The Ioneer Ltd (ASX: INR) share price tops the All Ordinaries Index (ASX: XAO) leader’s board for biggest gains over the past month.

Ioneer’s share price is up 90% since 28 September and up 58% so far in October. By comparison the All Ords is up 6% so far this month. Shares enjoyed another 5.6% gain by end of the day today.

The past month’s tremendous performance will come as welcome news to shareholders, who saw the share price drop 58% from 21 February through to 19 March during the COVID-19 panic selling.

The share price has rebounded 138% since that low, which sees shares trading at 19 cents, right where the year began.

What does Ioneer do?

Ioneer is a lithium project developer. Its low-cost Rhyolite Ridge lithium-boron project is located in the US state of Nevada. The company forecasts the project will be ‘construction ready’ in the second quarter of 2021.

Why has the Ioneer share price gained 90% the past month?

Ioneer’s share price has been on a tear this past month with no fresh news from the company hitting the market.

One of its recent positive announcements on 31 August, stating that its plan of operation for the Rhyolite Ridge project were given the green light by the US Bureau of Land Management, saw a brief 10% share price spike before shares retraced and traded flat from the 31 August price through to 28 September.

So why has the share price rocketed 90% since then?

The most likely catalyst is US President Donald Trump.

On 30 September Trump signed an executive order which declared a national emergency in the US mining industry. Speaking at a campaign rally in Minnesota, Trump said:

Earlier today, I took another historic step for your state when I signed an executive order providing billions of dollars to jump-start production of critical and other minerals which will create countless jobs that are so important for our country.

Trump’s surprise move is designed to boost US production for critical minerals needed in defence and the burgeoning electric vehicle markets and reduce US reliance on China.

Judging by Ioneer’s skyrocketing share price, the company could be well placed to provide lithium to the US market to help power the next generation of vehicles and home battery storage.

More reading

• Could these US-based ASX lithium shares land a deal with Tesla (NASDAQ:TSLA)? 

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

eBay‘s (NASDAQ: EBAY) stock has enjoyed a strong rally so far this year. Investors were impressed with the online marketplace’s surging growth trends during the initial phases of the coronavirus pandemic. They were just as excited about the prospect for improving profitability in late 2020 and beyond.

That optimism has set a high bar for eBay’s upcoming earnings report, which is expected to show solid organic growth heading into the key holiday shopping season. Here are a few metrics to watch in the announcement set for Oct. 28.

Sales trends

The biggest questions surround the recent growth surge and to what extent it will hold up through the end of the year. eBay reported several encouraging numbers on this topic last quarter. Along with a basic spike in customer traffic as consumers shifted spending to online sources, the marketplace attracted many more sellers to its platform and had rising conversion rates along with sales growth across most of its categories.

Investors will be looking to see if eBay stretched those successes into July, August, and September, a period characterized by resumed retailing activities across most of the world. Wins here would show up in elevated sales volumes, which management predicted would grow by high-teen percentages in Q2. Also keep an eye on the buyer pool and whether it keeps rising at faster than a 2% clip.

Fees and cash

eBay entered the pandemic with far higher profit margins than its peer e-commerce giants, thanks to its asset-light approach to connecting buyers with sellers. That gap only widened in Q2, with operating margin jumping to 28.7% of sales versus 23% a year ago. The company is less exposed to the type of inventory write-offs that pinched profits at many physical retailers, and its marketplace also faces less risk around manufacturing and supply chains.

These factors all support robust returns, but transaction fees are the key metrics to watch when it comes to profitability. eBay kept the rate it charges buyers to roughly 9% last quarter as short-term promotions offset gains in other parts of the business. Even a tiny uptick in that metric would amplify earnings growth in the third quarter.

Looking out to the holidays

eBay lifted its 2020 outlook back in July, and investors have a good shot at seeing a similar boost on Wednesday assuming growth trends didn’t disappoint. As it stands today, the company is predicting sales between $10.6 billion and $10.8 billion, equating to organic growth between 12% and 14%. For perspective, eBay was forecasting a roughly flat result on that metric before the pandemic struck.

It is smart to assume that growth will trend back down toward that pre-pandemic rate as the threat of the virus declines in the next year. But it’s also clear that a large portion of the spending that consumers moved to online sources is here to stay. eBay’s core challenge now is to convince its newest buyers and sellers to continue using the platform following a record growth year.

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

More reading

• Global Health (ASX:GLH) rockets 20% higher on business update
• ASX 200 was mixed today, ends down 0.2%
• Why the Dotz Nano (ASX:DTZ) share price nosedived 9% today
• 3 of the best blue chip ASX shares to buy in November
• How did ASX buy now, pay later shares perform in the latest quarter? 

Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends eBay and recommends the following options: short January 2021 $37 calls on eBay and long January 2021 $18 calls on eBay. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Global Health Limited (ASX: GLH) share price has rocketed higher following the release of a trading update for FY21.

On the opening bell, shares in the med tech company lifted 38% to 47 cents from the news. However, its shares have slightly come back to earth, and are now trading up 20.59% to 41 cents.

Let’s take a look and see how Global Health performed for the quarter.

Q1 performance update

For the period ending 30 September, Global Health reported a strong result. The uplift in its key financial metrics continues to track a positive trend over the past 2 years.

Monthly recurring revenue from its software-as-a-service (SaaS) platforms achieved 13% growth on the previous corresponding period (pcp).

Underlying customer revenue increased by 21% to $1.46 million, driven by demand in healthcare providers switching to digital technology.

Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped more than 315% to roughly $262,000. Net profit after tax (NPAT) also rose, up 188% to $225,000.

COVID-19 impact

Global Health advised that management and staff are continuing to operate from home using the Microsoft TEAMS collaboration platform. Productivity and support tickets have been mainlining expected levels, without disruption.

New sales and project revenue however, has been impacted, particularly in Victoria. Sales commitments have been deferred, while community health opportunities remain under consideration, including those that require interstate travel.

Contracted Victorian projects have slipped past 6 months, with the implementation of MasterCare EMR to go live commencing December. The three locations of the new launch will be at the Bellarine Community Health, Ballarat Community Health and Peninsula Health.

Pipeline opportunities

The fallout from COVID-19 has led to a focus on mental health services. Global Health has seen a shift in digital technology offerings from healthcare providers to improve service delivery.

The company’s flagship MasterCare EMR platform is currently involved with proposals worth over $4 million. The outcome of those tenders is to be decided in the coming months, with Global Health to provide an update.

Outlook

The company noted that post-COVID-19, the healthcare landscape will be substantial and long-term, particularly mental health.

Global Health recognises the need for digital platforms to address mental health, drug and alcohol, and other chronic disease issues. New expansion opportunities such as the company’s Lifecard Personal Health platform are anticipated to meet this need.

In addition, the company believes that healthcare services in future will be provided without the need for face to face consultations. This in-turn will benefit remote and rural communities.

Global Health managing director, Mathew Cherian spoke about the rising challenges. He said:

Many areas of the Australian Life have been forever changed by COVID-19 pandemic. Businesses have to be more aware of the physical and mental health of their workforce. Sporting organisations also have to rethink their approach to the healthy participation of their members, coaching staff and volunteers to ensure that sporting activities can go ahead in a responsible manner.

Special attention of the needs of the elderly members of our community also needs to be addressed. Global Health’s digital technology platforms can make a significant contribution to these issues as Australia works towards effectively managing the environment we face.

More reading

• Global Health (ASX:GLH) share price catches a rocket, up 74%

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX:XJO) was mixed today, it finished lower by 0.18% to 6,156 points.

Here are some of the highlights from the ASX:

Westpac Banking Corp (ASX: WBC)

The major ASX 200 bank reported that its cash and statutory earnings are going to be reduced by $1.22 billion.

The notable items include new items of $816 million (after tax), combined with a previously announced AUSTRAC provision of $404 million.

In total, these notable items will reduce the group’s CET1 capital ratio of 24 basis points.

Westpac announced the write-down of goodwill and intangibles associated with Westpac’s life insurance services business and the auto finance business as well as the writedown of capitalised software. These amounted to $568 million after tax.

There is going to be an increase in the provision and costs associated with the AUSTRAC proceedings of $415 million after tax. This includes the previously announced $404 million in provisions associated with the court approval civil penalty and AUSTRAC’s legal costs.

Westpac said that there is an increase in provisions for customer refunds, repayments, associated costs and litigation provisions of $182 million after tax.

The final section of notable items relates to asset sales and revaluations. The net impact of this will reduce cash earnings by $55 million after tax. That includes the revaluation of life insurance liabilities and a loss on the agreed sale of its vendor finance business. Those items totalling $267 million after tax will be partly offset by an after-tax benefit of $212 million from the revaluation of its Zip Co Ltd (ASX: Z1P) shares.

The Westpac share price finished lower by 0.4%. 

Coca-Cola Amatil Ltd (ASX: CCL) fizzes higher

The Coca Cola Amatil share price went 16% higher today after announcing a takeover offer by Coca Cola European Partners (CCEP).

CCEP has made a non-binding, indicative proposal of $12.75 cash per share, less any dividends paid, for shares held by independent shareholders.

CCEP will also acquire shares of Coca Cola Amatil owned by The Coca-Cola Company, on less favourable terms compared to what independent shareholders will get.

Assuming the proposal passes a number of conditions, Coca Cola Amatil’s independent directors intend to recommend the takeover.

Adairs Ltd (ASX: ADH)

The Adairs share price dropped 6% today in response to a trading update.

Despite 43 stores being closed in Melbourne, its first 17 weeks of FY21 have been strong.

Total Adairs sales grew by 22% compared to the prior corresponding period. Open store like for like sales went up 17%. Adairs online sales went up 134%. Mocka sales went up 48%. Online sales represented 41% of total sales, up from 17% last year, comprising 32% from Adairs online and 9% from Mocka.

Adairs’ gross margins have been well above last year and remain an area of focus for management. The underlying trading gross margin for Adairs for the first 17 weeks was 600 basis points higher. However, management think the margin will moderate over the rest of FY21.

Nick Scali Limited (ASX: NCK)

Nick Scali also gave an update today. 

For the first quarter of FY21, written sales orders continue to be materially up on last year, despite the closure of stores since August in Melbourne and for four weeks in Auckland.

Total sales orders for the first three months of FY21 are up 45% on the previous year. This trend has continued through October. Excluding store closures in Melbourne and Auckland, comparable store sale orders grew by 59% in the first quarter.

Nick Scali online orders have increased by 47% in the first quarter. Management think the earnings before interest and tax (EBIT) contribution from online will be higher than previously anticipated.

The company had previously provided guidance that net profit for the first half would be 50% to 60% higher than last year. Even allowing for delays in the supply chain caused by the current reduction of inbound shipping and the reduced availability of containers, the company is now expecting first half profit will be 70% to 80% higher. Any delays in delivering orders will flow into the second half as revenue.

The Nick Scali share price dropped 6% in response to this news.

More reading

• How did ASX buy now, pay later shares perform in the latest quarter? 
• Why is the Nick Scali (ASX:NCK) share price falling today?
• Why Adore Beauty, Adairs, Marley Spoon, & Resolute shares are dropping lower
• Coca-Cola Amatil (ASX:CCL) share price jumps 16% on takeover bid
• ASX 200 up 0.3%: Coca-Cola Amatil rockets on takeover approach, Westpac’s $1.2bn earnings hit

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 recommended ADAIRS FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Dotz Nano Ltd (ASX: DTZ) share price fell as much as 19.23% today, reaching of low of 21 cents before recovering to 24 cents at today’s close. This came 1 week after the company announced a placement to institutional and sophisticated investors.

What were the details of the placement?

Dotz Nano raised $7.1 million via the placement. The company sold 28.27 million shares at an issue price of 25 cents per share. The placement was announced on 19 October, and at the time was a discount of 13.8% to the last closing share price. The shares issued under the placement will begin trading on Wednesday 28 October 2020.

According to the company, the proceeds of the placement will be used to fulfil its 4 existing PPE authentication contracts in addition to increasing production capacity, establishing new distribution networks, engaging in sales and marketing and establishing proof of concepts for new products including commercialisation of Dotz’s surface sanitation and on site virus detection.

A closer look at Dotz Nano

Dotz Nano is a technology company that specialises in carbon-based materials used for tracing, anti-counterfeiting and product liability solutions. Dotz Nano has been listed on the ASX since 2016.

Earlier this month, Dotz Nano announced that it had secured an agreement for the authentication of medical gowns worth US$255,000. The agreement was with Hong Kong based Universal Exports Group and followed a $1 million agreement with the same customer to authenticate medical face masks. 

Also in October, Dotz Nano gave a presentation at the Market Eye TechOpps virtual conference where it informed investors that $2.2 trillion of products are counterfeited, creating a large opportunity for Dotz Nano’s authentication technology. 

About the Dotz Nano share price

The Dotz Nano share price is up 627% from its 52-week low of 3.3 cents and has risen more than 215% since the beginning of the year. The Dotz Nano share price is up 458% since this time last year.

More reading

• 3 of the best blue chip ASX shares to buy in November
• How did ASX buy now, pay later shares perform in the latest quarter? 
• Is it bad news that the Temple & Webster (ASX:TPW) share price lost 26% over a week?
• Will Apple miss on earnings this week?
• Why the Danakali (ASX:DNK) share price is down 7% today

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are a large number of blue chips for investors to choose from on the Australian share market.

But three blue chips which I believe are among the highest quality options are listed below. Here’s why I think they would be top long term investments:

CSL Limited (ASX: CSL)

I think this biotherapeutics company is one of the best blue chip shares you can buy. This is due to my belief that it is well-positioned to continue growing its earnings at a solid rate long into the future once the pandemic passes. I expect this to be driven by its world class portfolio of therapies and vaccines, its growing plasma collection network, and its research and development (R&D) pipeline. In respect to the latter, in FY 2020 the company invested ~US$900 million into its R&D activities. It expects to invest somewhere in the region of US$1 billion more this year. Following its recent R&D update, I’m confident this money is being invested extremely well and will generate a compelling return for shareholders over the 2020s.

Goodman Group (ASX: GMG)

Another blue chip ASX share I would buy is Goodman Group. I think the integrated commercial and industrial property group is the highest quality option in the property sector. This is due to its outstanding portfolio of assets, which has exposure to structural tailwinds such as ecommerce. This is achieved through relationships with companies such as Amazon, DHL, Showpo, Walmart, and Zalando. All in all, I believe these assets will be in demand for a long time and are likely to drive strong rental income growth over the next decade.

Telstra Corporation Ltd (ASX: TLS)

Finally, I think this telco giant would be a great blue chip to buy right now. Especially after a recent poor run led to its shares dropping to a multi-year low this month. Times were hard for Telstra during the 2010s, but I’m confident the 2020s will be materially better. This is thanks to the return of rational competition in the telco industry, its cost-cutting plans, the easing NBN headwinds, and its leadership position in 5G. The latter should be a big boost to its mobile revenues in the coming years and could underpin a return to growth in the near future.

More reading

• 2 ASX shares I would buy for growth and dividends
• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• Buy these blue chip ASX shares for generous dividends in 2021
• Brokers name 3 ASX shares to buy right now
• Telstra (ASX:TLS) share price hits a multi-year low: Is it a bargain buy?

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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX buy now, pay later shares continued to storm higher in the quarter ended 30 September, reporting record results on expanding markets. One of the few sectors to flourish during the COVID-19 crisis, the buy now, pay later (BNPL) industry now has continued to gain ground as consumers move online to shop. BNPL accounted for 8% of all ecommerce payments in 2019, according to Mergermarket, and is predicted to double in the next 3 years. 

Regulatory concerns that plagued the industry late last year seem to have been put on the backburner as authorities focus on combating the pandemic. The Australian Transaction Reports and Analysis Centre (Austrac) recently gave Afterpay Ltd (ASX: APT) a clean bill of health, saying it would not take legal action over historical breaches of anti-money laundering laws. The threat of a hefty fine had loomed, but Austrac ultimately found Afterpay was a “low risk” business, deciding no further action would be taken.

With that in mind, let’s take a look at how ASX BNPL shares performed in the last quarter. 

Afterpay Ltd (ASX: APT) 

The Afterpay share price continued its steady upwards trajectory in the most recent quarter, with the BNPL giant’s market capitalisation recently topping $27 billion. Now firmly ensconced in the S&P/ASX 20 (ASX: XTL), Afterpay has seen customer numbers boom this year. The pandemic and associated increase in online shopping has worked in Afterpay’s favour, with customer numbers climbing towards the 10 million mark. 

The BNPL provider transacted a whopping $11.1 billion in underlying sales in FY20, 112% up on FY19. Afterpay’s annualised run rate is over $15 billion, with 90% of underlying sales from repeat customers. The company now has more than 55,000 active merchants across Australia, New Zealand, the United States, and the UK. 

Afterpay announced plans to expand into Europe in August. The EU has been identified as the next logical step for international expansion given its large millennial population, vast fashion and beauty retail markets, and significant debit card usage. With an addressable e-commerce market of over $494 billion, the EU represents a compelling value proposition for Afterpay. 

In September Afterpay announced a change of CFO, appointing Rebecca Lowde to the position. Lowde was previously Chief Executive of Salmat and CFO of Bravura Solutions Ltd (ASX: BVS). Afterpay says Lowde’s skills and experience will assist the company as it accelerates its growth to scale globally. Afterpay is looking to expedite its expansion into new markets in FY21 to leverage early mover advantages. New verticals are also expected to add to sales momentum.

Zip Co Ltd (ASX: Z1P)

The Zip Co share price also gained ground in the last quarter as investors favoured the BNPL sector. Zip Co investors were rewarded with record transaction volumes and revenue for the quarter. Quarterly transaction volumes were $943.1 million, up 96% year on year (YoY). Revenue was $71.7 million, up 88% YoY. Zip Co ended the quarter with 4.5 million customers and 34,400 merchants. 

The BNPL provider entered the S&P/ASX 200 Index (ASX: XJO) in the September quarter rebalance with a market capitalisation of around $3.6 billion. Zip Co also completed its acquisition of US player QuadPay during the quarter, which delivered US$70 million in monthly transaction volumes and over 2 million customers. Further growth is expected as US consumers increasingly turn to BNPL solutions. 

Zip Co is now well on its way to becoming a global BNPL provider. It currently operates across Australia, New Zealand, the United States, UK, and South Africa. Annualised total transaction volumes are north of $3.8 billion and annualised revenue over $280 million. The US market demonstrated significant growth in revenue and transaction volumes in the September quarter, up 50% and 42% quarter on quarter (QoQ), respectively. 

The company says the current quarter has begun strongly in all markets. The company has also teased a number of upcoming announcements on the product and merchant pipeline. Seasonally, the quarter ending 31 December is the strongest as it includes key spending dates such as Black Friday, Cyber Monday, Christmas Day, and Boxing Day. 

Sezzle Inc (ASX: SZL)

The Sezzle share price almost doubled over the last quarter, as the company reported record results. Its third quarter underlying merchant sales increased 231.5% YoY and 21% QoQ to US$228 million. Active customer numbers grew to 1.79 million, an increase of 178.1% YoY and 21.5% QoQ. Merchant numbers also grew, climbing 178.3% YoY and 29.7% QoQ to 20,890. 

“Our product offering continues to prove its resiliency as well as its necessity during these difficult times,” said CEO Charlie Youakim. “Our strong performance in 3Q is reflective of an improving Sezzle consumer profile along with the continued acceleration of ecommerce in the marketplace.” 

Repeat usage grew to 89% in the quarter ended 30 September. This metric, which is a key driver in lowering loss rates and improving net transaction margin, has been rising for 21 months straight. 

The company has seen rapid growth and attained material scale since its 2019 IPO. An $86.3 million capital raising was conducted in July to accelerate growth and strengthen Sezzle’s balance sheet. Proceeds will fund additional sales and marketing activities, as well as product enhancement and expansion costs. Investments will also be made to support market development in Canada and testing in other markets. 

More reading

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• 3 important rules to help you build wealth
• The best time to invest may feel uncomfortable

Kate O’Brien 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 Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Temple & Webster Group Ltd (ASX: TPW) has seen its shares fall by 6.7% today. This means the Temple & Webster share price has lost 26.3% since the market opened on Tuesday last week. The slide began with the company AGM. While there has undoubtedly been some profit taking, many investors appear to be unnerved by insider selling of the two founders. 

Nonetheless, the quarterly update was beyond expectations. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the September quarter was greater than all of FY20. Year to date revenues were also up, this time by 138% versus the previous corresponding period.

Moreover, retail NAB online sales index suggests the homewares and appliances category grew around 57% during the months of April to July. Meanwhile, Temple & Webster grew by 150% at the same time.

Is the Temple & Webster share price fall a problem?

CEO Mark Coulter recently spoke out about the company, its growth, and the recent share sales. The company’s stellar growth during FY20 was undoubtedly due to the much-talked-about shift to online shopping during the COVID-19 pandemic. However, Mr Coulter believes there is an air of inevitability about it. He believes it is only a matter of time before the company is larger than both Ikea and Harvey Norman Holdings Limited (ASX: HVN) in Australia. 

In an interview with Ticky Fullerton, in The Australian, Mr Coulter said:

In the very early days it did accelerate fairly quickly. Then like all businesses it reached a hard bit, you get all the scaling problems and then we jumped again. We bought a couple of our competitors, we did a jump, we listed, then we went back to the drawing board and thought about what the new Temple & Webster is.

It’s really the last few years that everything has worked together. It feels like the site is good, the range is good, the team is good, our customers services is good, our delivery experience is good and that’s made the Temple & Webster you see today.

Foolish takeaway

There are a number of takeaways that may impact the Temple & Webster share price. First, despite the founders selling off shares, the company is currently performing better than it has at any time in its history. Second, the times appear to suit the company. It has benefited from the pandemic shift to online shopping. Third, and finally, the company CEO clearly has a high level of ambition for the company.

According to its AGM presentation, Temple & Webster remains dedicated to regularly adjusting its product range, and deepening its digital advantage. 

More reading

• How did ASX retail shares perform in the latest quarter?
• Is Temple & Webster Group Ltd (ASX:TPW) still a buy?
• The best time to invest may feel uncomfortable
• Got $1,000? You should buy one of these 8 ASX shares
• The Adore Beauty (ASX:ABY) share price surged 10% higher today

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

Apple (NASDAQ: AAPL) is set to report fiscal fourth-quarter earnings results on Thursday, but investors should temper their expectations. The company will face tough comparisons in several categories, most notably in the core iPhone business. The COVID-19 crisis impacted Apple’s supply chain earlier this year and led to delays in final testing, which subsequently pushed back the production schedule by a few weeks.

The iPhone 12 and 12 Pro launched on Friday, slightly later than usual, and after the fiscal fourth quarter had already closed at the end of September. In contrast, last year’s iPhone 11 lineup launched in late September.

A “lack of new products”

Morgan Stanley analyst Katy Huberty released a note last week warning that analysts’ expectations for the iPhone remain too high. The consensus estimate currently calls for 40.4 million iPhone units, which Huberty suggests is too optimistic. The analyst is modeling for iPhone unit volumes of just 33 million and iPhone revenue of $22.9 billion, translating into an average selling price of approximately $694.

“While results ahead of a product cycle don’t tend to influence investor sentiment, we see the potential for an expectations miss on the back of aggressive consensus iPhone expectations that don’t fully account for the lack of new products in the quarter,” Huberty wrote in a research note to investors. Instead of focusing on the iPhone, investors should look at other parts of the business, as well as guidance for the holiday shopping season.

While the Cupertino tech giant did have a virtual product event in September to unveil the Apple Watch Series 6 and iPad Air 4, the latter device didn’t ship until October. The smartwatch did launch about a week before the fiscal year ended, so some Apple Watch sales will be included in the upcoming earnings report.

The good news is that Huberty believes that demand for the newest iPhone is the strongest it’s been in years, pointing to lead times and shipping estimates. Separately, TF International Securities analyst Ming-Chi Kuo recently noted that pre-order volumes are up and that the product mix appears to be shifting toward higher-end Pro models, which bodes well for overall profitability.

Huberty is modeling for services revenue of $14.5 billion, which would represent both a new quarterly record and 10% sequential growth. The analyst is assigning a much higher valuation multiple to the booming services segment compared to hardware products, due to the highly profitable and recurring nature of services revenue. Apple is looking to hit 600 million paid subscriptions by year-end.

While the timing of the iPhone 12 launch will affect reported results, the more important thing will be how the new flagship smartphone sells in the coming quarters. On that front, Huberty is very bullish and tells investors to buy the stock if it dips after earnings.

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

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Evan Niu, CFA owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia has recommended Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Will Apple miss on earnings this week? appeared first on Motley Fool Australia.

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

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The Danakali Ltd (ASX: DNK) share price is sliding today, down 7.5% in late afternoon trading.

The potash miner, formerly known as South Boulder Mines, finds itself under pressure following this morning’s release of its investment update.

It’s been a challenging year for shareholders, who saw Danakali’s share price slump 50% during the COVID-19 market rout in February and March. Since the 23 March lows, shares have rebounded 24%, but remain down 36% year-to-date.

In comparison, the All Ordinaries Index (ASX: XAO) is down 6% so far in 2020.

What does Danakali do?

Danakali is a resource company focused on potash. Its aim is to develop its Colluli SOP Project in Eritrea, East Africa into a leading potash project providing potassium-bearing minerals for African and global agricultural production. Located 75km from the Red Sea, it’s one of the most accessible potash deposits globally.

The project is 100% owned by the Colluli Ming Share Company (CMSC), a 50:50 joint venture between the Eritrean National Mining Corporation (ENAMCO) and Danakali. Danakali expects that Colluli will provide a positive impact on infrastructure, job creation and sustainability in Eritrea.

Why did the Danakali share price slide today?

This morning’s ASX announcement provided investors with an update on the US$28.5 million (AU$40 million) Tranche 2 equity funding from the Africa Finance Corporation (AFC). Danakali stated it had been working in good faith with AFC. But the company now believes it’s unlikely it will be able to satisfy all the conditions precedent before the 21 November 2020 deadline.

It also reported that, despite not being able to complete Tranche 2 in accordance with the terms of the subscription agreement, AFC – Danakali’s largest shareholder – remains firmly committed to supporting the Colluli Project.

Commenting on the repayment snag, AFC’s CEO Samaila Zubairu said:

AFC’s mandate is to develop Africa and ensure that more of the value of the continent’s resources benefit the continent’s people through the creation of jobs and opportunities along with improving living standards.

AFC are fully committed to seeing the Colluli developed as quickly and safely as possible and look forward to working with key stakeholders, ENAMCO, Afreximbank and Danakali on this important objective and ensure the project is fully funded as soon as possible so production commences in 2022.

2022 is a little way off yet. But if Danakali can get the Colluli producing as planned, its share price could lift off from today’s 37 cents per share.

More reading

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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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