The Adairs Ltd (ASX: ADH) share price is climbing on Tuesday following an update on the acquisition of Mocka.

Founded in 2007, Mocka is an online furniture business based in Brisbane, Australia, and in Christchurch, New Zealand. The company sells home furniture and décor as well as kids and baby products.

In mid-morning trade, Adairs shares are up 1.53% to $4.64.

Let’s take a closer look and see what the company announced.

Adairs brings forward Mocka acquisition

Investors are snapping up Adairs shares after the company provided some positive news.

According to its release, Adairs stated that it has entered into an agreement with the vendors of Mocka to bring forward a settlement.

Back in November 2019, Adairs signed a purchase agreement for the deferred consideration component of Mocka. The 35% interest was to be split across two tranches on 30 September 2021 (15%), and in September 2022 (20%). The payable amount was based on the previous years of underlying earnings before interest and tax (EBIT).

However, under the revised agreement, Adairs will pay NZ$48 million (A$45 million) in September 2021 to acquire the entire 35% stake. This will be funded by the company’s existing cash and term debt facilities.

In total, Adairs will have paid NZ$100 million (A$95 million) for the whole of Mocka following the September 2021 payment. This equates to around 7 times FY21’s EBIT forecast for Mocka.

Adairs managing director and CEO, Mark Ronan commented:

This is a positive development for Adairs. Mocka has performed ahead of the expectations we had of the business when we acquired it in December 2019. Since then, our understanding of and confidence in the potential for the business has continued to develop, especially the scope for substantial further growth in Australia.

The early settlement of the deferred consideration enables the business to continue to invest in the short-term to realise the long-term potential that is beyond the time horizon of the founders. The total consideration paid for the business represents excellent value for Adairs shareholders.

In addition, Adairs noted that it expects to announce a new CEO for Mocka in August 2021. In the interim, the founders will remain in the business to support the transition until 30 September 2021.

Adairs share price review

It has been a strong 12 months for the Adairs share price, reaching a record high of $4.97 in late April. The company’s shares have continued their upwards trajectory, gaining almost 40% in 2021 alone.

Based on today’s price, Adairs commands a market capitalisation of roughly $772 million, with approximately 169 million shares outstanding.

The post Why the Adairs (ASX:ADH) share price is edging higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. 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 Monadelphous Group Limited (ASX: MND) share price is gaining in morning trade, up 2%.

The engineering company provides construction, maintenance and industrial services to the resource, energy and infrastructure sectors.

Below we look at its latest contracts update.

What did Monadelphous announce?

The Monadelphous share price is rising after the company reported it had secured several new construction and maintenance contracts.

The contracts, in the resources sector, are worth a total of roughly $215 million.

BHP Olympic Dam Corporation has engaged Monadelphous for smelter campaign maintenance works at its Olympic Dam copper mine in South Australia. Monadelphous said it will start work straight away, with the contracted work expected to be completed in December.

Monadelphous already has a separate maintenance services contract at Olympic Dam. This morning it reported a 2-year extension to that contract. This will include “civil, structural, mechanical, building maintenance and electrical services, as well as the addition of underground rail maintenance services”.

The company also reported it has secured several sustaining capital contracts under its panel agreements with Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) in the Pilbara region of Western Australia.

The contract with Rio will see Monadelphous provide construction and support services for the Gudai-Darri iron ore project. That work is expected to be completed by the end of 2021.

Monadelphous is also active internationally. It reported that its maintenance and construction services segment, Buildtek, has been awarded a 3-year contract in Chile with Codelco.

Monadelphous will manage the operations and maintenance of water infrastructure at Codelco’s Chuquicamata underground mine in Calama, Chile.

The company also received 2 other new contracts with Codelco as well as one with BHP Minera Escondida to construct “modularised pump stations and associated infrastructure” at the Escondida copper mine in Coloso, Chile.

Monadelphous share price snapshot

Monadelphous shares have been under pressure over the past 12 months, down 10%. By comparison the S&P/ASX 200 Index (ASX: XJO) has gained 23% in that same time.

Year-to-date the Monadelphous share price has continued to underperform, down 26%.

The post Why the Monadelphous (ASX:MND) share price is marching higher appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Acrux Limited (ASX: ACR) share price has been an exceptionally strong performer on Tuesday.

In morning trade, the pharmaceutical company’s shares are up a massive 39% to 16 cents.

Why is the Acrux share price rocketing higher?

The catalyst for the rise in the Acrux share price this morning has been the release of a very positive update.

According to the release, the US Food and Drug Administration (FDA) has granted approval of the company’s generic version of Jublia (efinaconazole) topical solution.

Jublia is an FDA-approved prescription topical solution that is applied on, around, and under the toenail. It reaches the site of onychomycosis to fight the fungus that lives beneath the nail. Acrux notes that Jublia sales currently exceed US$217 million per year in the United States.

This has been a lengthy process for Acrux. The company first submitted an abbreviated new drug application (ANDA) to seek approval from the FDA in June 2018. It has also been through a patent dispute, which has since been settled.

Positively, this is the company’s second generic product that has been approved by the FDA this year. In January, Acrux was given approval for a generic version of Perrigo’s Testosterone Topical Solution. This product has a US$25 million market opportunity in the United States at present.

What now?

Following the receipt of approval from the FDA, Acrux will progress licensing negotiations with a commercial licensee to commercialise the product. This will be in accordance with the terms of the patent settlement agreement. When launched, Acrux’s product will provide a lower cost alternative to Jublia for patients in the United States.

Despite today’s impressive gain, it is worth noting that the Acrux share price is still trading slightly lower year to date. Shareholders will no doubt be hoping it is onwards and upwards from here for its shares.

The post Why the Acrux (ASX:ACR) share price is rocketing 39% higher today appeared first on The Motley Fool Australia.

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• Openpay (ASX:OPY) share price shoots higher on UK acquisition

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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Shares in Talga Group Ltd (ASX: TLG) are shooting up this morning after the technology minerals company announced it has teamed up with Norwegian clean battery solutions business, FREYR.

In opening trade this morning, the Talga share price is up 6% trading at $1.495.

Talga partners up

In today’s statement, Talga advised it has signed a Memorandum of Understanding (MOU) for the supply of battery anode materials to FREYR.

Both companies are seeking to develop a local Nordic supply chain to produce clean, low-cost batteries.

Under the MOU, a framework will be established to help accelerate FREYR’s battery cell production under development in Norway. This will see a large-scale commercial supply of Talga’s Talnode range of anode materials to FREYR’s battery production facilities.

Both companies stated they were open to discussing binding long-term agreements such as licencing Talga’s anode technologies, or joint ventures.

In addition, a study will be assessed into looking at re-locating Talga operations within FREYR’s planned operations. It is thought that working side-by-side could potentially benefit battery manufacturing at an industrial level.

The non-binding MOU is valid for a period of 2-years, allowing enough time for a formal agreement to arise.

Management commentary

Talga managing director, Mark Thompson welcomed the MOU, saying:

We are very pleased to be working with FREYR to explore the use of our world-leading graphite and silicon anode materials and technology in their sustainable, high-performance battery cells. Additionally, we are pleased to discuss potential synergies towards strengthening our respective strategic positions in the global electric vehicle battery supply chain.

FREYR CEO, Tom Einar Jensen went on to add:

Developing a local supply of battery materials made with renewable energy under strong ethical and governance frameworks is a key element of FREYR’s strategy. By combining next-generation cell design and production technology with Norway’s low-cost renewable energy, and by unlocking sustainable localized supply chains enabled by companies such as Talga, FREYR is moving closer to realizing our ambition of producing large volumes of low-cost battery cells with one of the lowest carbon contents in the world.

About the Talga share price

Over the past 12 months, Talga shares trekked higher to register a gain of more than 200% for investors. However, the share price increase came predominately from the back end of last year.

In 2021, the Talga share price has moved sideways in 2021, down almost 13% year-to-date.

Talga presides a market capitalisation of roughly $427 million, with around 303 million shares on issue.

The post Why the Talga (ASX:TLG) share price is up 6% today appeared first on The Motley Fool Australia.

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

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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.

One of the market’s hottest stock pickers is cooling on Netflix (NASDAQ: NFLX) these days. It could prove to be a costly mistake. 

ARK Invest’s Cathie Wood has been trimming her stake in the world’s leading service for premium streaming video. She has sold Netflix shares in ARK Next Generation Internet ETF (NYSEMKT: ARKW) four times over the past five weeks. 

The exchange-traded fund has been one of the market’s biggest winners, up a scintillating 183% through the past four quarters. It’s true that owning Netflix has actually held Wood’s high-flying ETF back. Reed Hastings’ company only gained 39% in that time. However, history favors those who are long Netflix. 

Screening test

Wood isn’t necessarily bearish on Netflix. It continues to be among the fund’s holdings, and she has added to her Netflix position in one of her smaller ETFs. However, selling four small blocks of shares over the past few weeks (with the largest of the transactions taking place this past Friday) doesn’t make it seem as if she’s done reducing her position. 

Netflix would appear to be a model for any risk-tolerant investor eyeing disruptive growth investments. The company put premium streaming on the map, and by the end of March its subscriber ranks stood at 207.6 million active accounts. Most of its growth lately has come internationally, where it’s just starting to scratch the surface when it comes to reshaping the way viewers enjoy video entertainment. 

It’s hard to argue that Netflix isn’t the equivalent of basic cable in the non-linear television world. No one is building out its content catalog faster than Netlix, and no one knows its viewers better than the pioneer in this niche, after collecting data on binge habits for more than a dozen years. 

A testament to the power of Netflix is that it has increased its monthly ransoms for stateside customers five times over the past seven years. It continues to grow its user base despite the 75% price hike in that time. Its U.S. audience has doubled in that time, and its global audience has more than quadrupled. 

We might arrive at the day when Netflix finally overestimates its pricing elasticity, but until then, it continues to earn its share of the entertainment dollar by spending more and more on content. This is a scalable business, and the wider it grows its audience, the more value it can deliver per subscriber. 

It’s hard to bet against Hastings and his team. Even when Netflix seems to do something small (like the low-key opening of an online merch store), it has a high chance of success because of its highly engaged audience. Wood obviously knows what she’s doing, and the success of ARK Next Generation Internet ETF — where Netflix was a relative drag on performance over the past year — bears that out.

However, Netflix also has a longer track record of success than many of the fund’s larger holdings. It also has proved its all-weather appeal, growing in times of economic expansion and contraction. Just as Netflix is becoming the world’s default service for premium streaming video, it should also be standard in growth portfolios. One can’t deny Wood’s success when it comes to growth investing, but this time she might be selling the wrong stock.

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

The post Is Cathie Wood selling Netflix stock at the worst possible time? appeared first on The Motley Fool Australia.

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Rick Munarriz owns shares of Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Commonwealth Bank of Australia (ASX: CBA) share price was well and truly out of form on Monday.

The shares of Australia’s largest bank dropped a sizeable 5.7% to $98.06.

Why did the Commonwealth Bank share price tumble?

The Commonwealth Bank share price came under pressure on Monday after broad weakness in the banking sector offset the release of a positive announcement relating to another divestment.

In respect to the latter, the banking giant has signed an agreement to sell its general insurance business to underwriter Hollard Group for $625 million. It also includes undisclosed deferred payments that are payable upon achieving certain business milestones.

Furthermore, the agreement will see additional investment from Hollard throughout a 15-year strategic alliance to drive innovation and enhance the customer experience. Commonwealth Bank will also continue to earn income on the distribution of home and motor insurance products.

Should investors buy the dip?

Despite the sizeable pullback in the Commonwealth Bank share price on Monday, one leading broker doesn’t believe investors should be jumping in just yet.

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $89.50 price target on its shares. Based on the latest Commonwealth Bank share price, this price target implies potential downside of ~11% over the next 12 months.

The broker estimates that the deal with Hollard will boost its CET1 ratio by an estimated 9 basis points and expects it to support a $5 billion share buyback in August.

However, even after factoring this buyback into the equation, it isn’t enough for Morgan Stanley to become more positive on the bank. It notes that the company’s shares are trading on record high multiples and believes there is a better option for investors among the big four.

That option is Westpac Banking Corp (ASX: WBC). Earlier this month the broker put an overweight rating and $29.20 price target on its shares. This implies potential upside of ~10% over the next 12 months.

The post Top broker says the Commonwealth Bank (ASX:CBA) share price is still overvalued appeared first on The Motley Fool Australia.

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James Mickleboro owns Westpac shares. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The IGO Ltd (ASX: IGO) share price is back on form and charging higher on Tuesday.

At the time of writing, the clean energy focused mining company’s shares are up 9% to $7.75.

Why is the IGO share price on the rise?

Investors have been buying the company’s shares on Tuesday after it provided an update on its lithium transaction.

According to the release, key regulatory requirements for the internal restructure of the Australian arm of Tianqi Lithium Corporation to proceed have now been satisfied. The internal restructure is one of the conditions precedent to the transaction to form a new lithium joint venture with Tianqii.

The company notes that this follows Australian foreign investment approval and notice from the Australian Taxation Office (ATO) confirming the tax migration of the joint venture entity to Australia.

And while the ATO engagement process is ongoing, in order to expedite completion of the transaction, the two parties have now agreed to proceed to completion. This is on the basis that if there were an unforeseen tax outcome resulting from the internal restructure, IGO would share the tax liability with Tianqi in proportion to its joint venture interest of 49%.

What now?

The two companies are now working hard to complete the transaction on or before 30 June 2021, once the remaining steps required to complete the internal restructure are completed.

IGO’s Managing Director and CEO, Peter Bradford, commented: “We are delighted to have reached this important milestone and we look forward to formally commencing our joint venture with Tianqi in the coming weeks.”

“As a priority, the joint venture will initially be focused on the commissioning of Train 1 at the Kwinana Lithium Hydroxide Refinery, as well as working with our partner, Albemarle, on the expansion opportunities at the world class Greenbushes Lithium Mine. Demand for high quality spodumene and lithium hydroxide has increased significantly over recent months, promising strong returns to our shareholders as this trend, driven by global decarbonisation and electric vehicle demand, continues into the future.”

The IGO share price is now up 58% over the last 12 months.

The post Here’s why the IGO (ASX:IGO) share price is racing 9% higher today appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Openpay Group Ltd (ASX: OPY) share price is on the move on Tuesday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up 6% to $1.50.

Why is the Openpay share price is charging higher?

Investors have been bidding the Openpay share price higher this morning after it announced a “highly material” acquisition.

According to the release, the company has entered into an agreement to acquire 100% of Payment Assist for GBP11.5 million upfront, plus an earn-out component of up to GBP17 million. This comprises GBP8.2 million cash and GBP3.3 million in Openpay scrip, payable at completion.

Payment Assist is a leading BNPL provider to the UK automotive sector. The release notes that based on their respective calendar year 2020 performances, the combined UK entity would have recorded total transaction value (TTV) of GBP121.7 million. This is almost triple the UK TTV Openpay recorded of GBP43.6 million during the year. It would also have increased its revenue in the key market from GBP2.4 million to GBP8.4 million.

In respect to the impact on its overall business, management notes that the combined pro-forma group TTV for 2020 would have been 52% higher at $416.8 million. Whereas group revenue would have lifted by 47.4% to $34.2 million.

Openpay’s CEO and Managing Director, Michael Eidel, said: “In Payment Assist, we saw a unique opportunity to acquire a profitable, market-leading player in the £26.7 billion UK addressable automotive market. The proposed acquisition of this fast-growing business accelerates our automotive market entry and secures a significant foothold for Openpay in the UK. Material growth synergies exist between Openpay and Payment Assist.”

“We also have shared values and a common vision to become the leading BNPS provider in our verticals, globally. We want to be a responsible provider of alternative payment and credit solutions to our customers – importantly, it’s a core tenet of our strategy to embrace regulation in all of its forms. With this proposed acquisition, Openpay joins with a business that is already embracing UK Financial Conduct Authority regulation and brings a responsible approach to its customers and merchants. I look forward to welcoming Payment Assist into the Openpay family.”

Payment Assist’s Managing Director, Neil Jeffery, added: “By teaming up, Payment Assist and Openpay bring combined expertise and market knowledge which is unrivalled in the UK automotive industry. We are delighted to be joining with Openpay and look forward to the benefits we can bring to merchants and customers.”

The Openpay share price is down 70% from its 52-week high.

The post Openpay (ASX:OPY) share price shoots higher on UK acquisition appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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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.

ZoidPay, a cryptocurrency start-up with offices in Romania, Cyprus, and Hong Kong, has launched a nifty platform that lets consumers shop and pay in crypto at over 40 million major online retailers worldwide, including Amazon, eBay, and Alibaba. 

The “Shop Anything from Anywhere with Crypto,” team is zeroing in on an untapped market, a full-crypto payment shoppers’ platform that is usable in everyday life. ZoidPay relies on a practical ecosystem designed to benefit users in every way, ensuring a smooth, enjoyable shopping experience that works with most major retailers.

How ZoidPay Works

The platform features three main components to operate smoothly, a crypto payment card, digital wallet, and built-in marketplace (aka shoppers’ paradise).

Its crypto card lets shoppers make contactless payments with their crypto assets, while the digital wallet lets people manage their crypto in a user-friendly environment. By the way, merchants can also use it as an mPOS (mobile point of sale) to accept crypto payments. Pretty neat.

The marketplace is a global merchants’ aggregator that provides users with over $1 billion liquidity per day to spend crypto assets on major e-commerce platforms, such as Amazon. 

Very simply, this means you decide how much (or how little) of your crypto you want to liquidate so that you can actually buy stuff on the marketplace. 

The shopping experience itself is simple. First, users browse as a typical shopping experience, using the marketplace, even taking advantage of search filters. Then, you can add items to your cart, select your tokens from your wallet and get your virtual card issued to complete your payment.

Plans also include Google Chrome Extension integration, which allows users to buy anything from anywhere globally with their crypto simply by connecting their existing digital wallets. 

As a bonus, the ZoidPay digital wallet can also be used in physical stores simply by using your smartphone as a POS (point of sale.)

ZPAY Token is one to watch

ZPAY is ZoidPay’s native token and the backbone of the ZoidPay Marketplace economy, offering several benefits to users. These range from zero transaction fees to exclusive staking rewards, discounts, and of course, access to the Marketplace itself.

According to the company’s whitepaper, ZPAY has a total supply of 700 million coins, with a listing price of $0.16 per coin. Thus, this is a functional token with good value and potential.

The end of Fiat?

With an ever-increasing interest in crypto payments, the MasterCard New Payments Index shows that 93% of consumers are considering crypto for their online shopping ventures. 

It’s start-ups like these that investors need to be keeping eyes on, this is the future of online shopping, and the market is only getting hotter.

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

The post Amazon, major retailers embrace Crypto payments appeared first on The Motley Fool Australia.

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Isabelle Korman does not own any of the stocks mentioned. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, and Mastercard. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended eBay and has recommended the following options: long January 2022 $1,920 calls on Amazon, short January 2022 $1,940 calls on Amazon, and short June 2021 $65 calls on eBay. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Mastercard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Cedar Woods Properties Limited (ASX: CWP) share price could be one to watch after the company revealed strong sales conditions are driving record property presales. At close of trade on Monday, Cedar Woods shares were trading at $6.52, down 2.69%

Let’s take a closer look at what the property developer reported.

What did Cedar Woods announce?

The Cedar Woods share price will be in the spotlight after the company advised its projects in South Australia and Queensland are experiencing very strong sales conditions. This has resulted in a “near-sellout” of available land lots at locations including Ellendale and Greville in Queensland, and Glenside and Fletcher’s Slip in South Australia.

To meet demand, the company said that additional sales releases will be planned in the coming weeks.

Elsewhere, Victorian land lots at Wollert and townhouses at St A. and Williams Landing are also performing strongly, with an increase in interest in apartments and office properties.

The company advised that its Victorian apartment projects, Lincoln at Williams Landing and Aster at Jackson Green, have both surpassed presales hurdles to begin construction, with settlements expected to occur by mid-2022.

In the release, Cedar Woods advised that Western Australia faced softer sales conditions in April, following the end of the government’s housing stimulus packages in March 2021.

Pleasingly, Western Australia has seen sales rebound through May and June.

Finally, Cedar Woods said that strong sales are expected to continue into FY22 at its seven land estates across metropolitan Perth. The company highlighted its Incontro estsate in Subiaco, where townhouses are nearly sold out and first apartments are expected to be released in 1Q22.

Financial impact

The positive updates across Cedar Woods’ property portfolio have driven presales to a record $439 million as at 31 May 2021.

The company said that these presales figures are up more than 20% on the $360 million balance recorded at 30 June 2020.

The presales will be settled in future financial years.

Management commentary

In response to the strong results, Cedar Woods managing director Nathan Blackburne said:

New stage releases across our portfolio, which are scheduled for the first quarter of FY2022, will extend sales momentum and underpin revenue growth in future financial years.

Cedar Woods share price performance

The Cedar Woods share price has had a relatively flat year-to-date performance, up by about 4%.

Despite underperforming the broader S&P/ASX 200 Index (ASX: XJO), the company has performed strongly from an operational and financial perspective.

Its third-quarter operational update on 29 April revealed a 53% uplift in forecast net profit after tax for FY21 to approximately $32 million, driven by an increase in presale contracts.

The positive update lifted the Cedar Woods share price up by 5.5% on the day to $7.45.

The company’s shares have since drifted around 12% lower to yesterday’s closing price.

The post Why the Cedar Woods (ASX:CWP) share price is in focus appeared first on The Motley Fool Australia.

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Kerry Sun has no position in any of the stocks mentioned. 
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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