Tag: Motley Fool

The Tyro Payments Ltd (ASX: TYR) share price is lifting after the company announced 2 positive updates today.

At the time of writing, the Tyro share price is trading 5.26% higher at $3.60. 

What’s driving the Tyro share price today? 

COVID-19 trading update 

Tyro has remained committed to providing weekly transaction value updates for greater transparency regarding the impact of COVID-19 on its business. 

In today’s update, the company revealed a 102% date-on-date increase in transaction values between 1 May and 7 May from $0.263 billion to $0.531 billion. From a year-to-date perspective, transaction values have increased 21% from $17.45 billion to $21.12 billion. 

May’s doubling of transaction values likely reflects the cycling of weak COVID-19 driven comparables from a year ago. 

Tyro acquires Medipass 

Alongside the regular COVID-19 trading update, Tyro announced its acquisition of health fintech, Medipass, for $22.5 million. The acquisition’s total consideration is expected to comprise 60% cash and 40% Tyro shares, with the completion set to occur this month. 

Medipass has created a digital health payment platform allowing healthcare providers to accept healthcare payments without the need for a terminal. Its multi-sided platform links healthcare funders, healthcare providers and patients to streamline the claims approval and payment acceptance process. 

Medipass currently integrates with 17 cloud-based practice management and bookings systems, with approximately 4,400 active healthcare providers working with it. 

Tyro believes Medipass’ functionality and clientele complement its existing health vertical and integrated practice management systems. The company will integrate Medipass’s digital health payments platform with Tyro’s card-present health solution to create a unified health payments offering. This solution will deliver both card-present and non-card present transactions. 

Both the COVID-19 trading update and telehealth acquisition appear to be well received by the market, with the Tyro share price making up for lost ground after falling almost 10% last week. 

Management commentary 

Commenting on the acquisition, Tyro CEO and managing director Robbie Cooke said: 

Our combination with Medipass is a significant step in building out Tyro’s core health vertical and is consistent with our strategy to build our offering through acquisition where there is a distinct opportunity to gain scale and to enhance our position in a key vertical.

Making a comeback

Just when things started to get better for the Tyro share price after the initial COVID-19 selloff last year, its business was hit with a significant terminal outage. This, in turn, instigated a scathing short-seller attack from Viceroy Research in January this year. 

Its shares have only recently managed to recoup the losses from those negative events. 

More reading

• Why is the Tyro Payments (ASX:TYR) share price dropping today?
• Why Bubs, IDP Education, ResMed, & Tyro shares are dropping today
• The Tyro Payments (ASX:TYR) share price has gained 30% in 12 months
• Why Bubs, Carbon Revolution, Paradigm, & Tyro shares are sinking
• Tyro (ASX:TYR) share price drops despite April transaction values surging 155%

Kerry Sun 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 Tyro Payments. 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 REA Group Ltd (ASX: REA) share price is climbing higher today, up 2.13% to $159.38 at lunchtime on Monday. 

This follows a fairly positive reaction after releasing its third quarter results last Friday, with REA Group shares finishing the week in the green, up 1.4% for the session.

Alongside Goldman Sach’s review of REA shares, here’s what other big brokers are thinking. 

Big brokers weigh in on the REA share price 

Credit Suisse 

REA’s third quarter results came in slightly ahead of Credit Suisse’s estimates, largely driven by better-than-expected growth in residential listings. 

More recently, the Australian property market has experienced a significant deficit in listing volumes. CoreLogic reports that total listings have remained tight in April due to the strong absorption from sales, leaving listings volume 26% below the 5-year average. 

Credit Suisse expects a rebound in residential listing volumes, forecasting a 20% year-on-year increase in volume in the second half. The broker expects the company’s earnings to continue to benefit from a cyclical recovery in residential listings and developer volumes. 

Credit Suisse increased its REA share price target from $136.70 to $148 with a neutral rating. 

UBS 

UBS was another broker that was surprised by REA’s 13% increase in revenues and 10% increase in earnings for the March quarter. Looking ahead, the broker expects the June quarter to cycle a significant jump in year-on-year listings. 

The broker retained its neutral rating for the REA share price but provided the most upbeat target price of $160. 

Morgans 

It was a mixed reaction from Morgans as the strong rebound in domestic listings was offset by slightly increased cost growth and lower depth penetration.

The broker was hold rated on REA shares, citing that its current valuation adequately balances both short and long term growth. The broker increased its target price from $131 to $139.4. However, this represents a downside of more than 10% compared to the current REA share price. 

More reading

• Top broker tips REA Group (ASX:REA) share price to rise 20%
• ASX 200 rises, Macquarie falls, Magellan declines
• How shares with massive PE ratios can be cheap
• ASX 200 up 0.45%: Macquarie full year results & REA Group Q3 update
• REA (ASX:REA) share price on watch after third quarter results

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA 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.

Cryptocurrency has been making waves in the investing world, and many investors may be wondering whether it’s time to jump on the crypto bandwagon.

While it’s true that some cryptocurrencies, such as Bitcoin (CRYPTO: BTC), have experienced phenomenal returns over the past few months, that doesn’t necessarily mean they’re a safe investment.

Cryptocurrency is highly speculative at this point, and nobody knows what kind of staying power it has. Although it could change the world, it could just as easily crash and burn. Right now, it’s too soon to tell what the future has in store for cryptocurrency.

In addition, crypto is famous for its volatility. Bitcoin lost roughly 80% of its value at one point, and since the beginning of the year, it has experienced a roller coaster of ups and downs. Not all investors have the stomach for that type of turbulence.

However, if you’re eager to invest in cryptocurrency but want to limit your risk, there’s another option: crypto stocks.

Cryptocurrency vs. crypto stocks

When most people think of investing in cryptocurrency, they think of investing directly in the currency itself. But it’s possible to invest in crypto without actually investing in crypto.

A crypto stock is a company that is involved in cryptocurrency in some way. That could mean the company offers crypto as a form of payment, it may have invested in crypto, or maybe it builds the technology behind digital currencies.

Take Tesla, for example. The company announced this year that it made a $1.5 billion investment in Bitcoin, and it also accepts Bitcoin as a form of payment. 

NVIDIA is another example of a crypto stock. The tech company designs and builds graphics processing units (GPUs), which are often used in the creation of cryptocurrency.

If you were to invest in Tesla or NVIDIA, you wouldn’t be investing in cryptocurrency directly. However, if crypto does become mainstream and is adopted as a standard form of currency, these companies could benefit from it. As a result, your investments could thrive.

Crypto stocks are generally safer than investing in cryptocurrency directly. This is because crypto is only a portion of these companies’ businesses. If digital currencies fail to see long-term success, the companies themselves likely won’t crash along with them.

Should you invest in crypto stocks?

Although crypto stocks may be less risky than investing in cryptocurrency itself, there are still a couple of things to consider before investing.

First, look at the company as a whole to decide whether it’s a solid investment. In other words, don’t invest in a stock only because of the cryptocurrency factor. The best investments are the companies that have solid fundamentals and are likely to remain strong over the long term. If they happen to be invested in crypto as well, that’s an added bonus.

Also, make sure you have a well-diversified portfolio if you decide to invest in crypto stocks. Building a diversified portfolio is a smart move regardless of where you choose to invest, but it can help limit your risk even further if your crypto stocks don’t perform well.

Investing in crypto stocks can be a smart way to diversify into cryptocurrency while limiting your risk. Just be sure you’re choosing your investments wisely and opting for stocks that have strong underlying fundamentals. By investing for the long term, you’re more likely to see success with crypto stocks.

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

More reading

• Dogecoin price drops by a third after Elon Musk calls it a “hustle” on comedy show
• ASX 200 Weekly Wrap: Bank shares push ASX 200 towards all-time high
• Ethereum breaks new record highs as Bitcoin slips…which one to buy?
• Move over Bitcoin! Ethereum prices are rising fast
• It’s not just Bitcoin (CRYPTO:BTC) driving ASX investor interest

Katie Brockman 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 Bitcoin, NVIDIA, and Tesla. The Motley Fool Australia has recommended NVIDIA. 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.

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The Pendal Group Ltd (ASX: PDL) share price is frozen today at the company’s request.

This comes as the ASX-listed global investment manager announced a major acquisition before market opening today.

We take a look at the details, and Pendal’s newly released half year results, below.

What acquisition did Pendal announce this morning?

The Pendal share price is in a trading halt after the company reported it had entered into an agreement to acquire 100% of Thompson, Siegel & Walmsley LLC (TSW) for US$320 million (AU$413 million).

TSW is based in the United States and has US$23.6 billion of funds under management (FUM), mostly long-only equity.

Pendal believes the acquisition will be double-digit EPS accretive in the first full year following completion of the deal. Its consolidated FUM will increase to AU$132 billion (up 30%), with US client FUM increasing 112%.

TSW’s CEO, John Reifsnider, will be appointed CEO of Pendal’s merged US business.

Commenting on the acquisition, Pendal Group CEO, Nick Good said:

TSW is a natural strategic and cultural fit with Pendal and expands our successful diversified business model in the largest equity market in the world. TSW is highly complementary to Pendal’s US business, with almost no overlap of investment strategies and clients.

The acquisition will be funded with equity, debt and existing capital.

$190 million of equity will be raised through a fully underwritten Placement along with a Share Purchase Plan which will allow retail shareholders to participate. New shares will be issued at AU$6.80. That’s 7.4% below the current (frozen) $7.34 per share.

Highlights from the half year results

This morning Pendal also released its results for the half year ending 31 March.

The company reported a 64% increased in Statutory Net Profit After Tax (Statutory NPAT) from the prior corresponding period, with NPAT coming in at AU$89.9 million. Underlying Profit After Tax (UPAT) also increased, up 8% from the previous period to $82.6 million.

CEO Nick Good noted:

There was a notable improvement in investment performance with 83 per cent of Pendal’s FUM outperforming their benchmarks over the last 12 months, and J O Hambro Capital Management (JOHCM) performance fees were $41.1 million, up from $0.6 million in the prior year.

With our improving investment performance, increasingly positive investor sentiment, and the implementation of our multi-year strategic investment program, we are well placed to take advantage of the growth opportunities we see ahead.

Pendal share price snapshot

Shares remain in a trading halt at the time of writing but have gained 21% over the past 12 months. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 31% in that same time.

Year-to-date, the Pendal share price is up 12%.

More reading

• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• These were the best performing ASX 200 shares last week
• The Pendal (ASX:PDL) share price lifts on funds update

Motley Fool contributor 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 Nearmap Ltd (ASX: NEA) share price was well and truly out of form last week. But thankfully, this week has started much more positively.

At the time of writing, the aerial imagery technology and location data company’s shares are up 7% to $1.84.

Why is the Nearmap share price charging higher?

There appear to be a few potential catalysts for the strong gain by the Nearmap share price on Monday.

The first is bargain hunters. With the Nearmap share price crashing 19% lower last week, some investors appear to believe it has been oversold and are taking advantage today.

Another potential catalyst is some significant insider buying. This morning it was revealed that Nearmap’s Chairman, Ross Norgard, has added to his considerable holding.

A change of director’s interests notice reveals that Mr Norgard purchased 500,000 shares via an on-market trade on Friday 7 May.

The chairman paid a total consideration of $928,496, which averages out to be $1.857 per share. This is still higher than where it trades right now.

Top broker remains positive

A third and final potential catalyst for the rise in the Nearmap share price today is a broker note out of Morgan Stanley.

According to the note, the broker has held firm with its overweight rating and $3.20 price target despite the legal proceedings that were announced last week.

Based on the current Nearmap share price, this price target implies potential upside of 74% over the next 12 months.

Morgan Stanley believes the legal proceedings pose a greater risk for near-term liquidity rather than its earnings power. As a result, it remains positive on the company and believes the market is undervaluing its businesses.

This is particularly the case for the North American business according to Morgan Stanley. It is bullish on this side of the company and expects it to be a key driver of growth in the future. This is due to its larger opportunity and superior economics.

More reading

• ASX 200 Weekly Wrap: Bank shares push ASX 200 towards all-time high
• These were the worst performing ASX 200 shares last week
• Why CSR, Fonterra, Nearmap, & Pro Medicus shares are dropping
• ASX 200 drops, Nearmap plunges, Appen declines
• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking

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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Nearmap (ASX:NEA) share price is jumping 7% today appeared first on The Motley Fool Australia.

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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has recovered from a soft start and is charging notably higher. The benchmark index is currently up 1.1% to 7,158.4 points.

Here’s what is happening on the market today:

A2 Milk crashes lower after downgrading its guidance

The  A2 Milk Company Ltd (ASX: A2M) share price has crashed to a multi-year low after downgrading its FY 2021 guidance once again. This downgrade was due largely to weakness in the daigou channel and significant inventory issues. The infant formula company now expects revenue of NZ$1.2 billion to NZ$1.25 billion for FY 2021 with an earnings before interest, depreciation and amortisation (EBITDA) margin of 11% to 12% (excluding MVM transaction costs). At the mid-point of its guidance range, this will be EBITDA of NZ$140 million, down 74.5% on FY 2020’s result.

Crown-Star merger

The Crown Resorts Ltd (ASX: CWN) share price is charging higher today after Star Entertainment Group Ltd (ASX: SGR) tabled a conditional, non-binding, indicative merger proposal. Although the offer is at a nil-premium share exchange ratio of 2.68 Star shares per Crown share, Star estimates that its pro forma share price is more than $5.00 per share. This implies a price in excess of $14.00 per Crown share, which was a 15.5% premium. Crown is considering the offer and also an improved bid from Blackstone.

Woolworths Endeavour demerger

The Woolworths Group Ltd (ASX: WOW) share price is pushing higher today after finalising plans to demerge its Endeavor Drinks business. If approved and implemented, the demerger will create two independent and leading ASX-listed companies. Woolworths also revealed that, subject to trading conditions and Board approval, $1.6 billion to $2 billion could be returned to shareholders if the demerger goes ahead.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Crown share price with an 8% gain. It is closely followed by the Star share price with an 7.5% gain following the merger proposal. The worst performer has been the a2 Milk share price with a disappointing 10% decline following its guidance downgrade.

More reading

• Centuria Industrial (ASX:CIP) share price falls despite lease extension
• Woolworths (ASX:WOW) share price rises on Endeavour demerger update
• Star (ASX:SGR) and Crown (ASX:CWN) shares on watch amid $12bn merger proposal
• ASX 200 Weekly Wrap: Bank shares push ASX 200 towards all-time high
• A2 Milk (ASX:A2M) share price in danger after downgrading guidance again

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Centuria Industrial REIT (ASX: CIP) shares are edging lower in morning trade. At the time of writing, the Centuria Industrial share price is trading 0.43% lower to $3.495. This comes despite the company providing a positive update on one of its lease agreements.

Centuria Industrial is an S&P/ASX 200 Index (ASX: XJO) listed Australian pure-play industrial real estate investment trust (REIT), with a portfolio of industrial assets across the nation.

In total, Centuria Industrial owns 61 investment properties worth more than $2.6 billion. The average occupancy rate of its industrial assets stands at 98.8% with an overall weighted average lease expiry (WALE) of 9.7 years, as at 31 March.

Below we take a look at Centuria’s latest leasing announcement.

What was announced?

The Centuria Industrial share price is edging lower in morning trade despite the company reporting that Woolworths Group Ltd (ASX: WOW) has doubled its leasing agreement at 2 Woolworths Way, Warnervale New South Wales.

The new agreement brings the weighted average lease expiry (WALE) with Woolworths at the distribution centre to 10.2 years.

Commenting on the lease extension, CIP Fund Manager Jesse Curtis said:

We see growing market demand for leasing of food logistics assets reflecting increasing consumer demand for fresh food and rise of food-related e-commerce. This is a structural trend we identified when we took over management of CIP in 2017 and have since focused on leveraging in this area, by adding strategic food-related assets to our portfolio and securing long-term leases with blue chip tenants.

Our Warnervale lease extension is a testament to this strategy. It builds on CIP’s acquisition of $214 million worth of cold storage assets and $236 million of food manufacturing facilities since FY19 – all of which are delivering significant value and attractive returns for CIP unitholders.

The company reported that the WALE of its New South Wales portfolio has increased from 3.7 years in July 2020 to 5.9 years in April 2021. Of Centuria Industrial’s assets, 26% are located in NSW, worth $686 million.

Centuria Industrial share price snapshot

Over the past 12 months, the Centuria Industrial share price is up by around 32%. That just edges out the 31% gain posted by the ASX 200.

Year to date, Centuria Industrial shares have more than doubled the returns from the ASX 200 and are up 13% so far in 2021.

More reading

• Woolworths (ASX:WOW) share price rises on Endeavour demerger update
• ASX 200 Weekly Wrap: Bank shares push ASX 200 towards all-time high
• Wrong… but still right!
• 2 reliable ASX 200 shares offering good income
• 2 fantastic blue chip ASX 200 shares rated as buys

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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 idea of making a wrong move with your money and losing what you worked so hard to earn can induce anxiety and fear. It can be so crippling, in fact, that you take no action at all in order to avoid potential regret.

You probably know investing in the stock market is one of the best ways to grow your savings and secure your future. The logical center in your brain is encouraging you to take that first step and put some money to work. But the emotional part of your brain keeps holding you back.

Here are five ways to conquer your stock market fears.

1. Stop visualizing the worst-case scenario

It’s easy to visualize stock market crashes. Big crashes like we saw in 2001, 2008, and 2020 make the headlines — and not just in the financial section. We hear about crashes more than anything else related to the stock market, and we remember them whenever we think about the general idea of “the stock market.”

This is the information the average beginner investor has about the stock market after consuming media for their entire life. The truth is that the average day, week, or month in the stock market is pretty boring. But boring doesn’t make for good headlines.

It’s important to consider what’s typical of a stock investment. Sure, consider the extremes, but don’t focus on them.

Thinking the stock market will crash as soon as you invest is like thinking you’ll win the lottery when you buy a ticket. Neither are very likely, but by focusing on them, you give them more weight than their mathematical probability, ultimately leading to subpar financial decisions.

2. There’s no need to be afraid of being wrong

You need to separate your decision to invest from the outcome of that decision. What that means is that if you invest today and then stocks tumble over the next few weeks, that doesn’t mean you made a bad decision. It means you had a bad outcome.

Bad outcomes will happen. The important thing to assess is whether you made a smart decision given the information you had at the time. That’s what you can control.

The best poker players in the world don’t win every hand they play. They make decisions based on imperfect information. If they keep playing hands and making good decisions, they win money over time.

There’s no need to regret a decision with a bad outcome if you would make the same decision again with the same information available. Keep making those good decisions, and ultimately the market will pay you for it.

3. Change your point of view

Imagine you’re advising someone else what to do with their money, instead of trying to make the decision for yourself. Doing so can help you focus on the logical reasons for investing instead of any emotional baggage you might be bringing to the table.

Another point of view to consider is your future self. What would your future self want your present self to do with their money? After all, when you’re saving and investing, you’re not doing it for your present self; you’re doing it for your future.

Just make sure you follow your own advice.

4. Change your frame

Have you watched the stock market climb ever higher since the coronavirus crash in March of 2020? If you’re referencing market prices based on their 2020 lows, you’ll never pull the trigger and invest.

The past doesn’t matter in investing. Stock prices are based entirely on future expectations.

By changing your reference point to today’s prices instead of what prices were in the past, you’ll be able to make a decision more easily. Don’t get caught up in trying to time the market or get the best price on a stock. A great stock trading at a good price is good enough for Warren Buffett, and it should be good enough for you too.

Another frame people often fall into is weighing potential gain versus potential losses. People are averse to taking risks for potential gains, but they will seek out risk if they’re otherwise guaranteed a loss. 

Take advantage of that psychological tick by thinking about your lost opportunity from choosing not to invest. If you could reasonably expect your investment to double over the next decade, think of it like losing your entire savings if you wait to invest for 10 years. That’s the opportunity cost of waiting.

5. Consider your next-best alternative

If you didn’t invest the money you’re saving, what would you do with it?

If you put it in a savings account, you’ll earn less than 1% at today’s rates. Inflation will eat away at any gains you earn on your principle.

Maybe you don’t want to save the money at all, instead spending it on a vacation or home improvements. Is that really a good use of the money, though? Maybe; maybe not.

The stock market offers the most accessible way to substantially grow your savings over time. By all means, consider your alternatives, but finding a better option for your money will be very difficult.

If and when you can’t find a better alternative for your money, you’ll probably be ready to invest it in the stock market.

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

More reading

• The Novonix (ASX:NVX) share price jumps 12% on potential US listing
• AMP (ASX:AMP) share price edges higher as buy-back commences
• Up 21%, why the Bod (ASX:BDA) share price is smoking the market today
• These are the 10 most shorted shares on the ASX
• PointsBet (ASX:PBH) share price lifts on acquisition news

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.

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The Novonix Ltd (ASX: NVX) share price has soared after the company announced it will explore the secondary trading of its shares on the Nasdaq Composite (INDEXNASDAQ: .IXIC). 

At the time of writing, the Novonix share price is trading at $2.36, up 11.8%.

Novonix share price higher on potential dual listing 

Novonix has submitted a draft registration statement to the US Securities and Exchange Commission (SEC) for the potential initial public offering (IPO) of American Depository Shares (ADS) and concurrent listing of ADSs on the Nasdaq.

The company advises that the number of ADSs offered and underlying Novonix ordinary shares to be issued have yet to be determined. The price for such instruments and the timing of the offering are also undecided at this stage. 

The prospect of a dual listing is currently subject to factors including the SEC review process, market conditions, investor demand and shareholder approval. 

Why seek a dual listing?

Companies seek to list on more than one exchange primarily for the opportunity to raise more capital. In the case of many ASX shares, listing in the US means access to the world’s largest economy and a deep pool of investors. 

This would make sense for Novonix, as a highly prospective but loss-making battery producer. The company is developing a cathode manufacturing method expected to represent approximately 30% of the cost of a battery cell.

Novonix is currently expanding its staff and scope while beginning expansion plans for the next phase of pilot synthesis capability for larger volumes. 

To fund its development and commercialisation plans, the company successfully raised $115 million on 25 February. The proceeds of the funds will be used to increase the scale of its anode material production up to 10,000tpa. The company believes that at 2,000tpa of anode, it will be able to secure multi-year contracts and generate healthy free cash flow to support growth.

Despite its disruptive technologies and aspirational growth, there are still significant capital outlays needed to complete research milestones and expand manufacturing capabilities. In the first half of FY21, the company reported a net loss of $10.7 million. 

From a funding perspective, a dual listing does make sense. And investors appear to be pleased with the announcement, judging by today’s Novonix share price increase of almost 12%, at the time of writing.

Should the dual listing be successful, Novonix will join its lithium peer, Piedmont Lithium Inc (ASX: PLL) on the Nasdaq. 

More reading

• These could be the next up and coming ASX lithium shares
• Novonix (ASX:NVX) share price takes a 5% hit despite quarterly results
• Why the Piedmont Lithium (ASX:PLL) share price is sliding 7% today
• What’s happening with the Novonix (ASX:NVX) share price today?

Motley Fool contributor Kerry Sun 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 AMP Ltd (ASX: AMP) share price is inching higher this morning. The price movement comes after the financial institution advised it will be commencing the $200 million share buy-back it first announced in August last year.

At the time of writing, shares in the company are trading at $1.0775 – up 0.23%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.85% higher.

Let’s take a closer look at the buy-back.

AMP buys back shares

In a statement to the ASX this morning, AMP said it will commence its share buy-back program today.

AMP will buy the shares on the market. According to the statement, the plan is subject to market conditions and “other relevant factors”. The company also reserves the right to cancel the buy-back at any time.

The Australian Securities and Investment Commission (ASIC), says an on-market buy-back does not need any prior approvals from the regulator, as long as no more than 10% of equity is purchased with 12 months, known as the 10/12 rule. Given AMP has a market capitalisation of $3.7 billion, the $200 million buy-back is well under that 10% limit.

The financial giant is funding the purchase through cash on hand. Back in August, AMP had $1.4 billion in “surplus capital” and committed to returning $544 million back to its shareholders. $344 million was paid via a special dividend at the time. The company postponed the buy-back until it was able to conduct a portfolio review, which it completed in April this year.

Investors are responding mildly positively to the buy-back finally commencing, judging by today’s AMP share price moves.

AMP share price snapshot

The AMP share price recently sank to a new 52-week low after shareholders voted to approve a merger between its Diversified Property Fund (ADPF) and another fund run by DEXUS Property Group (ASX: DXS).

In more substantial news, the financial institution announced it would demerge its asset management business and thus, abandon its plans to sell AMP Capital to Ares. As well, the group recently saw its CEO resign and be replaced by the Deputy CEO of Australia and New Zealand Banking Group Ltd (ASX: ANZ).

Over the past 12 months, the AMP share price has sunk by around 25%. It’s fallen an even greater 31% since the beginning of this year. The company’s share price is now trading below what it was during the COVID induced market sell-off in March last year.

More reading

• AMP (ASX:AMP) narrowly avoids second strike on remuneration
• Why the AMP (ASX:AMP) slumped to a new 52-week low
• AMP (ASX:AMP) share price down, facing shareholder revolt this week
• Could value finally be emerging for the embattled AMP (ASX:AMP) share price?
• History is on the side of the battered AMP (ASX:AMP) share price as it plans its demerger

Motley Fool contributor Marc Sidarous 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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