Australia pledges to keep major Rio Tinto aluminum smelter open- WSJ

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Investing.com-- Australia’s government will work with Rio Tinto (ASX:RIO) to keep Tomago Aluminium, the country’s largest smelter,...

Investing.com-- Australia’s government will work with Rio Tinto (ASX:RIO) to keep Tomago Aluminium, the country’s largest smelter, operational after its current power contract ends in 2028, the Wall Street Journal reported on Friday citing comments from Prime Minister Anthony Albanese.

Albanese said the federal and New South Wales governments will work with Tomago on supplying the smelter with long-term, renewable energy.

Rio Tinto said earlier this year that it may be forced into shutting Tomago Aluminium once its current power supply contract with AGL Energy ends in 2028. Energy costs for the smelter are likely to increase substantially, leaving Rio searching for an “economically viable energy solution” to maintain long-term operations at the smelter.

Albanese said the goal is to agree to a fixed-price power-purchase agreement for the smelter, while also accelerating renewable energy generation infrastructure in NSW, the WSJ reported. Under a successful deal, Tomago would generate at least A$1 billion ($660 million) annually, Albanese said.

Tomago is a joint venture between Rio– the majority stakeholder, Gove Aluminium Finance, and Norway’s Norsk Hydro. The smelter has remained operational since 1983, and has capacity to produce up to 590,000 metric tonnes of aluminum per year.

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Australia Pledges Deal to Keep Giant Rio Tinto Aluminum Smelter Open

Dow Jones Newswires

Rio Tinto

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By Rhiannon Hoyle

Australian federal and state governments will work with Rio Tinto's Tomago Aluminium to keep the country's largest aluminum smelter open after its current electricity contract ends in 2028, Prime Minister Anthony Albanese said.

Tomago Aluminium, in which Rio Tinto holds a roughly 52% stake, said in October that it might need to shut the 42-year-old smelter once its power-supply contract Australian utility AGL Energy ends. It said it had been searching since 2022 for "an economically viable energy solution" beyond then, but hadn't found an option that would allow the operation to continue.

On Friday, Albanese said the Australian and New South Wales governments will work with Tomago on long-term, renewable-energy supply to keep the smelter viable.

"This is so important for our national interest," he said. "It's important we as a nation continue to make things here."

Albanese said the aim is to agree a fixed-price power-purchasing agreement for the smelter, as well as finance arrangements to accelerate renewable-energy generation and storage developments in New South Wales.

Under a successful deal, Tomago Aluminium would make at least 1 billion Australian dollars, or roughly $666 million, in investments over the next decade, he said.

Power-hungry smelters in many parts of the world have been strained by rising energy costs. In Australia, government officials recently announced support for Glencore's Mount Isa copper smelter and Townsville refinery, among others.

Electricity accounts for more than 40% of Tomago's operating costs, and the smelter is the single largest user of power in New South Wales, Australia's most populous state.

Discussions with federal and state governments on a power-supply solution reflect "our collective recognition of the importance of maintaining local manufacturing capability in Australia," said Tomago Aluminium Chief Executive Jerome Dozol. "We look forward to working collaboratively with government on this next phase."

Tomago Aluminium is a joint venture between Rio Tinto, Gove Aluminium Finance, which owns roughly 36%, and Norway's Norsk Hydro, which holds about 12%.

In operation since 1983, the smelter can produce up to 590,000 metric tons of aluminum annually, nearly 40% of Australia's total output of the metal.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

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Raamdeo Agrawal, Ramesh Damani and Sunil Mahtani on the power of compounding and their biggest 'investment misses'

Moneycontrol

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At the launch of the MOSL Wealth Creation Study, market veterans Ramesh Damani, Sunil Mahatani, and Raamdeo Agrawal spoke about the opportunities they missed, trades they wish they had held on to, and the lessons those experiences taught them about conviction, patience, and compounding.

Ramesh Damani admitted he had missed out on Bajaj Finance despite being familiar with the company and admiring its leadership. “My circle of confidence was in my backyard, and yet for some reason, I missed out when Bajaj Finance got listed,” he said, adding that “it was extraordinarily stupid of me… I know the hurt of missing a stock like that".

He also shared the story of Apollo Hospitals, a stock he had bought at Rs 20 in 1993. Over 25 years, it had grown 100x, but he sold during the COVID downturn at Rs 2,000. “I sold because I had made too much money, not because the fundamentals had changed,” he said. Damani added, “If you want to be Warren Buffett, you cannot make mistakes like that. Those are unacceptable mistakes.”

Sunil Mahatani, Owner and CIO at US-based Kingfisher Investors, recounted a similar experience in the US markets with Apple Inc. After Steve Jobs returned and launched the iPod in 2001, Mahatani recognised that the company was making a shift from a high-tech to a consumer-focused business. He sold after the stock doubled, missing out on gains that would eventually take Apple from a $4 billion market cap to over $4 trillion. “The opportunity got away simply because I thought there were cheaper opportunities elsewhere,” he said.

Mahatani’s "stock he missed" was not about a tech player but it was HDFC in 1989, a company he discovered while visiting India from the US.

“One that I didn’t buy, even though it looked absurdly cheap, was HDFC,” he said. “It was at around Rs 190, earning Rs 65 a share and paying an Rs 18 dividend. You were getting nearly 10%. And it had been compounding at 25% a year with a 25% ROE.” Mahantani did not have capital in India at the time, but he urged his father to buy. “I told him, ‘Buy some of this, it’s going to be good.’ He didn’t. A year later I was still telling him to buy. He still didn’t,” Mahatani said. “(At that time) Instead of spending money on a plane ticket, I should have just bought the stock,” he quipped.

Motilal Oswal co-founder Raamdeo Agrawal shared his own early experience with HDFC Bank, buying shares in 1995 at Rs 40 because he believed private banks would outperform PSUs. “I saw the HSBC building in Hong Kong, and I thought, our HSBC is going to be HDFC,” he said. However, shortly after buying, he heard news about one of HDFC’s partner banks and sold at Rs 52.50, never seeing the stock drop below that price again. “The lesson was simple: you have to stay with your conviction,” he said.

Agrawal also reflected on Bharti Airtel, which he bought in 2003 at Rs 25 per share despite skepticism from peers. Within a week, the price jumped to Rs 33–35, and he sold part of his holding. Yet he held on as the stock climbed to Rs 1,180, only selling when the 2G telecom scandal caused a temporary fall. Today, Bharti is one of India’s largest wealth creators. “When a business gains momentum and tailwinds, it can become a wealth-generating machine if you stay invested,” he said.

Highlighting genuine compounders, Agrawal noted that in the Motilal Oswal Wealth Creation Report, “Of the starting list of top 500 companies in 2008, only 35—just 7%—ended up as compounders. Their average price CAGR over 2008–2025 is a handsome 23%. The rare winners combine sustained growth, consistent outperformance, and strong leadership.”

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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Spotting Winners: LifeStance Health Group (NASDAQ:LFST) And Outpatient & Specialty Care Stocks In Q3

Stock Story

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The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how LifeStance Health Group and the rest of the outpatient & specialty care stocks fared in Q3.

The outpatient and specialty care industry delivers targeted medical services in non-hospital settings that are often cost-effective compared to inpatient alternatives. This means that they are more desired as rising healthcare costs and ways to combat them become more and more top-of-mind. Outpatient and specialty care providers boast revenue streams that are stable due to the recurring nature of treatment for chronic conditions and long-term patient relationships. However, their reliance on government reimbursement programs like Medicare means stroke-of-the-pen risk. Additionally, scaling a network of facilities can be capital-intensive with uneven return profiles amid competition from integrated healthcare systems.Looking ahead, the industry is positioned to grow as demand for outpatient services expands, driven by aging populations, a rising prevalence of chronic diseases, and a shift toward value-based care models. Tailwinds include advancements in medical technology that support more complex procedures in outpatient settings and the increasing focus on preventive care, which can be aided by data and AI. However, headwinds such as reimbursement rate cuts, labor shortages, and the financial strain of digitization may temper growth.

The 7 outpatient & specialty care stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

LifeStance Health Group

With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.

LifeStance Health Group reported revenues of $363.8 million, up 16.3% year on year. This print exceeded analysts’ expectations by 2.3%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ revenue estimates but EPS in line with analysts’ estimates.

“This was a record-breaking quarter for LifeStance,” said Dave Bourdon, CEO of LifeStance.

LifeStance Health Group pulled off the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 43.4% since reporting and currently trades at $6.88.

Is now the time to buy LifeStance Health Group? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Select Medical

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Select Medical reported revenues of $1.36 billion, up 7.2% year on year, outperforming analysts’ expectations by 2.7%. The business had a strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Select Medical scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.7% since reporting. It currently trades at $15.44.

Is now the time to buy Select Medical? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: DaVita

With over 2,600 dialysis centers across the United States and a presence in 13 countries, DaVita operates a network of dialysis centers providing treatment and care for patients with chronic kidney disease and end-stage kidney disease.

DaVita reported revenues of $3.42 billion, up 4.8% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue in line with analysts’ estimates.

DaVita delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.3% since the results and currently trades at $119.85.

Read our full analysis of DaVita’s results here.

U.S. Physical Therapy

With a nationwide footprint spanning 671 clinics across 42 states, U.S. Physical Therapy operates a network of outpatient physical therapy clinics and provides industrial injury prevention services to employers across the United States.

U.S. Physical Therapy reported revenues of $197.1 million, up 17.3% year on year. This number beat analysts’ expectations by 1%. Overall, it was a satisfactory quarter as it also put up a narrow beat of analysts’ revenue estimates.

U.S. Physical Therapy delivered the fastest revenue growth among its peers. The stock is down 8.8% since reporting and currently trades at $80.27.

Read our full, actionable report on U.S. Physical Therapy here, it’s free for active Edge members.

agilon health

Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.

agilon health reported revenues of $1.44 billion, down 1.1% year on year. This result surpassed analysts’ expectations by 1%. More broadly, it was a slower quarter as it logged full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.

agilon health had the slowest revenue growth among its peers. The company added 5,000 customers to reach a total of 503,000. The stock is flat since reporting and currently trades at $0.72.

Read our full, actionable report on agilon health here, it’s free for active Edge members.

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Openai Ceo Expresses Excitement About Launching In-House Ai Chip

Reuters

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Asia stocks surge as tech rebounds from Oracle jitters, China lags

Investing.com

Investing.com-- Most Asian stocks rose sharply on Friday, aided by a rebound in technology shares after the sector was rattled by doubts over the artificial intelligence trade stemming from U.S. cloud major Oracle.

Chinese stocks lagged as local chipmakers continued to decline on the prospect of increased competition from NVIDIA Corporation (NASDAQ:NVDA), which was recently authorized to sell more advanced AI chips in the country. Moore Threads (SS:688795), viewed as a potential Chinese competitor to Nvidia, slumped up to 13%.

Asian markets took some positive cues from Wall Street, as investors priced in a largely dovish outlook for the U.S. Federal Reserve, which earlier this week cut interest rates and outlined plans to resume its stimulative asset purchasing activities. Wall Street logged a mixed Thursday session as losses in Oracle (NYSE:ORCL) and tech shares limited overall gains, although the S&P 500 and the Dow Jones Industrial Average still hit record highs.

S&P 500 Futures were flat, while Nasdaq 100 Futures fell nearly 0.2% by 20:58 ET (01:58 GMT), with the latter pressured by a 5% drop in Broadcom (NASDAQ:AVGO). While the AI server chips maker did clock bumper earnings, its outlook on orders and exposure to OpenAI weighed.

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Japan, S.Korea stocks surge as tech rebounds

Japan’s Nikkei 225 jumped 1.1%, while South Korea’s KOSPI surged 1.3%, with both indexes boosted chiefly by gains in tech and industrial shares.

Japan’s TOPIX index added 1.5%, while Hong Kong’s tech-heavy Hang Seng index surged 1%.

Tech shares rebounded from Thursday’s losses, aided in part by some bargain buying as investors bet that outsized AI demand will still benefit a bulk of the sector.

Positive top and bottom-line earnings from Broadcom Inc (NASDAQ:AVGO) also aided sentiment, although the stock slid some 5% in aftermarket trade on concerns over smaller margins and doubts over revenue commitments from OpenAI. But the company signaled that outsized spending on AI, by Wall Street’s biggest companies, remained largely on track.

Broader non-tech Asian stocks also advanced, tracking a dovish outlook for the U.S. Fed. The central bank said it will begin buying back $40 billion of Treasuries per month, boosting market liquidity levels.

Australia’s ASX 200 index surged 1.1%, as did Singapore’s Straits Times index. Futures for India’s Nifty 50 index were flat with focus squarely on renewed trade talks between New Delhi and Washington.

China lags on chipmaker losses amid Nvidia competition concerns

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes lagged their regional peers, falling between 0.3% to 0.5%.

Mainland Chinese markets were pressured by continued losses in local chipmaking stocks, as investors feared more competition from Nvidia. The U.S. chipmaker is set to begin selling more advanced AI chips in China, after U.S. President Donald Trump signaled he will approve the move.

Major chipmaker Hua Hong Semiconductor Ltd (SS:688347) slid nearly 9% in Shanghai trade, while Moore Threads Technology Co Ltd (SS:688795)– which has been pipped as a potential Chinese competitor to Nvidia– slumped as much as 13%, facing profit-taking after a stellar market debut last week.

Beyond tech, persistent doubts over the Chinese economy also weighed on local stocks, especially following underwhelming inflation readings earlier this week.

A diplomatic row between China and Japan, over the latter’s comments on Taiwan, also showed few signs of deescalating.

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Asia stocks advance as tech rebounds from Oracle jitters, China lags

Investing.com

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Updates moves, adds India open, China context

Investing.com-- Most Asian stocks rose on Friday, aided by a rebound in technology shares after the sector was rattled by doubts over the artificial intelligence trade stemming from U.S. cloud major Oracle.

Friday’s also came after most Asian markets logged a middling performance for the week, as caution over the Federal Reserve and tech valuations weighed on long positions.

Wall Street logged a mixed Thursday session as losses in Oracle (NYSE:ORCL) and tech shares limited overall gains, although the S&P 500 and the Dow Jones Industrial Average still hit record highs.

S&P 500 Futures were flat, while Nasdaq 100 Futures fell 0.2% by 23:23 ET (04:23 GMT), with the latter pressured by a 5% drop in Broadcom (NASDAQ:AVGO). While the AI server chips maker did clock bumper earnings, its outlook on orders and exposure to OpenAI weighed.

For more AI stock picks from top Wall Street analysts, subscribe to InvestingPro - get 55% off today

Japan, S.Korea stocks surge as tech rebounds

Japan’s Nikkei 225 jumped 0.8%, while South Korea’s KOSPI added 0.8%, with both indexes boosted chiefly by gains in tech and industrial shares.

Japan’s TOPIX index jumped 1.5%, while Hong Kong’s tech-heavy Hang Seng index surged 1.4%, brushing off losses in local chipmakers.

Tech shares rebounded from Thursday’s losses, aided in part by some bargain buying as investors bet that outsized AI demand will still benefit a bulk of the sector.

Positive top and bottom-line earnings from Broadcom Inc (NASDAQ:AVGO) also aided sentiment, although the stock slid some 5% in aftermarket trade on concerns over smaller margins and revenue commitments from OpenAI. But the company signaled that outsized spending on AI, by Wall Street’s biggest companies, remained largely on track.

Australia’s ASX 200 index surged 1.1%, as did Singapore’s Straits Times index. India’s Nifty 50 index rose 0.4% with focus squarely on renewed trade talks between New Delhi and Washington.

China lags on chipmaker losses amid Nvidia competition concerns

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes trimmed initial losses, but still lagged their regional peers for the day.

Major chipmaker Hua Hong Semiconductor Ltd (SS:688347) slid nearly 9% in Shanghai trade, while Moore Threads Technology Co Ltd (SS:688795)– which has been pipped as a potential Chinese competitor to Nvidia– slumped as much as 19%, facing profit-taking after a stellar market debut last week.

Beyond tech, persistent doubts over the Chinese economy weighed on local stocks, especially following underwhelming inflation readings earlier this week.

A diplomatic row between China and Japan, over the latter’s comments on Taiwan, also showed few signs of deescalating.

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