Do you have some money to invest into some ASX shares? This article is about two ideas that could be interesting options.

Businesses that are seeing underlying growth of demand might be able to produce profit growth over the longer-term.

Kogan.com Ltd (ASX: KGN)

Kogan is a leading e-commerce ASX share that sells a wide variety of items and products.

Its website sells things like TVs, computers, phones, drones, appliances, heating and cooling, home and garden items, furniture, office supplies, toys, video games, clothes, sports gear, tools, books, alcohol and grocery items.

Kogan also offers a number of services including mobile, internet, energy, credit cards, insurance, pet insurance, life insurance, travel, cars, superannuation and home loans.

The business has a growing number of customers, including Kogan First members. Those members get free shipping, discounts and priority customer service.

The Kogan share price has declined by around a third over the last three months.

Kogan has been telling the market about its inventory problems and that its rapid growth has led to near-term supply chain inefficiencies.

To sort out its excess inventory, the ASX share is spending more on marketing and increasing its promotional activity. However, the demurrage issue that it has been facing has been resolved.

Customer demand in April 2021 remained consistent with the levels seen in the three months to March 2021, and below the levels seen in the nine months to December 2020. The quarter ending 31 March 2021 saw gross sales growth of 47% with gross profit increasing 54%.

Kogan says the longer-term fundamentals remain very attractive with online sales only accounting for a small percentage of total retail sales in Australia and New Zealand.

According to Commsec, the Kogan share price is valued at 17x FY23’s estimated earnings.

Betashares Global Cybersecurity ETF (ASX: HACK)

This ASX share is an exchange-traded fund (ETF) that is focused on the world’s leading cybersecurity companies.

As BetaShares points out, governments, companies and households around the world are facing a tougher fight against cyber criminals who want to steal information or disrupt their IT related activities. Cybersecurity is increasingly important as more of the global economy heads online.

There are more devices online and it’s an arms race for cybersecurity businesses.

Global spending on cybersecurity has increased at an annual rate of around 8% since 2011. Major public and private organisations continue to spend more on cybersecurity. The global cybersecurity market is expected to be worth $203 billion in 2021 and $248 billion in 2023.

Most of the portfolio is invested in US shares, though there is a weighting of just over 3% to Israel and the UK.

The ASX share has around 40 holdings, with the current biggest 10 being: Cisco Systems, Accenture, Crowdstrike, Zscaler, Splunk, Proofpoint, Fortinet, Akamai Technologies, Fireeye, Juniper Networks.

Despite the annual management fee of 0.67% per annum, Betashares Global Cybersecurity ETF has delivered an average return per annum of 19.5% since inception in August 2016.

More reading

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• Why Corp Travel, Domino’s, Kogan, & Zip shares are storming higher
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• ASX 200 Weekly Wrap: ASX whipsaws in volatile week
• These 2 shares topped the ASX 200 today

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

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

What happened

Shares of electric car company Tesla (NASDAQ: TSLA) surged higher on Monday. Shares were up about 5.7% as of 3:30 p.m. EDT.

The growth stock’s gain was fueled both by a bullish day in the stock market and news that Tesla has reportedly entered into an agreement with Luminar Technologies (NASDAQ: LAZR) for testing and development of Luminar’s laser-sensor technology.

So what

Highlighting why the overall market likely helped Tesla stock’s gain on Monday, the Nasdaq Composite was up more than 1.6% as of this writing – and many growth stocks like Tesla were up several percentage points or more.

Meanwhile, news that Tesla is reportedly open to testing the laser-sensor technologies for autonomous driving that CEO Elon Musk has previously heavily criticized may have investors more confident in the company’s long-term self-driving technology roadmap.

Though Tesla stock is up today, it’s still down about 14% year to date and 32% below its 52-week high.

Now what

Given the stock’s enormous run-up last year and its recent sharp decline, there’s likely plenty of volatility ahead for Tesla stock.

Investors, however, should remain focused on the company’s underlying business. Though Tesla’s sales are growing rapidly, the company is still heavily dependent on sales of zero-emission vehicle credits for much of its profitability. But management believes Tesla is on a path to eventually achieve industry-leading operating margins.

 

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

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• Crypto crash sends Bitcoin 30% lower to under US$40,000
• Technology, Toyota and The Big Short: The myriad problems with Tesla

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The Aroa Biosurgery Ltd (ASX: ARX) share price is on the move on Tuesday morning.

At the time of writing, the soft-tissue regeneration company’s shares are up 1.5% to $1.20.

Why is the Aroa Biosurgery share price rising?

Investors have been buying the company’s shares this morning following the release of a better than expected full year result.

For the 12 months ended 31 March, Aroa reported product sales of NZ$21.6 million. While this was down 2% year on year, it exceeds the company’s guidance of NZ$21 million.

Things were better on a constant currency basis, with product sales coming in at NZ$23.1 million. This would have been a 5% increase on the prior corresponding period.

On the bottom line, Aroa reported a normalised loss before income tax of NZ$7.4 million. This compares to a loss of NZ$3.9 million in FY 2020.

Management was pleased with the result, particularly given how COVID-19 headwinds in the US significantly impacted procedure volumes.

Outlook

Pleasingly, management believes the company is well-placed as it enters into FY 2022.

In light of this, the company expects its FY 2022 product sales to grow 39% to 53% to between NZ$30 million and NZ$33 million.

This is based on a NZD/USD exchange rate of US$0.72 and is subject to no resurgence of COVID-19 in the United States, its US sales and marketing distributor TELA Bio delivering strong growth, and continued improvement in US medical procedure numbers.

However, as a result of an increased investment into its sales force, its operating earnings will be negative.

Aroa’s Founder and CEO, Brian Ward, said: “We believe that supported by our newly expanded fully dedicated sales team, Aroa is poised to continue to grow strongly this year by ramping up Myriad sales and penetrating into further accounts.”

“With the growing body of evidence to validate the clinical efficacy of Myriad, we expect Myriad will not only help deliver strong growth in FY22, but it will also underpin growth in the medium term. We anticipate FY22 will be a set-up year for Symphony, which will ramp up in FY23 to deliver a further wave of growth. Symphony has the potential to significantly add to our existing Endoform business in the outpatient wound centre setting.”

“We are pleased to have completed the recent sales transition from Appulse and with an expanded product portfolio, we consider Aroa is well placed to grow in the emerging post-COVID-19 healthcare environment, where clinical performance and value will come under increasing scrutiny. Aroa’s products are designed to improve clinical outcomes at a cost that improves patients’ access to the benefits of biologics, and to drive better healing. We are focused on unlocking regenerative healing for everybody,” he concluded.

More reading

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• An ASX investor’s guide to ESG-focused ETFs
• Crypto is crashing: Is now the time to invest?
• Rumble (ASX:RTR) share price in focus as major drilling campaign kicks off
• Why the Airtasker (ASX:ART) share price will be on watch today

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The RAIZ Invest Ltd (ASX: RZI) share price is edging lower on Tuesday.

At the time of writing, the mobile-first financial services platform provider’s shares are down 1% to $1.31.

Why is the Raiz share price edging lower?

The Raiz share price is on the move today after the company announced the completion of its share purchase plan (SPP).

This SPP was part of a wider capital raising announced in April that was aiming to raise a total of $13.2 million from investors. This comprised $10.2 million via an institutional placement and $3 million from the SPP.

While the company successfully raised the $10.2 million at $1.50 per share last month, things weren’t quite as positive for the SPP.

According to today’s release, just 37 retail shareholders took part in the SPP. This led to the company raising just $218,700, bringing its total to just over $10.4 million, which was well short of target.

However, this wasn’t overly surprising given the company’s decision to undertake the SPP at the same price as the institutional placement.

Since announcing the capital raising on 28 April, the Raiz share price has lost approximately 20% of its value. This left the Raiz share price trading 11% lower than the offer price at $1.33 at the close of play on Monday. This means it would have been cheaper to buy shares on-market than take part in the SPP.

Why is the company raising funds?

The company intends to use the proceeds to accelerate customer growth, develop new products and services, and expand into new geographies.

Some of the funds are likely to be used to support the growth plans of the recently acquired Superestate business. Superestate is a niche integrated superannuation and Australian residential property investment platform.

Commenting on the acquisition, CEO George Lucas said: “This acquisition, the first in our five-year history, marks an important milestone for the group by demonstrating organic growth is not our only option to increase funds under management (FUM) and Active Customers. Other acquisitions are on our radar as we actively look for opportunities in the Asia Pacific region.”

“The acquisition provides tangible benefits to the customers of both financial services groups. Raiz secures the capability to offer residential property as an asset class in and outside superannuation in much the same way that we successfully introduced Bitcoin to our customers, giving them a means of investing in cryptocurrency.”

Despite this recent weakness, the Raiz share price is still up over 30% year to date.

More reading

• What’s happening with the Raiz Invest (ASX: RZI) share price?
• Why the Raiz Invest (ASX:RZI) share price has slumped 5%
• Raiz Invest (ASX:RZI) share price on watch after Q3 update

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Last week, we discussed how the ethical investing trend is taking off in the ASX exchange-traded fund (ETF) sector. ESG (environmental, social and corporate governance) investing has grown in scope and scale as more and more investors want to put their money where their values lie. Of course, you can sniff out individual companies that might align with your values. But many investors are using ETFs to do this legwork for them, as well as taking advantage of the diversification and passivity that an ETF can offer.

Breaking down an ESG ETF

When it comes to ethical ESG ETFs, there are normally two classes that a fund will fall into. There are funds that follow a broad market index, such as the S&P/ASX 200 Index (ASX: XJO), but then ‘filter’ out any unsavoury companies from the index. And then there are those that invest in a particular ESG-aligned industry, such as renewable energy. There is a big difference between these two approaches.

Let’s first look at the index funds. The BetaShares Australian Sustainability Leaders ETF (ASX: FAIR) is one such fund. This ETF tracks an index that screens ASX companies based on ESG criteria such as fossil fuel production, gambling, tobacco, alcohol, environmental destruction and animal cruelty. It holds 80 ASX shares, which includes some big names like Telstra Corporation Ltd (ASX: TLS), CSL Limited (ASX: CSL) and Xero Limited (ASX: XRO). As such, you are still getting some of the diversification benefits a simple ASX 200 index fund might provide, but without the companies that have been identified as not possessing ESG characteristics.

There are other ASX ESG ETFs that follow a similar methodology. The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) is one. The VanEck Vectors MSCI Australian Sustainable Equity ETF (ASX: GRNV) is another. There are even funds available that take this approach and apply it to overseas shares instead of ASX companies. Such funds include the VanEck Vectors MSCI International Sustainable Equity ETF (ASX: ESGI) and the BetaShares Global Sustainability Leaders ETF (ASX: ETHI).

What about sector-specific ETFs?

That’s only one side of the ASX ethical ESG ETF coin though. There are also a number of funds out there that chase specific ESG sectors. Take the ETFS Battery Tech & Lithium ETF (ASX: ACDC). This fund aims to give exposure to “the energy storage and production megatrend, including companies involved in the supply chain and production for battery technology and lithium mining.”

Whilst this fund does not have a specific ESG mandate, it is still focused on an industry with ‘green’ credentials in aiming to reduce greenhouse gas pollution. However, a fund like this arguably provides less diversification than one of the funds named above. That’s because all of the holdings in this ETF are companies that operate in a very specific sector.

The same can be said of the VanEck Vectors Global Clean Energy ETF (ASX: CLNE) or the BetaShares Climate Change Innovation ETF (ASX: ERTH).

Whilst there is nothing wrong with this approach, it’s worth pointing out that there is a lot more concentration on one particular section of the ESG market. This carries its own set of risks compared to a more diversified fund.

Foolish takeaway

Ethical ESG investing looks as though it’s here to stay as an investing trend. But if you are seeking out ESG funds to invest in, make sure you know what kind of exposure you are looking for. Not all ethical ETFs are equal — some of these funds might be offering a portfolio that’s too concentrated for your goals, or risk profile. Just because something has ‘ESG’ or ‘ethical’ doesn’t mean it’s automatically a good investment.

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

Cryptocurrency has always been volatile, but it’s experienced quite the wild ride over the past few months. After shattering records and reaching staggeringly high prices, cryptocurrencies have taken a sharp turn for the worse.

Bitcoin (CRYPTO: BTC), which reached a high of around $65,000 per token last month, has fallen by more than 30% over the past 10 days, as of this writing. Other popular cryptocurrencies Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) are also down around 30% over the same time period.

Sometimes, market crashes are beneficial to investors because they’re an opportunity to buy stocks at bargain prices. If you’ve been eager to invest in cryptocurrencies but are hesitant about the sky-high prices, a crypto crash could make them more affordable. But does that mean you should invest?

Consider your tolerance for risk

The latest crypto crash is further proof of this sector’s volatility. Considering cryptocurrency’s history, a 30% drop is fairly mild. Bitcoin, for example, has fallen by more than 80% on three separate occasions since 2012, according to data from Visual Capitalist. 

This year alone, Bitcoin has already experienced several steep drops. So this recent crash is par for the course — and there will likely be many more crashes like this in the future.

Bitcoin Price data by YCharts

Before you invest in cryptocurrency, think about whether you can tolerate this level of risk. Although Bitcoin has always managed to bounce back from its slumps, there’s no guarantee it will always recover.

If you know you’re going to lose sleep when your investments plummet overnight, crypto may not be the best investment for you. But if you have the stomach for this type of turbulence, you may have the right personality for investing in crypto.

Choose your crypto carefully

If you decide to invest in cryptocurrency, buying when prices are lower may be a wise move. Especially if you’re investing in a higher-priced currency like Bitcoin, you can get more for your money when buying during a downturn.

Just be sure you’ve done your research before you invest. The fact that a cryptocurrency is more affordable doesn’t necessarily mean it’s a smart investment, so consider all your options before you buy. The goal is to buy investments you can hold for the long term, so make sure you’re choosing the right cryptocurrency for you.

Bitcoin is the biggest name in the crypto space, and it’s also the oldest cryptocurrency. This gives it a leg up on the competition. However, it’s an energy-intensive cryptocurrency, which poses environmental concerns. In fact, Tesla CEO Elon Musk recently announced that the company would no longer accept Bitcoin as a form of payment because of its environmental impact.

Ether is the second-most popular cryptocurrency, and it uses the popular blockchain Ethereum — which is also the blockchain behind non-fungible tokens (NFTs) and decentralized finance. Because the Ethereum blockchain has a variety of uses, that gives it an advantage. In addition, developers are currently working on Ethereum 2.0, which will be more energy-efficient and environmentally friendly.

Dogecoin is one of the riskiest cryptocurrencies, and buying this particular token is more similar to gambling than true investing. If you do choose to go this route, be sure you make this decision carefully.

Regardless of which option you choose, only invest money you can afford to lose. Crypto is still a high-risk investment, even if it is more affordable right now. While cryptocurrency isn’t right for everyone, if you’ve decided to invest, you can save some money by investing when prices are lower.

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

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• Ethereum vs. Bitcoin: Which is the better buy?

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Shareholders will be hoping that the skyrocketing Rumble Resources Ltd (ASX: RTR) share price can find another burst of energy today after it started its major drilling program.

The zinc-lead explorer announced it has commenced diamond and reverse circulation drilling at its prized Earaheedy project and is targeting a depth of at least 30,000 metres.

Why the Rumble share price has surged

The Rumble share price surged over 270% to 67 cents since mid-April after management unveiled a major Zinc-Lead discovery at its Chinook prospect. Chinook is within the Earaheedy project.

This latest drilling campaign will help the explorer get a better understanding of the style of mineralisation and scope out the discovery.

You never know, it may even make further new discoveries while they are at it.

Drilling campaigned funded from capital raise

Rumble won’t have an issue funding its drilling program, which is typically a very expensive exercise. But since it raised $40 million, management is confident it can expedite the scoping out of the discovery at the Chinook and other regional prospects.

Chinook has so far been the star of the show. Rumble fast tracked two holes for assay that confirmed a major discovery. But 24 other holes have assays pending.

Rumble is hoping to repeat its success with its Magazine prospect, which is just south-east of Chinook. The assays from the seven holes it drilled for 940 metres are pending too.

Another catalyst for the Rumble share price

The results from these assays are probably a bigger catalyst for the Rumble share price than today’s news.

But there is no exact timing on when these will be made available. Management was only willing to say that the results are forthcoming.

“Assays are anticipated shortly,” said Rumble in its ASX statement.

“Once all assays are received and analysed, Rumble will release a comprehensive announcement of the results and the next steps, which include this drill program.”

Project background

The Earaheedy Zinc-Lead Project is located approximately 110km north of Wiluna, Western Australia.

The project is 75% owned by Rumble with the balance held by Zenith Minerals Ltd (ASX: ZNC).

The prices of zinc and lead have joined the commodity supercycle party and have risen strongly over the past year.

While its mainly lithium that is dominating headlines when it comes to the electric vehicle revolution, lead is also used in batteries.

Zinc is used mainly to galvanise steel, but some experts believe zinc-ion batteries are a better alternative to lithium-ion for some applications.

More reading

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• The Rumble Resources (ASX:RTR) share price is surging 26% today

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The Airtasker Ltd (ASX: ART) share price will be on watch as it comes out of a trading halt today. This follows the company’s update on its recently launched share placement.

Before being temporarily halted at market close last Thursday, Airtasker shares closed at $1.08.

Quick take on Airtasker

Established in 2012, Airtasker is an online marketplace that allows users to outsource everyday tasks to people who are seeking work. Jobs can range from home cleaning, office admin, handyman work, photography, computer and IT support, among others.

Airtasker makes its money from a service fee that is deducted from the agreed offer price of the services.

What was announced?

Airtasker shares could be on the move today as investors digest the company’s impending share dilution.

According to this morning’s release, Airtasker advised it has successfully completed a $20.7 million fully underwritten share placement. Offered to institutional, sophisticated, and professional investors, the placement listed the new ordinary shares at $1 each. This represents a discount of 7.4% on the company’s last closing price of $1.08 on 20 May 2021.

Over 20.7 million new shares will be issued, reflecting around 4.9% of Airtasker’s fully diluted pre-offer issued share capital. The placement received strong support from both new and existing domestic investors. However, the company noted that the allocations of the shares were heavily weighted in favour of existing shareholders.

The newly created shares will be issued using the company’s existing placement capacity. Under listing rule 7.1, this allows up to 15% of its shares to be issued without shareholder approval.

The monies raised will be primarily used to fund the Zaarly Inc. acquisition, a United States-based local services marketplace. In addition, Airtasker will seek to further expand into key city markets across the United States and the United Kingdom.

Share price summary

Since Airtasker’s successful initial public offering (IPO) listing in late March 2021, the company’s share price has remained relatively flat. After accelerating more than 120% within the first few days of listing, profit taking took hold, sending Airtasker shares lower.

On valuation grounds, Airtasker presides a market capitalisation of roughly $424 million, with close to 393 million shares outstanding.

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There’s a small-cap ASX share that’s more than doubled in the past year, but a couple of fund managers reckon there’s more upside yet.

Non-bank money lender Wisr Ltd (ASX: WZR) was trading at 15 cents 12 months ago, but after market close on Monday it had spiked up to 32 cents.

According to Shaw and Partners portfolio manager James Gerrish, the company has an “exciting” 1 to 3 years ahead of it.

“You take a bunch of loans and create a security out of them. And you sell those loans on a set yield,” he said in his Direct From The Desk podcast.

“We hold Wisr in the Market Matters Emerging Companies portfolio. We’re bullish on that stock.”

Millennials + gen Z = a huge market

Shaw and Partners senior analyst Danny Younis reckons non-bank lenders have a big advantage with younger consumers.

“Millennials and generation Z are less likely to use cash these days. They’re less likely to use credit cards these days,” he said in the podcast.

“And they’re very distrustful of the big four banks.”

This factor gives Wizr a massive total addressable market (TAM) lending just in this country.

“The market is huge. Right now the TAM is $100 billion in Australia,” said Younis. 

“And a big chunk of that is credit cards… Credit card debt in Australia is running at about $40 billion. That is a huge issue.”

Wisr shares have 70% upside

Despite the stock doubling in the past year, Shaw and Partners have a 55 cent price target for Wisr. This is another 70% up from the current level.

“The key over the next 12 to 18 months is a couple of things. One, you need to get customer numbers up — go from 400,000 up to a million,” said Younis.

“The second is to keep your bad debts low. So you want to continually have a prime book. You don’t want to be a subprime lender.”

Younis and Gerrish were complimentary about the people in charge at Wisr.

“The management team is very, very strong… They’re really focused on customer analytics and data analytics, and utilising technology to really drive that adoption rate,” said Younis.

“When they had their investor day 3 or 4 months ago and we finally got to meet them, it really proved to me this company is thinking ahead of the curve.”

Younis added the chief executive Anthony Nantes formerly worked for small business lender Prospa Group Ltd (ASX: PGL).

“A really great background in this whole lending space… and he’s got a large chunk of shares.”

Wisr currently sits at a market capitalisation of $345 million. Adcock Private Equity Pty Ltd is the biggest shareholder with a 15.8% stake.

More reading

• Here’s why the Wisr (ASX:WZR) share price is up 5% today
• Why the Wisr (ASX:WZR) share price is rocketing 6%

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The TechnologyOne Ltd (ASX: TNE) share price will be one to watch closely today.

This follows the release of the enterprise software company’s half year results this morning.

How did TechnologyOne perform in the first half?

TechnologyOne was a strong performer during the first half of FY 2021, thanks largely to continuing strong demand for the TechnologyOne Global SaaS ERP Solution.

According to the release, for the six months ended 31 March, TechnologyOne reported a 5% increase in total revenue to $144.3 million. This was underpinned by a 41% jump in SaaS Annual Recurring Revenue (ARR) to $155.8 million thanks to a 21% increase in large-scale enterprise SaaS customers to 576.

Due partly to a 5% reduction in expenses thanks to significant efficiencies, the company’s profits grew at an even quicker rate. First half profit after tax was up 48% over the prior corresponding period to $28.2 million.

One slight disappointment was that its cash flow generation was negative $2.9 million. However, this is expected to be stronger over the full year and didn’t stop the TechnologyOne board from increasing its dividend by 10% to 3.82 cents per share.

Management commentary

TechnologyOne’s CEO, Edward Chung, commented: “I am pleased to announce that we have delivered our 12th year of record first half profit and revenue and record SaaS fees.”

“Our Global SaaS ERP is the future of enterprise software. It provides our enterprise customers a mission critical solution to run their entire business on any device, anywhere at anytime. It also allows them to innovate and meet the challenges ahead with greater agility and speed, without having to worry about underlying technologies. This makes life simple for them.”

Looking ahead, Mr Chung said: “As in previous years, our first half result is not necessarily indicative of our full year. In particular, as we continue to aggressively grow our SaaS business we will also continue to reduce our legacy licence fee business, which will be down approximately $7m over the full year. While this has a significant immediate impact on our P&L over the full year, this is an integral part of our strategy to grow our SaaS business and the recurring revenue base.”

Outlook

Despite previously stating that its second half would be the stronger half in FY 2021, this isn’t expected to be the case any longer.

Management is guiding to a full year net profit before tax of $94.3 million to $98.6 million. This represents year on year grow of 10% to 15% on an underlying basis.

Looking further ahead, management is targeting ARR of over $500 million by FY 2026. And thanks to the economies of scale from its Global SaaS ERP solution, it also expects continuing profit before tax margin expansion to 35%.

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• 2 quality ASX 200 tech shares to buy for May

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