The Woolworths Group Ltd (ASX: WOW) share price is edging higher on Tuesday.

In afternoon trade, the retail giant's shares are up slightly to $37.10.

Why is the Woolworths share price edging higher?

While the Woolworths share price has been up and down all day, it was given a little lift by an announcement after lunch.

That announcement reveals that Mydeal.com Au Ltd (ASX: MYD) has completed its shareholder vote relating to being acquired by Woolworths.

According to the release, shareholders have voted overwhelmingly in favour of the $1.05 cash per share deal.

A total of 99.89% of the votes cast by scheme shareholders were in favour of the $243 million transaction, which will see Woolworths acquire an 80% stake. The remaining 20% will be retained by MyDeal's founder and CEO, Sean Senvirtne, along with certain other key management shareholders.

With ACCC approval already granted, the deal now looks set to close successfully next week on 14 September before being implemented on 23 September.

Why is Woolworths acquiring MyDeal?

Woolworths hasn't commented on the deal today, but has previously explained that it sees the acquisition as a way to enhance its marketplace capabilities. It said:

MyDeal will enhance Woolworths Group's marketplace capabilities, particularly in furniture, homewares and other bulky goods. It will complement BIG W's existing general merchandise offer and is consistent with Woolworths Group's strategy to 'Connect our customers with Good Food and More Everyday'. For MyDeal, access to Woolworths Group's platforms and capabilities will support its continued growth.

Woolworths' CEO, Brad Banducci, added:

The addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs and materially expands our marketplace capabilities, especially in general merchandise.

The post Woolworths share price edges higher as shareholders green light MyDeal takeover appeared first on The Motley Fool Australia.

The Woolworths Group Ltd (ASX: WOW) share price is slipping today amid an announcement that its proposed acquisition of online retailer MyDeal.Com.Au Ltd (ASX: MYD) is unopposed by Australian market regulators.

At the time of writing, Woolworths shares are swapping hands for $37.90 apiece, down 0.32% on Thursday's closing price.

In contrast, the MyDeal share price is currently up 0.97% to $1.045.

For comparison, the S&P/ASX 200 Consumer Staples (ASX: XSJ) index is down 0.2%. The S&P/ASX 200 Index (ASX: XJO) is doing slightly worse, recording a 0.59% loss.

Let's take a look at what the Australian Competition & Consumer Commission (ACCC) announced today.

ACCC gives green light to acquisition 

In a decision released this morning, ACCC Commissioner Lisa Carver said:

Following our review and feedback from market participants, we do not consider that Everyday Market from Woolworths is a significant competitor to MyDeal or other online marketplaces and consequently, this acquisition is unlikely to substantially lessen competition.

Furthermore, the ACCC found that it was "unlikely" that the merger between Woolworths retail and MyDeal's online presences could lead to anti-competitive practices in the future.

"Woolworths would continue to face significant competition from online marketplace platforms available to third-party sellers," Ms Carver added. 

My Foolish colleague Brooke Cooper reported in May that the supermarket offered to acquire MyDeal for $1.05 per share, or a 62.8% premium on the company's closing share price.

Once the deal closes, Woolworths will own 80.2% of the online retailer, with 19.8% held personally by upper management. Woolworths CEO Sean Senvertne will hold a vast majority of this amount with a stake of 18.9%.

Woolworths confirmed the acquisition would be subject to approval from MyDeal shareholders at a scheme of arrangement meeting scheduled for 6 September and court approval.

Woolworths share price snapshot

The Woolworths share price is down 7% over the past year and 0.8% this year to date. However, it has gained 3.5% over the past month.

Woolworths has a market capitalisation of $46.15 billion. 

The post Woolworths share price slides following MyDeal ACCC nod appeared first on The Motley Fool Australia.

Consumer discretionary has been a tough space in FY22, but there are several ASX retail shares that have delivered big returns.

These companies have managed to defy waning consumer sentiment triggered by the rising cost of living.

The higher-for-longer inflation, interest rate hikes, and falling asset prices are major risk factors for the sector.

Small-cap ASX retail shares outperforming the big end of town

This explains why some of our biggest ASX retail shares have slumped by 20% or more in the past year. This includes the JB Hi-Fi Limited (ASX: JBH) share price and Wesfarmers Ltd (ASX: WES) share price.

However, there have been a number of retail gems at the smaller end of the market that have delivered double-digit returns in the past financial year.

I am not talking about illiquid micro-caps, where a single trade can drive their share prices into the stratosphere. These are ASX consumer discretionary shares with a market cap of at least $100 million.

The top-performing ASX retail shares in FY22

What's more, you probably haven't heard of some of these names. And in another blow to our Aussie ego, a few of these are New Zealand businesses listed on the ASX!

The best performing ASX retail share in FY22 is Mydeal.Com Au Ltd (ASX: MYD). The online retailer surged just over 60% over the financial year.

What really helped was Woolworths Group Ltd (ASX: WOW) buying an 80% interest in the company as opposed to operational growth. But a win's a win!

The second top performer for the year is NZME Ltd (ASX: NZM). The Kiwi media and entertainment group managed to deliver a 41% increase in share value.

This will be enough to embarrass its Aussie peers like Nine Entertainment Co Holdings Ltd (ASX: NEC) and Seven West Media Ltd (ASX: SWM). Nine fell 29% while Seven is about flat over the period.

More Kiwis beating the Aussies

But NZME isn't the only New Zealand media share to be shooting the lights out. In third spot is the SKY Network Television Limited (ASX: SKT) share price with its gain of around 32% for the year.

Adding insult to Aussie injury is New Zealand-founded jeweller Michael Hill International Ltd (ASX: MHJ). The ASX retail share jumped around 27% in value thanks to strong sales across all of the company's markets and its ability to hold margins.

Meanwhile, the Supply Network Limited (ASX: SNL) share price isn't far behind with a gain of around 24%. This is no doubt helped by the Australian and New Zealand auto parts retailer issuing a pleasing FY22 sales and profit guidance.

The post Top 5 outperforming ASX retail shares in FY22 that you may not have heard of appeared first on The Motley Fool Australia.

The Woolworths Group Ltd (ASX: WOW) share price lifted after the company offered to buy MyDeal.com.au Ltd (ASX: MYD) on Friday.

But could the S&P/ASX 200 Index (ASX: XJO) company's latest attempt to get onto the online marketplace scene put the Woolworths share price in the 'buy' zone?

Is Woolworths a buy after MyDeal offer?

Brokers are sceptical of Woolworths latest acquisition attempt despite the company's share price trading in the green following its announcement.

The supermarket giant has offered to buy an 80% stake in MyDeal for around $218 million – or $1.05 per share. The proposal values the business at $271.8 million.

Woolworths' offer represents a 62.8% premium on the MyDeal share price's previous undisturbed close. Perhaps unsurprisingly, stock in the online marketplace rocketed nearly 56% on Friday.

Woolworths' intent to snap up MyDeal might remind readers of Wesfarmers Ltd (ASX: WES)'s 2019 acquisition of Catch.com.au. It might also raise eyebrows after the supermarket giants' unsuccessful attempt to integrate EziBuy into its Big W brand. After acquiring EziBuy in 2013, Woolies offloaded it in 2017.

What are the experts saying?

Barrenjoey analyst Tom Kierath is reportedly perplexed about the proposed transaction.

He questioned why Woolworths would pay such a premium for MyDeal. Particularly as the online marketplace suffered a $5.8 million loss last financial year, The Age reports.

If [MyDeal] didn't make money through the COVID period, will it ever?

Barrenjoey's Tom Kierath, as quoted by The Age.

The analyst also noted the supermarket giant has previously struggled to make profits in non-food businesses. It has racked up notable failures in Dick Smith and Masters.

Morgans analyst Alex Lu is also reportedly sceptical. Lu noted the transaction comes as many Australians worry about the cost of living – which could dampen demand for general merchandise – according to the newspaper.

Meanwhile, Citi is reportedly drawing parellels between Woolworths' bid for MyDeal and its EziBuy flop.

"Both businesses are not market leaders and we are also concerned that visibility on MyDeal's performance will be low once consolidated as EziBuy's was previously," The Australian quoted Citi analyst Adrian Lemme as saying.

The broker has a $40.30 price target and a 'buy' rating on Woolworths shares.

Woolworths share price snapshot

The Woolworths share price has struggled through 2022 so far.

It has tumbled 8.1% year to date. Meanwhile, the ASX 200 has slumped 5.8%.

In early trading on Monday, shares in the supermarket giant are up 0.11% at $35.39.

However, the company and the index have recorded respective gains of 0.3% and 1.4% over the last 12 months.

The post Is the Woolworths share price a buy following the latest acquisition or a no deal? appeared first on The Motley Fool Australia.

The Woolworths Group Ltd (ASX: WOW) share price is in the green on Friday after the company announced its intent to acquire ASX-listed online marketplace operator MyDeal.com.au Ltd (ASX: MYD).

It comes as the broader market shakes off some of its Thursday losses.

At the time of writing, the Woolworths share price is $35.37, 0.54% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.05% right now. Meanwhile the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) is 0.32% higher.

Let's take a closer look at what's going on with the supermarket giant on Friday.

Woolworths share price rises on Friday

The Woolworths share price is lifting after the company announced its plan to acquire an 80% stake in MyDeal for around $218 million.

It has offered to purchase shares in the online retailer for $1.05 apiece, The Motley Fool Australia reported this morning.

That represents a premium of nearly 63% on the MyDeal share price's previous close.

Meanwhile, the ASX 200 and the consumer staples sector are shaking off yesterday's losses. They dumped 1.65% and 3.71% respectively on Thursday as warning bells sounded for retailers in the US.

Interestingly, today's recovery follows an extension of Wall Street's losses overnight.

It might have been spurred by expectations restrictions in Shanghai – where most of China's current COVID-19 outbreak is housed – could soon ease, the Australian Financial Review reports.

That's good news for the global market. Fewer restrictions in the region could help bolster economic growth.

China's unemployment rate reached 6.1% and its total retail sales slumped 11.1% as the nation suffered through lockdowns last month, the National Bureau of Statistics of China announced earlier this week.

The post Woolworths share price lifts following $218m online marketplace deal appeared first on The Motley Fool Australia.

The MyDeal.com.au Ltd (ASX: MYD) share price is launching upwards this morning after Woolworths Group Ltd (ASX: WOW) offered to buy most of the online marketplace's shares at a 63% premium.

The supermarket giant tabled a proposal to buy 80.2% of MyDeal shares for $1.05 apiece.

The MyDeal share price closed Thursday's session trading at 65 cents.

At the time of writing, it has surged to reach $1, representing a 55.81% gain.

Let's take a closer look at the takeover proposition boosting the online retailer's stock today.

Woolworths proposes MyDeal takeover

The MyDeal share price is leaping on Friday after S&P/ASX 200 Index (ASX: XJO) giant Woolworths offered to snap up most of the company's stock for $1.05 per share.

Woolworths' offer values MyDeal's equity at $271.8 million and implies an enterprise value of $242.6 million.

It will also provide investors who got in on the online marketplace provider's 2020 initial public offering (IPO) – wherein shares were offered for $1 – a 5% gain on their investment.

The MyDeal board are recommending shareholders vote in favour of the proposition. That is, unless a better offer comes along or an independent expert rules it's not in shareholders' best interests.

Investors representing around 76% of the company's stock have voiced their intent to vote in favour of Woolworths' takeover. That includes CEO Sean Senvirtne, who currently holds a 47.3% stake in MyDeal.

All the takeover goes to plan, Senvirtne will sell 60% of his holding and walk away with an 18.9% stake.

MyDeal chief product officer Kate Dockery and chief merchandising officer Dean Ramler will also retain stakes of 0.5% and 0.4% respectively.  

Senvirtne commented on the news driving the MyDeal share price sky high today, saying:

[The acquisition] will help support the growth of our retail platform by accessing Woolworths Group's capabilities across e-commerce, supply chain, retail, loyalty and more.

The companies expect shareholders to vote on the transaction next quarter with MyDeal earmarked to be delisted after its implementation.

MyDeal share price snapshot

Today's gains have boosted the MyDeal share price back into the long-term green.

It is now trading 34% higher than it was at the start of 2022. It's also nearly 83% higher than this time last year.

The online retailer listed at the height of the COVID-19 online shopping boom. Its highest-ever close – at $1.71 – came on the evening following its float. The stock is currently trading 41% lower than that point.

The post Here's why the MyDeal share price is rocketing 56% today appeared first on The Motley Fool Australia.

The Woolworths Group Ltd (ASX: WOW) share price is on watch on Friday after the company announced its intent to acquire 80% of online marketplace MyDeal.com.au Ltd (ASX: MYD).

The supermarket giant has proposed to pay $1.05 per share for the online retail store. That represents a 62.8% premium on MyDeal's last closing price of 65 cents.

As of Thursday's close, the Woolworths share price is $35.18.

Let's take a closer look at the S&P/ASX 200 Index (ASX: XJO)'s giant's proposed acquisition.

Woolworths share price on watch amid acquisition news

The Woolworths share price could be in for a big day following news it's planning to take an 80.2% holding in MyDeal.

The online retail marketplace focuses on household goods such as furniture and homewares. It hosts around 1,900 sellers and six million products.

MyDeal brought in $260 million over the 12 months ended 31 March. Woolworths' $1.05 per share offer values MyDeal's equity at $271.8 million and its enterprise value at $242.6 million.

The ASX 200 company believes MyDeal will enhance its marketplace capabilities and complement BIG W's offerings.  

Woolworths CEO Brad Banducci commented on the news that could drive the company's share price today, saying:

The addition of MyDeal to Woolworths Group represents a further step towards delivering a more holistic customer experience in food and everyday needs and materially expands our marketplace capabilities, especially in general merchandise.

If Woolworths' proposition is successful, 19.8% of MyDeal will be held by key management shareholders. CEO Sean Senvertne will hold an 18.9% stake.

The MyDeal board recommends shareholders vote in favour of the takeover as long as no better offer is tabled and an independent expert grants their tick of approval.

Senvertne currently holds 47.3% of MyDeal shares and intends to vote the stake in favour of the acquisition.

Additionally, two major MyDeal shareholders ­– controlling a combined 28.6% stake ­– have also voiced their intent to vote 'yes'.

The transaction is expected to be voted upon next quarter and MyDeal delisted thereafter.

The post Woolworths share price in focus on MyDeal acquisition proposal appeared first on The Motley Fool Australia.

With that in mind, here are three small cap ASX shares that analysts rate highly:

Ai-Media Technologies Ltd (ASX: AIM)

The first small cap ASX share to watch is Ai-Media Technologies. This global media access provider's cloud-based technology platform offers live and recorded captioning, transcription, subtitles, translation and speech analytics. And these services are certainly in demand! So much so, globally, Ai-Media technology delivers 7 million minutes of live and recorded media content, and online events and web streams every month. Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies' shares.

Mydeal.Com Au Ltd (ASX: MYD)

Another small cap to watch is MyDeal. It is an online retail marketplace focused on home and lifestyle goods. At the end of FY 2021, MyDeal had more than 1,800 sellers on its platform with over 6 million product SKUs listed across over 2,000 categories. And with its customer numbers nearing 1 million, the company looks well-placed to benefit from the shift to online shopping over the long term. The team at Morgans is positive on the company's outlook and has an add rating and 90 cents price target on its shares. It feels MyDeal would be a good option for investors that want exposure to a high growth ecommerce opportunity with a strong balance sheet.

SILK Laser Australia Limited (ASX: SLA)

A final small cap ASX share to watch closely is SILK Laser. It is one of Australia's largest specialist clinic networks, offering a range of nonsurgical aesthetic products and services. SILK's five core offerings comprise laser hair removal, cosmetic injectables, skin treatments, body contouring and skincare products. Demand has remained strong for its services during the pandemic, underpinning stellar sales and profit growth. The good news is that management still sees significant room to expand its clinic over the next decade. This gives it a long runway for growth. Wilsons is bullish on SILK and has an overweight rating and $5.25 price target.

The post 3 exciting small cap ASX shares analysts rate highly appeared first on The Motley Fool Australia.

The MyDeal.Com Au Ltd (ASX: MYD) share price has been gradually recovering since May. A continuation in revenue growth has put the online retail marketplace in a good light. While the company is operating in a space filled with formidable foes, some investors are taking a liking to the smaller competitor.

Sydney-based private investment company EGP Capital is one such investor that is bullish on the MyDeal share price. The reasoning behind EGP Capital's positive outlook for the company was shared in the fund's October report.

Let's jump into the details.

What makes the MyDeal share price worth looking at?

The team behind EGP Capital's Concentrated Value fund are big backers of numerous ASX-listed retail-focused businesses. For example, Cettire Ltd (ASX: CTT), Redbubble Ltd (ASX: RBL), and MyDeal all make an appearance in the fund's top 10 holdings.

According to the fund's October report, rather than backing the larger online retailers, EGP is keener on the prospects ahead for MyDeal — with a market capitalisation of ~$225 million.

Chief investment officer (CIO) Tony Hansen detailed several reasons why the fast-growing retailer play is attractive. The first reason is the incentive structure in place for the MyDeal CEO and founder, Sean Senvirtne. Nearly half of the company's shares are owned by Senvirtne.

However, the primary reason for EGP Capital's interest in the MyDeal share price is the marketplace element. This involves connecting buyers with sellers through the company's online platform, taking a fee from the transaction in the process.

Hansen notes that the cash flow generated by this business segment alone allows the business to grow without the need for external capital.

How does it compare to another online retailer?

Because of its capital-light nature, the fund prefers to compare MyDeal to Temple & Webster Group Ltd (ASX: TPW). In comparing the two, Hansen and the team believe that the smaller online retailer could be worth ~$1.40 if it were valued similarly to Temple and Webster.

Hansen came to this conclusion by comparing the companies enterprise value over gross margin (EV/GM). For Temple and Webster, this equates to ~7 times. Meanwhile, MyDeal's EV/GM comes out to around 3 times.

Finally, EGP Capital suggests that if MyDeal can demonstrate revenue growth and profitability over several quarters, then it might attract a more premium valuation. For investors, this would translate to a higher MyDeal share price.

MyDeal shares are down 32% since the beginning of the year. Coming off of a booming time for online retailers during COVID-19, the company has failed to maintain the momentum.

The post This fund manager thinks the MyDeal (ASX:MYD) share price is appealing appeared first on The Motley Fool Australia.

With that in mind, here are three small cap ASX shares that could be worth watching closely:

Ai-Media Technologies Ltd (ASX: AIM)

The first small cap to watch is Ai-Media Technologies. It is a global media access provider with operations across the ANZ, North American, EMEA and Asia markets. The company's cloud-based technology platform provides live and recorded captioning, transcription, subtitles, translation and speech analytics. Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies' shares.

Mydeal.Com Au Ltd (ASX: MYD)

Another small cap to watch is MyDeal. It is an online retail marketplace focused on home and lifestyle goods. MyDeal currently has more than 1,800 sellers on its platform with over 6 million products listed across over 2,000 categories. Thanks to this strong offering, its growing active customer base, and the shift online, MyDeal reported a 111% increase in gross sales to $218.1 million and a 119% jump in gross profit to $33.3 million in FY 2021. It has since built on this, reporting a 49% quarter-on-quarter increase in gross sales to $68.5 million during the first quarter. Also continuing to grow were its customer numbers, which had reached ~930,000 at the end of the period. The team at Morgans is positive on the company's long term outlook and has an add rating and 90 cents price target on its shares.

Serko Ltd (ASX: SKO)

A final small cap to watch is Serko. It is an online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. Serko's Zeno Travel platform provides AI-powered end-to-end travel itineraries, cost control, and travel policy compliance to corporate customers. Whereas Zeno Expense allows businesses to automate and streamline their expense administration function, identify out-of-policy expense claims, and prevent fraud. With travel markets rebounding and a major deal with travel giant Booking.com recently commencing, Serko appears well-placed for growth in the coming years. Macquarie currently has an outperform rating and NZ$8.31 (A$8.02) price target on its shares.

The post 3 exciting small cap ASX shares for your watchlist appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are surging higher:

Mydeal.Com Au Ltd (ASX: MYD)

The MyDeal share price has jumped over 10% to 81.5 cents. Investors have been fighting to get hold of the ecommerce company's shares after it delivered a very strong first quarter update. MyDeal reported record quarterly gross sales of $68.5 million, up 49% quarter-on-quarter and 22.6% year on year. Key drivers of this growth were a 38.8% increase in active customers to 929,461 and high levels of returning customers.

Senex Energy Ltd (ASX: SXY)

The Senex share price is up 15% to $4.38. This morning the energy company revealed that Korean giant POSCO has tabled a $4.40 per share takeover approach. Due diligence has been granted to provide POSCO with additional time to assess a further revised proposal at a price higher than $4.40 per share.

Superloop Ltd (ASX: SLC)

The Superloop share price has rocketed 20% higher to $1.16. This follows news that the telco is selling its Hong Kong operations, as well as select Singapore assets for $140 million. According to the release, Superloop has entered a binding agreement with funds affiliated with Columbia Capital and DigitalBridge Investment Management. The release notes that the sale price is a 30% premium above the assets' current carrying value.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price has jumped 10% to $12.72. Investors have been buying the lithium developer's shares after it announced a new binding offtake agreement. According to the release, Vulcan has signed a binding lithium hydroxide offtake agreement with Umicore. It is a leader in cathode materials production used in lithium-ion batteries for electrified transportation. The deal is for five years from 2025 and for a total of 28,000 tonnes to 42,000 tonnes of battery grade lithium hydroxide.

The post Why MyDeal, Senex, Superloop, and Vulcan shares are surging higher appeared first on The Motley Fool Australia.

It's a bumper day for the MyDeal.com.au Ltd (ASX: MYD) share price after the company released a record first quarter update.

At the time of writing, the MyDeal share price is up 11.5% to 82.5 cents.

MyDeal share price jumps on record Q1 sales

The e-commerce business continued to make headway in the first quarter ended 30 September. Some key highlights include:

• Record gross sales of $68.5 million, up 49% quarter-on-quarter and up 22.6% on FY20
• Record active customers of 929,461, up 38.8%
• Returning customers driving transaction growth, accounting for nearly 60% of all transactions vs. 49.7% in Q1 FY21
• Positive operating cash flow of $5.5 million
• Cash balance of $47.2 million million as at 30 September with no debt

During the quarter, MyDeal commenced a brand refresh across all operating channels in a move to make "MyDeal famous and becoming the place where Australians start their shopping journey".

This included an updated company logo, typography, colour palette, and tone of voice which forms its central "MyDeal feel" to embrace the positive emotion of shopping.

Phase one of the brand strategy rollout will include an extensive multi-channel brand campaign through various mediums including TV, radio, digital broadcast channels, out-of-home, and at sporting events.

Management commentary

MyDeal CEO Sean Senvirtne was pleased with the record quarter, despite "cycling a period of unprecedented growth". Commenting on the company's growth trajectory and strategic initiatives, he said:

Through relentless focus on our key strategic initiatives, doing it 'right not rushed' and executing to plan we have been able to grow faster than the industry average. Operating in a growing and underpenetrated online household goods market within Australia, MyDeal continues to acquire more market share and will continue to thrive in the years to come.

What's next for MyDeal?

The MyDeal share price is down 32% year-to-date despite the company's strong growth trajectory.

Looking ahead, Senvirtne said that "we are looking forward to what we predict will be a highly successful 2020 … as we position ourselves to capitalise on the increased demand for online shopping."

The post MyDeal (ASX:MYD) share price jumps 11% on record first quarter update appeared first on The Motley Fool Australia.

Here's why these small cap ASX shares are ones to watch:

Ai-Media Technologies Ltd (ASX: AIM)

The first small cap to watch is Ai-Media Technologies. It is a global media access provider with operations across the ANZ, North American, EMEA and Asia markets

The company's cloud-based technology platform provides live and recorded captioning, transcription, subtitles, translation and speech analytics.

Bell Potter is positive on the company. It currently has a buy rating and $1.50 price target Ai-Media Technologies' shares. The broker was pleased with its performance in FY 2021 and remains positive on the future.

It commented: "We maintain our Buy recommendation and positive outlook on AIM. We remain attracted to AIM's long-term growth strategy driven by its ability to apply proprietary technology in providing high accuracy, near real-time voice transcription services."

Mydeal.Com Au Ltd (ASX: MYD)

Another small cap to watch is MyDeal. It is an online retail marketplace focused on home and lifestyle goods. As per the company's most recent update, MyDeal had more than 1,800 sellers on its platform with over 6 million product SKUs listed across over 2,000 categories.

This strong offering and the shift online helped drive a 111% increase in gross sales to $218.1 million and a 119% jump in gross profit to $33.3 million in FY 2021.

The team at Morgans is positive on the company's long term outlook. As a result, it currently has an add rating and 90 cents price target on its shares.

The broker said: "We don't expect MYD to turn a profit in the current year (we never did), as all this investment in growth comes at a cost. But, to us, this story is not about short-term profitability and dividends. It's about creating a market leading ecommerce platform that can be the foundation of substantial earnings growth. We appreciate this is not an investment that will appeal to everyone. But for those that want exposure to a high growth ecommerce opportunity with a strong balance sheet, we think MYD fits the bill."

The post 2 buy-rated small cap ASX tech shares you need to know appeared first on The Motley Fool Australia.

The MyDeal.com.au Ltd (ASX: MYD) share price is falling after the company released its financial year 2021 (FY21) earnings.

Right now, the MyDeal share price is 79.5 cents, 5.36% lower than its previous closing price.

MyDeal.com.au share price slumps on 1,700% drop in profit

Here's how the online retail store performed during FY21:

• $38.2 million of revenue – 144% more than that of FY20
• Loss of $5.8 million after tax ­– a 1,700% drop from FY20's $331,632 profit
• Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) came to a loss of $4 million
• Net cash flow from operations was an outflow of $3.9 million
• No dividend

While the company's FY21 results were pretty lacklustre, it wasn't all bad for MyDeal.com.au.

The company reported record gross sales of $218.1 million. It also reported its net transaction value was $204.6 million, up from $94.0 million in FY20. Additionally, its FY21 gross profit was $33.3 million, 119% more than that of FY20.

Mydeal stated its EBITDA loss was mainly driven by its increased spending on advertising and promotional activity, which is expected to support its goal of increasing customer acquisitions and investment into its private label business.

It invested $4.9 million into its private label's inventory in FY21. The private label contributed $8.8 million to the company's gross sales.

Before its private label inventory investment, MyDeal's operating cash flow was $1 million.

The company ended the period with $42.7 million cash and no borrowings.

What happened in FY21 for MyDeal.com.au?

FY21 was a big year for MyDeal and its share price with a corporate restructure in September and the company's debut on the ASX in October.

MyDeal raised $40 million through its initial public offering (IPO).

The company reported that the number of active customers increased 83% year-on-year over FY21. It ended the period with 894,225 active customers.

Repeat business also grew, with 59.4% of transactions in the fourth quarter coming from returning customers.

Customers now shop with MyDeal an average of 1.7 times per year, up from 1.5 times in FY20.

Finally, the MyDeal app represented around 10% of the company's sales over FY21. It launched in May 2021.

What did management say?

Commenting on the results, MyDeal.com.au founder & CEO Sean Senvirtne said:

FY21 represents a significant moment in MyDeal's history, a record 10 years in the making and just the beginning of what's to come… We have put ourselves in the perfect position to capture the increased demand in the market.

Now with over 1,100 active sellers, 6+ million products and a private label business on a steep incline, we continue to entrench ourselves as one of Australia's prominent online retail marketplaces for home and lifestyle products.

Senvirtne said MyDeal continued to scale by leveraging its proprietary technology across sellers, products and sales and "continuously refining the user experience".

We invest in efficient customer acquisition and retention strategies to accelerate active customer growth, while attracting marketplace sellers and investing in our private label offering to expand our range of products across in-demand categories.

Promoting and further optimising the app will remain a key feature of our strategy going forward.

What's next for MyDeal.com.au?

Here's what might drive the MyDeal share price in FY22:

While MyDeal didn't provide guidance for FY22, the company pledged to provide regular business updates.

It stated FY22 was off to a good start and noted its soon-to-launch multi-channel brand and advertising campaigns.

MyDeal said it would keep focusing on customer acquisition and its private label business in FY22.

MyDeal share price snapshot

The MyDeal share price has slipped 54% since its first close on the ASX. It is also currently 20.5% lower than its prospectus' offer price of $1 per share.

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It's been roughly 16 months since the COVID-19 pandemic took hold in Australia, spurring the public to embrace new ways of living. And what takes hold in the public sphere generally makes it to the market.

While some of us were stuck at home, several Initial Public Offerings (IPOs) hit the market ready to take advantage of popular cultural shifts triggered by lockdowns. But, it seems, all trends must come to their natural end.

Does Youfoodz Holdings Ltd's (ASX: YFZ) takeover offer mark the end of the bubble of share price gains for commerce and consumer convenience companies?

Yesterday, Youfoodz recommended its shareholders accept a scheme implementation arrangement pitched by its competitor Hellofresh that would see those who bought into the company at its IPO lose 38% of their investment.

An analysis by the Australian Financial Review's Tom Richardson claims it's a sign a pin is coming for the COVID-19 shares bubble.

Can COVID-19 IPOs stand the test of time?

In March 2020, when the door to the outside slammed shut, many Australians took to freshly propagandised trends.

Maybe you gained a solid appreciation of sourdough, whipped coffee, and at-home fitness programs. Or, perhaps, you spent hours on TikTok, splashed out on food delivery services, and perused the never-ending catalogue of online retail.

While the world was staring out the window, the ASX was awash with IPOs making the most of the boom in convenience services and e-commerce.

Ready-made meal provider Youfoodz debuted on the ASX in December, just months after e-commerce companies Adore Beauty Group Ltd and Mydeal.ComAu Pty Ltd did the same.

The Youfoodz share price's journey

Youfoodz' prospectus outlined that it had never raked in a profit. However, it aimed to list with a market capitalisation of around $201 million, selling its shares for $1.50 during its IPO.

But the Youfoodz share price never hit $1.50 on market. Its highest point saw its shares swapping hands for $1.32.

Youfoodz' shares have fallen 13.8% since their first session on the ASX — when they closed at $1.05.

Now, its board has unanimously recommended shareholders accept Hellofresh's offer of 93 cents per share.

That represents an 82% premium on the Youfoodz share price's previous close but a 38% discount on its share price in its prospectus.

Other shares that debuted during COVID-19

As Richardson points out, online retailers Adore Beauty and Mydeal have also flopped dramatically from their IPO share price.

Adore Beauty placed a $6.75 price tag on its shares during its October IPO. The Adore Beauty share price soared to $6.92 on its first day on market but has since dropped 24.7%.

Mydeal also completed its IPO in October. Investors could buy Mydeal shares for $1.00 at that time. Despite hitting as much as $2.20 during its first session on the ASX, the Mydeal share price has since fallen 59.1%.

Richardson believes when vaccines came to fruition, the market began seeking stable, long-term investments, leaving the COVID-19 fads behind.

Whether the new downward trend will continue for companies like Youfoodz, Adore Beauty, and Mydeal is yet to be seen.

Youfoodz share price snapshot

Youfoodz' time on the ASX has been a rollercoaster ride – its share price has fallen 13% since it listed.

The company has a market capitalisation of around $122 million, with approximately 134 million shares outstanding.

The post Could the Youfoodz (ASX: YFZ) takeover offer indicate a bubble? appeared first on The Motley Fool Australia.

Here's why these small cap ASX shares are ones to watch:

Damstra Holdings Ltd (ASX: DTC)

The first small cap to watch is Damstra. It is a growing integrated workplace management solutions provider which provides a cloud-based workplace management platform that is used by businesses globally. Its platform allows users to track, manage, and protect their workers and assets. Demand has been growing strongly in recent years and has continued in FY 2021. For example, during the third quarter, Damstra's revenue increased 66% on the prior corresponding period to $6.9 million. This followed its highest ever monthly revenue in March and was underpinned by a 61% increase in active users to 689,000.

MyDeal.com.au Limited (ASX: MYD)

Another small cap to look at is MyDeal.com.au. It is an online retail marketplace with a focus on homewares, furniture, and technology. Like other ecommerce companies, MyDeal has been growing strongly over the last 12 months. This led to the company recently reporting full year sales growth of 111.1% to $218.1 million for the 12 months ended 30 June. This was underpinned by an 83.1% increase in customer numbers to 894,225 and significant momentum in Private Label sales during FY 2021.

Pointerra Ltd (ASX: 3DP)

A final small cap share to watch is Pointerra. It is a technology company that provides a powerful cloud-based solution for managing, visualising, and sharing massive 3D point clouds and datasets. Pointerra's platform is able to extract vital information from the data that would otherwise take many hours to do. At the end of April, the company's annualised contract value (ACV) stood at US$7.89 million. This is still only a very small fraction of a total market opportunity that management estimates is worth US$500 billion.

The post 3 growing small cap ASX shares to watch closely appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are charging higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 4% to $119.51. This appears to have been driven by a solid night of trade on the tech-heavy Nasdaq index following the softening of bond yields. It isn't just the Afterpay share price pushing higher. The S&P/ASX All Technology Index (ASX: XTX) is up a sizeable 2.3% at the time of writing.

Challenger Ltd (ASX: CGF)

The Challenger share price has jumped 8% to $5.93. Investors have been buying the annuities company's shares after it announced a new major shareholder. This follows the signing of an agreement by US-based retirement services company Athene to acquire a 15% minority interest in Challenger from Caledonia (Private) Investments. Athene paid $6.00 per share, which represents a premium of 9.7% to Challenger's last close price.

Mydeal.ComAu Pty Ltd (ASX: MYD)

The MyDeal share price is up 7% to 68.5 cents. Investors have been buying the ecommerce company's shares following the release of its full year sales update. According to the release, MyDeal achieved gross sales of $218.1 million for the 12 months ended 30 June. This represents a 111.1% increase over the prior corresponding period. Management advised that this was driven by an 83.1% increase in customer numbers to 894,225.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 3% to $1.90. This appears to have been driven by a rise in the gold price overnight. This follows the easing of bond yields on Tuesday night, which has given the precious metal and gold miners a boost. At the time of writing, the S&P/ASX All Ords Gold index is up 1.35%.

The post Why Afterpay, Challenger, MyDeal, & St Barbara shares are charging higher appeared first on The Motley Fool Australia.

At the time of writing, the ecommerce company's shares are up 20% to 77 cents.

Why is the MyDeal share price charging higher?

Investors have been bidding the MyDeal share price higher today following the release of an update on its performance in FY 2021.

According to the release, the company achieved gross sales of $218.1 million for the 12 months ended 30 June. This represents a 111.1% increase over the prior corresponding period. Management advised that this was driven by an 83.1% increase in customer numbers to 894,225 and significant momentum in private label sales. The latter contributed $8.8 million to gross sales in FY 2021 following a soft launch late in FY 2020.

MyDeal's CEO, Sean Senvirtne, notes that MyDeal is growing at above industry rates. He believes this is being driven by the company continually building on its value proposition of providing superior value to customers and marketplace sellers.

He added: "We have placed ourselves in an enviable position to harness the increased demand and ongoing transition to e-commerce, with active customers now exceeding 894,000. Growing the active customer base signifies the trust consumers have placed in our products, brands and shopping experience."

Mr Senvirtne also revealed that the launch of its mobile app has been a success and expects it to support its future growth.

He said: "Since the launch of the MyDeal app in May, it has been extremely well received, being highly rated and highly utilised. We already see a higher customer conversion rate coming through, which makes me very excited about the future of this platform and its contribution to our growth."

"Our Private Label business has delivered a strong Gross Sales contribution and continues to grow. We remain focussed on building and augmenting our proprietary technology platform which is proving to be a core scalable asset of the business, and have invested in securing high calibre talent across all teams. The future of MyDeal is brighter than ever," he concluded.

The post Why the MyDeal (ASX:MYD) share price is jumping 20% today appeared first on The Motley Fool Australia.

The MyDeal.com.au Ltd (ASX: MYD) share price is soaring after the company announced the launch of its native mobile apps for iOS and Android.

At the time of writing, the MyDeal share price is trading at 71 cents, up 4.4%. The online retail marketplace has a lot of work to do after sliding almost 60% since its ASX debut on 22 October. 

MyDeal ticks off another growth initiative 

Back in the first half of FY21, the launch of native apps was a key growth initiative to improve the mobile shopping experience, reduce marketing and increase customer retention. Mobile apps represent a significant growth opportunity with approximately 75% of website visits coming from mobile or tablet devices, according to Google Analytics. 

The MyDeal native apps will enable its current 833,000 active customers a seamlessly shop from its range of 6 million home and lifestyle products.

The app provides users with additional mobile-specific features and offerings including app-specific discount coupons, notifications for offers, shop-by-room navigation, product cross-sharing to social media apps and seamless checkout management. 

Management commentary

MyDeal founder and CEO Sean Senvirtne commented on the app launch, saying: 

Operating a leading online retail marketplace for home and lifestyle products, we understand that providing a seamless customer experience is vital, no matter how users choose to access our platform.

The native apps are a key part of our growth strategy of improving conversion and retention rates by continually refining the customer experience and optimising the site, harnessing the data from different channel usage across our platform and more effectively personalising our interactions and offers for customers.

Why the MyDeal share price is struggling 

Its been a challenging market for initial public offerings (IPOs), where shares more often than not go downhill after the first day of listing. Some recent examples include the likes of Youfoodz Holdings Ltd (ASX: YFZ), Payright Ltd (ASX: PYR) and Zebit Inc (ASX: ZBT). 

Furthermore, ASX e-commerce shares across the board have struggled amidst a period of tough comparisons against supercharged COVID-19 sales from last year. E-commerce shares including Kogan.com Ltd (ASX: KGN) and Redbubble Ltd (ASX: RBL) have fallen a respective 41% and 32% this year as growth moderates. 

The post The MyDeal (ASX:MYD) share price is flying today. Here's why appeared first on The Motley Fool Australia.

The Credit Clear Ltd (ASX: CCR) share price has been unable to impress the market so far on Thursday despite announcing a solid third quarter update.

At the time of writing, the Credit Clear share price is down 3%, trading at 66 cents after spending the entire morning in the red.

Credit Clear operates in the receivables management industry, defined by the ACCC as when "creditors and collectors seek to secure payment from consumers of businesses who are legally bound to pay or repay money they owe".

The company aims to disrupt the industry's current operating model by applying its technology to improve a clients' collection experience and financial outcomes. 

Why is the Credit Clear share price lower today?

The Credit Clear share price has struggled to find headway on seemingly positive financial and operational results in the third quarter. The company reported that overall revenue was up by 35% over the previous quarter to $2.8 million, driven by a 76% increase in digital revenue.

Growth in digital revenue is accelerating and now accounts for 37% of total revenue compared to the 28% reported in the second quarter. The company is pleased with the accelerating growth in digital streams as it confirms the continuing acceptance and adoption of Credit Clear's SaaS debt recovery platform over traditional debt collection methods. 

The company is pushing growth on all fronts with meaningful contract wins and discussions with large insurance, education, automotive finance and utilities clients.

During the quarter, the company secured Suncorp Group Ltd (ASX: SUN) as its first major insurance sector client. The signing will have an initial contract term of two years with the company receiving an $800,000 advancement payment. 

Credit Clear is riding the tailwinds of its flagship Suncorp deal, and is currently engaged with four additional major insurers about implementing its digital platform. 

Despite the quarterly result ticking all boxes with solid revenue growth, key contract wins and a strong pipeline of potential clients, the Credit Clear share price remains slumped at 66 cents. 

Why the Credit Clear share price is struggling this year

The Credit Clear share price has slipped 11% year-to-date despite positive announcements from the business. 

Could the lack of recent upside to the Credit Clear share price have something to do with its initial public offering back in October 2020? The company had a listing price of 35 cents but ran as high as $1.20 within four days of going public.

Credit Clear made its ASX debut during a period where IPOs were running hot. Notable listings late last year include Douugh Ltd (ASX: DOU), MyDeal.com.au Ltd (ASX: MYD) and Adore Beauty Group Ltd (ASX: ABY).

These shares have experienced a similar share price performance where all-time highs were recorded during the first few days of listing, followed by a sharp selloff and grinding back and forth ever since. 

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