Tag: Motley Fool

The S&P/ASX 200 Index (ASX: XJO) went up by 1.2% today to 6,757 points.

Here are some of the highlights from the ASX:

Transurban Group (ASX: TCL) asset sale and traffic update

The toll road operator revealed that it has agreed to sell a 50% interest in its Chesapeake assets to AustralianSuper, Canada Pension Plan Investment Board (CPP Investments) and UniSuper for gross sale proceeds of AU$2.8 billion, plus a potential earn-out between FY24 and FY26 of up to AU$93 million.

Chesapeake comprises Transurban’s Greater Washington Area operational assets.

Transurban said the sale introduces strategically aligned partners with a track-record of working alongside Transurban in Australia on assets in Queensland and Sydney. The roll road business said that AustralianSuper, CPP Investments and UniSuper each bring significant infrastructure investment experience and relationships to the partnership.

The Transurban Chesapeake partners have exclusive development rights to invest alongside Transurban on future brownfield and greenfield opportunities in the Commonwealth of Virginia, State of Maryland and Washington DC as well as enhancements to existing concessions.

Transurban CEO Scott Charlton said: “This transaction realises significant value for security holders while enabling accelerated growth in North American and Australia, where we see a number of opportunities starting to materialise.

“The Transurban Chesapeake partners are committed to growing alongside Transurban in North America and we look forward to pursuing new opportunities with their financial and strategic support.”

The Transurban share price went up 1.2% today.

Pro Medicus Ltd (ASX: PME)

Pro Medicus announced today it had signed a 5-year, $18 million deal with MedStar Health. The company’s Visage technology will replace MedStar’s legacy PACS across 10 hospitals, representing the largest health system in the Maryland and District of Columbia (DC) region.

The contract is for the full suite of Visage 7 modules, including Visage 7 Viewer, Visage 7 Open Archive and Visage 7 Workflow. The Visage 7 platform will be fully deployed in the public cloud using the Google Cloud Platform.

Pro Medicus said this contract is a transaction-based model with potential upside, and it extends Pro Medicus’ rapidly growing footprint North America.

The Pro Medicus share price went up by 3.3% today.

Bapcor Ltd (ASX: BAP)

Auto parts business Bapcor released another trading update today.

The company was pleased to tell investors that its strong growth has continued since the October trading update.

For the five months to the end of November, group revenue was up around 26%. Management said the company was achieving operating leverage from lower expenses in areas such as travel and other areas of discretionary expenditure, as well as lower interest rates and the contribution from Truckline which was not included in the prior corresponding period.

For the first half of FY21 Bapcor is expecting to achieve revenue growth of at least 25% over the prior corresponding period in FY20, with net profit after tax (NPAT) increasing by at least 50% compared to the prior corresponding period.

Darryl Abotomey, Bapcor CEO and managing director, said: “We are very pleased with the strong performance of Bapcor’s businesses. Trade and wholesale represent over 80% of Bapcor’s business, with retail at approximately 20%. Historically, trade focussed businesses perform solidly in difficult economic conditions – which is again borne out of Bapcor’s current performance.”

Bapcor also said that the construction of the new Victorian distribution centre is progressing well. The company said this is an exciting development that will deliver significant operational benefits.

The Bapcor share price went up around 3% today.

Zip Co Ltd (ASX: Z1P)

The Zip share price went up 1% today after the buy now, pay later business announced a capital raising and the successful completion of the placement.

Zip said that it has raised $120 million before costs through its fully underwritten placement at a raising price of $5.34, which was a 4.1% discount to the last traded price on 16 December 2020.

Larry Diamond, the managing director and CEO of Zip said: “The additional growth capital will enable Zip to capitalise on the successful acquisition of QuadPay in the US, scale Zip’s operations in the UK, lead the active pursuit of global growth opportunities and support the launch of Zip Business.”

Zip said that some of the raised money will be used to acquire Spotii, a BNPL operator headquarterd in the UAE as well as Twisto which is a payments platform operating in Czechia and Poland, with the ability to passport licensing across the EU.

More reading

• Leading broker just upgraded these ASX gold stocks to “buy”
• ASX stock of the day: Why are Netwealth (ASX:NWL) shares up 7%?
• Why the ASX 200 could be the Nasdaq of 2021
• Why Codan, Pro Medicus, Uniti, & Zip shares are storming higher
• Some things ASX investors should watch out for in 2021

Tristan Harrison 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’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor and Pro Medicus Ltd. The Motley Fool Australia owns shares of Transurban Group. 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 rises on Thursday appeared first on The Motley Fool Australia.

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

There’s been no movement in the Etherstack PLC (ASX: ESK) share price today after the company announced a trading halt this morning. Etherstack shares were trading at 64 cents prior to the halt, which was requested by the company pending a further announcement regarding a “material capital raising”.

The Etherstack share price has performed well this year, gaining a huge 220% in year-to-date trading. 

What Etherstack does

Etherstack is a wireless technology company that specialises in developing, manufacturing and licensing mission-critical radio technologies. The company primarily works with wireless equipment manufacturers and network operators around the globe, including the likes of Samsung Electronics and Cisco Systems Inc.

The company was founded and is based in Sydney, but is twice as large offshore than onshore. It first listed on the ASX in 2012 and is focused on the public safety, defence, utilities, transportation and resources sectors.

What happened?

This morning, trading in Etherstack shares was halted as the company announced it would be undertaking a capital raising.

Etherstack stated it would be raising material capital by way of an institutional placement. This means that only institutions, not retail investors, will have access to the additional shares at a discounted price. The company did not state whether the placement was underwritten or not.

What Now?

With the trading halt expected to last until 21 December, it is unlikely any Etherstack shares will change hands until next week. This is unless there is a prior announcement by the company prior to the market’s close on Friday this week.

In announcing the capital raising, it’s likely management is seeking to benefit from the company’s elevated share price. Etherstack shares notably soared by 1358% in June on the back of major contract win announcements. The company’s shares were trading as high as $1.75 as a result of it signing a global teaming agreement with Samsung Electronics for public safety communications.

Since its extraordinary rise, the Etherstack share price fell sharply in early July and has been trading around its current levels over the last six months. 

More reading

• Etherstack (ASX:ESK) share price falls despite solid guidance
• The Etherstack (ASX:ESK) share price is soaring 10% higher today. Here’s why.

Motley Fool contributor Daniel Ewing 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 Etherstack (ASX:ESK) shares halted as capital raising announced appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Wn4GUf

Qantas Airways Limited (ASX: QAN) has won an appeal to reverse an earlier court ruling that it had inappropriately pocketed JobKeeper payments meant for staff.

The full Federal Court on Thursday quashed the original September judgment made by a single judge. 

The reasoning was that adhering to that decision would have posed an excessive level of administrative burden on employers. The judges deemed that would not have been the intent of the government when it started the COVID-19 assistance scheme.

The dispute between the airline and unions was around wages paid in arrears. Qantas had been counting arrears payments towards the JobKeeper payment, whereas unions argued staff should be receiving both the wage owed and the government subsidy.

Qantas understandably welcomed the decision to uphold its appeal.

“We have always made JobKeeper payments to our employees according to advice from the Australian Tax Office,” said a spokesperson for the airline.

“Most of the JobKeeper payments Qantas has received went straight to employees who were stood down.”

The original decision was considered to have potential to affect other businesses that paid the subsidy out in a similar way to Qantas.

Qantas gets fired up

The airline on Thursday accused the unions of “making false claims and misleading our employees”.

“The court has found we are administering JobKeeper as the government intended,” the Qantas spokesperson said.

“Every Qantas and Jetstar employee, whether they have been working or stood down, was paid at least $1500 per fortnight in line with the requirements of the first stage of JobKeeper, and then the reduced amounts specified by the government.”

The Motley Fool has contacted the Transport Workers’ Union (TWU) and the Australian Services Union (ASU) for comment.

The spokesperson added the company had always paid penalty rates and overtime in the same manner as it did this year.

“This is not something we just started doing during COVID. Rostering arrangements during the stand down period was done in consultation with unions.”

This is not the only spat Qantas has had with its employees this year. The two sides engaged in a public slanging match over the decision to sack 2,000 workers and outsource their functions. 

That saga is headed to the courts after TWU decided it would take legal action. 

The latest good news for Qantas comes after it revealed Wednesday its budget arm Jetstar would be flying above pre-COVID levels by March.

The brand is now enjoying a monopoly in that leisure subsector with TigerAir having folded and Virgin intending to go mid-market.

Qantas shares were down 0.59% in late Thursday trade, to sell for $5.06.

More reading

• Why the Regional Express (ASX:REX) share price is soaring 10% higher today
• Qantas (ASX:QAN) budget flights to exceed pre-COVID levels by March
• ASX 200 rises on Monday
• Why I’m sticking with my Afterpay shares: fundie
• This is when ASX airport shares will take off

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. 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 Qantas (ASX:QAN) didn’t rort JobKeeper, rules court appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38dGw42

The CogState Limited (ASX: CGS) share price is going ballistic today, up 44% at the time of writing.

This will come as more good news to longer-term shareholders, who’ve seen the share price rocket 207% since the closing bell on 31 December last year.

By comparison the All Ordinaries Index (ASX: XAO) is up just under 3% over that same time.

What does CogState do?

Founded in 1999, CogState is a neuroscience technology company. The company provides technology and services to measure cognition and optimise the assessment of brain health to aid in new medicine development and provide earlier clinical insights. Its operating segments include clinical trials, healthcare, and research.

CogState shares first listed on the ASX in 2004. At the current share price, CogState has a market cap of approximately $141 million.

Why has the CogState share price been charging higher?

CogState finished last year trading at 39 cents per share. And it hasn’t been a straight uphill run to the current $1.20 per share.

Like most every ASX share, CogState didn’t escape the ravages of the COVID-19 driven market panic earlier this year. From 10 January through to 23 March, the CogState share price plunged 47%. If you were savvy or lucky enough to buy shares at that low, you’d be sitting on a gain of 313% today, far outpacing the 53% gains posted by the broader All Ords. 

CogState shares received a huge lift in late July after the company released its quarterly cash flow statement and business update. That revealed a new record high in sales contracts that made 2020 its most successful financial year to date.

Share largely continued to trend higher from late July until receiving another turbo boost towards the end of October. That boost came on the back of the company announcing an agreement with Japanese pharmaceutical firm, Eisai. In exchange for the right to exclusively distribute CogState’s digital cognitive assessment technologies, Eisai agreed to an upfront payment of US$15 million as well as paying CogState a royalty on sales.

That gives us some background to CogState’s explosive share price growth in 2020.

As for the 44% intraday share price gain today? It appears to be happening on no new market news.

More reading

• Qantas (ASX:QAN) didn’t rort JobKeeper, rules court
• Leading broker just upgraded these ASX gold stocks to “buy”
• Recent development sends the Antisense (ASX:ANP) share price soaring 45%
• 2 high quality ETFs for ASX investors to buy
• Top brokers name 3 ASX shares to sell today

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 CogState (ASX:CGS) share price up 44% today and a mind-blowing 207% in 2020 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2WkVe3R

ASX gold stocks are rising with the market but there’re two that are leading the charge after getting upgraded by Citigroup.

These upgraders are the Northern Star Resources Ltd (ASX: NST) share price and Saracen Mineral Holdings Limited (ASX: SAR) share price.

These stocks jumped 3.1% to $12.57 and 2.8% to $4.72, respectively, in late trade.

ASX gold stocks not shining as brightly

In contrast, the S&P/ASX 200 Index (Index:^AXJO) rallied by around 1% ahead of the market close today.

Other gold miners aren’t faring as well. The Newcrest Mining Ltd (ASX: NCM) share price and Evolution Mining Ltd (ASX: EVN) share price are lagging behind with a 0.2% to 0.5% gain.

Latest ASX gold stocks to be upgraded to buy

The Northern Star share price and Saracen share price outperformance coincided with Citigoup’s decision to upgrade both to “buy” from “neutral”.

What’s interesting is that the upgrades came at the same time Citi was downgrading its gold price forecasts.

Gold price close to peak

“Citi’s commodity team has downgraded its outlook for gold, now calling for ‘peak gold’ in 2021 before unwinding in 2022 based on vaccine news and sharp global growth,” said the broker.

“We update our estimates accordingly seeing material cuts to earnings, NPVs and target prices across our coverage universe.”

The broker expects the price of the precious metal to make a fresh push to above US$1,975 an ounce in the next six to nine months. This should be enough to push the average gold price to new record highs in 2021.

Gold getting hammered by rising risk appetite

However, the party won’t last. Citi is tipping the gold price to fall. Its long-term price assumption is US$1,400 an ounce (adjusted for inflation).

What’s taming the broker’s bullishness towards the safe haven asset are the risks that the US Federal Reserve could turn hawkish as the COVID‐19 recovery unfolds.

The big jump in industrial metals like copper is adding to the view that investors are rotating towards risk assets and away from safe havens.

The recent downtrend in the US dollar is also further evidence that the great rotation is already unfolding, in my view. After all, the greenback is seen as the world’s reserve currency and is in demand when things look dicey.

Merger potential a saving grace

What the NST share price and SAR share price have going for them is their potential merger.

“SAR remains our preference heading into the deal,” added Citi.

“MergeCo should be the second-largest gold producer on the ASX and one of a handful that can deliver meaningful growth over the next couple of years.”

But both stocks aren’t immune from the lower gold price forecasts. Citi’s 12-month price target on the Northern Star share price falls by $2 to $13.90 a share.

The Saracen share price target is also cut to $5.30 from $6.20 a share.

More reading

• ASX stock of the day: Why are Netwealth (ASX:NWL) shares up 7%?
• Why the ASX 200 could be the Nasdaq of 2021
• Some things ASX investors should watch out for in 2021
• ASX 200 up 0.7%: Zip capital raising, A2 Milk trading halt, Sydney Airport dividend update
• Citigroup picks the best ASX retail stocks to own for 2021

Motley Fool contributor Brendon Lau owns shares of Evolution Mining Limited and Newcrest Mining Limited. 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 broker just upgraded these ASX gold stocks to “buy” appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3p01zOp

The Antisense Therapeutics Ltd (ASX: ANP) share price is storming high today. This comes as the biotech company made a recent announcement on a decision by the European Commission on one of its medicinal products.

At the time of writing, the Antisense share price is up an astonishing 31.82% to 14 cents, after rocketing by as much as 45% earlier this afternoon. Indeed, the All Ordinaries Index (ASX: XAO) pales in comparison, moving 0.9% higher to 6,976 points.

What’s rocketing the Antisense share price higher?

Investors are running in droves to get a hold of Antisense shares after this latest development.

Just days ago, the European Commission advised it had granted orphan drug designation for Antisense’s ATL1102 medicinal product for Duchenne muscular dystrophy.

The positive outcome was a result of the favourable opinion issued by the European Medicines Agency (EMA) Committee last month. The company also recently obtained orphan drug designation and rare paediatric disease designation for ATL1102 in the United States.

Achieving orphan status in the European Union allows Antisense to receive development and marketing incentives. These concessions include reduced fees on scientific advice and the marketing authorisation application. In addition, the company will be granted market exclusivity for 10 years upon regulatory approval. A further 2 years can be added for its paediatric use in the treatment of Duchenne muscular dystrophy.

What did the head of Antisense say?

Mr Mark Diamond, Antisense managing director and CEO, commented on the result:

We are very pleased the EC has adopted the decision to designate ATL1102 for DMD as an Orphan Drug in the EU. We have now successfully achieved orphan drug designation in Europe and orphan drug and rare paediatric disease designations the US, the world’s major pharmaceutical markets.

We expect that the incentives that come from such designations including marketing exclusivity periods will be of very significantly commercial value should ATL1102 be successful in its progress through development and ultimately achieve marketing approval.

How has the Antisense share price performed recently?

The Antisense share price has reached a multi-year high today on the back of the European Commission’s decision.

At the start of the year, its shares were swapping hands for 9 cents and now they are trading for 14 cents per share — a gain of more than 55%.

More reading

• With the Archer Materials (ASX:AXE) share price up 222% this year, what’s next?
• Why the BSA (ASX:BSA) share price has surged 7% higher today
• Why the Uniti (ASX:UWL) share price is on watch today
• Why Meteoric Resources (ASX:MEI) share price is soaring 6% higher
• Why the Cardiex (ASX:CDX) share price, up 73% in 2020, is gaining again 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 Recent development sends the Antisense (ASX:ANP) share price soaring 45% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3p0Km7m

Exchange traded funds (ETFs) provide investors with an easy way to invest in a large number of shares through just a single investment. This includes whole indices, commodities, or even investment themes.

Unsurprisingly, this has gone down well with investors and has led to their popularity surging in recent times. In fact, November was another record-breaking month for the local ETF industry.

If you’re looking to join in on the action, then you might want to get better acquainted with the two ETFs listed below:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector. This includes a number of cybersecurity giants and emerging players, such as Accenture, Cisco, and Cloudflare, Crowdstrike, and Okta.

With cybercrime on the rise, BetaShares notes that demand for cybersecurity services is expected to grow strongly for the foreseeable future. This could lead to this side of the market outperforming the broader market over the coming years.

And with the cybersecurity sector heavily under-represented on the ASX, this ETF ensures that Australian investors don’t miss out on these potential returns.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

When it comes to choosing shares to buy, Warren Buffett often talks about companies with moats. These are sustainable competitive advantages, which over the long run have supported earnings growth and underpinned strong returns for the legendary investor.

Identifying companies with moats can be time-consuming for retail investors. Luckily, VanEck has done the hard work for you and put together a fund with 48 US-based stocks which have sustainable competitive advantages.

Among its holdings are the likes of Amazon, American Express, Boeing, Coca-Cola, Microsoft, Pfizer, and Yum! Brands. Over the last five years the ETF has generated a net return of ~16% per annum for investors.

More reading

• 2 ETFs delivering solid returns
• 2 quality ETFs to buy for long-term investing
• 2 ETFs for ASX tech investors to buy today
• 4 ASX growth shares to buy in December
• Why this ASX cybersecurity ETF is a buy today

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 BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 high quality ETFs for ASX investors to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3gTUNa5

On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Estia Health Ltd (ASX: EHE)

According to a note out of Morgan Stanley, its analysts have downgraded this aged care operator’s shares to an underweight rating with a reduced price target of $1.50. The broker made the move after downgrading its earnings estimates for Estia Health. It believes that the company’s earnings will remain challenged until the Royal Commission into the sector is finalised. The Estia Health share price is trading at $1.72 today.

News Corporation Class B Voting CDI (ASX: NWS)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and US$15.00 price target on this media giant’s US listed shares. While the broker acknowledges that potential changes in Australia, in relation to social media companies paying for content, could be a big positive for the company, it isn’t enough for a change of rating. The broker continues to believe that News Corp’s shares are overvalued and its earnings outlook is challenging. The US listed shares of News Corp last traded at US$17.64, which implies potential downside of approximately 15%.

St Barbara Ltd (ASX: SBM)

Analysts at Macquarie have retained their underperform rating and $2.40 price target on this gold miner’s shares. This follows the company’s investor briefing, which highlighted new opportunities at its Gwalia mine. The broker notes that the company intends to undertake a new province strategy to fill its under-utilised mill and then develop provincial open pit and historic stockpile opportunities. While this has the potential to be a positive, it isn’t enough to sway Macquarie. It is holding firm with its bearish rating for the time being. The St Barbara share price is fetching $2.48 on Thursday afternoon.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to buy today
• News Corp (ASX:NWS) shares sink after Foxtel buyout rejected
• ASX stock of the day: Japara Healthcare (ASX:JHC) share price soars 23%

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 Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

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

The Netwealth Group Ltd (ASX: NWL) share price is surging today, up 6.78% to $17.02 at the time of writing. Netwealth shares had closed at $15.88 a share yesterday, and opened at $16.25 this morning, climbing as high as $17.17 before settling at their current level.

At this level, the Netwealth share price has delivered a year-to-date return of more than 110% to investors, making it one of the best performing ASX financials shares of 2020 so far.

In fact, coming off the 52-week low of $4.80 we saw back in March, Netwealth is up more than 220%. In saying that, the company is still not at its 52-week high at these levels. Netwealth shares hit $18.67 back in mid-October, and remain almost 10% off that level even after today’s gains.

So what is this high-flying company? And why are its shares climbing today?

What is Netwealth?

Netwealth is a $4.05 billion company that plays in the wealth management space. It offers a ‘platform’ service that allows individuals and financial advisors to access and manage a range of financial products and services.

Managing a portfolio of different assets can be difficult for ordinary ‘retail investors’ like you and me. Different investment classes and assets like individual ASX shares, internationally-listed shares, managed funds, foreign currencies, bonds and fixed-interest investments, term deposits, exchange-traded funds (ETFs) and superannuation accounts (not to mention tax records) are usually held through different providers or brokers. Thus, it can be difficult to ‘keep track’ of these different investments for many people.

That’s where Netwealth’s market lies. Its flagship ‘Wealth Accelerator’ platform offers a place to keep track of all of these assets, as well as other services like pensions, self-managed super funds (SMSFs), and insurance. Users can also use tools like dollar-cost averaging and income reinvestment as well as researching reports on companies and investments.

Financial advisors can also use the platform on behalf of their clients.

Why has the Netwealth share price had such a good day, and year?

Unfortunately, there is no obvious reason why Netwealth shares are outperforming today. The last market announcement the company made to the ASX was back in early November. As a case in point though, Netwealth shares are up almost 7% today, whereas the S&P/ASX 200 Index (ASX: XJO) is up just 0.87%.

However, another company in Netwealth’s space is also experiencing outsized gains. Hub24 Ltd (ASX: HUB) shares (a Netwealth competitor) are up 3.25% at the time of writing.

So, it’s possible that today’s moves are just some optimism over the objectively fantastic year the company has had. Back in August, Netwealth released its earnings report for the 2020 financial year. In this report, the company outlined how revenues were up 25.9%, net income rose 25.5% and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 24.8%

ASX data shows that trading volume for Netwealth shares has ticked significantly higher over both today and yesterday – both days coming in far above Netwealth’s average volume over the past five days.

The competition scored an own goal

Another possible reason investors are appreciating Netwealth shares of late could be the disruption the financial services industry as a whole has been experiencing since 2018.

The 2018 banking royal commission was heavily critical of the big four ASX banks and their wealth management arms. Especially the level of ‘vertical integration’ that was going on (i.e. how the banks’ financial advisors were recommending their own products and services to customers). This has since resulted in Commonwealth Bank of Australia (ASX: CBA) selling a stake in Colonial First State, and National Australia Bank Ltd (ASX: NAB) deciding to offload MLC. Other wealth managers like AMP Ltd (ASX: AMP) and IOOF Holdings Limited (ASX: IFL) didn’t come out unscathed either.

These companies are all more or less direct competitors to both Netwealth and Hub24. According to reporting in the Australian Financial Review (AFR) earlier this year, retail customers did not fail to notice those companies’ tarnished reputations, providing Netwealth with a healthy tailwind going into 2020. It seems this tailwind has paid off over the year, if the company’s earnings numbers are anything to go by. Perhaps investors are today betting this will continue into the new year.

More reading

• Why the ASX 200 could be the Nasdaq of 2021
• Some things ASX investors should watch out for in 2021
• Here are the best 5 ASX financials shares of 2020
• ASX 200 up 0.7%: Zip capital raising, A2 Milk trading halt, Sydney Airport dividend update
• Citigroup picks the best ASX retail stocks to own for 2021

Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd and Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX stock of the day: Why are Netwealth (ASX:NWL) shares up 7%? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3aiva1n

The Codan Limited (ASX: CDA) share price has been charging higher for a second day in a row.

In afternoon trade the technology company’s shares were up 12% to $11.32.

This means the Codan share price is now up over 18% over the last two trading days.

Why is the Codan share price rocketing higher?

Investors have been scrambling to buy the company’s shares this week following the release of its guidance for the first half of FY 2021.

According to the release, Codan has been experiencing very strong demand for its metal detectors from both the recreational and commercial markets.

This has been supported by the realisation of benefits from an expanding geographic spread, increased distribution into mass market retail channels, and an investment to increase manufacturing capacity.

It has also offset a particularly disappointing performance by Codan’s Tactical Communications business. This business is expected to deliver a first half result significantly down on the prior corresponding period.

All in all, management is expecting Codan to deliver another record first half profit for the six months ending 31 December.

It has provided guidance for a net profit after tax of $40 million for the half. This is up by 33% from $30 million a year earlier.

What about the full year?

Management is refusing to get carried away with the first half performance and will not be providing guidance for the second half.

Particularly given how the second half is usually the stronger half for metal detector sales. It believes it is too early to determine if sales have been pulled forward and the traditional second-half weighting will materialise this year.

Though, one positive is that there is strong market anticipation about the launch of its new feature packed detector in the third quarter of FY 2021. In addition, it has advised that the Communications business will enter the second half with an order book in excess of $30 million.

It expects both to contribute to a strong full year result.

More reading

• Why Codan, Pro Medicus, Uniti, & Zip shares are storming higher
• Why the Codan (ASX:CDA) share price is surging 5% higher today

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

The post Here’s why the Codan (ASX:CDA) share price rocketed 12% higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3r22D69