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The S&P/ASX 200 Index (ASX: XJO) fell 0.3% today to 7,270 points.

Here are some of the highlights from the ASX:

Brickworks Limited (ASX: BKW)

The Brickworks share price went up more than 10% today after announcing a revaluation profit within it is joint venture industrial property trust. Brickworks’ share is expected to be around $100 million. This is expected to contribute to record underlying earnings before interest and tax (EBIT) of between $240 million to $260 million for FY21, up from $129 million in FY20.

Brickworks also said that its building products divisions in Australia and North America are both expected to record higher EBIT in FY21 in local currency returns. The ASX 200 share is benefiting from a rapid re-opening of the economy across the US, though there’s still uncertainty such as the newly imposed lockdowns in Melbourne.

The Brickworks managing director Mr Lindsay Partridge said:

Since the end of the first half, there has been a number of significant industrial property transactions in western Sydney. The pricing of these transactions has reinforced the strong investor appetite for prime industrial property assets.

Given the number of sales and the steep movement in transaction pricing, an independent valuation of our property trust assets has been completed, and this process has resulted in further compression of capitalisation rates across our portfolio. As such, a revaluation profit of around $100 million will be recorded in the second half, representing Brickworks’ 50% share of the valuation gain.

In addition, property earnings are expected to be boosted further by the completion of developments at Oakdale East, current forecast to occur in July.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price dropped around 2% today after a report into its Darwin Dan Murphy’s store.

According to reporting by the Australian Financial Review, Woolworths has said it will fix its corporate governance and strengthen its engagement with stakeholders before it opens new stores after an independent review.

That review, which was done by Gilbert+Tobin managing partner Danny Gilbert, said Australia’s largest retailer had “failed to take into account the challenges facing Aboriginal communities in the Northern Territory, put profits above public interest, lobbied the NT government for law changes that led to fair processes being ignored, and did not meet the standards expected of a leading corporate citizen when it pursued plans to open the store in the face of overwhelming community opposition.”

The proposed Dan Murphy’s was 10 times larger than the ASX 200 share’s existing BWS store in Darwin.

Woolworths CEO Brand Banducci, according to the AFR, said:

I’d like to apologise…for us not actively listening as much as we should have. Where we need to materially change our governance is how we empower our First Nations team members and our advisory board to have a lot more carriage in terms of their mandate to give us advice. Our commitment is to reflect, to engage and do a much better job of taking First Nations issues into consideration in all our actions going forward. The buck stops with me…I’ve learnt a lot.

Afterpay Ltd (ASX: APT)

The buy now, pay later business was also in the news today.

According to reporting by the Australian Financial Review, the broker UBS thinks that Afterpay’s growth rate in Australia is going to fall a lot later this year as it reaches maturity in its first market.

The broker continues to think that the ASX 200 BNPL business is going to attract more attention from the Reserve Bank of Australia as merchants pay around eight times more than debit cards.

UBS thinks that the Afterpay share price is too high because of rising competition, regulation and uncertainty of the execution of growth plans, as well the high Afterpay valuation. 

The post ASX 200 drops, Brickworks soars, Woolworths falls appeared first on The Motley Fool Australia.

More reading

• The Brickworks (ASX:BKW) share price hit an all-time high today. Here’s why
• Woolworths (ASX:WOW) under fire over Darwin Dan Murphy’s store
• Thomson Resources (ASX:TMZ) share price surges on exploration results
• Why Brickworks, Ecofibre, Frontier Digital, & Ramsay are storming higher
• Why Altium, Appen, National Storage, & Woolworths are tumbling lower

Motley Fool contributor Tristan Harrison 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, Brickworks, and Woolworths 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 Resolute Mining Limited (ASX: RSG) share price finished the day in the red. This comes after the gold miner provided an update on its revolving credit facility (RCF).

At the closing bell, Resolute shares finished the afternoon at 53 cents, down 2.75%.

What did Resolute announce?

In its statement to the ASX, Resolute advised it has made an early debt repayment of US$20 million. The voluntary repayment was ahead of the first schedule debt instalment and reduces the RCF balance to US$130 million.

The early repayment will have a positive impact on Resolute’s balance sheet, with the company incurring lower interest costs.

Resolute says the $150 million RCF threshold provides management more room to pursue growth opportunities. The remaining US$130 million is not due until March 2023, giving the company plenty of time to service the loan.

In addition, Resolute also has a term loan facility with the first scheduled repayment of US$25 million in September 2021. The company noted it intends to pay the bi-annual instalments of US$25 million, concluding March 2024, with its operating cash flows. Further free cash flows to clear the debt could also be applied in future.

Resolute CEO Stuart Gale commented:

This early repayment strengthens Resolute’s balance sheet and reduces ongoing borrowing costs. Our teams remain focused on improving operational performance and, with that, cash generation. The flexibility of the RCF then provides us with the option to continue repaying debt ahead of maturities with operating cash flow and proceeds from potential non-core asset sales.

Resolute Mining share price review

Resolute shares have lost close to 50% of their value in the past 12 months. Year to date, the share price hasn’t fared much better, down by roughly 33%.

On a positive note though, the gold spot price has begun to regain ground, sitting at US$1,892 per ounce. The gold spot price reached a 52-week high of US$2,070 per ounce in August last year.

Based on valuation metrics, Resolute commands a market capitalisation of about $585 million, with around 1.1 billion shares outstanding.

The post Resolute Mining (ASX:RSG) share price dips on debt update appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted shares on the ASX
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• Why the Resolute Mining (ASX:RSG) share price zoomed 26% higher in May
• These were the best performing ASX 200 shares in May
• ASX gold miners are going gangbusters on the ASX 200 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.

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After years of teasing an initial public offering (IPO), the US brokerage company Robinhood Markets, Inc. might finally be going public as early as next month.

What is Robinhood?

It’s one of the most popular brokerage platforms over in the US, especially amongst younger Millennial and Gen-Z investors, with its services delivered online and via mobile app.

Robinhood was founded in 2013 by two college roommates, Vlad Tenev and Baiju Bhatt. Robinhood basically invented the practice of zero brokerage that is now ubiquitous in US markets. Over the years, it has expanded into options trading, banking and cryptocurrency trading. 

Its central mission is to “democratise finance for all”. Prior to Robinhood’s entry into the brokering game, most US brokers charged a fee for share transactions – something we Aussie investors are still very familiar with.

It quickly took off and has remained at the vanguard of share trading ever since. Indeed, most US investors can probably thank Robinhood for pushing the entire industry towards a zero-brokerage model. Whether that’s a good thing, on the whole, is still a divisive issue. But that’s a debate for another time.

According to Forbes, Robinhood had more than 13 million users at the end of 2020. Another 6 million reportedly joined up in the first two months of 2021. Forbes also tells us that this has helped Robinhood’s valuation on the private markets jump from US$20 billion at the end of 2020 to more than US$40 billion by February 2021.

Not without controversy…

Robinhood has been described as helping to ‘gamify investing’ or encouraging gambling-like behaviour among users.

During the GameStop (NYSE: GME) short squeeze saga earlier this year, it drew much criticism for banning the trading of GameStop shares for a short time when the squeeze was in full swing.

It also attracted controversy last year when investors exploited a glitch in its systems that allowed them to trade on infinite margins (i.e. borrowing unlimited amounts of money to invest in shares).

So, when will Robinhood IPO?

Robinhood’s IPO has been in the works for a while now, but a report in today’s Australian Financial Review (AFR) has suggested it could IPO next month.

Robinhood filed an IPO allocation in March and had planned a June listing. According to the report, the company is now eyeing the period following the 4 July public holiday in the US but a “final decision hasn’t been made”.

So, we’ll have to wait until next month to see if Robinhood will finally join the share market in what could be one of the year’s biggest IPOs. Watch this space!

The post Will Robinhood be the biggest IPO on global markets in 2021? appeared first on The Motley Fool Australia.

More reading

• Marley Spoon (ASX:MMM) share price jumps 9% following $20b sector forecast
• The Brickworks (ASX:BKW) share price hit an all-time high today. Here’s why
• Woolworths (ASX:WOW) under fire over Darwin Dan Murphy’s store
• Patience, grasshopper
• Thomson Resources (ASX:TMZ) share price surges on exploration results

Motley Fool contributor Sebastian Bowen 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 Marley Spoon AG (ASX: MMM) share price rallied today despite no announcements from the company. Potentially, investors might be absorbing a recent research report that forecasts a peachy future for the global meal kit delivery market.

The German-based meal kit company’s shares finished the session 8.98% higher at $2.67.

Marley Spoon shares lift amid beefed-up estimates

Despite market research and consulting company Renub Research publishing its analysis of the meal kit market late last month, the forecasts have been widely shared across financial news over the past couple of days. The report, titled ‘Meal Kit Market Global Forecast by Country, Type, Ordering Method (Online, Offline), Category (Vegetarian, Non-Vegetarian), Company Analysis’, offered a deep dive into the industry.

The crux of Renub’s analysis is that COVID-19 has provided a substantial tailwind for the meal kit industry. With restaurants and some supermarkets forced to close, consumers have been increasingly turning to delivered meal kits to satisfy their culinary desires.

In essence, the report outlines an expectation the convenience phenomena in meal preparation will continue to grow. It found the global meal kit market was estimated to be worth US$8.4 billion in 2020. However, this is forecast to reach US$20.1 billion by 2027.

Those estimates certainly look appealing for companies operating within the space. An expanding market means greater potential for revenue growth. This must be music to the ears of shareholders.

Meal kit roundup

Marley Spoon isn’t the only company looking to take advantage of this potentially growing trend. Other dominant competitors in the industry include internationally listed companies HelloFresh and Blue Apron Holdings Inc.

HelloFresh recorded more than 1.3 million shoppers in the first few months of lockdowns. According to Similarweb, HelloFresh received a total of 9.81 million website visits in May. Marley Spoon, on the other hand, recorded 1.04 million visits.

For reference, the ASX-listed Marley Spoon has a market capitalisation that’s roughly 3% of HelloFresh’s. However, that hasn’t stopped the Marley Spoon share price from soaring 147% in the past 12 months.

The post Marley Spoon (ASX:MMM) share price jumps 9% following $20b sector forecast appeared first on The Motley Fool Australia.

More reading

• The Brickworks (ASX:BKW) share price hit an all-time high today. Here’s why
• Woolworths (ASX:WOW) under fire over Darwin Dan Murphy’s store
• Patience, grasshopper
• Thomson Resources (ASX:TMZ) share price surges on exploration results
• Why the QuickFee (ASX:QFE) share price jumped higher today

Motley Fool contributor Mitchell Lawler 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 Brickworks Limited (ASX: BKW) share price was on fire today. Brickworks shares managed to climb a hefty 11.32% today to close at $23.40 a share. During intra-day trading, Brickworks shares hit a high of $23.54. That’s both a new 52-week and all-time high for the company.

Why are the shares at an all-time high?

As we covered this morning, today’s share price rise seems to be a response to the company’s trading update that it released to investors before market open today. In this release, Brickworks informed the market that it has enjoyed a $100 million boost to its profits as the result of a revaluation of some of its property assets.

As a result, the company is now expecting to bring in a record $240 million to $260 million in earnings before interest and tax (EBIT) from its property portfolio in FY2021. That’s up from $129 million a year ago.

About the Brickworks share price

Brickworks is a building materials company at its core, but (as you may have gathered) it also has a large portfolio of land assets that it derives income from as well. The company has a large presence in the Australian building materials market and has been expanding into the US markets in recent years as well. In addition to these two income streams, the company also has another large asset on its books – a significant shareholding of 39.4% in Washington H. Soul Pattinson & Co. Ltd (ASX: SOL). In turn, Soul Patts also has a commensurate stake in Brickworks shares.

Today’s share price move has capped off what has been a threat year for the company. Brickworks shares are now up 11.4% in the past month, 19.7% year to date in 2021, and up 45.7% in the past 12 months. At the current share price, Brickworks has a market capitalisation of $3.53 billion and a price-to-earnings (P/E) ratio of 11.2. Brickworks is also well known for its track record of delivering steady or rising dividends every year for more than four decades. It currently has a trailing dividend yield of 2.57%.

The post The Brickworks (ASX:BKW) share price hit an all-time high today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why Brickworks, Ecofibre, Frontier Digital, & Ramsay are storming higher
• Brickworks (ASX:BKW) share price jumps 8% on record property earnings
• 3 reasons why Soul Patts (ASX:SOL) can be a good ASX dividend share
• 3 ASX shares that keep growing their dividends every year
• 2 ASX shares that could keep growing the dividend every year

Motley Fool contributor Sebastian Bowen owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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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An independent review into Woolworths Group Ltd (ASX: WOW)’s proposed Dan Murphy’s liquor store in Darwin has criticised the company over a lack of consultation and consideration of social impact.

According to a report in today’s The Age, Woolworths’ Endeavour Group business had proposed building the large bottleshop in a location in Darwin. This was reported to be within walking distance of three dry Aboriginal communities, including the biggest in Darwin.

Today, Woolworths has released the 144-page independent report into this proposal. This was conducted by Gilbert + Tobin managing partner Danny Gilbert. It considered both Woolworths’ decisions and level of consultation over the proposed project.

The report was actually completed earlier this year and was one of the reasons the company decided to abandon the plan back in April. However, the report has only just been released publicly by Woolworths.

Woolworths under fire

It outlined a number of “failings” by the company. The report alleged that Woolworths had a “seemingly single-minded determination” to build the site regardless of significant local opposition.

It also stated that commercial considerations seemingly trumped any other considerations. These included the stores’ social impact on its surrounding community. As well as the possible damage to the Woolworths brand. These considerations were reportedly not even considered until mid-2020 — a good four years after Woolworths initiated the project.

Here’s some of what the report stated:

[Woolworths] failed to give sufficient reflective consideration to First Nations people of Darwin and the Northern Territory with respect to their socio-economic status, their histories and their struggles to overcome disempowerment and disadvantage… More fundamentally, it failed to sufficiently understand that many Aboriginal and Torres Strait Islander peoples view alcohol as nothing short of a demon that leaves destruction in its wake.

It also stated that had the site gone ahead, it would have been, “another nail in the coffin of Aboriginal and Torres Strait Islander peoples distressed and dying from alcohol abuse”.

According to the report, Woolworths chair Gordon Cairns, CEO Brad Banducci and sustainability committee head Holly Kramer have come out and stated that Woolworths had “clearly failed” to meet expectations over the project. They have pledged to make changes at the company going forward.

These changes will include executives committing to a number of “wide-ranging and personal” meetings with Aboriginal and Torres Strait Islander communities around the country. Woolworths will also appoint an executive to oversee decisions around First Nations issues.

About the Woolworths share price

The Woolworths share price closed the day down 1.89% at $42.63.

Even so, the company is up 5.26% over the past month, and up 6.55% year to date. The current share price gives Woolworths a market capitalisation of just over $54 billion.

The post Woolworths (ASX:WOW) under fire over Darwin Dan Murphy’s store appeared first on The Motley Fool Australia.

More reading

• Why Altium, Appen, National Storage, & Woolworths are tumbling lower
• ASX 200 Weekly Wrap: ASX hits 7,300 points for the first time
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Woolworths 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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I want to tell you the story of a company.

Well, a company’s share price, actually.

(I could have said ‘the story of a stock’, but our monkey brains do better being reminded that it’s a real company, rather than letting it take the shortcut to a three-letter ticker code and a share price chart.)

This company’s shares are down 3% as I type this.

Here’s the story of the share price, by year:

In 2015, the shares went up 8%

In 2016, they fell 11%.

A good year in 2017, with the share price rising 45%.

In 2018, shares rose 7%.

Overall, pretty decent.

A 50% rise in 4 years. Around 11% per year, compounded.

About average, at market level.

Here’s some more information, though: during those four years, the shares lost at least a third of their value on three different occasions.

Many investors would have actually lost money, had they bought at certain times during 2017 and 2018.

And if you’d bought in 2015, at a peak, you made barely 20% over the following 3.5 years.

Not a loss, but not much gain for your trouble.

Remember: Timeframes matter when looking at share price returns. And they can be fickle.

Here’s what the share price chart looked like (courtesy of Yahoo Finance):

Overall, the company’s returns were okay. Decent. Reasonable.

If you’d held for the full four years.

If you’d bought it at the wrong time, they were disappointing. Loss-making even.

A dud investment.

You’d be excused for wanting to sell.

Many people did.

After all, the trend is your friend, right?

No-one wants losers in their portfolio, right?

We want shares that are going somewhere.

Doing something.

Making money for us.

So let’s extend the lens.

But, well, rather than write about it, let me show you, first.

As you might see in the top left corner of the chart, the company is Tesla Inc (NASDAQ: TSLA).

The shares, in mid-2021, are up 10-fold on their December 2018 price.

And that’s the case even though shares are down more than 30% from their highs, earlier this year.

Now, I’m no Tesla bull. I’m not a bear, either.

It sits squarely in my ‘too hard’ pile.

And yes, this is a story told with the full benefit of hindsight.

Not only that but there are companies whose share prices fall and never recover.

The world of investing, unfortunately, doesn’t offer perfect information — or easy wins.

Instead, this go-go stock is a reminder of some old-world principles that remain true.

First: Share prices are a result of sentiment in the short term, not business fundamentals

Second: Sentiment can change on a dime. Then change back again. And again. And again.

Third: The market should be your servant, not your master. Don’t let it tell you what to think.

Fourth: The corollary: Sometimes, the market is right. Don’t let arrogance blind you to reality.

Fifth: Just as 2015  – 2018 was an arbitrary time period, so are the last 5 years. So is today. No company has reached its ‘final’ share price today, June 9, 2021. The end of the story hasn’t been written, so don’t rest on your laurels, or wallow in your pity.

Remember, Dick Smith shares fell and kept falling.

So — thus far at least — have AMP Ltd (ASX: AMP)’s.

Tesla’s has gone up — a lot — over 5 years, but is down in 2021.

Sometimes, we’ll be right. Sometimes we’ll be wrong. No investor gets to hand in a clean sheet.

If I was a betting man, I’d guess Tesla’s share price remains volatile.

And, in the fullness of time, will reflect the company’s ability to sell an ever-larger number of cars (and batteries and solar panels) at the prevailing margin.

Let’s widen the lens:

Was the market right in March 2020, as it rang in a 38% fall in just over a month.

Nope.

(And that’s not ‘Monday morning quarterbacking’ — I said so at the time.)

Is it right now? 

That’s a harder question.

And not just from the ‘doom-and-gloom brigade who (always) think a crash is around the corner.

Maybe it crashes.

Maybe it goes up another 25% in 2021.

Or — more likely — somewhere in between.

I hope my Tesla example has shown you the better path.

Your job, as an investor, is not to guess whether we’re at a top.

It’s not to guess whether it’s going up, or down, over the next day, week, month or even year.

It’s to look at businesses and decide whether today’s price is attractive, relative to the long term potential of the company itself.

If you bought Tesla shares at $77 in mid-2017, you were feeling pretty glum when they were selling for $60 on Christmas Eve in 2018.

But if you’d held your nerve…

If you’d focused on why you bought the shares…

If you’d invested for the long term…

(And assuming your thesis remained intact, throughout…)

… you’d be sitting on a very, very tidy profit, not quite four years after your purchase, now that shares are changing hands for more than $600 each.

That is more important than market timing.

That is more important than trying to pick market ‘tops’ and ‘bottoms’.

That is more important than letting the market tell you what to think.

That is more important than trading impatiently.

That… is investing.

Fool on!

The post Patience, grasshopper appeared first on The Motley Fool Australia.

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• Why ‘value’ and ‘growth’ share categories are meaningless
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Motley Fool contributor Scott Phillips 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.

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The Thomson Resources Ltd (ASX: TMZ) share price rallied on Wednesday after the miner posted an update on its Conrad Project.

The miner and its technical consultants have identified significant exploration potential at its silver project.

The Thomson Resources share price jumped 7.7% to close the day at $0.14 when the S&P/ASX 200 Index (Index:^AXJO) fell 0.3%.

Conrad fires up the Thomson Resources share price

The miner said that Conrad is historically the largest silver producer in the NSW section of the New England Fold Belt.

The area’s historic production of 3.5 million ounces (Moz) silver at a grade of approx. 600 g/t and significant co-products of lead, zinc, copper and tin.

The more bullish estimate for Thomson Resources’ Conrad Project came through the assessment of holes completed post the previous mineral resource estimate and new mine modelling based on true width, rather than the previously artificially constrained mining widths.

Bigger and more prospective than originally thought

Previous exploration data at the project seemed to have underestimated the potential of Conrad.

For instance, six core holes were drilled within the Conrad mineral resource area in 2010 by its previous owner. These were not included in the 2008 mineral resource estimate.

Two of these holes intersected significant mineralisation with estimated true widths including 1.2 m @ 790.9 g/t of silver (Ag) and 1.6 m @ 159.5 g/t Ag.

Potential upgrade in the wings

Thomson has appointed AMC Resource Consultants to undertake the systematic mineral resource re-estimations.

“A re-validated 138 drill hole data database and a new 3D Lode and Alteration model has been built for Conrad by Thomson’s technical consultants Global Ore Discovery and delivered to AMC to initiate the new resource calculation,” said the miner.

“The average estimated true width for the intercepts within the Conrad Lode Model is 1.7m, suggesting that significantly more tonnes of mineralisation will be considered in the new mineral resource estimate when compared to the fixed 1.2 m mining width parameters applied in the 2008 mineral resource estimate.”

Surging commodity prices adds fuel to the Thomson Resources share price

The recent surge in commodity prices also bodes well for the economics of the project. The price run may allow for lower cut off grades to be used for both the high-grade shoots and lower grade near surface Greisen Zone.

“New AgEq gram x metre modelling of the Conrad Lode system shows that several of the key mineralised shoots are open and untested below 350 m depth, indicating priority mineral resource extension drill targets,” added Thomson.

“VLF-EM geophysical surveys completed in 2010 of 7.5 km along the trend identified conductivity anomalies coincident with the known lodes and a series of high priority conductivity anomalies along the 5 km trend south-east of the known lodes. These represent priority exploration drill targets.”

The post Thomson Resources (ASX:TMZ) share price surges on exploration results appeared first on The Motley Fool Australia.

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• 2 ASX 200 blue chip shares named as buys

Brendon Lau does not own shares mentioned in this article. Connect with me on Twitter @brenlau.

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 QuickFee Ltd (ASX: QFE) share price finished the day in the green following the company’s CEO transition and trading update.

By close of trade, shares in the professional services payment provider had travelled 2.04% higher to 25 cents. In earlier trade, the company’s shares leapt by as much as 12.2% to 27.5 cents before retreating to their current level.

CEO transition completed

Investors were buying up QuickFee shares in response to the company’s latest news.

In a statement to the ASX, QuickFee announced it’s appointed Eric Lookhoff as its new CEO. This comes as founder and current CEO Bruce Coombes steps into the role of managing director of Australian operations. Coombes’ new responsibilities also include delivering special projects to market.

Lookhoff, the incoming CEO, will take over the reins on 1 July and join the board as an executive director. Previously, Lookhoff was QuickFee’s president of its United States business from February 2021. 

QuickFee chair Barry Lewin said:

Bruce created our Australian and US businesses from a standing start and achieved significant organic growth. He will continue to be a major contributor to QuickFee in the company’s next phase of growth, as a board member and in his new role overseeing Australia and other major growth projects.

We are delighted to have someone of Eric’s calibre to drive the overall growth of QuickFee going forward. Eric brings a unique skillset, enormous experience, and a strong US professional network that will ensure QuickFee is best able to capitalise on major growth opportunities in QuickFee’s payments business. This change in leadership positions QuickFee well for the future.

Trading update

In a positive sign of recovery, QuickFee stated operating performance for May and June has delivered encouraging results. While no financial details were given, the company revealed three key areas are witnessing growth in Q4 FY21. They are Australian traditional financing, United States PayNow transaction volumes, and QuickFee instalments in both geographical markets.

Finally, the company noted traditional financing in the US is in line with the previous quarter (Q3 FY21). The US Government’s stimulus measures have been blamed for weighing down on QuickFee’s lending growth.

QuickFee share price snapshot

QuickFee shares have fallen by around 45% over the past 12 months. Year to date share price performance has also been subpar, with the company recording a 36% decline.

On valuation grounds, QuickFee commands a market capitalisation of roughly $51 million, with approximately 201 million shares on issue.

The post Why the QuickFee (ASX:QFE) share price jumped higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Coda Minerals Ltd (ASX: COD) share price went gangbusters today. At close of trade, shares in the mineral explorer are sitting at $1.19 each. That’s an incredible 235.21% higher than yesterday’s closing price.

This monumental price rise comes after the company announced a “significant” iron oxide copper-gold (IOCG) result at its South Australian mine. IOCG ore can contain large amounts of copper, gold, and sometimes uranium.

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

Why the Coda Minerals share price struck proverbial gold

In a statement to the ASX, Coda Minerals, along with its 30% ownership partner Torrens Mining Ltd (ASX: TRN) – also up an impressive 106% today, declared “highly encouraging” preliminary results at Emmie Bluffs Deep in its Elizabeth Creek project in SA.

According to the statement, its initial drill hole yielded “a 200m sequence of intense haematisation and alteration,” in other words, signs of IOCG deposits. These included “a 50m sequence of zoned copper sulphide mineralisation.”

Coda Minerals has stressed in its announcement, however, these initial drill results are indicative only and yet to be confirmed in a laboratory. Investors are clearly jumping on the bandwagon anyway, judging by the performance of the Coda Minerals share price today.

Management commentary

Coda Minerals Chair Keith Jones said:

We have long known we are exploring in elephant country – a view backed up not only by the world class projects which surround us, but also by historical and geophysical evidence of an IOCG system in the northern part of the tenure.

Given that we knew the enormous potential of our tenure, it is still tremendously exciting for our first deep exploration hole at Elizabeth Creek to have intersected evidence of a major IOCG system existing on our ground.

Coda CEO Chris Stevens added:

This is a very exciting and significant result for the very first deep IOCG exploration hole to be drilled at our Elizabeth Creek project since we listed on the ASX, and it represents the culmination of significant geological and geophysical targeting work undertaken prior to listing.

Regardless of the final assays, it is clear based on geological data alone we have intersected an IOCG alteration system of significant scale.

…we feel we owe it to our shareholders to pursue this game changing opportunity with vigour.

Gold and copper commodity prices

While gold is up 3.2% over a month to US$1,893 per troy ounce, copper is down 4.2% to US$4.53 a pound.

Trading Economics says the price of gold has been rising in recent weeks due to fears of inflation while copper is down because of lacklustre demand for the metal from China. The website, however, expects the price of both metals to decrease in 12 months’ time.

Coda Minerals share price snapshot

Over the past 12 months, the Coda Minerals share price has increased 145%. To put today’s price rise into perspective, it’s 90% greater than Coda’s total gains across an entire year.

In fact, if an investor had bought shares in the company at the start of 2021, they would be sitting on an impressive 272% return on investment.

After today’s phenomenal result, the market capitalisation of Coda Minerals has jumped from $24.3 million to more than $75 million.

The post Here’s why the Coda Minerals (ASX:COD) share price just rocketed 235% 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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