The Purifloh Ltd (ASX: PO3) share price has been frozen after the company’s shares entered a trading halt this afternoon. At the time trading was halted, the purification and sterilisation company’s shares were sitting at $1.99, up 24.4% on yesterday’s close.

What’s going on?

Purifloh’s shares have been halted after investors drove the company’s share price 24% higher today. Additionally, the number of shares exchanged prior to the halt was 5 times greater than the average for a month.

Yesterday, the company posted a media release concerning the use of airborne prevention technology to minimise the risk of COVID-19 transmission in hotel quarantine.

Purifloh director Jon Evans said:

The recent COVID-19 outbreak in Victoria is the result of airborne transmission of the virus from hotel quarantine in Adelaide. While the long-term solution is clearly purpose-built facilities, in the short-term we need to set up those hotels with proven, effective airborne prevention transmission technology.

Furthermore, the press release stated that tests have shown Purifloh’s devices can destroy up to 99.9% of airborne contaminants.

While there has been no price-sensitive news out of the company today, the market could be speculating given the renewed attention on hotel quarantine processes this week as the Victorian lockdown rolls on and additional cases continue to be reported.

What next for the Purifloh share price?

Purifloh has yet to provide an additional update regarding its trading halt. At this point in time, the reason for Purifloh share price halt is unknown.

The post Purifloh (ASX:PO3) shares enter trading halt after surging 24% appeared first on The Motley Fool Australia.

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Australia’s top brokers have been busy adjusting their estimates and recommendations once again. This has led to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Australia’s top brokers have been busy adjusting their estimates and recommendations once again. This has led to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $149.00 price target on this payments company’s shares. The broker has been looking at app downloads in the United States during the month of May. It notes that Afterpay’s app was downloaded twice as much as it was a year earlier. It feels this is particularly impressive given that this is a seasonally quiet period. Outside this, Morgan Stanley remains positive on the company, believing that its recent launch in the European Union sets it up to build a global platform. The Afterpay share price is fetching $94.08 today.

Eagers Automotive Ltd (ASX: APE)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and increased their price target on this auto retailer’s shares to $17.50. The broker believes that Eagers Automotive is well-placed to benefit from favourable trading conditions which continue to see demand outstripping supply. This has led to the broker increasing its margin assumptions and making material upgrades to its near term earnings forecasts. The Eagers Automotive share price is trading at $15.96 this afternoon.

Healius Ltd (ASX: HLS)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this healthcare company’s shares to $4.70. The broker made the move after looking at current COVID-19 testing volumes. It believes Healius is well-placed to benefit from increasing demand for testing and appears to expect volumes to remain robust into FY 2022. The Healius share price is trading at $4.30 today.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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The energy sector is chalking up another day of gains as the outlook brightens for the oil price and a leading broker is urging you to buy this ASX share today.

The Brent crude benchmark has jumped by nearly 10% in two weeks from a low of US$65.11 to over US$70 a barrel.

ASX shares linked to the oil price have joined the party and most continued to rally today.

Broker lists one ASX energy share to buy

The Viva Energy Group Ltd (ASX: VEA) share price added 2.2% to $2.10, Oil Search Ltd (ASX: OSH) share price jumped 2% to $4.11 and Worley Ltd (ASX: WOR) share price gained 1% to $12.17.

But there’s one often overlooked ASX share that should be on your radar. This is the Karoon Energy Ltd (ASX: KSR) share price as Morgans reiterated its “add” recommendation on the stock.

The broker’s bullish call follows Karoon reaching a final investment decision (FID) on its Patola oil field.

Karoon production to double

“Given the high IRR (24%) and fast payback period (~3 years), we never saw much risk of Patola not reaching FID,” said Morgans.

“But the development should bolster market confidence in what we see as a low-risk/high-return organic growth profile that will double KAR’s current production.”

Karoon’s current production stands at around 12,500 barrels of oil equivalent per day (bopd). Management is expecting to produce 10,000 bopd from Patola starting from the March quarter of 2023.

Higher costs offset by other tailwinds

But it isn’t all good news. The capital expenditure (capex) on the project is higher than originally forecast. Bringing Patola into production is expected to cost US$175 million to US$195 million. That’s ahead of initial estimates of US$130 million.

“More than offsetting the higher capex was the debt KAR has secured,” said Morgans.

“Both larger (actual US$160m vs MorgE US$100m) and cheaper (actual 4.25% vs MorgE 5.5%) than we had expected KAR to be able to achieve. This is material for KAR’s cost of capital, which we have now adjusted lower.”

Karoon share price valuation uplift

The lower cost of debt means that the broker’s weighted average cost of capital (WACC) for the Karoon falls to 8% from 9.5%.

The lower the WACC, the higher the valuation on the Karoon share price. Additionally, the reduction in the expected Patola decline rate is a further boost to valuation.

These two positives more than offsets the higher-than-expected capex for the project.

Morgans increased its 12-month price target on the Karoon share price to $1.90 from $1.80 a share.

This implies a close to 40% upside for the shares.

The post Morgans picks this ASX share to buy for the oil recovery trade appeared first on The Motley Fool Australia.

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BetMakers Technology Group Ltd (ASX: BET) shares have been having a tough week following the company’s indicative proposal to acquire the wagering and media businesses of Tabcorp Holdings Limited (ASX: TAH). At the time of writing, the BetMakers share price has fallen 2.78% today to $1.05.

With today’s slide included, the company’s shares have slumped by 21.64% this week.

Let’s take a look at what’s been driving them lower.

BetMakers’ acquisition proposal

BetMakers released its acquisition proposal last Friday morning, to the dismay of the market. BetMakers shares slumped by more than 15% on that day alone.

If accepted, the proposal would see BetMakers acquire Tabcorp’s wagering and media business for $4 billion.

$1 billion would be paid in cash that BetMakers would get its hands on through debt financing.

The other $3 billion would be paid in new BetMakers shares – priced at a 15% premium to the BetMakers share price at the time of signing.

The acquisition would see Tabcorp shareholders given an approximate 65% interest in the merged BetMakers and Tabcorp wagering and media business.

BetMakers’ strategic advisor Matt Trip commented on the proposal, saying:

I am excited by the potential opportunity to reinvigorate the Tabcorp Wagering and Media business. There is significant potential for the business to grow in partnership with BetMakers and I hope to get the opportunity to support the Australian racing industry which relies on the success and growth of TAB

Tripp’s positivity hasn’t quite translated to the market, which has pushed the BetMakers share price down nearly every day since the indicative proposal was released.

Tabcorp did acknowledge the proposal, though it hasn’t responded further.

Tabcorp shares have ended the week not far from where they started – down 0.58% on last Friday’s close.

BetMakers share price snapshot

Despite the poor performance of the BetMakers share price over the past week, it’s still sitting around 55% higher than it was at the start of the year. It’s also gained more than 180% since this time last year.

The company has a market capitalisation of around $845 million, with approximately 812 million shares outstanding.

The post Why has the BetMakers (ASX:BET) share price fallen 22% this week? appeared first on The Motley Fool Australia.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with another solid gain. At the time of writing, the benchmark index is up 0.5% to 7,297.3 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

Appen Ltd (ASX: APX)

The Appen share price is down 6% to $12.29. This appears to have been driven by weakness in the tech sector and news that the artificial intelligence data services company’s CEO, Mark Brayan, has sold 109,430 Appen shares. Mr Brayan received a total consideration of $1.43 million for the shares. However, it is worth noting that the sale was made to satisfy tax obligations arising from the vesting of 173,153 performance rights.

Ramelius Resources Limited (ASX: RMS)

The Ramelius share price has fallen 7.5% to $1.80. Investors have been selling Ramelius and other gold mining shares on Friday after the spot gold price fell almost 2% during overnight trade. This was driven by the strengthening of the US dollar. The S&P/ASX All Ords Gold index is down a disappointing 3.5% at the time of writing.

Reject Shop Ltd (ASX: TRS)

The Reject Shop share price has sunk 10% to $5.70. This discount retailer’s shares have been sold off today following the release of a disappointing trading update. Reject Shop has been battling weak sales and higher costs because of challenges in the international supply chain. As a result, it expects to post full year earnings before interest and tax (EBIT) of $8 million to $10 million. This compares to its first half EBIT of $23.3 million.

Sezzle Inc (ASX: SZL)

The Sezzle share price is down 5% to $8.75. This decline appears to be due to a combination of weakness in the tech sector and profit taking after an exceptionally strong gain on Thursday. The buy now pay later provider’s shares rocketed higher yesterday after announcing a deal with US retail giant Target.

The post Why Appen, Ramelius, Reject Shop, & Sezzle shares are sinking appeared first on The Motley Fool Australia.

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At the time of writing, the Sezzle Inc (ASX: SZL) share price has gone up 18% this week after the buy now, pay later business revealed an exciting update to the market.

Sezzle partnership

Sezzle informed the market that it has concluded its proof of concept (POC) with Target Corporation (NYSE: TGT), one of the largest omnichannel retailers in North America.

The buy now, pay later business has entered into a three-year agreement with the retailer.

Under the agreement, Sezzle’s product will be used in-store and across Target’s digital platforms, providing guests with access to interest-free payment plans for purchases made at Target.

What else has happened recently?

Near the end of May, Sezzle revealed that it had partnered with Lamps Plus, the US’ largest specialty lighting retailer. As part of the initial roll out, Lamps Plus is now offering Sezzle exclusively as a flexible payment option to its online customers at its website who can choose to pay for products in four interest-free instalments over six weeks with no impact to their credit score. Lamps Plus has a “thriving” e-commerce business with 36 stores in the west of the country.

The company also announced its intention to file the registration statement for an initial public offering (IPO) in the US.

First quarter of 2021

At the end of April 2021, it released the results of its first quarter numbers for the three months to 31 March 2021.

In that quarter, underlying merchant sales (UMS) increased 214.1% year on year to US$375.1 million. That was an increased of 16.9% quarter on quarter.

Sezzle income, as a percentage of UMS, remained steady at 5.9% compared to the prior corresponding period.

Almost 400,000 active consumers were added during the quarter, bringing the total to over 2.6 million active consumers – up 126.6% year on year. It also added 7,300 active merchants, the largest quarterly increase in the company’s history.

Sezzle’s consumer profile continued to improve as active consumer repeat usage grew to 90.7%. That was the 27^th consecutive month of improvement.

The company is expecting improved margins as more of its payment volumes move towards the automated clearing house as a payment method.

Broker opinion on the Sezzle share price

Broker Ord Minnett was impressed by Sezzle’s quarterly numbers, particularly the UMS, average usage of consumers and income.

Ord Minnett has set a price target of $11.90 on the buy now, pay later business. That suggests a potential rise of more than 30% over the next 12 months.

The post Why the Sezzle share price has rocketed 18% this week appeared first on The Motley Fool Australia.

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Rio Tinto Limited (ASX: RIO) announced the appointment of Western Australia’s former Aboriginal affairs minister, Ben Wyatt, to its board today.

At the time of writing, the Rio Tinto share price is trading at $124.16, 2.24% lower than yesterday’s close.

Let’s take a look at Rio Tinto’s appointment of Wyatt and his past interactions with the company.

A shared history

In his role as Aboriginal affairs minister, Wyatt slammed Rio Tinto for its destruction of 46,000 year old rock shelters in the Juukan Gorge last May.

The mining giant legally blew up the culturally and historically significant site despite protests from Indigenous groups and archaeologists.

As a result, two of Rio Tinto’s senior executives and its CEO left the company in September, albeit with healthy payouts. Rio Tinto’s former chair Simon Thompson later left his position as well, as a result of the backlash.

In September 2020, Wyatt was quoted by ABC News as saying:

What has happened with Rio Tinto, they have a great absence in the Pilbara now, they don’t have an understanding of the community in which they generate the vast majority of their earnings.

One of the greatest risks to their operation is the fact that they don’t appear to have a significant presence as a company. I don’t mean the local executives and the local team here, but as a board.

Rio Tinto’s new board member

Wyatt will join the Rio Tinto board as a non-executive director in September this year. He has held government roles as Western Australia’s treasurer, minister for Aboriginal affairs, minister for finance, and minister for energy.

Rio Tinto’s announcement of his appointment quoted Wyatt as saying:

I have deep respect for the resources sector in Australia and have long been impressed with the professionalism and commitment demonstrated by Rio Tinto.

I was deeply saddened and disappointed by the events at Juukan Gorge but I am convinced that Rio Tinto is committed to changing its approach to cultural heritage issues and restoring its reputation, particularly in Australia and Western Australia.

Commentary from management

Commenting on Wyatt’s appointment, Rio Tinto chair Simon Thompson said:

With family links to the Pilbara and an impressive track record in public life, Ben’s knowledge of public policy, finance, international trade and Indigenous affairs will significantly add to the depth of knowledge on the board at a time when we are seeking to strengthen relationships with key stakeholders in Australia and around the world.

Rio Tinto share price snapshot

The Rio Tinto share price has performed well on the ASX lately. Currently, the Rio Tinto share price is 7% higher than it was at the start of 2021. It’s also gained 25% since this time last year.

The mining giant has a market capitalisation of around $47 billion, with approximately 1.6 billion shares outstanding.

The post What’s with the Rio Tinto (ASX:RIO) share price today? appeared first on The Motley Fool Australia.

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ASX dividend shares are in the spotlight in today’s ultra-low interest rate environment.

On Tuesday, the Reserve Bank of Australia (RBA) stuck to its guns, keeping the official cash rate at a historic, rock bottom 0.10%. That means we’re unlikely to see higher returns from any cash held in savings deposits for some time yet.

Last I checked, even term deposits weren’t paying much over 1%. Meaning once you factor in inflation, your $100 in the bank will actually buy you less next year than it will today.

It also means investors seeking regular income – and willing to take more risk with their money than sticking it in a bank – increasingly look to ASX dividend shares. They hope that these will not only return inflation-beating yields but will deliver some capital gains as well.

A few words of caution for yield investors

Before moving on to the 10 top-yielding ASX dividend shares, a few words of caution.

Not all high-yielding shares are created equal.

Sometimes a share will have a high trailing dividend yield because its share price has fallen dramatically. If that’s the case you’d be wise to investigate why its shares have been falling and what the consensus outlook is moving forward.

Remember, there’s no guarantee a company will continue its current dividend payout ratio. Especially if its share price has been under pressure. Best to focus on expected future yield than past yields.

Also, any money that ASX dividend shares return to shareholders is money the companies won’t be able to reinvest into their business.

With that said, let’s move on to…

The 10 top-yielding ASX dividend shares

Taking out the number 1 position (data from Iress as reported by The Australian) among the 50 largest ASX companies is Fortescue Metals Group Limited (ASX: FMG). Fortescue pays a 10.8% dividend yield, 100% franked. The mining giant has a market cap of $72.2 billion. The Fortescue share price is up 57% over the past 12 months.

Coming in at number 2 is AGL Energy Limited (ASX: AGL). AGL pays a 10.2% dividend yield, unfranked. The energy provider has a market cap of $5.4 billion. The AGL share price is down 50% over the past 12 months.

The third best yielding company making the list is Aurizon Holdings Ltd (ASX: AZJ).  Aurizon pays a dividend yield of 7.8%, 70% franked. The rail freight operator has a market cap of $6.8 billion. The Aurizon share price is down 24% over the past 12 months.

Number 4 is Origin Energy Ltd (ASX: ORG). Origin pays a dividend yield of 5.6%, unfranked. The energy provider has a market cap of $7.9 billion. The Origin share price is down 25% over the past 12 months.

The fifth best yielding company in the top 50 ASX shares is APA Group (ASX: APA). APA Group pays a 5.5% dividend yield, unfranked. The energy infrastructure company has a market cap of $11 billion. The APA Group share price is down 20% over the past 12 months.

Top-yielding ASX dividend share number 6 is DEXUS Property Group (ASX: DXS). Dexus pays a dividend yield of 5%, unfranked. The commercial property owner and manager has a market cap of $11.2 billion. The Dexus share price is up 10% over the past 12 months.

At number 7 we have Rio Tinto Limited (ASX: RIO). Rio pays a dividend yield of 4.9%, fully franked. The iron ore miner has a market cap of $47.2 billion. Over the past 12 months, the Rio Tinto share price is up 25%.

Number 8 is GPT Group (ASX: GPT). GPT pays a dividend yield of 4.9%, unfranked. The diversified property group has a market cap of $9.1 billion. The GPT Group share price has gained 12% over the past 12 months.

Stockland Corporation Ltd (ASX: SGP) takes the number 9 position. Stockland pays a 4.7% dividend yield, unfranked. The property owner and manager has a market cap of $11.5 billion. Stockland’s share price is up 23% over the past 12 months.

Rounding out the list of the 10 top-yielding ASX dividend shares is Australia and New Zealand Banking GrpLtd (ASX: ANZ). ANZ pays a dividend yield of 4.6%, fully franked. The big 4 bank has a market cap of $81.9 billion. Over the past 12 months, the ANZ share price has gained 51%.

There you have it.

10 high yielding ASX dividend shares amongst the biggest 50 companies on the ASX. Six have seen their share price rise over the past full year while four have suffered share price falls.

Why the Motley Fool’s Scott Phillips leans towards APA Group

Earlier today I reached out to Scott Phillips, the Motley Fool’s CIO, to get his take on the list of top 10 ASX dividend shares.

He told me he’d steer clear of the retail energy shares. He also wouldn’t buy Rio or Fortescue at their current prices.

As for the commercial property shares listed above, Scott said:

I’m keeping a watching brief on commercial property. With a lot changing in the world of retail, and many people now working from home, I’m not sure it’s possible to have a good handle on future occupancy rates. If I was looking at REITs, even though I don’t expect them to be market-beating, I’d go for bulky goods retail and/or warehousing.

Scott believes that Aurizon looks fascinating, saying the share “looks cheap, and its yield looks good”. What investors need to be aware of, he added, is the question of “how long it can keep its coal cars full, and scale benefits flowing”. At the moment he prefers to wait on the sidelines with this share.

Out of our top 10 list above, Scott picked APA Group as “a good option for a diversified income portfolio”.

He said:

APA has a quality business of near-monopoly gas pipelines, and I think the demand is likely to be robust in the medium-long term.

I don’t expect it to be market-beating from a total return perspective. But I think it’s a useful part of a diversified income portfolio, especially as many income seekers are overweight banks and REITs.

Happy ASX dividend share investing!

The post The 10 ASX dividend shares delivering the highest yields appeared first on The Motley Fool Australia.

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The Fatfish Group Ltd (ASX: FFG) share price won’t be going anywhere on Friday afternoon after the company requested a trading halt.

Why Fatfish shares paused trading today

The Fatfish share price jumped 4% this morning before entering into a trading halt just prior to lunchtime. This request was made on the basis of an upcoming buy now, pay later (BNPL) acquisition announcement.

Shares in the technology venture building company will remain halted until either Tuesday 8 June or when the relevant announcement is released to the market.

Fatfish ramps up Southeast Asian BNPL exposure

In recent months, Fatfish has been ramping up its strategic investments in the BNPL space with a focus on the Southeast Asian market.

On 18 February, the company’s subsidiary Smartfunding successfully launched its corporate BNPL service in Southeast Asia. Fatfish has been progressively increasing its stake in Smartfunding and currently holds a 78.7% stake in the company.

On 26 February, Fatfish entered into a strategic partnership with KryptoPOS to rollout its BNPL services throughout Asia. The company believes that this partnership also has the potential to boost the market reach of its Smartfunding BNPL services.

With Smartfunding’s focus on a corporate BNPL product, Fatfish acquired a strategic 85% stake in Forever Pay, which is a licensed corporate entity with a money lending license from the Malaysian government. Fatfish intends to develop and launch a retail BNPL product and leverage any potential synergies with Smartfunding.

The Fatfish share price in 2021

The Fatfish share price was a beneficiary of the BNPL hype in February, when the company’s shares went gangbusters from 3.5 cents to as high as 43 cents.

In response to an ASX price and volume query, the company said that “some ASX listed companies in the BNPL space have experienced recent strong demand and increases in prices, especially company(s) involved in the Asian geographical market.”

As the hype began to cool down for BNPL shares, the Fatfish share price has slowly drifted lower, first consolidating around the 10 cent level around March before sliding lower to the 7 cent level in May. As of today’s pause in trade, Fatfish shares are sitting at 7.6 cents.

The post Fatfish (ASX:FFG) shares in trading halt pending BNPL acquisition appeared first on The Motley Fool Australia.

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The Australian Bureau of Statistics (ABS) has released its official retail trade figures for April, highlighting a 1.1% increase compared to March, on a seasonally adjusted basis.

The results were unchanged from its preliminary retail trade data released on 21 April. Included in the official release were the industries driving the uptick in retail turnover.

Broadly speaking, ASX retail shares managed to rally strongly throughout March and April, in many cases hitting record all-time highs. However, by mid-April and May, many were struggling to hold onto gains and edged lower.

Here’s a snapshot of which industries and subgroups lifted retail trade in April, and how some of the ASX retail shares are faring.

Latest retail trade results

Food retailing

Food retailing increased 1.4% in seasonally adjusted terms. By industry subgroup, supermarket and grocery stores, liquor retailing and other specialised food retailing rose a 1.2%, 3.0% and 1.1% respectively.

Things were going well for the Woolworths Group Ltd (ASX: WOW) share price until its third-quarter update on 29 April. Its shares tanked more than 5% between 29 April and 3 May from $41 to $39. The Woolworths share price has since made a bullish recovery and, at $43.33 today, is within cooee of its February record all-time highs of $43.85.

The third-quarter update highlighted a 0.7% fall in Australian Food sales against the prior corresponding period. However, the company registered a strong performance across its Big W, Endeavour Drinks and Hotel businesses.

Household goods retailing

Household goods increased 1.5% in seasonally adjusted terms. Key subgroup drivers include a 3.0% increase in electronic goods and 1.7% increase in furniture, floor coverings, houseware and textile goods retailing.

Despite the improvement in household goods, some previous high-fliers in this group — including JB Hi-Fi Ltd (ASX: JBH), Kogan.com Ltd (ASX: KGN) and Harvey Norman Holdings Ltd (ASX: HVN) — experienced sharp selloffs in April. This is possibly driven by a period of tough comparables against supercharged COVID-19 driven earnings in FY20.

This was especially the case for Kogan, where its shares have tanked almost 50% year-to-date. The company’s disappointing trading update in May flagged inventory challenges, likely driven by the anticipation that heightened sales would continue.

Cafes, restaurants and takeaway food services

Cafes, restaurants and takeaway food services improved 2.3% in April, driven by a 4.4% lift in takeaway food services, while cafe, restaurants and catering services edged 0.6% higher.

According to ABS data, turnover for cafe, restaurants and takeaway food services has toppled pre-COVID highs of about A$3,935 million in February 2020, after the latest figures came in a A$4,125 million.

This aligns with the recent bullish share price action of Dominos Pizza Enterprises Ltd (ASX: DMP). Its shares are up 20% since April and set a new all-time record high on Thursday of $117.96.

The post Which ASX retail shares are the latest trade winners? appeared first on The Motley Fool Australia.

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