When you think of ASX resource shares, the likes of S&P/ASX 200 Index (ASX: XJO) mining giants Fortescue Metals Group Ltd (ASX: FMG) and BHP Group Ltd (ASX: BHP) probably spring to mind.

Or perhaps the host of ASX gold shares trading on the index.

But Australia is rich not just in hard commodities like iron ore and gold. The lucky country also has a great wealth in its expansive farmlands. With a number of quality ASX agricultural shares investors can consider.

And, according to the latest report from the ANREV Australian Farmland Index, the fourth quarter 2020 returns for managed investments in Aussie farmlands came in strong, despite the ongoing global pandemic. Which could provide some welcome tailwinds for ASX agriculture shares.

28% returns from annual farmland

ANREV’s index tracks some $1.1 billion worth of agricultural assets, including farming assets held by Rural Funds Group (ASX: RFF)

As Institutional Real Estate Inc reports, the quarterly performance of annual farmland, “which includes broadacre grain and oilseed farming and livestock grazing” had its best returns since ANREV launched the index.

The annualised returns on the grazing and annual cropland came in at an impressive 28.37%, with 13.34% coming from increased income and 15.03% from capital growth.

The ANREV report credited rising beef cattle prices and an above-average winter crop harvest in the eastern states for much of the increased returns.

Amélie Delaunay, director of research and professional standards at ANREV said, “In the face of the unprecedented turmoil of 2020, investments in Australian farmland showed remarkable resilience compared to other asset classes.”

A leading ASX agricultural share

As mentioned above there are a number of quality agricultural shares trading on the All Ordinaries Index (ASX: XAO).

Rural Funds Group, whose assets make up part of the ANREV index, counts among those.

Rural Funds holds and leases agricultural property and equipment. Its agricultural holdings include cattle, vineyards and cropping. As far as its leases go, the company is well-positioned with an average weighted lease expiry (WALE) of 11.1 years.

Rural Funds has a market cap of $801 million and is well-known among ASX dividend investors for a lengthy track record of regular and growing dividends. At the current share price Rural Funds pays an annual dividend yield of just over 4.6%, unfranked.

The Rural Funds share price, down 2% today, is up 24% over the past 12 months.

More reading

• 2 ASX dividend shares to buy in April
• Leading brokers name 3 ASX shares to buy today
• Why the South32 (ASX:S32) share price is outperforming today
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• How much is the Fortescue (ASX:FMG) dividend worth today?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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A number of ASX dividend shares could be good ideas to own for income.

It’s a tough environment for income-focused investors right now with how close to 0% the official interest rate is at the moment.

But there are still some businesses that could represent good value, growth and offer a solid starting yield:

Rural Funds Group (ASX: RFF)

Rural Funds currently has a forward distribution yield of 5% for FY22 after management confirmed that the real estate investment trust (REIT) distribution would rise by 4% again.

That’s actually the aim of the farmland landlord – to grow the distribution by 4% each year.

It owns a number of different farm types including almonds, macadamias, vineyards, cattle and cropping (sugar and cotton). However, Rural Funds plans to turn the sugar properties into macadamia to generate more earnings in the future.

A key part of the growth is the rental indexation that is built into its contracts with tenants like JBS and Olam. The increases are either a fixed 2.5% annual increase, or it’s linked to CPI inflation.

Rural Funds also has a strategy where it invests some of its retained profit each year into productivity improvements, further increasing the capital value and rental potential of those farms. It has been focusing on cattle farm improvements in recent years.

It was one of the few REITs to increase the distribution during FY20 despite all of the impacts of COVID-19.

Rural Funds’ farms are spread across a variety of states and climactic conditions, which means it has a diversified portfolio.

Kogan.com Ltd (ASX: KGN)

Kogan.com currently has a trailing grossed-up dividend yield of 3.3%. According to Commsec, Kogan.com could pay an annual dividend per share of $0.49 per share in FY23. This would translate to a grossed-up dividend yield of 5.5% at the current Kogan.com share price.

The e-commerce business has been growing its dividend for the last few years since it started paying one.

In the FY21 half-year result, the board grew the interim dividend by 113.3% to 16 cents per share, which is a big increase for an ASX dividend share. That was after an increase of the adjusted earnings per share (EPS) of 211.7% to $0.35 per share, whilst statutory EPS was 135.1% higher to $0.20.

That means that the Kogan.com interim dividend represented a dividend payout ratio of 80%, leaving plenty of profit for re-investment back into more growth for the business.

Kogan.com is growing various parts of its business at a fast rate. Its exclusive brands and marketplace businesses are increasing in size at a very fast pace at the moment.

One area that Kogan.com is looking to for more growth is New Zealand after its Mighty Ape acquisition. Mighty Ape now has 719,000 active customers and December 2020 trading showed “strong sales” with revenue of $20 million and gross profit of $5.4 million.

The ASX dividend share is continuing to focus on more growth by expanding its exclusive brands and enhancing and developing Kogan Marketplace.

In January 2021, Kogan.com saw gross sales increase by 45% year on year which included 111.6% growth of Kogan Marketplace, 54.6% growth of exclusive brands, 102% growth of gross profit and 90% growth of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).

More reading

• $10,000 invested in the Kogan (ASX:KGN) IPO is worth how much today?
• Got money to invest? Here are 2 ASX shares to buy
• 2 quality ASX dividend shares with generous yields
• Is Temple & Webster (ASX:TPW) the best e-commerce ASX share to buy right now?
• ASX retail shares beware: Aldi e-commerce is coming

Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Kogan.com 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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The Afterpay Ltd (ASX: APT) share price is 3.48% lower today. At the time of writing, shares in the buy now, pay later (BNPL) provider are trading for $102.20.

Today’s negative movement comes at the same time as the company launches its new offering for in-store purchases – Afterpay Card.

For comparative purposes the S&P/ASX 200 Index (ASX: XJO) is down 0.24%. BNPL competitor Zip Co Ltd (ASX: Z1P) is down 4.58% to $7.40.

Let’s take a closer look at the company’s announcement.

Afterpay Card

Afterpay Card is a digital offering customers can access using their mobile wallets, much like a credit or debit card.

Afterpay users will be able to tap the card at merchant terminals to make the purchase. Just like its app, customers will pay for their product over four instalments, interest free. Afterpay estimates around 22% of its Australia and New Zealand total gross merchandise volume (GMV) comes from in-store purchases.

“Over the past five years we have built a strong in-store offering, with tens of thousands of merchants currently offering Afterpay in-store in Australia,” co-CEO and co-founder Nick Molnar said.

“The new Afterpay virtual card, which will sit in a customer’s digital wallet, is an evolution of our offering, making it even easier for millions of our Australian customers to split their in-store payments in four instalments without incurring interest — ever.

“There is enormous opportunity to reach a new customer, who out of habit or preference, opts to shop in-store, to easily and seamlessly utilise Afterpay at the point of checkout.”

Mr Molnar says the new product will benefit merchants as well as consumers.

“Merchants will also benefit as a result of the Afterpay Card as it will remove integration effort and costs for their business to support Afterpay in-store, which in turn provides more merchants for customers to shop at, in more verticals, with more merchants on offer.”

Merchants will be prevented to from surcharging users who use this product, just as with other Afterpay products. The Reserve Bank is, however, looking at ending this practice in Australia for BNPL providers.

Afterpay’s half-year results

For the 6-months ending 31 December 2020, Afterpay recorded a 106% increase in operating sales to total $9.8 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew a massive 521% over the prior corresponding period (pcp) to $47.9 million.

The number of customers grew by 80% on the pcp to 13.1 million. Over 8 million of the company’s customers live in North America (a 127% increase in the region on the pcp).

Afterpay recorded a loss of $79.2 million, which was in line with expectations.

Afterpay share price snapshot

The Afterpay share price hit a 3-month low last week. It’s down 18.67% from 1 month ago and 36.14% from its all-time high. The Afterpay share price is still 435.08% higher than this time 52-weeks ago. The Zip Co share price is similarly 422.7% higher from this time last year.

Many BNPL providers have seen their share price slide because of rising treasury bond yields. As well, competition in the sector is heating up, with both Commonwealth Bank of Australia (ASX: CBA) and PayPal Holdings Inc (NASDAQ: PYPL) entering the fray.

Afterpay has a market capitalisation of $29.2 billion.

More reading

• Why is the Zip (ASX:Z1P) share price down 30% this month?
• Are there any bargains when everyone knows everything?
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• 5 things to watch on the ASX 200 on Monday
• 2 of the best ASX growth shares to buy in April

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings. 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 Bubs Australia Ltd (ASX: BUB) share price is under pressure again on Monday.

In afternoon trade, the goats milk infant formula and baby food company’s shares are down 1% to a 52-week low of 50 cents.

This latest decline means the Bubs share price is now down 58% from its 52-week high.

Why is the Bubs share price at a 52-week low?

Investors have been selling Bubs shares in recent months due to a number of reasons. One of those is its underwhelming performance in FY 2021 and continued cash burn.

In respect to its FY 2021 performance, last month Bubs released its half year results and reported a 33% reduction in revenue to $18.3 million.

This was driven largely by weakness in infant formula sales due to issues in the daigou channel caused partly by COVID-19.

This weakness offset strong growth in Australian supermarket and pharmacy sales. Though, it is important to note that these sales are coming off a small base.

Unfortunately, things were even worse for its earnings, with Bubs reporting an operating loss of $14.4 million for the period. This compares to an operating loss of $5.25 million a year earlier.

This means that for every $1 of revenue Bubs is generating, it is actually losing 78.7 cents.

One positive is that the company ended the period with a strong cash balance of $40 million. This was thanks to the generosity of shareholders.

Capital raisings

The reason that Bubs finished in such a strong capital position was due to its $32.1 million capital raising at at 80 cents in September.

That capital raising, which which fell short of its $40 million target, was just the latest in a long run of raisings that Bubs has undertaken, diluting long term shareholders.

Clearly, without this capital raising, Bubs would have been in a precarious position.

Agreements going nowhere

Also weighing on the Bubs share price and investor sentiment are the countless announcements of agreements over the last few years which have seemingly gone nowhere.

One of those is a supply agreement with New Times Asia in 2018. Bubs stated that it “has entered a Supply Agreement with New Times Asia with a total sales commitment for purchase orders valued at $17M in FY19, and increasing to $24M in FY20, and $37M in FY21.”

It is unclear just how much this ultimately contributed to its sales. Furthermore, there has been no word on whether this deal will continue in FY 2022.

Bearish brokers

A fourth reason why the Bubs share price is at a 52-week low is the bearish view of one leading broker.

According to a note out of Citi last week, its analysts have held firm with their sell rating and 35 cents price target on Bubs’ shares. This price target implies potential downside of 30% for its shares over the next 12 months.

Citi is concerned over the sustained weakness in the daigou channel and the uncertainty regarding the company’s pathway to achieving profitability. This is particularly the case given the resurgence of domestic infant formula brands in the key China market.

More reading

• Top brokers name 3 ASX shares to sell next week
• 2 ASX shares that may be hit by Australia’s declining birth rate
• A2 Milk (ASX:A2M) shares and one other slapped with sell ratings
• Leading brokers name 3 ASX shares to sell today
• 2 small cap ASX shares with huge potential

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 BUBS AUST FPO. The Motley Fool Australia has recommended BUBS AUST 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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Cann Group Ltd (ASX: CAN) shares opened slightly higher on Monday but have since retreated. This comes after the company announced a partnership with Emyria Ltd (ASX: EMD). At the time of writing, the Cann share price is trading 1.75% lower at 56 cents after having reached as high as 59 cents in earlier trade.

Let’s take a look at what the company announced.

Cann and Emyria partnership 

The Cann share price is failing to ignite today after the company announced a collaboration with Emyria will seek to accelerate the registration of a unique, low-dose, cannabidiol (CBD) only capsule with Australia’s Therapeutic Goods Administration (TGA). 

Under the agreement, Emyria’s EMD-003 drug development program will use Cann Group’s proprietary Gelpell microsphere technology, as the basis for seeking a Schedule 3 registration for treating unmet needs in mental health. Cann Group previously acquired the rights to the Gelpell technology via its purchase of Europen company Satipharm. 

Scheduling is a national classification system that determines how medicines are made available to the public. Schedule 3 registration will result in the product being an over-the-counter, pharmacist only medicine. 

The collaboration leverages a number of important milestones that have already been met, including phase 1 trials of the Satipharm capsule. 

Emyria will lead the registration program with its experienced drug development and clinical team. The company has worked with Satipharm in the past, having written more than 400 Satipharm prescriptions to more than 170 patients.

According to the company, clinical trials have already hit the ground running and are guided by insights from Emyria data which include robust safety, efficacy and patient preference data for more than 3,500 patients treated at Emyria’s Emerald Clinics. 

Emyria managing director Dr Michael Winlo commented: 

This partnership greatly accelerates Emyria’s EMD-003 drug development program by combining Emyria’s unique clinical data and drug development expertise with Cann Group’s best in-class CBD delivery technology.

Satipharm CBD has already completed robust stability testing as well as Phase 1 clinical trials as required by the TGA. This allows us to move straight to pivotal clinical outcomes trials saving significant time and money. An experienced Contract Research Organisation (CRO) has already been engaged to manage these trials.

Further, at Emyria, we already have deep insights into how the Satipharm product performs clinically, having written over 400 Satipharm prescriptions to more than 170 patients. This de-risks the pivotal clinical outcomes trials required as an important first step towards registration with the TGA.

Global mental health challenge 

The collaboration highlights the global challenge of treating increasing mental health concerns, particularly over the last 12 months. 

A recent internal analysis from Emerald Clinics revealed that more than 50% of its patients were diagnosed with moderate to severe depression, anxiety and/or stress. 

If the collaboration is successful, the companies will be able to deliver a new, registered medicine for the treatment of psychological distress and symptoms of depression, anxiety and stress. 

Cann Group CEO Peter Crock commented that: 

We anticipate there will be a large patient demand for a TGA registered CBD medicine that is convenient to patients and demonstrates the highest standards of quality, safety and efficacy.

Cann share price snapshot

Over the past 12 months, the Cann share price has fallen by nearly 12%. Year to date, Cann shares are also down by nearly 6%.

Based on the current share price, the company has a market capitalisation of around $158 million.

More reading

• Japan’s $103 million pot stock hypocrisy unmasked
• Why the Emyria (ASX:EMD) share price is climbing 7% higher today

Motley Fool contributor Kerry Sun 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 Mercury NZ Ltd (ASX: MCY) share price is on the rise today after the company issued 200 million new green bonds. The gas and electricity company’s share price reached an intraday high of $5.81 this morning, up 3.75%. It has since dropped back and is currently trading at $5.68, up 1.43% for the day so far.

So, what are green bonds and why have they boosted the Mercury Energy share price?

Let’s dive deeper into the mystery of green bonds. 

Could green bonds be the future of environmentally friendly investing?

Green bonds are pretty much the same as normal bonds. The only difference is that a green bond must be certified by the Climate Bonds Initiative (CBI), with at least 95% of the proceeds going towards climate-friendly projects.

The major benefit for environmentally conscience investors is that they can be assured their bonds are going towards financing eco-friendly projects, while still having their investment backed by the issuer’s entire balance sheet. It’s a relatively low-risk way of investing ethically (although no investment is ever risk free).

More about Mercury Energy’s new green bonds

Mercury announced its intention to issue green bonds before the market opened on 15 March. Over the following two trading days, the company’s share price launched by more than 8%. On 19 March, the company announced the interest rate that would apply to the bonds. The second piece of news was met with another, though much smaller, share price gain of 2%.

Today’s news is that the company has officially issued the bonds to those who subscribed. 

The green bonds issued by Mercury have been earmarked to fund the company’s renewable energy projects. Mercury didn’t mention whether these would be new or existing projects.

Mercury states that 100% of the energy it provides is renewable. Thus, the raised capital has the potential to go towards the company’s hydro, solar, wind or geothermal initiatives. Or, possibly something else entirely.

Each bond will set back an investor NZ$1. Mercury intends to raise NZ$200 million. 

Not all willing investors were able to grab themselves a green bond. Mercury reserved them for clients of the Joint Lead Managers, NZX participants and other approved financial intermediaries.

The bonds are 5.5 year, unsecured, unsubordinated fixed rate green bonds, with an interest rate of 2.16% per annum.

Mercury share price snapshot

The Mercury share price is up 42% over the last 12 months, but it has dropped 10.69% year to date.

Mercury has a market capitalisation of around $7.6 billion, with approximately 1.3 billion shares outstanding.

More reading

• 3 attractive ASX shares currently in a dip
• Why the Mercury (ASX:MCY) share price is surging today

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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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.

Social media stocks: Love ’em or hate ’em, it’s where many eyeballs are going these days. While social media stocks are susceptible to government regulation, thorny privacy and safety issues, and not to mention young upstart challengers, most companies did exceptionally well last year in the pandemic. With the continuing shift to digital advertising, these companies could be in for sustained growth in the years ahead, even when the pandemic subsides.

Social media companies also benefit from powerful network effects, making first-movers hard to displace. So it’s not surprising that two “granddads” of social media, Facebook (NASDAQ: FB) and Twitter (NYSE: TWTR), did well last year. Facebook is up 75% and Twitter is up 140% over the past 12 months, compared with 62% for the S&P 500.

FB 1 Year Total Returns (Daily) data by YCharts

With economies reopening and advertising revenue starting to recover, which is the better stock today?

Facebook exceeds Twitter on every business metric, but can things change?

Twitter is up more than Facebook over the past year due to improvements relative to 2019. Still, Facebook clearly has the better overall business as things stand today. During the fourth quarter, here’s how the two social networks stacked up on several key metrics.

FY 2020 Metric	Facebook	Twitter
Year-end MAUs	2.80 billion	N/A
Year-end DAUs	1.84 billion	192 million
DAU growth	11%	27%
Revenue	$86.0 billion	$3.7 billion
Revenue growth	22%	7%
Operating profit	$32.7 billion	$26.7 million
Operating profit growth	36%	(93%)

Data source: Company filings. Table by author.

There’s no real question as to which is the better business at this moment: Facebook wins hands-down. Thanks to its unmatched scale, intimate knowledge of customers, highly visual format, and precision targeting capabilities, Facebook is becoming the advertising platform of choice for businesses large and small, and is especially key for small online businesses to reach new customers.

But Twitter is improving

Despite the massive outperformance of the Facebook business, Twitter has been the better stock over the past year. This is likely due to where both stocks started. Facebook is a nearly $800 billion market cap behemoth, while Twitter, even after its big run, only has a market cap of $49 billion.

Twitter’s user base also accelerated more than Facebook’s, with mDAUs growing 27% in 2020 versus Facebook’s 11%. That could lead some to believe Twitter will accelerate its top line, even though it actually lagged Facebook on a revenue growth basis last year.

Twitter has clearly had problems monetizing its platform, but things began to improve throughout 2020. Revenue accelerated throughout the year, exiting Q4 at a 28% revenue growth rate, higher than the 7% it posted for the full year. Within overall revenue, ad revenue growth was an even higher 31%.

Notably, the company brought in more direct response advertisers, not just big brands. And Twitter also retooled its ad server to better target mobile ads. The new mobile application promotion (MAP) tool generated 50% growth in Q4. Management also hopes to improve its non-existent standing with small businesses going forward.

But Facebook may be the better stock in a rising rate environment

With the economy reopening and interest rates going up, things may swing more in favor of more profitable companies in 2021. That bodes well for Facebook, which is still much, much cheaper than Twitter on both a price-to-earnings and price-to-sales basis:

FB PE Ratio (Forward) data by YCharts

Twitter may also have a hard time generating near-term profits even if its revenue growth holds up, because it’s still making some heavy investments. Management forecasts 25% growth “or more” in total expenses in 2021, so Twitter will have to accelerate revenue if it hopes to grow profits at all.

Meanwhile, Facebook should continue to mint profits, which not only affords Facebook the ability to reinvest in its core platform and buy back stock, but also invest in new technologies, setting up its next chapter. For instance, Facebook’s Oculus AR platform could be a future growth driver, and the company just unveiled a new wrist-based wearable that could become an AR-based virtual computing platform of the future.

Stay with the safer bet

Whether or not Facebook can make a disruptive breakthrough in augmented reality is still an open question. However, even absent any new business, Facebook’s better value and more solid profits stand to hold up better in the rising rate environment than Twitter’s hoped-for growth. I’d expect the relative performance of these two companies to reverse in 2021. Today, Facebook’s the choice.

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

More reading

• I want to double your money every 5 years: fundie
• How to counter the ASX 200’s Achilles heel
• When dividends can be a bad thing for an ASX share
• How to invest in the Nasdaq Index on the ASX
• Nine (ASX:NEC) and News Corp (ASX:NWS) share prices rise after Facebook deal

Billy Duberstein owns shares of Facebook and has the following options: short August 2020 $140.0 puts on Facebook. His clients may own shares of the companies mentioned. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook and Twitter. 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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Every so often, I like to look to see how successful investments in initial public offerings (IPOs) have been.

On this occasion, I’m going to look at how a $10,000 investment in Kogan.com Ltd (ASX: KGN) shares would have fared. Here’s what I found:

The Kogan IPO

Kogan has now been listed on the Australian share market for just under five years. The ecommerce company’s shares landed on the ASX boards on 30 June 2016 at a listing price of $1.80 per share.

This means that if you bought $10,000 worth of Kogan shares at its IPO, you would have ended up with approximately 5,556 shares in your portfolio.

How has Kogan performed?

Kogan has been a very strong performer since its IPO, delivering stellar sales and earnings growth over the period.

For example, upon listing, Kogan was generating sales of $200 million and aiming to increase this to $240 million in FY 2017.

If we fast-forward to today, Kogan has recently released its half year results and revealed that its gross sales came in at $322.9 million for the six months.

Underpinning this strong growth has been the shift online, acquisitions, the success of Kogan Marketplace, and the launch of countless new verticals such as Kogan Cars.

Where are its shares today?

Interestingly, Kogan had a terrible start to life as a listed company. The Kogan share price fell as much as 17% before closing at $1.50 on day one.

Pleasingly, investors that took part in its IPO and held firm during the day one sell off have been rewarded handsomely thanks to its impressive sales growth.

This afternoon the Kogan share price is fetching $12.69. This means that the 5,556 shares you would have picked up at its IPO now have a market value of $70,500.

Where next for the Kogan share price?

The good news for shareholders is that the gains may not be over, according to one leading broker.

A recent note out of Credit Suisse reveals that its analysts have an outperform rating and $20.85 price target on its shares.

If the Kogan share price were to rise to this level, those 5,556 shares would be worth a sizeable ~$116,000.

Overall, this demonstrates why investing in IPOs can be worth considering as part of a balanced portfolio.

More reading

• Got money to invest? Here are 2 ASX shares to buy
• Is Temple & Webster (ASX:TPW) the best e-commerce ASX share to buy right now?
• ASX retail shares beware: Aldi e-commerce is coming
• Why Zip (ASX:Z1P) and this growth share are in the buy zone today
• 2 ASX growth shares that could be strong buys

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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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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The Golden Mile Resources Ltd (ASX: G88) share price is rocketing in early-afternoon trade. This comes after the company announced exciting gold results from its recent aircore (AC) drilling program. At the time of writing, the Australian-based miner’s shares are fetching 11 cents, up more than 111%.

What’s driving the Golden Mile share price higher?

Investors are fighting to pick up Golden Mile shares after the company updated the ASX with its drill results.

According to its release, Golden Mile has intersected a wide zone of thick, high-grade gold mineralisation at the Wanghi Prospect. The high impact AC drilling program that began in late February reported the following results:

• 33 meters @ 1.60g/t (grams per tonne) Au (gold) from 48 meters in hole BTAC187 including 16 meters @ 2.95g/t Au from 61 meters.
• 3 meters @ 2.74g/t Au from 15 meters in hole BTAC 188.
• 4 meters @ 0.51g/t Au from 36 meters in hole BTAC 189.

The company stated that BTAC187 is the first of six holes that have received assays from its 2021 drilling campaign. Currently, there are another 75 holes that have been drilled amounting to over 3,000 kilometres of AC drilling.

Golden Mile noted that it has over 1,000 samples at a laboratory in Perth, Western Australia to analyse the results. It’s expected that the finding will be released within the next few weeks.

In addition, Golden Mile revealed that geological mapping has identified a previously unrecognised structural trend controlling gold mineralisation. The company plans to commence RC drilling mid-next month targeting the site for further mineralisation.

What did management say?

Golden Mile managing director James Merrillees commented:

These are exciting results for the Company. We intersected further wide zones of strong gold mineralisation in fresh rock at Wanghi, and the recognition of important structures controlling mineralisation provides an important new targeting tool for the follow up RC drilling planned next month.

The Golden Mile share price has gained 450% in the past 12 months and is up by around 83% year to date, thanks in large part to today’s gains.

More reading

• How New Yorkers could send ASX cannabis shares higher
• Evolve (ASX:EVO) share price lifts after centre settlement, CEO retirement
• Why is the Inca Minerals (ASX:ICG) share price up 8% today and 430% this year?
• Could this ASX ETF be in a perfect storm in 2021 and beyond?
• Why Immutep, Inghams, REA Group, & Synlait shares are sinking

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 Golden Mile (ASX:G88) share price rockets 112% on drill results appeared first on The Motley Fool Australia.

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It wasn’t too long ago that the very idea of ASX cannabis shares was laughable.

Aside from a few smoky hash bars in the Netherlands, cannabis use was prosecuted vigorously across most countries. While billions of dollars were earned in global black markets, ASX investors had no means to tap into the underground industry.

But the 21st century has brought a lot of change, albeit slowly.

Today a growing cadre of nations have legalised medicinal cannabis use, including Australia. While recreational use remains illegal in Australia, the list of nations (and states within the United States) giving the green light for recreational pot smoking also grows inexorably.

New York’s legal cannabis bill eyes $460 million tax revenue

In the US, New York looks to become the latest state seeking to capitalise on the tax benefits of legalised cannabis use while lightening the burden on its legal system.

The state’s Legislature is scheduled to vote on legalising the sale and use of cannabis this week.

As Bloomberg reports:

The expansive bill would allow dispensaries to open as soon as next year, and includes special cannabis taxes, permission for home growers to cultivate their own marijuana, and as well as limits on the number of licenses that can go to large corporations.

According to New York’s governor Andrew Cuomo, legalising the sale of marijuana could bring in US$350 million (AU$460 million) in taxes every year. He also said it might create 30,000–60,000 new jobs.

The proposed legislation will also see people previously convicted for cannabis crimes that will no longer be illegal have their convictions expunged.

Two leading ASX cannabis shares

New York’s move on legal cannabis alone is unlikely to have an immediate, large impact on most ASX cannabis shares.

But for longer-term investors, the state’s move highlights the continuing trend towards global legalisation. And with that trend, the best-placed ASX cannabis shares could see their share prices run far higher.

There are a growing number of cannabis shares on the ASX. For the purposes of this article, we’ll look at 2.

First up, Creso Pharma Ltd (ASX: CPH). The company develops pharmaceutical-grade cannabis treatments for human and animal healthcare.

Creso Pharma has a market cap of $220 million. The Creso share price is down 10% since Friday after the company announced the intent for an $18 million capital raising at 19 cents per share. Despite that fall, Creso shares are still trading at 22 cents per share at the time of writing.

Over the past 12 months, the Creso Pharma share price has soared 275%. That dwarfs the 36% gain posted by the All Ordinaries Index (ASX: XAO). So far in 2021, Creso shares are up 25%.

The second ASX cannabis share we’ll look at today is Althea Group Holdings Ltd (ASX: AGH). With a market cap of $139 million, the company produces and supplies pharmaceutical-grade medicinal cannabis in Australia and the United Kingdom.

Down 0.96% today, despite announcing additions to its medicinal cannabis product line, the Althea share price has also outperformed over the past 12 months, up 115%.

Year-to-date, Althea shares have gained 17%, compared to a 1% gain on the All Ords.

More reading

• Why the Althea (ASX:AGH) share price is on a high today
• Here’s why the Creso Pharma (ASX:CPH) share price is falling 7%
• Japan’s $103 million pot stock hypocrisy unmasked
• Creso Pharma (ASX:CPH) share price lower despite cannabis sales update
• Why the Creso Pharma (ASX:CPH) share price is rocketing 16% higher today

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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