Shaver Shop Group Ltd (ASX: SSG) shares are climbing higher today. At the time of writing, the Shaver Shop share price is up 7.53% to $1.00. This came after the company released a business update about its performance during the September quarter of 2020.

What was in the announcement?

The company experienced a 19.8% growth in sales in the September quarter of 2020 compared to the September quarter of 2019. Unaudited sales were $49.1 million in the September quarter and were supported by 192% growth in online sales. Online sales represented 32.4% of total sales during the quarter.

According to Shaver Shop, its sales growth during the quarter was achieved despite the closure of approximately 20% of its stores for two months due to lockdowns in metro Melbourne. The announcement reported that higher sales were achieved due to strong growth in online sales and growth in regions outside Melbourne. Sales growth excluding Victoria was 31.2% in the September quarter.

The company stated that it had an unaudited net profit after tax (NPAT) of $4.9 million in the first quarter of FY2021, this was an increase of 185% compared to Q1 FY2020. Shaver Shop cited healthy gross profit margins and cost control in addition to strong sales growth as the reason behind its increased profit.

Shaver Shop CEO and Managing Director, Mr Cameron Fox, commented on the result stating, “Our customer service metrics remain at or near all-time highs, and we are well placed to continue benefitting from the accelerating trends toward DIY personal grooming and online shopping.”

The company did not provide guidance for its annual sales and earnings and did not comment on expected sales for the December quarter. The reasons it did not provide guidance included continuing uncertainty surrounding the coronavirus pandemic. 

About the Shaver Shop share price

Shaver Shop is a retailer that provides personal grooming and beauty products. The company operates in store and online. Shaver Shop has been listed on the ASX since 2016.

The Shaver Shop share price is up 355% since its 52-week low of 22 cents and has increased nearly 52% since the beginning of the year. The Shaver Shop share price is up 61.3% since this time last year.

More reading

• Why Brickworks, Flight Centre, Whitehaven, & Zip shares are dropping lower
• Angry staff at ASX company take industrial action
• ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay
• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• Here’s why the IPH (ASX:IPH) share price is edging higher

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.

The post Why the Shaver Shop (ASX:SSG) share price is up 8% today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/340uZV7

Insurance Australia Group Ltd (ASX: IAG) employees have voted to take protected industrial action to protest an “unacceptable” pay offer.

The Finance Sector Union (FSU) and the insurance provider started negotiations for a new enterprise agreement late last year, but the talks were paused in March when COVID-19 struck.

The union claims the two sides reached an “in-principle” enterprise agreement (EA) before the pause – and that a new proposal from the company is inferior to what was previously agreed.

The pre-COVID offer was 2% annual salary increases over 3 years, according to FSU. But IAG is now proposing 1% for the first 2 years then 1.5% for the 3rd year.

“Having reached agreement in principle, IAG has spent the last several months dragging its feet before telling staff they weren’t worth a decent pay rise and walking away from its previous offer,” said FSU national assistant secretary Nathan Rees.

“This is an appalling breach of faith by an employer which fails to understand that a company’s greatest asset is its staff, who have worked hard through difficult circumstances this year to keep IAG in business.”

IAG employees are also unhappy with the removal of clauses relating to “job security” and “working from home”.

Staff will now take their case to the Fair Work Commission to initiate protected industrial action.

It’s not easy running a business after a pandemic

An IAG spokesperson told The Motley Fool that the new EA struck the “right balance” between running its business and the needs of its staff.

“We’re not immune from the significant impacts of the pandemic – not only from what we’ve experienced this year, but into the future,” said the spokesperson.

“Importantly, we believe this agreement will see IAG better placed to be able to maintain high levels of employment as we manage through the recession.”

The Motley Fool understands the new proposal includes clauses on diversity and inclusion, and new leave entitlements such as a 13% contribution on the unpaid portion of parental leave, domestic violence leave, NAIDOC leave and gender affirmation leave.

Rees said that even though pay increases had been cut due to COVID-19, they were dependent on performance targets that had not also been amended.

“IAG staff believe those targets are unreasonable because they haven’t been uniformly adjusted even though economic circumstances have changed radically,” he said.

“Workers at IAG have been working hard through devastating bushfires, floods and now COVID-19 to maintain services to customers, only to be rewarded by a pay offer that falls short of what is reasonable.”

IAG shares are down 1.94% at the time of writing, trading at $4.80. The IAG share price started this year at $7.58.

More reading

• ASX 200 rises on mixed day, big gold merger
• ASX 200 down 0.2%: Northern Star & Saracen announce mega merger, IAG settles class action
• Why IAG, Mayne Pharma, Mesoblast, & Temple & Webster shares are tumbling lower
• The ASX stocks most leveraged to the Victorian economy re-start
• ASX 200 drops another 0.8%, Magellan (ASX:MFG) reveals a large investment

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. 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 Angry staff at ASX company take industrial action appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2GVeK2J

At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory but has fallen just short. The benchmark index is currently down a fraction to 6,192.2 points.

Here’s what is happening on the market today:

Bank of Queensland impresses.

The Bank of Queensland Limited (ASX: BOQ) share price is storming higher today after impressing investors with its full year result this morning. For the 12 months ended 31 August, the regional bank posted cash earnings to $225 million. Although this was a 30% decline on the prior corresponding period, it was ahead of expectations. The analyst consensus estimate was for cash earnings of $204 million.

CSL guidance update.

The CSL Limited (ASX: CSL) share price is pushing higher on Wednesday following the release of its annual general meeting presentation. Within its presentation, the biotherapeutics giant provided an update on its guidance for FY 2021. It now expects revenue growth in the range of 6% to 10%, with net profit after tax of approximately $2.170 to $2.265 billion in constant currency. The latter implies growth of 3% to 8%, which compares to its previous guidance of 0% to 8% growth.

Afterpay AUSTRAC update.

The Afterpay Ltd (ASX: APT) share price hit a new record high this morning after providing a positive update on its Anti-Money Laundering and Counter-Terrorism Financing audit. According to the release, after considering the final audit report and Afterpay’s response to the findings, AUSTRAC has decided it will not be taking any further regulatory action.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Wednesday has been the EML Payments Ltd (ASX: EML) share price with a 7% gain. This follows the release of an investor briefing this morning. The worst performer has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with a 5% decline. This morning Credit Suisse downgraded the travel company’s shares to a neutral rating with a $15.31 price target.

More reading

• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• Why ASX gambling shares like PointsBet (ASX:PBH) have surged in 2020
• CSL (ASX:CSL) share price pushes higher on FY 2021 guidance update
• Why the James Hardie (ASX:JHX) share price is edging higher today
• Is it $80 or $100 next for the Afterpay (ASX:APT) share price? 

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. and EML Payments. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended EML Payments and Flight Centre Travel Group 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.

The post ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/313NENw

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is fighting hard to maintain its winning streak. At the time of writing, the benchmark index is off its lows and down slightly to 6,192 points.

Four shares that have not let that hold them back are listed below. Here’s why they are storming higher:

The Afterpay Ltd (ASX: APT) share price is up over 2.5% to $96.99. Investors have been buying the payments company’s shares today following an update on its Anti-Money Laundering and Counter-Terrorism Financing audit. According to the release, AUSTRAC has considered the final audit report and Afterpay’s response to the findings and has decided it will not be taking any further regulatory action.

The Bank of Queensland Limited (ASX: BOQ) share price has stormed almost 4% higher to $6.65. The catalyst for this was the release of a stronger than expected full year result this morning. For the 12 months ended 31 August, the regional bank posted a 30% decline in cash earnings to $225 million. This compares favourably to the consensus estimate of $204 million.

The EML Payments Ltd (ASX: EML) share price has jumped 8.5% higher to $3.55 following the release of an investor update. Although the update contained no new information, management spoke positively about the payments company’s future and believes it is well-positioned for growth.

The Sonic Healthcare Limited (ASX: SHL) share price is up 3% to $35.76. Investors have been buying the healthcare company’s shares after the release of its first quarter update. For the three months ended 30 September, Sonic delivered a 29% increase in revenue to $2,144 million and a 71% lift in EBITDA to $580 million. This impressive growth was driven by very strong demand for COVID-19 testing services globally. However, management has warned not to expect this level of growth to persist over the remainder of FY 2021.

More reading

• Sonic Healthcare (ASX:SHL) share price higher after COVID-19 driven Q1 profit surge
• Is it $80 or $100 next for the Afterpay (ASX:APT) share price? 
• Bank of Queensland (ASX:BOQ) share price higher following FY 2020 results
• 3 ASX tech shares that pay dividends
• 2 unstoppable ASX shares to buy with $2,000

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 EML Payments. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended EML Payments and Sonic Healthcare 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.

The post Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/371CSey

The IPH Ltd (ASX: IPH) share price has this morning edged higher after publishing its annual report before market opening. At the time of writing, the IPH share price has increased 0.41% to $7.36. This came after the company reported a 42% jump in underlying revenues, and a 24% increase in underlying net profit after tax (NPAT). IPH focuses on patents and trademarks. In fact, it was the first IP (intellectual property) focused company listed on the ASX. 

Financial highlights

IPH has been undertaking a growth strategy underpinned by buying and integrating smaller firms. Moreover, during FY20, the company integrated its acquisition of Watermark into its Griffith Hack firm. In addition, it completed the integration of Xenith IP after an initially contentious acquisition. The mergers have enabled the company to reduce operating costs and offset lower client filings due to pandemic lockdowns. 

Across the company’s operations, the Asian IP business saw an increase, while the Australian and New Zealand businesses declined by 5%. Specifically, the Asian business saw a like-for-like revenue increase of 6% and like-for-like earnings before interest taxes, depreciation and amortisation (EBITDA) of 8%. Furthermore, EBITDA margin increased from 41.3% to 42.2%. I believe the growth in its Asian market share should bolster the IPH share price as a predictor of future performance. 

Highlights of IPH’s Asian sector performance included Singapore, where the company retains its leading patent market share position with 23.3%. Moreover, the company remains the patenting market leader in Australia with combined group patent market share of 36.5%, and has the number one position for patents and trademarks in New Zealand.

An interesting highlight for me personally was the continued growth of the company’s software-as-a-service (SaaS) platform called WiseTime. This product is designed to increase billable time for attorneys. As such, it provides a tech company aspect to boost the IPH share price further. 

Outlook for the IPH share price

Maintaining leading market positions and growing ancillary markets are IPH’s strategic priorities in FY21. This means taking some time to digest recent acquisitions, both in Australia and New Zealand. Nonetheless, the company remains on the look out for potential acquisition targets while focusing on its organic growth.  

At the time of writing, the IPH share price is up 3.66% over the past five days’ trading, and is currently paying a trailing 12-month dividend yield of 4%. 

Foolish takeaway

The IPH share price remains a good investment in my view. The company has been in a perpetual growth stage since listing on the ASX via acquisitions. In addition, it was able to deliver solid results despite the global pandemic. 

More reading

• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• Why ASX gambling shares like PointsBet (ASX:PBH) have surged in 2020
• CSL (ASX:CSL) share price pushes higher on FY 2021 guidance update
• Why the James Hardie (ASX:JHX) share price is edging higher today
• Sonic Healthcare (ASX:SHL) share price higher after COVID-19 driven Q1 profit surge

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends IPH Ltd. The Motley Fool Australia has recommended IPH 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.

The post Here’s why the IPH (ASX:IPH) share price is edging higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3iYbPDc

ASX gambling shares have been strong outperformers this year. While the S&P/ASX 200 Index (ASX: XJO) has fallen 7.4% lower, the value of companies like Pointsbet Holdings Ltd (ASX: PBH) has rocketed higher.

Now, new data from the Federal Government’s Australian Institute of Family Studies (AIFS) has confirmed what’s driving top ASX gambling shares higher this year.

What does the latest research say?

It’s not surprising that demand for gambling has surged given recent financial results for ASX gambling shares. However, the latest research shows just how much of a shift has been happening in gambling behaviour in 2020.

The AIFS surveyed more than 2,000 Australians who gambled during June and July 2020 as well as interviewing exports across gambling research, regulation, policy and treatment.

Almost 1 in 3 survey participants signed up for a new online betting account during the coronavirus pandemic while 1 in 20 started gambling online.

Participants gambled more often during COVID-19 with the proportion of those gambling 4 or more times a week climbing from 23% to 32%.

Horse racing, sports betting, greyhound racing and lotto were the main gambling products used before and during COVID-19. Young men were the most likely to sign up for new accounts and increase frequency and size of gambling spend.

What do the findings mean for ASX gambling shares?

It’s clear that gambling demand has been surging which has boosted demand for ASX gambling shares. For instance, the Pointsbet share price has rocketed 160.8% higher since the start of the year.

It’s far from the only wagering group to see its value on the rise. The Betmakers Technology Group Ltd (ASX: BET) share price was smashed in the March bear market but is now up 217.9% higher in 2020.

Foolish takeaway

ASX gambling shares have been rocketing higher this year and the latest research from the AIFS confirms the strong demand trends pushing those valuations higher.

More reading

• Why the James Hardie (ASX:JHX) share price is edging higher today
• 5 things to watch on the ASX 200 on Wednesday
• Short-sellers are stepping up their attack on these ASX stocks
• ASX 200 jumps more than 1%, big ASX banks rise
• Top brokers are urging you to buy these ASX stocks today

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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.

The post Why ASX gambling shares like PointsBet (ASX:PBH) have surged in 2020 appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34Tb0Xv

The CSL Limited (ASX: CSL) share price is climbing higher today following the release of its annual general meeting presentation.

At the time of writing, the biotherapeutics company’s shares up 1.5% to $302.96.

What was in CSL’s annual general meeting update?

As well as the usual rundown on its performance over the last 12 months and board changes, CSL provided the market with a trading update and its expectations for FY 2021.

According to the release, trading conditions have been relatively mixed for CSL this financial year because of the pandemic.

Management expects its Seqirus vaccines business to continue to benefit from its differentiated products and strong demand for influenza vaccines. The latter is being driven in part by Governments wanting to protect their populations from contracting COVID and influenza.

The company’s Albumin sales are expected to normalise following the successful transition to its new business model in China.

Management is also expecting strong demand for its plasma and recombinant therapies to continue. However, due to COVID restrictions, which are expected to restrain its ability to collect plasma, the costs of collection are expected to increase.

The good news is that the company has a number of initiatives underway to mitigate the impact.

What about research and development?

CSL also provided an update on its research and development (R&D).

While its R&D response to COVID, as well as new initiatives, will put upward pressure on its R&D expense, it is still expected to be within its guidance range of 10-11% of revenue.

Speaking of guidance, CSL has updated its profit guidance for FY 2021.

It now expects revenue growth in the range of 6 to 10% in FY 2021, with net profit after tax of approximately $2.170 to $2.265 billion in constant currency. The latter implies growth of 3% to 8%.

This is a slight tightening of the range advised with its FY 2020 results of 0% to 8%.

More reading

• 3 ASX 200 growth shares to buy today
• $10,000 invested in the CSL (ASX:CSL) IPO is worth how much now?
• Ignore EBITDA and P/E ratios? This fundie does
• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares

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 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.

The post CSL (ASX:CSL) share price pushes higher on FY 2021 guidance update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2SYx0dL

The James Hardie Industries plc (ASX: JHX) share price is climbing today after an upgraded guidance for FY21.

The news has sent the James Hardie share price to $36.52, up 3.69%. This compares to the S&P/ASX 200 Index (ASX: XJO) which is down 0.1% to 6,191 points.

Let’s take a look at what James Hardie does and what it reported today.

What does James Hardie do?

James Hardie is a manufacturer of fibre cement siding and backerboard. The fibre cement product is used in a number of markets, including residential construction, manufactured housing, repair and remodelling as well as commercial applications.

The company operates in the United States, Australia, New Zealand, the Philippines, Europe and Canada.

Upgraded guidance

James Hardie raised its net operating profit after tax (NOPAT) guidance for FY21. The adjusted guidance range to be between US$380 million and US$420 million.

For the second quarter, the company anticipates group net sales to jump around 12% between US$735 million and US$740 million. Group adjusted earnings before interest and tax (EBIT) is also expected to increase by approximately 22%, representing an amount between US$160 million and US$165 million.

James Hardie noted that the second quarter result would see its key financial metrics at all-time quarterly highs.

The record performance is expected to be made possible by growth in all geographical markets. The company noted this would be the first time North America, Asia Pacific and Europe had all provided strong returns.

James Hardie CEO, Dr Jack Truong welcomed the result, saying:

This is the sixth consecutive quarter that we have delivered growth above market with strong returns. We continue to achieve these results by executing better every day against our strategic imperatives and seamlessly serving our customers, while improving working capital for our customers and for the company.

LEAN manufacturing

In addition to the upgraded guidance, James Hardie advised it had made significant progress on its internal efficiencies. The company’s LEAN manufacturing transformation and Zero-harm focus has created demand for its premium-quality products. The fibre cement and fibre gypsum building materials are said to be the preferred brand for homeowners.

Dr Truong said the transformation began more than 18 months ago.

Delivering these consistent results is a testament to the foundational strength we are building within our company. Our commitment to Zero Harm and our focus on global manufacturing efficiency has allowed us to consistently provide a high level of service to our customers and deliver quality products to the markets in which we operate around the world.

This transformation, which is driven by a continuous improvement mindset, has enabled our ability to deliver consistently improving financial results.

James Hardie share price summary

The James Hardie share price has been on an upward trend since the market meltdown in March. The world’s number 1 producer of fibre cement saw its share price fall to a low of $12.54 in March and jump almost 200% to today’s price.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Short-sellers are stepping up their attack on these ASX stocks
• ASX 200 jumps more than 1%, big ASX banks rise
• Top brokers are urging you to buy these ASX stocks today
• 3 ASX 200 growth shares to buy 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. 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 Why the James Hardie (ASX:JHX) share price is edging higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3dqoNbO

The Sonic Healthcare Limited (ASX: SHL) share price has been a positive performer on Wednesday.

In morning trade the healthcare company’s shares are up 2% to $35.40.

Why is the Sonic share price pushing higher?

Investors have been buying the company’s shares after the release of its first quarter update.

According to the release, Sonic has started the year very strongly and delivered first quarter revenue growth of 29% to $2,144 million.

Things have been even better for its earnings thanks to a material increase in its margins. For the three months ended 30 September, Sonic’s earnings before interest, tax, depreciation and amortisation (EBITDA) was up 71% on the prior corresponding period to $580 million.

What is driving Sonic’s strong growth?

The key driver of Sonic’s strong performance in the first quarter has been COVID-19 testing.

Management notes that the company is continuing to perform a crucial frontline role in combating the COVID-19 pandemic. Its laboratories in Australia, the United States, and Europe are currently testing thousands of people every day for COVID-19. To date, Sonic has conducted more than 9 million COVID-19 tests globally.

Pleasingly, the rest of its business is performing well and supporting its growth.

Management advised that the majority of its divisions grew base business revenues during the quarter. Combined with the cost saving initiatives that were implemented during the early days of the pandemic, their earnings have been growing nicely.

Contract updates.

Sonic advised that the Australian Government has recently extended Sonic’s contract to provide the dedicated pathology service for rapid sample collection and testing for COVID-19 in residential aged care facilities to March 2021.

Over 2,700 residential aged care facilities across the country are eligible for this service, which is provided through Sonic’s national network of laboratories and collection teams.

In addition, Sonic has been selected and funded by the US and UK governments to create additional COVID-19 PCR surge testing capacity in preparation for the Northern Hemisphere winter.

“Unprecedented times.”

Sonic’s CEO, Dr Colin Goldschmidt, commented: “In these unprecedented times, Sonic’s global leadership teams continue to adapt and respond superbly to a fluid COVID-19 environment encompassing increased testing volumes, maintenance of rapid turnaround of results, evaluation of new testing platforms, global supply chain issues, different collection modalities and necessary IT enhancements.”

“Our leaders continue to draw on Sonic’s strong Medical Leadership culture, and to leverage the group’s collective management and medical experience and team spirit at national and international levels. In addition, Sonic’s decades-long investments in cutting edge infrastructure and equipment have created the flexibility required to embrace the rapid growth and new environment presented by the COVID-19 pandemic,” he added.

Outlook.

No guidance was given for the remainder of the year due to the ongoing level of uncertainty resulting from the pandemic.

Management also warned that the growth levels in the first quarter may not continue throughout FY 2021.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX shares moving higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare 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.

The post Sonic Healthcare (ASX:SHL) share price higher after COVID-19 driven Q1 profit surge appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3nQwLjd

The Afterpay Ltd (ASX: APT) share price has defied gravity and set a new record all-time high of $98.68 this morning. With its share price chart looking almost vertical in recent months, what’s next for the Afterpay share price? 

A tech share bull market? 

The broader tech market has been running strong with the Nasdaq Composite (NASDAQ: .IXIC) eyeing previous record all-time highs set in September. Back at home, the S&P/ASX 200 Index (ASX: XJO) finally broke out of its COVID-19 induced trading range between 5725 and 6200 in intraday trading yesterday. The strength in the ASX 200 has seen the S&P/ASX All Technology Index (ASX: XTX) deliver a 1-month return of 20% and 5-day return of 10%. Clearly the recent strength in the broader market and tech shares has supported the Afterpay share price run. However, give Afterpay an inch and it’ll take a mile. 

Broad BNPL run 

The Afterpay share price has run almost 23% in October, at the time of writing. However, it isn’t an outlier as there has been a broad appreciation in buy now, pay later (BNPL) share prices in October. 

• Zip Co Ltd (ASX: Z1P) share price up around 22% 
• Openpay Group Ltd (ASX: OPY) share price up around 9% 
• Sezzle Inc (ASX: SZL) share price up around 18% 
• Splitit Payments Ltd (ASX: SPT) share price up around 12% 
• Laybuy Group Holdings Ltd (ASX: LBY) share price up around 16% 

I believe Afterpay and Zip are clear leaders in the BNPL sector. As such, I am avoiding other players which I believe have exhibited inferior share price performance, despite appearing ‘cheaper’ or ‘playing catch up’. Nonetheless, the BNPL sector appears to have put the fears regarding Paypal Holdings Inc (NASDAQ: PYPL) and increased competition from players such as the big 4 banks behind it. 

What’s next for the Afterpay share price? 

Personally, I believe the Afterpay share price has largely had its run and without additional announcements or a push from the broader market, is likely to pullback from current prices. Afterpay typically holds its AGM in mid-November at which it will likely update the market with its transaction volumes, geographic expansions and/or partnerships. Investors should look out for details such as: 

• Transaction/revenue growth and any potential impacts due to competition/Paypal 
• Update for its North America expansion into Canada in August 2020 
• Acquisition of Pagantis to launch in Spain, France and Italy with regulatory approval to also operate in Portugal 
• First step in Asia with its small acquisition of a Singaporean-based company operating in Indonesia (EmpatKali) 
• Potential opportunities leveraging its Tencent Holding Ltd (HKG: 0700) network and relationships to expand into new regions in Asia 

Foolish takeaway

I believe buying the Afterpay share price at today’s prices would be the equivalent of chasing your losses. If I was still eager to buy Afterpay shares, I would instead be watching closely on the side lines for a better risk/reward entry price. 

More reading

• 3 ASX tech shares that pay dividends
• 2 unstoppable ASX shares to buy with $2,000
• 3 hot ASX shares to buy when you’re young
• 3 reasons I don’t use stop-loss orders for ASX shares
• Why the Afterpay (ASX:APT) share price has hit a new record high

Lina Lim has no position in any of the stocks mentioned. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc 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 and 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.

The post Is it $80 or $100 next for the Afterpay (ASX:APT) share price?  appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3lKnNCl