The S&P/ASX 200 Index (ASX: XJO) has fought back valiantly from a morning selloff and is now trading only modestly lower. In afternoon trade, the benchmark index is down 0.1% to 7,276.8 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 3% to $108.35. Investors have been buying this payments company’s shares after it announced the rollout of its Money by Afterpay app. The app will initially be rolled out to Australian staff, followed by a full Australian customer launch in October. It will provide users with a 1% per annum interest rate on savings accounts, as well as a daily account with a physical debit card, digital wallet offerings, and the ability to easily make and receive real time payments.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ share price is up 1.5% to $27.53. The catalyst for this was the banking giant’s announcement of a $1.5 billion on-market share buy-back. ANZ’s Chief Executive Officer, Shayne Elliott, advised that the bank considered the current lockdowns when making the decision to undertake the buy-back. The bank also revealed that further capital returns will be considered.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is up over 2% to $48.74. This follows the release of the retail giant’s full year update. According to the release, JB Hi-Fi reported a 12.6% increase in total sales to $8.9 billion in FY 2021. And thanks to operating leverage, it expects to report a net profit after tax of $506.1 million. This represents an increase of 67.4% year on year.

Zip Co Ltd (ASX: Z1P)

The Zip share price has stormed 5% higher to $7.39. This is despite there being no news out of the buy now pay later provider. However, with its shares falling heavily over the last 30 days, this gain could have been driven by bargain hunters swooping in.

The post Why Afterpay, ANZ, JB Hi-Fi, & Zip shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• Up 6%, the Zip (ASX:Z1P) share price is surging. Here’s why
• ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight
• ASX 200 midday update: Oil Search rejects Santos merger proposal, Afterpay rolls out Money app
• Afterpay (ASX:APT) share price is higher despite the sharp ASX 200 selloff
• JB Hi-Fi (ASX: JBH) share price higher after beating expectations in FY 2021

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.

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

The BHP Group Ltd (ASX: BHP) share price is sliding on Tuesday, following the release of its fourth quarter and full-year operational update.

Shares in the iron ore major finished last week on a high note, marking a record high on Friday of $51.91.

However, this week has proven to be challenging for BHP shares, slipping 4.6% to $49.52.

Overnight selloff drives the BHP share price lower on Tuesday

Major US indices fell overnight with the Dow Jones Industrial Average Index (DJX: .DJI), S&P 500 Index (SP: .INX) and Nasdaq Composite (NASDAQ: .IXIC) sliding 2.09%, 1.59% and 1.06% respectively.

According to CNBC, the rebound in COVID-19 cases in the United States and the delta variant has sparked fears that global economic growth would slow.

CNBC reported that “key stocks linked to global economic growth” fell overnight, with high-profile US shares such as Boeing, General Motors and Caterpillar sliding 4.94%, 4.38% and 2.34% respectively.

The BHP share price is also listed on the New York Stock Exchange, where its counterpart slipped 2.79% overnight to US$72.34.

BHP delivers a solid full year update

Despite the BHP share price losing ground on Tuesday, the company delivered a solid fourth quarter and full-year operational update.

BHP Chief Executive Officer Mike Henry said in response to the results:

We achieved production records at our Western Australia iron ore operations and the Goonyella Riverside metallurgical coal mine in Queensland.

South Flank, the largest and one of the most technically advanced iron ore mines in Australia, began production in May and will boost the overall quality of BHP’s iron ore product suite.

BHP is in great shape. Our operations are performing well, we continue our track record of disciplined capital allocation, and our portfolio is positively leveraged to the megatrends of decarbonisation, electrification and population growth.

What about iron ore prices?

According to Market Index, iron ore spot prices have remained firm overnight, fetching US$219.5/tonne.

Elsewhere, Chinese iron ore futures on the Dalian Commodity Exchange opened 1.2% lower, just shy of 1,220 yuan or US$187/tonne.

BHP share price snapshot

The BHP share price has moved broadly in line with the S&P/ASX 200 Index (ASX: XJO) year to date, up 16.8% and 10.4% respectively.

Looking ahead, Macquarie is bullish on the medium-term outlook for BHP shares, with an outperform rating and $63.00 target price.

The post Why the BHP (ASX:BHP) share price is down 4% this week appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Oil Search rejects Santos merger proposal, Afterpay rolls out Money app
• Nuix (ASX:NXL) share price plunges 7% in 7 days
• BHP (ASX:BHP) share price in focus after strong FY 2021 performance
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher

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 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.

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

The Zip Co Ltd (ASX: Z1P) share price appears to be defying expectations today, currently rallying by 5.97% to $7.45.

This follows a sharp selloff on Wall Street overnight. The tech-heavy Nasdaq Composite (NASDAQ: .IXIC) fell 1.06% and US-listed buy now, pay later (BNPL) share Affirm Holdings Inc was down by 2.85%.

Why the Zip share price is bouncing

Big players eyeing Zip shares

On Monday, a change in substantial holding announcement revealed that Bank of America Corp had increased its stake in Zip from 6.15% to 7.45%.

Bank of America has had a longstanding relationship with Zip, acting as its financial advisor and placement agent during the company’s QuadPay acquisition.

The major US bank also played a part in assisting Zip with its $400 million convertible bond raising.

Bank of America’s initial 6.15% stake was announced back in April this year.

It was also just two weeks ago the Australian Financial Review speculated that Swedish BNPL provider Klarna had accumulated a 4% stake in Zip as well.

The Klarna news witnessed a 21.98% surge in the Zip share price between 7 and 8 June.

BNPL shares bounce back

Most ASX-listed BNPL shares tumbled more than 10% last week when news broke about Apple Inc potentially launching its own BNPL service and PayPal Holdings Inc‘s plans not to charge any late fees for its BNPL services.

After a grim performance last week, BNPL shares are bouncing back today. In addition to the surging Zip share price, Afterpay Ltd (ASX: APT) shares are also up by 2.57% at the time of writing.

The Sezzle Inc (ASX: SZL) share price has bounced off session lows, but is still down 0.73% to $8.17.

Quarterly update on the horizon

In the past, Zip typically delivers its fourth-quarter results in the latter half of July.

The last time we heard a meaningful update from Zip was its third-quarter results on 13 April which was followed by a $400 million notes offering to fund the company for growth. The Zip share price rocketed almost 17% higher on the day the company’s record results were released.

The post Up 6%, the Zip (ASX:Z1P) share price is surging. Here’s why appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Oil Search rejects Santos merger proposal, Afterpay rolls out Money app
• These are the 10 most shorted ASX shares
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher
• These were the worst performing ASX 200 shares last week
• How has the Afterpay (ASX:APT) share price responded to competition in the past?

Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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., Apple, PayPal Holdings, 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.

from The Motley Fool Australia https://ift.tt/3kAhkN9

The Grange Resources Limited (ASX: GRR) share price is gaining today after the company released its latest quarterly report.

Within the report, Grange Resources said the average price it received for its iron ore products increased by 25.5% over the quarter ended 30 June 2021 and its operations were unhindered by COVID-19.

Currently, the Grange Resources share price is 86.5 cents. That’s 7.45% higher than its previous close of 81 cents.

Let’s take a closer look at today’s news from the mineral resource developer and iron ore miner.

Financial and operational performance

The quarterly report stated the average price Grange Resources received for its products increased to US$287.15 per tonne over the June quarter. That’s up from US$228.52 per tonne in the quarter prior.

Its production of concentrate materials also increased to 677 kilotons. That’s up from 529 kilotons in the March quarter.

The company’s pellet sales also increased to 653 kilotons for the quarter – 97 kilotons more than it sold in the March quarter.

On top of increased sales and prices, the company’s operating costs decreased by 20% to $90.16 per tonne.

Grange Resources has ended the period with cash and liquid investments valued at $416.4 million.

What else has Grange been up to?

Over the quarter just been, Grange has been working towards upgrading and developing its operations in northern Tasmania.

It also received environmental approval to mine the remaining area of its centre pit and installed safety controls to minimise rockfalls at its north pit.

Over the June quarter, Grange Resources upgraded its rougher magnetic separators for the first time in 53 years.

Finally, the company spent $10.1 million on equipment and upgrades over the 3 months just gone.

Grange Resources share price snapshot

Today’s gains have boosted the Grange Resource share price even higher.

Right now, shares in Grange Resources are up 188% year to date. They’re also 246% higher than they were this time last year.

The company has a market capitalisation of around $931 million, with approximately 1.1 billion shares outstanding.

The post Why the Grange Resources (ASX:GRR) share price is up 7% today appeared first on The Motley Fool Australia.

More reading

• Why the Grange Resources (ASX:GRR) share price is up 27% in a week

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/3kAuCcn

The Oil Search Ltd (ASX: OSH) share price has jumped well into the green this morning.

The jump comes after it received a change of control proposal that was confirmed in an announcement today.

Here are the details.

Oil Search rejects takeover offer

The Oil Search share price has had a choppy start to the week.

Its share price fell on Monday following the sudden resignation of its chief executive on Monday and amid volatile oil prices.

Today’s announcement confirms that on 25 June, Australian energy giant Santos Ltd (ASX: STO) submitted a “confidential, non-binding indicative all-scrip merger proposal to the Oil Search Board”.

Santos confirmed in an announcement today that the offer implied a transaction price of $4.25 per share “based on Santos’ closing price on 24 June 2021”.

The offer, therefore, represents a 12.3% premium to Oil Search’s closing share price on that day.

However, Oil Search “noted that the proposal did not offer appropriate value for Oil Search shareholders or a basis on which discussions could be progressed”.

As such, Oil Search rejected the takeover offer under the terms stipulated by Santos at this time.

Nonetheless, Santos has put forward the “prospect of a genuine merger”. To this, Oil Search has stated:

The strategic rationale for a merger is clear and offers superior value to Oil Search shareholders rather than continuing on a standalone basis.

It’s clear there will be more on this story in the future.

Investors have rewarded the company on its decision, pushing the Oil Search share price north 5.72% into the green.

Oil Search shares are now changing hands at $3.88 apiece, 74 cents off the 52-week high of $4.62.

Oil Search share price snapshot

The Oil Search share price has had a choppy year to date, posting a return of 4.1% since January 1. This has extended the previous 12 months’ return of ~28%.

Whilst Oil Search shares have lagged the S&P/ASX 200 Index (ASX: XJO)’s return so far in 2021, it has beaten the broad index’s return of ~21% over the past year.

At the time of writing, Oil Search has a market capitalisation of $7.6 billion.

The post Oil Search (ASX:OSH) share price jumps 6% after rejecting takeover bid appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Oil Search rejects Santos merger proposal, Afterpay rolls out Money app
• Santos (ASX:STO) share price lower after Oil Search rejects merger proposal
• What happened on the US stock market overnight and how could it impact ASX shares?
• Oil Search (ASX:OSH) share price in focus after revealing takeover approach
• ASX energy shares on watch after oil prices sink 8%

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

from The Motley Fool Australia https://ift.tt/2Tn5ZEV

The Insurance Australia Group Ltd (ASX: IAG) share price is lifting today. This follows an announcement from the insurance company regarding the appointment of a new chief insurance and strategy officer.

At the time of writing, the IAG share price is up by 0.52% to $4.85 per share. The company’s shares have recovered from a fall at the open. At one point shares were trading 2.48% lower at $4.71.

Appointment made in new role

Australia and New Zealand’s largest general insurance company released an announcement to the ASX today.

According to the release, Mr Tim Plant has been appointed as chief insurance and strategy officer. This is a newly created role that will involve group governance responsibilities across underwriting, claims, and customer experience.

Furthermore, Mr Plant will start in the position before the end of the year. The former Zurich chief executive officer joins IAG with 30 years of experience in the general insurance industry. The lengthy track record might have shareholders optimistic for the future of the IAG share price.

Commenting on the appointment, IAG managing director and CEO Nick Hawkins said:

Tim brings a considerable depth of underwriting and insurance experience, as well as a deep understanding of customer needs through his leadership roles in the Australian and New Zealand general insurance markets. Tim’s experience will further bolster IAG’s leadership and I look forward to welcoming Tim to the team.

Shares in the insurance company have had a mixed day so far, but are currently trading 0.52% higher. For context the S&P/ASX 200 Index (ASX: XJO) is 0.11% lower at the time of writing.

Other IAG share price shifting news

Investors are possibly still feeling tremours from yesterday’s update on a potential asset sale. The IAG share price slipped 2% before the company announced a potential sale of its interest in Malaysian business, AmGeneral Holdings Berhad, after the market closed.

Pending regulatory processes and approvals, IAG could bag $340 million in cash during the financial year. However, the insurance company expects to incur a loss on sale of roughly $901 million. As a result, it intends to realise this loss as amortisation and impairment in its FY21 results.

Despite today’s gain, the IAG share price is down more than 7% over the last month.

The post IAG (ASX:IAG) share price climbs on new leadership appointment appeared first on The Motley Fool Australia.

More reading

• Here’s why the IAG (ASX:IAG) share price is down 7% this last month
• IAG (ASX:IAG) share price on watch following asset sale update
• Brokers using the lockdown to upgrade earnings forecasts on these ASX 200 shares
• What’s weighing down the IAG (ASX:IAG) share price lately?
• It’s been a tough month for the IAG (ASX:IAG) share price so far

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

from The Motley Fool Australia https://ift.tt/36NIcks

Is there anything more likely to get the tongues wagging than a Bitcoin forecast?

And doubly so when it’s made by Australian investing royalty, in the shape of Magellan co-founder (and billionaire) Hamish Douglass?

And triply so when he says it’s worth… zero?

Bring out the laser eyes. And the diamond hands. And the HODL crowd. (No, me either, but they’re just some of the memes and schemes used by the snarks on social media.)

Bring out the ‘OK Boomer’ and the ‘Look what I’ve made on Bitcoin’ lot.

The true believers and the momentum lovers.

The diehards and the new-world-order lot.

Yes, in some corners of the virtual world this morning, Hamish is Public Enemy Number 1.

“He doesn’t get it”

“He’s gunna get steamrolled”

“What would he know…”

Now, let’s put aside the fact that the last people you should listen to are the true believers.

I mean, if you have no room for doubt in your investment thesis, frankly, you’re a mug.

Let’s ignore the meme-lovers and the professional haters.

Let’s actually look at what Hamish said, courtesy of the AFR yesterday:

“There are millions and millions of people participating. Some of the people, they’ve never invested before and the only bandwagon they’ve ever got on is the cryptocurrency bandwagon and it’s almost like a religion.”

And not just that…

“I can’t tell you when that will happen by the way. It could happen shortly, it could happen quite some time into the future … I think when we look back in 20 years it will be the case study of the irrationality.”

Well, I guess that’s clear.

Man the barricades!

The ‘intrinsic value’ mob on one side.

The ‘Bitcoin will take over’ crowd on the other.

Ready, set…

Stop.

See, there’s no need to take an investment view on this one.

It’s very reasonable to simply put cryptocurrency in the too hard basket.

It’s worth adding here, by the way, that I bought $100 worth of Bitcoin some years ago, to follow along with ‘skin in the game’.

And The Motley Fool purchased $5 million worth of Bitcoin earlier this year.

So you might expect me to be all-in.

Not so fast.

One of the luxuries of working for The Motley Fool is that we’re not forced to take a ‘house view’.

So while our CEO thought we should invest in Bitcoin, I wouldn’t have done the same.

And that’s cool.

But that doesn’t mean I think Bitcoin — and the broader crypto category — is worth zero.

At least, not necessarily.

It definitely has no intrinsic value — at least not in the way that term is understood.

It makes no profit. It has no cashflows. It can’t be valued on either basis.

And so — at least as the term is understood — it has no intrinsic value.

Does that mean it should be priced at zero?

Not necessarily. 

Gold has no intrinsic value.

But it has sold for — sometimes a lot — more than zero in the past.

And still does today.

So just because something technically has no intrinsic value doesn’t mean people won’t pay good money for it.

Does that mean you should invest in it?

Not so fast.

I’ve never been a fan of investing in gold.

I’m still not a fan of investing in Bitcoin.

But that doesn’t mean there’s no price for either.

Here’s the problem, though:

Let’s say you understand the technical specifications of Bitcoin / blockchain.

Let’s say you can see how Bitcoin might be used either as a store of value.

Let’s say you can see it might be used as a currency.

And let’s say, for the sake of the argument, you’re right.

Tell me, as a result and with some objective rationale, what it’s worth.

You can’t?

Me either.

Which is specifically why Bitcoin isn’t an investable asset.

The Australian dollar is more widely used than it used to be. It’s not valued in the tens of thousands of dollars.

Yes, yes, more dollars have been issued. Yes, I know Bitcoin is theoretically limited.

But what will the future demand for Bitcoin look like?

Will people hoard it? Spend it? Divide it?

Move on to the next big thing?

And if any or all of those things are true, I still have the same question: so what will the price be… and why?

I absolutely hear the case for why Bitcoin could be used a lot more in future.

I guess I think it’s possible, but not likely.

But even if I’m wrong, I’m yet to see a single person give me a reasoned basis for some future price.

I can’t help but draw an analogy to air travel.

The number of passenger-miles has exploded exponentially over the last 40 or 50 years.

And the result?

Airlines have gone broke — some repeatedly — over the last few decades.

The demand-will-skyrocket fans were right.

It didn’t help profitability.

Yes, it’s an imperfect analogy.

But you take my point.

Getting part of the thesis right doesn’t (necessarily) mean you’ll be able to extrapolate the financial result.

Again, I’m not joining Hamish in his prediction that the price will go to zero.

It may.

Or not.

But his broader point is unavoidable — there’s simply no objective way to know what it’ll be worth in the future.

Which is why (other than my token $100 purchase) I’m giving it a miss, and I prefer to invest in shares in operating businesses, instead.

The post Bitcoin is worthless… but maybe priceless? appeared first on The Motley Fool Australia.

More reading

• Down 7% over the week, will Bitcoin find a floor at US$30,000?
• Aussie startup set to launch first Bitcoin (CRYPTO:BTC) payment card with Visa
• 75% of Aussies think the Bitcoin (CRYPTO:BTC) bubble will burst
• How does the ATO know how much money I made from cryptocurrencies?
• This little known token has gained 40 times more than Bitcoin today

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 Bitcoin. 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/2UmvG9c

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share buyback caught experts off guard and puts other ASX 200 bank shares under the capital return spotlight.

The ANZ Bank share price jumped 1% to $27.43 in morning trade after it announced yesterday evening that it would undertake a $1.5 billion on-market share buyback.

The bank is bucking the market gloom. The S&P/ASX 200 Index (Index:^AXJO) dropped 0.2% at the time of writing with all ASX bank shares falling into the red.

The Commonwealth Bank of Australia (ASX: CBA) share price lost 0.5%, National Australia Bank Ltd. (ASX: NAB) share price shed 0.7% and Westpac Banking Corp (ASX: WBC) lost 0.9%.

ANZ share buyback catches experts by surprise

The market was expecting a capital return bonanza. But most experts didn’t think it would come this early and they didn’t think ANZ Bank would be the first cab off the rank.

One would have thought that the COVID-19 lockdowns, which has now spread to South Australia, would have given ANZ Bank reasons to hold off on pulling the trigger.

After all, ASX 200 banks will have to offer financial assistance to borrowers hit by fresh COVID restrictions across Sydney, Melbourne, and now Adelaide.

Capital return floodgates to open for ASX 200 banks

Experts thought that if any big ASX bank was to announce a capital management program, it would be Commonwealth Bank.

Commonwealth Bank is the only one of the big four that will release its full-year results in August. That is typically the time that boards announce such programs.

“We are surprised at the timing of the buyback announcement given continuing COVID uncertainty, regulatory relief, and expected rise in deferred loan balances,” said Citigroup.

“However, ANZ, with a CET 1 capital position of 12.4%, felt a buyback could be conducted despite the uncertainty.”

How big will capital returns be for ASX 200 banks?

The broker believes that Commonwealth Bank will announce a $5 billion off-market share buyback with its results on 11 August. Westpac and NAB shouldn’t be far behind either with capital returns of their own.

However, capital returns could also come in the shape of a special dividend. Goldman Sachs is forecasting Commonwealth Bank to declare a $3.5 billion special dividend on top of its regular final dividend next month.

First but not last

Coming back to ANZ Bank, this share buyback won’t be its last. Morgan Stanley reckons ANZ Bank will cough up a total of around $3.5 billion of on-market buybacks over the next two years.

But the broker acknowledged that bigger buybacks are possible given the strength of ANZ Bank’s balance sheet.

The flood of capital returns from ASX 200 banks will provide an important support for the sector. Many investors believe these shares are looking fully valued after rallying hard over the past year.

The post ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Oil Search rejects Santos merger proposal, Afterpay rolls out Money app
• Do ASX 200 banks share same BNPL ambitions as Westpac (ASX: WBC)?
• Is this the beginning of a market crash for ASX shares? Experts say fear not
• What happened on the US stock market overnight and how could it impact ASX shares?
• 2 high yield fully franked ASX dividend shares rated as buys

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking Corporation. Connect with me on Twitter @brenlau.

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/3kzXvW1

The Catapult Group International Ltd (ASX: CAT) share price is dipping lower today following an update on its Share Purchase Plan (SPP).

At the time of writing, the sports analytics and wearables company’s shares are down 2.9% to $1.84.

Share Purchase Plan complete

According to its release, Catapult advised it has successfully completed its SPP following overwhelming support from shareholders.

Around 1,200 valid applications were received, totalling in excess of the original $5 million offer. However, management decided to increase the SPP’s offer size to approximately $8.5 million. This will result in around 4.2 million new ordinary shares being added to the company’s registry.

The issue price listed at $1.90 for each share, reflecting the same price paid by investors under the equity placement.

Catapult raised $36.4 million in an underwritten institutional placement late last month, with 24.5 million shares issued.

In total, the company received $44.9 million, consisting of both placements as well as the director placement (subject to shareholder approval).

The funds will be used in the strategic acquisition of leading sports software video solutions provider, SBG Sports Software (SBG). In addition, the remaining monies will be allocated towards accelerating Catapult’s growth strategy, investing in technology, product, and data science.

Normal trading of the SPP shares is expected to occur tomorrow, Wednesday 21 July.

Catapult CEO Will Lopes touched on the outcome of the SPP, saying:

I am extremely grateful for the support and loyalty of our retail shareholders who subscribed in strength for this SPP.

The funds raised from the SPP complement our recent successful institutional placement, enabling Catapult to accelerate its growth strategy. These are extremely exciting times for Catapult, and I look forward to the Company delivering on this accelerated growth strategy and our enormous SaaS growth opportunity.

About the Catapult share price

It’s been an interesting year for Catapult shares, having moved in circles since this time last year. Over the last 12 months, the company’s share price has increased by more than 30% but is relatively flat year-to-date.

On valuation grounds, Catapult commands a market capitalisation of roughly $414 million, with approximately 224 million shares outstanding.

The post Catapult (ASX:CAT) share price heads south on capital raising update appeared first on The Motley Fool Australia.

More reading

• Catapult (ASX:CAT) share price dips on acquisition
• Brokers name 3 ASX shares to buy today
• Why Catapult, Earlypay, Nuix, & Woolworths are tumbling lower
• Why the Catapult (ASX:CAT) share price is down 12% today
• Catapult (ASX:CAT) share price halted ahead of $57m capital raising

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 Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended Catapult Group International 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/3xQztKo

The Strike Energy Ltd (ASX: STX) share price has bounced back after dropping almost 3% in early trade today. This comes after the company released an update on its West Erregulla project in Western Australia.

In early trade, Strike Energy shares were exchanging hands for 29.3 cents apiece, trading off their 52-week high of 41 cents. However, at the time of writing, they have rebounded to 30 cents — the same as yesterday’s closing price.

Let’s take a look a what is behind the price action for Strike Energy shares this morning.

Quick recall on Strike Energy

Strike is an oil and gas exploration company, that has interests in Western Australia and South Australia.

Its projects are situated at the Southern Cooper Basin Gas Project, the Perth Basin and at West Erregulla.

At the time of writing, Strike Energy has a market capitalisation of $604 million.

Strike increases exposure to West Erregulla

The company announced today it has increased its “economic interest in the West Erregulla gas project” to 54%.

Strike achieved this via the “acquisition of an 8.16% strategic stake in the listed equities of Warrego Energy Ltd (ASX: WGO)”. It is now Warrego’s largest independent shareholder.

Strike said its board decided that increasing its stake by a further 4% at a cost of around $22 million “represented an attractive transaction”.

Today’s news comes after Strike previously announced the “transformational phase of its Perth Basin gas resource growth strategy”.

Investors seem to have had a mixed reaction to today’s announcement, initially pushing Strike shares 2.5% into the red from the market open.

Since the “transformational phase” announcement on 6 July, Strike Energy shares have posted a loss of about 11%.

Strike Energy share price snapshot

Strike shares have had a choppy year to date, posting a return of 3.4% since January 1.

However, the Strike Energy share price more than doubled the S&P/ASX 200 Index (ASX: XJO)’s 12-month return of 21%, scoring a single-year return of 50%.

Over the previous month, the company saw its share price fall by 15% into the red.

The post Strike Energy (ASX:STX) share price rallies after falling 3% appeared first on The Motley Fool Australia.

More reading

• Why Bell Financial, Sayona Mining, Strike, & Soul Patts are sinking
• Strike Energy (ASX:STX) share price see-sawing today
• Strike Energy (ASX:STX) share price charges higher on “transformational” outlook
• Here’s why the Strike Energy (ASX:STX) share price is surging today
• What’s happening with the Strike Energy (ASX:STX) share price?

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

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