Author: therawinformant

The Zoono Group Ltd (ASX: ZNO) share price has been a very poor performer on Wednesday.

In afternoon trade the antimicrobial solutions provider’s shares are down a sizeable 9% to $1.68.

This latest decline means that the Zoono share price is now down by almost 50% since peaking at $3.29 in July.

Why is the Zoono share price sinking lower?

Investors have been selling Zoono’s shares following the release of its first quarter update this morning.

While that update reveals very strong sales growth in comparison to a year earlier, it also shows a sizeable slowdown in comparison to the last quarter.

Zoono, which sells antimicrobial hand sanitisers and sprays, reported first quarter sales of NZ$15 million. This is down 28.2% from the NZ$20.9 million it achieved in the fourth quarter of FY 2020.

If this level of sales can be maintained, it will deliver annual sales of NZ$60 million.

Judging by its share price performance today, investors may believe this isn’t enough to justify a A$300 million valuation, let alone the A$600 million market capitalisation it had in July.

What else did Zoono report?

Zoono reported positive operational cash flow for the quarter of NZ$2.8 million, down from NZ$5.3 million for the June 2020 quarter.

However, this couldn’t stop its cash at bank decreasing from NZ$10.3 million to NZ$7.5 million. Though, management notes this was driven largely by tax and dividend payments of NZ$7.5 million. Without these payments its cash balance would have been NZ$15 million.

At the end of the period the company had inventories of NZ$14.2 million available to meet current demand. Management advised that stock is held at strategic global locations to enable timely deliveries.

Should you invest?

I think investors would be better off keeping Zoono on their watchlist for now.

While I believe COVID-19 will lead to increased use of hand sanitiser over the long term, it is a highly competitive market.

In light of this, it is difficult to gauge just what level of sales Zoono will be able to maintain in the coming quarters.

As a result, I would suggest investors wait for things to settle down before trying to value the company.

In the meantime, I would sooner buy a healthcare share such as CSL Limited (ASX: CSL) ahead of Zoono.

More reading

• These 4 ASX shares have grown more than 100% this year
• Zoono (ASX:ZNO) share price jumps 9% on United Airlines deal
• Redbubble (ASX:RBL) and this ASX share have more than doubled in 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The soon-to-be-defunct Blue Sky Alternatives Access Fund Ltd (ASX: BAF) finally has a new portfolio manager. Blue Sky, which is set to morph into WAM Alternative Assets Ltd (ASX: WMA) sometime this week, has had a long and tumultuous period of maladministration over the past few years.

Wilson Asset Management bid for the company last year, and received the endorsement of Blue Sky’s weary shareholders a few months ago. Ever since, the company has been in transition mode. But this new appointment looks set to be the final chapter in Blue Sky’s history. 

WAM Bam, but thank you ma’am?

Wilson Asset Management (WAM) is about to add WAM Alternative Assets to its existing stable of 6 Listed Investment Companies (LICs), which includes the well-regarded WAM Capital Ltd (ASX: WAM), WAM Leaders Ltd (ASX: WLE) and WAM Research Ltd (ASX: WAX) companies.

Up until now, the company has remained rather coy on who will be heading this newest LIC, only telling investors last month that the person selected would be a “highly experienced and credentialed portfolio manager”.

But yesterday, WAM finally told investors that the new LIC will be headed by Dania Zinurova.

According to reporting in the Australian Financial Review (AFR), WAM recruited the investment veteran from the investment services arm of insurance and financial services giant Willis Towers Watson, where Ms Zinurova led research teams with coverage across equities, credit and alternative assets.

Regarding some of Ms Zinurova’s intentions with the new LIC, the AFR quotes Ms Zinurova as stating an “intention to steer away from traditional alternative assets such as toll roads and airports, the highly credentialled investment professional plans to look at infrastructure assets such as data centres, echoing the growth-over-value focus in sharemarkets”.

The idea is “to see where are the strong tail winds that we see in the market, for example, digital infrastructure [and] renewable energy”, the AFR quotes Ms Zinurova. “Those are assets if you look at their underlying contracts and income and capital appreciation, they would be less linked to GDP compared to more traditional infrastructure.”

Is Blue Sky worth a look today?

I think it is, for 3 reasons. Firstly, alternative assets are a useful area to explore in my view, particularly in this era of near-zero interest rates. The whole point of alternative assets is that they are less correlated to the returns of the broader stock market. This can be very useful for an investor’s portfolio. Especially if the investment is also generating substantial dividends (which WAM is known for providing).

Secondly, Blue Sky shares are still trading below their Net Tangible Asset (NTA) backing. Blue Sky’s most recent market update told investors that, as of the end of August, the fund’s NTA per share came in a $1.0823. The current Blue Sky share price if 92 cents. That’s a ~15% discount on offer right now.

Thirdly, WAM director Geoff Wilson is buying Blue Sky shares hand over fist. ASX records show Mr Wilson has purchased significant parcels of shares every day this week so far. As well as last week. If that’s not a vote of confidence, I don’t know what is.

More reading

• Get paid huge amounts of cash to own these ASX dividend shares
• 3 alternative ASX shares to buy for defensive income
• 3 ASX shares that I’d invest $1,000 into EVERY month
• 3 ASX shares I want to buy in October
• 5 ASX shares held by leading fund managers

Motley Fool contributor Sebastian Bowen owns shares of WAM Research Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) share price gained ground after its UK hospitals were allowed to treat private patients again.

The Ramsay share price inched up 0.3% to $69.01 during lunch time trade when the S&P/ASX 200 Index (Index:^AXJO) slipped 0.1% into the red.

Management said that it’s managed to vary the agreement with NHS England that allowed for the return of some capacity for private patient activity and routine NHS elective surgery.

Ramsay share price back in business

This means that Ramsay doesn’t have to keep all of its capacity reserved for COVID-19 patients, as it had to in the past.

You might think a pandemic is good for hospital operators. But it’s proven to be more of a negative as Ramsay makes more from offering treatments to non-COVID patients.

Under the changes, Ramsay may request a limit on capacity available for NHS work for each premises.

Changes in the NHS contract

The limit cannot be set below 75% generally, and not below 70% for certain premises in the London area, or below 60%  for  certain  facilities in the commuter belt outside  London.

“Ramsay will continue to receive cost recovery for its services, including operating costs, overheads, use of assets, rent and interest less a deduction for any private elective care provided,” said the company’s ASX statement.

“Ramsay will now have an opportunity to retain additional revenue on private patient activity over the course of the agreement.”

The variation in the agreement is extended to the end of 2020. But the NHS can order Ramsay to make 100% of its capacity available to the NHS with seven-days’ notice.

UK on brink of losing COVID control

That’s a good backout clause given what’s happening in the UK. The country is hit by a resurgence in coronavirus cases and its prime minister Borris Johnson is under pressure to institute a hard lockdown.

Official government data showed an extra 17,234 positive COVID cases in the past day, which brings the seven-day total to 104,810, while a further 143 people died.

Johnson introduced a tiered warning system and announced a 10PM curfew. But defiant Britons are refusing to obey, while his own party members are rebelling.

Better placed ASX healthcare stocks to COVID

The coronavirus is a double-edged sword for Ramsay, but the same can’t be said for other ASX medical stocks.

The Sonic Healthcare Limited (ASX: SHL) share price and Healius Ltd (ASX: HLS) share price are outperforming thanks to increase demand for COVID testing.

More reading

• ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay
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• Why ASX gambling shares like PointsBet (ASX:PBH) have surged in 2020
• Why the James Hardie (ASX:JHX) share price is edging higher today
• Sonic Healthcare (ASX:SHL) share price higher after COVID-19 driven Q1 profit surge

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited and Sonic Healthcare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Metcash Limited (ASX: MTS)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted the price target on this wholesale distributor’s shares to $3.80. The broker believes that its food business is well-placed to benefit from COVID tailwinds. It also notes that competition is easing after a slowdown in Aldi’s rollout and Kaufland deciding against expanding into Australia. In addition to this, it believes its hardware business will drive growth, especially given its acquisition of Total Tools. In light of this, it believes it feels its shares are cheap at the current level. I think Morgan Stanley makes some good points and it could be worth a closer look.

NEXTDC Ltd (ASX: NXT)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted their price target on this data centre operator’s shares to $14.75. This follows the release of a debt update earlier this week. That update  revealed a new debt facility which has lowered its borrowing costs materially. Overall, the broker appears confident that NEXTDC is well-placed for growth in the coming years. I agree with Macquarie and would be a buyer of its shares today.

Telstra Corporation Ltd (ASX: TLS)

Analysts at UBS have retained their buy rating and $3.70 price target on this telco giant’s shares following its annual general meeting. According to the note, the broker has lifted its dividend forecast to 16 cents per share in FY 2021 after Telstra revealed that it would be willing to amend its dividend policy in the short term to prevent a dividend cut. I think UBS is spot on with this recommendation and feel it would be a great option. Especially for income investors, given its generous potential yield.

More reading

• Could this small cap ASX telco become the next Telstra (ASX:TLS) share price? 
• Why it’s always a good time to buy blue chip ASX shares
• Is the Telstra (ASX:TLS) share price a buy for 2021?
• Why I would buy Telstra (ASX:TLS) and this ASX dividend share right now
• Why the Telstra (ASX:TLS) share price soared 4% today

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Stemcell United Ltd (ASX: SCU) share price has nearly doubled today, rising by 83.3% at the time of writing. In short, this is due to the company’s announcement of its joint venture (JV) agreement with Blue Aqua International Pty Ltd to cultivate and farm sea grapes in Singapore on a commercial scale.

The proposed JV partner, Blue Aqua International, is a one-stop solution provider for the aquaculture industry worldwide. Specifically, the group provides cutting-edge solutions for the management of the aquaculture environment and the optimisation of animal nutrition.

Stemcell United is an Australian small cap in the field of plant stem cell technology. Accordingly, it is actively researching products in industrial cannabis and Chinese herbs for use in the cosmeceutical fields. 

What moved the Stemcell share price?

Stemcell United has successfully trialled plant stem cell technology on Sea Grape cultivation at its research base located in Singapore. As a result, the joint venture combines the strengths of both parties in creating an integrated aquaculture farming system. Moreover, the collaboration aims to implement a scalable circular economy in aquaculture. This includes plans to promote the ocean vegetable’s unique qualities as a sustainable superfood and plant-based protein.

The Stemcell share price has rallied based on the potential for revenue generation within a relatively short period of time. Although the company already generates revenues, this moves it closer to becoming a profitable organisation. 

Management commentary

Mr. Philip Gu, Stemcell United CEO and Executive Chairman, commented:

SCU is honoured to be able to partner with Blue Aqua in making Sea Grapes available to the growing population on a commercial scale, and with the strong belief that Sea Grapes will become part of a recognised balanced diet mix… The COVID-19 pandemic has added additional urgency to Singapore’s food security concerns, which makes this joint venture even more compelling.

Dr. Farshad Shishehchian, Founder, Group President and CEO of Blue Aqua International commented:

The synergy with SCU is palpable. Passion and a strong technological partnership is a good recipe for sustainable growth. The joint incorporation of SCU Green Aqua Farm embodies our continual efforts to build a circular economy in aquaculture, starting with our own production systems towards the development of sustainable nutrition globally.

More reading

• Ramsay (ASX:RHC) share price firms as its UK hospitals reopen to private patients
• Top brokers name 3 ASX shares to buy today
• The Michael Hill (ASX:MHJ) share price has rocketed 11% today. Here’s why.
• Bigtincan (ASX:BTH) share price edges higher following acquisition
• What is the biggest financial regret since the pandemic?

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Michael Hill International Ltd (ASX: MHJ) share price is storming higher today following the release of its Q1 trading update for the FY21 period.

At the time of writing, the Michael Hill share price is up 10.84% to 46 cents. This compares to the All Ordinaries Index (ASX: XAO) which is down 0.1% to 6,396 points.

Let’s see how the retail jeweller performed for the first quarter of the financial year.

Q1 trading update

Michael Hill reported a solid result despite COVID-19 impacting its business operations and reducing foot traffic. For the quarter ending September 27, same store sales grew to $116.7 million, up 7.3% on the prior corresponding period. The company said it remained focused on its growth strategies to support both sales and margin.

The increased margin was attributed from 100 to 200 bps for the Q1, with gross profit growth outpacing sales. Michael Hill’s online sales also experienced an increase, up 129% with digital initiatives delivering a favourable outcome. Digital channels now represent 5.3% of total company sales.

Michael Hill’s loyalty program saw its membership base exceed 260,000 members, reflecting an 80.9% lift from June 2020.

The company said it had carefully managed capital expenditure, working capital, inventory levels, and cost of doing business. The disciplined cost focus has helped Michael Hill maintain a healthy net cash position for the quarter end.

COVID-19 store closures

At the business end of things, Michael Hill advised it closed 44 stores over Q1 period due to COVID-19. In addition, 15 more stores were dragging down group performance as a result of low foot traffic volumes.

The company has a total of 289 stores across all markets in the Australia and New Zealand.

What did the CEO say?

Commenting on the results, Michael Hill CEO Daniel Bracken said:

I am particularly pleased with our first quarter results from both a sales and margin perspective. Although experiencing double digit foot traffic decline at a store level, we achieved a significant lift in same store sales, largely attributable to a number of key initiatives delivering material improvements in conversion and ATV.

As previously reported, our emphasis has shifted from a focus on top line sales and market share recovery, to a balance of both margin and sales growth, underpinned by our strategic initiatives. It is encouraging to see so many of these strategies now flowing through to our results.

About the Michael Hill share price

The Michael Hill share price has been falling since 2016, with previous trading highs of $1.72 now at 46 cents. With a market capitalisation of $178 million, shareholders have seen their value drop by more than 70% in the last four years.

More reading

• The iSelect (ASX:ISU) share price was on the move today. Here’s why.
• Why the Spirit (ASX:ST1) share price is shooting the lights out today
• The Azure Minerals (ASX:AZS) share price has rocketed 62%. Here’s why.
• Why the Mount Gibson (ASX:MGX) share price is moving higher today
• ASX 200 Weekly Wrap: Budget, US election sparks 5% surge in ASX shares

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bigtincan Holdings Ltd (ASX: BTH) share price has edged 1.5% higher today after the company announced the completion of its acquisition of Danish sales technology company, Agnitio. The acquisition will provide the Australian sales enablement platform with additional reach into the life sciences sector. Specifically to pharmaceuticals and medical devices companies. In addition, the acquisition also brings with it 3,000 users across 45 countries and an estimated sustainable annualised recurring revenue (ARR) of A$1.6 million. 

The acquisition will be fully funded from existing cash reserves raised through the institutional placement and share purchase plan (SPP) completed in May and June 2020.

Impact on the Bigtincan share price

Aside from growing the company’s presence in Europe, the acquisition brings many strategic benefits to Bigtincan. Most beneficial over the long term, I believe, are Agnitio’s proven track record and new technology for remote selling. In addition, the acquisition provides Bigtincan complimentary technology, as well as an executive team with significant depth of experience in life sciences. 

Bigtincan saw its revenue increase by 56% in FY19 as it continues to grow into the global sales enablement market space. In addition, 95% of the company’s total revenue is ARR, with a gross margin of 85%. With these tailwinds, I believe the acquisition clearly provides a positive financial impact. In addition, it delivers a focused, go-to-market strategy with a new and active customer base for Bigtincan. I feel this will likely benefit the company’s long-term performance and, as such, the Bigtincan share price. 

Management commentary

Regarding the acquisition, David Keane, Co-founder and CEO of Bigtincan said:

Life sciences organisations are seeking new ways to engage their customers remotely while remaining compliant with local and international laws. Agnitio has pioneered the market’s most advanced virtual engagement solution specifically designed to support life sciences companies, and when added to Bigtincan’s existing market leading Sales Enablement Automation platform, will help life sciences companies interact with their customers in a virtual ‘Digital Sales Room’ environment.

CEO of Agnitio, Lars Meincke, said:

Agnitio’s core mission has been to empower sales teams, market access and medical affairs teams in today’s digital world, and we believe that together with the global Bigtincan team, we can accelerate progression towards that vision.

Foolish takeaway

This acquisition is yet another landmark for Bigtincan’s growing sales enablement platform. Specifically, it provides additional revenue channels that can continue to be built upon. Moreover, it sustains the company’s gross margins and provides it with new technology for mobile and remote sales. The Bigtincan share price has a current market capitalisation of approximately $500 million with annual revenue of $31 million.

More reading

• Why ARB, Accent, Bigtincan, & Transurban shares are dropping lower today
• Why all eyes will be on the Bigtincan (ASX:BTH) share price on Thursday
• Are these the best small cap ASX shares to buy for FY 2021?
• Why I would buy Xero (ASX:XRO) and this ASX tech share
• Why these ASX tech shares just hit record highs

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The COVID-19 pandemic has affected the markets and economy like few single events in recent history. Everything changed after the pandemic hit – markets turned from bull to bear, entire industries were obliterated, millions of jobs were lost, and the United States plunged into recession. Of course, that all takes a backseat to the devastating health effects and tragic loss of life it has caused.

It came upon Americans so fast and so furiously that few had time to process the financial implications. But roughly six months later, people have had time to reflect, and there is one major regret. A new survey by Allianz revealed that 52% of Americans regret not having more of their savings protected from market loss.

While the market did bounce back and recover all of the losses within the next six months, the US remains in a recession and there are concerns about a tech bubble or another crash. Investors who are concerned about more volatility in these uncertain times should take this opportunity to review their portfolios, while keeping one key point: that markets have always bounced back to produce strong performance in the long run.

Long-term, the numbers are on your side

The type of volatility we saw this past spring is a hard thing to stomach for many investors watching their portfolios drop 30%, 40%, 50%, or more in the span of weeks. But it provided a great example of why it is so important to ignore short-term fluctuations and stay focused on the long term. From the low on March 23, the S&P 500 Index (INDEXSP: .INX) has gained back all of its losses and then some – as it’s now up about 6% year to date. If you sold out of some stocks or investments at the bottom, you locked in your losses and never got the returns back.

The fact is, the markets, over the long term, have been remarkably resilient. Over the last 10 years through to 8 October, the S&P 500 has an average annual return of 11.6% – that, of course, includes the COVID-19 crash. If you want to look really long-term, the S&P 500 has posted an average annual return of 8.4% over the past 30 years through 8 October.

Now, if you are in retirement or have a shorter time horizon for whatever reason or goal (college payments, for example), the short-term volatility becomes more of a concern. Your time horizon would affect your asset allocation. Whereas someone who’s 10 or more years out from their goals can ride it out, people with a time horizon of five years or less may want to allocate their assets accordingly to add more safety and stability.

Reassess your investments 

The market crash wasn’t the only thing that happened when the pandemic hit – its impacts went much deeper than that. The shutdowns were temporary, but the effect on certain industries was much longer-term. Restaurants are still affected by social distancing protocols, as are movie theaters, airlines, retail stores, hotels, theme parks, and entertainment venues, to name a few. Banks are looking at interest rates in the 0% range through 2023, according to the Federal Reserve. On the other hand, social distancing and the pandemic in general have accelerated e-commerce and the companies that operate within it, as well as companies that produce technology that allows us to live and work in this new normal.

In other words, the pandemic has facilitated longer-term societal shifts. So, as an investor, it is a good time to reassess your portfolio with a macro view of the markets. Know which industries are growing and which are more resistant to a recession, but also be aware of those spaces that could suffer longer-term effects. Which stocks you invest in always comes down to a granular look at the company, but having an awareness of the larger macro forces will better inform your choices.

If you keep these ideas in mind, you’ll likely have fewer financial regrets.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Why the Afterpay Ltd (ASX:APT) share price broke its record high today
• Why the Dubber (ASX:DUB) share price rocketed 16% higher today
• The niche ASX shares critical to fuelling the tech boom
• Why the Clearview (ASX:CVW) share price is surging up today
• 3 top global ASX dividend share ideas

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Afterpay Ltd (ASX: APT) share price is up 2.5% at 96.90 this afternoon after hitting a record high of $98.68 in opening trade today.

Afterpay’s share price has defied naysayers and is now 5% up from its previous all-time highs, set on 25 August. Year-to-date, the share price is up 218%.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 8% for the year.

As if Afterpay shareholders needed anything else to celebrate this year, AUSTRAC just delivered it.

What does Afterpay do?

Afterpay is a leader in the buy now, pay later (BNPL) market. Afterpay’s payment platform allows people to buy and receive goods and spread the cost of their purchase out over equal payments, without any interest fees.

Founded in 2015, Afterpay shares first began trading on the ASX in June 2017. Today the company operates in Australia, the United States and the United Kingdom, with current expansion plans into the wider European market.

What was AUSTRAC’s decision on Afterpay?

In June 2019, financial crimes watchdog AUSTRAC ordered Afterpay to appoint an external auditor into allegations the company had broken anti-money laundering legislation. Last November the report indicated that Afterpay had indeed breached some laws, but that it was due to poor legal advice rather than its inherent business model.

In an announcement to the ASX this morning, Afterpay confirmed that it had received final notification from AUSTRAC, and that the agency would not be taking any further regulatory action.

AUSTRAC noted that the BNPL giant had uplifted its AML/CTF compliance framework and financial crime function, and completed its mandated remediation activities.

Commenting on the decision, Afterpay chair Elana Rubin said:

We are pleased to have received AUSTRAC’s decision following the external audit as it provides the company and its stakeholders with certainty and acknowledges the work the company has undertaken to strengthen its AML/CTF compliance.

The external audit provided Afterpay with the opportunity to better understand our obligations and to improve the way we manage our AML/CTF risks. We will use these learnings and our ongoing engagement with AUSTRAC to continue enhancing our AML/CTF framework as the business continues to grow.

With the Afterpay share price now up a mind-boggling 994% since the 23 March lows, shareholders will welcome the news of its strengthened compliance regimes.

More reading

• The niche ASX shares critical to fuelling the tech boom
• ASX 200 flat: Bank of Queensland impresses, CSL guidance update, AUSTRAC clears Afterpay
• Why Afterpay, Bank of Queensland, EML, & Sonic shares are storming higher
• Is it $80 or $100 next for the Afterpay (ASX:APT) share price? 
• 3 ASX tech shares that pay dividends

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Dubber Corp Ltd (ASX: DUB) share price has been a very strong performer on Wednesday.

The cloud-based call recording services provider’s shares were up as much as 16% to $1.30 at one point today.

They have since given back some of these gains but are still up 10% to $1.23 at the time of writing.

Why is the Dubber share price rocketing higher?

Investors have been fighting to get hold of the company’s shares following the release of its first quarter update this morning.

For the three months ended 30 September, Dubber reported solid growth across a number of key metrics.

According to the release, the number of subscribers of its services increased 20% or 38,062 on the prior quarter to 230,606. Over the 12 months, Dubber’s subscriber numbers are up 96%.

Management advised that this reflects organic growth in recording users from its pre-existing service provider partner networks.

This strong subscriber growth underpinned a 12% or $2 million quarterly increase in its annualised recurring revenue (ARR) to $18.1 million. This means its ARR is now up 77% since this time last year.

Also growing strongly was its quarterly revenue, which lifted 26% or $687,000 to $3.25 million.

Finally, Dubber’s cash receipts for the quarter came in at $2.7 million, which is up 64% or $1.1 million. The company ended the period with a cash balance of $16 million.

Outlook.

No guidance was given for the remainder of the year. However, management appears confident that it is well-positioned for the future.

It commented: “The Company believes that with the now accepted “new normal” of a distributed workforce, together with the resultant expectation levels for intelligent data services, there has never been a better time to operate a global scalable cloud-based platform.”

And thanks to its re-branding program and growth strategy, management believes the company is on a path to $100 million in ARR.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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