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The COVID-19 pandemic seems to have made Australians grateful for life’s basic necessities.

Supermarket giants Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) have been declared the country’s most trusted brands in the latest Roy Morgan rankings.

Wesfarmers Ltd (ASX: WES)’s Bunnings Warehouse came third, with stablemate Kmart not far behind as the seventh most trusted brand.

Privately owned Aldi made it a quinella for retailers, while Qantas Airways Limited (ASX: QAN) rounded out the top 5 in a year when it didn’t do much flying.

Top 10 most trusted brands in Australia
Rank	Brand
1	Woolworths
2	Coles
3	Bunnings
4	Aldi
5	Qantas
6	Apple Inc (NASDAQ: AAPL)*
7	Kmart
8	ABC
9	Microsoft Corporation (NASDAQ: MSFT)*
10	Myer Holdings Ltd (ASX: MYR)*
* – new entry Source: Roy Morgan; Table created by author

Roy Morgan chief executive Michele Levine noted Coles’ rapid ascent in esteem.

“In May last year we reported that Coles was the fastest mover, lifting three rankings,” she said.

“During the depths of COVID, our data collected between April and September 2020 reveals that Coles jumped another two rankings to be neck-and-neck with Woolworths in the top two positions.”

Despite the banks putting on loan repayment freezes, for the first time no financial institutions made it into the top 10.

The most distrusted brands in Australia

Despite the coronavirus forcing Australians to spend more time at home and on their smartphones and computers, 3 technology companies were labelled the least trustworthy.

Facebook Inc (NASDAQ: FB), Telstra Corporation Ltd (ASX: TLS) and Amazon.com Inc (NASDAQ: AMZN) would all feel a bit hard done by, considering the major roles they played in keeping everyone entertained and supplied during lockdowns.

The next 3 least trusted brands had more definitive reasons for their reputations.

Australians continued their love-hate relationship with News Corporation (ASX: NWS) as they distrusted its tabloid journalism but still bought its subscriptions and newspapers in massive numbers.

Coming in at fifth place was AMP Ltd (ASX: AMP) whose share price plunged during the Royal Commission and kept sinking last year through some sexual harassment scandals.

Rounding out the top 6 was Rio Tinto Limited (ASX: RIO), which blew up the historically significant Juukan Gorge site in Western Australia last May.

“Distrust remains the number one risk factor for the nation’s companies because it is the toxic element in brand equity. Trust is a brand asset while distrust is a brand liability,” said Levine.

“It’s clear, then, that distrust should be on the risk register of every publicly listed company in Australia.”

Top 10 most distrusted brands in Australia
Rank	Brand
1	Facebook
2	Telstra
3	Amazon*
4	News Corporation
5	AMP
6	Rio Tinto*
7	Huawei*
8	Google
9	BP plc (LON: BP)*
10	Westpac Banking Corp (ASX: WBC)
* – new entry Source: Roy Morgan; Table created by author

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Tony Yoo owns shares of Alphabet (A shares), Amazon, and Qantas Airways Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, Apple, Facebook, and Microsoft and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Apple, and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Korean automaker Kia Motors surged after a major South Korean newspaper reported that Apple Inc (NASDAQ: AAPL) will invest $3.6 billion in Kia as part of a deal to build Apple cars in Kia’s US factory. 

The paper, Seoul-based Dong-A Ilbo, reported that Kia and Apple are close to a deal under which Kia will build Apple’s long-rumored electric car in its factory in West Point, Georgia. The initial production target is 100,000 vehicles per year starting in 2024, according to the report, with the potential to expand to a maximum of 400,000 per year. 

As part of the deal, Apple will invest 4 trillion Korean won ($3.6 billion) in Kia, per the report. 

Apple’s long-running project to develop a car has been the subject of rumors for years. Originally thought to be a self-driving taxi, more recent reports hint that the Apple vehicle will be a somewhat more mainstream electric car – possibly with some self-driving technologies – that will be thoroughly integrated into the existing Apple device ecosystem. It’s possible that the Apple car will be based on the E-GMP electric-vehicle architecture developed by Kia’s corporate sibling Hyundai. 

While the reported production volumes suggest an upscale but not luxury-level price target (in line with Apple’s strategy around its other consumer devices), it’s not yet clear whether Kia’s Georgia factory will be manufacturing cars for global export or just for the United States. 

The companies tentatively plan to announce the collaboration on 17 February, Dong-A Ilbo reported.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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John Rosevear owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia has recommended Apple. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Core Lithium Ltd (ASX: CXO) share price has returned from its trading halt and is sinking lower.

At one stage today, the lithium-focused mineral exploration company’s shares were down as much as 17% to 28.5 cents.

The Core Lithium share price has since recovered a touch but is still down 4% to 33 cents.

Why is the Core Lithium share price sinking lower?

Investors have been selling the company’s shares this morning after it announced firm commitments for its $40 million placement.

According to the release, the company is raising the funds through the placement of 160 million new shares to institutional investors at 25 cents per share. This represents a 27.5% discount to its last close price.

The company advised that demand for the placement was very strong and the shares will be issued to a select group of new high-quality institutional investors. These investors are primarily located in North America, Europe, and Australia and are aligned with the company’s vision of soon becoming Australia’s next lithium producer.

The proceeds from the placement will be used to support the efficient advancement of the 100% owned Finniss Lithium Project towards development and a potential Final Investment Decision (FID).

In addition, some of the proceeds will be used for resource growth drilling. This drilling is aiming to increase mine life to support expanded and extended project revenues.

“Overwhelming support”

Core’s Managing Director, Stephen Biggins, commented: “We are very pleased with the overwhelming global support received for our plans to develop the Finniss Lithium Project. This has transferred directly into institutional demand for the Placement, which was very well supported, and Core welcomes the addition of some of the world’s most respected funds as shareholders.”

“Since the end of 2020, the global lithium and greater renewable technology sectors have shown stark improvements and we continue to monitor these industry changes closely, with a view to making key decisions for Finniss at the right time. Core welcomes new shareholders to the business and we strongly appreciate the continued support of our existing shareholders as we aim to join the ranks of Australia’s lithium producers.”

Also raising funds today was Vulcan Energy Resources Ltd (ASX: VUL). This morning the lithium miner announced the receipt of firm commitments for its $120 million placement.

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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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Video game retailer GameStop (NYSE: GME) is shaking up its executive offices. The company just hired a chief technology officer (CTO) with recent experience from Amazon (NASDAQ: AMZN) Web Services (AWS). Two additional executive appointments will bolster GameStop’s expertise in customer care and shipping services.

Who’s who?

Matt Francis will become GameStop’s CTO on Feb. 15, having led the DocumentDB database team at AWS over the last year. His CV also includes seven years of e-commerce operations at clothing retailer Zulily and a cloud-oriented data center setup for real estate start-up FlyHomes. His job description at GameStop involves managing the company’s technology and e-commerce assets and operations.

Two other executives will join GameStop on March 1:

• Order fulfillment specialist Josh Krueger becomes GameStop’s vice president of fulfillment, with a background of similar titles from Amazon and Zulily. More recently, Krueger served as VP of logistics for shopping channel QVC. Earlier, he led the fulfillment division of media and retail conglomerate Qurate Retail Group, which is the parent company of both Zulily and QVC. He will oversee GameStop’s e-commerce shipping and fulfillment centers.
• Kelli Durkin will be GameStop’s senior VP of customer care, managing the company’s overall customer service and engagement activities. She built a high-quality customer service division at pet toys specialist Chewys over the last nine years. She reported directly to Chewy’s co-founder Ryan Cohen for several years. Cohen’s investment fund RC Ventures is one of GameStop’s largest shareholders, controlling 12.9% of the company’s voting stock.

Krueger and Francis have worked together before in various e-commerce environments and Durkin represents RC Ventures’ vision of a growing e-commerce version of GameStop’s traditional retail business. It’s not exactly a revolution in GameStop’s executive offices, but these appointments might be the start of a different long-term plan.

 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price has returned from its trading halt and is pushing higher on Thursday.

In early trade, the clean lithium company’s shares are up 14% to $8.94.

Why is the Vulcan share price storming higher?

Investors have been buying Vulcan shares on Thursday after it announced the receipt of firm commitments for its $120 million placement to sophisticated, professional, and institutional investors. These funds are being raised at $6.50 per new share, which is a 17% discount to its last close price.

According to the release, the placement was strongly supported by international and domestic ESG-focused institutions. One of those was cornerstone investor, Hancock Prospecting.

The release refers to Hancock Prospecting as one of the most successful private companies in Australian history and a leader in the resources industry. It is of course led by Executive Chair, Gina Rinehart.

In addition to this, the company notes that a significant investment was provided by the BNP Energy Transition Fund, a European ESG-focused institution.

Why is Vulcan raising funds?

Management advised that proceeds from the placement will be used to support Vulcan through to the final investment decision at its Zero Carbon Lithium Project in Germany.

It intends to use a good portion of the funds for project development, feasibility study costs, and permitting. In addition, funds will be allocated to drill site acquisition and preparation, as well as strategic opportunities to accelerate project development.

Upon settlement, Vulcan will have a cash balance (before placement costs) of ~A$125 million.

Vulcan’s Managing Director, Dr. Francis Wedin, commented: “We received overwhelming support for the Placement from both domestic and international ESG-focused institutional investors. This demonstrates clear support for our strategic plan to develop the world’s first Zero Carbon Lithium project.”

“Proceeds from the Placement provide us with a runway to final investment decision and enables Vulcan to accelerate project development, including targeted delivery of a DFS by Q2 2022.”

“The Board and management would like to thank existing shareholders for their continued support and also welcome a number of new, high quality ESG-focused institutions to the share register, including the BNP Energy Transition Fund, in what is the beginning of an exciting journey for Vulcan. We would also like to extend a special welcome to Hancock Prospecting Pty. Ltd. who joins our register as a substantial shareholder, and we look forward to working with them,” he concluded.

More reading

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• What’s with the Vulcan (ASX:VUL) share price today?
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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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Shares in ASX healthcare company Polynovo Limited (ASX: PNV) almost doubled in price last year. And, despite a shaky start to 2021, at their current price of $2.62 they are still up over 100% versus their March 2020 low of $1.275.

For investors willing to weather the volatility in the share price, Polynovo has delivered some significant gains – it wasn’t all that long ago that the company’s shares were trading consistently below $1, and in December they touched a record high of $4.08.

But there is another under-the-radar junior biotech company currently trading on the ASX that operates in the same sector as Polynovo.

New Zealand-based healthcare company Aroa Biosurgery Limited (ASX: ARX) listed on the ASX in July last year after raising $45 million at $0.75 a share. The Aroa share price has already surged 63% higher than its IPO price to $1.22 as at the time of writing, meaning the company now has a market cap of a touch under $367 million.

What does Aroa do?

Like Polynovo, Aroa specialises in the development of biodegradable medical devices that aid in skin tissue repair. Aroa’s flagship product is called Endoform and is originally derived from a sheep’s forestomach. When applied to complex wounds and severe skin injuries, Endoform aids in tissue repair and regeneration, encouraging new skin growth.

Aroa claims its product has delivered superior results versus current market leaders across a range of qualitative factors in preclinical studies. It also claims its product is 20% to 60% less expensive than those of its competitors.

Recent news out of the company

In its most recent market update, covering the December quarter, Aroa reported quarterly cash receipts of NZ$5.9 million, an uplift of 44% over the September quarter, reflecting an improvement in market conditions. Despite the challenges posed by COVID-19, the company – which reports its financial results based on the New Zealand financial year ending 31 March – believes it is still on track to deliver revenue growth for the second half of FY21 versus second half FY20.

It also announced that Endoform, as well as another of its regenerative tissue solutions, Myriad, had received regulatory approval in India. Aroa estimates that the advanced wound care market in India was valued at between US$225 million and US$485 million in 2020.

Outlook

With only the March quarter left in FY21 for Aroa, it believes it is on track to deliver revenue of NZ$21 million for the year on a constant currency basis. This would be slightly below its FY20 revenue of NZ$22 million.

However, the company is expanding. Now that it has secured regulatory approvals to distribute its products in India, it is appointing a distribution team and plans to begin rolling out its products in the second half of this calendar year.

For its part, Aroa is feeling bullish about its future prospects. The company is in the process of expanding its manufacturing facility in order to meet the expected rise in demand for its products over the next 3 years. And, in an announcement released to the market earlier this week, the company stated that it planned to expand its direct sales team in the US, in a move “expected to positively impact medium-term sales”.

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Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO 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.

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The Nick Scali Limited (ASX: NCK) share price is climbing today following the release of its half-year results for 2021.

In opening trade, the furniture retailer’s shares are up 2.45% at $10.86.

What’s driving the Nick Scali share price?

The Nick Scali share price is climbing this morning after the company announced growth in all key metrics.

According to its release, Nick Scali delivered an exceptional six months of trading despite disruptive first-half trading conditions.

For the period ending 31 December, the company reported total sales revenue of $171.1 million. This reflected a record amount, and an increase of 24.4% on the previous $137.5 million attained in H1 FY20. Positive trading momentum continued across Australia and New Zealand complemented by growth in online shopping and new store openings.

Underlying net profit after tax (NPAT) came in at $40.5 million, up 89.9% on the prior corresponding period (pcp). This was in line with Nick Scali’s recent guidance announced on 5 January, 2021.

Earnings before interest, tax, depreciation and amortisation (EBITDA) soared to $60.2 million, reflecting a jump of 94.2% on the pcp.

Operating cash flow before interest and tax improved to $53.5 million due to a negative working capital model that led to larger profits. As a result, the company leaped over the same time last year metric which recorded $16.6 million, up 222.3%.

Underlying basic earnings per share (EPS) also rose to 50 cents against the comparable period which saw EPS at 25.1 cents.

The board declared a fully-franked interim dividend of 40 cents to be paid to eligible shareholders on 30 March, 2021. This accounts to a payout ratio of 80% compared H1 FY20’s payout ratio of 90% (25 cents paid to shareholders).

Nick Scali declared a healthy cash balance of $87.6 million on hand with minimal debt obligations.

Management commentary

Nick Scali managing director Anthony Scali welcomed the results, saying:

The first half of financial year 2021 had many challenges to navigate including government mandated store closures, supply chain issues and significant delays experienced with global shipping providers.

Despite these events, the team was able to capitalise on shifting consumer spending patterns and deliver a record result for the company.

Outlook

Looking ahead, Nick Scali expects its sales order growth to continue to run into the second half of FY21 period. In January alone, written sales orders increased by 47% on the pcp, representing the company’s largest trading month to date.

However, Nick Scali noted that extended lead times caused by delays in its supply chain process has been challenging. Furthermore, shipping constraints due to COVID-19 has made it difficult for the company to provide revenue guidance for H2 FY21.

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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 Westpac Banking Corp (ASX: WBC) share price is pushing higher following the release of an announcement.

In morning trade, the banking giant’s shares are up 0.5% to $21.84.

What did Westpac announce?

This morning Australia’s oldest bank announced a new addition to its board.

According to the release, Westpac has appointed Dr Nora Scheinkestel LLB (Hons), PhD, FAICD as an independent non-executive director with effect from 1 March 2021.

Dr Scheinkestel will become a member of the Board Risk Committee and the Board Remuneration Committee upon her appointment.

The release explains that Dr Scheinkestel is a highly experienced company director, having served as a non-executive director across a range of public and private companies and government boards. She has also been a member of the Takeovers Panel.

At present, Dr Scheinkestel is a non-executive director of Telstra Corporation Ltd (ASX: TLS), Brambles Limited (ASX: BXB), and AusNet Services Ltd (ASX: AST). She is also an Associate Professor in the Melbourne Business School at the University of Melbourne.

Prior to her Board roles, Dr Scheinkestel was a senior banking executive and lawyer specialising in Australian and international project finance.

Westpac’s Chairman, John McFarlane, commented: “We are very pleased to welcome Nora to the Board. Nora has extensive board experience across a range of industries and her financial and risk management expertise and deep understanding of governance will complement the Board’s collective skills.”

Heading to the exits is Craig Dunn, who intends to retire from the board at the conclusion of the bank’s annual general meeting.

Commenting on Mr Dunn’s exit, Mr McFarlane said: “I would like to thank Craig for his ongoing contribution to Westpac. Craig has been an integral member of the Board and an outstanding shareholder representative. Craig will retain his current Board Committee roles while ensuring a smooth transition of the Remuneration Committee Chair prior to his retirement.”

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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.

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The Alliance Aviation Services Ltd (ASX: AQZ) share price is surging higher today following the release of an announcement.

At the time of writing, the airline operator’s shares are up 13% to a record high of $4.44.

What did Alliance Aviation announce?

This morning Alliance Aviation announced that it has executed an agreement with Qantas Airways Limited (ASX: QAN) for the provision of E190 capacity to the airline giant.

According to the release, the wet lease agreement initially provides for three E190 aircraft to commence operations in mid-2021. It also includes options for Qantas to call on an additional eleven aircraft based on market conditions.

A wet lease agreement is one where the lessor provides an entire aircraft and at least one crew member.

The agreement is for an initial period of three years and the aircraft will be based in Adelaide and Darwin servicing the Adelaide–Alice Springs, Darwin–Alice Springs, and Darwin–Adelaide routes.

The company advised that this transaction is material. It is expected to account for in excess of 5% of total revenue once the first three aircraft have been fully deployed.

An exciting transaction

Alliance’s Managing Director, Scott McMillan, said: “This is an exciting transaction for Alliance and further extends on previous wet leasing arrangements that Alliance has had with Qantas since 2012.”

“This further cements Alliance as the pre-eminent wet lease operator in Australia and the Pacific and confirms Alliance’s view that the circa 100 seat regional jet will be the sweet spot in the global aviation market’s post-COVID-19 recovery.”

“We look forward to providing Qantas with our renowned high-quality service and operational reliability. It is also pleasing to be able to provide new job opportunities in the Australian aviation landscape, as well as for our existing staff and potentially some Qantas Group staff who would normally be flying internationally,” he concluded.

Alliance acquired thirty E190 aircraft recently with the aim of deploying a significant number of them as wet lease operations.

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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 AGL Energy Limited (ASX: AGL) share price is sinking lower on Thursday morning.

At the time of writing, the energy company’s shares are down 3.5% to $11.45.

Why is the AGL share price sinking lower?

Investors have been selling AGL’s shares following the release of an announcement this morning.

According to the release, the company intends to recognise charges of $2,686 million (post-tax) in its financial statements for the first half of FY 2021.

The release explains that these charges reflect $1,920 million in provisions for onerous contracts relating primarily to legacy wind farm offtake agreements.

In addition to this, charges have been made for increases to environmental restoration provisions of $1,112 million and further impairments of $532 million across AGL’s Generation Fleet and Natural Gas assets. These are net of a positive tax effect of $878 million.

What is driving the charges?

Management advised that these charges follow an accelerated deterioration to long-term wholesale energy market forecasts in recent months. This is reflective of policy measures to underwrite new build of electricity generation and lower technology costs, leading to expectations of increased supply.

As a result of the above, the long-term outlook for wholesale electricity and renewable energy certificates is now pointing to a sustained and material reduction in prices.

Combined with sharp reductions in near-term wholesale energy prices as a result of challenging macroeconomic conditions, and the outcomes of its three-yearly review of environmental restoration provisions, management has reduced the valuation of its Generation Fleet cash generating unit.

While these charges are undoubtedly disappointing, AGL‘s Managing Director and CEO, Brett Redman, remains positive on the future.

He commented: “As Australia’s largest energy retailer and largest generator of electricity, we continue to see material opportunities for AGL to participate in the energy transition as customer needs, community expectations and technology evolve. Notwithstanding these charges, our broad and diverse portfolio of electricity generation assets will continue to have a vital role to play in enabling the transition of the energy system.”

Finally, as AGL’s underlying profit after tax excludes significant items, it has maintained its full year guidance of $500 million to $580 million.

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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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