The Keytone Dairy Corporation Ltd (ASX: KTD) share price is making a splash today, up 14.29% at the time of writing to 32 cents.

Keytone is a manufacturer and exporter of formulated dairy products in Australia and New Zealand.

The company manufactures its own products under its KeyDairy, KeyHealth and FaceClear brands. These products include premium milk and nutrition powders and health supplement capsules for the treatment of acne. Additionally, Keytone is a production partner for leading retailers and supermarket chains, undertaking contract packing services for brands around the world.

Headquartered in the heart of New Zealand’s South Island, Keytone Dairy floated on the ASX in July 2018 at an offer price of 20 cents. Its current market capitalisation stands at just over $80 million at the time of writing.

Why is the Keytone Dairy share price spiking today?

Keytone Dairy shares took off in early trade this morning after the company announced a licensing agreement for a range of Baileys iced coffee drinks. The agreement gives Keytone a distribution license for these products in Australia, New Zealand, Hong Kong and Taiwan.

The “non-alcoholic coffee flavoured ready-to-drink dairy products”, which come in 3 flavours, are currently stocked nationally throughout Caltex petrol stations in Australia. A further national ranging at Beer Wine Spirits, part of the liquor division at Woolworths Group Ltd (ASX: WOW), is “expected imminently”. Keytone will also look to roll-out the licensed Baileys range through its existing national distribution footprint.

As well as the iced coffee drinks, the agreement also includes premium Baileys powdered beverages which will be introduced to the market from 1 August 2020.

According to Keytone, initial indications for distribution opportunities in New Zealand, Hong Kong and Taiwan are promising, with “strong demand and upside expected over the short to medium term”.

The company will pay a minimum royalty of $280,000 for the license through to the end of the initial license period on 31 December 2022. Keytone expects the sales through this period to be “magnitudes higher” than the license cost, while delivering further margin benefit to the company. The range will be manufactured in-house at Keytone’s Melbourne facilities.

Commenting on today’s update, CEO Danny Rotman said:

“The licensing deal with a global company such as R & A Bailey & Co. and the Baileys brand validates the credentials of Keytone, positioning the Company for further distribution channel wins for the full proprietary product suite and provides a stepping stone for licensing of further global brands. This is a valuable contract win for the sales opportunity directly attributed to the Baileys branded products, and the significant upside this brings across the Company’s proprietary products.”

More reading

• The Aussie dollar just hit an 8-week high. Here’s how it affects your ASX shares
• 3 easy rules for building a massive ASX share portfolio
• Where will the Coles share price be in 1 year?
• The ASX 200 just hit an 11-week high. Here are 3 reasons we might be in overvalued territory
• 3 strong ASX 200 shares to buy for a retirement portfolio

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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 Keytone Dairy share price storms 14% higher on new licensing agreement appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36B0lRH

At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to record another impressive gain. The benchmark index is currently up 2.4% to 5,912.3 points.

Here’s what has been happening on the market today:

Blackmores shares climb higher.

The Blackmores Limited (ASX: BKL) share price is climbing higher today after completing the institutional component of its capital raising. Blackmores raised $92 million through institutional investors at $72.50. This was an 8% discount to its last close price. These funds will be used to strengthen its balance sheet and liquidity position, support its activities in the Asia market, and invest in its efficiency program. Blackmores also revealed that it is on track to achieve its guidance in FY 2020.

WiseTech Global earnout update.

The WiseTech Global Ltd (ASX: WTC) share price is trading lower on Thursday after providing an update on its acquisition earnouts. The logistics solutions company has renegotiated the earnout arrangements for a number of acquisitions in order to remove significant contingent cash obligations and drive the growth of its CargoWise platform. Part of the renegotiations has seen the company replace significant cash payments with shares. These shares were issued today and could have been sold by some recipients, weighing on its share price.

Bank shares charge higher again.

It has been another fantastic day of trade for the big four banks. Investors have continued to pile into the banking sector on Thursday and are driving their shares notably higher. The Australia and New Zealand Banking Grp Ltd (ASX: ANZ) share price is the best performer with a gain of over 6.5%. The worst performer in the big four is the Commonwealth Bank of Australia (ASX: CBA) share price with a 4% gain.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the Nearmap Ltd (ASX: NEA) share price with an 18% gain. This follows the release of a positive update from the aerial imagery technology and location data company this morning. The worst performer has been the Beach Energy Ltd (ASX: BPT) share price with a 4% decline. This morning analysts at Macquarie and Morgans both downgraded the energy producer’s shares to neutral/hold ratings.

More reading

• The next looming test for the ASX 200 bull market is just round the corner
• Why Beach, Jumbo, ResMed, & WiseTech Global shares are dropping lower
• Why you shouldn’t fear an ASX share market crash
• Where will the Telstra share price be next year?
• Why the Blackmores share price is charging higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Nearmap Ltd. The Motley Fool Australia owns shares of WiseTech Global. 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 ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2M4bnph

ASX investors may be close to scaling the COVID-19 wall of worry, but they won’t have to wait long to hit the next obstacle.

The S&P/ASX 200 Index (Index:^AXJO) jumped 2% in morning trade as the ASX bank stocks led the charge yet again.

This takes the gain by the top 200 benchmark to around 30% since it hit its bear market trough two months ago.

This rally’s no bull

There’s a growing sense among professional investors that the rally isn’t a dead cat bounce. While it isn’t uncommon to see 20% odd jumps before a collapse during a bear market, it’s unusual for the rebound to push into 30% plus territory. It would take one springy cat to pull that off.

I believe consensus is catching up to my view that I expressed on March 30 that the worst is likely over for the ASX 200 thanks to the government’s JobKeeper program.

The last major bear stronghold (aka the big four ASX banks) is crumbling and this only adds to my conviction that financial markets have passed “peak-pain” – barring a second wave of infections.

Looming risks to the new bull market

But don’t pop the champagne just yet. I don’t think we have a clear run back to the pre-coronavirus top as there are other headwinds building on the immediate horizon.

One potential big obstacle is Hong Kong. The violent protests gripping the territory is shaping up to be a new battle front between US allies and China.

Investors aren’t paying much attention to this looming threat as they are too caught up in the coronavirus afterparty, but this would be a mistake.

Why you should watch Hong Kong

US Secretary of State Mike Pompeo declared yesterday that the Asian financial hub no longer enjoys a high degree of autonomy from China.

This paves the way for the US government to remove Hong Kong’s special trading status and to impose sanctions against key Chinese officials and freeze Chinese assets in the US.

Such a move would mark the biggest escalation in Sino-US relations since US President Donald Trump waged a trade war against the Asian giant.

Second trade war will be worse

The trade war put a big dent in our market before the COVID-19 pandemic dominated headlines. A second trade war that puts Hong-Kong in the middle of the battlefield will be far worse than the first, in my view.

This is because the first trade war was about economics and US politics. A potential second one will involve Chinese pride and I don’t see the communist politburo compromising on this issue – not when Hong Kong symbolises China’s humiliation at the hands of the West following the Opium Wars.

It’s also alarming to see China flex its muscles on the world stage in other areas outside of Hong Kong. It’s starting to act like a superpower and this leaves it little room to back down from challenges without looking weak.

You can bet that Australia will be caught in any crossfire as we are forced to pick a side.

But Trump may only be using Hong Kong as a leverage in the next round of trade tariff negotiations, so it’s a little too early to assume the worse.

Debt time bomb

Trade wars aside, another wall of worry that the ASX 200 will need to scale is the expiration of goodwill and government stimulus in September.

This is when the JobKeeper and JobSeeker programs end. Landlords and lenders that have shown (or were forced to) restrain during the crisis might be more aggressively chasing debtors.

Even APRA is warning the banks that the worst lies ahead and not to take make a “dangerously naive” assumption of a “V” sharped economic recovery, according to the Australian Financial Review.

By all means, celebrate the flattening of the COVID-19 curve. Just remember to keep exuberance in-check.

More reading

• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• Why you shouldn’t fear an ASX share market crash
• Where will the Telstra share price be next year?
• 3 ASX shares Warren Buffett couldn’t ignore today
• What would $50,000 invested in the ASX 200 a decade ago be worth today?

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

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 The next looming test for the ASX 200 bull market is just round the corner appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3eCNC3V

As I mentioned here previously, the Westpac Banking Corp (ASX: WBC) economic team expects the cash rate to remain on hold at a record low of 0.25% until the end of 2023.

Barring a surprise flare up of inflation between now and then, I suspect that this forecast will provide accurate.

In light of this, if I had $10,000 sitting in savings accounts, I would look to put it to work in the share market where the potential returns are vastly superior.

If you have $10,000 to invest, I would suggest you consider these ASX 200 shares:

Bubs Australia Ltd (ASX: BUB)

The first option to consider buying is this infant formula and baby food company. It has been growing its sales at a very strong rate in recent years thanks to the widening of its distribution network and increasing demand in China. Until recently the company’s sales were being made at a loss, but it finally appears to have reached a scale which will make them increasingly profitable now. In light of this, I’m optimistic the capital raisings are over and it is onwards and upwards for the company from here.

Cochlear Limited (ASX: COH)

Another option to consider investing $10,000 into is Cochlear. It is one of the world’s leading hearing solutions companies and has sold more than 550,000 implantable devices globally. I don’t expect its sales to stop there and believe demand will continue to grow in the coming decades thanks to technological advances and the ageing populations tailwind. In light of this, I think it could be a great share to buy for the long term.

Kogan.com Ltd (ASX: KGN)

A final option to consider is this ecommerce company. I believe Kogan has the potential to grow very strongly in the coming years. This is due to the popularity of its offering and the ongoing shift to online shopping. In respect to the latter, online shopping was already growing very quickly, but the pandemic appears to have accelerated this structural shift. Combined with its other verticals and the rapidly growing Kogan Marketplace, the future looks bright for Kogan.

More reading

• 1 key trait to look for with most top ASX growth shares
• Should you ever buy ASX shares at an all-time high?
• Have $4,000? Invest in these 4 ASX shares right now
• ASX 200 edges down, bank share prices fly
• Is now the right time to be buying ASX bank stocks?

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended BUBS AUST FPO and 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.

The post Where to invest $10,000 into ASX shares immediately appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2TKU94x

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is back on form and on course to record another strong gain. At the time of writing the benchmark index is up 2.3% to 5,907.8 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The Beach Energy Ltd (ASX: BPT) share price is down over 3% to $1.64. This follows a sharp pullback in oil prices overnight due to increasing U.S.-China tensions. In addition to this, analysts at Macquarie and Morgans have just downgraded the energy producer’s shares to neutral/hold ratings. They have $1.60 and $1.66 price targets, respectively, on its shares.

The Jumbo Interactive Ltd (ASX: JIN) share price is down 2.5% to $11.82. This is despite there being no news out of the online lottery ticket seller. However, prior to today, Jumbo’s shares were up 73% from their March low. This could mean that some investors have decided to take a bit of profit off the table today.

The ResMed Inc. (ASX: RMD) share price is down almost 3% to $23.44 despite there being no news out of the sleep treatment focused medical device company. Though, it is worth noting that its U.S. listed shares fell heavily overnight. As such, this decline appears to be playing catch up. Investors may have been taking profit after some stellar gains over the last 12 months.

The WiseTech Global Ltd (ASX: WTC) share price is down 2% to $21.89. This morning the logistics solutions company announced that it has renegotiated the earnout arrangements for a number of acquisitions. This has included replacing significant cash payments with shares. As these shares have been issued today and not all are escrowed, I suspect that some recipients have decided to cash them in immediately.

More reading

• WiseTech Global share price drops lower on market update
• 1 key trait to look for with most top ASX growth shares
• 2 ASX shares to buy and hold for monster returns in the 2020s
• These beaten down ASX shares could be bargain buys
• 2 ASX growth stocks that could become 10-baggers in the next decade

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 Jumbo Interactive Limited. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended Jumbo Interactive Limited and ResMed 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.

The post Why Beach, Jumbo, ResMed, & WiseTech Global shares are dropping lower appeared first on Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) has been on a rollercoaster ride to start the year and we’ve already seen one ASX share market crash.

We’re less than halfway into 2020 and we’ve already seen a bear market, pandemic, oil price war and record government stimulus.

But despite some obvious headwinds, the ASX 200 has bounced back strongly in April and May. Investors are starting to get spooked as ASX shares climb back to where they were in mid-February.

So, if we were to see another ASX share market crash, what’s the best way to deal with it?

Don’t panic in an ASX share market crash

If a crash has already occurred, it’s too late to cash out. Selling out during a downturn can chrystallise your losses and reduce any potential upside.

That means it’s best to keep calm and carry on if the market has a downturn. This way you can keep your eye on the long-term prize and stay cool under pressure.

Trust in diversification

There’s a reason why diversification is key. While it can be tempting to load up on a growth share like Altium Limited (ASX: ALU) and hope for the best, portfolio construction is critical.

If we see another ASX share market crash in 2020, it’s best to have a portfolio ready to spread the risk. That means having enough investments across individual companies and sectors to weather the storm.

Don’t overinvest in ASX shares

An ASX share market crash creates buying opportunities for savvy investors. While it’s tempting to buy, buy, buy, it is a short-sighted mindset.

Make sure you only invest what you can afford to lose. No matter how good an ASX share price is, you don’t want to overinvest and commit too much capital.

The worst thing you can do as a long-term investor is be forced to sell early to cover short-term expenses.

More reading

• Where will the Telstra share price be next year?
• 3 ASX shares Warren Buffett couldn’t ignore today
• What would $50,000 invested in the ASX 200 a decade ago be worth today?
• Is the Transurban share price a buy today?
• Should you ever buy ASX shares at an all-time high?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium. 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 you shouldn’t fear an ASX share market crash appeared first on Motley Fool Australia.

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

The Experience Co Ltd (ASX: EXP) share price is flying higher in morning trade, up 17.24% at the time of writing to 17 cents.

Experience Co is a provider of adventure tourism and leisure experiences in Australia and New Zealand. These experiences include skydiving, island day trips, and reef tours. The company’s operations are located predominantly on the eastern seaboard of Australia from the Great Ocean Road in Victoria to Queensland’s Port Douglas. It also has skydiving operations in Queenstown, New Zealand.

Despite getting off to an impressive start after listing in 2017, Experience Co shares haven’t had the best run on the ASX to date – falling from around 88 cents in December 2017 on the back of weak tourism conditions, poor weather events, and the resignation of its CEO.

Why has the Experience Co share price bounced today?

This morning, Experience Co released a market update in regard to the impact of COVID-19 on its operations. The company had previously announced the indefinite suspension of all operations on 23 March.

According to today’s release, operations have resumed at Experience Co’s Queenstown skydiving drop zone. The company is also aiming to resume operations at a number of Australian-based drop zones during June.

On the whole, experiences will be activated on a breakeven basis, staged over the coming months in line with the relevant jurisdictional lifting of restrictions.

In terms of financial stability, the company believes it is well-positioned to sustain an extended period of hibernation with $10 million cash on its books as at 30 April 2020. It also has an additional $15 million undrawn capacity on its debt facility with National Bank of Australia Ltd (ASX: NAB) and facility agreement waivers in place in relation to covenant testing for the 30 June 2020 testing period.

Assuming operations are suspended and there are no material changes in market conditions, Experience Co is anticipating its minimum monthly net cash outflow to average approximately $1 million per month to 30 September 2020.

As for wages, the company has triggered job subsidy programs in both Australia and New Zealand. The respective programs have been implemented for 360 eligible employees in Australia and 78 employees in New Zealand. Meanwhile, senior executives and board members have taken a 30% reduction in remuneration until 30 June 2020.

Experience Co has also been supported by lease cost relief with the co-operation of its landlords. As a result, monthly lease expenses through a combination of waivers and deferrals have been reduced. This includes 100% rent relief for Ports North and fees and charges in its Great Barrier Reef business until 31 December 2020.

Looking forward, Experience Co noted the continuation of its strategy for business simplification. It described the divestment of its Hunter Valley and Byron Bay Ballooning businesses as “well progressed” and cited other surplus asset sales processes are ongoing.

Additionally, Experience Co highlighted that good headway has been made on business process projects. This includes implementing a new reservations system for the skydiving business and process improvements across corporate functions.

Management commentary

Commenting on today’s update, CEO John O’Sullivan said:

“The EXP team has been working extremely hard to design and implement COVID-19 operational processes and procedures since the Australian and New Zealand Government regulations came into effect. We are cautiously excited about recommencing our operations all the while recognising that the emergence is likely to be protracted and will require a sustained level of resilience across the business. Our goal remains to maintain a viable business and balance sheet, positioning EXP for when conditions improve.”

“At the time of suspending operations we noted that we were not in a position to forecast with any level of certainty the duration nor recovery profile from this pandemic. This remains the case and our continued strategy is to minimise short-term cash outflows,” he added.

More reading

• Where to invest $10,000 into ASX shares immediately
• Why Beach, Jumbo, ResMed, & WiseTech Global shares are dropping lower
• Why you shouldn’t fear an ASX share market crash
• Where will the Telstra share price be next year?
• Why the Blackmores share price is charging higher today

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of EXPERNCECO 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.

The post Why the Experience Co share price is flying 17% higher today appeared first on Motley Fool Australia.

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

The Telstra Corporation Ltd (ASX: TLS) share price has slumped lower in 2020 but where is it headed in the next year?

What’s been happening with Telstra in 2020?

It’s been a bit of a rollercoaster for Telstra shareholders in recent years.

In fact, the Aussie telco’s share price has shed over 48% in the last 5 years including nearly 10% this year. However, the S&P/ASX 200 Index (ASX: XJO) is down 11.58%, at the time of writing. This means Telstra is actually outperforming right now.

Notwithstanding, the recent share price falls are largely as a result of increased competition from NBN Co which has hit Telstra’s earnings hard.

Telstra has also changed its dividend policy in recent periods. This comes after having famously paid out close to 100% of profits throughout the 2000s.

This change, along with the coronavirus pandemic, has spooked investors and sent the Telstra share price tumbling. That means the Aussie telco could be in the buy zone at $3.22 per share.

I think the current climate could accelerate Telstra’s transformation plans. The Telstra 2022 strategy was designed to slash costs and make Telstra into a more focused, efficient telco.

While COVID-19 has thrown a spanner in the works for those plans, Telstra services are still in high demand. More workers at home is increasing the need for mobile infrastructure and stronger networks. 

That’s good news for Telstra and could help maintain earnings when August rolls around.

Will the Telstra share price climb higher?

The Telstra share price is sitting at $3.22 per share which is a far cry from its 52-week high of $4.01. Things are clearly different compared to the start of the year but Telstra is still a strong ASX dividend share with a current yield of 3.15%.

No one knows exactly where the telco’s share price will be in the next 12 months. I think the 5G network is the key to the telco’s success over the medium to long-term.

If Telstra can corner the market with this, its share price could be on the rise by May 2021. However, there’s still strong competition and a challenging market which means there’s plenty of uncertainty ahead this year.

Foolish takeaway

I think the Telstra share price could outperform the S&P/ASX 200 Index in 2020 and continue to be a strong dividend share next year.

More reading

• Why you shouldn’t fear an ASX share market crash
• 3 ASX shares Warren Buffett couldn’t ignore today
• What would $50,000 invested in the ASX 200 a decade ago be worth today?
• Is the Transurban share price a buy today?
• Should you ever buy ASX shares at an all-time high?

Motley Fool contributor Ken Hall 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.

The post Where will the Telstra share price be next year? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Ad41Nl

The Blackmores Limited (ASX: BKL) share price has returned from its trading halt and is pushing higher.

At the time of writing the health supplements company’s shares are up 2% to $80.50.

Why was Blackmores in a trading halt?

Blackmores requested a trading halt on Wednesday while it undertook a capital raising which aimed to raise up to $117 million.

These funds were being raised to strengthen its balance sheet and liquidity position, support its activities in the Asia market, and invest in its efficiency program.

This morning the company revealed that it has successfully completed the $92 million fully underwritten institutional placement component of the capital raising.

Blackmores has issued approximately 1.3 million new shares to institutional investors at a price of $72.50 per share. This represented an 8% discount to its last close price.

The company revealed that the placement generated significant interest from existing institutional shareholders and other institutional investors.

Blackmores Chief Executive Officer, Alastair Symington, commented: “We are pleased with the demonstration of support shown by our institutional shareholders and other institutional investors for the Placement. We believe our capital management initiatives put us in a position of strength to focus on our strategic priorities and help us achieve our objective of returning Blackmores to sustainable, profitable growth.”

The company will now push on with its share purchase plan. This aims to raise a further $25 million. Eligible shareholders can apply for up to $30,000 of new shares.

Trading update.

In case you missed it, on Wednesday the company also provided the market with an update on its performance during the pandemic.

While Blackmores has experienced a material increase in demand for its immunity products, this has been offset by weakness in other areas of the business.

Nevertheless, the company remains on track to achieve its guidance for FY 2020. It expects underlying net profit after tax to be $17 million to $21 million this year.

Although this will be a massive year on year decline, management appears optimistic that better days are coming thanks to this capital raising.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 edges down, bank share prices fly
• Why the Blackmores share price is in a trading halt
• 2 quality ASX shares to buy for long-term growth
• ASX shares and investing trends that could boom post COVID-19

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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 Why the Blackmores share price is charging higher today appeared first on Motley Fool Australia.

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