Tag: Motley Fool

Commonwealth Bank of Australia (ASX: CBA)’s CommSec platform is renowned as one of, if not the, most popular brokerage services in the country. It enables investors to buy and sell ASX shares, as well as shares traded on international stock markets.

Given the rise of newer, ‘cooler’ brokerage services like Superhero and Stake, which offer slick, millennial-friendly interfaces, one might be forgiven for thinking that CommSec is a little too ‘old-world’ for millennial investors.

Not so, if a new report is to be believed.

The ‘Robinhood effect’

According to a report in the Australian Financial Review (AFR) today, the so-called ‘Robinhood effect’ in the US has spilled over into CommSec’s coffers. The Robinhood effect is the term used to describe the rapid increase in market participation from younger investors. It was first sparked by the popular (and free) US broker Robinhood, which is not available in Australia.

This effect has accelerated since the onset of the coronavirus pandemic for several reasons, including the rapidity of the market recovery last year (which is still going), after the sharpest market crash in history. Large stimulus programs in both Australia and the US probably helped as well.

Millennials and Gen Z flock to the ASX

According to the AFR, the number of first-time users of CommSec’s platform has surged by 125% since the onset of the pandemic. The number of CommSec customers with no previous share market experience more than doubled as well. The report tells us these traders went from making up 8% of CommSec’s total customer base in February 2020 to 18% by December.

Around 83% of those new customers were reportedly under 44, a 17% increase. Since the start of the pandemic, first-time traders accounted for roughly 10% of all trades on the platform. That’s up from around 4% prior to the pandemic.

The report confirms that CommSec is enjoying the spoils from a rising tide. Stake has also reported surging use, and 60% of its customer base is under 35.

This ‘Robinhood effect’ is certainly less controversial in Australia than in the US. Increased ASX millennial and Gen Z market participation hasn’t become associated with the kinds of unfettered and wild trading that we have seen coming out of the US. That was exemplified by the GameStop Corp (NYSE: GME) saga from a few weeks ago. The millennial/Gen Z-dominated WallStreetBets Reddit group spearheaded the GameStop short-squeeze. According to the report, WallStreetBets now has over 8 million members following the saga.

It looks as though younger investors are a force that is here to stay.

More reading

• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• Is the CBA (ASX:CBA) share price a buy?
• Top brokers name 3 ASX shares to sell today
• Why I’m never selling my Square shares
• 4 steps to pick winning ASX shares

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 CBA (ASX:CBA)’s CommSec expanded its millennial footprint appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3rV2CRi

The Orthocell Ltd (ASX: OCC) share price has had a mixed day of trading so far after the company announced a new United States patent for its flagship product.

After tracking as high as 58 cents this morning, shares in the regenerative medicine company have since retreated. At the time of writing, the Orthocell share price is trading down 2.68% to 54.5 cents.

What did Orthocell announce?

In today’s release, Orthocell advised it has been granted a new US divisional patent for CelGro. The patent provides additional intellectual property (IP) to protect the platform for soft tissue regeneration and repair applications, and expires in June 2033.

Orthocell also revealed it had secured 11 patent families that protect its intellectual property. This includes 110 separate patents/applications, of which 75 have already been granted.

Manufactured in Western Australia, the company believes CelGro has numerous competitive advantages over existing synthetic and biologic tissue repair products. Orthocell said CelGro was known to be superior in cell biocompatibility, tensile strength and tissue repair. The medical device has shown positive results in repairing bone defects in the jaw, assisted in re-joining severed or damaged peripheral nerves, and enhanced restoration of the rotator cuff tendon (shoulder).

Branded as Striate+ in the United States, the CelGro Dental platform will be used for dental bone and tissue regenerations procedures. This includes dental bone repairs, growth around dental implants in extraction sockets, and tissue regeneration in intrabony defects.

Management commentary

Orthocell managing director Paul Anderson welcomed the recent patent approval, saying:

This is an important patent that further protects and strengthens our IP position for CelGro, providing greater layers of protection. This patent also complements the recent market approval of the first CelGro product, Striate+ for dental bone and soft tissue repair procedures approved in the US, EU and Australia.

Orthocell share price snapshot

The Orthocell share price is up almost 20% over the last 12 months. The company’s shares hit a low of 18 cents in last year’s COVID-19 market rout in March, before quickly rebounding. 

Based on the current share price, Orthocell has a market capitalisation of around $104 million.

More reading

• Why the Orthocell (ASX:OCC) share price is on the rise

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 Why is the Orthocell (ASX:OCC) share price falling today? appeared first on The Motley Fool Australia.

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

The Douugh Ltd (ASX: DOU) share price is going gangbusters today. Douugh shares are up 14.58% at the time of writing to 27.5 cents a share. Douugh closed at just 24 cents a share last Friday, and actually opened even lower this morning at 23 cents. However, just after open, the Douugh share price went from a low of 22 cents all the way up to 37.5 cents before settling at its current level.

The current price represents the highest levels Douugh has been at since mid-November last year. That was just before the company’s shares were placed in a lengthy trading halt.

No major Douugh news

Normally, a 50% jump in a company’s share price is sparked by something substantial, such as a company announcement or a piece of significant news.

However, the reason the Douugh share price is spiking today is unclear. There are no official major announcements or noteworthy news to speak of out of the fintech company today.

The ASX has sent Douugh a ‘please explain’ following the price moves this morning. In its response, Douugh has told the ASX it is unaware of anything that could have sauced this share price spike. It referred the ASX to some recent announcements regarding its acquisition of Goodments, as well as last week’s revelation of a new product.

That latter announcement came on Tuesday, when Douugh announced it had launched a new product called ‘Autopilot’ within its financial wellbeing app. Autopilot contains a number of “self-driving” cash management features, such as Salary Sweeper. This helps users automatically allocate their cashflow to expense accounts and the like.

Of course, Douugh shares only resumed trading on 5 February after six weeks in a trading-halt purgatory. That trading halt was imposed after the ASX initiated an investigation into Douugh over some potentially improper share trading by the parents of director Bert Mondello. Douugh has since told investors that it will hold a general meeting to ask investors for permission to initiate a capital reduction to compensate for the issuance of the shares in question. The profits that Mr Mondello’s parents made from the sale of the shares will also be donated to charity.

More reading

• Why Douugh, Macquarie, Starpharma, & Suncorp shares are storming higher
• Why the Douugh (ASX:DOU) share price is charging 16% higher today
• Why Douugh, Janus Henderson, Northern Star, & Orocobre are dropping lower
• Why the Douugh (ASX:DOU) share price is crashing 18% lower

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 ASX investigates after Douugh (ASX:DOU) share price spikes 56% appeared first on The Motley Fool Australia.

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

One area which has been tipped as a place to invest for the long term is the tech sector.

This is because this sector is filled with companies that have the potential to grow significantly in the future.

Two ASX tech shares to look at are listed below. Here’s why they might be long term buys:

Afterpay Ltd (ASX: APT)

The first ASX tech share to consider is Afterpay. It is a payments company that has been growing at a rapid rate over the last few years. This has been driven by the growing popularity of the buy now pay later payment method with consumers and retailers and its successful international expansion.

Pleasingly, this strong growth has accelerated in FY 2021 thanks to the shift to online shopping because of the pandemic. This appears to have positioned the company perfectly for another blockbuster result this year.

Looking ahead, Afterpay will soon release banking products such as transaction accounts. There is also speculation that it won’t stop there and could even expand into other products such as mortgages in the future. This has the potential to be a real threat to the banks and be another key driver of future growth.

Analysts at Bell Potter are confident on its future. According to a recent note, the broker has retained its buy rating and lifted its price target on Afterpay’s shares to $168.50.

Audinate Group Limited (ASX: AD8)

At the small end of the tech sector you will find Audinate. It is a digital audio-visual (AV) networking technologies provider which was delivering impressive sales growth over the last few years prior to the pandemic.

This was thanks to its Dante product, which replaces all audio connections with a computer network. It then effortlessly sends hundreds of channels of audio over slender ethernet cables with perfect digital fidelity.

Dante is the clear market leader. In fact, Dante has eight times as many enabled devices as its nearest rival. The company is now aiming to do the same with the visual side of the market and has a growing team of experts in the UK.

One broker that is positive on Audinate is Morgan Stanley. It is happy with its recovery since the height of the pandemic and notes that Audinate had a record-breaking second quarter. This was particularly pleasing given how many of its customers are still facing COVID headwinds. The broker has an overweight rating and $9.00 price target on the company’s shares.

More reading

• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• Why this fund manager is a fan of Afterpay (ASX:APT) and these ASX growth shares
• These ASX shares are helping this fund manager smash the market
• Another day, another Zip (ASX: Z1P) share price record
• 4 steps to pick winning ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended AUDINATEGL 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 2 of the best ASX tech shares to buy this week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3aiqKr0

After rocketing higher on Friday following its initial public offering (IPO), the Singular Health Group Ltd (ASX: SHG) share price is doing it again on Monday.

In afternoon trade the 3D medical imaging company’s shares are up a further 26% to 48 cents.

This means the Singular Health share price is now up a massive 140% from its listing price of 20 cents.

Why is the Singular Health share price surging higher?

Investors appear to have been buying Singular Health shares due to excitement around the company’s technology.

Singular Health is a technology-driven medical imaging company with the aim of developing technologies that provide patients and practitioners with access to personalised, enhanced, medical data to inform better health decisions.

Its key solution is the Volumetric Rendering Platform. This platform uses proprietary code and algorithms to accurately convert traditional 2D medical imagery into volumetric 3D models.

Once this imagery has been converted into 3D models, users are able to visualise, manipulate, modify, and review the model using a standard monitor or by utilising virtual reality.

Management notes that its platform has several distinct advantages. It expects these advantages to drive adoption in the areas of surgical planning, medical education, and patient education.

What’s next?

Singular Health raised $6 million from its IPO. The proceeds will be used to execute its growth strategy, fund research and development, working capital, and for the purchase of a titanium 3D printer.

In respect to its growth strategy, management appears positive on the future.

It commented: “Singular Health has already established a strategy for the vertical integration of the Company’s capabilities, in collaboration with key opinion leaders and joint ventures with established businesses, to develop an end-to-end solution for the visualisation, analysis and segmentation via artificial intelligence and production of bespoke solutions through additive manufacturing.”

However, it is still early days. Furthermore, a significant amount of future growth is already being priced into Singular Health’s shares.

Based on the current Singular Health share price and its 102.2 million shares outstanding, the company has a market capitalisation of $49 million. This compares to financial year to date revenue of just $22,000.

More reading

• Singular Health (ASX:SHG) share price rockets 100% higher following IPO
• Why Novonix, Recce, Singular Health, & Starpharma shares are storming higher
• Singular Health (ASX:SHG) shares arrive on the ASX

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

The post The Singular Health (ASX:SHG) share price is now up 140% since its IPO appeared first on The Motley Fool Australia.

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

DigitalX Ltd (ASX: DCC) shares are soaring today following the release of an update on the company’s digital asset funds management business alongside developments in the Bitcoin (CRYPTO: BTC) and digital asset market.

At the time of writing, the DigitalX share price is trading 17.57% higher at 8.7 cents. Let’s take a closer look.

What did DigitalX report?

The DigitalX share price is on a tear today after the company reported that it is continuing to increase its exposure to Bitcoin, the world’s largest cryptocurrency. The company is also expanding its exposure to the wider digital asset market via increasing funds under management and corporate treasury.

DigitalX reported record monthly inflows in February, which it attributes to the activation of new funds management marketing strategies in January. The company is exploring the potential to evolve its Bitcoin Fund structure for greater accessibility and liquidity for both current and future investors.

DigitalX also revealed its direct Bitcoin and digital asset exposure is up 70% since 31 December.

The company forecast that 30% of the world’s population could own Bitcoin by 2024 if the historical rate of Bitcoin adoption continues apace. It also pointed to Tesla Inc (NASDAQ: TSLA)’s decision to invest US$1.5 billion (AU$1.9 billion) into Bitcoin, and its willingness to accept Bitcoin as payment, as more evidence confidence in digital assets is growing.

DigitalX itself is no newcomer to Bitcoin. The company has held Bitcoin as part of its long-term corporate treasury position since 2017.

Australian institutions have been slower to adopt cryptocurrencies such as Bitcoin than their United States counterparts.

Homing in on the Aussie market, Leigh Travers, executive director of DigitalX, said:

As more Australian investors become aware of this market opportunity, I am confident we will see a seismic shift in the investor interest in Australia. A multi-hundred billion dollar pool of capital is safeguarded in the Australian SMSF sector, and DigitalX is well placed to offer the secure and trusted provider for Bitcoin and digital asset investment.

DigitalX share price snapshot

With today’s intraday gains, the DigitalX share price is up 190% over the past 12 months.

For comparison, the All Ordinaries Index (ASX: XAO) is down 1% over that same time. Based on the current share price, DigitalX has a market capitalisation of around $46 million.

More reading

• Why I’m never selling my Square shares
• These 3 ASX shares invested in Bitcoin before Tesla (NASDAQ:TSL)

Bernd Struben has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post DigitalX (ASX:DCC) share price soars 18% following Bitcoin update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3u0mwfd

Things are just going from bad to worse at Crown Resorts Ltd (ASX: CWN) as the fallout over the New South Wales Independent Liquor and Gaming Authority (ILGA)’s inquiry into the gaming giant continues to spread.

Crown had a week to forget last week when the ILGA handed down its inquiry report, which found that Crown is “not suitable” to operate its new casino in Sydney’s Barangaroo precinct.

The commissioner of the inquiry, former Supreme Court justice Patricia Begin, said the following in the report:

Any applicant for a casino licence with the attributes of Crown’s stark realities of facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction and pursuing commercial relationships with individuals with connections to Triads and organised crime groups would not be confident of a positive outcome… The Licensee is not suitable to continue to give effect to the Barangaroo Licence and that Crown is not suitable to be a close associate of the Licensee…

If Crown is to survive this turmoil and convert itself into a company that can be regarded as a suitable person and achieve the same for the Licensee, there is little doubt that it could achieve a fresh start and emerge a very much stronger and better organisation.

Crown shakes things up

It appears Crown has taken this damning report to heart. This morning, the company released an announcement to the ASX before market open in response. In this announcement, the company informed investors that its chief executive officer and managing director Ken Barton would be stepping down from his roles “with immediate effect”.

Fellow director Helen Coonan will be stepping up to the executive chair role. She will also lead the company as the board begins a search for Barton’s replacement.

Coonan stated the following on her new role, and what the future holds for Crown:

Assuming the role of Executive Chairman is a decision I have not taken lightly but the Board feels it provides leadership stability and certainty at this important time for the business. The Board is determined to maintain the momentum as Crown takes significant steps to improve our governance, compliance and culture.

The Crown share price has responded to this announcement with muted approval. Crown shares are up 0.51% at the time of writing to $9.94.

More reading

• 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
• Why CIMIC, Crown, Domino’s, & Praemium shares are tumbling lower today

Motley Fool contributor Sebastian Bowen 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 Crown (ASX:CWN) loses its CEO as fallout continues appeared first on The Motley Fool Australia.

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

The Cooper Energy Ltd (ASX: COE) share price dipped around 4% this morning after the company released its FY21 half-year results.

Cooper Energy is an exploration and production company that generates revenue from gas supply to south-east Australia, and low-cost Cooper Basin oil production. The company has a portfolio 0f prospective acreage in Australia’s Cooper, Otway and Gippsland basins.

The Cooper Energy share price is currently trading at 30 cents a share. 

Why is the Cooper Energy share price sliding?

Cooper Energy recorded a statutory loss after tax of $23.1 million for the six months ended 31 December 2020. This compares to a $6.3 million profit after tax recorded in the first half of 2020.

The loss comes despite the company reporting record production and sales volumes for the period.

Cooper Energy advised that its FY21 half-year results were impacted by costs associated with the Orbost Gas Processing Plant (OGPP). 

Cooper’s cash and cash equivalents balance decreased by $16.3 million over the period, and total assets decreased by $15.7 million from approximately $1.03 billion to $1.01 billion.

On 31 December 2020, the company held cash and cash equivalents of $115.3 million and investments of $1.0 million.

Outlook

The company plans to continue developing and operating a portfolio of gas assets to supply the south-east Australia domestic gas market.

Cooper Energy expects to record substantial growth in production, revenue and cash flow during the six months to 30 June 2021. This is due to increased production activities.

For the full year ending 30 June 2021, the business is guiding toward a total capital expenditure of $45 to $50 million.

Commenting on future production activities, Cooper Energy managing director David Maxwell said:

Current daily gas production rates of circa 60 TJ/day from our Gippsland and Otway Basin permits represent a roughly 300% increase on average daily rates this time last year.

With production at Orbost stabilising, we have guided towards full year FY21 production of 2.7–2.9 MMboe (FY20: 1.56 MMboe) and sales volumes of 2.9–3.1 MMboe (FY20: 1.54 MMboe).

With our acreage located for cost competitive supply to south-east customers and strong gas market fundamentals, Cooper Energy is ideally positioned to continue growing production, revenue and cash flow.

The Cooper Energy share price has tumbled 44% over the previous 12-month period.

More reading

• DigitalX (ASX:DCC) share price soars 18% following Bitcoin update
• Crown (ASX:CWN) loses its CEO as fallout continues
• Why is the Lifestyle Communities (ASX:LIC) share price pushing higher?
• Why the Cimic share price (ASX:CIM) is edging higher today
• Why Advance NanoTek, Incitec Pivot, Starpharma, & Zoono are tumbling lower

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 Here’s why the Cooper Energy (ASX:COE) share price is slumping today appeared first on The Motley Fool Australia.

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

Lifestyle Communities Limited (ASX: LIC) shares are on the rise today as the company released its half-year results and investor presentation. At the time of writing, the Lifestyle Communities share price is trading 3.86% higher at $14.26.

How did Lifestyle Communities perform?

The Lifestyle Communities share price is responding positively after the company reported making solid progress during the first half of FY21. This was despite the ongoing impacts of COVID-19 and Melbourne’s stage 4 lockdowns impacting operations for most of the period.

Nonetheless, Lifestyle Communities achieved a net profit after tax (NPAT) of $14.1 million for the first half of the year. This compared to the $15.1 million achieved in the same period last year. Lower new home settlements relative to last year was the primary driver for the variance. However, the impact was partially offset by an 8% increase in income from site rentals, which were up from $11.4 million to $12.3 million due to the increased number of homes under management.

Furthermore, construction has continued throughout the period. Six communities are currently under development to meet the anticipated increased demand post-pandemic.

On this front, the company stated it was pleased with the acquisition of its new site in Rockbank during the period. Rockbank sits in Melbourne’s fast-growing North West corridor and has helped to reaffirm the company’s goal of delivering 900 to 1,100 settlements over the next three years.

Management comments

Lifestyle Communities Managing Director Mr James Kelly welcomed the news saying:

Given the circumstances we faced during the period, I am pleased with these results. We adjusted our sales process to focus more on sharing information and building knowledge. As a result of this, customers are advanced on understanding the benefits of the Lifestyle model now that restrictions have eased and we are once again able to meet customers face to face. This, combined with an increase in completed and available homes sees us well placed to meet the demands of customers ready to move after restrictions eased.

About the Lifestyle Communities share price

The Lifestyle Communities share price is one of the very few real estate investment trusts (REITs) listed on the ASX that has performed strongly over the last year. In fact, during 2020, it was the strongest performer within the S&P/ASX 200 Real Estate Index (ASX: XRE).

So far this year, Lifestyle Communities shares are trading around 12% higher, easily outpacing the All Ordinaries Index (ASX: XAO)’s return of 2.7%.

On a final note, Lifestyle Communities shareholders will be entitled to an interim fully franked dividend of 3 cents per share. This is consistent with the payment for the same period last year.

More reading

• Why the Cimic share price (ASX:CIM) is edging higher today
• Why Advance NanoTek, Incitec Pivot, Starpharma, & Zoono are tumbling lower
• Why the BARD1 Life Sciences (ASX:BD1) share price is rocketing another 54% today
• The Atomos (ASX:AMS) share price is on fire today, up 12%
• ASX 200 up 0.8%: Nearmap jumps, Bendigo and Adelaide Bank impresses

Motley Fool contributor Daniel Ewing 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 is the Lifestyle Communities (ASX:LIC) share price pushing higher? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3b84EXq

The Cimic Group Ltd (ASX: CIM) share price is edging higher today after the company announced that it would abandon its Middle East investment.

At the time of writing, the Cimic share price is inching 0.78% higher to $20.71.

The Cimic Group provides a range of services to the infrastructure, resources and property markets. These include construction, mining, mineral processing, engineering, concessions, and operation and maintenance services.

What did Cimic announce?

The Cimic share price is on the move today after reporting an update on its divestment from its Middle East operations.

In this morning’s release, Cimic advised that it has signed a share purchase agreement with SALD Investment LLC.

Under the deal, Cimic will sell its 45% non-controlling interest in Dubai-headquartered BIC Contracting (BICC) for a nominal consideration. SALD is also seeking to acquire the remaining 55% stake of BICC from Cimic’s co-shareholder.

The company stated that it would refocus its efforts on major markets including Australia, New Zealand, and the Asia Pacific. Pending customary conditions, the completed sale will eliminate all of Cimic’s interests in the Middle East.

SALD will own all of BICC’s businesses in the United Arab Emirates, Qatar, Oman, and Saudi Arabia.

Previously, Cimic agreed to contribute a “certain amount” of cash into BICC to meet its contractual obligations with SALD. The company noted that the $1.8 billion write-down was included into its 2019 result. Cimic further advised that any monetary impact related to the sale would not affect its financial statements going forward.

About the Cimic share price

Over the last 12 months, the Cimic share price was relatively stable prior to its results for the full-year ending 31 December 2020 released last week. Its shares plummeted more than 20% as investors ran for the hills. Since then, the company’s shares have settled for the moment.

Cimic commands a market capitalisation of $6.4 billion at today’s prices.

More reading

• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• These were the worst performing ASX 200 shares last week
• The Cimic (ASX:CIM) share price is dipping today despite contract win
• Here’s why all eyes will be on the Cimic (ASX:CIM) share price today
• Why CIMIC, Crown, Domino’s, & Praemium shares are tumbling lower 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 Why the Cimic share price (ASX:CIM) is edging higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Nsv5io