The Coles Group Ltd (ASX: COL) share price is not having a great day today. Or a great week for that matter. At the time of writing, Coles shares seem set to end the trading day at (or near) $15.84 a share, down 0.19% for the day. That’s just a little bit worse than the broader S&P/ASX 200 Index (ASX: XJO), which is currently down 0.14%. Over the week so far, Coles is down 0.44%.

In fact, since reaching an all-time high of $19.26 in August last year, the Coles share price is down almost 18%. So is this a buying opportunity for Coles shares today?

What’s to like about the Coles shares?

Let’s just take a look at how the Coles share price is looking to start with. So at $15.84 a share, Coles has a market capitalisation of $21.14 billion, a price-to-earnings (P/E) ratio of 20.14 and a trailing dividend yield of 3.82%. With Coles’ full franking, that dividend yield grosses-up to 5.46%. 

According to iShares, the companies that make up the ASX 200 Index have an average P/E ratio of 23.19 at the present time. That means that Coles is currently being valued at less than the current market average. 

Coles certainly looks cheap compared to its arch-rival Woolworths Group Ltd (ASX: WOW) too. On the current Woolworths share price of $41.20, the company has a P/E ratio of 36.77 and a dividend yield of 2.45%.  Although saying that, another Coles rival in IGA-owner Metcash Limited (ASX: MTS) presently has a P/E ratio of 16.22 and a dividend yield of 3.96%.

Down Down is back back

We got some news this morning that may be weighing on the Coles share price today. Coles has reportedly relaunched its famous ‘Down Down’ campaign, cutting the prices of more than 250 products. Whilst this might initially attract more customers, the double-D’s return may also flag the return of the ‘supermarket wars’, which plagued both Coles and Woolworths’ profits a few years back. As they say, no one wins in a race to the bottom. We’ll have to wait and see if this news proves to be a long-term development.

Is the Coles share price a buy today?

One broker isn’t too concerned about Coles though and still rates it as a buy. According to CommSec, investment bank broker Goldman Sachs has a price target of $20.70 for Coles shares with a ‘buy’ rating, citing “resilient supermarket sector profitability”. That implies an upside of more than 30% on the current share price. And that’s not including dividends either.

More reading

• ASX 200 flat, Flight Centre drops, Air New Zealand rises
• Why Codan, Flight Centre, Magellan, & Woolworths are sinking
• How would Warren Buffett invest in the share market today?
• Fears of new supermarket war could hit Coles (ASX:COL) and Woolworths (ASX:WOW)
• ASX 200 down 0.4%: Tech shares rise, Afterpay increases US stake

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths 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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Seaspiracy – you’ve probably seen it trending on Netflix – you might have even watched it. The film delves into the environmental and ethical impacts of fishing. Covering topics ranging from bycatch and overfishing to seafloor deforestation and slave labour.

Which casts a very gloomy cloud over the sustainability of ASX-listed aquaculture shares.

Unsure why? Let me elaborate.

Seaspiracy questions the very fabric of sustainability

The general thrust of the film is that there is no such thing as ‘sustainable fishing’. This is disconcerting if you’re a shareholder in an ASX-listed aquaculture company, thinking it was an ethical investment.

In what has quickly become a point of contention, the film points to an assortment of debilitating predictions and ‘facts’ – including the prediction that oceans will be empty of life by 2048; 46% of the Great Pacific garbage patch is made up of fishing nets; that salmon farms require more fish to make their feed than the farms produce.

All plastic in the oceans is harmful to marine life, but one type of plastic pollution is especially deadly – Fishing gear.

Why is it more deadly?

Fishing gear is designed to catch and kill marine life, and it continues to do that even when it is abandoned or lost at sea. pic.twitter.com/OxdGaT9O1u

— seaspiracy (@seaspiracy) April 5, 2021

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

I use the term ‘facts’ loosely simply due to the continued dispute over them. Whether or not the details are factual, I’ll leave for others to decipher.

I myself am a Tassal Group Ltd (ASX: TGR) shareholder. And I’ll admit, the film made me jump back on the computer to have a look at what the salmon producer’s ‘sustainable’ initiatives really are.

Which prompted a whole new methodology for evaluating such companies… sustainability itself. After all, it’s not very wise to be invested in a company that’s destroying its own industry.

Sustainability of our ASX salmon shares 

Getting to the point – there are three dominant ASX-listed players when it comes to salmon production in Australia and New Zealand.

Each has various sustainability goals and initiatives – and invariably, different ways of reporting them. But let’s not let that stop us from taking a look at what efforts each company is making.

New Zealand King Salmon Co Ltd (ASX: NZK)

The New Zealand-based King salmon producer is the smallest ASX-listed company on the list, with a market capitalisation of $195 million. Yet, New Zealand King Salmon still has a whole section in its annual report dedicated to environmental sustainability.

The company commissioned a Life Cycle Analysis report to measure its own carbon footprint and determine areas for improvement, for starters. The report found that improvements could be made in its feed conversion ratios (FCR) and reducing animal by-products in the Salmon feed.

Interestingly, NZK pointed out the complexity of these two endeavours. Due to the unique nutritional needs of King salmon, the only way to decrease land animal proteins is to increase marine protein, which poses a conundrum.

Despite this, the company decreased its reliance on fish meal in its feed by 7.7% from 2019 to 2020. While also reducing its FCR by 2% over the same period.

The company has also committed to 100% reusable, recyclable or compostable packaging across its business by 2025.

Huon Aquaculture Group Ltd (ASX: HUO)

Huon is the next largest ASX-listed salmon producer on the list, with a market capitalisation of $290 million. Predominantly in the Tasmanian region, the company farms Atlantic salmon.

On the surface, Huon appears to be more comprehensive with its sustainability reporting than NZK. Additionally, it is the only seafood producer participating in the RSPCA Approved Farming Scheme, meeting detailed animal welfare standards.

Notably, the company’s feed formulation has dramatically increased its composition of vegetables, making up 60%, compared to 31% in 2015. This is aimed at addressing FCR.

On top of this, Huon incorporates other sustainable practices, including:

• ‘Wellboats’ for treating amoebic gill disease by bathing the salmon in freshwater;
• Maintaining a stock density at half the 15 kilograms per cubic metre maximum allowed by the RSPCA;
• Spelling the seabed between restocking, allowing the seafloor to return to baseline conditions.

Lastly, the company provides transparent reporting on seal interactions. Unfortunately, Huon experienced 5 accidental seal deaths during FY20.

Tassal Group Ltd (ASX: HUO)

The last ASX-listed company on this list is the biggest. Tassal is another Tasmanian salmon farmer, boasting a market capitalisation of $811 million.

Being the biggest, you would hope the company delves into sustainability at a granular level. Fortunately, Tassal provides a dedicated sustainability report. In fact, Tassal has been providing sustainability reporting for 10 years now. Although, that doesn’t necessarily mean it’s doing more than the rest.

Tassal addresses the issue of marine debris from its own operations by conducting multiple shoreline clean-ups per week on average. The last annual report attributed 15.3% of the collected debris to the company’s operations.

The company also utilises roughly 44% of agricultural ingredients (wheat, vegetable oils, etc) in its salmon feed production – less than the 60% reported by Huon.

Tassal has many other actions towards addressing sustainability, including:

• The use of ‘wellboats’;
• 100% recyclables target;
• Benthic compliance, requiring environmental impacts not to extend 35 metres from the lease boundary.

Finally, Tassal also provides transparency on its seal and bird interactions. It experienced 6 accidental seal deaths in FY20 due to entanglement.

ASX sustainability takeaway

Seaspiracy points out some major issues within the overall fishing industry. As always, more could likely be done – though it is reassuring that our ASX-listed salmon producers are taking these issues seriously. 

An ASX-listed company’s sustainability is certainly harder to evaluate than the simple price-to-earnings (P/E) ratio. Though, it will likely become a more important tool for evaluation for years to come.

More reading

• ASX stock of the day: Tassal Group (ASX:TGR) shares rise 5%
• These are the 10 most shorted shares on the ASX
• New Zealand King Salmon (ASX:NZK) share price steady despite loss
• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX

Motley Fool contributor Mitchell Lawler owns shares of Tassal Group 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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If you’re currently looking for some ASX tech shares to add to your portfolio, then you might want to take a look at the options listed below.

Here’s why these ASX tech shares could be in the buy zone:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first tech share is actually an ETF that gives your exposure to a group of tech shares. The BetaShares Asia Technology Tigers ETF provides Australian investors with easy access to 50 of the largest technology and ecommerce companies that have their main area of business in Asia (excluding Japan).

This means you’ll be buying a piece of tech giants such as Alibaba, Baidu, JD.com, Samsung, and Tencent Holdings.

In respect to Alibaba, it is widely regarded as the Amazon of China. At the end of the September quarter, the company had 757 million annual active customers across its Alibaba, Taobao, and Tmall brands. From this, the company is estimated to control a massive 56% of China’s e-commerce market.

BetaShares notes that due to its younger and tech-savvy population, Asia is surpassing the West with technological adoption. As a result, this area of the economy is expected to be a growth sector for a long time to come.

Damstra Holdings Ltd (ASX: DTC)

Another ASX tech share to look is this integrated workplace management solutions provider.

It provides a cloud-based workplace management platform which is used by businesses globally to track, manage, and protect their workers and assets. This is becoming increasingly important for businesses and can potentially save significant costs relating to workplace injuries. 

Damstra has been growing strongly over the last couple of years thanks to increasing demand. This strong form has continued in FY 2021, with Damstra delivering a solid half year result in February.

For the six months ended 31 December, Damstra reported a 29.6% increase in revenue to $13.3 million. And while it posted a 4% decline in EBITDA to $2.5 million, this was due to the impact of the acquisition of the loss-making Vault Intelligence business during the half.

Shaw and Partners is positive on the company. It currently has a buy rating and $1.93 price target on its shares.

More reading

• Love tech shares? This ASX ETF is a great buy today
• These ASX tech shares are all trading near their lowest prices in months
• 2 compelling ASX shares to buy in April 2021
• 3 exciting small cap ASX shares that could be destined for big things
• Is this the best ETF that ASX investors can buy 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 Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Damstra Holdings 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 Oneview Healthcare PLC (ASX: ONE) share price has continued to surge today, more than a week after announcing its world-first cloud-computing healthcare software.

At the close of trade today, the Oneview share price is up 15.2% at 42 cents per share.

Oneview provides patient engagement and clinical workflow technology solutions to healthcare facilities and had a major windfall when it launched its Cloud Care Experience Platform, a platform that allows health systems to quickly adopt technology for engaging patients.

The company provides various inpatient, outpatient and clinical pathway solutions. It generates its revenue in the form of software usage and content revenue, support services, and license fees.

Geographically, Oneview operates in Ireland, the United States, Australia, and the Middle East and North Africa. It generates the majority of its revenue from the USA.

Why is Oneview’s Cloud Care Experience Platform useful?

Oneview says that implementing a cloud-based platform for managing patients reduces non-clinical demands on care teams and optimises clinical and operational effectiveness.

The fact that Oneview’s platform has had strong support from Microsoft and runs on its platform, Azure, has proven to be a key breakthrough for the company in ensuring an easy rollout into hospitals.

The strong investor response to Oneview’s share price has also been due to the product’s world-first nature and its release during a time of increased stress on public and private healthcare systems.

Developed with a medical centre

The CXP Cloud Enterprise platform was developed in partnership with NYU Langone Health, a leading academic medical centre in New York, which rapidly rolled out the virtual engagement platform across its facilities during the coronavirus pandemic.

NYU Langone CIO Nader Mherabi said it had arrived at a pivotal time for the healthcare industry.

COVID-19 strained resources and challenged most hospitals to examine how virtual pathways can enhance patient care.

Oneview helped us build an in-patient virtual care platform, which has been instrumental during the pandemic and will continue to be key as we deliver a new level of patient engagement.

Oneview share price snapshot

The Oneview share price has been in the red for 9 of the past 14 days, but today has seen a rapid increase in investment. On the days that the share price has jumped, it’s often increased by between 15 and 30%, while declines have been far more moderate.

The Oneview share price is up more than 480% this month and 875% over the past 12 months. 

More reading

• Why the Oneview (ASX:ONE) share price is rocketing 29% today
• Here’s why the Oneview (ASX:ONE) share price is rocketing 14%
• Afterpay and Zip were among the most traded ASX shares last week
• The Oneview Healthcare (ASX:ONE) share price rockets 650% this year
• Here’s why the Oneview (ASX:ONE) share price has exploded 106% higher

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

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The S&P/ASX 200 Index (ASX: XJO) was essentially flat, falling 0.05% to 6,995 points.

One of the declines on the ASX was the Flight Centre Travel Group Ltd (ASX: FLT) share price which fell 2.6% in reaction to the news that the Australian vaccination rollout was going to be delayed.

Here are some of the other highlights from the ASX today:

Air New Zealand Limited (ASX: AIZ)

The Air New Zealand share price went up 1.5% in reaction to the airline’s update.

Air New Zealand is still looking to complete a capital raising.

The work continues to be informed by the evolving circumstances related to the global impact of the COVID-19 pandemic, including the government’s announcement of the maintaining international air connectivity scheme, the March 2021 public announcements on vaccination programme timing, the potential implications for broader border re-openings, and the announcement of the quarantine-free travel bubble to commence on 19 April. All of these are fundamental to Air New Zealand’s financial performance.

The company has changed its proposed capital raising target to be before 30 September 2021, not before 30 June 2021.

Air New Zealand has also renegotiated its existing lending facility with the government to ensure it has sufficient liquidity. It will increase the facility by up to $600 million in additional liquidity. This brings the total facility to $1.5 billion. The facility has been extended by another 16 months.

The company wasn’t able to provide an updated cash burn update.

Perenti Global Ltd (ASX: PRN)

The Perenti Global share price went up today after confirming it received $80 million to date from the sale associated with the early exit of the Yanfolila Mine in Mali and Boungou contract in Burkina Faso.

From an operational perspective, the completion of the asset sale represents the successful exit from both projects.

As previously reported, the company expects to “liberate” $80 million to $90 million in cash from the sale of the mines, plus the remaining in-country plant, property and equipment and the settlement of outstanding working capital balances associated with the final close out of these two contracts.

Perenti managing director and CEO Mark Norwell said:

With the receipt of these funds, as outlined when we presented our 2021 half year results we will redeploy this capital across our business into our most value accretive opportunities as we seek to generate and maximise value for our shareholders.

Eroad Ltd (ASX: ERD)

The Eroad share price rose over 7% after announcing that it had signed its largest Australian customer, Ventia.

Ventia has entered into a five-year agreement for a monthly subscription of Eroad’s software as a service (SaaS) products and intends to install approximately 2,500 Ehubo 2 devices in their Australian fleet with a further 1,500 in their New Zealand fleet. The agreement does not specify any minimum unit commitment. It is anticipated that these Ehubo units will be installed throughout the 2021 calendar year.

Eroad CEO Steven Newman said:

EROAD is pleased to announce that Ventia, an existing New Zealand customer for a number of years, has chosen to come on board as an Australian enterprise customer as well as significantly increasing the size of its New Zealand fleet utilising EROAD services. EROAD is looking forward to working in partnership with Ventia to deliver best safety outcomes.

More reading

• Why Codan, Flight Centre, Magellan, & Woolworths are sinking
• How would Warren Buffett invest in the share market today?
• Here’s why the Perenti (ASX:PRN) share price is edging higher
• ASX 200 down 0.4%: Tech shares rise, Afterpay increases US stake
• Why Anteotech, EROAD, Jindalee Resources, & Kogan are pushing higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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If you want to see a couple of industry sectors that are scared, threatened, and desperately trying to secure their own futures, check out the current stoush between shopping centre landlords and their retail tenants.

As the Financial Review captioned its story:

“Base rates for new leases have fallen by up to 20 per cent but big chains are pushing for turnover-based rents and resisting landlords’ claims for online sales.”

Now, I’m not going to pretend that either side is a homogenous group, or that there aren’t a decent number of ambit claims trying to take advantage of uncertainty and economic weakness…

… but let’s just say there’s a heck of a land-grab going on.

Retailers, according to the article, want to link rents to turnover.

Now, I’ve gotta say, that feels pretty strange if you expect your business to grow.

I mean, why would you lock in a higher rental charge if you’re successful?

Instead, it feels like companies are happily giving away some upside, just in case the worst happens again.

Landlords, also fighting the last war, are imagining their rents ebbing away next time there’s a downturn, and want to make sure they don’t get left holding the baby.

Again, a little strange, if you think your retail emporium is set for growth, no?

You can take your pick on motivations:

Generals fighting the last war: Businesses suddenly realising their downsides are not as protected as they’d like?

Retailers and retail landlords worried that, despite the bravado, the online threat is a clear and present danger?

Both sides trying to shift risk to the other guy?

It’s probably some of all of the above.

But it doesn’t sound like either party is particularly confident, does it?

I mean, who voluntarily locks in a stepped increase in costs as sales grow?

And who argues against getting more money if more people visit their establishment?

Very strange.

At the same time, retail landlords are also trying to get those retailers to hand over a share of online sales.

Which… is also curious.

I mean, hey, if retailers want to hand out free money, I’ll take some, too.

But can you imagine Woolies demanding that Heinz pay it a share of baked beans sales in Coles?

Or the Bunnings landlord in Geelong asking for a cut of sales made by the Bunnings in Wollongong?

I’ll admit I already have a view, here.

I think online is the future.

I think retail landlords – particularly those that own B-grade and C-grade shopping centres – are on a hiding to nothing.

I think retailers who can’t effectively compete online are in more trouble than Speed Gordon.

So it’s no wonder that retailers want rent relief if – when – they start to suffer in the face of online competition.

And it’s no wonder that landlords are trying the Hail Mary pass of trying to get a cut of online sales.

But if I’m right?

If I’m right, both are a case of trying to manage a decline.

And that’s a tough ask.

Meanwhile?

Meanwhile, I’d be taking my investing cues from these companies’ tactics.

Now, to be clear, I’m not predicting the end of physical retail.

But I am predicting the end of many B- and C-grade shopping centres.

I am predicting the end of many marginal retailers, who simply can’t absorb the lost revenue, as more of us continue to shop online.

It is, in no small part, analogous to Australia’s carmakers, swamped by competition with better products, better scale and more desirable brands.

For a while, they managed to prop themselves up… to pretend it wasn’t happening (and with their hands well and truly out for government support).

But it was always an exercise in delaying the inevitable.

Yes, there are some retailers who are doing a wonderful job of combining online and offline sales.

They’re better placed than most.

But even those guys are going to face a future in which they simply don’t need as many stores.

As JB Hi-Fi Limited (ASX: JBH) sells more and more online, do you really reckon they really need the 300-plus stores they have today?

More to the point, do you think their future sales will mean each of those 300 stores pay their own way?

I doubt it.

At least JB can pivot.

(And it’s not just JB, of course. I’m using them here as an example, but there are many, many more.)

The bad retailers? The shopping centres?

Not so much.

Westfield centres are calling themselves ‘living centres’, now, as they desperately prepare for a different future.

I admire the effort. They might even succeed, if they can become true ‘destinations’ for people to meet, eat and be entertained (plus, sometimes, to shop).

But the others?

I doubt it.

I don’t know how long it takes to play out. 

It might even be decades.

But I doubt that, too.

Either way, as I wrote earlier this week, it’s incumbent on the investor to put their money to work in places it’ll thrive, not just battle to keep its head above water.

The current skirmish might be giving us a sense of what those retail tenants and landlords are thinking. 

Invest (or not) accordingly…

Fool on!

More reading

• 2 excellent ASX shares to buy in April
• WPP Aunz (ASX:WPP) reports quarterly sales drop but reaffirms guidance
• Is it riskier NOT owning Tesla (NASDAQ:TSLA)?
• Here’s why the New Century Resources (ASX:NCZ) share price has rocketed 12% today
• Why is the Geopacific (ASX:GPR) share price surging 13% today?

Motley Fool contributor Scott Phillips 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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Are you looking to make a few additions to your portfolio? If you are, then the ASX shares listed below could be worth considering.

Here’s why they have been given buy ratings:

Lendlease Group (ASX: LLC)

Lendlease is a global property and infrastructure company which is going through a major transformation.

Following the divestment of its struggling engineering business, the company revealed a new strategy that went down well with the market.

This strategy is aiming to shift its earnings mix and business model to be more like Goodman Group (ASX: GMG). And given Goodman’s impressive form over the last decade and its positive outlook, this can only be good news for shareholders.

One broker that is a fan of the new strategy is Goldman Sachs. It currently has a buy rating and $16.54 price target on the company’s shares.

Goldman has previously stated its belief that its shares will re-rate to higher multiples once it starts to successfully execute its new strategy.

Pro Medicus Limited (ASX: PME)

Pro Medicus is a healthcare technology company that provides a full range of radiology IT software and services to hospitals, imaging centres, and healthcare groups globally.

Arguably the key product in its portfolio is the Visage 7 platform. It delivers fast, multi-dimensional images streamed via an intelligent thin-client viewer. This makes it vastly superior to cumbersome legacy systems and has a proven return on investment for users.

Thanks to the quality of its technology, the company has won a large number of key contracts over the last few years, which is underpinning strong earnings growth. For example, for the six months ended 31 December, Pro Medicus delivered a 7.8% increase in revenue to $31.6 million and a 25.9% jump in underlying profit before tax to $18.76 million.

Positively, it still has a large pipeline of opportunities and a sizeable market opportunity to grow into in the future.

Goldman Sachs is also a fan of Pro Medicus. It recently upgraded Pro Medicus’ shares to a buy rating with a $53.80 price target. The broker believes the company is well-positioned to grow its earnings at a strong rate over the coming years.

More reading

• 3 great reasons to own Pro Medicus (ASX:PME) shares
• 2 highly rated ASX growth shares to buy now
• Here’s why the Pro Medicus (ASX:PME) share price is charging higher
• 2 exciting ASX growth shares to buy next month
• NRW (ASX:NWH) share price sinks despite new contract win

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

The post 2 excellent ASX shares to buy in April appeared first on The Motley Fool Australia.

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The WPP Aunz Ltd (ASX: WPP) share price remains unchanged today despite the company announcing a trading update on its financial performance. At the time of writing, the marketing company’s shares are swapping hands for 65 cents apiece.

How did WPP Aunz perform for Q1 FY21?

WPP Aunz shares are going nowhere during late-afternoon trade as investors appear mixed on the Q1 FY21 trading update.

For the quarter ending March 31, WPP Aunz reported net sales of $144 million, a decline of 5.2% on the prior corresponding period. Management stated that the result reflected a continued impact from COVID-19. Net sales margin also dipped to a negative 2.5% as opposed to a gain of 7.1% recorded in Q1 FY20.

Although the above metrics fell, a number of transformative initiatives and associated reduction in cost base led to improved earnings. Headline earnings before interest and tax (EBIT) came to $10.2 million for the quarter. This compares to a $3.8 million loss in EBIT over the Q1 FY20 period. Headline earnings refers to only the profits (or losses) generated by core day-to-day operations and investment activities and does not include other ancillary transactions.

Net debt stood at $116.2 million, a significantly increase from the $17.2 million recorded at the end of the calendar year. WPP Aunz reaffirmed that cash collection remains strong, and that the increase in net debt is from a partial unwind of net working capital.

Outlook for remainder of FY21

Looking ahead, WPP Aunz confirmed that it is on track to meet its previously stated guidance. It believes there will be a material improvement in profitability as the economic environment strengths from the COVID-19 fallout.

For the remainder of FY21, WPP Aunz is forecasting net sales to reach between $630 million to $650 million. Headline EBITDA is expected to hit around $100 million and $110 million, with headline EBIT achieving $85 million to $95 million.

WPP Aunz managing director and CEO Jens Monsees hailed the company’s progress, saying:

We are pleased with our results for the quarter which were very much on track with our expectations and reflect the benefits of the transformation of our business in the last 12 months. The results are a credit to our whole team who have embraced change in our business while also working through a global pandemic.

WPP Aunz share price snapshot

Over the past 12 months, the WPP Aunz share price has gained more than 200%, but has slipped 6% year-to-date. The company’s shares recorded a 52-week high of 74 cents in the middle of last month.

Based on the current share price, WPP Aunz has a market capitalisation of roughly $553.9 million.

More reading

• Is it riskier NOT owning Tesla (NASDAQ:TSLA)?
• Here’s why the New Century Resources (ASX:NCZ) share price has rocketed 12% today
• Why is the Geopacific (ASX:GPR) share price surging 13% today?
• 5 things Jamie Dimon said in his annual JPMorgan shareholders letter
• Whats up with the Australian Strategic Materials (ASX:ASM) share price?

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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Tesla Inc (NASDAQ: TSLA) has long been a company that divides opinions. And that’s putting it politely. Rewind two years and every investor with an opinion on this company seemed to be in one of two camps. One camp espoused that Tesla would be a company that would one day dwarf Amazon.com Inc (NASDAQ: AMZN) with the real-life Iron Man – CEO Elon Musk – at the helm. The other fervently believed that Tesla was the world’s biggest scam, Musk a conman and that the company was going to zero.

Well, back in the present, the debate still isn’t too different. Yes, Tesla has proven itself to be able to consistently grow while becoming profitable. But for many people in the second camp, the US$656 billion market capitalisation that this company now commands (more than Toyota, Volkswagen, General Motors and Ford combined) is the new problem.

But the performance of the Tesla stock price over the past year or so has kept delighting its fans, and confounding its critics. Tesla shares are now up close to 500% over the past 12 months. And up more than 1,100% over the past two years.

It’s been a bandwagon many investors have been sorely tempted to jump on – and many have. But jumping on the said bandwagon after 1,100% gains in two years is not for the faint of heart in any investment. And Tesla shares, despite their success, remain highly volatile.

Driving Tesla home

But one investment bank is now going out on a limb with Tesla. According to Bloomberg, Morgan Stanley is now telling investors that it is now more risky not to own Tesla than to own it. 

Why? Well, Morgan Stanley believes that the Biden administration’s proposed infrastructure spending plan is the gamechanger. This plan, in its proposed form, reportedly includes US$174 billion to develop electric vehicle infrastructure across the United States. The broker thinks this would give Tesla a further advantage over other carmakers in the US. Its conclusion is that “auto investors face greater risk not owning Tesla shares in their portfolio than owning Tesla shares in their portfolio”. And that’s despite “a labyrinth of national and local laws that will present advantages and disadvantages to various automakers”. 

It’s worth pointing out that the Biden administration’s infrastructure plan has yet to pass through a narrowly divided US congress. It could be significantly amended before passage. Even so, it’s worth pointing out that it’s a big call to say owning a stock like Tesla is less risky than not owning it. We’ll have to wait for some hindsight here to see if Morgan Stanley is right.

More reading

• Amazon planning its annual prime day event for June this year
• With the Bitcoin price up overnight your crypto Tesla just got cheaper
• Why Amazon could be the big winner in the Biden infrastructure bill
• Saxo reveals its Australian clients’ top 5 most popular shares
• Tesla’s stock is way overblown and only worth $150, analyst says

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Ford and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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 New Century Resources Ltd (ASX: NCZ) share price is rising rapidly today after the company revealed the benchmark treatment charge for zinc concentrate has been significantly lowered this year.

The New Century Resources share price is up 12.12% to 18.5 cents per share today.

New Century Resources Ltd is an Australian-based mineral exploration and development company spread across Australia and the United States of America. Its assets include the Kodiak Coking Coal Project and Century Mine project. 

New Century Resources zinc pricing

The New Century Resources share price is jumping on news that the company will benefit from a lowered 2021 zinc concentrate benchmark treatment charge at US$159/t. 

The current price is a 47% reduction from the 2020 benchmark of US$299.75/t and New Century Resources says the reduction will “provide significant economic tailwinds for the operations in 2021”. 

Zinc is used in a huge variety of medical products, in food production, and in the basic materials and rare earth sectors. There is a large amount of current market tightness around zinc, which continues to drive strong price fundamentals.

The pressure on supply is resulting from prolonged coronavirus related supply interruptions against strong metal demand in China.

What is the zinc benchmark?

The zinc concentrate benchmark is a base-level price on the mineral that’s negotiated annually between industry heavyweights Teck Resources Limited and Korea Zinc Co. Ltd.

It traditionally forms the basis for the pricing of zinc concentrate smelting contracts between other miners and smelters globally. In 2021, approximately 85% of New Resource Century zinc concentrate shipments are anticipated to occur against contracts linked to the annual benchmark TC of US$159/t.

The reduction in the benchmark has significant positive economic implications for New Century. The benchmark represents the largest overall business cost, at approximately 30% of outgoing expenditure.

The 2021 benchmark price is retrospectively applied from 1st January 2021, resulting in New Century receiving back-payment for shipments issued at higher prices during 2021.

New Century Resources share price snapshot

The New Century Resources share price has been on a wild ride over the past 12 months.

From a value of 17 cents per share in April 2020, it rose to 24 cents by May 19, fell to 11 cents by September, rose to 26 cents by January 2021 and is now at 18 cents.

These fluctuations represent a 23% overall gain over the past 12 months, but that’s 20% down against the basic materials sector.

More reading

• Is it riskier NOT owning Tesla (NASDAQ:TSLA)?
• Why is the Geopacific (ASX:GPR) share price surging 13% today?
• 5 things Jamie Dimon said in his annual JPMorgan shareholders letter
• Whats up with the Australian Strategic Materials (ASX:ASM) share price?
• Why the Neometals (ASX:NMT) share price is shooting 8% higher

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

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