Tag: Motley Fool

The Facebook thing?

It’s hard.

In the first instance, I should say that, at the time of writing, Facebook Inc (NASDAQ: FB) has blocked access to almost all content on The Motley Fool’s Australian Facebook page. So that’s going to probably make me biased, even if subconsciously.

(Then again, by my reckoning the media stories are about 99-to-1 bashing Facebook for its decision, and I don’t imagine that’s free from conscious- or unconscious bias, either.)

On one side are the free marketeers.

By their reckoning, media proprietors are willingly posting their content on social media, without compulsion. If they don’t like what Facebook is doing, they could simply stop posting.

I have a degree of sympathy with that view. After all, those same publishers have been setting terms for their journos, production houses and other suppliers on the same basis for years.

Moreover, it’s a free, functioning market, and presumably the media houses are getting value in return for posting on Facebook (and elsewhere) so the intervention by government seems heavy-handed and Facebook’s response also heavy-handed but perhaps not unreasonable.

On the other hand?

Facebook takes the content and makes a small (actually, large) fortune from it, often with little or no return to the creators. For example, to get a video to work well for Facebook viewers, it has to be uploaded, then Facebook inserts its own ads, making money along the way, usually without a cent to the person or organisation that posted the video.

And journalism isn’t the same as the market for baked beans or toilet paper. Society has a vested interest in quality journalism; in holding governments to account, in presenting a diversity of thought and opinion, and in making sure sunlight is shone in appropriate places.

While the focus has been on the big end of town, Facebook’s ban also hits the smaller, independent and regional players, too — the ones who don’t have the same ad budgets, brand recognition or distribution resources.

As I said, it’s hard.

On balance, I think the country is better served by ensuring media sources are available and prominent in our modern day ‘town squares’. I’m not sure Facebook should have to pay for it, but I’m pretty sure we’re poorer for news being unavailable on the platform.

What’s interesting, of course, is that Google is taking a very different approach, having (reportedly) struck deals to pay most of the major publishers and making them part of its Google News Showcase. 

(Full disclosure: I own shares in Google’s parent company, Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)).

So we get to see two very different strategies play out. They’re not exactly the same as a double-blind controlled trial, but it’ll be fascinating to watch.

Will Google get enough value for the money it’s paying?

Will the media companies lose too many eyeballs by being off Facebook?

How will Facebook play it, knowing that other countries are almost certainly preparing to hit ‘copy and paste’ if the Australian Government gets the social network to blink.

And how will the government respond? 

There are plenty of people who see the Feds as just doing the media companies’ bidding, too. And others who fundamentally disagree.

Talk about a tangled web!

(Pun not intended, but I’ll take it!)

I have to say, though, when you can manage to get The Libs, Labor, The Greens, influential businesses and the unions all on the one side — with you as Robinson Crusoe on the other — that’s some impressive work!

And the business angle?

Alone, these actual and potential payments are small beer. But if they’re repeated worldwide, they’ll start to add up, and fast.

Of course, getting on the ‘inside’, with some commercial skin in the game also probably buys Google a seat at the table for any future changes, too; something I’m sure it’ll be quick to remind the powers-that-be.

The large businesses are set for an unexpected but very welcome payday. Getting paid more, for something you already do, is always a nice boost — and in almost all cases will end up flowing almost completely to the bottom line (notwithstanding a government and community expectation that they continue to invest in content, accordingly).

And the smaller media businesses will no doubt be hoping that a few big deals will both soothe Facebook’s issues and placate the government, so they can again use Facebook to distribute their content and continue to build and serve their audience. I’ve seen reports this morning that up to one-third of traffic to smaller outlets is via Facebook. Not great for media diversity.

(While we’re not a traditional media company — and I don’t speak on behalf of The Motley Fool when it comes to government affairs — I’m also pretty keen that we are allowed back on Facebook as soon as possible to continue to interact with our readers and members, too. Mark, if you’re reading this, we’d appreciate it!)

Lastly, it’s a wake-up call for businesses that had previously relied on Facebook as a major part of their corporate strategy. They weren’t wrong for making hay while the sun shone, but it may have exposed some gaps, too. A recent analogy was the end of the Daigou ‘suitcase’ trade plied by Chinese ex-pats, which caught Blackmores Limited (ASX: BKL) out, a few years ago. (I own Blackmores shares, too.)

The same lessons also apply to investors.

Never forget to assess a business’ reliance on a few, concentrated customers or suppliers. Don’t arbitrarily avoid such businesses — they can be very successful — but understand those risks so you can invest accordingly. 

And understand the potential for regulatory changes, too. They can hurt (or help).

Sometimes it makes sense to avoid these businesses. Other times, it might impact position sizing in your portfolio, or the way you think about which other companies to include in that portfolio, to mitigate those risks.

And remember not to think about diversification just in terms of product or industry. Think about changes in, say, regulations that might impact otherwise unrelated industries, or changes in currencies, consumer behaviour or interest rates.

In short, break down your current and potential shareholdings into their component parts, and see which factors they have in common and which are different.

That’ll best help you sail these sometimes stormy seas.

And that’s something we can all, ahem, Like.

Fool on!

More reading

• Facebook bans Aussies from sharing, viewing news
• Is eBay stock a buy?
• Nasdaq at record high! Here’s what it means for the ASX 200
• 4 most trusted ASX companies (and the 4 least trusted)
• Facebook declares war on Apple

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Scott Phillips owns shares of Alphabet (C shares) and Blackmores Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Facebook. 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 Transurban Group (ASX: TCL) share price is defying the market weakness and edging higher today.

In afternoon trade the toll road operator’s shares are up slightly to $12.65.

This compares to a disappointing 1.1% decline by the S&P/ASX 200 Index (ASX: XJO).

Why is the Transurban share price trading higher?

Investors have been buying Transurban shares today following the release of announcement in relation to its US operations.

According to the release, Accelerate Maryland Partners (AM Partners), led by Transurban and Macquarie Group Ltd (ASX: MQG), has been selected as the developer to deliver the American Legion Bridge I-270 to I-70 Relief Plan in the Greater Washington Area.

Transurban holds 60% of AM Partners, with the remaining 40% held by Macquarie.

The release explains that with exclusive rights of negotiation, the selection of AM Partners represents the first step in the predevelopment process to establish a project plan and concession agreement in partnership with the Maryland Department of Transportation State Highway Administration, its stakeholders, and communities.

A final concession agreement and financial close is expected in late 2022. This agreement is pending approvals by the Maryland Transportation Authority Board and the Maryland Board of Public, which are expected by the end of FY 2021.

What is the plan?

The American Legion Bridge I-270 to I-70 Relief Plan is expected to deliver High Occupancy Toll (HOT) lanes to approximately 60 kilometres of highway connecting Northern Virginia with key business and residential centres in Maryland. These HOT lanes will be similar to Transurban’s Virginia Express Lanes.

The Plan involves express lanes to be added from the George Washington Memorial Parkway in Virginia, across and including the American Legion Bridge, and on the I-270 to the I-70 in Maryland.

The American Legion Bridge I-270 to I-70 Relief Plan is expected to cost US$3 billion to US$4 billion. Whereas the overall Maryland Express Lanes project is expected to cost over US$9 billion.

“Delighted”

Transurban’s Chief Executive Officer, Scott Charlton, said: “We are delighted that Accelerate Maryland Partners has been selected as the developer of this project following a highly competitive process. Expansion into Maryland has been our ambition for some time given the strong regional demographics and large number of motorists who are travelling between Virginia and Maryland. We are ready to begin to develop a project that delivers value for Maryland, its communities and motorists.”

“Our business has commenced its next phase of growth in North America with three projects in delivery or development in Virginia, this our first project in Maryland, and the recent introduction of strategically aligned partners which are committed to growing alongside Transurban in the region,” he commented.

Mr Charlton added: “In parallel, we are exploring asset enhancement opportunities across the Greater Washington Area assets, with additional expansion opportunities and potential for third-party asset divestments.”

More reading

• 2 of the best ASX dividend shares to buy right now
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• Why the Transurban (ASX:TCL) share price is sliding today
• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal
• 2 super ASX 200 shares to buy for your retirement portfolio

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

The post Why the Transurban (ASX:TLS) share price is avoiding the market weakness appeared first on The Motley Fool Australia.

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Even though many stock prices have risen over recent months, a plan to buy shares could still be the best means of making a million.

A number of high-quality companies currently trade at low prices. This suggests they could have large scope for capital growth in the coming years.

Furthermore, the lack of reward potential available among other mainstream assets could mean that a portfolio of shares outperforms its peers.

The potential to buy shares at cheap prices

The uncertain economic outlook has caused many stocks to trade at cheap prices. The history of the stock market shows that a plan to buy shares while they offer wide margins of safety can be hugely profitable. It allows an investor to take advantage of market cycles, in terms of buying stocks at low prices and selling them at high prices.

Such a strategy has largely been popular because the stock market has a long track record of recovering from even its very worst declines. For example, indexes such as the FTSE 100 Index (FTSE: UKX) halved during the global financial crisis.

However, within just a handful of years they recovered to post new record highs. Although this outcome cannot be guaranteed to take place for all shares after the 2020 stock market crash, a likely economic recovery could cause stock prices to surge in the coming years.

Relative appeal of shares

While now may be the right time to buy shares because of their low prices, other assets seem to lack investment appeal. For example, income-producing assets such as cash and bonds now offer disappointing returns because of low interest rates. Furthermore, the outlook for interest rates means that this situation may persist over the medium term, as policymakers favour an economic recovery ahead of maintaining low levels of inflation.

Similarly, assets such as gold and property could lack appeal at the present time. The precious metal trades close to a record high, which suggests there is limited scope for capital gains. House prices are also relatively high, which could signal a lack of capital growth potential in comparison to a portfolio of undervalued shares.

Making a million

Making a million through a strategy that seeks to buy shares at low prices could be successful in the long run. Even if an investor matches the high single-digit annual returns posted by the stock market in recent decades, a $100,000 investment today could be worth over a million within 30 years.

However, with a likely stock market rally ahead and low valuations on offer, making a million from buying shares right now could be a faster process. Such a strategy may lead to market-beating returns that allow a portfolio to grow at a fast pace – especially when compared to the performance of other mainstream assets.

More reading

• Why the Transurban (ASX:TLS) share price is avoiding the market weakness
• Here’s why the IntelliHR (ASX:IHR) share price is rocketing 15% today
• Novonix (ASX:NVX) share price is powering up 18% today. Here’s why
• Why CSL, LiveTiles, OceanaGold, & Woodside shares are tumbling lower
• Vita Group (ASX:VTG) share price up on results, despite Telstra woes

Motley Fool contributor Peter Stephens 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 Stock market recovery: Why I’d still buy shares today to make a million appeared first on The Motley Fool Australia.

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The IntelliHR Ltd (ASX: IHR) share price is leaping higher today, up 15.38% at 45 cents in early afternoon trading.

This follows the release of the data analytics company’s financial results for the half-year ending 31 December (H1 FY21).

What did intelliHR report?

In this morning’s ASX release, intelliHR reported contracted annual recurring revenue of $2.87 million. That’s up 82%, or $919,000, compared to the first half of FY20.

The company credited its international expansion for bringing in a record number of new contracted subscribers for the half-year. The 29,170 subscribers as at 31 December represented a 147% increase year-on-year.

There was also a 58% year-on-year increase in annual recurring revenue (ARR) per account. Its total new contracted customers for the half grew by 60% compared to the prior corresponding period (pcp), with 43 new customers added.

intelliHR’s total expenses also ramped up by $1,47 million, 63.7% higher than H1 FY20. The company pointed to an increase of $1.02 million in employee benefits costs due to planned team growth and a $729,000 non-cash increase in expenses from the issue of new employee share benefits for the rise.

The company reported a loss after income tax expense of $3.03 million, compared to the loss of $2.32 million in the pcp. Diluted earnings per share (EPS) of –1.23 cents was up from –1.54 cents in the corresponding period.

A 20% reduction in the company’s cash burn rate left it with the strongest cash position in its history, with $6.86 million cash as at the end of the half-year.

Management commentary

Commenting on the results, intelliHR managing director Robert Bromage said:

Over 40% of our subscribers are now located outside Australia and we have entered a new phase in our revenue generation with three international enterprise customers added in 1H21. This increased average customer headcount by 45%.

intelliHR’s recent continued Enterprise success has established its credibility as having a strongly differentiated people management solution capable of competing with leading industry incumbents.

Looking ahead, Bromage added:

With multi-language support to be added to the platform in the coming weeks, our plan is to target Europe with expectations of market entry later this year, significantly increasing our addressable market.

About the intelliHR share price

It’s been a great 12 months for intelliHR shareholders, with shares up 550% since this time last year. By comparison, the All Ordinaries Index (ASX: XAO) is down 2% in that same time.

Year-to-date, the intelliHR share price is down 16%.

More reading

• The Silver Mines (ASX:SVL) share price falls despite positive drill results
• 3 exciting small cap ASX shares to put on your watchlist
• The NRW Holdings (ASX:NWH) share price has plunged 16%. Here’s why
• Why the Asaleo Care (ASX:AHY) share price is up 5% today
• The Rhipe (ASX:RHP) share price slides despite strong sales growth

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.

The post Here’s why the IntelliHR (ASX:IHR) share price is rocketing 15% today appeared first on The Motley Fool Australia.

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The Novonix Ltd (ASX: NVX) share price is soaring in midday trade. This comes after the company announced a partnership agreement with Emera Technologies on developing innovative battery technology.

At the time of writing, shares in the integrated developer and supplier of high-performance materials, equipment, and services for the lithium-ion battery industry are up 18.4% to $3.41.

What did Novonix announce?

The Novonix share price is rising after reporting a positive update that could open the door to new market opportunities.

In today’s release, Novonix advised that it will collaborate with Emera Technologies to develop and manufacture energy storage systems. This will be conducted through Novonix’s wholly-owned subsidiary, Novonix Battery Technology Solutions.

Both parties are developing battery pack systems to support microgrids in harnessing solar power to deliver direct to people’s homes. The hope is this may lead to significant prospects within the North American market.

Novonix and Emera Technologies plan to field test the first lot of demo units sometime this year. This will build a base for future modifications that will further refine system specifics and design.

About Emera Technologies

Emera Technologies, a subsidiary of parent company Emera Inc, is an international energy holding company. The business unit is based in Halifax, Nova Scotia, and recorded assets of more than CA$32 billion in 2019.

The company focuses on developing new ways to deliver renewable energy to customers.

Last year, Emera Technologies launched its microgrid power and battery business, BlockEnergy. The first utility-owned, microgrid platform that is a plug-and-play energy system delivering distributed energy at residential community-scale homes.

Management commentary

Novonix co-founder and chief executive Dr Chris Burns welcomed the partnership, saying:

The BlockEnergy project is a great example of applying our technology to real life projects and developing systems with specifications not available currently in commercial products, and that have tangible downstream applications.

This project brings the opportunity to partner on not only the development but also manufacturing of new battery systems with significant market opportunities. The target market is not limited to the United States but will also include a focus on opportunities and customers here in Canada

Emera Technologies president and CEO Rob Bennett added:

We’re really excited about this partnership and this project. We’re developing something that doesn’t exist today, that will help provide people with cleaner, more reliable energy, and we’re able to capitalize on expertise at home in Nova Scotia to do that.

About the Novonix share price

Over the past few months, the Novonix has become the new ‘it’ player, rising an astonishing 174% at the turn of 2021.

Looking back at its performance of the past year, the company’s shares hit a low of 18 cents in March. However, more recently in January, the Novonix share price reached an all-time high of $4.23.

Based on today’s prices, the company commands a market capitalisation of around $1.18 billion.

More reading

• Why the Novonix (ASX:NVX) share price jumped 11% this morning
• Why Novonix, Recce, Singular Health, & Starpharma shares are storming higher
• BHP Energy and Zip were among the most traded ASX shares last week
• Why the Novonix (ASX:NVX) share price is down 10% today
• The Novonix (ASX:NVX) share price is on a rollercoaster ride 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.

The post Novonix (ASX:NVX) share price is powering up 18% today. Here’s why appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) looks set to end the week with a decline. In afternoon trade, the benchmark index is down 0.75% to 6,833.8 points.

Four ASX shares that have fallen more than most today are listed below. Here’s why they are tumbling lower:

CSL Limited (ASX: CSL)

The CSL share price is down over 2.5% to $281.65. This appears to be due to a mixed response to its half year results yesterday. While analysts at Goldman Sachs were impressed with its stellar profit growth in the first half, they were surprised that this didn’t lead to an upgrade to its full year guidance. This has the broker concerned and led to it downgrading CSL’s shares to a neutral rating with a $305.00 price target.

LiveTiles Ltd (ASX: LVT)

The LiveTiles share price has fallen a further 5% to 25.7 cents. Investors have been selling this software company’s shares since it released further details of a record new contract win. The market appears to have been left underwhelmed that that the “record multi-million dollar deal” was worth $3 million over three years. And while it could increase in value over time, there’s no guarantee that this will be the case.

OceanaGold Corp (ASX: OGC)

The OceanaGold share price has crashed 8.5% lower to $2.01. This follows the release of its full year results after the market close on Thursday. Production issues led to the gold miner reporting a 23.2% decline in revenue to US$500.1 million and a 40% reduction in EBITDA to US$129.6 million. And due to higher depreciation and amortisation, OceanaGold posted a loss after tax of US$74.3 million.

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is down 4% to $24.35 despite announcing a sale and purchase agreement with RWE Supply & Trading. The agreement is for the supply of LNG from Woodside’s global portfolio for a term of seven years commencing in 2025. In other news, this morning UBS held firm with its neutral rating and cut the price target on its shares slightly to $26.05. This follows its full year results release this week.

More reading

• CSL (ASX:CSL) share price hit by broker downgrade
• 5 things to watch on the ASX 200 on Friday
• ASX 200 mixed, CSL reports 44% profit growth, TWE soars
• Why did Aussie investors get a 9% dividend cut from CSL (ASX:CSL)?
• Why the LiveTiles (ASX:LVT) share price is tumbling 11% lower today

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. and LIVETILES FPO. The Motley Fool Australia has recommended LIVETILES FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why CSL, LiveTiles, OceanaGold, & Woodside shares are tumbling lower appeared first on The Motley Fool Australia.

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The Vita Group Ltd (ASX: VTG) share price is moving upwards today on the back of the company’s first-half results. This is despite Telstra Corporation Ltd (ASX: TLS) spelling the end of its current dealer agreement with Vita, disclosed last week.

What’s moving the Vita Group share price today?

Profits buoyed by JobKeeper

Today’s half-year results for Vita Group portray a challenging half for the company. Revenues dropped 25% to $323.7 million due to retail ICT and accessory volumes impacted by COVID-19.

On the other hand, the company’s pivot towards its skin health and wellness (SHAW) segment showed strong organic growth. Artisan Aesthetic Clinics experienced a 37% lift in revenues compared to the prior period. This result stems from an increase in client visits and clinic numbers. Additionally, clients have increased their average spending per visitation.

Shareholders might have caught themselves cheering for the increase in earnings before interest, tax, depreciation, and amortisation (EBITDA). In contrast to the company’s revenue, EBITDA increased by 23% to $32.6 million.

However, the result isn’t all cheerful – a contributor to this increase was the inclusion of JobKeeper payments. To be precise, the group received net payments of $12 million from the federal government. Underlying EBIT, when excluding JobKeeper actually fell 27% to $16.1 million.

Telstra uncertainty in the mix

With the announcement of Telstra’s intention to transition to a full ownership model for all of its stores, the future looks murky for Vita. Vita currently operates a total of 104 Telstra retail stores on behalf of the telco giant. The current agreement will conclude on 30 June 2025, so the clock is ticking for the next 4 years.

Vita continues to ensure it is in discussions with Telstra to facilitate a suitable transition arrangement. But a week has passed, and no further details have been provided on this front.

Currently, Vita has stipulated it will continue to manage its Telstra store network in the meantime. Shareholders are anxiously awaiting further information considering the large percentage of revenue derived through its partnership with Telstra.

CEO Maxine Horne commented on the result and outlook for the company:

We are pleased to have maintained profitability during a challenging period. Our progress in Artisan is strong and sustainable. The team has done an excellent job of managing our ICT channel and supporting Telstra customers despite COVID-19. We are about to embark on a new chapter.  We have significant capability in running a national, dispersed network and delivering a premium experience, resulting in value for all. The Vita team are disciplined, focused and passionate about looking after our customers and I thank them for their hard work (historical and future) and willingness to adapt and evolve.

A dividend for your troubles

Vita Group also announced that it will pay a fully franked interim dividend of 5.6 cents per share. This time last year Vita skimped out on a dividend payment to take a conservative approach during the peak of the COVID-19 crash. Today’s announced dividend represents a 7.7% increase on the interim dividend paid back in 2019. 

At the time of writing, the Vita Group share price is sitting at 93 cents, up 6.29% in morning trade but down 25% on this time last year.

More reading

• Why the Whispir (ASX:WSP) share price is surging 10% higher today
• 2 high yield ASX dividend shares to buy today
• Telstra (ASX:TLS) full year dividend for 2021 expected to be 16 cents per share, fully franked
• Morgan Stanley: ASX earnings season is topping expectations
• 3 reasons the Telstra (ASX:TLS) share price is storming higher

Motley Fool contributor Mitchell Lawler owns shares of Vita Group Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Vita Group (ASX:VTG) share price up on results, despite Telstra woes appeared first on The Motley Fool Australia.

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The Silver Mines Ltd (ASX: SVL) share price is falling today, down 4% at 24 cents in late morning trading.

This comes despite the ASX silver miner reporting some positive assay results from the diamond drilling program at its Bowdens Silver Project in New South Wales.

What drilling results did Silver Mines report?

In today’s ASX announcement, Silver Mines reported the assays from its Bowdens project had revealed “outstanding high-grade drill results”. According to the company, Bowdens is the largest undeveloped silver deposit in Australia.

Preliminary results returned from the drill hole include:

• 6 metres @ 471g/t silver equivalent (413g/t silver, 1.14% lead, 0.39% zinc) from 96 metres which includes:
• 0 metres @ 1090g/t silver equivalent (966g/t silver, 2.86% lead, 0.56% zinc) from 97 metres; and
• 1 metres @ 874g/t silver equivalent (789g/t silver, 1.67% lead, 0.59% zinc) from 122 metres

Commenting on the results, Silver Mines managing director Anthony McClure said:

We are delighted with the recent exploration from Bowdens Silver. Our team has been tenacious in its work in understanding the deposit and its extensions. This current hole BD21002 has produced some of the best intercepts ever returned at Bowdens further demonstrating the quality of the deposit.

McClure added that the company has 2 rigs on the site to continue with the exploration program to test other high-grade silver targets around the current resource and extensions at depth.

Silver Mines share price and company snapshot

As its name implies, Silver Mines is a silver exploration company. The company’s major NSW operations include projects at Bowdens, Barabolar, Webbs, Conrad, and Tuena.

With the price of silver recently hitting multi-year highs, long-term Silver Mines shareholders have been well rewarded. Over the past 12 months, the Silver Mines share price is up 120%. That compares to a 2% loss on the All Ordinaries Index (ASX: XAO).

Year-to-date, the Silver Mines share price is down 7%.

More reading

• The NRW Holdings (ASX:NWH) share price has plunged 16%. Here’s why
• Why the Asaleo Care (ASX:AHY) share price is up 5% today
• The Rhipe (ASX:RHP) share price slides despite strong sales growth
• Will ASX silver shares ride the commodity super cycle to new highs?
• Why the Silver Mines (ASX:SVL) share price is sinking today

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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Shaver Shop Group Ltd (ASX: SSG) shares nudged new highs this morning after the company released its half-year results. In early trade, the Shaver Shop share price leapt around 4% to $1.24, just shy of its $1.25 52-week high.

At the time of writing, however, Shaver Shop shares have retreated back to $1.19, flat for the day so far.

What’s impacting the Shaver Shop share price?

The Shaver Shop share price was temporarily boosted this morning after the company released its results for the first half of FY21.

Shaver Shop’s report was highlighted by an 85.5% increase in net profit after tax (NPAT) for the first half to $14.2 million. The company also saw a 44.7% increase in gross margins for the period.

The retailer reported record sales of $123.6 million for the first half, fuelled by its online store. The company highlighted that online sales grew 102% and represented one in every three corporate sales. In addition, sales growth was strongest across higher-margin and hair-cutting products.

Shaver Shop management noted that the company had benefitted from continued and growing momentum in DIY personal care products.

In addition, Shaver Shop highlighted the company’s strong balance sheet with $41.1 million cash. As a result, it declared an interim dividend of 3.2 cents per share, a 52.4% increase from the prior corresponding period.

Outlook

Despite reporting stellar sales, Shaver Shop did not provide guidance for full-year sales and earnings. The company cited the ongoing uncertainties surrounding COVID-19 for the decision.

However, Shaver Shop noted that total sales in the first six weeks of the second half were up 17.3% with same store sales up 17.6% for the period.

Shaver Shop’s Managing Director and CEO Cameron Fox shed some light on the company’s potential outlook. In a statement, Fox stated that “…in store service metrics remain outstanding, which puts us in the best position possible to comp the exceptional growth rates we experienced in Q4 of FY2020.”

Shaver Shop share price snapshot

Shaver Shop is a speciality retailer that focuses on male and female personal grooming products. The company currently operates 121 stores across Australia and New Zealand.

The Shaver Shop share price has gained more than 60% over the past year. This came despite the retail chain’s shares falling as low as 23 cents in March 2020. Based on the current Shaver Shop share price, the company commands a market capitalisation of around $145 million.  

More reading

• ASX 200 down 0.6%: Cochlear jumps, Goodman upgrades guidance
• The Atomos (ASX:AMS) share price is up 15% in a week
• Why Cochlear, Goodman, Lovisa, & Whispir shares are surging higher
• Why is the WAM Capital (ASX:WAM) share price on the rise?
• The SelfWealth (ASX:SWF) share price drops 8% despite revenue leap

Motley Fool contributor Nikhil Gangaram 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 the Shaver Shop (ASX:SSG) share price just nudged new highs appeared first on The Motley Fool Australia.

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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is out of form and tumbling lower. The benchmark index is currently down 0.6% to 6,843.7 points.

Here’s what is happening on the market today:

Cochlear half year results impress

The Cochlear Limited (ASX: COH) share price is surging higher today after the release of a surprisingly strong half year result. For the six months ended 31 December, Cochlear posted an underlying net profit of $125.3 million. This was only a 4% constant currency decline on its record first half profit in the prior corresponding (and COVID-free) period. Looking ahead, it has provided full year underlying net profit guidance of $225 million to $245 million. This represents a 46% to 59% increase on FY 2020’s profits.

Pro Medicus founders sell shares

The Pro Medicus Limited (ASX: PME) share price is climbing today despite announcing that its founders are selling one million shares each. The two commanded a price of just under $46.00 per share, which represents a total consideration of $46 million each. However, this was less than 4% of their individual holdings and was undertaken following board encouragement. The sales are expected to boost liquidity.

Goodman upgrades guidance

The Goodman Group (ASX: GMG) share price is pushing higher after investors responded positively to its half year results. The global integrated property company reported a 16% increase in operating profit to $614.9 million for the half. This was driven by new developments, strong demand, and like-for-like net property income growth of 3%. Also going down well with investors was management’s guidance for the full year. It now expects operating profit growth of 12% in FY 2021. This compares to previous guidance of 9% growth.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Cochlear share price with a 7% gain. This follows its half year results release. The worst performer has been the Treasury Wine Estates Ltd (ASX: TWE) share price with a 5% decline. This may be due to profit taking after a very strong gain yesterday.

More reading

• Why Cochlear, Goodman, Lovisa, & Whispir shares are surging higher
• Why the Pro Medicus (ASX:PME) share price is climbing today
• Why the Goodman (ASX:GMG) share price is pushing higher
• Cochlear (ASX:COH) share price in focus after delivering a solid half year result
• 5 things to watch on the ASX 200 on Friday

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 and recommends Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended Cochlear Ltd. and 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 ASX 200 down 0.6%: Cochlear jumps, Goodman upgrades guidance appeared first on The Motley Fool Australia.

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