Tag: Motley Fool

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) has had a volatile few years since the pandemic‘s onset. It did an excellent job fulfilling the surge in demand for customer orders when folks were avoiding shopping in person. As economies reopen, sales growth is slowing down but remaining at high levels. Between all of that, founder Jeff Bezos stepped down from his role as chief executive officer of his founded company. 

And now, Amazon’s stock has fallen along with the broader market, creating a favorable opportunity to buy. Let’s look at three reasons investors should buy Amazon stock and one reason to be cautious. 

1. Its cloud computing business is thriving

Amazon’s web services segment (AWS), which provides cloud computing services to enterprises worldwide, grows faster than the business overall. In its most recent quarter, which ended March 31, AWS reported revenue of $18.4 billion. That was up by 37% from the same quarter in the prior year. Increasingly, businesses are choosing Amazon for their computing infrastructure needs. With Amazon’s cloud services, companies can turn what used to be a considerable up-front capital expense into a monthly expenditure.

Fortunately for Amazon, AWS also delivers healthy profit margins. Indeed, in the same quarter mentioned above, AWS earned $6.5 billion in operating income on revenue of $18.4 billion. To put that into perspective, Amazon has not reported an operating profit margin of over 6% overall in the last decade. Without the AWS segment, Amazon would be losing money.

AMZN Operating Margin (Annual) data by YCharts.

Amazon has the leading market share in the cloud industry, which is expected to grow nicely from the estimated $400 billion in annual sales it achieved in 2021.  

2. It’s developing a robust advertising business 

Another powerful reason to own Amazon stock is that it’s built a robust advertising business. Amazon has increased ad sales by more than 25% in its past six quarters. In Q1, ad sales totaled $7.9 billion. Like the AWS segment, advertising is a lucrative business. Besides the initial costs to set up the capability, there is little expense associated with incremental ad sales.

Amazon boasts over 200 million Prime members. These folks have a payment method on file and access to fast and free delivery provided by Amazon. They are also one click away from purchasing a product. There is arguably no other advertising real estate that is so close in proximity to consumer purchase. It’s not surprising that marketers would want the opportunity to influence individuals browsing Amazon’s app and website. 

3. The stock is cheaper than it has been in years 

AMZN PE Ratio data by YCharts.

Making the case to buy Amazon more compelling, the stock is cheaper than in years. Amazon’s price-to-sales ratio of 2.3 and price-to-earnings multiple of 52 is near their lows of the past five years. The company has been caught up in the broad market sell-off, and its stock is down considerably off its highs. 

Reason to hesitate: e-commerce sales growth is slowing 

The one reason to hesitate about Amazon is the near-term headwinds facing its online sales. Consumers boosted spending online at the pandemic’s onset to avoid shopping in person. Now that billions of folks have gotten vaccinated against COVID-19 and brick and mortar stores are reopening, people feel better about leaving their homes. That’s creating a headwind for Amazon, which saw online sales fall by 3% year over year in its quarter ended in March. 

To be sure, it’s a significant slowdown from the 40% growth the business experienced in Q4 2020 and Q1 2021. The trend of falling sales could continue if the threat of COVID-19 continues to fade in consumers’ minds. Yet ultimately, investors should not allow these risks to stop them from buying an otherwise excellent company at a bargain price. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 reasons to buy Amazon and 1 reason to hesitate appeared first on The Motley Fool Australia.

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• 2 reasons Amazon stock is slumping today
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• Will Microsoft and Apple shares finally give way in the stock market’s downturn?
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Parkev Tatevosian has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The ASX share market has seen a lot of declines in the first five months of 2022. But with prices now so much lower, are some of the potential ASX growth share investments now too cheap to ignore?

A decline doesn’t necessarily make an investment the right choice. However, for quality businesses that are growing internationally, this could prove to be an opportune time to evaluate some of the previous high-flying ASX growth shares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The NDQ ETF has seen a decline of 27% since the beginning of the year, which is a hefty drop for an exchange-traded fund (ETF) that represents many of the world’s biggest technology businesses.

Betashares Nasdaq 100 ETF gives Aussies access to names like Apple, Microsoft, Amazon.com, Alphabet, Tesla, Meta Platforms, PepsiCo, Broadcom, Adobe, Costco, Advanced Micro Devices, Qualcomm, Honeywell International, and Applied Materials.

While I wouldn’t want to buy every single one of those names for my portfolio, I like how the NDQ ETF wraps it all up for investors for an annual fee of just 0.48%.

Higher interest rates do, in theory, explain lower share prices. However, I think the collective lower price of most of these technology names makes them more attractive for a potential long-term investment.

Plenty of the businesses in the portfolio are some of the strongest in the world at what they do in my opinion, which makes this ASX growth share an attractive option to me.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Investors have gone cold on the Domino’s share price this year, with it dropping 43% since the start of 2022. The ASX growth share is down around 60% since September 2021.

The company seems to be suffering from both the market sell-off as well as a slow-down of demand as COVID-19 lockdowns lift around the world. Domino’s fed hungry households during 2020 and 2021 as restrictions limited what food options were available.

The first six months of FY22 showed a slowing of sales growth and a decline in profitability. Domino’s reported that network sales rose by 11.1%, but earnings before interest and tax (EBIT) declined by 5.7% to $144.7 million and underlying net profit after tax (NPAT) dropped by 5.3% to $91.3 million.

There were two elements of decline – in ANZ, EBIT fell 6.1% reflecting investment in franchisees, and the Japan EBIT declined by 17.3%.

However, the company has a long-term plan to keep growing same-store sales, its total network number, and to keep investing in the business. It recently opened its 900th store in Japan – it plans to have 1,000 in FY23 and 2,000 stores by 2033.

After a sizeable reduction of the Domino’s share price and price-to-earnings (p/e) ratio, I think it’s better value for how much profit it could be generating five or 10 years from now.

According to Commsec, Domino’s is now valued at 23x FY24’s estimated earnings.

The post Are these 2 sold-off ASX growth shares now cheap bargains? appeared first on The Motley Fool Australia.

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• 2 high quality ETFs for ASX investors to buy after the market meltdown
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• ASX 200 midday update: Westpac result impresses, AVZ halted

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe Inc., Advanced Micro Devices, Alphabet (A shares), Amazon, Apple, BETANASDAQ ETF UNITS, Costco Wholesale, Meta Platforms, Inc., Microsoft, Qualcomm, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and has recommended the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Dominos Pizza Enterprises Limited, and Meta Platforms, Inc. 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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Zip Co Ltd (ASX: ZIP) shares have continued to take a beating with losses of 80% in 2022.

Investors are most likely wondering how low the Zip share price can go following the recent market pullback.

Just last week, the buy now, pay later (BNPL) company’s shares hit a fresh multi-year low of $86.5 cents before holding ground for the time being.

Currently, Zip shares are down 4.89% to 87.5 cents.

So, if you are one of the unlucky investors that stayed on for the Zip rollercoaster ride, is now the time to cut your losses?

Why has the Zip share price been sinking?

The spotlight has been on the Zip share price as selling pressure intensifies throughout the BNPL market.

During the pandemic, a throng of customers adopted the alternate way to pay for purchases in-store and online.

The company recorded strong top line growth and still does to this day. However, it’s the rising bad debts and widening losses that are weighing down Zip shares. 

In its half-year results, the company noted that net bad debts stood at $115.4 million. This compares to $22.4 million written off in the prior comparable period.

On the bottom line, Zip registered a loss of $153.6 million compared to the loss of $139.8 million in H1 FY21.

Management acknowledged a shift in the external environment, arguably faster and more severe than first forecast.

Expansion into less mature markets and the easing of government stimulus packages in the United States caused credit headwinds.

In response, the company has refined its strategy but it is still too early to tell if this will pay off.

Not helping matters is the sharp decline of the S&P/ASX All Technology Index (ASX: XTX), down 30% year to date.

So, is now the time to cut your losses?

With the Zip share price going further down the rabbit hole, you might be wondering if you should hit the sell button.

This evidently comes down to your level of investment, risk tolerance, and how far deep in the red you are.

If you bought Zip shares more than a year ago, you’re likely sitting on losses of more than 80%. That means the share price would need to accelerate 400% to make your initial investment back.

And if you’re down 90%, that’s a 900% increase needed.

It’s important to take emotion out of any trade and acknowledge when you’ve made a bad trade. Always set up a trading plan before you make the decision to invest and stick to your guns.

Of course, selling Zip shares at a loss will offset the tax gains accrued in the current financial year. This is a popular strategy, particularly with tax time around the corner.

If so, you can always look to reinvest the leftover funds into founder-led, high-growth ASX shares.

The post The Zip share price is down 80% in 2022. Should you cut your losses? appeared first on The Motley Fool Australia.

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• ‘Just horrific’: Why this fundie says Zip should abandon its Sezzle takeover
• The Zip share price is rocketing 6% today. Here’s why
• Zip just joined forces with another ASX 200 company
• Zip share price dives to yet another multi-year low
• Is the Zip share price set to hit another unhappy milestone this week?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Tabcorp Holdings Limited (ASX: TAH) share price is catching the eye of investors on Tuesday.

In afternoon trade, the gaming giant’s shares are down 81% to $1.03.

What’s going on with the Tabcorp share price?

The collapse in the Tabcorp share price has been driven by the demerger of the company’s Lotteries and Keno businesses this morning.

These businesses have been spun off and listed separately as The Lottery Corporation Limited (ASX: TLC).

The good news is that while the Tabcorp share price has crashed today, value has actually been created for shareholders.

Prior to the demerger, Tabcorp had a market capitalisation of approximately $11.9 billion. This is based on 2,225,771,703 shares on issue and a share price of $5.34.

Today, eligible shareholders have been given one share in The Lottery Corporation for every Tabcorp share they owned. This means there are now 2,225,771,703 shares on issue for both Tabcorp and The Lottery Corporation.

So, with the Tabcorp share price currently trading at $1.03, it has a market capitalisation of ~$2.3 billion. Whereas The Lottery Corporation share price is fetching $4.63, giving it a market capitalisation of ~$10.3 billion.

This gives us a combined market capitalisation of $12.6 billion, which is $700 million or 5.9% greater than what Tabcorp was valued at pre-demerger.

Why did the Tabcorp demerger happen?

Management decided to push ahead with the Tabcorp demerger on the belief that it would maximise value for shareholders (so far so good!).

It notes that it will create two significant businesses with focused leadership teams and allow each business to adopt a more focused operating profile and capital structure that is more aligned to its core operations.

In addition, management highlighted that the demerger allows shareholders to retain full upside potential from various growth opportunities which may arise for both businesses. It also creates access to new and different investor categories with different investment preferences and ESG criteria.

How have the businesses been carved up?

The Lottery Corporation is the new home of Tabcorp’s Lotteries and Keno businesses. It is an omni-channel business with a portfolio of high profile, recognised brands and games, strong digital growth and a retail footprint across ~7,000 retail outlets/venues.

In FY 2021, these businesses generated 55% or $611 million of Tabcorp’s EBITDA.

New Tabcorp has been left with its wager and media and gaming services businesses, which generated revenue of $2,493 million and EBITDA of $464 million in FY 2021.

Management notes that it will be a leader in omni-channel wagering, racing and sports broadcasting, and gaming services solutions. It believes the business is well positioned for organic growth and potential upside from possible changes in the wagering and gaming industry.

The post Here’s what you need to know about the Tabcorp demerger appeared first on The Motley Fool Australia.

More reading

• The Lottery Corporation share price debuts on the ASX boards
• ASX 200 midday update: Nufarm, Tabcorp and TechnologyOne tumble
• Why is the Tabcorp share price crashing 82%?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most traded ASX 200 shares on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 ASX has long been known as a haven for dividend investors. Perhaps due to our unique system of franking, ASX investors have always loved a good dividend.

And companies have always felt a certain compulsion to give the people what they want. But having the world’s biggest dividend? That is certainly a crown ASX investors would love to have.

Well, it looks like we might get it. Every quarter, global fund manager Janus Henderson Group (ASX: JHG) releases a Global Dividend Index report. This analyses the income-producing qualities of share markets around the world. Its latest report makes for some interesting reading.

Right off the bat, the report finds that global dividend payments jumped a healthy 11% over the first quarter of 2022 (the three months to 31 March).

But it also had some fascinating statistics on ASX dividends. It found that ASX dividends on the whole jumped by 38.9% over the quarter in question. This was largely thanks to one ASX share – BHP Group Ltd (ASX: BHP).

BHP dominates the ASX today in a way it hasn’t for decades. This is largely due to the fact that the mining giant has ended its dual listing on the London Stock Exchange and has rehomed exclusively to the ASX. This means that all of BHP’s shares are now listed on the ASX, making it by far our largest public company.

BHP comes in as the world’s biggest dividend payer

But BHP has also spent the past year or two paying out record dividend payments. Its last dividend was the March interim payment. It was worth a whopping $2.08 per share, fully franked.

That was a very sizeable increase on last year’s interim dividend of $1.31 per share. As it stands today, BHP shares have a trailing dividend yield of a whopping 9.97%.

Well, it’s these recent payouts that have helped to push the company towards the ‘world’s biggest dividend’ crown. Here’s some of what the report said on this matter:

Indeed, almost three-fifths of the Australian Q1 total was paid by BHP alone, distributing $10.8bn to its shareholders, 70% more than the combined total of its Q1 2021 special and regular dividends. With another distribution planned for later in the year, BHP is likely to be the world’s largest payer in 2022 for the second year running. 

But the report also mentioned some other ASX dividend shares, namely Commonwealth Bank of Australia (ASX: CBA) and Fortescue Metals Group Limited (ASX: FMG):

Among other Australian companies, Fortescue Metals suffered from lower iron ore prices and cut its dividend by two fifths. Commonwealth Bank of Australia made a 17% increase as regulatory constraints were eased, although it continues to pay less than its pre-pandemic high.

So if investors are feeling chuffed after BHP’s monstrous year of dividends, there’s a good reason. This is, I’m sure, one award that most BHP shareholders would be pretty pleased with.

The post Looking for the word’s biggest dividend? You’ll find it right here on the ASX 200 appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Nufarm, Tabcorp and TechnologyOne tumble
• Better buy, BHP or Fortescue shares?
• Minority or majority government? Economist says outcome will have little impact on ASX shares
• What’s going on with the Challenger share price today?
• Is Macquarie a quality ASX dividend share worth buying?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 are two truths that most long-term investors come to learn: Not all ASX shares are created equal and not all shares live their glory days at all times.

In fact, some quality ASX shares have tumultuous moments – as evidenced by these stocks that hit their lowest point in years this week.

2 quality ASX shares hitting long-forgotten lows

Spirit Technology Solutions Ltd (ASX: ST1)

For those unacquainted with Spirit Technology Solutions, the company provides business-focused technology and telecommunication services.

The quality company officially hit the ASX in 2016 with its shares trading at around 12 cents for their first few weeks on deck. From there it garnered enthusiasm, reaching a high of around 43 cents in January 2021.

But the past 17 months have been rough on the telco small cap. Its share price has tumbled around 85% since then to trade at 5.8 cents on Tuesday.

In fact, it closed at a new 52-week low of 5.1 cents yesterday. Today, it’s recording a 13.75% gain.

The telco has a market capitalisation of approximately $34 million according to the ASX.

Freelancer Ltd (ASX: FLN)

Freelancer is another quality ASX share reaching a new multi-year low this week.

The crowdsourcing marketplace floated on the ASX in 2013 after offering new shares for 50 cents apiece under its initial public offering (IPO).

It peaked at around $1.80 in 2016 and, in 2021, it hit a multi-year high of around $1.25.

Today, the stock reached an intraday low of 33 cents, marking its lowest point since March 2020.

Sadly, the quality ASX share has been on a downwards slope for nearly 12 months now. Its tumble was exacerbated by a quarterly update last month.

The Freelancer share price slipped 2.4% when the company announced that, over the three months ended 31 March, its cash receipts had dropped 6.1% on those of the prior comparable period.

That was made worse by the Australian Dollar depreciating against the US Dollar. The depreciation brought the company a 6.3% tailwind last quarter.

According to the ASX, Freelancer has a market capitalisation of $147 million.

The post 2 quality ASX shares trading at multi-year lows this week appeared first on The Motley Fool Australia.

More reading

• Why the Spirit share price bounced 12% this morning

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SPIRIT TC FPO. The Motley Fool Australia has recommended Freelancer Limited and SPIRIT TC FPO. 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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Crypto investors often buy Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), or a range of other altcoins in the hope they’ll go up in value.

Sometimes, as in the latter months of 2021, that works out. Sometimes, like much of 2022, it doesn’t.

But Bitcoin, the world’s first crypto, wasn’t solely intended to be an investment asset.

It was also meant to offer people an alternative, outside of traditional banking systems, to send money across the world or purchase things without having to resort to fiat currencies.

While you won’t be able to spend your crypto holdings everywhere yet, a growing number of Australian and international businesses are happy to take your Bitcoin or Ethereum in exchange for their wares.

Luxury goods and airfare with your crypto

Market analyst at CoinSpot Lee Daniels highlights five ways investors can spend their digital tokens right now.

First up, luxury goods.

“In early May 2022, Italian high-end fashion label Gucci announced that it would begin accepting cryptocurrency payments at the end of the month in five of its United States stores as part of a pilot,” Daniels says.

And for those looking to buy a high-end car with their crypto, Daniels points out that Tesla Motors (NASDAQ: TSLA) boss Elon Musk is looking into enabling people across world to buy Tesla merchandise with Dogecoin (CRYPTO: DOGE).

Closer to home, in April, CoinSpot signed a partnership with luxury car retailer Dutton Garage. The agreement opened the door for Aussies to buy cars with Bitcoin, Ethereum, and other altcoins for the first time.

The second thing you can spend your crypto holdings on is travel.

According to Daniels:

In May 2022, Emirates joined a number of other airlines who already accept cryptocurrency such as Latvian airline airBaltic, by announcing its intention to add Bitcoin as a payment option and to make NFT collectables tradable on the company’s website.

There’s also global travel agency Expedia, which accepts “Bitcoin to book over 700,000 hotels from the website’s listings, through its partnership with crypto-friendly travel booking platform Travala”.

How many Bitcoin for that coffee?

If you’re not looking to travel or buy a new luxury vehicle, there’s always food and beverages.

“There are a number of Australian-based food and beverage vendors that are now accepting cryptocurrencies such as fast-food and coffee shops in Queensland, Sydney-based cocktail bars and pubs, and cafes in Melbourne,” Daniels says.

He also points out IGA X-press in Bowen Hills, Queensland. The supermarket now allows customers to pay via Bitcoin, Litecoin, or Binance Coin.

And if you’re thirsting for a soft drink and have only cryptos to spend, fear not.

“Amatil, Coca-Cola’s bottler and distributor in the Asia-Pacific region, has enabled cryptocurrency as a method of payment via its partnership with the Centrapay platform,” says Daniels. “As of 2022, there are now over 2,000 vending machines in Australia and New Zealand which are geared to accept cryptocurrencies to pay for drinks.”

Two other ways you can spend your crypto in 2022

It’s no secret that healthcare costs are ramping up in Australia. These are costs that crypto investors sitting on gains could help offset by paying with Bitcoin or altcoins.

“In Australia, there is a wide range of healthcare providers that accept crypto in exchange for services, including Quality Dental in North Sydney and Tamworth Heart Clinic,” Daniels says.

“Some pharmacies such as Lugarno Pharmacy in New South Wales allow customers to purchase vitamins, prescription medicines, cosmetics and more with cryptocurrencies.”

And finally, if you’re willing to travel across the Pacific, you can spend your crypto on sports tickets and merchandise.

According to Daniels:

In the United States, the Miami Dolphins intend to give home game attendees the ability to pay with Litecoin and Bitcoin when purchasing tickets for the team’s 50/50 raffle.

The Dallas Mavericks also accept Bitcoin as a method of payment in exchange for both game tickets and merchandise.

You won’t be able to buy sports tickets in Australia with Bitcoin yet. But Daniels points out, “The AFL recently partnered with Animoca Brands to launch its own NFT [non-fungible token] marketplace.”

It may be the first step, perhaps, to using crypto in lieu of dollars for your entry ticket.

The post Looking to spend your crypto? Here are 5 things you can buy in 2022 appeared first on The Motley Fool Australia.

More reading

• What to expect for the Bitcoin price heading into June
• Can Bitcoin play a role in a diversified ASX share portfolio?
• Ethereum price rout knocks founder from billionaire’s list. Does he still ‘welcome a bear market’?
• Crypto venture firm’s lessons after $10 million haircut on LUNA losses
• Why Ethereum and Dogecoin are recovering nicely today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Tesla. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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 Pushpay Holdings Ltd (ASX: PPH) share price has burst out of its trading halt earlier than expected on Tuesday.

In afternoon trade, the donation technology company’s shares have jumped 17% to $1.31.

Why is the Pushpay share price jumping?

The Pushpay share price was placed in a trading halt this morning pending the release of an announcement relating to a takeover approach.

Although the company requested the halt until Thursday, it hasn’t needed anywhere near as long to respond to the proposal.

According to the release, Pushpay has confirmed the receipt of an offer from two existing shareholders, BGH Capital and Sixth Street. Combined, these shareholders have a holding of just over 20% in the company.

The release notes that BGH Capital and Sixth Street have advised that they have entered into a co-operation agreement with respect to a potential transaction involving Pushpay.

However, Pushpay has warned shareholders that the proposal is not a definitive transaction agreement and can be terminated immediately by either party on notice to the other.

Furthermore, the company has not entered an agreement with any party, including either or both of BGH Capital and Sixth Street, to implement a transaction.

Instead, it is continuing with a process that is already underway, and is in an early stage with multiple parties, to explore the potential for a transaction which is in the best interests of shareholders as a whole.

Though, once again, it has warned that there is no certainty that this process will result in any transaction.

Unfortunately, Pushpay has neglected to provide retail shareholders with any further details, such as the takeover price that is being proposed. So, they may have to sit tight until BGH Capital and Sixth Street or one of the other “multiple parties” tables a firm offer.

The post Pushpay share price jumps 17% amid BGH Capital and Sixth Street takeover approach appeared first on The Motley Fool Australia.

More reading

• Pushpay share price halted following takeover approach
• Pushpay share price down 5% on full-year results and weak guidance
• Why AUB, Block, BrainChip, and Pushpay shares are sinking
• Why Jumbo, Nufarm, Pushpay, and Vulcan Steel charged higher
• Pushpay share price soars 23% following takeover approach

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has positions in and has recommended PUSHPAY FPO NZX. 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 Lottery Corporation Limited (ASX: TLC) share price has commenced trade on the ASX boards on Tuesday.

In afternoon trade, the lotteries company’s shares are fetching $4.60.

The Lottery Corporation share price debut

The Lottery Corporation share price debuted on the ASX boards this morning following its successful demerger from gaming giant Tabcorp Holdings Limited (ASX: TAH).

Though, whether you can call Tabcorp a gaming giant anymore remains to be seen. Its shares are down a massive 81% to 99 cents at the time of writing, with the balance of power seemingly shifting to the ASX 200’s newest member.

Based on the current Lottery Corporation share price, it has a market capitalisation of approximately $10.24 billion, whereas new Tabcorp is valued at $2.2 billion.

What is The Lottery Corporation?

The Lottery Corporation is the new home of Tabcorp’s lotteries and Keno businesses.

Management highlights that the Lottery Corporation is an omni-channel business with a portfolio of high profile, recognised brands and games, strong digital growth and a retail footprint across ~7,000 retail outlets/venues. This makes it one of the largest in the country.

These businesses continued their solid growth in FY 2021, generating a 14.4% increase in EBITDA. This meant that its Lotteries and Keno businesses contributed 55% or $611 million of Tabcorp’s total EBITDA during the 12 months.

Pleasingly, since then, these businesses have continued their positive form. For example, in February, Tabcorp reported a 15.1% increase in Lotteries and Keno EBITDA to $358 million. Whereas the rest of the business reported earnings declines, which led to group EBITDA falling 5.5% over the prior corresponding period to $529 million.

The good news is that management still sees plenty of growth ahead. It notes that the business offers infrastructure-like asset qualities, with low capital intensity and upside potential from digital growth.

It could also prove to be a good option for income investors. Management highlights that the company will aim to pay out 70% to 90% of net profit after tax excluding significant items.

The post The Lottery Corporation share price debuts on the ASX boards appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Nufarm, Tabcorp and TechnologyOne tumble
• Why is the Tabcorp share price crashing 82%?
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Shares of Woodside Petroleum Limited (ASX: WPL) are rangebound on Tuesday and now trade less than 1% higher at $29 apiece.

Earlier in the session, Woodside had crept up to $29.28 apiece, before receding back down to its current levels. It had closed the day at $28.91 yesterday.

Meanwhile, Brent Crude trades at US$112 per barrel after gyrating upwards in the last few weeks. In wider market moves, the S&P/ASX 300 Metals & Mining Index (ASX: XMM) has climbed 81 basis points on the day.

What’s up with the Woodside share price?

Woodside’s Scarborough project has caused its fair share of controversy along its very short lifecycle to date.

With the newly-elected government now sworn in, Labor leader Anthony Albanese has made commitments to reduce climate emissions by roughly 40% compared to 2005 levels.

However, with a large swing of support towards independents and The Greens simultaneously gripping the election’s result, the new ministry might face pushback as both of these groups are seeking a 60% and 70% reduction respectively.

Greens leader Adam Bandt – whose party picked up three seats in the Senate – was adamant the new government had an obligation for Labor to work with the Greens.

“We’ve been very clear that in this parliament we have to come up with a plan for coal and gas,” Bandt told The Australian Financial Review.

“This has to be the year that Australia’s pollution starts peaking and that we keep coal and gas in the ground.”

However, potential minister for the climate, Chris Bowen has assured that the Labor government will carry its election commitments forward and won’t necessarily be swayed by the other parties.

This sentiment was echoed by former WA premier Colin Barnett, who also told The AFR that “it will be difficult to achieve a tougher target for 2030 when you’ve got a big project like Scarborough.”

“The [Scarborough] project needs to happen, but it’s going to be a dilemma for Albanese because a lot of people would say he’d be breaking his word – the emissions out of Scarborough dwarf everything else,” he added.

“It’s a major project. It guarantees the continuance of the Northwest Shelf at its current production levels and allows the expansion of Pluto,” Barnett concluded.

The Woodside share price has clipped a 32% gain this year to date amid a sector-wide commodity boom that’s seen prices for oil and gas shoot north.

The post What’s boosting the Woodside share price on Tuesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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