Day: January 18, 2021

Why the IOUpay (ASX:IOU) share price jumped 11% higher today

jump in asx share price represented by man jumping in the air in celebration

The IOUpay Ltd (ASX: IOU) share price was a strong performer this morning until fading in afternoon trade.

The payments company’s shares were up as much as 11.5% to 19.5 cents at one stage.

In late trade, the IOUpay share price is up 3% to 18 cents.

Why did the IOUpay share price jump higher?

Investors were buying the company’s shares this morning after the release of a positive announcement.

According to the release, IOUpay has secured a Malaysian Money Lending Licence which is required to comply with Malaysia’s Money Lending Act 1951 and Financial Services Act 2013. This licence will be used for the provision of buy now pay later (BNPL) service offerings to consumers and merchants in Malaysia.

The company secured the licence by acquiring 100% of the ordinary shares in licence holder Sibu Kurnia Marine in exchange for RM4,300,000 (A$1,375,000).

Management advised that it engaged two independent valuation experts and obtained formal valuation reports to determine an equity valuation of holder Sibu Kurnia Marine before settling on a buy price. Pleasingly, both reports provided values in excess of the final agreed consideration.

What now?

IOUpay believes this is an important milestone in the company’s plans to launch BNPL services in the country and notes that it is ahead of schedule.

The company’s chairman, Mr Lee Chin Wee, explained: “The completion of this critical milestone ahead of schedule enables the Company to now accelerate its plans to capitalise on the significant market opportunities in the BNPL and digital payments sectors as highlighted in our Corporate Presentation and Investor Update last year.”

“Notwithstanding the regional COVID-19 environment including the revised Movement Control Order (MCO) implemented by the Malaysian Government last week, the market conditions and demand for our product offerings remain strong which is consistent with the continued increased uptake in online purchases and payments across the South East Asia region last year,” he concluded.

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Returns as of 6th October 2020

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why the Bingo (ASX:BIN) share price is shooting 18% higher

recycling asx share price represented by bin holding piggy bank and coin

Bingo Industries Ltd (ASX: BIN) shares are rocketing higher today following the company’s response to media reports of a potential acquisition proposal. At the time of writing, the Bingo share price is trading at $3.23, up 17.9% from yesterday’s closing price.  

What’s driving the Bingo share price?

The Bingo share price is on the move today after the company released a response to media reports that it had received a takeover offer from CPE Capital. Describing the offer as an “unsolicited, highly conditional, non-binding, indicative proposal”, today’s announcement used a really good collection of words to let everyone know the acquisition is definitely not set in stone. 

The offer presented by CPE Capital comes with an indicative cash price of $3.50 per share, as well as a potential scrip alternative, and is currently being considered by a Bingo independent board committee.

According to Bingo, the proposal will be subject to several conditions, including due diligence and financing, if it proceeds.

Bingo’s latest investor presentation

During its latest investor presentation to UBS Group in November last year, Bingo claimed it had identified a five-year growth plan, invested in a strategic network of waste infrastructure, and strengthened the company’s overall financial position. 

Bingo also highlighted its capability to navigate through the COVID-19 pandemic and maintain solid momentum regardless of the associated lockdown restrictions.

During the presentation, Bingo further advised that all its FY20 development milestones had been reached and the company was now “utilising these assets to increase returns and cash flow”.

According to Bingo, the company is in a strong position with a well-developed pipeline of work spanning at least the next five years. 

Financial performance and sustainability

For FY20, Bingo finished up with underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $152.1 million. The company also gained a 21% boost to its revenue bringing it up to $486.7 million.

In addition to its key financial reports, Bingo also produces an annual sustainability report. According to the report, the company added value to society through various activities such as its school education program and donations to the Cancer Council. 

Bingo share price snapshot

Based on the current Bingo share price, the company has a market capitalisation of $1.8 billion with 654.3 million shares outstanding. Bingo shares reached a 52-week high of $3.47 in February last year just prior to the coronavirus-induced bear market.

The Bingo share price is currently trading a little over 8% lower than where it was this time last year.

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Leading brokers name 3 ASX shares to sell today

laptop keyboard with red sell button

On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

Bendigo and Adelaide Bank Ltd (ASX: BEN)

According to a note out of Goldman Sachs, its analysts have downgraded this regional bank’s shares to a sell rating but with an improved price target of $9.24. The broker made the move due to net interest margin risks and on valuation grounds. In light of this, it sees better value on offer elsewhere in the banking sector for investors. Goldman is also currently forecasting FY 2021 earnings that are notably lower than consensus estimates. The Bendigo and Adelaide Bank share price is trading at $9.66 on Tuesday.

Blackmores Limited (ASX: BKL)

Analysts at Citi have retained their sell rating and $60.60 price target on this health supplements company’s shares. According to the note, the broker’s research indicates that its rivals have been winning a greater share of the Chinese market. In addition to this, it sees difficulties from increased competition in the ANZ market and disruption in the daigou channel due to COVID-19. The Blackmores share price is trading at $72.03 this afternoon.

Pilbara Minerals Ltd (ASX: PLS)

A note out of Ord Minnett reveals that its analysts have retained their sell rating but lifted the price target on this lithium miner’s shares to 50 cents. According to the note, the broker has been looking into the resources sector and has lifted its price estimates for a number of commodities. And while the outlook for lithium is looking a lot more positive and Pilbara Minerals is performing well operationally, it believes the rise in its share price over the last three months has left its shares overvalued. The Pilbara Minerals share price is fetching $1.15 today.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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IOOF exec says she was sacked for mental illness

A man holds a law book and points his finger, indicating an accusation or alleged offence to be settled in court

IOOF Holdings Limited (ASX: IFL) has another legal battle looming with its own staff, after a former executive accused it of sacking her after it was informed she had a mental illness.

Ex-head of communications Dr Jane Rennie has claimed in court documents that the company dismissed her after she expressed a need to take personal leave or submit a WorkCover claim as a result of work stress, as first reported in the Australian Financial Review.

Rennie claims the company told her she would be redeployed, but she was made redundant less than a week after she reported her situation.

IOOF had not responded to requests for comment from The Motley Fool at the time of writing.

The finance company also allegedly didn’t consider her for any alternative positions after the redundancy, even though Rennie thought it was a “redeployment period”.

The former executive is requesting IOOF be ordered to return her to the job, plus reparations for loss of work, reputation damage and trauma.

IOOF has reportedly submitted in court papers that the redundancy was due to a corporate restructure. 

It also denies that Rennie had flagged she needed to take leave or apply for worker’s compensation. The company claims Rennie declined an offer to take personal leave.

The IOOF share price is up 1.50% on Tuesday afternoon, trading at $3.72.

IOOF’s culture in the spotlight

The serious allegations come just days after 2 male executives were accused of sexual harassment and discrimination.

In a separate court case, deputy chief investment officer Stanley Yeo was accused of inappropriate touching and remarks towards a female staffer.

Among many instances listed in legal documents, Yeo is alleged to have touched the woman’s breasts at her own wedding in front of family and friends.

The same woman accuses head of fixed interest assets Osvaldo Acosta of discrimination on the basis of gender.

When the alleged victim offered her input on a work matter, Acosta is accused of saying “You always give your opinion. Not only do I have a wife at home, I have you here in the office”.

The woman is asking the court to order IOOF to compensate her for loss of opportunity and loss of future income, plus provide damages for humiliation and distress.

The IOOF scandals come after fellow finance giant AMP Ltd (ASX: AMP) had a shocking 2020 dealing with the fallout from its promotion of Boe Pahari to CEO of AMP Capital. 

After details of serious sexual harassment allegations against Pahari became public, the company came under pressure from shareholders to reverse his plum appointment.

An investor campaign eventually forced two directors to fall on their sword and Pahari was returned to his old position.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

More reading

Motley Fool contributor Tony Yoo owns shares of IOOF Holdings Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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