Tag: Motley Fool

It was a positive day for the Telstra Corporation Ltd (ASX: TLS) share price on Monday.

The telco giant’s shares finished the day over 2% higher at $3.32.

This means the Telstra share price is now up 4.5% since the release of its half year results last week.

Three reasons the Telstra share price is climbing higher

The first reason the Telstra share price is pushing higher is its dividend.

Although there had been a number of hints that the company would maintain its dividend this year, some investors appeared to doubt this. Which is understandable given the downward trajectory its dividend has taken in recent years.

However, last week Telstra maintained its fully franked interim dividend at 8 cents per share and reiterated plans to do the same with its final dividend. This will mean a fully franked 16 cents per share dividend, which equates to a 4.8% yield.

The second reason

A second reason the Telstra share price is ascending is its positive outlook.

After years of earnings declines caused largely by the NBN rollout, the company is now setting itself growth targets once again.

CEO Andy Penn appears confident that the company is positioned to return to growth in FY 2022. He said: “I am confident the many initiatives we have taken under our T22 program, particularly in simplifying the business and the digitisation program, will further improve customer experience.”

“To get the real benefits from all the effort we’ve already made, Telstra needs to be bold. I’ve set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused,” he added.

The third reason

A third reason for the solid performance by the Telstra share price is the positive response to its results by brokers.

For example, analysts at Goldman Sachs retained their buy rating and lifted their price target on Telstra’s shares to $4.00.

Elsewhere, UBS retained its buy rating and $3.70 price target and Credit Suisse held firm with its outperform rating and $3.85 price target.

It is also worth noting that analysts at Macquarie briefly put an outperform rating and $4.00 price target on its shares before suspending coverage due to research restrictions. The broker is helping Telstra with its TowerCo sell-down.

More reading

• Morgan Stanley: ASX earnings season is topping expectations
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• Top brokers name 3 ASX shares to buy next week
• 2 standout ASX results from last week
• How to generate $50,000 a year from ASX dividends

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 3 reasons the Telstra (ASX:TLS) share price is storming higher appeared first on The Motley Fool Australia.

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

Wow.

It’s not every day that a category-killing retailer that’s been at the top of its game for more than a decade grows half-yearly profits by 80%!

Then again, 2020 wasn’t exactly an ordinary year.

And the profit growth for June–December was actually 86.2% if you don’t mind, off the back of a 23.7% increase in sales.

Online sales grew a phenomenal 162%.

And the share price?

At the time of writing, it was up 0.22%.

No, not 22%

Not 2.2%

Zero. Point. Two. Two. Per Cent.

The reason? Well, JB Hi-Fi Limited (ASX: JBH) had released its sales numbers in mid-January.

And, short of an unexpected splurge in expenses, the market was right to extrapolate that strong sales growth into an even stronger jump in profits.

Still, I was a little surprised JB Hi-Fi shares didn’t move higher, given the company boosted its dividend by 81%.

To be fair, valuations are tough to calculate right now.

Companies are (thankfully) not giving guidance, because of the COVID uncertainty.

They’ll soon start to cycle on the beginnings of the COVID crisis, as we begin to compare February 2021 to February 2020, then March, April and so on.

Who knows what further lockdowns we might face?

How quickly we’re vaccinated, what variants we might face, and how long it takes until the country is effectively fully immunised?

How our consumer behaviours will – and won’t – change?

Moreover, for those retailers selling non-consumable products, how many more televisions, fridges, freezers and sofas can we actually buy?

Which is not to say I’ve turned bearish on those retailers’ businesses.

Yes, many of us will go back to the stores in larger numbers in 2021 than we did in 2020.

But many of us will continue to buy online, impressed with the ease, speed and convenience (and often cheaper prices).

That very uncertainty means there are a wide range of business outcomes for JB Hi-Fi and its ilk over the next 12–18 months.

And with it will likely come meaningful share price volatility as investors try to work out how much to pay for them.

The good news is that they don’t seem to be getting too carried away, today.

But what happens if (when?) these big retailers turn in slow growth or even sales declines in May, June or July?

It’s far from impossible; if your sales grew 20, 50 or 100% (as they did for some online retailers) last year, even if growth was flat this year, that’d be a helluva two-year jump.

And, as I wrote above, if you got your fill of new computers, desks and work-from-home supplies last year, you’re probably not going to be replacing it all in 2021.

Meaning that sales declines are in some cases, likely, and in almost all cases, possible. 

Which, of course, the market should expect, and so it should take any such news in its stride.

Right?

Well, as I said, it should.

That doesn’t mean it will.

The problem is that, right now, we don’t know.

I own shares in some retail companies. I’m not selling any, and don’t have plans to (though, as ever, I reserve the right to, if circumstances change, and only in accordance with our staff trading policy if I do!).

I might even buy more shares in retail if the opportunity arises.

So this isn’t a warning or a suggestion to sell.

But it is a warning that I would be gobsmacked if share prices of COVID-beneficiaries aren’t more volatile than usual in 2021.

Volatility is, as I always like to say, the ‘ticket to the dance’.

It is to be endured because it can’t be avoided, but history suggests it’s worth putting up with for the returns that might just be on offer for share market investors.

As ever, knowing what you own, and why you own it, will stand you in good stead.

As will knowing that volatility will strike, often when you least expect it, and having a plan for how you’ll deal with it.

My tip: get used to the idea now so that, when it comes, you can shrug, curse it, but avoid doing anything silly.

Remember, investing should be long-term in nature. Think not about May, or even 2021.

Think about how your companies will be performing in 2024, 2026 and beyond…

Fool on!

More reading

• How JB HiFi (ASX:JBH) shares became an ASX dividend powerhouse
• JB Hi-Fi (ASX:JBH) share price on watch after bumper profit and dividend growth
• What to expect from the JB Hi-Fi (ASX:JBH) half year result
• ASX retail shares show strong signs of resurgence 
• Here’s a bargain ASX share in a sea of expensive stocks

Motley Fool contributor Scott Phillips 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 What does the market look like when things go back to normal? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3amj470

JB Hi-Fi Limited (ASX: JBH) shares had a great day today, rising 2.69% by the market’s close to a price of $52.36. That doesn’t quite put the JB share price near its 52-week (and all-time) high of $55.25, but it’s not far off.

JB shares have been rewarding their owners very handsomely over the past few months. The JB Hi-Fi share price is up more than 22% since 8 December, and up 26.5% over the past 12 months.

Today’s share price moves come after the company released its half-year results this morning for the 6 months to 31 December 2020.

It was a pleasing result for the company. As we covered this morning, JB recorded a 23.7% rise in total sales to $4.9 billion. Earnings before interest and tax (EBIT) were up 76% to $462.8 million and net profits after tax were up 86.2% to $317.7 million. Earnings per share (EPS) also increased by 86.2% to $2.77.

But perhaps the biggest piece of news this morning was JB’s dividend. The company’s management announced that JB will pay an interim dividend of $1.80 per share, fully franked, to be paid on 12 March. That’s a whopping 81.8% increase over last year’s interim dividend of 99 cents per share.

According to the earnings report, that represents a net profit payout ratio of 65%. If we annualise this dividend, it would equate to a yield of roughly 6.9% (or 9.8% grossed-up with the full franking) on the current JB share price.

JB shares deliver the dividend goods

This represents incredible growth for JB’s dividends. Five years ago, the company’s interim shareholder payout was just 72 cents per share, meaning it has grown at a compound annual growth rate (CAGR) of 20.11%.

However, keep in mind that JB’s interim dividends usually come in larger than its final dividends, likely reflecting the strength of the Christmas period for the company. Even so, disregarding this new interim payment, JB’s annual dividends grew from $1 per share in 2016 to $1.89 per share in 2020. That’s a CAGR of 17.25% over those four years.

Many believe that paying out dividends weakens a company because it leaves less money available to reinvest back into the business. Thus, for a company to fund a fast-growing dividend as well as continuing to deliver on key growth metrics, its fundamentals usually need to be rock solid. And JB’s arguably are.

The EPS metric of $2.77 per share that JB gave investors this morning is considerably higher than the EPS of $1.16 it reported back in 2017. That represents a CAGR of 18.97%. So the fact that JB has been managing to grow its EPS by such a fat rate is probably why JB shares continue being able to bring home the bacon for their dividend investors.

More reading

• JB Hi-Fi (ASX:JBH) share price on watch after bumper profit and dividend growth
• What to expect from the JB Hi-Fi (ASX:JBH) half year result
• ASX retail shares show strong signs of resurgence 
• Here’s a bargain ASX share in a sea of expensive stocks
• 2 ASX dividend shares with yields above 5%

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.

The post How JB HiFi (ASX:JBH) shares became an ASX dividend powerhouse appeared first on The Motley Fool Australia.

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

There are a handful of ASX shares that multiple brokers have a high opinion of and believe could generate good returns.

All analysts may have different thoughts and opinions on different businesses. One broker could think Commonwealth Bank of Australia (ASX: CBA) is the best bank to buy, whilst another broker could think CBA is a sell and that Westpac Banking Corp (ASX: WBC) is the one to buy.

However, if multiple brokers think that the same ASX share is a buy then it could be a good starting point for thinking about a business.

With that in mind, here are two ASX shares from the travel industry that multiple brokers like:

Corporate Travel Management Ltd (ASX: CTD)

This ASX share is liked by at least six brokers.

One of the brokers that likes Corporate Travel at the moment is Credit Suisse. Whilst it’s still expecting 2021 to be a COVID-19-affected year, 2022 may deliver materially better revenue as high levels of demand is satisfied, profitability remains high because of a lower cost base and the company takes market share.

The broker also noted that the Corporate Travel Management share price has fallen since the end of November. There has been a 16% decline since 25 November 2020.

At the end of September 2020, Corporate Travel Management announced the acquisition of Travel & Transport, which is a North American corporate travel business. It had US$2.8 billion of total transaction value (TTV) in the 2019 calendar year. It also generated US$29 million of pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) in 2019. Over 60% of that TTV was made from corporate air travel, with another 30% from hotels.

The US$200.4 million acquisition was funded by the ASX share with a capital raising. Based on a pro-forma 2019 figures, Corporate Travel expects the acquisition to be 10% accretive for earnings per share (EPS) excluding synergies, and 30% accretive including synergies.  

Credit Suisse has a price target of $22 for Corporate Travel Management shares.

Alliance Aviation Services Ltd (ASX: AQZ)

Alliance Aviation Services is liked by at least three brokers.

The company describes itself as Australasia’s leading provider of contract, charter and allied aviation and maintenance services. Its main clients are in the mining, energy, tourism and government sectors. It currently operates a few dozen Fokker aircraft and has also acquired 30 E190 jet aircraft over the last year. Those acquisitions are intended to be progressively added to the fleet throughout 2021 and 2022 to provide the company with growth capacity.

Broker Morgans points to the record interim FY21 result for Alliance Aviation and strong operating cashflow as reasons to be positive on the business. Alliance’s management believe further growth can come and that belief is supported by the Qantas Airways Limited (ASX: QAN) wet lease agreement that was recently signed.

After the result, which saw underlying profit before tax rise 72.3% to $26.7 million and operating cashflow rise 225.3% to $47.5 million, Morgans increased its underlying net profit before tax estimate for FY21 by 10%.

Morgans has a share price target for Alliance Aviation of $5.25.

More reading

• Leading brokers name 3 ASX shares to buy today
• Why ASX travel shares were smashed on Friday
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• Why the Alliance Aviation (ASX:AQZ) share price is up 67% in 12 months
• Here’s a bargain ASX share in a sea of expensive stocks

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX shares brokers expect to fly higher appeared first on The Motley Fool Australia.

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

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Alliance Aviation Services Ltd (ASX: AQZ)

According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted their price target on this aviation services company’s shares to $5.15. The broker was pleased with the company’s half year results and notes that its profit came in a touch higher than expected. Ord Minnett was also impressed with its cash flows. Looking ahead, the broker believes the company is well-placed to benefit from a shift to contract and charter based services in the domestic market. The Alliance Aviation share price is trading at $4.27 today.

Baby Bunting Group Ltd (ASX: BBN)

A note out of Morgans reveals that its analysts have upgraded this baby products retailer’s shares to an add rating with an improved price target of $6.39. According to the note, the broker made the move following the release of its first half result last week. Although its margin expansion, and therefore its profit growth, was a little softer than the broker forecast, it was pleased with many aspects of its update. One of those was its expansion into New Zealand. It feels this gives its already positive growth outlook an added boost. The Baby Bunting share price is fetching $5.76 today.

Mirvac Group (ASX: MGR)

Analysts at Macquarie have retained their outperform rating but cut the price target on this property company’s shares slightly to $2.84. According to the note, Mirvac delivered a stronger than expected first half result and its guidance for the full year was in line with its estimates. Looking further ahead, the broker believes Mirvac can grow its earnings over the coming years thanks to a number of new developments. The Mirvac share price is trading at $2.30 on Monday.

More reading

• ASX 200 falls, Melbourne lockdown bites, Baby Bunting drops
• Why AVITA, Baby Bunting, Kathmandu, & Webjet shares are sinking
• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• Mirvac (ASX:MGR) share price slides on half-year results
• Why the Baby Bunting (ASX:BBN) share price is tumbling 10% lower

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.

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

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

You may have heard of the commodity super cycle potentially taking shape on our doorstep.

These types of super cycles don’t occur frequently. In fact, over the past century there have been only 5. The last one ground to an end as global liquidity dried up amid the GFC.

Now, with commodities having largely been in the doldrums for the past decade, analysts are increasingly forecasting that a new commodity super cycle is taking shape. Or may already be underway.

Chris Watling is the chief market strategist and founder of Longview Economics. According to Watling (quoted by the Australian Financial Review):

Commodity super cycles tend to occur after periods of loose central bank policy and run for about a decade. Commodities peaked relative to equities a decade ago and now they are very cheap and below their levels seen in 1969 and 1998 before prior super cycles began.

Will ASX silver shares get swept up in the commodity super cycle?

In case you haven’t noticed, silver prices have been going ballistic lately.

How ballistic?

On 1 February silver was trading at for US$29.15 (A$37.37) per troy ounce. That’s right on 5-year highs. And it’s up an impressive 143% from the US$11.98 per ounce it was worth on 18 March last year.

Yes, the price of silver has retraced a touch since the first of this month, currently at US$27.61 per ounce. But that’s still within touching distance of multi-year highs.

And a large part of that recent price retrace is likely due to a retreat of long positions from the Reddit army. On 1 February rumours were still circulating on Reddit’s WallStreetBets that silver could hit US$1,000 per ounce following the retail hordes efforts at a short squeeze on the precious metal.

While that didn’t eventuate, if the commodity super cycle takes shape in this era of ultra-loose central bank monetary policy, ASX silver shares could be well positioned to benefit.

Two leading ASX silver shares

There are a number of quality silver shares trading on the ASX.

Two of the larger silver miners and producers are Silver Mines Limited (ASX: SVL) and South32 Ltd (ASX: S32).

South32 has a market cap of $12.4 billion and pays a dividend yield of 1.2%, fully franked. Over the past 12 months, the South32 share price is flat. Year-to-date the share price is up 4%.

Silver Mines has a market cap of $286 million and does not pay a dividend at this time. Over the past 12 months, the Silver Mines share price is up 170%. In 2021, its shares are up 4%.

More reading

• Why the Silver Mines (ASX:SVL) share price is sinking today
• Afterpay and Zip were among the most traded ASX shares last week
• Why ASX miners will get a double tailwind from Biden’s US$1.9tn stimulus
• Why BHP, Estia Health, HUB24, & South32 shares are dropping lower
• ASX 200 up 1.1%: Amcor jumps, South32 sinks, Virgin Money UK 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 Will ASX silver shares ride the commodity super cycle to new highs? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qq70ak

The Field Solutions Holdings Ltd (ASX: FSG) share price is rising in late afternoon trade. This comes after the company announced it had secured 5G spectrum for rural, regional and remote parts of Australia.

The telecommunications carrier and technology company provides connectivity for rural, regional and remote areas. It builds fixed wireless networks, employing technologies such as fibre and fixed wireless spectrum.

After reaching a multi-year high of 8.2 cents in morning trade, the Field Solutions share price is trading up 7.35% at 7.3 cents, at the time of writing.

What did Field Solutions announce?

In today’s release, Field Solutions advised it has been allocated 5G millimetre wave spectrum (26GHz) to 85% of Australia’s landmass.

The company currently operates networks in New South Wales, Queensland, Tasmania, Victoria, and the Northern Territory. A recent government contract award approved Field Solutions to develop infrastructure assets in rural areas across the grain belt region. The company estimated its network would cover more than 90,000sq km by the end of the year.

The granted licences will enable Field Solutions to deploy its network in locations that don’t have 5G services. The company noted that the agricultural sector and a change in working trends were driving the increase in regional areas.

The company expects to start rolling out its 5G network within the next 6 months. Field Solutions revealed that deployment areas were based on local demand, government funding, and business strategy.

Words from the CEO

Field Solutions CEO Andrew Roberts welcomed the progress, saying:

FSG has secured 5G spectrum holdings to ensure that rural, regional and remote Australia is not left behind in the rollout of 5G services. We needed to secure this spectrum to ensure we can deploy superfast services within our target markets.

5G deepens our long-term commitment to the bush, and ensures FSG remains the leading provider of services for rural, regional and remote Australia.

Field Solutions share price review

After falling to a 52-week low of 1.8 cents in April last year, the Field Solutions share price has accelerated since. The company’s shares reached a multi-year high of 8.2 cents today, reflecting a gain of more than 300%.

Based on the current share price, Field Solutions has a market capitalisation of close to $40 million.

More reading

• Why the Field Solutions (ASX:FSG) share price is jumping 15% today
• Here’s why the Field Solutions (ASX:FSG) share price is up 20% 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 Field Solutions (ASX:FSG) share price reaches multi-year high. Here’s why appeared first on The Motley Fool Australia.

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

At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Webjet Limited (ASX: WEB) remains the most shorted share on the ASX but only just. This week the online travel agent’s short interest has fallen by 200 basis points to 12.5%. Some short sellers may have been locking in returns after a recent and sharp pullback in the Webjet share price.
• Tassal Group Limited (ASX: TGR) isn’t far behind with short interest of 12.2%. Short sellers appear to be targeting the seafood company amid concerns that China could slap duties on Australian seafood.
• Northern Star Resources Ltd (ASX: NST) has seen its short interest jump to 10.3%. It appears as though some short sellers aren’t convinced by its merger with fellow gold miner Saracen Mineral.
• Speedcast International Ltd (ASX: SDA) has short interest of 9.3%. This communications satellite technology provider’s shares have been suspended for over a year while it undertakes a recapitalisation.
• Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is flat week on week. This poultry company was a poor performer in FY 2020 due to COVID-19 headwinds and higher input costs. Short sellers don’t appear confident that FY 2021 will be much better.
• Mesoblast limited (ASX: MSB) has seen its short interest fall week on week to 8.6%. Short sellers may have been closing positions last week following the release of a positive trial update.
• Western Areas Ltd (ASX: WSA) has seen its short interest rise to 8.4%. This appears to have been driven by a disappointing first half production update and issues at its Flying Fox operation.
• AVITA Medical Inc (ASX: AVH) has seen its short interest slide week on week to 7.8%. Short sellers will have been pleased to see the medical device company’s shares tumble lower last week following the release of its second quarter update.
• Service Stream Limited (ASX: SSM) is back in the top ten with short interest of 7.3%. The essential network services company’s shares have come under pressure this year amid mixed contract updates.
• Myer Holdings Ltd (ASX: MYR) has 7.1% of its shares held short, which is down slightly week on week. There are concerns the pandemic could accelerate the structural pressures the department store operator is facing.

More reading

• Why ASX travel shares were smashed on Friday
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• 5 things to watch on the ASX 200 on Monday
• Is the Webjet (ASX:WEB) share price a buy right now?
• Why AVITA, Baby Bunting, Kathmandu, & Webjet shares are sinking

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 Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Avita Medical Limited and Service Stream Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These are the 10 most shorted shares on the ASX appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qz7sU5

Future First Technologies Ltd (ASX: FFT) shares are skyrocketing today despite being placed in a trading halt for part of Monday’s session. At the time of writing, the Future First share price has surged 26.67% higher to 9.5 cents. 

This comes despite no new announcements from the company today and an enforced trading halt pending a response to the ASX’s ‘please explain’ price query. 

So why is the Future First share price exploding?

After closing Friday’s session at 7.5 cents, the Future First share price surged 60% during early morning trade today to 12 cents. Considering these unusual price and volume fluctuations, the company was hit with a price query by the ASX mid-morning. In response, the company replied that it was unaware of any unannounced information that could be driving the Future First share price higher.

Following the company’s response, Future First shares resumed trading and rocketed again to an intraday high of 14.5 cents before retracing back to their current level.

Interestingly, last Friday Ava Risk Group Ltd (ASX: AVA) released news regarding its ‘Future Fibre Technologies’ division being awarded a substantial multi-base air force contract. Given the similarity in names, this news could possibly be responsible for today’s rise in the closely named, but completely unrelated, Future First Technologies shares.

In what could possibly be a case of mistaken identity, there’s a chance that the rocketing Future First share price is today stealing some of the kudos surrounding Ava Risk’s announcement of last week.

Company snapshot

Future First Technologies is an information, communications and technology (ICT) and digital consulting organisation with over 400 consultants. 

The Future First Technologies share price has fired up more than 200% over the past 12 months. Based on the current share price, the company has a market capitalisation of around $52 million.

More reading

• Here’s why the Ava Risk (ASX:AVA) share price is surging today
• Here’s why the Ava Risk (ASX:AVA) share price shot up 11% today

Motley Fool contributor Gretchen Kennedy 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 Is this why the Future First (ASX:FFT) share price is blasting 27% today? appeared first on The Motley Fool Australia.

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

The Betmakers Technology Group Ltd (ASX: BET) share price is up more than 9% this afternoon. Today’s gains put the Betmakers share price at 86 cents a share, a new 52-week high.

With no new announcements out of the wagering company to explain the share price jump, lets take a look at its latest quarterly announcement, released at the end of January.

How has Betmakers been performing recently?

In its second quarter FY21 activities update, Betmakers reported cash receipts for the first half of FY21 of $7.9 million, an increase of 130% on the prior corresponding period.

As of 31 December 2020, Betmakers held roughly $68.6 million worth of cash and cash equivalents. 

In its update, the company also announced that it entered into binding agreements during the quarter to acquire Sportech’s Racing and Digital assets in the United States, United Kingdom and Europe, for consideration of 30.9 million pounds.

The acquisition is intended to support Betmakers’ international growth strategy to fully capitalise on emerging opportunities in the US market, including fixed odds wagering.

The business also signed agreements to manage fixed odds wagering on all horse racing, including Jamaican and international race meetings, through Supreme Ventures Racing and Entertainment channels for five years. 

A word from the CEO

According to CEO Todd Buckingham, the company is well-positioned for growth. Commenting on the company’s Q2 FY21 results, he said:

The Q2 FY21 quarter was not only our best quarterly performance to date, but it was also the Company’s most productive and transformational in terms of international expansion. I am pleased with the consistent growth in the domestic business, with the performance for the first half of FY21 setting the company’s annualised revenue run rate in line with our expectations as we aggressively invest in efforts to pursue global opportunities.

Betmarkers share price snapshot

Betmakers is involved in the development and provision of data and analytic products for the B2B wagering market, as well as the production and distribution of racing content. The group’s revenue channels includes Australia, the United Kingdom and the United States of America.

The Betmakers share price has jumped more than 100% higher over the last 12 months, and is currently at a 52-week high.

On today’s prices, Betmakers has a market capitalisation of $547 million.

More reading

• Is this why the Future First (ASX:FFT) share price is blasting 27% today?
• Why the Fatfish (ASX:FFG) share price is up 74% today
• Digital Wine (ASX:DW8) share price flies 13% higher on partnership deal
• Here’s why the Altium (ASX:ALU) share price is down 4%
• Why the Asaleo Care (ASX:AHY) share price jumped to a 52-week high today

Gretchen Kennedy 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 Betmakers (ASX:BET) share price jumps 9% to touch 52-week high appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qq4S2k