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The MNF Group Ltd (ASX: MNF) share price has been a positive performer on Monday morning.

At the time of writing, the VoIP network provider’s shares are up 6% to $5.25.

Why is the MNF share price charging higher?

Investors have been bidding the MNF share price higher today after it announced an agreement to sell part of its Direct Business to Vonex Limited (ASX: VN8).

According to the release, the two parties have signed a non-binding term sheet for $31 million. This values the direct business at approximately 2x revenue.

Management notes that the sale is in-line with MNF’s strategy to simplify its business, grow recurring revenues, and focus on growing the MNF wholesale business, Symbio.

As part of the term sheet, MNF and Vonex intend to enter into a binding five-year Symbio wholesale supply agreement for phone numbers and minutes. This wholesale agreement is expected to retain in excess of $3 million per annum in long term revenue.

The deal remains conditional on satisfactory outcomes of due diligence, Vonex receiving funding, and board approvals from both parties. If everything goes to plan, MNF expects that an asset sale agreement will be executed in July.

Which business is being sold?

The release explains that the Direct Businesses that form the sale agreement include those that provide cloud phone, mobile, and internet services directly to small business and residential customers in Australia.

These customers are predominantly served by the MyNetFone brand. However, the brand is not part of the sale and MNF will retain the Enterprise and Government clients.

MNF’s CEO, Rene Sugo, said: “The divestment of these direct businesses is in line with our strategy to simplify MNF’s business and drive growth in our CPaas and UCaas voice services, which are in high demand. Importantly, funds from the sale will be reinvested into our growing wholesale business and our expansion offshore. Assuming all conditions are met, we expect the sale to be completed by end of July 2021.”

Guidance reaffirmed

In addition to the above, the company has taken this opportunity to re-affirm its operating earnings guidance for FY 2021 of $40 million to $43 million.

The post Why the MNF (ASX:MNF) share price is up 6% 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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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.

Derided by many pundits as a joke digital coin with no real path to gaining stable value, yet defended stoutly by its legion of retail investor fans, Dogecoin (CRYPTO: DOGE) has followed a roller-coaster pattern of massive price surges and dizzying plunges over the past few months. The coin with its Shiba Inu mascot image, however, has slowly gained some traction as a medium of exchange. Recently, Jenny Ta, founder of crypto-commerce site CoinLinked, asserted that its market cap could reach $1 trillion, indicating Dogecoin might eventually trade for $7 to $8.

There are indeed some positive signs for the formerly long-dormant dog-themed cryptocurrency, but the level of risk for its buyers remains high.

How Dogecoin got here

After its launch in late 2013, Dogecoin’s value remained at fractions of a cent for the next seven years, while Bitcoin (CRYPTO: BTC) grew to dominate the cryptocurrency market. In 2021, however, Dogecoin has gained explosively in price with rises that included a more than 500% one-day jump on Jan. 29.

Its rise was triggered by a group of crypto enthusiasts on Reddit looking to repeat in the digital currency arena what the WallStreetBets subreddit did to the share price of GameStop. Those stock traders ignited a short squeeze in which some small investors profited by pumping up the value of GameStop, which forced institutional short-sellers to push it even higher as they covered and closed their money-losing short positions.

According to many involved, a sizable number of Redditors viewed the short sellers’ behavior as artificially depressing the share prices of GameStop and other heavily-shorted companies far below their objectively reasonable valuations. Their desire to punish what they perceived as an example of “vulture capitalism” gave them additional motivation to buy and hold the stock.

Dogecoin’s surge was aided by tweets from maverick electric vehicle CEO and space pioneer Elon Musk, and it was dubbed “the people’s coin” or “the people’s crypto” by its enthusiasts. This sparked the rapid growth of the r/dogecoin subreddit, which reached 1.9 million members by May 20. Large holders also played significant roles in the coin’s rise, as well as its subsequent drops as those “whales” pumped and dumped the coin.

Where does Doge go from here?

The broader cryptocurrency market remains extremely volatile with intensely held views on both sides of the argument around the real value of such assets. Powerful, unpredictable price movements mean long-term investments in a well-chosen portfolio of traditional stocks are likely to deliver better returns for many investors, based on the standard analytical view.

However, in the process of being bought and traded, Dogecoin has acquired value and characteristics absent from its original “meme coin” incarnation. Here are some potential signs of this shift from low-value meme to potential medium of exchange:

1. It is retaining value despite the crypto roller-coaster

Cryptocurrencies in general have taken a pummeling over the past several weeks, and Dogecoin has not been immune from that trend. Its value often moved independently from Bitcoin or even the crypto market as a whole during its ascent, and its price has hovered in the $0.30 to $0.40 range for nearly a week. This stability has come despite the average size of trades and the overall trading volume dropping sharply. The average transaction value, which shot upward starting in mid-April, peaked at $1.16 million on May 23, then fell back to less than $240,000 by May 26, according to data supplied by BitInfoCharts.

That Dogecoin continues to trade far above its early 2021 price range of $0.02 or less suggests that market forces have established a “floor” at current levels, at least for the time being. The coin’s worth never fell far below $0.30 during the past month, despite China’s push to ban cryptocurrency mining. That decision came as a blow to Bitcoin miners in particular, since 65% of them are believed to operate in China, but the decision exerted downward pressure on the whole crypto market.

2. It has some everyday advantages over Bitcoin

Among the younger demographic that makes up the bulk of cryptocurrency enthusiasts, preserving the environment is commonly seen as a high priority.

In light of that, the vastly lower amount of electricity required to mine and use Dogecoin compared to Bitcoin could boost its attractiveness as a crypto alternative. Dogecoin uses just 0.12 kilowatt-hours of electricity per transaction, compared to Bitcoin’s 707 kilowatt-hours.

Though the concept is currently little more than an upbeat prospectus, the nonprofit VeriBlock Foundation says it is working on a “proof-of-proof” blockchain technology that would reuse Bitcoin’s proof-of-work security for other cryptocurrencies, including Dogecoin. If successfully deployed, the technology could greatly lower Bitcoin’s relative environmental costs, while providing improved security for other cryptocurrencies, potentially helping Bitcoin and Dogecoin develop a type of symbiosis rather than a direct rivalry, benefiting holders of both.

While some view with concern the fact that there is no limit on the total number of Dogecoin that could eventually be mined — in contrast to Bitcoin, which does have a hard cap — a maximum of 5.26 billion additional Dogecoin tokens can be mined per year. With over 129 billion coins already in circulation, this capped mining rate ensures Dogecoin’s inflation rate will decline steadily over time, while still providing an incentive to continue mining it.

The total number of Dogecoin in circulation will rise by 4.1% in 2021, but only 3.9% in 2022. Dogecoin inflation will be 3.5% in 2025, 3.0% by 2030, 2.3% by 2040, and 1.9% by 2048. Given the attrition from lost Dogecoin wallets — a factor in the supply of all cryptocurrencies — the coin could theoretically become deflationary at some point if those losses exceed the ever-shrinking inflation provided via mining.

In short, while Dogecoin is theoretically “infinitely inflationary,” its predictably declining, mathematically inevitable inflation rate potentially gives it more a stable value than national currencies.

3. It’s gradually winning wider acceptance

Like any currency, Dogecoin gains value as it becomes more widely accepted as a medium of exchange. While dozens of small businesses now accept Dogecoin as a form of payment, their economic impact is effectively zero. However, some larger entities are also accepting Doge, including the NBA’s Dallas Mavericks, which will let customers use it to buy both tickets and merchandise through BitPay.

As team owner Mark Cuban stated: “The Mavericks have decided to accept Dogecoin as payment for Mavs tickets and merchandise for one very important, earth shattering reason, because we can!” The team’s press release offered some more practical reasons for the decision, noting that the “ability to accept crypto expands a business’ sales opportunity into international markets where accepting credit cards is not practical while reducing high fees and increasing payment transparency and efficiency.” The Houston Rockets are also accepting Dogecoin, among other cryptocurrencies.

It is now also possible to purchase the hardest of hard assets, precious metals, using Dogecoin. The largest U.S. silver and gold e-commerce site, JM Bullion, added it to the list of seven cryptocurrencies it accepts as payment. Under JM Bullion’s policy, buyers using cryptocurrencies receive a 3% discount on their transactions compared to credit card purchases, close to the 4% discount it offers to purchasers who pay via personal check.

Rumors also continue to swirl that so-called “DogeFather” Elon Musk might start accepting the cryptocurrency for purchases of Tesla vehicles. The electric car manufacturer has stopped accepting Bitcoin payments due to the coin’s adverse environmental impact, but Musk continues to offer verbal support for Dogecoin. However, with Musk now signaling that he’d be willing to reverse his Bitcoin rejection if miners commit to “going green,” Tesla’s future stance on Dogecoin remains cloudy.

Choosing a ‘diamond hands’ or ‘paper hands’ strategy

Though it was born as a “joke coin,” Dogecoin now enjoys a number of potentially bullish factors, making it less simple to dismiss as an asset. The risk to investors remains high, as it does with all “altcoins,” but Dogecoin’s low energy costs, a potential for a shared security protocol with Bitcoin, the willingness of a few larger companies to accept it for purchases (and the possibility that more will join them), and a measure of price stability are positive signs overall. Though not directly measurable, Dogecoin also may benefit from the considerable good will of its two million strong retail investor “fan base.”

Fools investing in cryptocurrencies should not put any money into Dogecoin that they are not prepared to lose. Those who already have positions in it may want to get out if they aren’t comfortable with volatile, high-risk investments — be “paper hands” in the parlance of Reddit retail investors. But if you are prepared to hold cryptocurrencies through dips and fluctuations — adopting the unshakable “diamond hands” strategy — then over the medium to longer term, “joke” currency Dogecoin has at least some potential to leave you laughing all the way to the bank.

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

The post 3 reasons Dogecoin could head to the moon — Someday appeared first on The Motley Fool Australia.

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Rhian Hunt owns shares of Dogecoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and 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.

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

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The 88 Energy Ltd (ASX: 88E) share price is falling hard in morning trade, down 9%.

Below we take a look at the ASX energy share’s latest acquisition announcement.

What acquisition announcement did 88 Energy make?

88 Energy’s share price is plummeting after the company reported it has entered into an agreement to acquire Alaska Peregrine Development Company’s (APDC) 50% working interest in Project Peregrine, located in Alaska.

Once the acquisition is complete, 88 Energy will hold a 100% working interest in Project Peregrine.

The company said the agreement will enable it to continue exploring for oil at the site next winter, whereas APDC was considering a pause in exploration as it analyses results from Merlin-1.

Under the agreement, 88 Energy will pay APDC US$14 million (AU$18 million), payable in its shares and subject to certain stipulations. APDC will also receive 1.5% overriding royalty interest on future production from the Project Peregrine licences and a US$10 million cash payment “on the achievement of gross 2P reserves of 100 million barrels within 36 months”.

According to the release, APDC will also receive:

• Cash payments of US$2.5 million per 50 million barrels on the achievement of gross 2P reserves added over 100 million barrels within 36 months (capped at 5 additional cash payments); and
• 10% of the gross sale proceeds in respect of an assignment of greater than 49% of Project Peregrine within 24 months, excluding a bona fide farm-out.

Commenting on the agreement, Managing Director, Ashley Gilbert said:

This is an excellent outcome for our shareholders as we now have full control of the project, including the possibility of further farm-out to a new partner with greater technical and operational capability, ahead of future planned drilling and exploration activity… We also remain optimistic about the future results from the ongoing laboratory tests related to the Merlin-1 well…

Having 100% working interest in both Project Peregrine and the neighbouring Umiat Oil Field, opens up significant potential for the Company to realise value in the region.

88 Energy noted that APDC remains liable for all outstanding cash calls in relation to Merlin-1 and that the newly announced agreement does not include the Umiat Oil Field

88 Energy share price snapshot

88 Energy shareholders have witnessed some big price swings over the past 12 months, with shares currently up 100% over the past full year. By comparison, the All Ordinaries Index (ASX: XAO) has gained 21% over that same time.

Year-to-date the 88 Energy share price is also up 100%.

The post Why the 88 Energy (ASX:88E) share price is plummeting 9% this morning 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. Bernd Struben 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 Altium Limited (ASX: ALU) share price has commenced trade later than normal on Monday and is shooting higher.

At the time of writing, the electronic design software company’s shares are up 40% to $38.00.

What’s happening with the Altium share price today?

This morning the Altium share price was paused earlier today pending the release of an announcement.

That announcement has now been released and reveals that the company has been the recipient of an opportunistic takeover approach.

According to the release, Altium has received a formal, non-binding, indicative and unsolicited proposal from US giant Autodesk, Inc. (NASDAQ: ADSK) for the acquisition of 100% of Altium shares at $38.50 per share by way of a scheme of arrangement.

While this represents a 41.5% premium to its last close price of $27.21, it is also a 4.2% discount to its 52-week high.

Autodesk is a US$62 billion US-based multinational software company that makes software products and services for the architecture, engineering, construction, manufacturing, media, education, and entertainment industries.

What was the Altium response?

The Altium Board has responded to the offer by stating that it appreciates the interest expressed by Autodesk, which has evolved from a dialogue about a strategic partnership.

However, it believes the proposal significantly undervalues Altium’s prospects and therefore rejects the proposal at the current price.

The Altium Board also highlighted that the proposal is non-binding, was unsolicited and is subject to Autodesk performing satisfactory due diligence as well as other conditions. This includes the unanimous support of the Altium Board, which this offer has not received.

Commenting on the future, the Board said: “Altium’s strong track record of setting ambitious long-term goals and achieving them, gives the Altium Board confidence in the Company’s ability to pursue its transformative strategy for the electronics industry and to achieve its 2025 financial goals. Having successfully pivoted to the cloud, Altium is now well positioned to pursue market dominance and industry transformation. The adoption of Altium’s cloud platform is transforming Altium’s business model from maintenance-based subscription to capability-based SaaS subscription.”

The Altium share price is now up 10% year to date following today’s gain.

The post Altium (ASX:ALU) share price shoots 40% higher on takeover approach 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 Altium. The Motley Fool Australia owns shares of and has recommended Altium. 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 Fortescue Metals Group Limited (ASX: FMG) share price has been a solid performer over the last 12 months. This comes after the iron ore miner achieved record year-to-date shipments coupled with the surging iron ore price.

However, the federal government’s political tensions with China have put Australia’s most precious commodity in the spotlight.

Below, we take a look into the issue facing Fortescue today.

What challenge is Fortescue facing?

Fortescue shares have been dipping lower in recent times amid the backdrop of the ongoing feud between Australia and China.

China has taken punitive economic measures against Australia for calling an inquiry into the origin of COVID-19. As such, China imposed tariffs or restrictions on Australian coal, barley, wine, red meat, cotton, timber, and even lobsters.

Just recently though, China has turned its attention to reducing its reliance on Australian iron ore. Last year, the Asian giant bought around 70% of the steel making ingredient from us, worth more than $90 billion.

But now, China is focused on promoting domestic production, as well as exploiting untapped deposits in Africa. Fortunately for Australia and its leading iron ore miners, it’s easier said than done. Based on the sheer scale of Chinese demand, this would take at least a number of years.

Despite the drop in Fortescue shares, the spot price of iron ore has skyrocketed to US$206.29 a tonne.

What do the Brokers think?

At the end of April, a number of brokers rated the company with varying price points. Investment firm Morgans cut its price target for Fortescue by 1.4% to $20.90. Citi followed suit to also reduce their rating by 3.8% to $21.80. The most recent broker note came from Goldman Sachs last week, which has initiated a price of $18.20 for the mining outfit.

At the time of writing, the Fortescue share price is sitting at $23.41, up 1.92%. Based on the above broker notes, the miner’s shares are somewhat higher than what analysts are currently valuing the company.

Fortescue share price snapshot

The Fortescue share price has gone from strength to strength over the past 5 years, rising more than 600%. The company’s share price reached an all-time high of $26.40 at the beginning of January.

On valuation grounds, Fortescue commands a market capitalisation of roughly $70 billion, with approximately 3 billion shares on issue.

The post Fortescue (ASX:FMG) share price rises higher amid political landscape appeared first on The Motley Fool Australia.

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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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Austal Limited (ASX: ASB) shares are edging higher in early morning trade. At the time of writing, the Austal share price is trading 3.12% higher at $2.31. This comes as the shipbuilding company announced it has been awarded a contract with the United States Navy.

Let’s take a closer look at the company’s latest news.

Austal partnership with US Navy

Investors are pushing the Austal share price higher on Monday after the company advised it has won a contract to design a new Navajo-class Towing, Salvage and Rescue Ship (T-ATS) for the US Navy.

Valued at $3.8 million, the deal will see Austal prepare a functional design for the 80-metre monohull vessel. This will include an array of multi-mission capabilities to support towing, salvage, search and rescue, oil spill response, humanitarian assistance and surveillance activities. In addition, the T-ATS may possess cyber, electronic warfare, and decoy and surveillance systems.

This is Austal’s first contract to develop steel ships for the US Navy. Shareholders will likely be hopeful the contract will help boost Austal shares back towards their 2019 highs, which were almost double today’s price.

Austal CEO Paddy Gregg commented:

In June 2020, Austal announced our intention to invest approximately US$100 million in steel shipbuilding capability at Mobile, Alabama, co-funded by the United States Government. In March 2021, the Austal USA team broke ground on new steel shipbuilding facilities and now, we have received the first contract to design the steel-hulled Navajo-class T-ATS ships for the United States Navy.

Austal USA is now well on the path to delivering steel ships for the United States Navy and we couldn’t be prouder of the hardworking team in Mobile, Alabama; now the 5th largest shipyard in the United States.

Austal share price summary

It has been a disappointing 12 months for the Austal share price, which has fallen by more than 30%. Year to date, the company’s shares haven’t fared much better and are down by around 14 since the start of 2021.

Austal has a market capitalisation of roughly $825 million, ranking it the 331st largest company on the ASX.

The post Why the Austal (ASX:ASB) share price is moving up today appeared first on The Motley Fool Australia.

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Aaron Teboneras 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 Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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 trailblazer of streaming entertainment, Netflix (NASDAQ: NFLX), has experienced tremendous growth in the past decade, growing from a $14 billion market cap to the $223 billion giant it is today. Revenue over the past four quarters totaled $26.4 billion, and the company now has 208 million paying members in more than 190 countries who enjoy what the service has to offer. 

This kind of success, however, attracts competition. And with a slowdown in growth during Q1 of this year, investors are wondering, “How will Netflix continue to add subscribers?” Read on to find the answer. 

1. Keep producing great content 

For the monthly cost of $13.99 (U.S. standard plan), viewers gain access to a content library worth $26 billion. This catalog was good enough to give Netflix 35 Oscar nominations this year, more than rivals Amazon and Walt Disney combined. Above all else, focusing on delivering a fantastic product for consumers should remain a top priority. 

Netflix’s value proposition is enormous, and that’s why management will occasionally raise prices, with the most recent hike happening late last year. Even with this, engagement increased and member churn decreased in the most recent quarter compared to Q1 2020. This explains why despite subscriber growth rising only 13.6% year over year, revenue soared 24.2%. 

The business plans to spend $17 billion on content in 2021, which will certainly help maintain its success at generating hit shows and movies. Netflix’s first-mover advantage is vital, as it’s now able to spread these costs over such a large subscriber base. The fact that rivals in this industry are turning to mergers and acquisitions to gain any advantage demonstrates just how dominant Netflix’s position is. 

2. Push international growth 

In the first quarter, Netflix added only 450,000 new customers in the U.S. and Canada (compared to 2.3 million additions in the region in the year-ago period), so shareholders are expecting overseas markets to drive growth. Markets outside the U.S. and Canada now account for 64% of the company’s subscriber base, a number that should rise going forward. 

India, the fastest-growing market for video streaming platforms in the world, is a massive opportunity. According to Media Partners Asia, a consulting firm, Netflix has roughly 5 million subscribers in the country today, which is just 2.4% of the company’s total. 

With a slate of 40 local productions to be released this year, Netflix is going all in on the South Asian nation. During a visit to the country in 2018, co-founder and co-CEO Reed Hastings said that the company’s next 100 million subscribers will be coming from India. Rapid growth of monthly active internet users, of which there are currently 574 million, coupled with a mobile-only plan launched in July of 2019, will support these ambitions. 

Speaking more broadly, Netflix still has a long runway for expansion internationally. There are currently just over 1.1 billion pay-TV households worldwide. If the business can reach even half that number, that’s huge. 

3. Take advantage of optionality 

The final answer to how Netflix will continue to grow its subscriber base is still a very new concept. The company is reportedly looking to hire a video gaming executive to its ranks. It’s clearly all speculation at this point, but Netflix may offer a small bundle of games, as with Apple Arcade, and it may launch this service in 2022. 

It’s unknown whether Netflix will license from others or develop its own games in-house, but the push into video games is a positive development for investors. It demonstrates the optionality that’s inherent in Netflix’s business model. 

The company has valuable intellectual property with its shows and movies that it can translate to a gaming environment. It’s already done the opposite, with many of its titles (such as Resident Evil and The Witcher) based on popular video games. This has the potential to be a lucrative second act for Netflix in its quest to control more of consumers’ attention. 

This answers the question 

Don’t worry, shareholders. Netflix is a disruptor, an innovator, and a pioneer, and its growth story is far from over. Producing compelling content, expanding overseas, and pursuing new revenue opportunities will propel the company over the next decade. 

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

The post 1 question Netflix has to answer appeared first on The Motley Fool Australia.

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Neil Patel owns shares of Amazon, Apple, and Walt Disney. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon, Apple, Netflix, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, Netflix, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Kogan.com Ltd (ASX: KGN) remains the most shorted share on the Australian share market by some distance after its short interest rose to 12.2%. Short sellers have been going after this ecommerce company after it reported significant inventory issues which have been weighing heavily on its recent performance.
• Resolute Mining Limited (ASX: RSG) has seen its short interest remain flat at 10.3%. This gold miner’s shares have come under pressure this year due to regulatory issues at its Bibiani operation in Ghana and its underwhelming production performance and guidance.
• Webjet Limited (ASX: WEB) has seen its short interest hold firm at 10.2%. Short sellers appear to believe the online travel agent’s shares are overvalued at the current level. Particularly given the stuttering travel market recovery due to COVID breakouts.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 9.6%. This online furniture and homewares retailer disappointed the market recently by announcing that it would sacrifice profit growth in order to invest heavily in its future sales growth.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 9.1% of its shares held short, which is up sharply week on week. This may be due to supply chain issues which could prevent the communications, defence, and space company from delivering on its sizeable sales pipeline.
• Tassal Group Limited (ASX: TGR) has short interest of 9.1%, which is down week on week. Weak salmon prices could be partly to blame for the high level of short interest.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease notably to 8.5%. Short sellers may have been closing positions after a reasonably sharp pullback in the Flight Centre share price over the last two and a half months.
• Megaport Ltd (ASX: MP1) has short interest of 8.1%, which is down slightly week on week. Some short sellers appear to believe the Network as a Service provider’s shares are overvalued at the current level.
• Inghams Group Ltd (ASX: ING) has 7.9% of its shares held short, which is down slightly week on week. Short sellers may be regretting this one. The Inghams share price has been charging higher recently after providing earnings guidance well ahead of the market’s expectations.
• Zip Co Ltd (ASX: Z1P) has short interest of 7.3%, which is down week on week. This buy now pay later provider’s shares have more the halved in value since the middle of February. Valuation concerns appear to be weighing on its shares.

The post These are the 10 most shorted shares on the ASX appeared first on The Motley Fool Australia.

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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 recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Kogan.com ltd, MEGAPORT FPO, and Temple & Webster Group 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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The SILK Laser Australia Ltd (ASX: SLA) share price is on the move on Monday morning.

In early trade, the laser, skin care, and cosmetic injections company’s shares are up 3% to $3.92.

This means the SILK share price is now up 13.5% from its December IPO price of $3.45.

Why is the SILK share price rising today?

Investors have been buying the company’s shares this morning after it announced the achievement of a key milestone.

According to the release, SILK has now reached a total of 60 clinics nationwide after opening two new clinics in Woden, ACT and Charlestown, NSW.

The release advises that the new clinic openings are in line with SILK’s organic network growth strategy of rolling out additional clinics in markets where it is currently under-penetrated, including Canberra and Newcastle.

SILK has now opened ten new clinics in FY 2021, with two more clinics expected to open by the end of the month. This will exceed SILK’s organic growth goal of opening six to ten new clinics per annum as the company progresses to its medium-term network plan of approximately 150 clinics.

The new Woden and Charlestown clinics operate under the joint venture ownership model, with leading cosmetic injectable nurses as SILK’s joint venture partners in these clinics.

Both joint venture partners have a strong existing client base in their respective markets. As a result, the new clinics are expected to ramp up sales quickly and generate positive cash flow and EBITDA in their first year of operation.

Management commentary

SILK’s Managing Director and Co-Founder, Martin Perelman, commented: “We are very excited to launch our newest injector-led clinics in Woden and Charlestown. The joint venture ownership model offers the injector nurses an attractive entry into business ownership while allowing us to attract key talent to SILK and deliver strong clinic performance from day-one.”

“Our first clinic in Canberra opened in March this year and, pleasingly, it has performed in line with expectations. We see great potential in the ACT market, and we’re excited to expand our presence there to two locations following the opening of our Woden clinic.”

“The Charlestown clinic in Newcastle is off to a flying start, recording SILK’s highest opening day of sales on record. We are fortunate to have two experienced nurse injectors with strong existing client bases onboard to lead our newest clinics, and I am confident that they will be successful in their respective markets,” he concluded.

Trading update

SILK also revealed that it remains on track to achieve its upgraded guidance in FY 2021.

Network cash sales is expected in the range of $82 million to $86 million, with pro forma EBITDA forecast to be in the range of $15 million to $16 million.

The post Why the SILK Laser (ASX:SLA) share price is pushing higher 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. 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 Hansen Technologies Limited (ASX: HSN) share price is charging higher on Monday morning.

At the time of writing, the billing technology company’s shares are up 22% to $6.33.

Why is the Hansen share price charging higher?

Investors have been bidding the Hansen share price higher today amid news that the company has received a takeover approach.

According to the release, Hansen has received an unsolicited, preliminary, conditional and non-binding proposal from BGH Capital to acquire 100% of the outstanding shares in Hansen by way of a scheme of arrangement for a price of $6.50 cash per share.

Based on the Hansen share price at the close of play on Friday, this takeover offer represents a 25% premium. This will be reduced by the value of any dividends or other distributions declared, proposed or paid after the date of the offer letter. The price also assumes that Hansen achieves its FY 2021 earnings guidance.

What now?

The Hansen Board has considered the proposal, taking into account the prospects of the company and their aim of maximising value for shareholders. Following this, it has determined that progressing the proposal is in the interests of all shareholders.

The directors of Hansen, other than Andrew Hansen, intend to unanimously recommend the proposal to shareholders, subject to the parties entering into a binding scheme implementation deed and the independent expert’s report.

Whereas Hansen’s Managing Director and CEO, Andrew Hansen, has agreed to work together exclusively with BGH Capital to seek to implement the proposal pursuant to a co-operation agreement. As part of the agreement, Mr Hansen has agreed to vote in favour of any scheme of arrangement and will not vote in favour of any competing proposal during an exclusivity period.

In the meantime, Hansen will continue to keep the market informed of any material developments in accordance with its continuous disclosure requirements.

It has also warned that there is no certainty that the proposal will result in a transaction being put forward to shareholders for consideration. As a result, shareholders do not need to take any action in relation to the proposal at this time.

The post Hansen (ASX:HSN) share price rockets 22% on takeover approach 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 Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. 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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