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SciDev Ltd (ASX: SDV) shares are soaring today after the company released its half-yearly report. In morning trade, the SciDev share price jumped 10% to an intraday high of 77 cents before retracing to its current price of 73.5 cents, up 5%.

Why is the SciDev share price rising?

The ScidDev share price is responding positively today after the company announced its first-ever profit. 

ScidDev’s revenue for the first half of FY21 came in at $18.3 million, reflecting strong business development across all four of its sectors. As drilling activities continued to rebound, the oil and gas sector’s continued growth delivered an impressive $6.9 million towards revenue. All up, this drove the impressive 300% in revenue growth compared to the same period last year.

Cash receipts were also strongly higher on the prior corresponding period, rising from $3.8 million to $15.8 million for the half. However, despite the strong uplift in cash receipts, cash from operating activities was negative $4.6 million for the period. SciDev claims that the negative cash flow reflects timing differences between revenue and costs, and a product inventory build as the company aims to drive future growth.

Despite the negative cash flow, SciDev held $7.1 million in cash at the end of the half, ending the period with $3.5 million of inventory on hand. 

Management comments

Reflecting on the company’s performance in the first half of  FY21, SciDev chief executive officer Lewis Utting said:

It is pleasing to deliver a profit over this period. The strong revenue growth we delivered is a positive reflection of the continued work from the SciDev team and the growing acknowledgement and appreciation from the market for our bespoke products and technology.

Importantly, we are continuing to progress towards cashflow sustainability. The Company delivered a positive net cashflow from operations of A$1.8m in the second quarter. With our growth pipeline and strong gross profit margin we will continue to push towards positive cash generation over the remainder of FY21.

Outlook

Also in today’s update pushing the SciDev share price higher, the company commented on its plans for the remainder of FY21. These include focusing on SciDev’s presence in the North American oil and gas sector. On this front, the business is continuing discussions with technology partners in the area. It also plans to carry out ongoing assessments of strategic growth opportunities globally.

The SciDev share price has had a disappointing time as of late, falling by more than 4% over the last month prior to today’s rise. Incorporating today’s share price gains, SciDev shares are up 0.68% for the one-month period. In comparison, the All Ordinaries Index (ASX: XAO) has risen 2.2% over the same period.

More reading

• What’s moving the Charter Hall Long WALE (ASX:CLW) share price today?
• Why the Creso Pharma (ASX:CPH) share price is tumbling 5% lower
• Why the Afterpay (ASX:APT) share price is exploding even higher today
• The Cobalt Blue (ASX:COB) share price is rocketing 13% today. Here’s why
• Here’s why the Magnis (ASX:MNS) share price surged 15% this morning

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.

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The Charter Hall Long WALE (ASX: CLW) share price is trading roughly 0.74% higher today following the release of the company’s FY21 half-year results. At the time of writing, the Charter Long share price is $4.74.

Charter Hall is an Australian real estate investment trust (REIT). The company’s real estate assets are predominantly leased to corporate and government tenants on long-term leases.

Charter Hall’s financial highlights

The Charter Hall share price is up slightly on the back of the company reporting its most recent half-year results. The REIT reported $697 million of new investments during the six months ending 31 December 2020.

The company estimates its portfolio valuation is $4.5 billion, up from $3.6 billion as at 30 June 2020.

Charter Hall increased its total asset growth by 16.5%, or $509 million. The company said the gain is a product of acquisitions that settled during the period and a property evaluation uplift of $150 million.

The company raised $388 million of equity during 1H FY21. During the timeframe, additional capital management activities included the increase of existing bank facilities by $150 million and extending the maturity of the agreements by 1.1 years.

Charter Hall Exchange Investment Trust, in which the company has a 50% interest, also completed a $300 million 10-year medium-term notes issuance during the period.

Operating earnings per share (EPS) jumped 3.6% over 1H FY20 to come in at 14.5 cents per share. Charter Hall reaffirmed its FY21 Operating EPS guidance of no less than 29.1 cents per security.

A snapshot of the Charter Hall property portfolio

Charter Hall listed having 459 properties as of December 2020 with a 97.5% occupancy rate. The weighted average lease expiry (WALE) is approximately 14 years.

Some tenants of Charter Hall include Woolworths Group Ltd (ASX: WOW), Telstra Corporation Ltd (ASX: TLS), and BHP Group Ltd (ASX: BHP). The company also leases office space to several government departments.

Charter Hall categorises its tenants as telecommunications, government, grocery and distribution, fuel and convenience, pubs and bottle shops, food manufacturing, water and recycling management, and ‘other.’

In late January, Charter Hill also secured a $20 million Brisbane warehouse deal. Construction Equipment Australia will be one of the company’s latest tenants upon completion of the Darra-based 5,600sq m facility.

Management commentary 

Reflecting on new business and partnerships formed during the first half of FY21, Avi Anger, Charter Hall Long WALE REIT fund manager said:

During 1H FY21 we further diversified and improved the resilience of CLW’s portfolio and increased the portfolio WALE. We extended our partnership with bp, acquiring an interest in 70 Long WALE triple-net (NNN) convenience retail properties in New Zealand. In December, we further expanded our telco exchange portfolio with the acquisition of Telstra’s Pitt Street, Sydney CBD telco exchange. At the end of the period, we also agreed to acquire a 50% interest in the David Jones flagship Elizabeth Street store in the Sydney CBD.

Over the past 12 months, the Charter Hill share price has fallen over 14%.

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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.

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The Creso Pharma Ltd (ASX: CPH) share price has been a poor performer on Monday.

At one stage today the cannabis company’s shares were down almost 5% to 20 cents.

The Creso Pharma share price has since recovered a touch but is still down 2.5% to 20.5 cents at the time of writing.

Why is the Creso Pharma share price sinking 5%?

Today’s decline appears to be in relation to an announcement out of Creso Pharma this morning.

According to the release, the company has brought the marketing and sales function of its cannaQIX product inhouse in Switzerland. Creso will be taking over from its commercial partner Doetsch Grether.

Management revealed that it made the move following a growing trend of direct inbound sales enquiries and interest in cannaQIX.

The release explains that cannaQIX is listed with key wholesalers reaching over 2,100 point of sales to consumers. This includes through pharmacies, pharmacy networks, drugstores, health nutrition shops, and bigger retail shops such as Manor. Today’s decision means that Creso will now be directly supplying all major wholesalers in the country.

In addition to this, the company notes that by bringing this function inhouse, Creso is able to improve its profit margins for cannaQIX substantially. It also believes that it sets the stage for further product extensions and new product launches such as cannaDOL in Switzerland.

However, judging by the Creso share price performance, some investors don’t appear overly convinced by the move.

Though, management seems to think it is the right thing to do. The company’s Commercial Director, Dr. Gian Trepp, said: “We are implementing phase 3 of Creso’s operational launch plan by bringing the marketing & sales function of our products inhouse. While we are thankful of having benefitted from our partnership with Doetsch Grether, our direct sales model will give Creso the opportunity to expand its profit margins as it enters a new phase of growth.”

More reading

• Why Cann, Creso, LiveTiles, & New Corp shares are tumbling lower today
• What’s happening with the Creso Pharma (ASX:CPH) share price today?
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• Here’s why the Creso Pharma (ASX:CPH) share price is rocketing 18% higher
• Why Bingo, Creso Pharma, Domino’s, & Tyro shares are zooming higher today

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

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The Afterpay Ltd (ASX: APT) share price is on fire again today, just one trading day after hitting a new all-time high last week.

The Afterpay share price is sitting at $155.19 at the time of writing, up 2.57% today. But earlier this morning, the buy now, pay later (BNPL) market darling again hit another new record high, this time $156.50 a share.

That means that Afterpay shares are up more than 10% over the past week alone, more than 33% over the past month, and more than 300% over the past 12 months. At the company’s current market capitalisation of $44.15 billion, Afterpay is now worth more than ASX blue chips like Coles Group Ltd (ASX: COL), Telstra Corporation Ltd (ASX: TLS) and Transurban Group (ASX: TCL).

So what on earth is going on here?

Investors step on the gas

There are 2 powerful tailwinds that Afterpay is sitting in to note before we even discuss today’s move.

The first is the recent good form the entire S&P/ASX 200 Index (ASX: XJO) has been experiencing over the past week in particular, off the back of the Reserve Bank of Australia’s (RBA) announcement last week.

The RBA announced that it would double-down on its quantitative easing (QE) programs and probably keep interest rates at the record low of 0.1% until 2024. This has lit a fire under the ASX and sent investors chasing growth stocks in particular. Afterpay fits that bill very well.

Secondly, the BNPL space has also been driving investors’ wild. Late last month, Afterpay’s rival Zip Co Ltd (ASX: Z1P) delivered a very positive quarterly update, in which it outlined that transaction volumes were up 103% to $1.6 billion over the quarter. Since BNPL is still a relatively new industry, perhaps it’s still a case of a ‘rising tide lifts all boats’ for investors.

These are all strong undercurrents that are certainly not hurting investor sentiment over Afterpay today.

The Afterpay-ty rages

But perhaps the biggest catalyst for Afterpay today is attention from brokers.

According to reporting in The Sydney Morning Herald (SMH) this morning, broker Seaport Global has slapped Afterpay shares with a ‘buy’ rating and a new price target of $175 a share. That implies an upside from the current share price of roughly 13%. Perhaps that was all that some investors already experiencing FOMO over Afterpay needed this morning.

The SMH report also states that another broker in Morgan Stanley is also bullish on Afterpay, noting the company’s app downloads in the United States in January were double what they were a year ago. That in turn, Morgan Stanley argues, bodes well for future revenue growth.

The Afterpay share price – arguably the longest and wildest party on the ASX – looks set to keep raging if those assessments prove accurate.

More reading

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• Treasury Wines (ASX:TWE) share price lifts amid media speculation
• Why the News Corp (ASX:NWS) share price is at multi-year highs

Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Cobalt Blue Holdings Ltd (ASX: COB) share price is on a tear today. Shares are up 13% in early afternoon trading.

Investor interest appears to have turned to Cobalt Blue following an update on the company’s Broken Hill Cobalt Project in New South Wales.

What progress did Cobalt Blue report at Broken Hill?

In this morning’s ASX release, Cobalt Blue revealed that its wholly-owned subsidiary, Broken Hill Cobalt Project Pty Ltd, had received notice of its proposed grant of exploration licence application.

The tenement application covers some 67sq km and will increase Cobalt Blue’s exploration area in the Broken Hill region by approximately 70%.

The company said its advanced exploration targeting bolsters the long-term exploration opportunities at Broken Hill.

Commenting on the project, Cobalt Blue CEO Joe Kaderavek said:

We are continuing to assess opportunities for further acquisition across the Curnamona Province. With the current mineral resource inventory supporting a 17-year operation, further consolidation in the region will secure long-term exploration potential.

The company said it will prioritise the continued consolidation of ground within the Broken Hill region. This consolidation supports its long-term exploration strategy.

So far the company has identified numerous exploration targets, which it reports could enable it to sustain the mineral resource growth it’s achieved since 2016. Several targets identified by the 2017 VTEM-Max survey have not been tested yet. Two of these areas remain a high priority for further exploration: Pyrite Hill South and Railway South.

Cobalt Blue share price and company snapshot…

Cobalt Blue Holdings is a mineral exploration and project development company with a focus on cobalt. The company predicts it will see strong demand for cobalt – used in lithium-ion batteries – as the world transitions away from fossil fuels.

The company first traded on the ASX in February 2017 and now has a $79 million market capitalisation.

With today’s intraday gains taken into account, the Cobalt Blue share price is up 56.5% in 2021. By comparison, the All Ordinaries Index (ASX: XAO) is up 3.2% this calendar year.

Over the past 12 months, Cobalt Blue shares are up 177%. And investors who bought at the 24 March lows are sitting on a share price gain of 350%.

More reading

• Cobalt Blue (ASX:COB) share price shot up 42% this afternoon. Here’s why.

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

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Shares in Magnis Energy Technologies Ltd (ASX: MNS) surged higher in morning trade following the company’s update regarding its heavily over-subscribed placement. The Magnis share price reached an intraday high of 38 cents this morning after emerging from a trading halt.

However, at the time of writing, some profit taking has led the company’s shares to retrace back to 33 cents, now flat for the day so far.

What drove the Magnis share price higher?

The Magnis share price was temporarily boosted today after the company reported a successful placement to fast-track its New York battery project.

According to its release, Magnis advised that local and overseas institutional, professional, and sophisticated investors took part in the placement. The firm commitments received will raise $34 million for the company through the issuance of 121,428,572 ordinary shares.

The offer price will be listed at 28 cents apiece and include a free attaching unlisted option with each share. The exercisable option will be at a strike price of 50 cents for each share applied. These options will have an expiry date of two years from the date of issue.

Due to current capacity limits, Magnis will split the placement into two tranches. The first portion will consist of 108,309,700 fully paid ordinary shares, for which the company will utilise its 15% capacity under listing rule 7.1.

The second tranche, comprising the remaining 13,118,872 shares and the entire unlisted options, will be conditional on shareholder approval. This is because the company has exceeded its maximum allocation of shares without a shareholder vote.

Magnis stated that the funds received from the placement will be put towards progressing its New York battery plant. It’s estimated that the iM3NY battery plant will move into production sometime later this year.

Once completed, the iM3NY project will be largest lithium-ion cell manufacturer in the United States. The plant is expected to produce up to 15 gigawatts aimed at servicing the global energy market.

The company also noted that along with the placement, it has obtained debt and equity facilities to continue project financing. It expects the loans to be readily available before the end of the current financial quarter.

Management commentary

Magnis chair Frank Poullas commented on the company’s update, saying:

We have been working hard to achieve this funding for our New York project and to become a significant global producer of lithium-ion batteries. Strong investor appetite for clean energy technologies was evident through the overwhelming demand for this raise.

Today’s announcement will allow us to fulfill our goal of bringing the iM3NY plant into production in 2021 and cementing our place is this exciting emerging industry.

Magnis share price snapshot

The Magnis share price has surged 200% over the last twelve months despite dropping to around 5 cents in May 2020. Magnis shares reached a 52-week high of 42 cents late last month. Based on the current Magnis share price, the company has a market capitalisation of around $240 million. 

More reading

• Why the Argosy (ASX:AGY) share price is shooting 7% higher today
• How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?
• 2 ASX dividend shares with yields above 5%
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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.

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The Argosy Minerals Limited (ASX: AGY) share price fired up more than 7.5% to 17 cents at the time of writing, after reaching a 19 cent high in opening trade this morning.

Argosy Minerals is a mining and exploration company with a 77.5% (and ultimate 90%) interest in the Rincon Lithium Project in Salta Province, Argentina. The company also has a 100% interest in the Tonopah Lithium Project in Nevada, USA.

Argosy share price gains after $30 million pump 

Today, the company advised that it has received firm commitments for a $30 million placement to institutional, sophisticated and professional investors.

The capital raised will fully fund the production of battery quality lithium carbonate product from the Rincon site and contribute to on-going cash flow generation.

Argosy estimates that the Rincon site is presently a 2,000 tonnes-per-annum (tpa) operation. The construction timeframe is approximately 12 months with an estimated 4-month commissioning period after.

The company also plans to conduct feasibility and development works at the Rincon site to prepare for a 10,000 tpa scale operation.

According to today’s release, Argosy believes that the company is now positioned to be the only developer able to provide battery quality lithium carbonate at commercial qualities in the near-term.

Positioning Argosy Minerals for growth 

Argosy managing director Jerko Zuvela said the new funding was a testament to the company’s project developments and future position.

Commenting on the $30 million placement, Mr Zuvela said:

We received a significant endorsement of our business with this placement, and are now fully funded to achieve 2,000 tpa scale production at our Rincon Lithium Project.

This provides a clear mandate and pathway for continued commercial scale development, as we become only the second ASX-listed battery quality lithium carbonate producer.

This places the company in an enviable position to generate cash flow and be in a much stronger position to advance strategic arrangements whilst developing the 10,000 tpa operation.

The Argosy share price has gained around 113% over the past 12-month period.

More reading

• Why Argosy Minerals, Sigma, Vocus, & Zip shares are charging higher
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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.

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Online furniture retailer Temple & Webster Group Ltd (ASX: TPW) had a breakout year in 2020, moving from relative obscurity to become a household name during COVID-19 lockdowns.

Along with e-commerce company Kogan.com Ltd (ASX: KGN) and plus-size women’s clothing retailer City Chic Collective Limited (ASX: CCX), Temple & Webster became a retail market darling of the COVID-19 economy, boosting sales and increasing its market penetration. While traditional brick-and-mortar retailers like troubled department store Myer Holdings Limited (ASX: MYR) watched their share prices tank during lockdowns, this new generation of digital-focussed retailers saw their profits (and share prices) zoom higher last year.

From a low of just $1.52 during the March market crash, Temple & Webster shares surged a whopping 824% to a record high of $14.05 by late October. However, since then the company’s shares have lagged, edging back down to below $10 throughout most of November and December as investors waited to see how the company would perform as brick-and-mortar retail, particularly in Victoria, reopened after harsh lockdowns.

Has this business momentum carried over into FY21?

As my Fool colleague James Mickleboro reported last week, Temple & Webster recently released its first-half FY21 results to the market. The company reported half-year revenues of $161.6 million, a year-on-year increase of 118%, and earnings before interest, tax, depreciation and amortisation (EBITDA) of $14.8 million, a hefty 556% uplift. However, this still fell short of analysts’ expectations over at Goldman Sachs, who had forecast revenue of $171.1 million and EBITDA of $17.6 million.

The market response to the results was muted. Overall, Temple & Webster shares have remained flat at $11 or thereabouts for most of the week (they are trading at $11.19 as at the time of writing).

How does this compare to its competitors?

One of Temple & Webster’s key competitors is furniture retailer Nick Scali Limited (ASX: NCK), which operates more than 50 showrooms across Australia.

Nick Scali also reported strong first half FY21 results last week. Sales revenue jumped more than 24% versus first half FY20 to $171.1 million while underlying EBITDA surged more than 90% higher to $60.2 million. Underlying net profit after tax was $40.5 million, an increase of almost 100%.

Interestingly, while Nick Scali didn’t see the same sort of explosive share price growth of companies like Temple & Webster last year, it didn’t experience the same level of volatility throughout November or December either. Instead, its share price has climbed consistently higher, from a low of $2.65 back in March all the way up to $11.32 as at the time of writing. The Nick Scali share price is currently trading just short of the record high price of $11.61 posted at the beginning of January.

The battle between these two competitors will be interesting over the year ahead. Nick Scali arguably has a stronger pedigree and will benefit more from easing COVID-19 restrictions than its online rival. However, at this growth rate, Temple & Webster could surpass Nick Scali in terms of annual revenues by the end of  FY21.

More reading

• ASX stock of the day: Temple & Webster (ASX:TPW) goes from strength to strength
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• 2 fast-growth ASX tech shares that are being sold off
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Rhys Brock owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some ASX dividend shares that have dividend yields above 5%.

A yield of more than 5% is much higher than the current Reserve Bank of Australia (RBA) yield.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) which owns a diversified portfolio of different properties.

It’s invested across a number of different industries including long WALE retail (weighted average lease expiry), industrial and logistics, office, telecommunication exchanges and agri-logistics.

The business just reported its FY21 half-year result. At 31 December 2020, it had 459 assets with a valuation of $4.48 billion. Its WALE grew by 0.1 year to 14.1 years. Its occupancy rate was 97.5%.

Some of its most recent acquisitions include the David Jones property in the Sydney CBD and 70 BPs in New Zealand.

The business said that its distribution for the half year was increasing by 3.6% to 14.5 cents per unit. The net tangible assets (NTA) of Charter Hall Long WALE REIT increased by 5.1% to $4.70 per unit.

Charter Hall Long WALE REIT said that its operating earnings per share (EPS) for FY21 is still expected to be no less than 29.1 cents per unit, which would be growth of at least 2.8%. That translates to a FY21 distribution yield of at least 6.1%.  

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the biggest retailing businesses on the ASX. It operates JB Hi-Fi Australia, JB Hi-Fi Australia New Zealand and The Good Guys.

The ASX dividend share has been steadily growing its dividend each year for the past several years.

JB Hi-Fi has seen elevated levels of sales growth ever since the COVID-19 pandemic hit as consumers looked for ways to learn, work and be entertained at home.

FY20 saw total sales go up 11.6%, underlying earnings before interest and tax (EBIT) grew by 30.5% to $486.5 million and underlying EPS went up 33.2% to 289.6 cents.

That result saw the company increase its final dividend by 76.5% to 90 cents per share and the total FY20 dividend went up by 33.1% to 189 cents per share.

At the current JB Hi-Fi share price, that means it has a grossed-up dividend yield of 5.2%.

JB Hi-Fi recently gave an update for its FY21 first half result which showed that sales are expected to be up 23.7% to $4.94 billion, EBIT was up 75.9% and net profit was up 86.2% to $317.7 million. Online sales grew by 161.7% to $678.8 million, representing 13.7% of total sales. JB Hi-Fi said that a well-executed Black Friday promotional period more than offset the impact of the government mandated temporary store closures during the half.

The ASX dividend share said that gross margins improved significantly in key categories, particularly in The Good Guys. However, this was somewhat offset by the sales mix at JB Hi-Fi Australia and JB Hi-Fi New Zealand.

JB Hi-Fi said that disciplined cost control combined with strong sales growth to drive significant operating leverage.

The company continued to pay landlords and team members throughout the half, including periods where stores were temporarily closed.

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

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One of the best performers on the S&P/ASX 200 Index (ASX: XJO) on Monday has been the Zip Co Ltd (ASX: Z1P) share price.

In afternoon trade the buy now pay later provider’s shares are up a massive 10% to $9.60.

This means the Zip share price is now up a remarkable 72% since the start of 2021. As a comparison, the ASX 200 is up around 3% year to date.

Why is the Zip share price surging higher?

Investors have been fighting to buy Zip’s shares this year thanks largely to its impressive second quarter update in late January.

That update revealed that Zip delivered a 103% increase in transaction volume to a record $1.6 billion for the three months ended 31 December.

A key driver of this strong performance was Zip’s US-based QuadPay business.

Despite increasing competition from PayPal and Shopify, QuadPay reported a 217% increase in transaction volume to $673.1 million. This was driven by a 180% lift in customer numbers to 3.2 million and a 655% jump in merchants to 8,400 in the world’s largest retail market.

What about today’s gains?

Today’s gain in the Zip share price appears to be attributable to the aforementioned QuadPay business.

Thanks to its huge success, Zip is rumoured to be considering a secondary listing in the United States.

According to the AFR, management will spend the next few days in front of US investors, highlighting the meteoric growth of QuadPay.

By issuing American Depository Receipts that would mirror its ASX-listed shares, Zip would be able to trade in the US, giving it greater access to US capital markets.

The AFR notes that this would allow institutional investors who cannot invest in the ASX because of investment mandates to buy shares. However, according to the report, discussions regarding the US listing are believed to be at an early stage.

Though, there does appear to be substance to the rumours. A number of brokers are understood to be pitching secondary listings of a range of Australian technology shares that they think could attract US investor interest.

More reading

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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 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 Zip (ASX:Z1P) share price is storming 10% higher today appeared first on The Motley Fool Australia.

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