Category: Stock Market

The Vulcan Energy Resources Ltd (ASX: VUL) share price is hovering in negative territory today. This comes after the lithium developer released its share purchase plan (SPP) offer booklet to investors before market open.

At the time of writing, Vulcan shares are fetching for $13.38 apiece, down 0.52%. This means its shares have now fallen 8% in the past week alone.

Share purchase plan details

Investors are selling Vulcan shares after the company opened invitation to retail shareholders to participate in its SPP.

Following the successful $200 million institutional placement, Vulcan has extended its offer to eligible shareholders.

Under the SPP, investors can apply to buy a parcel of Vulcan shares for $13.50 per share. The same terms offered in the placement represent a discount of 15.1% on the last closing price on 13 September (before the trading halt). This is also an 8.7% discount to the volume-weighted average price over the last 10 days before the SPP was announced.

Investors can apply for a minimum application amount of $2,500 with a maximum application amount of $30,000.

Vulcan is seeking to raise a total of $20 million through the SPP. However, this can be scaled back or increased depending on the total value of the applications.

The proceeds raised from the equity raise, along with existing cash will be used towards funding a number of company initiatives. This includes the following:

• Targeted acquisition and refurbishment of exploration equipment;
• Targeted acquisition and upgrade of existing brownfield energy and brine infrastructure;
• Expanded project development; and
• Corporate costs, equity raising costs, overheads and general working capital.

The closing date for the SPP will be 13 October. The new shares will be issued on 18 October, with the following day available for trading.

Vulcan share price snapshot

Over the last 12 months, Vulcan shares have exploded into the stratosphere, posting incredible gains of 1,200%. Year-to-date has been just as impressive, up by almost 400% after investor sentiment heats up in the industry.

Based on today’s price, Vulcan commands a market capitalisation of around $1.53 billion with approximately 108.79 million shares on issue.

The post Vulcan (ASX:VUL) share price edges lower on share purchase plan update appeared first on The Motley Fool Australia.

More reading

• Vulcan (ASX:VUL) share price tumbles despite key appointments
• Why Afterpay, AnteoTech, Cettire, & Vulcan shares are storming higher
• Why Accent, Ioneer, Lifestyle Communities, & Vulcan are sinking
• Which ASX shares are leading the way on the ASX 300?
• Why the Vulcan (ASX:VUL) share price is crashing 10% today

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/3o2pT55

The Senex Energy Ltd (ASX: SXY) share price is rising on Friday morning following news that the oil and gas producer will sell natural gas to 29 Metals Ltd (ASX: 29M).

At the time of writing, shares in Senex are trading for $3.56 – up 0.56%. The S&P/ASX 200 Index (ASX: XJO) is 0.06% lower.

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

The Senex share price is falling

In a statement to the ASX, Senex Energy says it has entered into an agreement with 29Metals to supply its Capricorn copper mine with 2.5 petajoules (PJ) of natural gas over 3 years.

The natural gas will be shipped to the Diamantina power station (which is owned by APA Group (ASX: APA)), which in turn will power the copper mine. The arrangement begins in January 2022.

The cost of the deal has not been disclosed, except to say it is a “fixed price” and “in line with current market prices”. According to the website Trading Economics, the current market price for natural gas is US$5.05 per million British thermal units. Its price has soared 98% since the beginning of the year.

Senex says it has about 80PJ of agreements with domestic customers at the moment.

Investors aren’t too enamoured with today’s news, judging by the falling Senex share price.

Management commentary

Senex Managing Director and CEO, Ian Davies, said:

The Capricorn Copper mine is a critical project in the Queensland Government’s Strategic Blueprint for the North West Minerals Province.

Copper in particular has a large role to play in the production and operation of next generation clean technologies such as electric vehicles, and solar and wind power sectors.

Senex looks forward to building another strong, long-term and mutually beneficial relationship that supports jobs, the economy and helps meet Australia’s energy demand as it transitions to a lower carbon future.

Senex share price snapshot

Over the past 12 months, the Senex share price has increased by 36%. Year to date it is up an even larger 41%. Both metrics are faster than the ASX 200 index over the same periods.

Senex Energy has a market capitalisation of roughly $655 million.

The post Senex (ASX:SXY) share price up on new gas sale agreement appeared first on The Motley Fool Australia.

More reading

• Senex (ASX:SXY) share price leaps 5% amid sustainability push
• Why the Senex (ASX:SXY) share price is pushing higher today
• Why Novonix, ResMed, Senex, & Weebit Nano shares are charging higher
• ASX 200 down, Flight Centre rises, Redbubble falls

Motley Fool contributor Marc Sidarous 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 owns shares of and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3i2UZFQ

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is on the move this Friday. This comes after the biopharmaceutical company provided an update in regards to its upcoming clinical trial.

At the time of writing, Paradigm’s shares are fetching for $2.12, up 3.41%.

What did Paradigm announce?

In today’s statement, Paradigm advised it has received an Australian ethics approval for its pivotal phase 3 clinical trial, PARA_OA_002.

The study will see the treatment of pentosan polysulfate sodium (PPS) against placebo on participants with Knee Osteoarthritis Pain.

PPS, an injectable solution, aims to treat musculoskeletal disorders caused by injury, inflammation, aging, degenerative disease, infection or genetic predisposition. The semi-synthetic drug is packaged as Zilosul and has shown improvements in pain reduction, joint function, and the prevention of cartilage damaging joints.

Evaluation will be done through WOMAC pain and WOMAC function at multiple time points from day 1 to day 168.

WOMAC is a widely-used health tool that assesses physical function, pain, and stiffness in patients with Osteoarthritis. The self-administered instrument gives a score range for each of the three subclasses to indicate the patient’s health status.

Paradigm is eyeing 8 sites across 5 states in Australia to conduct its PARA_OA_002 study. The states include Victoria, Western Australia, Queensland, South Australia and New South Wales.

Patient recruitment and screening are set to commence during the fourth quarter of the calendar year.

In addition, the company expects to receive a response this month from the United States Food and Drug Administration. This is in relation to its Investigational New Drug (IND) application to begin the United States arm of the study.

Management commentary

Paradigm CEO, Paul Rennie said:

We are pleased to report that preparations to commence our Phase 3 clinical trial are progressing whilst we await the US FDA’s response, expected at the end of September. We expect that, in addition to the 8 Australian sites, there will be clinical sites in UK and Europe and, subject to the FDA’s response, in the US. Our preparation to expand into these additional sites is well underway. Commencing the Phase 3 clinical study is a significant milestone for the Company.

Paradigm share price snapshot

The Paradigm share price has been up and down over the past 12 months, reaching as high as $3.19 and as low as $1.76. While losing around 10% in value since this time last year, its shares are down further by 20% in 2021.

Paradigm commands a market capitalisation of roughly $465.82 million and has approximately 229.91 million shares on its registry.

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

More reading

• Cochlear (ASX:COH) share price down 4% on US patent infringement complaint
• Whitehaven Coal (ASX:WHC) share price on the rise after annual report release
• Why the Tesserent (ASX:TNT) share price is frozen today
• Microsoft remains a top-notch dividend stock
• Telstra (ASX:TLS) share price higher on Vita (ASX:VTG) deal

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/3kD8EoU

The Cochlear Limited (ASX: COH) share price is on course to end the week in the red.

In morning trade, the hearing solutions company’s shares are down 4.5% to $226.26.

Why is the Cochlear share price tumbling lower today?

Investors have been selling down the Cochlear share price this morning after it released an announcement.

As you might have guessed from the share price reaction, the announcement wasn’t a positive one.

According to the release, a complaint has been made by the University of Pittsburgh against Cochlear for patent infringement. It has been filed by the University in United States District Court for the Western District of Texas, Waco division.

The release explains that the complaint names Cochlear and USA subsidiaries Cochlear Americas Corporation and Cochlear Clinical Services as defendants.

Cochlear to defend the lawsuit

Cochlear believes that none of its products infringe the University’s patent and will defend the lawsuit.

The company also highlights that its legacy products and related patents predate the University’s patent by several years. These earlier legacy products and patents embody the alleged invention of the patent and, accordingly, Cochlear believes the patent is invalid.

The patent in question is related to a wireless energy transfer system. It was filed at the US Patent Office in 2009 and will expire in 2030.

The company also advised that the lawsuit is not expected to disrupt Cochlear’s business or customers in the United States.

What now?

While the company appears confident in its ability to defend the lawsuit, the Cochlear share price performance would indicate that the market has a few niggling doubts.

Which is understandable given its multi-year courtroom battle with the Alfred E. Mann Foundation for Scientific Research (AMF) and Advanced Bionics (AB).

Late last year the company was ordered to pay AMF and AB US$280 million in patent infringement damages following a six-year legal dispute.

Cochlear shareholders will be hoping this latest patent infringement complaint doesn’t end up the same way.

The post Cochlear (ASX:COH) share price down 4% on US patent infringement complaint appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares going ex-dividend today
• Why has the Cochlear (ASX:COH) share price been struggling lately?
• These 5 ASX 200 shares are going ex-dividend this week
• The Cochlear (ASX:COH) share price is down 8% in 4 weeks. Is it a buy?
• How have ASX healthcare shares performed during the August 2021 earnings season?

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. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3kEdFxr

The Whitehaven Coal Ltd (ASX: WHC) share price is climbing this morning as the resources giant released its annual report.

Whitehaven shares jumped 2.89% shortly after market open this morning to $3.20 apiece. That’s after gaining a whopping 7% in yesterday’s trading session.

Read on for more details.

Whitehaven’s annual report

It was a challenging year for Whitehaven, marred by headwinds and controversy. Not to mention significant challenges in the coal markets earlier in the year.

All of that seems to have settled now. However, Whitehaven still reported a significant down-step in its profitability over FY20-21.

Here is a summary of some of the takeouts of its annual report, which were also presented in the company’s FY21 earnings report late last month.

• Revenue down 10% year over year (YOY) to $1.55 billion
• Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) decrease of 33% over the year prior, to $204.5 million
• Net loss after tax (NLAT) of $87.3 million, compared to a profit of $30 million in FY20, before significant items
• NLAT after significant expenses of $543.9 million
• $74/tonne unit cost, in line with FY20 cost of $75/tonne
• Cash generated from operations of $169.5 million, an 11% YOY drop

What happened in FY21 for Whitehaven Coal?

The key takeout from Whitehaven’s annual report is that it recognised an NLAT of $87.3 million, before significant items.

The coal giant recorded this compared to a net profit after tax (NPAT) of $30 million the year prior. Whitehaven attributes this NLAT to “the decrease in EBITDA margin on sales of produced coal.”

Specifically, it realised a decrease in margin from $21/tonne in FY20 to $14/tonne this year. The headwinds in realised coal prices were “mainly due to a $9/tonne decrease in average realised prices” from FY20 to FY21.

Foreign exchange challenges didn’t help Whitehaven’s coal sales either, as weakness in the AUD relative to the USD has made it difficult to fetch as high a price for Australian coal.

In addition, the company recognised “significant expenses totalling $650 million” compared to “nil” in FY20.

These expenses relate to “impairments (that) were allocated to Narrabri,” which came due to “the reduction in JORC reserves at Werris Creek.”

The release notes a number of reasons for the reduction in JORC reserves. However price assumptions around “uncertainties in coal markets” and the fact rail and intangible assets “are no longer expected to be utilised” are key drivers.

As a result of these expenses, this “resulted in a net loss after tax of $543.9 million.”

Whitehaven’s stated dividend policy is to distribute 20% to 50% of its net profit after tax to shareholders. However, given the company’s NLAT this year, the “board has not declared a dividend.”

What did management say?

Speaking on its annual report, Whitehaven managing director and CEO Paul Flynn said:

FY21 was very much a year of highs and lows both operationally and in terms of factors outside our control. COVID-19 continued to present challenges for coal markets and at home.

Continuing on the state of the coal markets, Flynn added:

Looking back over the last 12 months, coal markets were as dynamic as they have ever been. While we saw cyclical lows in pricing, towards the end of the year coal prices reached historic highs as the global economic
recovery picked up pace amid continuing tightness in supply.

What else did Whitehaven say in its annual report?

The price of coal has regained steam over the 12 months, coming from lows of US$52/tonne this time last year.

Coal currently trades at US$185.9/tonne, which Whitehaven sees as a plus for its ongoing operations in FY22.

In addition, “availability of high CV thermal remains tight,” according to Whitehaven, backed by “strong China coal demand.”

This is spurred on by geopolitics in the Asia–Pacific region, which has in turn “elevated seaborne coal prices to record levels.”

On the supply side, “all high quality, high CV thermal coal supply remains tight,” and prices are forecast to “remain strong through CY21, CY22 and CY23.”

These appear to be positives for Whitehaven, which may realise a higher price for its produced coal in FY22.

The Whitehaven Coal share price has gained 89% this year to date, extending its return over the last 12 months to 233%.

After bursting out of the gates this morning, Whitehaven shares have since settled back at $3.13 at the time of writing.

The post Whitehaven Coal (ASX:WHC) share price on the rise after annual report release appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• Why the Whitehaven (ASX:WHC) share price is lifting on Tuesday
• New Hope (ASX:NHC) share price jumps on $337m profit turnaround
• These 3 ASX 200 shares are flying around the markets today
• Why the Whitehaven Coal (ASX:WHC) share price is tumbling 8% today

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.

from The Motley Fool Australia https://ift.tt/3CFVnlp

The Tesserent Ltd (ASX: TNT) share price won’t be going anywhere on Friday after the company requested a trading halt.

What’s the trading halt for?

The cybersecurity and networking solutions provider requested a trading halt on the basis of a capital raising to support pending acquisitions.

Tesserent shares are expected to remain frozen until Tuesday, 28 September or when the announcement regarding the capital raising is lodged.

The company had $14.8 million in cash and cash equivalents for the year ended 30 June 2021.

The Tesserent share price last traded at 23.5 cents on Thursday.

That’s a lot of acquisitions

Tesserent is deploying an aggressive acquisition strategy to strengthen its cyber security capabilities in areas such as public and private sector consulting services and managed services.

Since the beginning of FY20, the company has acquired the following assets:

• Seer Security on 31 July 2020
• Airloom Holdings on 2 September 2020
• Ludus Information Security on 11 September 2020
• iQ3 on 11 November 2020
• Lateral Security Services (New Zealand) on 12 February 2021
• Secure Logic on 28 April 2021
• Loop Secure on 18 August 2021.

Tesserent share price going nowhere in 2021

The Tesserent share price has struggled to make headway in 2021. It is down 32% year to date to 23.5 cents.

Despite share price headwinds, the company has demonstrated a strong track record for successfully integrating its strategic business acquisitions, which in turn have strengthened its growth prospects.

In a statement on its preliminary FY21 results, Tesserent said it will continue to drive its acquisition strategy.

According to the statement:

There are also a number of potential acquisitions currently in review which if completed, will further add to the inorganic earnings growth and deepen the Cyber 360 model.

Tesserent delivered a bumper FY21 performance with revenue lifting 233% to $67.3 million.

Its normalised net profit after tax was $4.9 million. This is a big improvement on the $5.1 million loss in FY20.

The post Why the Tesserent (ASX:TNT) share price is frozen today appeared first on The Motley Fool Australia.

More reading

• Why is the Tesserent (ASX:TNT) share price down 22% in a month?
• Tesserent (ASX:TNT) share price fails to fly despite 230% revenue growth in FY21

Motley Fool contributor Kerry Sun 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.

from The Motley Fool Australia https://ift.tt/3o3rkA0

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.

After the dot-com bubble burst in 2000, many investors viewed tech stocks with a skeptical eye. Full of promise yet with little follow-up, profitable tech stocks were few and far between. Even worse, losses were commonplace. But Microsoft (NASDAQ: MSFT) rose from the ashes of the dot-com bubble with heaps of cash, proceeding to pay its first dividend in 2003. Since then, the tech company has managed to increase both its stock price and its dividend payout by leaps and bounds.

Thanks to a combination of strong revenue growth, fast-growing profits, and consistent annual dividend increases, the software giant has become a must-have for many dividend investors — and the company’s latest dividend increase reiterates its strength as a dividend stock.

Microsoft’s dividend: The details

Earlier this month, the $2.2 trillion-dollar tech company announced an 11% increase to its quarterly dividend. It’s payable on Dec. 9 and to shareholders of record on Nov. 18. The new quarterly dividend of $0.62 comes out to $2.48 annually, giving Microsoft a dividend yield of about 0.8%.

Impressively, the dividend hike actually marks an acceleration from the 10% dividend increase the company announced in 2020.

In conjunction with its dividend increase announcement, Microsoft’s board of directors also approved a $60 billion share repurchase program. This gives the company even more ways to return cash to shareholders — albeit indirectly in the form of buying back shares and thus increasing shareholder ownership in the company.

The robust dividend hike and Microsoft’s new share repurchase program together reflect the strength of the software company’s underlying business and its recent performance. Microsoft’s revenue for fiscal 2021 (which ended on Jun. 30, 2021) rose 21% year over year to $46.2 billion, while net income grew 47% to $16.5 billion.

A dividend-paying powerhouse

The company’s double-digit dividend increase helps drive home why investors shouldn’t search solely for dividend yield when looking for dividend stocks to buy. They should also consider the growth prospects of a company’s dividend.

Sure, Microsoft’s dividend yield of less than 1% may seem unappealing at first glance, but investors should realize that it’s likely the software giant’s dividend growth will average a growth rate of approximately 10% annually for the next five years. With tailwinds of strong top- and bottom-line growth and dividend payments currently accounting for less than one-third of the tech giant’s total annual earnings, there is substantial room for upside in Microsoft’s dividend payments.

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

The post Microsoft remains a top-notch dividend stock appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares are dragging the market on Monday
• Here were the most popular US shares for ASX investors last week
• How to invest in Microsoft for less than the cost of “NBA 2K22”
• ASX investors were buying Alibaba, Pfizer shares last week

Daniel Sparks has no position in any of the stocks mentioned. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Microsoft. 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.

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

from The Motley Fool Australia https://ift.tt/2XHGu30

The Telstra Corporation Ltd (ASX: TLS) share price and the Vita Group Limited (ASX: VTG) share price are both rising this morning.

At the time of writing, the telco giant’s shares are up slightly to $3.99. Whereas the retailer’s shares are up 6% to 98 cents.

Why is the Telstra share price rising?

The Telstra share price is rising today after Vita announced the sale of its Information and Communication Technology (ICT) retail business to the telco.

According to the release, the two parties have agreed a cash consideration of $110 million, subject to a net working capital and net-debt adjustment mechanism.

The release notes that the proposed transaction involves the sale of Vita’s Telstra branded retail stores and the Sprout business. Furthermore, Telstra will take over the employment relationship with the majority of staff involved with the stores and support teams.

The Vita Board believes the proposed transaction provides benefits to shareholders through realising value from the ICT channel and Sprout business now. This is rather than trading through to the conclusion of the Telstra Dealer Agreement in 2025 in an uncertain economic environment and changing ICT landscape.

What now for Vita?

If the transaction completes successfully, the Vita Board expects to distribute a large portion of the proceeds to shareholders.

It is proposing a fully franked special dividend of approximately $65 million to $75 million, representing $0.39 to $0.45 per share, plus franking credits of up to approximately $0.17 to $0.19 per share.

After which, Vita intends to utilise the remaining portion of proceeds, currently estimated to be approximately $35 million, to fund the further growth of its Artisan Aesthetic Clinics business.

It currently has 20 clinics across the country and is competing with Silk Laser Australia Ltd (ASX: SLA) in the growing beauty clinics market.

The post Telstra (ASX:TLS) share price higher on Vita (ASX:VTG) deal appeared first on The Motley Fool Australia.

More reading

• How has the Telstra (ASX:TLS) share price performed since reporting results?
• Analysts name 2 ASX dividend shares to buy
• Own Telstra (ASX:TLS) shares? Then you’re helping develop flying cars
• Here are the ASX 200’s most active shares this Tuesday
• Why this broker loves the current Telstra (ASX:TLS) share price

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 recommended SILK Laser Australia Limited. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended SILK Laser Australia Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3u8R27t

ASX shares on the smaller end of town can sometimes feel like a double-edged sword.

Their size and growth ambitions can, at times, deliver explosive returns. On the flip side, many small caps are fraught with execution risk and often struggle to turn a profit.

In an interview with Livewire, Nathan Hughes from Perpetual Limited (ASX: PPT) and Mike Murray from Australian Ethical Investment Limited (ASX: AEF) discuss small cap ASX shares with plenty of potential.

Experts rate these 2 ASX shares

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting tends to fly under the radar compared to other retail ASX shares such as Adairs Ltd (ASX: ADH) and Premier Investments Limited (ASX: PMV).

Hughes is a big fan of the retail company. He thinks there’s a “long runway for growth here and that will come from a few different things”.

“So there’s continued rollout of their existing store network. There’s direct to consumer online, so they’re going to new markets globally, which is really in its infancy. And they’re also using their existing relationships here in the existing store network to penetrate into the trade channel.

“So using their relationships with big builders, volume builders and trying to move down the trade path away from a purely retail path,” he said.

From a growth perspective, Hughes pointed out that the company has “grown revenues at about 10% per annum compound since listing (2014).”

CogState Limited (ASX: CGS)

This ASX share has exploded in recent months, rallying 140% since June to fresh all-time highs.

CogState is a neuroscience technology company focusing on scientifically validated digital brain health assessments.

Murray is excited about the company’s testing for cognition and its involvement in clinical trials, typically to do with Alzheimer’s disease.

“The really game-changing event is that there was a new drug that’s been approved in the US for Alzheimer’s and that stimulated a whole lot of new clinical trial work within Alzheimer’s.

“The other thing they’ve done is they’ve licenced this technology as almost like a direct to consumer test, globally. And if you think that you might go to the doctor in the future and not just get your blood pressure tested, you might get your cognition tested for early signs of dementia or cognitive decline.”

The post 2 small cap ASX shares with exciting growth potential: experts appeared first on The Motley Fool Australia.

More reading

• Here’s why the Medibank (ASX:MPL) share price is up 12% in the last 3 months
• September hasn’t been a great month so far for the EML (ASX:EML) share price
• Westpac (ASX:WBC) share price in focus amid new NZ CEO
• The ANZ (ASX:ANZ) share price is now trading on a forecast 5.11% fully-franked dividend yield
• An ASX correction could be coming: Here’s what to do

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ADAIRS FPO and Australian Ethical Investment Ltd. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3kI8NHH

The Medibank Private Ltd (ASX: MPL) share price has had a stellar run recently.

In the last 3 months, shares in the health insurer have rallied nearly 12%.

Let’s take a look at what’s been fuelling the Medibank share price.

Why is the Medibank share price booming?

There have been several catalysts that have helped propel the Medibank share price higher since June.

Working back, the initial push came from the health insurer’s premium relief payments policy.

On 29 June, the company announced that it will return approximately $105 million to customers impacted by the COVID-19 pandemic through premium relief payments.

Medibank noted that the premium relief program would cover approximately 2 million accounts.

Positive outlook notes from various brokers and funds also help improve sentiment towards the health insurer.

The Medibank share price received an additional boost in late August after releasing its full-year report.

How did Medibank perform in FY21?

Medibank released a promising full-year report for FY21, fuelled by consumers prioritising their health and wellbeing.

The company’s report was headlined by a 40% increase in net profit after tax (NPAT) of $441 million.

Other highlights from Medibank’s full-year report included:

• Revenue increase of 1.99% on the prior corresponding period (pcp) to $6.9 billion
• 4,900% increase in net investment income of $120 million
• Earnings per share (EPS) of 16 cents – up 39.8% on the pcp
• A full-year dividend payout of 12.7 cents per share

Medibank is forecasting a 2.4% growth in underlying average net claims in FY22.

The company also has a $15 million target for productivity savings and is targeting a heavier focus on inorganic growth for FY22.

Snapshot of the Medibank share price

In addition to a solid past 3 months, shares in Medibank have also had a stellar year thus far.

Since the start of 2021, shares in the health insurer have soared more than 17% higher.

By comparison, the broader S&P/ASX200 Index (ASX: XJO) has only managed to climb 11% higher for the year.

The Medibank share price closed yesterday’s session slightly higher at $3.55.

The post Here’s why the Medibank (ASX:MPL) share price is up 12% in the last 3 months appeared first on The Motley Fool Australia.

More reading

• An ASX correction could be coming: Here’s what to do
• 5 things to watch on the ASX 200 on Friday
• Why the embattled AGL (ASX:AGL) share price is surging higher today
• These 3 ASX 200 shares are topping trading volumes today
• APA Group (ASX:APA) share price jumps on strong support for its takeover bid

Motley Fool contributor Nikhil Gangaram 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.

from The Motley Fool Australia https://ift.tt/3zFL8vs