Tag: Motley Fool

The GenusPlus Group (ASX: GNP) share price is flying today following the announcement of two contract awards. At the time of writing, the company’s shares are up 6.93% to $1.08.

Based in Perth, GenusPlus is an end-to-end service provider for essential power and telecommunications infrastructure, and technical services. Its major clients include BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Optus.

What’s driving the GenusPlus share price higher?

In this morning’s release, GenusPlus advised it has secured construction contracts within the resource and power industry.

The company’s subsidiary, ECM, will conduct a number of works on two separate projects. It estimated that the combined value of the contracts is around $20 million.

Working alongside Ahrens Group, the first deal will see ECM deliver a range of services to BHP’s South Flank Project. This includes electrical, communications, technology and fire works for non-process infrastructure. ECM will begin work on the project immediately, with an expected completion date before mid-2021.

The second contract is for the Kwinana Waste to Energy Project built by Acciona Construction Australia & John Beever. ECM will conduct electrical and instrumentation works at the site, due to be finalised by the end of the year.

Jointly developed by Phoenix Energy and Macquarie Capital, the Kwinana Waste to Energy Project will be Australia’s first thermal waste-to-energy facility. Located in Perth, the project will turn around 400,000 tonnes of household and industrial waste into clean energy. The electricity generated will be able to power roughly 50,000 households, while offsetting 400,000 tonnes of CO2 emissions per year.

What did management say?

GenusPlus managing director David Riches welcomed the deal, saying:

It’s particularly pleasing to see ECM be awarded the Kwinana Waste to Energy Project. It is a major milestone in the consolidation and re-positioning of ECM and reinforces the Genus strategy of a broader offering in its key markets.

More reading

• Why the Sky Network (ASX:SKT) share price will be on watch today
• Tesla finally recalls 134,951 vehicles for defective touchscreens
• Why the Botanix (ASX:BOT) share price is rocketing 31% higher today
• 3 forgotten ASX stocks left behind in the car sales recovery
• Here’s what could really feed a stock market bubble

Motley Fool contributor Aaron Teboneras owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the GenusPlus (ASX:GNP) share price is surging 7% today appeared first on The Motley Fool Australia.

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

The Sky Network Television Limited (ASX: SKT) share price will be on watch this morning. This comes after the company announced provided a business update in regards to its full year 2021 performance.

At market close yesterday, the Sky Network share price finished the day at 14.5 cents.

Sky upgrades guidance

The Sky share price will be in focus this morning after the company provided investors with a positive update.

According to its release, Sky advised that strong trading conditions have continued to run throughout the second-half of FY21. Management noted that it has diligently implemented cost saving measures as well as seen an uptick in satellite and streaming revenues.

As a result, the company upgraded its guidance again for the full year from its November earnings forecast announcement. The company projects revenue for FY21 to be in the vicinity of $695 million to $715 million. This is an increase on the previous $680 million to $710 million in revenue estimated.

In addition, earnings before tax, interest, depreciation and amortisation (EBITDA) is expected to come between $170 million to $182.5 million. On November forecasts, Sky was anticipating EBITDA to be in the range of $140 million to $155 million.

Net profit after tax (NPAT) is assumed to increase around $37.5 million to $45 million. Originally NPAT planned to lay between $20 million to $30 million.

Capital expenditure is expected to remain unchanged at $45 million to $55 million.

As a whole, Sky revealed that the revised guidance includes the proposed sale of its OSB assets to NEP New Zealand. Indeed, the one off transaction cost is sure to bump up the Sky’s coffers. Completion of the deal is currently with New Zealand’s government agency, Commerce Commission. It’s assumed that the sale process will be given the green light in the near future.

The company is scheduled to release its full year results on 23 February, 2021.

Management commentary

Sky Chief Executive, Sophie Moloney, hailed the continued positive momentum, saying:

It is particularly encouraging to see improvements in our satellite customer loyalty alongside further growth in our streaming revenues. Reducing Sky’s ongoing operating costs remains in sharp focus while we continue to deliver the content that our customers value in ways that work for them.

How has the Sky share price performed?

The Sky share price has tumbled over the past 12 months, reflecting losses of almost 80% for shareholders.

The company’s shares reached a high of 67 cents this time last year, and has treaded lower ever since.

In March, its shares fell to an all time low of 11.5 cents due to COVID-19 disrupting Sky’s revenues and outlook.

Based on the current share price, Sky commands a market capitalisation of roughly $257 million.

More reading

• Tesla finally recalls 134,951 vehicles for defective touchscreens
• Why the Botanix (ASX:BOT) share price is rocketing 31% higher today
• 3 forgotten ASX stocks left behind in the car sales recovery
• Here’s what could really feed a stock market bubble
• Here’s why the Lithium Australia (ASX:LIT) share price is zooming 30% higher

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

The post Why the Sky Network (ASX:SKT) share price will be on watch today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3tn067B

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

After years of bickering with regulators, Tesla (NASDAQ: TSLA) has finally begun recalling over 100,000 vehicles with faulty touchscreen systems. 

Tesla has begun the process of notifying owners of Model S sedans made between 2012 and 2018, and Model X SUVs made between 2016 and 2018 — 134,951 vehicles in all — that it will replace the vehicles’ touchscreen systems with upgraded parts. 

The news was first reported by Electrek, which obtained a copy of the email Tesla sent to vehicle owners. 

Owners of older Teslas have reported issues with the touchscreens that control many of their vehicles’ functions. (Tesla calls the touchscreen systems “MCUs,” for “media control units.”) Over time, the screens can become slower to respond, sometimes freezing up while underway — and occasionally, failing entirely.

Tesla’s touchscreen systems incorporate key vehicle functions, including the backup cameras and climate-control systems like defrosters. The U.S. National Highway Traffic Safety Administration (NHTSA) determined last month that the MCU defect is a safety issue and asked Tesla to recall the affected vehicles.

The email from Tesla said that the problem is with an 8 gigabyte MultiMediaCard, or eMMC, built into the MCU that can malfunction over time. The company said that it will replace the affected vehicles’ MCUs with upgraded units that incorporate a 64 gigabyte eMMC. However, owners will have to wait until the upgraded parts are available, the company said. 

Tesla had not yet disclosed the estimated cost of the recall at press time. 

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

More reading

• GameStop (NYSE:GME) dominates the US shares ASX investors have been buying
• GameStop chaos: Love always wins over shorting
• Don’t fall for Elon Musk’s self-driving car fallacy
• Why Tesla stock fell on Thursday
• Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today

John Rosevear has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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 Tesla finally recalls 134,951 vehicles for defective touchscreens appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3j8FzPG

The Botanix Pharmaceuticals Ltd (ASX: BOT) share price has returned from its trading halt with a bang on Wednesday.

In morning trade, the clinical stage synthetic cannabinoid company’s shares are up 31% to a record high of 19 cents.

Why is the Botanix share price rocketing higher?

Investors have been fighting to buy Botanix shares this morning following the release of an announcement in relation to its BTX 1801 Phase 2a nasal decolonisation proof of concept study.

According to the release, top-line data from the study shows that two different BTX 1801 formulations (ointment and gel containing synthetic cannabidiol) were safe, well tolerated, and successful at eradicating Staphylococcus aureus (Staph) bacteria from the nose of healthy participants that were nasally colonised with Staph.

The release explains that the primary objectives focused on evaluating safety and tolerability, as well as evaluating the effectiveness of two different candidate formulations of BTX 1801.

Each formulation was applied twice daily for five consecutive days to the inner surface of the nose and compared to respective vehicle or placebo formulations without synthetic cannabidiol.

At day seven, Staph eradication was demonstrated in 76.2% and 68.8% of the participants in the BTX 1801 ointment and gel groups respectively, compared with just 27.8% of participants in the combined vehicle groups.

On day 12, which was seven days after the end of the treatment period, BTX 1801 demonstrated Staph eradication in 38.1% of participants in the ointment group and 25% in the gel group. This compares to 16.7% for the combined vehicle groups.

Why is this important?

The company notes that antibiotic resistance is a significant global challenge in the context of public health. In fact, the UN is forecasting that drug resistant diseases could cause 10 million deaths each year by 2050 and result in an annual economic loss of US$100 trillion if new solutions are not found.

Furthermore, Staph and methicillin-resistant Staph (MRSA) are the leading cause of Surgical Site Infections (SSIs) and approximately 80% of SSIs are caused by the patient infecting themselves from their own nose.

Antibiotics used for nasal decolonisation, such as Bactroban, have seen a significant increase in the development of resistance, with some hospitals restricting its use after recording resistance rates as high as 95%.

This opens the door for new treatments to be developed to tackle these issues. Botanix appears hopeful synthetic cannabidiol could be the answer.

Botanix President and Executive Chairman, Vince Ippolito, commented: “We are very pleased to announce this top-line data that demonstrates synthetic cannabidiol (CBD) is a safe and effective nasal decolonisation agent. Moreover, this is the first time that synthetic CBD has been shown to have clinical utility as an antimicrobial agent in humans.”

“These results support continued development of BTX 1801 for the treatment of a variety of infections, in addition to the prevention of post-surgical infections,” he added.

More reading

• Why the Botanix (ASX:BOT) share price is flying 6%
• Why the Botanix (ASX:BOT) share price rocketed 22% to a record high 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.

The post Why the Botanix (ASX:BOT) share price is rocketing 31% higher today appeared first on The Motley Fool Australia.

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

ASX auto stocks have zoomed ahead of the market in the COVID-19 recovery trade but there’s one group that’s been left behind.

These stocks are also leveraged to the rebound in car sales – a theme that sent the Eagers Automotive Ltd (ASX: APE) share price and ARB Corporation Limited (ASX: ARB) share price soaring.

Car dealership Eagers Automotive raced ahead by 50% over the past year.  Four-wheel drive accessories group ARB did even better. The ARB share price doubled in value over the same period.

ASX novated stocks next to be on upgrade cycle

But many investors seem to have overlooked ASX novated leasing stocks. The McMillan Shakespeare Limited (ASX: MMS) share price is trading flat while the Eclipx Group Ltd (ASX: ECX) added around 12%.

This valuation gap may not last, according to Morgan Stanely. It isn’t only demand for cars that’s driving its bullish take on the sector.

The broker believes ASX novated stocks are on the cusp of an upgrade cycle and they are sitting on undemanding valuations.

Regulatory risk drag is easing

“Regulatory risk has been an overhang on the novated group in recent years, but we see clarity,” said Morgan Stanley.

“The passage of the deferred sales model legislation de-risks novated earnings and removes regulatory uncertainty.”

The proposed legislation is unlikely to have a material impact on earnings of novated leasing companies.

3 drivers boosting the sector

Morgan Stanley highlights three factors that make the sector a buy. It noted that that car sales cycle is stabilising and starting to turn after three years of consecutive monthly declines. Car sales suffered its worst year in 17 years in 2020.

The sector is also trading on FY22 forecast price-earnings (P/E) of between 10 and 11 times. That’s low given that earnings are recovering.

Finally, the broker thinks the recent earnings guidance provided by McMillan Shakespeare and Smartgroup Corporation Ltd (ASX: SIQ) marks the start of the earnings upgrade cycle for the sector.

If anything, Eclipx Group and SG Fleet Group Ltd (ASX: SGF) could issue a profit upgrade later this month.

ASX stocks to buy today

Morgan Stanley is recommending investors buy the ECX share price, MMS share price and SGF share price.

The broker rates the SIQ share price as “equal weight” (equivalent to a “hold”).

More reading

• Why these brokers think today’s Eagers Automotive (ASX:APE) share price is a bargain
• McMillan (ASX:MMS) share price on watch today. Here’s why
• Brokers list the latest ASX shares to buy in this market meltdown
• Why the Eagers Automotive (ASX:APE) share price is on watch today
• ASX 200 falls 0.6%

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia has recommended ARB Limited and SMARTGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 forgotten ASX stocks left behind in the car sales recovery appeared first on The Motley Fool Australia.

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

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.

The stock market roared ahead on Tuesday morning, as recent fears from late last week faded completely into the background. As of just before 11.30am EST Tuesday, the Dow Jones Industrial Average (INDEXDJX: .DJI) had soared 587 points to 30,799. The S&P 500 Index (INDEXSP: .INX) had gained 63 points to 3,837, and the Nasdaq Composite (INDEXNASDAQ: .IXIC)  climbed 185 points to 13,588.

Many people within the investment community have looked askance at the short squeeze that has hit GameStop (NYSE: GME) and other stocks recently. GameStop shares fell dramatically Tuesday morning, losing 45% of their value. Many expect the stock price to drop still further, undoing the gains that the video game retailer has seen over the past few weeks.

Yet there’s something else that happened yesterday that has far larger implications for the stock market. By itself, it’s a small thing. But it’s only the latest example of how companies are boosting the risk levels in their stocks in order to drive short-term returns – and the move could backfire in the long run.

Apple levers up

The key piece of news came from Apple Inc (NASDAQ: AAPL). The tech giant sold a total of $14 billion in debt, with several different maturities. Here were the final terms:

• $2.5 billion in five-year notes priced to yield about 0.75%.
• $2.5 billion in seven-year notes priced to yield just under 1.25%.
• $2.75 billion in 10-year notes with a yield of 1.65%.
• $1.5 billion in 20-year notes yielding just under 2.40%.
• $3 billion in 30-year notes with a yield of almost 2.70%.
• $1.75 billion in 40-year notes yielding just over 2.80%.

The offering was substantially oversubscribed. Investors flocked to try to grab even these relatively low yields, with more than $33 billion in orders.

This was the third time that Apple had tapped the credit markets in less than a year. A May 2020 bond sale raised $8.5 billion, while the iPhone maker raised another $5.5 billion last August.

What’s the problem?

Apple’s explanation for the capital raise was consistent with what you’d see from any other company. The tech giant said it expects to use the money for general corporate purposes. Investors expect a big chunk of it to go toward dividend payments and stock repurchases.

But the strange thing about the offering is that Apple has absolutely no need for additional cash. The company reported nearly $77 billion in cash and short-term equivalents as of the end of 2020.

The move continues a long trend for Apple. As recently as 2013, It had less than $17 billion in total outstanding long-term debt. That number had multiplied nearly sixfold to just under $100 billion at the end of last year. This bond offering will take Apple’s debt well into 12 figures.

In the early 2010s, there was at least a reasonable explanation for the debt offering. Much of Apple’s cash was locked overseas, and there would be huge tax consequences from repatriating it and paying it to shareholders. But the 2018 tax reform efforts ended that concern.

Instead, what’s now happening is that Apple is boosting its leverage. By buying shares and increasing debt levels, any future growth will get magnified in terms of per-share earnings performance.

A ticking time bomb?

Many will argue that Apple is just about the safest company in the business world to use this strategy. They’d largely be right. Taking advantage of rock-bottom interest rates to lever up one’s business makes perfect sense as long as you believe you can generate better returns with that cash than you’re paying in interest.

The problem, though, could come when other companies follow Apple’s lead. Not every business has the staying power that Apple has, and if fortunes change, paying down that debt might prove difficult. History has seen countless examples of companies borrowing to buy back stock, only to have to turn right around and sell shares at much lower prices to repay debt during tough times.

Low interest rates are tempting, and companies that can prudently use them to finance growth opportunities are smart to do so. But borrowing just to buy back stock is a step in the wrong direction, and it pushes up the risk levels even for high-quality stocks like Apple. Moreover, the trend could feed rises in stock prices that could increase the chance of a stock market bubble in the near term.

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

More reading

• Facebook declares war on Apple
• GameStop (NYSE:GME) dominates the US shares ASX investors have been buying
• Why investors should look beyond the Reddit army to these ASX fundamentals
• Why ASX silver shares like Silver Mines (ASX:SVL) are falling today
• Can the Reddit army save the plunging Unibail (ASX:URW) share price today?

Dan Caplinger owns shares in 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.

The post Here’s what could really feed a stock market bubble appeared first on The Motley Fool Australia.

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

from The Motley Fool Australia https://ift.tt/3awWvv8

The Lithium Australia NL (ASX: LIT) share price has been a strong performer on Wednesday morning.

At the time of writing, the lithium company’s shares are zooming 30% higher to 17.5 cents.

Why is the Lithium Australia share price zooming higher?

Investors have been buying Lithium Australia shares this morning after it provided an update on its SiLeach process.

According to the release, the company’s SiLeach patent application has been granted by United States Patent and Trademark Office. This provides the company with 17 years legal protection in the country.

Management feels the granting of this application is vindication of the value of its intellectual property in a jurisdiction known for its tardiness in approving patent applications.

In addition to this, the company notes that it has been accepted by IP Australia and patent application claims are considered allowable by European Patent Office.

What is SiLeach?

Lithium Australia’s Managing Director, Adrian Griffin, explained what the SiLeach process is.

He said: “Lithium Australia’s revolutionary SiLeach process unlocks the value in lithium-bearing clays and micas. The Sileach process can produce a range of lithium chemicals, including lithium hydroxide, lithium carbonate and lithium phosphate. Significantly, the use of lithium phosphate is the shortest route to the production of lithium ferrophosphate (LFP) batteries, which is also advantageous from an environmental, social and governance perspective.”

Mr Griffin believes the granting of the patent is timely.

He commented: “Granting of the US SiLeach patent is timely, given increased interest in the extraction of lithium from clays in north America … and even more so now that LFP is the most rapidly expanding sector of the lithium-ion battery industry.”

“The lithium and phosphorus required to manufacture LFP are both produced by SiLeach as a single lithium chemical. We invite anyone with a lithium mica or clay deposit to reach out and see what we can offer; also, cathode producers interested in discussing a more direct route to LFP synthesis using our proprietary VSPC cathode powder production technology,” he concluded.

More reading

• Zip and Vulcan were among the most traded ASX shares last week
• 5 lithium shares that are fast-charging up in 2021
• Here’s why the Lithium Australia (ASX:LIT) share price is up 6% in morning trade
• Why Galan Lithium (ASX:GLN) and Lithium Australia (ASX:LIT) shares are storming 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.

The post Here’s why the Lithium Australia (ASX:LIT) share price is zooming 30% higher appeared first on The Motley Fool Australia.

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

In morning trade the Afterpay Ltd (ASX: APT) share price is pushing higher again.

At the time of writing, the payments company’s shares are up 2% to $149.43 and closing in on a new record high.

Why is the Afterpay share price pushing higher?

Investors have been buying the company’s shares for a couple of reasons on Wednesday.

One is another very strong night of trade on Wall Street’s Nasdaq index. The technology-focused index jumped 1.6% higher overnight after investor sentiment improved as GameStop trading started to fizzle out.

Also giving its shares a lift was the release of an update on its UK-based Clearpay business. This was in response to the Woolard Review proposal, which is aiming to bring the buy now pay later (BNPL) industry under Financial Conduct Authority (FCA) oversight with proportionate regulation.

What did Afterpay announce?

According to the release, Clearpay has welcomed the publication of the Woolard Review. It notes that the report acknowledges the varied nature of the market and that the UK BNPL industry needs proportionate regulation to protect consumers going forward.

Clearpay stated that it has always supported fit for purpose regulation that recognises the diversity of the industry and the desire from consumers for flexible payment options that don’t trap them in with long term debt.

Clearpay’s EVP of Public Policy, Damian Kassabgi, commented: “We welcome today’s recommendations and look forward to working with the FCA, the government and stakeholders to build on the consumer protections we already provide to create the applicable regulation for the sector.”

“It has always been Clearpay’s view that consumers will be best served by products designed with strong safeguards and appropriate industry regulation with oversight from the FCA. We are pleased that many of the suggestions we put forward in our submission to the Woolard review have been acknowledged and that the review has recognised the diverse nature of the industry,” he added.

Afterpay has faced this sort of review previously in Australia and came out on top. Investors will no doubt be optimistic it will be a similar story in the UK.

More reading

• The growth of this BNPL ASX share has been outpacing Afterpay (ASX:APT)
• ASX 200 jumps 1.5%, RBA doubles QE, Afterpay soars
• Why Afterpay, Credit Corp, Healius, & Volpara shares are storming higher
• ASX 200 up 0.9%: Credit Corp impresses, Afterpay jumps, bank shares rise
• GameStop chaos: Love always wins over shorting

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Why the Afterpay (ASX:APT) share price is pushing higher again appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39Hsqdp

The BWP Trust (ASX: BWP) share price is on the move on Wednesday following the release of its half year update.

At the time of writing, the commercial property company’s shares are up 1% to $4.33.

How did BWP perform in the first half?

This morning the Bunnings landlord delivered a half year result that was largely flat on the prior corresponding period.

For the six months ended 31 December, BWP reported revenue of $76.1 million, which compares to $76.25 million for the same period last year.

It was a similar story for its profit before gains on investment properties, which came in at $56.9 million. This compares to $57.15 million a year earlier.

However, its overall profit for the first half climbed 6% over the prior corresponding period to $144 million. This was driven by an 11% increase in gains in the fair value of investment properties to $2.6 billion. The latter was in line with the value of its properties at the end of FY 2020.

In light of its flat profit before gains on investment properties, the BWP board has opted to maintain its interim distribution at 9.02 cents per unit. This was in line with management’s guidance for flat distributions in FY 2021.

What about other metrics?

At the end of the period, BWP reported like-for-like rental growth of 2% for the 12 months to 31 December 2020.

It finished the period with a weighted average lease expiry of 4.3 years, with 97.4% of its properties leased.

BWP’s gearing (debt/total assets) stood at 17.8% and its weighted average cost of debt was 3.2% per annum for the six-month period.

Outlook

Management advised that the company is well positioned in the current COVID-19 environment due to the significant majority of its rental income coming from Bunnings and other national large format retailers. It notes that these are all trading well during this time.

Rent reviews are expected to contribute incrementally to property income for the second half. It advised that there are 41 leases to be reviewed to the CPI or by a fixed percentage increase during the second half of FY 2021. There are also 19 market rent reviews of Bunnings Warehouses that remain unresolved and are in the process of being finalised.

In addition, it expects demand for Bunnings Warehouse properties to remain relatively stable in the near-term given the current low interest rate environment and the strength of the Bunnings covenant.

BWP’s primary focus for the remainder of FY 2021 will be on leasing vacancies in the portfolio, progressing store upgrades, and extending existing leases with Bunnings through the exercise of options.

Once again, management reiterated that it expects its full year distribution to be similar to the one paid in FY 2020. Though, it warned that its distribution may be reviewed in the event that COVID-19 impacts are more severe or prolonged than anticipated.

More reading

• These ASX dividend shares offer attractive yields
• 2 high quality ASX shares for your retirement portfolio
• 2 reliable ASX dividend shares for income investors to buy
• These ASX dividend shares could solve your income needs
• 2 ASX dividend shares for income investors

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 Here’s why the BWP (ASX:BWP) share price is heading higher today appeared first on The Motley Fool Australia.

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

If you have some cash to invest into ASX shares then there could be some businesses worth looking into right now.

Here are three businesses thinking about:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an electronic donation ASX share that facilitates payments to large and medium US churches.

The company’s role is not only to be a payments processor, but it also has a number of church management systems for the church to use, as well as offering a community app for the church.

One of the most useful tools is a livestreaming option which has been helpful during this period of the COVID-19 pandemic.

Over the long-term Pushpay is hoping to reach a 50% market share of this industry, which could translate into US$1 billion of annual revenue.

The ASX share is proving to be very scalable with how fast its profit margins are increasing. In most recent result, the FY21 half-year result, it saw its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin rise from 17% to 31%. That result also saw operating revenue growth of 53%, EBITDAF growth of 177% and operating cashflow growth of 203%.

In a recent update, Pushpay upgraded its FY21 EBITDAF guidance again to a range of US$56 million to US$60 million.

At the current Pushpay share price, it’s valued at 21x FY23’s estimated earnings.

Bubs Australia Ltd (ASX: BUB)

Bubs is an infant formula company that specialises in goat milk products. It also has adult goat dairy products, grass-fed cow milk infant formula and a vitamins and minerals supplement range.

The ASX share recently gave its quarterly update for the three months to 31 December 2020 which showed a recovery of revenue in many categories compared to the first quarter of FY21.

Quarterly revenue went up 36% quarter on quarter to $12.8 million, though total revenue dropped 12% compared to last year.

Export sales to markets outside of China continued to see rapid growth, with revenue rising 194% quarter on quarter.

The corporate daigou trade was still softer than pre-COVID-19 levels, but it was up 122% on the first quarter.

Bubs boasted that it was fastest growing infant formula manufacturer across Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Chemist Warehouse with combined retail scan sales growth at the checkout of 41% quarter on quarter.

The Bubs infant nutrition portfolio, which represented 57% of total second quarter revenue, saw sales increase by 27%.

Bubs’ goat dairy gross revenue went up 45% quarter on quarter. Finally, China cross border e-commerce (CBEC) sales went up 27% quarter on quarter.

Investors will need to monitor whether this was a one-off quarter for the ASX share or if the growth continues.

Pacific Current Group Ltd (ASX: PAC)

This business takes investment stakes in fund managers around the world and then tries to help them grow with Pacific’s expertise.

Dean Fremder of Perpetual Limited (ASX: PPT) said about Pacific Current: “The stock’s really cheap. It is on nine times earnings. It’s growing earnings at double digits, so more than 10% a year. It’s paying a 6.5% fully franked yield. And most excitingly, we think they can pay out a much larger portion of their earnings as dividends. We see no reason, given the surplus franking credits they have on the balance sheet, they can’t be paying a 10 or 11% fully franked yield in the next 12 months. So, really excited about that one.”

Largely thanks to the GQG investment, Pacific Current has continued to see FUM growth during FY21 after FY20’s growth. In FY20 Pacific Current saw 18% growth of underlying earnings per share (EPS) and 62% growth of FUM to $93 billion. In the first quarter of FY21, FUM went up 14% to $106.4 billion and then in the second quarter FUM rose 8.3% to $112.8 billion.

At the current Pacific Current share price, it’s valued at under 10x FY22’s estimated earnings.

More reading

• Why Bubs, Huon, Temple & Webster, & Unibail-Rodamco-Westfield are dropping lower
• 2 small cap ASX shares that are growing quickly
• 2 compelling ASX shares to buy in February 2021
• Woolworths (ASX:WOW) settles shareholders’ lawsuit for $44.5 million
• Top ASX shares to buy in February 2021

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Got cash to invest? Here are 3 ASX shares to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3re8UuO