The Buddy Technologies Ltd (ASX:BUD) share price has continued its impressive run as once again it broke its record for orders of smart lights. The Buddy share price is currently trading 3.75% higher at 83 cents.

Smashing orders

It seems not long ago that I was writing about the last time Buddy announced record smart light orders. Sure enough, less than 3 weeks ago, the Buddy share price soared 19% as they hit light orders of $4.3 million. Nonetheless, that record has been swiftly eclipsed as the company announced orders of $10.5 million for its smart lights.

The record number of orders are aimed to help meet 4th calendar quarter holiday demand in Europe and North America. They exclude the LIFX Clean and LIFX Switch, with both expected to be ordered separately and subsequently. The Buddy share price exploded as the LIFX clean was announced in late August. 

Buddy CEO David McLauchlan described 2020 as “a remarkable year of disruption and dislocation, none more so than for our Melbourne-based team who have admirably kept up an amazing level of productivity and good spirits despite the COVID-19 curfews and lockdown in place there. Their efforts, and the patience and support of our shareholders, is being rewarded with orders flowing in, and the company now having more lights currently in the process of being manufactured and shipped, than at any other time in the company’s history.”

What does Buddy do?

Founded in 2006, Buddy Technologies provides cloud-based technology that aims to make its customers’ work and living spaces smarter, via IoT connected devices.

Buddy’s consumer business trades under the LIFX brand and is a provider of smart lighting solutions. The company has a wide portfolio of Wi-Fi enabled lights that are used in nearly 1 million homes and sold in more than 100 countries.

Where to now for the Buddy share price

The Buddy share price has been driven by good news in recent months capped off by its impressive results in late August. The light manufacturer’s share price is now up a huge 105% for the year.

More reading

• The Buddy share price is up 33% higher today. Here’s why
• Buddy share price leaps 18% following letter to shareholders
• Buddy share price soars 19% on record orders

Motley Fool contributor Daniel Ewing 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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If you’re looking for a reliable source of income in these uncertain times, then I think the ASX dividend shares listed below would be great options.

Both look well-positioned to continue paying their dividends as normal over the coming years despite the pandemic. Here’s why I think they are among the best on offer on the ASX right now:

BWP Trust (ASX: BWP)

The first reliable dividend share to buy is BWP. It is a real estate investment trust (REIT) that invests in and manages commercial assets which are predominantly leased to home improvement giant, Bunnings Warehouse.

Given the strength of the Bunnings business and the fact that the retail giant is owned by major BWP shareholder Wesfarmers Ltd (ASX: WES), I believe the REIT is well-positioned to grow its income and distribution at a consistent rate over the next decade. Based on the current BWP share price, I estimate that it offers investors a forward 4.4% yield.

Rural Funds Group (ASX: RFF)

Rural Funds is an agriculture-focused property company which aims to grow its distribution by 4% per annum over the long term. The good news is that I believe it is well positioned to deliver on this thanks to its high quality portfolio of assets and its ultra long tenancy agreements.

In respect to the latter, at the end of FY 2020 the company’s weighted average lease expiry stood at almost 11 years. What’s even better is that these leases contain fixed rental increases. Barring some extraordinary events, this almost guarantees a growing and reliable rental income stream over the next decade. In FY 2021, management intends to increase its distribution by 4% to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a 5% yield.

More reading

• Smash low interest rates with these high yield ASX dividend shares
• New to investing? Here are 5 ASX dividend shares to buy now
• Forget Westpac’s term deposits and buy these ASX dividend shares
• 3 ASX shares every retiree should own
• How to earn a passive income of $50,000 with ASX dividend shares

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

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There is something of a consensus going around the ASX circles that there are ‘no cheap shares left’ in this market right now – or at least no cheap shares left that aren’t cheap for a reason. But often it’s this ‘reason’ which is worthy of examination. Sometimes the market makes assumptions about a particular ASX share which don’t turn out to be all that dire. So here are 2 beaten-down cheap ASX shares that I think the market might be undervaluing today. These companies aren’t perfect but could be a good fit for the right investor at today’s prices.

1) Telstra Corporation Ltd (ASX: TLS)

Telstra shares are unquestionably cheap right now. At the time of writing, Telstra is trading for $2.87. That’s just a touch off the company’s new 52-week low of $2.81 made last week, and a long way from the 52-week high of $3.94 that Telstra was asking back in February. So why are Telstra shares stuck in the doldrums?

Well, sentiment around the telco has been ebbing since the release of its FY2020 earnings report last month. Telstra disappointed with its guidance for FY21, which implied that the company would have to trim its dividend due to the likelihood it would exceed its earnings payout target. Still, I think there’s a good chance Telstra will keep its 16 cents per share payout steady by switching to a free cash flow metric rather than earnings. The company estimates it will have more than enough free cash flow to cover a 16 cents per share payout in FY21 and beyond.

As such, I think the trailing dividend yield of 5.55% that Telstra offers today comes very cheap and makes for a great deal for a dividend investor.

2) Newcrest Mining Limited (ASX: NCM)

Newcrest is our second cheap share today. As the ASX’s largest gold miner, Newcrest shares should theoretically be benefitting from the highest gold prices we have ever seen in 2020 so far. Even today, the gold price is sitting at around US$1,946 an ounce, well above the previous all-time high of US$1,921 that held from 2011 until this year. And that’s after it climbed all the way up to $US2,061 an ounce early last month. Even on today’s pricing, gold is up around 28% for the year. Yet Newcrest shares are only up 6.91% over the same period and are going for $31.85 at the time of writing.

I think the factors that have pushed gold higher in 2020 – namely the massive amount of central bank stimulus going into economies around the world – are here to stay for at least a few years. Therefore, I think the gold price has the potential to push even higher as a result. From where I’m standing, that makes Newcrest shares fairly cheap today. Therefore, I think this company could make a good buying opportunity, particularly if you want to add some counter-cyclical weight to your portfolio that a gold miner can provide.

More reading

• Whispir (ASX:WSP) share price sinks 9.5% lower on major shareholder sell-down
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Why the Telstra share price is a good buy for dividends
• 3 ASX shares for growth, income, and value investors to buy right now

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining Limited and Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Jaxsta Ltd (ASX: JXT) share price is latest market minnow to grab attention following the spectacular rise of the Brainchip Holdings Ltd (ASX: BRN) share price.

The Jaxsta share price rocketed by over 300% to 11 cents during lunch time trade after it announced a $1.9 million deal with Songtradr.

Under the five-year agreement, Songtradr will pay an upfront licence fee of $500,000 to Jaxsta. In return, Songtradr will have the opportunity to provide a revenue identification and collection service for Jaxsta Pro users.

Convertible note already in the money

The service identifies missing performer income from sound recordings (“Neighbouring Rights”), which should prove popular in this COVID-19 environment with many musicians out of work.

Songtradr will also invest $1.4 million in Jaxsta through a three-year convertible note. The investment is already paying off given that Songtradr can convert the debt to Jaxsta shares at 3.5 cents a pop.

Big dilution could impact on Jaxsta’s shares

If Songtradr elected to convert the entire investment into shares, there will be an extra 40.6 million shares in Jaxsta. That’s a big dilution as that represents around 16% of Jaxsta’s current share base.

However, the cash from the investment will come in handy even though it attracts a 7.5% interest rate.

Also, Jaxsta’s shareholders won’t be complaining as its share price was wallowing at 2.6 cents before the deal was announced.

Still sounding sweet to investors

Additionally, the transaction gives Jaxsta a new income stream as it can collect 20% of net Neighbouring Rights revenues received by Songtradr from Jaxsta users adopting the service after recoupment of the license fee.

“We believe this new revenue-generating product will also drive increased adoption of Jaxsta Pro subscriptions,” said Jacqui Louez Schoorl, CEO and Co-Founder of Jaxsta.

“This partnership with Songtradr highlights the significant opportunities that exist in solving the data-centric challenges faced by the music industry.”

Striking a high note

Jaxsta believes the global Neighbouring Rights market is worth a around US$2.6 billion ($3.6 billion).

“​Ja​xsta has solved a significant piece of the music industry data dilemma and has built a scalable technology solution that integrates neatly into our music rights ecosystem and licensing marketplace,” said Songtradr CEO Paul Wiltshire.

Songtradr claims to be the largest B2B music licensing marketplace in the world. It provides music creators with a rights management and monetisation solution so that they can get paid whenever an advertiser, or media/gaming company uses their music.

Despite the big surge in the JXT share price today, the stock is still down by around 15% since the start of calendar 2020.

More reading

• Why the DroneShield (ASX:DRO), BrainChip (ASX:BRN) and Recce (ASX:RCE) share prices are rising today
• If the ASX BNPL party is over, what’s next?
• 4DS Memory (ASX:4DS) share price rockets 46% higher today
• Why Brainchip (ASX:BRN) shares are topping the ASX today
• Brainchip (ASX:BRN) share price jumps 15% after ASX query

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

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The IDP Education Ltd (ASX: IEL) share price has been a positive performer on Thursday.

In afternoon trade the student placement and language testing company’s shares are up 3% to $19.37.

Why is the IDP Education share price charging higher?

Investors have been buying IDP Education’s shares today after it was the subject of a positive broker note out of Goldman Sachs.

According to the note, the broker has retained its buy rating and lifted its price target by 32% to $22.50.

Even after today’s gain, this price target still implies potential upside of more than 16% over the next 12 months.

Why is Goldman Sachs bullish on IDP Education?

Goldman notes that IDP Education is well positioned for the eventual restart of the international student market.

It also believes that trading conditions are continuing to improve. Its research appears to support the view that there has been a continuation of the utilisation recovery of the International English Language Testing System (IELTS) network from the 55% reported as at mid-August.

And while it expects a recovery to pre-COVID volumes to take until in FY 2022, it believes it is well worth sticking with the company until then.

Especially given positive indicators such as the UK starting to open up international travel and pilot programs being discussed in South Australia and the Northern Territory for international students to re-enter Australia.

A positive future.

It is IDP Education’s long term prospects that most excites analysts at Goldman Sachs.

They note that it is a leading player exposed to long dated structural tailwinds in international education and well positioned to increase its market share in the fragmented student placement market.

The broker also sees opportunities from a potential restructure of the IELTS agreement and for further bolt-on acquisitions.

Should you invest?

I agree with Goldman Sachs and believe IDP Education would be a great long term option for investors right now.

Though, at 46x estimated FY 2022 earnings, it certainly isn’t a bargain buy. So I would suggest investors restrict an investment to just a small part of a balanced portfolio.

More reading

• Why Afterpay, Clinuvel, IDP Education, & Saracen shares are charging higher
• Why the IDP Education share price rocketed 50% higher in August
• These were the best performing ASX 200 shares in August
• How to become rich by investing $1,000 into ASX shares
• These ASX shares were top performers last week

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 Idp Education Pty Ltd. 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 Wesfarmers Ltd (ASX: WES) share price has had a phenomenal year in 2020 so far. Wesfarmers shares are today trading at $45.04 at the time of writing. That’s a good 9% higher than they were at the start of the year and 45.5% above the lows we saw on 23 March. Considering the S&P/ASX 200 Index (ASX: XJO) is still 11.7% below where it was at the beginning of January, shareholders don’t have a lot to complain about the Wesfarmers share price from where I’m standing. Part of Wesfarmers’ appeal is its strong reputation as a solid, reliable dividend-paying share.

Seeing as 2020 has so far been almost defined as the year of the dividend cut (or suspension, deferral or cancellation), I thought it would be a good time to reexamine this ASX blue chip for its current and future income potential.

What is Wesfarmers?

Wesfarmers is one of the largest companies on the ASX. It is a massive conglomerate and quite a unique company among the ‘big players’ on the ASX. It is primarily a retailer – most of Wesfarmers’ earnings come from the Bunnings Warehouse chain of hardware stores. This is augmented by its OfficeWorks chain, as well as Kmart and Target. The company used to also own Coles Group Ltd (ASX: COL), but has spent the last 2 years or so offloading its’ Coles shares. It now only retains about 5% of the grocery company.

But that’s far from where Wesfarmers’ pies end. It also owns a bevvy of other businesses including chemical and fertiliser manufacturing facilities, a lithium miner, a work clothing line and a gas distribution business. This is about as diversified a business as they come.

What kind of dividends does Wesfarmers pay?

Wesfarmers’ recent dividend history has been very patchy. This is largely due to the lumpy special dividends the company has been periodically doling out over the last couple of years. These have mostly been funded from the Coles sale, which has been especially lucrative for Wesfarmers shareholders.  They also all received one COL share for every WES share owned back in November 2018.

So in 2019, Wesfarmers paid out an interim dividend of $1 per share and a final dividend of 78 cents per share (cps), as well as a special $1 per share dividend.

In 2020, the company has kept the train on the tracks (albeit at a slower speed). It has paid an interim dividend of 75 cps and a final dividend of 77 cps, as well as a special dividend of 18 cps. The final and special dividends will hit investors’ bank accounts on 1 October.

$1.52 in annual dividends gives Wesfarmers a fully franked yield of 3.36% on current prices, or  3.76% if we include the special dividend. Including Wesfarmers’ full franking credits, these numbers gross-up to 4.8% and 5.37% respectively.

Is this yield worth a buy today?

Whilst those yields are respectable, I don’t think they are anything to write home about. The Wesfarmers share price is today quite expensive in my opinion, trading at a price-to-earnings (P/E) ratio of 31.53. If I was desperate for a decent dividend payer, I would consider the Wesfarmers share price a buy. But if you are able to wait, I think there will likely be a better buying opportunity down the road.

More reading

• ASX 200 up 0.7%: Nearmap (ASX:NEA) launches capital raising, Afterpay (ASX:APT) rebounds
• Should you ‘buy the dip’ with ASX shares?
• Should you buy Bega Cheese (ASX:BGA) shares at near an all-time high?
• An all-weather ASX resources shares strategy
• 5 things to watch on the ASX 200 on Thursday

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

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Today has been very strong for a range of ASX sectors after yesterday’s market fall. We’ve seen the share prices of a number of innovative ASX growth companies rise today, including the 3 listed below.

DroneShield Ltd (ASX: DRO)

The Droneshield share price is up by 23.33% at time of writing.

The company provides non-ballistic detect and disrupt technology for defending against drones. It recently announced it had obtained funding from the US Department of Defence (DoD) for enhancements to its DroneShieldComplete Command-and-Control (C2) system. Previously, the company had made several announcements. First, relating to sales to 2 European nations, and second, to a successful deployment in a mid-sized European airport. This has also had an impact on the company’s share price.

At the conclusion of the project to enhance the DroneShieldComplete C2, the company anticipates selling additional products to the US DoD. DroneShield CEO Oleg Vornik said the project underscored the company’s leadership not only as a product/sensor manufacturer, but also as an integrator of fixed site and mobile counter unmanned aircraft systems.

Recce Pharmaceuticals Ltd (ASX: RCE)

Recce (pronounced Recky) is a medical research company developing a new range of synthetic antibiotics. Unlike current approaches, Recce’s products kill bacteria instead of inhibiting growth, enabling multiple use without a reduction in potency. 

Today the company announced it has selected South Australia’s CMAX Clinical Research as its independent trial facility. The laboratory will conduct a phase I clinical study of Recce’s lead compound RECCE 327.

This is a controlled ascending dose study of 48 healthy adult subjects, resulting in an evaluation of the safety and tolerability of the product after intravenous use. In response to the news, the Recce share price has risen by 3.14% at the time of writing. 

Brainchip Holdings Ltd (ASX: BRN)

The BrainChip share price is up by 3.33% at the time of writing, and has risen by 73.33% over the past 5 days.

BrainChip is an artificial intelligence (AI) company that has recently completed construction of the wafer of its newest product, a neuromorphic chip designed to mimic the human brain and sensory system.

The company has announced 2 proof of concept partnerships.

First, with Magik Eye Inc to combine AI with the Magik Eye’s 3D sensing. This partnership will be targeting gesture recognition in a wide array of gaming and consumer products. Second, the Brainchip share price jumped 54% after the company announced a partnership with VORAGO Technologies to support a phase 1 project for NASA.

More reading

• Why the Jaxsta share price rocketed by over 300% today
• DroneShield (ASX:DRO) share price has rocketed today
• If the ASX BNPL party is over, what’s next?
• 4DS Memory (ASX:4DS) share price rockets 46% higher today
• Why Brainchip (ASX:BRN) shares are topping the ASX today

Motley Fool contributor Daryl Mather owns shares of Recce Pharmaceuticals Ltd. 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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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 shares that have just been given sell ratings by brokers are listed below.

Here’s why these brokers are bearish on them:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and $17.20 price target on this infant formula company’s shares. Although it sees opportunities for the company to grow its market share in China significantly in the future, it has concerns over the resurgence of Chinese infant formula brands and regulatory risks in the lucrative market. In light of this and the premium its shares trade at, it is holding firm with its sell rating. The a2 Milk share price is trading lower than this price target at $16.54 this afternoon.

Platinum Asset Management Ltd (ASX: PTM)

Analysts at Goldman Sachs have retained their sell rating and $3.45 price target on this fund manager’s shares. This follows the release of its latest funds under management update earlier this week. Although its performance is tracking ahead of Goldman’s expectations, it isn’t enough for a change of rating just yet. The broker continues to see greater risks to its flows compared to other companies under coverage. The Platinum share price is changing hands for $3.34 today.

SKYCITY Entertainment Group Limited (ASX: SKC)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted the price target on this casino and resorts operator’s shares to NZ$2.90 (A$2.67). According to the note, the broker has concerns over SKYCITY’s Australian business and expects it to underperform. In light of this and its current valuation, it has held firm with its underweight rating for now. The SKYCITY share price is trading a touch higher than this price target at $2.74 this afternoon.

More reading

• Why you shouldn’t be concerned by the high PE multiples of ASX tech shares
• Are these the ASX growth shares to buy right now?
• A2 Milk (ASX:A2M) share price on watch after trading update
• Half of ASX 200 stocks at risk as China-Australia relations hit new low
• 3 ASX shares I’d buy to quickly add diversification

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Sky City Entertainment 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.

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Electro Optic Systems Holdings Limited (ASX: EOS) shares have reached higher today. The Electro Optic share price is up 1.87% after the company announced a resumed major overseas customer contract worth $150 million.

The news sent the company’s shares as high as $5.70 during the opening bell, before they settled back to $5.44 at the time of writing.

What did Electro Optic announce?

Electro Optic advised it has achieved a key step in restoring cash flow on the back of re-initiation of a major overseas contract.

A team of senior engineers from the company have travelled to an overseas delivery point to commence delivery and testing. The products are valued at $150 million and the revenue will be a welcome relief to the company as it reported a meek FY20 result.

Electro Optic was previously affected by product delivery and acceptance delays. The closure of airports and borders, travel prohibitions and lockdown of the company’s facilities saw an immediate revenue decline.

The global defence contractor noted that international freight capacity is now operating back to sufficient levels. Over $100 million worth of Electro Optic products have been exported with an additional $150 million to be delivered in the next 6-8 weeks.

Furthermore, Electro Optic said that its facility located in the customer’s country has re-opened after being closed for 4 months. It is expected that technical teams will provide testing and support of integration with components and vehicles by suppliers.

Lastly, the company anticipates cash flow to resume in Q4 2020 and the accumulated backlog of product deliveries to be cleared in six months.

About the Electro Optic share price

The Electro Optic share price has risen more than 84% since falling to its 52-week low of $2.95 in March. From reaching an all-time high of $10.80 pre-COVID in February, the Electro Optic share price is down over 27% since the start of the calendar year.

Should you invest?

I believe that the Electro Optic share price weakness presents a buying opportunity for patient investors. Electro Optic is the largest defence contractor in the Southern Hemisphere and is considered important to the security of Australia’s national interest.

Post-COVID-19, I think that the Electro Optic share price could shoot higher over the next 18-24 months, providing the company is able to fulfil its contract deliveries.

More reading

• Electro Optic (ASX:EOS) share price shoots higher on new product release
• 3 defence ASX shares set for explosive growth
• Electro Optic share price drops after half-year results
• Why the Electro Optic share price rose 5% today
• New to investing? Here’s how I would make my first $100,000

Aaron Teboneras owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Wameja Ltd (ASX: WJA) share price has smashed through its 52 week high as it rockets on news of a scheme agreement with Burst Acquisition Co, owned by Mastercard Inc (NYSE: MA). At the time of writing, the Wameja share price is sitting at 14 cents, having risen 52.17%.

What does Wameja do?

Wameja is a software company that enables crossborder transfer between bank accounts, cards, mobile wallets, or cash outlets from anywhere in the world. The company is already partnered with Mastercard in regards to its HomeSend global payment hub.

Wameja is dual listed on the the London Stock Exchange, having listed here in Australia in early 2000.

Takeover details

This morning, Wameja advised that it has entered into a scheme implementation agreement (SIA) with Burst Acquisition. The details of the SIA are that Mastercard will acquire all of the issued capital of Wameja for 14.3 cents per share. The news has sent the Wameja share price shooting close to the offer price.

It should be noted that the scheme is subject to a number of conditions which must first be satisfied before the scheme can be implemented. Wameja’s shareholders and depository interest holders do not need to take any action at this time. 

What’s next?

There is significant support for the agreement with institutional shareholders on board. Lombard Odier Asset Management, which represents around 23.5% of the issued capital, has provided a letter of intent advising of its intention to vote in favour of the scheme. Moreover, Australia’s First Sentier Investors has also notified of its intent to support the agreement.

On top of the strong institutional shareholder support, the Wameja board is also unanimously recommending the scheme. The board is suggesting that, in the absence of a superior proposal, shareholders vote in favour of the scheme.

The Wameja share price has rallied strongly on today’s announcement. This is positive news for shareholders who can add to their already impressive gains this year. Prior to the announcement, the Wameja share price was up 15% for the year. After today’s gains, however, Wameja shares have now increased 75% year to date.

More reading

• Top brokers name 3 ASX shares to sell today
• Electro Optic (ASX:EOS) share price up on resumed contract
• Why Myer, Resolute, SKY, & Whispir shares are tumbling lower today
• Tech shares lead ASX rebound but Afterpay (ASX:APT) faces mounting competition
• DroneShield (ASX:DRO) share price has rocketed today

Daniel Ewing 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 Mastercard. The Motley Fool Australia has recommended Mastercard. 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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