The Medibank Private Ltd (ASX: MPL) share price is edging higher on Friday after the release of an announcement.

At the time of writing, the private health insurance company’s shares are up 0.5% to $3.04.

What did Medibank announce?

This morning Medibank announced that is strengthening its focus on preventative health and doctor-led partnerships through the acquisition of a non-controlling 33.4% economic interest in the Myhealth Medical Group.

According to the release, Myhealth is a leading operator of primary care clinics. It was founded in 2007 and delivers more than 2.5 million patient consultations each year.

The release notes that Myhealth is growing very quickly and has tripled its number of clinics over the last five years. As a result, it now has a network of 86 clinics in prime locations across New South Wales, Victoria, and Queensland.

Medibank is acquiring the 33.4% economic interest in Myhealth for a total expected consideration of $63 million. This will be funded entirely from existing cash resources and is expected to complete by 31 March 2021.

Management notes that the transaction is expected to be immediately earnings per share accretive. Myhealth is forecast to deliver operating earnings of approximately $21 million in FY 2021.

Management commentary

Medibank’s Chief Executive Officer, Craig Drummond, believes that GPs are the very heart of Australia’s health system and expects this investment to support them to enhance the health and quality of life of their patients.

This is turn should help reduce high-cost hospital admissions and alleviate pressure on the health system.

Mr Drummond also notes that this transaction reflects the ongoing transformation that Medibank is undertaking.

He commented: “Medibank’s investment in Myhealth also reflects our ongoing transformation into a broader healthcare company and complements our existing partnerships with doctors across the Australian health system.”

“We will continue to work within the healthcare system to contribute to a healthier community with a focus on preventative care, which will have a positive impact on avoidable hospitalisation, and contribute to a more sustainable health system that benefits all Australians. The announcement today is a further signal of our commitment to doctor-led and patient-centred partnerships that meet these objectives,” he added.

The release stresses that patients will continue to be treated equitably, with no clinical priority given to Medibank or any other private health insurance customer.

More reading

• Top brokers name 3 ASX shares to sell next week
• This ASX sector is facing a tough 2021

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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Webcentral Group Ltd (ASX: WCG) shares opened sharply lower in morning trade, down more than 10%. Within 30 minutes, however, the Webcentral share price had regained all those losses, only to be sliding lower again at time of writing, down 2.59% to 56.5 cents.

These wild share price moves come following Webcentral’s release of its financial year 2021 first half results (H1 FY21).

What did Webcentral report?

The Webcentral share price is all over the show this morning after the company reported that revenue from its domain registrations rose early in 2020. This came as the pandemic saw more people working from home. However, Webcentral’s revenue declined in the second half of 2020. H1 FY21 revenue from domain registration was down 4.2% relative to H1 FY20.

Revenue from the company’s email services posted moderate growth (up 1.6%) and Webcentral said it expected further growth in this sector.

Meanwhile revenue from hosting services was down 17.4% compared to the first half of the 2020 financial year, falling to $7.25 million from $8.78 million.

Digital marketing revenue also fell by 33.4% over the previous corresponding half year. The company noted that this segment is a value add to its core products and it expects revenue from digital marketing will grow in line with the company’s overall success.

Webcentral’s revenue from other income decreased by 27.3% compared to the same half in 2020. The company expects revenue from other income to keep falling as it completes transitional service agreements, and brings in less revenue from its property sublease (due to shrinking property assets).

Total revenue declined by 14.7% compared to the first half of the 2020 financial year.

The company pointed to the impact of COVID-19 and poor customer experience as the cause for the drop in revenue.

It added that the business is undertaking “a number of initiatives to address these issues. Management is confident that revenue growth will return across all four core services as these short term issues are resolved.”

Looking ahead, Webcentral forecasts strong growth with the introduction of the .au domains in the second half of 2021. It expects pre-registrations to commence near the end of first half of the year and a 25% to 35% growth in new domain name registrations.

Commenting on the results, managing director Joe Demase said:

The completion of the takeover has delivered significant value to both groups of shareholders. We are now focused on our Strategic Transformation Program to improve customer experience, achieve revenue growth and simplify Webcentral’s operations.

Webcentral had been targeted for takeover by both 5G Networks Ltd (ASX: 5GN) and Keybridge Capital Limited (ASX: KBC), with the former prevailing.

Webcentral share price and company snapshot

Webcentral provides a range of website services including domain name registrations and renewals, website and email hosting, website development, search engine marketing and social advertising campaigns.

The Webcentral share price is up nearly 50% over the past 12 months and up more than 800% from its 30 March lows. In 2021, Webcentral shares are up around 28%.

By comparison the All Ordinaries Index (ASX: XAO) is up 2% so far in 2021.

More reading

• Why the 5G Networks (ASX:5GN) share price is charging higher
• New twist in 5G Networks (ASX:5GN) takeover of ASX-listed Webcentral

Bernd Struben 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 Veem Ltd (ASX: VEE) share price is soaring 14% in early afternoon trade.

The sharp gains come following the company’s release of its results for the first half of the 2021 financial year.

Veem is a marine technology company that produces propulsion and stabilisation systems for private, commercial and government vessels.

What results did Veem report?

In this morning’s ASX release, Veem provided an unaudited update on its expected results for the half year to 31 December 2020. It said the audited results will be released later this month.

The company reported revenues of $28.4 million for the half year. That’s up 36% from the previous corresponding period.

Earnings before income, tax, depreciation and amortisation (EBITDA) of $5.7 million were up 111% from the first half of the 2020 financial year. Veem noted that figure includes $1.5 million it received from the government’s JobKeeper program.

Net profit after tax (NPAT) posted a 233% increase from the previous corresponding period, reaching $3.0 million.

The company said its gyrostabilisers sales were particularly strong, with the $3.6 million in revenue up 73% from the previous corresponding period.

Earnings per share (EPS) of 2.3 cents were up 229%.

Commenting on the results, Mark Miocevich, Veem’s managing director said:

The continued increases in sales of VEEM Gyros with minimal increase to the overhead burden should continue to see the business generate strong EBITDA and cash flow. Across the business, and within Gyros, propulsion and defence specifically, we continue to see evidence of strong sales and profit potential for the rest of 2021.

VEEM is in the strongest position it ever has been with an existing robust core business which has allowed us to invest and support our focus on the rapid growth of our disruptive VEEM Gyro product into the global marine market. Following the signing of the framework agreement with Damen, one of the largest European shipbuilders, we are now on the cusp of delivering on what we have known for some time is a game changing opportunity.

Veem share price snapshot

Veem shares have been a star performer over the past year. The company proved highly resilient to the COVID-19 market rout, with the share price falling less than 6% from late February through to 23 March.

Over the past 12 months the Veem share price is up 79%. In 2021, shares are up a more subdued 2.4%.

By comparison the All Ordinaries Index (ASX: XAO) is flat over the past 12 months.

More reading

• Why is the Webcentral (ASX:WCG) share price on a rollercoaster today?
• Why Douugh, Janus Henderson, Northern Star, & Orocobre are dropping lower
• Westpac (ASX:WBC) share price to close gap with CBA (ASX:CBA) says Morgans
• Vonex (ASX:VN8) share price explodes 23% higher. Here’s why
• Should you buy ASX shares that are takeover targets?

Motley Fool contributor Bernd Struben 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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In afternoon trade on Friday, the S&P/ASX 200 Index (ASX: XJO) is on track to record a strong gain. At the time of writing, the benchmark index is up a sizeable 0.85% to 6,822.1 points.

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

Douugh Ltd (ASX: DOU)

The Douugh share price is down 3% to 16.5 cents after returning from a six-week suspension. The financial app company’s shares were down as much as 18% at one stage before recovering to current levels. Investors appear concerned with the progress (or lack thereof) of its app and an ASX investigation into listings breaches. This morning Douugh revealed that the profit from the sales of breached shares will be donated to charity.

Janus Henderson Group CDI (ASX: JHG)

The Janus Henderson share price has fallen 4% to $40.90. Last night the fund manager released a strong fourth quarter update which revealed operating income of US$227 million. This was up 45% on the third quarter and 47.1% on the prior corresponding period. Taking the shine off this profit result was news that one of its largest shareholders is selling its entire stake.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 2% to $11.86. Investors have been selling Northern Star and other gold miners today after the spot gold price pulled back overnight. At the time of writing, the S&P/ASX All Ordinaries Gold index is down 0.7%.

Orocobre Limited (ASX: ORE)

The Orocobre share price has dropped 5% to $4.78 despite there being no news out of the lithium miner. However, earlier this week analysts at Morgans downgraded the company’s shares to a hold rating with a $5.15 price target. It made the move on valuation grounds after recent share price strength.

More reading

• ASX 200 up 0.75%: REA Group and News Corp impress, big four banks charge higher
• Why the Douugh (ASX:DOU) share price is crashing 18% lower
• Why the Janus Henderson (ASX:JHG) share price is sinking 7% today
• 5 things to watch on the ASX 200 on Thursday
• Supreme Court approves Northern Star and Saracen mega merger

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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Anticipation is building in the banking sector as the reporting season kicks off and the Westpac Banking Corp (ASX: WBC) share price is tipped to be the biggest winner.

That’s the view from Morgans as the broker believes the WBC share price will close the gap with the outperforming Commonwealth Bank of Australia (ASX: CBA) share price.

This isn’t to say that the broker has dour expectations for CBA. In fact, its feeling bullish for the entire ASX banking sector during this reporting season.

CBA to set the mood for ASX banking sector

But it’s the Commonwealth Bank of Australia (ASX: CBA) share price that’s stealing the spotlight as it’s the only one of the big four that will hand in its half year report card.

As the financial year end for the WBC share price, Australia and New Zealand Banking GrpLtd (ASX:ANZ) share price and National Australia Bank Ltd. (ASX: NAB) share price are in September, they will only issue trading updates.

What CBA reports will set the tone for the rest of the sector and Morgans sees upside risks to its earnings and dividend forecasts for the sector. This is despite being more bullish than consensus.

Multiple tailwinds

“While we continue to appear to have the lowest FY21 credit impairment charge forecast on the street for each major bank, we believe our forecasts are looking increasingly conservative,” said Morgans.

“That is, we are seeing increasing upside risk to our earnings and dividend forecasts for FY21.”

The big drop in the number of COVID-19 deferred loans, rising house prices and the bounce in economic activity are supporting the positive outlook for ASX banks.

Upside risks for ASX bank earnings and dividends

“We see potential for favourable revisions to macroeconomic assumptions and probability weights in the Dec-20 quarter,” added Morgans.

“This is because the unemployment rate and house prices have fared better than assumed in the banks’ base case scenarios for provisioning.”

The large valuation gap between CBA and WBC

But it’s this optimism that will drive the outperformance of the WBC share price at the expense of the CBA share price.

The WBC share price has been lagging the pact. I believe this is due to concerns about the strength of its balance sheet as WBC is the most likely to need to raise capital compared to the other three big banks.

On the other hand, the CBA share price fared the best as it holds the strongest balance sheet in the group.

Why the WBC share price can outperform CBA

“However, as investor confidence in banks increases, we believe investors will place a more normal weighting on risk profiles and pay more attention to valuations,” said Morgans.

“Consequently, we expect CBA’s share price to underperform the other major banks and we expect WBC’s share price to outperform the other major banks over the next 12 months.”

More reading

• ASX 200 up 0.75%: REA Group and News Corp impress, big four banks charge higher
• ASX shares to rocket 6% this year
• Here’s how ASX equal-weight ETFs stack up to index funds
• ASX 200 falls 0.9%, Nick Scali reports, Vulcan jumps
• What to expect from the Commonwealth Bank (ASX:CBA) half year result

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. 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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Vonex Ltd (ASX:VN8) shares have exploded today after the company announced a multi-year wholesale agreement. In morning trade, the Vonex share price rocketed to an all-time high of 32.5 cents. However, some investors were quick to take profits, slightly retracing the company’s shares to 32 cents, at the time of writing, up 23.08%.

What’s driving the Vonex share price to new highs?

The Vonex share price is on the rise today as the company secured another contract to complement its wholesale business.

According to this morning’s release, Vonex advised it has signed a multi-year wholesale agreement with Orange Business Services, through its wholly-owned subsidiary, 2SG Wholesale.

Headquartered in Paris, France, Orange Business Services is a communications solutions company servicing over 220 countries. The group provides hardware, cloud computing, voice and data management, network infrastructure, multimedia, security, supply chain management, and collaboration services.

Under the agreement, Vonex will provide business-grade mobile broadband services to Orange Business services across Australia. The deal will be used to support the launch of new products that will offer the latest connectivity for Orange Business Services’ customers. These include clients operating within industries such as automotive, mining, oil & gas and public sectors.

Vonex noted that the latest contract award reflects its growing wholesale business. The company aims to deliver best-in-class products and services to both new and existing telco customers.

What did management say?

Vonex managing director Matt Fahey welcomed the deal, saying:

We are delighted to partner with Orange to support Orange Business Services’ expansion plans in Australia. Signing this agreement is testament to the growth and maturity of our offer to small, medium and enterprise customers, as we are seeing strong growth across both existing and newly-launched products.

Orange managing director of Australasia Kevin Griffen went on to add:

With this agreement, Orange will offer enterprises the ability to combine NBN connectivity with wireless broadband services through one provider only. This will bring great simplicity as well as strong, fast and stable connection which were once reserved for MPLS and the largest companies.

Vonex share price snapshot

Incorporating today’s surge, the Vonex share price has risen more than 190% over the past year and over 400% from its March lows.

Based on the current Vonex share price, the company commands a market capitalisation of around $50 million.

More reading

• Westpac (ASX:WBC) share price to close gap with CBA (ASX:CBA) says Morgans
• Should you buy ASX shares that are takeover targets?
• ASX 200 up 0.75%: REA Group and News Corp impress, big four banks charge higher
• What’s with the Splitit (ASX:SPT) share price today?
• Why Magellan, News Corp, REA Group, & Temple & Webster shares are racing higher

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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Most times it’s music to an investor’s ears when one of their stocks will be bought out by another company.

The takeover usually involves a purchase price higher than the market price, so there is a handsome profit involved. The buyer is hardly going to low-ball the existing shareholders, otherwise they won’t approve the sale.

One recent example on the ASX is Amaysim Australia Ltd (ASX: AYS).

The telecommunications provider is currently in the midst of a takeover from listed investment company WAM Capital Limited (ASX: WAM). WAM offered 70 cents for each Amaysim share in cash or 85.6 cents per share in WAM stock.

This gave Amaysim’s shareholders a 15.6% premium to the one-month volume-weighted average price after the end of October.

So should investors try to buy up shares that could become takeover targets?

Takeovers only happen on the way up

Forager chief investment officer Steve Johnson said that cheap stocks often end up with a takeover as the happy ending for investors.

But they rarely happen for companies enduring a difficult time.

“You tend to see them once the business has at least turned around,” he said on a Forager video.

“Once it’s recovered and the share price is reasonably fair and then someone can pay a sense of premium to that and everyone is happy.”

He took advertising agency WPP Aunz Ltd (ASX: WPP) as an example in the Forager Australian Shares Fund (ASX: FOR) portfolio.

WPP AUNZ in December received a buyout offer from its parent WPP PLC (LON: WPP).

“That takeover bid is 70 cents compared to a share price that was down in the 20s back in March, and maybe early 40s when we first bought it.”

According to Forager senior analyst Alex Shevelev, the company transformed during the COVID-19 period to improve its performance.

“During calendar 20, the management team was doing some pretty good things to try to get the business back onto even ground. They were cutting costs,” he said.

“The parent company that already owned 62% of WPP, of course, was aware of what was going on there and that things were improving. Clearly they felt that was a good opportunity to launch a bid for the remaining portion that they didn’t own.”

Relying on takeovers for returns: right or wrong?

This is why investors should not be solely relying on the possibility of a takeover for return on investment, according to Johnson.

“If you’re relying on them for value realisation then you’re in trouble — because it means something else has gone wrong with your investment,” he said.

“That’s my advice to everyone: Make money and pay dividends, and if we get a takeover then that’s the cream on the cake — not the reason that we own the stock.”

The next likely ASX takeover 

Shevelev named Eclipx Group Ltd (ASX: ECX) as another company with huge potential for a buyout.

It plays in the car fleet management industry where economies of scale are “very dramatic”.

“So if you had an acquisition of this business by one of the other two players… the synergies across that group would be very significant,” he said.

“That’s coupled with a restriction on the number of deals that can be done here because the industry is getting quite consolidated after a period of mopping up of smaller players.”

Johnson agreed that Eclipx is “a good example”.

“I think the economic rationale for it in that sector is very significant.”

More reading

• 3 forgotten ASX stocks left behind in the car sales recovery
• Stop worrying about a market crash: Do this instead
• 4 ASX shares that helped this fund outperform in December
• Why this top broker thinks the Telstra (ASX:TLS) share price could surge ~40%
• The ASX 200 stock facing a day of reckoning at the February reporting season

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

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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a high. The benchmark index is currently up 0.75% to 6,816.8 points.

Here’s what is happening on the market today:

REA Group half year update impresses

The REA Group Limited (ASX: REA) share price is pushing higher today after reporting strong half year profit growth despite softer revenues. Due partly to the Melbourne lockdowns, REA Group posted a 2% decline in half year revenue to $430.4 million. However, thanks to its excellent cost control, the company’s net profit after tax grew 13% over the prior corresponding period to $172.1 million. Management also spoke positively about the future, noting that “Australia’s property market appears to be on the march again.”

News Corp shares rocket

The News Corporation (ASX: NWS) share price is rocketing higher today after the media giant revealed its most profitable quarter since the new News Corp was launched more than seven years ago. According to the release, the company posted a 3% decline in second quarter revenue to US$2.48 billion. However, stronger margins led to News Corp reporting quarterly net income of US$261 million. This was up from US$103 million a year earlier.

Bank shares push higher

The big four banks are all pushing higher on Friday and are helping to underpin the ASX 200’s strong performance. While all four banks are outperforming the market, the best performer has been the National Australia Bank Ltd (ASX: NAB) share price with a 1.4% gain. NAB is scheduled to release its first quarter update on 16 February. Some investors appear confident this update will be a positive one.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the News Corp share price with a 13% gain. This follows the release of its second quarter update. The worst performer has been the Janus Henderson Group CDI (ASX: JHG) share price with a 3.5% decline. A solid quarterly update by the fund manager was overshadowed by news that one of its largest shareholders is selling its stake.

More reading

• Why Magellan, News Corp, REA Group, & Temple & Webster shares are racing higher
• Why is the News Corp (ASX:NWS) share price rocketing 12%?
• Why the REA Group (ASX:REA) share price is pushing higher
• Why the Janus Henderson (ASX:JHG) share price is sinking 7% today
• ASX shares to rocket 6% this year

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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Splitit Ltd (ASX: SPT) shares are seesawing this morning following the company’s announcement of an approved receivables funding facility. Following the release, the Splitit share price leapt 4.2% to an intraday high of $1.50. 

At the time of writing, however, shares in the buy now, pay later (BNPL) company have retreated to $1.435, down 0.35%.

What did Splitit announce?

The Splitit share price is jumping about after the company reported it has secured a line of credit to fund its growth and capital management strategies.

According to its release, Splitit announced it has signed a US$150 million receivables funding facility with Goldman Sachs.

The newly approved line of credit not only doubles Splitit’s existing credit facilities, but paves the way for significant expansion. With a term of three years, the revolving line of credit will be used to support growth in United States and European markets.

Splitit revealed it will provide support to merchants though funding, as well as implementing a structure to facilitate additional jurisdictions.

Pleasingly for the company, the loan is attracting a lower cost than its existing debt facilities. Splitit noted that relying less on the more expensive loans, and using Goldman Sacks’ line of credit, will increase the company’s gross margins in the long run.

Words from the CEO

Splitit CEO Brad Paterson commented on what the new receivables funding facility will do for the company. He said:

This large committed facility from Goldman Sachs is a key pillar of our Merchant Sales Volume growth strategy. Demand from merchants in the US and Europe for our funded model has never been stronger, and coupled with our existing strong balance sheet, we now have the foundations in place to accelerate our growth plans whilst also driving improved margins.

Splitit share price summary

Over the last 12 months, the Splitit share price has accelerated more than 180% on the back of rising demand for its services.

The company’s shares suffered a short-term shock when COVID-19 hit international markets in March, sending its shares to an all-time low of 20 cents. However, following the Australian Government’s stimulus packages, the Splitit share price roared back to life. The company’s shares reached a record high of $1.93 in late August 2020.

Based on the current share price, Splitit commands a market capitalisation of around $650 million.

More reading

• 3 reasons to consider Sezzle (ASX:SZL) at this share price
• Splitit (ASX:SPT) share price slides despite record quarter
• Why Bathurst Resources, Megaport, Orocobre, & Splitit shares are dropping lower
• ASX 200 rises 0.4%
• Could this be why Afterpay (ASX:APT) and other BNPL shares are soaring today?

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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a high. At the time of writing, the benchmark index is up 1% to 6,834.2 points.

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

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has stormed 6% higher to $50.56. This follows the release of the fund manager’s latest funds under management update. According to the release, Magellan experienced net inflows of ~$223 million in January. This included net retail inflows of $85 million and net institutional inflows of $137 million.

News Corporation (ASX: NWS)

The News Corp share price has jumped 13% to $28.29 following the release of its second quarter update. Although the media giant’s update revealed a 3% decline in second quarter revenue to US$2.48 billion, this didn’t stop it delivering strong profit growth. News Corp reported quarterly net income of US$261 million, which is up from US$103 million a year earlier. This was its most profitable quarter since the new News Corp was launched more than seven years ago.

REA Group Limited (ASX: REA)

The REA Group share price is up 3% to $159.15 after delivering solid half year profit growth. According to the release, for the six months ended 31 December, the property listings company reported a 2% decline in revenue to $430.4 million. However, thanks to a 13% reduction in operating expenses, the company’s net profit after tax increased 13% to $172.1 million.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has surged 8% higher to $10.97. This is despite there being no news out of the online furniture and homewares retailer. However, REA Group spoke positively about the Australian housing market in its update. This may have sparked hopes that it will support demand for Temple & Webster’s products. 

More reading

• Why is the News Corp (ASX:NWS) share price rocketing 12%?
• Why the REA Group (ASX:REA) share price is pushing higher
• 2 fast-growth ASX tech shares that are being sold off
• 5 things to watch on the ASX 200 on Friday
• Why Alliance Aviation, REA Group, SEEK, & Vulcan shares are charging higher

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended REA Group Limited and Temple & Webster Group 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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