The Zip Co Ltd (ASX: Z1P) share price is having a bit of a mixed day on Tuesday.

In early afternoon trade, the buy now pay later (BNPL) provider’s shares are back in the blavk and up 1% $7.17.

Why is the Zip share price bouncing around?

The Zip share price appears to have come under a little bit of pressure today following a mixed reaction to its expansion announcement on Monday.

In case you missed it, Zip has announced that it is expanding into the European and Middle East markets via the acquisitions of established player in both markets.

In Europe, Zip will acquire the shares it doesn’t already own in Twisto Payments for 89 million euros (~A$140 million). Whereas in the Middle East, the company is acquiring the shares it doesn’t already own in UAE-based Spotii for US$16 million (~A$21 million). This will give Zip access to a $1.1 trillion annual ecommerce market in Europe and a Middle East market that is growing fast.

The acquisition of Spotii is expected to complete in the third quarter of calendar year 2021, whereas the Twisto acquisition is expected to complete in the fourth quarter.

What was the reaction?

Analysts at UBS have been running the ruler over Zip’s plans and sees both positives and negatives.

According to the note, the broker wasn’t surprised with the acquisitions and acknowledges that the two markets provide the company with significant growth opportunities.

However, it believes the businesses will require significant amounts of capital in order to scale.

Its analysts commented: “While the potential total addressable market for both businesses is large, both businesses are relatively early stage, we also highlight the capital intensity of both businesses if they are to scale.”

This could mean that another capital raising will be required in the not so distant future in order to grow these businesses.

Unfortunately, as we have seen previously with the Zip share price, capital raising speculation often weighs on investor sentiment and could potentially limit the upside from here for the time being.

More reading

• ASX 200 up, Zip rises, Aristocrat Leisure reports
• Is the Zip (ASX:Z1P) share price in the buy zone?
• Why Corp Travel, Domino’s, Kogan, & Zip shares are storming higher
• ASX 200 up 0.1%: Aristocrat results, Zip’s global expansion continues
• Zip (ASX:Z1P) share price higher on European and Middle East expansion news

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. The benchmark index is currently up 0.6% to 7,089.6 points.

Here’s what is happening on the market today:

TechnologyOne half year results

The TechnologyOne Ltd (ASX: TNE) share price is having a mixed day following the release of its half year results. At one stage in morning trade, the enterprise software company’s shares were up as much as 9%. They have since pulled back and are now trading flat. Strong demand for its Global SaaS ERP Solution underpinned a 5% increase in total revenue to $144.3 million and a 48% increase in net profit to $28.2 million. However, full year profit growth is expected to be 10% to 15%.

Iron ore miners rise despite pullback

Iron ore producers BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) are all pushing higher today despite another pullback in the price of the steel making ingredient. According to Metal Bulletin, the spot iron ore price fell a further 4.1% to US$192.42 a tonne. Each of the mining giants are outperforming the market today with gains of at least 1%.

Aristocrat Leisure rated as a buy

The Aristocrat Leisure Limited (ASX: ALL) share price is pushing higher after several brokers responded positively to its half year results yesterday. One of those was Citi, which retained its buy rating and lifted its price target to $46.60. Also remaining positive was UBS, which has held firm with its buy rating and lifted its price target to $44.40.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Galaxy Resources Limited (ASX: GXY) share price with a 4% gain. This is despite there being no news out of the lithium miner. The worst performer has been the Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price with a 3% decline. Investors may be nervous ahead of its full year results release later this week.

More reading

• TechnologyOne (ASX:TNE) share price on watch after reporting strong first half growth
• 4 ASX shares every investor should consider adding to their portfolio: fundie
• Is the Aristocrat Leisure (ASX:ALL) share price in the buy zone after its results?
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 up, Zip rises, Aristocrat Leisure reports

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The Doctor Care Anywhere Ltd (ASX: DOC) share price is racing higher today following a new agreement with Nuffield Health.

Founded in 1957, Nuffield Health is the largest not-for-profit healthcare organisation in the United Kingdom. The group operates 31 hospitals, 113 health fitness and wellbeing gyms, and over 200 workplace wellbeing services.

At the time of writing, Doctor Care Anywhere shares are fetching for 91 cents, up 11.73%.

What’s driving the Doctor Care Anywhere share price higher?

Doctor Care Anywhere shares are lifting off today as investors appear upbeat about the company’s prospects.

According to its release, Doctor Care Anywhere advised it has signed a Head of Terms with Nuffield Health.

A Heads of Terms is a non-binding document that outlines the details of a proposed agreement. This can include a tentative sale, partnership, or other arrangement. Traditionally, a Head of Terms consists of target completion date, pre-conditions to the agreement, and the parties’ key obligations.

Under the Head of Terms, Doctor Care Anywhere will develop a digitally integrated virtual and in-person primary care service for Nuffield Health. The platform will allow patients to have access to Doctor Care Anywhere’s 24/7 virtual general practitioner service. In addition, users can also tap into Nuffield Health’s nationwide network of face-to-face general practitioners.

The all-in-one digital platform aims to be the first nationally integrated primary care proposition in the United Kingdom. It is estimated that over 70% of all primary care consultations can be conducted over virtual appointment. However, with integration of the in-person service, this enables patients to choose how, when and where they access primary care. Furthermore, the platform provides an expanded offering of other clinical services which can be booked, reviewed and followed up on.

The platform is expected to be launched sometime in Q4 2021. Pre-marketing to Nuffield Health’s network of 1,600 corporate clients is anticipated to begin as soon as possible.

Doctor Care Anywhere noted that it will announce more details to the ASX when the contract is signed.

Management commentary

Nuffield Health medical director, Dr Davina Deniszczyc welcomed the collaboration, saying:

We are delighted to be strengthening our partnership with Doctor Care Anywhere to offer customers access to a national network of virtual and face-to-face GPs. The pandemic has demonstrated the need for accessible health services and through this partnership we are now able to offer everyone the choice of how they access their GP, whenever they need to.

Doctor Care Anywhere founder and CEO, Dr Bayju Thakar added:

We’re very excited to be providing the first joined-up healthcare journey of this kind in the UK and to be deepening our partnership with Nuffield Health. This new collaboration, the first joined up service of its type in the UK, will bring the benefits of digital healthcare to the face-to-face primary care setting and allow individuals more control over how, where and when they choose to access primary care services.

This represents a true shift in how healthcare can and should be delivered on a national scale and at a time when there is huge pressure on primary care systems across the UK offers real improvements in terms of convenience, cost and quality of the care experience.

Despite today positive release, the Doctor Care Anywhere share price has fallen around 25% year-to-date.

More reading

• Why Doctor Care Anywhere, Next Science, NIB, & Talga are charging higher
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The Carbon Revolution Ltd (ASX: CBR) is careening to a 14-month low this morning after it issued a profit downgrade.

The irony is that the surge in car sales is leaving the composite wheel maker behind in the dust, and you can thank COVID-19 for that.

The Carbon Revolution share price crashed 13.5% to $1.34 at the time of writing. The fall is on top of yesterday’s 5.5% tumble – all of which came right at the market close.

Cardon Revolution share price is a wreck

This is because management released the disappointing news a few minutes before 4pm. It revealed that one of its major customers have suspended vehicle production due to the shortage of computer chips.

As a result, Carbon Revolution believes it will sell around 1,800 fewer wheels this financial year compared to FY20.

Management had previously forecast selling around the same number of wheels in FY21 as last year.

The customer in question is expected to restart its production line in late June.

Carbon Revolution share price in the slow land

The world-wide shortage of semi-conductor chips is driving up the price of vehicles around the world, including Australia.

The shortage of new vehicles has been met head-on with strong demand for cars. Consumers who can’t travel and have limited alternative uses for their savings are spending big on new wheels.

The federal government is also pumping fuel into the tank. The extension of the instant tax write-off is also adding to demand for new vehicles.

ASX shares benefiting from car shortages

This is great news for the likes of the Eagers Automotive Ltd (ASX: APE) share price and Autosports Group Ltd (ASX: ASG) share price.

The lack of supply means car dealers do not have to offer discounts on new vehicles and can charge more for second hand vehicles that are ready for immediate delivery.

Auto parts makers are also smiling. The Bapcor Ltd (ASX: BAP) share price and ARB Corporation Limited (ASX: ARB) share price have also been outperforming over the past year.

Foolish takeaway

The supply chain dislocation is creating winners and losers in the auto industry. New car manufacturers and their suppliers are suffering, while dealers are revving up their engines.

But at least the headwind is temporary. It’s a question of “when” and not “if” supply chains normalise to give the Carbon Revolution share price a chance to play catch-up.

On the other hand, the road to recovery could be a winding one. Just look at the ongoing impact of COVID-19 even when vaccines are being rolled out. Ask anyone in Victoria.

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The BPH Energy Ltd (ASX:BPH) share price is rising this morning after the company released more news of the Baleen gas prospect.

The BPH Energy share price is up 7.78% to 9.7 cents at the time of writing.

What did BPH Energy announce today?

BPH Energy advised that its investee company, Advent Energy Ltd, has appointed Xodus Group to prepare a submission for the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

BPH Energy holds a 26% stake in Advent Energy. Advent Energy’s major shareholders also include MEC Resources Limited (ASX: MMR) and the de-listed Grandbridge Limited.

Xodus will prepare an environmental plan for activities at the Baleen prospect to be presented to NOPSEMA.

Let’s take a closer look at today’s news.

Next step forward

Before the Baleen prospect can begin, it must receive the go-ahead from NOPSEMA.

NOPSEMA must assess a company’s health, safety, and environmental plans before any offshore petroleum or greenhouse gas storage activities can begin.

Last week, the BPH Energy share price soared when the company announced there’s a high likelihood of striking gas at the Baleen prospect.

The company also hopes to use the site for carbon capture and storage, which could see it receiving Federal Government incentives.

The Baleen prospect is found within offshore licence PEP-11 ­– located off the coast of Newcastle.

PEP-11 is to be developed as a joint venture between Advent Energy and Bounty Oil & Gas NL (ASX: BUY). Advent holds 85% of the licence, while 15% is held by Bounty.

Xodus has been appointed under a lump sum contract. The cost that Advent Energy will pay Xodus to prepare the environmental plan is yet to be disclosed.

BPH Energy share price snapshot

The BPH Energy share price is having a fantastic 2021 on the ASX.

Currently, it is up 142% year to date. It has also gained 870% since this time last year.

The company has a market capitalisation of around $59 million, with approximately 664 million shares outstanding.

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The Viva Leisure Ltd (ASX: VVA) share price is climbing today following an update on its trading performance and FY21 outlook.

At the time of writing, health club operator’s shares are swapping hands for $1.94, up 0.52%.

Let’s take a closer look and see what the company updated the ASX with.

Performance update

Investors are pushing Viva Leisure shares higher after the company released a positive update.

In its presentation, Viva Leisure announced an improvement across the business due to the gradual recovery from the COVID-19 pandemic.

As a result, the business noted that all comparisons made below are against its December half-year result. This is because comparing against 12 months ago is not an accurate reflection on business growth.

For the period until April 2021 (first 4 months of 2021), monthly revenue run rate (RRR) jumped to $8.1 million. This represents a 11.4% increase on its December half-year results. All of Viva Leisure’s facilities were re-opened as of January 2021, highlighting a return of members.

In addition, the company managed to also grow its member base to 295,808 members, a lift of 8% on H1 FY20. Viva Leisure’s continued expansion into new locations increased to 306. This figure is up from 296, which contributed to the improved result.

Revenue surged above $8 million. This is a 58% jump when comparing this month against March 2020, before COVID-19 hit. Particularly, the ACT region was the biggest contributor to the overall scorecard, accounting for roughly 45%.

FY21 outlook

Looking ahead, Viva Leisure stated that it is targeting revenue to range from $81 million to $83 million. Over H1 FY21, this is a 25.6% to 31.2% growth.

Furthermore, earnings before interest, tax, depreciation and amortisation (EBITDA) is estimated to come between $13 million to $13.5 million. This reflects a 32.1% to 41.1% increase on the December half-year result. EBITDA margin is also set to jump around 16.5% to 17.5%.

About the Viva Leisure share price

The Viva Leisure share price is down close to 20% over the past 12 months. It’s worth noting that its shares plunged to a low of 1.825 due to market slump this month.

Based on the current share price, Viva Leisure commands a market capitalisation of roughly $158 million.

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The CSL Limited (ASX: CSL) share price is pushing higher on Tuesday morning.

At the time of writing, the biotherapeutics giant’s shares are up 1% to $292.00.

Why is the CSL share price rising today?

The CSL share price was given a boost by a broker note out of the Macquarie Group Ltd (ASX: MQG) equities desk this morning.

According to the note, the broker has retained its outperform rating and $312.00 price target on the company’s shares.

This price target implies potential upside of approximately 7% over the next 12 months.

What did Macquarie say?

Macquarie has been leveraging Google data to track foot traffic at the company’s network of plasma collection centres during the pandemic.

Positively, the latest data indicates that foot traffic has now risen to the highest level since Macquarie began tracking it. This coincides with a reduction in new COVID-19 cases in the US and the successful rollout of vaccines across the country.

Macquarie’s analysts believe this improving collections data is supportive of its immunoglobulin revenue and earnings growth forecasts.

In addition to this, the broker notes that CSL’s new plasmapheresis platform, which is being developed with Terumo Blood and Cell Technologies, has the potential to lift yields meaningfully.

The broker believes the innovative plasma collection platform could increase yields by 10% per donation in the future, which would give its gross profit a big boost if granted regulatory approval.

Who else is bullish?

Macquarie isn’t the only broker that is positive on the CSL share price. A number of other brokers also have the equivalent of buy ratings on its shares.

For example, Credit Suisse has an outperform rating and $315.00 price target on its shares and UBS has a buy rating and $330.00 price target.

The latter implies potential upside of 13% for the CSL share price over the next 12 months.

More reading

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• 2 five-star ASX shares that analysts love

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Do you have some money to invest into some ASX shares? This article is about two ideas that could be interesting options.

Businesses that are seeing underlying growth of demand might be able to produce profit growth over the longer-term.

Kogan.com Ltd (ASX: KGN)

Kogan is a leading e-commerce ASX share that sells a wide variety of items and products.

Its website sells things like TVs, computers, phones, drones, appliances, heating and cooling, home and garden items, furniture, office supplies, toys, video games, clothes, sports gear, tools, books, alcohol and grocery items.

Kogan also offers a number of services including mobile, internet, energy, credit cards, insurance, pet insurance, life insurance, travel, cars, superannuation and home loans.

The business has a growing number of customers, including Kogan First members. Those members get free shipping, discounts and priority customer service.

The Kogan share price has declined by around a third over the last three months.

Kogan has been telling the market about its inventory problems and that its rapid growth has led to near-term supply chain inefficiencies.

To sort out its excess inventory, the ASX share is spending more on marketing and increasing its promotional activity. However, the demurrage issue that it has been facing has been resolved.

Customer demand in April 2021 remained consistent with the levels seen in the three months to March 2021, and below the levels seen in the nine months to December 2020. The quarter ending 31 March 2021 saw gross sales growth of 47% with gross profit increasing 54%.

Kogan says the longer-term fundamentals remain very attractive with online sales only accounting for a small percentage of total retail sales in Australia and New Zealand.

According to Commsec, the Kogan share price is valued at 17x FY23’s estimated earnings.

Betashares Global Cybersecurity ETF (ASX: HACK)

This ASX share is an exchange-traded fund (ETF) that is focused on the world’s leading cybersecurity companies.

As BetaShares points out, governments, companies and households around the world are facing a tougher fight against cyber criminals who want to steal information or disrupt their IT related activities. Cybersecurity is increasingly important as more of the global economy heads online.

There are more devices online and it’s an arms race for cybersecurity businesses.

Global spending on cybersecurity has increased at an annual rate of around 8% since 2011. Major public and private organisations continue to spend more on cybersecurity. The global cybersecurity market is expected to be worth $203 billion in 2021 and $248 billion in 2023.

Most of the portfolio is invested in US shares, though there is a weighting of just over 3% to Israel and the UK.

The ASX share has around 40 holdings, with the current biggest 10 being: Cisco Systems, Accenture, Crowdstrike, Zscaler, Splunk, Proofpoint, Fortinet, Akamai Technologies, Fireeye, Juniper Networks.

Despite the annual management fee of 0.67% per annum, Betashares Global Cybersecurity ETF has delivered an average return per annum of 19.5% since inception in August 2016.

More reading

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

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

What happened

Shares of electric car company Tesla (NASDAQ: TSLA) surged higher on Monday. Shares were up about 5.7% as of 3:30 p.m. EDT.

The growth stock’s gain was fueled both by a bullish day in the stock market and news that Tesla has reportedly entered into an agreement with Luminar Technologies (NASDAQ: LAZR) for testing and development of Luminar’s laser-sensor technology.

So what

Highlighting why the overall market likely helped Tesla stock’s gain on Monday, the Nasdaq Composite was up more than 1.6% as of this writing – and many growth stocks like Tesla were up several percentage points or more.

Meanwhile, news that Tesla is reportedly open to testing the laser-sensor technologies for autonomous driving that CEO Elon Musk has previously heavily criticized may have investors more confident in the company’s long-term self-driving technology roadmap.

Though Tesla stock is up today, it’s still down about 14% year to date and 32% below its 52-week high.

Now what

Given the stock’s enormous run-up last year and its recent sharp decline, there’s likely plenty of volatility ahead for Tesla stock.

Investors, however, should remain focused on the company’s underlying business. Though Tesla’s sales are growing rapidly, the company is still heavily dependent on sales of zero-emission vehicle credits for much of its profitability. But management believes Tesla is on a path to eventually achieve industry-leading operating margins.

 

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

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

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The Aroa Biosurgery Ltd (ASX: ARX) share price is on the move on Tuesday morning.

At the time of writing, the soft-tissue regeneration company’s shares are up 1.5% to $1.20.

Why is the Aroa Biosurgery share price rising?

Investors have been buying the company’s shares this morning following the release of a better than expected full year result.

For the 12 months ended 31 March, Aroa reported product sales of NZ$21.6 million. While this was down 2% year on year, it exceeds the company’s guidance of NZ$21 million.

Things were better on a constant currency basis, with product sales coming in at NZ$23.1 million. This would have been a 5% increase on the prior corresponding period.

On the bottom line, Aroa reported a normalised loss before income tax of NZ$7.4 million. This compares to a loss of NZ$3.9 million in FY 2020.

Management was pleased with the result, particularly given how COVID-19 headwinds in the US significantly impacted procedure volumes.

Outlook

Pleasingly, management believes the company is well-placed as it enters into FY 2022.

In light of this, the company expects its FY 2022 product sales to grow 39% to 53% to between NZ$30 million and NZ$33 million.

This is based on a NZD/USD exchange rate of US$0.72 and is subject to no resurgence of COVID-19 in the United States, its US sales and marketing distributor TELA Bio delivering strong growth, and continued improvement in US medical procedure numbers.

However, as a result of an increased investment into its sales force, its operating earnings will be negative.

Aroa’s Founder and CEO, Brian Ward, said: “We believe that supported by our newly expanded fully dedicated sales team, Aroa is poised to continue to grow strongly this year by ramping up Myriad sales and penetrating into further accounts.”

“With the growing body of evidence to validate the clinical efficacy of Myriad, we expect Myriad will not only help deliver strong growth in FY22, but it will also underpin growth in the medium term. We anticipate FY22 will be a set-up year for Symphony, which will ramp up in FY23 to deliver a further wave of growth. Symphony has the potential to significantly add to our existing Endoform business in the outpatient wound centre setting.”

“We are pleased to have completed the recent sales transition from Appulse and with an expanded product portfolio, we consider Aroa is well placed to grow in the emerging post-COVID-19 healthcare environment, where clinical performance and value will come under increasing scrutiny. Aroa’s products are designed to improve clinical outcomes at a cost that improves patients’ access to the benefits of biologics, and to drive better healing. We are focused on unlocking regenerative healing for everybody,” he concluded.

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