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Fears are looming as the Evergrande crisis intensifies this week. The Chinese real estate developer is beginning to stretch its luck as it misses its third interest payment to bondholders. Although, some analysts believe the government is devising ways to conduct damage control on any fallout.

Despite the heightening troubles among China’s property developers, the S&P/ASX 200 Index (ASX: XJO) is pushing upwards on Thursday. At the time of writing, the Aussie market is up 0.68% to 7,322.2 points.

Let’s deconstruct the latest details in the Evergrande story.

Clipping the wings of a shaky industry

The Chinese property developer, Evergrande, has received its third strike. The company, which is strapped with a burdensome debt of more than $400 billion, was unable to fulfil its recent debt obligations according to bondholders. This included some bondholders not receiving coupon payments to the tune of US$148 million on April 2022, April 2023, and April 2024 notes.

For Evergrande, this means its grace period is nearing — and if it is unable to pay US$119 million by 23 October, it will default. This potential collapse has many investors around the globe concerned about spill-on impacts. However, analysts believe the Chinese government is planning on a controlled fall to mitigate widespread effects.

Commenting on this, managing director of Orient Capital Research Andrew Collier, stated:

What the government is doing is this kind of a managed reconstruction that is trying to scare the property market away from any further debt-fuelled growth by not bailing out Evergrande.

For instance, Beijing is nudging the banks to release some cash to the property market now to provide padding to the property market. However, it all remains to be one complex balancing act. On the one hand, the government wants to tighten the belt on debt-fuelled property speculation. While on the other, China doesn’t want the entire property sector to falter and bring down economic growth.

Bigger than Evergrande

While the media has its teeth deeply sunk into the Evergrande headline, the problems extend beyond the one developer.

This week, smaller developers Modern Land and Sinic Holdings have motioned to defer repayments due later this month. A request was made to the company’s respective bondholders to delay the US$250 million (each) interest payment for an additional three months.

Investors will be keeping a close eye on these companies and Evergrande over the coming months. Until then, markets will likely exhibit continued volatility as uncertainty lingers.

The post Evergrande missed another milestone payment, what could it mean? appeared first on The Motley Fool Australia.

More reading

• Whitehaven Coal (ASX:WHC) share price slumps despite positive profit outlook
• Own CBA (ASX:CBA) shares? Here’s the bank’s latest stance on climate pressures
• Can the BOQ (ASX:BOQ) share price hit $11 by the end of 2021?
• Top broker tips Santos (ASX:STO) share price to climb 17%
• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Whitehaven Coal Ltd (ASX: WHC) share price is falling today despite the company releasing a positive quarterly report.

The company states record-high coal prices will see its profits increasing soon, helping it to become debt-free in early 2022.

That’s particularly impressive given Whitehaven owed $787.5 million at the end of financial year 2020.

However, the market doesn’t seem to be sharing Whitehaven’s positive sentiments.

At the time of writing, the Whitehaven Coal share price is $3.25, 1.36% lower than its previous close.

Let’s take a closer look at the pure-play coal miner’s performance over the September quarter.

The quarter that’s been for Whitehaven

The Whitehaven Coal share price is slipping today despite good news for the 3 months ended 30 September 2021.

The company has announced its bottom line has begun to be bolstered by record-high thermal coal prices, which reached an average of US$167.52 per tonne over the September quarter, according to the GlobalCOAL Index. That represents a 54% increase on that of the June quarter.

As of 13 October, the GlobalCOAL Index puts the price of thermal coal even higher, at US$232.06 a tonne.

The increased prices have likely boosted confidence in Whitehaven’s expectation of being in a net cash position in the March quarter of 2022.

However, Whitehaven didn’t realise such astronomical prices over the quarter just been. The company’s realised average thermal coal price for the September quarter was US$142 per ton – 15% less than the index’s average price.

The disparity was due to most of Whitehaven’s thermal coal book having been priced in previous periods and its fulfilment of previously agreed-upon fixed-price sales. Additionally, some of its sales were delayed from previous quarters.

However, the company expects to see its profits boosted in coming months.

Finally, here’s a breakdown of Whitehaven’s technical performance over the quarter just been:

• Run-of-mine production of 5.2 million tonnes – up 15% on the prior corresponding period (PCP);
• Saleable coal production of 4.7 million tonnes;
• Total managed coal sales of 4.6 million tonnes – down 23% on that of the PCP;
• Managed own coal sales of 4.2 million tonnes – down 25% on that of the PCP;
• Total equity coal sales of 3.9 million tonnes;
• Equity sales of own coal of 3.4 million tonnes –  25% less than PCP; and
• As of 30 September, it had managed coal stocks of 3.2 million tonnes ­– 80% more than it did as of 30 September 2020.

Whitehaven Coal share price snapshot

Despite today’s dip, the Whitehaven Coal share price has been performing well so far this year.

It has gained 97% since the start of 2021. It’s also 245% higher than it was this time last year.

The post Whitehaven Coal (ASX:WHC) share price slumps despite positive profit outlook appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today
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• Why Clinuvel, EML, Regal, & Whitehaven Coal shares are sinking

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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Commonwealth Bank of Australia (ASX: CBA) shares are edging lower in morning trade, down 0.2%.

This comes as the S&P/ASX 200 Index (ASX: XJO) shakes off its losing streak, currently up 0.6%.

That’s this morning’s price action.

Now let’s have a look at the latest on the bank’s climate stance.

How is CommBank addressing climate issues?

Corporations across the world are coming under pressure to meet global emissions targets. As are the banks that finance them.

Speaking to CBA shareholders at the bank’s annual general meeting (AGM), chairman, Catherine Livingstone said:

We recognise that commercial, environmental and social outcomes are interconnected, and that balancing the interests of stakeholders involves achieving positive outcomes in all dimensions. During the past year, we have strengthened our approach to sustainability, including updating our Environmental and Social Framework, which sets out, for our people, as well as our stakeholders, the standards we have set.

CommBank’s CEO, Matt Comyn also addressed the bank’s ESG commitments. He added, “We’re also working on initiatives, such as the first sustainability linked bond and loan because we believe that a sustainable future is a critical part of planning for the future economy.”

Activists demand end to fossil fuel lending

CommBank’s current sustainability commitments weren’t enough to please some CBA shareholders, with environmental activists Market Forces wanting the bank to cease funding fossil fuel projects.

However, as the Australian Financial Review reported, Livingstone said CBA needed to continue funding oil and gas companies that were “committed to the transition to a cleaner economy“.

She did say the bank would take new data from the International Energy Agency’s (IEA) Net Zero by 2050 report into account, which could potentially see it limit loans to high emitters.

Livingstone added, “Our philosophy overall is to support the transition, but to make it very science-based and data-based.” She said CBA would only fund fossil fuel projects to companies that “pass an ESG assessment and absolutely demonstrate they are consistent with the transition to Paris”.

As clients go through their transition, they will need support in terms of capital and lending, and we want to be part of ensuring they can get that funding to make that transition.

Our philosophy is really to work with our clients and support them through the transition. There is a great deal of transition that has to occur over the next ten years. So, quite apart from 2050, targets to 2030 are really crucial if we are to get to net zero emission in 2050.

How have CBA shares been performing?

Though slipping this morning, CBA shares have broadly outperformed the benchmark in 2021. Year-to-date, the CBA share price is up 23%, compared to a gain of 9% on the ASX 200.

Over the past month CommBank has shaken off the wider market retrace, with shares up just over 1%.

The post Own CBA (ASX:CBA) shares? Here’s the bank’s latest stance on climate pressures appeared first on The Motley Fool Australia.

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• Leading brokers name 3 ASX shares to sell today
• Own CBA (ASX:CBA) shares? Here are the highlights from the bank’s AGM
• Own CBA (ASX: CBA) shares? Here’s the latest on the bank’s AI technology
• CBA share price (ASX:CBA) gains amid remedial action plan update
• Xero (ASX: XRO) subsidiary inks new partnership with CBA

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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Brokers have been thinking where the Bank of Queensland Limited (ASX: BOQ) share price could go.

The regional bank just released its FY21 result, which showed a recovery from the impacts of COVID-19 in FY20.

BOQ’s FY21 result

BOQ announced in its FY21 report that its cash earnings after tax increased 83% to $412 million. Excluding ME Bank, cash net profit was up 73% to $389 million. Cash earnings per share (EPS) grew 51% to 74.7 cents.

Statutory net profit after tax (NPAT) increased 221% to $369 million. Again excluding ME Bank, statutory profit would have risen 206% to $352 million.

The loan impairment expense was a credit of $21 million in FY21, reflecting “sound credit” and a $71 million reduction in the collective provision from the improved economic outlook and improvements in data quality relating to collateral.

Turning to the net interest margin (NIM), it rose 4 basis points to 1.95% excluding ME Bank. Including ME Bank it went up 1 basis point to 1.92%.

BOQ’s capital strength slightly increased, with the common equity tier 1 (CET1) ratio rising 2 basis points to 9.80%. The bank said that it has the capital strength to support business growth and transformation. Management said that the asset quality remains “sound” with prudent collective provisioning levels.

The board decided to pay a final dividend of $0.22 per share, an increase of $0.05 from the first half of FY21. That brought the full year dividend to $0.39 per share, representing a dividend payout ratio of 61%.

Broker thoughts on the BOQ share price

A price target signifies where a broker thinks a share price will be in 12 months from now, not just the next couple of months.

Citi has a price target of $10.50 and Morgans has a price target of $10.80. Both of them rate the BOQ share price as a buy.

Citi thinks the FY22 outlook is encouraging.

On Morgans’ numbers, BOQ is valued at under 12x FY22’s estimated earnings with an expected grossed-up dividend yield for FY22 of 7.4%.

What is the outlook?

The bank said it was cautiously optimistic that Australia remains well placed for economic recovery.

It’s focused on achieving sustainable profitable growth. It FY22 it said it’s expecting at least 2% ‘jaws’, driven by above system growth in its BOQ and Virgin Money Australia brands, and by returning ME Bank to around system growth by the end of the year.

BOQ did say it’s expecting the net interest margin to decline by around 5 basis points to 7 basis points in FY22, as competition continues and the low interest rate environment remains. It’s also expecting expenses to grow by 3% on an underlying basis to support business growth, which will be offset by accelerated integration synergies.

Its acquisition of ME Bank and the ongoing focus on its digital bank offering could be sizeable impacts on the BOQ share price in the coming years.

Management said that the integration of ME Bank is well progressed and it continues to make progress with its transformation roadmap. Over the next 12 months, the second phase of the Virgin Money digital bank will be available to customers and will include home loans and additional deposit products. Work is also well progressed on the first phase of the BOQ digital bank.

The post Can the BOQ (ASX:BOQ) share price hit $11 by the end of 2021? appeared first on The Motley Fool Australia.

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• Which ASX 300 shares are leading the way mid-week?
• Why Bank of Queensland, Fortescue, Liontown, & Pact shares are dropping
• ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump
• Bank of Queensland (ASX:BOQ) share price tumbles 4% on FY 2021 results
• Bank of Queensland (ASX:BOQ) share price on watch after 83% cash profit jump

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 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 Santos Ltd (ASX: STO) share price has tun out of steam on Thursday.

At the time of writing, the energy producer’s shares are down 2% to $7.32.

Despite this, Santos shares are still up an impressive 13% since this time last month.

Can the Santos share price keep rising?

The good news for investors is that one leading broker believes the Santos share price could run a lot higher.

According to a recent note out of Morgans, its analysts have an add rating and $8.55 price target on the energy producer’s shares.

Based on the current Santos share price, this implies potential upside of 17% over the next 12 months.

In addition to this, the broker is forecasting a fully franked 13.3 cents per share dividend in FY 2022. If we add this into the equation, this brings the potential return to a total of almost 19% for investors.

Why is the broker positive on Santos?

There are a few reasons why Morgans is bullish on the Santos share price.

These includes its growth profile and diversified earnings base. The broker also sees some very big positives from its proposed merger with fellow energy producer Oil Search Ltd (ASX: OSH).

Morgans explained: “We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a continuing broader sector recovery. STO remains our top preference amongst our large-cap energy universe.”

“With early indications supportive of our view that material synergies and enhanced growth plans will result from the OSH merger. While in good shape, we expect STO to continue gaining investor support as it executes on the opportunistic OSH merger,” it added.

The post Top broker tips Santos (ASX:STO) share price to climb 17% 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 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. The benchmark index is currently up 0.85% to 7,333.3 points.

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

HUB24 and Netwealth impress

It has been a very good day for the shares of HUB24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL) on Thursday. The shares of both investment platform providers have stormed higher following the release of strong first quarter updates. HUB24 reported net inflows of $3 billion for the three months ended 30 September, whereas Netwealth recorded $4 billion of net inflows for the quarter. Both were first quarter records.

A2 Milk shares surge again

The A2 Milk Company Ltd (ASX: A2M) share price is surging higher again on Thursday. Investors have been scrambling to buy the struggling infant formula company’s shares since the release of a first quarter update from smaller rival Bubs Australia Ltd (ASX: BUB). That update appears to indicate that the worst may be behind the infant formula market, which may have led to short sellers quickly closing positions.

South32 shares rise on acquisition news

The South32 Ltd (ASX: S32) share price jumped to a multi-year high this morning after announcing a new acquisition. South32 has entered into binding conditional agreements with Sumitomo Metal Mining and Sumitomo Corporation to acquire a 45% interest in the Sierra Gorda copper mine in Chile for an upfront cash consideration of US$1.55 billion. Sierra Gorda is an operating mine in the prolific Antofagasta copper mining region in Chile. Management expects the transaction to be immediately earnings accretive.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Netwealth share price with a 14% gain. This follows its record first quarter performance. The worst performer on the ASX 200 has been the NRW Holdings Limited (ASX: NWH) share price with a 2.5% decline on no news.

The post ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again appeared first on The Motley Fool Australia.

More reading

• Why the South32 (ASX:S32) share price is jumping 11% to a multi-year high
• Why did the A2 Milk (ASX:A2M) share price have such a great FY22 first quarter?
• Bubs (ASX:BUB) share price jumps a further 13% on broker upgrade
• Netwealth (ASX:NWL) share price jumps 10% following record quarter
• HUB24 (ASX:HUB) share price on watch after record Q1 performance

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 Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended A2 Milk, BUBS AUST FPO, and Hub24 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 South32 Ltd (ASX: S32) share price has been a strong performer on Thursday.

At one stage, the mining giant’s shares were up as much as 11% to a multi-year high of $4.07.

The South32 share price has pulled back since then but remains up 4% to $3.80 at the time of writing. 

Why is the South32 share price charging higher?

Investors have been bidding the South32 share price higher today after it announced a new acquisition.

According to the release, South32 has entered into binding conditional agreements with Sumitomo Metal Mining and Sumitomo Corporation to acquire a 45% interest in the Sierra Gorda copper mine in Chile.

The release advises that the parties have agreed an upfront cash consideration of US$1.55 billion for the stake. In addition, South32 has agreed to provide the sellers with a contingent price-linked consideration of up to US$500 million. This is payable at threshold copper production rates and prices in the years 2022-25.

What is Sierra Gorda?

Sierra Gorda is an operating mine in the prolific Antofagasta copper mining region in Chiles. It is expected to produce 180kt of copper, 5kt of molybdenum, 54koz of gold, and 1.6Moz of silver in 2021 on a 100% basis.

Today’s acquisition provides South32 with joint control alongside 55% joint venture partner KGHM Polska Miedz. It is a global miner listed in Poland.

Management notes that the transaction is expected to be immediately earnings accretive, with the upfront purchase consideration benchmarking favourably to historical investment, production and valuation multiples of 3.3x FY 2021 Underlying EBITDA.

The deal will be funded via a combination of cash on hand and an underwritten US$1 billion acquisition debt facility. This will maintain the company’s balance sheet strength and flexibility.

At the end of September, South32’s unaudited net cash balance stood at US$660 million.

Management commentary

South32’s Chief Executive Officer, Graham Kerr, commented: “We are actively reshaping our portfolio for a low carbon world and the acquisition of an interest in Sierra Gorda will increase our exposure to the commodities important to that transition.”

“Copper is a critical metal in the decarbonisation of the world’s energy networks and has strong long-term market fundamentals. Adding Sierra Gorda further improves our portfolio and is expected to immediately lift Group margins and earnings, supporting future shareholder returns while retaining strength and flexibility in our Balance Sheet,” he added.

The post Why the South32 (ASX:S32) share price is jumping 11% to a multi-year high appeared first on The Motley Fool Australia.

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• Why the South32 (ASX:S32) share price reached a 2-year high today
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• 5 things to watch on the ASX 200 on Thursday
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Brokers name 3 ASX shares to buy 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. 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 Swoop Holdings Ltd (ASX: SWP) share price isn’t going anywhere on Thursday. This comes after the telecommunications company placed its shares in a trading halt before market open.

At the time of writing, Swoop shares are frozen at $2.09 apiece.

Why is Swoop in a trading halt?

The Swoop share price was placed in a trading halt this morning pending results in regards to a capital raise.

While no details have been given by the internet provider, several media outlets have indicated what’s happening behind the curtain.

According to the Australian Financial Review, Swoop is raising $40 million in an underwritten capital raise. It is believed fund managers received presentations by the company, detailing its intentions to support a number of acquisitions.

Should these deals be completed, it is estimated up to $15 million in additional earnings before interest, tax, depreciation and amortisation (EBITDA) would be added to Swoop.

The capital raise is likely to be offered at a discount of around 10% on the last closing price.

It’s worth noting the company has the backing of Fortescue Metals Group Limited (ASX: FMG) boss Andrew ‘Twiggy’ Forrest.

In addition, Airtasker Ltd (ASX: ART) chair James Spenceley also sits as an independent non-executive chair for Swoop.

Australia’s largest wealth management firm, Morgans is said to be the broker and underwriter of the capital raise.

Swoop advised its shares will remain in a trading halt until the release of the announcement or by 18 October, whichever comes first.

About the Swoop share price

Since the company’s listing in May 2021, the Swoop share price has accelerated by around 400% from its initial public offering price of 50 cents. Its shares reached a high of $2.46 in September before slightly pulling back.

Swoop has a market capitalisation of roughly $238.73 million, with approximately 171.18 million shares on its books.

The post Why is the Swoop (ASX:SWP) share price frozen today? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Swoop (ASX:SWP) share price is up 11% on Wednesday

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 recommended Airtasker Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Limited (ASX: QAN) share price is slightly higher this morning, up 0.54% and changing hands at $5.58 in early trade.

Zooming out, Qantas shares have rallied 2.76% in the past month as the broader travel industry gets ready for the impending restart of domestic and international travel penned in for later this year.

What’s been fuelling the Qantas share price lately?

Qantas shares popped back in August after the company revealed it is planning to restart international flights from December.

Around that time, some destinations including Singapore, the US, UK, Japan and Canada will be reachable by air for the first time since COVID-19 forced the closure of the Australian international border.

The airline carrier is wagering that Australia will reach its 80% double-vaccination target set by the National Cabinet earlier this year.

According to the Department of Health, 64.4% of all eligible people have now been immunised against the SARS-CoV-2 virus.

Investors appear bullish on Qantas shares in a “reopening play” that is gaining steam as vaccination numbers creep up.

As this momentum builds, one leading broker has weighed in and presented their outlook for the Qantas share price.

Can Qantas continue its recovery?

Investment banking giant Citibank certainly believes so and likes the timing of the company’s capital expenditure cycle and the restarting of long-haul international flight routes.

The broker reckons that Qantas’ capital expenditure cycle will eventually peak in FY24, judging by the timing of incoming plane deliveries and the airline’s intention to start non-stop flights to the US in 2022.

Curiously, Citi also believes that Qantas may benefit from more favourable pricing from aircraft manufacturers Boeing (NYSE: BE) who are on the quest to regain both market share and credibility after a few horror years.

City says Boeing may tighten its pricing to become more competitive, thereby helping Qantas’ operating profit margins.

Not only that, the bank likes Qantas’ financial health, and reckons it will only need to make periodic payments to service liabilities on its incoming aircraft, hence avoiding the need to raise more capital and dilute investors’ shareholdings.

Given this view, Citi is bullish on Qantas shares and maintains its buy rating and a $5.93 price target. This implies an upside potential of 7.4% on the current share price.

Fellow broker JP Morgan is also bullish on Qantas shares and recently increased its price target by 10 cents to $5.80.

The Qantas share price has managed to claw back some of its 2020 losses and is 13.75% in the green since January 1.

The Qantas share price is up 32.6% over the past 12 months.

The post Why this top broker is bullish on the Qantas (ASX:QAN) share price appeared first on The Motley Fool Australia.

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• NSW cash splash, business confidence up, Qantas (ASX:QAN) down on Bonza news. Scott Phillips on Nine’s Late News
• Qantas (ASX:QAN) share price lifts despite Clive Palmer sell-off
• Qantas (ASX:QAN) share price falls amid new budget airline competition
• Will the Qantas (ASX:QAN) share price follow Ryanair’s surge on reopening?
• Top brokers name 3 ASX shares to buy next week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 Douugh Ltd (ASX: DOU) share price is on the rise this morning after the company announced a partnership to launch an integrated crypto offering.

At the time of writing, the Douugh share price is up 16.4% to 7.8 cents.

Douugh app to feature crypto wallet and trading features

Douugh has partnered with leading crypto-as-a-service provider Zero Hash, in the United States to integrate a cryptocurrency wallet and trading capabilities into its core Douugh app.

The partnership will initially allow US customers to buy, hold and sell crypto directly through the Douugh app’s Crypto Jar feature.

The Crypto Jar offering will allow consumers to directly participate in digital asset investing, commission-free. As well as spend with the cryptocurrency of their choice through the Douugh Mastercard debit card.

The partnership with Zero Hash commences immediately, for an initial 3-year term.

The launch of Douugh’s crypto service is subject to approval from the company’s banking partner on the flow of funds.

Douugh said that it intends to launch the Crypto Jar offering and functionality in Q322.

About Zero Hash

Zero Hash is a digital asset settlement and custody platform that is registered in the United States with the Financial Crimes Enforcement Network.

The company can operate in 51 US jurisdictions as a money service business, money transmitter or virtual currency business.

Management commentary

Douugh founder and CEO Andy Taylor commented on the upcoming features, saying:

Cryptocurrency is now at the maturity point that it has become a favored investment for millennials and gen-z who are hungry for yield and access to liquidity. The key for us is facilitating this activity responsibly.

For the next generation of investors, cryptocurrency is becoming an essential component of one’s overall diversified investment portfolio, and we are excited to partner with one of the largest and most regulated exchanges in the digital asset space to provide our customers with the ability to grow their cryptocurrency savings over the long term.

Douugh share price has a long way to go

Despite Douugh’s exciting growth story, its share price is down 54% year-to-date.

This comes off the back of an explosive initial public offering last year, where it surged to all-time highs of almost 50 cents from a listing price of just 3 cents.

The Doough share price has a mountain to climb to breakeven for the year, let alone re-test its previous record highs.

The post Douugh (ASX:DOU) share price rockets 18% on crypto update appeared first on The Motley Fool Australia.

More reading

• Here’s why the Douugh (ASX:DOU) share price is rocketing 18% today

Motley Fool contributor Kerry Sun 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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