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This morning Australia’s leading investment platform provider CommSec released data on the most traded ASX shares on its platform from last week.

Once again, there were a number of familiar faces filling up the top five over the period.

Here’s the data:

Flight Centre Travel Group Ltd (ASX: FLT)

Investors were buying and selling this travel agent’s shares in large numbers last week after Pfizer announced very positive results from its phase three COVID-19 vaccine trials. This made Flight Centre the most traded share on the CommSec platform and attributable for 2.6% of total trades. Surprisingly, just 54% of trades came from the buy side. Buyers will have been happy to see the Flight Centre share price record a 12% weekly gain last week.

Zip Co Ltd (ASX: Z1P)

This buy now pay later provider was popular with investors again last week. It accounted for 2.2% of trades on the CommSec platform. And although 63% of trades came from buyers, it couldn’t stop the Zip Co share price dropping 0.7% over the five days. Investors were selling COVID-winners last week and rotating into beaten down shares.

Afterpay Ltd (ASX: APT)

Fellow buy now pay later provider Afterpay was also popular with investors and accounted for 2.2% of trades on the platform. As with Zip, most of these trades came from buyers. Approximately 61% of trades came from the buy side and helped drive the Afterpay share price 1.3% higher for the week. This was a decent result given the selloff of COVID-winners following the COVID-19 vaccine news.

Webjet Limited (ASX: WEB)

This online travel agent was another travel share that was heavily traded last week due to the vaccine news. It contributed 1.9% of the total trades on the CommSec platform. And although the Webjet share price was on fire and surged 18% higher, the buying and selling was evenly split. Approximately 47% of trades came from buyers and 53% from sellers.

Qantas Airways Limited (ASX: QAN)

This airline operator was the third travel share to make the top five last week. It accounted for 1.7% of trades on CommSec over the period. As with Webjet, the Qantas share price surged materially higher following the COVID-19 vaccine news. However, just 51% of these trades came from the buy side.

More reading

• Is buy now, pay later (BNPL) giving Aussies a headache?
• Why Afterpay, Goodman, MedAdvisor, & PointsBet shares are dropping lower
• ASX 200 up 0.35%: Moderna vaccine success, Afterpay update, Westpac upgraded
• Afterpay (ASX:APT) share price lower despite leadership and AGM update
• Macquarie (ASX:MQG) picks best ASX stocks to buy for 2021 post-COVID recovery

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 owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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In this article are three ASX dividend shares that have large dividend yields and consistent payouts.

The Reserve Bank of Australia (RBA) recently cut the official interest rate to just 0.10%.

There are some businesses on the ASX that have yields much higher than that:

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi has a grossed-up dividend yield of 5.9% at the current JB Hi-Fi share price. It has grown its dividend each year since FY13.

In FY20 the company grew its final dividend by 76.5% to 90 cents per share, bringing the full year dividend to 189 cents per share – an increase of 33.1%.

The dividend growth was supported by the increase in sales and net profit. Total sales increased by 11.6% to $7.9 billion whilst underlying earnings per share (EPS) went up by 33.2%.

The ASX dividend share delivered much higher online sales due to the effects of COVID-19. JB Hi-Fi saw nearly $600 million of online sales, which was up 50% year on year. The fourth quarter saw online sales rise by 134%.

That revenue growth has continued in the first quarter of FY21 where JB Hi-Fi Australia sales rose by 27.3% and The Good Guys revenue grew by 30.9%.  Melbourne metro stores are now re-open.

Service Stream Limited (ASX: SSM)

Service Stream is a business involved in the design, construction, operations and maintenance of assets across Australian networks.

One of its biggest clients is the NBN. It recently extended its operations and maintenance master agreement with the NBN. This contract generated $330 million of revenue in FY20 and $280 million in FY19.

Service Stream maintained its dividend in FY20, and had been steadily growing its dividend for years before that. At the Service Stream share price it currently offers a grossed-up dividend yield of 5.9%.

The ASX dividend share’s management is working on diversifying its revenue away from telecommunications, expanding its client base, growing its exposure to a broad range of regulated essential infrastructure markets and building a base of long-term, capital light contractual agreements.

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT). It owns a variety of farm types including cattle, vineyards, cropping (sugar and cotton), macadamias and almonds. Rural Funds used to own poultry assets, but it recently sold those. 

It has a goal of steadily growing the distribution by 4% each year. This is supported by two pillars.

There is contracted rental growth built into all of Rural Funds’ tenancy agreements. That indexation is either a fixed 2.5%, or it’s linked to CPI inflation, with some having market reviews.

Rural Funds has also been working on investing in productivity improvements at its farms. The idea is that it will increase the value of the farm as well as unlock more rental income over time.

The ASX dividend share’s properties are spread across different states and climactic conditions. It doesn’t carry the operational risks like the agricultural tenant does, but it does own water entitlements which can be leased to the farmers for them to be used, if needed.

In FY21 the farmland REIT has provided distribution guidance growth of 4% to 11.28 cents per unit. At the current Rural Funds share price it has a forward distribution yield of 4.4%.

At the end of FY20 it had an adjusted net asset value (NAV) per unit of $1.94. The asset value is adjusted to include the market value of the water entitlements, rather than the (lower) cost price of the water entitlements. That means it’s currently valued at a 31.9% premium.

More reading

• These ASX dividend shares offer income investors attractive yields
• 2 ASX dividend shares with yields over 5% today
• 3 shares that have reacted adversely to vaccine news
• Best and worst ASX retail stocks to own in the COVID recovery
• 2 ASX dividend shares growing their dividend every year

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Service Stream 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.

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The buy now, pay later (BNPL) sector is probably one of the most dramatic success stories on the ASX over the past few years. You only have to go back a few years, and the whole BNPL idea was one of relative obscurity.

Sure, investors were starting to notice a small company called Afterpay Ltd (ASX: APT), but you’d probably be unlikely to find too many people predicting that BNPL was about to become a mainstream concept.

Fast forward to 2020 and it’s fairly obvious BNPL is here to stay. Not only has Afterpay spent the last few years making a bevvy of investors extremely wealthy (the Afterpay share price is up 200% in 2020 alone), but it has been joined by a small army of BNPL/payments/fintech competitors.

These include Zip Co Ltd (ASX: Z1P), Openpay Group Ltd (ASX: OPY), Sezzle Inc (ASX: SZL), Splitit Ltd (ASX: SPT) and (more recently) Laybuy Holdings Ltd (ASX: LBY). Following in Afterpay’s footsteps, all of these companies have given investors healthy gains over the past year or so.

Even Commonwealth Bank of Australia (ASX: CBA) – a relative dinosaur compared to the up-and-comers just listed – is getting on the BNPL train with its ‘Klarna’ product.

Is BNPL credit?

Now, BNPL hasn’t escaped its fair share of scrutiny. The sector was famously the subject of a parliamentary enquiry last year, which narrowly opted to not extend the same requirements as credit issuers to BNPL services. Although BNPL services do let customers spend ‘other people’s money’, its use doesn’t attract compounding interest like traditional credit products (such as credit cards and personal loans) do. That distinction had lead BNPL companies like Afterpay to argue that they are in fact, beneficial for customers who might otherwise use traditional forms of credit.

But reporting from the ABC yesterday pours some cold water on that notion. According to the report, the corporate watchdog ASIC (the Australian Securities and Investments Commission) has found that as many as 1 in 5 consumers are missing BNPL payments.

The report found that the number of BNPL transactions increased by 90% between FY2018 and FY2019 from 16.8 million to 32 million. However, that was accompanied by missing payment fee revenue climbing 38% to $43 million over the same period.

Young people swarm in

The ABC quotes the ASIC report as stating the following:

While working for the majority of users, some consumers are suffering harm… From our research, we also found that some consumers who use buy now, pay later arrangements are experiencing financial hardship, such as cutting back on or going without essentials – for example meals – or taking out additional loans, in order to make their buy now, pay later payments on time.

Of those BNPL customers who said they were cutting back, ASIC found that nearly half were under 30 years old: “Almost 70 per cent of those who had taken out another loan to make their buy now, pay later payments on time had also missed a payment, and half were under 30.”

Users under the age of 35 accounted for 61% of completed transactions in FY2019. For transactions that incurred missed payment fees, customers under 35 reportedly accounted for 67%.

Even after these findings though, ASIC has “stopped short” of recommending that the sector be regulated in the same way as credit card companies. BNPL lives to fight another day, it seems.

More reading

• Why Afterpay, Goodman, MedAdvisor, & PointsBet shares are dropping lower
• Why the Openpay (ASX:OPY) share price is up and down today
• ASX 200 up 0.35%: Moderna vaccine success, Afterpay update, Westpac upgraded
• Afterpay (ASX:APT) share price lower despite leadership and AGM update
• Macquarie (ASX:MQG) picks best ASX stocks to buy for 2021 post-COVID recovery

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended 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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The Origin Energy Ltd (ASX: ORG) share price is on the rise today after the company announced plans to conduct feasibility studies into the potential of exporting “green” hydrogen and ammonia. Australia’s third biggest energy company by market capitalisation says that it will look into Tasmania’s Bell Bay Area as the most likely plant location for this project. At the time of writing, the Origin share price is up by 3.4% in today’s trading to $4.92 per share.

What’s moving the Origin share price?

The Origin share price is responding positively to news the company is about to carry out a $3.2 million feasibility study, partly funded by the Tasmanian Government. The study will look into the use of large-scale renewable energy to convert water into hydrogen through a process known as electrolysis. Origin says the hydrogen generated would have a capacity of more than 500 megawatts, and would then be combined with nitrogen to create green ammonia for shipping to export markets.

This pivot to green exports is being considered despite the company owning a 37.5% stake in Australia Pacific LNG (APLNG), a major LNG exporter in Queensland that exports 8.6 million metric tonnes per year to Asian customers.

Origin said in a statement that “hydrogen produced from renewable energy has tremendous potential to support decarbonisation in Australia and overseas, because it is one of the most abundant elements in the universe and can be produced with zero emissions.” It has put the expected output of zero-emissions ammonia from this project at more than 420,000 tonnes a year.

Australia’s green energy landscape

The announcement by Origin coincided with a report by the Grattan Institute Think-Tank. The report recommended the Australian Government start planning for a future without gas, because gas prices would not return to the cheap levels of the past, and because of the global commitment to reach net-zero emissions by 2050. 

This recommendation, however, has been dismissed by industrial energy users, saying that lack of access to affordable gas would have a negative impact on manufacturing jobs. The Morrison Government has also said that it remains committed to the role of gas in Australia, saying that future supplies from the United States will drive LNG prices down, making it affordable for Australian households and manufacturers. 

How has Origin performed in 2020?

In October, Origin announced that its FY21 first-quarter revenue from its stake in the APLNG project fell 46%. This was as a result of lower oil and gas prices due to the ongoing pandemic. To add salt to the wound, a group of 10 investment banks in the US polled by The Wall Street Journal forecast that Brent crude oil price will only average $53.50 per barrel by the end of 2021 – far below its pre-COVID levels.

The Origin share price has fallen by more than 40% this year as the coronavirus took a toll on its export business. As mentioned, the Origin share price is trading at $4.92 today, up by 3.4% amid the broader rise in the energy sector as new developments in a possible vaccine were announced over night. At this price level, Origin commands a market cap of $8.67 billion.

More reading

• ASX 200 has explosive start to trading ahead of RBA decision
• Origin Energy (ASX:ORG) share price is 50% down in 2020. Where to next?

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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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.

In a move investors have long anticipated, S&P Global — the body that manages some of the most prominent stock indices in the U.S. — announced on Monday that Tesla (NASDAQ: TSLA) will be joining the S&P 500 Index before trading commences on Monday, Dec. 21. Tesla stock jumped on the news and is currently up more than 14% in after-hours trading.  

The electric-vehicle maker was widely expected to make the cut in early September during the index’s quarterly rebalancing, but it failed to make the list at that time.

Tesla stock has skyrocketed so far in 2020, gaining 388% as of the market close on Monday, pushing its market cap to nearly $387 billion. Because of the size of the addition, officials have yet to decide whether Tesla will be added all at once on the effective date, or if it will be divided into two separate tranches to be completed by the Dec. 21 deadline. S&P Global has taken the unusual step of eliciting investor feedback before making the decision.

Being included in the index not only confers bragging rights but could also help push shares higher, as mutual funds, exchange-traded funds, and others that track the S&P 500 will be adding the stock to their portfolios. This increase in demand is likely to provide a temporary boost for Tesla shares.

In mid-July, Tesla announced its fourth consecutive quarter of GAAP (generally accepted accounting principles) profitability, one of the last remaining hurdles the company needed to clear to be considered for inclusion in the index. However, Tesla was initially passed over, leaving some investors scratching their heads as to why.

Some Wall Street analysts have speculated that the stock’s well-known volatility may have factored into the previous decision to snub Tesla. Others have suggested that the sale of regulatory credits, and the part that played in the company’s profits, may have also weighed on the verdict.

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

More reading

• Here’s how ASX investors have reacted to a Biden win
• Tesla (NASDAQ:TSLA)’s ‘Teslaquila’ tequila sells out in hours
• Here are the US shares that CommSec customers are buying
• Aussies going crazy for electric car maker, but it’s not Tesla
• Don’t fall in love with a charismatic CEO, says fundie

Danny Vena 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.

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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 Auswide Bank Ltd (ASX: ABA) share price moved higher by as much as 1.7% in morning trade today. This move follows a positive presentation released today prior to the company’s AGM, which commenced at 11 am AEST. 

Auswide Bank shares have since settled to their current level of $5.82 per share, up 0.34%.

What does Auswide Bank do?

Auswide Bank was formerly known as Wide Bay Australia. Wide Bay might be a more familiar name for a lot of readers – the company has been in business for more than 50 years. As with any bank, the service range is vast. For Auswide Bank, this includes both personal and business products.

Formed in 1979 as “Wide Bay Capricorn Building Society”, the company has evolved over time and in 1994 listed on the ASX.

Today, Auswide Bank’s assets exceed $3 billion.

What were the highlights of the AGM presentation?

Today’s AGM presentation included a number of positives.

Net profit after tax (NPAT) was up by 7.6% (including the effects of COVID), rising from $17.201 million in FY19 to $18.504 million for FY20.

NPAT excluding the effects of COVID was much higher. Today’s CFO presentation highlighted that if the bank excluded the COVID impact, NPAT was actually up by 16.9%. This means that the FY20 result would be $20.114 million. 

The bank reported its net interest revenue is up 11.6%, which it attributed to strong and profitable loan book growth. This revenue stands at $70.516 million for FY20. Auswide’s loan book growth in relation to this same point is up by 4.3%.

Auswide reported its deposits are up by 10.4%. The physical result of this was $2.62 billion in FY20 compared to $2.373 billion in FY19. This means that deposits now account of 74.5% of funding for Auswide. In comparison, in FY19, deposits made up 71.4% of funding.

One thing that fell away during FY20 was the bank’s dividend. Total dividend per share for FY20 was 27.75 cents per share, down from 34.5 cents per share in FY19.

Strong FY21 results indicated

The company also announced strong financials for the start of FY21. 

Some early data (YTD October 2020 vs YTD October 2019) includes:

• NPAT up by 33.7%, from $5.569 million to $7.444 million
• Loan book up 7.9%, from $3.182 billion to $3.434 billion
• Net interest revenue up 11.7%, from $22.550 million to $25.194 million
• Deposits up 15.2%, from $2.442 billion to $2.815 billion.

Auswide share price summary

The Auswide Bank share price is trading slightly higher on this positive news today, but overall this year Auswide shares are more or less flat. However, the Auswide bank share price has seen a strong recovery since the COVID crash in March, rising from a low of $3.30 to its current price of $5.82, or around 77% in 9 months.

More reading

• Auswide Bank (ASX:ABA) share price surges 6% after strong update

Motley Fool contributor glennleese 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) has followed the lead of U.S. markets and is pushing higher. At the time of writing, the benchmark index is up 0.2% to 6,498.3 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 4% to $97.35. Investors have been selling the payments company’s shares despite the release of a positive update at its annual general meeting. That update revealed that October was another record month for underlying sales globally. Furthermore, it advised that month to date the company is tracking ahead of this and new customer growth has been accelerating since the end of Q1 in both the US and UK. An ASIC report into the BNPL industry may be overshadowing this news.

Goodman Group (ASX: GMG)

The Goodman share price is down over 4% to $18.65. This morning analysts at Goldman Sachs reiterated their sell rating and lowly $12.24 price target on the property company’s shares. While Goldman is expecting solid growth in the coming years, it still believes its shares are overvalued.

MedAdvisor Ltd (ASX: MDR)

The MedAdvisor share price has tumbled 8% to 39 cents. Earlier today the medication management platform provider announced the opening of its retail entitlement offer. That offer will see eligible shareholders able to subscribe for 1 new share for every 2.5 shares they own for an issue price of 38 cents per new share. The maximum raised under the offer will be just a touch under $18 million.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price has fallen 2.5% to $11.23. This is despite the sports betting company providing an update on its US operations. According to the release, the company has now launched in the State of Colorado and taken its first bet. Management is now focusing on its next launch, which is planned for Michigan in the third quarter of FY 2021. Michigan will also see the inaugural launch of PointsBet’s iGaming product.

More reading

• ASX 200 up 0.35%: Moderna vaccine success, Afterpay update, Westpac upgraded
• Afterpay (ASX:APT) share price lower despite leadership and AGM update
• Macquarie (ASX:MQG) picks best ASX stocks to buy for 2021 post-COVID recovery
• PointsBet (ASX:PBH) share price on watch after US update
• 5 things to watch on the ASX 200 on Tuesday

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MedAdvisor and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended MedAdvisor and 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.

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Yesterday, overnight Aussie time, the Dow Jones Industrial Average (INDEXDJX: .DJI) closed at a new all-time high of 29,950 points.

That’s within a whisker of the psychologically significant 30,000-point mark. And it’s 61% up from the 23 March lows.

While not setting new records, it’s the same story across the globe with every major share index closing well into the green. At the time of writing in our neck of the woods, my screens are also flashing green across Asia and Australia.

With trading back on after yesterday’s embarrassing shutdown, the S&P/ASX 200 Index (ASX: XJO) is up 0.4%. While that’s still 9% below the ASX 200’s all-time high set on 20 February, there are reasons to be optimistic that record could also soon be topped.

Not 1 but 2 vaccines

In the space of a week, our pandemic-battered world received news of not 1, but 2 highly promising coronavirus vaccines almost ready to be rolled out to the masses.

Last Tuesday, we awoke to the announcement from Pfizer Inc. (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) that their vaccine has proven 90% effective at preventing symptomatic coronavirus infections.

This morning, we learned of the even better results reported by Moderna Inc (NASDAQ: MRNA). According to its late-stage trial, Moderna’s vaccine is 94.5% effective at preventing infections.

Of course, that doesn’t mean we’re out of the woods yet.

Infection rates are still sky-high in the United States, Europe and much of the rest of the world. And I might add I’m writing from my home office in South Australia, where new cases have seen our state cut off from most of the rest of the nation.

But with 2 new vaccines casting their light at the end of this viral tunnel, share market investors have good reason to look through the shorter-term pain still ahead to the potentially outsized rewards on offer as Australia and the rest of the world reopen.

According to Seema Shah, chief strategist at Principal Global Investors (as quoted by Bloomberg):

Today’s vaccine news should make investors more tolerant of the surging virus cases, permitting them to look through to the strong dynamics that seem to be taking shape for 2021. Easy monetary policy, fiscal stimulus, recovering economic growth – there are many reasons for investors to be optimistic as we move closer to the end of this awful year.

Among those expressing renewed optimism for 2021 is Federal Reserve vice chair Richard Clarida. Clarida says his forecasts for 2021 had already included his belief in a vaccine, but over the past week he’s “got more conviction” (quoted by Bloomberg):

The news has been very good to have now two successful trials with above 90% efficacy… I’ve got more conviction in my baseline for next year and more conviction that the recovery from the pandemic shock in the U.S. can potentially be much more rapid than it was from the global financial crisis.

As we’ve witnessed in Australia, Clarida notes that government stimulus spending and employment support packages, along with low interest rates and people spending less money during lockdowns and social distancing, have seen US consumer savings rates reach near record levels.

Fiscal policy was so successful that this was the only downturn in my professional career in which disposable income actually went up in a deep recession, and a lot of that has been saved…

We will continue to monitor developments and assess how our ongoing asset purchases can best support achieving our maximum-employment and price-stability objectives.

According to Bloomberg, Morgan Stanley strategists are also bullish on the outlook for shares and credit in 2021, citing an expected V-shaped economic recovery, continuing support from governments, and increased clarity on the vaccine rollout. “This global recovery is sustainable, synchronous and supported by policy, following much of the ‘normal’ post-recession playbook. Keep the faith, trust the recovery.”

Years of progress in a matter of months

While the pandemic has caused economic hardship and the tragic loss of lives, it’s also forced societies to innovate at an accelerated pace.

Here in Australia, that’s seen our adoption of digital technologies go into overdrive.

Speaking at the CEDA annual dinner in Sydney, Reserve Bank governor Philip Lowe noted that (from the ABC):

In some areas, progress that otherwise would have taken years has been made in a matter of months. The combination of necessity, new technologies and the easing of regulations has made a real difference.

Digitalisation is not only helping Australians deal with the pandemic, but it will also boost productivity and can help drive future economic growth…

Reflecting this, online retail sales have increased by 80 per cent since the start of the year… This acceleration in the shift to a more digital economy is prompting firms to innovate and to find new ways of doing things.

One company that’s benefited from this rapid shift to a more digital economy is online retailer Kogan.com Ltd (ASX: KGN), which has certainly done its bit to help nudge the ASX 200 back towards new record highs.

Year-to-date Kogan’s share price is up 156%. And since the wider ASX 200 bottomed on 23 March, Kogan’s shares have gained 367%.

More reading

• Why the Openpay (ASX:OPY) share price is up and down today
• ASX 200 up 0.35%: Moderna vaccine success, Afterpay update, Westpac upgraded
• Here’s how the ASX 200 compares to other global indices
• Macquarie (ASX:MQG) picks best ASX stocks to buy for 2021 post-COVID recovery
• ASX 200 on watch after study shows Moderna’s COVID-19 vaccine is 94.5% effective

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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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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The CannPal Animal Therapeutics Ltd (ASX: CP1) share price is shooting higher today, rising 20% to 15 cents per share. The CannPal share price closed at 12 cents a share last Friday after the company was placed in a trading halt. CannPal opened today at 16 cents per share before edging back slightly to its current price of 15 cents. Incidentally, the trading halt meant CannPal missed the ASX shutdown yesterday.

Today’s rise in the CannPal share price is good news for investors. It means the company’s shares are 25% up for the year so far, up 36% since 9 November, and up 114% since 25 March.

So what is this company and why is the CannPal share price soaring today?

What is this ASX cannabis company?

We can almost ascertain what this company does through its name alone. CannPal Animal Therapeutics describes itself as an “animal health company”. It is developing “innovative and naturally derived plant-based therapeutic products for pets targeting the endocannabinoid system”. The company was founded in Australia in 2016.

CannPal has a “research focus” on cannabinoids, the “active pharmaceutical ingredients” found in the cannabis (marijuana) plant. According to the company, CannPal has “identified a significant opportunity” to benefit from the fast-growing medical cannabis markets for the purposes of animal health.

The company asserts that “innovation in the animal health industry is lacking”. It notes that existing treatments for pet conditions like arthritis and cancer are reportedly replete with side effects like nausea, appetite loss, internal bleeding and depression.

In response to this problem, CannPal is working to “further explore the natural healing abilities of compounds that can target the endocannabinoid system” in order to develop treatments for these issues that are natural and less likely to produce side effects. These treatments work by acting on the endocannabinoid system. The company informs us that this is “a system of receptors and compounds that are involved in almost every disease state, especially inflammation, pain and neurological conditions” in mammals.

CannPal, as of the time of writing, does not have any products currently in the market. However, it is currently “in the process” of testing a lead drug candidate by the name of “CPAT-01D”. This drug is a pain control drug for canines (dogs). It is also testing ‘DermaCann’ – a product for canine skin health.

Why is the CannPal share price shooting higher today then?

We can likely put the dramatic move in this company’s share price today down to an ASX announcement the company released this morning.

In this announcement, CannPal announced that it has “entered into a scheme implementation”. This involves another ASX cannabis company, AusCann Group Holdings Ltd (ASX: AC8). This ‘scheme’, if successful, will result in AusCann acquiring 100% of CannPal shares – in other words, a takeover. AusCann is willing to pay a price of 18.4 cents per share under the arrangement. That likely explains why the CannPan share price surged on trade resumption today. The offer price is more than a 50% premium to CannPal’s closing share price last week.

CannPal tells investors that the deal “gives CannPal access to the resources required to accelerate the Company’s growth objectives”. According to CannPal, “the two companies will form a combined entity with the financial resources and technical expertise to rapidly accelerate the commercialisation of human and animal health products”.

The company goes on to say that “the combined group will also benefit from a strengthened leadership team, shared staff and administration, operational cost savings, intellectual property and procurement synergies”.

Reportedly, CannPal’s largest and founding shareholder, the Merchant Opportunities Fund, has indicated its intention to vote in favour of the scheme. This fund holds approximately 19.88% of the CannPal shares on issue. The CannPal board is unanimously recommending shareholders vote in favour of this scheme as well.

It’s this development which is likely behind the surging CannPal share price today.

More reading

• Look out for the Auscann (ASX:AC8) and Cannpal (ASX:CP1) share prices post trading halt
• Auscann (ASX:AC8) share price climbs higher on sale agreement

Motley Fool contributor Sebastian Bowen 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 ASX stock of the day: CannPal Animal Therapeutics (ASX:CP1) shares shoot 25% appeared first on Motley Fool Australia.

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The Openpay Group Ltd (ASX: OPY) share price is on the move today after the company released a positive trading update for October and November.

Shares in the buy-now-pay-later (BNPL) company started the day in negative territory before surging up 4% higher to $2.84. That trend has since flattened, with the Openpay share price now trading up 0.73% at $2.75 at the time of writing.

Let’s take a look at the company results.

Trading update

For the period ending October 31, Openpay reported continued strong growth across its leading indicators in Australia.

• Active plans increased to 1,149, representing a 233% uplift of the corresponding period (pcp).

• Active customers totalled 390,000, a 143% jump during the same time last year.

• Active merchants grew to 2,346, up 34% on October FY20.

• Total transaction value (TTV) rose to $25.8 million, reflecting a 101% improvement on the pcp.

The robust results were achieved by customer demand and merchant acquisition in key markets.

During November to date, Openpay reported its strongest TTV on record due to Australian online sales initiatives. The BNPL company expects the upcoming sales season leading into Black Friday, Cyber Monday, and Christmas will bode well for the company.

Major partnerships

Openpay also noted that it signed on significant merchants to its platform. These include major online retailer Kogan.com Ltd (ASX: KGN) and NASDAQ listed, BigCommerce Holdings Inc. (NASDAQ: BIGC).

The latter agreement will see Openpay’s BNPL solution integrate into BigCommerce’s eCommerce marketplace in Australia and the United Kingdom. BigCommerce has more than 5,000 existing trading merchants across both countries.

What did the CEO say?

Speaking on the positive results, Openpay CEO Michael Eidel said:

Openpay has continued its robust business performance over the past two months following our record performance in the September quarter. We’re continually delivering on our strategy of building a high-growth merchant portfolio based on strategic partnerships.

Alongside this continued growth in our core key markets of Australia and the UK, we’re also pleased to have been included in the High Growth Export Services program by Federal Government trade and investment agency, Austrade. This initiative will greatly assist with our global vision and our aim of expanding into new markets to complement our current strong growth in our existing markets.

Updated ASIC report on BNPL sector

In November 2018, the Australian Securities and Investments Commission (ASIC) released a report on the BNPL sector. Titled, Report 600: Review of Buy Now Pay Later Arrangements, the report looked into developing a code of practice for BNPL providers.

ASIC will release Report 672, an updated version of the report, in the coming months. The review will seek to develop a set of obligations to accommodate the code member’s different business models.

Openpay addressed ASIC concerns about missed payments fees, saying it was continuing to evolve its product and customer experience. The company noted that customers were able to change repayment dates without incurring fees. Furthermore, there was a cap on late payment fees for those customers who delayed payments.

Mr Eidel commented on the ASIC inquiry, saying:

Openpay is highly sensitive to the need to provide products to consumers in a safe and responsible manner. This is why we make our product information about our fees, and the fact that we never charge interest, as transparent as possible and also why we have a proactive hardship policy if customers are experiencing any particular difficulty with their repayments.

We are grateful for ASIC’s ongoing review of the sector and welcome the implementation of the BNPL Code of Practice, which is expected to come into effect in early 2021.

More reading

• Macquarie (ASX:MQG) picks best ASX stocks to buy for 2021 post-COVID recovery
• These ASX shares have been unstoppable in FY 2021
• Fund managers have been buying Kogan (ASX:KGN) and this ASX share
• This cheap ASX share is supplying US giants: fundie
• Afterpay (ASX:APT) share price underperforming after ASIC finds more BNPL customers falling behind

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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 the Openpay (ASX:OPY) share price is up and down today appeared first on Motley Fool Australia.

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