Remember that stigma about online dating? When ‘meeting someone online’ was viewed very sceptically? Well, that stigma has most certainly gone the way of the dodo. The same could be said of today’s topic of discussion: bitcoin.

Bitcoin and cryptocurrencies exploded into financial pop culture back in 2017, when the value of bitcoin surged in what could only be described in hindsight as a bubble. At the start of the 2016 calendar year, one bitcoin was trading for under US$500. But the same coins were, by the end of the following year, commanding a price of almost US$20,000. Of course, we all know how that ended.

By the same time the following year, bitcoin was back under US$3,500. The bubble popped, end of story. Bitcoin was posthumously written off as a fool’s gambit (not the good kind of Fool) and a pointless display of frenzied speculation, akin to the infamous ‘tulip mania’ of the 17th century.

Well not quite, as it turns out. Bitcoin is back baby, and with a vengeance too. As we speak (or write), one bitcoin is trading at a price of US$21,759. That’s actually above the 2017 peak and just off a new, all-time high slightly above US$22,000 that we saw earlier today.

Those of us who remember 2017 might ask ‘how?’, or perhaps more pertinently, ‘why’? The lesson was learnt, wasn’t it?

Wealthy investors lose their bitcoin stigma

Well, reporting in the Australian Financial Review (AFR) this week posits some answers. And one of them is the dreaded ‘this time it’s different’. The difference this time is apparently a wider attraction. It’s widely believed that the first round of bitcoin appreciation was driven by retail money – lots of small investors having a punt.

But according to the AFR, this time it’s ‘big money’ that’s driving bitcoin higher. Bitcoin has apparently overcome its stigma among the wealthy class of investors. The report quotes Christian Armbruester, the founder of a London-based investment firm for wealthy clients with US$670 million under management. Mr. Armbrester claims that bitcoin has earned a reputation as a legitimate asset class and has “a place in a diversified portfolio”.

A mainstream asset?

He’s not the only one either. Last month, we covered how some ASX fund managers are also exploring the cryptocurrency space. In a world of near-zero interest rates, suddenly bitcoin has a certain appeal it seems. This has also been assisted by bitcoin moving from having a reputation as a shady, quasi-criminal payment system to being accepted by mainstream payment platforms like those offered by PayPal, Mastercard and Visa.

The AFR also quotes Kevin Murcko, founder and CEO of cryptocurrency exchange CoinMetro as to why this might be the case:

Normally in times of crisis, people run to cash, but who in their right mind wants to be cash-rich at a time when major economies are devaluing their currencies?… You could say that COVID-19, the US election, Brexit, and, well, the entirety of 2020 have altered the way many in traditional finance view the value of digital assets.

Finally, the AFR pints out that analysts at investment bank JPMorgan Chase, “suggest Bitcoin only accounts for 0.18 per cent of family office assets, compared with 3.3 per cent for gold ETFs. Tilting the needle from bullion to the cryptocurrency would represent the transfer of billions in cash”. It also reports that some crypto-sceptical fund managers are buying bitcoin purely as a hedge ‘just in case they’re wrong’.

Needless to say, this will be an interesting arena to watch in 2021.

More reading

• These are the 7 best ASX retail shares in 2020
• 2 ASX growth shares to buy that keep delivering wins
• Rio Tinto (ASX:RIO) share price on watch after naming new CEO
• Why the Afterpay (ASX:APT) share price just smashed its record high
• Why the PayGroup (ASX:PYG) share price surged 11% today

Sebastian Bowen owns bitcoin and shares of JPMorgan Chase, Mastercard, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Mastercard, PayPal Holdings, and Visa and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended Mastercard and PayPal Holdings. 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 COVID-19 pandemic has changed the landscape for many ASX retail shares in 2020, with many stores forced to close while lockdown restrictions were in place.

But as one door closes, another often opens, as it did for some retailers, in the form of e-commerce.

Unsurprisingly, we’ve seen e-commerce boom this year, as people shifted their shopping habits from brick-and-mortar stores to online.

On that note, let’s take a look at the 7 top performing ASX retail shares of 2020 so far.

Company	1-year share price increase	Current share price	Market capitalisation
1. Redbubble Ltd (ASX: RBL)	525%	$6.32	$1.7 billion
2. Temple & Webster Group Ltd (ASX: TPW)	360%	$10.34	$1.2 billion
3. Kogan.com Ltd (ASX: KGN)	152%	$18.38	$1.9 billion
4. Eagers Automotive Ltd (ASX: APE)	39%	$13.96	$3.6 billion
5. Accent Group Ltd (ASX: AX1)	25%	$2.25	$1.1 billion
6.Wesfarmers Ltd (ASX: WES)	22%	$51.49	$57.9 billion
7. JB Hi-Fi Limited (ASX: JBH)	12%	$47.23	$5.36 billion

Redbubble

Redbubble is the clear winner on this list, with its share price gaining by a mammoth 525% for the year. This means if you had invested $1,000 in Redbubble a year ago and held on to your shares, your money would be worth over $6,000 today.

The Redbubble share price gain is even more remarkable considering the company’s shares were as low as 40 cents back in March when the pandemic was just starting to make its financial impact known. If you had invested your money in Redbubble shares in March instead, that return would be a staggering 1,480%.

The gain in the Redbubble share price has been on the back of very strong performance after the initial market panic. In the company’s latest quarterly update, it reported a 562% increase in accessories sales, driven mostly by increased demand for trendy face masks.

Redbubble floated on the ASX back in 2016 but has been around since 2006, when it was founded in Melbourne.

Temple & Webster 

The furniture and homewares retailer is another company that benefitted from the pandemic-induced lockdowns.

The Temple & Webster share price rose by 360% in one year. It was trading at $4.18 before the onset of the COVID-19 crash, and fell all the way to $1.57 on 23 March.

The company’s e-commerce business then started to take off during the period of lockdown restrictions, and by the end of April, second half revenue had grown by 74% year on year to date.

That growth continued throughout the rest of FY20. In the company’s final FY20 result, Temple & Webster reported that full year revenue grew 74% to $176.3 million.

The company said it played its part in helping Aussies set up their homes to deal with the impacts of the crisis. Management believes that many people who may not have shopped for their furniture and homewares online before are experiencing the benefits of the channel, including convenience and value.

Kogan

Kogan is another major, pure e-commerce player that has had a fantastic 2020, with its share price gaining over 150% in twelve months. 

The Kogan price share performance is a reflection of the company’s strong results in FY20, when it saw net profit grow by 55.9% and gross sales increase by 39.3%.

What’s interesting about Kogan is that it’s been able to increase its gross margins year on year since FY17.  The company’s gross margin was 17.9% in FY17, 19.5% in FY18, 20.7% in FY19 and 25.4% in FY20. 

Kogan is always on the lookout to diversify its earnings, acquiring brands such as Matt Blatt Furniture and Mighty Ape this year.

Eagers Automotive

Many investors might not be too familiar with this share, but Eagers Automotive packs a good punch when it comes to offering customers new and used motor vehicles. The company has a long and proud history that extends over 100 years, and currently has over 250 locations throughout Australia and New Zealand.

The Eagers share price has done extremely well this year, gaining by 39%, as people changed their commuting habits and avoided public transportation.

In its latest guidance to the market, Eagers said it expected to deliver an improved full-year result. The company announced that underlying operating profit before tax is estimated to be in the range of $195 million to $205 million, compared to the $100.4 million achieved in the prior corresponding period.

If it turns out the pandemic alters some commuters’ mode of transport preferences longer term, who knows where the Eagers share price will be one year from now.

Accent Group

Here’s another share some investors may not have heard about, but which has performed tremendously this year. 

Accent is a footwear retailer that holds the license for some hugely popular shoe brands such as Dr Martens, Saucony, Skechers, Timberland, and Vans among others. It also owns the Athlete’s Foot, Platypus and Hype DC retail outlets.

The Accent share price has returned 25% for investors this year, after dropping by 70% in March.

Accent shares surged during lockdowns as consumers changed their habits and increased their focus on personal fitness. The company’s digital business grew significantly this year as consumers also shifted to online shopping in droves.

Accent recorded a 129% increase in sales compared to the same period last year.

Also growing is the company’s store network. Despite the pandemic, Accent is on track to open approximately 80 new stores in FY2021. This includes new concept stores, such as Stylerunner.

Wesfarmers

The conglomerate is perhaps the odd one out in this list, as the diversity and size of its business means it’s not a pure retail player.

Nevertheless, the Wesfarmers share price is one to envy this year, reaching its all time high of $51.91 earlier this week.

The company’s success has been underpinned by strong sales from its retail network. This is especially true of its Bunnings business, which has continued to grow its sales in comparison with pre-coronavirus levels.

Wesfarmers reported that Bunnings continues to deliver strong sales in FY21, up 25.2% over the prior corresponding period.

The company’s Kmart and Officeworks businesses also performed well despite widespread store closures, delivering sales growth higher than the prior corresponding period.

These solid results were supported by strong demand for home office and furniture products.

JB Hi-Fi

Last but not least, is the JB Hi-Fi share price, which has returned 12% in one year.

Most people are probably familiar with this home entertainment retailer. The flagship brand, along with its other brand, The Good Guys, has returned positive results this year as more people purchased home entertainment products.

In its FY20 results, the company reported group net profit after tax (NPAT) of $332.7 million, up 33% from the prior year.

It will be interesting to watch how the JB Hi-Fi share price performs once the economy fully reopens, and people get back to working in the office.

More reading

• Why this broker thinks the Wesfarmers (ASX:WES) share price can go higher
• Could ASX retail shares be the best ASX shares to own right now?
• 3 exciting ASX tech shares to buy
• 3 reasons why Kogan (ASX:KGN) shares could be a buy
• Wesfarmers and these ASX shares just hit 52-week highs or better

Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Accent Group, Kogan.com ltd, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The two ASX shares in this article keep delivering wins for shareholders and generating growth.

Indeed, these two businesses produced some good news earlier today:

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts ASX share with a market capitalisation of around $2.5 billion.

Listed investment company WAM Research Limited (ASX: WAX), run by fund manager Wilson Asset Management, is a fan of the business and it’s currently one of the biggest 20 holdings in the portfolio.

Bapcor released a trading update today. It said that its strong growth has continued since the October trading update.

For the five months to the end of November, group revenue was up around 26%. Management said the company was achieving operating leverage from lower expenses in areas such as travel and other areas of discretionary expenditure, as well as lower interest rates and the contribution from Truckline which was not included in the prior corresponding period.

For the first half of FY21 Bapcor is expecting to achieve revenue growth of at least 25% over the prior corresponding period in FY20, with net profit after tax (NPAT) increasing by at least 50% compared to the prior corresponding period.

Bapcor reminded investors that trade businesses, like Burson, typically perform well in difficult conditions, which is what the country is going through at the moment. Bapcor’s trade and wholesale businesses represent over 80% of Bapcor’s overall business with retail making up the rest.

The ASX share also said that its retail revenue was up around 40% over the prior corresponding period. This growth has been supported by changes in the overall retail ‘go to market’ strategy with improvements in its e-commerce capabilities, improved catalogues, expanded and improved product ranges and continued store expansion. All of this is expected to continue to drive market growth from here.

Bapcor also said that the construction of its new Victorian distribution is progressing well with the building expected to be handed over in February 2021 and the automated picking system operational in the following six months. Management said that this is an exciting development that will deliver significant operational benefits.

According to Commsec estimates, at the current Bapcor share price, it’s valued at 19x FY23’s estimated earnings.

Pro Medicus Ltd (ASX: PME)

Pro Medicus describes itself as a leading medical imaging IT provider that was founded in 1983. According to the ASX, it has a market capitalisation of $3.25 billion.

Pro Medicus announced today it had signed a 5-year, $18 million deal with MedStar Health. The company’s Visage technology will replace MedStar’s legacy PACS across 10 hospitals, representing the largest health system in the Maryland and District of Columbia (DC) region.

The contract is for the full suite of Visage 7 modules, including Visage 7 Viewer, Visage 7 Open Archive and Visage 7 Workflow. The Visage 7 platform will be fully deployed in the public cloud using the Google Cloud Platform.

Pro Medicus said this contract is a transaction-based model with potential upside, and it extends Pro Medicus’ rapidly growing footprint North America.

Dr Sam Hupert, Pro Medicus CEO, said: “MedStar went through an extensive evaluation process including a pilot that not only benchmarked Visage 7 compared to on-premise systems from other vendors, it served to verify the speed of Visage 7 in the public cloud.

“Unlike systems from other vendors, Visage has been developed from the ground up for cloud deployment. Traditionally, our clients have deployed Visage in their own “private cloud” where all images are sent to a single, central server and streamed on demand from there. This deal signifies a shift in the way US healthcare providers are now starting to think about public cloud platforms.”

This certainly isn’t the first major deal Pro Medicus has won in 2020. It has renewed with Zwanger-Pesiri for a $8.5 million deal, it has won a $10 million deal with Ludwig-Maximilians University, it won a $25 million contract with NYU Langone Health and it signed a $22 million deal with Northwestern Memorial Healthcare.

At the current Pro Medicus share price it’s valued at 68x FY23’s estimated earnings according to Commsec.

More reading

• ASX 200 rises on Thursday
• Why Codan, Pro Medicus, Uniti, & Zip shares are storming higher
• Citigroup picks the best ASX retail stocks to own for 2021
• Why the Bapcor (ASX:BAP) share price is rocketing 9% higher today
• Here’s why the Pro Medicus (ASX:PME) share price is storming 5% higher

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

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The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Friday after it announced the appointment of its new chief executive after the market close.

What did Rio Tinto announce?

This afternoon the mining giant announced that it has found a replacement for outgoing chief executive, J-S Jacques.

According to the release, the company has appointed its Executive Director and Chief Financial Officer, Jakob Stausholm, as its new leader. He will commence in the role on 1 January 2021.

The company notes that since joining Rio Tinto in 2018, Mr Stausholm has played a leading role in its strong performance. He has maintained strong capital allocation discipline and delivered significant shareholder returns, while at the same time strengthening its balance sheet.

The new chief executive is very experienced. He has 25 years in leadership roles in capital intensive and service industries across Europe, Latin America, and Asia-Pacific. Prior to joining Rio Tinto, Mr Stausholm was the Chief Financial Officer and Strategy & Transformation Officer of A.P. Moeller – Maersk A/S.

“Ideal qualities for our next chief executive.”

Rio Tinto’s Chairman, Simon Thompson, believes Mr Stausholm is a perfect fit for the role.

He commented: “I am pleased to announce the appointment of Jakob as Chief Executive of Rio Tinto. His blend of strategic and commercial expertise, strong values and a collaborative leadership style are the ideal qualities for our next chief executive.”

“Jakob has already made a significant contribution to the performance of the Group in his role as Chief Financial Officer. He has a proven track record as a senior executive with deep industrial and resources experience spanning strategy development and technology, as well as financial and risk management. He has also demonstrated the ability to build effective relationships and has a strong personal commitment to the role of business in promoting sustainable development,” he added.

Rio Tinto’s incoming Chief Executive is certainly ready for the challenge of leading one of the world’s largest miners.

Jakob Stausholm commented: “I am truly delighted and humbled to be given the opportunity to lead this tremendous company. Since I joined two years ago, I have spent extensive time at our operations, meeting our excellent people and have also engaged with many of our valued partners.”

“Rio Tinto’s purpose is to produce the materials essential to human progress and I remain deeply committed to this after the difficult times we have faced during 2020. I look forward to leading Rio Tinto and working with my colleagues across the business to ensure that we maintain strong safety, operational and financial performance, while progressing our growth, sustainability and technology strategies. I am also acutely aware of the need to restore trust with Traditional Owners and our other stakeholders, which I view as a key priority for the company,” he added.

What now?

With Mr Stausholm moving to the top job, Peter Cunningham will be appointed interim Chief Financial Officer from 1 January. He was previously Group Controller for Rio Tinto and has held a number of senior finance and leadership roles across the company over the last 27 years.

Outgoing Chief Executive, J-S Jacques, will step down from his role from 1 January 2021 and will leave the company on 31 March 2021.

More reading

• What today’s economic outlook means for the BHP (ASX:BHP) share price
• 2 blue chip ASX dividend shares to buy
• Brokers warning high iron ore prices are unsustainable
• Will China’s trade war torpedo the Rio, Fortescue and BHP share prices?
• ASX 200 Weekly Wrap: ASX 200 hits a 6! Thank iron ore

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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The Afterpay Ltd (ASX: APT) share price has reached the magic $120 mark today as it continues to break records. Shares of the buy now, pay later (BNPL) giant reached as high as $120.77 intraday trade, but have since retreated to $120.31, up 4.98% at the time of writing.

It has been an incredible week for the Afterpay share price, which is up 25% in just the last 5 days. Its recent performance means shares in the company have now climbed an astounding 315% since this time last year.

What has been driving the Afterpay share price?

Afterpay needs no introduction, despite only joining the S&P/ASX 200 Index (ASX: XJO) 2 years ago. Its shares have been rising ever since.

Recently Afterpay became part of an exclusive club, storming into the S&P/ASX 20 Index (ASX: XTL). The shakeup comes on the back of disruption caused by COVID-19, evidenced by the fact that a growth share is replacing the blue-chip Insurance Australia Group (ASX: IAG) on the index.

Furthermore, the news also means the ASX juggernaut will be joining the S&P/ASX 50 Index (ASX: XFL) come 21 December.

Strong business performance

Another reason for Afterpay’s impressive share price performance is its continued strong business performance.

In late October, the BNPL giant released its first quarter results. Management stated that Afterpay had seen strong performance across all regions, leading to underlying sales increasing from $1.9 billion to $4.1 billion in just one year, an increase of 115%. The sales total marked yet another record in Afterpay’s impressive run.

Afterpay’s active customers also increased globally, rising 98% to 11.2 million within the year. Unsurprisingly, the company reported the majority of growth was driven by younger Gen X and Gen Z customers.

Foolish takeaway

With Afterpay’s impending addition to the ASX 20 index come 21 December, shareholders have been bidding up the S&P/ASX All Technology Index (ASX: XTX)’s largest member. The index inclusion will result in a flow of capital from passive and active funds into Afterpay’s stock.

At the time of writing, the Afterpay share price is sitting at $120.31 per share.

More reading

• Why 2021 may be an even better year for ASX investors
• The Tyro (ASX:TYR) share price is down 20% in one month. Time to buy?
• Openpay (ASX: OPY) share price rockets up 8% after major announcement
• Why the Afterpay (ASX:APT) share price is not the only rising star this year
• How the 21st century actually started in 2020

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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PayGroup Ltd (ASX: PYG) shares were charging higher today following release of the company’s trading update for November. By the market’s close, the PayGroup share price was up 11.11% to 60 cents.

Let’s take a closer look and see how the human capital management (HCM) solution company performed last month.

What’s driving the PayGroup share price higher?

The PayGroup share price was on a tear today after the company reported trading conditions for its subsidy, AstuteOne, have rebounded strongly from the impacts of COVID-19.

The company said that AstuteOne delivered a 43% increase in timesheets throughout November for both Australia and New Zealand. This was compared with the June period, during which the business was most heavily impacted by COVID-19 restrictions.

PayGroup highlighted that AstuteOne’s clients, which primarily comprise workforce management companies, provide a leading indicator of employment trends. Further to this, the company believes that the increase in labour hire indicates an employment recovery.

In addition to the sound result, PayGroup’s Treasury Services partner recorded a 60% monthly revenue increase over the same timeframe.

Astute pleasingly signed on 37 new clients during the first half of 2021, representing total contract value of $1.1 million. The prime minister’s business stimulus package for apprentices has seen strong uptake by government training organisations transitioning to the AstuteOne software-as-a-service platform.

Payroll HQ acquisition update

On 14 December, PayGroup completed its acquisition of Payroll HQ. The company predicts the takeover will lead to strong sales of TalentOz in both Australia and New Zealand.

TalentOz, which uses PayGroup’s full suite of products, is being offered across 41 countries.

What did the management say?

PayGroup managing director Mr Mark Samlal commented on the trading conditions for AstuteOne, saying:

Increased activity for our clients in the workforce management sector is a leading indicator of economic recovery. It’s very pleasing to see the increased business confidence in Australia and New Zealand, reflecting more buoyant employment conditions following the easing of lock down restrictions. This is having a positive impact on volumes for our AstuteOne business and the acquisition of new clients.

Our revenues will continue to grow in FY21 as new clients increase their hiring, and as existing clients increase their volumes as demand increases. Our new GTO clients have hiring volumes that are directly linked to apprentices being hired in greater numbers. These GTOs are seeing a greater need to digitise their pay-to-bill workflows. 

PayGroup is scheduled to release its updated sales data for FY21 in the first week of the new calendar year. 

More reading

• PayGroup (ASX:PYG) share price rocky following half year results

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

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The S&P/ASX 200 Index (ASX: XJO) went up by 1.2% today to 6,757 points.

Here are some of the highlights from the ASX:

Transurban Group (ASX: TCL) asset sale and traffic update

The toll road operator revealed that it has agreed to sell a 50% interest in its Chesapeake assets to AustralianSuper, Canada Pension Plan Investment Board (CPP Investments) and UniSuper for gross sale proceeds of AU$2.8 billion, plus a potential earn-out between FY24 and FY26 of up to AU$93 million.

Chesapeake comprises Transurban’s Greater Washington Area operational assets.

Transurban said the sale introduces strategically aligned partners with a track-record of working alongside Transurban in Australia on assets in Queensland and Sydney. The roll road business said that AustralianSuper, CPP Investments and UniSuper each bring significant infrastructure investment experience and relationships to the partnership.

The Transurban Chesapeake partners have exclusive development rights to invest alongside Transurban on future brownfield and greenfield opportunities in the Commonwealth of Virginia, State of Maryland and Washington DC as well as enhancements to existing concessions.

Transurban CEO Scott Charlton said: “This transaction realises significant value for security holders while enabling accelerated growth in North American and Australia, where we see a number of opportunities starting to materialise.

“The Transurban Chesapeake partners are committed to growing alongside Transurban in North America and we look forward to pursuing new opportunities with their financial and strategic support.”

The Transurban share price went up 1.2% today.

Pro Medicus Ltd (ASX: PME)

Pro Medicus announced today it had signed a 5-year, $18 million deal with MedStar Health. The company’s Visage technology will replace MedStar’s legacy PACS across 10 hospitals, representing the largest health system in the Maryland and District of Columbia (DC) region.

The contract is for the full suite of Visage 7 modules, including Visage 7 Viewer, Visage 7 Open Archive and Visage 7 Workflow. The Visage 7 platform will be fully deployed in the public cloud using the Google Cloud Platform.

Pro Medicus said this contract is a transaction-based model with potential upside, and it extends Pro Medicus’ rapidly growing footprint North America.

The Pro Medicus share price went up by 3.3% today.

Bapcor Ltd (ASX: BAP)

Auto parts business Bapcor released another trading update today.

The company was pleased to tell investors that its strong growth has continued since the October trading update.

For the five months to the end of November, group revenue was up around 26%. Management said the company was achieving operating leverage from lower expenses in areas such as travel and other areas of discretionary expenditure, as well as lower interest rates and the contribution from Truckline which was not included in the prior corresponding period.

For the first half of FY21 Bapcor is expecting to achieve revenue growth of at least 25% over the prior corresponding period in FY20, with net profit after tax (NPAT) increasing by at least 50% compared to the prior corresponding period.

Darryl Abotomey, Bapcor CEO and managing director, said: “We are very pleased with the strong performance of Bapcor’s businesses. Trade and wholesale represent over 80% of Bapcor’s business, with retail at approximately 20%. Historically, trade focussed businesses perform solidly in difficult economic conditions – which is again borne out of Bapcor’s current performance.”

Bapcor also said that the construction of the new Victorian distribution centre is progressing well. The company said this is an exciting development that will deliver significant operational benefits.

The Bapcor share price went up around 3% today.

Zip Co Ltd (ASX: Z1P)

The Zip share price went up 1% today after the buy now, pay later business announced a capital raising and the successful completion of the placement.

Zip said that it has raised $120 million before costs through its fully underwritten placement at a raising price of $5.34, which was a 4.1% discount to the last traded price on 16 December 2020.

Larry Diamond, the managing director and CEO of Zip said: “The additional growth capital will enable Zip to capitalise on the successful acquisition of QuadPay in the US, scale Zip’s operations in the UK, lead the active pursuit of global growth opportunities and support the launch of Zip Business.”

Zip said that some of the raised money will be used to acquire Spotii, a BNPL operator headquarterd in the UAE as well as Twisto which is a payments platform operating in Czechia and Poland, with the ability to passport licensing across the EU.

More reading

• Leading broker just upgraded these ASX gold stocks to “buy”
• ASX stock of the day: Why are Netwealth (ASX:NWL) shares up 7%?
• Why the ASX 200 could be the Nasdaq of 2021
• Why Codan, Pro Medicus, Uniti, & Zip shares are storming higher
• Some things ASX investors should watch out for in 2021

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’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor and Pro Medicus Ltd. The Motley Fool Australia owns shares of Transurban Group. 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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There’s been no movement in the Etherstack PLC (ASX: ESK) share price today after the company announced a trading halt this morning. Etherstack shares were trading at 64 cents prior to the halt, which was requested by the company pending a further announcement regarding a “material capital raising”.

The Etherstack share price has performed well this year, gaining a huge 220% in year-to-date trading. 

What Etherstack does

Etherstack is a wireless technology company that specialises in developing, manufacturing and licensing mission-critical radio technologies. The company primarily works with wireless equipment manufacturers and network operators around the globe, including the likes of Samsung Electronics and Cisco Systems Inc.

The company was founded and is based in Sydney, but is twice as large offshore than onshore. It first listed on the ASX in 2012 and is focused on the public safety, defence, utilities, transportation and resources sectors.

What happened?

This morning, trading in Etherstack shares was halted as the company announced it would be undertaking a capital raising.

Etherstack stated it would be raising material capital by way of an institutional placement. This means that only institutions, not retail investors, will have access to the additional shares at a discounted price. The company did not state whether the placement was underwritten or not.

What Now?

With the trading halt expected to last until 21 December, it is unlikely any Etherstack shares will change hands until next week. This is unless there is a prior announcement by the company prior to the market’s close on Friday this week.

In announcing the capital raising, it’s likely management is seeking to benefit from the company’s elevated share price. Etherstack shares notably soared by 1358% in June on the back of major contract win announcements. The company’s shares were trading as high as $1.75 as a result of it signing a global teaming agreement with Samsung Electronics for public safety communications.

Since its extraordinary rise, the Etherstack share price fell sharply in early July and has been trading around its current levels over the last six months. 

More reading

• Etherstack (ASX:ESK) share price falls despite solid guidance
• The Etherstack (ASX:ESK) share price is soaring 10% higher today. Here’s why.

Motley Fool contributor Daniel Ewing 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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Qantas Airways Limited (ASX: QAN) has won an appeal to reverse an earlier court ruling that it had inappropriately pocketed JobKeeper payments meant for staff.

The full Federal Court on Thursday quashed the original September judgment made by a single judge. 

The reasoning was that adhering to that decision would have posed an excessive level of administrative burden on employers. The judges deemed that would not have been the intent of the government when it started the COVID-19 assistance scheme.

The dispute between the airline and unions was around wages paid in arrears. Qantas had been counting arrears payments towards the JobKeeper payment, whereas unions argued staff should be receiving both the wage owed and the government subsidy.

Qantas understandably welcomed the decision to uphold its appeal.

“We have always made JobKeeper payments to our employees according to advice from the Australian Tax Office,” said a spokesperson for the airline.

“Most of the JobKeeper payments Qantas has received went straight to employees who were stood down.”

The original decision was considered to have potential to affect other businesses that paid the subsidy out in a similar way to Qantas.

Qantas gets fired up

The airline on Thursday accused the unions of “making false claims and misleading our employees”.

“The court has found we are administering JobKeeper as the government intended,” the Qantas spokesperson said.

“Every Qantas and Jetstar employee, whether they have been working or stood down, was paid at least $1500 per fortnight in line with the requirements of the first stage of JobKeeper, and then the reduced amounts specified by the government.”

The Motley Fool has contacted the Transport Workers’ Union (TWU) and the Australian Services Union (ASU) for comment.

The spokesperson added the company had always paid penalty rates and overtime in the same manner as it did this year.

“This is not something we just started doing during COVID. Rostering arrangements during the stand down period was done in consultation with unions.”

This is not the only spat Qantas has had with its employees this year. The two sides engaged in a public slanging match over the decision to sack 2,000 workers and outsource their functions. 

That saga is headed to the courts after TWU decided it would take legal action. 

The latest good news for Qantas comes after it revealed Wednesday its budget arm Jetstar would be flying above pre-COVID levels by March.

The brand is now enjoying a monopoly in that leisure subsector with TigerAir having folded and Virgin intending to go mid-market.

Qantas shares were down 0.59% in late Thursday trade, to sell for $5.06.

More reading

• Why the Regional Express (ASX:REX) share price is soaring 10% higher today
• Qantas (ASX:QAN) budget flights to exceed pre-COVID levels by March
• ASX 200 rises on Monday
• Why I’m sticking with my Afterpay shares: fundie
• This is when ASX airport shares will take off

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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The CogState Limited (ASX: CGS) share price is going ballistic today, up 44% at the time of writing.

This will come as more good news to longer-term shareholders, who’ve seen the share price rocket 207% since the closing bell on 31 December last year.

By comparison the All Ordinaries Index (ASX: XAO) is up just under 3% over that same time.

What does CogState do?

Founded in 1999, CogState is a neuroscience technology company. The company provides technology and services to measure cognition and optimise the assessment of brain health to aid in new medicine development and provide earlier clinical insights. Its operating segments include clinical trials, healthcare, and research.

CogState shares first listed on the ASX in 2004. At the current share price, CogState has a market cap of approximately $141 million.

Why has the CogState share price been charging higher?

CogState finished last year trading at 39 cents per share. And it hasn’t been a straight uphill run to the current $1.20 per share.

Like most every ASX share, CogState didn’t escape the ravages of the COVID-19 driven market panic earlier this year. From 10 January through to 23 March, the CogState share price plunged 47%. If you were savvy or lucky enough to buy shares at that low, you’d be sitting on a gain of 313% today, far outpacing the 53% gains posted by the broader All Ords. 

CogState shares received a huge lift in late July after the company released its quarterly cash flow statement and business update. That revealed a new record high in sales contracts that made 2020 its most successful financial year to date.

Share largely continued to trend higher from late July until receiving another turbo boost towards the end of October. That boost came on the back of the company announcing an agreement with Japanese pharmaceutical firm, Eisai. In exchange for the right to exclusively distribute CogState’s digital cognitive assessment technologies, Eisai agreed to an upfront payment of US$15 million as well as paying CogState a royalty on sales.

That gives us some background to CogState’s explosive share price growth in 2020.

As for the 44% intraday share price gain today? It appears to be happening on no new market news.

More reading

• Qantas (ASX:QAN) didn’t rort JobKeeper, rules court
• Leading broker just upgraded these ASX gold stocks to “buy”
• Recent development sends the Antisense (ASX:ANP) share price soaring 45%
• 2 high quality ETFs for ASX investors to buy
• Top brokers name 3 ASX shares to sell today

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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