Category: Stock Market

Investing in the small side of the share market carries significantly more risk than other areas.

However, if your risk tolerance allows for it, having a bit of exposure to this side of the market could be a good thing for a balanced portfolio.

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

BlueBet Holdings Ltd (ASX: BBT)

The first small cap share to watch is BlueBet. It is a mobile-first online wagering provider. BlueBet allows users to bet on all Australian and international racing and sports through its website and app.

The company has been growing very strongly over the last 12 months thanks to the increasing popularity of mobile sports betting.

For example, in FY 2021, the company outperformed its prospectus forecasts with an 83.3% increase in turnover to $344.7 million and a 48.4% lift in underlying EBITDA to $7.5 million. This was underpinned by a 45.7% increase in active customers to 32,472.

Positively, management is confident that this trend can continue and believes it is well positioned to substantially grow its share of the market in Australia and expand into the massive US market.

Morgans is very positive on the company’s long term growth prospects. As a result, it recently put an add rating and $2.57 price target on its shares.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. Users then use this to help them inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes.

Demand for this type of software continues to grow thanks to industry tailwinds such as telehealth.

This was evident in FY 2021, with the company reporting a 95% increase in sales orders (total contract value) to $25.6 million. This is still well short of its estimated total addressable market of US$2.75 billion.

Morgans is also a fan of the company and believes it is well-placed to deliver strong revenue growth in the coming years. The broker currently has an add rating and $1.56 price target on the company’s shares.

The post 2 growing small cap ASX shares to watch 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. owns shares of and has recommended MACH7 FPO. The Motley Fool Australia has recommended BlueBet Holdings Ltd and MACH7 FPO. 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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The WAM Capital Limited (ASX: WAM) share price has risen by 6% over the last month. What may be next for the listed investment company (LIC)?

What is WAM Capital?

For readers that haven’t heard of WAM Capital before, it’s a LIC. The purpose of a LIC is to invest in other shares on behalf of shareholders.

This is the biggest of the WAM LICs, of which there are several. WAM Capital says that it looks for the most compelling undervalued growth opportunities in the Australian share market.

According to the ASX, it currently has a market capitalisation just over $2 billion.

What has happened in the last month?

WAM Capital’s share price rose 5% in the week after delivering its FY21 result.

The LIC reported that it made a record operating profit before tax of $343.3 million. That was a reversal from the operating loss before tax of $47.2 million in FY20. It also made a record operating profit after tax of $266.6 million, which was a turnaround from the operating loss after tax of $26.7 million.

In percentage terms, WAM said that over FY21 its investment portfolio increased by 37.5% (before expenses, fees and taxes), outperforming the S&P/ASX All Ordinaries Accumulation Index by 7.3%.

WAM Capital saw a total shareholder return over the 12 months to 30 June 2021 of 28.9%. That’s the combined return of dividends and share price growth.

The LIC declared a fully franked final dividend of 7.75 cents per share, bringing the full year dividend to 15.5 cents per share. WAM Capital noted that the LIC had a profit reserve of 21.8 cents per share as at 31 July 2021, before the payment of the final dividend.

Investor presentation

Last week, WAM Capital also released an investor presentation.

It noted that based on the 7 September 2021 share price of $2.33 it had a fully franked dividend yield of 6.7% and a grossed-up dividend yield of 9.5% (which is including the benefit of franking credits into the yield).

In that investor presentation, WAM Capital said that its investment strategy is now shifting from COVID-19 beneficiaries to the Australian re-opening.

Some of the ASX shares that it pointed out as holdings were Universal Store Holdings Ltd (ASX: UNI), Ardent Leisure Group Ltd (ASX: ALG), Event Hospitality and Entertainment Ltd (ASX: EVT), Viva Energy Group Ltd (ASX: VEA) and Maas Group Holdings Ltd (ASX: MGH).

At the end of July 2021, some of the other top 20 ASX share holdings in the WAM Capital portfolio were: Australian Clinical Labs Ltd (ASX: ACL), City Chic Collective Ltd (ASX: CCX), Reliance Worldwide Corporation Ltd (ASX: RWC) and Webjet Limited (ASX: WEB).

What is the current WAM Capital yield?

At the WAM Capital share price of $2.33, the annual dividend of 15.5 cents translates to a fully franked yield of 6.6% and a grossed-up dividend yield of 9.5%.

The ex-dividend date for the final dividend is 18 October 2021.

The post The WAM Capital (ASX:WAM) share price is up 6% in a month. What’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Reliance Worldwide Corporation Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Reliance Worldwide Corporation 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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Today, the S&P/ASX 200 Index (ASX: XJO) climbed higher despite a weaker US market on Friday night. The benchmark index climbed 0.25% higher to 7,425.2 points. Mining and energy shares squeezed out the gain, offsetting losses in real estate and financial shares.

The question is: which shares delivered the most generously to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Pilbara Minerals Ltd (ASX: PLS) was the biggest gainer today. Shares in the lithium producing company rallied 6.83%% as lithium prices hit record highs. Find out more about Pilbara Minerals here.

The next biggest gaining ASX share today was Lynas Rare Earths Ltd (ASX: LYC). The rare earths miner notched up a gain of 4.93% to $7.45. Uncover the latest Lynas details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Pilbara Minerals Ltd (ASX: PLS)	$2.19	6.83%
Lynas Rare Earths Ltd (ASX: LYC)	$7.45	4.93%
Yancoal Australia Ltd (ASX: YAL)	$2.57	4.90%
Sydney Airport Holdings Pty Ltd (ASX: SYD)	$8.355	4.44%
Evolution Mining Ltd (ASX: EVN)	$3.945	4.09%
Oz Minerals Ltd (ASX: OZL)	$24.34	3.75%
Northern Star Resources Ltd (ASX: NST)	$9.43	3.17%
Aristocrat Leisure Ltd (ASX: ALL)	$48.22	2.95%
Iluka Resources Ltd (ASX: ILU)	$10.28	2.80%
Zip Co Ltd (ASX: Z1P)	$7.02	2.18%

Our top 10 ASX shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Mitchell Lawler owns shares of Lynas Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. 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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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Webjet Limited (ASX: WEB) is back as the most shorted ASX share after its short interest rose to 10%. Short sellers aren’t giving up on the online travel agent despite its trading update which revealed a significant improvement in the performance of its WebBeds business.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall slightly week on week to just under 10%. Short sellers continue to hold onto their positions despite the travel agent expecting to reach profitability again during FY 2022.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 9.2% of its shares held short, which is up week on week. Short sellers have been targeting this defence and space company due to accounting and cash generation concerns.
• Zip Co Ltd (ASX: Z1P) has seen its short interest ease week on week to 9.2%. This appears to have been driven by concerns over rising costs and increasing competition in the BNPL space.
• Kogan.com Ltd (ASX: KGN) has short interest of 8.6%, which is down week on week. This high level of short interest appears to have been driven by fears that the ecommerce company’s inventory woes will weigh on its performance for a little while longer.
• Piedmont Lithium Inc (ASX: PLL) has short interest of 8.4%, which is up since last week. Valuation and mining license approval concerns appear to be weighing on sentiment.
• Mesoblast limited (ASX: MSB) is back in the top ten with short interest of 8.1%. The biotech company is burning through cash and has warned that it may need to raise funds if deals aren’t successfully executed in FY 2022.
• Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is flat week on week. Short sellers continue to target the poultry company despite it extending its key supply contract with Woolworths Group Ltd (ASX: WOW).
• Cooper Energy Ltd (ASX: COE) has 7.7% of its shares in the hands of short sellers, which is up sharply week on week. This appears to have been driven by the poor performance of its Project Sole.
• Redbubble Ltd (ASX: RBL) is back in the top ten with short interest of 7.7%. Short sellers may be targeting this ecommerce company following a severe deceleration in its growth during the fourth quarter of FY 2021.

The post These are the 10 most shorted ASX shares 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. owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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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The ResApp Health Ltd (ASX: RAP) share price has been trending among investors, following its meteoric rise in recent memory.

At the time of writing, the digital health company’s shares are up an astonishing 18.92% to 8.8 cents. This means that over the past week, its shares have climbed by more than 65%, reflecting renewed investor optimism.

With no news out of the company today, let’s take a look at its latest updates to the ASX.

What did ResApp recently announce?

Looking back, ResApp provided its full-year results in late August, reporting an improvement when compared to the prior year (FY20).

For the 12 months ending 30 June, ResApp brought in revenue from a contract with customers of $69,371. This came from the launch of three new products during the year. They included ResAppDx (acute respiratory disease diagnostic tool), ResAppCC (cough counter and smartphone application), and SleepCheck (sleep apnoea screening application).

The net loss for the period stood at $6.77 million, down 20% on FY20’s net loss of $8.49 million.

ResApp retained a cash balance of $6.59 million. Net cash used in operating activities totalled $5.6 million.

However, at the start of this month, the company advised it received regulatory approval for ResAppDx in Indonesia. Another new international market following ResApp’s entry into Kenya in May 2021.

As such, ResApp partnered with the largest provider of telehealth services in the country, Alodokter to launch ResAppDx before December 2021.

ResApp CEO and managing director, Dr Tony Keating commented:

Obtaining regulatory approval in Indonesia is an important step in our partnership with Alodokter. With a population of over 270 million and a growing telehealth market, Indonesia represents an exciting opportunity for ResApp and with Alodokter we have an important partner that should see significant use of ResAppDx by doctors and their patients.

ResApp share price summary

While over the past month, investors have seen their ResApp holdings accelerate 90% in value, it has been a different story since this time last year. In fact, the company’s shares are down more than 20% from September 2020, even after this week’s wild gains.

The post ResApp (ASX:RAP) share price races 18% higher today, up 65% in a week appeared first on The Motley Fool Australia.

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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.

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The BHP Group Ltd (ASX: BHP) share price has spent most of today in the green despite reports a bill to stop its planned copper project will face the US Senate.

Resolution Copper, a joint venture that’s 45% owned by BHP and 55% owned by Rio Tinto Limited (ASX: RIO), plans to mine a copper resource located underground at Arizona’s Oak Flat.

As The Motley Fool has previously reported, Oak Flat is sacred to the region’s San Carlos Apache Tribe.

Reports emerged today that a bill named the Save Oak Flat Act was added to a domestic spending package that passed the US House of Representatives on Thursday. It will now move to the US Senate, where it may be voted into law, disallowing BHP and Rio Tinto to mine the resource.

Let’s take a closer look at today’s news regarding the resources company.

BHP might fall flat at Oak Flat

The BHP share price was posting gains all day despite news an act opposing its planned project has passed the US House of Representatives.

While BHP’s stock hasn’t been noticeably affected by the reports, the Rio Tinto share price has slipped 0.27% today.

The act notes that Resolution Copper plans to use block cave mining to retrieve copper ore from the deposit. Doing so will destroy the sacred area forever.

It also argues BHP and Rio Tinto’s planned mine will likely affect the region’s hydrology and pollute its drinking water.

According to reporting by the Australian Financial Review (AFR), the act passed the US House of Representatives on Thursday.

The Save Oak Flat Act will now face the US Senate alongside several measures. There, it might be voted into law.

The AFR states the deposit holds enough copper to supply a quarter of the US’s needs for 40 years.

BHP share price snapshot

In the last hour of trade today, BHP shares dipped into the red. Right now, the BHP shares are trading at $41.19, 0.15% lower than the previous close.

This slump is more indicative of the BHP share price lately.

It is currently 2.92% lower than it was at the start of 2021. However, it has gained 12.69% since this time last year.

The post BHP (ASX:BHP) share price lifts despite US mine doubts appeared first on The Motley Fool Australia.

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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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Peter Overton on Nine’s Late News on Sunday night to discuss the week ahead for the economy and the stock market. Unemployment, business and consumer confidence and a speech from RBA Governor Philip Lowe are on the docket.

The post Week ahead: Jobs, confidence and RBA. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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Motley Fool contributor Scott Phillips 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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It has been a volatile start to the week for the S&P/ASX 200 Index (ASX: XJO). In afternoon trade, the benchmark index has given back its earlier gains and is down 0.1% to 7,398.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Afterpay Ltd (ASX: APT)

The Afterpay share price is down over 2.5% to $122.94. This follows a pullback in the Square share price on Friday night after weakness in the US tech sector. As Square’s takeover of Afterpay is being made in shares, any fluctuations in the Square share price impacts the value of the offer.

Chorus Ltd (ASX: CNU)

The Chorus share price has fallen 2% to $6.46. The catalyst for this decline has been the New Zealand based telco’s shares trading ex-dividend this morning for its 13.9 cents per share final dividend. Eligible shareholders can now look forward to being paid this dividend next month on 12 October.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is down 1.5% to $28.05. Investors have been selling this banking giant’s shares after it was downgraded by analysts at Credit Suisse. According to the note, the broker has downgraded the bank’s shares to a neutral rating with a $28.50 price target. The broker made the move largely on valuation grounds after a strong gain.

Omni Bridgeway Ltd (ASX: OBL)

The Omni Bridgeway share price has continued its slide and is down a further 5% to $3.57. Investors continue to sell this litigation funder’s shares since the release of an update on the Brisbane Flood class action last week. Unfortunately for Omni Bridgeway, the Supreme Court of New South Wales Court of Appeal has found the remaining defendant not liable.

The post Why Afterpay, Chorus, NAB, & Omni Bridgeway shares are dropping 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. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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The DevEx Resources Ltd (ASX: DEV) share price is extending its month-long run on Monday.

At the time of writing, shares in the mining exploration company are trading 15% higher to 36 cents per share. The continued momentum in the company’s share price puts its monthly gain at 40%.

Despite the impressive move, there are no fresh announcements from DevEx today.

On that note, let’s take a look at what DevEx has been up to.

Busy collecting results

DevEx is an exploration company with multiple tenements covering a range of resources. Interestingly, the company is chaired by Chalice Mining Ltd (ASX: CHN) and Liontown Resources Ltd (ASX: LTR) chairman Tim Goyder.

DevEx’s exploration activities span several discovery hot spots including the Julimar Complex in Western Australia, Lachlan Fold Belt in New South Wales, and Alligator Rivers Uranium Province in the Northern Territory. However, investors have likely been snacking on two predominant themes concerning the DevEx share price recently.

Firstly, on 17 August 2021, DevEx shared its results from an air-core drilling program at its Sovereign Project. The company highlighted a 12km long mafic-ultramafic intrusion defined by its exploration results. This finding has buoyed hopes for nickel-copper-platinum exploration in the region.

DevEx share price catches uranium surge

Secondly, the strong gust behind uranium shares has likely flowed into DevEx Resource’s sails. The small-cap explorer is not alone in this. Other ASX-listed uranium players such Peninsula Energy Ltd (ASX: PEN) and Paladin Energy Ltd (ASX: PDN) are flying 20% and 15% higher respectively.

While not quite of the same calibre in terms of market capitalisation, DevEx holds exposure to uranium with the Nabarlek Project in the Northern Territory.

The company holds a tenement covering 4,700 square kilometres in the Alligator Rivers Uranium Province. The tenement covers the historical Nabarlek uranium mine which produced 24 million pounds of ore at 1.84% U₃O₈.

Due to the improving uranium market, DevEx is conducting a project-wide review of the Nabarlek Project. This statement bodes well for the DevEx share price, considering the boom in interest from uranium investors.

The post DevEx Resources (ASX:DEV) share price surges 15%, up 40% in a month. Here’s why appeared first on The Motley Fool Australia.

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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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The Aristocrat Leisure Limited (ASX: ALL) share price has continued its miraculous run today.

Shares in the gaming technology giant soared to a new record high today after hitting a high of $49.02.

In the past month alone, shares in Aristocrat have hit 10 new record highs.

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

What’s propelling the Aristocrat share price?

Shares in Aristocrat have managed to shrug off COVID-19 induced lockdowns and restrictions.

Although its traditional gaming machines have struggled, the gaming giant has maintained growth through its digital gaming business.  

Aristocrat’s strong performance during turbulent times was somewhat at odds with it’s recent half-year report for FY21.

For the 6 months ending 31 March 2021, the company saw its operating revenues fall 1% to $2.23 billion.

Gross profit for the half-year also decreased 3.5% to $1.13 billion.

However, Aristocrat buoyed its report by reporting an 18.4% increase in net profit after tax (NPAT) of $362.2 million.

As noted, Aristocrat cited substantial growth in its digital segment for the increase in profits.

For the first half, 54% of group revenue was generated from the company’s digital gaming business.

In addition, the company highlighted that it ranks in the top 5 mobile game players across Tier 1 western markets.

The company did not provide guidance for the full-year, however Aristocrat’s management plans to enhance its market-leading position in casino gaming operations. In addition, the gaming giant plans to drive further growth in its digital games business.

More on the Aristocrat share price

Since the start of the year, shares in Aristocrat have soared more than 50%.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has only managed to claw 12% higher in 2021.

The gaming giant expects further investment and growth in its digital bookings.

Aristocrat’s user acquisition investment is expected to be above the historic range of 25% and 28% of overall digital revenues.  

The company’s growth outlook has also been supported by numerous brokers and analysts.

Recently, leading broker Citi released a bullish outlook on the company, initiating a buy rating of a $46 share price target.

Analysts noted that Aristocrat’s digital business and traditional gaming segments are pulling together.

At the time of writing, shares in Aristocrat are currently up more than 3% for the day at a record high of $48.26.

The post The Aristocrat (ASX:ALL) share price has hit 10 new record highs in the past month appeared first on The Motley Fool Australia.

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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.

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