Tag: Motley Fool

Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Sunday night to discuss the big economic week ahead, including payroll numbers, inflation, and credit card spending… and some analysts are expecting the ASX to finish the financial year with a bang!

The post A big week of data — and high hopes for the ASX. Motley Fool CIO Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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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. 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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It has been a very volatile day for the S&P/ASX 200 Index (ASX: XJO) on Tuesday. However, in afternoon trade, things are looking positive and the index is up 0.2% to 7,294.8points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are trading lower:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down almost 2% to $5.72. This may have been driven by a broker note out of Citi. Its analysts note that UK consumer goods company Reckitt has agreed to sell its China-based infant formula company. It believes this could be a sign that success in China will be increasingly challenging for foreign formula brands. The broker believes a2 Milk should be looking to diversify away from the market. Citi has a sell rating and $5.85 price target on the company’s shares.

ASX Ltd (ASX: ASX)

The ASX share price is down 1.5% to $74.23. Today’s decline appears to have been driven by a broker note out of Morgans this morning. According to the note, the broker has downgraded this stock exchange operator’s shares to a reduce rating with a $65.87 price target. Morgans was reasonably underwhelmed with the company’s latest monthly update.

Galaxy Resources Limited (ASX: GXY)

The Galaxy share price is down 4% to $3.84. With no news out of the lithium miner, this decline may have been driven by profit taking from investors. After all, the Galaxy share price is up 67% since the start of the year even after taking today’s decline into the equation.

Imugene Limited (ASX: IMU)

The Imugene share price is down 16% to 31 cents. This is despite there being no news out of the immuno-oncology focused biopharmaceutical company. Imugene’s shares are now down by over a third since hitting a record high late last month. Despite these declines, the pre-revenue company still has a market capitalisation of ~$1.5 billion.

The post Why A2 Milk, ASX Ltd, Galaxy, & Imugene shares are dropping today appeared first on The Motley Fool Australia.

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James Mickleboro owns Galaxy shares. 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.

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The Race Oncology Ltd (ASX: RAC) share price is falling today after the pharmaceutical company announced a contract award for a leukemia trial.

Race Oncology has signed up a leading Israeli company to supply drugs and provide other clinical services for its phase 2 relapsed/refractory acute myeloid leukemia (AML) trial.

AML is a type of blood cancer that starts in the bone marrow, and usually moves into the blood stream. While treatment options are limited, if not addressed, AML can be life-threatening.

At the time of writing, Race Oncology shares are swapping hands for $3.73, down 1.06%.

What has Race Oncology announced?

The Race Oncology share price is losing ground today despite the company’s latest upbeat announcement.

In today’s release, Race advised it has entered into a contract with Israel’s leading pharmaceutical distributor, Trialog Clinical Trials. The agreement will see Trialog deliver trial drugs, including Bisantrene, and provide other clinical services. Bisantrene is a small-molecule anti-cancer drug being developed by Race for the treatment of AML.

Race Oncology is scheduled to run its phase 2 AML trial at the Chaim Sheba Medical Centre in Israel. The study will use Bisantrene in a novel three-drug combination to show its superior efficacy in AML cells. The trial involves 29 participants, with the first patient due to receive treatment in the third quarter of the calendar year.

The company said the supply agreement will cost a maximum of about US$800,000. This is expected to cover the patient enrolment period from 2021 to 2023.

Furthermore, the phase 2 AML trial will run alongside an Australian phase 2 trial in patients with extramedullary AML. The latter is planned to begin in the fourth quarter of 2021.

Extramedullary AML is considered a rare and serious illness with about a 25% survival rate over a 5-year term. The disease occurs when the leukaemia spreads from the bone marrow and forms solid tumours in tissues such as the skin, breast, kidney, brain, or other organs.

About the Race Oncology share price

Race Oncology shares have gained more than 1,000% in the past 12 months and are up by more than 110% year to date.

Based on today’s price, Race Oncology has a market capitalisation of about $542 million, with 143 million shares on issue.

The post The Race Oncology (ASX:RAC) share price is stumbling 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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Shares in Raiz Invest Ltd (ASX: RZI) are climbing today following the release of the company’s key metrics for the month of May. At the time of writing, the Raiz share price is $1.40 – 4.87% higher than yesterday’s closing price.

Within Raiz’s release today, the financial services company announced it has reached two major milestones and continued its upwards growth.

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

The month that was for Raiz Invest

For the first time, Raiz’s Australian funds under management exceeded $750 million.

According to the company’s managing director and global CEO George Lucas, the company is on track to have over $1 billion under management by the end of the year.

Its managed superannuation funds also met a milestone, surpassing $100 million. This was pushed by a 4.7% increase to the amount of Australian super managed by the company over the course of May.

Further, the number of Australian customers signing up to the company’s services grew by 1.6% in May. Its managed Australian investment accounts increased by 1.8% in the same time.

Last month’s boost means the company now has 76.2% more Australian funds under management than it did this time last year.

According to Lucas, Ramadan affected the amount of new Indonesian and Malaysian customers the company signed up last month, which increased by 7.2% and 9.3%, respectively.

Finally, the company shared that Acorns Grow Inc – which Raiz split from in 2018 – is planning to list on the Nasdaq exchange.

Acorns is the second largest shareholder of Raiz Invest.

Raiz share price snapshot

The Raiz share price has been performing well on the ASX lately.

Raiz shares have grown 42% since the start of 2021 and 91% on this time last year.

The financial services company has a market capitalisation of around $109 million, with approximately 81 million shares outstanding.

The post Here’s why the Raiz (ASX:RZI) share price has gained 5% today 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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The Ora Banda Mining Ltd (ASX: OBM) share price is one of the worst performers on the ASX today. This comes after the gold miner announced an update on its capital raising efforts.

At the time of writing, Ora Banda shares are down 12.20% to 18 cents.

What’s happening with the Ora Banda share price?

A major catalyst for the fall in today’s Ora Banda share price is an impending share dilution.

According to today’s announcement, Ora Banda has successfully completed a share placement.

The company received commitments from new and existing international and domestic institutions, raising $21 million before costs.

According to the placement, about 124 million shares will be issued at a price of 17 cents each. This represents a 17.1% discount to Ora Banda shares’ last closing price of 20.5 cents on 3 June before they entered a trading halt.

Ora Banda will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to 15% of its total shares to be issued without shareholder approval. In addition, the company will issue another 588,236 shares ($100,000 worth) to the managing director, David Quinlivan. This, however, is conditional on shareholder approval, with the general meeting expected to be held around 19 July 2021.

The proceeds of the placement will be used for the development of its Davyhurst Gold Project. This includes resource definition and reserve replacement, maiden reserves work, regional exploration, ramp-up costs and working capital expenses.

Lastly, Ora Banda says it will launch a $4 million Share Purchase Plan with the same terms offered to eligible investors. Up to 23.5 million new shares will be created, with the monies being put towards corporate purposes and working capital.

Management commentary

Ora Banda managing director, David Quinlivan said:

FY 2021 has been an incredibly busy time for Ora Banda. It was the year in which the Company started three new mines, installed and commissioned a range of significant infrastructure on site including a new LNG power station, built a new camp, completed the planned process plant remedial works program on time and within budget and then recommissioned this plant.

All of this achieved during a year of significant global “Covid-19” disruptions. With three mines on line by the end of June, the Company has a solid and flexible production base as processing ramps up to nameplate capacity.

Funding to progress resource and reserve definition and advance high priority exploration targets ahead of when previously planned will further underpin the Company’s long-term future.

The Ora Banda Energy share price is down by more than 30% since this time last year.

The post Why the Ora Banda (ASX:OBM) share price is sinking 12% today appeared first on The Motley Fool Australia.

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• Why the MNF (ASX:MNF) share price is racing higher again today
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• The battle for Vitalharvest (ASX:VTH) shares isn’t over yet!
• Mad Paws (ASX:MPA) share price wagging its tail on acquisition news

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 MNF Group Ltd (ASX: MNF) share price has been a solid performer again on Tuesday.

In afternoon trade, the VoIP network provider’s shares are up 5% to $5.60.

This means the MNF share price is now up almost 14% since the start of the week.

Why is the MNF share price charging higher today?

Investors have been buying MNF’s shares today following the release of a business update.

According to the release, the company has been working hard preparing for its expansion into the Singapore market.

It is currently in the process of conducting its final technical trials with several customers, before officially going live in the market on 1 July. This is pending final regulatory approval.

This may be the first of a number of expansions in the near future. In February, management revealed that it has been completing due diligence to assess the next Asia-Pacific market to expand into. At that point, it had six possible target countries shortlisted.

Guidance update

MNF also confirmed that it is on target to achieve the top end of its earnings guidance in FY 2021. This guidance is for operating earnings of $40 million to $43 million for the 12 months ended 30 June.

It commented: “Business performance in the last quarter has been solid, and after receiving preliminary financials overnight for the month of May, the company now expects FY21 EBITDA to be within the top half of the guidance range provided. This is based on the performance of the company over a number of months including the latest results for May, the business has greater confidence in earnings projections as the end of the financial year approaches.”

Following today’s gain, the MNF share price is now up an impressive 27% since the start of the year. This compares favourably to a 9% gain by the S&P/ASX 200 Index (ASX: XJO).

The post Why the MNF (ASX:MNF) share price is racing higher again today appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MNF Group Limited. The Motley Fool Australia owns shares of and has recommended MNF Group 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 PointsBet Holdings Ltd (ASX: PBH) share price has been a positive performer on Tuesday.

In afternoon trade, the sports betting company’s shares are up 5% to $13.24.

This latest gain means the PointsBet share price has now more than doubled in value since this time last year.

Can the PointsBet share price go higher?

According to a recent note out of Goldman Sachs, there still could be plenty of upside left in the PointsBet share price.

Its analysts currently have a buy rating and $17.20 price target on the company’s shares.

Based on the latest PointsBet share price, this implies potential upside of 30% over the next 12 months.

Why is Goldman Sachs bullish?

Goldman Sachs believes that PointsBet is well-placed for growth in the coming years thanks to its strong position in a rapidly growing United States market.

It commented: “We forecast a US$39 bn sports betting TAM at maturity, implying a 40% CAGR out to 2033. As such, we believe PBH is well positioned to benefit from this multi-year high growth opportunity ahead as more US states begin to allow online sports betting, and see a path for it to achieve ~10% share overtime. Further, we believe the staged state by state opening derisks the US rollout story while we also believe there is upside risk from other adjacent revenue streams such as media/ads and iGaming which we believe is not reflected in market valuations.”

The broker also sees scope for scalability benefits.

Its analysts explained: “We see scalability benefits ahead, particularly in the US, given i) full ramp-up of its exclusive NBC partnership, the US’s largest sports broadcaster (>184 mn viewers), ii) driving marketing efficiencies, iii) scale benefits as it continues to roll out in more US states, and iv) iGaming and cross-selling opportunities ahead.”

And finally, although its valuation may look stretched using traditional metrics, Goldman actually sees a lot of value in the PointsBet share price.

It commented: “While PBH is currently trading on ~6x forward EV/sales (below the recent avg), we believe this does not accurately reflect the significant long runway of growth ahead for the business. Over the next three years, we forecast a revenue CAGR of 97%, which compares favourably against a large basket of peers (25% ex Aus peers) and US SB/iGaming peers of 35%, trading on >11x EV/Sales. Notwithstanding different business models/scale, we believe PBH’s multiple gap to US operator DraftKings (DKNG) should converge closer over time.”

The post Why the PointsBet (ASX:PBH) share price could be in the buy zone appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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When it comes to ASX dividend shares, finding a share that will consistently give you a high yield is a popular goal. And finding one that can keep delivering dividend increases might be the Holy Grail.

But dividend investors also have to be ever-watchful for the dreaded ‘dividend trap’. This describes the situation where an investor buys an ASX dividend share under the pretext of assuming that its trailing dividend yield will be consistent going forward, only to have the company cut its dividend afterwards. This not only results in a loss of potential dividend income but can also come with a capital loss as investors re-rate the shares’ valuation accordingly.

So here are 2 ASX dividend shares that according to CommSec broker Goldman Sachs, might treat investors to such a situation.

2 ASX shares that could be dividend traps

AGL Energy Limited (ASX: AGL)

AGL shares have not had much of a fun time lately. The AGL share price is currently trading at $9.04, down 25% year to date and almost 50% over the past 12 months. Falling earnings, a difficult national electricity market and the declining value of some of AGL’s energy generation assets (mainly coal-fired power plants) are most likely behind this. This decline has given AGL shares a seemingly attractive trailing dividend yield of 9.07%.

But Goldman reckons that the 98 cents per share in dividends that AGL paid out to investors in FY2020 will fall to 74 cents for FY2021, 72 cents for  FY2022 and 56 cents for FY2023. I’m sure shareholders will be hoping that doesn’t play out.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue has been a top S&P/ASX 200 Index (ASX: XJO) performer over the past year, with Fortescue shares up 51.5%. They are also up a staggering 600% in the past 5 years. And those number’s aren’t even including the hefty dividends the iron ore giant has paid out either. These lofty gains are likely the result of a rampaging iron ore price, which has spent much of 2021 at historically high prices above US$200 a tonne.

On the current Fortescue share price, the company has a whopping 10.96% trailing dividend yield. Goldman expects Fortescue to pay out US$2.37 ($3.06) in dividends in FY2021, up substantially from the US$1.18 ($1.52) it paid out in FY2020. However, it also is expecting these dividends to fall to US$1.26 ($1.63) per share in FY2022 and 81 US cents ($1.05) by FY2023. That would be a substantial income haircut if Goldman’s expectations translate to reality.

The post 2 ASX shares that brokers reckon might be dividend traps appeared first on The Motley Fool Australia.

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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 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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Vitalharvest Freehold Trust (ASX: VTH) shareholders have received yet another takeover offer for their shares.

The offer from Roc Partners is the ninth from Roc — if you’re keeping count. It comes as a counteroffer to Macquarie Group Ltd (ASX: MQG) subsidiary Macquarie Agricultural Funds Management’s (MAFM) latest takeover offer on 1 June — also MAFM’s ninth.

Vitalharvest, a real estate investment trust (REIT) focused on Aussie agricultural property assets, has been hotly contested between the 2 investment groups. Roc has indicated it’s likely to beat any MAFM offer by 1 cent per share.

And so far, Roc looks to be doing just that.

What is Roc’s latest takeover offer?

Vitalharvest reported Roc’s new offer is for $1.33 per share, or $357.35 million under the Asset Sale alternative, which it says would result in a maximum return of $1.31 per share.

The latest offer is 2 cents per share higher than Roc’s previous bid for the ASX agricultural trust. It contains other differences as well, including lowering the maximum payment to the manager under the facilitation deed to $4.5 million, down from $8 million.

Roc gave a deadline of 15 June to accept its ninth bid. However, the Vitalharvest board said the deadline would need to be pushed out “in view of the matching right timing in the MAFM Scheme Implementation Deed”.

The board said it’s “reasonably likely” Roc’s latest offer was superior to MAFM’s ninth offer of $1.295 per unit, which would be equivalent under the asset sale alternative. However, the board highlighted it has not yet made any concrete determination.

If the board accepts Roc’s latest offer, MAFM will have 5 business days to make its own new counter offer. (Yes, that will make 10).

Vitalharvest said shareholders don’t need to take any action at this time, and it will keep the market informed of any developments. The company has postponed its 10 June shareholders’ meeting.

Vitalharvest share price snapshot

The Vitalharvest share price has gained 70% over the past 12 months, handily outpacing the 20% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date, Vitalharvest shares continue to outperform, up 35%. The current share price of $1.325 sits just above Roc’s latest offer.

The post The battle for Vitalharvest (ASX:VTH) shares isn’t over yet! 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 owns shares of and has recommended Macquarie Group 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 Mad Paws Holdings Ltd (ASX: MPA) share price is surging higher today after the pet services marketplace announced it is acquiring Waggly Club.

At the time of writing, the Mad Paws share price is trading hands at 19 cents, up 11.8%.

What’s lifting the Mad Paws share price?

Investors have been scrambling to buy shares in the pet services company today following its announcement this morning.

According to the release, Mad Paws has entered into a binding agreement to acquire Waggly Club. The company being acquired is described as “one of Australia’s largest dog treats and toys subscription businesses”

Waggly was launched by founder Kate Herbert in 2016, providing dog owners with an assortment of treats and toys monthly. These subscription boxes range in value from $45 to $52 per month and are tailor-made based on the dog’s age, chewing needs and size.

Waggly’s founder and CEO, Kate Herbert stated:

As we look to our next horizon, my aim is to scale Waggly and reach more and more dogs and their fur parents each month. To this end, I feel Mad Paws and Waggly are a perfect match.

The details

Mad Paws has agreed to acquire 100% of Waggly Club through a combination of cash and shares. Total cash consideration of $2 million will be paid upon completion of the acquisition, along with $1 million worth of Mad Paw shares. The issuing Mad Paws share price will be at 25 cents per share.

Furthermore, another $0.5 million will be payable dependent on Waggly Club achieving agreed revenue-based performance hurdles up until 31 December 2022.

Regarding Waggly’s financial performance, the company currently serves roughly 2,000 orders per month. Around 70% of the company’s revenue is subscription-based. From Fy20 to FY21, Waggly nearly doubled its revenue to $1.5 million.

The Waggly Club acquisition is not subject to conditions and is expected to be completed today, 8 June 2021.

The post Mad Paws (ASX:MPA) share price wagging its tail on acquisition news appeared first on The Motley Fool Australia.

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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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