Tag: Motley Fool

The Vection Technologies Ltd (ASX: VR1) share price is up 4.17 at 12.5 cents in early trade today. This comes after the company announced that it will begin collaborating with global information technology company, HP Inc (HP).

The Vection share price closed last Friday at 12 cents in the weak sentiment of the ASX market. Previously, shares in the real-time software company were sitting at a 2-week high of 13.5 cents.

What did Vection announce?

In this morning’s release, Vection advised it has started an original equipment manufacturer (OEM) agreement with HP.

Under the deal, both companies will seek to create virtual reality (VR) integrated solutions to be delivered across 170 countries. The service agreement will be executed using Vection’s VR software and HP’s VR hardware expertise, while tapping into HP’s expansive global network.

While Vection did not reveal financial information on the OEM agreement, it expects revenue to be material. It noted that successful marketing and sales initiatives by both companies would lead to “positive revenue generation”.

What did management say?

HP’s United States business development manager Matt Gaiser welcomed the partnership, saying:

We are glad to welcome Vection Technologies and Mindesk in our OEM Program. Working together will help Vection to provide an integrated hardware and software service to enterprise customers. Vection’s products can leverage Z by HP workstations and VR devices to foster professional CAD development and accelerate go-to-market time across many industries.

Vection technologies director Gabriele Sorrento added:

Working with HP is another key step in the commercial network development strategy aimed at supporting Vection’s growth. Being HP OEM partners means for us being able to manage and deliver hardware and software bundles globally. This agreement represents a long step forward for our commercial operation structure.

About the Vection share price

The Vection share price has surged higher in the past 12 months, bringing gains of 380% for investors.

The company’s shares hit a low of 1.5 cents in last year’s March coronavirus meltdown, before gradually moving upwards in the months following. In September, its shares rocketed from 6 cents to reach a 52-week high of 24 cents in October.

The Vection share price has stabilised around the 12 to 13 cent mark. Based on the current share price, Vection has a market capitalisation of around $115 million.

More reading

• What happened to the Vection (ASX:VR1) share price today?

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

The post Why the Vection (ASX:VR1) share price is lifting today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2L6JwrB

The Coca-Cola Amatil Ltd (ASX: CCL) share price is pushing higher on Monday.

In morning trade, the beverage company’s shares are up 0.5% to $13.15.

Why is the Coca-Cola Amatil share price pushing higher?

This morning Coca-Cola Amatil provided investors with an update on its takeover approach from Coca-Cola European Partners.

In November, the company revealed that it had entered into a scheme implementation deed with Coca-Cola European Partners for the acquisition of all of the issued shares held by independent shareholders via a scheme of arrangement.

This followed the receipt of an offer of $12.75 per share, less any final dividend paid before the date of implementation of any scheme. This represented a premium of 23% to the undisturbed one-week volume weighted average price at the time. It also valued the company at approximately $9.3 billion.

At the time, the implementation of the scheme remained subject to certain conditions. These include regulatory approvals, no material adverse changes in its performance, an independent expert report, shareholder approval, Australian court approval, and other customary conditions.

What’s the latest?

Today, the takeover approach moved closer to becoming a reality after Coca-Cola Amatil announced that the Foreign Investment Review Board (FIRB) has determined that the Commonwealth has no objection to a wholly owned subsidiary of CCEP acquiring up to a 100% interest in the company.

The receipt of FIRB approval satisfies one of the conditions precedent to the implementation of the scheme.

What’s left to do?

The implementation of the scheme remains subject to a few more conditions. This includes approval from the New Zealand Overseas Investment Office.

In respect to shareholder approval, no firm date has been set for the vote. However, Coca-Cola Amatil is expecting to hold a shareholder meeting early in 2021.

In the meantime, it has advised that shareholders do not need to take any action in relation to the scheme.

More reading

• These blue chip ASX shares just hit multi-year highs
• Why the Coca-Cola Amatil (ASX: CCL) share price is in focus today
• The ASX 200 stock facing a day of reckoning at the February reporting season
• Citi sees bigger takeover offer coming for Coca-Cola Amatil (ASX:CCL) share price

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 Coca-Cola Amatil (ASX:CCL) share price is pushing higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3coM1AJ

The Creso Pharma Ltd (ASX: CPH) share price has started the week with a bang.

At the time of writing, the cannabis company’s shares are up 18% to 23 cents.

Why is the Creso Pharma share price rocketing higher?

Investors have been buying Creso Pharma shares following the release of an announcement in relation to over-the-counter sales of low-dose cannabidiol (CBD) products in Australian pharmacies.

According to the release, Creso Pharma expects to benefit from changes in legislation that mean low-dose CBD products can be sold over-the-counter in Australian pharmacies from this morning.

This follows a decision by the Therapeutic Goods Administration (TGA) to down-schedule low dose CBD preparations from Schedule 4 (Prescription Medicine) to Schedule 3 (Pharmacist Only Medicine).

From today, TGA-approved CBD products containing up to a maximum of 150mg per day can be sold to adults by a pharmacist without a prescription.

Management believes this is a major development for the Australian medicinal cannabis industry and estimates that it provides the company with a market opportunity expected to exceed $200 million per annum.

“Very well placed to capitalise”

Furthermore, it feels the company is very well placed to capitalise on the growing market opportunity due to its existing portfolio of CBD products that are being actively sold in several countries globally. It notes that its flagship CannaQIX 50 product is already available in Australia via prescription, under the LozaCan brand.

The company also has an agreement with sustainable health and lifestyle brand supplier Martin & Pleasance to bring Creso’s suite of cannabis-based products to the Australian market.

Creso’s Non-Executive Chairman, Adam Blumenthal, commented: “Today is a major milestone for the Australian medicinal cannabis industry, which we anticipate will grow rapidly over the coming months. The TGA’s decision to allow the sale of low–dose CBD products to consumers without a prescription provides Creso Pharma with another exciting opportunity to grow in Australia and another potential revenue stream for the Company.”

“We will continue to work with Martin & Pleasance to define the specific regulatory pathway for our product in the Australian market and look forward to proving its superiority through the ARTG registration process. “Creso continues to progress a number of growth initiatives in Australia and internationally and looks forward to updating shareholders as developments materialise,” he concluded.

More reading

• Why Bingo, Creso Pharma, Domino’s, & Tyro shares are zooming higher today
• Why the Creso Pharma (ASX:CPH) share price is smoking the market today
• Afterpay and Creso Pharma were among the most traded shares on the ASX last week
• Here’s why the Creso Pharma (ASX:CPH) share price is jumping 13% higher today
• Why ASX cannabis shares are cheering the US elections

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 Creso Pharma (ASX:CPH) share price is rocketing 18% higher appeared first on The Motley Fool Australia.

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

Woolworths Group Ltd (ASX: WOW) has settled a $100 million class action case brought on from shareholders accusing it of misleading conduct.

The supermarket faced the wrath of investors back in 2015 when it provided shock downgrades to its profit guidance.

This was caused by Woolworths’ decision to spend $500 million cutting grocery prices to recover clientele given up to Coles Group Ltd (ASX: COL) and Aldi.

That sudden cost, plus losses mounting from its foray into the hardware sector, saw the Woolworths share price decline from more than $36 in August 2014 to below $23 in November 2015.

Law firm Maurice Blackburn launched the legal action back in September 2018. Woolworths quietly updated the market late on Friday afternoon about the settlement.

“The settlement, in the sum of $44.5 million inclusive of all costs… will not have any financial impact on Woolworths Group,” the company stated.

“The settlement is without admission of any liability.”

Woolworths share price has recovered nicely since 2015

The supermarket’s price-cutting drive did work. It regained market share back from Coles and Aldi, with Woolworths shares now trading at $40.86 (at the time of writing).

Last month Goldman Sachs had a “neutral” rating for Woolworths shares, with a price target of $39.90. Its analysts are forecasting a 10.1% lift in year-on-year revenue when Woolworths’ half year results come out this month.

That growth will be mostly driven by groceries and Big W, with the hotels business dragging it back due to the COVID-19 pandemic.

Goldman Sachs is predicting the supermarket giant will pay out 48.8 cents of dividend per share, compared to 54 cents forecast by other analysts.

More reading

• ASX 200 Weekly Wrap: Reality (and GameStop) finally hits ASX
• ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
• Here’s one party Woolies and Coles will not be attending
• What analysts expect from the Woolworths (ASX:WOW) first half result
• CV Check (ASX:CV1) share price flat on results update

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. 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 Woolworths (ASX:WOW) settles shareholders’ lawsuit for $44.5 million appeared first on The Motley Fool Australia.

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

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.

Last May — when Tesla Inc (NASDAQ: TSLA) shares were trading for around $150 on a split-adjusted basis — CEO Elon Musk opined on Twitter that Tesla’s stock price was probably too high.

Tesla stock price is too high imo

— Elon Musk (@elonmusk) May 1, 2020

https://platform.twitter.com/widgets.js

As Tesla stock continued to rise during the remainder of 2020 and sustained its massive gains, Musk began to change his tune. By the time Tesla held its fourth-quarter earnings call last week, the stock had more than quintupled from the level that Musk had considered “too high” less than a year ago. Nevertheless, the Tesla CEO laid out a case for why the impending arrival of full self-driving technology would justify the company’s lofty valuation.

There’s just one problem: Musk’s entire argument is built upon a fallacy. Let’s take a look.

Elon Musk math

Last year, Tesla’s automotive revenue reached a record $27.2 billion, and the company earned a GAAP operating profit of $2 billion. Tesla expects to grow dramatically from that base. It projects that it will increase its vehicle deliveries about 50% annually on average in the near term, as it increases its battery and assembly capacity, localizes production, and introduces new models.

Still, based on Tesla’s Wednesday closing price of $864.16 and its diluted share count of 1.124 billion shares, the company had a fully diluted market capitalisation of nearly $1 trillion. Even if Tesla was able to grow its earnings tenfold, it wouldn’t justify the company’s recent valuation without aggressive expectations for continued growth.

During Tesla’s recent earnings call, Musk opined that the stock remains reasonably valued if one factors in the profit potential of the full self-driving capabilities Tesla is building.

… [I]f Tesla’s ships, let’s say, hypothetically, $50 billion or $60 billion worth of vehicles, and those vehicles become full self-driving and can be used … as robotaxis, the utility increases from an average of 12 hours a week to potentially an average of 60 hours a week. … [L]et’s just assume that the car becomes twice as useful … that would be a doubling again of the revenue of the company, which is almost entirely gross margin. … [I]t would be like … having $50 billion of incremental profit basically from that because it’s just software.

In short, Musk argues that FSD capability will make each car Tesla builds dramatically more valuable, because it can be used more than a personal vehicle. Musk believes that Tesla will capture that extra value as almost pure profit, driving a massive earnings inflection that would enable the company to earn tens of billions of dollars annually within a few years — with plenty of room to keep growing.

It’s a giant fallacy

Alas, this “plan” is built on a fallacy. First, while typical car owners may spend just 12 hours per week in their vehicles, actual taxis get used far more often. In New York City, for example, some taxis are used for double shifts and may operate 100 hours per week (or even more). Those vehicles aren’t more valuable just because they will be used more: Production costs determine the vehicle’s selling price more than intended usage.

Second, Statista estimates that the global market for taxis and ride-hailing will reach $260 billion this year. That represents a sizable opportunity, but getting to $50 billion of revenue or more won’t be easy. It will take time for robotaxis to disrupt the traditional ridesharing and taxi markets. And even when they do, Tesla will face lots of competition, as numerous other companies also hope to roll out robotaxi services.

Robotaxi services may earn higher margins than auto manufacturers in the long run. However, Musk’s implicit assumption that Tesla could double its revenue with minimal incremental costs — thus earning pre-tax margins of 50% or more — is clearly false. If Tesla were to set its robotaxi rates high enough that it could earn such lofty margins, competitors would undercut it on price and steal its market share. This competitive dynamic will sharply limit the incremental profit opportunity from using Teslas as robotaxis.

Look to the core business for Tesla’s value

Many Tesla bulls expect the company to become the largest automaker in the world within 10 or 15 years, delivering 10 million or more cars annually. If Tesla can pull that off while attaining double-digit automotive operating margins and building up lucrative side businesses in solar, batteries, and robotaxis, Tesla stock could certainly grow into its valuation over time.

However, investors shouldn’t count on robotaxis as a magic bullet that will make Tesla massively profitable overnight. Tesla may develop a nice robotaxi business on the side, but the core auto business’ growth will determine whether Tesla stock continues to soar or plunges back to earth in the decade ahead.

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

More reading

• Why Tesla stock fell on Thursday
• Gamestop on the ASX? Why GME Resources (ASX:GME) share price rocketed 28% today
• Tesla earnings: 5 must-see metrics highlight strong execution
• Here are the US shares ASX investors are buying
• Will the blue sweep boost Tesla? Don’t count on it

Adam Levine-Weinberg 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 and Twitter. 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 Don’t fall for Elon Musk’s self-driving car fallacy 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/39A0W9h

ASX stocks are already facing a tough start this morning but the Crown Resorts Ltd (ASX: CWN) share price could be hit harder than most.

The futures market is pricing in a 0.5% drop in the S&P/ASX 200 Index (Index:^AXJO) when trade kicks off on the first day of the new month.

But the flash COVID-19 lockdown in Perth is claiming an early victim with Crown reporting that its Perth Casino will have to cease most operations.

CWN share price catching new WA COVID lockdown bug

Management said that from 31 January till 5 February, it will close all gaming activities as well as food outlets. This means banqueting and conference facilities will also be shuttered and Crown’s food venues will only serve takeaway.

Its hotel accommodation business can continue to operate, but at a reduced capacity.

Crown had been hit hard by the stage four lockdown in Victoria – regarded as the toughest in the Western world.

Why the COVID lockdown could get a lot worse

What might also worry Crown investors is speculation that the five-day lockdown imposed by the McGowan government may last a lot longer.

The warning comes from Australian Medical Association president Omar Khorshid that was reported on Nine News.

If the hotel quarantine security guard at the centre of the outbreak scare has already  passed on the infection, the state will need more than five days to get the situation under control.

“If it has already spread, it will be longer than five days. It will be significantly longer,” Dr Khorshid told Nine.

“You have to go to the people who test positives, to their contacts, to work out where they have been. As we have seen in every other state. The real test will be the five days. Does anybody test positive? If they do, we are in for a much longer battle here in West Australia.”

Impact on other ASX stocks

If the virus is out of control, CWN won’t be the only ASX stock to be impacted by the WA COVID lockdown. The Fortescue Metals Group Limited (ASX: FMG) share price and Rio Tinto Limited (ASX: RIO) share price are also likely to come under pressure if worksite restrictions are imposed.

We are still some ways from that and it’s hard to imagine we could become Brazil, but it’s a risk to be aware of.

COVID isn’t the biggest challenge for CWN shareholders

The outbreak in the “fortress state” of Western Australia is the latest challenge hitting the problem-laden CWN share price.

The highly anticipated report from New South Wales Inquiry is expected to be handed to authorities today, reported the West Australian.

The Inquiry was examining if Crown is fit to be holding a gaming license in the state and the revelations during the process is damning.

But the public may need to wait for another two weeks to find out the details of the investigation.

COVID isn’t the biggest threat facing CWN shareholders.

More reading

• These were the worst performing ASX 200 shares in January
• These were the best performing ASX 200 shares in January
• ASX 200 Weekly Wrap: Reality (and GameStop) finally hits ASX
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 next week

Motley Fool contributor Brendon Lau owns shares of Fortescue Metals Group Limited  and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia has recommended Crown Resorts Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Crown (ASX:CWN) share price could be hit harder than others today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39BU2QM

Shares in ASX healthcare company Polynovo Ltd (ASX: PNV) have had a shocking start to 2021, shedding over 30% of their value in January. The decline in the Polynovo share price comes despite the company announcing a sharp rise in first half sales, as well as its continued expansion into a new European markets.

What does Polynovo do?

Polynovo is a healthcare company specialising in the development of biodegradable medical devices that aid in skin tissue repair. Its flagship medical technology is called NovoSorb, a medical-grade polymer designed for use in surgery, tissue repair, and other medical procedures.

Novosorb BTM (“Biodegradable Temporising Matrix”) is the first fully commercialised Novosorb product developed by Polynovo. It is a synthetic polymer matrix that clinicians can use to treat burns and other serious skin wounds. The polymer can be applied to trauma sites on the skin and encourages the body to build new tissue. The polymer is eventually safely absorbed and excreted, leaving only biological material behind.

What’s been happening to the Polynovo share price?

After a strong rally in the second half of 2020, which saw the Polynovo share price surge to a new record high of $4.08 by late December, Polynovo shares have collapsed this year. They are now trading at just $2.63 (at the time of writing), 35% less than their 52-week high and their lowest price since early November.

Recent news out of the company

Polynovo has released a flurry of announcements in recent months. On 19 November 2020, the company announced it was extending its partnership with its European distributor, PolyMedics Innovations, and entering the healthcare markets in Belgium, the Netherlands, Luxembourg and Sweden.

Then, on 20 January 2021, Polynovo also announced it had appointed distributors in Poland and Turkey. The company claims these markets are both key to its growth strategy. Turkey provides a gateway into the Europe-Middle East-Africa (EMEA) market, while Poland is the sixth largest country in Europe and has a medical device market valued at over $2.2 billion.

However, while the announcement back in November caused the Polynovo share price to soar to new highs, the ones in January barely shifted the dial at all.

This could be down to uncertainty reflected in the company’s interim trading update for the first half of FY21, released to the market on 12 January 2021. While sales for the half were up 31% versus the first half of FY20, most of this uplift came in the first quarter, while sales in October and November were slower than expected.

The lumpiness in the sales numbers was partly down to disruptions caused by COVID-19, particularly in the United States. Other markets that have dealt better with the challenges posed by the pandemic, such as Taiwan and New Zealand, exceeded their budgets.

Polynovo Managing Director Paul Brennan hinted that there might be some continued short-term volatility in the company’s results when commenting on the announcement. He noted that “in the short-term, forecasting sales will be challenging particularly in the US, however the medium-term outlook is strong.”

Based on the current Polynovo share price, the company has a market capitalisation of around $1.7 billion.

More reading

• These were the worst performing ASX 200 shares in January
• These ASX 200 shares have been smashed in 2021
• ASX 200 rises 0.4%
• ASX 200 up 0.5%: BHP’s update, PolyNovo jumps, Ansell impresses
• Why Afterpay, Ansell, MyDeal, & PolyNovo shares are storming higher today

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.

The post The Polynovo (ASX:PNV) share price is already down 30% in 2021 appeared first on The Motley Fool Australia.

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

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.

eBay (NASDAQ: EBAY) investors had a fantastic 2020, with the stock price comfortably outpacing the broader market during the pandemic-fuelled e-commerce boom. Sure, companies like Amazon and Shopify posted wider gains. But eBay’s nearly 40% share-price spike reflected some major operating wins and kept it ahead of other huge online businesses, including Walmart.

Investors are about to learn exactly how well eBay did in 2020 when the company announces its holiday season results. The strength of that performance, along with management’s official outlook for 2021, will determine whether the stock continues its winning streak into the new year.

Let’s take a closer look at the company in advance of the fourth-quarter earnings report’s release on Wednesday, Feb. 3, and what investors should watch for.

Merchandise volumes and conversion rates

eBay’s core growth metric is the volume of merchandise moving through its platform. Soaring results here formed the basis for last year’s stock surge. Volume had been flat or declining in the quarters before the pandemic struck but shot up to over 20% year over year as commerce stampeded to online channels beginning in late February.

This quarter’s report will answer big questions around the sustainability of that spike. Volume gains year over year slowed to 21% in Q3 from 29% in the quarter that captured the most intense period of retailing shutdowns. For its part, management in late October forecast gains in the low double-digit percentages. However, eBay easily surpassed its last quarterly outlook, and investors are hoping for another beat this week.

Other indications of healthy market share would show in an expanding buyer pool and robust conversion rates for its product pages. CEO Jamie Iannone should comment on both these metrics on Wednesday.

Cash and profits

eBay’s asset-light operating model restricts its growth potential a bit as compared to Amazon, but the trade-off is higher profitability and impressive cash flow. Earnings more than doubled last quarter as operating margin surged thanks to the combination of higher sales, lower expenses, and an uptick in seller transaction fees.

Wall Street is expecting more gains ahead in this area, with reported earnings set to rise to $0.83 per share compared to $0.66 per share a year ago. But the more useful figure to follow is cash flow. eBay generated $584 million of free cash flow in Q3, and the company needs more success here to meet management’s goals of investing in the business while paying down debt and sending more cash to shareholders through dividends and stock repurchases.

The 2021 outlook

Iannone and his team will be looking at an unusually wide range of potential results as they craft their official 2021 forecast. Organic sales likely increased by at least 20% in 2020 compared to their initial prediction targeting a flat result. That boost sets a high bar for growth this year, but it also gives the marketplace giant momentum in a quickly growing industry.

The good news is eBay already showed off a few impressive competitive advantages at a time when sellers were looking for new platforms they could use to connect with their customers during COVID-19.

The company’s main challenge for 2021 is convincing these small businesses to stick around, mainly by making the platform more popular with buyers and easier for sellers to use. These successes are the key to eBay protecting its positive momentum in what’s likely to be a competitive selling period ahead for the e-commerce industry.

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

More reading

• These were the worst performing ASX 200 shares in January
• Top ASX shares to buy in February 2021
• These were the best performing ASX 200 shares in January
• The worst mistake GameStop investors can make right now
• 3 ASX dividend shares with yields above 5%

Demitri Kalogeropoulos owns shares of Amazon. 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 Shopify. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends eBay 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.

The post eBay Earnings: What to watch 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/3tedNGc

The S&P/ASX 200 Index (ASX: XJO) was on course to record a strong gain in January until a final week market selloff. The benchmark index ultimately ended the month with a gain of 0.3% to 6,607.4 points.

A number of shares were unable to follow the market higher and recorded disappointing monthly declines. Here’s why these were the worst performers in January:

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price was the worst performer on the ASX 200 in January by some distance with a 32.2% decline. Investors were selling the medical device company’s shares following the release of a disappointing first half trading update. During the six months ending 31 December, PolyNovo delivered a 31% increase in sales over the prior corresponding period. Although this is strong growth, it fell short of both the market’s expectations and management’s guidance. Bell Potter was disappointed with its performance. It commented: “Polynovo announced a relatively disappointing trading update, with 1H FY21 sales growth of 31% vs the pcp well below our forecasts, consensus and management expectations.”

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price was out of form and dropped 14.8% lower during the month. This was despite there being no news out of the infection prevention company. Though, the company was the subject of a reasonably bearish broker note during the period. Analysts at Ord Minnett have retained their lighten rating and put a $5.65 price target on its shares. This compares to the latest Nanosonics share price of $6.84. It believes rising COVID-19 cases in Europe and the US could be putting pressure on demand for its products.

Adbri Ltd (ASX: ABC)

The Adbri share price wasn’t far behind with a 14.3% decline in January. This also appears to have been driven by a broker note. According to one out of Morgan Stanley, its analysts downgraded the building products company’s shares to an underweight rating and cut the price target on them to $3.30. It believes the company’s shares are fully valued given its reasonably subdued growth outlook.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price was out of form and dropped 13.9% lower in January. Investors were selling the administration services company’s shares after the release of an update on a takeover approach by SS&C Technology Holdings. In December, the NASDAQ listed global provider of investment and financial software tabled a conditional offer of $5.65 per share to acquire 100% of Link. Although management felt the offer undervalued the company, it still allowed SS&C Technology to undertake due diligence. However, following the completion of its due diligence, the US company has walked away from the table and withdrawn its proposal.

More reading

• These were the best performing ASX 200 shares in January
• ASX 200 Weekly Wrap: Reality (and GameStop) finally hits ASX
• 2 quality ASX growth shares that could be long term market beaters
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 next week

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 Link Administration Holdings Ltd and POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These were the worst performing ASX 200 shares in January appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39xusN4

With the new trading year underway and earnings season just around the corner, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to Buy in February.

Here is what the team have come up with…

Tristan Harrison: Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an electronic donation business which predominantly serves medium and large United States churches. The company is rapidly growing its margins. In Pushpay’s FY21 half-year result it increased its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin from 17% to 31%.

The company also recently increased its FY21 EBITDAF guidance range of US$56 million to US$60 million. Management is expecting operating leverage to continue to accrue this year and beyond.

Pushpay is aiming for 50% market share and US$1 billion of annual revenue over the long term.

Motley Fool contributor Tristan Harrison does not own shares of Pushpay Holdings Ltd.

Bernd Struben: Nearmap Ltd (ASX: NEA)

Nearmap uses patented cameras and processing software systems to provide digital mapping and aerial imagery services. The company’s primary markets are the US, Australia, Canada, and New Zealand, and, according to Nearmap, there is plenty of growth potential left in these markets. The company is also hoping its commitment to product innovation, such as its new Nearmap AI, will help create effective barriers to entry for would-be competitors.

Following Nearmap’s $90 million capital raising in September, the company believes its cash position is strong. Management is striving to achieve annualised contract value (ACV) growth of 20% to 40% over the coming years. At the time of writing, the Nearmap share price is trading 33.5% lower than its 52-week high seen in August.  

Motley Fool contributor Bernd Struben does not own shares of Nearmap Ltd.

Sebastian Bowen: Challenger Ltd (ASX: CGF)

Challenger is a fund management firm focused on annuities. Annuities are financial products that have been growing in popularity in recent years due to the certainty of income they can provide to the purchaser in retirement. This trend could arguably broaden further in the future with Australia’s ageing population.

Unfortunately for this ASX share, the record low interest rates we have been seeing over the past year have dented the company’s fortunes. However, this also means Challenger could be a  beneficiary if rates start rising again. And that is bound to happen sooner or later. 

Motley Fool contributor Sebastian Bowen does not own shares of Challenger Ltd.

Brendon Lau: Macquarie Group Ltd (ASX: MQG)

The Macquarie share price will be one to watch in February after Morgan Stanley recently highlighted the potential for the investment bank to meet or beat its FY21 consensus forecasts. The broker cited improved trading conditions and ongoing structural tailwinds for its “overweight” recommendation on this ASX share with a 12-month price target of $155.

At the time of writing, the Macquarie share price is trading at around $131, more than 14% lower than its 52-week high of $152.35 achieved in February last year.

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Ltd.

Rhys Brock: Temple & Webster Group Ltd (ASX: TPW)

Online furniture retailer Temple & Webster has been a surprising success story to emerge out of the COVID-19 pandemic. With government-imposed lockdowns hurting many brick-and-mortar businesses across Australia and New Zealand in 2020, Temple & Webster was able to cash in on the consumer shift towards online shopping. It reported a 74% jump in revenues to $176.3 million in FY20, and active customers increased 77% to almost 500,000.

Although there has been a recent pullback in the Temple & Webster share price, the performance of the underlying business has remained robust. First quarter FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $8.6 million – which is already greater than the company’s EBITDA for all of FY20.

Motley Fool contributor Rhys Brock owns shares of Temple & Webster Group Ltd.

James Mickleboro: Appen Ltd (ASX: APX)

The Appen share price has come under significant pressure recently. This has been partly due to a trading update from the company revealing COVID-19 was having an impact on demand from some its largest customers. The good news is that management believes this is a temporary headwind and expects demand for its machine learning and artificial intelligence data services to rebound once the pandemic eases.

And, with the Appen share price down ~50% from its 52-week high, analysts at Macquarie have recently put an outperform rating and $27.00 price target on Appen shares. They believe the company is well-placed to benefit from increasing artificial intelligence spending in the coming years.

Motley Fool contributor James Mickleboro does not own shares of Appen Ltd.

Tristan Harrison: Pacific Current Group Ltd (ASX: PAC)

According to Pacific Current, it is a company that invests in “exceptional” investment managers.

In its update for the three months ending 31 December 2020, Pacific said its funds under management (FUM) rose 8.3% to $112.8 billion with GQG, one of its investments, posting “significant increases”. GQG grew FUM by over US$35 billion during 2020.

Dean Fremder of Perpetual Limited (ASX: PPT) went as far as saying: “The stock’s really cheap. It’s on nine times earnings. It’s growing earnings at double digits, so more than 10% a year… we think they can pay out a much larger portion of their earnings as dividends.”

Motley Fool contributor Tristan Harrison does not own shares of Pacific Current Group Ltd.

Sebastian Bowen: Coles Group Ltd (ASX: COL)

Coles is a certainly a company that flourished during the worst throes of the pandemic-induced lockdowns last year. Thanks to panic buying of goods, Coles managed to substantially increase its revenue during 2020. That’s the appeal of consumer staples companies in a nutshell. They provide products we all use on a daily basis.

Whilst many ASX shares delivered reduced dividends last year, Coles actually increased its dividend payouts. Based on the current Coles share price, you can expect a fully franked dividend yield of more than 3%, which looks pretty good in this low-interest-rate environment.

Motley Fool contributor Sebastian Bowen does not own shares of Coles Group Ltd.

More reading

• 3 ASX dividend shares with yields above 5%
• ASX 200 Weekly Wrap: Reality (and GameStop) finally hits ASX
• Leading broker names Nearmap (ASX:NEA) as a buy
• 2 on form ASX dividend shares to buy
• Leading brokers name 3 ASX shares to buy today

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 Challenger Limited, Macquarie Group Limited, Nearmap Ltd., and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Appen Ltd and COLESGROUP DEF SET. 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.

The post Top ASX shares to buy in February 2021 appeared first on The Motley Fool Australia.

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