Tag: Motley Fool Australia

The Woodside Petroleum Limited (ASX: WPL) share price has plunged 37% lower in 2020, but how does it stack up against its peers?

What do I need to know about Woodside?

Woodside is the largest Australian natural gas producer and a leader in the ASX energy sector. It hasn’t been the best year for oil and gas investors, with the Woodside share price plummeting to to $21.61 per share from highs of around $35 in January.

The coronavirus pandemic has hit ASX shares hard, however, the ongoing oil price war has arguably had a larger impact on ASX energy shares. While tensions between OPEC+ and Russia appear to be easing, the Woodside share price doesn’t look like it is bouncing back anytime soon.

The brinkmanship shown from leading world oil producers has created a supply glut and even briefly sent oil prices negative. These depressed prices don’t bode well for Woodside’s profitability or share price growth in FY 2020.

According to the ASX, Woodside has 954.36 million shares on issue, which currently gives the company a market capitalisation of $20.6 billion. While impressive, that’s a long way shy of its 2 January valuation of $32.9 billion.

The Woodside share price currently trades at a price to earnings (P/E) ratio of 40.76 with a dividend yield of 6.32%. It’s not easy to say whether an ASX share is good value in isolation, so let’s take a look at some other ASX energy shares right now.

How do Woodside compare to its competitors?

	Woodside Petroleum Limited (ASX: WPL)	Santos Limited (ASX: STO)	Oil Search Limited (ASX: OSH)
2020 share price change	-37.91%	-37.28%	-56.23%
Market capitalisation	$20.6 billion	$10.9 billion	$6.6 billion
P/E ratio	40.7	11.3	11.1
Dividend yield	6.3%	3.1%	4.3%

Table: Author’s own. Source: Google Finance, ASX.com.au

Is the Woodside share price good value?

The table above paints a pretty dire picture of the ASX energy sector right now. Despite tough times, Woodside has almost double the market capitalisation of Santos and more than triple that of Oil Search.

While the Woodside share price is yielding 6.3% right now, I wouldn’t bank on that dividend given the tough conditions facing the sector right now.

The company’s shares are also trading at a P/E ratio nearly 4 times higher than its peers. That to me says that the Woodside share price is a touch overvalued, or at the very least, not a cheap buy at its current valuation.

More reading

• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• 5 things to watch on the ASX 200 on Monday
• Here’s how to play China’s V-shaped growth story
• 5 things to watch on the ASX 200 on Friday
• Is the Oil Search share price worth buying?

Motley Fool contributor Ken Hall 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 Ramsay Health Care Limited (ASX: RHC) share price jumped 3.6% higher last week but is it a good buy in the ASX healthcare sector?

What does Ramsay Health Care do?

Ramsay Health Care is a private healthcare provider with operations across Australia, Europe and Asia. The company was founded in Australia in 1964 and now employs more than 77,000 staff. Ramsay delivers a range of health care from primary care through to highly complex surgery, mental health care and rehabilitation.

What’s been happening in the last few months?

It’s been a big 6 months for the Ramsay Health Care share price and the company’s investors. The ASX healthcare provider was one of the harder hit shares in the February/March bear market, falling 42.2% in the space of a month to a 52-week low of $46.12 per share. 

The coronavirus pandemic spooked investors generally but many sold out of the healthcare sector in particular. Fears of hospitals being overrun with COVID-19 patients had many nervous that Ramsay would struggle to maintain operations in 2020.

This hasn’t proven to be the case, however, and the Ramsay Health Care share price has since bounced back to $66.41 per share. But us long-term investors can’t afford to look exclusively in the rear-vision mirror. So, what else could make Ramsay a good value buy this year?

How strong are the company’s financials?

Ramsay Health Care released its half-year earnings on 27 February for the year ended 31 December 2019. All in all, I thought it was a solid result from the ASX healthcare share. Group revenue climbed 22.5% to $6.3 billion. This was led by strong results from its Australia/Asia, United Kingdom and Continental Europe segments. 

Earnings before interest, tax, depreciation, amortisation and restructuring/rent costs (EBITDAR) surged 17.4% to $1.1 billion. Meanwhile, net profit after tax climbed 3.4% on a like for like basis to $273.6 million. These figures were excluding the contributions of Capio AB, the Swedish healthcare company acquired by Ramsay in 2018.

How does the Ramsay Health Care share price compare to its peers?

Despite a recent recovery, the Ramsay Health Care share price remains down 7.8% in 2020 but is still outperforming the S&P/ASX 200 Index (ASX: XJO). The company’s shares currently trade at a price to earnings (P/E) ratio of 25.7 with a 2.30% dividend yield. 

By itself, that’s not necessarily a bad thing, particularly given the potential for short-term growth in healthcare demand. In terms of its peers, the Healius Ltd (ASX: HLS) share price trades at a P/E of 19.0 with a 1.9% dividend yield.

All in all, I think the Ramsay Health Care share price is probably neither cheap nor overvalued right now. Despite some strong tailwinds, the healthcare industry could easily come under pressure in 2020. I personally don’t think I’ll be buying in unless this ASX health care share falls further.

More reading

• The most popular US shares that Aussies are buying includes a few surprising names
• Why the Mesoblast share price is leading the ASX 200 on Monday
• Cochlear and these ASX 200 shares could be fantastic buy and hold investments
• The latest ASX 200 stocks crashing on broker downgrades
• Analysis: Is the Polynovo share price good value?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Cleanaway Waste Management Ltd (ASX: CWY)

According to a note out of Morgan Stanley, its analysts have commenced coverage on this waste management company’s shares with an overweight rating and $2.45 price target. The broker believes that Cleanaway’s vertical integration and large collections business gives it an edge over the competition. And while it sees some short term pain during the pandemic, it is very positive on its long term growth prospects in a lucrative market. It also sees opportunities for consolidation in the industry. I agree with Morgan Stanley and would be a buyer of its shares.

Lovisa Holdings Ltd (ASX: LOV)

Analysts at Morgans have retained their add rating but trimmed the price target on this jewellery retailer’s shares to $8.14. According to the note, the broker wasn’t surprised to see Lovisa’s sales fall heavily in the second half. And although it expects its sales recovery to take time due to its reliance on foot traffic, it still sees a lot of value in its shares at the current level. Especially given its expansion opportunities. I would have to agree with Morgans and feel the Lovisa share price is good value at present.

Reject Shop Ltd (ASX: TRS)

Another note out of Morgan Stanley reveals that its analysts have upgraded this discount retailer’s shares from an underweight rating to an overweight rating and lifted the price target on them materially to $10.00. According to the note, the broker believes Reject Shop has a big opportunity in a fragmented market. And while it acknowledges that its performance has underwhelmed in the past, it is optimistic that its new simplified strategy will be that start of something positive. While I think Morgan Stanley makes some good points, I think the Reject Shop share price looks expensive at over 50x estimated FY 2021 earnings.

More reading

• How to turn $20,000 into over $200,000 in 10 years with ASX shares
• Lovisa share price up 5% as retailer provides business update
• Why Lovisa, PointsBet, Transurban, & WiseTech shares are racing higher
• Lovisa share price on watch after full year sales update
• 3 ASX cleantech shares to consider buying now

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

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WAM Leaders Ltd (ASX: WLE) has cemented its place as a top ASX dividend share after announcing a dividend increase for the FY20 final dividend. The WAM Leaders share price is up 5%.

Overview of WAM Leaders

WAM Leaders is a listed investment company (LIC) that actively invests in large cap ASX shares.

It’s operated by Geoff Wilson’s Wilson Asset Management (WAM) with the lead portfolio manager being Matthew Haupt. It was launched in May 2016.

FY20 details

The full report wasn’t released today, but WAM Leaders announced a number of key aspects about its FY20 result.

The ASX dividend share stated that its investment portfolio had significantly outperformed during FY20. In the 12 months to 30 June 2020 the investment portfolio outperformed the S&P/ASX Accumulation Index by 10.4% with a positive return of 2.7%. The benchmark fell 7.7%.

Since inception in May 2016 the WAM Leaders investment portfolio has increased 10.2% per annum, outperforming the index by 3.7% per annum.

WAM Leaders attributed its investment approach as the reason for the outperformance. It focuses on large companies with “compelling fundamentals, a robust macroeconomic thematic and a catalyst to drive the share price higher”.

A 15% dividend increase

The ASX dividend share’s board has declared a fully franked final dividend of 3.25 cents per share, bringing the FY20 full year dividend to 6.5 cents per share. The FY20 annual dividend is 15% bigger than the FY19 total.

WAM Leaders funds its dividend from the investment profits that it makes. Building up the profit reserve is important to pay for future dividends.

At 30 June 2020 the company had an estimated profit reserve of 15.6 cents per share before the payment of the fully franked final dividend of 3.25 cents per share. This represents 2.4 years of dividend coverage at the current level.

The ASX dividend share’s board said it’s committed to paying an increasing stream of fully franked dividends to shareholders as long as it has sufficient profit reserves, franking credits and it makes sense to do so.

Since inception the LIC has paid 16.9 cents per share in fully franked dividends. It has grown its dividend each year since FY17 when it first started paying a dividend.

Top holdings at 30 June 2020

A LIC’s return is dictated by the performance of its holdings.

At the end of FY20 its biggest holdings, in order, were: National Australia Bank Ltd (ASX: NAB), CSL Limited (ASX: CSL), BHP Group Ltd (ASX: BHP), QBE Insurance Group Ltd (ASX: QBE), Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), Santos Ltd (ASX: STO), Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES), Australia and New Zealand Banking Group (ASX: ANZ), Telstra Corporation Ltd (ASX: TLS) Rio Tinto Limited (ASX: RIO), Star Entertainment Group Ltd (ASX: SGR), Downer EDI Limited (ASX: DOW) and Transurban Group (ASX: TCL).  

Many of the above names are similar to the biggest names on the ASX. It may be noteworthy that NAB is the biggest holding whilst the ANZ position is smaller than Wesfarmers and Woolworths. Star and Downer are two other interesting investments that aren’t in the ASX 20.

Foolish takeaway

The ASX dividend share has been an impressive performer during FY20. Plenty of WAM Leaders’ positions that I mentioned above probably won’t be giving shareholders a dividend increase due to COVID-19. So I think it’s impressive that WAM Leaders is increasing the income for shareholders.

At the current WAM Leaders share price of $1.14 it offers a grossed-up dividend yield of 8.1%.

More reading

• Why Electro Optic Systems, Mayne Pharma, Tyro, & WAM Leaders are racing higher
• 3 of the best ASX dividend shares for income
• 3 dividend shares I’d buy to boost my income
• If I won the lottery I’d buy these 6 ASX shares

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Transurban Group 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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The Phoslock Environmental Technologies Ltd (ASX: PET) share price has surged by 21% today after the water treatment company reported new contracts and project extensions. New project sites have been confirmed in Washington State and New Jersey, and a Brazilian contract has been extended.

What does Phoslock do?

Phoslock specialises in engineering solutions and water treatment products to remediate polluted lakes, rivers, and canals. The company produces a product that removes phosphates and other contaminates from water bodies, and is also safe to use in drinking water reservoirs. Removing excess phosphorus from water inhibits the growth of harmful algal blooms that can have detrimental impacts on aquatic and human life.

What did Phoslock announce?

Phoslock announced that it has been contracted to treat the 240 hectare Kitsap Lake in Washington State and Lake Hopatcong in New Jersey. If Phoslock’s technology is deemed successful and cost-effective at Lake Hopatcong, this could set the precedent for large-scale prevention of harmful algal blooms in other lakes through New Jersey and the United States.

The company highlights that the contracts represent an important opportunity for Phoslock’s technology to be demonstrated in new regions and could result in further business in the US, where water quality issues are receiving more government and public attention.

In Brazil, Phoslock’s contract to treat Lake Pampulha, an important recreational and cultural area, has been renewed for another year. In Rio De Janeiro, an initial application of Phoslock to a major drinking water reservoir of the city has been successful and will be followed up with further treatments in the second half of 2020. The company reports that in the second half of 2020, additional treatments are scheduled for drinking water reservoirs in northern and southern Brazil.

In Europe, Phoslock will be applied to a small alpine lake in the Dolomites in Italy and to a lowland lake in the Netherlands in the final quarter of calendar 2020. Phoslock continues to operate across China with 3 ongoing projects in Yunnan province and continued maintenance work on South Beijing canals.

What is the outlook for Phoslock?

Phislock is seeking to diversify the revenue base of its business. The ability to secure contracts in new regions and new markets is a key pillar of this strategy. The company also remains strongly committed to growing its business in China where its technology is increasingly accepted as best in class for water remediation. Despite travel restrictions, additional resources invested in growth outside China is being reflected in a stronger pipeline of new contracts.

The Phoslock share price is up by 21.43% in today’s trade to sit at $0.34, but still remains more than 50% down since the beginning of 2020.

More reading

• Why AusCann, Phoslock, Kogan, & Village Roadshow are dropping lower

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.

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The New Century Resources Ltd (ASX: NCZ) share price is up by 8.57% today, thanks to a market announcement that revealed significant increases in the miner’s quarterly production, alongside cost reduction measures.

The news will be well received by shareholders, after the New Century share price has tumbled from its $0.45 high in the past year.

What happened?

In its announcement, New Century Resources declared commercial production at its Century Zinc Mine operation in Queensland, meaning that production from the mine begins to make operations economically feasible. This follows the mine recording a 22% increase in zinc metal production during the quarter ended June 2020, hitting 34,500 tonnes. The mine also saw a large decrease in direct costs, which were down to about US$0.79/lb on payable metal.

This increase is the 7th consecutive quarter in which the mine has seen not only increased zinc production but also the reduction in costs.

New Century managing director Patrick Walta confirmed that the company remains focused on continuing this trend, and commented that the mine is “now re-established as a top 10 zinc producer just 3 years since being shutdown for closure.”

Goro nickel and cobalt mine acquisition

Towards the end of May, New Century made an announcement that it had entered a 60-day exclusivity period with Vale in relation to the potential acquisition of the Goro nickel and cobalt mine in New Caledonia. The company is continuing to move forward with negotiations for the provision of suitable funding and long-term working capital for the operation.

If the acquisition of the Goro operation is successful, it would result in New Century Resources becoming a major supplier of nickel and cobalt for the growing electric vehicle industry.

About the New Century share price

Despite the zinc price remaining near 4-year lows, Walta stated that the company sees “potential for a price rebound due to additional metal demand from increased global infrastructure development linked to Covid-19 government stimulus.” Any price rebound in the zinc price will have a corresponding impact on the New Century share price.

The New Century share price has been wildly volatile since it listed in mid 2017, going from $1.50 to lows of $0.05 in March, before rebounding to $0.19 a share, or an increase of 280% since March.

However, New Century does remain one of the most shorted shares on the ASX. 

More reading

• ASX stock of the day: Phoslock share price surges 21% on business update
• 3 ASX tech shares to buy and hold
• Why the Mesoblast share price is leading the ASX 200 on Monday
• Afterpay share price pushes higher on Qantas partnership
• Adacel Technologies share price soars 19% on updated profit guidance

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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Technology has revolutionised how we work and play. Furthermore, being technology focused has enabled some companies to weather the coronavirus crisis far better than others. Social distancing measures have hammered the economy this year. But some companies, as well as their investors, have reaped the benefits that stem from operating tech-focused businesses in the current environment. 

Let’s discuss 3 such ASX tech shares that I believe will reward long-term investors.

NextDC Ltd (ASX: NXT)

New contract wins have helped the NextDC share price surge to new highs over the past 12 months. In an update released to the market on 1 July 2020, CEO and managing director Craig Scroggie stated: “The demand for our data centre services continues to accelerate and exceed expectations”.

NextDC was also admitted as a top 100 ASX listed company in the June S&P/ASX Indices quarterly rebalance.

In May of this year, the Aussie data centre operator also completed a $191 million share purchase plan. This followed a $672 million institutional placement completed on 8 April. The funds will assist the company with pursuing growth opportunities including the proposed development of a new data centre in Sydney.  

Technology One Ltd (ASX: TNE)

Technology One is an Australian Software as a Service (SaaS) provider. The company’s diversified client base and global expansion plans are helping it to consistently deliver stable and increasing earnings.

In fact, in an announcement on 19 May, Technology One advised it anticipates annual recurring revenues (ARR) to grow to $500 million by FY24. ARR in FY19 was $202 million. Furthermore, the company reported a low churn rate of 0.45% for the half year ended 31 March.

CEO Edward Chung said: “With a strong pipeline, a high proportion of locked in recurring revenues, no debt and a strong balance sheet, we are well positioned to deliver continuing strong growth over the full year”.

Xero Limited (ASX: XRO)

Xero offers cloud-based accounting software for small and medium sized businesses. The software is designed to make record keeping simple and user-friendly.

The group has been successfully expanding and now operates in Australia, New Zealand, the United Kingdom, North America, and other parts of the world.

In its FY20 investor presentation on 14 May this year, the company announced subscribers have grown 467,000 to 2.285 million. As a result, revenue climbed 30% year-on-year to $718.2 million. Earnings before interest, taxation, depreciation and amortisation (EBITDA) has also increased $64.6 million year-on-year to $137.7 million.

Its successful growth strategy is a key reason the Xero share price has been surging. While the company cautioned about the uncertainty surrounding COVID-19, it remains committed to its growth targets and long-term strategy.

CEO Steve Vamos said on 14 May 2020: “…Now more than ever, small businesses are recognising the benefit of being able to use the cloud to run their businesses and manage their finances.”

Foolish takeaway

I believe technology is driving flexibility of operation in the modern world. As a result, barriers such as physical location are now declining allowing us to increasingly work and play online.

I’m confident an investment in the companies listed above has the potential to reward long-term investors with capital growth due to the increasing demand for their products and services. 

More reading

• These were the 5 best performing ASX shares last week
• Is the NextDC share price still a buy despite hitting an all-time high?
• Altium and 2 more ASX 200 shares to watch this week
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• Top brokers name 3 ASX shares to buy next week

Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. 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 best performer on the S&P/ASX 200 Index (ASX: XJO) on Monday has been the Mesoblast limited (ASX: MSB) share price by some distance.

In afternoon trade the allogeneic cellular medicines developer’s shares are up a sizeable 8% to $3.65.

Why is the Mesoblast share price storming higher today?

Investors have been buying the company’s shares after it provided an update on its allogeneic mesenchymal stem cell (MSC) product candidate, remestemcel-L.

According to the release, an expanded access protocol (EAP) has been initiated in the United States for compassionate use of remestemcel-L in the treatment of COVID-19 infected children with cardiovascular and other complications of multisystem inflammatory syndrome (MIS-C).

This means that patients aged between two months and 17 years may receive one or two doses of remestemcel-L within five days of referral under the EAP.

The company advised that the protocol was filed with the United States Food and Drug Administration (FDA) and provides physicians with access to remestemcel-L for an intermediate-size patient population under its existing Investigational New Drug application.

What is MIS-C?

MIS-C is a life-threatening complication of COVID-19 in otherwise healthy children and adolescents. It includes massive simultaneous inflammation of multiple critical organs and their vasculature.

In approximately 50% of cases this inflammation is associated with significant cardiovascular complications that directly involve the heart muscle and may result in decreased cardiac function.

Furthermore, the virus can result in dilation of coronary arteries with unknown future consequences.

Remestemcel-L is believed to have immunomodulatory properties to counteract the inflammatory processes by down-regulating the production of pro-inflammatory cytokines, increasing production of anti-inflammatory cytokines, and enabling recruitment of naturally occurring anti-inflammatory cells to involved tissues.

The therapy comprises culture-expanded mesenchymal stem cells that are derived from the bone marrow of an unrelated donor. It is then administered in a series of intravenous infusions.

Important therapeutic benefits.

Mesoblast’s Chief Medical Officer, Dr Fred Grossman, appears optimistic that remestemcel-L can offer important therapeutic benefits to MIS-C patients.

He commented: “The extensive body of safety and efficacy data generated to date using remestemcel-L in children with graft versus host disease suggest that our cellular therapy could provide a clinically important therapeutic benefit in MIS-C patients, especially if the heart is involved as a target organ for inflammation.”

“Use of remestemcel-L in children with COVID-19 builds on and extends the potential application of this cell therapy in COVID-19 cytokine storm beyond the most severe adults with acute respiratory distress syndrome,” he concluded.

More reading

• Cochlear and these ASX 200 shares could be fantastic buy and hold investments
• The latest ASX 200 stocks crashing on broker downgrades
• Analysis: Is the Polynovo share price good value?
• ASX 200 edges higher: Afterpay and Qantas join forces, big four banks push higher
• These were the 5 best performing ASX shares last week

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

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The Afterpay Ltd (ASX: APT) share price is pushing higher on Monday after announcing an exclusive new partnership with Qantas Airways Limited (ASX: QAN).

The buy now pay later provider’s shares were up 2% to $68.80 at one stage, but have since pulled back a touch.

The Afterpay share price is currently 0.7% higher at $67.95.

What did Afterpay and Qantas announce?

This morning Afterpay and Qantas announced the launch of a new partnership allowing Qantas Frequent Flyers to earn Qantas Points with the buy now pay later platform.

From later this week, Qantas Frequent Flyers will be able to earn up to 5,000 Qantas Points when they link their membership number to their Afterpay account.

Qantas Loyalty CEO, Olivia Wirth, notes that earning points with Afterpay will be advantageous for the large number of users classed as frequent buyers. These are users that maximise their points earn on everyday spending and not just flights.

She added: “Financial services is one of the most popular ways to earn points in the program, it’s the quickest and easiest way to build your points balance. With our 13 million members all having different spending habits and financial preferences, it’s great to be able to offer more options and more rewards.”

Afterpay’s CEO and Co-Founder, Anthony Eisen, was pleased to be partnering with one of Australia’s largest and most recognised loyalty programs. He feels it will provide significant upside for Afterpay customers.

Mr Eisen said: “We are always looking for ways to add value for our customers and this partnership between two iconic Australian brands is a great way to reward them for shopping with Afterpay. Now our customers can earn Qantas Points on their purchases at no additional cost, just by using Afterpay as they normally would.”

How do you earn points?

If you’re not an Afterpay customer already, you’ll earn 500 Qantas Points for joining and adding your Qantas Frequent Flyer membership number to your Afterpay account.

After which, you’ll earn 1 Qantas Point per $1 spent, up to a total of 5,000 Qantas Points.

If you’re already an Afterpay user, you’ll have to wait a little longer before you start accruing points. Once you’ve spent $1,000, you’ll earn 1 Qantas Point per $1 spent. This is also up to a total of 5,000 Qantas Points.

Though, it is worth noting that the offer to existing Afterpay customers is limited to the first 50,000 members who link their membership number to their Afterpay account.

Foolish Takeaway.

I think this is a positive move by Afterpay and could pull in more new customers of an attractive demographic.

Though, given the limitations on the points you can accrue, it won’t be sending you to Europe or even interstate on a Qantas plane any time soon.

More reading

• ASX 200 edges higher: Afterpay and Qantas join forces, big four banks push higher
• These were the 5 best performing ASX shares last week
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• The Webjet share price is dividing analysts even as it becomes a likely takeover target
• These were the best performing ASX 200 shares last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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The Adacel Technologies Limited (ASX: ADA) share price is up by more than 19% today after the company updated the market with its revised profit before tax guidance.

It is welcome news for the technology company, which has been hard hit this year, with shares falling from $0.61 in January to a low of $0.30 cents on 23 March. The Adacel Technologies share price sits at $0.52 at the time of writing.

What did Adacel Technologies announce?

This morning, Adacel Technologies advised the market it has updated its profit before tax guidance to $4.8 million following strong operational execution. This represents a 20% increase on the guidance that was released to the market in mid-April.

Despite the continuing impact of COVID-19, the company reported that it was able to expedite a number of key infrastructure installations for existing customers in Australia and the US. Furthermore, Adacel was able to complete 2 traffic management projects in Fiji and Portugal.

Adacel also updated its cash balance to approximately $5 million – an increase of around 150% on its forecasts in April. This increased cash balance was attributed to the early completion of the upgrades in the US and Australia, ongoing operating efficacies, and improved cash management.

In the announcement, CEO Daniel Verret expressed his pleasure at the “progress despite the challenges our teams faced with COVID-19.” He was also encouraged looking forward into FY2021, and anticipates “continued improvement in our financial performance,” assuming “modest and steady recovery from the COVID-19 disruption.”

What does Adacel Technologies do?

Adacel Technologies is a global software technology company headquartered in Melbourne and is involved with the design and application of air traffic management and simulation. According to the company, more than 21% of the world’s airspace is controlled using its air traffic management technology.

In late June, Adacel received a US$2.8 million order from the US Army for its air traffic control common simulator (ACS) program, demonstrating the ongoing partnership that started in 2013. These simulators will be installed in multiple military locations around the world.

Adacel supports customers worldwide from North and South America, to Europe, Asia Pacific, Africa, Australia and New Zealand. The company has been working with military, defence and security customers, airport authorities and universities for over 30 years.

About the Adacel Technologies share price

Adacel shares have returned more than 23% since this time last year, however are down by 14.75%, year to date. The Adacel Technologies share price is up by 19.54% in today’s trade to $0.52 at the time of writing.

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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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