Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Catapult Group International Ltd (ASX: CAT)

The Catapult share price is up a further 7% to $5.25. This sports technology company's shares have rocketed higher this week following the release of its full year results. Catapult recorded a 19% increase in revenue (in constant currency) to US$116.5 million (A$185 million) and an 18% lift in annual contract value (ACV) to US$101.2 million (A$161 million). This underpinned the more than tripling of management EBITDA to US$14.8 million (A$24 million).

Hutchison Telecommunications (Aus) Ltd (ASX: HTA)

The Hutchison Telecommunications share price is up almost 48% to 3.1 cents. This follows news that Hutchison Telecommunications (Amsterdam), which is an indirect wholly owned subsidiary of CK Hutchison, intends to make an off-market takeover bid for all shares it does not already own. A takeover price of 3.2 cents per share will be tabled, which represents a 52.4% premium to its last close price. In response, management said: "The HTAL Board has established a committee of HTAL's independent directors, Justin Gardener and John Scanlon, (Independent Board Committee or IBC) to evaluate and respond to the Offer. The IBC recommends that shareholders TAKE NO ACTION in relation to the Offer at this stage. The IBC is currently considering the Offer and will update shareholders in due course."

SKS Technologies Group Ltd (ASX: SKS)

The SKS Technologies share price is up 24% to $1.90. This has been driven by news that the electrical, audio visual, and communication networking solutions provider has won a new $100 million data centre contract. CEO, Matthew Jinks, said: "The awarding of this project with Erilyan Group underscores our unerring focus on excellence in project execution. The frequency of repeat business has always been a feature of SKS Technologies' operational performance and is founded on a proactive approach to communicating with our customers and an execution framework designed to deliver complex projects to their optimal level."

West African Resources Ltd (ASX: WAF)

The West African Resources share price is up 3% to $2.57. This morning, this African-based gold miner announced that it has intersected high grade gold mineralisation at its Sanbrado Gold Operations in Burkina Faso. West African chairman Richard Hyde said: "Results from the recent drilling are expected to deliver an increase in both tonnes and contained gold in comparison to the 2024 resource model. Updated Mineral Resources and Ore Reserves and a new 10-year production outlook are planned for release in Q3 2025."

The post Why Catapult, Hutchinson, SKS, and West African shares are pushing higher today appeared first on The Motley Fool Australia.

And while a green day is always welcome, this gain pales in comparison to what some ASX All Ordinaries shares are recording today.

Here are three ASX shares up over 10%:

AGL Energy Limited (ASX: AGL)

The AGL share price is currently up over 12% to $8.95. Investors have been snapping up the energy giant's shares today in response to a very strong half-year update. The company reported a 20% decline in revenue to $6,183 million but a 358.6% increase in underlying profit after tax to $399 million. This strong profit growth was driven partly by higher wholesale electricity pricing from prior periods being reflected in pricing outcomes and contract positions. This allowed the company to increase its interim dividend by 225% to 26 cents per share.

Hutchison Telecommunications (Aus) Ltd (ASX: HTA)

The Hutchison Telecommunications share price is up a sizeable 12% to 2.8 cents today. Interestingly, this is despite there being no news out of the ASX All Ordinaries share this morning. Though, it is worth noting that the company's shares are somewhat illiquid and only a small volume has been traded so far today.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price is 12% to 50.5 cents. While there has been no news out of this graphite producer either, it certainly isn't illiquid. A lot of shares have been changing hands today as investors continue to flood back into beaten down battery materials shares. This latest gain means that Syrah's shares are now up by an impressive 29% since this time last week. Though, that still doesn't change much on a 12-month basis. Over that period, the company's shares are down approximately 75%.

The post 3 ASX All Ordinaries shares rocketing over 10% today appeared first on The Motley Fool Australia.

During the lunch hour on Thursday the All Ordinaries Index (ASX: XAO) has given up its modest early morning gains and dipped into the red, down 0.2%.

But these three ASX All Ords shares are all soaring more than 10%.

Here's what's happening.

What's boosting these ASX All Ords shares?

Shares in financial technology company Iress Ltd (ASX: IRE) are up 13.9% at the time of writing, trading for $6.97 apiece.

This comes following the release of a strategy update and guidance upgrade.

The ASX All Ords share said its transformation program is progressing well into 2024. Its "refreshed" leadership team continues to focus on improving customer value, innovation and further cost efficiencies. The company said its technology uplift has "advanced well".

Likely offering a boost to the Iress share price today, the company has reduced its net debt to $308 million as at 31 October, down from $375 million on 30 June.

And Iress also upgraded its earnings guidance. FY 2023 earnings before interest, taxes, depreciation and amortisation (EBITDA) are now forecast to be in the range of $123 million to $128 million, up from the prior guidance of $118 million to $122 million.

Which brings us to the second ASX All Ords share leaping higher today, Hutchison Telecommunications Ltd (ASX: HTA).

Shares in the thinly traded Aussie telecommunications service provider are up 10.3% at 3.2 cents apiece.

With no fresh news out from Hutchinson, the gains look to be driven by a relatively small volume of trades today from investors who believe the stock was undervalued at yesterday's close.

Also leaping higher today

Rounding off the list of ASX All Ords shares rocketing higher today is IPD Group Ltd (ASX: IPG), a leading distributor and service provider to the Australian electrical market.

The IPD share price is up 13.6% at the time of writing at $4.77.

This comes after the company announced the successful completion of its fully underwritten institutional placement and the accelerated institutional component of its fully underwritten 1 for 13.65 accelerated pro rata non-renounceable entitlement offer of new IPD shares.

All new shares offered under the equity raising will be issued at a price of $3.93.

IPD will use the new capital to help fund its acquisition of CMI Operations from Excelsior Capital Ltd (ASX: ECL).

Commenting on the equity raising that's sending the ASX All Ords share soaring today, CEO Michael Sainsbury said:

IPD is delighted with the strong support shown by both existing and new institutional shareholders, demonstrating validation for IPD's strategy and the compelling strategic and financial rationale for the acquisition of CMI.

The post These 3 ASX All Ords shares are surging more than 10% on Thursday. Here's why appeared first on The Motley Fool Australia.

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.

Will the market be able to bounce back on Tuesday? Here are five things to watch

ASX 200 set to rebound.

The ASX 200 looks set to rebound strongly on Tuesday. According to the latest SPI futures, the benchmark index is expected to open the day 73 points or 1.25% higher. This follows a positive start to the week on Wall Street, which saw the Dow Jones jump 2.3%, the S&P 500 climb 1.5%, and the Nasdaq index rise 1.2%.

Oil prices recover.

Energy producers including Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices recovered. According to Bloomberg, the WTI crude oil price is up 3% to US$39.65 a barrel and the Brent crude oil price is up 1.7% to US$41.70 a barrel. Improving economic data gave oil prices a lift.

Gold price rises.

Gold miners such as Evolution Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Tuesday after the gold price edged higher. According to CNBC, the spot gold price rose 0.2% to US$1,783.70 an ounce. The precious metal is nearing a multi-year high amid concerns over rising numbers of coronavirus cases.

TPG Telecom-Vodafone hits ASX board.

TPG Telecom Ltd (ASX: TPM) and Hutchison Telecommunications (Aus) Ltd (ASX: HTA) shares were suspended and delisted after the market close on Monday. The merged entity will list on the ASX boards at 11:30am this morning under the name and ticker – TPG Telecom Limited (ASX: TPG). Its shares will initially trade on a deferred settlement basis. TPG's spin-off, Tuas Limited (XASX: TUA), will also commence trade later this morning.

Fisher & Paykel Healthcare named as a buy.

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price could be going higher from here according to one leading broker. Following the release of its strong full year result on Monday, Goldman Sachs has retained its buy rating and lifted its price target by 22% to $33.90. It has also suggested that its FY 2021 guidance is conservative.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

But despite holding value better than many of its ASX 200 peers, is the Aussie telco in the buy zone?

Why I'd buy and hold Telstra shares for a decade

Telstra has been a staple of Australian share portfolios for decades. The Aussie telco was favoured for its 100% dividend payout policy before slashing it lower in recent years. However, its shares currently yield a tidy 3.20% and, I believe, still have some serious upside.

Telstra is shaping up as a potential leader in the 5G network space. The group continues to invest heavily in the future which I think is key in this hyper-competitive industry. With NBN Co breathing down its neck, Telstra is focusing strongly on maintaining market share.

Innovation is also a key reason I'd buy and hold Telstra shares for a decade. The company's 'Telstra 2022' strategy illustrates forward thinking and, furthermore, the group is also focused heavily on slashing its costs. 

Having said that, the changing face of its competition has the potential to negatively impact Telstra's profitability. The proposed merger between TPG Telecom Ltd (ASX: TPM) and Hutchinson Telecommunications (Aus) Ltd (ASX: HTA) is shaping up to be a real threat to Telstra's long-term future. 

The merger would combine Vodafone's and TPG's capabilities and create another major player alongside Telstra and Optus. However, there is also the opportunity for Telstra to capture more market share amid an industry shake-up.

This means shares in the Aussie telco could see some real gains if its Telstra 2022 strategy pays off. Given its strong dividend yield in the short to medium term and a solid long-term growth outlook, I think there are worse buys than Telstra.

I also think the move towards working from home more could benefit Telstra. More remote working means increased demand for mobile infrastructure, which could benefit this market leader.

Foolish takeaway

Telstra shares have fallen lower in 2020, but it's important to invest for the long-term. I prefer to drown out the day-to-day noise and look at Telstra as a company to buy and hold for the decades ahead.

The post Why I'd buy and hold Telstra shares for a decade appeared first on The Motley Fool Australia.

Why the Telstra share price looks cheap today

Telstra shares have fallen 14.69% lower since the start of the year and are down 10.39% in the last 12 months. I'm not entirely sure the Telstra share price is worth 10.39% less than it was a year ago, but let's take a look.

If we rewind a little bit, the Telstra share price has spent the last few years under pressure. The rise of the NBN has strained its business model and had investors asking questions about its long-term plan.

On top of that, the telco has had a potential merger between TPG Telecom Ltd (ASX: TPM) and Hutchinson Telecommunications (Aus) Ltd (ASX: HTA) hanging over them.

But it's not as if the company has sat on its hands and done nothing. Telstra has re-thought its dividend policy and introduced its "Telstra 2022" transformation program.

Apart from an eye-catching name, that program looks to restructure the organisation and deliver billions in cost savings which could improve efficiencies and boost the Telstra share price higher. 

So, with all that said, how is Telstra positioned right now compared to 12 months ago?

I think the coronavirus pandemic has thrown a real spanner in the works for valuing ASX shares. No one is certain how long this will go on or what the implications will be for the Telstra share price down the line.

However, it looks like remote working capabilities could become more essential to most Aussie businesses. Rent is a big expense for many companies, most of which are now getting a trial run on mass-scale work from home measures.

That could put Telstra back in the box seat to emerge stronger from this pandemic. The group is a leader in the 5G network race after TPG withdrew to help bolster its Vodafone merger prospects. I'd be keeping an eye out for further earnings success in the decades ahead.

Foolish takeaway

There are, of course, some questions over Telstra's ability to deliver strong dividends in years to come. That's seen the Telstra share price slide 50% lower in the last 5 years.

However, with a $35.92 billion market capitalisation and a 3.31% dividend yield, I think the Telstra share price could be trading cheaply right now.

The post Why the Telstra share price looks cheap today appeared first on The Motley Fool Australia.

In afternoon trade the telco company's shares are down 0.5% to $6.92.

What did TPG Telecom announce?

This morning the company's proposed merger took a step closer to becoming a reality when a key condition precedent to the merger was satisfied.

According to the release, TPG Telecom has received the required consents from both the Committee for Foreign Investment in the United States (CFIUS) and the United States Federal Communications Commission (FCC).

These consents were necessary as they permit the proposed change of control relating to TPG Telecom's submarine cable between Sydney and the U.S. territory of Guam.

Management advised that the company is continuing to work towards meeting the remaining regulatory conditions and is aiming to complete the merger with Vodafone Australia by the middle of 2020.

Whilst the reaction from TPG Telecom's shares has been reasonably subdued, the news gave Hutchison Telecommunications' shares a big boost.

In afternoon trade the Hutchison Telecommunications share price is up an impressive 13.5% to 12.5 cents.

Other M&A news.

This isn't the only mergers and acquisition news on the ASX on Thursday.

At the time of writing the Seven West Media Ltd (ASX: SWM) share price is up 13% to 7.8 cents after the ACCC announced its decision to approve the sale of Pacific Magazines to Bauer Media.

Seven West's managing director and CEO, James Warburton, was pleased with the news.

He commented: "We welcome today's regulatory approval of the sale of Pacific Magazines to Bauer Media. This transaction provides $40 million in cash consideration (pre-adjustments and leave provisions). Additionally, the $6.6 million of advertising we are receiving from Bauer over three years further enhances the value of the sale, allowing the titles to continue to reach the valuable audiences SWM commands."

Pacific Magazines is home to a large number of popular magazines including New Idea, Marie Claire, Australian Men's Health, and InStyle.

The post TPG Telecom share price lower despite Vodafone Australia merger update appeared first on The Motley Fool Australia.

Already across Europe, we are seeing many countries temporarily shut down their schools as large parts of society go into lock-down. Schools across England and the UK are set close from the end of this week, and this follows a number of European countries that have already closed their schools including Italy, Spain, Ireland and Belgium.

The Australian government has recently announced that for the time being, Australian public schools will remain open.

However, despite the government decision, a number of Australian private schools have already made the move to temporarily close and have their students work from home. Pymble Ladies College and Knox Grammar School in Sydney are among a number of private schools that have moved classes online because of the coronavirus pandemic.

More are expected to follow in the weeks ahead, and it is quite possible that all schools in Australia will be closed at some stage temporarily if the situation worsens.

Australia's university and higher education sector may also be forced to temporarily close and have all students work remotely.

While many Australian companies will likely suffer, which ASX shares could potentially benefit?

Telecommunication providers

ASX telco providers such as Telstra Corporation Ltd (ASX: TLS), Optus, Vodafone Hutchison Telecommunications (Aus) Ltd (ASX: HTA) and TPG Telecom Ltd (ASX: TPM) could all potentially benefit from an increase in broadband usage as children continue their studies via online means.

Additionally, more employees will be working from home which will also see a rise in the usage of home broadband. If their children are forced to stay home, this will only see these numbers rising further. Telstra, for example, has told all of its Australian-based office staff that can do so, to work from home until at least the end of the month.

Essential food item providers

Supermarket chains such as Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Metcash Limited (ASX: MTS) have already seen high demand in a range of stock including personal hygiene products such as toilet paper and hand sanitisers, as well as long-life products such as pasta, rice and milk powder.

Other food companies that could benefit include Freedom Foods Group Ltd (ASX: FNP), A2 Milk Company Ltd (ASX: A2M) and Bubs Australia Ltd (ASX: BUB).

As more children study from home, and parents are forced to stay home to mind them, more families will be eating and cooking their meals at home, which will require higher than normal amounts of food and other items purchased from supermarkets.

Essential education items

Purchases of equipment and other supplies are likely to see increased demand for remote learning requirements. This could include items such as office stationery, benefiting companies like Wesfarmers Ltd (ASX: WES) which owns Officeworks.

Today, Wesfarmers announced that in recent weeks, Kmart and Officeworks continue to see strong sales growth and in particular, there has been strong growth in its online sales segment.

Meanwhile, companies such as JB Hi-Fi Limited (ASX: JBH) could see increased demand for laptops.

Home delivery of takeaway food is also likely to increase, benefiting companies such as Domino's Pizza Enterprises Ltd. (ASX: DMP). Dominos, in particular, has a highly developed home delivery service via its app and is prepared to move to 100% zero contact ordering and home delivery in the near future.

The post Which ASX shares will benefit from more children staying home from school? appeared first on The Motley Fool Australia.

Increasing demand for broadband and mobile services

I believe that ASX telco providers such as Telstra Corporation Ltd (ASX: TLS), Optus, Vodafone Hutchison Telecommunications (Aus) Ltd (ASX: HTA), TPG Telecom Ltd (ASX: TPM), Vocus Group Ltd (ASX: VOC) and Amaysim Australia Ltd (ASX: AYS) could potentially benefit from an increase in broadband and mobile usage in both the consumer and business segments over the coming months.

For a start, more people will be required to use social distancing procedures as mass gatherings are banned, so communication will be more important.

Additionally, more employees will be working from home which will see a rise in the usage of home broadband, and some schools and universities are already temporarily shutting down. In fact, Telstra has told all of its Australian-based office staff that can do so, to work from home until at least the end of the month.

In particular, there will be high demand for online streaming services such as Netflix Inc (NASDAQ: NFLX), as consumers watch more movies at home rather than in cinemas.

I think Telstra will particularly benefit amongst our telecommunication providers due to its scale and leadership position. Also, its strong cash flow and balance sheet will position it well to face any short-term market challenges.

Telstra's T22 strategy well on track

The ASX telco is now well on track to achieve the goals that it had put in place as part of its T22 strategy, as was revealed in Telstra's first-half results for FY 2020.

The reason the company has implemented this strategy is so it is able to evolve into a leaner, more efficient telco provider in a new era of Australian telecommunications that revolves around the National Broadband Network (NBN).

Before the NBN, Telstra received higher margins from its fixed broadband network, as it was able to offer wholesale services to other providers. However, as the NBN is progressively rolled out, this benefit has been gradually reduced.

Well-positioned to benefit from 5G

Telstra is a world leader in the development of 5G technology. There is a real opportunity for the telco to gain new mobile broadband subscribers from dissatisfied NBN customers when 5G services are eventually launched. 5G has the potential to offer even faster broadband speeds than the NBN, with speeds 7 times the speed of our current 4G network.

Foolish takeaway

With the current high market volatility, I believe that Telstra is worthy of consideration for your ASX buy list due to the relatively strong positioning of the telco market segment in the coronavirus outbreak, along with Telstra's leadership position.

The post Why Telstra could be a safer ASX share to buy right now appeared first on The Motley Fool Australia.

The "Currency (Restriction of Use of Cash) Bill 2019" has been introduced on the premise that Australia has to crack down on the 'black economy' by making it illegal to use cash for transactions over $10,000. 

The legislation proposes a $25,000 fine and two years jail for those who breach the new rules.  The legislation will allow the government to change the quantum at their discretion (meaning that over time, the $10,000 limit could be reduced to any number in the future). 

What are the implications of this?

The net effect of the legislation is that it will move Australia towards a cashless society. 

The biggest winners of this legislation would be the Big Banks who would be able to charge depositors to hold their money in the bank in the event that negative interest rates become a part of the economic toolbox of our regulators.  This could amount to a trillion-dollar boost for banks who have been licking their wounds on the back of the Royal Commission. 

The International Monetary Fund has already noted that negative interest rates may be required in the near future for global economic stimulus.

Cash transactions have been falling in Australia in recent years, in any case, so this legislation appears to be more of a tool for monetary policy to stimulate the economy going forward. Negative interest rates would only work if Aussies were forced to use the bank to hold cash. The policy aim appears to be to motivate people to spend their money, as opposed to save their cash. 

There are five Central Banks already with negative interest rates – the eurozone, Japan, Denmark, Switzerland, and Hungary. Although the Reserve Bank of Australia (RBA) governor Philip Lowe has said that it's unlikely that Australia will need to stimulate the economy with negative interest rates, this legislation does pave the way for the RBA to entertain unconventional policies. 

How did the bill originate?

This controversial legislation was originally proposed by KPMG, which suggested that small businesses in Australia are avoiding $7 billion in taxes. According to KPMG, it's tradies, hairdressers, nannies, gardeners and personal trainers who are evading their obligations who are the cause for this legislation. 

However, a public hearing in Sydney on 30 January 2020 determined that the biggest tax evasion in Australia has nothing to do with cash payments whatsoever. 

South Australian Senator Rex Patrick presented to the legislators 204 companies across Australia who over the last 5 years have generated more than $800 billion of revenue and not paid a cent in tax in that timeframe. The Senator mentioned a range of companies that have paid no corporate taxes over the past five years in spite of their vast revenue, including; Amcor Plc (ASX: AMC) $16 billion, Exon Mobile $42 billion, Ford $14 billion, and Vodaphone Hutchinson Telecommunications (Aus) Ltd (ASX: HTA) $18 billion.

The Senator went on to say that most Australians would find this situation unacceptable and he requested that the Tax Office to review the large end of town to assess whether the correct tax has been collected.   

At least 2,640 submissions against the legislation have been submitted to the government to date, however, the regulators have so far been unmoved by the concerns raised by every-day Australians. 

New Zealand has recently rejected cash-ban laws on the back of average Kiwis rejecting the loss of access to cash transactions with the associated loss of privacy and autonomy that this may involve. 

Foolish takeaway

The "Cash-Ban" legislation currently before the Australian Parliament is being proposed as a solution to the Black-Economy but in fact, appears to be a monetary tool for the government to boost the economy. The big winners will be the Big Banks and the big losers will be savers and those on fixed interest incomes.    

The post Controversial cash payment ban bill could see you paying the banks to hold your deposits appeared first on The Motley Fool Australia.

Here are two ASX shares that performed particularly well today. Let's take a look at what was driving their share prices higher.

Freedom Foods Group Ltd (ASX: FNP)

The Freedom Foods share price ended a very healthy 6.07% higher today to close at $4.72. Today's strong gain appears to be linked to an impressive set of financial results released last week despite high volatility in the company's share price since that time.

For the six months ended 31 December 2019, Freedom Foods delivered net sales of $299.7 million, a 43% increase over the prior corresponding period (pcp). Meanwhile, earnings before interest, tax, depreciation and amortisation (EBITDA) also grew strongly to $32.7 million, representing an increase of 55.6%. These impressive results were driven by strong sales and earnings growth from Freedom Foods' Dairy Beverage, Nutritionals and Plant Beverage business units.

At the time of the announcement, the company noted that it expects some short-term disruption to China demand over the next few months due to the coronavirus outbreak. However, the company further added that the underlying medium-term demand from key customers in this market remains unchanged. Freedom Foods remains scheduled to start supply to new China-based customers from June 2020.

Over the next few years, Freedom Foods is confident of continuing strong growth with regards to both earnings and revenue.

Vocus Group Ltd (ASX: VOC)

The Vocus share price lifted a strong 4.23% today to close at $3.45 per share. I believe that today's rise was partially linked to the ACCC decision released earlier today not to appeal the TPG-Vodafone merger.

The merger will reduce competition in the fixed broadband sector and this has seen a positive overall uplift to a number of ASX telco shares today. Vodafone Hutchison Telecommunications (Aus) Ltd (ASX: HTA) closed 13.3% higher, TPG Telecom Ltd (ASX: TPM) ended the day up 9.6%, while Telstra Corporation Ltd (ASX: TLS) shares saw a 2.01% increase. These gains would have also been buoyed by the overall positive sentiment on the ASX today.

Vocus also released a reasonably strong set of financial results back on February 19, 2020, in what was a very challenging market. For the six months to December 31, Vocus reported a 2% increase in underlying EBITDA to $179.3 million. Meanwhile, net profit after tax was down slightly on the pcp to $54.4 million.

These results were driven by a reduction in both direct costs and overheads. Management reiterated its guidance for group underlying EBITDA in the range of $359 million to $379 million for FY20.

The post Why Freedom Foods and Vocus shares soared higher today appeared first on The Motley Fool Australia.

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

TPG Telecom results.

The TPG Telecom Ltd (ASX: TPM) share price is charging higher today after delivering a solid half year result and upgrading its guidance. TPG Telecom posted a 1% increase in revenue to $1,246.5 million and a 6% decline in underlying EBITDA to $399.1 million. This stronger than expected first half led to management upgrading its BAU EBITDA guidance to be in the range of $775 million to $785 million. This compares to its previous guidance of $735 million to $750 million.

ACCC won't appeal TPG-Vodafone Australia merger decision. 

Also boosting the TPG Telecom share price today was news that the ACCC will not appeal the Federal Court's decision to approve the merger between it and Vodafone Hutchison Telecommunications (Aus) Ltd (ASX: HTA). The competition watchdog concluded that it does not have grounds for appeal. ACCC Chair Rod Sims said: "The ACCC remains disappointed by this outcome, which has closed the door on what we consider was a once in a generation chance for increased competition in the highly concentrated mobile telecommunications market."

Bank shares higher.

The big four banks have rebounded from yesterday's selloff and are all pushing higher at lunch. However, the majority of the banks have failed to push anywhere near as strongly as the market as a whole. This could be an indication that investors are still a little uncertain over their prospects following the rate cut. The best performer in the group at the time of writing is the Westpac Banking Corp (ASX: WBC) share price with a 1% gain.

Best and worst performers.

The best performer on the ASX 200 at lunch is the TPG Telecom share price with its gain of 8%. This follows its half year update and the ACCC's decision not to appeal the Federal Court's merger decision. The worst performer on the index today has been the Jumbo Interactive Ltd (ASX: JIN) share price with a decline of 4%. Some of this decline is attributable to its shares trading ex-dividend this morning for its fully franked 18.5 cents per share interim dividend.

The post ASX 200 lunch update: TPG & Westpac higher, Jumbo lower appeared first on The Motley Fool Australia.

The ACCC had previously blocked the merger, believing that it would substantially lessen competition.

Did the Federal Court make the right decision?

The ACCC argued that having only 3 major telco providers rather than 4 would lessen competition. However, I am not convinced about this conclusion.

I don't believe that the Australian market is large enough to support 4 independent mobile networks and the costs associated with maintaining them, especially considering Australia's sparsely populated areas.

If you compare Australia's telecommunications market to other developed telco markets across Asia and Europe, 3 major providers seems very reasonable to me in terms of a fair competitive environment.

I think that TPG would have struggled on its own to build a mobile network over our vast distances. And in any case, TPG had already made the decision not to proceed with its mobile network rollout.

How will the merger benefit TPG and Vodafone?

I believe TPG-Vodafone will now be in a much stronger position to compete with the current largest telcos in Australia, Telstra Corporation Ltd (ASX: TLS) and Optus, in both the fixed broadband and mobile segments of the market. As such, the merged entity will be much better placed to grow revenues and profitability over the next few years.

On its own, TPG was unlikely to be strong enough to provide sustainable long-term competition to Optus and Telstra in the fixed broadband market. This market is now a very cut-throat environment due to the high wholesale prices charged by NBN Co and the tight operation margins that fixed broadband operators must contend with.

The extra scale will place the newly merged TPG-Vodafone in a much stronger position to compete, reaping better margins and therefore, higher profits. In addition, the new entity will be well placed to provide new consumer product offerings such as bundled packages, which may well translate to higher market share and in turn, higher revenues.

Not only will there be a benefit in the fixed broadband segment, but TPG-Vodafone will also be in a much stronger position to roll out a competitive 5G offering, driven by Vodafone's current network.

How will the merger impact Telstra?

I believe the merger plans will have some degree of positive impact on Telstra's long-term growth prospects. Telstra will now only have to contend with two major competitors in the mobile space, with the potential of a fourth mobile operator entering the market now fairly much eliminated.

A fourth mobile operator entering the market would have no doubt raised market competition. Having said that, I believe that any benefit Telstra is likely to gain will only be small as the merger of Vodafone and TPG is likely to create a much stronger third competitor in the mobile sector.

Foolish takeaway

I view the merger decision as beneficial for the Australian telco industry as a whole. With this, I believe that both TPG Telecom and Vodafone will benefit from the merger which could see an uplift in share prices over the medium term. Additionally, I also believe there will a benefit, albeit a smaller one, to Telstra moving forward.

The post ACCC decides not to appeal TPG-Vodafone merger. What now? appeared first on The Motley Fool Australia.

Last week I had my eye on Telstra Corporation Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA) and AMP Ltd (ASX: AMP).

Telstra shares edged 0.53% lower last week after its half-year result and the Federal Court approving the TPG Telecom Ltd (ASX: TPM) merger with Hutchison Telecommunications Australia Ltd (ASX: HTA).

CBA shares climbed higher after the bank released its half-year earnings with stronger than expected profits. The AMP share price fell lower after posting a $2.5 billion loss and scrapping its dividend.

Check out the 3 ASX 200 shares that I'll be keeping my eye on in the third week of the February results season.

1. Altium Limited (ASX: ALU)

Altium is the first of the ASX 200 WAAAX shares to report its earnings in February. The Aussie-domiciled group is set to announce its half-year results after the market close today.

The Altium share price is up more than 1,000% in the last 5 years but needs another strong result to justify its lofty 69.5 price-to-earnings ratio.

If Altium fails to hit market estimates, there could be a violent share price drop, like we saw from Nearmap Ltd (ASX: NEA) in January.

2. Crown Resorts Ltd (ASX: CWN)

It's been a big few months for the ASX 200 group, with its shares coming under sustained pressure recently.

Crown has been in the public spotlight after an inquiry into James Packer's multi-billion-dollar share sale to Melco Resorts. The recent coronavirus epidemic has also sent the Crown share price lower on fears of reduced numbers of VIP guests from China travelling to Australia.

Crown is set to report its results on Tuesday and I'd be keeping a close eye on the Aussie wagering group this week.

3. Cochlear Limited (ASX: COH)

In my mind, Cochlear is one of those ASX 200 shares that tends to fly under the radar.

The healthcare group boasts a market capitalisation of $13.47 billion and its share price is up 155.71% in the last 5 years.

Cochlear is set to release its results today and could drag the ASX higher or lower, given its significant size.

The post 3 ASX shares I'm watching this week appeared first on The Motley Fool Australia.

The TPG share price was up by 11.5% by the close of trade on Thursday after the announcement was made, but was down by 1.1% on Friday, while Hutchison, which has a 50% interest in Vodafone Hutchison Australia Pty Limited (VHA), closed on Friday up 8.8% for the last two days of trading for the week.

TPG announced its intentions to merge with Vodafone Australia back in August 2018, however the ACCC decided in a later ruling in May 2019 it would be too detrimental to competition to allow them to merge. Now that the ruling has been overturned, the merger is expected to be completed next year.

TPG and Vodafone have been struggling on their own

I believe that the new entity will now in a much strong position to compete with the 2 current largest telcos in Australia, Telstra Corporation Ltd (ASX: TLS) and Optus, in both the fixed broadband and mobile segments of the market.

On its own, TPG was unlikely to be strong enough to provide sustainable long-term competition to Optus and Telstra in the fixed broadband markets. These markets have become a very cut-throat environment due to the high wholesale prices charged by NBN Co, and the tight operation margins that fixed broadband operators such as TPG must contend with.

TPG has been struggling over the past few years. In its most recent financial results for the full year ending July 2019, TPG saw a decline in overall revenues, earnings before interest, tax, depreciation and amortisation (EBITDA) and net profit after tax. Underlying EBITDA for FY2019 came in at $818.4 million, down from $826.7 million in FY2018.

TPG-Vodafone now a stronger threat

I believe that TPG is now much better placed to grow revenues and profitability over the next few years.

The extra scale will place the newly merged TPG-Vodafone in a much stronger position to compete against Optus and Telstra and reap better margins and therefore higher profits. In addition, the new entity will be well placed to provide new consumer product offerings such as bundled packages, which may well translate to higher market share and therefore higher revenues, boosting the overall bottom line.

Also, in the mobile telco segment, I believe the merged entity will be in a much stronger position to roll out a competitive 5G offering, driven by Vodafone's current network. I don't feel that the Australian market is large enough to support 4 independent mobile networks and the costs associated with maintaining them, especially considering Australia's sparsely populated areas.

Foolish takeaway

A lot will depend on how successfully the merger is executed. However, I am fairly confident that this will be done without too many issues, potentially leading to strong revenues, profitability and share price growth for the merged entity over the next few years.

The post Can TPG's merger with Vodafone revive its fortunes? appeared first on The Motley Fool Australia.

This news sent the TPG Telecom share price and the Hutchison Telecommunications (Aus) Ltd (ASX: HTA) share price hurtling higher.

Not everyone was celebrating, though. After initially pushing higher following the release of a solid half year result, the Telstra Corporation Ltd (ASX: TLS) share price ended up finishing the day in the red because of the news.

Is this merger a good or bad thing?

One person that feels consumers will suffer from the proposed merger is Macquarie Telecom Group Ltd (ASX: MAQ) CEO, David Tudehope,

He said: "This decision will only worsen the lack of competition, which has meant our industry continues to underserve and overcharge customers. Now that the decision has been made to allow the merger to go ahead, the Government and ACCC will need to reconsider how to improve retail and wholesale competition in mobiles."

"The telco industry gets twice the number of complaints to the Telecommunications Industry Ombudsman (TIO) as the banking industry's Australian Financial Complaints Authority (AFCA), its new Ombudsman, even after the Royal Commission. As a result, the telco industry risks losing its social licence," Tudehope concluded.

This sentiment was echoed by ACCC Chair Rod Sims. He said: "Australian consumers have lost a once-in-a-generation opportunity for stronger competition and cheaper mobile telecommunications services with this merger now allowed to proceed."

"The ACCC's concern was that with this merger, mobile data prices will be higher than they would be otherwise. These concerns were reinforced by statements from the industry welcoming the merger and the consequent "rational" pricing," Mr Sims added.

Goldman Sachs also doesn't expect this to lead to much of a change in competition in the near future.

The broker said: "In the short to medium term, we see little reason to expect the merger to have material impact on the current rationality in the Australian mobile market, suggesting less disruption in the market than expected."

"More choice and value for Australian consumers"

One person that doesn't agree with these views is Vodafone Australia's CEO, Iñaki Berroeta.

In response to the news, Mr Berroeta said: "For the first time, Australia will have a third, fully-integrated telecommunications company. This will give us the scale to compete head-to-head across the whole telecoms market which will drive more competition, investment and innovation, delivering more choice and value for Australian consumers and businesses."

The merger is expected to be completed in mid-2020, subject to the remaining regulatory/shareholder approvals, and any appeal by the ACCC.

The post What experts are saying about the TPG Telecom-Vodafone Australia merger appeared first on The Motley Fool Australia.

In terms of industry sectors, Utilities (+1.53%) and Consumer Discretionary (+0.77%) were the biggest gainers. In a broadly positive day for ASX shares, Consumer Staples (-0.83%) saw the biggest losses.

Here's a recap of the biggest ASX news, events and movements that you missed on another solid day of trade on Thursday.

Breville shares rocket higher after smashing expectations

One reason for the ASX Consumer Discretionary performance on Thursday was Breville Group Ltd (ASX: BRG).

Breville released its half-year results yesterday and reported a 25.4% jump in revenue to $552 million. The kitchenware appliance group also saw a 15.6% increase in earnings before interest and taxes (EBIT) to $72 million as management boosted the dividend by 10.8% to 20.5 cents.

Breville shares were already trading at a 52-week high prior to the results but surged 27.63% higher to $25.50 per share.

The group boasts a market cap of $3.32 billion, which meant the surge dragged the Consumer Discretionary sector higher.

TPG finally gets court approval for Vodafone merger

The TPG Telecom Ltd (ASX: TPM) share price rocketed 11.49% higher on Thursday after the Federal Court approved its merger with Vodafone Hutchison Telecommunications (Aus) Ltd (ASX: HTA).

The ACCC blocked the merger back in May 2019 on fears of reduced competition in the Aussie market. TPG subsequently dropped its 5G network plans and the Federal Court today approved the decision. 

The Telstra Corporation Ltd (ASX: TLS) share price dropped on Thursday following the news, while TPG shares soared.

Treasury Wine Estates shares slump on weak earnings

The Treasury Wine Estates Ltd (ASX: TWE) share price was the worst performer in the ASX 200 on Thursday after a disappointing half-year result.

Treasury Wines reported net sales revenue down 2% to $1,536.1 million for the first half. The winemaker's EBITS margin was 23.95% as EBITS climbed 6% to $366.7 million.

However, weak performance from its Americas business dragged on the result and a weak FY 2020 forecast sent the Treasury Wines share price falling 5.73% on Thursday.

The post 3 ASX events you missed on Thursday appeared first on The Motley Fool Australia.

The appeal decision

The Federal Court decided that a merger between TPG and Vodafone Australia would not lessen competition in the mobile market, so therefore the merger should be allowed to go ahead.

It's not 100% confirmed because it still requires regulatory approval, and the ACCC has 28 days to appeal the decision. Although ACCC boss Rod Sims' statement didn't convey the message that the decision would be challenged, "Australian consumers have lost a once-in-a-generation opportunity for stronger competition and cheaper mobile telecommunications services with this merger now allowed to proceed."

How did Vodafone Australia and TPG respond?

The share price of Hutchison Telecommunications (Aus) Ltd (ASX: HTA), which owns half of Vodafone Australia, rose by 14.3% today.  

Vodafone Hutchison Australia CEO Inaki Berroeta said: "We have ambitious 5G rollout plans and the more quickly the merger can proceed, the faster we can deliver better competitive outcomes for Australian consumers and businesses."

The initial 650 5G sites will be located in Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra and the Gold Coast.

It is hoped that the merger will be completed by mid-2020 if things go according to schedule.

TPG Executive Chairman David Teoh said: "TPG is very pleased with the Federal Court decision and looks forward to combining with VHA to create Australia's newest fully integrated telecommunications operator. We will work to finalise the other conditions to the merger as soon as possible."

Is TPG a buy?

With the TPG share price going up 10% today and up 15.7% over the past month, I think the quick money has been made. There are attractive synergies from the combined business, and bigger dividends, but we don't know a lot about how profitable 5G will be for the telcos yet, so I wouldn't jump to buy this week.

The post Why investors rang up the TPG share price by 10% today appeared first on The Motley Fool Australia.

Here's what has been happening today:

TPG-Vodafone Australia merger approved.         

The Federal Court has overturned the ACCC's decision to block the merger between TPG Telecom Ltd (ASX: TPM) and Vodafone Hutchison Telecommunications (Aus) Ltd (ASX: HTA). The court does not believe the merger would reduce competition in the Australian telco market. The two companies will now "work to complete the merger so that the benefits can flow to Australian consumers." The TPG Telecom share price is up 16% at lunch.

Telstra result.

The Telstra Corporation Ltd (ASX: TLS) share price was pushing higher this morning after the release of its half year results. But the merger approval has now offset this and sent its shares lower. This morning the telco giant revealed a 6.6% decline in underlying EBITDA to $3,875 million during the first half. However, underlying EBITDA (which excludes the in-year NBN headwind) increased by approximately $90 million. This was the first time this figure has grown since FY 2016.

NAB pushes higher.

The National Australia Bank Ltd (ASX: NAB) share price is pushing higher today after releasing its first quarter update. This morning NAB reported a 1% increase in cash earnings for the December quarter thanks to a slightly higher net interest margin. And although it warned that the divestment of its MLC wealth management business may be delayed till after the current financial year, it hasn't stopped investors from buying shares today. The NAB share price is up 2.5% at lunch.

Best and worst performers.

The best performer on the ASX 200 index today has been the Breville Group Ltd (ASX: BRG) share price with a 17.5% gain. This morning the appliance manufacturer revealed a 25.4% increase in half year revenue and a 20.8% lift in EBITDA. Going the other way is the Treasury Wine Estates Ltd (ASX: TWE) share price with a 5% decline following the release of its half year results. The wine giant warned that the coronavirus could have an impact on its second half performance.

The post ASX 200 lunch update: Breville & NAB higher, Telstra lower appeared first on The Motley Fool Australia.