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The MyState Limited (ASX: MYS) share price is in a trading halt today after the company announced a capital raising.

As such, the MyState share price will remain frozen at Friday’s closing price of $4.85 to enable the placement to be completed. Trading is expected to resume on Wednesday.

The financial and fund management company also detailed its strategy and outlook in today’s release. Let’s take a look.

MyState capital raising

MyState today announced it aims to “rapidly accelerate” its growth strategy through a placement to raise up to $80 million. The placement will comprise a $20 million institutional underwritten offer and a $60 million entitlement offering to all eligible shareholders. All shares under the capital raise will be issued at $4.30.

The company also outlined its new growth strategy for the coming years. MyState wants to bring in new customers by creating better experiences for them on its current platform. The company said it was turning to a more digital and intuitive platform to meet this goal.

It is also aiming to simplify operations while expanding its distribution network to enhance both productivity and distribution.

With these priorities, the company has outlined four objectives to be achieved by 2025:

• Accelerated home loan and retail deposit growth over the medium term, while maintaining asset quality.
• Improved operating leverage.
• Return on Equity accretion as capital is deployed.
• And sustainable growth in the company’s EPS over the medium term.

Management comments

MyState chair Miles Hampton explained:

The capital raising will support the business to pursue a significant acceleration of its growth strategy. Since 2016, MyState has increased its home loan book by 43%. We now see an opportunity to build on that success and substantially increase our growth trajectory.

This is important as it helps us to remain competitive and provide the services that our customers expect whilst improving shareholder value.

Trading update and guidance

In MyState’s trading update and FY21 guidance also released today, the company advised it was well ahead of the prior corresponding period for the 10 months ending 30 April.

Highlights include a net profit after tax increase of 17.1%, and earnings per share (EPS) up 16.2%.

In terms of guidance, the company said it was on track to deliver growth in operating profit of 11%-14%.

More reading

• The Commonwealth Bank (ASX:CBA) share price hits new record highs
• Codan (ASX:CDA) share price tops performance on ASX Tech Index in 2021
• Morgans picks small cap ASX shares with near-term share price catalysts
• The BHP (ASX:BHP) share price keeps falling, could it be an opportunity?
• This beaten-up sector has some of the top performing ASX shares this year

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Commonwealth Bank of Australia (ASX: CBA) shares are powering ahead today. The CBA share price is up 1.1% in afternoon trading.

At the current price of $99.09 per share, Commonwealth Bank shareholders are only 91 cents away from seeing the stock crack the psychological $100 mark.

If CBA’s share price can hold onto the intraday gains, or add to them, today will mark yet another new record closing high for the big 4 bank.

CBA share price record

It took more than 7 years, but last week the CBA share price hit $98.84 per share. That finally saw shares surpass their previous record high, set in March 2015.

At the time (March 2015) analysts were eagerly predicting that CommBank would become the first ASX share to crack the $100 mark. While that honour fell to CSL Limited (ASX: CSL), CBA could join the 3-figure share price club any day now.

Today’s gain, outpacing the 0.3% increase posted by S&P/ASX 200 Index (ASX: XJO), sees the CommBank share price up 68% over the past 12 months. And the Commonwealth Bank has continued to outperform in 2021, with shares up more than 18% year-to-date.

On Friday the bank announced it will raise interest rates on its 3 and 4-year fixed-term owner-occupier loans by 0.05% and investor only loans by 0.10%, potentially adding to its bottom line.

Now investors will be looking to see if management gives any sign of upping the dividend payments alongside its appreciating capital value.

At the current price of $99.09 per share, CommBank pays an annual dividend yield of 5.0%, fully franked. The market cap stands at $174 billion.

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• ASX 200 Weekly Wrap: ASX whipsaws in volatile week
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• The ANZ (ASX:ANZ) share price leads the ASX 200 banks this week

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Shares in Codan Ltd (ASX: CDA) are leading the S&P/ASX All Technology Index (ASX: XTX) this year. The Codan share price has gained almost 60% in 2021 so far.

At the time of writing, shares in Codan are trading at $17.73, gaining 3.02% today. At the start of 2021, shares in the company were swapping hands for $11.28.

By contrast, the All Tech Index has fallen almost 10% since the beginning of the year.

Codan designs and manufactures communications and technologies designed for use in tough conditions. It produces radios, metal detectors, and mining automation systems. The company provides these to a number of users, including ‘Five Eyes’ military and intelligence agencies.

Codan has announced a number of acquisitions this year, as well as posting strong financial results. The company’s share price also managed to dodge the US-driven tech sell-off in March.

Let’s take a closer look at what Codan has been up this year.

Terrific 2021 to date

The first we heard from Codan this year was in mid-February.

Then, the company announced it had acquired US-based Domo Tactical Communications (DTC). DTC produces high bandwidth wireless communications and specialises in multiple-input multiple-output (MIMO) mesh networks.

The news saw the Codan share price hit what was then an all-time high of $13.64.

Two days later, Codan released strong results for the first half of the 2021 financial year.

On 1 April, Codan announced another acquisition, this time of critical communication technologies manufacturer Zetron Inc.

The news led its share price to close 9.5% higher than the previous day’s trade.

Codan share price snapshot

Codan shares have been having more than just a great few months on the ASX.

Since this time last year, the Codan share price has gained around 160%.

The company has a price-to-earning (P/E) ratio of 41.67 and it pays a dividend.

Codan has a market capitalisation of around $3 billion, with approximately 180 million shares outstanding.

More reading

• Codan (ASX:CDA) share price wobbles on news of a completed acquisition

The post Codan (ASX:CDA) share price tops performance on ASX Tech Index in 2021 appeared first on The Motley Fool Australia.

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The market looks caught in a fairly tight trading band since April as bulls and bears look to see who blinks first.

In this climate, a good way to pick ASX shares to buy is to target those with positive near-term catalysts, according to Morgans.

The broker’s advise comes as the S&P/ASX 200 Index (Index:^AXJO) bounces between both sides of breakeven today. The index has traded in a less than 200-point band in the past seven weeks.

Target ASX shares with near-term catalysts

Investors are torn between the strong earnings outlook for ASX shares and fears that share prices are primed for a big pullback.

As I reported last week, Morgans believes you should ignore the jitters and use any market weakness as a buying opportunity.

The broker highlighted some ASX 200 shares to buy as it expects them to release positive news in the near-term.

It expects that these good updates will propel their share prices even in the face of a broader market sell-off.

ASX small cap shares that could outperform in the near-term

But there are a number of little known ASX shares that many have overlooked that are also in this basket.

The first is the Kina Securities Ltd (ASX: KSL) share price. The small cap Papua New Guinea broker has around a 60% upside to Morgans’ share price target and you may not have to wait long for the Kina Securities share price to surge towards fair value.

“We expect closure of the WBC Asia Pacific acquisition in September to be a material catalyst, forcing the market to reconsider strong earnings growth into FY22,” said Morgans.

Dividend restart to light this ASX small cap

Another lesser followed ASX share is the Dalrymple Bay Infrastructure Ltd (ASX: DBI) share price.

Morgans reckons there is a close to 20% upside for the coal export port operator, although ESG conscious investors may shun shares with the “C” word.

But the broker believes that any news of the company restarting its quarterly dividends could light a fire under the Dalrymple Bay share price. This could come as June.

Looking for the X-factor

Those looking for more bang for their buck may want to consider the Micro-X Ltd (ASX: MX1) share price.

The X-ray technology developer that’s used for security and medical screening could see its share price surge in the coming weeks or months.

Morgans expects Micro-X to announce that it has secured European regulatory approval for its technology in the current quarter. There is a close to 80% upside for the Micro-X share price to the broker’s price target.

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• 2 quality ASX 200 tech shares that might be buys
• 5 things to watch on the ASX 200 on Monday

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Over the last couple of weeks the BHP Group Ltd (ASX: BHP) share price has been falling and it has continued that downward trend further today. The resources stock is down 2% at the time of writing.

Since 10 May 2021, BHP shares have fallen by almost 10%. Considering the ASX market capitalisation of BHP is currently approximately $140 billion, a 10% drop is a hefty drop in dollar terms.

What is the latest news?

In the shorter-term, investors pay attention to BHP’s quarterly production numbers and the changing commodity prices.

Iron ore is the biggest profit generator right now. Whilst the iron ore price is a bit lower than the last week or two, it’s still above US$200 per metric tonne which is almost the highest it has been over the last five years.

A few weeks ago the business revealed how it performed in the performed in the three-month period to 31 March 2021.

Petroleum production was up 7% to 25.4 million barrels of oil equivalent (MMboe). Higher volumes reflect the increased Shenzi working interest (after completion in November 2020) and the impacts of Hurricanes Delta and Zeta in the Gulf of Mexico in the prior quarter.

Copper production was down 9%. Lower volumes were primarily a result of decreased throughput at Escondida, reflecting the impact of a reduced operational workforce due to the continuation of COVID-19 restrictions and lower concentrator feed grade.

Iron ore production was down 4% to 59.9 Mt. Lower volumes at Western Australia iron ore (WAIO) reflects weather impacts and planned ore handling plant and stacker maintenance at Newman, partially offset by improved car dumper performance.

Metallurgical coal saw production rise 1%. Queensland coal volumes were in line with the prior quarter as operations continue to be impacted by wet weather events.

Energy coal saw a large 34% increase in production thanks to higher volumes at Cerrejon as a result of a strike in the prior period, partially offset by lower volumes at New South Wales energy coal (NSWEC) with significant wet weather impacts and increased washed coal in response to reduced port capacity following damage to a shiploader at the Newcastle port.

Nickel saw production volumes fall 15% as a result of planned maintenance undertaken at the Kwinana refinery.

Is the lower BHP share price an opportunity?

BHP itself is looking to growth opportunities to help continue the strong performance it is experiencing.

The CEO of BHP, Mike Henry, said:

We are reliably executing our major projects, bringing on new supply in copper, petroleum and iron ore. The Spence Growth Option and Samarco are ramping up and West Barracouta, in petroleum, started production this morning. First production from petroleum’s ruby project is expected in the coming weeks and South Flank, with its higher grade and lump proportion, is on track to begin production in the middle of the year.

The brokers at Macquarie Group Ltd (ASX: MQG) are still confident about BHP shares. It noted that BHP said last week that the ASX miner will soon announce first production at the 80 million per annum South Flank iron ore project. Macquarie is expecting very strong profit in the FY21 second half. The broker has a price target on the BHP share price of $57 over the next 12 months. That suggests a possible upside of around 20%.

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• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week

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ASX shares in the aged care sector have emerged as top performers this year after several years of decline.

Aged care operators including Estia Health Ltd (ASX: EHE) and Japara Healthcare Ltd (ASX: JHC) have surged an impressive 48% and 75%, respectively, year-to-date.

Why ASX aged care shares dipped to multi-year lows

The aged care industry has faced a number of regulatory and funding headwinds, raising concerns over weaker earnings and rising debt levels.

Aged cares shares first plunged in late 2016 after the government announced new service fee guidelines for residential aged care customers. This meant that several revenue sources would not be permissible under the new legislation. Between 26 August and 5 September 2016, the Estia share price plunged from $4.72 to as low as $2.08.

Two years later, the royal commission investigation into the aged care sector took another jab at these beaten up ASX shares.

The March COVID-19 sell-off last year added further insult to injury, which saw the Estia share price briefly trade for less than $1.

On 2 March this year, the final results of the royal commission were released — you can find a summary of recommendations and responses here.

What’s ahead for ASX aged care shares?

The Federal 2021/22 budget will see $17.7 billion of funding flow into the aged care sector over the next five years. The funding will address a number of royal commission recommendations including a $650 million investment to grow and upskill the aged care workforce and requirements that staff spend at least 3 hours and 20 minutes a day with each aged care resident from 2023 onwards.

Despite the Estia and Japara share price surging a respective 48% and 75% year-to-date, the recovery story is still in its early days. Both companies continued to deliver net losses during February half-year results, driven by factors including lower occupancy rates and shareholder class action settlements.

Looking forward, Japara’s half-year results flagged ongoing COVID-19 uncertainties and that the “funding environment is unclear and occupancy, although stabilising, remains weakened”.

While the road ahead could continue to be challenging for ASX aged care shares, we’re seeing the share prices of some of the sector’s companies emerge as top performers, bouncing strongly off multi-year lows.

More reading

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• Why Afterpay, CSR, Electro Optic Systems, & Estia Health are storming higher
• Estia Health (ASX:EHE) share price dips on class action settlement
• Estia Health (ASX:EHE) share price jumps 7% to new 52-week high

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The A2 Milk Company Ltd (ASX: A2M) share price is under pressure again on Monday.

At one stage today, the fresh milk and infant formula company’s shares were down 3.5% to $5.36.

When the a2 Milk share price hit that level, it was down a very disappointing 73% from its 52-week high.

Where next for the a2 Milk share price?

Given the sharp decline in the a2 Milk share price from its high, investors will no doubt be wondering where it is heading next.

However, unfortunately, opinion remains incredibly divided even after this sizeable decline.

The bears over at Credit Suisse believes the company’s shares could still fall further and have slapped a sell rating and $5.00 price target on them.

Citi and Macquarie also have sell ratings on its shares with price targets of $5.85 and $5.60, respectively.

Sitting on the fence is Morgan Stanley. Its analysts have an equal-weight rating and $7.10 price target. Though, with this price target implying potential upside of 32%, an upgrade to a buy rating may not be far away if its performance doesn’t deteriorate further.

The bulls

Despite its abject performance, which has led to four earnings guidance downgrades in FY 2021, there are a few brokers that have bullish views on the a2 Milk share price.

Morgans currently has an add rating and $6.65 price target and, last week, UBS put a buy rating and NZ$13.50 (A$12.50) price target on its shares. The latter rather optimistically implies that the a2 Milk share price could double over the next 12 months.

And finally, analysts at Bell Potter have a buy rating and $8.50 price target on the company’s shares.

What now?

Which broker’s recommendation ultimately proves accurate will entirely depend on the success of a2 Milk’s inventory rebalance and the review of its growth strategy and executional plans to respond to changes in the lucrative China market.

But given the company’s failure to turn around its performance numerous times in FY 2021, the near term remains very uncertain. This helps to explain why brokers have such mixed views on the company right now.

More reading

• Synlait (ASX:SM1) share price on watch after guidance downgrade
• Top brokers name 3 ASX shares to buy next week
• Why is the A2 Milk (ASX:A2M) share price up 7% today?
• Why a2 Milk, EML Payments, Webjet, & Xero shares are pushing higher
• ASX 200 down 0.25%: Kogan sinks, EML & A2 Milk jump

The post Where next for the a2 Milk (ASX:A2M) share price? appeared first on The Motley Fool Australia.

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Real estate investment trusts (REITs) can be overlooked in the face of popular dividend and growth sectors including materials, financials and tech.

However, sectors such as materials and tech have come under fire in recent weeks, driven by factors such as rising inflation expectations and China taking aim at commodity prices.

REITs with portfolios focused on highly sought after assets such as healthcare accommodation, industrial parks and childcare have been a stable movers amidst a volatile market. Many large and mid cap names not only pay stable and reliable dividends, but eyeing 52-weeks highs.

Arena REIT (ASX: ARF)

Arena REIT’s investment strategy is to invest in long duration properties in sectors such as childcare, healthcare, education and government to generate consistent yield for investors with earnings growth prospects over the medium- to long-term.

The Arena REIT share price managed to top its pre-COVID high of $3.39 this month, hitting a record high of $3.52 on Monday. The company declared an FY21 distribution guidance of 14.8 cents per share or a dividend yield of approximately 4.2%.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure is another stable moving REIT with a focus on childcare properties. Its shares have nudged 2% higher year-to-date, with most of its gains achieved during the COVID-19 rebound last year.

In the company’s half-year results, it announced an upgrade to its FY21 distribution from 15 cents per share to 15.7 cents. At today’s prices, this represents a yield of approximately 4.75%.

Centuria Industrial REIT (ASX: CIP)

Centuria is one of Australia’s largest domestic pure play industrial REITs with quality tenants including Woolworths Group Ltd (ASX: WOW), Telstra Ltd (ASX: TLS) and Australia Post.

Its share price has climbed to 52-week highs around $3.50, within reach of its pre-COVID highs of $3.75. The company has announced a number of recent positive updates including a Woolworths lease extension, $88.8 million Dandenong South industrial estate development and $27 million Arndell Park distribution centre acquisition.

While targeting a number of growth opportunities, the company announced an FY21 distribution guidance of 17 cents per share, which equates to a yield of approximately 4.8% at today’s prices.

Goodman Group (ASX: GMG)

Goodman Group is one of the largest ASX-listed REITs with a focus on high quality, in-demand properties including warehouses, large scale logistics facilities and business parks.

In the company’s third quarter update, it reaffirmed its forecast FY21 operating profit of $1.2 billion, representing an earnings per share growth of 12% on FY20. It also reaffirmed its full year distribution of 30 cents per share, representing a yield of 1.50% at today’s prices.

After a brief sell-off between late December 2020 and March 2021, Goodman shares are back on track and eyeing previous highs of $20. Goodman shares are currently fetching $19.23.

More reading

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• ASX 200 Weekly Wrap: ASX whipsaws in volatile week
• 2 attractive ASX dividend shares that could be a buy

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The Kogan.com Ltd (ASX: KGN) share price has more than halved in 2021. Shares in the company opened the year at around $19.42. At the time of writing, Kogan shares are trading at just over 50% of this level at $9.85.  

Last year, Kogan was a market darling as the COVID-19 pandemic forced consumers to flock online. As a result, shares in the online retailer surged to all-time highs of around $25 per share by October 2020.

So why has the Kogan share price fallen from grace?

Kogan cites growing pains in recent update

In its most recent market update, Kogan highlighted how the company has struggled to keep up with demand.

In a trading update released to the market last Friday, Kogan informed shareholders it had revised its earnings predictions for the current financial year. The company cited a number of operational and logistical challenges as reasons for the revised guidance.

As a result, Kogan warned investors that earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to come in at between $58 million and $63 million for the financial year.

The revised guidance was between $7 million and $12 million below consensus forecasts of around $70 million in EBITDA. In response, investors dumped their holdings, sending the Kogan share price plummeting to a 52-week low.

What else has caused the Kogan share price to plunge?

In 2021, the initial catalyst that sent Kogan shares nosediving can be traced back to late January. Following the release of a business update for the first half of FY21, Kogan reported a slower rate of growth than expected. Even then, Kogan cited warehouse capacity and logistical issues for the result.

The second catalyst prompting investors to sell their Kogan shares was the company’s first-half report. For the six months ended 31 December, Kogan reported a 97.4% increase in gross sales to $638.2 million and an 88.6% jump in revenue to $414 million. Despite the seemingly strong results, investors remained largely unimpressed.

Outlook

Arguably, Kogan’s inventory issues are being exacerbated by its aggressive expansion strategy. Company management noted in its Friday update that the business practically doubled in size during the first half of FY21 following a surge in consumer demand. As a result, Kogan has had to rapidly expand its inventory resulting in excess stock and increasing warehouse costs. However, the company also noted that it has learnt valuable lessons on how to better scale operations.

But investors may not be as convinced. According to the most recent data from ASIC, Kogan shares are among the most shorted on the ASX with a 10.1% short interest.

More reading

• Why Corp Travel, Domino’s, Kogan, & Zip shares are storming higher
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• ASX 200 Weekly Wrap: ASX whipsaws in volatile week
• These were the worst performers on the ASX 200 last week
• ASX 200 rises, Kogan sinks, EML soars

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The Keytone Dairy Corporation Ltd (ASX: KTD) share price has broken its downward trend to lift in early-afternoon trade.

This follows the dairy manufacturer’s update on sales and purchase orders received from Walmart (China) Investment Co.

At the time of writing, the Keytone share price is swapping hands for 13.5 cents a pop, up 3.8%.

Sales accelerate

Investors are buying up positions in Keytone shares after the company recorded strong sales for 2021.

In its release, Keytone advised sales and forward orders have topped NZ$3.3 million from Walmart China. This represents a three-fold increase for the first five months of 2021 when compared to this time last year.

The company attributed the robust performance to its whole and skim milk powder for Sam’s Club China. The popular product has been a hit with Chinese consumers due to the company’s strategic partnerships and accredited facilities.

In addition, the company has booked NZ$1.4 million of further orders to be delivered in the third quarter of 2021.

Keytone CEO, Danny Rotman touched on the company’s progress, saying:

Our international track record, strategic partnerships and growth in powdered dairy continues, underpinned by our fully licensed and accredited facilities in New Zealand. The strong growth is testament to the efficiency and quality of our facilities and team in New Zealand.

We are continually seeking new business opportunities with our existing clients, forging new relationships with others and will update the market with new material contract wins and forward orders as they come to hand.

About the Keytone share price

Today’s gain will be a relief to shareholders, as the Keytone share price has halved in value over the past 12 months. Shares in the company have also fared poorly in year-to-date performance, down more than 40%.

Based on valuation grounds, Keytone presides a market capitalisation of roughly $38 million, with approximately 273 million shares on issue.

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