens represent “exhalative accumulations of fluids” containing zinc, lead, copper, silver and gold.

Commenting on the results, Critical Resources managing director Alex Biggs said:

We couldn’t ask for a better start to our drilling campaign at Gibsons after intersecting massive sulphide mineralisation in our first drill hole. We believe that what we see here is indicative of the larger Halls Peak system and we will continue drilling with a view to define the scale and potential of this asset… We look forward to keeping the market updated with more results in the near future.

Drilling at the prospect is ongoing, and the miner will send cores to the ALS laboratory in Brisbane for assaying once the first hole is completed.

Critical Resources share price snapshot

The Critical Resources share price is up 145% in 2021, which compares to a gain of 9% posted by the All Ordinaries Index (ASX: XAO).

Over the past month, Critical Resources shares are up 14%.

The post Here’s why the Critical Resources (ASX:CRR) share price is surging 16% today appeared first on The Motley Fool Australia.

More reading

• 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?
• Omicron what? Dow Jones shakes off fears, surges 680 points
• Here are 6 of the worst performing ASX shares of November
• 5 best ASX 200 resource shares to hold 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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The Tuas Ltd (ASX: TUA) share price is rocketing to an all-time high today. This comes ahead of the telco provider’s planned annual general meeting (AGM) today, covering business updates and its FY22 outlook.

At the time of writing, Tuas shares are soaring 11.86% to a record high of $2.17. In contrast, the All Ordinaries (ASX: XAO) is up 0.14% to 7,546.5 points.

Key takeaways at Tuas’ AGM

The Tuas share price is rallying into unchartered territory as investors appear excited about the company’s growth plans.

Ahead of its AGM, Tuas highlighted in its pre-released presentation the group financials, including TPG Singapore’s performance.

The company achieved unaudited revenue of $12.2 million for the 3-month period ending 31 October 2021.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came to $3.7 million, compared to a loss of $2.4 million in the prior quarter. TPG Singapore accounted for an unaudited $3.8 million for Q1 FY22, reflecting the strong performance in a challenging environment.

Tuas closed at the end of October with a cash balance of around $92,000, including term deposits to secure bank guarantees.

Its subscriber base has continued to grow, with the latest figures reaching 435,000 subscribers as of 30 November. Average revenue per user (ARPU) stands at around $9.45.

In regards to the 5G updates, the company has been provisionally awarded a 5G spectrum in the 2.1 GHz spectrum auction. At a cost of $31.72 million, the deal comes with a 15-year license. This allows TPG Singapore to use this spectrum in operating its own 5G network in the country.

The rollout begins in the first quarter of 2022, with the launch of 5G standalone services in 2022.

Looking ahead, Tuas advised that its EBITDA for the year is above the current budget.

Tuas share price snapshot

In addition to today’s significant rise, the Tuas share price has jumped over 210% in the past 12 months. However, when looking at year-to-date performance, the company’s shares are up around 180%.

Tuas commands a market capitalisation of about $978.85 million, with approximately 463.91 million shares on its books.

The post Here’s why the Tuas (ASX:TUA) share price is leaping 10% to a record high on Friday appeared first on The Motley Fool Australia.

More reading

• Tuas (ASX:TUA) share price surges again, up almost 30% this week. Here’s why
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• Tuas (ASX:TUA) share price jumps 5% on acquisition news
• Experts say Tuas (ASX:TUA) share price is a buy even after its 50% surge

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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Shares in Australian investment bank Macquarie Group Ltd (ASX: MQG) marginally outperformed the benchmark S&P/ASX 200 index (ASX: XJO) last month.

Whereas the broad index slipped 1.56% into the red, the Macquarie share price dipped by 0.97%.

How did Macquarie shares compare to other financials?

The S&P/ASX 200 Financials index (ASX: XFJ) declined 7.4% in November, demonstrating weakness in the sector. But Macquarie outperformed, with each of the other major financials booking substantial losses for the month.

In the early days of November, Macquarie shares once again breached the illustrious $200 per share mark. The stock continued on to post a record closing high of $208 mid-month.

After a smooth acceleration upwards to its record high, the Macquarie share price then levelled off and reversed course. This came amid reports of an industry-wide $80 billion tax scandal towards the end of November. The scandal stems from a German tax loophole believed to have been exploited by many banks between 2001 and 2012.

Whilst Macquarie is amongst more than 100 financial institutions being investigated, its involvement was enough to catch the market’s attention and derail investor sentiment.

As fellow investment bank, JP Morgan recently put it, the FY21 major bank reporting season was “very volatile”.

The mixed results had investors rethinking their capital allocation to ASX financials, according to the broker. This boded poorly for the sector.

Despite the challenges, Macquarie shareholders were relatively unscathed in November and held on to their year-to-date gains.

Is today’s Macquarie share price a buying opportunity?

The team at JP Morgan reckons so. They value Macquarie shares at $214. On Friday afternoon, the Macquarie share price is $199.77, so this implies an upside potential of 7%.

JP Morgan thinks growth trends are set to continue in Macquarie’s Commodities and Global Markets (GCM) segment in FY22. This division has already delivered a 60% year-on-year growth in net profit after tax (NPAT) contribution in the first half.

The broker also notes that Macquarie Investment Management (MIM) will benefit from the Waddell & Reed acquisition.

It also says the bank’s Banking & Financial Services (BFS) division has “potential to double the size of the Australian mortgage book over the next three to four years”.

Fellow broker Jefferies is also bullish and assigns a $214 target on the Macquarie share price.

However, the team at Morgan Stanley have the most optimistic projections, valuing Macquarie at $245 per share from internal modelling.

Finally, the team at Citi recently upgraded its rating on the bank following its first-half results in September. Citi notes it is the fourth sequential quarter that Macquarie recognised more than $1 billion in net profit.

In a recent note, the broker also confirmed that Macquarie’s share purchase plan has had no impact on its price valuation of the Aussie investment bank.

It values Macquarie at $226 per share, implying a margin of safety of more than 13% at the time of writing.

Overall, 62% of the analysts covering Macquarie have it as a buy. Just one broker says sell with a $145 share price target.

The Macquarie share price has risen by 44% in the past 12 months.

The post How did the Macquarie (ASX:MQG) share price stack up in November? appeared first on The Motley Fool Australia.

More reading

• Did the Rio Tinto (ASX:RIO) share price start a recovery in November 2021?
• Macquarie (ASX:MQG) share price gains as former RBA governor named chair
• ASX shares to buy for the Omicron COVID outbreak
• What’s JP Morgan saying about ASX 200 bank shares?
• Here’s why some ASX 200 bank shares are having a terrific Tuesday

Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. 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.

Investors are breathing a sigh of relief on Dec. 2 following yesterday’s Dow Jones Industrials (DJINDICES: ^DJI) 462-point decline. At 2:11 p.m. ET, the Dow Jones is up 680 points, or 2% higher, as investor worry about the Omicron variant of the coronavirus fades. Today’s gains are broad, with 26 of the Dow Jones’ 30 component stocks, including Boeing, higher today. 

Today’s gains are led by aerospace giant Boeing (NYSE: BA), one of yesterday’s worst performers. Shares are up more than 5% on both the reduced fears that Omicron will lead to broad travel bans and news that Chinese regulators are set to recertify the 737 MAX for commercial operation in that country. 

Following on Boeing’s heels are payments and credit card giants Visa (NYSE: V) and American Express (NYSE: AXP), with shares up more than 4% on a hopeful outlook about the recovery of global travel and spending. Shares of yesterday’s biggest loser, Salesforce.com (NYSE: CRM), are also up almost 3% today following yesterday’s double-digit drop after giving underwhelming guidance for its fourth quarter. 

Today’s worst-performing Dow stock is Apple (NASDAQ: AAPL), down more than 1% on rumors that demand for the iPhone 13 is falling. 

Boeing investors hopeful on China and continued travel recovery

Word first got out a couple of weeks ago that the Civil Aviation Administration of China (CAAC) was getting closer to letting the company’s flagship, narrow-body jet return to commercial service. But a report in The Wall Street Journal on Thursday offered more detail, including what looks like a complete list of changes it requires Boeing to make. That’s a serious step toward recertification that would also likely lead to a big jump in orders for Boeing aircraft to service Chinese markets after a multiyear freeze on sales to Chinese operators. 

Boeing’s gains, exceeding most stocks today, weren’t just a product of good news out of China. Like the other consumer and travel-related companies that gained sharply today, investors are also betting that travel and spending will continue to trend higher, and the initial worries about the Omicron coronavirus variant are probably overdone. 

Omicron bull market?

It seems that many investors believe that to be the case, with most of yesterday’s biggest losers and many of the Dow Jones stocks that fell yesterday reporting gains. These include Visa and American Express, which have seen most of their in-country payment volume recover and surge past 2019 levels. However, both have seen cross-border transactions from travel continue to lag pre-COVID numbers. Investors also sent bank stocks up today, with Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) up more than 2.5% on hopes for continued economic health and the potential that interest rates will move higher sooner rather than later. That’s a positive for lenders. 

Shares of Caterpillar (NYSE: CAT) and Walt Disney (NYSE: DIS) also gained more than 2.5% today, on expectations that businesses will continue to buy heavy equipment, and consumers will continue to spend and increasingly travel, ideally to Disney resorts and theme parks. Home Depot (NYSE: HD), one of yesterday’s biggest winners, gained another 2% today as investors remain convinced that the home improvement giant will continue to win customers looking to improve their current home or update the home they just bought. Housing demand continues to remain sky-high, a positive indicator for the home improvement giant’s prospects. 

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

The post Omicron what? Dow Jones shakes off fears, surges 680 points appeared first on The Motley Fool Australia.

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Jason Hall owns shares of Visa and Walt Disney. American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Salesforce.com. The Motley Fool Australia has recommended Apple, Salesforce.com, and Walt Disney. 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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November left a lot to be desired for ASX investors. Over the month just gone, the All Ordinaries Index (ASX: XAO) went backwards by roughly 0.7%, meaning most ASX shares had a rough month. But some certainly fared worse than others.

So here are 6 of the worst performing shares on the ASX share market over November.

6 of the worst ASX shares in November

Westpac Banking Corp (ASX: WBC)

ASX big four bank Westpac is our first poor November performer. Westpac had a rough month, going from $25.67 a share at the end of October to $20.52 a share a month later. That’s a drop of roughly 20.1%. This seemed to be catalysed by the bank’s full year earnings report for FY2021 that was released at the start of the month.

Even though Westpac announced a 138% increase in statutory profits, and a final and fully franked dividend of 60 cents a share, investors seem to have been selling out ever since. This steep decline has pushed Westpac’s dividend yield up to 5.74% on today’s pricing at $20.54 a share.

Zip Co Ltd (ASX: Z1P)

Buy now, pay later (BNPL) share Zip Co was another poor performer in November. This company continued the disappointing year it has had in 2021 last month, going from $6.50 a share at the start to end up at $5.17 by the end – a drop of 20.5%. There weren’t any major catalysts for Zip that might easily explain this move. However, BNPL shares like Zip seemed to have a rough time across the board. Its rival Afterpay Ltd (ASX: APT) fell nearly 12% over the month as well.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

ASX pharma share Clinuvel didn’t have a great time of it last month either. This company began November at $38.61 a share, but ended up finishing at $28.77. That’s a fall of 25.5% or so. My Fool colleague James attributed this to a broker note out of Jefferies. Over the month, Jefferies downgraded the company to a ‘hold’, partly over concerns with Clinuvel’s flagship Scenesse product facing rising competition.

Nearmap Ltd (ASX: NEA)

Nearmap was yet another disappointing investment over November. This aerial mapping company went from $2.21 a share on market close 29 October, to finish at $1.60 on Tuesday afternoon. That’s a painful drop of 27.6%. This appears to have been sparked by Nearmap’s guidance for FY2022 that the company released halfway through the month.

Even though Nearmap told investors that it is expecting the value of its contracts to grow between 17% and 24.8% for FY2022 over FY21’s $133.8 million, Neaprmap shares still continued to fall. 

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is next up. This charity and church-focused payments company had a shocker last month, falling from $1.80 a share all the way down to $1.30 by Tuesday. That’s a drop of 27.8%. These woes seem to stem from the company’s update from 10 November. This was Pushpay’s half-year results, which included a 9% rise in revenues to US$93.5 million, alongside a 43% increase in net profits after tax to US$19.1 million.

But unfortunately for the company, it also included an earnings guidance downgrade for FY2022. It previously flagged earnings of between US$66 and US$71 million, but now is only anticipating between US$62 million and US$67 million.

Tyro Payments Ltd (ASX: TYR)

One of the worst ASX performers over November was the paymets company Tyro. Tyro Payments went from $4.04 a share on 29 October to finish up on 30 November at just $2.88. That’s a steep drop of 28.7%. This poor performance seemed to be precipitated by Tyro’s annual general meeting which the company held on 3 November.

It appears Tyro’s gross profit of $28.5 million for the year to 31 October (growth of 14%) wasn’t quite up to what investors were hoping for, considering the company delivered growth of 28% over FY2021. Subsequently, Tyro shares were also subject to some less-than-enthusiastic broker notes afterwards.

All of these factors combined to make Tyro one of the worst performing ASX shares on the entire share market over November.

The post Here are 6 of the worst performing ASX shares of November appeared first on The Motley Fool Australia.

More reading

• The Zip (ASX:Z1P) share price fell 20% in November and now trades at a 52-week low
• The Westpac (ASX:WBC) share price sank 20% in November: Time to buy?
• Morgans names 2 of the best ASX share ideas for December
• ASX shares to buy for the Omicron COVID outbreak
• What’s JP Morgan saying about ASX 200 bank shares?

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. owns shares of and has recommended AFTERPAY T FPO, Nearmap Ltd., PUSHPAY FPO NZX, Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Nearmap Ltd., and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Tyro Payments and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The leading S&P/ASX 200 Index (ASX: XJO) resource shares trounced the index in November.

While the ASX 200 struggled during the month, losing 0.9%, the 5 best performing ASX 200 resource shares delivered an average gain of 22.7%.

Let’s take a look at those top 5 performers now.

Which ASX 200 resource share was November’s top performer?

Leading the pack by several lengths was Nickel Mines Ltd (ASX: NIC).

The Nickel Mines share price ended November at $1.42, up a whopping 35% for the month. And this isn’t a junior miner we’re talking about here. The nickel producer has a market cap of some $3.6 billion.

Atop continuing strong demand for nickel, the company got a lift when it reported it was expanding its partnership with Shanghai Decent. The company also spurred investor interest when it reported the first production from its Angel Nickel project was coming in months ahead of schedule.

Coming in at No. 2

The second best ASX 200 resource share in November was Fortescue Metals Group Limited (ASX: FMG). The iron ore giant gained 22% for the month, closing at $17.01 per share.

Fortescue shares look to have rallied after months of decline on the back of falling iron ore prices. With both prices and the outlook for iron ore improving in November, Fortescue was a clear beneficiary.

And a very close third

With a share price gain of 21%, Lynas Rare Earths Ltd (ASX: LYC) comes in as the third-best ASX 200 resource share to own in November, ending the month at $8.87 per share.

As the world’s second-largest producer of rare earths, and the only significant producer outside China, Lynas has been attracting plenty of investor attention as the West moves to break China’s near-monopoly of rare earths production.

Lynas’ resource deposit in Mt Weld, Western Australia, is among the highest grade rare earths mines on the planet.

Investors are keeping a close eye on the lithium space

With the world marching rapidly towards electrification, investors are keeping a close eye on the resources required for the shift, with lithium chief among those.

ASX 200 resource share Pilbara Minerals Ltd (ASX: PLS) continued to benefit from that trend in November, with shares closing the month up 18.2% to $2.60 per share.

Pilbara’s Pilgangoora Lithium-Tantalum Project, located in Western Australia, is one of the largest hard-rock lithium-tantalum deposits in the world.

And the fifth best ASX 200 resource share?

Rounding out our list of top ASX 200 resource share performers in November is Mineral Resources Limited (ASX: MIN).

Mineral Resources closed the month up 17.3% at $45.26 per share. The company is also benefiting from the growing global demand and strong outlook for lithium. Mineral Resources is poised to become the largest lithium spodumene producer in Australia once its Wodgina project in Western Australia is restarted and up to full production.

The Mineral Resources share price received a final lift on 29 November when the company announced it’s entered into a port and rail agreement with Hancock Prospecting Ltd and Roy Hill Holdings Ltd.

The post 5 best ASX 200 resource shares to hold in November appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Thursday
• These were the 5 best performing ASX shares in November
• The Fortescue (ASX:FMG) share price hit by broker downgrade
• These 3 ASX 200 shares are topping the volume charts this Wednesday
• The Fortescue (ASX:FMG) share price jumped 22% 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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Strike Energy Ltd (ASX: STX) shares aren’t sparking up on Friday — instead, they’ve been plunged into a trading halt.

The oil and gas explorer and developer has frozen its shares as it prepares to make an announcement regarding its Walyering-5 well.

Right now, the Strike Energy share price is sitting at 15 cents.

Let’s take a closer look at what’s going on with the company on Friday.

Strike Energy share price freezes on Friday

The Strike Energy share price might be in for a wild ride as the company flags its planning to release drilling results from the Walyering-5 well.

The well is part of the Walyering wet-gas discovery, located in the Perth Basin. The discovery is owned by Strike Energy and Talon Energy Ltd (ASX: TPD), with the former holding a 55% interest.

Currently, appraisal drilling operations are underway at the well.

If another update is forthcoming, it will mark the third time in a fortnight that the company has released news on the operations.

On Monday, it announced the drilling had reached a final depth of 3,435 metres.

The operations are designed to test the updip potential of the Walyering wet-gas discovery, and hopefully restart the field’s development.

The company stated it has observed indications of the presence of gas at the well while drilling.

Strike Energy shares will recommence trading when the company releases its next announcement, or when the ASX opens on Tuesday, whichever comes sooner.

Understandably, investors are hoping for good news about the project, particularly as Strike has had a rough trot lately.

The Strike Energy share price has tumbled 16% over the past 30 days. It is also 48% lower than it was at the start of 2021.

The post Here’s why the Strike Energy (ASX:STX) share price isn’t cooking with gas today appeared first on The Motley Fool Australia.

More reading

• Why is the Strike Energy (ASX:STX) share price climbing today?

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

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

What happened

The stock market is having a fairly strong day on Thursday after a multiday slump caused by renewed COVID-19 fears. At 10:20 a.m. ET, the S&P 500 index was higher by about 0.6%. However, not all stocks were having a good day. Fintech giant Square (NYSE: SQ) was a major underperformer, its shares having declined by about 3.5%.

So what

There are two likely explanations for Square’s underperformance. First, it’s worth noting that the tech sector is one of the worst performers of the day. The tech-heavy Nasdaq is hovering around the flatline. So some of the underperformance can be attributed to sector weakness.

Second, and most significantly, Square announced on Wednesday afternoon that it is changing the company’s name to Block, effective Dec. 10. Once the change happens, the ticker symbol (SQ) will not change, and the seller business will retain the Square brand name.

Why is Square changing its name? The short answer is that it’s because Square’s offerings today are very different from the small business financial solutions on which the business was founded. Cash App and the TIDAL music platform are two examples. Block is intended to represent Square’s vision for the future — the company represents its different businesses as “building blocks,” and is also making a reference to blockchain, which is a major focus of co-founder and CEO Jack Dorsey.

It’s also worth noting that Square Crypto is changing its name to Spiral at the same time, a move designed to give the business its own unique identity within the company’s ecosystem.

Now what

The name change comes just days after Dorsey decided to step down from Twitter (NYSE: TWTR) and focus exclusively on Square. And based on today’s move, it doesn’t seem investors know quite what to make of it. It remains to be seen how much Square’s business focus will shift toward blockchain and other new efforts, but for now this appears to simply be a name change, like the one Google made when it became Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). 

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

The post Here’s why Square is down today while the stock market is rising appeared first on The Motley Fool Australia.

More reading

• Is Square stock a buy?
• Afterpay (ASX:APT) share price slides amid Square takeover delay
• Is the Afterpay (ASX:APT) Square takeover a done deal?
• What is the difference between buying Square and Afterpay (ASX:APT) shares?
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Matthew Frankel, CFP® owns shares of Square. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares) and Square. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. The benchmark index is currently up 0.2% to 7,239.9 points.

Here’s what is happening on the ASX 200 on Friday:

BHP shares rise on unification plans

The BHP Group Ltd (ASX: BHP) share price is pushing higher today after revealing that it will proceed with its unification. This will see BHP make its ASX listing the primary listing. The BHP Board believes unification is in the best interests of shareholders. It will result in a corporate structure that is simpler and more efficient, reduces duplication and streamlines BHP’s governance and internal processes.

CSL responds to acquisition speculation

The CSL Limited (ASX: CSL) share price is trading lower today after responding to speculation that is planning to acquire Swiss-based Vifor Pharma for ~$10 billion. The biotherapeutics giant said it regularly assesses strategic opportunities that can improve its business, improve the health of people around the world, and provide value to shareholders. But warned there is no certainty that any transaction will occur.

Transurban distribution declared

The Transurban Group (ASX: TCL) share price is pushing higher after declaring its distribution for the six months ending 31 December 2021. The toll road giant will be paying a distribution of 15 cents per stapled security. This is in line with the distribution it paid during the prior corresponding period.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the ALS Ltd (ASX: ALQ) share price with a 3% gain on no news. The worst performer has been the TPG Telecom Ltd (ASX: TPG) share price with a 6% decline. This follows news that founder David Teoh is selling down his holding.

The post ASX 200 (ASX:XJO) midday update: BHP higher on unification plans, TPG tumbles appeared first on The Motley Fool Australia.

More reading

• TPG (ASX:TPG) shares down 6% as founder sells $335m stake
• BHP (ASX:BHP) share price lifts as single listing gets green light
• You want an ASX share to hold for 4 years? Here are 2!
• 5 things to watch on the ASX 200 on Friday
• CSL (ASX:CSL) share price dips amid $10b acquisition rumours

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 CSL Ltd. The Motley Fool Australia has recommended TPG Telecom 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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The TPG Telecom Ltd (ASX: TPG) share price is in freefall on Friday morning as the market reacts to news about the telco’s founder David Teoh.

In the first hour of trade, the stock price had sunk 6% to go for $6.22.

The trigger for the sell-off seems to be founder David Teoh’s cashing in of 20% of his holding.

“Thursday evening saw Macquarie Group Ltd (ASX: MQG)’s equities desk seeking bids for a $335 million stake in TPG Telecom,” said Shaw and Partners portfolio manager James Gerrish in his Market Matters newsletter.

“The auction was offered between a 1.8% and 4.8% discount to Thursday’s close, which implies solid demand.”

‘More R&R’ for Teoh?

The current TPG Telecom was formed after a 2020 merger of the original TPG, founded by Teoh in 1986, and Vodafone Australia.

Earlier this year he stepped down from the board.

“This sale represents about 20% of his holding — perhaps there will be 4 more such sales over the coming years,” said Gerrish.

“The 66-year old billionaire might simply be deciding business is not exciting as it was or it’s time to have more R&R.”

In a statement to the ASX on Friday morning, TPG confirmed the sale had occurred and noted it was the maximum amount Teoh is allowed to sell right now.

“Mr David Teoh and his associates entered into an escrow agreement in June 2020 under which they must not dispose of, subject to certain exceptions, more than 20% of their aggregate shareholding in the company for a period of 24 months following implementation of the Scheme of Arrangement on 13 July 2020.”

Buy, sell or hold TPG shares?

So, if you’re holding TPG shares or are interested in buying, what do you do?

Gerrish believes Teoh’s actions don’t change the outlook on TPG.

“We don’t see it as a reason to abandon the stock or sector, as opposed [to] the sale being a logical progression through time.”

Telco shares have generally not fared well in recent years, and TPG is no exception. The TPG share price has dropped more than 28% since the merger.

“TPG now operates brands such as Vodafone, TPG, iiNet and Internode, making it a definite proxy to the general health of the Australian telco market,” said Gerrish.

“We feel the huge merger in 2020 should eventually see benefits but buying at a higher price after a decent FY22 report makes more sense in our opinion. i.e. Let’s see some runs on the board.”

He added that “synergistic benefits” often arrive later than what corporate boards expect.

“We see long term defensive value closer to the $6 area, with support likely from a fully franked yield which is likely to be in excess of 3%.”

The post TPG (ASX:TPG) shares down 6% as founder sells $335m stake appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of Macquarie Group 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 recommended Macquarie Group Limited and TPG Telecom 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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