Tag: Motley Fool

The Perpetual Limited (ASX: PPT) share price is pushing higher on Thursday.

In morning trade, the fund manager’s shares are up 2.5% to $29.84.

Why is the Perpetual share price rising?

Investors have been buying Perpetual shares today after the company revealed that it has received an improved takeover approach.

According to the release, Perpetual received a further unsolicited conditional, non-binding indicative proposal to acquire all its shares on issue from the consortium comprising BPEA Private Equity Fund VIII and Regal Partners.

Under the revised indicative proposal, the consortium is offering $33.00 cash per share, a 10% increase from the original indicative proposal of $30.00 cash per share.

However, Perpetual’s board has considered a number of factors, including value, high conditionality, transaction and execution risks. After taking all this into account, it has determined once again that the consortium’s revised indicative proposal is not in the best interests of its shareholders and has therefore rejected the offer.

In fact, it believes the offer “continues to materially undervalue the company.” So, it appears that a significantly improved offer will need to be tabled to get a deal over the line.

For now, Perpetual’s board advises shareholders to take no action. It will keep shareholders informed in accordance with its continuous disclosure obligations.

Pendal deal still on

In other news, Pendal Group Ltd (ASX: PDL) has responded to speculation that the above approaches could impact Perpetual’s proposed takeover.

Pendal isn’t planning to let that happen and is pushing ahead with a scheme meeting this week despite Perpetual requesting a delay. It commented:

Pendal wishes to update its shareholders and the market that despite requests by Perpetual for a delay, it intends to proceed to the first court hearing for the Scheme this week and to seek orders convening the scheme meeting and for despatch of the Scheme Booklet to shareholders, with a scheme meeting to occur in mid-December 2022.

Pendal notes that while the Scheme Implementation Deed permits Perpetual to engage with another proposal, it does not permit Perpetual to terminate or otherwise abandon the Scheme in order to pursue a proposal. For clarity, the Deed does not preclude Perpetual responding to a proposal, but any resulting transaction can only be implemented in circumstances where the Scheme is accommodated. Any speculation to the contrary is inaccurate and contrary to a certain and well-functioning market for corporate control.

The post Perpetual share price leaps on boosted takeover bid appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 10 most shorted ASX shares
• How did Pendal shares fare today amid takeover talk and an earnings update?
• Why A2 Milk, Bravura, Magellan, and Pendal shares are dropping
• Here are the top 10 ASX 200 shares today
• Why A2 Milk, New Hope, Perpetual, and Talga shares are charging higher

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

from The Motley Fool Australia https://ift.tt/VQuxO7g

The Xero Limited (ASX: XRO) share price is falling on Thursday following the release of the company’s half year results.

At the time of writing, the cloud accounting platform provider’s shares are down 7% to $67.60.

Xero share price lower on earnings miss and CEO exit

• Operating revenue up 30% (27% in constant currency) to NZ$658.5 million
• Annualised monthly recurring revenue (AMRR) jumped 31% (23% in CC) to NZ$1.49 billion
• EBITDA up 11% to NZ$108.6 million
• Total subscribers increased 16% to 3.5 million
• CEO Steve Vamos leaving after almost 5 years in the job

What happened during the half?

For the six months ended 30 September, Xero reported a 30% increase in operating revenue to NZ$658.5 million and a 31% jump in AMRR to NZ$1.49 billion. This was driven by a 16% increase in subscribers to 3,496,000 and a 13% lift in average revenue per user (ARPU) to NZ$35.30.

Here’s a summary of its performance across different markets:

• Australian revenue up 31% (25% in CC) to NZ$294 million after increasing subscribers by 126,000 to 1.47 million.
• New Zealand revenue up 16% to NZ$84 million following a 24,000 increase in subscribers to 536,000.
• UK revenue up 32% (34% in CC) to NZ$175 million. Xero added 44,000 net subscribers, bringing its total to 894,000. New additions were impacted by a slower than expected uptake of MTD for VAT and partner sales approach changes.
• North America revenue up 44% (30% in CC) to NZ$44 million. Xero added 15,000 net subscribers in the market, bringing its total to 354,000. Subscriber growth was impacted by seasonality factors.
• Rest of the World revenue up 35% (25% in CC) to NZ$62 million. Subscribers grew 16,000 to 242,000 in the market.

Softer earnings

One disappointment was that Xero’s top line growth didn’t flow all the way down to the bottom line.

The company reported an 11% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA) to NZ$108.6 million. This was due largely to the impact of a NZ$25.9 million non-cash impairment driven by changed operational and market conditions for the Waddle business, which was partially offset by non-cash revaluation gains of NZ$10.8 million.

Excluding these adjustments, EBITDA would have been NZ$123.7 million, up 28% against the comparative period. This reflects a slight increase in operating expenses as a percentage of operating revenue from 83.4% to 83.9%.

How does this compare to expectations?

This result was somewhat mixed in comparison to what analysts were expecting.

For example, Goldman Sachs was expecting “Revenue/GP/EBITDA +28/+30/+42% vs. PcP to NZ$648/571/143mn.”

While Xero’s revenue was higher than Goldman’s estimate, its EBITDA has fallen well short both before and after adjustments. It was also the same for consensus estimates, which stood at NZ$656 million revenue and NZ$143 million EBITDA.

That may explain some of the weakness in the Xero share price today.

CEO exit

Also potentially weighing on the Xero share price is news that its CEO, Steve Vamos, is leaving after almost five years in the top job.

Vamos is retiring from the role and plans to return to his previous portfolio in business coaching and leadership development as an advisor, director, and investor.

The good news is that the company has acted fast and appointed a replacement, Sukhinder Singh Cassidy.

The release explains that Singh Cassidy is an experienced Silicon Valley executive, with more than 25 years’ global leadership experience. This includes as President, Asia Pacific & Latin America at Google; President at StubHub; founder of theBoardlist; founder of Joyus, where she was CEO; and co-founder of Yodlee.

Singh Cassidy will join the company at the end of month and formally takeover the role on 1 February 2023.

Outlook

Looking ahead, it is business as usual for Xero. Its outlook statement is little changed from the end of FY 2022. It stated:

Xero will continue to focus on growing its global small business platform and maintain a preference for reinvesting cash generated, subject to investment criteria and market conditions, to drive long-term shareholder value. Total operating expenses (including acquisition integration costs) as a percentage of operating revenue for FY23 are expected to be towards the lower end of a range of 80-85%.

The post Xero share price sinks 7% on half-year earnings miss and CEO exit appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• How I’d find ASX growth shares to buy today to double my money
• Analysts name the ASX growth shares to buy
• US$10 billion was just wiped from the value of Atlassian. How are ASX 200 tech shares responding?
• What’s the outlook for the Xero share price in November

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/y8qJXbv

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Elon Musk, as expected, has sold a sliver of his Tesla (NASDAQ: TSLA) stake to help fund his acquisition of Twitter. Investors are now left to wonder whether Musk is done selling, which is creating volatility in the stock. Shares of Tesla opened Wednesday up as much as 2.4% before beginning a steady decline, trading down more than 6% for the day as of 2 p.m. ET as investors try to figure out what comes next.

So what

Shares of Tesla are down more than 30% in the last three months, and at least part of that decline is likely due to concerns about how Musk will fund and manage his Twitter adventure. Investors got at least part of the answer on Tuesday night, when Musk disclosed in a regulatory filing the sale of 19.5 million Tesla shares via 38 separate transactions over the past few days.

The executive raised about $3.95 billion from the sales, a significant part of the total cash outlay Musk needs for his $44 billion cash-and-debt purchase of Twitter. Musk has previously sold about $15 billion worth of Tesla shares in order to fund the acquisition.

A large shareholder selling into the open market tends to put pressure on the share price because supply and demand can become temporarily unaligned. If Musk’s sale is all the funding he needs to complete the Twitter deal and that overhang can be removed, it could be a positive for the Tesla share price from here. But Musk has said previously he hoped to avoid further sales, and investors are likely to be cautious, at least for now.

Tesla shares could also be under pressure due to the electric vehicle manufacturer issuing a recall of about 40,000 vehicles over concerns they could lose power steering. The problem can be fixed via an over-the-air software update, according to reports.

Now what

For Tesla investors, there is little to suggest the volatility will subside anytime soon. Despite whatever reassurances Musk provides, it is hard to say for sure that there will be no further stock sales. And Twitter adds another distraction to Musk, who already runs SpaceX and The Boring Co. in addition to serving as CEO of Tesla, at a time when the automaker is dealing with macroeconomic pressures.

For long-term-focused investors, the bull and bear case for Tesla is largely unchanged from where it was a year ago. This remains a highly valued stock, but one with much potential for growth from here. But no matter where you think Tesla will be in five years, there is a good chance that this current spate of volatility will continue in the weeks and months to come.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock is tumbling today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did Elon Musk just sell $6 billion worth of Tesla shares?
• Why Tesla hit a new 52-week low today
• Why Tesla shares dropped below $200 on Monday
• Forget Dogecoin, this crypto could be the even bigger winner from Elon Musk’s Twitter takeover
• Tesla sees a China slowdown, but this Nasdaq stock is faring much worse

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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 Scott Phillips.   

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/aHtAWbn

The A2 Milk Company Ltd (ASX: A2M) share price has seen plenty of volatility over the last couple of years.

Since the start of July 2020, A2 Milk shares have fallen by around 70%.

But, interestingly, the company has gone on a strong run over the past six months, rising by 44%.

So, with the recent rise from the low, can investors say that the worst is over?

A2 Milk is expecting growth

After a couple of years of revenue declines, with regular earnings downgrades, A2 Milk is finally expecting to deliver growth again.

When the dairy company announced its FY22 result, it also gave some comments about expectations for FY23. It said that it’s expecting continued revenue and earnings growth.

The company said that it’s expecting high single-digit growth in FY23. FY23 first-half growth is expected to be “significantly higher” than the FY23 second half.

The FY23 gross profit margin is expected to be “broadly in line” with FY22, with cost of goods sold headwinds related to increasing milk, ingredient and packaging costs offset by price increases, product mix benefits and cost mitigation initiatives.

Overall, the business is expecting earnings before interest, tax, depreciation and amortisation (EBITDA) growth in FY23 and a modest improvement in the EBITDA margin. It’s expecting the FY23 second-half EBITDA margin to be better than the first half.

Is the worst over?

The latest win for the business came as the United States Food and Drug Administration approved A2 Milk to supply infant milk formula to the US to help with the shortage there.

The FDA had deferred further consideration of A2 Milk’s US application. But, after ongoing engagement with the FDA, the agency has given A2 Milk approval to supply infant formula. The business is expecting to sell up to 1 million cans, all within the second half of FY23.

According to reporting by the Australian Financial Review, Spheria Asset Management portfolio manager Matt Booker said:

It’s done reasonably well despite the challenges and headwinds, particularly in China. They are growing again, and rolling out into more stores there.

My feeling is they won that a2 category years ago. They sold the brand hard into China, and it’s hard to displace – consumers tend not to like copycats and rather have the original brand. I think the brand still resonates with Chinese consumers.

They are coming off that low base in terms of margins. I think they can get back to the 20 per cent EBITDA margins from where they are now. This is a far more sustainable business today.

The AFR also referred to Barrenjoey head of consumer research Tom Kierath liking the ASX share, saying the US news is incrementally positive, but not a “game changer”, and China remains its opportunity.

Snapshot

Over the last month, the A2 Milk share price is up around 4%.

The post Has the worst been and gone for A2 Milk shares? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today  
• Why A2 Milk, Cettire, Lottery Corp, and Weebit Nano shares are rising
• Why is the A2 Milk share price surging 5% on Tuesday?
• Broker tips A2 Milk share price to jump 24%
• Why did the A2 Milk share price go backwards in October?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/MK3PmXd

In volatile times like 2022, it’s worth paying attention to ASX shares that are on a winning streak.

That’s because they must be doing something right to consistently attract support from investors while other stocks yo-yo up and down.

The analysts at Celeste Funds Management, in a memo to clients this week, pointed out two small-cap stocks that each had a spectacular October. 

They are still holding on to them, confident of further rises:

Bright future even after ‘ongoing consistent performance’

Litigation fund Omni Bridgeway Ltd (ASX: OBL) saw its share price rocket 19.6% upwards last month, reported the Celeste team, on the back of “ongoing consistent performance”.

“Income conversion for the quarter was lower than expected as a Fund 5 investment was realised earlier than the previously forecast FY27, resulting in an internal rate of return (IRR) of 152%,” read the memo.

“Estimated portfolio value (EPV) in FY23 experienced normal slippage to outer years, although pleasingly total EPV increased by 4.4% [from] the June quarter.”

Against the odds in a turbulent stock market, Omni Bridgeway shares have climbed in excess of 25% year to date.

The outlook for the coming years is bright, according to Celeste analysts.

“Commitments of $69 million and indicative investment opportunities of $214 million imply the business is on track to meet FY23 commitments guidance.”

As of the end of October, Omni Bridgeway was the Celeste Australian Small Companies Fund’s largest holding.

Coverage is sparse from other professionals on the litigator, but three out of the four analysts currently surveyed on CMC Markets are rating it as a strong buy.

Rare business where increased debt facility is to be celebrated

Lifestyle Communities Ltd (ASX: LIC) develops, owns and operates land lease properties for older Australians.

The stock price enjoyed a 15.7% rise in October, despite unfavourable conditions for real estate assets.

The Celeste team attributed the ascent on the news of new debt capacity.

“Lifestyle Communities increased its [debt] facility size from $375 million to $525 million, secured as a $150 million, five-year tranche.”

The facility in totality now has expiries spread over mid-2025 to late 2027, according to Celeste analysts.

“The debt is earmarked for ongoing land acquisitions and development costs as the business scales up to enable the sale of two communities per annum to move towards three over the next few years.”

Celeste’s peers are less convinced about Lifestyle Communities than Omni Bridgeway.

According to CMC Markets, three analysts each think the stock is a strong buy and a hold respectively, while one recommends it as a moderate buy.

The post 2 small-cap ASX shares to buy that had a MASSIVE October: fund appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/d5ONzaX

ASX earnings fans are likely having a great month as reporting season for S&P/ASX 200 Index (ASX: XJO) banks nears its end.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) kicked off the action among the big four, posting its full-year earnings late last month. Westpac Banking Corp (ASX: WBC) followed suit earlier this week and National Australia Bank Ltd (ASX: NAB) posted its earnings this morning.

Next up will be Commonwealth Bank of Australia (ASX: CBA). The financials giant will drop its first quarter update next week after reporting in August.

So, with most of the market’s biggest banks having now dropped their full-year earnings, are the ASX 200 financials giants worth buying? Here’s what experts are saying.

Are ASX 200 bank shares a buy right now?

ASX 200 banks could be a buy, according to some experts, while others warn investors not to over-expose themselves to the sector.

Head of investments and capital markets at VanEck, Russel Chesler warns non-performing home loans could rise as the property market slows down, The Australian reports. The expert was quoted as saying:

Higher costs including wage inflation are limiting the expansion of bank profits. Looking forward the significantly higher interest rates will see loan growth continuing to slow and bad debts will increase.

We do not believe these risks are fully factored into the major bank’s share prices.

That’s in comparison to many previous predictions that rate hikes would allow ASX 200 banks to reprice their loan offerings, thereby increasing their net interest margins (NIMs) and profits.

However, soaring NIMs haven’t quite come to fruition just yet. The sector was bolstered when Bank of Queensland Ltd (ASX: BOQ) reported a final quarter NIM of 1.81% last month. Though, that’s since proven to be among the best of the bunch.

ANZ reported an exit NIM of 1.8% and that of NAB reached 1.72%.

Meanwhile, Westpac saw a NIM of 1.9% in the second half. However, its full-year NIM dropped 17 basis points to 1.87%.

Still, on an individual level, many top brokers are bullish on most of the ASX 200’s big four banks.

What do brokers expect from the big four?

Morgans added CBA shares to its November ‘best ideas‘. The broker believes the bank is “the highest quality bank and a core portfolio holding for the long term”. Though, it did note the biggest bank is also the most expensive on key valuation metrics.

Meanwhile, Westpac retained its place on the monthly list. The broker said it has “the greatest potential for return on equity improvement… if its business transformation initiatives prove successful”.

Citi and Goldman Sachs also tipped Westpac shares as buys with as much as 16% upside following the bank’s full-year results, my Fool colleague James reports.

The pair also expect big things from ANZ shares. They both believe the smallest of the ASX 200 big four banks could up its dividends in coming years, with Citi slapping it with a buy rating and Goldman Sachs remaining neutral on the stock.

Finally, Goldman Sachs believes NAB shares are a buy right now. It expects the bank to outperform due to its exposure to commercial real estate, helping it to grow its dividends.

The post ASX 200 bank shares: Buy, hold, or fold? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why has the Sayona Mining share price dumped 33% in 2 months?
• Here are the top 10 ASX 200 shares today
• Top fund manager sounds alarm bells for bank shares
• Here are the 3 most traded ASX 200 shares on Wednesday

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/cgDkaFu

The Origin Energy Ltd (ASX: ORG) share price will be one to watch on Thursday.

That’s because the energy company has just made a major announcement.

Why is the Origin share price on watch?

The Origin share price is likely to jump on Thursday after the company revealed that it has received a takeover approach.

According to the release, the company has received an indicative, conditional, and non-binding proposal from Brookfield Asset Management and MidOcean Energy to acquire Origin by way of a scheme of arrangement at a price of $9.00 cash per share. This will be reduced by any dividends declared and paid in the future.

This represents a massive 54.9% premium to the Origin share price at the close of play on Wednesday and values the company at $18.4 billion on an enterprise value basis. It could also be increased by 3 cents per share if completed by 15 May 2023.

Brookfield Asset Management is a Canadian investment company and MidOcean Energy is an LNG company formed and managed by EIG. Under the terms of the proposal, Brookfield would acquire Origin’s Energy Markets business and MidOcean would acquire the Integrated Gas business.

Not the first offer

The release reveals that this isn’t the first time that the consortium has tabled an offer. Previous offers of $7.95 cash per share in August and $8.70 to $8.90 per share in September were rejected.

On this occasion, due diligence has been granted and the Origin board has stated that if the consortium were to make a binding offer at $9.00 cash per share, then its current intention is to unanimously recommend that shareholders vote in favour of the proposal. This would be in the absence of a superior proposal.

It would also be subject to the parties entering into a binding scheme implementation agreement on terms acceptable to Origin and an independent expert concluding that it is fair and reasonable and in the best interests of shareholders.

Origin’s chairman, Scott Perkins, commented:

This proposal confirms that Origin, its operations and management team represent a highly strategic platform, well-placed to benefit from the energy transition. Our confidence in Origin’s prospects underscored our engagement with the Consortium and delivered a material increase on their initial offer. While the due diligence process advances, we will remain focussed on the successful execution of our strategy.

Origin CEO, Frank Calabria, added:

Over the past year, Origin has executed a number of important strategic initiatives that have strengthened the balance sheet, sharpened our strategic focus and positioned the company to prosper from the energy transition. At the same time, we have a dedicated, engaged and highly-skilled workforce who are committed to delivering good outcomes for our customers and communities. We believe Origin is in a strong position to lead the energy transition, capture opportunities and create value for shareholders.

The post Origin share price on watch amid $18.4b takeover offer appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are Origin shares burning 4% brighter today?
• Here’s why the Origin share price is storming higher today
• 5 big ASX announcements making news this week
• Origin share price higher on earnings guidance update
• Here are the top 10 ASX 200 shares today

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

from The Motley Fool Australia https://ift.tt/ypWN70P

Are you looking for dividend shares to buy? If you are, then the two named below could be worth checking out.

Both have been named as buys by analysts and tipped to provide attractive yields. Here’s what you need to know about them:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to look at is Dicker Data. It is one of the largest technology hardware, software, cloud, cybersecurity, access control and surveillance distributors in Australia and New Zealand.

Dicker Data could be a quality option for income investors thanks to its long track record of earnings and dividend growth and its positive long-term outlook. The latter is being supported by the recent expansion of its warehouse by 70%. This provides a significant runway to capture additional growth in the coming years and is also expected to deliver cost savings.

Morgan Stanley is positive on the company and recently retained its outperform rating and $14.00 price target on its shares.

As for dividends, its analysts are forecasting fully-franked dividends per share of 35.3 cents in FY 2022 and 40.5 cents in FY 2023. Based on the latest Dicker Data share price of $9.89, this will mean yields of 3.6% and 4.1%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend share that has been tipped as a buy is Healthco Healthcare and Wellness REIT.

It is a health and wellness focused real estate investment trust that invests in hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.

Goldman Sachs is a fan of the company and has a conviction buy rating and $2.14 price target on its shares. Goldman likes Healthco Healthcare and Wellness due to its strong balance sheet and its exposure to government-backed sub-sectors. In fact, the broker said that these qualities make it “one of our top picks in the sector.”

In respect to dividends, Goldman expects dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.41, this will mean yields of 5.3% for investors.

The post Analysts name 2 ASX dividend shares to buy right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why A2 Milk, Argosy Minerals, Dicker Data, and Life360 shares are falling
• Brokers name 2 ASX dividend shares to buy with big yields
• What’s going on with the Dicker Data share price on Monday?
• These ASX dividend shares have been named as buys
• If you invested $5,000 in each of these ASX shares 10 years ago, you’d be a millionaire today

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 positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/WjVhAU5

The uncertain investing environment continues to make stock-picking a hazardous task.

However, buying ASX shares that represent prudent business models increases the chances of making money in the long run, after riding out shorter-term bumps.

This is especially true of small-cap companies, which have been heavily discounted over the past 12 months. They are often high beta, meaning that while they lose heavily in dark times, they can also gain spectacularly as conditions recover.

The team at QVG Capital this week named three small-cap ASX shares that it holds and explained why they have such faith in them:

The resiliency of this business is still under the radar

Imdex Limited (ASX: IMD) is a stock not often mentioned, but the business has been quietly plugging away serving clients in a very profitable sector in Australia.

The company provides technology, equipment and services to the mining industry.

It seems investors are starting to notice, with the Imdex share price climbing 4.9% in October after a 14.3% climb in September.

“Imdex reported September quarter revenue 22% ahead of the same quarter last year and 12% ahead of the June quarter,” read QVG Capital’s memo to clients.

“This was greater than our and consensus expectations.”

The cyclical nature of mining makes investors anxious about buying into companies like Imdex, but the analysts insisted this was not a concern. 

“Fears around… cyclicality cause investors to under-appreciate the operational changes that have gone on within Imdex to make it a more resilient business,” read the memo.

“This and significant investment in R&D make us very bullish on the long term outlook for the company.”

A fundies’ favourite at the moment

Investment software provider Hub24 Ltd (ASX: HUB) similarly gave a positive performance report, according to the QVG team.

“HUB24 had a very strong September quarter trading update, which showed resilient inflows on to the platform,” read the memo.

“Given the nature of financial markets, we were impressed with the strength of HUB’s flows. Commentary around revenue margins and operating cost growth were also encouraging.”

The Hub24 share price has fallen 15.2% since the start of the year, although it has returned more than 180% over the past five years.

Stocks for the investment platform seem to be a bit of a darling among professional investors at the moment.

According to CMC Markets, nine out of 13 analysts currently rate Hub24 shares as a strong buy.

Not love at first sight

The QVG Capital team admitted it was not a fan of US family safety app Life360 Inc (ASX: 360) when it first floated three years ago.

“Due to the company being loss-making and high churn in the user-base we were initially slow to warm to the 360 story and did not participate in its IPO.”

But now the analysts like what they see.

“In the three or so years since the company listed it has made good progress in improving the product, reducing churn and moving towards profitability,” read the QVG memo.

“The announcement of significant price increases for the monthly subscription saw a strong re-rating in October as the market came to understand the [company’s] latent pricing power and implications of this for an accelerated path to profitability.”

The team also noted Life360 already boasts a significant user population and a paying customer base.

“The app is particularly popular in the US with over 40 million free users and over 1.3 million paid users.”

After losing as much as three-quarters of its valuation this year, the Life360 stock price has now recovered to be 35% down in 2022.

The post ‘Very bullish’: 3 small-cap ASX shares QVG is loving right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 reasons I would avoid BrainChip shares at all costs
• US$10 billion was just wiped from the value of Atlassian. How are ASX 200 tech shares responding?
• Leading fund manager names the 3 ASX stocks that drove its returns higher in October
• Why A2 Milk, Argosy Minerals, Dicker Data, and Life360 shares are falling
• These were the best-performing ASX 200 shares in October

Motley Fool contributor Tony Yoo has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 Ltd, Imdex Limited, and Life360, Inc. The Motley Fool Australia has positions in and has recommended Hub24 Ltd and Imdex Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/hWs9kwS

Are you interested in adding some ASX growth shares to your portfolio this month?

If you are, you may want to look at the two listed below that have recently been named as buys by analysts at Goldman Sachs.

Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is kitchen appliance manufacturer Breville.

Goldman Sachs believes that Breville is well-placed for growth in the coming years thanks to its three-pronged strategy. The broker expects this to underpin an EBITDA compound annual growth rate of 7% between FY 2023 and FY 2025. It recently commented:

We see BRG as having a three-pronged growth strategy: 1) building on secular growth of the portioned and roast & ground (R&G) coffee market and achieving market share gains; 2) new market entry; and 3) options – ecosystem revenue streams.

Goldman has a buy rating and $24.70 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that Goldman Sachs rates as a buy is online furniture and homewares retailer Temple & Webster.

Goldman Sachs believes the company is well-placed for long term growth due to its leadership position in a retail category that is still only in the early stages of shifting online.  It commented:

Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

Goldman has a buy rating and $7.55 price target on the company’s shares.

The post Goldman Sachs says these ASX growth shares are buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These 10 predictions could help you profit from the stock market regardless of inflation, interest rates or even another bear market
• Why Baby Bunting, James Hardie, Sims, and Temple & Webster shares are dropping
• Here are the 10 most shorted ASX shares
• 2 excellent ASX growth shares that analysts say are buys
• 3 ASX All Ords shares starting the week on fire

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 positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/SyhsJF0