Tag: Motley Fool

The emerging cannabis industry has received another vote of confidence, after the United States House of Representatives passed a historic bill to end a federal ban on marijuana last Friday.

The proposal has yet to be signed into law. However it’s given a boost to Australia’s cannabis industry, including ASX-listed Creso Pharma Ltd (ASX: CPH). The Cresco share price is surging 30% higher to 13 cents at the time of writing.

US Senate to vote on the new bill

The US House of Representatives on Friday voted on the Marijuana Opportunity Reinvestment and Expungement Act, popularly known as the MORE Act. The Act decriminalises cannabis and clears the way to erase non-violent federal marijuana convictions. 

In the vote count, 228 voted in favour of passing it while 164 were against.

However, the bill will have to pass Senate approval before it’s enacted into law. Analysts have said the Senate is unlikely to approve the bill due to bipartisan disagreements on the issue.

If approved, the MORE Act will open a pathway for ownership opportunities in the emerging industry. Projections from a cannabis industry market research firm, Brightfields Group, estimate it to be worth around $19 billion in sales this year – in the US alone.

Recent United Nations (UN) landmark announcement

The trend toward normalising cannabis has been gaining ground globally.  Last week, the UN announced a landmark decision to reclassify cannabis as a less dangerous drug.

That decision will see the UN Commission on Narcotic Drugs withdraw cannabis from Schedule IV classification. Schedule IV substances are considered the most dangerous and addictive drugs.

The UN said that cannabis would be reclassified as a Schedule I substance, which is the least restrictive drug classification.

Cresco share price to benefit 

In the wake of the UN ruling, Creso said it was extremely well-positioned to benefit, and that it would unlock multiple near-term opportunities. The Cresco share price rose by 8% after that announcement.

Cresco announced today the new development in the US also placed the company in a good position to capitalise on opportunities in the US market.

The company has an established global distribution network in the US that will benefit from the legislation. In addition, its Canadian subsidiary, Mernova, can scale up operations to meet potential demand from the US market.

The company says Mernova is a fully licenced 24,000 square-foot cultivation growing facility, and is ideally located to cater to both Canadian and US markets. 

Cresco co-founder and director Boaz Wachtel is optimistic about Cresco’s future, saying:

This is a historic ruling that has the ability to create significant growth opportunities in our burgeoning industry.

It follows similar regulatory shifts in the European Union and from the United Nations that highlight public acceptance for cannabis and cannabidiol-derived products, is at an all time high.

The Creso share price has risen by more than 250% since 27 November, including the 30% price rise today. The company currently commands a market capitalisation of around $69 million.

More reading

• Creso Pharma (ASX:CPH) share price up 8% today, 200% in a week
• Elixinol (ASX:EXL) share price tumbles on capital raising update

Motley Fool contributor Eddy Sunarto 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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ASX lithium shares, Orocobre Limited (ASX: ORE), Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS) all soared more than 50% in November. Could this be the beginning of a new lithium run? 

A long road ahead for lithium prices 

While ASX lithium shares were running hot in November, the lithium spot price continued to sit near multi-year lows. Fastmarkets highlights a potential bottom for lithium prices with a recent small recovery. China’s battery-grade lithium carbonate prices started to uptrend on tight supply and bullish market sentiment. Overseas, lithium hydroxide prices moved up in both European and United States markets. 

To add some perspective, Orocobre was selling its lithium at an average price received of US$3,102 per tonne while its cost of sales was US$3,974 per tonne for the quarter ending 30 September 2020. Its gross cash margins for the quarter were negative at US$872 per tonne, but the company expects these to improve with better pricing in the second quarter of FY21.

Global EV adoption to drive lithium demand surge 

Galaxy Resources raised $161 million last week to enable the company to accelerate its developments to take advantage of the emerging European and North American electric vehicle (EV) growth surge. 

In the company’s capital raising presentation, it pointed to COVID-19 supply-side interruptions and strong recovery in EV sales as drivers of lithium prices. 

Iron ore markets faced similar supply-side disruptions causing spot prices to push higher. In the case of lithium producers, not only have they faced supply-side interruptions and challenging spot prices, but also financial-related challenges that have pushed producers to the brink of collapse. Pilbara Minerals, for example, has entered into an agreement to acquire the shares in Altura Lithium Operations Pty Ltd.

According to Galaxy, global EV sales are forecast to grow as high as 30% compounded annual growth rate in the next decade. This plays into the narrative of a phased reduction in CO₂ emissions mandated in China and much of Europe. Government stimulus and country-level subsidies are also expected to support EV and renewables adoption. 

Ready to pounce at higher prices 

ASX lithium companies have largely curbed production due to poor market conditions. However, they remain ready to pounce at the prospect of improved prices. Pilbara has opted to moderate its production over the last 15-18 months, aligning production to sales and inventory, and preserving working capital. Similarly, Galaxy’s flagship mine, Mt Cattlin, has been producing at 50% to 55% of its nameplate capacity and examining the potential ramp up to full capacity, subject to market conditions and inventory.

More reading

• These are the 10 most shorted shares on the ASX
• Why the PIlbara Minerals (ASX:PLS) share price is charging higher
• Fund managers have been buying Galaxy Resources (ASX:GXY) and this ASX share
• Why Air NZ, Bega Cheese, Fisher & Paykel Healthcare, & Galaxy are pushing higher
• Why the Galaxy Resources (ASX:GXY) share price is tumbling lower today

Motley Fool contributor Lina Lim 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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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a positive note. The benchmark index is currently up 0.7% to 6,679 points.

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

Metcash jumps on half year results release.

The Metcash Limited (ASX: MTS) share price is jumping higher following the release of a strong half year result. For the six months ended 31 October, Metcash reported a 12.2% increase in group revenue to $7.1 billion and a 43% lift in underlying profit after tax to $129.6 million. Food sales were up 9.5%, Liquor sales rose 14.3%, and Hardware sales jumped 20.6%. Pleasingly, this positive momentum has carried over into the second half.

Iron ore producers storm higher.

Iron ore producers including BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are charging higher on Monday after the price of the steel making ingredient surged higher again. According to CommSec, on Friday the spot iron ore price jumped a further 5.4% to US$145.30 a tonne. News that Vale has downgraded its production guidance and robust demand have given prices a boost.

Xero shares given buy rating.

The Xero Limited (ASX: XRO) share price is charging higher today after analysts at Goldman Sachs slapped a buy rating and $157.00 price target on its shares. Goldman believes the cloud-based business and accounting software provider’s total addressable market will increase significantly in the future. Combined with attractive unit economics, the broker believes the long-term earnings opportunity for Xero is material.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Monday has been the Metcash share price with a 9.5% gain following its half year results release. The worst performer has been the IDP Education Ltd (ASX: IEL) share price with a 3.5% decline. This appears to be down to profit taking after strong gains over the last couple of months.

More reading

• Why Fortescue, Metcash, Nuix, & Xero shares are storming higher
• Metcash (ASX:MTS) share price jumps 8% after strong first half growth
• Why ASX iron ore stocks are set to rally today
• Leading broker puts buy rating on Xero (ASX:XRO) share price
• 5 things to watch on the ASX 200 on Monday

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 Idp Education Pty Ltd and Xero. 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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Santos Ltd (ASX: STO) shares are lifting today on news the company has signed a 10-year agreement to sell liquefied natural gas (LNG) to Japan’s Mitsubishi Corp.

The Santos share price is currently trading up 2.52% at $6.52 after reaching a morning high of $6.58.

What’s in the deal

Santos says the deal represents the first long-term sale from one of its major LNG projects. It will supply 1.5 million tonnes per annum of LNG to Mitsubishi  from its Barossa project for 10 years, with extension options.

The price will be based on the Platts Japan Korea Marker (JKM), a benchmark price for spot physical cargoes of LNG. The JKM Index is often referenced in spot deals, tenders and contracts both in Northeast Asia and globally. 

Santos said Barossa was a globally-competitive, low-cost brownfield LNG project providing new supply into a tightening LNG market, where JKM-based pricing is an increasingly deep and liquid price marker for both sellers and buyers. 

In the deal, Santos also has options to pursue further LNG transactions through commercial flexibilities negotiated with Mitsubishi. These include collaborating on opportunities relating to Santos’ Moomba carbon capture and storage (CCS) project. In addition, the pursuit of carbon neutral LNG, bilateral agreements for carbon credits, and potential future development of zero emissions hydrogen.

Santos’ investment in the Barossa project

The company currently holds a 62.5% operated interest in the Barossa joint venture, along with South Korean energy company SK E&S which owns 37.5%. Santos is also a joint venture partner and operator in Darwin LNG with a 68.4% interest.

Completion of the planned sell-downs to SK E&S and Japanese power company JERA, announced in early 2020, will see Santos’ interests in Darwin LNG and the Barossa project change to 43.4% and 50%, respectively. The sell-downs are subject to customary consents, regulatory approvals, and final investment decisions.

About the Santos share price

The Santos share price has lost around 20% in 2020. Although the share price has rebounded by 140% from its lows in March, it’s still a long way off from its 52-week high of $9.07.  Santos currently commands a market value of $13.2 billion.

More reading

• 5 things to watch on the ASX 200 on Monday
• Can OPEC deliver more share price gains for Santos (ASX:STO) and Woodside (ASX:WPL)?
• 5 things to watch on the ASX 200 on Thursday
• Santos (ASX:STO) share price rated top buy in sector by Citigroup
• Which ASX 200 sectors performed the best in November? 

Motley Fool contributor Eddy Sunarto owns shares of Santos 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.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has continued its positive run and is pushing higher. At the time of writing, the benchmark index is up 0.7% to 6,680.6 points.

Four shares that are climbing more than most are listed below. Here’s why these shares are storming higher:

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is up 4% to $21.44. Investors have been buying the iron ore producer’s shares after the price of the steel making ingredient continued its ascent. On Friday the spot iron ore price jumped a further 5.4% to US$145.30 a tonne. This has been driven by strong demand and news that mining giant Vale is cutting its production guidance.

Metcash Limited (ASX: MTS)

The Metcash share price has jumped 9% higher to $3.51. This follows the release of a strong half year result this morning. For the six months ended 31 October, the company reported a 12.2% increase in group revenue to $7.1 billion and a 43% lift in underlying profit after tax to $129.6 million. This was driven by strong growth across all its segments during the half.

Nuix Ltd (ASX: NXL)

The Nuix share price has surged a further 14% higher to $9.10. Investors have been fighting to get hold of the investigative analytics and intelligence software provider’s shares since it listed on the Australian share market last week. The Nuix share price is now up over 71% since hitting the ASX boards at a listing price of $5.31.

Xero Limited (ASX: XRO)

The Xero share price has pushed 2.5% higher to $136.28. The catalyst for this has been a broker note out of Goldman Sachs this morning. According to the note, Goldman has initiated coverage on the cloud-based business and accounting software company’s shares with a buy rating and $157.00 price target. Goldman Sachs likes Xero due to the quality of its offering, its large and growing total addressable market (TAM), and its attractive unit economics.

More reading

• Metcash (ASX:MTS) share price jumps 8% after strong first half growth
• Why ASX iron ore stocks are set to rally today
• Leading broker puts buy rating on Xero (ASX:XRO) share price
• 5 things to watch on the ASX 200 on Monday
• How to get a passive income of $50,000 per year from ASX dividend shares

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 Xero. 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.

NVIDIA Corporation‘s (NASDAQ: NVDA) data center business was in the limelight recently as the company warned of a sequential slowdown in this segment after six consecutive quarters of growth. But investors need not be worried about its data center prospects, as the business has multiple catalysts, including a new opportunity that is worth paying close attention to.

The graphics specialist pointed out in its last earnings release that it introduced a new chip during the quarter: the BlueField-2 DPU (data processing unit). Let’s see why this chip could unlock a big revenue opportunity for NVIDIA and strengthen its hold over the data center market.

NVIDIA makes another move in data center accelerators

NVIDIA’s graphics cards have been accelerating data center workloads for quite some time now, outperforming traditional CPUs (central processing units) thanks to their massive computing power that helps quickly execute tasks at a fraction of the cost. The rapidly expanding data center accelerator market is estimated to be over $21 billion by 2023.

NVIDIA’s launch of a DPU in October gives it an opportunity to capture more of the market. DPUs are considered to be a new type of data center accelerators after CPUs, GPUs, and field-programmable gate arrays (FPGAs).

According to NVIDIA, DPUs are going to play a critical role in data centers by complementing the tasks performed by CPUs and GPUs. The chipmaker points out that while CPUs can perform general tasks and GPUs can accelerate heavy workloads in a data center, DPUs are responsible for the efficient transfer of data to other components, and also take care of workloads related to artificial intelligence, machine learning, and other applications.

In simpler words, NVIDIA aims to make data centers faster and more efficient with the BlueField-2 DPU. As it said when the product was launched. “A single BlueField-2 DPU can deliver the same data center services that could consume up to 125 CPU cores. This frees up valuable CPU cores to run a wide range of other enterprise applications.”

The DPU is a hot commodity already

It has been just two months since NVIDIA launched BlueField-2, and the chipmaker has already scored a big customer for the chip in VMware. The cloud computing player is deploying DPU-enabled smart network interface cards (SmartNICs) across millions of virtualized servers. What’s more, NVIDIA says that it is sampling the DPU with major hyperscale OEMs (original equipment manufacturers) as well as enterprise server manufacturers.

NVIDIA said in October that Red Hat, Canonical, and Check Point Software Technologies are either supporting BlueField-2 DPUs or integrating them into their offerings. Dell Technologies, Asus, Lenovo, and Fujitsu are some of the names that are expected to offer NVIDIA’s DPU with their enterprise servers.

As such, it won’t be surprising to see more data center infrastructure equipped with NVIDIA’s DPU come out in the future and help the company sustain the impressive momentum of this business. The data center business recorded 162% year-over-year growth last quarter and generated 40% of the total revenue.

The DPU market could help the data center business switch into a higher gear and help NVIDIA remain a hot growth stock.

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

More reading

• 10 most searched shares in Australia

Harsh Chauhan 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 NVIDIA. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends VMware. The Motley Fool Australia has recommended NVIDIA. 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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Westpac Banking Corp (ASX: WBC) has sold its Pacific operations to Kina Securities Ltd (ASX: KSL) for $420 million.

The Australian bank announced to the ASX before Monday’s opening that Westpac Fiji and Westpac’s 89.91% ownership in Westpac Bank PNG will be handed over to Kina Bank sometime before September.

The two arms are currently known together as Westpac Pacific. The business generated cash earnings of about $11 million for the bank’s 2020 financial year.

As of the end of September, Westpac Pacific had $580 million in net assets, $1.58 billion on its loan books, deposits of $2.34 billion and risk-weighted assets totalling $2.9 billion.

Westpac exiting non-core businesses

Westpac specialist businesses and group strategy chief Jason Yetton said the sale occurred from the company’s decision to focus on its core domestic operations.

“We are taking another step in becoming a simpler, stronger bank while ensuring a high standard of banking services is maintained for our Pacific customers.”

As part of the same strategy, Westpac last week sold Westpac General Insurance and Westpac General Insurance Services to Allianz for $725 million.

Yetton said Kina Bank is the right buyer for Westpac, its staff and the customer communities.

“We are pleased our Pacific businesses are being acquired by Kina Bank. Kina is a strong brand in the region and is well positioned with deep local knowledge to continue to help our consumer and business customers succeed.”

Westpac revealed $315 million would be payable at the completion of the transaction, which still has regulatory approvals to cross. Another $60 million will be paid afterwards in six-monthly instalments for Westpac PNG, plus up to $45 million in annual earn-out payments for Westpac Fiji.

“It is expected there will be an accounting loss on sale of approximately $230 million, including a foreign currency translation reserve (FCTR) loss which will be based on exchange rates on completion,” announced Westpac.

Kina Bank is a Papua New Guinean financial services company that is listed on the ASX, with a market capitalisation of $235.8 million, and on the Port Moresby Stock Exchange.

Westpac’s announcement comes after a rough week in which it agreed to an enforceable undertaking with the Australian Prudential Regulation Authority (APRA) to improve its risk governance.

APRA found the bank had an “immature and reactive risk culture, unclear accountabilities, capability shortfalls and inadequate oversight”.

More reading

• 5 things to watch on the ASX 200 next week
• Here are the ASX bank shares rated as a buy today
• Westpac (ASX:WBC) share price lower on APRA enforceable undertaking news
• ASX 200 flat on Wednesday
• ASX 200 down 0.2%: Zip’s November update, Mesoblast jumps, Westpac’s asset sale

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.

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The MedAdvisor Ltd (ASX: MDR) share price has been a positive performer on Monday morning.

At the time of writing, the medication management platform provider’s shares are up 2.5% to 40 cents.

Why is the MedAdvisor share price pushing higher?

Investors have been buying the company’s shares this morning after the release of a trading update.

According to the release, MedAdvisor’s US subsidiary, Adheris, has been performing better than it anticipated since being acquired on 17 November.

In light of this, the company is expecting Adheris’ revenue to be higher than the guidance it previously provided.

For the period 1 July to the end of November, Adheris achieved revenue of US$14 million. This compares to half year revenue guidance of US$13.8 million.

This appears to have been driven partly by the signing of a one-year deal with a major US biopharmaceutical company at the end of last month. The unnamed US$70 billion biotech giant is leveraging its data and analytics platform to target patient awareness and adherence across the Adheris network.

FY 2021 guidance upgrade.

Pleasingly, management expects this outperformance to continue in the second half and has lifted its full year Adheris guidance.

For the 12 months, the company was forecasting Adheris to deliver revenue of US$26.4 million. It now expects this to be 7.5% higher at US$28.4 million. Management advised that this represents 12.2% growth year on year.

MedAdvisor’s CEO and Managing Director, Robert Read, commented: “We’re pleased to confirm that trading for the half-to-date for our newly-acquired Adheris subsidiary has exceeded $14m USD with one month of trading to go.”

“Our investment thesis and diligence had sought to confirm that the Adheris business was delivering growth which could be accelerated with MedAdvisor’s technology across the substantial scale the business had built over the last 25 years. We are pleased to see the core business improve its growth trajectory and look forward to investing in growth initiatives that will accelerate this even further,” he concluded.

More reading

• MedAdvisor (ASX:MDR) share price shoots up 8% today. Here’s why.
• 2 ASX small cap healthcare shares growing quickly
• Why Afterpay, Goodman, MedAdvisor, & PointsBet shares are dropping lower
• Why the MedAdvisor (ASX:MDR) share price jumped 9% 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 MedAdvisor. The Motley Fool Australia has recommended MedAdvisor. 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 Event Hospitality and Entertainment Ltd (ASX: EVT) share price has dropped 4.68% in early trade, after the company announced the sale of its German cinemas business Cinestar may not go through. This, because the sale may miss the 14 December deadline imposed by the German regulator.

At the time of writing, the Event Hospitality share price is trading down at $10.39.

Why the deal may miss the deadline

Event Hospital is in the process of selling its German cinema business to Vue International. However, the sale is subject to German Federal Cartel Office (FCO) approval, which requires Vue International to divest six of the sites.

In October, Event Hospital said that Vue has managed to divest one of the six sites, with a final deadline of 13 November to divest the remaining five sites. That deadline imposed by the FCO has since been extended to 14 December.

In today’s announcement, Event Hospitality advised the divestment process for the remaining five sites was well advanced with a shortlist of three buyers. All three have received in-principle approval from the FCO subject to final review of the transaction documents.

However, Vue International has now sought to renegotiate the terms of the Cinestar sale and put a pause on the divestment. 

Event Hospitality said discussions were ongoing, but Vue’s most recent proposal made it clear there was a material risk that Vue would not complete the divestment by the FCO’s December deadline.

Should the divestment not occur in that time, the Cinestar sale will be prohibited by the FCO.

More about Event Hospitality

Event Hospitality operates hotels, resorts and cinemas, with operations in Australia, New Zealand and Germany dating back to 1910. It has been listed on the ASX since 1962.

Its cinema brands include Event Cinemas, Birch, Carroll and Coyle, Greater Union, GU Film House, Moonlight Cinema, Sydney State Theatre, and of course Cinestar.

In the its full year results to 30 June 2020, Event Hospitality had revenue of $410.64 million, a decline of 24.1% compared to the prior year.  The company reported a loss of $11.37 million for FY20.

About the Event Hospitality share price

The Event Hospitality share price has almost doubled its 52-week low of $5.44. However, it has fallen more than 20% since the beginning of the year. Event Hospitality commands a market cap of $1.75 billion.

More reading

• Why the MedAdvisor (ASX:MDR) share price is pushing higher today
• Why the SelfWealth (ASX:SWF) share price is rising 5% today
• Here’s why the Crown (ASX:CWN) share price is pushing higher today
• How I’d replace my entire wage with a passive income from dividend shares
• Why the Mesoblast (ASX:MSB) share price is charging higher today

Motley Fool contributor Eddy Sunarto 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 SelfWealth Ltd (ASX: SWF) share price is on the rise today. This comes after the company announced that United States (US) trading for SelfWealth retail clients will be launching on 14 December 2020. At the time of writing, the SelfWealth share price is up 5.36% to 59 cents.

What’s driving the SelfWealth share price higher?

The SelfWealth share price is marching higher following an expanded offering to its retail customers.

According to the release, SelfWealth advised that, from today, its 65,000 active members will have the option to submit a request to have the US trading feature added to their portfolios. For any new clients joining SelfWealth after 14 December, a selection for the trading feature will be available during the sign-up process.

The US feature will include a cash account, which will use FX rates when transferring funds across international accounts. The company said that over 7,500 US securities can be accessed between the major exchanges, with a flat-fee brokerage of US$9.50 per trade.

No fees will be charged with the opening of the new trading feature.

To assist in the smooth transition, SelfWealth has integrated the new addition with its ASX trading platform. Furthermore, new mobile applications for iOS and Android are expected to be released later this month.

SelfWealth stated that it anticipates a strong uptake of the new feature from its existing customer base and acquisition rates.

Management commentary

SelfWealth managing director, Mr Rob Edgley, commented on the new offering, saying:

For years, SelfWealth has been growing strongly off the back of disillusioned investors that have been overpaying to invest. Now, they can invest in the US and the ASX in one convenient place at a reasonable price. There’s now no need for multiple trading accounts and apps to access some of the most popular stock markets, and SelfWealth members will have a US Cash Account to help them avoid foreign exchange fees on every trade.

Our hard-working team will now turn their efforts towards providing additional functionality and new products across the trading platform. We’re looking forward to announcing these additions in the new year.

SelfWealth share price summary

The SelfWealth share price has been climbing higher since the start of April, gaining over 440%. The company hit a 52-week low of 9.5 cents in March and reached an all-time high of 82 cents in September.

Although the SelfWealth share price has settled back to 59 cents, the company has been making tailwinds this year. Its active trader base has increased by 35% from FY20 numbers, to 65,000.

More reading

• Here’s why the Crown (ASX:CWN) share price is pushing higher today
• How I’d replace my entire wage with a passive income from dividend shares
• Why the Mesoblast (ASX:MSB) share price is charging higher today
• How do zero-fee share trading apps make money?
• Metcash (ASX:MTS) share price jumps 8% after strong first half growth

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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