The Credit Clear Ltd (ASX: CCR) share price is plummeting after it announced that it’s undergoing an acquisition worth upwards of $46 million.

To fund the transaction, the company is conducting a $29.5 million capital raise.

At the time of writing, the Credit Clear share price is 49 cents, 9.26% lower than its previous close.

Let’s take a closer look at the news that’s driving the financial services technology company’s stock downwards.

Credit Clear share price flops on new acquisition

It’s not a good day for the Credit Clear share price despite the company announcing that its acquiring debt recovery solution provider, ARMA Group Holdings.

Over financial year 2021, ARMA reported $15.5 million of revenue and $6.4 million of earnings before interest, tax, depreciation, and amortisation (EBITDA).

According to Credit Clear, the acquisition will provide more than 400 new active clients and a 140% boost to its revenue.

That’s expected to see Credit Clear bringing in $26.5 million in normalised, unaudited, pro-forma revenue on a financial year 2021 basis. The company also expects that its normalised, unaudited, pro-form EBITDA will increase to $3.9 million.

Finally, purchasing ARMA will help Credit Clear’s technology reach further into the Australian market. It will also speed up its adoption in the receivables management industry.

Credit Clear will be paying $46 million for the acquisition, plus earnout payments.

Of that $46 million, 40% will be paid in scrip and the other 60% in cash.

To fund the cash component, the company has undergone a $25.5 million placement. Within the placement, new shares were offered for 40 cents apiece.

A share purchase plan is expected to see another $4 million raised at the same offer price.

The scrip consideration is contingent on shareholder approval, which the company hopes to get in January.

Following the acquisition, ARMA founders, Andrew Smith and Shane Ashton will continue to manage the business. Andrew Smith will also be welcomed to the Credit Clear board.

What did management say?

Credit Clear CEO, David Hentschke commented on the news driving the company’s share price lower today, saying:

Credit Clear is at the forefront of a major global transformation in the way businesses interact with their customers. The ARMA acquisition provides us an opportunity to deploy this leading digital technology across ARMA’s significant existing client base and to win considerable new business together.

The post Credit Clear (ASX:CCR) share price tumbles 9% on acquisition news appeared first on The Motley Fool Australia.

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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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The IDT Australia Limited (ASX: IDT) share price is crashing down to Earth on Thursday morning.

At the time of writing, the pharmaceutical manufacturing company’s shares are down 37% to 30 cents.

Why is the IDT Australia share price crashing today?

Investors have been selling down the IDT Australia share price today after it was dealt a bitter blow.

Earlier this year, the company announced that it successfully manufactured an mRNA drug product. This made IDT the first in Australia to manufacture a cGMP mRNA drug product.

In light of this, there were hopes that this would support its Australian Government Approach To Market submission to establish an onshore mRNA manufacturing capability (ATM).

However, this morning the Australian Government has confirmed that IDT’s ATM submission has not been selected to progress to the next stage of the process.

IDT’s CEO, Dr David Sparling, commented: “Whilst we are disappointed in the outcome of the ATM process, IDT has developed and progressed several alternative strategic options. The Company has successfully delivered on the Monash Institute of Pharmaceutical Sciences (MIPS) COVID-19 mRNA receptor binding domain vaccine candidate project, being Australia’s first locally manufactured cGMP mRNA finished product and clearly showcases IDT’s manufacturing capabilities in this regard.”

What’s next?

Dr Sparling notes that the company remains in the running for the Manufacturing Collaboration Stream Grant Opportunity.

“IDT is now sterile licenced and is maintaining its sterile facilities in a state of readiness to accept COVID-19 vaccine content at the Government’s discretion. The Company is also waiting to receive feedback on its submission to the Australian Government’s $800m Modern Manufacturing Initiative (MMI) Manufacturing Collaboration Stream Grant Opportunity,” Dr Sparling added.

Positively, the company also stressed that the proposal is unaffected by the outcome of the ATM process. It will provide a market update if and when additional information comes to hand.

The post Why the IDT Australia (ASX:IDT) share price is crashing 37% lower today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Centuria Industrial REIT (ASX: CIP) share price is edging higher during early morning trade. This comes after the industrial real estate investment trust (REIT) announced a recently completed external revaluation of its portfolio.

At the time of writing, Centuria shares are up 1.51% to $4.04 apiece.

Centuria records strong asset value growth

Investors seem pleased with the company’s latest assessment, sending Centuria shares higher.

In today’s statement, Centuria advised that 66 investment properties, representing about 86% of its portfolio, have been externally valued.

The total value of its assets increased to $3.8 billion. This is a 9.6% or $281 million uplift from the prior book values. In addition, the growth reaffirms Centuria as Australia’s largest listed pure-play industrial REIT.

The biggest mover across its asset base is the Telstra Data Centre Complex in Clayton, Victoria. The facility’s worth jumped by $55 million or 11% as a value increase percentage to $560 million. Most of the other key valuation movers were in New South Wales, Western Australia, and South Australia.

Furthermore, Centuria noted that the total portfolio weighted average capitalisation rate (WACR) firmed to 4.20%. Pro forma net tangible assets (NTA) improved to $4.22 per unit (net assets less goodwill divided by number of units on issue).

Centuria fund manager Jesse Curtis commented:

CIP has achieved a strong valuation uplift throughout the past six months largely due to positive leasing activity across the portfolio, demonstrating our active approach to leasing. Tenancy demand continued to be driven by ecommerce growth and infrastructure investment across all major domestic markets during the 2021 calendar year.

During the period, the Australian industrial real estate market has continued to strengthen through capital value growth and yield compression. Sector tailwinds have attracted a significant wave of capital seeking to increase exposure to industrial assets. Investment activity, coupled with record low vacancy and robust tenant demand, is likely to drive strong rental growth resulting in continued appreciation of industrial asset values.

Centuria share price summary

It’s been a positive 12 months for Centuria shareholders, with the REIT shares surging 30% for the period. It’s worth noting that Centuria is closing in on its all-time high of $4.10 achieved in September this year.

Based on today’s price, Centuria has a market capitalisation of more than $2.55 billion. It has a tad over 632.91 million shares outstanding.

The post Centuria Industrial REIT (ASX:CIP) share price lifts on valuation surge appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned.

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The BHP Group Ltd (ASX: BHP) share price is losing its grip this morning, slipping to the downside. Today’s move follows the Australian Competition and Consumer Commission (ACCC) announcing its verdict on Woodside Petroleum Limited‘s (ASX: WPL) proposed acquisition of BHP’s petroleum business.

In morning trade, the diversified mining giant’s shares are fetching $40.66, down 1%. The regulatory green light comes 23 days after the mega-merger was first announced.

Why did the ACCC give Woodside the green light?

Shareholders from both Woodside and BHP are one step closer to an amalgamated future today. Yet, looking at the BHP share price today, you wouldn’t think investors are too excited about it.

A media release from the ACCC states the corporate watchdog will not oppose Woodside’s proposed acquisition of BHP Petroleum and its oil and gas assets.

According to the release, the regulator carefully considered the potential impacts of the deal. Specifically, the supply of domestic natural gas in Western Australia. This is because the WA market is the only area where the two energy giants overlap. Whereas, all other customers are either offshore or in areas where the two do not coincide.

ACCC chair Rod Sims commented:

We found that post-acquisition, Woodside would continue to face competition from a range of suppliers of domestic gas, including major producers Chevron and Santos, and from several other smaller suppliers including Shell and ExxonMobil. Woodside’s share of domestic gas after the acquisition will be approximately 20 percent.

Due to the likely presence of reasonable competition, the Australian regulator has opted to allow the deal to proceed. Despite this development, the BHP share price is weakening as investors digest the news.

As the merger takes another step forward to solidifying, the ASX could soon count Woodside as a top 10 global independent energy company.

How has the BHP share price been tracking?

Investors in BHP have been riding a wave of increased volatility in the BHP share price since August. A cratering iron ore price has dragged the Australian mining company away from its 52-week high by approximately 25%. However, shares in BHP have been rebounding in recent weeks.

At present, the BHP share price is trading at a price-to-earnings (P/E) ratio of 13.2 times. For comparison, the Australian metals and mining industry average P/E ratio is around 15.2 times.

The post BHP (ASX:BHP) share price slips as ACCC gives all-clear for Woodside deal appeared first on The Motley Fool Australia.

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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 Vicinity Centres (ASX: VCX) share price is in the green this morning after the company announced its preliminary asset valuations have come in $309 million higher.

The unaudited boost represents a 7 cent per share increase to the company’s book values as of 31 December 2021.

At the time of writing, the Vicinity Centres share price is $1.76, 1.73% higher than its previous closing price.

Let’s take a closer look at today’s news from the shopping centre-focused real estate investment trust (REIT).   

Vicinity Centres share price takes off on higher valuations

The increase in the company share price has likely thrilled many shareholders. Particularly, as the company’s valuations tumbled $181 million over the second half of financial year 2021.

That represented a 1.3% fall, driven by Victorian land tax and stamp duty increases, as well as COVID-19 impacts.

Today, the company announced that its assets’ values have seemingly been fortified by a strong capital transaction market and resilient underlying retail sector.

The $309 million preliminary increase represents a 2.2% uplift in book values. It also heralds a 13 basis point tightening of the weighted average capitalisation rate to 5.35%.

The valuations are still subject to finalisation and external auditor review. Any increase will be confirmed when the company releases its results for the first half of financial year 2022 in February.  

Vicinity Centres CEO and managing director, Grant Kelley commented on the news driving the company’s share price today, saying:

DFO valuations continue to grow as tightening capitalisation rates and income growth highlight the strength of our DFO portfolio … Vicinity is the market leader in the Outlet category…

Pleasingly, our CBD portfolio recorded a modest uplift in valuations over the period, supporting our view that the outlook for CBD retail is improving and these centres will return to their former vibrancy over time.

The post Here’s why the Vicinity Centres (ASX:VCX) share price is gaining today appeared first on The Motley Fool Australia.

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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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Telstra Corporation Ltd (ASX: TLS) has paid a $2.53 million penalty after a watchdog investigation found “large-scale breaches” that put customers in danger.

The Australian Communications and Media Authority (ACMA) revealed on Thursday that its enquiry found Telstra had:

• Failed to correctly upload an unlisted (silent) phone number to the Integrated Public Number Database (IPND) almost 50,000 times
• Failed to provide data or update the IPND for customers of its Belong brand in more than 65,000 instances

This meant that customers who chose to have their numbers not listed on public lists had their details exposed.

ACMA chair Nerida O’Loughlin was in no doubt that this jeopardised the safety of some Australians.

“When people request a silent number it is often for very important privacy and safety reasons, and we know that the publication of their details can have serious consequences,” she said.

Emergency services had wrong information

Incorrect information on the IPND also has serious consequences even for customers who don’t have silent phone numbers.

Triple Zero services use the database to locate callers in an emergency. The Emergency Alert Service also utilises the IPND to send out warnings for events like severe floods or bushfires.

Law enforcement bodies also access the database.

“The provision of these critical services can be hampered and lives put in danger if data is missing, wrong or out of date. It is alarming that Telstra could get this so wrong on such a large scale,” said O’Loughlin.

A Telstra spokesperson told The Motley Fool that the telco had accepted ACMA’s findings and paid the infringement notice.

“We have an obligation and responsibility to protect the privacy and safety of our customers – and we haven’t met our own high expectations or those of our customers,” the spokesperson said.

“We self-reported these issues to ACMA and took steps to correct them.”

While O’Loughlin agreed that Telstra had self-reported and quickly fixed the problem, it has a history.

“This is not Telstra’s only recent major breach of these rules, which is why the ACMA has taken this action.”

Telstra shares were up 0.12% in early trade on Thursday, changing hands for $4.105. They’ve gained more than 36% in value this year.

The post Telstra (ASX:TLS) pays huge fine for putting Australians in danger appeared first on The Motley Fool Australia.

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The RPMGlobal Holdings Ltd (ASX: RUL) share price has lifted out of an early dip at the open today after news the company is acquiring the rights to use a carbon management software.

It will use the software to build an environmental, social, and governance (ESG) focused “sustainability technology vertical”.

At the time of writing, the RPMGlobal share price is up 0.97%, trading at $2.08.

Let’s take a look at today’s announcement from the mining industry service provider.

RPMGlobal share price lifts on technology acquisition

The RPMGlobal share price is heading north this morning after the company announced it was strategically acquiring a copy of Eden Suite‘s environmental data management and reporting software.

That will see it with the exclusive right to use Eden Suite’s intellectual property in the mining and quarrying industries.

Access to the software will cost RPMGlobal $400,000, which it will pay in cash.

The purchase follows the company’s acquisition of 2 ESG businesses, Nitro Solutions Pty Ltd and Blueprint Environmental Strategies, in July and September respectively.

Thus, today’s news marks the first software solution used in the company’s brand new vertical.

Eden Suite’s software can track, forecast, and report carbon emissions output. Companies can log emissions sources in the program. Then, those sources are integrated through direct data linkages.

According to RPMGlobal, miners currently struggle to report emissions output due to a lack of data capture.

Management commentary

RPMGlobal CEO and managing director Richard Mathews commented on the news, saying:

Mining organisations are being required to undertake an increasing amount of time sensitive statutory reporting for ESG and this can no longer be reliably delivered through the use of Excel spreadsheets.

With the RPM Emissions Management Software solution, a site or an entire organisation can generate annualised emissions submissions that can be summarised into daily emissions trends per activity or even source…

Real-time data capture allows mining clients to proactively monitor and manage their progress across scope 1, 2 and 3 inventories.

Right now, the RPMGLobal share price is 59% higher than it was at the start of 2021. However, it has fallen 1.9% over the last 30 days.

The post The RPMGlobal (ASX:RUL) share price lifts on new acquisition appeared first on The Motley Fool Australia.

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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. owns and has recommended RPMGlobal Holdings. The Motley Fool Australia has recommended RPMGlobal Holdings. 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 Lake Resources N.L. (ASX: LKE) share price is having a positive start to the day.

In early trade, the clean lithium developer’s shares are up 4% to 87.5 cents.

This latest gain means the Lake Resources share price is up an incredible 1,150% in 2021.

Why is the Lake Resources share price pushing higher today?

Investors have been bidding the Lake Resources share price higher this morning following an update on drilling plans across its operations.

According to the release, the company is aiming to expand its lithium projects and potential resources with new drilling at its lithium brine projects at Olaroz, Cauchari and Paso. These drilling activities are scheduled to start in late January with a 10 hole 4000m drill program.

The release highlights that these projects are located in Jujuy province, north-west Argentina, close to the Allkem Ltd (ASX: AKE) Olaroz operation and the Lithium Americas-Ganfeng Cauchari project.

Lake Resources’ Managing Director, Steve Promnitz, commented: “Increasing demand expressed by potential offtakers for a secure supply of high quality, environmentally friendly lithium has encouraged Lake to drill and test our other 100 percent owned brine projects in Argentina, adding to our flagship Kachi Project.”

Production target doubled at Kachi

It certainly has been a busy period over at Lake Resources. The company recently revealed that drilling and DFS development work at the flagship Kachi Lithium Project supports the doubling of its production target.

If it delivers on this, management expects it to allow the company to benefit from increasing demand for high-grade, battery quality lithium produced via the environmentally sustainable, direct extraction process.

All in all, it feels these projects make Lake well placed to expand output, with support from export credit agencies and international investors.

“Now is the perfect time to expand our resource base, with Argentina gaining increasing international investment due to the quality of its lithium resources. Having recently visited the project site and engaged with local stakeholders, we are keen to ramp up activity early in the new year to seize this window of opportunity for Lake,” Mr Promnitz concluded.

The post Why the Lake Resources (ASX:LKE) share price is up 4% today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Allkem Limited. 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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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.

One of the common investment theses behind Bitcoin (CRYPTO: BTC) is that it’s a great hedge against inflation. There are only 21 million Bitcoin available once they’re all mined, limiting supply. In theory, this limited supply should mean that Bitcoin is a good hedge against the increased supply of the U.S. dollar. 

This theory comes into question when we look at the data about Bitcoin’s price trends and real inflation. Does Bitcoin really trade as an effective hedge to inflation, or is there something else to its moves? 

Why Bitcoin is viewed as an inflation hedge

The theory behind Bitcoin as an inflation hedge is simple enough. The number of Bitcoin is limited to 21 million, while the number of U.S. dollars typically increases over time. With everything else being equal, if the supply of the U.S. dollar increases, the value of Bitcoin in dollars should also increase. 

Here is an extremely simplistic example of the value of Bitcoin if the supply of dollars doubles. I assume that the “market cap” of U.S. dollars and Bitcoin are equal in both scenarios. 

Currency	Supply Scenario 1	Price Scenario 1	Supply Scenario 2	Price Scenario 2
U.S. Dollar	1 trillion	$1	2 trillion	$1
Bitcoin	21 million	$47,619	21 million	$95,238

Note: Author’s calculations.

If the supply of U.S. dollars doubles, then it makes sense that the value of a Bitcoin would double in relation to the U.S. dollar. The market doesn’t always work in this simple way, though. 

Bitcoin hasn’t been a hedge so far

If we go back to pre-pandemic days, Bitcoin doesn’t look like a hedge at all. Bitcoin rose in popularity in late 2017 but then crashed in 2018 and early 2019, and that didn’t have anything to do with inflation. Over this time, the M2 money supply rose 25.3%, and gold would have been a better direct hedge, rising 51.9%. 

Bitcoin Price data by YCharts

More recently, Bitcoin hasn’t acted like a hedge as actual inflation has taken hold. You can see below that inflation, and inflation expectations, have been rising all year, but Bitcoin is actually down compared to late February. Investors looking to hedge inflation would have been better off buying the iShares TIPS Bond ETF (NYSEMKT: TIP), a bond fund of inflation-protected treasuries. 

Bitcoin Price data by YCharts

What is Bitcoin if it’s not a hedge? 

Over the last decade, we’ve seen Bitcoin’s value swing wildly. However, it hasn’t been correlated with inflation in any meaningful way. You can see below that Bitcoin hasn’t been consistently correlated with growth stocks or inflation stocks and for large portions of the last year were negatively correlated (a correlation coefficient of 1.0 means they’re highly correlated while a coefficient of -1.0 means they move in opposite directions). 

Fundamental Chart data by YCharts

I see the recent rise in Bitcoin as a speculative move driven by millions of people with excess stimulus cash and ample time to trade in the high-flying cryptocurrency market. That has brought in more institutional money, pushing values even higher. At the end of the day, it’s not clear whether Bitcoin is like digital gold, some kind of utility, or just a speculative asset. 

From what I can see, based on the fact that inflation is rising in 2021 while Bitcoin is heading lower, Bitcoin isn’t a good inflation hedge, and investors should seek a better investment thesis for this digital asset. 

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

The post Is Bitcoin a good inflation edge? appeared first on The Motley Fool Australia.

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Travis Hoium 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 Bitcoin. 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.

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

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When it comes to investing in ASX Real Estate Investment Trusts (REITs), most investors come for the income, and, well, stay for the income. REITs are governed by special rules, which means that they can often pay out pre-tax dividend distributions. This can lead to market-leading yields on some ASX REITs (although most don’t come with franking for this very same reason). So let’s check out Stockland Corporation Ltd (ASX: SGP).

Why Stockland? Because, as of this morning, we’ve got some news on Stockland’s own dividend.

Like many ASX REITs and dividend-paying shares, Stockland’s dividends took a beating with the onset of the COVID-19 pandemic. This was a REIT that paid out 27.6 cents per share in dividend distributions in 2019. But 2020 only saw 21.9 cents per share paid out to investors, split into a 10.6 cents per share interim payout and an 11.3 cents per share final distribution.

This year, Stockland has lifted its payments off of those lows. Its June 2021 interim payment came in at 13.3 cents per share, just 0.2 cents lower than the same interim payment from 2019.

So what has Stockland announced this morning? Could its dividend distributions have recovered even more?

Well, Stockland has just announced that its 2021 final dividend distribution will come in at 12 cents per share, to be paid out on 31 December. That will bring its total dividend distributions for 2021 to 25.3 cents per share. That’s well above 2020’s 21.9 cents, but not yet at 2019’s high watermark of 27.6 cents.

Even so, no doubt Stockland shareholders will be pleased with this news. On recent Stockland pricing, that gives this company a forward yield of 5.93%

Stockland share price snapshot

2021 has been a rough year for Stockland. Its shares remain down 0.23% year to date, and 4.9% over the past 12 months. Stockland is even down around 2.3% over the past 5 years. At the latest pricing, the company has a market capitalisation of $10.2 billion.

The post Here’s the latest on the Stockland (ASX:SGP) dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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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