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The Suncorp Group Ltd (ASX: SUN) share price is slipping this morning, as the insurance and banking company reiterated its presence in flood-impacted NSW, having received more than 5,400 claims so far.

NSW is currently experiencing its worst flood event in 60 years. The ABC News reported at least 18,000 people had been evacuated from their homes in Western Sydney and the mid-North Coast. Victoria and South-East Queensland have also faced extreme rain conditions in recent days.

At the time of writing, the Suncorp share price is down 0.8%, trading for $9.91.

Let’s look closer at the company’s announcement this morning.

Boots on the ground in Port Macquarie

Suncorp advised today that it expected the number of flood claims to increase over the coming days.

The insurer said it would update the market on repair costs once incoming claims stabilised. Only then would it be able to give an accurate estimate.

Of all claims received by Suncorp so far, more than 85% relate to property damage. In terms of location, the company confirmed that NSW residents made 80% of claims.

Words from the management

Suncorp CEO Steve Johnston commented on the challenges facing residents of flood-affected areas and comforted those with Suncorp’s insurance.

Our teams are on the ground in Port Macquarie, where we have seen the most claims to date, and we will deploy to other regions when it is safe to do so.

The next few weeks will be challenging for residents as they return to their homes, assess the damage and start the clean-up.

Our Customer Support Team will provide face-to-face support by arranging emergency repairs, organising temporary accommodation for customers whose homes have been severely damaged and providing cash payments for emergency purchases.

Mr Johnston also commended the federal and state governments’ speed in classing tradespeople and insurance workers as essential. Doing so has enabled Suncorp to support flooded communities without worrying about border restrictions.

 We are committed to getting our customers back on their feet as soon as possible so it is important that we can get assessors and repairers on the ground to affected regions quickly given the magnitude of this event.

Suncorp share price snapshot

The Suncorp share price is up 0.71% year-to-date and has increased by 16.75% over the last 12 months.

The insurance and banking giant has a market capitalisation of around $12.7 billion, with approximately 1.2 billion shares outstanding.

More reading

• 8 ASX 200 shares rated as ‘outperform’ by brokers
• How are ASX insurance share prices performing during NSW’s floods?
• Why the Suncorp (ASX:SUN) share price is tumbling lower today
• Morgans just added this ASX 200 share to its model portfolio

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 Netwealth Group Ltd (ASX: NWL) share price is crashing lower on Thursday morning.

At the time of writing, the investment platform provider’s shares are down over 15% to $13.50.

Why is the Netwealth share price crashing lower?

Investors have been selling Netwealth’s shares this morning following the announcement of changes to its deposit arrangement.

Netwealth notes that as a result of COVID-19 and current global economic conditions, the Reserve Bank of Australia (RBA) has reduced and maintained official interest rates at a lowly 10 basis points. It has also provided substantial liquidity to the Australian Banking sector at historically low rates and credit spreads.

In light of this and the reduced cost of funding for banks, the company revealed that its agreement with Australia and New Zealand Banking GrpLtd (ASX: ANZ) in relation to the interest payable on the total pooled cash transaction account is to be terminated in 12 months. This is pursuant to the terms of the agreement.

At present, the agreement provides a margin of 95 basis points above the overnight cash rate and will continue for 12 months.

Investors may be concerned that this could have an impact on funds under management inflows and margins.

What now?

Netwealth advised that it is currently in negotiations with ANZ and other banks to establish an alternate facility and deposit rate.

Furthermore, it notes that previously announced reductions in the RBA overnight rate, which reduced its cash administration margin by 40 basis points, will be progressively recovered when rates increase in the future.

It also reminded the market that it remains debt free and in a strong financial position.

HUB24 shares hit hard

Elsewhere, although rival HUB24 Ltd (ASX: HUB) has not commented on the matter, investors appear concerned that it will also have its arrangements terminated and have been panic selling its shares.

At the time of writing, the HUB24 share price is down a disappointing 13.5% to $20.97.

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• How to counter the ASX 200’s Achilles heel
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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 Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Piedmont Lithium Ltd (ASX: PLL) share price is among the worst performers on the All Ordinaries index on Thursday morning.

In early trade the lithium developer’s shares were down as much as 17% to 90.5 cents.

However, despite this decline, the Piedmont Lithium share price is still up a massive 145% since the start of the year.

Why is the Piedmont Lithium share price crashing lower?

Today’s decline appears to be a delayed response to the completion of its US$122.5 million capital raising earlier this week.

Overnight on Wall Street, Piedmont Lithium’s Nasdaq-listed shares fell a sizeable 16.4%.

Capital raising

Piedmont Lithium raised the US$122.5 million at an issue price of US$70.00 per American Depositary Share (ADS), which equates to 90.9 Australian cents per ASX-listed share.

The latter was a 15% discount to the Piedmont Lithium share price before its trading halt.

After costs, the company expects to receive proceeds of approximately US$114.5 million.

What are the funds for?

Piedmont Lithium intends to use the net proceeds from the offering to continue the development of the Piedmont Lithium Project in North America.

This includes definitive feasibility studies, testwork, permitting, further exploration drilling, mineral resource estimate updates, and ongoing land consolidation.

In addition to this, some of the proceeds will be used to fund its investment in fellow lithium developer Sayona Mining Ltd (ASX: SYA) and other possible strategic initiatives.

In respect to its Sayona Mining investment, the company intends to acquire up to 19.9% of Sayona Mining and 25% of Sayona Quebec.

After which, the Sayona Quebec business will ultimately supply Piedmont Lithium with the greater of 60,000 tonnes per annum or 50% of its spodumene concrete production.

In light of the above, it certainly look likely to be a busy 12 months for Piedmont Lithium and its shareholders.

More reading

• Piedmont Lithium (ASX:PLL) successfully completes US public offering
• Piedmont Lithium (ASX:PLL) shares in trading halt after proposed US public offering
• Victoria to tax electric vehicles? What this could mean for ASX lithium shares
• These are the top performing ASX lithium stocks in 2021 so far
• Why the Piedmont Lithium (ASX:PLL) share price is zooming 9% 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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Shares in ASX technology company Bigtincan Holdings Ltd (ASX: BTH) enjoyed a stellar run over the latter half of 2020. In fact, by late October, the Bigtincan share price had reached a record high of $1.60. But since then, the company’s shares have well and truly come off the boil, retreating by almost 44% to just 88.5 cents at the time of writing.

Currently, the Bigtincan share price is trading at its lowest level since August of last year, reversing more than 6 months worth of gains.

Company background

Bigtincan develops sales and marketing software for business clients. It services a range of different industries from healthcare and life sciences to manufacturing and financial services. Bigtincan’s software is designed to automate manual processes, improving customer and stakeholder engagement. Additionally, the software helps boost productivity, and drive better sales and marketing outcomes.

Bigtincan’s flagship Sales Enablement Automation Platform is a centralised, integrated software solution. The platform is designed to support businesses throughout their entire sales and marketing lifecycle. This starts from onboarding, training and coaching new staff, and assists in engaging with customers and providing accurate, dynamic reporting.

What drove the Bigtincan share price gains in 2020?

Despite the challenges posed by the COVID-19 pandemic, FY20 was an exciting year for the company. Bigtincan made three key strategic acquisitions during FY20. The most in its history. It also delivered some strong results in tough market conditions.

Revenues surged 56% higher in FY20 to $31 million, with a great deal of that uplift coming from subscription revenue. Consequently, subscription revenue increased by 57% to $29.5 million. Customer retention rates also increased by 2% to 89%, indicating significant brand loyalty among Bigtincan’s client base.

More recent news

Bigtincan released its first-half FY21 results to the market last month. It was another strong result, with revenues increasing by 33% versus the first half of FY20 to $18.4 million. It also delivered annualised recurring revenues that were up 50% on the prior corresponding period to $48.4 million.

The company also kept up its rate of M&A activity, making two additional acquisitions during the half. Its most significant acquisition was of sales enablement software developer Clearslide. Clearslide is an international industry leader with over 500 customers on multiple continents.

Outlook for Bigtincan

The company also reaffirmed its FY21 guidance. Annualised recurring revenue is expected to come in at the upper end of the $49 million to $53 million band. Statutory revenue is anticipated to be in the range of $41 million to $44 million. This would imply year-on-year growth of at least 32%.

However, this news did little to buoy the Bigtincan share price. Shares fell almost 9% the day of the company’s first-half results announcement, and they have only increased marginally since then. With all signs pointing to another year of solid growth, it will be interesting to watch Bigtincan shares perform over the remainder of FY21.

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Rhys Brock owns shares of BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN 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 Incannex Healthcare Ltd (ASX: IHL) share price is climbing on the back of a positive update regarding its therapy, IHL-675A.

At the time of writing, the healthcare company’s shares are up 5%, trading at 21 cents.

What did Incannex announce?

The Incannex share price is on the move today as investors appear pleased with the company’s progress.

In its release, Incannex advised that it has been granted a pre-IND meeting with the United States Food and Drug Administration (FDA). The meeting follows the company’s submitted information package, which contained details of IHL-675A and its medical benefits.

IHL-675A is a novel therapy that comprises hydroxychloroquine (HCQ) and cannabidiol (CBD) for the potential treatment of Acute Respiratory Distress Syndrome (ARDS) and sepsis-associated Adult Respiratory Distress Syndrome (SAARDS).

Incannex stated that the FDA is scheduled to provide feedback on the development proposal for IHL-675A by 21 April 2021. Once received, the company will seek to finalise clinical development plans with suggestions from the FDA.

The purpose of the pre-IND meeting is to explore the fastest pathway for IHL-675A to be given its registration stamp.

ARDS is a type of respiratory failure which collects fluid into the air sacs of the lungs. This is often caused by infection or trauma and can result in death if not treated. It is estimated that 10% to 15% of patients admitted to intensive care suffering from ARDS.

SAARDS, caused by infection, is associated with lung, urinary tract, stomach, skin infections and COVID-19 viral infections.

Management commentary

Incannex CEO and managing director Joel Latham welcomed the positive outcome, saying:

The United States is the largest pharmaceutical market in the world, so being granted a Pre-IND meeting review with FDA represents an important milestone for our company and a strong foundation for the clinical development of IHL-675A.

Our preclinical studies have demonstrated that IHL-675A has the potential to be a platform drug applicable to the treatment of multiple indications. We anticipate that the work completed on the FDA information package for IHL-675A for ARDS and SAARDS will assist us with hastening submissions to FDA for the other indications being pursued.

About the Incannex share price

The Incannex share price has gained more than 500% in the past 12 months and is up almost 30% year-to-date. The company’s shares reached a multi-year high of 29.5 cents in the last month.

Incannex commands a market capitalisation of around $211 million, with roughly 1 billion shares on issue.

More reading

• Here’s why the Incannex (ASX:IHL) share price is up 10% today.
• Up 300% in 1 year, what’s driving the Incannex Healthcare (ASX:IHL) share price?

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 Accent Group Ltd (ASX: AX1) share price is pushing higher on Thursday morning.

At the time of writing, the footwear focused retailer’s shares are up 1.5% to $2.35.

Why is the Accent share price rising?

Investors have been buying Accent shares this morning following the release of an analyst day presentation.

While the presentation didn’t include a trading update, it did come with some valuable information for investors and shareholders.

Store network growth

Accent is continuing to grow its store network and expects to add 90 stores across its numerous brands during FY 2021.

This will bring the total stores in its network up to 609. Given how many retailers have closed down over the last 12 months, this store growth appears to demonstrate the strength and resilience of its business.

New store brand

The company has been busy launching new store brands over the last couple of years. This includes Pivot, Stylerunner, and Subtype (Sneaker LAB).

Management isn’t resting on its laurels and has announced a new store brand launch this morning – 4 Workers.

The presentation explains that 4 Workers, which will open its first store in May, is designed to appeal to workers such as nurses, chefs, tradies, among others. It will stock footwear and clothing that caters to the healthcare, hospitality, construction, and corporate sectors.

Management believes there is a significant opportunity to capture share in a fast growing market segment.

Loyalty programs

Accent also spoke about the success it is having with its loyalty programs.

It now has over 3.3 million MyFit members and has recently launched the Skechers Insider program. The latter has been a huge success, with 188,000 members joining the program within two weeks of launch.

Accent share price performance

Following today’s gain, the Accent share price is now up 49% over the last six months.

One broker that thinks it can go higher is Bell Potter. Last month its analysts put a buy rating and $2.65 price target on its shares.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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 Qantas Airways Limited (ASX: QAN) share price is lifting slightly today after the competition watchdog approved its alliance with American Airlines Group Inc.

The co-operative agreement needed permission from the Australian Competition and Consumer Commission (ACCC) because it otherwise risks breaching competition laws.

The new 5-year approval allows Qantas and its budget brand Jetstar to collaborate with American Airlines on trans-Pacific routes. These include flights to and from the US, Canada and Mexico.

The Qantas share price fell 1.54% on Wednesday, while American Airlines lost 2.07% overnight.

ACCC commissioner Stephen Ridgeway said the alliance was approved because the public benefits outweighed any anti-competition potential.

“Passengers travelling on trans-Pacific routes are likely to benefit through enhanced products and services, including a greater likelihood of increased capacity and new routes, increased connectivity and improved schedule choice.

“Loyalty program benefits and improved lounge access, cost savings and efficiencies are also likely to be a result.”

The ACCC conceded that the fruits of the alliance won’t be seen until international travel picks up after the COVID-19 pandemic.

Great deal for Australians travelling to North America

The deal allows the airlines to synchronise on marketing and sales, pricing, scheduling, freight, inventory, frequent flyer schemes, airport lounges, procurement and service standards.

“The alliance is unlikely to result in any significant public detriment,” said Ridgeway.

“The ACCC considers that American Airlines would be unlikely to operate its own trans-Pacific services or materially expand its trans-Pacific capacity and frequency without its alliance with Qantas.”

The commission first approved the alliance back in 2011 for a 5-year term, then renewed it in 2016. Qantas and American approached the ACCC in October for another 5-year term.

The ACCC authorisation gives the airlines legal protection for actions that might otherwise get them in trouble for their anti-competitive nature.

Qantas last estimated that international flights might resume by the end of October, while New Zealand travel may restart in July.

At the time of writing, the Qantas share price is trading at $5.13.

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Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. 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 McPherson’s Ltd (ASX: MCP) share price is surging notably higher on Thursday morning.

At the time of writing, the personal care and beauty products company’s shares are up 14% to $1.39.

Why is the McPherson’s share price surging higher?

Investors have been fighting to get hold of shares this morning after McPherson’s announced the receipt of a takeover approach.

According to the release, Gallin Pty Ltd has made an unconditional on-market takeover offer of $1.34 cash per share.

While this represents a 9.8% premium to its last close price, it is a very opportunistic 60% discount to its 52-week high.

What is Gallin Pty Ltd?

A separate release explains that Gallin has been incorporated specifically for the purpose of acquiring an interest in McPherson’s.

All of the shares in Gallin are owned by Bennamon Pty Ltd, which is wholly owned by Kin Group, which is ultimately controlled by the Geminder family. Kin Group also owns a significant stake in Pact Group Holdings Ltd (ASX: PGH), among many other investments.

Gallin has been quietly building up a position in McPherson’s over the last few months and, prior to today, owned a 4.95% stake.

“McPherson’s has lost its way”

Gallin’s Director, Nick Perkins, believes McPherson’s has lost its way and needs new leadership.

He said, “McPherson’s is a business that has lost its way and is in urgent need of reinvigoration across its strategy, governance, and leadership. The company’s performance has disappointed shareholders for some time despite owning a number of quality, attractive brands across key consumer markets.”

“Now investors face a further extended period of uncertainty, including a lack of visibility on the current performance of sales of the Dr. LeWinn’s product range into China. Although highly uncertain and with no guarantee of success, McPherson’s urgently needs to undertake a full operational and strategic review with a view of turning around the business. We have the capital, capability, wherewithal and patience to do this, while shareholders have an opportunity to receive cash now at an attractive premium.”

Gallin also took aim at management’s poor M&A track record, its history of one-off adjustments, and wasted capital.

It concluded: “McPherson’s also has a relatively poor M&A track record and a history of recognising “one-off” adjustments. Notably, between FY16 and 1H FY21 there has been c. $56.7 million4 in one-off impairments, inventory write-downs and restructuring costs. Moreover, the latest downgrade to the outlook on 1 December 2020 has further eroded market trust having come approximately 1 month after McPherson’s raised fresh capital from shareholders.”

More reading

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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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In morning trade the Brickworks Limited (ASX: BKW) share price is rising following the release of its half year results.

At the time of writing, the building products company’s shares are up 2.5% to $19.41.

How did Brickworks perform in the first half?

For the six months ended 31 January, Brickworks reported a 4% decline in revenue to $432 million. This comprises Australian revenue of $330 million and North American revenue of $102 million.

It was a similar story for the company’s earnings before interest and tax (EBIT). Half year EBIT was down 6% over the prior corresponding period to $127 million.

This was driven partly by a 33% decrease in North American EBIT to $4 million following significant disruption by the COVID-19 pandemic. It partially offset a 60% lift in Australian EBIT to $16 million, which was underpinned by cost reductions.

Once again, the company’s Property Trust joint venture with Goodman Group (ASX: GMG) was its saving grace. It helped its Property business generate EBIT of $92 million for the half. Management notes that the business benefited from very favourable revaluations and profit on the sale of land.

On the bottom line, Brickworks posted an underlying net profit after tax of $90 million, which was down 10% compared to last year. However, on a statutory basis, which includes significant items, Brickworks’ net profit increased 22% to $71 million.

Positively, despite the decline in underlying profit, the Brickworks board has increased its interim dividend by 5% to 21 cents per share. This maintains its 45-year record of increasing dividends.

Outlook

Brickworks Managing Director, Mr. Lindsay Partridge, appears cautiously optimistic on the future. This is thanks to its conservative gearing, its diversified portfolio of attractive assets, and improving demand.

He said: “Development activity within the Property Trust is continuing at an unprecedented scale. This includes the construction of new facilities to meet lease pre-commitments across four of our Estates in Sydney and Brisbane. The completion of these facilities within the next two years will result in gross rent within the Trust increasing by over 40%, with significant further land remaining for development.”

Mr Partridge expects its Australian operations to perform strongly in the short term.

“Within Building Products Australia, the short-term outlook is positive, with demand gathering momentum in recent months. As demand grows, we anticipate sales volume will be limited by the availability of tradespeople such as brick layers and roof tilers, and this is likely to extend the existing pipeline of work, resulting in an elevated period of activity for at least a year. However, looking beyond the current stimulus induced surge in activity, significant uncertainty remains,” he explained.

Positively, the Managing Director notes that demand is recovering in the North American market.

“In North America, we have seen a strong recovery in demand during March, with improved weather and increased optimism of a stimulus led recovery. Daily order intake is now back to pre-pandemic levels, and as conditions continue to normalise, we are confident that our North American operations will deliver improved earnings and growth for many years to come.” “WHSP is expected to deliver a stable and growing stream of earnings and dividends over the long term,” Mr Partridge concluded.

More reading

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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 Brickworks. 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 Starpharma Holdings Limited (ASX: SPL) share price is pushing higher on Thursday morning.

At the time of writing, the dendrimer products developer’s shares are up 3.5% to $2.10.

Why is the Starpharma share price pushing higher?

Investors have been buying Starpharma’s shares this morning following the release of a positive announcement.

According to the release, the company has signed a sales and distribution agreement for its Viraleze antiviral nasal spray with Lloyds Pharmacy and the McKesson Group in the United Kingdom.

Lloyds Pharmacy and the McKesson Group is one of the largest pharmacy groups in the UK and is also a major wholesaler. It currently operates approximately 1,400 pharmacies across the country and supplies to over 14,000 independent UK pharmacies.

The release explains that Viraleze will be available online next week and is expected to be instore in April.

Starpharma’s sales and distribution agreement with the pharmacy group incorporates a reciprocal exclusivity arrangement for Viraleze. This includes significant investment in marketing by Lloyds, both online and instore.

What is Viraleze?

Viraleze is an antiviral nasal spray that was developed by Starpharma based on an already marketed active.

It contains astodrimer sodium (SPL7013), which is virucidal and irreversibly inactivates >99.9% of coronavirus/SARS-CoV-2 within one minute. Importantly, it has also demonstrated potent antiviral activity against multiple strains of SARS-CoV-2.

Starpharma’s CEO, Dr Jackie Fairley, was very pleased with the agreement.

She said: “We are excited that VIRALEZE will be available from next week in the second largest pharmacy chain in the UK.”

“The LloydsPharmacy/McKesson team shares Starpharma’s enthusiasm and commitment to bring VIRALEZE antiviral nasal spray to UK consumers as they emerge from their latest lockdown. LloydsPharmacy represents an ideal partner for this product.”

Lloyds Pharmacy’s Head of e-Commerce and Category Management, Mr John Acland, added: “We are excited to have secured exclusive rights to VIRALEZE for the UK. It is a highly innovative product with compelling customer benefits and is well supported by an impressive body of quality science and research.”

“We hope VIRALEZE will bring LloydsPharmacy customers added peace of mind and protection as we enter the next chapter of the pandemic and re-emerge back into work, school and social settings.”

More reading

• Why the Starpharma (ASX:SPL) share price is charging higher today
• Which ASX healthcare shares saw the biggest gains in February?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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