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It’s only been a year (give or take) since our last S&P/ASX 200 Index (ASX: XJO) market crash. So I’d wager not too many investors are expecting another one anytime soon. After all, why should they? The economy is recovering nicely and interest rates are at record lows. We also don’t normally have a market crash more frequently than every 4-5 years. Before March 2020, it was a long and happy 11-12 years since the global financial crisis, after all.

But one eminent commentator is warning investors that all might not be as rosy as it seems. According to reporting in The Sydney Morning Herald (SMH) this week, Peter Costello sounds alarm bells. Mr Costello is Australia’s longest-serving Treasurer (under the Howard government) and more recently is chair of the Future Fund – the ~$218 billion sovereign wealth fund of Australia.

According to the report, Mr Costello is concerned about the current monetary policy settings. Specifically, the near-zero interest rate of 0.1% that the Reserve Bank of Australia (RBA) maintains. He even warns that these extremely low rates could prove the “catalyst” for the next financial crisis if no “exit strategy” is developed:

I understand what’s going on, that we’re trying to reassure everybody that monetary policy and fiscal policy will be supportive for as long as it is needed. But I think the critical thing at the moment for central banks and governments is to think of the exit strategy… Because if we don’t have an exit strategy, we will be building up the next financial crisis, and you know what the next financial crisis will be? It will be asset bubbles.

Rates and bubbles

Earlier in the week, we reported how RBA governor Dr Philip Lowe has effectively shot down movements in the bond market pricing in interest rate hikes as early as next year. Dr Lowe and the RBA have previously indicated that rates will stay at their current level until 2024. This week, Dr Lowe stated that that is still his expectation. He justified this by saying that wage growth and inflation are expected to be subdued for years.

But Mr Costello seems to disagree, stating that “these rates are emergency rates. They are for emergencies”.

The Australian housing market’s performance appears to be feeding into Mr Costello’s argument this week as well. Today, the Australian Financial Review (AFR) reports that Australian house prices are now at new record highs. A recovering economy, the ongoing rollout of coronavirus vaccines and, yes, record low interest rates are estimated to be behind this move.

If house prices continue to rise even higher, it won’t be easy to discount Mr Costello’s prediction of asset price bubbles.

More reading

• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 drops, Zip down, Afterpay soars
• Here are some of the best performing ASX tech shares today

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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Yesterday, Afterpay Ltd (ASX: APT) CEO Anthony Eisen discussed the need for a tech hub in Australia, as the company’s share price bounced back from the recent tech sell-off. The topic was a part of a broader conversation on ‘supercharging Australia’s digital future’ at the AFR’s Business Summit.

The billionaire co-founder of the buy now, pay later (BNPL) behemoth stressed Australia’s need for an environment conducive to tech success.

Afterpay is proof it can be done

Australia really is a beautiful place, but both Anthony Eisen and Xero Ltd (ASX: XRO)’s CEO Steve Amos think it could so much more in terms of technology.

In the past, some have argued that Australia lacks the talent to make the investment worthwhile. However, Eisen strongly disagrees with that notion, stating “What Australia lacks is not the talent, just the experience. When you are creating global platforms, getting the experience level in the country is a real key enabler.”

Eisen pointed to examples such as Silicon Valley and explained that these are not simply geographic destinations for tech success, rather they are mindsets.

Afterpay’s success was used as an example by Eisen to demonstrate that tech success at a global scale can be achieved right here in Australia. The co-founder added that government and industry support is needed for it to become a consistent occurrence.

Despite massive fluctuations in the Afterpay share price, the company has expanded throughout the world in just a matter of years. The progress likely wouldn’t have been possible if Australian regulators and/or the government blocked its rollout locally.

Could it already be in the works?

Encouragingly, in June last year plans were announced to develop an ambitious 40 storey tech-hub tower in Sydney. The development should commence by June this year. It has attracted the backing of Australian-founded Atlassian Corporation PLC (NASDAQ: TEAM). However, the building isn’t expected to be completed until 2025.

The desire for a local tech presence is not driven solely by egoism either. After decades of propagating globalism, many countries are beginning to shift towards a more ‘in-house’ approach. A move that is largely due to security concerns.

As reported by The Australian, Aussie tech hub instigator Alex Scandurra is leading the charge through his company Stone & Chalk. Recently, the not-for-profit fintech hub operator merged with the Australian Cyber Security Growth Network. Scandurra commented, “Increasingly we need to be able to develop companies in Australia as opposed to buying from overseas suppliers and vendors.”

Foolish takeaway

Now could be the best time for governments to invest in building tech hubs, given the high levels of unemployment still experienced in Australia. Afterpay’s success proves that Australia can be at the forefront of technology leaders. Meanwhile, the growing market in cybersecurity offers further opportunities for local success. 

Will the Afterpay success story continue as Paypal confronts the Australian BNPL market? Only time will tell.

More reading

• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Is Afterpay (ASX:APT)’s BNPL competition heating up?
• ASX 200 drops, Zip down, Afterpay soars
• Here are some of the best performing ASX tech shares today

Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Atlassian and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Could Australia be the next tech hub? Afterpay (ASX:APT) CEO thinks it should be appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) may be out of form on Thursday but that hasn’t stopped the Metcash Limited (ASX: MTS) share price from pushing higher.

In fact, at one stage this morning the wholesale distributor’s shares climbed to a 52-week high of $3.67.

When the Metcash share price reached that level, it was up an impressive 42% over the last 12 months.

Why is the Metcash share price at a 52-week high?

There have been a couple of catalysts for the strong gain by the Metcash share price.

One was the release of a very strong half year result in December and the other has been the reaction to its update by brokers.

In respect to its results, for the six months ended 31 October, the company reported a 12.2% increase in group revenue to $7.1 billion. Including charge-through sales, the company’s revenue rose 12.3% to $8.1 billion.

And thanks to an improvement in its margins, Metcash reported an impressive 43% lift in underlying profit after tax to $129.6 million.

Can Metcash shares go even higher?

Although the Metcash share price has just hit a 52-week high, its gains may not be over.

Two brokers that have recently rated its shares as a buy are Goldman Sachs and Credit Suisse.

Last week Goldman retained its buy rating and $3.92 price target on Metcash’s shares. It is also forecasting a 16 cents per share fully franked dividend in FY 2021.

Whereas this morning, Credit Suisse retained its outperform rating and lifted its price target to $4.08. It has pencilled in a 15.9 cents per share dividend.

Both brokers note that Metcash’s businesses are benefitting from industry tailwinds and are eagerly anticipating the company’s strategy day event next week.

In respect to the latter, Goldman commented: “MTS is hosting a strategy day on the 16th of March. We expect to hear more about progress beyond mFuture and MTS’ foray into omni-channel retailing at this stage. We expect this roadmap to potentially be a strong catalyst for MTS in the near term.”

In addition to this, while not necessarily at this event, Goldman suspects that capital management initiatives could be announced in the near future.

“MTS has a very strong balance sheet. We expect capital management to become a potential topic during the FY21 results, and potentially become a catalyst to the share price,” it explained.

Based on the average of the two brokers’ price targets, the Metcash share price could still rise a further ~11% from here. In addition, the brokers also expect a dividend yield of ~4.4% over the 12 months.

This could make it worth considering, especially if you’re an income investors.

More reading

• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX

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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When COVID-19 shut down international travel and all but put an end to interstate travel, S&P/ASX 200 Index (ASX: XJO) hospitality shares were among the hardest hit.

With people staying close to home, odds are they won’t be spending much time in luxury hotels. Or eating at the various restaurants these hotels offer. Or taking a punt at their gaming venues.

JobKeeper helped these ASX 200 companies remain afloat and retain key staff. But JobKeeper is winding down as the vaccine rollout begins, and the government eyes an end to the pandemic.

Enter the government tourism stimulus package

Yesterday’s announcement of a $1.2 billion government tourism stimulus package could be just what ASX 200 hospitality shares need.

In an effort to boost economic growth and revive the battered tourism and hospitality industries, the package includes the government providing 800,000 half-price airfares to tourism-dependent areas.

Here’s what Prime Minister Scott Morrison told Today:

We have got to get tourists on the ground and that’s what is going to keep people in their jobs. Just like we have seen in many states where people have been getting in their cars and going to those tourist destinations, we need to get fights to far-flung areas in Cairns, Gold Coast and northern Tasmania and ensure those visitors are getting there…

This package will take more tourists to our hotels and cafes, taking tours and exploring our backyard.

Indeed, with people paying only half price for their airfare, they’ll have more money to spend on a hotel room, their meals and even a little extra punting cash.

ASX 200 hospitality shares could see a welcome lift

A potential influx of cashed-up travellers to areas like the Gold Coast could spell good news for the likes of ASX 200 listed The Star Entertainment Group Ltd (ASX: SGR) and Crown Resorts Ltd (ASX: CWN), among others.

Among its holdings across Australia, Crown Resorts owns the Mantra Crown Towers Resort in the Gold Coast.

Star Entertainment also has assets in major cities and tourist destinations across the nation, including the Star Gold Coast located in, you guessed it, the Gold Coast.

The Crown Resorts share price is edging higher today, up 0.1% in early afternoon trade. Over the past twelve months, Crown shares are up 8.5%, despite some significant recent issues around the company’s corporate governance.

Star Entertainment shares are also moving higher today, up 1.3%. That puts the Star Entertainment share price up nearly 22% over the past full year.

More reading

• Should ASX 200 investors be worried about inflation? Janet Yellen isn’t…
• Crown (ASX:CWN) share price facing double Royal Commission trouble
• Exploring the golden window of opportunity for ASX ESG investors
• The Crown Resorts (ASX:CWN) share price shakes off Moody’s credit decision
• Crown (ASX:CWN) share price lifts as director resigns

Motley Fool contributor Bernd Struben 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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The MetalsTech Ltd (ASX: MTC) share price is going bonkers today after the company announced its intention to capitalise on lithium.

The announcement stated that the mining company has had “strong interest” in its lithium assets and is assessing a commercialisation strategy into the battery metals sector.

After the company’s announcement, the MetalsTech share price shot up 75%, before settling to its current level of 17 cents. Its share price is currently still up 41% on yesterday’s close.

What did MetalsTech announce?

The company announced it is assessing a strategy to advance its high-grade lithium assets in Quebec ahead of recent interest.

MetalsTech has, in the past, received high-grade drilling results from the mine, finding prominent lithium and spodumene.

Not only is lithium predicted to be a massive gainer, but MetalsTech expects a recent spodumene supply shortage to increase over the coming years.

The company reports its Cancet project has high-grade near-surface spodumene mineralisation, making the mine a haven for the in-demand mineral. Further, potentially significant tantalum credits have been identified.

Cancet is MetalsTech’s most advanced lithium asset. The mine boasts excellent power, water and road infrastructure.

MetalsTech stated that by commercialising its Cancet project, it could focus on developing its Sturec Gold Mine. Sturec is the company’s flagship gold mine, located in Slovakia.

Management commentary

MetalsTech chair Russel Moran commented the company is “very fortunate” to have a portfolio of very prospective lithium assets.

Market sentiment towards lithium has surged and we are positioning our company to take advantage of this renewed interest. Cencet in particular is an exceptional high grade near surface lithium exploration opportunity and now is the time to strike.

To deliver maximum shareholder value, we are considering a range of commercialisation strategies designed to enable the Company to focus its efforts on the continued development of the Sturec Gold Mine whilst also allowing the lithium assets to be developed in the most efficient manner.

We have also been approached by several parties interested in acquiring Cencet outright so naturally the Company is reviewing all options in order to achieve the optimum outcome.

Other announcements

In addition to its intentions to commercialise Cencet, MetalsTech announced its newest appointment.

Chris Evans will be the company’s new executive of lithium operations. Evans is an experienced project delivery and operational management expert. He was responsible for building and bringing the Pilgangoora lithium mine and processing facility into operation.

MetalsTech share price snapshot

MetalsTech’s share price has soared recently, with today’s move being only the latest. While this morning’s 41% jump is the company’s largest move in recent times, it boasts a 240% return over the last 12 months. Although, since the beginning of this year the company’s share price has dropped 19%.

On current prices, MetalsTech has a market capitalisation of $17.5 million with approximately 146 million shares outstanding.

More reading

• Here’s why this ASX lithium share is soaring 10% today
• Here’s why the Amaero (ASX:3DA) share price rocketed 20% on open
• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Tesserent (ASX:TNT) share price jumps 14% on solid half-year results

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.

The post Why has the MetalsTech (ASX:MTC) share price boosted 41% today? appeared first on The Motley Fool Australia.

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ASX lithium share Sayona Mining Ltd (ASX: SYA) is rocketing higher today. After posting gains of 20% in earlier trading, Sayona shares are currently sitting at 32 cents, up more than 10% for the day so far.

Below, we take a look at the emerging ASX lithium miner’s latest announcement regarding its Tansim Lithium Project.

What’s driving this ASX lithium share higher?

The Sayona share price is surging after the company reported it has acquired 90 new claims around its emerging Tansim Lithium Project in Quebec, Canada.

Lithium is a core element in modern batteries, like lithium-ion batteries. And Sayona noted that demand for lithium is accelerating alongside the growth in global battery demand.

With the new claims, Sayona now has 275 claims at its Tansim Lithium Project, covering more than 15,900 hectares. That’s an increase of 44% from its previous holding.

The company plans to start a drilling program encompassing 26 holes, with the aim of expanding the lithium mineralisation. Sayona reported the results of its earlier diamond core drilling program on 27 January.

The ASX lithium miner also revealed the appointment of Yves Desrosiers as director of its Authier Lithium Project. Desrosiers previously held the role of vice president of mining operations for BlackRock Metals and served as COO and general manager at North American Lithium (NAL). The company noted that NAL is “currently subject to a bid from Sayona”.

Sayona Quebec’s CEO Guy Laliberte said, “We are now in an excellent position to advance from exploration to development and ultimately downstream processing.”

Sayona Mining share price snapshot

Having not moved much for months, the Sayona share price really blasted off in early January. With today’s intraday gains factored in, Sayona shares are up by more than 200% over the past six months. That compares to a gain of 14% on the All Ordinaries Index (ASX: XAO) over the same period.

More reading

• Here’s why the Amaero (ASX:3DA) share price rocketed 20% on open
• Is it ok to buy ASX 200 shares at a 52-week high?
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Tesserent (ASX:TNT) share price jumps 14% on solid half-year results
• Here’s why the Webjet (ASX:WEB) share price is flying

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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The Amaero International Ltd (ASX: 3DA) share price is performing strongly this morning following news of the company’s agreement with mining giant, Rio Tinto Limited (ASX: RIO). At the time of writing, the metal alloys producer’s shares are up 9.57% to 63 cents.

It’s worth noting that, when news broke out, Amaero shares reached an intraday high of 71 cents, up more than 23%, before some profit taking occurred.

What’s driving the Amaero share price higher?

The Amaero share price is pushing ahead today after the company updated investors with the positive announcement.

According to its release, Amaero has entered into an agreement with Rio Tinto to work together on the commercialising of Amaero’s high-performance, high-operating-temperature aluminium alloy (HOT AI).

Recently, Rio Tinto received a sub-licence to produce Amaero’s patented aluminium scandium alloys. Under the arrangement, Rio Tinto will exclusively provide Amaero with alloy billets to process into powder for 3D printing.

HOT AI is a breakthrough type of aluminium alloy that offers superior strength and durability at high operating temperatures. The lightweight material can be used in an array of defence and aerospace applications. In addition, it can also be employed in sports equipment industries such as the manufacturing of tennis rackets, baseball bats, bicycle frames, and more.

While Amaero holds the exclusive global commercial licence rights for HOT AI, the company applied for a broad international patent coverage in July 2020. It noted that it is now in the final stage of approval.

Amaero and Rio Tino plan to scale out the patented alloy’s production in Australia, the United States and other international markets.

The deal between both parties will run for a period of three years with options to extend for an additional three years. 

Management commentary

Amaero CEO Barrie Finnin welcomed the new partnership, saying:

We are very pleased to enter into this Agreement with Rio Tinto. This is an important step in the commercialisation of this high-performance aluminium scandium alloy that will be used in our breakthrough 3D metal printing technology. We look forward to working with Rio Tinto to progress the production of the alloy so we can commence the qualification process with key customers in the aerospace sector and other industries.

Rio Tinto sales and marketing vice president Tolga Egrilmezer went on to add:

As a global leader in aluminium and the first producer of high-quality scandium oxide in North America, Rio Tinto is uniquely positioned to provide a secure source of aluminium-scandium alloy to the market.

…This first sale demonstrates our ability to develop products that meet our customers’ needs, drawing on our technical expertise and world class assets.

The Amaero share price has accelerated over the past 12 months, delivering gains of 425% for investors.

More reading

• Is it ok to buy ASX 200 shares at a 52-week high?
• 5 things to watch on the ASX 200 on Thursday
• Why the Rio Tinto (ASX:RIO) share price is among the worst performers today
• Is this a better way to buy into the ASX mining supercycle?
• Macquarie sees upside for Rio (ASX:RIO) and BHP (ASX:BHP) share prices

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

The post Here’s why the Amaero (ASX:3DA) share price rocketed 20% on open appeared first on The Motley Fool Australia.

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The Australian share market and the S&P/ASX 200 Index (ASX: XJO) have had a rather wild ride in 2021 so far.

As it stands today (at the time of writing anyway), the ASX 200 is up a rather paltry 0.4% for the year to date. However, at various points over the past 3 and a bit months, the ASX 200 has been both up 3.5% year to date and down 1.1%. That stands in contrast to the back three-quarters of 2020 when it seemed the only way was up for the ASX 200.

However, amidst the relative volatility that 2021 has brought, we have also seen more than a few ASX 200 shares make new 52-week (and sometimes all-time) highs. Last month, it was ASX growth shares like Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P) and Pro Medicus Ltd (ASX: PME).

In March so far, we have seen ASX blue chips like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) have their turn at the top of the mountain.

So with a smorgasbord of ASX shares reaching new all-time highs, it begs the question: Is it ok to buy your favourite ASX shares when they are reaching new all-time highs?

That’s a harder question to answer than it might initially seem. You might point to the adage of ‘buy low, sell high’ to find your answer. And there is certainly truth in that. If you have the chance to buy your favourite ASX companies when they are unloved, it can be a very lucrative move indeed. Those investors who bought up big in the March 2020 share market crash have probably done very well for themselves. All of the shares mentioned above have certainly done so. In fact, if you picked up some Afterpay on 23 March 2020, you would be sitting happily on a gain of almost 1,200% today.

ASX shares: Buy low, sell high? Or just buy?

But crashes like these don’t tend to come around all that often if history is a guide. So do you just sit around in the meantime, amassing cash and praying for a crash?

Well, that’s probably not a great strategy. March last year saw the largest share market crash since at least the global financial crisis of 2008-2009. If you missed your chance in the GFC and decided to wait for the next crash, you would have waited more than a decade. And missed out on the hefty gains that came with it.

Additionally, we humans aren’t very good at biting the bullet when everything is turning to custard. You might think, ‘I’ll just wait until tomorrow when everything’s even lower’, and before you know it, markets are shooting up again.

Another point to make is this: the best ASX shares tend to spend most of their time going up. Today’s 52-week high might be next year’s 52-week low. We have seen this time and time again with companies like Afterpay.

If you love a company, it might just be better to bit the bullet and buy. You can always keep some cash on the sidelines in case there is a dip as well.

And so another adage might also ring true: time in the market beats timing the market. Sorry to end on a cliche, but they are there for a reason!

More reading

• Here’s why the Amaero (ASX:3DA) share price rocketed 20% on open
• ASX 200 down 0.9%: Flight Centre & Webjet jump, Afterpay sinks
• Is the ANZ (ASX:ANZ) share price a buy for dividends?
• 5 things to watch on the ASX 200 on Thursday
• Early Yallourn power station closure sets the pace for ASX energy sector shakeup

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is it ok to buy ASX 200 shares at a 52-week high? appeared first on The Motley Fool Australia.

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is out of form again and dropping notably lower. The benchmark index is currently down 0.9% to 6,652 points.

Here’s what is happening on the market today:

Travel shares jump

News that the Federal Government has announced a major stimulus package to support the domestic tourism sector has given travel shares a boost today. The likes of Flight Centre Travel Group Ltd (ASX: FLT), Qantas Airways Limited (ASX: QAN), and Webjet Limited (ASX: WEB) are also pushing higher. They are expected to benefit from the government’s plan to introduce a $1.2 billion package that will see certain regional domestic airline tickets cut by 50%.

Tech shares tumble

The Australian tech sector is acting as a drag on the ASX 200 on Thursday. At the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is down a disappointing 2.8%. Among the worst performers in the sector are Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P). Investors appear concerned by the prospect of rising bond yields.

SEEK names its new CFO

The SEEK Limited (ASX: SEK) share price is edging lower today despite naming its new Chief Financial Officer (CFO). According to the release, Kate Koch will replace the outgoing Geoff Roberts when he retires at the end of June. Koch is currently the Chief Financial Officer of RMIT University, having held that role since 2017. Before that, she was Group Head of Finance & Performance at UK supermarket giant Tesco and the CFO of the Financial Times Group.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Flight Centre share price with a 9% gain. This follows the aforementioned announcement of government stimulus. The worst performer has been the Afterpay share price with an 8% decline. Investors continue to sell tech shares amid concerns over rising bond yields.

More reading

• Here’s why the Webjet (ASX:WEB) share price is flying
• Why Flight Centre, Qantas, ResApp, & Volpara are racing higher
• Qantas (ASX:QAN) share price rises despite fears tourism will struggle after JobKeeper
• Why the Qantas (ASX:QAN) share price is soaring today
• SEEK (ASX:SEK) share price on watch after naming its new CFO

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and SEEK 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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The Tesserent Ltd (ASX: TNT) share price is receiving some much-needed love today after falling some ~20% this year. This follows an increasing need for cybersecurity services amid mounting pressure from Chinese and Russian hackers attacking small and large businesses alike. 

Tesserent share price lifts on strong earnings

The Tesserent share price is currently trading 6.12% higher at 26 cents after the company released its financial results for the half-year ended 31 December 2020 (H1 FY21) this morning. In earlier trade, Tesserent shares jumped by around 14% to an intraday high of 28 cents before retreating to their current level.

The company achieved $36.5 million in turnover which represents more than 500% growth on the prior corresponding period. This resulted in operational earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $2.9 million compared to the prior period’s loss of $1.7 million. 

Tesserent has described this achievement as ‘transformational business growth’ resulting from strategic acquisitions and increased business unit cross-sales. In H1 FY21, Tesserent completed five acquisitions that have all made initial contributions to the group’s revenues during the half. 

Outlook

According to Tesserent, the company’s relentless M&A activity has enhanced its value proposition for clients in what it calls Cyber 360 capabilities. Tesserent aims to deliver such capabilities to an increasing number of Australian organisations and drive organic revenue growth through the cross-selling of services. The company’s key focus markets include government, critical infrastructure and banking & finance. 

Tesserent increased its cash at bank from $4 million to $8 million during the first half. It cites that it will continue to drive its acquisition strategy to expand on Cyber 360 capabilities and increase shareholder value through incremental earnings per share (EPS) growth. 

The company is currently focused on the Australian market but has hinted at exploring international expansion opportunities with a focus on Australia’s key ‘Five Eyes’ allies, which consist of the United States, the United Kingdom, New Zealand, and Canada.  

Tesserent’s growth momentum has given it the confidence to eye an ambitious target of $150 million turnover by June 30 2021. 

More reading

• ASX tech correction? 10 of the worst-hit shares
• The Tesserent (ASX:TNT) share price is sinking 20% on record revenue

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.

The post Tesserent (ASX:TNT) share price jumps 14% on solid half-year results appeared first on The Motley Fool Australia.

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