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The IDT Australia Limited (ASX: IDT) share price has soared into the green during early trade on Monday.

IDT shares are on the move as the pharmaceuticals company gave a key update.

Let’s investigate further.

What did IDT announce?

IDT provided some additional colour on a previous announcement made on 22 July regarding the company “potentially providing cGMP manufacturing services” for an mRNA vaccine candidate.

Recall that IDT had previously stated it could manufacture up to 100 million doses of an mRNA vaccine within 18 months.

On Monday, IDT confirmed that these discussions “recently extended” to include the Commonwealth and Victorian Governments, alongside Monash University. IDT stated the discussions “are progressing well”.

Moreover, IDT advised that its sterile readiness agreement with the Department of Health to bring “IDT’s sterile manufacturing facility into a state of readiness to produce a Covid-19 vaccine” was finalised.

This agreement “provides for an exclusivity period” with the Australian government under one of two outcomes (as per the release):

• Executing a supply agreement for IDT to provide Covid-19 vaccine services to the department of heath, OR
• Four months from competion of IDT’s sterile readiness works.

In other words, IDT’s efforts to ready the facility is on a “vaccine agnositc basis”, meaning the company will have the site prepared, and only if and when the government calls upon them to produce a Covid-19 vaccine will IDT do so.

In addition, an important note for consideration is that the decision to manufacture the vaccine is at the Government’s discretion.

As a result, investors are buying IDT shares in droves after the news, pushing the IDT Australia share price higher.

IDT shares are now exchanging hands at 70 cents apiece, a 27% surge into the money from the open.

IDT Australia share price snapshot

The IDT share price has posted a year to date return of 278%, extending the previous 12 month’s gain of 312%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s climb of around 25% over the past year.

The post IDT Australia (ASX: IDT) share price surges 16% on vaccine government talks appeared first on The Motley Fool Australia.

More reading

• Why the IDT (ASX:IDT) share price is rocketing 25% on Wednesday

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

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

Dogecoin (CRYPTO: DOGE) investors have been on a wild ride this year. Between January and May, its price skyrocketed over 15,000% to a little over $0.74, only to lose more than half of its value just weeks later. But as of this writing, Dogecoin is still up about 6,700% year to date, and the price has been climbing consistently over the past month.

Investors may see this as an opportunity — perhaps the Shiba Inu is finally back on track to reach the moon! But before you make any decisions, it’s important to consider the risks and weigh all of your options. For instance, there are ways to get Dogecoin exposure in your portfolio without actually buying any cryptocurrency. Let’s dive in.

The downside of Dogecoin

Dogecoin started as a joke, but it has garnered a substantial following on social platforms like Reddit and TikTok. In fact, earlier this year, Dogecoin surpassed Bitcoin to become the most mentioned cryptocurrency on Twitter. And of course, Elon Musk added fuel to that fire with a series of amusing tweets mentioning Dogecoin.

But here’s the problem: Dogecoin’s value is based solely on its popularity, and popularity is fickle. The tide can quite literally turn overnight, and that’s exactly what happened in May. More to the point, despite a huge social following, Dogecoin is still worth a fraction of Bitcoin’s total market value, and it doesn’t offer the programmability of other blockchains like Ethereum. In short, nothing significant differentiates Dogecoin from the thousands of other cryptocurrencies that now exist.

There’s also another problem: Dogecoin is difficult to value. Investors use metrics like revenue, earnings, and discounted cash flows to value stocks. But Dogecoin isn’t a cash-generating business, nor is it an interest-generating asset like a bond. For that reason, speculating on Dogecoin’s future price is more akin to gambling.

Of course, that doesn’t mean its price is going to plummet. Someone always wins the lottery, and a year from now, Dogecoin could be worth 10 times what it is today. Or it could be worth less than $0.01, just like it was nine months ago. Regardless, it’s a very risky investment.

The benefits of Coinbase

Coinbase (NASDAQ: COIN) helps its clients participate in the cryptoeconomy, the burgeoning ecosystem that includes assets like Bitcoin and Dogecoin, as well as non-fungible tokens (NFTs), smart contracts, and decentralized financial (DeFi) applications.

The company serves 68 million users, including retail investors, institutions, and ecosystem partners. Its platform offers a range of products such as analytics software, developer tools, and mobile wallet services. However, Coinbase is primarily a brokerage, and 85% of its revenue came from transaction fees during the most recent quarter.

Put another way, Coinbase thrives when the crypto market is volatile: Higher trading volume means more transaction fees, and that means more revenue for the company. So, if you’re interested in Dogecoin — or any other cryptocurrency — Coinbase can help you capitalize on that volatility, whether the price is moving up or down.

For instance, consider the company’s financial performance through the first half of 2021. As Dogecoin and the broader crypto market soared in the first quarter, then crashed in the second, Coinbase posted incredible growth on both the top and bottom lines.

Metric	H1 2020	H1 2021	Change
Revenue	$377 million	$4.03 billion	969%
Earnings per share	$0.15	$9.60	6,300%

Source: Coinbase SEC Filings. Note: earnings per share is based on diluted share count.

More importantly, Coinbase has differentiated itself from other brokerages through significant investments in cybersecurity and regulatory compliance. In fact, it secures clients’ funds with the largest hot wallet crime program in the insurance market. And the company currently holds $180 billion in assets on its platform, or 11.2% of all existing crypto assets, making it a trusted brand name. As a result, some Wall Street analysts see significant upside for shareholders.

Here’s the bottom line: Coinbase is by no means a risk-free investment. Since its initial public offering in April, the stock has plunged over 30% from its opening price. But I do think it’s less risky than buying Dogecoin outright, simply because Coinbase is a cash-generating business that doesn’t depend on the success of any single cryptocurrency.

That’s why this stock looks like a smart way to get Dogecoin exposure in your portfolio without actually buying any Dogecoin.

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

The post 1 smart way to invest in Dogecoin without buying cryptocurrency appeared first on The Motley Fool Australia.

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• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• Why Ethereum is the top cryptocurrency investment of 2021
• Cardano reaches new milestone as market cap narrows with Bitcoin
• Crypto assets surpass US$2 trillion on Bitcoin rally… now what?
• ASX 200 Weekly Wrap: New records just keep coming for the ASX 200

Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Ethereum, and Twitter. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Sonic Healthcare Limited (ASX: SHL) share price is under pressure on Monday after the company released its FY21 results.

At the time of writing, shares in the medical diagnostics company are down 3.22% to $41.45.

What happened to the Sonic Healthcare share price?

Sonic Healthcare delivered a seemingly positive FY21 result with highlights including:

• Revenue of $8.8 billion, up 28% on the prior corresponding period (pcp).
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) lifting to $2.6 billion, up 81%.
• Net profit surging to $1.3 billion, up 149%.

Its shares opened relatively flat, down 0.19% to $42.75, before sellers took control, dragging the Sonic Healthcare share price down 4.41% to an intraday low of $40.94.

Did the results contain any negative surprises?

Sonic Healthcare said that its financial performance has been enhanced by COVID-19 testing revenue across its ~60 laboratories around the world.

The business flagged that COVID-19 PCR volumes were lower in the second half of the year versus the first half.

In the new financial year, it cited that volumes have been increasing with the spread of the Delta variant.

Looking ahead, the company said that it is not providing any earnings guidance for FY22 due to “COVID-19 related unpredictability”.

Encouragingly, the company’s base business (excluding COVID testing) grew by 6% versus FY20 and by 4% compared to FY19.

Sonic Healthcare highlighted that its base business “has become increasingly resilient to impacts of pandemic waves and benefits from geographical and business diversification”.

That said, the volatility in COVID-19 testing revenues could be the catalyst behind today’s selloff.

Another thing to consider is that the Sonic Healthcare share price closed at record all-time highs last Friday, 20 August.

Investors might be using today’s news as an opportunity to take profits, despite what looks like an encouraging full-year result.

The post Sonic Healthcare (ASX:SHL) share price down 3% despite surging FY21 profits appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: NIB sinks and Sonic falls on full year results
• Sonic Healthcare (ASX:SHL) share price on watch after 149% profit boost in FY21
• 5 things to watch on the ASX 200 on Monday
• How did the Sonic Healthcare (ASX:SHL) share price respond last earnings season?
• 2 high quality ASX dividend shares named as buys

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 recommended Sonic Healthcare 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 Noxopharm Ltd (ASX: NOX) share price has been a strong performer on Monday.

The clinical-stage drug development company’s shares were up as much as 13% to 63 cents at one stage today.

The Noxopharm share price has since pulled back and is now trading just 3.5% higher at 57.5 cents.

Why is the Noxopharm share price rocketing higher?

The Noxopharm share price was given a big boost this morning from the release of a positive announcement.

That announcement reveals that the company is positioning its Veyonda (idronoxil) product as a COVID-19 treatment. This is based on a well-tolerated and selective anti-inflammatory action.

According to the release, this follows an important discovery about the anti-inflammatory mechanism of action of idronoxil through its partnership with Hudson Institute of Medical Research.

The release reveals that the discovery is the identification of the enzyme, TANK-binding kinase 1 (TBK1), as the molecular target of idronoxil in terms of its anti-inflammatory properties.

However, it is worth noting that the discovery is not yet peer reviewed in a scientific publication. A submission is anticipated in two months.

Management commentary

The Hudson Institute’s Associate Professor and Head of the Nucleic Acids and Innate Immunity Laboratory, Michael Gantier, said: “TBK1 is a point of convergence of many inflammatory pathways, and a target under significant investigation by several big pharmaceutical companies. Our latest findings, which are being prepared for publication, demonstrate that idronoxil may have applications in a range of diseases where TBK1 facilitates aberrant inflammation.”

“Critically, TBK1 also directly controls production of interferon-beta, a cytokine associated with long-COVID symptoms. This suggests that idronoxil may not only be useful to prevent progression of COVID-19 patients from mild to severe disease, but also may decrease the risk of long-lasting post-infectious symptoms, seen in up to half of COVID-19 patients,” he added.

The Noxopharm share price is up 22% since the start of the year.

The post Noxopharm (ASX:NOX) share price jumps 13% on COVID treatment update appeared first on The Motley Fool Australia.

More reading

• Sonic Healthcare (ASX:SHL) share price down 3% despite surging FY21 profits
• The Wesfarmers (ASX:WES) share price is up 28% in 2021. Here’s why
• ASX 200 midday update: NIB sinks and Sonic falls on full year results
• Why the MetalsTech (ASX:MTC) share price is soaring 15% today
• IGO (ASX:IGO) share price climbs on lithium production update

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 Wesfarmers Ltd (ASX: WES) share price is having a year to remember.

At the time of writing, shares in the retail and industrial conglomerate are trading for $65.65 – down 0.61%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.11% higher.

Since the beginning of the year, Wesfarmers shares are 30% higher. Compared to the ASX 200, which is up 11.7% year-to-date, it is outpacing the benchmark index.

Let’s take a closer look to see why.

What’s affected the Wesfarmers share price in 2021?

The biggest story of the year, for the Wesfarmers share price and the world at large, has been the COVID-19 pandemic.

In 2021, every state and territory in the country has been in (or, in the case of NSW, Victoria, and the ACT, is in) lockdown as the delta variant runs rampant.

Historically, consumer staple and retail shares have done well during lockdown. The theory is stay-at-home orders limit people’s options on what they can spend their money on.

Wesfarmers’ brands like Kmart, Officeworks, and Bunnings, are considered essential and can operate under stay-at-home orders – either through ‘click and collect’ services or in-store shopping.

What else?

Besides Covid, there are other factors that probably had a material impact on the Wesfarmers share price. Specifically, they relate to acquisitions and diversification.

On the acquisition front, in April, Wesfarmers’ subsidiary Bunnings announced the purchase of Beaumont Tiles for an undisclosed amount.

At the time, Bunnings Managing Director Mike Schneider said the purchase of Beaumont will allow the company to expand into further market segments.

Beaumont Tiles services both trade and consumer customers and has a specialised product and service capability that is not able to be offered through the Bunnings Warehouse format.

More recently, Wesfarmers launched its bid to buy 100% of shares in Australian Pharmaceutical Industries Ltd (ASX: API). API is the owner of retail pharmacy brand Priceline. The offer of $1.38 per share was rebuffed by API.

In a statement, the board said the Wesfarmers bid was opportunistic and undervalued the company. In August, reports emerged Wesfarmers renewed its interest in the company and was considering upping its offer. This saw the Wesfarmers share price rise.

Finally, Wesfarmers announced plans to further diversify the business in 2021. In July, the company declared it’s lithium mine in Western Australia was approved by the state government.

In August, it announced a partnership with Jemena for the transportation of green hydrogen. It seems Wesfarmers may see potential in the green energy sector.

Wesfarmers share price snapshot

Over the past 12 months, the Wesfarmers share price has increased 34.6%. It’s outperformed the ASX 200 by around 11 percentage points in that time.

Wesfarmers has a market capitalisation of $74.9 billion.

The post The Wesfarmers (ASX:WES) share price is up 28% in 2021. Here’s why appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Miners drag ASX back to earth
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Motley Fool contributor Marc Sidarous 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 Wesfarmers 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. The benchmark index is up 0.15% to 7,473.1 points.

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

Sonic Healthcare full year results fall short of lofty expectations

The Sonic Healthcare Limited (ASX: SHL) share price is tumbling lower following the release of its full year results. For the 12 months ended 30 June, Sonic Healthcare delivered a 28% increase in revenue to $8.8 billion and a 149% lift in net profit to $1.3 billion. This was driven largely by strong demand for COVID-19 testing services. As strong as this result was, it fell a touch short of the market’s expectations. Goldman Sachs was forecasting revenue of $9,352 million and net profit of $1,327 million.

NIB shares sink on full year results

The NIB Holdings Limited (ASX: NHF) share price is falling heavily today after its full year results fell short of expectations. NIB reported a 2.9% increase in revenue to $2.6 billion and an 84.5% lift in net profit after tax to $160.5 million. A note out of Goldman Sachs reveals that it was expecting the private health insurer to report a 92.2% increase in net profit after tax to $171.4 million.

Ampol half year update and acquisition news

The Ampol Ltd (ASX: ALD) share price is falling following the announcement of its half year results and a major acquisition. Although the fuel retailer delivered strong first half profit growth, its outlook appears to have spooked investors. Management warned that lockdowns were impacting fuel and convenience sales in July and August. Ampol also revealed that it has made a non-binding indicative proposal to acquire Z Energy Ltd (ASX: ZEL) for NZ$3.78 cash per share. This values Z Energy’s equity at NZ$2 billion.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Nearmap Ltd (ASX: NEA) share price with an 8% gain. This is despite there being no news out of the aerial imagery technology and location data company since its full year results last Wednesday. The worst performer on the ASX 200 has been the NIB share price with a 10% decline. This follows the release of its full year results.

The post ASX 200 midday update: NIB sinks and Sonic falls on full year results appeared first on The Motley Fool Australia.

More reading

• NIB (ASX:NHF) share price sinks 11% despite profit surge
• Ampol (ASX:ALD) share price sinks on half year results and acquisition news
• Sonic Healthcare (ASX:SHL) share price on watch after 149% profit boost in FY21
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• 5 things to watch on the ASX 200 on Monday

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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended NIB Holdings Limited and Sonic Healthcare 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 MetalsTech Ltd (ASX: MTC) share price is rallying in late morning trade following a positive move by its directors.

At the time of writing, the gold explorer’s shares are up 15.38% to 23 cents. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.1% to 7,734 points.

What happened?

According to its release, MetalsTech advised that between 17 August and 20 August, a number of directors bought more shares in the company.

Geosmart Consulting, an entity in which MetalsTech director Dr Qingtao Zeng is also a director, purchased 75,000 shares on-market. This is for a total cash consideration of $15,000. In addition, Dr Zeng picked up another 50,000 shares for $10,000 to add to his own personal holding.

Natres Services, an entity of which MetalsTech chair Russell Moran is a director, bought 228,803 shares on market. The value of this purchase is for a total amount of $44,867.

And lastly, Internatzionale Trust, an entity of which MetalsTech director Gino D’Anna is a director, obtained 40,000 shares on market for $7,830.

No doubt, the latest purchases from each of the directors has transformed into positive sentiment for investors. Traditionally, when a company’s owners or directors take part in buying more shares, it is a sign of good things to come.

MetalsTech chair, Russell Moran commented:

MetalsTech is well funded having received $6.7 million in cash from Lithium Royalty Corp in July and drilling is expected to commence imminently at the 1.5Moz Sturec Gold Mine. The company is not in a ‘blackout period’ under its securities trading policy so the board and its related parties were happy to capitalise on the opportunity to purchase more MTC shares.

About the MetalsTech share price

Over the last 12 months, MetalsTech shares have gained around 7%, with year-to-date up almost 10%. The company’s share price hit a 52-week high of 34.5 cents in early June, before treading lower due to profit-taking.

Based on today’s price, MetalsTech presides a market capitalisation of roughly $35.7 million, with 158 million shares on its registry.

The post Why the MetalsTech (ASX:MTC) share price is soaring 15% today appeared first on The Motley Fool Australia.

More reading

• IGO (ASX:IGO) share price climbs on lithium production update
• The Latitude (ASX:LFS) share price falling today despite profit boost
• Spark Infrastructure (ASX:SKI) share price jumps after takeover update
• What’s with the Huon (ASX:HUO) share price today?
• The Telstra (ASX:TLS) share price has gained 23% in the last 6 months

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 IGO Ltd (ASX: IGO) share price has jumped out of the starting blocks from the opening of trade on Monday.

IGO shares are on the move as the mining company released an announcement before the open.

Let’s investigate further.

What did IGO announce?

IGO advised that its Kwinana lithium hydroxide refinery has “produced its fist lithium hydroxide chemical product”.

Recall that IGO owns a 49% interest in Kwinana through an “incorporated joint venture (JV)” with Tianqi Lithium Corporation.

The JV also grants IGO exposure to the Greenbushes mine, “the largest, highest-grade lithium mine in the world” as per the announcement. This exposure comes in the form of a 25% “indirect interest” in the mine.

Moreover, with the “first lithium hydroxide production now demonstrated”, IGO intends to turn its first production train (Train 1) “on a continuous, rather than batch basis”.

IGO expects the “saleable product” will be produced by the back end of 2021. Further, it expects “battery-grade production for accreditation by customers” will be ready by the “March 2022 quarter”, as per the company.

Furthermore, the commissioning of Train 1 “has progressed at a pace over recent months”. The commissioning program sees each of the “individual unit processes” sequentially commissioned.

Train 1 is expected to “progressively ramp up” to the design production rate of “24kpta lithium hydroxide by the end of 2022”.

Investors have pushed the IGO share price higher on the back of this news.

IGO shares are now exchanging hands at $9.23 apiece, a 4.77% jump into the green from the open.

What did management say?

IGO managing director and CEO Peter Bradford said:

We are therefore delighted to have achieved this first important step in the commissioning of Train 1 and to have done so ahead of the internal schedule developed earlier this year. We congratulate the Kwinana team on this milestone and their progress over the last few months.

Bradford also added:

The strong demand being witnessed in the lithium market globally reinforces the strategic nature of Kwinana which, together with the Lithium JV’s interest in the Greenbushes mine, is rapidly evolving into a globally significant, integrated lithium operation catering to the specific needs of premium lithium-ion battery manufacturers.

IGO share price snapshot

The IGO share price has climbed 43% into the green since January 1, extending the previous 12 months’ gain of 105%.

Despite this, IGO shares are 7.5% in the red over the past week.

Both of these returns have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.

The post IGO (ASX:IGO) share price climbs on lithium production update appeared first on The Motley Fool Australia.

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• Can the Western Areas (ASX:WSA) takeover prompt BHP (ASX:BHP) to go nickel shopping?
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• Why BHP, Codan, IGO, & Origin shares are dropping
• Why the IGO (ASX:IGO) share price is sliding 8% today
• Western Areas (ASX:WSA) share price rockets 18% on IGO takeover interest

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 Latitude Group Holdings Ltd (ASX: LFS) share price is sinking in late morning trade, down 1.3% to $2.30 per share.

Below we take a look at the financial services company’s half year financial results for the period ending 30 June 2021.

The Latitude share price drops on half year results

• Statutory net profit after tax (NPAT) of $89.5 million, up 524% from the previous corresponding period (PCP)
• Cash NPAT of $121 million, up 81% from the PCP
• Volumes of $3.6 billion, up 5% on the PCP
• Return on equity (ROE) of 19.1%, and a return on tangible equity (ROTE) of 54.4%
• Dividend of 7.85 cents per share ($78.5 million)

What happened during the reporting period for Latitude?

During the half year, Latitude reported total volume – excluding its travel and international category, which was impacted by COVID-19 – increased by 11% compared to the PCP.

Personal and auto loans were a standout performer, increasing 37% on the PCP, with 35% growth in Australia and 46% growth in New Zealand.

The company’s buy now, pay later (BNPL) offering also saw strong growth, with a 73% increase in the LatitudePay customer base on PCP, and the company reporting 458,000 open accounts.

The half year also saw Latitude settle the refinancing of its $1.04 billion Australian Personal Loans Warehouse Facility. It established a new $1.06 billion Australia and New Zealand Sales Finance and Credit Cards Warehouse to replace a prior cards warehouse facility.

What did management say?

Commenting on the half year results, Latitude’s CEO Ahmed Fahour said:

This is a strong result that delivers cash NPAT just above the top end of guidance of $120 million for 1H21. The 37% volume growth in our personal and auto lending business across both Australia and New Zealand was particularly pleasing. Latitude is now the number two originator of new personal loans in Australia and one of the leaders in New Zealand…

Latitude is entering the 2H21 with a number of opportunities to grow our core instalments and lending businesses, as demonstrated by the acquisition of Symple Loans. We are accelerating our big ticket BNPL offer LatitudePay+, which allows LatitudePay customers to make purchases of up to $10,000, we have relaunched our insurance product and are well advanced in our plans for Asia.

What’s next for Latitude?

Looking ahead, Latitude cautioned that new rounds of COVID lockdowns in Australia and New Zealand are slowing economic activity at the moment. But the company expects this to bounce back rapidly after restrictions ease.

It pointed to the 43% increase in its volumes (compared to the average over the previous 3 months) in Victoria in November 2020, when the state eased restrictions.

Latitude’s directors indicated that the second half dividend for 2021 will remain at 7.85 cents, and they expect it to be fully franked.

The Latitude share price is down 15% since 20 April.

The post The Latitude (ASX:LFS) share price falling today despite profit boost appeared first on The Motley Fool Australia.

More reading

• Here are the 10 top moving ASX shares on Monday
• Why Family Zone, IAG, Latitude, & Suncorp shares are charging higher
• Latitude (ASX:LFS) share price rises on $200m Symple acquisition

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 Spark Infrastructure Group (ASX: SKI) share price has stepped into the green after the opening of trade on Monday.

Spark shares are on the move after the infrastructure company made a key announcement before the open.

Let’s peel back the layers and uncover what was in the announcement.

What did Spark Infrastructure announce?

Spark advised it has entered into a “scheme implementation deed” with a consortium of investors. The scheme is to “acquire all of the units” in the Spark Infrastructure trust.

The consortium involves Kohlberg Kravis Roberts & Co (KKR & Co), the Ontario Teachers’ Pension Plan, and Public Sector Pension Investments, as per the release.

In addition, the offer of $2.95 per stapled security, values Spark at an “equity value of $5.2 billion,” thereby giving an enterprise value (EV) of $10.1 billion.

Moreover, Spark shareholders will received the $2.95 per security “before franking credits”. This may be combined with “additional consideration” if the scheme hasn’t been implemented by 15 February 2022.

This consideration sees Spark security holders “entitled to a cash consideration” of 1 cent per share on 15 February, and “approximately 1 cents per share thereafter, calculated daily” until the actual implementation.

Furthermore, Spark provided a breakdown of the $2.95 per stapled security price point in the announcement. To illustrate, the $2.95 figure comprises:

• A cash offer of $2.7675 per share from the consortium
• A distribution of 6.25 cents per share for 2021 interim payment
• A franked “special distribution” expected to be around 12 cents per share

Investors can expect their dividend “franked to the fullest extent possible”. This gives Spark security holders “an additional benefit of approximately 5 cents per share”.

The scheme is subject to shareholder approval in meetings pencilled in for the end of 2021.

Spark’s board of directors “unanimously recommends” that security holders vote in favour of the scheme.

Investors have favoured the news, driving the Spark Infrastructure share price higher in early trade.

To illustrate, Spark shares are now exchanging hands at $2.84, a 2.53% jump from the open.

What did management say?

Spark Infrastructure chair Doug McTaggart said:

The Spark Infrastructure Board unanimously recommends Securityholders vote in favour of the Schemes in the absence of a superior proposal and subject to the independent expert concluding and continuing to conclude that the Schemes are in the best interests of Spark Infrastructure securityholders.

Morevoer, Spark managing director Rick Francis added:

Spark Infrastructure’s businesses will continue to play a critical role in the transformation of Australia’s energy sector. The investments we have made in distribution, transmission and renewables put Spark Infrastructure front and centre of Australia’s low-emissions energy future. We are pleased this has been recognised in the Scheme consideration agreed with the Consortium.

Spark Infrastructure share price snapshot

Spark shares have gained 30% over the past year. This has been helped by the Spark Infrastructure share price rising 34% year to date.

These results have outpaced the S&P/ASX 200 Index (ASX: XJO) return of around 25% over the past year.

The post Spark Infrastructure (ASX:SKI) share price jumps after takeover update appeared first on The Motley Fool Australia.

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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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