The NEXTDC Ltd (ASX: NXT) share price was in sensational form in 2020 and was one of the best performers on the S&P/ASX 200 Index (ASX: XJO).

The data centre services company’s shares recorded a gain of 86% over the 12 months.

This compares to a 1.4% decline by the benchmark index.

Why did the NEXTDC share price smash the market in 2020?

There were a few catalysts for NEXTDC’s strong share price gain in 2020. Chief among them was the COVID-19 pandemic accelerating the structural shift to the cloud.

With more and more businesses embracing cloud-based solutions, demand for capacity in data centres increased materially.

So much so, NEXTDC was forced to bring forward development plans in order to keep up with demand.

This strong demand underpinned a 33% or 17.4MW increase in contracted utilisation to 70MW in FY 2020.

And although billing hasn’t commenced for all of this utilisation, it didn’t stop NEXTDC from delivering impressive financial results for the 12 months.

NEXTDC reported a 14% increase in revenue to $205.2 million and a 23% lift in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $104.6 million. The latter was at the top end of its guidance range.

What about FY 2021?

The good news is that demand remains strong and another stellar result is expected in FY 2021.

NEXTDC is expecting data centre services revenue of $242 million to $250 million, which will be up 21% to 25% on FY 2020. Management notes that this will be driven by strong growth in recurring data centre services revenue, supported by long-term customer contracts. Furthermore, space is now available at the S2 data centre to drive further enterprise and network opportunities.

Management is also forecasting its earnings to grow at a similar rate. It provided guidance for underlying EBITDA of $125 million to $130 million in FY 2021. This will be up 20% to 24% on FY 2020’s EBITDA.

It notes that its second generation facility performance is driving scale and earnings growth and operational excellence continues to deliver efficiencies in energy management and purchasing.

This could yet be boosted by a potential international expansion. NEXTDC recently opened offices in Singapore and Tokyo with a view for expanding into these markets in the future.

Can the NEXTDC share price go higher?

Analysts at Goldman Sachs believe NEXTDC’s shares can still go higher from here.

They currently have a buy rating and $13.20 price target on its shares. This compares to the current NEXTDC share price of $12.20.

In addition to this, the broker has suggested that its shares could be worth $20.00 based on assumptions that are high, but “not unrealistic considering the current acceleration in demand that is evident across the business.”

More reading

• Here’s how the S&P/ASX All Technology Index fared in 2020
• Why the NEXTDC (ASX:NXT) share price is up 85% in 2020
• 2 ASX tech shares to buy and hold until 2030
• 5 fantastic ASX shares to buy in 2021
• 2 outstanding ASX shares to buy and hold for a decade

Motley Fool contributor James Mickleboro owns shares of NEXTDC 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.

The post The NEXTDC (ASX:NXT) share price smashed the market in 2020 appeared first on The Motley Fool Australia.

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

The Emerge Gaming Ltd (ASX: EM1) share price has started 2021 with a bang.

The esports and gaming technology company’s shares were up 33% to 10.5 cents in morning trade.

Why is the Emerge Gaming share price rocketing higher?

Investors have been buying the company’s shares this morning following the release of an update on its MIGGSTER social gaming platform.

According to the release, Emerge Gaming has banked its first cash receipts from the social gaming platform to the value of A$8.3 million.

The MIGGSTER platform was launched on 14 November 2020 and the first cash receipts represent gross subscription fees received by Emerge in the 48 days since its launch date.

Management also advised that MIGGSTER subscriptions continue to deliver strong daily growth and further material updates will be provided to the market as they transpire.

What are gross subscription fees?

Due to its revenue sharing with Influence Crowd Technologies (formerly known as Tecnología de Impacto Multiple or TIM), not all subscription fees are received by Emerge Gaming.

Management has attempted to clarify the situation by providing a breakdown on how its agreement with Influence Crowd Technologies works.

It explained that the MIGGSTER platform is operated under a licensing agreement with Influence Crowd Technologies to market Emerge’s proprietary tournament platform technology into an affiliate sales network under a white-labelled brand.

“Under the licencing agreement, Emerge will earn 64.5% of the Net Revenue from the platform where Net Revenue is determined as gross subscriptions received less direct taxes and other directly attributable platform costs,” it commented.

Why has its partner changed its name?

No details were provided to explain why Tecnología de Impacto Multiple (TIM) has changed its name to Influence Crowd Technologies.

However, it is worth noting that there has been negative coverage of TIM in the past due to its connections to companies that have been flagged for using questionable business practices.

More reading

• ASX stock of the day: Emerge Gaming (ASX:EM1) shares rocket more than 20%
• Why Emerge Gaming, Flight Centre, Medical Dev International, & Tyro shares are dropping lower
• The Emerge Gaming (ASX:EM1) share price is on a rollercoaster ride today
• Why Abacus, Emerge Gaming, Jumbo, & Woodside shares are dropping lower
• Why the Emerge Gaming (ASX:EM1) share price crashed 50% 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 Why the Emerge Gaming (ASX:EM1) share price is rocketing 33% higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2MwvPm7

Clean TeQ Holdings Limited (ASX: CLQ) shares have risen by 6% in early morning trading, after the company announced it has secured two new additional water purification contracts in Queensland and Oman. At the time of writing, the Clean TeQ share price is trading up by 1.5 cents to 26.5 cents.

Queensland contract

The Clean TeQ share price is surging higher today after the company reported it has won a competitive tender. In its announcement, Clean TeQ advised it has been awarded a contract valued at over $2 million by the Mackay Regional Council for the upgrade of a bore water treatment plant at Koumala.

In this agreement, Clean TeQ will design, supply, and install an ion exchange treatment to remove hardness and lower the salinity of an existing bore water supply.

This is done in order to reduce the scaling of pipes, and improve taste for use in the potable water supply of Koumala.

Clean TeQ will manage the full design, procurement, construction and commissioning of the plant including subcontracting of civil works.

The program of works is scheduled to commence in the first quarter of 2021, and run through to the end of the year.

Oman contract

In late 2019, Clean TeQ was was engaged by Multotec, the company’s sales and delivery partner in Africa, to deliver a waste water treatment system at an antimony processing facility in Oman.

The company’s DESLAX technology was used in this project to remove a range of deleterious elements from up to 200 tonnes of waste water per day.

By treating the waste, the customer is able to recycle a significant proportion of the water for re-use in its processing plant, rather than disposing of it.

This provides a valuable cost saving for the customer in a geographic location where water is relatively scarce.

In today’s announcement, Clean TeQ advised it has been awarded a contract to undertake the detailed design for an upgrade of this water treatment plant.

The upgrade will focus on neutralising the waste liquors, and precipitating contaminants for easier recovery.

Management reaction

Clean TeQ Managing Director and CEO Sam Riggall was pleased with the contract wins, saying:

Our water business continues to build on the successes achieved over the past year. Having demonstrated our capability in designing, constructing and commissioning our highly effective proprietary water purification systems in a range of different applications, our focus is now shifting towards revenue growth.

More about Clean TeQ

Based in Melbourne, Clean TeQ Holdings provides services in metals recovery and industrial water treatment. The company applies its proprietary continuous ion exchange technology via its wholly owned subsidiary, Clean TeQ Water.

Clean TeQ also owns 100% of the Clean TeQ Sunrise Project in New South Wales. The company counts this among the largest cobalt deposits outside of Africa. It also has some of the largest and highest-grade accumulations of scandium on the planet.

About the Clean TeQ share price

The Clean TeQ share price has risen by around 20% over the past year. Clean TeQ shares dipped by as much as 45% in March 2020, before recovering to their current levels.

Based on the current Clean TeQ share price, the company commands a market capitalisation of $202 million.

More reading

• Why the DroneShield (ASX:DRO) share price is surging higher
• Here’s why the InvoCare (ASX:IVC) share price is on the rise today
• Why the Link (ASX:LNK) share price is dropping 11% lower today
• Tesla’s Q4 deliveries soar
• The Kogan (ASX:KGN) share price is up 160% in 12 months

Motley Fool contributor Eddy Sunarto 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 Clean TeQ (ASX:CLQ) share price is surging 6% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/390EYuL

The DroneShield Ltd (ASX: DRO) share price is running hot today following the company’s record quarterly results.

At the time of writing, the defence contractors’ shares are up 5.8% to 18 cents. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.1% to 6,856 points.

Quick take on DroneShield

DroneShield is a global leader in drone security technology. The company designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure.

Its multi-layered products are centred around on detection and disruption from unmanned aerial systems (UAS).

What did DroneShield announce?

In this morning’s ASX release, DroneShield advised that it has achieved a record fourth quarter in cash receipts.

For the three months ending 31 December, the company collected around $2.1 million from purchases in relation to its counter-UAS technology. In addition, DroneShield was awarded $250,000 in grants during the period, bringing the total to $2.4 million received.

The company will release further information about its quarterly results before the end of the month.

DroneShield CEO Oleg Vornik welcomed the results, saying:

The record quarterly receipts consisted of a wide geographic range of customers, including the Five Eyes countries and a number of others.

Our global model continues to ramp up as defence customers increase their spending, despite the COVID environment. The quarterly receipts also include both first time and repeat orders. Importantly, both our near-term pipeline and the manufacturing order book are at an all-time high.

DroneShield share price snapshot

Over the past 12 months, the DroneShield share price has faulted, sending shareholders returns to a loss of 37%. The company’s shares hit an all-time low of 8.4 cents in March last year from COVID-19 impacts.

Since then, the DroneShield share price has moved higher, but is still a long way off its 52-week high of 30 cents.

More reading

• Here are the best All Ordinaries performers of 2020
• How does fiscal stimulus impact ASX share prices?
• Why the New Energy Solar (ASX:NEW) share price is climbing higher today
• As we bid farewell to 2020, don’t miss this lesson…
• Why the DroneShield (ASX:DRO) share price is jumping 6% today

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

The post Why the DroneShield (ASX:DRO) share price is surging higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Llur4X

The InvoCare Limited (ASX: IVC) share price is on the move on Monday following the release of an announcement.

In morning trade the funeral company’s shares are up 1% to $11.56.

What did InvoCare announce?

This morning InvoCare provided an update on the appointment of its new Chief Executive Officer, Olivier Chretien.

According to the release, Mr Chretien has now been formally appointed to the board of InvoCare effective 4 January 2021.

This follows the resignation of former Chief Executive Officer, Martin Earp, as a director of InvoCare this morning as planned.

Mr Earp will continue to work with the board and Mr Chretien up to the end of March 2021. The company expects this to deliver a smooth and seamless handover of leadership.

Who is the company’s new CEO?

Olivier Chretien was named the company’s new CEO just before Christmas following a six-month search for a replacement for the outgoing Martin Earp. The latter revealed in June that he would not be staying on when his six-year contract ends in March 2021.

Mr Chretien is an experienced executive and has previously worked for private hospital operator Ramsay Health Care Limited (ASX: RHC) and conglomerate Wesfarmers Ltd (ASX: WES). His most recent role was Group Chief Strategy Officer at Ramsay Health Care.

Prior to joining Ramsay, he served in a range of senior executive and managing director roles at Wesfarmers between 2006 and 2017.

Commenting on the appointment, InvoCare’s Chair, Bart Vogel, said: “Olivier has a proven record with successful P&L management, value creation, strategy design and execution in those roles over many years. Olivier’s record demonstrates strategic execution and financial acumen, combined with successful management of operational transformation and a clear grasp of trends driving business disruption across all sectors, particularly in digital and data.”

“This combination of strategic and management execution to create value, together with strong people skills is critical to InvoCare’s investment program and operations as we address changing customer expectations and further diversify earnings into adjacencies,” he added.

Mr Chretien appears to be up for the challenge of leading the company.

He commented: “I am inspired by the Company’s mission and values and the critical role it plays in celebrating life and memories for its client families, through dedicated team members who bring uniquely empathetic skills to work every day.”

“I am committed to develop with the team an even more resilient and innovative business to ultimately deliver solid and sustainable returns to our shareholders by leveraging the foundations built over the past few years,” he concluded.

More reading

• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• 3 little-known ASX dividend shares offering big income
• These are the 10 most shorted shares on the ASX

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended InvoCare Limited and Ramsay Health Care Limited. 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 InvoCare (ASX:IVC) share price is on the rise today appeared first on The Motley Fool Australia.

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

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

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

When Tesla Inc (NASDAQ: TSLA) first started 2020, the electric car company told investors it expected to deliver 500,000 vehicles or more this year. Of course, this guidance came before Tesla knew a global pandemic would hit — one that would lead to a pause in production at its factories and weakened demand around the world for new cars. As Tesla faced these challenging times earlier this year, management pulled its forecast for half a million deliveries.

Yet here we are at the end of 2020, and Tesla is announcing that it basically achieved its initial pre-pandemic target. The company delivered 499,550 vehicles in 2020, up from about 368,000 in 2019.

Staggering growth

Tesla’s record fourth quarter deliveries highlight an impressive growth trajectory for the automaker. Full-year 2020 deliveries rose 36% year over year. Even more, fourth quarter deliveries were up 61% year over year and 29% sequentially. 

While Tesla did eventually reinstate its target for 500,000 deliveries after a strong second quarter, management made it clear at the time that achieving this goal wasn’t in the bag. Even in Tesla’s third quarter shareholder letter, management was still saying that hitting its target would be “difficult.” It would depend “primarily on quarter over quarter increases in Model Y and Shanghai production, as well as further improvements in logistics and delivery efficiency at higher volume levels.”

While Tesla’s 499,550 vehicle deliveries technically fall just shy of its 500,000 target, they are close enough to highlight Tesla’s staggering growth and to suggest that the electric car maker was able to achieve some of the improvements in logistics and delivery efficiency at higher volumes that it was aiming for.

How Tesla got to half a million deliveries

Tesla’s achievement of nearly half a million vehicle deliveries in 2020 was fueled primarily by continued growth in sales of its lower-priced models. Combined Model 3 and Y deliveries in 2020 were 442,511, or about 85% of total deliveries. The remaining deliveries were Model S and X vehicles — the company’s flagship sedan and SUV.

For the fourth quarter specifically, combined Model 3 and Y deliveries were 161,650, or about 90% of deliveries. Combined Model S and X deliveries were 18,920.

Though Tesla doesn’t break down its Model 3 and Y deliveries by model, Model Y likely played an integral role in the company’s growth this year. Tesla has been very optimistic about the new vehicle, with management implying that the small SUV’s production and delivery volumes have the potential to ramp up enough to exceed Tesla’s best-selling car: Model 3.

Tesla is certainly investing heavily in Model Y production. As of Tesla’s third quarter shareholder letter, the company had a Model Y production line at its factory in Fremont, California, and it had more production lines for the vehicle under construction at three other factories.

In 2021, investors are likely expecting another year of sharp growth in vehicle deliveries from Tesla. The company has been aggressively expanding its vehicle production capacity, setting up the auto manufacturer well for continued robust growth throughout the year.

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

More reading

• Forget Tesla. Facebook is a better buy now
• 10 incredible quotes that sum up investing in 2020
• Tesla asked Apple to buy it
• Is Apple (NASDAQ:AAPL) about to launch an electric car?
• In a record-breaking year, here are some of the world’s most popular shares

Daniel Sparks 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 Tesla. 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 Tesla’s Q4 deliveries soar appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/38Z2Wq6

The Link Administration Holdings Ltd (ASX: LNK) share price is under pressure on Monday after providing an update on its takeover approach.

At the time of writing, the administration services company’s shares are down 11% to $4.91.

What did Link announce?

This morning Link provided the market with an update on the conditional, non-binding indicative proposal from SS&C Technology Holdings that it received on 7 December.

The NASDAQ listed global provider of investment and financial software enabled services and software had made an offer of $5.65 per share to acquire 100% of Link.

This was subject to SS&C Technology receiving confirmatory due diligence, debt financing on acceptable terms, the negotiation and execution of transaction documentation, and necessary corporate and regulatory approvals.

While the Link board did not believe the proposal represented compelling value for shareholders, it considered it appropriate to provide SS&C Technology with due diligence information on a non-exclusive basis. This was so that it could develop a proposal that may be capable of being recommended to shareholders.

However, this morning the company revealed that it has received a letter from SS&C Technology stating that it has withdrawn its proposal. No reason was given for the withdrawal.

Management advised that shareholders do not need to take any action in relation to this or any proposal. Furthermore, if there are material developments in the future, it intends to inform shareholders as required under its continuous disclosure obligations.

What now?

The Link board has advised that it will continue to consider all alternatives to maximise value for shareholders.

As it has previously announced, this includes a potential separation by way of demerger of its interest in the PEXA business. Link will also explore a trade sale of its interest from 18 January 2021.

More reading

• Here’s how the S&P/ASX All Technology Index fared in 2020
• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore
• These were the best performing ASX 200 shares last week
• ASX 200 drops on Thursday
• Link (ASX:LNK) share price in focus after takeover update

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 Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. 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 Link (ASX:LNK) share price is dropping 11% lower today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3n86MSR

Online retailer Kogan.com Ltd (ASX: KGN) has been among the best ASX shares to own over the last 12 months, with its share price soaring almost 160% higher. Valued at just $7.34 a year ago, the Kogan share price has skyrocketed to $19 as at the time of writing, and even briefly touched an all-time high price of $25.57 back in mid-October.

What’s been driving the Kogan share price?

Arguably Australia’s answer to United States internet giant Amazon.com, Inc. (NASDAQ: AMZN), Kogan saw its revenues soar in 2020. This occurred as lockdown measures imposed by governments to curb the spread of coronavirus encouraged more consumers to shop online from home.

As far back as April, around the time COVID-19 panic-selling was wreaking havoc on global markets, Kogan was already reassuring shareholders that it was seeing no ill-effects from the virus. In fact, most of the impact on Kogan’s business stemming from lockdowns had been positive, helping to propel the Kogan share price higher. 

In a market update issued at the time, Kogan revealed that March had been a record month for the company, with the largest monthly increase in active customer numbers since the company listed on the ASX. March gross sales, which included sales made by third parties through Kogan’s online marketplace, and gross profit both increased by a whopping 50% year on year.

This positive momentum continued throughout the second half of the financial year. Kogan’s total revenues surged over 13% year on year to $497.9 million, while net profit after tax jumped almost 56% to $26.8 million.

The company capitalised on this strong business momentum so shore up its balance sheet through a series of capital raises. $100 million was raised via institutional investors, while a further $20 million came from retail investors.

More recent news

Kogan’s strong FY20 performance has carried over into FY21. At the company’s annual general meeting (AGM) held in November, Kogan CEO and founder Ruslan Kogan touched on a few aspects of the company’s year-to-date FY21 performance. As of October 2020, year-to-date gross sales were up almost 100% year on year, while gross profit had skyrocketed 132%.

Kogan was also ramping up its marketing spend in anticipation of the Christmas retail trading period. This included a series of record-breaking monthly marketing investments already made in FY21.

At the AGM, company chair Greg Ridder had flagged the potential for increased M&A activity. Then, in early December, Kogan announced it had acquired leading New Zealand online gaming and entertainment retailer Mighty Ape for $122.4 million. Kogan expected the acquisition to deliver significant revenue and cost synergies, as well as add immediate scale to Kogan’s New Zealand operations. The Kogan share price rallied almost 8% on the day the acquisition was announced.

Mighty Ape expected revenues for the 12 months ended 31 March 2021 to be $137.7 million, while gross profit was anticipated to be approximately $45.7 million. This is a significant addition to Kogan’s revenue pool and is before consideration of potential cross-selling opportunities and other synergies.

Foolish takeaway

Whilst the Kogan share price delivered a spectacular performance in 2020, it is still currently trading more than 25% below its all time high. With the economy continuing to open up, it will be interesting to see what 2021 has in store for Kogan shares. 

More reading

• These ASX shares are growing rapidly in FY 2021
• The 5 best performing ASX 200 shares of 2020
• 2020 ASX recap of the year we’ll never forget
• 3 ASX shares to buy for 2021
• Here’s how the S&P/ASX All Technology Index fared in 2020

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rhys Brock owns shares of Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd 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 and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Kogan (ASX:KGN) share price is up 160% in 12 months appeared first on The Motley Fool Australia.

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

At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Webjet Limited (ASX: WEB) continues to be the most shorted share on the ASX despite its short interest easing slightly to 14.9%. There are concerns that a recent outbreak of COVID-19 in New South Wales and Victoria and escalating cases across the world could delay the recovery of the travel market.
• Tassal Group Limited (ASX: TGR) has seen its short interest fall to 10.8%. Short sellers have been going after the salmon producer amid concerns that China could put tariffs on Australian salmon exports in the future.
• Mesoblast limited (ASX: MSB) has seen its short interest ease to 9.3%. This biotech company’s shares have come under pressure recently after the release of a series of very disappointing updates.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 8.2%. As with Webjet, the recent COVID outbreak in New South Wales and Victoria appears to be weighing on sentiment in the travel sector.
• Myer Holdings Ltd (ASX: MYR) has seen its short interest fall to 8.2%. This department store operator has been hit hard this year after the pandemic accelerated the shift to online shopping. This could have a big impact on the company’s turnaround plans.
• Inghams Group Ltd (ASX: ING) has 8.1% of its shares held short, which is down week on week. The poultry producer was a very disappointing performer in FY 2020 and it appears as though short sellers don’t believe the worst is over.
• InvoCare Limited (ASX: IVC) has short interest of 8.1%, which is also down week on week. There are concerns that this funeral company is losing market share to rivals. This could weigh on its performance in FY 2021.
• Zip Co Ltd (ASX: Z1P) has seen its short interest increase to 7.8%. Short sellers may be going after Zip due to rising competition in the United States from the likes of Shopify and PayPal.
• Metcash Limited (ASX: MTS) is back in the top ten with short interest of 7.8%. Short sellers aren’t giving up on this one despite its very strong performance over the last few months. They may now believe its shares are overvalued.
• A2 Milk Company Ltd (ASX: A2M) has also returned to the top ten with short interest of 7.6%. This infant formula company’s shares have recovered strongly since crashing lower following a guidance downgrade. It appears as though short sellers aren’t convinced that its operational recovery will be as quick.

More reading

• 5 things to watch on the ASX 200 on Monday
• 3 exciting ASX payment shares to buy in January
• Disappointments from the ASX 200’s best ever December quarter
• ASX sector of the year: BNPL goes from strength to strength
• These were the best performing ASX 200 shares last week

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and InvoCare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These are the 10 most shorted shares on the ASX appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/391fcql

The Afterpay Ltd (ASX: APT) share price was the best performer on the S&P/ASX 200 Index (ASX: XJO) in 2020 by some distance.

In fact, the payments company’s shares recorded a gain of 303%, which was more than double that of the next best performer – the Kogan.com Ltd (ASX: KGN) share price with a 150% gain.

Why did the Afterpay share price quadruple in 2020?

Investors were buying Afterpay’s shares for a number of reasons in 2020.

One of those was the company’s exceptionally strong performance during the pandemic. There were fears that the crisis would cause a spike in bad debts and a collapse in sales. However, those fears couldn’t have been any more wrong.

Instead, Afterpay benefited greatly from the accelerating shift to online shopping, adjusted its business model slightly (first payment upfront), and continued to grow its sales at an explosive rate without compromising its bad debts.

The company also announced a number of expansion plans. This includes its first foray into mainland Europe, an expansion into Canada, and plans to test the waters in Asia.

What else helped drive the Afterpay share price higher?

Other factors supporting the Afterpay share price include its recent addition to the exclusive ASX 20 and ASX 50 indices and the announcement of new product launches in partnership with Westpac Banking Corp (ASX: WBC).

This partnership will see Afterpay provide Westpac transaction and savings accounts and other cashflow management tools to its 3.3 million customers in Australia from the second quarter of 2021. The company expects the service to empower customers to have greater control over their budget, with an efficient and seamless digital user experience.

Furthermore, the company may not stop at Australia as it sees potential to take this offering globally in the future.

What’s next for Afterpay?

While the company could provide investors with an update on its performance during the holiday season in the coming weeks, the next scheduled update isn’t until February when it releases it half year results.

Given how far its shares have climbed over the last 12 months, expectations are high. But fortunately for shareholders, Afterpay has a habit of delivering on them and more.

More reading

• 3 exciting ASX payment shares to buy in January
• Disappointments from the ASX 200’s best ever December quarter
• Highlights from the ASX 200’s best ever December quarter
• ASX sector of the year: BNPL goes from strength to strength
• 2 important investment lessons from 2020

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Afterpay (ASX:APT) share price rocketed 300% higher in 2020 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ncoK6E