Adnoc's $19 Billion Santos Bid Exposes Australian Energy Dilemma
One of the biggest foreign takeovers in Australian history will force regulators and politicians to weigh who controls critical energy infrastructure against the need to address a looming domestic gas shortfall.
Santos Ltd.'s board agreed this week to back a $19 billion takeover bid from a group led by Abu Dhabi National Oil Co., a cash-rich but state-owned company that is seeking to become a top producer of liquefied natural gas. Yet the ASX-listed company's shares are still at a significant discount to the offer, reflecting investor uncertainty around approval by Australia's regulators, who have a history of blowing up multibillion-dollar deals.
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15 minutes ago
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With EPS Growth And More, OUTsurance Group (JSE:OUT) Makes An Interesting Case
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. In contrast to all that, many investors prefer to focus on companies like OUTsurance Group (JSE:OUT), which has not only revenues, but also profits. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Recognition must be given to the that OUTsurance Group has grown EPS by 57% per year, over the last three years. While that sort of growth rate isn't sustainable for long, it certainly catches the eye of prospective investors. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The music to the ears of OUTsurance Group shareholders is that EBIT margins have grown from 18% to 20% in the last 12 months and revenues are on an upwards trend as well. Ticking those two boxes is a good sign of growth, in our book. In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. Check out our latest analysis for OUTsurance Group Fortunately, we've got access to analyst forecasts of OUTsurance Group's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting. It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions. The real kicker here is that OUTsurance Group insiders spent a staggering R51m on acquiring shares in just one year, without single share being sold in the meantime. The shareholders within the general public should find themselves expectant and certainly hopeful, that this large outlay signals prescient optimism for the business. Zooming in, we can see that the biggest insider purchase was by CFO & Executive Director Jan Hofmeyr for R20m worth of shares, at about R42.27 per share. OUTsurance Group's earnings per share have been soaring, with growth rates sky high. Growth investors should find it difficult to look past that strong EPS move. And indeed, it could be a sign that the business is at an inflection point. If this is the case, then keeping a watch over OUTsurance Group could be in your best interest. Of course, just because OUTsurance Group is growing does not mean it is undervalued. If you're wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Keen growth investors love to see insider activity. Thankfully, OUTsurance Group isn't the only one. 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We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Travel Weekly
32 minutes ago
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Intrepid Travel acquires hotels in Tasmania and Morocco
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MPH Health Care (FRA:93M1) Has Announced A Dividend Of €1.20
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