• Kathmandu (ASX:KMD) share price on watch as dividends resume

    A man with binoculars crouched in the bush, indication a share price on watch

    Kathmandu Holdings Ltd (ASX: KMD) shares are on watch today after the company released its half-year results and reported its dividend has resumed. The Kathmandu share price closed Monday’s session 1.3% lower at $1.14.

    Let’s look closer at Kathmandu’s announcements today.

    Kathmandu’s half-year results

    The Kathmandu share price will be in focus this morning after the company announced it will pay shareholders a dividend for the first time since October 2019. Although, the NZ 2 cent (AUD 1.9 cent) per share fully franked dividend is the company’s smallest yet.

    Kathmandu boasted that its half-year sales were up by 12.9% to around $410 million. Its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was also up by 19%, standing at around $48 million. 

    The company’s half-year results show that its 2019 acquisition of Rip Curl may have been a stroke of genius, as the brand held the company’s EBITDA strong through the first half of the 2021 financial year. Particularly as international border closures reduced consumer demand for Kathmandu’s insulation and rainwear.

    Kathmandu stated Rip Curl’s wholesale forward orders are now above pre-COVID levels.

    The half-year results also mentioned Kathmandu-owned brand Oboz is seeing sales growth and has a strong forward order book.

    Commentary from management

    Kathmandu group’s CEO Xavier Simonet said Rip Curl’s outstanding first-half result has validated Kathmandu’s diversification strategy.

    Benefiting from increased participation in surfing in Australia, Europe and the USA, Rip Curl achieved strong sales and profits despite COVID-19 trading restrictions, reflecting the brand’s technical product focus and strong consumer engagement.

    Over the first half, we implemented a rapid response to changes in consumer preference resulting from COVID-19. To respond to increased participation in local travel and adventure, our brands adjusted their focus to product categories in high demand, such as wetsuits and surfboards for Rip Curl, and camping and footwear for Kathmandu. Omni-channel capability allowed our brands to capture record demand for the online channel, with online penetration now making up almost 13% of the Group’s direct to consumer sales.

    Kathmandu share price snapshot

    The Kathmandu share price has spent the last 12 months recovering from a steep drop in March 2020 due to COVID-19. It is currently 141.49% higher than it was this time last year. Although, it is still 49.1% lower than it was on the first trading day of 2020. Year to date, Kathmandu shares are down by 3.81%.

    The company has a market capitalisation of around $804 million, with 709 million shares outstanding.

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    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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  • Is the Telstra (ASX:TLS) share price a buy after its restructure update?

    Telstra share price

    On Monday the Telstra Corporation Ltd (ASX: TLS) share price pushed higher following an update on its proposed legal restructure. You can read about that here and also here.

    This led to the Telstra share price climbing almost 1.5% to $3.25.

    Is the restructure a good idea?

    According to analysts at Goldman Sachs, they believe the restructure is a big positive and expect it to unlock value for shareholders.

    In light of this, this morning the broker has retained its buy rating and $4.00 price target on the telco giant’s shares.

    Based on the current Telstra share price, this price target implies potential upside of 23% for its shares over the next 12 months.

    And with Goldman Sachs forecasting fully franked dividends of 16 cents per share for the foreseeable future, the 12-month total potential return on offer here stretches to approximately 28% if you include dividends.

    What did Goldman Sachs say?

    Goldman is pleased with its plans and believes the company’s shares are undervalued at the current level.

    It said: “We remain positive on TLS, as this update outlines the next steps of the corporate restructure and potential asset monetization, and gives us confidence that its infrastructure value will ultimately be realized by shareholders. Based on our updated transaction multiples/illustrative SOTP valuations, TLS shares currently trade on just 4.1-4.7x ServeCo FY23E EBITDA or 5.7-6.3X at our unchanged A$4.00 12m TP, vs. SPK.NZ at 8.3x. We reiterate our Buy on TLS, our preferred ANZ Telco, ahead of its FY21 results and Nov-21 ID, both of which we view as positive catalysts.”

    What are the downside risks for the Telstra share price?

    While Goldman is positive on the company, it has named a few risks for the Telstra share price that investors ought to consider before investing.

    It explained: “Downside risks for TLS include: 1) Increased competition, particularly in the mobile market, 2) disappointing cost out relative to its $2.7bn productivity program, 3) unfavourable regulation across its businesses; 4) asset monetisation is ultimately unsuccessful.”

    Though, based on its rating and price target, the risks appear skewed to the upside at present.

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

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  • Why the Oceania (ASX:OCA) share price is frozen

    A man on a phone call points his finger, indicating a halt in trading on the ASX share market

    The Oceania Healthcare Ltd (ASX: OCA) share price won’t be going anywhere today after the company’s shares were placed in a trading halt. This comes after Oceania unveiled plans for its latest capital raise.

    Why is the Oceania share price in a trading halt?

    Oceania today announced plans to raise ~NZ$100 million to fund its latest acquisition plans. The company will seek to raise NZ$80 million via a fully underwritten placement and a NZ$20 million non-underwritten retail offer. Oceaniea will have the ability to accept oversubscriptions at its discretion.

    The funds will be used in the acquisition of a premium retirement village, Waterford on Hobsonville Point, in Auckland, New Zealand. Oceania is also planning to use the money in its existing leased facility and adjacent development land in Franklin.

    The Oceania share price will be one to watch when the company’s shares return to trade early next week.

    Oceania said in today’s release that the funds will provide additional financial capacity for its future growth and reduce corporate debt outstanding while other growth opportunities are assessed.

    The Kiwi healthcare group’s shares will enter a trading halt today with plans to re-commence trading on Monday 29 March.

    Oceania’s placement will be fully underwritten by Jarden Partners Limited and Macquarie Securities (NZ) Limited. The placement is underwritten at a fixed price of NZ$1.30 per share – a 6.5% discount to the last close price of NZ$1.39 per share on 22 March.

    The Waterford on Hobsonville Point site comprises 64 independent living villas and 36 independent living apartments. Oceania’s acquisition is expected to settle in April or May 2021 and remains conditional on relevant approvals.

    What else has been happening for Oceania?

    The Oceania share price climbed higher on Monday after the company announced its new CEO. Former CFO, Brent Sutton, has been appointed the group’s new CEO effective immediately.

    The news saw the Kiwi healthcare share edge higher yesterday after former CEO Earl Gasparich was poached by Metlifecare Limited earlier this month.

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

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  • ASX 200 crash anniversary: 5 of the best performing shares of the last 12 months

    five asx shares represented by five candles on birthday cake

    Today is a momentous day. This time last year, on 23 March 2020, the S&P/ASX 200 Index (ASX: XJO) was having one of its worst days yet with the coronavirus-induced market crash. The market was plummeting after yet another night of heavy selling over in the United States.

    Little did we know at the time, though, that this would be the day the ASX 200 found its bottom. Yes, after 23 March, it was only onwards and upwards. More so for some shares than others, of course.

    Here are 5 of the best performing ASX shares since that fateful day (in ascending order of performance):

    5 of the best performing ASX shares since the COVID crash

    5. Zip Co Ltd (ASX: Z1P)

    At today’s share price of $8.21, it’s hard to imagine Zip Co at just $1.05 a share. Yet that’s where this buy now, pay later (BNPL) company briefly found itself 12 months ago. But fast forward one year and Zip shareholders have a 682% gain under their belts. Not a bad outcome at all.

    4. Pilbara Minerals Ltd (ASX: PLS)

    Pilbara was hit by a perfect storm this time last year. Lithium miners like Pilbara had been in a bear market long before COVID-19 graced our lives. So when the market crashed, Pilbara was pushed to multi-year lows, bottoming out at 13 cents a share on 23 March 2020.

    Today, Pilbara is a $1.02 stock, meaning investors have enjoyed a 685% recovery.

    3. Afterpay Ltd (ASX: APT)

    Afterpay has become a poster child of the ASX 200 recovery. It famously got down to a price of $8.01 on March 23 last year, down from the near-$20 a share it was commanding a month earlier.

    Remember, that seemed ludicrously expensive at the time for the BNPL pioneer! But today, Afterpay is going for $109.53 a share – a move I’m not sure even the bulls of the bulls could have dreamed of a year ago. That’s a return of 1,267%, thank you very much!

    2. Pointsbet Holdings Ltd (ASX: PBH)

    Pointsbet shareholders were wiped out by around 80% between 14 February and 23 March last year. But anyone who had the nerves of steel to hold on has been richly rewarded for their courage.

    Since reaching a low of $1.04 on 23 March last year, Pointsbet closed yesterday at a price of $14.24 a share. That’s a handy 1,269% return.

    1. Redbubble Ltd (ASX: RBL)

    Last, but certainly not least is Redbubble, a company known for helping artists sell their works on various innovative mediums (like mugs for instance) online. Last March seemed to coincide with a slump Redbubble had been working through over the previous months.

    It reached a low of 40 cents on 23 March. But today, Redbubble shares are worth, at the time of writing, $5.70 each. That’s a return of… drumroll…. a whopping 1,325%. Just for some context, that return would result in a $10,000 investment then being worth $132,500 today.

    Foolish takeaway

    Got FOMO yet? I know I have, so that’s all for today! But this does go to show that selling your favourite companies in the worst throes of a market crash might just be one of the worst financial decisions you can ever make.

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    Sebastian Bowen (unfortunately) 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 Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Pointsbet Holdings 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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  • Here’s why the Pushpay (ASX:PPH) share price could surge higher today

    The Pushpay Holdings Ltd (ASX: PPH) share price will be one to watch this morning following the release of an announcement relating to a new cornerstone investor.

    In early trade in New Zealand, the donation and engagement platform provider’s NZX-listed shares are trading 5% higher.

    What did Pushpay announce?

    This morning Pushpay revealed that the Huljich family has finally completed the selldown of its holding in the company.

    According to the release, Christopher & Banks V Limited, the investment vehicle associated with Peter Huljich and Christopher Huljich, have sold 100% of their remaining shares in Pushpay to leading global investment firm Sixth Street.

    In doing so, Pushpay understands that Sixth Street will become its largest shareholder, holding approximately 17.8% of its shares outstanding after the acquisition completes on 30 March 2021.

    What is Sixth Street?

    The release explains that Sixth Street is a global investment firm with over US$50 billion in assets under management and committed capital.

    It was founded in 2009 and has more than 320 team members, including over 145 investment professionals operating from nine locations around the world.

    Sixth Street has a long-term oriented and highly flexible capital base, allowing it to invest thematically across sectors, geographies, and asset classes.

    Select current and past investments in growth companies include Airbnb, AirTrunk, AvidXchange, Gainsight, Kyriba, MDLIVE, Paycor, PaySimple, Spotify, and SumUp.

    “Delighted”

    Pushpay’s Chairman, Graham Shaw, was delighted to have Sixth Street on board.

    He said: “We are delighted to welcome Sixth Street as a cornerstone investor in Pushpay. As a highly experienced technology and growth investor with a core thematic focus on the convergence of software and payments, Sixth Street’s global scale and partnership-oriented investing approach brings considerable strength to Pushpay’s shareholder register.”

    “On behalf of Pushpay, I would also like to sincerely thank Peter and Christopher Huljich for their invaluable contribution and commitment to the business over the past seven years. We are extremely grateful for their support and wish them all the best with their future endeavours.”

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    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 PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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  • Top brokers name 3 ASX dividend shares to buy today

    Buy ASX shares

    Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

    But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, I have picked out three ASX dividend shares that brokers think investors should buy:

    Metcash Limited (ASX: MTS)

    According to a note out of Goldman Sachs, its analysts have retained their buy rating and lifted their price target on this wholesale distributor’s shares to $4.03. Goldman was pleased with Metcash’s latest strategy update, which highlighted a shift in its strategy to a growth footing. In addition to this, it notes that management has flagged its strong capital position by increasing its dividend payout ratio. In light of the latter, Goldman is now forecasting fully franked dividends of 19 cents per share in FY 2021 and 18 cents per share in FY 2022. Based on the current Metcash share price of $3.49, this will mean yields of 5.4% and 5.15%, over the next couple of years.

    Telstra Corporation Ltd (ASX: TLS)

    Analysts at Ord Minnett have recently upgraded this telco giant’s shares to a buy rating with a $4.05 price target. According to the note, the broker believes Telstra is well-placed to benefit from the 5G rollout due to its superior network. In addition to this, it believes its shares are good value and offer an attractive yield. Ord Minnett expects Telstra to continue paying a 16 cents per share dividend over the next couple of years. Based on the current Telstra share price of $3.25, this will equate to a fully franked 4.9% dividend yield.

    Westpac Banking Corp (ASX: WBC)

    A note out of Citi reveals that its analysts have retained their buy rating and $26.00 price target on this banking giant’s shares. According to the note, the broker believes there is scope for the banking sector to continue to outperform as more investors rotate into bank shares due to rising bond yields and their improving outlooks. Citi is expecting Westpac to pay $1.30 per share fully franked dividends over the next couple of years. Based on the Westpac share price of $24.66, this will mean a generous 5.3% yield.

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    Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Why the CV Check (ASX:CV1) share price will be on watch this morning

    asx share price on watch represented by investor looking through magnifying glass

    The CV Check Ltd (ASX: CV1) share price will be on watch this morning following the company’s release of a business update. At yesterday’s market close, the online integrated screening and verification company’s shares finished the day at 14.5 cents.

    Let’s take a look at what CV Check provided investors with late Monday evening.

    Best sales on record

    The CV Check share price could be on the move today after the company advised it delivered a robust performance for the March quarter.

    According to its release, CV Check reported strong trading conditions throughout February. This resulted in the company achieving a new all-time sales record for the month, and the 12-month booked annual recurring revenue (ARR).

    The strong sales growth came from new customer wins, as well as high-order volumes driven by its established customer base.

    CV Check noted that sales are continuing to run into March – the final month of Q3 FY21.

    In addition, the company highlighted that the Bright People Technologies acquisition is on track. Settlement is expected to occur sometime in early April.

    CV Check CEO Rod Sherwood commented on the company’s solid performance:

    A very strong couple of months have kicked off the calendar year. A strong January was followed by new all-time revenue records being set in February for both a single month of sales and the booked 12-month ARR. Growth is being driven by both new customer wins and high order flow from long standing customers who are active in bringing on new hires and re-compliance screening. March sales volume as experienced to date continues to be very strong.

    CV Check share price snapshot

    The CV Check share price has gained over 100% in the past 12 months, but lost over 20% year to date. The company’s shares reached a 52-week high of 21 cents in February when news of the acquisition came to light.

    Based on valuation grounds, CV Check has a market capitalisation of around $51.5 million, with 355.2 million shares on issue.

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    Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check 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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  • Where to invest your BHP (ASX:BHP) dividends

    Young female investor holding cash ASX retail capital return

    Today is a big day for BHP Group Ltd (ASX: BHP) shareholders with the mining giant scheduled to pay its latest dividend.

    BHP is paying eligible shareholders a fully franked $1.31 per share interim dividend. This means a whopping US$5.1 billion is heading into shareholders’ bank accounts this morning.

    If you’re planning to reinvest these funds into the share market, then you might want to consider the ASX shares listed below. Here’s what you need to know about them:

    REA Group Limited (ASX: REA)

    The first ASX share to consider buying with these dividends is REA Group. It is the dominant player in real estate listings in the Australian market with its realestate.com.au website. The company also owns and operates a number of complementary businesses in Australia and other listings websites around the globe.

    After a couple of difficult years because of the housing market downturn and COVID-19, REA Group looks well-placed for strong growth over the medium term. This due to the booming housing market, new revenue streams, cost cutting, and its growing international operations. 

    One broker that is particularly positive on the company is Morgan Stanley. It currently has an overweight rating and $175.00 price target on its shares.

    ResMed Inc. (ASX: RMD)

    Another ASX share to look at is ResMed. It is a sleep treatment-focused medical device company with a growing portfolio of industry-leading products.

    ResMed has consistently delivered solid sales and earnings growth over the last decade. This has underpinned market-beating returns for its shares, much to the delight of shareholders.

    The good news is that the next decade looks just as positive thanks to its strong market position, growing cloud business, the ever-increasing awareness of sleep disorders, and the shift to home healthcare.

    Morgans is a big fan of ResMed. Its analysts currently have an add rating and $30.09 price target on its shares.

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  • Top brokers name 3 ASX shares to buy today

    Australia’s leading brokers are always on the lookout for the best ASX shares to buy.

    Brokers don’t always get it right, but they are often on the money. They regularly update their view on different businesses as share prices change or when that ASX share releases an important announcement, such as a result.

    These three ASX shares have been rated as buys recently:

    Volpara Health Technologies Ltd (ASX: VHT)

    Volpara has been rated as a buy by Morgans as it highlighted the benefits of the CRA Health purchase and the benefit of growth of its average revenue per user (ARPU). The share price target is $1.94.

    A few weeks ago, Volpara announced that it was acquiring Boston-based CRA Health for US$18 million with another potential US$4 million payable based on meeting certain targets.

    Volpara explained that CRA is profitable, with annual recurring revenue (ARR) of over US$4 million, average revenue per user (ARPU) of around US$1.70 and coverage of around 6% of US breast screenings. CRA software is integrated with major electronic health record and genetics companies.

    This acquisition increases Volpara’s market share to over 30%. It also increased the group ARPU to over US$1.40.

    A couple of weeks ago, Volpara revealed that CRA Health had won a contract that covered the provision of breast cancer risk scores to a large Indiana-based organisation that has sites across more than 20 states and runs a major electronic health record system. It was the biggest in Volpara’s history.

    BWX Ltd (ASX: BWX)

    Natural beauty business BWX has been rated as a buy by the broker Citi. It has a price target of $5.35.

    Citi noted that the company is seeing less engagement on social media recently, but if it can increase that with users then it could help growth in the future. But, the natural beauty business is focusing its efforts on the domestic retail sector – this may lead to a better payoff for the company.

    In the FY21 half-year result the ASX share reported net revenue grew by 0.6% to $84.5 million, or 3.4% in constant currency terms. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 1.4% to $11.7 million.

    BWX said that the Chemist Warehouse equity partnership will continue to fuel growth of Sukin, Andalou Naturals and Mineral Fusion in Australia and international markets. The Woolworths Group Ltd (ASX: WOW) partnership will see Sukin launched in 930 Woolworths stores. It has also achieved distribution gains in North American retailers including in Walmart (Canada) and Mineral Fusion in Wholefood Markets.  

    Clover Corporation Limited (ASX: CLV)

    Clover is a business that aims to deliver science-based bioactives into products such as infant formula.

    The ASX share is rated as a buy by the broker Ord Minnett, which has a price target of $2.37 for the ASX share.

    Clover is suffering from reduced demand for infant formula, however it is also staying on top of its costs. Whilst demand is low, the broker pointed out that it has a good customer base that will lead to potential upside when daigou and other demand returns.

    In the recently-released FY21 half-year result it showed a 21.7% decrease in net sales revenue to $29.4 million and a 45.8% reduction in net profit after tax (NPAT) to $2.5 million.

    Clover is still confident about the future, saying that the fundamentals of the business remain strong with opportunities for growth across markets and segments currently curtailed by COVID-19.

    It’s expecting FY21 revenue to be in the range of $60 million to $70 million.

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    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 recommends VOLPARA FPO NZ. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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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  • LIVE COVERAGE: ASX to fall; tech could climb

    Where to 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.*

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    *Returns as of February 15th 2021

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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and 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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