• ASX 200 rises, EML up, Ansell announces CEO

    The S&P/ASX 200 Index (ASX: XJO) went up by 0.15% to 7,293 points.

    These are some of the highlights from the ASX:

    EML Payments Ltd (ASX: EML)

    The EML share price went up around 6% today after yesterday’s update about trading conditions and the ongoing regulatory issue with the Central Bank of Ireland.

    In terms of the trading update, EML said that in the nine months to March 2021, gross debit volume (GDV) was up 52% to $14.9 billion and revenue was higher by 65% to $143.5 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) was higher by 62% to $43.8 million in the first nine months of FY21.

    Looking at the individual segments, in the general purpose reloadable, EML has launched with Mastercard in New Zealand. In the gift and incentive segment, it’s benefiting as UK shopping centres reopen. US malls are also seeing improved volumes, though parts of Canada and Europe are still in lockdown. In the virtual account numbers (VANS) segment, both Australia and Europe have contributed to GDV with the launch of new programs in the BNPL and line of credit verticals.

    Regarding CBI, the ASX 200 share said that it remains in an ongoing dialogue with the CBI in relation to the concerns. There is no timeframe for the CBI to finalise its considerations of the matter.

    EML said it’s continuing to focus on EML’s “strong” pipeline of new customers and support existing customers.

    It said the financial impacts can’t be fully determined for FY22.

    Ansell Limited (ASX: ANN)

    The Ansell share price dropped around 0.5% today after announcing who its new CEO will be.

    The ASX 200 company announced today the appointment of Neil Salmon as managing director and CEO effective from 1 September 2021.

    This came after the announced retirement of Magnus Nicolin and a comprehensive internal and external search for a successor.

    Mr Salmon joined Ansell in 2013 as the chief financial officer and was appointed as president of Ansell’s industrial GBU in 2019.

    CEO-elect Neil Salmon said he was honoured to have been selected to lead Ansell:

    It is a considerable responsibility to lead Ansell at this time of enormous need for our personal protection products worldwide. I thank the board for the opportunity to build on Ansell’s success and I acknowledge the outstanding leadership of Magnus Nicolin in taking the company so far.

    Mr Salmon will receive a base annual salary of €715,000 as well as short-term and long-term incentives.

    Superloop Ltd (ASX: SLC)

    The Superloop share price was unmoved today after the business announced that it’s going to acquire Exetel Pty Ltd, Australia’s largest independent internet service provider for $110 million, comprising $100 million in a cash consideration and $10 million in Superloop shares.

    Superloop said the acquisition will accelerate the utilisation of the company’s infrastructure assets through acquisition of Exetel’s consumer and business customers, which amount to more than 110,000.

    The business has estimated the cost synergies will be around $5 million per annum, which is related to the increased Superloop network utilisation, with all synergies expected to be realised within the first 12 months.

    Superloop said the acquisition will be materially accretive for earnings per share (EPS), EBITDA and free cashflow on a FY21 pro forma basis.

    The cash element of the deal will be funded by a $100 million capital raising.

    Superloop is now expecting FY21 EBITDA, excluding one-off transaction costs, to be in a range of $18 million to $18.5 million.

    The post ASX 200 rises, EML up, Ansell announces CEO appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

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    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EML Payments and SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • 2 quality ASX dividend shares with big yields

    Hand drawing growing Dividends investment business graph with blue marker on transparent wipe board.

    If you’re on the lookout for dividend options, then you might want to take a look at the ones listed below.

    Both of these shares are expected to provide investors with big yields in the near future. Here’s why they have been tipped as buys for income investors:

    Stockland Corporation Ltd (ASX: SGP)

    The first ASX dividend share to look at is Stockland. It is a property company which owns, manages and develops a diverse range of property assets. These include retirement villages, retail centres, business parks, offices, and logistics centres.

    Although its shares have been strong performers this year, they are still expected to provide investors with a generous distribution yield in the near term.

    For example, according to a note out of Morgan Stanley, its analysts are forecasting distributions of 25.1 cents per share in FY 2021 and then 27.8 cents per share in FY 2022. Based on the current Stockland share price of $4.80, this will mean yields of 5.2% and 5.8%, respectively.

    Morgan Stanley currently has an overweight rating and $5.00 price target on its shares.

    Sydney Airport Holdings Pty Ltd (ASX: SYD)

    Another ASX dividend share to look at is Sydney Airport.

    With Australia slowly returning to normal, Sydney Airport has been experiencing a notable recovery in domestic passenger numbers. And while international tourism is still some way off, the global vaccine rollout brings it closer every day. This bodes well for Sydney Airport traffic next year and ultimately its income and dividends.

    Goldman Sachs is forecasting dividends of 8.8 cents per share in FY 2021 and then 27.1 cents per share in FY 2022. Based on the current Sydney Airport share price of $6.06, this will mean yields of 1.5% and 4.5%, respectively.

    The broker currently has a buy rating and $6.73 price target on its shares.

    The post 2 quality ASX dividend shares with big yields appeared first on The Motley Fool Australia.

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  • These 3 ASX 200 shares were among the biggest movers today

    stock market news, person checks phone in front of electronic stock exchange boad

    The S&P/ASX 200 Index (ASX: XJO) had a rather flat day today. The index finished up 0.15% at 7,292 points, well under its new all-time high of 7,315 points that we saw this morning.

    Let’s take a look at which ASX 200 shares were among the most heavily traded today.

    3 ASX 200 shares on the move today

    Origin Energy Ltd (ASX: ORG)

    The Origin share price climbed higher today, up 1.89% to $4.86 per share at the close of trade. The energy retailer and generator is now up a hefty 21.5% since the start of June. This may be a result of some positive broker activity recently, which we covered here.

    A total of 9.60 million Origin shares changed hands today, making it one of the most traded ASX shares of the day.

    Scentre Group (ASX: SCG)

    Scentre is another ASX 200 share that experienced heavy trading today. Scentre shares ended the day up a healthy 2.51% at $2.86 per share. Scentre is also up 5% in the past week.

    Again, there isn’t much in the way of official news or announcements out of Scentre today. But, like Origin, this real estate investment trust (REIT) has also recently benefitted from some broker love. That might have helped today’s rise, which saw 16.45 million shares swapping hands.

    Imugene Limited (ASX: IMU)

    ASX healthcare company Imugene was one of the most heavily traded ASX 200 shares on the market today, with a massive 68.53 million shares moving around. That is possibly the result of Imugene’s sizeable 14.87% fall today to 31.5 cents a share.

    There doesn’t seem to be an obvious catalyst for this hefty move today. But it is worth noting the company did run up 370% between 10 March and 26 May this year. It was also up more than 80% between 10 May and 26 May. With no other news, could it be simply some profit-taking going on here?

    The post These 3 ASX 200 shares were among the biggest movers today appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

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    Motley Fool contributor Sebastian Bowen 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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  • Bitcoin slammed as “least favourite asset for investment”

    Bitcoin cryptocurrency coins bounce around on a black background, indicating a volatile price

    The Bitcoin (CRYTPO: BTC) price is in freefall.

    One Bitcoin is currently trading for US$32,901 (AU$42,727). That’s down 9.4% over the past 24 hours.

    It also trims Bitcoin’s year-to-date gains down to a fairly meagre 13.8%.

    Don’t get me wrong. A 13.8% return in under 6 months would be stellar from any blue-chip ASX share. But with the notorious volatility inherent across all cryptocurrencies, some investors may be thinking the risk isn’t worth the potential gains.

    As Bitcoin’s price has crumbled from April’s all-time highs of US$64,829, so to has its market cap. This now stands at US$615 billion, down from some US$1.1 trillion at its peak.

    Least favourite asset for investment

    Bitcoin has been receiving a lot more institutional investor interest this year. But not all professional investors are keen to add it to their portfolios.

    eToro’s crypto expert Simon Peters noted that May was the worst month on record for Bitcoin’s price performance. He added that “caution remains the watchword for bitcoin in particular after a sell-off sparked by a crackdown in China on trading, as well as a bout of profit-taking”.

    Peters also pointed to a note from Goldman Sachs, indicating the CIOs of various funds are less than enthralled with the world’s largest crypto:

    Professional investors remain concerned about the near-term outlook. A note from Goldman Sachs said their meetings with 25 chief investment officers of long-only and hedge funds revealed bitcoin as the least favourite asset for investment.

    Which isn’t to say some investors haven’t made a mint trading the digital token. According to Peters, “Asset manager Ruffer has made more than $1 billion in profit from a $600 million Bitcoin investment it made during November 2020.”

    Ruffer closed out its Bitcoin position in April banking US$1.1 billion in profit.

    Most cryptos spiralling lower…but not all

    It’s not just Bitcoin falling hard today.

    The vast majority of the top-100 cryptocurrencies are spiralling lower.

    Ethereum (CRYPTO: ETH) is down 11% over the past 24 hours. And the much-hyped Dogecoin (CRYPTO: DOGE) has shed 15%, according to data from CoinMarketCap.

    But there is an outlier. The sole crypto in the top 100 (by market cap) to be up more than a fraction of a percent today is Theta Fuel (CRYPTO: TFUEL). Theta is up more than 10% over the past 24 hours.

    And it’s not just today. Yesterday I singled out Theta as the past week’s top performing crypto. A spot it still holds onto today

    Over 7 days Theta is up 46%, compared to an 11% loss for Bitcoin at the same time.

    Invest with care!

    The post Bitcoin slammed as “least favourite asset for investment” appeared first on The Motley Fool Australia.

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    The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. Bernd Struben 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 (ASX:IOU) share price is up 4,000% in the past year

    A happy shopper with lots of bright shopping bags, indicating a positive surge for ASX retail share price

    The Ioupay Ltd (ASX: IOU) share price was having a reasonable day on the markets until it dropped into the red in the closing few minutes of trading. Ioupay shares closed 1.6% lower at 30.55 cents a share. That compares to the S&P/ASX 200 Index (ASX: XJO), which is up 0.15%.

    But if we zoom out a little, Ioupay’s performance starts to make the ASX 200 look a little impotent by comparison. For starters, the Ioupay share price is up 5% over just the past week. Year to date, investors have enjoyed gains of 87%. And over the past 12 months, Ioupay shares are up a staggering 4,257%.

    That would turn a $1,000 investment into approximately $42,570. That comes from the minuscule share price of half a cent that Ioupay was trading for around this time last year.

    However, there’s one more, and far larger, number to keep in mind. If you have been following this relatively new ASX buy now, pay later (BNPL) share for a while, you might remember it had a spectacular run back in February.

    Between 9 February and 15 February, the Ioupay share price climbed a massive 256% and went as high as 85 cents. That puts the gains that Ioupay enjoyed between 9 June 2020 and 15 February 2021 at more than 8,000%.

    But it’s not all good news for investors. Anyone who bought in at those February peaks would currently be down more than 61% on their investment.

    So what’s new over at Ioupay?

    Well, not a whole lot, at least recently. The company has made no new announcements or released any news since 14 May. However, the company did have a positive announcement earlier that month.

    As we covered at the time, Ioupay announced on 5 May that it had inked a deal with the Southeast Asian payments company RMS Reloads. This deal will allow Ioupay customers to use BNPL payments over RMS Reloads’ 10,000 strong merchant network across Malaysia. This announcement sent Ioupay shares up as high as 9% when it was made public.

    At its current share price, Ioupay has a market capitalisation of around $173 million and a price-to-earnings (P/E) ratio of 65.7.

    The post The IOUpay (ASX:IOU) share price is up 4,000% in the past year appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

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    Motley Fool contributor Sebastian Bowen 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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  • Why the WiseTech (ASX:WTC) share price stormed 6% higher today

    A businessman points to and arrow going up on a graph, indicating a share price rise for an ASX company

    The WiseTech Global Ltd (ASX: WTC) share price was among the best performers on the S&P/ASX 200 Index (ASX: XJO) on Tuesday.

    The logistics solutions platform provider’s shares ended the day 6% higher at $31.15.

    Why did the WiseTech share price zoom higher?

    Investors were buying WiseTech’s shares on Tuesday following the release of a positive broker note out of Macquarie Group Ltd (ASX: WTC).

    According to the note, the broker has retained its buy rating and $34.00 price target on the company’s shares.

    Based on the latest WiseTech share price, this implies potential upside of over 9% even after taking into account today’s gain.

    What did Macquarie say?

    Macquarie has been reviewing its expectations for FY 2021 and believes WiseTech is well-placed to outperform its guidance. This is despite softer container volumes during the month of April.

    WiseTech’s FY 2021 guidance is for revenue of $470 million to $510 million (up 9% to 19%) and EBITDA of $165 million to $190 million (up 30% to 50%). Macquarie feels the company can beat this and deliver a result ahead of the market consensus.

    Is anyone else positive on WiseTech?

    Macquarie isn’t the only broker that is positive on WiseTech. Morgan Stanley recently put an overweight rating and $35.00 price target on the company’s shares.

    While WiseTech may have paused its acquisition strategy, it believes the market is underestimating the upside to WiseTech’s revenues from its freight forwarder customers growing via their own M&A activities.

    Morgan Stanley notes that DSV’s recent acquisition of Agility Global Integrated Logistics could lead to more users for WiseTech and higher transaction modules.

    Elsewhere, Bell Potter currently has a hold rating and $31.50 price target on its shares. Though, it also acknowledges that there is upside risk to the company’s guidance.

    Bell Potter also highlights that WiseTech’s CEO has been selling shares. It sees this as a positive, as it does not believe he would be selling if its result was going to fall short of expectations.

    The post Why the WiseTech (ASX:WTC) share price stormed 6% higher today appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

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    James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and WiseTech Global. 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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  • Here are the US shares ASX investors were buying last week

    A businesman's hands surround a circular graphic with a United States flag and dollar signs, indicating buying and selling US shares

    Most weeks, Commonwealth Bank of Australia (ASX: CBA)’s CommSec share trading platform tells us the most popular international shares (usually just US shares) that its Australian customer base was looking at the previous week.

    CommSec is one of the largest share trading platforms on the ASX. Because of this, its data can give us a window into what is interesting to Aussie investors on the US markets right now.

    My Fool colleague James Mickleboro has already covered some CommSec’s ASX’s most popular shares today. So here are the top 10 international shares that CommSec users were buying and selling last week. This week’s data covers 31 May to 4 June.

    AMC and ‘meme stocks’ still dominate ASX investors attention

    1. AMC Entertainment Holdings Inc (NYSE: AMC) – representing 10.2% of total trades with a 66%/34% buy-to-sell ratio.
    2. GameStop Corp. (NYSE: GME) – representing 4.7% of total trades with a 78%/22% buy-to-sell ratio.
    3. Tesla Inc (NASDAQ: TSLA) – representing 4.6% of total trades with a 72%/28% buy-to-sell ratio.
    4. BlackBerry Ltd (NYSE: BB) – representing 1.3% of total trades with a 72%/28% buy-to-sell ratio.
    5. Apple Inc (NASDAQ: AAPL) – representing 2.6% of total trades with a 76%/24% buy-to-sell ratio.
    6. Nio Inc. (NYSE: NIO)
    7. Palantir Technologies Inc (NYSE: PLTR)
    8. Sundial Growers Inc (NASDAQ: SNDL)
    9. Microsoft Corporation (NASDAQ: MSFT)
    10. Alibaba Group Holding Ltd (NYSE: BABA)

    What can we learn from these trades?

    Last week, we discussed how cinema chain AMC had finally displaced the long-running king of this pile – Tesla. Well, ASX investors seemed to have doubled down on that change. AMC shares dominated ASX investors’ attention last week, representing a whopping 10.2% of all US share trades. For comparison, last week, AC made up 6.2% of all trades.

    AMC is the latest so-called ‘meme stocks’, delivering a massive 544% gain between 3 May and 2 June. Since 66% of trades last week were buys, we can possibly assume that many investors think that this run isn’t over yet.

    In other news, another meme stock in BlackBerry (yes, the BlackBerry phone maker) also burst onto ASX investors’ minds last week. BlackBerry spiked in value back in February amid the first GameStop saga. But it’s also been resurging lately with an 83.6% gain since 25 May. We saw an even stronger buying bias with this one, so again, we can probably assume there are still some ASX investors attempting to jump on this rain

    Other than that, we see many familiar faces this week. GameStop and Tesla both remain popular, as does Apple and Chinese Tesla-rival Nio. A newcomer though is Canadian cannabis stock, Sundial Growers. According to our US Fool colleagues, Sundial is yet another candidate for the latest meme stock. Its shares rose almost 80% between 24 May and 3 June. It seems ASX investors have followed their International counterparts in chasing this cannabis company higher.

    The post Here are the US shares ASX investors were buying last week appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

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    Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Apple, Microsoft, NIO Inc., Palantir Technologies Inc., and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 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.

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  • Takeovers, credit cards and an AAA credit rating confirmation. Motley Fool CIO Scott Phillips on Nine’s Late News

    Stack of Credit Cards

    Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Monday night to discuss the economic news of the day, including two big takeover offers — Hansen Technologies Limited (ASX: HSN) and Altium Limited (ASX: ALU) — Australian credit card spending, and the decision by Standard & Poors to lift our national credit rating outlook from ‘negative’ to ‘stable’.

    The post Takeovers, credit cards and an AAA credit rating confirmation. Motley Fool CIO Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

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    Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Hansen Technologies. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool Australia has recommended Hansen Technologies. 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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  • Evolve (ASX:EVO) share price dips lower on trading update

    children and teacher in childcare education setting

    The Evolve Education Group Ltd (ASX: EVO) share price dipped lower today. This follows the childcare company’s trading update and earnings guidance for FY21 and FY22.

    At today’s market close, the Evolve share price finished at 83 cents, down by 2.92%.

    Trading update

    In today’s release, Evolve announced it’s achieved a mixed performance across its Australian and New Zealand markets.

    For the week ending 23 May, Evolve said its Australian operations were robust. New South Wales and Victoria achieved occupancy rates of 87.8%, with more than 80% in Queensland. The company explained that’s a positive result given the business usually records a better performance in the second half.

    Across the Tasman, New Zealand has failed to increase occupancy rates post COVID-19. Over the same time period, occupancy rates in NZ stood at roughly 70%.

    Evolve has blamed teacher shortages for the performance due to the lengthy international border closures. It said the entire Early Childhood Education (ECE) sector had been affected but it believed this would self-correct when borders re-opened.

    Currently, Evolve operates 115 early education centres in New Zealand and 20 in Australia.

    On a positive note, the company expects to continue achieving material cost savings through streamlining its centre-based and support office costs.

    Evolve declared a cash balance of around NZ$48 million (A$44.7 million) at the end of May.

    Guidance for FY21 and FY22

    Looking ahead, Evolve provided an earnings guidance based on current market conditions in Australia and New Zealand.

    For the year ending 31 December 2021 (FY21), Evolve expects underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be between NZ$16 million (A$14.9 million) and NZ$18.5 million (A$17.2 million).

    In the year ahead, ending 31 December 2022 (FY22), EBITDA is forecast to be around NZ$23 million (A$21.4 million) and NZ$25 million (A$23.2 million).

    Evolve share price summary

    It’s been a disappointing 12 months for Evolve investors, with the company’s shares down slightly on this time last year. When comparing year to date performance, the Evolve share price has fallen by more than 30%.

    Evolve has a market capitalisation of roughly $140 million, with approximately 159.5 million shares on its registry.

    The post Evolve (ASX:EVO) share price dips lower on trading update appeared first on The Motley Fool Australia.

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    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of May 24th 2021

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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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  • Boral (ASX:BLD) share price among the ASX 200’s top performers of 2021

    three builders in hard hats on work site looking happy

    Boral Limited (ASX: BLD) is among the 10 best performers of the S&P/ASX 200 Index (ASX: XJO) so far this year. At the time of writing, the Boral share price is $6.85.

    Despite having a bad day on the ASX today – it’s currently down 1.01% – the Boral share price has gained 37.8% since the start of 2021.

    Let’s look at what the company has been up to for the first half of the year.

    2021 so far for Boral

    Boral’s half-year results

    The first time we heard from Boral this year was in February, when the company released its results for the first half of the 2021 financial year.

    On the day of its results being shared, the Boral share price ended the day 1.9% lower than its previous close.

    The six months ended 30 December 2020 saw Boral Australia’s revenue fall by 8%. In the same time period, Boral North America experienced a 9% revenue decline. Further weighing on its share price that day was the company’s decision to not offer its investors a dividend.

    Joint venture sale and on-market buy-back

    On 1 April, Boral announced it was to sell its share in the USG Boral joint venture and commence an on-market share buy-back.

    The sale expected to see Boral walking away with around $300 million less debt and $1 billion to reinvest in the business and to return to its shareholders.  

    The on-market buy-back would see Boral purchasing up to 10% of its outstanding shares over a 12-month period. The share buy-back began on 20 April.

    The news boosted the Boral share price to close 6.7% higher that day.

    Also in April was Boral’s announcement of potential changes to the management of its North American fly ash business. These changes could involve Boral entering into a joint venture, a strategic alliance, divesting the business to a third party, or continuing its ownership unchanged. News of the potential business changes boosted the company’s shares to close 0.5% higher.

    Takeover bid

    Finally, on 10 May, Seven Group Holdings Ltd (ASX: SVW) proposed to acquire all of Boral’s shares for $6.50 apiece.

    The proposed price was a nil-premium on the Boral share price’s previous close. It valued Boral at around $8 million.

    At the time, The Motley Fool Australia reported the offer was likely an attempt to evade ‘creep rules’. In this instance, creep rules meant the group couldn’t increase its holdings in Boral without making a takeover offer.

    Seven Group claimed it would have been happy to increase its holdings in Boral from 23.2% to 30%.

    Boral recommended its shareholders reject the bid the day after Seven Group offered it.

    Over the 2 days the bid was in motion, the Boral share price gained 4.6%.

    Boral share price snapshot

    It goes without saying that, so far, 2021 has been a good year for the Boral share price.

    Additionally, the last 12 months have seen it gain an impressive 79%.

    However, while Boral’s performance this year has been great, it’s a long way off being the top ASX 200 performer in 2021.

    Currently, Virgin Money UK CDI (ASX: VUK) is leading the ASX 200, having gained 62% since the start of 2021. In second place by a slither is Codan Limited (ASX: CDA), which has gained 61% in the same time frame.

    The post Boral (ASX:BLD) share price among the ASX 200’s top performers of 2021 appeared first on The Motley Fool Australia.

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    Motley Fool contributor Brooke Cooper 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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