Category: Stock Market

Thursday is proving to be a great day for the Ecograf Ltd (ASX: EGR) share price after the company announced that it’s writing up an offtake agreement.

Ecograf has entered a memorandum of understanding with South Korean multinational industrial company POSCO International. The agreement will see Ecograf selling its HFfree battery anode material products to POSCO International.

The companies intend to sign a formal offtake agreement following their understanding.

At the time of writing, the Ecograf share price is 82.5 cents, 28.91% higher than its previous close.

Let’s take a look at today’s news from the battery anode material business.

Ecograf share price surges on Thursday

Ecograf’s stock is surging higher on the back of a planned offtake agreement for the products of its upcoming Australian Battery Anode Material facility and its planned facility in Europe.

By supplying POSCO International with its HFfree battery anode material products, Ecograf will be supporting POSCO’s anode production expansion plans.

According to Ecograf, POSCO International is a key subsidiary of Korean steel maker POSCO Group.

POSCO International has an international network made up of more than 80 subsidiaries. It uses its position to establish value chains in various sectors including steel, energy, machinery parts, and infrastructure. 

On top of the offtake agreement, Ecograf and POSCO International will look for other opportunities to work together on product development, battery anode recycling, and EcoGraf’s battery anode material business’ development.

Ecograf is working to build its first battery anode materials facility in Perth. It will focus on exporting battery anode material products to Asian, European, and North American anode, lithium-ion battery, and electric vehicle markets.

Additionally, Ecograf announced it has signed a land reservation agreement for an industrial site in Sweden in August. There, it’s planning to build another battery anode facility.

Right now, the Ecograf share price is 385% higher than it was at the start of 2021.

The post Ecograf (ASX:EGR) share price launches 29% on battery material deal appeared first on The Motley Fool Australia.

More reading

• Why has the Betashares Crypto Innovators ETF (ASX:CRYP) lost 12% in 10 days?
• Why Adairs, EML, Fisher & Paykel Healthcare, and NRW are storming higher
• Talga (ASX:TLG) share price leaps 7% on EV anode facility update
• Green light: NAB (ASX:NAB) share price slips as ACCC gives nod to Citi deal
• How is the DevEx (ASX:DEV) share price climbing 42% so far this week?

Motley Fool contributor Brooke Cooper 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.

from The Motley Fool Australia https://ift.tt/3DQqQ5j

The Betashares Crypto Innovators ETF (ASX: CRYP) launched with record success on 4 November.

The exchange-traded fund (ETF) reported $8 million worth of trades within the first 15 minutes of the opening bell.

By the end of the day, CRYP had set new all-time highs for a managed investment on the ASX, finishing its first day with net buys of $39.7 million.

Within 4 trading days, the CRYP share price had gained 11%.

But over the last 10 days, things have gone the other way, with the ETF sliding 12% at the time of writing. That’s despite a 2% intraday gain today.

So, what’s going on?

Why is CRYP down 12% in 10 days?

There look to be 2 interrelated reasons for CRYP’s retracing share price.

First, the price of the world’s top two cryptocurrencies has taken a tumble.

Ten days ago, Bitcoin (CRYPTO: BTC) was trading for US$65,961 (AU$91,611). Today it’s worth US$58,163, down some 12%, according to data from CoinMarketCap.

The world’s No. 2 token by market valuation, Ethereum (CRYPTO: ETH), has also lost ground. Over 10 days Ether has dropped from US$4,725 to US$4,316, down approximately 9%.

That’s the underlying price pressure for CRYP.

What else is seeing the ETF come under pressure?

CRYP doesn’t invest directly in Bitcoin, Ethereum, or any other altcoins.

Instead, the ETF “aims to track the performance of an index (before fees and expenses) that provides exposure to global companies at the forefront of the dynamic crypto-economy”, according to BetaShares.

CRYP currently has 32 holdings. Its top 5 holdings as of this morning are:

1. Silvergate Capital Corp (12.3%)
2. Galaxy Digital Holdings Ltd (11.6%)
3. Marathon Digital Holdings Inc (10.5%)
4. Coinbase Global Inc (10.0%)
5. Microstrategy Incorporated (8.6%)

And with the exception of Silvergate, which has seen its share price gain 1% since the closing bell on 12 November, all the other shares are well down.

Galaxy’s share price is down 16% in that time; Marathon’s shares have lost 31%; Coinbase is down 9%, and the Microstrategy share price has slipped 14%.

There will be various reasons for these companies coming under pressure. But the recent losses in the big cryptos are certainly a hefty headwind. And the combination looks to be dragging on the CRYP share price.

The post Why has the Betashares Crypto Innovators ETF (ASX:CRYP) lost 12% in 10 days? appeared first on The Motley Fool Australia.

More reading

• Are there more crypto ETFs coming to the ASX in the future?
• Why was the new BetaShares Crypto Innovators ETF (ASX:CRYP) down 5% on Thursday?
• Here’s why the Betashares Crypto Innovators ETF (ASX:CRYP) share price is surging 7% today
• BetaShares Crypto Innovators ETF (ASX:CRYP) breaks opening day records…now what?
• The first crypto ETF (ASX:CRYP) has just hit the boards. Here’s what you should know

The Motley Fool Australia’s parent company The Motley Fool Holdings Inc. owns shares of and recommends Bitcoin and Ethereum. 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.

from The Motley Fool Australia https://ift.tt/31096G0

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.1% to 7,393.1 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

Adairs Ltd (ASX: ADH)

The Adairs share price is up 5.5% to $3.61. Investors have been buying this homewares retailer’s shares after it announced the acquisition of furniture retailer Focus on Furniture for $80 million. Focus has 23 stores in Australia with revenue of more than $150 million in FY 2021. The release notes that the acquisition builds out Adairs’ product offering in the key area of home furniture and increases its exposure to that market by almost three times.

EML Payments Ltd (ASX: EML)

The EML Payments share price is up almost 26% to $3.46. This follows the release of an update on its dealings with the Central Bank of Ireland. The central bank has advised that it will allow EML’s PFS Card Services Ireland business to sign new customers and launch new programs. In addition, broad-based reductions in limit controls on programs will not be imposed. This appears to have eased concerns that the business could lose its licence to operate in Europe.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price is up 3.5% to $32.00 following the release of its half year results. While the medical device company posted modest declines in operating revenue and net profit after tax, investors appear to have been expecting much worse. Especially given how it was cycling a period from a year ago when its sales were boosted materially by COVID-19 demand for respiratory devices.

NRW Holdings Limited (ASX: NWH)

The NRW share price is up 10% to $1.77 following the release of the mining services company’s annual general meeting update. At the event, management revealed that following a number of new contract wins, it is maintaining its earnings guidance with a higher degree of certainty. It is forecasting operating earnings before interest and tax of $145 million to $155 million in FY 2022. This is up from $120.6 million in FY 2021.

The post Why Adairs, EML, Fisher & Paykel Healthcare, and NRW are storming higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: EML rockets, NAB given ACCC green light
• EML (ASX:EML) share price rockets 17% on new programs green light from regulator
• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend
• Here’s why the Adairs (ASX:ADH) share price is rocketing 8% this morning
• Fisher & Paykel Healthcare (ASX:FPH) share price higher on half year results

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 shares of and has recommended ADAIRS FPO and EML Payments. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO and EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3HRpNVj

Shares in battery anode and advanced materials company Talga Group Ltd (ASX: TLG) are gaining ground today and are currently trading at 7.33% higher at $1.83.

The Talga share price is catching bids as investors respond positively to an announcement on its electric vehicle anode qualification (EVA) plant under construction in Sweden.

What did Talga announce?

Talga advised that the EVA plant is being constructed within the metals research institute, Swerim, located in Sweden. It will produce Talga’s flagship lithium-ion battery anode material, called Talnode-C, for large scale customer qualification trials.

The EVA uses “high grade purified natural graphite” sourced from Talga’s Vittangi graphite project, also in Sweden, to make the precursor material for Talnode-C.

It is understood to be the first lithium-ion battery anode production plant in Europe, according to the release.

Talga notes that on-site construction activities are now underway, whereas structural and electrical works are largely completed. Whilst international shipping delays have affected some delivery dates, Talga doesn’t expect any negative impact to its timeline.

Further batches of the precursor material will be made using graphite from a 2021-22 trial mine that completed its first phase of development in October 2021. The first batch of this “trial mined graphite feed concentrate” has been produced and stored for the plant’s commissioning.

Commenting on the plant update, Talga Managing Director Mark Thompson said:

The EVA plant is a key step in Talga’s mission to enable the world’s greenest batteries and represents real progress towards local decarbonisation strategies. We look forward to the commissioning of Europe’s first coated anode production facility and continued qualification of our Talnode® products with Li-ion battery manufacturers.

What else did Talga come out with?

The company followed up with an announcement on its Vittangi site. Talga reported it had received first assay results from a recent drilling program at the project.

Talga says that all drill-holes “successfully intersected the targeted graphite unit over approximately 100m of strike and returned significant high-grade graphite (Cg) results from near surface”.

Speaking on the assay results, Thompson said:

We are very pleased with the graphite results starting to come in from the 2021 drilling at Vittangi. The grades include some of the highest ever from the project, improving the potential to optimise the mine plan and upwardly revise ore reserves. This supports our goal of green anode production by further minimising the footprint of the project and is an exciting development in this time of rising graphite material prices. We look forward to further results from the balance of drilling and subsequent development of this strategically important resource for battery manufacturers in Europe.

The Talga share price has underperformed in the last 12 months, posting a loss of 7% in that time. Despite the troubles, it has regained course this year to date and is up 13% from January 1.

In the last month, it has come off a low of $.148 and closed as high as $2.20 on 9 November, before retracing back down to its current levels.

The post Talga (ASX:TLG) share price leaps 7% on EV anode facility update appeared first on The Motley Fool Australia.

More reading

• Talga (ASX:TLG) share price loses charge after new battery deal
• Why the Talga (ASX:TLG) share price is charging 10% higher today

The author has no positions 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.

from The Motley Fool Australia https://ift.tt/32Btezr

Shares in banking giant National Australia Bank Ltd (ASX: NAB) are in the red today, trading 0.23% lower at $28.39 at the time of writing.

NAB shares are tipsy this morning following a company announcement on its proposed acquisition of Citigroup‘s Australian consumer business.

The bank advised that the Australian Competition and Consumer Commission (ACCC) would not oppose its acquisition of Citi’s Australian consumer business after a review found the transaction would not substantially lessen competition.

Here are the details.

What’s the deal?

NAB first announced entered into a sale and purchase agreement with Citigroup Australia and proposed to buy its consumer business back in August. At the time, NAB touted the proposal as a “strategic growth ambition for its personal banking business”.

Both NAB and Citi overlap in the supply of consumer banking products and services in Australia, including credit cards, personal loans, and home loans for example.

According to the watchdog, evidence showed that the proposed acquisition was unlikely to raise competition concerns in any other areas of overlap, given Citi’s minimal market share in these markets.

The ACCC’s review also zoned in on competition in the supply of credit cards, as Citi is a substantial provider credit card services in Australia.

For instance, a focal point of the investigation was the provision of ‘white label’ credit card services. Following the acquisition, NAB will be the dominant white label credit card supplier to a number of commercial partners.

What are white label credit cards?

White label credit cards refer to card products issued by a financial institution as a partnership with a third party, usually a large company. Here’s the way it works:

• Vendors such as NAB fund and issue credit cards to consumers via “third party distributors”, called white label partners.
• The card provider “supplies unsecured credit funding, technology, human capabilities and other services to partners to enable them to market credit cards with their branding to consumers”.
• White label partners are typically responsible for marketing and customer acquisition.
• Functions like approvals are carried out by the card supplier.

What about competition?

The review also considered whether NAB’s acquisition of Citi would reduce competition in the entire credit card market, including offshoots such as rewards programs.

The ACCC concluded that NAB would still face a healthy level of competition from a range of credit card suppliers. It also noted that “NAB today is smaller in credit cards than its major bank rivals”.

As the bank reported, “the ACCC was particularly focussed on whether post-acquisition NAB might offer less favourable terms to these white label partners, such as smaller banks, with the aim of enhancing the position of NAB’s own branded credit cards”.

However, the ACCC found that NAB would be unlikely to have an incentive to act in that way after the acquisition.

ACCC chair Rod Sims concluded:

We are very concerned to ensure that mergers in the financial industry do not limit the competitive constraint provided by providers outside of the major four banks, however, in this case the ACCC did not consider there would be a substantial impact in any market.

NAB share price snapshot

In the past 12 months the NAB share price has climbed more than 17% after rallying almost 25% this year to date. In the past month, it has reversed course and is now 2.5% in the red.

Over the longer term, NAB shares have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of around 12% in the last year.

The post Green light: NAB (ASX:NAB) share price slips as ACCC gives nod to Citi deal appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: EML rockets, NAB given ACCC green light
• Macquarie (ASX:MQG) is now a big four bank
• Is the CBA (ASX:CBA) share price premium relative to other big banks justified?
• Why this fundie likes NAB (ASX:NAB) shares in a firming interest-rate environment
• Analysts name 2 ASX 200 blue chip shares to buy now

The author has no positions 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.

from The Motley Fool Australia https://ift.tt/3HU8fru

The DevEx Resources Ltd (ASX: DEV) share price has been on a roll so far this week. In specific terms, the mineral exploration company has gained an astounding 41% since Friday’s close.

At the time of writing, shares in DevEx Resources are being exchanged for 78 cents apiece, up 14.7% today.

Despite the significant surge in DevEx’s value, there have been no price-sensitive announcements released during this time. However, two major events have recently taken place that might have investors paying closer attention.

What’s going on with the DevEx share price?

The impressive and sudden DevEx share price appreciation began on Monday, with the company’s shares rising by around 23%. Yet, the company did not publish any news on the first day of the week. However, that didn’t stop more than 4.6 million shares from being traded in the minerals explorer on that day — its third-largest day of volume so far this month.

Yesterday, DevEx held its annual general meeting (AGM) where the company’s chair, Tim Goyder, discussed the potential laying ahead. Bolstering shareholder confidence, Goyder inferred that the company is only just getting started on its growth path.

Regarding DevEx’s uranium ambitions, Goyder stated:

Given the rapidly changing dynamics in the uranium sector, I believe that our uranium exploration strategy has the potential to deliver significant value for shareholders in the coming 12 months.

Additionally, recent insider transactions carried out by the DevEx directors could be attracting increased investor interest, pushing the DevEx share price higher. According to the notices, most of the transactions carried out since 10 November have been as a result of the exercise of options. Although, two buy transactions by Goyder worth a total of around $335,000 were on-market trades.

In total between 10 and 18 November, more than $1.1 million worth of shares in DevEx were purchased by directors. Potentially outside investors are viewing this as a vote of confidence in the ASX-listed exploration company.

The DevEx share price has gained a mind-blowing 237% since the start of the year.

The post How is the DevEx (ASX:DEV) share price climbing 42% so far this week? appeared first on The Motley Fool Australia.

More reading

• Why is the DevEx (ASX:DEV) share price up 21% on Monday?

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.

from The Motley Fool Australia https://ift.tt/3E5XCjj

The 4DS Memory Ltd (ASX: 4DS) share price is one of the worst performers on the ASX today. This comes after the memory storage company announced its capital raising efforts and came out of the trading halt it had been in since Tuesday.

At the time of writing, 4DS Memory shares are down a sizeable 11.86% to 5.2 cents. In the past month alone, its shares have been hit hard by investors, falling a massive 60%.

What’s happening with 4DS Memory?

A catalyst for the steep dive in the 4DS Memory share price today is possibly the fear of an impending share dilution.

According to its release, 4DS Memory has received firm commitments to raise $2.5 million through a share placement.

The offer was presented to both domestic and international institutional investors at an issue price of 4.8 cents apiece. This equates to roughly 52 million new ordinary shares being added to the company’s registry.

In addition, 4DS Memory will offer a share purchase plan (SPP) to existing shareholders to raise a further $2.5 million. The SPP will be offered on the same terms as the placement.

The lead manager, Mac Equity Partners International, will also receive 5 million options exercisable at 8 cents each. This will expire within 2 years from the date of issue.

The funds received from the equity raise will be used towards supporting a number of growth initiatives for the company. This includes:

• Research and development costs;
• Working capital; and
• Expenses of the offers such as the 6% lead manager fee.

The closing date of the SPP offer is set for 14 December, with issuance of the shares on 16 December.

About the 4DS Memory share price

The start of 2021 saw the 4DS Memory share price shoot higher until the end of January, which was followed by a sideways channel.

Although, since mid-August, it has been on a continuing decline, posting a 12-month loss of roughly 65%.

4DS Memory has a market capitalisation of around $67.43 million, with more than 1.32 billion shares on its books.

The post The 4DS Memory (ASX:4DS) share price is plummeting 11% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• The 4DS Memory (ASX:4DS) share price is halted. Here’s what you need to know
• 4DS Memory (ASX:4DS) share price crashes 46% amid technical stumble

Motley Fool contributor Aaron Teboneras owns shares of 4DSMEMORY FPO. 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.

from The Motley Fool Australia https://ift.tt/3HRocyN

The Gentrack Group Ltd (ASX: GTK) share price is out of the blocks and is now trading 7.6% higher at $1.84. Gentrack is catching bids today after the provider of software solutions for utilities and airports released its FY21 results.

Here are the key takeouts from Gentrack’s results for the full-year to 30 September 2021.

Gentrack share price gains as EBITDA beats guidance

The highlights from Gentrack’s financial performance include:

• Revenue of $105.7 million, up 5.2% on FY20 and in line with guidance;
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in ahead of guidance at $12.7 million, also a 5.0% gain on FY20;
• Statutory net profit after tax (NPAT) of $3.2m; and
• Net cash in a stronger position of $26.0 million, up 54.8% year on year.

What happened in FY21 for Gentrack?

The Gentrack share price is climbing today amid positive results. Revenue growth last year was driven by an 8.8% increase in Gentrack’s utilities business to $89 million. New customer wins and growth from existing customers offset previous years’ losses, according to the release.

However, utilities annual recurring revenue (ARR) was down 0.3%, after absorbing approximately $4 million in customer revenue losses from prior periods.

The company wasn’t immune to the effects of COVID-19. Its Veovo airport brand saw revenue slip from $18.7 million to $16.7 million in FY21 due to the impact of COVID on the aviation industry.

Yet, despite the down-step, it still remained profitable and ARR was up 7.7% for the division.

Underlying group EBITDA of $12.7m came in ahead of guidance management issued earlier in 2021, whereas costs were up 5.2% on FY20.

The release notes Gentrack continues to “experience a drag on revenue growth, from prior period losses and supplier failures in the UK”.

The number of business to consumer (B2C) supplier failures in the UK has accelerated in the last 3 months due to the global energy crisis, the company said. However, this does not seem to have had a negative impact on the Gentrack share price.

According to the company, the government has now enforced a price cap for the B2C segment. It correlates this cap with a total of “9 customer insolvencies occurring since the beginning of FY21, compared to 6 in total from FY17 through FY20”.

Gentrack anticipates there “may be some further supplier failures in the coming winter months after which [its] expectation is that the market will stabilise”. It notes there are allowances for these potential failures in its forecasts.

What’s the outlook for Gentrack?

The company today reconfirmed that FY22 group revenues are expected to be ahead of FY21 revenue of $105.7 million announced today.

Still, Gentrack is not providing earnings guidance for FY22. It also confirmed no changes to its FY24 targets provided on 16 June 2021.

In addition, the company notes in its “Strategic Growth Pillars 2 and 3” strategy that new engagements have been secured, and that these engagements and pipeline “will enable FY22 growth”.

In the past 12 months, the Gentrack share price has climbed more than 30%, rallying 27% this year to date. Its shares have gained around 4% in the past month and are also up 4% for the week (since last Thursday’s close).

The post Gentrack (ASX:GTK) share price leaps 8% on EBITDA surprise appeared first on The Motley Fool Australia.

More reading

• Kogan (ASX:KGN) share price higher on trading update and 5-year growth plan
• What is the difference between buying Square and Afterpay (ASX:APT) shares?
• Straker Translations (ASX:STG) share price leaps 7% on record revenue results
• Leading broker upgrades Webjet (ASX:WEB) shares to a buy rating
• Here’s why the Nufarm (ASX:NUF) share price is falling today

The author has no positions 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.

from The Motley Fool Australia https://ift.tt/3CPukni

The Kogan.com Ltd (ASX: KGN) share price is pushing higher on Thursday afternoon.

At the time of writing, the ecommerce company’s shares are up 3% to $9.14.

Why is the Kogan share price pushing higher?

Investors have been bidding the Kogan share price higher this afternoon following the release of its annual general meeting presentation.

That presentation included an update on its performance in FY 2022 and its aspirations for the next five years.

And judging by the Kogan share price reaction, investors liked what they saw.

How is Kogan performing?

According to the release, Kogan has delivered sales growth during the first four months of FY 2022.

Kogan’s Founder and CEO, Ruslan Kogan, commented: “Based on unaudited management accounts, we are proud to have delivered another period of top line growth.”

Another positive is the work the company has done to tackle its inventory issues. Mr Kogan revealed that it has right-sized its inventory levels since the end of FY 2021 and brought warehousing costs down.

At the same time, Kogan has continued to strategically invest for long-term growth through expanding marketing activity to grow the Kogan First member base. The Chief Executive is confident this will have long-term benefits for the company.

In addition, the Kogan Marketplace and Kogan First offerings have performed strongly. Mr Kogan believes this leaves the company well placed to drive growing sales through the key Christmas trading period of November and December.

Five-year targets

Also potentially giving the Kogan share price a boost today is the unveiling of the company’s five-year aspirational growth targets.

Ruslan Kogan commented: “When we listed the Company, we had just over $200m of Gross Sales, and in five years we have managed to grow to more than $1 Billion in Gross Sales. Five years on, and taking a moment to look forward across our next five year plan – we aim to achieve $3 Billion in annual Gross Sales and 1,000,000 Kogan First Subscribers by FY26.”

“I believe we can do this by continuing to re-invest in our customers. Ensuring that our customers get the best deals, on a wide range of products, delivered quickly and efficiently. The trust and confidence we build with our customers will have customers coming back to our platform time and time again,” he added.

The post Kogan (ASX:KGN) share price higher on trading update and 5-year growth plan appeared first on The Motley Fool Australia.

More reading

• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend
• 5 things to watch on the ASX 200 on Thursday
• Kogan shares or Temple & Webster? This expert has their say
• What are Kogan (ASX:KGN) shares really worth? Here’s what Scott Phillips says
• These are the 10 most shorted ASX shares

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 shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3cI4qaG

It remains one of the biggest investing stories of the year in 2021 so far. Afterpay Ltd (ASX: APT), the homegrown buy now, pay later (BNPL) pioneer, is to be acquired in full by the US payments giant Square Inc (NYSE: SQ).

When this news first broke back in August, it caused quite a storm. Not only were investors excited that Afterpay, a company that had become the hottest of ASX growth shares over the past few years, would be getting bought out. But at a rough cost of $39 billion (when the deal was announced), this would be the largest acquisition in Australian corporate history.

Afterpay and Square shares: what’s the difference now?

This takeover deal is an all-scrip one. That means that it will be conducted through the issuance of new Square shares. No cash is likely to physically change hands. Under the deal, Afterpay shareholders are set to receive 0.375 shares of Square for every Afterpay share owned. So if this deal goes ahead (which looks likely seeing as Square and Afterpay’s management are both recommending so), Afterpay shareholders will become Square shareholders.

So that begs the question, what is the actual difference between buying Afterpay or Square shares today?

Well, to answer that, let’s first look at what this deal values an Afterpay share at. So Square closed at a share price of US$215.47 this morning (our time). Thus, if this transaction were to be completed right now, Afterpay shareholders would receive the equivalent of roughly $112.19 (worth 0.375 of a Square share) for every Afterpay share owned. That includes the impact of the current exchange rate.

At the time of writing, Afterpay shares are trading at a share price of $110.18. That’s up 2.7% for the day so far. You might notice a bit of a gap there. And that is the main difference between buying Afterpay shares and Square shares night now. Yes, it looks like it’s a better deal to just buy Square shares. You would get a better price for the same investment. That’s assuming the deal goes ahead without a hitch when it is scheduled to “in the first quarter of 2022”.

Buy now, get Square shares later?

But the market knows that ‘it ain’t over till it’s over’, and thus seems to be still assigning a small discount to Afterpay shares as a result.

If the deal does go ahead as planned, existing Afterpay shareholders will either be able to receive the US-based Square stock that we’re talking about today. But Square has also said it will set up a CHESS Depository Interest (CDI) for Square on the ASX. That means that shareholders will be able to choose to get these Afterpay CDIs instead of the US-listed Square shares. This also means that all ASX investors will be able to buy Square shares on our own market.

So this all hinges on the Square acquisition of Afterpay going through. Once that happens, investors will only have Square to buy, and no Afterpay. Well, not quite – they will be one and the same. Now we just have to wait and see if that indeed comes to pass.

The post What is the difference between buying Square and Afterpay (ASX:APT) shares? appeared first on The Motley Fool Australia.

More reading

• How Afterpay (ASX:APT) is using AI in its push for BNPL domination
• First there was Afterpay (ASX:APT), but soon Beforepay will be hitting the ASX
• Own Afterpay (ASX:APT) shares? Here’s how the company is pushing for carbon neutrality
• Why Afterpay, City Chic, EML, and Nickel Mines shares are pushing higher
• Afterpay (ASX:APT) share price shoots higher as Square vote looms

Motley Fool contributor Sebastian Bowen owns shares of Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3xlMBYf