The Ainsworth Game Technology Limited (ASX: AGI) share price backtracked today after the company provided a business update.

At market close, the gaming technology company’s shares finished the day at 88 cents, down 2.78%.

What was announced?

Investors sold off their positions in Ainsworth today despite the company’s strong forecasted preliminary results and new partnership agreement.

According to its release, Ainsworth advised it expects to report a profit before tax of $1 million for H2 FY21. Continued improvements in market conditions following the impact of COVID-19 led the group to achieve better revenue and profitability.

Group underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for FY21 is projected to come in at $19 million. Most of the earnings were attributed to the robust second-half performance which recorded $13.2 million. This represents an increase of 128% on the $5.8 million achieved in the first-half.

Ainsworth noted, however, that both forecasted metrics excludes any currency movements and one-off items such as the $3.3 million sale of land at its Nevada facility.

In addition to the update, the company announced an exclusive agreement with internet-based interactive gaming services, GAN Limited (NASDAQ: GAN).

The 5-year partnership will see Ainsworth provide GAN with exclusive use of online real money games within the United States. Rights of up to 79 unique slot titles including QuickSpin brand of wheel games are included in the deal.

Furthermore, Ainsworth will supply a variety of new game content on a regular basis to keep customers enthused.

Online operations will run in New Jersey and are being planned for Michigan and Pennsylvania.

The contract will generate a minimum guaranteed amount of US$30 million and will come into effect 1 July 2021. The funds will be received with US$10 million in cash in H1 FY22, and the remaining US$20 million paid over the life of the contract.

About the Ainsworth share price

Year-to-date, Ainsworth shares have gained traction to almost double in value, up over 80%, reflecting positive investor sentiment. The company’s share price reached a 52-week high of $1.175 before profit taking swooped in.

On valuation grounds, Ainsworth commands a market capitalisation of around $294 million, with approximately 336 million shares outstanding.

More reading

• Here are the shares that Warren Buffett has been buying (and selling) lately
• Here are the US shares ASX investors were buying last week
• Learning to love share price falls
• 2 ASX 200 shares to buy for growth
• The Aristocrat Leisure (ASX:ALL) share price is up 4% and could keep climbing

Motley Fool contributor Aaron Teboneras 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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Unfortunately, Warren Buffett – chair and CEO of Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B) – doesn’t often talk about which shares Berkshire is buying and selling, at least until a few months after he has done so. But fortunately, Berkshire is required to tell us what shares Buffett has been buying and selling. Well, every 3 months, that is. In the United States, companies have to report what’s known as a 10F filing every quarter. This filing contains all of the stocks and assets a company holds. That means we can use them to see what changes Buffett has been making to Berkshire’s sprawling portfolio.

And that brings us to today. Yesterday, Berkshire filed its 10F report for the quarter ending 31 March 2021. Although that’s a while ago now (and an eternity in the investing world), it’s still a great opportunity to get a look inside Buffett’s head and see what he’s been up to.

So let’s dig in.

Buffett’s buys

So according to reporting in the Australian Financial Review (AFR), Berkshire did make some substantial moves over the March quarter. These were mostly selling though. His largest sells were in bank shares, particularly Wells Fargo & Co (NYSE: WFC), which the AFR notes Buffett has held for more than three decades now. At the height of Berkshire’s Wells Fargo investment, the company owned more than 10% of the US$198 billion bank. But as of 31 march, Berkshire only owned ~675,000 shares, worth roughly US$32.34 million on the most recent pricing.

Berkshire also offloaded shares of another US bank in U.S. Bancorp (NYSE: USB), as well as a smaller, but total, stake in Synchrony Financial (NYSE: SYF).

Another sector that Berkshire and Buffett seem less enamoured with than in the past is oil. In the quarter ending 31 December 2020, Berkshire has a US$4.1 billion position in the oil giant Chevron Corporation (NYSE: CVX). But Berkshire has been selling off this position as well. As of 31 March, Berkshire had just US$2.5 billion worth of Chevron stock left. Perhaps the recent bull run in oil prices has served its purpose for Buffett.

Other shares that Buffett and Berkshire trimmed over the quarter include AbbVie Inc (NYSE: ABBV), Bristol-Myers Squibb Co (NYSE: BMY), Merck & Co., Inc. (NYSE: MRK) and General Motors Company (NYSE: GM).

In their place, Berkshire has added to its stake in supermarket chain Kroger Co (NYSE: KR), almost doubling its investment over the quarter to 51 million shares (worth US$1.91 billion on today’s prices). It has also topped up on communications giant Verizon Communications Inc. (NYSE: VZ), and services company Marsh & McLennan Companies, Inc. (NYSE: MMC). It also initiated a position in insurance broker Aon PLC (NYSE: AON).

Berkshire’s stakes in its largest holdings in Apple Inc (NASDAQ: AAPL) and Bank of America Corp (NYSE: BAC) remain unchanged for the quarter.

More reading

• Here are the US shares ASX investors were buying last week
• Has COVID-19 killed the ASX WAAAX shares?
• Here are the US shares ASX investors were buying last week
• Nasdaq slump: will ASX tech shares face selling pressure today?
• ASX tech shares are in a world of pain. There might be more to come…

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Bristol Myers Squibb. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2023 $130 calls on Apple, short June 2021 $240 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). 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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Most weeks, Commonwealth Bank of Australia (ASX: CBA)’s CommSec share trading platform tells us the US shares that its Aussie customers were buying the previous week.

Since CommSec is one of the most popular brokers in Australia, this data is a useful insight into the US shares that ASX investors are finding tempting at the moment.

My Fool colleague James Mickleboro has already covered some of the ASX’s most popular shares today. So here are the top 10 US shares that CommSec customers were buying and selling last week. This week’s data covers 10-13 May.

GameStop (and Tesla) still an ASX heart stealer

1. Tesla Inc (NASDAQ: TSLA) – representing 7.3% of total trades with a 78%/22% buy-to-sell ratio.
2. GameStop Corp. (NYSE: GME) – representing 3% of total trades with a 94%/6% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.5% of total trades with a 69%/31% buy-to-sell ratio.
4. Palantir Technologies Inc (NYSE: PLTR) – representing 2.1% of total trades with an 82%/18% buy-to-sell ratio.
5. Nio Inc – ADR (NYSE: NIO) – representing 1.8% of total trades with a 58%/42% buy-to-sell ratio.
6. AMC Entertainment Holdings Inc (NYSE: AMC)
7. Microsoft Corporation (NASDAQ: MSFT)
8. Amazon.com Inc. (NASDAQ: AMZN)
9. Alibaba Group Holding Ltd (NYSE: BABA)
10. Alphabet Inc Class C (NASDAQ: GOOG)

What can we learn from these trades?

Well, this week’s list looks remarkably similar to last weeks’ list. The same top 5 shares, with the exception of Nio. Similar buy/sell ratios for the top 5. And some similar themes.

One thing that stands out this week is the ongoing obsession ASX investors seem to have with GameStop Corp. GameStop was infamously the hottest stock in the world back in January. That was when a Reddit-fuelled stock squeeze was orchestrated by retail investors, forcing GameStop shares up 1,770% between 1 January and 27 January. Today, GameStop shares are down almost 50% from those highs. Saying that, this stock has continued to provide the odd ‘pop’ since then. Case in point, the stock is currently up 26% since last Monday. The 94%-6% buy-to-sell ratio is startlingly bullish too. Clearly, there are many ASX investors who are still looking to get lucky with this one.

Tesla remains at the top of the pile too, with more than double the total trades of the second-place GameStop last week. That’s despite the Elon Musk-headed electric vehicle and better manufacturer losing almost 20% of its value over the past month.

Nio’s return to the top 5 is also interesting. Nio, a Chinese electric vehicle maker and rival to Tesla, is now down around 37% year to date. But given this company went from US$3 a share in March last year to a high of US$67 by January, there are clearly a few investors looking for some more magic out of this one. 

Meanwhile, Aussie demand for the blue chip US tech stocks continues to be solid. Apple still holds its bronze medal in this list. And Amazon, Microsoft and Google-parent Alphabet are still bobbing along in the top 10.

More reading

• Here are the shares that Warren Buffett has been buying (and selling) lately
• Learning to love share price falls
• If Bitcoin investing isn’t risky enough for you, try this
• Australians are opening their wallets, says CBA report
• Exec jailed for ASX share market manipulation

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. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, NIO Inc., and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Palantir Technologies Inc and recommends the following options: long January 2022 $1920 calls on Amazon, short March 2023 $130 calls on Apple, short January 2022 $1940 calls on Amazon, and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. 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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Last week, I wrote about the volatility that has hit the ASX over the past few months (and the past few days). On the surface, that sounds strange, given the ASX hit an all-time closing high just last Tuesday.

But, like the proverbial duck sitting serenely on the surface of the water, but paddling madly underneath, the headlines and totals hide quite a lot of activity.

Banks and miners have been on the rise, while ‘growth’ companies have taken a hit. Some are down a little. Others are down a lot.

And it’s important to remember such moves, while unwelcome, are far more common than most people realise.

Doesn’t necessarily make them any more fun, though. Judging by the feedback I received in response to what I wrote, it sounds like my article struck a chord.

“I needed to read that” was typical of the responses.

It’s easy to feel confident when things are going well. Less so when share prices are falling.

Doubt creeps in.

Uncertainty.

Fear.

The pain of loss.

Life wasn’t meant to be easy, apparently. And neither is investing, unfortunately.

I feel your pain.

But today I wanted to try to take you one step further.

See, if you’re going to be buying shares – directly, indirectly via a dividend reinvestment plan perhaps, or automatically via Super, it might just pay to cast this volatility in a different light.

And I’m going to go to the Oracle, himself, Warren Buffett, to help me make the case.

Tell ’em what you said, Warren:

“The logic is simple: If you are going to be a net buyer of stocks in the future, either directly with your own money or indirectly (through your ownership of a company that is repurchasing shares), you are hurt when stocks rise.”

“You benefit when stocks swoon.”

“Emotions, however, too often complicate the matter: Most people, including those who will be net buyers in the future, take comfort in seeing stock prices advance.”

“These shareholders resemble a commuter who rejoices after the price of gas increases, simply because his tank contains a day’s supply.”

Now, Buffett isn’t criticising us (too much) for enjoying the ‘green’ days, when our portfolios rise.

But, as he says, it’s important to remember that petrol price analogy. The petrol in your tank might be worth more today if the price rises 10c a litre, but we know that’s a false economy.

You should think of shares the same way.

I’ll use a personal example.

I’m a bit partial to Coke Zero. 

I’ve been known to run out of cans and have to pay full price in the past. But when I’m appropriately organised and aware – and when it’s on special – I grab a couple of boxes at a time.

Am I unhappy because the ones I already have in the fridge have gone down in price?

Not a chance.

I might wish I’d bought those other ones more cheaply… but I’m not looking a gift horse in the mouth!

There are more than enough share price examples I could give you. Amazon going from $100 to $9 per share is the archetype.

Would shareholders have been sad? Yep.

Angry? Maybe.

Yelling at their adviser? Probably.

Upset at losing money? Sure.

But if they’d focused on the business, instead?

If they’d seen growing sales, more customers, more categories, more countries? If they could have ignored the pain, and realised they were being offered shares “on special”, rather than a business that was permanently impaired?

Let’s just say they wouldn’t have too many financial worries with the Amazon share price now at $3,200.

(I own shares for the record. And no, I didn’t buy at $9, unfortunately!)

See, that’s the power of knowledge. And context. And a business focus. And long-term thinking.

No, not every company that loses 90% will subsequently go up 350 times in value.

In fact, very, very few will.

But plenty of companies do go higher after having fallen. Sometimes meaningfully so.

And that’s the important part.

If a company’s shares go from $10 to $20 over the next 5 years, it’d be nice if that happened slowly and steadily, like riding a travelator.

They (almost) never do, of course.

Maybe it goes to $12, then to $8.

Then to $15, then to $5.

Then, eventually to $20.

The journey is no fun, for holders. But if you’re a buyer, it can provide plenty of opportunities to buy more. Which is the key.

I don’t expect you to love volatility, necessarily.

I don’t expect you to love your portfolio losing value.

I don’t expect you to love the market telling you – implicitly or explicitly – that you’re wrong.

But I do want you to realise it’s going to happen. Maybe a lot.

I do want you to accept it.

I do want you to make your peace with it. And yes, I do want you to learn to see those times as buying opportunities.

Now, I’m not saying ‘Buy everything that goes down’. That’d be silly.

Enron went down. Myer went down. Dick Smith went down. So did Kodak.

And I’m not saying ‘Don’t buy when prices are up’. Amazon went up. And up. And up. Waiting for a cheaper price can also be expensive.

I’m just saying ‘Don’t let the market tell you what to think’. And, more importantly, I’m saying that if you like a company at $20 per share, and the shares fall to $10 unless something material has changed, you should like it a whole lot more!

The best investors let volatility be their friend.  They use it as an opportunity, even though the falls can still be painful.

I don’t expect you to be good at that, straight away. Or even to like it. 

But if you can develop the ability to at least accept it – and hopefully act on it, especially when it comes to quality companies – your portfolio might just be meaningfully better, as a result.

More reading

• Amazon could skyrocket 83% by 2023, analyst says
• 3 explosive shares that defy PE ratios
• Has COVID-19 killed the ASX WAAAX shares?
• Here are the US shares ASX investors were buying last week
• Nasdaq slump: will ASX tech shares face selling pressure today?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Scott Phillips owns shares of Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Some of the S&P/ASX 200 Index (ASX: XJO) shares available to investors are producing a lot of profit growth.

Businesses that produce profit growth give themselves a better chance of producing capital growth over time for shareholders.

The below two businesses have been doing very well expanding globally and could continue to do well:

Premier Investments Limited (ASX: PMV)

This is one of the leading retail businesses on the ASX. It operates a group of retail, consumer products and wholesale businesses.

It owns a number of retail brands including Smiggle, Peter Alexander, Just Jeans, Jay Jays, Portmans, Jacqui E and Dotti. Premier Investments also owns just over a quarter of Breville Group Ltd (ASX: BRG). Breville’s brands include Breville, Kambrook and Sage by Heston Blumenthal.  Breville also distributes Ronson and Philips products in Australia.

The business has been seeing an excellent performance by its online operations which have really driven the profit margins and bottom line higher.

Premier’s global retail sales went up 7.2% to $784.6 million, but online sales increased 61.3% to $156.7 million. Global like for like sales grew 18.2%. The retail gross margin improved by 286 basis points and the earnings before interest and tax (EBIT) margin grew by 1,308 basis points. This helped EBIT surge by 88.5% to $237.8 million. Statutory profit rose 88.9% to $188.2 million.

Management believe its apparel brands are well positioned to deliver future growth. It continues to invest in its online capabilities to maximise its opportunities with digital.

The ASX 200 company is indicating that there is going to be further growth in the second half of FY21. Global like for like sales were up 32.1% in the first seven weeks of the second half, with the gross margin up 379 basis points.

According to Commsec, the Premier Investments share price is valued at 20x FY22’s estimated earnings.

ResMed Inc (ASX: RMD)

ResMed is one of the leading ASX healthcare shares.

Before COVID-19, a key focus of the business was to help people sleep better. Its products and services are designed to help with sleep apnea. Its mission is to provide global leadership in sleep medicine and non-invasive ventilation based on technology advancing the diagnosis, treatment, and management of sleep-disordered breathing.

One of the ways that ResMed can help sleep apnea is with continuous positive airway pressure (CPAP). It’s a device that delivers a constant flow of air via a mask while you sleep, preventing your airway from becoming blocked and enabling you to sleep peacefully, according to ResMed.

The ASX 200 share has also been helping with COVID-19 thanks to its machines that help people breathe.

For the nine months to 31 March 2021, ResMed has seen underlying net income increase by 17% to US$582.2 million.

Its software as a service (SaaS) operations are giving a helping hand with this growth. The SaaS revenue comes with a higher profit margin than the non-SaaS parts of the business. The quarter ending 31 March 2021 saw SaaS revenue increase 5% due to the continued growth of resupply service offerings and stabilising patient flow in out-of-hospital care settings.

According to CommSec, the ResMed share price is valued at 37x FY21’s estimated earnings.

More reading

• Here’s why Centuria Capital (ASX:CNI) shares are falling 6% today
• ASX 200 up 0.6%: James Hardie Q4 update, St Barbara sinks, Nuix jumps
• Latest 2 ASX shares to be upgraded by brokers to “buy” today
• South32 (ASX:S32) increases capital returns by $258m and sets climate goals
• Why the Commonwealth Bank (ASX:CBA) share price is in the spotlight today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended ResMed Inc. 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 Aristocrat Leisure Limited (ASX: ALL) share price has been a strong performer on Tuesday.

In late afternoon trade, the gaming technology company’s shares are up a further 4% to $40.47.

This means the Aristocrat Leisure share price is now up 29% since the start of the year.

Why is the Aristocrat Leisure share price charging higher today?

Investors have been buying the company’s shares this week following the release of a strong half year update on Monday.

That update reveals that the Aristocrat Gaming business has experienced exceptional product performance and customer engagement during the first half of FY 2021.

As a result of this and stronger than expected consumer sentiment and economic conditions in the United States and ANZ region, the segment’s profits have been growing quicker than forecast.

Another positive was that the Aristocrat Digital business is performing strongly as well. Management advised that it delivered above industry-average growth in bookings during the first half. This is translating into revenue and profit growth comparable to the prior corresponding period.

In light of this, for the six months ended 31 March, Aristocrat Leisure expects to report a normalised net profit after tax and before amortisation of acquired intangibles (NPATA) of $412 million. This will be a 12% increase on the prior corresponding period.

As you might have guessed from the Aristocrat Leisure share price reaction, this is far better than the market was expecting.

Positive broker response

Also giving the Aristocrat Leisure share price a boost has been the response to this update by brokers.

One of the most bullish brokers is Citi. This morning the broker retained its buy rating and lifted its price target to $44.50.

Based on the current Aristocrat Leisure share price, this implies potential upside of 10% over the next 12 months.

What did the broker say?

Citi notes that the company’s recovery is happening much quicker than anticipated.

It said: “Aristocrat is recovering much faster than market expectations, fuelled by a reopen and stimulated US economy. We pull forward the recovery, driving a 12% NPATA upgrade in FY21e (+21% in 1H21e and +5% in 2H21e) but only small revisions in FY22e (-1%) and FY23e (+1%). Note Citi FY22e and FY23e forecasts were ~6-7% above pre-trading update consensus levels. Little detail was provided at the trading update on the drivers of better-than-expected earnings, however we expect: 1) fee per day recovery in Gaming Ops; 2) Digital margin expansion; and 3) provision releases were the key elements of the better-than-expected 1H21e result. We maintain our Buy rating with a new $44.50 target price.”

More reading

• Up 8% this week, brokers are bullish about the Aristocrat (ASX:ALL) share price
• Why Aristocrat Leisure, Creso Pharma, Nuix, & Resolute are charging higher
• Why AnteoTech, Aristocrat Leisure, BWX, & Xero shares are storming higher
• ASX 200 up 0.45%: Carsales sinks 10%, Aristocrat Leisure jumps
• Aristocrat Leisure (ASX:ALL) share price jumps 9% on profit update

Motley Fool contributor James Mickleboro 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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S&P/ASX 200 Index (ASX: XJO) supermarket giants Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) have signed the new Australia, New Zealand and Pacific Islands (ANZPAC) plastic pact.

The pact was launched yesterday and comprises a series of “ambitious” targets for signatories to achieve by 2025.

A total of 58 other companies, non-government organisations, and governments are also involved in the pact.

Let’s take a closer look at the pact and what it might mean for the ASX 200 supermarket chains.

Reducing plastic waste

The ANZPAC plastic pact is led by the Australian Packaging Covenant Organisation.

It includes four targets that signatories must reach by 2025. These are:

1. Eliminate unnecessary and problematic plastic packaging through redesign, innovation and alternative (reuse) delivery models

2. 100% of plastic packaging to be reusable, recyclable or compostable packaging by 2025.

3. Increase plastic packaging collected and effectively recycled by 25% for each geography within the ANZPAC region.

4. Average of 25% recycled content in plastic packaging across the region.

According to ANZPAC, if the region continues to amass the volume of plastic waste it is currently making, the amount of plastic in the ocean will quadruple by 2040.

It also states the pact represents members from the entire plastic supply chain. Founding members include brands, packaging manufactures, and retailers.

Coles has already committed to removing all single-use plastic from its stores by 1 July 2021.

Woolworths head of sustainability Adrian Cullen said the supermarket has removed thousands of tonnes of plastic from its stores.

Commentary from management

Members of both Coles’ and Woolworths’ upper management commented on the ASX 200 companies’ support of the pact.

Coles chief executive of commercial and express Greg Davis said:

As one of Australia’s largest retailers, Coles understands the importance of working collaboratively to find a more sustainable future for plastic packaging. We’ve just launched our new Together to Zero sustainability strategy and have an ambition to be Australia’s most sustainable supermarket, working with our suppliers, customers and other stakeholders towards zero waste. As a founding member of the ANZPAC Plastics Pact, we now have an opportunity to build and shape meaningful change on plastic packaging and move towards a circular plastic economy as a global community.

Woolworths head of sustainability Adrian Cullen said: 

We’re working towards a better tomorrow for our customers, communities and the planet, and reducing plastic waste is one of the important ways we can make a meaningful difference… The Plastics Pact is a first of its kind opportunity for the entire industry and every level of the supply chain to rally around this challenge and collaborate on solutions that reduce plastic waste for the benefit of the environment and generations to come.

More reading

• Top brokers name 3 ASX dividend shares to buy today
• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears
• 2 growing ASX dividend shares to buy
• Top brokers name 3 ASX shares to buy next week
• 2 ASX 200 blue chip shares rated as buys

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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 Carpentaria Resources Ltd (ASX: CAP) share price has seen better days, after falling deep in negative territory today. This follows the miner’s update on the Hawsons joint venture sale agreement.

At the time of writing, Carpentaria shares are fetching for 14.5 cents, down 9.3%. During early afternoon trade, the company’s share price hit an intraday low of 13.5 cents.

What did Carpentaria announce?

It’s been a difficult day for Carpentaria shareholders as its price has plummeted after reaching a multi-year high yesterday. A likely catalyst for the fall is due to more Carpentaria shares being put on the company’s registry.

In its announcement, Carpentaria advised that the joint venture sale agreement of the Hawsons Project has been completed. The outcome was approved by shareholders at the company’s Annual General Meeting (AGM) on 2 November 2020.

Under the agreement, Carpentaria will acquire a 24.149% interest in the Hawsons Iron Project. In return, the company will issue Pure Metals 90.8 million Carpentaria shares, with 45 million shares being allotted today. The remaining 45.8 million shares are expected in the coming days.

Carpentaria noted that the consideration of shares being issued is divided into 2 single tranches for legal reasons.

In addition, Carpentaria introduced institutional investors to Pure Metals, who have committed to buy all of the 90.8 million shares. To facilitate the move, Pure Metals appointed Shaw and Partners’ Wholesale Trading team to act on their behalf.

Carpentaria executive chair, Bryan Granzie commented:

This is a monumental day for Carpentaria as we can now move forward with renewed confidence and with widespread shareholder support.

We look forward to working with our many stakeholders as we turn our attention to the next major milestone, successfully completing the bankable feasibility study. The path forward is certainly looking brighter and with the analysis previously validated by pre-eminent resource analyst Wood McKenzie we can take a huge step towards developing our world-class iron ore project and taking our highest quality products to market in the best interest of our shareholders

Carpentaria share price snapshot

Over the past year, Carpentaria shares have travelled almost at a standstill until this month, rising 245% in 30 days. The incredible feat broke the company’s multi-year share price, hitting the 18-cent mark.

Carpentaria commands a market capitalisation of roughly $55 million, with more than 380 million shares on issue.

More reading

• Why the Carpentaria (ASX:CAP) share price is rocketing 54% today

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

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The Helix Resources Ltd (ASX: HLX) share price is one of the best performers on the ASX today. This follows the mineral exploration company’s update on its recent capital raising efforts.

At the time of writing, Helix shares are swapping hands for 4.4 cents, up 41.94%. It’s also worth noting that the company’s share price hit a multi-year high of 4.5 in early afternoon trade.

What did Helix announce?

Investors are fighting to get a hold of Helix shares after the company provided an update on its placement.

According to its release, Helix advised it has received binding commitments to raise $4.03 million by way of placement. Furthermore, approximately 149.4 million new ordinary shares will be issued at 2.7 cents each to participating institutional and sophisticated investors. This represents a discount of 13% on the last closing price of 3.1 cents per share.

The company will use its existing placement capacity to create new shares. Under listing rule 7.1, this allows up to 15% of its shares to be issued without shareholder approval.

Therefore, funds raised from the placement will be allocated towards the company’s aggressive drilling program at the Canbelego and CZ projects. High-grade copper mineralisation is also being targeted on its Cobar tenements in central New South Wales.

Settlement of the shares is expected to occur on 26 May 2021, with allotment the same day.

The lead manager of the placement, JP Equity Partners, will retain a 6% fee. In addition, the issue of 10 million options at a price of 5.4 cents with a 3-year expiry is also on offer.

Helix managing director, Mike Rosenstreich commented:

Our team is very excited to be able to lock-in an increased level of drilling. We now plan to have a drill rig on site virtually for the remainder of the year testing extensions to the known high-grade copper mineralisation as well as regional scale drilling to advance some of the targets reinforced by the recent airborne geophysical survey. The next six months will not be dull!

Helix share price review

Over the past 12 months, Helix shares have stormed close to 650% higher, reflecting positive investor sentiment. Year-to-date performance has also increased to post a gain of 340%.

Based on valuation grounds, Helix commands a market capitalisation of roughly $48 million, with over 1 billion shares on issue.

More reading

• Why the Helix (ASX:HLX) share price is rocketing 129%

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

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The Afterpay Ltd (ASX: APT) share price has waned recently from being one of the best ASX performers.

A dampening of optimism for growth shares caused by inflation worries has contributed to a 46% fall in the Afterpay share price since the company’s 52-week high of $160.05 on 10 February.

While analysts have been contending over price targets for the buy now, pay later (BNPL) provider, Afterpay’s venture capital arm, AP Ventures, has been searching for its next investment.

What is AP Ventures?

Like other companies, Afterpay has a segment of its business that is solely focused on deploying capital in growth opportunities. The investment vehicle came to life from CEO Anthony Eisen reaching out to former Investec Australia senior banker Hein Vogel.

Afterpay holds a 44% interest in AP Ventures and is often its biggest contributor to its investments. The venture fund’s website specifies that it “provides high growth, scalable companies that have proven revenue models with access to capital and, where appropriate, Afterpay’s experience, merchants and customers”.

For context, prior AP Ventures’ investments include LayAway. This offering allows customers to pay for holidays, flights, cruises etc, using a payment plan. LayAway was snapped up for $15 million, of which $6.5 million was from Afterpay.

Afterpay investment rumours outside the ASX

As reported by The Australian, AP Ventures is believed to be readying to purchase a services provider for small to medium-sized business merchants. The suspected figure is floating in the region of $45 million.

Currently, there isn’t much more light being shed on exactly which company it is in question. It wouldn’t be surprising to see a consolidation within the industry, given how popular the space has become in recent years.

There have been dozens of companies on the ASX alone aspiring to the likes of Afterpay and Zip Co Ltd (ASX: Z1P). However, if the environment was to become more challenging, the smaller fish may not survive the rougher waters.

At the time of writing, the Afterpay share price is trading at $86.19, representing a fall today of 0.3%.

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• Why Zip (ASX:Z1P) and this beaten down ASX tech share could be buys
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Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. 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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