Category: Stock Market

Key points

• The Irongate share price has jumped today after another takeover offer
• Charter Hall and PGGM are interested in buying the Irongate business
• 360 Capital may end up buying some of Irongate’s assets

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The Irongate Group (ASX: IAP) share price has stormed higher by 17% after receiving another takeover offer, this time from Charter Hall Group (ASX: CHC).

The last takeover approach by 360 Capital Group Ltd (ASX: TGP) was rejected.

Charter Hall’s bid for Irongate

In today’s announcement, it was revealed that Charter Hall’s managed partnership has lobbed a non-binding indicative proposal.

The bid is to buy all of the shares for an Irongate share price of $1.90 cash per stapled security. Under the terms of this bid, Irongate investors will be entitled to retain a distribution for the period ending 31 March 2022 of up to 4.67 cents per stapled security.

Charter Hall notes that this offer is a 21% premium to the Irongate last closing price of $1.57 per security on 28 January 2022.

The partnership between Charter Hall and the Dutch pension fund PGGM expects to fund this proposal from existing financial resources, including existing cash and new debt facilities. Charter Hall and PGGM have received approvals from their relevant board and investment committees to pursue the transaction.

Charter Hall said that it has spent considerable time and resources reviewing Irongate’s portfolio from public sources in order to be in a position to put forward this proposal. PGGM and Charter Hall are “highly motivated” and able to complete due diligence and proceed to a formal offer in an “expeditious” manner.

How does 360 Capital factor into this?

Today’s indicative proposal includes a memorandum of understanding with Irongate’s largest securityholder, 360 Capital.

The memorandum of understanding includes a call option over 360 Capital’s 19.9% securityholding of Irongate.

The memorandum also includes standstill and exclusivity provisions in favour of the partnership and describes a proposal where 360 Capital will acquire certain assets within Irongate’s portfolio, Irongate’s funds management business and its co-investment stake in the ITAP Fund if the partnership is successful at acquiring Irongate.

However, Charter Hall’s bid is not conditional on 360 Capital completing the acquisitions.

The first response

The Irongate board is considering this new indicative proposal with the assistance of its advisors, Macquarie, JP Morgan, King & Wood and Cliffe Dekker Hofmeyr.

However, it was noted that the indicative proposal has a number of conditions including completing satisfactory due diligence, final approval of the partnership’s boards and investment committees, regulatory approvals, unanimous recommendation by the Irongate board and so on.

Irongate share price snapshot

Over the last six months, Irongate shares are up around 25%.

The post Irongate (ASX:IAP) share price rallies 17% on Charter Hall takeover proposal appeared first on The Motley Fool Australia.

More reading

• Irongate (ASX:IAP) share price slides as takeover rejected again

Motley Fool contributor Tristan Harrison 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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Key points

• Australian Ethical Investment is a popular fund manager and super provider
• The company has seen demand for its ethical investments skyrocket in recent years
• Is this company about to expand into offering ETFs?

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The Australian Ethical Investment Limited (ASX: AEF) share price is enjoying a very successful day of trading so far this Monday. At the time of writing, Australian Ethical shares are up a healthy 4.15% at $9.29. This ethically-minded fund manager has suffered a steep drop over the past couple of months. It has fallen from more than $15.08 a share back in mid-November to $8.70 today (a staggering 42.3% descent). Even so, this company is still up a pleasing 34% over the past year. As well as a very impressive 943% over the past five years.

So today’s big share price move comes amid reports that Australian Ethical might be broadening its horizons by launching an inaugural exchange-traded fund (ETF) product. According to a report in the Australian Financial Review (AFR) today, Australian Ethical is poised to pull the trigger on an ASX listing for its high conviction fund.

New Australian Ethical ETF to hit the ASX?

Up until now, Australian Ethical was a company that offered ethically-driven investment strategies across managed funds, superannuation and pensions. The company offers a range of nine managed funds. These cover everything from Australian and international shares to fixed-interest and income-focused investments.

The company’s high conviction fund was only launched last October, and is currently available only to wholesale (extremely wealthy) investors. However, this fund is reportedly the one getting the ETF treatment. According to the AFR report, Australian Ethical will be launching an ETF version of the high conviction fund tomorrow. The fund will trade under the ticker code ‘AEAE’ and will be available on the Chi-X exchange. This will be the first ETF launched by Australian Ethical.

The high conviction fund is a relatively concentrated managed fund that only holds between 20 and 35 shares. These are predominantly taken from the S&P/ASX 300 Index (ASX: XKO). According to the fund’s latest update for December, its top five holdings were Bank of Queensland Limited (ASX: BOQ), Coles Group Ltd (ASX: COL), Suncorp Group Ltd (ASX: SUN), Westpac Banking Corp (ASX: WBC) and Telstra Corporation Ltd (ASX: TLS).

Between its October 2021 inception and 31 December, the high conviction fund returned -1.8%. That fares poorly against its benchmark, which delivered 2.2%.

At the current Australian Ethical share price, this company has a market capitalisation of $1.04 billion. It also has a price-to-earnings (P/E) ratio of 93.88 and a trailing dividend yield of 0.75%.

The post Could Australian Ethical (ASX:AEF) be about to launch a new ASX ETF? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and Westpac Banking Corporation. 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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Key points

• The Damstra share price is up nearly 13%
• The comany’s quarterly revenue increased 16% in Q2 of FY22
• It achieved customer wins in Australia and New Zealand

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The Damstra Holdings Ltd (ASX: DTC) share price is on the rise today on the back of the company’s quarterly results.

Damstra provides software-as-a-service solutions to industries around the globe. At the time of writing, the company’s shares are swapping hands at 31 cents, up 12.73%.

Let’s take a look at what the company’s Q2 FY22 results revealed.

Damstra share price in the green amid results

Highlights of the company’s unaudited results include:

• Quarterly revenue increased 16% on the previous quarter to 7.2 million
• Cash receipts of $7 million quarterly
• Operating cash outflows $7.3 million, down 22% from $9.4 million in the first quarter of FY22
• Half-yearly revenue for FY22 up 16% on the prior corresponding period (PCP)
• Revenue guidance of $30-$34 million for FY22 confirmed
• Annual recurring revenue up 15% on PCP to $27.8 million

What else happened in the quarter?

Damstra attributed its improved quarterly revenue to acquiring new clients and achieving customer wins in Australia and New Zealand.

The company said another positive was its partnership with TechnologyOne. That business segment has now grown to 18 clients and Damstra is hoping to expand this partnership into the UK market.

Damstra acquired 30 new clients in total for the quarter with a total customer base of 73. Of these client contracts, none of the top 10 is due for renewal in FY22.

Damstra is also rolling out a work permit software solution to a global commercial real estate services company.

The company completed a $20 million capital raise in December to support its sales and investment internationally.

Management comment

Commenting on the results, Damstra chief executive officer Christian Damstra said:

This improved performance was due to increased activity and client wins in ANZ, and we believe in this quarter some of our international opportunities will also eventuate.

We have successfully completed our capital raise in December to strengthen our balance sheet and have sufficient capital to return to positive operating cash flows, whilst continuing to grow internationally, particularly in North America.

We have seen an increase in ANZ activity as we continue to make good progress with a number of international client opportunities, and we were pleased to provide solutions to many of our clients as they managed tracking and monitoring through the ongoing disruption from COVID-19.

What’s next for the company?

Damstra also revealed its revenue for the third quarter to date is higher than revenue at the same point in Q2.

The company plans to continue to reduce its operating cash outflows while increasing revenue. Damstra’s announcement claimed its Australian operations were a stand-out performer, despite the company not breaking down the results on location.

Damstra is also in final contract discussions with a global mining client in North America. It’s expecting a decision from this client before the end of March.

Share price recap

The Damstra Holdings share price has dropped almost 9% since the start of 2022 and more than 76% over the past 12 months.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5.54% in the past year.

The company has a market capitalisation of about $80 million based on its current share price.

The post Here’s why the Damstra (ASX:DTC) share price is surging 13% today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Damstra Holdings Ltd. The Motley Fool Australia owns and has recommended Damstra Holdings Ltd. 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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Investors in some of the biggest ASX gold shares have been nursing some hefty losses of late.

While the S&P/ASX 200 Index (ASX: XJO) has dropped 8.1% so far in 2022, leading gold miner Newcrest Mining Ltd (ASX: NCM) is down 12.3%.

Meanwhile, rival ASX gold share Northern Star Resources Ltd (ASX: NST) has dropped 11.7% while Evolution Mining Ltd (ASX: EVN) is down 15% since the opening bell on 4 January.

That’s the recent price action.

And it comes as the World Gold Council reports that global gold demand hit 2-year highs in 2021.

Global gold demand ramps back up

According to the World Gold Council’s latest Gold Demand Trends Report, gold demand in 2021 ramped back up following a big hit from the pandemic in 2020.

Annual demand for gold (excluding OTC markets) came in at 4,021 tonnes.

The fourth quarter was particularly strong with demand reaching 1,147 tonnes. That’s a 50% year-on-year increase and its highest quarterly level since the second quarter of 2019.

An increase in safe haven demand from spooked retail investors saw gold bar and coin demand increase by 31% to 1,180 tonnes. That’s the highest level reported since 2013.

Gold demand from the jewellery sector of 2,124 tonnes was back at 2019’s pre-COVID levels.

And the world’s central banks added a combined 463 tonnes to their bullion holdings, up 82% year-on-year. According to the report, that’s the 12th year running that central banks were net purchasers of gold.

The World Gold Council said that tailwinds for gold from increasing interest rates could be offset by the continuing demand for haven assets.

Commenting on the results, Louise Street, senior analyst EMEA at the World Gold Council, said:

Gold’s performance this year truly underscored the value of its unique dual nature and the diverse demand drivers. On the investment side, the tug of war between persistent inflation and rising rates created a mixed picture for demand. Increasing rates fuelled a risk-on appetite among some investors, reflected in ETF outflows. On the other hand, a search for safe haven assets led to a rise in gold bar and coin purchases, buoyed by central bank buying.

Street expects “similar dynamics to influence gold’s performance in 2022 with demand drivers fluctuating according to the relative dominance of key economic variables”.

How have these ASX gold shares performed longer-term?

Using the ASX 200 as our benchmark, the index has gained 4.5% over the past 12 months and is up 23.8% over the past 5 years.

So how do our 3 ASX gold shares named above stack up?

The Newcrest share price is down 16.5% over the past year and down 4.2% in 5 years.

Evolution shares are down 27.6% since this time last year but have posted a strong 55.8% gain over the last 5 years.

The Northern Star share price is down 35.9% over the full year but up a very healthy 108.4% in 5 years.

There you have it. Longer-term 2 out of 3 of these ASX gold shares have trounced the index’s returns.

The post Own ASX gold shares? World Gold Council reports big boost in demand appeared first on The Motley Fool Australia.

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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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Key points

• Next Science shares shoot higher on new distribution deal
• Expanded presence of Xperience in United States market
• Zimmer Biomet withdraws complaint filed against Next Science last year

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The Next Science Ltd (ASX: NXS) share price is on the move at midday on Monday. This comes after the company announced a major positive announcement to the ASX today.

At the time of writing, the medical technology company’s shares are fetching $1.17, up 11.43%.

What did Next Science announce?

Investors have been buying Next Science shares after the company revealed it has further developed its relationship with Zimmer Biomet.

According to its release, Next Science advised it has signed a United States distribution agreement with Zimmer for Xperience. 

Under the deal, Zimmer will sell a white-label version of Xperience into the United States market under its own brand. The product will launch sometime in the second half of 2022. The news appears to have sent Next Science shares rocketing today.

Next Science will receive a portion of revenues from Zimmer’s white label Xperience product. Although no details were provided in the release as to exactly how much Next Science will collect.

The agreement will run for five years, but can be extended for a further five years.

Management noted that the contract confirms Next Science’s Xperience intellectual property ownership and rights.

In June 2021, Zimmer filed a complaint in reference to Next Science’s commercialisation and distribution rights to its Xperience No Rinse Antimicrobial Solution. This is now resolved, with Zimmer withdrawing the complaint.

In addition, both parties have agreed to a refreshed distribution arrangement for Bactisure in the United States market. The revised term has been extended until the end of 2026, with a renewal option for another five years.

Next Science managing director Judith Mitchell said:

The new arrangements with Zimmer provide a paradigm shift in the representation of Xperience to the US orthopaedic market. The Zimmer joint replacement sales team is a well credentialled market leading commercial force in the orthopaedic market and we look forward to the positive impact it can have on the US market for the white labelled version of our Xperience product, aligning with Next Science’s overall mission of healing patients and saving lives.

About the Next Science share price

Next Science shares have travelled sideways over the last 12 months, registering a loss of 4.88%.

It’s worth noting that the company’s share price hit a fresh 52-week low of 99 cents before rebounding last week.

Based on valuation grounds, Next Science presides a market capitalisation of roughly $231.63 million, with approximately 197.97 million shares outstanding.

The post Here’s why the Next Science (ASX:NXS) share price is rocketing 11% today appeared first on The Motley Fool Australia.

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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. owns and has recommended Next Science 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest rose to 15.2%. Short sellers have been increasing their positions amid concerns over its valuation and the impact that the Omicron variant could have on the travel market recovery.
• Kogan.com Ltd (ASX: KGN) has seen its short interest ease to 11.1%. Short sellers will have been celebrating last week after the ecommerce company’s shares tumbled following the release of another disappointing half year update.
• Zip Co Ltd (ASX: Z1P) has seen its short interest rise to 10.8%. Short sellers appear concerned by increasing competition in the buy now pay later market and rising costs to support its growth.
• BHP Group Ltd (ASX: BHP) has short interest of 10.1%, which is up week on week once again. Traders are shorting BHP’s shares in order to profit from the unwinding of its dual listing, which will take effect later today.
• Mesoblast limited (ASX: MSB) has short interest of 9.6%, which is up week on week again. This biotech company’s shares have come under pressure over the last 12 months due poor trial results and its cash burn. The loss of a potential US$1.25 billion deal with Novartis hasn’t helped the latter.
• Webjet Limited (ASX: WEB) has short interest of 9.6%, which is up week on week. As with Flight Centre, this appears to have been driven by concerns about the travel market recovery.
• Redbubble Ltd (ASX: RBL) has short interest of 9.2%, which is down week on week. Short sellers may have been closing positions to lock in their gains after this ecommerce company’s shares were sold off following a disappointing trading update.
• Polynovo Ltd (ASX: PNV) has seen its short interest rise to 9.2%. Although this medical device company’s performance has been improving, short sellers don’t appear to believe it will last.
• Appen Ltd (ASX: APX) has seen its short interest rise to 7.7%. Short sellers aren’t giving up on this artificial intelligence data services provider despite it being tipped to surprise to the upside with its full year results next month.
• Nanosonics Ltd (ASX: NAN) has 7.2% of its shares held short once again. Short sellers may be targeting the medical device company due to the lofty multiples that its shares trade on.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Kogan.com ltd, Nanosonics Limited, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd, Kogan.com ltd, and Nanosonics Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. 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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Key points

• The IGO share price is more than 3% lower on Monday
• Revenue is down compared to the corresponding half year
• Profit is up

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The IGO Ltd (ASX: IGO) share price is down 3.04% in lunchtime trade following the release of the company’s half year results for the 6 months through to 31 December.

The mining and exploration company’s shares closed on Friday at $11.85 per share and are currently trading for $11.49 per share.

What did IGO report?

• Sales revenue of $377.2 million, down 18% from the corresponding half year
• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $225.9 million, down 7% half-on-half
• Net profit after tax (NPAT) increased 67% from 1H 2021 to $90.7 million
• Cash and net cash holdings of $569.8 million, down 52% from the 1H 2021

What else happened during the half year?

IGO reported that sales revenues were impacted by a decrease in nickel and copper sales. However, this was offset by higher nickel prices.

The IGO share price was supported during the past quarter by a 36% lift in NPAT and 19% boost to EBITDA compared to the first quarter of 2021. The company said the quarterly performance was lifted from a higher contribution from its Nova operations along with a 56% improvement in profitability from its Lithium Joint Venture.

Overall, the half year results were lower as there was no contribution from the divested Tropicana project.

The company paid $45 million during the reporting period to Creasy Group as consideration for its Silver Knight acquisition.

IGO declared a 5.0 cent per share (cps) interim dividend, fully franked. The record date is 4 March with a payment date of 18 March.

What did management say

IGO also provided its annual resource and reserve update this morning. There were significant changes, with the company having divested its Tropicana project while forming the Lithium Joint Venture.

Among other highlights, it reported a 52% increase for its Greenbushes Mineral Resource and a 20% increase for its Ore Reserve with the inclusion of the Kapanga Deposit.

Commenting the the update, IGO’s CEO Peter Bradford said:

Our portfolio has significantly changed during the year as we continued to execute our strategy of being a globally relevant supplier of products that are critical to clean energy.

The key changes are associated with the divestment of IGO’s 30% interest in the Tropicana Gold Mine and the formation of a new lithium Joint Venture (JV) with Tianqi over its Australian lithium assets. This JV included a 24.99% indirect interest in the Talison Greenbushes Operation delivering exposure to a truly world-class asset with low cost, scale and longevity.

What’s next?

Looking ahead, IGO expects the Mineral Resource and Ore Reserves will support continued growth projects at Greenbushes.

According to Bradford:

Greenbushes is the premier hard-rock lithium mine globally, and the expanded Mineral Resource and Ore Reserve supports the continued investment to expand the production capacity to meet the rapidly increasing demand for lithium as the world transitions to clean energy.

Bradford also pointed to Nova’s strong production performance and said, for the year ahead, “We continue to invest in exploration in the near-mine environment with several highly promising exploration targets.”

IGO share price snapshot

The IGO share price has gained 81% over the past 12 months. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 4% over that same time.

So far in 2022, IGO shares are down just under 1%.

The post IGO (ASX:IGO) share price lower as revenue slides 18% appeared first on The Motley Fool Australia.

More reading

• Leading fund manager says these blue-chip ASX shares are buys right now
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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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Key points

• JP Morgan downgraded NIB to underweight today
• The broker slashed its price target by 12% to $6.10
• The firm is cautious on the Australian health insurance sector over the medium to long-term
• Analysts at the firm like Medibank as a better alternative
• In the last 12 months the NIB share price has climbed more than 11%

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Shares in private health insurer NIB Holdings Ltd (ASX: NHF) are plunging more than 7% from the open today and now trade at $6.16 apiece.

Investors are selling the NIB share price today following a broker downgrade from investment bank JP Morgan.

In a note to clients, the broker deconstructs why NIB has fallen out of the limelight, and why it urges its clients to sell the insurer. Let’s take a look.

Why’s the NIB share price plunging today?

In the absence of any market-sensitive information from the company’s camp today, it could be that JP Morgan slashed its price target for NIB by 12% to $6.10.

In doing so, it also assigned an underweight recommendation on the stock, downgrading the insurer from a previous neutral rating.

The broker reckons that insures such as NIB and Medibank Private Ltd (ASX: MPL) have benefitted tremendously from a slowdown in COVID-19 health claims in the short term.

However, it also notes that NIB has made promises that policyholders will see benefits returned to them, which poses a risk to long-term profits.

The broker isn’t so rosy on the outlook of the Australian health insurance sector over the medium to long-term, noting widening capital requirements, lower rate increases and headwinds to profits in some business lines.

Specifically, the investment bank alludes to NIB’s Australian Residents Health Insurance unit that appears to be struggling based on the numbers.

JP Morgan reckons that NIB will overreach its margin targets in this segment once again, especially due to its stance on retaining COVID-19 benefits for shareholders.

Analysts at the firm like Medibank as a better alternative, although the team also downgraded its view on NIB’s rival to underweight as well today.

Shares have faltered after the broker released its scathing cross-examination on NIB, and are now trading at their lowest level in almost 6 months.

As seen on the chart below, both shares have tracked each other fairly closely over the last 12 months, with the exception of NIB’s breakout-correction phase in August last year.

Hence, it appears we might be at a crossroads between the pair and the next course of direction in their share prices.

NIB share price snapshot

In the last 12 months, the NIB share price has climbed more than 11%. Since January 1 this year however, it has slipped well into the red and is 12% down.

Not only that, but in the last week of trading, shares have fallen another 6% amid a market-wide selloff that’s been in situ since December last year.

The post Why is the NIB (ASX:NHF) share price sliding 7% today? appeared first on The Motley Fool Australia.

More reading

• How do Medibank (ASX:MPL) dividends compare to NIB?
• Here are Scott Phillips’ top 5 ASX shares for 2022. Is it time to buy?
• Own NIB (ASX:NHF) shares? Here are the key dates for your investor diary in 2022

Motley Fool contributor Zach Bristow 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 recommended NIB Holdings 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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Key points

• The Bluebet share price is struggling today
• Shares are on the way down despite a record quarter in turnover for the company
• Bluebet also exceeded all its prospectus forecasts this quarter
• The company says it is well-funded to fuel its growth vision into the US market.

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Shares in online wagering business Bluebet Holdings Ltd (ASX: BBT) are struggling today, down 5.1% to 93 cents each at the time of writing.

It seems investors expected more from the company’s earnings update for the quarter ending 31 December 2021 released today.

Bluebet shares slide despite ‘record turnover’ in Q2 FY22

The company released several investment highlights from the quarter, including:

• Exceeding its calendar year (CY) 21 and 1H FY22 prospectus forecasts for all key metrics
• Record turnover in Q2 FY22 of $138.6 million, up 54.8% year on year
• Melbourne Cup week up 62.2% year on year, delivering new records for weekly turnover
• Q2 FY22 net win of $13.8 million, up 51.6% from the year prior
• First time depositors (FTD) increased 86.9% for the quarter
• BlueBet announced its second market access agreement in the US

What else happened last quarter for Bluebet?

Bluebet ended the period with revenue of $138.6 million – a 55% year on year gain – and a net win of $13.8 million, up 52% from the year prior.

The company also maintained a net win margin of 10% through, it says, a “disciplined approach to managing promotions”. This has resulted in a net win margin of around 11% for the 6 months year to date.

Bluebet also exceeded its CY21 and 1H FY22 Prospectus forecasts across all key metrics, according to the company’s announcement. These include turnover of $444.6 million, a bet count of 8.8 million, and active customers of 45,087 (up 13.2%) to name a few.

As of 31 December 2021, Bluebet had $55.4 million in cash on the balance sheet, including customer deposits of $3 million.

Aside from that, the company also announced that its wholly-owned subsidiary Bluebet Colorado LLC signed an agreement with The Wild Card Saloon & Casino, a casino operator based in Colorado, USA.

The agreement has a term of 10 years and enables Bluebet to conduct business-to-consumer (B2C) sportsbook operations online in Colorado, pending regulatory approval.

What’s next for Bluebet?

The company says that it is well funded to work towards its growth vision and has sufficient cash runway to cover its expansion moves.

It also prepared a prospectus last year in relation to an offer of 70.2 million shares at an issue price of $1.14 per share to raise another $80 million.

The company says it has deployed these funds largely in line with expectations to the designated areas, without any cost blowouts.

It also notes that first bets are expected with its Colorado deal in Q1 FY23, whereas it expects first bets from its Iowa outfit in late March this year.

The company didn’t provide any specific earnings guidance in its quarterly update today.

Bluebet share price snapshot

The Bluebet share price is trending down in 2022 having lost around 37% since January 1. This came after sliding 20% in the last week alone.

Zooming out, the company’s shares are lagging benchmarks and are down more than 18% in the last 12 months of trading.

The post Here’s why the Bluebet (ASX:BBT) share price is tanking 5% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 recommended BlueBet Holdings Ltd. 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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Key points

• The Firebrick Pharma share price is up an additional 22% today
• Shares in the company reached a new all-time high of 75 cents a piece
• Investors take a chance on the pre-revenue nasal spray developer

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The Firebrick Pharma Limited (ASX: FRE) share price is figuratively on fire once again on Monday. Continuing its green streak following its successful initial public offering (IPO) and listing on Friday, Firebrick is soaring again on its second day of trading.

At the time of writing, shares in the nasal spray developer are up 22.6% to 65 cents per share. However, earlier in trade the company had reached a new all-time high of 75 cents per share.

The further surge in the newly listed pharmaceutical company’s valuation now prices it 3.25 times higher than its original offer price.

What’s going on with the Firebrick share price today?

The excitement surrounding Firebrick’s debut on the ASX has extended into Monday following the weekend. However, there is no new information today that we didn’t already know on Friday. Instead, it appears the market is still grappling with what fair value is for the company’s shares.

We covered Firebrick’s IPO previously, but for a quick refresher — the company has developed its patented Nasodine nasal spray product. This medicine is targeted to treat viruses that cause the common cold via the nose. Currently, the company’s product is in clinical trials, with plans to have it approved by regulators in the future.

Additionally, Firebrick’s interest in testing the nasal spray against COVID-19 likely has garnered added attention from investors. This will be conducted in a phase 2 clinical trial this year. Fortunately, the company now has $7 million in its piggy bank to fund these trials following its IPO.

Nonetheless, the volatility in the Firebrick share price is likely partly attributable to the pre-revenue nature of the business.

According to the prospectus, the company’s income for the year ended 30 June 2021 totalled ~$423,000. This was predominantly from a research and development tax rebate. Meanwhile, expenses rounded out at around $2.86 million for the period. As a result, Firebrick burnt $2.44 million in FY21.

Based on the current Firebrick share price, the pharmaceutical company is valued at $69 million.

The post On fire! Firebrick (ASX:FRE) share price surges another 22% on second day of trade appeared first on The Motley Fool Australia.

More reading

• Firebrick Pharma (ASX:FRE) share price launches 165% following ASX IPO
• Firebrick Pharma (ASX:FRE) is floating on the ASX today. Here’s what you need to know

Motley Fool contributor Mitchell Lawler 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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