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Yesterday I penned an article noting 3 reasons the S&P/ASX 200 Index (ASX: XJO) is likely to join US indexes to hit its own new record highs.

Although the ASX 200 slipped yesterday, and is down 0.5% in late morning trading today, that positive outlook certainly remains true.

However, while there are plenty of great performing shares on the ASX you should have in your portfolio, today I want to stress the importance of looking beyond the local markets. Specifically, to US markets.

Why you shouldn’t limit yourself to ASX shares

Let’s look at the relative performance of the Aussie and US markets first.

Over the past 12 months the ASX 200 is down 3.4%. Over 5 years it’s up 27.2%.

Over the past 12 months the S&P 500 Index (INDEXSP: .INX) is up 15.1%. Over 5 years it’s up 73.7%.

The tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) has performed even better. Over the past 12 months the Nasdaq is up 38.9%. Over 5 years it’s up 135.9%.

Have another look at those returns. A picture may paint a thousand words, but these figures speak for themselves.

Tremendous benefits

Scott Phillips, the Motley Fool’s chief investment officer in Australia, has had great success investing in ASX shares. But he’s also a strong proponent of investing internationally, particularly in US share markets.

Here’s an excerpt from an article he wrote for his investment service, Share Advisor, in April 2019:

Investing internationally delivers tremendous portfolio diversification benefits and brings a world of opportunities to your investment doorstep…

The fact of the matter is — some of the very best companies on planet Earth aren’t listed on the ASX. The Australian share market is a minnow on the global stage. Our share market represents a tiny 2% of global stock markets. If you exclude our two big miners and four large banks, that falls to almost 1%…

By investing part of your funds internationally you not only increase the opportunity to find the big winners of tomorrow, but you also reduce the risks that are specific to Australia. Risks that could seriously damage your portfolio.

Most online brokers these days offer you relatively inexpensive (and sometimes free) access to trading US shares.

You should be aware of the additional risks, though, chiefly currency fluctuations. If you invest in US shares and the Aussie dollar appreciates against the greenback, this will negatively impact your returns. Of course, if the Aussie dollar falls in value against the US dollar, it will boost those returns.

Why Bank of America and Blackrock are bullish on US shares

As the Australian Financial Review reports, Bank of America Corp (NYSE: BAC) is bullish for the outlook of US shares.

Noting that risks remain around the delivery of COVID vaccines and the potential for lengthier global lockdowns, the bank forecasts that a 5% increase in the S&P 500 from its Wednesday close is a conservative estimate:

[A] few themes support stocks: the S&P 500 dividend yield is three times the 10-year yield, and S&P 500 dividends are set to increase in 2021. And unlike bond yields, earnings are nominal and participate in inflationary upside – where inflation risks may be running higher, given rampant money-printing and a potential post-vaccine spike in demand…

Technology and Health Care offer neglect and growth at a reasonable price. We are underweight Staples, Real Estate and Comm. Services which represent past leadership, in our view, of bond-proxies and secular growth. We prefer small to large amid expectations for a strong US economic recovery.

BlackRock Investment Institute is also optimistic on the outlook for US shares, saying investors should look beyond the current volatility.

According to Mike Pyle, global chief investment strategist at BlackRock (quoted by Bloomberg):

We upgrade U.S. equities to overweight, expecting this market to benefit from both structural growth trends and a potential cyclical upswing during 2021. Positive vaccine news reinforces our outlook for an accelerated restart during 2021, reducing risks of permanent economic scarring.

BlackRock stated that apart from the mega-cap tech stocks, there are also semiconductor and software companies with strong growth trends that face few regulatory risks.

2 outperforming US shares with a ‘buy’ rating

We leave off today with a look at 2 outperforming shares Scott Phillips has previously recommended to the members of Share Advisor. Though they’ve posted strong gains since his recommendations, Scott maintains a ‘buy’ rating on both.

First up is Trade Desk Inc (NASDAQ: TTD). The company helps advertisers place programmatic ads across the web, on mobile, and in other places.

Scott recommended Trade Desk on 19 July 2019. His reasons to buy included the company’s innovative business model’s success at winning and keeping customers, its treasure trove of data to help clients, and its fast growing and scalable business.

Since Scott recommended it, the Trade Desk share price has rocketed 266.4% higher.

Today’s second outperforming US share is Match Group Inc (NASDAQ: MTCH). The company owns more than 40 separate online dating platforms including Tinder.

Scott recommended Match Group on 18 June 2020. His reasons to buy included the company’s impressive history of growth, the fact that Tinder continues to lead the way among dating apps, and that Match Group had plenty of room to grow profitability.

The Match Group share price is up 60.6% since 18 June.

At risk of being repetitive, when it comes to looking beyond ASX shares, these figures speak for themselves.

More reading

• Why fund manager optimism is at almost 3-year highs

Bernd Struben 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 The Trade Desk. The Motley Fool Australia has recommended The Trade Desk. 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.

The post Why investors should look beyond ASX shares for outsized gains appeared first on Motley Fool Australia.

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The Helloworld Travel Ltd (ASX: HLO) share price has come under pressure on the day of its annual general meeting.

In early afternoon trade, the travel booking company’s shares are down over 3.5% to $2.95.

Why is the Helloworld share price dropping lower?

Today’s decline appears to have less to do with its annual general meeting and more to do with a piece of COVID-19 vaccine news.

Fellow travel bookers Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) have also come under pressure today after concerns were raised with the data from the AstraZeneca COVID-19 vaccine candidate.

Last week, that data showed that when trial participants were given a half dose, followed by a full dose at least one month apart, the vaccine was 90% effective. Whereas, when given as two full doses at least one month apart, the vaccine showed just 62% efficacy.

Overnight, the UK-based pharmaceutical giant revealed that the more effective dosage was actually administered by accident and due to a manufacturing error.

It also came to light that the more effective dosage was given only to a lower risk group, which sparked fears that it may not be as effective against higher risk individuals.

In light of this, AstraZeneca looks set to have to undertake another clinical trial to prove its efficacy, which could push back its launch date.

What about the Helloworld AGM?

Given that Helloworld only recently released its first quarter update, there wasn’t much new information released with its presentation.

Management continues to expect FY 2021 to be a tough year and looks forward to a big improvement in the following financial years.

It commented: “The remainder of this financial year will continue to be challenging and we will continue to incur underlying EBITDA losses in the vicinity of $1.5-$2 million per month at least until the fourth quarter of FY21 however depending upon what other international bubbles may have opened up by then we’re hopeful that we would be close to a break even position by the last quarter of the current financial year.”

“Beyond that and looking forward into FY22, given the recent extraordinary success of the vaccine trials it is not unreasonable to assume the rest of the world will start to open up throughout the second half of 2021 and into the first half of 2022 and while we do not believe things will return to their previous levels in FY22 they will certainly continue to get better and better and we’re hopeful that FY23 will see a return to our previous TTV and revenue levels,” it added.

More reading

• ASX 200 down 0.35%: Bega Cheese jumps, Flight Centre & Webjet tumble lower
• CBA and Zip were among the most traded shares on the ASX last week
• Why the Webjet (ASX:WEB) share price is soaring 6%
• Why Origin, Qantas, Webjet, & Westpac shares are storming higher
• ASX stock winners from the $23 billion Victorian state budget

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Helloworld Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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.

The post Why the Helloworld (ASX:HLO) share price is sinking lower today appeared first on Motley Fool Australia.

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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a day in the red. The benchmark index is currently down 0.35% to 6,613 points.

Here’s what is happening on the market today:

Bega Cheese share price jumps.

The Bega Cheese Ltd (ASX: BGA) share price is jumping higher today after completing its institutional placement and the institutional component of its entitlement offer. Bega Cheese has raised approximately $284 million at a 9.1% discount of $4.60 per new share. The proceeds will be used to acquire Lion Dairy & Drinks for $534 million. This bolsters its portfolio with milk-based beverages such as Dare and Farmers Union, Yoplait yoghurts, Pura milk, and Juice Brothers juices.

Travel shares tumble.

A number of travel shares such as Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) are tumbling lower on Friday. This is after concerns were raised with the data from the AstraZeneca COVID-19 vaccine candidate. This follows news of a manufacturing error which led to half doses being given to a certain group. As this group is filled with under 55s and therefore lower risk, there are concerns that the vaccine may not be as effective for higher risk individuals. Another trial is expected to be undertaken to prove its efficacy.

Energy shares drop.

Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) have come under pressure today after oil prices pulled back. According to Bloomberg, overnight the WTI crude oil price dropped 1.6% to US$44.99 a barrel and the Brent crude oil price dropped 1.8% to US$47.73 a barrel. The S&P/ASX 200 Energy index is down 1.5% at the time of writing.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Friday has been the Bega Cheese share price with an 8% gain. Investors have responded positively to its plan to acquire Lion Dairy & Drinks for $534 million. The worst performer on the index has been the Webjet share price with a 4.5% decline due to the COVID vaccine news.

More reading

• Why the Helloworld (ASX:HLO) share price is sinking lower today
• This expert thinks the oil price could surge to US$196 a barrel in 2021
• Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition
• ASX 200 expected to drop lower amid COVID-19 vaccine concerns
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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.

The post ASX 200 down 0.35%: Bega Cheese jumps, Flight Centre & Webjet tumble lower appeared first on Motley Fool Australia.

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ASX oil-exposed stocks are the worst performing group on the market this morning, but this could change in 2021.

The energy sector tumbled 1.3% when the S&P/ASX 200 Index (Index:^AXJO) slipped 0.4% at the time of writing.

The Brent crude oil price tumbled 1.7% overnight to US$47.80 a barrel, while the WTI benchmark fell by a similar amount.

ASX energy stocks retreat as oil prices slide

A retreat in the commodity is triggering this bout of profit-taking on ASX energy stocks. The Oil Search Ltd (ASX: OSH) share price crashed 3.6% to $3.66 and the Beach Energy Ltd (ASX: BPT) share price lost 2.7% to $1.79.

This makes them the third and fourth worst performers, respectively, on the ASX 200 this morning.

But the Woodside Petroleum Limited (ASX: WPL) share price and Santos Ltd (ASX: STO) share prices aren’t too far behind. They’ve each lost more than 1% of their value.

Is the pullback in the oil price a buying opportunity?

These stocks have enjoyed a big bounce recently as speculation of the impending arrival of COVID‐19 vaccines fuelled optimism of an economic recovery.

But the pullback in ASX energy stocks could present a buying opportunity as Credit Suisse believes oil is heading higher.

The broker created a proprietary model that explains 86% of the Brent price variation since 1993 by looking at demand and supply drivers. This model is based on a range of factors like industrial production, ISM new orders index, world oil production and capacity utilisation, just to name a few.

Why oil can hit US$196 a barrel

Even under a more pessimistic scenario, the model is pointing to much higher oil prices. And under the best-case outcome, the Brent price could rocket to a new record high.

“If the Organization of the Petroleum Exporting Countries (OPEC) maintains agreed production cuts, the model points to an oil price of US$196 per barrel!” said Credit Suisse.

“If OPEC production returns to pre‐pandemic levels, fair value falls to US$80 per barrel.

“Even accounting for additional risks, such as inventory build, lack of storage space and political uncertainty, we can see oil prices returning to pre‐pandemic levels of US$60‐65 per barrel if world IP [industrial production] does not collapse or even recovers.”

Economic growth looking like a good bet for 2021

There’s little risk that industrial production will crash. If anything, experts are confident that economic activity will rebound in 2021 as it looks increasingly likely that a successful vaccine will be found.

The question is how quickly it can be made available to the general public. But as long as there’s a viable treatment for COVID, there will be enough business and consumer confidence to reflate the global economy, even if the vaccine takes a little longer to become available.

More reading

• ASX 200 expected to drop lower amid COVID-19 vaccine concerns
• 5 things to watch on the ASX 200 on Friday
• ASX 200 falls on Thursday
• ASX 200 flat: Bega Cheese announces major acquisition, WiseTech reaffirms guidance
• The real earnings growth driver for ASX bank stocks in FY21 isn’t what you think

Motley Fool contributor Brendon Lau 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 PointsBet Holdings Ltd (ASX: PBH) share price doubled in a single day after the announcement of its FY20 results and game-changing media partnership with NBCUniversal. But as the sports betting scene in the US continues to develop, why has the PointsBet share price gone nowhere since August? 

Time needed to digest run up?

Without further news, a company’s share price likely needs to take a breather after such a significant move up.

Zip Co Ltd (ASX: Z1P), for example, ran more than 60% in August after the announcement of its partnership with eBay and FY20 results. However, as the company emptied the clip of good news, its share price ran out of momentum to give up most of its August gains in the following months.

In the case of the PointsBet share price, not only did it jump 100% in a single day but it also announced a $353 million capital raising at an offer price of $6.50 per share a few days later. The significant move up combined with the share price dilution from the capital raising may have capped its ability to push higher. 

The recent rotation from tech and growth to value and cyclical sectors is possibly another force acting as a drag on the PointsBet share price. Leading S&P/ASX 200 Index (ASX: XJO) tech shares across the board including Afterpay Ltd (ASX: APT) have struggled to outperform the broader market in November. 

PointsBet timeline already announced 

PointsBet’s plans in the US have already been announced in its previous FY20 results. This includes its plans to launch in Colorado in November 2020 and Michigan in the third quarter of FY21. And also the launch of its iGaming product in Michigan in Q3 FY21 and New Jersey in the second half of FY21. 

The company announced its Colorado launch on 17 November. This represents its fifth online sportsbook operation in the US. The Colorado market represents an estimated revenue opportunity of $296 million by FY23. This compares to the FY23 revenue opportunity of $784 million in Illinois, $555 million in New Jersey, $317 million in Indiana and $159 million in Iowa. Pointsbet currently maintains a market share of 6.5% in New Jersey and 3.2% in Indiana as of the first quarter of FY21. 

More reading

• The 13 ASX shares that could have doubled your money in 2020
• Why Afterpay, Goodman, MedAdvisor, & PointsBet shares are dropping lower
• PointsBet (ASX:PBH) share price on watch after US update
• Why Laybuy, Oil Search, PointsBet, & Webjet shares are racing higher

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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.

The post Why has the PointsBet (ASX:PBH) share price gone nowhere since August? appeared first on Motley Fool Australia.

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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.

Biotech investing is not for the weak-hearted. While the clinical and regulatory success of a drug can mean huge gains, any failure in the development and commercialization process can literally decimate a biotech investor’s portfolio.

Many investors consider Moderna (NASDAQ: MRNA) to be one such risky biotechnology company, with fortunes largely dependent on the success or failure of its experimental COVID-19 vaccine, mRNA-1273. But although Moderna may be riskier than other prominent COVID-19 vaccine players such as Pfizer (NYSE: PFE) and AstraZeneca (NASDAQ: AZN), that doesn’t mean it’s purely a speculative play. mRNA-1273 is definitely the biggest short-term growth driver for the company — but Moderna also has much more to offer in the field of mRNA therapeutics.

Here are three reasons why healthcare investors can consider starting a small position in this high-growth stock on any pullback in 2020.

Its COVID-19 vaccine could be a game-changer

With traditional vaccines, a small and/or inactive amount of a virus or disease is injected to provoke the body into mounting an immune response to the proteins the intruder produces. mRNA vaccines are different, using messenger RNA — a molecule in cells that translates DNA into proteins — to fool the body into producing some of the virus’s proteins itself, then mounting the immune response. No mRNA vaccines have ever been approved for human use, but Pfizer and BioNTech (NASDAQ: BNTX) recently reported 95% overall efficacy for their mRNA-based COVID-19 vaccine candidate, BNT162b2, based on an ongoing phase 3 study. The companies did not report any serious safety concerns.

The positive news from these competitors bodes well for Moderna. The mRNA technology that is Moderna’s focus, and that Pfizer and BioNTech used to make their vaccine candidate, is not yet commercialized, so the latter’s success should boost confidence in Moderna’s approach.

Also, vaccine development is generally more time-consuming than drug development, requiring a wide array of safety studies to ensure that the vaccine does not cause serious adverse events in various populations. But to speed up the process, this protocol has not been followed for potential COVID-19 vaccines, meaning the safety of any vaccine development platform must now be assessed based on the totality of data available from all companies. Because of this, Pfizer and BioNTech’s positive safety data is good news for Moderna, too.   

On Nov. 16, Moderna reported efficacy of 94.5% for mRNA-1273 in a phase 3 study that involved more than 30,000 participants. This is important especially considering that many participants were from the populations most affected by the pandemic, including people over 65 years of age, people of color, and people with comorbidities such as diabetes, obesity, and cardiac diseases. Moderna has also not reported any severe side effects for its vaccine in the interim analysis; two-month safety follow-up data should be released at the end of November.

In the end, it may be logistics that prove to be the winning stroke for Moderna. mRNA-1273 can remain stable at -20 degrees Celsius (about -4 Fahrenheit)  for six months, at temperatures of 2 to 8 degrees Celsius (about 35 to 46 degrees Fahrenheit) for 30 days, and at room temperature for 12 hours. Hence, this vaccine can be easily distributed using existing transportation and storage infrastructure. Pfizer’s BNT162b2 vaccine candidate, however, has to be stored at -70 degrees Celsius (-94 degrees Fahrenheit), making it pretty difficult to transport and store even in developed countries.

mRNA therapeutics are a big opportunity

Moderna is a key player in the mRNA vaccines and therapeutics landscape, a global market expected to be worth $9.4 billion by the end of 2021.  Investors are showing increasing confidence in Moderna’s other clinical programs, such as vaccines for cytomegalovirus (CMV) and Zika, personalized cancer vaccines for solid tumors and melanoma, and other vaccines and treatments for a range of rare diseases.

In September, Moderna announced positive interim results for its CMV vaccine candidate, mRNA-1647. The company estimates the vaccine’s peak sales in the range of $2 billion to $5 billion per year , considering that CMV is the leading cause of birth defects in developed countries and there is no approved vaccine against this infection.

An increase in cash will boost R&D

Moderna plans to produce 20 million doses of the coronavirus vaccine by the end of 2020 in the U.S. and 500 million to 1 billion doses worldwide in 2021. The company plans to price mRNA-1273 in the range of $25 to $37 per dose, depending on purchase quantity. Moderna has already secured a $1.5 billion contract from the U.S. government to supply 100 million doses, with an option for an additional 400 million. The company has also received $1.1 billion in cash payments from governments around the world.

Moderna currently has cash and investments worth $4 billion and zero debt on its balance sheet. A significant sales ramp-up in 2021 will add to the company’s cash reserve, which in turn can fuel the research and development (R&D) pipeline.

There are risks to be considered

Moderna is trading at a forward price-to-earnings (P/E) multiple (calculated by dividing share price by forecasted earnings per share for the next fiscal year) of 22.4. Other far more diversified and less risky COVID-19 vaccine players — such as Pfizer, AstraZeneca, and Johnson & Johnson (NYSE: JNJ) — are trading at forward P/E multiples of 12.9, 21.9, and 16.3, respectively. Moderna is definitely a more expensive pick than any other coronavirus vaccine player.

Moderna’s share price depends heavily on the potential success of mRNA-1273. The company has not disclosed information about the time period for which the vaccine protects individuals after dosage and whether it prevents transmission from one person to another. Moderna also did not include children in its phase 3 trial, which may limit use of the vaccine in this population. Investors are concerned about the insider trading activity of some high-ranking Moderna executives, and excessive stock selling by insiders is a potent threat to the company’s share prices.

Despite all of these uncertainties, Moderna is essentially a play on the future of mRNA technology. Taking on a big position in this stock right now may prove risky. However, interested healthcare investors with above-average risk appetite can find enough reason to start a small holding in Moderna — especially on any pullback in stock price.

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

More reading

• With the Moderna (NASDAQ:MRNA) share price blasting up, have the forward-looking markets got it right?
• Here are the US shares that CommSec customers are buying
• ASX energy shares surge ahead as oil rises to 9-month high
• Why fund manager optimism is at almost 3-year highs
• Here’s why Moderna’s coronavirus vaccine could outsell Pfizer’s

Manali Bhade has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Johnson & Johnson. 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.

The post Why Moderna Is Less Risky Than You Think appeared first on Motley Fool Australia.

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

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The Thorn Group Ltd (ASX: TGA) share price has risen by more than 6% to 18.5 cents in morning trading, after the company reported an improved first half loss of $1 million, compared to a net loss of $24.6 million at the same time last year.

What else moved the Thorn Group share price

The company says it was able to improve its bottom line in the first half despite revenue falling by 44.9% from $104.9 million to $57.8 million.

Thorn says that it achieved more than $40 million of annualised cost savings during the half, and commenced a rapid transformation of the Radio Rentals business to a digital model. 

It also says that it meticulously managed the impact of COVID-19 on the Thorn Business Finance segment by repaying its $10 million corporate debt facility and focusing on maximising cashflow.

However, Thorn’s provisions for the impact of COVID-19 pandemic and the Radio Rentals’ store closure program have increased from $39.4 million to $50.9 million. These provisions comprise $13.6 million for the Radio Rentals business, and $37.3 million for the Business Finance Division.

The company announced that a special fully franked dividend of 7.5 cents per share was paid to shareholders after the end of the half, on 3 November 2020.

Thorn continues its previously announced position of not providing profit guidance.

What management said

Thorn Group chief executive Pete Lirantzis explained the transformations in the business, saying:

Over the last six months the new management team and board have executed major initiatives to set Thorn Group up for success, while navigating through the COVID pandemic.

Thorn is now on a path to growth with Radio Rentals transforming from bricks and mortar to digital. Radio Rentals will be expanding its product range to offer greater choice to customers, digitising and automating processes to improve customer experience and reduce costs, and enhancing customers’ end-to-end experience.

Meanwhile in Thorn Business Finance, we have a deeper understanding of the needs of our customers and are developing new value propositions, leveraging disruptive technologies, to target specific SME segments.

What does Thorn Group do

Thorn is a financial services company providing financial solutions to consumers and businesses. Thorn’s consumer leasing business, Radio Rentals, is a leader in the household goods leasing market, operating since 1937.

Thorn Business Finance is a provider of leasing and other financial services to small and medium enterprises. The company has been listed on the ASX since 2006

In July, the company announced the full closure of its Radio Rentals stores. The company had initially closed its stores temporarily due to the coronavirus pandemic, later deciding to close them permanently.

The Radio Rentals business will instead utilise a purely online model that will onboard customers digitally. 

About the Thorn Group share price

The Thorn Group share price has lost almost 20% of its value in 2020 due to difficult market conditions. The company had earlier reported an $81 million loss for its full year FY20. 

The Thorn Group share price listed in 2006 at a price of 72 cents. At its current price of 18.5 cents, it has a market value of $59 million.

More reading

• Why has the PointsBet (ASX:PBH) share price gone nowhere since August?
• Why Moderna Is Less Risky Than You Think
• Why the ikeGPS (ASX:IKE) share price is lifting today
• Why the Advance NanoTek (ASX:ANO) share price is storming 4% higher
• Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks 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.

The post Why did the Thorn Group (ASX:TGA) share price jump 6% this morning? appeared first on Motley Fool Australia.

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The Thorn Group Ltd (ASX: TGA) share price has risen by more than 6% to 18.5 cents in morning trading, after the company reported an improved first half loss of $1 million, compared to a net loss of $24.6 million at the same time last year.

What else moved the Thorn Group share price

The company says it was able to improve its bottom line in the first half despite revenue falling by 44.9% from $104.9 million to $57.8 million.

Thorn says that it achieved more than $40 million of annualised cost savings during the half, and commenced a rapid transformation of the Radio Rentals business to a digital model. 

It also says that it meticulously managed the impact of COVID-19 on the Thorn Business Finance segment by repaying its $10 million corporate debt facility and focusing on maximising cashflow.

However, Thorn’s provisions for the impact of COVID-19 pandemic and the Radio Rentals’ store closure program have increased from $39.4 million to $50.9 million. These provisions comprise $13.6 million for the Radio Rentals business, and $37.3 million for the Business Finance Division.

The company announced that a special fully franked dividend of 7.5 cents per share was paid to shareholders after the end of the half, on 3 November 2020.

Thorn continues its previously announced position of not providing profit guidance.

What management said

Thorn Group chief executive Pete Lirantzis explained the transformations in the business, saying:

Over the last six months the new management team and board have executed major initiatives to set Thorn Group up for success, while navigating through the COVID pandemic.

Thorn is now on a path to growth with Radio Rentals transforming from bricks and mortar to digital. Radio Rentals will be expanding its product range to offer greater choice to customers, digitising and automating processes to improve customer experience and reduce costs, and enhancing customers’ end-to-end experience.

Meanwhile in Thorn Business Finance, we have a deeper understanding of the needs of our customers and are developing new value propositions, leveraging disruptive technologies, to target specific SME segments.

What does Thorn Group do

Thorn is a financial services company providing financial solutions to consumers and businesses. Thorn’s consumer leasing business, Radio Rentals, is a leader in the household goods leasing market, operating since 1937.

Thorn Business Finance is a provider of leasing and other financial services to small and medium enterprises. The company has been listed on the ASX since 2006

In July, the company announced the full closure of its Radio Rentals stores. The company had initially closed its stores temporarily due to the coronavirus pandemic, later deciding to close them permanently.

The Radio Rentals business will instead utilise a purely online model that will onboard customers digitally. 

About the Thorn Group share price

The Thorn Group share price has lost almost 20% of its value in 2020 due to difficult market conditions. The company had earlier reported an $81 million loss for its full year FY20. 

The Thorn Group share price listed in 2006 at a price of 72 cents. At its current price of 18.5 cents, it has a market value of $59 million.

More reading

• Why the ikeGPS (ASX:IKE) share price is lifting today
• Why the Advance NanoTek (ASX:ANO) share price is storming 4% higher
• Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition
• Evolve (ASX:EVO) share price lifts after turning loss to profit
• What happened to the NextDC (ASX:NXT) share price in November?

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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The Ikegps Group Ltd (ASX: IKE) share price is up slightly today following the release of mixed half-year results for 2021. At the time of writing, the ikeGPS share price is trading at $1.13, up 0.89%.

Ike designs, markets and sells integrated GPS data capture devices, related software and consulting solutions. The group’s sales activities is divided into two segments: utility & communications, and new business. Key products include ikeGPS and Spike.

What’s driving the ikeGPS share price lower

For the period ending September 30, Ike reported revenue of $4.4 million, down 15% over the prior corresponding period (pcp). The company said despite the drop in revenue, this was a solid result during a Q1 period disrupted by COVID-19.

Ike noted that no customers or material pipeline contracts were lost, but rather network projects had been deferred.

Gross margin came to $2.9 million, around 67%, which was lower than the 72% attained over the first half of FY20. Fixed costs from Ike’s analysis segment were maintained, with the left-over capital used to improve operating efficiency going forward.

Operating expenses increased to $6.3 million compared to the $4.9 million spend on the comparable period. The additional splurge related to the company’s investment strategy focusing on growing the capability for its sales, solutions engineering, delivery and marketing teams. In-turn, this is expected to support its sales pipeline, customer onboarding and the overall customer experience for large infrastructure clients.

The group made an operating loss of $2.5 million for the first-half of the 2021 financial year. This compares to a $1.1 million loss in the pcp.

Ike recorded $21.9 million in cash and receivable at the end of September, with no debt.

Outlook for FY21

With focus now on the second-half of the year, Ike remains committed to delivering contracts on time. Furthermore, the company will also seek to push revenue opportunities through upselling its products to existing customers.

Ike revealed that significant tailwinds in the industry have the potential to flow through the company. It has predicted that more than $350 billion will be invested into fibre and 5G infrastructure during the next five years. This translates to more than 3,000 electric utilities needed for network build and maintenance.

About the IkeGPS share price

The IkeGPS share price has increased by almost 40% since the start of August. While the company has been positioning itself for future growth, its field data collection product and laser measurement tools are proving successful. Ike reached a 52-week high of $1.24 on Tuesday.

More reading

• Why the Advance NanoTek (ASX:ANO) share price is storming 4% higher
• Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition
• Evolve (ASX:EVO) share price lifts after turning loss to profit
• What happened to the NextDC (ASX:NXT) share price in November?
• Why the Viva Leisure (ASX:VVA) share price is in a trading halt

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. 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.

The post Why the ikeGPS (ASX:IKE) share price is lifting today appeared first on Motley Fool Australia.

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The Advance NanoTek Ltd (ASX: ANO) share price is pushing higher on Friday after the release of a sales update.

At the time of writing, the advanced materials company’s shares are up 4% to $4.80.

What did Advance NanoTek announce?

This morning the company revealed that it has experienced an improvement in sales in the US over the last few months.

This follows a difficult period where demand for sunscreen ingredients dropped off a cliff because of the pandemic.

According to the release, the company has been informed by its US distributor that over 50% of its original 180T stock holdings in XP powder has been sold in the past four months.

In addition to this, the distributor intends to start ordering new stocks of dispersions in December.

Things aren’t quite as positive in Europe, with new orders down materially compared to a year earlier. For the five months to 30 November, European new orders are down 55% on the prior corresponding period.

Management advised that this is a consequence of restrictions relating to the second and third waves in key markets on the continent.

What about the future?

The company is hoping to get a boost in the second half from manufacturing sunscreens on behalf of companies that lack the necessary equipment to manufacture sunscreens using its ZinClear XP powders and dispersions.

This follows its recent investment in its own manufacturing facility. However, this remains subject to TGA approval, which is expected in February or March.

Outlook.

Management continues to expect its profits to be down significantly in the first half, with only a small profit result being forecast.

However, it remains hopeful for a stronger second half as demand picks up.

It commented: “We are optimistic of a much improved profit result for the second half FY21. ANO already has stock in US and Europe to meet the anticipated increase in demand for products, with further shipments to continue throughout December.”

More reading

• Why the ikeGPS (ASX:IKE) share price is lifting today
• Bega Cheese (ASX:BGA) share price jumps 10% on Lion Dairy & Drinks acquisition
• Evolve (ASX:EVO) share price lifts after turning loss to profit
• What happened to the NextDC (ASX:NXT) share price in November?
• Why the Viva Leisure (ASX:VVA) share price is in a trading halt

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 Advance NanoTek Limited. 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.

The post Why the Advance NanoTek (ASX:ANO) share price is storming 4% higher appeared first on Motley Fool Australia.

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