Tag: Motley Fool

The Boral Limited (ASX: BLD) share price is falling following the end of Seven Group Holdings Ltd‘s (ASX: SVW) grab for the company and the beginning of a leadership shakeup.

Seven Group’s takeover bid finished at 7pm last night with Seven Group left holding 69.6% of Boral’s voting power. This morning, Boral announced several changes to its board.

Right now, the Boral share price is $7.29. That’s 0.68% lower than its previous close and 8 cents less than Seven Group was paying for Boral shares only yesterday.

At the same time, the Seven Group share price is up 0.13% with its shares trading for $23.34 apiece.

Let’s take a closer look at the finale of Seven Group’s takeover of Boral.

Seven Group wins takeover battle

The Boral share price is falling after changes rumoured to be facing Boral’s board following Seven Group’s takeover turned out to be true.

As was previously assumed, Seven Group’s CEO and managing director Ryan Stokes has taken over as chair of Boral’s board as of this morning.

Additionally, Seven Group’s chief financial officer Richard Richards has, indeed, been appointed to Boral’s board.

Now-former chair Kathryn Fagg has stepped down effective immediately.

Using his new title publicly for the first time, Stokes commented on Fagg’s time with Boral. He said:

On behalf of my fellow directors and shareholders I would like to thank Kathryn for her contribution to Boral… Kathryn leaves Boral in a strong position, with an actionable transformation strategy and a well-progressed program of strategic divestments for its US businesses including continuing to assess options for the Fly Ash business. The board is very grateful for her service.

Board members Peter Alexander and Deborah O’Toole will follow Fagg out the door after Boral’s annual general meeting in October.

Seven Group has reiterated its commitment to retaining a majority of independent directors on Boral’s board.

An Independent Director’s Committee has also been put in place at Boral. The company plans to instate a lead independent director to act as chair of the committee in the future.  

Boral share price snapshot

Despite the recent drama, the Boral share price is having a good year on the ASX.

Right now, it has gained 47% since the start of 2021. It is also 95% higher than it was this time last year.

The company has a market capitalisation of around $8 billion, with approximately 1.1 billion shares outstanding.

The post Boral (ASX:BLD) share price falls as Seven wins takeover and outs chair appeared first on The Motley Fool Australia.

More reading

• Boral (ASX:BLD) share price struggles as Seven waits to take over
• Boral (ASX:BLD) share price edges lower on divestment news
• These ASX 200 CEOs have the most wealth tied up in their companies
• Why the Boral (ASX:BLD) share price has gained 45% in 6 months
• Here are 3 top trading ASX 200 shares this Wednesday

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.

from The Motley Fool Australia https://ift.tt/3zNKJHU

The Ampol Ltd (ASX: ALD) share price is in the red today. This comes after the fuel retailer announced it has partnered with the Australian Renewable Energy Agency (ARENA) to fund a national electric vehicle fast-charging network.

The arrangement will see fast-charging stations installed at more than 100 Ampol service stations all over Australia.

Right now, the Ampol share price is $28.43, 0.18% lower than its previous close.

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

Fast charging coming to Ampol

The Ampol share price is down today after the company announced electric vehicle owners will soon be able to charge their cars quickly with Ampol.

As part of the Ampol Addressing Blackspots Fast Charging project, Ampol will be installing fast-charging bays at service stations in the Greater Sydney, Melbourne, Perth, and Brisbane regions.

Newcastle, Wollongong, Geelong, the Sunshine Coast, and the Gold Coast will also see fast-charging bays pop up in the near future.

Each station to receive fast charging will have at least 2 bays available to customers. The charging stations will use renewable energy or electricity covered by green certificates.

ARENA’s Future Fuel Fund is putting $7 million towards the electrified additions to Ampol’s stations.

According to ARENA, the total cost of Ampol’s fast-charging bays will be $26.81 million.

Ampol believes electricity will be the “primary mobility energy source by 2050”.

The news follows the announcement of Ampol’s Future Energy and Decarbonisation Strategy. The strategy, which was made public in May, outlines the company’s goal to reach net zero emissions by 2040.

As part of the strategy, Ampol partnered with clean energy producers and tech giant Tesla Inc to make use of hydrogen energy and solar power. The Ampol share price gained 4.2% over the three trading days following the release of its strategy.

Work to construct Ampol’s fast-charging network will begin before the end of the year.

Ampol is one of 5 applicants to receive a share of ARENA’s Future Fuel Fund’s first round of funding. Round 1 saw $24.55 million handed out by ARENA today.

Combined, the 5 applicants will use the funds to build 403 new fast-charging stations in 8 Australian regions.

Commentary from management

Ampol’s CEO and managing director Matt Halliday commented on today’s news that might be affecting the Ampol share price. He said:

E-mobility infrastructure is a central pillar to capturing our existing customer base through the energy transition, as we look to expand our role in electricity to make the ease of the current liquid fuels era translate into the future (battery electric vehicle) environment. This includes exploring ‘at-forecourt’, ‘at-home’ and ‘at-destination’ solutions.

Ampol share price snapshot

Ampol is in the green on the ASX by the skin of its teeth. Right now, the Ampol share price is 0.74% higher than it was at the start of the year. It has also gained 4.44% since this time last year.

The company has a market capitalisation of around $6.7 billion, with approximately 238 million shares outstanding.

The post Ampol (ASX:ALD) share price falls on $7m funding for EV fast charging appeared first on The Motley Fool Australia.

More reading

• Why the Tesla share price jumped 5% on Thursday
• Here are the US shares ASX investors were buying last week
• Why Tesla stock fell on Tuesday
• Tesla (NASDAQ:TSLA) share price climbs on record revenue and profits
• Why Tesla stock bounced ahead of earnings

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. owns shares of and has recommended Tesla. 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.

from The Motley Fool Australia https://ift.tt/3l8SXq3

The Janus Henderson Group CDI (ASX: JHG) share price is charging higher on Friday morning.

At the time of writing, the fund manager’s shares are up 9% to a multi-year high of $58.50.

This means the Janus Henderson share price is now up 39% since the start of the year.

Why is the Janus Henderson share price charging higher?

Investors have been bidding the Janus Henderson share price higher following the release of an impressive second quarter update.

According to the release, the company reported a 95% increase in second quarter adjusted operating income to US$269.3 million. This was also a 33% increase on its first quarter adjusted operating income.

This allowed the Janus Henderson Board to declare a quarterly dividend of US$0.38 per share and approve a US$200 million share buyback.

Management advised that this strong result was reflective of growth in assets due to positive markets and good investment performance, which translated into significant performance fees.

In respect to its investment performance, the company notes that 66% and 63% of assets under management are outperforming relevant benchmarks on a three- and five-year basis, respectively, as at 30 June 2021.

Management commentary

Janus Henderson’s Chief Executive Officer, Dick Weil, stated: “Second quarter financial results were extremely strong, reflecting growth in assets due to positive markets and good investment performance which translated into significant performance fees, adjusted operating income and EPS.”

“Our strong balance sheet, cash flow generation and financial discipline allow us to increase the return of excess cash to shareholders with the US$200 million accretive buyback announced today.”

“While we continue to make progress towards sustained organic growth, we are winning high-quality new business which is driving our net management fee rate higher during a period of fee compression in the industry. I am confident that our strategy of Simple Excellence has us on the right path to a stronger, more profitable and resilient company positioned well for long-term growth and value creation,” he concluded.

The post Janus Henderson (ASX:JHG) share price jumps 9% to multi-year high appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• A dividend bonanza could be inbound for ASX shares, here’s why

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.

from The Motley Fool Australia https://ift.tt/3laV0Kb

The Mesoblast limited (ASX: MSB) share price is under pressure again on Friday.

In morning trade, the allogeneic cellular medicines developer’s shares are down over 1% to $1.89.

Why is the Mesoblast share price on the move?

The Mesoblast share price is trading lower ollowing the release of its fourth quarter update this morning. That update revealed further significant cash burn during the three months by the embattled biotech.

According to the release, Mesoblast recorded Temcell royalties of US$1.9 million for the quarter. However, this was nowhere near enough to stop the company from burning through significant cash again.

Mesoblast reported net cash usage of US$20.7 million for the three months ended 30 June. This includes an investment of US$10.8 million related to remestemcel-L for steroid refractory acute graft versus host disease (SR-aGVHD) and COVID-19 acute respiratory distress syndrome (ARDS).

Mesoblast had a cash balance of US$136.9 million at the end of the period, down from $158.3 million at the end of March.

COVID ARDS update

The Mesoblast share price has been sold off this year due to concerns over its COVID-19 ARDS trial. It was halted in December following analysis by the Data Safety Monitoring Board. This put its game-changing deal with pharma giant Novartis under threat.

Today’s update reveals that Mesoblast met with the FDA this week in relation to COVID-19 ARD and to determine the registration pathway for approval of remestemcel-L in this indication. No details were provided, but formal minutes are expected in the coming weeks

Management also advised that its agreement with Novartis remains in place but continues to be subject to certain closing conditions. This includes time to analyse the results from the COVID-19 ARDS trial.

The Mesoblast share price has lost over half of its value since this time last year.

The post Why the Mesoblast (ASX:MSB) share price is dropping on Friday appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher
• These were the worst performing ASX 200 shares last week
• Here’s why the Mesoblast (ASX:MSB) share price is sinking today
• 3 ASX healthcare shares with big news coming

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.

from The Motley Fool Australia https://ift.tt/3ycZMKJ

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.

Streaming giant Netflix (NASDAQ: NFLX) recently hired a gaming-industry veteran as part of its plan to add a video game collection to its platform. Shortly after that hire, the company’s second-quarter shareholder letter revealed some detail about its strategy for this medium, but there are still questions left unanswered.

Analysts and reporters have had a field day sharing their theories on what Netflix games could look like. A senior analyst at Wedbush has already called Netflix’s foray into gaming “dead on arrival” in an interview with Yahoo! Finance. More hopeful fans and investors think the company will prove the doubters wrong by innovating where other tech giants have failed in the gaming industry.

Realistically, there are only a few paths the company can take based on the information Netflix leadership has provided. Here’s the likelihood of each path and what each of them would mean for the company.

Interactive experiences instead of games

There’s a case to be made that Netflix’s gaming ambitions could look less like traditional video games and more like a whole new genre of “interactive experiences” for its intellectual property. A search of recent job openings at Netflix reveals some fresh insight — a director-level job opening in the company’s new “Interactive initiative” refers to building “game-like experiences” as an opportunity for the role.

However, digging further into other postings reveals a totally separate initiative called “Game Studio” (or just “Games”). The separation of “Interactive” and “Games” departments in the company’s recruiting language implies two budding departments. Netflix seems to be developing more content like Black Mirror: Bandersnatch, which is a good, low-risk path for the company, but these efforts will likely be separate from its foray into gaming.

The company’s remarks in its recent shareholder letter and earnings call reinforce this separation with Netflix COO Greg Peters calling ad-free mobile gaming a “primary focus” — at least initially. In the long term, the company sees all Netflix-compatible devices, including your TV, as “candidates for some kind of game experience.”

Sticking to mobile-only gaming

If we look at the history of the IP-based mobile gaming space, we can find a few examples of companies that succeeded in growing out this medium. We can also find examples of failures. Walt Disney comes to mind as an example of both success and failure over the course of its history.

While Disney has developed some successful mobile games on its own, the company made a shift around 2016 toward a greater reliance on third-party development for its IP. This shift included the shutdown of multiple in-house projects in favor of seeking partnerships with outside parties.

That said, Disney’s decision to shut down in-house mobile games was based on their performance, and Netflix’s definition of a high-performing game will undoubtedly be different than Disney’s. Netflix will have a massive differentiator in free-to-play mobile gaming — not relying on ads and in-app purchases in a space where virtually all major competitors do. Because Netflix doesn’t need to directly monetize its mobile games, it can succeed where Disney failed. For this reason, the streaming company’s efforts are likely to be lower risk than what its peers attempted.

Licensing content from third parties

In Netflix’s second-quarter earnings call, COO Greg Peters claimed Netflix will also license games as part of its offerings. This brief comment has been overlooked in most discussions about the news so far, but it could have big implications for its success.

In addition to developing mobile games in-house, Netflix may license existing mobile games to build an attractive lineup before investing heavily in first-party content. If that strategy sounds familiar, it’s because that’s exactly how the company succeeded in streaming movies and TV series. Such a move would bolster the company’s initial video game offering, familiarize subscribers with its gaming platform, and offer lessons to support the roll-out of in-house titles.

Avoid console and PC games

The Netflix-compatible devices that the company sees as candidates for its gaming platform include consoles, smart TVs, and PCs. However, it’s no secret in the gaming industry that major tech companies fail often in their pursuit of the console and PC gaming markets.

For example, recall Amazon Game Studios’ inability to create a single hit game despite flashy industry hires. And don’t forget Alphabet, which hired hundreds of developers to support the growth of its Google Stadia gaming platform only to shut down in-house development soon after.

While these failures don’t necessarily doom Netflix, they don’t paint a picture of a promising opportunity in console and PC gaming. Netflix is more suited to develop less complex, lower-budget mobile games that can differentiate themselves from the competition.

Now what

Netflix subscribers could be playing games on the platform as soon as next year, according to Bloomberg. That aggressive timeline makes sense assuming the first games to roll out will be licensed or in-house mobile games.

Overall, this risky bet on gaming could pay off, and it makes sense as the streaming giant’s next step to take advantage of its valuable IP and massive subscriber base. As long as Netflix sticks to the three viable strategies outlined above — interactive experiences, mobile gaming, and third-party licensing — investors should be optimistic about this next chapter of the company’s growth story.

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

The post 3 ways Netflix can make gaming work –and 1 way it can’t appeared first on The Motley Fool Australia.

More reading

• Is Netflix’s move into gaming a sign its best days are over?
• Google (NASDAQ:GOOG) share price climbs on blockbuster earnings
• Why Netflix’s Q2 earnings suggest subscriber growth for Disney+
• Are Netflix’s growth days over?
• Why Netflix stock fell nearly 5% on Wednesday

Taylor Weldon 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Netflix, and Walt Disney. 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), Amazon, Netflix, and Walt Disney. 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.

from The Motley Fool Australia https://ift.tt/37aTTSp

The Origin Energy Ltd (ASX: ORG) share price is crashing lower on Friday morning.

At the time of writing, the energy company’s shares are down 8% to $4.10.

Why is the Origin share price crashing?

The catalyst for the weakness in the Origin share price on Friday has been the release of an update this morning.

According to the release, Origin expects to recognise non-cash impairment charges of $2,247 million post-tax in FY 2021.

This comprises $1,578 million of post-tax charges relating to Energy Markets goodwill and generation assets, and a tax expense of $669 million relating to a deferred tax liability. The latter reflects the expectation of increased distributable free cash flow and future unfranked distributions from Australia Pacific LNG.

In respect to its Energy Markets and generation assets goodwill charge, management advised that this is largely to reflect a significant reduction in wholesale electricity prices. It also takes into account a contraction in near-term gas earnings as a result of higher procurement costs and subdued business customer demand.

Outlook

Given that these charges are non-cash, they won’t impact its FY 2021 Energy Markets underlying EBITDA guidance of $940 million to $1,020 million.

While that is positive, its outlook for the Energy Markets business in FY 2022 certainly isn’t. Origin expects FY 2022 underlying EBITDA for Energy Markets to fall materially to $450 million to $600 million. Management is optimistic some of this will be offset by increased earnings from Australia Pacific LNG.

A rebound is expected in FY 2023, with management guiding to Energy Markets underlying EBITDA of $600 million to $850 million. This is subject to current forward commodity prices continuing and a flow through into customer tariffs.

Origin’s CEO, Frank Calabria, said: “As previously outlined, the Energy Markets business faces significant headwinds in FY2022, though fortunately this is expected to be largely offset by higher earnings from Integrated Gas, demonstrating the benefits of Origin’s diversified business. Origin’s net cash flow from Australia Pacific LNG in FY2022 is expected to be more than $1 billion as it benefits from a higher realised oil price.”

“FY2022 presents challenges for the Energy Markets business, and we are responding by targeting significant capital and operating cost savings, including from the introduction of the Kraken platform and new low cost and more efficient retail operating model, with customer migrations to the new platform continuing to progress very well,” he added.

“The outlook for the business improves from next year, with Origin expecting to see a material rebound in Energy Markets earnings, based on the commodity price outlook and supported by disciplined cost management,” Mr Calabria concluded.

The Origin share price is down 27% over the last 12 months.

The post Origin (ASX:ORG) share price crashes 8% on $2.2bn charge and FY 2022 guidance appeared first on The Motley Fool Australia.

More reading

• Should you buy Origin Energy (ASX:ORG) shares in July 2021 for the 5% dividend yield?
• Why Magellan, Origin, Piedmont Lithium, & WiseTech Global are dropping

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.

from The Motley Fool Australia https://ift.tt/3zO41Nl

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has moved higher over the past 5 years. This comes after the banking giant’s shares dropped to a decade-low caused by the economic fallout from COVID-19. Since then, along with the broader share market, ANZ shares have made a turnaround, recovering during mid-2020 and early 2021 to pre-pandemic levels.

This time 5 years ago, on 30 July 2016, ANZ shares were trading at $25.25. At the time of writing, the ANZ share price is sitting at $27.75, around a 10% increase. While this may seem reasonable, other blue-chip shares such as Fortescue Metals Group Limited (ASX: FMG) and BHP Group Ltd (ASX: BHP) have considerably outperformed ANZ. They have risen 476% and 166%, respectively over the same 5-year period.

Furthermore, many investors consider their investment to have performed well if it delivers an average 10% per annum rate of return or more. And on that basis, some shareholders may be feeling disappointed with the returns of the ANZ share price over the past 5 years.

However, let’s take a look at what sort of returns an ANZ shareholder would have made over 5 years also factoring in the banking giant’s dividends.

ANZ dividend history

Below is a list of ANZ’s previous dividends paid out to shareholders over the past 5 years.

• December 2016 – 80 cents (30% franked)

• July 2017 – 80 cents (30% franked)

• December 2017 – 80 cents (30% franked)

• July 2018 – 80 cents (30% franked)

• December 2018 – 80 cents (30% franked)

• July 2019 – 80 cents (30% franked)

• December 2019 – 80 cents (70% franked at 30%)

• July 2020 – 25 cents (30% franked)

• December 2020 – 35 cents (30% franked)

• July 2021 – 70 cents (30% franked)

What sort of returns would an investor have made?

For argument’s sake, let’s say an investor bought $10,000 worth of ANZ shares 5 years ago. The investor would have received approximately 396 shares (at $25.25 per share). If we take those 396 ANZ shares and multiply them by the current ANZ share price ($27.75), the investor’s holding would be worth only $10,989.00 (396 shares x $27.75) today.

With a paper gain of just $989.00, let’s now factor in the accumulated dividends from July 2016.

When calculating the above dividends, our investor would have received a total of $6.90 for every ANZ share owned. Multiply this by the current holding of 396 shares, and this equates to $2,732.40.

Adding this to the $10,989.00 that is the present value, and the investor would have a total of $13,721.40 ($10,989.00 + $2,732.40).

In essence, this means the investor would actually be 37.2% ahead if they had invested in ANZ shares in July 2016. This figure also does not take into account the benefit of franking credits, which can serve to reduce the amount of tax an investor pays, thereby adding to their overall returns.

ANZ share price snapshot

Looking at a much shorter time frame, the ANZ share price has jumped in the past 12 months, up 50%. In 2021, the company’s shares are also in positive territory, up 22%.

ANZ has a market capitalisation of roughly $79 billion, making it the seventh-largest company on the ASX.

The post The ANZ (ASX:ANZ) share price has only gained 10% in 5 years. But have the dividends paid off? appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX 200 dividend shares with attractive yields
• ANZ (ASX:ANZ) share price dips as bank flags cost of Sydney lockdowns
• What to expect from the ASX 200 during earnings season
• Own ANZ (ASX:ANZ) shares? Here’s what to look for during reporting season
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs

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.

from The Motley Fool Australia https://ift.tt/3BSmj1L

With the Afterpay Ltd (ASX: APT) share price down 14% year-to-date, investors might be looking over at reporting season as the next catalyst for some meaningful price action.

Afterpay has yet to confirm the date of its full year FY21 results announcement.

In the past four years, the company has delivered its results in the last week of August.

What might drive Afterpay shares during reporting season

European expansion

Afterpay went live in Southern Europe on 16 March with merchants in France, Spain and Italy.

The long awaited European launch witnessed the Afterpay share price tip 3.12% higher on the day of the announcement to $111.71.

The company previously cited that these three countries have a combined addressable e-commerce market that exceeds 150 billion euros.

It will be interesting to see the growth trajectory of these new regions and if they can begin to make any meaningful contributions to Afterpay’s operating figures.

Afterpay’s European regulatory licence also enables it to operate in Germany and Portugal.

An update for Asia

Afterpay established an in-region team in Asia back in August 2020 via the acquisition of a Singapore-based company operating in Indonesia.

In its FY20 results presentation, the company cited that it would be “exploring opportunities to leverage Tencent’s network and relationships to expand into new regions in Asia”.

The last time we heard about Asia was in the company’s 1H21 results, where it was described as an “early-stage investment”.

Income margins could pressure the Afterpay share price

The Afterpay share price was under heavy selling pressure the day PayPal revealed that it will not charge any late payment fees for its BNPL service.

In addition, PayPal would offer merchants a lower transaction fee.

The Australian Financial Review (AFR) reported that PayPal will launch its “Pay in 4” service in Australia “at a lower price for merchants than the average 3.9 per cent fee plus 30¢ charged by Afterpay. PayPal’s fee will be 2.6 per cent of the cost of the goods plus 30¢.”

By undercutting Afterpay’s fees, analysts believe this could “put some pressure on Afterpay margins”, according to the AFR.

UK growth

Afterpay’s third quarter update highlighted the UK as its fastest growing region with a 246% increase in underlying sales to $0.5 billion and a 132% increase in active customers to 1.8 million.

In Q3 FY21, UK contributed to approximately 8.77% of the group’s $5.7 billion in underlying sales, up from 3.85% a year ago.

The post Own Afterpay (ASX:APT) shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia.

More reading

• Why the Afterpay (ASX:APT) share price is in the green today
• PayPal (NASDAQ:PYPL) share price falls on profit decline
• Why Afterpay, Nickel Mines, Nitro, & St Barbara shares are sinking
• The Afterpay (ASX:APT) share price is down 16% in a month. Here’s why
• World’s largest fund manager says ASX volatility a great buying opportunity

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. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3faaMBf

The Bubs Australia Ltd (ASX: BUB) share price will be one to watch when trading resumes this morning. That’s after the company released a trading update for the June quarter.

At market close yesterday, shares in the dairy producer were trading for 46 cents – up 4.55%.

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

Why the Bubs share price will be one to watch

In a statement to the ASX, Bubs Australia gave an update on its cash position and activities during the last quarter. Overall, the company experienced a cash outflow of approximately $8.5 million for a total cash position of $27.8 million.

The main contributor to this position was a $3.4 million loss in operating activities and a $5 million investment in the business.

Despite operations producing a net outflow, revenue for the quarter was up 8% on the previous quarter to $12.8 million. It was down 4% on the prior corresponding period (pcp), however. Customer receipts for the quarter was $9 million. Total revenue for FY21 was $46.8 million – a 24% downturn on the pcp.

There are also signs the Chinese market is picking up again. Sales to this customer base were heavily disrupted by the impacts of COVID-19. However, e-commerce sales to China are up 10% on the pcp, including a 15% uptick for infant formula specifically.

Sales to the corporate daigou channel (CDC) are up 166% across the group. Infant formula sales to the CDC are 17 times higher on the pcp.

Total international sales are up 224% on the pcp and 48% on the previous quarter. Bubs Australia previously announced it was moving into the US market. The Bubs share price rocketed 17% on the day of that announcement.

Management commentary

Bubs Australia CEO Kristy Carr said:

Bubs Australia continues to make solid progress on its COVID-19 recovery journey despite what has been a difficult year, reflecting our agility in responding to dynamic market conditions and the strength of our brand promise, delivering increased half-on-half revenue growth, as foreshadowed at our interim results.

The company closed the fiscal year comfortably with continued quarter-on-quarter growth momentum. Domestic sales increased 9 per cent on prior quarter and further market share increases were achieved.

It should be noted while domestic sales were 9% higher on the previous quarter, they were also down 29% on the pcp.

Bubs share price snapshot

Over the past 12 months, the Bubs share price has plummeted 49.5%. The S&P/ASX 200 Index (ASX: XJO) is up 23.4% over the same time. Year-to-date, Bubs shares are down about 23%.

Bubs Australia has a market capitalisation of around $282 million.

The post Bubs (ASX:BUB) share price on watch after releasing quarterly update appeared first on The Motley Fool Australia.

More reading

• Here’s why the Bubs (ASX:BUB) share price is down 4% on Monday
• Top brokers name 3 ASX shares to sell next week
• Why the Bubs (ASX:BUB) share price has gained 28% in a month

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 BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3zK8WyK

The Commonwealth Bank of Australia (ASX: CBA) share price has travelled higher throughout 2021, reflecting stable gains for investors.

However, most ‘mum and dad investors’ put their money towards CBA shares, not for share price growth, but for its dividends.

As the largest company on the ASX, CBA shares are seen as a safe haven to park your spare cash and reap the rewards. Even during the midst of COVID-19, the bank still managed to pay a dividend of 98 cents to shareholders in September 2020.

In fact, CBA increased its dividend payout by over 50% to $1.50 per share earlier this year. This reflected the bank’s optimism in quickly returning to pre-COVID levels following Australia’s economic rebound.

What to expect for the CBA’s upcoming dividend?

CBA’s hotly anticipated full-year financial results aren’t due for another 2 weeks (11 August 2021).

According to Bell Potter, investor expectations are running high with analysts forecasting the bank’s cash net profit to increase. Traditionally, this means that the company’s dividend will also receive a boost when compared against the previous dividend payout.

As such, the final dividend for FY21 is projected to come in at a fully-franked $1.84 per share. When combining this with the fully-franked interim dividend of $1.50 per share, this equates to $3.34 per share for the entire FY 2021 year.

When factoring in the current CBA share price of $99.45, this gives a dividend yield of 3.34% ($3.34 / $99.45).

How is the CBA share price valued?

Two recent broker notes came earlier this month with varying price points ahead of the upcoming company’s FY21 result.

Australia’s largest investment house, Morgans raised its 12-month price target for CBA by 4.1% to $76. Following suit, Bell Potter also increased their outlook on the company’s shares, adding 17% to $105. However, the firm downgraded the bank from “buy” to “hold” based on current valuations.

CBA share price snapshot

Over the past 12 months, CBA shares have accelerated to more than 30%, with year-to-date up 20%. The company’s share price reached a record high of $106.57 last month before some profit-taking took place.

Based on valuation grounds, CBA commands a market capitalisation of roughly $176.4 billion, with over 1.7 billion shares outstanding.

The post Should you buy CBA (ASX:CBA) shares in July 2021 for the dividend yield? appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) share price wobbles amid regulatory confusion over Apple
• CBA (ASX:CBA) share price closes lower as bank warns of shrinking GDP
• CBA (ASX:CBA) share price lower following major regional branch changes
• CBA and Zip were among the most traded ASX shares last week
• Commonwealth Bank (ASX:CBA) has beef with Apple. 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. 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.

from The Motley Fool Australia https://ift.tt/3BYmjgD