Tag: Motley Fool

The Qantas Airways Limited (ASX: QAN) share price is gaining this morning, despite no news having been released by the company.

However, the ASX 200 travel giant isn’t alone in the green. Many of its peers are also seeing gains this morning amid news Victoria and South Australia are preparing to end their lockdowns.

Right now, the Qantas share price is $4.72, 2.61% higher than its previous close.

That’s particularly impressive when compared to the broader market.

Currently, the S&P/ASX 200 Index (ASX: XJO) is up 0.39%, while the All Ordinaries Index (ASX: XAO) is gaining 0.37%.

Let’s take a closer look at the Qantas share price’s moves today.

Lockdowns ending, ASX 200 travel shares up

While Sydney is still in the midst of a battle against COVID-19’s delta strain, Victoria and South Australia are set to gain a semblance of normality from midnight tonight.

Whether the good news for the 2 southern states is reflecting in the Qantas share price isn’t clear.

However, Qantas isn’t alone in having a good day on the ASX. The airline’s ASX 200 travel peers are also being boosted higher.

The Webjet Limited (ASX: WEB) share price is currently up 2.07%, while shares in Flight Centre Travel Group Ltd (ASX: FLT) are 1.73% higher.

Unsurprisingly, the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price isn’t taking part in today’s sea of green. It’s down 0.38% at the time of writing.

Qantas share price snapshot

Despite today’s gains, the Qantas share price isn’t out of the red yet.

Right now, shares in Qantas are trading for 3.4% less than they were at the start of 2021. However, they are going for 28.8% more than they were this time last year.

The airline has a market capitalisation of around $8.6 billion, with approximately 1.8 billion shares outstanding.

The post The Qantas (ASX:QAN) share price gained 3% on Tuesday morning appeared first on The Motley Fool Australia.

More reading

• Plumbing, health, tech: 3 ASX shares to buy for instant diversification
• Webjet (ASX:WEB) share price weakens as COVID cases continue
• Why a2 Milk, Cann, Flight Centre, & GPT shares are tumbling lower
• Flight Centre (ASX:FLT) share price slides amid news Sydney lockdown could last until September
• These are the 10 most shorted ASX shares

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 Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/376mRTD

It’s head above the clouds for the BHP Group Ltd (ASX: BHP) share price.

Shares in the iron ore major opened 3.06% higher to a record high of $53.50 on Tuesday.

At the time of writing, the BHP share price is up 2.72% to $53.32.

Why the BHP share price continues to set all-time highs

Chinese iron ore prices make headway this week

Last week was a volatile week for the BHP share price, battling both challenges from the broader S&P/ASX 200 Index (ASX: XJO) and iron ore markets.

Iron ore prices on China’s Dalian Commodity Exchange experienced their steepest weekly drop in 17 months last Friday after authorities imposed steel production caps in multiple cities.

According to Mining.com, “Steel producers in Anhui, Gansu, Fujian, Jiangsu, Jiangxi, Shandong, and Yunnan have been told to limit their output to 2020 volumes amid China’s intensified efforts to curb carbon emissions.”

This could be a reason why the BHP share price tumbled 5.07% from $51.87 to $49.24 between Monday and Tuesday last week.

Encouragingly, the most-traded September iron ore futures contract in China has tipped higher this week from approximately US$172 to US$178.

Commentary from Navigate Commodities managing director Atilla Widnell, reported by Mining.com said:

We’re fundamentally and technically bullish in the short term, with arrivals of iron ore cargoes landing in China expected to fall faster than domestic consumption over the past and coming week.

There certainly isn’t sufficient supply availability from the seaborne market to feed Chinese steel consumption growth in the second half, particularly for long products.

It’s not just iron ore that’s pushing higher

While iron ore is a driving factor behind the BHP share price, the company is a diversified producer of petroleum, copper, coal and nickel.

Commodity prices, more broadly speaking, have rallied strongly across the board since the initial COVID-19 selloff in 2020.

Bloomberg’s commodity index, a basket of energy, metal and agriculture prices, has rallied 41.08% in the past 12 months and 23.8% year-to-date to a 5-year high.

The post BHP (ASX:BHP) share price hits new all-time high on Tuesday appeared first on The Motley Fool Australia.

More reading

• Lynas share price soars, BHP and Rio on watch, A2 on the naughty list. Scott Phillips on Nine’s Late News
• What to expect from the ASX 200 during earnings season
• BHP (ASX:BHP) share price lifts amid news $7.5b project will proceed
• Here’s why the BHP (ASX:BHP) share price is up almost 10% in a month
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs

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.

from The Motley Fool Australia https://ift.tt/3l5u7aF

Santos Ltd (ASX: STO) shares have had a choppy year to date, posting a return of 4% since January 1.

It’s certainly been interesting times for the oil and gas giant of late.

This earnings season, there are several key inflection points Santos shareholders might consider examining in a bit closer detail.

What could impact Santos shares during reporting season?

We discuss three of the key points below:

Oil Search merger

On 20 July, Santos confirmed that it had submitted a $23 billion merger proposal to the Oil Search Ltd (ASX: OSH) board in late June.

The proposal originally implied a transaction price of $4.25 per Oil Search share, which represented a 12.3% premium at the time.

According to Santos, merging the 2 oil and gas giants “is a logistical combination of two industry leaders to create an unrivalled regional champion of size and scale”.

Oil Search pushed back and claimed the proposal “did not offer appropriate value for Oil Search shareholders or as a basis on which discussions should be progressed”.

Since this time, Oil Search has again stipulated the offer must be in favour of its shareholders in order to close the transaction.

Santos’ proposal now stands at a ~7.6% premium to Oil Search’s share price at close yesterday. It also stands to reason Oil Search will continue to fight for a better deal for its shareholders.

Oil Search interim chief executive Peter Fredricson recently said of the Santos offer:

It’s a little bit like someone wants to gets engaged and give you a diamond ring but we gave the diamond ring back and said no thanks. They need to come back with a couple more carats in the diamond ring.

The saga continues in the merger narrative for these two entities.

Record production rates at new well

Santos reported on 26 July it had produced the “highest initial rate from an individual well in field history” at its production well at the Van Gogh Phase 2 development in Western Australia.

The well produced a peak rate of 23,000 barrels of oil per day, “well ahead of expectations” according to Santos.

Santos has the majority 52.5% interest at Van Gogh, with the remainder owned by Inpex Corp.

High oil prices driving revenue

Santos recognised record revenue in 1H 2021, reaching quarterly sales revenue of $1.5 billion that led to a record $2.76 billion for the half.

The crude oil obtained at Van Gogh is set to return a premium above Brent Crude, enabling “further value to be realised beyond the current oil price”, according to Santos chief executive Kevin Gallagher.

Gallagher explained in the report that high commodity prices in the oil and gas spot markets had been a key catalyst to Santos’ revenue this year.

Santos also upgraded its guidance on full-year production, bumping estimates up to a range of 87 – 91 million barrels of oil for the year.

Foolish takeaway

The Santos share price has had an interesting walk through 2021 so far.

Perhaps the talking point on everyone’s lips is the ongoing merger saga with Oil Search.

In addition to this, investors may also want to consider the pricing impacts of the oil and gas markets on Santos’ share price.

Despite the recent event-driven momentum, Santos shares are down almost 10% over the last month.

Investors can expect Santos’ audited results to be released on Tuesday, 17 August.

The post Own Santos (ASX:STO) shares? What to look out for this reporting season appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: BlueScope & OZ Minerals updates impress
• Oil Search (ASX:OSH) share price rises on solid Q2 update
• 5 things to watch on the ASX 200 on Tuesday
• Santos (ASX:STO) share price sinks despite record first oil announcement
• Oil Search (ASX:OSH) share price falls as boss demands bigger ‘diamond’

Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/3zE2XeN

The Wesfarmers Ltd (ASX: WES) share price has had a tremendous month thus far.

Since the start of July, shares in Wesfarmers have soared around 7% and are currently trading near record highs.

There have been several catalysts that have made Wesfarmers a top performer on the S&P/ASX 200 Index (ASX: XJO).  

Let’s take a look at what’s propelled the Wesfarmers share price.  

Investors embracing Wesfarmers strategy

With the Wesfarmers share price trading at record highs, it can be assumed that investors are embracing the conglomerate’s ambitious growth strategy.

The company recently reiterated its priorities of investing in new growth platforms and selling unwanted assets.

Wesfarmers, which operates household banners such as Bunnings, K-Mart, Officeworks and Target plans to leverage and scale its unique assets.

In addition, Wesfarmers has also managed to divest its coal business and expand into the burgeoning lithium sector. Recently, the company’s Mt Holland lithium project received ministerial approval.

Earlier this year, Wesfarmers demonstrated the potential of its growth strategy by reporting strong half year results.

The company delivered a 25.5% increase in net profit after tax of $1,414 million. This was fuelled by a 16.6% increase in revenue for the 6 months of $17,774 million.

Wesfarmers plans expansion into pharmaceuticals

The Wesfarmers share price recently received a boost following its proposed expansion into the pharmaceutical sector.

Earlier this month, the company launched a $687 million offer for Australian Pharmaceutical Industries Ltd (ASX: API).

The offer slated by Wesfarmers is to acquire 100% of API’s shares outstanding for $1.38 cash per share by way of a scheme for arrangement.

Wesfarmers management cited that the proposed acquisition of API would provide the company an attractive opportunity to enter the $25 billion pharmaceutical, beauty and wellbeing sector.

Wesfarmers cited the strong competitive position of API and intends to bring its capital and unique capabilities to support further investment.

The deal is subject to due diligence, ACCC clearance and approval from the API board and shareholders

Snapshot of the Wesfarmers share price

As highlighted earlier, the Wesfarmers share price has stormed around 7% higher in July to record highs. Overall, shares in Australia’s second largest retailer have soared around 22% higher since the start of the year.

The post Here’s why the Wesfarmers (ASX:WES) share price is up 7% in a month appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• Here’s what the Wesfarmers (ASX:WES) dividend will pay you today
• Wesfarmers (ASX:WES) share price up as Catch involved in ACCC inquiry
• What a Wednesday! Wesfarmers (ASX:WES) share price hits new all-time high
• Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News

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

from The Motley Fool Australia https://ift.tt/3rBxAyF

The Prescient Therapeutics Ltd (ASX: PTX) share price is having a lacklustre day, despite a positive readout on its PTX-100 trial.

Prescient shares dipped into the red in morning trade. However, at the time of writing they are exchanging hands for 22 cents a piece, the same as yesterday’s closing price.

Let’s take a look at what Prescient released this morning.

Quick refresher on Prescient Therapeutics

Prescient is a clinical stage oncology company that researches, develops and commercialises new cancer treatments.

It has expertise in the treatment of myeloma, pancreatic and breast cancer. It also collaborates with larger players to develop its proprietary products.

Prescient has a market capitalisation of $138 million at the time of writing.

PTX-100 basket trial results

Prescient released the readouts from its PTX-100 phase 1b basket trial earlier today. The purpose of a phase 1b trial is to determine the optimal safe dose for a new therapy.

As such, the trial examined the safety of the PTX-100 compound, which Prescient is studying for solid and haematological tumours.

In the trial, PTX-100 “exhibited an excellent safety profile … up to and including the highest dose”, with no adverse events “deemed serious, nor related to PTX-100”.

Another takeout is that two patients also received a “clinical benefit” after a run of failed prior treatments for their condition.

Both patients benefitted from “symptomatic relief” and a “reduction in cancer burden with no disease progression”.

Prescient now intends to begin a cohort study to develop PTX-100 as a monotherapy, hoping to create a “potentially shorter regulatory path” for the compound.

Investors can expect further readouts from this study in the coming quarter, as per the company.

Prescient share price snapshot

The Prescient Therapeutics share price has posted a year-to-date return of about 215%, extending the previous 12 month’s return of 268%.

These returns have far outpaced the S&P / ASX 200 Index (ASX: XJO)’s return of 23% over the past year.

The post Prescient Therapeutics (ASX:PTX) share price flat after trial success news appeared first on The Motley Fool Australia.

More reading

• The Prescient (ASX: PTX) share price is surging 12%. Here’s why
• Why is the Prescient (ASX:PTX) share price down 16% this week?
• The Prescient (ASX:PTX) share price rocketed 10% higher today. Here’s why

Motley Fool contributor Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/2VicXf6

At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on form and pushing higher. The benchmark index is currently up 0.4% to 7,424.3 points.

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

BlueScope smashes expectations

The BlueScope Steel Limited (ASX: BSL) share price has been on form today following the release of its preliminary full year results. The steel producer had a strong second half and expects to report full year underlying EBITDA of ~$1.72 billion. This has been driven by a second half EBITDA result of $1.19 billion, which was ahead of its guidance of $1 billion to $1.08 billion. Strong demand and pricing drove the impressive result.

OZ Minerals delivers strong Q2 update

The OZ Minerals Limited (ASX: OZL) share price is racing higher today after the release of its second quarter update. The copper producer was on form during the quarter, leading to positive revisions to its FY 2021 guidance. OZ Minerals has increased its gold production guidance and reduced its cash costs guidance.

Oil Search Q2 update

The Oil Search Ltd (ASX: OSH) share price is edging higher today. This follows the release of the energy producer’s second quarter update. While Oil Search reported a quarter on quarter decline in production, improved pricing underpinned a 21.5% quarter on quarter increase in operating revenue to US$366.2 million. Oil Search also reaffirmed its FY 2021 production, operating costs, and capital expenditure guidance.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday is the OZ Minerals share price with a sizeable 8.5% gain. This follows its strong second quarter update. The worst performer on the ASX 200 today has been the A2 Milk Company Ltd (ASX: A2M) share price with a 3% decline. Investors have been selling the infant formula company’s shares this week amid concerns over potential regulatory changes in China.

The post ASX 200 midday update: BlueScope & OZ Minerals updates impress appeared first on The Motley Fool Australia.

More reading

• Why the BlueScope (ASX:BSL) share price hit a record high today
• Why the OZ Minerals (ASX:OZL) share price is jumping 10% on Tuesday
• Oil Search (ASX:OSH) share price rises on solid Q2 update
• Lynas share price soars, BHP and Rio on watch, A2 on the naughty list. Scott Phillips on Nine’s Late News
• 5 things to watch on the ASX 200 on Tuesday

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 A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3x6q4Nq

The Alcidion Group Ltd (ASX: ALC) share price is delivering gains to shareholders on Tuesday.

At the time of writing, the healthcare software provider’s shares are swapping hands for 40.5 cents, up 14%.

Why is the Alcidion share price surging ahead?

The release of the company’s fourth-quarter result has lit a fire under the Alcidion share price today. A big contributor to the excitement for investors is the record revenue for FY21, positive operating cash flow, and increased market share.

According to the release, the company achieved $25.6 to $25.9 million in revenue for FY21. This represents an increase of between 38% to 39% on the prior corresponding period. The company achieved this revenue growth despite challenges posed by COVID-19.

Additionally, the company achieved a positive net operating cash flow of $1.6 million in the fourth quarter. Likewise, full-year operating cash flow came out at $1.1 million.

New and renewed contracts during the quarter came to a total contract value of $7.3 million. Impressively, this reflects a 52% uplift from Q3 and nearly double that of the prior corresponding period.

Another positive was its 18% jump to $15.1 million in contracted revenue to be recognised in the coming year. Approximately 72% of this contracted revenue is recurring in nature – this includes subscription fees, product license fees, etc.  

Management commentary

Commenting on the record result, Alcidion’s Managing Director, Kate Quirke said:

Alcidion has delivered a strong final quarter to close an exceptional year of growth. FY21 revenue is expected to be in the range of $25.6M-$25.9M, a record result for the company despite being generated in challenging circumstances under the backdrop of COVID-19, particularly in the UK. Pleasingly, we delivered positive operating cashflow in Q4 and for the full year, highlighting the shift into a sales acceleration phase. ExtraMed contributed $600k to this revenue, being 2.5 months’ worth of activity

Quirke added:

We have been able to increase market share across all our core geographies, signing important new and renewed contracts that provide a solid foundation heading into the new financial year. It was particularly pleasing to extend the contract with Western Health for the provision of Miya and to sign contracts to continue to provide integration services to NSW Health. Contract renewals signify customer satisfaction and the positive relationship the company has with its customers.

Cash position

Thanks to a positive cash flow period, Alcidion finished the quarter with $25 million in cash on hand. This compares to $15.9 million in the prior year. Over the past year, the company has taken advantage of its spare cash to make accretive acquisitions, such as the ExtraMed acquisition in April.

At the time of writing, the Alcidion share price indicates a market capitalisation of $419 million.

The post Alcidion (ASX:ALC) share price jumps 14% on solid earnings appeared first on The Motley Fool Australia.

More reading

• ‘That hurts’: Fund manager reveals his 35-bagger ‘failure’
• 3 growing small cap ASX shares to watch
• 4 fast-growing ASX small cap shares that you may have overlooked

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

from The Motley Fool Australia https://ift.tt/2URSNsj

The Hastings Technology Metals Ltd (ASX: HAS) share price is pushing higher during morning trade. This comes after the emerging rare earths producer announced an update on the Ore Reserves Estimate at its Yangibana Rare Earths Project.

At the time of writing, Hastings shares are up 2.70% to 19 cents. In comparison, the All Ordinaries Index(ASX: XAO) is up 0.3% to 7,696 points.

Hastings significantly increases Ore Reserve Estimate

In today’s statement, Hastings advised that it has increased the Total Proven and Probable Ore Reserves at Yangibana. Successful exploration activities during last year have led the company to revise its estimate.

Hastings revealed that the total Ore Reserve has significantly increased to 16.7 million tonnes at 0.95% Total Rare Earths Oxide (TREO). This is a 37% improvement in the Ore Reserve tonnes compared with the previous Ore Reserve Estimate announced in 2019.

Most notably, the company stated that TREO tonnes rose 15% to 158,400 tonnes. This is exceptionally important as the ore contains Neodymium and Praseodymium (NdPr). These elements are both key components in the electric vehicle industry.

Hastings targeted 5 of the 10 deposits at Yangibana during its 2020 exploration program. Extensive drilling comprised of 341 reverse circulation (RC) holes for a total depth of 23,739 meters. In addition, 46 diamond holes totalled more than 1,605 meters.

Diamond drilling is a more efficient way for precise sampling and analysis, whereas RC drilling is used for extracting bulk samples. When it comes to speed, RC drilling is the faster method, however, diamond drilling is employed when seeking accurate results.

Based on the findings, Hastings extended the mine life to a minimum of 15 years. Ore sorting technology is expected to be sourced in Yangibana’s mine development for processing the ore.

In addition, the company is aiming to secure debt financing to begin construction activities in the second-half of 2021.

What did management say?

Hastings executive chair, Charles Lew commented:

I am delighted to announce this significant increase in the Ore Reserve at Yangibana, which is the result of our successful exploration programs across existing and new deposits last year and will allow us to plan for a mine operating life of at least 15 years.

Importantly, there remains substantial mineral resource upside potential at Yangibana, which we will further assess in due course.

Hastings share price snapshot

Over the last 12 months, the Hastings share price has posted a gain of around 50%, with year-to-date up 10%.

Hastings presides a market capitalisation of roughly $330 million, with approximately 1.7 billion shares on its books.

The post Why the Hastings (ASX:HAS) share price is edging higher today appeared first on The Motley Fool Australia.

More reading

• What these 5 outperforming ASX shares have in common

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.

from The Motley Fool Australia https://ift.tt/3eZNgqv

On Monday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Centuria Office REIT (ASX: COF)

According to a note out of UBS, its analysts have downgraded this property company’s shares to a sell rating with a $2.25 price target. The broker made the move on the belief that it will take longer than first hoped for rents to recover due to recent lockdowns. And with reporting season just around the corner, it suspects that outlook statements will be reasonably pessimistic. The Centuria Office REIT share price is trading at $2.41 today.

Xero Limited (ASX: XRO)

A note out of Macquarie reveals that its analysts have downgraded this cloud accounting platform provider’s shares to an underperform rating with a $130.00 price target. The broker notes that Xero now has over 50% market share in the ANZ region. While this is quite an achievement, it means its local growth opportunities are reducing. As a result, Macquarie expects a sharp slowdown in ANZ subscriber growth to low single digits in the near future. In light of this, it finds it hard to justify its current valuation and has downgraded its shares. The Xero share price is fetching $141.04 today.

Zip Co Ltd (ASX: Z1P)

Another note out of Macquarie reveals that its analysts have retained their underperform rating but lifted their price target on this buy now pay later provider’s shares to $6.15. This follows the release of the company’s fourth quarter update. Macquarie notes that Zip’s customer additions in the United States slowed during the quarter. It also sees risks from the company’s plan to rebrand the QuadPay business as Zip. The Zip share price is trading at $6.77 on Tuesday.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Zip (ASX:Z1P) share price tumbles 4% on Monday. Here’s why
• These are the 10 most shorted ASX shares
• 6 ASX shares to rocket when COVID Delta passes
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• Why Zip (ASX:Z1P) and this explosive ASX growth share could be buys

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 Xero and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3f1L7ux

The Japara Healthcare Ltd (ASX: JHC) share price is gaining this morning after the company released the latest news of its takeover offer.

The offer would see the residential aged care operator acquired by Little Company of Mary Health Care Ltd (Calvary).

Right now, the Japara share price is 18.45% higher than its previous close. Shares in the company are currently swapping hands for $1.38 apiece.

Let’s take a closer look at today’s news from Japara.

Japara recommends accepting takeover offer

The Japara share price is shooting higher after it announced it’s entered a scheme of implementation deed for Calvary to purchase all Japara’s shares.

The Japara board has unanimously recommended shareholders vote in favour of the scheme.

The offer would see each Japara shareholder receiving $1.40 of cash per share. That represents a 75% premium on the Japara share price’s close on 29 April 2021.

The market first heard news of the acquisition on 30 April, leading the Japara share price to gain 26%.

The offer also represents an 81% premium on the 30-day volume weighted average price prior to 30 April.

Calvary is a Catholic not-for-profit organisation. It operates 14 hospitals, 17 retirement and aged care facilities, and a network of community care centres.

The scheme is conditional upon factors including Japara not receiving a better offer, an independent expert concluding the scheme is in shareholders’ best interests, and shareholder approval.

Japara shareholders will have the chance to vote on the scheme in October 2021.

Japara Healthcare share price snapshot

2021 has been a good year so far for Japara’s shares.

Right now, they’re trading for 121% more than they were at the start of the year. They are also swapping hands for 175% more than they were this time last year.

The company has a market capitalisation of around $311 million, with approximately 266 million shares outstanding.

The post Japara (ASX:JHC) share price soars 18% on takeover news appeared first on The Motley Fool Australia.

More reading

• 2 top ASX growth shares reporting strong growth
• Freelancer (ASX:FLN) share price dives 16% after first-half results
• Why the IGO (ASX:IGO) share price is moving higher today
• Why the BlueScope (ASX:BSL) share price hit a record high today
• Dubber (ASX:DUB) share price slides 7% after successful $110 million capital raising

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.

from The Motley Fool Australia https://ift.tt/3iV1ief