As the all-mighty iron ore price rally is running out of puff, brokers are getting excited about another commodity!

Greenies should cover their ears. The commodity in question is coal and its bull run is partially fuelled by the devastating floods in New South Wales.

The 100-year natural disaster disrupted supply lines to the port of Newcastle, which is the largest coal export port in the world.

Coal prices are firing up

But coal prices were already on the rise even before the wild rains. UBS noted that coal shipment volumes have been weak since the start of 2021 and is predicting thermal coal prices to jump over US$100 a ton. It’s current trading around US$87 a ton.

“The fall in coal shipment volumes YTD is led by South Africa (-23% YTD due to Transnet rail issues exacerbated by heavy rains & COVID-19), Australia (-8% YTD), Canada (-8% YTD) & the US (-6% YTD),” said UBS.

“Last week (ending 21-Mar), coal shipment volumes are -23% y/y, which is materially weaker than the prior week (which was +1% y/y).

“Overall shipments YTD are still tracking below the average level in 2017-19.”

Accidental carbon reduction

While rail lines to the port of Newcastle are partially reopened, the broker is expecting Australian supply to remain tight, at least in the near-term.  

“Shiploading has also been suspended for 2wks at the NCIG terminal at Newcastle (capacity 66Mt) after faults were identified on shiploader #1,” added UBS.

“This follows the suspension of shiploader #2 at NCIG in Nov-20 for 6-12mths due to wind[1]damage.”

ASX miners most affected

But rising coal prices are a mixed blessing. Miners can only capitalise on high commodity prices if they can ramp up supply.

The broker estimated that shipments from the Newcastle Coal Infrastructure Group (NGIC) are down a whopping 68% week-on-week.

The ASX coal miners most impacted by the disruption are the Yancoal Australia Ltd (ASX: YAL) share price and BHP Group Ltd (ASX: BHP) share price.

This is followed by the Whitehaven Coal Ltd (ASX: WHC) share price, according to UBS.

Challenges in capitalising on high coal prices

“There are currently ~40 ships queued at the Port of Newcastle,” said UBS.

“We note limited scope for Canada, South Africa & other regions to lift supply, so thermal coal prices are set to remain elevated near-term.”

It’s worth noting that the South32 Ltd (ASX: S32) share price could benefit the most from the NSW floods if it manages to ship more of its coal from its South African mines.

More reading

• How are ASX 200 shares faring in the carbon revolution?
• 3 ways to help protect your ASX share portfolio against inflation
• How to counter the ASX 200’s Achilles heel
• What’s happening with the Whitehaven Coal (ASX:WHC) share price today?
• Where to invest your BHP (ASX:BHP) dividends

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited and South32 Ltd. 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 This primitive commodity is set to overtake the iron ore price rally appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Qu9l76

The Bitcoin (CRYPTO: BTC) price is down 3.8% over the past 24 hours. According to data from CoinDesk, 1 Bitcoin is currently worth US$52,041.94 (AU$68396.12).

That’s seen the market cap of the world’s largest cryptocurrency dip below the US$1 trillion mark to US$975 billion.

Still a tidy sum.

And with renewed Bitcoin investor interest stirred by Tesla Inc (NASDAQ: TSLA) founder Elon Musk, some analysts are tipping renewed momentum for the digital token.

Elon Musk will accept Bitcoin for Tesla vehicles

After making global headlines earlier this year when Tesla invested US$1.5 billion into Bitcoin, Elon Musk is at it again.

The eccentric billionaire, reported by Forbes to be worth more than US$165 billion, sent out a number of tweets overnight Aussie time. These tweets revealed that you can now buy a Tesla with Bitcoin. Though that’s only possible within the United States at the moment. Musk said the company will accept Bitcoin payments for its vehicles outside of the US later in 2021.

Tesla’s electric vehicles (EVs) will still be priced in US dollars. However, Musk indicated that Tesla will hold onto the Bitcoin it receives for its EVs rather than selling them for fiat currency.

A quick google search tells me you can pick up a base Tesla Model S for AU$132,718. Or you can once the offering expands to Australia.

Let’s say you have 2 Bitcoin in your digital wallet.

At today’s Bitcoin price that means you’d need 1.9438 Bitcoin to drive the Model S off the lot. Meaning you’d have .0562 Bitcoin left over from your original 2 Bitcoin, or 5.62 million satoshis.

A satoshi, if you’re not familiar, is worth 100 millionth of 1 Bitcoin. They’re named after the mysterious founder of the cryptocurrency, Satoshi Nakamoto.

Why the Bitcoin price could rise further over the longer term

Simon Peters is a crypto asset analyst at brokerage eToro. According to Peters emailed comments (as quoted by Forbes):

Tesla’s decision to both accept payment for its cars in bitcoin and hold that bitcoin on its balance sheet rather than convert it to dollars will likely build more momentum for the crypto asset.

Tesla and other companies are showing that crypto is here to stay, and its mainstream adoption is only going to increase. In terms of market dynamics, as more companies hold bitcoin on their balance sheet, so the finite supply is depleted even more, and this is likely to cause a supply-side squeeze and boost prices over the longer-term.

More reading

• Here’s an ASX tech share flying under the radar: fundie
• 3 ways to help protect your ASX share portfolio against inflation
• How to counter the ASX 200’s Achilles heel
• 4 reasons ARK recently increased its Tesla share price target to US$3,000
• Is Bitcoin (CRYPTO:BTC) the answer to ASX investors’ inflation worries?

Bernd Struben 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 Bitcoin and Tesla. 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 At today’s Bitcoin price that’ll be 2 Bitcoin for a Tesla Model S appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39cEDGm

On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Blackmores Limited (ASX: BKL)

According to a note out of Citi, its analysts have retained their sell rating and $59.20 price target on this health supplements company’s shares. The broker notes that rival Swisse is planning to increase its investment in marketing in Australia. It fears this could weigh on Blackmores’ performance in the local market. Citi suspects that this could lead to slower than expected growth, which could be bad news for its shares given the high multiples they trade on. The Blackmores share price is fetching $82.38 this afternoon.

Premier Investments Limited (ASX: PMV)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target on this retail conglomerate’s shares to $20.20. Although Premier Investments delivered a strong first half result, the broker doesn’t believe it is sustainable. Particularly given how its earnings continue to benefit from wage and rent subsidies. In addition to this, with Goldman forecasting its earnings to growth by a CAGR of 3.8% over FY 2019-23, it feels its shares are expensive at 23x estimated FY 2022 earnings. The Premier Investments share price is trading at $24.88 on Thursday.

Resolute Mining Limited (ASX: RSG)

Analysts at Macquarie have downgraded this gold miner’s shares to an underperform rating and slashed the price target on them to 55 cents. According to the note, the broker made the move after the Ghanaian government terminated its Bibiani gold mine licence. Unfortunately for Resolute, this has happened just a matter of weeks before the expected sale of the asset to Chifeng Jilong. Macquarie believes the sale is now unlikely to go ahead, at least on current terms. The Resolute share price has crashed 25% lower to 47.2 cents today.

More reading

• Why Airtasker, Netwealth, Piedmont Lithium, & Resolute Mining are tumbling lower
• Why Brickworks, McPherson’s, MedAdvisor, & Premier Investments are storming higher
• ASX 200 up 0.3%: Brickworks impresses, Resolute hammered, Netwealth crashes
• Top broker puts sell rating on Premier Investments (ASX:PMV) share price
• Why the Resolute (ASX:RSG) share price will be in focus this morning

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3d8qBXl

Respiri Ltd (ASX: RSH) shares were on the move this morning after the company announced it will be launching its Wheezo brand in the United Kingdom. The Respiri share price opened around 3% higher following the news. However, at the time of writing, the company’s shares have retreated back to 16 cents, flat for the day so far.

The software-as-a-service (Saas) company also advised today that two new executives will be joining its board as strategic advisors.

Let’s look further into the company’s announcements.

Wheezo UK launch

The Respiri share price was temporarily boosted today after the company stated it plans to launch Wheezo in the UK. The combination app and device product aims to help those with asthma manage the condition. The company said it is on track to launch in the UK market in late 2021.

This comes after Respiri’s news on Tuesday that Wheezo has received United States Food and Drug Administration (FDA) clearance.

Respiri is in discussions with multinational pharmaceutical company Cipla and other potential partners ahead of Wheezo’s UK launch.

Further, Respiri states it’s in discussions with leading clinicians in the UK regarding the company’s participation as a technology partner in multiple, large, asthma-related studies. These studies are expected to provide evidence for the use of asthma therapeutics and the role of digital technologies in the management of paediatric asthma.

The company says better asthma management has the potential to lead to improved outcomes and quality of life for those with the condition.

Advisor appointments to Respiri board

In further news impacting the Respiri share price this morning, the company also announced it has recently appointed two new advisors to its board.

Dr Andrew Weekes and Dr Mark Levy will aid the company in its UK launch, according to the announcement.

Dr Weekes is the country medical director for Australia of GlaxoSmithKline (NYSE: GSK). Respiri states GlaxoSmithKline is a leading global player in respiratory diseases. Dr Weekes will provide advice to Respiri’s board regarding Wheezo’s commercialisation, its clinical development and other subjects.    

Dr Levy has been appointed as an advisor for the UK. He has been a member of the Global Initiative for Asthma executive board since 2009. Respiri CEO Marjan Mikel said Dr Levy has provided the board with advice and introductions ahead of its UK launch.

Respiri share price snapshot

The Respiri share price is having a stellar year on the ASX and is currently up by 23.08% year to date. It is also up by nearly 83% over the last 12 months.

The company has a market capitalisation of around $115 million, with approximately 722 million shares outstanding.

More reading

• Respiri (ASX:RSH) share price on watch following FDA approval

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Respiri (ASX:RSH) share price opened higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ref3H2

Airtasker Ltd (ASX: ART) shares have finally taken a breather after briefly touching $1.965 today. The Airtasker share price had surged 202% from its listing price of 65 cents to hit the intraday high today. 

However, the company’s shares have since been sold down and, at the time of writing, are trading 16.57% lower at $1.46. 

How did the Airtasker share price surge 200% in just three days? 

Initial public offerings (IPOs) can be highly volatile and unpredictable in nature. But it isn’t unusual for an IPO to deliver triple-digit returns in a short time frame.

Airtasker highlighted significant demand for its IPO, noting that it was more than five times oversubscribed by institutional and retail investors. This means that more than $400 million was put up by investors compared to the $83.7 million the IPO was looking for.

Yesterday, more than 100 million shares or ~25% of its 392.9 million shares outstanding were traded. The significant demand for Airtasker shares and volume is likely a contributing factor to its soaring share price. 

Will history repeat itself? 

Many successful IPOs in the past have experienced boom, bust and consolidation cycles. 

Douugh Ltd (ASX: DOU), for example, is a fintech company that offers consumers a complete financial wellness platform incorporating budgeting, banking and investment features. Its shares ran more than 1,500% in just two weeks from its listing price of 3 cents to a peak of 49 cents. 

IPOs that boom also have the tendency to bust, with the Douugh share price more than halving in subsequent months. Its shares are still significantly higher than its listing price, but that isn’t the case for investors who thought buying at 40 cents was a good idea. 

A similar narrative played out for other ASX IPOs including 4DMedical Ltd (ASX: 4DX), Credit Clear Ltd (ASX: CCR), DC Two Ltd (ASX: DC2) and Doctor Care Anywhere Group PLC (ASX: DOC).

These IPOs have all demonstrated some degree of significant shareholder return for those participating from the outset before the shares were brought back down to reality in subsequent weeks or months. 

More reading

• Why Airtasker, Netwealth, Piedmont Lithium, & Resolute Mining are tumbling lower
• ASX 200 rises, Airtasker soars again, Westpac considers NZ
• Airtasker (ASX:ART) share price surges a further 86% higher
• How does Airtasker (ASX:ART) stack up against its peers?
• ASX 200 dips, travel shares drop, Pushpay soars

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

The post Airtasker (ASX:ART) share price sinks 17% after explosive IPO appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3d64pgh

The Oceania Healthcare Ltd (ASX: OCA) share price is not having a great day today. Oceania shares are down 0.4% to $1.23 a share at the time of writing. Comparatively underperforming the S&P/ASX 200 Index (ASX: XJO), which is up 0.31% at the time of writing.

The current Oceania share price means that shares are now down 18% since 16 February. As well as 5.4% year to date.

Why might Oceania Healthcare shares be falling today?

Well, it’s been a dramatic week for this ASX healthcare share. On Tuesday morning, Oceania shares were placed in a trading halt at the request of the company. The catalyst for this halt was a proposed NZ$100 million capital raising program. As we reported at the time, Oceania was hoping to raise NZ$80 million via a fully underwritten placement from institutional investors. In addition to NZ$20 million through a non-underwritten retail offer. The possibility of an oversubscription being accepted.

The primary purpose of this capital raise was to fund an acquisition. Namely, the Waterford on Hobsonville Point retirement village in Auckland, New Zealand.

As such, Oceania shares were suspended from trading on Tuesday and returned to the markets yesterday. We also heard from the company yesterday about the success of its institutional placement. According to Oceania, the institutional placement was fully subscribed at a price of NZ$1.30 a share. According to the company, the offer was “strongly supported by existing institutional shareholders and also attracted significant bids from other institutional investors”.

Share purchase plan opens

But we also got an ASX announcement today outlining what the retail offer has in store for ordinary investors. The retail offer will be available for all existing shareholders as of 22 March. These shareholders will be entitled to apply for up to NZ$50,000 worth of new shares. The price will be the lower of either NZ$1.30 a share (or approximately $1.19 on current exchange rates), or “a 2.5% discount to the five-day volume-weighted average price of Oceania Healthcare Shares traded on NZX [the New Zealand Stock Exchange] during the five NZX trading days up to, and including, the Closing Day [12 April 2021]”.

Investors will receive any shares applied for on “on or about” Friday 16 April.

Thus, it’s understandable that the Oceania Healthcare share price is falling today. Why would existing investors buy shares on the ASX at today’s price of ~$1.23 when they can apply for more shares at roughly $1.19? This is the likely reason behind the Oceania Healthcare share price weakness today.

More reading

• What is pushing up the Atlas Arteria (ASX:ALX) share price today?
• ASX 200 up 0.3%: Brickworks impresses, Resolute hammered, Netwealth crashes
• The ASX sector set to outperform this morning thanks to Suez
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, Airtasker soars again, Westpac considers NZ

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Oceania Healthcare (ASX:OCA) share price is falling today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3lPV1S7

In afternoon trade on Thursday the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up 0.2% to 6,794.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Airtasker Ltd (ASX: ART)

The Airtasker share price has run out of steam and is sinking 17% lower to $1.45. This appears to have been driven by concerns over the valuation of the recently listed online jobs marketplace provider after an incredible rise following its IPO. In fact, even after today’s sizeable decline, the Airtasker share price is still up 123% from its listing price of 65 cents.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price has crashed 14% to $13.77 after announcing the termination of its deposit arrangement with Australia and New Zealand Banking GrpLtd (ASX: ANZ). The agreement with ANZ currently provides a margin of 95 basis points above the overnight cash rate. However, this will now end in 12 months. The company is trying to negotiate a new arrangement, but it is unlikely to be on as favourable terms.

Piedmont Lithium Ltd (ASX: PLL)

The Piedmont Lithium share price has sunk over 14% to 94.5 cents. This appears to be a delayed response to its capital raising earlier this week. The lithium developer raised US$122.5 million at a discount of the equivalent of 90.9 Australian cents per share. The company intends to use the net proceeds from the offering to continue the development of the Piedmont Lithium Project, investments, and for working capital purposes.

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price has plunged 25% lower to 47.2 cents. Investors have been selling the gold miner’s shares after it announced that its Bibiani Gold Mine licence in Ghana has been terminated. As a result, Resolute has been advised to cease all activities and operations at the site. The company is currently in the process of selling the asset to Chifeng Jilong Gold Mining. But this news has the potential to scupper the deal.

More reading

• Airtasker (ASX:ART) share price sinks 17% after explosive IPO
• ASX 200 up 0.3%: Brickworks impresses, Resolute hammered, Netwealth crashes
• Why the Netwealth (ASX:NWL) share price is sinking 15% lower today
• Here’s why the Piedmont Lithium (ASX:PLL) share price is crashing 17% lower
• Why the Resolute (ASX:RSG) share price will be in focus this morning

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

The post Why Airtasker, Netwealth, Piedmont Lithium, & Resolute Mining are tumbling lower appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3f93qyJ

The Washington H Soul Pattinson & Co Ltd (ASX: SOL) is gaining today, up 3.5% at the time of writing.

This comes after the S&P/ASX 200 Index (ASX: XJO) listed investment house (also known as WHSP) released its half-year results for the financial year ending 31 January 2021 (H1 FY21).

What did Soul Patts report for the first half?

The Soul Pattinson share price is moving higher today after the company reported a 35% increase in its net profit after tax (NPAT). NPAT for the half-year came in at $68.9 million, up from $51.0 million in H1 FY20.

Regular NPAT, however, fell 27.7% from the previous corresponding period to $90.2 million. In its release, the company noted that “regular profit after tax is a non-statutory profit measure and represents profit from continuing operations before non-regular items”.

Soul Pattinson pointed to a drop in revenue from New Hope Corporation Limited (ASX: NHC) for part of that decline due to lower coal prices and production in the first quarter. New Hope’s contribution to regular profit fell $43 million year-on-year.

The company also stated that TPG did not contribute to regular profit following its merger with Vodafone due to its “derecognition as an equity accounted associate” of Soul Patts.

The group’s pre-tax net asset value increased 1.3% during the half-year, up to $5.2 billion. Net cash flows from its investments fell 8.0% from H1 FY20 to $85.3 million.

Soul Pattinson also reported a 13% increase in its number of shareholders compared to the prior corresponding period.

Management commentary

Commenting on the results, Soul Pattinson chair Robert Millner said:

WHSP has delivered annual total shareholder return (TSR) that is 5.6% per annum higher than the All Ordinaries Accumulation Index over the past 20 years. Over this period, an investment in WHSP has grown by a factor of almost 12 times, which is triple the value of an investment in the index.

Our diversified portfolio of assets continues to perform well during the COVID-19 pandemic. WHSP has traditionally outperformed the market when the market returns are negative. Our focus on quality businesses with solid cashflows enables us to preserve capital in more difficult markets and continue paying dividends.

Soul Patts will pay an interim dividend of 26 cents per share, fully franked. That’s up 4.0% from the corresponding half year. The record date is 22 April, with payment on 14 May.

Soul Patts highlighted that it was the only company in the All Ordinaries Index (ASX: XAO) to have increased its dividends every year for the past 20 years.

Looking ahead

With a look into the year ahead, Soul Patts’ managing director Todd Barlow said the operating environment for most of the company’s investments continued to improve from the disruptions of COVID-19.

In particular, we are seeing a strong recovery in certain commodities such as thermal coal and copper (up 42% and 73% respectively in the last 12 months in USD terms)…

We continue to have liquidity available for new investments and have a strong pipeline of opportunities which we believe will deliver superior risk adjusted returns.

Soul Pattinson share price snapshot

The Soul Pattinson share price has outperformed the wider market over the past 12 months, up 66% compared to a 36% gain on the ASX 200.

So far in 2021, the Soul Patts share price is up 6%.

More reading

• Why the New Hope (ASX:NHC) share price is in focus
• 2 ASX dividend shares for steady income in retirement
• This ASX company has increased or maintained dividends for 44 years
• 2 ASX 200 shares that keep growing the dividend every year
• 2 ASX dividend shares to buy with yields above 4%

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. 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 Soul Pattinson (ASX:SOL) share price is climbing higher today appeared first on The Motley Fool Australia.

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

There’s more to Adore Beauty Group Limited (ASX: ABY) than its share price. The company has called out the entire Australian beauty industry for its lack of inclusion. In particular, when it comes to products such as foundations and concealers. In an open letter from Australia’s leading online beauty retailer, Adore has called for equal access regardless of skin tone.

Despite the Adore share price falling 27% since listing in October, the company has continued to empower its consumers and challenge the status quo. Adore Beauty’s ‘Global Shades’ project is an example of that.

Beauty is indiscriminate, products should be too

The open letter and an accompanying petition from Adore targets the ongoing hardship for people of colour in Australia. This includes the ability to find foundations and concealers that match their skin tone at an affordable price.

This move is part of the bigger Global Shades campaign. In fact, the campaign began with a letter from employee Shanthi Murugan in 2017. At the time, Shanthi, a South Asian woman of colour, couldn’t find the right foundation and concealer for her skin tone. This letter reached founder, Kate Morris, and ignited a push towards stocking a broader range of shades.

Ms. Murugan has been leading that charge, as head of campaign and strategy, for the past four years. Commenting on the project to Business Insider, Ms. Murugan stated:

We know we’re not perfect and we’re trying to be better and deliver an inclusive experience. The support from the Australian public and beauty industry to rebuild an accurate picture of ‘Australian beauty’ will result in real change and a positive shift for customers.

In a bid to be more inclusive, Adore Beauty is working towards ranging 2,600 various shares from 350 complexion products. This extended range to accommodate all skin tones resides in a dedicated category on the company’s website called Global Shades.  

A voice for change

The company originally founded by Kate Morris in 1999 from a garage in Melbourne. Since its humble beginnings, Adore Beauty has grown to become Australia’s leading online beauty retailer. Since the start, Kate Morris desired to empower the consumer in what could be an “intimidating and unpleasant” experience.

That mission has travelled from the garage all the way to the ASX while resonating with millions of customers in the process. The company currently offers more than 260 brands and over 10,800 products through online channels.

Although the Adore Beauty share price might not reflect progress, the financials do. In the most recent half-year report, the company recorded a revenue increase of 85% to $96.2 million. This was driven by strong customer growth, adding a further 350,000 active customers in 12 months.

Adore Beauty share price glamour shot

Adore Beauty is helping its customers feel beautiful in their own skin. However, the company’s share price isn’t looking so pretty. Since listing, the share has fallen nearly 27% from $6.92 to $5.06. This is despite the online retailer producing strong results in the last half and management being optimistic about executing its strategy ahead. 

Based on the current Adore Beauty share price, the company’s market capitalisation is now $470.6 million.

More reading

• 2 rapidly growing mid cap ASX shares to buy
• 2 ASX shares that could be fantastic buy and hold options
• 10 of the best ASX shares to buy in March
• ASX fashion and beauty shares shine on half-year results
• 2 buy-rated small cap ASX shares growing rapidly

Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. 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 Adore Beauty (ASX:ABY) calls for a more inclusive beauty industry appeared first on The Motley Fool Australia.

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

The Humm Group Ltd (ASX: HUM) share price is pushing higher on Thursday following the release of an update.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up 1% to 97 cents.

What did Humm announce?

This morning the Afterpay Ltd (ASX: APT) rival announced a range of new partnerships that it believes cements its position as the leading BNPL provider in the health and wellbeing sector across Australia and New Zealand.

According to the release, Humm’s new partnerships include Maven Dental Group, CPAP Clinic, Aidacare, Removery, and Cosmetique. This means there are now over 3,500 unique health and wellbeing locations across Australia on its platform.

In addition to this, the company provided an update on the performance of this side of the business.

It advised that the health and wellbeing vertical continues to grow as a percentage of its overall volume in Australia. Financial year to date, it has increased 38% and recently hit an annualised run rate of $120 million. Management believes this demonstrates the strong appetite and need for instalment payments in the health industry.

The company also notes that with an average transaction size of over $4,000, Humm is attracting customers that other BNPL providers like Afterpay are not able to service.

A quarter of all dental chairs covered by Humm

Humm’s Chief Executive Officer, Rebecca James, appears very pleased with the company’s progress in the sector.

She said: “We entered the health market two years ago and have rapidly grown to be the largest BNPL provider in this space, delivering over $120m on an annualised basis. One in four dental chairs in Australia is now covered by humm.”

“This is being driven by our exclusive partnership with Centaur’s Dental4Windows software, which has integrated National Dental Plan into its leading quoting software and presents humm as the exclusive finance solution in over ten thousand treatment plans being offered every year.”

“Meanwhile, over 50% of enterprise audiology practices now offer humm’s fast, easy, and flexible solution offering financing for purchases that aren’t just nice-to-have, but a need-to-have. These practices have also chosen humm because of our significant understanding of credit risk in this sector,” she added.

More reading

• Is the Affirm share price dragging ASX BNPL shares lower?
• Why the Humm (ASX:HUM) share price will be on watch on Thursday
• Is Afterpay (ASX:APT)’s BNPL competition heating up?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Humm (ASX:HUM) share price pushes higher on BNPL update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3chkq3Q