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The Ioneer Ltd (ASX: INR) share price is having a stellar week, up 16% since Monday. Shares in the rare earth explorer rocketed up 11% to 33.5 cents yesterday as the company announced that it has made inroads into supplying the booming EV sector.

In trading today, the Ioneer share price has dropped 2.99% down to a price of 32.5 cents at the time of writing.

What Ioneer does

Ioneer is a rare earth explorer, located predominantly in the US. It is the 100% owner of Rhyolite Ridge in the Nevada desert. Ioneer claims this to be the only lithium-boron deposit in North America and one of only two such deposits in the world.

Ioneer’s feasibility study completed in April 2020 confirmed Rhyolite as a “world class” lithium and boron site. The company expects the mine to become a “globally significant, long-life, low-cost source of lithium and boron”.

What’s driving the Ioneer share price?

The company advised yesterday that its metallurgy and process engineering team successfully converted lithium carbonate produced at its pilot plant. The team was able to turn the lithium into battery grade lithium hydroxide essential in electric vehicles.

Moving forward, the company remains highly focused on securing off take agreements for its lithium products, having already agreed binding deals for its boric acid.

The ability to manufacture both lithium carbonate and hydroxide places the company apart from other producers, such as Pilbara Minerals Ltd (ASX: PLS), Galaxy Resources Limited (ASX: GXY) and Piedmont Lithium Ltd (ASX: PLL).

Management comments

Ioneer  managing director Bernard Rowe welcomed the news, stating:

Rhyolite Ridge will be well-positioned to meet both North American and global demand for Lithium carbonate and battery grade lithium hydroxide.

As the premier US project, Ioneer will be uniquely situated to supply the future US electric vehicle platforms of automotive OEMs. Benchmark Mineral Intelligence predicts that US demand for lithium carbonate and lithium hydroxide could exceed 344kt by 2025 with nearly no domestic supply.

The company also noted that the Tesla Inc (NASDAQ: TSLA) Gigafactory is located just 203 miles northwest of the project site.

Despite falling today, the Ioneer share price has gained a whopping 76% year to date.

More reading

• 2 reasons to avoid Tesla stock right now
• Why these ASX shares just stormed to 52-week highs or better
• The Syrah (ASX:SYR) share price is up 8% today. Here’s why
• 3 ASX shares powering the electric car revolution
• Here are the US shares ASX investors are buying

The post Why the Ioneer (ASX:INR) share price is up 16% this week appeared first on The Motley Fool Australia.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on track to end the week in a subdued manner. The benchmark index is down 0.2% to 6,812 points at the time of writing.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping lower:

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 5% to $141.85. This appears to have been driven by profit taking from investors after some stellar gains recently. In fact, at one stage today the Afterpay share price hit a record high of $151.22. When the payments company’s shares hit that level, it meant they were up a massive 37% since last Wednesday. A bullish broker note and Affirm’s successful IPO in the US have helped drive Afterpay’s shares higher this month.

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price has fallen a further 1% to $2.35. Investors have been selling this waste management company’s shares this week following the resignation of its CEO. In response to this surprising news, Credit Suisse downgraded the company’s shares to a neutral rating with a $2.45 price target.

Mosaic Brands Ltd (ASX: MOZ)

The Mosaic Brands share price has crashed 11% lower to $1.03. This decline appears to be due to profit taking from some investors after a significant jump in the fashion retailer’s share price on Thursday. The Mosaic Brands share price rocketed 32% higher yesterday after revealing that its performance had improved greatly.

Perpetual Limited (ASX: PPT)

The Perpetual share price is down almost 3.5% to $34.69 following the release of a trading update. According to the release, Perpetual’s total assets under management (AUM) came in at $89.2 billion at the end of the second quarter. This includes AUM from the Barrow Hanley acquisition on 18 November 2020. Perpetual Asset Management Australia’s AUM fell 2% to $22.7 billion.

More reading

• Why the Perpetual (ASX:PPT) share price is falling today
• ASX 200 rises 0.8%
• Why the Mosaic (ASX:MOZ) share price is rocketing 23% today
• Why Cleanaway, Crown, Pro Medicus, & Vulcan shares are tumbling lower
• ASX 200 up 0.65%: Zip update impresses, Netwealth rockets, Cleanaway dumped

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.

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The Worley Ltd (ASX: WOR) share price has slipped into negative territory today. This comes after the company advised it has been awarded a number of new service agreements.

In late morning trade, the global engineering company’s shares are down 0.5% to $12.42.

What did Worley announce?

The Worley share price has dipped lower today, despite announcing the positive news of winning new contracts.

In today’s release, Worley advised that it’s been awarded 4 master services agreements by subsidiaries of Cheniere Energy, Inc.

Based in Houston, Texas, Cheniere is an international energy company that is focused on producing liquefied natural gas (LNG). Commencing operations in 2016, the company has quickly become the second largest producer of LNG in the world.

The terms in detail

Under the agreements, Worley will provide engineering, procurement, construction and construction management services to Cheniere’s LNG facilities in the United States. This includes delivering project services to Corpus Christi Liquefaction and Sabine Pass Liquefaction facilities, located in Texas and Louisiana, respectively.

The scope of work will be carried out by Worley’s Houston office. In addition, the company’s Global Integrated Delivery team in India will lend support where needed.

Worley highlighted that the new agreements complement the recent master services contract awarded for Cheniere’s Corpus Christi site.

Comments from the CEO

Worley CEO Chris Ashton welcomed the service agreements, saying:

As a global professional services company with an extensive track record of sustaining and optimising LNG facilities globally, we are pleased that Cheniere has continued to engage Worley to provide expanded engineering and construction services to its Corpus Christi and Sabine Pass facilities.

These agreements support Cheniere in its strategy to deliver excellence in LNG, while supporting Worley’s strategic focus on sustainability and delivering a more sustainable world.

About the Worley share price

Over the last 9 months, the Worley share price has been moving on a gradual upwards trajectory. Falling to as low as $4.63 in March, the company’s shares have been on the road to recovery. This time last year, its shares were sitting at a 52-week high of $15.97.

More reading

• Broker lists the best ASX stocks to own for an up to 30% gain in 2021
• Worley (ASX:WOR) share price dips lower despite positive news
• Why the Worley (ASX:WOR) share price is edging higher
• ASX 200 drops 1.1%

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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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.

Tesla Inc (NASDAQ: TSLA) was the darling stock of 2020. At first, it seemed as if the admiration would continue in 2021 with the Tesla share price hitting a record $884 on 8 January. 

But since then, Tesla shares slipped 8% in a day and are currently trading down almost 4%. Has reality finally cracked investor fervor for Tesla?

A company to keep your eye on

I’m not a big Tesla fan — but I’m far from a permabear. In fact, I’ve watched Tesla closely for years now, and the company’s shown amazing execution ability despite being in the challenging automotive industry. Tesla fell just short of its goal of delivering 500,000 vehicles in 2020. That was impressive, considering COVID-19‘s disruptive effect on global manufacturing.

If you bought $10,000 of Tesla stock a decade ago, you would be a millionaire now just from that investment, but Tesla bulls want even more. They’re betting 2021 will be another good year for the electric vehicle (EV) maker, and that’s why the stock is up about 20.5% so far in 2021, in spite of the recent drop.

But I don’t think Tesla stock is a buy right now, for two simple reasons.

1. It’s closing on a trillion-dollar market cap

The year 2020 was a bumper one for Tesla as a company. It delivered a record 139,000 vehicles in the third quarter of 2020, which helped propel the company to a fifth consecutive quarter of profit. In addition, major automakers like General Motors announced deeper forays into the EV space, lending credence to Tesla’s push for battery-powered vehicles. Investors responded by sending Tesla shares into overdrive, and the stock rose almost ninefold.

Tesla’s breathtaking rally — as well as its recent inclusion in the S&P 500 Index (SP: .INX) — has drawn in a new crowd of retail and institutional investors. Meanwhile, existing Tesla bulls are holding on to the stock, reciting the mantra of long-term investing. 

Both camps share a common belief — that Tesla will continue skyrocketing in 2021, riding on rising car production and new model releases.

But it will be almost impossible for Tesla to repeat 2020’s cannonball rally. Tesla is already nearing $800 billion in market capitalisation, and it might only be a matter of time before it hits the $1 trillion valuation milestone. Merely doubling from current levels will make Tesla one of the world’s three biggest companies!

Size matters aside, Tesla’s valuation is excessively high at 29 times trailing sales. General Motors is trading at less than 0.5 times sales. 

Of course, Tesla’s fans believe the company’s more than just an automaker — it’s also involved in renewable energy, autonomous vehicles, and more recently, ride-sharing. But while this argument makes perfect sense, all this is already reflected in Tesla’s exorbitant share price.

Tesla’s investors may think they’re hedging bets on a “high risk, high reward” situation. But those expecting another threefold or fivefold return in 2021 will likely be disappointed.

2. As expectations meet reality, Tesla shares may face a sharp correction

So far, most investors have focused on what could go right for Tesla — not what could go wrong. This means they have looked at Tesla’s massive potential as a leading, global EV player, a market-leading autonomous ridesharing provider, and more. For Tesla, all this is possible — but still a work in progress.

The reality is that Tesla is still mainly a carmaker, for now, and in the near future. As a result, it’s subject to all the risks faced by automobile businesses, including production delays, supply chain disruptions, recalls, and regulatory battles. There’s a reason why shares of Tesla’s peers in the MSCI World Automobiles Index — household names like Toyota, Volkswagen, and General Motors — have remained more or less flat over the past five years.

Sooner or later, Tesla will get into some trouble that causes it to miss market expectations. This could result from the ongoing global recession, escalations in the US-China trade war, or even a simple production delay.

When that happens, investors might get cold feet. Then gravity will pull Tesla’s stock back to Earth. 

Let’s see what would happen if Tesla’s valuation narrowed from 29 times trailing sales to 10 times trailing sales. That’s still over 20 times what General Motors trades at. But to get there, Tesla shares would fall 66% — turning every $1,000 invested to $440.

Tesla is a great company with a cliff-hanger valuation

Thanks to its ambitious CEO, Elon Musk, Tesla is a one-of-a-kind company. With Musk at the helm, Tesla has positioned itself for leadership in electric cars, renewable energy, and other game-changing industries.

But a great company is not necessarily a great investment. We all know that overpaying for a stock can turn a great company into a bad investment. Tesla — despite its visionary leader and incredible potential — is a shaky investment proposition because investors have priced in all of the roses, and none of the risks. 

Everybody laughs when their stock goes up. But if Tesla hits a pothole — and chances are it will — there will be many tears. Even if you’re a diehard Tesla HODL-er, at current stock prices you’d be better off buying an actual vehicle from the carmaker. At least, you will likely enjoy the experience as a Tesla car owner. I can’t say the same for Tesla’s shareholders.

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

More reading

• The Syrah (ASX:SYR) share price is up 8% today. Here’s why
• 3 ASX shares powering the electric car revolution
• Here are the US shares ASX investors are buying
• Tesla debuts China-made Model Y SUV
• Here’s the biggest investment opportunity since the internet

Lawrence Nga 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 2 reasons to avoid Tesla stock right now appeared first on The Motley Fool Australia.

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

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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end a positive week in a subdued fashion. The benchmark index is currently down 0.2% to 6,811.6 points.

Here’s what has been happening on the ASX 200 today:

Wild day for the Zip share price

It has been a wild day for the Zip Co Ltd (ASX: Z1P) share price on Friday. After storming as much as 15% higher in early trade, the buy now pay later provider’s shares were down 4% in late morning trade. At the time of writing, the Zip share price is down 2%. On Thursday the company released its second quarter update and revealed stellar customer and transaction growth. This was particularly the case in the US market.

Lynas US update

The Lynas Rare Earths Ltd (ASX: LYC) share price is rocketing higher today after signing a deal with the U.S. Department of Defense. According to the release, the rare earths producer has entered into an agreement with the United States Government to build a commercial Light Rare Earths separation plant in Texas. This is separate to its phase one work on a U.S. based Heavy Rare Earth separation facility. If that contract moves to phase two, it will be constructed on the same site.

Fisher & Paykel Healthcare impresses

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is storming higher today following the release of a trading update. That update reveals that demand for the medical device company’s shares has remained strong. This led to the company’s operating revenue increasing 73% over the prior corresponding period for the nine months ended 31 December 2020. In addition to this, management advised that it now expects to outperform its prior full year guidance.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Lynas share price with a 12% gain following its US update. The worst performer has been the Unibail-Rodamco-Westfield (ASX: URW) share price with a 7% decline. This morning the company announced the disposal of the SHiFT office building in Paris for 620 million euros.

More reading

• Why Aussie Broadband, Fisher & Paykel Healthcare, Lynas, & Megaport are charging higher
• Why the Contact Energy (ASX:CEN) share price has surged 10% higher today
• Here’s why the Lynas (ASX:LYC) share price jumped 7% higher today
• Why the Fisher & Paykel Healthcare (ASX:FPH) share price could jump higher today
• 5 things to watch on the ASX 200 on Friday

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end a positive week on a subdued note. The benchmark index is currently down 0.1% to 6,818.2 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are charging higher:

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price has jumped 7% to $2.65 after providing its guidance for the first half. According to the release, the internet service provider reported 342,634 broadband connections at the end of December. This is up 31% over the last six months and 88% since this time last year. In light of this, it expects to report half year operating earnings of $8 million to $8.5 million excluding IPO costs.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price has stormed 7% higher to $32.92. This morning the medical device company revealed that it has continued to experience strong demand for its products. This was particularly the case in the Hospital Products segment, which underpinned a 73% increase in group operating revenue for the nine months ended 31 December 2020. Management also revealed that it expects to outperform its prior guidance for FY 2021.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price has surged 11.5% higher to $5.45. Investors have been buying the rare earths producer’s shares after it provided an update on its US activities. According to the release, the company has entered into an agreement with the United States Government to build a commercial Light Rare Earths separation plant in Texas.

Megaport Ltd (ASX: MP1)

The Megaport share price is up a further 2.5% to $12.98. Investors have been buying the global elastic interconnection services provider’s shares over the last couple of days after Goldman Sachs upgraded them to a buy rating with a $15.00 price target. Goldman believes Megaport will benefit from growing demand for public cloud infrastructure and the broadening of its product suite. The broker also has increased confidence on its path to generating positive free cash flow.

More reading

• Here’s why the Lynas (ASX:LYC) share price jumped 7% higher today
• Why the Fisher & Paykel Healthcare (ASX:FPH) share price could jump higher today
• Megaport (ASX:MP1) share price jumps 7% on broker upgrade
• Why Megaport, Netwealth, PointsBet, & Zip shares are racing higher
• 3 ASX shares powering the electric car revolution

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 and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Aussie Broadband Limited. The Motley Fool Australia has recommended MEGAPORT FPO. 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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Twenty years ago this weekend, the biggest existential threat to Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) quietly landed in Australia.

Funnily enough, back then, no one knew what it was and what impact it would have.

German budget supermarket Aldi opened its first two stores in Australia on 25 January 2001.

They were located in Marrickville in inner west Sydney and near Bankstown Airport further out west, according to QUT professor Gary Mortimer and University of Tasmania senior lecturer Louise Grimmer.

And the stores looked very odd to Australians at the time.

“Each stocked just 900 products, 90% of which were unknown brands,” the academics wrote on The Conversation.

“Shoppers had to bring and pack their own bags themselves. To use a trolley required a gold coin. They didn’t seek to entice customers with loyalty rewards or other gimmicks.”

Not many in the supermarket industry, let alone in the ASX investment world, thought Aldi posed a serious challenge to the massive Australian incumbents.

Right place at the right time

After all, budget supermarkets Franklins and Bi-Lo had just failed. It seemed Australian shoppers in 2001 were in no mood to buy weird brand names, pay for bags, then pack their own groceries.

But Mortimer and Grimmer explained Aldi stepped in just at a time when there was a low-price power vacuum in the market.

“Aldi expanded quickly. By mid-2003 it had 38 stores in New South Wales and six in Victoria. By 2011, it had 251 stores. By early 2013, more than 280,” they wrote.

“It overtook the IGA group [owned by Metcash Limited (ASX: MTS)] to become the third-biggest player in Australia’s supermarket sector by the end of 2013 – taking 10.3% of all grocery dollars (with Coles having 33.5% and Woolworths 39%).”

In case you’re wondering, you can’t buy shares in Aldi. Both the Australian arm and the German parent are privately held.

How Aldi changed the way Woolies and Coles behave

Woolworths and Coles were forced to respond to the success of Aldi.

The biggest impact, according to Mortimer and Grimmer, has been the rise of private label and “phantom” brands on our shelves.

“Aldi sells no ‘ALDI’ branded products. Instead it trades in phantom brands, such as Belmont ice cream, Radiance cleaning product and Lacura skin care. These brands are intended [to] overcome perceptions of private label items being lower quality,” they wrote.

“In 2016, Woolworths launched its own range of phantom brands. Coles followed suit in 2020 with brands including Wild Tides tuna and KOI toiletries.”

But Aldi still remains ‘good, different’

Despite the incumbents cloning some of Aldi’s business practices, the challenger still remains significantly different.

Aldi has shunned self-service checkouts. It still levies a surcharge for credit card payments. And despite COVID-19 lockdowns last year, the retailer has no plans to sell anything online, let alone deliver groceries to anyone.

Mortimer and Grimmer pointed out Aldi never faced a customer backlash when plastic bags were phased out around Australia a couple of years ago.

“It [had] never offered free shopping bags, always charging 15 cents for them,” they wrote.

“So Aldi continues to be an exception to the rule in Australian supermarket retailing. History suggests that’s a recipe for continued success.”

More reading

• 3 top ASX dividend shares to buy for 2021 and beyond
• 2 quality ASX dividend shares for income investors to buy
• What analysts expect from the Woolworths (ASX:WOW) first half result
• CV Check (ASX:CV1) share price flat on results update
• What to expect from the Coles (ASX:COL) first half result

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 Here’s one party Woolies and Coles will not be attending appeared first on The Motley Fool Australia.

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The Contact Energy Limited (ASX: CEN) share price has burst from the blocks in early trade after its latest monthly operating report. Today’s early gains follow a 7.3% share price gain yesterday as investors pile into the Kiwi energy share.

Why is the Contact Energy share price up 10% today?

Shares in the New Zealand electricity generator and retailer jumped 9.7% higher at market open following the update. Contact released its December 2020 monthly report with key updates from across the business. 

In the Customer business, Contact recorded mass market electricity and gas sales of 286 gigawatt hours (GWh), down from 303 GWh in December 2019. The Customer average electricity sales price climbed 2.8% to $256.13/MWh.

Mass market electricity and gas netback totalled $98.67 per megawatt hour (MWh), up from $89.89/MWh in December 2019. Netback is an approximate measure of gross profit per unit, incorporating sales price less cost of delivery.

Contact’s Wholesale business recorded contracted electricity sales of 582GWh, down from 639GWh last year. Electricity and steam net revenue climbed to $70.29/GWh, up from $69.64 in December 2019, with electricity generated (or acquired) of 617GWh, up from 691GWh last year.

The Contact Energy share price is rocketing higher following the update which showed higher than expected wholesale electricity pricing in December. New Zealand national electricity demand was down 0.9% on December 2019 numbers with lower nationwide temperatures a contributing factor.

Geothermal generation climbed from 276GWh in December 2019 to 285GWh, while hydro and thermal output both fell lower. Hydro generation fell 22.9% to 266GWh with thermal generation falling 38.6% to 27GWh.

The Contact Energy share price has rocketed higher this morning despite the broader market starting slowly. The benchmark S&P/ASX 200 Index (ASX: XJO) has edged 0.1% lower in early trade but energy stocks continue to climb.

Today’s gains follow a good day of trade for the Kiwi energy share in yesterday’s trade. The Contact Energy share price surged 7.3% higher with strong inflows from offshore exchange traded funds (ETFs) into New Zealand clean energy shares driving high demand.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.8%
• ASX 200 up 0.65%: Zip update impresses, Netwealth rockets, Cleanaway dumped
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises 0.4%

Motley Fool contributor Ken Hall 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 Perpetual Limited (ASX: PPT) share price is trending lower today after the company released a second quarter business update.

Why is the Perpetual share price falling?

The Perpetual share price is on the slide this morning after the Aussie fund manager provided an update for the quarter ended 31 December 2020 (Q2 2020). Perpetual’s total assets under management (AUM) came in at $89.2 billion. That came after the completion of its Barrow, Hanley, Mewhinney & Strauss (Barrow Hanley) acquisition on 18 November 2020.

Perpetual acquired a 75% stake in United States investment manager Barrow Hanley, tripling its assets under management. The acquisition also expanded Perpetual’s reach in the US as it builds out its global investment capabilities.

The Perpetual share price is down 3.6% at the time of writing following this morning’s update. CEO and managing director Rob Adams said Perpetual is seeing “positive momentum” in FY21 across all divisions.

Perpetual Asset Management Australia’s total AUM fell 2% to $22.7 billion due to outflows from its enhanced cash mandate. Positive market returns as well as improved Aussie equities performance helped to offset these outflows. Excluding US-based ESG investment manager Trillium, the segment’s total average AUM for the quarter was $23.5 billion compared to $23.3 billion for the September quarter.

Perpetual Asset Management International’s total AUM, including Trillium and Barrow Hanley, came in at $66.5 billion. 

Mr Adams said Perpetual’s new adviser growth strategy helped drive positive net flows into Perpetual Private during the quarter. Perpetual Private funds under advice (FUA) climbed 6% to $15.5 billion with positive net inflows of $0.2 billion.

Perpetual Corporate Trust’s FUA climbed 1% higher to $936.2 billion for the quarter with strong growth across a number of segments including Managed Fund Services (MFS) and Debt Market Services (DMS).

Foolish takeaway

The Perpetual share price is down nearly 4% in early trade following the company’s latest trading update. The benchmark S&P/ASX 200 Index (ASX: XJO) has edged 0.1% lower to 6,818.50 points in a soft start to the day.

More reading

• Why the Emerge Gaming (ASX:EM1) share price rocketed 23% higher today
• Why the Spirit (ASX:ST1) share price is surging 10% higher today
• 3 biggest risks to ASX share investors right now
• Here’s why the Fortescue (ASX:FMG) share price is edging lower
• Here’s why the Lynas (ASX:LYC) share price jumped 7% higher today

Motley Fool contributor Ken Hall 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 Perpetual (ASX:PPT) share price is falling today appeared first on The Motley Fool Australia.

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The Emerge Gaming Ltd (ASX: EM1) share price is on course to end the week with a solid gain.

In early trade, the esports and gaming technology company’s shares were up as much as 23% to 9 cents.

The Emerge Gaming share price has eased a little since then but is still up 5.5% to 7.7 cents at the time of writing.

Why is the Emerge Gaming share price storming higher?

Investors have been buying the company’s shares this morning after it provided an update on the subscription numbers of its MIGGSTER social gaming platform.

According to the release, the MIGGSTER platform has now registered over 100,000 paying subscribers. This compares to 50,860 subscriptions in mid-December.

The company has verified that it has 100,387 subscriptions, comprising 74,366 annual packages, 10,488 bi-annual packages, and 15,533 monthly packages. Management notes that this means 74% of its subscriptions sold to date are annual subscriptions, which are sold at a price of EUR69.00 per annum.

The update reveals that the subscriptions are coming from all corners of the world, but predominantly in Asia. A total of 53% of subscribers are from China (32%) and South East Asia (21%).

In light of the above, the company estimates that MIGGSTER has generated EUR5.65 million (~A$ 9.16 million) in revenue to date.

However, due to its revenue sharing and commissions, the company estimates that it will retain approximately A$3.115 million or ~34% of the subscription value received.

This may have disappointed investors and led to its shares giving back some of those early gains. Especially given that earlier this month Emerge stated that “it has banked first cash receipts from the Emerge operated MIGGSTER social gaming platform to the value of AUD$8.3 million to 31 December 2020.”

Outlook

No guidance has been provided. However, management advised that MIGGSTER subscriptions continue to show strong daily growth. It will continue to provide the market with material updates as and when they happen.

More reading

• Why BetMakers, Emerge Gaming, Infratil, & Tyro shares are pushing higher
• Why the Emerge Gaming (ASX:EM1) share price is rocketing 33% higher today

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

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