Predicting style and fashion trends is as challenging as forecasting Melbourne's weather or expertly timing the market. While style shifts rapidly, materials evolve more slowly. However, when a material proves cost-effective, appealing, comfortable, and accessible, it quickly becomes integral to fashion. Bamboo has emerged as such a material.
Innovators have spun its fibres into yarn as fine as silk, creating clothing that combines elegance and durability. Bamboo clothing, known for its lightness and breathability, captivated fashion enthusiasts worldwide. Its hypoallergenic and antibacterial properties offer a gentle touch while keeping wearers fresh. In the sustainable evolution of the clothing industry, bamboo has become a key player, transforming a combined approach to fashion and sustainability. Whether it be sport, business, investing or entertainment - we love a story of success in the face of adversity.
Take Leicester City Football Club's improbable Premier League title win in the 2015-2016 season as a prime example of winning against all odds. The NBN/Connectivity market is high in competition and concentration.
According to the ACCC's latest NBN Wholesale Market Indicators Report, smaller providers such as Superloop (ASX: SLC), Aussie Broadband (ASX: ABB) and Vocus continue to acquire a greater share of the NBN wholesale services pie during the December 2023 quarter. Smaller providers now command a quarter of NBN wholesale services, steadily expanding their customer base while competing with larger retailers. Conversely, major providers like Telstra, TPG, and Optus experienced declines. This dynamic underscores the evolving landscape of NBN connectivity in Australia, with smaller players demonstrating resilience and competitiveness in the market. While international headlines have been dominated by the "magnificent seven," the ASX has previously harboured its own notable tech stocks encapsulated within the WAAAX acronym.
As company earnings reports roll in, investors will see multiple examples of why it pays to be an optimist and to ignore apocalyptic forecasts. For much of late 2022 and 2023, the media was fixated on rising interest rates and the potential of a damaging recession. As a result, while some retailers had seen share prices recover strongly as the world emerged from the pandemic, the momentum reversed as increased costs and slowing sales emerged.
Small businesses remain the lifeblood of daily life and the backbone of every economy. Despite the dominance of tech giants like Google (NASDAQ: GOOG), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN), millions of everyday transactions still occur outside their reach. Consider the simple acts of buying a coffee or a beer - the ubiquitous tap of a phone or card is a testament to the ongoing digital revolution in payments.
For some investors, Santa Claus has come a little earlier this year.
In November, the S&P 500 concluded the month with an impressive rise, just under 9%, while the Nasdaq posted gains of nearly 11%. Closer to home, the All Ords in Australia showed a modest uptick of 1.3% – a positive stride, though not quite matching the strides seen in the U.S. This leaves investors pondering the possibility of a 'Santa rally' to further bolster the market's performance. Wise investors, like Warren Buffett, often remind us that 'turnarounds seldom turn.'
However, like many rules of thumb, exceptions can creep into the common narrative and disrupt our views. There are companies that defy this adage, demonstrating that with strategic vision, effective management, and a pinch of resilience, successful corporate turnarounds are not just possible but can be transformative. In an era where cost of living pressures are mounting, Inghams Group Limited (ASX: ING) stands out as a beacon of strength and resilience. Originating as a family business in 1918, Inghams has grown into the leading integrated poultry producer in Australia and New Zealand. Despite the economic challenges posed by rising feed and fuel costs, plus consumers facing tightening budgets, Inghams proves its worth is far from chicken feed.
Private credit, commonly referred to as private debt or non-bank lending, is a growing asset class garnering increasing attention from investors.
Historically, this was space dominated by the big banks. However recent regulatory changes in addition to the Royal Banking Commission have led to traditional lenders exiting the space and limiting their lending activities to big corporates and residential mortgages. Takeovers have been a real theme in 2023 for the beaten down ASX small cap sector.
We’ve covered a number of articles and topics in recent months as to why takeovers are occurring. We’ve also recently released a white paper outlining several ASX companies that we believe are prime candidates for a future acquisition given their strategic assets and current valuation. In this article we take a look at three company takeovers at varying stages. Stand still in the advertising and marketing space and you’ll be left behind.
Over the past quarter-century, the industry landscape has undergone a transformative journey, driven by the seismic shift from paper-based advertising to the digital realm. The advent of the internet, social media, and advanced technology has brought about a revolution in the way businesses connect with their audiences. In this dynamic era of ever-evolving communication channels, understanding the interplay between traditional print and the digital frontier is essential. In 2002 Wimbledon officials took out pandemic insurance at $3.2 million a year following the outbreak of SARS.
It wasn’t until almost 20 years later when a 1 in 100 year pandemic struck that the move paid off. Covid-19 forced the All England Lawn Tennis Club to cancel the tournament for the first time since WWII and was due to lose around $500 million in revenue. Thanks to the foresight to insure against such an event Wimbeldon recovered a large portion of the loss despite the fact a ball wasn’t served. The ASX has been red hot for takeovers in recent months, as we have highlighted in several articles covering the reasons why takeovers occur, the different strategies that companies employ for takeovers, and several specific takeovers of interest. We also recently released a white paper outlining several ASX companies that we believe are prime candidates for a future acquisition given their strategic assets and current valuation.
SRG Global (ASX: SRG) is an ASX-listed diversified industrial services company, standing at the forefront of innovation with a mission to simplify the complex in the asset lifecycle.
The company operates across diverse market sectors and geographies and over the last few years has undergone a strategic transformation to progress towards an earning profile offering more than two-thirds annuity/recurring earnings through its maintenance work. This shift positions the company for sustainable growth while also returning capital to shareholders through its dividend strategy. So what is SRG Global? In our previous article, we delved deep into the allure of corporate takeovers, highlighting how buyers—both strategic and financial—are perpetually hunting for golden opportunities from their competitors, whether that's acquiring a dynamic innovation, a key division, or even an entire company. As we pivot to dissect whole company transactions, several compelling reasons emerge for why specific businesses become targets. Let's unpack these strategies.
Buying bargains or check out traps? Is it time to consider retail stocks?
There have been plenty of reasons to avoid the consumer discretionary space over the last 12 to 18 months. Does this provide an opportunity? Australian investors are heavily focused on dividends (to the point of being obsessed). This is understandable. The dividend imputation system in Australia ensures that investors receive preferential tax treatment on the dividends they receive from companies they own shares in. This means that investors typically receive a credit for the income tax paid by the corporation, which is 30% for most entities listed on the ASX. Investors may even receive a refund equal to this tax credit if they do not generate sufficient taxable income, such as many self-funded retirees.
Another week, another takeover offer.
This time around it’s Symbio (ASX: SYM) which we first wrote about as a potential takeover target back in July. Sure enough, an initial offer arrived from Superloop (ASX: SLC) in early August, which we covered here. With earnings season done and dusted, we take a look back at three of the best performers in what was an overall mixed period for the ASX. We’ve also included one quality company which has had a challenging time post-release and may provide an opportunity for investors should things turn around.
The green energy movement has emerged as a transformative force in the global economy.
Driven by the urgent need to mitigate climate change and reduce our dependence on finite fossil fuel resources, the concepts of recycling, regenerating, and reusing products have gained prominence. These practices are not only environmentally responsible but also present significant economic opportunities for companies operating within the green sector. In this article we’re taking a look at one of TAMIM’s holdings, Close the Loop (ASX: CLG), a small-cap ASX-listed business at the forefront of this movement. Takeover offers continue to roll in for TAMIM.
This time around it’s Cirrus Networks Holdings Limited (ASX: CNW) with an offer from Atturra Limited (ASX: ATA) to acquire 100% of Cirrus’ shares through a Scheme of Arrangement for a price of 5.3 cents per Cirrus share. The move is yet another sign of the increased merger & acquisition activity in the small cap space on the ASX. You can read up on our coverage of the previous takeover offers within the portfolio for Healthia (ASX: HLA) here and Symbio (ASX: SYM) here. Shares in allied healthcare company Healthia (ASX: HLA) rocketed higher last Thursday when it announced the company had received a takeover bid from private equity company Pacific Equity Partners. Private equity companies are essentially investment companies known for buying up entire businesses, make use of large amounts of debt to finance transactions and juice returns, improve the operations (usually through cost-cutting initiatives) and occasionally combining the business with others that they already own.
In what has been a mixed earnings season these three ASX small caps have stood out over the last week showing strong results and resilience in a challenging market.
The anticipation was beyond high going into NVIDIA’s 2Q 2023 earnings result last week. Artificial Intelligence, or AI, has been the phrase on everyone’s lips in the investment community since the launch of ChatGPT late last year, and stocks set to benefit from the AI boom have seen significant returns this year. NVIDIA is the poster child for this AI fascination, and its previous earnings announcement generated incredible hype. Management’s guidance that revenue for the second quarter would be 50% higher than consensus estimates helped propel the stock to more than three times its level at the start of the year, and eclipse the well-publicised trillion-dollar market capitalisation.
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