In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to give back some of yesterday’s gains. At the time of writing, the benchmark index is down 0.25% to 7,473.6 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price has jumped a further 12% to $129.02. Investors have been buying the buy now pay later provider’s shares in response to a rise in the Square share price overnight. This is because the takeover proposal will see Afterpay shareholders receive 0.375 Square shares for every Afterpay share they own. As a result, any rise (or fall) in the Square share price will increase (or decrease) the value of the offer. I’ve explained this in more detail here.

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is up 2% to $1.10. This follows the release of the gold explorer’s drilling results from its Bellevue Gold Project. These latest results demonstrate the potential for further increases in the resource and mine life beyond its Stage 2 feasibility study.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 3% to $1.95. Today’s decline may have been driven by a positive broker note out of Macquarie. According to the note, the broker was pleased with the results of the lithium miner’s battery materials exchange (BMX) auction. This led to Macquarie retaining its outperform rating and $2.00 price target on the company’s shares.

Zip Co Ltd (ASX: Z1P)

The Zip share price has stormed 9% higher to $7.89. Investors continue to buy the buy now pay later provider’s after Afterpay’s takeover sparked hopes that Zip might receive an offer as well. Particularly given recent speculation that rival Klarna has been building a position in the company. This morning Citi retained its buy rating and $8.90 price target on the company’s shares. It notes that its Square-Afterpay deal increases the takeover appeal for Zip.

The post Why Afterpay, Bellevue Gold, Pilbara Minerals, & Zip are charging higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Zip (ASX:Z1P) share price is rocketing 8%
• Why ASX lithium shares are beating the iron ore majors – again
• Up another 12%, why the Afterpay (ASX:APT) share price keeps pushing higher
• ASX 200 midday update: Afterpay jumps again, Qantas stands down crew
• Afterpay share price surges on takeover. Oil Search, Santos do a deal. Scott Phillips on Nine’s Late News

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 Vital Metals Limited (ASX: VML) share price is up 4% in early afternoon trade.

We look at the ASX resource share’s latest rare earths drilling results below.

What assay results did Vital Metals report?

Vital Metals shares are gaining after the company reported outstanding first-pass assay results at its 100% owned Nechalacho Rare Earth Project in Canada.

According to the release, the results from its Tardiff Zones 2 and 3 could significantly extend the project’s mine life.

Of the 10 holes it drilled across Tardiff Zones 2 and 3, Vital said every one hit extensive mineralisation. Those included thick zones with total rare earth oxides (TREO) grades above 2%. The best results highlighted from Zone included:

• 1 metres at 3.03% TREO
• 0 metres at 2.05% TREO

Vital Metals plans additional drilling to fully define the Tardiff zones, which remain open in all directions.

Commenting on the results, Vital Metals managing director Geoff Atkins said:

Drilling results from Tardiff Zones 2 and 3 have shown the potential for Nechalacho to be a much larger rare earths operation than we anticipated. We completed the drilling at Tardiff as part of defining a Mine Plan for Stage 2 operations at Nechalacho, which will initially focus on Tardiff Zone 1.

But, with the results showing mineralisation in both Zone 2 and 3 remaining open, we will plan further drilling in these areas over the next year to get a better understanding of the mineralisation and determine if the three zones are connected.

The company reported it is commencing Stage 1 rare earth production at Nechalacho via ore sorting. It intends to mine its North T deposit in Stage 1 and focus on the Tardiff deposit in Stage 2, with plans to construct a large-scale rare earth mining and processing operation.

“With the commencement of production at Nechalacho, we are excited about the future of this project,” Atkins said. He added that it has the potential to grow into “one of the world’s best light rare earth projects”.

Vital Metals share price snapshot

Over the past 12 months the Vital Metals share price is up an impressive 400%. By comparison the All Ordinaries Index (ASX: XAO) has gained 28% over that same time.

Year-to-date the Vital Metals share price is up 67%.

The post Here’s why the Vital Metals (ASX:VML) share price is flying higher today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Vital Metals (ASX:VML) share price is flying higher today

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. Bernd Struben 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 Zip Co Ltd (ASX: Z1P) share price is off to a flying start today. At the time of writing, shares in the buy now, pay later (BNPL) provider are trading for $7.88 – up 8.84%.

Much like yesterday, Zip is following on from its BNPL compatriot Afterpay Ltd’s (ASX: APT) success in intraday trading.

The Afterpay share price is currently $129.00. That’s an incredible 12.4% higher today and 33.5% greater over the last 2 days.

As many are well aware, Afterpay is in the midst of a takeover bid by Square Inc (NYSE: SQ). Shares in square have risen 10% overnight and since Square will be acquiring Afterpay shares through scrip, it has increased the value of its bid for the Aussie BNPL leader.

Zip will become an Aussie BNPL leader

As Motley Fool has reported, once Square acquires Afterpay, Zip will be the largest BNPL provider on the ASX by market capitalisation. This may be another reason for the rising Zip share price.

Square will establish a secondary listing on the ASX via CHESS depository interests (CDIs) for the thousands of its new Aussie shareholders. It, however, is not exclusively a BNPL provider. The same applies to the Commonwealth Bank of Australia (ASX: CBA), which will launch its own BNPL service soon.

Competition in the sector is heating up. While there are the established players like Zip, Afterpay, and Sezzle Inc (ASX: SZL), among others, news recently broke that Paypal Holdings Inc (NASDAQ: PYPL) and Apple Inc (NASDAQ: AAPL) have entered, or will soon enter, the BNPL market.

The Zip share price fell on the news of Apple and PayPal entering the market, as did the rest of the BNPL sector.

Zip share price snapshot

One can see the volatile ride the Zip share price has gone on over the last year or so.

Over 6 months its share price is down 1.15% but year-to-date it’s up an incredible 39%. Over 12 months, the share price is up slightly less – 34%.

Zip’s 52-week, and all-time high, is $14.53. The current share price is about 45% lower than this milestone achievement.

The post Here’s why the Zip (ASX:Z1P) share price is rocketing 8% appeared first on The Motley Fool Australia.

More reading

• Up another 12%, why the Afterpay (ASX:APT) share price keeps pushing higher
• ASX 200 midday update: Afterpay jumps again, Qantas stands down crew
• Afterpay share price surges on takeover. Oil Search, Santos do a deal. Scott Phillips on Nine’s Late News
• Here are 4 sure-fire ways to catch the next 10-bagger
• Square up 10%. What does this mean for the Afterpay (ASX:APT) share price?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Apple, PayPal Holdings, Square, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple and PayPal 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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It’s an ugly day for the PointsBet Holdings Ltd (ASX: PBH) share price after the completion of its institutional placement and entitlement offer.

At the time of writing, shares in the sports betting company have tumbled 11.87% to an 8-month low of $9.95.

Why the PointsBet share price is getting slammed

Capital raising discount

PointsBet’s placement and entitlement offer will issue new shares at an 11.4% and 32.8% discount to its last closing price of $11.91 on Wednesday, 28 July.

The size and discount of the capital raising may negatively impact existing shareholders since it results in share dilution.

This means that existing shares reflect a smaller percentage of ownership and are, thus, less valuable.

Co-founder sell-down

Independent of the capital raising, PointsBet’s co-founders have elected to sell a portion of their holdings.

Co-founders Nick Fahey and Andrew Fahey will sell 2.0 million shares in aggregate or 15% of their holdings.

In addition, Group CEO Sam Swanell will also be selling 0.9% million shares, also 15% of his holdings.

PointsBet quarterly

Another factor impacting the PointsBet share price might be its fourth-quarter update which was announced during its trading halt.

The fourth-quarter update highlighted triple-digit growth across key operating metrics such as betting turnover, active clients and gross win.

However, PointsBet’s explosive growth comes with a hefty price tag, with the company experiencing a net cash outflow of $81.9 million in the fourth quarter.

Third capital raising in two years

PointsBet has proven itself as a cash hungry business, raising approximately $800 million in the last two years.

In October 2019, just five months after the company’s Initial Public Offering, it elected to raise $122.1 million to support marketing and client acquisition, product development and US business development.

By September 2020, PointsBet announced its second capital raising, seeking to raise $303 million to fund its deal with NBCUniversal.

PointsBet share price snapshot

PointsBet has now entered negative year-to-date territory, down 17% in 2021.

Its shares have slumped almost 50% from their all-time high of $18.13 on 16 February.

The post What’s driving the PointsBet (ASX:PBH) share price sharply lower? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Afterpay jumps again, Qantas stands down crew
• Why the PointsBet (ASX:PBH) share price is crashing 12% lower on Tuesday
• Brokers name 3 ASX shares to buy today
• Why is PointsBet (ASX:PBH) raising $400 million?
• PointsBet (ASX:PBH) share price halted after Q4 update

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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The Parkd Ltd (ASX: PKD) share price is racing past most ASX shares today with its emphatic rise. This comes after the construction technology company announced two important updates to the market on Tuesday morning.

At the time of writing, Parkd shares are swapping hands for 6.6 cents, up an astonishing 78.38%.

What did Parkd announce?

Investors are fighting to get a hold of Parkd shares following the company’s update on its opportunities in the car parks market.

In its first release, Parkd advised it has signed a memorandum of understanding (MOU) with the University of South Australia.

The framework enables Parkd to undertake a 90-day due diligence process to assess the feasibility to develop a multi-storey car park. The development opportunity is being considered at the University’s Adelaide central business district (CBD) site.

The terms of the MOU offer an exclusive 3-month period for Parkd to explore and evaluate the project’s economic viability.

In addition to that announcement, Parkd also provided a second release to the ASX. The company stated it has signed a binding heads of agreement (HOA) with Axiom Properties Ltd (ASX: AXI).

The HOA will see both parties seek opportunities within Australia for developing and constructing car parks in the private and public sectors.

During the 18-month term of the HOA, the partnership aims to use Axiom’s experience in funding property development. Furthermore, Parkd will employ its knowledge in delivering technical design and construction solutions.

Any awarded contracts are to be negotiated between the pair and will involve entering a formal agreement governing the project at hand.

Parkd chair Bronte Howson commented:

This partnership presents an exciting opportunity for PARKD to provide an alternate funding solution to traditional capital expenditure. Providing fully funded projects via AXIOM would be a game changer and will provide the impetus for PARKD to realise opportunities that are currently impeded by lack of available funding.

Parkd share price summary

Founded in 2016, Parkd designs lightweight concrete modular car parking systems. The company focuses on supplying and building multi-storey car parks for an array of retail centres, hospitals, airports, universities, and more.

In the past 12 months, the Parkd share price has stormed 230% higher, with year-to-date returns up 65%. The company’s shares reached a high of 8.5 cents in April 2021.

The post Why the Parkd (ASX:PKD) share price is soaring 78% today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Vital Metals (ASX:VML) share price is flying higher today
• Here’s why the Zip (ASX:Z1P) share price is rocketing 8%
• What’s driving the PointsBet (ASX:PBH) share price sharply lower?
• Why ASX lithium shares are beating the iron ore majors – again
• Up another 12%, why the Afterpay (ASX:APT) share price keeps pushing higher

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.

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The mining sector is dragging on the market this morning – but that’s not the case for ASX lithium shares which are trading higher.

The underperformance of the sector is primarily due to the fall the big ASX mining shares, which are all exposed to iron ore.

The Fortescue Metals Group Limited (ASX: FMG) share price dropped 2% to $23.91, the BHP Group Ltd (ASX: BHP) share price shed 1.6% to $52.85 and the Rio Tinto Limited (ASX: RIO) share price surrendered 1.2% to $131.62 at the time of writing.

Our largest miners were the main drags on the S&P/ASX 200 Index (Index:^AXJO) as it dipped 0.2%.

ASX lithium shares bucking the downtrend

However, the smaller ASX lithium shares are bucking the trend. The Galaxy Resources Limited (ASX: GXY) share price rallied 3.2% to $4.84 and Pilbara Minerals Ltd (ASX: PLS) share price added 2.1% to $1.95.

This rotation has been playing out in recent days and could continue for a little while yet.

This is because the outlook for both commodities have started to diverge – and quite rapidly.

Iron ore could fall deeper into bear market

The price of iron ore has fallen into a bear market and Morgan Stanley believes the steel making mineral has passed its peak.

“The iron ore price is falling, down to $181/t from a high of $222/t in early July, pulled down by rapidly slowing Chinese demand,” said the broker.

“We see further downside price pressure, as we expect the incremental market tightness that pushed iron ore through the $200/t barrier during 1H to fully unwind in 2H21.”

Morgan Stanley is forecasting the average price for the ore will tumble to US$160 a tonne by the 2021 December quarter. More worryingly, it warned that even that estimate may prove to be too optimistic.

Brighter outlook for ASX lithium shares

Meanwhile, the outlook for lithium continues to power up. Macquarie Group Ltd (ASX: MQG) noted that spodumene spot prices have surged to over US$1000 a tonne.

“Global passenger electric vehicle sales rose 153% YoY in June to 540k vehicles and 161% YoY in the first half to 2.4m vehicles,” said the broker.

“Macquarie’s Commodities Strategy Team believed that full-year 2021 sales should be well above 5mt and upgraded their forecast from 4.8m to 5.3m vehicles.

“An expected end-year surge in sales in Europe and China could take the final figure even higher.”

ASX shares to buy

In this context, Rio Tinto Limited’s (ASX: RIO) move to expand aggressively into lithium looked well timed. But it will be 2026 before its Jadar project will hit first production.

Macquarie’s top buys in the sector are the Mineral Resources Limited (ASX: MIN) share price, IGO Ltd (ASX: IGO) share price and Pilbara Minerals share price.

The post Why ASX lithium shares are beating the iron ore majors – again appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Afterpay jumps again, Qantas stands down crew
• This leading broker believes Fortescue Metals (ASX:FMG) shares can lift
• ASX 200 shares to shift earnings growth up a gear in FY22 – Expert
• Own BHP (ASX:BHP) shares? Here’s what to look for during reporting season
• Own Fortescue (ASX:FMG) shares? Here’s what to look for during reporting season

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, Galaxy Resources Limited, Macquarie Group Limited, and Rio Tinto Ltd. 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 Macquarie 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 Afterpay Ltd (ASX: APT) share price has continued to rally higher following its $39 billion takeover proposal from Square Inc (NYSE: SQ) on Monday.

At the time of writing, shares in the leading buy now pay later giant have added another 12.23% to $128.86 and up an astonishing 33.5% this week.

Get used to the Square and Afterpay share price moving together

The Square and Afterpay share prices are now intrinsically linked together following the takeover proposal.

The terms of the takeover is an all-scrip offer, where Afterpay shareholders will receive a fixed exchange ratio of 0.375 Square shares for each Afterpay share they own on the record date.

While the exchange ratio is fixed, the Square share price is the variable that could continue to move Afterpay, moving forward.

Square jumps 10% overnight

Square shares rallied strongly overnight in response to its Afterpay takeover proposal.

The Square share price rallied as much as 13.60% intraday to a near all-time high of US$280.88.

By market close, the company’s shares closed 10.16% higher to US$272.38.

The rally also witnessed significant volumes, with approximately 45.73 million shares changing hands, compared to Square’s 10-day average of approximately 10.74 million.

At a closing price of US$272.38, this would imply that one Afterpay share is worth US$102 or A$138.49.

Signs of life in the BNPL sector

The surging Afterpay share price appears to be bringing life back into the BNPL sector, with gains across the board.

Overnight, the Affirm Holdings Inc (NASDAQ: AFRM) share price rallied 14.90% to US$63.71.

While the likes of Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX: SZL) have rallied 15.21% and 5.13% in the last two days.

Even smaller, beaten up BNPL players such as Openpay Group Ltd (ASX: OPY), Laybuy Holdings Ltd (ASX: LBY) and Splitit Ltd (ASX: SPT) have jumped 8.42%, 15.12% and 10.87% respectively.

The post Up another 12%, why the Afterpay (ASX:APT) share price keeps pushing higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Afterpay jumps again, Qantas stands down crew
• Afterpay share price surges on takeover. Oil Search, Santos do a deal. Scott Phillips on Nine’s Late News
• Here are 4 sure-fire ways to catch the next 10-bagger
• Square up 10%. What does this mean for the Afterpay (ASX:APT) share price?
• Why the Afterpay (ASX:APT) share price can still rise (and fall) after the Square deal

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Affirm Holdings, Inc., Square, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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It has been a cracking past year for the NIB Holdings Limited (ASX: NHF) share price, climbing nearly 60%. Yet, one fund manager still considers the health insurer an attractive proposition.

At the time of writing, the company’s shares are down 0.7% to $7.13. Furthermore, the NIB share price is ~2% off its recently reset 52-week high of $7.30.

Could the NIB share price run higher?

Earlier this morning, I covered a few key takeaways from the Prime Value Opportunities Fund June update. In contrast, the team also operates an ‘Emerging Opportunities’ fund which focuses on ASX-listed companies outside the ASX 100.

Impressively, the Emerging Opportunities fund delivered a 42% return after fees in FY21. This represents an 8.8% outperformance of the S&P/ASX Small Ordinaries Index (ASX: XSO).

The fund openly dismissed speculation of a near-term market downturn. Rather, Prime Value reiterated its high-conviction stock-picking approach – noting that short-term weakness would present opportunities.

Speaking of opportunities, the fund highlighted the NIB share price as ‘very attractive’ on a two-to-three-year time horizon.

In its update, the Melbourne-based Australian investment manager said:

The consensus view is that profit margins are unsustainably high and it’s better to own the health providers as elective surgeries, etc. return. We agree NHF’s margins will fall but using long term, sustainable margins, the company is very attractively priced. And in the meantime it generates very high cashflows, boosting the balance sheet. To us, fundamental underlying value is more important than short term earnings trends.

Based on the current NIB share price, the company trades on a price-to-earnings (P/E) ratio of 32.9. For dividend investors, NIB health offers a 1.96% dividend yield.

Funds’ top holdings

Portfolio Manager Richard Ivers has put a heavy emphasis on financials, consumer discretionary, and industrials for the Emerging Opportunities fund.

However, the top five holdings include City Chic Collective Ltd (ASX: CCX), EQT Holdings Ltd (ASX: EQT), Mainfreight Limited (NZE: MFT), News Corp (ASX: NWS), and Uniti Group Ltd (ASX: UWL).

The post NIB Holdings (ASX:NHF) share price looks attractive long term – Expert appeared first on The Motley Fool Australia.

More reading

• NIB Holdings (ASX:NHF) share price hits 52-week high as chairman retires
• NIB Holdings (ASX:NHF) share price hits new 52-week high today

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 recommended NIB Holdings 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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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.

What happened

Wild fluctuations in the share price of fintech company Affirm Holdings (NASDAQ:AFRM) continue. After skyrocketing in value following its IPO in January, Affirm has been trending downwards, and a widespread tech growth-stock sell-off in the spring didn’t help. Shares were down 16.4% during the month of July, valuing the buy-now, pay-later company at a market cap of just over $17 billion at the end of the month.

So what

Affirm had started to make up some ground in June after it announced a partnership with e-commerce software giant Shopify (NYSE:SHOP). Specifically, Affirm will be powering the Shop Pay Installments service, giving potentially many tens of thousands of merchants the ability to offer flexible payment terms to consumers and capitalizing on the fast-growing, buy-now, pay-later (BNPL) movement.

But Affirm isn’t alone in this nascent industry. PayPal Holdings (NASDAQ:PYPL) has a similar product, and fellow BNPL upstarts Klarna and Afterpay are also making waves. Though it’s growing fast, Affirm still operates at a loss, so it’s no surprise shares took another leg down in July in volatile trading action.

However, the stock came roaring back on the first trading day of August after Square (NYSE:SQ) announced on Aug. 1 it’s acquiring Affirm’s peer Afterpay (OTC:AFTP.F) for $29 billion. Affirm nearly made up all the ground it lost in July following Square’s announcement.

Now what

Speculation is swirling that Affirm could become an acquisition target as well. Digital payment and financial service technologists are quickly adding new capabilities to their suite of services to attract new users, and Affirm’s torrid pace of growth (83% year-over-year increase in gross merchandise volume to $2.3 billion, in the first quarter of 2021) would be a valuable asset to the right firm.

For now, though, Affirm is still independent and finding lots of new partnerships to unlock its full potential. Whether it becomes a takeover target, this is a top name in fintech to keep an eye on. Affirm will announce results on Sept. 9, in the fourth quarter of fiscal 2021.

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

The post Why shares of Affirm Holdings were down over 16% in July appeared first on The Motley Fool Australia.

More reading

• Here’s why Affirm Holdings was up big on Monday
• Why the Afterpay (ASX:APT) share price is in the green today
• Afterpay (ASX:APT) share price is higher despite the sharp ASX 200 selloff
• As markets fall, big business fights back against disruptive growth stocks
• Why the Afterpay (ASX:APT) share price is crashing 9% on Wednesday

Nicholas Rossolillo and his clients own shares of PayPal Holdings, Shopify, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Affirm Holdings, Inc., PayPal Holdings, Shopify, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long January 2023 $1,140 calls on Shopify, and short January 2023 $1,160 calls on Shopify. The Motley Fool Australia has recommended PayPal Holdings. 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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The Good Drinks Australia Ltd (ASX: GDA) share price is up after the company released its unaudited annual results.

The company reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $10.7 million and $51.6 million of revenue.

Right now, the Good Drinks Australia share price is 8.9 cents, 3.53% higher than its previous closing price.

Additionally, more than 2.9 million Good Drinks Australia shares have swapped hands today. For comparison, the average number of Good Drinks Australia shares swapping hands per month is 288,399.  

Let’s take a closer look at the unaudited results for the 2021 financial year from Australia’s largest independent drinks manufacture.

The financial year just been

The Good Drinks Australia share price is gaining after the company released its results from a successful financial year.

Good Drinks Australia is the company behind beer, cider, and beverage brands Coopers, Stone & Wood, Burleigh Brewing, Young Henry’s, Matso’s, Single Fin, and others.

Over the financial year just been, Good Drinks Australia’s EBITDA increased by a whopping 1,683% compared to that of the previous financial year. Its revenue also increased by 40% when compared to the prior period, while its gross profit improved 69%.

The volume of the company’s own-brand drinks sold increased by 45%. It sold 17.1 million litres of consumable liquids, 11.4 million litres – including more than 1 million cartons – of which were bottled by its own brands.

Its Single Fin brand also surpassed a milestone 1 million cartons sold during the period. Single Fin is Western Australia’s most popular craft beer.

The company reported a 30% growth rate in distributions on Australia’s eastern coast.

Its total production volume for the 12 months ended 30 June was 19.8 million litres – 53% more than its production during the 2020 financial year.

The company’s Atomic Beer Project Redfern venue recorded an EBITDA loss of $500,000 due to COVID-19 restrictions implemented during its first year of operations.

The company is also building a venue for its Gage Roads brand. The build’s expected to cost $10 million. It will be funded through a $12.5 million debt facility.  

Good Drinks Australia share price snapshot

The Good Drinks Australia share price has been performing well on the ASX lately. It has gained 10% year to date. It is also 76% higher than it was this time last year.

The company has a market capitalisation of around $108 million, with approximately 1.2 billion shares outstanding.

The post Here’s why the Good Drinks Australia (ASX:GDA) share price is gaining appeared first on The Motley Fool Australia.

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• Why the Comet Ridge (ASX:COI) share price is rocketing up 22% today
• Mayne Pharma (ASX:MYX) share price drops on class action
• Santos (ASX:STO) share price wobbling on news of Mahalo project
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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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