At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week strongly. At the time of writing, the benchmark index is up 0.65% to 6,708.2 points.

Here’s what has been happening on the market today:

Bank shares higher.

The big four banks are all on form today and helping to drive the ASX 200 index higher. While all the big four are recording solid gains, the best performer in the group has been the Commonwealth Bank of Australia (ASX: CBA) share price. At the time of writing, the shares of Australia’s largest bank are up a decent 1.3%.

Tech shares on the charge.

It has been a positive start to the week for the Australian tech sector. Thanks to gains by tech stars such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX), the S&P ASX All Technology Index (ASX: XTX) is up 0.8% at lunch. This follows a positive night of trade on the technology-focused Nasdaq index. Overnight it recorded a 0.75% gain after traders cheered the US COVID-19 stimulus bill signing.

Mining shares push higher.

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares are on the rise today despite a pullback in the iron ore price. According to CommSec, the spot iron ore price eased by US$2.25 or 1.4% to US$164.25 a tonne. This was driven by a downtrend in steel prices over the weekend and cold-weather concerns in China. 

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with a 4% gain. Investors may be optimistic that New South Wales has its COVID outbreak under control now. The worst performer has been the GUD Holdings Limited (ASX: GUD) share price with a 2% decline. This is despite there being no news out of the products company.Best and worst ASX 200 performers.

More reading

• 2 star stocks for your ASX retirement portfolio
• These are the 10 most shorted shares on the ASX
• 5 things to watch on the ASX 200 on Tuesday
• Why these ASX shares have smashed the market in 2020
• 2 buy-rated ASX dividend shares for income investors to snap up

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

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Initial public offerings (IPOs) were all the rage in the second half of this year.

But when every dog and his master are getting on the bandwagon, you’re bound to see a wide variety in substance.

“There was very high variability in the quality of new listings this year,” Prime Value portfolio manager Richard Ivers told The Motley Fool.

Some companies were clearly taking advantage of “a short-term boost” to the bottom line from the COVID-19 pandemic, he said.

“With the market placing high valuation multiples on some of these sectors, they got the double benefit of high valuation multiples on cyclically high profits.

“Others were high quality businesses with a solid long term outlook.”

So what was the best out of a motley crew?

The best of the good ones

Pengana Capital portfolio manager Chris Tan told The Motley Fool that Liberty Financial Group Pty Ltd (ASX: LFG) was the best new ASX listing in 2020.

The loan provider’s long track record as a private company gives Tan much confidence that it knows what it’s doing.

“LFG is a well-established company with a consistent history of profitability, unlike a lot of the latest IPOs. It was established in 1997 and has become a top 10 home lender in Australia,” he said.

“Surviving the GFC of 2008 is testament to its credentials in credit risk management. Its proprietary, tech-driven risk-based pricing model allows it to profitably write new business that larger players (eg the big 4 commercial banks) are often not able to.”

The Liberty IPO share price was not excessive, making it even more attractive.

“The IPO pricing was favourable at a P/E [ratio] of 11 times financial year 2021 earnings and a forecast 4% dividend yield.”

Liberty shares sold for $6 during the IPO and have bumped up to $7.90 in just two weeks since listing.

Aside from its already-strong residential loan business, Liberty still has plenty of untapped potential in other areas.

“It has growth opportunities in large addressable markets such as commercial, personal and motor loans,” said Tan.

To round out the case for Liberty shares, insider shareholdings have remained very high after the listing.

“The size of the IPO was limited with the founder group maintaining almost 80% of the shares on listing,” Tan said. 

“The main founder and shareholder [and executive director], Sherman Ma, is keeping his entire shareholding. As the most knowledgeable of insiders, when founders maintain large stakes a new investor can justifiably derive more confidence in a company’s future prospects than with a normal IPO.”

More reading

• Liberty Financial (ASX:LFG) share price jumps 12% on IPO debut

Motley Fool contributor Tony Yoo 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week strongly. At the time of writing, the benchmark index is up 0.8% to 6,717.1 points.

Four shares that are climbing more than most today are listed below. Here’s why they are charging higher:

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price is up 4% to $11.38. Investors have been buying the infant formula company’s shares after they were sold off earlier this month following a guidance downgrade. It appears as though they believe the selling was overdone and the headwinds it is facing in the daigou channel are only temporary.

Adacel Technologies Limited (ASX: ADA)

The Adacel share price has jumped 8% to 96 cents. This morning the air traffic management systems provider announced its intention to conduct an on-market share buy-back during the period from 11 January 2021 to 10 January 2022. According to the release, the company will acquire up to approximately 7.6 million or up to 10% of its shares on issue.

Dusk Group Ltd (ASX: DSK)

The Dusk share price is up a sizeable 12% to $2.02. Investors have been buying the home fragrance product retailer’s shares after it provided a positive trading update. Management expects sales for the first half of FY 2021 to be in the range of $90 million to $90.5 million. That compares to $58.7 million in the first half of FY 2020. Earnings before interest and tax (EBIT) is estimated to be between $26 million and $27 million. This is up materially on FY 2020’s first half EBIT of $9.7 million.

Nuheara Ltd (ASX: NUH)

The Nuheara share price has rocketed 13.5% higher to 5 cents. The catalyst for this was a big announcement by the smart and affordable hearing solutions provider. Nuheara has signed an agreement to manufacture HP-branded products for American multinational information technology company HP Inc (NYSE: HPQ). According to the release, the hardware product purchase agreement has a contracted initial term of three years with automatic renewals for successive one-year periods.

More reading

• Why the Dusk Group (ASX:DSK) share price is rocketing 14% higher
• Why the Nuheara (ASX:NUH) share price is rocketing 23% higher today
• Top brokers name 3 ASX shares to buy next week
• These were the best performers on the ASX 200 last week
• 2 ASX growth shares to buy when the market reopens

Motley Fool contributor James Mickleboro 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.

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The S&P/ASX 200 Index (ASX: XJO) has returned from the Christmas break in style and is storming higher. In late morning trade the benchmark index is up 0.65% to 6,708.7 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

AVITA Medical Inc (ASX: AVH)

The AVITA share price is down 1% to $5.05. This regenerative medicine company’s shares have come under pressure this year for a couple of reasons. The first was the negative impact that COVID-19 has had on the company’s sales. The second was AVITA’s removal from the ASX 200 index at the most recent quarterly rebalance. This will have led to selling from index-tracking ETFs and fund managers.

IDP Education Ltd (ASX: IEL)

The IDP Education share price has fallen over 1% to $20.33. This latest decline means the language testing and student placement services company’s shares have now fallen over 20% since hitting a 52-week high in late November. This may be down to profit taking and concerns that the international student market will take longer to recover than first expected.

Over The Wire Holdings Ltd (ASX: OTW)

The Over The Wire share price has continued its poor run and is down a further 1% to $4.20. Investors have been selling the telecommunications, cloud and IT solutions provider’s shares since the release of a trading update. Although that update reveals that the company expects to report a 22% to 28% increase in EBITDA in the first half, this has been boosted by acquisitions. Its existing businesses will deliver lower EBITDA than a year ago.

Viva Energy Group Ltd (ASX: VEA)

The Viva Energy share price has dropped 4% to $1.88 despite there being no news out of the fuel retailer. One broker that sees this share price weakness as a buying opportunity is Goldman Sachs. It recently maintained its buy recommendation and $2.40 price target on the company’s shares. The broker notes that its shares trade at a meaningful discount to peers.

More reading

• 3 top small cap ASX shares to buy
• Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower
• Here’s what is dragging the Over the Wire (ASX:OTW) share price lower
• These are the 10 most shorted shares on the ASX
• ASX 200 Weekly Wrap: ASX hits new post-March high

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 Avita Medical Limited, Idp Education Pty Ltd, and Over The Wire Holdings Ltd. The Motley Fool Australia has recommended Avita Medical Limited and Over The Wire Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Dusk Group Ltd (ASX: DSK) shares are rocketing higher in morning trade after the home fragrance product retailer provided a positive trading update and earnings guidance for the first half of the 2021 financial year (FY21). At the time of writing, the Dusk share price has surged 13.89% higher to $2.05.

What’s driving the Dusk share price higher?

The Dusk share price is surging this morning after the company confirmed its sales and earnings growth continued in November and December. Dusk Group reported it also ended the first half of FY21 with no drawn bank debt, significant surplus cash and a well-balanced inventory position.

Dusk’s earnings guidance for the first half of FY21 is based on unaudited financial results to the end of November and a preliminary estimate for December based on actual sales.

The company estimates sales for the first half of FY21 will be in the range of $90.0 to $90.5 million. That compares to $58.7 million in the first half of FY20. Earnings before interest and tax (EBIT) are estimated to be between $26.0 and $27.0 million. EBIT in the first half of FY20 was $9.7 million.

Commenting on the company’s performance, Dusk CEO Peter King said:

The results delivered across the first half of FY21 are well ahead of the results delivered in the prior corresponding period despite a significant period of disrupted trade in Melbourne. They build on the strong results delivered across the past three years and further demonstrate the success of our focused strategy and the ability of our team to execute, including in a volatile environment where agility has been key.

Dusk Group snapshot

Dusk is a specialty retailer of home fragrance products. The company offers a range of Dusk branded products, both from its physical stores and online. Its products include candles, reed diffusers, essential oils, electronic diffusers and air purifiers, and fragrance related homewares.

The company is a newcomer to the ASX, with Dusk shares commencing trading on 2 November 2020. While the reintroduction of lockdown measures in Victoria during its early trading weeks impacted instore sales, Dusk’s online presence offered consumers an alternative to brick and mortar shopping.

Dusk shares closed the first day of trading at $1.69. The Dusk share price reached a previous closing high of $1.92 on 10 December. At time of writing, shares are trading for $2.05 which represents a share price gain since 2 November of more than 21%.

By comparison the All Ordinaries Index (ASX: XAO) is up 13.34% over that same period.

More reading

• Why the Nuheara (ASX:NUH) share price is rocketing 23% higher today
• Why the DroneShield (ASX:DRO) share price is jumping 6% today
• FAANG stocks make their case to lead the Nasdaq in 2021
• 2 star stocks for your ASX retirement portfolio
• Why the BetMakers (ASX:BET) share price is surging higher

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

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The Nuheara Ltd (ASX: NUH) share price is back from the Christmas break with a bang.

In morning trade the Nuheara share price is rocketing 23% higher to 5.4 cents.

What did Nuheara announce?

This morning the smart and affordable hearing solutions provider released two big announcements.

The first announcement revealed that Nuheara has signed an agreement to manufacture HP-branded products for American multinational information technology company HP Inc (NYSE: HPQ).

According to the release, the hardware product purchase agreement has a contracted initial term of three years with automatic renewals for successive one-year periods.

This umbrella agreement is designed to manage the design, manufacture, and supply of multiple products throughout the life of the contract. The first Nuheara manufactured product to be supplied under the agreement is a HP branded True Wireless Earbud with charging case.

Utilising Nuheara-owned and developed intellectual property, this product is designed as a premium, compact audio earbud that will enhance the user’s ability to be productive, provide a personalised experience and can be used comfortably in dynamic and ever-changing physical environments. The product will also carry a Nuheara co-brand.

Management advised that the product is on schedule to commence mass shipment to HP in the third quarter of FY 2021. Nuheara has already manufactured and supplied HP the validation units of the product. There are no minimum or maximum supply volumes.

CEO Justin Miller commented: “We are delighted to extend our partnership with HP to a long-term supply agreement. This agreement is another pillar in Nuheara’s diversification of revenue streams, building on our growing Direct to Consumer sales with OEM partnerships. With an embedded strategic partner the size of HP, it provides the potential of significant upside to our global reach and scale.”

Institutional placement.

In a separate announcement, Nuheara revealed that it has raised $11.5 million before costs through an oversubscribed placement of 287.5 million new shares at an issue price of $0.04 per share.

Net proceeds from the placement will be principally used to fund the acceleration of direct to consumer sales and activities, as well as supporting credit terms for Nuheara’s manufacturing and production costs associated with the HP agreement.

More reading

• Why the DroneShield (ASX:DRO) share price is jumping 6% today
• FAANG stocks make their case to lead the Nasdaq in 2021
• 2 star stocks for your ASX retirement portfolio
• Why the BetMakers (ASX:BET) share price is surging higher
• Why the NEXTDC (ASX:NXT) share price is up 85% in 2020

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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DroneShield Ltd (ASX: DRO) shares are rocketing higher today on news the defence contractor has signed an additional government agency order. At the time of writing, the DroneShield share price has lifted 5.9% to 18 cents.

What’s driving the DroneShield share price?

The DroneShield share price is on the rise today after the company announced it has received a follow up order for its DroneGun Tactical hand-held, counter-unmanned aerial systems (UAS) products. The additional purchase is said to be from a Five Eyes country. The term ‘Five Eyes’ relates to a signals alliance between the United States, Canada, Australia, the United Kingdom, and New Zealand.

DroneGun Tactical is a portable, long range counter measure used against UAS threats. When attacking the target, the high-tech gun safely brings the enemy UAS down to ground with no peripheral damage, protecting the surrounding environment.

The deal, valued at around $400,000, represents ongoing commitments from government agencies, which have sought DroneShield products in the past. This includes a $900,000 purchase of DroneGun counter UAS products that was announced on 1 October. The latest transaction is due to be completed sometime in the first-quarter of the new year, pending usual export approvals.

Words from the CEO

Commenting on the contract award, DroneShield CEO Mr Oleg Vornik reinforced the company’s importance to defence markets. He said:

This order demonstrates adoption of our products at a mature sales cycle level, where ongoing repeat orders of meaningful scale start to occur. There is necessarily a larger upfront effort in developing the technology and achieving the initial adoption by tier 1 customers.

This order shows DroneShield moving to a subsequent phase of ongoing sales without requirement of testing and evaluation prior to each sale, as our products become the standard for counter-UAS technology amongst leading Government agencies globally.

DroneShield share price snapshot

The DroneShield share price has fallen pretty hard over the past 12 months, losing nearly 40% for shareholders. While the company signed off a slew of contracts in 2020, its share price has failed to take off.

Based on the current DroneShield share price, the company has a market capitalisation of $66.3 million.

More reading

• Why the DroneShield (ASX:DRO) share price is leaping higher today

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

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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.

Stocks continued to do well as Wall Street began the last week of 2020, with the market pushing further into record territory in mid-afternoon trading Monday, and the Nasdaq Composite (NASDAQ: .IXIC) up by nearly 1% shortly after 2 p.m. EST.

During the past year, there was a changing of the guard among Nasdaq stocks. Smaller companies like Zoom Video Communications Inc (NASDAQ: ZM) and CrowdStrike Holdings Inc (NASDAQ: CRWD) saw their share prices soar. Yet the well-known FAANG stocks held their own, and on Monday afternoon, Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Facebook Inc (NASDAQ: FB), and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) were all seeing share-price gains of 2% or more. Only Netflix Inc (NASDAQ: NFLX) was lagging, with a rise of less than 1.5%, but that gain came as CrowdStrike and Zoom were seeing substantial declines.

FAANG stocks remain sharp

To be clear, the year-to-date gains for the FAANG stocks are impressive. Apple is leading the way, up by more than 85%, but Amazon and Netflix aren’t too far behind. Even the lagging Facebook and Alphabet have managed to gain more than 30%, though those results fall short of the Nasdaq Composite’s 44% rise year to date.

AAPL data by YCharts.

All five of these stocks still have plenty of growth potential. Apple will have an amazing quarter due to the release of its 5G-enabled iPhone 12, for which millions of Apple fans have been waiting through several previous upgrade cycles. Moreover, news that Apple is looking to get into the electric vehicle business shows that its plans for innovation go well beyond its flagship device.

For Amazon, optionality is the name of the game. There’s hardly any industry beyond the reach of the e-commerce giant, which is currently taking a look at areas like real estate, pharmacy services, and grocery delivery.

Facebook hopes that it can get itself out of congressional committee rooms and find new ways to spur its revenue growth. Even as its namesake social media service matures, Instagram remains popular, and advertising sales could bounce back once the economy recovers further from the coronavirus crisis.

Lastly, Alphabet wants to see improvement after a somewhat sluggish 2020. Ad sales slumped during the worst period of pandemic-related economic shutdowns, but that should give the tech giant room to improve in 2021. Moreover, the breadth of its business provides it with chances to excel that many investors don’t even have on their radar screens yet, especially in the company’s “other bets” area.

The most vulnerable of the bunch?

If there’s a FAANG stock that’s most likely to face big challenges in 2021, it’s Netflix. The company roared to unprecedented growth in the first half of 2020, but it’ll be hard for it to keep up the pace. Even in the third quarter, a big slowdown in subscriber growth made investors nervous about the video streaming company.

Moreover, Netflix faces a lot of competition. New services from rivals have gained traction quickly, and the race to acquire and produce top-notch content will require it to lay out increasing amounts of capital. It’ll be interesting to see how Netflix’s recent subscription price hike will play in an environment in which there are so many alternatives.

Don’t count out the FAANG stocks

The FAANG companies are all so big that they simply won’t be able to match the growth rates of their much smaller counterparts on a percentage basis. Yet in terms of their importance, the FAANG stocks remain vital — and they’ll play a key role in determining the direction of the Nasdaq in 2021 and beyond.

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

More reading

• The top streaming stocks to buy in 2021
• Why Amazon’s stock is so expensive
• Report: authorities rejected Facebook offer to foster competitors’ growth
• Tesla asked Apple to buy it
• Is Apple (NASDAQ:AAPL) about to launch an electric car?

Dan Caplinger owns shares of Alphabet (A shares) and Apple. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Facebook, Netflix, and Zoom Video Communications and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Netflix, and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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If you’re trying to earn an income in retirement, it has become close to impossible with term deposits.

Why not term deposits?

Due to interest rate cuts, term deposits are now offering some of the lowest rates we’ve ever seen.

For example, Commonwealth Bank of Australia (ASX: CBA) will provide investors with a 0.55% per annum interest rate on term deposits of up to $2 million.

This means that if you invested $2 million into one of the bank’s term deposits, you would be earning interest of just $11,000 each year.

As a comparison, prior to COVID-19, the Australian share market was offering investors an average yield of approximately 4%.

Which means that the same $2 million invested into the share market would have yielded $80,000 in dividends. That’s a difference of $69,000.

In light of this, the share market arguably remains the best place to invest money to generate a passive income while in retirement.

But which shares should you buy?

There are a large number to choose from on the Australian share market, but two shares that could be great options according to Goldman Sachs are Coles Group Ltd (ASX: COL) and Telstra Corporation Ltd (ASX: TLS).

This is due partly to their defensive qualities, generous yields, and attractive valuations.

In respect to Coles, Goldman Sachs is positive on the company and has a buy rating and $20.50 price target on the supermarket operator’s shares.

It is forecasting a fully franked 64 cents per share dividend in FY 2021. Based on the current Coles share price of $18.47, this represents a 3.5% forward yield.

As for Telstra, Goldman Sachs has a buy rating and $3.60 price target on the telco giant’s shares. It is also forecasting a 16 cents per share fully franked dividend in FY 2021 and beyond.

Based on the current Telstra share price of $3.01, this would provide investors with a 5.3% dividend yield.

More reading

• 2 buy-rated ASX dividend shares for income investors to snap up
• Leading fund manager names the ASX dividend shares to buy in 2021
• These ASX dividend shares could be top Christmas gifts for income investors
• 8 issues that will impact investors in 2021: experts
• 3 top ASX dividend shares for a better retirement

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 Australia owns shares of COLESGROUP DEF SET. 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 BetMakers Technology Group Ltd (ASX: BET) share price is on the move on Tuesday following an acquisition update.

At the time of writing, the betting technology company’s shares are up 5.5% to 75.5 cents.

What did Betmakers announce?

This morning the company announced that UK-based Sportech has received shareholder approval for the divestment of its Racing and Digital assets to BetMakers for a total consideration of 30.9 million pounds.

This was the only condition precedent to completion of the acquisition. In light of this, BetMakers will now make a non-refundable initial payment of 6.2 million pounds, with the balance of 24.7 million pounds payable upon completion of the acquisition.

This will occur following satisfaction of certain customary conditions that only BetMakers can waive at its discretion, including transfer of licences.

This acquisition is being funded by a $50 million placement, which is due to settle on 31 December, and a $10 million share purchase plan.

Why is BetMakers acquiring Sportech’s Racing and Digital assets?

Management notes that the acquisition of Sportech’s Racing and Digital assets enables BetMakers to accelerate its international growth plans.

It also strategically positions the company to capitalise on emerging opportunities in the U.S. market, including fixed odds wagering.

The company has previously revealed that the deal had the potential to be a game-changer financially.

For example, on a pro-forma basis for FY 2020, acquired assets and with BetMakers’ existing operations would have delivered $56.1 million revenue and $7.7 million EBITDA.

As a comparison, BetMakers’ recorded stand-alone revenue of $9.2 million and EBITDA of $0.8 million in FY 2020.

When first announcing the proposed acquisition, BetMakers’ Managing Director, Todd Buckingham, commented: “This Acquisition will supercharge our entry into the U.S. and position the Company for substantial growth on the back of the emerging wagering opportunities in U.S. racing, including Fixed Odds, where we believe we are well placed.”

“The Acquisition would give us a meaningful presence in the U.S., including in 36 of the States and across more than 200 venues, 25 digital outlets and 9,000 betting terminals. It will also greatly expand our global customer base across the UK, Europe and Asia and provides us with an opportunity to expand our product offering at scale in these and other regions,” he concluded.

More reading

• Why the Betmakers (ASX:BET) share price is seesawing today
• Why the BetMakers (ASX:BET) share price is surging 12% higher today
• Why BetMakers, Medical Development International, Qantas, & Zip are dropping lower
• Why the BetMakers (ASX:BET) share price is crashing 15% lower today
• Why the BetMakers (ASX:BET) share price is up 12% to a record high

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

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