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The legendary investor Warren Buffett – chair and CEO of Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) – is famous for his coinage of the term ‘moat’.

He explained his criteria for a moat as follows in his 2007 annual letter to the shareholders of Berkshire Hathaway:

It’s better to have a part interest in the Hope Diamond than to own all of a rhinestone. A truly great business must have an enduring ‘moat‘ that protects excellent returns on invested capital. The dynamics of capitalism guarantee that competitors will repeatedly assault any business ‘castle’ that is earning high returns.

Therefore a formidable barrier such as a company’s being the low-cost producer (GEICO, Costco) or possessing a powerful world-wide brand (Coca-Cola, Gillette, American Express) is essential for sustained success. Business history is filled with ‘roman candles’, companies whose moats proved illusory and were soon crossed.

Now, not to disparage the talents of any readers out there, but Buffett is an investor of the ‘one-of-a-kind’ variety. It’s easy to sit there and come up with a list of businesses that you might see as possessing such a moat. It’s harder though to come up with an annual return in one’s share portfolio exceeding 20% per annum for decades on end (as Buffett has done).

Thus, one option to consider in Buffett’s stead today is the VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT).

MOATs all round

MOAT is an exchange-traded fund (ETF) that sits on our own ASX. However, it is an ETF that only invests in US shares. Not just any US shares though. MOAT tracks an index constructed by Morningstar, which holds only shares that it sees as possessing the kind of competitive advantages that Buffett describes above.

In determining the presence of a ‘moat’, Morningstar considers 5 sources of sustainable competitive advantage: intangible assets (for example, brands or intellectual property), switching costs, network effect, cost advantage and efficient scale.

At the present time, MOAT holds 48 stocks and charges a management fee of 0.49% per annum. Amongst this ETF’s current portfolio are companies like Tiffany & Co (NYSE: TIF), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), Kellogg Company (NYSE: K), Harley Davidson Inc (NYSE: HOG),  American Express Co (NYSE: AXP), and Coca-Cola Co (NYSE: KO). You might recognise those last 2 companies from the names Buffett lists above.

All of these companies evidently fit into Morningstar’s definition of having a moat, for various reasons. Think about the brands that companies like Kellogg, Harley Davidson and Tiffany have. Or the costs of switching away from Microsoft’s Windows and Office products. Or the scale of Amazon.

MOAT is currently rated as a ‘buy’ by the Motley Fool’s flagship Share Advisor service. Scott Phillips and the Share Advisor team like MOAT’s international exposure, the diversification it brings to the table, as well as the “exposure to Buffettesque businesses at a good price”.

More reading

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• Warren Buffett bought 4 pharma giants in Q3
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• 2 leading ETFs to buy for global returns
• Don’t listen to me. Listen to Charlie Munger…

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of American Express, Kellogg, Coca-Cola, and Procter & Gamble. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Berkshire Hathaway (B shares), and Microsoft and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and short December 2020 $210 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Amazon and Berkshire Hathaway (B shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) went up again today. It rose by 0.5% to 6,531 points.

South Australia goes into lockdown

The South Australian government has announced heavy lockdowns as of midnight tonight for six days to try to get the COVID-19 outbreak under control.

People are restricted from leaving the house for six days, apart from access essential services. South Australians won’t be allowed to leave the home for exercise. Masks will be required in all areas outside the home.

All takeaway food, pubs, cafes restaurants and so on will be shut. Universities will be closed. All schools will be closed except for children of essential workers and vulnerable children. One person per household will be allowed to go grocery shopping once a day.

Many other businesses will be closed during this period including real estate open inspections, construction, weddings, funerals and FIFO work.

However, many essential services will remain open including critical infrastructure (water, power and telecommunications), supermarkets, medical services, public transport, the airport, freight services, petrol stations, certain mining, smelting and large factories, childcare for essential workers, veterinary surgeons and agriculture.

Crown Resorts Ltd (ASX: CWN)

Earlier today, according to reporting by the Australian Financial Review, the major casino business has admitted to a NSW inquiry that it is more probable than not that criminals laundered money through two of its shell bank accounts.

It’s reported that independent reviews had found that cuckoo smurfing had likely occurred in the company’s accounts, which were set up to handle debts owed by VIP gamblers. Cuckoo smurfing is a type of money laundering where innocent parties make and receive legitimate payments but illicit funds are inserted into the process.

Crown Resorts shares then went into a trading halt. The NSW gaming regulator decided to wait until the inquiry into Crown gives its final report in February before allowing gambling at the site. 

The Crown share price was down 0.6% before the trading halt. 

Aristocrat Leisure Limited (ASX: ALL)

The gambling machine and digital gaming business announced its FY20 result today.

The ASX 200 company reported that its revenue declined by 5.9% to $4.14 billion. Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 31.8%, normalised net profit after tax dropped 52.6% to $357.1 million and normalised earnings per share (EPS) went down by 52.5% to 74.7 cents.

Reported net profit after tax, which includes the recognition of a deferred tax asset worth approximately $1.1 billion, increased 97.2% to $1.38 billion. Operating cash flow decreased by 5.8% to $1.02 billion.

Aristocrat’s total dividend per share was cut by 82.1% to 10 cents per share. However, its closing net debt position improved by 29.5% to $1.57 billion.

The Aristocrat share price rose around 4% today.

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price dropped by around 5% today after the business held its annual general meeting (AGM).

The ASX 200 business is maintaining its guidance for the FY21 half year and full year results. It’s still expecting total revenue for the first half of FY21 to be between NZ$725 million to NZ$775 million. FY21 total revenue is expected to be between NZ$1.8 billion to NZ$1.9 billion. The FY21 EBITDA margin is expected to be in the order of 31%.

A2 Milk said that due to the volatility arising from COVID-19 and the difficulties this presents with forecasting, there is uncertainty to this forecast.

The business said that this outlook includes a significant increase in revenue in the second half, which is dependent on a number of key assumptions, including an improvement in the daigou channel and continued growth of the China label business.

But A2 Milk commented that it has observed strong underlying brand health metrics, in particular in China, including market share expansion, and growth of brand awareness and loyalty measures. A2 Milk said that this gives management confidence that, notwithstanding the current headwinds, the fundamentals of the business over the medium term remain sound.

More reading

• Crown (ASX:CWN) share price on watch after being told to delay Crown Sydney opening
• 2 ASX shares making all-time highs today
• ASX stock of the day: Redbubble (ASX:RBL) shares up 5% today
• Why ASX tech shares should fly long after this crisis is over
• Morgan Stanley updates its share price targets for the big 4 banks

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Dexus Property Group (ASX: DXS) share price rose marginally higher today after the company announced the sale of its Grosvenor Place in Sydney. Dexus shares closed the day up 0.31% at $9.85 per share.

What did Dexus announce today?

Dexus advised that it has conditionally exchanged contracts to sell a 50% stake in Grosvenor Place, Sydney. Its 50% claim in the building comprises a split ownership by Dexus and Dexus Office Partnership, which Dexus also holds a 50% interest in.

Grosvenor Place is a 44-level office tower that contains a ground floor retail, built in 1988. The property has a leasehold with 78 years remaining. At the end of the financial year, occupancy rates were recorded at 89% with a weighted average lease expiry of 3.4 years. Dexus acquired an initial interest in Grosvenor Place in 2013, generating an annual return of 12%.

The sale of the office building will realise total net proceeds of $925 million for the entire 50% interest. However, due to current vacancy and the short-term leasing risk in the building, Dexus received $694 million. This represents a 5% discount on the property’s book value as at 30 June.

Dexus highlighted that the transaction was finalised following an on-market campaign, in which over $803 million in sales were conducted. The purchaser of the building is an existing co-owner. Settlement will conclude early next year, pending approval from the foreign investment review board.

The company advised that the net proceeds of the sale will be used to repay its debt. 

What did management say?

Dexus chief investment officer Mr Ross Du Vernet commented on the sale:

This transaction continues our asset recycling strategy, realising value for both Dexus and our Dexus Office Partner.

The sale further strengthens our balance sheet and enables us to organically fund higher return growth initiatives in our funds and development businesses. It also provides improved capacity to undertake capital management initiatives should there be a continued disconnect between public and private markets.

About the Dexus share price

The Dexus share price has fallen from grace since COVID-19 hit the Australia property sector. Shares in the group plummeted from the $13.51 reached in February to as low as $8.03 in the aftermath.

Dexus has a current market capitalisation of $10.7 billion and a price-to-earnings (P/E) ratio of 11.1.

More reading

• 3 ASX dividend shares rated as buys by brokers
• Why REITs led the pack on the ASX today
• ASX property shares buoyed by latest market data
• Investors rejoice as AMP (ASX:AMP) share price rockets 20% on takeover
• These beaten-up shares are about to pick up: Moody’s

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australian Financial Review hosted its annual Banking and Wealth Summit today, which brings together a forum of banking and wealth leaders, regulators, and policymakers to debate the future of Australia’s financial services. Today’s summit was hosted digitally. 

Here are some takeaway highlights.

Buy now, pay later industry ‘a potential threat’

Commonwealth Bank of Australia (ASX: CBA) chief executive Matt Comyn says that the buy now, pay later (BNPL) industry, especially its leading player Afterpay Ltd (ASX: APT), is a potential threat to the banking sector over time. The comment comes after data released on Monday showed that the BNPL sector had almost doubled in just two years. The data showed that transaction numbers using the BNPL platform had spiked by 90%, rising from 16.8 million in 2017-18 to 32 million today. 

However, Mr Comyn insists that instalment payments made to a BNPL providers should be treated as credit – and that the whole sector should be subject to the same set of regulations imposed to other credit lenders, including the CBA. 

“When you open a buy now, pay later account and it said you are approved for $1000, that sounds like credit to me … We believe that regulation is inevitable but not imminent,” he says.

Pandemic has permanently changed working arrangements

The coronavirus pandemic has permanently changed the way bank employees work, according to CBA and National Australia Bank Ltd (ASX: NAB). CBA’s Comyn says that the pandemic has accelerated workplace flexibility, but still expects customer-facing employees to return to the office in the near future.

NAB chief executive Ross McEwan echoes this sentiment and says that 80% of its staff have signalled they want a more flexible working arrangement going forward. Mr McEwan says, “They’ve proved they can do the job brilliantly from home… and I think we can find that balance so that it’s actually a win-win for everyone.”

NAB says economy is bouncing back fast, but warns on property market

NAB’s McEwan says that news of the vaccines have brought more certainty to the markets, and believes that Australia is on the road to recovery:  “We’re now expecting the economy to get back to pre-COVID levels by late 2021, much earlier than we originally thought.” 

However Mr McEwan was less optimistic about the state of the apartment market in city centres, saying that the outer suburb properties will outperform as people move further away from crowded areas.  

During the summit, NAB has communicated via its Twitter account that all of its branches have been closed due to a physical security threat.

ASIC to be tougher on enforcement as it files criminal charges

Corporate regulator Australian Securities and Investment Commission (ASIC) says that it’s “getting on with it” after being given powers by parliament that will put the onus on industry to self regulate.

The comment came after Treasurer Josh Frydenberg told ASIC to steer away from policy making and focus on enforcement, saying “stop sending psychologists into boardrooms”. In response, ASIC says that it’s currently pursuing two dozen criminal charges on individuals and companies. Of the 13 royal commission referrals made to ASIC to pursue, just two remain under investigation.

APRA to change bank capital rules

The Australian Prudential and Regulations Authority (APRA) chairman Wayne Byres says that it will make some changes to the way capital is calculated, without changing the ultimate level of capital that banks need to hold. “Probably the most fundamental change from the proposals is that bank capital adequacy ratios will change, specifically they will tend to be higher,” Mr Byres says.

Treasurer Frydenberg slams regulators

Mr Frydenberg opened the summit this morning by reprimanding regulators for “over-zealous activity that has crippled lending”. The treasurer says the government wants to move away from ‘lender beware’ regulations to one where blame is not placed fully on banks when a loan goes sour. This, he says, will allow credit to flow to consumers more easily.

Mr Frydenberg says:

We want to cut red tape. But this is not about trying to help the banks – the banks are not my constituency. This is about helping consumers. I am seeking from regulators that they are not making policy, that they are not overreaching. I want to see them enforce the law, that would be better time spent than sending psychologists into the board room quite frankly.

The treasurer was optimistic, saying that Australian consumer confidence was up for the 11th straight week, the Australian dollar is back to where it was pre-COVID, and there has been no run on banks during the pandemic. 

More reading

• Morgan Stanley updates its share price targets for the big 4 banks
• Afterpay (ASX:APT) share price under pressure by US BNPL giant
• ASX 200 up 0.35%: Aristocrat FY 2020 results, big four banks higher, a2 Milk update
• Here’s the ASX bank share rated as a conviction buy
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Motley Fool contributor Eddy Sunarto owns shares of Commonwealth Bank of Australia. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The SKYCITY Entertainment Group Limited (ASX: SKC) share price was out of form on Wednesday and dropped lower.

The casino and resorts operator’s shares ended the day 0.35% lower at $2.88.

This compares to a 0.5% gain by the the S&P/ASX 200 Index (ASX: XJO).

Why did SKYCITY share price drop lower?

The SKYCITY share price came under pressure on Wednesday after it announced that it would be forced to close its Adelaide-based casino and entertainment facilities from midnight tonight.

This follows an announcement by the South Australian government earlier today that revealed a range of new state-wide COVID-19 restrictions that are being implemented to prevent the spread of the virus following a recent outbreak.

As things stand, SKYCITY is expected to close its Adelaide operation for six days until midnight on 24 November.

In light of this, the company advised that the opening of its new $330 million expansion development, which includes a 120-room luxury hotel, will now be delayed until further notice.

Positively, the company’s New Zealand operations are unaffected and remain open at Alert Level 1.

What else is happening?

SKYCITY isn’t the only casino and resorts operator that is being forced to delay the opening of new facilities.

This afternoon the New South Wales Independent Liquor and Gaming Authority (ILGA) revealed that it will prevent Crown Resorts Ltd (ASX: CWN) from opening its new Crown Sydney operation in December as previously planned.

This is in response to Crown admitting at an inquiry that it was likely that money laundering had occurred through accounts it set up for its VIP players.

NSW ILGA’s chairman, Philip Crawford, commented: “Because when we talk about money laundering … we’re talking about potential drugs, child sexual exploitation, people trafficking and financing terrorism … you can see why we have concern.”

“In light of this, we did not consider it appropriate to determine the applications before the Authority until the findings of the Bergin Inquiry,” he concluded.

The findings of this inquiry are not expected to be released until February.  

More reading

• Why Aurelia Metals, PolyNovo, SKYCITY, & Tyro shares are dropping lower
• ASX 200 up 1.2%: Afterpay ASIC response, Elders result, CSL vaccine facility

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited and Sky City Entertainment Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Crown Resorts Ltd (ASX: CWN) share price will be on watch tomorrow if it returns from its trading halt.

Why is the Crown share price in a trading halt?

The casino and resorts operator requested a trading halt this afternoon pending the release of a response to a letter received from the New South Wales Independent Liquor and Gaming Authority (ILGA).

This letter is in relation to the long-awaited opening date of Crown Sydney in Barangaroo.

What is happening?

This afternoon the New South Wales ILGA held a press conference which revealed that it will prevent the casino and resorts operator from opening Crown Sydney in December as previously planned.

According to the ABC, the gambling regulator has said that it is “not comfortable” with Crown operating the $2.2 billion development at Barangaroo due to comments at an ongoing inquiry.

At the inquiry, the company admitted that it was likely that money laundering had occurred through accounts it set up for its VIP players.

What now for Crown?

NSW ILGA’s chairman, Philip Crawford, said the regulator was not comfortable with the company operating its gaming operations until it received the findings from the ongoing inquiry.

This could mean a reasonably lengthy and costly delay for the company. Commissioner Patricia Bergin, SC, is looking into Crown’s appropriateness to hold the licence, but her final report is not due to be released until February 2021.

Commenting on the money laundering concerns, Mr Crawford said: “We had no notice that was being done, I don’t think the Bergin inquiry or counsel assisting were aware of it and it’s come at the eleventh hour, literally — apparently 11:00 last night.”

“Because when we talk about money laundering … we’re talking about potential drugs, child sexual exploitation, people trafficking and financing terrorism … you can see why we have concern,” he added.

“In light of this, we did not consider it appropriate to determine the applications before the Authority until the findings of the Bergin Inquiry,” he concluded.

More reading

• ASX 200 jumps 1.75% on Monday
• Crown (ASX:CWN) share price up as Melbourne casino set to reopen
• Crown (ASX:CWN) share price bucked bad news to rise 6% last week
• Crown Resorts (ASX:CWN) share price edges upward after AGM results
• Broker updates are mixed on these 6 high profile ASX 200 shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Auroch Minerals Ltd (ASX: AOU) share price is surging higher again today, up 8.33% in late afternoon trading after an earlier rise of 11%. This comes after the company announced promising results of a second diamond drill test at its Leinster Nickel Project.

Auroch holds a nickel exploration portfolio with its Nepean, Saints and Leinster projects, all located within the Goldfields region of Western Australia.

Today’s surge sees the Auroch share price trading up at a more than 7-year high to 20 cents per share, up 43% so far in November. Year-to-date Auroch’s share price is up 233%.

By comparison the All Ordinaries Index (ASX: XAO) is down 1.3% so far this year.

What’s driving the Auroch share price up today?

Auroch told the ASX this morning that its second diamond drillhole at the Horn (located in its Leinster Nickel Project) had intersected further massive nickel sulphides. This follows on the thick massive to semi-massive nickel sulphide intersection reported from its first test hole at the Horn.

The company said results from the second drill hole reaffirmed the thickness and continuity of the massive nickel-sulphide mineralisation at a fairly shallow depth. Auroch also pointed to the potential for targeting further mineralisation extensions along the strike to the north of its Horn Prospect.

Commenting on the results, Auroch managing director Aidan Platel said:

The drilling at Horn continues to deliver with another impressive nickeliferous massive sulphide intercept in our second hole. Importantly, the intersection has extended the strike of the known nickel sulphide mineralisation, providing a thick intercept where the mineralisation was previously thought to have pinched out.

The thickness and continuity of the massive nickel sulphide mineralisation at such a shallow depth continues to excite, and we look forward to what the remainder of the diamond program and the pending assays results will bring. We are already looking beyond this current program and planning drilling programs to explore the large strike potential to the north of the Horn Prospect.

More reading

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• Why the DroneShield (ASX:DRO) share price shot up 10% today
• The Cleanspace (ASX:CSX) share price is soaring 12% higher today. Here’s why.
• Sky Network (ASX:SKT) share price shoots 6% higher on upgraded guidance

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Primewest Group Ltd (ASX: PWG) share price is up by more than 6% in late afternoon trading.

This follows on the company releasing a takeover announcement for its wholly owned subsidiary, Vitalharvest Freehold Trust (ASX: VTH).

Today’s gains have seen the Primewest share price return to just a 4.2% loss year-to-date. Vitalharvest’s share price is up 28.0% so far in 2020.

By comparison the All Ordinaries Index (ASX: XAO) is down 1.3% since 2 January.

What do Primewest and Vitalharvest do?

Established in 1995, Primewest is an Australian property fund manager. The company has over $4.6 billion of assets under management across Australia and in the United States. Primewest manages retail, industrial, commercial, residential, and agricultural assets.

Vitalharvest owns one of the largest portfolios of berry and citrus farms in Australia. Its assets are located across New South Wales, South Australia and Tasmania and are leased to Costa Group (ASX:CGC).

What did Primewest announce to send its share price up 6% today?

After entering a trading halt yesterday, Primewest announced its support for the Macquarie Infrastructure and Real Assets (MIRA) proposal to acquire all of the issued shares of Vitalharvest for $1.00 per share, by way of a trust scheme.

Failing the approval of the trust scheme by shareholders, MIRA proposes to purchase Vitalharvest’s assets for a cash consideration of $300 million.

At least half of Vitalharvest shareholders that are not affiliated with Primewest need to vote in favour of the transaction. Primewest reported it will receive a fee of $8.0 million once the conditions are satisfied.

Commenting on the proposal, David Schwartz, managing director of Primewest, said:

Primewest’s intention is to support the proposed transaction. Upon acquiring the manager of VTH, Primewest sought to reduce the variability in earnings associated with the current VTH leases. However, there was no certainty that this strategy was achievable in a suitable timeframe whilst the MIRA Proposal provides cash certainty to all investors at a material premium to the price of VTH units. As such, in the absence of a superior proposal, Primewest intends to vote in favour of the MIRA Proposal.

Primewest continues to actively seek opportunities in the agricultural space and believes there is significant demand from investors to invest in the space.

With Vitalharvest shareholders not yet having voted on the proposed transaction, the Primewest share price will be one to watch.

More reading

• Costa (ASX:CGC) share price lower despite appointing new CEO
• Why the Vitalharvest (ASX:VTH) share price is rocketing 23% higher
• Why Fletcher Building, Santos, Vitalharvest, & Webjet shares are storming higher
• 3 small cap ASX shares with large dividends
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The AFP Pharmaceuticals Ltd (ASX: AFP) share price is on the march today. This comes after the company announced a raft of agreements and the establishment of a new subsidiary in Europe. The AFP Pharmaceuticals share price is up at an intra-day high of 3.2% to $5.14. This compares to the S&P/ASX 200 Index (ASX: XJO) which is fractionally higher at 0.4% to 6,521 points.

What’s driving the AFP Pharmaceuticals share price?

AFT Pharmaceuticals share price is rising today after the company advised it has opened a representative office in Ireland to strengthen its growth profile across Europe. Management said the decision was based on the ongoing demand in the region for its Maxigesic pain relief products.

The company has appointed the managing director of Ireland’s JED Pharma, Eddie Townslie, as local director of AFT Pharmaceuticals in Europe. JED Pharma is a distributor of Maxigesic IV in Ireland. Prior to his current role, Mr Townslie held the position of export director at pharmaceutical group Pinewood Healthcare.

International growth

Furthermore, the company said Maxigesic IV had been submitted for registration to 27 European countries, with 17 so far approved. AFT Pharmaceuticals noted that as registrations increased, so too would the need for the company to provide local support. This will involve further offices to oversee licensees and distributors such as regulatory services.

The company said it received new licensing, distribution and supply agreements for Maxigesic. The new partner signing is for its Maxigesic IV products in Ireland and Thailand, and Maxigesic tablets in Greece, Pakistan, and Ecuador.

According to a report published by DelveInsight, AFT Pharmaceuticals has a huge market opportunity ahead. Market estimates indicate that Maxigesic has the potential to generate sales of more than $80 million in Europe by 2028.

What did management say?

AFT Pharmaceuticals managing director Dr Hartley Atkinson welcomed the progress, saying:

We are also delighted to have secured agreements for Maxigesic IV distribution with Ireland’s Jed Pharmaceuticals for Ireland, along with Alliance Pharma in Thailand. We have concluded licensing agreements with Switzerland’s Acino for Maxigesic oral dose forms in Ecuador and Greek’s market leading Elpen Pharmaceuticals, along with distribution agreements with the Karachi-based Excel Healthcare Laboratories for Pakistan.

Acino distributes Maxigesic tablets in a broad range of countries including the Central American Common Market (CACM), while the relationship with Excel Healthcare Laboratories and Elpen is new.

We are delighted to continue to expand our partners for Maxigesic and Maxigesic IV around the world with the focus now moving to completion of any remaining regulatory actions and following that product launches.

AFP Pharmaceuticals share price summary

The AFP Pharmaceuticals share price has risen more than 65% since COVID-19 impacted in March. Only last week, the company reached an all-time high of $5.25 after trading at $3.10 just over 8 months ago.

More reading

• Why the Primewest (ASX:PWG) share price is soaring 6% higher today
• 2 highly-rated ASX mid cap shares to buy
• The Flight Centre (ASX:FLT) share price is up 46% in November
• Tussle at Kogan (ASX:KGN) over executive compensations
• Australia’s wage growth slows to a crawl

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At the mid cap side of the market there are a good number of options for investors to choose from.

In fact, so many, it can be hard to decide which ones to choose over others.

Two mid cap shares that come highly rated are listed below. Here’s what you need to know about them:

BINGO Industries Ltd (ASX: BIN)

BINGO is one of Australia’s leading waste management companies. It bolstered its offering last year with the game-changing acquisition of rival Dial a Dump Industries. This acquisition has allowed BINGO to be fully vertically integrated from collections to landfill. It also makes it the largest player in building and demolition waste in Sydney and has diversified its operations.

Last month analysts at UBS put a buy rating and $3.00 price target on the company’s shares. While COVID headwinds continue to weigh on its performance, it believes it is well-placed to benefit from several Federal Budget initiatives. The BINGO share price is currently fetching $2.74.

Damstra Holdings Ltd (ASX: DTC)

Damstra is a growing integrated workplace management solutions provider to multiple industry segments. It provides a cloud-based workplace management platform which is used by businesses globally to track, manage, and protect their workers and assets. Among its offering there are products which have become highly sought after in the current environment such as fever detection and mobility tracking. Like BINGO, the company also strengthened its offering with an acquisition recently. It acquired Vault Intelligence, which is a software company offering solutions which combine health, safety, compliance, and risk management.

One broker that is positive on the company’s prospects is Morgan Stanley. It has an overweight rating and $2.00 price target on Damstra’s shares. This compares to the current Damstra share price of $1.68.

More reading

• Why Althea, BWX, Damstra, & GrainCorp shares are charging higher
• Damstra (ASX:DTC) share price storms higher on AGM update
• Wilson Asset Management thinks these 2 small cap ASX shares are a buy
• Why Bingo, Evolution, JB Hi-Fi, & Super Retail shares are dropping lower
• The Bingo (ASX:BIN) share price dips on AGM

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 recommends Damstra Holdings Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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