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The Mineral Resources Limited (ASX: MIN) share price is having a disappointing day on Tuesday.

In morning trade, the mining and mining services company’s shares are down almost 2% to $52.82.

Despite this decline, the Mineral Resources share price is still up 38% in 2021.

Is the Mineral Resources share price in the buy zone?

According to a note out of Bell Potter, its analysts believe the Mineral Resources share price is good value.

This morning the broker reiterated its buy rating and lifted its price target by 25% to $61.85.

Based on the current Mineral Resources share price, this implies potential upside of 17% over the next 12 months before dividends.

And with the broker forecasting a 4.2% dividend yield over the next 12 months, this potential return stretches to over 21%.

Why is Bell Potter positive on Mineral Resources?

Bell Potter has adjusted its iron ore and lithium price forecasts and believes Mineral Resources is well-positioned to benefit.

The note reveals that the broker is forecasting an average benchmark 62% fines iron ore price of US$138 a tonne and a US$715 spodumene concentrate (6%) price in FY 2022.

Bell Potter commented: “MIN is well positioned for forecast changes in iron ore and lithium prices. Pending approvals, MIN’s iron ore business is set to expand with new production hubs that will enable strong earnings throughout the pricing cycle. Historically, mines of the scale planned are amongst the most valuable minerals businesses in the market. MIN’s lithium business is set to benefit from the expected decarbonisation of the global energy economy, and MIN is positioning to capture further downstream lithium processing margins, by adding additional lithium hydroxide processing capacity.”

“In addition to MIN’s operations, we ascribe significant value to the project portfolio, which we believe will be further reflected in its share price in the next year, and in accordance with our ratings structure, maintain our Buy recommendation. Changes to our earnings estimates with this update include a 33% increase to CY22e and a 5% and 8% decrease to CY23e and CY24e respectively,” it added.

Those upgrades ultimately underpinned the increase in its Mineral Resources share price target by 25% to $61.85.

The post Top broker says Mineral Resources (ASX:MIN) share price is in the buy zone appeared first on The Motley Fool Australia.

More reading

• Mineral Resources (ASX:MIN) share price on watch after selling Pilbara Minerals stake
• Why Metalstech, Mineral Resources, TechnologyOne, & Webjet are storming higher
• ASX 200 midday update: TechnologyOne hits record high, lithium miners rise
• Why the Mineral Resources (ASX:MIN) share price is lifting today
• How does the Mineral Resources (ASX:MIN) dividend compare to the materials sector?

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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The Harris Technology Group Ltd (ASX: HT8) share price jumped after it posted a tripling in revenue thanks to the online shopping boom.

The Harris Technology share price added 4% to 12.5 cents at the open when the overall market slipped into the red.

The company reported a 206% surge in FY21 revenue to a record $41.8 million as net profit improved 73.6% to $1.8 million.

Harris Technology share price benefiting from good timing

Harris Technology couldn’t have picked a better time to complete its pivot to becoming a fully-fledged online retailer.

Its decision to close its brick-and-mortar shopfronts was made well before COVID-19. What’s more, it’s benefitting from the latest delta lockdowns that’s crippled Melbourne and Sydney.

Consumers have flocked to online shopping to wild the time away in isolation. Harris Technology is launching new websites to capture more organic search engine traffic and claims to be a major retailer on Amazon and eBay.

Other growth drivers behind HT8’s FY21 results

But Harris Technology also credits its agility to capitalise on the dynamic environment. The company started selling personal protective equipment (PPE) and expanded into games. Demand for both categories of products helped with its record full year sales.

“This excellent result was achieved despite increased competition in both the tech retail and online retail spaces which had an impact on margins,” said its chief executive Garrison Huang.

“But as a pure-play online retailer, it was pleasing that Harris Technology was able to maintain margins circa 18% with a rapidly growing presence across all major eCommerce marketplaces.”

Margins and inventory questions

But this isn’t to say that the company isn’t experiencing some pricing pressure either, or at least a lack of operating leverage. Its gross margin jumped an impressive 185% in the year, but that’s slower than its top-line growth.

Harris Technology added that it was continuing to invest in its inventory. The value of this asset has increased to $10.7 million at June 30, 2021. This compares to $3.3 million the year before.

“By securing these highly in demand products due to the global chipset shortage, the company is well positioned to turn over higher volumes of products in the coming months,” said the company.

“This will also be accommodated by a proposed upgrade in warehouse facilities in November 2021 to consolidate 4 small warehouses into 1 large complex that will improve operating logistics and optimise rental expenditure for better use of space.”

Foolish takeaway

Let’s hope that Harris Technology is better skilled at managing inventory than Kogan.com Ltd (ASX: KGN).

As Kogan’s shareholders found out, the problem with many electronic goods is the short life cycle. This could lead to painful write-downs for unsold goods.

The post Harris Technology (ASX:HT8) share price jumps as sales tripled appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Kogan (ASX:KGN) share price on watch after $11 million co-founder sale
• Here’s what experts are saying about the Kogan (ASX:KGN) share price
• 2 leading e-commerce ASX shares that could be buys in September 2021
• Why is the Kogan (ASX:KGN) share price 7% higher today?

Motley Fool contributor Brendon Lau 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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com 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 Alumina Limited (ASX: AWC) share price opened flat on Tuesday despite potential tailwinds for the global bauxite and aluminium market.

At the time of writing, the Alumina share price is unchanged from yesterday’s close of $2.06.

Alumina share price lower despite global supply concerns

A military coup in the West African nation of Guinea has sparked concerns about potential shortages in the global supply of bauxite, the world’s main source of aluminium.

The Australian reported that Guinean soldiers have managed to close both land and air borders, suspended the constitution and detained the president.

The report quotes Commonwealth Bank of Australia (ASX: CBA) mining and energy commodities analyst Vivek Dhar who said, “If the political instability in Guinea disrupts its bauxite exports, we expect bauxite prices to lift. Australia stands to benefit the most given its position as the world’s second-largest bauxite explorer.”

The Alumina share price has already surged 14.65% in September, fueled by potential aluminium shortages in China.

Reuters reported that top producers in China are facing tough power controls amid increasing government oversight of highly polluting industries.

The drag on output is having an impact on aluminium prices with the most-traded October aluminium contract on the Shanghai Futures Exchange closing near 14-year highs of US$3,311/t last week.

Alumina’s bauxite outlook

According to Alumina’s half-year results, China’s demand for imported bauxite is expected to grow steadily in the short-to-medium term.

The company said, “Around 60% of China’s bauxite consumption is based on imported bauxite in 2021. Guinea will continue to be the main bauxite supplier to China, followed by Australia and Indonesia.”

Why is the Alumina share price flat on Tuesday?

The Alumina share price is sitting on the fence on Tuesday despite the potential tailwinds for the bauxite market.

One potential concern could be the company’s interest in the bauxite mining company, Halco Inc, located in northwest Guinea. That said, Halco makes a relatively small contribution to group bauxite production. According to the company’s website, its annual production in 2019 was approximately 3 million dry metric tonnes.

The Alumina share price has also surged very quickly in a short span of time. Investors might be using the news as a catalyst to sell into.

The post Alumina (ASX:AWC) share price flat despite potential tailwinds for bauxite appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares this Monday
• The Alumina (ASX:AWC) share price rocketed 9% to an 18-month high today
• Which ASX shares are leading the way on the ASX 300?
• ASX 200 Weekly Wrap: ASX puts earnings season to bed with another rise
• These were the best performing ASX 200 shares last week

Motley Fool contributor Kerry Sun 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 recent results season was generally positive for ASX shares.

Although many companies declined to provide forecasts due to the current spread of the Delta variant of COVID-19, the 2021 earnings were mostly up from the previous years.

But the S&P/ASX 200 Index (ASX: XJO) hasn’t actually moved that much. In fact, the index has lost 0.13% over the past month.

So there must be a few ASX shares out there whose results were under-respected by investors?

Two experts recently each weighed in with an example.

It’s already run hard, but this is only the start of the marathon

Market Matters portfolio manager James Gerrish thought Aussie Broadband Ltd (ASX: ABB) presented excellent results.

“So obviously the stock has run pretty hard, but they’re growing customers at a really strong clip,” he told a Livewire video.

In fact, shares for the internet services provider has risen more than 40% over the past month. Just on Monday, the stock rose 7.7% after the business announced a fibre swap agreement.

But Gerrish believes it still has legs for a further climb.

“If we look further out over the next 12 months, they’ve got a really interesting pipeline of potential acquisitions and growth is going to tick higher,” he said. 

“So not only has it had a good run but it’s got some catalyst over the next 12 months to drive it higher.”

Aussie Broadband shares are in a trading halt on Tuesday morning pending a capital raising announcement.

Record result, and it’s sustainable

1851 Capital chief investment officer Chris Stott reckoned not enough investors have appreciated Eagers Automotive Ltd (ASX: APE) presented a “record result”.

“People don’t believe that [it] can maintain these current elevated margins going into the next 1 or 2 years.”

But according to Stott, the management of the car dealership network has refuted this.

“The company made a really good point of saying to the market that they think those margins are sustainable over the medium to longer term,” he said. 

“So we think that that’s one that certainly was underappreciated by the market, but delivered an outstanding record result.”

Eagers shares have risen 6.36% over the past month. They have gained a stunning 89% in the past year thanks to a surge in demand for private transport.

The post 2 ASX shares to take off after excellent reporting seasons appeared first on The Motley Fool Australia.

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• Why the Aussie Broadband (ASX:ABB) share price is frozen on Tuesday
• Why AnteoTech, Appen, Aussie Broadband, & Tyro shares are charging higher
• Up 9%, the Aussie Broadband (ASX:ABB) share price hits all-time high
• Why Aussie Broadband, Dubber, Regis Healthcare, & Webjet are storming higher
• The Aussie Broadband (ASX:ABB) share price is up 40% in a month. What’s next?

Motley Fool contributor Tony Yoo owns shares of Aussie Broadband Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband 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 Medibank Private Ltd (ASX: MPL) share price has climbed well into the green over the past few weeks.

Whereas the S&P/ASX 200 Index (ASX: XJO) is down 0.13% over the last month, Medibank shares have gained a further 7% over this time.

Let’s uncover what’s behind these gains.

What tailwinds are behind the Medibank share price?

The Medibank share price has been on a strong run over the last month. Although, there hasn’t really been a great deal of market-sensitive information during this time.

However, looking at the chart, Medibank shares have been trading in an ascending channel since March this year, climbing 20% this year to date.

Medibank Private share price, long-term trend: March-September 6 2021

Source: The Motley Fool

This momentum has been carried through the month of August until today and seems to be fuelled by several drivers in the company’s growth engine.

For starters, Medibank completed the acquisition of Myhealth Medical Group back in February. Then it released its half-year results for FY21 where it recognised a 27% increase in net profit after tax (NPAT) from the year prior.

In June, Medibank then announced it would return approximately $105 million to customers impacted by COVID-19. As per the company, the payment would cover around 2 million accounts.

As such, the company’s total COVID-19 support package amounted to $300 million.

Finally, the company released its FY21 results in August, recognising stellar growth over the year.

In its report, Medibank recognised a 40% jump in NPAT to $441 million that stemmed from a 4,900% increase in net investment income.

Consequently, the company increased its full-year dividend to 12.7 cents per share, a year on year increase of around 6%. Shareholders will enjoy this payment with full franking credits.

Based on the sum of these factors, it appears the Medibank share price has climbed higher over the last four weeks as a part of a long-term upward trend that has been sustained over 2021.

From this long-term trend, the Medibank share price is trading near its five year high of $3.67, currently sitting at $3.61 which is up 0.28% on Monday’s closing price.

Medibank Private share price snapshot

The Medibank share price has climbed 42% over the past 12 months after a bumpy start to 2021. In the past week, Medibank shares have walked a further 1.4% into the green.

This return has outpaced the broad index’s gain of around 25% over the past year.

The post Here’s why the Medibank (ASX:MPL) share price jumped 7% in a month appeared first on The Motley Fool Australia.

More reading

• How does the Medibank (ASX:MPL) earnings result compare to NIB?
• Medibank (ASX:MPL) dividend boost as payout ratio reduced
• Medibank (ASX:MPL) share price on watch after 40% jump in profit
• How did the Medibank (ASX:MPL) share price respond last earnings season?
• 10 ASX shares we’re overweight in right now: fund

The author Zach Bristow 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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The Marley Spoon AG (ASX: MMM) share price is under pressure on Monday and is trading notably lower.

In morning trade, the meal kit delivery company’s shares are down 8% to $1.86.

This means the Marley Spoon share price is now down 31% from $2.71 since the start of the year.

Why is the Marley Spoon share price sinking?

The catalyst for the weakness in the Marley Spoon share price today was news that Woolworths Group Ltd (ASX: WOW) has sold its stake in the company.

According to the release, the retail conglomerate has ceased to be a substantial holder following the completion of a sale of 28,026,000 Chess Depository Interests (CDIs) or 28,026 ordinary shares in Marley Spoon via an underwritten block trade. This represents a 9.87% stake in the company.

Woolworths has agreed to sell its interest for $1.91 per CDI, which equates to a discount of 5.9% to where Marley Spoon shares were trading at Monday’s close.

This values Woolies’ offloaded stake at approximately $53.5 million.

What now?

One positive for the Marley Spoon share price is that Woolworths may no longer be a shareholder, but it doesn’t plan to leave the company high and dry.

The release notes that in June 2019, Woolworths and Marley Spoon entered into a five year strategic growth alliance. This alliance covers things such as marketing support and customer origination programs, as well as cooperation on logistics and supply chain operations.

Positively, Woolworths continues to remain committed to the ongoing growth alliance at least until the end of the agreement in 2024.

The retail giant has not yet commented on the reason for the sale of its Marley Spoon stake. Nor has it revealed what it plans to do with the proceeds.

The post Marley Spoon (ASX:MMM) share price sinks 8% after Woolworths sells its stake appeared first on The Motley Fool Australia.

More reading

• Here’s why the Woolworths (ASX:WOW) share price is in focus today
• The Woolworths (ASX:WOW) share price has gained 17% in the last 6 months
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 company bosses lobby for reopening plan
• Woolworths (ASX:WOW) share price history: What caused the biggest ups and downs?

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 Marley Spoon AG. The Motley Fool Australia owns shares of and has recommended Marley Spoon AG. 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 Cettire Ltd (ASX:CTT) share price has been among the best performers on the ASX so far this year.

Shares in the online fashion retailer have skyrocketed by a whopping 524% — from a low of just $0.49 at the beginning of the year, to the current price of $3.06 (at the time of writing). That includes a gain of 2.68% in early trade today.

The fashion company now has a market capitalisation of more than $1.1 billion.

Company background

Cettire is an online retailer specialising in luxury designer brands, such as Gucci, Prada, and Valentino.

The company has grown quickly since its launch in 2017 and now stocks more than 160,000 items of clothing, shoes, bags, and other accessories.

While the company originally only catered to adults, it has also recently launched a childrenswear division.

Recent financials

In news that could be affecting the Cettire share price, the company released its FY21 results to the market on 31 August. The company performed well across the board, beating its own prospectus forecast and upgraded earnings guidance.

Sales revenues increased by a staggering 304% year-on-year (to $92.4 million), underpinned by a 285% increase in active customers. Also noteworthy was the fact that a higher proportion of the company’s revenues came from repeat customers: 40% in FY21, versus just 26% in FY20.

This is a promising sign and shows the company is beginning to build a degree of brand loyalty among its customers. It reflects well not just on the company’s product offering, but also on the customer experience Cettire provides through its online store.

Commenting on the results, Cettire Founder and CEO Dean Mintz said he was “particularly proud of the substantial increase in active customers, very strong revenue growth, robust product margins and the increasing proportion of revenues from repeat customers”.

Other news possibly affecting the Cettire share price

The company also launched its own proprietary e-commerce storefront earlier in August. This means that Cettire will no longer rely on third parties to manage its website, and it can own the customer experience from end to end.

The move also means that Cettire now has increased flexibility to expand globally and can more quickly and easily scale its operations.

Dean Mintz said that the shift towards proprietary software represented “the culmination of an extensive engineering program and is a key milestone in the execution of [Cettire’s] technology strategy, providing considerable flexibility to increase penetration of existing markets and take advantage of adjacent opportunities”.

Cettire share price snapshot

The Cettire share price has been steadily gathering momentum throughout the year, possibly on the back of the success of other e-commerce upstarts like plus-size women’s retailer City Chic Collective Ltd (ASX:CCX) and online furniture store Temple & Webster Group Ltd (ASX:TPW).

The Cettire share price did spike after the release of its FY21 financial results. Since 31 August, Cettire shares have gained a further 15%, continuing a remarkable run for the young company.

The post The Cettire (ASX:CTT) share price is up a whopping 500% this year appeared first on The Motley Fool Australia.

More reading

• Why the Cettire (ASX:CTT) share price rocketed 24% higher on Friday
• ASX reporting wrap-up: Harvey Norman, Cettire, PointsBet
• Cettire (ASX:CTT) share price slumps despite revenue quadrupling

Motley Fool contributor Rhys Brock owns shares of Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Cettire Limited and Temple & Webster Group 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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Investors may be on the search for ASX dividend shares that can provide growing income in retirement.

Not every business has been able to grow their dividend in every year of the past five years. Just look at what happened to Sydney Airport Holdings Pty Ltd (ASX: SYD), Transurban Group (ASX: TCL) and Commonwealth Bank of Australia (ASX: CBA) with COVID-19.

But these two ASX dividend shares may be able to provide growing dividends in the coming years:

APA Group (ASX: APA)

APA is one of the biggest infrastructure businesses on the ASX. It owns a vast gas pipeline across Australia, spanning 15,000km across mainland Australia. APA supplies half of the nation’s natural gas usage. It also owns or has interest in gas storage facilities, gas power stations and renewable energy generation (wind and solar farms).

The business recently confirmed it is in discussions to potentially buy Basslink Pty Limited, which owns and operates a 370km high voltage, direct current electricity interconnector between Victoria and Tasmania.

A key focus of the business is to leverage its energy infrastructure capabilities into the next generation energy technologies. APA calls this its pathfinder program. APA is looking for opportunities in both Australia and the USA.

APA points to an opportunity worth at least $68 billion to 2040 in Australia. That’s $8 billion in gas pipeline infrastructure, at least $40 billion in renewables, firming and storage and at least $20 billion in electrification (mostly transmission).

In the USA, APA also says there’s an investment opportunity worth at least US$2.7 trillion to 2040. There’s $125 billion of gas pipeline infrastructure, US$1.6 trillion of renewables and firming and US$1 trillion of electrification.

APA also believes the hydrogen economy worldwide is worth up to US$11 trillion. There is potential for APA’s existing pipeline to be repurposed for hydrogen (fully or blended).

The ASX dividend share has increased its distribution every year for over a decade and a half. In FY22 it’s expecting to grow the distribution by another 3.9% to 53 cents. That’s a forward distribution yield of 5.7%.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Patts is an investment house that has been listed since 1903. It has paid a dividend every year since then. It also has the record on the ASX for the number of years it has consecutively increased its dividend for shareholders. That growth streak started in 2000.

The business has a diversified portfolio of assets that help fund its dividend every year. Some of its ASX investments include TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI), Clover Corporation Limited (ASX: CLV), Pengana Capital Group Ltd (ASX: PCG), Pengana International Equities Ltd (ASX: PIA) and Australian Pharmaceutical Industries Ltd (ASX: API).

The ASX dividend share also has investments in unlisted businesses such as agriculture, financial services, mining (Round Oak), swimming schools and electrical products (Ampcontrol).

Round Oak, Brickworks and New Hope are expected to add to Soul Patts’ FY21 regular net profit after a good year.

Soul Patts receives dividends and distributions from its portfolio, pays out some as a growing dividend and re-invests the rest for more long-term growth.

At the current Soul Patts share price, it has a grossed-up dividend yield of 2.5%.

The post 2 ASX dividend shares that could provide growing income in retirement appeared first on The Motley Fool Australia.

More reading

• Transurban (ASX:TCL) share price could get boost from WestConnex rumour
• ASX 200 edges higher, Soul Patts (ASX:SOL) falls, Hansen (ASX:HSN) declines
• Here’s why the Brickworks (ASX:BKW) share price is lifting on Monday
• Leading brokers name 3 ASX shares to buy today
• Soul Patts (ASX:SOL) share price slips on FY21 earnings update

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Clover Corporation Limited. The Motley Fool Australia owns shares of and has recommended APA Group, Brickworks, and Washington H. Soul Pattinson and Company Limited. 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 AGL Energy Limited (ASX: AGL) share price has fallen from grace, reaching an all-time low of $6.22 yesterday. This is a stark contrast from when its shares were trading around the $27 mark in April 2017.

Ever since COVID-19, the company has been severely impacted by several downgraded earnings estimates.

At Monday’s market close, AGL shares finished the day slightly up 0.47% to $6.44.

What’s dragging AGL shares lower lately?

There are a few catalysts as to why the AGL share price has tumbled lower over the past month.

First and foremost, AGL released its full year results in mid-August, recording significant losses across the board.

The company acknowledged that it’s struggling with the current conditions of the national electricity market as well as unstable electricity prices. This led to a sharp downturn in wholesale prices for electricity and renewable energy certificates.

Adding to the strain, AGL’s soon-to-close Liddell coal-fired power station faced temporary closures this year. An injured worker and the outage of Liddell Unit 2 forced AGL to shut down operations.

The company plans to transform the site with a hydro and solar energy facility following Liddell’s ceased operations in 2023.

AGL has since proposed to split into two separate energy businesses following a catastrophic 12 months.

The first, New AGL, will focus on delivering electricity, gas, internet, and mobile services to Australian households, emerging as a zero-carbon electricity supplier. And the other business, PrimeCo, will be centred on becoming Australia’s largest electricity generator.

AGL previously noted that it is shifting towards more environmentally friendly options.

AGL share price summary

It has been a disastrous 4 years for AGL shareholders, having lost around 75% of their portfolio value. The company’s share price is down almost 60% in the past 12 months alone, with no end in sight.

It’s anyone guess if and when the AGL share price will stage a recovery and recoup its worth.

On valuation grounds, AGL commands market capitalisation of around $4 billion, with 623 million shares on its registry.

The post The AGL (ASX:AGL) share price is down 16% in a month. Here’s why appeared first on The Motley Fool Australia.

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• The AGL (ASX:AGL) share price is now trading on a forecast 11.7% dividend yield
• These ASX 200 dividend shares slashed their payouts in August
• AGL Energy (ASX:AGL) hits record low, slides a further 12% in August

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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Investors may finally have a reason to get excited again about the Transurban Group (ASX: TCL) share price.

There are reports that the ASX toll road operator is in pole position to snatch a commanding stake in Sydney’s WestConnex.

This is because its biggest competitor to the buyout, IFM Investors, is pulling out of the race, reported the Australian Financial Review.

Transurban share price in fast lane to WestConnex?

The article didn’t cite any sources but claimed that IFM will not be bidding on the auction this week. This is despite undertaking due diligence over the past six months and trying hard to win a slice of the asset over the last five years.

If the rumours are true, it could energise the Transurban share price. There has been a lack of catalysts for the S&P/ASX 200 Index shares as the long delta lockdowns in Victoria and New South Wales and project blowouts cloud its outlook.

Transaction share price catalyst

Nothing like a significant transaction to put the Transurban share price back in the fast lane!

IFM taking the exit ramp means leaves a clear road ahead for Transurban and its consortium buddies to put in a winning bid for 24.5% of WestConnex this week.

The consortium includes AustralianSuper and Canada Pension Plan Investment Board, according to the AFR.

In it to win it

Another 24.5% stake in WestConnex will be auctioned off next week. But bidders will need to have participated in the first auction to be entitled to bid in the second. As they say, you have to be in it to win it.

But the last lap is usually the most exciting part of any race, and this is no different. IFM has not formally withdrawn from the auction and there’s room for manoeuvring and surprises before Thursday’s bid deadline.

After all, IFM lost out to Transurban for a stake in WestConnex back in 2018 and one would think they wouldn’t be giving up so easily.

Infrastructure makes hot M&A targets

Throw in the fact that quality infrastructure is in hot demand during this ultra-low interest rate era. It’s this hunt for stable and predictable yield that triggered takeover bids for the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price and Spark Infrastructure Group (ASX: SKI) share price.

There’s even talk that gas pipeline owner APA Group (ASX: APA) could attract a suitor too even as it mulls acquiring assets.

Too early to call a winner

Further, IFM will miss out on a $50 million consolation prize if it pulls out now. The AFR said that bidders are offered a 1% capital commitment fee if their bid hit the states reserve price and was unsuccessful.

The fee is meant to offset costs in preparing the bid and to encourage competition.

In case you are wondering, Transurban and its consortium owns the 51% stake in WestConnex that isn’t up for auction.

The post Transurban (ASX:TCL) share price could get boost from WestConnex rumour appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau 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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