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The Sezzle Inc (ASX: SZL) share price is edging higher in late afternoon trade after the payment technology company announced it has received B Corp certification.

At the time of writing, the Sezzle share price is trading 0.28% higher at $7.09. For context, the S&P/ASX 200 Index (ASX: XJO) is currently 0.46% lower for the day so far.

What it means to be a B Corp

B Corp certification means a for-profit company meets the highest standards of verifiable social and environmental performance, public transparency, and legal accountability to balance profit and purpose. This certification is awarded and regularly reassessed against stringent criteria by the non-profit B Corporation.

The purpose of the certification is to drive change for an inclusive and sustainable economy through for-profit businesses.

🎉 Happy B Corp Month! 🎉

In March, we’ll be joining our global community of almost 4,000 #BCorps to celebrate our movement to transform the global economy to benefit all people, communities, and the planet. pic.twitter.com/SL7HgqrDfV

— B Corporation (@BCorporation) March 1, 2021

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Recognisable Australian businesses that Sezzle will be joining include 4 Pines Brewing Company, ethical investing app provider Goodments, speciality tea store operator T2 Tea, and toilet paper supplier Who Gives A Crap.

What makes Sezzle B Corp worthy?

Sezzle states its mission is to ‘financially empower the next generation’, going beyond profits and Sezzle share price returns alone. The approval of filing requirements by BLab also solidifies the payment company’s ethos of ‘payments with purpose’ into its corporate governance structure. However, these feel-good quips alone are not sufficient for Sezzle to become B Corp certified.

The B Corp initiatives proposed by Sezzle include the following five commitments:

1. Planting a tree for every new, active user.
2. Being carbon neutral with certification from Climate Neutral, reducing the company’s carbon footprint.
3. Giving a full annual scholarship to the University of Minnesota to a disadvantaged student and launching a new national scholarship.
4. Providing free financial literacy and needed tools via Sezzle U.
5. Creating a non-profit fund to support causes as they arise that are in line with the company’s social mission.

Furthermore, both Sezzle’s leadership team and stakeholders see the company as helping all ages effectively manage personal finances without incurring high-interest finance charges.

Why is the Sezzle share price not doing better?

Despite receiving the certification, the Sezzle share price is not exactly setting the world on fire today and, in earlier trade, was actually falling. The payment instalment sector has suffered a challenging month or so. As fears surrounding possible overvaluation and tighter competition from the likes of Commonwealth Bank of Australia (ASX: CBA) grow, markets have sold off the space. The collateral damage for Sezzle has been a 27% share price fall in the last month. 

Some analysts are also predicting consolidation in the buy now, pay later (BNPL) space, before returning to growth longer term. Sezzle will no doubt be hoping its B Corp certification might assist the company to stand out from its peers during that process. 

More reading

• Is the Affirm share price dragging ASX BNPL shares lower?
• Is the Sezzle (ASX:SZL) share price about to sizzle?
• The Afterpay Ltd (ASX:APT) share price on watch after launch in France, Spain and Italy
• Here’s why the Sezzle (ASX:SZL) share price is crashing 5% today
• Can ASX BNPL companies like Afterpay (ASX:APT) compete with Paypal?

Mitchell Lawler owns shares of Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended 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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Australia’s leading brokers have been searching the ASX share market for opportunities to buy.

Share prices are always changing, so some businesses may become opportunities whilst others become a bit too expensive to be called buys.

At the moment, these two ASX shares are liked by a few brokers:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is still strongly rated as a buy. The ASX retail share is rated as a buy by at least five brokers, including Citi which has a price target of $6.22.

The broker is a fan of the growing count of stores, efficiencies and economies of scale. Citi thinks that Baby Bunting can add $13 million of income if it adds 20 stores in New Zealand over time. The ASX retail share only just announced its expansion plans at the half-year result to go to the new market.

Citi likes that Baby Bunting is generally more defensive than other ASX retail shares.

Baby Bunting had a strong first half of FY21, with comparable store sales growth of 15% (or 21.8% excluding Victorian stores). The gross profit margin increased by 41 basis points to 37.4% and pro forma net profit after tax (NPAT) increased by 43.5% to $10.8 million.

The CEO and managing director of Baby Bunting, Matt Spencer, said:

Maternity and baby goods are essential products for parents and parents-to-be and are less discretionary in nature. Our strong comparable store and total sales growth performance demonstrates that we continue to deliver on our strategy of growing market share.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is an ASX share that’s also liked by at least three brokers right now, including Ord Minnett.

The broker was impressed by the FY21 half-year, which led it to an increase of the broker’s profit expectations for the funds management business over the next couple of years. One stand out feature was the reduction of costs during this period of uncertainty.

Ord Minnett has a price target of $9.68 on Pinnacle Investment Management and it thinks it’s trading at 28x FY21’s estimated earnings.

Pinnacle is invested in some of the leading Australian fund managers including Firetrail, Spheria, Coolabah and Antipodes.

In the FY21 half-year result, Pinnacle reported that earnings per share (EPS) increased by 116% to 16.7 cents and the interim dividend was increased by 70% to 11.7 cents.

This performance was driven by both a high level of performance fees as well growing funds under management (FUM) from its investments. Aggregate affiliate FUM was $70.5 billion at 31 December 2020, which was up 20% from 30 June 2020.

Net inflows for the first half was $5.5 billion, including $1.9 billion from retail investors.

Despite a number of uncertainties such as the COVID-19 pandemic, Brexit, China-US tensions, Pinnacle said that it’s “confident that our business is well placed and there is cause for optimism for what lies ahead.” It also said it’s ready to take advantage of any opportunities that may appear.

More reading

• These top 2 ASX shares should be on your watchlist
• 2 ASX shares that may be hit by Australia’s declining birth rate
• 2 ASX shares rated as strong buys by brokers
• 2 ASX shares rated as buys by many brokers
• Will the ASX share e-commerce boom last?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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 Telstra Corporation Ltd (ASX: TLS) share price came one step closer to breaking its 52-week high in trading this morning. Telstra shares opened at $3.42 today and rose as high as $3.47 a share just after 11am. That puts Telstra a whisker away from its 52-week high of $3.54 that we saw last July. However, it’s still ways off of the near-$4 levels that we saw at the start of 2020, just before the pandemic hit.

Even so, it’s been a dramatic ride for the Telstra share price over the past few months. It was only back in late October last year that Telstra was getting dangerously close to an all-time low when it hit $2.66 a share. Today’s moves mean that Telstra is now up 28% from those lows. For an old blue chip share like Telstra, expanding a market capitalisation by a third in five months is no small feat.

So why have Telstra shares been climbing to new highs?

3 reasons why Telstra shares are climbing

Well, it seems a large part of the market’s optimism when it comes to Telstra shares is stemming from the company’s announcement last week. Last Monday, Telstra told investors that it would break up the company into four separate divisions by the end of the year. These divisions would still trade under a combined ‘Telstra Group’, but would be structurally and regulatorily separate.

The new structure has also opened the door to the possibility that the InfraCo Fixed division may be able to bid for the government’s NBN network when it is eventually privatised.

But institutional investor optimism may also be helping. According to the Australian Financial Review (AFR), broker Morgans has upgraded Telstra shares to ‘overweight’, with a price target of $4 a share. That price target comes from the value that the broker sees in separating out the company. It’s also a significant upgrade from the former ‘underweight’ price target of $3 a share.

A final factor that might be in play is the news that came out of Telstra competitor TPG Telecom Ltd (ASX: TPG) last week. As we reported at the time, the long-term founder and chair of TPG, David Teoh, resigned from the company with immediate effect on Friday. Teoh was regarded as a top ASX leader and a pillar of TPG’s success. So it stands to reason that his departure is good news for any TPG competitor.

It’s likely that a combination of these reasons is behind Telstra’s recent share price success. Perhaps the next stop is Telstra’s 52-week high…

More reading

• Where to reinvest your Commonwealth Bank (ASX:CBA) dividends
• TPG Chair resignation: Is this good news for the Telstra (ASX:TLS) share price?
• Is the Telstra (ASX:TLS) share price a buy today?
• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra 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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Not even the release of a positive announcement has been able to stop the Recce Pharmaceuticals Ltd (ASX: RCE) share price from dropping today.

In afternoon trade, the biotechnology company’s shares are down 2.5% to 94 cents.

What did Recce announce?

This afternoon Recce Pharmaceuticals announced that the European Patent Office has granted patents relating to Recce 327 (R327) and Recce 529 (R529).

R327 has been developed for the treatment of blood infections and sepsis derived from E. coli and S. aureus bacteria. This includes their superbug forms.

Whereas R529 is a new synthetic polymer formulation with indication against viruses. Recce is currently undertaking initial studies of R529 to indicate any potential therapeutic effect against COVID-19.

What were the patents?

According to the release, the European Patent Office granted claims relating to the composition/method of manufacture of RECCE anti-infectives, the administration of R327 or R529 by oral, injection, inhalation, and transdermal dose applications, and the use of R327 or R529 for the treatment of viruses having a lipid envelope or coat. These includes coronaviruses, influenza viruses, HIV, hepatitis, Ross River and herpes viruses.

Management believes this is a big positive given the size of the European market. It notes that Europe represents one of the largest anti-viral therapies markets in the world, valued at US$11.40 billion (A$14.93 billion) in 2019. It is expected to reach US$21.12 billion (A$27.66 billion) by 2027.

Recce’s Chief Executive Officer, James Graham, said: “Recce’s intellectual property portfolio continues to grow in-line with our business strategy and the unprecedented global infectious disease crisis before us. Our market-monopolies reinforce our unique opportunity among a significant-range of both bacterial and viral pathogens.”

Today’s decline means the Recce share price is now down by 14% since the start of the year. Though, it is worth noting that it is up 275% over the last 12 months.

More reading

• Here’s why the Recce (ASX:RCE) share price is racing higher today

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 Macmahon Holdings Limited (ASX: MAH) share price is sinking in early-afternoon trade despite being awarded a new contract. At the time of writing, the mining services company’s shares are fetching for 19.7 cents, down 3.9%.

Contract award

Investors selling their positions on Macmahon shares despite the company’s positive announcement.

According to its release, Macmahon advised it has been selected for a surface mining contract with Anglo American.

Under the agreement, Macmahon will provide an array of surface mining services at the Dawson South mine, located in Queensland. Furthermore, this will see the provision of drill and blast, bulk and selective mining, crushing, screening, train loading, and other services.

The Dawson South mine forms part of the Dawson Mine, which is an open-cut metallurgical mine. The facility is responsible for producing coking, soft coking, and thermal coal. The mine is a joint venture agreement by Anglo American and Japan’s Mitsui Group.

The contract will have a 3-year term and is expected to generate around $200 million in revenue for Macmahon.

Both parties are yet to formally sign the mining services agreement, however, it is anticipated to occur in the near future.

Commencement of works is scheduled for July 2021.

Macmahon CEO and managing director Michael Finnegan commented:

We are very pleased to be selected for the Dawson South operation by Anglo American, a leading global mining company. We look forward to working very closely with our new client to ensure a smooth transition period and continuity of safe operations. This new project further strengthens our growing east coast presence.

Macmahon share price summary

The Macmahon share price has lifted close to 20% in the past 12 months. However, it is down 25% year-to-date. The company’s shares reached a 52-week high of 28.7 cents late last year.

Based on valuation grounds, Macmahon presides a market capitalisation of roughly $424.5 million, with over 2.15 billion shares outstanding.

More reading

• ASX quarterly rebalance: HUB24 joins ASX 200, Brainchip into ASX 300
• Why the Red 5 (ASX:RED) share price is soaring higher today
• ASX 200 rises, Rio chair will leave, Nine gets a new CEO
• Why the St Barbara (ASX:SBM) share price will be on watch today

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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Apparently last week was the best week for the Australian property market since 2018. That’s according to a report from analytics company CoreLogic, which also outlined how national auction clearance rates hit 84% last weekend.

As usual, that is great for Australians who own properties, and not so good for those who want to (or don’t want to for that matter).

But property has looked hot for months now. And yet no one from the government seems too concerned. Especially the Reserve Bank Of Australia (RBA).

Here is an excerpt from the RBA’s minutes of its meeting earlier this month on the matter:

Members concurred that housing market conditions warranted close monitoring in the period ahead…. Members also discussed the effect that low interest rates have on financial and macroeconomic stability. They acknowledged the risks…  linked to higher leverage and asset prices, particularly in the housing market…. The Board concluded that there were greater benefits for financial stability from a stronger economy, while acknowledging the importance of closely monitoring risks in asset markets.

That doesn’t sound like anyone at the RBA is panicking. And there might be a good reason for that. Like it or not, higher house prices help the economy. And not just for the ASX banks like Commonwealth Bank of Australia (ASX: CBA) that write out home loans.

Higher house prices mean new stuff

See, house prices are intrinsically tied to something economists like to call ‘the wealth effect’. Put simply, this refers to the phenomenon that if people feel richer, they are more likely to spend money. Or even borrow more money. And nothing makes an average Australian citizen feel richer than being told their house is now worth $100,000 or $200,000 more than it was a year ago.

Suddenly, that new TV, front deck or car is looking a whole lot more tempting. And viable.

And if more consumers are feeling richer and spending more, it means more cash is going into the economy. And when more cash goes into the economy, the beneficiaries are the businesses that also operate in that economy. ASX shares, in other words. Remember, it’s Eagers Automotive Ltd (ASX: APE) that might be selling those new cars. Or JB Hi-Fi Limited (ASX: JBH) supplying that new TV.

That might be what the RBA means when it says, “The Board concluded that there were greater benefits for financial stability from a stronger economy”.

So if you have money in the ASX share market, you should be welcoming higher house prices. If you already have a house, that’s a double-win. Even though rising property prices reveal a set of challenges of their own, the RBA doesn’t seem too worried. And that’s probably why.

More reading

• BlueScope (ASX: BSL) share price could get cut of Biden’s US$3tn boost
• Leading brokers name 3 ASX shares to sell today
• US markets just hit an all-time high. Is the ASX 200 next?
• Which is the better investment: An ASX share portfolio or an index fund?
• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval

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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The 8common Ltd (ASX: 8CO) share price is in the green territory after announcing to investors that it has secured a contract extension. At the time of writing, the software solutions provider’s shares are up 4.5% to 23 cents.

Let’s take a closer look and see what 8Common updated the ASX with.

Contract extension

Investors are driving the 8Common shares higher after digesting the company’s latest news.

According to its release, 8Common advised it has won a contract extension with the NSW Department of Education (NSW DoE).

Under the renewed agreement, 8common will continue to provide the Expense8 platform to the NSW DoE until March 2023. Consequently, this follows the original deal that was executed in March 2016. The original deal comprised an initial 5-year term with an attached 2-year extendable option.

Additionally, 8Common highlighted that the renewal was a result of its strong product delivery, exceptional customer service, and solid relationships with the NSW DoE.

Expense8 provides travel and expense management, and card services for over 150 entities for federal NSW and Northern Territory governments. The platform has more than 132,000 active users within state and federal departments. In the NSW DoE, 22,000 active users and 14,000 credit cards are managed.

Furthermore, the additional take up of Expense8 is expected to generate $960,000 in revenue for 8Common. Notably, in FY21 alone, the company has won over $2.5 million in contracts.

What did the CEO say?

8common CEO Andrew Bond welcomed the deal, saying:

We are exceptionally pleased to continue our relationship with the NSW Department of Education. Our ongoing relationship reflects the product delivery and user benefits of our Expense8 solution. Our ability to continue to support existing customers, execute new products and onboard new customers is a testament to our product quality as well as our robust development, R&D and operational capabilities.

We continue to see a strong pipeline of growth in 2021 and we look forward to expanding our presence with the State and Federal Government sector as well as large enterprise businesses.

About the 8Common share price

The 8common share price has jumped more than 350% over the past 12 months, with year-to-date performance sitting above 50%. The company’s shares hit a multi-year high today of 23.5 cents.

On valuation grounds, 8Common has a market capitalisation of $45 million, with roughly 200 million shares on issue.

More reading

• Treasury (ASX:TWE) and Afterpay (ASX:APT) share prices on watch
• Is the Amaysim (ASX:AYS) share price really tumbling 70% today?
• BlueScope (ASX: BSL) share price could get cut of Biden’s US$3tn boost
• Why Blackmores, Cleanspace, PointsBet, & Treasury Wine shares are sinking
• The Air New Zealand (ASX:AIZ) share price is slipping today. Here’s why

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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Motley Fool CIO Scott Phillips joined Peter Stefanovic on Sky News this morning to talk about the Brisbane lockdown, the Afterpay Ltd (ASX: APT) share price’s three-month low and the extension of tariffs on Australian wine.

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More reading

• Why Blackmores, Cleanspace, PointsBet, & Treasury Wine shares are sinking
• ASX growth shares will be VERY slow to recover. Here’s why
• 5 things to watch on the ASX 200 on Tuesday
• Afterpay (ASX:APT) share price sinks despite new product launch
• Will the ASX 200’s ‘China problem’ get worse?

Motley Fool contributor Scott Phillips owns shares of Treasury Wine Estates Limited. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Amaysim Australia Ltd (ASX: AYS) share price looks to have been plummeting today, but things aren’t always what they seem. The drop comes after yesterday’s close, which saw an end to the final day shareholders were entitled to receive a major distribution.

Amaysim is set to delist at the close of trade tomorrow, having previously sold off the majority of its business and then been taken over by WAM Capital Limited (ASX: WAM).

At the time of writing, the Amaysim share price has dropped by 69.18% and is trading at 24.5 cents.

Let’s look closer at what’s happening with the Amaysim share price today. 

Last hurrah for Amaysim shares 

The Amaysim share price seems to have dropped momentously as those shareholders awaiting the company’s ex-dividend date cut and run. But the reason for the large fall is that a significant part of Amaysim shares’ remaining value was made up of the juicy dividends resulting from the company’s sale and takeover.

Those who held shares in Amaysim at the close of trade yesterday will receive a fully franked dividend of 26 cents and a return of capital of 24 cents in late April.

They will also receive a minor distribution of approximately 10 cents in around May, as well as a final distribution of between 7 and 13 cents around October.

As a result, the Amaysim share price has fallen by 55 cents – a similar amount to what investors were guaranteed to receive. Given the value of these distributions was already priced into the Amaysim share price, it is now trading minus the approximate value of these payments.  

In late February, Amaysim announced the remainder of its business was being taken over by WAM Capital. This came following Amaysim having previously sold its energy business to AGL Energy Limited (ASX: AGL) and its mobile business to Optus Mobile. 

Previously, WAM Capital offered 70 cents in cash for each Amaysim share. That was a 15.6% premium to the one-month volume-weighted average price after the end of October.

After today, any investor still holding Amaysim shares will only be able to have their investment transferred to WAM Capital shares.

Shareholders will automatically receive one WAM Capital share for every 2.675 Amaysim shares they hold at the time of delisting.

More reading

• AGL Energy (ASX:AGL) share price slides after latest announcement
• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• Why AGL, Digital Wine, REA Group, & Xero shares are charging higher
• AGL (ASX:AGL) share price higher on structural separation plans
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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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The BlueScope Steel Limited (ASX: BSL) share price could get a boost later this week thanks to US President Joe Biden’s US$3 trillion ($3.9 trillion) recovery plan.

Biden is expected to announce the first part of his new stimulus plan on Thursday our time, according to Forbes. The new plan is called Build Back Better and is a follow up to the US$1.9 trillion American Rescue Plan.

It is expected that the first instalment of Build Back Better will focus on infrastructure, which includes rebuilding railways and bridges.

BlueScope’s Build Back Better share price boost

That requires a lot of steel and that’s good news for BlueScope as it has a significant presence in the US through its $1 billion acquisition of North Star.

The BlueScope share price may not be the only beneficiary. Other ASX building material companies with exposure to that market include the James Hardie Industries plc (ASX: JHX) share price and Boral Limited (ASX: BLD) share price.

The Biden administration has been tight-lipped on details of the Build Back Better plan so far. It’s believed that the second part of the plan will be unveiled sometime next month.

What is part two of Build Back Better?

Part two of the ambitious stimulus will focus on healthcare and childcare, according to White House Press Secretary Jen Psaki.

“We’re not quite in the legislative strategy yet, but I will say that I don’t think Republicans and the country think we should be 13th in the world as it relates to infrastructure, roads and railways,” Psaki was quoted by Forbes.

“That’s a lot of what the President will talk about this Wednesday; then he will have… another proposal that he will put forward in just a couple of weeks that will address a lot of issues that American people are struggling with–childcare and the cost of healthcare.”

Other ASX shares that may benefit from Biden’s stimulus

While it’s too early to say what the healthcare component will be, there is a chance that some other ASX shares can benefit too.

This include the CSL Limited (ASX: CSL) share price and Sonic Healthcare Limited (ASX: SHL) share price. Both have a material presence in the US.

But it isn’t all good news under Biden’s big spending plan.

The downside to big spending stimulus

Big tax hikes could be on the cards as he has made no secret about his desire to get companies and wealthy taxpayers to fund his programs.

There’s speculation that US corporate tax could jump from 21% to as much as 28%. If that comes to pass, it could trigger a long-awaited sharp drop in the US share market.

That will surely drag the S&P/ASX 200 Index (Index:^AXJO) lower in its wake.

More reading

• US markets just hit an all-time high. Is the ASX 200 next?
• Which is the better investment: An ASX share portfolio or an index fund?
• ASX 200 down 0.15%: AGL to split into two, NAB’s 86 400 acquisition receives ACCC approval
• Australia’s first cryptocurrency fraud case filed to the Federal Court
• Brokers think these ASX 200 shares will outperform the market

Brendon Lau owns shares of BlueScope Steel Limited, CSL Ltd., and James Hardie Industries plc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Sonic Healthcare 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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