Tag: Motley Fool

  • Why the Neometals (ASX:NMT) share price is shooting 8% higher

    rising asx share price represented my man in hard hat giving thumbs up

    The Neometals Ltd (ASX: NMT) share price is rocketing today after the company reported the latest nickel and palladium finds at its Western Australia mine.

    As of writing, the miner’s share price is trading at 45 cents, up 8.5%. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.08% lower.

    Let’s take a closer look at the announcement and how it’s affecting the Neometals share price.

    What’s in the update?

    In today’s release, Neometals gave an update to the nickel and palladium deposits at its Armstrong Deposit at its Mt Edwards Project in WA.

    Nickel

    Neometals advised there were at least 13,200 tonnes of pure nickel at the deposit. Neometals tested the nickel at the site to see if it could be floated. Floatation is the process where the metal is separated from the ore.

    Nickel is currently trading for US$16,782.25 per tonne. The metal’s price is up 1.17% today and 4.65% this month. It is, however, down 14.6% since hitting a 5-year low earlier in the year.

    According to Trading Economics, the price fell as supply levels increased. In economics, this is known as the laws of supply and demand. The website does forecast the nickel price to increase in the long run as demand for electric vehicles increases.

    Palladium

    As a bonus for the Neometals share price, the company also announced the discovery of palladium, and to a lesser extent platinum, during its routine nickel mining operations.

    In its statement, the company said it would further explore the discovery to see if there was enough of the metal at the site to be commercially viable. The company claims the location and concentration of nickel correlate with the palladium.

    Palladium is currently trading on the commodities market for US$2,624.74 per troy ounce. It’s only slightly down from its 1 year high of US $2,684.73 per troy ounce of 4 days ago.

    Once used almost exclusively in jewellery, Palladium is now mostly used as a catalyst converter in petrol engines. Its demand, and price, is forecast to increase over the long term as environmental regulations become more stringent.

    Neometals share price snapshot

    The Neometals share price is up 178% over the past 12 months. Its share price has been lifting alongside the prices of the metals and lithium as demand for these elements increases.

    Neometals has a market capitalisation of $237 million.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    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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  • ASX stock of the day: Nitro Software (ASX:NTO) shares rocket 11%

    The letters PDF on a red banner with a down arrow representing falling Nitro Software share price

    The Nitro Software Ltd (ASX: NTO) share price is on fire today. Nitro shares have rocketed 11.36% higher at the time of writing to $2.94 a share after closing at $2.64 yesterday and opening at $2.68 this morning. But at one point today, the Nitro share price was all the way up to $3.02, a rise of more than 14%. Today’s moves continue the momentum that Nitro Software has been enjoying since early March. Since 9 March, Nitro shares are up roughly 30%. Not bad for a month’s work. The shares are also up ~125% over the past 12 months, although they are also close to 20% off the nitro 52-week high of $3.66 that we saw in October last year.

    So who is Nitro Software? And why are Nitro shares rocketing today?

    Exploding the Nitrocrate

    Nitro Software might sound like something out of a bandicoot-based game from the ’90s. But perhaps unsurprisingly, it’s not. Nitro specialises in software that helps individuals and businesses work with PDF documents. PDFs are a format for electronic documents I’m sure we’d all be reasonably familiar with. However, what you might not be familiar with is the PDFs intricate history. Unlike most document formats, the PDF format was privately developed by the US company Adobe Inc (NASDAQ: ADBE). As such, commercial use of PDFs can often bring licensing costs and difficulties. That’s where Nitro comes in. 

    The company offers a range of products, all delivered under a Software-as-a-Service (SaaS) model, where users pay a monthly fee for use of the software. These allow users to create, convert, edit and annotate PDF files, as well as various cloud-based storage and verification features. Nitro also allow users to ‘eSign’ documents, which is a feature that is expanding rapidly in today’s workplaces.

    Why are Nitro Software shares rocketing today?

    It’s not immediately obvious why the Nitro share price is rocketing so enthusiastically today. The last major piece of news out of the company was an announcement that the company’s executive chairman Kurt Johnson would have his contract extended by one year

    However, Nitro did release its full-year results for FY2020 back in February, which investors might be reconsidering lately. In these results, Nitro reported revenue growth of 13% to $40.2 million, $27.7 million of which was annual recurring revenue. Subscription revenue also grew strongly, up 61% year on year. Nitro ended up delivering an operating loss of $2.4 million, which far exceeded the guidance of a $4 million loss. The company also told investors that it expects annual recurring revenue to grow between 41-51.6% in FY2021. 

    As we reported at the time, the Nitro share price actually fell when these numbers were released, but perhaps investors have had a change of heart over the past month or so.

    Another factor that might be at play is broker bullishness.

    As my Fool colleague James Mickleboro reported last month, broker Morgan Stanley recently kept its overweight rating on Nitro and raised its price target for Nitro shares to $3.70 a share. Perhaps investors are jumping on Morgan Stanley’s train here. 

    Whatever the reason, it’s certainly been a good day, and month, to hold Nitro shares. On the current share price, Nitro Software has a market capitalisation of $582.1 million

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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    Sebastian Bowen 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 Adobe Systems. The Motley Fool Australia has recommended Adobe Systems and Nitro Software 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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  • What’s been going on with the ELMO Software (ASX:ELO) share price?

    Share market uncertainty

    Shareholders of ASX tech company ELMO Software Ltd (ASX:ELO) have had to endure their fair share of volatility over the last 18 months. After soaring to a high of over $8 pre-COVID, the ELMO share price plunged more than 50% lower during the March crash last year.

    Shares in the payroll software company rebounded just as quickly, and by early May were back up close to $8 again. However, they again underperformed over the second half of the year, and – despite a brief rally in December and January – they have now slid all the way back down to just $5.22.

    What has driven the volatility in the ELMO share price?

    It’s hard to separate ELMO’s yo-yoing share price in March and April of last year from broader investor uncertainty around the trajectory of the COVID-19 pandemic. However, share price dilution may have precipitated the decline seen later in the year.

    In response to the market headwinds faced during the early stages of the pandemic, ELMO – like many ASX companies – sought to raise precautionary capital through equity raises and private placements. In May, the company announced that it was planning to raise $70 million through an institutional placement, and a further $20 million through a share purchase plan offered to existing shareholders.

    However, because shares offered under these capital raisings are often available at a discount, they generally put downward pressure on a company’s share price. And this may have been what happened to the ELMO share price after it dropped from its May high.

    It also probably didn’t help that ELMO only delivered at the bottom end of its revenue guidance range in FY20. The company had previously stated it expected full-year revenues of between $50 million and $52 million – but managed to only just scrape across the line with $50.1 million.     

    More recent results

    ELMO’s first-half FY21 results were more encouraging. Total revenues came in at $30.6 million for the half, an increase of almost 30% over first-half FY20. Annualised recurring revenue was $74.2 million, an uplift of 43%, while earnings before interest, tax, depreciation and amortisation expenses (EBITDA) was close to breakeven at -$0.8 million.

    Other activity

    The company has been putting the capital raised last year to good use, making several strategic acquisitions over recent months.

    In October, ELMO acquired UK-based HR platform Breathe. The acquisition further expands ELMO’s footprint in the UK, and also gives it access to the small business market. Breathe had been growing quickly, with annualised recurring revenues already approaching $6.5 million.

    In December, ELMO continued to accelerate its UK expansion by acquiring expense management platform Webexpenses. ELMO claimed Webexpenses has complimentary technology to ELMO’s existing product suite, and provides ample cross-selling opportunities and other synergies.

    Outlook

    In the company’s first-half FY21 results, it reaffirmed its outlook for full-year revenues of between $65 million and $71 million, including the revenues from the newly acquired Breathe and Webexpenses platforms. It also stated that it expected EBITDA in the range of -$2.4 million and -$7.4 million.

    Shareholders will surely be hoping that ELMO can deliver towards the top end of those guidance ranges this year and reduce some of the volatility in the company’s share price.

    Where to invest $1,000 right now

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    Rhys Brock owns shares of Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia has recommended Elmo Software. 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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  • Kazia (ASX:KZA) share price slides despite positive update

    A doctor or medical expert in COVID protection adjusts her glasses, indicating growth or strong share price movement in ASX medical, biotech and health companies

    The Kazia Therapeutics Ltd (ASX: KZA) share price is backtracking today despite announcing encouraging data from its paxalisib phase II study. At the time of writing, the biotech company’s shares are fetching $1.81, down 3.72%.

    What did Kazia update the ASX with?

    Investors appear unfazed by the company’s latest release, sending Kazia shares lower.

    In its announcement, Kazia shared some key points of its ongoing phase II study of paxalisib in glioblastoma – a common and very aggressive type of brain cancer.

    They are as follows:

    • Pharmacokinetic (PK) data which shows how long paxalisib remains in the human body, strongly supports 60 milligrams once daily dosing.
    • Analysis of food effect shows no significant difference between taking paxalisib with food compared on an empty stomach.
    • Study remains ongoing, with a number of patients still in follow-up phase.

    The final data is expected to be released in the second-half of the current calendar year.

    Kazia noted that the data is subject to a poster presentation at the Association of Cancer Research (AACR) annual meeting. The virtual event will run from 10 April to 15 April, and from 17 May to 21 May.

    Words from the CEO

    Kazia CEO, Dr James Garner commented:

    This is extremely useful and encouraging data, as we begin to compile regulatory documentation for paxalisib and give shape to its potential commercial approval. These results give us great confidence that we are administering the drug at the right dose, at the right frequency, and under the correct conditions. Moreover, the data helps to confirm the approach that we have taken in the GBM AGILE pivotal study.

    Dr Garner went on to further add:

    A lot of our efforts at present are focused on assembling the complex package of scientific information that is required to secure FDA approval for any new drug. Today’s data provides one more piece in that jigsaw. More broadly, the phase II study is drawing to a conclusion, and we expect to be able to share final data in the second half of this year.

    Kazia share price summary

    Over the past 12 months, the Kazia share price has soared more than 300%, reflecting positive investor sentiment. Year-to-date alone, the company’s shares have gained above 50% for shareholders.

    Based on the current share price, Kazia commands a market capitalisation of roughly $230.3 million, with 126.5 million shares outstanding.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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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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  • Insiders have been buying NextDC (ASX:NXT) and this ASX share

    woman whispering secret regarding asx share price to a man who looks surprised

    Every so often, I like to take a look to see which shares have experienced meaningful insider buying. This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors.

    A number of shares have reported meaningful insider recently. Here are a couple which have caught my eye:

    ELMO Software Ltd (ASX: ELO)

    According to a change of director’s interest notice, one of this cloud-based human resources and payroll platform provider’s directors has been buying shares this month.

    The notice reveals that Independent Non-Executive Director, Kate Hill, bought a total of 9,870 shares via an on-market trade on 1 April. Ms Hill paid $49,945.76 for the shares, which equates to an average of $5.06 per share.

    With the ELMO share price down by over a third from its 52-week high, it appears as though this director sees value in the company’s shares at this level.

    One broker that might agree is Morgan Stanley. Its analysts currently have an overweight rating and $9.70 price target on ELMO’s shares.

    Nextdc Ltd (ASX: NXT)

    Another change of director’s interest notice reveals that one of this data centre operator’s directors has taken advantage of the recent weakness in its share price to add to her position.

    According to the notice, the company’s Non-Executive Director, Jennifer Lambert, snapped up 6,154 shares through an on-market trade on 7 April. Ms Lambert paid an average of $11.35 per share for the parcel, which equates to a total consideration of ~$69,500.

    As with ELMO, the NextDC share price is trading a long way from its 52-week high of $14.10 at present.

    Though, one leading broker believes it will not only get back there, but go even higher. This week Goldman Sachs reiterated its buy rating, added NextDC to its conviction list, and increased its price target to $15.00.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia has recommended Elmo Software. 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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  • ASX lithium shares are surging across the board. Here’s why

    A lithium battery with blue power background, indicating positive share price movement for clean ASX lithium miners

    ASX lithium shares from producers to explorers are surging across the board on Friday. This follows firmer prices and demand for battery-grade lithium, as well as a positive flow of news from individual lithium companies. 

    Lithium prices continue to push higher 

    Fastmarkets provides updates and commentary for recent lithium price movements. Its most recent update for the week ended Thursday 1 April highlighted: 

    • Lithium prices in China rise on active restocking while supply remains tight;
    • Seaborne Asian lithium prices tick up on persisting tight availability;
    • European and US prices post further gains on firm prices for technical-grade material.

    It noted that lithium carbonate, 99.5% Li2CO3 min, battery grade, spot price range in China rose to 88,000 to 92,000 yuan (A$17,580 to A$18,380) per tonne on 1 April, up from 85,000 to 90,000 yuan (A$16,980 to A$17,980) the prior week. 

    Fastmarkets also said the supply for lithium carbonate was more challenging than lithium hydroxide. A consumer was quoted as saying:

    In March, producers were not willing to make large sales because supply is quite tight; moving into April, they are increasingly less willing to sell because of the rapid rally of spodumene price.

    A trader added:

    The overall supply tightness is derived from the squeezed spodumene supply from Australia. Among all, supply tightness for lithium carbonate is most acute.

    ASX lithium shares breaking higher 

    ASX lithium shares, including Galaxy Resources Ltd (ASX: GXY)Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE), have all managed to push higher into 2-3 month highs after being range-bound throughout February and March. 

    At the smaller end of town, explorers have been pushing out a stream of positive results, including: 

    It seems ASX lithium shares are heating up on both higher prices and an anticipated surge in demand as the world focuses on cleaner technologies and net-zero emissions. 

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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    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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  • ‘On-time and on-budget’, Emerald (ASX:EMR) share price climbs

    miner holding gold nugget

    The Emerald Resources NL (ASX: EMR) share price is climbing today after the company announced its Okvau Gold Project is on track for commissioning in the second quarter of 2021.

    The Emerald share price has risen 1.2% today to 82 cents per share.

    Emerald is engaged in mineral exploration in Cambodia, with the company’s major focus its Okvau Gold Project.

    Emerald’s Okvau Gold Project

    Emerald reported today that its Okvau mine is tracking on-time and on-budget for commissioning and its first gold pour over the next few months.

    The Okvau mine’s first gold production is expected to make the company a more than 100,000 ounce per annum gold producer.

    The company has ticked various construction boxes over the past two months. It’s completed construction of the Okvau substation, with testing works at an advanced stage in preparation for energising the plant. 

    It’s also erected structural steel and platework in the primary crushing, transfer station and stockpile areas, and completely erected the pebble crushing machinery. 

    Mining activities at Okvau so far have focused on in-pit waste movement and the first high-grade ore was mined and stockpiled last month. Excluding transport, Emerald is currently under budget for every aspect of the mine construction process.

    In addition, 94% of the equipment it requires is already in Cambodia.

    What Emerald management said

    Emerald managing director Morgan Hart said it was “sensational news” given global circumstances:

    Our dedicated team in country has advanced the development of the Okvau Gold Project significantly in recent months to be on schedule for the successful commissioning of the process plant and deliver first gold production prior to the end of the current quarter.

    This represents an exceptional effort given the logistical challenges brought on by the global pandemic and done whilst maintaining first-class protocols to ensure the continued health and wellbeing of staff, contractors and stakeholders.

    Emerald share price snapshot

    The Emerald share price has doubled since May last year and is currently within 3 cents of its 10-year high set in January 2021. The company’s share price has returned 114% over the past 12 months, and is beating the basic materials sector by 75%.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    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.

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  • The Afterpay (ASX:APT) share price is up almost 20% this month

    Two happy people use their hands as binoculars, indicating a positive ASX share price or on watch

    The Afterpay Ltd (ASX: APT) share price has made a strong rebound in April following a significant underperformance in late-February and March

    Why the Afterpay share price is bouncing back this month 

    The Afterpay share price hit a one-month high of $123.99 this morning, or a 23% increase this month before cooling down to around $121.85 at the time of writing. That’s a gain of 17.8% this month.

    Interestingly, the company has not announced any market sensitive news or catalysts this month that could otherwise drive the share price. 

    The improvement in the Afterpay share price could be seen as a broader rally in tech shares after a brutal sell-off in late-February. The S&P/ASX Information Technology (INDEXASX: XIJ) is up almost 10% in April, after falling more than 20% between 11 February and 9 March.

    Morgan Stanley has been the only broker to provide updates for the Afterpay share price so far in April.

    The broker assessed the Commonwealth Bank of Australia (ASX: CBA) and its entry into the Australian BNPL market. CBA has made the move to undercut merchant fees which could put pressure on merchant margins for Afterpay.

    As a result, the broker reduced Afterpay’s group merchant margins by 13 basis points and Australian merchant margins by 60 basis points for FY23. 

    The Afterpay share price is the odd one out this month

    The Afterpay share price is a standout performer amongst its BNPL rivals this month. In terms of returns this month: 

    What immediately stands out is that ASX-listed BNPL shares with significant US exposure including Afterpay, Zip and Sezzle are outperforming. While Afterpay’s additional exposure to countries such as France, Spain and Italy could be a driver of its outperformance. 

    Excluding Affirm, the weaker BNPL shares also have a smaller market capitalisation relative to Afterpay, Zip and Sezzle. While Sezzle is approaching a $1 billion market capitalisation, Openpay and Laybuy have market caps of less than $200 million. 

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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    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 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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  • 2 high yield ASX dividend shares rated as buys

    janus henderson share price increasing represented by pile of australian one hundred dollar notes

    If you’re looking for some high yield ASX dividend shares to bolster your income portfolio, then look no further.

    Listed below are two shares that have been tipped to provide their shareholders with very generous yields in FY 2021. Here’s what you need to know:

    Fortescue Metals Group Limited (ASX: FMG)

    The first dividend share to consider buying is Fortescue. This iron ore producer has been a very positive performer in FY 2021 and is on course to reward shareholders with bumper dividend payments.

    This has been driven by its low costs, record shipments, and, of course, the sky high iron ore price. In respect to the latter, Fortescue achieved an average realised price of US$114 per dry metric tonne for its iron ore during the first half. This was up 42.5% on the prior corresponding period.

    Positively, the spot iron ore price is currently fetching US$172.15 a tonne. This puts the company in a position to have an even stronger second half.

    Analysts at Credit Suisse are positive on the company. They currently have an outperform rating and $23.50 price target on its shares. The broker is also forecasting a full year dividend of ~$3.61 per share. Based on the current Fortescue share price, this will be a stunning fully franked 17% yield.

    Super Retail Group Ltd (ASX: SUL)

    Another dividend share to consider buying is Super Retail. As with Fortescue, it has been performing very positively so far in FY 2021.

    During the first half, the company reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

    This allowed the retailer behind the BCF, Macpac, Rebel, and Super Cheap Auto brands to declare a fully franked 33 cents per share interim dividend.

    Analysts at Goldman Sachs are positive on the company and have a buy rating $15.00 price target on its shares.

    The broker expects Super Retail to have a strong second half, allowing it to pay a fully franked dividend of ~81 cents per share in FY 2021 (including a special dividend). Based on the current Super Retail share price, this equates to a ~6.8% yield.

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    Returns As of 15th February 2021

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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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  • Laybuy (ASX:LBY) share price climbs on March trading update

    A young woman smiling and looking happy, indicating a positive share price movement on the ASX market

    The Laybuy Holdings Ltd (ASX: LBY) share price is climbing in early-afternoon trade following the release of a trading update. At the time of writing, the buy now, pay later (BNPL) provider’s shares are trading at 93 cents, up 1%.

    Trading update

    Investors are pushing Laybuy shares higher after the company delivered a robust performance for the month of March.

    For the month ending 31 March 2021, Laybuy reported annualised (multiplied by 12) gross merchandise value (GMV) of NZ$704 million. In addition, 479 active merchants and 23,000 active customers signed on to Laybuy’s platform.

    Predominately, the United Kingdom market is the company’s largest revenue source, achieving NZ$296 million in annualised GMV for FY21. It’s worth noting that this market has significantly grown 504% over the prior corresponding year. The company said its UK merchants, along with strategic partnerships, are driving the rapid growth.

    The Australia New Zealand region closely follows with NZ$293 million in annualised GMV for the current financial year.

    In total, this reflects an increase of 159% on FY21 GMV to NZ$589 million, slightly above previous forecasts.

    Active merchants stood at 9,126 at the end of the period, representing a 75% increase from 31 March 2020. Furthermore, active customers came to 756,000, a surge of 87% over the same time frame.

    Laybuy stated that it has funding options and a capital efficient business model to facilitate future growth. The UK retail market has an addressable opportunity of NZ$757 billion, highlighting an attractive pathway.

    In addition, the company said that it was well-placed to respond to any regulatory changes in the BNPL sector.

    Laybuy share price review

    Over the past 12 months, the Laybuy share price has fallen more than 50%, with close to 30% down year-to-date. The company’s shares have been trending lower ever since its listing in early September 2020.

    Based on the current share price, Laybuy presides a market capitalisation of roughly $163.1 million, with 174.4 million shares outstanding.

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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.

    The post Laybuy (ASX:LBY) share price climbs on March trading update appeared first on The Motley Fool Australia.

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