To The Moon

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,294.10 on Friday, up 0.53% in the past 5 days.

1. $Insignia Financial Ltd(IFL.AU)$ +16.38%

• Insignia Financial, the ASX-listed wealth giant put in play by Mike Murphy’s Bain Capital last month, is assessing a $2.9 billion cash offer from another private equity firm, instigating a bidding war for the owner of MLC.

• Insignia told shareholders on Monday that New York-headquartered CC Capital Partners had lobbed a competing bid, trumping Bain Capital’s December 13 offer and sending the stock rallying 12 per cent to $3.97 a share.

2. $SIMS LTD(SGM.AU)$ +10.38%

• Founded in Australia in 1917, Sims Limited is a global leader in metal recycling and the provision of circular solutions for technology. Sims Limited plays a vital role in helping increase circularity and decarbonisation by supplying recycled materials and re-purposed products.

• We don't think that Sims' modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low.

• For shareholders to have confidence a company will grow profits significantly, it must grow revenue. In the last 5 years Sims saw its revenue grow at 9.6% per year. That's a fairly respectable growth rate.

3. $Arcadium Lithium plc(LTM.AU)$ +9.87%

• Arcadium Lithium shares are defying the weakness in the lithium industry on Thursday and surging higher this week, which has been driven by some news relating to its proposed blockbuster takeover by mining giant Rio Tinto Ltd.

• Well, the good news for shareholders is that the takeover deal received a big boost overnight. According to the release, the Committee on Foreign Investment in the United States has concluded its review of the proposed acquisition of Arcadium Lithium by Rio Tinto and determined that there are no unresolved national security concerns.

• This means that merger control clearance has now been satisfied or waived in Australia, Canada, China, Japan, South Korea, the United Kingdom, and the United States. In addition, investment screening approval has been satisfied in the United Kingdom.

4. $SIGMA HEALTHCARE LTD(SIG.AU)$ +7.91%

• Sigma is a leading Australian full line wholesale and distribution business to pharmacy. With a history spanning more than 112 years, Sigma offers a flexible range of brands and services, including our retail pharmacy brands, Amcal and Discount Drug Stores, and an independent offer, PriceSave.

• Sigma shares are in the limelight after the ACCC approved its merger with Chemist Warehouse. Where to from here is a matter of economic debate, but also the fundamentals of both companies. Sigma shares are up more than 267% in the past year.

5. $Genesis Minerals Ltd(GMD.AU)$ +7.51%

• Genesis Minerals Limited is involved in the exploration, production, and development of gold deposits in Western Australia with a market cap of A$2.73 billion. The company generates revenue of A$438.59 million from its activities in mineral production, exploration, and development.

• Genesis Minerals has shown a remarkable turnaround, reporting A$84 million in net income for the year ending June 2024 after a previous net loss. The stock is currently trading at A$2.72, significantly below its estimated fair value of A$4.74, indicating potential undervaluation based on cash flows. With earnings expected to grow 22.7% annually over the next three years and revenue forecasted to increase by 18% per year, Genesis presents an intriguing opportunity despite past shareholder dilution concerns.