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The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is soaring to yearly highs on the back of positive phase three clinical trial results.

Shares are currently swapping hands at $3.40 apiece, up exactly 100% from yesterday’s close.

Let’s investigate what triggered the major boost for the drug therapy company today.

Why did Neuren announce?

Neuren reported positive results from phase three trials into the use of trofinetide to treat young women with Rett syndrome. Trofinetide has been granted fast-track status and orphan drug designation for Rett syndrome.

Acadia Pharmaceuticals (NASDAQ: ACAD) is conducting and funding the trials, but Neuren is eligible to receive milestone payments of up to US$455 million (AU$645 million). Neuren is also eligible for royalties on trofinetide sales if the drug is approved by the FDA.

Acadia is planning to meet with the FDA for a new drug application in the middle of 2022.

Neuren predicts it would earn AU$111 million in revenue over 2022 and 2023 for Rett syndrome, plus double-digit percentage royalties on net sales if trofinetide is approved and launched in the US.

Rett syndrome is a rare genetic mutation affecting brain development, primarily in girls.

What did management say?

Commenting on the news driving the Neuren Pharmaceuticals share price today, CEO Jon Pilcher said:

We are delighted with these robustly positive results and are now eager to see trofinetide progress through the regulatory approval process.

We are very grateful to the Rett syndrome community — the patients, their caregivers, study site personnel, physicians and everyone who participated in the Lavender study, as well as in Neuren’s two Phase 2 studies that paved the way.

Neuren Pharmaceuticals share price snapshot

The Neuren Pharmaceuticals share price has skyrocketed 164% this year to date. It has also gained 170% over the past 12 months.

Earlier today, the share price reached $3.56, a yearly high. The yearly low is $1.18.

The post Neuren Pharmaceuticals (ASX:NEU) share price rockets 100% on study results appeared first on The Motley Fool Australia.

More reading

• Oil Search (ASX:OSH) shareholders give green light for Santos merger
• What happened for the ANZ (ASX:ANZ) share price in November?
• ASX 200 (ASX:XJO) midday update: Zip update impresses, BOQ rises
• Missed out on Ethereum? Here’s a possible alternative
• This crypto will outperform both Bitcoin and Ethereum in 2022: expert

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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Shares in oil and gas company Oil Search Ltd (ASX: OSH) are edging higher in early afternoon trading today after shareholders voted in favour of the company’s proposed merger with Santos Ltd (ASX: STO).

Shareholders voted today to decide the company’s fate, amid a long-drawn process that has seen several revised offers along the way.

In the end, Oil Search’s equity holders voted with an overwhelming majority that the merger should go ahead, effectively forming an oil and gas powerhouse in the region. Let’s take a closer look.

Green light granted for merger

On Monday, Oil Search advised that conditions concerning approvals from the PNG Securities Commission were satisfied, allowing progress to the final vote.

Seeking shareholder approval today, the board announced it was intending that all the Oil Search shares held or controlled by them would be cast in favour of the scheme. 

At the meeting, a total of 1,446,111,062 shares represented votes cast by proxy, with more than 95% of these voting in favour of the proposal – well ahead of the required 75%.

The scheme, first announced on 10 September, is still subject to a number of stipulations, including final approval in a second PNG court hearing on Thursday.

If successfully approved, the last day of trading for Oil Search shares will be on Friday 10 December. Trading of “new Santos shares” will commence on Monday 13 December 2021, on a deferred settlement basis.

Oil Search will then become a wholly-owned subsidiary of Santos and be delisted from the PNGX and ASX.

On implementation of the scheme, existing Oil Search Shareholders would own approximately 38.5% of the merged group and existing Santos Shareholders would own the remaining 61.5%.

The effective implantation date will be on 17 December if all goes according to plan. Following this, the new Santos shares will begin trading on 20 December on an ordinary settlement basis.

Speaking on the independent report conducted into the scheme, Oil Search’s chair Rick Lee said:

In its report, the Independent Expert has made an assessment of the underlying value of both Oil Search and Santos and, on the basis of its view of those relative underlying values, has suggested that Oil Search Shareholders are contributing a greater proportion to the underlying value of the Merged Group than the 38.5% which they will receive under the terms of the Merger. However, the Independent Expert also notes the strategic, commercial and funding benefits of the Merger, and has ultimately concluded that Oil Search Shareholders are likely to be better off if the Merger proceeds than if it does not.

Oil Search share price snapshot

It’s been a bumpy ride for Oil Search shareholders these last 12 months, with their holdings only growing by around 4% in that time.

This year to date, Oil Search lags the benchmark indices and has only gained 7%. In the past month, shares are in the red by more than 6%.

The post Oil Search (ASX:OSH) shareholders give green light for Santos merger appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip update impresses, BOQ rises
• Why is the Santos (ASX:STO) share price climbing today?
• Oil Search (ASX:OSH) share price edges higher on merger update
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

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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Even though we’re already a week into December, it’s still worth a look at how some of the ASX’s biggest blue chip shares fared over the month just passed. November ended up being a pretty depressing month for ASX investors and the share market. The S&P/ASX 200 Index (ASX: XJO) went backwards, going from 7,323.7 points at the start of the month to 7,256 points by market close on 30 November – a drop of 0.92%. But how did the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price fare?

ANZ has recently claimed the mantle of the third-largest ASX big four bank after the recent share price slump over at Westpac Banking Corp (ASX: WBC) made it the ‘baby’ of the group. So over November, ANZ shares also had a rather dreary month. This bank started the month at $28.14 a share. But by the end, ANZ had closed at a price of $26.70. That’s a fall of 5.12%. Ouch. That fall is obviously far greater than that of the ASX 200 itself, making ANZ a market loser over November.

But it’s not like the other ASX banks did any better. The Commonwealth Bank of Australia (ASX: CBA) share price fell around 11% over the same period, while Westpac dropped a shocking 20%. National Australia Bank Ltd. (ASX: NAB) fell a comparatively tame 4.91%.

So what made the last month such a dreadful one for ASX 200 banks like ANZ?

ANZ share price cops some November rain

Well, the general market sentiment arguably didn’t help. Bank shares are normally some of the most cyclical blue chips on the ASX boards, often rising and falling by a greater degree than the broader market. This can be put down to how dependent the banks are on the health of the overall economy.

And we did have some depressing news over the month just gone with the emergence of the Omicron COVID variant. This seemed to spook the ASX, as well as share markets around the world, over November. And the banks, including ANZ, were right in the firing line, it seems.

But there’s another reason the ASX share price got caught in some November rain. On 8 November, ANZ shares traded ex-dividend for the upcoming final and fully franked dividend payment of 72 cents a share that investors will receive on 16 December. The value of this chunky dividend left the ANZ share price on the ex-dividend date, so this would have exacerbated ANZ’s share price woes over the month.

It wasn’t all bad news though. As my Fool colleague James covered in late November, ANZ also received some love from a top ASX broker. Goldman Sachs rated ANZ shares as a ‘buy’ with a 12-month share price target of $31.82. That would be more than a 16% gain on today’s pricing if Goldman is onto something.

At the time of writing, ANZ shares are trading at $27.26 each, up a healthy 0.81% so far today. At this share price, the ASX bank has a trailing dividend yield of 5.21%.

The post What happened for the ANZ (ASX:ANZ) share price in November? appeared first on The Motley Fool Australia.

More reading

• Can NAB (ASX:NAB) shares ever close in on CBA’s market cap?
• Leading brokers name 3 ASX shares to buy today
• Why ANZ Bank (ASX:ANZ) is losing market share to other big ASX banks
• Here are the 3 top-performing ASX 200 banks of November
• Here’s why ASX 200 banks are making news today

Motley Fool contributor Sebastian Bowen owns shares of 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 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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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. The benchmark index is currently up 0.5% to 7,278.8 points.

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

Zip update impresses

The Zip Co Ltd (ASX: Z1P) share price is racing higher on Tuesday after releasing an update on its performance in November. According to the release, Zip delivered record monthly transaction volume of $906.5 million during the month. This represents an increase of 52% or $310.5 million over the prior corresponding period and annualises at over $10 billion. This was driven by an 86% lift in transaction numbers to a record of 7.5 million and a 71% jump in customer numbers to 9.2 million.

Bank of Queensland update

The Bank of Queensland Limited (ASX: BOQ) share price is pushing higher after releasing a trading update ahead of its annual general meeting. That update revealed that the regional bank’s growth momentum has continued throughout the first quarter, with strong application volumes across both the housing and business lending portfolios. And while management has revised its net interest margin guidance lower, this was widely expected following recent updates from its peers.

Oil Search-Santos merger update

Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO) shares are rising today after their proposed merger took a step forward. On Tuesday, Oil Search shareholders are voting on the proposal. However, enough proxy votes have been cast prior to the meeting to confidentially predict that the resolution will pass.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Zip share price with a 6% gain following its update. The worst performer has been the Magellan Financial Group Ltd (ASX: MFG) share price with a 4% decline. This follows the announcement of the exit of its CEO, Dr Brett Cairns.

The post ASX 200 (ASX:XJO) midday update: Zip update impresses, BOQ rises appeared first on The Motley Fool Australia.

More reading

• Oil Search (ASX:OSH) shareholders give green light for Santos merger
• Zip (ASX:Z1P) share price jumps 9% after hitting $10 billion milestone in November
• Why the Magellan (ASX:MFG) share price is sinking to 52-week lows
• Bank of Queensland (ASX:BOQ) share price on watch amid FY22 guidance update
• Top broker tips 30% upside for the Brickworks (ASX:BKW) share price. Here’s why

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 shares of and has recommended ZIPCOLTD FPO. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Ethereum (CRYPTO: ETH) went live in 2015, becoming the world’s first cryptocurrency powered by a programmable blockchain. In simple terms, that means the platform is more than a decentralized payments system.

Ethereum’s programmability makes it possible for developers to write code and build self-executing computer programs (smart contracts) on the platform. And those smart contracts form the core of decentralized applications (dApps), including decentralized finance (DeFi) products.

Why does that matter? Like all crypto transactions, DeFi products are secured by cryptography, meaning a network of decentralized miners (or validators) verify transactions, eliminating the need for central oversight. In turn, that makes it possible to lend, borrow, and earn on cryptocurrency without involving banks. And by eliminating those intermediaries, DeFi applications promise to improve access and reduce costs associated with financial services.

For instance, you could earn a 3.06% annual percentage yield (APY) by lending USD Coin to the Compound protocol right now. That’s significantly higher than the interest rate you would earn in a traditional savings account. Powered by that value proposition, Ethereum’s price has skyrocketed over 1,000,000% since hitting an all-time low in October 2015.

Today, Ethereum is the most popular DeFi ecosystem by a wide margin, with $164 billion invested in products on the blockchain. To that end, it still looks like a smart long-term investment, but given Ethereum’s current market value of $491 billion, it probably offers less upside than other cryptocurrencies. For instance, Avalanche (CRYPTO: AVAX) has a market value of just $22 billion. Here’s why this cryptocurrency could make you richer in the long run.

Avalanche: Faster and cheaper

Similar to Ethereum, the Avalanche blockchain supports smart contracts. The key difference is the speed and scalability of the platform. Avalanche is powered by Snow consensus protocols, a type of proof of stake in which transactions are verified through random sampling, rather than by obtaining verification from every validator.

That technical detail makes Avalanche very fast. In fact, Avalanche brands itself as the fastest smart-contract platform in the blockchain industry, as measured by time to finality. For context, Ethereum can process 14 transactions per second (TPS), and each of those transactions are finalized in approximately six minutes (i.e. irreversibly added to the blockchain). But Avalanche can handle 4,500 TPS and it achieves finality in less than two seconds.

So what? Scalability is a significant problem for many blockchains. With a throughput of just 14 TPS, Ethereum is prone to bottlenecks, which result in slower transaction times and higher transaction fees, not to mention irritated users. Avalanche solves that problem, and that has made the platform popular with developers.

Case in point: Despite launching in September 2020, Avalanche is already the fifth-largest DeFi ecosystem, with $13.1 billion invested in products on its blockchain. Also noteworthy, Avalanche already supports 78 DeFi protocols (i.e. smart contracts) — that’s more than fourth-place Solana and third-place Terra combined. Looking ahead, Avalanche is well-positioned to maintain that momentum, simply because DeFi is becoming more popular. But there’s still one more point worth discussing.

Developers can build smart contracts on the Avalanche blockchain using Solidity, the same programming language used to build smart contracts on Ethereum. That compatibility means Ethereum dApps and DeFi products can be deployed on Avalanche, which happens to offer faster speeds and lower fees. In fact, deploying a smart contract on Avalanche costs 90% less than it does on Ethereum. To that end, Avalanche has been called the “Ethereum killer.”

The bull case

DeFi products aren’t free. In exchange for their services, miners and validators collect transaction fees from users, paid in the form of the blockchain’s native cryptocurrency. In other words, as DeFi applications on the Avalanche blockchain become more popular, more investors will have to buy Avalanche cryptocurrency, sending its price higher. 

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

The post Missed out on Ethereum? Here’s a possible alternative appeared first on The Motley Fool Australia.

More reading

• This crypto will outperform both Bitcoin and Ethereum in 2022: expert
• Why Ethereum, Dogecoin, and Solana Fell This Morning
• Crypto investors missing millions after 2 Aussie exchanges collapse
• You could’ve made $1 million investing less than $1,500 in these 3 cryptocurrencies
• Could interest-paying crypto accounts be coming to a CBA (ASX:CBA) branch near you?

Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Ethereum. 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.

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

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While Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) still remain the largest and the most popular cryptocurrencies by far, there is one challenger rising worth recognising.

According to DeVere Group chief executive Nigel Green, Solana (CRYPTO: SOL) is “likely” to outperform both of its big brothers next year.

“I’m confident that a key one to watch in 2022 is Solana, currently the fifth largest crypto by market cap,” he said.

“It started off the year trading at around US$2, now it’s changing hands on the deVere Crypto app for about US$200.”

If you had bought $1,000 of Solana on January 1, you’d now be sitting on about $130,000.

But Green reckons it’s not done yet.

“2022 will be Solana’s breakout year.”

Solana is actually used for a real purpose

Green attributed Solana’s instant popularity to its “masterful technology and its cost-effectiveness”.

Like Ethereum, Solana’s blockchain network implements smart contracts.

“Solana is a blockchain platform that has superior high transaction speeds, processing over 2,500 transactions per second — main rival Ether’s is 15 — and at a lower cost and without compromising decentralisation,” he said.

“This revolutionary tech will ultimately change the way almost all business and financial services are delivered in the future.”

A “growing number” of decentralised finance (defi) apps are shifting from Ether to Solana, according to Green.

“They’re also attracted by the considerably cheaper fees compared to Ether, whose prices have exploded in recent months.”

It has its issues, for sure

It hasn’t all been smooth-sailing this year for Solana though.

Back in September, the network went offline for about 17 hours. The Solana Status social media account at the time explained that the system crashed trying to process 400,000 transactions per second.

According to Green, such incidents are merely growing pains and that it doesn’t impact the long-term outlook.

While Green declined to nominate a price target, back in October he predicted Solana would reach US$250 ($355) by the end of this year. It was trading around $270 on Tuesday.

“In-the-know investors are watching it with interest,” he said.

“There’s no reason why it shouldn’t again outperform headline grabbers Bitcoin and Ethereum next year if the current momentum continues.”

The post This crypto will outperform both Bitcoin and Ethereum in 2022: expert appeared first on The Motley Fool Australia.

More reading

• Why Ethereum, Dogecoin, and Solana Fell This Morning
• Crypto investors missing millions after 2 Aussie exchanges collapse
• Bitcoin (CRYPTO:BTC) price crash dashes crypto’s safe haven status
• Crypto market crash: The latest on Solana, Cardano, Ripple, and Terra
• This crypto could be the Moderna of 2022

Motley Fool contributor Tony Yoo owns shares of Bitcoin, Ethereum, and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin and Ethereum. 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 Sky Network Television Limited (ASX: SKT) is flying higher, up 12.13% to $1.895 per share.

Below we take a look at the New Zealand satellite pay-TV provider’s guidance update for the 2022 financial year (FY22) that looks to be driving ASX investor interest.

What guidance update was provided for FY22?

The Sky Network share price is heading skywards after the company raised its guidance for FY22. The midpoint guidance for earnings before interest, taxes, depreciation and amortisation (EBITDA) improved by 27% while net profit after tax (NPAT) was raised by 96%.

The improved guidance comes following what Sky labelled a “rigorous cost review and consideration” by its Board.

The review saw operating cost estimates slashed by $35 million, with $9 million of one-off savings and $26 million in recurring savings.

With costs revised down, Sky Network increased its EBITDA guidance from $115–130 million up to $150–160 million. It raised NPAT guidance from the previously announced $17.5­–27.5 million up to $40–48 million.

The Sky Network share price could also be getting a lift from the company’s bullish longer-term outlook, with Sky targeting additional recurring savings in FY23 “and beyond” via other transformative initiatives.

The company said that the sale of its Mt Wellington properties was not included in the guidance. While this is progressing, the terms have yet to be finalised.

Commenting on the revised guidance, Sky Network’s CEO Sophie Moloney said:

Our firm strategic focus is on growing revenues and reducing operating costs, particularly against the background of the step-up in rights costs to secure the sports and entertainment content that matters to our customers. We’ve sought to uncover opportunities that are starting to reset Sky’s cost base, leveraging the learnings from operating in a Covid-impacted environment as well as challenging the way we operate our business across every area of spend.

Sky Network share price snapshot

The Sky Network share price is up 22% since this time last year, outpacing the 10% gains posted by the All Ordinaries Index (ASX: XAO) during that same period.

Over the past month, Sky Network’s shares have gained 5%.

The post Sky Network (ASX:SKT) share price soars 12% on guidance upgrade appeared first on The Motley Fool Australia.

More reading

• Here’s why the Recce (ASX:RCE) share price is rocketing 12% today
• Zip (ASX:Z1P) share price jumps 9% after hitting $10 billion milestone in November
• Why is the Metcash (ASX:MTS) share price smashing Coles this year?
• Why Ethereum, Dogecoin, and Solana Fell This Morning
• What’s going on with the Bapcor (ASX:BAP) share price and is it a buy?

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 Recce Pharmaceuticals Ltd (ASX: RCE) share price is soaring today. This comes after the pharmaceutical company provided an update on its clinical trial for the treatment of burn wound infections.

At the time of writing, the Recce share price is up 12.21% to 96.5 cents. In comparison, the All Ordinaries (ASX: XAO) is up 0.51% to 7,567.7 points.

What did Recce announce?

The Recce share price is surging after the company reported positive results for its broad-spectrum antibiotic Recce 327 drug.

The phase I/II study assessed the safety and efficacy of Recce 327 against infectious bacteria on burn wounds in patients.

As such, investigators reviewed the findings and noted a visible infection reduction within the first 24 hours of treatment. Patients with acute infected wounds completely recovered, requiring no further treatment. Investigators adopted a shorter five-day treatment protocol for these patients.

Those who had more severe surface area wounds were given a seven-day timeframe, resulting in a similar outcome.

Initially, the trial had been scheduled to run over the 14 days. Two cohorts of patients would either receive Recce 327 daily or three times per week.

Recce advised that the study is ongoing, with further patient enrolment expected by early 2022.

Once the trial is completed, clinicians will review the results and decide upon the best standards of care for future programs. In addition, burn wound specialists will oversee the delivery of Recce 327 via a spray-on formulation.

The trial is being sponsored by the Western Australian government’s Department of Health. It is taking place at the Fiona Stanley Hospital (Burns Unit) in Perth.

Commenting on the results fuelling the Recce share price today, CEO James Graham said:

We are pleased with the progress of our lead compound, R327, in patients harbouring serious burn wound infections. This initial update builds upon strong pre-clinical data demonstrating fast and efficient killing activity against common and problematic bacterial strains, and we are excited for the potential of R327 in the clinic. We look forward to updating shareholders of further human clinical data points as this trial progresses.

Recce share price summary

Despite today’s euphoric rise, the Recce share price has had a disappointing 12 months, falling by around 20%. When looking at year-to-date, it is hovering around 9% lower.

Based on today’s price, Recce presides a market capitalisation of roughly $149.45 million, with approximately 173.79 million shares on issue.

The post Here’s why the Recce (ASX:RCE) share price is rocketing 12% today appeared first on The Motley Fool Australia.

More reading

• Zip (ASX:Z1P) share price jumps 9% after hitting $10 billion milestone in November
• Why is the Metcash (ASX:MTS) share price smashing Coles this year?
• Why Ethereum, Dogecoin, and Solana Fell This Morning
• What’s going on with the Bapcor (ASX:BAP) share price and is it a buy?
• Qantas (ASX:QAN) share price lifts as airline expands freight capacity

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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The Zip Co Ltd (ASX: Z1P) share price has been a very strong performer on Tuesday.

In morning trade, the buy now pay later (BNPL) provider’s shares are up

Why is the Zip share price rocketing higher?

The catalyst for the rise in the Zip share price today has been the release of an update on its performance in November.

As you might have guessed from the Zip share price performance, the company’s strong growth continued last month.

According to the release, Zip delivered record monthly transaction volume of $906.5 million during November. This represents an increase of 52% or $310.5 million over the prior corresponding period.

Based on November’s performance, the company’s transaction volume is now annualising at over $10 billion.

What were the drivers of this growth?

The release explains that this result was driven by an 86% lift in transaction numbers to a record of 7.5 million and a 71% jump in customer numbers to 9.2 million.

In respect to its customer numbers, this comprises 5.5 million is the USA (up 92%), 2.9 million in the ANZ region (up 27%), 0.2 million in the UK (up 564%), and 0.6 million in Expansion markets. The latter will soon include the Singapore market, where Zip has signed an exclusive agreement with Singtel to support its launch and leverage the Singtel Dash App.

Zip’s Managing Director and Global CEO, Larry Diamond, commented: “November was a very strong month for the Company, and shows the tremendous growth achieved since this time last year with many markets processing BNPL payments for the first time – the Company is now processing annualised volume of more than $10b. Zip now has one of the largest BNPL footprints geographically with the aim of servicing its global merchants and partners in a simple and easy format.”

Zip share price underperformance

Mr Diamond also addressed the underperformance of the Zip share price this year. As I highlighted here, the company’s shares were down 22% year to date to a 52-week low on Monday.

The CEO commented: “Management and the Board would also like to acknowledge the significant volatility in equity markets, the impact to technology and fintech valuations and is taking this very seriously. We enter CY 2022 with strong momentum, in a solid financial position, with continued focus on execution, unit economics and global synergies.”

“We have bolstered the global executive team to better handle both regional and functional execution, and remain driven as ever to achieve the best long term outcomes for our customers, merchants and shareholders. A significant portion of the management team and the employees’ assets and remuneration is tied to the share price, and feels these gyrations alongside our loyal investor base,” he added.

The post Zip (ASX:Z1P) share price jumps 9% after hitting $10 billion milestone in November appeared first on The Motley Fool Australia.

More reading

• Why did ASX BNPL shares get hammered today?
• Why Bapcor, Kogan, Sigma, and Zip shares are dropping today
• Why the Zip (ASX:Z1P) share price is sinking 9% to a 52-week low
• ASX 200 (ASX:XJO) midday update: Metcash jumps, Kogan and Zip sink
• These are the 10 most shorted ASX shares

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 shares of and has recommended ZIPCOLTD FPO. 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 Metcash Limited (ASX: MTS) share price has substantially outperformed Coles Group Ltd (ASX: COL) in 2021.

In the calendar year to date, Metcash has gone up 26% whilst Coles has actually declined almost 3%.

Despite being a much smaller business, Metcash is more diversified. It has three different pillars: food, liquor and hardware.

In food, it’s the largest supplier to independent supermarkets in Australia, namely IGA and Foodland.

Metcash is the second largest player in the liquor market, it supplies around 90% of independent liquor stores in Australia including Cellarbrations, The Bottle-O, IGA Liquor, Duncans and Thirsty Camel.

With its hardware division, it’s the second largest player in the Australian hardware market. Its hardware network now has more than 700 stores across the brands Mitre 10, Home Timber & Hardware and recently Total Tools.

Direction of sales and profit

Investors often like to look at the most recent performance of a business to indicate where the share price could, or should, be trading. The Coles share price and Metcash share price may be influenced by what the respective businesses have most recently announced.

Coles said in its FY22 first quarter that its total sales were up 1.5% year on year, with supermarket sales up 1.8%.

In the first four weeks of the Coles second quarter, supermarket comparable sales were “broadly in-line”, Express volumes were being impacted but expected to make a recovery in the second half as mobility increases.

Looking at Metcash, it just reported its FY22 first half, where overall revenue was up 1.3%. Excluding the loss of 7-Eleven, food sales were down just 0.2%. Liquor sales were up 6.6% and hardware sales were up 17.9%.

Hardware is the profit driver of the business at the moment. Hardware earnings before interest and tax (EBIT) jumped 53.3%, or $34.4 million, to $98.9 million. Metcash’s underlying EBIT increased 13.9% to $231.2 million, so hardware played a significant role in growing profit.

Continuing growth for Metcash

Whilst Coles mentioned in its update that sales were broadly flat in October, Metcash is seeing continuing “strong sales” growth.

In the first five weeks of its FY22, total food sales were up 2.3%, liquor sales were up 7.6% and hardware sales were up 20.1%.

Investors may be factoring in that elevated level of growth into their thoughts about the Metcash share price.

Are Metcash shares good value?

The analysts at Macquarie Group Ltd (ASX: MQG) think that Metcash is a buy, with a price target of $4.70 after seeing the half-year result and how strongly the hardware division performed.

Macquarie notes the ongoing initiatives that Metcash is doing, including investing in e-commerce. But inflation and COVID-19 effects on the supply chain could be problematic.

Based on Macquarie’s projections, the Metcash share price is valued at 15x FY22’s estimated earnings with a grossed-up dividend yield of 6.5% for FY22.

The post Why is the Metcash (ASX:MTS) share price smashing Coles this year? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended 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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