The ResApp Health Ltd (ASX: RAP) share price ticked up a notch towards the end of Monday’s market session. This followed the digital health company’s announcement that it has secured regulatory approval for its cough counter smartphone application.

At the closing bell, ResApp shares ended the day 5.36% higher to 5.9 cents apiece.

ResApp receives TGA clearance for cough counter smartphone application

Investors appeared to be excited by the company’s latest news, sending the ResApp share price into positive territory.

In the release, ResApp advised that its cough counter smartphone application has been approved by the Australian Therapeutics Good Administration (TGA). In addition, the medical software has also achieved a CE Mark certification.

The significant milestone enables ResApp to sell its cough counter smartphone application in Europe as a class 1 medical device. The software is also listed on the Australian Register of Therapeutic Goods (ARTG).

Notably, ResApp now holds the title of being the world’s first regulatory-approved standalone cough counter smartphone application.

Developed over the last 12 months, the cough counting application is designed to identify coughs and background noises in everyday settings. The software records the number of coughs from the user and uploads the data in a form of time and date stamps. This is then accessible to medical and healthcare professionals to monitor in real-time.

The company noted that cough frequency is a key factor in respiratory disease progression and management. Traditional methods such as self-reporting or listening to audio recordings are said to be costly that are inaccurate and labour-intensive.

The software is already being used by AstraZeneca in a clinical study to monitor patients who suffer from lung cancer. The program is set to run for a period of two years.

Management commentary

ResApp CEO and managing director, Dr Tony Keating said:

We are pleased to have secured regulatory clearance in Australia and Europe for our cough counting technology. The ability to measure cough frequency using only a smartphone is a highly scalable solution that has a number of broad clinical applications. After our success in partnering with AstraZeneca, we are particularly excited about the opportunity in supporting clinical trials, where cough can provide important insight into the progression of disease and efficacy of treatment.

ResApp share price summary

In July, ResApp shares were trading at multi-year lows before shooting up in the following months. While the company’s shares are down 30% year to date, the past week alone has netted a gain of almost 10%.

ResApp commands a market capitalisation of about $50.69 million and has 859.2 million shares on its books.

The post ResApp (ASX:RAP) share price jumps 5% on regulatory approval appeared first on The Motley Fool Australia.

More reading

• ResApp (ASX:RAP) share price rockets 11% on new Johnson & Johnson deal

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/3E5fRVJ

If you still own Phoslock Environmental Technologies Ltd (ASX: PET) shares, there’s a good chance you have forgotten about them.

This formerly-listed ASX share hasn’t been available for share trading on the ASX for more than a year now. Phoslock’s last day of public trading was way back on 16 September 2020. That was succeeded by a seemingly-routine trading suspension. That suspension ended up turning into an effective freeze on trading that is still going on today.

So what happened with Phoslock?

Well, following the initial suspension of trading, 21 September 2020 saw the company release a market update. This informed investors of the following:

Phoslock… wishes to advise that an ongoing independent investigation initiated by the chairman and managing director has revealed certain accounting irregularities relating to PET’s China Operations. 

The investigation, being undertaken by KPMG’s forensic accounting division, follows suspected accounting irregularities discovered during the audit process for the half year ended 30 June 2020.

Then, on 8 October 2020, Phoslock put out another announcement, this one expanding on these “irregularities”:

Fraudulent activity has been identified, including false accounting and falsification of invoices and service contracts where PET or its subsidiaries are the recipient, and potential improper tax reporting and misappropriation of funds. Several China-based employees have been either stood down or terminated in relation to these matters. It has also been confirmed that several previously undisclosed related party transactions have taken place. 

It was at this point that Phoslock determined that “the company’s shares will remain suspended from trading until such time as the investigations are complete; the financial and accounting impact has been assessed; and audited accounts for the half year have been released”.

Phoslock share price: Stuck in purgatory

Well, investors are still waiting as we approach December 2021. An update on this matter came as part of Phoslock’s September quarterly report. This was released to investors back on 29 October. This stated that Phoslock’s board and management “continue to assign a high priority to the relisting of PET’s shares on the ASX”.

Earlier this month, we had Phoslock’s latest update. This stated that “the pathway to relisting involves satisfying ASX in relation to two key requirements”.

The first of these involves submitting “statutory accounts without audit qualifications on opening balance”. Phoslock reckons it will be in a position to fulfil this requirement by February 2022.

The second “involves the ASX being satisfied that the company has taken all reasonable measures to ensure shareholders are fully informed in relation to all relevant matters concerning the company”.

On this second requirement, Phoslock says that “we are now in a position to brief shareholders more fully having now completed a number of important phases of the investigations, placing us in a position to provide shareholders with a more detailed update as to where those matters now sit”.

So it seems that shareholders can circle February 2022 as a possible return date of this company to the ASX boards. Until then, the waiting game looks set to continue for investors.

The post Whatever happened to Phoslock (ASX:PET) shares? appeared first on The Motley Fool Australia.

More reading

• ResApp (ASX:RAP) share price jumps 5% on regulatory approval
• Could this make an Oil Search (ASX:OSH) merger even better value for Santos?
• Mineral Resources (ASX:MIN) share price jumps on rail agreement
• Why is the Origin (ASX:ORG) share price outperforming AGL in November?
• AFIC (ASX:AFI) aims to grow its dividends faster than inflation. Is it delivering?

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.

from The Motley Fool Australia https://ift.tt/3o3NUIB

Oil Search Ltd (ASX: OSH) shares could increase in intrinsic value ahead of the company’s merger with Santos Ltd (ASX: STO). Government approval for its 38.5% owned P’nyang gas field is reportedly imminent.  

At Monday’s close, the Oil Search share price is $3.91, 2.01% lower than at the end of Friday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) slid 0.54% today while the All Ordinaries Index (ASX: XAO) fell 0.49%.

Let’s take a closer look at today’s reports of Oil Search.

Is Oil Search fairly valued in its planned merger?

Oil Search’s merger with Santos might be weighted even more heavily in Santos’ favour as a major project is reportedly about to get the green light.

Oil Search owns the P’nyang gas field in conjunction with Exxon Mobil Corp (NYSE: XOM). The pair have been fighting to get approval for the venture for several years.

Exxon announced negotiations between it and the Papua New Guinea Government were to restart in August. The subject of the talks is to allow the development of the gas field.

According to today’s reporting by The Australian, those discussions are expected to come to an end next week, with Exxon to walk away with the government’s permission to get to work.

If the venture is granted governmental approval, it might exacerbate the already unequal distribution of shares in the entity resulting from Oil Search and Santos’ fusion.

As The Motley Fool previously reported, an independent expert has already found the merger doesn’t reflect Oil Search’s true value. They said:

Oil Search shareholders are contributing around 43%-44% of the aggregate estimated underlying value of the merged group compared to the 38.5% of the merged group that they will receive.

However, the expert still deemed the scheme is in the best interests of Oil Search shareholders. Whether shareholders will agree is yet to be seen.

For the merger to go ahead, 75% of Oil Search shareholders must vote in favour of the scheme. The vote is due to be held on 7 December.

The post Could this make an Oil Search (ASX:OSH) merger even better value for Santos? appeared first on The Motley Fool Australia.

More reading

• ASX energy shares on watch after Omicron sparks oil price crash
• Santos (ASX:STO) share price dips despite progress on $21 billion merger
• 5 things to watch on the ASX 200 on Thursday
• Biden taps oil reserve. What could this mean for ASX oil shares?
• Here’s why the Oil Search (ASX:OSH) share price is slipping today

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/3pc1uJ0

Shares in mining services company Mineral Resources Ltd (ASX: MIN) charged higher today and finished 3.35% in the green at $44.99 apiece.

Investors responded positively after the company announced it has entered into a port and rail agreement with Hancock Prospecting Ltd and Roy Hill Holdings Ltd.

Here are the details.

Pilbara ports

Under the agreement, Mineral Resources and Hancock will jointly investigate the development of a new iron ore export facility at Port Hedland’s Stanley Point Berth 3 in South West Creek, Western Australia.

Roy Hill is set to provide services to both companies for “development and operation of the project, including rail haulage and port services”.

According to the company, the project aligns with its strategy to unlock stranded deposits in the Pilbara by developing pit-to-port solutions and expanding its capability to be a low-cost international iron ore supplier.

Mineral Resources and Hancock will form a joint venture to seek to obtain necessary approvals and agreements with the Pilbara Ports Authority (PPA). If successful, the pair will develop and operate the iron ore export facility at Port Hedland’s Stanley Point Berth 3.

The project is subject to a number of contingencies, including a grant by the PPA and both companies agreeing to take a final investment decision to proceed.

Investors can expect more updates as the project works through its milestones, according to the announcement.

What’s the purpose?

According to Mineral Resources, the project gives the company a port and rail haulage solution to deliver ore mined
from its deposits to Port Hedland.

It notes that “haulage solutions are key to unlocking stranded assets in the Pilbara and this agreement will provide a cost-effective solution for [the company] to develop its Pilbara assets”.

Hence the move is undoubtedly a strategic one for Mineral Resources to continue developing its interests in the Pilbara region.

Commenting on the agreement, Mineral Resources managing director Chris Ellison said:

We are pleased to have entered into the Port and Rail Agreement with Hancock and Roy Hill. This partnership and
infrastructure sharing is the first of its kind in the Australian resources industry and would enable significant value to be unlocked for MRL in a sustainable manner.

Ellison continued:

Our long-stated strategy is to transition from short-life, high-cost mines to lower-cost, long-life operations underpinned by innovative infrastructure solutions. Developing our stranded assets will provide additional growth for MRL’s unique mining services build-own-operate model.

Mineral Resources share price snapshot

The Mineral Resources share price has gained 41% in the past 12 months and has lifted 20% this year to date.

It has climbed 17% in the past month alone and is flying in the past week as well, after gaining another 9%.

The post Mineral Resources (ASX:MIN) share price jumps on rail agreement appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares
• These are the biggest opportunities on the ASX in 2022: fund manager
• Why this mining analyst is upbeat on the iron ore price forecast
• Top brokers name 3 ASX shares to sell next week
• Why Crown, Mineral Resources, Sonic, and Treasury Wine are charging higher

The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3xy3vD5

The Origin Energy Ltd (ASX: ORG) share price is beating out its smaller energy peer, AGL Energy Limited (ASX: AGL), in November. Interestingly, it has been a month of relative radio silence from both ASX-listed companies. Likewise, the share prices of both energy retailers are in the red this month as we move towards December.

In November, the Origin share price has slipped 2.6% with hardly a peep from the company. Meanwhile, shares in AGL have suffered a 6.8% fall this month with little news, other than a Jobkeeper payments notice.

Let’s take a closer look at what’s been going on.

AGL keeps on sinking

It’s time to compare the Origin and AGL share price so far in November. To kick it off, let’s focus on what has been happening on the AGL front.

The share price destruction for AGL shareholders continues to be relentless. Earlier in the month, the 184-year-old company set a new 52-week low of $5.10. Though, in actuality, this was a multi-decade low for the AGL share price, not having been this low since the year 2000.

This disappointing achievement arrived at the doorstep of shareholders despite there being no price-sensitive announcement so far this month. In fact, the only notable news from the company was its declaration regarding Jobkeeper payments made to AGL during FY20 and FY21.

According to the release, the utility company received payments from the government for 70 individuals in FY20 and 66 individuals in FY21. This amounted to total Jobkeeper payments to AGL of $1,574,300 across the two financial periods.

Perhaps rubbing investors the wrong way, AGL has not made any voluntary repayment of the subsidies. This is despite numerous other ASX-listed businesses opting to pay back at least some of the taxpayer dollars that helped retain employees through the brunt of COVID-19.

Origin share price outperforms on a quiet month

It seems the less news the better is the case for the Origin share price this month. While it was quiet for AGL, it was even quieter for the larger electricity generator and retailer.

Investors are possibly still coming off the high from last month’s $2.12 billion sale of a 10% interest in Australia Pacific LNG. Furthermore, the transaction is expected to be completed by 31 December 2021. That means a $2 billion sugar hit is coming to the Origin balance sheet very soon.

Positively, the sale will allow the company to pay down its debts. At the end of June 2021, Origin had a debt of $4.939 billion, compared to cash of $898 million.

The Origin share price is still underperforming the S&P/ASX 200 Index (ASX: XJO) over the past year.

The post Why is the Origin (ASX:ORG) share price outperforming AGL in November? appeared first on The Motley Fool Australia.

More reading

• Here’s why this top broker is tipping 40% upside for the AGL (ASX:AGL) share price
• Does the AGL share price really offer a 14% dividend yield?
• The AGL (ASX:AGL) share price has lost 8% so far this month. What’s next?
• The AGL (ASX:AGL) share price is at all-time lows. Here’s why this fundie still thinks it’s poor value
• Here’s why the Origin (ASX:ORG) share price has outperformed the ASX 200 over the last 3 months?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3D1wKzt

The Australian Foundation Investment Co Ltd (ASX: AFI) has been an ASX stalwart for decades. Since it first opened its financial doors in 1928, AFIC (as it’s more easily known) has built a reputation as a listed investment company (LIC) focused on strong, stable and robust returns. In an age before anyone had heard of an exchange-traded fund (ETF), this was a useful reputation to have.

And it’s one that AFIC has arguably upheld in this modern age. According to the company’s website, AFIC shares have returned an average of 13.2% per annum over the past 10 years (including the benefits of franking). That is a significant outperformance of the S&P/ASX 200 Accumulation Index, which has returned 11.6% per annum over the same period (also including franking).

Dividends: Has AFIC still got it?

One of the main attractions that investors have towards AFIC is the company’s history of dividend payments. AFIC has paid out a biannual dividend for decades now, and one that has tended to rise over time.

With talk of inflationary pressures returning to investors’ minds with a vengeance in 2021, dividends are arguably more important than they have been for years. This, AFIC is happy to tell us, is a primary concern for this company. Here’s what it has to say on its dividend policy:

As a long-term investor, our primary method of communicating value to our shareholders is through a growing stream of fully franked dividends. We aim to provide shareholders with real income growth through dividends growing at a greater rate than inflation.

So AFIC promises investors that it will ‘aim’ to ensure its dividends not only keep pace with inflation but outstrip it, compensating investors over and above for its wealth-destroying effects.

So how do AFIC’s dividends measure up in this regard?

Well, here is a table of AFIC’s dividend payments over the past decade or so, against the Australian inflation rate (sourced from rateinflation.com):

Year	AFIC fully-franked dividend (cents per share)	Rise over previous year	Annual inflation rate
2011	21	–	3.3%
2012	21	–	1.8%
2013	22	4.76%	2.4%
2014	22	–	2.5%
2015	23	4.55%	1.5%
2016	24	4.35%	1.3%
2017	24	–	1.9%
2018	24	–	1.9%
2019	32	33.3%	1.6%
2020	14	(56.25%)	0.8%
2021	14	–	~2.63% over first 3 quarters

A mixed bag when it comes to inflation

So as you can see, AFIC’s dividends have done a pretty decent job keeping ahead with inflation, with the obvious caveat that we haven’t seen this continuing over the past 2 years. The coronavirus pandemic has played havoc with both inflation and the share market. And while inflation seems to be stepping up more recently, AFIC’s dividend payments have yet to catch up. We can probably blame the dividend drought of 2020 for this.

As a LIC, AFIC holds an underlying portfolio of ASX shares, the most prominent of which are the blue chips like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC). Westpac and CBA (like the other ASX banks) slashed their dividend payouts last year in response to the threat COVID posed to the Australian economy. In turn, this means AFIC would have received fewer dividends from its holdings, hampering its capacity to fund its payouts.

So it remains to be seen whether AFIC’s 2022 dividends and beyond can return to the levels they were at before 2020 and, in turn, continue to keep up with inflation. So circle 24 January 2022 on your calendar – that’s when AFIC will release its interim results for FY2022, and we’ll probably find out what its next dividend will be.

At AFIC’s current share price of $8.18, this ASX LIC has a trailing dividend yield of 2.93%.

The post AFIC (ASX:AFI) aims to grow its dividends faster than inflation. Is it delivering? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Monday
• Here’s why the BetaShares Crude Oil Index ETF (ASX:OOO) is sliding 5% today
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps
• 5 things to watch on the ASX 200 on Monday

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 recommended Westpac Banking Corporation. 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/3xxpGJD

Today, the S&P/ASX 200 Index (ASX: XJO) suffered a loss even after recovering much of the ground lost from this morning’s dramatic fall. At the end of the session, the benchmark index finished 0.54% lower at 7,239.7 points.

The market was in a state of panic today as fears of the new Omicron COVID-19 variant emerges. However, thanks to some green shoots in the tech and materials sector a major down day was diverted. On the red side, energy and property shares felt the pinch of potential impacts from the new viral strain.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Bapcor Ltd (ASX: BAP) was the biggest gainer today. Shares in the automotive parts retailer gained 4.59% today, recovering partly from the fall that occurred last week after announcing the retirement of its CEO. Find out more about Zimplats here.

The next biggest gaining ASX share today was Domino’s Pizza Enterprises Ltd (ASX: DMP). The pizza chain operator rallied 4.43% to $130.60 despite no announcements from the company. Uncover the latest Domino’s Pizza Enterprises details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Bapcor Ltd (ASX: BAP)	$7.07	4.59%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$130.60	4.43%
Technology One Ltd (ASX: TNE)	$11.99	3.72%
Mineral Resources Ltd (ASX: MIN)	$45.08	3.56%
Mercury NZ Ltd (ASX: MCY)	$5.67	2.90%
Fortescue Metals Group Ltd (ASX: FMG)	$17.68	2.85%
Novonix Ltd (ASX: NVX)	$10.98	2.81%
Sonic Healthcare Ltd (ASX: SHL)	$42.70	2.64%
Latitude Group Holdings Ltd (ASX: LFS)	$2.05	2.50%
Pointsbet Holdings Ltd (ASX: PBH)	$7.42	2.49%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Own Domino’s (ASX:DMP) shares? Here’s how Pizza Hut is coming for a bigger slice of the pie
• These 3 ASX 200 shares are topping the volume charts this Monday
• Here’s why the BetaShares Crude Oil Index ETF (ASX:OOO) is sliding 5% today
• Why Domino’s, Healius, Kogan, and Vulcan shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps

Motley Fool contributor Mitchell Lawler owns shares of Sonic Healthcare Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Bapcor, Dominos Pizza Enterprises Limited, Pointsbet Holdings Ltd, 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/3D919fq

It’s been a mad Monday on the ASX as the broader index struggled to mitigate a general sell-off, but the AnteoTech Ltd (ASX: ADO) share price has weathered the storm.

At the market close, the company’s stock is trading flat with its previous closing price of 19.5 cents.

Let’s take a look at what might have buoyed the biotechnology company’s stock today.

A challenging day for some healthcare shares

Some earlier points of Monday’s session looked like a blood bath, with a sea of red sweeping over the major indexes.

The broader ASX market improved this afternoon before dropping again, with the S&P/ASX 200 Index (ASX: XJO) trading down 0.37% at the close. The All Ordinaries Index (ASX: XJO) slumped 0.34%.

Their weak performance was also reflected in the S&P/ASX 200 Health Care Index (ASX: XHJ), which was down 0.68% at today’s close of trade.

The CSL Limited (ASX: CSL) share price was among the leaders of the plunge, sporting a 1.69% drop. Mesoblast Limited (ASX: MSB) and Nanosonics Ltd (ASX: NAN) shares are also in the red. They have fallen 2.98% and 1.9% respectively.

What’s keeping the AnteoTech share price afloat?

Luckily for investors, the AnteoTech share price hasn’t suffered alongside many of its peers.

As my Foolish colleague Bernd reported earlier today, there were a few healthcare heavyweights recording decent gains on Monday.

The AnteoTech share price might have been held steady by an expectation that the new COVID-19 variant, Omicron, could bolster additional demand for the company’s COVID-19 rapid diagnostic tests.

AnteoTech has developed a rapid testing platform that can be used to identify COVID-19. The company has previously signed agreements that will see its rapid diagnostic instruments distributed in Turkey, Cyprus, Greece, and Romania.

Additionally, the testing device was submitted to the Therapeutic Goods Administration in September for approval for use in Australia.

The post Here’s why the AnteoTech (ASX:ADO) share price has withstood today’s sell-off appeared first on The Motley Fool Australia.

More reading

• Own Domino’s (ASX:DMP) shares? Here’s how Pizza Hut is coming for a bigger slice of the pie
• Liontown (ASX:LTR) share price struggles despite premium lithium update
• Here’s why these 3 All Ordinaries shares just hit 52-week lows
• These 3 ASX 200 shares are topping the volume charts this Monday
• Why is the Strike Energy (ASX:STX) share price climbing today?

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 shares of and has recommended CSL Ltd. and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics 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/316qwB2

The Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price could come under investor scrutiny as its major competitor has announced growth plans.

Domino’s is one of Australia’s biggest fast food businesses. But key rival Pizza Hut has plans to muscle in.

Pizza Hut wants a bigger slice of the market

According to reporting by the Australian Financial Review, Pizza Hut Australia wants to double the size of its business within four years.

Its plan is to increase the number of Pizza Huts by more than 100% to over 500 within four years.

Pizza Hut, according to its management, has already lifted its market share from 7% to 9% since the onset of COVID-19.

A key way that the pizza peer wants to expand is with growth of delivery thanks to the utilisation of technology. Management boast that it has managed to reduce average delivery time from 49 minutes to 31 minutes.

According to the reporting, Pizza Hut is on track to achieve sales growth of 26% in the 2021 calendar year to $240 million (up from $190 million in the 2020 calendar year). The challenger is thinking it’s going to add 45 outlets in 2022 and has plans for 100 new stores in the works.

In the longer-term, Pizza Hut believes that it can reach 750 outlets beyond that 4-year period, perhaps as much as 800.

The business had been growing even before COVID-19 came along, but the pandemic has acted as an “accelerant”. Same store sales had increased by 13.7% for the 12 months to 31 October 2021 according to the reporting by the AFR.

One of the final insights from Pizza Hut was that it isn’t facing inflation pressures thanks to long-term contracts with its parent for the next two and a half years – management say that’s locked in.

Where does this leave Domino’s and the share price?

Domino’s is a much bigger business and also has plans to grow. In FY21, Domino’s Australia saw almost $1.3 billion of network sales. At the latest count, Domino’s Australia had grown its outlet count to 722.

In FY22, the overall Domino’s business had seen network sales growth of 8% (on top of 14.9% growth in FY21), with same store sales growth of 4.3%.

Domino’s continues to add store organically and geographically. The ASX share had a total of 3,167 outlets at the last count after opening 64 more stores and acquiring a network of 156 in Taiwan.

There are now eight markets where Domino’s has more than 100 outlets in a countries: Japan (842), Australia (722), France (454), Germany (377), the Netherlands (329), Taiwan (156), New Zealand (141) and Belgium (123).

Domino’s expects to more than double its business over the decade ahead with continued growth beyond that. It continues to look for opportunities in additional markets.

When the company released its FY21 result, it was expecting new store openings to be an increase of between 9% to 12% for its 3-year to 5-year outlook. By the end of 2023 it’s aiming to reach 4,000 stores and by 2033 it is aiming to hit 6,650 Domino’s stores.

Domino’s share price snapshot

Today, the Domino’s share price climbed around 4% after the volatility of last week relating to the Omicron variant of COVID-19.

The post Own Domino’s (ASX:DMP) shares? Here’s how Pizza Hut is coming for a bigger slice of the pie appeared first on The Motley Fool Australia.

More reading

• Why Domino’s, Healius, Kogan, and Vulcan shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps
• 3 strong ASX growth shares for investors to buy in December
• 2 top ASX shares to buy and hold for a decade
• 2 excellent ASX growth shares to buy

Motley Fool contributor Tristan Harrison 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 Dominos Pizza Enterprises 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/3p6aYFH

The Liontown Resources Limited (ASX: LTR) share price failed to take off today despite the company’s positive announcement.

At market close on Monday, the lithium developer’s shares finished down 0.27% to $1.85.

What did Liontown update the ASX with?

It appears Liontown shares are taking a breather after zooming upwards 9.14% in the past week.

According to its release, Liontown advised that it has successfully completed a large-scale spodumene concentrate production program. Bulk samples were collected from the wholly-owned Kathleen Valley Project in Western Australia’s north-eastern Goldfields region.

The pilot program produced a large volume of 6% spodumene (Li2O) concentrate and a quantity of tantalum concentrate. Around 5 tonne of mineralised pegmatite from the company’s core inventory had been fed into the grinding mill.

The miner expects the successful operation to support both off-take negotiations and the planned lithium hydroxide downstream pre-feasibility study. Liontown is seeking to develop a leading second-generation lithium-tantalum mining and processing operation at Kathleen Valley.

Liontown managing director and CEO Tony Ottaviano commented:

The bulk sample testwork program is a key component of our thorough and exhaustive metallurgical testwork program for Kathleen Valley which continues to demonstrate Liontown’s commitment to evidence-based design.

The final product from the program will enable Liontown’s potential customers to test and pre-qualify our high-quality spodumene for operating in their refinery or toll-treaters. The product will also be used to support future detailed design engineering of our both our tantalum circuit and downstream lithium hydroxide refinery.

About the Liontown share price

It has been an outstanding 12 months for the Liontown share price, rising by more than 672% for the period. When looking at year to date, its gains are just as impressive, up around 513%.

The company’s shares reached an all-time high of $1.995 earlier this month, before settling back.

Based on today’s price, Liontown commands a market capitalisation of roughly $3.54 billion, with approximately 1.91 billion shares on issue.

The post Liontown (ASX:LTR) share price struggles despite premium lithium update appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• ASX 200 lithium shares in focus amid China supply shortage
• Top brokers name 3 ASX shares to buy next week
• Why Greenland Minerals, Liontown, Nearmap, and Pushpay shares are tumbling lower
• Why Liontown, Nearmap, Ramsay, and Xero shares are sinking today

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/3D6HjkB