But it's been a far better day for some All Ords shares. So let's dig into three that have just hit new 52-week highs this Friday.

3 All Ords shares hit new highs on Friday

Omni Bridgeway Ltd (ASX: OBL)

On the surface, it doesn't look like an ultra-exciting day for the Omni Bridgeway share price. This All Ords financial share has gained 0.03% at the time of writing at $4.625 a share. But earlier today, the company rose as high as $4.65 – a new 52-week high for Omni Bridgeway.

It's the highest share price the company has enjoyed since mid-2020. Omni Bridgeway shares have been climbing ever since the litigation funder announced some pleasing annual commitment numbers last month.

Tassal Group Limited (ASX: TGR)

Next up is the All Ordinaries fish-farming company Tassal Group. Like Omni Bridgeway, Tassal shares haven't lit the world on fire with gains today. The company currently sits flat at $5.15 a share, up 0.1% for the day.

However, this gain is sitting on the shoulders of the stellar week the aquaculture company has enjoyed.

$5.16 is a new 52-week high for Tassal. Investors have been flooding into the share ever since Tassal announced that it had accepted a $1.1 billion ($5.23 per share) takeover offer on Monday from Canadian seafood company Cooke Inc.

Maca Ltd (ASX: MLD)

Mining services company Maca is our final All Ords share to check out this Friday. Maca shares have actually had a decent day of gains today, rising 4.46% to $1.055 a share. That comes after the company hit $1.06 this morning, which is… you guessed it, Maca's new 52-week high.

This move comes after news yesterday that NRW Holdings Limited (ASX: NWH) had launched a takeover offer for Maca. Investors were offered $1.085 per share, but the company disclosed yesterday that it had told NRW 'thanks, but no thanks'. Investors seem encouraged today, all the same.

The post 3 ASX All Ordinaries shares cracking new highs on Friday appeared first on The Motley Fool Australia.

NRW shares lifted 6.25% to $2.38 before entering a trading halt. In late afternoon, the construction and mining contractor released an announcement related to a takeover plan.

Let's take a look at what took place today.

What happened?

NRW entered a trading halt today pending a response to media speculation. Rumours emerged that NRW had launched a takeover offer of Maca Ltd (ASX: MLD), The Australian reported.

However, just before market close, NRW advised Maca had knocked back its proposal.

NRW confirmed it approached the board of Maca with a confidential merger proposal on 11 August. Under the deal, NRW would have acquired all of Maca's shares for $1.085 per share.

However, NRW said Maca "does not consider the merger proposal as superior to the current conditional Thiess takeover offer".

As my Foolish colleague Brooke reported at the time, Thiess launched a $350 million takeover bid at 1.025 per share in July.

Commenting on today's news, NRW managing director Jules Pemberton said: "We are disappointed that the Board of MACA has indicated that it is not willing to entertain our compelling proposal."

NRW share price lifts on earnings

Earlier today, NRW reported full-year financial results. Highlights included:

• Earnings before interest, tax, depreciation and amortisation (EBITDA) lifted 2% on FY21 to $272.4 million
• EBITA lifted 30.1% on the previous year to $157 million.
• Statutory net profit of $97.4 million, a 79.4% boost
• Normalised earnings per share of 22.5 cents, a 30.3% lift on FY21
• Fully franked dividend of 7 cents per share, a 40% lift in FY21

The EBITA result was higher than the previously forecast guidance of between $150 and $155 million.

Depreciation and amortisation fell 21% as a result of the sale of Boggabri assets in July 2021.

During the year, NRW secured "major order wins", boosting the order book to a record $5.2 billion.

What did management say?

Commenting on the results, NRW managing director and CEO Jules Pemberton said:

These are the best results NRW have reported despite the challenging conditions the business has encountered over the last 12 months.

Apart from the earnings highlight, the strong cashflow underlines the quality of those earnings and our ability to deliver a disciplined approach to balance sheet management

What's ahead?

NRW is predicting FY23 EBITDA in the range of $162 million to $172 million. This assumes projects will face current resource and supply chain pressures. NRW expects these pressures could ease during the 2023 financial year.

NRW has secured $2.3 billion worth of work for the FY23.

Share price snapshot

The NRW share price has soared nearly 43% in the past year and 35% in the year to date.

NRW has a market capitalisation of nearly $1.1 billion based on the current share price.

The post Results and trading halts: What went down for the NRW share price on Thursday? appeared first on The Motley Fool Australia.

Thiess has put forward an all-cash off-market offer of $1.025 per share in Maca.

At the time of writing, the Maca share price is 98.7 cents, 23.38% higher than its previous close.

Let's take a closer look at the bid posed to the mining and civil construction company.

Thiess puts forward bid for Maca

Global mining services company Thiess has put forward a bid for Maca, offering shareholders a 28% premium on the ASX share's previous closing price.

The Maca board has unanimously recommended investors accept the offer. Though, its recommendation is contingent on an independent expert concluding the bid is reasonable and no better offer coming along in the meantime.  

The offer is also conditional on Thiess receiving a 90% holding in Maca at the end of the offer period and regulatory approval. The regulators involved in the transaction will include the Foreign Investment Review Board and the Australian Competition & Consumer Commission.

Maca co-founder and chair Geoff Baker commented on the takeover bid driving the company's share price today, saying:

The board of Maca believes that Thiess is the right partner for the Maca business … Thiess will continue investing in our respected brand and will seek to provide additional development opportunities for our people as part of its national and international operations.

Thiess executive chair and CEO Michael Wright said the offer brings shareholders "certainty of cash, a strong premium, and an ability to achieve liquidity". Wright continued:

The proposed acquisition of Maca is an important part of Thiess' strategy to diversify its operations across commodities, services, and geographies.

We recognise and intend to maintain and grow Maca's strong brand and presence in the Western Australian market. Thiess also looks forward to supporting Maca to meet the evolving needs of its client base through promoting further investment in low emission and technology-led solutions.

Maca share price snapshot

The mining and constructing small cap has been outperforming many of its S&P/ASX 200 Index (ASX: XJO) peers lately.

Today's gain sees the Maca share price 23% higher than it started 2022. It has also gained 7% since this time last year.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) has slipped 11% year to date. It has fallen 16% over the last 12 months.

The post Maca share price leaps 23% on Thiess takeover news appeared first on The Motley Fool Australia.

During mid-morning trade, the mining and civil construction company's shares are down 5.92% to 79.5 cents.

What happened to Maca?

Shareholders are heading for the hills, selling Maca after following the latest unfortunate news from the company.

In a statement to the ASX, Maca advised it has not been selected as the preferred candidate for the mining services contract at Karara.

This brings the end to Maca's current contract with Karara which is till March 2022. NRW Holdings Limited (ASX: NWH) announced earlier this morning, it has been awarded with a Letter of Intent (LOI) for the Karara Iron Ore mine.

Maca stated that its $175 million acquisition of the Downer EDI Limited (ASX: DOW) Mining West business led to it previously novating the Karara contract. Pleasingly, the current performance on the contract has been in line with Maca's projections and is expected to continue.

The company noted that revenue and earnings remain broadly in line with market estimates for FY 2022. In addition, Maca will seek other revenue generating opportunities to fill the gap in FY 2023 and beyond.

Maca CEO and managing director, Mike Sutton commented:

Maca maintains a positive relationship with Karara Mining, and will continue to focus on delivering a quality service until the expiry of the current contract. Maca is pleased to have been involved in the Karara Magnetite project through the Mining West business, and thanks our client Karara Mining and our dedicated workforce, who will all be offered positions on other Maca sites at the expiry of the contract. Maca remains well positioned to replace the contract with one of the many material opportunities in the sector.

Maca share price snapshot

Since the start of 2021, Maca shares have continued their downward trend, falling 35% in value. The company's share price is sitting at the lower end of its 52-week range of 76 cents to $1.515.

On valuation grounds, Maca commands a market capitalisation of roughly $269 million, with approximately 341 million shares outstanding.

The post Maca (ASX:MLD) share price sinks 6% on Karara Project update appeared first on The Motley Fool Australia.

Let's take a closer look and see what Maca updated the ASX with.

What's pushing the Maca share price higher?

Investors are pushing the Maca share price higher after digesting the company's latest update.

In its announcement, Maca advised that it has secured a 'Hire and Maintenance' contract for CITIC Pacific Mining Management (CPM). This will see Maca provide a number of services at CPM's Cape Preston Sino Iron magnetite project. Situated 100km south-west of Karratha in the Pilbara region, the project is the largest magnetite mining and processing operation in Australia.

Depending on the number of works completed, the contract is expected to generate $200 million in revenue for Maca. Services are scheduled to commence in April 2021 and will run over a 36-month term.

Maca highlighted that its work-in-hand position stands at $3.4 billion as of February this year.

What did the CEO say?

Maca CEO Mike Sutton welcomed the deal, saying:

Maca is very pleased to continue working with CITIC Pacific Mining at the Sino Iron magnetite project, and we value the long-standing relationships we have with our clients at this pioneering megaproject.

The current CPM contract was novated from Downer to Maca, following the acquisition of the Mining West business, and it's pleasing to have now secured this three-year extension.

About the Maca share price

The Maca share price has surged by around 80% in the past 12 months. Year to date, however, Maca shares are down around 12%.

Based on the current share price, Maca has a market capitalisation of around $355.3 million, with 341.7 million shares outstanding.

The post Why the Maca (ASX:MLD) share price is edging higher today appeared first on The Motley Fool Australia.

This follows a company update on the ASX gold miner's King of the Hills project.

What milestones did Red 5 report?

The Red 5 share price is lifting after the company reported it has cleared a key legislative hurdle and moved forward with an engineering contract at its King of the Hills gold mine in Western Australia.

On the legislative side, the company reported that the Department of Mines, Industry Regulation and Safety has approved its mining proposal for King of the Hills. This paves the way for Red 5 to recommence mining at the gold mine in 2022. The first gold production is forecast for the June 2022 quarter.

Red 5 also reported it has approved Phase 2 of its engineering, procurement & construction contract. Maca Ltd (ASX: MLD), Red 5's engineering and construction contractor, is now expected to speed up the deployment of its crew over the next months. According to the company, the Phase 2 project is $10 million under budget.

The company said it was finalising the debt financing for King of the Hills with a Tier-1 banking syndicate. It expects that to be complete in the March 2021 quarter.

Commenting on the achievements, Red 5's managing director Mark Williams said:

With all major mining approvals now in place and the debt funding process on track for completion this quarter, Red 5 has approved Phase 2 of the EPC contract. This will allow MACA Interquip to ramp-up the mobilisation of their construction teams over the coming months.

The manufacture and delivery to Australia of all key long-lead items for the plant is also well on track, which will help to ensure that key construction and installation milestones can be achieved once construction of the plant moves into full swing in the second half of this year.

Red 5 share price snapshot

It hasn't been an easy 12 months for Red 5 shareholders, with shares down 42% since this time last year. In comparison, the All Ordinaries Index (ASX: XAO) is up 9% over that same time.

Year-to-date, the Red 5 share price is down 31%.

The post Why the Red 5 (ASX:RED) share price is lifting 6% today appeared first on The Motley Fool Australia.

What's driving the Downer share price?

Investors appear to be mildly pleased by the company's latest market update, gradually driving the Downer share price higher.

According to its release, Downer has entered into an agreement to sell its mining services business, Open Cut Mining West, to Maca Ltd (ASX: MLD).

This follows Downer's announcement earlier this month it was selling 70% of its laundry business to Adamantem Capital for $155 million. In addition, Downer announced at the same time it had refinanced its debt obligations through a $1.4 billion loan facility.

The sale of the Western Australian asset will include fleet and inventory, current liabilities, and the swapping over of existing contracts.

Downer is set to receive over $200 million in cash for the sale of the open cut mine. This will consist of $175 million for the asset itself, and around $30 million to provide flexibility within working capital. A deferred amount of $66 million will be paid in 12 equal-monthly instalments to Downer once the transaction is completed.

Pending customary conditions being met, Downer expects completion of the sale to happen early next year.

Downer CEO remarks

The CEO of Downer, Mr Grant Fenn, spoke about the company's direction in trimming down its mining operations.

An important part of our Urban Services strategy is to exit our capital-intensive Mining business. The sale of Open Cut Mining West follows the sale of Downer Blasting Services, the Snowden consulting business and our share in the RTL Mining and Earthworks joint venture. The proceeds received from these four transactions is in line with the carrying value of these businesses.

We remain in active discussions with a number of interested parties in relation to the other parts of the Mining portfolio namely Open Cut Mining East, Underground, and the Otraco tyre management business.

How has the Downer share price performed in 2020?

The Downer share price is still a long way from reaching its pre-COVID highs, at which time it was tracking at around $8 to $9.

Since reaching a multi-year low of $2.59 in March, however, Downer shares have recovered 105%. The company currently has a market capitalisation of $3.7 billion.

The post Downer (ASX:DOW) share price edges higher on divestment news appeared first on The Motley Fool Australia.

Why is the Red 5 share price in focus?

Located in the eastern goldfields region, King of the Hills, has been in production since 2018 from the rich gold veins mined via underground mining. However, the company has identified a bulk mining opportunity to mine lower grade deposits between the rich seams. Consequently, the resource estimate raised to 90.7 Mt at 1.4 g/t Au for 4.07 Moz of contained gold.

MACA has a strong track record of the construction of similar carbon‐in‐leach (CIL) processing plants. In addition, spending will total $143 million at completion of this contract, which is 82% of the total capital budget of $188 million.

Other commitments besides this contract include;

• Purchase of 240‐bed camp accommodation, water and waste water treatment plants and central facilities;
• Design and construction contract for a 450‐person village;
• 6Mtpa gyratory crusher and 4Mtpa SAG mill; and
• Early Works Agreement with APA Group (ASX: APA) for the gas pipeline lateral.

The EPC contract provides for two phases. The first is limited to $50 million and Phase 2 is for the remainder of the contract value, which will be released at the discretion of Red 5, based on the status of debt financing.

The Red 5 share price has been flagging over the past month, falling 11.2% after rising early in the year. 

Management commentary

Red 5 managing director Mark Williams counts the awarding of the EPC contract as an important milestone for the company. Moving it a step closer to being a mid-tier, multi operational gold miner:

Our decision to award these key contracts and make commitments to significant long‐lead items prior to completing project debt funding reflects our confidence in the robustness of the King of the Hills Project.

Importantly, the commitments made to date are below budget for this stage of the KOTH Project, and should give our stakeholders confidence that we are well on track to progress the  development of this major project, with production planned to start in June Quarter 2022.

Company performance

The Red 5 share price has seen a volatile year and is presently 16.6% down in year to date trading. It is currently selling at a price to earnings (P/E) ratio of 85.67. King of the Hills is a major gold deposit and within the nation's top 20 gold deposits.

By comparison, market darling Bellevue Gold Ltd (ASX: BGL) contains 2.2 Moz, albeit at a far higher grade.

The post RED 5 (ASX:RED) share price in focus as gold production nears appeared first on The Motley Fool Australia.

Maca is a mining and civil construction company that provides contract mining, civil earthworks, crushing and screening and material haulage solutions in Australia.

What did Maca report?

Maca delivered a half year net profit of $12.0 million for the first half of FY20, which was up by 48% on the prior corresponding period (pcp). Revenue came in at $364 million, which was up by 12% on pcp.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the company saw a dramatic increase of 97% to reach $54.4 million. This EBITDA result was consistent with its previously advised FY20 EBITDA guidance of between $104 and $110 million.

The company declared an interim dividend of 2.5 cents per share, payable on 19 March 2020.

Operational update

The company noted that contract mining operations during the half continued for a range of projects, including its contract for Regis Resources at the Duketon South and Duketon North operations, and for Ramelius Resources at the Mt Magnet operations.

Internationally, Maca noted that it has ceased operations for Avanco Resource, which is now fully owned by Oz Minerals Limited (ASX: OZL), at the Antas project in Brazil. The company continues to develop its Okvau mine for Emerald Resources in Cambodia, with Maca preparing to gear up for a commencement nearing the end of calendar year 2020.

Future developments and prospects

Maca commented that its activity pipeline within the mining sector remains strong and feels that it remains well placed to benefit from the consolidation that is currently underway within the contracting space.

The company anticipates that its civil and infrastructure divisions will deliver significant revenue growth during the second half of FY20.

The company reaffirmed its previous revenue guidance of $770 million and EBITDA guidance of between $104 million and $110 million for the full year. This guidance is supported by its recent mining services wins, further civil construction awards in Victoria, and by its work in hand, which is now sitting at $2.4 billion.

The post This ASX mining share just reported 97% earnings growth appeared first on The Motley Fool Australia.

Four shares that have not let that hold them back today are listed below. Here's why they are storming higher:

The Data#3 Limited (ASX: DTL) share price has jumped 7.5% to $4.34. This morning the technology solutions company provided an update on its expectations for the first half. Data#3 revealed that it expects to report consolidated net profit before tax (NPBT) at the top end of its guidance range of $11 million and $12.5 million. This compares to the $9 million it achieved in the prior corresponding period.

The Maca Ltd (ASX: MLD) share price is up 2% to 99.5 cents. This morning the mining and civil services company advised that it will cease operations in Brazil this month. This follows the early termination of the contract at Antas for Oz Minerals Limited (ASX: OZL). This news was offset by several new project awards. One is a $9.5 million construction contract by VicRoads for the Bacchus Marsh Road Stage 2A Safety Improvements.

The Pact Group Holdings Ltd (ASX: PGH) share price has risen 3.5% to $2.78. Investors have been buying the packaging company's shares in response to news that it is planning to divest its Contract Manufacturing division. Management believes this will simplify its business, generate stronger returns for shareholders, and strengthen its balance sheet.

The THC Global Group Ltd (ASX: THC) share price has rocketed almost 12% to 43 cents. The cannabis company's shares have raced higher after it announced that the Australian Therapeutic Goods Administration has granted it a licence to manufacture therapeutic goods from its Southport Facility. Management revealed that it will now seek to complete negotiations for the export supply of cannabis medicines.

The post Why Data#3, Maca, Pact Group, & THC Global shares are storming higher appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are sinking lower:

The Bank of Queensland Limited (ASX: BOQ) share price has tumbled 5.5% lower to $8.16 after successfully completing its $250 million institutional share placement. The bank revealed that it raised the funds at the very top of its price range at $7.78 per new share. This was a 10% discount to the last close price. These funds will be used to strengthen its balance sheet and lift its CET1 ratio.

The Maca Ltd (ASX: MLD) share price is down over 4% to $1.14 despite there being no news out of the building materials company. The catalyst for this decline could be an update out of Brickworks Limited (ASX: BKW) this morning at its annual general meeting. Brickworks warned that its Australian operations would be the weak spot in FY 2020. This may have sparked fears that Maca could underperform this year.

The Technology One Limited (ASX: TNE) share price is down 3.5% to $8.67. This decline could be due to profit taking after the enterprise software company's shares raced higher this month. Investors were buying Technology One's shares after it released a strong full year result last week. Management also spoke positively about its long-term growth potential thanks to its SaaS business.

The Volpara Health Technologies Ltd (ASX: VHT) share price is down 3% to $1.68. The healthcare technology company's shares have fallen heavily since the release of its half year update last week. Volpara reported very strong annual recurring revenue (ARR) growth to NZ$15.7 million. However, its guidance for the full year was a touch underwhelming.

The post Why Bank of Queensland, Maca, Technology One, & Volpara are sinking lower appeared first on The Motley Fool Australia.

Sharesight has a large amount of retail share traders so its records should give a pretty good idea of what are the most popular shares to buy and sell.

If a stock is being bought or sold heavily it's a good indicator of sentiment if nothing else. Over the short term sentiment can drive shares higher or lower, but over the medium term it's not really relevant as only financial results or earnings send shares higher or lower.

Still, let's take a look at some of the 10 most heavily traded shares for the week to November 25 according to Sharesight subscribers.

1. AfterPay Touch Group Ltd (ASX: APT) the buy-now-pay-later startup is very popular due to its huge growth and its seemingly successful start to its push into the giant US market.
2. Coles Group Limited (ASX: COL) is being heavily bought by retail investors probably due to the strong reputation of the Coles supermarkets.
3. CSL Limited (ASX: CSL) is an $80 billion healthcare giant that saw a little more buying than selling over the week as it divides the bulls and bears.
4. The A2 Milk Company Ltd (ASX: A2M) saw marginally more buying, and it recently produced yet another very strong sales and trading update at its AGM.
5. Maca Ltd (ASX: MLD) saw some heavy buying, even after the mining services business issued a November 14 profit warning.
6. National Australia Bank Ltd (ASX: NAB) saw marginally more buying as this dividend favourite remains popular despite facing some headwinds due to the falling housing market.
7. Wesfarmers Ltd (ASX: WES) saw some buying perhaps in reaction to new broker assessments of the newly structured investment conglomerate.
8. Telstra Corporation Ltd (ASX: TLS) is a favourite of retail investors probably due to its market leader status and reputation as a dividend stock.
9. BHP Billiton Limited (ASX: BHP) is another widely held favourite of mum and dad investors, its scale across the mining industry means it's no surprise to find it on the list.
10. Citadel Group Ltd (ASX: CGL), the software business saw some heavy selling perhaps on valuation grounds.

Remember this is just Sharesight's record of some of the most popular shares to trade for retail investors. The bottom line is that the only thing that really counts when it comes to share market investing is making money.

As such The Motley Fool knows of five shares that might thump the returns of the above….

The post Here are the 10 most heavily traded shares by retail investors over the last week appeared first on The Motley Fool Australia.

Four shares that have fallen more than most today are listed below. Here's why they have dropped lower:

The Aveo Group (ASX: AOG) share price has fallen 6% to $1.60. The retirement communities company's shares have come under pressure for a second day in a row after being downgraded by analysts at Macquarie this morning. The broker was disappointed with Aveo Group's sales guidance downgrade on Wednesday and doesn't expect trading conditions to improve in the near term.

The FBR Ltd (ASX: FBR) share price has given back a lot of yesterday's gains and is down 9.5% to 19 cents. The robotics company's shares rocketed higher yesterday after it revealed that it has successfully demonstrated its robotic home building technology by building a 180-metre squared, 3-bedroom, 2-bathroom home structure in less than the targeted total elapsed time of three days. Day traders appear to be taking profit today.

The Maca Ltd (ASX: MLD) share price has crashed 27% lower to 85.5 cents after the mining and civil construction company provided a market update at its annual general meeting. Due largely to a tightening labour market, the company advised that it has experienced margin pressure in its core mining division. As a result, first half net profit after tax is expected to be approximately $7 million to $9 million. This compares to $12 million in the prior corresponding period, which itself was down 28% from a year earlier.

The Syrah Resources Ltd (ASX: SYR) share price has dropped almost 3% to $1.73 despite there being no news out of the graphite miner. Its shares have now fallen by almost 16% since this time last week. Prior to that Syrah's shares had been strong performers following news that production had recommenced at Balama and that the company had signed a sales agreement with Qingdao Taida-Huarun New Energy Technology.

The post Why these 4 ASX shares are dropping lower today appeared first on The Motley Fool Australia.

But I think it's in buy territory, here's why.

It has prevailed

Maca Ltd reported its FY18 results on August 27 with revenue growth of 13% from $497.9 million in FY17 to $562.6 million in FY18 and a net profit attributable to members of $23.6 million – despite some serious headwinds over the period.

Wet weather hampered Maca's operations quite substantially in the second half and write downs in the first half were also a major impediment.

But Maca held on, delivering EBITDA of $78.8 million at a margin of 14% and declaring a fully-franked 3.5c per share dividend, with a forecast of $620 million in FY19 revenue.

The company is focusing efforts on improving its operational efficiencies, which should hold it in good stead for its planned growth as there looks to be plenty to look forward to in its project pipeline.

Some of the projects include:

• A two-year $85 million Pilbara Pilgangoora project
• Recent wins in its civil and infrastructure business in Victoria
• Extended tenure at Regis Resources Limited's (ASX: RRL) Duketon South Operations for five years as of July
• Continuation of its Ramelius Resources Limited (ASX: RMS) Mt Magnet project with a contract value of more than $100 million
• Commencement of the Minjar Gold Gossan Hill $11 million contract in March
• A contract on Carabella Resources' Bluff Coal Project
• A $6 million contract by AngloGold Ashanti
• Progression with Avanco Resources' international Antas project, and
• Investigation of opportunities in Brazil and Cambodia.

There's a lot on Maca's plate, but the company seems to be primed to leverage it.

It is net cash

According to its FY18 results, Maca's balance sheet looks strong.

The company has net cash of $108.2 million, and an order book of $1.28 billion – up from $1.13 billion in FY17. It also has relatively low debt of $44.9 million.

With a comfortable PE ratio of 14.5 at today's share price, an attractive dividend yield of 4.92% along with good historical dividend payments and NTA of $1.19 (around 90% ) – Maca certainly appears to have plenty of value in it.

Its assets are building, and financial discipline seems to be a strength – this looks to be a winning formula.

It is a smooth operator

Maca's team appear to have a good understanding of its financials, which is a good sign.

A first-half report forecast FY18 revenue of $560 million – and Maca delivered $562.6 million.

Its growth strategy is underpinned by winning new work while performing for existing clients. If the company is successful in diversifying into new markets, services and commodities, it could hit a period of impressive growth.

In terms of buying opportunities there looks to be no time like the present for Maca, with its shares down 1.8% to $1.32 today – a drop from a price of $2 at this time last year.

One to keep highlighted on your watch list for certain.

The post Why I think Maca Ltd shares look a buy now appeared first on The Motley Fool Australia.

Just ask Webjet Limited (ASX: WEB) and MACA Limited (ASX: MLD) shareholders.

Who is Joel Greenblatt?

Joel Greenblatt is a famous — and hugely successful — US investment manager. His hedge fund, Gotham Capital, is believed to have delivered an average yearly return of 40% over the years 1985 to 2006. That turns $10,000 into over $8 million.

Greenblatt authored the funny, easy-to-read and simple book called The Little Book That Beats the Market.

So what?

In the book, Greenblatt details a simple "Magic Formula" for sharemarket success, which requires investors to buy shares in quality companies when they're cheap.

Sounds simple, right?

Yes, it's simple. But it is not easy.

Why?

Most people are too scared to hold some of the shares that the formula tells us to buy.

Returns in Action

Going on three years ago, my colleague Matt Joass, CFA, wrote this article and provided a list of 30 shares which would have been produced by the "Magic Formula" on the ASX:

In 2014, the mining sector was on its knees and mining services companies were being thrown out. China's slowdown was going to wreak havoc on these companies, or so we thought.

Based purely on share prices (no dividends), the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is up 10.4% since that time.

Although it is not exactly correct I excluded the companies from Matt's list that were smaller than $100 million in market capitalisation. I also excluded Premiere Eastern Energy (ASX: PEZ) because it had a share price of $0 according to the table.

The result?

Drum roll, please…

Adjusting for takeovers and mergers, the average return of these $100m+ companies in the Magic Formula was almost 51%. In other words, almost five times the return of the market, excluding dividends.

I think you will admit, that's a pretty handy return over three years.

Foolish Takeaway

I'm always sceptical (skeptical?) of quantitative or 'formulaic' investing strategies. However, the Magic Formula is simple, logical and well supported by research. If nothing else it would provide a useful starting point for investment ideas.

As a bonus, the book is easy-to-read and short, so you could get the low-down on the formula for less than $20 and a weekend of reading!

The post Is this the "Magic Formula" to investing in ASX shares? appeared first on The Motley Fool Australia.

Equally, there's a vast number of ways to lose money!

A recent article in the Australian Financial Review (AFR) drew attention to where one top performing fund manager, Mr David Paradice, has been finding winners.

Here are five stocks which Mr Paradice has bought for portfolios he manages, which have all doubled in value in the past year.

Bradken Limited (ASX: BKN) is a leading provider of supplies and services for earth-moving equipment. The group's operations were affected by the mining downturn with the share price tumbling from around $9 in early 2011 to just 37 cents.

Since hitting that low of 37 cents in January 2016 the stock has rallied to currently trade above $2. It appears Mr. Paradice timed his entry well – his funds went substantial in August – which was around the time that Bradken's management announced a restructure of the business model and reaffirmed EBITDA guidance of $108 million for the 12 months ending 31 December 2016.

Galaxy Resources Limited (ASX: GXY) is exposed to the "hot" commodity of lithium. Lithium has become a popular commodity amongst investors with demand expected to grow significantly thanks to increased usage of batteries for cars and electricity storage.

With lithium mining operations spanning Australia, Canada and Argentina, Galaxy's share price has soared 1,100% in the last year!

With the gold price soaring over the past year too (with Australian producers getting an added boost from a weaker domestic currency), Beadell Resources Ltd (ASX: BDR) and Saracen Mineral Holdings Limited (ASX: SAR) shares have performed strongly.

Both stocks are up over 100% since the beginning of the calendar year, providing juicy returns for Paradice compared with his respective entry prices.

Maca Ltd (ASX: MLD) is a mining and civil construction company with significant exposure to the Western Australian economy. This exposure has led to a significant contraction in earnings and likewise in its share price, but importantly the balance sheet and order door are strong.

Since buying a swath of shares in March 2016, Paradice has enjoyed a share price rise of around 100%.

Foolish takeaway

All of these companies have something in common – they operate with exposure to the resource sector. Not all stocks exposed to the resource sector have rallied, as in some cases the market has accurately reassessed forward expectations.

Arguably, the reason why Paradice has been successful in each of these five instances is because he has identified stocks where the market had become unduly pessimistic about the company's future potential. This pessimism resulted in a temporary dislocation between price and value which he has profited from.

The post This fund manager just doubled his money with these 5 share picks appeared first on The Motley Fool Australia.

Not surprisingly, Wall Street rallied, jumping over 160 points, and the Nasdaq closed at yet another record high.

Quoted on Reuters, UBS portfolio manager Alan Rechtschaffen said…

"We are in a pretty good environment for stocks… When you are comparing things to the low interest rates we have, things can look attractive that wouldn't look attractive in a normal interest rate environment."

He's stating the obvious, of course.

In comparison to US interest rates of just 0.25%, just about EVERYTHING looks attractive except for cash.

Even US Federal Reserve Chairperson Janet Yellen agreed, saying asset valuations are "not out of line with historical norms."

Here in Australia, our cash rate is a comparatively high 1.5%.

But perhaps for not much longer, with the AFR saying yesterday that most economists expect the RBA to cut the cash rate at least once more, with many tipping two moves lower.

I'm no maths genius, but by my calculations, that could bring the RBA's cash rate down to just 1%. Likely next year…

Buy EVERYTHING indeed… except term deposits, and for me at least, mining stocks!

Yesterday I publicly swore off buying mining stocks… the same day an article in the AFR said top fund manager Paradice Investment Management had taken big stakes in many of the highest flying stocks in the All Ordinaries index.

Yep, you guessed it… all were mining stocks.

Bradken (ASX: BKN), up 341% year to date.
Galaxy Resources (ASX: GXY), up 187% so far this year.
Beadell Resources (ASX: BDR), up 221% in 2016.
Maca Limited (ASX: MLD), up 131% year to date.
Saracen Mineral Holdings (ASX: SAR), up 150% so far in 2016.

With returns like that on offer, why wouldn't you invest in mining stocks?

Each to their own. Unlike most other sectors, to be a successful investor in mining stocks requires exquisite timing.

And nerves of steel, because the time to buy mining stocks are when the days are darkest.

I'm happy to leave that game to the experts. The people who make the site visits. Who meet the management. Who know the sectors, and the key drivers. Who watch these things like hawks.

I simply don't have the time, or the inclination, to invest in mining stocks, notwithstanding that we ALL love a massive winner.

There's more than one way to skin a cat. And my way is to follow the experts at our own Motley Fool advisory services.

Like me, they don't touch mining stocks.

They prefer the Warren Buffett way — pay a fair price for a wonderful company, run by a great management team, and sit back and let time, and compounding returns, be your friend.

The results have been outstanding, with the scorecards for all five of our Motley Fool Australia advisory services comfortably out-performing the All Ords index.

Yesterday I wrote about how our resident dividend expert Andrew Page's recommendation of Retail Food Group (ASX: RFG) was up over 60% for the Motley Fool Dividend Investor scorecard.

Nice going, Andrew.

What I neglected to mention — and I was reminded as such — was that our resident growth stock expert, Scott Phillips, was ahead of even Andrew on Retail Food Group.

His recommendation of RFG, to members of his Motley Fool Share Advisor service, is currently up over 175%, with a bullet.

Move aside, Andrew…

I'm a lazy investor.

I want someone to just tell me what do. What to buy. When to buy. When to sell.

And although I love my dividends, I also love my capital gains, especially when they involve me doing nothing but letting my winners run.

Scott Phillips has an uncanny knack of picking such winners, including one that's up over 700% for the Motley Fool Share Advisor scorecard.

Nice going, Scott… and thanks, because I'm on board for the ride, too.

No mining stocks. No speculative penny stocks. Just great companies trading at fair prices. The perfect "lazy investor's" stocks.

Scott dropped me a note yesterday….

"I think you'll like this week's new buy recommendation."

He's right. I do like it. And just for the record, in accordance with our own internal trading rules, I am precluded from buying the stock until at least two full trading days after it is revealed to Motley Fool Share Advisor members.

The company ticks all the boxes of a classic growth stock, one you could stick in the bottom drawer and pull out in five years time, finding it might have doubled, trebled or even more.

Profitable. Attractive profit margins. Growing quickly. It even pays a fully franked dividend.

Find out its name by grabbing a 12 month membership to Motley Fool Share Advisor. I've even gone ahead and knocked up to 60% off my already low price. Click here to start now.

Although not cheap, even Janet Yellen might agree its valuation is "not out of line with historical norms."

The post One lazy investor's method for beating these choppy stock markets appeared first on The Motley Fool Australia.

That's according to the Reserve Bank of Australia's new governor Phillip Lowe. In his opening speech to the House of Representatives Standing Committee on Economics, Mr Lowe said, "While mining investment still has some way to fall, our estimate is that around three-quarters of the total decline is now behind us."

That could be either good news or bad news for construction and engineering firms like Monadelphous Group Ltd (ASX: MND), Bradken Limited (ASX: BKN), Ausdrill Limited (ASX: ASL), Maca Ltd (ASX: MLD) and RCR Tomlinson Limited (ASX: RCR).

It could mean that the sector is through most of the rough patch and that a recovery is ahead. It could also mean that revenues and earnings are still going to fall in the short term.

That's fairly evident when you consider Monadelphous' annual financial results over the past five years. Revenue growth is going backwards and accelerating as are profits as the table below shows. As good as Monadelphous' management have proven themselves to be, the waves sweeping through the sector are affecting even the best companies – and there's not much that they can do about it.

Source: Company reports

From an 11% fall in revenues in 2014, to a 20% fall in 2015 and a 27% fall in 2016, 2017 could be even worse and likely to magnify the fall in net profit as well.

Other mining services companies didn't fare as well. Maca saw its net profit more than halve in 2016, falling from $54.4 million to just $24.2 million. RCR Tomlinson saw its underlying net profit sink from $51.4 million in 2015 to $20.1 million.

The problem for investors jumping into mining services companies now is that the current dividends are likely unsustainable. Monadelphous has cut its dividend each year of the past four years and 2017 is likely to be the fifth consecutive year.

That's why the current dividend yield of 7% at the current price of $8.63 is misleading.

Foolish takeaway

Trading on a P/E of ~12x, Monadelphous doesn't appear cheap enough to compensate investors for the almost certain plunge in earnings and dividends in the 2017 financial year. Beyond that, we could begin to see a recovery in the sector.

The post Mining services companies yet to face the worst appeared first on The Motley Fool Australia.

Galaxy Resources Limited (ASX: GXY) has seen its share price rocket 1,200% in the past 12 months, Orocobre Limited (ASX: ORE) is up a measly 158% and Pilbara Minerals Ltd (ASX: PLS) an easy 378%.

But their best gains might be behind them, and investors might want to look at another sector that surprisingly is hotting up.

Having being pummelled into the earth, the mining services sector may be showing signs of a recovery, and companies in that sector reporting reasonably positive outlooks. Some fund managers have already cottoned on to the potential, but most have yet to rediscover it.

Yesterday I wrote about NRW Holdings Limited (ASX: NWH), which saw its share price explode 45% higher to 58 cents and closed even higher at 61.5 cents – after reporting a much-improved result. NRW's commentary also said there were 'signs of stability in resources and infrastructure, with increasing tender opportunities'. Even at current prices, the shares look cheap – trading on a P/E of ~7.7x.

GR Engineering Services Ltd (ASX: GNG) saw its share price jump 15% to $1.63 on August 9, after the resources contractor upgraded its earnings forecasts, as we reported here.

Ausdrill Limited's (ASX: ASL) share price is up 380% so far this year, and 28% in the past month, after selling a number of non-core businesses and being awarded a contract for additional works on Perseus Mining Limited's (ASX: PRU) Edikan Gold mine in Ghana. The contract is worth US$120 million in revenues over 42 months.

Austin Engineering Ltd (ASX: ANG) has seen its share price rise 75% in the past month, despite no price-sensitive announcements in that time.

Maca Ltd (ASX: MLD) has seen its share price rise 72% in the past three months, and Paradice Investment Management increased its holding to 7.192% in July.

Heavy engineering group Bradken Limited (ASX: BKN) also recently announced that it expected an improved second half of the 2016 financial year and reconfirm its previous guidance.

The signs appear to be that the worst is behind the sector and the booming gold price, an iron ore price above US$60 a tonne and other commodity prices rising may be adding to the tailwinds.

Foolish takeaway

The average share price gain across 24 of the largest construction and engineering companies on the ASX is 26% in the past month. More gains could be ahead, with many companies trading on low P/Es and even below book value.

The post Forget lithium, this is the next hot sector appeared first on The Motley Fool Australia.

As the construction and engineering sector table below shows, the average decline in share price is 58%, and only 3 companies out of 31 have managed to increase their share prices.

By comparison, the S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) is up 14.5% since early January 2013.

Data provided by: S&P Global Market Intelligence

But some fund managers have been playing that space for a while now with some success, while others are dipping their toes in. So, could now be the time to re-enter the mining services sector?

WAM Capital Limited (ASX: WAM) chairman and well-known fund manager Geoff Wilson thinks so, recently naming Southern Cross Electrical and Maca Ltd as two companies his funds have invested in. Ben Griffiths from Eley Griffiths also agrees that the worst could be over.

Forager Funds is another fund manager diving into the sector and recently held shares in MacMahon Holdings, GR Engineering and Service Stream. The 3 companies are up 15%, 18% and a whopping 76% since the start of this year. Some of these companies aren't really mining services companies – but provide construction and engineering services to other sectors such as telecommunications. Service Stream is one that is profiting from the roll-out of the National Broadband Network.

If the commodities cycle has bottomed as many commentators think, then it does suggest that the most likely course from here is upwards. If resources companies start opening their purses and spending that will be the key factor in the revival of the mining services sector.

Foolish takeaway

Many companies in the sector look very cheap. Monadelphous is trading on a trailing P/E ratio of 8.7x at the current price of $7.77, and GR Engineering on a P/E of just over 9x, and paying a fully franked dividend yield of more than 10%.

Now may be a perfect time to take an in-depth dive into the sector with the potential to uncover some gems.

The post Why this fund manager is ploughing back into mining services appeared first on The Motley Fool Australia.