The Toro Energy Limited (ASX: TOE) share price is shooting higher this morning after a couple of key updates impacting the ASX uranium development and exploration company.

The Western Australia-focused group’s shares have surged 23.8% to 5.2 cents on Thursday morning.

We take a closer look at what could be driving today’s moves.

Why the Toro Energy share price is rocketing today

Investors might be wondering why this ASX small-cap share is climbing higher in early trade. There are a couple of factors at play. One is company-specific and the other is more of a macro consideration.

Toro this morning provided an update on its Lake Maitland Uranium Deposit study. The first phase of the re-engineering study at its key deposit has progressed.

Toro said the vanadium resource is currently “being integrated into the uranium resource block model ready for optimisation”.

Toro said the re-engineering “follows on from the success of research into beneficiation of the potential Lake Maitland uranium ore and the subsequent redesign of the processing flowsheet for a stand-alone Lake Maitland mining and processing operation”.

Investors might be thinking this seems like good news, but may not be enough to spark a 23.8% Toro Energy share price surge. That’s because the other factor, affecting ASX uranium shares more broadly, could be at play.

US President Joe Biden joined Australian and UK Prime Ministers Scott Morrison and Boris Johnson this morning. The trio announced a new, trilateral security partnership between their nations called “AUKUS”.

The deal will see Australia acquire a fleet of nuclear-powered submarines in the future. That represents a pivot away from the existing $90 billion deal with Naval Group to build an Australian submarine fleet.

This morning’s update has helped boost ASX uranium shares across the board as investors speculate on the news. There have been no indications of individual companies’ involvement at this stage.

The Toro Energy share price has rocketed 23.8% on the back of the twin updates. It is up 155% this year to date, and 410% over the past 12 months.

The company currently boasts a market capitalisation approaching $200 million.

The post The Toro Energy (ASX: TOE) share price is surging 23%. Here’s why appeared first on The Motley Fool Australia.

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• PointsBet (ASX:PBH) share price falls amid ‘exclusive’ agreement
• Is there a uranium ETF listed on the ASX?
• Why the Neometals (ASX:NMT) share price is surging 11% to a 52-week high
• This leading fund manager thinks these ASX shares might be buys

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.

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The Deep Yellow Limited (ASX: DYL) share price is racing to 8-year highs on Thursday as uranium prices continue to run higher.

At the time of writing, the Deep Yellow share price is up 4.4% to $1.30.

What’s driving uranium prices?

Uranium spot prices have skyrocketed from around US$30/lb in mid-August to US$48/lb by Wednesday, according to S&P Global Platts.

This mostly explains why the Deep Yellow share price has doubled from 60 cents on 20 August.

Uranium prices have boomed thanks to a Canadian fund aggressively buying physical uranium off the spot market.

Sprott’s Physical Uranium Trust, which began trading on the Toronto Stock Exchange in July has amassed more than 25 million pounds of uranium since inception.

According to S&P Global, Sprott received approval on Wednesday of an “expanded equity sales program that will allow the fund to acquire up to $1 billion in additional uranium in the coming months.”

Commenting on the Sprott’s uranium situation, S&P Global said:

One reason offers are rising so quickly is a dearth of currently available material. Multiple market sources have said that Sprott has acquired a lot of U3O8 for delivery in the current month, but also for delivery later as prompt material climbed in price.

The price surge has made inventories more valuable and may spur future production, uranium company officials said.

S&P Global also quoted Paul Goranson, CEO of uranium development company enCore Energy who said:

[Sprott] isn’t going to sell uranium. This is what they do with all their commodities, hold them. The only difference is, uranium is a much smaller market. They’re going to take all the cheap material off the market and sequester it for a very long time.

Deep Yellow share price snapshot

The Deep Yellow share price is up 92% in the past month and 153% year-to-date.

Deep Yellow shares have managed to climb to 8-year highs, broadly coinciding with uranium spot prices hitting 9-year highs on Wednesday.

The post Deep Yellow (ASX:DYL) share price jumps 5% to 8-year high. Here’s why. appeared first on The Motley Fool Australia.

More reading

• Is there a uranium ETF listed on the ASX?
• Why are ASX uranium shares in focus today?
• Here’s why the Deep Yellow (ASX:DYL) share price is up 50% this month
• Deep Yellow (ASX:DYL) share price surges 24% to record highs
• ASX uranium shares are booming double digits across the board on Monday. Here’s why.

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. 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 PointsBet Holdings Ltd (ASX: PBH) share price is in the red this morning. That’s after the betting company announced a new partnership with Major League Soccer (MLS) team Austin FC.

In early trade, shares in the company were up 1.25% to $9.72. However, at the time of writing, they are down to $9.44 — that’s a fall of 1.67% on yesterday’s closing price. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.9% higher.

Let’s take a closer look at today’s news.

PointsBet share price is taking a dive

In a statement to the ASX, PointsBet says it has entered into an “exclusive” agreement with Texas MLS team Austin FC (AFC) to appoint PointsBet as the team’s sportsbook partner.

PointsBet has also made a deal with the AFC stadium (an affiliate of AFC) to become the venue’s exclusive partner for betting across the state of Texas.

It should be noted both of these deals are contingent on the state of Texas amending existing sports betting laws. If legislation is not amended, these contracts will become null and void.

Texas is just one of several markets in the US in which PointsBet is hoping to make inroads. For example, the PointsBet share price shot up on news it would be allowed to operate in the state of West Virginia.

Texas has a population larger than Australia, while Austin, its capital, is one of the fastest-growing cities in the US, according to the statement. However, the deal has done little to boost the PointsBet share price.

Management commentary

PointsBet USA CEO Johnny Aitken said:

In owning and operating our technology from end to end, PointsBet can innovate our product and personalise our offerings according to fan interest and needs – and we hope to be able to unveil our offering to Austin FC supporters in the near future when legislation permits.

In the meantime, we look forward to the opening of the PointsBet SportsBar at the grounds of Austin FC and watching soccer in the amazing new MLS stadium.

PointsBet share price snapshot

Over the past 12 months, the PointsBet share price has plummeted 17%. Year-to-date the company’s shares are down by a similar amount.

PointsBet Holdings has a market capitalisation of about $2.5 billion.

The post PointsBet (ASX:PBH) share price falls amid ‘exclusive’ agreement appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous 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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Uranium stocks are going nuclear as the industry booms from surging spot prices.

According to S&P Global, uranium spot prices rose sharply to a 9-year high of US$48/lb on Wednesday.

But for Australians looking for investment exposure in the energy metal, good luck trying to find an ASX exchange-traded fund (ETF) that focuses on uranium.

Why isn’t there an ASX uranium ETF?

Uranium is a far less popular commodity than the likes of resources such as iron ore, copper or gold.

As a matter of fact, the energy metal doesn’t even trade on an open market. Buyers and sellers typically negotiate contracts privately.

For investors looking to gain uranium exposure on the ASX, the most realistic option is to invest in individual energy companies.

The largest ASX-listed uranium player is Paladin Energy Ltd (ASX: PDN). The $2.7 billion company operates the “globally significant” Langer Heinrich Mine in Namibia. In March, Paladin Energy successfully raised $192.5 million to clear debt and pave the way to restart its uranium operations.

Energy Resources of Australia Limited (ASX: ERA) is another major player in the ASX-listed uranium space, boasting a market capitalisation of around $1.7 billion.

Paladin Energy and Energy Resources of Australia are arguably the most established uranium companies on the ASX. However, there’s a number of emerging players and explorers to also choose from.

Boss Energy Ltd (ASX: BOE) is a $700 million uranium explorer operating the Honeymoon uranium project in South Australia. The company is looking to ramp up exploration activities to drive a final investment decision for Honeymoon in the next 12 months.

Other prospective explorers include Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN) and 92 Energy Ltd (ASX: 92E).

While there isn’t exactly a diversified ASX uranium ETF, there are certainly a number of companies operating at different stages of the exploration and production lifecycle to investigate.

What about international markets?

The Global X Uranium ETF is listed on the New York Stock Exchange and provides investors access to a broad range of companies involved in both uranium mining and the production of nuclear components.

Another major uranium ETF is Sprott’s Physical Uranium Trust, listed on Canada’s Toronto Stock Exchange. The trust is the world’s largest actively managed uranium fund that provides investment exposure to physical uranium.

The post Is there a uranium ETF listed on the ASX? appeared first on The Motley Fool Australia.

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• Why are ASX uranium shares in focus today?
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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. 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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It has been another positive day for the Neometals Ltd (ASX: NMT) share price.

In morning trade, the advanced materials company’s shares are up 11.5% to a 52-week high of 96.5 cents.

This means the Neometals share price is now up 230% since the start of the year.

Why is the Neometals share price surging higher today?

Investors have been bidding the Neometals share price higher today following the release of a briefing on its Lithium Battery Recycling project.

Within the briefing the company outlined its plans to address the emerging carbon shock of electric vehicles.

It notes that lithium and nickel are the largest contributors to CO2 emissions during the manufacturing of an electric vehicle. And while lithium brine is seen as the solution to the lithium part of the problem, it notes that nickel doesn’t have one. This comes at a time when new battery regulations are coming into place in the EU to ensure more sustainable batteries.

This is where Neometals comes in. Management believes it has a more environmentally sustainable nickel process. This is achieved through its proprietary recycling process. It also estimates that it could be the lowest cost nickel sulphate producer.

All in all, it hopes this will make it the recycler of choice for cellmakers and carmakers in the future.

Management commentary

Neometals’ Managing Director, Chris Reed, recently commented on its entry into the commercial European battery recycling landscape.

This followed the agreement with SMS to fast-track commercialisation of commercial lithium-ion battery recycling operations via the Primobius joint venture.

He commented: “We are excited to herald the entry of Primobius into the commercial European battery recycling landscape. The funding approval is an agile response by the JV shareholders to strong demand for the safe disposal of growing volumes of lithium-ion batteries arising from warranty returns and at end-of-life.”

“10tpd Shredding Plant 1 represents the maximum commitment we can make to meet demand having regard to regulatory permitting timeline constraints. As well as being a showcase for potential customers and partners, the facility will provide a valuable training ground for the operations team and will support continuous process improvement ahead of the next scale up to a 50tpd operation.”

“The scale and speed of the electrification of transport and renewable energy storage is phenomenal, the volumes and momentum of global investment funds available to support enablers of decarbonisation steel our resolve for Primobius to become the pre-eminent recycler in the western world,” he added.

The post Why the Neometals (ASX:NMT) share price is surging 11% to a 52-week high appeared first on The Motley Fool Australia.

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

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The high-performing fund manager Wilson Asset Management (WAM) has recently identified some ASX shares that it owns (or owned) in one of its leading portfolios.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) which looks at the larger businesses on the ASX.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 15.5% per annum since inception in May 2016, which is superior to the S&P/ASX 200 Accumulation Index average return of 10.8%.

These are the ASX shares that WAM outlined in its most recent monthly update:

Suncorp Group Ltd (ASX: SUN) and QBE Insurance Group Ltd (ASX: QBE)

The fund manager pointed out that the insurance sector performed strongly in August. WAM saw that reporting season revealed that premium rates are strong, volumes are stable and margins are improving.

The QBE result gave “clear evidence” that it has significant leverage to the strongest commercial premium rate cycle in the last decade. The top line growth is beating the inflation claims and it’s driving an almost doubling of underlying underwriting profits compared to the previous year.

Turning to Suncorp, the team at WAM Leaders liked that the insurance and banking business announced an increased final dividend as well as a $250 million share buy-back with its FY21 result. This highlighted for the fund manager that management are confident in the improving underlying trends across both the insurance and banking divisions.

WAM is still positive on the outlook for general insurance. There are possible catalysts for the ASX shares, with potential COVID-19 provision releases, continuing improvements in profitability and bond yield exposure.

Star Entertainment Group Ltd (ASX: SGR)

Another ASX share that WAM Leaders referred to was the casino operator Star Entertainment. It benefited from a number of value creation opportunities in August, according to the fund manager.

Star was affected by the recent lockdowns across Australia, although WAM said it demonstrated that consumer demand returns to pre-COVID levels in periods of lower restriction, on a reduced cost base.

The fund manager also pointed to the potential sale and leaseback of the ASX share’s Sydney casino, which could realise approximately $2 billion in value for shareholders.

Another element of interest was that it’s in formal negotiations with the NSW government to increase the number of gaming machines at The Star Sydney from 1,500 to 2,500.

WAM is still positive about Star Entertainment’s outlook due to the potential for an earnings recovery as Australia exits lockdowns, the company’s strategic optionality and “attractive valuation”.

The post This leading fund manager thinks these ASX shares might be buys appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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If I could have known just how big Amazon.com, Inc. (NASDAQ: AMZN) would get, I would have bought shares at the IPO.

Which is probably the most useless sentence ever written!

It’s akin to ‘If I’d known what last night’s lotto numbers were, I would have marked them on my ticket’.

It is perhaps wiser to ask ‘Given Amazon’s success, what lessons does it offer us?’

One, by the way, is ‘It’s better late than never’; I left plenty of money on the table but did — belatedly — buy Amazon shares, and I still hold them today.

The lessons might go to disruption and innovation. Changing the game, doing things differently — better — is hard. But if you can do it well, and actually achieve ‘escape velocity’, then you turn others’ benefits of incumbency into millstones around their neck.

Not easy to do, of course, but once you’ve done it, the world can be your oyster.

The lessons might, related, go to scale. Size becomes its own defence at some point, as you go from puny upstart to dominant player. You get to set standards, call the shots, and your marketing costs can fall as you become a household name, at least among your target market.

And the lessons might go to culture. Building from scratch, though difficult, can be easier than trying to turn things around from inside. An oil tanker takes more time, effort and distance to turn than a speedboat does.

But, as I said before, these things are only obvious in hindsight, and only after a company crosses an invisible tipping point.

Plenty of would-be Amazons have failed. Wal-Mart, usually held up as the victim of Amazon’s success, has found a second wind.

Still, I was amazed — and, again, I’m a shareholder so discount it accordingly, if you think that’s appropriate — to get an email from Amazon this morning, telling me they’d sent me a refund.

The word refund was in the email’s ‘subject line’ but it didn’t tell me what the product was.

“Bugger”, I thought, “I wonder what I’m not getting.

Opening the email, I was instantly confused. I’d actually received the product yesterday.

I had to read a little further.

Then I read it:

“Reason for refund: Item shipped late”

I hadn’t complained.

Truth be told, I hadn’t even realised it was late.

Yet Amazon had refunded my shipping cost. In full.

Again, remember I hadn’t complained.

Amazon swallowed my shipping cost.

Not to keep me sweet. Not because I complained.

But because they figure they screwed up, and wanted to make it right.

They could have done nothing. I probably wouldn’t have noticed.

If I’d complained, they could have legitimately blamed COVID-related shipping delays.

Or begrudgingly offered me a partial refund or site credit.

I probably would have been satisfied with that, had I complained.

But Amazon doesn’t want me to be ‘satisfied’.

It doesn’t want me to feel neutral about the company.

It doesn’t want me to tell my friends that Amazon is ‘okay’.

Don’t get me wrong — Amazon isn’t doing this out of the kindness of its (shareholders’) hearts.

Amazon is doing it because it knows that customer love matters.

That meeting expectations is the ticket to the dance, but truly delighting customers sets a company apart.

It knows that by treating customers better than they expect to be treated, those customers will be even more likely to use Amazon next time.

That freight saving is an investment in customer retention.

Because Amazon also knows that the cost of ‘acquiring’ a new customer is many, many times the cost of keeping an existing one.

It probably also knows that people want to work for a company that cares for its customers, too. And that it’s far more efficient to pre-emptively deal with supply chain failures than deal with unhappy customers.

And it knows human nature means that I now feel better about being an Amazon customer than I did before I opened that email.

So, I’m probably going to use Amazon more in future, because I know how much they care about their customers. I’m going to be less worried that they might try to get one over on me next time. That, choosing between Amazon and someone else, I’m going to trust Amazon a little more.

And all of the above, measured over days, weeks, months and years, makes that freight refund a pretty cheap investment.

Which begs the questions:

How many businesses try to make a buck on every single transaction, missing the forest for the trees?

How many businesses are investing time, effort and money into making their customers’ experience a better one?

How many businesses are truly playing the long game — realising that happy customers, even if less profitable today, are goldmines over the long term.

It’s not just Amazon, of course.

For example, Aussie Broadband, in the usually boring, low-expectations world of telecommunications, elicits a tonne of customer love, and recommendation.

Corporate Travel Management, a company whose shares I also own, has long won awards for customer service and satisfaction and has high customer retention rates.

And there are plenty more besides.

As a group, I reckon there’s a pretty good chance that companies that care most about their customers — and whose customers feel that love — will beat those who don’t.

It’s not the only way to pick a stock market winner. And there will be exceptions that prove the rule. But when your customers actively tell others about their great experience… well, you’re probably onto something worth paying attention to.

Fool on!

The post Does your company love its customers? appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Scott Phillips owns shares of Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price has returned from its trading halt and is sinking on Thursday.

In morning trade, the clean lithium company’s shares are down 10% to $14.40.

Why is the Vulcan share price sinking?

The Vulcan share price has come under pressure on Thursday after receiving firm commitments for its $200 million underwritten placement to sophisticated, professional, and institutional investors.

According to the release, the company is raising the funds at an offer price of $13.50 per new share. This represents a discount of 15% to the Vulcan share price prior to its trading halt.

The release notes that the placement was strongly supported by new and existing shareholders. This includes Gina Rinehart’s Hancock Prospecting and a number of global ESG-focused institutions.

The settlement of the placement is expected to occur on 21 September. After which, a share purchase plan will open on 24 September. This will be available to eligible existing Vulcan shareholders and will seek to raise up to a further $20 million at the same price.

Why is Vulcan raising funds?

Vulcan is raising funds to support its goal of becoming the world’s first fully integrated renewable energy and zero carbon lithium company, with phase 1 production targeted for 2024.

It is also seeking to expand its Zero Carbon Lithium Project development at a time of unprecedented demand for lithium chemicals to supply the transition to electric vehicles in Europe.

Vulcan’s Managing Director and CEO, Dr. Francis Wedin, said: “We would like to thank our existing shareholders, including Hancock Prospecting, and new ESG-focused institutional shareholders, for supporting us in this placement to accelerate and expand our integrated renewable energy and lithium development strategy.”

“We are now well positioned to pursue the targeted acquisition and upgrade of existing brownfield energy and brine infrastructure, to de-risk and grow our development plans, as well as to increase our production pipeline from our existing license areas.”

“This also allows us to complete the targeted acquisition and refurbishment of exploration equipment which will assist with executing on our project development in a timely manner. The Vulcan team remains focused on developing our world-first dual renewable energy and Zero Carbon Lithium business, with phase 1 production to supply the EU battery market targeted for CY2024,” he concluded.

The Vulcan share price is up over 400% in 2021.

The post Why the Vulcan (ASX:VUL) share price is crashing 10% today appeared first on The Motley Fool Australia.

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

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The Telstra Corporation Ltd (ASX: TLS) share price is rising after the telco released its T25 strategy and also told the market about its dividend intentions.

T25 strategy to help the Telstra share price?

There are a few key elements to this new strategy.

Telstra wants to deliver sustained growth and value for shareholders. – It’s targeting a compound annual growth rate (CAGR) of mid-single digits for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and high-teens for underlying earnings per share (EPS) from FY21 to FY25. Telstra also wants T25 to achieve another $500 million of net cost reductions, good cash conversion and generation, active portfolio management and shareholder value through an updated capital management framework.

It wants to provide an exceptional customer experience. – The telco is planning to expand into energy and continue to provide its other services. One part of the customer service will be using ‘predictive analysis’. Telstra wants to ensure that customer can speak to an Australian contact centre service rep or visit a local expert in its Telstra-owned store network. It’s looking to grow its Telstra Plus membership to 6 million by FY25.

The telco wants to have continued network and tech leadership, providing solutions that deliver for the future. – It’s planning to extend its 5G network coverage to 95% of the population. Regional coverage will be expanded with 100,000sq km of new 4G and 5G coverage. The company also referred to greater access to tower assets with 250 new towers and 700 additional tenancies.

Telstra also wants to be a place that people want to work. – It wants to be in the 90^th percentile for employee engagement.

The Telstra share price is currently up around 2% after releasing this update.

Dividend growth goal

A notable part of the T25 announcement was that Telstra is looking to maximise fully franked dividends for shareholders and seeks to grow them over time.

Telstra said that its objectives about its capital management framework is to maximise returns for shareholders, maintain financial strength and retain financial flexibility.

The company noted the importance of dividends for investors. It intends to return as much cashflow to shareholders that can be sustainably be supported by earnings and franking.

Telstra is confident in maintaining a minimum fully franked dividend of $0.16 per share, subject to no expected material events and the requirements of its capital management framework. At the moment, its franking credit balance is “low”.

At the current Telstra share price, the telco’s $0.16 per share annual payment equates to a grossed-up dividend yield of 5.7%.

It pointed out that in FY21 it generated 15.6 cents of reported EPS and 9.7 cents of underlying EPS. Management stated that it needs to grow underlying earnings in line with its financial ambitions and grow its franking balance in order to grow fully franked dividends.

Telstra has replaced its previous principle of paying fully franked dividends of 70% to 90% of underlying earnings because it expects its cashflow to remain ahead of its accounting earnings.

It expects FY22 to be the last year of special dividends funded by the NBN receipts.

Telstra share price valuation

Earnings estimates may change after the T25 update. However, the current Commsec estimates put the Telstra share price at 24x FY23’s estimated earnings.

The post Telstra (ASX:TLS) share price rises on T25, dividend growth goal appeared first on The Motley Fool Australia.

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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 Telstra Corporation 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 EML Payments Ltd (ASX: EML) share price is under pressure this week. Shares in the Aussie payments group are falling again today and are down 9% since last Tuesday.

So, what’s influencing the company’s valuation right now, and should investors be paying attention?

Why the EML share price is down 9% in just over a week

It’s been a volatile little period for the company’s shares. They closed at $4.23 per share last Tuesday, September 7 and struggled through to Friday’s close.

The EML share price then climbed back up to $3.98 per share on Tuesday morning this week before sliding through to $3.86 per share at Wednesday’s close. In early trade today, they are down 0.52% to $3.84 — that’s a fall of 9.2% since last Tuesday.

Interestingly, there have been no new announcements from the ASX payments group in recent days. However, it often pays to look at recent updates and see if there is a hangover of sorts from investors reacting to the latest news.

The last major price-sensitive announcement from the group was its August 20 full-year results update.

In case you missed it, EML announced its FY21 results with some of the key takeaways below:

• Gross debit volume (GDV) up 52% on the prior corresponding period (pcp) to $19.7 billion;
• Revenue up 60% on pcp to $194.2 million;
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 65% on pcp to $53.5 million;
• Operating cash flow up 121% on pcp to $48.8 million;
• Underlying net profit after tax and acquisition adjustments (NPATA) up 54% to $32.4 million.

The EML share price has been broadly flat since the full-year update. Shares in the payments group are up 7.5% in the past month but a sharp drop in mid-May amid regulatory concerns in Ireland means they remain down around 27% in the past 6 months.

Tech shares have been under pressure in recent days with the ASX following the trend seen in offshore markets such as the United States. That seems to be flowing through to EML’s valuation given the lack of any market-moving news and relatively benign conditions in recent days.

Foolish takeaway

The EML share price has struggled to climb higher in 2021. Despite some bumper headline growth numbers in its August results, shares in the payments group have tumbled in recent days.

The post The EML (ASX: EML) share price is down 9% in recent days. What’s happening? appeared first on The Motley Fool Australia.

More reading

• The EML (ASX:EML) share price has lost 9% in 6 days. What’s happening?
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• Here’s why the EML (ASX:EML) share price is up 8% in the last month
• The EML Payments (ASX:EML) share price is rated as a strong buy
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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 EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. 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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