Hot Stocks: The Reject Shop, James Hardie Industries, Gold Road Resources, Paladin Energy

The ASX 200 flirted with the 8,000-point mark this week as Trump tariffs were yet again centre stage. We saw the Federal budget handed down with tax cuts for Australians announced, which didn’t have any material effect on the sharemarket. Then inflation data came in softer than expected after the headline annual print slowed to 2.4% and remained within the RBA’s 2-3% inflation target range for 7 straight months now. Despite this, there is little expectation that the Central Bank will move on rates next week, but a May rate cut is in sight. Dividend payments were also a standout, marking one of the biggest weeks for dividend payments for the whole year, with around $13.6 billion being paid out to Aussie investors.

Let’s take a look at some of the stocks making headlines this week.

Australia’s biggest discount retailer The Reject Shop (ASX:TRS) got snapped up by retail giant Dollarama (TSX:DOL) in a $259 million deal. This will see the Canadian company acquire all outstanding shares in The Reject Shop for $6.68 a share, which represents a premium to the current share price. The board of The Reject Shop unanimously agreed that shareholders vote in favour of the deal, as Dollarama executives look to expand The Reject Store network in Australia, from around 390 to about 700 stores over the next nine years.?

Wall cladding and plasterboard group James Hardie Industries (ASX:JHX) is set to acquire outdoor decking and railings company AZEK Inc. (NYSE: AZEK) in a $14 billion cash and scrip deal. Despite investor concerns the deal is overvalued, James Hardie CEO, Aaron Erter said the deal accelerates the company’s growth strategy and James Hardie shareholder’s need to be taking a long-term view. 

Meanwhile, Gold Road Resources (ASX:GOR) rejected an unsolicited A$3.3 billion takeover bid by South African rival Gold Fields Limited. The Gold Road Board deemed the offer as materially undervaluing the company, especially considering the potential underground expansion of its Western Australian mine. Following the news Gold Road shares jumped to a record high.

Elsewhere, Uranium miner Paladin Energy (ASX:PDN) had a tough week after withdrawing its production guidance for FY2025 after the company blamed unseasonal heavy rainfall for its disruption to its Namibia mining operations. Despite the rainfall event, which the compnay said was a one-in-fifty-year occurrence, Paladin is expecting production levels to improve in the second half of this year.