Tag: Motley Fool

The Transurban Group (ASX: TCL) share price will be one to watch this morning after the toll road operator released its financial year 2021 results.

Transurban share price in focus on $2.26 billion revenue

• Transurban reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of around $1.81 billion – down 3.3% on FY20
• Approximately $2.26 billion revenue – down 0.3% year-on-year
• Free cash decreased 13.5% to around $1.27 billion
• Dividends totalling 31.5 cents over FY21, including a 21.5 cent final dividend

What happened in FY21 for Transurban?

FY21 saw Transurban struggling against a drop in traffic driven by COVID-19 in the United States and Melbourne.

Transurban also sold its Chesapeake assets for approximately $2.8 billion in December. The news boosted the Transurban share price by 1.2%.

The group’s average daily traffic dropped by 0.4% over the 12 months to 30 June.

In Melbourne, Transurban’s average daily traffic fell 24.5% over the financial year. It also fell 13.3% in North America, spurring the company’s EBITDA to drop 53.6% in the region.

Fortunately, Sydneysiders used Transurban’s tolls 22.3% more than they had in FY20 thanks to the opening of the M8 tollway (formerly known as the New M5) and NorthConnex.

What did management say?

Transurban CEO Scott Charlton commented on the results likely to drive the Transurban share price today:

Over the course of FY21 Transurban demonstrated the resilience of our business model, strengthened our balance sheet, and continued investing for long term growth…  

Since the end of the financial year we have seen restrictions reimposed in Sydney, Melbourne and Brisbane, impacting traffic across all three regions. Fortunately, experience has shown us that traffic rebounds quickly when restrictions are lifted although the rate of recovery depends on the length and nature of ongoing restrictions.

What’s next for Transurban?

The company hasn’t given guidance for FY22.

However, it stated it has a “large pipeline of opportunities progressing in core markets”.

It is continuing to address challenges with Melbourne’s West Gate Tunnel project.

Transurban also said it will continue to prioritise giving its shareholders strong dividends. It plans to pay dividends in line with its free cash, excluding capital releases.

The Transurban share price has had a relatively average 12 months on the ASX.

It has gained 2.07% since this time last year.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 23.37% in the same time.

The post Transurban (ASX:TCL) share price on watch following FY21 earnings 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 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 Mineral Resources Limited (ASX: MIN) share price has managed to set a new all-time high every week between 7 June and 30 July.

Unfortunately, the bullish run for Mineral Resources came to a grinding halt last week, when the company’s shares tumbled 7.3%.

It’s a similar narrative for the iron ore majors including the likes of BHP Group Ltd (ASX: BHP), Fortescue Metals Group Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO), sliding a respective 2.71%, 6.30% and 2.18% last week.

Despite the sharp pullback last week, the Mineral Resources share price has spent most of the year trending higher. It’s up 53% year-to-date.

By comparison, the S&P/ASX 200 Materials (INDEXASX: XMJ) is up 12.58% this year.

Mineral Resources has managed to race well ahead of diversified iron ore majors BHP and Rio Tinto, which have rallied 20.99% and 12.73% year-to-date.

Conversely, recent headlines of iron ore tumbling below US$200/tonne have dragged the Fortescue share price to a negative 7.06% year-to-date performance.

What’s driving the outperformance of the Mineral Resources share price?

Significant growth in iron ore production

According to Mineral Resources, the company is Australia’s fifth-largest iron ore producer.

However, its production figures pale in comparison to BHP, Rio Tinto and Fortescue.

In Mineral Resources’ June quarter and full-year FY21 activities report, the company reported a record 17.3 million wet metric tonnes (wmt) of iron ore shipments.

By comparison, Fortescue reported full-year FY21 iron ore shipments of 182.2 million tonnes.

Mineral Resources is poised for significant growth in its iron ore production over the next five years, aiming to grow its production from 20 million tonnes per annum (Mtpa) to 90 Mtpa.

Riding the lithium hype

Meantime, ASX200 lithium giants Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS) have delivered triple-digit year-to-date returns thanks to surging lithium prices and heightened demand for electric vehicles.

Investors often forget that Mineral Resources is one of the world’s top 5 lithium miners with joint ownership of two major hard rock lithium mines.

The company’s recent activities report highlighted 484,984 dry metric tonnes of lithium spodumene production in FY21, a 34% increase on the prior corresponding period.

The post How is the Mineral Resources (ASX:MIN) share price holding up against the materials sector? appeared first on The Motley Fool Australia.

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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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Are you on the lookout for growth shares to buy? Then you may want to look at the ones listed below.

Here’s why analysts rate these three ASX growth shares highly:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. Over the past 80 years, Breville has become an iconic Australian brand, developing high quality and innovative products for kitchens around the world. The good news is that the leading appliance manufacturer’s growth is not expected to end any time soon. This is thanks to strong demand, favourable industry tailwinds, international expansion, and its ongoing R&D investment.

UBS is confident that Breville’s strong growth can continue for some time to come. It is forecasting double-digit sales growth through to at least FY 2023. In light of this, the broker rates its shares as a buy and has put a $35.70 price target on them.

IDP Education Ltd (ASX: IEL)

Another ASX growth that could be worth considering is IDP Education. It is a provider of international student placement services and English language testing services. Although demand for its services has softened during the pandemic, it has been tipped to bounce back strongly once trading conditions return to normal. Particularly given its strong balance sheet, quality software business, and acquisitions.

A recent note out of Morgan Stanley reveals that its analysts are very positive on IDP Education long term growth prospects. It has an overweight rating and $33.00 price target on its shares.

NEXTDC Ltd (ASX: NXT)

A final growth share to look at is NEXTDC. It is one of the Asia-Pacific region’s leading data centre operators with a growing number of world class centres in key locations across Australia. Thanks to strong demand for data centre capacity due to the structural shift to the cloud, NEXTDC has been growing its sales and operating earnings at a solid rate for some time. Positively, this is expected to continue as the shift continues. It could also be bolstered by its plans to expand into the Asian market.

One broker that is particularly positive on NEXTDC is UBS. Its analysts currently have a buy rating and $15.40 price target on the company’s shares.

The post 3 strong ASX growth shares for investors in August appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Idp Education Pty Ltd. 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 Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has had a stellar year thus far.

Shares in Australia’s largest airport started the year at around $6.30.

At the end of Friday’s trading session, Sydney Airport shares closed at $7.72.

Let’s take a look at what’s been fuelling the Sydney Airport share price.

Takeover offer fuelling Sydney Airport share price

Before July, the Sydney Airport share price was struggling along with the broader travel market in general.

With COVID-19-induced lockdowns halting most travel in Australia, shares in Sydney Airport were down more than 8% for the year at the start of July.

Thanks to a $22.6 billion buyout offer, shares in the infrastructure giant stormed into positive territory.

A consortium of infrastructure investors launched the takeover offer, valuing Sydney Airport at $8.25 per share.

The interested consortium comprised IFM Investors, Global Infrastructure Management, and QSuper.

Initially, Sydney Airport’s management noted that the takeover offer of $8.25 per share was below the $8.86 price the company’s shares were trading at before the COVID-19 pandemic.

The Sydney Airport share price received an additional boost after rumours swirled of a counter offer.

According to an Australian Financial Review (AFR) article, another consortium led by Macquarie Group Ltd (ASX: MQG) was considering a counter bid.

Sydney Airport formally rejected the takeover offer for 100% of its shares in mid-July.

Outlook for Sydney Airport

Sydney Airport has 100% interest in Australia’s largest international gateway. The company’s operations include aeronautical, retail, property, car rental and parking, and ground transport services.

According to another article published in the AFR, analysts noted the hidden value in Sydney Airport.

Analysts from Macquarie cited that the development of land owned by Sydney Airport could be a $900 million asset. This could result in the company’s shares gaining 33 cents.

In addition, the article noted that the company is currently charging Qantas Airways Limited (ASX: QAN) lower market rates for rent.

As a result, analysts believe that Sydney Airport’s share price could be lagging by a further 22 to 30 cents per share.

Following the increased attention, shares in the company will be under further scrutiny later this month.

Sydney Airport is slated to release its 2021 half-year results on Friday 20 August.

The post The Sydney Airport (ASX:SYD) share price is up 20% so far in 2021. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ELMO Software Ltd (ASX: ELO) share price is one to watch on Monday morning after the Aussie software group reported its financial year 2021 (FY2021) earnings to the market.

ELMO share price in focus as revenue guidance achieved

The cloud-based human resources and payroll software company reported its FY2021 results highlighted by the following:

• Annualised recurring revenue (ARR) of $83.8 million, up 52.1% on FY2020 figures. Organic growth of 26.0% in mid-market and small business operations, as well as recent acquisitions, helped deliver this result.
• Full-year revenue climbed to $69.1 million, up 37.9% on FY2020 figures.
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $0.4 million compared to a $2.9 million loss in FY2020.
• Gross profit of $59.9 million compared to $42.8 million in FY2020.

ELMO previously provided FY21 guidance of $83 million to $85 million ARR and revenue expectations of $68 million to $70 million. Based on the above, today’s results were largely in the mid-range of guidance, making the ELMO share price one to watch this morning.

What happened in FY21 for ELMO?

The ELMO share price has been under pressure in FY21. Shares in the Aussie software group are down 10.9% in the last 12 months. A capital raising and FY20 revenue at the lower end of guidance both put pressure on the Aussie tech share.

ELMO continued to roll out new modules and technology offerings throughout the year. These included the launch of its Predictive People Analytics module, predicting the “flight risk” of high performers, and its ELMO Experiences module subsequent to year-end.

What did management say?

ELMO CEO and co-founder Danny Lessem commented on the company’s performance:

We saw strong growth returning throughout 2H FY21 from the mid-market segment and growth accelerating in the Breathe (small business) segment.

Returning business confidence and the increase in remote based working is driving the adoption of cloud-based business tools including HR technology. FY22 is shaping up to be a good year for ELMO, across both mid-market and small business segments.

We anticipate strong growth in FY22 and expect to surpass $100 million in ARR, an exciting milestone.

What’s next for ELMO?

According to the company’s results release, ELMO is looking to expand its footprint in the UK by leveraging the recent Webexpenses acquisition to launch ELMO in that market.

ELMO’s FY2022 guidance includes group ARR of $105 million to $111 million with revenue of $90.5 million to $95.5 million. Group EBITDA is projected to climb to $1 million – $6 million this financial year.

The ELMO share price has been under pressure for the last 18 months or so. The Aussie tech share will be in focus following this morning’s results announcement after the company hit its ARR and revenue guidance.

The post ELMO (ASX:ELO) share price on watch after full-year result 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. owns shares of and has recommended Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. 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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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Webjet Limited (ASX: WEB) is now the most shorted ASX share despite its short interest falling week on week to 11.35%. Short sellers have been targeting the online travel agent amid concerns over the travel market recovery following the spread of the Delta variant.
• Zip Co Ltd (ASX: Z1P) has seen its short interest reduce notably week on week to 10.7%. Short sellers appear to have been closing their positions following M&A activity in the BNPL industry.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease to 9.6%. Short sellers have been targeting this travel agent due to longer than expected delays in the travel market recovery.
• Kogan.com Ltd (ASX: KGN) has short interest of 8.5%, which is down significantly week on week. Short sellers may be closing positions on the belief that lockdowns are boosting sales and helping the company work through its inventory issues.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.4% of its shares held short, which is up slightly week on week. Concerns over this communications, defence, and space company’s cash flows appear to be behind this.
• Inghams Group Ltd (ASX: ING) has 8.4% of its shares held short, which is flat week on week. Fears over a major contract renewal with a supermarket giant continue to weigh on investor sentiment.
• Tassal Group Limited (ASX: TGR) has short interest of 7.8%, which is down week on week. Weak salmon prices have been weighing on investor sentiment. Though, news that a rival is being taken over today could boost sentiment.
• PolyNovo Ltd (ASX: PNV) has seen its short interest increase to 7.1%. Short sellers have been increasing their positions in this medical device company following a soft finish to FY 2021.
• A2 Milk Company Ltd (ASX: A2M) has seen its short interest ease to 6.7%. Countless guidance downgrades, weakness in the daigou channel, and concerns over potential regulatory changes in China are weighing on its shares.
• InvoCare Limited (ASX: IVC) has seen its short interest remain flat at 6.5%. Short sellers appear to be targeting this funerals company amid concerns that it is losing market share. This is despite its significant investment in acquisitions and its strategy.

The post These are the 10 most shorted ASX shares 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. owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, POLYNOVO FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended A2 Milk, Flight Centre Travel Group Limited, and InvoCare 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 Westpac Banking Corp (ASX: WBC) share price has travelled higher throughout 2021, lifting close to 30%. These gains could be considered impressive for a blue-chip banking share in any other year. However, the onset of the COVID-19 pandemic in early 2020 has meant many ASX shares are trading off low comparables from March 2020.

Westpac shares hit a multi-decade low of $13.47 when the ASX crashed early last year. Prior to that, you would have to go back to the 2008 global financial crisis to pick up the company’s shares at that price.

And with the pandemic and associated lockdowns continuing to wreak havoc across Australia and the world, we take a look at how Westpac shares have historically performed when prior lockdowns have lifted.

A glimpse of Westpac shares during lockdowns

Looking at the Westpac share price chart and the timings of previous lockdowns, there does appear to be a correlation between the pair.

During Australia’s first lockdown in early 2020, particularly the months-long Victorian stage 4 restrictions, Westpac shares tumbled to bargain prices, along with the wider share market. It wasn’t until there was an end in sight to reopening the economy in May 2020, that the bank’s shares began to pick up.

Victoria again went into another harsh lockdown in June 2020 following new locally acquired cases of COVID-19. This sent Westpac shares trending downwards, tumbling from as high as $20.19 on 9 June to around $16.00 in September 2020. Once the Victorian Government signalled it had overcome the current outbreak enough to start opening up, Westpac shares surged to above $20 by November.

Fast-forward to last month, the company’s shares were enjoying pre-pandemic highs of almost $26 until COVID-19 struck once more. For the past 3 weeks, Westpac shares have been declining overall as the country grapples with the latest outbreak. New South Wales recorded 268 new cases yesterday, totalling 1,764 cases last week alone.

At Friday’s market close, Westpac shares last traded at $25.12. This reflects a decline of around 7% from their 52-week high of $27.12 achieved in mid-June this year.

It’s widely known that when lockdowns come into effect, much of the Australian economy suffers. But it appears that the Westpac share price is also negatively impacted by these restrictions. However, in the past, as restrictions have eased and businesses resume trading, the company’s shares have tended to push higher.

Is the Westpac share price a buy?

Investment firm, Bell Potter recently upgraded its rating on Westpac shares to $26.50, adding 18% to its 12-month price target. This implies an upside of roughly 5% based on the current Westpac share price.

The post How does the Westpac (ASX:WBC) share price perform after lockdowns? appeared first on The Motley Fool Australia.

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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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Buy ASX shares for the long term, we’re always told. Don’t try to time the market.

But the irony is the same experts that espouse this to retail investors don’t, or can’t, follow it themselves.

That’s because fund managers are judged by portfolio performance on a monthly, quarterly and yearly basis.

If you have to keep your head above water every month, sometimes you don’t have the luxury of holding onto a quality stock for a long duration, waiting for it to realise its full potential.

So that’s why it’s interesting to hear what professional portfolio managers would do if they didn’t have these short-term pressures.

Here are 5 ASX shares that fund managers would hold onto if the market shut down tomorrow for 5 years.

People say it’s expensive, but it will keep growing

The Montgomery Fund portfolio manager Joseph Kim liked the look of industrial real estate provider Goodman Group (ASX: GMG). 

“People are going to say, it looks expensive. It’s [been] ‘expensive’ for a long period of time.”

He told The Motley Fool that 5 years is a long time, but Goodman seems to have all its ducks lined up.

“You’ve got a management team that’s aligned [to a] value-focused business. You can see the pipeline of developments that they have,” Kim said.

“And in the next 2 or 3 years, you should be growing at about 10% [per annum]. The business is getting more valuable over time.”

Goodman shares were trading at $23.37 on Friday afternoon, having risen more than 20% on the year.

A simple business model to understand

For Cyan Investment Management portfolio manager Dean Fergie, RAIZ Invest Ltd (ASX: RZI) is his fund’s biggest holding because he’s happy to just keep holding it.

If you can’t sell the stock for 5 years, it helps if what the company does is easy to understand.

“It’s basically a micro investing platform. It allows retail investors to save by rounding up in their spending,” he told The Motley Fool. 

“It allows them to make their own deposits into small investment accounts. It’s all online via an app. It’s all automated.”

Raiz broke off a few years ago from its US parent Acorns, which is now reverse-listing at a US$2.2 billion valuation.

“On similar valuation metrics such as customer numbers and FUM [funds under management], would value Raiz at somewhere around $4 per share,” Fergie said in June.

On Friday afternoon Raiz was trading for $1.90, which is an impressive 94% up for the calendar year.

I’ve already held this ASX share for 5 years

TMS Capital portfolio manager Ben Clark told The Motley Fool that his fund has already held CSL Limited (ASX: CSL) since its inception, which was almost exactly 5 years ago.

“I picked that one because I think, come hell or high water, whatever gets thrown at us over the next 5 years that you couldn’t do anything about because you couldn’t trade the shares, it is a business that is incredibly resilient,” he told Ask A Fund Manager.

“You can sleep well knowing CSL will come through it because it has the balance sheet [and] the industry it operates in is forecast to continually grow.”

CSL’s plasma donation business in the US plummeted last year after the arrival of COVID-19. But Clark was comfortable that it would eventually return as the country moves into a post-pandemic lifestyle.

“Everyone goes on about the vaccines with CSL — it’s a good part of the business. [But] it’s not going to really turn the needle. It’s the blood collection business that’s the engine that drives CSL and that’s had a really difficult year and it should start to accelerate.”

CSL shares are up 4.3% for the year, going for $297.27 on Friday afternoon.

The product will shine through

For those who are willing to take on a bit more risk in return for better gains, Montgomery’s Kim nominated AVITA Medical Inc (ASX: AVH).

“There’s a lot of concern around cash burn and the total addressable market, et cetera. I won’t say it’s not risky because they still need to execute.”

The US company makes regenerative medical treatments, with the current flagship product designed to treat burns patients.

While old habits are hard to shake even in the medical world, Kim admitted.

“But then, ultimately, as a doctor with the duty of care, you’ve got to provide the best outcome to your patients. I think from that perspective, I’m pretty optimistic now.”

Avita shares were trading for $5.10 on Friday afternoon, after hitting $7.37 back in January.

Our ‘most successful investment’

Cyan’s Fergie would be happy to hold onto his fund’s “most successful investment over the past 2 or 3 years” for a further half-decade.

But he admitted Alcidion Group Ltd (ASX: ALC)’s activities are more difficult to quantify than a business like Raiz.

“They provide software to hospitals — patient tracking, nurse paging and clinical decision-making software,” he told The Motley Fool.

“They’re sort of replacing all the [manual work] when you go to hospital and people are just writing on boards to say ‘I’ve given them this medicine and I’ll come back,’ and someone else reads it.”

According to Fergie, the technology platform is now “commercially proven”. 

“This year, they’re going to do something like $28 million in revenue. They’re in reference sites, both here in Australia and the UK,” he said. 

“It’s a really kind of exciting role, that of new technology. It isn’t widely adopted in a very slow-moving industry.” 

Alcidion shares have shot up in excess of 92% this year. The ASX share was trading at 36 cents on Friday afternoon.

The post 5 ASX shares to hold for 5 years appeared first on The Motley Fool Australia.

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• 3 small cap ASX shares to watch

Motley Fool contributor Tony Yoo owns shares of Avita Medical Limited and CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alcidion Group Ltd, Avita Medical Limited, and CSL Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd and Avita Medical 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 Commonwealth Bank of Australia (ASX: CBA) share price has charged 23.9% higher in 2021. Shares in Australia’s largest bank are now up nearly 80% since the bottom of the March 2020 bear market.

As the ASX bank share approaches a new all-time high, let’s take a look at some of the bank’s biggest share price moves in recent times.

What has caused the major CBA share price moves?

Let’s start with recent history. The coronavirus pandemic in early 2020 saw ASX 200 shares like CBA get smashed last year.

The CBA share price plummeted 36.6% lower in the space of about 6 weeks. At the time, with borders slamming shut and an unprecedented health crisis looming, investors were worried.

However, record government stimulus and a better than expected health response has helped propel the Aussie bank share back towards a new all-time high.

Prior to COVID-19, the CBA share price slid lower for about 6 months in the first half of 2018. The catalyst for this was the 2018 Financial Services Royal Commission established on 14 December 2017.

The Royal Commission examined various aspects of the Aussie financial services sector. There were numerous scandals and practices investigated by the commission which led many to believe further restrictions and sanctions would be imposed on the banks.

The CBA share price fell about 14% between January and June 2018. However, clearly, the Aussie bank share rebounded strongly to hit its current $103.75 level.

Investors would also likely remember the 2008 Global Financial Crisis (GFC). The GFC hit the broader economy, but banking and financial services were in particular strife.

There were some fairly shocking events unfolding in the financial services world. Those included the demise of Lehmann Brothers and Bear Stearns, and a near-collapse of Australia’s own Macquarie Group Ltd (ASX: MQG).

Fears of an end to banking as we know it saw the CBA share price plummet more than 50% in the 2008 calendar year. Once again, the share price recovered in the decade that followed, in what was good news for shareholders.

Foolish takeaway

The CBA share price has had its fair share of ups and downs in recent times. Shares in the Aussie bank have been climbing higher in 2021 and are now just shy of a new record high.

Investors will be hoping for more of the good news and less of the past major events that have caused the bank share to slump lower.

The post CBA (ASX:CBA) share price history: What caused the biggest ups and downs? 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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Telstra Corporation Ltd (ASX: TLS) share price could be on the move on Monday.

This follows the release of an announcement this morning by the telco giant.

Why is the Telstra share price on watch?

All eyes will be on the Telstra share price after the company announced an agreement with Affinity Equity Partners to acquire MedicalDirector for an enterprise value of $350 million.

MedicalDirector is an Australian GP clinical and practice management software company that has been trusted by healthcare practitioners for over 25 years.

The release notes that it provides software as a service (SaaS) and innovation to the healthcare industry. This includes across electronic health records, patient and practice management, billing, scheduling, care coordination, medicines information and clinical content.

It currently supports approximately 23,000 medical practitioners and is used to deliver more than 80 million consultations a year.

The transaction is expected to complete in the first quarter of FY 2022.

Why is Telstra acquiring MedicalDirector?

Telstra Health’s Board Chair, Brendon Riley, notes that the acquisition of MedicalDirector is a key step in Telstra Health’s vision to create a connected and improved digital health experience for all.

He said: “MedicalDirector is a modern clinical and practice management solution that supports GPs and other medical specialists to focus on providing high quality care and reducing time on paperwork and administration. It supports consultations by medical practitioners through a comprehensive patient medical record, including electronic prescriptions, options for virtual consultations, patient care plans, real time alerts about drug safety and drug interaction, and a range of other functionalities.”

Mr Riley believes the business will be a very important addition for Telstra Health. It also expands the company’s footprint in the UK market.

He explained: “GPs play a central role in connecting to every part of the health and aged care systems, and practice management is an incredibly important addition for Telstra Health in providing quality solutions and supporting them to deliver care.”

“Telstra Health has transformed substantially over the past five years and this announcement reflects its continuing maturity as a business and its importance as part of Telstra’s long-term growth strategy. It also reflects its continued growth into a global business, including strengthening our existing presence in the UK where MedicalDirector has been establishing itself in recent years,” he added.

The Telstra share price is up 26% in 2021.

The post Telstra (ASX:TLS) share price in focus after announcing $350m MedicalDirector acquisition 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 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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