The Qube Holdings Ltd (ASX: QUB) share price is inching higher at market open, after the company announced an update on the much anticipated sale of its Moorebank Logistics Park (MLP) project.

The Qube share price opened at $3.00, up by 0.33%.

What was the update

In a short release to the market, the logistics company advised that its negotiation with Logos Property Group is progressing constructively with the due diligence process substantially complete.

The company says significant progress was made on agreeing the key commercial issues for the 100% sale of its warehousing assets to Logos, while still retaining interest in the terminals assets.

The company says that Logos continues to “demonstrate a clear appreciation of the high quality and significant strategic value of the MLP.”

Qube says that both companies will continue to finalise the outstanding commercial issues in the near term, but has warned that there is no certainty that a transaction will occur.

What’s the Moorebank Logistics Park

MLB is Australia’s largest freight infrastructure project, and will link Port Botany direct to rail terminals and warehousing. It sits on a 243-hectare site just 35km from Sydney’s central business district.

The sale of this project has been on the cards since August, and a price tag of $2 billion has been mentioned.

This comes as Qube faces problems on its balance sheet, after reporting a 55% fall in annual profit to $87.5 million. Analysts have said that if Qube can’t offload Moorebank, it will be forced to recapitalise.

In September, Logos emerged as a contender to buy the asset, and the companies agreed at the time to enter into an exclusive negotiation period.

About the Qube share price

Qube is Australia’s largest provider of import and export logistics services. The Aussie company operates at more than 125 locations across Australia, New Zealand, Papua New Guinea and South East Asia.

The coronavirus pandemic has disrupted international commerce and logistics routes this year. The Qube share price is lower by 8% lower in 2020, after plummeting by 50% in May.

At today’s share price, Qube commands a market cap of $5.7 billion.

More reading

• Iron ore prices poised to hit US$180 next month: Westpac
• Origin (ASX:ORG) share price on watch today after this announcement
• 3 ASX shares for growth, income, and value investors
• BHP (ASX:BHP) share price on watch after Samarco update
• Robinhood phenomenon lures Gen Z and Millennial investors, but will it continue?

Motley Fool contributor Eddy Sunarto 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 Chinese government’s attempt to cool the iron ore price has not stopped some experts from predicting another surge as early as next month.

Westpac Banking Corp (ASX: WBC) believes the stars are aligned for the steel-making mineral to rally close to 20% in January to circa US$180 a tonne, reported the Australian Financial Review.

That should keep the BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) share price supported in the near-term, even as the iron ore price lost ground for the second day.

Iron ore price weakness is temporary

Iron ore futures fell 1.9% in Singapore to US$161.10 a tonne, while the price on the Dalian exchange tumbled 5.8% to 1,026.50 yuan (US$156.95) a tonne.

The commodity has fallen 11% in just two days in Dalian after Chinese regulators curbed some trading accounts to stop speculators from trading.

However, Westpac’s analysts Justin Smirk thinks demand-supply fundamentals are enough to push the commodity higher.

Diverse tailwinds supporting the commodity

He noted that iron ore inventories at Chinese ports are stuck at cyclical lows. This is despite rising steel production and strong iron ore imports.

Further, the import price of the ore is trading at a significant premium to the locally produced commodity. This signals how strong demand is for imported ore.

“The margins for [Chinese] steel mills have been supported by rising steel prices which is allowing for the ongoing bidding up of input costs,” the AFR quoted him as saying.

“With steel prices continuing to lift further through December, and steel inventories (at both traders and steel mills) rising only modestly, it appears that strong steel sales will continue to be supportive of high iron ore prices at least into the first half of 2021.”

Growing demand, weak supply

In the year to November, Chinese steel production climbed 9%, according to Westpac. Most of the growth comes in more recent months as China emerged from the COVID‐19 disaster.

The increase compares to the 8% growth in steel output for 2019.

In contrast, supply of the ore has not kept up with demand. Major Brazilian ore producer Vale SA downgraded its output guidance for 2020 and 2021 as COVID hampered its operations.

Brazil and Australia are also entering into the “wet season” and further disruptions to shipments are likely.

While most analysts do not think the commodity can hold at recent highs, the iron ore price looks well placed to spike higher in the near-term.

It’s not only the major ASX iron ore miners that stand to benefit. The Deterra Royalties Ltd (ASX: DRR) share price and Mineral Resources Limited (ASX: MIN) share price will also find favour with investors.

More reading

• BHP (ASX:BHP) share price on watch after Samarco update
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 ends 0.7% higher
• Are these the 2 best ASX shares to buy right now?
• 2 ASX dividend shares with fully franked yields over 7% today

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Deterra Royalties Limited, and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

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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Origin Energy Ltd (ASX: ORG) has announced that it will invest an additional £36 million (A$65 million) in Octopus Energy to maintain its 20% equity stake.

This follows a partnership between Octopus and Tokyo Gas that will see the launch of Octopus into the Japanese market.

The Origin share price will be on watch when the ASX market opens this morning, after closing at $4.79 on Wednesday.

What’s the deal?

Under the agreements, leading Japanese utility Tokyo Gas will take a 9.7% equity share in Octopus for a consideration of US$200 million.

Octopus and Tokyo Gas will also establish a new retailer, TG Octopus Energy, that will pursue growth in Japan, one of the world’s biggest  energy markets comprising 83 million electricity customers and 25 million gas customers.

Origin says that it’s lifting its investment in Octopus to maintain 20% equity share because the company has seen material value since its initial investment in May this year.

Since May, Octopus has grown UK customer accounts by approximately 300,000 to 1.8 million, and launched in the United States and German markets.

Today’s investment in Octopus is on the same commercial terms as Tokyo Gas, and will be paid in three tranches based on agreed milestones, with 75% expected in FY21 and the remainder in FY22 and FY23.

Commenting on the investment, Origin chief executive officer, Frank Calabria said:

We are lifting our investment in Octopus to maintain our 20 per cent equity share because we see strong potential in our strategic partnership, underpinned by our confidence in Octopus’ operating model, market-leading technology and management team.

We have already reached Origin’s target to have 50,000 customers on the platform by the end of 2020, and we will progressively move more customers to the platform.

Why did Origin invest in Octopus

In May 2020, Origin entered a strategic partnership with UK-based Octopus Energy, taking a 20% equity share for approximately $500 million.

The deal included obtaining a perpetual license to Octopus’  flagship technology platform, Kraken, in Australia.

Origin said that it would deploy the innovative Kraken platform developed by Octopus, which would streamline and automate many interactions between Origin and its electricity customers.

At the time, the company said that the investment would pay for itself relatively quickly, saying the shift to the Kraken platform will deliver immediate savings of $70-$80 million in 2022, growing to as much as $150 million annually within the next five years.

How has the Origin Energy share price performed in 2020

The Origin Energy share price has fallen by more than 50% this year as the coronavirus pandemic took a toll on its export business.

The share price had a 52-week high of $8.82 reached in January, and a low of $3.75 reached in March.

At this price level, Origin commands a market cap of $8.4 billion.

More reading

• Here’s how ASX 200 energy shares have performed in 2020 so far
• ASX company busted allegedly misleading customers
• Why the Origin Energy (ASX:ORG) share price has dipped today
• Which ASX 200 sectors performed the best in November? 
• Brokers name 3 ASX shares to buy right now

Motley Fool contributor Eddy Sunarto 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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Are you looking for options for your portfolio in January? Well, whether you’re a growth, income, or value investor, one of the shares listed below could be worth considering.

Here’s what you need to know about them:

Appen Ltd (ASX: APX)

If you’re a growth investor, then Appen could be worth a look. Through its team of over one million skilled contractors, Appen provides or prepares the training data for artificial intelligence (AI) models. It counts the likes of Amazon, Facebook, Google, and Microsoft as customers. While COVID-19 is stifling its growth this year, management expects demand to bounce back strongly in 2021 when the pandemic passes. Analysts at UBS appear confident that this will be the case. They recently retained their buy rating and $44.00 price target on its shares.

People Infrastructure Ltd (ASX: PPE)

Value investors might want to check out People Infrastructure. It is a leading workforce management company that provides innovative solutions to workforce challenges. In FY 2020, the company reported a 49.2% increase in normalised EBITDA to $26.4 million. While the new financial year is going to be harder because of the pandemic, analysts at Morgans remain positive on the company. They expect People Infrastructure to deliver earnings per share of 22 cents in FY 2021. This means its shares are changing hands for just ~16x forward earnings right now. They also offer a decent fully franked ~3.2% dividend yield based on the broker’s forecasts.

Telstra Corporation Ltd (ASX: TLS)

If you’re an income investor, you might want to take a look at Telstra. Thanks to a combination of cost cutting, rational competition, and a positive growth outlook in the mobile business, Telstra has been tipped to return to growth in the not so distant future. Which, after years of dividend cuts, should mean Telstra will soon be in a position to start increasing its payouts once again. For now, though, analysts at UBS are expecting the company to keep paying its 16 cents per share dividend in FY 2021 and FY 2022. The broker has a buy rating and $3.85 price target on its shares.

More reading

• The NBN is finally finished. Is Telstra (ASX:TLS) waiting in the wings?
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• Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and People Infrastructure Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended People Infrastructure 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 BHP Group Ltd (ASX: BHP) share price will be one to watch this morning after the release of an update.

What did BHP announce?

This morning BHP provided an update on its Samarco operation in Brazil, which is co-owned with Brazilian mining giant Vale.

According to the release, Samarco has now met the licensing requirements to restart its operations at the Germano complex in Minas Gerais and its Ubu complex in Espírito Santo, Brazil. As a result, the mining giant has commenced iron ore pellet production.

This comes just over five years since Samarco’s operations were suspended following the failure of the Fundão dam on 5 November 2015. That dam failure led to the tragic loss of 19 lives at the operation.

Management advised that Samarco’s gradual restart of operations incorporates concentrator 3 at the Germano complex and pelletising plant 4 at Ubu. There will also be a new system of tailings disposal combining a confined pit and tailings filtering system for dry stacking.

Independent tests have been carried out on Samarco’s preparations for a safe restart of its operations. The company expects to initially produce approximately eight million tonnes of iron ore pellets per annum.

What has happened over the last five years?

The company revealed that extensive work is still being undertaken by the Renova Foundation to remediate and compensate for the damages of the failure of the Fundão dam in 2015 and that BHP Billiton Brasil continues to support Renova in its work.

By November 2020, Renova had spent approximately BRL 10.7 billion (approximately US$2.1 billion) on its remediation and compensation programs.

In addition to this, over the same period, approximately BRL 3.1 billion (approximately US$620 million) had been paid in indemnities and emergency financial aid to approximately 325,000 people.

Iron ore price softens.

Potentially offsetting this positive update is news that the iron ore price softened overnight.

According to CommSec, the spot iron ore price lost US$3.95 or 2.4% to end the session at US$163.05 a tonne.

This could put a bit of pressure on the shares of BHP, Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) today.

More reading

• Are we heading for a new ASX resources ‘supercycle’?
• Why is everyone talking about the iron ore price?
• ASX miners put on alert as the iron ore price crashes overnight
• ASX 200 down 0.85%: ANZ CFO resigns, tech shares tumble, iron ore jumps
• Iron ore hits 9-year high: What this means for BHP, Fortescue, & Rio Tinto

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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Well, 2020 has certainly been an eventful year, from raging bush fires to widespread pandemic panic. If one thing is for sure, we are eager to put it behind us and start afresh in 2021.

One phenomenon I will be watching in the coming year is the Millennial and Gen Z participation in the market. There have been strong catalysts this year for the massive influx, but there are also risks to this trend.

Why the trend?

Unfortunately for my young comrades (being a Millennial myself) the pandemic has hit us hardest when it comes to both unemployment and under-employment.

According to the labour force data from the Australian Bureau of Statistics, in November the youth unemployment rate increased another 0.1 percentage point to 15.6%. However, this is still lower than the 23-year record high in June, at 16.4%.

With such a high unemployment rate, the younger demographic was left sitting at home wondering what to do next.

It seems that when you mix youthful exuberance, boredom, and desperation, you get beginner investors trying their luck at share market trading. This concoction has already been dubbed the ‘Robinhood phenomenon’, popularised by the US-based fee-free trading app, Robinhood.

Data in Australia indicates that more than 40% of Millennials and Gen Zers bought shares for the first time this year, as reported in the Australian Financial Review. This is a far greater uptake than other demographics and implies these younger people were seeking a new avenue for income.

What are the risks?

When you drop a novice into a pro arena, the outcome is usually not good for the novice. It is fine to risk what you can afford to lose while gradually building up experience. When unemployed, however, what you’re risking is your next rent – or possibly (thanks to the government) your superannuation.

Unfortunately, getting rich overnight on a penny stock or pulling a full-time job’s worth of income in dividends tends to be reserved for very few people. The more common outcome is sub-optimal returns for the investor looking to make a quick fortune.

The problem (although a good problem to have in the short term) is that the market has rallied hard since the 23 March low, with the S&P/ASX 200 Index (ASX: XJO) returning just over 46% at the time of writing.

If you invested in some reasonably notable shares in March/April you would have a decent profit by now. Though the market doesn’t go up forever and beginner investors should be mindful of their exposure in the event of another bear market.

If only we had a crystal ball

To say what 2021 entails would be impossible, although it would be nice if it was a little less eventful.

There are two ways I can see it going – either the number of new young investors will go down or up with the youth unemployment rate, or Pandora’s box has been opened and the phenomenon will continue to thrive, irrespective of the unemployment rate.

It certainly will make for an interesting year ahead.

More reading

• The NBN is finally finished. Is Telstra (ASX:TLS) waiting in the wings?
• BrainChip (ASX:BRN) share price on watch following major announcements
• Got cash to invest? Here are 3 ASX shares to buy
• Why the BSA (ASX:BSA) share price is on watch today
• What to do when your shares are heavily shorted

Motley Fool contributor Mitchell Lawler 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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Those of us with longer memories (or perhaps just longer lifespans) might remember the origins of the National Broadband Network (NBN). It was first announced as an election promise back in 2007, upon which construction began shortly afterwards.

There have been many ups and downs since, as well as a seismic disruption to the telecommunications landscape in Australia – as shareholders of Telstra Corporation Ltd (ASX: TLS) would know.

In building the NBN, the NBN Co required Telstra’s old telephony network of copper wires and ducts to lay the infrastructure required to underpin of the new fibre optic cable. The impacts of this sale have been immense for Telstra shareholders.

Since Telstra could no longer both own a single national cabling network, and charge its competitors for the privilege of using it alongside it, the company is a lot smaller today than it used to be. Rewind the clock back to 2015 and Telstra was a company with a $6.60 share price, and about to pay an annual dividend of 32 cents a share.

Today, Telstra is a company with a share price of $3.01 (at the time of writing). Its investors have enjoyed just 16 cents per share in dividends in 2020.

But things could be coming full circle for Telstra.

Telstra calls NBN home

According to reporting in the Australian Financial Review (AFR), after almost 13 years, the federal communications minister has announced that the NBN is finally complete and “fully operational”. And that means that the NBN is one step closer to the government’s intended goal of privatisation.

According to the report, this declaration is one of 4 steps that the NBN will need to fulfil in order for a sale. The other steps reportedly include a lengthy Productivity Commission enquiry.

However, the AFR reports that, in a rather poetic turn of events, Telstra is the leading contender to buy the NBN back off the government when it does get the final green light for sale. There are likely to be competitors for the NBN such as superannuation funds.

But the AFR notes that any future owner that isn’t Telstra would have to pay up every year to keep using Telstra’s infrastructure, as the NBN does today. That means Telstra would be the only bidder without this handicap to overcome. As such, Telstra is considered the frontrunner.

Well, it won’t exactly be ‘Telstra’ owning the NBN, rather Telstra’s infrastructure division InfraCo. The report tells us that if Telstra did decide to bid, “the Australian Competition and Consumer Commission has been clear it would have to separate [InfraCo] from Telstra and become its own standalone company”.

So perhaps Telstra shareholders have a spin-off to look forward to at some point in the next few years. If the report is to be believed of course. Something for Telstra shareholders to keep in mind!

More reading

• Why the BSA (ASX:BSA) share price is on watch today
• 2 ASX dividend shares with big yields
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• 2 blue chip ASX shares to buy for 2021
• Cimic (ASX:CIM) share price falls despite positive update

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra 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 BrainChip Holdings Ltd (ASX: BRN) share price is on watch this morning as it comes out of a trading halt. The company’s shares were previously suspended pending a market announcement.

After yesterday’s market close, the artificial intelligence technology company provided two major announcements. The first in relation to an order for its Akida Early Access Evaluation Kit, and the second, a signing of an intellectual property license agreement.

The BrainChip share price closed at 32.5 cents, up 3.1% before being placed in a trading halt on Tuesday.

NASA places an order

According to its release, BrainChip advised that the United States National Aeronautics and Space Administration (NASA) has placed an order for its Akida Early Access Evaluation Kit.

Under the early access program, NASA will use the Akida Early Access Evaluation Kit within its NASA shared service centre (NSSC) at the NASA/Ames research centre (ARC) in California.

The early access program is bestowed to a select group of customers that can have immediate access to the Akida device, evaluation boards and technical support. In exchange for inclusion to the program, BrainChip collects a payment that offsets expenses to provide ongoing support.

NASA will use the kit to examine how Akida technology using a neuromorphic processor will meet its stringent spaceflight requirements. Brainchip highlighted that the Akida neuromorphic processor is capable and fits within spaceflight and aerospace constraints.

The ground-breaking device simulates the functionality of the human neuron without the need for an external CPU, memory or deep learning accelerator. This is important as the reduction in parts requires less size and power, thus fulfilling the minimal component count requirement.

Licencing agreement

In other news, BrainChip also advised it signed an intellectual property license agreement with Renesas Electronics America Inc.

Renesas Electronics America Inc. is a subsidiary of parent company, Renesas Electronics Corp. The latter which is a global semiconductor manufacturer that specialises in microcontroller and automotive system-on-chip (SoC) products.

Under the unconditional agreement, BrainChip will deliver its Akida technology to Renesas Electronics America for use as a SoC licenced product. The deal will include a single-use design license, implementation support services (at an agreed cost), royalty payments per unit, and software maintenance services for 2-years.

The Akida SoC is a small, low cost and low power product that makes it ideal for cutting edge applications. These include advanced driver assistance systems (ADAS), autonomous vehicles, drones, vision-guided robotics, surveillance and machine vision systems.

What did the CEO say?

Commenting on the new order, BrainChip CEO Louis DiNardo said:

We are both excited and proud that NASA has procured Akida as part of our Early Access Program. The recognition that neuromorphic computing may play an important role in spaceflight applications is an important milestone for our industry.

We hope that the potential benefits from the Akida neuromorphic processor for use in spaceflight and aerospace applications may provide a valuable contribution to further NASA’s primary mission to benefit humanity.

Mr DiNardo went on to speak about the licencing agreement:

This is an exciting and significant milestone in obtaining the Company’s first IP licensing agreement. Furthermore, this is a market validation of our technology.

Licensing Akida IP also provides us with an opportunity for recurring revenue over the lifetime of our customer’s SoC product. We are equipped to help additional customers integrate Akida technology into their products, which benefit from low power and real-time performance, as well as extend capabilities to provide AI solutions to IoT devices at the edge without the need for cloud connectivity.

About the BrainChip share price

The BrainChip share price fell from glory in September after reaching as high as 97 cents. Although at current prices, its shares are down 66% from its all-time high, the company is up 673% over the past 12 months.

BrainChip has a market capitalisation of $525.4 million at the time of writing.

More reading

• Why Brainchip Holdings (ASX:BRN) shares are in a trading halt
• Why the BrainChip (ASX:BRN) share price is charging higher
• ASX small caps could get a boost with the Aussie dollar hitting 28-month highs
• Here’s why the BrainChip (ASX:BRN) share price is zooming 8% higher

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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There are some ASX shares that look like they could be very interesting to watch over the long-term.

Here are three investment ideas to keep your eyes on:

Audinate Group Ltd (ASX: AD8)

Audinate is a business that’s liked by listed investment company (LIC) Climate Capital Ltd (ASX: CAM). Audinate markets the Dante system as a better way to connect AV by replacing point-to-point audio and video connections with easy-to-use, scalable and flexible networking.

Clime liked the recent positive FY21 first quarter trading update from Audinate with monthly revenue trending upwards over the quarter, reaching pre-COVID levels by September. This was better than expected against a forecast of a 38% decline in unit volumes in 2020 which was included in Audinate’s FY20 results presentation in August.

The fund manager said that the recent sales resilience reflects Audinate’s diverse customer base, with stronger demand from corporate and higher education customers offsetting weakness from live music. Industry unit volumes are expected to rise significantly in coming years. Audinate is set to capture much of this demand, with eight times the adoption rate of its nearest competitor. Clime thinks that the next generation products have the potential to accelerate end-market acceptance.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

According to VanEck, the exchange-traded fund (ETF) provider, this investment gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages, or ‘wide economic moats’, according to Morningstar’s equity research team.

For a business to be counted as trading at attractive value, target companies have to be trading at attractive prices relative to Morningstar’s estimate of fair value.

There’s a total of 48 holdings in this ASX share’s portfolio. The largest ten positions at 30 November 2020 were: Applied Materials, Corteva, Charles Schwab, Microchip Technology, Boeing, Compass Minerals International, Aspen Technology, Yum! Brands, Cheniere Energy and American Express.

The ETF has outperformed the S&P 500 over the longer-term. VanEck Vectors Morningstar Wide Moat ETF’s total return has been 16% per annum over the last five years, compared to 13.6% for the S&P 500. Those quoted returns are after the annual management fee of 0.49% per annum.

Kogan.com Ltd (ASX: KGN)

Kogan.com is an e-commerce ASX share. Its website sells a wide variety of products and services.

On the retail side of things, customers can buy items from various categories including TVs, computers, phones, heating and cooling, appliances, furniture, office supplies, toys, video games, clothes, shoes and tools.

The services that it offers, largely through partnerships, include: car insurance, home insurance, internet, mobile, energy, superannuation, credit cards, cars and home loans.

The final place that the ASX share generates earnings from is its membership program called Kogan First. This gives free delivery on thousands of eligible products, upgrades to express shipping at no extra cost, priority customer service and access to exclusive member-only deals and discounts.

Mr Kogan, the founder of the company, has spoken about the benefit to the company of its growing number of people using its loyalty scheme: “The Kogan First community of members grew exceptionally during the second half, and importantly these loyal members on average purchase and save much more often than non-members, demonstrating loyalty to the platform, and also demonstrating the significant savings and other benefits available through the loyalty program.”

In the 2021 financial year to October 2020, Kogan.com’s gross sales were up 99.8%, gross profit was up 131.7% and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was up by 268.8%.

The ASX share also just acquired Mighty Ape for $122.4 million, which is an online retailer that specialises on gaming and toys. In FY21 Mighty Ape is expected to generate AU$137.7 million of revenue, gross profit of $45.7 million and EBITDA of $14.3 million, before synergies.

At the current Kogan.com share price it’s valued at 25x FY23’s estimated earnings.

More reading

• 2 dirt cheap ASX shares to buy in 2021
• Is this the perfect ETF to buy for 2021?
• Put these small cap ASX shares on your watchlists today
• 2 exciting mid cap ASX shares to buy for the long term
• Here’s why the Kogan.com (ASX:KGN) share price jumped over 7% higher today

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The BSA Limited (ASX: BSA) share price is on watch this morning on news of a major new telecommunications deal.

The technical services company announced after yesterday’s market close that it has secured a multi-year agreement for its field operation services. The BSA share price closed flat at 33 cents in trading yesterday.

What did BSA announce?

In the release, BSA advised it has entered an agreement to provide Telstra Corporation Ltd (ASX: TLS) with field operations services in partnership with Kordia Solutions.

BSA provides installation and maintenance solutions to the broadcast and telecommunications industries. Kordia Solutions focuses on end-to-end telecommunications, communications, broadcast and servicing infrastructure needs.

The field operations services agreement will see BSA provide Telstra with a range of services. These includes designing and constructing building systems services across its existing Victoria and Tasmanian properties. In addition, the company will perform major telecommunications work in both states that will involve asset relocation and delivery of wideband connectivity.

BSA said the initial term of the deal will be for a 3-year period. This can be extended on Telstra’s behalf for an additional two 1-year options.

The new deal is projected to generate around $25 million in revenue for BSA’s first year of the contract. While this is based on forecasted work volumes carried out, further opportunities are expected to arise in the later years.

What did the managing director say?

BSA managing director Tim Harris, welcomed the deal, saying:

BSA is extremely proud to have teamed with Kordia to secure this contract and to begin a collaborative working relationship with Telstra. We look forward to a long and successful partnership as we bring our expertise in service delivery and customer experience to Telstra and its customer base.

About the BSA share price

The BSA share price has been on peaks and troughs throughout 2020. Reaching as high 41 cents in January, before falling as low as 23 cents in March due to the COVID-19 sell-off.

BSA has market capitalisation of $143 million at its current price.

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Motley Fool contributor Aaron Teboneras owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the BSA (ASX:BSA) share price is on watch today appeared first on The Motley Fool Australia.

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