The Bitcoin (CRYPTO: BTC) price has slipped back below the vaunted psychologically important US$50,000 level.

Having traded as high as US$50,496 during the past 24 hours, Bitcoin is down 1.4% since this time yesterday, currently trading for US$49,549.

Still, the world’s biggest crypto by market cap remains up 70% since 1 January.

Where it heads next is up for debate.

Taking a technical analysis view, global multi-asset investment platform eToro’s market analyst Josh Gilbert said, “If BTC can break above the next resistance level at $51,000 and hold, then I expect to see further upside as demand increases.”

But there’s more to the world of cryptos than Bitcoin.

A lot more.

Rising altcoin star Cardano claims number 3 spot

Yes, we’re looking at you Cardano (CRYPTO: ADA).

This time last year you could have picked up 1 Cardano for 12 US cents.

Having gained another 2.8% over the past 24 hours, the altcoin is now worth US$2.88. That gives it a market valuation of US$92.9 billion.

That’s enough to vault Cardano into the number 3 crypto spot. It now trails only Ethereum (CRYPTO: ETH) – market valuation of US$391.4 billion – and Bitcoin, with its market valuation of US$928.8 billion.

In other words, if today is the first time you’ve heard of Cardano, it’s unlikely to be the last.

Could this be the next Bitcoin?

While Cardano has a long way to go before it overtakes Bitcoin in terms of market valuation, don’t forget that only 12 months ago it was trading for a mere 12 US cents.

Gilbert said, “We know that investors are bullish on ADA, as it was the most traded cryptoasset globally by eToro investors in Q2 2021.”

According to Gilbert:

While BTC continues to be the most dominant cryptoasset, it has been recently outperformed by Cardano (ADA). ADA has reached new record highs trading at US$2.88, up more than 1,480% year-to-date.

Gilbert adds that, “ADA is the largest altcoin by market cap to reclaim a new all-time high since the crypto sell-off in May 2021.”

Bitcoin is still some 24% below its mid-April record highs of US$64,829. Ether, currently at US$3,334, also remains down 24% from its US$4,382 record high reached in mid-May.

So why all the investor enthusiasm for Cardano?

According to Gilbert:

The Alonzo upgrade for ADA, which will provide smart-contract capabilities to the network, is set to be fully released by September 2021… Once the upgrade is complete, ADA will be in a solid position to challenge Ethereum (ETH) for the De-Fi crown. The price appreciation of ADA with benefits such as staking makes it a standout to retail investors.

Whether Cardano continues its march higher or is due for a sharp retrace remains to be seen.

But for now, it would seem, Bitcoin has a new challenger.

The post The next Bitcoin? Why investors are bullish on fast-rising altcoin Cardano appeared first on The Motley Fool Australia.

More reading

• Bitcoin rockets past US$50,000 as analysts eye October price catalyst
• Up 50% in a month! Bitcoin is back over US$50,000
• 1 smart way to invest in Dogecoin without buying cryptocurrency
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• Cardano reaches new milestone as market cap narrows with Bitcoin

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

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The Reece Ltd (ASX: REH) share price will be on watch on Wednesday.

This follows the release of the plumbing parts company’s full year results after the market close today.

Reece share price on watch after reporting strong profit growth

• Sales revenue up 4% to $6,271 million
• Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) up 11% to $720 million
• Net profit after tax up 25% to $286 million
• Earnings per share lifted 10% to 44 cents
• Fully franked final dividend doubled to 12 cents per share, bringing full year dividend to 18 cents per share (up 50% year on year)

What happened for Reece in FY 2021?

For the 12 months ended 30 June, Reece reported a 4% in sales revenue to $6,271 million.

This was driven by a 9% increase in ANZ revenue to $3,154 million and an 11% constant currency increase in US revenue to US$2,333 million. The latter was flat year on year in Australian dollars at $3,117 million due to the impact of foreign exchange.

Reece’s earnings grew at a quicker rate on a normalised basis thanks to margin expansion and operational discipline. Normalised EBITDA grew 11% to $720 million over the 12 months.

This comprises a 17% increase in normalised ANZ EBITDA to $496 million and a 10% lift in normalised US EBITDA to US$167 million.

What did management say?

Reece’s CEO and Managing Director, Peter Wilson, was pleased with the way the company overcame numerous challenges during FY 2021.

He said: “FY21 presented many challenges. The evolving environment due to the pandemic, the Texas freeze and the Australian bushfires tested us. But it’s also shown how resilient our business is.”

“This year, we cemented our 2030 vision – to be the trade’s most valuable partner, helping them succeed in a digital world. We’ll do this by being brilliant at the fundamentals of our operations, being both strategic and opportunistic to grow the business and fostering a culture of innovation. This approach, coupled with construction activity being at an all-time high, and our customers being busier than ever, has led to record results for the Group.”

What’s next for Reece?

No guidance or trading update for early in FY 2022 has been provided. This could potentially weigh on the Reece share price on Wednesday.

The post Reece (ASX:REH) share price on watch after 25% increase in FY 2021 profits appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today

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

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The Coles Group Ltd (ASX: COL) share price did not having a fantastic day today. At market close, Coles shares are down a nasty 3.24% to $18.23 a share. That’s in stark contrast to the S&P/ASX 200 Index (ASX: XJO), which finished the day up 0.18%, at 7,503 points.

But Coles investors should be used to a dash of underperformance by now. That’s because the Coles share price is also trailing the ASX 200 in 2021 so far. While the ASX 200 is up a healthy 12.25% year to date, Coles shares are down 1.46% over the same period.

Over the past year, the story is not much better. Whilst the ASX 200 has put on 21.77% over the past 12 months, Coles shares have gone backwards by 3.19%. In other words, the Coles share price has underperformed the ASX 200 by roughly 25% in the past year. Ouch.

So what gives?

Why have Coles shares underperformed the ASX 200 over the past year?

Like many things in life, some of those numbers are relative.

Part of the reason why the ASX 200 has had such a good 12 months is because of how much it fell during the COVID-induced market crash last year. While the ASX 200 fell by roughly 33% between 21 February 2020 and 20 March 2020, Coles shares actually rose over this same period. We can probably thank the very public panic buying that was going on back then for investors’ faith in Coles shares at the time.

So in other words, one of the reasons the ASX 200 has outperformed Coles shares over the past year is that they simply had more headroom to recover in the months following the crash. Since Coles really didn’t fall that much, there was less room to rise when the fear left the markets.

But we can’t just blame this for Coles’ more recent woes.

Half-year earnings disappoint

Another major anchor on Coles shares over the past year was its last earnings report. Not the one that the company delivered earlier this week (which has been quite warmly received). Rather, the half-year report we saw all the way back in February.

Although Coles delivered some healthy numbers at the time, investors seemed really spooked by the company’s warnings about the future. Here’s what Coles’ management said at the time:

Depending on COVID-19, vaccine roll out and efficacy, and other factors, sales in the supermarket sector may moderate significantly or even decline in the second half of FY21 and into FY22. Coles will be cycling elevated sales from COVID-19 in Supermarkets late in the third quarter, for the remainder of the second half, and most of FY22.

This really turned investors off Coles, evidenced by the fact that the Coles share price fell by more than 15% over the subsequent fortnight.

About the Coles share price

But everything is relative. Since bottoming out at $15.28 a share a few weeks after this report was released, Coles is now up almost 20% from those lows. The ASX 200 has ‘only’ managed to add around 12.4% over the same period.

At the current Coles share price, the grocery giant has a market capitalisation of $24 billion, a price-to-earnings (P/E) ratio of 24.35 and a dividend yield of 3.33%.

The post Why the Coles (ASX:COL) share price has underperformed the ASX 200 in the last year appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares this Tuesday
• Here are the top 10 ASX 200 shares on Tuesday
• Energy sector leading the ASX 200 shares on Tuesday
• ASX 200 midday update: Kogan crashes, Nanosonics rockets
• 5 things to watch on the ASX 200 on Tuesday

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 owns shares of and has recommended COLESGROUP DEF SET. 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 S&P/ASX 200 Index (ASX: XJO) has enjoyed a pretty decent day of trading this Tuesday. The ASX 200 closed at 7,503 points, up 0.17% for the day.

But let’s now check out the ASX 200 shares that are topping the trading volume charts today.

The 3 most traded ASX 200 shares this Tuesday

South32 Ltd (ASX: S32)

After appearing on this list yesterday, diversified ASX 200 miner South32 is back again with 19.75 million of its shares making their way around the market today.

With no major news or announcements out of the company today, we can probably assume this relatively high trading volume is the result of today’s share price movements.

South32 ended the day up 1.41% to $2.88 a share. Since last Friday, the company has gained around 5.5%. It’s probably this bump in valuation that is behind so many shares trading today.

Scentre Group (ASX: SCG)

ASX 200 real estate investment trust (REIT) Scentre is another share to check out today. This REIT has seen 20.54 million units change hands on Tuesday.

This is almost certainly the result of Scentre’s earnings report which was released this morning, and has elicited a strong response from investors.

At close of trading today, Scentre units were up a very pleasing 6.67% to $2.72 apiece. As my Fool colleague Bernd covered earlier today, this REIT reported a 28% rise in operating profits and has also announced the resumption of dividend distribution payments.

Pilbra Minerals Ltd (ASX: PLS)

As per usual, ASX 200 lithium producer Pilbara topped the trading volume charts this Tuesday, with a staggering 24.58 million Pilbara shares swapping hands. Like with South32, there was no major news or announcements out today.

However, the Pilbara share price has had quite a bumpy day. This morning, the company was up almost 5% but trended lower, before ending the day flat at $2.25 a share.

It’s likely this share price volatility that is behind the relatively large volume of shares bought and sold today.

The post Here are the 3 most traded ASX 200 shares this Tuesday appeared first on The Motley Fool Australia.

More reading

• Why the Coles (ASX:COL) share price has underperformed the ASX 200 in the last year
• Here are the top 10 ASX 200 shares on Tuesday
• Energy sector leading the ASX 200 shares on Tuesday
• ASX 200 midday update: Kogan crashes, Nanosonics rockets
• Scentre (ASX:SCG) share price leaps higher on 28% profits boost

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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The HUB24 Ltd (ASX: HUB) earnings result has lit a fire under the investment advice company’s share price. HUB24 shares rocketed more than 8% higher on Tuesday after the company announced a 53% jump in full-year profits.

Investors may be curious how today’s strong earnings result compares to some of HUB24’s peers. Let’s take a look at how it stacks up against rival platform provider Netwealth Group Ltd (ASX: NWL).

How do the HUB24 earnings compare to Netwealth?

In case you missed it, here are a few of the key takeaways from HUB24’s Tuesday update:

• Revenue up 34.4% on FY2020 to $110 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) up 47% to $36.2 million
• Funds under administration (FUA) up 237% to $58.6 billion
• A 5.5 cents per share fully franked final dividend, meaning the full-year dividend increased 43% to 10 cents per share.

Those impressive figures were enough to send the HUB24 share price soaring higher on Tuesday. In contrast, Netwealth shares finished the day only 0.78% higher following their rival’s strong results.

It’s something of a double whammy for Netwealth, after its share price slumped 5% following its own FY21 earnings update last Wednesday.

Here’s a quick summary of some of Netwealth’s key figures for FY2021:

• Total income up 17% from FY2020 to $144.9 million
• Platform revenue up 17% to $142 million
• EBITDA up 19% to $79.3 million
• Funds under administration (FUA) up 49.6% to $47.1 billion
• 9.5 cents per share fully franked final dividend, meaning a full-year dividend increase of 26.3% to 18.6 cents per share.

At first glance, Netwealth and HUB24’s earnings don’t look too dissimilar. However, it is a tale of two very different sets of expectations as HUB24 shares surged and Netwealth’s valuation slid lower.

Perhaps unsurprisingly, both company’s executives were keen to tout themselves as the leading investment advice platform in their respective releases.

HUB24 managing director Andrew Alcock had this to say after his company’s earnings result:

I am proud that HUB24 has been recognised as Australia’s Best Platform Overall with the highest level of adviser satisfaction.

Meanwhile, Netwealth’s joint managing directors Michael and Matthew Heine said:

We continue to gain industry recognition as the leading specialist advice platform provider.

Foolish takeaway

Both wealth management platform providers posted significant funds under administration growth throughout the year.

However, HUB24 earnings received a better response from investors with the company’s shares surging more than 8% today. They closed the day 7.43% higher at $27.90.

The post How does the HUB24 (ASX:HUB) earnings compare to Netwealth? appeared first on The Motley Fool Australia.

More reading

• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher
• HUB24 (ASX:HUB) share price gains on 43% bump to dividend
• Why the Netwealth (ASX:NWL) share price is up 9% on Thursday
• Here are the top movers on the ASX 300 today
• Why Bapcor, BHP, CSL, & Netwealth shares are tumbling today

Motley Fool contributor Ken Hall 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 Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. 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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Today, the S&P/ASX 200 Index (ASX: XJO) moved higher led by energy shares. The benchmark index finished 0.22% higher to 7,506.5 points. ASX-listed oil and gas companies were solid performers, helping pull the benchmark ahead.

However, the question is: which shares from the top 200 delivered the most green on the ASX today? Here are the ten stocks that delivered the biggest gains:

Top 10 ASX 200 shares countdown today

Looking at the top 200 listed companies, Uniti Group Ltd (ASX: UWL) was the biggest gainer today. Shares in the telecommunications company increased 9.16% after revealing a record full-year result. Find out more about Uniti Group here.

The next best performing ASX share out of the top 200 today was Event Hospitality and Entertainment Ltd (ASX: EVT). The tourism and event company’s shares climbed 7.09% to $14.19 as vaccination numbers increase across Australia. Uncover the latest Event Hospitality and Entertainment information here.

Today’s top 10 biggest gains were made in these ASX 200 shares:

ASX-listed company	Share price	Price change
Uniti Group Ltd (ASX: UWL)	$4.29	9.16%
Event Hospitality and Entertainment Ltd (ASX: EVT)	$14.19	7.09%
Scentre Group (ASX: SCG)	$2.72	6.67%
Flight Centre Travel Group Ltd (ASX: FLT)	$15.13	6.03%
Qantas Airways Limited (ASX: QAN)	$4.63	5.71%
Vicinity Centres (ASX: VCX)	$1.665	4.72%
Ampol Ltd (ASX: ALD)	$27.36	4.35%
The Star Entertainment Group Ltd (ASX: SGR)	$3.76	4.16%
Corporate Travel Management Ltd (ASX: CTD)	$22.10	4.15%
Regis Resources Ltd (ASX: RRL)	$2.565	3.85%

Our top 10 ASX 200 shares 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 200 shares on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher
• Event (ASX: EVT) share price soars 10% to a 52-week high
• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• Energy sector leading the ASX 200 shares on Tuesday
• ASX 200 midday update: Kogan crashes, Nanosonics rockets

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 owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The QBE Insurance Group Ltd (ASX: QBE) share price has been among the best performers on the ASX 200 in 2021.

Since the start of the year, the insurance giant’s shares have risen just over 40%.

Can the QBE share price keep on rising?

The good news for shareholders is that one leading broker still believes the QBE share price can keep rising from here.

According to a recent note out of Goldman Sachs, its analysts have a conviction buy rating and $13.41 price target on its shares.

Based on the current QBE share price of $12.05, this implies potential upside of 11% over the next 12 months before dividends.

Furthermore, Goldman is forecasting partially franked dividends per share of 37 cents in FY 2021 and then 58 cents in FY 2022. This represents yields of 3.1% and 4.8%, respectively, over the two financial years.

What did the broker say?

Goldman was very pleased with QBE’s performance during the first half of FY 2021 and notes that it delivered a result ahead of its expectations.

It commented: “QBE’s 1H21 cash NPAT of US$467mn was 41% ahead of our US$330mn estimate. DPS of A11c was however below our A19c estimate (interim payout ratio of 27%) while the balance sheet remains in good shape, with the PCA ratio at 1.73x (GSe 1.70x) and gearing at 31.1%.”

Overall, the broker believes its headline earnings are now representing underlying momentum. As a result, its analysts have upgraded their earnings estimates for the coming years.

It explained: “On balance, we upgrade our FY21-FY23 cash EPS by +13%/+5%/+3%, largely a function of reduced COVID costs and 1H releases in FY21, though stronger growth and margin in FY22/FY23.”

“We note QBE formally flagged an intention to increase growth asset exposure in its investment portfolio over the medium term. With excess capital seemingly earmarked for growth currently, we have not yet modelled any re-weighting, though note a shift from the current 7% growth asset mix to the 15% ceiling at current FUM (and a 50bps running yield) would equate to a normalised annualised NPAT uplift of c.US$100m,” it added.

All in all, the QBE share price may be smashing the market this year, but this leading broker believes it could continue doing so over the next 12 months.

The post Top broker says QBE (ASX:QBE) share price is a buy appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares we’re overweight in right now: fund
• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: New records just keep coming for the ASX 200
• 3 of the best ASX results from week two of reporting season
• These were the best performing ASX 200 shares last week

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 Brickworks Limited (ASX: BKW) share price has risen by 33% over the last year, beating the S&P/ASX 200 Index (ASX: XJO) return of 22.5%.

A lot has happened over the past year. The world learned of the efficacy/effectiveness of the COVID-19 vaccines that are now going into arms around the world. That may or may not explain some of the returns of the ASX 200 in the last 12 months, but each individual business has its own story.

What is influencing the Brickworks share price?

Company announcements and profit changes can have an influence on shorter-term and longer-term movements of the valuation of a business.

Brickworks runs a slightly different financial calendar to most businesses on the ASX. So it won’t be telling investors its FY21 result this month. But earlier this month Brickworks did provide an earnings update.

It announced that COVID-19 was impacting operations in both NSW and Queensland. Brickworks said that in June and early July its brick sales in NSW were approximately in line with local production capacity. However, dispatches were rapidly reduced by 80% during the pause in construction activity across Sydney in late July.

The partial re-commencement of construction activity in August saw brick sales improve, but were still at 50% of pre-lockdown levels. This caused storage yards to reach full capacity, leading the business to temporarily reduce production at two of its five brick kilns. Significant production volume is/was being sent south to meet the strong demand in Victoria.

Capital projects are also being impacted, such as its new masonry plant at Oakdale East where the commissioning process is being “severely disrupted”, with several critical technicians being stranded overseas because of a lack of inbound flights.

Development activity within the property trust is also being affected, with various Oakdale Estates being impacted by closures and reduced workforce numbers.

The Brickworks share price has fallen 6% since this announcement.

Where’s the positive news?

It’s not all COVID-19 negativity for Brickworks. These impacts in NSW were right at the end of FY21, so the impact in the previous financial year was immaterial. FY21 earnings before interest and tax (EBIT) is expected to be around 35% higher than FY20.

Brickworks also said that North American trading in July was slightly softer than forecast, so FY21 EBIT will be slightly below the prior year. But Brickworks has recently bolstered this region with the acquisition of the largest independent brick distributor in the USA, with the purchase of certain assets from Southfield Corporation, including Illinois Brick Company (IBC), for US$51.1 million.

IBC has 17 showrooms and distribution outlets across Illinois and Indiana. It did this because it will add scale and fills a gap within Glen Gery’s existing distribution network. It also underpins significant sales volume. Management believe there are significant growth opportunities and cost synergies available to Brickworks. It’s expecting to add 2% to earnings per share (EPS) in year one, excluding cost synergies and growth initiatives.

The Brickworks share price is up 13% since its record property earnings announcement

Brickworks shares have risen 12.8% since announcing on 9 June 2021 that it was expecting to report record property earnings in FY21.

A significant revaluation profit within its joint venture industrial property trust is expected to be around $100 million, leading to property underlying EBIT being between $240 million to $260 million.

There have been a number of significant industrial property transactions in western Sydney that have helped the valuations with accelerating industry trends towards online shopping and the increasing importance of well-located distribution hubs and sophisticated supply chain solutions.

Practical completion of the Amazon facility at Oakdale West is expected to occur in the first half of FY22. The even larger Coles Group Ltd (ASX: COL) distribution warehouse is under construction and completion is expected in early FY23.

The post Why the Brickworks (ASX:BKW) share price has beaten the ASX 200 in the last year appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares that could provide steady income in retirement
• Why the Brickworks (ASX:BKW) share price could still be a buy
• Brickworks (ASX: BKW) share price down 5% as operations curtailed
• Brickworks (ASX:BKW) share price on watch with US acquisition
• 2 ASX 200 shares that keep growing their dividends

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 owns shares of and has recommended Brickworks and COLESGROUP DEF SET. 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is taking off on Tuesday. Shares in the $2.85 billion travel agent aren’t alone in their ascent – with many other ASX travel shares experiencing a lift.

At the time of writing, the Flight Centre share price is trading 6.5% higher to $15.19. It appears the tourism sector is riding the coattails of a more optimistic day for COVID-19 briefings.

Lessening of limitations on the horizon

ASX shares with exposure to the tourism/travel industry have been worse for wear since the drastic resurgence in coronavirus case numbers stemming from the delta strain. As such, today offers somewhat of a reprieve for shareholders.

As part of her daily briefings, New South Wales Premier Gladys Berejiklian shared a perspective that might be refreshing for those in pandemic-pinched lines of work. The message was one of warning for those states relying on a ‘zero case’ approach. It also offered a glimmer of hope for an open NSW.

At this morning’s briefing, Premier Berejiklian stated:

Some states have zero cases and border closures, but every state will have to come out of that eventually.

Other states who have had zero cases for a long time, when they open their borders and welcome the international travel, welcome people from other states, the delta strain will take hold and that is why it is important to be prepared by getting high vaccine rates, ensuring the health system is in place to deal with that.

A major milestone for NSW’s vaccination rollout was hit today, with 6 million vaccine doses administered. The Premier noted this was equivalent to 60% of the population having one dose. Furthermore, 32% of the state is now fully vaccinated.

As a result, it is expected that the state will grant further freedoms to fully vaccinated people as early as Thursday this week.

NSW recorded 753 new locally acquired cases of COVID-19 in the 24 hours to 8pm last night. pic.twitter.com/S1yMf7bHD2

— NSW Health (@NSWHealth) August 24, 2021

https://platform.twitter.com/widgets.js

It seems investors might be speculating on the positive impact this could have on the broader tourism sector. In afternoon trade, the Flight Centre share price is soaring – along with Webjet Ltd (ASX: WEB), Corporate Travel Management Ltd (ASX: CTD), Helloworld Travel Ltd (ASX: HLO), and Qantas Airways Limited (ASX: QAN).

Flight Centre share price recap

Despite disruptions in its business activities, the Flight Centre share price has performed relatively in line with the broader S&P/ASX 200 Index (ASX: XJO). In fact, the company’s shares have regained ~70% from the peak of the COVID crash in March 2020.

However, the promise of eased restrictions for the fully vaccinated will be put to the test on Thursday.

This is when the NSW government has promised to make a further announcement on potential freedoms for the vaccinated and when Flight Centre’s FY21 full-year results are expected to drop. If nothing else, it will certainly make for an interesting day on the ASX share market.

The Flight Centre share price remains to be one of the most heavily shorted on the ASX.

The post Flight Centre (ASX:FLT) share price up 7% as travel shares rise on Tuesday appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• What Sydney Airport’s results could mean for Flight Centre (ASX:FLT) shares
• Why Beach, Bendigo & Adelaide Bank, Flight Centre, & Lendlease are tumbling lower
• Flight Centre (ASX:FLT) share price slips despite Rex (ASX:REX) agreement
• These are the 10 most shorted ASX shares

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. owns shares of and has recommended Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Helloworld Limited, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Pepper Money Ltd (ASX: PPM) share price is in the green today following the release of the company’s results for the first half of 2021.

Right now, the Pepper Money share price is $2.78, 6.92% higher than yesterday’s close.

Pepper Money share price jumps on 46% profit increase

Here’s how the loan provider performed over the first half of 2021:

• Statutory net profit after tax of $56 million – up 41.1% on that of the first half of 2020
• Ended the period with $16 billion of assets under management
• Lending assets under management up by 5.2% to $14.3 billion
• Record originations of $3.7 billion

Pepper Money’s first few months on the ASX were profitable.

The company reported net profit after tax, adjusting for initial public offering (IPO)-related costs, of $66.1 million. That represents a 57.3% increase on that of the first half of 2020.

The number of new mortgage values on its books increased by 33.9% to $2.8 billion over the half-year ended 30 June 2021.

Pepper Money’s asset quality remained strong. It reported its loss rates, excluding COVID-19 overlays, improved 9 basis points to 0.28% of lending assets under management over the first half.  

Additionally, its net interest margin improved 3 basis points to 2.59%. Pepper Money stated this reflected the increased scale of its asset finance business and ongoing improvements in its cost of funds.

Over the first 6 months of 2021, Pepper Money’s mortgage losses fell by 4 basis points to 0.01% of assets under management, excluding COVID-19 management overlays. Pepper Money states this shows the quality of its asset portfolio.

Additionally, its mortgage and asset finance arrears of more than 90 days reached pre-COVID-19 levels over the half-year.

Finally, over the half, Pepper Money finalised 2 residential mortgage-backed securities transactions. Together, they raised more than $1.5 billion of securitisation. Pepper Money also secured $700 million in warehouse capacity for prime mortgages.

What happened in the first half for Pepper Money?

We asked Pepper Money’s CEO Mario Rehayem about the last 6 months for the company and its share price.

IPO

Perhaps the most exciting news from Pepper Money over the 6 months ended 30 June 2021, was its debut on the ASX. Pepper Money’s IPO occurred on May 25, 2021.

Speaking on the company’s first few months on the public exchange, Rehayem said:

[Being a listed company] has been business as usual. We’re very focused on delivering our business strategy and pushing the boundaries on automation digital, and tools to supply the marketplace. Obviously, we came out of the gates and the share price isn’t as reflected from day one, but to be honest, that’s not in our control and our number one focus is to deliver on our business strategy.

At the time of writing, the Pepper Money share price has fallen 3.8% from its prospectus’ offering price of $2.89. Right now, shares in the company are trading for $2.78 apiece, 6.92% higher than their previous close.

Positive growth

While the share price hasn’t moved in the way Pepper Money’s initial investors might have hoped, it’s been a positive 6 months for the company. Rehayem outlined numerous achievements the loan provider has surpassed recently:

We’ve had quite a number of milestones. It has been a very celebratory 6 months. We celebrated our 21st anniversary, we listed on the ASX, we’ve settled more loans than we’ve ever done in our 21-year history. We’ve helped 10,500 self-employed customers in the first half to obtain a loan – which is a record 27,000 customers in total.

It’s just been milestone after milestone. It’s definitely been a great 6 months and we look forward to continuing these milestones in the second half.

Let downs

While Pepper Money hasn’t reported any major drawbacks, it hasn’t all been smooth sailing. Rehayem commented:

From a macro perspective, obviously, the lockdowns, that’s definitely been a low for us. But outside of that, our prepayments have been slightly higher than what we originally forecasted. The reasons for that are fairly obvious: it’s a very competitive market [with] record low interest rates, cash-back offers and incentive offers by a lot of the major banks, especially with the TFF [term funding facility] that they have offering very low fixed rates. So, we saw movements of people either paying down their loans with us, or looking to refinance a way to get record low interest rates elsewhere.

Because we are a business that is focused on looking after our customers, we have now shifted ahead with a huge focus on ensuring this scene is a learning experience for us and we’re looking to address the retention of our customers.

What did management say?

Commenting on Pepper Money’s IPO, and its share price’s downwards slide, Rehayem wasn’t concerned. He said:

We always knew coming out of the gates from the listing could be a little bit turbulent because of the macro environment, but we have a very solid business strategy. We have a 20-year proven track record through the cycle.

The foundation of this business is extremely strong, we’ve had 10 years of double-digit growth in the business… The business is extremely well managed, it has many levers and it’s diverse and flexible in the way it generates its revenue. The core segments that we play in have a huge corridor of growth, specifically the non-conforming segment of the market. Our technology is superior to our peers’, and we’ve invested very heavily into technology that’ll give us the scalability and efficiency that we need to continue growing for many years to come.

What’s next for Pepper Money?

Here’s what might drive the Pepper Money share price in FY22:

According to Rehayem, Pepper Money is set to continue its momentum, particularly as the Australian and New Zealand property markets are booming.

Additionally, the company’s investment into technology is making its business more efficient and negating much of the impact COVID-19 lockdowns may have otherwise had. Rehayem also highlighted some of the technological initiatives the company is working towards:

[Going forward] we’re focusing on the continual rollout of new products that will be distributed across our very extensive distribution footprint, across all of our asset classes both here in Australia and in New Zealand. We also have a number of initiatives that are coming out that will be focused on automation and digitisation. [These will] allow us to continue to scale up and keep a lid on our expenses.

As long as the market continues how it is, Pepper Money expects to bring in $120.7 million over 2021. It’s also looking to hand out its first ASX dividend in the second quarter of calendar year 2022.

The post Pepper Money (ASX:PPM) share price jumps 7% on ‘milestone after milestone’ 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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