The Coles Group Ltd (ASX: COL) share price is rising today after the company increased its climate change commitments to use 100% renewable energy by 2025, signing two new energy purchasing agreements.

At the time of writing, the Coles share price is up 2.12% to $15.90. 

With over 2,507 large retail outlets nationally that are open long hours, Coles is a major Australian energy user. In addition, it is one of the country’s largest public retail companies. Coles providing customers with everyday products including fresh food, groceries, household goods, liquor, fuel, and even financial services.

Originally Australia’s second-largest retailer behind Woolworths Limited (ASX: WOW), Coles was acquired by Wesfarmers Ltd (ASX: WES) in 2007. However, it spun off from Wesfarmers in 2018 and Coles shares re-listed on the ASX at that time. As of 30 June 2018, Coles processed more than 21 million customer transactions on average each week.

What Coles’ renewable energy targets mean

Coles’ 100% renewable energy usage targets in just four years time. This is relatively impressive compared to the targets of some large companies. However, its more important pledge to be completely carbon neutral isn’t until 2050.

Despite this, the company says it’s moving in the right direction. In particular, signing two major agreements with leading renewable energy companies ENGIE and Neoen. 

Coles is planning on reaching its renewable energy targets by purchasing its electricity from renewable energy providers, rather than self-generation. It was the first major Australian company to sign a renewable purchasing-power agreement in 2019.

Some progress has already made on renewable power purchase agreements. This includes onsite solar and large-scale generation certificate deals. Coles has also committed to purchasing more than 70% of the renewable electricity required to meet its FY25 target, once the agreements commence.

What Coles management said

Coles chief sustainability, property and export Officer, Thinus Keeve, said the company wants to be a pillar of Australian sustainability. He commented:

As part of our ambition to be Australia’s most sustainable supermarket we’ve launched our new ‘Together to Zero’ sustainability strategy with a long-term aspiration towards zero emissions, zero waste and zero hunger.

The agreements are with some of the world’s top renewable electricity companies and show we’re taking a leading role in driving climate action in Australia.  It puts us in a great position to be powered by 100% renewable electricity by the end of FY25.

Share price snapshot

When the COVID-19 pandemic hit and the news soon became full of empty supermarket shelves and customers fighting over toilet paper, Coles shares rocketed and rose from $15 to $18 between May and August 2020.

Since then, despite a period of relative stability to end last year, they’ve declined fairly significantly. In February 2021, they fell off a cliff, falling $2 in one day due to the company’s poorer than expected FY21 half-year results.

The Coles share price is up 1.6% this month, but down more than 13% in 2021 so far.

More reading

• Why the Australian Primary Hemp (ASX:APH) share price is up 5%
• 2 of the best ASX dividend shares to buy
• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• Rates could be on hold for years so buy these excellent ASX dividend shares
• Where to invest your Rio Tinto (ASX:RIO) dividends

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Coles (ASX:COL) share price rises on “supercharged” renewable targets appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/32z5wjS

The Evolution Mining Ltd (ASX: EVN) share price is lifting today following the release of the company’s quarterly results.

At the time of writing, the Evolution share price is up 1.2%, swapping hands for $4.79 after falling to an intraday low of $4.70 in early trade.

Let’s dive into the company’s performance through the quarter just been.

Evolution Mining’s third-quarter results

The results for the period ending 31 March are the company’s weakest in FY21.

Evolution recorded earnings before interest, tax, depreciation and amortisation (EBITDA) of $110 million. In contrast, EBITDA was $227.1 million in the previous quarter.

Operating mine cash flow was 24% lower than in the second quarter, while total capital expenses were up. Group cash flow fell from around $99 million in the second quarter to around $39 million in the third, a 59% drop.

Not included in the EBITDA was the $119.6 million worth of interim dividends of 7 cents a share paid to Evolution shareholders. The company’s previous dividend was released in August 2020 and was 2 cents greater than that paid this quarter.

Evolution also paid $55.2 million worth of interest, taxes and debt repayments.

All of this combined resulted in the largest fall of the company’s cash balances in a single quarter so far this year.

In positive news, Evolution had $333.1 million in cash at the end of the quarter and bank debt of $500 million, leaving it with a net bank debt of $166.9 million.

The quarter that’s been for Evolution Mining

This quarter, Evolution became a participant in the world’s largest corporate sustainability initiative, the United Nations Global Compact. Doing so, it pledged to support the UN’s Ten Principles on human rights, labour, environment, and anti-corruption.

The company also announced an agreement to acquire Canadian gold miner Battle North for approximately C$343 million. The deal is awaiting a vote by Battle North’s shareholders.

The company’s injury frequency remained low, with its Mt Rawdon operations now 14 months injury-free.

The group’s all-in sustaining costs equated to US$980/oz. This makes Evolution one of the lowest cost major and mid-tier gold producers globally.

Heavy rainfall in March impacted the company’s Mt Rawdon operations, restricting access to higher grade ore. Its other projects have all continued as planned.

Evolution continues to manage COVID-19 across its operations.

Evolution share price snapshot

If today’s news continues to impact Evolution shares positively, they have a chance to get out of the ASX red. Currently, the Evolution share price is down by 9% year to date but only 4% over the last 12 months.

The company has a market capitalisation of around $8 billion, with approximately 1.7 million shares outstanding.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Why these 3 ASX 200 gold shares are racing higher today
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Brooke Cooper 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 What’s up with the Evolution (ASX: EVN) share price today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3eojRoK

ASX travel shares could get more investor attention as the sector experiences more of a recovery from COVID-19 impacts.

Investors got an insight into conditions with an update from Corporate Travel Management Ltd (ASX: CTD).

What did Corporate Travel Management tell the market?

Corporate Travel revealed that it is seeing strong domestic demand in the ANZ region with total client activity climbing to 85% of FY19 booking levels as of last week. It also said that New Zealand continues to be a standout and, as of last week, was trading at above 160% of FY19 booking levels. It also said that the US is experiencing positive signs of activity recovery.

On a more company-specific note, despite lockdowns in the UK and Europe, significant essential travel client wins in the region contributed to profitability.

It broke-even in March 2021 and expects positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the fourth quarter of FY21.

The business also said that the UK and US have among the most advanced vaccination rollouts and are on track for all people over 18 years of age to be vaccinated by the northern hemisphere summer (June or July). The speed of rollouts supports expectations of a rapid return to corporate domestic travel and meaningful levels of pan-European and trans-Atlantic travel after the northern hemisphere summer holiday period.

Can other ASX travel shares take positivity from that?

Each ASX travel share has a different business model and generates a different level of earnings from the ANZ region, the US, Europe and so on. There’s also different levels of exposure to the corporate market and the leisure market.

Webjet Limited (ASX: WEB) and Flight Centre Travel Group Ltd (ASX: FLT) both have sizeable positions in the ANZ travel market, and the corporate travel market.

Sydney Airport Holdings Pty Ltd (ASX: SYD) and Qantas Airways Limited (ASX: QAN) are integral parts of the system for getting corporate and leisure passengers from A to B.

However, a return of significant volume doesn’t mean that profit is going to return to normal. Corporate Travel only said that it had reached breakeven status. Businesses like Qantas still have large cost bases, though it is working on reducing that expenditure.

Is it plain sailing for ASX travel shares?

Not necessarily.

The Corporate Travel Management boss said that there are three key drivers that will continue to help economic growth in Australia and New Zealand.

He said that borders must remain open to restore confidence and maintain economic momentum. Mr Pherous pointed out that tracking and tracing capability is now at a very high standard.

The next point was that the vaccination rollout must be the priority for the government, with a sense of urgency to vaccinate the entire population over 50, those at risk and particularly frontline workers.

Finally, the government must establish and clearly communicate a framework for re-opening international trade, including clear metrics, benchmarks and timelines.

UBS rates the Corporate Travel Management share price as a buy, with a price target of $22.

More reading

• Brokers favourite ASX share for the COVID-19 reopening trade
• ASX 200 dips, Corporate Travel flies, Nuix sinks
• Why Corp Travel Management, Imugene, MoneyMe, & Syrah are pushing higher
• Why the Corporate Travel Management (ASX:CTD) share price is soaring today
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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 Are ASX travel shares about to go through a big recovery? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3x8sXP0

It’s no secret that women don’t benefit nearly as much as their male counterparts when it comes to our superannuation system. A super fund benefits the most when contributions are as high and consistent as possible. As such, interruptions to this process, like having a baby, can have disproportionate effects on women’s super compared to men’s. But this super gender gap has been made worse by the coronavirus pandemic.

According to Colonial First State’s Retirement Realities research, women’s super accounts have fared far worse than men since the coronavirus pandemic hit. This research analysed data from over 750,000 Colonial First State members over the five years from 2016 to 2020.

Women’s super cops the worst of the pandemic

This difference in how men and women’s super have coped with the pandemic wasn’t helped by the fact that men, on average, had more in their super finds than women before the pandemic even struck. According to Colonial First State, the average man had $88,934 in super in December 2020, compared to just $73,139 for women. That’s a gap of 18%. Which is actually worse than the gap of 16% that was present in 2016.

The report also states that men withdrew more of their super than women through the government’s early access scheme last year. Even so, the effect of the pandemic was still worse on women’s super balances due to the lower starting balances women had. Women experienced a 21% hit to their super balanced on average from the pandemic, compared to 18% for men’s super.

As mentioned above, the reasons for this imbalance are numerous. Consider the overall pay gap between men and women for starters. And then there’s the fact that women tend to take more time away from work when children arrive. Which usually results in a halting of super contributions. And the Retirement Realities research also found that men (at 61%) were statistically far more likely than women (at 39%) to salary sacrifice (put in extra money) into super as well.

So what can we do about the gap?

More reading

• Is Dogecoin still a joke?
• Why the Fatfish (ASX:FFG) share price is jumping today
• The Impedimed (ASX:IPD) share price rocketed 13% today. Here’s why
• What’s happening with the Wesfarmers (ASX:WES) share price today?
• Why the A2 Milk (ASX:A2M) share price hit a multi-year low today

Motley Fool contributor Sebastian Bowen 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 Shame on us: The super gender gap is still widening appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3v3ywMO

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

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

The cryptocurrency Dogecoin (CRYPTO: DOGE) is the talk of the town right now. The digital coin with a cute dog symbol never shied away from its meme-based origins. For example, the official Dogecoin site proudly claims that the currency is “favored by Shiba Inus worldwide.” But trading volumes and coin prices have skyrocketed in recent months.

Is it time to take the doge-themed joke coin seriously?

Dogecoin is still kind of funny

The cryptocurrency was designed as a lighthearted alternative to more serious digital coin platforms such as Bitcoin (CRYPTO: BTC) and Litecoin (CRYPTO: LTC). The adorable dog meme was chosen to represent this coin and its underlying community as an approachable symbol. Original designers Billy Markus and Jackson Palmer wanted to reach a broader market than the cryptic Bitcoin and Litecoin tokens, so Dogecoin leaned into the humor and graphic appeal of the doge meme with full force.

Even the recent surge of publicity and trading activity has relied on Dogecoin’s cheerful image. When Tesla (NASDAQ: TSLA) CEO Elon Musk pumped out a bunch of tweets to promote the currency in early February, he aimed right for the funny bone. “Who let the Doge out,” mused one Musk tweet. “No highs, no lows, only Doge,” said another. A third tweet featured a mandrill with Musk’s face lifting a baby doge to the sky in an edited Lion King scene that seemed to ask: Can you feel the love tonight?

And the coin has carried very little actual value for most of its history. Dogecoin prices briefly peeked above $0.01 per token in the crypto boom of 2017-2018 but quickly dove back to fractions of a cent again. At the start of 2021, one Dogecoin token cost just 0.5 cents. The ultra-low prices played into Dogecoin’s joke status.

Things have changed

The semiserious push from Elon Musk and a concerted effort from the Reddit community known as WallStreetBets has shown Dogecoin in a different light. The coin now stands among the ten largest cryptocurrencies by market value and is number four in terms of daily trading volumes. Dogecoin has exceeded parent currency Litecoin, from which the cryptocurrency’s technology was copied with a couple of tweaks, in both of these metrics.

To be clear, Dogecoin’s market cap of $40 billion is comparable to that of auto giant Ford (NYSE: F), and the trading volume of $22 billion in the last 24 hours exceeds that of Wall Street heavy hitters like Apple (NASDAQ: AAPL) and its $13 billion daily trading volume. This humble token is moving a lot of money right now, almost demanding to be taken seriously.

The story doesn’t end there. Retailers are dipping their toes into the Dogecoin waters, accepting DOGE payments for things like online security services, Dallas Mavericks tickets, and of course Tesla cars. In fact, hundreds of merchants will accept Dogecoin since the popular cryptocurrency payments portal BitPay started to process DOGE payments in March. That’s how the Mavs are managing their incoming Dogecoin payments, for example.

Is DOGE the real deal, then?

The rising interest in Dogecoin may actually burnish the token as a legit payment option for the long haul — but we’re not there yet.

Dogecoin’s technical underpinnings were always quite serious, being a near-perfect carbon copy of those of Litecoin, which in turn relies on blockchain technology snagged directly from market leader Bitcoin. The differences are small and technical in nature. Litecoin and Dogecoin rely on a different encryption algorithm from Bitcoin, which calls for a different type of digital mining chip. Furthermore, Dogecoin doesn’t have a hard cap on the total number of tokens that can be mined over time, as the other two currencies do. For most people, none of these changes make much of a difference to the token’s real value.

The value of any cryptocurrency is ultimately determined by its utility as a payment service or store of value, and both of these concepts depend on a widespread market embrace. Therefore, Elon Musk and Mavs owner Mark Cuban may have started Dogecoin on the road to long-term respectability — assuming that their efforts and the skyrocketing asset price inspire lots of retailers and investors to treat the jokey token as a seriously valuable transaction tool.

Only time will tell, of course. For now, Dogecoin remains a bit of a joke, but the digital currency might be going places that call for a suit and tie soon enough. It’s far from my favorite investment idea in the cryptocurrency space, and I would recommend that you keep your Dogecoin moves small until further notice. It’s a long way down to $0.005 per token if this surge fizzles out.

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

More reading

• Is Square the long-term stock for you?
• Aussie fintech lets ANYONE receive salary in Bitcoin (CRYPTO:BTC)
• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• Forget the Bitcoin price, the Dogecoin price is on fire!
• Do you think the Bitcoin price is a bubble? Read this

Anders Bylund owns shares of Bitcoin, Litecoin, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, Bitcoin, and Tesla and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is Dogecoin still a joke? appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/2PbrDKd

The Fatfish Group Ltd (ASX: FFG) share price is jumping out of the water today. At the time of writing, shares in the tech investment company are trading at 12 cents – up 4.35%. By comparison, the All Ordinaries Index (ASX: XAO) is currently just 0.35% higher.

Today’s price gains come as the company announced an increased stake in a buy now, pay later (BNPL) provider.

Let’s take a closer look at today’s developments.

Fatfish gets fatter

In a statement to the ASX, Fatfish announced it was “raising its stake in the Singapore BNPL provider [Smartfunding] to 89.4% from 78.7% earlier.” Fatfish Group will now own 39.95% of stock directly and its Swedish subsidiary, Abelco, owns a 49.4% stake. Fatfish bought the extra shares under a rights issue worth $300,000.

As Smartfunding is headquartered in Singapore, Fatfish needed to seek the permission of the Singapore Central Bank to increase its ownership of the company under Singaporean law. The Central Bank subsequently gave its approval for the purchase.

Smartfunding is a fintech platform licensed by the Monetary Authority of Singapore. It recently launched a BNPL platform for small and medium enterprises throughout Southeast Asia.

The increased investment is going down well with investors, judging by today’s Fatfish share price moves.

Speaking on the news, Fatfish CEO Kin W. Lau commented:

Smartfunding is pioneering the BNPL service for SMEs in Southeast Asia. By increasing our direct stake in Smartfunding, we will be in a stronger position to drive the business forward and to provide Smartfunding with all the support it needs to succeed.

This is not Fatfish’s first foray into the BNPL industry. It recently announced the acquisition of Malaysian BNPL provider, Forever Pay.

Fatfish share price snapshot

Over the past 12 months, the Fatfish share price has increased by a massive 1,025%. It is, however, around 74% lower than its all-time high of 43 cents a share. The record was briefly achieved in intraday trading on 17 February this year, with the company’s shares ending that day at just 18 cents. This also followed huge gains in the value of Fatfish shares during the prior day’s trading session. 

Fatfish has a current market capitalisation of around $108 million.

More reading

• Fatfish (ASX:FFG) share price jumps 12% on BNPL acquisition update
• Why the Fatfish (ASX:FFG) share price is soaring today
• Fatfish (ASX:FFG) share price jumps 9% on positive update
• Down 20% with no news, what’s with the Cirralto (ASX:CRO) share price?

Motley Fool contributor Marc Sidarous 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 Fatfish (ASX:FFG) share price is jumping today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3szOm04

The Impedimed Limited (ASX: IPD) share price was off to a flying start this morning, up 13% at market open.

The positive price movement came as the medical technology company announced it received Food and Drug Administration (FDA) clearance for a new heart monitoring device in the United States.

At the time of writing, shares in the company are up 8.7%, trading at 12.5 cents. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.08% higher.

Let’s take a closer look at today’s news and what it means for the Impedimed share price.

Impedimed’s new product

In a statement to the ASX, Impedimed advised it has received FDA 510(k) clearance for its SOZO device to include a heart failure index (HF-Dex) as a monitoring tool for patients living with heart failure.

The 510(k) clearance is a requirement for launching new medical products in the US.

Impedimed says the HF-Dex can measure fluid levels in people using a 30-second, non-invasive test. According to the company, the product presents the data in graphical format for a quick assessment and is most useful in conjunction with other clinical data.

In addition, the Impedimed said the product “has been demonstrated in peer-reviewed publications and abstracts accepted at internationally renowned cardiology conferences”, such as the American College of Cardiology and the Heart Failure Society of America.

What did management say?

Commenting on the news, Impedimed CEO Richard Carreonsaid said:

We are very pleased with this expanded clearance for SOZO that includes our heart failure index. This is a major step forward in SOZO becoming the standard of care for the management of heart failure patients.

The use of HF- Dex will provide clinicians unparalleled insights into the extracellular fluid accumulation in heart failure patients that has not otherwise been readily available to them before.

Impedimed share price snapshot

Over the past 12 months, the Impedimed share price has increased 212%, although it’s up just 4% year-to-date. Today’s news regains the ground lost yesterday when the company’s shares fell 11.5%.

Impedimed has a market capitalisation of $171.5 million.

More reading

• Why the Fatfish (ASX:FFG) share price is jumping today
• What’s happening with the Wesfarmers (ASX:WES) share price today?
• Why the A2 Milk (ASX:A2M) share price hit a multi-year low today
• Why the Sequoia (ASX:SEQ) share price is racing 15% higher today
• Splitit (ASX:SPT) share price edges higher on new product launch

Motley Fool contributor Marc Sidarous 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 The Impedimed (ASX:IPD) share price rocketed 13% today. Here’s why appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2QgbRhM

The Wesfarmers Ltd (ASX: WES) share price is falling slightly today. However, in positive news for the company’s New Zealand employees, Kmart has reached a “living wage” agreement with the country’s retail workers union, FIRST Union.

The Wesfarmers share price is down 0.52% to $55.59 at the time of writing.

Wesfarmers is a diversified business. It’s broad operations including home improvement and outdoor living, apparel and general merchandise, and office supplies. In addition, the company has an industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products.

Wesfarmers subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks, and more.

Wesfarmers ‘living wage’ agreement

FIRST Union says the pay rise for Kmart workers is a retail industry landmark. It’s a recognition by the major Wesfarmers brand to uphold living wage benchmarks. These are set by an independent economic advisory panel in New Zealand. 

According to the union, the deal will mean hundreds of sales assistants will move to living wages.  In addition, there will be wage increases for longer-serving staff, a new CA allowance for union members, and a commitment to staffing health reviews.

New employees at Kmart will now receive at least the current living wage of NZ$22.10 per hour after six months of experience. Pay rates will also increase for Coordinators and DC Team Members as well as sales workers.

FIRST Union is New Zealand’s second-largest private sector trade union. It has been negotiating with Kmart and Bunnings over pay raises for its staff. According to the union, fellow Wesfarmers brand, Bunnings, is still holding out on providing a living wage for its staff.

What FIRST Union said

FIRST Union Secretary for Retail and Finance, Tali Williams, said it was a significant step for New Zealand retail workers:

Kmart have recognised that their workers are the ones who’ve kept the business afloat and profitable throughout the pandemic year, and are doing the right thing by ensuring workers are paid a living wage. I’m proud of our negotiating team, who made their claims clear and approached the bargaining calmly and with unity.

Major retailers like Kmart have not experienced the drop in profitability that many predicted, and this offer shows that these companies are more than capable of paying their staff a living wage even during a year of crisis.

Wesfarmers share price snapshot

The Wesfarmers share price has been a powerful performer as Australia and New Zealand’s economies rebound and retail spending increases. The company’s share price is up more than 9% the past month and 51% over the past 12 months.

More reading

• Why the Wesfarmers (ASX:WES) share price is edging higher
• Top broker thinks Wesfarmers (ASX:WES) share price is good value
• Latitude (ASX:LFS) makes a splash on its ASX debut
• 2 of the best ASX dividend shares to buy
• Wesfarmers (ASX:WES) share price climbs 10% in a month amid ‘favourable momentum’

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What’s happening with the Wesfarmers (ASX:WES) share price today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3xcTcUt

The A2 Milk Company Ltd (ASX: A2M) share price is edging lower today.

In early afternoon trade, the infant formula and fresh milk company’s shares are down 0.5% to $7.68.

At one stage today, the a2 Milk share price hit a multi-year low of $7.58.

Why is the a2 Milk share price edging lower?

Investors have been selling the company’s shares today after one of its biggest supporters began to doubt its recovery.

According to a note out of Morgans, the broker has downgraded a2 Milk’s shares to a hold rating from add and slashed the price target on them by almost 20% to $8.34.

The broker made the move after its research indicated that prices in China are not improving and retailers in the local market are discounting inventory ahead of use by dates. Morgans fears that its excess inventory could be a bigger problem that it previously anticipated.

Based on this, the broker believes that a2 Milk is unlikely to achieve its guidance for FY 2021. This would be bitterly disappointing given how the company has downgraded its guidance numerous times since it was first given to the market.

What else is weighing on its shares?

Morgans isn’t the only broker talking about a2 Milk today. This morning Citi reiterated its sell rating and $7.15 price target on the company’s shares.

It also has concerns over discounting as excess inventory nears its use by dates. But as well as this, the broker’s research appears to indicate that Chinese consumers are now preferring domestic brands for consumer products. This includes athletic brands, vitamins, and, unfortunately, infant formula. It feels this could impact demand in the key market.

For the same reason, the broker retained its sell rating and 35 cents price target on Bubs Australia Ltd (ASX: BUB) shares.

Following today’s decline, the a2 Milk share price is now down approximately 59% over the last 12 months.

More reading

• Declining birth rates could threaten the A2 Milk (ASX:A2M) share price
• Leading brokers name 3 ASX shares to sell today
• Is the worst over for the A2 Milk (ASX:A2M) share price?
• China’s dairy stocks rise: What does this mean for the A2 Milk (ASX:A2M) share price?
• A2 Milk (ASX:A2M) share price sours amid international student uncertainty

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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 A2 Milk (ASX:A2M) share price hit a multi-year low today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sGF2Yc

The Sequoia Financial Group Ltd (ASX: SEQ) share price is on the rise in early afternoon trade. This comes after the company announced a trading update and revised guidance for FY21.

At the time of writing, the financial services company’s shares are fetching for 52 cents apiece, up 15.5%.

Sequoia performance snapshot

Investors are driving Sequoia shares within a whisker of reaching a new multi-year high following the company’s positive release.

In its announcement, Sequoia advised it is strongly performing to date with growth across key sectors.

A number of factors during the current financial year has led revenue to surge past what the company was anticipating.

The company attributed the increase to a number of factors including the successful integration of transactions. This includes:

• Business and adviser acquisitions achieving better than expected results (including Panthercorp, Phillip Capital Advisers and Total Cover);
• Surge in monthly trading volumes in Morrison securities;
• Robust growth in brokerage and commissions from the financial planning and stock broking businesses;
• Improved performance in the self-managed super fund (SMSF) administration and document businesses.

Sequoia noted that it is continuing to explore acquisition opportunities to add better value to its core customers.

Significant updated guidance

In further news boosting the Sequoia share price, the company provided an update guidance for FY21.

Previously in February on the release of its half-year results, Sequoia forecasted $110 million in revenue, and earnings before interest, tax, depreciation and amortisation (EBITDA) of $7 million.

However, after reporting strong trading conditions, the group is projecting an increase in revenue and EBITDA for FY21.

Revenue is predicted to soar between $110 million and $120 million, compared to the $84.5 million achieved in FY20.

EBIDTA is envisaged to exceed original estimates by roughly 25%, to come in the range of $8.5 million and $9 million. In the prior comparable period, EBITDA stood at $4.82 million.

Sequoia share price summary

Sequoia shares have skyrocketed over the last 12 months, gaining more than 180% on the back of positive investor sentiment. The company’s shares reached a multi-year high of 53 cents in the middle of February, before treading lower until now.

Sequoia has a market capitalisation of about $67 million, with 130 million shares on issue.

More reading

• What’s happening with the Wesfarmers (ASX:WES) share price today?
• Why the A2 Milk (ASX:A2M) share price hit a multi-year low today
• Splitit (ASX:SPT) share price edges higher on new product launch
• Why the Blackmores (ASX:BKL) share price is under pressure today
• ASX 200 up 0.2%: AMP sinks, Redbubble crashes, Megaport jumps

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 Sequoia (ASX:SEQ) share price is racing 15% higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/32B4gN5