Tag: Motley Fool

Shares in Odyssey Gold Ltd (ASX: ODY) are wobbling today after the company announced a new discovery and a successful drilling program. At the time of writing, the Odyssey share price is 16 cents, down 3.13%.

This morning, the Odyssey share price broke its 2-day trading halt, opening 5% higher than its previous close. Despite the positive reception, it quickly plunged 11% before returning to trade at 16 cents.

The mineral exploration company released news it has found visible gold at the newly discovered Blue Gino Prospect. it’s also finished its maiden drill program.

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

Odyssey’s new findings

Bottle Dump

This morning Odyessy announced that drill holes from its Bottle Dump Mine – located within its Tuckanarra Project – have returned positive results.

From 30 holes drilled, 28 intersected the mine’s gold-hosting banded iron formation, while only 20 were assayed.

All assays returned gold mineralisation, with results including:

• 6 metres at 2.8 grams of gold per tonne from 118 metres.
• 12 metres at 1.6 grams of gold per tonne from 172 metres.
• 9 metres at 1.1 grams of gold per tonne from 143 metres.
• 7 metres at 1 grams of gold per tonne from 113 metres.
• 4 metres at 3.3 grams of gold per tonne from 124 metres.

Stakewell Project

A maiden diamond drilling program at Odyssey’s Stakewell Project has also returned significant assay results.

The program targeted mineralisation extensions from the historical Kohinoor gold mine.

Assay results from the program include:

• 4 metres at 5.2 grams of gold per tonne 281 metres.
• 4 metres at 1.8 grams of gold per tonne from 289 metres.

Blue Gino Prospect

According to Odyssey, it was unaware of Blue Gino until it recently discovered visible gold within near-surface quartz at the prospect.

Exploration at Blue Gino will be fast-tracked so it can be included in the company’s next phase of drilling.

The Blue Gino prospect is located within the company’s Stakewell Project.

What’s next?

Going forward, Odyssey will be focusing on ground magnetics over the Bottle Dump Mine and the Blue Gino Prospect, as well as a second drilling program.

In addition, it will be continuing to map, test, and develop target areas. This will also include previously unexplored areas.

Finally, the company has recently applied for a new tenement near its two existing projects. It stated the new tenement houses potentially fertile greenstone geology with limited previous exploration.

Commentary from management

Odyssey’s executive director Matt Syme commented on the findings, saying:

The new discovery of high-grade visible gold in a previously unknown quartz vein system at Blue Gino, highlights again the excellent exploration potential which led us to acquire Stakewell and Tuckanarra… We are looking forward to receiving the remaining assay results and the re-mobilisation of the drill rigs to continue unlocking this exciting exploration potential.

Odyssey Gold share price snapshot

Despite today’s instability, the Odyssey Gold share price is having a great year on the ASX.

Currently, the Odyssey share price is 121% higher than it was at the start of 2021.

The company has a market capitalisation of around $72 million, with approximately 532 million shares outstanding.

More reading

• Odyssey Gold (ASX:ODY) share price freefalls 20% despite update
• Why the Odyssey Gold (ASX:ODY) share price is rocketing 118% higher today

The post What’s up with the Odyssey Gold (ASX:ODY) share price today? appeared first on The Motley Fool Australia.

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Despite the rollercoaster ride Bitcoin (CRYPTO: BTC) has been on over the past year, some Australians want at least part of their salary paid in the popular cryptocurrency. A survey of 1,000 Aussies by comparison website Finder found that nearly 25% of the respondents were interested in the idea.

As we enter this brave new world of digital currencies, more and more of our compatriots are willing to take the plunge.

Your salary in cryptocurrency?

According to the Finder survey, more men were interested in being paid in Bitcoin than women. 34% of men said they were willing to receive part of their salary in the cryptocurrency while only 16% of women said the same.

The most popular reason Australians cited for wanting to be paid in Bitcoin was what they perceived as its appreciating value. 14% of all respondents gave this answer. 10% said a Bitcoin payment would help them invest before taxes.

55% of respondents, including 61% of women, said they were not interested in the cryptocurrency. 13% said they thought it was too volatile while a further 8% stated they need access to their pay straight away.

Finder personal finance specialist Taylor Blackburn said cryptocurrencies were becoming more mainstream.

Bitcoin has seen impressive growth in the past year, despite its recent drop and sometimes volatile nature.

With more Australians looking for inflation hedges, yield-bearing assets and alternative investment opportunities, it’s not surprising that this many people are willing to be paid part of their salary in Bitcoin.

The survey also revealed that men who made more than $100,000 a year were the most interested in being paid in Bitcoin. Millennials and Gen Xers were the most receptive generations, with a respective 19% and 22% responding in the affirmative. Just 1% of Baby Boomers agreed.

Blackburn urged Australians to do their research before buying cryptocurrency or agreeing to be paid partly in Bitcoin.

Like with any investment, there are risks involved with cryptocurrencies. But with high risk can come high reward.

Be sure to do your due diligence so you know what you’re getting into.

Bitcoin market value snapshot

Just in the past week, Bitcoin price has bounced between a high of almost US$43,000 and a low of just over US$31,000. The cryptocurrency is currently trading for US$38,000. In percentage terms, that’s a fall of 28% followed by a rise of 23% in just 7 days!

The Chinese government’s recent crackdown on cryptocurrencies and tweets by Tesla Inc (NASDAQ: TSLA) founder Elon Musk are among events that have impacted the Bitcoin price recently.

More reading

• Why 1 analyst thinks the recent crypto collapse is not so different from 2017
• This tech ETF has returned 30% for ASX investors in the past year
• A cracking year so far for Super, and where to for Bitcoin? Motley Fool CIO Scott Phillips on Sunrise
• Here are the US shares ASX investors were buying last week
• Why Tesla stock jumped on Monday

The post 1 in 4 Aussies surveyed want their salary paid in Bitcoin appeared first on The Motley Fool Australia.

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The Afterpay Ltd (ASX: APT) share price and the Zip Co Ltd (ASX: Z1P) share price are both pushing higher on Wednesday morning.

At the time of writing, the buy now pay later (BNPL) providers’ shares are up 3% to $95.44 and 1% to $7.29, respectively. This is despite the release of a bearish broker note out of UBS this morning.

What did UBS say?

According to a note out of UBS, for Afterpay, its analysts have retained their sell rating but improved their incredibly low price target to $37.00. Based on the current Afterpay share price, this implies potential downside of 61% over the next 12 months.

The broker remains bearish on Afterpay due to its belief that its returns could be eroded by increasing competition. Particularly given the low barriers to entry in the BNPL market and the threat from payments giant PayPal.

And while it acknowledges that Afterpay’s product is popular with consumers and that management is executing well, it still feels its platform is easy to replicate.

Another negative that UBS believes the market is overlooking is the capital required to fuel its growth. It points out that PayPal is spending almost $3 billion on marketing compared to $100 million by Afterpay.

What about Zip?

For Zip, the broker has retained its sell rating but cut its price target by 17% to $5.60. Based on the latest Zip share price, this would mean downside of 23% over the next 12 months.

Once again, it feels increasing competition could be a problem and weigh on Zip’s margins. Particularly in the United States, where it believes its QuadPay business is enjoying higher margins that Afterpay.

It also suspects that a US bank could follow the lead of Commonwealth Bank of Australia (ASX: CBA) by entering the BNPL market.

And, as with Afterpay, it feels that market underestimates the amount of capital required to support its growth, especially if competition increases.

It is, however, worth noting that UBS has been negative on the companies for some time, particularly Afterpay. And if you had followed their recommendations, you would have missed out on some incredible returns over the last couple of years.

More reading

• Where to for the A2 Milk and Afterpay share price, and US economic growth? Motley Fool CIO Scott Phillips on Nine’s Late News
• A2 Milk and EML were among the most traded ASX shares last week
• Leading brokers name 3 ASX shares to sell today
• Why the Zip (ASX:Z1P) share price is volatile today
• ASX 200 up, Zip rises, Aristocrat Leisure reports

The post Where next for Afterpay (ASX:APT) and Zip (ASX:Z1P) shares? appeared first on The Motley Fool Australia.

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The IVE Group Ltd (ASX: IGL) share price is on the rise during morning trade.

This follows the release of the print communications company’s business update and earnings guidance for the 2021 financial year.

At the time of writing, IVE Group shares are swapping hands for $1.38, up 11.29%.

How is IVE Group performing?

According to this morning’s release, IVE Group advised ongoing business momentum is continuing its run into the second-half of 2021.

In particular, the 5-year Australian Community Media contract is expected to be fully transitioned into the business by the end of next month. It’s worth around $20 million per year for IVE Group.

As well, the Spotlight Retail Group has now become a significant letterbox distribution client across Australia and New Zealand.

IVE Group’s customer retention also delivered a robust performance, with healthy contract renewals. The most significant deals of note included L’Oréal and Westpac Banking Corp (ASX: WBC). The latter signed on for another 5 years with an estimated contract value of $20 million per annum.

The company revealed its other revenue sectors, such as travel, catalogues, exhibitions and events, are consistent with H1 FY21.

For the end of April, IVE Group declared a cash balance of $95.1 million. This is after the company’s share buyback program ($5.2 million) and interim dividend payout ($10.3 million).

Projected net debt for the upcoming end of this financial year is anticipated to come in at between $90 million and $100 million.

Investors are seemingly upbeat about the company’s performance, sending IVE Group shares significantly higher during Wednesday’s session.

Outlook for FY21

In response to the impacts COVID-19 had on the business, management focused on streamlining its cost base.

As a result, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is forecast to be in the range of $98 million to $100 million.

IVE Group share price snapshot

Over the last 12 months, IVE Group shares have lifted by more than 38%. However, year-to-date performance has gone in reverse, with the company’s shares down by around 4% so far in 2021.

Based on today’s share price, IVE Group has a market capitalisation of roughly $200 million, with approximately 144 million shares outstanding.

More reading

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• Amazon sued by D.C. Attorney General for anticompetitive practices
• Top broker sees value in Aristocrat Leisure (ASX:ALL) share price

The post Why the IVE Group (ASX:IGL) share price is surging 11% today appeared first on The Motley Fool Australia.

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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.

While crypto assets rose to new heights earlier this year, and there are now meme-inspired tokens like Dogecoin (CRYPTO: DOGE) being touted by Elon Musk, the recent crash of crypto assets is not so different from the one in 2017, says one analyst.

Josh Younger, who leads interest rate derivatives strategy at JPMorgan Chase (NYSE: JPM), wrote in a recent research note that he sees similarities between the big sell-off in 2017 and the one that recently occurred in which Bitcoin (CRYPTO: BTC) fell as much as 50% from its high of around $65,000 per token.

Similar to what happened in 2017, Younger noted that investors have steered away from the popular tokens like Bitcoin and Ethereum (CRYPTO: ETH) and into riskier altcoins and stablecoins as well.

Younger wrote that this turn and the negative sentiment “should caution any view that the worst is clearly behind us.” He added that cryptocurrencies are undergoing a “sizable correction” and that he was unsure of whether the correction is done just yet.

Among the many similarities between 2017 and now, Younger certainly sees differences as well. Notably, there hasn’t been the same kind of activity around initial coin offerings as there was in 2017, and there is much more institutional interest in cryptocurrencies now as tokens like Bitcoin are much more ingrained into the traditional financial system. In his research report, Younger wrote:

We continue to see evidence of resilient microstructure in cryptocurrency markets: the volatility spike appears somewhat regionally localized, market depth is down but has not cratered despite these moves, and derivatives pricing has managed to adjust quickly enough to retain a decent fraction of the levered long base … This all argues against the view that we are in the midst [of a] self-reinforcing vicious cycle of price declines — a classic run scenario.

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

More reading

• A cracking year so far for Super, and where to for Bitcoin? Motley Fool CIO Scott Phillips on Sunrise
• Crypto is crashing: Is now the time to invest?
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• Would you pay 10% more for a ‘green Bitcoin’?
• Is cryptocurrency the same as owning a stock?

The post Why 1 analyst thinks the recent crypto collapse is not so different from 2017 appeared first on The Motley Fool Australia.

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

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Nitro Software Ltd (ASX: NTO)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $3.70 price target on this document productivity software company’s shares. Morgan Stanley notes that Nitro has reiterated its guidance at a recent conference and revealed that it continues to experience strong demand for its offering. Its analysts also see opportunities for stronger returns from cross selling and upselling to enterprises. The Nitro share price is currently fetching $2.79.

Rio Tinto Limited (ASX: RIO)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $140.00 price target on this mining giant’s shares. According to the note, the broker acknowledges that iron ore prices have pulled back meaningfully over the last couple of weeks. Despite this, Macquarie remains very positive on miners with exposure to iron ore and is expecting strong free cash flow yields thanks to high prices. This bodes well for dividends in the near future. The Rio Tinto share price is trading at $119.55.

TechnologyOne Ltd (ASX: TNE)

Analysts at Morgans have retained their add rating and lifted their price target on the enterprise software company’s shares slightly to $10.00. This follows the release of TechnologyOne’s half year results earlier this week. Morgans notes that the company delivered a strong result and full year guidance in line with its expectations. In addition to this, based on new customer addition rates and current average spending, it believes TechnologyOne is on a path to achieving its $500 million annualised recurring revenue (ARR) target by FY 2026. The TechnologyOne share price is trading at $9.17 on Wednesday morning.

More reading

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• ASX 200 up 0.6%: TechnologyOne results, BHP & Rio Tinto rise
• TechnologyOne (ASX:TNE) share price on watch after reporting strong first half growth
• 5 things to watch on the ASX 200 on Tuesday
• Are ASX 200 iron ore shares in for a rough ride?

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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There are ASX shares that have kept growing the dividend in recent years and may have the potential to keep increasing the payment.

The below businesses managed to grow the dividend during the COVID-affected year of 2020 and are experiencing high levels of demand, which could lead to rising profit and a bigger dividend in the future.

Bapcor Ltd (ASX: BAP)

Bapcor is the biggest automotive parts business in Australia. In FY20 the business grew its annual dividend by 2.9% to 17.5 cents thanks to an increase of the interim dividend and a final dividend that was maintained. 

In the FY21 half-year result, Bapcor’s board decided to increase the interim dividend by a further 12.5% to 9 cents per share.

The latest dividend increase was funded by a large increase in profitability. Half-year net profit after tax (NPAT) grew by 49.7% to $67.7 million and pro forma earnings per share (EPS) went up 28.9% to 20.7 cents.

Bapcor said that result was driven by growth in revenue, operating leverage and profitability in all business segments. It’s also continuing to progress major projects that will underpin the company’s future success.

One of those projects by the ASX share is the construction of a new large distribution centre in Victoria which will see 13 locations consolidate into one. The retail segment has already successfully transitioned there. It’s expecting an operating expenditure benefit of $10 million in FY23 and a reduction in working capital of $8 million thanks to this change.

The warehouse is 50,000m2 in size and uses ‘goods to person (GTP) technology’. GTP picks 600 lines per hour, compared to 600 lines per day previously. It also comes with improved freight efficiencies, carbon emission reductions and energy utilisation.

It’s looking at the potential to do this type of consolidation in Queensland as well.

Growth in Asia is another promising area. It recently acquired a 25% stake of Tye Soon which has auto parts operations in a number of countries including Singapore, Malaysia, Australia, South Korea, Thailand and Hong Kong.

It currently has a grossed-up dividend yield of 3.4%.  

Brickworks Limited (ASX: BKW)

Brickworks is a diversified property business. It has a number of building products businesses, as well as a 50% stake in an industrial property trust and it owns almost 40% of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

It’s the property trust and Soul Patts shares that drive the Brickworks dividend higher, as the payout is funded from the distributions and dividends from those two assets.

In FY20 Brickworks increased its dividend by 4% to $0.59 per share. That included a 3% increase of the final dividend to $0.39 per share.

In the FY21 interim result, the ASX share increased the half-year dividend by a further 5% to $0.21 per share.

The industrial property trust is benefiting from the significant increase in demand for logistics.

Brickworks managing director Lindsay Partridge said:

The COVID-19 pandemic has only accelerated industry trends towards online shopping and this is fuelling demand for our prime industrial property. We are seeing increasing interest from our customers for more advanced, high-value facilities. An example of this trend is the state-of-the-art Amazon facility, currently under construction and due to be completed in September.

The business is seeing a recovery in both the Australian and US construction markets.

Brickworks is expecting further cashflow growth as property trust facilities are completed that results in gross rent within the trust increasing by over 40%, with significant further land remaining for development.

At the current Brickworks share price, it has a grossed-up dividend yield of 4.1%.

More reading

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• 2 excellent ASX 200 blue chip shares to buy
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• Which ASX 200 shares withstood today’s selloff?
• 3 reasons why the Brickworks (ASX:BKW) share price is a buy

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Shares in ALS Ltd (ASX: ALQ) are in rocketing this morning after the company released its full-year results . At the time of writing, the ALS share price is trading for $11.80, up 8.26%.

ALS’ results for the year ending 31 March 2021 show a drop in both revenue and expenses, landing the company in the green.

ALS is a global testing, inspection, and certification company. It works within a number of sectors including agriculture, pharmaceuticals, and construction.

Let’s take a look at the results released by ALS this morning.

Full year results

For the year ending 31 March 2021, ALS recorded earnings before interest, tax, depreciation, and amortisation (EBITDA) of $421.1 million. That’s 25% more than last year’s EBITDA of $326.1 million.

ALS also announced a fully franked interim dividend of 8.5 cents per share and a final, 70% franked, dividend of 14.6 cents. Shareholders will have their dividend distributed on 5 July.

The year saw a drop in both revenue and expenses for ALS. The company’s revenue was $92.5 million less than the previous comparable period – it brought in around $1.76 billion. ALS said the fall in revenue was mainly due to the Australian dollar gaining value against other currencies.  

ALS’ expenses for the period came to around $1.37 billion, down from approximately $1.53 billion it forked out through the previous 12-months.

Combined, its revenue and expenses saw ALS finish the year with a $174.1 million profit.

Its earnings per share through the period was 35.78 cents – 35% better than last year.

ALS now has $611.1 million worth of assets, including $168.6 million of cash in the bank.

The company currently has $243.6 million in bills that need to be paid, as well as holding a group net debt of $613.6 million. It’s spent the last 12 months paying off a substantial portion of that debt – $186.5 million worth.

ALS also refinanced it debt earlier this month. Now, it uses a range of “geographically diverse” financial institutions to hold its multi-currency debt facilities.

Finally, ALS stated it’s committed to repaying COVID-19 related subsidies given to it from governments in countries where such payments exist.

Commentary from management

ALS’ chair Bruce Phillips commented on the company’s results, saying:

This is a very strong performance given the heavy impact of the COVID-19 pandemic. The swift actions from management to align the cost base with client demand and strengthen the balance sheet prepared the Group well to capitalise on the improved trading conditions in the second half of the year and advance our strategic objectives.

ALS share price snapshot

The ALS share price is having a great year so far on the ASX.

Currently, it’s gained 11.45% year to date. It’s also 54.61% higher than it was this time last year.

The company has a market capitalisation of around $5.2 billion, with approximately 482 million shares outstanding.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• The ALS (ASX:ALQ) share price is flying on news of debt refinancing

The post The ALS (ASX:ALQ) share price is rocketing on its latest results appeared first on The Motley Fool Australia.

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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.

Amazon (NASDAQ: AMZN) is coming under fire from a well-armed legal figure. Karl Racine, the attorney general for Washington, D.C., has sued the company for engaging in anticompetitive behavior. This marks the first time that the massive retailer has been hit by an antitrust lawsuit in the U.S.

It’s part of a pattern, though. Amazon and other tech giants have lately come under increased scrutiny by lawmakers, which has led to a raft of antitrust suits being brought against them. 

The attorney general claims in the suit that the policies that govern Amazon’s relationships with third-party merchants prohibit those sellers from offering lower prices on non-Amazon sites. This makes the prices artificially high and helps the big retailer amass monopoly power. 

“Amazon is increasing its dominant stronghold on the market and illegally reducing the ability of other platforms to compete for market share,” Racine told Bloomberg.

Amazon fired back, with an unnamed spokesperson saying in a statement, “The D.C. Attorney General has it exactly backwards — sellers set their own prices for the products they offer in our store.”

Amazon added, “like any store we reserve the right not to highlight offers to customers that are not priced competitively.”

As reported by Bloomberg, Racine said he was unaware if other attorneys general would join the lawsuit — a common practice with suits against high-profile companies. He also said his case isn’t being coordinated with the Federal Trade Commission, the federal agency tasked with enforcing antitrust law.

Investors don’t seem too spooked by the lawsuit. On Tuesday, they pushed Amazon’s shares up by 0.4% while the S&P 500 slumped by 0.2%.

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

More reading

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• Learning to love share price falls

The post Amazon sued by D.C. Attorney General for anticompetitive practices appeared first on The Motley Fool Australia.

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

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The Aristocrat Leisure Limited (ASX: ALL) share price has been a strong performer in May.

Since the start of the month, the gaming technology company’s shares have risen just under 11%.

This means the Aristocrat Leisure share price is now up an impressive 31% year to date.

Why is the Aristocrat Leisure share price on form?

Investors have been bidding the Aristocrat Leisure share price higher this month following the release of its first half update.

For the six months ended 31 March, the company reported a 1% decline in revenue to $2,229.7 million but an 18.4% increase in net profit to $362.2 million.

Management advised that the company’s growth continues to be underpinned by a sustained investment in game design, development and technology.

Aristocrat made a $242.7 million investment in Design & Development (D&D) in the period, representing 10.9% of group revenue. It notes that this is in line with its refreshed growth strategy and commitment to exceptional market-leading product portfolios, customer engagement, people, talent and culture.

Is it too late to invest?

One leading broker that still sees value in the Aristocrat Leisure share price is Citi.

According to a note this week, the broker has retained its buy rating and lifted its price target to $46.60.

Based on the current Aristocrat Leisure share price of $41.02, this implies potential upside of 13.5% over the next 12 months.

What did the broker say?

Citi was pleased with its performance during the first half and particularly its Digital margins.

It commented: “Aristocrat is gaining share and seeing improving rates of profitability in both the land-based and digital markets. Our earnings outlook is largely unchanged, with small downgrades to FY21e (-1.7%) and FY22e (-1.1%) on higher rates of reinvestment in D&D and UA but upgrade the longer-term outlook (FY23e +2.3%).”

“Digital margins are the key source of upside surprise vs. consensus in our view, given the monetisation of RAID and the shift to Plarium Play. Aristocrat’s balance sheet remains undervalued given the capacity it provides for acquisitions and reinvestment. We increase our target price to $46.60 given the improving outlook for Digital margins and the pace of the North American and ANZ land based recovery,” Citi concluded.

More reading

• ASX 200 up 0.6%: TechnologyOne results, BHP & Rio Tinto rise
• Is the Aristocrat Leisure (ASX:ALL) share price in the buy zone after its results?
• ASX 200 up, Zip rises, Aristocrat Leisure reports
• Aristocrat (ASX:ALL) share price rises on half-year results
• ASX 200 up 0.1%: Aristocrat results, Zip’s global expansion continues

The post Top broker sees value in Aristocrat Leisure (ASX:ALL) share price appeared first on The Motley Fool Australia.

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