Tag: Motley Fool

The PEXA Group Ltd (ASX: PXA) share price has risen nearly 8% to reach a new high of $18.47 since its initial public offering (IPO) on 1 July.

Shares in the online property exchange operator have since retreated to $18.24 at the time of writing, up 3.64% on Friday’s close. For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently 0.14% higher.

Today is the first day PEXA shares can be traded as normal after the company confirmed it has met all the conditions necessary for normal trading. Previously, the PEXA share price was trading on a 3-day deferred basis.

PEXA share price profile and history

PEXA is an electronic conveyancing company with arguably a near-monopoly on the market. That company boasts 80% of all real estate transactions in Australia are conducted through PEXA. And, as the cost of using its service is passed on from its customer base (lawyers and real estate agents) to their clients as a business cost, PEXA is somewhat immune to any potential price-based competition.

Link Administration Holdings Ltd (ASX: LNK) floated PEZA on the ASX with an initial market capitalisation of around $3 billion (now around $3.2 billion at current market price).

Link retains a 42% interest in the company while the Commonwealth Bank of Australia (ASX: CBA) owns 23.9% of shares.

On the day of its IPO, the PEXA share price sank to a low of $16.40 before recovering to end relatively flat. Since then, investors appear to be backing the newly-listed company with its shares on the march upwards.

The post PEXA (ASX:PXA) share price jumps to new heights on first ‘normal’ trading day appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Top brokers name 3 ASX shares to sell next week
• The PEXA (ASX:PXA) share price is sinking 4% after its IPO
• Why the CBA (ASX:CBA) share price pulled back from record highs in June
• ASX 200 down 0.3%: SEEK record high, IGO jumps, Lendlease downgrade

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. 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/3hv7XLo

The Australian Ethical Investment Ltd (ASX: AEF) share price rose as high as $8.64 this morning before retreating to its current price of $7.88, down 4.95% for the session.

This comes after the company this morning announced an earnings guidance for FY21.

What did Australian Ethical announce?

The company advised that its Emerging Companies Fund has outperformed its benchmark, the S&P ASX Industrials Index over the last 12 months.

In today’s statement, Australian Ethical was pleased to reveal that the Emerging Companies Fund returned 51.1% after fees (including performance fees) for wholesale investors in FY21, compared to the benchmark which returned 33%.

Australian Ethical will earn a performance fee of 20% of the Fund’s one-year outperformance over the benchmark.

According to the announcement, this translates to a performance fee of $2.89 million.

The performance fee will result in a material lift in the company’s underlying profit after tax (UPAT), with new guidance between $10.7 million and $11.2 million for FY21. This figure represents a midpoint increase of 18% against the prior corresponding period.

Australian Ethical has 8 managed fund options for retail and wholesale investors. The Emerging Companies fund is classified as the most aggressive option with the highest risk/reward according to the company.

Australian Ethical share price in 2021

The Australian Ethical share price has been a strong performer from both year-to-date and FY21 perspectives, increasing around 60% and 26%, respectively.

Australian Ethical previously upgraded its earnings back on 27 May, where UPAT guidance was upgraded to $8.8 million – $9.3 million for FY21. Despite the positive announcement, the company’s shares would slide 3.37% on the day to $9.45.

By 10 June, Australian Ethical shares would have tumbled 27% to $7.13 since the earnings upgrade announcement.

Despite a rocky start to June, the Australian Ethical share price has bounced off lows and currently trading at $7.88.

The post The Australian Ethical (ASX:AEF) share price lower despite positive earnings guidance appeared first on The Motley Fool Australia.

More reading

• PEXA (ASX:PXA) share price jumps to new heights on first ‘normal’ trading day
• Here’s why the Calix (ASX:CXL) share price is racing 8% higher today
• 3 catalysts that could send PayPal stock higher
• A turning point: Jeff Bezos steps down as Amazon (NASDAQ:AMZN) CEO
• Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher

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 Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. 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/3ypXkk2

The Calix Ltd (ASX: CXL) share price is on the move in late morning trade. This comes after the technology company announced it has partnered up with London-listed RHI Magnesita NV (LON: RHIM).

Headquartered in Vienna, Austria, RHI Magnesita is the world’s largest manufacturer of refractory products. The company develops and produces materials such as steel, copper, glass and plastics that can withstand temperatures of 2,000 degrees.

At the time of writing, Calix shares are fetching for $2.80, up 7.69%.

Calix accelerates plans on CO2 emissions reduction

Today’s strong gain brings Calix shares closer to breaking its all-time high of $2.95 reached last month.

According to its release, Calix advised it has executed a Memorandum of Understanding (MOU) to advance CO2 emissions reduction in the refractory industry.

Together with RHI Magnesita, the MOU will cover the development of a Calix Flash Calciner for use in the production of refractory materials. This will enable CO2 to be captured and separated for either storage or utilisation.

Under the terms, both parties will undertake studies for a simple Front End Engineering Design (FEED) demonstration facility. The commercial-scale plant, if proceeded, would be built at a RHI Magnesita site.

The collaboration between the pair first began in 2019, targeting the reduction of CO2 in the refractory production process.

Calix noted that separating CO2 for storage or reuse is an important step in decarbonising the refractory industry.

Management commentary

RHI Magnesita chief technology officer, Luis Bittencourt commented on the MOU, saying:

We are pleased to be working with Calix on this project, which is a key part of the research and development programme on CO2 emissions reduction that we are carrying out over the next five years.

Together with our partners at Calix, we are seeking to develop new technologies for the capture, storage and utilisation of CO2 that would otherwise be emitted during the refractory production process.

Calix managing director, Phil Hodgson went on to add:

We are delighted to be working with RHI Magnesita, the world’s leading refractory company, on this important opportunity to help decarbonise the refractory industry, as well as looking at strategic opportunities in our high reactivity magnesium oxide businesses.

About the Calix share price

It’s been a positive 12 months for Calix shareholders, with the company’s share price hitting a record high last month. Calix shares have gained more than 260% since this time last year, and are up 150% in 2021 alone.

At today’s price, Calix presides a market capitalisation of roughly $429 million, with 158 million shares on issue.

The post Here’s why the Calix (ASX:CXL) share price is racing 8% higher today appeared first on The Motley Fool Australia.

More reading

• The Calix (ASX:CXL) share price is rising 5% today. Here’s why
• 4 fast-growing ASX small cap shares that you may have overlooked
• The Pilbara Minerals (ASX:PLS) share price is flying 8% higher
• The Pilbara Minerals (ASX: PLS) share price delivered green today

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/3AsfsLD

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.

The accelerating shift toward digital transactions over the past year was a boon for PayPal Holdings (NASDAQ: PYPL). Its value more than doubled in 2020, and in the first half of 2021, its stock has already gained 23%.

The digital payments leader has experienced accelerating revenue growth over the last year. These three catalysts could keep the momentum going and push the stock even higher.

1. PayPal is launching a next-gen digital wallet

PayPal has been investing heavily in technology — $2.6 billion in 2020 alone — to develop new features for its growing base of active users — 392 million at last count. Earlier during the pandemic, those expenditures led to the release of a new QR code tool for contactless checkout at retail stores, and this year, PayPal introduced the ability to pay for purchases with cryptocurrency.

The company has been on a roll lately, and it’s not slowing down.

“We expect to roll out our next-generation digital wallet in Q3,” CEO Dan Schulman said during May’s first-quarter earnings call. He further described it as an “all-in-one personalized app” that will offer customized and unique shopping features, financial services, and new payment experiences.

“Our addressable market continues to significantly expand driven by accelerating secular trends and the proactive steps we are taking to become a full commerce and payments platform,” he said.

2. Crypto comes to Venmo

Venmo is on pace to generate $900 million in revenue this year, and while that’s less than 4% of PayPal’s business, the ability to pay using cryptocurrency via Venmo should be a huge catalyst for the peer-to-peer payments app’s growth heading into 2022.

PayPal launched “Checkout with Crypto” in the PayPal app at the end of March, and gave users the ability to buy, sell, or hold cryptocurrency in Venmo in April. During the Q1 earnings call, Schulman referenced the results of surveys that show 74% of millennials expect to use cryptocurrencies over the next few years in some way. Crypto buying has been a significant growth catalyst for Square‘s Cash app. Now, PayPal could see a similar result.

“About half of crypto users open their app every day,” Schulman said, signaling the impact this could have to turn Venmo into a “super app,” or the only financial app users need. With more than 300,000 business profiles on Venmo, PayPal sees big opportunities to further accelerate adoption of an app that posted $51 billion in payments last quarter — an increase of 63% year over year.

3. Earnings growth is accelerating

What’s most impressive about PayPal’s recent business performance is the improvement in its operating margin. In the first quarter, PayPal’s operating expenses increased at a much lower rate than revenue, which allowed more money to drop down to the bottom line. This was a key factor in its 84% year-over-year rise in adjusted earnings per share.

This isn’t just a temporary trend. PayPal’s transaction expense — the sum of the costs it incurs when a customer makes a payment — has declined as a percentage of total payment volume over the last three years. PayPal has also experienced slower growth in customer support expenses and has made significant headway on reducing credit losses, all of which have lowered its costs and firmed up its profits.

It’s remarkable that PayPal has been able to roll out so many new features — with more on the way — while posting healthy increases in margins and profits.

Schulman believes these trends are sustainable. “[W]e would expect transaction expense to remain at lower levels [than] pre-pandemic, which, again, gives us the just amazing leverage that we have on this platform,” he said. PayPal recently announced plans to raise its processing fees for some U.S. merchants starting in August, which will help it keep its operating margins up, and its earnings per share growing.

Why the stock is a buy

Analysts expect PayPal to report steady growth in operating margins over the next two years. And current estimates have PayPal posting EPS growth of 21.9% in 2021, 24.3% in 2022, and 24.6% by 2023.

Many tech companies sacrifice profitability to invest in growth initiatives, but not PayPal. That’s why this fintech stock is still a great buy as it inches toward new highs.

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

The post 3 catalysts that could send PayPal stock higher appeared first on The Motley Fool Australia.

More reading

• This ethical ASX ETF has doubled the ASX 200 in 2021 so far
• Why PayPal raised its processing fees — and why it could backfire
• Are Zip (ASX:Z1P) shares cheap enough to buy now?
• PayPal taking fight to Afterpay (ASX:APT) and ASX banks

John Ballard 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 PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. 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/3dG1ufG

The Caspin Resources Ltd (ASX: CPN) share price is plummeting lower this morning despite the company confirming primary sulphide platinum group elements mineralisation at its Yarawindah Brook Project.

Shares in Caspin are currently swapping hands for $1.10. That’s 43.59% less than they were trading for at market close on Friday.

The exploration company has an 80% interest in the Yarawindah Brook Project, located 100 kilometres northeast of Perth.

Let’s take a look at the news driving the Caspin share price today.

Assay results from Yarawindah Brook Project

The assay results released today are from drill holes at the project’s Yarabrook Hill and XC-29 prospects.

Drill holes at the Yarabrook prospect returned broad zones of anomalous platinum group element mineralisation. They also contained narrow intercepts of palladium, platinum, nickel, and copper. Some of the better assay results include:

• 4.4 metres at 0.78 grams of platinum group elements per tonne (0.52 grams of palladium per tonne, 0.26 grams of platinum per tonne), 0.43% nickel and 1.00% copper from only 66.2 metres
  • including 0.65 metres at 1.93 grams of platinum group elements per tonne (1.11 grams of palladium per tonne, 0.82 grams of platinum per tonne), 1.46% nickel and 1.60% copper from 67.75 metres.
• 0.2 metres at 4.17 grams of platinum group elements per tonne (0.95 grams of palladium per tonne, 3.22 grams of platinum per tonne), 3.49% nickel and 1.43% copper from 155.97 metres.
•  9.2 metres at 0.74 grams of platinum group elements per tonne (0.35 grams of palladium per tonne, 0.39 grams of platinum per tonne), 0.19% nickel and 0.24% copper from 300.85 metres,
  • including 0.7 meters at 4.10 grams of platinum group elements per tonne (0.77 grams of palladium per tonne, 3.33 grams of platinum per tonne), 0.56% nickel and 2.01% copper from 308.5 metres.

According to the company, some mineralisation at the Yarabrook prospect increased downhole. Caspin believes the downhole mineralisation defines a stratigraphic horizon that it plans to focus on in follow-up explorations.

At the XC-29 prospect, drill holes returned anomalous levels of platinum group elements, as well as nickel and copper.

Caspin’s next drilling program is set to begin in the coming weeks. It will involve 5,000 metres of reverse circulation drilling.

The company believes its ability to vector towards platinum group element-rich zones will increase as its exploration program continues.

Commentary from management

Caspin’s CEO Greg Miles commented on the results:

This is clearly the most advanced exploration prospect in the region outside Chalice Mining’s Gonneville Intrusion, with demonstrated basement platinum group element mineralisation and it’s still largely unexplored. It’s a fantastic opportunity.

Caspin Resources share price snapshot

Despite today’s tumble, the Caspin share price is having a good year on the ASX.

Right now, it’s 103% higher than it was at the beginning of 2021. It’s also gained 139% since this time last year.

The company has a market capitalisation of around $66 million, with approximately 64 million shares outstanding.

The post The Caspin Resources (ASX:CPN) share price tumbles 43% appeared first on The Motley Fool Australia.

More reading

• 3 catalysts that could send PayPal stock higher
• A turning point: Jeff Bezos steps down as Amazon (NASDAQ:AMZN) CEO
• Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher
• Why the BetMakers (ASX:BET) share price is up 5% at lunchtime
• Sydney Airport (ASX:SYD) jumps 37% on $22.6 billion buyout bid

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/3qNc8Xl

Well, today is a rather remarkable day in the history of capitalism. Jeff Bezos, founder and CEO of Amazon.com, Inc. (NASDAQ: AMZN) is about to step down as CEO of the company he founded back in 1994. He first announced his resignation back in February.

The end of Mr Bezos’ stewardship of Amazon, now one of the largest companies in the world, marks a turning point for the man. Amazon has made Bezos the richest person in the world, and by quite a mile. Today, according to Forbes, his net wealth stands at almost US$202 billion. That’s well in front of his next competitor in Bernard Arnault at US$189 billion, as well as from Tesla Inc (NASDAQ: TSLA) CEO Elon Musk at US$167 billion. Musk briefly overtook Bezos as ‘world’s richest person’ last year amid a soaring Tesla stock price.

But Bezos has since claimed back the mantle, and leaves Amazon back on the top of the global wealth pile. And that’s despite a highly-publicised divorce last year which saw his now ex-wife Mackenzie receive a quarter of Bezos’ Amazon shares. Bezos first became a billionaire in 1998, which Forbes points out was a year that saw an average Amazon share price of US$7.47. Today, those same Amazon shares are worth US$3,511 apiece.

So what now for Bezos and Amazon?

So what is Bezos up to now, since he is leaving running his ‘baby’? And who is in charge at Amazon now? After all, an Aussie who was born in the same year as Amazon entered this world would be 27 years old today. So this is quite a change. So here’s what Bezos said when he initially announced his resignation as Amazon CEO back in February:

Amazon is what it is because of invention. We do crazy things together and then make them normal… If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive. When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention. Right now I see Amazon at its most inventive ever, making it an optimal time for this transition.

But Bezos is not leaving Amazon entirely. He is “transitioning” to the role of Executive Chair, a role with undoubtedly less ‘hands-on’ responsibility at the company, but still an important role nonetheless. His replacement as Amazon CEO is Andy Jassy, who, until now, was the chief executive of the company’s Amazon Web Services (AWS) division.

So what’s Bezos up to now? Well, according to Forbes, Bezos is now turning his time to his charities in the Bezos Day One Fund and the Bezos Earth Fund. He is also expected to be working at his other company – hopeful space explorer Blue Origin. In a tight race with Virgin founder Sir Richard Branson, Bezos is expected to go to space himself on 20 July. Perhaps his ambitions have exceeded what Earth, or Amazon, can offer him.

The post A turning point: Jeff Bezos steps down as Amazon (NASDAQ:AMZN) CEO appeared first on The Motley Fool Australia.

More reading

• Amazon’s biggest threat in e-commerce
• Wondering which US shares Aussies bought last quarter? Here’s the answer
• FANG+ ETF (ASX:FANG) tumbles 10% on ex-dividend day
• Tesla back on top as the most popular US share for ASX investors
• Facebook (NASDAQ:FB) joins US$1 trillion club as share price leaps

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon and Tesla. 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 Amazon. 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/2TslHib

The S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a slightly positive note. In early afternoon trade, the benchmark index is up 0.1% to 7,316.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up over 3% to $6.73. This follows news that the New Zealand Overseas Investment Office has issued its consent to the company’s proposed acquisition of a 75% interest in Mataura Valley Milk. Management expects the acquisition of the dairy nutrition business to provide A2 Milk with the opportunity to participate in nutritional products manufacturing and give it supplier and geographic diversification. It also expects the deal to strengthen its relationship with key partners in China.

Airtasker Ltd (ASX: ART)

The Airtasker share price is up 4% to $1.16. Investors have been buying the shares of the online marketplace for local services after it released a guidance update. According to the release, Airtasker achieved Gross Marketplace Volume (GMV) of $39.4 million in the fourth quarter. This represents a 39.1% increase compared to the prior corresponding period. In light of this strong quarterly performance, management expects to report GMV of $153.1 million for the full year. This exceeds both its prospectus forecast of $143.7 million and April’s upgraded guidance of $148 million to $152 million.

BetMakers Technology Group Ltd (ASX: BET)

The BetMakers share price has jumped 5% to $1.10. This follows news that Tabcorp Holdings Limited (ASX: TAH) intends to demerge its lotteries and Keno business. This will see two separate ASX-listed companies – Tabcorp and Lotteries & KenoCo. The former will retain its wagering, media, and gaming services businesses. The BetMakers share price had come under significant pressure since announcing a takeover offer for Tabcorp’s wagering and media assets. Investors appear relieved the deal will no longer go ahead.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The Sydney Airport share price has rocketed 30% higher to $7.55. Investors have been scrambling to buy the airport operator’s shares after it received an $8.25 cash per share takeover offer from a consortium of infrastructure investors. This represents a 42% premium to its last close price. Sydney Airport is assessing the offer but notes that it has been made during a global pandemic, which has deeply affected the aviation industry and the Sydney Airport share price.

The post Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Why the BetMakers (ASX:BET) share price is up 5% at lunchtime
• Sydney Airport (ASX:SYD) jumps 37% on $22.6 billion buyout bid
• ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps
• Tabcorp (ASX:TAH) share price drops on demerger news
• Airtasker (ASX:ART) share price storms 5% higher after smashing FY 21 guidance

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 Betmakers Technology Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended A2 Milk and Betmakers Technology Group Ltd. 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/3jIyJCL

The BetMakers Technology Group Ltd (ASX: BET) share price opened 11.48% higher this morning to an intraday high of $1.165.

At the time of writing, shares in the betting technology company have pulled back to a gain of 5.26% or $1.10.

This follows an announcement out of Tabcorp Holdings Ltd (ASX: TAH), with intentions to demerge its lotteries and wagering businesses.

BetMakers released a subsequent response to the market outlining its plans moving forward.

What’s driving the BetMakers share price?

Back in late May, BetMakers submitted a proposal to acquire Tabcorp’s Wagering and Media business for an enterprise value of $4 billion.

Today, Tabcorp has decided to pursue a demerger of its lotteries and wagering business, instead of BetMakers’ acquisition proposal.

This move will see Tabcorp spin off its lotteries and wagering businesses into two standalone, ASX-listed companies with “distinct operating profiles, strategies and growth opportunities”.

With BetMakers’ acquisition plans coming to an end, this means the company has avoided the need to raise $4 billion to acquire Tabcorp assets.

The $4 billion would have otherwise come from $1 billion through debt financing and $3 billion worth of new BetMakers shares.

Pleasingly, BetMakers advised that it will continue discussions with Tabcorp regarding “commercial opportunities in international markets”.

In addition, BetMakers said that its “international growth plans have accelerated in recent weeks” underpinned by announcements including the progression of Fixed Odds betting in New Jersey and the completion of its Sportech acquisition.

What did management say?

In response to the announcement, BetMakers CEO Todd Buckingham said:

Having received clarity from Tabcorp regarding the planned direction for its Wagering and Media business, BetMakers will continue discussions with Tabcorp regarding international opportunities, and we believe these opportunities have the potential to be significant.

BetMakers remains firmly of the view that the Company’s opportunities in regulated wagering jurisdictions, and in particular Australia and the United States, are a clear priority and we will continue to explore all opportunities that can accelerate or capitalise on this foundation.

BetMakers share price snapshot

BetMakers’ ambitious offer to acquire Tabcorp assets took a significant toll on its share price, tumbling 34.5% to a low of $1.01 between 28 May and 7 June.

With the deal no longer progressing, the BetMakers share price is still down 30.6% from its record close of $1.60 on 27 May.

The post Why the BetMakers (ASX:BET) share price is up 5% at lunchtime appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher
• ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps
• Tabcorp (ASX:TAH) share price drops on demerger news
• BetMakers (ASX:BET) builds out tech with more acquisitions
• BetMakers (ASX:BET) share price lifts on wagering milestone

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 Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. 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/3dGAVGU

The Sydney Airport (ASX: SYD) share price is rocketing this morning after the company announced that a consortium of infrastructure investors had proposed a $22.6 billion all-cash transaction for the buyout of Sydney Airport.

The Sydney Airport share price has started this morning’s session with a 37% jump into the green after the opening bell, before retreating slightly to the current price of $7.71, up 32.62%.

Let’s dive into what unfolded this morning.

What is the proposed deal?

In today’s release, the company advised that a consortium of infrastructure-focused investors from IFM Investors, Global Infrastructure Management and QSuper had offered $8.25 per share for a buyout of the famed Australian airport.

At these figures, the offer price represents a 42% premium on Sydney Airport’s closing price of $5.81 at the bell on Friday.

Sydney Airport also holds debt valued at close to $10 billion on its balance sheet — which the consortium must absorb — taking the company’s enterprise value to $30 billion and change.

The investor consortium mentioned its deal included a number of conditions. These included:

• UniSuper to reinvest its roughly 15% stake into the holding vehicle;
• Sydney Airport to provide access to the company books;
• A unanimous recommendation from the Sydney Airport boards that securityholders back the proposal; and
• Entry into a mutually acceptable scheme implementation deed between Sydney Airport and a company owned by the consortium members.

A move to proceed with the sale would align Sydney Airport with Australia’s other major airport operators, which are owned by consortiums of infrastructure investors.

What did Sydney Airport say?

Sydney Airport was quick to respond, claiming that the offer sat below its pre-pandemic share ranges when it hit a record high of $8.86 back in January 2020, before the COVID-19 pandemic took its toll on global travel.

In a release, it stated:

The boards are undertaking detailed analysis of, amongst other things, whether the proposal is reflective of the underlying value of the airport given its long-term remaining concession and the unexpected short-term impact of the pandemic.

At the time of writing, Sydney Airport is considering the proposal.

Sydney Airport share price snapshot

Today’s price action has catapulted the Sydney Airport share price into the green after closing in the red over the previous 5 days. Shares in the airport are now up 40.29% over the past 12 months and have lifted 20.44% year-to-date.

At a share price of $7.73, Sydney Airport has a market capitalisation of $15.7 billion and trades at a price-to-earnings ratio of 92.

The share price is trading near its 52-week high of $8.04, and has a 52-week range of $4.99 – $8.04.

The post Sydney Airport (ASX:SYD) jumps 37% on $22.6 billion buyout bid appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Broker names 2 ASX dividend shares to buy
• 3 worst ASX travel shares of financial year 2021
• Temple & Webster share price surges with other ASX COVID winners

Zach Bristow 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/36f91h6

At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small gain. The benchmark index is currently up 0.1% to 7,314.4 points.

Here’s what is happening on the market today:

Sydney Airport receives takeover approach

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is rocketing higher today after receiving a takeover approach. The airport operator has received an unsolicited, indicative, conditional and non-binding proposal from a consortium of infrastructure investors to acquire it for $8.25 cash per share. Sydney Airport is assessing the offer but notes that it has been made during a global pandemic, which has deeply affected the aviation industry and the Sydney Airport share price. This offer represents a 42% premium to its last close price.

Tabcorp demerger

The Tabcorp Holdings Limited (ASX: TAH) share price is sinking on Monday after revealing plans to demerge its lotteries and Keno business. This will see two separate ASX-listed companies – Tabcorp and Lotteries & KenoCo. The former will retain its wagering, media, and gaming services businesses. This brings to an end the takeover approach by Betmakers Technology Group Ltd (ASX: BET).

A2 Milk receives acquisition approval

The A2 Milk Company Ltd (ASX: A2M) share price is charging higher today after providing the market with an update on its proposed acquisition of a 75% interest in Mataura Valley Milk. According to the release, the New Zealand Overseas Investment Office has issued its consent to the company’s proposed acquisition of the dairy nutrition business. As a result, completion of the transaction is now to set to occur with effect from the end of July.

Best and worst ASX 200 performers

The best performer on the ASX 200 by some distance is the Sydney Airport share price with a 30% gain. This follows the receipt of the aforementioned takeover approach this morning. The worst performer has been the Tabcorp share price following the announcement of its demerger plans. Its shares are down 5% at the time of writing.

The post ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps appeared first on The Motley Fool Australia.

More reading

• Tabcorp (ASX:TAH) share price drops on demerger news
• A2 Milk (ASX:A2M) share price on watch after acquisition update
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• 5 things to watch on the ASX 200 on Monday
• Why the Telstra (ASX:TLS) share price outlook suddenly improved last week

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 recommended A2 Milk. 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/3qPNvt4