Day: October 26, 2021

What’s happening with the Pointerra (ASX:3DP) share price today?

A yellow warning sign with black and red arrows going up and down, indicating ASX share market chaos

The Pointerra Ltd (ASX: 3DP) share price is all over the map today. The company’s shares are trading flat at 42 cents at the time of writing, having earlier posted gains of more than 7%.

Below, we take a look at the ASX tech share’s announcement on its participation in the Canaccord Genuity South-West Connect ASX Showcase. The conference takes place today and tomorrow at the Abbey Beach Resort, in Busselton, Western Australia.

What did the company report?

The Pointerra share price initially soared after the company reviewed some key metrics it’s sharing at the conference.

Those include 240% year-on-year growth in annual contract value (ACV), increasing from US$2.87 million as at July 2020 to US$9.80 million for the year ending July 2021.

The United States utility sector continues to be its strongest ACV growth segment.

Cash receipts from its customers for the 2021 financial year came in at $4.1 million, with $1.4 million of cash receipts in Q4. Pointerra said it is well funded for further organic ACV growth.

During FY21, the company also more than doubled its full-time employees, from 12 to 29.

What does Pointerra do?

Pointerra is focused on helping the management and analysis of complex 3D data. According to the release, “Analysing and sharing 3D data are long-standing challenges that have inhibited safety, security and efficiency outcomes…”

The company adds:

Pointerra’s patented cloud-deployed technology and AI-driven algorithms bring a new standard of speed, smarts, scale and on-demand access to the long-standing problem of being able to rapidly convert massive 3D datasets into analytics and insights that provide definitive answers using digital twins to manage the physical world.

Pointerra share price snapshot

The Pointerra share price is up 26% over the past 12 months, just edging out the 24% gains posted by the All Ordinaries Index (ASX: XAO) during that same time.

Pointerra shares are down 12.5% over the last month.

The post What’s happening with the Pointerra (ASX:3DP) share price today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pointerra right now?

Before you consider Pointerra, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pointerra wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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CogState (ASX:CGS) share price rockets 9% on record quarter

four excited doctors with their hands in the air

The CogState Ltd (ASX: CGS) share price is moving with gusto today following the release of its quarterly cash flow statement.

In afternoon trade, shares in the neuroscience technology company are fetching $2.40, up 9.59%.

Here’s what the company revealed in its latest announcement.

What’s sending the CogState share price higher today?

Investors are bidding up the CogState share price following a record quarterly result. The quarter, ended 30 September 2021, involved substantial growth across various metrics. Here are some of the highlights from the report:

  • Quarterly revenue of $12.3 million, up 99% year on year
  • Clinical trials sales contracts of $40.8 million, an increase of 391% year on year
  • Total revenue backlog of $130 million, up 202% year on year and a record result
  • Net cash of $23.4 million at the end of the quarter
  • Net operating cash outflow of US$0.3 million compared to US$2.2 million in the Q1 FY21

What happened during the quarter?

CogState has kicked off the new financial year with a cracking quarter. The company, which offers brain health assessments solutions, reported a record quarter in Q1.

In dollar terms, the use of its solutions in clinical trials provided the most significant increase in the company’s revenue. Out of the total $12.3 million of record quarterly revenue, $11.1 million was from clinical trials — typically to do with Alzheimer’s disease. Revenue from clinical trials grew by 93% compared to the prior corresponding period.

Meanwhile, the other portion of revenue denominated as ‘healthcare’ revenue experienced a dramatic 255% surge to $1.1 million. Clearly, shareholders are happy with this increase, as the CogState share price rallies into the afternoon.

The near tripling in healthcare revenue for the quarter was mostly attributable to the recognition of deferred revenue. This was from the licensing agreement associated with the pharmaceutical company Eisai. CogState entered a 10-year global agreement with Eisai back in October 2020 for it to market CogState’s assessment tools globally.

Furthermore, CogState executed a record $40.8 million worth of clinical trials sales contracts in Q1. This included a contract for the use of digital assessment tools in a large phase 3 Alzheimer’s disease trial. As a result, the value of clinical trials sales contracts executed in Q1 was more than the first three quarters of FY21 combined.

What did management say?

Commenting on the record quarterly result, CogState CEO Brad O’Connor stated:

The 2021 financial year was a watershed year for Cogstate and, pleasingly, the 2022 financial year has started positively. In the first quarter, Cogstate has executed almost a year’s worth of clinical trials sales contracts. This result was underpinned by the award of a large phase 3 Alzheimer’s disease study, which is being conducted as a completely virtual, decentralized trial. That trial will use Cogstate proprietary digital assessments as key endpoints in the trial.

How does the future look for the CogState share price?

Finally, in another positive for the CogState share price, the company is optimistic for the FY22 outlook. Notably, research and development spending on Alzheimer’s is expected to increase with time, putting CogState in a good position.

Hence, the company reiterated its previous full-year guidance. This includes operating expenses to range between 31% and 33%. Meanwhile, underlying operating cash flow is expected to be 30% to 35% of earnings before interest, depreciation, and amortisation (EBITDA).

The post CogState (ASX:CGS) share price rockets 9% on record quarter appeared first on The Motley Fool Australia.

Should you invest $1,000 in CogState right now?

Before you consider CogState, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CogState wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why the Creso Pharma (ASX:CPH) share price is lifting today

A woman leaps into the air with loads of energy, in a lush green field.

Shares in medicinal cannabis company Creso Pharma Ltd (ASX: CPH) are inching higher today, now changing hands at 12 cents apiece.

Today’s 4.35% gain from the open builds on the past 2 days of trading. Over this time, the company has released a set of key announcements.

Here are the details.

What’s up with Creso Pharma shares today?

Creso shares are on the move despite there being no market-sensitive information from the company today.

However, the company seems to be benefitting from announcements it made earlier in the week.

Firstly, Creso announced that it entered into an asset purchase agreement with Canadian life sciences company, ImpACTIVE. The agreement is to purchase certain assets in ImpACTIVE’s portfolio.

The purchase is set to occur through a newly formed Creso subsidiary, known as Creso ImpACTIVE Ltd.

The transaction is a scrip deal for $217,000 worth of Creso shares, valued at 11 cents a share. That’s a smidge below its current share price.

One benefit Creso claims from the transaction is that it will expand the company’s footprint in North America. Concurrently, it will reduce cross-border regulation headwinds.

Separately, the medicinal cannabis player released a prospectus covering the issuance of “bonus options” to its shareholders yesterday.

Curiously, Creso states the purpose of this issue is to reward its shareholders. But it elaborates that the options can be considered a form of financing, if they are exercised.

That’s because, under the offer the prospectus describes, Creso will receive 25 cents for each bonus option that is exercised.

So in the event all of these newly issued options are exercised at some point in the future, Creso will receive a sum just shy of $100 million.

The prospectus also allows investors to trade the contracts on any ASX market that permits the buying and selling of derivatives.

It appears that these two price-sensitive updates may be still weighing in on the Creso Pharma share price today, particularly as the trading volume of its shares today is 72.5% of its 4-week average.

Creso Pharma share price snapshot

The Creso Pharma share price has struggled this year to date, having posted a loss of 35% since 1 January.

Despite this, it has soared almost 320% over the past 12 months, well ahead of the benchmark S&P/ASX 200 Indexs (ASX: XJO) climb of about 21% in the same time.

The post Why the Creso Pharma (ASX:CPH) share price is lifting today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Creso Pharma right now?

Before you consider Creso Pharma, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Creso Pharma wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Magontec (ASX:MGL) share price leaps another 13%, up 68% in 2 days

Graphic showing yellow arrow above vertical columns indicating a rising share price

The Magontec Ltd (ASX: MGL) share price is soaring again today, bringing its gains for the last 2 days alone to a whopping 68%.

Interestingly, the company hasn’t released any price-sensitive news to the ASX since late August. Still, the market seems to be enthused by the producer of magnesium alloy ingots and magnesium and titanium anodes.

At the time of writing, the Magontec share price is 54 cents, 12.5% higher than its previous close.

Though, that’s lower than it was earlier today. The Magontec share price reached 65 cents in intraday trade today, representing a 35% single-day gain.

And it’s not alone. Many ASX magnesium-focused stocks have seen their value surge over the last few days.

Let’s look at what might be driving the company’s stock higher.

Magontec share price surges higher

The Magontec share price is taking off this week amid a potential global shortage of magnesium.

According to a group of European industry associates, the continent expects to run out of magnesium next month.

In a joint statement, 11 European entities noted the impact of China’s ongoing energy crunch will extend to Europe, which relies on the Asian nation to produce 95% of its magnesium.

According to reporting by ABC News, an electricity shortage in China has seen the country’s magnesium production slow. China’s exports of the material could potentially be cut by 10% this year as a result.

While the demand has seen magnesium producers’ stock take off this week, Magontec differs from other ASX magnesium companies.

Magontec doesn’t produce magnesium. However, it does recycle it. The company has recycling facilities in Germany and Romania and uses recycled magnesium to produce alloy ingots.

Therefore, market watchers might assume the company could continue producing alloy ingots despite a shortage of new magnesium.

Additionally, the company supplies the automotive industry, which is expected to be hit hard by the shortage.

Finally, Magontec’s Chinese Qinghai facility receives 75% of its energy needs from hydroelectricity and nearly 10% from solar power. The facility produces magnesium alloy product and, when it can be supplied with magnesium, it might have a greater chance than other producers to run during a power shortage.

However, as the company noted in its annual report, the facility operated at low volumes through financial year 2021.

The post Magontec (ASX:MGL) share price leaps another 13%, up 68% in 2 days appeared first on The Motley Fool Australia.

Should you invest $1,000 in Magontec right now?

Before you consider Magontec, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Magontec wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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