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.

Bitcoin (CRYPTO: BTC) is going through a rough patch as it has plunged nearly 50% since its previous high in April 2021. The flagship cryptocurrency lost $1 trillion in market cap last month, and this downward spiral has a mix of factors at play. In May, Elon Musk’s tweet about Tesla not accepting Bitcoins wiped off 10% of its value. Later that month, China’s crackdown on cryptocurrencies pushed Bitcoin below $30,000. And the IRS calling for stringent reporting on large crypto transfers added to the woes. 

So, has the tide turned against Bitcoin permanently? The situation might be rattling for new investors, but if you have traced the journey of Bitcoin, this is nothing new. According to analysts, investors who owned Bitcoin for one to six months spurred the sell-off. Nevertheless, institutional investors, big corporations, and analysts are still pretty confident of Bitcoin’s price rebound. 

Here are three main reasons to explain that the current Bitcoin crash is nothing to worry about.

Institutional investors are still stocking up on Bitcoin

Institutional investors include large public and private companies as well as fund houses that invest in Bitcoin-related products.

Jack Dorsey-led Square invested an additional $170 million in Bitcoin in February 2021. In the same month, Microstrategy spent more than $1 billion in high-yield debt to acquire additional bitcoins. In March 2021, Morgan Stanley became the first big U.S. bank to offer access to Bitcoin funds to its high net worth clients. 

Institutional investors aren’t just hooked on Bitcoin for the price appreciation. They view the currency as a credible store of value and a hedge against economic instability. The continued influx of large corporations can single-handedly push Bitcoin into the mainstream. Bloomberg claims rapid bitcoin adoption indicates a bullish growth phase. The media giant also predicted bitcoin’s price to reach $400,000 by the end of Q4 2021.

Bitcoin sees increased acceptance from countries

Besides institutional investors, many governments are also viewing cryptocurrencies in a new light. El Salvador recently declared Bitcoin as a legal tender alongside the U.S. dollar. Speculation is rife that India might also recognize Bitcoin as an asset class. Moreover, the U.S., UK, Finland, Canada, and Germany already have a positive stance over Bitcoin. These initiatives could perpetually alter the way investors and regulators view Bitcoin or other cryptocurrencies and make them mainstream. 

Bitcoin has seen a bull run after halving events

50% of Bitcoins were mined by January 2009, but the remaining 50% will be mined in more than 120 years. This is because of a unique event called ‘halving’ that Bitcoin undergoes every four years. The miners’ reward is reduced to half every four years or after mining every 210,000 blocks. Thus, the supply of Bitcoin relative to the demand declines, and the price climbs. Historically, Bitcoin has always experienced an upward spiral after a halving event. After the first halving in 2012, the price of Bitcoin surged 90x. 

The next event is due in 2024, and we can expect the cryptocurrency to see a bull run after that. However, the market has now matured since 2012, and the impact might not be too pronounced this time. Also, it could take four to six months for the price appreciation to fructify. Hence, you may buy Bitcoin before the halving event, but only if you plan to hold it over the long term. 

A word of caution

Though the current scenario suggests otherwise, the game is not over for Bitcoin. It has an inherent value, and a few tweets cannot shake it.

As for the regulatory landscape, I would say that stricter laws are indeed awaiting the cryptocurrencies. But better regulation will only enhance the credibility and prompt investors to pick Bitcoin with more conviction. 

Bitcoin price movements are a simple play of supply and demand. Unlike stocks, there aren’t any fundamentals at play. So when investors are optimistic about the future of cryptocurrency, they buy more of it, and the price climbs. On the contrary, when their belief in the currency begins to shake, they sell-off.

There is no doubt that Bitcoin has come under pressure, and it could take some time to recover due to regulatory headwinds and global macro risk. However, further declines below this point, if any, will be transient. 

Bitcoin is a highly volatile asset, and you can hold them as a part of a diversified portfolio over the long term. However, don’t be surprised to see such dramatic price fluctuations periodically because that’s very typical of cryptocurrencies. So, be sure to invest money only to the extent that you are OK to lose. Also, don’t try to time the markets because, with an asset so volatile, timing can bring a rude shock.

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

The post Bitcoin crashed nearly 50% last weekend — Should you worry? appeared first on The Motley Fool Australia.

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• Shiba Inu token tops the 24-hour crypto gainers list…and it’s not Dogecoin!
• ‘Big Shorter’ Michael Burry calls biggest share market bubble of all time
• Is cryptocurrency investing or gambling? 3 things you need to know
• 4 ASX shares to gain exposure to international market growth: fund manager

Namrate Sen doesn’t own any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Square, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended MicroStrategy. 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 Coles Group Ltd (ASX: COL) share price will be one to watch on Thursday.

This follows the release of the supermarket giant’s strategy update this morning.

What was included in its update?

Coles provided the market with an update on its Refreshed Strategy, which was announced in 2019.

According to the release, the company is tracking well against most key strategic metrics. One of those is its sales density target. In FY 2019 its supermarkets were generating sales of $16,704 per share metre. This has now improved 6.5% to $17,789 per square metre.

Also progressing well is its cost cutting. Coles is targeting a $1 billion reduction in costs by FY 2023. Today, management advised that it is on track to deliver in excess of $550 million in cost savings by the end of FY 2021. Supporting this has been the optimisation of its stores and supply chain through artificial intelligence and the opening of innovative store formats.

Another metric that has been improving is customer satisfaction. Customer satisfaction has lifted from 88% in FY 2019 to 90% today.

And while the company’s market share is below target and has softened since FY 2019, management notes that this has been driven by COVID-19 headwinds. Having fewer neighbourhood stores and more metro and shopping centre stores impacted its market share at the height of the pandemic. However, the local shopping trend is now unwinding and management appears to be expecting market share growth to resume.

Online shopping update

Coles also gave investors an update on its online business, revealing strong growth in its customer numbers, penetration, and sales.

But it isn’t stopping there. It is continuing to invest in Click & Collect and its home delivery service. In respect to the latter, same day delivery will soon be available in over 400 stores and the company is aiming to increase its regional delivery capacity and reach.

Positively, it notes that its Ocado partnership is going to enable a step-change in ecommerce. It expects the partnership to double its online product range, expand delivery slots and locations, and support best-in-channel economics and operating costs.

All in all, management appears confident the actions it is taking with create value for shareholders in the future.

The post Coles (ASX:COL) share price on watch following strategy update appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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 COLESGROUP DEF SET. 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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Cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have caught fire in the past year, with even some institutional investors giving the thumbs up.

The industry has always faced the criticism that the assets do not have any intrinsic value. The value of the currency is purely driven by supply and demand.

This is not to mention how the anonymity of ownership and transfers allow criminals to use it as a way to extort money.

The most prominent example was this year’s ransomware attack on Colonial Pipeline. With a large swathe of the United States facing a fuel shortage, the company gave the blackmailers almost US$5 million of Bitcoin to restore operations.

These downsides haven’t changed, so why are cryptocurrencies now gaining ‘mainstream’ acceptance?

The Motley Fool canvassed the view of 4 share market experts to hear what they think of digital currencies.

Crypto will go nowhere

Frazis Capital Partners portfolio manager Michael Frazis predicts cryptocurrencies will stay flat in the long run.

“About a decade ago there were all kinds of bull and bear markets around gold — it’s more or less where it traded 10 years ago,” he told The Motley Fool.

“I think something similar is in store for crypto — sideways movement.”

He acknowledged there’s now “enormous institutional investor demand” and original use cases not fulfilled by traditional assets. 

This would continue to drive demand, but there were also considerable headwinds.

“It will be hard for cryptocurrency to sustain its ~US$2 trillion peak given the entire global equity market is around US$100 trillion,” said Frazis.

“Currently, its market cap is about in line with the largest global tech company. Of course, this isn’t apples-to-apples but is a useful sense check.” 

How do you handle crypto volatility?

Medallion Financial Group managing director Michael Wayne told The Motley Fool that his knowledge of cryptocurrencies was “limited”. But as a layperson, he has many questions.

“Who controls the cryptocurrency? Who regulates the cryptocurrencies? Who regulates the market exchanges?”

Wayne also said the volatility stopped them from becoming “a reasonable means of transaction”.

“Would an average person accept your salary paid in cryptocurrency, or cryptocurrency as a form of payment for a good or service, knowing there’s a chance the purchasing power of that currency could fall 30% overnight?”

There were knowledgeable people investing in digital currencies with valid investment theories, admitted Wayne.

“I wish these people the best luck but also caution that there’s an equally as good chance it could all end in tears.”

Bitcoin is narrative-driven

Montgomery Investment Management portfolio manager Joseph Kim didn’t have an opinion either way about the investment value of cryptocurrencies.

His only concern was the old ‘intrinsic worth’ argument.

“I just see them as an expression of making fiat with a popular narrative for Bitcoin — that is, limited supply.”

Bitcoin isn’t an investment

Marcus Today director Marcus Padley, like Wayne, is put off by the volatility of digital currencies.

The worth of one Bitcoin has gone from about $40,000 at the start of the year to more than $80,000 in April, to now $52,533.

“What that tells me is that Bitcoin isn’t an investment — it’s too volatile. Certainly not for my [client] demographic, as most of my members are over the age of 60,” he told ABC News Breakfast on Tuesday.

“It’s too much of a gamble. It’s ‘unannualisable’.”

Padley also expressed concern that the public image of cryptocurrencies has shifted since the Colonial Pipeline incident.

“It’s proliferating crime. Cryptocurrency is supposed to be used for tax evasion and terrorism. They’re now calling it terrorism — ransomware.”

This tipping point could mean that regulation could be forthcoming.

“Certainly putting the whole of Texas without heating is not something you want to do if you want your cryptocurrency to be left alone,” said Padley.

“The FBI went out and recovered some of the ransom cryptocurrency, and broke this anonymous seal — so watch out.”

The post What 4 share market experts think of cryptocurrencies appeared first on The Motley Fool Australia.

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Tony Yoo owns Bitcoin and Ethereum. 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.

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The massive rotation to value shares is done and dusted and it’s now time to return to the growth winners that carried 2020.

That’s the opinion of Nucleus Wealth head of investments Damien Klassen, who revealed his team repositioned its portfolios earlier this month.

“We have… called time on the value trade,” he said in a memo to clients. 

“The current inflation spike looks to be short term and will likely recede over the next 6 months.”

Growth is back, baby

The Nucleus team has returned to the growth shares that served investors so well during the post-crash rally last year.

“We have made some substantial changes to reduce weight to the stocks we perceive will be the losers from the new environment: banks, resources and value stocks,” said Klassen.

“The replacements are similar to the winners from 2020: quality growth — think profitable technology — and defensive.”

The strategy is a classic “barbell portfolio” with growth shares at one end and interest-rate sensitive defensive stocks at the other.

By “quality” growth shares, Klassen clarified he meant “stocks that can grow considerably above-trend” that will look appealing in a low-growth world.

“If you were looking for maximum returns, you might buy ‘junk’ growth stocks — ones with little to no earnings which often perform best in this type of environment,” he said.

“We look at our portfolios differently though. Risk is an important factor, and the junk growth stocks are far from cheap and have as much downside as they do upside.”

Inflation now is not the same as the 1970s

Inflation ran out of control in the 1970s, causing grief for the entire global economy.

But Klassen said that the fundamental forces controlling prices and wages were entirely different now.

“The rules have changed since then. We looked at technology being inherently deflationary. Net result: a financial system overengineered to prevent inflation.”

The rotation back to growth now also means investors should look at moving their money from the ASX to overseas shares.

“Australian equities have been a good source of investment performance in recent months. Now, they are facing a higher risk of reversal,” said Klassen.

“It is time to use the high prices here to switch to international equities. We are building the defensive side of the portfolio up, changing out of value winners like resources, banks and cyclical industrials. A more aggressive switch into quality/growth is ahead if we see the opportunity developing.”

The post Value shares are done, we’re back to growth: analyst appeared first on The Motley Fool Australia.

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Tony Yoo 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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As well as being home to countless bank and mining shares, the Australian share market is home to a good number of promising small caps.

Two small cap shares that could be worth watching closely are listed below. Here’s what you need to know about them:

Adore Beauty Group Ltd (ASX: ABY)

The first small cap to watch is Adore Beauty. It is Australia’s leading online beauty retailer with almost 700,000 active customers.

Adore Beauty has been growing very strongly during the pandemic thanks to the shift online. And while its growth in FY 2022 is likely to be far more subdued as it cycles heightened sales from the prior period and some shoppers return to physical stores again, it has been tipped to resume its strong growth once the tough comparisons ease.

This is especially the case given the relatively low penetration of online beauty sales compared to other Western markets. This gives it a very long runway for growth over the next decade according to analysts at UBS.

In light of this, its analysts currently have a buy rating and $5.60 price target on the company’s shares.

Over The Wire Holdings Ltd (ASX: OTW)

Another small cap to watch is Over The Wire. It is a one-stop-shop for information technology and telco services, including data networks, VoIP, hosting, security, and support. It was recently named in the Financial Times Top 500 High-Growth Companies Asia-Pacific 2021. And it’s not hard to see why.

Over The Wire has been a strong performer in recent years and this has continued in FY 2021. During the first half, the company reported a 17% increase in revenue to $50.3 million and a 28% jump in EBITDA to $10.5 million.

But perhaps the biggest positive from this is that almost all of its revenue is now recurring, with recurring revenue growing 25% to $45.9 million. This gives Over The Wire a firm foundation to build on in the coming years.

Canaccord Genuity is positive on the company. It currently has a buy rating and $4.85 price target on its shares. And while its shares have just breached this level, it could be worth keeping an eye on regardless.

The post 2 stellar small cap ASX shares to watch appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Over The Wire Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Over The Wire 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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With interest rates likely to remain low for some time to come, potentially even years, the yields on the ASX dividend shares listed below could be even more attractive than normal for income investors.

Here’s what you need to know about these dividend shares that have been rated as buys:

Scentre Group (ASX: SCG)

The first dividend share to look at is Scentre. After facing extremely tough trading conditions at the height of the pandemic, things are returning to normal again for this shopping centre operator. This bodes well for its earnings and dividend recovery in the coming years.

And with the Scentre share price still down meaningfully from its pre-pandemic highs, analysts at Goldman Sachs believe now could be a good time to invest.

A recent note reveals that its analysts have reiterated their buy rating and $3.60 price target on the company’s shares. Goldman believes Scentre is far more positively leveraged to inflation than any other Australian real estate investment trusts under its coverage.

The broker is forecasting dividends per share of 14 cents in FY 2021 and then 17 cents in FY 2022. Based on the current Scentre share price of $2.85, this will mean yields of 4.9% and 6%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to look at is this telco giant. After several years of difficulties because of the NBN rollout, Telstra is now free from this headwind and has a return to growth in its sights.

This is being driven by its significant cost cutting, rational competition, and its leadership position in 5G internet. In respect to the latter, the company is so far ahead of other telcos with its 5G network, that it has been tipped to grow its market share strongly in the coming years.

In addition to this, the company is in the process of offloading assets such as its towers to unlock value for shareholders.

Goldman Sachs is also a fan of Telstra. It currently has a $4.00 price target and is forecasting 16 cents per share fully franked dividends for the foreseeable future. Based on the current Telstra share price of $3.58, this will mean a 4.5% yield.

The post Why Telstra (ASX:TLS) and this ASX dividend share could be buys appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) faded as the day went on but managed to record a small gain. The benchmark index rose 0.1% to 7,386.2 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% higher this morning. This is despite it being a poor night of trade on Wall Street, which saw the Dow Jones fall 0.8%, the S&P 500 drop 0.55%, and the Nasdaq fall 0.25%.

US Fed brings forward rate hike plans

The weakness on Wall Street was driven by news that the US Federal Reserve has raised its expectations for inflation and brought forward the timeframe for when it will next raise interest rates. According to CNBC, officials indicated that rate hikes could come as soon as 2023, after previously saying in March that they saw no increases happening until at least 2024.

Oil prices mixed

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.4% to US$71.85 a barrel and the Brent crude oil price has risen 0.1% to US$74.04 a barrel. The latter is closing in on a multi-year high.

Gold price sinks

Gold miners Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) could tumble lower today after the gold price sank overnight. According to CNBC, the spot gold price is down 1.4% to US$1,830.60 an ounce. News that the US Federal Reserve has brought forward its rate hike plans has hit the precious metal hard.

Coles Strategy Day

The Coles Group Ltd (ASX: COL) share price will be one to watch today. This morning the supermarket giant is holding its virtual Strategy Day. As well as providing an update on the progress it is making with its Refreshed Strategy, it could potentially include a sales update for investors.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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 COLESGROUP DEF SET. 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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Arguably one of the best ways to generate wealth is to make long term investments. This is because by investing for long periods, it allows you to benefit from compounding.

But which shares would make good buy and hold investment options? Two to consider are listed below. Here’s why they are rated highly:

CSL Limited (ASX: CSL)

CSL is one of the world’s leading biotherapeutics companies and the name behind the CSL Behring and Seqirus businesses. CSL Behring is the global leader in plasma therapies, whereas Seqirus is the second largest influenza vaccines business.

Both businesses have been growing strongly in recent years and have been tipped to continue doing so in the future. This is due to their leading therapies and vaccines, increasing demand, and lucrative research and development pipelines.

In respect to the latter, CSL invests in the region of 11% of its sales into its research and development activities each year. This ensures that it has a pipeline of cutting-edge therapies with significant sales potential. One of those is clazakizumab, which is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion.

UBS currently has a buy rating and $330.00 price target on CSL’s shares.

Xero Limited (ASX: XRO)

Xero is leading cloud-based business and accounting solution provider to small and medium sized businesses. It offers businesses and their advisors a solution that provides deep cloud accounting functionality together with an ecosystem of over 800 third-party app partners to provide valuable access for small businesses to add point solutions where needed.

This offering is resonating extremely well with businesses across the world, underpinning very strong recurring revenue growth in recent years.

Pleasingly, the company still has a significant market opportunity to grow into. Management estimates that its total addressable market is worth NZ$45 billion at present and growing. This compares to FY 2021’s operating revenue of NZ$848.8 million.

Goldman Sachs believes the company is well-positioned for growth, particularly given its international expansion opportunity and its burgeoning app ecosystem. Combined, the broker believes Xero has a multi-decade runway for strong revenue growth.

Goldman Sachs currently has a buy rating and $153.00 price target on its shares.

The post 2 ASX shares that could be top buy and hold options appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. and Xero. The Motley Fool Australia owns shares of and has recommended Xero. 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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City Chic Collective Ltd (ASX: CCX) shares had a bumper day on Wednesday, surging to a new all-time high of $5.14 in intraday trading. By market close, the City Chic share price had edged slightly lower, finishing the day up by 4.29% to $5.12.

Let’s take a closer at some of the events that have helped boost the apparel, footwear and accessories retailer for plus-size women this year.

First we take Manhattan

The City Chic share price may be benefitting from a number of positive announcements over the last few months. Recent acquisitions of the Evans and Avenue brands have allowed the company to expand its footprint in the United States, the United Kingdom and Europe.

Specifically on the US opportunity, City Chic notes there is significant market share to be gained in the US$49 billion market. The company is attempting to build on its growth trajectory, with the cross-selling of City Chic products to Avenue customers and marketing campaigns to grow its customer base and re-engage existing customers.

In its presentation to investors on 5 May, City Chic announced it wants to lead ‘the world of curves’ — a women’s plus-size market forecast to grow by 7% annually. The company pointed to a number of factors underpinning its growth plans. Firstly, the average annual spend in the plus-size category is currently materially less than the rest of the women’s apparel market. Secondly, according to City Chic, there is an increasing population of plus-size women globally.

Also in the company’s presentation, City Chic said comparable store sales growth and customer numbers in the June half-year to date are accelerating. Structural tailwinds are also helping, as sales on the City Chic website in the US have returned to pre-pandemic growth rates. There is also City Chic’s clear focus on online sales, where the company represents 25% of total plus-size sales globally. City Chic believes it can grow that number significantly.

More acquisitions to come

As also reported by the Australian Financial Review last month, City Chic chief executive Phil Ryan, and chief financial officer Munraj Dhaliwal, told the Macquarie Australia Conference the group was cashed up, after raising $110 million last July.

Management also highlighted that acquisitions in new markets facilitate speed to market and enable the company to acquire new customers faster. Although, the company did point out its growth plans are not only acquisition-led. 

City Chic’s market entry into Europe is a key piece of the growth puzzle. The company points to a significant opportunity in the US$45 billion market and is well-progressed with its launch expected in the first half of FY22.

The numbers tell the story

Another catalyst that may be boosting the City Chic share price in 2021 could be the solid numbers that came out of the company’s half-yearly report released in February. City Chic showed sales growing 13.5% to $119 million. Furthermore, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 21.8% to $23.3 million with the EBITDA margin increasing from 18.2% to 19.6%.

City Chic’s online trade has also accelerated in the last 12 months. In the first six months of FY21, 42% of the company’s sales were transacted online.

City Chic share price snapshot

Following today’s gains, the City Chic share price is trading around 25% higher in 2021. The company’s shares have surged by around 20% in the past month alone. Over the last year, City Chic shares have jumped by around 88%.

Based on the current share price, City Chic has a market capitalisation of $1.2 billion.

The post City Chic (ASX:CCX) share price leaps to new all-time high appeared first on The Motley Fool Australia.

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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 S&P/ASX 200 Index (ASX: XJO) rose 0.1% to 7,386 points.

Here are some of the highlights from the ASX today:

AVITA Medical Inc (ASX: AVH)

The Avita share price went up over 12% in reaction to an update about its FY21 fourth quarter.

For the quarter ending 30 June 2021, to date it has seen total revenue of more than the FY21 fourth quarter guidance range of $8.2 million to $8.6 million.

The company said that based on the strength of both RECELL commercial revenue and BARDA related revenue, the company is raising its FY21 fourth quarter guidance to be in the range of $9.5 million to $9.7 million. That consists of between $6 million to $6.2 million of RECELL commercial revenue and $3.5 million of RECELL revenue associated with BARDA (that stands for the Biomedical Advanced Research and Development Authority within the Office of the Assistance Secretary for Preparedness and Response).

This revised RECELL commercial revenue guidance reflects a 55% to 60% increase over the prior year period and 30% to 34% increase over the third quarter of FY21.

Dr Mike Perry, Avita Medical’s CEO, said:

As people begin to return to normal activities after the confines of the COVID-19 pandemic, we have seen an increase in burn accidents requiring treatment with the RECELL System in burn centers across the country.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price increased by more than 1% in response to its Victorian claims update after severe storms and flooding.

The ASX 200 insurance giant said it had received around 4,300 claims as of 15 June 2021, predominately for property damage and expects claims to rise as residents return to their homes to inspect the damage.

IAG said that its net natural perils claim costs up to 31 May 2021 were approximately $660 million, including the net cost of Cyclone Seroja in Western Australia in April 2021.

Following the storms in Victoria and including estimated attritional peril costs in June, IAG estimates its FY21 net natural perils claim costs will be approximately $720 million to $743 million compared to the perils allowance of $658 million for this period and previous guidance of $660 million to $700 million.  

Shaver Shop Group Ltd (ASX: SSG)

The Shaver Shop share price fell more than 8% today after giving an update about its FY21 outlook.

Based on unaudited management accounts to May 2021 and the trading performance to the middle of June 2021, Shaver Shop’s board expects the company to generate net profit after tax of $16.75 million to $17.5 million.

Total sales are expected to come in a range of between $211 million to $213 million.

Net cash (no debt) at 30 June 2021 is expected to be between $6 million and $8 million.

Shaver Shop’s board said it remains pleased with the underlying trading performance of the business with customer service metrics remaining strong.

The post ASX 200 rises again, Avita jumps, Shaver Shop sinks 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. owns shares of and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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