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On Wednesday the S&P/ASX 200 Index (ASX: XJO) had a mixed day as investors kept one eye on the U.S. election. The benchmark index ended the day slightly lower at 6,062.1 points.

Will the market be able bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to rise.

The Australian share market looks set to push higher after investors responded positively to the U.S. election vote counting. Although the actual winner still remains unclear, the Republicans appear likely to win the Senate. According to the latest SPI futures, the ASX 200 is poised to open the day 55 points or 0.9% higher. At the time of writing, the Dow Jones is up 2.7%, the S&P 500 has risen 3.3%, and the Nasdaq has jumped a sizeable 4.4%.

NAB full year results.

The National Australia Bank Ltd (ASX: NAB) price will be on watch when it releases its full year results this morning. According to a note out of Goldman Sachs, it expects the banking giant to report cash earnings before one-offs of $3,988 million. This will be a 31.9% decline on the prior corresponding period. A fully franked final dividend of 30 cents per share is expected to be declared, bringing its full year dividend to 60 cents.

Oil prices storm higher.

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the rise today after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 3.5% to US$39.01 a barrel and the Brent crude oil price has risen 3.7% to US$41.20 a barrel.

Gold price weakens.

Gold miners Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) may drop lower today after improving investor sentiment weighed on the gold price. According to CNBC, the spot gold price has dropped 0.8% to US$1,895 an ounce.

Annual general meetings

Another group of companies will be holding their virtual annual general meetings today. This includes supermarket operator Coles Group Ltd (ASX: COL), travel agent Flight Centre Travel Group Ltd (ASX: FLT), private health insurer NIB Holdings Limited (ASX: NHF), and wine company Treasury Wine Estates Ltd (ASX: TWE). These companies are likely to provide trading updates at their events.

More reading

• Travel shares are flying higher today. Here’s why.
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX dividend shares with better yields than term deposits
• Zip and Credit Clear were among the most traded shares on the ASX last week
• ASX 200 finished 2% higher on Tuesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and NIB Holdings 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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All companies start somewhere and don’t become blue chips overnight.

Three ASX shares that are at the start of their journeys are listed below. Here’s what has investors watching them closely:

Carbon Revolution Ltd (ASX: CBR)

Carbon Revolution is a $350 million advanced manufacturing company that designs, manufactures, and markets single piece carbon fibre wheels for motor vehicles. This style of manufacturing wheels means the company is able to reduce the weight of them materially. Management estimates that these weight savings can result in up to 40% reductions in inertia. This is a big deal for car companies, which are always looking for ways to make their vehicles more efficient. Carbon Revolution counts the likes of Ford and Ferrari as customers. Last month Carbon Revolution reported quarterly revenue of $11.8 million, up 45.9% on the previous quarter and 26.3% on the previous corresponding period.

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a $223 million developer of enterprise imaging and informatics solutions for image viewing, storage, and workflow management. These solutions are able to be implemented individually, or as a comprehensive end-to-end image management and diagnostic viewing platform. The company has designed them to assist healthcare organisations with removing technology limitations to ensure patient information flows easily and can be accessed instantly. This helps to inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes. In FY 2020 Mach7 reported a 102% increase in revenue to $18.9 million. This is still only scratching at the surface of its market opportunity. At the last count, management was estimating that the company’s total addressable market is worth US$2.75 billion per year.

Whispir (ASX: WSP)

Whispir is a $367 million software-as-a-service communications workflow platform provider. Its popular platform automates communications between organisations and people. This enables users to improve their communications through automated workflows to ensure stakeholders receive accurate, timely, useful, and actionable insights. Whispir was a very strong performer in FY 2020. For the 12 months ended 30 June 2020, it posted a 25.5% increase in revenue to $39.1 million and ARR growth of 34% to $42.2 million. Management estimates that the Workflow Communications platform as a Service market could reach US$8 billion per year by 2024.

More reading

• Why Bendigo and Adelaide Bank, Mach7, National Storage, & Unibail-Rodamco-Westfield are dropping lower
• 5 ASX tech shares that could be the next WAAAX stocks
• Is Temple & Webster Group Ltd (ASX:TPW) still a buy?
• Why the Carbon Revolution (ASX:CBR) share price soared 14% higher today
• Whispir (ASX:WSP) share price tumbles 9% on robust Q1 performance

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 and recommends MACH7 FPO and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution Limited, MACH7 FPO, and Whispir 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 rise and rise of online trading has largely been a blessing.

It has simplified and streamlined the process of buying and selling shares, both on the ASX and international share markets. It’s greatly reduced brokerage fees on every trade you make. And it’s opened the door to new investors who likely would have remained on the sidelines if they had to go through traditional brokers.

One of the biggest disruptors in the online trading space is Robinhood, owned by United States based Robinhood Markets, Inc.

If you’re unfamiliar with Robinhood, it’s a mobile app that allows you to invest in shares and options. (And cryptocurrencies, if you’ve got the cast iron stomach for that.) It’s best known for leading the way in the ‘zero brokerage’ fee space.

Founded 7 years ago by Baiju Bhatt and Vlad Tenev, the app took off in popularity in the US this year as lockdowns on social distancing saw many people stuck at home and hoping to earn some extra money.

Its millions of new users are primarily younger and often new to the world of investing.

But what they, and the users of other online accounts, almost certainly hadn’t counted on was the risk of their trading accounts being hacked.

Hackers selling trading account details on the dark web

According to a Bloomberg review of dark web marketplaces, more than 10,000 email login credentials linked to Robinhood accounts were up for sale on the dark web this week. This could enable would-be buyers to access customer accounts at Robinhood Markets.

Robinhood’s internal investigation revealed almost 2,000 accounts were compromised.

Bloomberg notes that:

The firm said there are no signs its systems were breached and it employs several security measures, while encouraging customers to enable two-factor authentication. Robinhood has also promised to fully compensate customers if the company determines they lost money because of unauthorised activity.

It’s not just Robinhood users being targeted, though Eli Dominitz, chief executive officer of Q6 Cyber, says the number of hacked emails involving Robinhood are 5 times more than those tied to other brokerages.

He explained: “If they feel that Robinhood gives them greater upside than trying to steal money from Bank of America, that’s what they’re going to do.”

There has been no indication yet that accounts of online trading platform Superhero, oft dubbed the ‘Australian Robinhood’ have been hacked.

The brainchild of Afterpay Ltd (ASX: APT) co-founder Nick Molnar and Zip Co Ltd (ASX: Z1P) co-founder Larry Diamond, the new Superhero app provides low cost brokerage options on a mobile platform.

Regardless of which trading platform you use, though, if you’re doing it online, it pays to be diligent. And certainly take the operators’ advice on two-factor authentication.

More reading

• PayPal’s buy now, pay later service is surging
• Afterpay (ASX:APT) share price still higher than these big broker targets
• Zip and Credit Clear were among the most traded shares on the ASX last week
• Laybuy (ASX:LBY) launches tap to pay digital card
• Why these 5 fintech ASX shares are surging

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

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The Federal Government announced on Wednesday not 1 – but 2 – 5G spectrum auctions for next year.

Communications Minister Paul Fletcher revealed that high-band 5G spectrum (26GHz) would be sold off in April, while low-band (850-900MHz) would be auctioned sometime in the second half of 2021.

Mid-band spectrum was sold in late 2018.

“We are making the low, mid and high bands available so that the telcos can provide better, faster and stronger 5G in Australia,” said Fletcher.

“Low band spectrum can carry the 5G mobile signal longer distances, and is best for wide coverage indoors and outside. The mid band spectrum provides broad coverage and fast speeds and the high band spectrum will allow blazing fast speeds over shorter distances.”

The government thus declared 2021 as the ‘Year of 5G’. 

It forecasts 5G technology will add up to $2,000 in gross domestic product for each Australian after the first decade.

5G’s current state of play in Australia 

Telstra Corporation Ltd (ASX: TLS) and rival Optus – owned by Singapore Telecommunications Limited (SGX: Z74) – already operate 5G mobile networks in limited areas.

Third player TPG Telecom Ltd (ASX: TPG) has thousands of locations in the planning phase. It plans to cover Australia’s 6 largest cities by the end of next year.

Telstra shares were down 1.09% on Wednesday, to sit at $2.73 at close of trade. TPG was down 0.99% at $7.00.

Fletcher said 5G was important not just for faster mobile and broadband speeds but it would enable use cases like “smart farming, robotics, telemedicine and automated vehicles”.

“The sooner 5G is deployed, the sooner Australia can secure these benefits,” he said.

For a given area, 5G can connect 10 times the numbers of devices as a 4G network. This is why it can better accommodate “internet of things” devices such as agricultural sensors and remote controls for vehicles.

More reading

• Why the Novatti (ASX:NOV) share price jumped 10% on open today
• ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches
• 3 ASX blue chip shares to buy for dividends
• Top ASX shares to buy in November 2020
• Reserve Bank tipped to cut rates to record lows next week

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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 Element 25 Ltd (ASX: E25) share price made some big moves today, climbing 13.25% to 94 cents before falling back to close at 88.5 cents. This came after the company released an investor update to shareholders at the AGM this morning.

What did Element 25 announce?

The company reported that its Butcherbird manganese project in Western Australia was on track for commissioning in the first quarter of calendar year 2021.

Key features of the Butcherbird asset include:

• More than 260 million tonnes of manganese or measured, indicated and inferred
• Maiden proved and probable reserves of 50.6 million tonnes at 10.3% manganese for 5.22 tonnes of contained manganese
•  Pre feasibility studies based on measured and indicated resources suggest the asset could operate for 42 years
• The location is adjacent to bitumen roads and access to Port Hedland bulk handling facilities
• Described by the company as offering “low cost mining” with “simple processing”

The company advised a mining lease has already been granted with all access agreements finalised. Permit applications were well advanced and the company has secured project financing. 

Element 25 said it aimed to become a globally significant manganese producer, with a goal to generate strong, sustainable investor returns over the long term.

Also of note was a special resolution put forward at the AGM for a 10% placement facility. This would allow the company to conduct placements for up to 10% of its shares in the 12 months following the AGM in addition to the 15% already allowed. The resolution passed with the 75% majority necessary. 

About the Element 25 share price

Element 25 is minerals exploration and development company with assets in Western Australia.  

In the quarter to 30 September 2020, Element 25 spent $2.80 million on operations, mainly on exploration and development. At 30 September 2020, Element 25 had cash of $7.65 million in addition to listed equity investments worth $4.16 million.

The Element 25 share price is up 831.58% since its 52-week low of 9.5 cents, and up 420.59% since the beginning of the year. The Element 25 share price is up 345% since the start of last year.

More reading

• Raiz (ASX:RZI) share price up on positive business update
• PayPal’s buy now, pay later service is surging
• Why these 4 ASX tech shares surged today
• ASX 200 ends mixed on Wednesday
• Why the Downer EDI (ASX:DOW) share price has dropped today

Motley Fool contributor Chris Chitty 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 RAIZ Invest Ltd (ASX: RZI) share price finished the day up 4.76% to 77 cents a share. The gains came after the company released a positive business update, which was headlined by funds under management (FUM) growth of 5% from last month to $500.06 million. 

Raiz is a fintech company that operates in Australia, Indonesia and Malaysia. The Raiz platform allows Australian customers to micro-invest the remaining round up of everyday purchases in exchange traded funds. 

What moved the Raiz share price today?

According to the update, in Australia, Raiz’s FUM grew by 27.9% versus the previous corresponding period (pcp). In addition, both retail and superannuation saw gains of 5.4% and 2.6%, respectively.

Given Victoria only emerged from its lockdown late in the month and there was a global stock market sell off in the last part of the month, the company believes this bodes well for the remainder of Fy21.

It goes on to detail that Raiz saw an increase in active customers of 3.7% month on month, and a 43.8% increase against pcp. 

Ongoing growth

In an email to shareholders released as an announcement today, CEO George Lucas commented on the impact this recession is having particularly on young Australians, who make up most of the company’s core customer base.

Mr Lucas went on to say:

Raiz remains on an upward trajectory, and the growth in Active customers and FUM positions us to deliver a solid result. This is also validated by many of our institutional shareholders, such as the Thorney Investment Group, that have also noticed our achievements and increased their holding in Raiz Invest over the past few months.

He also highlighted the company’s growth in Southeast Asia, an area where the product only commenced in FY20:

In Southeast Asia, trends continue to be pleasing. In Indonesia, the three-month gain for Active Customers is 84%, while in Malaysia it’s 311.6%. The monthly gains in October, 10.9% in Indonesia and 22.5% in Malaysia, illustrate growth is being maintained despite business conditions remaining difficult because of COVID restrictions and lockdowns.

The path to this update was detailed in the company’s FY20 performance, which outlined how Raiz, against strong headwinds of the pandemic and economic recession, was able to achieve significant growth. For example, FY20 revenue per customer in Australia increased by 71.4%. FUM increased by 30.6% to $453.6 million, meaning it has taken only 3 months to grow an additional $50 million.

Also of note is the company’s change in leadership management. George Lucas is moving to a group managing director role. Meanwhile, Brendan Malone, who is group COO, will also become CEO of the Australian business.

The Raiz share price has grown by 24.19% over the past 6 months.

More reading

• Why these 4 ASX tech shares surged today

Motley Fool contributor Daryl Mather 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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Mention the phrase ‘buy now, pay later’ (BNPL) to an ASX investor and which company names pop up? The big players Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P). Then there’s Sezzle Inc (ASX: SZL) and Openpay Group Ltd (ASX OPY).

BNPL has taken the ASX by storm in the past 2 years, with multiple companies such as those listed above recording triple-digit share price gains since 2018.

But Paypal Holdings Inc (NASDAQ: PYPL) is probably not one of them. PayPal is known for its e-commerce prowess. It has become almost as ubiquitous as the card payment giants Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA) in the global payments scene over the past decade or so.

PayPal and BNPL

According to the Australian Financial Review (AFR), PayPal has benefitted enormously from the changes that the coronavirus pandemic has brought to society. The US payments giant is very close to reporting more than US$1 trillion in annualised transaction value, with BNPL payments making “tremendous” progress, the AFR reported.

PayPal chief executive Daniel Shulman was quoted as saying:

I’m extraordinarily pleased with the success we’re having with buy now, pay later… We rolled this out in France several months before we introduced this into the US and UK, and the up-tick that we’re seeing in the French market is well beyond any of our expectations. We just rolled out in the US and the demand is tremendous.

PayPal offers a BNPL product called “Pay in 4” or “Pay in 3”, which, as the name suggests, allows customers to pay in 3 or 4 interest-free instalments. Unlike the products offered by ASX players like Afterpay and Zip, PayPal’s offering doesn’t charge any merchant fees for the privilege of using the BNPL option beyond its established pricing structure.

PayPal has also been expanding into other ‘unconventional’ payment methods like bitcoin and other cryptocurrencies.

What can ASX investors take from this news?

It will be interesting to see if PayPal’s data shows a shift towards the BNPL payments trend as a whole, or if it shows a shift within BNPL to larger global players like PayPal at the expense of ASX players like Aferpay and Zip. Remember, Zip and Afterpay are also trying to expand into the same markets that PayPal serves, such as the US and the UK.

One thing is for certain though: it looks as though the BNPL concept is very much here to stay.

More reading

• Afterpay (ASX:APT) share price still higher than these big broker targets
• Zip and Credit Clear were among the most traded shares on the ASX last week
• Laybuy (ASX:LBY) launches tap to pay digital card
• Why these 5 fintech ASX shares are surging
• These were the best performing ASX tech shares in October 

Sebastian Bowen owns shares of Mastercard and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Mastercard, PayPal Holdings, and Visa. 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 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 Mastercard, 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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During a day when the entire world seems to be focused on the US election, there were a number of ASX tech shares that enjoyed big gains. Here’s a closer look at today’s winners, and what was moving their share prices.  

4 ASX tech shares with massive share price gains today

Healthcare technology

The Nanosonics Ltd. (ASX: NAN) share price rocketed by 12.50% today. Nanosonics sells products related to reducing infection. Today it posted a business update with a lot of good news in it for the past four months. For example, the company has posted a 4% increase in consumable units installed. Moreover, the number of new trophon units installed was 91% of the prior corresponding period (pcp). 

Industry software

The Infomedia Limited (ASX: IFM) share price closed out the day’s trade up by 10.49%. Infomedia is a leading software provider in parts, service and data insights to the global automotive industry. 

The company today signed a strategic pan-European contract with Ford Europe. This is to provide the next generation (Next Gen) of its Microcat electronic parts catalogue (EPC) in the region. The total contract value of this for the ASX share is approximately $14 million over 5 years.

The Vection Technologies Ltd (ASX: VR1) share price rose by 9.09% today. This company provides 3D virtual reality software so that designers can interact with their designs of products. For example, the company’s product, FrameS, is used by luxury car makers to provide virtual showrooms for customers. This includes brands such as Lamborghini, Maserati, Volvo and Philip Morris.

Vection announced a partnership with Luiss Business School yesterday. This company has accreditations that will allow Vection to accelerate the promotion of its augmented reality suite of healthcare solutions across the public and private healthcare sectors. The school is the creator of the Italian model for risk management in healthcare.

Fintech ASX shares

RAIZ Invest Ltd (ASX: RZI) is an fintech company in Australia, Indonesia and Malaysia. It allows Australian customers to micro-invest the remaining round up of everyday purchases in exchange traded funds. Today, the company published a business update filled with good news. 

This includes a 55% increase in customer sign ups on pcp. In addition, a 57.1% increase in investment accounts on pcp, and a 43.8% increase in active accounts. In fact, the total funds under management increased by 27.9%, reaching just over half a billion. The Raiz share price finished the day up by 4.76%.

More reading

• ASX 200 ends mixed on Wednesday
• Infomedia (ASX:IFM) share price up 7% on contract win
• The Nanosonics (ASX:NAN) share price is surging higher
• Why the Vection (ASX:VR1) share price has jumped another 9.5%
• ASX stock of the day: Purifloh (ASX:PO3) shares surge 22% on update

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 Infomedia and Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics 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 S&P/ASX 200 Index (ASX: XJO) finished slightly down by 0.07% to 6,062 points as the US election result remains unknown.

Here are the highlights from the ASX today:

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price was the best performer today, it rose by 12.5% in reaction to an update.

It gave an update for the first four months of FY21. The ASX 200 healthcare business said that unit purchases of consumables by end customers in the four months to 31 October 2020 were up 4% compared to the prior corresponding period – this refers to a period before the COVID-19 pandemic.

However, when comparing unit purchases of consumables by end customers in the first fourth months of FY21 to the last four months of FY20, there has been growth of 25%.

In the four months to 31 October 2020, the number of new Trophon units installed was 91% of the prior corresponding period (meaning it was down 9%). Compared to the last four months of FY20, the number of new Trophon units installed was up 16%.

Nanosonics CEO Michael Kavanagh said: “During the second wave of COVID-19 in North America, we have observed that hospitals in that region appear better equipped to manage the impact of the pandemic. Accordingly, ultrasound procedure volumes requiring high level disinfection did not seem to be impacted to the same degree as in the first wave. However, this does not guarantee that future waves will follow the same pattern in North America or other regions.

“Despite ongoing periods of uncertainty we remain optimistic about the future and investments in our growth agenda continue across the business as we look to further expand our geographical footprint and product portfolio. We remain committed to doing everything we can as an infection prevention company to support all of our customers during these unprecedent times.”

Pushpay Holdings Ltd (ASX: PPH)

Digital giving business Pushpay announced its FY21 half-year result today. The Pushpay share price fell 11% in reaction, despite upgrading its guidance.

Pushpay announced that its total processing volume increased by 48% to US$3.2 billion. Management said it expects to grow its processing volume as it wins more churches and there is further adoption of digital giving.

Pushpay’s revenue grew by 51% to US$86.6 million with operating revenue growth of 53% to US$85.6 million.

The gross profit margin improved by three percentage points to 68% and is expected to stay around this current level over the rest of the financial year.

Pushpay’s earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) rose by 177% to US$26.7 million. The EBITDAF margin improved from 17% to 31%.

The company said its net profit after tax (NPAT) improved by 107% to US$13.4 million and operating cashflow jumped 203% to US$27 million.

Pushpay upgraded its full year EBITDAF guidance range to be between US$54 million to US$58 million. It’s still aiming for US$1 billion of revenue in the long-term.

Woolworths Group Ltd (ASX: WOW)

The ASX 200 supermarket giant announced its first quarter sales update today.

Overall, total sales rose by 12.3% to $17.85 billion. Australian food sales grew by 12.9% to $12 billion. New Zealand food grew total sales by 6.9%, in New Zealand dollar terms, to NZ$1.88 billion.

Now to the non-food businesses. Big W sales went up 20.4% to $1.1 billion. Endeavour Drinks revenue grew by 21.4% to $2.65 billion and hotels revenue dropped 33.2% to $313 million.

There was a large increase in the amount of e-commerce sales with growth of 86.7% to $1.5 billion.

Woolworths also reported that $164 million was paid to remediate salaried team members for salary payment shortfalls. In total, $281 million has been paid to date.

In October 2020, Australian food comparable sales growth was in the high single digits, which moderated over the month. Growth in New Zealand also moderated compared to the first quarter of FY21. Endeavour Drinks and Big W have “continued to perform strongly.” Despite the Victorian closures, the hotels business was profitable in the first quarter by materially down on last year.

More reading

• With interest rates near zero these ASX income shares are in focus
• ASX copper miners brush off latest Chinese tariff threat
• The Nanosonics (ASX:NAN) share price is surging higher
• Quantitative Easing (QE) is here. What does it means for ASX shares?
• Here’s why the Woolworths (ASX:WOW) share price is inching higher

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 Nanosonics Limited and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Nanosonics Limited and 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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Downer Edi Limited (ASX: DOW) share price has dropped 2.17% to $4.51 today on news of a lost laundry bid. Shares in the integrated services provider rallied up to $4.62 in mid-afternoon trading before falling sharply.

Downer Edi provides a range of services in Australia and New Zealand in transport, utilities, facilities, engineering, construction, maintenance and mining.

What happened?

South Pacific Laundry has withdrawn its bid to acquire Spotless Laundries, which is part of Spotless Group Holdings and wholly owned by Downer.

Spotless is one of Australia’s largest commercial laundry operations, alongside the South Pacific Laundry operation. But a merging of two major players caused concerns with regulators.

In a statement in August, Australian Competition and Consumer Commission (ACCC) commissioner Stephen Ridgeway said:

This transaction would combine the two largest commercial laundry suppliers in Sydney and Adelaide, and two of the biggest suppliers in Melbourne and Perth, increasing market concentration where there are already a limited number of comparable suppliers.

The failed offer from South Pacific Laundry follows a similar failed bid from Alsco Pty Ltd last month. Alsco also withdrew its bid for the laundry titan as a result of similar regulator concerns. 

More on the Spotless Group

Spotless and Downer both offer multiple service streams to multiple clients. Service lines include security, cleaning, catering and asset management to industries including defense, education, transportation and healthcare amongst others. 

Downer acquired about 88% of the Spotless Group in 2017 and bought the remaining shares this year. 

Spotless Laundries operates 13 commercial laundries servicing 4,800 clients across Australia and New Zealand. The business itself has been around since 1946, starting as a single dry cleaning shop in Melbourne. 

Why is Spotless trying to sell its laundry business?

Downer CEO Grant Fenn said that the Spotless Laundries business was not core to Downer’s service offerings.

He said Downer was focusing on building to its strength, which was an “asset-light, services-focused” business model.

Spotless Group has invested $47 million in capital improvement projects since 2017. FY20 revenue for the laundries business sat at $265 million in recent reports.

About the Downer share price

The Downer share price has performed poorly in 2020, losing as much as 40%. The coronavirus pandemic hit the share price hard and it’s struggled to recover. The Downer share price has regained less than half it’s lost ground since March.

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Motley Fool contributor Glenn Leese 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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