Category: Stock Market

ASX retail shares recovered strongly from the COVID-19 market downturn as sales accelerated over 2020.

Major retailers such as JB Hi-Fi Limited (ASX: JBH) and Wesfarmers Ltd (ASX: WES) have reported significant increases in sales in FY21.

Online retailers such as Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW) have benefited from the shift to online shopping occurring as a result of the pandemic. This was reflected in FY21 results, but investors are now looking to the future.

The August reporting season revealed not only FY21 performance but gave some insight into how retail shares will perform as we cycle out of pandemic restrictions. 

How have ASX retail shares performed against the market?

After a strong recovery from the 2020 coronavirus-driven downturn, ASX retail shares have had a mixed performance over 2021.

The Wesfarmers share price is up 12% year to date, marginally underperforming the All Ordinaries Index (ASX: XAO), which is 12.5% higher. Shares in Temple & Webster have gained 11.3% in 2021. However, the JB Hi-Fi share price is down 8%, while the Kogan share price has fallen a massive 45.7% in 2021. 

Who are the retail winners this earnings season? 

JB Hi-Fi delivered a winning 67.4% increase in profits, which reached $506 million. The electronics retailer reported sales of $8.9 billion for FY21, a 12.6% increase on FY20.

The company reported strong sales momentum through the year, with heightened customer demand for electronics and home appliances. It has continued to invest in its online and digital offerings, which have paid off — online sales were up 78.1% to $1.1 billion in FY21.

JB Hi Fi’s earnings grew 53.8% to $743.1 million, with earnings per share (EPS) up 67.5% to 440.8 cents per share. A final dividend of 107 cents per share was declared, bringing total FY21 dividends to 287 cents per share, a 51.9% increase on FY20. 

Online furniture and homewares retailer Temple & Webster also reported record revenue, profit, and customers in FY21.

Full-year revenue increased 85% on the previous year to $326.3 million. Profit grew 165% to $14 million. Active customer numbers were up 62% year on year to 778k, with the pandemic accelerating the shift from offline to online that was already in progress.

Temple & Webster is focused on expanding its digital capabilities, including data personalisation and the use of artificial intelligence. The company is pursuing a high growth strategy in the short to mid-term, while the plan longer term is to leverage scale and grow profits in the longer term. 

Retail sector behemoth Wesfarmers also performed strongly in FY21, with profits up 16.2% to $2,421 million. Bunnings, Kmart, and Officeworks delivered strong sales and increased earnings, leading to an 18.8% increase in Wesfarmers’ earnings before interest and tax (EBIT).

The company said COVID-19 continued to impact operations, but government stimulus measures have had a positive impact on sales during the year. Wesfarmers declared a final dividend of 90 cents per share, fully franked, bringing full-year dividends to 178 cents a share. This is 17.1% above last year’s dividends of 152 cents. 

Wesfarmers warned that Bunnings, Officeworks, and Catch experienced moderating sales growth from mid-March as they began to cycle the strong demand experienced in the prior year.

The retailer said volatility in customer traffic resulting from lockdowns was also impacting sales growth. Disruptions and capacity constraints in global supply chains led to some inventory delays and higher freight costs.

Wesfarmers will adjust inventory management practices to mitigate the impact of supply chain disruptions on stock availability. Nonetheless, the board has also recommended a return of capital of 200 cents per share, subject to shareholder approval. If approved, distributions of approximately $2,268 million will be paid in December. 

And the losers? 

Kogan surpassed $1 billion in sales for the first time in FY21, but investors sent the Kogan share price tumbling when results were released.

The Kogan share price fell more than 15% in a day, even as the online retailer reported 52.7% growth in sales. Total sales were $1.179 billion, providing a compound annual growth rate of 46.2% since FY19. But this was not translated into profits, with net profit after tax (NPAT) of $3.5 million, well down from $26.8 million in FY20.

Profits were impacted by a write-down of PPE held by Kogan and additional logistics costs incurred due to warehousing and supply chain disruptions. The board has hit a pause on dividends to conserve cash for business investment and growth opportunities but says it has a strong balance sheet that supports planned growth initiatives. 

What is the outlook for ASX retail shares?

Consistent with previous years, Kogan has refrained from providing earnings guidance for FY22 but committed to providing regular updates throughout the year.

July 2021 sales were 5.1% above July 2020 sales based on unaudited management accounts. Kogan’s earnings for the month were $2.1 million, reflecting high operating costs that the company says are progressively reducing. 

Wesfarmers has noted earnings in its retail divisions during the first half of FY22 may be below the prior corresponding period due to the impact of continued trading restrictions. It anticipates that ongoing disruptions to supply chains and global supply constraints will create additional costs and impact stock availability in some categories.

JB Hi-Fi has also experienced some disruption and variability to sales due to shifting COVID restrictions. Australian sales for 1 July 2021 to 15 August 2021 were down on the equivalent period in FY21, although up on FY20. The retailer has declined to provide sales and earnings guidance in light of the ongoing uncertainty arising from COVID-19. 

Temple & Webster has reported a strong start to FY22, with sales up 49% on last year. The company says it is continuing to experience strong tailwinds, including the ongoing shift to online shopping and increased discretionary income due to travel restrictions.

Temple & Webster plans to continue to invest in growth areas of the business with the ultimate goal of becoming the largest retailer (online or offline) for furniture and homewares in its home market. 

The post How have ASX retail shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

More reading

• The Temple & Webster (ASX:TPW) share price is having a bad week but is up 3% today
• Own Wesfarmers (ASX:WES) shares? Then you’re invested in lithium
• Woolworths (ASX:WOW) share price on watch after its big green promise
• How does the Wesfarmers (ASX:WES) dividend compare to its sector?
• 2 buy and hold ASX shares that could help grow your wealth

Motley Fool contributor Katherine O’Brien 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 and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Wesfarmers Limited. The Motley Fool Australia has recommended Temple & Webster Group 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/3hbVT27

The Endeavour Group Ltd (ASX: EDV) share price is slipping following the release of the company’s earnings for financial year 2021 (FY21).

Right now, the Endeavour share price is $6.61, 1.34% lower than its previous close.

Endeavour share price slumps despite seemingly strong FY21

Here’s the liquor retailer and hotel operator’s key performance metrics for FY21:

• $11.6 billion of revenue, up 9.3% on that of FY20
• After tax profit of $445 million
• $899 million of earnings before interest and tax (EBIT) up 22% on that of the prior financial year
• 7 cent final dividend, representing a 71% payout ratio

The company’s retail EBIT increased 17.6% to $669 million. While its hotels business’ EBIT reached $261 million, a 49.1% increase on that of FY20. Of course, FY20 saw a relatively long period of COVID-19 closures.

Over the course of FY21, 8.4% of the group’s retail sales came from its online store.

Endeavour also reinvested more than $300 million into its business, opening 33 new Dan Murphy’s and BWS stores and upgrading 64 stores. It also acquired 5 hotels, renewed 26, and upgraded more than 500 electronic gaming machines across its network.

As of 28 June 2021, Endeavour has $1.7 billion in borrowings from Woolworths Group Ltd (ASX: WOW), net debt of $1.3 billion, $625 million of undrawn debt facilities, and $437 million of cash.

What happened in FY21 for Endeavour?

It has been a big year for Endeavour and its share price.

Perhaps the biggest news from the company was its demerger from Woolworths.

Endevaour demerged from Woolworths in June 2021 with a market capitalisation of $10.8 billion.

The company also achieved 35% growth from online sales and released around 530 new Pinnacle Drinks products in FY21.

The number of active monthly users of BWS and Dan Murphy’s apps also increased 86%.

The company saw its hotels closed for 169 days during FY21. Additionally, 83 of its stores were closed as COVID-19 exposure sites.

What did management say?

Endeavour’s managing director Steve Donohue, and chair and CEO Peter R. Hearl, issued a joint statement commenting on the financial year that’s been for Endeavour and its share price. They said:

The 2021 financial year has been an eventful year for the Group characterised by both a demerger and navigating the significant impacts of COVID-19…

While the demerger has not altered the fact that Endeavour is the leading retail drinks and hotels business in Australia, it has enabled us to refocus on where we want to head in the future.

What’s next for Endeavour?

Those interested in the Endeavour share price might want to keep an eye out for these happenings:

According to Endeavour, it will be chasing a “significant number” of value-investing opportunities in FY22.

These could include growing its digital engagement, new retail stores, acquiring and upgrading hotels, and focusing on its costs and capital management.

However, due to the ongoing COVID-19 outbreaks in Victoria and New South Wales, the company has declined to forecast how it will perform over FY22.

Endeavour share price snapshot

The Endeavour share price has performed well during its short time on the ASX.

Since it listed, it has gained 9.8%.

At its current share price, the company has a market capitalisation of around $11.8 billion.

The post Endeavour (ASX:EDV) share price slips despite $445 million profit appeared first on The Motley Fool Australia.

More reading

• ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares on Tuesday
• Endeavour (ASX:EDV) share price down 2% after maiden FY21 results announcement
• The Endeavour (ASX:EDV) share price has broken its record – again!

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/3BXnMmv

Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, I have picked out three ASX dividend shares brokers think investors should buy:

APA Group (ASX: APA)

According to a note out of Ord Minnett, its analysts have upgraded this utilities company’s shares to a buy rating with a $10.75 price target. The broker is positive on the company for a number of reasons. This includes its attractive valuation, strong free cash flow generation, and growth opportunities. It also expects generous dividend yields in the coming years. Ord Minnett has pencilled in dividends per share of 53 cents in FY 2022 and then 54 cents in FY 2023. Based on the current APA share price of $9.30, this will mean yields of 5.7% and 5.8%, respectively.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target on this mining giant’s shares to $25.00. Although Macquarie acknowledges that iron ore prices are falling, the broker believes Fortescue can still maintain a double digit free cash flow yield. This is due to its reducing capex offsetting iron ore price declines. The broker expects this strong free cash flow to support further big dividend payments in the near term. Macquarie is forecasting dividends per share of $2.45 in FY 2022 and $1.63 in FY 2023. Based on the current Fortescue share price of $17.92, this represents massive fully franked yields of 13.7% and 9.1%, respectively.

Sonic Healthcare Limited (ASX: SHL)

Analysts at Credit Suisse have retained their outperform rating and lifted the price target on this healthcare company’s shares to $46.50. According to the note, the broker expects Sonic to benefit from higher than expected COVID-19 testing volumes for a little while to come. It also believes that reimbursement rates for testing are unlikely to be cut given how there is an election due next year. All in all, the broker expects this to underpin strong earnings and dividends. Credit Suisse has forecast partially franked dividends per share of 97.4 cents in FY 2022 and 102 cents in FY 2023. Based on the current Sonic share price of $41.75, this will mean yields of 2.3% and 2.5%, respectively.

The post Top brokers name 3 ASX dividend shares to buy today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Tech shares fall, Fortescue upgraded
• 2 ASX shares that could be buys for both growth and dividends
• Why this leading broker’s clients have been going nuts for Fortescue (ASX:FMG) shares
• Top brokers name 3 ASX shares to buy today
• Leading broker reveals why these 10 big-name shares have been firing up its clients

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 owns shares of and has recommended APA Group. The Motley Fool Australia has recommended Sonic Healthcare Limited. 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/2YG0Hqn

The Peninsula Energy Ltd (ASX: PEN) share price has surged 70% since late August, briefly hitting a 2-year high of 23 cents on Monday.

Shares in the uranium explorer are currently changing hands for 21 cents.

Peninsula Energy operates the Lance Uranium project in Wyoming, United States. The company aims to fast-track the Lance project into production. It is currently focused on transitioning the project from alkaline to low pH extraction methods.

Peninsula Energy share price booms on uranium highs

Over the last week, uranium prices have shot up to 6-year highs of about US$35/lb, according to Cameco.

A major catalyst behind the sudden jump in uranium prices is the Sprott Physical Uranium Trust, the world’s largest actively managed uranium fund that invests in physical uranium.

According to Sprott’s Twitter, the fund has been aggressively buying uranium off the spot market, adding 3.45 million pounds of physical uranium in September alone.

Analysts at Kitco have pointed to the Sprott Uranium Trust as a “critical factor behind the recent push in the energy metal’s price”.

The uplift in uranium prices has helped bring life back to the Peninsula Energy share price and the broad uranium sector.

How does this impact Peninsula?

Peninsula Energy is in a unique position given its current uranium holdings and sales contract book.

Back in May, the company successfully completed a $15 million capital raise to fund the purchase of 300,000 pounds of uranium at a price of US$31.35 per pound.

The board believed that “holding uranium during a period when there is a focused and continued drive by the United States Government to support and revitalise the domestic uranium industry, is a low-risk strategy that has the potential to deliver considerable upside value for shareholders”.

It looks like management was on the money, given the recent jump in uranium spot prices.

In addition, Peninsula Energy has a number of long-term sales contracts in place, extending to 2030.

This includes contracts in place for up to 5.5 million pounds at US$51-53/lb with major utilities in both the United States and Europe.

Peninsula Energy share price snapshot

It’s been a good year for Peninsula Energy shares, which are up around 72% in 2021 so far. They have also gained more than 190% over the past 12 months.

The post Peninsula Energy (ASX:PEN) share price jumps to 2-year highs appeared first on The Motley Fool Australia.

More reading

• Guess which sector last week’s top performing ASX shares come from
• ASX uranium shares are booming this week. Here’s why.

Motley Fool contributor Kerry Sun 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/3E24cYr

The Novonix Ltd (ASX: NVX) share price is continuing its upward trajectory this week, despite no news from the company.

While Novonix itself has been quiet, it did pass an exciting milestone last week when it entered the S&P/ASX 300 Index (ASX: XKO).

Additionally, the rising price of lithium could also be sending the lithium-ion battery company’s shares skyward.

Right now, the Novonix share price is $5.53, up 1.8% today and 11% higher than it was at the start of this week.

However, earlier today the company’s shares were trading for a whopping $6.10. That represents a 12.3% gain on yesterday’s close and a new record high.

Let’s take a look at what’s boosting Novonix higher on the ASX.

What’s driving Novonix?

Novonix is having a great week despite the company’s silence.

The market handed a new crown to Novonix last Friday. The S&P Dow Jones Indices’ quarterly rebalance saw Novonix boosted into the S&P/ASX 300 Index.

Novonix was one of 13 new faces on the index, as struggling former favourites such as Bubs Australia Ltd (ASX: BUB) and Humm Group Ltd (ASX: HUM) were shown the door.

Although the news was likely exciting for shareholders, the Novonix share price didn’t take off until yesterday.

The other factor that might be driving Novonix’s recent gains is the increasing price of lithium.

S&P Global Platts reported lithium carbonate reached its highest price ever yesterday, supported by the demand to use the product as feedstock, alongside spodumene.  

Additionally, the price of lithium hydroxide is also increasing, potentially pulling the Novonix share price up with it.

Novonix share price snapshot

This week’s gains included, Novonix has been performing exceptionally well, lately. Its shares are up 346% year to date. It has also gained 197% over the past 12 months.

The post Novonix (ASX:NVX) share price surges again to record high, up 11% this week appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are making headlines on Thursday?
• Anson (ASX:ASN) share price leaps 19% on Novonix test results
• Why Novonix, ResMed, Senex, & Weebit Nano shares are charging higher
• Which ASX shares are making a move on the ASX 300?
• Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher

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 BUBS AUST FPO and Humm Group Limited. 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/2YFXCXl

If you don’t have sufficient funds to build a diverse portfolio, then exchange traded funds (ETFs) could be a quick fix.

The reason for this is that ETFs give investors access to a large number of different shares through a solitary investment. This allows you to spread your funds far wider than you would if you were buying individual shares.

With that in mind, I have picked out three ETFs that trade on the ASX that could be good options. Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you’re interested in the US tech sector, then the BetaShares NASDAQ 100 ETF could be one to consider. This ETF provides exposure to the 100 largest non-financial shares on the NASDAQ index. Among the 100 shares included in the fund are household names such as Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another ETF for investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to companies involved in the growing video gaming market. Among the shares included in the fund are hardware giant Nvidia and game developers Take-Two and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to a massive 1,505 of the world’s largest listed companies from major developed countries. This arguably makes it as diverse as it gets for investors. Among the companies you’ll be buying a slice of are Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa. Vanguard notes that this allows investors to participate in the long-term growth potential of international economies outside Australia. It also offers a modest dividend yield of ~1.6%.

The post 3 top quality ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs for ASX investors this week
• 2 top ETFs that might be buys in September 2021
• 3 high quality ETFs for ASX investors in September
• A2 Milk and Zip were among the most traded ASX shares last week
• 2 ETFs for strong diversification in September 2021

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and Vanguard MSCI Index International Shares ETF. 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/2VrGROd

The Dicker Data Ltd (ASX: DDR) share price is again in negative territory today following two weeks of significant losses. 

The dramatic fall in the company’s shares follows the IT distributor’s announcement of director transactions.

At the time of writing, Dicker Data shares adding to its woes, are down a further 2.09% to $13.10. This means that since 26 August, the company’s share price has fallen 21%.

Why is Dicker Data shares coming under pressure?

Investors are continuing to head for the hills, selling Dicker Data shares after a worrying market update on 27 August.

According to its release, the company revealed that its chair and CEO, David Dicker sold a portion of his shares.

The news didn’t go down well with investors, sending the Dicker Data share price down 9% on the day.

Mr Dicker offloaded a total of 2.74 million shares in an on-market trade at a price of $15.40 per share. The company advised that the sale was in relation to meet “personal projects” by the chair and CEO.

The transaction represented roughly 1.6% of Dicker Data’s share registry and reduced Mr Dicker’s entire holding to about 33.6%.

To appease shareholders, the company said that Mr Dicker entered into a lock-up arrangement on his remaining shares until the end of 2021.

However, taking advantage of the share price weakness, a number of directors took the opportunity to top up their holdings. While it was nowhere near the amount transacted by Mr Dicker, the company’s share rose 5% on the update.

Unfortunately, since the 2 September buying, Dicker Data shares have given back those gains.

Dicker Data share price summary

Over the past 12 months, Dicker Data shares have accelerated by almost 80%, with year-to-date above 25%. The company’s share price reached an all-time high of $16.60 following the release of its interim results for FY21.

Based on today’s price, Dicker Data commands a market capitalisation of around $2.27 billion, with 172.8 million shares on issue.

The post Dicker Data (ASX:DDR) share price continues to slide, down 21% since late August appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are set to finish the week as the top movers on the ASX 300?
• Here are the top 10 ASX 200 shares on Thursday
• Why Altium, Catapult, Dicker Data, & PolyNovo shares are charging higher
• Dicker Data (ASX:DDR) share price surges 5% as directors buy the dip
• Which ASX 300 shares are the biggest winners and losers on Thursday?

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 shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. 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/2XbUiTc

The IOUpay Ltd (ASX: IOU) share price is climbing higher after the ASX fintech company emerged from yesterday’s trading halt.

After initially rocketing 22%, the IOUpay share price has given back some of those gains and is currently up 3.23% to 32 cents per share.

Below we look at the company’s acquisition announcement that looks to be driving investor interest.

What acquisition announcement did the company make?

The IOUpay share price is gaining today after the company reported it is acquiring a 42% stake in I.Destinasi Sdn Bhd (IDSB).

IDSB provides long-term installment-based consumer credit services in Malaysia.

IOUpay said IDSB is a complementary business “with prospective collaboration opportunities for cross-selling” between its short-term buy now, pay later offerings (which run up to 6 months) and IDSB’s longer-term consumer loan products, which run up to 10 years.

According to the release, IDSB “holds a unique and highly valuable AG Code2 licence”. This provides it with a significant competitive advantage in Malaysia consumer credit market. There are only 2 companies holding an AG Code2 licence in the country.

IOUpay will pay RM126 million (AU$41.3 million) for its 42% stake in 2 tranches over a 6-month period. It said that price won’t be increased “if IDSB outperforms an audited profit before tax” for the 2021 financial year.

On the other hand, the purchase price could be decreased if the profit before tax is less than RM30 million (AU$9.8 million) for FY21.

IOUpay will fund the acquisition with a 50% upfront cash consideration from its current cash holdings. The remaining 50% is scheduled to be paid in 6 months. The company said it will assess the appropriate payment method closer to that time.

IOUpay share price snapshot

Over the past 12 months, the IOUpay share price has rocketed 550%. This far outpaces the 27% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.

IOUpay’s shares are up 30% over the last month.

The post Why the IOUpay (ASX:IOU) share price is leaping higher appeared first on The Motley Fool Australia.

More reading

• IOUPay (ASX:IOU) share price soars 10% on news of BNPL offering

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/3jXOaH3

The Epsilon Healthcare Ltd (ASX:EPN) share price is rocketing today, up more than 16% to 18 cents per share.

The company entered a trading halt on Monday before the market open pending today’s announcement. Epsilon’s share price closed at 15 cents on Friday.

We take a look at the announcement from the microcap ASX cannabis share.

What did Epsilon announce?

The Epsilon share price is soaring after the company reported it has entered into a partnership with The Valens Company Inc (TSX: VLNS) for access to Epsilon’s Southport Manufacturing Facility.

Valens is involved in the production of cannabis products. Its shares currently trade on the Toronto Stock Exchange, and it has applied to list on the NASDAQ.

The partnership with Epsilon will aid Valens’ growth strategy into international GMP markets via access to Epsilon’s GMP manufacturing capability at the Southport Facility. Southport is the largest cannabis extraction facility in the Southern Hemisphere.

Epsilon has been granted a licence to use Valens IP to streamline operations at its Southport Facility. Valens will also provide personnel and support.

As part of the partnership, Valens won’t sell any medicinal cannabis in Australia or New Zealand that doesn’t come from the Southport Facility. Valens will also “fund all future operational and capital expenditure” at the facility in return for access to up to 85% of the output.

What else is moving the Epsilon share price?

Epsilon’s share price may also be getting a lift today from the company’s accompanying announcement that it has entered into a Share Sale Agreement with Cannvalate Pty Ltd to acquire AlternaMed Pty Ltd. This includes Cannvalate’s portfolio of IP covering 3 “novel cannabinoid therapeutic agents with a view to Schedule 3 medicines production”.

Epsilon will issue some 28 million shares, worth $4.3 million at 15 cents per share, to acquire AlternaMed. The acquisition remains subject to customary approvals.

Commenting on the announcements, Valens’ CEO, Tyler Robson said:

We are excited to work with the largest and most advanced cannabis manufacturing facility in the Southern Hemisphere to distribute GMP products, and look forward to advancing our product distribution capabilities through our continued partnership with Cannvalate.

Epsilon’s CEO, Jarrod White, added:

Having worked with the teams at Valens and Cannvalate over the preceding months to achieve what is a transformational partnership for Epsilon and its Southport Facility, I am excited to see the maturing of Epsilon’s core assets and business into commercial production with experienced partners from established markets.

With this long term strategic partnership now agreed, Epsilon is well placed to be a leading contract GMP manufacturer of medicinal cannabis medicines in the region.

Epsilon share price snapshot

The Epsilon share price is down 30% year-to-date. This compares to a gain of 10.5% posted by the All Ordinaries Index (ASX: XAO) in 2021.

Over the past month, Epsilon’s share price is up 16%.

The post Why the Epsilon (ASX:EPN) share price is soaring 16% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Tech shares fall, Fortescue upgraded
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 falls, Macquarie jumps, Aussie Broadband climbs
• Here are the 3 heaviest trading ASX 200 shares today
• Here are the top 10 ASX 200 shares on Wednesday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Valens GroWorks Corp. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Valens GroWorks. 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/3nfjmmV

Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Lendlease Group (ASX: LLC)

According to a note out of Morgan Stanley, its analysts have downgraded this engineering company’s shares to an underweight rating and reduced the price target on them to $11.40. The broker has concerns over whether Lendlease’s longer term production targets are sustainable and sees limited upside in the near term. The Lendlease share price is trading at $11.26 today.

Macquarie Group Ltd (ASX: MQG)

A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this investment bank’s shares to $153.00. This follows the release of a decent trading update this week which revealed that a better than expected performance is being forecast by management. However, the broker holds firm with its sell rating on valuation grounds. It feels the company’s shares are expensive at the current level. The Macquarie share price is fetching $177.34 on Thursday.

Pro Medicus Limited (ASX: PME)

Analysts at Goldman Sachs have downgraded this health imaging technology company’s shares to a sell rating with a slightly reduced price target of $54.00. According to the note, the broker was pleased with Pro Medicus’ performance in FY 2021. And although it believes the company is well-placed to continue its strong growth, it feels its valuation is getting stretched. Goldman notes there is insufficient visibility to justify a 63x forward sales multiple. The Pro Medicus share price is trading at $58.50.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• The Macquarie (ASX:MQG) share price has gained 3 times that of CBA over 5 years
• ASX 200 (ASX:XJO) midday update: Tech shares fall, Fortescue upgraded
• Top broker gives its verdict on the Macquarie (ASX:MQG) share price
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 falls, Macquarie jumps, Aussie Broadband climbs

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 Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Pro Medicus 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/3BZ31al