Stocks of the Hour: Bubs, South32, Codan & Vocus Group

Company News

by Michael Luu

Baby and children’s supplement manufacturer Bubs Australia (ASX:BUB) reported a dramatic 22 per cent increase in its share price yesterday, prompting market operator the ASX to approach the company for a justification. The infant formula producer has associated the price surge with no other reason but China’s new population strategy of encouraging families to have three children, boosting demand for Australian baby formula and other children-related supplements.

Shares in Bubs Australia (ASX:BUB) are trading 7.9 per cent lower at $0.38.

Eclectic mining heavyweight South32 (ASX:S32) has finally severed ties with thermal coal, following the completed sale of the company’s last coal business. The Perth-based miner has announced its divestment of the company’s interest in South Africa Energy Coal to a consortium led by Seriti Resources for approximately $9.4 million.

Shares in South32 (ASX:S32) are trading 1.7 per cent higher at $3.06.

Metal detection and radio technology developer Codan (ASX:CDA) has told investors the company intends to offload its mining-focused tracking division Minetec to Caterpillar.The transaction is comprised of an upfront consideration of an estimated $18 million and a deferred consideration subject to volume milestones for a five-year period.

Shares in Codan (ASX:CDA) are trading 1.5 per cent lower at $18.25.

The Australian Competition and Consumer Commission (ACCC) has dealt a regulatory blow to telco services provider Vocus Group (ASX:VOC), serving the company’s subsidiaries Dodo and iPrimus a $2.5 million penalty for false advertising.

Shares in Vocus Group (ASX:VOC) are trading flat at $5.46.

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