Tag: Motley Fool

Key points

• The IGO share price is more than 3% lower on Monday
• Revenue is down compared to the corresponding half year
• Profit is up

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The IGO Ltd (ASX: IGO) share price is down 3.04% in lunchtime trade following the release of the company’s half year results for the 6 months through to 31 December.

The mining and exploration company’s shares closed on Friday at $11.85 per share and are currently trading for $11.49 per share.

What did IGO report?

• Sales revenue of $377.2 million, down 18% from the corresponding half year
• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $225.9 million, down 7% half-on-half
• Net profit after tax (NPAT) increased 67% from 1H 2021 to $90.7 million
• Cash and net cash holdings of $569.8 million, down 52% from the 1H 2021

What else happened during the half year?

IGO reported that sales revenues were impacted by a decrease in nickel and copper sales. However, this was offset by higher nickel prices.

The IGO share price was supported during the past quarter by a 36% lift in NPAT and 19% boost to EBITDA compared to the first quarter of 2021. The company said the quarterly performance was lifted from a higher contribution from its Nova operations along with a 56% improvement in profitability from its Lithium Joint Venture.

Overall, the half year results were lower as there was no contribution from the divested Tropicana project.

The company paid $45 million during the reporting period to Creasy Group as consideration for its Silver Knight acquisition.

IGO declared a 5.0 cent per share (cps) interim dividend, fully franked. The record date is 4 March with a payment date of 18 March.

What did management say

IGO also provided its annual resource and reserve update this morning. There were significant changes, with the company having divested its Tropicana project while forming the Lithium Joint Venture.

Among other highlights, it reported a 52% increase for its Greenbushes Mineral Resource and a 20% increase for its Ore Reserve with the inclusion of the Kapanga Deposit.

Commenting the the update, IGO’s CEO Peter Bradford said:

Our portfolio has significantly changed during the year as we continued to execute our strategy of being a globally relevant supplier of products that are critical to clean energy.

The key changes are associated with the divestment of IGO’s 30% interest in the Tropicana Gold Mine and the formation of a new lithium Joint Venture (JV) with Tianqi over its Australian lithium assets. This JV included a 24.99% indirect interest in the Talison Greenbushes Operation delivering exposure to a truly world-class asset with low cost, scale and longevity.

What’s next?

Looking ahead, IGO expects the Mineral Resource and Ore Reserves will support continued growth projects at Greenbushes.

According to Bradford:

Greenbushes is the premier hard-rock lithium mine globally, and the expanded Mineral Resource and Ore Reserve supports the continued investment to expand the production capacity to meet the rapidly increasing demand for lithium as the world transitions to clean energy.

Bradford also pointed to Nova’s strong production performance and said, for the year ahead, “We continue to invest in exploration in the near-mine environment with several highly promising exploration targets.”

IGO share price snapshot

The IGO share price has gained 81% over the past 12 months. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 4% over that same time.

So far in 2022, IGO shares are down just under 1%.

The post IGO (ASX:IGO) share price lower as revenue slides 18% appeared first on The Motley Fool Australia.

More reading

• Leading fund manager says these blue-chip ASX shares are buys right now
• Leading brokers name 3 ASX shares to buy today
• What is JP Morgan saying about ASX lithium shares?

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

• JP Morgan downgraded NIB to underweight today
• The broker slashed its price target by 12% to $6.10
• The firm is cautious on the Australian health insurance sector over the medium to long-term
• Analysts at the firm like Medibank as a better alternative
• In the last 12 months the NIB share price has climbed more than 11%

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Shares in private health insurer NIB Holdings Ltd (ASX: NHF) are plunging more than 7% from the open today and now trade at $6.16 apiece.

Investors are selling the NIB share price today following a broker downgrade from investment bank JP Morgan.

In a note to clients, the broker deconstructs why NIB has fallen out of the limelight, and why it urges its clients to sell the insurer. Let’s take a look.

Why’s the NIB share price plunging today?

In the absence of any market-sensitive information from the company’s camp today, it could be that JP Morgan slashed its price target for NIB by 12% to $6.10.

In doing so, it also assigned an underweight recommendation on the stock, downgrading the insurer from a previous neutral rating.

The broker reckons that insures such as NIB and Medibank Private Ltd (ASX: MPL) have benefitted tremendously from a slowdown in COVID-19 health claims in the short term.

However, it also notes that NIB has made promises that policyholders will see benefits returned to them, which poses a risk to long-term profits.

The broker isn’t so rosy on the outlook of the Australian health insurance sector over the medium to long-term, noting widening capital requirements, lower rate increases and headwinds to profits in some business lines.

Specifically, the investment bank alludes to NIB’s Australian Residents Health Insurance unit that appears to be struggling based on the numbers.

JP Morgan reckons that NIB will overreach its margin targets in this segment once again, especially due to its stance on retaining COVID-19 benefits for shareholders.

Analysts at the firm like Medibank as a better alternative, although the team also downgraded its view on NIB’s rival to underweight as well today.

Shares have faltered after the broker released its scathing cross-examination on NIB, and are now trading at their lowest level in almost 6 months.

As seen on the chart below, both shares have tracked each other fairly closely over the last 12 months, with the exception of NIB’s breakout-correction phase in August last year.

Hence, it appears we might be at a crossroads between the pair and the next course of direction in their share prices.

NIB share price snapshot

In the last 12 months, the NIB share price has climbed more than 11%. Since January 1 this year however, it has slipped well into the red and is 12% down.

Not only that, but in the last week of trading, shares have fallen another 6% amid a market-wide selloff that’s been in situ since December last year.

The post Why is the NIB (ASX:NHF) share price sliding 7% today? appeared first on The Motley Fool Australia.

More reading

• How do Medibank (ASX:MPL) dividends compare to NIB?
• Here are Scott Phillips’ top 5 ASX shares for 2022. Is it time to buy?
• Own NIB (ASX:NHF) shares? Here are the key dates for your investor diary in 2022

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 recommended NIB Holdings 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 Bluebet share price is struggling today
• Shares are on the way down despite a record quarter in turnover for the company
• Bluebet also exceeded all its prospectus forecasts this quarter
• The company says it is well-funded to fuel its growth vision into the US market.

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Shares in online wagering business Bluebet Holdings Ltd (ASX: BBT) are struggling today, down 5.1% to 93 cents each at the time of writing.

It seems investors expected more from the company’s earnings update for the quarter ending 31 December 2021 released today.

Bluebet shares slide despite ‘record turnover’ in Q2 FY22

The company released several investment highlights from the quarter, including:

• Exceeding its calendar year (CY) 21 and 1H FY22 prospectus forecasts for all key metrics
• Record turnover in Q2 FY22 of $138.6 million, up 54.8% year on year
• Melbourne Cup week up 62.2% year on year, delivering new records for weekly turnover
• Q2 FY22 net win of $13.8 million, up 51.6% from the year prior
• First time depositors (FTD) increased 86.9% for the quarter
• BlueBet announced its second market access agreement in the US

What else happened last quarter for Bluebet?

Bluebet ended the period with revenue of $138.6 million – a 55% year on year gain – and a net win of $13.8 million, up 52% from the year prior.

The company also maintained a net win margin of 10% through, it says, a “disciplined approach to managing promotions”. This has resulted in a net win margin of around 11% for the 6 months year to date.

Bluebet also exceeded its CY21 and 1H FY22 Prospectus forecasts across all key metrics, according to the company’s announcement. These include turnover of $444.6 million, a bet count of 8.8 million, and active customers of 45,087 (up 13.2%) to name a few.

As of 31 December 2021, Bluebet had $55.4 million in cash on the balance sheet, including customer deposits of $3 million.

Aside from that, the company also announced that its wholly-owned subsidiary Bluebet Colorado LLC signed an agreement with The Wild Card Saloon & Casino, a casino operator based in Colorado, USA.

The agreement has a term of 10 years and enables Bluebet to conduct business-to-consumer (B2C) sportsbook operations online in Colorado, pending regulatory approval.

What’s next for Bluebet?

The company says that it is well funded to work towards its growth vision and has sufficient cash runway to cover its expansion moves.

It also prepared a prospectus last year in relation to an offer of 70.2 million shares at an issue price of $1.14 per share to raise another $80 million.

The company says it has deployed these funds largely in line with expectations to the designated areas, without any cost blowouts.

It also notes that first bets are expected with its Colorado deal in Q1 FY23, whereas it expects first bets from its Iowa outfit in late March this year.

The company didn’t provide any specific earnings guidance in its quarterly update today.

Bluebet share price snapshot

The Bluebet share price is trending down in 2022 having lost around 37% since January 1. This came after sliding 20% in the last week alone.

Zooming out, the company’s shares are lagging benchmarks and are down more than 18% in the last 12 months of trading.

The post Here’s why the Bluebet (ASX:BBT) share price is tanking 5% today appeared first on The Motley Fool Australia.

More reading

• Why is the BlueBet (ASX:BBT) share price surging 10% higher today?
• 3 exciting small cap ASX shares to watch in 2022

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 recommended BlueBet Holdings Ltd. 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 Firebrick Pharma share price is up an additional 22% today
• Shares in the company reached a new all-time high of 75 cents a piece
• Investors take a chance on the pre-revenue nasal spray developer

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The Firebrick Pharma Limited (ASX: FRE) share price is figuratively on fire once again on Monday. Continuing its green streak following its successful initial public offering (IPO) and listing on Friday, Firebrick is soaring again on its second day of trading.

At the time of writing, shares in the nasal spray developer are up 22.6% to 65 cents per share. However, earlier in trade the company had reached a new all-time high of 75 cents per share.

The further surge in the newly listed pharmaceutical company’s valuation now prices it 3.25 times higher than its original offer price.

What’s going on with the Firebrick share price today?

The excitement surrounding Firebrick’s debut on the ASX has extended into Monday following the weekend. However, there is no new information today that we didn’t already know on Friday. Instead, it appears the market is still grappling with what fair value is for the company’s shares.

We covered Firebrick’s IPO previously, but for a quick refresher — the company has developed its patented Nasodine nasal spray product. This medicine is targeted to treat viruses that cause the common cold via the nose. Currently, the company’s product is in clinical trials, with plans to have it approved by regulators in the future.

Additionally, Firebrick’s interest in testing the nasal spray against COVID-19 likely has garnered added attention from investors. This will be conducted in a phase 2 clinical trial this year. Fortunately, the company now has $7 million in its piggy bank to fund these trials following its IPO.

Nonetheless, the volatility in the Firebrick share price is likely partly attributable to the pre-revenue nature of the business.

According to the prospectus, the company’s income for the year ended 30 June 2021 totalled ~$423,000. This was predominantly from a research and development tax rebate. Meanwhile, expenses rounded out at around $2.86 million for the period. As a result, Firebrick burnt $2.44 million in FY21.

Based on the current Firebrick share price, the pharmaceutical company is valued at $69 million.

The post On fire! Firebrick (ASX:FRE) share price surges another 22% on second day of trade appeared first on The Motley Fool Australia.

More reading

• Firebrick Pharma (ASX:FRE) share price launches 165% following ASX IPO
• Firebrick Pharma (ASX:FRE) is floating on the ASX today. Here’s what you need to know

Motley Fool contributor Mitchell Lawler 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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Wesfarmers Ltd (ASX: WES) is one of Australia’s biggest employers.

With a market cap of some $60 billion, the S&P/ASX 200 Index (ASX: XJO) listed retail giant’s subsidiaries include the likes of Bunnings Warehouse, Kmart Australia, Officeworks and more.

While Wesfarmers’ corporate headquarters is located in Perth, Western Australia, the bulk of the company’s operations take place in the more populace eastern states.

In ordinary times that’s worked fine. But with the Omicron COVID variant seeing Western Australia Premier Mark McGowan delay his state’s reopening to the rest of the nation, Wesfarmers’ management has had enough.

Packing their bags

Wesfarmers’ CEO Rob Scott and his management team have been operating in the isolated city of Perth, waiting for the state border to reopen as promised.

Now that the border reopening looks to be again delayed, The Australian reports that Scott and some of his top executives “are this week preparing to relocate to the east coast for an extended period – the first time in Wesfarmers’ 108-year history this has happened”.

Scott said it’s “virtually impossible” to run a national business from Perth under the current travel restrictions.

He said his company is supportive of “a cautious and risk-based approach” to keep the pandemic in check. However, Western Australia’s delay in lifting its border restrictions “is out of step with the rest of the country, and most of the world”.

According to Scott (quoted by The Australian):

We really look forward to the WA government announcing a plan which addresses these issues in the coming weeks. The lack of consideration for national businesses and extended delays is also damaging WA’s reputation with talent.

We’ve benefited in the past from attracting some great talent to WA, with families relocating to create a life here. This is becoming increasingly difficult and is currently almost impossible, and I am concerned that this sentiment will linger.

How has Wesfarmers been performing?

Over the past 12 months the Wesfarmers’ share price is down 4.5%. That compares to a gain of 4.8% posted by the ASX 200.

So far in 2022, Wesfarmers’ shares are down 12%.

The post Wesfarmers (ASX:WES) threatens to fly the WA coop. Here’s the latest appeared first on The Motley Fool Australia.

More reading

• Own Wesfarmers (ASX:WES) shares? 2 of its major businesses are wearing new crowns
• Could this signal the next big acquisition for Wesfarmers (ASX:WES)?
• Here’s a deep dive into the historical returns of Wesfarmers (ASX:WES) shares
• What’s happening to the Wesfarmers share price (ASX:WES) this year?
• Kogan (ASX:KGN) share price hits new 52-week low. Down 37% in 6 months

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 Wesfarmers 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has fought back from early weakness and is trading broadly flat. The benchmark index is currently down 1.5 points to 6,986.6 points.

Here’s what is happening on the ASX 200 today:

Ansell shares crushed

The Ansell Limited (ASX: ANN) share price is crashing lower today after it downgraded its earnings guidance. The health and safety products company revealed that it expects its earnings per share to be between 125 US cents to 145 US cents in FY 2022. This is down materially from its previous guidance of 175 US cents to 195 US cents. Management blamed this on softening demand and COVID-related operational challenges.

Pilbara Minerals’ mixed quarterly update

The Pilbara Minerals Ltd (ASX: PLS) share price is pushing higher today following the release of a mixed second quarter update. Although the lithium miner fell short of its downgraded production guidance, which was given as late in the quarter as 21 December, and hinted that a downgrade to its guidance could be coming, investors have been buying its shares. This appears to be due to its expectations for the already sky high lithium prices to keep rising in the third quarter.

ResMed rises on broker upgrade

The ResMed Inc (ASX: RMD) share price is pushing higher today in response to a bullish broker note out of Goldman Sachs. According to the note, the broker has upgraded the sleep treatment company’s shares to a buy rating with a $35.80 price target. Goldman notes that near-term challenges have created a long-term opportunity for ResMed.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Zip Co Ltd (ASX: Z1P) share price with a 7% gain on no news. The worst performer by some distance has been the Ansell share price with a 17% decline. This follows the release of its trading update and guidance downgrade.

The post ASX 200 (ASX:XJO) midday update: Ansell crushed, ResMed upgraded appeared first on The Motley Fool Australia.

More reading

• Here’s why BHP shares are in the spotlight today
• Ansell (ASX:ANN) share price crashes 20% as guidance slashed
• Pilbara Minerals (ASX:PLS) share price races higher after strong lithium prices offset potential guidance downgrade
• Broker upgrade sends ResMed (ASX:RMD) share price charging higher
• 5 things to watch on the ASX 200 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. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended Ansell Ltd. and ResMed Inc. 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 Energy One share price is rising 6.2% today
• Energy One has entered a share purchase plan to take over CQ Energy Group
• The total cost of the acquisition is $36 million

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The Energy One Ltd (ASX: EOL) share price is soaring today amid news the company has entered an agreement to take over an energy services company.

The company’s shares are trading at $6 in morning trade, up 6.2%. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.39% at the time of writing.

Sydney-based Energy One supplies software and services to energy, environment and carbon trading markets in Australia, the United Kingdom and Europe.

Let’s take a look at what the energy company revealed to the market today.

Energy One share price rises on acquisition

The company announced it will take over CQ Energy Group based in Adelaide. Energy One said it has entered a share purchase agreement to acquire 100% of CQ Energy Group.

CQ Energy provides 24-hour operational energy services to the Australian gas and electricity sector and has 20 staff and more than 30 customers, including wind farms, solar farms and industrial gas providers. Energy One describes the new addition as its “largest acquisition to date”.

The acquisition is the latest in a string of takeovers by Energy One. The company took over Belgium-based Egssis in December 2021 and French-based eZ-nergy in June 2020.

Commenting on the latest takeover, group chief executive officer Shaun Ankers said:

The acquisition of CQ Energy builds on our strategy of developing a global 24/7 energy software and services business.

CQ enhances our capability and now provides us with the opportunity to establish a global energy services operation with control rooms in both the northern and southern hemispheres.

Energy One said the $36 million purchase includes cash and equity over 12 months. The initial outlay involves $26.4 million in cash and $6 million in Energy One shares.

Speaking on the new team, Ankers added:

CQ Energy is a very sophisticated business providing high quality operational services to the Australia [sic] energy trading market (West Coast and East Coast). And we are very excited to welcome them into the family.

I’d like to welcome Reza Evans, Ian Tannebring & Lino Fusco to our leadership team.

Energy One predicts the CQ acquisition will add about $7 million revenue and $4.5 million in earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first financial year after consolidation. Overall, it is expected to grow its current EBITDA by about 50%.

Share price snapshot

Shares in Energy One have slipped 3.07% in the past 12 months. In the past month they have fallen 1.15%, while they’ve dropped 2.44% in the past week.

For perspective, the ASX 200 has returned 5.18% in the last 12 months.

Energy One has a market capitalisation of about $159 million based on its current share price.

The post Energy One (ASX:EOL) share price gains 6% on acquisition news appeared first on The Motley Fool Australia.

More reading

• Wesfarmers (ASX:WES) threatens to fly the WA coop. Here’s the latest
• ASX 200 (ASX:XJO) midday update: Ansell crushed, ResMed upgraded
• VGI Partners (ASX:VGI) share price surges 10% as merger deal sealed
• Here’s why BHP shares are in the spotlight today
• Here’s why the Pointerra (ASX:3DP) share price is leaping 8% today

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Energy One Limited. 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

• VGI Partners share price is lifting on new of a proposed merger with an alternative investments manager
• The proposed merger is with specialist alternative investment manager Regal Funds Management
• The merger would involve VGI acquiring 100% of Regal
• The company says it has the “potential to deliver several attractive benefits for VGI shareholders”

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Shares in global equity manager VGI Partners Ltd (ASX: VGI) are surging higher today and now trade 10% in the green at $4.81 apiece.

The bulls have it today with VGI’s share price following a company announcement regarding a proposed merger with an alternative investments manager.

According to VGI, the proposed merger would “combine two of Australia’s most recognised and successful hedge fund managers and create a market-leading provider of alternative investment strategies”.

A joining of titans

VGI advised it has entered exclusivity and signed a non-binding term sheet with specialist alternative investment manager Regal Investment Fund (ASX: RF1).

It states that Regal Funds Management is a specialist alternatives investment manager “with a heritage built on long/short fundamental investing”.

Regal was founded in 2004 and has offices located in Sydney and Singapore, whilst managing more than $3 billion in capital.

The merger would involve VGI acquiring 100% of Regal in consideration for the issue of new ordinary shares in VGI to existing Regal shareholders, the company says.

Collectively, a newly-amalgamated entity would see an alternative investment manager with a bolus of funds under management totalling more than $6 billion.

The anticipated shareholding of the merged entity would be approximately 60% current Regal shareholders and 40% current VGI shareholders (after adjustments) according to the announcement.

It is understood that VGI will be renamed and have a new ticker assigned to reflect the combined businesses once the transaction is completed.

The deal is still subject to a number of conditions, notwithstanding shareholder vote and the approvals of each of VGI and Regal’s board of directors.

What are the benefits, according to VGI?

The company says a merger of the two companies has the “potential to deliver several attractive benefits for VGI shareholders”.

For instance, it notes investors will have “exposure to a diversified and growing platform of hedge fund, private market and real asset investment strategies” both domestically and abroad.

VGI can also “leverage additional resources from the merged group, including Regal’s extensive investment capability and track record investing in Asian equity markets and private unlisted investments”.

The newly-formed entity will have a board of six directors, with two nominated by each of VGI and Regal in addition to the appointment of two external independent directors, per the release.

VGI shareholders are not currently required to take any action in relation to the Proposed Merger. It is understood that VGI has appointed Jefferies Australia as financial advisor and Allens as legal advisor for the deal.

“VGI has granted Regal a period of six weeks of exclusivity on customary binding terms which include no shop,
no talk, and no due diligence restrictions…and an obligation for VGI to notify Regal if it receives a competing proposal”.

The VGI share price has gained 4% in the last month, however is trading less than 2% in the red since January 1.

The post VGI Partners (ASX:VGI) share price surges 10% as merger deal sealed appeared first on The Motley Fool Australia.

More reading

• VGI Partners (ASX:VGI) share price climbs 10% amid possible merger

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

• Today is the first day the ‘unified’ BHP is trading on the ASX
• The Big Australian now only calls Australia home after ditching London listing
• What does a unified BHP mean for the ASX?

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It’s a big day on the ASX for the ‘Big Australian’… BHP Group Ltd (ASX: BHP) has today claimed its place as the largest ASX company on the share market. Yes, BHP was always a heavy hitter in terms of ASX market capitalisation.

But because of this company’s dual-listing structure, its size was split between the ASX listing and its old listing on the London Stock Exchange.

The ‘Big Australian’ now only calls the ASX home

No more. Last year, BHP announced that it would be ending the 20-year status quo that was initially triggered by the old BHP buying the London-listed Billiton back in 2001. Today is the culmination of this ‘unification’ process.

Ditching its London listing means that the company now only lists primarily on the ASX. There will still be secondary BHP listings in London, New York and Johannesburg. But these will only represent ownership of the ASX-listed shares.

This comes after BHP announced earlier this month that the company has received the approval of all groups of shareholders to unify BHP’s dual-listed share structure. The British government also gave the proposal the green light earlier this month, which cleared the way for unification to take place today.

So today is the first day that all BHP shares trade on the ASX.

This morning, the company released an ASX announcement confirming this process. BHP  told investors that anyone who held the London-listed BHP plc (LON: BHP) shares will have them replaced with new BHP shares on the ASX. These will trade on a deferred settlement basis until 2 February. Until then, the replacement shares will trade under the ticker code ‘BHPN’. But after 2 February, all BHP shares on the ASX will revert to the standard ‘BHP’ ticker.

So how has the BHP share price reacted to unification today? By falling 2.51% at the time of writing to $45.74 a share, that’s how. But even so, expect to see a lot of BHP shares trading on the markets today.

What does a unified BHP mean for the ASX 200?

So how will a unified BHP affect the S&P/ASX 200 Index (ASX: XJO)? Well, it is a fairly dramatic change.

For starters, Commonwealth Bank of Australia (ASX: CBA) has had to relinquish its crown as the ASX’s largest share, perhaps permanently. Before today, CBA was the largest ASX share on the markets by quite a large margin, commanding an 8.2% or so weighting in the ASX 200 as opposed to BHP’s 6.9%.

But now that BHP’s London shares have come back to the ASX to roost, we can flip this equation. For example, the BetaShares Australia 200 ETF (ASX: A200) has already updated its holdings and now lists BHP as its largest share with a weighting of 11.6%. CBA is a distant second with its 8% weighting.

That makes sense. BHP’s ASX-listed market capitalisation now stands at $237.21 billion, whereas CBA remains at $162.35 billion.

So from today, any ASX exchange-traded fund (ETF) covering the ASX 200 Index will now have a lot more exposure to BHP shares than it did last week. For an index known for its bank-and-miner dominance, we just got a whole lot more ‘miner’.

The post Here’s why BHP shares are in the spotlight today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Analysts name 2 ASX 200 mining shares to buy in February
• Is February 2022 the time to buy these 2 beaten-up ASX shares?
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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 Bruce Jackson.

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Key points

• The Pointerra share price is currently up 8.22%, trading at 39.5 cents
• The gain follows the company’s announcement that its annual contract revenue increased 23% last quarter
• Pointerra also plans to expand into the US and UK, as well as boost its Australian operations

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The Pointerra Ltd (ASX: 3DP) share price is surging this morning after the company updated the market on its enterprise sales and annual contract value (ACV).

The company’s ACV increased 23% over the December quarter as Pointerra3D apparently becomes a “must-have” platform for the United States’ energy utility sector. As of today, its ACV stands at US$14.4 million.

At the time of writing, the Pointerra share price is 39.5 cents, 8.22% higher than its previous close.

Let’s take a closer look at the news driving the technology company’s stock.

Pointerra share price soars on US$2.7m ACV growth

The Pointerra share price is in the green after the company announced its ACV increased by US$2.7 million last quarter.

The boost was driven by an increase in both customer numbers and spending, as the company continued to branch into sectors including surveying and mapping, architecture, engineering and construction, utilities, transport, mining, and oil and gas.

Over the course of the December quarter – the results of which were released in the last fortnight – Pointerra was awarded between US$3.12 million and US$4.75 million of contracts within the US energy utility sector.

Additionally, Pointerra says its customers in the sector are pushing their peers to adopt the company’s digital twin solution. That’s expected to drive growth in the future.

As well, the company welcomed a record number of new customers over the December quarter.

The buoyant Pointerra share price is also likely being impacted by its growth plans.

The company will open its first office in the United States and begin operating in the United Kingdom. It’s hoped its UK base will drive growth in Europe, the Middle East, and Africa.

Pointerra is also on the lookout for mergers and acquisitions to add knowledge of people and product in key industries.

Finally, the company will be looking to bolster its personnel in Australia to support customer demand.

As the company’s portfolio of customers matures in coming quarters, it will start reporting ACV totals by target sector.

Its disclosure metrics will also evolve. It plans to start reporting such measures as average revenue per subscription, customer churn, net incremental ACV, and gross margin in the future.

The post Here’s why the Pointerra (ASX:3DP) share price is leaping 8% today appeared first on The Motley Fool Australia.

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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. owns and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra 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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