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The Ausnet Services Ltd (ASX: AST) share price has been one of the top performers in the S&P/ASX 200 Index (ASX: XJO) in September. Shares in the Aussie electricity transmission network provider have rocketed 32% higher so far this month.

Let’s take a look at what’s driving the energy infrastructure group’s valuation to new heights right now.

Why the Ausnet share price has surged 32% in September

Prior to this month, shares in the Aussie company had largely traded between $1.60 and $2 per share for most of the year. However, that all changed on Monday 20 September.

The Ausnet share price rocketed 19.2% higher in the space of one day. The reason? A juicy takeover offer from the world’s largest alternative asset manager, Brookfield Asset Management.

Brookfield and associated entities lobbed an offer to acquire 100% of Ausnet shares for $2.50 per share. That represented a 26% premium to Ausnet’s closing price on Friday 17 September and a 35% premium to its 30-day weighted average share price.

The unsolicited, indicative, non-binding and conditional proposal sent the Ausnet share price soaring. The revised proposal followed previous bids from Brookfield at $2.35 per share and $2.45 per share.

Ausnet’s market capitalisation has swelled to $9.80 billion following the recent takeover bids. It was pushed even higher when news broke of APA Group‘s (ASX: APA) interest.

The rival electricity distributor one-upped Brookfield’s bid with a $2.60 per share conditional offer of its own. The ensuing bidding war between the two groups, including complaints from APA about an exclusivity agreement between Ausnet and Brookfield, has pushed the Ausnet share price higher in September.

Shares in the network infrastructure group have been soaring higher and amongst the ASX 200’s top performers this month.

The post Why the Ausnet (ASX:AST) share price has surged 32% in September appeared first on The Motley Fool Australia.

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• APA Group (ASX:APA) share price jumps on strong support for its takeover bid
• Why the Transurban (ASX:TCL) share price just got upgraded by a leading broker
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Motley Fool contributor Ken Hall 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 APA 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 Wesfarmers Ltd (ASX: WES) share price is gaining today after the Australian Competition and Consumer Commission declared it won’t oppose Bunnings’ acquisition of Beaumont Tiles.

The competition watchdog has found the acquisition proposed by Bunnings – a subsidiary of Wesfarmers ­– won’t significantly decrease competition among Australian tile retailers.

At the time of writing, the Wesfarmers share price is $55.70, 0.7% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 1.4% today. The All Ordinaries Index (ASX: XAO) is also up 1.3%.

Let’s take a closer look at today’s announcement from the ACCC.

Bunnings’ acquisition gets the go ahead

The Wesfarmers share price is in the green amid news the ACCC won’t stop Bunnings from acquiring Beaumont Tiles.

The watchdog noted that Bunnings doesn’t currently have a large presence in tile sales in Australia.

However, it did warn it will pay particularly close attention to any further acquisitions the home improvement and lifestyle retailer might make.

Wesfarmers announced in April that Bunnings planned to purchase the speciality tile retailer. The Wesfarmers share price gained 1.1% on the day the news was released.

Following the acquisition, the two businesses will operate separately with the current Beaumont Tiles management to continue in their roles.

How much the home improvement giant will pay for Beaumont Tiles hasn’t been disclosed.

ACCC commentary 

Commenting on the acquisition, ACCC chair Rod Sims said:

Specialist tile retailers have a far more extensive range [than Bunnings], displayed in dedicated tile showrooms with specialist staff who can provide design and product advice to customers and referrals to tilers…

By contrast, Bunnings generally sells small volumes of tiles in-store to Do-It-Yourself customers, and tilers, and other trades people undertaking small jobs…

Stronger competition may pose challenges for some tile retailers, but it is unlikely to lead to a substantial lessening of competition in this market.

Beaumont Tiles has more than 110 retail locations in Australia, whereas Bunnings has more than 300 stores nationwide.

Wesfarmers share price snapshot

Today’s boost included, the Wesfarmers share price has gained 8% year to date. It is also 25% higher than it was this time last year.

The post Wesfarmers (ASX:WES) share price gains as ACCC approves Bunnings acquisition appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.45% to 7,300.9 points.

Four ASX shares that have failed to follow the market higher are listed below. Here’s why they are dropping:

BlueBet Holdings Ltd (ASX: BBT)

The Bluebet share price is down almost 3% to $1.85. This sports betting company’s shares have come under significant pressure this month amid concerns over its US expansion. This follows a couple of unsuccessful state betting license applications. Investors appear concerned that cracking the US market may be harder than anticipated.

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price has fallen 2.5% to $1.17. This morning the team at Macquarie released a broker note relating to this gold miner. Although it has retained its outperform rating, it has cut its price target on Gold Road’s shares by 6.5% to $1.40. It notes that issues at its Gruyere operation are impacting production.

Li-S Energy Ltd (ASX: LIS)

The Li-S Energy share price has tumbled 9.5% to $2.18. This decline appears to have been driven by profit taking from investors after a significant gain following its IPO. The battery technology company’s shares are still up 155% since hitting the ASX boards on Tuesday. Li-S Energy raised $34 million at 85 cents per share.

Myer Holdings Ltd (ASX: MYR)

The Myer share price has fallen 6.5% to 58.5 cents. As with Li-S Energy, this decline appears to have been driven by profit taking from investors. For example, even after this decline, the Myer share price is up approximately 90% since the start of the year. A strong turnaround in the department store operator’s performance is behind this gain.

The post Why BlueBet, Gold Road, Li-S Energy, & Myer shares are dropping appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BlueBet Holdings 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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Magellan Financial Group Ltd (ASX: MFG) shares are an easy way for investors to get diversified exposure on the ASX. Magellan is an Aussie investment manager that focuses on global equities and global listed infrastructure.

Those are not necessarily the easiest asset classes to invest in for the average Joe. However, investors might be curious as to what actually underpins their Magellan investments.

Here’s a look at what the Aussie investments group is actually holding right now.

Magellan’s Funds

Magellan has a number of different investment strategies and vehicles that it uses within its Global Equities strategy. For instance, there is the listed Magellan Global Fund Closed Class (ASX: MGF) which targets a cash yield of 4% per annum across 20-40 companies.

Magellan also has exposures across its direct-investment vehicles such as the Magellan Global Fund (Hedged) and Magellan High Conviction Fund.

In Global Infrastructure, there is the direct-investment Magellan Infrastructure Fund, as well as the listed Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) (ASX: MICH).

Investors purchasing Magellan shares are essentially getting a look through exposure to these diversified strategies.

What are you investing in with Magellan shares?

Magellan shares have been struggling in 2021 even as global markets have been climbing higher. So, what’s driving the difference?

Some of the reasons have been to do with Magellan’s own investors. Investing in Magellan as a listed investment company means investors are getting exposure to factors affecting the business, over and above just the pure investment performance.

For instance, Magellan shares were under pressure yesterday as reports emerged of a key institutional investor’s review of the Magellan mandate.

Leaving aside business issues to one side, investors would be keen to know some of the key holdings underpinning their Magellan investment aside from stakes in the underlying investment vehicles.

There have been some significant recent investments from the Aussie group. These include taking sizeable stakes in FinClear, Mexican fast food chain Guzman y Gomez, and investment banking upstart Barrenjoey Capital Partners.

While Magellan shares are struggling right now, investors will be hoping the pivot towards these strategic stakes can help drive future growth for the investment manager.

The post Own Magellan (ASX:MFG) shares? Here’s what you’re invested in appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Magellan Infrastructure Fund. 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 American Pacific Borates Ltd (ASX: ABR) share price is leaping 8% after a project update from the borate miner.

What did American Pacific Borates announce?

The Aussie resources group told the market it has signed a second non-binding letter of intent (LOI) with the US-based group Borman Speciality Materials to supply boron specialty advanced materials.

The LOI supports targeted first production of materials at ABR’s small-scale boron facility in the second half of CY2022.

Borman produces a wide range of global specialty products for many markets. These include the semiconductor, life sciences, aerospace, military and automotive markets.

Today’s LOI brings a potential partnership involving ABR’s Fort Cady Integrated Boron Facility in southern California a step closer.

The company’s website says the Californian mine hosts “a multi-generational borate resource where boric acid, borate speciality materials, gypsum and potassium sulfate (SOP) will be produced for the global market”.

ABR CEO Henri Tausch said:

We look forward to working with Borman Speciality Materials who have over 80 years operating experience in global markets, on the potential to supply speciality boron advanced materials that will be produced for critical future facing applications.

With partners now engaged for our planned SOP and Borates products, and with increasing favourable market conditions, the Company is fast moving towards initial production of boron specialty advanced materials from its small-scale boron facility in FY2022.

It’s not just the CEO who is excited by today’s announcement. The ABR share price is leaping higher and is one of the better performers on the ASX today.

Foolish takeaway

The news has clearly impressed shareholders with the ABR share price rocketing on Thursday.

Shares in the resources group are now slightly above where they started the year.

ABR shares are changing hands for $1.54 today compared to $1.50 on 4 January.

The post American Pacific Borates (ASX:ABR) share price leaps 8% on project update appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 Bapcor Ltd (ASX: BAP) share price could be a good one to focus on, with possible growth potential.

If you haven’t heard of Bapcor, it is a large auto parts business in Australia, New Zealand and, increasingly, Asia. It has numerous brands including Burson and Autobarn.

There may be a few good reasons to consider the company for the long-term at the current Bapcor share price:

Store network rollout

The company has over 1,000 locations across Australia, New Zealand and Thailand. Expanding this number is key part of the future plans to drive profit.

At June 2021, it had 200 Bapcor Trade locations. It’s wanting to expand this by another 10 to 12 per annum, whilst also relocating or refurbishing another five or six stores per year.

Bapcor New Zealand had 73 locations at June 2021. Management wants to add two to three locations per annum, whilst also relocating or refurbishing another three to five stores per year.

Within the retail segment, it has 133 Autobarns and wants to increase that number by around 12 per year, whilst relocating or refurbishing another eight stores per annum.

Looking at its specialist wholesale segment, it has 17 light commercial locations, 32 heavy commercial locations and 17 electrical locations. For each of those, it wants to add another five locations per year.

When added to same store sales growth, a bigger store network can help the bottom line quite a bit. In FY21, Bapcor Trade saw same store sales growth of 14.3%, whilst Autobarn saw same store sales growth of 22.2%.

It’s also expanding in Asia with Burson in Thailand and its investment in Tye Soon.

Growing profit margins

Higher profit margins are what allows a business to grow profit faster than revenue. Investors often like to use profit as a way to measure what the Bapcor share price should trade at.

There are a number of different areas that Bapcor is working on to improve margins.

One is the scale benefits of being a large business and having a bigger network. That comes with fixed costs being shared among more locations, as well as stronger buying power with suppliers.

The ASX share is looking to grow profit by supplementing its sales with Bapcor own brand products, which comes with higher margins.

It’s investing in its supply chain, such as its new Victorian distribution centre. Bapcor is also working on a Queensland distribution centre as well. The company has also been looking to improve its transportation and inventory management as well.

In FY21, Bapcor saw its different profit levels rise faster than revenue. Total revenue increased 20.4% to $1.76 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 28.8% to $280 million, earnings before interest and tax (EBIT) increased 39% to $201 million and net profit after tax (NPAT) grew 46.5% to $130 million.

Bapcor share price valuation

One reason that investors may like Bapcor is the valuation.

At the current Bapcor share price, it is valued at around 20x FY22’s estimated earnings.

Looking further ahead, the Bapcor shares are priced at 18x FY23’s estimated earnings.

The post 3 reasons why the Bapcor (ASX:BAP) share price could be a buy appeared first on The Motley Fool Australia.

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

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S&P/ASX 200 Index (ASX: XJO) energy shares are on the move this morning. Shares in some of the biggest Aussie oil and gas explorers and producers have edged higher in early trade on Thursday despite broader market weakness.

Here’s why the spotlight is on some of the biggest names amongst the ASX 200.

Why ASX 200 energy shares are in the spotlight

The term “energy crisis” is cropping up in all sorts of media right now. One of the reasons that ASX 200 energy shares like Oil Search Ltd (ASX: OSH) have been rocketing higher recently is because of this crisis.

In Europe, energy demand is far outstripping supply at the moment. This market imbalance has seen energy prices shoot through the roof. Global benchmark Brent crude prices recently topped US$80 per barrel for the first time in 3 years.

According to an article in the Australian Financial Review (AFR), Australia could have an opportunity amid the looming global crisis. As a major energy exporter, gains from energy supply could help offset the recent iron ore price slump.

As gas and coal prices continue to surge, ASX 200 energy shares that export to other countries could be thrust into the spotlight. That includes the likes of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).

Australia was the largest supplier of China’s imported liquid natural gas (LNG) last year, meaning any price rise could be good for these exporter’s revenue.

Continued supply disruptions, including in the major production regions of Russia, have sent petrol and gas prices surging in Europe. Given the significant production capacity that these ASX 200 energy shares boast, they could be in the spotlight for quite some time to come.

Foolish takeaway

ASX 200 energy shares have experienced an up and down year on the markets. News of mergers has captured investors’ attention while volatile pricing has made them worth watching.

With the broad market experiencing heavy losses in early trade, these Aussie energy companies remain worth watching throughout 2021.

The post Here’s why ASX 200 energy shares are in the spotlight appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 S&P/ASX 300 Index (ASX: XKO) has jumped higher on Thursday morning in a good start to the day for investors. Shares in a number of companies across various sectors are on the move, so let’s take a look at some of the broad market index’s top performers this morning.

Which ASX 300 shares are leading the way on Thursday?

1. Orica Ltd (ASX: ORI)

Orica is one of the big names leading the index higher this morning. Shares in the explosives company have jumped 14.62% higher on Thursday to $13.80 per share.

With no new announcements this morning, that appears to be a hangover from yesterday’s FY21 Individually Significant Items update.

Shares in the ASX 300 company climbed higher following the update despite reporting a $345 million to $370 million expected reduction in net profit after tax for FY21.

2. Codan Ltd (ASX: CDA)

The Codan share price burst out of the blocks on Thursday morning, climbing more than 5% in early trade. It’s a welcome turnaround for investors who have watched the ASX 300 share slide 16.2% lower in the last month alone.

The Aussie communications technology manufacturer hasn’t had any price sensitive announcements in recent weeks but that hasn’t stopped the group’s shares from charging higher on Thursday. At the time of writing, the Codan share price is up 6.84%, trading at $12.81.

3. Beach Energy Ltd (ASX: BPT)

Beach Energy is another big-name ASX 300 share on the move this morning. Shares in the Aussie energy group are up 7.3% at the time of writing and have now climbed 40% higher in the past month.

Today’s share price move comes as a global energy crisis continues to loom and ASX 200 energy exporters get put in the spotlight. That supply shortage is good news for shareholders after Beach inked a 5-year LNG deal with BP for its maiden LNG exports.

Foolish takeaway

These are just a few of the ASX 300 shares on the move this morning. The index itself has added 1.34% at the time of writing to climb above 7,297 points.

The post Which ASX 300 shares are leading the way on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 Incannex Healthcare Ltd (ASX: IHL) share price has taken a beating over the past four weeks, having come off its all-time high of 44.5 cents on 2 September.

Prior to this, Incannex shares rallied from mid-August until this point. So, what’s happened to reverse the climb for this medicinal cannabis company?

Read on for more details.

What’s up with the Incannex share price lately?

The Incannex share price soared in August after the company advised it had filed an F-1 Registration form with the US Securities and Exchange Commission (SEC).

An F-1 registration is like an initial public offering (IPO) on the ASX, except it is reserved for companies domiciled outside of the US.

The key difference is that F-1 applicants complete a US public offering of American Depositary Shares (ADS) instead.

Each ADS represents 50 Incannex shares and trades on the American exchanges just like any ordinary share would.

Incannex shares jumped from 27.5 cents on the day of the announcement to an all-time high a few weeks later. 

But Incannex shares cooled off as September began, coinciding with the time it released its FY21 earnings results.  

In its report, the company recognised a 214% year over year increase in revenue, but this didn’t carry through to its net profit after tax (NPAT).

In fact, the company recorded an almost 74% loss from ordinary activities that mushroomed to $8.2 million. As such, the company’s net loss for the year ballooned 82% deeper into the red from FY20.

Investors weren’t impressed by the healthcare company’s results at all. In the days following the release, the Incannex share price started its march south.

So, it appears that investor sentiment has shifted for Incannex as selling pressures mount on its share price.

Share price snapshot

At the time of writing, Incannex is trading at 35 cents, down 2.82% today. That’s also a 21% loss over 4 weeks.

On a longer-term view, the Incannex share price has been a major outperformer over the past year to date, climbing 130% into the green.

That builds to a 331% return over the past 12 months for Incannex shareholders. This is well ahead of the 25% gains recorded by the S&P/ASX 200 Index (ASX: XJO) over the past year.

The post The Incannex (ASX:IHL) share price has lost 20% in 4 weeks. What’s happening? appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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 Orica Ltd (ASX: ORI) share price is the best performer on the ASX 200 on Thursday by some distance.

In afternoon trade, the commercial explosives company’s shares are up 15% to $13.80.

Why is the Orica share price charging higher?

Investors have been bidding the Orica share price higher today after brokers responded positively to a trading update on Wednesday.

That update reveals that the company is expecting individually significant items of between $345 million and $370 million to impact its profits in FY 2021. This is largely non-cash and relates to the impairment of goodwill for its EMEA segment and the Burrup plant.

One broker that believes this marks the end of its downgrade cycle is Morgans. In response, the broker has upgraded its shares this morning.

What did the broker say?

According to the note out of Morgans, its analysts have upgraded the company’s shares to an add rating with an improved price target of $13.70.

This is roughly in line with where the Orica share price is now trading following today’s impressive gain.

Commenting on the upgrade, Morgans said: “We think the earnings downgrade cycle which have plagued ORI for the last few years is now finally over. While ORI still faces both structural and cyclical headwinds, we think the new management team will turnaround the operations to generate more acceptable returns. Trading on an FY22 EV/EBITDA multiple of only 6.8x, we think that ORI is undervalued and upgrade to an Add rating.”

What else is being said?

Another broker is even more positive on the Orica share price.

According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted their price target to $16.11.

Based on the current Orica share price, this implies potential upside of almost 17% over the next 12 months. Its analysts remain positive on the company’s outlook following its update

The post Orica (ASX:ORI) share price jumps 15% on broker upgrade appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip shares rise on Microsoft deal, big four banks rebound

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

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