In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to finish the week on a positive note. At the time of writing, the benchmark index is currently up 0.3% to 6,634.3 points.

Four shares that have climbed more than most today are listed below. Here’s why they are pushing higher:

Cashrewards Pty (ASX: CRW)

The Cashrewards share price is up 4.5% to $2.06. Investors have been buying the cashback rewards platform provider’s shares after the release of a trading update. According to the release, Black Friday was the biggest single trading day in Cashrewards’ history. Unique shopping members were up 83% and transactions were up 54% compared to the prior corresponding period.

Doctor Care Anywhere Group PLC (ASX: DOC)

The Doctor Care Anywhere share price has zoomed 20% higher to 96 cents after hitting the ASX boards this morning. The UK-based telehealth company listed on the Australian share market after raising $102 million at 80 cents per share. Doctor Care Anywhere is committed to delivering high-quality, effective, and efficient care to its patients, whilst reducing the overall cost of providing clinical services.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up 3% to $17.84. This appears to have been driven by a broker note out of Credit Suisse. This morning its analysts upgraded the ecommerce company’s shares to an outperform rating with a $20.60 price target. This follows the announcement of the acquisition of Mighty Ape for $122 million.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is up 3.5% to $9.08. This is despite there being no news out of the wine company today. However, with its shares sinking notably lower this week, it appears as though some investors believe they have fallen into the bargain bin. The Treasury Wine share price was hammered after China slapped significant tariffs on its exports.

More reading

• Why the Cashrewards (ASX:CRW) share price is charging higher today
• Why Flight Centre, Fortescue, Kogan, & Telix shares are racing higher
• Kogan (ASX:KGN) share price storms higher on $122m Mighty Ape acquisition
• 2 defensive ASX dividend shares for income
• Cashrewards (ASX:CRW) share price lifts on successful IPO debut

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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Cashrewards, Doctor Care Anywhere, Kogan, & Treasury Wine are pushing higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2KXCTXY

The Telstra Corporation Ltd (ASX: TLS) share price is having a good start to the day today. Telstra shares are up 0.33% to $3.04 at the time of writing. However, the picture is not so rosy if you zoom out a little.

The Telstra share price rose nearly 18% in value over the first half of November, but has been going backwards ever since. After topping out at $3.16 on 18 November, Telstra has spent the past ~2 weeks sliding back to the share price we see today.

Now that slide is only worth around 4%. But it’s still something to note. Remember, Telstra shares were in hot demand after the company announced an ambitious plan to separate its core businesses into 3 different ‘legal entities’ early last month. That was likely the main catalyst behind the 18% or so rise we saw in the first half of the month. But investors seem to have run out of enthusiasm of late.

Even so, a lower Telstra share price might be welcomed today by one group of investors in particular – those chasing dividend income.

Lower prices = higher yields

See, a lower share price directly translates into a higher starting dividend yield for any new investors. That’s because Telstra’s annual dividend that investors can expect is a flat 16 cents per share, which the company paid out in 2020 and has indicated it will do so again in 2021.

16 cents a share at a share price of $3.04 gives you a higher dividend yield than 16 cents per share at a share price of $3.16. This effect is exaggerated further by the Telstra dividend’s inclusion of full franking credits.

So what is Telstra’s dividend yield looking like today?

Well, two weeks ago, a $3.16 share price would have translated into a trailing 12-month dividend yield of 5.06%, or 7.23% grossed-up with full franking.

But today, at a share price of $3.04, that same dividend is instead worth a trailing yield of 5.26%, or 7.51% grossed-up. That’s a significant difference for a two week period when you think about it.

Will Telstra be raising this dividend any time soon?

Judging by the company’s recent commentary, it seems Telstra is more concerned with keeping the dividend at the current level, rather than raising it. At the company’s annual general meeting back in October, Telstra chair, John Mullen, said the following:

The board is acutely aware of the importance of the dividend to shareholders, and we understand the nervousness from some that COVID and other pressures may force Telstra to again cut its dividend… The board clearly understands the importance of the dividend and if necessary is prepared to temporarily exceed our capital management framework principle of paying an ordinary dividend of 70- 90% of underlying earnings to maintain a 16c dividend.

It doesn’t seem like Telstra will be cutting its dividend anytime soon, but I also wouldn’t bank on a 2021 raise, if these words are anything to go by.

More reading

• Which ASX 200 sectors performed the best in November? 
• Why the Telstra (ASX:TLS) share price stormed 14.5% higher in November
• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• 3 ASX dividend shares with 5%+ yields to buy today
• The Telstra (ASX:TLS) dividend yield is 8 times greater than term deposits

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.

The post The Telstra (ASX:TLS) dividend yield is creeping higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3gjPYXv

Construction materials company, Maas Group Holdings Limited (ASX: MGH), made its ASX debut today. The company’s shares floated through an initial public offering (IPO) at a price of $2, raising $145.6 million.

In roughly an hour since trading began, the Maas Group share price has risen by 30% to $2.60 (at the time of writing).

The company also provided a business update prior to the opening bell, saying it’s performing in line with internal budget forecasts, and is continuing to build its forward order book.

What did Maas Group announce today?

Maas Group says the business remains on track with earnings to be second-half weighted in line with the growth in construction materials, civil and hire and property segments.

The company advised it has restructured its balance sheet, and has the liquidity to allow it to take advantage of opportunities as they present themselves.

Maas Group reported its construction materials business is on track, and production at its fixed plant quarries is in line with its budget. It expects to bring in an additional quarry in the second-half.

The plant hire and civil business is tracking ahead of its internal budget, and has a strong order book flow in the pipeline.

Meanwhile, the company’s residential housing estates and commercial property projects are also tracking as planned.

However, Maas Group reported that its underground business has experienced a decrease in utilisation due to some large hire contracts running off. The company expects this to return to normal in the second half.

More about the Maas Group IPO

Maas Group was founded by a former NRL player, Wes Maas, a fringe player who played for the Parramatta Eels and South Sydney Rabbitohs in the 1990s.

The Dubbo-based business has raised $145.6 million in the IPO, pricing it at $2 a share.

According to the prospectus, the company posted $221.8 million proforma revenue in fiscal 2020, and $64.7 million proforma earnings before interest, tax, depreciation, and amortisation (EBITDA).

Those earnings are split fairly evenly between its four business divisions. The four divisions are civil construction and hire, construction materials, real estate, and underground equipment and services.

The company manages a fleet of more than 300 construction vehicles, has 600 employees, and undertakes major projects alongside the likes of Boral Limited (ASX: BLD) and Lendlease Group (ASX: LLC).

According to the prospectus, Maas Group expects to pay out a dividend yield of 2.5% from the outset.

Following its IPO, and based on the current Maas Group share price of $2.60, the company commands a market capitalisation of around $689 million.

More reading

• Ex NRL player lists $530m company on ASX this Friday

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Maas Group (ASX:MGH) share price jumps 30% on IPO debut appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2JscBwS

The BetMakers Technology Group Ltd (ASX: BET) share price is crashing lower on Friday after the release of an update on its acquisition plans.

In morning trade, the betting technology company’s shares are down over 15% to 60 cents.

What happened?

Earlier this week BetMakers launched and subsequently received firm commitments for a $50 million equity raising to fund the acquisition of the Tote and Digital Business assets of leading international online sports betting company Sportech for $56.2 million.

This acquisition is intended to accelerate BetMakers’ international growth plans and significantly expand its global customer base and strategic position to fully capitalise on emerging opportunities in the U.S. market.

To say it would be a game-changer for the company, would be an understatement.

Management revealed that on a pro-forma basis for FY 2020, the Tote and Digital Business combined with BetMakers’ existing operations would have delivered $56.1 million revenue and $7.7 million EBITDA.

This compares to the stand-alone revenue of $9.2 million and EBITDA of $0.8 million BetMakers recorded in FY 2020.

What was today’s update?

Unfortunately for the company, Sportech has announced that is has received a conditional proposal from Standard General to acquire it.

This is the second time that Standard General has made an offer. Its initial approach on 5 November was rejected. However, a 14% increase in its offer this week means the Sportech board has granted it due diligence.

In light of this, there is now a great deal of uncertainty over BetMakers’ acquisition of its Tote and Digital Business.

And while it does have a binding agreement in place with Sportech, this remains subject to a shareholder vote. If more value is seen in a full takeover, shareholders could vote down this proposal.

Though, it is worth noting that the board of Sportech has agreed to recommend the acquisition to its shareholders. It has also confirmed that it will shortly release a circular convening the meeting to approve the acquisition of the Tote and Digital Business.

More reading

• Why the BetMakers (ASX:BET) share price is up 12% to a record high
• BetMakers (ASX:BET) share price on watch after announcing major acquisition
• Here are the best performing ASX tech shares in November

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the BetMakers (ASX:BET) share price is crashing 15% lower today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/33I7O15

A boom in commodity prices amid COVID-19 is now under way. Copper prices are trading at levels not seen since early 2013. Likewise with iron ore, ripping to an extraordinary US$135 per tonne. And oil prices are making a strong recovery and expected to be supported by OPEC policies.

Soaring commodity prices across the board has seen the S&P/ASX 200 Materials Index (ASX: XMJ) lift almost 4% on Thursday. Here’s what big brokers have to say about S&P/ASX 200 Index (ASX: XJO) mining shares pushing higher.  

Diversified miners 

Credit Suisse raised its BHP Group Ltd (ASX: BHP) share price target from $39.00 to $40.00 and retains an outperform rating. This compares to its closing price on Thursday of $41.25. After assessing the recent strength in base metal prices, particularly iron ore and copper, the broker sees significant upside in first half FY21 earnings.  

IGO Ltd (ASX: IGO) is a diversified producer of nickel, copper, cobalt and gold. Credit Suisse raised its IGO share price target from $4.35 to $4.90 with a neutral rating. Its valuation was upgraded largely on the basis of the recent sale of 30% interest in its Tropicana gold mine. 

Copper 

Copper prices have been well supported by a significant increase in imports from China alongside disruptions to supply-side factors. OZ Minerals Ltd (ASX: OZL) is the main pure play copper miner among ASX 200 mining shares.

Credit Suisse raised its Oz Minerals share price target from $13.30 to $15.40 with an underperform rating. It cites higher copper prices for the price target increase, but struggles to see near-term opportunity given the recent share price appreciation. 

Aluminium 

Alumina Ltd (ASX: AWC) is a bauxite miner and alumina refiner. Its share price ran more than 25% in November to the $1.80 level but is still down 20% for the year.

Credit Suisse raised its Alumina share price target from $2.00 to $2.10 and retains an outperform rating. After reviewing the recent strength in base metal prices, the broker sees mid-single digit growth for aluminium through FY21-22. While risks remain, so does upside potential for the global economy. 

The South32 Ltd (ASX: S32) share price was upgraded to $2.80 from $2.70 by Credit Suisse. The broker sees favourable operating conditions ahead, bolstered by strong commodity prices. It notes that the company is on track to deliver high single digit earnings growth in FY21, but could be 13% or more in FY22. 

More reading

• Is Rio Tinto (ASX:RIO) share price a better buy than BHP (ASX:BHP) share price?
• Why ASX iron ore stocks like the Fortescue (ASX:FMG) share price are surging today
• ASX 200 up 0.3%: Fortescue rockets, Afterpay sales explode, Westpac APRA update
• 2 high yield ASX dividend shares to buy
• Why the Oz Minerals (ASX:OZL) share price, up 61% this year, could run higher

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post What do big brokers think about soaring commodity prices and ASX mining shares? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/33CMytF

Kiwi dairy producer, Fonterra Shareholders’ Fund (ASX: FSF), shares are unchanged this morning despite the company announcing a solid first quarter update. At the time of writing, the Fonterra share price is trading at $4.11 after closing yesterday’s session at the same level.

What was announced by Fonterra?

The Fonterra Shareholders’ Fund is a managed investment scheme that allows shareholders to invest in the performance of the Fonterra Co-operative Group, which is listed in New Zealand.

The company says the co-operative has continued to make progress on implementing its strategy and had a solid start to the first quarter. It delivered normalised earnings before interest and tax (EBIT) of NZD$250 million, up NZD$72 million on last year.

Fonterra advised it has seen improvements right across its business, with a couple of exceptions. These were Europe, which has been impacted by higher costs, and Africa, which has been impacted by lower volumes after which the company shifted its products to meet the strong demand across Asia.

The company also reported that its Greater China Foodservice business has been the stand-out performer so far, as demand for dairy in China continues to recover strongly from COVID-19. Fonterra expects to expand its foodservice business into another 13 cities in China, bringing the total number of cities it operates in to more than 360.

Fonterra says demand in its Southeast Asia (SEA) consumer business has also improved year on year. Meanwhile the company’s SEA foodservice business has started to recover as COVID-19 restrictions eased in some markets.

According to Fonterra, it will continue to divest non-core assets after announcing it will sell its China Farms for NZD$555 million, which will further reduce debt.

How has the Fonterra share price performed in 2020?

In September, Fonterra reported a full year net profit after tax of NZ$659 million for FY20, up by NZ$1.3 billion compared to the prior year.

At the time, the company said its underlying business performance had improved, with Fonterra’s foodservice business having a significantly better first half, especially in Greater China. However, this improved performance was partially offset by the disruption caused by COVID-19.

The Fonterra share price has risen by 8.16% in 2020, after falling by up to 15% in May. At the current Fonterra share price, the company commands a market capitalisation of $437 million.

More reading

• What do big brokers think about soaring commodity prices and ASX mining shares?
• Why the Cashrewards (ASX:CRW) share price is charging higher today
• Forget gold and Bitcoin. I’d follow Warren Buffett’s advice after the stock market crash
• Zebit (ASX:ZBT) share price higher on record Black Friday performance
• Premier Investments (ASX:PMV) share price higher on AGM update

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Fonterra (ASX:FSF) share price flat despite solid quarter update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3mDDWdO

The Cashrewards Pty (ASX: CRW) share price is pushing higher on Friday morning following the release of a trading update.

At the time of writing, the cashback rewards platform provider’s shares are up 3% to $2.03.

What is Cashrewards?

Cashrewards is a recently listed cashback centred e-commerce ecosystem. It allows its members to browse brands and offers and receive cashback on transactions by shopping online or in-store.

At present, it has over 800,000 members and is providing them with a broad array of cashback offers via its 1,500+ merchant partners.

These partners include Adidas, Amazon.com.au, Apple, Booking.com, Cellarmasters, Chemist Warehouse, Dan Murphy’s, Dell, Expedia, Myer Holdings Ltd (ASX: MYR), Nike, The Iconic, and Microsoft.

Management notes that its ecosystem has driven more than $2.3 billion of total transaction value (TTV) for merchant partners since its inception, which has translated into more than $100 million of cashback for members.

Trading update.

This morning Cashrewards provided the market with an update on operating metrics for the key Black Friday and Cyber Monday weekend.

According to the release, Black Friday was the biggest single trading day in Cashrewards’ history. Unique shopping members were up 83% and transactions were up 54% compared to the prior corresponding period.

Across the entire four-day period, management advised that unique shopping members were up 63% and transactions were up 44% year on year.

Also increasing was its TTV, which was up 53% on the prior corresponding period. This was driven by a strong performance across key shopping verticals.

Cashrewards’ CEO and Managing Director, Bernard Wilson, commented: “We are very pleased that the positive momentum outlined in our Prospectus has continued into the December quarter, including across these key sales events, during which the fashion, beauty, children and homewares categories performed particularly strongly.”

“We are also pleased to be seeing the early signs of an uplift in domestic travel bookings with the recent re-opening of Australian internal borders,” he added.

More reading

• Cashrewards (ASX:CRW) share price lifts on successful IPO debut

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Cashrewards (ASX:CRW) share price is charging higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2VC2MyA

Warren Buffett has a long track record of using share price declines, such as those experienced during a stock market crash, to his advantage. He has often used deteriorating market prospects to buy high-quality stocks at low prices. By holding them for the long run, he has generated impressive returns over a sustained period of time.

Therefore, while the rising Bitcoin and gold prices may seem appealing to investors, purchasing a diverse range of shares at low prices could be a more profitable long-term move.

Warren Buffett’s focus on value

Warren Buffett has not only sought to buy cheap shares after a stock market crash. Rather, he has bought high-quality companies when they trade at low prices. As such, he does not necessarily focus on the stocks that offer the widest discount to their sector peers, or those companies that have recorded the greatest share price falls. Instead, he seeks to buy the best companies when they trade for less than they are worth.

A stock market crash can make this process easier. Investor sentiment towards the equity market can weaken significantly, which may mean that some strong businesses trade at temporarily low prices. Over time, they can mount excellent recoveries due to them having strong financial positions and wide economic moats. With many companies still trading at low prices following the 2020 stock market crash, there may be opportunities to follow Warren Buffett’s strategy today.

The increasing popularity of gold and Bitcoin

Warren Buffett has generally avoided investing in Bitcoin and gold due to the opportunities available in the stock market. However, both assets have become increasingly popular among investors since the start of 2020.

Gold’s price has moved to a record high this year due to an uncertain economic outlook and low interest rates. This means that its defensive appeal has become more relevant to risk-averse investors, while a lack of returns on income-producing assets further increase the attraction of the precious metal. Meanwhile, Bitcoin’s supposed low correlation with the world economy may have been at least partly responsible for its rise since the start of the year.

Buying cheap shares after the stock market crash

However, using Warren Buffett’s strategy may offer a superior risk/reward opportunity than gold and Bitcoin after the stock market crash. The stock market has a long track record of delivering successful recoveries following its declines. And, with it being possible to identify high-quality shares at low prices through focusing on their fundamentals, they may offer less risk than Bitcoin. Its price is based on investor sentiment, since it has no fundamentals from which to deduce whether it offers a margin of safety.

Meanwhile, gold’s price may already factor in a period of weak economic performance. Therefore, as investor sentiment improves over the long run and risk aversion declines, the cheap stocks of today purchased via Warren Buffett’s value investing strategy may outperform the precious metal.

More reading

• Why the Cashrewards (ASX:CRW) share price is charging higher today
• Zebit (ASX:ZBT) share price higher on record Black Friday performance
• Premier Investments (ASX:PMV) share price higher on AGM update
• Alibaba hasn’t given up on this high-growth market
• How I’d find top growth shares to buy at cheap prices in December

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Forget gold and Bitcoin. I’d follow Warren Buffett’s advice after the stock market crash appeared first on Motley Fool Australia.

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

The Zebit Inc (ASX: ZBT) share price is pushing higher after the release of a trading update.

At the time of writing, the US-based e-commerce company’s shares are up 1% to 95 cents.

Despite this, the Zebit share price is still trading materially lower than its October IPO price of $1.58.

How is Zebit performing?

According to the release, the “Amazon for the under-served” had a record Black Friday sales period with $1.63 million in net sales generated on the day. This was an increase of 29.9% compared to Black Friday 2019.

In addition to this, the company provided an update on its performance for the first two months of the fourth quarter of FY 2020.

Over the period, Zebit has delivered total net sales of $23.5 million. This is an increase of 21.8% compared to the same period in FY 2019.

It also revealed that it recently achieved a record 3,000 customer approvals in a single day.

You might be wondering why Zebit needs to approve customers. These approvals relate to its unique business model which, unlike traditional online retailers like Kogan.com Ltd (ASX: KGN) and Amazon, comes with an in-built buy now pay later function. Its focus is on consumers with low credit scores that may be unable to get credit elsewhere.

Pleasingly, Zebit advised that it continues to see strong credit performance, which is leading to a widening contribution margin.

In light of the above, the company reiterated that it is on track to achieve its prospectus forecast for the year ending 31 December 2020.

Zebit’s President and CEO, Marc Schneider, commented: “We are extremely pleased with our trading results over the last few months and we believe that the sales achieved in the first two months of Q4 is a strong indicator of how healthy and robust the December month is expected to be.”

“So far this holiday season has proven to be a solid tailwind for the business. Q4 is seasonally the Company’s strongest, and we are entering the final month of FY20 with strong momentum. I look forward to publishing our Q4 results in January 2021 and our FY20 numbers shortly thereafter,” he concluded.

More reading

• Premier Investments (ASX:PMV) share price higher on AGM update
• Alibaba hasn’t given up on this high-growth market
• How I’d find top growth shares to buy at cheap prices in December
• How to benefit from the cloud computing boom with ASX shares
• President Trump to sign bill that could kick Chinese stocks off U.S. exchanges

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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Zebit (ASX:ZBT) share price higher on record Black Friday performance appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33He8Wq

The Premier Investments Limited (ASX: PMV) share price is pushing higher this morning following the release of its annual general meeting update.

At the time of writing, the retail conglomerate’s shares are up 1% to $23.03.

What did Premier Investments say at its annual general meeting?

At the annual general meeting, Premier Investments’ Chairman, Solomon Lew, spoke about FY 2020, current trading conditions, and its expectations for the future.

In respect to FY 2020, Mr Lew reminded investors that Premier investments was a strong performer despite facing significant COVID-19 headwinds.

The chairman pointed out that the company delivered a 29% increase in net profit after tax to $137.8 million for the year. This was despite the fact that retail store sales were down 78.4% and global sales were down $131.1 million on the prior comparable period between 11 March to 15 May.

Trading update.

Pleasingly, the company’s positive form has continued in FY 2021.

So much so, the Premier Retail business reported record sales during the Black Friday and Cyber Monday promotional period.

This led to its global online sales for the first 18 weeks of FY 2021 increasing 70% over the same period of last year.

Outlook.

No guidance has been provided for the first half or the full year. However, Mr Lew is very optimistic on the future.

He commented: “We have strong collections of wanted product for each of our brands, we have well managed inventory, and we have already seen a very positive customer response to this season’s products, with a willingness to spend as evidenced by our recent record Black Friday and Cyber Monday trading results.”

“This, together with the re-opening of borders in Australia and the recent re-opening of our stores in England gives us reason to be optimistic during this all-important trading period,” he added.

And while he warned that the crucial season is not yet over, he believes the company is significantly better placed than its key competitors.

More reading

• 5 things to watch on the ASX 200 on Friday
• What is a holding company?
• 5 things to watch on the ASX 200 next week
• 3 ASX companies named and shamed as worst in industry
• Why the Myer (ASX:MYR) share price is at an 8-month high

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Premier Investments (ASX:PMV) share price higher on AGM update appeared first on Motley Fool Australia.

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