Commonwealth Bank of Australia (ASX: CBA) CEO Matt Comyn has hit out at Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P), and other buy now, pay later (BNPL) providers. Testifying before the House Standing Committee on Economics, Comyn didn’t mince his words when talking about the increasingly popular sector.

“I would acknowledge the work and innovation that they’ve undertaken to build such a, in some instances, large and successful company, and avoiding all of that regulation is quite a feat,” Mr Comyn said in response to questions about the BNPL sector.

Commonwealth Bank, however, is also a member of that industry. Through its investment in Swedish company Klarna, and its yet to be launched CommBank branded service, Australia’s largest bank seems prepared to fight Afterpay and Zip on all fronts.

Increase BNPL regulations – Commonwealth Bank CEO

Comyn took several swipes at his company’s BNPL competitors of the course of his testimony on Friday.

Late fees and financial stress

When discussing late fees, Comyn compared and contrasted Commonwealth Bank’s proposed offer to that of Afterpay.

“We have a $10 late payment fee, capped at $120 per year,” Comyn said. He then went on to compare the fee to Afterpay’s, which charges up to a $68 late fee per purchase.

Comyn also claimed BNPL consumers face higher rates of financial hardship and larger arrears than credit card users.

Merchant fees

Comyn accused BNPL providers of leaning on credit card users.

“Non BNPL users are subsidising BNPL users,” Comyn said in relation to the inability of businesses to pass on merchant fees from Afterpay or Zip to customers.

Comyn said companies like Afterpay and Zip are charging very high merchant fees of up to 7%. In comparison, Commonwealth Bank will only charge a few of around 1%. Credit card fees are even less, at approximately 0.5%.

“I also think it’s appropriate for merchants to be entitled, contractually, to pass on those costs to the consumer.”

Other regulations

Comyn also hit out at what he sees as BNPL providers being able to skirt financial regulations.

“[BNPL providers] rely on an exclusion [in the National Consumer Credit Protection Act] that was drafted many years before the category of [BNPL] existed.”

Comyn singled out comprehensive credit reporting laws, which BNPL providers like Afterpay are exempt from, and consumer data retention laws as areas BNPL providers should face stricter regulation.

“I don’t think it’s unreasonable given the size of the market, the scale of the individual players, in one instance being an ASX 20 company, to make an investment in understanding their customers’ circumstances and financial position,” he said.

The ASX 20 company in question is Afterpay.

“Some of these payment companies have an enormous amount of data. I don’t know why they are able to avoid [data retention] regulations,” Comyn added.

At the end of his testimony, Comyn said the BNPL space, which generates $10 billion per year, is too big to avoid regulation.

“I think they are beyond a point where at least the legislative and regulatory framework that’s applied to that sector needs to be comprehensively reviewed.”

Zip responds

A spokesperson for Zip gave the following response when approached for comment by Motley Fool Australia.

“Zip has always put responsibility front and centre of our business model and, as a result, our 1.74% bad debt rate is industry leading.

“Zip has done credit checks since day one on all applications and we do not have a business model built off late fees.

“Only 1/100 Zip Pay customers is late each month compared with 1/6 for a bank credit card.  Because of this due diligence, Zip makes less than 1% of its revenue from late fees.

“Also, unlike credit cards, Zip, and all BNPLs signed up to the BNPL Code of Practice, agreed that if a customer is late in a repayment, their account is locked until the debt is cleared. They cannot keep spending and get into a debt spiral (unlike the bank credit cards).”

Afterpay was also approached for comment but none was received before publication.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• 2 ASX dividend shares with generous yields in 2021
• 3 of the best ASX shares to buy this month
• Top brokers name 3 ASX shares to sell next week
• Why the Zip (ASX:Z1P) share price can go even higher

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Commonwealth Bank (ASX:CBA) CEO hits out at Afterpay and BNPL providers appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3gkoa7a

The S&P/ASX 200 Index (ASX: XJO) has enjoyed yet another strong week of returns which saw the index make a new post-COVID high. In the previous week, the ASX 200 hit the 7,000 point threshold for the first time since the onset of the coronavirus back in February 2020.

Last week, the ASX 200 built on that momentum and was pushing as high as 7,067 points on Thursday afternoon. That’s less than 2% from its all-time high of just under 7,200 points that was reached on 20 February 2020. 

It was ASX tech shares that were leading the charge last week, with several of the ASX’s more well-known names enjoying big gains. Zip Co Ltd (ASX: Z1P) was the top ASX 200 performer, rising more than 12% over the week (more on that later). But we also saw healthy moves upward from tech shares like Altium Limited (ASX: ALU), Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO).

That’s not to say the ASX blue chips were missing out. We saw new 52-week highs from Westpac Banking Corp (ASX: WBC), Macquarie Group Ltd (ASX: MQG) and Woolworths Group Ltd (ASX: WOW) last week.

ASX gold miners also had a top week. A gradual rise in the price of the precious metal helped in this endeavour, as did a slight bump in the Aussie dollar against its US counterpart. 

US growth and jobs

So what caused this continuing optimism? Well, we had some extremely encouraging economic statistics come out mid-week, which no doubt helped push the ASX 200 higher. Over the month of March, the unemployment rate fell from 5.8% to 5.65%. And that was despite a rise in the participation rate.

We also continued to see the US markets push higher into new record territory, which is never bad news for AX 200 shares. Both the S&P 500 Index (SP: .INX) and the Dow Jones Industrial Average (DJX: .DJI) closed at record highs on Friday afternoon (US time), which is a pretty incredible event if you think about it. 

But not all ASX shares were lifted by the rising tide last week. Energy generation companies Origin Energy Ltd (ASX: ORG) and AGL Energy Limited (ASX: AGL) both had shockers. The latter fell to a new 16-year low of $9.15 per share on Friday. 

But how did our own ASX 200 fair over the week?

How did the markets end the week?

Well, the ASX 200 Index started the week at 6,995.2 points and ended up at 7,063.5 points, a gain of 0.98% for the week. Monday saw the ASX 200’s only loss for the week, with a slip of 0.3%. Tuesday was essentially flat with a measly gain of 0.04%. But Wednesday saw a bit of acceleration with a 0.66% gain. This was followed up on Thursday with another 0.51%, and Friday saw a further 0.07% added.

Meanwhile, the All Ordinaries Index (ASX: XAO) also had a good week. The All Ords started out at 7,252.3 points and finished up at 7,325.8 points, a gain of 1.01%.

Which ASX 200 shares were the biggest winners and losers?

Time now for our rather salacious winners and losers segment where we take a peek at the week’s best and worst ASX 200 shares. So fetch the biscuits and put the kettle on as we, as always, start with the losers:

Worst ASX 200 losers	% loss for the week
Whitehaven Coal Ltd (ASX: WHC)	(17.7%)
Regis Resources Limited (ASX: RRL)	(14.9%)
Origin Energy Ltd (ASX: ORG)	(9.7%)
TPG Telecom Ltd (ASX: TPG)	(5.7%)

Last week’s wooden spoon recipient was Whitehaven Coal with a nasty near-18% slide. Investors were hitting the sell button in droves after the company informed the market that coal production had been hit by unexpected delays, including bad weather, in a quarterly update. 

ASX gold miner Regis was a notable exception to the outperformance of the ASX gold miners last week. Investors did not evidently approve of the company’s plans to raise cash to acquire a 30% interest in IGO Ltd (ASX: IGO)’s Tropicana Gold Project. 

As mentioned earlier, Origin Energy also had a stinker. Origin continues to face uncertainty woes, and this week the company gave investors an update which consisted of an FY2021 guidance downgrade. It seems investors’ patience with this one is wearing thin.

Finally, TPG Telecom was also in investors’ sights, despite no major news out of the company. It might still be suffering from the announcement of CEO David Teoh’s resignation last month.

With the losers out of the way, let’s now take a look at last week’s winners:

Best ASX 200 gainers	% gain for the week
Zip Co Ltd (ASX: Z1P)	12.9%
Pilbara Minerals Ltd (ASX: PLS)	12.1%
Pendal Group Ltd (ASX: PDL)	9.7%
Resolute Mining Ltd (ASX: RSG)	8.4%

Zip Co topped the ASX 200 last week with a near-13% gain. Fuelling this appreciation was a quarterly update the buy now, pay later (BNPL) company released on Tuesday. This outlined an impressive 114% jump in transaction volume and an 80% rise in revenues for the period.

Lithium company Pilbara was also a top performer last week. There was no major news out of the miner, but investor sentiment has been warming for a few months now in this sector. Further, as my Fool colleague James discussed on the weekend, Pilbara has been enjoying some love from brokers lately as well.

Fund manager Pendal was also basking in some attention from investors. This appears to be the result of a 4.4% increase in funds under management over March to $101.7 billion, which the company unveiled late last week. 

Finally, Resolute Mining topped the ASX gold miners last week with an 8.4% bump. This was helped by the factors discussed above, as well as the restoration of a mining license in Ghana. 

A wrap of the ASX 200 blue-chip shares

Before we go, here is a look at the major ASX 200 blue-chip shares as we start on yet another week in paradise:

ASX 200 company	Trailing P/E ratio	Last share price	52-week high	52-week low
CSL Limited (ASX: CSL)	35.22	$269.07	$332.68	$242
Commonwealth Bank of Australia (ASX: CBA)	19.57	$87.99	$89.20	$57
Westpac Banking Corp (ASX: WBC)	39.74	$25.32	$25.41	$14.53
Australia and New Zealand Banking Group Ltd (ASX: ANZ)	23.8	$28.82	$29.55	$15.07
National Australia Bank Ltd (ASX: NAB)	24.62	$26.72	$27.10	$15
Fortescue Metals Group Limited (ASX: FMG)	7.71	$20.82	$26.40	$10.61
Woolworths Group Ltd (ASX: WOW)	37.52	$42.04	$42.47	$33.82
Wesfarmers Ltd (ASX: WES)	33.55	$55.64	$56.40	$35.58
BHP Group Ltd (ASX: BHP)	26.44	$47.57	$50.93	$28.76
Rio Tinto Limited (ASX: RIO)	15.14	$118.88	$130.30	$80.10
Coles Group Ltd (ASX: COL)	19.79	$15.56	$19.26	$14.95
Telstra Corporation Ltd (ASX: TLS)	23.02	$3.43	$3.54	$2.66
Transurban Group (ASX: TCL)	–	$13.88	$15.64	$12.22
Sydney Airport Holdings Pty Ltd (ASX: SYD)	–	$6.11	$7.49	$4.99
Newcrest Mining Ltd (ASX: NCM)	17.67	$27.72	$38.15	$23.08
Woodside Petroleum Limited (ASX: WPL)	–	$24.07	$27.60	$16.80
Macquarie Group Ltd (ASX: MQG)	23.38	$156.25	$157.38	$93.62
Afterpay Ltd (ASX: APT)	–	$127.39	$160.05	$25.67

And finally, here is the lay of the land for some leading market indicators:

• S&P/ASX 200 Index (XJO) at 7,063.5 points.
• All Ordinaries Index (XAO) at 7,325.8 points.
• Dow Jones Industrial Average at 34,200.67 points after rising 0.48% on Friday night (our time).
• Bitcoin (CRYPTO: BTC) going for US$55,938 per coin.
• Gold (spot) swapping hands for US$1,777 per troy ounce.
• Iron ore asking US$174.10 per tonne.
• Crude oil (Brent) trading at US$66.77 per barrel.
• Australian dollar buying 77.34 US cents.
• 10-year Australian Government bonds yielding 1.68% per annum.

That’s all folks. See you next week!

More reading

• Commonwealth Bank (ASX:CBA) CEO hits out at Afterpay and BNPL providers
• Leading broker says the Origin (ASX:ORG) share price is dirt cheap
• Why ASX mining shares are likely to jump this morning
• 2 ASX dividend shares with generous yields in 2021
• 5 things to watch on the ASX 200 on Monday

Sebastian Bowen owns shares of Bitcoin, National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wZkNbE

The Origin Energy Ltd (ASX: ORG) share price was well and truly out of form last week and tumbled notably lower.

The energy company’s shares were among the worst performers on the S&P/ASX 200 Index (ASX: XJO) with a decline of approximately 10%.

Why did the Origin share price crash lower?

Investors were selling Origin’s shares last week after it downgraded its earnings guidance for FY 2021.

Origin made the downgrade following an adverse and unexpected outcome on a domestic gas contract price review and continued headwinds in energy markets’ operating conditions.

Management advised that it is now expecting its energy markets division to post a 30% to 35% decline in operating earnings in FY 2021. It also warned that FY 2022 would be equally difficult.

Is this a buying opportunity?

One leading broker that believes the weakness in the Origin share price has created a buying opportunity is Goldman Sachs.

According to a note this morning, the broker has retained its conviction buy rating but trimmed its price target slightly to $6.50.

Based on the current Origin share price, this implies potential upside of over 50% over the next 12 months.

What did Goldman say?

Goldman Sachs thinks that it is worth sticking with Origin and believes FY 2022 will be the bottom for its Energy Markets business.

It said: “The Energy Market earnings downgrade is partly linked to higher gas costs based on an arbitrated price review of Otway gas offtake contracts with Beach Energy. The price outcome appears to look through current market conditions and applies pricing consistent with ACCC contract pricing from January 2018 to July 2020, logically this should imply a future benefit for Origin’s gas book from 2023, as the next price reset looks back to pricing from Jan 2021 while we expect the gas market to tighten from 2023.”

“This reinforces our view that FY22 will be the trough year for Energy Markets, with a recovery likely from 2023. The rebound in oil prices over the past 6 months is expected to deliver capital management in FY22 with an improving outlook for Energy Market returns,” its analysts added.

The broker also notes that the current Origin share price ascribes no value to the Energy Markets business.

Goldman said: “On current prices, the Energy Markets business looks essentially free, where we value APLNG on stand-alone valuation of ~$5.00/share (based on a blend of ~6x EV/EBITDA and DCF on US$60/bbl LT).”

It is for this reason the broker has the confidence to keep Origin’s shares on its conviction buy list.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• 5 things to watch on the ASX 200 on Monday
• These were the worst performing ASX 200 shares last week
• ASX 200 edges higher, Origin crunched, Mineral Resources falls
• Why Mineral Resources, Origin, Strike, Whitehaven shares are sinking

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.

The post Leading broker says the Origin (ASX:ORG) share price is dirt cheap appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2QdnTs6

The ASX will take a step closer to retesting its record high this morning and ASX mining shares are likely to lead the charge!

The futures market is pricing around a 0.4% rise in the S&P/ASX 200 Index (Index:^AXJO) this morning.

You can thank the positive lead from Wall Street for this. But this will be overshadowed by China’s record-breaking gross domestic product (GDP) figure.

China’s record GDP reading

The Asian giant reported an eye-watering 18.3% surge in economic growth for the March quarter compared to the same time last year.

That is the largest GDP figure since China’s National Bureau of Statistics (NBS) published the data in 1993.

The blistering pace of growth stands in contrast to the first quarter of 2020. That’s when the COVID-19 outbreak caused China’s GDP to collapse by 6.8%. That too set a record of its own, although not in a good way.

ASX shares best leveraged to China’s growth

The remarkable turnaround is great news for ASX shares. This is particularly so for our miners who sell their commodities almost exclusively to China.

Iron ore heavyweights like the BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price are expected to outpace the ASX200.

Copper producers like the OZ Minerals Limited (ASX: OZL) share price and Sandfire Resources Ltd (ASX: SFR) share price are also likely to join the party.

ASX oil shares to benefit too

I won’t be surprised to see ASX energy shares getting a boost too. This includes the Santos Ltd (ASX: STO) share price and Oil Search Ltd (ASX: OSH) share price.

While ASX oil-exposed shares don’t sell directly to China, crude prices could get some extra support as optimism towards global economic growth increases.

Black spots in China’s GDP

But before you get too excited, some experts warn China’s latest quarterly GDP figure is a lot worse than you might believe.

First off, the 18.3% figure was slightly below the median forecasts by economists polled by Bloomberg, reported the South China Morning Post.

Further, the March quarter 2021 growth rate is far less impressive when compared to the December quarter. The inflation and seasonally-adjusted GDP number increased 0.6% versus the last quarter.

That’s well below the 3.2% quarter-on-quarter growth rate achieved in the last quarter of 2020. It seems that China’s growth momentum is actually slowing!

But bullish ASX investors may not take notice.

More reading

• 5 things to watch on the ASX 200 on Monday
• 2 high-yielding ASX 200 dividend shares
• These were the best performing ASX 200 shares last week
• What to make of all this good news?
• These were the worst performing ASX 200 shares last week

Motley Fool contributor BrenLau owns shares of BHP Billiton Limited, OZ Minerals Limited, Rio Tinto Ltd., Sandfire Resources Ltd and Santos Limited. Connect with me on Twitter @brenlau.

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 Why ASX mining shares are likely to jump this morning appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ghMsih

Are you looking for income options for your portfolio in April? If you are, then you might want to consider the ASX shares listed below.

Here’s why they could top options for income investors:

Accent Group Ltd (ASX: AX1)

Accent Group is a footwear-focused retail group which owns store brands such as HYPE DC and Platypus. 

It has been growing its earnings and dividends at a solid rate over the last few years. Pleasingly, this has even continued during the pandemic thanks to the popularity of its brands, its strong market position, and its growing online business.

One broker that believes the strong form can continue is Bell Potter. It currently has a buy rating and $2.65 price target on the company’s shares.

The broker is also forecasting dividends of 11.9 cents per share in FY 2021 and 12.2 cents per share in FY 2022. This represents fully franked yields of 5% and 5.1%, respectively, over the next two years.

Commonwealth Bank of Australia (ASX: CBA)

Another ASX dividend share to consider is this banking giant. Although the pandemic hit the bank hard, it has come out the other side of it in a strong position.

In fact, it looks as though the provisions it made for COVID-19 were too large. As a result of its strong capital position, the bank has been tipped to return funds to shareholders in FY 2022.

In addition to this, with the housing market booming and responsible lending rules eased, Commonwealth Bank’s outlook has improved greatly. This has put it in a position to start growing its dividend again over the coming years.

At present, UBS currently has a neutral rating and $90.00 price target on its shares. This compares to the current CBA share price of $87.99.

The broker is also forecasting fully franked dividends of $3.60 per share in FY 2021 and $4.05 per share in FY 2022. This will mean dividend yields of 4.1% and 4.6%, respectively, for income investors over the next two years.

More reading

• Rates could be on hold for years so buy these excellent ASX dividend shares
• Which big 4 ASX bank is going to pay the biggest dividend in FY21?
• Housing prices outpace the Commonwealth Bank (ASX:CBA) share price
• Is the Commonwealth Bank (ASX:CBA) share price a buy today?
• Australian jobs numbers for March show signs of recovery

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

The post 2 ASX dividend shares with generous yields in 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3txoOSx

On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a subdued note. The benchmark index rose by a modest 4.9 points to 7,063.5 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to storm higher

The Australian share market looks set to start the week on a very positive note. This follows a solid finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 35 points or 0.5% higher this morning. On Wall Street on Friday, the Dow Jones rose 0.5%, the S&P 500 climbed 0.35%, and the Nasdaq pushed 0.1% higher. The Dow hit a new record high after posting its fourth straight week of gains.

Redbubble shares added to ASX 200

The Redbubble Ltd (ASX: RBL) share price could be given a boost by news that it will soon be added to the ASX 200 index. S&P Dow Jones Indices has announced that it will replace Coca-Cola Amatil Limited (ASX: CCL) on the benchmark index, subject to final court approval of its takeover. S&P Dow Jones Indices intends to make the changes prior to the open of trading on 22 April 2021.

Oil prices lower

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices softened. According to Bloomberg, the WTI crude oil price fell 0.5% to US$63.13 a barrel and the Brent crude oil price dropped 0.25% to US$66.77 a barrel. That wasn’t enough to stop both WTI and Brent crude oil recording solid weekly gains. This was driven by optimism over a recovery in demand.

Gold price rises

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.6% to US$1,777.30 an ounce. The easing of bond yields led to the precious metal having its best week in four months.

Goldman remains positive on Origin shares

The Origin Energy Ltd (ASX: ORG) share price could be dirt cheap after its significant decline on Friday. According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating but trimmed their price target slightly to $6.50. This implies potential upside of over 50% from the last Origin share price. Goldman said: “On current prices, the Energy Markets business looks essentially free, where we value APLNG on stand-alone valuation of ~$5.00/share (based on a blend of ~6x EV/EBITDA and DCF on US$60/bbl LT).”

More reading

• Why the Redbubble (ASX:RBL) share price could charge higher today
• 2 high-yielding ASX 200 dividend shares
• These were the best performing ASX 200 shares last week
• What to make of all this good news?
• These were the worst performing ASX 200 shares last week

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.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3eaOQ7P

The Redbubble Ltd (ASX: RBL) share price will be one to watch on Monday morning.

This follows the release of an announcement by S&P Dow Jones Indices after the market close on Friday.

What was announced?

On Friday, S&P Dow Jones Indices announced that it would be removing beverage giant Coca-Cola Amatil Limited (ASX: CCL) from the benchmark S&P/ASX 200 Index (ASX: XJO).

This follows news that the independent shareholders of Coca-Cola Amatil have voted in favour of the takeover offer by Coca-Cola European Partners (CCEP).

That offer sees the European bottler acquire Coca-Cola Amatil all the shares in Coca-Cola Amatil held by independent shareholders (all shareholders other than The Coca-Cola Company) for $13.50 cash per share less the cash amount of the final second half 2020 dividend of 18 cents per share.

According to the results of the vote, 81.55% of independent shareholders present and voting, in person or by proxy, voted in favour of the scheme resolution.

This means that pending approval of the Supreme Court of New South Wales on Tuesday, the takeover will essentially be complete.

Hence why S&P Dow Jones Indices is planning to remove Coca-Cola Amatil’s shares from the benchmark index this week.

How does this impact Redbubble shares?

S&P Dow Jones Indices needs another company to replace Coca-Cola Amatil and has picked the ecommerce company.

According to the release, if everything goes to plan, S&P Dow Jones will remove Coca-Cola Amatil from the ASX 200 and replace it with Redbubble prior to the open of trading on 22 April.

This could be good news for the Redbubble share price as many fund managers have strict mandates in relation to the shares they can buy.

One common mandate is that they only buy shares listed on the ASX 200. So, the company’s inclusion on the index brings Redbubble into play for fund managers looking to deploy funds.  

In addition to this, index-tracking funds will be needing to buy its shares in order to reflect the changes.

All in all, increased demand from the buy side could be a positive for the Redbubble share price in the coming weeks.

More reading

• 5 things to watch on the ASX 200 on Monday
• Coca-Cola Amatil (ASX:CCL) share price slides as shareholders vote
• 5 things to watch on the ASX 200 on Friday
• Leading broker names its best ASX share ideas for April
• Will the Kogan (ASX:KGN) share price making a comeback in April?

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.

The post Why the Redbubble (ASX:RBL) share price could charge higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/32mMnSe

If you’re looking for shares that have dividends that could grow at a solid rate over the coming years, you may want to look beyond the banks and blue chip shares to the small end of the market.

Below are two top small cap shares that could grow their dividends at a strong rate over the coming years. Here’s what you need to know about them:

Integral Diagnostics Ltd (ASX: IDX)

The first ASX dividend share to look at is Integral Diagnostics. It is a medical imaging service provider operating from a total of 72 radiology clinics.

It has been a strong performer so far in FY 2021. For example, during the first half, the company reported a 29.5% increase in revenue to $170.7 million and a 61.1% jump in net profit after tax to $23.2 million.

Pleasingly, Goldman Sachs believes it is well-placed to continue this positive form. As a result, it has slapped a buy rating and $5.50 price target  on its shares.

Goldman is forecasting fully franked dividends of 11.4 cents per share and 13.9 cents per share over the next two years. This implies yields of 2.4% and 2.9%, respectively.

People Infrastructure Ltd (ASX: PPE)

Another ASX dividend share to consider is People Infrastructure. It is a leading workforce management company which has been experiencing strong demand for its innovative solutions to workforce challenges.

This led to the company delivering a 3.1% increase in first half revenue to $201 million and a 51.5% increase in normalised net profit to $14.8 million.

Morgans is positive on the company and currently has an add rating and $4.22 price target on its shares. It is also forecasting fully franked dividends of 13 cents per share in FY 2021 and FY 2022. Based on the latest People Infrastructure share price, this represents attractive 3.1% yields.

More reading

• 2 top ASX dividend shares to buy this month
• 3 top ASX small cap shares that delivered for this fund’s portfolio
• Top broker picks the best ASX shares to buy for the new quarter
• 2 ASX dividend shares to buy
• 2 growing ASX dividend shares to buy

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 People Infrastructure Ltd. The Motley Fool Australia has recommended Integral Diagnostics Ltd and People Infrastructure Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 small cap ASX dividend shares to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3snTqVn

WAM Active Limited (ASX: WAA) is one of the listed investment companies (LICs) in the Wilson Asset Management (WAM) stable that targets ASX shares.

It runs a number of different LICs that target different investments. There’s the largest – WAM Capital Limited (ASX: WAM) – which targets undervalued ASX shares. Then there’s WAM Leaders Ltd (ASX: WLE) which looks to buy undervalued ASX blue chips.

Since inception in January 2008, WAM Active’s portfolio has delivered a gross return of 12.1% per annum before fees, expenses and taxes.

Its hunting ground target is market mispricing opportunities on the Australian stock exchange.

In its latest monthly update, WAM Active outlined these two ASX shares as opportunities:

Reliance Worldwide Corporation Ltd (ASX: RWC)

WAM explained that the Reliance Worldwide designs, manufactures and supplies water flow and control solutions and products for the plumbing industry, with a focus on repair and renovation.

The company operates in the Asia Pacific region, the Americas, Europe, the Middle East and Africa.

WAM Active pointed out that in the FY21 half-year result, the ASX share generated a 13% rise in net sales to $642.4 million. The company also reported a $168.7 million reduction in net debt to $226 million.

Operating cashflow went up by 17% to $155.6 million and adjusted net profit after tax increased by 56% to $99.3 million. It grew the interim dividend by 33% to 6 cents per share.

The fund manager acknowledged that the business faced headwinds over the past few years, but it sees a positive outlook in the home renovation and repair markets which can drive the company in its key markets in the US and the UK.

Airtasker Ltd (ASX: ART)

Airtasker is an ASX share that recently listed on the ASX. It’s now the leading online marketplace for local services with more than 4.3 million users.

How does it work? That online marketplace connects customers who require a particular task to be completed with people willing to complete a task for money. Around 950,000 customers have purchased a service on the e-commerce platform since inception in December 2020.

The ASX share reported that its ‘unique paying customers’ have grown from around 18,000 in FY15 to approximately 367,000 in FY20. Over that same time period, the average task value went from $97 to $159.

Airtasker managed to raise $83.7 million from investors during its initial public offering (IPO) process at a share price of $0.65. Since then, the Airtasker share price has more than doubled to $1.36 per share. That’s a strong debut for the ASX share.

More reading

• Airtasker (ASX:ART) share price continues rollercoaster
• Wilson Asset Management (WAM) thinks these 2 ASX shares are a buy
• 5 things to watch on the ASX 200 on Friday
• 88 Energy and Airtasker were among the most traded ASX shares last week
• Is Canva coming to the ASX?

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX shares that this leading fund manager thinks are buys appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3mXzIi2

If you’re a fan of both small caps and tech shares then you’re in luck. Because right now there are a few trading on the ASX market that I think have a lot of potential.

Three which I feel would be worth keeping a close eye on are listed below. Here’s why I like them:

Audinate Group Limited (ASX: AD8)

The first small cap to watch is Audinate. It is a digital audio-visual networking technologies provider best known for its innovative Dante audio over IP networking solution. This solution is used widely across the professional live sound, commercial installation, and recording industries globally. Last month the company revealed that it has now reached an impressive milestone of more than 3,000 different products now incorporating Dante for audio-over-IP connectivity. It advised that research from RH Consulting shows that 3,034 Dante-enabled devices are available from 361 different manufacturers. Furthermore, the data indicates that Dante is the protocol of choice in more than 91% of the networked audio products currently on the market. This bodes well for its future growth in a niche but lucrative market.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX healthcare share to watch is Volpara. It is a healthcare technology company that provides software which leverages artificial intelligence imaging algorithms to help with the early detection of breast cancer. It has been a very strong performer in recent years and has consistently grown its market share in the United States. It appears well-placed for more of the same in the coming years thanks to the quality of its offering and recent acquisitions. Combined with increases in its average revenue per user metric, this should underpin strong revenue growth over the next decade.

Whispir Ltd (ASX: WSP)

A final small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider which has a lot of potential. It provides an industry-leading software platform that allows governments and organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. It counts a number of blue chips as customers. This includes AGL Energy Limited (ASX: AGL), AIA Group, BP, ING, KPMG, and Takata. Management estimates that it has a total addressable market of US4.7 billion in the United States alone.

More reading

• 2 must-watch small cap ASX shares
• 3 exciting small cap ASX shares for your watchlist
• 2 small cap ASX tech shares to buy now
• 4 exciting small cap ASX shares to watch
• Why the Whispir (ASX:WSP) share price is sinking today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends VOLPARA FPO NZ and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia has recommended AUDINATEGL FPO, VOLPARA FPO NZ, and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 growing small cap ASX tech shares to watch appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/32lKZPE