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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.

No investment has affected my family’s lived experience more than Amazon (NASDAQ: AMZN). My original purchase in 2010 has returned 2,200%. Along the way, I’ve sold some to pay for the house we live in, and the medical costs associated with my daughter’s birth before the enactment of the Affordable Care Act.

I also think that Jeff Bezos will go down as one of (if not the) greatest business person of our time. His annual letters to shareholders are packed with wisdom that can not only make you a better investor, but also a better decision maker in all facets of life. 

And yet, for the second time, I sold a second large tranche of shares. I’m still holding some, but with every passing month, I lose faith the quality of the company isn’t being diluted by its sheer size. Read below to see how this might all play out — and why I still hold shares despite my misgivings.

Above all else, I have been perpetually awed that Amazon has been able to continually remain true to its mission: “to be earth’s most customer-centric company.” Think about Amazon Prime: free one- or two-day shipping, deals at Whole Foods, plus a streaming service that is starting to (in my household) rival Netflix. It’s mind-boggling how Amazon has upped the level of customer-service in retail writ large — at scale.

Straying from the path

But with the ballooning importance of Amazon’s advertising business, that mission is taking a back seat. Consider a search I did for winter gloves a few months back:

• After typing in “winter gloves,” a total of 13 recommendations popped up before an “editorial recommendation.”
• If you looked very closely (I’m guessing many don’t), the first seven (and eight total) were “sponsored” placements — which means a company paid extra money to get those products placed where they were on the search results list.

Think about that for a minute. Of the first three rows of gloves displayed, only 22% were displayed — presumably — based on the merits of the product being offered.

The most customer-centric thing to do — by a wide margin — would be to develop an algorithm that combines the highest- and most-oft rated products at the top of the list. That lets me know that what I’m getting is — as best Amazon’s machine learning can tell — the best deal possible.

But that’s not what Amazon has done. It has turned its loyal customers into a product for advertisers. 

From a financial standpoint, I can’t blame them. Amazon.com is the fourth-most-visited site in America. The placement in those search results is enormously lucrative: Amazon doesn’t have to do much to get top dollar for those ads.

It also means the company has slowly been turning what should be sacred — its core mission and reason for being — into something rather profane. 

I’ve written about this before. In fact, after I did, someone from Amazon’s advertising team called to clarify a few points. While that was helpful, when I mentioned just how many ads I was seeing, he was surprised and thought it was a mistake. That type of response makes me wonder how plugged in executives are to the experience of using the website.

It doesn’t end there

But my qualms don’t end with ads. While I’m sure incoming CEO Andy Jassy is by far the best person to take over from Bezos, I’m much more enthusiastic when the person heading a company’s daily operations is the founder.

And I also think key people at the organization are straying widely from Bezos’ operating system. Take the recent vote to unionize (which was turned down by employees) in Alabama. 

Bezos has highlighted before how there are two types of decisions:

• Two-way-door decisions: These are choices you make that can quickly be reversed with little long-term downside. The vast majority of decisions you make are this type, and they should be made quickly.
• One-way-door decisions: Much rarer, these are the types of decisions you can’t undo. The long-term consequences are often vast. Decisions here should be slow and deliberate.

A type of one-way-door decision exploding in frequency are social media posts. How many people have we seen get “canceled” based on something from their feed — whether current or very old. No matter how you feel about the trend, it’s clear for businesses that cooler heads need to prevail, especially on Twitter.

I have no specific opinion about the Alabama unionization vote — primarily because I’ve never worked in an Alabama Amazon facility and have no idea who to trust to find out more. That said, I know that when senators were calling for Amazon to raise employee wages in the past, Bezos — instead of being hostile and confrontational — eventually agreed, saying, “We listened to our critics, thought hard about what we wanted to do, and decided we want to lead.”

When antagonized by the same senators ahead of the vote, how did Amazon’s official “Amazon News” account respond?

There’s a big difference between talk and action. @SenSanders has been a powerful politician in Vermont for 30 years and their min wage is still $11.75. Amazon’s is $15, plus great healthcare from day one. Sanders would rather talk in Alabama than act in Vermont.

— Amazon News (@amazonnews) March 26, 2021

https://platform.twitter.com/widgets.js

I’m not saying Amazon doesn’t have a point. What I am saying is that this type of impulse response is indicative of a worrying trend — a straying from what Amazon the great company that it is: moving quickly with two-way-door decisions, and very slowly with one-way-door decisions.

Add all of this together, and I sold roughly half of the Amazon shares I have left.

And yet I’m staying invested

Here’s the surprising part: Even after all that, Amazon remains 6% of my real-life holdings and my family’s sixth-largest position. Why would I continue to hold shares?

• Companies change and adapt: In a decade’s time, Amazon’s marketplace may be supplanted by a more user-friendly alternative. But fulfillment and Amazon Web Services (AWS) could still be powerhouses that continue to put the customer first.
• Bezos isn’t leaving entirely: The founder is transitioning to an executive board role. In his last letter to shareholders, he took a more one-way-door approach to labor disputes, saying: “It’s clear to me that we need a better vision for our employees’ success. … We are going to be Earth’s Best Employer and Earth’s Safest Place to Work.”
• It’s still incredibly antifragile: We’re talking about a company with a low-cost (shipping) advantage, high switching costs (AWS), and the network effect (marketplace). There’s tons of cash and a long history of creating new lines of business that people flock to. This is one of the greatest growth stocks of our time.

If you’re like me, it’s important to consistently ask where you might be wrong, overly emotional, or not aware of all the facts. When that’s the case, I tend to avoid all-or-nothing thinking. Thus, once again selling shares — but not all of them — will help me sleep at night. At the end of the day, that’s an important litmus test for the composition of your portfolio.

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

More reading

• 3 things you’ll want to know when Amazon reports Q1 earnings
• Growing pains, or something worse, for Kogan?
• Should grocery companies be worried about Amazon fresh?
• Amazon Prime adoption accelerated in 2020
• Jeff Bezos just revealed Amazon Prime’s latest subscriber number — and it’s a doozy

Brian Stoffel owns shares of Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Netflix and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why I sold (some of) my Amazon stock appeared first on The Motley Fool Australia.

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

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The Recce Pharmaceuticals Ltd (ASX: RCE) share price is slipping today after the company released its quarterly activities report.

At the time of writing, the Recce share price is down 1.85% to $1.06 per share.

Recce is a drug discovery and development business commercialising a new class of synthetic antibiotics with a broad-spectrum activity designed to address the global health challenge of antibiotic-resistant superbugs.

Its patented lead drug candidate is a synthetic anti-infective, which has been developed to treat blood infections and sepsis derived from E. coli and S. aureus bacteria, including their superbug forms.

Recce’s quarterly performance and cash flow

The Recce share price is down today despite a reasonably strong reported performance from the medical company. Recce announced a cash position of $22.92 million and has just listed on the Frankfurt Stock Exchange under the code R9Q.

The company dual-listed on the Frankfurt Stock Exchange, seeing trade of the company’s securities on German trading exchanges at Frankfurt, Tradegate, Munich, Stuttgart and Gettex.

No associated capital raise or related issuance of securities was necessary because of the company’s financial position. Investor awareness activities are underway in the region, with Recce hoping to further broaden its institutional and retail investor base across Europe.

Recce pharmaceutical trials

Recce reported progress has also been made in its pharmaceuticals trials.

The company has formalised a topical Phase I/II burns study with the West Australian Health Department and Fiona Stanley Hospital. The study aims to assess a Recce drug as a spray-on, broad-spectrum antibiotic to treat topical burn wound infections.

A Phase I clinical study is progressing at Adelaide’s CMAX facility. The study seeks to evaluate the same drug’s safety, tolerability, pharmacokinetics, and pharmacodynamic profile following intravenous administration. 

Meanwhile, the company reports encouraging results from an anti-viral screening program, evaluating one of Recce’s patents, R327, against SARS-CoV-2 (coronavirus).

Further testing (underway overseas) must be completed before R327 may be confirmed as active or safe in use against the SARS-CoV-2 virus.

Recce share price snapshot

The Recce share price is down 2.7% year-to-date but has lifted 186% over the past 12 months.

More reading

• Recce (ASX:RCE) share price surges 6% on clinical trial registration
• The Recce (ASX:RCE) share price is up 7% after its drug saved a human
• Why EML, NextDC, Qantas, & Recce shares are racing higher
• Why is the Recce (ASX:RCE) share price in the red today?
• Recce Pharmaceuticals (ASX:RCE) share price tumbles despite positive update

Motley Fool contributor Lucas Radbourne-Pugh 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 is the Recce (ASX:RCE) share price falling today? appeared first on The Motley Fool Australia.

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The Queensland Pacific Metals Ltd (ASX: QPM) share price is jumping today, up 19% at the tie of writing to 12 cents a share. Queensland Pacific opened at 11 cents this morning before rocketing as high as 13 cents early in morning trade. Today’s move is just the latest in what has been a very successful year for the company. AS recently as July 2020, Queensland Pacific Metals was trading at a price of 1 cent a share, meaning the company has rocketed more than 1,000% over the past 10 or so months. Even just in 2021 so far, the company is up around 200%.

So why are Queensland Pacific Metals shares jumping today?

Queensland Pacific Metals share price gains

There have been a few recent developments that are likely to be feeding into Queensland Pacific Metals shares today. Firstly, a fortnight ago, the company announced that it had managed to produce battery-grade nickel sulphate. As my Fool colleague Brooke reported at the time, Queensland Pacific stated that the results managed to adhere to the highest battery specification standards. That news sent Queensland Pacific shares up 15% at the time.

But we have some fresh news today as well.

Queensland Pacific Metals released an ASX announcement before the market opened this morning. This announcement heralded the appointment meant of James (Jim) Simpson as a non-executive director of Queensland Pacific Metals, effective 1 May. Mr Simpson reportedly has more than 30 years of experience in the resources sector, including a stint at Aurelia Metals Ltd (AX: AMI). He has most recently worked as executive director for Peel Mining Ltd (ASX: PEX).

Queensland Pacific chair Eddie King had this to say on the appointment:

I am delighted that someone of Jim’s calibre has chosen to join the Board of QPM. Jim brings with him a wealth of resources and corporate experience and has a detailed understanding of what is required when taking a resources project through its technical feasibility and funding/development phases and ultimately into production. I look forward to working with Jim during this period and beyond.

Judging by the performance of the Queensland Pacific share price today, the market agrees with these sentiments. At the current pricing, Queensland Pacific Metals has a market capitalisation of $140 million.

More reading

• Why the Queensland Pacific Metals (ASX:QPM) share price just soared 15%

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.

The post Why the Queensland Pacific Metals (ASX:QPM) share price is jumping today appeared first on The Motley Fool Australia.

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There has certainly been both winners and losers from the rise we have seen over the past decade or two of the exchange-traded fund (ETF). Although ETFs are now commonplace, there was a time when the idea didn’t even exist. Before the rise of the ETF, this space was almost exclusively occupied by managed funds (also called mutual funds), with the odd Listed Investment Company (LIC) thrown in. A managed fund differs from an exchange-traded fund in that it is not traded on a stock exchange. Instead, these funds trade outside the share market. Investors can usually only buy, sell or trade managed fund units outside of market hours. And this is a laborious task too, with the fund manager having to manage the pricing, and trading, of its own units.

Managed funds are still around, of course. Many of the ASX’s largest fund managers, companies like Magellan Financial Group Ltd (ASX: MFG) and Platinum Asset Management Ltd (ASX: PTM) still offering a range of unlisted funds for retail investors.

But a strange thing seems to be happening to this space. Something that prompts the question: is the managed fund dying out? That would be the steady conversion rate to ASX listed funds that these funds seem to be going through.

Managed funds to ETFs?

Now, it is well known that managed funds aren’t the most accessible investment vehicle. Outside the hassle of having to buy them outside the share market, managed funds also usually charge relatively higher fees than their listed counterparts. They also tend to have prohibitive minimum investment amounts, usually $10,000 or $20,000, but sometimes far higher.

That rules these vehicles out of contention for many retail investors.

And it seems the managers of some funds have woken up to this. Take the Hyperion Global Growth Fund. This is a fund that has been around since 2014. It has also built an objectively impressive track record of performance, returning an average of 24.7% per annum over the past 5 years.

But Hyperion clearly thinks that its managed fund status is holding it back. Last month, Hyperion listed this fund on the ASX as Hyperion Global Growth Companies Fund (ASX: HYGG). Investors can now buy units of this managed fund on the ASX, effectively making it an ‘active ETF’.

Some more movers

We have seen similar moves with other companies. Fellow growth investing high flyer Loftus Peak recently listed its Loftus Peak Global Disruption Fund (ASX: LPGD) as a listed fund as well. Again, Loftus Peak had been enjoying solid performance figures (25.27% per annum since 2016), but clearly decided that it could attract more investors by listing on the share market as well.

Magellan has also recently changed its fund structure so all of its funds now have ASX listings, such as the Magellan High Conviction Trust (ASX: MHH).

Clearly, this is the direction the winds are blowing for the managed fund. We could well be seeing the beginning of the end of the old managed fund structure as we know it. Perhaps the ASX will eventually be home to all funds one day, rendering the terms ‘listed’ and ‘unlisted’ redundant.

More reading

• Could value finally be emerging for the embattled AMP (ASX:AMP) share price?
• 2 strong ASX 200 shares offering good income
• Why the Magellan (ASX:MFG) share price has lost its magic
• 2 high-yielding ASX 200 dividend shares
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Sebastian Bowen owns shares of Magellan High Conviction Trust. 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 Are ASX ETFs killing the managed fund? appeared first on The Motley Fool Australia.

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The Vulcan Energy Resources Ltd (ASX: VUL) share price is on the move after the company announced it has entered a binding agreement to acquire 100% of geothermal surface consultancy business, Global Engineering and Consulting Gmbh (gec-co). At the time of writing, Vulcan shares have jumped 6.82% higher to $8.14 apiece.

The acquisition will double the size of Vulcan’s technical team to drive the development of its Zero Carbon Lithium project.  

Acquisition news 

According to today’s release, gec-co is a world-leading planning and consultancy company for deep geothermal projects. It focuses on projects at surface including power plants, heat stations, drill pads and permitting. The company has a highly credentialed scientific team of 25 with more than 300 years of combined engineering knowledge.

In similar news that also sent the Vulcan share price soaring recently, the company announced in February it had acquired a sub-surface development company, GeoThermal Engineering. Vulcan has today advised that its latest acquisition now positions the company with an “unparalleled surface and sub-surface geothermal development team” to drive its flagship Zero Carbon Lithium strategy. 

Vulcan managing director Dr Francis Wedin commented on the gec-co acquisition, saying: 

By acquiring to grow our team, we are accelerating the development of our globally unique project. Our geothermal development team is well complemented with the acquisition of surface engineering consultancy gec-co, following the recent acquisition of sub-surface development consultancy GeoT. The gec-co team is immensely experienced… and also brings in public relations, administrative and logistical support to the rapidly growing Zero Carbon Lithium™ project.

…the Vulcan group is now very well positioned to execute on our strategy: to decarbonise heat and power in Europe with geothermal development in the Upper Rhine Valley, and in doing so to co-produce a world-first lithium hydroxide with net zero carbon footprint for the European electric vehicle market.

Vulcan share price snapshot

After briefly running as high as $14.20 on 19 January this year, the Vulcan share price has been mostly trading between the $5 and $7 marks. Today’s boost, however, has seen Vulcan shares push past $8 for the first time since early February. Year to date, the company’s shares are up by almost 200% and have also rallied by around 4,000% over the past year. 

More reading

• Vulcan Energy (ASX:VUL) share price slumps amid asset spin-off
• Why this broker thinks the Vulcan (ASX: VUL) share price can double again
• The Vulcan (ASX:VUL) share price has rocketed 9% today. Here’s why
• Why the Vulcan (ASX:VUL) share price is on watch
• These 3 ASX companies are leading the way to net zero emissions

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.

The post Why the Vulcan (ASX:VUL) share price is surging 7% appeared first on The Motley Fool Australia.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. The benchmark index is current down 0.5% to 7,011.9 points.

Here’s what is happening on the market today:

Takeover offers

Both the Bingo Industries Ltd (ASX: BIN) share price and the Tabcorp Holdings Limited (ASX: TAH) share price are storming higher today follow the receipt of takeover offers. Macquarie Infrastructure and Real Assets has tabled a $2.3 billion offer for Bingo and UK-based Entain has increased its bid for the Tabcorp’s wagering and media unit from $3 billion to $3.5 billion. While Bingo’s board is recommending its approach, Tabcorp advised that it is yet to form a view on the latest offer.

BlueScope guidance upgrade

The BlueScope Steel Limited (ASX: BSL) share price is rising today after upgrading its guidance for FY 2021. The steel manufacturer now expects its underlying earnings before interest and tax (EBIT) for the second half to be in the range of $1 billion to $1.08 billion. This compares very favourably to its previous guidance range of $750 million to $830 million. A key driver of this outperformance was its US-based North Star business.

IRESS update

The IRESS Ltd (ASX: IRE) share price is pushing higher today after upgrading its net profit after tax guidance for FY 2021. The financial technology company now expects its earnings to be between $70 million and $77 million. This compares to previous guidance of $56 million and $63 million. This follows IRESS concluding its QuantHouse earnout ahead of schedule, enabling the full integration of the business.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Bingo share price with a 6.5% gain following its takeover approach. Going the other way, the worst performer has been the Zip Co Ltd (ASX: Z1P) share price with a decline of almost 4% on no news. Positively, despite this decline, the Zip share price is still up 47% year to date.

More reading

• Your handy guide to 5 top ASX BNPL shares
• Why the Reliance Worldwide (ASX:RWC) share price is down this morning
• Here’s why the BlueScope (ASX:BSL) share price is shooting 8% higher today
• BINGO (ASX:BIN) share price charges 7% higher on takeover agreement
• Why the Viva Energy (ASX:VEA) share price is in focus

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

The post ASX 200 down 0.5%: Bingo & Tabcorp takeovers, BlueScope upgrades guidance appeared first on The Motley Fool Australia.

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The buy now, pay later (BNPL) revolution has certainly taken off in Australia and the ASX.

Investors blew the share prices of many BNPL companies out of the water last year as the payment providers gained popularity through COVID-dominated 2020.

It hasn’t all been just a sweet ride to the top, however. Most ASX-listed BNPL shares were caught up in the US-driven tech sell-off earlier this year. Some are still actively recovering. 

If you’re looking to invest in ASX-listed BNPL companies, but you’re not sure what makes each one different from the last, this guide is for you.

Here, we look at the recent financial performance and business models of ASX BNPL shares with market capitalisations of more than $250 million.

We note that the Commonwealth Bank of Australia (ASX: CBA) has a relatively new BNPL service, but as most of its business is in other endeavours, it isn’t included in this list.

Afterpay Limited (ASX: APT)

First off, the industry-leader and arguably most well-known ASX BNPL share, Afterpay.

Business model

Afterpay uses the tried and tested 4-instalment payments plan. The first instalment is paid upon purchase, then once every 2 weeks thereafter over a total period of 6 weeks.

It has no lengthy application process and is accepted in hundreds of stores and online shops Australia-wide. The BNPL provider charges a $10 fee if a customer misses a payment and another $7 if the payment still hasn’t been received after 7 days.

Afterpay is also set to add a money management service to its offerings in the first quarter of the 2022 financial year. 

Recent financial performance

In its third-quarter results last week, Afterpay’s underlying sales increased a whopping 123% compared to the previous comparable period. March was its second-highest monthly underlying sales ever, as it raked in $1 billion over the month.

These improvements are comparable to those in Afterpay’s 2021 half year and 2020 financial year results, suggesting sustainability of growth. Although past growth never guarantees future growth. 

Afterpay’s quarterly report mentioned a possible US listing. While companies can list on more than one exchange, it’s made some investors wary that Afterpay might be gearing up to leave the ASX. 

Recent share price performance

The Afterpay share price was hit hard through the tech sell-off, dropping by 22% over the last week of February and the first week of March. However, it didn’t reach its lowest closing price until 30 March. 

This dip accounts for the Afterpay share price’s lazy year-to-date growth – it has increased just 3% in 2021. Having said that, the Afterpay share price has ballooned by 342% over the last 12 months.

Afterpay has a market capitalisation of around $35 billion, with approximately 290 million shares outstanding.

Zip Co Ltd (ASX: Z1P)

Introducing the second-largest BNPL company on the ASX: Zip, which offers both Zip Money and Zip Pay.

Business model

Zip Money is similar to a credit card, while Zip Pay is a BNPL service. 

Zip Money has low minimum monthly payments ($40 for balances under $1000) and charges a $6 fee if a user is left with unpaid credit at the end of each month. It also charges interest.

Zip Pay is accepted at many stores and online shops, and even offers users the option to pay their bills through the platform. Users can link Zip to their Apple Wallet or Google Pay to ‘Tap and Zip’ payments.

Zip Pay charges $5 per missed payment and performs credit checks on users.

Zip also purchased Quadpay in August 2020, accelerating its growth into the US market.

Recent financial performance

In Zip’s third-quarter results for FY21, the company announced record revenue of $144.4 million – up 80% on the previous corresponding period (pcp).

It also recorded its largest number of transactions, with customers using the platform for 12.4 million purchases. This represents a 195% increase since the pcp.     

Recent share price performance

The Zip share price was not hit as badly as others in the tech sell-off, coming out the other side with a year-to-date gain of 53%. It’s also up 309% over the last 12 months.

Zip has a market capitalisation of $4.9 billion, with approximately 552 million shares outstanding.

Sezzle Inc (ASX: SZL)

Business model

Sezzle’s BNPL service is similar to the Afterpay model, where a quarter of a purchase is paid upfront, and the other three quarters are paid at two-week intervals thereafter.

If a Sezzle user is more than 2 days late on a payment, their account is deactivated and unusable until they reactivate it and pay a $10 fee. Users have the ability to reschedule the payment once on any order they make.

Sezzle doesn’t conduct credit checks on users, although it reserves the right to.

Recent financial performance

The latest results we have for Sezzle are from its 2020 annual results. Within them was an income increase that many companies can only dream of. 

Sezzle reported a net income increase of 250% over 2020, reaching $74.3 million. In addition, its active consumers and merchants also rose by 143.9% and 166.6%, respectively. 

Recent share price performance

The Sezzle share price had a massive February before 2021 fell on its head. It spent the first 10 days of March falling and the rest of the month coasting. It has recovered slightly in April.

Currently, the Sezzle share price is up 37% year to date and lifted 462% over the last 12 months. 

Sezzle has a market capitalisation of around $881 million, with approximately 199 million shares outstanding.

Humm Group Limited (ASX: HUM)

Business model

Humm is a one-of-a-kind ASX BNPL share. In fact, its got 2 BNPL services.

First is its Little Things service, which can be used for purchases under $2,000. There is no interest in Humm’s offerings, although a late payment for a Little Things purchase will result in a $6 fee. Users can choose between paying their purchase back in 5 or 10 fortnightly installations.

Humm’s Big Things service can be used for purchases worth between $2,000 and $30,000. Humm still doesn’t charge interest on Big Things purchases, but it does charge an $8 monthly fee. Users have between 6 and 60 months to pay off Big Things. New users will also have to pay between $35 and $90 to initiate a Big Things BNPL service while existing users will be charged $22. Once again, a late payment fee of $6 applies.

Recent financial performance

Humm released its half-year financial report in February, and within it was a solid performance. 

It generated a net profit after tax (NPAT) of $43.4 million, up 25.8% from the previous corresponding period. Its statutory NPAT also increased, up 15.9% to $38.6 million.

While Humm’s profit this financial half looks impressive, some of it can be attributed to its 12.7 reduction in operating expenses due to lower employee expenses from JobKeeper and reduced employee numbers. 

Recent share price performance

The Humm share price started strong in 2021, but come March, it all came undone. 

Currently, its share price is down 16% year to date. It’s still up 36% over the last 12 months, though. 

Humm has a market capitalisation of around $480 million, with approximately 495 million shares outstanding.

Splitit Payment Ltd (ASX: SPT)

Business model

Splitit is a unique ASX BNPL share in that it pre-authorises a user’s credit card for the entirety of the purchase then simply splits a payment into instalments.

For instance, if you were to use Splitit to purchase a $200 toaster in 4 payments, Spiltit would hold the $200 over your credit limit but only charge you $50 per instalment.  

To make its bucks, Splitit charges merchants a fee for their customers’ use of the service.  

Recent financial performance

Splitit released its results for the quarter ended 31 March last week.

The company recorded merchant sales volume (MSV) of US$82 million. This is an increase of 247% compared to the prior comparable quarter, but 5% less than the previous quarter.

It was a similar story for its revenue. Splitit recorded gross revenue of US$2.7 million through the first quarter, 292% more than the prior corresponding period. But, it was down from the fourth quarter’s gross revenue of US$2.9 million. 

The company states this drop is due to its risk reduction tactic of disallowing customers to use the service with their debit card. 

Recent share price performance

The Splitit share price really suffered from the tech sell-off, and it has barely started to recover. 

Year to date, the Splitit share price is down by 41%. But, it’s up 45% since this time last year. 

Splitit has a market capitalisation of around $361 million, with approximately 457 million shares outstanding.

More reading

• ASX 200 down 0.5%: Bingo & Tabcorp takeovers, BlueScope upgrades guidance
• Is it time to sell Afterpay (ASX:APT) shares?
• 2 highly rated ASX growth shares for May
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 dips, NIB soars, Perenti rises

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Humm Group Limited and Sezzle Inc. 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 PPK Group Limited (ASX: PPK) share price is gaining traction in mid-morning trade after hitting an all-time high. The surge in the boron nitride nanotubes (BNNT) producer’s shares comes after the company announced two new appointments through its partly-owned subsidiary.

Boron nitride nanotubes are used in parts for high-temperature equipment such as underground vehicles and mining equipment.

During market open, PPK shares reached a record high of $7.43. However, after some profit-taking, the company’s shares have slightly lowered to $7.38, up 1.1%.

New appointments

Investors are pushing PPK shares into new territory today after digesting the company’s latest update.

According to this morning’s release, PPK advised that its subsidiary, Li-S Energy Limited, has appointed a non-executive director and CEO.

PPK holds a 48.5% interest in Li-S Energy, which aims to revolutionise high-performance lithium sulphur battery technology.

The new addition of Ms. Hedy Cray as a non-executive director will see her bring significant experience to the board. Ms. Cray has an extensive background in industrial and employment law, equal opportunity, and workplace health and safety issues. Currently, she is a partner with Australian top-tier law firm, Clayton Utz, and is in charge of the Brisbane Workplace Relations Employment and Safety practice.

Hedy Cray also has experience in commercial and corporate strategy, risk management, corporate governance, acquisitions, company restructuring other fields.

Furthermore, Dr. Lee Finniear will head up the role of CEO for Li-S Energy. Finniear has more than 25 years of experience as a senior executive within the industry. This also includes 5 years at the helm as CEO and managing director of a NASDAQ and ASX-listed company.

Dr. Finniear is recognised for delivering innovative IoT products to business and consumer markets. He served as vice president for an Asian Pacific telecommunications operator focused on automotive manufacturers and enterprise IoT solutions.

PPK executive chair, Robin Levison welcomed the new inclusions, saying:

I am very pleased with both appointments as Hedy brings Li-S Energy very broad commercial and corporate experience while Lee is a proven Chief Executive Officer with talent and qualifications well suited to growing the Li-S Energy business.

About the PPK share price

The PPK share price has increased over the last year, moving around 135% higher for shareholders. Year-to-date performance currently stands at a gain of around 26%. 

PPK has a market capitalisation of roughly $650 million, with just a tad over 89 million shares on issue.

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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.

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The Los Cerros Ltd (ASX: LCL) share price is charging higher this morning after a pre-market update from the Aussie mining group.

Why is the Los Cerros share price climbing?

Los Cerros this morning announced the first drilling is now underway at its newly identified porphyry target, Ceibal.  The new drilling site is 1 kilometre south-west of its Tesorito South porphyry discovery. It comes after Los Cerros reported a significant intercept at the Tesorito South site earlier this month.

Ceibal forms part of Los Cerros’ 100% owned, 10,500 hectare Quinchia Gold Project in Colombia. The Project comprises a cluster of porphyry targets surrounding the Miraflores Gold Deposit. 

According to the release, Ceibal has a “substantial 800 metre x 600 metre gold, copper and molybdenum, surface soil and rock chip geochemistry anomaly”.

The Los Cerros share price has charged higher this morning following the drilling update. Shares in the Aussie gold miner are now up 32.1% since March 31 in an eventful month for investors.

The company’s dominant position in Colombia’s Mid-Cauca Gold Belt has allowed it to progress quickly in recent times. Trenching results from the new target have found significant surface gold in three channels. Those include:

• 90 metres at 1.4 grams per tonne of gold
• 75 metres at 1.2 grams per tonne of gold
• 25 metres at 1.2 grams per tonne of gold

Managing Director Jason Stirbinskis said, “The emergence of Ceibal and Tesorito West, the new deep intercept encountered while drilling south-west and below the Tesorito porphyry, is further argument that the Quinchia Gold Project is another significant hot spot on the mid-Cauca gold belt”.

The Los Cerros share price has had another strong start to a trading day in what has become a successful month.

Foolish takeaway

The Los Cerros share price has surged higher following this morning’s drilling update. Shares in the Aussie gold miner have pared back some gains but remain up more than 2% at the time of writing.

More reading

• Here’s why the Los Cerros (ASX:LCL) share price is soaring 8% today
• Why the Los Cerros (ASX:LCL) share price is rocketing 20% today

Motley Fool contributor Ken Hall 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 Reliance Worldwide Corporation Limited (ASX: RWC) share price is falling this morning. This comes after a quarterly trading update from the Aussie plumbing supplies group. Despite a positive update, the company’s shares are down.

At the time of writing, the Reliance share price is trading for $4.85, down 0.72%.

Why is the Reliance Worldwide share price down?

Reliance Worldwide this morning provided an update for the three months ended 31 March 2021 (Q3 2021). A 14% increase in consolidated net sales, which climbed to $359.4 million, was a key highlight of the update. Excluding the negative USD-AUD currency impact, net sales climbed 27% higher compared to Q3 2020 figures.

Reliance Worldwide saw strong sales increases for the quarter in all key regions. The Americas (+39%), Asia Pacific (+11%) and Europe, Middle East, and Africa (+13%) all contributed to the sales growth.

Reliance Worldwide said this reflected “buoyant demand” for plumbing products. That was on the back of increased spending on residential repairs and remodelling. A significant weather freeze in the US in February also boosted demand for the quarter. In fact, Reliance Worldwide estimates that contributed ~50% of the quarterly sales increase.

A strong domestic housing market helped boost Asia Pacific sales while strong UK plumbing supplies demand boosted the EMEA result. Reliance Worldwide said April sales are substantially ahead of the coronavirus-impacted April 2020 sales figures.

The group continues to push ahead with cost mitigation measures by passing on higher input costs on impacted products. Brass products in particular have been hit by surging copper and zinc costs in recent months.

CEO Heath Sharp said:

Pricing discussions with other channel partners are progressing and we remain confident of achieving acceptable cost recovery outcomes.

Shares in the Aussie plumbing group were up 16.5% year to date prior to the open and are outpacing the S&P/ASX 200 Index (ASX: XJO).

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Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide 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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