The ASX has made minor gains this morning.
The S&P/ASX200 is just 1.90 points higher today to 7,381.10.
The index has lost 0.83% for the last five days but sits 3.30% below its 52-week high.
Top-performing stocks in this index are Crown Resorts Ltd up 16.57% and Altium Ltd up 5.43%.
Crown offer
It’s not surprising Crown stocks are up after US giant Blackstone put in a third bid for the trodden down casino group.
Blackstone’s latest offer is 15 cents higher than its previous offer of $12.35, which it made in May.
Crown is now considering the offer, but will need approval from majority shareholder James Packer, who has a 37% shareholding.
In relation to Blackstone’s repeated efforts to acquire the company, CEO Steve McCann told the AFR: “We’ve got strong fundamentals and I think that has been underpinned by the continued interest from investors including Blackstone.”
McCann told the Australian, “Crown does have world-class assets, very hard to replicate and superior to any other portfolio of like assets in the world,” he said. “We have a global reputation for premium service, very strong fundamentals, relatively low gearing. The offer from Blackstone evidences that we continue to be attractive to investors.”
Blackstone currently owns 10% of Crown.
Crown will act in the best interest of shareholders.
Post COP26 stocks to watch
As we do each Friday, we asked Wealth Within founder and analyst Dale Gillham what’s on his mind. This week it is COP26 stocks.
“There has been a lot of talk about climate change with the recent climate summit and it has been suggested that part of the way forward is to phase out internal combustion engines because electric vehicles (EVs) are supposedly the way of the future. Indeed, over the last decade, there have been huge advancements in battery technology with lithium-ion batteries the choice for EV production.
“The demand for electric vehicles and the batteries that power them has sent lithium and lithium stocks soaring with the demand for EVs expected to rise dramatically over the next decade. Another mineral that is less talked about but just as essential to lithium-ion battery production is graphite. This mineral is currently in phones, cameras, laptops to name a few, as it is the anode material in the lithium-ion battery that contains graphite.
“One Australian company set to take advantage of the growth in EVs is Evolution Energy Minerals Ltd (ASX:EV1) that listed on the ASX after a successful $22 million dollar capital raising. Investors purchased the stock in EV1 at $0.20 and after listing on November 16, it traded at $0.58 before rising to $0.70 or a 250% gain for those who invested in the IPO. However, by Thursday it had traded down to close at $0.52 or a 25% drop in price, which is not surprising, given it was an IPO.
“I suggest you keep watching this stock and the graphite and lithium space for opportunities.”
On the small cap front
Geopacific Resources Ltd (ASX:GPR) is up 2.44%. GPR has successfully negotiated its financing package with Sprott Private Resource Lending II (Co), Inc, further de-risking its flagship Woodlark Gold Project in Papua New Guinea following the deferment of all non-essential activities at the site until 2022.