Tag: Motley Fool

The Nsx Ltd (ASX: NSX) share price more than doubled after the alternative stock exchange operator posted its quarterly update.

The NSX share price rocketed over 112% to 18 cents during lunch time trade when the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) are only 0.1% higher.

Investors got excited after management reported a strong pick-up in the number of companies looking to list on its bourse.

NSX share price jumps on listing interest

NSX operates the National Stock Exchange of Australia (NSXA). During the quarter, it received four new pre-listing submissions, one new listing application, one new nominated adviser application and two new participant applications.

The forward pipeline for listings now stands at 30 applicants and volumes and interest have increased appreciably, added NSX.

Cash position and IT projects support NSX stock

Further, NSX reported an increase in cash of $450,000 to $5 million in the period. It also posted a net operating cash inflow of $651,000 and a $130,000 decrease in admin and corporate costs to $330,000.

Management provided an update on the NSXA Trade Acceptance Service (TAS) project. It said TAS is ready to be switched on with all but three of the 16 market participants.

It is also making progress on its IT trading system that will allow it to operate in parallel to the ASX Ltd (ASX: ASX) CHESS system. In due course, NSX believes NSXA will operate autonomously from CHESS.

Possible dark clouds

But it wasn’t all good news. Management suffered a defeat at its extraordinary general meeting (EGM) that was held in the quarter. Shareholders successfully voted against all resolutions to appoint additional directors to the board.

“The Company has received a section 249D notice with a resolution to remove Mr Thomas Price as a director,” said the NSX in its ASX statement.

“The EGM for this meeting is scheduled for the 30 October 2020.”

The company is also still feeling the impact from COVID‐19, which is affecting staff workflows. This is particularly pronounced in Victoria due to the mismanagement of the first outbreak. Fortunately, most of NSX’s business operations are undertaken in New South Wales.

More reading

• Will the outlook for ASX 200 shares stay bullish?
• ASX 200 flat: Big four banks push higher, Afterpay drops, Megaport sinks 10%
• 3 ASX shares I’d buy for summer 2021
• Warning: Here’s why keeping your savings in the bank is hurting your financial future
• 5 ASX 200 events to watch for this week

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

The post What you need to know about the surge in the NSX (ASX:NSX) share price appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3mbiTP7

The AnteoTech Ltd (ASX: ADO) share price has been a disappointing performer on Wednesday.

In afternoon trade the biotech company’s shares are sinking 12% lower to 11 cents.

Why is the Anteotech share price sinking lower?

Investors have been hitting the sell button today despite the release of study results from its COVID-19 Antigen Rapid Test using stored patient swab samples.

According to the release, an independent study was conducted by Spanish lateral flow developer and manufacturer Operon at its research facilities in Zaragoza, Spain.

This study was undertaken using locally acquired positive COVID-19 patient samples and a range of local negative samples.

The release explains that all the samples were Polymerase Chain Reaction (PCR) tested prior to the study. This means the study was able to have a direct head to head comparison of the performance of the AnteoTech COVID-19 Antigen Rapid Test against the lab-based testing process.

The latter is widely regarded as a very reliable measure of test sensitivity, according to management.

What did the study find?

The study found that Operon’s results aligned with AnteoTech’s in-house laboratory results using recombinant samples.

This means the test detected COVID-19 in the range of Ct 30 to Ct 35. This PCR level is typically recorded from patients who are at very early onset or recovery stages of the disease cycle and have very low levels of viral load.

AnteoTech’s CEO, Derek Thomson, commented: “We are very pleased to have reached this key milestone in our development of the AnteoTech COVID-19 Antigen Rapid Test. The control of COVID-19 requires highly sensitive testing to ensure all positive patients are identified and isolated at the point of care to ensure they don’t continue to spread the disease.”

“We believe we are making an important contribution to the control of the disease and we look forward to entering clinical trials following the final stages of our validation phase which we believe will lead to making our test available to global markets very soon,” he added.

More reading

• Microsoft (NASDAQ:MSFT) Azure partners with SpaceX to offer cloud computing in space
• Are these shares the next Afterpay (ASX:APT) and Appen (ASX:APX)?
• Why the Orora (ASX:ORA) share price is the best performer on the ASX 200 today
• 2 defensive ASX ETFs to add to a well-balanced portfolio
• Lazy landlords: why I’d buy REITs to make a passive income

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

The post AnteoTech (ASX:ADO) share price sinks 12% lower follow COVID-19 test update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2TcazC9

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.

Microsoft Corporation (NASDAQ: MSFT) announced today that it would partner with Elon Musk’s SpaceX and others to bring cloud computing to the “final frontier.” The initiative, dubbed Azure Space, will use the services of a combined fleet of low-orbit spacecraft and traditional satellites to better connect the evolving space industry with the cloud. 

The service will target both commercial and government space agencies, providing a system of integrated, secure links connecting a variety of cloud, space, and ground capabilities. Microsoft will also provide mobile cloud data centers that can be deployed anywhere across the planet, particularly in challenging environments with little or no infrastructure, which will connect to and communicate with the partner satellites. 

SpaceX, which has gained a name for itself with the use of reusable two-stage rocket and astronaut capsules, is working on a constellation of internet-beaming satellites called Starlink, with plans to bring internet service to virtually anywhere on Earth.

The news follows Microsoft’s announcement last month of the launch of Azure Orbital, a service designed to enable satellite operators to communicate with and control their satellites, as well as “gathering, transporting, and processing of geospatial data.” Orbital will also enable operators to directly downlink data to their virtual network in Azure.

Microsoft will compete directly with Amazon.com Inc (NASDAQ: AMZN) Web Services (AWS) Ground Station, which offers a similar suite of technology services, allowing users to communicate with, downlink, and process satellite data directly to the cloud. CEO Jeff Bezos also owns rocket company Blue Origin, which competes with SpaceX and is planning its own constellation of 3,236 satellites.  

Other collaborators on the Azure Space project include SES, one of the world’s largest satellite operators, ground communication specialist KSAT, ground station provider ViaSat Inc (NASDAQ: VSAT), and aerospace and defense specialist Kratos Defense & Security Solutions Inc (NASDAQ: KTOS). Partners also include mission control software provider Kubos, ground communications provider Amergint, and US Electrodynamics, which provides satellite teleport services.

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

More reading

• Is Apple (NASDAQ:AAPL) stock overvalued?
• Buy alert: Microsoft (NASDAQ:MSFT) stock is headed higher
• ASX investors were buying Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL) shares last week
• ASX investors were buying Tesla (NASDAQ:TSLA) and Snowflake (NYSE:SNOW) shares last week

Danny Vena owns shares of Amazon and Microsoft. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Microsoft and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2021 $115 calls on Microsoft, long January 2021 $85 calls on Microsoft, and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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 Microsoft (NASDAQ:MSFT) Azure partners with SpaceX to offer cloud computing in space appeared first on Motley Fool Australia.

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

from Motley Fool Australia https://ift.tt/3m5T56P

It wasn’t that long ago that Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) were mid cap tech shares.

Today they are multi-billion-dollar companies that have generated long term shareholders with some incredible returns.

While I still believe they have the potential to beat the market for some time to come, due to the law of large numbers, I wouldn’t be expecting the same level of returns again over the next five years.

So, if you’re looking for outsized returns in the coming years, you might want to take a look at these much smaller tech companies:

Audinate Group Limited (ASX: AD8)

Audinate is the digital audio-visual networking technologies provider behind the popular Dante product. This award-winning audio over IP networking solution is used widely across a number of industries globally and is head and shoulders above the competition. In fact, the number of devices enabled with Dante was 2,804 at the end of FY 2020. This is eight times greater than its next biggest competitor according to management. There are also 120,000 Dante trained and certified individuals globally.

And while 2020 has been a tough year for the company because of the pandemic, it was pleasing to see that its sales are now rebounding. I’m confident that when the crisis passes demand will start to grow again and its sales will accelerate. After which, thanks to its leadership position in a sizeable market, I expect Audinate to grow at a strong rate over the remainder of the 2020s.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company that provides a unified platform that streamlines a wide range of processes. It has been growing at a very strong rate in recent years thanks to the quality of its platform and the increasing adoption of cloud-based business tools.

Pleasingly, this strong form has continued in FY 2021, with ELMO this week reporting record cash receipts of $15.6 million. This was a 29.8% increase on the prior corresponding period. The company has also put some of its hefty cash balance to work with the acquisition of Breathe for an initial payment of 18 million pounds (A$32.4 million). This acquisition provides it with entry into the small business market in Australia, New Zealand, and the UK. It also gives it cross-sell opportunities for its existing modules. Together with other potential acquisitions, I believe ELMO is in a position to capture a growing slice of its large addressable market over the 2020s.

More reading

• Top brokers name 3 ASX shares to buy today
• ASX 200 flat: Big four banks push higher, Afterpay drops, Megaport sinks 10%
• The ASX 200 slid 0.72% lower today
• Douugh and Afterpay were among the most traded shares on the ASX last week
• ASX 200 down 0.2%: Afterpay rockets on Westpac deal, Zip climbs, BHP’s Q1 update

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 Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended AUDINATEGL FPO and Elmo Software. 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 Are these shares the next Afterpay (ASX:APT) and Appen (ASX:APX)? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2H9TW7V

The best performer on the S&P/ASX 200 Index (ASX: XJO) on Wednesday has been the Orora Ltd (ASX: ORA) share price.

In afternoon trade the packaging company’s shares are up a sizeable 8% to $2.71.

Why is the Orora share price storming higher?

Investors have been buying Orora’s shares on Wednesday following the release of its annual general meeting update.

As well as providing a summary of its performance in a very difficult FY 2020, the company provided investors with an update on how it was faring in the new financial year.

According to the release, the company notes that the combination of COVID-19 and the pending US election has seen some challenges and uncertainty persisting. Nevertheless, management revealed that Orora’s businesses have continued to prove their strength and resilience, with all three continuing to operate as essential service providers.

Pleasingly, at the end of the first quarter, the Australasian Beverage Business has continued to deliver as a market leader in all segments. This has led to its segment earnings before interest and tax (EBIT) being in line with the first quarter of the prior year despite an adverse product mix.

Things were even better in North America, where both its OPS and Orora Visual businesses have been trading steadily. So much so, EBIT across both businesses is tracking ahead of the first quarter of last year.

Management revealed that the strengthening of the North American performance is thanks largely to its comprehensive business improvement plans. It notes that these plans have delivered, despite the ongoing challenges and uncertainty within the region.

What’s next for Orora?

No guidance has been given for the remainder of the half or the full year.

However, management is confident that its revised strategic approach and prudent approach to capital will help Orora continue to move from strength to strength.

More reading

• ASX 200 flat: Big four banks push higher, Afterpay drops, Megaport sinks 10%
• Why Lynas, Orora, Praemium, & Tabcorp shares are racing higher today
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 next week

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

The post Why the Orora (ASX:ORA) share price is the best performer on the ASX 200 today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jkrcpM

I think exchange-traded funds (ETFs) are some of the best investments you can buy from a diversification standpoint. A share-based ETF normally works by holding a basket of shares within it. Thus, when you buy an ETF, you are really buying whichever shares that ETF holds. In this way, you can add ‘one share’ to your portfolio, when really you’re adding the 50, 100 or even 1,000 different shares within it.

Some ETFs are more growth focused. Others are more defensive – offering some theoretical protection in a market crash or economic recession. Here are 2 defensive ASX ETFs that I think any investor can add to their portfolio for diversification and balance.

2 defensive ETFs for a well-balanced portfolio

iShares Global Healthcare ETF (ASX: IXJ)

Our first defensive ETF tody is this healthcare-focused fund from Blackrock’s iShares. The ASX EFT has a few high-quality health care names, like CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC).

However, I think the global companies that IXJ holds offer a lot more. This ETF is heavily weighted (67.5%) towards the United States, as well as Switzerland (9.7%), Japan (6.3%) and the United Kingdom (4.17%). Some of IXJ’s top holdings include Johnson & Johnson (the name behind Band-Aids and Listerine), Novartis, Pfizer and Abbott Laboratories, plus 107 others.

This ETF covers an evergreen sector in healthcare and has returned an average of 16.48% per annum over the past decade. Thus, I think it’s a top choice for any portfolio today.

iShares Global Consumer Staples ETF (ASX: IXI)

Another iShares ETF, this fund instead tracks a global basket of consumer staples shares. Consumer staples are defined as goods we all ‘need’ rather than ‘want’. These typically include food, drinks, household essentials and vices.

Think about it, no matter the economic circumstances, we all need to buy food, toilet paper, laundry powder and soap. This simple fact can make the companies in this sector very powerful investments. We have seen this in play in 2020 especially. While consumers around the world were shunning all kinds of purchases in the midst of the COVID-19 pandemic, demand for these ‘staples’ held up extremely well.

IXI includes companies like Coca-Cola, Nestle, PepsiCo, Walmart, Diageo,  British American Tobacco, Procter & Gamble and Unilever. Like IXJ, it’s also heavily weighted towards the United States (53.55%). IXI’s holdings feature very old and very established companies, some of which pay hefty dividends as well.

This ETF has delivered an average return of 12.10% over the past decade. It also comes with a trailing dividend/distribution yield of 2.01%. For a defensive and robust holding that can fit in any ASX portfolio, I think IXI is another top choice today.

More reading

• 3 ETFs every ASX investor should consider today
• Here are 2 of the best ETFs you can buy today

Motley Fool contributor Sebastian Bowen owns shares of Ramsay Health Care Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 2 defensive ASX ETFs to add to a well-balanced portfolio appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3m5QABt

Investing money in real estate investment trusts (REITs) could be a sound means of obtaining a generous passive income. In some cases, their prices have fallen in recent months so that they now offer high yields relative to other income-producing assets.

Furthermore, investing in a REIT provides significant diversification and risk reduction. The wide range of properties they hold means that you are less reliant on a small number of assets for your income, which is often not the case with direct property investment.

In the long run, REITs could offer worthwhile capital returns as investor confidence improves and the economic outlook strengthens.

Making a passive income

The yields on offer from REITs are relatively appealing at a time when it is increasingly difficult to make a passive income elsewhere. The uncertain economic outlook has led many companies to reduce or even cancel their dividend payouts. Many others could follow in the coming months.

Meanwhile, low interest rates mean that other income-producing assets such as cash and bonds offer returns that are lower than inflation in some cases. Therefore, holding them could lead to a loss of spending power in the coming years that negatively impacts on your financial prospects.

As such, buying a range of REITs today could be a simple means of obtaining a worthwhile passive income from your capital. Many of them have a long track record of dividend growth that could prove to be relatively resilient in the coming years.

Reducing risks

Some investors may have previously bought property directly to make a passive income. While this may have been a successful strategy, it can carry a significant amount of risk. The high cost of property means that building a diverse portfolio is a difficult aim for most investors. Therefore, they become reliant on a small number of assets for their income.

By contrast, a REIT has a vast amount of assets. Often, they operate in different segments, such as leisure, retail and office properties. And, many REITs have exposure to different regions that further reduces their overall risk. This high level of diversification could mean that you enjoy a more robust income return that is less volatile over the long run.

Capital growth possibilities

Since many REITs offer generous passive incomes while interest rates are low, they could become more popular in future. This could catalyse their share prices and lead to capital growth for investors.

With the economic outlook being challenging at the present time, many REITs may also trade on low valuations. This may further improve their return prospects, and allow investors to benefit from their growth opportunities as well as their generous income return. As such, now could be the right time to buy REITs and hold them for the long run.

More reading

• Top brokers name 3 ASX shares to buy today
• Is the Telstra (ASX:TLS) share price undervalued?
• The ResApp (ASX:RAP) share price is soaring 10% today. Here’s why.
• 3 reasons you should buy Amazon stock before there’s a coronavirus vaccine
• Here’s why the Clover (ASX:CLV) share price crashed 20% lower today

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

The post Lazy landlords: why I’d buy REITs to make a passive income appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2HmbBZT

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted the price target on this payments company’s shares to $115. The broker notes that Afterpay has formed a partnership with Westpac Banking Corp (ASX: WBC) that will see it offer savings accounts and cash flow tools. It feels this will give Afterpay valuable data and opportunities to innovate further in the industry. Outside this, it estimates that Afterpay ended the first quarter with 11.3 million active customers and is forecasting strong growth during the important second quarter. I agree with Morgan Stanley and would be a long-term buyer of its shares.

CSL Limited (ASX: CSL)

A note out of UBS reveals that its analysts have retained their buy rating and $346.00 price target on this biotherapeutics company’s shares. This follows the company’s research and development update on Tuesday. It appears pleased with the products under development and expects it to support growth in the coming years. And while it notes that its shares are trading at a premium to its peers, it points out that this premium is still lower than its five-year average. I think UBS is spot on and CSL would be a quality option for investors.

Woolworths Group Ltd (ASX: WOW)

Analysts at Citi have upgraded this retail conglomerate’s shares to a buy rating with an improved price target of $44.50. The broker made the move after it increased its earnings estimates to reflect favourable trading conditions in the grocery market and positive earnings momentum. Citi is forecasting double-digit comparable store sales for Woolworths in the first quarter. While I would buy one of its rivals ahead of it, I still think Woolworths is a top option.

More reading

• Here’s how much Coles (ASX:COL) and Woolworths (ASX:WOW) are benefiting from COVID-19
• ASX 200 flat: Big four banks push higher, Afterpay drops, Megaport sinks 10%
• 3 ASX shares I’d buy for summer 2021
• 5 things to watch on the ASX 200 on Wednesday
• CSL (ASX:CSL) share price and 2 other ASX stocks among latest broker “buy” ideas

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

The post Top brokers name 3 ASX shares to buy today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3je5qnD

Is the Telstra Corporation Ltd (ASX: TLS) share price undervalued today?

At the time of writing, Telstra shares are going for $2.80. Last week’s bump which pushed the Telstra share price to $2.89 has evidently faded. At $2.80, Telstra shares are back near their 52-week low of $2.76 that the company made just 2 weeks ago. It’s been something of a fall from grace for the ASX telco.

Back in July and August, Telstra was trading around the $3.50 mark, not to mention the $3.94 52-week high we saw back in January. The levels we see today are even below the depths that Telstra shares saw during the March share market crash.

So are Telstra shares undervalued today? Or is the market onto something here?

Why Telstra shares have been tanking

We can trace Telstra’s share price decline back to the company’s FY2020 earnings report that was released back in mid-August. Although Telstra reported an earnings drop of 9.7% and income fell by 5.9%, the market was largely expecting those kinds of numbers. What really riled investors though, was the company’s guidance for FY2021. Telstra has a ‘payout ratio policy’ of 70-90% of earnings when it comes to its cherished dividend. In 2019 and 2020, Telstra has paid out 16 cents per share, fully franked, in dividends to investors. However, Telstra also told investors that it expects a ~$400 million hit to earnings in FY2021 as a result of the pandemic. If that eventuated, it would threaten the 16 cents per share dividend, as that would no longer comfortably fall into 70-90% of earnings.

Investors don’t normally buy Telstra shares for anything other than hefty dividend income. So it’s understandable why the Telstra share price fell 18% over the 2 months after the earnings report was released.

However, when Telstra recently held its annual general meeting, the company changed its tune somewhat. In acknowledging the importance of its dividend to shareholders, the Telstra chair told investors that the company was “prepared to temporarily exceed our capital management framework principle of paying an ordinary dividend of 70- 90% of underlying earnings to maintain a 16c dividend”. That sounds like a virtual guarantee that shareholders will be receiving 16 cents per share again in FY2021 to me.

Happy days… you would think anyway. Telstra shares indeed popped on this news (around 4%). But since then, the company has slid back to the levels we see today.

Is Telstra undervalued right now?

On current pricing, a 16 cents per share dividend gives Telstra both a trailing and forward dividend yield of 5.71%. That’s a whopping 8.16% grossed-up with Telstra’s full franking credits. Even if the Telstra share price goes nowhere over the next few years, that’s a pretty decent return just from dividends and franking credits (provided there are no dividend cuts of course). But given what the company has said about its dividend, I don’t think this is likely.

Further, I happen to think there are a few avenues for Telstra to increase its earnings outside the traditional fixed-line and mobile spheres over the next few years. Apple Inc. (NASDAQ: AAPL) has just released a new iPhone range – the first offering 5G connectivity. Since Telstra on-sells new phones, this is good news in my view. Telstra is also investing heavily in its own 5G network, which I think has a good chance of offering the best coverage in Australia. This could add to earnings growth down the road.

Foolish takeaway

Overall, I do think the Telstra share price is undervalued today. The company seems to be priced for a low-growth future filled with dividend cuts, which I don’t think will come to pass. Thus, I would consider buying Telstra as a value share today, especially if an 8% dividend catches your eye.

More reading

• How to tell if an ASX share is a bargain or a dog
• 3 high quality blue chip ASX shares to buy now
• Here’s why I think these 2 ASX shares are bargain buys right now
• Is Apple’s iPhone 12 good news for the Telstra (ASX:TLS) share price?
• 3 small cap ASX dividend giants

Motley Fool contributer Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Telstra (ASX:TLS) share price undervalued? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34gDgEr

The ResApp Health Ltd (ASX: RAP) share price has surged today following a positive announcement on a partnership agreement.

At the time of writing, shares in the digital health company are 10% higher at 11 cents. This compares to the All Ordinaries Index (ASX: XAO) which is flat at 6,399 points.

New partnership

ResApp advised it has signed a 12-month marketing agreement with Australia’s largest consumer healthcare network, HealthEngine. The new partnership will see HealthEngine integrate its booking network into ResApp’s mobile medical application, SleepCheck.

The easy to use, direct-to-consumer mobile application assesses a person’s risk of obstructive sleep apnoea by analysing breathing and snoring. It requires no accessories or hardware other than the user’s smartphone to make an assessment.

If SleepCheck identifies a person is at risk of obstructive sleep apnoea, the application will direct them to see a doctor. HealthEngine’s integration helps patients find and connect with healthcare service providers through a dedicated landing page.

Under the agreement, ResApp will retain all revenues generated from the app download. In addition, for every new patient referred through the Sleep Check application, ResApp will received a portion of the revenue.

Both companies did not state any forecasted earnings as the partnership is in its early stages. However, ResApp was confident of a significant consumer uptake in SleepCheck, unlocking a new revenue stream.

The new partnership has the flexibility to be extended beyond the 12-month agreement.

What did management say?

ResApp CEO and managing director Tony Keating welcomed the collaboration, saying:

This partnership is a tremendous achievement for ResApp and highlights SleepCheck’s potential in the Australian market. The agreement with HealthEngine provides us with access to a trusted and reliable consumer healthcare network, which will further improve our offering by allowing users to immediately progress the treatment journey.

This agreement is further evidence of ResApp’s ability to attract large, industry leading partners that it can leverage to drive growth well into the future. The company has a number of partnerships pending, which will provide it with a solid foundation to scale.

ResApp share price summary

Despite the uplift in its share price today, ResApp shares have been on a downhill trend for a rolling 52 weeks. Reaching a low of 5.5 cents in March, the ResApp share price has somewhat recovered, up 100%. But the numbers are still a long way off its share price high of 41.5 cents achieved this time last year.

More reading

• WISR (ASX:WZR) share price jumps higher on strong trading update
• Why did the Forbidden Foods (ASX:FFF) share price tumble 5% today?
• ASX 200 Weekly Wrap: Promises of easy money push ASX 200 to post-crash high
• Why the Nickel Mines (ASX:NIC) share price is up 16% today
• Why the MyFiziq (ASX:MYQ) share price is falling today

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

The post The ResApp (ASX:RAP) share price is soaring 10% today. Here’s why. appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31q5PgT