Tag: Motley Fool

Seek Limited (ASX: SEK) shares have been on fire over the last six months, gaining around 35%. In fact, the Seek share price has had an unforgettable year – tumbling to a 52-week low in March of $11.23, before rising to an all-time high of $29.04 earlier this month. 

Adding to this volatility was the short-seller attack back in October, when Seek shares plunged 10% over several days as news of the attack circulated.

Let’s take a closer look at what’s happened to the Seek share price in 2020, and what might be in store for 2021.

Seek share price under attack

In late October, a Texas-based short seller named Blue Orca Capital said Zhaopin, Seek’s Chinese job platform, was full of bogus job listings to make it appear as though there was user growth.

In a 39-page document released to the public, the short seller claimed that Zhaopin pays people to put their resumes onto the portal. 

Blue Orca also claimed Zhaopin isn’t generating any organic growth, and is only relying on acquisitions for growth.

Seek owns a 63% stake in Zhaopin, which makes up 22% of the company’s total earnings before interest, tax, depreciation and amortisation (EBITDA).

The Seek share price dropped by 10% over several days following the accusation, as the company desperately tried to calm investors.

Seek requested the ASX temporarily put its shares in trading halt at the time and the company’s share price has subsequently recovered.

Seek’s results and 2021 guidance

Seek posted a net loss of $111.7 million for the year ending 30 June 2020, as the coronavirus pandemic gripped the Australian and overseas job markets.

In its annual general meeting (AGM) in November, management said that forecasting an outlook remained challenging given the ongoing uncertainty in all markets caused by COVID-19 restrictions.

Nevertheless, the company provided guidance for FY21, saying it expected revenue to be in the order of $1,600 million in FY21, and EBITDA to be in the order of $400 million.

This compares to FY20’s revenue of $1,577.4 million and EBITDA of $414.9 million.

More about the Seek business

Seek’s Australian job platform receives 30 million visits per month, and captures 90% of total time spent online searching for jobs, dominating the Australian market. 

The company has 7 times as many paid advertisements as its closest competitor, and a 22% share of national job placements.

Social media networks like LinkedIn are encroaching on Seek’s market. LinkedIn currently has around 1% of the Australian job placements market. 

Seek has said it’s addressing the LinkedIn threat by increasing the amount of data it retains on job searches, and using data analytics to increase the value proposition to advertisers.

The company has also made inroads overseas. In addition to Zhaopin, Seek has acquired online job sites in Brazil, Mexico, Indonesia, Thailand, Malaysia, and the Philippines.

What’s in store in 2021?

Seek’s business is highly cyclical and reacts to economic events that might undermine the job market.

This was evident when the Seek share price jumped as news of a successful vaccine was released in early November, giving a boost to the economy.

After average revenue growth of 15% for the past three years, it remains to be seen where the Seek share price might be headed in 2021, especially as Australia is arguably nearing the end of the resources boom.

Having said that, an internet service aggregator requires comparatively little capital to operate, which means that when revenue builds, the company should be able to generate higher operating margins than traditional industrial companies.

The Seek share price is currently trading at $28.64, up by 0.46% for the day so far. Based on today’s prices, the company commands a market capitalisation of around $10 billion.

More reading

• The most crazy ASX chart of 2020
• 10 highly rated ASX shares to buy in 2021
• 2 blue chip ASX shares Warren Buffett would love
• Why Creso Pharma and these ASX shares just hit 52-week highs or better

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

The post Seek (ASX:SEK) share price up 35% in 6 months. Where to in 2021? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/34M30bB

With many brokers taking a well-earned break over the holiday period, broker notes are few and far between right now.

In light of this, I thought I would take a look at a few that have been released over the last few weeks that remain very relevant today.

Three buy ratings that you might want to pay attention to are listed below:

Adore Beauty Group Ltd (ASX: ABY)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $8.35 price target on this online beauty retailer’s shares. The broker notes that Adore Beauty’s trading update reveals that trading has been strong and management has upgraded its guidance for the first half. And while it is keen to see whether this was at the expense of margin, it appears supportive of giving away margin to win market share at this stage in its growth. The Adore Beauty share price is trading at $5.65 this afternoon.

Altium Limited (ASX: ALU)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $40.00 price target on this electronic design software provider’s shares. According to the note, the broker was pleased to see that Altium recently reaffirmed its FY 2021 guidance despite the tough operating environment. Morgan Stanley also notes that management spoke positively about the launch of its new Altium 365 platform. This is a big positive as the broker sees this cloud-based platform as the key driver of growth in the future. The Altium share price is trading at $34.33 this afternoon.

Metcash Limited (ASX: MTS)

Analysts at Citi have retained their buy rating and lifted the price target on this wholesale distributor’s shares to $4.00. The broker made the move following the release of a stronger than expected first half result earlier this month. Pleasingly, the broker believes more of the same is coming in the medium term thanks largely to its Hardware business. And while it acknowledges that Food sales will inevitably moderate post-pandemic, this hasn’t stopped the broker from upgrading its earnings forecasts for the next couple of years. The Metcash share price is trading at $3.45 on Tuesday.

More reading

• 2 ASX 200 shares to buy in January
• 5 fantastic ASX shares to buy in 2021
• 2 ASX growth shares to buy
• 2 top ASX shares to buy according to WAM
• 2 exciting mid cap ASX shares to buy for the long term

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 Altium. 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 Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3aOsf0E

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 payment processing company Mastercard Inc (NYSE: MA) had a turbulent year in 2020, like most other stocks in the financial sector.

But the stock has rebounded since, and overall there seems to be a lot of excitement about the company’s future. It began the year trading at $303.39 per share and recently hit $337.36, representing a gain of about 11.2%. So if you had invested $1,000 in Mastercard stock at the beginning of the year, you would now have about $1,112. You are not going to retire with that money, but you should still feel good about the gain, considering the numerous obstacles from the coronavirus pandemic.

The S&P 500 Index (SP: .INX) is up about 14.4% year to date, so while the stock came up short of that benchmark, it fared much better than a lot of companies in the financial sector. Additionally, I think Mastercard will likely benefit long term from the digital trends that will develop as a result of the pandemic.

Although you may think of Mastercard as a credit card company that makes loans, it does not actually extend credit, but makes money by charging fees on payment transactions made on its branded cards. The company suffered earlier in the year from reduced payment volume brought on by limited physical interaction and lockdowns all over the world.

But Mastercard is well positioned to take advantage of the shift by merchants and customers to a world that is more reliant on digital payments.

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

More reading

• 3 reasons Mastercard is a buy

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

The post If you put $1,000 into Mastercard stock last January, here’s how much you’d have 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.

from The Motley Fool Australia https://ift.tt/38LzDam

ResApp Health Ltd (ASX: RAP) shares are climbing higher today after the company announced it has launched its SleepCheck app on select Android devices. At the time of writing, the ResApp share price is up 6.25% to 8.5 cents.

Quick take on ResApp

ResApp is a digital health company that specialises in developing smartphone applications for the diagnostics and management of respiratory diseases. Machine learning algorithms use sound to detect and measure a variety of breathing conditions, such as breathing, snoring and coughing.

What’s driving the ResApp share price?

The ResApp share price is on the rise today following news the SleepCheck app is now available on the Google Play store for most Android smartphones. With the latest inclusion, the SleepCheck app is now available in 36 countries, and covers almost all smartphone devices.

SleepCheck is a direct-to-consumer mobile application that assesses a person’s risk of obstructive sleep apnoea. The app works using the smartphone’s microphone to pick up sounds and analyse a person’s breathing and snoring patterns. Once the user has finished sleeping, the algorithms then determine if the patient is at risk of suffering from sleep apnoea.

It requires no accessories or hardware other than the user’s smartphone to make an assessment.

It’s estimated that 936 million people suffer from sleep apnoea globally, with 80% of undiagnosed patients enduring moderate to severe breathing difficultly.

ResApp recently signed a 12-month marketing agreement with Australia’s largest consumer healthcare network, HealthEngine. The strategic partnership allows HealthEngine to integrate its booking network into the SleepCheck application.

For example, if SleepCheck identifies a person is at risk of obstructive sleep apnoea, the application will direct them to see a doctor. HealthEngine allows patients to find and connect with healthcare service providers through a dedicated landing page.

Comments from management

ResApp CEO and managing director Dr Tony Keating spoke about the launch, stating:

The Android device market is large and well- established, with over 2.5 billion devices globally and we are very pleased to have launched SleepCheck to cater for these users. SleepCheck is now available on Google Play in 36 countries, including large markets like Europe, Hong Kong and Singapore.

Uptake on iOS continues, and we expect Android download rates to add to our growing user base. The launch will also coincide with a marketing campaign in Australia and the UK to drive product awareness, which will allow ResApp to grow its market share and engage with other potential industry partners.

How did the ResApp share price perform in 2020?

The ResApp share price has fallen over 60% in the past 12 months. In comparison, the All Ordinaries Index (ASX: XAO) is trading relatively flat over the same period, down by 0.55%.

Based on the current ResApp share price, the company commands a market capitalisation of around $60 million.

More reading

• 2 growing small cap ASX shares to watch in 2021
• ASX 200 up 0.65%: Big four banks rise, tech shares charge higher, Flight Centre jumps
• This ASX share was the best IPO of 2020: fundie
• Why a2 Milk, Adacel, Dusk, & Nuheara shares are charging higher
• Why AVITA, IDP Education, Over the Wire, & Viva Energy shares are dropping lower

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Aaron Teboneras 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 Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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 ResApp (ASX:RAP) share price is climbing 6% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/34QOb7C

At the small side of the market there are a good number of companies with the potential to grow materially in the future.

Two that have been tipped as future stars are listed below. Here’s what you need to know about them:

Mach7 Technologies Ltd (ASX: M7T)

The first small cap share to look at is Mach7. It is a growing developer of enterprise imaging and informatics solutions for image viewing, storage, and workflow management. These solutions can be implemented individually or as a comprehensive end-to-end image management and diagnostic viewing platform.

The company has been experiencing strong demand for its solutions this year despite the pandemic. In fact, one of the largest healthcare Integrated Delivery Networks (IDN) has just become a customer.

Trinity Health has signed a seven-year contract for the license and associated support services for its eUnity enterprise viewer. Trinity Health is the fifth largest healthcare IDN in the United States and will be installing it across multiple facilities within its 92 hospitals.

This caught the eye of analysts at Morgans, who have reiterated their add rating and $1.49 price target on the company’s shares. Morgans suspects this contract could be the first of many due to its growing tender pipeline.

MyDeal.com.au Limited (ASX: MYD)

MyDeal.com.au is a $310 million online retail marketplace provider with a focus on furniture, homewares, appliances, technology, baby products, and hardware.

Thanks to the shift to online shopping this year because of the pandemic, MyDeal has been a very strong performer. This has continued in FY 2021, with the retailer recently reporting a 317% increase in first quarter gross sales to $56.67 million. This was driven by the aforementioned shift online and a 268% increase in active customers to 669,897.

One broker that is positive on its prospects is RBC Capital Markets. It recently initiated coverage on MyDeal with a buy rating and $1.60 price target. The broker thinks the company is at an inflection point as annualised gross transaction value exceeds $200 million and customer numbers approach 700,000.

More reading

• 2 exciting small cap ASX tech shares to buy
• 2 small cap ASX healthcare shares to watch
• Here’s how Nuix (ASX:NXL) and these recent IPOs are performing since listing
• 2 exciting small cap ASX shares to watch closely in 2021
• Top brokers name 3 ASX shares to buy 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 and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 growing small cap ASX shares to watch in 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3hqh1kd

At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week strongly. At the time of writing, the benchmark index is up 0.65% to 6,708.2 points.

Here’s what has been happening on the market today:

Bank shares higher.

The big four banks are all on form today and helping to drive the ASX 200 index higher. While all the big four are recording solid gains, the best performer in the group has been the Commonwealth Bank of Australia (ASX: CBA) share price. At the time of writing, the shares of Australia’s largest bank are up a decent 1.3%.

Tech shares on the charge.

It has been a positive start to the week for the Australian tech sector. Thanks to gains by tech stars such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX), the S&P ASX All Technology Index (ASX: XTX) is up 0.8% at lunch. This follows a positive night of trade on the technology-focused Nasdaq index. Overnight it recorded a 0.75% gain after traders cheered the US COVID-19 stimulus bill signing.

Mining shares push higher.

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares are on the rise today despite a pullback in the iron ore price. According to CommSec, the spot iron ore price eased by US$2.25 or 1.4% to US$164.25 a tonne. This was driven by a downtrend in steel prices over the weekend and cold-weather concerns in China. 

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with a 4% gain. Investors may be optimistic that New South Wales has its COVID outbreak under control now. The worst performer has been the GUD Holdings Limited (ASX: GUD) share price with a 2% decline. This is despite there being no news out of the products company.Best and worst ASX 200 performers.

More reading

• 2 star stocks for your ASX retirement portfolio
• These are the 10 most shorted shares on the ASX
• 5 things to watch on the ASX 200 on Tuesday
• Why these ASX shares have smashed the market in 2020
• 2 buy-rated ASX dividend shares for income investors to snap up

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 Appen Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 up 0.65%: Big four banks rise, tech shares charge higher, Flight Centre jumps appeared first on The Motley Fool Australia.

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

Initial public offerings (IPOs) were all the rage in the second half of this year.

But when every dog and his master are getting on the bandwagon, you’re bound to see a wide variety in substance.

“There was very high variability in the quality of new listings this year,” Prime Value portfolio manager Richard Ivers told The Motley Fool.

Some companies were clearly taking advantage of “a short-term boost” to the bottom line from the COVID-19 pandemic, he said.

“With the market placing high valuation multiples on some of these sectors, they got the double benefit of high valuation multiples on cyclically high profits.

“Others were high quality businesses with a solid long term outlook.”

So what was the best out of a motley crew?

The best of the good ones

Pengana Capital portfolio manager Chris Tan told The Motley Fool that Liberty Financial Group Pty Ltd (ASX: LFG) was the best new ASX listing in 2020.

The loan provider’s long track record as a private company gives Tan much confidence that it knows what it’s doing.

“LFG is a well-established company with a consistent history of profitability, unlike a lot of the latest IPOs. It was established in 1997 and has become a top 10 home lender in Australia,” he said.

“Surviving the GFC of 2008 is testament to its credentials in credit risk management. Its proprietary, tech-driven risk-based pricing model allows it to profitably write new business that larger players (eg the big 4 commercial banks) are often not able to.”

The Liberty IPO share price was not excessive, making it even more attractive.

“The IPO pricing was favourable at a P/E [ratio] of 11 times financial year 2021 earnings and a forecast 4% dividend yield.”

Liberty shares sold for $6 during the IPO and have bumped up to $7.90 in just two weeks since listing.

Aside from its already-strong residential loan business, Liberty still has plenty of untapped potential in other areas.

“It has growth opportunities in large addressable markets such as commercial, personal and motor loans,” said Tan.

To round out the case for Liberty shares, insider shareholdings have remained very high after the listing.

“The size of the IPO was limited with the founder group maintaining almost 80% of the shares on listing,” Tan said. 

“The main founder and shareholder [and executive director], Sherman Ma, is keeping his entire shareholding. As the most knowledgeable of insiders, when founders maintain large stakes a new investor can justifiably derive more confidence in a company’s future prospects than with a normal IPO.”

More reading

• Liberty Financial (ASX:LFG) share price jumps 12% on IPO debut

Motley Fool contributor Tony Yoo 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 This ASX share was the best IPO of 2020: fundie appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/34N01Q4

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week strongly. At the time of writing, the benchmark index is up 0.8% to 6,717.1 points.

Four shares that are climbing more than most today are listed below. Here’s why they are charging higher:

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price is up 4% to $11.38. Investors have been buying the infant formula company’s shares after they were sold off earlier this month following a guidance downgrade. It appears as though they believe the selling was overdone and the headwinds it is facing in the daigou channel are only temporary.

Adacel Technologies Limited (ASX: ADA)

The Adacel share price has jumped 8% to 96 cents. This morning the air traffic management systems provider announced its intention to conduct an on-market share buy-back during the period from 11 January 2021 to 10 January 2022. According to the release, the company will acquire up to approximately 7.6 million or up to 10% of its shares on issue.

Dusk Group Ltd (ASX: DSK)

The Dusk share price is up a sizeable 12% to $2.02. Investors have been buying the home fragrance product retailer’s shares after it provided a positive trading update. Management expects sales for the first half of FY 2021 to be in the range of $90 million to $90.5 million. That compares to $58.7 million in the first half of FY 2020. Earnings before interest and tax (EBIT) is estimated to be between $26 million and $27 million. This is up materially on FY 2020’s first half EBIT of $9.7 million.

Nuheara Ltd (ASX: NUH)

The Nuheara share price has rocketed 13.5% higher to 5 cents. The catalyst for this was a big announcement by the smart and affordable hearing solutions provider. Nuheara has signed an agreement to manufacture HP-branded products for American multinational information technology company HP Inc (NYSE: HPQ). According to the release, the hardware product purchase agreement has a contracted initial term of three years with automatic renewals for successive one-year periods.

More reading

• Why the Dusk Group (ASX:DSK) share price is rocketing 14% higher
• Why the Nuheara (ASX:NUH) share price is rocketing 23% higher today
• Top brokers name 3 ASX shares to buy next week
• These were the best performers on the ASX 200 last week
• 2 ASX growth shares to buy when the market reopens

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why a2 Milk, Adacel, Dusk, & Nuheara shares are charging higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38GbFNY

The S&P/ASX 200 Index (ASX: XJO) has returned from the Christmas break in style and is storming higher. In late morning trade the benchmark index is up 0.65% to 6,708.7 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

AVITA Medical Inc (ASX: AVH)

The AVITA share price is down 1% to $5.05. This regenerative medicine company’s shares have come under pressure this year for a couple of reasons. The first was the negative impact that COVID-19 has had on the company’s sales. The second was AVITA’s removal from the ASX 200 index at the most recent quarterly rebalance. This will have led to selling from index-tracking ETFs and fund managers.

IDP Education Ltd (ASX: IEL)

The IDP Education share price has fallen over 1% to $20.33. This latest decline means the language testing and student placement services company’s shares have now fallen over 20% since hitting a 52-week high in late November. This may be down to profit taking and concerns that the international student market will take longer to recover than first expected.

Over The Wire Holdings Ltd (ASX: OTW)

The Over The Wire share price has continued its poor run and is down a further 1% to $4.20. Investors have been selling the telecommunications, cloud and IT solutions provider’s shares since the release of a trading update. Although that update reveals that the company expects to report a 22% to 28% increase in EBITDA in the first half, this has been boosted by acquisitions. Its existing businesses will deliver lower EBITDA than a year ago.

Viva Energy Group Ltd (ASX: VEA)

The Viva Energy share price has dropped 4% to $1.88 despite there being no news out of the fuel retailer. One broker that sees this share price weakness as a buying opportunity is Goldman Sachs. It recently maintained its buy recommendation and $2.40 price target on the company’s shares. The broker notes that its shares trade at a meaningful discount to peers.

More reading

• 3 top small cap ASX shares to buy
• Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower
• Here’s what is dragging the Over the Wire (ASX:OTW) share price lower
• These are the 10 most shorted shares on the ASX
• ASX 200 Weekly Wrap: ASX hits new post-March high

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 Avita Medical Limited, Idp Education Pty Ltd, and Over The Wire Holdings Ltd. The Motley Fool Australia has recommended Avita Medical Limited and Over The Wire 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 Why AVITA, IDP Education, Over the Wire, & Viva Energy shares are dropping lower appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37Vby1J

Dusk Group Ltd (ASX: DSK) shares are rocketing higher in morning trade after the home fragrance product retailer provided a positive trading update and earnings guidance for the first half of the 2021 financial year (FY21). At the time of writing, the Dusk share price has surged 13.89% higher to $2.05.

What’s driving the Dusk share price higher?

The Dusk share price is surging this morning after the company confirmed its sales and earnings growth continued in November and December. Dusk Group reported it also ended the first half of FY21 with no drawn bank debt, significant surplus cash and a well-balanced inventory position.

Dusk’s earnings guidance for the first half of FY21 is based on unaudited financial results to the end of November and a preliminary estimate for December based on actual sales.

The company estimates sales for the first half of FY21 will be in the range of $90.0 to $90.5 million. That compares to $58.7 million in the first half of FY20. Earnings before interest and tax (EBIT) are estimated to be between $26.0 and $27.0 million. EBIT in the first half of FY20 was $9.7 million.

Commenting on the company’s performance, Dusk CEO Peter King said:

The results delivered across the first half of FY21 are well ahead of the results delivered in the prior corresponding period despite a significant period of disrupted trade in Melbourne. They build on the strong results delivered across the past three years and further demonstrate the success of our focused strategy and the ability of our team to execute, including in a volatile environment where agility has been key.

Dusk Group snapshot

Dusk is a specialty retailer of home fragrance products. The company offers a range of Dusk branded products, both from its physical stores and online. Its products include candles, reed diffusers, essential oils, electronic diffusers and air purifiers, and fragrance related homewares.

The company is a newcomer to the ASX, with Dusk shares commencing trading on 2 November 2020. While the reintroduction of lockdown measures in Victoria during its early trading weeks impacted instore sales, Dusk’s online presence offered consumers an alternative to brick and mortar shopping.

Dusk shares closed the first day of trading at $1.69. The Dusk share price reached a previous closing high of $1.92 on 10 December. At time of writing, shares are trading for $2.05 which represents a share price gain since 2 November of more than 21%.

By comparison the All Ordinaries Index (ASX: XAO) is up 13.34% over that same period.

More reading

• Why the Nuheara (ASX:NUH) share price is rocketing 23% higher today
• Why the DroneShield (ASX:DRO) share price is jumping 6% today
• FAANG stocks make their case to lead the Nasdaq in 2021
• 2 star stocks for your ASX retirement portfolio
• Why the BetMakers (ASX:BET) share price is surging higher

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

The post Why the Dusk Group (ASX:DSK) share price is rocketing 14% higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37T1Wo4