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The AMP Ltd (ASX: AMP) share price kicked up a notch in October. After hitting a multi-decade low of 88.5 cents the month before, it appears the company’s shares are bouncing back.

At Monday’s closing bell, the financial services company’s shares edged 1.85% higher to $1.10.

How did AMP shares fare in October?

Investors pushed the AMP share price higher last month. This came on the back of a positive third-quarter trading update from the company on 21 October. Its shares rose 4.02% that day to reach a 4-month high of $1.18.

For the month, AMP shares rose by just over 9%, which fared much better than the S&P/ASX 200 Index (ASX: XJO). The benchmark index fell by 0.12% in value over the period.

The company’s financial scorecard produced a largely positive performance.

The demerger program is scheduled for completion by the middle of FY22. This will see the transition of the Multi-Asset Group (MAG) from AMP Capital to AMP Australia, creating a superannuation and investment platform business.

AMP advised it will provide a further update on its progress regarding the demerger at an Investor Day on 30 November. In addition, the company will also lay out what’s ahead for the remaining financial year as well as FY22.

What do the brokers say?

Analysts at Citi last month reiterated their outlook to a neutral (high risk) rating for the AMP share price. The broker slapped a price target of $1.25 apiece, implying an upside of 13.6% on the current price.

However, the most recent note came from multinational investment bank, Macquarie Group Ltd (ASX: MQG). The firm put AMP shares on a neutral footing, with a price target of $1.10. Interestingly, investors seem to agree with Macquarie’s latest assessment based on the current AMP share price.

AMP share price review

Over the past 12 months, the AMP share price has fallen around 34% in value. It is also down by around 29% this year to date. When looking over a 5-year time frame, AMP shares are down by a sizable 75%.

AMP has a price-to-earnings (P/E) ratio of 33.90 and commands a market capitalisation of roughly $3.72 billion.

The post Why did the AMP (ASX:AMP) share price have such a great month in October? appeared first on The Motley Fool Australia.

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• Why has the AMP (ASX:AMP) share price leapt 17% in a month?
• What this broker thinks of the AMP (ASX:AMP) share price after its update
• Why AMP, Aristocrat, Brainchip, and Healius shares are racing higher
• AMP (ASX:AMP) share price gains 3% despite FUM falling by $7b
• Can the AMP (ASX:AMP) share price hit $1.25 by Christmas?

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 owns shares of and 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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The Westpac Banking Corp (ASX: WBC) share price was well and truly out of form on Monday.

The banking giant’s shares sank 7.5% to $23.78 following the release of its full year results.

Is the weakness in the Westpac share price a buying opportunity?

The team at Goldman Sachs aren’t convinced the Westpac share price weakness is a buying opportunity.

So much so, this morning the broker downgraded the bank’s shares to a neutral rating and cut the price target on them by 11.5% to $25.60.

While this still offers decent upside of 7.5% for investors, the broker sees better value on offer elsewhere.

What did the broker say?

According to the note, Goldman was very disappointed with Westpac’s weak net interest margin (NIM) outlook and its expenses. It feels the latter makes it hard for the bank to achieve its $8 billion cost target by FY 2024.

This led to Goldman downgrading its earnings estimates meaningfully for the coming years.

It explained: “We revise our FY22/23/24E EPS by -6.0%/-9.1%/-9.5% driven by: i) a weaker NIM trajectory, ii) lower other operating income from asset sales and weaker markets, partly offset by iii) better performance on BDDs.”

“We downgrade WBC from a Buy to a Neutral highlighting the following key drivers: i) the significant reset in the margin at the 2H21 result provides a weak platform for revenue growth in FY22E; ii) with expenses disappointing in 2H21, we believe the potential for WBC to reach its FY24 cost target of A$8.0 bn should be more heavily discounted than previously was the case and we note that our like-for-like FY24E cost forecast is c. A$8.6 bn; iii) the benefits to non-interest income from increased economic activity are set to be offset by a loss of income from divestments, and iv) our revised TP offers only 7.5% upside,” the broker concluded.

The post Why this top broker downgraded Westpac (ASX:WBC) shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why Advanced Human Imaging, ResMed, Western Areas, and Westpac are falling
• Here’s everything to know about the Westpac (ASX:WBC) dividend after its earnings update
• ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn
• Can the Macquarie (ASX:MQG) share price break new highs over $200?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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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Could the Pilbara Minerals Ltd (ASX: PLS) share price be worth considering at today’s value? One broker has had their say.

What is Pilbara Minerals?

Pilbara Minerals is one of the largest lithium miners on the ASX, owning one of the largest hard-rock lithium operations. The Pilgangoora Project in Western Australia’s Pilbara region produces a spodumene and tantalite concentrate.

The company says it is pursuing a growth and diversification strategy to become a sustainable, low-cost lithium product, and fully integrated lithium raw materials and chemicals supplier in the years to come. Pilbara Minerals believes it can become a major player in the lithium supply chain.

It believes there will be increasing demand for clean energy technologies such as electric vehicles and energy storage as the world pursues a sustainable energy future.

Is the Pilbara Materials share price worth buying?

The brokers at Macquarie Group Ltd (ASX: MQG) thinks so, with a price target of $2.80. That implies a potential increase of the share price of more than 20% over the next 12 months, if the broker is right.

A key reason for Macquarie’s optimism is the strong price that lithium is experiencing, which should help Pilbara Minerals’ cashflow as it reaps the rewards of the strong lithium market.

It was on 26 October 2021 that Pilbara Minerals released the results of its third Battery Material Exchange (BMX) auction for spodumene.

A cargo of 10,000 dry metric tonnes (dmt) at a target trade of 5.5% lithia was presented for sale on the digital platform, with a deferred delivery date in February 2022.

There was strong interest in both the participation and bidding, with a broad range of buyers.

Parties placed 25 bids online during the 45-minute auction window, with the company considering the bidding to be “very strong” in light of the deferred delivery date.

Pilbara Minerals said that it intends to accept the highest bid of US$2,350 per dry metric tonne, which on a pro rata basis for lithia content (including freight costs) equates to a cost of approximately US$2,629 per dmt.

How is the lithium miner performing operationally?

The company’s quarterly updates can have an impact on the Pilbara Minerals share price.

For the three months to September 2021, the business saw a “strong” operational performance, delivering record operating cashflow.

It achieved record production of 85,759 dmt of spodumene concentrate, up 11% quarter on quarter from the FY21 fourth quarter. Spodumene concentrate shipments were 91,549 dmt, exceeding guidance of 77,000 dmt to 90,000 dmt. It also sold 36,876 lbs of tantalite concentrate.

In terms of project development, Pilbara Minerals said that the commissioning of the Pilgan processing plant improvement projects have commenced, with the first concentrate production achieved through the new filter press subsequent to the quarter end.

It has also commenced commissioning of the coarse production circuit, with first spodumene concentrate produced from the Ngungaju processing plant subsequent to the quarter end.

Finally, earthworks have progressed for the construction of a 6MW solar farm for the Pilgangoora Project with a power purchase agreement signed with Contract Power Australia after the quarter end.

Based on Macquarie’s projection, the Pilbara Minerals share price is valued at 15x FY23’s estimated earnings.

The post Is the Pilbara Minerals (ASX:PLS) share price a buy today? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Friday
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• Galan Lithium (ASX:GLN) share price tumbles after it posted its quarterly report
• Pilbara Minerals (ASX:PLS) share price on watch after record lithium auction results
• Here are the top 10 ASX shares today

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 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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With the ASX’s first cryptocurrency-themed exchange-traded fund (ETF) listing on Thursday, digital tokens have broken through a new barrier for mainstream acceptance.

But there are still plenty of sceptics who can’t believe assets with no intrinsic value, like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), can maintain their ballooning valuations.

But one prominent venture capitalist has declared his faith that cryptocurrencies will eventually take over the world.

‘Rorting by the powerful’: The injustices of the SWIFT network

According to MH Carnegie founding partner Mark Carnegie, the traditional global money transfer system SWIFT moves around $140 trillion each year.

And he reckons the institutions that run the SWIFT network charge extortionate fees as an international monopoly.

“It’s essentially a casino that is completely rigged by the incumbent banks and the central banks of the world to leg over consumers everywhere,” he told Switzer TV Investing.

“This is purely and simply rorting by the powerful.”

Moving money from A to B in the era of electronics should not cost as much — or take as long — as the SWIFT network does, according to Carnegie.

“If you’re trying to send money to your cousin or your aunt in another country, the money leaves your bank account, [then] arrives somewhere else 3 days later,” he said.

“You get charged fees you don’t understand for reasons which you can’t understand.”

And for many decades, you had no other choice.

But in the past 10 years or so, cryptocurrencies were developed to resolve exactly this injustice.

“Crypto said ‘that’s absolutely ridiculous’. There’s just a couple of entries in a computer file — costs you virtually nothing to do it,” Carnegie said.

“We can attack the [$140] trillion and do it for a fraction of the cost.”

Cryptocurrencies aren’t about those living a comfortable middle-class life

Carnegie pointed out that for the majority of people in developed nations, the choice between SWIFT and cryptocurrencies might not mean much.

But for the billions living in less developed countries priced out of traditional banking, cryptocurrencies could be “life changing”.

“For me, crypto moves from the outside in. It moves from the marginal economies of the world to the mainstream,” said Carnegie.

“I don’t think, given how efficient it is, it’s stoppable at this point… The run is on.”

Authoritarian states, like China, can try to ban cryptocurrencies to crack down on financial transactions they don’t have oversight on. 

But it doesn’t matter, said Carnegie.

“Truth be told… all the miners have moved to different countries. All the guys who understand this area have moved to Singapore.”

‘The world was willing to turn upside down for 30,000 really rich people’

For Carnegie, the global financial crisis 13 years ago really brought home how, ultimately, the regulators are perversely controlled by the giant finance institutions.

“There’s a phrase out there called ‘regulatory capture’ which is when the regulators get captured by the industry,” he said.

“What you saw in the 2008 GFC was that the world was willing to turn upside down for 30,000 really rich people at the same time as they weren’t willing to do anything about climate [change].”

And this triggered the rage the founders of cryptocurrencies felt in creating money that wasn’t controlled by central authorities.

“They just said: ‘This is rigged for the rich and we’re not going to cop it anymore’.”

Now there are 3 camps fighting for future supremacy, according to Carnegie.

“There are the people around Ethereum, with this guy Vitalik Buterin. There’s 2 brothers who run a business called Stripe out of San Francisco… And there’s the incumbent banking system.”

He knows which horse he’d be backing.

“You have 2 people who could be odds-on favourites for the Cox Plate, and one horse with 3 legs,” he said.

“Unfortunately, the incumbent bankers have not a chance in this fight.”

Carnegie has literally bet on the race, with his venture capital funds invested in a business named Crypto Gaming United.

That business is a cryptocurrency play-to-earn platform with the majority of its gamers based in the Philippines, according to Bloomberg.

The post Here’s why cryptocurrencies could take over the world: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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 prospect of persistent inflation and rising interest rates has deflated enthusiasm for growth shares, especially in technology.

However, the ASX still offers up some gems if you know where to look (or who to ask).

Wilsons investment advisor Peter Moran this week nominated a couple of ASX tech shares that he likes the look of:

ASX share with ‘recurring revenue and strong margins’

ReadyTech Holdings Ltd (ASX: RDY) is a maker of people management software with clients in many industries, although it rakes in much of its revenue from the education sector.

Its shares have risen 82% this year and the business has a market capitalisation of more than $400 million.

But it doesn’t seem to attract much attention. The last we heard on The Motley Fool, the stock was charging higher back in September after a strategic acquisition.

Moran reckons the software maker deserves more kudos, according to The Bull.

“This software-as-a-service business is attractive for its high levels of recurring revenue and strong margins. Both are driven by the quality of its software.”

He is rating the stock as overweight while forecasting further growth.

“ReadyTech recently highlighted a potential opportunity to move existing payroll customers to a new superior product that’s more profitable.”

According to CMC Markets, 3 of 4 analysts rate ReadyTech as a strong buy, with the other broker labelling it as a moderate buy.

Tech business that’ll be cash flow positive this year

Shares for fintech Plenti Group Ltd (ASX: PLT) struggled initially after floating in September last year.

But in 2021, the stock has steadily headed up to show a return of 22% so far.

This is another ASX tech share that’s gone under the radar somewhat, with just 3 analysts covering the business.

According to CMC Markets, 2 of them rate Plenti as a strong buy with the third analyst rating it as a moderate buy.

Moran agrees that it’s a tempting purchase at the moment.

“We expect Plenti to reach a $1 billion loan book and become cash flow positive by the end of December this year,” he said.

“Our rating is overweight.”

Last month’s performance update for the second quarter showed encouraging signs, according to Moran. Plenti shares actually headed up 7% on the day.

“The second quarter update confirmed continuing strong loan origination across all three of its lending segments. Loan origination increased from $3.3 million a day in the first quarter to $3.9 million a day in the second quarter.”

The Sydney company now has a market capitalisation of $238.5 million.

The post 2 ASX tech shares I’d buy right now: expert appeared first on The Motley Fool Australia.

More reading

• Why the Plenti (ASX:PLT) share price is soaring 7% today

Motley Fool contributor Tony Yoo 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 Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech 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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If you’re wanting to add some ASX dividend shares to your portfolio, then the two listed below could be ones to consider.

Here’s why analysts are positive on these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retail group behind popular store brands such as The Athlete’s Foot, HYPE DC, and Platypus. The company has also recently acquired Glue Store and has a number of fledgling store brands with the potential to grow their footprints materially in the future.

While FY 2022 will be a tricky year because of lockdowns and a strong comparable period a year earlier, the future remains very bright. This is due to the popularity of its brands and its expansion opportunities.

The team at Bell Potter are very positive on the company. The broker currently has a buy rating and $2.90 price target on its shares. Its analysts are also forecasting dividends per share of 9.3 cents in FY 2022 and 13.3 cents in FY 2023.

Based on the latest Accent share price of $2.46, this represents yields of 3.8% and 5.4%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to consider is Australia’s largest telco, Telstra. After several disappointing years of earnings declines and dividend cuts, Telstra’s outlook is now the best it has been in over a decade.

This is due to the success of its T22 strategy and the recent announcement of the T25 strategy that will replace it. Telstra’s CEO, Andrew Penn, highlighted that T22 was based on transforming the company, whereas T25 will be about driving growth.

And the company certainly has some bold targets. Telstra is aiming for sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY 2021 to FY 2025.

Since then, it has announced a deal with the government to acquire Digicel Pacific. This is expected to boost its earnings further in the coming years.

The team at Goldman Sachs are very positive on the company. Goldman currently has a buy rating and $4.40 price target on its shares. The broker is also forecasting 16 cents per share dividends for FY 2022 and FY 2023, before an increase to 18 cents per share in FY 2024 and then 19 cents per share dividend in FY 2025.

Based on the current Telstra share price of $3.92, this will mean yields of 4.1% for the next couple of financial years.

The post 2 excellent ASX dividend shares named as buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Accent Group. 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) was back on form and started the week with a solid gain. The benchmark index rose 0.65% to 7,370.8 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to give back some of these gains on Melbourne Cup Day. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower this morning. This follows a mixed start to the week on Wall Street which in late trades sees the Dow Jones up 0.1%, the S&P 500 down 0.1%, and the Nasdaq trading 0.3% higher.

Reserve Bank meeting

The Reserve Bank of Australia will be meeting today to discuss the cash rate. While the market is expecting the central bank to keep rates on hold at the current record low of 0.1%, it is also expected to signal the end of quantitative easing, scrap its yield target framework, and could bring forward its rate hike guidance.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a decent day after a solid night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.55% to US$84.03 a barrel and the Brent crude oil price has risen 1.1% to US$84.63 a barrel. An improving demand outlook boosted prices.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could rise today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.5% to US$1,792.7 ounce. The precious metal appears to be trading in a narrow range ahead of the Federal Reserve meeting this week.

Westpac shares downgraded

The Westpac Banking Corp (ASX: WBC) share price will be on watch today after being downgraded by analysts at Goldman Sachs. This morning the broker downgraded the bank’s shares to a neutral rating with a $25.60 price target. Goldman commented: “We revise our FY22/23/24E EPS by -6.0%/-9.1%/-9.5% driven by: i) a weaker NIM trajectory, ii) lower other operating income from asset sales and weaker markets, partly offset by iii) better performance on BDDs.”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why Advanced Human Imaging, ResMed, Western Areas, and Westpac are falling
• Here’s everything to know about the Westpac (ASX:WBC) dividend after its earnings update
• ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn
• Can the Macquarie (ASX:MQG) share price break new highs over $200?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 Global Lithium Resources Ltd (ASX: GL1) share price took off today following a company update on its recent equity raise.

At Monday’s closing bell, the lithium explorer’s shares finished the day 34.02% higher to 65 cents a pop.

Global Lithium completes placement

In its release, Global Lithium advised it had received firm commitments for its strategic placement to raise $13.6 million.

The company highlighted strong support from a major lithium industry player, Yibin Tianyi. The lithium chemical arm of Contemporary Amperex Technology Co (CATL) invested $6.2 million for a 9.9% interest in Global Lithium. CATL is arguably the world’s biggest electric vehicle producer.

The remaining amount ($7.3 million) came from an array of institutional and sophisticated investors.

The offer will see approximately 36.88 million new ordinary shares issued at a price of 37 cents each. This represents around a 31% discount to the last closing price of 48.5 cents on 28 October (before going into a trading halt).

Global Lithium will use its existing placement capacity to create the new shares for institutional and sophisticated investors. Under listing rule 7.1, this allows up to 15% of its total shares to be issued without shareholder approval.

Furthermore, the company will seek shareholder approval at its annual general meeting (AGM) in December for the Yibin Tianyi placement.

The directors of Global Lithium have also taken up the decision to participate in the capital raise. This too will be subject to shareholders giving the nod at the AGM.

What’s the money for?

The company will primarily use the proceeds to accelerate lithium exploration at the Marble Bar Lithium Project (MBLP). In particular, the funds will be allocated to the following:

• Further lithium resource extension, targeting and regional exploration drilling
• Initial exploration drilling along the southern extension of the greenstone belt
• Further exploration at the company’s under-explored gold prospects, including the Twin Veins project
• Completion of preliminary metallurgical test work program; and
• Pursue potential growth opportunities.

Global Lithium managing director, Jamie Wright commented:

To be able to secure support from a lithium industry participant with the credibility of Yibin Tianyi is a strong vote of confidence in our Company and we look forward to developing our relationship with them over time.

The capital raising funds provide us with the ability to ramp up our activities on site as we seek to grow our project and we are looking forward to a busy 2022 period.

Drilling is continuing at our MBLP and we will update the market as we start to receive results.

About the Global Lithium share price

Adding to today’s rise, Global Lithium shares have gained around 225% since listing on the ASX in May. The company’s share price reached an all-time high of 69 cents today.

Based on valuation grounds, Global Lithium presides a market capitalisation of roughly $57.83 million, with over 88.9 million shares outstanding.

The post Global Lithium (ASX:GL1) share price explodes 34% higher on capital raising update appeared first on The Motley Fool Australia.

More reading

• Here’s why the Global Lithium (ASX:GL1) share price rocketed 15% before a trading halt

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 Appen Ltd (ASX: APX) share price has been marching upwards off of its lows during the past month. Despite this, the data annotation company hasn’t released a price-sensitive announcement since late August. This beckons an eyebrow raise in light of the recent performance.

Shares in Appen settled at $11.08 at the end of Monday’s trading session, adding 3.1% in the process. Today’s gain means the Appen share price has now delivered a head-turning 23% over the last month. For comparison, the S&P/ASX 200 Index (ASX: XJO) added 1.3%. Meanwhile, another member of the WAAAX shares, Altium Limited (ASX: ALU) climbed 10%.

So, what gives? Why is a share price that was crushed 65% in the last year suddenly showing some signs of life?

Let’s take a look.

Why has the Appen share price been performing the last month?

It wasn’t too long ago that blood was in the streets of the Appen share price. Following downgrades to the company’s guidance, investors scurried to the lifeboats of a potentially sinking ship. As a result, the value of Appen descended along with the waning sentiment.

Since then, some time has elapsed and the acquisition of Quadrant Global has been completed. At the same time, investors’ nerves seemed to have settled as the share price finds a groove around the low double-digit price point.

Additionally, retail market participants don’t seem to be the only ones looking at Appen with fresh eyes recently. As we have previously covered, analysts at Citi have retained a buy rating on Appen shares with a 12-month price target of $17.

Furthermore, insiders within the Appen management team and board of directors have been loading up lately. According to notices, Richard Freudenstein and Venessa Liu have both purchased shares during the past few months. Notably, board member Freudenstein bought up $313,941 worth of Appen shares at the end of August.

Considering all these points in conjunction with each other, there is potential the broader market is beginning to see value in the Appen share price.

For reference, the company currently trades on a price-to-earnings (P/E) ratio of 33. This compares to the Australian IT industry average P/E ratio of 45 times.

The post The Appen (ASX:APX) share price has jumped 23% in the last month appeared first on The Motley Fool Australia.

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• Is the Appen (ASX:APX) share price dirt cheap?
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Motley Fool contributor Mitchell Lawler owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Appen Ltd. The Motley Fool Australia owns shares of and has recommended Altium and Appen 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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The Pioneer Credit Ltd (ASX: PNC) share price has come out of a trading halt to accelerate to a 2-month high today. The financial service provider announced two positive updates which had led investors to load up on its shares.

At one point during early afternoon trade, Pioneer shares rose as high as 60 cents apiece. However, after some profit-taking, its shares have retraced to close at 58 cents, up 23.40%.

What did Pioneer update the ASX with?

In its release, Pioneer advised it has secured a $200 million four-year senior debt facility agreement with Fortress Investment Group.

In addition, the company amended the expiry date for its medium-term notes until 2026 and increased the size to $60 million.

It is expected that both the senior debt facility along with the medium-term notes will reduce Pioneer’s cost of funding. This will provide the company with ample firepower to pursue growth opportunities. The $260 million of senior and subordinated facilities frees up $32 million on the balance sheet.

Pioneer managing director, Keith John commented:

Upon completion, we expect Pioneer’s enhanced capital structure will return the business to profitability.

By introducing flexibility into our balance sheet, we will be able to aggressively compete in the acquisition of PDP’s1 and firmly establish Pioneer as the top challenger brand in the industry.

Furthermore, our demonstrated ability to grow the Pioneer performing arrangements portfolio will continue to drive liquidations and realise the value of our future investments.

Pioneer also completed a $5.4 million capital raise to boost its liquidity profile. Institutional and high-net worth investors took part in the offer.

The company issued each share at a price of 60 cents each. This represents a 27% premium on last Thursday’s closing price of Pioneer shares at 47 cents.

The Company revealed a significant turnaround for FY22 and expects earnings growth for years to come.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is projected to be more than $59 million. This is $5 million more than what was achieved in FY21.

Net profit after tax (NPAT) is also expected to rise to $1.5 million, up from a negative $19 million the year before.

Pioneer share price summary

Over the past 12 months, Pioneer shares have lost around 20%. Year-to-date hasn’t been so positive, with the company share price flat for the period.

Based on valuation grounds, Pioneer presides a market capitalisation of roughly $38.56 million, with 71.4 million shares on issue.

The post Here’s why the Pioneer (ASX:PNC) share price raced 23% higher on Monday appeared first on The Motley Fool Australia.

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