Tabcorp Holdings Ltd (ASX: TAH) shares are sinking this morning following the announcement of a demerger. At the time of writing, the Tabcorp share price is trading hands at $4.99, down 4%.

Today’s announcement follows months of speculation regarding the potential for the gaming giant to split up its wagering and lottery divisions.

Big news for the Tabcorp share price

This morning Tabcorp announced the conclusion of its strategic review, with the decision to demerge the lotteries and keno business.

As a result, two separate ASX-listed companies will emerge. Those being a standalone lotteries and keno business (Lotteries & KenoCo), in addition to the existing listed Tabcorp. The Tabcorp that we know today will retain the wagering, media, and gaming services businesses (Wagering & GamingCo).

At this stage, the company is targeting demerger completion by the end of June 2022. Current chief executive officer David Attenborough will stay on until the demerger is completed.

Following that, Lotteries & Keno managing director Sue van der Merwe will become CEO of the lottery company. Meanwhile, Wagering & Media managing director Adam Rytenskild will become CEO of the existing Tabcorp business.

Tabcorp determined the demerger to be the best option to unlock value for shareholders. The company had engaged with all bidders for its Wagering & Media business, with both parties confirming their respective previously indicated bids.

Additionally, the company noted it would continue discussions in relation to potential commercial opportunities in international markets with Betmakers Technology Group Ltd (ASX: BET).

Demerged details

The company foresees the demerger giving the benefit of focused management and optimised capital structures, increased scale, the ability to participate in future merger and acquisition activity, and access to new investors with different investment preferences and ESG criteria.

Furthermore, Tabcorp expects the separation to allow investors to value each business independently. Which might increase the likelihood of a Tabcorp share price re-rating.

Tabcorp chair Steven Grigg said:

The two businesses are expected to be leaders in their respective markets, creating great experiences for millions of customers. They will both build on their heritage of sharing the benefits of their commercial success with governments, the racing industry, licensed venues, newsagents and other retail and business partners.

What it means for shareholders

If the demerger goes ahead, current Tabcorp shareholders can expect to receive shares in the Lotteries & KenoCo business proportional to their existing shareholding. This will be in addition to retain their existing holding Tabcorp.

The next step in the process for the company is engaging with the necessary regulatory bodies.

Lastly, Tabcorp estimates the demerger process will incur between $225 million to $275 million in one-off separation costs. On top of this, the company estimates $40 million to $45 million per year of ongoing incremental costs, pre-mitigation.

The Tabcorp share price is up 55% over the past year.

The post Tabcorp (ASX:TAH) share price drops on demerger news appeared first on The Motley Fool Australia.

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

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The Airtasker Ltd (ASX: ART) share price has started the week in a very positive fashion.

In morning trade, the online marketplace for local services has seen its shares shoot over 5% higher to $1.18.

Why is the Airtasker share price charging higher?

Investors have been bidding the Airtasker share price higher following the release of a positive trading update this morning.

According to the release, the company’s marketplace performance was very strong in the fourth quarter of FY 2021. This was despite a softer end to the period due to COVID-19 related restrictions and lockdowns in major capital city markets across Australia.

For the three months ended 30 June, Airtasker reported Gross Marketplace Volume (GMV) of $39.4 million. This represents a 39.1% increase compared to the prior corresponding period.

In light of this strong quarterly performance, the company has outperformed its guidance in FY 2021.

Management advised that it expects to report GMV of $153.1 million for the full year. This exceeds both its prospectus forecast of $143.7 million and April’s upgraded guidance of $148 million to $152 million.

Another positive that may be supporting the Airtasker share price is that this has all been achieved while maintaining costs below prospectus forecast levels for the full year.

What about FY 2022?

The company notes that the recent lockdowns in Sydney and other capital cities are expected to have a temporary impact on first quarter GMV in FY 2022.

However, due to the company’s strong performance going into the lockdowns and sharp marketplace recoveries previously seen, it is confident that there will be no impact to Airtasker’s full year FY 2022 outlook. Further details will be provided on the company’s expectations for FY 2022 next month when it release its first full year results as a listed company.

The Airtasker share price is now up 81% since its IPO in March.

The post Airtasker (ASX:ART) share price storms 5% higher after smashing FY 21 guidance 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 recommended Airtasker Limited. 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 HomeCo Daily Needs REIT (ASX: HDN) share price won’t be going anywhere on Monday.

This morning the convenience-focused retail property company’s shares were placed in a trading halt.

Why is the HomeCo Daily Needs share price halted?

The HomeCo Daily Needs share price was halted this morning after it announced a new acquisition and accompanying placement.

According to the release, the company has acquired Town Centre Victoria Point in Queensland for a total purchase price of $160 million. This price represents a fully leased yield of 4.75%.

The release advises that Town Centre Victoria Point is anchored by highly productive major national and ASX-listed tenants. These include Woolworths Group Ltd (ASX: WOW), Bunnings, Healius Ltd (ASX: HLS), and Endeavour Group Ltd (ASX: EDV).

Management notes that the acquisition is aligned to its target model portfolio of 60% Neighbourhood, 22% Large Format Retail, and 18% Health & Services.

Placement

In order to fund the acquisition, the company is undertaking a fully underwritten institutional placement to raise $70 million at an issue price of $1.45 per new share. This represents a discount of just 3% to its last close price.

Positively, management expects the acquisition to be immediately accretive to earnings in FY 2022. Furthermore, it notes that its balance sheet gearing is expected to be at the mid-point of target 30–40% gearing range post-transaction.

Another positive is that, post-transaction, management sees increased potential for inclusion in both the S&P/ASX 300 Index and FTSE EPRA NAREIT’s Global Real Estate Index at the September 2021 rebalance.

Fund Portfolio Manager Paul Doherty said: “Opportunities to acquire an asset of this quality and scale are rare, particularly one which complements our strategy and existing portfolio so strongly. This well-located flagship convenience property is anchored by high quality, strongly performing tenants on long term leases with attractive organic growth. In addition, the property offers significant long-term potential to drive enhanced returns through development by capitalising on the property’s significant expansion potential.”

The post HomeCo Daily Needs (ASX:HDN) share price halted for placement and major acquisition 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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Shares in Qube Holdings Ltd (ASX: QUB) are slightly higher today following news the company’s set to sell property assets for $1.67 billion. The Qube share price is currently trading at $3.20 – 0.79% higher than Friday’s close.

Today, the import and logistics service provider announced it has entered a commercial term sheet to sell warehouses and property at Moorebank Logistics Park.

However, Qube also said its automation of Moorebank’s IMAX Terminal was likely to be an ongoing weight on the company’s overheads.

Let’s take a look at today’s news from Qube.

Offloading Moorebank assets

Qube announced today it has entered agreements to sell assets at the Sydney logistics park to LOGOS Property Group, part of the LOGOS Consortium.  

The sale will see LOGOS paying $1.36 billion upfront, while another $312 million will be deferred. The payment is subject to numerous conditions.

Qube says the price reflects the park’s strategic value and its future rental value. Not included in the sale, is Qube’s intermodal rail terminals at Moorebank.

The logistics company said the sale would allow it to focus on its core logisitics business. It will use the proceeds to pay off debt, pursue growth opportunities, and explore capital management initiatives.

Qube believes, following the sale, it will benefit from future logistics activity at Moorebank, without needing to fork out for its development.

Subject to the Foreign Investment Review Board’s approval, the sale will be completed in the final quarter of 2021. 

Following the sale, LOGOS is responsible for funding the development of the logistics park. This includes the development of Woolworths Group Ltd‘s (ASX: WOW) warehouse distribution facilities.

Qube advised it would still pay for the automation of Moorebank’s IMEX Terminal and the development of its Interstate Terminal. The company expects to spend between $200 million and $300 million on works at the terminals.

Part of the deferred $312 million will fund the first stage of construction of the Interstate Terminal.

Qube also announced the IMEX Terminal’s automation will be finished years before it is required. This means Qube is unlikely to quickly recover its costs.

So far, Qube has spent around $305 million on the terminal’s automation. It still needs to spend around $80 million to finish the upgrade.

Qube’s upcoming full year results will discuss the long-term cost of the automation.

Commentary from management

Qube managing director Paul Digney commented on the planned sale, saying:

We believe that the transaction with the LOGOS consortium allows Qube to realise a strong value for the [Moorebank] property assets, de-risks delivering the leasing and development of future warehouses and significantly reduces Qube’s ongoing capex requirements.

Further, the transaction positions Qube strongly to focus on growing its core logistics business, while retaining exposure to long-term growth in container volumes at [Moorebank] through terminal and logistics activities.

Qube share price snapshot

The Qube share price is doing well on the ASX – it’s gained 6% year to date.

It is also 15% higher than it was this time last year.

The company has a market capitalisation of around $6 billion, with approximately 1.9 billion shares outstanding.

The post Qube (ASX:QUB) share price lifts on $1.67 billion asset sale update appeared first on The Motley Fool Australia.

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

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

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

Are you thinking about investing in Bitcoin (CRYPTO: BTC)? You aren’t alone. The virtual currency has become a very popular investment and with good reason. It’s the most well-known of the cryptocurrencies. And unlike many other tokens, at least some businesses actually accept it as a payment method. It’s also a favorite of celebrity investors and financial gurus including Elon Musk and Suze Orman.

But before you bite the bullet and purchase some, it’s crucial to make sure adding it to your portfolio is actually a smart move. And to do that, you need to consider your investment goals.

That’s because there’s really only one good reason to add the virtual currency to the list of the investments you own.

You should invest in Bitcoin if this is your goal

If you’re hoping to make a quick profit on Bitcoin, or your investing objective is to become a crypto millionaire, adding it to your portfolio could be a decision you’ll come to regret.

That’s because timing your investment perfectly to see short-term gains is really difficult when the price of the cryptocurrency fluctuates so much. And Bitcoin would likely need to see much more widespread adoption before it has a solid chance of becoming a millionaire maker for most people who invest reasonable sums in it.

But there is a good reason to add Bitcoin to your portfolio. In fact, the best and only reason why most investors should purchase some of the tokens is if doing so helps to build a diversified portfolio. In other words, if you’ve made a reasoned choice that you should have some exposure to cryptocurrencies along with your other assets, then Bitcoin could be a good buy.

Diversification is essential to successful investing. When you spread your money around a broad mix of different assets, you stand a better chance of some of them performing really well — even if others don’t. You also reduce your risk from any individual investment, since you are limiting the amount of cash you put into it.

Bitcoin is one of those assets that could outperform your expectations, potentially providing much higher returns than many other investments out there. That’s because it’s one of the safer crypto investments due to the solid team behind it, its established reputation, and the innovative blockchain technology it’s built on.

But you could also lose most of your money if it falls out of favor due to its environmental effects or because other cryptocurrencies turn out to improve upon its payment capabilities. The crypto market is also largely unregulated, relatively new and untested, and is extremely volatile — much more so than the stock market. And the cost of virtual currencies can often become divorced from their underlying value, driven instead by social media hype and celebrity tweets.

Because of the outsize risks, it’s especially essential to purchase Bitcoin or any other cryptocurrency only as part of a well-balanced portfolio that gives you exposure to an appropriate level of risk based on your investment timeline and goals.

So if you’re thinking about adding Bitcoin to your portfolio, make absolutely sure that it fits within your broader pool of investments in a way that’s likely to help you accomplish your long-term objectives. If you do that, you should hopefully end up happy with your decision in the long run.

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

The post This is the only reason to invest in Bitcoin appeared first on The Motley Fool Australia.

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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.

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

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The Crown Resorts Ltd (ASX: CWN) share price is under pressure on Monday morning following the release of an earnings guidance update.

At the time of writing, the casino and resorts operator’s shares are down 1% to $11.81.

What did Crown announce?

According to the release, the company highlights that it has suffered from significant disruption caused by the COVID-19 pandemic. This includes its properties being closed for various periods of time and COVID-19 related operating restrictions applying throughout the period. The latter has seen capacity limits and physical distancing protocols.

In light of this, for the full year ended 30 June 2021, Crown expects to report theoretical earnings before interest, tax, depreciation and amortisation (EBITDA) before closure costs and significant items of between $240 million to $250 million.

This will be down more than 50% on FY 2020’s theoretical EBITDA before closure costs and significant items of $503.8 million. That itself was down 37.2% on FY 2019’s numbers.

Including closure costs, Crown’s theoretical EBITDA before significant items is expected to be between $90 million and $100 million.

On the bottom line, Crown is expecting to record a statutory loss after tax for the full year. However, this statutory result remains subject to review by the Board and management and Crown’s external auditors.

In addition to this, the company revealed that it expects to report net debt (excluding working capital cash) of approximately $900 million at the end of FY 2021. It notes that the $450 million project finance facility to support the construction of Crown Sydney has been repaid from settlements to date from Crown Sydney apartment sales.

What about FY 2022?

Crown notes that it continues to operate in an uncertain environment with a number of factors expected to impact its financial performance throughout FY 2022.

These include COVID-19 related closures and operating restrictions, a significant player review, investments in resourcing and capability, and regulatory processes.

In respect to the latter, management notes that the company is the subject of a number of regulatory processes. It has warned that the outcome of those regulatory processes may potentially impact Crown’s financial performance. It also expects to incur increased corporate costs throughout the 2022 financial year, including legal, consulting and associated costs, whilst these regulatory and any resulting processes continue.

The post Crown (ASX:CWN) share price lower following earnings guidance update 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Amazon (NASDAQ: AMZN) has been the e-commerce king for more than two decades because it’s been able to put together a simple shopping solution with a nearly unlimited variety of products. And no retailer, brick-and-mortar or online, was able to keep up with this incredible growth stock.

The shopping dynamic has changed in the last few years with the growth of Shopify (NYSE: SHOP), Square (NYSE: SQ), and even Etsy (NASDAQ: ETSY). But the biggest threat I see to Amazon long-term is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google getting its act together in shopping. Here’s why it’s Google that could create the biggest challenge for Amazon.

Google takes shopping seriously

Google has long had a shopping tab in its search bar and sometimes shows shopping results on top of links, but shopping hasn’t been key to the company’s business. That may be changing, since Google as a company wants to provide answers to users’ queries, not just blue links that take people off its website. This is why snippets are shown after many searches and the company is developing tools to answer people’s questions within Google.

Since Google is one of the most likely options for initial shopping inquiries, it has an incentive to serve customers exactly what they are shopping for. Through recent partnerships with Shopify and Square, it’s doing that on its website. Sellers on Shopify and Square can use the Google Merchant Center to promote products in Google and even sell on Google’s site with their Shopify or Square back end. Google is the top of the shopping funnel, directing users to the most relevant products, even if it’s matching extremely niche buyers and sellers.

This is a change to how Google has long treated shopping searches. Google used to be a funnel to Amazon with Amazon ads often lining nearly every search. That helped Amazon become the go-to location for shoppers, especially with Prime shipping, and effectively cut Google out of the equation as shoppers started using Amazon as their initial search tool.

But the explosion of small shops and niche product combined with Amazon’s continued squeeze of third-party sellers has opened up an opportunity for a new selling ecosystem. Buyers who aren’t stuck within the Amazon ecosystem are now looking for diverse and niche products on the internet, and what better place to look than Google?

Google pulls apart Amazon’s integration

The last 20 years at Amazon were all about integrating the shopping experience in the name of consumer convenience. Amazon started by owning the website and the warehouse, but now it owns planes and trucks and payment processing and even computer servers around the world. As it grew, it pulled third-party sellers into the equation, allowing them to sell their products on the Amazon platform; this was a win for sellers who weren’t reaching customers in other ways online.

But in recent years Amazon has started to squeeze third-party sellers. There are fees for handling products and other services, of course, but Amazon is also finding ways to charge more for advertising to reach customers within the Amazon platform. Most customer searches on Amazon’s website or app will likely be led with sponsored ads, which retailers have to pay for. Amazon Unbound author Brad Stone called this “pay-to-play” against Amazon’s own brands in an interview with Ben Thompson on Stratechery recently. This addition of advertising revenue has made Amazon more profitable, but it has to leave third-party sellers in a tough spot with a choice to eat the cost, raise prices to maintain margins, or look for another platform.

Google, Shopify, and Square are trying to attract sellers who want an option other than living within Amazon’s ecosystem. And by using this network of companies, retailers and produce makers can sell directly to consumers — collecting information like names, emails, and addresses, and building a long-term relationship that includes marketing new products to highly qualified customers.

Amazon built an integrated ecosystem where it was the platform, search tool, payment platform, warehouse, shipper, and more for third-party retailers. Google’s strategy to upend Amazon is pulling that integration apart. The game-changer in this disruption, in my opinion, is the proliferation of simplified checkout options from Apple (NASDAQ: AAPL), Shopify, Square, and Paypal (NASDAQ: PYPL). Like Amazon, they save your shipping address and credit card information so that checkout can be a breeze, but they still allow the retailer to collect valuable customer information. As this stack of services grows and improves, it’s a formidable threat to Amazon’s retail business.

Amazon’s biggest advantage

What Amazon still has going for it is Prime and the inherent momentum in the market. Prime and all of its ancillary benefits have the effect of locking consumers into the Amazon ecosystem because they pay upfront for “free” shipping, so customers might as well keep shopping on Amazon.

Momentum can be equally important because shoppers typically stay with their preferred shopping method for a period of time, even if there are cheaper, faster, or better shopping options available. Amazon could simply ride the momentum to growth for the next decade, but I think it’s clear Google and its partners are going to take market share.

The future of retail

Amazon had a big head start in e-commerce, but online shopping has begun to change once again as it’s become easier and easier to build an online store, check out quickly and securely, and market to a niche audience of customers. Services that Shopify, Apple, Square, and others have brought to the market have made this transformation from integrated e-commerce to a more disparate model possible.

The key piece of this disruption of Amazon could be Google’s role as a place of discovery for shoppers. Shopify and Square aren’t built to be discovery tools, so companies need to find ways to reach qualified customers. Who better to make that match than Google? If the strategy works and Google becomes the first place people go to when shopping, it could have a chance to threaten Amazon’s dominance of e-commerce long-term.

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

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Travis Hoium owns shares of Apple, PayPal Holdings, and Square. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Etsy, PayPal Holdings, Shopify, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, 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.

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

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ASX lithium shares could power up on the back of an upgrade by a leading broker.

The upcoming introduction of Euro 7 standards by the European Union is a key reason behind Macquarie Group Ltd’s (ASX: MQG) decision to lift its forecasts for the battery making commodity.

Euro 7 could accelerate phasing out of combustion engines sooner rather than later.

The new standards should be the final policy prior to all cars becoming zero-emission in the EU.

Stronger battery demand powers upgrade for ASX lithium shares

“The Macquarie commodity strategy team took a deep dive into the ESS market and raised 2021-23E battery demand forecasts by 13%/13%/17%, with policy tailwinds and lower battery costs,” said the broker.

“The team saw lithium carbonate, dry separator and iron phosphate precursor players as key beneficiaries.”

Combustion engines decelerating

The major car manufactures have already made plans to go all electric over the coming years. Audi was one of the latest. It will stop making internal combustion engine (ICE) vehicle in 2026.

“We believe this is part of Audi’s preparation for the upcoming Euro 7 emission standards, which could be implemented as early as 2025,” added Macquarie.

“While details of Euro 7 are still work in progress, it is reported that the stricter option being studied could see CO2 and NOx limits halved from the current level.”

What’s more, the introduction of Euro 7 is likely to put pressure on other countries to adopt tighter emission standards too.

This in turn will hasten the adoption of electric vehicles at the expense of those with combustion engines.

ASX lithium shares that are key buys

The more bullish outlook for batteries prompted Macquarie to make material earnings upgrades for ASX lithium shares.

The picks of the sector are those with domestic operations, which will benefit from the weaker Australian dollar.

These ASX shares include the IGO Ltd (ASX: IGO) share price and Pilbara Minerals Ltd (ASX: PLS) share price.

Macquarie is recommending investors buy both shares with a 12-month price target of $9.50 and $1.80 a share, respectively.

Bright outlook for M&A candidates

Having said that, the broker is also favourably predisposed to the Galaxy Resources Limited (ASX: GXY) share price. This is ahead of its merger with Orocobre Limited (ASX: ORE).

Both of these ASX lithium shares are rated “outperform” by Macquarie. The broker’s 12-month price target on the Galaxy share price is $4.70 and Orocobre share price is $7.80 a share.

The post ASX lithium shares could get boost from Macquarie (ASX:MQG) upgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited, Galaxy Resources Limited, Orocobre Limited, and IGO Ltd. 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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Vulcan Energy Resources Ltd (ASX:VUL) share price will be one to watch in early morning trade. This comes after the clean lithium provider announced an update to its Zero Carbon Lithium Project.

At close of trade on Friday last week, Vulcan shares finished the day at $7.99 – up 2.17%. The All Ordinaries Index (ASX: XAO) closed the trading day at 7,587 points – up 0.6%.

Let’s take a closer look at what the company released in early morning market news.

What did Vulcan announce?

Vulcan shares could be on the move following the appointment of two key companies to help advanced its lithium project in Germany.

In today’s statement, Vulcan advised it has engaged key consultants to help execute its Definitive Feasibility Study (DFS).

Vulcan is aiming to become the world’s first lithium producer with net-zero greenhouse gas emissions. Its Zero Carbon Lithium Project is seeking to produce a lithium-hydroxide chemical product for the European electric vehicle battery market.

The company has appointed international lithium plant engineering specialists Hatch Ltd and international energy engineering specialists GLJ Ltd.

Hatch will take responsibility for the lithium chemicals part of the DFS. This includes the engineering and execution planning for the Direct Lithium Extraction (DLE) plants and Central Lithium Plant (CLP).

In addition, GLJ is tasked with compiling the overall report, economic modelling and sign-off on certain aspects of the DFS. This relates to geological engineering and geothermal renewable energy.

Vulcan will also use in-house teams from its recent acquisitions to execute the DFS. The company’s lithium chemistry and chemical engineering team will focus on laboratory and pilot plant work.

Meanwhile, Gec-co and GeoT will work towards geothermal engineering and development for above-surface and below-surface, respectively.

Vulcan is aiming to complete the DFS within the next 12 months.

Vulcan managing director Dr Francis Wedin:

Following a few months of successful pilot operation, as planned we are now commencing our Definitive Feasibility Study towards our world-first, combined renewable energy and lithium battery chemicals project in Germany.

Hatch Ltd and GLJ Ltd, both leaders in their fields, will be liaising with our expert in-house teams to execute on the DFS. We are looking forward to an exciting and challenging 12 months ahead, as we execute on our unique Zero Carbon Lithium Project.

Vulcan share price summary

The Vulcan share price has jumped by more than 1,300% over the past 12 months. The company’s shares reached an all-time high of $14.20 in January this year, before pulling back.

On valuation grounds, Vulcan has a market capitalisation of around $866 million, with approximately 108 million shares outstanding.

The post Why the Vulcan Energy (ASX:VUL) share price will be in the spotlight today appeared first on The Motley Fool Australia.

More reading

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• The Vulcan Energy (ASX:VUL) share price is rising today

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

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There are a number of ASX shares that many brokers like the look of.

If multiple brokers all think that a business is an opportunity, then it could be worth thinking about if that business is an investment idea There’s also potential for all of the brokers to all be wrong at the same time.

Here are two ASX shares that are highly rated by brokers:

Metcash Limited (ASX: MTS)

Metcash is currently rated as a buy by at least three brokers.

One of the brokers that likes Metcash is Credit Suisse, which has a price target of $4.16.

The broker is paying attention to how the non-food earnings of the business are growing, particularly the hardware segment.

The ASX share recently reported its FY21 result. It reported revenue was up around 10%, with group underlying earnings before interest and tax (EBIT) up 19.9% and underlying net profit up 27.1%.

Hardware saw a stronger growth with sales growth of 24.7% to $2.6 billion with “significant” growth in DIY sales and a return to growth in trade. Online sales went up 122%. Hardware EBIT increased 61.5% to $51.8 million with the EBIT margin increasing 130 basis points to 5.3%.

Metcash increased its ownership of Total Tools from 70% to 85% for an acquisition cost of $59.4 million.

The broker also pointed to the higher dividend payout ratio, the buyback and attractive valuation as reasons to like Metcash.

According to Credit Suisse, Metcash is valued at 15x FY22’s estimated earnings.

Austal Limited (ASX: ASB)

Austal is a shipbuilding business. It’s currently rated as a buy by at least three brokers.

One of the brokers that likes the shipbuilder is Credit Suisse. The broker points to success with US contracts as a reason to be positive. It has a price target of $2.75, which suggests a potential upside of more than 30% over the next 12 months.

For example, it recently announced it had been awarded a US$44 million Littoral Combat Ship (LCS) contract modification.

The ASX share also announced that it had been awarded a US$44 million contract modification for the design, procurement, production implantation and demonstration of autonomous capability on Expeditionary Fast Transport (13), the future USNS Apalachicola.

In terms of guidance, Austal said a couple of weeks ago that it’s expecting to generate FY21 EBIT of between $112 million to $118 million. That was a reduction of guidance due to delays experienced on programs and associated costs caused by COVID-19 related border closures, travel restrictions and resourcing challenges that are impacting Austal shipbuilding operations in Australia and the Philippines.

According to the Credit Suisse estimates, Austal is valued at 9x FY22’s estimated earnings.

The post 2 ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

More reading

• ASX 200 down 0.3%: SEEK record high, IGO jumps, Lendlease downgrade
• These were the worst performing ASX 200 shares in June
• Top ASX shares to buy in July 2021
• Bullish brokers drive Metcash (ASX:MTS) share price to multi-year high
• Which ASX 200 shares are standing tall after today’s volatile session?

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. owns shares of and has recommended Austal Limited. 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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