Day: October 31, 2021

Judo Bank (ASX:JDO) hits the ASX, here’s how it differs from the big four

CBA share price money laundering asx bank shares represented by large buidling with the word 'bank' on it

The first bank to list on the ASX in 30 years has successfully made its journey to the milestone moment today. Judo Bank, also known as Judo Capital Holdings Ltd (ASX: JDO), has cemented itself in history on Monday as the small and medium-sized enterprise (SME) business bank made its debut in the public markets.

Around midday, shares in the freshest bank on the ASX are fetching a $2.16 price tag, up 2.86%. Miraculously, in the space of 5 years, Judo Bank has gone from a PowerPoint presentation to a more than $2.3 billion company in its current state.

Let’s put Judo under the microscope and get a sense of where it comes from and how it is different from the big four it hopes to challenge.

Judo Bank’s path to the ASX

Since its inception in October 2016, Judo Bank has been on a mission to serve SMEs and be the most trusted SME business bank in Australia. Those ambitions have been shared among an array of key people within the company, not the least of which include co-founders Joseph Healy and David Horney, among other former National Australia Bank Ltd. (ASX: NAB) executives.

Judo quickly gained its full banking licence in April 2019, less than three years after setting the wheels into motion. From there, the pace of growth has been exceptional, with the bank catering to SMEs that have been unable to secure lending through the traditional providers.

In turn, the loan book of Judo has flourished, surpassing $4.15 billion of aggregate funding to the SME sector as of 30 September 2021. The business bank experienced a 97% increase in its lending book during FY21 alone. Having grown up from its bootstrapping days, the management of Judo Bank felt it was time for it to join the big leagues on the ASX.

Getting set for the ASX involved Judo raising $657 million through its initial public offering (IPO). The raising attracted interest from a range of institutional and retail investors at an offer price of $2.10 per share. Incredibly, this implied a valuation of $2.3 billion after achieving ‘unicorn’ status only 18 months earlier.

As we now know, the $657 million capital raising was successful, along with Judo Bank’s ASX debut today.

How does is it different to the big four?

Judo Bank and its management pride themselves on doing banking “as it should be”, in the words of CEO Joseph Healy. This is a little ambiguous so let’s elaborate on what that means exactly.

The big bank contender has its sights set on the SME market. A place where management believes the big banks have neglected, with cookie-cutter financing and a high barrier to credit for many businesses, unless backed by some form of real estate as security.

Instead, the newest banking kid on the block wants to take a business-first approach. Essentially, dealing directly with SME customers with dedicated relationship managers to understand the business. By doing this, Judo can offer tailored financial solutions for its customers.

Since day one, Judo Bank’s purpose has been clear, to be Australia’s most trusted SME business bank by bringing back the craft of SME relationship banking.

Judo Bank Co-founder and CEO, Joseph Healy

Finally, the newly ASX-listed Judo Bank boasts a ‘legacy-free’ business model. Instead, opting for cloud-based technology to enable its relationship-centric lending model.

The post Judo Bank (ASX:JDO) hits the ASX, here’s how it differs from the big four appeared first on The Motley Fool Australia.

Should you invest $1,000 in Judo Bank right now?

Before you consider Judo Bank, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Judo Bank wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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Argosy (ASX:AGY) share price edges higher on Rincon update

a miner wearing a hard hat smiles as he stands in front of heavy earth moving equipment on a barren mine site.

The Argosy Minerals Limited (ASX: AGY) share price is pushing higher on Monday. This comes after the company announced an operational update on construction works at the Rincon Lithium Project.

Argosy holds a 77.5% interest in the Rincon project, located in Salta Province, Argentina. The mine is situated within the ‘lithium triangle’ – the world’s dominant lithium production source.

During late afternoon trade, the lithium miner’s shares are up 1.72% to 29.5 cents. This means its shares have now risen more than 40% in the past month alone.

How is Argosy tracking at Rincon?

Investors are buying up Argosy shares following the company snapshot of its progress at the Rincon Lithium Project.

According to its update, Argosy stated that around 45% of the total works have now been completed to bring the Rincon Lithium Project online. The development of the modular 2,000tpa (tonnes per annum) of lithium carbonate production plant remains on schedule and on budget.

The company is aiming to achieve the first commercial production of lithium carbonate product from mid-2022.

Major construction works such as building the process plant, equipment and associated installations, and expansion of the brine system have all progressed. As such, Argosy provided a summary of the current progress:

  • 99% of earthworks/land movements completed;
  • 86% of site works completed (site camp/accommodation, laboratory, office, and other works);
  • 73% of the brine system completed (pumping station and plant settling ponds);
  • 32% of the process plant completed (plant equipment acquisition and plant warehouse);
  • 33% of utilities and associated services (vapour system, communication system, and ancillary services) completed

Argosy stated that the construction phase is scheduled to be finished in April 2022. Other stages of the project, such as commissioning works, production test-works and ramp-up, are expected to follow.

What did the head of Argosy say?

Argosy managing director Jerko Zuvela touched on the update, saying:

The company’s Puna operations team continue making significant progress on construction and development works, toward commencing 2,000tpa lithium carbonate production operations at our Rincon Project. With lithium market sentiment and lithium carbonate prices maintaining strength, we are excited as we escalate works in transforming Argosy into a battery quality lithium carbonate producer and cashflow generator, and then to further progress the 10,000tpa project development expansion.

Argosy share price review

Since the beginning of the year, Argosy shares have zipped higher, recording gains of almost 270%. The company’s share price reached a 52-week high of 30.5 cents last week and could stretch further.

Argosy presides a market capitalisation of roughly $368.83 million with approximately 1.25 billion shares outstanding.

The post Argosy (ASX:AGY) share price edges higher on Rincon update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Argosy right now?

Before you consider Argosy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Argosy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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Advanced Human Imaging (ASX:AHI) share price sinks on US listing update

falling healthcare asx share price represented by doctor grimacing at x-ray

The Advanced Human Imaging Ltd (ASX: AHI) share price is in negative territory during early afternoon trade. This comes after the company announced it has released a corporate presentation to raise money for its proposed listing on the tech-focused United States Nasdaq exchange.

At the time of writing, the human scanning technology provider’s shares are down 10.71% trading at $1.00.

ASX company eyes US entry

In today’s statement, Advanced Human Imaging advised it was gathering support for its US-based initial public offering (IPO).

The company received conditional approval from the Nasdaq to list its American depositary shares (ADS). However, it is not known yet how many shares in total will represent the number of ordinary shares already listed.

Based on a price range of US$7.00 to US$9.00, the company is looking to offer 1 ADS for every 9 ordinary Advanced Human Imaging shares. This is subject to market conditions and may change, including the size of the offer. The company is hoping to raise US$15 million from investors.

Maxim Group LLC has been appointed as the sole book-running manager, and will oversee the listing.

Advanced Human Imaging submitted an updated public filing the F-1 form to the Securities and Exchange Commission (SEC). The F-1 form is the registration required for foreign companies wanting to be listed on a United States stock exchange.

About the Advanced Human Imaging share price

The Advanced Human Imaging share price has fallen almost 20% in 2021 so far. When zooming out to the past 12 months, its shares have flatlined, down 2% for the period.

It’s a stark contrast to when the company’s shares were trading above the $2 mark during early March 2021.

Advanced Human Imaging has a market capitalisation of roughly $136.92 million, with approximately 136.92 million shares on issue.

The post Advanced Human Imaging (ASX:AHI) share price sinks on US listing update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Advanced Human Imaging right now?

Before you consider Advanced Human Imaging, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Advanced Human Imaging wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Advanced Human Imaging, ResMed, Western Areas, and Westpac are falling

share price dropping

The S&P/ASX 200 Index (ASX: XJO) has had a strong start the week. In afternoon trade, the benchmark index is up 0.55% to 7,363.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Advanced Human Imaging Ltd (ASX: AHI)

The Advanced Human Imaging share price has tumbled 10% to $1.00. This morning the software company announced plans to raise US$15 million. The proceeds will be use research and development, business development, and marketing. The remainder of the proceeds will be used for general corporate purposes. This could include investing in or acquiring synergistic companies that are complementary to its technologies and working capital.

ResMed Inc. (ASX: RMD)

The ResMed share price is down 5% to $35.27. This decline appears to have been driven by a lukewarm response from brokers to last week’s quarterly update. This morning Macquarie retained its neutral rating and lifted its price target ever so slightly to $38.00. While it was pleased with its performance during the quarter, it feels its shares are close to full value now.

Western Areas Ltd (ASX: WSA)

The Western Areas share price is down almost 3% to $3.07. This morning the team at Citi reduced their FY 2022 earnings estimates for this nickel producer following its first quarter update. The broker has, however, held firm with its neutral rating and $3.40 price target.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down 6.5% to $24.01 following the release of its full year results. Although the banking giant doubled its cash earnings in FY 2021, this was still a touch short of expectations. In addition, a softening net interest margin and smaller than expected share buyback appear to be weighing on its shares. In respect to the latter, Australia’s oldest bank announced a $3.5 billion off-market share buyback. A note out of Morgans reveals that its analysts were forecasting a $5 billion buyback

The post Why Advanced Human Imaging, ResMed, Western Areas, and Westpac are falling appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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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