On Tuesday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a disappointing decline. The benchmark index sank 0.85% to 6,821.2 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 futures pointing higher

The Australian share market is expected to rebound slightly on Wednesday. According to the latest SPI futures, the benchmark index is poised to open the day 0.2% or 13 points higher. This follows a mixed night of trade on Wall Street, which in late trade sees the Dow Jones up 0.1%, the S&P 500 trading flat, and the Nasdaq pushing 0.2% higher.

CBA half year update

Australia’s largest bank, Commonwealth Bank of Australia (ASX: CBA), will be on watch today when it hands in its half year report. According to a note out of Goldman Sachs, its analysts are expecting the bank to report cash earnings from continuing operations (pre-one offs) of $3,692 million and an interim dividend of $1.25 per share.

Oil prices continue to rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the rise after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 0.8% to US$58.44 a barrel and the Brent crude oil price has pushed 1% higher to US$61.16 a barrel. Oil prices hit 13-month highs overnight.

Computershare results

All eyes will be on the Computershare Ltd (ASX: CPU) share price today following the after hours release of its half year results. Computershare reported a 3.2% decline in management revenue to $1.1 billion and a 52.4% tumble in margin income to $55.2 million. This led to the company’s management earnings per share falling 24.8% to 21.8 cents per share. As poor as this was, it was ahead of its guidance. Record low interest rates impacted margin income.

Gold price edges higher

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) will be on watch after the gold price edged higher again. According to CNBC, the spot gold price is up 0.1% to US$1,836.30 an ounce. This was driven by US dollar weakness and stimulus hopes.

More reading

• ASX 200 drops 0.9%, Crown not suitable for Sydney casino, Macquarie rises
• CBA, Westpac, ANZ adopt same tech as Bitcoin
• Motley Fool CIO, Scott Phillips, talks to Sky News: Tesla’s bitcoin bandwagon, and ASX dividends back on menu
• Countdown to launch of new ASX indexes for ESG boom
• ASX 200 down 0.4%: Macquarie impresses, Challenger disappoints, & Suncorp rises

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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If you’re looking to add some diversification to your portfolio, then you might want to look at exchange traded funds (ETFs).

ETFs can be a great way to diversify a portfolio because they give investors access to a large and diverse number of different shares that you wouldn’t ordinarily have access to.

Given the large number of ETFs to choose from, it can be difficult to decide which ones to buy.

In order to narrow things down for you, I have picked out two ETFs that are popular with investors and could be worth considering. They are summarised below:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF is one for investors to look closely at. This ETF aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector.

Given the increasing threat of cyber attacks, demand for cybersecurity has been growing quickly. This demand is only expected to rise over the coming years as attacks become more sophisticated.

Included in the fund are the likes of Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

In respect to Cloudflare, at the last count it was trusted by over 26 million internet properties for protection. Cloudflare provides a scalable, easy-to-use, unified control plane to deliver security, performance, and reliability for on-premises, hybrid, cloud, and SaaS applications.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for ASX investors to look at is the Vanguard MSCI Index International Shares ETF. This fund gives investors exposure to some of the world’s biggest and brightest companies.

Vanguard feels the ETF is a good option for investors for a number of reasons. One those is its low-cost access to a diversified range of shares that allow investors to take part in the long-term growth potential of international economies. 

The fund is invested in a sizeable 1,532 listed companies. These include companies such as as Apple, Johnson & Johnson, NVIDIA, Pfizer, and Tesla.

More reading

• Countdown to launch of new ASX indexes for ESG boom
• 2 quality ASX shares to buy for the long-term
• 2 fantastic ETFs to buy for strong potential returns
• Looking for diversification? Try this ASX ETF
• 2 great ETFs to buy for growth potential

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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) is home to 200 of the largest companies on the Australian share market.

While not all of these shares are necessarily in the buy zone, a number of them jump out as potential options.

Two that come highly rated are listed below. Here’s why they could be in the buy zone:

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure is one of the world’s leading gaming technology companies, specialising in both poker machines and mobile games.

Aristocrat’s poker machines are some of the most sought after in the world and have been winning market share globally consistently in recent years. While the pandemic has hit this segment hard because of casino closures and social distancing initiatives, it looks well-placed for growth once the crisis passes.

In the meantime, its digital business continues to perform strongly and generate significant recurring revenues. And with new releases strengthening its offering, the segment also looks well-positioned for growth.

Analysts at Citi are positive on its long term prospects. They note that 2020 has been a difficult year, but believe the company will bounce back strongly. Citi has a buy rating and $40.60 price target on its shares.

CSL Limited (ASX: CSL)

Another ASX 200 share to look at is this biotherapeutics giant. CSL appears to be in a position for growth over the long term due to increasing demand for immunoglobulins and influenza vaccines, its expansive (and growing) plasma collection network, and its lucrative research and development pipeline.

The latter has some very promising therapies under development and is being supported by a material investment each year. In fact, in FY 2021, CSL will be investing approximately ~US$1 billion into its research and development activities. This is on top of a US$922 million investment in FY 2020.

One broker that is positive on the company’s prospects is Credit Suisse. It currently has an outperform rating and $325.00 price target on CSL’s shares.

More reading

• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal
• 2 strong blue chip ASX shares rated as buys by brokers
• 3 compelling ASX shares to buy in February
• These 3 ASX stocks are the latest “buy” ideas from top brokers
• 2 compelling ASX 200 blue chip shares to buy in February

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. 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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I was going to write about something else today.

Then came the news that Tesla Inc (NASDAQ: TSLA) had bought $2 billion worth of Bitcoin.

The price of Bitcoin surged. 

The Tesla share price rose.

The internet chat rooms and social networks melted down.

I was asked to speak about it on Sky News and on Triple M Perth.

I was asked about it on social media.

… and so I’m writing about Bitcoin.

Truth be told, it’s a double-edged sword. 

Bitcoin is truly fascinating, as a phenomenon.

It is emblematic – both of itself, but also because of how it’s been embraced – of so much of our modern world.

It is the first truly widespread digital, well, thing.

And I use that word advisedly because we’re already getting into controversial territory.

What is Bitcoin, anyway?

Is it a currency? Sort of.

An asset, like digital gold? Sort of.

Is it both? Yes. And no. Because it depends on who you ask.

And that, at its core, is the challenge of Bitcoin.

It is a digital thing, but it’s almost as much a belief system for many of those who count themselves among the Bitcoin faithful.

There are anarchists who see it as a way to avoid government.

There are libertarians with much the same view.

There are those who see its features – portability, security, opacity and distributed record-keeping, among others – as, well, just better than what we have now.

The underlying technology is, of course, the thing called the ‘blockchain’ – an accounting ledger, of sorts, that is both distributed and replicated across the internet, meaning the record of who owns what should be much safer, because multiple systems need to confirm each transaction.

So there are the people who say ‘I get blockchain, but not Bitcoin itself’, and just as many people who say you can’t have one without the other.

And then, there are the speculators: the people who remind us that there can never be more than a given number of Bitcoins, so if it does become truly and permanently mainstream, the price will continue to go up as more and more of us want to buy Bitcoins to do our business.

Which brings us back to Tesla.

Truly, are there two larger, more prominent lightning rods than Tesla and Bitcoin?

Together, they make for the stuff of a headline writer’s dream.

Which is as it may be, but this isn’t Elon Musk sending a tweet into the ether.

He’s ponied up $2 billion (well, Tesla has) to buy Bitcoin. And the company has said it plans to allow people to buy Tesla cars with same.

The company likely knew people would find and report on the news, but it didn’t go out of its way to make a song and dance about it. Deep in a regulatory filing, Tesla noted that it bought the Bitcoin for “more flexibility to further diversify and maximise returns on our cash” and said it expects to “begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt”.

Love him or loathe him, though, Musk is no dummy.

Sure, it could be a publicity stunt (if it is, it worked!). 

And sure, it could be a Musk misfire, in the fullness of time.

But betting against Musk has rarely worked, at least over the long term.

It’s why many are painting the news as Bitcoin’s arrival on the main stage, especially coming relatively soon after PayPal announced it would start accepting Bitcoin on its platform.

The problem, for the investor, is this: None of the above helps us work out how much Bitcoin is actually worth.

If popularity was all that mattered, the US Dollar should have risen astronomically over the last 150 years as it became the de facto global currency.

(Yes, yes, the Bitcoin faithful will point to inflation and money printing. And you know what… they might even be right.)

But here’s the thing: I still am unconvinced that Bitcoin has any actual underlying value, even if it becomes a currency.

After all, a $20 note isn’t really worth $20 in any material way. Instead, it gives us a way to swap one hour of labour for one pizza.

In the US, that swap might be worth $10, given lower wages and lower prices.

The pizza isn’t objectively worth either $10 or $20 – the market has just decided to use a given banknote to equate the work and the food.

Maybe, after all this, even if we do end up using Bitcoin, that’s all the value it has… as a medium of exchange.

Or maybe not.

(Full disclosure: I bought $100 worth of Bitcoin a few years back just to have some ‘skin in the game’ and to help me follow the story. I still have those fractional Bitcoins.)

If there’s one thing I want you to take from this, it’s that I don’t know, you don’t know and they don’t know either.

Is Bitcoin the personal computer or the laserdisc of commerce? 

To use an airline analogy,  if you’d have placed a bet in 1970, based on the exponential growth of air travel over the following 50 years, you probably would have gone broke 3 or 4 times over.

Not because your insight was wrong, but because airlines weren’t able to make a buck from it.

Then again,… airports made a small fortune.

See, even if the true believers are right, is Bitcoin the airline? Or is it the airport?

There’s no doubt that recent news makes it more likely that Bitcoin hangs around. 

But that’s not enough. As I tweeted this morning:

A reminder:

Sometimes the evangelists are right.

Other times, they’re blinded by their beliefs and he really is just a very naughty boy.

The problem is that telling the difference, in advance, is bloody tough.

Don’t drink the Kool-Aid, but don’t pull down the shutters, either.

Bottom line: It’s okay not to know.

It’s okay to leave things like Bitcoin in the too hard basket.

After all, you don’t bet on every horse in every race, just because you can.

For now, at least, I’m watching this one from the sidelines.

Fool on!

More reading

• Motley Fool CIO, Scott Phillips, talks to Sky News: Tesla’s bitcoin bandwagon, and ASX dividends back on menu
• How CEP Energy ‘world’s largest battery’ will shake up the energy market
• Bitcoin skyrockets to a new all-time high after Tesla invests $1.5 billion in the popular cryptocurrency
• Should short selling be banned?
• Tesla finally recalls 134,951 vehicles for defective touchscreens

Scott Phillips 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 Tesla. 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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There are some interesting reasons why the Temple & Webster Group Ltd (ASX: TPW) share price could be a buy right now.

What is Temple & Webster?

Temple & Webster describes itself as Australia’s online retailer of furniture and homewares.

It has over 200,000 products on sale from hundreds of suppliers. The business runs a drop shipping model where products are sent directly to customers by suppliers, enabling faster delivery times and reducing the need to hold inventory, allowing for a larger product range.

The drop ship range of products is complemented by Temple & Webster’s private label range which is sourced directly from overseas suppliers.

Why the Temple & Webster share price could be interesting

1: Fast revenue growth

Temple & Webster continues to generate fast revenue growth, particularly since the COVID-19 pandemic came along.

In FY19 the company generated revenue growth of 41% to $101.6 million. In FY20 the online business made $176.3 million revenue, up 74%. In the FY21 half-year result it saw revenue climb by 118% to $161.6 million.

The recent half-year result included trade and commercial division revenue growth of 89% year on year. Private label sales has increased as a percentage of total sales, up to 25% of total sales, an increase from 18% in the first half of FY20.

Management revealed that the second half has started strongly with January’s revenue growth being more than 100%.

2: Increased customer demand and growing market share

The number of customers increased by 102% over the period to 687,000.

Temple & Webster’s CEO Mark Coulter explained the benefits of gaining market share during the most-affected COVID-19 months: “The NAB online sales index suggests our category grew around 57% during the months of April to July, while we grew around 150% for the same period. We believe this is due to the increasing benefits of scale as we get larger. We are forging closer relationships with our suppliers as we become a more significant part of their business which allows us to obtain stock security, better terms and exclusive product ranges. We are also making larger investments in areas such as technology and data, brand awareness and our private label products; and we can produce more content by having more creative resources. In effect, the bigger we get, the better and strong our customer proposition becomes, which is a virtuous cycle.”

The e-commerce business also said that the amount of dollars per active customer increased by 6% to $401 due to higher repeat purchasing.

The company’s customer satisfaction score, the NPS, has seen consistent year on year growth thanks to increase in the improvements in quality, range and service.

3: Rising profit margins

Whilst the FY21 half-year revenue went up by 118%, the earnings before interest, tax, depreciation and amortisation (EBITDA) surged by 556% to $14.8 million.

Temple & Webster explained that a large part of its margin improvement came about from the growth of private label products.

Fixed costs as a percentage of revenue decreased to 7.5%, down from 11.6% last year.

The gross profit margin increased from 44.2% to 45.5% in the result and the EBITDA margin grew from 3.1% to 9.2%.

Valuation

The Temple & Webster share price has fallen by almost 20% since 25 January 2021. According to Commsec, it’s now trading at 39x FY23’s estimated earnings.

In terms of the outlook, the ASX share’s leadership think there are still strong tailwinds including: the ongoing adoption of online shopping due to structural and demographic shifts, an acceleration of these trends due to COVID-19, an increase in discretionary income due to travel restrictions and the continued recovery of the housing market and unemployment levels.

More reading

• ASX retail shares show strong signs of resurgence 
• Here’s a bargain ASX share in a sea of expensive stocks
• 3 great ASX tech shares to buy
• How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?
• ASX stock of the day: Temple & Webster (ASX:TPW) goes from strength to strength

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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The Noxopharm Ltd (ASX: NOX) share price gained more than 21% today, surging in a last-minute buying frenzy to close at 83 cents.

Noxopharm is an Australian clinical-stage drug development company. Its Veyonda drug is being designed to support cancer patients undertaking chemotherapy or radiotherapy treatment.

Noxopharm share price rockets upon survival benefit results

The company announced today that it would present its latest research findings at the American Society of Clinical Oncology (ASCO) Genitourinary Cancers Symposium later this week. 

The research pertains to extending the lives of patients who have late-stage prostate cancer. 

Noxopharm’s LuPIN study enrolled a total of 56 patients with metastatic castration-resistant prostate cancer. Patients were treated with a combination of Veyonda with ¹⁷⁷Lu-PSMA-617, an experimental radiopharmaceutical.

The goal of the combined (LuPIN) treatment was to slow or block tumour progression so that patients can live a better quality of life, and their survival is extended in a well-tolerated way.

The median overall survival (mOS) for the 56 participants in the LuPIN study was 19.7 months, an increase on the 17.1 months reported 12 months ago.

This survival benefit exceeds that reported for any current standard of care treatment, including one acquired by Pfizer Inc (NYSE: PFE) in 2016 for US$14 billion.

The LuPIN data reinforces Noxpharma’s belief that a combination of Veyonda and ¹⁷⁷lutetium-PSMA-617 represents a “long-awaited forward leap” in cancer treatment.

Words from the CEO

Commenting on the company’s latest progress, CEO Dr Graham Kelly said:

Today’s clinical data continues to cement the view that Veyonda is on track to become a major new immunotherapy oncology drug of medical and commercial significance.

The DARRT program has already suggested this and the LuPIN program now confirms it. All of which augurs well for our upcoming IONIC program. Collectively, these three programs highlight the diversity of use and potential value of Veyonda.

The Noxopharm share price has gained more than 41% year-to-date and is up more than 250% over the past 12 months.

More reading

• Why the Noxopharm (ASX:NOX) share price is bouncing up today

Motley Fool contributor Gretchen Kennedy 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 S&P/ASX 200 Index (ASX: XJO) fell by 0.9% today to 6,821 points.

Here are some of the highlights from today:

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price was the best performer in the ASX 200, rising by 6.6% today.

Macquarie said that trading conditions have improved across the group in the quarter ending 31 December 2020.

The investment bank said that its annuity-style businesses called Macquarie Asset Management (MAM) and banking and financial services (BFS) experienced a profit increased in the third quarter compared to the prior corresponding period. Net profit for the nine months from these businesses was broadly in line with the prior corresponding period due to base and performance fees being flat, partially offset by BFS margin pressure, increased credit impairment charges and higher costs to support clients through COVID-19.

The ASX 200 business said that its market-facing businesses of commodities and global markets (CGM) and Macquarie capital experienced a significant increase in net profit in the third quarter. However, FY21 year to date profit was broadly in line with FY20 year to date thanks to stronger activity across most CGM businesses, offset by lower fee revenue and principal income in Macquarie Capital.

Macquarie said that it has $8.1 billion of surplus capital and that it’s expecting the FY21 result to be slightly down on the FY20 result.

The Macquarie CEO, Ms Wikramanayake, said: “Macquarie remains well-positioned to deliver superior performance in the medium term due to our deep expertise in major markets, strength in business and geographic diversity and ability to adapt our portfolio mix to changing market conditions, an ongoing program to identify cost savings initiatives and efficiency, our strong and conservative balance sheet and a proven risk management framework and culture.”

Crown Resorts Ltd (ASX: CWN)

The Crown share price will be under scrutiny this week after the casino business was ruled to be not suitable to hold the licence to run the Barangaroo casino unless there are several changes, a NSW casino inquiry has found, according to reporting by media such as the Australian Financial Review.

Some of the recommendations include James Packer selling his shareholding to 10% (or less) of the company, down from 37%. Another suggestion is board changes.

Commissioner Patricia Bergin wrote: “Any applicant for a casino licence with the attributes of Crown’s stark realities of facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction and pursuing commercial relationships with individuals with connections to triads and organised crime groups would not be confident of a positive outcome.”

Challenger Ltd (ASX: CGF)

The Challenger share price fell by almost 15% today, it was the worst performer in the ASX 200 after releasing its half-year result.

Challenger that its assets under management (AUM) increased over six months by 13% to $96.1 billion. Year on year, annuity sales increased by 12% to $2.2 billion and total life sales rose 10% to $3.4 billion.

Challenger’s normalised net profit before tax of $196 million was down by 30% compared to the prior corresponding period. Normalised earnings per share (EPS) was down by 35%.

The ASX 200 company said that it was on track to achieve its normalised net profit before tax guidance which is in the range of $390 million to $440 million. Challenger said that the bank acquisition will drive medium-term growth.

The board of Challenger decided to declare an interim dividend of 9.5 cents per share.

More reading

• Crown (ASX:CWN) shares on watch after being found unsuitable to operate Sydney casino
• Countdown to launch of new ASX indexes for ESG boom
• Why Challenger, DEXUS, Emeco, & Zip shares are tumbling lower
• ASX 200 down 0.4%: Macquarie impresses, Challenger disappoints, & Suncorp rises
• Why Douugh, Macquarie, Starpharma, & Suncorp shares are storming higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Macquarie Group Limited. The Motley Fool Australia has recommended Crown Resorts 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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The Piedmont Lithium Ltd (ASX: PLL) share price surged higher today following the addition of a seasoned minerals executive to its board.

At market close, shares in the Australian lithium miner finished the day at 74.5 cents, up 12%.

New appointment

The Piedmont share price moved higher today after the company’s appointment of experienced mining executive Todd Hannigan to its leadership team. His new role as non-executive director took immediate effect from yesterday.

Piedmont noted that Mr Hannigan would bring a wealth of experience to the company with industry knowledge and corporate relationships. His focus on battery manufacturing and advanced materials is expected to help progress Piedmont’s Lithium Project in the United States.

The company noted that Mr Hannigan served as CEO for Aston Resources Limited from 2010 to 2011. During this period, he led Aston Resources from a small private company to one of the largest-listed coal companies on the ASX. The company raised roughly $2 billion in equity funding to acquire and develop the Maules Creek coal project. At the end of 2011, Aston merged with fellow mid-tier miner Whitehaven Coal Ltd (ASX: WHC) in a $5.1 billion deal.

Most recently, in January 2021, Mr Hannigan took up the role of non-executive chair of Tao Commodities Limited. The minerals exploration company is currently working on bringing its Titan Project – a rare earth, titanium and zircon rich project in the United States – online within the coming years.

Mr Hannigan graduated from the University of Queensland, holding a Bachelor of Engineering (Mining) with Honours. He also has an MBA from one of the world’s leading and largest graduate business schools, INSEAD.

What did management say?

Commenting on the appointment, Piedmont independent chair Jeff Armstrong said:

Todd is an outstanding addition to our board and will add valuable leadership and experience. Todd is a large shareholder in Piedmont which is a testament to the quality of our Piedmont Lithium Project.

Based in Victoria, Todd will serve as an independent director and provide support for our continued ASX listing (via Chess Depositary Interests or “CDI’s”) following our proposed re-domiciliation from Australia to the United States this year.

How has the Piedmont share price performed?

The Piedmont share price has rocketed more than 500% in the 12 months, reflecting positive investor sentiment in the lithium industry.

The company’s share hit a multi-year low of 6.2 cents in March, before surging to a high of 82.5 cents.

Based on the current share price, Piedmont’s market capitalisation now stands at $1 billion.

More reading

• Fossil fuels vs renewables: What’s ahead for ASX energy shares?
• ASX coal stocks increasingly isolated with rise of start-ups like MGA Thermal
• The Piedmont Lithium (ASX:PLL) share price just rocketed 32% to a record high
• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
• These were the worst performing ASX 200 shares last week

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 Crown Resorts Ltd (ASX: CWN) share price will be one to watch when it returns from its trading halt.

This morning the casino and resorts operator requested the halt ahead of the release of the Commissioner’s report in relation to an inquiry into the suitability of Crown Resorts holding the licence for Sydney’s Barangaroo casino.

What has happened?

This afternoon that final report was released and reveals that Commissioner Patricia Bergin has deemed Crown Resorts to be unsuitable to operate its new Sydney casino. This follows a public inquiry which uncovered allegations of money laundering.

According to the ABC, the final report states that Crown Resorts needs to make sweeping cultural changes if it wants to be considered a suitable operator in the future.

Though, it is worth noting that this final report remains a recommendation that requires final approval by the Independent Liquor and Gaming Authority (ILGA). But that is expected to be a formality at this point.

What was said?

According to the AFR, Commissioner Bergin labelled the company as arrogant and “quite unsuitable to hold a casino licence in New South Wales.”

She said: “Any applicant for a casino licence with the attributes of Crown’s stark realities of facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction and pursuing commercial relationships with individuals with connections to triads and organised crime groups would not be confident of a positive outcome.”

“It is obvious that such attributes would render an applicant quite unsuitable to hold a casino licence in New South Wales.”

“These facts and the stark realities expressed so baldly may also suggest that it is obvious that the licensee is not suitable to continue to give effect to the Barangaroo Licence and that Crown is not suitable to be a close associate of the licensee,” she added.

All eyes will be on the Crown share price when it returns to trade after this major setback. This could possibly be as soon as Wednesday morning.

More reading

• ASX 200 rises, Worley dumped, Mesoblast rises
• Why the Crown (ASX:CWN) share price could be hit harder than others today
• 5 things to watch on the ASX 200 next week
• Why Cleanaway, Crown, Pro Medicus, & Vulcan shares are tumbling lower
• Broker lists the best ASX stocks to own for an up to 30% gain in 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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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The AD1 Holdings Ltd (ASX: AD1) share price has been flying high today after the company announced a milestone contract award.

The AD1 share price rocketed to an intraday high of 6.8 cents, up 25%, in opening trade but has retreated through the day to 5.7 cents, up 9.62%.

A quick take on AD1

Based in Melbourne, AD1 provides customer-branded recruitment technology platforms, utility software billing services and management platforms.

Its ‘Acquire solutions’ is an energy industry sales intelligence tool that allows a company to manage its sales database.

‘Zone solutions’ is a customer portal that collates information to provide a range of reporting metrics for customers. The platform also offers customer-self service options, negating the need to connect to a company representative.

What did AD1 announce?

In today’s release, AD1 advised its utility division has signed a 5-year agreement with Australian energy retailer, Locality Planning Energy (LPE).

The new deal will expand AD1’s current scope of work for LPE. This will include energy sales intelligence (Acquire) and customer portal (Zone) solutions for LPE’s existing customers. In turn, the new offering will enable improved cost efficiencies by enhancing the customer experience using sophisticated technology.

The expanded agreement builds on the original contract signed in May 2018. AD1 previously delivered billing & operations Software-as-a-Service (SaaS) solution and related managed services for LPE’s on-market customers.

It’s expected that the new deal will generate revenue of about $10 million for AD1 over the 5-year term. This is a 200% revenue increase on the previous contract signed.

Management commentary

AD1 CEO Prashant Chandra welcomed the new agreement, saying:

This is a landmark deal for the company and we are thrilled to extend and expand our partnership with LPE for a further five years.

Our utilities SaaS solutions assist energy retailers enhance their value offering and achieve their growth objectives in a very cost-effective manner. The five-year expansion of services is a validation of the value in our commercial offering.

Mr Chandra said additional revenues under the deal would start post-implementation, which was anticipated to be completed during the July-September 2021 quarter. It would increase the company’s recurring SaaS and managed services revenue by approximately 50% compared to FY20, he said.

AD1 share price snapshot

The AD1 share price has surged 510% higher since early June last year. At the current share price, AD1 has a market capitalisation of $34 million.

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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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