Tag: Motley Fool

Vulcan Energy Resources Ltd (ASX: VUL) shares are sliding in late afternoon trade. At the time of writing, the Vulcan share price is slumping 2.7% to $7.21.

This comes despite the company announcing a collaboration with DuPont Water Solutions to advance its zero-carbon lithium extraction operations. Under the umbrella of one of the world’s largest chemical companies, DuPont Water Solutions specialises in purification and specialty-separation technologies. The company operates on a global scale delivering sustainable methods of water management.

What did Vulcan announce?

The Vulcan share price is trending lower despite the company releasing the positive announcement soon after market open this morning. 

According to its release, the partnership with DuPont is designed to assist Vulcan with achieving the world’s first zero-carbon lithium extraction.

Under the agreement, DuPont will supply direct lithium extraction (DLE) products that will test and scale-up the extraction process. This will include lithium selective sorbent, nanofiltration, reverse osmosis, ion exchange resins, ultrafiltration, and close-circuit reverse osmosis.

DuPont will conduct input and test-work during Vulcan’s zero-carbon lithium project definitive feasibility study (DFS).

The latest deal is another positive push for Vulcan’s efforts to accelerate the development of its project. The company noted that acquiring DLE products from a major supplier will minimise the technical risks associated with the extraction process.

Management commentary

Vulcan Managing Director Dr Francis Wedin touched on the partnership agreement, saying:

Collaborating with a company like DuPont is an important de-risking strategy for the DLE component of our Zero Carbon Lithium project. DuPont’s diverse set of products which can be manufactured at scale are likely to be well-suited to sustainably extract the lithium from the brine.

We look forward to a successful long-term relationship with DuPont, to implement our strategy of becoming a major supplier of our unique Zero Carbon Lithium hydroxide to the European electric vehicle battery market.

DuPont Global Vice President and General Manager HP Nanda went on to add:

We are proud to bring our expertise in water filtration and purification to Vulcan Energy’s Zero Carbon Lithium project to minimise the carbon and water footprint of lithium extraction and production — to more sustainably power mobility for years to come.

Update on the Vulcan share price

It has been an interesting few months for the Vulcan share price, particularly since the start of the year. Vulcan shares have risen to astronomical highs lately, gaining nearly 160% year to date.

While Vulcan shares are sliding today, numerous positive company updates, as well as strong investor sentiment surrounding the lithium industry, have helped push its shares higher in 2021.

Based on the current share price, Vulcan has a market capitalisation of roughly $775 million.

More reading

• Why the Vulcan Energy (ASX:VUL) share price is charging higher again
• Why the Vulcan (ASX:VUL) share price is storming higher today
• ASX 200 falls 0.9%, Nick Scali reports, Vulcan jumps
• Why Alliance Aviation, REA Group, SEEK, & Vulcan shares are charging higher
• Here’s why the Vulcan Energy (ASX:VUL) share price is storming 14% higher

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 Vulcan (ASX:VUL) share price slumps despite new partnership appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qz1UZK

Next week marks one year since the S&P/ASX All Technology Index (ASX: XTX) debuted. Launched at the end of February 2020, the All Technology Index debuted just in time for the March market meltdown.

The index saw its value tumble 42% between launch and the March 2020 low point. But all was not lost — since its March low, the index has regained 159% and is now up 50.5% from its debut, having performed on par with the NASDAQ 100 over the same period. 

The All Technology Index was designed to be representative of Australia’s burgeoning tech sector. Consisting of 46 companies with a combined market capitalisation of over $100 billion on debut, the index now includes 69 companies with a combined market capitalisation of over $170 billion. The top 10 companies in the index, by market capitalisation, are: 

	Company	Market capitalisation
1	Afterpay Ltd (ASX: APT)	$42.26 billion
2	REA Group Limited (ASX: REA)	$20.34 billion
3	Xero Limited (ASX: XRO)	$18.69 billion
4	Seek Limited (ASX: SEK)	$10.94 billion
5	WiseTech Global Ltd (ASX: WTC)	$10.36 billion
6	Computershare Ltd (ASX: CPU)	$7.61 billion
7	Nextdc Ltd (ASX: NXT)	$5.51 billion
8	Carsales.Com Ltd (ASX: CAR)	$5.36 billion
9	Pro Medicus Limited (ASX: PME)	$4.67 billion
10	Altium Limited (ASX: ALU)	$3.82 billion

How have All Technology Index shares performed? 

A number of these names have seen dramatic share price increases over the past year, contributing to the stellar performance on the All Technology Index.

At the time of writing, Afterpay is up 274% over the past year, while REA Group is up 36% and Xero is up 44%. These share price rises have followed impressive performances by these leading ASX technology shares — Afterpay has seen customer numbers nearly double since the All Technology Index debuted. REA Group grew net profit by 13% in the first half of FY21 with the continued recovery in Australian property markets likely to support second half performance. Xero reported a 19% increase in subscriber numbers in its most recent half-year results. 

But it hasn’t all been good news for All Technology Index shares. The index also includes shares such as Webjet Limited (ASX: WEB) and Iress Ltd (ASX: IRE). The Webjet share price is down 46% over the past year as travel bans continue to weigh on the business. The Iress share price is down 28% over the same period with COVID-19 impacting on the timing of projects and revenues relatively flat in the most recent financial reports.

EML Payments Ltd (ASX: EML) has also seen its share price fall over the past year, down 10.7%. The payment solutions provider, which reported largely positive half-year results this week, is one of the most shorted shares on the ASX. 

How is the All Technology Index designed? 

To fully capture the scope of ASX technology businesses, the All Technology Index goes beyond the GICS information technology sector to include other innovative technology related industries. These include healthcare technologies (such as that provided by Pro Medicus) and companies operating online marketplaces that are classified in other GICS sectors.

There is no cap on the number of ASX shares that can be included in the All Technology Index — entrants just need to meet the entry criteria. These criteria cover the percentage of free float shares, market capitalisation, relative liquidity, and minimum daily volume traded. The Index is rebalanced quarterly, with the most recent rebalance occuring in December. 

New additions to the All Technology Index 

In the December rebalance a host of new ASX technology shares were added to the Index. These included Pointerra Limited (ASX: 3DP), 4Dmedical Limited (ASX: 4DX), Bidenergy Limited (ASX: BID), Damstra Holdings Limited (ASX: DTC), Frontier Digital Ventures Limited (ASX: FDV), Family Zone Cyber Safety Limited (ASX: FZO), Harvest Technology Group Ltd (ASX: HTG), Laybuy Group Holdings Limited (ASX: LBY), Marley Spoon Ag (ASX: MMM), Over the Wire Holdings Limited (ASX: OTW), Tesserent Limited (ASX: TNT), Weebit Nano Ltd (ASX: WBT), and Yojeee Limited (ASX: YOJ)

In the preceding September rebalance, Brainchip Holdings Ltd (ASX: BRN), Dicker Data Limited (ASX: DDR), Envirosuite Limited (ASX: EVS), Mach7 Technologies Limited (ASX: M7T), Novonix Limited (ASX: NVX), Splitit Payments Ltd (ASX: SPT), Sezzle Inc (ASX: SZL), and Whispir Limited (ASX: WSP) were added to the index. 

Why do investors choose the All Technology Index? 

The All Technology Index offers a number of benefits for investors. Firstly, it is broader than the previously existing S&P/ASX 200 Information Technology Index, which only includes technology companies in the ASX 200. This means the All Technology Index can provide exposure to smaller businesses that may have greater room for growth.

The index also reaches beyond the GICS information technology sector to include innovative technology based companies included in other sectors. This allows for the inclusion of healthcare technology companies such as Pro Medicus and PainCheck Ltd (ASX: PCK), as well as online marketplaces such as Kogan.com Ltd (ASX: KGN).

What’s next for the All Technology Index? 

The All Technology Index had a shaky start, launching just as the COVID-19 pandemic took hold. But it has proved its resilience over the past year, significantly outperforming the S&P/ASX 200 Index (ASX: XJO). Since its launch, the All Technology Index has gained more than 50%, led by companies such as Afterpay and Kogan. Over the same period, the S&P/ASX 200 is down 1.2%.

The All Technology Index is next due to be rebalanced in March, at which point we may see the number of ASX technology shares included in it increase further. This will provide additional diversification for investors in the index while also providing additional exposure for the companies included in the index.

Whether the All Technology Index can repeat its first year’s performance in its second year remains to be seen, but investors will be keeping their fingers crossed. 

More reading

• Top brokers name 3 ASX shares to buy today
• What’s with the Afterpay (ASX:APT) share price fall today?
• Why Coles, Netwealth, Pro Medicus, & Zip shares are sinking
• ASX 200 down 0.5%: Domino’s delivers, Westpac impresses, Coles sinks
• Why Domino’s, EML Payments, Redbubble, & Westpac shares are storming higher

Kate O’Brien owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Damstra Holdings Ltd, EML Payments, Frontier Digital Ventures Ltd, MACH7 FPO, Pro Medicus Ltd., and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd, Over The Wire Holdings Ltd, and Pointerra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium and Sezzle Inc. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, WiseTech Global, and Xero. The Motley Fool Australia has recommended carsales.com Limited, Damstra Holdings Ltd, EML Payments, Frontier Digital Ventures Ltd, IRESS Limited, Kogan.com ltd, MACH7 FPO, Over The Wire Holdings Ltd, Pointerra Limited, Pro Medicus Ltd., REA Group Limited, SEEK Limited, Sezzle Inc, and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post One year on and 50% up, the All Technology Index is booming appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3jVs9GW

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Altium Limited (ASX: ALU)

Analysts at Citi have upgraded this electronic design software company’s shares to a buy rating with an improved price target of $33.50. According to the note, while the broker sees risks to the company achieving its full year guidance, it believes COVID-19 headwinds are easing and demand is improving. It expects this to result in an acceleration in its earnings growth in FY 2022. Citi also believes recent weakness has left its shares trading at an attractive level. The Altium share price is trading at $28.98 today.

Breville Group Ltd (ASX: BRG)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and increased the price target on this appliance manufacturer’s shares to $35.00. The broker notes that Breville delivered a first half result ahead of its expectations. Looking ahead, Morgan Stanley believes that Breville’s guidance for the full year is conservative and expects it to outperform it. Especially given the strong demand for kitchen appliances. The Breville share price is trading at $30.81 this afternoon.

ELMO Software Ltd (ASX: ELO)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $9.70 price target on this human resources and payroll platform provider’s shares. This follows the release of its half year results, which were largely pre-released in January. Looking ahead, the broker believes that ELMO is well-placed to achieve the top end of its annualised recurring revenue (ARR) guidance range. The ELMO share price is fetching $6.11 on Wednesday.

More reading

• One year on and 50% up, the All Technology Index is booming
• The latest ASX shares upgraded by brokers to “buy” during the reporting season
• 3 things you might have missed from the Altium (ASX:ALU) half year result
• Here’s why the ELMO (ASX:ELO) share price is surging 6% higher today
• Why the Breville (ASX:BRG) share price is charging 7% higher 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 and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3s3lpKi

The Avita Medical Inc (ASX: AVH) share price has stayed in the red today since the company announced its half-year results this morning.

At the time of writing, shares in the regenerative medicine company are down 2.66% at a price of $6.23.

A look at the half-year results

For the half-year ending 31 December 2020, Avita Medical reported a substantial revenue increase from the sale of its goods. Revenue rose to $10.16 million up 56% from the previous corresponding period. However, despite the positive returns, net loss also expanded. The company posted a net loss of $15.87 million, which was up 13% from the first half of FY20.

The widening loss may be weighing on investors’ minds this afternoon as the stock is being sold off. But while shareholders will be regretting the fall, shorters of the stock will be pleased as the company continues its troubled run. Avita Medical remains the eighth most shorted stock on the ASX this week.

Moreover, the company reported a disappointing quarterly report last week, which saw its share price slide 11%. In the report, the company announced a strong cash balance of $59.8 million.

Critically it did not provide guidance to the market due to the prevailing uncertainty stemming from the coronavirus pandemic. The small-cap health share advised that its accounts were highly susceptible to the impacts of COVID-19 because its revenue came predominantly from 20 physicians.

About the Avita Medical share price

Avita Medical is a regenerative medicine company based in the United States. The company’s main offering is Recell, a spray-on treatment used for burn victims. Avita currently boasts a market capitalisation of $136 million.

The Avita share price has had a torrid time of late and is down 63% on the same time last year. The share has not fully recovered from the impacts of COVID-19 and remains some way off its 52-week high of $9.11.

More reading

• How do Avita Medical (ASX:AVH) shares stack up against Polynovo and Aroa Biosurgery?
• These are the 10 most shorted shares on the ASX
• Why AVITA, Baby Bunting, Kathmandu, & Webjet shares are sinking
• The AVITA Medical (ASX: AVH) share price plummets almost 6% in early trade
• Here are the 10 most shorted shares on the ASX

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. 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 Avita Medical (ASX:AVH) share price is slipping lower today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qF0sok

The Crown Resorts Ltd (ASX: CWN) share price will be under renewed interest from investors today. The company has garnered further attention after releasing new updates to the market. At the time of writing, the Crown share price was down 0.6% to $9.70.

Crown to resume operations in Melbourne

Crown’s most recent update informed investors that the company will resume operations at its Melbourne casino precinct from midnight tonight. The news follows the Victorian government rolling back restrictions following a snap, 5-day lockdown announced on the 12 February.

Despite relaxed restrictions, Crown’s gaming operations will have limitations. The company’s gaming floor is limited to 50% of maximum capacity. Similarly, each indoor space will be limited to 300 patrons.

Response to the WA independent inquiry

Earlier today Crown also provided a response to an independent inquiry initiated by the Western Australia (WA) government.

An urgent meeting of WA’s Gaming and Wagering Commission concluded that an independent inquiry be undertaken. The intention of this was to assess Crown’s suitability to hold the state’s only casino licence. According to the Commission, they are taking measures to ensure that the inquiry has the powers of a Royal Commission.

In a statement released earlier today, Crown noted that the company would “fully cooperate” with the inquiry and would “continue to engage with the WA Commission in relation to its reform agenda and any further remedial steps”.

What is driving interest in the Crown share price?

The Crown share price has faced scrutiny from investors following a scathing report from Commissioner Patricia Bergin. The report follows a public inquiry into the company, which uncovered allegations of money laundering.

Highlighting issues, the Bergin report deemed Crown unsuitable to operate a new Sydney casino at Barangaroo. Additionally, determining through an 800-page report that Crown needs to make sweeping cultural changes if it wants to be considered a suitable operator in the future.

The fallout continued, with Crown’s Chief Executive Officer and Managing Director stepping down last week amid the chaos.  

How has the share price responded?

The Crown share price has had a muted response despite the chaos. At the time of writing, shares in Crown are trading relatively flat for the day.

Over the past 52 weeks, the Crown share price has tanked more than 17%, with the COVID-19 pandemic weighing heavily on the company.

More reading

• Crown (ASX:CWN) loses its CEO as fallout continues
• ASX 200 falls, Melbourne lockdown bites, Baby Bunting drops
• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.5%, CBA reports, Crown deemed unsuitable for Sydney

Motley Fool contributor Nikhil Gangaram 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.

The post Why investors are watching the Crown (ASX: CWN) share price appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37lY9is

BHP Group Ltd (ASX: BHP) shares have just blasted into record territory. If the BHP share price can hold onto its 3.26% intraday gains for roughly another hour, the Australian iron ore and copper mining giant will close at new all-time highs.

BHP’s previous record high was $47.54 per share. Shares touched $49.30 in early morning trade today, before retracing some to currently trade at $48.47.

Why is the BHP share price hitting all-time highs?

After falling hard during the COVID-driven market rout last February and March, the BHP share price has come roaring back, up 92% since 16 March.

Much of the company’s success is attributable to the soaring price of iron ore and copper, the two dominant contributors to BHP’s earnings.

The iron ore price, above US$160 per tonne, remains near 8-year highs. Copper is also at 8-year highs, trading for US$8,405 per tonne.

That’s certainly spelled good news for BHP’s earnings. Yesterday the company reported its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) came in at US$14.7 billion for the half-year ending 31 December 2020. That’s an increase of 21% from the prior corresponding half.

Of that US$14.7 billion, US$13.9 billion came from its iron ore and copper segments, with iron ore generating EBITDA of US$10.2 billion and copper generating EBITDA of US$3.7 billion.

Iron ore and copper demand

While iron ore prices are widely forecast to slowly retreat over the coming years, strong demand from China’s steel factories along with increased infrastructure spending from developed nations looking to kickstart their virus-addled economies should cushion any price falls. Indeed, the iron ore price may well surprise to the upside.

According to analysts at Commonwealth Bank of Australia (ASX: CBA), as quoted by The Australian Financial Review:

China’s Two Sessions in early March will prove crucial to China’s policy objectives. If policymakers favour growth again this year, particularly through another infrastructure-led stimulus, iron ore prices will track higher than we’re forecasting. Another key support for iron ore prices this quarter will be the risk that wet weather plays on iron ore shipments from Australia and Brazil.

Copper demand is also predicted to remain strong, with JPMorgan analysts forecasting a new commodities supercycle is taking form. One that will support copper prices as the world increasingly shifts towards battery storage for power and electric vehicles for transport.

How that all plays out remains to be seen.

But for today, the record high BHP share price will be pleasant news to the company’s shareholders.

More reading

• 2 of the best ASX dividend shares to buy right now
• Here’s why the BHP (ASX:BHP) share price is closing in on its record high
• ASX 200 rises 0.7%, Redbubble sinks, BHP dividend jumps
• 2 ASX dividend shares rated as buys by brokers
• ASX 200 up 0.5%: BHP impresses, NAB rises, Zip rockets

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 Why the BHP (ASX:BHP) share price just blasted into record territory appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3dxwpeX

The Afterpay Ltd (ASX: APT) share price is falling in trade today, currently down 3.3% at $148.38. This is despite the recent buy now, pay later (BNPL) excitement in other shares including Zip Co Ltd (ASX: Z1P), Fatfish Group Ltd (ASX: FFG), and IOUpay Ltd (ASX: IOU).

With no news from the company today, we look at what other forces might be at play.

Catalysts for today’s Afterpay share price selling

Could recent run-ups in BNPL competitors stem from an interest in finding the next big player? Particularly in cases like Fatfish and IOUpay, as they target new developing markets for the sector in Southeast Asia. The potential returns from investing at an early stage might have Afterpay shareholders taking profit and reallocating to these opportunities.

Alternatively, the case could be made that the tech sector is looking a bit frothy. Technology shares have outperformed through COVID-19 and the global market rebound.

Many investors found solace in companies with limited exposure to physical forms of business – in addition to the large role technology had in handling the events of the pandemic. However, some may perceive evaluations as stretched at this point, even when accounting for growth.

This perception of overvalued in many tech shares, including Afterpay, might lead investors to turn to value investing. That means blue-chip shares that look undervalued based on their earnings, often reflected in the price-to-earnings (P/E) ratio.

Is the growth engine still chugging along?

In a short timeframe of nearly 4 years, Afterpay has managed to grow like wildflowers. Merchants, customers, revenue – all the metrics have been humming along like a fine-tuned engine. For instance, revenue has rocketed from $22.906 million in 2017 to $476.555 million in 2020.

However, 2021 is a world away from 2017. Indeed, Afterpay now has countless contenders all wanting a piece of the BNPL pie. This might have investors nervous considering the company still hasn’t turned a profit. The question weighing on the minds of some is, how much profit will be in it, given the saturation of competitors?

Afyterpay’s recent sales in the United States indicate strong sales are still occurring for the company. The announcement posted on 2 December 2020 highlighted the company exceeding $2 billion of global sales in a single month. Furthermore, the US made up $1 billion of these sales, increasing 186% from the prior year.

The growth story will be clarified on 25 February, when the company is slated to release its half-year results for FY21.

More reading

• What’s going on with the IOUpay (ASX:IOU) share price?
• Why the Zip (ASX:Z1P) share price is crashing 19% lower today
• Why the Fatfish (ASX:FFG) share price is diving 21% today
• Why Coles, Netwealth, Pro Medicus, & Zip shares are sinking
• ASX 200 down 0.5%: Domino’s delivers, Westpac impresses, Coles sinks

Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What’s with the Afterpay (ASX:APT) share price fall today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qujmOH

The Betmakers Technology Group Ltd (ASX: BET) share price is up around 15%. It has announced a partnership with Matt Tripp.

Betmakers is currently engaged with a number of parties to leverage the company’s technology and data platform and is looking forward to his assistance with those initiatives. The company is looking at potential opportunities in the US.

What is happening with Betmakers?

Betmakers Technology has contracted Mr Tripp to be a strategic advisor to the company where he will pursue ‘strategic deals’ and ‘transformational deals’ for Betmakers. Mr Tripp will be looking for opportunities in both Australia and internationally.

In per-share terms, strategic deals will be counted as ones that increase the company’s revenue by more than 10% on a pro forma basis and transformational deals will be counted as ones that increase revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) by more than 100% on pro forma basis. Mr Tripp will be rewarded with unquoted performance rights if he’s successful at bringing in strategic deals, as well as unquoted options and performance rights for transformational deals.

Mr Tripp has agreed to provide business to business wagering service opportunities exclusively to Betmakers.  

The execution of any deals will ultimately be up to the board.

Strategic placement

Subject to shareholder approval, Mr Tripp will also invest $25 million at a Bookmakers share price of $0.70 – almost 30% lower than the current price, though Betmakers said it was a 1.6% discount to the 15-day average share price.

Betmakers has also received firm commitments of $50 million from several existing, supportive institutions.

All of these funds will be used to accelerate growth, specifically for pursuing and executing strategic opportunities. After competing the capital raising and the transaction with Sportech, the company will have approximately $110 million in cash on hand.

Matt Tripp’s positive comments

Mr Tripp said:

BetMakers has cemented itself with a compelling proposition in the global racing wagering market. They have built a formidable team with a highly trusted brand and established a global footprint with a large customer base. I am delighted to invest into the company and take on a role to assist in growing the business at scale globally. I see clear opportunities to support that growth through inorganic and organic deals both in Australia and internationally.

CEO signs on for another 3 years

Betmakers also announced that the CEO, Todd Buckingham, will remain as the CEO until 30 June 2024 after signing a new 3-year commitment.

The chair of Betmakers, Nick Chan, spoke of the positive contribution that Mr Buckingham has had for the company:

Todd has delivered outstanding growth and opportunity for the company through his leadership and vision and the board is delighted to have secured his commitment under agreeable terms going forward.

More reading

• Betmakers (ASX:BET) share price jumps 9% to touch 52-week high

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group Ltd. 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 Betmakers (ASX:BET) share price is soaring appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3biTEGS

The LiveTiles Ltd (ASX: LVT) share price is rocketing in mid-afternoon trade. This comes after the company announced it has signed a record multi-million deal with a Fortune 100 company.  At the time of writing, the LiveTiles share price is up an astonishing 16% to 30 cents.

What’s driving the LiveTiles share price higher?

The LiveTiles share price is one of the best performers today after reporting a significant contract win.

According to its release, LiveTiles entered a three-year multi-million agreement with a United States-based Fortune 100 healthcare company. The deal, effective immediately, will see LiveTiles deliver its broad suite of products including its mobile communications application, LiveTiles Reach.

The company credited this to its established products, compared to custom-built platforms. This is because it is readily available to assist in employee collaboration and communication.

LiveTiles revealed that the contract was closed much quicker than the average sales cycle for enterprise deals. A catalyst for this could be that the healthcare system is overwhelmed by COVID-19. Particularly in terms of patient volume, risk management, and work-from-home for non-essential staff.

This is the second major win in recent months for the company. Previously, LiveTiles secured a record licensing deal with a United States-based apparel retailer. The multi-year, multi-million contract was signed to support the high-profile global apparel retailer with its COVID-19 re-opening strategy.

Growth market

Since the beginning of 2021, LiveTiles has witnessed strong tailwinds as a result of the digital transition from Senior Executives. It noted that companies are buying software packages to enhance their employee experience platforms. In turn, it is hoped that this will drive business growth. Notably, it is estimated that the market for solutions that promote corporate culture, knowledge discovery, and on-the-job learning is around US$300 billion per annum.

In the announcement, Gartner, a leading technology researcher, stated that global healthcare IT spending is forecasted to recover this year. By 2024, the sector alone is projected to reach US$169.5 billion.

Furthermore, enterprise software is anticipated to lead the rebound in IT spending in 2021. An annual growth is predicted at 8.8% to US$505 billion.

What did management say?

LiveTiles Co-founder and CEO Karl Redenbach welcomed the milestone contract, saying:

To sign another record deal for the second time in less than four months is a real thrill. To do so with LiveTiles Reach being a key part of the deal, is further validation of our product diversification strategy and gives us confidence for the year ahead. It’s also further validation of the growing Employee Experience Platform product category that LiveTiles has helped pioneer.

LiveTiles president Daniel Diefendorf went on to add:

Digital Transformation and employee experience in a post COVID-19 world is no longer a nice to have. Large enterprises are making the necessary investments to help their teams be more effective, but also connect in meaningful ways with their employees no matter where they work from. This win brings together the best of a forward-looking customer and the LiveTiles’ Employee Experience Platform to serve hundreds of thousands of employees.

Despite today’s meteoric rise, the LiveTiles share price is down 14% over the last 12 months.

Based on the current share price, the company commands a market capitalisation of around $261 million.

More reading

• Why Cann, Creso, LiveTiles, & New Corp shares are tumbling lower today
• Why the LiveTiles (ASX:LVT) share price is surging 17% higher today
• LiveTiles (ASX:LVT) shares placed in trading halt
• Why Bigtincan, Bubs, LiveTiles, & Treasury Wine shares are storming higher
• Why the LiveTiles (ASX:LVT) share price is avoiding the market selloff

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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 the LiveTiles (ASX:LVT) share price is rocketing 20% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Zr55GA

The IOUpay Ltd (ASX: IOU) share price may be in a trading halt but that hasn’t stopped the company making announcements.

This afternoon the Malaysia-based buy now pay later (BNPL) provider responded to an ASX aware query.

Why is the IOUpay share price in a trading halt?

IOUpay requested a trading halt on Tuesday so that it could undertake its second capital raising in a little over three months.

As things stand, no details have been provided in respect to how much the company is aiming to raise and for what purpose. Based on what management has said today, it appears to be an opportunistic capital raising to take advantage of the recent surge in the IOUpay share price.

And what good timing, too! Had the IOUpay share price not been in a trading halt today, it would almost certainly have been sinking along with fellow BNPL shares Sezzle Inc (ASX: SZL) and Zip Co Ltd (ASX: Z1P) today.

At the time of writing, the Sezzle share price is down 11% and the Zip share price is down 12%.

What was today’s announcement?

Earlier today the ASX Ltd (ASX: ASX) contacted IOUpay to quiz it on its capital raising.

The stock exchange operator notes that it contacted the company initially on Monday to ask if there were a reason for the spike in the IOUpay share price. The company responded by saying there was nothing that it was aware of.

Whereas the very next morning its capital raising was announced, which caught the eye of the ASX.

IOUpay has provided its explanation for how everything unfolded, which appears to have appeased the ASX.

“To set out the relevant chronology, IOU notes that it received a letter from the ASX titled “Price – Query” on 15 February 2021, to which the Company responded by way of letter on the same day, with that response being released to market by the ASX at 1.03 pm that day (the ‘Price Query Response’).”

“Later in the afternoon of 15 February 2021, after the release to market of the Price Query Response, IOU received an unsolicited proposal to conduct a capital raising. This proposal was not considered by the Board until an emergency meeting of the Board was convened in the late afternoon of 15 February 2021, after market close. The time of the meeting was as soon as practicable at short notice given the relative locations and time zones of some Board members. At this meeting, the Board agreed to accept the proposal to conduct a capital raising and finalise the terms on which it would seek do so over that evening and prior to commencement of trade 16 February 2021.”

“Accordingly, it was not until after market close on 15 February 2021 that IOU had become aware that it was ‘considering capital raising initiatives and opportunities’ to the extent that would require disclosure to the ASX under Listing Rule 3.1.”

“For the avoidance of doubt, IOU confirms that at both the time at which IOU sent the Price Query Response to the ASX and at the time of its release to market by the ASX, IOU was not in possession of any information which would warrant disclosure under Listing Rule 3.1 with respect to any capital raising initiatives and opportunities.”

More reading

• Payright (ASX:PYR) shares get speeding ticket after 32% surge
• The Cirralto (ASX:CRO) share price is hitting 52-week highs today
• Why the IOUpay (ASX:IOU) share price is halted again today
• The Novatti (ASX:NOV) share price rocketed 38% today
• Why the Sezzle (ASX:SZL) share price is charging 7% higher 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 ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What’s going on with the IOUpay (ASX:IOU) share price? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3jU7tiC