Payright Ltd (ASX: PYR) shares are on the rise today after the company released its trading update for the final quarter of 2020 calendar year.

In morning trade, the Payright share price is up 5.8% to 90 cents.

What driving the Payright share price higher

For the period ending December 31, Payright revealed strong quarter-on-quarter growth in gross merchandise value (GMV) and customer numbers across the Australia and New Zealand region.

Total group GMV came to $20.6 million for the quarter, up 28% on the prior corresponding period.

The buy now, pay later (BNPL) provider attributed its solid performance to a direct strategy of offering higher-value purchases to its customers.

In addition, the business expanded its customer base to 42,300, which represented a lift of 13% on the September quarter. This was underpinned by Payright’s approach in adding new merchants to its growing portfolio, which in turn harnessed new customers.

The company signed 256 agreements in the December period complementing its 2,800-merchant partnerships. Payright is currently tapped into the retail, home improvement, health and beauty, photography, education and automotive sectors.

The company further noted that it is uniquely positioned throughout Australia and New Zealand as a high-value ‘considered’ purchases provider. Offering between $1,000 to $20,000, Payright highlighted its product differentiation to existing players in the BNPL market. Higher-value purchases allow customers to pay for more expensive products and services that are not available from other BNPL providers.

Management commentary

Payright Co-CEO  Piers Redward, welcomed the results, saying:

In addition to the strong momentum across our target markets, the progress we are making in New Zealand is clear evidence of the significant opportunity for Payright to assist businesses which are seeking a consistent solution across both geographies. We believe this will help to further strengthen our position in Australia, particularly in relation to merchants which operate across both countries.

Payright Co-CEO Myles Redward added:

The growth we are seeing is a direct outcome of the strategy we are pursuing. This includes complementary customer and merchant acquisition strategies to keep growing our penetration rates across both geographies and across our key industry sectors, as well as the enhancement of integrated technology solutions spanning ecommerce, marketplaces and point of sale software designed to accelerate our growth agenda.

More reading

• BNPL debutant Payright (ASX:PYR) share price tumbles 12% on IPO
• New BNPL enters ASX: How it promises to be different

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

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The competition authority has urged the government to reform how Sydney Airport Holdings Pty Ltd (ASX: SYD)’s take-off and landing slots are assigned to make it easier for challenger airlines to enter the market.

Domestic aviation has long been an effective duopoly between Qantas Airways Limited (ASX: QAN) and the now-privately owned Virgin Australia.

A third player, Regional Express Holdings Ltd (ASX: REX), has traditionally served rural routes but will start servicing the lucrative Sydney-Melbourne-Brisbane triangle from March.

The Australian Competition and Consumer Commission (ACCC), in a submission to a senate inquiry, called for changes to make the sector more competitive.

One way is to reform how airport slots are allocated to make it easier for new players to compete.

Currently, slots are given to airlines indefinitely.

“There have been growing concerns within industry that airlines have been able to exploit the slot-management scheme to hoard slots and/or use slots inefficiently to maintain their market power and prevent entry or expansion by competitors,” said the ACCC submission.

The ACCC has proposed financial deterrents to stop airlines from hogging slots while not using them.

Other ways the big airlines stifle competition

The competition watchdog also reported it has received complaints from within the aviation industry about ‘capacity dumping’ and ‘predatory pricing’.

Both practices lessen competition by making it harder for newcomers to challenge the duopoly.

Capacity dumping involves putting on more flights and seats than is necessary for a particular route. Regional Express has accused Qantas of this practice by starting on rural routes that don’t have sufficient demand for 2 airlines.

Predatory pricing is when airlines sell seats at below the cost of providing them.

“Cheap airfares may be beneficial to consumers in the short term,” the ACCC stated.

“However, if an airline offering airfares at below cost results in competitors exiting the market, consumers could be left with substantially more expensive airfares and less choice in the long term.”

According to ACCC chair Rod Sims, sometimes his organisation may identify “concerning behaviour” but it falls short of the level required for it to take “enforcement action”.

“The ACCC will be ready to recommend potential policy options, including potential regulatory protection for airline users, should there be signs that the competition is not effective,” he said.

“Rivalry between airlines can encourage cheaper airfares, more favourable terms and conditions, better quality in-flight services, more frequent services and a broader network reach.”

More reading

• Either Rex or Virgin will perish: Qantas boss
• Leading brokers name 3 ASX shares to buy today
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• Qantas (ASX:QAN) sells international flights for July

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited and Sydney Airport Holdings Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Resolute Mining Limited (ASX: RSG) share price is on course to end the week on a disappointing note.

In morning trade the gold miner’s shares are down 4% to 73.5 cents.

This latest decline means the Resolute share price is now down over 50% from its 52-week high.

Why is the Resolute share price dropping lower?

Investors have been selling the company’s shares this morning following the release of a market update.

According to the release, Resolute recorded gold production of 89,888 ounces during the three months ended 31 December. This comprised production of 35,747 ounces from Syama Sulphide, 10,754 ounces from Syama Oxide, and 43,387 ounces from Mako.

This led to the company’s total gold production during calendar year 2020 coming in at 395,136 ounces with an all-in sustaining cost (AISC) of US$1,074 an ounce.

While this means its costs just scraped in at the high end of its guidance range, its production fell short of its downgraded guidance of 400,000 ounces.

Management blamed issues at the Syama Gold Mine in Mali for the guidance miss. It notes that open pit operations experienced mining equipment availability and process plant material handling issues.

At the end of the period, Resolute had cash and bullion of US$106 million.

What about 2021?

For the 12 months to 31 December 2021, management is forecasting a decline in total gold production to 350,000 ounces to 375,000 ounces.

It is also expecting its costs to increase to an AISC of between US$1,200 an ounce and US$1,275 an ounce.

The main drag on its performance in 2021 will be its Mako operation. While gold production is expected to lift at Syama, management is forecasting a sizeable production decline and an increase in costs at Mako.

Management advised that this is due to a cut-back of the main pit being undertaken, which will provide access to deeper sections of the deposit and increase the life of mine.

Non-sustaining capital expenditure is forecast to be US$29 million. This is inclusive of the Mako cut back of US$13 million and capitalised exploration expenditure of US$6 million. Sustaining capital expenditure of US$49 million is included in its AISC.

More reading

• Why the Costa Group share price (ASX:CGC) is crashing this morning
• 5 things to watch on the ASX 200 on Wednesday
• These were the worst performers on the ASX 200 last week
• Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower
• These were the best performing ASX 200 shares last week

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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An uncertain economic and political outlook may mean that a plan to invest in shares today seems unappealing to some individuals. After all, last year was an incredibly challenging period that could yet continue in the coming months.

However, on a long-term view, buying shares today could be a sound move. Through investing money in a diverse range of high-quality businesses while they trade at low prices, an investor may be able to achieve financial freedom.

Buying high-quality shares today

Investing in shares today clearly carries short-term risks. As such, it could be a good idea to buy companies that have solid financial positions and wide economic moats. Their strong balance sheets that contain little or no debt may mean they are under less pressure should the economic outlook deteriorate. This may increase their chances of surviving what could be a challenging period in 2021 to benefit from a likely long-term stock market recovery.

Similarly, companies with wide economic moats may be able to improve their market positions after present economic challenges. Their unique products, low cost bases or brand loyalty may mean they produce stronger growth rates in the coming years. This may contribute to higher share prices via more generous valuations that make a positive impact on an investor’s chances of achieving financial freedom.

Investing in shares today at low prices

Investing in shares today could be a profitable long-term move because of the low valuations that are present in many sectors. Investors seem to be cautious about the outlooks for a number of industries that could produce disappointing returns in the coming months. However, as the economy recovers and consumer confidence improves, those same sectors could benefit the most from an improving operating environment.

Therefore, unpopular shares that trade at cheap prices could provide scope for strong capital gains in the long run. Buying any asset at a discount to its intrinsic value has historically provided greater scope for capital growth as its outlook improves. Of course, it is important to only invest money in high-quality businesses, rather than simply buying cheap stocks. Otherwise, an investor may end up with a portfolio full of low-quality businesses that lack recovery potential.

Considering risk when aiming for financial freedom

Managing risk is likely to be an important consideration for any investor who is seeking to achieve financial freedom. After all, the world economy faces an uncertain future in 2021.

Therefore, diversifying across a wide range of companies and sectors could be a sound move. It may allow an investor to become less reliant on one or a small number of companies for their returns. This may reduce their risk of loss, improve their return prospects and increase their chances of becoming financially free in the coming years.

More reading

• Fortescue (ASX:FMG) share price climbing despite cost blowout rumours
• The Whispir (ASX:WSP) share price is 30% lower than its 52-week high
• Here’s why ASX bank shares might juice up their dividends in 2021
• Why the Objective (ASX:OCL) share price just jumped 11% to a record high
• Why the Integrated Research (ASX:IRI) share price is dropping lower

Motley Fool contributor Peter Stephens 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 Fortescue Metals Group Limited (ASX: FMG) share price has climbed 1.37% higher in early trade today despite reports of cost blowouts at its Iron Bridge Magnetite Project.

Why is the Fortescue share price under pressure?

According to a report in The Australian, Fortescue is looking at revising its project costs. Industry sources quoted by the paper say the US$2.6 billion project could see costs increased by 25%.

The report noted that Fortescue has not yet agreed to a revised budget with its project partner, Formosa Plastics. The Taiwanese plastics company owns a 31% stake in the project.

However, it’s worth noting Fortescue said in October that the project was on budget and scheduled to deliver its first shipment in 2022.

The Fortescue share price has had a good run over the past 12 months. Shares in the Aussie iron ore miner have surged 128.2% higher as at Thursday’s close.

News of the cost blowouts haven’t affected the ASX 200 share in early trade even as the S&P/ASX 200 Index (ASX: XJO) trends lower.

According to the article, industry sources have said that all major projects in Western Australia could be facing budget pressures.

A rising Aussie dollar as well as higher input costs were cited as key factors behind the budget stress.

The Aussie dollar has been climbing higher as iron ore prices soar and foreign countries continue to purchase our key exports.

What is the Iron Bridge project?

The Iron Bridge project is a magnetite mine in Western Australia setup as a joint venture between Fortescue and Formosa.

The Project is located 145km south of Port Hedland and is one of the biggest magnetite resources in Australia.

Foolish takeaway

The Fortescue share price has climbed higher in early trade despite broad market weakness and the overnight report. It’s worth noting that the reported cost blowouts remain unconfirmed by the iron ore giant.

More reading

• This ASX 200 stock is tipped to lift dividends by 87% this year
• 5 things to watch on the ASX 200 on Friday
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• 3 reasons we might see higher ASX share prices in 2021
• Does the ASX care that Donald Trump has been impeached, twice?

Motley Fool contributor Ken Hall 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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After surging as high as $5.24 last year, shares in ASX tech company Whispir Limited (ASX:WSP) have lagged recently, with the Whispir share price sliding all the way back down to just $3.62 as at the time of writing – that’s a drop of over 30%. Has the wind gone out of the sails of this once up-and-coming tech company?

First, let’s take a look at what Whispir actually does

With a market cap still well under $400 million, Whispir may be flying under the radar for many investors, so it’s worth providing a little background on the company’s operations.

Whispir is a technology company that helps manage and streamline communications workflows for business clients. Its centralised platform helps customers create high quality, customisable templates for email, web and social media communications, as well as drive insightful reporting.

What drove the Whispir share price in 2020?

Whispir was one of a number of young ASX tech shares to have performed well even during the most restrictive coronavirus lockdowns imposed in Australia last year. The share prices of companies like Megaport Limited (ASX:MP1) and Nitro Software Limited (ASX:NTO) stormed to new highs in the latter half of 2020. However, they have also come off the boil in recent months.

What made these three companies so similar was their ability to meet the unique demands of the COVID-19 operating environment. Megaport’s cloud network services helped companies adapt to remote working environments by increasing their network connectivity and giving them the ability to manage their bandwidth usage.

Nitro develops software that digitises document workflows. It helped business clients to create, edit, sign and store important documents entirely online, reducing the need for traditional forms of hardcopy file management. Again, this service provided valuable support to companies forced to adapt to remote working and social distancing.

Whispir also supported its business clients through COVID-19 by helping to manage their communications obligations. The company was quick to develop standardised templates to assist in communicating with staff and customers throughout the pandemic. For example, the company reported that one of its clients, Mt Buller Ski Resort, had been using its communications templates to manage its contact tracing requirements.

More recent news

Whispir’s most recent market update was from all the way back in October 2020, when it reported on its financial results for the first quarter of FY21. The company onboarded 35 new customers during the quarter – its strongest first quarter on record – and grew annualised recurring revenue by 26.7% against the prior corresponding period to $43.7 million.

Given the strong start to FY21, it’s difficult to speculate on the reason behind the decline in the company’s share price.

For its part, Whispir is bullish on its outlook for FY21, despite the continued uncertainty caused by COVID-19. In his address at the company’s annual general meeting, Whispir CEO Jeromy Wells stated that the company was forecasting full year revenue growth for FY21 in the range of 21% to 30% to between $47.5 million and $51 million. Earnings before interest, tax, depreciation and amortisation expenses is also set to improve by between 14% and 35% year-on-year.

More reading

• These small cap ASX shares have huge growth opportunities
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• These were the worst performing ASX 200 shares last week
• The Megaport (ASX:MP1) share price is down 8% this week
• Why Nick Scali, Nitro Software, Silver Lake, & Xero shares are dropping lower

Rhys Brock owns shares of MEGAPORT FPO, Nitro Software Limited, and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO and Whispir Ltd. The Motley Fool Australia has recommended MEGAPORT FPO, Nitro Software Limited, and Whispir 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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As all shareholders of ASX banking shares would know, 2020 wasn’t exactly a great year to be holding any of the ASX’s most famous dividend payers. The onset of the coronavirus pandemic, and the subsequent economic shock, played havoc with ASX bank share prices.

Take Westpac Banking Corp (ASX: WBC). Its share price started the year just a touch over $24 a share. But by 23 March, Westpac shares hit a low of just $13.47. That was the lowest share price the ASX’s oldest bank had seen since 2003 (yes, even lower than the depths of the global financial crises).

Commonwealth Bank of Australia (ASX: CBA) faired the best amongst the ASX banks. But even the yellow diamond dropped more than 40% in value between 14 February and 23 March.

One of the major catalysts for these drops was likely the sudden inability for the banks to fork our their famous dividends. Not that this was entirely the banks’ fault. The financial regulator APRA (Australian Prudential Regulatory Authority) actually told the banks to keep their dividends at a minimum shortly after the pandemic hit, and only eased these restrictions recently.

Will 2021 be an ASX banking bonanza?

But that was 2020. So what does 2021 hold? Will we be getting back to the days of a 6% fully franked yield anytime soon?

One banking analyst thinks we might get half-way there at least. Reporting from the Australian Financial Review (AFR) this week quotes bank analyst Brian Johnson (not the AC/DC singer, if you were wondering) on the matter.

Mr Johnson is tipping that the ASX banks will return to paying out 60-70% of their earnings as dividends in at least the first half of 2021. That’s not quite at the 80-90% ratios we were seeing in 2019, but it’s a lot more generous than the 50% cap that APRA imposed for most of 2020.

Johnson also says that what Commonwealth Bank (the first banking cab off the rank) announces as its interim dividend next month will “set a standard across the industry”. He also states that the banks might even contemplate share buybacks and other “capital initiatives” in the second half of the year. That would further return cash to investor pockets, as share buybacks increase earnings per share (EPS) for existing shareholders.

Not out of the woods yet

However, Johnson also points out that CBA’s earnings results will be closely watched for another reason – to assess the economic damage from the coronavirus pandemic. Johnson notes that JobKeeper has “injected a massive amount of money into the economy, and unemployment numbers look better than people thought they would”, which has prompted “massive deposit growth so capital ratios look so much better, and the banks have strengthened their balance sheet provisioning”.

 However, he also states that credit growth has been “extremely anaemic” and investors will be looking to CBA’s numbers to make sure “that the bad debts that the banks have incurred as a result of the pandemic are much smaller than feared even a few months ago”.

Still, investors will be buoyed by Mr Johnson’s comments. No doubt many will be hoping that CBA’s current trailing yield of 3.45% and Westpac’s 1.47% will see some much-welcomed appreciation this year.

More reading

• This ASX 200 stock is tipped to lift dividends by 87% this year
• Why this broker likes ANZ (ASX:ANZ), NAB (ASX:NAB), and Westpac (ASX:WBC)
• Does Xinja’s downfall mean neobanks are dead?
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• Loan deferrals down, big four ASX banks up?

Motley Fool contributor Sebastian Bowen 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 morning trade the Objective Corporation Limited (ASX: OCL) share price has been on fire.

At the time of writing, the information technology software and services provider’s shares are up 11% to a record high of $14.49

Why is the Objective share price rocketing higher?

The catalyst for this strong gain has been the release of its first half guidance this morning.

According to the release, based on unaudited management accounts, Objective is expecting to report a 40% increase in revenue to $46.5 million for the half.

And thanks to margin expansion, the company is guiding to a 74% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $11.8 million.

Also growing strongly during the half was its annual recurring revenue (ARR). The company’s ARR grew 30% year on year to $70.1 million. Positively, upfront licence fees have continued to decline as a percentage of revenue and now represent only 3.6% of its total revenues. This is down from 7.4% a year earlier.

At the end of the period, Objective had a cash balance of $27.7 million. This takes into account the $18.4 million the company paid to acquire Itree and its dividend payments of $6.6 million. In addition to this, the company made an $11.1 million investment in research and development during the half, up 45% from $7.7 million a year earlier.

Management commentary.

Objective’s CEO, Tony Walls, revealed that the company has been battling tough trading conditions because of the pandemic.

He commented: “As expected, operating conditions in the first half of the 2021 financial year have been challenging for all of us due to the impacts of COVID-19. At Objective, our priority has been in supporting our employees and customers around the globe.”

“Despite these challenges, we have great confidence in our future and we are well placed to transition to the new normal that the world will adapt to in due course. Objective’s suite of products will be critical in assisting our customers to do the same. With this conviction, we have continued to invest in our team to capture the opportunities that lie ahead,” he added.

More reading

• Objective (ASX:OCL) share price continues its rise in 2021 after doubling last year
• The top 5 performing ASX SaaS shares of 2020

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

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The Integrated Research Limited (ASX: IRI) share price is dropping lower on Friday morning.

At the time of writing, the user experience and performance management solutions provider’s shares are down 2.5% to $2.42

Why is the Integrated Research share price dropping lower?

Investors have been selling the company’s shares this morning following the release of an update on its guidance for the first half of FY 2021.

At the end of December, the Integrated Research share price crashed lower after it revealed that its trading performance had been below expectations due to a continuation of customers deferring purchasing decisions.

In light of this, it provided guidance for half year revenue in the range of $34 million to $37 million and profit after tax in the range of breakeven to $2 million. This compared to revenue of $53.2 million and profit of $11.8 million in the prior corresponding period.

This morning the company advised that it is in the early stages of preparing its interim financial results. Based on internal management accounts and subject to audit review, it anticipates both revenue and profit after tax to be at the lower end of its guidance range.

It notes that the AUD/USD exchange rate strengthened by another cent on the last day of the year, resulting in further unrealised exchange losses.

This means that Integrated Research is expecting revenue of ~$34 million and no profits for the half. This represents a 36% and 100% decline, respectively, on the prior corresponding period.

At the end of December, the company’s cash balance (net of debt) stood at $1.7 million. This is down from $4.7 million at the end of June.

New product launch.

Management also advised that the company has expanded its Collaborate product line with the release of new cloud solutions for Microsoft Teams and Zoom.

A further update on its cloud-based solutions will be provided at the formal half year results announcement scheduled for 18 February 2021.

More reading

• ASX 200 drops lower
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• Why is the Integrated Research (ASX:IRI) share price sliding 6%?

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

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The Michael Hill International Limited (ASX: MHJ) share price is in focus today after a trading update from the jewellery group.

Why is the Michael Hill share price on watch?

Michael Hill provided an update on its second quarter trading performance for the period ended 27 December 2020.

The Aussie jeweller expects to see group earnings before interest and tax (EBIT) growth of 30–40% for the first half of the year (1H 2021). 

EBIT is forecast to be $56 million to $60 million against comparable EBIT of $41 million to $45 million in 1H 2020.

The group experienced strong same store sales growth across all markets and channels. That saw same store sales climb 6.3% for the half.

Digital sales were up 102% for the half with increased sales and margins. Digital channels now represent 5.8% of total sales for the group compared to 2.8% in 1H 2020.

The Michael Hill share price is one to watch in early trade following this morning’s update.

Michael Hill also reported continued growth of its branded collections, which now represent 38.4% of all product sales. 

The Aussie jeweller is now in a strong cash position thanks to “diligent management” of its expenditure, working capital and inventory levels.

However, coronavirus restrictions continue to weigh on international sales channels. The group reported 46 stores in its Canadian segment that closed over November and December.

The Michael Hill share price remains down 4.2% over the last 12 months but has rocketed 195.7% higher since 8 April 2020.

The Aussie jeweller also provided an update on its deferred dividend debt. After conserving cash in March 2020 by deferring payment, Michael Hill will now be paid to those eligible shareholders.

Foolish takeaway

The Michael Hill share price is one to watch in early trade after its second quarter trading update.

The company currently trades with a market capitalisation of $263.8 million with a dividend yield of 3.8% and a price to earnings (P/E) ratio of 86.2.

More reading

• Could ASX retail shares be the best ASX shares to own right now?

Motley Fool contributor Ken Hall 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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