The Aristocrat Leisure Limited (ASX: ALL) share price is outperforming the market today as it finds a sweet spot between value and growth.

Such ASX shares aren’t easy to find in the current market with value shares outperforming growth shares.

The Aristocrat share price jumped 4.2% to $32.56 during lunch time trade – making it one of the top performing stocks on the S&P/ASX 200 Index (Index:^AXJO).

ASX growth vs. value battle rages

Growth shares used to be the market darlings in a near zero interest rate environment. You only need to look at how the Afterpay Ltd (ASX: APT) share price and Zip Co Ltd (ASX: Z1P) share price performed in the last year to see what I mean.

But the tables are turning as the market focuses on rising bond yields and the prospect of higher rates.

The ASX share market is at an inflection point as experts debate if now is the time to switch from growth to value.

Aristocrat share price gets best of both worlds

This tussle puts the Aristocrat share price in an advantageous position with Morgan Stanley initiating coverage on the gaming machine market with an “overweight” recommendation.

The broker’s bullish view on the Aristocrat share price is driven by the group’s strong growth potential and very reasonable valuation.

It fits nicely into the “GARP” (growth at a reasonable price) category, in my view. And I believe GARP stocks are among the best placed to outperform the broader market over the next 12-months.

Growth drivers for the Aristocrat share price

The fact that Aristocrat’s balance sheet is stronger than its rivals bodes well for its ability to grow and invest in innovative games.

“This leaves ALL best placed to continue to outperform peers and gain market share in participation gaming, and strengthen its competitive position and the durability (and hence value) of its earnings, in our view,” said Morgan Stanley.

Another growth driver for the group is its digital gaming division. Aristocrat developed a number of apps for mobile phones that have proven to be a hit with consumers.

“We think ALL’s Digital business deserves a 18x FY22 EV/EBIT multiple, at the top end of mobile gaming peers,” added the broker.

“Post COVID-19 we expect ALL to emerge in a net cash position in FY23 with ~A$1.9bn of debt capacity to deploy by FY22.”

This means Aristocrat has a significant war chest to invest in its businesses and/or make bolt-on acquisitions.

What is Aristocrat share price worth?

Morgan Stanley believes the Aristocrat share price is too cheap and isn’t reflective of its growth potential. The ASX share is trading on an expected circa 20 times price-earnings (based on FY22 forecasts).

That puts the Aristocrat share price at around a 20% plus discount to the ASX 200.

The broker’s price target on the stock is $38.

More reading

• ASX 200 up 1.6%: Appen rebounds, ALS acquires Investiga, Woolworths upgraded
• Why the Woodside (ASX:WPL) share price is climbing today
• Why Afterpay, Alkane, ALS, & Woodside shares are storming higher
• Here’s why Biden’s stimulus is pushing the ASX 200 higher today
• Why this new app has brokers excited for the Afterpay (ASX: APT) share price

Brendon Lau owns shares of Aristocrat Leisure Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD 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.

The post Aristocrat (ASX:ALL) share price surges as it finds a sweet spot appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ehE3u1

The IOUpay Ltd (ASX: IOU) share price is on course to start the week with a small gain.

In afternoon trade, the Malaysia-based buy now pay later provider’s shares are up 1% to 51.5 cents.

Why is the IOUpay share price pushing higher?

As well as getting a boost from improving investor sentiment in the tech sector, the IOUpay share price was given a lift by a positive announcement this morning.

According to the release, the company has expanded its leadership team with a couple of key new appointments.

Who has IOUpay appointed?

The release explains that Eddie Lee has been appointed Chief Commercial Officer (CCO) and Calvin Yeap has been appointed Chief Marketing Officer (CMO).

In respect to its new CCO, the company advised that Mr Lee brings 20 years of business development, country management, and corporate leadership across the online payments, online data management, and advertising industries.

He will be responsible for the commercial development for IOUpay’s business across the South East Asian region. The company notes Mr Lee has a proven track record of territory expansion and successfully building revenues through developing large big brand corporate relationships and merchant distribution channels.

The CCO has previously held positions as Country Manager for Malaysian listed online publishing and advertising corporate Innity Corporation Berhard. Prior to this, he was President of iPay88 Philippines, where he successfully grew the online payments business to service over 5,000 merchants.

Last week IOUpay announced an agreement with iPay88. You can read about that here.

As for its new CMO, the release advises that Mr Yeap has 15 years of experience specialising in digital marketing, corporate communication, and stakeholder engagement to build brands and revenues across South East Asia.

He has held positions as Head of Operations and Marketing for global travel technology leader Amadeus’ Malaysian operations for five years. He was also Head of Marketing for iPay88 and Head of Corporate Marketing for the Global Payments and Services Division of iPay88’s parent NTT Data Corporation.

The company notes that during his four years with iPay88, Mr Yeap successfully led iPay88 to be a household name in Malaysia. He also successfully launched iPay88 in Cambodia, Thailand and Bangladesh, as well as significantly increasing NTT data’s footprint and brand presence regionally across South East Asia.

Shareholders will no doubt be hoping these new executives bring similar successes to IOUpay.

More reading

• These small cap ASX shares surged more than 100% in February
• Why Afterpay, IOUpay, Liontown Resources, & Redbubble are racing higher
• Why the IOUpay (ASX:IOU) share price is charging 13% higher today
• The IOUpay (ASX:IOU) share price is skyrocketing 30% today
• Why the IOUpay (ASX:IOU) share price crashed 13% lower today

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 Here’s why the IOUpay (ASX:IOU) share price is pushing higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3c38rFG

Jupiter Mines Ltd (ASX: JMS) share price was down a whopping 7% today before recovering. The negative movement came after the company announced it would indefinitely delay its announced demerger.

At the time of writing, the mining companies share price is at 34 cents – down from yesterday’s close of 35 cents a share.

This drop is a distinct contrast to the 1.7% rise in the S&P/ASX All Ordinaries Index.

How today’s news is affecting Jupiter Mines share price?

In an announcement to the ASX Jupiter Mines advised it was delaying the spinoff of proposed company Juno.

Juno, which was to be an iron ore focused company, was overwhelmingly approved by shareholders at its AGM. The proposed company would have taken ownership of Jupiter’s Central Yilgarn Iron Projects. Juno was slated to commence trading on 17 March 2021.

Stitching Pensioefonds ABP (ABP), which has a near 15% stake, is the company’s second-largest shareholder. The company confirmed they did not want to meet the regulatory requirements of the Foreign Investment Review Board (FIRB). Meeting FIRB requirements is a condition of the Juno initial public offering (IPO) and Jupiter capital reduction.

Jupiter’s CEO, Priyank Thapliyal, commented:

The IPO and the potential uplift that would have occurred with the construction of Mount Mason in the near term in this robust iron ore price market was the optimal structure to release substantial value for Jupiter shareholders. Needless to say, this has been usurped for all the shareholders by the decision of one shareholder, ABP.

What are the FIRB requirements?

According to the FIRB, a foreign investor must notify the federal Treasurer and seek approval before acquiring any interest in an Australian mine or mining entity above a certain monetary threshold.

There are fees and waiting periods with the approval process.

Jupiter Mines share price snapshot

Despite today’s plunge, Jupiter Mines share price is trending upwards. Only 2 weeks ago the company hit its 52-week high of 38 cents a share. In fact, this time last year, shares in the miner were selling at only 23 cents. At today’s price, that’s a 39.6% uplift. Yet, the Jupiter Mines share price is lower than its 2018 IPO price of 42 cents a share.

Jupiter Mines has a market capitalisation of $670 million.

More reading

• ASX 200 up 1.6%: Appen rebounds, ALS acquires Investiga, Woolworths upgraded
• What’s with the Laybuy (ASX:LBY) share price today?
• Why the Woodside (ASX:WPL) share price is climbing today
• Why Afterpay, Alkane, ALS, & Woodside shares are storming higher
• Here’s why Biden’s stimulus is pushing the ASX 200 higher today

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

The post Why the Jupiter Mines (ASX:JMS) share price tanked over 7% today appeared first on The Motley Fool Australia.

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

At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a very strong gain. The benchmark index is currently up 1.6% to 6,816.4 points.

Here’s what is happening on the market today:

Tech shares climb higher

The Australian tech sector is rebounding after a strong night of trade on the Nasdaq index on Friday. The likes of Afterpay Ltd (ASX: APT) and Appen Limited (ASX: APX) are recording solid gains and are helping drive the S&P/ASX All Technology Index (ASX: XTX) higher. The technology index is up 1.6% at the time of writing.

ALS announces acquisition

The ALS Ltd (ASX: ALQ) share price is charging higher today after announcing a new acquisition. According to the release, the testing services company has acquired Investiga for an undisclosed fee. Investiga is a pharmaceutical testing business with operations in Brazil and the east coast of the United States. It specialises in the cosmetic and personal care market, providing services to a portfolio of major global clients. Investiga generated A$20 million of revenue in FY 2020.

Woolworths upgraded

The Woolworths Group Ltd (ASX: WOW) share price is outperforming today. This has been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has upgraded the retail giant’s shares to a buy rating with a $43.60 price target. Goldman notes that Woolworths’ shares were trading at a 7% discount to the Industrials ex. Financials index. This compares to a longer term average premium of +12%.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Treasury Wine Estates Ltd (ASX: TWE) share price with a 7% gain. This appears to have been driven by speculation the wine company could be takeover target. Going the other way, the Smartgroup Corporation Ltd (ASX: SIQ) share price is the worst performer on the index with a decline of 4%. This has been driven by its shares trading ex-dividend this morning for its 32 cents per share fully franked final dividend.

More reading

• Why the Woodside (ASX:WPL) share price is climbing today
• Why Afterpay, Alkane, ALS, & Woodside shares are storming higher
• Here’s why Biden’s stimulus is pushing the ASX 200 higher today
• Why this new app has brokers excited for the Afterpay (ASX: APT) share price
• Why the Santos (ASX:STO) share price is down this morning

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 AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended SMARTGROUP DEF SET. 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 up 1.6%: Appen rebounds, ALS acquires Investiga, Woolworths upgraded appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3c7U6Ih

The Laybuy Holdings Ltd (ASX: LBY) share price seesawing today despite announcing a positive market update on its performance. In mid-morning trade, the buy now, pay later (BNPL) provider’s shares are slightly down 0.7% to $1.26.

Quick take on Laybuy

Launched in 2017, Laybuy has been growing rapidly in the United States, Australia, New Zealand, and the United Kingdom. The fintech company has partnered with over 8,000 retail merchants to offer consumers BNPL solutions. The integrated payment platform allows customers to make a purchase and pay it off over 6 weekly instalments without incurring interest.

What was announced?

The Laybuy share price hasn’t gone anywhere today as investors appear unfazed by the company’s latest update.

According to this morning’s release, Laybuy advised that it is continuing to deliver a strong result for FY21. Based on the current performance, the company expects revenue and net transaction margin to be above analyst estimates.

As such, FY21 forecasted revenue is projected to come in the range of NZ$32 million to NZ$33 million. This represents an increase of 132% to 139% year-on-year. The group recorded revenue of NZ$13.7 million for FY20. In addition, net transaction margin value is anticipated to stand between NZ$10.2 million and NZ$10.7 million. Furthermore, Laybuy stated that executing key strategic initiatives like its global partner programme drove the underlying performance.

The company reported Annualised Gross Merchant Value (GMV) of NZ$630 million based on annualising GMV for January and February. This is a lift of the originally assumed GMV estimate of NZ$581 million to NZ$586 million for FY21.

 640 active merchants and 45,811 active customers were added to Laybuy’s books since the start of the calendar year.

Laybuy revealed that it will release its Q4 business update on 20 April 2021.

About the share price

Since its listing last September at $1.41, the Laybuy share price has fallen around 10% in value. However, the company’s shares stormed to a record high of $2.30 in the days following the IPO, and then headed south.

More recently, its shares have been relatively stable from the beginning of January, down 1.5% year-to-date.

More reading

• Why the Woodside (ASX:WPL) share price is climbing today
• Why Afterpay, Alkane, ALS, & Woodside shares are storming higher
• Here’s why Biden’s stimulus is pushing the ASX 200 higher today
• Why this new app has brokers excited for the Afterpay (ASX: APT) share price
• Why the Santos (ASX:STO) share price is down this morning

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.

The post What’s with the Laybuy (ASX:LBY) share price today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Ox8YYm

The Woodside Petroleum Limited (ASX: WPL) share price is one to watch in early trade. Shares in the Aussie oil and gas giant have jumped 2.5% this morning in good news for shareholders. At the time of writing, the Woodside share price has retreated slightly, trading for $26.05, up 2.28%.

Why is the Woodside share price climbing?

For one thing, the S&P/ASX 200 Index (ASX: XJO) has started strongly after a soft end last week.

One of the biggest factors driving the Woodside share price higher this morning, however, has been rising crude oil prices.

Woodside is the largest operator of oil and gas production in Australia. Additionally, it is Australia’s largest independent dedicated oil and gas company.

That means the Woodside share price tends to move in step with crude oil prices which have a direct impact on revenues and profitability.

Friday night saw crude oil prices climb higher which has translated to strong share price momentum this morning. 

According to Bloomberg, the West Texas Instruments (WTI) crude oil price rose 1.6% to US$67.15 a barrel and the Brent crude oil price climbed 1.5% to US$70.42 a barrel.

That continues the strong rebound in recent days for the global commodity, largely driven by international oil cartel OPEC holding firm with its production cuts.

Strong US economic data has also boosted hopes of a rebound in oil demand and therefore stronger pricing.

Those oil price gains have seen the Woodside share price surge higher in early trade. However, not all ASX energy shares have been seeing gains to kick off the trading week.

Despite the oil price gains, shares in rival Santos Ltd (ASX: STO) have slid lower this morning.

The Santos share price has fallen from its $7.76 per share Friday closing price after its largest shareholder sold 107.1 million or 5.14% of shares on issue.

ENN Group sold down the shares in an oversubscribed process at $7.33 per share and retains a 9.97% stake in Santos.

More reading

• Why Afterpay, Alkane, ALS, & Woodside shares are storming higher
• Here’s why Biden’s stimulus is pushing the ASX 200 higher today
• Why the Santos (ASX:STO) share price is down this morning
• This unexpected second COVID boom will lift these ASX shares in 2021
• 5 ASX shares to buy in a market crash

Motley Fool contributor Ken Hall 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 Woodside (ASX:WPL) share price is climbing today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bpD0GM

It has been a fantastic start to the week for the S&P/ASX 200 Index (ASX: XJO). In late morning trade the benchmark index is up 1.7% to 6,823.5 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is up over 3% to $119.06. Investors have been buying Afterpay and other tech shares on Monday following a strong night of trade on the tech-heavy Nasdaq index on Friday. The buying has been so strong that the S&P/ASX All Technology Index (ASX: XTX) is up a sizeable 1.9% at the time of writing.

Alkane Resources Limited (ASX: ALK)

The Alkane Resources share price has climbed 3% to 70 cents. This morning the gold-focused mineral exploration company revealed positive drilling results from its Northern Molong Porphyry Project. Management commented: “These results give us added confidence to pursue our drilling campaign as we seek to identify what could potentially be a series of substantial deposits across our Northern Molong Porphory Project.”

ALS Ltd (ASX: ALQ)

The ALS share price is up over 3% to $9.79 after announcing a new acquisition. This morning the testing services company announced that it has acquired Investiga for an undisclosed fee. Investiga is a pharmaceutical testing business with operations in Brazil and the east coast of the United States. It currently has 360 employees and generated A$20 million of revenue in FY 2020.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price has risen 2.5% to $26.10. There appear to be a couple of catalysts for this solid gain. One is another rise in oil prices on Friday night and the other is a broker note out of Ord Minnett. In respect to the latter, this morning the broker upgraded Woodside’s shares to a buy rating with a $29.05 price target.

More reading

• Why the Woodside (ASX:WPL) share price is climbing today
• Why this new app has brokers excited for the Afterpay (ASX: APT) share price
• Why the ALS (ASX:ALQ) share price is surging over 6% higher today
• The Zip (ASX:Z1P) share price is down 34% in less than a month
• Why interest rates matter for ASX 200 shares

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 AFTERPAY T 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.

The post Why Afterpay, Alkane, ALS, & Woodside shares are storming higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Oc7brV

The S&P/ASX 200 Index (ASX: XJO) has opened boldly this morning, up a healthy 1.79% to 6,831 points at the time of writing. A large part of this jump is being attributed to some news out of the United States over the weekend. And no, it’s not the Prince Harry/Meghan Markle interview with Oprah.

According to a report in the Australian Financial Review (AFR) yesterday, the US Senate has approved a massive US$1.9 trillion stimulus package focused on coronavirus relief. That was along party lines. President Biden’s Democratic Party and the Republican Party each controlling 50 votes in the chamber.

The bill will now go to the House of Representatives for final approval before it makes its way to the desk of US President Joe Biden. The bill passed the Senate on a line-ball vote — 50 votes to 49. It is expected to easily pass when it is debated on Wednesday (our time). That’s because the Democrats have a larger majority of 11 in the House. If all goes to plan, President Biden will be signing the bill into law before the end fo the week. If this does happen as expected, it will be a major victory for the US President. As well as a fulfilment of a key election promise.

Why are markets excited about this Biden stimulus?

The share market is excited about this news simply because of the sheer size of the economic stimulus that is about to enter the world’s largest economy. According to the US Department of Commerce, the United States’ total gross domestic product (GDP) last year was US$20.93 trillion in 2020, meaning this package alone is worth 9.1% of the total US economy.

The package will consist of a new round of ‘stimulus cheques’, each worth US$1,400 for “low and middle-income Americans”. Those cheques come on top of the round of US$600 cheques that Congress approved back in December.  It will also include new child tax benefits, higher unemployment payments, and money for hospitals and vaccine rollout acceleration. Payments to state and local governments are also part of the package. Democrats didn’t get all of what they wanted though. The proposed hike in the US minimum wage to US$15 an hour was not included in the final bill. That was despite protests from some of the more progressive Democrats like Sen. Bernie Sanders.

Democrats had promised a package of this scope in the run-up to the Georgia Senate elections last year (which came after the presidential election). Parts package were also part of Joe Biden’s election manifesto.

All of this extra cash looks set to make its way into the US economy within weeks. And that is why investors are excited about this deal. It is likely to mean more money comes through the tills of most US-based companies. And since the ASX tends to get excited (and depressed) about anything the US markets do, we are also feeling the love this morning.

More reading

• Why the Santos (ASX:STO) share price is down this morning
• This unexpected second COVID boom will lift these ASX shares in 2021
• 5 ASX shares to buy in a market crash
• Why the Omni Bridgeway (ASX:OBL) share price is one to watch
• Why the Nine (ASX:NEC) share price is up 26% in 2021

Motley Fool contributor Sebastian Bowen 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 Here’s why Biden’s stimulus is pushing the ASX 200 higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38jy6Jl

Afterpay Ltd (ASX: APT) announced its highly-anticipated H1 FY21 results on 25 February.

The results highlight classic Afterpay growth. This falls across all key metrics including a 106% increase in underlying sales to $9.8 billion and a 521% surge in earnings before interest, tax, depreciation and amortisation (EBITDA) to $47.9 million. 

Despite the strong results, the Afterpay share price is down 25%. This fall has come since its record all-time highs of $160.05 set on 11 February. Its bleeding continued last week, falling by about 5% to close at $115.40. 

Results and share price performance aside, there was one update that might have flown under the radar. 

Meet Afterpay Money v1.0 

Afterpay Money is a new stand-alone app built with Millennials and Gen Z in mind. The key purpose of the app is to help Australians manage their money. 

The app aims to compete as a primary money management app. It comes complete with a linked debit card and other classic banking features. Users can add new cards into the digital wallet and a salary can be paid into the account directly. Additionally, money can be transferred to other financial accounts and up to 15 savings goals can be created.

The app will also link with an Afterpay account. Furthermore, savings and Afterpay buy now pay latter account information will all be in one spot. Afterpay will also introduce a loyalty program that includes premium merchant offers and no payment upfront.

Afterpay aims to leverage its rich data insights from its Westpac Banking Corp (ASX: WBC) partnership. In addition to internal data to inform customers about budgeting opportunities and personalised merchant offers. 

The Afterpay Money app is on track to formally launch in Q1 FY22.

Brokers run the ruler on the share price 

Brokers have pushed the breaks on upgrading the Afterpay share price due to increasing competition, a stretched valuation, and rising risks. 

Ord Minnett appears to be the most bullish broker on the Afterpay share price with a buy rating and $150.00 price target on 1 March. The broker was pleased with growth across Northern American and UK regions. In addition to the value that Afterpay Money could bring. 

Citi flagged the increasing risks such as slowing e-commerce sales post-COVID and rising competition. Despite the broker’s reserved commentary, it was upbeat on Afterpay Money as a catalyst for new products and features. Taking into consideration both the risks and catalysts, Citi maintained a cautious neutral rating with a $124.80 price target on 3 march. 

More reading

• The Zip (ASX:Z1P) share price is down 34% in less than a month
• Why interest rates matter for ASX 200 shares
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• 5 things to watch on the ASX 200 on Monday
• ASX 200 drops again, Zip sinks, Worley wins

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T 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.

The post Why this new app has brokers excited for the Afterpay (ASX: APT) share price appeared first on The Motley Fool Australia.

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

The Santos Ltd (ASX: STO) share price has dropped this morning after an update from the Aussie oil and gas group.

Why is the Santos share price in focus?

The Santos share price is down 2.3% after announcing a significant sale by its largest shareholder.

ENN Group has sold 107.1 million shares or 5.14% of those on issue at $7.33 per share. The Santos share price closed at $7.76 per share on Friday with a $16.2 billion market capitalisation.

ENN’s sale received “strong support” from institutional shareholders in the oversubscribed process.

ENN reportedly remains “fully supportive” of Santos’ strategy and future direction. The infrastructure investment group also remains Santos’ largest shareholder following the sale. That includes retaining a 9.97% stake in the Aussie oil and gas producer.

The reduced shareholding does mean that a 2017 strategic relationship agreement with ENN covering board representation and other matters is no longer effective. ENN-nominated director Mr Eugene Shi will therefore resign from the board following the sale.

What else is happening for the ASX energy share?

The Santos share price began 2021 in strong fashion. Shares in the Aussie energy group have jumped 20.7% higher to $7.76 per share at Friday’s close. That translates to a 58.7% gain over the last 12 months despite volatile oil prices.

It’s worth keeping an eye on the Aussie energy group this morning for another reason. 

The S&P/ASX 200 Index (ASX: XJO) was tipped to open higher this morning according to the latest SPI futures. That, combined with strengthening crude oil prices on Friday night, will make the Santos share price worth watching in early trade.

According to Bloomberg, the WTI crude oil price rose 3.5% to US$66.09 a barrel and the Brent crude oil price climbed 3.9% to US$69.36 a barrel.

The latest price surge was largely driven by OPEC holding firm with production cuts and strong US economic data.

More reading

• This unexpected second COVID boom will lift these ASX shares in 2021
• 5 ASX shares to buy in a market crash
• Why the Omni Bridgeway (ASX:OBL) share price is one to watch
• Why the Nine (ASX:NEC) share price is up 26% in 2021
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff

Motley Fool contributor Ken Hall 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 Santos (ASX:STO) share price is down this morning appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3v4t5hl