The Macquarie Group Ltd (ASX: MQG) share price is in the spotlight as it unveiled an increase in both profit and dividends this morning.

The investment bank even hinted of a potential capital return down the track as it announced a 10% uplift in FY21 net profit to $3.02 billion and boosted its final dividend by 86.1% to $3.35 a share.

What will also please supporters is the fact that the gains accelerated in the second half of the financial year.

Key highlights in Macquarie’s profit results

Macquarie reported that profit from the six months to end of March 2021 made up two thirds of the full year’s NPAT. This means the second half profit was up 106% over 1HFY21 and 59% over the same time last year.

The group’s market facing business was the standout. The FY21 profit it makes from trading and investments jumped 39% over the previous year to $2.78 billion.

Its steadier annuity-type businesses lagged. The combined net profit contribution from this business dipped 4% year-on-year to $3.31 billion.

Is Macquarie undertaking a capital return this year?

The results could also spark speculation of a capital return as management said its holding excess capital to regulatory requirements.

The group held a cash surplus of $8.8 billion at 31 March 2021, up from $7.1 billion at the same time in 2020.

Hints of a capital return could be enough to offset any potential disappointment that Macquarie was vague about its outlook.

Uncertain outlook to debt confidence

The group really didn’t provide much clues on what lies, ahead apart from pointing out that this is a difficult environment to be making forecasts.

Some of the highlighted uncertainties include the speed of recovery from COVID-19, volatile market conditions, possible tax and regulatory changes and exchange rate fluctuations.

I wish they would tell us something we didn’t already know!

Erring on side of caution?

Shareholders will be hoping that this is Wikramanayake attempt to follow Macquarie’s tradition of under promising and over delivering.

“Macquarie remains well-positioned to deliver superior performance in the medium term,” said Macquarie’s CEO Shemara Wikramanayake.

“This is due to our deep expertise in major markets; strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions; an ongoing program to identify cost saving initiatives and efficiency; a strong and conservative balance sheet; and a proven risk management framework and culture.”

Macquarie is the last of the ASX banks to post its results during this bank reporting season. Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking GrpLtd (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) also reported profit results this month.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops, Nearmap plunges, Appen declines
• Australia’s trust in big banks up 19% in just 2 years: report
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs
• Blue chip ASX 200 shares breaking out into 52-week highs

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

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.

The post Macquarie (ASX:MQG) share price on watch after posting $3bn profit and 86% dividend increase appeared first on The Motley Fool Australia.

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The Macquarie Group Ltd (ASX: MQG) share price is in the spotlight as it unveiled an increase in both profit and dividends this morning.

The investment bank even hinted of a potential capital return down the track as it announced a 10% uplift in FY21 net profit to $3.02 billion and boosted its final dividend by 86.1% to $3.35 a share.

What will also please supporters is the fact that the gains accelerated in the second half of the financial year.

Key highlights in Macquarie’s profit results

Macquarie reported that profit from the six months to end of March 2021 made up two thirds of the full year’s NPAT. This means the second half profit was up 106% over 1HFY21 and 59% over the same time last year.

The group’s market facing business was the standout. The FY21 profit it makes from trading and investments jumped 39% over the previous year to $2.78 billion.

Its steadier annuity-type businesses lagged. The combined net profit contribution from this business dipped 4% year-on-year to $3.31 billion.

Is Macquarie undertaking a capital return this year?

The results could also spark speculation of a capital return as management said its holding excess capital to regulatory requirements.

The group held a cash surplus of $8.8 billion at 31 March 2021, up from $7.1 billion at the same time in 2020.

Hints of a capital return could be enough to offset any potential disappointment that Macquarie was vague about its outlook.

Uncertain outlook to debt confidence

The group really didn’t provide much clues on what lies, ahead apart from pointing out that this is a difficult environment to be making forecasts.

Some of the highlighted uncertainties include the speed of recovery from COVID-19, volatile market conditions, possible tax and regulatory changes and exchange rate fluctuations.

I wish they would tell us something we didn’t already know!

Erring on side of caution?

Shareholders will be hoping that this is Wikramanayake attempt to follow Macquarie’s tradition of under promising and over delivering.

“Macquarie remains well-positioned to deliver superior performance in the medium term,” said Macquarie’s CEO Shemara Wikramanayake.

“This is due to our deep expertise in major markets; strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions; an ongoing program to identify cost saving initiatives and efficiency; a strong and conservative balance sheet; and a proven risk management framework and culture.”

Macquarie is the last of the ASX banks to post its results during this bank reporting season. Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking GrpLtd (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) also reported profit results this month.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops, Nearmap plunges, Appen declines
• Australia’s trust in big banks up 19% in just 2 years: report
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs
• Blue chip ASX 200 shares breaking out into 52-week highs

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

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.

The post Macquarie (ASX:MQG) share price on watch after posting $3bn profit and 86% dividend increase appeared first on The Motley Fool Australia.

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The share price of call recording software developer Dubber Corp Ltd (ASX: DUB) has been on an absolute tear recently. Since the beginning of April, shares in the junior tech company have soared over 50%, from $1.77 to $2.67 as at the time of writing – and that’s despite an almost 10% slump on Thursday.

So, what has got the share price skyrocketing?

Company background

First, let’s take a quick look at what Dubber does.

Dubber operates a software-as-a-service (SaaS) business model. This basically means it sells licenses to companies so that they can access and use Dubber’s cloud-based software.

These sorts of business models can be quite attractive to investors (if successful) as they can provide dependable revenue streams in the form of recurring subscription payments from clients.

Many emerging ASX tech companies employ similar models, including Bigtincan Holdings Ltd (ASX: BTH), ELMO Software Ltd (ASX: ELO) and Megaport Ltd (ASX: MP1).

Dubber specialises in call recording software. The technology can help its clients manage and analyse large volumes of calls, which can help with sales optimisation, customer retention, staff training and can even help to ensure companies meet compliance targets.

The software even uses artificial intelligence to measure customer sentiment, providing emotional insights into a company’s performance.

Recent news

What really got the Dubber share price skyrocketing was the news on 14 April that it is set to partner with US-based telecommunications company Zoom Video Communications Inc (NASDAQ: ZM). Businesses will now be able to record their Zoom conversations and use Dubber’s software to analyse these calls.

Zoom became a globally recognised brand during the COVID-19 pandemic, as it has supported companies who have had to adapt to remote working arrangements.

Following this announcement was Dubber’s March 2021 quarterly activities update, in which the company reported strong growth across just about all of its key metrics.

Revenues increased by a whopping 54% quarter on quarter (to $2.3 million), driven by record growth in customer numbers. Annualised recurring revenues from its subscription-based licenses reached $34 million, a jump of $5.6 million (or 20%) over the previous quarter. Dubber also ended the quarter with almost $38 million in cash on its balance sheet.

Commenting on the results, company CEO Steve McGovern stated that, “The company is very well positioned to continue to take advantage of the major shift towards cloud-based and ‘work from anywhere’ communications we are seeing in all geographies.”

What next for the Dubber share price?

The fact that Dubber is quickly growing its customer base and inking deals with internationally recognised telecommunications companies like Zoom seems to be resonating with investors.

However, Dubber is still a junior company and a speculative investment. On Thursday alone its share price slumped almost 10% after one of its major investors (Regal Funds Management) ceased being a substantial holder, showing that the Dubber share price can still be incredibly volatile.

But, for those of you who can stomach those sorts of price swings, Dubber is arguably turning into an exciting ASX tech company. It will be interesting to watch how its share price performs over the next few months.

More reading

• Why Dubber, PointsBet, Starpharma, & Westpac shares are storming higher
• Dubber (ASX:DUB) share price surges 16% on triple-digit growth
• Why Dubber, Mesoblast, PointsBet, & Sezzle shares are storming higher
• Why the Dubber (ASX:DUB) share price just smashed its all-time high
• Westpac (ASX:WBC) and these ASX shares have just hit 52-week highs

Rhys Brock owns shares of BIGTINCAN FPO, Dubber, Elmo Software, and MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO, Elmo Software, MEGAPORT FPO, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Dubber. The Motley Fool Australia has recommended BIGTINCAN FPO, Elmo Software, MEGAPORT FPO, and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Dubber (ASX:DUB) share price is up 50% since the beginning of April appeared first on The Motley Fool Australia.

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When I wrote on Wednesday about being wrong, I was pleasantly surprised by the response.

Most of you empathised with me getting my Challenger Ltd (ASX: CGF) recommendation wrong.

One of you — no names, no pack drill — decided to also bring up my Domino’s Pizza Enterprises Ltd (ASX: DMP) stuff-up. 

I choose to believe it was in sympathetic jest!

Still, the responses reminded me of something important: we’re all in this together.

Yes, we’re all trying to ‘beat the market’, and in that sense, we’re trying to beat each other, but the reality is that you and I — the humble individual investor — will always be in the minority in this caper.

So there’s no reason we can’t all beat the big guys at their own game.

Because that’s the other side of the ‘being wrong’ bit.

Thus far, at Motley Fool Share Advisor — and as we find ourselves only 6 months away from our 10th birthday — we’re beating the market.

Despite the mistakes, (negative) surprises, and disappointments, the average Share Advisor recommendation has a higher return than if we’d invested in the All Ordinaries Index (ASX: XAO) on that date, instead. (Both including dividends, by the way, and excluding any fees you’d pay for an ETF that tracked the index.)

Now, I make that point not just to rescue my ego (though we’re all human), but to put my mistake in context.

Because I want to show you that mistakes, far from defining an investor, should be accepted as one of the costs of investing in the first place.

Oh sure, you can buy an index-tracking ETF, get the market return (less a little in fees) and go fishing, shopping, back to work, or whatever else you want to fill your time with.

Indeed, many people should do just that.

But I think it’s possible to beat the market if you have the time, interest, support and stomach for volatility.

Indeed, I think that’s what Share Advisor has shown. And most other Motley Fool services.

Now, past performance is no guarantee. I’m the first to say that (and have done so regularly).

But I think it’s important to remember that we’ve done it despite making some mistakes, having bad luck and everything in between.

Not in the absence of those things.

Despite them.

We’ve had big winners. Smaller winners. And big and small losers.

No sugar-coating it.

To use an imperfect analogy, a golf tournament isn’t decided on the number of birdies. Or bogeys.

But, instead, by the sum total of the strokes taken over 72 holes.

A football match isn’t determined by the number of line breaks. Or missed tackles. 

But, instead, by the net difference of points scored and points conceded.

You don’t win the game by making no mistakes.

You win it by making fewer than the opposition and scoring more points than them.

Perfection — or at least continuous improvement — might be the goal, but it’s not the prerequisite for success.

Thing is, those analogies are imperfect.

A ‘winning’ hole of a birdie and a ‘losing’ hole of a bogey are symmetrical: -1 and +1 respectively.

A line break might result in a 4 point try, and a missed tackle might cost you a 4 point try.

But if you invest well, your losers can only cost you 100%. That’s pretty tough to take.

But your winners? They can gain more. A lot more.

You know the examples: Warren Buffett’s long term performance at Berkshire Hathaway. Amazon’s stunning success over more than two decades (I own shares in both… unfortunately I haven’t had either since the beginning!).

You could have bought 31 companies — Amazon and 30 others that subsequently went broke — on the day of Amazon’s IPO, and you’d still have made a fortune.

Now, Amazon is clearly an outlier. You won’t see many Amazons in an investing lifetime.

But there are lots of long-term 2- 5- and 8-baggers on the market.

And the good news is that the longer you hold quality companies, the greater the odds of achieving those sorts of results.

Woolworths Group Ltd (ASX: WOW), today selling for over $39, originally listed at under $3. And that’s not including the dividends paid in the interim.

Only this morning, I noticed my Berkshire Hathaway shares had tripled (on average) since I bought them.

That’s not hypergrowth. And helped by me buying some during the depths of the GFC more than a decade ago.

But it’s an example of the power of long term compounding. And buying quality.

So, thanks to those of you who empathised with my recent mea culpa.

I really appreciate it.

The bad news is that I’ll make more.

The good news is that as long as I can continue to find companies that more than make up for those mistakes, they won’t be fatal… and the mistakes will hopefully be the exceptions that prove the rule.

Fool on!

More reading

• 2 fantastic blue chip ASX 200 shares rated as buys
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• Vicinity (ASX:VCX) sees improvements as it struggles back to COVID-normal
• ASX 200 Weekly Wrap: Shares have average week but a great month
• These were the worst performing ASX 200 shares in April

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 and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Berkshire Hathaway (B shares) and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), short January 2022 $1940 calls on Amazon, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Amazon, Berkshire Hathaway (B shares), and Dominos Pizza Enterprises 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 Tabcorp Holdings Limited (ASX: TAH) share price will be one to watch closely on Friday morning. This follows the gambling company’s announcement after market close yesterday of a revised takeover offer.

The Tabcorp share price was trading at $5.01 at Thursday’s closing bell after edging 0.2% higher for the day.

Details of the revised proposal

Tabcorp shares will be in focus this morning after the company revealed it has received an improved proposal.

According to its release, Apollo Management has put a revised offer on the table to acquire Tabcorp’s Wagering & Media and Gaming Services businesses.

Headquartered in New York, Apollo Management is an international private equity firm that manages capital for hundreds of fund investors. The company has offices in dozens of countries looking after pension funds, sovereign wealth funds, university endowments, charitable foundations, financial institutions, and family offices.

The revised unsolicited, non-binding and indicative proposal matches a prior bid by United Kingdom sports betting and gambling company Entain plc (LON: ENT).

Both companies have tabled an offer of $3.5 billion for Tabcorp’s Wagering & Media business. However, Apollo Management has put forward a further offer to also acquire Tabcorp’s Gaming Services assets for a combined value of $4 billion.

The revised proposal from Apollo Management is subject to a number of conditions. These include due diligence, finance arrangements, receipt of all regulatory approvals (including ACCC and FIRB), and third-party consents.

Tabcorp management noted that it has not yet decided on the revised proposal and will assess it in line with its strategic review.

The board is currently considering whether to sell its Wagering & Media business to a third party or demerge the asset from its lotteries arm.

How has the Tabcorp share price performed lately?

It has been a good 12 months for Tabcorp shareholders with the company’s share price up over 60%. Year-to-date performance has also been solid, with the Tabcorp share price posting gains of around 28%. It’s worth noting that Tabcorp shares reached a multi-year high of $5.06 on Wednesday.

Based on the current share price, Tabcorp commands a market capitalisation of about $11.1 billion, with 2.2 billion shares outstanding.

More reading

• Why Bingo, Life360, Tabcorp, & Vulcan shares are storming higher
• ASX 200 down 0.5%: Bingo & Tabcorp takeovers, BlueScope upgrades guidance
• Why the Tabcorp (ASX:TAH) share price is in the spotlight
• Leading brokers name 3 ASX shares to buy 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.

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

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More reading

• 2 stellar ASX growth shares rated as buys
• 2 ASX dividend shares with 4%+ yields
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops, Nearmap plunges, Appen declines
• 2 explosive ASX growth shares rated as buys

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post LIVE COVERAGE: ASX expected to rise; Macquarie Group to report full year results appeared first on The Motley Fool Australia.

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If you’re interested in adding some growth shares to your portfolio, then you may want to take a look at the ones listed below.

Here’s why they have been rated as buys:

Breville Group Ltd (ASX: BRG)

The first growth share to look at is this appliance manufacturer.

Breville has been growing at a consistently solid rate for a number of years. This has led to the company’s shares providing investors with market-beating returns over the last five years.

The good news is that its growth doesn’t look likely to be ending any time soon. Thanks to a combination of growing demand, acquisitions, and its international expansion, Breville has been tipped as a company that could continue growing its sales for some time to come.

That is certainly the view of analysts at UBS. They appear confident in its long term growth story thanks to product launches and its expansion into new markets. The broker currently has a buy rating and $35.70 price target on its shares.

REA Group Limited (ASX: REA)

Another ASX growth share to consider is REA Group. It is the dominant player in real estate listings in the Australian market.

Over the last few years, the company has been battling tough trading conditions. But thanks to the strength and resilience of its business model, the company came out on top.

The good news is that the tide is now turning and trading conditions are becoming very favourable. So, after cutting costs materially and introducing new revenue streams, the company looks set to reap the rewards as demand for listings increases due to the thriving housing market.

This should be supported by its international operations, which have large opportunities of their own.

Morgan Stanley is very positive on REA Group. Its analysts currently have an outperform rating and $172.00 price target on its shares.

More reading

• Why AnteoTech, Domain, Flight Centre, & Nick Scali are sinking today
• 2 high quality blue chip ASX 200 shares rated as buys
• REA (ASX:REA) share price eyes new record highs after running 10% in April
• These ASX 200 shares are tracking the Aussie economy higher in 2021
• Why Zip (ASX:Z1P) and these ASX shares are rated as buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA 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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If you’re wanting to beat low interest rates in 2021, then you might want to look at the dividend shares listed below.

They offer investors attractive yields that are vastly superior to term deposits and savings accounts. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

The first ASX dividend share to look at is BWP Trust. It is a commercial property company with a focus on Bunnings Warehouse sites. At the last count, it owned a total of 68 properties that were leased to the home improvement giant, making it the largest Bunnings landlord.

Thanks to the strong demand for home improvement products due to a redirection in consumer spending and government stimulus, Bunnings has proven to a fantastic tenant for BWP. It has enjoyed high occupancy rates and been able to collect its rent as normal this year.

This led to BWP reporting a 6% increase in profit during the first half, allowing the BWP board to reaffirm its plans to pay a full year distribution of ~18.3 cents per share. Based on the current BWP share price, this equates to a 4.35% dividend yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to consider is Rural Funds. It is an Australian agricultural property company with a portfolio of high quality assets.

These properties are leased to some of the biggest players in the agricultural sector on long term agreements. And with these leases including periodic rental increases, the company is well-positioned to deliver on its target of 4% growth in its distribution each year.

In FY 2022, Rural Funds intends to reward its shareholders with a distribution of 11.73 cents per share. This will be up 4% on FY 2021’s distribution. Based on the current Rural Funds share price of $2.42, this will mean a yield of 4.8%.

More reading

• 2 excellent ASX dividend shares with generous yields
• 3 reasons why Rural Funds (ASX:RFF) is a strong ASX dividend share
• 2 ASX dividend shares that could be great alternatives to term deposits
• 2 ASX dividend shares with very generous yields
• 2 ASX dividend shares with generous yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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 Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower. The benchmark index fell 0.5% to 7,061.7 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week on a better note. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher this morning. This follows a solid night on Wall Street, which saw the Dow Jones jump 0.9%, the S&P 500 climb 0.8%, and the Nasdaq rise 0.4%.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could finish the week on a low note after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.2% to US$64.86 a barrel and the Brent crude oil price is down 1.05% to US$68.24 a barrel. Concerns about rising COVID-19 cases in India is weighing on prices.

Macquarie full year results

The Macquarie Group Ltd (ASX: MQG) share price will be one to watch today when it hands in its full year results. In February, the investment bank revealed that it expects to deliver a profit result that is approximately 5% to 10% higher than FY 2020. All eyes will be on its guidance for FY 2021, with experts suggesting that it will have no choice but to guide to a decline in earnings in FY 2022.

Gold price jumps

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could finish the week strongly after the gold price jumped higher. According to CNBC, the spot gold price is up 1.7% to US$1,814.90 an ounce. Weakness in the US dollar and bond yields gave the precious metal a lift.

NAB rated as a buy

The National Australia Bank Ltd (ASX: NAB) share price is good value according to one leading broker. According to a note out of Goldman Sachs, its analysts have responded to NAB’s half year results by putting a conviction buy rating and $29.97 price target on its shares. This implies potential upside of ~13% over the next 12 months excluding dividends.

More reading

• ASX 200 drops, Nearmap plunges, Appen declines
• Australia’s trust in big banks up 19% in just 2 years: report
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs
• 2 reliable ASX 200 shares offering good income
• Why the Afterpay (ASX:APT) share price is sliding 5%

Motley Fool contributor James Mickleboro 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) dropped by around 0.5% today to 7,062 points.

Here are some of the highlights from today:

Nearmap Ltd (ASX: NEA)

The Nearmap share price fell by 23% after investors responded to the legal case relating to patent infringement.

Nearmap said that it was made aware on the morning of 5 May 2021 of a complaint filed against its subsidiary, Nearmap US Inc, in the United States District Court (District of Utah, Northern Division).

The complaint alleges patent infringement relating to the plaintiffs’ roof-estimation technology. The allegations do not affect Nearmap’s core proprietary technology and do not affect the surveying of imagery or the delivery of premium content. The business remains unaffected, according to management.

This complaint has been filed on behalf of Eagle View Technologies Inc and Pictometry International Corp. The plaintiffs are seeking unspecified monetary damages and the prevention of alleged further infringement in relation to the plaintiffs’ roof-estimation technology.

Dr Rob Newman, CEO and managing director of Nearmap, said:

Nearmap has always taken the subject of intellectual property rights and patent protections seriously and believes the allegations are without merit. We will vigorously defend against the complaint. The business remains unaffected by the complaint.

It was the worst performer in the ASX 200.

Appen Ltd (ASX: APX)

The Appen share price dropped 21.1% after giving investors an update about operating conditions.

Appen said there’s a lot going on in its market and the AI market in general. In most regards, things are unchanged according to management. However, there were a couple of things that had changed.

The tech business said that its customers are developing new AI products in response to COVID-19’s impact on online advertising last year and regulatory pressures such as anti-trust and data privacy. Appen said this dictates the data they need for product development and impacts their engineering resource allocations and the volumes and types of data they need from Appen. The company said that machine learning is an iterative process, and its customers are switching resources between development projects as they pursue new break-out products. This in turn has impacted a handful of its larger programs.

There was another main element that Appen pointed to. Its competitors outside of relevance are maturing. This is unsurprising, according to management. Appen says the presence and funding demonstrate that it’s an attractive market. Management believe that it is maintaining its leadership position and that it has to maintain its flow of new product features and fight harder to stay ahead.

It was the second worst performer in the ASX 200.

National Australia Bank Ltd (ASX: NAB)

NAB announced its FY21 half-year result.

The big ASX 200 bank reported that it generated $3.2 billion of statutory net profit. Cash earnings were up 94.8% to $3.3 billion. Cash profit was up 35.1% excluding large notable items.

NAB finished the half-year with a group common equity tier 1 (CET1) ratio of 12.37%. This helped the board declare a dividend of $0.60 per share, double what it was a year ago.

NAB CEO Ross McEwan said:

The rebound in the Australia and New Zealand economies from COVID-19 has been better than expected. This, along with the vaccine rollout and continued strong health outcomes, make us optimistic about the outlook.

But risks do remain. The recovery is not even, and some customers such as those in international travel and hospitality, particularly in CBD areas, still face significant challenges. Longer term outcomes for these customers depend on a number of factors expected to become clearer in coming months. These include the impact of jobkeeper ending, timing of the vaccine rollout and the reopening of international borders. Supporting customers and keeping the bank sake through this period remain our priorities.

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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 Appen Ltd and Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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