The Finbar Group Limited (ASX: FRI) share price had the wobbles today after the company announced completion of its Riverena apartments.

The news initially dropped the property developer’s share price down to 72.5 cents before lifting higher to 75.5 cents, up 3.4% in mid afternoon trade. However, the Finbar share price later again retreated, sliding back down to close at 72 cents, down 1.37%.

Let’s take a closer look.

What does Finbar do

Located in Western Australia, Finbar is engaged in property development. The company focuses on developing medium-to-high density residential buildings and commercial offices. Finbar operates in apartments, commercial, retail, and leasing.

Riverena apartment completion

Finbar advised today that its Riverena development in Rivervale, Western Australia, had reached practical completion. The end value across all residential lots is estimated to be $52 million.

Despite the impact of COVID-19, the project has secured $22.2 million in pre-sales with 56 apartments under contract. Owner occupiers make up the majority of buyers, accounting for 70% of sales to day. About 20% of the apartments under contract were attributed to first homebuyers.

Settlement on the pre-sold units at Riverena is expected to start in November, with revenue to contribute to FY21’s earnings.

What did management say?

Commenting on the achievement, Finbar managing director Darren Pateman said:

The Riverena project is part of a significant investment in the growing Rivervale precinct which will benefit local residents and businesses in the area, and will lead on to the continuation of our developments in the precinct on other land in which we have an interest.

The sales secured at the project to date indicate a growing confidence in the market which can be attributed in part to recent government stimulus measures and the strength of the WA economy in relation to other states and countries.

This improvement in sentiment has resulted in October 2020 on track to be the largest sales month in two years, which again points to a gradual recovery in the Perth residential market.

Mr Pateman called on the Western Australia government to remove the foreign buyers’ surcharge, saying he believed the added cost had stopped overseas investor activity and could prevent sustained growth in the housing market. He added:

Confidence in the WA market is improving and it is important to keep that momentum moving in the right direction by encouraging investors back into the market, and we believe removing the foreign buyers’ surcharge will contribute significantly to that whilst further boosting employment for the construction sector generally.

About the Finbar share price

The Finbar share price has skyrocketed over the past week, jumping more than 17%. At a current market capitalisation of $197 million, the Finbar share price looks to be recovering some lost ground. Shares in the property developer fell to 52 cents in March after achieving a 52-week high of $1.01 in February.

More reading

• The ASX 200 was mixed today, it finished down 0.1%
• 3 sublime ASX growth shares to buy this month
• 3 key takeaways from the Qantas (ASX:QAN) AGM
• Why AREITs like this one stand to gain from the rapid growth of e-commerce
• Why the Lark (ASX:LRK) share price is flying high today

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. 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 S&P/ASX 200 Index (ASX: XJO) was mixed today. It finished down 0.1% to 6,167 points.

Here are some of the highlights from the ASX today:

National Australia Bank Ltd (ASX: NAB)

NAB announced some more costs for FY20 today.

The bank said that its profit will be reduced by a net increase in provisions for customer-related remediation matters amounting to $380 million before tax, or $266 million after tax. Of this, $245 million before tax ($172 million after tax) is for wealth-related matters which are now included in NAB’s discontinued operations. The other $135 million before tax ($94 million after tax) is for banking-related matters.

There is also going to be a net increase in payroll remediation provisions of $128 million before tax ($90 million after tax). The ASX 200 bank said that it has identified a range of potential incorrect payments dating back to October 2012.

In addition to the above, there is an impairment of property-related assets of $134 million before tax ($94 million after tax).

NAB said that the above provisions and impairment is expected to reduce the bank’s common equity tier 1 (CET1) capital ratio by approximately 15 basis points (0.15%).

The impairment of the property assets relates to the fact that more of NAB’s employees are expected to adopt a flexible and hybrid approach to working over the longer term. This is expected to include a mix of working remotely and in offices for the purposes of collaboration, planning and creating the right culture.

In reaction to today’s update, the NAB share price went up by 0.6%. 

Qantas Airways Limited (ASX: QAN)

The ASX 200 airline company held its annual general meeting (AGM) today.

Whilst delivering his speech, CEO Alan Joyce spoke about a number of points.

He blamed the closed borders for negatively impacting the FY21 first quarter earnings by $100 million. The border closure impact is expected to continue into the second quarter.

If the borders had stayed open, Qantas thought its domestic operations would be operating at about 60% of pre-COVID levels by now. But it’s currently operating below 30%.

Assuming Queensland opens to New South Wales in the coming weeks, Qantas expects domestic capacity to reach up to 50% by Christmas.

Qantas also revealed that when South Australia opened to New South Wales, 20,000 seats were sold across Qantas and Jetstar in just 36 hours.

With most international travel off limits for a while, the airline is expecting to see a boom in domestic tourism once more borders open up.

Mr Joyce said that Qantas has identified $15 billion in cost savings over the next three years, mostly through reduced flying activity. It’s also targeting $1 billion of ongoing cost improvements from FY23.

Qantas said that its cashflow from continuing operations is positive before one-offs like redundancies. Mr Joyce boasted that Qantas could continue keep flying at this level for a very long time if it had to.

Loyalty and Qantas Freight are the two reasons why the ASX 200 company continues to be cashflow positive.

The Qantas share price went up by 2.7% in reaction to this news.

BlueScope Steel Limited (ASX: BSL) reveals a strong update

Steel business BlueScope announced an update today.

It advised today that it expects that its underlying earnings before interest and tax (EBIT) will be around $340 million for the first half of FY21. This would be a 30% increase compared to the second half of FY20.

All of its divisions are performing well with a segment result that will be similar or better compared to the previous half.

BlueScope managing director and CEO Mark Vassella said: “Despite the global disruption caused by COVID-19, we’ve had a solid performance from all our operating segments for the three months to 30 September. This is a clear demonstration of the effectiveness of BlueScope’s strategy and the resilience of our asset portfolio.

“Benchmark steel spreads have improved and demand in most of our markets is robust and the balance sheet is in excellent condition.”

The BlueScope share price went up 11%. It was the best performer in the ASX 200. 

More reading

• 3 key takeaways from the Qantas (ASX:QAN) AGM
• CleanSpace (ASX:CSX) share price rockets 62% higher following IPO
• Why the Iluka (ASX:ILU) share price nearly halved today
• Are these 2 ASX commodity shares ready to ride 2 booming trends?
• Is the Megaport (ASX:MP1) share price in the buy zone today?

Motley Fool contributor Tristan Harrison 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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I think one of the best ways for investors to grow their wealth is to make long term investments in quality shares with strong business models and equally strong growth prospects.

Three growth shares that I think could provide outsized returns for investors are listed below. Here’s why I like them:

a2 Milk Company Ltd (ASX: A2M)

One of my favourite growth shares is this fresh milk and infant formula company. I think its shares could generate strong returns for investors over the next few years thanks largely to the increasing demand for its infant formula products in the massive China market. I expect this growing demand and its strong pricing power to underpin above-average earnings growth once the pandemic passes and trading conditions normalise.

Altium Limited (ASX: ALU)

I believe this leading printed circuit board (PCB) design software provider could be a great option for investors. It has been growing at a very strong rate over the last few years and looks well-positioned for more of the same in the coming years. This is thanks to its leading software and its exposure to the booming artificial intelligence and Internet of Things markets. Management certainly is confident in its growth trajectory and is targeting revenue of US$500 million by 2025-26. This will be a 150% increase on FY 2020’s revenue and I believe Altium is in a position to achieve it.

Cochlear Limited (ASX: COH)

A final growth share to consider buying is Cochlear. I think the global developer, manufacturer, and distributor of cochlear implantable devices for the hearing impaired has very strong long-term growth potential. This is thanks to its leading position in a market with high barriers to entry and increasingly positive tailwinds. In respect to the latter, I expect Cochlear to benefit from ageing populations across the globe. After all, hearing loss is a part of growing old. So a growing number of over 65s globally can only be a good thing for the company in my opinion.

More reading

• The 10 ASX stocks worst hit by a Biden US presidential election win
• Why it makes sense to invest in ASX shares
• Broker updates are mixed on these 6 high profile ASX 200 shares
• Here’s where I would spend $10,000 on ASX shares today
• 2 no-brainer ASX shares to buy immediately

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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Cochlear 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.

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The Qantas Airways Limited (ASX: QAN) share price has been a positive performer on Friday following the release of its annual general meeting presentation.

In afternoon trade the airline operator’s shares are up 2.5% to $4.54.

Listed below are three key takeaways from today’s annual general meeting that I think investors ought to know about:

The reinvention of Qantas.

Noting that the IATA estimates that global travel demand could take up to four years to fully recover from the pandemic, Qantas’ CEO, Alan Joyce, spoke about the need to reinvent the airline following COVID-19.

He commented: “The only antidote when you’re faced with less revenue is to lower your costs. We have identified $15 billion in cost savings over the next three years, mostly through reduced flying activity. We’re also targeting $1 billion in ongoing cost improvements from Financial Year 23.”

The chief executive advised that Qantas has stopped cash spending on sponsorships, is renegotiating arrangements with travel agents, and reviewing its ground handling operations. The latter could help save up to $100 million a year.

Though, he stressed that the airline needs “to do this without losing sight of the things that make the Qantas Group an Australian icon and one of the world’s best airlines.”

International travel in 2021.

Qantas’ Chairman, Richard Goyder, revealed his frustration that certain domestic borders remain closed, but was encouraged by the New Zealand travel bubble and potentially others to come.

He said: “By contrast, the lifting of some restrictions with New Zealand is very encouraging. So, too, is the potential for travel bubbles with parts of Asia. Both Qantas and Jetstar are keeping a close eye on new markets that might open up as a result of these bubbles – including places that weren’t part of our pre-COVID network.”

“By early next year, we may find that Korea, Taiwan and various islands in the Pacific are top Qantas destinations while we wait for our core international markets like the US and UK to re-open. We’re already doing this domestically – adding new destinations that suddenly make sense – and it’s the kind of flexibility we need to make the most of any cash positive opportunities in the year ahead,” Mr Goyder added.

Domestic recovery behind schedule.

CEO, Alan Joyce, advised that Qantas was expecting the group domestic business to be operating at about 60% of pre-COVID levels by now. However, the continued border closures mean capacity is now below 30%.

This delay has resulted in a $100 million negative impact on earnings for the first quarter of FY 2021. It will also have an impact in the second quarter as well. However, Mr Joyce remains confident the recovery is coming and Qantas is well-placed to ride out the storm.

He commented: “Essentially, this is a timing issue. We know the upswing will materialise – just later than planned. Importantly, we have the liquidity to manage this. And, because our cash flow from continuing operations is positive before one-offs like redundancies, we could continue at this level of flying for a very long time – if we had to.”

“Assuming Queensland opens to New South Wales in coming weeks, we expect Group Domestic capacity to reach up to 50 per cent by Christmas,” he added.

Finally, Mr Joyce believes Qantas is well-positioned to grow its market share in the domestic market. He explained: “Over time, our domestic market share is likely to increase organically from around 60 per cent to around 70 per cent, as our main competitor changes its strategy.“

More reading

• Why Adore Beauty, BlueScope, Qantas, & Webjet shares are charging higher
• 5 things to watch on the ASX 200 on Friday
• 5 ASX 200 events to watch for this week
• 5 ASX 200 shares that just received share price upgrades
• Leading brokers name 3 ASX shares to buy today

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.

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While a lot of focus has been put on the share price gains of successful ASX e-commerce shares, the companies that support them have garnered fewer headlines.

Nonetheless, alongside the rapid rise of e-commerce, the demand for quality logistics facilities to store and transport online goods is growing strongly.

Singapore’s Mapletree Logistics Trust said the rapid growth of e-commerce, particularly in Queensland, was a core reason behind its decision to invest $114 million in a Brisbane distribution centre.

As quoted by the Australian Financial Review (AFR) Mapletree noted:

In Queensland, e-commerce logistics distribution and warehousing has shown strong growth of 5.2 per cent annually, the highest of any state nationally. The COVID-19 pandemic has also spurred a major uptick in online shopping, particularly in the food, beverage and grocery sector. Consequently, surging sales of major supermarket players as well as consumer demand for fast delivery are translating to higher demand for prime logistics space with good connectivity.

For ASX investors, there are several real estate investment trusts (REITs) that hold a portfolio of logistics facilities that could stand to benefit from the growing demand for quality warehouse space.

Among them is APN Industria REIT (ASX: ADI).

What does APN Industria REIT do?

APN Industria is managed by APN Funds Management. The Australian REIT (AREIT) owns a portfolio of 32 quality industrial and business park assets located in Sydney, Melbourne, Brisbane and Adelaide. which is valued at $826 million.

Industria’s portfolio, valued at $826 million, provides tenants with practical spaces to meet their business needs.

How has the APN Industria share price been performing

APN Industria’s share price was trending steadily higher for 5 years, right up until the 21 February panic selling began. That saw it drop from its all time high of $3.21 per share all the way down to $1.74 on 23 March, a loss of 46%.

The share price has regained 52% from that low, and is up again today, but remains down 9% year-to-date. That compares to a 6% loss for the All Ordinaries Index (ASX: XAO).

But with the booming e-commerce trade driving demand for quality facilities, I believe APN Industria could retest its all-time high share price as we head into 2021. The AREIT also pays a 6.5% annual dividend yield, unfranked.

More reading

• Looking to invest in ASX real estate shares? Read this first
• Could industrial REITs be the best ASX shares to buy for dividends?

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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The Lark Distilling Co Ltd (ASX: LRK) share price is flying high today on the release of its first quarter FY21 update.

The news has sent its share to an all-time high of $1.55, up 14.8% during afternoon trade. In comparison, the All Ordinaries Index (ASX: XAO) has dropped to 6,369 points, down 0.2%.

Let’s see how the whisky producer performed for first quarter of the new financial year.

Strong Q1 performance

For the period ending September 30, Lark reported a robust result, despite restricted trading conditions related to COVID-19.

Net sales growth increase to $2.28 million, representing 78% of year-on-year growth (YoY). This was underpinned by its online division which jumped to a record 400% YoY. The limited release program of its Sherry Sherry, Wolf Release, and Rum Cask contributed to the standout performance.

The overall positive result was offset by a decline in the hospitality segment. Revenue fell to roughly $300,000 due to state-wide lockdown. However, it is anticipated the reopening of borders on October 28.

Total value of whisky under maturation was $107 million, reflecting an 8% lift on the prior period. The company focused its sales and marketing efforts on the launch of Lark Symphony No1, and recruited a sales representative. The new appointment will seek to drive sales and improve Lark’s service of the independent liquor trade.

The company had a healthy cash on hand balance of $12.5 million, supported by the capital raise undertaken in September. Most of the proceeds will be used to fund the inventory build of Lark’s whisky under maturation before FY23.

Nomination award

Lark has been nominated as ‘worldwide whisky producer of the year’ in one of the industry’s most illustrious awards. The International Whisky and Spirits Competition winner will be announced on 18 November in London.

Commenting on the nomination, Lark managing director Geoff Bainbridge said:

It is an incredible achievement for a little distillery at the bottom of the world to step onto the global stage and bring home two golds, five silvers and the coveted nomination for Worldwide Whisky Producer of the Year. We are immensely proud of the quality of product we produce here in Tasmania and are honoured to be recognised by the global industry and the International Whisky and Spirits Competition in 2020.

Lark share price summary

The Lark share price has performed solidly in the past 6 months, gaining 94% from the 78 cents reached in April. At a market capitalisation of $95 million, and a raft of upbeat announcements, the sky’s the limit.

More reading

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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It isn’t just Adore Beauty Group Limited (ASX: ABY) shares that have landed on the ASX on Friday following the completion of an IPO.

Also hitting the bourse today has been the CleanSpace Holdings Limited (ASX: CSX) share price. And what a start it has had!

At the time of writing the CleanSpace share price is trading at $7.16. This is a massive 57% higher than its listing price of $4.41.

The CleanSpace IPO.

CleanSpace is a Sydney-based company which designs, manufactures, and sells workplace respiratory protection equipment (RPE) for healthcare and industrial end markets.

It was founded in 2009 by a team of biomedical engineers and launched its first respirator for use in industry in 2010.

CleanSpace’s IPO raised a total of $131.4 million. Though, just $20 million of this was primary capital through the issue of 4.5 million new shares at $4.41 per share.

The remaining $111.4 million is for existing shareholders to realise part of their long-term pre-listing investment in CleanSpace. Approximately 90% of the shares held by existing shareholders will now be escrowed voluntarily with a staged release for up to 23 months.

Based on the 77 million shares on issue and its share price gain today, CleanSpace now has a market capitalisation of $550 million.

What will it spend the proceeds on?

Management notes that the company has funded its operations and growth from shareholders’ funds, government loans, and operating cashflow in the past.

It now intends to fund the business and its growth plans partially from the proceeds of the offer and from operating cashflow.

Those plans involve the company growing its current position and markets while positioning for, and exploring, a broad range of additional growth opportunities.

It is also aiming to build on the adoption of CleanSpace products in the healthcare and industrial markets, expand awareness, enter new international markets, and continue to expand and advance its product portfolio.

More reading

• Why the Iluka (ASX:ILU) share price nearly halved today
• Are these 2 ASX commodity shares ready to ride 2 booming trends?
• Is the Megaport (ASX:MP1) share price in the buy zone today?
• The 10 ASX stocks worst hit by a Biden US presidential election win
• ASX 200 down 0.3%: NAB announces provisions, BlueScope impresses, Webjet higher

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.

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Australia’s top brokers have been busy adjusting their estimates and recommendations 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:

CSL Limited (ASX: CSL)

According to a note out of Credit Suisse, its analysts have retained their outperform rating but trimmed the price target on the biotherapeutics company’s shares to $325. The broker notes that CSL is now offering upwards of US$700 per month for plasma donations in an effort to overcome the tough market conditions caused by the pandemic. This could weigh on immunoglobulin margins due to higher production costs. Nevertheless, the broker remains positive on the company’s medium term growth prospects and stays firm with its outperform rating. I agree with Credit Suisse and would be a buyer of CSL’s shares.

Megaport Ltd (ASX: MP1)

A note out of UBS reveals that its analysts have upgraded this leading elastic interconnection services provider’s shares to a buy rating with an improved price target of $16.45. This follows the release of its first quarter update earlier this week. UBS notes that Megaport’s new ports growth was strong during the three months. As this is a leading indicator of growth, it bodes well for the future. It also believes the structural shift to cloud will continue and expects Megaport to benefit from it. I think UBS is spot on and Megaport would be a good option for investors looking for exposure to the cloud.

Webjet Limited (ASX: WEB)

Another note out of UBS reveals that its analysts have retained their buy rating and $4.95 price target on this online travel agent’s shares. This follows the release of a trading update at its annual general meeting. UBS is pleased with its cost cutting and believes it leaves the company well placed for profitable growth once travel markets recover. While I think UBS makes some good points, I’m not in a rush to invest just yet.

More reading

• Is the Megaport (ASX:MP1) share price in the buy zone today?
• ASX 200 down 0.3%: NAB announces provisions, BlueScope impresses, Webjet higher
• Why Adore Beauty, BlueScope, Qantas, & Webjet shares are charging higher
• 1 ASX 200 share to buy before an effective COVID vaccine announcement
• 5 things to watch on the ASX 200 on Friday

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 and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended MEGAPORT FPO. 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 Iluka Resources Limited (ASX: ILU) share price crashed by nearly half on Friday, but investors shouldn’t panic.

The ILU share price fell over 47% to its lowest point in five years of $5.23 during lunch time trade. This makes the mineral sands miner the worst performer on the S&P/ASX 200 Index (Index:^AXJO) by a country mile!

The loss is far worse than the 4% to 5% drop in the Southern Cross Media Group Ltd (ASX: SXL) share price and Regis Resources Limited (ASX: RRL), which are the second and third worst ASX 200 performers today.

Iluka share price fall doesn’t worry investors

But shareholders of Iluka aren’t worried. The reason behind the sharp drop is linked to the spin-off of its royalties business.

The Deterra Royalties (ASX:DRR) share price started trading on the ASX today with Iluka’s shareholders receiving one DDR share for every one ILU share they hold.

The DDR share price is currently trading at $4.77 and if you combined the value of both stocks, shareholders are actually sitting on a small gain.

When down is really up for the ILU share price

That’s a good outcome given that mining stocks are mostly trading lower. The BHP Group Ltd (ASX: BHP) share price shed 1.4% to $35.96 and the Newcrest Mining Limited (ASX: NCM) share price tumbled 2.6% to $30.77 at the time of writing.

The divestment is creating value for the Iluka share price as Deterra is worth more as a stand alone.

Deterra is the largest mining royalty company. It will receive royalty payments from BHP’s South Flank iron ore operations in Western Australia, reported Reuters.

Deterra plans to pay out all of its net profit as dividend to shareholders. But it isn’t ruling out acquiring other royalties generating assets – particularly outside of iron ore for diversification purposes.

What’s next for the Deterra share price

“Although we won’t be limiting our geographic scope, we will be more likely to be focused on opportunities in Australia than offshore,” Reuters quoted Deterra’s chief executive Julian Andrews as saying.

“We will have a fairly broad mandate so we won’t be restricting the types of commodities that we look at,” he said.

More often than not, streaming companies have tended to focus on precious metals.

Should you buy shares in Deterra?

Iluka received a royalty payment of $85 million from BHP in 2019. This is expected to increase substantially, thanks to the high iron ore price and BHP’s planned expansion of the project. Deterra’s royalties are based on a percentage of the ore produced.

The Deterra spin-off couldn’t come at a better time for ASX investors. Record low interest rates and the COVID‐19 pandemic have made it harder to find stocks with attractive and sustainable yields.

I think the 2021 outlook for the Iluka share price and Deterra share price is positive.

More reading

• Are these 2 ASX commodity shares ready to ride 2 booming trends?
• Is the Megaport (ASX:MP1) share price in the buy zone today?
• Why Iluka, Link, Resolute, & Temple & Webster shares are tumbling lower today
• The 10 ASX stocks worst hit by a Biden US presidential election win
• ASX 200 down 0.3%: NAB announces provisions, BlueScope impresses, Webjet higher

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Iluka Resources Ltd., and Newcrest Mining Limited. 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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The Buddy Technologies Ltd (ASX: BUD) share price is bucking the wider selling trend today, up 3.4% in afternoon trading. This comes following the company’s late morning ASX announcement that initially saw shares leap 7%.

Meanwhile the All Ordinaries Index (ASX: XAO) is sliding, down 0.3%.

Today’s gains see Buddy’s share price up 53% year-to-date. Shares have now rebounded 510% from 16 March, following a 67% drop during the wider COVID market rout.

What does Buddy Technologies do?

Founded in 2006, Buddy provides cloud-based technology to make its customers’ work and living spaces smarter via Buddy’s IoT (internet of things) connected devices.

Buddy trades under the LIFX brand and is a leading provider of smart lighting solutions. The company’s Wi-Fi enabled lights are currently used in nearly 1 million homes and sold in over 100 countries.

The company’s platforms include Buddy Cloud, allowing access to storage and data from any environment, and Buddy Ohm. Buddy Ohm is intended to improve operations, savings and sustainability by providing real time building operational data.

What’s behind the Buddy share price climb?

This morning Buddy Technologies announced that its LIFX Clean light has passed United States efficacy testing. The tests were conducted by US firm, Q Laboratories, an FDA registered testing facility that specialises in disinfectant efficacy testing.

LIFX Clean is the world’s first antibacterial and germicidal smart light. The results exceeded managements expectations, showing the installing the lights in ceiling fixtures will “have a material kill rate on bacteria at kitchen of bathroom counter height”.

The tests revealed a kill rate of 75% of the tested organisms at a distance of 122 centimetres.

Regulatory compliance has now been passed for Australia, New Zealand, the United States, the United Kingdom and the European Union. The US, Australian and New Zealand markets are slated for launch in December this year.

Addressing the results, Buddy Technologies CEO, David McLauchlan said:

When we launched LIFX Clean, we pitched the product as being ideal for near-field surface and surrounding air disinfection. As our expanded testing has shown, we now have a demonstrable use case of LIFX Clean in ceiling lights cleaning typical height surfaces. This is expected to open up entirely new sales opportunities and provide appealing point of sale messaging to our major retail partners.

At the time of writing, the Buddy share price is sitting at 6.1 cents per share.

More reading

• Why the Buddy (ASX:BUD) share price is up today

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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