The ASX followed yesterday’s strong performance with another day in the green today. The ASX 200 index closed 1.06% higher at 7386.4 points today and our darling Miners lead the bullish performance. Orocobre, Pilbara Minerals, Lynas, and Iluka were the top performers with Orocobre shares surging as much as 10%. The heaviest loser today was Zip.
It looks like the markets have shrugged off the fears from earlier in the week and growth has once again started to come in favour.
Telstra operates in 4 segments – Telstra Consumer and Small Business, Telstra Enterprise, Networks and IT, and Telstra InfraCo. Hated by their customers and then their investors, Telstra has finally decided to change from within by first fixing its broken corporate structure. The company is restructuring their business and given the positives it brings, TLS shares have been performing exceptionally well off late. Recently, Telstra announced the sale of 49% of Telstra’s Tower business for $2.8 billion to a consortium comprising the Future Fund, Commonwealth Superannuation Corporation and Sunsuper. Telstra’s Tower business is the largest mobile tower infrastructure provider in Australia with approximately 8,200 towers. The overall value of the business comes in at $5.9 billion, representing an FY21 pro forma EV/EBITDA multiple of 28x. Telstra expects net cash proceeds after transaction costs of $2.8 billion at completion and the Towers entity will have no debt. The deal is a milestone in the T22 strategy that Telstra is actively working on to unlock the value of their assets. It looks like the Telstra share price still has room to run.
Earlier this week, there was another catalyst for the TLS share price. Telstra said on Monday it was in talks to buy the Pacific operations of telecommunications firm Digicel Group in partnership with the Australian government, a move widely viewed as a political block to China’s influence in the region. Telstra said the government would finance the bulk of any bid for Jamaica-based Digicel, the largest mobile phone carrier in the Pacific with operations in Papua New Guinea, Fiji, Samoa, Vanuatu and Tahiti. TLS shares closed at $3.78 a share today – climbing 1.34% and has become a top quality growth stock once again.
Despite the border restriction putting a dent on international students coming to Australia for their education, IEL shares have performed extremely well. The $6 billion company, IDP Education is the largest stock on the ASX that offers exposure to the education sector Down Under. IEL shares have returned 83% in the past year and 48% in 2021. IEL shares have not just outperformed the ASX 200 index, but also outperformed several blue-chip companies that have not been affected by the pandemic. Earlier this month, IEL share price skyrocketed by 20.47% on a single day by market close. The reason – IDP Education announced an acquisition deal that will further strengthen their monopoly in the education sector. China and India have been the largest markets for our education sector. With Chinese-Australian tensions on the rise, it doesn’t take a wizard to come to the conclusion that India will play a much larger role for the education sector. IELTS is an English test that potential students would need to take up and achieve a satisfactory grade, and this test is required to not just move to Australia for education, but the USA and Europe as well. It is a globally recognised test and British Council were the operators of IELTS in India which has a population of a billion and research suggests that over 700,000 students go abroad every year.
IDP Education has entered into a binding agreement to acquire 100% of the British Council’s Indian IELTS operations for £130 million on a debt free, cash free basis. IDP and the British Council currently both administer IELTS tests in India operating parallel pan-Indian distribution networks. IEL has always been one of the best education stocks for investors Down Under. This acquisition strengthens their monopolistic position as it gives IDP complete control of the fastest growing region in the world. IEL shares closed $29.38 a share today – an all-time high IEL share price. IEL shares closed today at $29.09 – dropping by 0.92% and positioned well to be a good growth stock.
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