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.

What happened

Shares of Facebook, Inc. Common Stock (NASDAQ: FB) were climbing last month as the social media giant benefited from optimism about the vaccine rollout and the economic recovery later this year as well as some bullish analyst chatter. There was no major news out on the company last month, but the tech stock did seem to benefit from a rotation out of high-priced growth stocks and into value stocks, which includes Facebook since the company now trades at a discount to the S&P 500.

According to data from S&P Global Market Intelligence, the stock finished the month up 14%. The chart below shows the gains during March.

FB data by YCharts.

So what

Jefferies was the first analyst group to share its support of Facebook last month as analyst Brent Thill said on March 8 that the stock looked attractive following a recent pullback. He added that it trades at a 40% discount to the Nasdaq despite expectations that revenue growth will accelerate in 2021.

Over the course of the month, Facebook also had several blog posts laying out its strategy in human-computer interaction, or augmented reality (AR) and virtual reality (VR), and the company said it was working on a wristband that would control AR glasses. Facebook sees VR and AR as the next frontier in technology, and its Oculus platform is one of the leaders in the space.

CEO Mark Zuckerberg also pleased investors when he did an about-face on Apple’s iOS 14, saying that he was confident that his company would be able to manage through the privacy shift, noting the strength of Facebook and Instagram Shops.

Toward the end of the month, Facebook’s WhatsApp also got approval to handle peer-to-peer payments in Brazil, and Deutsche Bank lifted its price target from $355 to $385 and kept a buy rating on the stock, noting positive feedback from the advertising community.

Now what

Facebook has gotten off to a good start in April as well. A strong jobs report pushed the narrative of economic recovery, and the analyst endorsements continued to roll in as Barron’s called the stock a buy over the weekend, and said it wouldn’t stay cheap for long.

Even at an all-time high, it still looks reasonably priced at a P/E ratio of 30. Keep an eye out for its first-quarter earnings report coming on April 28. The stock could take another step up if Facebook delivers a strong report again.

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

More reading

• Afterpay (ASX:APT) leads Zip by 40% on one critical measure
• Facebook poised to shoot 32% higher, says analyst
• Better Buy: Facebook vs. Twitter
• I want to double your money every 5 years: fundie
• How to counter the ASX 200’s Achilles heel

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jeremy Bowman owns shares of Facebook. The Motley Fool owns shares of and recommends Apple and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook. The Motley Fool Australia has recommended Facebook. 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 SG Fleet Group Ltd (ASX: SGF) share price has rocketed back to ASX trading with a 10 per cent share price surge. Shares in the Aussie fleet management group jumped 10.1% in early trade after nearly 2 weeks in a trading halt.

Why is the SG Fleet share price rocketing?

It’s been a big couple of weeks for the SG Fleet shareholders. Since entering a trading halt on Wednesday 24 March, the company has announced a $387 million acquisition and $86 million capital raising.

SG Fleet last week raised $72 million from its institutional entitlement offer. That offer was at $2.45 per New Share – a 5.0% discount to its last closing price of $2.58 on 23 March 2021.

That institutional offer achieved a 99.98% take-up rate from eligible shareholders. A further $14 million is expected to be raised from retail shareholders.

Those proceeds will go towards partially funding the group’s planned acquisition of LeasePlan ANZ. The scrip-based consideration will cost the equivalent of $387 million for the fleet management, car leasing and salary packaging competitor.

The SG Fleet share price has this morning returned to trading in a big way. Shares in the Aussie company have rocketed higher at the time of writing to a new 52-week high of $2.85 per share.

Investors have been waiting and watching for a chance to buy in following recent changes. That has seen shares in the fleet group surge higher today before paring back some of those gains in the late morning and early afternoon.

The S&P/ASX 200 Index (ASX: XJO) has also enjoyed a strong start to the morning. The benchmark Aussie index was up nearly 1 per cent at midday and approaching 6,900 points.

Foolish takeaway

The SG Fleet share price has rocketed higher in a strong start to the shortened trading week. Shares in the fleet management group have climbed after an acquisition announcement and capital raising, whilst the broader market has also lifted today.

More reading

• ASX 200 up 0.9%: Cleanaway jumps, tech shares rise, Incitec Pivot sinks
• Why the Incitec Pivot (ASX:IPL) share price tumbled 10% this morning
• Why the Regis Resources (ASX:RRL) share price is in focus
• Why the Vocus (ASX:VOC) share price is surging this year
• Why the Chorus (ASX:CNU) share price is on watch

Motley Fool contributor Ken Hall 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 Cleanaway Waste Management Ltd (ASX: CWY) share price has returned from the Easter break in cracking form, following the announcement of Cleanaway and Suez entering an agreement for the former to acquire the latter.

At the time of writing, the waste management company’s shareholders are cleaning up as the Cleanaway share price rallies 9.77% to $2.42 per share.

Details of the deal

The agreement entered yesterday relates to Cleanaway acquiring the Australian recycling and recovery business of France-based Suez. Cleanaway’s proposal for Suez R&R Australia values the business at $2.52 billion.

Finalisation of the buyout is conditional on a few line items. Firstly, the proposal will need regulatory thumbs up from the likes of the Australian Competition and Consumer Commission (ACCC) and the New Zealand Overseas Investment Office (OIO).

Secondly, Cleanaway will need to successfully finance the transaction (more on that later). Lastly, the acquisition is highly dependent on Veolia’s next move. Suez has the ability to terminate the deal with Cleanaway if Veolia was to lob a higher bid.

If all conditions are met after 26 April 2021 without termination, Cleanaway plans to tap the market to partially fund the transaction. Furthermore, the company will utilise additional debt facilities to finance the deal.

Cleaning up a portfolio of assets

Separately, Cleanaway has also agreed to scoop up a portfolio of strategic post-collection assets in Sydney. These include 2 landfill sites and 5 transfer stations, which would total $501 million. A combination of equity and debt is proposed for the funding of the Sydney assets.

Meanwhile, the core R&R transaction will add a workforce of more than 2,000 employees, 59 collection and depot facilities, 6 operating landfills, a fleet of more than 1,000 vehicles – among other assets.

According to the release, the Suez R&R Australia acquisition will add further scale and scope to create operating leverage and avenues to accelerate growth. Additionally, the proposed acquisition price represents an 11.7 multiple on normalised CY20 earnings before interest, tax, depreciation, and amortisation (EBITDA)

Cleanaway comments as share price gains

Cleanaway chief operating officer Brendan Gill commented on the proposed acquisition: 

Importantly, there is also strong alignment of operating approaches. The transaction is expected to bring together two highly complementary businesses and be strongly accretive to earnings per share when the integration is completed.

Cleanaway will continue to maintain a strong balance sheet following whichever transaction is completed and will retain ample capacity to support future growth for the combined group.

The comments reflect the optimism in the markets today, as the Cleanaway share price lifts. If the company can successfully integrate Suez the way it has with Toxfree solutions, further growth could be on the horizon.

Cleanaway executive general manager of strategy, mergers, and acquisitions, Frank Lintvelt, touched on this with his comments: 

Following lengthy discussions that first commenced in April 2020, we are pleased to have entered into an agreement with Suez.

With the successful acquisition and integration of ToxFree completed, which created significant value for shareholders, our team is well placed to manage the combination of Cleanaway’s business with Suez’s Australian Resource and Recovery business.

Accounting for the increase in the Cleanaway share price, the company’s market capitalisation is now $4.53 billion.

More reading

• ASX 200 up 0.9%: Cleanaway jumps, tech shares rise, Incitec Pivot sinks
• Why Afterpay, Codan, Cleanaway, & Webjet shares are surging higher
• Cleanaway (ASX:CWY) share price headaches continue with Veolia lawsuit
• This fundie refuses to invest in gambling and fossil fuels
• Morgans just added this ASX 200 share to its model portfolio

Motley Fool contributor Mitchell Lawler 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 Cleanaway (ASX:CWY) share price is soaring 9% today appeared first on The Motley Fool Australia.

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The Think Childcare Ltd (ASX: TNK) share price is surging 33% today. The astronomical sum comes after the company received a revised offer from Busy Bees Early Learning Pty Ltd for a takeover.

At the time of writing, the Think share price is trading at $3.06 – up 32.47%. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 1.17% higher.

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

Think share price shoots higher on bidding war

The Think share price is on a tear. In a statement to the ASX, Think announced it had received a revised offer of $3.20 per share from Busy Bees to buy 100% of the company. This latest offer represents a 52% premium on its previous offer of $2.10 per share.

The price paid will drop by the amount of any dividend paid by the group after the date of the proposal. Think advised it would pay a dividend of at least 34 cents a share, fully franked, soon.

The offer of $3.20 is 192% higher than the volume-weighted average price (VWAP) for the last month.

Busy Bees is in a bidding war for Think with Alceon Private Equity. The two companies have been making offers for the childcare provider since November 2020. The Think share price has been rising with each offer.

For context, the first offer from Alceon was for $1.35 a share. Busy Bees followed this up with an offer of $1.75 a share.

After today’s offer, Think is offering Busy Bees an exclusivity period to negotiate a deal until 14 May 2021.

If a deal were to go through it would be subject to several conditions, including:

• Due diligence requirements.
• Obtaining regulatory approval.
• The consent of Busy Bees’ owner Mathew Edwards.
• The signing of documents, and
• Approval by the Think Board.

 

Alceon backing down?

Alceon already owns approximately 19% of Think through its subsidiary, NKT Investments Pty Ltd. As such, it has a powerful say on whether or not to accept any deal from Busy Bees.

Think, however, says that after communicating with Alceon, the private equity firm is prepared to support the Busy Bees offer. If that is the case, the Think share price should begin to stabilise.

Think share price snapshot

Over the last 12-months, the Think share price has increased 246.07%. Of course, the vast majority of the company’s growing valuation has come as a result of the takeover talks.

Given its current share price, Think has a market capitalisation of $187.6 million.

More reading

• Why the Cleanaway (ASX:CWY) share price is soaring 9% today
• House prices flying, fixing your home loan, and where to find a job
• Here’s why the NRW (ASX:NWH) share price is edging higher today
• ASX 200 up 0.9%: Cleanaway jumps, tech shares rise, Incitec Pivot sinks
• Why the Los Cerros (ASX:LCL) share price is rocketing 20% today

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.

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Weekend Sunrise on Sunday to look ahead to the RBA’s next rates call, and talked about fixing your home loan, plus the surprising news on where Australian jobs are being created.

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• How housing policy and retiree wealth are shifting the super conversation
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• Why the AnteoTech (ASX:ADO) share price is surging 15% today

Motley Fool contributor Scott Phillips 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 NRW Holdings Limited (ASX: NWH) share price is edging higher after announcing its subsidiary has been awarded a letter of intent (LOI). At the time of writing, diversified service provider’s shares are fetching $2.10, up 2.4%.

What did NRW announce?

Investors appear pleased with the company’s latest update, sending the NRW share price higher in mid-morning trade.

According to its release, NRW advised that its wholly-owned subsidiary, Primero Group, has executed a letter of intent (LOI) with Panoramic Resources Limited. The agreement will see Primero conduct a number of works. These will fall under an operations and maintenance contract at the Savannah Nickel project. This will also include servicing and ensuring the smooth running of the mine’s processing and surface infrastructure facilities.

The contract will be valid for an initial period of 3 years, with a possible 2-year renewal option. Additionally, it is expected that the new deal will generate $35 million in revenue for Primero.

NRW highlighted that Primero has been successfully expanding its business in the base and battery metals sectors. It anticipates that new pipeline opportunities in the operations and maintenance space could see it grow further.

NRW CEO, Jules Pemberton, commented:

This agreement further strengthens the annuity revenue stream that our Minerals, Energy and Technology division has been building through its various businesses.

RCR and its product support and maintenance business, DIAB through its shutdown and maintenance activities and now this significant award to Primero for a three year plus two-year option delivering operations and maintenance services to the Savannah Nickel Project.

Share price review

Over the past 12 months, the NRW share price has risen over 30%, but fallen around the same value year-to-date. The company’s shares started the year strongly, before fading away when reporting season came in February.

At the current share price, NRW commands a market capitalisation of about $958 million, with 456.3 million shares on issue.

More reading

• NRW (ASX:NWH) share price sinks despite new contract win
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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 Here’s why the NRW (ASX:NWH) share price is edging higher today appeared first on The Motley Fool Australia.

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a very strong gain. The benchmark index is currently up 0.9% to 6,890.7 points.

Here’s what has been happening on the market today:

Cleanaway share price jumps on acquisition news

The Cleanaway Waste Management Ltd (ASX: CWY) share price is jumping notably higher today after announcing an agreement to acquire Suez R&R Australia for $2.52 billion. Management expects the acquisition of the recycling and recovery business to provide additional scale and scope to create further operating leverage and multiple avenues to accelerate growth. In addition to this, Cleanaway expects the acquisition to be significantly accretive to earnings post synergies.

Tech shares rebound

It has been a very positive day for the Australian tech sector. The likes of Afterpay Ltd (ASX: APT) and Zip Co Limited (ASX: Z1P) are just two of a number of tech shares storming higher today. This follows a positive end to the week on Wall Street and an even more positive start to the week on Monday night. This has led to the S&P ASX All Technology Index (ASX: XTX) rising 3.5% so far today.

Job ads hit 12-year high

The Australian economy is bouncing back strongly from the pandemic judging by the latest job ads data. According to Australia and New Zealand Banking GrpLtd (ASX: ANZ) data, Australian Job Ads rose 7.4% month on month in March. This follows an upwardly-revised 8.8% month on month increase in February. The bank notes that ANZ Job Ads are now at the highest level since November 2008 and pointing to further sharp declines in the unemployment rate. The SEEK Limited (ASX: SEK) share price is up 3.5% at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Cleanaway share price with a 10% gain following its acquisition announcement. The worst performer has been the Incitec Pivot Ltd (ASX: IPL) share price with a 9% decline. This follows news that the Waggaman operation is expected to recommence production later than previously expected, impacting its earnings.

More reading

• Why the Incitec Pivot (ASX:IPL) share price tumbled 10% this morning
• Why the Regis Resources (ASX:RRL) share price is in focus
• Why Afterpay, Codan, Cleanaway, & Webjet shares are surging higher
• Why the Vocus (ASX:VOC) share price is surging this year
• Why the Chorus (ASX:CNU) share price is on watch

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended SEEK 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 Los Cerros Ltd (ASX: LCL) share price is off to the races today, up 20% at time of writing.

Below we take a look at the ASX resource share’s latest gold drilling results.

What gold drilling results did Los Cerros report?

The Los Cerros share price is soaring after the company reported high-grade gold drilling results at its 100% owned Quinchia Gold Project in Colombia.

According to the release, the Tesorito South diamond drill hole (TS-DH16) delivered an intercept of 460.9 metres at 1.11grams per tonne of gold from the surface. The company reported a broader intercept of 582.3m @ 0.94g/t Au from surface, easily its best drill results so far.

Los Cerros reported there is “significant potential for higher grade envelopes extending at depth to south west”, with porphyry mineralisation south-west of the fault raising “exciting questions at regional level”.

Commenting on the latest drill results Los Cerros Managing Director, Jason Stirbinskis said:

On a gram/metre basis TS-DH16 is the best hole ever recorded in the entire Quinchia district and has raised exciting questions about the potential scale of this gold system. The near surface (first 411m of this hole) has expanded to the south-west the modelled gold envelopes described by the high grade intercepts reported in the TS-DH02, ’14, ’11, ’15 drill fence and mineralisation still remains open to the south west.

Follow-up drilling will further explore this region of relatively sparse data. The company will offer further detail on interpretation of the porphyry suite intercepted below and south-west of the fault in coming weeks as we assimilate new drill data as it arrives.

Los Cerros is awaiting the assays for 4 other completed drill holes at Tesorito South. In the meantime, drilling continues at the Quinchia Project, with 2 diamond rigs at Tesorito South and 1 diamond rig at the company’s Chuscal prospect.

Los Cerros share price snapshot

If you bought Los Cerros shares 12 months ago, you won’t be complaining today. Over the past full year the Los Cerros share price has gained a whopping 780%. That compares to a gain of 34% on the All Ordinaries Index (ASX: XAO).

Year-to-date, the Los Cerros share price is up 35%.

More reading

• The IOUpay (ASX:IOU) share price is lifting today. Here’s why
• Why the Incitec Pivot (ASX:IPL) share price tumbled 10% this morning
• Why the Regis Resources (ASX:RRL) share price is in focus
• Brokers name 3 ASX shares to buy today
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Motley Fool contributor Bernd Struben 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 IOUpay Limited (ASX: IOU) share price is lifting today after the company shared news of its latest agreement. IOUpay will partner with MYP1 Commerce to connect users of MYP1’s Smart point of sale (POS) system with IOUpay’s buy now pay later (BNPL) platform.

Today’s news comes at a good time for the IOUpay share price, which slumped last month. Its year to date gain fell from 205% at the end of February to 102.5% at the time of writing. Currently, its shares are up 3.9%, trading at 40 cents.

Let’s look closer at the BNPL provider’s new partnership.

IOUpay’s new POS integrated service

IOUpay has signed a strategic teaming agreement with MYP1 for a renewable year-long term within which MYP1 will integrate IOUpay into its Smart POS system, allowing merchants and customers to use the BNPL service seamlessly.

MYP1 is chiefly a provider of POS and payment systems in Malaysia and Southeast Asia. More than 15,000 merchants across Malaysia use MYP1-owned and maintained Smart POS systems.

Under the agreement, MYP1 will refer its merchants to IOUpay’s services, which will be integrated into MYP1’s Smart POS system.

The integration of IOUpay into MYP1’s Smart POS systems will allow contactless BNPL payments. IOUpay believes this will make it the preferred BNPL service for merchants.

The announcement stated most users of MYP1’s Smart POS systems were in-store merchants. Thus, the partnership won’t see its BNPL services extend significantly into the e-commerce field.

The integration of IOUpay’s service and MYP1’s Smart POS system will begin this month. It will initially be rolled out to 2,800 select merchants. Both companies plan to roll out IOUpay integrated Smart POS systems to all merchants using MYP1’s system in 2022.

Commentary from management

IOUpay CEO Khong Kok Loong welcomed the partnership, saying:

MYP1 represents a unique opportunity to fast track our market penetration across large numbers of qualified merchants seamlessly by our BNPL payment services now being offered as the major payment alternative to cards and e-wallets through MYP1’s existing merchants and Smart POS terminal installation base.

We see this as a mutually beneficial partnership to drive BNPL transaction volumes and smart POS terminal installations and build a highly active and loyal merchant network.

MYP1 CEO Chris Lee added:

We know the team at IOU well and believe their buy now, pay later platform offering will be well received by our merchants and their customers.

IOU’s BNPL service offering comes at a time when merchants and consumers are all moving to contactless payments so we are excited to see a whole new BNPL driven boost to payment volumes across our merchant networks from this partnership.

IOUpay share price snapshot

The past month has been challenging for the IOUpay share price. However, the past 12 months have provided a good amount of cushioning from volatility, with the company’s share price up an extraordinary 3,950% over that period.

IOUpay has a market capitalisation of around $212 million, with approximately 551 million shares outstanding.

More reading

• Why the IOUpay (ASX: IOU) share price tumbled 40% in March 
• Down 20% with no news, what’s with the Cirralto (ASX:CRO) share price?
• ASX tech shares cowering in shadow of NASDAQ bear market warning
• ASX 200 unmoved, Flight Centre soars, Afterpay keeps falling
• IOUpay and Zip were among the most traded ASX shares last week

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.

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The Incitec Pivot Ltd (ASX: IPL) share price is tumbling lower in early trade after an update on the Waggaman Ammonia Plant. At the time of writing, the Incitec share price is trading at $2.68, down 8.22%. 

Why is the Incitec Pivot share price under pressure?

Shares in the Aussie explosives, industrial chemicals, and fertiliser manufacturer are currently the worst performing amongst the S&P/ASX 200 Index (ASX: XJO).

The big catalyst was an update from its Waggaman ammonia plant. On 15 February 2021, Incitec expected to recommence operations at the plant by mid-March. This was after the first planned turnaround since commissioning the plant in 2016.

After mechanical completion of the turnaround on 6 March, Incitec shutdown the plant on 17 March following a dry gas seal failure and vibrations in the turbine.

Incitec said further investigations are underway into the root causes of both issues and repairs are also underway. Incitec now expects production to recommence at Waggaman by mid-April.

The update has seen investors push the Incitec Pivot share price lower, tumbling nearly 10 per cent in early trade. Incitec said there would be further adverse impact due to the delays.

The Aussie manufacturer is expecting an earnings before interest and tax (EBIT) impact of $36 million in FY2021. On a net profit after-tax basis, the total impact is $28 million per today’s release.

Incitec will depreciate the finalised $80 million turnaround cost over a four-year period. That depreciation impact has been incorporated in the FY2021 earnings updates.

Those numbers have put the Incitec Pivot share price under pressure as the S&P/ASX 200 Index climbs higher today. The benchmark Aussie index has gained nearly 1 per cent today in a strong return to trade after Easter.

Corporate Travel Management Ltd and Chorus Ltd (ASX: CNU) are among the other ASX 200 shares to fall in today’s trade.  Cleanaway Waste Management Ltd (ASX: CWY) was leading the gainers as at the time of writing.

More reading

• Why the Regis Resources (ASX:RRL) share price is in focus
• Why the Vocus (ASX:VOC) share price is surging this year
• Why the Chorus (ASX:CNU) share price is on watch
• UBS is calling time on the ASX iron ore supercycle
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management 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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