The Access Innovation Holdings Ltd (ASX: AIM) aka Ai-Media share price is surging higher today after the company announced two new acquisitions in the United States. The company also released a full investor briefing on the news. 

At the time of writing, the Ai-Media share price is trading up 3.59% at $1.01.

Ai-Media provides live and recorded captioning, transcription and translation services. Its technology combines artificial intelligence (AI) and human expertise to deliver speech-to-text as accurately as possible.

Right now, Ai-Media is the biggest captioning provider in the Australian market and has a growing international presence, capturing more than 1 million minutes of live and recorded media every month.

Details of the acquisitions

The company's new acquisitions – Caption IT and CaptionAccess – are strategic within the US market.

Caption IT is based in Wisconsin and offers real-time, offline and post-production captioning, transcription and translation services. The company generates most of it's revenue from corporate customers. White label product sold via resellers in the technology space are a large part of this revenue. 

CaptionAccess is based in Illinois and is owned and managed by people who are deaf and hard of hearing. It provides communication services to the government, corporate and education sectors. Revenue comes mainly from enterprise customers in these sectors and particularly in the university space, where it has 23 clients.

Key terms

The key terms of the acquisition agreements include the following points:

• Total purchase consideration for the acquisitions, on a cash and debt free basis, is US$1.9 million comprising approximately US$1.6 million in cash and US$0.3 million in AIM shares with the number of AIM shares issued to be determined based on the 30-day VWAP to 11 December 2020 (consideration shares).
• The consideration shares will be subject to the three-year escrow agreement applying to board and senior management, as set out in the Ai-Media prospectus.
• 10% of the total purchase consideration will be retained in escrow for a 12-month period to cover any breaches of representations and warranties. There are no earnout amounts associated with the acquisitions.
• The acquisitions are expected to be completed on 4 January 2021 and will be funded by existing cash reserves.

Rationale behind the acquisitions

The rational behind this move was to grow revenue and expand the company's presence in North America.  Together, the acquisitions represent complementary additions to Ai-Media and help to achieve a number of goals for the company. Caption IT has a "top tier" corporate customer base and CaptionAccess is well positioned to service the education space. 

These two companies will directly help Ai-Media to expand its high-quality live captioning services in the US market. According to Ai-Media, the US is a fast growing market for these services and one that is directly in their target zone. The acquisitions are consistent with strategic goals to pursue consolidation opportunities that can complement the existing technology platform.

Ai-Media technology will help to leverage the already strong growth recorded by these new companies.

Earlier this year, Ai-Media completed another acquisition of Alternative Communication Services (ASC) to further enhance the US footprint. These latest acquisitions continue the expansion efforts.

Caption IT and CaptionAccess are expected to produce revenue of around US$2.2 million this calendar year. This is to be added to AI-Media's revenue for six months of FY21.

This revenue increase is incremental to the current revenue produced by Ai-Media, which will account for more than 95% of the total, even after this acquisition. It's complementary, but not majorly altering of the bottom line. AI-Media is expected to report around A$43.8 million in FY21. As this is incremental revenue, it's not yet known what kind of long term affect it might have on the AI-Media share price. 

Management commentary

Ai-Media CEO and co-founder Tony Abrahams said North America now made up around 50% of the company's total revenue.

Both CaptionAccess and Caption IT have been built on foundations of high-quality service delivery to loyal enterprise customers with values and cultures that are strongly aligned with Ai-Media.

Following our successful integration of ACS in North America in recent months, I am excited that Ai-Media can provide the infrastructure and scalable technology platform to enable these great businesses to continue to accelerate their growth in the years ahead.

We continue to see strong demand for Ai-Media's services across all regions, in particular in live enterprise where COVID-19 restrictions have accelerated the adoption of video as a key communication tool for business and the education sector.

Caption IT Founder and CEO Maureen DeRuyter added:

Following years of strong growth with top tier enterprise customers, we knew we needed to partner with a great technology business to provide the scale to continue to grow. Ai-Media's demonstrated success with the recent ACS acquisition has given us enormous confidence to further enhance the excellence in service and quality that Caption IT is known for.

CaptionAccess founder and CEO Bill Graham said:

As a proud deaf business owner with Disability Owned Business Enterprise (DOBE) Certification, it was important for me to partner with a business that shares our community roots and our values, as well as focusing on delivering the highest quality services to our customers who rely on us to participate equally in education and at work.

Ai-Media share price

The Ai-Media share price has been on a downward slope since listing on the ASX in September this year. Shares listed at $1.23 and have slipped as low as $0.95 before rallying today. 

The post AI-Media (ASX:AIM) share price is up 3% on US acquisitions update appeared first on The Motley Fool Australia.

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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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

So, what does this mean for investors?

Buying shares in a holding company means that you are essentially accessing a number of other companies. This gives you exposure to multiple securities through a single purchase.

Exchange-traded funds (ETFs) offer a similar style of investing. Just as an ETF holds multiple shares inside a fund, a holding company holds other securities.

Today, I'm looking at two well-known companies on the ASX that are both considered to be 'holding companies'. Although they have slightly different investment strategies, both are interesting case studies.

Premier Investments Limited (ASX: PMV)

According to the company, Premier Investments was created for the following reason:

The company was established as an investment vehicle to maximise growth in capital returns to shareholders. This is achieved through the acquisition of controlling or strategic shareholdings in premier Australian companies. A particular focus is given to retailing, importing and distributing.

You can see here that Premier was entirely created to invest in other companies. This is usually the main strategy of a holding company. 

What does Premier Investments own?

Premier Investments wholly owns the retail conglomerate The Just Group. If you aren't familiar with the name, you might recognise the brands. The Just Group owns and operates the following popular retail brands:

• Smiggle
• Peter Alexander 
• Just Jeans
• Jay Jays
• Portmans
• Jacqui E
• Dotti

Premier Investments obtained a controlling interest in the shares of Just Group Limited in 2008. This came after an off-market takeover offer, which saw Premier purchase 100% of the shares. Just Group Limited was removed from the ASX after this occurred.

Additionally, Premier Investments owns 28.06% of Breville Group Limited, another well-known Australian brand. Breville Group is a leading provider of small electrical appliances. Breville was founded in 1932 (during the Great Depression) and was originally known as 'Breville Radio'!

Breville's brands include:

• Breville
• Kambrook
• Sage by Heston Blumenthal
• Distribution of Ronson and Philips products.

The Premier Investments share price

The Premier Investments share price is up more than 20% in 2020. However, during March this year, it crashed hard as a result of COVID. The share price fell from $21.61 down to as low as $8.07, representing a catastrophic drop of 62%. 

Premier has since recovered strongly from this initial setback – not only did it recover lost ground, but exceeded it. The company created new all-time highs in October this year and has managed to stay above those levels since then. In fact, from the lows in March of $8.07 to today's price of $22.76, Premier has risen more than 170%!

One thing to note is that Premier Investments delivered strong financial results this year, in spite of COVID. This has helped to move the share price in a positive direction. 

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

According to the company, Soul Pattinson (or 'Soul Patts') was created for the following reason:

WHSP is a significant investment house with a portfolio encompassing many industries. These include its traditional field of pharmaceuticals, as well as mining, building materials, property investment, telecommunications, financial services and other equity investments.

Soul Patts certainly has a much broader scope than Premier, but the concept is very similar – it's also a company designed to invest in other companies.

What does Soul Pattinson own?

Soul Pattinson owns a wide range of investments, many of which are ASX listed companies:

• TPG Telecom Ltd (ASX: TPG) 
  • TPG is an Australian telecom provider, Soul Patts holds 25.3%.

• Brickworks Limited (ASX: BKW)
  • Brickworks is group of companies in the construction space, Soul Patts owns 43.9%.

• New Hope Corporation Limited (ASX: NHC)
  • New Hope is a diversified energy company, Soul Patts owns 50%.

• Australian Pharmaceutical Industries Ltd (ASX: API)
  • This company is a leader in health and beauty, Soul Patts holds 19.3%.

• Bki Investment Co Ltd (ASX: BKI)
  • BKI is a listed investment company, Soul Patts owns 8.6%.

• Round Oak Minerals (private company)
  • This is a mining and exploration company and is wholly owned (100%) by Soul Patts

• Milton Corporation Limited (ASX: MLT)
  • This is another listed investment company, of which Soul Patts owns 3.3%.

• Apex Healthcare Berhad (KLSE: AHEALTH)
  • Apex is a leading healthcare group based in Asia. Soul Patts owns 30.3%.

• Palla Pharma Ltd (ASX: PAL)
  • A manufacturer of narcotic raw material, of which Soul Patts owns 19.9%.

• Ampcontrol Pty Limited (private company)
  • An international electrical supplier, Soul Patts owns 43.3%.

• Clover Corporation Limited (ASX: CLV)
  • Clover is a "bioactives" provider in the health space. Soul Patts owns 22.6%.

• Pitt Capital Partners (private company)
  • Pitt is an independent corporate advisory firm, wholly owned (100%) by Soul Patts.

The Soul Pattinson share price

The Soul Pattinson share price is up more than 35% in 2020. The market has largely become unpredictable this year due to the impact of the COVID pandemic, however, the Soul Patts share price is somewhat hedged given the company's broad portfolio. Additionally, three of Soul Pattinson's holdings are private and largely unaffected by the stock market.

Comparing Premier Investments and Soul Pattinson

In terms of their structure as holding companies, the main difference between Premier and Soul Patts is the type of shares they hold. Additionally, their investment strategies vary.

All of Premiers holdings are completely private – that is, they don't trade on a public exchange. The company also has a strong retail focus with The Just Group and Breville.

The majority of Soul Pattinson's holdings are in publicly listed companies from a broad range of sectors. Soul Pattinson has a similar structure to Berkshire Hathaway, Warren Buffett's company, which also has broad holdings, many in publicly listed companies. 

Foolish takeaway

A holding company is an interesting concept and one which both Premier and Soul Patts have embraced. Each style of holding has a certain agenda. Therefore, it's worth doing some deeper research to see what might align with your investment strategy. 

The post What is a holding company? appeared first on The Motley Fool Australia.

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glennleese owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Premier Investments Limited, and Washington H. Soul Pattinson and Company 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.

In early trade, PayGroup shares rose 3.49% to 60 cents, before pulling back and losing ground to be in the red by lunch. The company's current market capitalisation is close to $43 million.

About PayGroup

PayGroup is a specialist provider of payroll and human capital management solutions, and is a holding company for brands such as PayAsia, TalentOz, and Astute One.

PayAsia provides software-with-a-service (SwaS) and payroll solutions. It enhances its offer to the market by using a cloud-based human capital management platform called TalentOz. Clients are multinational.

Astute One delivers workforce management solutions for complex businesses, with clients predominantly based in Australia and New Zealand.

PayGroup itself now has staff in 11 countries and services almost 1,000 clients.

Financial reports

In today's report, PayGroup reported revenue for the first half of FY21 of $6.8 million, up a staggering 100% on the second half of FY20. The company stated that this growth was largely driven by organic growth and acquisitions.

PayGroup also reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.6 million, compared to a loss of $1 million in the prior corresponding period. 

Net profit after tax also represents a healthy turnaround for the company, going from a loss of $1.4 million in the prior corresponding period to a profit of $444,000.

Conditions and growth

Although PayGroup noted strong revenue growth and cost efficiencies as key drivers for the financial outcomes, other factors were also at play. It highlighted that JobKeeper also helped ease the burden in Australia, and other government incentives were noted to help in the Asia market.

The company also noted that during the time of the coronavirus pandemic, it continued to drive strong investment in both technology and staff. 

Following a successful capital raise of $3.5 million in September 2020, PayGroup now has a cash balance of $5.2 million. The goal is to use these funds for further company expansion. 

PayGroup has said that the outlook for the second half of FY21 is strong. It is currently completing another acquisition of Payroll HQ, with plans to capitalise on the strongly re-bounding Asia Pacific economies following COVID-19. 

What did management have to say?

In the announcement, PayGroup's managing director Mark Samlal commented on the company's performance:

We have now transitioned our business to become a full-service provider of Human Capital Management and payroll services. This is opening up a significant number of new customer opportunities.

I am very pleased with the financial performance of PayGroup this half as we have reported a profitable period, supported by a strong and growing base of contract revenues. We expect continued growth in contracted sales and earnings as we see the full contribution from our acquisitions and the benefits from our enlarged customer base and addressable markets.

The PayGroup share price

The PayGroup share price recovered well following the March market crash, rebounding from lows of 43 cents to heights of 90 cents in just a few months. However, in the current financial year, the share price has been less than favourable for investors, falling more than 30% in less than 6 months.

Today, PayGroup shares rose immediately on the opening bell, however failed to keep their footing throughout morning trade. The PayGroup share price is currently trading at 58 cents, down 0.86%.

The post PayGroup (ASX:PYG) share price rocky following half year results appeared first on The Motley Fool Australia.

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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.

The Osteopore Ltd (ASX: OSX) share price is edging higher today on news of a distribution deal. Osteopore notified the ASX just after market open that it has landed a deal to begin distributing its products into Germany and Austria. The Osteopore share price lifted by as much as 3.6% in earlier trading, however, has since partially retreated. At the time of writing, the Osteopore share price is trading 2.63% higher at 58.5 cents.

What's driving the Osteopore share price?

The Osteopore share price is marching higher after the company advised it has signed an exclusive distribution agreement. The deal was struck with MTG Medizintechnik Göhl (MTG) to promote and sell Osteopore products to German and Austrian markets.

Under the terms of the agreement, MTG will market Osteopore's range of products for craniofacial procedures and implants. Osteoplug, Osteoplug-C and Osteomesh products already have European regulatory approval so MTG can immediately commence with marketing the products. MTG has indicated that immediate discussions with hospitals and doctors are on the table, with no red tape standing in the way.

The distribution deal does not include minimum sales KPIs (key performance indicators) and therefore the company has not provided any guidance on sales forcasts. It's a 2-year agreement with standard termination provisions. Osteopore has stated that it will work closely with MTG to drive successful outcomes. Ultimately, this includes helping MTG to provide sales training and support sales reps on an ongoing basis. The goal is to promote Osteopore products to surgeons across Germany and Austria. Additionally, MTG already has a national sales market and is recognised for its expertise in the promotion of current and previous Osteopore products. 

Osteopore as a brand has previously been exposed to the German market in the research and clinical development fields. Additional partnerships were developed in the past as a result of the Osteopore technology. Of most note was the company's first paediatric, patient-specific skull reconstruction in a 11-year-old patient in 2008 at the Munich University Hospital.

About Osteopore

Osteopore is an Australian medical services and biotechnology company. Although based in Australia, most of the company's research and development (R&D) is actually conducted out of Singapore. Osteopore's manufacturing also takes place in Singapore.

The company specialises in the manufacture of innovative regenerative implants on a commercial scale. It combines 'biomimetic tissue' science with proprietary 3D printing and materials technology. Using these processes, Osteopore produces medical implants designed for both tissue and bone reconstruction and restoration.

Known as 'bioresorbable implants', these products provide a 'scaffold' for bone regeneration, dissolving over time to leave only natural bone tissue behind. Osteopore states that it manufactures these implants to address "unmet clinical needs and improve patient outcomes". 

What did management say?

Osteopore CEO, Khoon Seng Goh, made this statement:

We are pleased that after over 12 years of clinical cooperation with German surgeons and researchers, we can now provide Osteopore products for wider use in German hospitals and treat German patients.

More on the Osteopore share price

Osteopore listed on the ASX in September 2019 at a price of 62.5 cents. Today, the Osteopore share price is trading at 58.5 cents.

The last 12 months or so have been highly volatile for Osteopore shares. At its all-time high, the Osteopore share price rose to $1.49 late last year before plummeting to a 52-week low of 28 cents in March this year. This low did, however, coincide with the broader market crash associated with the onset of the coronavirus pandemic. 

Investors have been bullish on the company's shares in November, with the Osteopore share price rising a little more than 10% so far this month including today's gains. It will be interesting to watch how the company's sales and share price perform as this latest distribution deal kicks into play.

The post Osteopore (ASX:OSX) share price moving higher on distribution deal appeared first on The Motley Fool Australia.

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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.

The Polynovo Ltd (ASX: PNV) share price has lifted higher today on news of an international expansion. Polynovo advised the ASX it was expanding operations into multiple new countries with its ongoing partner, PolyMedics Innovations (PMI). The Polynovo share price surged up more than 4% in earlier trading before retreating to $3.02, up 2.7%, at the time of writing.

The company develops medical devices internationally, mainly to countries including Australia, New Zealand, the United States and Europe. Polynovo's primary product is the NovoSorb biodegradable temporising matrix (BTM) used to close surgical wounds. The company also has a number of other products under development and in use. 

About the expansion

Through partnership with PolyMedics, Polynovo will expand into new countries in Europe including Belgium, the Netherlands, Luxemburg and Sweden.

The existing alliance with PolyMedics is based out of Germany and has helped Polynovo reach markets such as Germany, Switzerland and Austria. PolyMedics will boost its sales teams to extend its existing service into the new regions.

What did management say?

PolyNovo managing director Paul Brennan welcomed the expansion, saying:

We are very pleased to extend our partnership with PMI. They are an excellent sales organisation with very good relationships with surgeons not only in DACH (Germany, Austria, Switzerland) but also in Sweden, Belgium and the Netherlands.

PolyMedics CEO Christian Planck added:

Our customers in the DACH region have quickly become believers in NovoSorb BTM and we managed to capture a significant market share this year. Therefore, our team is excited about the possibility of bringing NovoSorb BTM to even more customers and patients in these additional four European markets.

This geographical expansion marks an important milestone in our plan to become a leading provider of innovative burn and wound care solutions in Europe.

The Polynovo share price

Overall this year, the Polynovo share price is up more than 64% and has almost fully recovered from the COVID-19 crash in March. Today's climb to $3.05 sees it closing in on the all-time high price of $3.28.

The Polynovo share price has been bullish twice in the past 2 weeks, surging up 6% only a few days ago as the company announced FDA approval on a new clinical trial.

That positive news drove the share out of its 6-month range of between $2.10 and $2.77. Today's expansion news has added to the momentum, with the Polynovo share price now seeing overall gains of 23% in November alone.

The post The Polynovo (ASX:PNV) share price is climbing higher today. Here's why. appeared first on The Motley Fool Australia.

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Glenn Leese has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. 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.

Below, we take a closer look at two ASX shares making new all-time highs today.

REA Group Limited (ASX: REA)

REA Group is a multinational digital advertising business specialising in real estate. The company runs realestate.com.au, realcommercial.com.au and flatmates.com.au. Between them, these three websites operate Australia's top residential, commercial and share property advertising businesses.

In addition to these well-known brands, the company owns an Australian 'co-working' space website called spacely.com.au.

Overseas, the company's Asian operations in the property space are extensive and stretch across Malaysia, Hong Kong, Indonesia, Singapore, China and Thailand. Not only does the REA Group own and operate this large portfolio, but it also owns significant share portfolios in related companies in the United States and India.

The REA Group share price has been strong in 2020, rising more than 34%. In fact, since the March lows, it has made gains of 126%. Today, the intraday REA Group share price reached as high as $143.99, exceeding its previous high of $142.47 to secure a new record this morning.

However, the REA Group share price has since pulled back slightly and is up by 1.15% to $141 per share at the time of writing. 

Only yesterday the REA Group share price dipped lower by 1.31% following its AGM. It seems investors may have a renewed sense of confidence today, pushing the price to new heights.

Chalice Gold Mines Limited (ASX: CHN)

Another ASX share making all-time highs today is Chalice Gold Mines. Chalice Gold Mines operates a mineral exploration company, exploring for gold, copper, cobalt, palladium, and nickel deposits. One of its main properties is the Julimar Nickel-Copper-Platinum group element project located in the Avon Region, Western Australia. Another major project is the Pyramid Hill gold project located in the Bendigo Region, Victoria. 

Chalice Gold shares went for a massive 17%+ run in morning trade after new results released today showed positive discoveries for the company's Julimar Nickel-Copper-Platinum project. Following a close of $3.30 yesterday, the Chalice Gold share price was driven as high as $3.88 today. Chalice Gold's previous all-time high was $3.55.

Overall this year, the Chalice Gold Mines share price is up a staggering 1,568%. The company now holds a market cap of over $1 billion.

The post 2 ASX shares making all-time highs today appeared first on The Motley Fool Australia.

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Motley Fool contributor Glenn Leese has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA 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.

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.

The post Here's why the Auswide Bank (ASX:ABA) share price is rising today appeared first on The Motley Fool Australia.

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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.

Incitec Pivot manufactures and distributes industrial explosives, chemicals and fertilisers to the agriculture and mining industries.

What were the results?

The company reported revenue of $3.942 billion for FY20, up around 1% higher than the prior year. Revenue was $3.918 billion in FY19. 

Incitec Pivot recorded an earnings before interest, tax, depreciation and amortisation (EBITDA) of $375 million for FY20, up 23% on the prior year. This result excludes individually material items (IMI). These were worth an additional $88 million separately. The company attributed 94% of EBITDA to the explosives business, with 6% attributable to the fertiliser business.

Operating cash flow is up 31% on the previous year at $545 million. Net profit after tax is $188 million, an increase of 23% on previous year. Debt has been reduced, and the FY20 ratio (net debt/EBITDA) is reported to be 1.4x, a improvement from the FY19 result of 2.8x.

Incitec Pivot described its financial results as "resilient", underpinned by technology and manufacturing performance. 

The company advised its brand, Dyno Nobel, was delivering explosive products extensively. In addition it had a competitive advantage with "the best premium technology" in the market today.

Incitec also reported that the technology was ideally suited for growth markets/sectors. Furthermore, company assets were strategically located close to quality customers.

Financial framework

Incitec Pivot has listed three key areas of focus within its 'financial framework'. These include focus on balance sheet strength, free cash flow generation and targeting higher returns.

A focus on the balance sheet strength saw a reduction and maintenance of lower net debt through improved free cash flow. It also noted a commitment to maintaining an investment grade credit profile (S&P: FY19 BBB Stable, FY20 BBB Stable). It also noted that it was looking to simplify some hedging structures by 2022 for risk management purposes.

On the free cash flow side of things, manufacturing excellence was a pursuit. This was to drive plant reliability and capital spend efficiency.

A target here is higher returns. Capital light projects and those that returned cash faster drew a bias. The company stated that the technology progress it had made in Fy20 had positioned its business well for the future.

Quality customers and markets

The explosives business has diversified category exposure. Incitec said the company had exposure to some of the best mining markets in the world. Base and precious metals, quarry and construction and coal are on the list.

Incitec Pivot clients are some of the biggest names in the mining industry. These include BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG).

Future focus

Incitec Pivot said it was strongly focussed on the future, along with a commitment to safety through Zero Harm goals and projects. 

The company flagged potential significant upside in earnings over the next 3-5 years. This was outlined through a 5-step process.

1. Resilient end markets: Resilient demand for product, despite COVID-19 interruptions
2. Response plan: $60 million of EBIT uplift per annum expected by Fy22 as a result of cost cutting initiatives
3. Explosives growth: Targeting technology-driven earnings growth of 10% by FY22
4. Manufacturing excellence: The company has identified opportunities valued at $40 million to $50 million per annum that could potentially be achieved by FY22
5. Fertiliser recovery: Noting a large distribution footprint and flagging a possible commodity price recovery, the company has recorded a 14% growth in domestic fertiliser sales volume. Additionally, it had flagged positive outlooks for future years.

Incitec Pivot share price

The Incitec Pivot share price has ranged between $1.84 and $2.23 for most of 2020, and has a long way to go to recover to pre-COVID levels. Toward the end of 2019, the Incitec Pivot share price reached heights of $3.68.

The post The Incitec Pivot (ASX:IPL) share price is lower today on full year results appeared first on The Motley Fool Australia.

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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.

Last night's overseas trading sessions saw multiple indices and futures move higher and lower simultaneously. Fortunately, they are presenting a green flag for the ASX this morning, although the same can't be said for other markets.

The volatile session saw two major markets move higher overnight as investor confidence began to return to the markets. Although the new US President is not yet official, the initial results seem to have brought a level of positivity with them. Other markets, such as commodities, did not fare so well.

US markets – INX, IXIC & DJI

Finance news in the United States paints a mixed picture.

The S&P 500 Index (INDEXSP: .INX) opened 1.15% higher and rose as much as 3.9% in intraday trade, before retracing a little toward the end of the session. The overall rise during the day's session stood at 1.2%, or around 42 points. 

The NASDAQ Composite Index (INDEXNASDAQ: .IXIC) also opened higher at around 1.5%, however spent the session falling. The result was a lower close, making a loss of 1.34% for the day. Initial optimism seemed to turn late in the session.

Lastly, the Dow Jones Industrial Average (INDEXDJX: .DJI) behaved a little differently. This particular index performed very well in the last day of trade last week, rising as much as 5.3% in a single session. Last night was a different story however, with the DJI falling around 1% during trade.

Australian market – ASX

Locally in finance news, we could see a rise in the market this morning, following the positive futures session last night.

While the S&P/ASX 200 Index (ASX: XJO) closed at 6,298 points yesterday in Monday's trade, futures indicate a higher open today. Contracts such as the Australian 200 AUD contract (OANDA: AU200AUD) rose as much as 5.5% points in intraday trade. The futures settled a little bit toward closing bell, however still resulted in a 3.77% trading day.

Overall, ASX 200 futures were up more than 230 points. This is the largest daily gain on ASX 200 futures since April this year and is a very positive sign for our local market. Although not an exact science, futures leading the open of the ASX can be an indication that we could see a rise on open today.

Cryptocurrency and commodity markets

In other finance news, cryptocurrency and commodity markets have not fared as well as the stock markets.

Bitcoin (BTC) and Ethereum (ETH) fell almost 1% and 1.8%, respectively. These 2 digital currencies are largest in value. Bitcoin holds a market capitalisation of US$284 billion and Ethereum holds US$50 billion. 

In traditional commodities, Gold (XAU) and Silver (XAG) fell heavily during the session. Gold fell 4.5% and Silver is down as much as 6% in the single session. 

Finance news takeaway

The US presidential election has been the race that has all but stopped the world. As results now look to favour a Democratic win, the financial markets have begun to react. Although the election process is not yet officially over, it seems some markets have already picked a direction to run in. 

The post Markets volatile on US presidential election results appeared first on The Motley Fool Australia.

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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.

The Crown Resorts Ltd (ASX: CWN) share price is up by 3.06% so far today, after the gaming titan announced it is looking to reopen its Melbourne property.

Crown Melbourne has received approved to reopen with a raft of restrictions in place, which mean that the property can operate in a limited capacity. 

What does the new gaming operation look like?

The casino operations are expected to commence on Thursday 12 November with a few key changes in place. The changes are mainly to comply with COVID-19 regulations and protect the health and safety of patrons. Social distancing is a key focus, as is density. The Victorian Government has determined these restrictions to be appropriate as the state looks to reopen further this week.

The operational restrictions include:

• Electronic gaming operations limited to ten designated VIP areas, with each area having a capacity of 10 patrons
• No smoking is permitted
• Physical distancing has been put in place, with every second gaming machine and electronic table game being deactivated
• Patrons only allowed to game for a maximum of 90 mins per day
• COVID "marshals" will be in place on the floor to monitor the safety
• Hygiene protocols will be enhanced across the board.

As mentioned, this reopening is planned for Thursday this week. 

Crown's CEO Ken Barton had this to say:

We have been working for some time with the Victorian Government and health authorities to determine how we safety re-open Crown Melbourne and have developed extensive physical distancing and hygiene measures to allow re-opening in a safe manner. We are pleased to be able to commence the process of welcoming back our employees and customers to Crown Melbourne.

What about retail operations?

The Victorian Government allowed the reopening of retail outlets late last month. However, for Crown Melbourne this looked very different to normal, with only a select few retail outlets permitted to reopen on the property from 28 October. Food and beverage began to reopen from 2 November (last week). 

Additionally, accommodation including Crown Towers is looking to reopen from today (9 November).

Sydney not looking so bright

Last week, Crown was in the news after being told it was "unfit" to run a new $2.2 billion Sydney casino. The issues lie with its culture. In fact, a recent inquiry went so far as to say that Crown had 'fundamental problems' with this internal culture. 

Crown was called out and accused of doing business with people linked to crime. Additionally the regulators went on to say that the casino group had allowed money to be laundered at its Australian casinos. Crown dismissed these allegation initially as being unsubstantiated, however they could still cost the company its licence in Sydney.

Crown Sydney remains in limbo while inquiry commissioner Patricia Bergin awaits some suggestions from Crown about how these issues can be addressed. Patricia Bergin is expected to produce a formal report early next year with some recommendations. An uncertain time for Crown Sydney exists until then.

At the time of writing, the Crown share price is up more than 3% at $9.08 per share.

The post Crown (ASX:CWN) share price up as Melbourne casino set to reopen appeared first on The Motley Fool Australia.

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Motley Fool contributor glennleese has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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.

What does Actinogen Medical do?

Actinogen Medical is an ASX biotech company. It specialises in developing novel therapies of a range of conditions. These include neurological, psychiatric and metabolic diseases associated with chronically elevated cortisol. This is a metabolic disorder caused by overproduction of corticosteroid hormones by the adrenal cortex. Often it is associated with obesity and high blood pressure.

The lead compound currently being developed by Actinogen is called "Xanamem". This compound is a new type of therapy for Alzheimer's disease, Fragile X syndrome, schizophrenia and diabetes. According to the company, solutions to effectively address these conditions and the burdens for patients have not yet adequately been met. It is therefore focusing on the gap in this market.

Why are these patents important?

The two patents filed this week are to expand and extend the company's IP estate. 

The first patent filed requests protection for a method of improving cognition or treating cognitive decline in cognitively healthy subjects. Expansion of the IP estate is a key goal here.

The second patent filed provided protection to a commercial scale-up manufacturing process for Xanamem. This patent is the result of a collaborative effort between Actinogen Medical and a Switzerland-based contract development and manufacturing organisation.

Actinogen holds a large number of patents, either granted or pending. The new patents filed this week have the ability to extend patent life. Protection around Xanamem is now effective until 2040 at least. This gives the company a long runway of breathing room to continue its research and development.

In statement to the ASX today, Actinogen Medical CEO and managing director Dr Bill Ketelbey had this to say:

Strengthening our IP portfolio and extending the patent life of protection over Xanamem is aligned with our broader commercialisation strategy for Xanamem. The potential to treat cognitively healthy subjects, a population in which XanaHES demonstrated clear efficacy results, as well as treat those at risk of cognitive impairment, is a significant medical and commercial opportunity. Equally, the patented and optimised manufacturing methodology provides an efficient and commercially viable process which provides a substantial new barrier to competition. Actinogen remains focused on maintaining and extending the protection of Xanamem to maximise its commercial potential.

Foolish takeaway

The Actinogen Medical share price opened 4.5% higher on this positive news today. However, overall this year the Actinogen Medical share price is down more than 30%. 

The post Actinogen Medical (ASX:ACW) share price jumps on patent news appeared first on The Motley Fool Australia.

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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.

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.

The post Why the Downer EDI (ASX:DOW) share price has dropped today appeared first on The Motley Fool Australia.

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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.

Novatti Group Ltd (ASX: NOV) has today strengthened its Prepaid Visa card offer by announcing the cards are now supported by Google Pay and Samsung Pay.

The Novatti share price surged up after the company announced the partnership this morning.  The Novatti share price jumped up more than 10% in early morning trade but has since dropped 5.26% to 27 cents at the time of writing.

Novatti Group is a global leading digital banking and payments platform in the fintech sector. It offers fintech, billing and business automation platforms to make payments faster, more simple and secure. Its goal is to help companies thrive as the country shifts to a cashless economy in the future.

So what does the partnership mean?

With Novatti's Visa Prepaid cards supported by Google Pay and Samsung Pay, more customers will now be able to conduct transactions using the Google-Samsung combination. This will allow Novatti cards to be used more widely. It also enables Novatti clients to access global platforms for contactless, in-app and online payments using these Android devices. 

Why the move?

Novatti is looking to use this new partnership and support to drive value and validation. A number of well-known brands already use the company's solutions, including Telstra Corporation Ltd (ASX: TLS) and Hutchison Telecommunications (Aus) Ltd (ASX: HTA). Additionally, fintech brands such as Digipay, EziPin, CrediExpress, Splitpay, Moni Send and Transfer Bridge have partnered with Novatti for similar solutions.

Novatti made the move to bring added value to these existing clients, and also to validate and bring credibility to the brand. 

Google Pay and Samsung Pay are major players

Both Google Pay and Samsung Pay have rapidly expanded userbases in recent years. A 2018 Statistica report showed Google Pay serviced 39 million global users, with Samsung Pay at 51 million. Both providers have reported more than 100 million users each in 2020. Apple Pay is still a major rival, with 227 million users in 2020.

Still, partnership with Google Pay and Samsung Pay is a positive step forward for the Novatti brand.

Novatti share price

The Novatti share price may have lost some ground after the initial 10% spike in early morning trade today. However, it is up around 32% in 2020. Additionally, since the March lows following the coronavirus pandemic, the share price has risen 237%.  

The post Why the Novatti (ASX:NOV) share price jumped 10% on open today appeared first on The Motley Fool Australia.

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Motley Fool contributor Glenn Leese 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.

Livetiles Ltd (ASX: LVT) has today strengthened its partnership with Microsoft Corporation (NASDAQ: MSFT) with a new deal.

The Livetiles share price has rocketed up after the company shared details of the extended partnership in an announcement to the ASX this morning.  At the time of writing, the Livetiles share price has lifted 11.63% to 24 cents.

Livetiles is a global leader in intranet and workplace technology software. It specialises in creating solutions that drive digital transformation in modern workplaces. Additionally, the company operations expand across 30 countries and service more than 1,000 Enterprise clients.

So what's the deal?

In key points, Livetiles announced it had entered a "co-sell" agreement with Microsoft in the United States. The Microsoft US sales teams will be trained to sell Livetiles Reach and Livetiles Discover, and joint marketing is occurring between the two companies, targeting retail, manufacturing and healthcare industries.

In addition, Livetiles has secured its largest ever Livetiles Intranet deal with a US apparel retailer.

What is a co-sell agreement?

In this case, 'co-sell' means that Microsoft sales teams are being trained to sell Livetiles products alongside their own Microsoft products. Miscrosoft runs its sales teams as 'centres' known as small, medium and corporate. This will occur in the United States.

Livetiles mentioned a number of products in the announcement today including Directory, Quantum, Reach and Discover. The Livetiles Directory is a component of Livetiles Quantum offering.

The US based sales team are being asked to target companies that have a minimum of 1,000 staff. The idea behind this training and co-selling concept is to empower Microsoft sales staff to directly sell the Livetiles products. Alternatively, they also have the option to bring the Livetiles sales staff in on any potential business. Ultimately, they will work closely together to secure the client. It could be a very effective alliance.

What is a co-marketing agreement?

Livetiles and Microsoft will target the same potential customers and enterprise accounts. Again, these will focus on key industries such as retail, manufacturing and healthcare. It essentially means that both companies will continue with their own marketing efforts, but align their focus to the same potential clients for more effect.

Microsoft has identified 6 high priority 'vertical' markets in the United States. The above industries represent 3 of those 6. Those 3 jointly represent a potential 25,000 customers. The Livetiles average contract value at the end of FY20 stood at AUD$53,000. This means that securing a few more deals results in a lot more revenue for the tech provider.

Microsoft as a strategic partner

Commenting on the partnership, Livetiles CEO and co-founder Karl Redembacj said:

Our partnership with Microsoft has been instrumental in growing Livetiles Intranet into the leading industry provider in just a few short years.

Deepening Microsoft's understanding of how Livetiles Reach and Livetiles Directory helps companies better manage their workforces in a COVID-19 impacted world will be a catalyst for growth this financial year.

There is already a strong relationship between the 2 retailers in this space with more than 50% of Livetiles clients originating through the Microsoft partnership. This deal only strengthens that further. 

Record intranet deal

In another highlight, Livetiles announced it had secured a record intranet deal with a US apparel retailer.

Today's announcement did not name the apparel retailer. However, Livetiles president Daniel Diefendorf had this to say:

We're thrilled to have secured a record deal with a leading US company for Livetiles Reach and Livetiles Intranet. It validates our product diversification strategy and focus on large Enterprise as companies emerge from the initial impacts and changes that COVID-19 has made to our working lives.

The deal represents a multi-year, multi-million-dollar win for the company. It will help the major US apparel retailer with its COVID-19 re-opening strategy. The delivery will see the Livetiles products deployed to 40,000 employees and 15,000 seasonal workers across 3,100 stores in 27 countries.

Additionally, the announcement stated that Livetiles was selected as a provider because its solutions could be rapidly deployed. They could also be scaled across all required regions, languages and regulations.

The post Why the Livetiles (ASX:LVT) share price has rocketed up 11% today appeared first on The Motley Fool Australia.

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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. glennleese 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 Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of LIVETILES FPO and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia has recommended LIVETILES 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.

Ava Risk Group Ltd (ASX: AVA) announced on Monday a record breaking first quarter of FY21. The news has sent the Ava Risk Group share price up by 40.91% so far this week. Let's take a closer look at what the company reported.

What's moving the Ava share price?

Investors have been driving up the Ava Risk Group share price this week after the company reported a massive 73% surge in revenue compared to this time last year.

In a statement issued by the company on Monday this week, Ava CEO, Rob Broomfield, said: 

Our strong Q1 FY2021 results have demonstrated that our streamlined and highly scalable cost structure, along with our diverse customer base and revenue streams, are able to show continued growth even in times as disruptive as the current COVID-19 period.

High level results 

It's important to note that these results are currently 'unaudited', however some highlights from the reporting included:

• Sales revenue increased by 73%, compared to the same period last year, to $17 million.
• Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 522% compared to the same period last year and is sitting at $7.7 million.
• Cash as at the end of Q1 2020 increased by 50% from the previous quarter, with balances sitting at $11.6 million.

Both the company's services and technology divisions contributed to these results.

Services division

Ava's services division recorded revenue of $8.1 million and EBITDA of $1.6 million.

The company noted that the revenue had begun to normalise due to reduced restriction on air travel leading out of COVID-19. However, it also reported that this didn't overshadow the strong underlying revenue trend in general. Essentially, the company is saying that a global recovery is certainly helping but it shouldn't detract from Ava's overall success as a business.

Further news in the services division saw the announcement of a new general manager for Asia, who will be based in Singapore. The company also hinted that further key appointments could be expected to be announced in Q2 FY2021. On the topic of key roles, Ava also stated that its management incentive scheme, which was due to expire in February 2021, had now been extended to the end of FY2021.

Technology division

The technology division recorded revenue of $8.9 million and EBITDA of $6.1 million.

Ava reported that the technology division had continued to operate amidst the coronavirus crisis. Although general restrictions were in place, the tech division was able to continue delivering services to both current and new customers, including some deliveries for major defence programs. 

One major project highlighted in this latest report was the large-scale data network protection program for the Indian Ministry of Defence. This alone resulted in a contribution of $3.6 million in revenue for the quarter.

Some other highlights from the technology division included:

• Strong commercial interest in a new conveyor health monitoring solution called 'Aura IQ'.
• Increasing activity with the assurance sensing solutions. This relates to terrestrial and sub-sea power cables and roads infrastructure.
• First shipment of Ava's latest FOSS (free and open-source software) platform with machine learning software.

The FOSS platform is the completion of the first step in Ava's 'roadmap of innovative solutions' with the goal being to move to a software-as-a-service (SaaS) revenue mode. 

About Ava Risk Group

Ava Risk Group is a leading provider of risk management services and technologies. It services clients in the commercial, industrial, military and government sectors.

This company delivers solutions that are high tech and complex. It helps clients tackle risk management threats to perimeters, pipelines and data networks. Using bio metrics, card access control and locking, as well as secure international logistics, storage of high value assets and risk consultancy services, Ava delivers a diverse range of solutions. 

The Ava share price has increased 287.5% in year-to-date trading and has soared more than 416% since this time last year.

The post Why the Ava Risk Group (ASX:AVA) share price has rocketed 41% so far this week appeared first on The Motley Fool Australia.

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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.

JB Hi-Fi share price performance

After reaching a high of $52.88 in August this year, the JB share price then retreated back down to around the $46 to $47 mark by the middle of September. After remaining at these levels through until early October, the retail giant's shares again began climbing. This culminated in the JB Hi-Fi share price briefly breaching its all-time high in intraday trading today when it reached $52.99, before falling back to its current level of $52.54 at the time of writing. 

JB Hi-Fi shares have had an impressive run in 2020, rising almost 40% since the start of the year. Not to mention, following the coronavirus crash this year, the JB Hi-Fi share price is up more than 150% since those March lows. 

Normally, the lead up to Christmas is a bumper time for JB Hi-Fi. If the company's share price does manage to break through its all-time high and remain there prior to the holiday period, I think we could see more bullish moves to come. The last time the JB Hi-Fi share price exceeded its previous all-time high, it went on to secure an almost 15% gain in under two weeks. 

Outperforming in its space

Another point to note about JB Hi-Fi's share price performance is that its 12 month return stands at 53.5%.

This is considerably higher than the average for the industry in which JB operates. On the ASX, JB Hi-Fi is considered to be in the 'AU Specialty Retail' industry, which has only returned an average of 19.6% over the same 12-month period.

While not the 'be all and end all' of measures, it certainly suggests that JB Hi-Fi has outperformed a significant portion of its peers within the same industry.

Dividend yield

Although not widely considered a major drawcard for investors in JB Hi-Fi shares, I also think it's worth mentioning the company's dividend yield.

For more than 10 years now, JB Hi-Fi has paid investors a stable dividend yield of above 3%. It should be noted, though, that 2018 and 2019 saw a slightly higher yield than in 2020.

Dividend yields aren't typically considered to be an important attribute for growth shares. However, I do like to take a dividend yield into account since, in the end, it all adds up for an investor.

Levels to watch 

The important level to watch for the JB Hi-Fi share price is $52.88.

A break and close above this level will be considered to be a new all-time high for the company. Failing to break this level, or getting rejected here, could see the JB Hi-Fi share price continue to bounce between $52 and $46, where it has been for the past 30 to 60 days.

The post JB Hi-Fi (ASX:JBH) share price testing all-time high today  appeared first on The Motley Fool Australia.

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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.

In my view, ASX consumer staple shares represent a solid investment during times of economic uncertainty and market volatility. Consumer staples companies sell products that people use everyday. These include things like durables, food, beverages, tobacco, household goods and personal products. 

In this article, I take a closer look at three consumer staple companies with solid track records and trusted brands.

Woolworths Group Ltd (ASX: WOW)

Woolworths operates retail stores throughout Australia and New Zealand. Currently, Woolworths supermarkets and Metro food stores number over 1,000 across the country. In New Zealand, the group operates over 180 supermarket stores under the Countdown brand. The other major chain that Woolworths owns and operates is the Dan Murphy's brand. This, combined with BWS, Cellar Masters and Langtons, numbers above 1,600 stores as well.

Woolworths provides consumer staples and its share price has held up well during the recent coronavirus crisis.

Let's take a closer look…

Woolworths share price

The Woolworths share price hit an all-time high on 20 February 2020, reaching $43.96. The coronavirus pandemic initially hit the company hard, causing its share price to fall to a low of $32.12 by 13 March, less than one month later. Following this, Woolworths shares have had a steady recovery, moving from $32.12 up to $38.50 at today's price.

I think the fact that the Woolworths share price has held up in the current climate is, in part, due to its consumer staple product base. No matter what's happening with the economy, people still need essential products and Woolworths can provide almost all of them. Even with the pandemic still in play, overall the Woolworths share price is up 6.5% in 2020.

Dividends

Woolworths has a long history of paying solid dividends, notwithstanding the fact these have fallen lower recently. If we take a look at ten years ago, Woolworths' average dividend yield was over 4%. Today, the company's dividends offer an average yield of around 2.5%. Despite this, I believe Woolworths is such a stable investment that its dividends only add to its appeal for investors.

Blackmores Limited (ASX: BKL)

Blackmores develops, sells and markets natural health products for both humans and animals. It operates in Australia, New Zealand, Asia and various other locations internationally. Blackmores' product suite includes vitamins, minerals, herbs and other supplements. The company's range of products is vast and assists with a variety of health-related concerns such as arthritis, muscle strength, brain health, cold and flu, immunity, digestive health, eye health and more. With such a diverse array of products, I believe Blackmores can appeal to customers across a broad cross section of markets. To me, this makes the company a clear member of the ASX consumer staple shares cohort. It provides products that people rely on, regardless of the economic climate.

Blackmores share price

Like many companies on the ASX, the pandemic hit the Blackmores share price hard in the early months of this year. Between 6 February and 13 March, a period of a little more than 30 days, the Blackmores share price fell from $95.68 down to $59.84. However, as with other consumer staple companies, the Blackmores share price quickly recovered up to more than $80 by April. Unfortunately, in the second half of the year, the company's shares have consistently fallen, all the way back down to $66.18 at the time of writing.

Considering how long this brand has been around and what a trusted name it has in the market, I'm inclined to think the Blackmores share price is a deal at current prices and can only get better as the economy improves. Maintaining good health is something that most people regard as a priority and I feel this is only likely to become more widespread into the future. So whilst Blackmores may not provide critical health services like hospitals, I still believe its offering can be regarded as a consumer staple in most climates. Blackmores does not currently offer a dividend.

Inghams Group Ltd (ASX: ING)

Inghams may seem like a specialist provider, however it is still considered a consumer staple in my books. This company produces and sells chicken and turkey products in Australia and New Zealand. Additionally, it has a business within the stock feed niche, providing food to poultry, swine, dairy and equine producers. Having been around for more than 100 years, Inghams was founded in 1918 and is, I believe, a trusted and well-known brand in the Australian and New Zealand marketplaces.

Inghams share price

The Inghams share price also suffered during the initial stages of the coronavirus pandemic, falling from $3.77 down to $3.03 over a period of around one month. However, the share price has remained relatively stable since then, fluctuating between approximately $3.00 and $3.50. Closing today's trade at $3.10, I consider Inghams to be a strong brand and a stable stock to invest in.

Dividends

One thing to note about Inghams is that it pays a comparatively high dividend, with a yield of 4.58%. Although Inghams has only been paying dividends since 2017, it has maintained a fairly reliable yield over time. Its first dividend, issued in 2017, represented a 3.3% yield. Since then, Inghams dividends have fluctuated between 3% and 5.8%.

ASX consumer staple shares summary

Consumer staple shares might not be considered the most exciting stocks on the market. However, they are frequently associated with the older, established and more trusted brands in the market. The great thing about consumer staples is that they continue to be needed, no matter what state the economy is in. For me, this makes them a far more attractive option for longer-term investments. 

The post Why I like ASX consumer staples shares in the current climate appeared first on The Motley Fool Australia.

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Motley Fool contributor glennleese has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia owns shares of 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.

Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPG) are both trading near their all-time lows right now. The Telstra share price has certainly taken a beating over the last few years. The TPG share price seems to be following suit. Could they be worthy of an investment at current prices?

Performance

Telstra share price

The coronavirus pandemic was surprisingly harsh on the Telstra share price. To be honest, with such a large portion of the population working remotely, I'm surprised that the share price hasn't recovered more. Almost every company I look at has either bounced back from the March lows or even exceeded previous highs in some instances. Telstra has gone in the opposite direction.

After a brief period of recovery between April and July, the Telstra share price has fallen dramatically. On 12 August, the Telstra share price plummeted from around $3.38 all the way down to $3.11 in a single trading day. After this, the price continued to fall, and currently sits around $2.78 today. Telstra's all-time low share price sits at $2.55, which occurred at the very end of 2010. Since then the price rapidly recovered from $2.55 all the way up to $6.60 in 2015. It has been on a downward trend ever since. Its current price looks to be on its way for another retest of the telco's all-time low. Will Telstra hold its ground here and begin to rise? 

TPG share price 

TPG is a relatively new company to the ASX, being listed around 30 June 2020. Its shares first listed at $8.49 and unfortunately have steadily fallen since then, down to today's price of around $7.50. Twice this year already it has come close to its all-time low of $7.01. I'm curious now as to whether TPG will follow Telstra's lead and continue down to that level again.

In my view, both companies represent a potential buying opportunity if they can hold their ground above these lows.

Dividends

Investors looking for a holistic analysis will be pleased to know that Telstra offers a current dividend yield of 5.78%. TPG has no history of issuing dividends, however when TPG announced a merger with Vodafone Hutchinson Australia in June, investors were treated to a 'special dividend' of around 52 cents per share. However, this special dividend does not really constitute a dividend yield.

Both the Telstra share price and the TPG share price are currently sitting low, however Telstra is ahead of TPG with the dividend factored in. 

Potential 

It's hard to compare Telstra to TPG considering the age difference of the companies. TPG is certainly the up-and-comer in the telecom sector and obviously trying to take market share from Telstra. However, Telstra's long history of being a strong company and a blue-chip stock mean it has loyal investors and a sizeable footprint in the market. Its ability to capitalise on future trends will often put Telstra ahead of its competitors, particularly for future developments.

One of those potential future developments is the 5G network. Telstra is in prime position to take advantage of any potential future rollouts of a 5G Network. They are also a large carrier of the Apple iPhone. Apple has recently hinted that its latest iPhone may be 5G compatible, so this could be a potential catalyst in the making. Telstra generally has its finger in every pie and while it may not be the latest and most exciting telecom on the block, it's certainly a force to be reckoned with.

Foolish takeaway

In my personal opinion Telstra and TPG are 2 completely different companies and therefore quite hard to truly compare.

I see Telstra as more compatible for long-term investors, potentially those seeking more stable returns and a solid dividend payout.

TPG, on the other hand, is an exciting new contender that's only been on the market for less than 6 months.

If I was looking to hedge my bets I might take a position in Telstra for stability and income and TPG for growth potential. The merger between TPG and Vodaphone was certainly an interesting move and could lead to an evolution of both the company and its competitive position in the market.

The post Telstra share price and 1 other ASX telecom trading near all time lows appeared first on The Motley Fool Australia.

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Motley Fool contributor Glenn Leese 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.

Founded in 2017 in Melbourne, Afterpay Ltd (ASX: APT) is arguably the most well-known buy now, pay later (BNPL) brand in Australia. You have to hand it to the team though. They have their marketing stickers in almost every shop window and on every ecommerce website. The Afterpay business model is essentially short-term, interest-free lending. Similar to a lay-by type deal, but the consumer gets the product instantly.

Zip Co Ltd (ASX: Z1P) was founded in 2009 and just like Afterpay, it is well-known in the BNPL sector. It has a slightly different business model to Afterpay, offering not only BNPL services, but also personal finance management/education through its Pocketbook app. Additionally, Zip offers unsecured loans in different capacities.

Operations and locations

Afterpay has a broad reach, operating in Australia, New Zealand, the United States, Canada and the United Kingdom. It operates through a variety of brands such as Afterpay ANZ, Afterpay US, Clearpay and Pay Now. In August 2020, Afterpay signed off on a deal to acquire Spanish fintech company Pagantis, with the goal to expand its BNPL reach throughout Europe.

Zip is also a major international player, operating in Australia, the United Kingdom, the United Stated, New Zealand and South Africa. The company has multiple brands, including ZIP AU, Zip Global and Spotcap. It offers users digital wallets called either Zip Pay or Zip Money. They are essentially just for different sized purchases.

Afterpay has much more of the European market (after the recent acquisition) and also Canada. Zip has South Africa. In the question of Afterpay vs Zip, aside from those locations, they share a lot of geography.

Financial reports 

Afterpay's FY20 results really showed it to be a market leader in the BNPL sector. 

• Almost 10 million active users
• 55,000+ partners/merchants
• Revenue of $519.2 million, up 97%
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $44.4 million, up 73%

Zip Co's FY20 results were also very strong, but clearly show it to be a much smaller player.

• More than 2 million active users
• Almost 25,000 partners/merchants
• Revenue of $161 million, up 91%
• EBITDA of $3.5 million

Afterpay vs Zip? Afterpay is clearly the bigger player here.

Share price performance

Year to date, Afterpay shares are up around 170%, with the price rising from $29.15 to around $79.52.

Since its initial public offering (IPO), Afterpay shares are up a staggering 2,887%!

Zip shares have risen 91% in 2020, with prices moving from $3.53 to $6.76.

IPO-wise, Zip has been listed for a lot longer than Afterpay. The Zip share price has risen 2,599% approximately.

Looking at the performance, Afterpay shares have offered investors higher returns in 2020 and also since inception. 

Afterpay vs Zip key takeaways

Afterpay is a bigger player with more market share, a European and Canadian audience and higher returns for investors. For consumers however, Zip offers more options and this could be a key difference over time. Zip also has no scheduled repayments (you determine them within the account), so this can be a competitive advantage over Afterpay.

Even though Afterpay seems to be a clear winner for investors, it still has a lot of competition in general. Also, in the BNPL sector, companies are something only 1 good partnership away from securing huge amounts of market share. As BNPL is such a hot sector this year, it could be worth considering hedging bets and securing shares in both.

The post Afterpay vs Zip, which is the better investment? appeared first on The Motley Fool Australia.

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glennleese 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.

An all-time high (ATH) is when the share price hits a value higher than it has ever traded at before. Why is this significant? Many companies struggle to break previous highs for a number of reasons. Whether it's valuations, ratios, broker ratings or even just basic seller psychology, a company approaching its ATH can be a nervous time for investors.

Companies that break past this barrier and make new ATHs are a little bit special. They have broken the glass ceiling and are off and running. When this occurs, the feeling of huge potential is often renewed for investors. Today, three ASX shares have done just this. 

ASX shares making new all time highs

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is an e-commerce platform providing a premium shopping experience. The company specialises in furniture and homewares products and is considered to be Australia's largest online homewares store. Large is right. Temple & Webster has over 130,000 products listed. 

The company actually operates two different brands – Temple & Webster and Milan Direct. Milan Direct specialises in furniture sourcing with many of its products listed on the Temple & Webster marketplace.

Temple & Webster has an excellent reputation in Australia and has even won several awards to prove it. These include the Deloitte Fast50, BRW Fast Starters and Power Retail awards, to name a few.

The Temple & Webster share price hit a high of $4.37 in February this year, before coronavirus caused a landslide and sent it down to a low of $1.52. Since then, the company has not only recovered, but thrived. Its share price has risen a staggering 690% since those March lows to hit an all time high today of $12.10. 

The company has been in prime position to take advantage of the wave of online shopping occurring during the pandemic, recording a 74% increase in revenue in FY2020. These strong results have helped to push the Temple & Webster share price to lofty new heights.

Sealink Travel Group Ltd (ASX: SLK)

Sealink is Australia's largest integrated land and marine, tourism and public transport provider. It has established operations across Australia, London and Singapore.

The company boasts amazing numbers, including moving more than 280 million customers each year. That's right, million. It's impressive. Sealink achieves this using its fleet of over 3,500 buses and 80 ferries. Chances are, if you've travelled at all, you've travelled with Sealink!

You would think a company in this sector might have reported a bad year in 2020, all things considered. However, Sealink reported strong numbers in the form of a total revenue increase of 152.8% on the previous year. These are really incredible numbers in the face of the coronavirus pandemic.

For quite some time, the Sealink share price has traded at a maximum price of $5.23. In March, the company was also hit hard by the market crash, with its share price falling from $4.50 down to $2.50. Since then, it has well and truly recovered, climbing nearly 125% to close at $5.59 today. Not only has the rally been great for investors, but Sealink can now boast a new all-time high share price of $5.79 reached in intraday trade too.

Data#3 Limited (ASX: DTL)

Data#3 is a leading provider of IT services and solutions in Australia. Its product suite is extensive, ranging from cloud computing, security and analytics to procurement and project management services. 

The company has actually been listed on the ASX since 1997 and has over 40 years' experience in business. Revenue is substantial for this IT player, with it reporting a whopping $1.6 billion revenue in FY2020. Revenue alone doesn't mean much, but in the case of Data#3, this year it reported a 14.9% lift in revenue on the previous year and even more importantly, a lift of 30.5% in net profit. Great results all round.

Since the March crash, which took the Data#3 share price as low as $2.50, it stormed as high as $6.78 today before closing the session at $6.75. Again, like the other ASX shares on the list, this is a new all-time high for the company. One thing to note about Data#3, it actually made a new all-time high recently on 3 September and it has taken the company less than 30 days to do it again!

Foolish takeaway

Watching ASX shares making all-time highs is exciting because they are breaking through a barrier that has never before been broken. 

Often this can trigger a new bullish run for a company as investors develop a new wave of confidence surrounding just how far the share price could ultimately go.

The post 3 ASX shares making all-time highs today appeared first on The Motley Fool Australia.

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glennleese has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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.