In its 2019 annual report, the Principles for Responsible Investment (PRI) organisation pointed to Australia as one of the fastest growing countries with a commitment to responsible investment.

And, according to Nuveen’s head of engagement Peter Reali, the COVID-19 pandemic will lead to environmental, social and governance (ESG) factors being even more important for investors.

In light of this, we take a closer look at 3 ASX real estate investment trusts (REITs) that have low ESG risk ratings.

Vicinity Centres (ASX: VCX)

As Australia’s second largest shopping centre landlord, this $7.60 billion company has assets skewed to large shopping malls.

Sustainalytics (a provider of ESG and corporate governance research and ratings to investors) has given this REIT a very low ESG risk score, ranking it first among its real estate industry peers when it comes to ESG. The rating service provider said Vicinity Centres is at negligible risk of experiencing material financial impacts from ESG factors, due to its low exposure to, and strong management of, material ESG issues.

At the time of writing, the Vicinity Centres share price is $1.68 per share, up 17% year to date.

Dexus Property Group (ASX: DXS)

Dexus is one of Australia’s largest office and industrial REITs and has a market capitalisation of around $10.70 billion.

It has a similar low ESG risk rating to that of Vicinity Centres, with a slightly riskier score under “governance risk”. Sustainalytics ranks Dexus as number 2 within its industry group, just behind Vicinity.

In its recent annual general meeting address, Dexus management highlighted its belief that as Australia opens up after lockdowns, office markets will continue to benefit from urbanisation and growth in capital cities, and that investors should expect a revival in the Australian property market.

At the time of writing, the Dexus share price $9.68, up 6% year to date.

Stockland Corporation Ltd (ASX: SGP)

Stockland Corp is another REIT with low ESG risk, according to its Sustainalytics score. Stockland has a market capitalisation of around $10.90 billion, and operates a diversified portfolio of residential, retail and logistics assets.

Sustainalytics has given Stockland Corp a low ESG risk score, recognising that the company is focusing on strengthening its ability to endure material risks by implementing organisation-wide sustainability programs. According to Stockland Corp’s governance and risk report, this program involves the development of environmental management systems and a cyber risk management plan.

The Stockland Corp share price has enjoyed an upward rally since April, and at $4.49 per share at the time of writing it has almost returned to its pre-Covid price level of $4.60.

More reading

• Which ASX 200 sectors performed the best in November? 
• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
• Why Harvey Norman, Northern Star, Stockland, & TechnologyOne shares are charging higher
• Stockland (ASX:SGP) share price up 3% after new chief announced
• Dexus (ASX:DXS) share price flat despite pocketing $694 million from property sale

Motley Fool contributor Miles Wu 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.

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Shareholders of OZ Minerals Limited (ASX: OZL) can look back on a highly profitable 2020, so far. Despite plummeting 41% in the pandemic-driven market rout earlier this year, the OZ Minerals share price is up 61% since 2 January.

In comparison, the broader S&P/ASX 200 Index (ASX: XJO) is down 1.5% year-to-date.

The OZ Minerals share price action since the 23 March lows has been stellar, with the miner trading up 184% from those lows. And despite the strong share price gains Oz Minerals has already booked, there could be more ahead.

That’s because OZ Minerals’ owes much of its good fortune to the soaring price of copper, its primary focus. And as with most miners, its share price tends to rise (and fall) significantly more than the price of the metals it digs from the ground. Which is why you’ll often hear that miners are ‘leveraged’ to the price of their metals.

Copper, not coincidentally, also bottomed out on 23 March at US$4,630 (AU$6,300) per ton. At time of writing, it’s trading for US$7,694 per ton, a price increase of 66%.

That’s a 7-year high for copper. But many market veterans are thinking back further, to 2011 when copper fetched more than US$10,000 per ton.

We’ll look at why below, but first…

What does OZ Minerals do?

Based in South Australia, OZ Minerals is mining company primarily focused on copper. It owns and operates the high-quality Prominent Hill copper-gold mine and the Carrapateena advanced exploration copper-gold project. Both sites are located in South Australia.

OZ Minerals also has extensive operations in Brazil and an exploration project in Sweden.

Why copper – and the OZ Minerals share price – could run higher

A boom in expected government infrastructure spending and even larger forecast growth into green energy stimulus spending are both touted as supporting higher copper prices. The highly conductive metal is used in building construction and a core component of batteries.

Mark Hansen is the chief executive of London-based metals trading house Concord Resources Ltd. As reported by Bloomberg, Hansen says:

We’re in an unprecedented situation as there’s more money than ever before sitting around looking for something to do. Copper may not have had an investment theme with the potential of ‘green’ applications since the demand-driven bull market 10 years ago.

Copper market veteran David Lilley, founder of hedge fund, Drakewood Capital Management, adds:

The world is re-engineering transportation, power generation, information storage and goods distribution… Governments across the world are supporting and encouraging the transition. The consequences for metals demand are exciting.

The OZ Minerals share price is up 2.05% at $16.94 in afternoon trading.

More reading

• Which ASX 200 sectors performed the best in November? 
• ASX 200 down 0.2%: Zip’s November update, Mesoblast jumps, Westpac’s asset sale
• Meet the most unpopular ASX large cap stock according to analysts
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on Tuesday

Motley Fool contributor Bernd Struben 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.

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Oil-exposed ASX stocks are on edge today but this is a good time to be buying the Santos Ltd (ASX: STO) share price.

That’s the view of Citigroup as it called the Santos share price its top pick in the sector.

Jitters about whether OPEC will extend production curbs weighed on oil prices overnight. This triggered early losses in the ASX energy sector which is flip flopping between gains and losses.

Santos share price recovers from early selling

The sector’s heavyweights seem to be faring better in after lunch trade though. The Oil Search Ltd (ASX: OSH) share price gained 0.5% to $3.69, the Woodside Petroleum Limited (ASX: WPL) share price climbed 0.8% to $22.37 and the Santos share price added 0.9% to $6.26.

There’s more room for the STO share price to climb, according to Citi. The broker put a 12-month price target of $7.34 on Santos and outlined six reasons why it’s the best ASX energy stock to own now.

Why the Santos share price is the top pick

The first is management’s consistent track record since 2016. Then there’s its balance sheet which is underpinned by CPI indexed production that will enable Santos to keep its investment grade credit rating as long as the oil price stays above US$25 a barrel.

“[Santos has] the highest returning growth, with capex opportunities in both the base business and major growth projects having long run marginal costs well above long term commodity price assumptions, in turn delivering the best combination of EBITDAX growth and ROE expansion,” said Citi.

“[It’s] the only company we feel comfortable with for farming down growth projects to support the balance sheet.”

Cheapest large cap ASX energy stock

Further, emission reductions can become a net present value [NPV] positive endeavour and the Santos share price is cheaper than its peers.

The broker estimated that the Santos share price implies an oil price of US$45 a barrel, while the Woodside share price implies a US$55 a barrel price and Oil Search share price implies a US$51 a barrel price.

Additional upside from going net zero

Also, what’s not captured in Citi’s valuation is potential upside for Moomba phase 1 carbon capture and storage project.

The unaccounted upside includes LNG price slope premiums from stapling carbon credits to LNG cargoes.

There’s also upside from access to third party CO², enabling competitive hydrogen price at less than $2/kg, or less ESG related risk for raising debt and equity capital.

More reading

• Which ASX 200 sectors performed the best in November? 
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on Tuesday
• How this ASX share is riding the rapid growth of ESG investing
• Santos (ASX:STO) share price on watch after guidance upgrade

Motley Fool contributor Brendon Lau 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.

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While the S&P/ASX 200 Index (ASX: XJO) lifted more than 9.5% in November, some sectors performed significantly better than others. Here’s the rundown of which sectors did the heavy lifting last month. 

S&P/ASX 200 Energy Index (ASX: XEJ) 

The ASX 200 Energy Index rallied 29.4% in November but was still down 29.6% year to date. The rise followed a 23% improvement in crude oil prices to US$44 a barrel.

Energy giants, Woodside Petroleum Limited (ASX: WPL), Santos Ltd (ASX: STO), Oil Search Ltd (ASX: OSH) and Origin Energy Ltd (ASX: ORG) all finished November in a similar fashion, with their share prices increasing between 27% and 45%. 

S&P/ASX 200 Financials Index (ASX: XFJ) 

The ASX 200 Financials Index increased 15% in November, driven by the significant share price improvements across the big four banks.

The Reserve Bank of Australia (RBA) committed to supporting the economy through a number of channels including lowering the cash rate to a record low of 0.1% in November. The RBA provided the following commentary with its recent monetary policy measures:

Lower borrowing costs free up cash flow for both households and businesses, some of which will be spent. Lower interest rates also support asset prices, which boost balance sheets and consumption and investment. And a lower structure of interest rates leads to a lower value of the Australian dollar than would otherwise be the case. The end result is a stronger economy and more jobs. 

While banks have experienced a significant reduction in earnings and dividends, things have taken a turn for better. The Commonwealth Bank of Australia (ASX: CBA) updated the market on 11 November with its COVID-19 temporary loan repayment deferral data for the month of October. This update saw a net reduction in total loan deferred facilities of 59% during October. Approximately 52,000 loans remained in deferral as at 31 October, down 75% from 30 June. 

S&P/ASX 200 Communication Services Index (ASX: XTJ) 

The ASX 200 Communication Services Index is heavily weighted towards Telstra Corporation Ltd (ASX: TLS). Both the index and the Telstra share price increased 12.5% in November. This followed the announcement of a potential restructuring of the company to create three separate legal entities. Telstra CEO, Andrew Penn, believes the restructure will allow the company to take advantage of potential monetisation opportunities for its infrastructure assets. The company also reaffirmed its FY21 guidance that was provided to the market with its full year results in August. 

S&P/ASX Real Estate Index (ASX: XRE) 

The ASX 200 Real Estate Index improved 11.5% in November. The easing of restrictions in Victoria saw a significant improvement in retail conditions and rental billings for shopping centre real estate investment trusts (REITs) including GPT Group (ASX: GPT), Vicinity Centres (ASX: VCX), Stockland Corporation Ltd (ASX: SGP) and Scentre Group (ASX: SCG). 

More reading

• ASX 200 down 0.2%: Zip’s November update, Mesoblast jumps, Westpac’s asset sale
• Meet the most unpopular ASX large cap stock according to analysts
• Banks rejoice: House prices to return to 2019 levels
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on Tuesday

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

In a blog post Tuesday, Amazon.com, Inc (NASDAQ: AMZN) announced that the 2020 holiday shopping season through Cyber Monday has been its “biggest holiday season to date”. Consumer behaviour has undergone a dramatic shift as the coronavirus pandemic has caused shoppers to pivot to e-commerce for their gift-giving needs. 

Amazon revealed that independent businesses on its platform generated $4.8 billion in worldwide sales between Black Friday and Cyber Monday, an increase of 60% year over year.

Small- and medium-sized businesses in the US have sold roughly 9,500 products per minute so far during this holiday season, and more than 71,000 businesses worldwide exceeded $100,000 in sales.

One trend that has been consistent in recent years has been high demand for Amazon-branded products, with the latest edition of the Echo Dot and Fire TV Stick 4K with Alexa Voice Remote among the biggest sellers.

Shoppers also sought out Barack Obama’s best-selling book A Promised Land, and Revlon’s One-Step Hair Dryer and Hot Air Brush. Other top sellers were the Lite-Brite Ultimate Classic, Amazon Smart Plug, and the 23andMe Health and DNA Test

Amazon also identified several notable shopping trends this season, with “self-care, nesting at home, and cozy comfort” leading the pack in the US.

This has already been an extraordinary year of the e-commerce leader, with net sales that jumped 35% year over year during the first nine months of 2020. To give that context, Amazon’s net sales grew just 20% during the same period in 2019. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Cyber Monday sales hit a record $10.8 billion
• 2 reasons Amazon will keep taking ad sales from Google
• How the biggest companies are the worst investments
• 10 most searched shares in Australia
• Better buy: Alibaba vs. Amazon

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena owns shares of Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Afterpay Ltd (ASX: APT) share price performance continues to beat its buy now, pay later competitors. Its shares are within 5% of its previous record all-time high of $105.80 per share.

This compares to the likes of Zip Co Ltd (ASX: Z1P), Sezzle Inc (ASX: SZL), Splitit Ltd (ASX: SPT), Openpay Group Ltd (ASX: OPY), Laybuy Holdings Ltd (ASX: LBY) and Humm Group Ltd (ASX: HUM) that are all more than 30% below previous highs. So, why is this the case? 

Laybuy and Zip flat on trading updates 

It seems like the glory days where BNPL shares would rocket up on any type of announcement are long gone. The Laybuy and Zip share prices are flat after both updated the market with growth in November.

Laybuy announced a 200% year-on-year increase in gross merchandise value (GMV) of NZ$61 million while Zip announced record transaction volumes in November of $577.1 million, up 44% on October and more than 100% YoY. Despite what reads like a good November update, the Zip share price is down 0.50% and Laybuy share price is up only 1% at the time of writing.  

How is Afterpay different?

International expansion and key partnerships are the main differences between Afterpay and its competitors. 

On 20 October, Afterpay became the first BNPL to form a partnership with a big four bank. The partnership will allow Afterpay to provide Westpac transaction and savings accounts and other cash flow management tools to its 3.3 million customers in Australia in the second quarter of FY21. 

Furthermore, Afterpay is one of the only BNPL companies to have multiple planned expansions. The company launched into Canada in August with a number of large merchants now live, integrating or signed. 

Its acquisition of Pagantis in Europe remains subject to approval from the Bank of Spain. The company calls this acquisition a “key step in our efforts to be a truly global business”. Pagantis provides an opportunity to launch into Spain, France and Italy immediately and to potentially enter other countries in the European Union.

Afterpay also established a base in Singapore to drive the development of a strategy for the Southeast Asia market. 

More reading

• Why Appen, Chalice Gold Mines, Piedmont Lithium, & Zip shares are dropping lower
• Why Laybuy, Mesoblast, Sandfire, & Telix shares are charging higher
• ASX 200 down 0.2%: Zip’s November update, Mesoblast jumps, Westpac’s asset sale
• Zip (ASX:Z1P) share price higher after record November performance
• Laybuy (ASX:LBY) share price on watch after delivering strong growth in November

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Raiz Invest Ltd (ASX: RZI) shares are shooting the moon today, rising 7.61% at the time of writing to 99 cents a share. The Raiz share price closed at 92 cents yesterday afternoon before opening at 93 cents this morning. The company’s shares then shot as high as $1.03 (a new 52-week high), before settling to their current price.

At 99 cents per share, Raiz Invest is valued at a market capitalisation of around $70 million.

It’s been a topsy-turvy year for the Raiz share price. It started out the year at 83 cents and climbed as high as 98 cents in February before the coronavirus-induced share market crash hit this company for six. Raiz shares fell almost 70% between 19 February and 23 March. However, they have also risen 230% between 23 March and today’s share price.

So what is Raiz? And why are the shares making new highs today?

Raiz-ing the stakes

Raiz is an investment company, one specifically targeting ‘millennials’ and young people. Its flagship product is the ‘Raiz’ app, which offers investing services, as well as superannuation.

These ‘investing services’ come in the form of facilitating easy investing into a variety of managed funds run by Raiz. Users can ‘set up’ a plan for periodic investing, such as ‘$5 a week’ or similar. They then choose from one of seven funds Raiz offers, and the investment is converted into units on behalf on the user.

Raiz also offers ’round-ups’, which allow a user to link a credit or debit card to their Raiz account, and have their transactions ’rounded-up’ to the nearest dollar, or another chosen threshold. The excess is then automatically invested in the user’s Raiz account.

ETFs on an app

The seven funds Raiz operates are graded on ‘risk tolerance’ and are mostly invested in underlying index exchange-traded funds (ETFs). They range from ‘conservative’ to ‘aggressive’, with intermediaries like ‘moderately conservative’ and ‘moderately aggressive’. Depending on the choice of fund, the cash will be allocated across a variety of assets. These include Australian shares, international shares, fixed-interest investments and cash.

For example, the Raiz ‘moderately aggressive’ portfolio allocates 43.6% to S&P/ASX 200 Index (ASX: XJO) shares, 13.8% to Asian shares, 6.4% to European shares, 8.9% to United States shares, 21.3% to corporate bonds, 3% to government bonds, and 3% to cash.

Raiz also offers two additional portfolios, the ’emerald’ portfolio and the ‘sapphire’ portfolio. The emerald portfolio has an ethical investing focus, whilst the sapphire portfolio is a hyper-aggressive option which includes a 5% allocation to the cryptocurrency bitcoin.

As we touched on earlier, Raiz also allows users to open a superannuation fund, which is operated in a similar manner to the investment platform.

All of this doesn’t come free, of course. Raiz doesn’t charge users with a zero balance. But once a user has money invested, Raiz takes a $2.50 a month fee on balances under $10,000, and a 0.275% per year fee on balances over $10,000.

Why is the Raiz share price raising the roof today?

Today’s breakout performance for the Raiz share price is most likely due to a monthly update the company released to the markets this morning. In this update, Raiz told investors it increased funds under management (FUM) by 10.6% to $581.34 million over November. Raiz had only surpassed $500 million in FUM for the first time in September.

Active customers in Australia grew 6.4% over the month to 233,477. That represents growth of 51.9% over the past 12 months. Investment accounts were up 6.3% in November to 437,116, an increase of 64.4% over the previous 12 months.

Active customers also grew by 17% to 56,699 in Indonesia, and by 34.8% to 27,787 in Malaysia as well.

Raiz CEO, George Lucas (not the Star Wars director!), had this to say on the numbers:

The growth in Funds under Management in November exceeded our forecasts… This was driven by a strong inflow of funds from existing customers and rising equity markets in November…

The focus over the coming months in Australia is to deliver a portfolio where our customers can choose their own asset allocation, as well as the addition of self-managed super funds (SMSFs), both of which should assist in increasing revenue per customer. In Southeast Asia, we are focused on customer acquisition, which after four months of being fully operational is very pleasing.

More reading

• This cheap ASX share is supplying US giants: fundie
• Raiz (ASX:RZI) share price up on positive business update
• Why these 4 ASX tech shares surged today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Adore Beauty Group Ltd (ASX: ABY)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $8.35 price target on this online beauty retailer’s shares. The broker was pleased with its trading update and notes that management has upgraded its guidance for the first half. And while it is keen to see whether this was at the expense of margin, it doesn’t think this is the worst idea if it was. The broker believes a focus on growth at this stage in the shift to online is a smart move. The Adore Beauty share price is trading at $6.23 this afternoon.

Breville Group Ltd (ASX: BRG)

A note out of Macquarie reveals that its analysts have upgraded this appliance manufacturer’s shares to an outperform rating with an improved price target of $27.00. According to the note, the broker believes that sales will be elevated during the holiday season due to a redirection in spending. After which, it expects consumer demand to remain strong for its products in the near term, underpinning solid earnings growth. The Breville share price is changing hands for $25.01 on Wednesday.

Collins Foods Ltd (ASX: CKF)

Analysts at Morgans have retained their add rating and lifted the price target on this quick service restaurant operator’s shares to $11.39. This follows the release of its half year results earlier this week. The broker was pleased with the result and believes it demonstrates the strength of the KFC Australia business. Morgans appears confident that the business will underpin further growth in the second half and FY 2022. This should be supported by improvements across the rest of the company as trading conditions improve. The Collins Foods share price is fetching $10.24 this afternoon.

More reading

• ASX 200 rises on Tuesday
• Why Adore Beauty, Bank of Queensland, Bega Cheese, & McPherson’s are dropping lower
• ASX 200 up 1%: Domino’s rockets, Collins Foods delivers strong result, GPT offloads asset
• Why Collins Foods, Domino’s, Macquarie Telecom, & PolyNovo shares are charging higher
• Adore Beauty (ASX:ABY) share price lower despite upgrading guidance

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods 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.

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The SRG Global Ltd (ASX: SRG) share price is up 5.26% in afternoon trading, having retreated from earlier gains of 9%. This follows on the company’s revised guidance update released to the ASX yesterday. Today’s lift in the SRG share price brings the company’s gains to 122% since its shares hit their 2020 low on 24 March. Shares are now on par with where they finished 2019, having reversed the COVID-led selloff earlier this year.

What’s driving the SRG Global share price higher?

The SRG share price is on the move today after the company revised its 2021 financial year guidance for earnings before income, tax, depreciation and amortization (EBITDA) to $42–45 million, up from $38-42 million.

The company forecast its first half FY21 EBITDA will be $19–20 million, and highlighted that $550 million of contracts with repeat and targeted clients have been announced since 1 July.

SRG Global now has $1 billion of work in hand, up 41.5% since 30 June.

Looking ahead, the company stated it expects further near-term contract wins with its repeat and targeted clients.

Commenting on the revised guidance, David Macgeorge, managing director said:

SRG Global’s strategy has been to shift towards a greater proportion of annuity / recurring earnings, with a disciplined focus on core business, core clients and core geographies. This strategy puts the company in a very strong position to continue building momentum into 2021, providing the confidence for our upgraded guidance for FY21…

The company is well-placed to continue to fund future growth requirements with our strong liquidity / balance sheet position. The improved financial performance and guidance is underpinned by our recent contract wins, record work in hand position of $1 billion and a high level of annuity earnings. The outlook for SRG remains positive given the company’s exposure to diverse sectors and geographies, quality commodities, a tier one client base and growing levels of infrastructure construction and maintenance expenditure.

What does SRG Global do?

SRG Global is a construction and maintenance services company. Its operating segments include construction, asset services, and mining services. As part of its construction business, the company supplies integrated products and services for the development of complex infrastructure. These include bridges, dams, high rise towers, car parks, and hospitals.

With the SRG share price up more than 14% in the first two trading days of December, investors are clearly pleased with the upgraded guidance.

More reading

• SRG Global (ASX:SRG) share price is rocketing higher today. Here’s why.
• SRG Global (ASX:SRG) share price up 5% on new contract wins

Motley Fool contributor Bernd Struben 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.

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Fintech company Cashrewards Limited (ASX:CRW) has started trading on the ASX today following the completion of its successful $65 million initial public offering (IPO).

Minutes after trading began, the Cashrewards share price rocketed up as high as 15.6% to $2.00. It has since retreated to the current price of $1.865, at the time of writing, after initially listing at $1.73.

Proceeds from the IPO

The Cashrewards IPO was strongly supported by both institutions and retail investors. Applications for shares in the financial technology platform significantly exceeded the final raising, resulting in substantial scale back. 

The company says the net proceeds received from the IPO will total $45 million, after payment to selling shareholders and costs associated with the IPO preparation. Cashrewards says these funds will be invested primarily in marketing, product development, and key talent recruitments.

More reading

• Banks rejoice: House prices to return to 2019 levels
• CBA (ASX:CBA) and the ASX banks just had an amazing month
• Fund managers are snapping up these ASX stocks at a record pace
• Here’s when your ASX bank dividends are being paid in December
• Why the banks are back in the ASX 200 spotlight

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.

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