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The Zip Co Ltd (ASX: Z1P) share price is edging higher this morning following the release of an update on its performance in November.

At the time of writing, the buy now pay later provider’s shares are up 0.5% to $6.06.

How did Zip perform in November?

Zip’s update reveals that it continues to deliver record results across all regions.

This led to the company recording record transaction value of $577.1 million in November, up 44% on October and more than 100% year on year. Based on this, Zip’s transaction value is now annualising at almost $7 billion.

This strong growth was driven by a 157% increase in monthly transaction numbers and a 104% year on year increase in customer numbers to 5.3 million. A total of 464,000 customers were added during November.

No details were provided in respect to Zip’s bad debts or arrears.

How is it performing in different regions?

The company’s US business was arguably the star of the show in November.

It reported a 12% month on month increase in customer numbers to 2.8 million and a 65% month on month lift in transaction volume to $264.2 million.

In the ANZ region, Zip reported a 9% month on month lift in customer numbers to 2.5 million and a 30% month on month increase in transaction volume to $312.9 million.

Both regions delivered 50% increases in transactions during November in comparison to October.

“Extremely pleased.”

Managing Director and CEO, Larry Diamond, said: “We are extremely pleased with the BFCM [Black Friday – Cyber Monday] results and more broadly the entire month of November. Through our deep merchant relationships, we were able to secure a number of unique deals & offers which were delivered to our highly engaged customer base.”

“We saw a continued shift to online with strong buying in consumer electronics, appliances, gaming, gifts and apparel categories. Zip finished FY20 on $3.2bn in transaction volume (on a pro forma basis) and already by November, we are run-rating at approximately $7bn.”

“November was clearly a stand-out month for the Company processing over $570m, and are seeing continued momentum as we close out the calendar year. Zip is well on its way to becoming the first payment choice everywhere and every day,” he concluded.

More reading

• Flight Centre and Mesoblast were among the most traded shares on the ASX last week
• ASX 200 drops 0.5%: Treasury Wine sinks, Zip flat after AGM update, Bega Cheese rises
• Zip (ASX:Z1P) share price climbs higher following AGM update
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 next week

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The West African Resources Ltd (ASX: WAF) share price is surging almost 8% higher this morning after the company announced high grades and extensive visible gold have been intercepted in the deep diamond drilling at its Sanbrado Gold Project in Burkina Faso. At the time of writing, the West African Resources share price is trading at 99 cents, having closed at 92 cents in yesterday’s session.

Details of the gold find

The gold miner says that the deep diamond drilling beneath reserves at its M1 South site has returned high grade results including:

• 6 million ounces at an average grade of 20.5 g/t gold from 1211.5 metres, including 0.5 million at 167 g/t gold
• 6.5 million ounces at an average of 16.1 g/t gold from 1230 metres, including 0.5 million at 124 g/t gold

West African says the intercepts were all made greater than 900 metres below surface, and more than 400 metres beneath current probable ore reserves. This find has strengthened the potential to extend the M1 South underground mine life.

Reporting to be postponed to first-quarter

Commenting on the find, West African executive chairman, Richard Hyde, says that the company’s reporting will be delayed to include the latest find. He said:

The new results are along strike from TAN20-DD235 which returned 7m at 20 g/t gold in Q3 this year. Two drill holes are in progress at 330 metres and 980 metres respectively, and need to be completed and assayed before resources can be updated for M1 South.

Reporting of resources, reserves and the life of mine production profile for Sanbrado originally scheduled for release in Q4 2020, will now be released in Q1 2021 to allow the current drilling program to be completed and any further results to be included.

How did the West African Resources share price perform in 2020

The mining company has poured 45,400 ounces of gold in the three months to the end of September from its flagship Sanbrado project – a 40% increase over the prior quarter. 

Earlier this month, West African also announced it has repaid $35 million of its $245 million debt facility to Taurus Funds Management in order to save on interest costs.

The West African Resources share price has increased by more than 120% this year, driven by results from the Sanbrado drilling. The share price reached its 52-week high of $1.23 in October. 

West African currently commands a market capitalisation of around $813 million.

More reading

• 3 reasons why I’d buy high-yielding dividend shares today for passive income
• Meet the most unpopular ASX large cap stock according to analysts
• Mesoblast (ASX:MSB) share price jumps 19% on FDA update
• Why the Telix (ASX:TLX) share price is up 9% to a new record high today
• Spirit Technology (ASX:ST1) share price on watch after cyber security acquisition

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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High-yielding dividend shares could offer a generous passive income relative to other mainstream assets. Low interest rates mean that the returns on cash and bonds are low, while high house prices may limit yields on property.

Furthermore, high-yielding dividend shares may offer opportunities for income growth over the long run as the economy’s performance improves. Their high yields may also suggest that they offer good value for money after the 2020 stock market crash.

High-yielding dividend shares can offer a generous passive income

With interest rates currently at low levels, there are more limited opportunities to make a passive income than there have been in the past. Previously, many investors have relied on cash or bonds to provide an income. However, they currently offer very disappointing returns in many cases. In fact, it may prove difficult to obtain an income return that is above inflation from those asset classes.

Furthermore, relatively high house prices mean that the yields on property may be low. Alongside the risk of buying property directly, such as difficulties diversifying, and the large amount of capital it requires, buying high-yielding dividend shares for a passive income could be a more attractive opportunity.

Dividend growth opportunities

As well as a generous passive income today, high-yielding dividend shares could produce growth opportunities in the coming years. The economic outlook is currently challenging, which may mean that dividend growth is somewhat limited in the near term. However, over the long run, the prospects for the world economy could improve.

Fiscal and monetary policy stimulus in many of the world’s major economies could have a positive impact on the operating environment for many businesses. This may mean that they pay larger dividends to their shareholders, thereby increasing their income investing appeal relative to other mainstream assets. This could make them increasingly popular among a broader range of investors, and could contribute to capital appreciation over the coming years.

Low valuations may lead to high capital returns

High-yielding dividend shares could offer more than just a passive income. Their high yields suggest, in many cases, that they offer wide margins of safety. Investor sentiment has improved significantly since earlier this year. However, some stocks trade at low prices, which could mean that they offer recovery potential in the coming years as market conditions and investor confidence towards risky assets improves.

Certainly, there are risks ahead for high-yielding dividend shares. Brexit and the coronavirus pandemic may mean that investor sentiment is weak and share prices fall in the near term. However, with a lack of income opportunities available elsewhere and the stock market having a solid track record of recovering from even its very worst declines, the total returns on offer from dividend stocks could be relatively attractive over the long run.

More reading

• West African Resources (ASX:WAF) share price jumps 8% on gold strike
• Meet the most unpopular ASX large cap stock according to analysts
• Mesoblast (ASX:MSB) share price jumps 19% on FDA update
• Why the Telix (ASX:TLX) share price is up 9% to a new record high today
• Spirit Technology (ASX:ST1) share price on watch after cyber security acquisition

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Australia has the dubious honour of having the most unpopular listed stock exchange operator in the world in the eyes of analysts.

I am referring to the ASX Ltd (ASX: ASX) share price, which is lagging behind its peers.

But that hasn’t won it any friends among stock analysts, especially after its latest screw up that shut down the exchange two weeks ago.

Worst rated ASX stock on the ASX 200

Even with the underperforming ASX share price, stock analysts believe the stock is still too expensive, reported Bloomberg.

There are zero sell-side analyst willing to recommend the ASX as a “buy” and 11 “sell” ratings. This makes the stock the lowest ranked stock by consensus rating on the S&P/ASX 200 Index (Index:^AXJO)!

If that wasn’t embarrassing enough, Bloomberg also pointed out that the ASX share price is also ranked the lowest among global security and commodity exchanges.

ASX under pressure

ASX’s chief executive Dominic Stevens hasn’t had a good run as he investigates the second major outage under his four years stint at the helm

The ASX traced last month’s outage that shut the bourse for the entire day, save for the first 20-odd minutes of trade, to a software bug.

Stevens told the Australian Financial Review that heads will roll if he finds any executives responsible for the crippling oversight.

I wonder if Stevens is sweating after his counterpart at the Tokyo Stock Exchange resigned this week after a similar issue.

The humiliating screw-up could force the ASX to spend extra on infrastructure at a time when analysts are concerned about earnings growth and its sky-high valuation.

ASX share price lags international peers

To be sure, the ASX isn’t the only stock exchange that has suffered embarrassing glitches. Besides the Tokyo Stock Exchange, Bloomberg points out that the New Zealand Stock exchange went offline for four days following a cyber attack and that the Euronext and Mexican market operators suffered shutdowns in October.

The ASX share price is underperforming its peers though. The stock dipped 1.5% since the start of 2020.

In contrast, the Japan Exchange Group Inc (TYO: 8697) share price surged 39%, the NZX Ltd (NZE: NZX) share price rallied 35% and the Euronext NV (EPA: ENX) share price is up around 23%.

More room to fall

Even though the ASX share price has fallen behind, it’s the most expensive of its peers as it trades on a forward price-earnings multiple of 31 times.

The multiple is even richer than the 20.5 times that the ASX 200 is trading on.

The ASX share price is priced for perfection. Pity experts don’t feel the same way about its performance.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on Tuesday
• CBA (ASX:CBA) and the ASX banks just had an amazing month
• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
• Fund managers are snapping up these ASX stocks at a record pace

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mesoblast limited (ASX: MSB) share price has started the day strongly and is racing materially higher.

At the time of writing, the biotechnology company’s shares are up 12% to $4.62. But at one stage they were up as much as 19% to $4.90.

Why is the Mesoblast share price racing higher?

Investors have been buying the company’s shares this morning after the release of a positive announcement relating to its remestemcel-L product.

According to the release, the United States Food and Drug Administration (FDA) has granted Fast Track designation for remestemcel-L in the treatment of acute respiratory distress syndrome (ARDS) due to COVID-19 infection.

Fast Track designation is granted if a therapy demonstrates the potential to address unmet medical needs for a serious or life-threatening disease. Given that ARDS is the primary cause of death in patients with COVID-19, it wasn’t a surprise to see the FDA grant it this designation.

The company notes that the clinical data provided to the FDA included results from a pilot study of remestemcel-L under emergency compassionate use at New York’s Mt Sinai Hospital in March-April this year.

In this study, nine of 12 ventilator-dependent patients with moderate to severe COVID-19 ARDS were successfully discharged from hospital a median of 10 days after receiving two intravenous doses of remestemcel-L.

A larger phase 3 trial with up to 300 ventilator-dependent patients is ongoing and is approximately two-thirds enrolled.

Two interim analyses have been performed by the independent Data Safety Monitoring Board (DSMB), after 90 and 135 patients were enrolled. Following this analysis, the DSMB recommended that the trial continue as planned.

A third and final interim analysis is planned to be performed by the DSMB when 180 patients have completed 30 days of follow-up.

One company which appears optimistic on the treatment is Novartis. The two parties recently entered into a license and collaboration agreement for the development, manufacture, and commercialisation of remestemcel-L, with an initial focus on the treatment of ARDS, including COVID-19 ARDS.

The deal saw Novartis pay US$50 million up front and agree to pay upwards of US$1.25 billion in milestone payments depending on its success.

More reading

• Flight Centre and Mesoblast were among the most traded shares on the ASX last week
• 2 ASX 200 healthcare shares that outperformed in November 
• ASX 200 Weekly Wrap: ASX 200 on track for a top month
• These are the 10 most shorted shares on the ASX
• Top brokers name 3 ASX shares to sell next week

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Telix Pharmaceuticals Ltd (ASX: TLX) share price is racing higher again on Wednesday after the release of two positive announcements.

At the time of writing, the nuclear medicine-focused biopharmaceutical company’s shares are up 9% to $4.07.

This means the Telix share price is now up 166% year to date.

What did Telix announce?

The first announcement reveals that the US Food and Drug Administration (FDA) has approved the institutional use of Ga-PSMA-11 at the University of California, Los Angeles (UCLA) and the University of California, San Francisco (UCSF) under an academic New Drug Application (NDA) submission.

Management notes that this is a highly anticipated event within the US nuclear medicine industry. It paves the way for the FDA to approve commercially available products, enabling the broader availability of this technology to American men with prostate cancer.

Telix’s CEO, Dr. Christian Behrenbruch, commented: “We offer our congratulations to Drs. Hope, Czernin, and Calais at UCSF and UCLA for their success in achieving this limited institutional approval for 68Ga-PSMA. Their efforts pave the way for broader commercial dissemination of this important technology, and they have been fundamental to physician and regulator education of the importance of advanced prostate imaging techniques using nuclear medicine.”

What else was announced?

Telix also announced that it has been granted Human Research Ethics Committee (HREC) approval and received Clinical Trial Notification (CTN) clearance by the Therapeutic Goods Administration (TGA) to commence its first-in-human Phase I study of its next generation prostate cancer therapy product TLX592, in patients with advanced prostate cancer.

Like Telix’s existing TLX591 antibody development program, TLX592 targets prostate specific membrane antigen (PSMA), which management notes is a target that is almost ubiquitously expressed by prostate cancer cells.

TLX592 has been engineered to clear far more rapidly from a patient’s circulation, making it suitable for use as a targeting agent for actinium-225. Actinium is a potent therapeutic alpha emitting radionuclide and treatment.

According to the release, the Phase I “CUPID” study is a single centre, open-label trial that will evaluate the safety and tolerability, pharmacokinetics, biodistribution, and radiation dosimetry of TLX592 in patients with advanced prostate cancer.

Dr. Behrenbruch commented: “We are delighted to have been granted approval to commence the Phase I CUPID study for TLX592. Telix’s proprietary RADmAb technology fundamentally underpins our ability to develop new TAT treatments for patients with metastatic cancer.”

“In the case of TLX592, the clinical objective is to treat patients with prostate cancer that have a low disease burden for which alpha therapy is ideally suited, as well as potentially treating patients that no longer respond to conventional lutetium PSMA therapy. Telix has one of the broadest TAT pipelines in the industry and we are pleased to see our R&D efforts heading into the clinic,” he concluded.

More reading

• Why Afterpay, Bega Cheese, Humm, & Telix shares are storming higher
• Telix (ASX:TLX) share price storms 8% higher to record high on acquisition news
• Why these All Ords shares have almost doubled in value this month
• Why Brickworks, Mesoblast, Qantas, & Telix shares are storming higher
• Why the Telix (ASX:TLX) share price is surging 8%

Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Spirit Technology Solutions Ltd (ASX: ST1) share price has more than doubled this year following a series of acquisitions and the achievement of triple digit revenue growth. The Spirit share price will be one to watch today after the internet and IT provider delivered a market update and announced the acquisition of Intalock, one of Australia’s leading cyber security services businesses.

About Spirit 

Spirit has developed its own advanced, fixed wireless network which provides Australian small to medium-sized businesses (SMBs) with sky-speed internet, along with managed IT services and cloud-based business solutions. The company is rated as Australia’s fastest internet service provider with symmetrical internet speeds ranging from 25Mbps to a whopping 1Gbps. The company complements its strong organic growth with acquisitions, having made more than ten acquisitions in the last two years. 

Intalock cyber security acquisition 

Intalock provides a comprehensive cyber security offering with blue chip customer portfolios across corporate and government. The company generated revenue of $23.6 million and normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.3 million in FY20. Spirit is making an upfront consideration of $15.0 million as a combination of 85% cash and 15% equity with a deferred consideration component. An additional earn-out consideration is also available for out-performance in FY22 capped at a maximum total transaction value of $22.5 million. 

The acquisition will allow Spirit to cross sell and bundle its internet and IT services with cyber security services. Spirit will also leverage Intalock’s position in corporate markets as part of its market expansion strategy for FY21.

Cyber security a rapid growth market

According to Spirit, Australia’s revenue from cyber security could triple over the next decade and is forecast to reach $6 billion by 2026, at a compound annual growth rate of 10.6%. Spirit sees the current cyber security market as highly fragmented with disparate solutions. Over three-quarters of the market is dominated by foreign companies, mostly with local bases employing Australians. 

Record revenue in October and November

Spirit Group’s October revenue was $6.5 million, up 16% on September and 196% year-on-year from $2.2 million. The company experienced record sales and total contract value of $6.9 million in November, up 166% month-on-month and up 565% YoY, with pending installations at $2.8 million and IT services & technology sales of $12.1 million. Its growth was driven by large new business wins with cloud, voice and data products being sold in bundles across health, education and corporate segments. 

The Spirit share price has increased more than 95% in year-to-date trading.

More reading

• 2 reasons Amazon will keep taking ad sales from Google
• Laybuy (ASX:LBY) share price on watch after delivering strong growth in November
• 2 top ASX shares to buy according to WAM
• 2 ASX growth shares to buy in December
• Banks rejoice: House prices to return to 2019 levels

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SPIRIT TC FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

Amazon.com Inc (NASDAQ: AMZN) has quickly gone from $1 billion to $15 billion in ad sales over the last four years as it ramps up its advertising businesses. While it still pales in comparison to Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google, which brought in about 10 times as much ad revenue as Amazon in 2019, Amazon’s eating into the search giant’s share of search ad spending growth. That’s very likely to continue over the next few years as a couple of key factors impact search advertising.

The acceleration of e-commerce

COVID-19 has changed the way we do our shopping. More people are shopping for more things online instead of going into stores, accelerating the shift to e-commerce. And these changes seem fairly permanent, as the pandemic has brought in new customers and opened new retail verticals for online shopping.

With more shopping happening online, marketers are quickly following consumers. That’s good for both Google and Amazon. 

But considering the high purchase intent of Amazon searches, the influx of digital advertising in categories like consumer packaged goods or electronics heavily favors the retailer instead of the general search engine.

Amazon has been eating into Google’s share of product searches for years. And those searches are some of its most valuable. With Amazon seeing an influx of spending on its marketplace and growth in Prime memberships during the pandemic, investors should expect its share of product searches to have followed suit. And with more searches, there are more opportunities to sell ads.

The growth of Amazon’s advertising business has supported strong operating margin expansion and ought to continue to support Amazon’s bottom line as consumer packaged good ad spending keeps shifting online.

Google’s status as the default search engine on iPhone is in question

Google generates a lot of revenue from searches on Apple Inc‘s (NASDAQ: AAPL) iPhone. In fact, the company is willing to pay an estimated $12 billion per year just to be the default search engine in the Safari web browser across Apple devices.

But Google is under investigation of antitrust practices in its dealings with Apple. What’s more, Apple is reportedly developing its own search engine, which could compete with Google.

If Google’s forced to relinquish its hold on Safari’s default search engine in one way or another, it’s not like Google’s share of search traffic goes to zero on the iPhone. Google still has many popular services on the iPhone despite competing default services from Apple.

But the default Safari browser will only grow more important over time. The vast majority of search ad spending in the U.S. will go toward mobile devices. Mobile search ad spend in the U.S. is expected to grow by nearly $30 billion from 2020 to 2024, according to eMarketer. Desktop search ad spend will grow just $10 billion in the same period.

Google currently dominates mobile search, thanks in part to its partnership with Apple. If that relationship changes for any reason, it could put a damper on Google’s ability to take the majority of search ad growth on mobile as it has in the past.

It’s not all bad news for Google

It’s worth reiterating the accelerating shift to e-commerce will benefit Google at least some, even if it’s not as much as it benefits Amazon. Furthermore, Google and other digital advertisers will see benefits from accelerations in cord-cutting, leading to more marketers seeking digital advertising. In fact, eMarketer now expects search advertising to grow faster long-term than it forecast pre-pandemic.

Importantly, Google remains a primary option for digital advertisers thanks to its huge user base and differentiated ability to target advertisements and measure their effectiveness. Smaller competitors won’t be able to gain share from Google, merely leading to greater consolidation of a bigger market between the tech giants.

Google still has a lot of growth ahead, but it has a few hurdles in its way. Meanwhile, Amazon’s runway is clear for accelerating advertising revenue.

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

More reading

• Why is the Atomos (ASX:AMS) share price up 6% this morning?
• How the biggest companies are the worst investments
• 10 most searched shares in Australia
• Better buy: Alibaba vs. Amazon
• Down 17%, is Apple stock a buy?

Adam Levy owns shares of Alphabet (C shares), Amazon, and Apple. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and Apple and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Laybuy Holdings Ltd (ASX: LBY) share price will be one to watch this morning after the release of an update from the buy now pay later provider.

What did Laybuy announce?

This morning the Afterpay Ltd (ASX: APT) rival announced that it experienced stronger than expected growth throughout the month of November. This was driven by an increasing number of consumers making use of its payment platform.

According to the release, purchases made using Laybuy reached NZ$71 million in November, which represents an increase of 56% on October’s gross merchandise value (GMV).

This is also well ahead of the forecasts made with its half year results, which were released just over a week ago. At that point, management estimated that November’s GMV would be NZ$61 million.

Laybuy’s Managing Director, Gary Rohloff, commented: “The results Laybuy experienced in November is a continuation of the very strong GMV growth we have been experiencing throughout the year, with GMV up 220 percent year-on-year to 30 November 2020. While November is traditionally a strong retail month, with Black Friday and Cyber Monday signalling the start of the Christmas shopping period, the November results far exceeded our expectations.”

Laybuy reported a 19% increase in active merchants and a 14% in active customers over October and November. This means that in the past eight weeks, the company has seen 79,300 new customers sign-up and make use of Laybuy.

Growth across markets.

Pleasingly, strong growth was experienced in all three of the markets the company operates in. Though, management notes that the standout performer was the United Kingdom market.

Mr Rohloff explained: “Compared to October, purchases made using Laybuy in the month of November increased by 33 percent in both Australia and New Zealand, while sales surged by a staggering 79 percent in the United Kingdom.”

“The growth demonstrates the strong marketing strategy Laybuy is employing in the United Kingdom is having an impact – with recent sponsorship agreements with Manchester United and Manchester City and our partnership with Arsenal, for example, helping increase Laybuy’s brand recognition amongst those clubs millions of fans,” he added.

The managing director concluded: “At Laybuy we have a goal of creating a global brand and the rapid growth we are experiencing is positioning the company well to be the leading Buy Now, Pay Later provider in the market.”

More reading

• Laybuy (ASX:LBY) share price pushes higher following half year results
• Is buy now, pay later (BNPL) giving Aussies a headache?
• Laybuy (ASX:LBY) launches tap to pay digital card
• Why Laybuy, Oil Search, PointsBet, & Webjet shares are racing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

There’s also one called WAM Active Limited (ASX: WAX) which looks at businesses it thinks are the most undervalued.  

WAM says WAM Active invests in market mispricing opportunities in the Australian market.  

The WAM Active portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 11.7% per annum since inception in January 2008, which is superior to the Bloomberg AusBond Bank Bill Index return per annum of 3.1%.  

These are the two ASX shares that WAM outlined in its most recent monthly update:

Steadfast Group Ltd (ASX: SDF)

Steadfast has a market capitalisation of $3.4 billion according to the ASX.

WAM describes Steadfast as the largest general insurance broking company in Australasia.

The fund manager said that in October, the company increased its FY21 guidance, changing its underlying earnings before income, tax and amortisation from between $235 million to $245 million to a range of between $245 million to $255 million.

The ASX share also upgraded its underlying net profit after tax guidance to ;between $120 million and $127 million, with diluted earnings per share (EPS) growth of between 10% to 15%.

WAM said that Steadfast continues to benefit from the insurance premium market and is well placed to make acquisitions given its strong balance sheet.

At the current Steadfast share price, it has a trailing grossed-up dividend yield of 3.5%. Looking at Commsec, it’s valued at 21x FY23’s estimated earnings.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Nine has a market capitalisation of $4 billion according to the ASX.

WAM describes Nine as the largest locally owned media company. It owns and operates television, video on demand, print, digital and radio assets.

Some of its highest-profile assets include streaming service Stan, as well as the news outlets of the Australian Financial Review, the Sydney Morning Herald, the Brisbane Times and The Age. It owns the radio station 2GB. It also owns a significant stake of Domain Holdings Australia Ltd (ASX: DHG).

The investment team at Wilson Asset Management think that the ASX share will benefit from rising advertising expenditure in the lead up to the Christmas period, with consumer confidence improving after the announcement that lockdown restrictions would be relaxed in Victoria.

By FY24, Nine is trying to achieve a $230 million cost reduction (compared to FY19). The majority of this will come from programming, production and distribution cost reductions.

Nine is aiming for 60% of its earnings before interest, tax, depreciation and amortisation (EBITDA) to come from digital businesses, Nine wants more than 35% of its group revenue to come from subscription and around 30% of its revenue to come from video on demand.

According to Commsec numbers, the Nine Entertainment share price is valued at 16x FY23’s estimated earnings. It also offers a trailing grossed-up dividend yield of 4.25%.

More reading

• Wilson Asset Management (WAM) thinks these 2 ASX shares are a buy
• Why REA Group (ASX:REA) share price is trading lower after AGM
• Top fundie, Wilson, names ASX shares to buy
• 3 ASX shares rated as buys by brokers
• Why InvoCare, Nine, Telstra, & Wesfarmers shares are storming higher

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Steadfast Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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