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The All Ordinaries Index (ASX: XAO) is not having a fun end to the week’s trading so far this Friday. At the time of writing, the All Ords is down by 0.46% at 7,654 points.

But one ASX share is leaving this index in the dust today. That would be the Laybuy Holdings Ltd (ASX: LBY) share price.

Laybuy shares are currently up an extraordinary 41.94% at 22 cents a share after closing at 16 cents a share yesterday and opening at the same price this morning. So what could be causing such an enthusiastic investor pile-on into Laybuy shares today?

Well, sadly, it’s not entirely clear what has sparked this dramatic jump in pricing. There are no major pieces of news or announcements out of Laybuy today. Or for a few days in fact.

The last major development we got from Laybuy was the news that it is set to be kicked out of the S&P/ASX All Technology Index (ASX: XTX) on 20 December. But that was a week ago.

Why is the Laybuy share price rocketing today?

There has been some recent news surrounding the entire buy now, pay later (BNPL) space that Laybuy is a part of though. As my Fool colleague Brooke covered earlier this week, Financial Counselling Australia made some waves when it found BNPL was being misused due to its exclusion from credit provision laws. It also found that BNPL companies were failing to support customers in hardship.

We also covered potential new laws that the government is considering that would bring BNPL regulation into line with other payments earlier this week as well.

If you’re wondering why these developments might be causing the Laybuy share price to jump so violently today, consider this. Before this morning’s open, Laybuy shares had lost more than 25% of their value since the start of the week. Even after today’s massive jump, the Laybuy share price is still down by close to 3% over the past 5 trading days.

It appears all of this talk of increased BNPL regulation has caused some significant volatility in the Laybuy share price. Today’s jump could just be some investors who wanted to buy up big after the steep falls earlier in the week.

Whatever the cause of today’s moves, it will no doubt come as a relief for shareholders.

At the current Laybuy Holdings share price, this BNPL company has a market capitalisation of $39.44 million.

The post Why is the Laybuy (ASX:LBY) share price rocketing 42% today? appeared first on The Motley Fool Australia.

More reading

• Done deal: Santos (ASX:STO) and Oil Search (ASX:OSH) merger becomes effective
• Why Grange, Iluka, Perpetual, and Telix shares are rising today
• Which ASX dividend ETF offers the highest income yield right now?
• Grange Resources (ASX:GRR) share price soars 24% on supersized special dividend
• Why did the Xero (ASX:XRO) share price have such a lousy month in November?

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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It’s official.

The long-awaited merger between S&P/ASX 200 Index (ASX: XJO) energy shares Santos Ltd (ASX: STO) and Oil Search Ltd (ASX: OSH) just became effective.

Below we look at the joint merger announcement released by Santos at lunchtime today.

Santos and Oil Search merger now effective

Today, Santos advised that its merger with Oil Search is officially effective. This follows earlier approval from Oil Search shareholders, and a green light from the National Court of Papua New Guinea yesterday.

Oil Search shareholders will receive 0.6275 new Santos shares for each Oil Search share they hold on the record date of 14 December.

The market cap of the newly merged ASX 200 energy company is estimated at $22 billion.

Today marks the last day of trading on the ASX and PNGX for Oil Search shares.

New Santos shares will start trading on the ASX and PNGX on a deferred settlement basis next Monday 13 December. They will begin trading on a normal settlement basis on 20 December.

What did management say?

Commenting on the merger becoming effective, the Santos chairman Keith Spence said:

The merger combines two industry leaders to create a regional champion of quality, size and scale with a unique and diversified portfolio of long-life, low-cost oil and gas assets.

We look forward to integrating our businesses to create one high performing team – with a vision of becoming a global leader in the energy transition.

Santos CEO, Kevin Gallagher, added:

Santos and Oil Search are stronger together and will have increased scale and capacity to drive a disciplined, low-cost operating model and unrivalled growth opportunities over the next decade.

The merger creates a company with strong and diversified cash flows, providing a platform to deliver shareholder returns and successfully navigate the transition to a lower carbon future.

Additionally, the merger builds on our industry-leading approach to ESG through the combination of Santos’ leading carbon capture and storage capabilities with Oil Search’s social programs in PNG and North America.

How’s the Santos share price tracking today?

Santos and Oil Search shares have fallen during intraday trading on Friday.

At the time of writing, the Santos share price is $6.46, down 2.49%. The Oil Search share price is $4.03, down 2.66%.

The post Done deal: Santos (ASX:STO) and Oil Search (ASX:OSH) merger becomes effective appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Oil Search (ASX:OSH) share price dips despite PNG court approval of Santos (ASX:STO) merger
• ASX 200 (ASX:XJO) midday update: Sydney Airport takeover update, Santos falls
• Santos (ASX:STO) share price edges higher amid Barossa project sale
• 5 things to watch on the ASX 200 on Thursday

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a disappointing note. At the time of writing, the benchmark index is down 0.5% to 7,349.8 points.

Four ASX shares that are not letting that stop them from pushing higher are listed below. Here’s why they are on form today:

Grange Resources Limited (ASX: GRR)

The Grange Resources share price has jumped 24% to 75.5 cents. This morning the iron ore pellet producer announced that it will pay a special dividend to shareholders. According to the release, thanks to its strong performance in 2021, the company will pay a fully franked 10 cents per share dividend later this month.

Iluka Resources Limited (ASX: ILU)

The Iluka share price is up 7% to $9.40. Investors have been buying the mineral sands producer’s shares today after it was the subject of a bullish broker note out of Macquarie. According to the note, the broker has retained its outperform rating and lifted its price target on the company’s shares to $12.00. This was driven by a favourable outlook for zircon, rutile, and rare earth prices.

Perpetual Limited (ASX: PPT)

The Perpetual share price is up 3% to $36.09. This also appears to have been driven by a bullish broker note. According to a note out of Citi, its analysts have upgraded this fund manager’s shares to a buy rating with a $40.40 price target. Citi believes recent share price weakness has created a buying opportunity for investors.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is up 5% to a record high of $7.86. This morning the biopharmaceutical company announced that its marketing authorisation application (MAA) submission in Europe for Illuccix has successfully progressed to the final stage of regulatory assessment. Illuccix is the company’s lead product and used for prostate cancer imaging.

The post Why Grange, Iluka, Perpetual, and Telix shares are rising today appeared first on The Motley Fool Australia.

More reading

• Grange Resources (ASX:GRR) share price soars 24% on supersized special dividend
• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
• Here’s why the Telix (ASX:TLX) share price is falling today
• Standouts: 3 ASX biotech shares that outperformed in November
• Telix (ASX:TLX) share price lifts 7% on new distribution agreement

Motley Fool contributor James Mickleboro owns TELIXPHARM DEF SET. 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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When it comes to the ASX boards, there are dozens and dozens of exchange-traded funds (ETFs) to choose from. Back in the day, ETFs used to come in a ‘you can have any ETF you want, as long as it’s an index fund’ mould. But today, if you can think of a sector, country, trend or commodity, chances are there’s an ETF for it. But what about ASX dividend ETFs?

Yes, there are indeed a number of ETFs on the ASX that specifically focus on providing dividend income. So let’s dig into a few of them, and see which one is offering the biggest yield right now.

Vanguard and iShares offer up ASX dividend income ETFs

First up is the Vanguard Australian Shares High Yield ETF (ASX: VHY), the ASX’s largest dividend-focused ETF. VHY currently invests in 62 ASX dividend shares, the most heavily weighted of which are Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), BHP Group Ltd (ASX: BHP), National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

VHY charges a management fee of 1.25% per annum and has returned an average of 7.88% per annum over the past five years. Its trailing dividend distribution yield is currently sitting at 5.02%.

Next, we have the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD). This is another popular dividend ETF from BlackRock. This ETF has 48 holdings, the most heavily weighted of which are Woolworths Group Ltd (ASX: WOW), Wesfarmers, BHP, Coles Group Ltd (ASX: COL) and Fortescue Metals Group Limited (ASX: FMG).

IHD charges a management fee of 0.3% per annum and has returned an average of 5.97% per annum over the past five years. Its trailing dividend distribution yield is presently at 5.36%.

What about SPDR and VanEck?

Up next is the SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI). This is a more concentrated fund than the two above, holding 32 ASX shares at the latest update. The largest of these are Fortescue Metals, BHP, Rio Tinto Limited (ASX: RIO), Wesfarmers and Mineral Resources Limited (ASX: MIN).

SYI charges a management fee of 0.35% per annum and has returned an average of 6.6% per annum over the past five years. Its trailing dividend distribution yield is currently sitting at 7.78%.

Finally, we have the VanEck Morningstar Australian Moat Income ETF (ASX: DVDY). DVDY is our most concentrated income fund we’re checking out today, with just 25 holdings at the latest data. Its top holdings are Wesfarmers, Woolworths, ASX Ltd (ASX: ASX), Transurban Group (ASX: TCL) and APA Group (ASX: APA).

DVDY charges a management fee of 0.35% per annum. This particular fund hasn’t been around as long as the ones above. Its inception date is September 2020. Since then, it has returned an annual average of 17.32% (remember, that isn’t a fair comparison to the funds above). Its trailing dividend distribution yield is currently sitting at 3.42%.

Foolish Takeaway

So as you can see, Vanguard’s VHY ETF has returned the most over the past five years to its investors, accounting for both capital growth and dividend income. It also offers the lowest fees on this list. However, the SPDR SYI ETF currently offers the largest income potential, going off of trailing yield.

So one of these funds might suit differing preferences to another, depending on individual investing goals. One thing is for sure though. If you’re after an ASX dividend income ETF, you are certainly spoilt for choice!

The post Which ASX dividend ETF offers the highest income yield right now? appeared first on The Motley Fool Australia.

More reading

• Grange Resources (ASX:GRR) share price soars 24% on supersized special dividend
• Why did the Xero (ASX:XRO) share price have such a lousy month in November?
• The Afterpay-Square takeover deal is worth $9bn less now
• 2 rapidly growing ASX e-commerce shares
• Home Consortium (ASX:HMC) share price struggles despite ‘transformational year’

Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited and Vanguard Australian Shares High Yield Etf. 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 APA Group, COLESGROUP DEF SET, and Wesfarmers Limited. The Motley Fool Australia has recommended 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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The Grange Resources Limited (ASX: GRR) share price is soaring on Friday after the iron ore pellet producer announced a supersized special dividend for shareholders.

At the time of writing, Grange Resources shares are swapping hands for 76 cents, up 24.59%.

Grange Resources rewards shareholders

The board’s decision to announce a special dividend has excited investors and prompted many to get in on the action today.

According to its release, Grange Resources will pay a special dividend of 10 cents per share to shareholders. This comes off the back of the company’s strong performance in 2021, thanks to record iron ore prices realised.

Previously, the board declared a final dividend of 2 cents in February and an interim dividend of 2 cents in August. However, after assessing the capital requirements of the company, the panel elected to reward Grange shareholders.

The special dividend marks a 150% increase on the 2021 calendar year dividend of 4 cents per share. It’s also worth noting that the dividend is fully-franked, which means that shareholders will receive tax credits.

ASX investors must be on the company’s register before the ex-dividend date of 15 December to receive the dividend. Shareholders will receive their payment on 29 December.

About the Grange Resources share price

Over the past 12 months, the Grange Resource share price has surged by 171%. Its year-to-date gains are about 153%.

The Grange Resources share price reached an all-time high of 91 cents in late July, followed by heavy falls in the months continuing. Since then, the share price has gradually recovered to where it is today.

Based on today’s price, Grange Resources commands a market capitalisation of $879.5 million. It has approximately 1.16 billion shares outstanding.

The post Grange Resources (ASX:GRR) share price soars 24% on supersized special dividend appeared first on The Motley Fool Australia.

More reading

• Why did the Xero (ASX:XRO) share price have such a lousy month in November?
• The Afterpay-Square takeover deal is worth $9bn less now
• 2 rapidly growing ASX e-commerce shares
• Home Consortium (ASX:HMC) share price struggles despite ‘transformational year’
• The Arafura Resources (ASX:ARU) share price has tumbled 22% in a month. What’s going on?

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 Bruce Jackson.

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It’s getting further and further away now, but cast your minds back to November, and you might remember that it wasn’t a great month for the ASX share market. The S&P/ASX 200 Index (ASX: XJO) ended up going backwards over the month that was, falling around 0.92% between the start of the month and the end. But how did the Xero Limited (ASX: XRO) share price do?

Xero arguably remains one of the hottest ASX 200 growth shares on the market. It has delighted investors with a return of close to 750% over the past 5 years alone. Since 2012, the return has been closer to 3,000%.

But Xero shares have been struggling more recently. This online accounting software company is ‘only’ up 0.08% over the past 12 months. And year to date in 2021 so far, the company is down around 6%. So how did November treat the Xero share price?

Well, Xero began November at a share price of $149.51. When the month wrapped up on 30 November, Xero closed at $144.84. Yes, that means Xero had a big loss for the month, down approximately 3.12%. As you can tell, that’s significantly worse than the broader ASX 200’s performance (more than triple its losses). So what happened for Xero?

Why did the Xero share price underperform the ASX 200 in November?

Well, Xero’s lacklustre performance over November could be blamed on the company’s first-half results that it posted back on 11 November. The company reported revenues of NZ$505.7 million, up 23% from the previous period. Total subscribers increased 23% to 3 million, while Xero’s gross margin also widened by 1.4% to 87.1%.
But as my Fool colleague Mitchell dug into at the time, it seemed to be the “shift in company earnings from a $34.5 million profit in 1H FY21 to a $5.9 million loss in 1H FY22 might have put investors offside”.

Another factor that might have been at play for Xero last month was ASX broker sentiment. During the month, the Fool covered two brokers who slapped ‘sell’ ratings or equivalent on Xero shares in the wake of its half-year results. On 15 November, we covered Macquarie’s ‘underperform’ rating and $130 share price target. Then on 16 November, we looked at UBS’s ‘sell’ rating and $88 share price target.

To be fair, not all brokers were bearing on Xero during the month. We also looked at Citi’s ‘buy’ rating on Xero, replete with its $160 share price target. But it was likely that the combination of its half-year results and these mixed opinions from brokers was largely responsible for Xero’s poor performance over November.

Today thus far, the Xero share price is aksing $139.72 a share at the time of writing, down 0.90% for the day. At this share price, Xero has a market capitalisation of $20.77 billion.

The post Why did the Xero (ASX:XRO) share price have such a lousy month in November? appeared first on The Motley Fool Australia.

More reading

• Are these 2 ASX tech shares good buys in December?
• How to snare a multi-bagger ASX share: expert
• 3 reasons why the Xero (ASX:XRO) share price could be a high-quality buy
• Why Afterpay, Liontown, Northern Star, and Xero shares are falling
• Are Xero shares worth their $21bn valuation? Motley Fool analyst Chris Copley weighs in

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. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. 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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It has been another disappointing day of trade for the Afterpay Ltd (ASX: APT) share price.

In afternoon trade, the payments company’s shares are down over 4% to $96.05.

Why is the Afterpay share price falling today?

Investors have been selling down the Afterpay share price today after another pullback in the Square share price overnight.

On Thursday night, Square saw its shares fall 4% during regular trade and then a further 0.5% in after hours trade to US$186.00.

As Square is in the process of acquiring Afterpay in an all-scrip deal, the value of the takeover rises and falls with the Square share price.

What does this mean the takeover deal?

In light of the above and with Afterpay shareholders voting on the takeover next week, I thought I would look to see what these latest declines mean for the proposed transaction.

In August, the two parties agreed an all-scrip deal which will see Afterpay shareholders receive a fixed exchange ratio of 0.375 shares of Square Class A common stock for each Afterpay share they hold.

At the time, the Square share price was trading at US$247.26, which implied a transaction price of approximately $126.21 per Afterpay share. This valued the deal at approximately US$29 billion or A$39 billion.

However, while this offer was an attractive 30.6% premium to the Afterpay share price at the time ($96.66), the weakness in the Square share price has since wiped out almost all of this premium.

So much so, the offer now represents a takeover price of just ~$97.50, which is less than one percent higher than where Afterpay’s shares were trading prior to the offer. It also values the transaction at approximately A$30 billion, wiping ~A$9 billion off the deal.

And perhaps adding further displeasure to shareholders is that fact that this implied transaction price is 39% lower than Afterpay’s 52-week high of $160.05.

This sets the scene for a very interesting vote at next week’s extraordinary general meeting.

The post The Afterpay-Square takeover deal is worth $9bn less now appeared first on The Motley Fool Australia.

More reading

• Could this ASX share really be the next Afterpay (ASX:APT)?
• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
• More pain for ASX buy now, pay later shares in 2022: expert
• How to snare a multi-bagger ASX share: expert
• Here’s why ASX BNPL shares are in the spotlight today

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 AFTERPAY T FPO. The Motley Fool Australia owns and has recommended AFTERPAY T 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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There are some e-commerce ASX shares that are increasing in size really quickly.

The e-commerce sector has really taken off after the onset of the COVID-19 pandemic as consumer behaviours changed.

Some businesses are taking advantage of the tailwinds and are reporting high levels of revenue growth as they increase their capabilities and plan for growing operating leverage.

Cettire Ltd (ASX: CTT)

Cettire is a luxury online retailer which sells many tens of thousands of products from lots of different luxury brands.

The convenience of its offering and free returns is resonating with customers. FY21 was a huge year for the business, with sales revenue increasing by 304% year on year to $92.4 million and active customers jumping 285% to 114,800.

It’s a global business. More than 90% of its revenue was international in FY21. It achieved a product margin of 37% on an average order value of $723.

That fast growth continued for the e-commerce ASX share in the first four months of FY22 for the period to 31 October 2021. Sales revenue (which is after returns) jumped 172% to $57.8 million. Active customers jumped 220% year on year to 158,260.

Cettire founder and CEO Dean Mintz said:

The focused investment to further enhance Cettire’s solid foundations is delivering results. Having invested in customer acquisition and executed strongly, October monthly traffic increased 379% year on year. In addition, we are seeing very positive early signs from the migration to our proprietary storefront, with sales growth in “migrated” markets outpacing the company.

Airtasker Ltd (ASX: ART)

Airtasker describes itself as Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people who want to work. It wants to enable people to reach the full value of their skills, whilst providing truly flexible opportunities to work and earn income.

Despite all the impacts of lockdowns and difficulties, the company managed to achieve year on year revenue growth of 38% in FY21, which came with a gross profit margin of 93%. The FY22 first quarter – particularly impacted by lockdowns in Australia – still saw gross marketplace volume (GMV) growth of 6.2% year on year.

The e-commerce ASX share is still in the early stages of its international expansion, with first quarter international GMV up over 100% driven by “strong growth” in the UK. In the US it’s launching in the city markets of Dallas, Kansas City and Miami.

Not only are lockdowns seemingly over, but Airtasker said at its AGM that it is also seeing a strong positive movement in its average task value. Initially, Airtasker partially put this down to a labour shortage, but it’s also seeing more Aussies turning to the service for higher value tasks that are increasingly complex.

The company is focused on ensuring a positive first time customer experience, which is an important factor for growth according to management. It’s focused on improving this for growing engagement and revenue. Airtasker is also launching new products to drive further growth.

It’s currently rated as a buy by Morgans with a price target of $1.27.

The post 2 rapidly growing ASX e-commerce shares appeared first on The Motley Fool Australia.

More reading

• What’s with the Cettire (ASX:CTT) share price today, up 9%?
• 2 top ASX shares for December
• Morgans names 2 exciting ASX small cap shares to buy
• 2 high-growth ASX shares profiting from the e-commerce boom
• 2 ASX growth shares to buy this month: analysts

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. owns and has recommended Cettire Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Cettire 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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Shares in ASX-listed property and fund manager Home Consortium Ltd (ASX: HMC) are falling today and are currently trading at $7.51 apiece. Earlier, HomeCo shares were in the green and up nearly 0.8%. But, they have since retracted those gains, and are nearly 2% in the red.

Meanwhile, the broader market is also down today, with the S&P/ASX 200 Index (ASX: XJO) trading 0.45% lower.

HomeCo shares are in the red currently as investors respond to the company’s annual general meeting (AGM) where it provided an overview of FY21 operations and its outlook for FY22.

It’s been a busy period for the group of late, having listed two new real estate investment trust (REIT) vehicles on the ASX in recent months. Read on for more details.

What did HomeCo announce in its AGM?

In its AGM, HomeCo’s managing director and group CEO, David Di Pilla, gave an overview of the company’s FY21 operations and its outlook in FY22.

The release notes that FY21 was a “transformational year” for the company and that these growth trends have continued into FY22.

Most notably, HomeCo refers to the successful listing of HealthCo Healthcare and Wellness REIT in early September and the proposed merger of the HomeCo Daily Needs REIT and Aventus Group that was announced in mid-October.

Following these moves, the group’s total assets under management (AUM) will grow to approximately $5 billion compared with $900 million since listing in October 2019, per the release. That represents a 441% growth schedule in that time period. 

As such, HomeCo touts that it is now “well on the path towards our ambition to become Australia’s alternative asset manager of the future with scalable growth platforms across real estate and in the future private equity, infrastructure, and credit”.

Alongside this, the group delivered a 145% total return for shareholders to enjoy last year, making it the “best performing constituent in the S&P/ASX 300 A-REIT index” in FY21.

Following the proposed Aventus transaction, Home Consortium will manage around $5 billion of external AUM via two ASX-listed vehicles that will generate “high quality and recurring capital light management fees”.

HomeCo says the growth outlook for the merged group has an identified development pipeline of $450 million and is targeting at least a 7% return on invested capital (ROIC).

The company also recently announced $200 million of acquisitions in its HealthCo Healthcare and Wellness REIT, which will increase the portfolio to $850 million on an as-complete basis, per the release.

What’s the outlook for Home Consortium?

In its report, the company reaffirmed its FY22 guidance of pre-tax funds from operations (FFO) per security of 26 cents.

This figure represents an upward revision of 41% on previous guidance in August 2021 and 89% growth on top of FY21.

The company also announced its next major growth initiative in the AGM today, called HMC Capital Partners.

HomeCo believes there is a gap in the Australian market for a specialist alternative asset manager. It reckons the new initiative will give Aussie investors exposure to “carefully constructed portfolios of real assets” that are protected against the downside and uncorrelated to the equity market.

As such the company reckons HMC Capital Partners has the potential to further accelerate the growth and diversification of its alternative funds management platform.

The new venture will target three central investment themes, including high conviction strategic stakes in ASX-listed entities, private equity and structured credit.

It will target an internal rate of return (IRR) of 15% while providing a 3-5% income yield, HomeCo says.

In the past 12 months, the Home Consortium share price has climbed 94% after rallying another 88% this year to date.

The post Home Consortium (ASX:HMC) share price struggles despite ‘transformational year’ appeared first on The Motley Fool Australia.

More reading

• The lithium ASX share that’s still cheap: expert

The author has no positions 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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The Arafura Resources Limited (ASX: ARU) share price has been struggling over the past 30 days despite the company’s silence. Over that period, it has slipped from 24 cents to trade at just 19 cents today, representing a 22.08% drop.

So, what might be weighing on the rare earth elements producer’s stock lately? Let’s take a look at what the company has been up to lately.

What’s dragging on the Arafura share price?

Back in October, Arafura released its activities report for the first quarter of financial year 2022 detailing a 26% increase in the neodymium-praseodymium price.

The surge was spurred by global supply chain security risk, environmental legislation constraints, and strong demand for permanent magnets.

The last time the market heard non-price sensitive news from the ASX company was on 29 November when it released its annual sustainability report.

Within it, the company stated it is drawing up a plan to achieve its goal of reaching net-zero emissions by 2050. It also reiterated that it had signed on to the United Nations Global Compact in financial year 2021.

Arafura Resources’ chair, Mark Southey, commented on the company’s future plans:

2022 is going to be a year of delivery for Arafura. With ESG at the forefront of what we do since the beginning, we have great confidence in our strategy and our team to make a Final Investment Decision [on the Nolans Project] in [the second half of] 2022.

The Nolans Project houses neodymium-praseodymium in the Northern Territory.

However, the price of neodymium-praseodymium has flattened recently, which could be dragging on the Arafura share price.

According to the Shanghai Metals Market, the price of neodymium-praseodymium took off in late November. However, the latest price data as of 3 December showed the price had stagnated.

Interestingly, the Arafura share price didn’t seem to respond to the neodymium-praseodymium price’s upwards movement last month.

The company isn’t alone in its slump. The share price of Arafura’s fellow ASX rare earths developer, Australian Strategic Materials Holdings Ltd (ASX: ASM) has slipped by almost 16% over the past 30 days.

The post The Arafura Resources (ASX:ARU) share price has tumbled 22% in a month. What’s going on? 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. 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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