Category: Stock Market

Consumer advocacy group Choice’s annual Shonky Awards is an “honour” roll that no business wants to be named in.

The awards recognise the worst products and services of the year, in terms of consumer benefit.

So it’s no wonder that ASX shares for buy now, pay later provider Humm Group Ltd (ASX: HUM) had plunged 0.58% by Thursday afternoon after its product was named in as a “winner” of a Shonky.

According to Choice, it has singled out Humm for lending up to $30,000 with “dubious checks and balances to keep Australians safe from predatory debt”. 

Choice chief Alan Kirkland is concerned BNPL players are deliberately avoiding safe lending laws.

“That means they don’t need to check whether you can afford to repay a debt before they lend you money,” he said.

“Choice asked Humm 4 times how they check whether they are lending safely and we could not get a straight answer. This is unregulated credit, pure and simple.”

Humm is ‘proud’ of its customer relationships

In response, a Humm spokesperson told The Motley Fool that the company is “proud of its strong relationship with customers”.

“We conduct a detailed product suitability check with third-party credit bureau Illion and mandatory income verification on all app-driven purchases in-store and online over $1,000,” said the spokesperson.

“We then utilise our own sophisticated credit algorithms to ensure that customers have the ability to repay.”

The company cited that fewer than 1.5% of its customers apply for financial hardship support.

Humm shares have plunged more than 24% so far this year.

BNPL can be ‘dangerous’

According to Choice, Humm was voted within the financial counsellor community as the “worst BNPL provider” for hardship assistance.

Financial Counselling Australia chief Fiona Guthrie called for the BNPL industry to be regulated like other credit providers.

“Our recent survey of buy now, pay later services showed that Humm is the worst company for helping customers in financial difficulty,” she said.

“The industry overall is not doing well. One of the reasons for that is because buy now, pay later can be a dangerous product. It’s so easy for people to find themselves with multiple accounts and in over their head.”

Unlike most other BNPL providers, Humm has been around the block a few times. 

The Sydney business has been offering finance products since 1991 before its recent foray into the BNPL area.

The post ‘Worst BNPL’: ASX company called out for ‘unsafe lending’ appeared first on The Motley Fool Australia.

More reading

• Humm (ASX:HUM) share price falls despite revealing recommencement of dividends
• Humm (ASX:HUM) share price edges higher on first quarter results

Motley Fool contributor Tony Yoo 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 Humm Group 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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The NIB Holdings Limited (ASX: NHF) share price has been among the best performers on the ASX 200 on Thursday.

In afternoon trade, the private health insurer’s shares are up 4.5% to $7.05.

This latest gain means the NIB share price is now up almost 17% in 2021.

Why is the NIB share price charging higher today?

The catalyst for the rise in the NIB share price today has been the release of a trading update at its annual general meeting. That update reveals that NIB has started FY 2022 in a very positive fashion.

According to the release, the private health insurer’s premium revenue increased 8.5% over the prior corresponding period to $669.5 million during the first quarter. This was driven by modest increases in policyholder numbers in Australia and New Zealand and premium increases.

In respect to the former, Australian resident health insurance (ARHI) policyholders increased 0.6% and New Zealand policyholders grew 1.3%. Offsetting this slightly was a 0.1% decline in international inbound health insurance (IIHI) policyholders.

Also potentially giving the NIB share price a boost was its claims update. The release shows that estimated ARHI claims fell 2.4% over the prior corresponding period to $442.5 million.

What’s next?

There was no mention of its guidance at the meeting. In light of this, the company appears to still be targeting ARHI net policyholder growth in the range of 2% to 3%.

At the meeting, NIB‘s new Chair, Steve Crane, spoke positively about the future.

He said: “While FY21 has certainly been another extra-ordinary year and not without its challenges, our business is in very good shape. We continue to grow with increased profitability, we are well capitalised and there is no shortage of opportunity ahead.”

The post Why the NIB (ASX:NHF) share price is one of the best performers on the ASX 200 today appeared first on The Motley Fool Australia.

More reading

• Why CSR, Hipages, NIB, and Paladin Energy shares are racing higher
• ASX 200 (ASX:XJO) midday update: Zip’s record month, Domino’s crashes
• 5 things to watch on the ASX 200 on Thursday
• Why is the Medibank (ASX:MPL) share price underperforming NIB (ASX:NHF) lately?
• ASX 200 company pays staff $1,500 to work from home

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. 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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The Ethereum (CRYPTO: ETH) price just broke into new all-time highs.

According to data from CoinMarketCap, one Ether was trading for US$4,665 (AU$6,220), 8 hours ago from the time of writing.

That surpasses the previous record high, set on 11 May this year. And it gives the world’s No. 2 crypto a market capitalisation of US$540.5 billion.

The Ethereum price has retraced 2% since setting its new highwater mark, currently trading for US$4,570.

As for the all-time low?

While we’re on the subject of records, if you’re wondering when the Ethereum price hit rock bottom that was 6 years ago. On 21 October, less than 3 months after its blockchain went live, Ether fell to an all-time low of 42 US cents.

If you’d snapped up some tokens at that price, you’d be sitting on a virtual gain of 1,086,252% today. Of course, you would have had to sit through 72 months of wild price volatility to get there.

Why did the Ethereum price have such a strong October?

Today’s record high Ethereum price comes on the back of the more than 40% gains posted last month.

Ether started October trading for US$2,995 (AU$3,993) and finished the month at US$4,431.

One of the tailwinds helping propel Ether higher has been the strong performance of the world’s biggest crypto, Bitcoin (CRYPTO: BTC). When Bitcoin gains, or loses, many altcoins tend to follow.

And Bitcoin also posted stellar gains in October, finishing the month up 41%. Some of the bullish price moves related to investor enthusiasm over the first US-listed futures-based Bitcoin exchange-traded fund (ETF). The ProShares Bitcoin Strategy ETF (NYSE: BITO), launched on 19 October, has seen near-record inflows.

The Bitcoin ETF has many analysts and investors speculating that an Ethereum ETF is only just around the corner. Which could also be helping drive resurgent animal spirits for the token.

Real-world applications

Another potential force helping boost the Ethereum price is its real-world application for business and finance.

Bitcoin is mainly used as a potential store of wealth or to accept or pay for transactions. But Ethereum can be used for things like self-executing smart contracts and other decentralised applications.

On 21 October, Darren Abrams, co-founder and managing director of digital currency provider Aus Merchant Investments, told the Motley Fool:

Ethereum is a platform, upon which a multitude of decentralised applications are built. These decentralised applications or ‘dapps’ as they are often referred to, are part of a revolution in the computing space known as web 3.0… While Bitcoin is central to the Web 3.0 movement, it’s use case is limited. Ether, and other smart contract blockchains, have an almost infinite number of use cases.

Is the Ethereum price inflation resistant?

We’ll leave off Ethereum’s price run to new record highs with a nod to investors’ inflationary concerns.

Bitcoin has long been billed as digital gold. A haven in times of broad stroke price increases. As with gold, that hasn’t always been the case. But the mantra remains.

Now Ether is beginning to garner similar attention.

As Bloomberg notes, “Fans of Ethereum are jumping on the anti-inflation narrative“.

Whether those fans are proven correct over the longer term or left nursing heavy losses remains to be seen.

Invest with care.

The post The Ethereum (CRYPTO: ETH) price just hit all-time highs after a strong October appeared first on The Motley Fool Australia.

More reading

• The first crypto ETF (ASX:CRYP) has just hit the boards. Here’s what you should know
• Why did the Bitcoin (CRYPTO:BTC) price have such a great month in October?
• CBA (ASX:CBA) just became the first Aussie bank to offer Bitcoin and crypto services
• Did an Aussie invent Bitcoin? The $86 billion question facing a US court
• Here’s why cryptocurrencies could take over the world: expert

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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.

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Shares in uranium exploring company Deep Yellow Limited (ASX: DYL) are soaring this afternoon to now trade 11% higher at $1.07 apiece.

Deep Yellow shares have been on the move following a company announcement regarding the mineral resource estimate (MRE) for its Omahola project.

Here are the details.

Why is the Deep Yellow share price charging higher?

Deep Yellow advised of an MRE upgrade at its second focus project – the Omahola Project, located in Namibia.

The site includes the Ongolo, MS7 and Inca uranium deposits, and it is owned by Deep Yellow through its 100% owned subsidiary Uranium Namibia Ltd.

Previously, the mineral resource measured between 2009–2013 at Omahola was 45 million pounds (Mlb) uranium at 420 parts per million (ppm), conforming to the JORC (2004) Code.

Today’s release notes that Deep Yellow now reports its MRE to the JORC (2012) Code at a 100ppm uranium cut-off.

It now defines a measured, indicated and inferred mineral resource base of 125.3Mlb at 190ppm uranium at the site.

Omahola now provides the company with “another significant exploration target, which the company has now started to progress”.

Deep Yellow confirmed in the release today that more exploration has commenced across the site to unlock further value at Omahola.

For instance, it has started follow-up drilling “through a shallow 7,100m 200-hole [Reverse Circulation] drilling program”.

The announcement also follows up on two previous updates out of Deep Yellow’s corner in the past month, where it confirmed the completion of drilling programs at its Nova venture and Tumas project respectively.

There, it upgraded the MRE at its Tumas site as well, now defining a probable ore reserve of 31Mlb of uranium at 344ppm. Deep Yellow estimates that the Tumas mine’s life has a tenure of around 11-12 years.

The news comes as uranium prices whipsaw in the spot markets, with contracts trading in a range of US$38/lb to US$51 per pound in the last 2 months – a 34% spread in pricing.

At the time of writing, the alternative energy source is commanding $42.70/lb, down 13% in a single week.

A bit more on the Deep Yellow share price

It’s been a year of joy for Deep Yellow and its share price, with shareholders enjoying a 127% since January 1.

Longer-term buyers have seen their positions climb over 230% in the green, meaning Deep Yellow shares have substantially outpaced the benchmark S&P/ASX 200 index (ASX: XJO)’s return of 22% in that time.

The post Deep Yellow (ASX:DYL) smashes resource estimate sending share price 11% higher appeared first on The Motley Fool Australia.

More reading

• Why is the Deep Yellow (ASX:DYL) share price gaining 5% on Monday?
• Here’s why the Deep Yellow (ASX:DYL) share price is up 5% on Tuesday
• Why ASX uranium shares are in focus on Tuesday
• ASX uranium shares are surging this week. Here’s why
• Here’s why ASX uranium shares are booming double digits across the board on Wednesday

The author Zach Bristow 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.

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The Qantas Airways Limited (ASX: QAN) share price is in the green today. Meanwhile, parts of the airline’s planes have become a resting ground for Californian wildlife.

The term ‘snakes on a plane’ was made famous by a cringeworthy 2006 movie starring Samuel L. Jackson. But, just as plane-based snakes concerned Jackson, they’re also challenging aviation engineers working to bring some Qantas planes back into action.

The airline’s fleet of A380s is currently resting in the low humidity of California’s Mojave desert. Unfortunately, the climate that makes the desert the ideal place to park planes also makes a perfect habitat for dangerous wildlife.

Qantas’ engineers have taken to using broom handles to scare away venomous rattlesnakes and scorpions.

Though, the planes aren’t expected to be parked for much longer. Qantas’ CEO Alan Joyce recently announced the first Qantas flagship A380 will return to Australia on Christmas Day and more will follow in 2022.

At the time of writing, the Qantas share price is $5.65, 1.62% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.14% today.

Let’s look at what engineers must tackle to get Qantas’ parked fleet back into service.

A380 versus nature

While returning the A380s to service might seem challenging, passengers needn’t fear. The airline’s crew has plugged all orifices to stop wildlife from making a home inside the planes.

Though, crew charged with rotating the aircrafts’ wheels every week need to be slightly more careful.

Qantas’ manager for engineering in Los Angeles, Tim Heywood, commented on the potentially dangerous job earlier this year, saying:

Every aircraft has its own designated “wheel whacker” (a repurposed broom handle) as part of the engineering kit, complete with each aircraft’s registration written on it.

The first thing we do before we unwrap and start any ground inspections of the landing gear in particular is to walk around the aircraft stomping our feet and tapping the wheels with a wheel whacker to wake up and scare off the snakes. That’s about making sure no harm comes to our engineers or the snakes.

Qantas engineers have also been busy inspecting aircrafts’ fuselage and wings for animal and birds’ nests.

Such nests can become a bigger issue than many would presume.

The European Union Aviation Safety Agency has recognised a trend of aircrafts’ speed and altitude indications being unreliable following a period of storage.

The agency found the issues were generally caused by the likes of insect nests, which contaminated air data systems.

Qantas share price snapshot

Snakes or no snakes, this year has been a great time for Qantas on the ASX.

The Qantas share price has gained 15% since the start of 2021. It is also 23% higher than it was this time last year.

The post The Qantas (ASX:QAN) share price is lifting, but returning planes to the air isn’t without challenges appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price climbs as overseas travel ban lifts
• I’m buying these 2 cheap ASX shares right now: expert
• Qantas (ASX:QAN) share price soars to 52-week high on international travel update
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• Qantas (ASX:QAN) share price on watch after ramping up international travel plans

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.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on form and pushing higher again. At the time of writing, the benchmark index is up 0.2% to 7,407.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

CSR Limited (ASX: CSR)

The CSR share price is up 5% to $6.31. This follows the release of the building products company’s half year results this morning. According to the release, for the six months ended 30 September, CSR reported a 6% increase in revenue to $1.1 billion and a 41% lift in EBIT to $132.6 million.

Hipages Group Holdings Ltd (ASX: HPG)

The Hipages share price has jumped 8% to $4.05. The catalyst for this was news that the tradie marketplace has made a key investment. Hipages has acquired a 25% interest in Bricks + Agent for $6.25 million. The release notes that Bricks + Agent is one of Australia’s leading property management technology platforms. It has 360,000 users, a pipeline of almost 500,000 properties under management, and 21,000 tradies on its platform.

NIB Holdings Limited (ASX: NHF)

The NIB share price is up 4.5% to $7.05. This follows the release of the private health insurer’s annual general meeting update. That update revealed that NIB achieved an 8.5% increase in premium revenue to $669.5 million during the first quarter. NIB also reported a 0.6% increase in Australian resident health insurance (ARHI) policies and a 2.4% decline in estimated ARHI claims to $442.5 million.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price has jumped 13% to 94.2 cents. This morning the uranium producer provided an update on the Langer Heinrich Mine restart plan. According to the release, the plan confirms the restart cost estimate of US$81 million and a 17 year mine life. In addition, the company revealed that its life of mine production target has increased to 77.4Mlb of U3O8 from 76.1Mlb.

The post Why CSR, Hipages, NIB, and Paladin Energy shares are racing higher appeared first on The Motley Fool Australia.

More reading

• 30% jump in profit sees CSR (ASX:CSR) share price spike
• ASX 200 (ASX:XJO) midday update: Zip’s record month, Domino’s crashes
• 5 things to watch on the ASX 200 on Thursday
• 3 fantastic ASX growth shares to buy this month
• Why Aussie Broadband, BlueBet, Hipages, and JB Hi-Fi shares are rising

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 Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Hipages Group Holdings Ltd. and 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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The 4DS Memory Ltd (ASX: 4DS) share price has fallen off the edge of a cliff on Thursday morning. This comes as the semiconductor developer resumes trade after releasing a technical update.

At the time of writing, 4DS shares are sitting at a sombre 7 cents, down 46.15% from its previous close of 13 cents per share. In the process, the company has clocked in a new 52-week low of 6.9 cents during today’s session.

Let’s have a look at what has instigated this staggering fall in value.

What’s going on with the 4DS Memory share price today?

Investors are flocking to the exit as the 4DS Memory share price craters following its latest technical update. Understandably, spectators would have been nervous after nearly a month of trading suspension. Unfortunately, the nerves were not calmed by the company’s latest release.

According to the announcement, a ‘potentially modest degradation’ in endurance had been identified in its third non-platform lot wafers after carrying out extensive additional testing. This was noted when the wafers were assessed with up to one order of magnitude boost in read speed.

This misstep in what the company had hoped it would deliver at this point in time is likely weighing on the 4DS Memory share price today.

Additionally, the company also pointed out potential degradation in the endurance of the second non-platform lot compared to the results reported on 1 February 2021. Though, the endurance remains to be several orders of magnitude better than that of NAND storage.

In relation to this, 4DS highlighted that this might have been caused by test-related issues because the memory cell did not utilise an access device. An access device is essentially the difference between non-platform and platform lots in 4DS’ testing.

Hence, the third platform lots are expected to yield clearer data relating to the endurance of the chips. The next lot of testing will involve the third platform lots using imec access transistors. This should accommodate more precise measurements at higher currents. Although, this evidently has provided reassurance to the 4DS Memory share price.

Delays and renegotiations

4DS is seeking to fabricate more lots in collaboration with imec in early 2022. This will be preceded by a memory stack etch mask change and further etch process optimisation. In turn, the company hopes this will resolve the issues which resulted in the partial failure of the second platform lots. The ‘out-of-fab’ date is expected to be July 2022.

Furthermore, 4DS has renegotiated its collaboration agreement with imec due to the latest stumble setting back timelines. As a result, the new agreement will see 4DS pay 600,000 euro (~A$934,000) to imec for the first 7 months of 2022.

The new agreement will see its collaboration extended out to the end of 2022. Despite this, the 4DS Memory share price is hemorrhaging today.

The post 4DS Memory (ASX:4DS) share price crashes 46% amid technical stumble appeared first on The Motley Fool Australia.

More reading

• What’s going on with the 4DS Memory (ASX:4DS) share price?

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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The Kairos Minerals Ltd (ASX: KAI) share price has been a strong performer on Thursday.

At one stage today, the lithium explorer’s shares were up 17% to 3.4 cents.

The Kairos share price has since dropped back but remains up 7% to 3.1 cents at the time of writing.

Why is the Kairos share price rocketing higher?

Investors have been bidding the Kairos share price higher today after it released an update on soil sampling at the Wodgina Lithium Project.

According to the release, the company has identified extensive new Lithium-Caesium-Tantalum (LCT) targets at the 100%-owned project, 90 kilometres south of Port Hedland in Western Australia.

The targets were identified following the receipt of partial results from a recent successful geochemical sampling program. That program saw 1,517 soil samples collected at 200m x 100m spacing and submitted for Ultrafine+ analysis at the Labwest Laboratory in Perth. Kairos advised that it has received results for 837 samples to date.

The release explains that two high-priority LCT targets that were identified are located less than 3km from the Wodgina Lithium Mine owned by Mineral Resources Limited (ASX: MIN) and Albemarle Corporation.

Results exceed expectations

Kairos’ Executive Chairman, Terry Topping, commented: “We always had high hopes for the lithium prospectivity of our Wodgina Project given its location immediately adjacent to one of the world’s most significant lithium mines, which is set to restart production next year. I think it’s fair to say these early results utilising the state-of-the-art Ultrafine+ soil sampling methodology have exceeded our expectations.”

“With results received for around two-thirds of the program, we have been able to delineate two large lithium-caesium-tantalum targets, one of which extends over a strike length of some 1.7km and is supported by the presence of mapped pegmatites and high-grade spodumene rock chip samples.”

“These are outstanding targets for lithium exploration and will now be prioritised as part of our broader ongoing exploration efforts in the Pilbara,” he added.

What’s next?

The company is awaiting results from around a third of the samples.

Once they have been received and analysed, Kairos will start an extensive mapping and rock chip program to further refine the targets and identify potential drilling locations for next year.

The post Why the Kairos (ASX:KAI) share price is rocketing 17% higher today appeared first on The Motley Fool Australia.

More reading

• The first crypto ETF (ASX:CRYP) has just hit the boards. Here’s what you should know
• These were the 5 best performing ASX retail shares in October
• 2 ASX tech shares that might be buys in November 2021
• The BetMakers (ASX:BET) share price is edging higher today. Here’s why
• Why the Amcor (ASX:AMC) share price is outperforming today

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. 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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It’s official.

The BetaShares Crypto Innovators ETF (ASX: CRYP) launched on the ASX this morning.

ASX investors now have the means to gain exposure to a basket of up to 50 assets (currently 32) closely linked to a range of cryptos, such as Bitcoin (CRYTPO: BTC) and Ethereum (CRYPTO: ETH).

Investors can buy and sell shares in the exchange-traded fund (ETF) just as they would any other ASX listed shares.

Take note, though, that the ETF doesn’t invest directly in Bitcoin, or any altcoin for that matter.

Exposure to the crypto economy

Instead, as the BetaShares website explains, the first ASX crypto 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”.

Those fees are listed as 0.67% per year, with the caveat that “certain additional costs apply”.

As of this morning, the crypto ETF’s top holdings are Silvergate Capital Corp (12.3%), Marathon Digital Holdings Inc (11.8%), Galaxy Digital Holdings Ltd (11.1%), and Coinbase Global Inc (9.8%).

BetaShares points out that “CRYP should be considered very high risk”.

Indeed, as cryptocurrency prices remain highly volatile, investors should be prepared for some potentially large price swings for CRYP and any future ASX crypto ETFs.

The path to crypto ETF ASX listing

Last Friday, the Australian Securities and Investments Commission (ASIC) released its guidance on cryptocurrency-related investment products.

As my Foolish colleague Tony Yoo noted yesterday: “BetaShares chief Alex Vynokur welcomed the nod from the corporate watchdog for Australians seeking cryptocurrency exposure but afraid of trading on ‘unregulated exchanges’.”

Last week Vynokur told Business Insider Australia:

We know that there are millions, millions of people around the world [invested in crypto], and close to 2 million Australians that have actually invested in cryptocurrency directly.

But we also know for every person that invests directly in cryptocurrency, there is also a person that wants to have a diversified exposure to the company’s really thriving ecosystem.

While other crypto ETFs could now follow CRYP’s virtual footsteps to list on the ASX, being the first mover can have its advantages. This was witnessed with the launch of the first US-listed futures-based Bitcoin ETF (BITO), which commenced trading last month with huge investor interest.

The post The first crypto ETF (ASX:CRYP) has just hit the boards. Here’s what you should know appeared first on The Motley Fool Australia.

More reading

• Why did the Bitcoin (CRYPTO:BTC) price have such a great month in October?
• CBA (ASX:CBA) just became the first Aussie bank to offer Bitcoin and crypto services
• Did an Aussie invent Bitcoin? The $86 billion question facing a US court
• Here’s why cryptocurrencies could take over the world: expert
• ASX’s first cryptocurrency ETF is listing Thursday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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.

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Shares in building products manufacturer CSR Limited (ASX: CSR) are inching higher in early afternoon trading to now change hands at $6.30 apiece.

CSR shares have come off an intraday high of $6.36 before retreating back to the current price following the release of the company’s quarterly activities report.

Here we cover the central points from CSR’s performance in the quarter ending 30 September 2021.

CSR share price spike on 30% net profit growth

CSR outlined several investment highlights from the quarter, including:

• Trading revenue of $1.1 billion was up 6% from the same time last year
• Earnings before interest and tax (EBIT) of $132.6 million, up 41% year on year
• Building products EBIT growth of 25% year on year to $120.6 million
• Aluminium EBIT grew to $18.3 million, up from $6.2 million the year prior
• Property EBIT also grew following Moss Vale site sale to $6.6 million
• Statutory net profit after tax (NPAT) of $156.6 million up from $58.7 million year on year
• NPAT before significant items growth of 30% year on year at $86.6 million
• Final transaction at Horsley park secured in July, expected to generate $408 million by March 2025.
• Fully franked interim dividend of 13.5 cents per share.

What happened this quarter for CSR?

The construction materials giant recognised a solid quarter of growth, underscored by strengths in the building market and pricing in the aluminium markets.

Revenue of $1.1 billion was a 6% year on year gain for the name behind the famous Gyprock brand.

Whereas it also recognised EBIT of almost $133 million – a 41% gain over the year.

This was subcategorised into a 25% growth in its building products EBIT, driven by “positive conditions in the detached market, strong operational execution, manufacturing performance and good cost control” throughout the pandemic.

Furthermore, CSR also grew its property EBIT to $6.6 million from $1.7 million compared to the same time last year, following the sale of a Moss Vale site it owned.

Its property arm is also expected to generate an additional $408 million in the year ending 31 March 2025 following the staged sale of land at the company’s Horsley Park site.

Underlying strengths in the aluminium spot markets also helped drive earnings this quarter for CSR, with its Aluminium division scoring a 195% year on year gain to $18.3 million.

This was thanks to its equity stake in the Tomago aluminium smelter in Australia.

Note that whilst aluminium pricing spiked 15% during the quarter, and then took off once more afterwards, it is now trading back at its early September ranges of US$2,687/tonne – falling 15% in around 2 weeks.

This strength in operating income carried through CSR’s income statement, with statutory NPAT including significant items coming in at almost $157 million for the quarter.

CSR notes the ‘significant item’ in question relates to “recognition of $71.2 million in carry forward capital tax losses” from a prior period.

Backing this out of the equation, CSR still recognised a 30% jump in NPAT to $86.6 million, enabling shareholders to relish in a fully franked 13.5 cents per share interim dividend – up from 4 cents per share last year.

What did CSR management say?

Speaking on the announcement, CSR’s managing director and CEO Julie Coates said:

CSR’s businesses have performed very well despite the ongoing impacts of COVID on our operations. In Building Products, we made the most of the positive conditions in the detached market. The team executed well to deliver a strong result underpinned by good manufacturing performance and ongoing cost discipline.

Coates continued:

We have also made good progress across a number of key strategic initiatives. We continue to develop our customer solutions and supply chain opportunities in Building Products. And we are unlocking further value from our property assets and development capabilities, securing the final tranche at Horsley Park with expected proceeds in excess of $400 million from the 52 hectare site over a six year period.

Regarding the company’s dividend, Coates concluded:

CSR continues to deliver strong cash generation to invest in growth opportunities in the business as well as returns for shareholders with the interim dividend at the top end of our dividend policy.

What’s next for the CSR share price?

CSR gave guidance on its property and aluminium divisions but was hesitant to provide further colour on its building segment.

This is due to uncertainties in the market going forward given supply constraints and reduced local demand, per the release.

In its property arm, the company forecasts EBIT for the year ending March 2022 (YEM22) to come in at around $34 million.

The company also improved its hedge book for its aluminium exposure this quarter. It is now hedged out to a term of 4 years from large price swings in the price of aluminium, per the release.

As such, it expects EBIT for YEM22 in a range of $35 million to $41 million in its aluminium segment in YEM22.

It makes this assumption on the basis that “all other revenue and cost areas (including coal costs) are unchanged”.

CSR also asserts that “Group earnings will be supported over coming years by contracted transactions from property and a strong hedge position in aluminium”.

CSR and its share price have fared well this past 12 months, having gained 25% in that time after rallying another 19% this year to date.

The post 30% jump in profit sees CSR (ASX:CSR) share price spike appeared first on The Motley Fool Australia.

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The author Zach Bristow 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.

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