Stock Pick

  • Novatti share price jumps 11% after announcing partnership with Alipay

    Woman holding smartphone with digital payment capability

    The Novatti Group Ltd (ASX: NOV) share price had an impressive run on the market today, finishing 11.11% higher after rallying as much as 20% in early morning trade.

    Novatti is in the business of digital banking and payments. Through technology, the company aims to position its customers to thrive in the growing cashless economy.

    Novatti has a number of transaction processing services under its banner. This includes ChinaPayments (a bill payment service), Flexepin (an open-loop cash voucher service), and Flexewallet (for remittance and compliance services).

    Overall, the company has a wide range of software solutions in the banking and payments space, including consumer digital wallets, mobile money, and voucher management systems.

    Why did the Novatti share price jump today?

    Well, this morning, Novatti announced it has partnered with Alipay to enable in-app BPAY bill payments via its ChinaPayments platform.

    More specifically, the China-focused, cross-border payments platform, ChinaPayments, has been added directly to the main page of Alipay’s app. As a result, Alipay users will be able to directly pay their Australian bills within the app.

    For some background, Novatti launched ChinaPayments in early 2018 as a first-to-market platform enabling Chinese residents to pay Australian BPAY bills using Chinese currency. So, for example, a Chinese student might use the platform to pay for things like education fees, utilities, rent, and phone bills.

    Novatti believes the platform is an innovative solution that enables Chinese residents to pay their Australian bills easily, while also improving the cashflow of Australian billers through on-time payment.

    According to Novatti, more than 500 BPAY billers have received payments through the ChinaPayments platform over the past year.

    Commenting on its partnership with the Chinese payments giant, Novatti’s managing director, Peter Cook, said:

    “Novatti has enjoyed a constructive partnership with Alipay, a global major third-party mobile and online payments platform. Our close co-operation has led to the integration of ChinaPayments into the Alipay platform and validates our strategy of working with tier one providers.”

    Mr Cook closed out his comments by stating that the integration into Alipay has led to an immediate increase in consumer enquiries, social media interaction and ultimately, more transactions on the ChinaPayments platform.

    The Novatti share price closed at 25 cents today, taking the company’s market capitalisation to around $46 million.

    If you’d rather invest in larger and more liquid companies, check out the highly-recommended ASX growth shares in the report below.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Novatti share price jumps 11% after announcing partnership with Alipay appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3cVRwnf

  • Nio Sinks After-Hours On Proposed 60M ADS Offering

    Nio Sinks After-Hours On Proposed 60M ADS OfferingChina’s Nio Inc (NIO) has announced an offering of 60 million American depositary shares (ADSs), each representing one Class A ordinary share of the company. Shares fell 5% in Tuesday’s after-market trading.The electric-vehicle maker also intends to grant the underwriters in the ADS Offering a 30-day option to purchase up to an additional 9 million ADSs.Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and China International Capital Corporation Hong Kong Securities Limited are acting as the joint book-running managers for the ADS Offering.The ADSs will be offered under the company’s shelf registration statement which became effective on June 9, 2020. A preliminary prospectus supplement related to the proposed ADS offering has also been filed with the SEC.According to the press release, NIO plans to use the net proceeds from the ADS Offering mainly to fund its cash investments in NIO China, as well as other working capital needs.“We expect NIO China will use the cash investments for research and development of products, services and technology, development of our manufacturing facilities and roll-out of our supply chain, operation and development of our sales and service network and general business support purpose” the company said.NIO stock has exploded 66% on a year-to-date basis, with both Goldman Sachs and Merrill Lynch recently upgrading NIO from hold to buy. (See Nio stock analysis on TipRanks). This gives the stock a Moderate Buy consensus.Goldman Sachs’ Fei Fang upgrade came with a $6.40 price target (4% downside potential). “We believe ES6 and ES8 volume strength has transitioned from being promotion-driven to reputation-driven,” Fang told investors, adding that never before has a domestic premium Chinese auto brand had a waiting list.He expects NIO to break even in 2022 once it can deliver 10,000 cars per month. Encouragingly, the company recently revealed that it delivered 3,436 vehicles in May 2020, representing a strong 215.5% growth year-over-year.“In May, we achieved record-high monthly deliveries in our history” cheered William Bin Li, founder and CEO of NIO. He stated that the company “will further increase our production capacity and expand our sales network to support our future growth.”Related News: Tesla CEO Elon Musk Sees Model Y Facing Production Challenges Grubhub Shares Lifted On Report Of European Acquirers Lining Up Can Tesla Provide the Million Mile EV Battery? Top Analyst Weighs In More recent articles from Smarter Analyst: * GameStop Down 7% After-Hours As Earnings Fail To Impress * Apple Seeks To Boost Sales Via Mac Trade-Ins, Payment Plans- Report * Mastercard Sees Improvement In May Switched Transactions As Lockdown Eases * Elanco Gets EC Anti-Trust Clearance For $7.6 Billion Deal To Buy Bayer Unit

    from Yahoo Finance https://ift.tt/3f88qjN

  • Latest 3 ASX buy ideas from leading brokers

    Clock showing time to buy, ASX 200 shares

    Investors should be more confident about buying the dips as our market has a tendency to recover from early losses.

    Today was no exception with the S&P/ASX 200 Index (Index:^AXJO) clawing its way back to the black.

    If you are looking for stocks to put on your watchlist, these three stocks are among the latest “buy” ideas from leading brokers.

    Riding on a cloud

    One stock worth considering is scrap metal company Sims Ltd (ASX: SMG), according to UBS.

    The broker upgraded the stock to “buy” from “neutral” today even though the stock is impacted by the lack of earnings visibility and volatile scrape prices.

    “However, at 0.8-0.9x NTA [net tangible asset] and with scrap markets expected to improve from here as the US economy reopens, the discount is too wide,” said UBS.

    “In addition, SGM’s push into cloud recycling offers the opportunity for more stable volumes and growth as cloud IT refresh cycles fall.”

    Cloud recycling is the recycling of computer servers and other IT equipment used in cloud computing. It’s related to e-recycling and Sim’s expansion into this space was triggered by the exit of a key competitor.

    UBS’s price target on Sims is $10.20 a share.

    Shining bright

    Meanwhile, JP Morgan initiated coverage on Gold Road Resources Ltd (ASX: GOR) with an “overweight” recommendation as GOR potentially offers the best returns among gold miners under the broker’s coverage.

    Gold Road’s 50% owned Gruyere project is the main reason for the broker’s enthusiasm as that is a large and long-life mine based in Western Australia.

    “These are scarce and valuable qualities in this gold-focused, and negative real yield environment,” said JP Morgan.

    “We see clear potential to add value to the current Gruyere operation by increasing production rates, extending mine life and finding more gold.”

    The broker’s price target on the stock is $1.95 a share, which implies a 30% upside.

    Positive trends

    Finally, Macquarie Group Ltd (ASX: MQG) reiterated its “outperform” call on Domino’s Pizza Enterprises Ltd. (ASX: DMP) after the fast food chain’s trading update.

    Domino’s is benefiting from the COVID-19 shutdown as demand increased from stay-at-home consumers.

    The broker also noted that the company’s supply chain isn’t impacted by the pandemic and that management is increasing their advertising spend when competitors are hunkering down.

    “Summer is normally slower in Europe given ~30% of population is abroad at any time, but this season will be unusual given many consumers will not be travelling,” said Macquarie.

    The broker’s 12-month price target on the stock is $66.10 a share.

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Latest 3 ASX buy ideas from leading brokers appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2ASuZu0

The Latest