By comparison, the S&P/ASX All Ordinaries Index is currently trading 0.17% lower.  

Let's take a look at what the toy and lifestyle products producer reported today.

What caused the Funtastic share price to jump?

The Funtastic share price responded positively this morning after the company announced it would be relaunching its Babies R Us brand and expanding its warehouse capacity.

The Australian Babies R Us e-commerce website, along with that of Toys R Us, was purchased by Funtastic in October last year for $29 million. The company relaunched the Toys R Us website soon after. Funtastic expects the Babies R Us website relaunch to begin during the first half of 2021 and further expanded during the second half of the year. Funtastic claims the baby retail market is an "under-represented retail category."

In further news boosting the Funtastic share price this morning, the company advised that, in relation to the Toys R Us website, organic and direct visitor sessions grew by 200% in January and February compared to the first two months of 2020.

To support the forecast growth, Funtastic is investing in its warehouse capacity. In its statement, the company stated it has secured access to 5,500 square metres of warehouse space in suburban Melbourne. The manufacturer, distributor and e-tailer will commence using the facility from April 2021 and commence processing orders from there by the end of June.

Funtastic managing director and CEO Louis Mittoni said of today's report:

The relaunch of Babies R Us is a significant milestone and important phase in the development of the Group. Advancements in Toys R Us' performance and the expansion in our logistics capabilities are also vital accelerators for our innovative e-comm platforms, for which we are well funded to implement in coming months.

Business streamlining

Also included in today's market announcement was news Funtastic would be "streamlining" its business going forward. Having already sold its confectionery business, Funtastic announced its 18-year wholesale distribution contract with Razor USA would be coming to an end.

Razor is a "scooter and ride-on" vendor for children. 15% of Funtastic's revenue in the first half of FY21 resulted from Razor products. Funtastic further advised it is continuing discussions with Razor regarding the continued supply of the brand for Funtastic's retail channels. 

Additionally, Funtastic reported that its overseas storage and services will be ended in favour of fully onshore operations.

Funtastic share price snapshot

Almost 52 weeks ago, the Funtastic share price was trading at less than 1 cent. Since then, its value has increased by a gigantic 1400%. However, Funtastic shares have fallen by around 46% from their one-year high of 19.5 cents.

Funtastic has a market capitalisation of $88.8 million.

The post Why the Funtastic (ASX:FUN) share price opened 10% higher today appeared first on The Motley Fool Australia.

At the time of writing, the Funtastic share price is down 7.6% to 12 cents.

What's lowering the Funtastic share price?

The Funtastic share price is dropping lower after investors took note of the company's change in strategic direction.

In today's release, Funtastic advised it is seeking to bring new products to market, expand e-commerce operations, and explore growth opportunities.

Based on management's decision to overhaul the company's existing portfolio, the company has sold off its confectionery business to Sweet Season Pty Ltd.

This follows its recent acquisition of Hobby Warehouse Group, which includes e-commerce businesses Hobby Warehouse, Toys'R'Us and Babies'R'Us.

The agreed sale of its candy business along with current inventory, went for the price of $1.05 million.

The company said that at the end of July 2020, the confectionery business recorded $4.2 million in revenue for the entire financial year. This accounted for 17.1% of total group revenue before the acquisition of Hobby Warehouse Group.

Net assets from the confectionery business amounted to $195,000 at the end of the same period. This represented just 4% of the total assets held by Funtastic.

What did management say?

Commenting on the divestment, Funtastic CEO and managing director Louis Mittoni said:

The sale of the confectionery business is part of the ongoing strategic review of all product ranges, customer segments and operations.

It accelerates materialisation of value for part of the business and will allow investment to build scale and to right-size the business, aligned with the planned growth and focus of the company to deliver our mission of encouraging children to engage with as many forms of play as possible and assist people to explore, create and live life more fully.

Funtastic share price snapshot

Over the past 12 months, the Funtastic share price has zoomed higher, reflecting gains of more than 470%.

The company's shares took a dive during the March COVID-19 meltdown and were priced at just 0.7 cents per share. However, trading conditions improved, which saw its shares reach a 52-week high of 19.5 cents in October.

Based on the current share price, Funtastic commands a market capitalisation of around $101 million.

The post Here's why the Funtastic (ASX:FUN) share price is sinking today appeared first on The Motley Fool Australia.

What has Funtastic announced recently?

On 23 October, Funtastic announced that it would undertake the acquisition of Australian e-commerce websites Toys "R" Us, Babies "R" Us, Hobby Warehouse and Mittoni. The company also announced that it would recapitalise through a fully underwritten placement and a debt for equity swap.

This morning, the company announced that it had successfully completed a placement worth $29 million. Funtastic will issue 258.9 million shares at an issue price of 11.2 cents. According to the company, the placement was well supported by both existing shareholders and new investors. The company's major shareholder, Jaszac Investments Pty Ltd, also committed to a conversion of $6 million of debt to equity, also at an issue price of 11.2 cents. 

The planned acquisition, placement and debt for equity swap are subject to shareholder approval, which will be sought at the company's annual general meeting on 23 November 2020.

The issue price of 11.2 cents was a 72% premium to the company's last trading price of 6.5 cents on 30 September.

According to Funtastic, capital raised from the company's placement will fund the growth of the group, develop logistics, warehousing and automation capabilities, marketing and brand development, debt repayment and the development of e-commerce technology and associated intellectual property.  

Funtastic chair Bernie Brooks commented on the company's placement:

With a strengthened balance sheet, Funtastic is well positioned to take advantage of the structural shift towards e-commerce for toys and hobby products while continuing to support and grow our ongoing wholesale agreements with our distribution and retail partners.

About the Funtastic share price

Funtastic is a wholesaler and distributor of consumer lifestyle products, which includes its own products and the products of its partners. Funtastic has been listed on the ASX since 2000.

The Funtastic share price is up 3,400% since its 52-week low of 0.4 cents, and is up 600% since the beginning of the year. The Funtastic share price is up 366.67% since this time last year.

The post Funtastic (ASX:FUN) share price storms 200% higher following suspension appeared first on The Motley Fool Australia.

Big Un shares were trading at 21 cents this time last year and are now going for around $4.10, representing an astonishing gain exceeding 1,850%.

But recently the video technology company's share price has been all over the place.

Prior to yesterday's strong gains, the Big Un share price copped a hammering and shed about 30 per cent over the course of a week.

On Wednesday Big Un reassured the market that all relevant information in relation to the financial performance of the company had been provided although its share price was taking dramatic turns.

Big Un stated the ongoing sustainability of its current level of operations "remains strong" and its growth trajectory is "on track".

The tech company also stated that it remains "comfortable" with the guidance it previously provided and did not anticipate any variation to its recent announcements.

On Monday, Big Un provided an update on operational and sales activities following its US expansion in Austin and Los Angeles.

Big Un stated that this quarter over 800 US customers had been on-boarded to date.

"Following the establishment of two sales centres with a total of 29 seats, Big anticipate on-boarding a further 600 US customers by the end of the quarter resulting in 1,400 signed agreements by 31st December 2017," the company stated.

Big Un, with a market value that is now close to $500 million, also provided its market guidance this month for the second quarter (Q2) of financial year (FY) 2018.

Big Un expects to achieve cash receipts from customers in excess of $20 million for Q2 FY 2018, an increase of 398 per cent from Q2 FY 2017.

Other ASX tech companies that saw their share prices surge on Wednesday include Funtastic Limited (ASX: FUN), which gained more than 12 per cent, and Integral Diagnostics Ltd (ASX: IDX).

The Integral Diagnostics share price gained more than 20 per cent amid news of a potential takeover by Captiol Health Ltd (ASX: CAJ).

If you would like to check out more opportunities in the tech sector then this is worth a look…

The post Why the Big Un Ltd share price shot up 20% appeared first on The Motley Fool Australia.

However, after a solid run it seems unlikely that dividend stocks like the banks will rise much more, as they are some of the most expensive in the world on most metrics. Here are seven high-yielding stocks that will pay a solid income stream and, in my view, will also see share price appreciation on the balance of probabilities.

The first stock on this list is hotel and flight booking website Wotif.com Holdings Limited (ASX: WTF). Wotif is trading on a trailing yield of 8.6% fully franked, although in FY 2013 it had a 96% payout ratio, so it could barely afford the dividend. The company is no longer growing, as intense competition from new websites such as Air Bnb and Skyscanner undermine its appeal. However, the company has extremely high brand recognition and even if revenues are in decline, I'm of the opinion that the decline will be a slow one. As a result, I believe the company has the ability to pay dividends in excess of 7% (at current prices) for many years to come.

The only mining services stock I've written about positively is NRW Holdings (ASX: NWH). You won't catch me buying mining related stocks, but I do think NRW Holdings is the baby thrown out with the bathwater. I suggested it was a buy at $1 and although it now trades at $1.34, it still has a fully franked dividend of 8.4%. Although profits are likely to decline, NRW should be able to get through the end of the mining boom because most of its projects are related to production, rather than Greenfield development. To minimise risk, potential investors should wait until some bad news is released and buy shares on a dip.

A far safer option for yield seekers would be Australian Leaders Fund (ASX: ALF). The fund is essentially a publicly traded hedge fund with a trailing yield of 7.1%. It trades at above net tangible assets, indicating that the market is willing to pay a premium for (expected) superior investment management. Personally, I like the fund because it is setting itself up to profit from the ageing population, but I don't invest in managed funds as a general rule.

One high-yielding company that investors are likely to know well is Oroton Group Limited (ASX: ORL). The company paid 50c in dividends in FY2013 and trades on a trailing yield of 9.1% at current prices. However, don't be caught out by this manoeuvre; this dividend represented an unsustainable payout ratio of 287% of underlying earnings. This state of affairs has been brought about by the loss of the Ralph Lauren brand in Australia. There is good reason to believe the company will grow earnings going forward, as it has just made investments in Gap and Brooks Brothers and expanded the Oroton brand to Hong Kong and China. However, the dividend is likely to be drastically cut. I've included Oroton in this list because it is attractive at current prices, but the company does demonstrate that investors should be wary about trailing dividend yields: it's the future that counts most.

My favourite company on this list boasts a more sustainable dividend, also over 9%. Gale Pacific Limited (ASX: GAP) manufactures and distributes shading materials and other home improvement products. Gale boasts a P/E ratio of under 10, brings in foreign revenue, has manageable debt, and, I believe, will continue to experience demand for its products. Low Return On Investment (ROI) businesses like Gale can easily lose money if they make poor acquisitions or take on too much debt. I'd call Gale a strong buy for the dividend at 25c or below, but even at current prices it boasts a partially franked dividend yield of 9.3%.

One way to secure a strong income stream is to buy a solid company when the market has turned against it. Such an opportunity has arisen with Metcash Limited (ASX: MTS), which yields 8% fully franked at current prices. Metcash is a distribution company that supplies independent supermarkets and liquor stores, competing directly with the well-known supermarket duopoly. Earnings went backwards in FY 2013, sending the share price tumbling; it cannot be denied that significant risks remain, as the introduction of new competitors such as Aldi has made the supermarket space increasingly competitive. I'm not willing to buy shares yet, but I believe the dividend would only be cut by a small amount, if at all.

Trading at a trailing P/E of just 5 and paying a fully franked dividend yield of 7.4%, toy company Funtastic Limited (ASX: FUN) certainly has its attractions. However, the company only turned itself around in FY 2012, having made a loss in the prior years. Significant dilution in recent years has hurt shareholders and one of the directors sold $150,000 worth of shares in January. Personally, I'd avoid this stock, but I have to admit the metrics look attractive.

Foolish takeaway

All the high-yielding stocks mentioned above are likely to pay strong dividends and will probably beat the market. Of these, I'd only consider buying Wotif or Gale Pacific, because I think there is a substantial chance of capital gains with these stocks. As a mater of principle I much prefer to buy shares in discounted companies with growing dividends. Such companies may yield less income today, but they are likely to outperform the high-yielding companies on the list above over the long term. It's often worth accepting a slightly lower yield, if the business is high quality.

The post 7 solid stocks yielding over 7% appeared first on The Motley Fool Australia.

It's certainly not unusual for the weather to be a consideration when it comes to investing, as weather – particularly at the extremes – has always played an important part in determining the outcome for companies across a range of industries each year.

The agricultural sector is arguably the industry most reliant on the weather with yields often dramatically affected by adverse weather events. Other industries which are prone to suffer from adverse weather include the mining industry which can experience production stoppages; the insurance industry which is affected by severe weather events it has written premiums against, and the retail industry which has to try and predict the demand for certain products based on seasonal weather patterns.

On the whole extreme weather events are usually associated with a decline in earnings for the companies affected, however there are companies which are positioned to benefit from extreme weather events. The following four companies stand to gain from the heatwave being experienced across Australia at the moment.

1) Amongst its portfolio of entertainment venues, Amalgamated Holdings Limited (ASX: AHD) owns the Event Cinemas chain, which has operations across mainland Australia. The air-conditioned comfort of the cinema makes it a popular venue on hot days.

2) Gage Roads Brewing Co Limited (ASX: GRB) is a contract brewery based in Western Australia that also produces beers under its own label. Australia has one of the highest rates of beer consumption per capita in the world and the current weather is bound to provide a boost to sales.

3) Funtastic Limited (ASX: FUN) is a wholesaler and distributor of toys and kids products. Amongst its portfolio of brands is the Floaties brand, which is likely in use at pools and beaches right across Australia. The company recently released an innovative cup designed for use in the home that makes slushies in a matter of seconds. Just as beer might be the beverage of choice for cooling down adults, no doubt home-made slushies will be a hit with many kids.

4) Westfield Retail Trust (ASX: WRT) comprises a portfolio of 47 high-quality shopping centres across Australia and New Zealand, including Bondi Junction in Sydney. Foot traffic through malls on hot days is generally high as shoppers escape the heat for air conditioned malls. The fact that most retailers are also in the midst of end-of-season sales should also add to the appeal this week.

Foolish takeaway

While the long-term earnings potential of companies may not be affected by a short-term heatwave, the upcoming reporting season in February could see companies such as the ones above reporting a nice boost to their earnings thanks to the weather.

The post 4 hot stocks for a heatwave appeared first on The Motley Fool Australia.