The Todd River Resources Ltd (ASX: TRT) share price has risen by 50% to $0.039 since it came out of a trading halt on Wednesday. This follows an announcement on Wednesday morning related to an acquisition that the company labelled as “highly prospective”.

What did Todd River Resources announce?

Todd River Resources announced on Wednesday that it had entered an agreement to acquire 100% of 2 private companies – Marlee Base Metals Pty Ltd and Moonknight Pty Ltd. Following the acquisitions, the company will hold a 270km² land position in the South West Yilgarn Craton, Western Australia.

According to the announcement, this land has numerous nickel-copper bodies over more than 40km of strike extent. The key project area is the Berkshire Valley Project, which is located 100km north of a recent discovery of nickel, copper and platinum at Julimar by Chalice Gold Mines Limited (ASX: CHN).

One of the acquisitions also includes the ownership of 3 additional nickel, cobalt and copper targets in Western Australia. 

The company will pay cash of $100,000 for the acquisitions along with scrip of 100,000,001 Todd River Resources shares. A director from one of the companies acquired, Ian Murray, also the former managing director of Gold Road Resources Ltd (ASX: GOR), will join the Todd River Resources board.

The transaction will be subject to shareholder approval at an extraordinary general meeting. If the transaction is approved, the company plans to start exploration immediately.

How has Todd River Resources performed recently?

Todd River Resources is an exploration company that holds a portfolio of base metals and gold exploration assets in Australia.

According to the company’s most recent quarterly report, Todd River Resources ended the quarter with $1.55 million in cash (as at 31 March 2020). In that quarter, the company completed design of geological programs that were ready to be implemented at its Nanutarra Nickel and Mt Hardy projects. Additionally, while there had been some delay in exploration at Mt Hardy due to travel restrictions, an aircore drilling program to test extension of a known anomalism had been designed and was planned to be commenced in the third quarter. 

Due to the economic impacts of the coronavirus, directors of the company saw a 40% pay cut for the final quarter of the 2020 financial year. The company predicted that spending would be subdued for the next 2 quarters, but that it would recommence exploration activities at the earliest opportunity. 

About the Todd River Resources share price

At the time of writing, Todd River Resources shares are up 387.5% from their 52-week low of $0.008 cents. The Todd River Resources share price has returned 95% since the beginning of the year, but is down by 2.5% since this time last year. 

More reading

• Why the Afterpay share price zoomed to a new record high today
• Is the Vanguard Property ETF a good long-term investment?
• Osteopore share price storms 270% higher on distribution deal
• Is the Oil Search share price worth buying?
• Temple & Webster share price at an all-time high after capital raise

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

The post Todd River Resources share price up 50% in 2 days after acquisition news appeared first on Motley Fool Australia.

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

The Afterpay Ltd (ASX: APT) share price has been a very impressive performer once again on Thursday.

This afternoon the payments company’s shares have charged 7.5% higher and reached a new record high of $66.97.

Why is the Afterpay share price at a new record high?

Investors have been buying the company’s shares again on Thursday after it was the subject of a positive broker note out of Citi.

Although the broker has retained its neutral rating on the buy now pay later platform provider’s shares, it has more than doubled its price target on them.

Citi has lifted its price target to $64.25 from $27.10 after upgrading its earnings estimates materially. This follows its impressive growth in the UK and United States and its belief that Afterpay will benefit from the acceleration in the shift to online shopping.

Costa retains its buy rating.

Afterpay isn’t the only company that Citi has given a boost to on Thursday.

The Costa Group Holdings Ltd (ASX: CGC) share price is up 7% this afternoon after the broker retained its buy rating and $3.40 price target on the horticulture company’s shares.

The broker notes that wholesale prices of many key products were very strong in Australia in June. It also points out that global citrus pricing trends have been favourable recently.

Whitehaven upgraded.

And finally, the Whitehaven Coal Ltd (ASX: WHC) share price is up over 5% at the time of writing. This could also have been driven by a broker note out of Citi.

On Wednesday the broker upgraded the coal miner’s shares to a buy rating from neutral with a $1.75 price target. It feels that thermal coal prices have dropped to a level that will lead to some producers curtailing production in an effort to boost prices.

More reading

• Why Afterpay, Bigtincan, Dicker Data, & NIB shares are racing higher
• ASX 200 up 0.9%: Citi lifts Afterpay price target, Webjet boosts liquidity
• What’s next for WAAAX shares?
• Can the Afterpay share price climb another 150% in FY21?
• 10 FY21 ASX share picks revealed by Bell Potter

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of AFTERPAY T 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 Afterpay share price zoomed to a new record high today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38iL7lj

Should investors looking for ASX dividend income consider Vanguard Australian Property Securities Index ETF (ASX: VAP) in 2020?

This exchange-traded fund (ETF) from the reputable Vanguard Group invests in ASX-listed real estate investment trusts (REITs), using the S&P/ASX 300 A-REIT index as a benchmark.

REITs are companies that have the majority of their assets invested in land, property, and housing assets, of which they receive a rental income. For a REIT, 90% or more of this rental income is usually required to be distributed every year to their investors, without tax paid at the corporate level. This unique system translates into a good chance that a top-quality REIT will offer a generous trailing distribution yield — albeit without the benefits of franking credits (as no company tax has been paid). This inherently makes REITs a popular choice for income investors.

Which ASX REITs does VAP hold?

At the time of writing, this Vanguard ETF holds 30 ASX REITs. The 5 largest holdings are as follows:

1. Goodman Group (ASX: GMG) with a 23.55% weighting
2. Scentre Group (ASX: SCG) with an 11.34% weighting
3. Dexus Property Group (ASX: DXS) with a 9.32% weighting
4. Mirvac Group (ASX: MGR) with an 8.89% weighting
5. Stockland Corporation Ltd (ASX: SGP) with an 8.31% weighting

Some more prominent holdings you might have come across include National Storage REIT (ASX: NSR), BWP Trust (ASX: BWP), Rural Funds Group (ASX: RFF) and Unibail-Rodamco-Westfield (ASX: URW).

As a whole, the ETF’s median market capitalisation is $9.24 billion. Its average price-to-earnings (P/E) ratio comes in at 11.09 and the trailing dividend yield at 5.86%.

Is VAP a good investment for income?

With a trailing dividend/distribution yield of 5.86%, on the surface, VAP looks to be a top ASX share to own for dividend income. With interest rates at record lows, achieving a near-6% yield on investment sounds like a pretty good deal. However, this trailing yield may not be reflecting the current commercial environment for the REIT sector. Many of VAP’s holdings operate in the retail sector. Scentre Group, as an example, owns the Westfield-branded chain of shopping centres in Australia and New Zealand. Retail shops are still emerging from one of the most disruptive and damaging times in the history of Aussie retail. Many shopping centres would have been almost completely closed over the March and April months. This would have led to foregone rental payments to landlords like Scentre. In turn, this places enormous pressure on the REITs’ abilities to pay dividends at all.

Most ASX REITs haven’t yet told the market what their intentions regarding dividend payments are for the rest of 2020. But I’m expecting, at the very least, a significant dip for investors.

Going beyond 2020, I would expect things to get somewhat rosier. But we have to consider that the retailing landscape may have changed forever as a result of the coronavirus pandemic. As such, I think a better strategy is to find your favourite REITs within this ETF and invest in those separately, rather than buying this comprehensive index fund.

More reading

• The impact of housing figures on real estate shares
• Replace your term deposits with these ASX dividend shares
• Amazon defends new Sydney warehouse as ’employment creator’
• 10 FY21 ASX share picks revealed by Bell Potter
• These ASX 200 shares were the worst performers of FY20

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Scentre Group. 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 Is the Vanguard Property ETF a good long-term investment? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38vmUbD

The Osteopore Ltd (ASX: OSX) share price rocketed as much as 270% higher at one point today, after the company announced it has signed a distribution agreement that opens up the potentially lucrative US market.

Why is the Osteopore share price surging?

Earlier this morning, Osteopore announced that the company has signed a non-exclusive, 2-year agreement with established US market leader Bioplate Inc. The agreement will see Bioplate help Osteopore sell its patented 3D printed, bioresorbable products for cranial and neurosurgery procedures. The distribution agreement covers 6 states in the US market and Bioplate will cover all technical support requirements for Osteopore’s products.

The agreement with Bioplate is Osteopore’s first distribution agreement since the company’s IPO in 2019. Bioplate has over 20 years of experience in providing cranial fixation solutions and will provide Osteopore with an established network of health professionals, hospitals and health services in the US.

According to Osteopore, the graft substitute market is worth around US$4 billion, with sales of permanent implants estimated at over US$100 million annually. Osteopore believes that penetrating the US market is a key strategic objective, with US demand accounting for a large portion of the global demand.

What does Osteopore do?

Osteopore is an Australian and Singapore-based medical technology company that has commercialised a range of patented, 3D printed bioresorbable products. These 3D printed implants act as a scaffold for bone growth and can be used across various surgeries. As opposed to traditional bone grafts, Osteopore’s implants naturally dissolve over time, leaving only health bone tissue.

According to Osteopore, the company’s protective implants can reduce post-surgery complications by reducing the risk of secondary infections. All 3 of Osteopore’s products (Osteoplug, Osteomesh and Osteostrip) have received FDA approval in the US and are being sold to hospitals around the globe.

Earlier this year, Osteopore reported a 60% increase in revenue for the quarter ending March 2020. The company generated $321,00 in revenue for the quarter whilst also receiving approval from the Australian Therapeutic Goods Administration for several of its craniofacial products.

Foolish takeaway

Following a pause in trading mid-morning, shares in Osteopore resumed trading and are up more than 150% at the time of writing. The Osteopore share price hit an intra-day high of $1.49 earlier, representing a gain of more than 270% for the day.

More reading

• Is the Oil Search share price worth buying?
• Temple & Webster share price at an all-time high after capital raise
• Top brokers name 3 ASX 200 shares to sell right now
• Why the Kathmandu share price is up 11% today
• Why Afterpay, Bigtincan, Dicker Data, & NIB shares are racing higher

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

The post Osteopore share price storms 270% higher on distribution deal appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2VEMA01

Oil Search Limited (ASX: OSH) is an LNG producer operating out of Papua New Guinea. The company has recently announced it will have reduced its workforce by 34% by the end of this calendar year. The impetus for this has been the dramatic and sustained reduction of oil prices. However, this is not the end of the story. No matter how you look at it, the Oil Search share price has had a terrible year so far.

2020 in review

Oil Search entered the new year with a new Managing Director, Dr Keiran Wulff. He replaced Mr Peter Botten, who led Oil Search for an amazing 25 years. During this time, Mr Botten took the company from $250 million in market capitalisation to around $11 billion.

In February this year, Oil Search announced that talks with the PNG government on the P’nyang Gas Agreement had stalled. This was a complex joint venture arrangement with Exxon Mobil Corporation and Santos Ltd (ASX: STO) which the company had been touting for several years.

Even though the project has not been entirely abandoned, the delay has already had a significant impact. As noted by Wood Mackenzie research director Angus Rodger:

“…From both a macro pricing and a contractor quality/pricing perspective, trailing in the wake of the biggest wave of new LNG supply the industry has ever seen is not ideal.”

In other words, Oil Search has already lost the window for enabling forward contracts to be written at prices to maximise profits.

Shortly after this disappointing development came the pandemic and associated restrictions in March. This was followed very closely thereafter by the Saudi/Russian oil price feud. 

By April, Oil Search had a new Managing Director, the loss of major revenue-generating infrastructure, and an oil price that was getting closer to the company’s rising production unit costs. It really doesn’t get much worse than this.

Oil Search’s response

In response to these headwinds, Oil Search has totally reshuffled its executive leadership team. There is a clear focus on efficiency, operational excellence, and leveraging technology. As a result, the company’s production costs are expected to be approximately US$10.50 per barrel of oil equivalent (BOE) as opposed to the USD$11 – $12 initially forecast. Moreover, all non-essential capital expenditure has been suspended or deferred in PNG. 

At the time of writing, the LNG spot price has just come off its lowest point for 25 years due to an oversupply and reduced demand resulting from warmer than usual winter temperatures. Oil Search does, however, only have less than 10% of its current production exposed to spot prices.

It was also able to raise US$700 million through a share placement. On 5 May, Oil Search was forecasting a liquidity of US$1.8 billion in cash and no near-term debt maturities.

Foolish takeaway

It is currently trading at a price to earnings (P/E) ratio of 11.08, however the Oil Search share price remains down 54% year to date. I feel the discipline the company has shown in managing its costs and curbing expansions has been impressive. So much so that I’m starting to think this could be one of the great turnaround companies of the year.

Nonetheless, I do think low LNG and oil prices will stick around a while longer, particularly with demand remaining low and coronavirus trends turning upwards. This could definitely put a dampener on the near to medium-term performance of the Oil Search share price. 

Having said that, investing in Oil Search today will get you a trailing 12 month dividend yield of 4.26%. I also think you will likely see some share price growth. Although it is hard for me to see it returning to its former price range until future significant reserves are planned to come online at a profitable price.

More reading

• 5 things to watch on the ASX 200 on Thursday
• These ASX 200 shares were the worst performers of FY20
• 5 things to watch on the ASX 200 on Wednesday
• Morgans picks the best FY21 ASX buys for the COVID-19 world
• 5 things to watch on the ASX 200 on Tuesday

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

The post Is the Oil Search share price worth buying? appeared first on Motley Fool Australia.

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

The Temple & Webster Group Ltd (ASX: TPW) share price surged almost 14% in today’s early trade. Shares in the online retailer rocketed after announcing the completion of its capital raise.

Why did Temple & Webster raise capital?

Earlier today Temple & Webster released an announcement informing the market that the company has successfully executed a $40 million share placement. The company placement of 7 million new fully-paid ordinary shares issued at $5.70 per share saw strong investor demand. 

The company raised new capital to increase financial flexibility and continue the structural shift online, despite being debt-free with around $30 million in cash. Temple & Webster management noted that the capital raise will allow the company to make further investments in its growth strategy, whilst also improving its technology, product and service offerings.

How has Temple & Webster performed during the pandemic?

In a brief business update released yesterday, Temple & Webster acknowledge that strong demand has continued into June with gross sales to the 28 June surging 130% year-on-year. In mid-June, the online retailer reported a 668% increase in year-to-date EBITDA of $7.1 million. Additionally, Temple & Webster reported a 68% increase in year-to-date revenue of $151.7 million.

Temple & Webster has thrived during the coronavirus pandemic with many shoppers switching to online channels during the lockdown period. The company noted strong operating leverage, reporting a 68% increase in active customers of 440,257 YTD, up from 335,000 at the end of December.

The company is confident consumers who started shopping online during the pandemic will continue shopping online, even when all stores reopen. As a result of changing consumer preferences and demographics, Temple & Webster looks to continue its sales growth by investing in longer-term initiatives.

Foolish takeaway

Temple & Webster is Australia’s largest online retailer of furniture and homewares, boasting more than 150,000 products for sale. The company is able to offer a broad product range thanks to its innovative drop-shipping model. This model allows products to be sent directly to consumers from suppliers.

Temple & Webster shares fell as low as $1.57 during the market sell-off in March but have rebounded strongly. At the time of writing the company’s share price is trading near all-time highs around $7.

More reading

• Temple & Webster share price quadrupled in FY20
• E-commerce is the COVID-19 success story. These businesses are the clear winners.
• These ASX retail shares are lockdown winners
• Short-sellers are stepping up their attack against these popular ASX shares
• Temple & Webster shares continue to grow despite coronavirus restrictions

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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 Temple & Webster share price at an all-time high after capital raise appeared first on Motley Fool Australia.

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

On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX 200 shares that have just been given sell ratings by brokers are listed below.

Here’s why these brokers are bearish on them:

Suncorp Group Ltd (ASX: SUN)

According to a note out of Credit Suisse, its analysts have downgraded this insurance and banking giant’s shares to an underperform rating and cut the price target on them to $8.75. The broker believes Suncorp’s earnings growth will be challenging in the future and is forecasting lower than target return on equity. And while it has just announced a new operating model, it doesn’t appear overly convinced that this will be enough and is expecting further changes. The Suncorp share price is trading at $8.85 this afternoon.

Tabcorp Holdings Limited (ASX: TAH)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted the price target on this gambling company’s shares slightly to $2.80. The broker has lifted its earnings estimates very slightly to reflect the new reseller agreement with Jumbo Interactive Ltd (ASX: JIN). However, it feels Tabcorp could have got a better deal. As a result, it sees no reason to make any changes to its rating and feels its shares are expensive at the current level. The Tabcorp share price is trading notably higher at $3.42 this afternoon.

Webjet Limited (ASX: WEB)

Analysts at Morgan Stanley have retained their underweight rating and $3.30 price target on this online travel agent’s shares. This follows the announcement of a $163.1 million convertible note offering which will be used to repay debt and fund potential acquisitions. While this will boost its liquidity, which has decreased markedly over the last few months, it isn’t enough for a change of rating. Morgan Stanley continues to believe Webjet’s shares are overvalued. The Webjet share price is fetching $3.59 on Thursday.

More reading

• ASX 200 up 0.9%: Citi lifts Afterpay price target, Webjet boosts liquidity
• Why De Grey, Resolute, Suncorp, & Webjet shares are dropping lower
• Fund managers have been snapping up Sonic and these ASX 200 stocks
• Down 32% in FY20, is the NAB share price a buy this year?
• Webjet share price on watch after boosting its liquidity

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited and Webjet 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 Top brokers name 3 ASX 200 shares to sell right now appeared first on Motley Fool Australia.

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

Kathmandu Holdings Ltd‘s (ASX: KMD) share price has surged 11% so far today on the back of its market update. Kathmandu is a retailer in Australia and New Zealand selling travel and outdoor adventure apparel and equipment. 

The surge in the Kathmandu share price comes with same-store sales growth returning to positive through stores re-opening, a shift to online shopping and a strengthened balance sheet with April’s equity raising. However, the group remains cautious about the demand over the medium-term given the potential of a second coronavirus wave.

Sales update pushes Kathmandu share price

For the 10 months ended 31 May 2020, total group sales were 15.1% below the comparable period last financial year. However, the group’s retail and online sales exceeded management expectations since stores began re-opening with the exception of airport stores which remain closed.

The increase in sales is a reflection of the easing of restrictions and has strengthened the group’s liquidity.

The group’s 2 businesses; Rip Curl and Kathmandu’s same-store sales were up 21% and 12.5% respectively for the last 6 weeks to 28 June 2020, adjusted for closed stores.

Pleasingly, online sales have made a material contribution to the increase seen in both businesses. This is in addition to a market update released in May reporting a surge in online sales. 

However, Kathmandu saw May wholesale sales impacted by COVID-19. Rip Curl global wholesale sales were 26% below the comparable 7-month pre-ownership period last financial year.

Successful equity raise

Kathmandu completed a successful NZ$207 million equity raising in April helping to strengthen its balance sheet. The group expects total liquidity in excess of $300 million at the end of this financial year. The business came to this expectation based on its assessment of the operating environment. 

Outlook

Kathmandu expects FY20 earnings-before-interest-taxation-depreciation-amortisation (EBITDA) to be above $70 million. Its gross margin is expected to be in the lower end of the 61%–63% target range. 

The group is concerned about the end to government stimulus measures, the second coronavirus wave currently experienced in Melbourne and the impact of foot traffic in tourist located stores.

Chief Executive Officer, Mr Simonet commented:

“Whilst we are pleased with the strong recovery in direct recovery in direct to consumer sales over the past six weeks, we remain cautious about the medium-term levels of consumer demand. We believe that some short term factors, including government support packages and pent up demand are underpinning current sales. The heightened uncertainty that currently exists is likely to persist…”

Similarly, in the May update, the group reported the closure of the store network had a material adverse impact on FY20 earnings.

More reading

• Why the Lovisa share price is at risk of falling further over the coming weeks

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

The post Why the Kathmandu share price is up 11% today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ZrD2GJ