The Sandfire Resources Ltd (ASX: SFR) share price jumped this morning after it posted a big increase in profit and dividend as it supported the theory of a commodities “supercycle”.

Shares in the copper miner surged 4.9% to a 52-week high of $5.86 this morning when the S&P/ASX 200 Index (Index:^AXJO) added 0.6%.

Sandfire it pointed to signs that the recent surge in the copper price to an eight-year high may only be the start of a prolonged bull market for the metal.

Sandfire results fanning supercycle speculation

The run-up in copper and other commodities is fuelling speculation that the world is on the cusp of a commodities supercycle. Not all experts agree, but Sandfire has planted its flag in this debate. I am sure the miner isn’t trying to talk up its own book!

“Many of the global investment banks have recently upgraded their short and medium term price outlooks to US$9,000 –$10,000/tonne, citing what they see as the start of a prolonged copper bull market,” said Sandfire’s chief executive Karl Simich.

“This is certainly reflected in what we see with demand from our key customers, and also in the constrained development pipeline of new copper projects.”

The rising copper price lifts all boats, of course. But the Sandfire share price is outpacing its peers at the time of writing. The OZ Minerals Limited (ASX: OZL) share price advanced 0.8% to $22.59 and the South32 Ltd (ASX: S32) share price added 1.4% to $2.84.

Sandfire profit nearly doubled

Investors got excited about Sandfire when it posted a near doubling in interim net profit of $60.8 million compared to 2019’s $34.2 million. It also lifted its first half dividend to 8 cents a share from 5 cents that is paid this time last year.

The lofty copper price helped push Sandfire’s sales revenue to $355.6 million in the six months to end December 2020 even as sales volume dipped to 30,856 tonnes of copper. In contrast, it posted revenue of $313.1 million in 1HFY19 when it sold 33,616 tonnes of the red metal.

The copper price ended 2020 at around US$8,000 a tonne. It climbed further since to around US$9,000 a tonne.

Cashed up and ready to spend

Pleasing performance at Sandfire’s flagship DeGrussa mine in Western Australia also helped underpinned the solid result.

That’s great news for Sandfire’s cash flow. Cash from operating activities jumped $28.7 million to $137.8 million in 1HFY20.

The cash will come in handy as management looks to commit to the US$259m T3 Motheo mine development in Botswana.

“Copper is one of the key ‘future-facing’ metals required to support the world’s transition to a low-carbon future,” added Simich.

“Demand is predicted to soar as global investment in renewable energy continues to grow and the global economic recovery gains momentum.”

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Motley Fool contributor Brendon Lau owns shares of OZ Minerals Limited and South32 Ltd. 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 Stockland Corp Ltd (ASX: SGP) share price is sliding, down 2% in morning trade. At the time of writing, the Stockland share price was down 0.88% to $4.49.

We take a look at Stockland’s results for the financial half-year ending 31 December (H1 FY21) below.

What financial results did Stockland report for H1 FY21?

The Stockland share price is sliding after the company reported a 30.4% drop in statutory profits of $350 million for the half year. This was down from $504 million in H1 FY20. Net profits before tax dropped 39.5% from the prior corresponding period (pcp) to $312 million.

Stockland’s earnings before interest (EBIT) of $468 million was down 8.1% from the $509 million reported in the first half of the 2020 financial year.

Funds from operations increased by 0.4% year-on-year to $386 million. That works out to 16.2 cents in funds from operations per security, up 0.6%. However, adjusted funds from operations per security slid 0.7% from the corresponding half year to14.1 cents.

Stockland reported net operating cashflows of $430 million. It credited strong residential settlements and its commercial property rent collection which accounts for 90% of net billings.

Management Commentary

Commenting on the results, Stockland’s CEO, Mark Steinert, said:

We continue to successfully deliver on our strategic priorities divesting non-core assets, increasing our capital allocation to Workplace and Logistics, and restocking our Residential landbank. This is repositioning the Group to deliver more consistent, above-sector average total returns and drive value for our stakeholders.

Stockland’s CFO, Tiernan O’Rourke, added:

As a result of delivering on our strategic priorities and the actions undertaken during the pandemic including the acceleration of Residential production and release levels, and a focus on Commercial Property rental collection, we have reported strong operating cashflow and capital management metrics all of which will support future opportunities.

Stockland will pay a dividend of 11.3 cents, an increase of 6.6% from H2 FY20. For the full year, the company expects dividends to be in line with its payout ratio of 75–85% of funds from operations.

Share price snapshot

The Stockland share price has yet to fully recover from last year’s COVID-driven market rout, which saw shares plummet more than 65% by 23 March. While up 149% from the 23 March lows, Stockland shares remain down 12% over the past 12 months. That compares to a 0.5% loss on the S&P/ASX 200 Index (ASX: XJO).

Year-to-date the Stockland share price is up 5%.

More reading

• Sandfire (ASX:SFR) share price hits year high on profit result and supercycle hopes
• Here’s why the LiveTiles (ASX:LVT) share price is charging higher today
• Why the Ramsay Health (ASX:RHC) share price is up 8% today
• Air New Zealand (ASX:AIZ) share price flies after earnings devastated
• Link (ASX:LNK) share price rises despite earnings fall

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

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The LiveTiles Ltd (ASX: LVT) share price is pushing higher today following the release of its half year results.

In morning trade the intranet and workplace technology software provider’s shares are up over 4% to 25 cents.

How did LiveTiles perform in the first half?

For the six months ended 31 December, LiveTiles reported a 10% increase in annualised recurring revenue (ARR) to $58.1 million. On a constant currency basis, its ARR grew 23% over the prior corresponding period.

Also heading in the right direction was its operating expenses. Excluding non-recurring items, LiveTiles’ operating expenses reduced by 27% to $23 million.

And while the company is still making a loss, it is narrowing. For the six months, LiveTiles recorded an operating loss of $2.3 million. This compares to an operating loss of $14 million a year earlier.

It was a similar story on the bottom line, with LiveTiles’ loss after tax improving to $6.5 million from $15.9 million a year earlier. This improvement is being driven by strategic cost initiatives and continued revenue growth.

At the end of the period, LiveTiles had a cash balance of $19.4 million.

Management commentary

LiveTiles Co-Founder and Chief Executive Officer, Karl Redenbach, appeared pleased with the company’s performance during the half.

He commented: “LiveTiles is pleased to have added to its record base of annualised recurring revenue and cash receipts, and been able to reinvest into its marketing initiatives and direct sales strategy after a period of cost discipline. Importantly we have achieved all of this with a remarkable 84% improvement in our Adjusted EBTIDA for the half compared to the same period last year.”

“LiveTiles is adding new products and features, strengthening longstanding partnerships, striking new ones, finding integration efficiencies and enhancing our brand awareness in enterprise space.”

And while no guidance has been given, Mr Redenbach notes that the company has started the second half positively.

 “We’ve started the calendar year with great momentum with our recent record customer win, which will help LiveTiles elevate itself as a clear leader in the Employee Experience industry and continue to win more Enterprise business,” he concluded.

More reading

• Why CSL, LiveTiles, OceanaGold, & Woodside shares are tumbling lower
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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 LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. 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 Ramsay Health Care Ltd (ASX: RHC) share price is up 8% this morning after the global private healthcare company reported its half-year results.

Prior to open, Ramsay’s share price was sitting at $63.28. At the time of writing, the share price stands at $68.44. The share price has been impacted over the last 12 months, falling 18.3%, with COVID-19 creating a challenging environment. It appears the market was originally preparing for weaker results.

What’s moving the Ramsay Health share price?

Ramsay Health struggled through the half, with restrictions and lockdowns continuing in some of its operational regions. The impact of this was reflected in the 6.6% decline in operational revenue during the half-year. Additionally, lower demand for non-surgical services added to the dampened result.

Looking locally, Australian operations resulted in earnings before interest, tax, depreciation, and amortisation (EBITDA) of $402 million, a reduction of 21% compared to last year. Restrictions on capacity and increased costs associated with the COVID environment were held responsible for the decline.

Luckily, Ramsay experienced lifts in EBITDA across Europe and the United Kingdom. This was mostly due to cost controls and cost support payments by governments. Importantly, this levelled out EBITDA for the group to $1.039 billion, a slight reduction of 1%.

Lastly, the board has nominated to resume dividend payments to shareholders. Ramsay has declared a fully franked dividend per share of 48.5 cents, which indicates a 50% payout ratio. This decision has been made as the board holds confidence in the strong cash flows of the business.

Ramsay’s light at the end of the tunnel?

Ramsay has indicated that the second half will be highly contingent on how the COVID-19 situation transpires. Vaccine rollouts have reduced the number and severity of cases based on early data. However, uncertainty remains.

The private hospital operator expects to continue investing in expanding the company’s footprint. Notably, during the half, Ramsay sold 9 facilities in Germany and 2 in France.

Ramsay expects that surgeries placed on the backburner during COVID-19 disruptions will drive volumes over the next half. Some of these surgeries will also be from public waitlists, as Ramsay helps alleviate the public sector pressure.

Finally, the company provided no guidance for FY21 due to the ongoing uncertainty. It seems that shareholders are not quite out of the woods yet.

CEO commentary

CEO and managing director, Craig McNally, provided commentary on today’s first-half results:

The result reflects the operational and financial resilience of the Ramsay business. Despite the disruption caused by the pandemic, we continued to invest in the business across all regions as we look to maintain our competitive advantage and optimise our portfolio of facilities

The Ramsay Health share price has unsurprisingly suffered downward pressure in the last year. Underperforming the broader market, Ramsay suffered a 15.4% fall over the 12 months gone.

More reading

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Motley Fool contributor Mitchell Lawler owns shares of Ramsay Health Care Limited. The Motley Fool Australia has recommended 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.

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Air New Zealand Limited (ASX: AIZ) has posted a 93% loss in earnings before taxation and declined to give forward guidance other than “a significant loss in 2021”.

The Kiwi airline released its interim results today for the half-year ending 31 December. In opening trade, the Air New Zealand share price lifted 2.4% to $1.495 per share.

The airline’s earnings before other significant items and taxation was negative NZ$185 million for the half-year ending 31 December. It was positive NZ$198 million the prior year.

Operating revenue was down 59%, totalling just NZ$1.2 billion. The net loss after tax amounted to NZ$72 million.

Similar to its Australian rival Qantas Airways Limited (ASX: QAN), domestic and freight businesses kept some revenue coming in for the Kiwi carrier.

Cargo revenue was actually up 91% for the December half, while domestic flights were back to 76% of pre-COVID levels.

Air New Zealand chief Greg Foran said his team should be proud of the half-year results.

“We wouldn’t be operating the level of domestic and cargo capacity we are without their extraordinary efforts.”

Air New Zealand burning through cash

Foran warned the company has depleted NZ$1 billion of its own cash reserves while also receiving government assistance, but this would not extend into the second half.

The employee headcount has been slashed 38% to trim costs.

“From the start of this crisis we have had to make a lot of incredibly tough calls, especially, where our people are concerned, and that is never something we would do lightly,” said Foran.

“But it has all been with the sole purpose of ensuring Air New Zealand’s survival.”

The New Zealand government has given a written guarantee that it would remain a majority shareholder of the carrier.

No dividend will be paid out for the 2021 financial year.

Foran had high hopes for the coming year, due to the arrival of coronavirus vaccines.

“The strong recovery in domestic travel has been really exciting because it shows that when people have confidence to travel, they will,” he said.

“With the rollout of the vaccines underway around the world and here in New Zealand, this has positive implications for our recovery when borders open.”

Air New Zealand share price on the move

The Air New Zealand share price was down 2.34% and closed at $1.46 yesterday as a new COVID-19 cluster broke out in Auckland. Three Australian states today closed the one-way bubble that allowed travellers from New Zealand to avoid quarantine upon arrival.

The airline’s share price on the New Zealand exchange was also up 1.27% this morning.

More reading

• Qantas (ASX:QAN) share price on watch after $1.1 billion loss
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• Can ASX travel shares stage a comeback?
• Share prices of travel shares soar, Corporate Travel (ASX:CTD) and Webjet (ASX:WEB) report
• Why ASX travel shares were smashed on Friday

Motley Fool contributor Tony Yoo owns shares of Qantas Airways 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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Link Administration Holdings Ltd (ASX: LNK) shares are on the rise today after the company released its FY2021 half-year (1H21) results this morning. At the time of writing, the Link share price has edged 2.11% higher to $4.83.

Let’s take a look at what the financial services business reported.

Link earnings update

The Link share price is edging higher in morning trade despite the company reporting 1H21 revenue of $597 million. This compares to $624 million in revenue for the prior corresponding period (pcp).

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) dropped to $137 million in 1H21 compared to $163 million in the pcp.

Link posted a statutory net profit after tax (NPAT) of $31 million compared to NPAT of $29 million in the FY20 first half.

In positive news boosting the Link share price, earnings per share (EPS) was slightly up from 5.2 cents in 1H20 to 5.8 cents in 1H21.

The board declared a 60% franked interim dividend of 4.5 cents per share. This compares to 6.5 cents per share in the pcp.

CEO comments

Reflecting on Link’s 1H21 performance, CEO and managing director Vivek Bhatia said: 

Link Group has successfully navigated some challenging external conditions, demonstrating financial resilience. Our financial performance was underpinned by high levels of recurring revenue and strong free cash flows. We have clear strategic priorities that will continue to strengthen our capability to capture future opportunities…

Link Group has demonstrated financial resilience during 1H 2021, providing a strong platform from which the business can resume earnings growth in FY 2022. Our core businesses have strong market positions and clear strategic ambitions. Trading to date has been in line with expectations, with European activity remaining subdued due to the extended COVID-19 related lockdowns in key jurisdictions.

Link share price snapshot

Link provides support services that help its clients manage their equities, pensions and superannuation, investments, property and other financial assets.

Over the past year, the Link share price has fallen by around 22%. Year to date, Link shares have increased by 0.63%.

Based on the current Link share price, the company has a market capitalisation of around $2.5 billion with 535 million shares outstanding.

More reading

• Here’s why the Link (ASX:LNK) share price is edging higher today
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Gretchen Kennedy 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.

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

What happened

Shares of GameStop (NYSE: GME) were trading moderately higher on Wednesday until about 1 p.m. EST, when they started gaining a little momentum. Then, seemingly out of nowhere, the stock absolutely exploded higher. Trading was halted several times as it rapidly climbed to finish 104% higher for the day. And it’s still climbing after hours.

So what

Earlier this year, GameStop stock had an epic short squeeze, orchestrated by a group on Reddit called Wallstreetbets. This group noticed that short interest for GameStop stock was over 100%. With a clever combination of buying common shares and call options (called a gamma squeeze), the group was able to cause the price per share to go up, forcing many short-sellers to close their positions for massive losses.

When the dust from the short squeeze settled, short interest for GameStop stock plummeted. Only about 40% of the float was shorted as of Jan. 29. More recent data isn’t available yet to know what it is exactly today. But the decline in short interest appeared to mark the end of the GameStop saga. The stock fell roughly 90% from peak highs.

Except, apparently, everyone simply regrouped for round two. 

Traders were out in full force late this afternoon, bidding GameStop stock back up. To be clear, 40% short interest is still significant enough to spark a mini short squeeze. However, it’s possible shorts decided to short GameStop again, thinking it was all over. After all, the stock was still trading more than 10 times where it traded before all of this began. If short interest has increased any since Jan. 29, then this could be a wild ride yet again.

Now what

Last time, many GameStop bulls felt cheated because of the trading restrictions Robinhood and other brokerages put on the stock. In a recent interview with Dave Portnoy, Robinhood’s CEO said it moved to restrict trading because it feared an impending liquidity issue if it didn’t act. Since then, the company has raised a lot of money, seemingly mitigating this risk. Considering all the negative press it received last time, it’s fair to wonder if Robinhood would restrict the buying of GameStop stock again. If it doesn’t, it will be interesting to watch just how high GameStop stock can fly.

For me, I’ll be watching with interest. But I’m not a GameStop stock buyer today. When I invest, I’m looking for strong companies with long runways for growth. GameStop doesn’t fit that description for me.

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

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Jon Quast 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 Zip Co Ltd (ASX: Z1P) share price will be on watch today after revealing strong levels of growth in its FY21 half-year result.

What did Zip report?

Zip revealed that it generated record revenue of $160 million, which was growth of 130% year on year. At December 2020 it was generating annualised revenue of at least $480 million.

This revenue growth was made possible thanks to total transaction volume (TTV) growth of 141% year on year to $2.32 billion – this was annualising at $7.5 billion at December 2020.

Zip reported that it made positive cash earnings before tax, depreciation and amortisation (EBTDA) with cash gross profit margins increasing to 54%. The buy now, pay later company said that it is demonstrating market leading unit economics whilst investing for global growth.

The company said that the addition of Quadpay delivered a step change in unit economics, revenue yield and capital efficiency for the company. Revenue as a percentage of TTV was 6.89%, the gross profit margin as percentage of TTV was 3.71% and the blended book is now recycling every three months on average.

Zip said that it now has more than 5.7 million active customers, which was an increase of 217% year on year. It also has more than 38,500 merchants across the US, Australia, New Zealand and the UK.

The company said that its credit performance continues to deliver market leading results with net bad debts of 1.93% in Australia, demonstrating the strength of Zip’s proprietary real-time credit decision technology.

New growth and partnerships

Zip said that it has secured key partnerships with Gamestop, Fanatics, Newegg and Sunglass Hut in the US. It has also partnered with Harvey Norman Holdings Limited (ASX: HVN), Domayne and Adore Beauty Group Ltd (ASX: ABY) in Australia.

The buy now, pay later business also said that it has launched in the UK in December 2020 with a number of brands including Boohoo, JD Sports, Fanatics and Cotton On with a strong global pipeline building.

Zip said it has now launched ‘Tap & Zip’ in Australia, becoming a Visa principal issuer. It has enabled a Chrome extension in the US, which enables users to pay later on any website.

It has established a new markets team to explore strategic and opportunistic expansion. During the half, a number of investments were made in the buy now, pay later space across Europe and the Middle East. Canada is currently in the pilot stage and scheduled for a soft launch in the second half of FY21 to support the US merchant base.

Zip business was formally launched after its beta period, with a refreshed brand, signing names like eBay and Facebook as partners. This allows small businesses to buy now, pay later for advertising and working capital.

Zip share price movements

The Zip share price has been shooting higher this year. Since the start of 2021, Zip shares have risen higher by 112%.

Outlook

Zip said that it has global momentum and it has set the foundations to accelerate growth across the world over the rest of FY21. It’s looking for new opportunities and strategic partnerships to expand the footprint.

It also said that it has a strong pipeline of global retail partnerships. Zip is going to keep focusing on healthy and sustainable unit economics.

More reading

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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.

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The Universal Store Holdings Ltd (ASX: UNI) share price is charging higher on Thursday.

In morning trade the fashion retailer’s shares are up 6.5% to a record high of $6.50.

This means the Universal Store share price is now up 71% from its November IPO price of $3.80

Why is the Universal Store share price charging higher?

Investors have been buying Universal Store shares following the release of its half year results this morning.

For the six months ended 31 December, the company reported an impressive 23.3% increase in sales to $118 million. This was driven by like for like store sales growth of 19.1% and a 128.3% jump in online sales. This offset store closures in Melbourne between August and October.

Positively, the company reported an increase in both its gross and operating margins. This underpinned a 63.6% increase in underlying net profit after tax to $21.1 million. In light of this strong performance, the Universal Store Board has declared a fully franked interim dividend of 5 cents per share.

The company received support from the JobKeeper program during the half and recorded a net benefit of $3 million. However, it has decided to repay these funds in the second half.

Outlook

Universal Store has started the second half very strongly. It has achieved sales growth of 23.5% during the first seven weeks of the half. This is being driven by like for like sales growth of 28.2%, which offset store closures during recent lockdowns.

Positively, its gross margin has firmed and remains in line with the first half run rate.

Looking ahead, management notes that it will soon be cycling a period of store closures in April and May. This should bode well for sales growth in these periods.

In addition, it is “encouraged by the prospects for new occasions and other triggers for shopping and wardrobe renewal that will occur for our customers as “post Covid-19 normal” continues to emerge.”

However, due to the ongoing uncertainty relating to COVID-19, the company is not providing guidance for FY 2021 at this time.

More reading

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

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Warren Buffett has a long track record of using stock market crashes to his advantage. After all, his strategy centres on seeking to buy high-quality companies when they trade at low prices. Often, such a situation occurs when a market downturn has recently taken place.

Since the next stock market decline could occur at any time, being prepared for the next one could be a sound move. By holding some cash, it is possible to be ready to capitalise on lower stock prices that may only be available temporarily.

The next stock market crash may not be far away

Predicting when the next stock market crash will occur is extremely difficult. After all, it can be prompted by a large number of factors that themselves are tough to estimate. For example, the 2020 market decline was caused by coronavirus, the course of which very few investors were able to predict even once it began to take place.

Therefore, being in a position of constant preparedness for the next bear market could be a sound move. History suggests that no stock market rise ever lasts in perpetuity. This means that an investor who waits for the next market downturn may be able to use it to buy cheap shares, as Warren Buffett has done previously.

Holding cash as per Warren Buffett

Warren Buffett holds significant sums of cash at all times. This provides him with the means to invest at short notice should opportunities arise. Furthermore, it means he is liquid, in terms of having access to funds that can quickly be invested, in case there is a sudden resurgence in share prices. This took place following the 2020 stock market crash, when many share prices experienced a rally after their short-term declines.

Of course, holding cash could mean lower returns than the stock market offers during a period of growth. Low interest rates mean that it is now difficult to obtain an inflation-beating return in some areas. However, this could be offset by the chance to be ready for the next market downturn, when low share prices may provide scope for long-term capital gains.

Investing in solid businesses

As well as holding cash in preparation for the next stock market crash, analysing current holdings to make sure they are financially sound could be a shrewd move. For example, ensuring they have solid balance sheets and competitive advantages in a changing world economy may lead to less risk and higher returns.

Furthermore, holding stocks that have wide margins of safety could be a logical approach over the long run. When combined with having cash on hand in case a market downturn suddenly takes place, this may lead to less risk and higher returns in what may prove to be a volatile stock market over the coming years.

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Motley Fool contributor Peter Stephens 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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