Most ASX investors would be familiar with our flagship S&P/ASX 200 Index (ASX: XJO). But fewer would know about the FTSE 100 Index (FTSE: UKX).

And fair enough too. The ASX 200 covers companies we all know and love (maybe love is a bit strong…), like Woolworths Group Ltd (ASX: WOW), Afterpay Ltd (ASX: APT) and Commonwealth Bank of Australia (ASX: CBA).

In contrast, the FTSE 100 can boast of companies like Unilever plc (LON: ULVR), HSBC Holdings plc (LON: HSBA) and Diageo plc (LON: DGE).

If those aren’t household names for you, I don’t blame you. But they might be in the United Kingdom. The FTSE 100 is Britain’s flagship index, much like the ASX 200 is our own. And like the ASX 200, the FTSE 100 covers 100 of the largest companies on the London Stock Exchange.

So why might you want to invest in the FTSE 100?

Well, there are a few reasons. The first is diversification of course. The ASX is a fine market, but it represents just one country. Investing outside of Australia will always reduce your portfolio’s exposure to Australian risks and problems, such as currency movements or economic issues.

Secondly, the FTSE 100 is home to companies that don’t have any equal here on the ASX. We don’t have a global consumer staples giant like Unilever, for instance. Or a global alcohol company like Diageo (owner of many famous brands like Johnny Walker).

Vaccine maker AstraZeneca plc (LON: AZN) also calls London home, as do oil giants BP plc (LON: BP) and Royal Dutch Shell plc (LON: RDSA) (LON: RDSB). The FTSE even has a tobacco giant in British American Tobacco plc (LON: BATS).

These companies might not be everyone’s cup of English breakfast tea, but there’s no doubt they are very different to the ASX’s largest holdings.

Finally, the FTSE is also known as an index of dividend heavyweights, much like the ASX is. Even after a tumultuous year, the index currently has a trailing dividend yield of 2.3%.

How to invest in the FTSE 100 on the ASX

Many ASX brokerage platforms offer the opportunity to buy UK-listed shares, including those from the big ASX banks for a start.

But there’s another (some might say easier) path to the FTSE 100.

The ASX is home to an exchange-traded fund (ETF) that exclusively tracks the FTSE 100. It is the BetaShares FTSE 100 ETF (ASX: F100). This ETF mirrors the index and holds all 100 of its constituents, including the companies mentioned above. It charges a management fee of 0.45% per annum for the privilege. So if you want to invest in the FTSE 100 Index, that’s probably your easiest option.

More reading

• Cimic (ASX:CIM) share price falls despite positive update
• Why Corp Travel Management, IGO, Limeade, & ResApp are tumbling lower
• This ASX company has increased or maintained dividends for 44 years
• Creso Pharma (ASX:CPH) to commence phase II clinical trials
• Why the Cannindah Resources (ASX:CAE) share price is leaping 155% today

Sebastian Bowen owns shares of Betashares FTSE 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Diageo, HSBC Holdings, and Unilever. The Motley Fool Australia owns shares of AFTERPAY T FPO and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post How to invest in the FTSE 100 Index on the ASX appeared first on The Motley Fool Australia.

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

Brickworks Ltd (ASX: BKW) is in the brick pit business and the brick pit business is booming.

The building materials producer buys large swathes of land on the urban fringes of Australia’s major cities and uses the ground clay to form bricks, which it then sells to the construction industry. It also produces masonry, roofing, and entire facade systems, but a major payoff arrives when urban sprawl crawls far beyond the land it occupies.

At that point, it’s often sitting on a real estate gold mine. This profitability has led Brickworks to increase or maintain its dividend yield for the last 44 years. This consistency has prevailed throughout the 1990’s recession, 2008’s global financial crisis, and the COVID-19 pandemic. Its current grossed-up dividend is 4.5%. 

Brickworks, Soul Patts and Goodman Group

Brickworks started in 1930 and has been a major benefactor of Australia’s surging real estate and construction industries, which has allowed it to diversify its assets to continue funding those dividends.

It owns 39.4% of investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which holds significant stakes in telecommunications, energy, mining, and pharmaceutical companies. Soul Patts has increased its dividend every year since 2000, which is the longest increasing dividend streak on the ASX. 

Brickworks also owns 50% of a joint venture trust with Goodman Group (ASX: GMG) that it uses to fully service those leftover brick pits before renting or selling the land. Brickworks sells its used operational land to the trust at market value, Goodman then builds the infrastructure required, and both companies benefit from increased profitability at every step of the process. 

There’s no shortage of demand for this development expertise. The Brickworks/Goodman joint venture is currently building Amazon’s $500 million robotics warehouse near the future Western Sydney Airport in Badgerys Creek. This is reflected in a more than 60% revenue increase over the past year for the venture.

Brickworks forecast and ASX performance

The interesting counterpoint to Brickworks’ ASX dividend track record is its current and forecasted earnings, with earnings before interest, tax and depreciation down 19% in FY20. 

From January to May 2020 the brickmaker’s Australian earnings dropped 10% and US earnings slumped 30% as it cut 200 jobs at the height of the pandemic.  The recovery has been swift but unexciting, with forecast annual revenue growth of 3.5% slower than the Australian market’s 6% weighted average. 

The Brickworks share price has a year-to-date return of -2.20% and while its 5-year share price return is up by 23%, that’s still less than the market return. Its lower than average price-to-earnings ratio of 9.11 also shows a degree of pessimism from the general market. The company’s performance in the US — where it has a heavy focus on the northeastern states — has also failed to meet recent expectations due to the COVID pandemic.

At Brickworks’ 2020 AGM, however, what Brickworks chair Robert Millner is selling to investors was clear: 

In the current environment of global uncertainty and record low interest rates, we recognise that a reliable source of income is more important than ever to our shareholders. Our ability to once again increase dividends is testament to our strong financial position, prudent capital management and our diversified business model.  

More reading

• Top brokers name 3 ASX shares to buy today
• 2 ASX 200 shares that keep growing the dividend every year
• Leading brokers name 3 ASX shares to sell today
• These 2 ASX shares are the newest “buy” ideas from top brokers
• 2 ASX dividend shares to buy with yields above 4%

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post This ASX company has increased or maintained dividends for 44 years appeared first on The Motley Fool Australia.

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

Creso Pharma Ltd (ASX: CPH) announced today that its target acquisition company Halucenex Life Sciences has made progress in the commencement of a significant phase II clinical trial.  

Creso advised that Halucenex has appointed leading research provider True North Clinical Research as the principal investigator to test the efficacy and safety of psilocybin for the treatment of treatment-resistant post-traumatic stress disorder (PTSD) in veterans and first responders.

Creso Pharma acquires Halucenex 

On 15 March, Creso Pharma announced the acquisition of Halucenex. Halucenex is focused on researching, developing and licensing psychedelic compounds for the pharmaceutical and nutraceutical markets. Creso Pharma sees this as an opportunity to enter the emerging global market for psychedelic medicines, which is estimated to be worth up to US$100 billion. 

Creso Pharma describes the acquisition as “transformational” and a “first-mover advantage” to emerge as the first 100%-owned psychedelic medicines company on the ASX. The acquisition would allow the company to extend its product suite to include cannabis, cannabinoids, and psychedelic alternative medicines.

Halucenex phase II clinical trial

The phase II trial will enroll approximately 18 to 20 subjects with treatment resistant PTSD. As the lead investigators, True North will provide clinical oversight with core activities including patient recruitment, conduct the trial, monitoring, data capture and compilation of results. True North was selected to lead the trials given its favourable geographic location for participants and considerable experience in providing patient care. 

The phase II trial will involve patients receiving two oral doses of psilocybin separated by 7 days. The patients will be closely monitored in the clinic by the study monitors during the hallucinogenic period. The trials will be used to determine the feasibility of future trials of psilocybin. 

The company expects the trials to commence in June 2021, subject to a pending Clinical Trial Authorisation Permit from Health Canada. Halucenex intends to lodge the required documentation by the end of April 2021. 

More reading

• How Mexico could turbocharge ASX cannabis shares
• What’s with the Creso Pharma (ASX:CPH) share price today?
• The Creso (ASX:CPH) share price fizzles despite new distribution deal

Motley Fool contributor Kerry Sun 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 Creso Pharma (ASX:CPH) to commence phase II clinical trials appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38N32lB

Cannindah Resources Ltd (ASX: CAE) shares have exploded by as much as 180% today to hit a 5-year high. Investors are responding positively to the news the mineral resources company has identified large amounts of copper and gold at its main site.

At the time of writing, shares in the company have retreated slightly and are swapping hands for 7.9 cents each – up 154.84%. By contrast, the All Ordinaries Index (ASX: XAO) is currently down 0.61%.

Let’s take a closer look at what the miner reported.

What did Cannindah Resources announce?

The Cannindah Resources share price is on fire after the miner declared “significant” deposits of copper, gold, and silver at its Mt Cannindah project in central Queensland.

Some of the ore found at the site include:

• an 82m thick breccia containing 2.32% copper
• a 118.3m thick breccia containing 1.99% copper
• a 36m thick breccia containing 8.65g of gold per tonne

The company claims there is approximately 90,000 tonnes of copper, 60,000 ounces of gold, and over 2.5 million ounces of silver. At current commodity prices, these finds have estimated values of US$806 million, $1.04 billion, and $64.5 million, respectively.

To understand how monumental the find is for Cannindah Resources, keep in mind the mining company’s market capitalisation is about $24 million.

The site is 100% owned and operated by Cannindah Resources.

Future prospects of gold, silver, and copper

Both gold and silver are currently coming off five-year peaks from August last year. Trading Economics forecasts the prices of both metals to continue declining in the near future. However, the gold price is still 16.1% higher than this time last year, while silver is 111.7% higher over the same period.

Copper’s commodity price is expected to continue growing this year, and possibly into next year. Many consider copper’s price to be a reflection of the health of the economy. Since economic woes are expected to improve as COVID-19 subsides, its price is improving.

As well, copper is an essential metal in producing climate-friendly technology. The rise in demand for green technology is fuelling a boom in the naturally abundant metal.

Cannindah Resources share price snapshot

This time last year, one share in Cannindah Resources would have cost the average investor 0.8 cents. Since that time, the value of the company has grown by around 890%. A very tidy return on investment for those with enough foresight.

More reading

• Top brokers name 3 ASX shares to buy today
• A2 Milk (ASX:A2M) share price lower amid ex CEO drama
• 4DS Memory (ASX:4DS) share price lifts on patent news
• Afterpay (ASX:APT) share price wobbles on CommBank BNPL news
• Why the QEM (ASX:QEM) share price is shooting 16% higher today

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

The post Why the Cannindah Resources (ASX:CAE) share price is leaping 155% today appeared first on The Motley Fool Australia.

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

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Goodman Group (ASX: GMG)

According to a note out of UBS, its analysts have upgraded this property company’s shares to a buy rating with an $18.70 price target. The broker made the move largely on valuation grounds after a recent pullback in the Goodman share price. In addition to this, it notes that demand for its developments is strong and its balance sheet gives it the flexibility to capitalise fully on structural tailwinds. The Goodman share price is trading at $17.27 this afternoon.

Metcash Limited (ASX: MTS)

Analysts at Credit Suisse have retained their outperform rating and $4.08 price target on this wholesale distributor’s shares following its strategy update. According to the note, the broker was pleased with the update. It was also happy to see that the business is performing well in the second half and notes that the board intends to lift its payout ratio from 60% to 70%. And while it has reduced its earnings estimates slightly to account for higher than expected costs, it remains positive on its outlook. The Metcash share price is fetching $3.41 on Wednesday.

Telstra Corporation Ltd (ASX: TLS)

A note out of Ord Minnett reveals that its analysts have upgraded this telco giant’s shares to a buy rating with an improved price target of $4.05. According to the note, the broker believes Telstra’s key post-paid mobile business is well-placed to benefit from the 5G rollout. In addition, Ord Minnett expects Telstra to maintain its dividend at the current level. This will mean 16 cents per share fully franked dividends for the next couple of years at least. The Telstra share price is trading at $3.14 on Wednesday afternoon.

More reading

• ASX 200 down 0.6%: Telstra upgraded, Webjet rated as a buy, Westpac update
• Leading brokers just upgraded these ASX shares to “buy” today
• Leading broker says Metcash (ASX:MTS) share price can climb materially higher
• ASX 200 jumps, Pointsbet reveals acquisition, Metcash drops
• Is the Telstra share price (ASX:TLS) a buy today?

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

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3rZTP0I

A2 Milk Company Ltd (ASX: A2M) shares opened higher today but have since retreated. At the time of writing, the A2 Milk share price is trading 0.12% lower at $8.68. This comes as previous CEO Jane Hrdlicka continues to make headlines over her comments published in Good Weekend on 12 March.

The comments were not well received by the current A2 Milk chair, David Hearn, and follow Hrdlicka’s December 2019 shock exit from the company.

CEO drama

According to today’s The Australian Financial Review (AFR), shots are being fired between the previous A2 Milk CEO and current chair David Hearn.

AFR reports that Hearn believes Hrdlicka’s interview contains “falsehoods” and “mistruths”. He wrote a letter to Hrdlicka on Monday this week demanding she retract some of her comments.

When Hrdlicka ignored the request, Hearn then sent the letter to the Sydney Morning Herald on Tuesday 16 March. No public response has been issued to date.

AFR adds that Ms Hrdlicka, however, released the following statement:

The information in the letter contains false statements, is contextually incorrect and designed to inflict maximum damage on me personally. I wrote to Mr Hearn today seeking clarification and further information on a number of matters and have not yet received a reply.

What did the letter say?

AFR further discusses that, in his letter, Mr Hearn raised three “falsehoods”. He claims that Hrdlicka was dishonest about consultants she appointed, why she left A2 Milk and how the company’s IT team is set up.

He points out that Hrdlicka used roughly 80% of a NZ$33 million budget hiring consultants from Bain & Company, where she had previously worked. According to AFR, Hearn said that Bain & Company was hired by Hrdlicka without her having consulted the executive committee.

Hrdlicka disputed these previously made accusations during the Good Weekend interview. 

Mr Hearn concluded his letter advising that Ms Hrdlicka is now in breach of her signed separation deed. If she continues interacting with the media regarding A2 Milk, the letter implies there will be legal ramifications.

A2 Milk share price snapshot

Over the past year, the A2 Milk share price has fallen by around 43% amid ongoing woes surrounding the company’s daigou channel. Year to date, A2 Milk shares have also fallen by nearly 26%.

Based on the current share price, the company has a market capitalisation of around $6.5 billion with 743.4 million shares outstanding.

More reading

• Leading brokers just upgraded these ASX shares to “buy” today
• Share market on watch over AstraZeneca vaccine fears
• Chinese factory output is up an astonishing 35%
• This fundie refuses to invest in gambling and fossil fuels
• ASX 200 Weekly Wrap: Calm restored to the ASX 200

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post A2 Milk (ASX:A2M) share price lower amid ex CEO drama appeared first on The Motley Fool Australia.

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

The 4DS Memory Ltd (ASX: 4DS) share price is rising against the tide of today’s negative ASX market trend following its recent patent approval.

After flatlining all morning then surging 5.4% around midday, the memory storage provider’s shares are now swapping hands for 19 cents apiece, up 2.7% at the time of writing.

Patent update

After digesting the announcement, investors are gearing up momentum, pushing the 4DS Memory share price higher.

In today’s release, 4DS Memory advised that it has been granted an additional patent to add to its portfolio. Approved by the United States Patent & Trade Mark Office, this brings the company’s total number of granted patents within the US to 30.

The new patent is titled Resistive Memory Device Having An Oxide Barrier Layer (patent number 10,950,788).

The company noted that its patents and applications were all developed in-house and were wholly-owned. This gives 4DS peace of mind away from royalty and licencing commitments.

In addition, 4DS Memory has submitted two further patent applications to the US patent office. These patents protect the company’s intellectual property regarding Interface Switching ReRAM for Storage Class Memory near to DRAM.

What did the head of management say?

Commenting on the approval, 4DS Memory CEO and managing director Dr Guido Arnout said:

The granting of the 30th 4DS patent strengthens an already extensive portfolio of patents for Interface Switching ReRAM.

These patents and additional filed applications are strategically important for the commercialisation of 4DS technology going forward.

4DS Memory share price snapshot

The 4DS Memory share price has gained more than 350% in the past 12 months and over 50% year-to-date. The company’s shares hit a high of 28 cents in late January after investor hype grew over the results of its second non-platform lot.

4DS Memory commands a market capitalisation of around $250.5 million at today’s price, with roughly 1.3 billion shares on issue.

More reading

• The 4DS Memory (ASX:4DS) share price plummets 5% today. Here’s why

Motley Fool contributor Aaron Teboneras owns shares of 4DSMEMORY FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 4DS Memory (ASX:4DS) share price lifts on patent news appeared first on The Motley Fool Australia.

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

The Afterpay Ltd (ASX: APT) share price took a hit in afternoon trade after news broke that Commonwealth Bank of Australia (ASX: CBA) is launching its own buy now, pay later (BNPL) product.

Following the announcement, shares fell as much as 2.5% before staggering back. At the time of writing the Afterpay share price is up 0.4% to $112.20.

Afterpay’s fiercest Australian challenger yet?

This afternoon’s price movement comes after Commonwealth Bank revealed its new CommBank BNPL product, reported by The Australian Financial Review. The offering will enable its 4 million retail banking customers to pay in four instalments anywhere Mastercard is accepted.

The real crunch factor is merchants won’t need to pay any more than the traditional card fees on CBA’s BNPL product – a significantly lower cost than approximate 4% currently charged by competitors such as Afterpay and Zip Co Ltd (ASX: Z1P).

Commonwealth Bank’s offering will be available for purchasing a broad range of items, including household bills and groceries. At present, the service will accommodate payments between $100 to $1,000 across four fortnightly transactions.

Unlike Afterpay, CommBank will conduct credit checks on its customers. As Commonwealth Bank group executive for retail banking services, Angus Sullivan stated, “We are going to treat it like it is credit.” This is a classification that Afterpay and other buy now pay later providers refute.

Klarna and CBA, it’s complicated

Making everything a tad more complicated, the CommBank BNPL is a separate offering to Swedish-based BNPL, Klarna. In July last year, CommBank invested US$300 million into Klarna and built-in an onboarding for it directly into the Aussie banking app.

Despite growing rapidly in the United States, Klarna hasn’t been able to replicate quite the same success in Australia.

Afterpay share price boils down as competition heats up

The Afterpay share price has certainly felt the pinch from a recent push from competitors. Over the last month, Afterpay’s fall from grace has erased more than 25%. If the tech selloff in February wasn’t enough, the news of Paypal (NASDAQ: PYPL) bringing ‘pay in four’ to Aussie shores added further pressure.

However, to keep it all in context, Afterpay’s share price is still up more than 380% in 12 months. As a result, Afterpay’s market capitalisation has grown to one-fifth of Commonwealth Bank’s $153 billion size.

More reading

• How this week’s Fed meeting could impact ASX 200 shares
• Why Lake Resources, PainChek, Z Energy, & Zip shares are rising today
• ASX 200 jumps, Pointsbet reveals acquisition, Metcash drops
• ASX investors still can’t get enough of GameStop (NYSE:GME) shares
• Flight Centre and Zip were some of the most traded ASX shares last week

Mitchell Lawler owns shares of AFTERPAY T FPO and Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Afterpay (ASX:APT) share price wobbles on CommBank BNPL news appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/30SsFgu

QEM Ltd (ASX: QEM) shares are on fire again today after the vanadium and energy company released an investor presentation to the market this morning. At the time of writing, the QEM share price has surged 16.3% higher to 18 cents.

In comparison, the All Ordinaries Index (ASX: XAO) is currently down by 0.76%.

Let’s take a closer look at what might be affecting the QEM share price today.

QEM investor presentation

The company followed its market update of two days ago, which saw the QEM share price rocket by 119% in one day, with an investor presentation today.

In the presentation, the company provided investors with information regarding three key revenue sources. They are:

1. The Julia Creek vanadium and oil shale project
2. The hydrogen production strategy
3. Government funding

Julia Creek project

Located in the North West Minerals Province (NWMP) of Central Queensland, the Julia Creek site is both a vanadium and oil shale mine.

According to The Royal Society of Chemistry, vanadium is a silvery metal mainly used in steel production. It reinforces steel for strength, weather resistance, and increased fuel efficiency. The twenty-third element is also used in ceramic and dye production, and in renewable energy storage.

Elements essential to renewable energy technology, such as lithium and rhodium, have seen their prices boom in recent weeks.

The Australian Government considers vanadium to be a ‘critical mineral’. According to Geoscience Australia, a critical mineral is “…vital for the economic well-being of the world’s major and emerging economies, yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors.”

The Julia Creek site is also home to a large oil shale reserve. Oil shale is sedimentary rock which contains organic matter. It has not yet undergone the process of converting into crude oil in underground wells. The company sees the emerging oil shale industry as an untapped market within Australia.

Hydrogen production strategy

Using solar power, QEM is exploring opportunities to produce ‘green’ hydrogen. The company separates hydrogen from water using a process known as electrolysis.

The hydrogen will be used to power the Julia Creek site, and any surplus electricity would be sold to the Queensland grid. As well, QEM will use the universe’s most abundant resource to hydrogenate raw oil, thus making it more sustainable.

Long term, the company wants to turn the Julia Creek site into a hydrogen hub for the entire NWMP.

Government funding

As a producer of critical materials, QEM advised it is targeting a range of government loans and grants through both state and federal funding agencies. One such agency is the Northern Australia Infrastructure Facility (NAIF).

NAIF is a commonwealth agency designated with boosting economic development in northern Australia through strategic private sector investment. In the last financial year, NAIF made $1.4 billion worth of investments.

Another government agency QEM believes it may be able to access is the Australian Renewable Energy Agency (ARENA).

ARENA supports research and development in renewable energy technology through strategic investments and sharing research with the private sector. Hydrogen production, storage, and use are all within ARENA’s scope.

At the state level, the Queensland Government has several initiatives to boost mineral extraction in the state. The most relevant ones include the NWMP Strategic Blueprint worth $39 million, the Hydrogen Industry Strategy worth $19 million, and the $100 million Resources Community Infrastructure Fund.

QEM share price snapshot

One year ago, the QEM share price was sitting at 7 cents. Since then, it has gained more than 150%. Almost all of these gains occurred over the last couple of days. Only last Friday, shares in the company were trading at 8.2 cents.

However, the QEM share price is still trading half a cent lower than its initial public offering (IPO) price of 18.5 cents.

QEM has a market capitalisation of around $15.5 million.

More reading

• The QEM (ASX:QEM) share price has rocketed 119% today. Here’s why

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

The post Why the QEM (ASX:QEM) share price is shooting 16% higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/30OX7Yy

EarlyPay Ltd (ASX: EPY) shares are on the rise today after the company provided a business growth and facilities update. At the time of writing, the EarlyPay share price is trading 1.15% higher at 44 cents after earlier posting gains of 5%.

The company provides tailored financing solutions to both small and large businesses across Australia. Let’s take a look at what it reported.

What did EarlyPay report?

EarlyPay shares are moving higher today after the company reported the increase in its new business volumes were continuing during the first two months of the new financial quarter (Q3 FY21). EarlyPay had earlier reported the increase in new business volumes in its half-year financial report (H1 FY21) for the year ending 31 December. That release saw the share price surge 10% on the day.

The company reported that the third quarter tends to be a quieter business period due to holiday disruptions, but this was not the case this year. It reported being on track to increase the number of its Invoice Financing clients by 10% during Q3.

Additionally, Total Transaction Volume increased 10% year on year, which was before COVID-19 impacted the market.

The company credits its online strategy for the growth, reporting more than 90% of all new invoice financing clients used its online platform during Q3 so far, compared to 56% in Q2.

EarlyPay also provided an update on the facility it holds with Greensill, which is now under administration. It said this debt represents “less than 10% of Earlypay’s total loan portfolio and will be transitioned to an existing bank warehouse facility which has ample headroom”.

The company reaffirmed its full 2021 financial year guidance of earnings before interest, taxes, depreciation and amortisation (EBITDA) of $21 million and net profit after tax and amortisation (NPATA) of $8.5 million. It intends to pay a full-year dividend in the range of 1.3 cents per share, fully franked.

EarlyPay share price snapshot

Over the past full year, EarlyPay shares are down by 12%. That compares to a gain of 32% on the All Ordinaries Index (ASX: XAO).

Year to date, the EarlyPay share price is up 16%.

More reading

• Why the Earlypay (ASX:EPY) share price is going nuts

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.

The post Here’s why the EarlyPay (ASX:EPY) share price is rising today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qU3Pao