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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record its second successive day of gains. The benchmark index is currently up 0.4% to 6,779.8 points.

Here’s what has been happening on the market today:

Bank shares lower

The big four banks are out of favour today and trading lower. While all four banks are in the red and acting as a drag on the ASX 200, the worst performer has been the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price. Its shares are down 0.5% at the time of writing on no news.

Xero shares upgraded

The Xero Limited (ASX: XRO) share price is pushing higher on Tuesday thanks to a broker note out of Credit Suisse. According to the note, the broker has upgraded the business and accounting platform provider’s shares to an outperform rating with an improved price target of $136.00. Its analysts were pleased with its Planday acquisition. In addition to this, its research indicates that Xero has continued to deliver strong revenue growth in recent months.

Healthcare shares rise

The healthcare sector is outperforming on Tuesday and helping to drive the ASX 200 higher. Solid gains are being recorded by the likes of Healius Ltd (ASX: HLS), ResMed Inc (ASX: RMD), and Sonic Healthcare Limited (ASX: SHL). This has led to the S&P/ASX 200 Health Care index rising by over 0.85% so far today.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the AGL Energy Limited (ASX: AGL) share price with a 5% gain. This is despite there being no news out of the energy company. The worst performer has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with a 3.5% decline. A number of travel shares are tumbling lower today.

More reading

• ASX 200 crash anniversary: The most important lesson we’ve learned
• Which ASX 200 shares haven’t recovered from the COVID-19 crash?
• ASX 200 crash anniversary: 5 of the best performing shares of the last 12 months
• Where to invest your BHP (ASX:BHP) dividends
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, ResMed Inc., and 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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Well, it’s officially been one year since the bottom of the coronavirus-induced market crash that defined investing in 2020. This time last year, the markets were in freefall over fears of a global economic wipeout. It was a day of panic, to say the least. We saw shares drop to unthinkable lows. Of course, that was before the US Federal Reserve came to the rescue and promised ‘whatever it took’ to get the financial markets moving again. That came in the form of massive, unprecedented quantitative easing (QE) programs which, surprise surprise, worked to allay investors’ fears. The S&P/ASX 200 Index (ASX: XJO) is today (at the time of writing) up 48.97% over the past 12 months.

So in the 12 months since, what have we learned? That a market crash is usually never the time to sell an ASX share, that’s what.

Lessons from an ASX 200 crash

This morning, we looked at some of the best performing ASX shares over the past year. All of them found dramatically low bottoms on 23 March 2020. And all of them have recovered and gone on to reach new all-time highs.

Fear is a powerful and insidious emotion we investors have to constantly battle. At no time was this more evident than it was a year ago. I’m sure there are still investors out there who sold everything in mid-March 2020 and are still waiting for the second dip to come along so they can rectify their mistake.

But selling your shares just because others are panic selling almost never works out well. When you buy a slice of a business, you should be buying for the long-term. Part of every investment decision should be assessing your company’s ability to weather a black swan event. Now no one could have foreseen a global pandemic – a bonafide black swan if there ever was one. But the best companies fix their roofs when the sun is shining. That was evident in March of last year.

The bottom line is that most investors who sold out of their shares in March had a terrible 2020. Most of those who held on, or as Warren Buffett would say, were greedy when others were fearful, did magnificently.

At the end of the day, the ASX share market has been through a lot. Two world wars, the great depression, a couple of other wars, the dot-com crash, the global financial crisis, and now a global pandemic. It has always pulled through and gone on to make new all-time highs. And ASX shares go up far more than they go down. This lesson isn’t new, but on this anniversary, it is worth keeping in mind.

More reading

• ASX 200 crash anniversary: 5 of the best performing shares of the last 12 months
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 climbs, Crown soars, Mineral Resources drops
• Top broker issues buy alert on Santos (ASX:STO) and these ASX energy shares
• ASX 200 up 0.35%: Crowns surges, ANZ & CBA settle class actions

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 Lucapa Diamond Co Ltd (ASX: LOM) share price is on the rise this morning. In early morning trade, shares were exchanging hands for 66 cents, up 1.5%. At the time of writings, shares have retreated slightly, trading at 65 cents, down 1.5%.

The ASX diamond producer has interests in the Lulo diamond mine in Angola and the Mothae diamond mine in Lesotho. This morning, Lucapa announced a resource upgrade for its Lulo mine.

What did Lucapa Diamond report on its Lulo diamond resources?

Lucapa’s share price is moving higher in morning trade. This comes after the company reported an increase in the JORC Classified Inferred Alluvial Diamond Resource at its Lulo mine.

Lucapa’s partners in Sociedade Mineira Do Lulo (SML) are Empresa Nacional de Diamantes E.P. and Rosas & Petalas.

A new estimate has been conducted by external consultants Z Star Mineral Resource Consultants (Pty) Ltd. According to the estimate, there is a 35% increase in the Lulo diamond resource carats. Additionally, in-situ alluvial resource carats increased to approximately 136,000, up from just over the 100,000-carat resource estimate on 31 December 2019.

The company reported a modelled average diamond value of US$1,440 (AU$1,870) per carat.

The increased resource estimate comes following the exploration program. This program included some 4,800 auger drill holes and a 770-hole pitting program. The increase comes after accounting for mining depletion of approximately 23,600 carats during 2020. The new resource estimate works out to at least 5 years throughput at the current mining rates.

Management commentary

Commenting on the resource upgrade, Lucapa’s managing director Stephen Wetherall said:

The increases in the Lulo Diamond Resource over the last few years is a direct result of disciplined investment in the alluvial exploration and delineation programs by SML. The 35% increase in carats to ~136,000 carats is a new record for carats in the Lulo Diamond Resource notwithstanding six years of mining depletion. This year’s update too highlights the valuable contribution of the newly delineated leziria areas which have provided a stream of top-quality recoveries.

Lucapa said that, to date, “112,000 carats of diamonds have been recovered and sold at Lulo for a total US$200 million at an average price of US$1,790/ carat”. In addition, the company also reported that following a decline during the COVID-19 outbreak, diamond prices have returned to pre-pandemic levels.

Share price snapshot

It’s been a bumpy 12 months for Lucapa Diamond shares, currently down 16% since this time last year. By comparison, the All Ordinaries Index (ASX: XAO) is up 54% in that same time period.

Year-to-date the Lucapa Diamond share price is up 12%.

More reading

• Is the ASX the best place on earth to invest in 2021?
• Airtasker (ASX:ART) share price rockets 78% after IPO
• Challenger Exploration (ASX:CEL) delivers exceptional gold results
• Which ASX 200 shares haven’t recovered from the COVID-19 crash?
• Is the Crown (ASX:CWN) takeover offer good value for shareholders?

Motley Fool contributor Bernd Struben 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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Australians, let us rejoice, as the ASX may be the best global marketplace for investors in 2021, according to a new report. Due to Australia’s response to COVID-19 and history of strong economic growth, the Why Australia benchmark report found our economy to be surprisingly durable.

The report states that because Australia decreased the spread of COVID-19 and implemented strong stimulus measures, its economy has fared second best globally.

As the economy and GDP impacts, and is impacted by, the share market, a strong GDP generally means good share market growth. Thus, when Australia’s GDP goes up, the ASX generally shows stronger returns.

Let’s take a look at what might make Australia an investing destination.

COVID-19 response

The report found that Australia’s geographical isolation and internal border closures throughout 2020 meant there were relatively few fatalities from COVID-19. Further, the Australian Government provided economic packages, worth 18% of GDP. These measures meant that COVID-19’s impact on GDP was comparatively small. While Australia’s GDP did drop as a result of the pandemic, it dropped considerably less than in most other economies. 

In fact, it was reported that only China’s and Korea’s economies were impacted less than Australia’s and Bloomberg recently ranked Australia as the second most resilient economy during COVID times, bested only by New Zealand.

While Sweden and Finland displayed close to Australia’s 2020 economic growth, both countries experienced more deaths from COVID-19.

Government debt levels

Compared to many of the world’s countries, Australia’s level of debt is low. When the pandemic began, Australia had incredibly low levels of debt. This proved fortuitous, as most economies, including ours, had to increase debt levels as GDP dropped.  

The International Monetary Fund’s most recent Fiscal Monetary Report predicted Australia’s debt will grow to 74.8% of its GDP in 2021. While that is a steep jump from the 47.4% it was in 2019, it’s much less than most of Europe and North America are estimated to hold. In fact, of those that make up the G20, Australia’s predicted debt is the third smallest, behind Korea and Germany.

2021 on the ASX

Our beloved ASX is the world’s ninth largest stock market by market capitalisation of freely floating stocks. Australia also has the eighth largest pool of managed funds.

Not only is the ASX among the top ten largest global marketplaces, it’s also arguably a diverse one. A huge number of industries and businesses make up its trade.

Most ASX investors are aware that diversification is key to stability. International trade is no different. Australia has tonnes of diversity, with strong mining, agriculture, tourism and education sectors that we share with the world. The Why Australia report mentioned our energy sector as well, particularly as renewable energy continues to grow.

In the day and age of Bitcoin (CRYPTO: BTC) and the Nasdaq, it’s easy to lose sight of what makes a good investment. But ASX investors haven’t. Investors looking to keep their finger on a proven, strong and future-focused investment market may find the good old ASX to be the place to do so.

More reading

• Airtasker (ASX:ART) share price rockets 78% after IPO
• Challenger Exploration (ASX:CEL) delivers exceptional gold results
• Which ASX 200 shares haven’t recovered from the COVID-19 crash?
• Is the Crown (ASX:CWN) takeover offer good value for shareholders?
• Why the MGC Pharmaceuticals (ASX:MXC) share price is jumping 8%

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. 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 Airtasker Limited (ASX: ART) share price has hit the ASX boards at last on Tuesday morning following the successful completion of its initial public offering (IPO).

And what a start to life as a listing company it has had! At the time of writing, the shares of Australia’s leading marketplace for local services are trading at $1.16.

This means the Airtasker share price is up 78% from its listing price of 65 cents.

What is Airtasker?

Airtasker operates in the online labour marketplace industry for local services.

Its platform allows customers to easily search for relevant independent workers and provides independent workers with access to a wide base of potential customers. Its main focus is the local services segment of the labour services market. This includes everyday tasks such as handyman jobs, domestic cleaning, and business administration.

According to its prospectus, the total addressable market for local services in Australia was estimated to be $52 billion in 2019.

However, while Australia is its main market at present, the company operates in several other international markets. This includes Ireland, New Zealand, Singapore, the United Kingdom, and the United States.

Management notes that the aggregated total addressable market was estimated to be $591 billion in 2019.

The Airtasker IPO

Airtasker raised a total of $86.3 million through the issue of 23.1 million shares and the sale and transfer of 105,6 million shares at an issue price of $0.65 per share.

From these funds, $15 million will be received by Airtasker, which will be used for marketing, product development, and working capital.

The remaining $68.7 million will provide existing shareholders with an opportunity to realise all or part of their investment in Airtasker.

As a result of the above, Airtasker hits the ASX boards with 420.6 million shares outstanding.

Based on this and the latest Airtasker share price, this gives it a market capitalisation of almost $500 million.

Management comments

Airtasker’s CEO, Tim Fung, was very pleased with the success of the IPO.

He said: “We’ve been absolutely delighted by the response Airtasker received from institutional and retail investors in our IPO which was more than 5X oversubscribed. But an even more important signal is the demand we received from our Tasker community and our staff, who subscribed for shares more than 10X our initial expectations.”

“We have an incredible foundation to build from and we’re excited to be taking our new shareholders on the exciting journey to fulfill Airtasker’s mission: to empower people to realise the full value of their skills.”

Judging by the Airtasker share price performance today, investors appear just as positive as Mr Fung.

More reading

• Airtasker’s ASX debut happens tomorrow, after 24-hour delay
• Airtasker IPO: staff demand 10 times the shares offered
• One person earned $250,000 on Airtasker last year. Now it’s listing

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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Challenger Exploration Ltd (ASX: CEL) has announced that it has hit outstanding sampling results at its flagship Hualilan Gold Project in Argentina. A positive stream of high-grade mineralisation news has pushed the Challenger Exploration share price up almost 50% this year. Although the company is in its early exploration days, the positive news continues to add to its overall growth strategy. With this in mind, Challenger aims to become a globally significant gold producer.

Challenger Exploration share price up 5% on sampling results 

Challenger Exploration revealed its first results from its Main Manto rock saw channel within the Hualilan project. The results include the following: 

• 71.0m at 10.8 g/t AuEq2 – 9.2 g/t Au, 22.5 g/t Ag, 3.0% Zn in combined Zone 1 and Zone 2

Commenting on the results, Challenger Explorer Managing Director, Mr Kris Knauer said: 

These near surface results are exceptional and continue to reinforce our belief we have a significant gold system at our flagship Hualilan Gold Project in Argentina. We can see that mineralisation is wider than expected near surface and has A strong correlation with high-grade drill hole results down dip and Historical sampling based on the presence of visual sulphides missed broader near surface zones. This is a further important step in delivering on our strategy to become a globally significant gold producer initially targeting high grade shallow mineralisation.

Company overview 

Challenger Exploration possesses two gold projects, the Hualilan Gold project in Argentina and El Guayabo/Colorado V Project in Ecuador. 

The Hualilan project was previously locked up in a dispute 15 years prior to Challenger’s ownership. The company believes there is a historical resource of 627,000 ounces of gold at 13.7 g/t. Albeit a non-JORC compliance resource. Continued sampling and drilling are expected to extend the project’s existing mineralisation. Additionally, it will support multiple resource upgrades in the near term. 

Challenger Exploration has undertaken extensive exploration over the past 12 months. The intention behind the exploration is to generate targets for drilling and land acquisition at El Guayabo. The project is a step behind the Hualilan project with ongoing channel sampling and assaying. The company is looking to finalise its targets for the upcoming drilling program. 

More reading

• Which ASX 200 shares haven’t recovered from the COVID-19 crash?
• Is the Crown (ASX:CWN) takeover offer good value for shareholders?
• Why the MGC Pharmaceuticals (ASX:MXC) share price is jumping 8%
• Here’s why the Payright (ASX:PYR) share price is soaring 9% today
• Why the Vulcan Energy (ASX:VUL) share price is charging 9% higher

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a few S&P/ASX 200 Index (ASX: XJO) shares that are actually materially lower than they were a year ago at the bottom of the crash.

Some of them have seen their ups and downs, but a year on from the bottom of the COVID-19 crash they are still down quite substantially.

Let’s look at the three that are down the most:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down around 45% over the past year. Despite initially having a strong performance because of the elevated levels of consumer buying and pantry stocking, things have gone wrong for the infant formula business as demand dropped off.

A2 Milk has explained a number of times that the drop in performance is due to the daigou and cross-border e-commerce (CBEC) channels being significantly impacted due to disruption resulting primarily from COVID-19-related issues. Issues include pantry de-stocking, reduced tourism from China and international student numbers because of travel restrictions. Subdued online pricing also isn’t helping.

The ASX 200 share is trying to re-activate the daigou channel.

FY21 half-year revenue was down 16% and it’s now expecting total revenue to be in the order of NZ$1.4 billion. This assumes a strong recovery in the fourth quarter.

AGL Energy Limited (ASX: AGL)

The AGL share price has dropped by around 36% over the past year.

AGL has been suffering from a “sharp decline” in wholesale prices for electricity and large-scale renewable certificates, lower gross margins in wholesale gas, higher costs associated with the COVID-19 pandemic and increased depreciation expenses after recent investments. There was also a $25 million hit relating to the outage of unit 3 of the Liddell Power Station.

All of the above saw the ASX 200 share report a statutory loss of $2.29 billion, which included $2.69 billion of onerous contract provision and impairment charges.

AGL is expecting to report underlying profit after tax of between $500 million and $580 million in FY21. It’s looking for cost reductions, amounting to around $150 million in FY22. It is also trying to deliver a $100 million reduction in sustaining capital expenditure by FY23.

TPG Telecom Ltd (ASX: TPG)

The TPG share price is down by 23% over the last year.

TPG is working through the merger between Vodafone Hutchison Australia and the old TPG. It is still suffering from the impacts of the NBN which is harming margins. There’s also the impact of COVID-19, especially global travel restrictions, ongoing mobile competition as well as regulatory challenges.

The telco ASX 200 share said that, on a pro forma basis, which calculates figures to simulate what the result would have been if the merger had been effective throughout 2020 and 2019, it showed revenue decreased by 6% to $5.52 billion and EBITDA decreased by 10% to $1.79 billion.

However, the company said that it has confidence in a recovery from COVID as the 5G rollout ramps up in major cities and it’s also testing fixed wireless services.

More reading

• Why the A2 Milk (ASX:A2M) share price is under pressure in 2021
• ASX 200 dips, Sydney Airport falls, AGL rises
• ASX 200 down 0.3%: Afterpay & Zip lower, AGL signs Portland Smelter deal
• Why AGL, Clover, QBE, & Volpara shares are pushing higher today
• Why the AGL (ASX:AGL) share price is avoiding the market selloff

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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 Crown Resorts Ltd (ASX: CWN) share price was an exceptionally strong performer on Monday.

The casino and resorts operator’s shares rocketed 21% higher to $11.97.

Why did the Crown share price rocket higher?

Investors were scrambling to buy Crown shares on Monday after it confirmed the receipt of a takeover offer from US investment giant Blackstone.

According to the announcement, Crown has received an unsolicited, non-binding, and indicative proposal of $11.85 cash per share from Blackstone. This indicative price will reduce by the value of any dividends or distributions Crown declares or pays.

As things stand, the Crown board is assessing the offer and has advised shareholders not to take any action. It also warned them that there’s no certainty that the proposal will result in a transaction.

What are analysts saying about the Crown takeover offer?

While it has not given its verdict on whether it believes a deal will be reached, Goldman Sachs has made a few comments about the Crown takeover offer.

It commented: “We note there remains heightened regulatory overhang on CWN […] and there are multiple conditions around this offer, including approval still from Blackstone’s investment committees, as well as regulatory conditions approving Blackstone as a ‘suitable person’ to hold CWN’s licenses and other gaming-related approvals. We also note the Victorian government’s inquiry into Crown is expected to commence this week (Wednesday).”

Is the offer good value for shareholders?

Goldman Sachs appears undecided on whether the Crown takeover offer represents good value.

It notes that offer isn’t at a meaningful premium to the average multiples it has traded at previously. However, it also concedes that Crown’s earnings composition has changed in recent years.

It explained: “The proposed A$11.85 per share offer equates to 12.9x EV/EBITDA on our FY22E EBITDA (including ~A$750 mn of debt), or on more normalised earnings of 11.6/11.1x FY19A/FY23E, respectively. For context, CWN’s long run historical 12-mo forward trading average has been ~12x, whilst its 3/5 year averages have been ~11x. However, we note CWN’s change in earnings composition over the years, noting that volatile, lower-multiple VIP revenues, as a percentage of group amounted to close to ~30% back in FY15/16, falling to ~20% by FY19, and we expect this to represent only ~10% of group revenues on our FY22 estimates.”

All eyes will be on the Crown board in the coming days or weeks when it reveals whether it feels it is good value or not.

More reading

• ASX 200 climbs, Crown soars, Mineral Resources drops
• Why AnteoTech, Crown, Dotz Nano, & Galan Lithium are zooming higher
• ASX 200 up 0.35%: Crowns surges, ANZ & CBA settle class actions
• Crown (ASX:CWN) share price shoots up 18% after Blackstone takeover bid
• Crown (ASX:CWN) share price on watch after receiving takeover approach

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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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MGC Pharmaceuticals (ASX: MXC) shares are on the rise today after the company advised two ethics committees have passed its product for phase III clinical trials on COVID-19 patients. At the time of writing, the MGC Pharmaceuticals share price has surged 8% to 8.1 cents.

The pharmaceutical company’s CimatrA is designed to target infections with inflammatory complications and has been passed for trials at two separate hospitals.

Let’s look take a closer look at the company’s news.

Phase III clinical trials

The MGC Pharmaceuticals share price is gaining ground today after the company stated its CimetrA™ product has been approved by two ethics committees. The trials will evaluate the drug’s efficacy to treat hospitalised patients diagnosed with moderate COVID-19. It will also provide further data on the use of CimetrA as an investigational medicinal product (IMP).

The trials will take place in Israel, at the Rambam Health Care Campus and Nazareth Hospital EMMS. They are expected to begin next month and be completed by September. Full results are expected to be available in October 2021.

CimetrA has had a name change due to the trial. It was formerly known as ArtemiC™, a name which will live on as a food supplement.

The company states that CimetrA encapsulates technology that delivers active ingredients more effectively in higher concentrations, improving the bioavailability of natural active ingredients.

Commentary from management

Co-founder and managing director of MGC Pharmaceuticals Roby Zomer commented on the ethics committee’s approval of CimatrA’s stage III trial:

This is a very significant milestone for the Company being the first Phase III clinical trial of CimetrA™. ArtemiC™ has already proven to be a very successful product for the Company, and we look forward to replicating this with CimetrA as an IMP and improve outcomes for COVID-19 patients.

MGC Pharmaceuticals share price snapshot

The MGC Pharmaceuticals share price is having a fantastic year. Currently, the company’s shares are up by 350% year to date.

MGC Pharmaceuticals has a market capitalisation of around $170 million, with approximately 2.2 billion shares outstanding.

More reading

• Up 310% the MGC Pharma (ASX:MXC) share price is gaining again 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 Payright Ltd (ASX: PYR) share price is up this morning after providing an update on its key growth initiatives. At the market open this morning, shares in the buy-now, pay-later (BNPL) provider are trading at 73.5 cents.

What did Payright announce?

The Payright share price is on the move today after revealing three important announcements.

According to this morning’s release, the first update Payright advised was the launch of its Bill Smoothing payment option. Bill Smoothing is a direct-to-customer service. The service allows consumers to spread their household bills across a three-month period up to the value of $1,000. This includes utilities, bills, council rates, vehicle registration, car & home insurance premiums, rental payments, and school fees, among others.

The pilot program recorded strong success. Consequently, the options are being offered to all existing Payright customers. However, the company is planning on rolling out the service to new customers in the near future.

Additionally, Payright stated that the Bill Smoothing payment option adds another dimension to its value-added services. The company is seeking to capture the Australian and New Zealand market through its expanded range of products.

Payright co-founder and joint-CEO Piers Redward commented:

With approximately 8.8 million residential gas and electricity customers in Australia, and a total market for electricity bill payments in excess of $9 billion per year, Payright Bill Smoothing offers customers the ability to manage the rising cost of living through an easy and affordable payment plan for their household bills.

Merchant growth

In addition to the new product offering, Payright highlighted that its merchant portfolio continues to grow. The latest inclusions are leading Australian home improvement retailers, Australian Outdoor Living, Stratco, and Into Blinds as well as New Zealand’s national electrical retailer, Appliance Plus.

Management noted that Payright’s merchant portfolio spans over the retail, home improvement, health & beauty, photography, education, and the automotive industry.

New warehouse facility

In a bid to support future operations, Payright has engaged with Gresham Partners. This partnership has allowed Payright to secure a $100 million wholesale warehouse facility. This follows a recent review of the company’s existing funding program.

Management explained that once a new warehouse funding is set up, the company will accelerate new growth programs.

Payright’s other co-founder & joint-CEO, Myles Redward said:

Following Payright’s successful IPO and the recent extension of our existing loan notes program, we are excited to have secured Gresham’s services to assist with the proposed transition to a bank warehouse facility. The combined funding mix will provide us with an enhanced capability to aggressively accelerate growth through merchant and customer acquisition initiatives such as Bill Smoothing, along with a number of other new products scheduled for deployment in the coming months.

Payright share price snapshot

The Payright share price has lost around 35% over the past 12 months. Most of the falls coming from year-to-date. The company’s shares reached a high of $1.22 in the middle of last month.

Based on the current share price, Payright has a market capitalisation of roughly $40 million, with 59 million shares outstanding.

More reading

• The Payright (ASX: PYR) share price tumbles after maiden results
• What on earth happened with the Payright (ASX:PYR) share price 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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