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The S&P/ASX 200 Index (ASX: XJO) is currently on course to record another solid gain. In afternoon trade on Wednesday the benchmark index is up 0.6% to 6,539.3 points.

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

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat Leisure share price is up over 2% to $34.07. This follows the release of its FY 2020 results this morning. The gaming technology company reported a 5.9% decline in operating revenue to $4,139.1 million and a 31.8% reduction in earnings before interest, tax, depreciation and amortisation (EBITDA) to $1,089.4 million. While this was a sizeable decline, it was a touch ahead of expectations. Pleasingly, management also appears cautiously optimistic on its prospects in FY 2021.

Chalice Gold Mines Limited (ASX: CHN)

The Chalice Gold Mines share price has jumped 16% to $3.81. Investors have been buying the exploration company’s shares after it revealed further strong drilling results from its Julimar Nickel-Copper-Platinum Group Element (PGE) Project in Western Australia. Management advised that its discovery at the Gonneville Intrusion continues to grow on multiple fronts. It believes this is a sign that Julimar is emerging as a globally significant deposit of critical metals.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is up 2% to $19.37. This appears to have been driven by a couple of favourable broker notes. This morning analysts at Goldman Sachs declared Westpac a buy with a $20.34 price target. Whereas on Tuesday, Morgan Stanley upgraded its shares to an overweight rating with a $20.40 price target.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price has surged 6.5% higher to $1.36. This morning a broker note out of Goldman Sachs revealed that its analysts believe Chinese steel makers will begin buying Australian coal again in January/February. It notes that the China steel industry still requires high quality Australian met coals for blending in 2021.

More reading

• Morgan Stanley updates its share price targets for the big 4 banks
• ASX 200 up 0.35%: Aristocrat FY 2020 results, big four banks higher, a2 Milk update
• Why the Chalice Gold Mines (ASX:CHN) share price is rocketing 16% higher
• Here’s the ASX bank share rated as a conviction buy
• Aristocrat Leisure (ASX:ALL) share price in focus after FY 2020 results

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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 Aristocrat Leisure, Chalice Gold, Westpac, & Whitehaven Coal shares are charging higher appeared first on Motley Fool Australia.

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The Pact Group Holdings Ltd (ASX: PGH) share price is up by 1.55% to $2.62 per share today, after the packaging company outlined its FY20 results and gave a quick guidance for FY21 at its annual general meeting (AGM).

Financial highlights from the AGM

Pact Group says it delivered solid financial results in financial year 2020, considering the significant market disruption this year due to COVID-19. The company reported the following headline results for FY20:

• Revenue of $1.8 billion.

• Underlying net profit after tax (NPAT) of $81 million, up 5%.

• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $302 million, up 1% on a comparable basis.

• Free cash flow generation of $71 million, up 81% on comparable basis.

• A reduction in net debt of $70 million and an improvement in leverage to 2.6x.

• The resumption of dividends, with the payment of a final dividend of 3 cents, franked to 65%.

What else did Pact Group say

Pact Group reported it once again made the Australian Financial Review and Boss Magazine’s Most Innovative List for the eighth consecutive year, where it ranked second on the Manufacturing and Consumer Goods list, and was a joint winner in a new category of Best Pandemic Pivot. 

The company advised it has made progress in executing its new ‘Vision to Lead the Circular Economy’ strategy announced in February – a strategy that aims to align Pact’s capabilities with industry needs. Pact says that the plastic packaging industry is changing rapidly, and that plastic sustainability is not just an environmental need, it has now become an economic necessity.

It pointed to the Australian Government’s recent commitment of $600 million to the ‘circular economy’ through the ‘Recycling Modernisation’ initiative as putting the company in a good position to execute its strategy of having 30% recycled content by 2025.

Pact also gave a brief guidance for FY21. It says that earnings for FY21 have remained resilient so far, and sales volumes to the United States have increased in the first quarter. It expects earnings before interest and tax (EBIT) for the half-year to be ahead of the prior comparative period. However, the company says the impact of COVID-19 remains uncertain, and a further update on FY21 trading will be provided at the company’s half year results in February 2021.

A bit about Pact Group’s business

Pact Group is the largest rigid plastic packaging manufacturer in Australia and New Zealand, with a growing footprint in Asia following the acquisition of the CSI and Graham Packaging businesses in early 2018. After executing more than 50 acquisitions in the last few years, it has managed to gain 35% of the Australian rigid plastics market. Privately held company Visy has the other 35%, and ASX-listed Pro-Pac Packaging Limited (ASX: PPG) takes a much smaller pie. 

Management has said in the past that (aside from encroaching competition) its biggest risk lies in the price of resin – a raw material which accounts for 50% of Pact’s costs in manufacturing plastics. Although the company adjusts its customer pricing every 90 days, residual risk remains when resin prices become volatile, and the re-setting period is unable not keep up with the move in its prices. 

How has the Pact share price performed in 2020?

The Pact share price has traded relatively flat in 2020, having lost 1.5% on a year-to-date basis. It went through a rough period in March when the share price dropped as low as $1.27 during the pandemic-induced market panic. It has since recovered to today’s price of $2.62. The Pact Group commands a market cap of $888 million. 

More reading

• Morgan Stanley updates its share price targets for the big 4 banks
• Why Aristocrat Leisure, Chalice Gold, Westpac, & Whitehaven Coal shares are charging higher
• Why the Althea (ASX:AGH) share price is climbing higher today
• Why a2 Milk, ALS, Centuria Industrial, & Serko shares are dropping lower
• Former exec of ASX giant arrested over bribery scandal

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 Althea Group Holdings Ltd (ASX: AGH) share price is climbing higher today. This comes after the company released an update regarding its products being approved for sale and distribution in Germany. During market open, shares in the medicinal cannabis company hit an intra-day high of 50.5 cents. However, the Althea share price has fallen back a tad at 48 cents, up 2.13%.

What’s moving the Althea share price

The Althea share price is marching higher after the company reported that it has been granted all necessary licences for sale and distribution of its products in Germany.

The Federal Institute for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte) approved the permits.

Althea said this was a significant milestone, noting it would become the first commercial supplier of Australian-made medicinal cannabis extract products. With the licences now granted, the company will work with its distribution partner, Nimbus Health GmbH to advance the application for import and export permits.

Althea anticipates its first shipment of 2,000 units to Nimbus to take place in December. Payment for the products along with 50% of net profit of sales is expected to be received in due course.

Nimbus will adopt the same sales strategy that has been used on Althea’s products in Australia and the United Kingdom. Supporting the launch in Germany, in-field sales teams will be created alongside its famed Althea concierge platform.

What did management say?

Althea CEO Joshua Fegan welcomed the news, saying:

We are very pleased that all relevant licenses have been granted. This will now allow Althea to focus on the sale and distribution of our products in the German market through Nimbus. We expect to see rapid uptake given Althea’s reputation and Nimbus’ established market presence in Germany.

Nimbus founder and CEO Linus Maximilian Weber, added:

We are very pleased that Nimbus is the first distributor bringing Australian-made extracts to patients in Germany and will further increase the value of cannabis-based medicines in country.

Addressable market

Althea noted that the German market represented a significant opportunity for the company to invest in. The country has a population of 83 million and an estimated medicinal cannabis market of €1.5 billion (A$2.44 billion) by 2025.

Althea believes that its partnership with Nimbus puts it in a good position to become Germany’s leading medicinal cannabis brand.

Althea share price summary

The Althea share price has been staging a late-stage recovery for 2020. Shares in the company reached a 52-week high in September of 67 cents, before settling back in the 40-cent range.

More reading

• Why Althea, BWX, Damstra, & GrainCorp shares are charging higher
• Althea (ASX:AGH) share price on watch following 2 new agreements
• ASX stock of the day: Elixinol Global (ASX:EXL) shares blaze new highs
• Here’s why ASX cannabis shares are falling today
• How did ASX cannabis shares perform last quarter? 

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.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 0.55% to 6,534 points.

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

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price is down 3.5% to $14.19. Investors have been selling the infant formula and fresh milk company’s shares following the release of its annual general meeting update. A2 Milk continues to expect first half revenue of NZ$725 million to NZ$775 million and full year revenue of NZ$1.80 billion to NZ$1.90 billion. However, management has warned investors that a strong second half is needed to achieve its guidance. This will be dependent on an improvement in the daigou channel and continued growth in its China label business.

ALS Ltd (ASX: ALQ)

The ALS share price is down almost 3% to $9.51 following the release of its half year results. For the six months ended 30 September, the testing services company reported an 8.7% decline in revenue from continuing operations to $838.8 million. On the bottom line and on an underlying basis, the company’s net profit after tax from continuing operations was down 17.9% to $80.6 million. COVID-19 headwinds weighed heavily on its first half performance.

Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial REIT share price has fallen 2.5% to $3.07 after returning from its trading halt. The industrial property company’s shares were halted whilst it undertook a fully underwritten institutional placement. The company raised approximately $125 million at a price of $3.06 per new share. The proceeds will be used to partly fund the acquisition of three cold storage industrial facilities for $171.1 million.

Serko Ltd (ASX: SKO)

The Serko share price has dropped 2% to $5.16 following the release of its half year results. For the six months ended 30 September, the travel and expense technology solution provider reported a 66% decline in total operating revenue to NZ$5.1 million. This was driven by a 77% decline in travel booking volumes. Positively, Serko currently has a cash balance of NZ$90 million and believes it is well-placed for an anticipated travel market recovery.

More reading

• ASX 200 up 0.35%: Aristocrat FY 2020 results, big four banks higher, a2 Milk update
• Why the ALS (ASX:ALQ) share price sank 4% lower today
• Serko (ASX:SKO) share price drops lower after half year results
• a2 Milk (ASX:A2M) share price on watch after AGM update
• 5 things to watch on the ASX 200 on Wednesday

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 Serko Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Serko 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 a2 Milk, ALS, Centuria Industrial, & Serko shares are dropping lower appeared first on Motley Fool Australia.

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A former top-ranking executive for Cimic Group Ltd (ASX: CIM) was arrested Wednesday morning at his Brisbane home.

Russell Waugh is scheduled to appear in Brisbane Magistrates Court facing 2 charges of bribery-related offences, plus falsifying books and knowingly providing misleading information.

The 54-year-old’s arrest is the climax of a marathon 9-year investigation for the Australian Federal Police.

In November 2011, AFP received a report that Leighton Holdings’ (now known as CIMIC) overseas arm Leighton Offshore Pty Ltd allegedly made “improper payments” regarding Iraqi oil infrastructure contracts.

That triggered an enquiry that revealed a complex web of foreign entities designed to allegedly funnel bribes through.

At the time, Leighton was trying to secure approvals for two Iraqi contracts worth US$1.46 billion (AU$2 billion).

The AFP accuses Waugh of involvement in kickbacks that were designed to butter up government officials within the Iraqi Ministry of Oil and the South Oil Company of Iraq.

Operation Trig identified about US$77.6 million (AU$106.4 million) in “suspicious payments” made through third parties.

Arrest warrants are also out for 2 other former Leighton executives – David Savage and Peter Cox – who are both believed to be overseas. 

The Motley Fool has contacted CIMIC for comment.

CIMIC shares dropped from $23.63 to $23.40 when news broke of the arrest Wednesday morning. At the time of writing, the Cimic share price is trading slightly down at $23.29 cents.

Investigating overseas bribes is hard work

Foreign bribery investigations were complicated, according to AFP deputy commissioner Ian McCartney.

“Operation Trig investigators demonstrated outstanding resilience over the past nine years,” he said.

“They persevered through the painstaking process of piecing this jigsaw together from facts and allegations of alleged corruption that reached internationally, to a level that allowed us to bring this before the court in Australia.”

AFP worked closely with the United Kingdom’s Serious Fraud Office, the United States Department of Justice and Federal Bureau of Investigation during the operation.

Over the years, the investigation seized more than 2 million documents and nabbed evidence from 10 different countries.

More reading

• CIMIC (ASX:CIM) share price on watch after $800m Australian Defence contract win
• S&P places Cimic Group (ASX:CIM) on negative credit watch
• Why CIMIC, Megaport, Mesoblast, & Temple & Webster shares are dropping lower
• CSL (ASX:CSL) share price and 2 other ASX stocks among latest broker “buy” ideas
• ASX 200 rises 1%, Cimic (ASX:CIM) up 8% on 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. 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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We were expecting some big moves from the Tesla Inc (NASDAQ: TSLA) share price overnight (our time), and Elon Musk’s baby certainly did not disappoint.

The Tesla share price has risen by 8.21% to US$441.61 a share. Tesla closed at US$408.09 on Monday (US time), but opened at US$460.17 on Tuesday (up 12.8%) before sliding over the course of the trading day to US$441.61. On this price, Tesla shares are up 413% year to date.

So why were we expecting a big move from this electric vehicle and battery manufacturer?

Well, yesterday investors received the news that Tesla is finally set to join the S&P 500 Index on 21 December, after months of speculation.

Why is the S&P 500 so important?

The S&P 500 is one of the most tracked indexes in the world (if not the most tracked). It represents 500 of the largest public companies in the US.

But you might be wondering why Tesla isn’t already a part of the S&P 500 – especially given its market capitalisation is currently more than US$400 billion, and has been above US$300 billion for months now.

Well, in contrast to other indexes like the S&P/ASX 200 Index (ASX: XJO), entry to the S&P 500 is not based on market cap alone. According to our Fool colleagues in the US, entrants are required to be approved by a committee run by S&P Global Inc (NYSE: SPGI), the company behind the index (as well as the ASX 200). That’s why Tesla has been present in exchange-traded funds (ETFs) tracking non-S&P 500 indices, like the Vanguard US Total Markets Shares Index ETF (ASX: VTS), but not in S&P 500 ETFs like the iShares S&P 500 ETF (ASX: IVV).

Additionally, approval for S&P 500 entry is also subject to meeting certain criteria, such as a trading volume threshold and 4 consecutive quarters of profitability. Tesla achieved this last milestone back in July, and as a result was expected to be admitted into the S&P 500 back in September, which did not eventuate.

Why does index inclusion result in a higher Tesla share price?

If a stock is added to an index, it means that all ETFs, managed funds and other investment vehicles that track the index are compelled to buy it. And because the S&P 500 is one of the most-tracked indexes in the world, any new entrants will have an army of investors and funds clamouring to buy the stock.

What’s more, Tesla is a massive company, and will thus be commanding a large presence in the index from the start (unlike most new S&P 500 entrants that get slotted in at the back end). Assuming Tesla’s current share price, it looks as though it will be approximately the 11th stock in the index by market capitalisation and be given a weighting of roughly 1.19%. If a stock joined the index from the back end, it would be looking at a weighting of something like 0.01%.

That’s a lot of buying pressure that’s going to be flowing into the Tesla share price when the company is admitted into the index on 21 December. Last night’s share price appreciation is likely the result of some investors jumping the gun with excitement and anticipation.

More reading

• ASX 200 up 0.35%: Aristocrat FY 2020 results, big four banks higher, a2 Milk update
• Why the Downer (ASX:DOW) share price is outperforming today
• 5 things to watch on the ASX 200 on Wednesday
• Average Aussie needs 22 weeks to earn what Elon Musk does in 5 minutes
• Here are the US shares that CommSec customers are buying

Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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 Tesla (NASDAQ:TSLA) share price zooms 8% on S&P 500 news appeared first on Motley Fool Australia.

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US buy now, pay later (BNPL) giant Affirm plans to enter the Australian market, according to rumours reported by the Australian Financial Review. This comes as market leader Afterpay Ltd (ASX: APT) reveals strategies to return more value to merchants.  The Afterpay share price is already down by 6.68% since Monday after a report from the Australian Securities and Investments Commission (ASIC).

Affirm is a privately owned US BNPL company. Its CEO and co-founder is Max Levchin, who also co-founded Paypal Holdings Inc (NASDAQ: PYPL). At present, Affirm is the largest BNPL company in the United States by monthly active users. Where Afterpay leads in total US users, and Sezzle Inc (ASX: SZL) leads in total US merchants, the US giant operates a different business model with payments scheduled over longer terms. 

What’s weighing on the Afterpay share price?

The ASIC report highlighted a range of issues in the BNPL sector, focusing on consumer impacts. In particular, it pointed to the number of people missing payments. As well as those who are forced to cut back on essentials like meals to pay for BNPL purchases. 

Nonetheless, Afterpay was quick to respond, pointing out that consumers benefitted from more choice as competition expands. As opposed to a previously narrow, bank-dominated payments industry. The Australian market leader went on to laud its built-in consumer protections, juxtaposing it to other BNPL providers. This includes never selling or enforcing debt.

Afterpay also revealed some of its own research that reached different conclusions. For example, that there was no causal link between spending on Afterpay and changes in spending on essentials. Also, that there was no statistical relationship between merchant growth in Afterpay and how much their prices changed.

Swimming with sharks

Affirm is only the latest giant to enter the BNPL sector, and it comes at an interesting time given the sabre-rattling by ASIC. On 1 September, payments giant Paypal announced it would be entering the market. It boasts an 82% better conversion rate than other forms of payment and it already has 237 million shoppers globally. After zooming up the charts in previous months, the Afterpay share price has slowed since close of trading on 31 August, rising by just 3.5%.

Furthermore, Commonwealth Bank of Australia (ASX: CBA) has already entered the BNPL market locally via its partnership with Swedish private bank, Klarna. In addition, there have been a raft of recent IPOs, into an already crowded marketplace, by companies with new twists on the business model. For example, an interesting twist is the approach by unlisted BNPL challenger, Limepay. 

The Limepay technology allows companies to build their own BNPL capability. Thus preserving the relationship with customers, rather than having a third party sell them competitor products. 

Moves to defend the Afterpay share price

The threat to BNPL companies is to merchant margins. Particularly as new market entrants try to gain rapid merchant coverage. In order to counter this, Afterpay has announced several initiatives in its AGM designed to add value to merchant partners. For example, its Cross Border Trade also builds on our global expansion by enabling all merchants to open their e-commerce sites to Australian, British, Canadian and New Zealand shoppers.

Moreover, the company has also premiered the Next Gen index. An economic series focussing on consumer spending and the role of BNPL. This has highlighted that Gen Z and the millennials have been the first to increase spending during COVID-19. 

More reading

• ASX 200 up 0.35%: Aristocrat FY 2020 results, big four banks higher, a2 Milk update
• Is the Sezzle (ASX:SZL) share price a buy?
• Here are the US shares that CommSec customers are buying
• ASX 200 rises again on Tuesday
• Leading broker warns that US dollar could face bear market crash in 2021

Daryl Mather 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 PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings and Sezzle Inc. 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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Is the Pushpay Holdings Ltd (ASX: PPH) share price a buy after falling 22% in just three weeks?

Pushpay is an electronic donation business that facilitates digital giving, mainly for clients like large and medium US churches.

Why has the Pushpay share price fallen?

Pushpay saw its shares rise by 235% between 16 March 2020 and 28 October 2020. The company is involved in helping US churches remain connected with their congregations. Not only does Pushpay’s technology help churches receive donations in a socially distanced world, but it also provides livestreaming capabilities.

The Pushpay share price dropped after the US election and it has dropped 13% since the news of the 90% effectiveness of the BioNTech – Pfizer vaccine.

Indeed, many of the ASX tech shares focused on digital services have seen falls. Other examples include Temple & Webster Group Ltd (ASX: TPW) and Kogan.com Ltd (ASX: KGN).

The Motley Fool’s Pro service speculated that the market may not have appreciated the company saying that its strong cash and cashflow position may help consider other acquisition opportunities. Another reason for the selloff could have been because of board changes and share sales.

What growth has Pushpay been reporting recently?

Pushpay recently released its FY21 half-year result. It reported that its operating revenue increased by 53% to US$85.6 million. This was driven by total processing volume growth of 48% to US$3.2 billion. Pushpay said it expects continued revenue growth as it executes on its strategy, improves efficiencies and increases its market share.

It said that its gross profit margin rose from 65% to 68%. Not only that, but as a percentage of operative revenue, total operating expenses improved by 12 percentage points from 50% to 38%.

The combination of fast revenue growth and slower expense growth saw earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) rose by 177% to US$26.7 million. The EBITDAF margin increased by 14 percentage points, up from 17% at 30 September 2019 to 31% at 30 September 2020.

Pushpay’s net profit after tax (NPAT) grew by 107% to US$13.4 million and operating cash flow improved by 203% to US$27 million.

The ASX share recently increased its EBITDAF profit guidance to between US$54 million to US$58 million. This was an increase from guidance of US$50 million to US$54 million. The business is still aiming to reach US$1 billion of revenue in the future.

Is the Pushpay share price a buy?

Ben Griffiths from fund manager Eley Griffiths recently wrote:

“Over the last 12 months it has become clear PPH is at an inflection point for both cashflow and earnings. Under the stewardship of CEO Bruce Gordon, PPH has transitioned from a founder-led investment phase into an optimize/monetization phase. What is more surprising is the very conservative nature of the accounts (a rarity in small cap tech, outside Iress). We believe the next few years for PPH will be rewarding and that COVID-19 will accelerate the already entrenched trend to digital giving/engagement from cash.”

The Pro service still rates the Pushpay share price as a buy. Pro likes the cross-selling opportunity for new and existing customers. It also likes the US faith sector opportunity whilst also having the ability to expand to other markets such as non-faith organisations, as well as smaller churches. International growth could also be an option.

Pro finished its review of the HY21 result with these comments: “The management situation is something we need to keep an eye on, with more turnover at the executive and board level than we like to see. But the business itself appears to be firing on all cylinders and has further capacity to continue increasing its operating leverage.”

More reading

• These ASX shares have been unstoppable in FY 2021
• 2 fast-growing ASX tech shares to buy
• Top brokers name 3 ASX shares to buy today
• 2 fast-growth ASX tech shares that are being sold off
• Pushpay (ASX:PPH) investor day presentation: any updates to recover its share price?

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 8common Ltd (ASX: 8CO) share price is up this morning on the news that the Department of the Prime Minister and Cabinet (PMC) has extended a key contract for an additional year.

8common shares have pushed 3% higher to 16 cents at the time of writing. 

About 8common 

8common’s core product ‘expense8’ delivers travel and expense management (TEM), card application and management to large Australian enterprises including Woolworths Ltd (ASX: WOW), Broadcast Australia, Amcor Plc (ASX: AMC) and state and federal government agencies. 

Perform8 offers a suite of innovative online surveying solutions that are designed to assist business leaders at all levels to drive action and improvement in their teams. Perform8 is currently being used in 7 countries, globally. 

Payhero enables one-time and subscription customer billing to be managed in one place, helping business owners easily generate new revenue streams, spend less time chasing outstanding accounts and get paid faster with payment automation. 

Contract extension

The PMC contract extension represents the second one-year extension after a successful initial 3-year period and first one-year option period.

This extension includes new implementations for the National Drought and North Queensland Flood Response and Recovery Agency and the National Indigenous Australians Agency, which are serviced by PMC.

The contract is worth an estimated $236,000 in revenue, which brings 8common’s total FY21 contract wins to date to $1.1 million. 

8common CEO Andrew Bond commented:

The extension, along with the addition of six new Federal Government entities announced in August 2020 highlight the continued growth opportunities within the Federal government. We continue to see a strong pipeline of growth during the FY21 from our core Expense8 and the roll out of our CardHero product.

How has the 8common share price performed recently?

The 8common share price has more than doubled in recent months following a strong FY20 result, a 3-year agreement with EML Payments Ltd (ASX: EML) to issue prepaid Mastercards through its platform, and $2.25 million capital raising to fund its growth. 

More reading

• ASX 200 up 0.35%: Aristocrat FY 2020 results, big four banks higher, a2 Milk update
• Why the Downer (ASX:DOW) share price is outperforming today
• Why the United Malt (ASX:UMG) share price has lifted 4% higher today
• 3 reasons why I’d start preparing for the next stock market crash today
• Why did the Southern Cross (ASX:SXE) share price shoot up 7% this morning?

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. 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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At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has continued its positive run and pushed higher again. The benchmark index is currently up 0.35% to 6,522.5 points.

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

Aristocrat Leisure full year result.

The Aristocrat Leisure Limited (ASX: ALL) share price is pushing higher on Wednesday after the release of its FY 2020 results. The gaming technology company reported a 5.9% decline in operating revenue to $4,139.1 million and a 31.8% reduction in earnings before interest, tax, depreciation and amortisation (EBITDA) to $1,089.4 million. This was driven by headwinds from the COVID-19 pandemic. While no guidance has been given for the year ahead, management appears cautiously optimistic on its prospects.

A2 Milk Company AGM update.

The A2 Milk Company Ltd (ASX: A2M) share price has dropped lower today after the release of its annual general meeting update. The infant formula and fresh milk company has reaffirmed the guidance it provided in September. It continues to expect first half revenue of NZ$725 million to NZ$775 million and full year revenue of NZ$1.80 billion to NZ$1.90 billion. An EBITDA margin of ~31% is also expected. However, it has warned that its full year guidance is dependent on an improvement in the daigou channel and continued growth in its China label business.

Bank shares push higher.

The big four banks are all pushing higher today and are playing a key role in driving the ASX 200 higher. The best performer in the group has been the Commonwealth Bank of Australia (ASX: CBA) share price with a gain of almost 2%. Positive commentary on the housing market at the Australian Financial Review Banking & Wealth Summit appears to have given bank shares a lift.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Wednesday has been the Whitehaven Coal Ltd (ASX: WHC) share price with a 5.5% gain. This morning Goldman Sachs suggested that China will be buying Australian coal again in January/February. The worst performer has been the a2 Milk Company share price with a 3.5% decline following its AGM update.

More reading

• Why the Downer (ASX:DOW) share price is outperforming today
• Aristocrat Leisure (ASX:ALL) share price in focus after FY 2020 results
• a2 Milk (ASX:A2M) share price on watch after AGM update
• 5 things to watch on the ASX 200 on Wednesday
• Here are the US shares that CommSec customers are buying

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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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