The price of Bitcoin (CRYPTO: BTC) is falling today as Tesla Inc‘s (NASDAQ: TSLA) CEO Elon Musk announced the company would no longer be offering Bitcoin as a payment option. Musk tweeted this morning that Tesla has suspended Bitcoin payments for Tesla electric vehicles due to fossil fuels used in Bitcoin mining.

Tesla & Bitcoin pic.twitter.com/YSswJmVZhP

— Elon Musk (@elonmusk) May 12, 2021

https://platform.twitter.com/widgets.js

“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment,” tweeted Musk.

At this point, Tesla won’t be selling its Bitcoin reserves. Musk hopes Tesla will begin using the cryptocurrency again if Bitcoin mining turns to renewable energy sources.

Musk also said the company is looking to use other cryptocurrencies, some of which use less than 1% of Bitcoin mining’s energy needs.

Let’s take a look at what Tesla’s strong environmental stance has done to the value of Bitcoin.

Bitcoin mining too much for Tesla

After Musk’s tweet, the price of Bitcoin fell by as much as 12.6% at its lowest point.

At the time of writing, a single Bitcoin is trading for AU$65,468.43. 7 minutes before Musk’s tweet this morning, a Bitcoin was worth AU$70,626.99.

It hit its lowest point of the day around 2 hours after Musk’s tweet when a Bitcoin was costing investors AU$61,725.35.

Bitcoin mining is built into the design of the cryptocurrency. To put it simply, Bitcoin miners receive Bitcoins in exchange for verifying transactions. The verification process is extremely complicated. Therefore, Bitcoin miners employ supercomputers and algorithms to do much of the hard work.

All of this takes an enormous amount of power. In fact, according to ABC News, Bitcoin mining might soon use more electricity than all of Australia.

Cambridge University’s Cambridge Centre for Alternative Finance has found 38% of Bitcoin mining is powered by energy from burning coal.

This is partly due to two-thirds of Bitcoin mining taking place in China. Aside from China’s rainy season, which makes hydroelectricity cheap, the country’s miners use coal power.

Tesla wakes from its Bitcoin dream

In February, the electric vehicle manufacturer invested US$1.5 billion in the cryptocurrency. Tesla’s purchase caused Bitcoin’s value to surge to what was, at the time, an all-time high.

At the time, The Motley Fool Australia reported Tesla’s investment could legitimise the digital currency market and pave the way for more companies to adopt the crypto asset as a part of their treasury-management strategies.

Musk announced on Twitter Inc (NYSE: TWTR) in March that US Tesla dealerships would be accepting Bitcoin payments.

Pay by Bitcoin capability available outside US later this year

— Elon Musk (@elonmusk) March 24, 2021

https://platform.twitter.com/widgets.js

Alas, Australians ready to buy a Tesla as soon as the cryptocurrency was accepted down under will now have to wait longer.

More reading

• Could Dogecoin and Bitcoin be getting an extra push?
• Why Tesla stock tumbled again on Tuesday
• How Twitter’s earnings beat missed big
• Ethereum climbs even higher… but why? Dogecoin might be the answer
• Here are the US shares ASX investors were buying last week

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin, Tesla, and Twitter. 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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GPT Group (ASX: GPT) shares are up and down in Thursday’s session. At the time of writing, shares in the real estate investment group are trading 0.43% lower at $4.58. The GPT share price has, however, been oscillating between green and red during morning trade. For context, the S&P/ASX 200 Index (ASX: XJO) is currently also sitting 0.36% lower.

The company comes into focus after its annual general meeting (AGM), in which both the chair and CEO presented on the company’s current situation.

Let’s take a closer look at these speeches.

Chair’s address

In the first presentation, GPT Group chair Vickki McFadden talked about the company’s future and some of the challenges it faced.

McFadden blamed GPT’s 2020 troubles largely on the coronavirus pandemic. The company was especially hit by the 6-month lockdown in Melbourne, where a majority of its assets are located. As well, McFadden said rent relief measures that were implemented at the beginning of the pandemic materially affected its bottom line.

“The Group’s financial performance in 2020 was impacted by government measures implemented in response to the pandemic including the restricted trading conditions for our Retail assets and the mandatory rent relief to affected tenants,” she said.

“The impact on the Group’s 2020 rental income from COVID-19 was approximately $95 million, which includes approximately $72 million in the form of tenant rent waivers. We did qualify for and receive JobKeeper payments totalling $8.8 million.”

McFadden added funds from operations (revenue) from 2020 was still $554.7 million, or 28.48 cents per share. This was down 9.6% compared to 2019, however. The GPT Group share price rose when these results were announced in February. In 2020, GPT Group had a net loss of $213.1 million.

Property valuations also fell in 2020 by $712.5 million, according to the chair. She attributed this decline mostly to retail assets.

McFadden also confirmed she would run for re-election to the board.

CEO’s comments

After McFadden, GPT Group CEO Bob Johnston addressed shareholders at the AGM. Johnston reiterated the impacts of government restrictions on the business, especially in Victoria.

Johnston said the company was geared below its target range of 25% to 35% and maintains A and A2 credit ratings from S&P and Moody’s, respectively. It is also expanding into the logistics sector through around $400 million worth of development and acquisition during 2020. The total value of the group’s logistics assets is $3 billion. Johnston said he expects this figure to increase as demand outgrows supply. Occupancy rates in GPT’s logistics assets are currently 96.8%.

The CEO also claimed the office portfolio of the business is going strong, despite the challenges of 2020.

“Our Office portfolio continued to deliver strong results in 2020 demonstrating its resilience despite work from home arrangements enduring for much of the year,” Johnston said.

“Notwithstanding travel and mobility restrictions, our team concluded 99,600 square metres of signed leases across the portfolio, with an additional 26,500 square metres under Heads of Agreement.”

Office occupancy rates in GPT’s buildings are 91.9%, according to the CEO.

The group’s latest building project in Parramatta has just been completed and work is still continuing on its office building at Cockle Bay Wharf in Sydney.

Visitation rates to its shopping centres in December were 95% of what they were pre-COVID, Johnston claims. The one exception is its Melbourne Central centre. The Melbourne CBD is still lagging in foot traffic compared to other parts of the country. Occupancy rates for shopping centres in the business are 98%.

In other news, 4,000 leasing deals were completed in 2020 and a further 142 were wrapped up in the first quarter of this year.

Total funds under management for GPT are $12.9 billion.

It seems investors are not fully decided on what today’s update means for the company going forward, judging by today’s GPT share price movements.

GPT share price snapshot

Over the past 12 months, the GPT Group share price is up by around 14%. Over the last half-year, however, the company’s value has fallen by around 2%.

GPT has a market capitalisation of $8.9 billion.

More reading

• The GPT (ASX:GPT) share price is on watch today. Here’s why.
• Why GPT, Mayne Pharma, Talga, & Zip shares are tumbling lower
• Why the GPT (ASX:GPT) share price is sliding today

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

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The Redcape Hotel Group Pty Ltd (ASX: RDC) share price is surging today after the company announced an upgrade to its FY21 guidance.

Redcape shares are up 5.6% at the time of writing, trading at $1.03.

Redcape owns and operates pubs and hotels across New South Wales and Queensland, offering gaming, food and beverage, and also liquor through retail bottle shops.

Redcape’s increased dividends

Redcape upgraded its dividend guidance after it reported continued strong trading in its third quarter of FY21.

The company now expects its underlying earnings to rise to 10.2 cost-per-share (cps), after initially projecting 9.7 cps. It’s lifted its fourth-quarter dividend distribution to 2.67 cps, from 1.83 cps in the previous guidance.

Redcape has also increased its full-year distribution, for the financial year ended 30 June 2021, to 8.16 cps. This represents an  11.5% uplift against the company’s previous guidance.

The lift in the company’s fourth-quarter dividend distributions represents an annualised yield for this financial year of 8.3%.

The company attributed its ability to raise its distribution to “strong liquidity” and “earnings resilience”. Its distribution payment date is 30 August this year.

Redcape is also currently acquiring more hotel properties for its portfolio.

It recently settled two additional Sydney properties, O’Donoghue’s Hotel at Emu Plains and The Gladstone Hotel at Dulwich Hill. Meanwhile, it expects to settle its two recent Brisbane hotel acquisitions, the Aspley and Shafston hotels, on 17 May 21.

Management comments

Redcape CEO Dan Brady said the new guidance highlighted the company’s strong performance.

This is a clear demonstration that our dedicated focus to enhance our local communities through the Public Communities program is resonating with our customers. Our continued attention on improving staff and customer engagement highlights the overall resilience of our portfolio as we return to growth.

Redcape share price snapshot

The Redcape share price has lifted almost 9% over the past month and is up 10% since the start of 2021.

Shares in the company are also up over the past 12 months, lifting by more than 43% despite enduring shutdowns due to the coronavirus pandemic.

More reading

• Market Volatility Update
• ASX 200 down 0.4%: Xero sinks, Telstra hit with $50m fine
• Here’s why the ABR (ASX:ABR) share price has dived 9%
• Why the 5G Networks (ASX:5GN) share price is climbing today
• The real reason the NAB (ASX:NAB) share price is under pressure today

Motley Fool contributor Lucas Radbourne-Pugh 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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If there’s one thing 2020 should have taught us, it’s that the stock market is volatile.

A 38% fall in 37 days between mid-February and mid-March.

A full recovery, to an all-time high, in the 14 months that followed, to set a new record closing high on Tuesday.

And then, a couple of days of falls.

Overnight, the S&P 500 fell more than 2%, on the back of a stronger than expected inflation result.

We’ll probably follow, to some degree.

Volatility.

Of course, the ‘total market’ stats hide a lot of individual share price movements.

Afterpay, one of the hottest stocks in the land, didn’t just fall 38% last March.

It fell a full 78%.

More than three-quarters of its value disappeared in a little over a month.

Dead? Buried?

Actually, not so fast.

Over the following 5 months, it went up more than 10 times in value.

And kept going.

Almost exactly 12 months after its pre-COVID high, shares hit $158.

From $40 in February 2020.

To $9 in March 2020.

To $96 in October 2020.

To $158 in February 2021.

To $101 in March

To $128 in April.

To $89 yesterday.

Yep. Volatility.

Now, if you’re like me — actually, if you’re human at all — your brain will work in a very specific way: the more recent something is, the more powerfully you’ll remember it, and the more it acts to crowd out events further back.

There is a reason for the cliche “Generals fight the last war” — it’s the one everyone remembers. It’s seared into their minds. 

That means if you’ve been an Afterpay shareholder for more than a year — even if you bought at $9, $29 or $49 — you’re probably feeling pretty ordinary right now.

You’re thinking about the losses over the past month.

I don’t blame you; as I said, it’s evolution at work.

So I’m, today, here to help you consciously address your subconscious.

I’m here to remind you: 

That volatility is the ‘ticket to the dance’ in investing.

That volatility has always been with us.

That even Warren Buffett’s company, Berkshire Hathaway (I own shares for the record) fell more than 50% from its peak three times over Buffett’s time at the helm.

That even Woolies — hardly a go-go tech stock — fell from $37 to $20 between 2014 and 2016, before going on to get back to $40 last year.

I’m here to remind you that progress is never a straight line.

I wrote above ‘… If you’re like me…’.

So let’s make it personal.

I own Kogan shares.

They were over $30 last year. They’re now trading a little above $10.

I own Corporate Travel. I saw them go from $30 a few years ago to under $6 last year. Then bounce back to almost $22. They’re under $17 as I type this.

I own Treasury Wine Estates. Those shares were riding high at almost $20 last year. They’re now less than half that.

And over the last few months, my portfolio has been walloped.

Seeing that money disappear is painful. No two ways about it.

Truly, I feel your pain.

But I’m not dispirited.

I’m not disheartened.

I’m not dissuaded.

See, we’ve been here before.

Oh not ‘here’ exactly, but a place very much like it.

The ‘87 crash.

The 1990s recession.

The Asian Financial Crisis in the late 90s.

The dot.com crash.

The GFC.

And yep, the COVID crash.

That’s a lot.

They’re not fun.

They’re not easy.

They’re not predictable.

They don’t all have the same pattern.

And yet… according to Vanguard, a hypothetical $10,000 investment in Australian shares would have turned into $130,457 over thirty years to June 30, last year.

(And yes, the market is even higher, since then.)

There are no guarantees in investing.

But the history of the stock market is one of steady (if saw-toothed) upward progress.

As I said, I feel your pain.

So what am I doing?

Well, I haven’t sold a single share in years.

I’ve been buying, regularly.

Because, if I’m right, and my diversified portfolio of companies continues to deliver business growth, leading to higher profits, I think share prices will follow.

Indeed, times of fear and uncertainty have, historically, been times to buy, not sell.

So, remember Warren Buffett’s advice. 

He wrote that he and his business partner, Charlie Munger, let their investments:

 “…tell us by their operating results – not by their daily, or even yearly, price quotations – whether our investments are successful.

“The market may ignore business success for a while, but eventually will confirm it. As Ben [Graham] said: “In the short run, the market is a voting machine but in the long run it is a weighing machine.”

“The speed at which a business’s success is recognized, furthermore, is not that important as long as the company’s intrinsic value is increasing at a satisfactory rate. In fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price.”

Easy to say.

Harder to do.

But worth it.

We’re right here with you. 

Investing alongside you.

Right now, things are bumpy. 

But this, too, shall pass.

I’ll end with a lesson I learned many years ago.

When I was learning to ride a motorcycle, I was pretty wobbly.

They’re big, heavy, and it takes a while to get used to the acceleration and braking.

And you need to keep the thing balanced.

I was finding it really hard.

Until the instructor gave me one piece of advice:

“Stop looking at the ground in front of your front wheel”, he said. 

“Look to where you want to go”

More reading

• ASX 200 down 0.4%: Xero sinks, Telstra hit with $50m fine
• Here’s why the ABR (ASX:ABR) share price has dived 9%
• Why the 5G Networks (ASX:5GN) share price is climbing today
• The real reason the NAB (ASX:NAB) share price is under pressure today
• Brokers name 3 ASX shares to buy now

Scott Phillips owns shares of Berkshire Hathaway (B shares), Corporate Travel Management Limited, Kogan.com ltd, and Treasury Wine Estates Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short June 2021 $240 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Treasury Wine Estates Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Woolworths Limited. The Motley Fool Australia has recommended Berkshire Hathaway (B shares) and 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. The benchmark index is currently down 0.4% to 7,016.6 points.

Here’s what is happening on the market today:

Xero sinks following full year results

The Xero Limited (ASX: XRO) share price is sinking following the release of its full year results. For the 12 months ended 31 March, Xero reported an 18% increase in revenue to NZ$848.8 million and a 39% jump in EBITDA to NZ$191.2 million. This compares to the market consensus estimate of NZ$854 million and NZ$228 million, respectively. In addition to this revenue and earnings miss, weakness in the tech sector is also likely to be weighing on its shares.

Telstra hit with $50 million fine

The Telstra Corporation Ltd (ASX: TLS) share price is trading broadly flat today despite being dealt a $50 million penalty by the Federal Court. This penalty was in relation to its treatment of Indigenous customers in rural and remote parts of Australia. This follows the telco giant previously admitting that it had acted unconscionably towards 108 customers across five Telstra-branded stores, by selling them phone plans that they could neither afford nor understand.

Pro Medicus contract

The Pro Medicus Limited (ASX: PME) share price is trading higher today after announcing a major new contract win. The healthcare technology company has signed an 8-year deal with The University of Vermont Health Network worth $14 million. The deal will see Pro Medicus provide a unified diagnostic imaging platform that will run across its network. This replaces the existing multiple legacy PACS platforms that are currently being used.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Ausnet Services Ltd (ASX: AST) share price with a 4% gain. This morning analysts at Goldman Sachs put a buy rating and $2.15 price target on its shares. The worst performer has been the Xero share price with a 7% decline following its results release.

More reading

• Pro Medicus (ASX:PME) share price sinks despite new deal
• Telstra (ASX:TLS) share price higher despite being hit with $50 million penalty
• Xero (ASX:XRO) share price on watch after delivering strong growth in FY 2021
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 drops again, Pushpay rises, CSR climbs

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 and recommends Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Pro Medicus 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 American Pacific Borates Ltd (ASX: ABR) share price has plunged 9.6% after the company announced updates for its potential US listing and borate operations.

What’s driving the ABR share price today 

The ABR share price took a 25% plunge on Monday after the company announced that it would defer Phase 1A for its Fort Cady Borate Mine. Instead, the company intends to shift its focus to a larger borate operation and production of borate specialties combined with sales of boric acid.

Today’s announcements reiterate the decision to defer Phase 1A into an all Phase 1 construction. The larger initial operation is expected to have stronger financial metrics and be more attractive for US market involvement. 

ABR highlights borate as an essential material for green energy generation, permanent magnets for electric vehicles and wind turbines, energy storage applications and micronutrients to increase yield to reduce deforestation. Looking ahead, it intends to establish further partnerships focusing on borates for use in global decarbonisation initiatives. 

It appears as though borate follows a rare-earths like narrative, where there is a global supply chain dependency on Turkey. The company believes its new supply will play a role in de-risk and drive supply chain diversification. 

ABR eyes US listing 

The update reaffirms the company’s commitment to a strong and successful listing in the US by 2022. ABR believes the broad decarbonisation application of borate will draw attention from environment, social and governance (ESG) focused investors. 

ABR is currently in discussions to advance potential US-based CEOs and CFOs with a view to making appointments in the short term. The company has also initiated engagement with US investment banks focused on equity, debt and driving its US listing. 

Looking ahead 

ABR retains a healthy $59.2 million cash in the bank effective 31 March 2021. The company believes that its cash position by 30 June 2021 will be meaningful. 

With construction deferred, ABR is making an effort to upsize its existing project resource, progress new mine plan options and value-add borate applications. 

The ABR share price is 9.68% lower at the time of writing to $1.54. This weakness is reflected in the 0.50% slump in the S&P/ASX 200 Index (ASX: XJO). 

More reading

• Why a2 Milk, American Pacific Borate, Appen, & Incitec Pivot are tumbling lower
• The ABR (ASX:ABR) share price edges higher in early morning trade
• American Pacific (ASX:ABR) share price sinks 5% as CEO exits

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 5G Networks Ltd (ASX: 5GN) share price has started the day strongly, while most of the ASX is in negative territory. This comes after the company announced the launch of its partner sales channel.

At the time of writing, the telecommunication carrier’s shares are trading at $1.005 apiece, up 2.55%.

Expanded offering

Investors are snapping up 5G Network shares after digesting the company’s latest positive update.

According to this morning’s release, 5G Networks has launched 5GN Wholesale to its Melbourne customers. Both Brisbane and Sydney launches are expected to follow suit in the next few weeks.

The enhanced offering from 5G Networks is set to improve service capability to all managed service providers (MSP) across Australia. As such, customers will have access to the following:

• High-speed data connectivity to international locations in Japan, Singapore, New Zealand, and North America;
• Connectivity services of up to 100 gigabytes;
• IP transit with DDOS capability of over 600 gigabytes; and
• Cloud and bare metal services to create a personal cloud environment.

The latest offering is projected to generate around $10 million in revenue per annum.

Recently, 5G Networks completed a number of development and investment initiatives. These included the acquisition of Intergrid Group, and the integration of ColoAu to accelerate growth of 5G Networks’ digital infrastructure capabilities.

In addition, the company’s wholesale ordering portal, 5GN Wholesale, offers customers speed and flexibility in service delivery.

5G Networks managing director Joe Demase said:

5GN is very excited to be strengthening our partner sales channel with the launch of 5GN Wholesale, we believe the combination of our fibre network and data centre connectivity will allow our wholesale partners significant flexibility and an alternative to the traditional providers

We have been actively investing in our infrastructure footprint and now clearly demonstrate the capability to meet Australia’s accelerating demand for cloud and data centre connectivity.

About the 5G Networks share price

Despite today’s gains, it’s been a rocky start for the 5G Networks share price in 2021. Year-to-date performance has seen the company’s shares largely follow a continuous decline, down almost 30%.

5G Networks presides a market capitalisation of roughly $113 million, with more than 114 million shares on issue.

More reading

• 5G Networks (ASX:5GN) share price jumps 7% on quarterly results

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 5G NETWORK FPO. 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 National Australia Bank Ltd (ASX: NAB) share price has been a poor performer on Thursday.

In late morning trade, the banking giant’s shares are down over 2% to $25.95.

Why is the NAB share price trading lower today?

Although the S&P/ASX 200 Index (ASX: XJO) is under pressure today and tumbling lower again following a disappointing night of trade on Wall Street, that isn’t the reason for the weakness in the NAB share price.

The real reason for today’s weakness is that this morning the bank’s shares traded ex-dividend for its upcoming interim dividend.

When a share trades ex-dividend, it means that the rights to an impending dividend payment are no longer available to new buyers. In light of this, a share price will usually drop in line with the value of the dividend to reflect this.

The NAB dividend

Earlier this month, NAB released its half year results and reported cash earnings of $3,343 million for the six months ended 31 March. This was up 94.8% on the prior corresponding period. It was also a 35.1% increase if you exclude large notable items.

This return to form allowed the bank’s board to declare a fully franked interim dividend of 60 cents per share. This was double last year’s interim dividend and represents a 2.3% yield based on its current share price.

What’s next?

After going ex-dividend today, eligible shareholders can now look forward to receiving this dividend in their bank accounts in just over seven weeks on 2 July.

Interestingly, despite the market weakness today, the NAB share price would actually be trading a fraction higher if it were not going ex-dividend.

At the time of writing, the NAB share price is down 59 cents to $25.95, which compares to the 60 cents per share fully franked dividend it will soon be rewarding shareholders with.

More reading

• What do the CEOs of the Big Four banks think of the Federal Budget?
• Which ASX bank share is the cheapest after earnings?
• Does the NAB (ASX:NAB) share price offer a 7% dividend yield?
• 2 excellent ASX dividend shares to buy
• NAB (ASX:NAB) share price lower despite 86 400 acquisition update

Motley Fool contributor James Mickleboro 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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Australia’s top brokers have been busy adjusting their estimates and recommendations once again. This has led to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Carsales.Com Ltd (ASX: CAR)

According to a note out of UBS, its analysts have retained their buy rating and $24.50 price target on this auto listings company’s shares. This follows news that the company is acquiring a 49% stake in US online marketplace Trader Interactive. The broker appears supportive of the acquisition. However, it intends to do more analysis before updating its financials and recommendation further. The Carsales share price was fetching $19.51 prior to its trading halt.

Estia Health Ltd (ASX: EHE)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this aged care operator’s shares to $3.15. The broker notes that the aged care sector is set to benefit from additional funding following the Federal Budget. In addition to this, it likes Estia Health ahead of its rivals due to its strong balance sheet and attractive valuation. Macquarie estimates that Estia Health’s shares are trading at ~17x FY 2022 earnings. The Estia Health share price is trading at $2.56 today.

REA Group Limited (ASX: REA)

Analysts at Morgan Stanley have retained their overweight rating and $175.00 price target on this property listings company’s shares. The broker has been looking at the Federal Budget and sees a few positives for REA Group. Outside this, the broker continues to believe REA Group is well-placed for earnings growth thanks to a rebound in Melbourne and Sydney listings and higher property churn. The latter is being driven by people rethinking where they want to live following the pandemic. The REA Group share price is fetching $149.82 this morning.

More reading

• ASX 200 drops again, Pushpay rises, CSR climbs
• ASX aged care shares boosted after 2021 Federal Budget
• Why Afterpay, CSR, Electro Optic Systems, & Estia Health are storming higher
• Carsales (ASX:CAR) share price halted to raise funds for major US acquisition
• Why a2 Milk, Afterpay, Nearmap, & REA Group shares are sinking

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited and REA Group 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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Tilt Renewables Ltd (ASX: TLT) shares are edging higher this morning following the release of the company’s annual full-year results. At the time of writing, the Tilt Renewable share price is trading 0.67% higher at $7.46. 

The standard financial year for Tilt’s home country, New Zealand, runs from 1 April to 31 March. Hence, we’re seeing annual full-year results from Tilt Renewables at the time ASX watchers might be expecting to see companies report their third-quarter results.

Let’s take a closer look at the year that’s been for the renewable energy company.

How has Tilt been performing?

The Tilt Renewables share price is in the green this morning despite the company delivering a weaker performance than the prior corresponding period (pcp). 

The company reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of $74.9 million – 36% less than the 2020 financial year.

It also brought in 25% less income throughout the 2021 financial year, with $128.3 million in revenue.

That figure brought the company’s earnings per share down from $1.17 in the pcp to 16.7 cents in the 2021 financial year.

Tilt’s after-tax profit was also bleaker than the previous period. It was down 86% to $67 million — a long way from last financial year’s after-tax profit of $478.4 million.

In positive news, Tilt expressed confidence in its debt position, highlighting it has enough cash to run its operations for the foreseeable future.

Tilt had 29% gearing as of the end of March, with no debt refinancing required until 2023. The company stated this leaves it with the debt headroom and flexibility to support its development pipeline.

Tilt’s current assets are valued at around $371.5 million, with approximately $155 million of that being cash in the bank. According to the company, this is more than enough to fund its Rye Park Wind Farm or other growth options if approved by its board.

Other news

The 2021 financial year was far from uneventful for Tilt Renewables. In fact, the company has made some major changes.

Perhaps the most significant is its proposed acquisition by PowAR and Mercury NZ Ltd (ASX: MCY). Under the acquisition, PowAR will take over Tilt’s Australian business and Mercury will assume control of its New Zealand operations. The acquisition is set to be finalised in August 2021 and will see Tilt shareholders receive NZ$8.10 per share.

Tilt completed construction of its Waipipi Wind Farm in March 2021. It now has three ongoing projects in New Zealand.

It’s also on its way to complete commissioning activities at its Dundonnell Wind Farm in Australia by the end of this year. Tilt is working towards an investment decision for its Rye Park Wind Farm, as well as developing another three projects in Australia.

Tilt created 1,840 gigahertz of energy over the year, with Waipipi and Dundonnell contributing 40% that.

Tilt Renewables share price snapshot

The Tilt Renewables share price has been performing well on the ASX lately, rising by around 24% year to date. It’s also gained more than 130% since this time last year.

The renewable energy company has a market capitalisation of around $2.79 billion, with approximately 377 million shares outstanding.

More reading

• AGL Energy (ASX:AGL) share price hits 52-week low
• What’s been happening with ASX renewable energy shares lately?
• Why the Tilt Renewables (ASX:TLT) share price is in focus

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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