The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Eley Griffiths portfolio manager Nick Guidera takes a look at three heavily discounted small-cap ASX shares.

Cut or keep?

The Motley Fool: Let's examine three ASX shares that have been devastated in the past year, and see if you think each of these fallen stars are now a bargain to pick up or if you'd stay away.

The first one is Wisr Ltd (ASX: WZR), a fintech stock that's plunged 64% over the last 12 months.

Nick Guidera: At this point in time, we believe it is too early [to buy]. 

The team at Wisr have built a disruptive next-generation personal lender with a focus on building financial products, apps, and services that are designed to improve the wellness of Australians. A track record of growing new loans since inception, Wisr now has a sizable loan book of close to $900 million and is targeting profitability in 2023. 

While the market opportunity is large, competition remains intense, and higher interest rates have meant the cost of funding has increased. As the economic outlook deteriorates in Australia, there is also likely to be further pressure on the consumer.

MF: Art marketplace Redbubble Ltd (ASX: RBL) has been slashed 76% in the past year. Would you pick it up as a bargain?

NG: At this stage, no. Redbubble has delivered a series of successive earnings downgrades, as the inflated revenue unwinds from the COVID bump. The CEO is embarking on a turnaround of sorts, however, the challenging trading conditions have meant there is a need to focus on cost out to conserve cash. 

MF: How about online furniture retailer Temple & Webster Group Ltd (ASX: TPW)? It's dropped about 40% over the past 12 months.

NG: At this stage, yes we are likely to [buy]. 

While there are consumer headwinds in Australia, Temple & Webster is the clear leader in the online furniture and homewares category. It has demonstrated it can continue to grow its customer base at a time where penetration remains low for online spend in the category relative to other developed markets.

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Australia's fastest growing companies of 2022 have been identified and they include a few names Aussie investors are likely familar with.

So, which ASX shares have been posting massive growth lately? Keep reading to find out.

Fastest growing Aussie companies of 2022 crowned

It's been a big year for some notable ASX stocks – they've been included in the 2022 AFR Fast 100 list, with two coming in among the top 10 fastest growing Aussie companies of 2022.

The list is presented by the Australian Financial Review in association with Pemba Capital Partners and PwC. It encompasses 100 companies boasting a compound annual growth rate (CAGR) of as much as 330% between financial year 2020 and financial year 2022.

5 ASX shares among Australia's fastest growers

Which ASX share will give investors exposure to the fastest grower on the Aussie bourse this year? It's WISR Ltd (ASX: WZR).

The company has been crowned the fastest-growing ASX-listed entity, coming in seventh place on the AFR Fast 100 List. The fintech stock provides consumer finance products.

It posted $7 million of revenue in FY20, growing that to $59 million in FY22. Not to mention, it surpassed $1 billion in loan originations over the three months ended March 2022.

Next up is ASX digital marketplace operator Camplify Holdings Ltd (ASX: CHL). It came in as Australia's ninth fastest-growing company. The company connects owners of recreational vehicles with hirers.

Camplify's shares hit the ASX in June 2021. It boasted nearly $3 million of revenue in FY20. That figure grew to $16 million in FY22.

Another ASX newbie has joined Camplify on this year's list, with telco and internet service provider Pentanet Ltd (ASX: 5GG) taking out spot number 25. Pentanet floated on the exchange in January 2021.

The company brought in $5 million of revenue in FY20, growing that to $16.8 million in FY22.

Just two spots lower lies Credit Clear Ltd (ASX: CCR). The company is in the fintech business, providing receivables management solutions.

In FY20, the company brought in $11 million. By FY22, that had grown to $21 million.

Finally, drone detection software provider DroneShield Ltd (ASX: DRO) has been crowned Australia's 37^th fastest-growing company of 2022.

It posted around $11 million of revenue for the 12 months ended 31 December 2021. That was up from $5.6 million in the prior period.

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Earnings season has been a busy one with plenty of mixed results. Here are three ASX All Ordinaries standouts that are lifting on their earnings today.

Helloworld Travel Ltd (ASX: HLO)

Shares of Helloworld are up 5.67% to $2.05 apiece at the time of writing.

Investors have rallied the share price higher following a robust set of FY22 results that saw the company return to operational profitability.

This translated to a full-year EBITDA loss from continuing operations of $10.6 million compared to $24.5 million in FY21.

Despite this, the momentum towards the back end of FY22 gave Helloworld confidence in providing FY23 guidance.

It expects a FY23 EBITDA profit of $22-$26 million.

Helloworld shares are up 20% in the past 12 months of trade.

Wisr Ltd (ASX: WZR)

Shares of Wisr were on the move in early trade and have since levelled back to trade in-line with yesterday's closing price.

The non-bank lending company delivered a 118% year-on-year gain in operating revenue with total new loan originations increasing 67% to $611 million.

This saw loan book growth of 103% for the 12 months to $780 million.

As a result, cash EBITDA saw an improvement of 30% to a loss of $7 million, ahead of last year's loss of $10 million.

Zooming out, Wisr shares are down 74% in the past 12 months.

Alcidion Group Ltd (ASX: ALC)

Shares of Alcidion are also cruising along in afternoon trade today, currently up 3.33% to 15.5 cents apiece.

Following its FY22 results, the company that specialises in digital software for healthcare providers has caught a bid as investors evaluate the company's growth trends.

Full year revenue was up 33% year on year to $34 million with total contract value (TCV) of $57.7 million.

This momentum sees Alcidion enter FY23 with more than $28 million in contracted revenue, an 87% gain on the same time last year.

Alicidion shares are down more than 55% for the year to date.

The post 3 ASX All Ords shares lifting on full-year results appeared first on The Motley Fool Australia.

The big banks, certainly, enjoy rate rises as they have both borrowers and depositors as customers.

When the Reserve Bank cash rate increases, they often pass on the full change to its borrowers while only awarding a partial amount to the depositors.

This fattens up what is known as their net interest margin, which is the difference between what they pay out to depositors and the income they receive from borrowers. 

But for those smaller players that are loan-only businesses, it's a different picture.

Forager Funds, in a memo to clients, noted that rising interest rates "can affect customers' ability to repay their loans" and inflate the cost of funding for the lenders. 

"Fear of growing problems in this sector has sent share prices plummeting," read the memo.

"The fund has small investments in both Wisr Ltd (ASX: WZR) and Plenti Group Ltd (ASX: PLT), whose respective share prices have fallen 42% and 35% this calendar year alone."

Performance 'exceeded expectations'

Despite the stock price drop, the Forager team noted that the performance of the businesses has "exceeded expectations".

The lending business is a race for scale.

"The expectation is for a small number of healthily profitable players to emerge over time and Wisr and Plenti look like two of them," read the memo.

"March quarter reports showed Plenti's loan book is already north of $1 billion and Wisr isn't far away. They will both hit $2 billion over the next few years without dramatically increasing the rate of progress and that should enable them to be nicely profitable."

'Fear is overdone' for Wisr and Plenti

The anxiety among investors for shares like Wisr and Plenti is, not so much the growth rate, but the hit to profitability from bad debts arising out of rising rates.

The Forager team acknowledged this "healthy scepticism is warranted".

"But the fear is overdone," read the report.

"Both these businesses are specifically targeting safer borrowers with a proven capacity to repay their loans. The March quarterly reports still showed default rates well below our long-run expectations."

Forager also noted both Wisr and Plenti have indicated they will raise charges to customers.

"In any case, savings rates in Australia remain high and jobs plentiful," the memo read.

"Economic conditions are absolutely going to deteriorate. But, while the portfolio weightings need to remain modest, we expect both businesses to successfully navigate and prove that their current share prices are far too low."

The post 2 ASX shares with prices 'far too low' right now: Forager appeared first on The Motley Fool Australia.

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Eley Griffiths portfolio manager Nick Guidera picks 3 ASX shares that are ready to shoot up in 2022.

Hottest ASX shares

The Motley Fool: What are the 3 best stock buys right now?

Nick Guidera: One that might be less familiar to your readers is Tuas Ltd (ASX: TUA). 

Following the merger between TPG Telecom and Vodafone in June 2020, the Singapore mobile business that TPG owned at the time was demerged from the broader group and transferred into a business known as Tuas. 

That listed entity now is a significantly growing telco… going after the Singapore mobile market. 

If investors can cast their mind back to the early days of TPG, TPG came in to disrupt the core telcos of Telstra Corporation Ltd (ASX: TLS) and Optus — and Vodafone to a lesser extent — offering cheap plans and good coverage, and an affordable solution for [an] area of the market that perhaps wasn't being looked after. 

That playbook is effectively being rolled out in Singapore by the former TPG team. As they look to take share in that market, they've spent the last few years building out their coverage.

They recently reached EBITDA break-even, and in their most recent quarterly update at their AGM last week, they indicated that they were making money at the EBITDA line, as well as growing subscribers. 

Probably the most interesting thing about the business is the plans that they're offering, I've been told, they're at least one-tenth of the price of some of the competitors out there. It's no wonder they're taking share, but they're doing it in a profitable way as demonstrated by [their] last quarter. 

I think that's a really interesting one and one that while it's had a good run, there's a long way to go in that story.

MF: Your second one?

NG: The second one is a sector that has struggled this year, but I think is particularly interesting, and that is DDH1 Ltd (ASX: DDH). DDH1 is a drilling business based out of Perth, WA. They have a significant amount of market share across hard rock commodities, and they provide drilling services for the likes of Fortescue Metals Group Limited (ASX: FMG), Rio Tinto Limited (ASX: RIO), BHP Group Ltd (ASX: BHP) and gold mining companies as well. 

They have had a very positive start to FY 22. Their utilisation of their drilling rigs has picked up substantially and they are also continuing to increase their pricing because of the demand for their drilling services across miners, who are looking to expand production, as they look to recycle mines. 

They recently announced the acquisition of Swick Mining Services Ltd (ASX: SWK), which is another mining company, to expand their fleet and to in-house some of the maintenance that they're currently outsourcing.

If you look at the competitors globally, like Major Drilling Group International Inc (TSE: MDI), they're saying quotes like "given the history of a mine cycle and the projected near term supply deficit for many mining commodities, I believe we're in the early stages of a significant mining industry upcycle" — and that's come from the CEO of Major Drilling, which is one of the largest drillers globally, listed in Canada. 

Given this is the exposure to Australian mining, and I think the sector's ripe for attention as miners who have made a lot of money through the iron ore booms and lithium booms and the gold booms from recent years, look to restock that production. The easiest way they do that is through incremental drilling and these guys are very well placed.

MF: And your final pick?

NG: The third one is Wisr Ltd (ASX: WZR). Wisr is an interesting small company that is one of the fastest-growing consumer finance fintechs. They have a highly automated digital lending and wellness platform that services prime borrowers. They've got really compelling unit economics, in terms of they continue to lower their funding costs, which will ultimately drive improved EBITDA margins. They've got a really big runway for growth as they take share away from the incumbent banks who are focusing less on personal loans. 

They've done it in a way where they're not just trying to gouge the customer with high interest rates. They're actually trying to encourage customers to look at their financial wellness through their tools that they're offering. They've got, I think, more than 450,000 users in their financial wellness ecosystem which they can then use to sell their lending products to. And as the world opens up, there should be some good demand for personal credit to go on holidays, to deal with life events like weddings, and to purchase new cars.

With a really strong management team and a growing loan book — and this stock has been knocked about not dissimilarly for the last 3 or 4 weeks on the fact that it is relatively early stage — I think it looks pretty interesting.

MF: Wisr shares were headed up earlier this year, but it's come down a little bit in recent weeks, hasn't it?

NG: It has. I think it's one of those stocks that were probably subject to some profit-taking. Little fundamentally wrong with the business, just a market that's a little bit more conservative and people wanting to allocate capital differently.

MF: Do you ever worry with these lending businesses about the amount of ongoing capital they require?

NG: Well, the beauty of Wisr's model is they have a warehouse arrangement with a number of the large major banks. Because the major banks can't access the personal loan market as efficiently as perhaps some of these new fintech digital offerings, they're partnering with these emerging companies like Wisr and offering their balance sheet to help with that funding requirement. 

In a way, the actual funding requirement from Wisr specifically is less than what it would be, not having these warehouse funding arrangements. Should the financial system melt down or there be a credit crunch of sorts then, yes, certainly these businesses are vulnerable. But for the moment, with a growing appetite for banks to expand how they lend, I think businesses like Wisr are pretty well-positioned.

The post 3 obscure ASX shares ready to rocket: expert appeared first on The Motley Fool Australia.

The Wisr share price has lost ground today as the market responds to its AGM. In the presentation, Wisr outlined several investment highlights.

However, the company hasn't caught any bids following the release – trading volume today is just 10% of its 4-week average, and shares are 8% down at last check.

What did Wisr announce?

Wisr reiterated its latest earnings update, where loan origination was a record $132 million in Q1 FY22. The company has now grown loan originations consecutively for 21 quarters in a row.

Loan book balance for Wisr Warehouse also surged 239% year on year and reached $451 million. At the time of its Q1 FY22 earnings, total loan originations for Wisr stood at $743 million.

The release also notes that in June 2021, Wisr's Financial Wellness Platform was 88% more cost effective as a loan acquisition channel compared to direct and broker channels. Across the second half in total, cost efficiency in this domain improved 33%, lowering Wisr's customer acquisition cost.

Over the longer term, revenue growth was up 280% in FY21 at $27 million, and operating expenditures (OPEX) also grew 43%. Note that Wisr already covered these figures in its FY21 earnings up date in August.

Wisr also had $55.1 million in unrestricted cash and liquid loan assets at the time of its report to ensure it is well capitalised.

Moving forward, Wisr states that it is set to pass its $1 billion loan book milestone in FY22. New milestones will also be set beyond the $1 billion loan book watermark.

It also wants to deliver 1 million customers to its proprietary platform, and potentially launch new products, thereby "creating new revenue streams and new market opportunities".

Investors have sold Wisr today and the bears have it for now, with shares trending down 25% in the past 3 months.

The S&P/ASX 200 Financials Index (ASX: XFJ) is also down around 4% this past month, indicating weakness in the broad financial sector.

Wisr share price snapshot

The Wisr share price has gained almost 12% in the past 12 months after rallying over 20% this year to date.

Yet in the past month, it has reversed course and is down 14.5%, and has slipped another 2% in this last week.

The post Wisr (ASX:WZR) share price in hiding after AGM today appeared first on The Motley Fool Australia.

At market open Wisr shares dropped 3.64% to 26.5 cents. They have since regained some of that loss, at the time of writing down 1.82% to 27 cents.

First quarter highlights

Wisr delivered a record performance across key operating metrics. Some key highlights include:

• Record operating revenue of $12.1 million, up 195% on Q1 2021 and up 25% on Q4 2021
• Record loan originations of $132 million, up 113% on prior corresponding period (pcp)
• Total loan originations of $743 million, up 142% on pcp
• Wisr Financial Wellness Platform surpassed 505,000 profiles, up 70% on pcp

In July, Wisr launched a major national brand campaign – For your smart part – to support its brand redesign.

The campaign was a broadcast and digital sponsor of the Tokyo Olympic Games with Seven West Media Ltd (ASX: SWM).

Metrics post-campaign have shown that Wisr was able to reach an astonishing 16.5M Australians, significantly exceeding expectations and Wisr's expected return on investment.

The company said that the strong campaign helped it achieve the 500,000 profile target a quarter ahead of internal expectations.

The brand campaign drove a big jump in expenses, with a Q1 2022 cash earnings before tax, depreciation and amortisation (EBITDA) loss of $5.5 million compared to a $1.6 million loss in Q4 2021.

Management commentary

Looking ahead, Wisr CEO Anthony Nantes is optimistic about easing restrictions and what that means for consumer financing.

We expect to see increased demand in the personal finance market as lockdown restrictions start to lift and consumer demand naturally rises in the personal loan categories that had been impacted by COVID-19, creating a strong tailwind for us as we head into 2022.

With two Wisr Warehouse facilities in operation and ready to drive significant, sustained growth, we're in an incredibly strong position to push through our medium-term target of a $1B loan book, accelerate our revenue, path to profitability and operating leverage into H2 and beyond.

Wisr share price snapshot

The Wisr share price has rallied 38% year to date. This is following an impressive growth trajectory of 21 consecutive quarters of revenue growth.

The post Wisr (ASX:WZR) share price slumps 4% despite record quarter appeared first on The Motley Fool Australia.

At the time of writing, the Wisr share price is up 1.79% to 28.5 cents.

Wisr hits another quarter of growth

Wisr was pleased to deliver its 21st consecutive quarter of loan growth, originating $132 million of new loans in the September quarter. That's up 113% on 1Q21.

Similarly, the Wisr Warehouse Loan Book balance surged 239% against the prior corresponding period to $451 million.

The company's total loan originations sat at $743 million as of 30 September. That is up 142% compared to a year ago.

The company believes it's well-positioned to continue its strong growth trajectory. It is also confident it can reach its medium-term goal of a wholly owned $1 billion loan book.

Management commentary

Speaking on the milestone that's possibly driving the Wisr share price today, CEO Anthony Nantes said:

Twenty-one straight quarters of new loan growth is a fantastic achievement. Looking to the next quarter and beyond into H2, there is such a massive runway of growth ahead of us in the markets of auto finance and personal loans as lockdown restrictions start to lift; consumer demand will only grow. Combined with our new $225 million Wisr Secured Vehicle Warehouse coming into effect in Q2 FY22, we're in an incredibly strong position to continue to deliver sustained growth.

A range-bound Wisr share price

The Wisr share price has largely been range-bound ever since its $50 million capital raising back in June.

New shares under the placement were offered at 25 cents. That's a massive 21.9% discount to Wisr's last closing price before the capital raising.

Not only were institutional investors offered a significant discount, but the raise itself represented 18.2% of the company's existing shares on issue.

The Wisr share price has since tested lows of around 25 cents, but struggled to hold above 31 cents.

The post Wisr (ASX:WZR) share price edges higher on another record quarterly result appeared first on The Motley Fool Australia.

At the time of writing, the Wisr share price is up 8.93% to 30.5 cents.

Wisr share price lifts on triple digit growth revenue

Wisr achieved significant financial and operational milestones in FY21, with key highlights including:

• Operating revenue up 280% to $27.2 million
• Total new loan originations up 168% to $365.8 million
• Total loan originations of $611 million as at 30 June 2021
• Maiden positive operating cash flow in the month of June
• Customer profiles on the Wisr Financial Wellness Platform lifting 80% to over 450,000

What happened to Wisr in FY21?

The Wisr share price has been a top performer in 2021, rallying 60.5% year-to-date.

The company continues to find success by redefining the consumer finance experience and providing its users access to a suite of financial wellness tools.

Wisr's loan originations continue to go from strength to strength, lifting 52% in 2H21 from 1H21 to $221 million.

The company is exploring additional verticals to expand its loan book, launching a secured vehicle loan product in 1Q21. Wisr believes this opens up a potential $51 billion market opportunity in the consumer vehicle finance space.

To help drive growth, the company successfully tapped into the global debt capital markets, pricing a $225 million asset-backed security (ABS) transaction to help scale its loan book.

That's in addition to a $55 million capital raising to accelerate the growth of its loan book and improve its technology stack.

While Wisr is still a loss-making business, the company is showing signs of improvement at the bottom line. In FY21, the company had a loss for the year of $17.6 million, a 25% improvement compared to the $23.5 million loss in FY20.

At the end of the period, Wisr remained well capitalised with cash of $92.4 million, driven predominately by the $55 million capital raise in June.

Management commentary

Wisr CEO Anthony Nantes commented on the results, saying:

The accelerated revenue growth of 280% to $27.2M is an exceptional result as the superior loan unit economics of the Wisr Warehouse funding model come into full effect. Now with our second major competitive product, secured vehicle loans, in market, there remains a huge opportunity for Wisr to grow market share by attracting Australia's most creditworthy customers with a smarter, fairer deal, underpinned by an exceptional customer experience that actually improves a customer's financial wellbeing.

What's next for Wisr?

The Wisr share price is within an arm's reach of its all-time high of 34 cents.

The business wants to put its "strong balance sheet to work" and accelerate the pace to achieve its medium-term target of a $1 billion loan book.

To drive loan book growth, the company aims to expand its total addressable market by exploring new markets and growth opportunities.

Its recent expansion into secured vehicle loans is already showing promise, representing 20% of the company's loan book as at 30 June.

In late March, the company executed a term sheet to invest in European financial wellness fintech platform, Arbor. The company believes this potentially opens up an entry pathway to the circa $1.76 trillion European consumer finance market.

The post Up 12%, the Wisr (ASX:WZR) share price is surging. Here's why. appeared first on The Motley Fool Australia.

By market close, shares in the non-bank consumer lender were trading at 30.5 cents each – up 9.09%. Competitor MoneyMe Ltd (ASX: MME) ended the day 1.46% higher by comparison.

Let's take a closer look at today's news.

The Wisr share price is soaring

In a statement to the ASX, Wisr gave an update on its cash position and activities during the last quarter. Overall, the company experienced a cash inflow of approximately $59 million for a total cash position of $92.4 million.

The main contributor to this position was $155 million in financing activities – including $55 million from a capital raise and $105 million debt facility.

Operations saw a cash outflow of $868,000. That's despite a "record" $9.7 million in revenue for the quarter – an increase of 234% on the prior corresponding period and 29% on the previous quarter. The company also says the month of June was cash positive.

Wisr loaned $95.1 million to customers in the quarter.

Management commentary

Wisr CEO Anthony Nates commented

It's an incredible credit to the Wisr team for delivering 20 consecutive quarters of growth and a maiden cash flow break-even month on the back of an exceptional 234% revenue growth, compared to the same period last year. This milestone result should give the market confidence around our market leading unit economics and our ability to deliver a highly profitable business as we continue to scale.

Nates said Wisr had taken "prudent steps" to strengthen the balance sheet with the recent equity raise that was supported by Goldman Sachs.

Combined with our inaugural $225 million ABS issue, these two transactions put Wisr in an incredibly strong position to extend our technology advantage and aggressively grow lending market share in the years ahead.

Wisr share price snapshot

Over the past 12 months, the Wisr share price has increased 20%. The S&P/ASX 200 Index (ASX: XJO) is up 23.4% over the same time. Year-to-date, however, Wisr shares are 58% higher.

The company has a market capitalisation of $362 million.

The post Why the Wisr (ASX:WZR) share price rocketed 9% today appeared first on The Motley Fool Australia.

At the time of writing, the non-bank lender's shares are unchanged at 28 cents apiece.

What did Wisr announce?

Investors appear mixed upon the company's latest release, leaving Wisr shares flat during afternoon trade.

According to its statement, Wisr advised it has launched its first major national brand campaign, supporting its recent brand redesign.

The campaign title, 'For your smart part' aims to deliver a clear and simple message around improving financial wellness. This is in relation to engaging with the 'smart part' of the brain to make better personal financial decisions. The project is running across the entire company's brand design, product and communication channels.

In addition, the refreshing of the new Wisr website that was updated in May has resonated strongly with consumers. The website integrates the full suite of products, tools and resources on the Wisr Financial Wellness platform.

The company also revealed that it will be a broadcast and digital sponsor at the Olympic Games Tokyo 2020 with Seven West Media Ltd (ASX: SWM). This gives unapparelled exposure to Australian households throughout the event.

Wisr CEO, Anthony Nantes commented:

There is no greater audience, or event, that delivers a better return on investment than the Olympic Games, with a huge reach into Australian homes, concentrated in a few action-packed weeks of high excitement and emotion. From a brand perspective, it offers a rare, ultra-impactful and cost-effective outcome, as we introduce millions of Australians to a smarter, fairer experience underpinned by a ground-breaking customer experience that improves financial wellness.

The release comes just days after Wisr announced it achieved 20 consecutive quarters of uninterrupted growth. For the fourth quarter, new loan originations jumped to $123 million, a 27% increase on Q3 FY21 ($97 million).

Wisr share price summary

Until recently, Wisr shares have moved sideways for most of the year. The company's shares price spiked at the end of May to a 52-week high of 34 cents on positive investor sentiment. However, since then, profit-taking has occurred, leading its shares to fall back to early May levels.

Wisr commands a market capitalisation of roughly $375 million, with approximately 1.3 billion shares on its registry.

The post Wisr (ASX:WZR) share price remains flat despite positive update appeared first on The Motley Fool Australia.

Wisr is a non-bank lender, offering personalised consumer loans of up to ~$63,000. The company also owns an innovative money management app allowing customers to round up purchases to the nearest dollar, with the difference used to pay off existing loans.

Why the Wisr share price is on the move

Wisr was pleased to announce the "continued trajectory of uninterrupted growth", delivering its 20th consecutive quarter of growth.

The company announced $123 million of new loans originated in Q4 FY21, a 26% increase on Q4 FY21 and a 193% increase against the prior corresponding period.

Wisr said it has now reached $611 million in total loan originations since inception, with the latest $100 million written in less than three months.

This momentum has carried through to its loan book balance, sitting at $379 million as at 30 June 2021, or a 342% increase on the prior corresponding period.

The company said that its medium-term target is to scale towards a wholly-owned $1 billion loan book.

What did management say?

Wisr CEO Anthony Nantes hailed the continued momentum, saying:

It's an incredible result to deliver 20 straight quarters of loan growth and another significant and material step-change in our new loan originations. Wisr's purpose-led model is attracting Australia's most creditworthy customers as they leave the banks and seek a smarter, fairer deal, underpinned by an exceptional experience that actually improves financial wellness.

About the Wisr share price

The Wisr share price has stalled in the past month, following a capital raising on 1 June.

The $50 million capital raising would offer a significant discount to participants, with new shares issued at 25 cents each, or a 21.9% discount to its last closing price on Friday, 28 May.

When Wisr resumed trading on 2 June, the company's shares plummeted 14% from 32 cents to 27.5 cents.

Despite this, the Wisr share price is still up a solid 40% year-to-date.

The post Wisr (ASX:WZR) share price up 3% on another record quarterly result appeared first on The Motley Fool Australia.

At the time of writing, Wisr shares are swapping hands for 25 cents, up 2.04%.

Wisr completes SPP

Wisr shares are climbing today following the announcement of a successfully completed Share Purchase Plan (SPP).

In a statement to the ASX, Wisr advised it has raised $5 million to accelerate its loan book growth strategy.

The SPP received overwhelming support from eligible shareholders, totalling more than $10 million invalid applications. This is double the size of the tabled offer put towards retail investors.

As a result, Wisr will scale back the applications based on the shareholding balances of applicants at the record date. All eligible applicants, however, will not be guaranteed a minimum quantity of Wisr shares. All valid submissions will be scaled backed proportionally to around 46% of the application value.

In total, roughly 20 million new ordinary shares will be issued under the SPP after rounding and scale back is applied. The offer price was listed as the same price as the placement at 25 cents apiece.

Wisr recently completed a placement to sophisticated and institutional investors, raising $50 million.

The SPP shares are expected to be allotted to investor accounts next Tuesday, 29 June 2021.

Wisr CEO, Anthony Nantes commented:

We would like to thank our shareholders for their ongoing support and endorsement of the Company's business model and look forward to delivering on the strategic initiatives which are now well- funded.

Wisr share price summary

The Wisr share price has jumped by over 20% since this time last year. The company's share price has recorded an even better result in 2021, up almost 30%.

Wisr shares reached a multi-year high of 34 cents late last month, before some profit taking occurred.

On valuation grounds, Wisr has a market capitalisation of around $324 million, with approximately 1.3 million shares outstanding.

The post Why the Wisr (ASX:WZR) share price is edging higher today appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are sinking:

Infomedia Limited (ASX: IFM)

The Infomedia share price is down 9% to $1.39. This appears to have been driven by profit taking from some investors after a particularly strong gain on Tuesday. The software company's shares are now trading roughly in line with where they were prior to yesterday's gain, which was driven by a solid trading update.

Megaport Ltd (ASX: MP1)

The Megaport share price is down 4% to $14.86. While the network as a service company released an investor update this morning, this decline appears to have been driven largely by broad weakness in the tech sector. After all, the S&P/ASX All Technology Index (ASX: XTX) is down just over 1% this afternoon.

Regis Resources Limited (ASX: RRL)

The Regis Resources share price has fallen 3% to $2.58. This follows a slight pullback in the spot gold price overnight. Regis isn't the only gold miner that is trading lower today. At the time of writing, the S&P/ASX All Ordinaries Gold index is down 0.8%.

WISR Ltd (ASX: WZR)

The WISR share price has returned from its trading halt and crashed 14% lower to 27.5 cents. This morning the non-bank lender announced the completion of an institutional placement. Wizr raised $50 million (before costs) through an institutional placement. The company raised the funds through the issue of 200 million new ordinary shares at a price of 25 cents each. This represents an 22% discount to its last close price. Management notes that the proceeds will allow Wisr to build a company of significant size, scale and impact in the Australian market.

The post Why Infomedia, Megaport, Regis, & WISR shares are sinking appeared first on The Motley Fool Australia.

This comes after the non-bank lender announced it has completed an institutional placement.

Wisr's capital raising efforts

One catalyst for the huge falls in the Wisr share price today may be investor fears over an impending share dilution.

According to this morning's release, Wisr has successfully raised $50 million (before costs) through an institutional placement. The company received overwhelming support from new and existing institutional, sophisticated and professional investors.

The offer will see 200 million new ordinary shares, at a price of 25 cents each, allocated to participating investors. This represents an 18.2% discount on the issued capital prior to when the company announced the placement.

Wisr will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval. The company will use an extension to the listing rule (listing rule 7.1A) to issue the remaining shares.

Investors will see the new shares added to their portfolio account next Monday 7 June.

Wisr CEO Anthony Nantes commented:

We are very pleased with the incredible demand we have received; the placement results acknowledge the track record of execution we have delivered, and significant support for the Wisr business model and forward outlook.

We are delivering a clear competitive advantage through Wisr's unique position in the consumer finance market and investors are confident in our strategy to redefine what a consumer lending company can be.

The proceeds of this capital raising will allow Wisr to build a company of significant size, scale and impact in the Australian market. We are very excited for what's ahead in FY22 and beyond.

Further to the placement, Wisr will launch a share purchase plan (SPP) for eligible shareholders. The SPP is based on the same terms as the placement, with the company hoping to raise an additional $5 million.

The SPP offer closes on 21 June, with the new shares to be allotted on 29 June 2021.

About the Wisr share price

Despite today's falls, Wisr shares have still accelerated by around 60% over the past 12 months. They are also up by more than 35% year to date. The Wisr share price surged late last month, reaching a 52-week high of 34 cents.

Based on valuation grounds, Wisr commands a market capitalisation of around $290 million, with close to 1.1 billion shares outstanding.

The post The Wisr (ASX:WZR) share price is plummeting 18% today. Here's why appeared first on The Motley Fool Australia.

Here are some of the highlights from the ASX:

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine share price went up around 0.7% today after announcing a media deal.

Nine has signed agreements with Facebook and Google, following the Federal Government's enacting of the 'News Media Bargaining Code'.

The deal with Facebook is for the supply of news video clips and access to digital news articles on Facebook news products, for a term of up to three years with a minimum amount payable over the term.

The 5-year agreement with Google includes the supply of news content (excluding video) for Google's News Showcase and other news products. Google will also expand its marketing initiatives across Nine's platforms.

Nine said in terms of guidance regarding these agreements, as well as the termination of Google's previous sales agreement, and the ongoing growth in subscription revenue for Nine's key mastheads, it expects growth in the publishing division earnings, before interest, tax, depreciation and amortisation (EBITDA) in FY22 (over FY21) in the range of $30 million to $40 million.

Centuria Industrial REIT (ASX: CIP)

The real estate investment trust (REIT) announced external revaluations for its 61 investment properties as it 30 June 2021.

The ASX 200 share's total portfolio increased to $2.9 billion. On a like for like basis, the portfolio valuation increased by $285 million, or 11%, from prior book values.

That brought the pro forma net tangible assets (NTA) to $3.85 per unit, an increase of 16% from $3.33.

Jesse Curtis, the fund manager of Centuria Industrial REIT, said:

Strong sector tailwinds continue to provide long-term benefits to industrial real estate with e-commerce and onshoring increasing demand for quality industrial accommodation. CIP is a beneficiary of the buoyant tenant market with a number of assets delivering valuation gains on the back of strategic leasing. Over the course of FY21, CIP has leased approximately 196,000m2 demonstrating the increased tenant demand for industrial space, which is expected to continue given limited future land supply in in-fill markets.

WISR Ltd (ASX: WZR)

The business announced it had originated $77.1 million of new loans in the first two months of the fourth quarter of FY21. Wisr said it's getting close to its 20^th consecutive quarter of growth.

It also said that its inaugural $225 million asset-backed securities 'ABS' transaction, the Wisr Freedom Trust 2021-1, has reached settlement, delivering a material reduction in Wisr's cost of funds.

Wisr CEO Mr Anthony Nantes said:

It's fantastic to see the continuation of our loan origination momentum. Our growth to date has us in prime position to aggressively grow market-show, as we scale towards our medium-term target of a $1 billion loan book. We're delivering a clear competitive advantage through a superior alternative model that actually improves financial wellness, going far beyond the traditional lending experience to attract Australia's most creditworthy customers.

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The company has today provided details of the capital raise, with Wisr shares set to resume trading on Wednesday, or after such time the capital raising is completed.

Wisr share price on watch

Wisr shares will be on watch when they resume trading tomorrow after the company advised it's looking to raise $50 million at 25 cents per share. This represents a 21.9% discount to its last closing price of 32 cents on Friday. The approximately 200 million new shares issued under the placement will represent 18.2% of the company's existing shares on issue.

A share purchase plan (SPP) will also follow the placement, with eligible shareholders entitled to subscribe to up to $30,000 worth of Wisr shares. The SPP aims to raise approximately $5 million, with the possibility of applications being scaled back at the company's discretion.

Trading update

Alongside the details of its capital raising, today Wisr also provided an update on its performance in the first two months of 4Q21. The company advised it's well on track to deliver 20 consecutive quarters of growth, with a loan volume of $77.1 million for the two months ending 31 May 2021. This figure represents a 234% increase compared to the $23.1 million in the prior corresponding period.

Wisr chief executive officer Mr Anthony Nantes commented on the growing momentum behind the company. He said:

It's fantastic to see the continuation of our loan origination momentum. Our growth to date has us in prime position to aggressively grow market-share, as we scale towards our medium-term target of a $1B loan book. We're delivering a clear competitive advantage through a superior alternative model that actually improves financial wellness, going far beyond the traditional lending experience to attract Australia's most creditworthy customers.

Inaugural term deal with AAA-rated top tranche

In further news released today, Wisr advised that its inaugural $225 million asset-backed securities (ABS) transaction, the Wisr Freedom Trust 2021-1, had settled, resulting in a material reduction in its cost of funds.

The Wisr share price previously jumped 7% on 20 May after the company announced a AAA rating for its ABS transaction. The announcement highlighted that global bond credit rating agency Moody's had rated its top tranche as AAA, signalling the company has a low credit risk and is well-positioned to repay its debt.

Now that the transaction has settled, today's announcement advised Wisr has an improved capital efficiency with required equity contribution falling to 3.2% from 5.0%.

Mr Nantes also commented on the ABS transaction milestone, saying:

It's a phenomenal achievement to receive a AAA rated top tranche from Moody's on an inaugural transaction. It's a significant external validation of the quality of the Wisr business operations, underwriting performance capability and the mature stage the business has reached. The oversubscribed demand achieved across all tranches is a clear indication that investors want high quality assets originated by high quality companies, and Wisr has delivered that.

The post Wisr (ASX:WZR) share price in focus amid $50 million capital raising appeared first on The Motley Fool Australia.

Wisr operates in the lending industry, facilitating a unique financial wellness ecosystem underpinned by competitive consumer finance products. The company's Wisr app automatically rounds up transactions to the nearest dollar, using the spare change to pay off debt faster.

Why the trading halt?

Wisr requested a trading halt in relation to a capital raising. The only detail the company provided in today's announcement was that the capital raising will comprise an institutional placement and a share purchase plan. Its shares will remain in a trading halt until Wednesday, 2 June or after the completion of the placement.

What investors might want to note is that Wisr already retains a strong cash position, with $33 million in cash and cash equivalents as at 31 March 2021.

Why has the Wisr share price surged in recent weeks?

It has taken a while for the Wisr share price to get going. Its shares have been consolidating around the low 20 cent level since June last year and only managed to push above the mid 20 cent level in the last few weeks.

Despite its share price chopping back and forth, the company has been busy kicking goals, delivering a number of financial and operational milestones.

The company's March quarter results witnessed an accelerated level of new loan originations, revenue growth and loan book quality metrics. Wisr's operating revenue surged to a record $7.5 million for the quarter, a 275% increase in the third quarter of FY20 and 27% increase in the second quarter FY21.

This growth was underpinned by a strong interest in its financial wellness platform, with more than 56,000 new customer profiles created in the March quarter, compared to 47,900 in 2Q21. This brings the company's total profiles to 401,488 as at 31 March, and the company is confident in its path to 1 million customers at a proven low acquisition cost.

More recently, the company hit another milestone with the pricing of its $225 million asset-backed securities (ABS).

Its inaugural ABS transaction received a top tranche AAA rating from international ratings agency, Moody's, demonstrating the company's low credit risk and ability to repay short-term debt.

The post The Wisr (ASX:WZR) share price is in a trading halt today. Here's why appeared first on The Motley Fool Australia.

Non-bank money lender Wisr Ltd (ASX: WZR) was trading at 15 cents 12 months ago, but after market close on Monday it had spiked up to 32 cents.

According to Shaw and Partners portfolio manager James Gerrish, the company has an "exciting" 1 to 3 years ahead of it.

"You take a bunch of loans and create a security out of them. And you sell those loans on a set yield," he said in his Direct From The Desk podcast.

"We hold Wisr in the Market Matters Emerging Companies portfolio. We're bullish on that stock."

Millennials + gen Z = a huge market

Shaw and Partners senior analyst Danny Younis reckons non-bank lenders have a big advantage with younger consumers.

"Millennials and generation Z are less likely to use cash these days. They're less likely to use credit cards these days," he said in the podcast.

"And they're very distrustful of the big four banks."

This factor gives Wizr a massive total addressable market (TAM) lending just in this country.

"The market is huge. Right now the TAM is $100 billion in Australia," said Younis. 

"And a big chunk of that is credit cards… Credit card debt in Australia is running at about $40 billion. That is a huge issue."

Wisr shares have 70% upside

Despite the stock doubling in the past year, Shaw and Partners have a 55 cent price target for Wisr. This is another 70% up from the current level.

"The key over the next 12 to 18 months is a couple of things. One, you need to get customer numbers up — go from 400,000 up to a million," said Younis.

"The second is to keep your bad debts low. So you want to continually have a prime book. You don't want to be a subprime lender."

Younis and Gerrish were complimentary about the people in charge at Wisr.

"The management team is very, very strong… They're really focused on customer analytics and data analytics, and utilising technology to really drive that adoption rate," said Younis.

"When they had their investor day 3 or 4 months ago and we finally got to meet them, it really proved to me this company is thinking ahead of the curve."

Younis added the chief executive Anthony Nantes formerly worked for small business lender Prospa Group Ltd (ASX: PGL).

"A really great background in this whole lending space… and he's got a large chunk of shares."

Wisr currently sits at a market capitalisation of $345 million. Adcock Private Equity Pty Ltd is the biggest shareholder with a 15.8% stake.

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Wisr is an Australian non-bank lender offering competitive, personalised consumer loans.

The company offers an innovative feature to round up purchases to the nearest dollar, with the difference going towards your debt, Wisr loan or savings account. The rounding effect pays off debts faster, meaning less interest you'll have to pay over time.

WISR share price higher on ratings update

Wisr proudly announced the pricing of its $225 million of ABS. The WISR Freedom Trust 2021-1 is the company's first ABS transaction, with strong investor interest seeing all tranches significantly oversubscribed.

Global bond credit rating agency Moody's rated the company's top tranche as AAA, the highest rating with the lowest credit risk. The AAA rating signals the company is well-placed to repay short-term debt.

Wisr touted the rating as "exceptional for an inaugural issuer" and "providing strong external validation of the quality of the Wisr business operations and the underwriting platform".

Management commentary

Wisr Chief Financial Officer, Mr Andrew Goodwin commented on the exceptional result and strong investor demand:

This transaction signifies a coming of age for Wisr as the Company commences access to the global debt capital markets. We are extremely pleased with the market appetite. It's a very strong testament to the quality of the Wisr loan book and overall business. The strong demand and pricing achieved across all tranches reflects that investors continue to seek high quality assets originated by high quality companies

There is a huge opportunity in front of us to grow market share in-line with our risk appetite and this
transaction is an important and strategic step for Wisr. We're in a prime position to aggressively grow our
revenue with significant room to scale towards our medium-term target of a $1B loan book. We have the
right ingredients to deliver a highly profitable, differentiated business that is well capitalised and with
market leading metrics

The Wisr share price so far in 2021

The Wisr share price has increased an impressive 50% year-to-date. This is despite the broader S&P/ASX 200 Info Tech Index (ASX: XIJ) sliding 18% this year.

Other tech-enabled financing businesses, such as Moneyme Ltd (ASX: MME), have failed to deliver meaningful returns.

The Wisr share price has likely been supported by strong financial and operational updates including a 275% increase in 3Q21 revenues announced on 29 April.

The company's record 19 quarters of back-to-back growth, announced on 14 April, also shored up the Wisr share price.

The post Here's why the Wisr (ASX:WZR) share price is up 5% today appeared first on The Motley Fool Australia.