It has been a rollercoaster year for EchoIQ Ltd (ASX: EIQ) shares.

The ASX tech stock has been as low as 17 cents and as high as $1.88.

On Wednesday, the medical technology company’s shares are fetching 66 cents, down around 65% from their high.

Is this pullback a buying opportunity for investors? Let’s see what Bell Potter is saying.

What is the broker saying?

Bell Potter notes that EchoIQ is trying to help with early identification of heart failure, which is a big market.

However, things have not been going to plan, with disappointing feedback from the US FDA recently. It explains:

The unmet need for a diagnostic aid to early identification of heart failure remains acute. Tens of thousands each year progress silently from asymptomatic disease to first symptoms, which may include modestly swollen ankles and the occasional shortness of breath, through to later stage heart failure, by which time it is too late to significantly slow the disease or better yet stop its progression all together. EchoSolv HF still has the potential to fill this void. 

Providing clarification of our previous assumption, data from the Mayo Validation Study underpinned the recent 510(k) application for registration of EchoSolv HF. The Mayo Clinic Platform is a highly regarded research institution in the US and for this reason the conclusions from the 17,000 patient confirmatory study which met the clinical endpoints and reported 99.5% sensitivity and 91% specificity for detection of early stage heart failure should have been a slam dunk for regulatory approval – or so we thought. The market was caught off guard when the FDA issued a ‘Not Substantially Equivalent’ notice earlier this month.

Should you buy this ASX tech stock?

According to the note, the broker has retained its speculative sell rating and 30 cents price target on the ASX tech stock.

Based on its current share price of 66 cents, this implies potential downside of almost 55%. 

Commenting on its bearish view of the stock, Bell Potter said:

The vacuum of data relating to EchoSolv HF is a frustration. The peer reviewed paper of the Mayo Validation Study is not yet published and the company is yet to release any substantial details regarding the nature of the matters raised in the Not Substantially Equivalent notification. Accordingly there remains insufficient data from which to make an objective assessment of these factors. 

For these reasons we maintain our highly conservative valuation and Sell (Speculative) recommendation. EIQ remains adamant there is a clear path forward to obtaining FDA clearance for EchoSolv HF, however the market release of 17 September actually identifies several options. Clearly a lot of work yet to do.

The post Down 65%: Is it a good time to buy this exciting ASX tech stock? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Scott Phillips.

Seek Ltd (ASX: SEK) shares are a popular option for Aussie investors and feature in countless portfolios and self-managed superannuation funds (SMSFs).

But are they a good option at present? Let’s see what Bell Potter is saying about the ASX 200 share after it declined almost 60% over the past 12 months.

What is the broker saying?

Bell Potter highlights that there was a decline in job ads in August. And with the Reserve Bank of Australia (RBA) suggesting that unemployment needs to rise to combat inflation, the broker has concerns over Seek’s outlook. It said:

SEK’s job ad volume index for August has outlined a -5.3% decline YoY, which compares against the counted stock from the ANZIndeed Index increase of +7.8%. The Internet Vacancy Index (IVI) August print, which is a direct comparison of job ads to SEK’s index as a measure of volume flow, is released Wednesday 23 rd Sep; NAB’s Economics and Markets Research team is anticipating a slight rise in employment by +20k and a fall in unemployment to 4.4% at the ABS August labour force release on Thursday 24th Sep, which appears in-line with RBA governor Michelle Bullock’s recent commentary around higher unemployment as a lever to reduce inflation, targeting between 4.5% to 5.0%, having previously attempted to protect job gains.

After looking through recent job ad data, Bell Potter has reduced its estimates for volumes and earnings per share. It explains:

A significant divergence is opening between industry job ad flow YoY; the largest decline was Government & Defence (-20.3%), likely a response to recent political and budget pressures, followed by -14.1% for Education and Training and -13.7% for Real Estate and Property. These are being somewhat offset by +14.3% in Engineering, 11.6% in Mining, Resources & Energy, and +10.7% in Construction, understandably driven by the commodities cycle and data centre/AI build out. 

AI-related skill demand grew 3.9% MoM and 66.2% YoY; jobs with a higher automation risk declined -12.3% YoY in August compared with medium at -6.1% and low -1.8%. We reduce our volumes expectations to -2% (prev. flat) in both ANZ and Asia for FY28, reflecting the increasingly global hawkish backdrop and in-line with extending expectations to bring inflation back to target ranges. Net impact to EPS is downgrades of -7% in FY28e and -7% in FY29e.

Should you buy this ASX 200 share?

According to the note, the broker has retained its hold rating on the ASX 200 share with a trimmed price target of $13.00 (from $13.80).

Based on its current share price of $12.11, this implies potential upside of approximately 7%.

Commenting on its recommendation, Bell Potter said:

We await a positive shift in sentiment or visibility on jobs volumes recovery; potential near term Growth Fund monetisation remains an asymmetric upside risk, though the rising interest rate backdrop may also be an additional headwind in seeking a desired exit price for nominated assets. SEK appears to be improving operations to sustainably target 10% yield growth on top of strong cost controls, however, despite trading at deep value ex. Growth Fund, macro-based headwinds suggest difficult sentiment near-term for the stock. Maintain Hold.

The post Is this ASX 200 share a bargain after crashing to $12? appeared first on The Motley Fool Australia.

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Imagine receiving $50,000 a year without having to work for it.

That could make a huge difference to your lifestyle, particularly if you are approaching retirement or hoping to work fewer hours.

And while building a portfolio capable of producing this much income will take time, ASX shares could help you get there.

Here’s how it could be done.

Start by building wealth

The first thing to understand is that a $50,000 passive income requires a substantial investment portfolio.

If the goal is to generate this income from dividends with an average dividend yield of 5%, you would need approximately $1 million invested.

That might sound intimidating, but nobody needs to start with $1 million.

In fact, the early years should probably be focused on growing the portfolio rather than generating income.

This could mean investing in quality ASX growth shares such as Goodman Group (ASX: GMG), ResMed Inc (ASX: RMD), and Xero Ltd (ASX: XRO).

Blue chip shares and exchange traded funds (ETFs) could also help build wealth over time.

The aim would be to own investments capable of increasing in value over many years, while reinvesting any dividends received.

Let compounding do its work

Regular investing can make a significant difference to the journey.

For example, investing $500 a month and achieving an average annual return of 10% could grow a portfolio to approximately $1 million in 30 years.

Increase that to $1,000 a month and the same target could be reached in around 23 years.

These returns are not guaranteed, and actual returns will vary from year to year, but they demonstrate how powerful regular investing and compounding can be.

Over time, an increasing portion of the portfolio’s growth can come from investment returns rather than new contributions.

Turn the portfolio into an income generator

Once the portfolio approaches $1 million, investors could start shifting their focus towards ASX dividend shares.

That could include infrastructure companies such as APA Group (ASX: APA) and Transurban Group (ASX: TCL), which own assets capable of generating cash flow over long periods.

Property investments such as HomeCo Daily Needs REIT (ASX: HDN) and Charter Hall Long WALE REIT (ASX: CLW) could provide another source of income.

Established businesses such as Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) could also have a place in the portfolio.

And for investors who would rather not select every dividend share themselves, an income-focused ETF such as the Vanguard Australian Shares High Yield ETF (ASX: VHY) could be worth considering.

Final word

Overall, I think this demonstrates that the share market can be a great place to generate a passive income.

Investors just need a combination of patience, capital, and good investments. The rest will happen in time.

The post How to build a $50,000 passive income from ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group, ResMed, Woolworths Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, Transurban Group, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended Apa Group, ResMed, Transurban Group, and Xero. The Motley Fool Australia has recommended Goodman Group, HomeCo Daily Needs REIT, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.