Category: Stock Market

Commodity prices across the board have surged in recent months, and energy commodities are no exception. Crude oil, thermal coal and liquified natural gas (LNG) have pushed higher, but ASX energy shares seem to be lagging behind. 

Energy commodities bouncing back

Brent crude oil has staged a significant recovery to the US$52 per barrel level. This compares to being range bound around the US$40 mark since June 2020.

Thermal coal prices have increased over 50% during the December 2020 quarter, brought on by China ramping up imports on non-Australian thermal coal. 

LNG prices have also surged to a six-year high of around US$15 per million British thermal units (MMbtu), from US$2/MMbtu in mid-2020. 

A number of supply-demand, weather and political forces continue to work in favour of sturdy energy prices. Since March 2020, key energy producers including OPEC+ and Glencore have focused on managing supply and curbing greenfield and expansion projects.

More recently, a number of regional economies have also emerged from COVID-19-related lockdowns, which could help demand-side fundamentals.

Bell Potter upgrades ASX energy shares 

Bell Potter reiterated buy recommendations for a series of ASX energy shares on 7 January 2021.

Beach Energy Ltd (ASX: BPT) had a share price target of $2.29, or an 19% upside to its closing price on Friday of $1.92.

The Cooper Energy Ltd (ASX: COE) share price target was 47 cents. This represents an upside of 17.5% compared to its closing price last week of 40 cents. 

Finally, Senex Energy Ltd (ASX: SXY) also received a buy recommendation with a price target of 40 cents. The Senex share price closed at 33 cents last week. 

These companies received buy recommendations on the basis that they each had uncontracted medium- to long-term production and are positioned to expand their existing assets to meet increased demand.

Other preferred ASX energy shares that received speculative buy ratings from Bell Potter included Byron Energy Ltd (ASX: BYE) with a price target of 42 cents, Comet Ridge Ltd (ASX: COI) with a 17 cent price target and Blue Energy Limited (ASX: BLU) with a 17 cent price target as well. These companies are far more speculative in nature, with market capitalisations of less than $200 million. 

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 1.1%
• ASX 200 down 0.5%: Energy shares jump, big four banks fall, Zip climbs higher
• ASX energy shares on watch after oil prices surge higher
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Lina Lim 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.

The post Broker thinks these 6 ASX energy shares could go higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3q5fjb6

There are some ASX shares that could be worth looking into.

Businesses that are growing may be able to deliver satisfactory investment returns over the longer-term.

Not every business is growing, particularly during this difficult COVID-19 period.

Here are three ASX shares to think about:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This is an exchange-traded fund (ETF) ASX share which is focused on high-quality businesses that are listed in the United States.

VanEck, which is the ETF provider, says that the ETF gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team. In other words, the businesses have “wide economic moats.”

The target companies of the ETF must be trading at attractive prices relative to Morningstar’s estimate of fair value, with the research used being Morningstar’s rigorous equity research process.

At the end of December 2020, its largest positions were John Wiley & Sons, Charles Schwab, Corteva, US Bancorp, Wells Fargo, Constellation Brands, Bank of America, Boeing, Yum! Brands and Cheniere Energy.

Despite the ETF’s management fees of 0.49% per annum, VanEck Vectors Morningstar Wide Moat ETF has delivered net returns of 16.6% per annum over the past five years, outperforming the S&P 500.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an ASX share which specialises in facilitating electronic donations. Its key client base is large and medium US churches. These churches receive a large amount of donations each year. The company is aiming for a 50% market share of this sector, which could see it generate US$1 billion of annual revenue eventually.

In the most recent result, the FY21 half-year report, Pushpay processed US$3.2 billion of donation volume – this was growth of 48%. Its operating revenue grew 53% to US$85.6 million in the same result.

Fund manager Ben Griffiths from Eley Griffiths said: “Over the last 12 months it has become clear Pushpay is at an inflection point for both cashflow and earnings. Under the stewardship of CEO Bruce Gordon, Pushpay has transitioned from a founder-led investment phase into an optimize/monetization phase. What is more surprising is the very conservative nature of the accounts (a rarity in small cap tech, outside Iress Ltd (ASX: IRE)). We believe the next few years for Pushpay will be rewarding and that COVID-19 will accelerate the already entrenched trend to digital giving/engagement from cash.”

In FY21 Pushpay is expecting to more than double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to a range of US$54 million to US$58 million.

According to Commsec, the Pushpay share price is valued at 22x FY23’s estimated earnings.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the businesses that have grown strongly since the onset of the pandemic and the rise of online shopping.

The ASX share revealed that growth has continued in FY21. It said that in FY21 between 1 July 2020 to 19 October 2020, revenue was up more than 138%. October’s revenue growth was more than 100%. The FY21 first quarter EBITDA was $8.6 million, which was more than the EBITDA from the whole of FY20.

Management plan to keep expanding its range, including the private label products. It will also keep investing in its technology, data and marketing. As it gets bigger it can invest even more into its customer proposition and advertising. The company described this as a virtuous cycle.

The ASX share is also bullish about its trade and commercial division over the long-term, which grew by 68% over FY20 despite a tough fourth quarter where many businesses reduced spending.

Temple & Webster wants to keep its customer satisfaction rates very high. It had a net promoter score of around 70% in FY20.

The company is committed to a high growth strategy to take advantage of the structural shift towards online, capitalising on both organic and inorganic opportunities.

According to Commsec, the Temple & Webster share price is valued at 39x FY22’s estimated earnings.

More reading

• 3 stellar ASX shares to buy in January
• 2 compelling ASX shares to buy in January
• 2 fantastic ASX growth shares that could beat the market in 2021
• The Pushpay (ASX:PPH) share price jumped 80% in 2020: Can it go higher?
• How to invest in ASX shares in a post-COVID world 

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 PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia has recommended IRESS Limited, PUSHPAY FPO NZX, Temple & Webster Group Ltd, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Got money to invest? Here are 3 ASX shares to buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38zj6aV

The Gascoyne Resources Ltd (ASX: GCY) share price is surging today after the company released its latest production update for its Dalgaranga Gold Project.

At the time of writing, the gold miner’s shares are up 6.38% to 50 cents. In contrast, most gold mining companies have seen their share price fall today due to the weakening price of gold overnight.

How did Gascoyne perform?

The Gascoyne share price is breaking the trend today after the company delivered a robust result, reaching the upper range of its previously forecasted guidance.

For the December quarter period, Gascoyne achieved production of 20,381 ounces of gold. This represents a total of 40,695 ounces of the precious metal for the entire first-half of the 2021 financial year.

Gascoyne noted that it is likely to reach the upper-end of its guidance range of 70,000 to 80,000 ounces, based on its latest result. All-in sustaining costs is expected to come between $1,200 to $1,300 per ounce.

In other news, Gascoyne said that it has started additional drilling within 1.5km of the Dalgaranga gold processing facility. The resource extension program is aimed at extending the current 7-year mine life.

During the quarter, the company engaged into new gold hedges to service its debt obligations. Around 40% was hedged over the last 18 months, translating to a $7.5 million position at the end of 2020. In total, 53,722 ounces is currently hedged at an average price of $2,611 per ounce until June 2022.

Gascoyne recorded cash on hand of $37.3 million, and bank debt of $36.5 million at the end of the December period.

What did management say?

Gascoyne managing director and CEO Richard Hay welcomed the progress, saying:

Dalgaranga has achieved three consecutive quarters producing in excess of 20,000 ounces, resulting in 80,086 ounces being produced in calendar year 2020. This consistent performance is largely as a result of mining transitioning through the oxide zone and into fresh rock in the Gilbey’s pit over the past 18 months.

Combined with a growing net cash position and a $7.5M in the money hedge position, Gascoyne is well placed to pursue its growth ambitions.

Gascoyne share price overview

The Gascoyne share price been up and down since being reinstated on the ASX in October last year.

Reaching as high as 67.5 cents on the day its shares were available for trading, the company’s shares have been erratic since. The Gascoyne share price hit a low of 40.5 cents on 24 December 2020.

More reading

• Got money to invest? Here are 3 ASX shares to buy
• Leading brokers name 3 ASX shares to buy today
• 5 top ASX mining shares for dividends and growth in 2021
• Why ASX cannabis shares are cheering the US elections
• Why the Caravel (ASX:CVV) share price is up 8% today

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Gascoyne (ASX:GCY) share price is racing 6% higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38v3yVl

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Nuix Ltd (ASX: NXL)

According to a note out of Morgan Stanley, its analysts have initiated coverage on this investigative analytics and intelligence software provider’s shares with an overweight rating and $11.00 price target. The broker appears to be a big fan of Nuix and believes it is a long term structural growth story. And while it sees some risks from much larger competitors, it isn’t enough to dampen the broker’s bullish view. The Nuix share price is trading at $8.88 this afternoon.

Oil Search Ltd (ASX: OSH)

A note out of Ord Minnett reveals that its analysts have upgraded this energy producer’s shares to a buy rating with an improved price target of $4.58. According to the note, the broker has lifted its oil price forecasts for the coming years and its earnings estimates accordingly. This resulted in the price target upgrade and its rating change. Though, it is worth noting that Santos Ltd (ASX: STO) remains its top pick in the sector. The Oil Search share price is fetching $4.24 on Monday.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Analysts at Morgans have retained their add rating and lifted their price target on this airport operator’s shares to $6.95. According to the note, the broker is expecting Sydney Airport to benefit from COVID vaccine rollouts in 2021 and is forecasting a sustained recovery over the coming years. However, it is worth noting that the broker isn’t expecting any dividends from Sydney Airport until 2023. The Sydney Airport share price is trading at $6.25 on Monday.

More reading

• The latest ASX “buy” recommendations from top brokers
• These were the best performing ASX 200 shares last week
• 5 things to watch on the ASX 200 on Friday
• These are the latest 2021 ASX “buy” ideas from top brokers
• ASX 200 up 1.55%: ANZ & Westpac surge higher, Afterpay & Xero tumble

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3q5ezTm

If you tune into what Dr Copper is telling us, 2021 is shaping up to be a year of mammoth growth for the global economy.

Copper, as you may have heard, is often said to have a PhD in economic forecasting. That’s because the metal is widely used across the construction industry in wiring and plumbing. And its prevalence in batteries makes copper increasingly important in the transition away from fossil fuels.

Hence when the demand, and subsequently price, for copper go up, it tends to indicate a lot of economic activity ahead.

And the price of copper hit 8-year highs last Thursday, trading at US$8,179 (AU$10,622) per tonne. It’s down a touch since then, currently at US$8,131 per tonne. But that’s still close to double the US$4,630 per tonne that copper bottomed out at on 23 March 2020. And more than 31% higher than where it was trading on 11 January last year, before anyone was taking COVID-19 seriously.

And it’s not just copper.

Iron ore, Australia’s largest export earner, is trading near historic highs of US$170 per tonne.

Then there’s gold. While down from its 6 August record (US dollar) highs of US$2,063 per ounce, the yellow metal is still up 18% since 11 January 2020. And the gold price is up 43% over the past 2 years.

All this, of course, has been good news for well-positioned ASX mining shares. But what can shareholders expect in 2021?

The world needs these Aussie commodities

As investors, it’s important to know how commodities, like copper, have been trading over the past year. Obviously, it’s even more important to get a handle on the likely prices they’ll be fetching for the year ahead.

When it comes to copper, Stephane Andre, a portfolio manager at Alphinity Investment Management, has a bullish outlook for 2021 (quoted by the Australian Financial Review):

Copper is benefiting from the green infrastructure and electric vehicle demand boost. We believe supply will struggle to meet demand growth. Market copper price expectations for 2021 and 2022 of $US3.2 a pound appear low versus the spot price of $US3.6 a pound.

Ben Cleary, a portfolio manager at Tribeca Investment Partners, is optimistic over a wider range of commodities:

The supply issues look multi-year from here. We’re comfortable the resources sector, from an earnings perspective, still looks pretty cheap versus the broader market, but it still looks cheap versus itself – in that most stocks are still trading below a mid-cycle multiple.

Like Stephane Andre, Cleary points to the growing green revolution as a trend that now supports many commodity miners:

We’ve gone from the resources sector being the red-headed step-child when it comes to ESG to being a leading industry within the ESG movement because you can’t decarbonise the world without commodities.

5 ASX 200 mining shares

With Australia’s (and most of the globe’s) interest rates at rock bottom – and forecast to remain there for the next few years – investors are increasingly eager for shares paying regular dividends.

When you’re hunting for ASX income stocks though, you want to avoid those companies that are more likely to see their share prices fall. The ideal share, at the end of the year, will not only pay you a handsome dividend, but also see its share price rise (capital appreciation).

When it comes to 5 leading ASX mining shares that could fit the bill here, we turn to Don Hamson, founder and managing director of Plato Investment Management.

As reported by the AFR, Hamson says:

BHP, Rio and Fortescue are pulling iron ore out of the ground at $US12 or $US14 a tonne, so there’s a pretty good margin there. I think at $US168 a tonne it’s probably not sustainable, it’ll probably come back a little, but even if it came back $US50 a tonne, where it was not that long ago, those miners are still going to be very, very profitable. We expect pretty good dividends from all of them.

The BHP Group Ltd (ASX: BHP) share price is up 18% over the past 12 months. BHP pays a 3.8% dividend yield, fully franked.

The Rio Tinto Limited (ASX: RIO) share price is up 20% over the past 12 months. Rio pays a 4.6% dividend yield, also 100% franked.

And last, but certainly not least, the Fortescue Metals Group Limited (ASX: FMG) is up 133% over the past 12 months. Fortescue pays a dividend yield of 7.0%, fully franked.

As for leading S&P/ASX 200 Index (ASX: XJO) dividend-paying gold miners?

Hamson likes Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL). He forecasts dividend yields of 4–5% from the gold miners in the year ahead.

In the year gone by, the Evolution share price is up 29% since 13 January, 2020. The company pays a 3.2% dividend yield, 100% franked.

The Regis share price went the other way over the past 12 months, down 13%. Regis pays a 4.2% dividend yield, also fully franked.

But what about China’s economic sabre rattling?

With China still the biggest buyer of most Aussie commodities, many investors are concerned about the impact of the recent, diplomatic-driven trade disruptions between the two nations.

Taking the long-term investment view, London-based Appian Capital Advisory’s CEO Michael Scherb, however, isn’t worried about the current trade spat (quoted by the AFR):

We are not concerned by it, we see it as a short-term dynamic and being a 10 to 15-year investor, Australia is going to continue to be a very attractive place to park our capital…

Australia for us is a primary destination. One difference between [Appian’s first fund] and now is we have a presence now in Sydney and we have team members in Brisbane, Melbourne and Perth too, so it is a real dedication to increase our exposure and invest into Australia.

Appian’s newest $1 billion fund is aimed at mining projects across the globe that should benefit from the green revolution. So far, its biggest single investment is a privately held mineral sands project in Victoria.

More reading

• 7 ASX shares to buy for 2021
• Why Newcrest (ASX:NCM) and Northern Star (ASX:NST) shares could crash lower today
• 2 quality ASX dividend shares with 6%+ yields
• These ASX dividend shares have 10% and 4% yields
• Why these leading ASX gold and tech shares could rally on through 2021

Motley Fool contributor Bernd Struben 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.

The post 5 top ASX mining shares for dividends and growth in 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3oz281T

ASX shares related to sustainable energy aren’t the only green companies likely to get a boost from the blue wave that swept through the US elections.

ASX cannabis companies could also receive some fresh tailwinds.

How the Georgia election tipped the scales for pot stocks

With Democrats – team blue – winning the runoff Senate election in the US state of Georgia last week, President-elect Joe Biden will effectively have control of both houses of Congress for the next 2 years. (That’s when midterm elections will be held, potentially changing the balance of power.)

And the Democrats have largely been more proactive in pressing for the legalisation of medicinal and recreational cannabis on a federal level.

According to Oren Shuster, CEO and co-founder of IM Cannabis Corp, which operates in Germany, Israel and Canada (quoted by Bloomberg):

I think that now, post-Covid, and with this Democratic dominance in the U.S. government, we will start to see positive movement in the approach to U.S. legalization — and that is something that will support global legalization.

What about ASX cannabis shares? 

To narrow the field down, we’ll focus on two ASX cannabis shares. Namely Creso Pharma Ltd (ASX: CPH) and Cann Group Ltd (ASX: CAN).

The Cann share price is off to a strong start in 2021, up 8.3%. Over the past 12 months, though, Cann’s share price is still down 39%.

The Creso Pharma share price has been an even stronger performer in 2021, and over the past year. Creso shares are up 31.7% so far in 2021 and 48% higher over the past 12 months.

In a release to the ASX on Friday, Creso reported that the legal US cannabis market alone is forecast to be worth US$130 billion (AU$169 billion) by 2024. The company noted that, “[r]ecent Democratic election campaigns have been run on the promise of near term cannabis policy reform.”

Those policies include the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. The MORE Act would leave the status of marijuana up to the states, decriminalising it on a national level and expunging certain marijuana related federal felony convictions. This would also likely see greater interest from many retail and institutional investors who’ve been hesitant to invest without some greater legal clarity.

Addressing the blue wave election results, Creso Pharma’s non-executive chairman Adam Blumenthal said:

The recent election result is a historic moment for the cannabis industry in the USA and these developments leave Creso very well placed to capitalise, should cannabis ultimately be decriminalised in the US through the passing of the MORE Act.

The Creso share price is up 0.9% in late afternoon trading while Cann shares are up 1.6%. The wider All Ordinaries Index (ASX: XAO), meanwhile, is down 1.0% for the day.

More reading

• Why the Cann Group (ASX:CAN) share price is moving today
• Why Accent, Afterpay, Creso Pharma, & Thorn shares are charging higher
• Why the Creso Pharma (ASX:CPH) share price rocketed 47% higher
• Why the Cann (ASX:CAN) share price has backflipped today
• Why BHP, Cann, Nick Scali, & Ramelius shares are pushing higher

Motley Fool contributor Bernd Struben 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.

The post Why ASX cannabis shares are cheering the US elections appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3oL5uPz

The Caravel Minerals Ltd (ASX: CVV) share price on the move today. This comes after the company announced it has been granted a new exploration licence.

On news of the release, the Caravel share price rose to an intraday high of 25 cents and has now dipped slightly to 24 cents, up 8.89% at the time of writing.

About Caravel

Based in Western Australia, Caravel is a gold, copper and base metals exploration and resource development company.

Its flagship Caravel Copper project, located north-east of Perth, is currently engaged in a feasibility study to determine future development. On initial estimates, the site has a mineral resource of 661.9 million tonnes of copper at a grade of 0.28%. This makes it one of the largest untapped copper resources in the Western Australian state.

What did Caravel announce?

The Caravel share price is moving higher after investors seem pleased with the company’s progress.

Caravel advised that it has received a 5-year exploration licence for its Toolbrunup project. The decision was made by the Western Australian Department of Mines, Industry Relations and Safety (DMIRS). Covering an area of 114 square kms, the licence allows Caravel to begin exploration works between Tambellup and Gnowangerup.

Previously, the company identified mafic sill and dyke structure through its magnetic survey data in the South West Yilgarn Terrane. Caravel said that the magnetic structure is around 15km long with no surface exposure caused from surface weathering and shallow cover.

Looking at the geochemical sampling results gathered, the company recorded significant nickel, copper, and platinum deposits. Caravel advised that the discovery of magnetic anomaly is somewhat similar to the style and size of the Gonneville complex at the Chalice Mining Ltd (ASX: CHN) Julimar Project.

The company noted that it’s currently engaged in discussions with landowners and has completed reconnaissance field visits to the Toolbrunup project. Furthermore, Caravel is looking to conduct a low-cost evaluation for the project using geochemistry methods, and an electromagnetic survey for pinpointing magmatic sulphide deposits.

Caravel share price snapshot

The Caravel share price has been a strong performer over the last year, rising to more than 600%.

During April, the company’s shares dipped to a historic low of 1.5%, before accelerating to multi-year highs.

Based on the current share price, Caravel commands a market capitalisation of $71 million.

More reading

• Brainchip (ASX:BRN) share price soars 52% in 5 days
• 3 ASX growth shares to buy right now
• What’s moving the Cogstate (ASX:CGS) share price today?
• Douugh (ASX:DOU) share price remains suspended after listing rule breaches were found
• Angry Tyro (ASX:TYR) customers jump ship

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Caravel (ASX:CVV) share price is up 8% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3s9NuQO

The Brainchip Holdings Ltd (ASX: BRN) share price is currently trading 11.11% higher for the day. It marks the fifth day of gains for the artificial intelligence (AI) company, in an extraordinary run which has seen the Brainchip share price rise from 42.5 cents to 65 cents — a 52% rise.

What’s behind the Brainchip share price momentum?

Despite being no recent news out of the AI provider, it is likely a number of announcements in late December are driving the Brainchip share price.

New deal inked with NASA

On 23 December, Brainchip announced that the United States National Aeronautics and Space Administration (NASA) had placed an order for its Akida Early Access Evaluation Kit.

Under the agreement, the kit will enable NASA to evaluate how the Akida technology can be used in programs needing a neuromorphic processor that meets spaceflight requirements. In exchange, BrainChip will collect a payment that offsets expenses to provide ongoing support.

According to the company, its Akida processor is well suited for spaceflight and aerospace applications:

The device is a complete neural processor and does not require an external CPU, memory or Deep Learning Accelerator. Reducing component count, size and power consumption are paramount concerns in spaceflight and aerospace applications.

Additionally, Akida provides incremental learning. With incremental learning, new classifiers can be added to the network without retraining the entire network. The benefit in spaceflight and aerospace applications may be significant as real-time local incremental learning allows continuous operation when new discoveries or circumstances occur.

Licensing first

Additionally, 23 December also saw another significant announcement with Brainchip signing its first ever intellectual property license agreement for Akida.

The agreement states that BrainChip will deliver its Akida technology to Renesas Electronics America for use as a system on chip product.

About the Brainchip share price

Brainchip needs little introduction, being one of the most frequently traded shares on the ASX on a regular basis.

The company listed on the ASX back in late 2011 and initially could not catch a break, with the Brainchip share price falling by 80% in the 8 years since. However, 2020 was been a turning point for the small cap after being added into the S&P/ASX All Technology Index (ASX: XTX).

Its shares had a remarkable year, rising by 1,220%, even reaching a market valuation of $1 billion in September.

More reading

• Here’s why the BrainChip (ASX:BRN) share price jumped 15% today
• This is the latest speculative ASX tech buy from Citigroup
• Why the BrainChip (ASX:BRN) share price rocketed 57% higher
• Why AVZ Minerals, BrainChip, BSA, & Credit Corp shares are storming higher
• BrainChip (ASX:BRN) share price on watch following major announcements

Motley Fool contributor Daniel Ewing 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.

The post Brainchip (ASX:BRN) share price soars 52% in 5 days appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39iF7tI

Are you looking to add a growth share or two to your portfolio? Then take a look at the three ASX shares listed below.

Here’s why they could be growth shares to buy right now:

Altium Limited (ASX: ALU)

With the Altium share price down almost one-third from its 52-week high, it’s no surprise to see brokers recommending it as a buy. Especially given the electronic design software provider’s outstanding long term growth potential thanks to its exposure to the rapidly growing Internet of Things and AI markets. These are driving strong demand for its Altium Designer and Altium 365 software and also its other businesses such as Octopart. Morgan Stanley has an overweight rating and $40.00 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Another growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. Thanks to its industry-leading pokie machines and the huge potential of its digital and social gaming business, Aristocrat Leisure has been tipped to grow strongly over the 2020s. Especially once the pandemic passes and casinos around the world are open as normal again. Analysts at Citi recently put a buy rating and $40.60 price target on its shares.

ResMed Inc. (ASX: RMD)

A final growth share to look at is ResMed. It is a medical device company which has a focus on sleep treatment solutions. It also creates ventilators, which have been experiencing incredible demand because of the pandemic. Over the last decade the company’s revenue and earnings have grown at a very strong rate thanks to the quality of its products and its large and growing market opportunity. In respect to the latter, management estimates that there are almost one billion people with sleep apnoea globally and a little under half a billion people that suffer from chronic obstructive pulmonary disease (COPD). Morgans has an add rating and $30.99 price target on ResMed’s shares.

More reading

• How to turn $20,000 into $225,000 in 10 years with ASX shares
• What this broker thinks of the Altium (ASX:ALU) share price
• 2 top ASX growth shares to buy in January
• ASX 200 rose 1.6%
• 3 mid cap shares hitting 1-month lows on the ASX today

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 recommends Altium. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 ASX growth shares to buy right now appeared first on The Motley Fool Australia.

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

The Cogstate Limited (ASX: CGS) share price has been fluctuating today after the company released a business update to the ASX.

Earlier today the Cogstate share price was trading 2.33% higher but has now dipped into the red and is down by 0.47% to $1.07 per share.

About Cogstate 

Cogstate is a neuroscience technology company aiming to optimise brain health assessments. As such the company provides services to measure cognition and optimise the assessment of brain health to aid in new medicine development and provide earlier clinical insights. 

What did Cogstate announce?

This morning, ASX healthcare company Cogstate released its quarterly sales update. The company reported that its clinical trials sales contracts executed during the last quarter of 2020 amounted to US$14.3 million.

That result takes the total value of sales during the first half of FY21 to US$22.6 million, which is down from US$26.9 million the prior corresponding period. The company noted that the global pandemic has resulted in sales delays for the company.

In the healthcare segment of the business, Cogstate also announced that it has received a payment from Japanese pharmaceutical giant Eisai. The payment is part of a global license agreement, in which Eisai has agreed to pay Cogstate an upfront royalty of US$15 million to exclusively distribute its digital cognitive technologies. In addition, the agreement provides for cumulative royalties of at least US$30 million over the term of the license, unless terminated earlier.

Management commentary

The strong half year result follows the record US$46.0 million of sales contracts executed in FY20.

Cogstate CEO Brad O’Connor welcomed the news, saying:

In the context of the global pandemic and the various stay-at-home orders in place around the world, which have certainly made trial recruitment and participation more difficult than normal, the clinical trials sales result is very pleasing. This result demonstrates that the level of demand from pharmaceutical companies for Cogstate technology and services that was evident during FY20 has continued into FY21, notwithstanding the challenging external environment.

The company also noted that its recent deal signed with Eisai has not been included in the quarterly or half yearly results.

The Cogstate share price is trading 194% higher than this time last year, and on current prices the company has a market capitalisation of $182 million.

More reading

• CogState (ASX:CGS) share price up 44% today and a mind-blowing 207% in 2020

Motley Fool contributor Daniel Ewing 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.

The post What’s moving the Cogstate (ASX:CGS) share price today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bqQt1f