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The Objective Corporation Limited (ASX: OCL) share price is among the best performers on the All Ordinaries on Thursday following the release of its full year results.

In afternoon trade, the information technology software and services provider’s shares are up 6% to a record high of $18.68.

Objective share price higher after delivering strong profit growth

• Revenue increased 36% to $95 million
• Annualised recurring revenue (ARR) up 31% to $74 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 49% to $26 million
• Net profit after tax rose 45% to $16 million
• Research and development of $23 million or 24% of revenue

What happened in FY21 for Objective Corp?

All sides of the Objective Corp business were on form during FY 2021, delivering solid growth in ARR. This goes someway to explaining why the Objective share price has been such a positive performer today.

The release explains that Objective ECM ARR increased 73%, Objective Connect ARR rose 30%, Objective Trapeze ARR jumped 34%, and Objective Regworks ARR rose 33%. This means that 73.7% of the company’s revenue is now recurring in nature. While this is down slightly in percentage term from a year earlier, it is up significantly over the last few years.

The good news is that its ARR of $74 million is still a fraction of its total addressable market. Today’s presentation highlights that Objective has TAM of over US$200 billion across the ANZ, UK, and US markets.

What did management say?

While management hasn’t commented on the result today, last month it released an update and spoke about the last 12 months.

Objective’s CEO, Tony Walls, said: “We are really pleased with our performance in FY 2021 – delivering outstanding outcomes for our customers, and protecting our employees and their families while facing an uncertain operating environment. Our financial results in FY2021 reflects the continued delivery of our strategic plan, with strong growth in recurring revenue and earnings underpinning our highest ever investment in innovation.”

What’s next for Objective?

Positively for shareholders and the Objective share price, management appears confident that its strong performance will continue in FY 2022.

While no real guidance has been provided, it has stated that it expects “material revenue and profit growth in FY2022.”

Following today’s gain, the Objective share price is up 63% since the start of the year.

The post Objective (ASX:OCL) share price jumps 6% to record high on strong FY 2021 result appeared first on The Motley Fool Australia.

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• Why the Objective (ASX:OCL) share price is racing to an all-time high 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 Objective Corporation 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 DGL Group Ltd (ASX: DGL) share price is again flying higher today. This comes after the chemical company announced the acquisition of Opal Australasia late yesterday afternoon.

At the time of writing, DGL shares are up 10.03% to $1.81. Over the previous 2 days, the company’s share price is hovering above 16%, reflecting an upbeat sentiment from investors.

DGL expands market access

According to its release, DGL advised it has strategically acquired contract formulator and packaging business, Opal Australasia for $8.6 million.

Based in the Kwinana Industrial Area, Opal is one of two independent agricultural chemical toll manufacturing companies in Western Australia. The group provides specialised product and formulation development services to a majority of chemical suppliers within the industry.

The agreed purchase price represents a valuation of 5.1 times the last twelve months of Opal’s earnings. The deal is expected to be funded by both cash and shares, with the latter valued at $1.9 million.

DGL stated that the takeover will provide it access to a number of agricultural customers on Australia’s west coast. In addition, the company’s manufacturing capacity is also expected to increase in excess of 150,000 tonnes per annum.

DGL founder and CEO, Simon Henry commented:

Opal brings to our business a substantial foothold in the Western Australian market. It means we can now adequately service Western Australia’s grain industry, the largest agricultural sector in the state, which also represents around 40 percent of Australia’s grain exports.

Through this acquisition, we will have Australia’s agriculture market covered, and with a presence on both the east and west coast of Australia, it will provide a natural hedge on varying drought cycles.

About the DGL share price

It’s been an impressive start since DGL entered the ASX in late May with a share price of $1. The company has made quick progress which has been reflected in its share price.

Based on valuation metrics, DGL presides a market capitalisation of roughly $429.1 million, with 257 million shares outstanding.

The post DGL (ASX:DGL) share price continues to soar, up 16% in the last 2 days appeared first on The Motley Fool Australia.

More reading

• 5 small-cap ASX shares on their way up

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 Woolworths Group Ltd (ASX: WOW) share price is climbing today, currently up 0.53% to $39.68.

Investors in the ASX retail giant appear unfazed by the prospect that Woolies may need to stump up the funds for private security guards to enforce COVID-19 compliance in the stores.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is also up slightly, by 0.19%, to 7,517 points.

Where COVID is spreading

As most Aussies were sleeping last night, 28 new grocery stores were added to the New South Wales coronavirus exposure sites list.

And that, as news.com reports, isn’t sitting well with NSW Police Minister David Elliott.

This morning, speaking on Nine’s breakfast show Today, Elliot told host Karl Stefanovic supermarkets have an “obligation” to ensure their customers are signing in and using the QR codes:

The health orders say you need to take reasonable action to ensure you’re complying. How are we supposed to contact those people that attended that supermarket (that has been exposed) unless we have the tracing?”

Accepting that regular instore staff might not be in a position to refuse entry to unruly customers, Elliot said supermarkets should hire their own private bouncers to ensure compliance:

If you believe your staff would be at risk, then spend the extra money and get security personnel put on the door. We’re not doing it to dish out penalties; we are not doing it to scare people.

This is an action that the public health orders have said will allow us to contact anybody that has been in a supermarket when it’s been exposed. Supermarkets are no different to every other business; just comply with the regulations and you’ve got a responsibility.

Adding round-the-clock security in the stores will certainly add to operating expenses. But judging by the Woolworths share price moves today, that expense isn’t likely to scare investors away from the stock.

Woolworths share price snapshot

Over the past 12 months, the Woolworths share price is up by 19%, compared to a gain of 25% posted by the ASX 200. Year-to-date, Woolworths shares have outperformed that benchmark, up by 17%.

Woolies also pays a 2.6% dividend yield, fully franked.

The post Woolworths (ASX:WOW) share price unhurt by call for COVID bouncers 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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An ASX-listed company, together with its chief executive, has been accused of spruiking false COVID-killing claims about its products.

The Australian Securities and Investments Commission (ASIC) is suing Holista Colltech Limited (ASX: HCT) and its executive chair Dr Rajendran Marnickavasagar, seeking penalties and declarations from the Federal Court.

The corporate watchdog is also advocating for Marnickavasagar to be banned from managing corporations.

Holista shares are currently in a trading halt, pending a response from the Western Australian company.

The stock last traded for 6.6 cents, giving Holista a market capitalisation of around $18 million.

The accusations against Holista

Marnickavasagar allegedly stated in a YouTube video in February 2020 that Holista’s NatShield sanitiser spray killed the coronavirus “involved in the current Wuhan outbreak”.

ASIC is claiming this was misleading as the product had not been tested against COVID-19 at the time.

Holista also announced to the ASX on 9 April 2020 that 415,000 bottles of NatShield were purchased by a business named Health Therapies. 

ASIC alleges this $3.8 million order had not been placed at the time.

The ASX company then disclosed to the market on 9 July 2020 that the Health Therapies deal would not be met, and its total revenue for the financial year was back down to just $500,000.

In another ASX announcement in February 2020, Holista claimed it had executed a binding term sheet with another business to collaborate on a new sanitising nasal balm product.

This disclosure is also alleged to be false, as ASIC claims the deal was actually executed 2 months later.

ASIC deputy chair Sarah Court said her organisation is continuing to focus on misleading claims about COVID-19.

“In this case, we are concerned by the allegedly misleading claims, made when there were concerns about a potential pandemic, that NatShield was effective against the virus later known as COVID-19 when it had not been tested against that virus.”

The corporate regulator is accusing Holista of violations of the Corporations Act in its civil proceedings.

The post ASIC accuses ASX company of misleading COVID-19 claims appeared first on The Motley Fool Australia.

More reading

• DGL (ASX:DGL) share price continues to soar, up 16% in the last 2 days
• Woolworths (ASX:WOW) share price unhurt by call for COVID bouncers
• Are Investors Still Underestimating Alphabet?
• Pilbara Minerals (ASX:PLS) share price rallies 14% in just four days
• Pinnacle (ASX:PNI) share price lifts 6% on FY21 results

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

Alphabet (NASDAQ: GOOG), (NASDAQ: GOOGL), otherwise known as Google, is one of the largest companies in the world by market cap. Shares of the tech giant are up over 5,000% since its IPO in 2004, and the company now has a market cap of $1.8 trillion. But if its latest results are any indication, the company is showing no signs of slowing down. Here are five reasons investors might still be underestimating Alphabet.

Google Services margin expansion

In its latest quarter (second quarter of 2021), Google Services, which houses all search, advertising, and premium consumer products, did $57 billion in revenue. This was up 63.1% from the second quarter of 2020. 2020 was an easy comparison because of the slowdown in advertising spend that happened last year due to the pandemic, but Google is showing once again that its core advertising business can grow even at this massive scale.

What’s more, Google Services generated $22.3 billion in operating income in the quarter, giving the segment 39% operating margins. Margins continue to march higher for Google Services, too. For example, in Q2 of 2017 Google Services had 29% operating margins, meaning that in the last five years the segment has expanded margins by 10%. As this business continues to scale over the next five years, investors should expect this to continue. 

YouTube shines

The highlight of the Google Services segment right now is YouTube. Revenue for the video platform hit $7 billion in Q2, up 84% year over year. Like Google Services as a whole, YouTube will not grow this fast indefinitely, but the platform is becoming more and more meaningful to Google’s overall business every quarter. 

On the conference call, management mentioned that YouTube shorts have surpassed 15 billion daily views, over 120 million people watch YouTube on TVs in the U.S. every month, and Google paid more to YouTube creators and partners than in any quarter of the company’s history. The platform is also investing heavily in e-commerce tools for video creators, which is another large avenue of growth Google can go after. 

While YouTube makes up only 11% of Google’s overall revenue right now, the platform continues to dominate ad-supported video and still has plenty of room to grow around the globe. 

Cloud chugging along

Outside of Google Services, the growth of Google Cloud remained strong in Q2, hitting $4.63 billion in revenue. Sales were up 53.9% year over year and now make up 7.5% of Alphabet’s overall revenue. Researchers predict that the cloud computing industry will grow from $371.4 billion in annual spending last year to $832.1 billion in 2025.

With only a few companies like Amazon, Microsoft, IBM, Alibaba, and Oracle competing for cloud infrastructure contracts, Google Cloud has a clear path to grow revenue over the next five years. 

Don’t forget “other bets”

The “other bets” segment houses Google’s moonshot projects, which are high-risk endeavors that may never reach commercial viability. In Q2, other bets revenue was a paltry $192 million, and it lost $1.4 billion, weighing on Alphabet’s overall profit margins. While none of these projects will be meaningful for quite a while, if ever, a lot of them have tons of potential.

Waymo, the company’s self-driving unit, has done tens of thousands of rides with no drivers in Phoenix, Arizona, and looks to have the lead in autonomous driving technology. Its artificial intelligence (AI) division DeepMind is on pace to amass a database of every single protein sequence known to science. Both of these projects (self-driving and AI) require billions in research to move the industries forward. Alphabet is one of the few companies in the world that can lose $1.4 billion on these projects while still generating tens of billions in consolidated annual profits. 

Share repurchases

Finally, Alphabet has recently poured billions into share repurchases, which will help return cash to shareholders and boost the company’s overall free cash flow per share. Since the start of 2019, Alphabet’s share count has gone from around 696 million down to 667 million, where it sits today.

Through the first half of 2021, Alphabet spent $24 billion repurchasing shares of its common stock. And with over $100 billion in cash and equivalents on its balance sheet and business units that generate tens of billions in cash a year, Google has a clear runway to repurchase more and more stock over the next decade. 

GOOG Free Cash Flow data by YCharts

A lot of people (myself included) might think they’ve missed the boat investing in Google because the company now has a market cap of $1.8 trillion. But with Alphabet having so many exciting projects, increasing margins, and share repurchases, it looks like investors are still underestimating its stock.

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

The post Are Investors Still Underestimating Alphabet? appeared first on The Motley Fool Australia.

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Brett Schafer has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. 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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We’re only four days into August but the Pilbara Minerals Ltd (ASX: PLS) share price has managed to go up 17.5% to a fresh record high of $2.11 on Thursday.

As equally as impressive is its year-to-date and 12-month performance, surging 136% and 488% respectively.

With a seemingly outstanding share price performance at every time frame, what’s the rocket fuel behind the Pilbara Minerals share price?

The lithium sector is running hot

Whether it’s an aspiring lithium explorer or an emerging producer, ASX-lithium shares are running to multi-year or record all-time highs across the board.

On the larger end of town, Galaxy Resources Limited (ASX: GXY) is up 113% year-to-date to decade highs, while the Orocobre Limited (ASX: ORE) share price has added 90.75% year-to-date to all-time record highs.

Emerging lithium producers such as Vulcan Energy Resources Ltd (ASX: VUL) and Core Lithium Ltd (ASX: CXO) have rallied strongly in August, up 15% and 17% respectively.

Lithium explorers including Liontown Resources Limited (ASX: LTR) and Lake Resources N.L. (ASX: LKE) have also surged in valuation, up a respective 7.1% and 31% in August.

The bullish performance of the lithium sector bodes well for the strong performing Pilbara Minerals share price.

Lithium spot price recovery

In the same way, surging iron ore spot prices have helped prop up iron ore majors such as BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG). A strong rebound in lithium prices in the last 8 months has helped the Pilbara Minerals share price to make a quick U-turn from multi-year lows in late 2020 to record highs today.

Orocobre’s quarterly results are a good example that its lithium margins have rebounded in the last 12-months.

Back in the June quarter of 2020, Orocobre was selling its lithium carbonate for US$3,913/tonne despite cost of sales of US$3,920.

These challenging conditions resulted in a net loss of $67.1 million for the company for FY20.

Fast forward to today, Orocobre reported average sales pricing of US$8,476/tonne.

Why the Pilbara Minerals share price is trading lower on Thursday

In light of all the positive commentary and hype around the lithium sector, the Pilbara Minerals share price has edged 1.94% lower to $2.03 on Thursday.

The broader ASX lithium sector is pulling back, with heavyweights Galaxy and Orocobre also trading 0.62% and 0.47% lower.

Despite a red day today, these lithium shares have all rallied strongly in the past few days.

So perhaps it is only natural to see some profit-taking and selling pressure take place.

The post Pilbara Minerals (ASX:PLS) share price rallies 14% in just four days appeared first on The Motley Fool Australia.

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• Why the Pilbara Minerals (ASX:PLS) share price is up 15% this week
• ASX 200 midday update: GUD results, Woodside update, ANZ appointment
• Why Afterpay, Bellevue Gold, Pilbara Minerals, & Zip are charging higher
• Why ASX lithium shares are beating the iron ore majors – again

Motley Fool contributor Kerry Sun owns shares of Core Exploration Ltd. and Vulcan Energy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Pinnacle Investment Management Group Ltd (ASX: PNI) shares have jumped out of the starting blocks and well into the green from the open today. At the time of writing, the Pinnacle share price is trading 5.87% higher at $14.43.

Today’s gains arrive after Pinnacle released an investor presentation and its FY21 results highlights to the market after yesterday’s close.

What did Pinnacle release?

Pinnacle released the highlights of its FY21 financial results late yesterday, recognising net profit after tax (NPAT) of $67 million. This represented year-on-year (YoY) growth of 108% on the prior corresponding period.

Shareholders also enjoyed a 100% increase in dividends per share, on a payout of 17 cents per share – up from 8.5 cents a year prior.

Further, Pinnacle recognised NPAT of $66.4 million from its affiliates, a 75% YoY increase.

In addition, the firm recognised net inflows of $16.7 billion for FY21, helping to realise a 52% YoY gain in funds under management (FUM) to $89.4 billion.

Pinnacle also highlighted the growth in FUM and inflows from investors “outside of Australia” during the year.

Speaking on the release, Pinnacle managing director Ian Macoun said:

Despite the turbulence in markets and the broader economy during the previous financial year, we made a conscious decision to keep our core capabilities well resourced to enable us to both continue to support the affiliates and to remain well-positioned for further growth.

The Pinnacle share price is running hot today, having jumped almost 10% to an intraday high of $14.96 before partially retreating.

What else did Pinnace report?

Pinnacle also released its corporate sustainability report after the end of play yesterday. In it, the company detailed several progress points achieved throughout FY21 and the vision for FY22.

For instance, Pinnacle established a “sustainability committee” to integrate sustainability practices into its business.

Moreover, it also achieved “carbon neutral certification for FY20 emissions” and transitioned its largest workspace to “100% green energy”.

Pinnacle also made some structural changes throughout FY21 pertaining to its ethical, social and governance (ESG) schedule. Yesterday’s report marks the company’s inaugural corporate sustainability report.

Additionally, with respect to climate change, Pinnacle aligned its own ESG strategy with two key corporate environment and sustainability initiatives, the United Nations’ Sustainable Development Goals, and the Task Force on Climate-Related Financial Disclosures.

Pinnacle Investment share price snapshot

Including today’s gains, the Pinnacle share price has posted a year-to-date return of almost 100%, extending the previous 12 months’ gains to around 163%.

Over the past month alone, Pinnacle shares have climbed around 21% into the green.

The company’s performance has beaten the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% over the past year.

The post Pinnacle (ASX:PNI) share price lifts 6% on FY21 results appeared first on The Motley Fool Australia.

More reading

• The Pinnacle (ASX: PNI) share price hit an all-time high this week
• The Pinnacle (ASX:PNI) share price has gone up around 170% over the last 12 months
• 5 things to watch on the ASX 200 on Wednesday
• 2 exciting ASX growth shares that might be worth buying

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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has fought back from a soft start and is pushing higher. The benchmark index is currently up 0.15% to 7,514.8 points.

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

Energy shares drag on the ASX 200

Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and other ASX 200 energy shares are trading lower today and acting as a drag on the ASX 200. This follows a pullback in oil prices overnight after a build-up in US stockpiles. According to Bloomberg, the WTI crude oil price is down 3.7% to US$67.98 a barrel and the Brent crude oil price has fallen 3% to US$70.20 a barrel.

Resolute Mining offloads troubled asset

The Resolute Mining Limited (ASX: RSG) share price is storming higher today. This follows news that the gold miner has finally found an acceptable buyer for its interest in the Bibiani mine in Ghana. According to the release, Resolute has agreed to sell the mine to Asante Gold Corporation for $90 million in cash. Positively, this agreement has received Ministerial Consent. Earlier this year the Minister had blocked the sale of the asset to China’s Chifeng Jilong for ~$105 million.

Xero shares higher following bullish broker note

The Xero Limited (ASX: XRO) share price is pushing higher today. This follows a positive reaction by Goldman Sachs to the launch of the cloud accounting platform provider’s App Store in the ANZ and UK markets. According to the note, the broker has retained its buy rating and $165.00 price target on the company’s shares.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Resolute Mining share price with a 5% gain. This follows the announcement of an agreement to sell its interest in the Bibiani Mine. The worst performer on the ASX 200 has been the Santos share price with a 2% decline following the weakness in oil prices.

The post ASX 200 midday update: Energy shares drop, Resolute jumps, Xero higher appeared first on The Motley Fool Australia.

More reading

• Why is the Santos (ASX:STO) share price slipping today?
• Xero (ASX:XRO) share price rises on app store news and broker note
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• These 2 hot ASX shares take up 20% of our fund: manager
• 5 things to watch on the ASX 200 on Thursday

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 Xero. The Motley Fool Australia owns shares of and has recommended Xero. 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 has hit a new all-time high this morning. This comes after The Australian reported the conglomerate was seeking due diligence information from Australian Pharmaceutical Industries Ltd (ASX: API) to potentially make a new takeover bid.

At the time of writing, shares in the retail and industry giant are trading for $63.15 – up 0.95%. Earlier they hit the record price of $63.25. The S&P/ASX 200 Index (ASX: XJO), meanwhile is 0.11% higher.

API rejected Wesfarmers previous offer last week for $1.38 per share, saying it “undervalues API, is not compelling and is not in the best interests of API shareholders”.

Let’s take a closer look at today’s news.

More information please

According to The Australian’s report, Wesfarmers management has reached out to API “for some confidential information about the company so it can lift its offer for the business”.

Apparently, Wesfarmers would only be willing to increase its offer with additional price-sensitive information that is not available to the market.

When API rejected the Perth-based business’ offer last Thursday, the Wesfarmers share price fell.

At the time, API said the offer of an 18.7% premium to its 3-month volume weighted average price was “significantly below the Australian market average for transactions of this nature”. The board also said Wesfarmers bid was “opportunistic” as COVID has had a detrimental impact on the company’s operations.

It also felt its portfolio of complementary wholesale and retail businesses was strategically well-positioned in the growing health, wellness, and beauty sector.

In addition, API noted the potential of its investment in 39 new ‘Clear Skincare’ clinics over the past 3 years.

The Australian reports that API shareholders are optimistic Wesfarmers will negotiate a higher suitable offer for the takeover.

Wesfarmers share price snapshot

Over the past 12 months, the Wesfarmers share price has increased 35.7%. It has outperformed the ASX 200 by 10 percentage points during that time period.

Year-to-date, Wesfarmers shares have appreciated 22.2%. The company will release its full-year results on 27 August.

Wesfarmers has a market capitalisation of around $70.9 billion.

The post Wesfarmers (ASX:WES) share price hits new all-time high on renewed API interest appeared first on The Motley Fool Australia.

More reading

• Why the Wesfarmers (ASX:WES) share price is trading at record highs
• Here’s why the Coles (ASX:COL) share price is up 7% this last month
• Should you buy Wesfarmers (ASX:WES) shares in August 2021 for the dividend yield?
• Is it a good time now to buy Wesfarmers (ASX:WES) shares?
• ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high

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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The Santos Ltd (ASX: STO) share price is in the red today as the price of oil falls and rumours swirl that Santos has attracted buyers for its Dorado project.

Despite ending last week trade trading for US$76.33 per barrel, the price of brent crude oil has slipped to US$70.53 per barrel. The WTI crude oil price hasn’t fared any better. It’s currently US$68.28 per barrel, down from US$73.95.

Additionally, Santos’ Dorado project has reportedly received interest from Mitsui and Mitsubishi.

Right now, the Santos share price is slipping. It’s fallen 1.55% so far today to trade at $6.36 per share.

Let’s take a closer look at what’s driving Santos’ shares lower.

What’s with the Santos share price?

Asset sales

The Santos share price is falling amid reports the company is getting ready to sell part of its share in the Dorado project, located in Western Australia.

According to reporting by The Australian, Mitsui and Mitsubishi are both interested in purchasing 20% of the project. That will see Santos’ holding in Dorado reduced to 60%.

The publication stated Santos’ Van Gogh and Pyrenees projects are also on the table.

Additionally, it said if Santos is successful in taking over Oil Search Ltd (ASX:OSH) it will likely sell more of its assets.

Oil Price

The Santos share price is faltering alongside oil prices. The price of oil has been slipping since OPEC+ pledged to increase oil production in the coming months.

However, that’s likely not the reason for this week’s fall.

According to today’s reporting by Reuters, increased US oil stockpiles and COVID-19’s Delta variant have weighed on the price of oil this week.

The outlet stated China and the US – the world’s biggest oil users ­– are struggling to contain large outbreaks of Delta. The health challenge has seen demand in the countries wane.

Additionally, the increase to US stockpiles has also slowed global demand for oil.

Santos share price snapshot

It’s likely no surprise the Santos share price has been struggling lately.  

It has fallen 11% over the last month alone. Santos’ shares are now trading for about 1% less than they were at the start of 2021. However, they have gained 15% since this time last year.

The post Why is the Santos (ASX:STO) share price slipping today? appeared first on The Motley Fool Australia.

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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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