Tag: Motley Fool

Key points

• The Bendigo Bank share price is in the green, having gained 1.6% to trade at $8.72
• Its gain come amid news the bank is shaking things up, merging its rural and business banking divisions
• The unification will also bring about a number of executive changes

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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is outperforming the broader market on Tuesday amid news that the bank is combining its business and rural divisions to fast-track growth.

As part of the unification, Bendigo Bank is shaking up its executive team, with a new role to be created and new titles handed out.

At the time of writing, the Bendigo Bank share price is $8.72, 1.63% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.2% while the All Ordinaries Index (ASX: XAO) has gained 0.28%. Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) is recording a 1.7% surge.

Let’s take a closer look at today’s news from the ASX 200 bank.

Bendigo Bank share price gains amid major division shake up

The Bendigo Bank share price is in the green after it announced it will be combining its Rural Bank and Business Bank businesses into one division.

Following the merger, the two businesses will retain their individual brands and will be led by a chief customer officer for the business and agribusiness division – a position the bank is on the hunt to fill.

The change will allow the bank to scale up its services and invest in its future. Bendigo Bank managing director Marnie Baker commented on the changes, saying:

Both the Rural Bank and Business Banking businesses have been positive growth and transformation stories for us. Bringing the businesses together will help us fast track our transformation agenda and achieve our goal of becoming a bigger, better, and stronger bank for our customers and the communities we serve.

As part of the move, Business Bank executive Bruce Speirs has been appointed to the new role of chief operating officer.

Meanwhile, chief customer officer of consumer banking Richard Fennell will take on the role of acting chief customer officer of business and agribusiness.

Rural Bank CEO Alexandra Gartmann has decided to leave her 6-year tenure as of today.

The bank is expected to release its results for the first half of financial year 2022 on 14 February.

ASX 200 banks surging higher on Tuesday

The Bendigo Bank share price is far from alone in its gains today. In fact, nearly all its ASX 200 financials peers are in the green on Tuesday.

The AMP Ltd (ASX: AMP) is the best performing banking stock today, boasting a 5% gain.

Meanwhile, the Bank of Queensland Limited (ASX: BOQ) share price is outperforming that of Bendigo Bank, having increased 2.2%.

Of the big 4, National Australia Bank Ltd. (ASX: NAB) is leading with a 2.6% gain.

Those of Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are up 1.1%, 0.9%, and 0.8% respectively.

And if one is to count Macquarie Group Ltd (ASX: MQG) as a big bank – which, by valuation, it is – it has bested its peers with its 3.2% boost.

The post What’s boosting the Bendigo Bank (ASX:BEN) share price today? appeared first on The Motley Fool Australia.

More reading

• Can the Bendigo Bank (ASX:BEN) 8% dividend yield make up for its share price correction?
• What’s happening to ASX bank shares today?
• The Bendigo Bank (ASX:BEN) dividend is smashing the big four right now
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• How the Bendigo Bank (ASX:BEN) share price went in 2021

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 no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• Marley Spoon share price up 9% on strong revenue growth
• US and Aussie markets post strongest growth
• More supply chain volatility expected

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The Marley Spoon AG (ASX: MMM) share price is up 8.5% in afternoon trade to 70 cents per share.

Shares in the global subscription-based meal kit provider leapt as high as 75 cents in morning trade as ASX investors digested the company’s strong results for Q4 2021, for the quarter ending on 31 December.

Marley Spoon share price lifts on 24% quarterly revenue growth

• Net revenue for FY21 of 322 million euros up 27% year-on-year
• Fourth quarter net revenue of 85 million euros up 24% year-on-year
• Q4 Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of 4.8 million euros
• Year-end cash balance of 39 million euros

(1 euro = AU$1.59 at time of writing.)

What else happened during the quarter?

The 322 million euros in net revenue for FY21 was within the company’s guidance range. The boost in revenue resulted in a 2-year Compound Annual Growth Rate (CAGR) of 56%.

Marley Spoon reported that Australia and the United States drove the fourth quarter revenue growth, with revenue in the Aussie market up 52% and in the US up 15%. The company attributed this to its broader range of product offerings and continued investment into increasing its subscriber base.

Shortly after the end of the reporting quarter, Marley Spoon completed its acquisition of Chefgood Pty Ltd in Australia. The acquisition is intended to expand the company’s customer choice and increase its average revenue per user (ARPU).

What did management say?

Commenting on the results, Marley Spoon’s CEO, Fabian Siegel said:

We are particularly pleased with our team’s strong operating performance leading to the highest quarterly contribution margin of 31% in a challenging operating environment. The contribution margin performance was aided by successful price increases, demonstrating the pricing power our brands enjoy.

We also improved our marketing efficiency allowing us to acquire more customers at costs in-line with previous years despite significant CPM inflation. The contribution margin expansion and disciplined investment in marketing led to an improvement in Operating EBITDA versus previous quarters, landing at €(4.8m), in line with our expectations.

What’s next?

In its guidance for the full 2022 calendar year, Marley Spoon said it will “focus on continued growth within its current balance sheet capacity”.

The company expects customer behaviour to remain volatile along with supply chain disruptions and inflation. Guidance (excluding the contribution of Chefgood) was reported as:

• Mid-to-high teens year-on-year net revenue organic growth (plus full year contribution from Chefgood)
• Contribution Margin in-line with 2021
• Operating EBITDA better than €(15m)

Marley Spoon share price snapshot

The Marley Spoon share price is down 28% so far in 2022. That compares to a loss of 8% posted by the All Ordinaries Index (ASX: XAO).

The post Marley Spoon (ASX:MMM) share price leaps 9% today on revenue growth appeared first on The Motley Fool Australia.

More reading

• Why Boral, Carsales, Credit Corp, and PointsBet shares are racing higher
• Why is the Macquarie (ASX:MQG) share price smashing the other big banks today?
• AGL (ASX:AGL) share price withstands healthcare pressure to exit coal ASAP
• How will ASX shares perform this earnings season? Experts explain what to look for
• Why is the Audio Pixels (ASX:AKP) share price booming 14% today?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Marley Spoon AG. The Motley Fool Australia has recommended Marley Spoon AG. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the month with a gain. At the time of writing, the benchmark index is up 0.3% to 6,989.3 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Boral Limited (ASX: BLD)

The Boral share price is up 6% to $6.24. This morning the building materials company announced a multibillion-dollar capital return for shareholders. According to the release, Boral intends to return $3 billion of surplus capital to shareholders. This will be via a $2.65 per share capital reduction and an unfranked 7 cents per share dividend.

Carsales.Com Ltd (ASX: CAR)

The Carsales share price is up 2.5% to $22.53. This appears to have been driven by a broker note out of Credit Suisse. According to the note, the broker has upgraded the auto listings company’s shares to an outperform rating with a $25.80 price target. Credit Suisse is expecting a solid result from Carsales later this month.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is up 3.5% to $35.07. This follows the release of its half year results which revealed a first half profit well ahead of expectations. Credit Corp posted an 8% increase in both first half revenue and net profit after tax to $203.9 million and $45.7 million, respectively. The latter compares to the market consensus estimate of $42.7 million.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is up 6% to $5.15. Investors have been buying this sports betting company’s shares following a strong night of trade for its peers on Wall Street and in response to a bullish broker note out of Goldman Sachs. According to the note, the broker has retained its buy rating but trimmed its price target on the company’s shares to $9.97. This target is almost double the current share price.

The post Why Boral, Carsales, Credit Corp, and PointsBet shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Broker says PointsBet (ASX:PBH) share price could have 90% upside
• ASX 200 (ASX:XJO) midday update: Credit Corp impresses, Boral’s $3bn capital return
• Boral (ASX:BLD) share price takes off amid $3b return of capital
• Credit Corp (ASX:CCP) share price up 5% after smashing first half profit expectations
• These were the worst performing ASX 200 shares in January

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. owns and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The Sparc Technologies share price is halted at $1.65 today
• It could potentially remain frozen until the company announces a new joint venture
• The trading halt follows the release of the company’s quarterly report yesterday

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The Sparc Technologies Ltd (ASX: SPN) share price has been put into the freezer today as the company prepares to release an announcement to the ASX.

While the company hasn’t let many details on its forthcoming announcement slip, we do know it pertains to a “material joint venture”.

Currently, the Sparc Technologies share price is halted at its previous close of $1.65.

Let’s take a closer look at the graphene-focused technology company’s trading halt.

Why is the Sparc Technologies share price frozen?

The Sparc Technologies share price has been halted until either Thursday morning or when the company releases its news to the market, whichever comes sooner.

Interestingly, it hasn’t been long since Sparc Technologies’ previous trading halt.

In October, the company broke a freeze with news of a joint venture with the University of Adelaide. The pair are working to create ‘ultra-green’ hydrogen – made using solar power.

Today’s trading halt also follows the release of the company’s report for the December quarter, which dropped yesterday. Its release pushed the Sparc Technologies share price up almost 15% on Monday.

Within the report, the company recapped previously announced news of its graphene-based additives. In December, its ecosparc additives were found to perform up to 40% better than other anticorrosive epoxy coatings.

It also noted that, as of 31 December, the company had around $3.4 million in cash.

Looking to the current quarter, the company is planning to launch its ecosparc graphene coating. It will also be advancing its bio-medical sensor project.

The company is also applying product development and testing to its composites and concrete activities.

Excitingly, Sparc Technologies might have hinted at potential partnerships yesterday. It stated it plans to continue “industry partner discussions” regarding the sensor project.

It also said, “[Sparc] will welcome any opportunity to work collaboratively with customers operating within the industrial materials sector.”

Finally, it noted it’s aiming to “establish further agreements with institutions” to support its activities and accelerate the commercialisation of its coatings, composites, and concrete products.

The post Why is the Sparc Technologies (ASX:SPN) share price on ice today? appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best performing ASX hydrogen shares of 2021

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 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 Bruce Jackson.

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Key points

• The Macquarie share price is outstripping the other ASX banks today
• While many of the big four are strugglign to break even, Macquarie shares are up 3%
• Could interest rates be a factor here?

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The S&P/ASX 200 Index (ASX: XJO) is having a decent day of trading on the markets so far this Tuesday. At the time of writing, the ASX 200 is up a healthy 0.33% after an initial dip into negative territory this morning. But that’s nothing compared to the Macquarie Group Ltd (ASX: MQG) share price.

Macquarie shares are currently up a very pleasing 2.76% at $188.68 each. That’s not only a vast outperformance of the ASX 200, but also of Macquarie’s peers in the ASX banking sector.

In contrast to Macquaire’s near-3% rise, Commonwealth Bank of Australia (ASX: CBA) shares are currently up 0.50% at $94.21.  

National Australia Bank Ltd. (ASX: NAB) shares are doing a little better, up 2.03% at $27.68 a share.

Westpac Banking Corp (ASX: WBC) shares have gained 0.67% at $20.44 each.

And the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has gained 0.30% at $26.61 a share. 

So how come Macquarie shares are smashing the other ASX banks so far this Tuesday?

Well, unfortunately, we can’t say for sure. There hasn’t been any major news or announcements out of Macquarie today. Or indeed for a couple of weeks.

But it’s possible that today’s moves have something to do with the upcoming meeting of the Reserve Bank of Australia (RBA). The RBA is meeting today, as it does on the first Tuesday of every month. But this meeting is one that is a little more anticipated than most. Investors are keeping an eagle eye on the central bank as it deliberates over its monetary policy outlook.

Could the RBA meeting be pushing Macquarie shares higher today?

Until now, the RBA has stuck to its guns over interest rates and inflation, describing the prospects of an interest rate hike in 2022 as remote. However, over the past month, the inflation outlook in both Australia and around the world has changed. Higher than expected inflation numbers in the Australian economy have many experts predicting that the RBA will be forced to change up its expectations and entertain the possibility of at least one rate rise this year. Or at least end its quantitative easing (QE) bond buying programs.

Interest rates have a profound influence in all financial markets, given the effect they have on most asset classes. Higher rates mean it is more attractive to park cash in savings accounts and other ‘safe’ investments rather than riskier assets like shares. Additionally, higher rates increase the cost of borrowing money, which can have major implications for many companies (such as those with higher debt burdens) listed on the share market.

So it’s not clear why investors are pushing up Macquarie shares today over the other big four banks. Perhaps this is a bet that whatever the RBA tells us this afternoon will be more beneficial to Macquarie than other ASX shares like the major banks. Or perhaps investors are just finding a renewed interest in Macquarie. After all, this is a company that has sold off rather heavily over the past month or so. Even after today’s rally, the Macquarie share price remains down 10.8% year to date. 

Whatever the reason for today’s rally, it will no doubt be welcomed by Macquaire shareholders.

At the current Macquaire share price, this ASX 200 bank has a market capitalisation of $72.39 billion, with a trailing dividend yield of 3.22%. 

The post Why is the Macquarie (ASX:MQG) share price smashing the other big banks today? appeared first on The Motley Fool Australia.

More reading

• How will ASX shares perform this earnings season? Experts explain what to look for
• Own Westpac (ASX:WBC) shares? Outlook ‘highly uncertain’ says this broker
• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• This broker just upgraded the ANZ (ASX:ANZ) share price to a buy. Here’s why
• ASX 200 (ASX:XJO) midday update: Credit Corp impresses, Boral’s $3bn capital return

Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited. 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 recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The AGL share price is in the green today, up 0.7% at the time of writing
• The company is facing renewed calls from the health sector to shut down its coal-powered stations
• AGL will release its financial results on February 10

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The AGL Energy Ltd (ASX: AGL) share price is clinging to the green today despite pressure from healthcare professionals to close its coal-fired power stations.

The energy company’s share price is trading at $7.15 at the time of writing, a 0.7% gain. Earlier in the session, AGL shares traded as high as $7.17.

Let’s take a look at what’s happening at AGL Energy.

Coal focus

The AGL share price is clinging to the green today after a stellar month. The company’s share price has increased 16.29% since market close on December 31.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.31% today but has soared more than 7% in the past month.

AGL is facing renewed pressure from healthcare workers to exit the coal business, according to reports in The Age newspaper. A letter signed by 600 healthcare workers and 25 health organisations is calling on AGL to close its coal generators by 2030.

An AGL spokesperson told the publication the company respected their views on the need for action. The company spokesperson said:

The exit of thermal generation must happen responsibly and via a co-ordinated plan across governments, industry, regulators and the community.

We believe our thermal generation assets have an important role to play supporting providing reliable and affordable energy to Australians as the energy industry decarbonises.

The price of thermal coal fell 2.15% in the United States in the past 24 hours to US$222.75 per tonne. However, it is up 56% in the past month.

AGL’s Loy Yang power station, near Traralgon in south-east Victoria, is fuelled by coal and produces about 30% of Victoria’s power. Meanwhile, AGL Macquarie’s power generation network also relies on coal and produces 35% of New South Wales’ electricity.

As my Foolish colleague Brooke reported in January, the company is working on several green initiatives. AGL is involved in the Hydrogen Energy Supply Chain Project producing clean liquid hydrogen from the Latrobe Valley in Victoria to Kobe in Japan.

AGL also recently entered an agreement with Fortescue Metals Group Limited‘s (ASX: FMG) to work on an industrial energy hub capable of producing green hydrogen.

AGL will release its half-year results on 10 February.

AGL share price snapshot

The AGL share price has dropped 38% in the past year but has rebounded 16% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% in the past year but has lost 6% so far in 2022.

AGL has a market capitalisation of roughly $4.7 billion based on its current share price.

The post AGL (ASX:AGL) share price withstands healthcare pressure to exit coal ASAP appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares in January
• What is green shorting and which ASX 200 shares are being targeted?
• Why have ASX energy shares become such hot property in 2022?
• Why are AGL (ASX:AGL) shares having such a stellar start to 2022 while the ASX 200 is struggling?
• Top 2 ASX 200 shares of the year so far revealed

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 Bruce Jackson.

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Key points

• The earnings season has kicked off and experts are watching a couple of key details
• Disappointing results from the likes of Ansell point out the importance of sustained margins this earnings season
• An ability to pass on inflationary pressures will be desired among ASX investors

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ASX shares are gearing up for a busy February earnings season, with plenty of companies set to release their latest financial results.

This year is expected to be a challenging one for businesses, with supply chain and inflation issues taking centre stage. However, there could still be some opportunities to be had.

To get prepared for the inundation of results, we take a look at what should be on the radar of investors, according to some experts.

Heavy focus on the bottom line for ASX shares

While the market has been attempting to price in the ramifications of prolonged supply chain issues, the earnings season will pull back the curtain on the real damage toll. Already, we have seen the devastation that a poor earnings report can wreak on shareholders this season.

Yesterday, Ansell Limited (ASX: ANN) published a trading update for its latest half-year. Unfortunately, a sizeable reduction in profits and a slashing of its earnings guidance resulted in the ASX share being punished with a 14% sell-off.

Armytage Private portfolio manager Bradley King highlights this as a likely trend for the February earnings season, The Australian reported. King said:

Look at Ansell’s result. That was basically a car crash on the (earnings) side, but sales were OK. And ResMed, they’re hiring planes to move stuff around and even though their competitor is pretty much self-combusting, they still can’t get the kit in to take advantage of it. I think we’re going to see more of that kind of thing going forward.

Similarly, Kogan.com Ltd (ASX: KGN) suffered a brutal 12% share price fall after it described COVID-19-related disruption in its supply chain for a reduction in its gross profits.

Pressure is on for performance as interest rates look set to rise

Another important facet that experts are keeping an eye on this earnings season is which ASX shares are able to continue to deliver. This has become especially important as the likelihood of interest rate rises has grown in recent weeks.

Investors have been adjusting their risk tolerance based on these expectations. For example, the S&P/ASX All Technology Index (ASX: XTX) is down around 21% since November 2021. As such, Jun Bei Liu of Tribeca notes the importance of earnings for the tech sector, stating:

So it’s a good time to be picking up some companies, but investors should just be really mindful of earnings: if companies miss expectations then certainly investors have proven they’re not very patient in today’s world.

Additionally, investors will be looking for evidence of those ASX shares capable of passing on inflationary costs. Analysts at Macquarie Group Ltd (ASX: MQG) are backing companies with exposure to overseas earnings as winners in the current environment.

A more positive day of earnings results today is being reflected in the S&P/ASX 200 Index (ASX: XJO). The Australian benchmark index is up 0.38% to 6,998 points in early afternoon trading.

The post How will ASX shares perform this earnings season? Experts explain what to look for appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares in January
• Why Ansell, AnteoTech, Dubber, and NIB shares are dropping
• How does the Macquarie (ASX:MQG) dividend compare to the big four banks?
• These are the 10 most shorted ASX shares
• ASX 200 (ASX:XJO) midday update: Ansell crushed, ResMed upgraded

Motley Fool contributor Mitchell Lawler owns Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Ansell Ltd. and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• Audio Pixels shares are booming today
• The company released its quarterly update yesterday
• Most of the progress was largely technical in nature
• The Audio Pixels share price has gained less than 2% since January 1

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Shares in Audio Pixels Holdings Ltd (ASX: AKP) are booming today and are now trading 14% higher at $22.78 apiece.

Investors are showing support for Audio Pixels today despite there being no market-sensitive information out of the company’s camp.

However, it did release its quarterly activities report for the three months ended 31 December 2021 yesterday, which could potentially help explain the momentum in today’s session. Let’s take a look.

Audio Pixels share price spikes on technical advancements

During the quarter, the company achieved several investment highlights, that were “mostly technical in nature”, including:

• Activities supporting the transition of MEMS wafer fabrication to batch processing (production lines, processes and procedures).
• Fabrication and functional validation of Gen-II ASIC controller.
• Activities supporting the transition of Chip Packaging to vendors capable of mass production assembly, processes and procedures.
• Finalising of Fabrication / Production Agreements.
• Development and fabrication of self-contained demonstration systems.
• Expanded the technology portfolio during the quarter as well.

What else happened this quarter for Audio Pixels?

The company notes that its transition to mass production is “progressing according to plans”, whereas the MEMS fabrication is also advancing on time.

Probably the most important update for the company last quarter was the settlement of a comprehensive manufacturing agreement with Shanghai-based Earth Mountain Intelligent Technology Co. Ltd.

Audio Pixels says the deal “secures very significant MEMS production and chip packaging capacity” and will transpose the collaboration from research and development into mass-production.

The company notes it has also prioritised the design and production of self-contained demonstration systems.

These systems are specifically designed to be securely provided to Original Equipment Manufacturers (OEM) in a way that “permits independent technological assessment”.

The company is now awaiting receipt of “packaged chips produced in mass production lines”, which is anticipated sometime in March, per today’s release.

Aside from that, Audio Pixels left the quarter with $750,000 in cash and equivalents on the balance sheet, up from $479,000 the quarter prior. At its current burn rate, the company estimates it has another 2-3 quarters of funding available, including unused financing of $1.6 million.

What’s next for Audio Pixels?

The release notes that management has already begun laying the groundwork to “retool” the company, as it put. It aims to transition from an R&D focused company to “one that is capable of a large-scale global production, marketing and sales”.

It also expects to surpass 200 granted patents in its portfolio later this quarter, after making several refinements to its predictive modelling and algorithms in the last few months.

Management did not provide any specific earnings or expenditure guidance in the quarterly update today.

Audio Pixels share price snapshot

In the last 12 months, the Audio Pixels share price has had a difficult time and is more than 4% in the red.

This year to date, it has taken off and gained a little under 2% since January 1 after rallying another 6% in the past week of trading.

The post Why is the Audio Pixels (ASX:AKP) share price booming 14% today? appeared first on The Motley Fool Australia.

More reading

• How will ASX shares perform this earnings season? Experts explain what to look for
• Audinate (ASX:AD8) share price edges higher on acquisition update
• Why investing in Bitcoin today is a much trickier environment: expert
• Own Westpac (ASX:WBC) shares? Outlook ‘highly uncertain’ says this broker
• Is the Allkem (ASX:AKE) share price a bargain buy after dropping 12% so far this year?

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 Bruce Jackson.

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Key Points

• Audinate shares on the move as Silex Insight video business now integrated
• Upfront cash payment of US$6.5 million, with another US$1.5 million incentivised payout
• Company scheduled to report its half-year results on 14 February

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The Audinate Group Ltd (ASX: AD8) share price is rebounding during early Tuesday afternoon. This comes after the company provided an update on the recent acquisition of a Belgium-based video business.

At the time of writing, the media networking solutions provider’s shares are swapping hands for $8.17, up 2.25%.

What did Audinate announce?

In a statement to the ASX, Audinate advised it has completed the acquisition of the Silex Insight video business.

Founded in 1991, Silex Insight produces video networking products for manufacturers of AV equipment.

The purchase of the Silex video business will allow Audinate to accelerate its strategic vision for integrated audio and video over IP. In particular, this will add breadth and depth to its AV-over-IP product lineup.

The latest addition is expected to increase video hardware engineering capacity, accelerate video product roadmap, and cement critical mass for its European video engineering team.

The total consideration of the acquisition comprises an up-front cash payment of US$6.5 million (A$9.2 million). Furthermore, this is a revenue earn-out of up to US$1.5 million (A$2.12 million) if there’s an uptick in revenue over the next 12 months.

Audinate noted that component shortages are anticipated to constrain revenue for the first-half of the 2022 calendar year. Nonetheless, a strong order book is expected to translate into revenue as supply chain disruptions are resolved.

Audinate CEO Aidan Williams provided an update on the company’s outlook, saying:

We are very excited to acquire a team with widely recognised video hardware expertise and an existing revenue base. The video codecs and deep product expertise in the team, in combination with our Dante networking technology, will enable us to go to market with a variety of full-service video offerings.

This acquisition complements the video software skills in the Cambridge (UK) team we established earlier in the year. Together these two deals significantly enhance our video capabilities and know-how – outcomes that have been achieved in only twelve months, notwithstanding the challenges presented by COVID.

The company is scheduled to report its first-half results for the 2022 financial year on 14 February.

Audinate share price snapshot

Over the past 12 months, the Audinate share price has returned almost 15% to investors. However, when looking at the year to date, its shares are down around 7% in value.

Based on today’s price, Audinate commands a market capitalisation of roughly $632.97 million, with approximately 76.96 million shares on issue.

The post Audinate (ASX:AD8) share price edges higher on acquisition update appeared first on The Motley Fool Australia.

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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. owns and has recommended AUDINATEGL FPO. The Motley Fool Australia owns and has recommended AUDINATEGL FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Bitcoin (CRYPTO: BTC) is enjoying a run higher on the first day of February. The token is up 4% over the past 24 hours to US$38,391 (AU$54,332).

This comes after the world’s No. 1 crypto by market cap posted its worst month in January since 2018’s so-called crypto winter saw the Bitcoin price drop into the US$3,200 range.

Despite today’s gains, Bitcoin remains down 20% year-to-date and down 44% from its 10 November all-time highs.

The token has largely been treated as a risk asset, with investor concerns over rising interest rates seeing cryptos sold off alongside high-flying tech shares. The S&P/ASX All Technology Index (ASX: XTX), for example, is down 21% since mid-November.

And according to an industry expert, crypto investors face a more challenging outlook today than at any time over the past 18 months.

Beware Bitcoin’s volatility

FS Investments chief market strategist Troy Gayeski cautions crypto investors about the wild price swings, more down than up recently, witnessed across much of the sector.

According to Gayeski (quoted by Bloomberg):

Crypto is a very volatile asset class – and I hope that everyone participating in that market is aware of the volatility potential. It’s a much trickier environment than it was 6 months ago, 12 months ago, 18 months ago where it was ‘green-light go.’ Now it’s ‘yellow-light caution’.

If you are planning on investing in Bitcoin, be prepared for some big potential losses.

“I’ve always said if you’re uncomfortable waking up to a 30%, 40%, even 50% decline for whatever reason, you probably shouldn’t own it,” Gayeski said.

Outlook remains cloudy

Nicholas Cawley, Strategist at DailyFX, doesn’t see a big turnaround in the crypto markets any time soon.

According to Cawley (quoted by Bloomberg):

While the sell-off in Bitcoin has been relatively muted going into this week, the outlook for the cryptocurrency market as a whole remains negative with heavy losses seen across a range of once-popular altcoins. If the market as a whole is looking to Bitcoin to lead the way higher, it is most likely to be disappointed.

Proceed with caution!

The post Why investing in Bitcoin today is a much trickier environment: expert appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin. 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 Bruce Jackson.

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