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The S&P/ASX 300 Index (ASX: XKO) is dragging lower on Wednesday, following the wrap up of the August earnings season.

During mid-afternoon trade, the ASX 300 is down 0.31% to 7,513 points.

Let’s take a look at which ASX companies are making headlines today.

Paladin Energy Ltd (ASX: PDN)

The Paladin share price is rocketing 12.75% to 57.5 cents, despite no market-sensitive news out of the company today.

The uranium producer released its full-year results to the market last Friday, highlighting progress on the Langer Heinrich Mine.

It seems investors are optimistic about Paladin after its shares have risen by more than 20% in the past week.

Dicker Data Ltd (ASX: DDR)

Another strong mover for the start of the week is the Dicker Data share price, up 5.74% to $13.44.

Again, with no news from the IT distributor today, its shares are rebounding from the steep declines recently recorded.

The company last reported that its chair and CEO, David Dicker, sold a portion of his shares in an on-market trade.

Dicker Data shares reached a record high of $16.60 on Thursday after reporting its FY21 interim results.

Novonix Ltd (ASX: NVX)

The Novonix share price is storming high with a 5.75% gain to $4.78.

The lithium company released its full-year results to the market last Thursday, highlighting revenue growth of $5.2 million, up 22.9%.

It seems investors are buoyant on Novonix after its shares rose 20% in the past week. In August alone, the company’s share price is more than 80% higher, and up almost 300% year to date.

It’s worth noting that Novonix shares are closing in on the all-time high of $4.96 reached on Monday.

And which ASX 300 companies are the biggest fallers?

Blackmores Ltd (ASX: BKL)

Heading south today is the Blackmores share price, down 6.61% to $93.20.

Despite the health supplements company not providing any new information to the ASX today, it appears investors are happy to take their profits. This follows the company’s massive share price gains since 24 August, up around 30%.

Blackmores shares hit a multi-year high of $99.80 just yesterday.

Mineral Resources Limited (ASX: MIN)

Also being weighed down by investors today is the Mineral Resources share price, down 3.82% to $52.81.

With the spot price of iron ore and lithium stable, for now, investors have been quick to take profits off the table.

The mining service company’s shares zoomed to a record high of $65.38 at the end of July. Ever since, its shares have been slowly treading lower.

The post Which shares on the ASX 300 are on the move today? appeared first on The Motley Fool Australia.

More reading

• Why BlueBet, Dicker Data, Immutep, & Sandfire are charging higher
• Why the Dicker Data (ASX:DDR) share price is powering 6% today
• ASX 200 midday update: Metcash update, Wesfarmers goes ex-div
• Guess which sector August’s top performing ASX shares all came from
• The Blackmores (ASX:BKL) share price surged 35% in August to a 52-week high. Here’s why.

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. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Dicker Data 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 Woodside Petroleum Limited (ASX: WPL) share price is among the leaders of the ASX 200 energy sector today.

It’s bringing up the lead out of the 3 majors, with the Woodside share price having gained 1.33% to trade at $19.75.

Meanwhile, the Santos Ltd (ASX: STO) share price is up 1.16% at $6.12 and Oil Search Ltd (ASX: OSH) shares have boosted 0.27% to reach $3.75.

However, some of the S&P/ASX 200 Index‘s (ASX: XJO) smaller energy companies are blowing Woodside Petroleum out of the water today.

Beach Energy Ltd (ASX: BPT), with its $2.3 billion market capitalisation, has seen its share price gain 3.52% to trade at $1.09. While the share prices of Whitehaven Coal Ltd (ASX: WHC) and Ampol Ltd (ASX: ALD) are also outdoing Woodside’s, with gains of 4.74% and 1.6% respectively.

In fact, the only ASX 200 energy share seeing red today is Viva Energy Group Ltd (ASX: VEA). Its share price has fallen 0.23% to trade at $2.13.

Let’s look at what’s turned the ASX 200 energy sector into a sea of green today.

What’s boosting the share price’s of Woodside and its peers?

It’s a good day to be an energy company on the ASX.

The share prices of Woodside and its ASX 200 energy peers are gaining alongside the price of oil.

At the time of writing, the Brent Oil price has increased 0.63% to trade at US$72.34 a barrel. The Crude Oil WTI price has also gained 0.69% and it currently sitting at US$68.97 per barrel.

That fortunate occurrence may well be what’s keeping the ASX 200 energy sector, and the Woodside share price, in good spirits today.

Meantime, the broader market is having a rough trot today. At the time of writing, the ASX 200 Index has slipped 0.27% with the All Ordinaries Index (ASX: XAO) also down 0.27%.

The post Woodside (ASX: WPL) share price leads ASX 200 energy sector giants on Wednesday appeared first on The Motley Fool Australia.

More reading

• Top broker picks best ASX 200 bank shares to buy coming out of reporting season
• Why the Rio Tinto (ASX:RIO) share price is down 17% in a month
• ASX 200 midday update: Metcash update, Wesfarmers goes ex-div
• How did the ASX 200 shares perform compared to the FTSE 100 shares in August?
• These were the best performing ASX 200 shares in August

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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The Sezzle Inc (ASX: SZL) share price has been a positive performer this week.

Over the last three trading sessions, the buy now pay later (BNPL) provider’s shares have risen 3.5%.

Why is the Sezzle share price rising this week?

There appear to have been a couple of catalysts for the rise in the Sezzle share price this week.

One is the release of its full year results on Monday. Although much of this result was pre-released earlier in the month, investors appear to have been pleased with some of management’s comments.

For example, in its report it reminded investors of its major deal with Discover Financial Services.

It said: “On July 14, 2021, Sezzle agreed to issue Discover Financial Services LLC $30,000,000 of the Company’s common stock at a price of $6.58 per share (A$8.83), which was completed on July 19, 2021. The Company and Discover are finalizing a definitive commercial agreement, in which the parties propose to enter into an expanded partnership, including plans for a buy now, pay later network solution on the Discover Global Network, as well as a dedicated referral program introducing Discover credit and debit products to the Company’s consumer base.”

This has the potential to give its customer numbers and underlying merchant sales a major boost once operational. Which could be good news for the Sezzle share price.

What else has been happening?

Also potentially giving the Sezzle share price a boost is an announcement out of the company yesterday.

According to the release, Sezzle is partnering with California Pet Pharmacy, an accredited online pet pharmacy dispensing pet medications to all 50 states.

The partnership will see Sezzle become the preferred BNPL option for California Pet Pharmacy. This will allow pet owners to create a healthy lifestyle for their pets without the financial burden that comes with purchasing expensive pet medications.

Sezzle’s Chief Revenue Officer, Veronica Katz, commented: “We are very pleased to launch our partnership with California Pet Pharmacy. As the Buy Now, Pay Later space heats up, the necessity for consumers to split payments in a safe and reliable way is growing across all industries.”

Management notes that debuting BNPL in pharmaceuticals and pet care is a natural next step for Sezzle as it focuses on bringing flexible payments to consumers across all verticals.

The Sezzle share price is up 5% in 2021.

The post Why the Sezzle (ASX:SZL) share price is lifting this week appeared first on The Motley Fool Australia.

More reading

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• Sezzle (ASX:SZL) eyes US market, share price jumps
• The Sezzle (ASX:SZL) share price has crashed 21% in a week
• Why Breville, CBA, Magellan, & Sezzle shares are tumbling lower today
• Why the Sezzle (ASX:SZL) share price is sinking 7% 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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Owners of Magellan Financial Group Ltd (ASX: MFG) shares might want to brace for new competition as reports of GQG Partners‘ plan to list on the ASX emerge.

Right now, the Magellan share price is $42.48, having gained 0.3% today.

Let’s take a closer look at GQG Partners’ rumoured debut and compare the 2 asset managers.

Holders of Magellan shares beware: GQG Partners reportedly plans its IPO

Holders of Magellan shares might want to keep an eye out for upcoming initial public offerings (IPOs) as GQG Partners is reportedly planning to debut on the ASX before the end of 2021.

According to the Australian Financial Review (AFR), GQG Partners plans to front up to Magellan with an IPO worth more than $5 billion.

GQG Partners is an asset manager with most of its operations in the United States. Though, it has an office in both London and Sydney.

The fund has more than $82 billion of assets under management and provides its services to more than 778 organisations.

The AFR claims GQG Partners manages assets for Australia’s AustralianSuper, Rest Super and Cbus.

GQG is said to believe that listing on the ASX will boost its brand recognition among Australian investors.

How Magellan compares

Magellan shares might be shaking in their boots on news of a comparable asset manager’s planned IPO.

According to the AFR, GQG Partners likely believes it’s a better investment than Magellan due to its growth profile.

The publication states the firm’s assets under management have grown by nearly 100% since this time last year.

For comparison, Magellan reported its funds under management increased 9% in FY21. As of 30 June 2021, the ASX-listed fund was charged with managing $103.7 billion worth of assets.

Additionally, Magellan’s profits dropped 33% over the financial year just been.

The market reacted to the drop as one would expect. Magellan’s shares fell 10% on the back of its FY21 earnings.

Thus, it’s likely a bad time for Magallan, and those who own its shares, to learn a competitor might soon be encroaching on its block.

The post Own Magellan (ASX:MFG) shares? A $5b competitor could be hitting the ASX appeared first on The Motley Fool Australia.

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• BHP to sell assets to Woodside, Domain surges and Magellan crashes. Scott Phillips on Nine’s Late News
• The ASX reporting wrap-up: Magellan, Breville, Domain
• ASX 200 drops, Magellan (ASX:MFG) and Breville (ASX:BRG) sink after FY21 results

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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Investors shouldn’t view ASX 200 bank shares as a homogenous group and last month’s reporting season can help you pick the next winners.

While the share prices of ASX banks have performed well against the S&P/ASX 200 Index (Index:^AXJO), JPMorgan believes this could be about to change.

The broker reviewed the sector following the August profit season and made changes to its recommendations.

ASX 200 banks reporting season trends

Mind you, not all of the ASX 200 bank shares posted full year results last month. In fact, only Commonwealth Bank of Australia (ASX: CBA) and Bendigo and Adelaide Bank Ltd (ASX: BEN) did.

The other ASX big banks issued updates instead. That was enough for JP Morgan to identify some key themes.

“Margin trends were mixed this quarter/half and we expect mortgage margin headwinds to re-emerge, supporting our preference for more business-exposed banks,” said the broker.

The ASX 200 bank upgraded to “buy”

This is one reason why JPMorgan upgraded its recommendation on the National Australia Bank Ltd. (ASX: NAB) share price to “overweight”.

At the same time, the broker cut its rating on the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price to “neutral” from “overweight”.

“We have become more concerned about ANZ’s struggles in the Australian mortgage market, and think the turnaround will be more protracted than we first thought,” said JPMorgan.

“When combined with the pushback of rate rises by the RBNZ due to the NZ COVID-19 outbreak, we struggle to see the near term catalysts to re-rate the stock despite valuation support.”

Why the NAB share price can outperform

In contrast, the broker reckons that NAB is well positioned to grow revenues. The bank has strong customer satisfaction scores with both consumers and businesses. NAB is also the leader among the ASX big banks for business lending.

This should mean more stable margins as the residential lending market is more competitive compared to small and medium business loans.

“AUSTRAC issues remain to be resolved, but we already incorporate AML investment in our forecasts with plenty of capital headroom to absorb any one-off hit,” added JPMorgan.

“Prolonged lockdowns may impact SME asset quality but provisions look solid.”

Best ASX 200 bank shares to buy now

However, NAB is not the broker’s top pick for the sector. The ASX bank that represents the best buy is the Macquarie Group Ltd (ASX: MQG) share price, according to JPMorgan.

This is followed by the NAB share price then the Bank of Queensland Limited (ASX: BOQ) share price.

The post Top broker picks best ASX 200 bank shares to buy coming out of reporting season appeared first on The Motley Fool Australia.

More reading

• Why the Rio Tinto (ASX:RIO) share price is down 17% in a month
• ASX 200 midday update: Metcash update, Wesfarmers goes ex-div
• How did the ASX 200 shares perform compared to the FTSE 100 shares in August?
• These were the best performing ASX 200 shares in August
• These were the worst performing ASX 200 shares in August

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, Macquarie Group Limited, and 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 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is off its intraday lows but still trading lower. At the time of writing, the benchmark index is down 0.3% to 7,513.5 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

BlueBet Holdings Ltd (ASX: BBT)

The BlueBet share price is up 4% to $2.61. Today’s gain appears to have been driven by a broker note out of Morgans this morning. In response to the sports betting company’s full year results, the broker has retained its add rating and lifted its price target to $2.80. It was pleased with BlueBet’s performance in FY 2021 and expects further strong growth in FY 2022.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price has rebounded 7% to $13.57. Investors had been selling this IT distributor’s shares in recent trading sessions following the sale of shares by its CEO, David Dicker. However, Mr Dicker appears to have eased any concerns brought about by the sale. He said: “This sale seems to have provoked a loss of confidence in DDR which is entirely unwarranted. It seems that people have read things into this sale that are just not there. This sale does not mean, in any way, that I am reducing my role or involvement with Dicker Data.”

Immutep Ltd (ASX: IMM)

The Immutep share price is up 7.5% to 57 cents. This follows news that the biotechnology company has completed the recruitment for Stage 2 of Part B of its Phase II TACTI-002 study. This trial is evaluating the combination of Immutep’s Efti with Merck’s Keytruda product in patients with second line head and neck squamous cell carcinoma or non-small cell lung cancer.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is up 3% to $6.70. This appears to have been driven partly by a positive broker note out of Morgans this morning. According to the note, the broker has upgraded the copper miner’s shares to an add rating with a $7.61 price target. Morgans notes that Sandfire’s full year result was stronger than it expected. It also feels positive on the future due to favourable copper prices.

The post Why BlueBet, Dicker Data, Immutep, & Sandfire are charging higher appeared first on The Motley Fool Australia.

More reading

• Why the Dicker Data (ASX:DDR) share price is powering 6% today
• Why the Immutep (ASX:IMM) share price is leaping 5% today
• BlueBet (ASX:BBT) share price jumps on EBITDA boost
• Sandfire Resources (ASX:SFR) share price advances on record $170m net profit
• Why Altium, BlueBet, Healius, & HUB24 shares are tumbling lower

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 Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended BlueBet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Magellan Financial Group Ltd (ASX: MFG) is well known for providing a slate of investment options for its Australian customer base. You don’t become one of the largest fund managers in the country without a comprehensive suite of investment options, after all.

But something strange has happened to one of Magellan’s flagship funds today. That would be regarding the Magellan High Conviction Trust (ASX: MHHT). As the name implies, this fund holds only Magellan’s “highest-conviction ideas”, with a “concentrated portfolio invested in 8 to 12 of the world’s best global stocks”. In contrast, the popular Magellan Global Fund (ASX: MGF) has a portfolio of “20 to 40 of the world’s best global stocks”.

In exchange for the higher management fee of 1.5% (compared to the 1.35% for the Global Fund), the concentrated High Conviction Trust has no benchmark. It instead focuses on “risk-adjusted returns”. It also has unlimited hedging capacity, as well as no limit on its minimum or maximum cash position.

Papa’s got a brand new… ticker code

But investors in Magellan’s High Conviction Trust may have noticed something strange this morning. They have woken up with a different investment from what they had when they went to sleep. That’s because, as of today, the Magellan High Conviction Trust has changed from a closed-ended Listed Investment Trust (LIT) to an open-ended actively managed exchange-traded fund (ETF). To reflect this change, this fund now has the new ticker code of ‘MHHT’, as opposed to the old ‘MHH’.

This move shouldn’t have been unexpected though. Magellan first flagged it back in early July, and gave the final green light on 26 August after receiving approval from the ASX.

So why is Magellan changing one of its popular funds? Well, Magellan’s CEO Brett Cairns told us why back in July:

On balance, we believe the benefits for unitholders of reducing the trading discount in MHH outweighs the benefits of MHH remaining as a closed-ended fund. We believe transitioning the fund to an open-ended Active ETF is in the best interests of investors as it will allow direct access to the fund for applications and redemptions and see the units in the fund trade at a tight spread to net asset value going forward.

Why has the Magellan High Conviction Trsut changed its structure?

This makes sense for investors. As a closed-ended structure, the old High Conviction Trust had the potential to trade for less than the fund’s actual worth. This it did, and habitually. The gap between this fund’s net tangible assets (NTA) and share price became so apparent that units of the fund were acquired by Geoff Wilson’s new Listed Investment Company (LIC) WAM Strategic Value Ltd (ASX: WAR). As we covered at the time of this purchase, WAM Strategic Value’s whole purpose is to find undervalued assets in similar scenarios.

However, the new open-ended structure will allow the Magellan High Conviction Trust to consistently trade in line with the NTA of the underlying fund, as Mr Cairns pointed out above.

This shift in strategy seems to be working too. Magellan’s High Conviction Trust last traded under its old ticker and structure on 26 August. Back then, the unit price for MHH shares closed at $1.775 a unit. Today, upon the new MHHT debut, this now-ETF is asking a unit price of $1.825 at the time of writing. That’s pretty much in line with its current NTA per unit.

The post Why did Magellan High Conviction Trust (ASX:MHH) just morph into an active ETF? appeared first on The Motley Fool Australia.

More reading

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• Brokers give their verdict on the Altium (ASX:ALU) share price
• Regional Express (ASX:REX) extends suspension of services and stand downs
• SILK Laser (ASX:SLA) share price lifts 4% on acquisition update
• 3 ASX 200 shares hit new all-time highs this earnings season

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

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It has been a volatile day for the Altium Limited (ASX: ALU) share price on Wednesday.

The electronic design software company’s shares have been up as much as 1% to $30.19 and down as much as 2.5% to $29.20.

At the time of writing, the Altium share price is down 0.5% to $29.73.

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

The bulls and bears have been battling it out today after Altium was the subject of two broker notes with opposing opinions.

In one corner you have Citi, which believes the recent weakness in the Altium share price is a buying opportunity, and then in the other corner you have Macquarie, which is tipping its shares to fall further.

The bulls

According to a note out of Citi, its analysts have upgraded its shares to a buy rating with a price target of $35.40.

Based on the current Altium share price, this implies potential upside of 19% over the next 12 months.

Citi believes that Altium’s underlying business remains attractive and feels the pullback since its full year results release is an opportunity for investors. The broker also notes that the company’s guidance for FY 2022 was solid.

The bears

Over at Macquarie, its analysts feel very differently about the Altium share price.

In response to its full year results, the broker has downgraded the company’s shares to an underperform rating with a $27.60 price target. This implies potential downside of 7.2% over the next 12 months.

Macquarie was disappointed that Altium fell short of its guidance in FY 2021 just two months after reiterating it. The broker feels this may hit investor confidence, particularly in its ability to achieve its long term goals.

Altium is aiming to more than double its revenue to US$500 million by FY 2026, one year later than previously planned due to COVID-19 impacts.

Time will tell which broker has made the right call.

The post Brokers give their verdict on the Altium (ASX:ALU) share price appeared first on The Motley Fool Australia.

More reading

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• ASX 200 rises, Altium sinks, Fortescue climbs
• Why Altium, BlueBet, Healius, & HUB24 shares are tumbling lower
• Which ASX companies are starting off the week as the top movers in the ASX 300 today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium. The Motley Fool Australia owns shares of and has recommended Altium. 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 Regional Express Holdings Ltd (ASX: REX) share price has slipped into the red on Wednesday.

Shares in the domestic airline are on the way down after the company made an announcement concerning its operations.

What did ‘REX’ announce?

In a move that could weigh in on the company’s share price, its board was “left with no option but to extend the suspension of (its) domestic services and reduce regional services up until 10 October 2021″.

Regional Express had originally thought it would stand down until at least 12 September. However, given further extensions to lockdowns in Greater Sydney, the decision was made to continue the shutdowns and extend the furloughs until early October.

Regional’s operations are impacted by lockdowns that affect domestic travel. And remember, NSW has announced a further extension of lockdowns for Greater Sydney until the end of September 2021 and for Regional NSW until at least 10 September.

Therefore Regional Express is unable to operate, due to these restrictions on travel. It is a tricky situation that is no doubt made more complex by the nature of the COVID-19 delta variant, which has seen case numbers spike in NSW and Victoria over the last few months.

How does this impact the Regional Express share price?

Regional’s shares had originally made a swift recovery from the market selloff back in March 2020. By January of this year, they were at 5 year highs of $2.07 a share.

However, since then, amid the COVID situation in Australia and abroad, it’s been a steep slide down and Regional Express now trades at $1.19 each.

As such it’s been a difficult year to date for Regional’s shares, posting a loss of 42% since January 1.

Despite this, the Regional Express share price is still 10% in the green over the last 12 months.

What’s next for Regional Express?

A positive for the Regional Express share price is that the company’s FY21 results were well received by the market on reporting yesterday.

In it, the company recognised a 41% decrease in passenger revenue, however, the underlying loss before tax came in at $18.4 million, which is an approximate $9 million improvement on FY20.

The company is also uncertain about the future of its operations and the aviation industry as a whole, and thus did not provide any specific earnings guidance for FY22.

The post Regional Express (ASX:REX) extends suspension of services and stand downs appeared first on The Motley Fool Australia.

More reading

• Regional Express (ASX:REX) share price up on 33% net loss after tax improvement
• Flight Centre (ASX:FLT) share price slips despite Rex (ASX:REX) agreement
• Why the Regional Express (ASX:REX) share price is down
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The SILK Laser Australia Ltd (ASX: SLA) share price is firmly in positive territory during Wednesday trade. This comes after the laser clinic company announced an update on its recent strategic acquisitions.

At the time of writing, SILK Laser shares are swapping hands for $3.97 apiece, up 3.52%, after earlier hitting an intraday high of $4.00.

What did SILK Laser announce?

According to its update, SILK Laser advised it has completed the acquisition of Australian Skin Clinics and The Cosmetic Clinic in New Zealand.

The agreement to acquire 100% of the ASC group involved an upfront cash consideration payment of $47 million. Furthermore, SILK Laser will pay up to another $5 million in ordinary shares based on the opening of certain new clinics.

SILK Laser noted that the acquisition will see 55 clinics added to its existing network of 63 clinics. This consists of 14 Victorian clinics and 14 New Zealand clinics which see the company enter into new geographical markets.

Both New South Wales and Queensland will effectively double their presence following the takeover with 23 clinics and 29 clinics, respectively.

SILK Laser plans to have a network of 150 clinics under its belt over the medium term.

SILK Laser CEO and co-founder Martin Perelman commented:

We’re delighted to welcome the ASC and TCC teams to SILK, and excited by the growth potential we see for our combined businesses.

With growing revenues, healthy margins, profitable operations and growing cashflows, SILK is in a unique position to support our growing loyal customer base, build exciting careers for our franchise owners, nurses and other team members, and deliver sustainable growth in shareholder value.

About the SILK Laser share price

Over the last 12 months, SILK Laser shares have posted a modest 12% gain for investors. The company’s share price reached an all-time high of $5.30 in March before pulling back in the months following.

Based on today’s price, SILK Laser presides a market capitalisation of roughly $206 million, with almost 52 million shares outstanding.

The post SILK Laser (ASX:SLA) share price lifts 4% on acquisition update appeared first on The Motley Fool Australia.

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• 2 small-cap ASX shares pushing through lockdown pain
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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 recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended SILK Laser Australia 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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