The PointsBet Holdings Ltd (ASX: PBH) share price is pushing higher on Friday. This comes after the sports betting company announced two positive updates to the ASX this morning.

At the time of writing, PointsBet shares are up 1.99% to $12.33.

PointsBet launches iGaming

Investors appear pleased with the company’s latest news, bumping up PointsBet shares.

In its release, PointsBet advised that its wholly-owned subsidiary PointsBet New Jersey LLC has been given the approval to commence iGaming operations. The green light came from the New Jersey Department of Gaming Enforcement (NJDGE).

Without hesitation, the company has immediately launched its proprietary iGaming platform in the state.

This follows the inaugural launch of iGaming operations in the state of Michigan on 5 May 2021.

PointsBet noted that iGaming revenues across the United States have grown significantly over the last 3 years. This is due to the successful repeal of the Professional and Amateur Sports Protection Act in May 2018.

Across New Jersey, Pennsylvania, Michigan, and West Virginia, iGaming revenue has almost reached US$900 million in the 2021 June quarter. When looking at an annualised amount, this equates to more than US$3.5 billion per year.

PointsBet Group CEO and managing director, Sam Swanell commented:

We are thrilled to be able to expand our iGaming presence in the United States and bring our proprietary online casino product to the robust New Jersey market. The continued growth of our iGaming presence further advances our ability to acquire and retain premium clients, complementing our existing sports wagering products.

CEO PointsBet Canada appointment

In further news, PointsBet announced that it has appointed Scott Vanderwel as its CEO for PointsBet Canada.

Mr Vanderwel previously served as senior vice president for the Canadian communications and media company, Rogers Communications. His role oversaw corporate strategy, operational improvement, and digital operations.

Prior to this, Mr Vanderwel led the Canadian practice for Monitor Group, a global business strategy consultancy, later acquired by Deloitte.

Mr Vanderwel will assume the PointsBet Canada position effective on 17 August 2021.

PointsBet Group CEO and managing director, Sam Swanell went on to further add:

We’re thrilled that Scott has agreed to serve as the first CEO of PointsBet Canada and help us build a team and a business strategy that can serve the new Canadian market with the same sort of creativity and customer-focus that our clients in the U.S. and around the world have come to expect from PointsBet.

PointsBet share price snapshot

Since reporting its half-year results in February, PointsBet shares have travelled sideways. The company’s share price is sitting in the middle of its 52-week range of $5.16 to $18.13. In 2021, PointsBet shares are up marginally, 5%.

PointsBet commands a market capitalisation of roughly $2.5 billion, with almost 208 million shares on issue.

The post Here’s why the PointsBet (ASX:PBH) share price is on the rise appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX growth shares analysts love
• Why Credit Corp, Oil Search, Pilbara Minerals, & PointsBet are charging higher
• PointsBet (ASX:PBH) share price rises on bullish broker note
• PointsBet (ASX:PBH) share price up 3% after announcing plans to enter Arizona
• 2 ASX growth shares analysts rate as buys

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. 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.

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

The Endeavour Group Ltd (ASX: EDV) share price is one to watch this month.

Shares in the Aussie drinks retailer have edged lower this morning — down 0.16% to $6.42 — but have managed to climb 7% in the past month. That may come as a surprise to many given we’re in the middle of “Dry July”.

What does Dry July mean for the Endeavour share price?

For those that don’t know, Dry July is a campaign to raise awareness and funds for people affected by cancer. People raise money by stopping alcohol consumption for the month and being sponsored.

One might think this could see a dip in alcohol sales throughout the month. Endeavour owns and operates popular alcohol retailers including Dan Murphy’s and BWS and many hospitality venues. However, the Endeavour share price has thus far been largely unaffected in July.

One thing to keep in mind is that share markets are inherently forward-looking. Investors are largely focused on future valuations and returns they can expect from their holdings. That means that immediate events may not always have the same effect as factors that could influence earnings more permanently going forward.

Another reason for the Endeavour share price resiliency is that Dry July is not an unforeseen event. Investors should factor in seasonal trends, including any impact from Dry July, in their earnings expectations.

The Endeavour share price listed on the ASX one month ago on June 24 as part of a spin-off from Woolworths Group Ltd (ASX: WOW). The company closed its first trading day with a $10.8 billion market capitalisation which has grown to $11.5 billion at the time of writing.

Foolish takeaway

The Endeavour share price has edged higher since its recent IPO. That’s despite factors such as Dry July and even COVID-19 restrictions impacting on hospitality operations.

However, the flip side is that lockdowns could actually boost alcohol sales and household consumption like we saw in March 2020.

The post Has Dry July hit the Endeavour (ASX:EDV) share price? appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 shares are winning from latest retail trade figures?
• The Woolworths (ASX:WOW) share price is surging to record highs
• Woolworths (ASX:WOW) share price rises amid $4m start-up support
• Leading brokers name 3 ASX shares to sell today
• Woolworths (ASX:WOW) share price outperforms following digital wallet launch

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. 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/2V89Hm5

The Poseidon Nickel Ltd (ASX: POS) share price is soaring after the company released the Definitive Feasibility Study (DFS) for its Windarra Gold Tailings Project.

The company expects the project’s gold tailings to provide a cash flow it can invest into its nickel production.

Right now, the Poseidon Nickel share price is 13 cents, 15.45% higher than its previous closing price.

Let’s take a closer look at today’s news from the Western Australia-based nickel producer.

Poseidon’s Windarra DFS

Windarra has been found to have an ore reserve of between 5.54 and 5.73 megatons, with a grading of 0.84 grams of gold per tonne and 2.1 grams of silver per tonne.

This equals around 150,000 ounces of gold and 375,000 ounces of silver.

Depending on the mining method used, Windarra could produce between approximately 53,500 and 55,200 ounces of gold over a 45-month period.

The company says the project’s DFS has found it to be profitable. Poseidon is now looking for a partner to help them bring Windarra into production.

The DFS found both hydraulic mining and amphibious dredging to be viable mining methods for the project.

Windarra will likely cost between $25.8 million and $29.5 million to develop. It has an expected net operating cash flow of $30.6 million and an all-in sustaining cost of $1,393 per ounce.

Therefore, the company believes it would take between 27 and 28 months from the start of construction to pay back the cost of the project’s development.

Windarra has received ministerial approval. It also has environmental approval, conditional upon its mining proposal being approved within 6 months.

Poseidon Nickel share price snapshot

The Poseidon Nickel share price has been performing well on the ASX lately.

It has gained 81% in 2021. It is also 323% higher than it was this time last year.

The company has a market capitalisation of about $365 million, with approximately 2.8 billion shares outstanding.

The post The Poseidon (ASX:POS) share price is rocketing 15% today appeared first on The Motley Fool Australia.

More reading

• Is the FAR (ASX:FAR) share price really up 12,000% today?
• Bigtincan (ASX:BTH) share price jumps 9% on quarterly results
• A record high for the ASX in the middle of a lockdown?
• TGA approves Pfizer vaccine for kids aged 12-15 years old
• Zip share price falls, Pilbara Minerals flies. And the BHP share price gets a Tesla bounce. Scott Phillips on Nine’s Late News

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/3BtWzIR

Investors may be wondering what’s going on with the FAR Limited (ASX: FAR) share price on Friday.

This morning, trading platforms show that the oil and gas explorer’s shares are up a whopping 12,000% to $1.32.

To put that in context, if you invested $10,000 into an ASX share and it gained 12,000%, your investment would be worth a cool $1.2 million.

Is the FAR share price actually minting millionaires today?

The answer to this question, unfortunately, is a resounding no.

The reason the FAR share price is showing as being up 12,000% on Friday is that it has now completed its share consolidation.

Share consolidations are not very common on the Australian share market. In fact, share splits are far more common.

A share split is often undertaken by a company when they want to boost share liquidity or make share prices more attractive. For example, Berkshire Hathaway has resisted calls for years to undertake a share split. As a result, you need a massive US$417,800 to buy a single Berkshire Hathaway Class A share. This is unattainable for most investors.

Pushpay Holdings Ltd (ASX: PPH) is an example of a company that has split its shares recently. It did this to boost liquidity.

It is important to note that although the share price may change during a split, the value of a holding does not. If you had 1,000 shares at $1 per share (total value of $1,000), you would have 2,000 shares at 50 cents per share (still with a total value of $1,000) following a 2-1 split.

What is FAR doing?

FAR has undertaken a share consolidation or reverse share split to bring its share price up to a more tradable level.

Prior to the consolidation, the FAR share price was trading at 1.1 cents. This means that a move to 1.2 cents would result in a 9% gain and vice versa if it went the other way. These sorts of swings are not ideal for investors and it appears as though management felt the same way.

As a result, it has consolidated the issued capital of FAR on the basis of one share for every one hundred shares.

This means that if you owned 100 shares yesterday, you would now own a single share at the current FAR share price. And except for intra-day movements, the value of your holding would have remained the same.

The post Is the FAR (ASX:FAR) share price really up 12,000% today? appeared first on The Motley Fool Australia.

More reading

• The Poseidon (ASX:POS) share price is rocketing 15% today
• Bigtincan (ASX:BTH) share price jumps 9% on quarterly results
• A record high for the ASX in the middle of a lockdown?
• TGA approves Pfizer vaccine for kids aged 12-15 years old
• Zip share price falls, Pilbara Minerals flies. And the BHP share price gets a Tesla bounce. 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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. 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/3hXYnST

The Bigtincan Holdings Ltd (ASX: BTH) share price is soaring today after the company delivered its June quarter results.

Bigtincan shares opened at $1.07 before pushing 8.96% higher to $1.15 at the time of writing.

Bigtincan share price rallies

The sales enablement platform provider reported customer cash receipts for the June quarter of $14.7 million. This is a 40% increase on the prior corresponding period (pcp).

The company said “overall the quarter showcased a seasonally strong quarter with cash receipts up 20% from Q3 FY21, as Bigtincan continued to see strength in its enterprise-focused business model”.

Overall cash receipts for FY21 increased 29% on pcp to $41.9 million (adjusted for multi-year payments/contracts).

Pleasingly, the $41.9 million in FY21 cash receipts represents a 117% conversion against the company’s initial annual recurring revenue (ARR) of $35.8 million. The company cites this as a “strong execution of cash collection as well as the creditworthiness of our enterprise customers”.

Bigtincan reported ARR of $53.1 million at the end of FY21, or a 48% increase against the pcp. This growth was underpinned by “a combination of the company’s organic growth engine with top of the pipeline lead generation returning to pre-pandemic levels, and successful M&A adding new customers with increasing cross sell and upsell opportunities”.

FY21 revenue expectations

Reporting season is typically an exciting time for the Bigtincan share price. The 1H21 and FY20 results witnessed a significant -8.7% and 14.3% move in Bigtincan shares.

According to today’s announcement, the company is expecting audited revenue for FY21 to be in excess of $43.5 million.

This figure is in line and towards the upper end of its guidance of $41 million to $44 million.

Major customer wins

High-profile wins have been a driver of the Bigtincan share price in the past. Contract wins include US telco giant T-Mobile, and US based global financial services company, John Hancock.

In today’s announcement, the company highlighted notable customer wins for the June quarter include Fujitsu, AirFrance and Uber Eats.

In addition, Bigtincan said it continued to experience the “benefits of the land and expand business model with expansions in key customers including Allurion, BT Openreach, Genentech, Peter’s Surgical, Sage Publishing, and WL Gore”.

Management commentary

Commenting on another quarter of growth and acquisitions, Bigtincan CEO David Keane said:

This quarter the team executed globally to deliver strong results demonstrating the progress of our business model, strong underlying unit economics, and benefits of our organic growth engine combined with smart M&A to continue our mission of creating the buying experience of the future for our customers’ customers.

Bigtincan share price up in 2021

The Bigtincan share price is up 5% year-to-date.

Despite underperforming the S&P/ASX 200 Index (ASX: XJO), which is up 10.07% this year, Bigtincan’s performance is better than the broader tech sector.

The S&P/ASX 200 Info Tech (INDEXASX: XIJ) index has surprisingly slipped almost 4% in 2021.

The post Bigtincan (ASX:BTH) share price jumps 9% on quarterly results appeared first on The Motley Fool Australia.

More reading

• Why Bigtincan, Oil Search, Opthea, & Xref shares are racing higher
• Bigtincan (ASX:BTH) share price storms higher on T-Mobile contract update
• 4 fast-growing ASX small cap shares that you may have overlooked

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 BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. 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/3eHJ1jh

Half the country is in lockdown.

And yet, the ASX hit an all time high yesterday.

What gives?

Don’t they know about COVID?

Haven’t they seen the retail sales numbers?

Don’t they know many economists are now predicting the economy to shrink this quarter?

(And that a small handful of them have dared say ‘double dip recession’ out loud?)

Even the PM felt it necessary to tell us we wouldn’t go into recession, answering a question no-one actually asked.

And — I repeat — the ASX hit an all time record close yesterday afternoon.

Whatever the market’s on, I want some!

Except that, yep, I jest.

I know what the market’s on.

I’m on it too.

The good news? It’s legal.

And far from having negative side effects, I reckon these are side effects you should line up for.

Now, we know investors tend to be way too short-term in nature. So I want to share some maths, to help you avoid the groupthink that often derails markets.

Those maths were spelled out, clearly, by one of the doyens of investing; Wharton professor, Jeremy Siegel in a podcast last year:

“I even said, let’s go terrible, this is so bad, it wipes out hundred percent of S&P earnings. But let’s assume in 2021 we get back to only 2019 levels, stock market should go down five, six percent. I think that’s what the math shows.”

That fall in profits — spoiler alert — didn’t happen.

That didn’t stop the market falling a ridiculous 38% at one point, of course. I told you to stay the course, and even keep buying.

I hope you did.

But that is in the past.

I tell the story to explain the current highs.

It seems an almost-certainty that, despite current lockdowns impacting half of the country, life will again return to normal at some point.

Not as soon as we’d like, of course.

But it’ll get there.

And when it does?

You really reckon the economy will be permanently harmed, never again to grow?

Nah, me either.

And so, with a little hindsight to help, investors seem to be getting this one roughly right.

And that’s why the ASX is hitting new highs.

Those side effects I mentioned earlier?

Well, optimism, for a start. The benefit of history, for those who care to learn from it.

The reminder that, every single time in modern history, ‘this too shall pass’ has lead to larger economies, more profitable companies and, well, human progress.

How are those for some positive side effects?

Of course, while many worried when markets were falling, there’s the ‘equal and opposite’ reaction when markets are high: “Shouldn’t we wait for a fall?”

I hope, dear reader, you see the problem here.

If you’re not going to buy when markets are falling, and not going to buy unless markets are falling… well, that doesn’t give you much, does it?

In the meantime?

In the meantime, the ASX has gained around 9% per annum, over the last 30 years, according to fund manager Vanguard.

While people were worried about tops and bottoms, rises and falls, booms and busts… the bigger picture shows a slow, steady grind — punctuated with short bursts of excitement and despair — higher.

And higher.

And higher.

One hypothetical $10,000 investment, made 30 years earlier, was worth $130,000 on June 30 last year. (The market is up even more, since then, but we’ll have to wait for Vanguard’s updated chart, hopefully out in the next month or so, to see that impact!)

And that $130,000 assumes you didn’t add a single, extra, dollar.

If you did?

Well, you can imagine what you might have today.

Or, put another way, cast your mind back to 1990 (if you don’t remember 1990, you have my eternal envy!).

It was the eve of the early 1990s recession. There were plenty of reasons not to invest.

Indeed, in the first year or so of our 30 year period, shares fell.

Hard.

And yet, they recovered to turn $10,000 into $130,000.

Oh sure, with hindsight, I can tell you exactly when you should have invested, and not.

But I know this with absolute certainty.

Had I been doing this gig in 1990, I would have told you to invest.

Would I have been wrong?

In the short term, it might have seemed so.

In the fullness of time?

Well, if you’d invested $10,000 at the time, and didn’t want that $120,000 profit over the subsequent three decades, I’d have happily taken it off your hands.

If that’s ‘wrong’, then I hope I’m wrong a lot more.

Oh, people will tell me to time the market.

They’ll say I should wait for this indicator or that.

They’ll tell me the market is too high (I know… it’s happened every year of the past 10 I’ve been in this job!).

They’ll assume they’re smarter than me.

Than the market.

Than history.

That’s okay. They’re welcome to it.

Me?

I’m going to remain fully invested.

I’m going to ride the waves.

I’m going to cop losses on the chin (but I’ll be adding regularly, so I’ll get some bargains at the same time!).

I’m not going to try to outsmart the market.

I’m not going to try to predict the unpredictable. (Even the very idea is crazy, when you think through the logic.)

I’m just going to invest.

And keep investing.

I’m going to look for attractive businesses at attractive prices.

(If you prefer to just add money regularly to broad market ETFs, that’s cool, too.)

I’m going to add money regularly.

And I’ll watch the pundits with equal measures of amusement and exasperation.

The former, because it’s just funny.

The latter, because I know it’ll often lead people astray.

If this reminds you of the Tortoise and the Hare, you’re on the right track, by the way.

Oh, and I’ll keep writing these pieces.

Because I’ve benefited from the very same knowledge.

And I want to pay it forward.

Have a great weekend.

Fool on!

The post A record high for the ASX in the middle of a lockdown? appeared first on The Motley Fool Australia.

More reading

• TGA approves Pfizer vaccine for kids aged 12-15 years old
• Zip share price falls, Pilbara Minerals flies. And the BHP share price gets a Tesla bounce. Scott Phillips on Nine’s Late News
• Why Moderna topped the market on Thursday
• Why the Evolution (ASX:EVN) share price is charging higher today
• Pendal Group (ASX:PDL) share price edges lower despite positive update

Motley Fool contributor Scott Phillips 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/3rxilXM

The Pfizer Inc. (NYSE: PFE) COVID-19 vaccine has been approved for use in children aged 12-15 years in Australia.

The Therapeutics Goods Administration (TGA) made the decision late last night. Previously, COVID vaccines were only approved for those over the age of 16.

The TGA said in a statement:

“(Approval) has been made following careful evaluation of the available data supporting safety and efficacy, including clinical studies with adolescents 12 to 15 years of age.”

The highly infectious delta variant is spreading in Australia, including in children. This is unlike previous strains, so today’s news will provide options for worried parents.

However, the TGA says:

“Continued approval depends on the evidence of longer-term efficacy and safety from ongoing clinical trials and post-market assessment.”

Pfizer replaces AstraZeneca as vaccine du jour

Australia is ranked last for the percentage of people fully vaccinated in the Organisation for Economic Co-operation and Development (OECD), and second last for people who have just one dose of the vaccine.

The federal government was relying on the bulk of supply to come from locally CSL Limited (ASX: CSL) manufactured AstraZeneca plc (LON: AZN).

However, emerging evidence of an extremely rare blood clotting disorder caused by the vaccine led to the government’s expert advisory body, ATAGI, to recommend only those aged over 50, later 60, should take the vaccine.

Large swathes of Australians, including older residents, are reluctant to take the vaccine. Instead, they are waiting for more Pfizer vaccine.

The problem is we have too much AstraZeneca and not enough Pfizer vaccine.

The government acted to double the supply of Pfizer, as well as order Moderna Inc (NASDAQ: MRNA) vaccine as well. The bulk of this additional supply will arrive in the fourth quarter of this year.

The federal government has indemnified GPs who administer AstraZeneca in an attempt to get more jabs in arms.

It is available to those under 40 years who choose to take the jab at their doctor’s office.

While today’s news is positive, there is no expectation that children will be able to get inoculated any time soon.

Federal Health Minister, Greg Hunt said:

“Our plans are in place to roll out what is more likely, on the early advice I have, is that they will fast-track vaccines for 12- to 15-year-olds for the immunocompromised children or those with underlying health conditions,” Hunt told Channel 7.

Other children will need to wait, along with adults, for more supply of Pfizer most likely in September or October.

The post TGA approves Pfizer vaccine for kids aged 12-15 years old appeared first on The Motley Fool Australia.

More reading

• Why Moderna topped the market on Thursday
• 2 blue chip ASX 200 shares rated as buys
• What is the outlook for the CSL (ASX:CSL) share price?
• I’m investing for my kids. Any advice?
• Polynovo (ASX:PNV) share price bounces off 10-month lows, up 3% today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. 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/2UBJNY4

Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Tuesday night to discuss the fall of Zip Co Ltd (ASX: Z1P), despite triple-digit growth, the continued surge of the Pilbara Minerals Ltd (ASX: PLS) share price, BHP Group Ltd (ASX: BHP)’s deal with Tesla Inc (NASDAQ: TSLA) and a surge in our trade balance, while payroll numbers drop.

The post Zip share price falls, Pilbara Minerals flies. And the BHP share price gets a Tesla bounce. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why Kogan, Service Stream, Whispir, & Zip shares are sinking
• Here are 3 ASX 200 shares flying around the markets today
• Zip (ASX:Z1P) share price down 7% despite crypto plans and positive outlook
• Bitcoin gains after Musk, Wood, and Dorsey spruik the crypto

Motley Fool contributor Scott Phillips 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 Tesla and ZIPCOLTD FPO. 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/3wW5BuF

The Evolution Mining Ltd (ASX: EVN) share price has returned from its trading halt and is pushing higher.

At the time of writing, the gold miner’s shares are up 3% to $4.20.

Why is the Evolution share price pushing higher?

Investors have been bidding the Evolution share price higher today after responding positively to its acquisition announcement yesterday.

That announcement revealed that the company has signed an agreement with Northern Star Resources Ltd (ASX: NST) to acquire its assets in the Eastern Goldfields of Western Australia for $400 million.

These assets include a 100% interest in the Kundana Operations, a 51% interest in the East Kundana Joint Venture, a 100% interest in certain tenements comprising the Carbine Project, and a 75% interest in the West Kundana Joint Venture.

Management believes the assets represent an important strategic opportunity for Evolution to consolidate the region, optimise the value of its existing infrastructure, and capture significant operational synergies. It highlights that the main acquisition assets are within 8km of Evolution’s Mungari Operations.

Why were its shares in a trading halt?

The Evolution share price was placed in a trading halt so that the company could launch an equity raising to fund the acquisition.

According to an update today, Evolution has successfully completed a $400 million fully underwritten institutional placement at a price of $3.85 per new share. This represents a discount of 5.4% to where the Evolution share price was trading prior to its halt.

A share purchase plan will now be undertaken, aiming to raise a further $50 million. This will be at the lower of the placement price or a 2.5% discount to its five-day volume weighted average price at the closing date.

What else?

Evolution also notes that ministerial approval has now been received under the WA Mining Act. This will allow Northern Star to transfer legal title of the assets to Evolution, which means the transaction is now unconditional. As a result, management expects completion to occur in late August.

Evolution’s Executive Chairman, Jake Klein said: “We are delighted with the level of support from shareholders for the Institutional Placement, reflecting their endorsement of this pivotal transaction that will transform Mungari to establish the operation as the fourth cornerstone asset in the Evolution portfolio.”

One broker that was pleased with the acquisition is Credit Suisse. This morning the broker upgraded Evolution’s shares to an outperform rating with an improved price target of $4.70. It has made double digit earnings per share estimate upgrades to reflect the acquisition.

The post Why the Evolution (ASX:EVN) share price is charging higher today appeared first on The Motley Fool Australia.

More reading

• Are these ASX 200 gold miner shares buys?
• 5 things to watch on the ASX 200 on Friday
• Why the Northern Star (ASX:NST) share price is on watch today
• Why the Evolution (ASX:EVN) share price is in a trading halt
• 5 things to watch on the ASX 200 on Thursday

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.

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

The Pendal Group Ltd (ASX: PDL) share price is in negative territory today despite a positive update in relation to its recent acquisition.

At the time of writing, the fund manager’s shares are down 0.50% to $8.

Let’s take a closer look at what the company announced to the ASX this morning.

What did Pendal announce?

According to the release, Pendal advised it has completed the strategic acquisition of Thompson, Siegel & Walmsley LLC (TSW).

Founded in 1969, TSW is an investment management and advisory firm, headquartered in the United States. The group operates primarily in the long-only equity and fixed income asset classes for its diverse client base.

Following the early acquisition achieved, Pendal revealed this is a result of the cultural and commercial alignment of both companies.

Pendal expects that its United States Funds Under Management (FUM) will now more than double to $62.5 billion. This brings the total group FUM to $139.3 billion, a 31% increase as a result of the takeover.

Earnings per share (EPS) is forecasted to be double digit accretive within the first full-year of running operations.

TSW CEO, John Reifsnider has been appointed to lead Pendal’s consolidated business as well as joining its Global Executive Committee.

Pendal group CEO, Nick Good commented:

We are thrilled to welcome the TSW team and its clients to Pendal Group. Client support has been incredibly strong, with 96% TSW client consent received in just 11 weeks. It is testament to the compatibility and drive of the two organisations and their teams that we have completed the acquisition well ahead of original expectations.

This acquisition significantly broadens the range of product solutions we can offer clients via an expanded distribution network, and we are focused on providing our combined investment strategies to our enlarged client base as soon as possible.

As complementary businesses, with almost no overlap of investment strategies, together, we will be better placed to take advantage of the growth opportunities we see in the US market.

Pendal share price summary

The last 12 months have been positive for Pendal shareholders, with the company’s shares rising by 30%. In 2021 alone, Pendal shares are up by more than 22%.

Pendal presides a market capitalisation of roughly $3 billion, with approximately 379 million shares on its books.

The post Pendal Group (ASX:PDL) share price edges lower despite positive update appeared first on The Motley Fool Australia.

More reading

• Pendal Group (ASX:PDL) share price climbs higher despite net outflows

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/3kNd78E