Welcome to the halfway point of a busy Wednesday, with a lot happening on the market today. Here’s the big headlines:
Commonwealth Bank’s new record high
- Commonwealth (ASX:CBA) has continued its analyst-defying climb to a new all-time high share price of $176/sh intraday
- For over a year now, a vast majority of analysts have rated Commonwealth a sell
- However, amidst a Chinese economic downturn and subsequent Chinese equities exit, and new volatility stemming from the Trump 2.0 Administration, CBA is considered a safe haven asset
- Sentiment is apparently unchanged even after the RBA’s rate cut on Tuesday, where typically one may predict a bank would make less on mortgage payments
Mayne Pharma’s due diligence crash-out
- Mayne Pharma (ASX:MYX), a womens’ pharmaceutical products brand, has sunk -30% to $4.48/sh as U.S.-based Cosette walked away from a proposed $672M takeover of Mayne
- Mayne was required to inform Cosette of a material change to its underlying fundamentals, and despite having received information satisfying that, it did not inform Cosette
- Investors have responded by exiting Mayne Pharma stocks as it now appears it won’t be part of any $627M deals
- Further compounding issues, this follows a letter of concern from the FDA, ultimately alleging Mayne has been dishonest in advertising commercial risks associated with its products
Adriatic Metals jumps as takeover talks confirmed
- Adriatic Metals (ASX:ADT), currently exploring for silver in Bosnia and Serbia, has caught the eye of Canadian gold miner Dundee Precious Metals
- Adriatic investors clearly see the takeover (or buyout) as a beneficial step towards maximising value
- This is evidenced in that shares have jumped $1 in value from ~$3.65 to ~4.65/sh on Wednesday
- The +25% share price jump on Wednesday has levelled out Adriatic’s 1Y returns to a loss of only -3%
Join the discussion: See what’s trending right now on HotCopper, Australia’s largest stock forum, and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.