The Vortiv Ltd (ASX: VOR) share price is flying higher today after the ASX micro-cap delivered a business update.

At the time of writing, Vortiv shares have surged 29.73% to 24 cents. This takes the company’s current market capitalisation to around $33 million.

About Vortiv

Vortiv is a technology-based company focused on cybersecurity and the cloud services sector. It owns Decipher Works, a cybersecurity company that provides consulting, support and managed services to financial institutions and large corporations. It also owns Cloudten Industries, a cloud and cloud security company that helps businesses migrate, secure and manage their infrastructure in the cloud.

Additionally, Vortiv holds a 24.89% interest in TSI India, a company that provides solutions in the payments, electronic surveillance and managed services spaces. TSI India owns and manages around 14,000 ATMs in India.

What did Vortiv announce?

This morning, Vortiv revealed it is on track to deliver another quarter of record growth. This has been driven by cybersecurity requirements of government and financial institutions. 

Revenue from the company’s cybersecurity arm in the June 2020 quarter is expected to land between $3.6 million to $3.8 million. Meanwhile, earnings before interest and tax is expected to be in the range of $0.5 million to $0.6 million.

Vortiv believes its focus on government and financial institutions proves to be sound as both sectors continue to invest significantly to enhance their cybersecurity technologies, particularly in light of recent cyber threats. These sectors represent 24% and 48%, respectively, of Vortiv’s revenue.

TSI India valuation

On top of the trading update for its cybersecurity business, Vortiv also revealed it has completed the carrying value review of its holding in TSI India for the financial year ending 31 March 2020.

According to today’s release, an independent valuation completed by a top 6 global accounting firm estimated Vortiv’s 24.89% stake to be worth between $5.5 million and $8.9 million. This compares to a valuation of $9.7 million in FY19.

The company has elected to adopt the lower end of the valuation estimate in its FY20 balance sheet given the current global conditions. 

TSI India FY20 results

Vortiv also revealed today that while TSI India’s FY20 financial results were adversely impacted by the upgrade of ATMs and COVID-19, its underlying EBITDA performance benefitted from operational efficiency.

As a result, TSI India achieved unaudited full-year results of $51.3 million revenue and underlying EBITDA of $2 million. While revenue decreased slightly by 2.1% compared to FY19, EBITDA grew 11.1% over the prior year.

Looking forward, TSI India expects to benefit from higher ATM up-time as well as lower maintenance and asset replacement costs. The business is, however, experiencing disruption due to COVID-19 lockdowns.

More reading

• Leading brokers name 3 ASX shares to buy today
• Where to invest $20,000 into ASX shares immediately
• Is the Blackmores share price in the buy zone?
• ASX supermarket shares on the radar
• Why Altium, Australian Ethical, Flight Centre, & Transurban are dropping lower

Motley Fool contributor Cathryn Goh 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 Vortiv share price surges 30% higher on business update appeared first on Motley Fool Australia.

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

Blue chips Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) are on many investors’ radars right now. The food retailer giants are striding through the pandemic with strong sales and revenues leading to the increased supermarket shares. 

Both companies are listed in the S&P/ASX 50 (ASX: XFL) and have a combined market capitalisation of close to $70 billion. Coles is the smaller of the 2, with a market capitalisation of $22 billion compared to Woolworths nearly $47 billion market cap. So, how are the 2 supermarket conglomerates performing? 

Coles 

Coles operates 2,500 retail outlets nationally, including 800 supermarkets, 900 liquor stores, and more than 700 fuel and convenience retailers. The Coles share price remained relatively robust in the March correction, losing around 17% from peak to trough. Shares are now trading at $16.68, relatively close to their high for the year of $17.17. 

Coles reported a 12.9% increase on its Q3 sales driven by panic buying at the start of the coronavirus pandemic. Supermarket sales increased by 13.8%, recording the division’s 50th consecutive quarter of comparable sales growth. Liquor sales were up by 7.2% and express sales up 4.3%. Coles Online sales revenue grew by 14% in Q3, despite home delivery being temporarily suspended in March. 

Coles Group reported sales revenue for Q3 at $9.2 billion. The Group responded to increased demand by hiring 12,000 extra workers. Beyond the initial panic buying, the fact that Australians are spending more time at home has increased consumption of home-cooked meals and their household items. 

Woolworths 

Woolworths is Australia’s largest supermarket chain, operating some 995 supermarkets across Australia. Including its liquor and Big W brands, Woolworths is behind some 3000 stores across the country. The Woolworths share price fell 20% in the March dip, but has since recovered somewhat and is currently trading down 16% from its 2020 high. 

Woolworths has benefited from the same forces driving increased sales at Coles. Overall, Q3 quarter sales grew by 10.7%. The Australian food business saw growth of 11.3%, Big W grew sales by 9.5%, and liquor also grew 9.5%. The hotels business saw a 12.9% drop in sales with the closure of venues. 

Sales growth continued in April although moderated from rates seen in March. Looking into the Q4, increased costs are expected to continue including costs associated with the temporary employment of 22,000 team members. These incremental costs are expected to be in the range of $220 – $275 million for Q4. The extent to which these costs can be offset will depend on the rate of sales growth over the remainder of the financial year. 

Foolish takeaway 

The supermarket giants saw increased sales as a result of the pandemic but each also incurred increased costs. The outcome of the changes will be revealed in Coles and Woolworths’ full-year results with a close watch on the supermarket shares. 

More reading

• ASX 200 Weekly Wrap: ASX back in the green
• 3 high quality ASX dividend shares for income investors to buy
• These 3 ASX ETFs are yet to recover from the market crash
• Australian retail sales up 16.3% in May
• Why the Wesfarmers share is beating the ASX 200

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and 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 ASX supermarket shares on the radar appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/312Z7xV

After a poor start to the day, in early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing the benchmark index is up 0.35% to 5,963.4 points.

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

The Altium Limited (ASX: ALU) share price is down 7% to $33.70. The electronic design software company’s shares have come under pressure today after it warned that it was likely to fall short of consensus estimates in FY 2020. Altium advised that this is because the pandemic is impacting its performance during the latter weeks of the financial year. This is historically a strong period for sales.

The Australian Ethical Investment Limited (ASX: AEF) share price has fallen 6% to $8.49. Investors have been selling the ethical fund manager’s shares after the release of its guidance for FY 2020. According to the release, it expects underlying profit after tax before performance fees to be between $6.8 million and $7.5 million. The mid-point of this range represents a 10% increase on the prior year. This compares to its first half profit growth of 38%.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is down 4% to $13.06. A number of travel shares have come under pressure today. This could be due to concerns over a potential second wave of coronavirus in Victoria. If things were to get out of control, it could delay the recovery of domestic travel markets.    

The Transurban Group (ASX: TCL) share price is down 2.5% to $14.77 despite the release of a decent trading update. According to the release, traffic volumes on its toll roads are improving now that restrictions are being eased. For the week commencing 14 June, traffic volumes across the company were down approximately 20% compared to the prior corresponding period. The company also revealed plans to pay a second half distribution of 16 cents per unit.

More reading

• ASX 200 flat: Altium update disappoints, Metcash posts full year loss
• These 5 ASX shares were last week’s top performers
• Transurban share price falls despite a positive market update
• Altium share price sinks 7% lower after FY 2020 trading update
• ASX 200 Weekly Wrap: ASX back in the green

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 Altium and Australian Ethical Investment Ltd. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and Flight Centre Travel Group 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 Altium, Australian Ethical, Flight Centre, & Transurban are dropping lower appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31g6emT

Top-quality ASX 200 dividend shares are like gold dust in times like these. We’ve well and truly emerged from the March bear market, but the cost has been many companies slashing their distributions to shareholders.

Whether you’re a retiree or a young investor, dividend shares are a valuable part of any portfolio. Regular dividends can provide handy income or be reinvested to turbo-charge your retirement plans.

With that in mind, here are a few of my top dividend shares that are yielding over 8% right now.

3 ASX 200 shares with hefty dividend yields 

For dividends, the Aussie real estate investment trusts (REITs) are an obvious place to start. The trust structure of the REITs means 90% or more of their profits are paid to investors each year.

That’s why Scentre Group (ASX: SCG) boasts an impressive 8.67% dividend yield right now. Scentre owns and operates Westfield shopping centres across Australia and New Zealand. Clearly, Aussie retail hasn’t been doing well amid the coronavirus pandemic and this has been reflected in the Scentre share price.

The ASX 200 retail REIT has slumped 42.3% lower this year as investors have flocked to safety. While Scentre’s earnings may fall and lead to lower dividends, it could also be a cheap buy if you’re looking at the long-term.

Provided shopping centre foot traffic bounces back, government stimulus could prop up rents in the short-term. That means Scentre’s earnings may not be as bad as many suspect and that 8.67% dividend yield may remain intact.

The other place I’m looking for ASX 200 dividend shares is the Aussie banking sector. Despite surging 15.9% higher in June, Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are still yielding a whopping 9.21% right now.

The Aussie banks have slashed distributions under the orders of the banking regulator, Australian Prudential Regulation Authority (APRA). APRA wants the banks to preserve capital in case we encounter a Great Recession-type downturn.

However, investors have still been reasonably bullish on the ASX banks like Bendigo. I personally don’t look to invest outside of the major banks within the banking sector, but Bendigo could be a good option if you think the big four are over-bought.

In terms of the big four, Westpac Banking Corp (ASX: WBC) shares also have a super-charged yield right now. Westpac is currently paying 9.54%, which is an impressive return if the bank can maintain its dividends in the long-term.

But… it’s buyer beware

As I said, top ASX 200 dividend shares are like gold dust right now. However, we’ll have to wait until the next earnings cycle (August or November) to really see which companies are able to maintain their dividends.

Dividend yields can be misleading in the current market, so be wary of buying for the headline yield numbers.

If you’re investing for the long-term, however, there could be some good ASX 200 shares to buy that can churn out profits well into the future.

More reading

• ASX 200 flat: Altium update disappoints, Metcash posts full year loss
• Is the Domino’s Pizza share price a good buy at $68?
• These 5 ASX shares saw the biggest losses last week
• A $73m boost sends the Austal share price to the top of the ASX 200 today
• These 5 ASX shares were last week’s top performers

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. 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 Here are 3 ASX 200 shares with dividend yields over 8% appeared first on Motley Fool Australia.

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

The iron ore spot price has climbed to 10-month highs following Vale’s decision to suspend iron ore mining at its Itabria site.

Prices are expected to remain high driven by the short-term concern of fewer shipments from Brazil. This is coupled with China’s port inventories being at a 3-year low and rising demand from Chinese steel mills.

Could this be an opportunity to buy in at the current Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG) and BHP Group Ltd (ASX: BHP) share price?

Iron ore shortage

Vale’s Itabria mining operations were suspended after at least 188 workers tested positive for the coronavirus. This site is responsible for approximately 12% of Vale’s total production. Vale’s supply in the short-term is at risk but it’s difficult to tell whether the company’s annual production will be impacted.  Broadly speaking, South America has struggled to contain the coronavirus – a near-term threat for its iron ore production and shipments.

An increasing dependency on Aussie miners to supply iron ore could be good news for the likes of Rio Tinto, Fortescue and BHP. 

Chinese iron ore consumption 

China has invested in its infrastructure, transport and energy sectors to claw its way back to positive growth. The construction sector is making a suggestive recovery judging by a rise in demand for cement and site machinery.

Data from the China Construction Machinery Association showed that the 25 largest excavator companies recorded sales up 60% year on year in May. Furthermore, the government announced plans to issue RMB$3.75trn worth of bonds to fund regional developments and support businesses hit by COVID-19.

Brazil’s production challenges coupled with an increase in construction activity in China could see iron ore prices remain at today’s elevated levels. 

Are Rio Tinto, Fortescue and BHP a buy? 

There are many near-term factors that point to higher iron ore prices. This would mean healthy margins and market-leading dividends from Aussie iron ore miners. 

Fortescue, being a pure iron ore play means its share price is more responsive to rising iron ore prices. Its shares hit a record all-time high last week of $15.25 while paying a dividend yield of 7.40%. Given how much it has run-up in recent times, I would personally avoid Fortescue shares for the time being. 

Alternatively, I believe the Rio Tinto and BHP share price represent good long-term value at today’s prices. Both shares are within 15% of its recent highs and pay a moderate dividend yield of around 6%. 

More reading

• These 5 ASX shares saw the biggest losses last week
• Infrastructure shares boosted by government spending
• ASX 200 Weekly Wrap: ASX back in the green
• Which shares to buy if the ASX tumbles
• 2 blue chip ASX 200 dividend shares to buy next week

Motley Fool contributor Lina Lim 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 Iron ore prices: Are the Rio Tinto, Fortescue and BHP share prices a buy? appeared first on Motley Fool Australia.

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

In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) has fought back from a bad start and is storming higher. At the time of writing the benchmark index is up 0.25% to 5,957.8 points.

Four shares that are climbing more than most today are listed below. Here’s why they are starting the week with a bang:

The Austal Limited (ASX: ASB) share price is up 10% to $3.69. Investors have been buying the shipbuilder’s shares on Monday after it revealed that the U.S. government is investing US$50 million into its U.S. business. The agreement is part of the government’s national response to COVID-19 to maintain, protect, and expand critical domestic shipbuilding and maintenance capacity.

The James Hardie Industries plc (ASX: JHX) share price has climbed over 6% to $28.39. This morning the building materials company upgraded its guidance for the first quarter of FY 2021. James Hardie’s North American adjusted earnings before interest and tax (EBIT) margin is now forecast to be between 27% and 29% for the quarter. This compares with its previous guidance of 22% to 27%.

The Northern Star Resources Ltd (ASX: NST) share price is up 4.5% to $13.61. As well as getting a boost from a rising gold price, investors appear to have responded positively to an asset divestment announcement. The gold miner has agreed to divest the Mt Olympus Project, which comprises most of the Ashburton Project in Western Australia. It will be sold to Kalamazoo Resources Limited (ASX: KZR) for a deferred contingent cash consideration of $17.5 million.

The Ramelius Resources Limited (ASX: RMS) share price has jumped 14% to $2.04 after upgrading its production guidance. The gold miner revealed that its quarterly production is now expected to be in excess of 80,000 ounces. This compares to previous guidance of 65,000 to 70,000 ounces. In light of this, FY 2020 guidance is expected to be a record 225,000 to 230,000 ounces. This is up from its previous full year guidance of 210,000 to 220,000 ounces.

More reading

• ASX 200 flat: Altium update disappoints, Metcash posts full year loss
• A $73m boost sends the Austal share price to the top of the ASX 200 today
• James Hardie share price in spotlight as it upgrades profit guidance
• 5 things to watch on the ASX 200 on Monday
• Top fund manager reveals some of the best ASX shares to own

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

The post Why Austal, James Hardie, Northern Star, & Ramelius are storming higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2V35Owc

The Althea Group Holdings Ltd (ASX: AGH) share price is on the rise today. This follows an announcement that company’s subsidiary has entered into a cannabis beverage production agreement. Althea’s subsidiary, Peak Processing Solutions, has struck a deal with Collective Project Limited to manufacture canned, cannabis-infused beverages at its Ontario facility.

What does Althea do?

Althea is a supplier of medicinal cannabis. The company operates in the highly regulated medical cannabis markets across Australia, the United Kingdom, and Germany. It also has plans to expand into emerging markets throughout Asia and Europe. Althea’s Peak Processing Solutions subsidiary is an extraction and manufacturing business based in Canada. Work was recently completed on Peak Processing’s manufacturing facility and licensing of the facility with Health Canada is currently underway.

What does the new agreement mean?

The new agreement is an important milestone for Peak Processing Solutions and provides validation of the company’s industry-leading production capabilities. Manufacture under the agreement will commence once Peak Processing Solutions is granted its Health Canada Standard Processing Licence. Once licensed, Peak Processing Solutions will support clients with a suite of professional services including product and brand development, regulatory affairs, warehousing, and distribution.

Peak Processing Solutions aims to leverage Canada’s ‘Legalization 2.0’, which allows the sale of cannabis-infused edibles, drinks, nutraceuticals, and cosmetic products. The subsidiary is being positioned as a leading contract manufacturer for consumer brands looking to supply recreational cannabis and create cannabis infused products.

How are cannabis shares performing?

The Althea share price has more than doubled since March when it hit a low of 16 cents per share. In this respect, Althea has outperformed other ASX-listed cannabis companies. For example, Cann Group Ltd (ASX: CAN) has seen its share price increase 55% from its March low. Meanwhile, the Auscann Group Holdings Ltd (ASX: AC8) share price has increased 14% over the same period.

What is the outlook for the cannabis market?

Despite the coronavirus pandemic, the global medical marijuana market is predicted to grow by US$22.33 billion over the next four years, with a compound annual growth rate of 24%. In fact, cannabis sales in the United States surged in the wake of the pandemic. On 16 March, sales of recreational marijuana increased by 159% in California, 100% in Washington State, and 46% in Colorado, compared to the same day in 2019.

Australia’s cannabis market is forecast to grow from $52 million in 2018 to $1.2 billion in 2027. This would make it the fifth largest market in the world. The jump in value is the anticipated result of regulatory changes that have come into effect in recent years, lifting restrictions on the use of cannabis for certain purposes. Althea, Auscann, and Cann Group all stand to benefit from this burgeoning market.

More reading

• Why AusCann, Phoslock, Kogan, & Village Roadshow are dropping lower
• ASX cannabis shares see mixed recovery
• Why Cann, IAG, Monadelphous, & Webjet shares are storming higher

Motley Fool contributor Kate O’Brien 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 Althea share price lifts as cannabis market growth predicted appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/37WxI28

The Tyro Payments Ltd (ASX: TYR) share price is down by 4.17% this morning, after the payment solutions company released its latest transaction volumes. Data released by Tyro shows transaction volumes recovering in June, with volumes up 7% for the month to date compared to 2019.

Despite these numbers, the Tyro Payments share price has dropped to $3.68 in morning trade. 

What does Tyro Payments do?

Tyro Payments is a technology company that provides payment solutions and complementary business banking products. The company is Australia’s 5th largest merchant acquiring bank by number of terminals in the market (behind the four major banks). Used by more than 32,000 merchants in the first half of FY20, Tyro processed over $11.1 billion in transaction value, generating $117.3 million in revenue.

Tyro Payment’s technology platform enables debit and credit card payments. It can be integrated with point of sale systems and is capable of accepting alternative payment types such as Alipay. Traditionally focused on in-store payments, Tyro has recently expanded to eCommerce. Tyro Payments also offers loans in the form of merchant cash advances as well as merchant transaction accounts. In 1H FY20, Tyro Payments originated $37.4 million in loans and held merchant deposits totalling $9.7 million.

How has Tyro Payments been performing?

Tyro Payments was recording significant increases in transaction volumes in early calendar 2020, prior to the onset of the COVID-19 crisis. Transaction volumes increased 27% in January and 30% in February. With the onset of the pandemic in March, growth in transaction volumes fell to 3% as many merchants closed stores.

Transaction volumes fell 38% in April (to $0.911 billion from $1.468 billion) and 18% in May (to $1.285 billion from $1.562 billion) as the crisis took hold. More recent data, however, has shown strong signs of recovery. June volumes are up 7% to $1.016 billion from $0.946 billion over the same period in FY19. Thanks to early strong gains, Tyro Payments’ year-to-date transaction volumes are up 15% to $19.491 billion from $16.890 billion in FY19.

What is the outlook for Tyro Payments?

The company IPO’d last year at an issue price of $2.75 per share in the biggest float of 2019. The Tyro Payments share price dropped dramatically in the March correction, losing nearly 80% of its value from peak to trough.

Since then, however, the Tyro Payments share price has almost quadrupled from a low of 97 cents with shares currently trading at $3.68. This indicates investors are bullish on Tyro Payments’ prospects. As a result of the increase in share price, Tyro Payments entered the S&PASX 300 Index (ASX: XKO) in the latest rebalance.

More reading

• Consider these 2 ASX fintech shares before they take off
• The Tyro Payments share price was down 12% on Monday, here’s why
• Keep a watch on the Zip Co share price and 1 other ASX tech this June
• Why ASX, Domain, Tyro, & Wesfarmers shares are dropping lower
• Are Aussies still withdrawing cash like crazy?

Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. 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 Tyro Payments share price slumps despite strong transaction volumes appeared first on Motley Fool Australia.

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