Category: Stock Market

At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. The benchmark index is up 0.15% to 7,473.1 points.

Here’s what is happening on the ASX 200 today:

Sonic Healthcare full year results fall short of lofty expectations

The Sonic Healthcare Limited (ASX: SHL) share price is tumbling lower following the release of its full year results. For the 12 months ended 30 June, Sonic Healthcare delivered a 28% increase in revenue to $8.8 billion and a 149% lift in net profit to $1.3 billion. This was driven largely by strong demand for COVID-19 testing services. As strong as this result was, it fell a touch short of the market’s expectations. Goldman Sachs was forecasting revenue of $9,352 million and net profit of $1,327 million.

NIB shares sink on full year results

The NIB Holdings Limited (ASX: NHF) share price is falling heavily today after its full year results fell short of expectations. NIB reported a 2.9% increase in revenue to $2.6 billion and an 84.5% lift in net profit after tax to $160.5 million. A note out of Goldman Sachs reveals that it was expecting the private health insurer to report a 92.2% increase in net profit after tax to $171.4 million.

Ampol half year update and acquisition news

The Ampol Ltd (ASX: ALD) share price is falling following the announcement of its half year results and a major acquisition. Although the fuel retailer delivered strong first half profit growth, its outlook appears to have spooked investors. Management warned that lockdowns were impacting fuel and convenience sales in July and August. Ampol also revealed that it has made a non-binding indicative proposal to acquire Z Energy Ltd (ASX: ZEL) for NZ$3.78 cash per share. This values Z Energy’s equity at NZ$2 billion.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Nearmap Ltd (ASX: NEA) share price with an 8% gain. This is despite there being no news out of the aerial imagery technology and location data company since its full year results last Wednesday. The worst performer on the ASX 200 has been the NIB share price with a 10% decline. This follows the release of its full year results.

The post ASX 200 midday update: NIB sinks and Sonic falls on full year results appeared first on The Motley Fool Australia.

More reading

• NIB (ASX:NHF) share price sinks 11% despite profit surge
• Ampol (ASX:ALD) share price sinks on half year results and acquisition news
• Sonic Healthcare (ASX:SHL) share price on watch after 149% profit boost in FY21
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• 5 things to watch on the ASX 200 on Monday

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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended NIB Holdings Limited and 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/3y3mZhK

The MetalsTech Ltd (ASX: MTC) share price is rallying in late morning trade following a positive move by its directors.

At the time of writing, the gold explorer’s shares are up 15.38% to 23 cents. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.1% to 7,734 points.

What happened?

According to its release, MetalsTech advised that between 17 August and 20 August, a number of directors bought more shares in the company.

Geosmart Consulting, an entity in which MetalsTech director Dr Qingtao Zeng is also a director, purchased 75,000 shares on-market. This is for a total cash consideration of $15,000. In addition, Dr Zeng picked up another 50,000 shares for $10,000 to add to his own personal holding.

Natres Services, an entity of which MetalsTech chair Russell Moran is a director, bought 228,803 shares on market. The value of this purchase is for a total amount of $44,867.

And lastly, Internatzionale Trust, an entity of which MetalsTech director Gino D’Anna is a director, obtained 40,000 shares on market for $7,830.

No doubt, the latest purchases from each of the directors has transformed into positive sentiment for investors. Traditionally, when a company’s owners or directors take part in buying more shares, it is a sign of good things to come.

MetalsTech chair, Russell Moran commented:

MetalsTech is well funded having received $6.7 million in cash from Lithium Royalty Corp in July and drilling is expected to commence imminently at the 1.5Moz Sturec Gold Mine. The company is not in a ‘blackout period’ under its securities trading policy so the board and its related parties were happy to capitalise on the opportunity to purchase more MTC shares.

About the MetalsTech share price

Over the last 12 months, MetalsTech shares have gained around 7%, with year-to-date up almost 10%. The company’s share price hit a 52-week high of 34.5 cents in early June, before treading lower due to profit-taking.

Based on today’s price, MetalsTech presides a market capitalisation of roughly $35.7 million, with 158 million shares on its registry.

The post Why the MetalsTech (ASX:MTC) share price is soaring 15% today appeared first on The Motley Fool Australia.

More reading

• IGO (ASX:IGO) share price climbs on lithium production update
• The Latitude (ASX:LFS) share price falling today despite profit boost
• Spark Infrastructure (ASX:SKI) share price jumps after takeover update
• What’s with the Huon (ASX:HUO) share price today?
• The Telstra (ASX:TLS) share price has gained 23% in the last 6 months

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. 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/3sDZjPL

The IGO Ltd (ASX: IGO) share price has jumped out of the starting blocks from the opening of trade on Monday.

IGO shares are on the move as the mining company released an announcement before the open.

Let’s investigate further.

What did IGO announce?

IGO advised that its Kwinana lithium hydroxide refinery has “produced its fist lithium hydroxide chemical product”.

Recall that IGO owns a 49% interest in Kwinana through an “incorporated joint venture (JV)” with Tianqi Lithium Corporation.

The JV also grants IGO exposure to the Greenbushes mine, “the largest, highest-grade lithium mine in the world” as per the announcement. This exposure comes in the form of a 25% “indirect interest” in the mine.

Moreover, with the “first lithium hydroxide production now demonstrated”, IGO intends to turn its first production train (Train 1) “on a continuous, rather than batch basis”.

IGO expects the “saleable product” will be produced by the back end of 2021. Further, it expects “battery-grade production for accreditation by customers” will be ready by the “March 2022 quarter”, as per the company.

Furthermore, the commissioning of Train 1 “has progressed at a pace over recent months”. The commissioning program sees each of the “individual unit processes” sequentially commissioned.

Train 1 is expected to “progressively ramp up” to the design production rate of “24kpta lithium hydroxide by the end of 2022”.

Investors have pushed the IGO share price higher on the back of this news.

IGO shares are now exchanging hands at $9.23 apiece, a 4.77% jump into the green from the open.

What did management say?

IGO managing director and CEO Peter Bradford said:

We are therefore delighted to have achieved this first important step in the commissioning of Train 1 and to have done so ahead of the internal schedule developed earlier this year. We congratulate the Kwinana team on this milestone and their progress over the last few months.

Bradford also added:

The strong demand being witnessed in the lithium market globally reinforces the strategic nature of Kwinana which, together with the Lithium JV’s interest in the Greenbushes mine, is rapidly evolving into a globally significant, integrated lithium operation catering to the specific needs of premium lithium-ion battery manufacturers.

IGO share price snapshot

The IGO share price has climbed 43% into the green since January 1, extending the previous 12 months’ gain of 105%.

Despite this, IGO shares are 7.5% in the red over the past week.

Both of these returns have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.

The post IGO (ASX:IGO) share price climbs on lithium production update appeared first on The Motley Fool Australia.

More reading

• Can the Western Areas (ASX:WSA) takeover prompt BHP (ASX:BHP) to go nickel shopping?
• ASX 200 drops, Redbubble soars, TWE falls
• Why BHP, Codan, IGO, & Origin shares are dropping
• Why the IGO (ASX:IGO) share price is sliding 8% today
• Western Areas (ASX:WSA) share price rockets 18% on IGO takeover interest

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.

from The Motley Fool Australia https://ift.tt/2WaJ558

The Latitude Group Holdings Ltd (ASX: LFS) share price is sinking in late morning trade, down 1.3% to $2.30 per share.

Below we take a look at the financial services company’s half year financial results for the period ending 30 June 2021.

The Latitude share price drops on half year results

• Statutory net profit after tax (NPAT) of $89.5 million, up 524% from the previous corresponding period (PCP)
• Cash NPAT of $121 million, up 81% from the PCP
• Volumes of $3.6 billion, up 5% on the PCP
• Return on equity (ROE) of 19.1%, and a return on tangible equity (ROTE) of 54.4%
• Dividend of 7.85 cents per share ($78.5 million)

What happened during the reporting period for Latitude?

During the half year, Latitude reported total volume – excluding its travel and international category, which was impacted by COVID-19 – increased by 11% compared to the PCP.

Personal and auto loans were a standout performer, increasing 37% on the PCP, with 35% growth in Australia and 46% growth in New Zealand.

The company’s buy now, pay later (BNPL) offering also saw strong growth, with a 73% increase in the LatitudePay customer base on PCP, and the company reporting 458,000 open accounts.

The half year also saw Latitude settle the refinancing of its $1.04 billion Australian Personal Loans Warehouse Facility. It established a new $1.06 billion Australia and New Zealand Sales Finance and Credit Cards Warehouse to replace a prior cards warehouse facility.

What did management say?

Commenting on the half year results, Latitude’s CEO Ahmed Fahour said:

This is a strong result that delivers cash NPAT just above the top end of guidance of $120 million for 1H21. The 37% volume growth in our personal and auto lending business across both Australia and New Zealand was particularly pleasing. Latitude is now the number two originator of new personal loans in Australia and one of the leaders in New Zealand…

Latitude is entering the 2H21 with a number of opportunities to grow our core instalments and lending businesses, as demonstrated by the acquisition of Symple Loans. We are accelerating our big ticket BNPL offer LatitudePay+, which allows LatitudePay customers to make purchases of up to $10,000, we have relaunched our insurance product and are well advanced in our plans for Asia.

What’s next for Latitude?

Looking ahead, Latitude cautioned that new rounds of COVID lockdowns in Australia and New Zealand are slowing economic activity at the moment. But the company expects this to bounce back rapidly after restrictions ease.

It pointed to the 43% increase in its volumes (compared to the average over the previous 3 months) in Victoria in November 2020, when the state eased restrictions.

Latitude’s directors indicated that the second half dividend for 2021 will remain at 7.85 cents, and they expect it to be fully franked.

The Latitude share price is down 15% since 20 April.

The post The Latitude (ASX:LFS) share price falling today despite profit boost appeared first on The Motley Fool Australia.

More reading

• Here are the 10 top moving ASX shares on Monday
• Why Family Zone, IAG, Latitude, & Suncorp shares are charging higher
• Latitude (ASX:LFS) share price rises on $200m Symple acquisition

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/2WdvaL5

The Spark Infrastructure Group (ASX: SKI) share price has stepped into the green after the opening of trade on Monday.

Spark shares are on the move after the infrastructure company made a key announcement before the open.

Let’s peel back the layers and uncover what was in the announcement.

What did Spark Infrastructure announce?

Spark advised it has entered into a “scheme implementation deed” with a consortium of investors. The scheme is to “acquire all of the units” in the Spark Infrastructure trust.

The consortium involves Kohlberg Kravis Roberts & Co (KKR & Co), the Ontario Teachers’ Pension Plan, and Public Sector Pension Investments, as per the release.

In addition, the offer of $2.95 per stapled security, values Spark at an “equity value of $5.2 billion,” thereby giving an enterprise value (EV) of $10.1 billion.

Moreover, Spark shareholders will received the $2.95 per security “before franking credits”. This may be combined with “additional consideration” if the scheme hasn’t been implemented by 15 February 2022.

This consideration sees Spark security holders “entitled to a cash consideration” of 1 cent per share on 15 February, and “approximately 1 cents per share thereafter, calculated daily” until the actual implementation.

Furthermore, Spark provided a breakdown of the $2.95 per stapled security price point in the announcement. To illustrate, the $2.95 figure comprises:

• A cash offer of $2.7675 per share from the consortium
• A distribution of 6.25 cents per share for 2021 interim payment
• A franked “special distribution” expected to be around 12 cents per share

Investors can expect their dividend “franked to the fullest extent possible”. This gives Spark security holders “an additional benefit of approximately 5 cents per share”.

The scheme is subject to shareholder approval in meetings pencilled in for the end of 2021.

Spark’s board of directors “unanimously recommends” that security holders vote in favour of the scheme.

Investors have favoured the news, driving the Spark Infrastructure share price higher in early trade.

To illustrate, Spark shares are now exchanging hands at $2.84, a 2.53% jump from the open.

What did management say?

Spark Infrastructure chair Doug McTaggart said:

The Spark Infrastructure Board unanimously recommends Securityholders vote in favour of the Schemes in the absence of a superior proposal and subject to the independent expert concluding and continuing to conclude that the Schemes are in the best interests of Spark Infrastructure securityholders.

Morevoer, Spark managing director Rick Francis added:

Spark Infrastructure’s businesses will continue to play a critical role in the transformation of Australia’s energy sector. The investments we have made in distribution, transmission and renewables put Spark Infrastructure front and centre of Australia’s low-emissions energy future. We are pleased this has been recognised in the Scheme consideration agreed with the Consortium.

Spark Infrastructure share price snapshot

Spark shares have gained 30% over the past year. This has been helped by the Spark Infrastructure share price rising 34% year to date.

These results have outpaced the S&P/ASX 200 Index (ASX: XJO) return of around 25% over the past year.

The post Spark Infrastructure (ASX:SKI) share price jumps after takeover update appeared first on The Motley Fool Australia.

More reading

• Why climate risks is a bigger threat to ASX 200 shares than you thought
• ASX 200 drops, Spark jumps, Nickel Mines sinks
• Why Eagers Automotive, Life360, Spark, & Virgin Money UK are pushing higher
• ASX 200 midday update: Spark takeover, Virgin Money update
• Why the Spark Infrastructure (ASX:SKI) share price hit a new 52-week high

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/3mwqafw

The Huon Aquaculture Group Ltd (ASX: HUO) share price is flat on Monday morning. This comes after the salmon producer provided an update on the JBS takeover bid of all Huon shares.

At the time of writing, the Huon share price is trading at its previous closing price of $3.82 apiece. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.2% to 7,737 points.

What did Huon announce?

Huon chair Neil Kearney advised today that Tattarang Agrifood has indicated it may not support the JBS proposal.

Tattarang Agrifood holds an 18.5% stake in Huon and is owned by West Australian mining magnate Andrew Forrest. Forrest is also the CEO of iron ore giant, Fortescue Metals Group Limited (ASX: FMG).

In a letter to shareholders, Kearney said Forrest has questioned the animal husbandry practices of JBS and the environmental standards of Huon and the Tasmanian salmon industry.

This follows the announcement made on 6 August 2021 that Huon entered into definitive agreements with JBS. The latter offered to acquire 100% of Huon shares for a cash consideration of $3.85 per share.

Based on the last closing price of Huon shares when the strategic review process was announced (26 February 2021), this represents a 61% premium.

In the early phase of the review process, Tattarang expressed interest in Huon and submitted a non-binding and conditional indicative offer for the business. However, that fell through when Tattarang was invited to participate further in the strategic review process.

The directors of Huon stated that the JBS offer of $3.85 per share was materially higher than Tattarang’s previous non-binding and conditional indicative offer.

Huon revealed that a booklet outlining the proposal and voting details will be dispatched to shareholders within four weeks.

About the Huon share price

Up until early August when the cash proposal was announced, Huon shares were trading mostly sideways. However, since then the company’s share price rocketed almost 50% to sit around the $3.80 mark.

When looking at the last 12-month period, Huon shares have posted a gain of around 40%. In 2021 alone, its shares are up just over 20%.

Huon presides a market capitalisation of roughly $419.7 million, with approximately 109 million shares on its books.

The post What’s with the Huon (ASX:HUO) share price today? appeared first on The Motley Fool Australia.

More reading

• Can the Western Areas (ASX:WSA) takeover prompt BHP (ASX:BHP) to go nickel shopping?
• Huon (ASX:HUO) share price wobbles as Twiggy ups crusade against JBS
• Huon (ASX:HUO) share price slides as Twiggy lays down law on takeover
• Why the Tassal (ASX:TGR) share price is surging higher today
• Why the Huon (ASX:HUO) share price is rocketing 40% higher on Monday

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. 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/3gkGdcA

The Telstra Corporation Ltd (ASX: TLS) share price may be trading lower on Monday but that hasn’t stopped in from smashing the ASX 200 over the last six months.

During this time, the telco giant’s shares have gained a sizeable 23.5%.

As a comparison, the ASX 200 is up 9.3% over the same period.

Why is the Telstra share price up 23% in six months?

Investors have been driving the Telstra share price higher over the last six months largely due to optimism that a long-awaited return to growth was on the horizon.

The good news is that this optimism was not unfounded. Earlier this month, Telstra released its full year results and revealed its expectation of a solid rise in operating earnings in FY 2022.

In FY 2021, Telstra recorded underlying EBITDA of $6.7 billion. This was within the company’s guidance range of $6.6 billion to $6.9 billion.

The company is now guiding to underlying EBITDA of $7 billion to $7.3 billion in FY 2022. This represents year on year growth of 4.5% to 9%.

But it doesn’t stop there. Also giving the Telstra share price a lift was the reiteration of its underlying EBITDA aspiration of $7.5 billion to $8.5 billion in FY 2023.

This growth is expected to be driven by mobile services revenue growth, its productivity program, and the easing of the NBN headwind. The latter peaked in FY 2020, reduced in FY 2021, and will be substantially less in FY 2022.

$1.5 billion share buyback

Another catalyst for the strong Telstra share price gain was the announcement of a $1.35 billion on-market share buyback. This follows the sale of a stake in some of its infrastructure assets.

Telstra’s CEO, Andrew Penn, commented: “When we launched T22, we committed to establishing a standalone infrastructure business unit for three reasons: to give transparency of those assets, to bring a harder commercial edge to how we operationalise them, and to create optionality with a view to maximising shareholder value.”

“This share buy-back is a clear demonstration of how we are creating additional long-term value for our shareholders,” he added.

Where next for its shares?

The good news is that the team at Ord Minnett still see value in the Telstra share price.

A recent note reveals that its analysts have a buy rating and $4.40 price target on its shares.

Based on the latest Telstra share price of $3.97, this implies potential upside of 11% before dividends and almost 15% including them.

The post The Telstra (ASX:TLS) share price has gained 23% in the last 6 months appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• 2 ASX 200 dividend shares with big yields
• Here are the 3 top trading ASX 200 shares this Friday
• Telstra (ASX:TLS) share price hits 52-week high amid diversification rumours
• How does the TPG (ASX:TPG) earnings result compare to Telstra?

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 Telstra Corporation 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/3y3AspT

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

A unique ability to buy winning stocks has made Warren Buffett the sixth richest person on the planet. His past success and folksy wisdom has made him a household name and one of the most-watched investors in the world. Fortunately, following in his stock-picking footsteps doesn’t require having his phone number on speed dial. Buffett’s investment company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) files its holdings with the Securities and Exchange Commission every quarter and its latest report — released this week — reveals 76% of Berkshire Hathaway’s $293 billion (yes, billion) portfolio is invested in just five stocks in three sectors.

Buffett’s biggest position

Warren Buffett’s single biggest position — valued at a jaw-dropping $121.5 billion — is Apple (NASDAQ: AAPL).

The consumer electronics juggernaut is best known for its cutting-edge computers, smartphones, and tablets, but increasingly, it’s profiting from its services segment. Although consumer electronics products still account for the lion’s share of Apple’s sales, product revenue is highly dependent on new device launches and holiday shopping trends, making consumer electronics revenue “lumpy” throughout the year. Devices are also a relatively low-margin business.

However, Apple’s services business, which includes the app store, provides it with high-margin, recurring revenue that’s very profit- and dividend-friendly. Last quarter, services accounted for 21.5% of Apple’s total revenue, up from 16% in the same quarter of 2017. The company’s trailing-12-month net income has increased to $87 billion from less than $50 billion and its dividend payout has climbed to $0.88 per share from $0.63 per share over that period.

So far, Berkshire Hathaway’s unrealized profit on its Apple shares is nearly $90 billion, so it’s been a big winner for Buffett. Importantly, there’s little to suggest he’ll sour on Apple. Apple’s sitting on over $194 billion in cash plus marketable securities on its balance sheet and although it’s already one of the world’s biggest companies, it still delivered 36% year-over-year revenue growth in the quarter ending June 30, suggesting its products and services are still winning over consumers.

Betting on banks

Buffett has a penchant for easy-to-understand businesses, so it’s unsurprising that two of his top five largest positions are Bank of America (NYSE: BAC) and American Express (NYSE: AXP), two financial institutions with a relatively simple business model: pocketing interest on loans. He owns $41.6 billion worth of Bank of America stock and $25 billion in American Express shares exiting June, making them his second- and third-biggest positions, respectively.

Bank of America is the second-largest bank in the United States and the eighth-largest bank globally. It makes money in other ways, including via its capital markets and wealth management solutions, but most of its profit comes from charging interest on loans, including mortgages and credit cards, and fees associated with traditional banking accounts. Similarly, American Express makes money charging merchant transaction fees to retailers that accept American Express credit cards, but its main source of revenue is interest associated with small business borrowing and credit card use.

Traditionally, banks like Bank of America and American Express are most profitable when the spread between their cost to borrow and interest rates charged to customers is wide. A low interest rate environment has made it harder to maximize that spread, known as net interest margin, but Bank of America and American Express are still producing earnings for shareholders.

In 2020, Bank of America earned $1.87 per share and American Express earned $3.77 per share despite headwinds associated with a dramatic slowdown in economic activity caused by the COVID-19 shutdowns. In 2021, analysts estimate the companies’ earnings will climb to $3.26 per share and $8.81 per share, respectively, because of rebounding GDP. If so, that should provide management even more wiggle room to increase dividend payouts, providing Buffett with additional incentive to hold onto his shares.

These businesses are tasty

Sticking to his keep-it-simple investing approach, two consumer staples companies round out Warren Buffett’s five biggest holdings: Coca-Cola (NYSE: KO) and Kraft Heinz (NASDAQ: KHC).

Coca-Cola and Kraft Heinz are among the most recognizable brands in the world. Coca-Cola owes its recognition to its self-named soft drink, but it’s expanded its product lineup in recent years to benefit from evolving trends in consumer taste. For example, it insulated itself against consumers’ shift away from sugary drinks by becoming one of the biggest players in bottled and sparkling water. It even launched a hard seltzer under its popular Topo Chico brand in 2020. Berkshire Hathaway’s owned Coca-Cola shares since 1988 and it currently holds 400 million shares, making it Coca-Cola’s single largest shareholder.

Kraft Heinz was formed by the marriage of Kraft and Heinz in 2015. The combination created a food giant, but its performance has probably been bumpier than Buffett hoped. The steep price paid to merge the companies resulted in a goodwill writedown and dividend cut in 2019, and its $37 share price is down from a peak above $90 in 2017.

Nevertheless, Buffett seems committed to remaining long his 325.6 million shares. Despite cutting its dividend, Kraft Heinz still provides Berkshire Hathaway with a relatively handsome 4.3% yield, and that’s far better than the Oracle of Omaha can fetch in U.S. Treasuries.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here are Warren Buffett’s biggest stock picks appeared first on The Motley Fool Australia.

More reading

• This Buffett-inspired ASX ETF is up almost 30% in just 6 months
• Why CBA (ASX:CBA) is backing the RBA in push for payment reforms
• ASX investors were buying Robinhood, Square shares last week
• 3 Warren Buffett stocks to buy if the market crashes
• What’s moving the Commonwealth Bank (ASX:CBA) share price this week

Todd Campbell owns shares of Apple and Bank of America. Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3goy6f2

The Fenix Resources Ltd (ASX: FEX) share price surged on 13% to 30 cents within the first ten minutes of trading after the company released its unaudited FY21 results.

At the time of writing, shares in the iron ore junior are up 7.55% to 28.5 cents.

Fenix Resources share price surges on bumper profit results

At its highest point in the calendar year, the Fenix share price was up 97.8% to an all-time high of 45.5 cents. The company has hit a number of milestones this year as it transitions from an iron ore explorer to producer. Some key financial highlights include:

• Unaudited sales revenue of $113 million
• Unaudited net profit before tax of $62 million
• Unaudited headline net profit after tax (NPAT) of $49 million

Dividend policy on watch

The company announced the finalisation of its dividend policy which provides, to the extent its dividends can be fully franked, a payout ratio of 50% to 80% of after-tax earnings.

With an unaudited headline NPAT of $49 million and market capitalisation of ~$132 million, this implies a price-to-earnings ratio of just 2.55 and a potential dividend yield between 19.58% and 30.6%.

Management commentary

Fenix Resources managing director Rob Brierley commented on the results, saying:

Our unaudited financial results illustrate the rapid and relatively seamless execution of our project delivery strategy. We have hit the ground running and taken advantage of robust iron ore prices. The iron ore swap arrangements we entered into in July are already in-the-money and these arrangements secure Iron Ridge’s future for FY22 and beyond.

What’s next for Fenix Resources?

Brierley said that the company is targeting the release of its audited FY21 financial result in mid-September.

This potential near-term catalyst for the Fenix Resources share price will also include the declaration of its maiden dividend.

The post Fenix Resources (ASX:FEX) share price up 7% on profit and dividend surge appeared first on The Motley Fool Australia.

More reading

• OML (ASX:OML) share price up on first-half earnings rebound
• NIB (ASX:NHF) share price sinks 11% despite profit surge
• CBA (ASX:CBA) share price gaining as bank rolls out vax centres
• Why the Openpay (ASX:OPY) share price is rocketing 12% higher
• Audinate (ASX:AD8) share price climbs as FY21 revenue surges 22%

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/3gqO9t0

The oOh!Media Ltd (ASX: OML) share price has tipped slightly higher on Monday after the company released its 1H FY21 results.

At the time of writing, the OML share price is up 0.46% to $1.523.

OML share price lifts on EBITDA surge

The recovering outdoor advertising market has kicked off an earnings recovery for the OML business.

Despite the OML share price edging lower on Monday, the company delivered a solid financial performance in the first half, with highlights including:

• Revenue rose 23% against the prior corresponding period (pcp) to $251.6 million.
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 209% to $33.3 million
• Reported net loss after tax of $9.3 million compared to a loss of $28.0 million in pcp
• OML achieved #1 market position for outdoor advertising in Australian and New Zealand markets.

What happened to OML in 1H FY21?

The OML share price has been bumpy for the past 9 months despite a strong recovery in its financial performance.

The company advised that revenues in key formats have rebounded strongly, with commute, road and retail advertising formats increasing 26%, 44% and 40% respectively compared to 1H 2020. These three verticals contributed to approximately 90% of group revenues in 1H FY21.

oOh!Media said that the road format continued to be the best performing category following on from 2020, surpassing 1H 2019 figures by 16%. Commute has continued to be impacted by a decline in rail passenger figures in key stations in the Sydney and Melbourne rail networks. While retail advertising delivered a solid improvement and approaching 1H19 revenue levels.

Other minor formats including fly and locate (office), continued to be impacted in the first half through lower audience members, with revenues falling 56% and 33% respectively.

Management commentary

oOh!Media CEO Cathy O’Conner commented on the first half result, saying:

We have seen strong audience growth post lockdowns which has led to a significant turnaround in revenue for the half, particularly in our key formats of Road, Retail and Street Furniture in Australia and New Zealand.

That has also been a function of our strong suburban and regional network where we continue to provide unrivaled reach and frequency for advertisers.

Looking over at the company’s core Australia and New Zealand operations, O’Conner said that:

In Australia audience levels were consistent up to May 2021 before declining as a result of the Melbourne lockdown in June. Overall revenue has held consistently at 80% of 2019 levels with revenue in Road performing particularly strongly at 116% of the first half of 2019. New Zealand also performed at or slightly above 2019 levels.

As conditions have become more fluid during the pandemic, we are seeing advertisers capitalising on the flexibility of digital out of home (DOOH). With the largest quality digital network across the region, oOh! is well positioned to respond.

What’s next for oOh!Media?

oOh!Media advised that revenue for Q3 was currently 38% higher than the pcp and 74% higher than Q3 2019.

The company said that forward visibility remained uncertain “given the ongoing effects of COVID-19 lockdowns and associated movement restrictions”. However, OML expected that when the current lockdowns end, “there will be a strong recovery in audiences and associated revenues as has been the case previously”.

Despite a largely positive outlook and first half-performance, the OML share price has slipped 6.5% year-to-date.

The post OML (ASX:OML) share price up on first-half earnings rebound appeared first on The Motley Fool Australia.

More reading

• NIB (ASX:NHF) share price sinks 11% despite profit surge
• CBA (ASX:CBA) share price gaining as bank rolls out vax centres
• Why the Openpay (ASX:OPY) share price is rocketing 12% higher
• Audinate (ASX:AD8) share price climbs as FY21 revenue surges 22%
• Reliance Worldwide (ASX:RWC) share price hits 52-week high after 111% profit jump

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 recommended oOh!Media 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/3DitEsn