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The Hannans Ltd (ASX: HNR) share price roared to life on Tuesday. This comes after the exploration company announced an update on the memorandum of understanding (MoU) with Critical Metals Ltd.

During afternoon trade, Hannans shares soared as high as 4.7 cents apiece — a 27% gain on their previous closing price. However, by the close, they had retreated to 4.2 cents, still a gain of 13.51%.

What did Hannans announce?

Investors were pushing up the Hannans share price following the company’s entry into the lithium battery recycling sector.

Hannans advised it has satisfied all the conditions precedent from the binding MoU agreement signed in September. This gives the company rights to recover high-purity metals from scrap and spent lithium batteries.

Hannans will seek to commercialise its battery recycling technology in Nordic countries Norway, Sweden, Denmark, and Finland.

The Nordics are known for having one of the highest electric vehicle adoption rates in the world. To fuel this growth, the region has four massive giga factories that are either in the planning stages or being built.

Hannans envisions the volume of scrap and end-of-life lithium batteries will drive the lithium battery recycling sector. It’s worth noting this waste contains significant nickel, cobalt, lithium, and manganese which are the company’s bread and butter.

The recycling technology is considered safe, sustainable, and uses low energy and emits low carbon emissions compared to other technologies. Hannans noted that it will begin to earn an interest in the recycling projects by funding and managing certain activities.

Hannans share price summary

Having reached a multi-year high of 5.5 cents earlier this month, the Hannans share price retraced back. Its shares are hovering above a 500% gain for the last 12 months, and are up 750% for the current year.

Hannans commands a market capitalisation of roughly $117.28 billion, and has approximately 2.06 billion shares on issue.

The post Here’s why the Hannans (ASX:HNR) share price shot 14% higher today appeared first on The Motley Fool Australia.

More reading

• Why is the Creso Pharma (ASX:CPH) share price frozen today?
• Here are the top 10 ASX shares today
• Is something big about to go down with Origin Energy (ASX:ORG) shares?
• How did the Aussie crypto miners ETF fare during its first month?
• Here’s why the Talga share price plunged 18% on Tuesday

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

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The All Ordinaries Index (ASX: XAO) enjoyed a very pleasing day of gains on Tuesday. The All Ords finished the day up 0.33% at 7,587.4 points. But one ASX share wasn’t even trading today. That would be the Creso Pharma Ltd (ASX: CPH) share price.

Creso Pharma shares closed at a share price of 9.6 cents yesterday afternoon. And that’s where they will be staying, at least for a while.

That’s because Creso Pharma announced that it has requested a trading halt, effective this morning. The company has said that this precedes it “releasing an announcement”, with the shares to remain halted until this announcement is made public, or until 2 December (Thursday this week).

And that’s all we know for now.

Creso shares notch third ASX trading halt for November

But this isn’t Creso’s first rodeo, as it were. This ASX cannabis share was also placed in a trading halt just last week on 23 November. Before that, there was another halt, that one on 16 November.

The latter was sparked by an ASX ‘speeding ticket’ after the company fell more than 9% that day. My Fool colleague Mitchell dived deeper into this at the time.

The former halt was initiated in order for the company to inform investors that the Australian Securities and Investments Commission (ASIC) had requested Creso to “produce certain documents to ASIC in connection with an ASIC investigation”.

This notice also informed the market that “ASIC’s investigation includes suspected contraventions by the Company [Creso], its officers, agents, employees and representatives in relation to trading in its securities”. Creso stressed that “it should not be construed as an indication by ASIC that a contravention of the law has occurred, nor should it be considered a reflection upon any person or entity”.

So today’s announcement means that it is the third such trading halt Creso has experienced over just the month of November.

Given that the last two halts didn’t contain much in the way of good news, shareholders will likely be nervously awaiting what the company has to say next.

Until then, it doesn’t look like the Creso share price will be available for public trading.

The post Why is the Creso Pharma (ASX:CPH) share price frozen today? appeared first on The Motley Fool Australia.

More reading

• Why Creso Pharma, Hansen, Life360, and Serko shares are falling
• Creso Pharma (ASX:CPH) share price down 7% as chair stands aside amid ASIC probe
• Why the Creso Pharma (ASX:CPH) share price is down 29% this week
• Creso Pharma (ASX:CPH) share price down 6% after speeding ticket
• Why the Creso Pharma (ASX:CPH) share price fell 9% before freezing

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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Today, the S&P/ASX 200 Index (ASX: XJO) partially bounced back from yesterday’s Omicron-induced panic. At the end of the session, the benchmark index finished 0.22% higher to 7,256 points.

The gains were far-reaching across the Aussie market today. Out of all of the sectors, only one finished in the negative. For reference, the one sector failing to gain momentum was utilities. Meanwhile, the strongest performers could be found in communication services and tech.

The question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Novonix Ltd (ASX: NVX) was the biggest gainer today. Shares in the battery technology company rallied 10.95% today. The positive session followed Novonix’s annual general meeting (AGM). Find out more about Novonix here.

The next biggest gaining ASX share today was Orocobre Ltd (ASX: ORE). The lithium miner’s shares jumped 8.34% to $10.26 following the company’s AGM, where a bullish outlook on lithium prices was conveyed. Uncover the latest Orocobre details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Novonix Ltd (ASX: NVX)	$12.16	10.95%
Orocobre Ltd (ASX: ORE)	$10.26	8.34%
Imugene Ltd (ASX: IMU)	$0.54	5.88%
Uniti Group Ltd (ASX: UWL)	$4.35	5.84%
Webjet Ltd (ASX: WEB)	$5.48	5.39%
Corporate Travel Management Ltd (ASX: CTD)	$22.22	5.26%
Flight Centre Travel Group Ltd (ASX: FLT)	$17.82	4.89%
AMP Ltd (ASX: AMP)	$1.0525	4.73%
Lynas Rare Earths Ltd (ASX: LYC)	$8.89	4.59%
Incitec Pivot Ltd (ASX: IPL)	$3.20	4.58%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far
• These are the ASX 200 shares that fundies have been snapping up
• Why AMP, Collins Foods, Credit Corp, and Orocobre shares are charging higher
• ASX 200 (ASX:XJO) midday update: AMP shares jump, Collins Foods impresses
• Why the Orocobre (ASX:ORE) share price is up 6% to a record high today

Motley Fool contributor Mitchell Lawler owns shares of Lynas Corporation 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 Corporate Travel Management Limited, Flight Centre Travel Group Limited, Uniti 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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The Origin Energy Ltd (ASX: ORG) share price weakened in afternoon trade, finishing the day down 2.44% to $4.80.

It comes amid reports the energy giant has decided to cancel its investor day, which was scheduled for next month.

While a formal announcement has not been made by Origin, the news might be sparking some questions.

Sparking speculation

Investors put downwards pressure on the Origin Energy share price today. This is despite there being no announcements posted by the S&P/ASX 200 Index (ASX: XJO) energy company.

However, The Australian has suggested Origin Energy has cancelled its upcoming investor day. As a result, onlookers could be wondering what would prompt such action. One query, in particular, is whether there could be a major shift in strategy planned.

For example, some market participants are asking if Origin could be on the table for another big oil and gas deal. This comes at a time when megadeals are being executed left, right, and centre.

Examples of these include the $23 billion merger of Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO). Another is Woodside Petroleum Limited (ASX: WPL) and the oil assets of BHP Group Ltd (ASX: BHP).

Specifically, some investors are wondering whether the company could be mulling the sale of its energy retail business. Any sale would be eyebrow-raising considering it was only last month the company executed an agreement to sell a 10% interest in Australia Pacific LNG worth $2.12 billion.

Origin Energy share price snapshot

While the Origin Energy share price has diverted a negative return in 2021 so far, it is still less than spectacular. Having gained 0.5% since the year commenced, Origin shares are underperforming the benchmark index by around 8%.

Unlike many other ASX-listed shares, the Origin Energy share price is still a long way off its pre-COVID levels. Prior to the market crash in March 2020, the energy retailer was fetching a price of around $8.74.

Finally, the company currently holds a market capitalisation of $8.56 billion.

The post Is something big about to go down with Origin Energy (ASX:ORG) shares? appeared first on The Motley Fool Australia.

More reading

• Why is the Origin (ASX:ORG) share price outperforming AGL in November?
• Here’s why the Origin (ASX:ORG) share price has outperformed the ASX 200 over the last 3 months?
• These ASX 200 shares could be set to face fresh pressure over climate action
• Why is the AGL (ASX:AGL) share price underperforming Origin lately?
• The top performing ASX 200 energy shares in October unmasked

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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It’s been just over a month since investors woke up to a brand new, crypto-themed exchange-traded fund (ETF) trading on the Australian markets.

The Cosmos Global Digital Miners Access ETF (DIGA) commenced trading on the ASIC-regulated Aussie exchange Chi-X on 28 October. (You can find our coverage following its first day of trading here.)

Now DIGA doesn’t invest directly into Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), or any of the other range of altcoins with growth potential. No Australian-listed ETFs have been given the green light by regulators to do so yet.

Instead, DIGA gives investors exposure to the crypto world via a basket of cryptocurrency mining and infrastructure companies.

With DIGA now entering its second month of trading, the Motley Fool reached out to Dan Annan, CEO of Cosmos Asset Management, for his insights into this rapidly evolving market.

Below you’ll find part 1 of that interview.

Motley Fool: What was the market’s reaction to DIGA in its first week of trading?

Dan Annan: The feedback from DIGA’s debut was very positive. The market was impressed with the product design, in that the fund focused on the ETF benefits of liquidity, diversification, and access to the crypto asset class without diluting the cryptocurrency asset class exposure.

Cosmos designed a robust product to give investors the closest exposure to the digital currency asset class without sacrificing liquidity. And it was exciting for the team to see the market reception and intrigue in DIGA.

The objective of DIGA is to track the Global Digital Miners Index.  The index is designed to provide access to the picks and shovels of companies listed globally on national stock exchanges, with the primary business focused on crypto mining and infrastructure.

MF: What do you see driving the increased demand and broader institutional adoption of cryptos like Bitcoin?

DA: One of the great mysteries of modern life is the time it still takes for international money transfers to clear and settle. Every other aspect of our lives is increasingly digital, reduced to a tap of your phone or the press of a key. But money transfers take days to rumble from the payee to the original bank. That’s days of lost opportunity and plenty of fees for the intermediaries passing them around behind the scenes.

Bitcoin and crypto more broadly has been the breakthrough. And it has only started getting institutional support globally since last year. Bitcoin allows for a true digital store of value and transfer. Transactions can be done natively digital in a way that is fast, limitless, secure, and transparent.

MF: How has DIGA performed since launching on 28 October?

DA: From a timing perspective, Bitcoin rallied right around the launch of DIGA on 28 October, which by its design brings a 0.75 correlation to Bitcoin. So we saw DIGA break records for its first 5-day performance debut over all ETFs to list in the Australian market over the past 5 years, delivering 25% returns.

That 25% return is measured by the fund’s NAV [net asset value], with the opening NAV at 4.9977 on 28 October and a closing NAV of 6.2454 on 5 of November. This performance broke the record for all ETFs to debut in the Australian market over the past 5 years.

MF: What kind of volatility can investors expect in a crypto ETF like DIGA?

DA: The objective of DIGA is to deliver access to the outsized returns we are seeing in the crypto asset class.  That said, investors should have a long-term view to withstand the daily volatility this asset class presents.

Month-to-date, as at 25 November, DIGA is among the top-performing ETFs in the Australian market. It’s delivered more than a 20% return since inception [as at 25 November] as measured by NAV, with an opening NAV of 4.9977 on 28 October and a closing NAV of 6.1561 on 25 November.

MF: Why did you opt for a Chi-X listing?

DA: What many investors aren’t aware of is that both exchanges, the ASX and Chi-X, are top tier 1 licensed stocked exchanges. Chi-X is owned by Chicago Options Board Exchange, which is the largest ETF listing venue in the US.

Chi-X, for example, makes up about 20% of equity trading and more than 35% of fund trading in Australia. The fact is, if you’ve bought a BHP share or units in STW in the last 10 years, you’ve probably already traded on Chi-X and didn’t realise it.

With that said, we liked the innovation Chi-X brings to the table to work with start-ups like Cosmos, and we took the opportunity to work with them on DIGA. We liked the prospect of working with a platform that was open to our innovative ideas in the crypto asset class.

MF: What criteria do you look for in crypto mining and infrastructure companies before adding them, removing them, or adjusting their weighting within the ETF?

DA: The index methodology for the Global Digital Miners Index (GDMI) is clean and clear with transparent rules to consider.

These include:

• Companies listed on global national exchanges;
• Companies with a minimum market cap of US$100 million;
• Companies that generate at least 80% of their revenue from crypto mining and infrastructure; and
• Companies with median daily trading volume exceeding than US$1 million.

The index follows a free-float adjusted market capitalisation weighted methodology, and it’s rebalanced on a monthly basis. For diversification purposes, no single stock may have a weight greater than 15% as of the rebalance date.

DIGA’s objective is to replicate the Global Digital Miners Index, and we are very proud of how the team has been tracking the index thus far.

**

(Tune in tomorrow for part 2 of our interview with Dan Annan. You can find out more about DIGA here.)

The post How did the Aussie crypto miners ETF fare during its first month? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Talga share price plunged 18% on Tuesday
• Here’s why ASX retail shares are in the spotlight on Tuesday
• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far
• Are Nanosonics (ASX:NAN) shares a buy? Here’s what Motley Fool analyst Andrew Legget says
• IOUpay (ASX:IOU) share price halted amid acquisition news

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 battery anode and advanced materials company Talga Group Ltd (ASX: TLG) were very much out of favour with investors today.

By the market’s close, the Talga share price had tumbled 17.78% to $1.48. Investors responded negatively to an update provided by the company on the ASX this morning.

What was weighing on the Talga share price?

Talga shares are copping a caning after the company revealed its formal letter of intent with Mitsui & Co. Europe and Swedish mining company Luossavaara-Kiirunavaraa Aktiebolag (LKAB) has now lapsed.

Talga was hoping to partner with LKAB and Mitsui on the development of its green anode project for use in producing lithium-ion batteries.

This would include construction of a scalable, 19,000-tonnes-per-annum anode production facility and integrated graphite mining operation in northern Sweden.

The project would be situated close to the Nunasvaara deposit, said to be the highest-grade graphite deposit in the world.

Is there still hope for the venture?

Whilst no further details about the venture’s prospects have yet been provided, Talga did reveal it will continue advancing project development discussions with Mitsui under the existing Memorandum of Understanding.

Talga is using its 100%-owned mineral and technology assets in northern Sweden to establish a European supply of sustainable, low-CO₂-emission anode materials.

The company said it will continue to pursue current and new financing and partnership opportunities emerging from the strong global demand outlook for green-battery anode.

Foolish takeaway

The Talga share price has had a rocky twelve months, having fallen by around 23% over the past year. The company’s shares reached a 52-week low of $1.13 on 5 March this year.

Talga shares have been volatile in November, climbing by over 45% from $1.50 at the end of October to $2.20 by 9 November. Unfortunately, from then on, it has been largely downhill for Talga shares, which have since fallen by more than 30% to back below October’s closing price.

The post Here’s why the Talga share price plunged 18% on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why Nuix, Resolute, Talga, and Vection shares are falling today
• Talga (ASX:TLG) share price leaps 7% on EV anode facility update
• Talga (ASX:TLG) share price loses charge after new battery deal
• Why the Talga (ASX:TLG) share price is charging 10% higher today

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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Market watchers might want to keep an eye on ASX retail shares as Black Friday proves to be a hit and talk of mergers and acquisitions heat up.

Here’s what you need to know about the record-breaking retail event and the potential outlook for the sector.

Black Friday proves fruitful

ASX retail shares rejoice, between the start of Black Friday and the end of Cyber Monday, Australians spent an estimated $8 billion on retail purchases, according to National Australia Bank Ltd (ASX: NAB).

That’s up to 8% more than 2019’s pre-pandemic record Black Friday weekend spend.

The bank analysed merchant transactions to come up with the estimate, which it released today. NAB noted the findings are a “clear boost for Australian business”.

The strongest bricks-and-mortar performers? Technology and shoes.

Tech sales were up 168% compared to the Black Friday weekend of 2019, while shoe stores saw sales increase 92%.

Meanwhile, consumers flocked online to purchase jewellery. Online stores for shiny things and wearable timepieces saw 312% more sales than they did over 2019’s Black Friday weekend.

NAB Business and Private Bank group executive, Andrew Irvine commented on the retail event’s popularity, saying:

It may be a trend adopted from our American friends, but it’s clear that Black Friday and Cyber Monday are now a strong part of the sales calendar here in Australia.

Sadly, boosted sales didn’t automatically equate to share price increases.

The share price of shoe retailer Accent Group Ltd (ASX: AX1) ended Cyber Monday 1.9% lower than it was at Thursday’s close. Meanwhile, that of jewellery merchant Lovisa Holdings Ltd (ASX: LOV) slipped 5.1%.

Though, technology retailer JB Hi-Hi Limited (ASX: JBH) has seen its share price gain 0.3% over same time frame.

Is the ASX retail sector set for an M&A flood?                         

And the skies ahead might be even more blue (or green) for ASX retail shares.

According to reporting by The Australian, experts believe the sector is rife for mergers and acquisitions.

They reportedly stated happenings like Adairs Ltd‘s (ASX: ADH) recent $80 million purchase of Focus on Furniture might be the new norm, as retailers scramble to make acquisitions to boost future growth.

Additionally, the publication claims some experts point to the recently accepted takeover offer for Australian Pharmaceutical Industries Ltd (ASX: API) – posed by Wesfarmers Ltd (ASX: WES) – as the start of a new trend.

Such a trend could see retailers branching into complimentary spaces to generate more consumer spending.

The publication also claims Universal Store Holdings Ltd (ASX: UNI) and Accent Group recently looked to get in on the acquisition action. They were reported on board to purchase General Pants.

Finally, according to The Australian‘s experts, acquisition-hungry investors might want to keep an eye on JB Hi-Fi and Super Retail Group Ltd (ASX: SUL). The latter’s brands, Super Cheap Auto, Rebel, and Macpac, are said to be on the hunt for acquisitions or mergers.

The Motley Fool Australia reached out to Universal Store and Accent Group for comment but didn’t receive an immediate response.

The post Here’s why ASX retail shares are in the spotlight on Tuesday appeared first on The Motley Fool Australia.

More reading

• Is the Adairs (ASX:ADH) share price a buy following the company’s latest acquisition?
• Leading brokers name 3 ASX shares to buy today
• Top brokers name 3 ASX shares to buy next week
• 2 excellent ASX dividend shares to buy next week
• 2 ASX dividend shares expected to pay BIG income

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 ADAIRS FPO and Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO, Super Retail Group Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Accent Group. 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 S&P/ASX 200 Index (ASX: XJO) has shaken off yesterday’s nasty fall and is currently enjoying some gains so far this Tuesday. At the time of writing, the ASX 200 is up by a healthy 0.99% at 7,312 points.

But let’s dive a little deeper and check out the ASX 200 shares that are currently topping the ASX trading volume charts so far today, according to investing.com.

3 most active ASX 200 shares by volume this Tuesday

Telstra Corporation Ltd (ASX: TLS)

Blue chip telco Telstra is our first ASX 200 share with high trading volumes today. Thus far, Telstra has seen a hefty 17.6 million of its shares swap hands.

With no news out of this telco today, this volume can probably be put down to the nice share price bump Telstra has experienced today. Telstra shares are currently up a robust 1.5% at $4.06 each. Together with Telstra’s ongoing on-market share buybacks, this is the likely cause behind this elevated trading volume.

AMP Ltd (ASX: AMP)

AMP is our next ASX 200 share up this Tuesday. This embattled wealth manager and bank has had 22.65 million shares find new owners on the markets so far today. This could be put down to the market update AMP gave its investors this morning.

In this, AMP told investors that it is making strong progress with its Private Markets demerger. Amid this update, AMP shares are currently up a very pleasing 5.97% at $1.06 a share. This has probably sparked the high trading volumes we are seeing with this ASX 200 company today.

Pilbara Minerals Ltd (ASX: PLS)

Yet again, Pilbara Minerals tops the ASX 200 most traded shares list, at least so far today. The lithium producer has seen a whopping 26.16 million of its shares bought and sold so far this Tuesday.

With no news out of this company as well, we can probably put this elevated volume down to the chunky share price gains Pilbara is enjoying so far today. Pilbara is currently up 4% at $2.60 a share. It’s this big jump in valuation that is likely ensuring Pilbara’s gold medal for trading volumes this Tuesday.

The post Here are the 3 heaviest traded ASX 200 shares on Tuesday so far appeared first on The Motley Fool Australia.

More reading

• These are the ASX 200 shares that fundies have been snapping up
• Why AMP, Collins Foods, Credit Corp, and Orocobre shares are charging higher
• ASX 200 (ASX:XJO) midday update: AMP shares jump, Collins Foods impresses
• Why is the Aussie Broadband (ASX:ABB) share price soaring today?
• Here’s why the iron ore price is in the spotlight today

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation 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 owns shares of and has recommended Telstra Corporation 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 Nanosonics Ltd (ASX: NAN) share price has failed to deliver a positive return for shareholders so far this year.

With hospitals inundated globally as a result of the COVID-19 pandemic, the infection technology company has struggled to promote its patented Trophon product. Despite this, the investing team at The Motley Fool Australia thinks there’s a lot to like about the business, making it a compelling opportunity.

In a discussion between Motley Fool Australia analyst Andrew Legget and our chief investment officer Scott Phillips, the COVID-19 headwind could be set to morph into a long-term tailwind for the infection technology company.

Let’s jump into the reasoning behind a positive outlook for Nanosonics shares on the ASX.

Renewed emphasis on sterilisation could help Nanosonics shares

While restrictions on surgical procedures may have impacted the performance of Nanosonics on the ASX in recent years, the outlook could be starting to shift. An indication of this is the company’s forecast for double-digit revenue growth in FY2022.

This increase would be from a higher number of installed devices and an uptick in consumables used across all regions — but where is this demand coming from?

Motley Fool analyst Andrew Legget recently offered an explanation, saying:

Hospitals have been busy, you’ve probably got all these COVID-related things to look after in the middle of a pandemic, the last thing you want to do is speak to a salesperson offering you an ultrasound disinfectant machine. But, I do expect that even the COVID pandemic will help in the long term because it did place a lot of focus on sterilisation.

A heightened focus on sterilisation might act as a catalyst to drive further Trophon sales. The major positive is that this phenomenon is global. Rather than one country seeing an increased need for disinfection protocols, it is essentially the entire world.

Attractive business model

In laying out the investment case for Nanosonics shares, Legget highlights the lucrative business model. It’s called the razor and blade model, and we’ve all likely fallen for it before. Legget explains:

You sell the device really cheap. Then once that device is installed and part of the process, then you open up the rivers of gold. Which are these consumable devices, which have extremely high margins. Every time you do a procedure that requires the usage of a Trophon device, you’re paying for a consumerable liquid that has really high margins.

Another bullish trait of the ASX-listed Nanosonics story is its position in the market. The company’s current installed base of devices is 26,760. However, management believes the market could be more than 100,000 machines.

On this note, Legget comments on the competition within the industry, saying:

I’ve had a look… it’s not easy to find competitors to what Nanosonics does. Also, the ones that you do find are not as complete a solution as what Nanosonics does. Nanonsonics, I said before, it is the gold standard.

In summary, Legget considers Nanosonics shares a beneficiary of increased importance on disinfection. The combination of its lucrative business model and lack of competition presents an opportunity for a very strong business.

The opinions expressed in this article were as at November 2021 and may change over time.

The post Are Nanosonics (ASX:NAN) shares a buy? Here’s what Motley Fool analyst Andrew Legget says appeared first on The Motley Fool Australia.

More reading

• Why Nanosonics, WiseTech, and Zip shares are dropping
• Nanosonics (ASX:NAN) share price tumbles despite guiding to strong growth at AGM
• 5 things to watch on the ASX 200 on Friday
• 10 top ASX shares to buy in November
• Top ASX shares to buy in November 2021

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 Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics 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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Shares in fintech and digital commerce company IOUpay Ltd (ASX: IOU) are sat in limbo at the time of writing amid a company-requested trading halt.

Before it was put on the back-burner, the IOU share price was set to open at 18.5 cents, a slight gain from last week’s close.

Let’s take a closer look.

Why is the IOU share price halted?

The company requested a trading halt to be put in place on its shares today, in relation to the acquisition of a 42% interest in I.Destinasi Sdn Bhd (IDSB). IDSB is a provider of consumer credit services in Malaysia.

The trading halt is requested to be in place until the commencement of trade on 2 December 2021 or when that announcement is released to the market.

IOU previously announced the acquisition back in September, where it penned a letter to investors outlining the particulars.

It is set to acquire the interest on a $41.3 million consideration finalised over 2 tranches in a 6-month period. A contingency in the deal could allow IOU to acquire IDSB for less if its pre-tax profit is less than $9.8 million for FY21.

IOU will finance the transaction on an all-cash consideration that will be completed in 50% lots, pursuant with the 2 tranches outlined above.

In a separate release last week, the company also advised that it was waiting for consent from one of IDSB’s banking partners to finalise the acquisition. It appears this may have been finalised judging by IOU’s language today, but the company is yet to confirm in full.

Today’s announcement builds on momentum after the company released its operations update last week. In that report, IOU recognised $3.2 million in total transaction value (TTV) whilst growing its consumer downloads by 67% since September 30.

The company’s operations in Malaysia is performing, securing over 100 merchants operating more than 300 outlets to the myIOU platform during this quarter so far.

It has also deployed staff to grow its base in regional areas outside of the Klang Valley central economic hub which is by Kuala Lumpur and Selangor.

There has been no movement on this update since the ASX announced the trading halt earlier in the session on Tuesday.

IOU share price snapshot

In the last 12 months, the IOU share price has gained almost 9% after rallying another 12% this year to date.

Despite this, it has fallen 26%% in the last month and has collapsed a further 12% this past week alone.

The post IOUpay (ASX:IOU) share price halted amid acquisition news appeared first on The Motley Fool Australia.

More reading

• Why is the IOUpay (ASX:IOU) share price tumbling 7% on Tuesday?

The author has no positions 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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