Tag: Motley Fool

Are you looking for some dividend options for your portfolio this week? Then check out the two ASX shares listed below.

Both these dividend shares offer investors generous yields and appear well-placed for growth over the long term. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.

Charter Hall Social Infrastructure REIT is a real estate investment trust with a focus on high quality social infrastructure properties. The company’s portfolio includes properties such as childcare centres and government buildings. These are properties with specialist use, limited competition, low substitution risk, and long leases.

In respect to the latter, at the end of the first half of FY 2021, the Charter Hall Social Infrastructure REIT portfolio was 99.7% leased with a weighted average lease expiry (WALE) of 14 years. This helped underpin a solid profit result for the period.

Furthermore, this strong form allowed the company to increase its FY 2021 distribution guidance to 15.7 cents per unit. Based on the current Charter Hall Social Infrastructure share price, this represents a 5.15% yield.

Rural Funds Group (ASX: RFF)

Rural Funds is another ASX dividend share which benefits from ultra long leases. At the last count, the Australian agricultural property company had a WALE of 11.1 years.

And given that these leases have fixed rental increases built into them, the company is well-positioned to grow its distribution by its target rate of 4% per annum long into the future.

In FY 2021, the company intends to pay a distribution of 11.28 cents per share to its shareholders. After which, Rural Funds has provided guidance for an FY 2022 distribution of 11.73 cents per share.

Based on the current Rural Funds share price, this will mean yields of 4.8% and 5%, respectively, over the next couple of years.

More reading

• 2 ASX dividend shares for steady income in retirement
• 2 high yield ASX dividend shares to buy today
• 2 quality ASX dividend shares with generous yields
• 2 top ASX dividend shares to buy for your income portfolio
• Is Australia’s stagnant wage growth worse than we thought?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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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One of the fund managers from global investment outfit, Scott Berg from T. Rowe Price, has said that markets are in a bubble.

What’s the track record of this fund manager?

There are many different opinions out there, so it may be worth paying attention to a fund manager that has performed well.

Scott Berg has important responsibilities for different funds. One of the funds that he is involved with is the T. Rowe Price Global Equity Fund. He took over running the fund in June 2012. Since then, the fund’s net returns have been 19.4% per annum and over the last five years that fund has produced net returns of 19.9% per annum.

It’s a truly globally-focused fund, with 54% of the fund invested in US shares. At the end of February, some of its biggest 10 holdings include: Amazon.com, Alphabet, Alibaba, Evotec, Facebook, Goldman Sachs, Rivian Automotive, Apple and Charles Schwab.

“Markets are in a bubble”

The Australian Financial Review quoted Mr Berg who said that he believes some valuations have gone too far and that markets are in a new bubble.

He had a number of interesting comments about the market:

When I look at retail sentiment, when I look at some of the crazy things going on, when I look at valuations above average, I think that we’re probably somewhere in a bubble but it could be very early and this makes it really tricky to navigate.

We’re far from the peak of a bubble, in my humble estimation. But equally, I think there are a number of bubblicious-type things. And so expect volatility, expect dispersion.

When I look at retail sentiment, when I look at some of the crazy things going on, when I look at valuations above average, I think that we’re probably somewhere in a bubble but it could be very early and this makes it really tricky to navigate.

So what shares are T Rowe looking at?

Not Tesla, he apparently has sold over 90% of the position in Tesla, whilst still being optimistic about the company’s long-term prospects. He’s still positive about the electric vehicle market – as I mentioned, the fund owns a position in Rivian.

Amazon has bought 100,000 electric delivery vehicles from Rivian – showing the level of demand.

There are the shares that I mentioned that earlier in the article that the T Rowe fund owns.

He’s also thinking about growth shares that have been sold off as investors recently in the rotation to value shares.

The AFR quoted Mr Berg, who said:

What excites me about a number of these growth stocks is that it’s actually contrarian to buy Zoom video right now.

If you ask someone what the valuation of Zoom is right now, they are not even looking at it. They just say: ‘Mate, that’s not going to work for you. That was a COVID beneficiary, we’re in a value trade’.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 2 ASX shares that may be hit by Australia’s declining birth rate
• Is Temple & Webster (ASX:TPW) the best e-commerce ASX share to buy right now?
• The Regional Express (ASX:REX) share price has fallen after fresh Qantas challenge
• DUG Technology (ASX:DUG) share price flying 17% higher today

Motley Fool contributor Tristan Harrison 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 Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form and stormed higher. The benchmark index rose 0.5% to 6,778.8 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 futures pointing lower

The Australian share market looks set to edge lower on Thursday morning following a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 9 points or 0.1% lower this morning. In late trade on Wall Street, the Dow Jones is up 0.55%, the S&P 500 has risen 0.1%, and the Nasdaq is down 1.25%.

Tech shares on watch

It could be a tough day for ASX tech shares such as Xero Limited (ASX: XRO) and Zip Co Ltd (ASX: Z1P) on Thursday after US tech stocks came under pressure again during overnight trade. At the time of writing, the tech-focused Nasdaq index is down 1.25%. This follows declines by a number of tech giants.

Oil prices rebound

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could charge higher today after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 5.5% to US$60.91 a barrel and the Brent crude oil price has risen 5.5% to US$64.19 a barrel. An issue at the Suez Canal which is blocking the key trade route gave oil prices a boost.

Gold price pushes higher

Gold miner Newcrest Mining Ltd (ASX: NCM) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.5% to US$1,733.30 an ounce. The gold price climbed after bond yields continued to soften. In other industry news, the Ghanaian government has told gold miner Resolute Mining Limited (ASX: RSG) that its Bibiani Gold Mine licence has been terminated. As a result, it has been advised to cease all activities and operations at the site.

Brickworks half year result

The Brickworks Limited (ASX: BKW) share price will be one to watch this morning when it releases its half year results. In November the building products company revealed that its Building Products Australia business had made a strong start to FY 2021. However, this was being offset partly by weakness in the North American market.

More reading

• ASX 200 rises, Airtasker soars again, Westpac considers NZ
• How is Australia’s jobs rebound affecting ASX shares?
• How are ASX 200 shares faring in the carbon revolution?
• How are New Zealand-based ASX shares performing ahead of a likely recession?
• Genex (ASX:GNX) share price frozen on hydro project fund raising

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of Xero. 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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A declining birth rate will affect the ASX in many ways, but the most obvious is a potential hit to companies that make products for Australia’s bubs. Especially those companies that cater exclusively for babies. 

According to the Federal Government’s Centre for Population, Australia’s birth rate is projected to average at 1.62 babies per adult female until 2030, making it the lowest birth rate we’ve ever seen. Comparatively, the highest birth rate for Australian women in this century was 3.5 babies in 1961.

As the birthrate needed to sustain the population (assuming no migration or immigration occurs) is 2.1 babies per woman, we may well face a future where there just aren’t as many babies around.

If you’re wondering which companies might want to start considering branching out into different fields, you’ve come to the right place.

Here are 2 Australian companies that cater exclusively for babies

Bubs Australia Ltd (ASX: BUB)

Bubs Australia is a nutritional company for babies and young children. How will its share price fare if the birth rate drops?

Its products include formula, snacks, cereals and a new line of children’s vitamins. Currently, Bubs products are stocked in Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), Chemist Warehouse, Big W, Amazon.com, Inc (NASDAQ: AMZN) and selected Australian pharmacies.

At the close of trade today, the Bubs Australia share price was 51 cents, down 15% year to date. Bubs shares are also down 5.56% over the last 12 months.

Bubs Australia has a market capitalisation of around $312 million, with approximately 612 million shares outstanding.

Baby Bunting Group Ltd (ASX: BBN)

The retail group focused solely on products for babies and toddlers up to 3 years of age. Could the Baby Bunting share price drop alongside the birth rate?

The retailer has 50 stores Australia-wide.

The Baby Bunting share price closed at $5.55, up 0.73% today. Year to date, the retailer’s shares have seen an increase of 14.6%. Its share price is also up an impressive 220.8% year to date.

Baby Bunting has a market capitalisation of $712.20, with approximately 129 million shares outstanding.

More reading

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• Leading brokers name 3 ASX shares to sell today
• 2 small cap ASX shares with huge potential
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• Will the ASX share e-commerce boom last?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended Amazon, Baby Bunting, and BUBS AUST 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 Temple & Webster Group Ltd (ASX: TPW) share price is acting like a rollercoaster right now. Is it the best value e-commerce ASX share to buy currently?

What’s going on in the e-commerce sector?

There are a number of ASX shares that are in e-commerce sector like Kogan.com Ltd (ASX: KGN) and Redbubble Ltd (ASX: RBL) which have successfully accessed the huge e-commerce boom due to COVID-19.

On top of that, there are some physical retail ASX retail shares that have managed to dramatically increase their online sales like Adairs Ltd (ASX: ADH), JB Hi-Fi Limited (ASX: JBH) and Accent Group Ltd (ASX: AX1).

Each business is in a different segment of the market, and each of them have their own positives and weaknesses.

Over the last year, the share prices of retailers that have managed to tap into the e-commerce boom have soared. Just look at the share price of Adairs – it has risen by 540% over the last year, soundly outperforming the recovery of the broad ASX share market.

What has the Temple & Webster share price done recently?

It has been a crazy 12 months for Temple & Webster shares. Over the last week the share price has fallen 10%, over the last two weeks it’s up 14.5%, over the last two months it’s down 27% and over the last year it’s up 448%. How about that for volatility?

The business has certainly grown its operations significantly over the last 12 months, partly due to the impacts of COVID-19 on the business.

In the FY21 half-year result, the company revealed that revenue had gone up 118% year on year to $161.6 million, earnings before interest, tax, depreciation and amortisation (EBITDA) grew 556% to $14.8 million and it generated $12.2 million of net profit after tax.

Active customers grew 102% to 678,000, the trade and commercial division increased 89% year on year and it was cashflow positive during the half.

The growth has continued into the 2021 calendar year, with year on year growth of 118% to 23 February 2021.

Temple & Webster is doing a number of initiatives to ensure it continues growing strongly.

It’s accelerating its investment into ‘digital’ and advertising to outgrow the market, it’s using price and promotions to attract first time customers, it’s investing in its technology, data, private label and delivery, and it’s focused on growing its business to business sales and operational teams.

It wants to become the largest retailer of furniture and homewares in Australia.

How does the valuation stack up?

According to Commsec, the Temple & Webster share price is valued at 35x FY23’s estimated earnings. Let’s compare that forecast to others in the retail space. 

Another business in the homewares space, Adairs, is valued at 11x FY23’s estimated earnings.

E-commerce business Kogan.com, which sells a wide variety of items, is valued at 18x FY23’s estimated earnings.

Temple & Webster may not be the cheapest e-commerce ASX share on earnings multiple terms, but it is certainly delivering a high rate of revenue and profit growth.

More reading

• ASX retail shares beware: Aldi e-commerce is coming
• Why Zip (ASX:Z1P) and this growth share are in the buy zone today
• 3 under-appreciated income stocks yielding 4-9%: Motley Fool CIO Scott Phillips, on ausbiz
• 2 ASX retail shares delivering strong growth
• ASX 200 crash anniversary: 5 of the best performing shares of the last 12 months

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Accent Group, ADAIRS FPO, and Temple & Webster Group 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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Regional Express Holdings Ltd (ASX: REX) is continuing its aggressive push out of the regions and into the cities. The company announced on its website today it would challenge Qantas Airways Limited (ASX: QAN) with a new Sydney to Canberra route starting at $99.

At today’s close of trading, the Regional Express share price was down 3% trading at $1.58. Shares in Qantas, meanwhile, were trading 1.34% lower at $5.14. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.5%. All ASX travel shares are down at present, as pessimism continues to linger over COVID restrictions.

Let’s take a look at the smaller airline’s expansion plans. 

Rex takes a bite of Qantas

Regional Express advised that starting 19 April, it will begin flights between the nation’s capital and the harbourside city. At the moment, Qantas is the only airline that flies directly between the two metro areas.

There will be 7 flights a day initially. If demand is strong, this could increase to 10 flights per day. Rex estimates up to 1 million people flew the route annually, pre-coronavirus.

Rex’s offering of $99 one-way is cheaper than Qantas’ lowest price for the route. The cheapest flight on the national carrier currently is $193 one-way – almost double Rex’s offering.

In today’s release, Rex deputy chair and former politician, John Sharp, had some incendiary words about the company’s competition.

We believe that on the Sydney – Canberra route alone, Rex will be bringing annual savings of between $60–$100 million to commuters when numbers return to pre-COVID levels, such is the level of fare gouging being practised.

Rex’s affordable fares will greatly stimulate more business and leisure traffic between Sydney and the national capital as the industry continues to recover.

Growing its wings

The regional carrier recently completed a $150 million private equity deal to aid its expansion into the cities. The private equity deal came after the release of its half-year results for FY21. The company made a loss of $900,000 for the period.

Regional Express avoided financial catastrophe by drawing government wage subsidies to the tune of $59.4 million. Passenger numbers fell by 71.2% due to the pandemic.

Today’s move comes after Rex entered the lucrative Sydney-Melbourne route. The corridor between Australia’s two largest cities was the third busiest in the world in 2018.

Rex will be looking to make a dent in Qantas’ colossal 74% domestic market share.

Qantas and Regional Express share price snapshots

Both airlines have made gains since the COVID-driven ASX sell-off of just over 1 year ago. The Qantas share price has increased by 57%, while Rex’s is up a massive 229%.

Rex’s share price touched a high of $2.31 in December last year. Meanwhile, Qantas still has some ground to make up since its 2020 peak of $7.12 at the start of January.

Rex has market capitalisation of $179.5 million while Qantas comes in at $9.83 billion.

More reading

• Did Powell just blink first in the Fed’s staring contest with inflation?
• How are ASX 200 shares faring in the carbon revolution?
• Will the Qantas (ASX:QAN) share price soar 20% higher from here?
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 dips, travel shares drop, Pushpay soars

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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The DUG Technology Ltd (ASX: DUG) share price is soaring today, but with no news out from the company, it might be worth taking a look at recent developments in the company.

For some, it might be the first time even hearing of DUG before, so we’ll run cover what the company does at a high level.

At the time of writing, the DUG share price is trading 18% higher to $1.14.

DUG is super smart

Listed in August last year, DUG is a technology company that provides high-performance computing as a service (HPCaaS). In this day and age processing power is required by many industries. Some of the world’s most complex problems are being deciphered not by people in a room, but by supercomputers in specialised facilities.

Originally founded in 2003, the company has expanded internationally. DUG now boasts a global network of 4 supercomputers; playfully named BUBBA, BAZZA, BODHI, and BRUCE. In 2019 the company began broadening its client base outside the resource sector, branching out to radio astronomy, academic research, academic institutions, etc.

Interestingly, DUG’s computer rooms are some of the ‘greenest’ in the world. Instead of using the commonly used air-conditioning method to cool its supercomputers, DUG utilises a specialised dielectric-fluid cooling solution.

Recent performance

The company recently reported its first-half results in February. According to the report, DUG has increased its focus on software solutions to include its high-performance service offering in its ‘McCloud’ platform. McCloud is the business’s customer-focused processing on-demand platform. As a result, HPCaaS revenue experienced an 86% uplift half-on-half.

While HPCaaS revenue increased, other segments experienced a reduction — leading to an overall revenue fall of 9.8% year-over-year. DUG blamed COVID-19 for delaying projects in its services division.

Furthermore, DUG’s bottom-line losses ballooned to $4.4 million, compared to a $2.5 million loss the prior year. However, the report indicated an improved outlook for the company as it continues to expand its offering to other industries.

DUG share price recap

Since the company listed in August last year, it has been a disappointing ride. Even accounting for today’s strong rally, the DUG share price has slumped 24% from its ASX debut. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has returned more than 10% over the same timeframe.

Based on DUG’s current share price, the company now has a market capitalisation of $96 million.

More reading

• 2 blue chip ASX 200 shares that could be strong buys
• What’s up with the Mesoblast (ASX:MSB) share price?
• ASX 200 rises, Airtasker soars again, Westpac considers NZ
• How is Australia’s jobs rebound affecting ASX shares?
• Did Powell just blink first in the Fed’s staring contest with inflation?

Motley Fool contributor Mitchell Lawler 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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If you’re aiming to build a balanced portfolio, having a few blue chip ASX shares in there could be a smart move.

But which blue chip ASX 200 shares should you buy? Two that are highly rated are listed below:

CSL Limited (ASX: CSL)

The first blue chip ASX 200 share to look at is biotechnology giant CSL.

CSL has a focus on rare and serious diseases through its CSL Behring business and influenza vaccines through its Seqirus business.

CSL Behring has a wide range of innovative therapies. These are used to treat immunodeficiencies, bleeding disorders, hereditary angioedema, Alpha 1 antitrypsin deficiency, and neurological disorders. Whereas Seqirus has a broad range of flu products meeting the needs of different populations around the world.

While COVID-19 has impacted its plasma collections and could weigh on its margins in the near term, the long term looks extremely positive. Especially given its burgeoning R&D pipeline and the increasing demand for plasma-based products.

This morning, analysts at Credit Suisse upgraded CSL’s shares to an outperform rating with a $315.00 price target.

Ramsay Health Care Limited (ASX: RHC)

Another ASX 200 blue chip share to look at is Ramsay Health Care. It is a leading private healthcare company with operations across the world.

While the pandemic hit Ramsay hard and led to a significant drop in elective surgeries, trading conditions have improved greatly in recent months. As a result, Ramsay looks well-placed to benefit from a backlog in surgeries in the near term and increased demand for healthcare services over the long term. 

Macquarie is positive on the company. Earlier this week its analysts retained their outperform rating and $75.00 price target on Ramsay’s shares.

The broker has been pleased with recent activity trends and feels the company is well-positioned for growth over the long term.

More reading

• Top brokers name 3 ASX shares to buy today
• Down 18%: Is the CSL (ASX:CSL) share price a buy?
• 8 ASX 200 shares rated as ‘outperform’ by brokers
• Is now the time to invest into the CSL (ASX:CSL) share price?
• How to counter the ASX 200’s Achilles heel

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 CSL Ltd. The Motley Fool Australia has recommended Ramsay Health Care 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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Mesoblast Limited (ASX: MSB) shares were dropping again today and, with no news from the company, the question is why? By the market’s close, the Mesoblast share price was trading at $2.39, down 3.24% from yesterday’s close. This compares to the S&P/ASX 200 Index (ASX: XJO), which was up 0.5% today.

The stem cell focused biotech company is listed on both the ASX and Nasdaq and its ASX share price has fallen by 51.32% over the last 6 months.

Let’s look further into what’s been happening for Mesoblast.

Recent share price fluctuations

The Mesoblast share price had an eventful 2020, which included steep falls in December after trials for some of the company’s new products delivered disappointing results.

On 15 December, the company announced that while its phase 3 trial of REVASCOR for advanced chronic heart failure showed good results, it did not achieve the objectives of the trial. This less than pleasing news saw Mesoblast shares plummet by more than 45% in one day.

Then, only days later, Mesoblast announced its randomised controlled trial of remestemcel-L in ventilator-dependent patients with moderate to severe acute respiratory distress syndrome due to COVID-19 had also not achieved its objectives. Remestemcel-L had not proven to be as effective in preventing death as it was predicted to be.

The company stated the failed remestemcel-L trial was due to improvements in other COVID-19 treatments having been made in the time between gathering the initial pilot data and the execution of the trial. Though, this reasoning didn’t save the company’s share price which fell another 10% in the days following the news.

Compared to 2020, Mesoblast shares appeared to have been pushing through 2021 comparatively stably and even slowly gaining. That was, until the beginning of March.

On 2 March, Mesoblast exited a trading halt by announcing a US$110 million private placement led by a strategic investor group. By 9 March, the Mesoblast share price had plunged nearly 6%.

The company’s shares have since increased slightly but are still 2.85% lower than their final day of trading in February.

Mesoblast is a rare dual listed company

A company gains several benefits from being listed on two separate global exchanges. These include access to greater capital, additional liquidity and more diverse trading hours.

Because Mesoblast’s shares are dual-listed on the ASX and Nasdaq, the company can theoretically action more capital raises with fewer negative consequences, therefore having greater access to additional cash when needed.

Up and coming products

Mesoblast currently has three products at phase 3 trial stage.

They are:

• Remestemcel-L for the treatment of steroid-refractory acute graft versus host disease and for acute respiratory distress syndrome as a result of COVID-19.
• REVASCOR for advanced chronic heart failure.
• MPC-06-ID for lower back pain due to degenerative disc disease.

Mesoblast share price snapshot

Despite a number of significant hits to the Mesoblast share price, it is still trading above its 2021 opening price, currently by around 6%.

The company’s shares are also up an impressive 101% over the last 12 months. So, investors who got in before Mesoblast’s rollercoaster will still be happy with their investment.

Mesoblast has a market capitalisation of $1.6 billion, with approximately 648 million shares outstanding.

More reading

• Piedmont Lithium (ASX:PLL) successfully completes US public offering
• What’s weighing on the Mesoblast (ASX:MSB) share price lately?
• These are the 10 most shorted shares on the ASX
• ASX 200 up 0.3%: Mesoblast raises US$110 million, tech shares rebound
• Here’s why the Mesoblast (ASX:MSB) share price is tumbling lower today

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 S&P/ASX 200 Index (ASX: XJO) ended the day higher by

It was another breathtaking day for the Airtasker Ltd (ASX: ART) share price as it jumped another 66% today.

Here are some of the other highlights on the ASX:

Westpac Banking Corp (ASX: WBC)

Westpac announced today that it has commissioned two independent reports about its risk governance and liquidity risk management.

The first report will assess Westpac New Zealand’s governance process and practices applied by the board and executive management.

The other report relates to the effectiveness of the actions that Westpac New Zealand has taken to improve the management of liquidity risk and the associated risk culture, following previously identified breaches of the Reserve Bank of New Zealand’s (RBNZ) liquidity policy and potential non-compliance identified through the RBNZ’s liquidity thematic review.

RBNZ will require Westpac New Zealand to hold additional liquid assets until the RBNZ is satisfied that the previously required remediation work has been effective. The RBNZ said that it is “confident that Westpac New Zealand’s current liquidity and funding positions are sound, and that the bank is well capitalised.”

Westpac New Zealand has acknowledged the importance of liquidity and risk governance obligations and will support the independent reviewers to provide the necessary reports to the RBNZ.

The New Zealand bank said that it has taken a number of steps to improve risk governance but recognises more work is required, and supports the additional oversight that the independent reports will provide.

Separately, Westpac then announced that it is considering whether a demerger of its New Zealand business would be in the best interests of shareholders. It’s only in the very early stages of this assessment and no decisions have been made.

The ASX 200 bank said that its New Zealand division is an important part of the business and has been for over 160 years. It said the business continues to perform well with a strong position in retail and commercial banking.

However, the changing capital requirements in New Zealand and the RBNZ requirement to structurally separate the New Zealand business from Australian operations means that the bank needs to assess the best structure for its New Zealand business.

The Westpac share price dropped around 1% today.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price went up more than 2% in reaction to its FY21 half-year result.

Premier said that its retail division delivered 7.2% growth of sales to $784.6 million, with like for like sales going up 18.2%.

It achieved online sales growth of 61.3% to $156.7 million, which contributed 20% of total online sales.

The Premier retail earnings before interest and tax (EBIT) rose 88.5% to $237.8 million with the EBIT margin rising 1,308 basis points. Net profit after tax (NPAT) grew 88.9% to $188.2 million.

The ASX 200 business was also able to reach agreements with landlords that reduced the rent to 12.7% of sales, a reduction of 318 basis points year on year.

The board decided to maintain the interim dividend at 34 cents per share.

In the first seven weeks of the second half of FY21, global like for like sales were up 32.1% and the gross profit margin increased by 379 basis points year on year.

Computershare Ltd (ASX: CPU)

Computershare announced a substantial acquisition today. It’s buying the assets of Wells Fargo Corporate Trust Services (CTS), a leading US based provider of trust and agency services to government and corporate clients.

The ASX 200 company is doing a capital raising of $835 million to fund the US$750 million acquisition – the rest will be paid for with debt.

Computershare said that CTS is currently appointed to administer corporate trust services to around 26,000 mandates across a range of securities and bond issuances.

The ASX business said that the acquisition is a highly strategic fit with its existing Canadian and US corporate trust operations and its growth strategy. The combination is expected to accelerate Computershare’s position in the US corporate trust market to a top four position.

Client deposit balances and money market fund balances of over US$60 billion will also transfer across as part of the acquisition.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments 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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