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Lithium Australia NL (ASX: LIT) has declared it is ready to join the Battery Stewardship Council’s battery recycling scheme. As a result of the news, the Lithium Australia share price opened 4.17% higher at 12.5 cents. At the time of writing, however, the Lithium Australia share price has retreated back to 12 cents, flat for the day so far.   

Let’s take a look at the announcement released by the battery metal supplier this morning.

Battery recycling

Lithium Australia has announced its 90%-owned subsidiary, Envirostream Australia Pty Ltd, has received Dangerous Goods approval for its packages that will transport batteries for recycling. This means the company is able to participate in the Battery Stewardship Council’s battery recycling scheme.

The Battery Stewardship Council has secured funding from the federal government and industry for its battery recycling scheme, which is planned to launch in January next year.

The council states the scheme will provide drop off points for customers to take used batteries to be recycled.

According to the Battery Stewardship Council, spent batteries are currently sent to landfill. There, their casing eventually corrodes which allows battery chemicals to leach into soil and waterways.

According to Lithium Australia, the World Bank’s Minerals for Climate Action report predicts demand for battery minerals will increase by 500% by 2050. Thus, the recycling of batteries could be a significant, sustainable source of battery critical materials.

In anticipation of the battery recycling scheme’s launch, Envirostream has created 6-kilogram and 12-kilogram storage and transportation boxes that are approved to hold both lithium-ion and alkaline batteries.

Commentary from management

Envirostream managing director Andrew Mackenzie commented on today’s news released by Lithium Australia, saying:

The Scheme is vital to improving Australia’s battery recycling rates, which currently sit at around 10% – a very low figure in comparison to other countries. At Envirostream, we’re developing mixed-battery collection systems designed for convenience and approved for safety and the mitigation of environmental risk.

Lithium Australia share price snapshot

Lithium Australia shares are having a roaring time on the ASX of late.

Currently, the Lithium Australia share price is up by around 100% year to date. It’s also up 144% over the last 12 months.

The company has a market capitalisation of around $108 million, with approximately 901 million shares outstanding.

More reading

• The Lithium Australia (ASX:LIT) share price is on watch today. Here’s why
• Why has the Lithium Australia (ASX:LIT) share price plunged 7% today?
• Why the Lithium Australia (ASX:LIT) share price is surging 7%

Motley Fool contributor Brooke Cooper 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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In late morning trade, the S&P/ASX 200 Index (ASX: XJO) is out of form and tumbling lower. At the time of writing, the benchmark index is down 0.4% to 7,067.1 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

Eclipx Group Ltd (ASX: ECX)

The Eclipx share price is up 8.5% to $2.15 following the release of its half year results. For the six months ended 31 March, the fleet management and salary packaging company reported net operating income of $105.9 million and net profit of $39.3 million. This was a 22% and 77% increase, respectively, over the prior corresponding period.

Emeco Holdings Limited (ASX: EHL)

The Emeco share price has jumped 7% to 99.5 cents. The catalyst for this was the release of a capital management update by the mining equipment company. According to the release, Emeco’s new capital management policy will see the company allocate 25% to 40% of operating net profit after tax to capital management initiatives each year. The policy will take effect following the end of FY 2021.

SeaLink Travel Group Ltd (ASX: SLK)

The SeaLink share price is up 2.5% to $10.08 after announcing a new acquisition. According to the release, the travel and transport company has entered into a binding agreement to acquire Western Australia-based Go West Tours for an enterprise value of $84.7 million. The deal also includes an earnout component of up to $25 million. Go West is one of the largest specialist bus operators serving the resources sector in Western Australia.

Starpharma Holdings Limited (ASX: SPL)

The Starpharma share price has stormed 4% higher to $1.85. This follows the release of an update on its Viraleze antiviral nasal spray. According to the release, the Viraleze antiviral nasal spray is now available for purchase by consumers in Europe via the company’s webstore. Viraleze is a broad spectrum antiviral nasal spray that irreversibly inactivates >99.9% of coronavirus/SARS-CoV-2 within one minute.

More reading

• Starpharma (ASX:SPL) share price surges higher on COVID product update
• Why the Eclipx (ASX:ECX) share price is rocketing 10% higher today
• Here’s why the SeaLink (ASX:SLK) share price is charging higher today
• Why Dubber, PointsBet, Starpharma, & Westpac shares are storming higher
• Starpharma (ASX:SPL) share price edges higher on update

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

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price fell for the second day as a broker downgrade is adding to the pressure.

The ANZ Bank share price slipped 0.4% to $27.79 in morning trade after it lost over 3% yesterday on the back of its profit results.

But the bank is in good company. The National Australia Bank Ltd. (ASX: NAB) share price fell 2.2% to $26.77 at the time of writing as the market also took a dim view of its earnings update.

The other major banks aren’t faring better either. The Westpac Banking Corp (ASX: WBC) share price lost 0.5% to $25.83 while Commonwealth Bank of Australia (ASX: CBA) also slipped 0.5% to $92.26.

ANZ Bank downgraded as upgrade cycle runs out of puff

What may also be weighing on sentiment towards the ANZ Bank share price is a note by Morgan Stanley.

The broker lowered its recommendation on the ASX bank to “equal weight” from “overweight” as it believes ANZ Bank’s upgrade cycle has reached an end.

“We think ANZ’s TSR has been the best of the majors over the past year due to the execution of its simplification strategy, superior capital management and leverage to recovery,” said the broker.

“However, we now expect a pause in the upgrade cycle to limit further share price upside.”

Top-line growth hard to come by

While the bank’s 6-basis point increase in net interest margins over the half was pleasing, the bigger issue is the lack of revenue growth.

Morgan Stanley isn’t holding out much hope of any improvement to ANZ Bank’s top-line. This is because of the loss of Australian mortgage momentum, lower institutional lending, NZ macro[1]prudential measures and a normalisation of Markets income.

Dividend growth to take backseat

The other issue it that the broker does not believe ANZ Bank can increase its dividend at the next reporting season.

“ANZ lifted the dividend to 70c, which is ‘more in line with the targeted long term payout ratio of 60-65%’,” added the broker.

“However, based on our forecasts, the dividend is unlikely to grow again until FY23.”

Morgan Stanley also lowered its 12-month price target on the ANZ Bank share price to $28 from $28.50 a share.

ANZ Bank share price may represent longer-term value

However, not all brokers have taken a dim view of the ASX bank. Macquarie Group Ltd (ASX: MQG) reiterated its “outperform” rating on ANZ Bank as it described the results as “respectable”.

On the other hand, the broker did acknowledge that the bank’s 2HFY21 guidance appears less optimistic.

“In this context, relative underperformance following the result was not surprising, particularly when coupled with the solid share price performance in the lead-up,” said Macquarie.

“However, in the medium term, we believe ANZ continues to offer better relative value than peers.”

Macquarie’s 12-month price target on the ANZ Bank share price is $30.50 a share.

More reading

• Is the ANZ (ASX:ANZ) share price a buy following its half year results?
• NAB (ASX:NAB) share price on watch after reporting $3.34bn cash profit
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, ANZ drops, Nearmap jumps
• Afterpay (ASX:APT) share price tumbles despite investor presentation

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, Macquarie Group Limited, National Australia Bank Limited, and Westpac Banking. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The HT&E Ltd (ASX: HT1) share price opened 0.5% higher today before giving up those gains to currently be trading 0.3% lower.

Below we take a look at the latest quarterly results from the ASX media and entertainment company, for the quarter ending 31 March (Q1 FY21).

What did HT&E report?

HT&E’s share price is moving between gains and losses after the company reported it was the best performing audio company in Australia. It said its Australian Radio Network (ARN) remained the number 1 metropolitan network Down Under.

Total revenues at ARN for Q1 were up approximately 2.5% from the previous corresponding period. And with April revenues up 53% on the prior period, the company said Q2 FY21 is tracking well ahead of Q2 FY20.

HT&E’s podcast business saw particularly strong growth in demand, seeing Q1 digital audio revenues increase more than 180% compared to the previous quarter. The company said it expects a similar level of growth to continue in Q2.

Commenting on ARN’s performance, HT&E’s CEO Ciaran Davis said:

ARN’s radio revenue was down 21%, while the overall market was down 25.2%. Additionally, digital audio revenues were up 122% on a like basis and we saw good momentum in podcasting and streaming revenues.

Pleasingly, our operations have emerged from 2020 in better shape and we are encouraged that this momentum is continuing in 2021. We are dominating ratings, winning 11 surveys in a row…

We have invested in building our digital content creation, data capability and monetisation and we are starting to see the benefits of our exclusive partnership with global platform, iHeartRadio come through.

In Hong Kong, advertising revenues were “marginally ahead” of the prior period, impacted by restrictions put in place to control the COVID outbreak. The company said that improved revenues in April, along with forward bookings and briefing activity for the second quarter, point to rising consumer confidence and an improving advertising market.

HT&E’s chairman, Hamish McLennan noted that:

We believe that there will be continued consolidation in media markets and with its deep media experience, HT&E’s Board will be looking for further opportunities to maximise shareholder returns. As part of our focus on delivering value for shareholders we appointed Macquarie Capital to explore liquidity options for our 25% stake in Soprano.

The company ended the quarter with $112 million in net cash. It did not declare a dividend but McLennan said the board is committed to re-instating its dividend policy.

HT&E share price snapshot

HT&E has had a strong 12 months, with shares up 62% since this time last year. By comparison, the All Ordinaries Index (ASX: XAO) is up 34% in that same time.

The HT&E share price has struggled some in 2021, with shares down 3% year-to-date.

More reading

• ANZ Bank (ASX:ANZ) share price hit by broker downgrade post results
• Visa’s recovery from the pandemic has officially begun
• Why is the Neometals (ASX:NMT) share price in a trading halt today?
• Why the GUD (ASX:GUD) share price is pushing higher today.
• Nearmap (ASX:NEA) share price dives 16% on legal proceedings

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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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.

People spend a lot of money using their Visa (NYSE: V) credit and debit cards. It’s the largest payment processing company in the world, and as people begin to spend more again, it benefits from every transaction using one of the cards in its network.

In the company’s fiscal 2021 second quarter, which ended March 31, its business returned almost back to pre-pandemic levels, demonstrating again why Visa is a solid stock to have in your portfolio.

A winning product 

Visa brought in revenue of $22 billion in 2020, compared to rival Mastercard‘s $15 billion. Its simple operating model of partnering with banks to provide a cashless payment option for shoppers in return for small fees and a small percentage of each transaction (around 2%) makes it easy to produce revenue and turn it into income. Visa’s net income is typically about half of revenue, which is much better than retailers, which have high product costs and overhead to pay for, and banks, which need to set aside provisions for loan losses.

Visa’s revenue tumbled along with the rest of the economy when the pandemic started, with year-over-year declines around 17% in the quarters ending June 30 and Sept. 30. That improved to just a 2% year-over-year decline in the latest period, and on many metrics, performance improved not just from 2020, but from 2019’s levels.

Payments volume was up 11% year over year and was 16% higher than in fiscal 2019’s second quarter. There was particular progress in the U.S., where the economy benefited from federal stimulus payments and the vaccine rollout. Payments volume increased by 18% year over year and by 24% from 2019.

The main drag on Visa’s results was its cross-border volume, which decreased by 21%. That was still an improvement of 12 percentage points from the fiscal first quarter, and 75% of its 2019 levels, which helped pad the top line.

New opportunities in fintech

Consumers are using digital payments for more of their spending activity, which is why Visa has put some muscle into developing its digital capabilities. Those efforts helped power its results during the pandemic. 

Visa doesn’t get the same attention for fintech prowess as some younger companies, but its market share of payment activity is so large that it will de facto benefit from a shift toward digital technology. Visa processed $2.5 trillion worth of payments in the quarter ending Dec. 31 — compare that with PayPal‘s $277 billion total payment volume in the same period. 

Card-not-present payment volume, which includes e-commerce transactions, has increased more than 30% in the U.S. and several other large markets over the past three quarters. But card-present payment volume is still growing as well, and Visa gets a piece of both categories. As would be expected during the pandemic, card-not-present volume excluding travel grew tremendously — by over 100%.

Contactless payments have become an important part of Visa’s success and will be a critical element of its growth. Contactless payment methods, such as “tap to pay,” make up a significant and growing portion of total sales, and round out its omnichannel payment network. 

Visa believes that all of its products and services create a network effect that brings even greater value to the company. For example, people who receive money on their debit cards through Visa Direct payments are likely to go ahead and spend that money, and 60% of clients use at least five value-added services in their accounts, while 30% use 10 or more. As Visa expands its suite of digital products and gains new merchants, this multiplies that effect on total sales. 

The takeaway

Visa pays a dividend, and while at recent share prices, it only yields 0.5%, it has been increasing its payouts annually.

Visa is a great stock to own because it rises along with the economy. That’s a problem when the economy falters, but the company always gets back to growth when the economy does. It’s also investing in new products and services to expand its capabilities and maintain its place on top, making it a strong long-term pick.

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

More reading

• ANZ Bank (ASX:ANZ) share price hit by broker downgrade post results
• What’s happening with the HT&E (ASX:HT1) share price today?
• Why is the Neometals (ASX:NMT) share price in a trading halt today?
• Why the GUD (ASX:GUD) share price is pushing higher today.
• Nearmap (ASX:NEA) share price dives 16% on legal proceedings

Jennifer Saibil 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 Mastercard, PayPal Holdings, and Visa and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended Mastercard and PayPal Holdings. 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 Neometals Ltd (ASX: NMT) share price is not going anywhere today after a trading halt was placed on the company’s shares. The Neometals share price has spent the last few days, and months for that matter, climbing enthusiastically.

Yesterday, Neometals was up almost 9% to a new 52-week high of 56 cents a share. Year to date, the company is up more than 90%, and over the past 12 months, 250%.

Neometals is an ASX lithium exploration company. The company owns a refinery project in India. In addition, Neometals owns recycling operations that extract lithium and vanadium from batteries and steel slag.

So what happened this morning?

Well, the company put out an ASX release requesting a training halt for its shares, that’s what. This happened at 9:54 am, just before market open.

So, here’s what Neometals had to say when it requested the trading halt:

Neometals Ltd (Company) requests that ASX grant an immediate trading halt with respect to the Company’s securities pending an announcement regarding an update on study results for the Company’s Battery Recycling project. The Company requests that the trading halt remain in place until the earlier of commencement of trading on Monday, 10 May 2021 or the time the Company makes an announcement.

The “company’s battery recycling project” could refer to Neometals‘ announcement on 5 March. This flagged a memorandum of understanding between ‘Primobius GmbH’ (a joint venture between Neometals and SMS Group GmbH) and Japan’s Itochu Corporation. This memorandum of understanding (MoU) “provides a framework towards establishing a corporation for battery recycling” between the two parties.

According to the ASX announcement, the two parties have commenced planning discussions and preparations for a “dedicated demonstration plant trial”. It also announced that “it is intended that future binding legal agreements will encapsulate sales of recycled product to establish a circular economy for Itochu based on the use of Primobius recycling technology”. The plant trial is scheduled to begin operations in the 3 months to June 30 2021.

What else has been affecting the Neometals share price?

It was only last month that Neometals shares were in a spot of bother over plans for the company to initiate a dual listing. The company announced on 23 April that it plans to list on the London Stock Exchange. The listing will take place in the first half of FY2022. This sent Neometals shares down 1% at the time.

At the current (albeit frozen) share price of 56 cents, Neometals has a market capitalisation of $302.5 million.

More reading

• Neometals (ASX:NMT) share price slides on dual-listing update
• What’s happening with the Neometals (ASX:NMT) share price?
• Why the Neometals (ASX:NMT) share price has surged to a 52-week high
• Why the Neometals (ASX:NMT) share price is shooting 8% higher
• ASX lithium shares are surging across the board. Here’s why

Motley Fool contributor Sebastian Bowen 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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In morning trade the GUD Holdings Limited (ASX: GUD) share price is pushing higher.

At the time of writing, the diversified products company’s shares are up 1% to $13.34.

Why is the GUD share price pushing higher?

Investors have been buying the company’s shares following the release of a trading update after the market close on Wednesday.

According to the release, the company’s performance during the third quarter has been in line with expectations.

The Automotive business has experienced strong workshop end user demand, which has underpinned year to date organic sales growth of 15%.

Management also revealed that it could be adding to the business in the near future. It advised that there is no shortage of aftermarket acquisition opportunities. Though, it will maintain its disciplined approach, with adherence to clearly defined acquisition and pricing criteria.

Things aren’t quite as positive for the Water business. Its year to date organic sales are up 4% over the prior corresponding period. However, management notes that COVID lockdown impacts are continuing as production ramps to meet a sales backlog with associated incremental costs.

This includes shift penalties, outwards/export air freight, partial factory closure, which are impacting margins. Positively, though, management advised that the company has a strong inventory position to support demand.

One concern for investors, which is likely to be holding back the GUD share price a touch today, is that its cost inflation is slightly above levels flagged with its first half results. This is being driven by freight costs and supplier price rise requests, which are under negotiation

Despite this, management has positively narrowed its FY 2021 underlying earnings before interest and tax (EBIT) guidance to $98 million to $100 million. This compares to its previous guidance of $95 million to $100 million. The company has also retained its cash conversion target of ~80% to 85%.

More reading

• Nearmap (ASX:NEA) share price dives 16% on legal proceedings
• Is the ANZ (ASX:ANZ) share price a buy following its half year results?
• Why the Zelira (ASX:ZLD) share price is storming 7% higher
• Starpharma (ASX:SPL) share price surges higher on COVID product update
• Why the Appen (ASX:APX) share price is down 6% to a multi-year low

Motley Fool contributor James Mickleboro 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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Nearmap Ltd (ASX: NEA) shares surged almost 15% on Wednesday after the company upgraded its FY21 guidance. However, its shares then went into a trading halt before market close in relation to potential legal proceedings. 

Today, the Nearmap share price is plunging after the company acknowledged the legal proceedings filed on behalf of competing aerial imagery firm, Eagle View Technologies and its subsidiary Pictometry International Corp. 

Legal proceedings drive Nearmap share price lower 

The Nearmap share price is currently trading 16.31% lower at $1.975 following the company’s update on the legal proceedings. The announcement reveals that Eagle View Technologies and Pictometry International Corp have filed a complaint against Nearmap’s subsidiary, Nearmap US, in the United States District Court. 

The complaint alleges patent infringement in relation to Eagle View’s roof estimation technology. Nearmap believes that the allegations do not affect its core proprietary technology and do not affect the survey of imagery or the delivery of premium content. 

Nearmap CEO and Managing Director Dr Rob Newman commented on the matter, saying: 

Nearmap has always taken the subject of intellectual property rights and patent protections seriously and believes the allegations are without merit. We will vigorously defend against the complaint. The business remains unaffected by the complaint.

Eagle View’s patent infringement complaint 

The complaint filed to the Utah courts highlights that: 

Plaintiffs EagleView and Pictometry now bring this action to halt Nearmap’s infringement of eight (8) patents, and obtain other relief as necessary.

The complaint states that “Nearmap has and continues to directly infringe and/or indirectly infringe, by way of inducement, the ’152, ’880, ’518, ’961, ’737, ’568, ’960, and ’149 Patents” 

For example, the 152 patient, entitled “Concurrent Display Systems and Methods for Aerial Roof Estimation” was issued by the United States Patent and Trademark Office on 26 June 2012. The complaint alleges that: 

Nearmap’s product is remarkably similar to, and appears to have been copied from, EagleView’s technology and roof reports, confirming that Nearmap monitors EagleView’s website, products, roof reports, and patents.

Foolish takeaway

Following today’s falls, the Nearmap share price is now trading 13% lower year to date. The company’s shares have, however, gained almost 19% since this time last year. Nearmap has a market capitalisation of around $1 billion.

More reading

• ASX 200 rises, ANZ drops, Nearmap jumps
• Here’s why the Nearmap (ASX:NEA) share price is in a trading halt
• Why Ecofibre, MoneyMe, Nearmap, & Race Oncology shares are storming higher
• ASX 200 jumps 0.7%: ANZ half year results, Nearmap jumps
• 5 things to watch on the ASX 200 on Wednesday

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 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.

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On Thursday morning, the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is edging lower.

At the time of writing, the banking giant’s shares are down 0.5% to $27.77.

This means the ANZ share price is now down 3.5% since the release of its half year results.

Is the weakness in the ANZ share price a buying opportunity for investors?

According to a note out of Goldman Sachs, its analysts believe the ANZ share price is in the buy zone.

In response to its half year results, the broker has retained its buy rating and increased its price target to $30.20.

This price target implies potential upside of approximately 9% over the next 12 months excluding dividends.

And if you include the 5% fully franked dividend yield that Goldman Sachs is forecasting, this potential return stretches to 14%.

What did the broker say?

Goldman gave its verdict on ANZ’s half year result.

It stated: “ANZ’s 1H21 cash earnings grew 112% on pcp to A$2,990 mn, with the beat largely driven by a lower than expected BDD charge. 1H21 PPOP came in 3% lower than GSe, driven by trading and fee income, partially offset by better NIMs and expenses. The proposed interim DPS of A70¢ implies a payout ratio of 67% (DRP to be neutralised) and 1H21 CET1 ratio of 12.4% (18.1% globally-harmonised), 44 bp stronger than GSe.”

Why is Goldman Sachs bullish?

Goldman Sachs is positive on the ANZ share price due to its valuation and cost reduction plans. It expects the latter to offset income pressures.

The broker said: “We maintain our Buy rating on ANZ given our expectation that cost reductions, if achieved, will more than offset income pressures, while valuations remain supportive.”

“To this end, we note that i) ANZ’s NIM is being very effectively managed in the face of weaker volumes; a trend we expect to continue through FY21E, ii) the resulting revenue pressures, which are also being adversely impacted by fees (and Markets in 1H21), should be offset by productivity benefits in outer years, iii) the stock is trading more than one standard deviation cheap versus the sector on PPOP multiples (24% discount vs. 11% long-run average discount), despite our expectations that it will deliver 5% PPOP/share CAGR in the two years to FY23E (with upside from capital management), with a c. 5% dividend yield; and iv) our TP offers c. 13% TSR [now ~14%],” it concluded.

Despite this recent weakness, the ANZ share price is up 20% year to date.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, ANZ drops, Nearmap jumps
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• The ASX 200 is within an arms reach of all-time record highs
• Here’s how much ANZ’s (ASX:ANZ) dividend is worth now

Motley Fool contributor James Mickleboro 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 Zelira Therapeutics Ltd (ASX: ZLD) share price is firmly in the green today following a positive update for its HOPE products.

At the time of writing, the cannabis company’s shares are swapping hands for 5.7 cents, up 7.55%.

What did Zelira announce?

Investors appear upbeat by the company’s latest announcement, sending the Zelira share price higher.

According to this morning’s release, Zelira advised its HOPE products have launched in Washington DC. Additionally, Zelira noted that this occurred through its partnership with Alternative Solutions. 

Alternative Solutions is a licenced grower, manufacturer, and distributor of medical cannabis products. The company operates in the District of Columbia (Washington DC), United States.

Furthermore, both companies entered into an exclusive licence agreement in late 2020 to expand the market presence for Zelira’s range of HOPE products.

Currently, Washington DC has an agreement with 32 other states within the country for approved medical cannabis programs. The mutual exchange allows patients who are registered in the authorised states to legally buy medical cannabis in Washington DC.

Zelira stated that HOPE is available at the National Holistic Healing Centre, located near Dupont Circle.

As part of the deal, Zelira will receive an upfront fee and ongoing royalties from product sales within Washington DC. The company did not provide any further details regarding the financial aspects of the contract.

In addition, Zelira holds a licencing agreement with Ilera Healthcare LLC and Advanced Biomedics LLC for Pennsylvania and Louisiana, respectively. Management believes that customer adoption and sales will be similar in Washington DC and other markets.

Management commentary

Zelira managing director, Dr Oludare Odumosu hailed the company’s success, saying:

The successful launch of HOPE in Washington DC is a huge step forward in Zelira’s strategic focus on expanding access to HOPE throughout the USA. We look forward to partnering with Alternative Solutions to support the growth of our product in these new markets.

Alternative Solutions CEO, Matt Lawson-Baker further commented:

We are thrilled to partner with Zelira in bringing HOPE to Washington DC and look forward to bringing patients scientifically formulated medicines they can trust.

Zelira share price snapshot

Since the beginning of 2021, investors have seen the Zelira share price continue to fall in value. Year-to-date performance stands at a loss of more than 40%, reflecting weak shareholder sentiment.

Based on current valuations, Zelira presides a market capitalisation of around $63 million, with close to 1.2 billion shares outstanding.

More reading

• Zelira (ASX:ZLD) share price falls despite strong trading update

Motley Fool contributor Aaron Teboneras 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.

The post Why the Zelira (ASX:ZLD) share price is storming 7% higher appeared first on The Motley Fool Australia.

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