The Ardent Leisure Group Ltd (ASX: ALG) share price is sliding today despite announcing plans to redevelop its Dreamworld Resort.

At the time of writing, the entertainment company’s shares are fetching for 79 cents, down 1.25%.

Dreamworld eyes comeback

Ardent Leisure shares have failed to take off as investors shrug off the company’s $75 million injection into Dreamworld Resort.

According to this morning’s release, Ardent Leisure advised it has entered into a non-binding agreement with accommodation developer, Evolution Group.

A family-run company, Evolution Group has built over 2,200 rooms around Australia through resorts and also accommodation houses.

The deal will see Evolution Group build an accommodation precinct on part of the unused land owned by Ardent Leisure. The area is conveniently situated adjacent to the Dreamworld theme park.

The accommodation will consist of a 4-star 250 room resort-style hotel, 40 bungalows, and a 5-star tourist park with 100 powered sites.

Ardent Leisure stated that the new facilities will be designed to cater for all guests, especially interstate travellers.

Within the complex, visitors will have access to family accommodation options, restaurants, conference rooms, swimming pools, and a gymnasium.

The agreement is subject to a number of customary preconditions to be met before works begin.

Comments from management

Dreamworld CEO, Greg Young welcomed the new partnership, saying:

The hotel and tourist park will complement Dreamworld as a premium entertainment destination and add a new level of convenience for guests who will have our theme park and water park on their accommodation’s doorstep.

This announcement is another positive step in the recovery of our parks post-COVID and will have a significant economic impact not only for Dreamworld, but also for the northern Gold Coast, one of Australia’s fastest growing regional corridors.

Evolution Group, John Robinson Jr went on to add:

We are incredibly excited to be taking these first steps with the Dreamworld team and we are looking forward to work collaboratively to deliver guests a range of high-quality accommodation options.

Ardent Leisure share price review

Ardent Leisure shares have performed relatively well over the last 12 months, gaining more than 130%. This is a stark contrast from when the company faced uncertain troubles at the height of the COVID-19 pandemic.

Based on today’s share price, Ardent Leisure presides a market capitalisation of roughly $383 million, with 479 million shares outstanding.

More reading

• Why the Ardent Leisure (ASX:ALG) share price is surging 7%
• The ASX shares brokers think you should be watching

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

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The Telstra Corporation Ltd (ASX: TLS) share price has today broken its 52-week record and printed a new high for the last 12 months. Telstra shares opened at $3.49 this morning after closing at $3.50 yesterday afternoon.

But at the time of writing, Telstra shares have risen 1.86% to $3.57 a share, a new 52-week high. That blitzes its old high watermark of $3.54 that has held since July last year.

So what’s been going so right for Telstra lately? Well, as we’ve flagged recently, the Telstra share price has been on the rise for a while now. The shares are now up around 4% in the past month, more than 17% year to date, and 32% since the start of November last year. So in many ways, today’s move is just an extension of this trend.

The Telstra share price has even managed to shake off a $1.5 million fine. This fine was announced yesterday. It was issued in response to Telstra breaching its customers’ rights to port their phone numbers in the first stages of the pandemic last year.

What has been pushing the Telstra share price to new highs?

Investors have been bullish on Telstra ever since the telco reaffirmed its generous 16 cents per share dividend for 2021 back in October last year. Telstra share shave had a monstrous run over the past several months. Even so, this dividend is still worth a yield of 4.49% on current pricing (or 6.41% grossed-up). That is certainly nothing to sneeze at in this era of near-zero interest rates.

Also supporting the Telstra share price has been its more recent structural separation announcement. Back in March, Telstra announced that it plans on dividing the company into 4 divisions by the end of the year. These will be InfraCo Towers, InfraCo Fixed, ServeCo, and Telstra International. By separating out its valuable infrastructure assets in particular, many investors are hoping that significant value can be unlocked. The market certainly seems to be thinking along these lines, seeing as this announcement has seemed to help push Telstra to its new highs today.

Finally, it’s worth mentioning the announcement that Telstra made just last month. The telco announced that it was spending $277 million on new 5G spectrum rights. The company stated that this purchase would help strengthen Telstra’s already dominant 5G network in Australia. In addition, it also informed investors that its 5G network is on track to cover 75% of the Australian population by the end of June this year.

All of these developments have evidently raised investors opinions of Telstra, and its plans for future growth. Telstra may still be a long way from the kinds of highs investors saw a decade or two ago. But it is a lot closer to those highs today than it has been for a while.

More reading

• Telstra (ASX:TLS) share price edges higher despite record $1.5 million fine
• Why the Telstra (ASX:TLS) share price could be heading higher from here
• 2 quality ASX dividend shares that will help you beat low interest rates
• Why is the Telstra (ASX:TLS) share price rising today?
• ASX 200 Weekly Wrap: Shares have average week but a great month

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. 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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Bank of Queensland Limited (ASX: BOQ) shareholders can rejoice. Over the last 12 months, the regional bank’s share price has the big four banks’ beat. Since this time last year, the Bank of Queensland share price has gained a massive 95%. Currently, the bank’s shares are swapping hands for $9.11 apiece. 

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 32% in the same time frame. Of the big fours’ share prices, the largest increase came from Australia and New Zealand Banking Group Ltd (ASX: ANZ). The ANZ share price has gained 72% over the past year.

Let’s take a look at what’s been driving the growth of the Bank of Queensland share price these last 12 months.

What’s been happening to the Bank of Queensland share price?

The bank’s share price growth over the past year came after a tough start. On 14 May 2020, Bank of Queensland shares hit their lowest point in 20 years – dropping to $4.51 in intraday trading.

Fortunately, this left the company with plenty of room to grow. Despite a series of bad news updates, the bank’s share price grew around 45% by the time its FY2020 full-year results were released in mid-October 2020.

Some of this bad news included the bank’s quarterly APRA Basel III Pillar 3 report for the period ending 31 May 2020. It showed the bank was faced with $112 million worth of loans overdue by more than 90 days during the fourth quarter of the 2020 financial year.

Further, in September, Bank of Queensland reported it had completed its collective provision modelling for the 2020 financial year and expected the year’s loan impairment expense to be $175 million.

The bank also announced an $11 million expense resulting from a review of historical employee underpayments and missing entitlements.

2020 financial year results

On 14 October, Bank of Queensland released its full-year results for the 2020 financial year.

For the 12 months ended 31 August 2020, the bank reported cash earnings of $225 million. That was 30% less than the previous financial year. While less than previous periods, this was better than the market’s expectations.

The bank also declared a full-year 12 cents per share fully franked dividend.

2021 so far

The 2021 financial year has been a good one so far for Bank of Queensland.

It began positively, with the bank reporting it was on track to deliver on the outlook provided in its full-year results

Then, in February this year Bank of Queensland announced it had agreed to acquire Members Equity Bank (ME Bank) for around $1.3 billion in cash. The acquisition was to be funded by an underwritten capital raising.

The following day, the bank announced its first successful capital raise of $673 million. On 15 March, Bank of Queensland announced it has completed the retail component of its underwritten pro-rata non-renounceable entitlement offer, which was the last stage of the bank’s equity raising.

Half-year results

The bank released its results for the first half of the 2021 financial year on 15 April. 

Within its results, the bank reported a 9% increase in cash earnings after tax to $165 million. The increase was driven by balance sheet growth, improved net interest margin, disciplined expense management, and lower loan impairment expense. The news didn’t stop the Bank of Queensland share price from sliding 0.79% lower on the day of the release.  

Its board also declared a 17 cents per share interim dividend and provided positive outlook commentary.

Management appeared optimistic and noted the economic outlook was showing signs of continued improvement. In light of this, the bank was guiding to a solid second-half performance.

Bank of Queensland share price snapshot 

The regional bank is now one of the best performing banks on the ASX over the last 12 months.

Its 2021 has also been fruitful – the Bank of Queensland share price has gained around 21% year to date.

The bank has a market capitalisation of around $5.85 billion, with approximately 639 million shares outstanding.

More reading

• Why Accent, Bank of Queensland, Freelancer, & Zip shares are pushing higher
• Why the Bank of Queensland (ASX:BOQ) share price is charging higher today
• Top brokers name 3 ASX shares to buy next week
• Is the Bank of Queensland (ASX:BOQ) share price great value?
• 5 things to watch on the ASX 200 on Friday

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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The Nearmap Ltd (ASX: NEA) share price was in sensational form on Wednesday before being placed in a trading halt.

The aerial imagery technology and location data company’s shares were up 14.5% to $2.36 before the halt.

Why is the Nearmap share price rocketing higher?

The catalyst for the rise in the Nearmap share price on Wednesday was the release of a trading update after the market close yesterday.

That update revealed that the company’s strong performance has continued since the end of the first half.

As a result, management now expects to deliver annual contract value (ACV) of $128 million to $132 million in FY 2021.

This is up from its previous guidance of $120 million to $128 million and represents a 20% to 24% increase on FY 2020’s ACV of $106.4 million.

What about the trading halt?

Late this morning the Nearmap share price was placed in a trading halt at the company’s request.

Management made the request to allow the company time to respond to potential legal proceedings.

Nearmap didn’t provide any colour on what the legal proceedings relate to. However, it is worth noting that earlier this year J Capital appeared to suggest that legal proceedings from Eagleview were in the works.

This is what the short seller wrote:

“Roof reports” form the foundation of 41% of Nearmap’s sales in North America, to the insurance sector. Insurance companies routinely buy these reports to assess claims for damage caused by a weather event like wind or hail. Eagleview appears to be the only company with the technology to produce the reports, following successful legal action against Verisk for patent infringement of its roof-measurement technology in October 2019. Eagleview sells to 47 of the top 50 property and casualty insurers in the US. Nearmap’s 2019 $4.8 mln acquisition of Pushpin was designed to capture a technology for roof measurements that could make Nearmap more competitive in insurance claims.

That technology may infringe on Eagleview patents. According to a former senior manager at Eagleview, lawyers have issued warning letters to insurers. Should Nearmap be challenged, it may be required to pay a royalty to Eagleview, find a different way to do a map, or stop producing roof measurements and roof reports altogether in the US. This would shut Nearmap out of the $120 mln roof-measurement market. We believe Nearmap is required to indemnify insurance customers to make any sales. Not only does Nearmap stand to lose revenue, but it has substantial legal risk from the customers it has indemnified.

Nearmap admitted that it could not provide roof reports without infringing Eagleview’s technology, according to a former salesperson. That salesperson told us that Nearmap could not put in a tender for a U.S. federal government project called “Blue Roof” for post-disaster roofing because of this legal case. The RFP specifically requested roof reports, but the legal team at Nearmap said they could not do that as it infringed Eagleview’s patents. Eagleview has a browser platform where anyone can sign up and immediately purchase a roof report for $30.

Though, this is pure speculation at this point. Investors will need to wait for Nearmap’s response to know for sure.

The Nearmap share price will remain in its halt until the sooner of the release of an announcement or the commencement of trading on Friday.

More reading

• Why Ecofibre, MoneyMe, Nearmap, & Race Oncology shares are storming higher
• ASX 200 jumps 0.7%: ANZ half year results, Nearmap jumps
• 5 things to watch on the ASX 200 on Wednesday
• 2 exciting ASX tech shares that have been tipped as buys
• Nearmap (ASX:NEA) share price on watch after upgrading guidance

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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

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:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of UBS, its analysts have retained their buy rating but cut their price target on this infant formula company’s shares to NZ$15.50 (A$14.38). While the broker acknowledges that it is battling tough trading conditions and has downgraded its near term earnings estimates to reflect this, UBS remains positive on the long term. This is due to a recovery in demand from daigou sellers and market share gains in China. The a2 Milk share price is fetching $7.40 on Wednesday.

CSL Limited (ASX: CSL)

A note out of Macquarie reveals that its analysts have upgraded this biotechnology company’s shares to an outperform rating with an improved price target of $296.00. According to the note, the broker has seen a significant improvement in foot traffic at US plasma collection centres recently. As a result, the broker has upgraded its estimates to reflect the improving trading conditions. The CSL share price is trading at $278.22 this afternoon.

IDP Education Ltd (ASX: IEL)

Analysts at Morgan Stanley have retained their overweight rating and $30.00 price target on this language testing and student placement company’s shares. According to the note, the broker has downgraded its estimates to reflect the COVID-19 crisis in the key Indian market. However, despite these short term headwinds, the broker suspects that the disruption is only strengthening the company’s competitive position. Overall, it believes IDP Education will come out of the pandemic in a much stronger position at the expense of small competitors. The IDP Education share price is trading at $22.13 today.

More reading

• Is it time to give the A2 Milk (ASX:A2M) share price another chance?
• Is the CSL (ASX:CSL) share price in the buy zone after its update?
• 2 fantastic ASX 50 shares rated as buys
• a2 Milk and Zip were among the most traded ASX shares last week
• Why the CSL (ASX:CSL) share price is seesawing over the past month

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 CSL Ltd. and Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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 ASX 200 pushed 0.70% higher on Wednesday to 7,117.  This is within an arms reach of its 7,160 all-time record high. 

Below, we take a look at what is happening in the market to drive this rise. 

What’s driving the ASX 200 to near record highs? 

Banks lifting the market 

The big 4 banks have surged in recent months to beat pre-COVID levels. This has been supported by a broad range of factors including a roaring property market, rebounding economy, and significant decline in loan impairments and bad debts. The ASX 200 is heavily concentrated towards banks, with the financial services sector contributing to 27.9% of the overall ASX 200. 

Today, Australia and New Zealand Banking Grp Ltd (ASX: ANZ) delivered its half-year results which further reiterate the narrative of an improved economic outlook. Despite the ANZ share price sliding 2%, the company delivered a 45% increase in statutory profit after tax to $2,943. Additionally, ANZ had a 28% increase in cash earnings from continuing operations of $2,990 million. 

Iron ore lifts miners to record highs 

Record iron ore prices have pushed the share prices into record territory. In particular, BHP Group Ltd (ASX: BHP), Fortescue Metals Group Ltd (ASX: FMG), and Rio Tinto Limited (ASX: RIO) have benefitted from this.

Iron ore prices have defied bearish expectations. Furthermore, they have continued to be bolstered by strong global steel demand and Chinese steel production, weak iron ore production from Brazil, and lower end of guidance ranges for Australian producers. 

The materials sector accounts for approximately 20% of the ASX 200. The S&P/ASX200 Materials (INDEXASX: XMJ) has already managed to pop a new record high before the broader market. 

What about other sectors 

Banks and miners have been the main drivers for the broader market. Other sectors that have also shown improvement include consumer discretionary, industrials, and technology.  Respectively, these account for 8%, 7.4%, and 4.5% of the ASX 200. 

Elsewhere, sectors such as healthcare and consumer staples have had relatively flat 12-month performances. This can be attributed to the recent normalisation in in-home consumption and demand for COVID-19 related equipment, which has seen these sectors give back returns achieved last year. 

More reading

• These ASX uranium shares are surging this year. Here’s why
• Here’s how much ANZ’s (ASX:ANZ) dividend is worth now
• ASX 200 jumps 0.7%: ANZ half year results, Nearmap jumps
• ANZ (ASX:ANZ) share price on watch after reporting $2.9bn half year profit
• 5 things to watch on the ASX 200 on Wednesday

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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Specialised ASX uranium shares are having a bumper start to 2021. For example, Paladin Energy Ltd (ASX: PDN), Boss Energy Ltd (ASX: BOE), and Deep Yellow Limited (ASX: DYL) are currently trading around 93%, 79%, and 57% higher, respectively, since the first trading day of the year.

The only exception is Energy Resources of Australia Ltd (ASX: ERA), an ASX-listed company 68% owned by Rio Tinto Limited (ASX: RIO). This company shut down its only uranium operation, the Ranger Uranium Mine, in January this year. Subsequently, its share price has decreased by around 35% in 2021.

So, why are shareholders of operating ASX uranium miners seeing an incredible return on investment (ROI) in 2021? Let’s take a look.

Uranium and green energy

Nuclear power is a zero-emissions generator. According to the website Trading Economics, it’s being increasingly considered by governments such as the United States and China for the transition to clean energy.

Other elements are also seeing increasing demand because of the green revolution, including lithium, copper, and platinum group elements. Uranium, however, is a much more controversial option in green energy production than others.

Uranium is currently trading on the commodities market for US$30.90 per pound. While it’s only 0.65% higher this year, experts are predicting lower supply and increasing demand will see its price rise further.

The radioactive element entered a rut in the market after the Fukushima nuclear disaster. Its price has still not recovered to the levels seen before the accident.

Arguably, optimism surrounding the increasing acceptance of nuclear energy is one reason ASX uranium shares are doing so well this year.

Uranium production in Australia

Demand is only one side of the uranium equation. The other, of course, is supply. There are only two operating uranium mines in the country presently, the BHP Group Ltd (ASX: BHP) owned Olympic Dam mine and General Atomic’s Beverley and Four Mile mine. Both mines are in South Australia.

Yesterday, Boss Energy announced it had all the permits necessary to resume operations at its Honeymoon uranium mine. The news sent ASX uranium shares rocketing. Boss Energy increased 29%, Paladin went up 19%, and Deep Yellow was 7.2% higher.

Even Energy Resources, which has no current operations, increased 2.4% yesterday. The glow of the Honeymoon news radiated onto other nuclear shares. Investors seemingly felt optimistic Australia may ramp up production of uranium into the future and that government is more ready to approve such projects.

ASX uranium shares’ recent history

As of writing, ASX uranium shares are having a so-so day. The Paladin share price is 0.53% higher, Energy Resources shares are flat, Boss Energy is down 13.5%, and the Deep Yellow share price is also flat.

But it could be argued that the rise in the value of these shares over 2021 is not a mere blip. Each one is significantly higher than it was 12 months ago. Paladin is up by around 359%, Boss Energy is 172% higher, and Deep Yellow is around 183% greater. Even Energy Resources is up 19% on this time last year.

The market capitalisations of Paladin, Boss Energy, and Deep Yellow are around $1.25 billion, $456 million, and $241 million, respectively.

More reading

• Is the Transurban (ASX:TCL) share price a buy for dividends?
• The ASX’s China problem is getting worse… and quickly
• The Boss Energy (ASX:BOE) share price is up 16% today. Here’s why
• Deterra (ASX:DRR) share price outperforms on royalty update
• ASX miners set for tough start even as commodity premiums hit a 14-year high

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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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.

Big tech is getting even bigger.

The FAANG group of stocks crushed earnings across the board this quarter, showing that dominant tech companies are only getting stronger as the economy revs up into the post-COVID era.

All of these giants posted results that were much better than analyst estimates (although Netflix missed expectations on a key subscriber growth metric). The chart below shows how their earnings-per-share (EPS) results compared with expectations.

Company	EPS Result	EPS Estimate	Surprise
Facebook (NASDAQ: FB)	$3.30	$2.37	39%
Apple (NASDAQ: AAPL)	$1.40	$0.99	41%
Amazon (NASDAQ: AMZN)	$15.79	$9.54	66%
Netflix (NASDAQ: NFLX)	$3.75	$2.97	26%
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG)	$26.29	$15.82	66%

Source: Yahoo! Finance.

It’s remarkable that companies as big as this quintet, which together make up more than $6.73 trillion in market value, were able to beat Wall Street expectations by so much. The chart above represents more than $10 billion in unexpected profits in just a single quarter. That’s more than all but a handful of companies make in a year.

The results show that these companies are stronger than ever, but they’re actually even more profitable than they look.

Get to know GAAP

All of the FAANG stocks report earnings according to generally accepted accounting principles (GAAP), which is required by the SEC. All companies report GAAP results, but most other publicly traded companies provide an additional adjusted profits figure, which becomes the benchmark for the stock. FAANG stocks don’t do this. Their profits are based on GAAP and include expenses like share-based compensation that other companies make disappear by instead emphasizing measurements like adjusted EPS or EBITDA.

To get an idea of how profitable the FAANG group is, compare them to the next wave of tech stocks that have gained fanfare recently.

Tesla (NASDAQ: TSLA), the fast-growing leader in electric vehicles, reported $438 million in GAAP profits, or $0.39 per share in its first quarter, and $1.05 billion in non-GAAP profits, or $0.93 per share. Adjusted EBITDA was even higher at $1.84 billion. There’s a significant difference between the three profitability marks Tesla gives. $614 million in share-based compensation accounts for the difference in between GAAP and non-GAAP earnings, which more than doubles Tesla’s profits.

Shopify (NYSE: SHOP) is another high-growth stock that has dazzled investors with its surging revenue and returns. In its first quarter, it reported adjusted operating income of $210.8 million, nearly double the GAAP figure as it backed out share-based compensation, related payroll taxes, and amortization of intangibles.  

Other examples abound. Uber (NYSE: UBER) is the leading global ride-sharing company and a threat to disrupt transportation in multiple ways, but the historically loss-making company has only promised to be profitable on an adjusted EBITDA basis by the end of this year. Snapchat parent Snap (NYSE: SNAP) may be one of the most profligate spenders on share-based compensation. In its first quarter, it reported a GAAP loss of $286 million but finished with a $2.5 million non-GAAP profit when not factoring in $237 million in share-based compensation and other expenses. The company has acknowledged that it needs to rein in share-based comp as it is steadily diluting shareholders, with shares outstanding up 3% last year.

What it means for investors

There’s nothing wrong with reporting adjusted earnings per share or using share-based compensation, and there are plenty of good reasons to invest in stocks like Shopify and Snap that are growing fast and have disruptive potential. However, their use of adjusted earnings shows that investors aren’t making apples-to-apples comparisons when they compare them with FAANG stocks. 

Apple posted GAAP net income of $23.6 billion in its quarter but also had $4 billion in share-based compensation. If it were adjusting its profits, they would be nearly 20% higher. 

The tech giants don’t need to do that, though. They are already delivering monster profits, and they may be purposely avoiding padding their figures because of antitrust concerns. They don’t want to look even more powerful than they are.

But powerful companies are good for investors, and all four of these businesses dominate their respective subsectors. Unless something changes on the regulatory front, these FAANG stocks will continue to spin off tons of cash, and they all look like great bets to continue beating the market.

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

More reading

• Here are the US shares that ASX investors were buying last week
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Tesla’s $293 million of free cash flow in Q1 was an incredible year-over-year improvement
• Tesla and Coinbase continue to dominate Aussie’s US share picks
• The Core Lithium (ASX:CXO) share price jumped over 11% today

Jeremy Bowman owns shares of Amazon, Facebook, Netflix, and Snap Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Netflix, Shopify, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Uber Technologies. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 0.75% to 7,120.3 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Ecofibre Ltd (ASX: EOF)

The Ecofibre share price is up 9.5% to 86.5 cents. Investors have been buying the hemp company’s shares following the release of an investor update this morning. That update revealed improved momentum in its core United States independent pharmacy business. In April, the Ananda Professional pharmacy segment saw its best month since September 2020.

MoneyMe Ltd (ASX: MME)

The MoneyMe share price has jumped 7.5% to $1.45. This follows the release of a trading update for the month of April. According to the release, the digital credit company delivered record originations of $47 million for the month. This is up 693% over the prior corresponding period. In light of this, the company now expects its gross customer receivables to exceed $300 million in FY 2021. This will be up at least 225% year on year from $134 million in FY 2020.

Nearmap Ltd (ASX: NEA)

The Nearmap share price has surged 14.5% higher to $2.36. This follows the release of an update after the market close on Tuesday. According to the release, trading has remained strong since the end of the first half. As a result, it now expects to deliver annual contract value (ACV) of $128 million to $132 million in FY 2021. This compares to its previous guidance of $120 million to $128 million and will be a 20% to 24% increase on FY 2020’s ACV of $106.4 million.

Race Oncology Ltd (ASX: RAC)

The Race Oncology share price has stormed 5.5% higher to $3.24. This follows news that the biotechnology company has raised $5.4 million from institutional and sophisticated investors in an oversubscribed placement. These funds were raised via the issue of 1.8 million new shares at $3.00 per share. Race Oncology intends to use the new capital to help develop its Bisantrene cancer drug. 

More reading

• ASX 200 jumps 0.7%: ANZ half year results, Nearmap jumps
• Here’s why the Race Oncology (ASX:RAC) share price is leaping higher
• Why the Ecofibre (ASX:EOF) share price is soaring 9% higher today
• Why the MoneyMe (ASX:MME) share price is charging 6% higher today
• 5 things to watch on the ASX 200 on Wednesday

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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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 corporate watchdog has announced it is commencing legal proceedings against Westpac Banking Corporation (ASX: WBC).

Despite the news, the Westpac share price appears to be unfazed – trading 0.77% higher to $26.18at the time of writing.

What are the allegations?

Allegations came to light this morning, following a media release from the Australian Securities and Investments Commission (ASIC). The corporate watchdog has advised it is commencing civil proceedings against Westpac for activities carried out in 2016.

The specific event in question relates to Westpac’s role in executing a $12 billion interest rate swap transaction. This transaction was associated with AustralianSuper and IFM investors purchasing a 50.4% majority stake in Ausgrid from the NSW state government. Furthermore, an agreement for the acquisition was signed around 7 am on 20 October 2016.

ASIC alleges that by 8:30 am, Westpac knew it would be chosen by the consortium to carry out the transaction. The corporate watchdog states that this is the alleged inside information. Additionally, ASIC alleges “Westpac’s traders acquired and disposed of interest rate derivative products in order to pre-position Westpac in anticipation of the execution of the swap transaction.”

The swap was later executed between Westpac and the consortium at 10:27 am. ASIC alleges the pre-positioning “had the potential to impact the price of the swap transaction to the detriment of the Consortium or the special purpose vehicle.”

What does ASIC want?

Based on the media release, the corporate watchdog will be seeking declarations and financial penalties for Westpac’s alleged contraventions.

Another financial penalty wouldn’t look great for the ASX-listed big four bank. Back in September last year, Westpac agreed to pay the largest fine in Australia corporate history — a $1.3 billion wrist-slapping for breaches of anti-money laundering and counter-terrorism financing.

Days after Westpac big profits announced to ASX

The revelation follows mere days after Westpac provided its half-year results to the ASX. For the six months ended 31 March, Westpac reported a statutory net profit after tax of $3,443 million. This was an increase of 189% over the prior corresponding period and 213% over the second half of FY 2020.

It was a positive day for the bank, leading to a 5% gain for the Westpac share price.

More reading

• Here’s where brokers think the Westpac (ASX:WBC) share price will go next
• 2 quality ASX dividend shares that will help you beat low interest rates
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 flat, Westpac rises after HY21, Premier returns jobkeeper
• Here’s how much the Westpac (ASX:WBC) dividend is worth now

Motley Fool contributor Mitchell Lawler 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 Westpac (ASX:WBC) accused of insider trading by corporate watchdog appeared first on The Motley Fool Australia.

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