To The Moon

As of the close on Friday,$S&P/ASX 200(XJO.AU)$ closed at 7,325.30 points, down -1.06% in the past 5 days.

During the last 5 trading days,  $TPG TELECOM LTD(TPG.AU)$ was up 8.76%; $Gold Road Resources Ltd(GOR.AU)$ added 6.80%; $Treasury Wine Estates Ltd(TWE.AU)$ was up 5.56%; $PALADIN ENERGY LTD(PDN.AU)$ rose 5.44%; and $News Corp B DRC(NWS.AU)$ increased 5.18%.

1. $TPG TELECOM LTD(TPG.AU)$ +8.76%: Received A$6.3 Billion Offer From Vocus

On August 1, TPG Telecom, one of Australia's leading telecom firms, announced that it had received an offer from Vocus, a rival company backed by Macquarie, to purchase some of its non-mobile fibre assets for approximately A$6.3 billion.

The offer, which was non-binding, specifically targeted TPG Telecom's Enterprise, Government, and Wholesale (EGW) assets, as well as associated fixed infrastructure assets, including the wholesale broadband business Vision Network.

The news of the potential deal caused TPG Telecom's shares to surge by nearly 12%, with the stock closing at its highest level since May 15.

The EGW unit, which is part of the assets Vocus is interested in, contributed approximately 18% to TPG Telecom's total fiscal 2022 revenue of A$5.42 billion. On the other hand, Vision Network, which is also included in the offer, currently provides services to more than 410,000 homes in six major Australian capitals and three regional Victorian cities.

TPG Telecom has granted Vocus exclusive due diligence rights, which will be valid until September 6, allowing Vocus to thoroughly examine the assets before making a final decision.

2. $Gold Road Resources Ltd(GOR.AU)$ Surge 6.80% on Brokers’ Upgrade Amid Strong Q2 Performance

Gold Road Resources Ltd, an Australian gold miner, experienced a significant surge in its shares as two top brokers upgraded its price target after the earnings.

Macquarie, a brokerage firm, which raised GOR's stock rating from "neutral" to "outperform." Macquarie also retained a price target of A$1.90 for the stock.

Jefferies has also raised the gold mining stock to a buy with a $1.80 price target.

The upgrade came after Gold Road Resources reported better-than-expected performance for the second quarter of 2023. Additionally, the company's FY (full-year) AISC (all-in sustaining cost) guidance of between A$1,540 to A$1,660 per attributable ounce was lower than Macquarie's estimate of A$1,696/oz.

In the June quarter, Gold Road Resources reported total gold sales of 38,297 ounces at an average sales price of A$2,961 per ounce. Looking ahead, the Gruyere mine, operated by the company, is expected to produce between 320,000 and 350,000 ounces in FY23, surpassing the total output of 314,647 ounces recorded in FY22.

3. $Treasury Wine Estates Ltd(TWE.AU)$ Surges 5.56% on Jefferies' 'Buy' Upgrade Amid China's Tariff Removal

Treasury Wine Estates Limited operates as a wine company primarily in Australia, New Zealand, Asia, Europe, the Middle East, Africa, and the Americas.

Rally of Treasury Wine Estates came after Jefferies, a brokerage firm, upgraded TWE's stock rating from "hold" to "buy" and set a target price of A$13.00.

The positive news for the company was driven by China's decision to lift tariffs on Australian barley, which had been in place for three years. As a result, Jefferies estimates that TWE derives nearly A$200 million in earnings before interest and tax from China.

The removal of these tariffs is expected to boost TWE's earnings by approximately A$80 million, although it may take time to rebuild the supply chain to take full advantage of the improved conditions.

Additionally, Jefferies anticipates that the closure of Treasury Wine Estates' Karadoc commercial winery in North-west Victoria will help reduce costs, further supporting the positive outlook for the company.

 4. $PALADIN ENERGY LTD(PDN.AU)$ added 5.44%

Paladin Energy Limited develops, explores for, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments.

There is no price-sensitive news related to Paladin Energy. However, the market speculates uranium prices may go up.

The recent coup in Niger has led to projections of a potential uranium price hike. As Niger is a significant supplier of uranium and plays a crucial role in the global uranium market, any political instability or disruption in the country's uranium production can impact prices.

5. $News Corp B DRC(NWS.AU)$ +5.18% Employs AI to Generate News Stories

News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide.

The Data Local team, under News Corp, is utilizing AI technology to generate stories for hyperlocal mastheads in Australia. These stories cover a range of topics, including weather updates, fuel prices, and traffic reports. The AI-powered system is capable of producing around 3,000 local news stories per week, catering to specific areas and providing timely and relevant information to readers.

This AI-driven approach allows News Corp to efficiently create content at scale, ensuring that local communities receive up-to-date and customized news that is pertinent to their specific locations. By automating the generation of these hyperlocal stories, News Corp can streamline their news production process, improve coverage, and engage with a broader audience on a more targeted level.

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