The S&P/ASX 200 Index (ASX: XJO) fell by around 0.4% today to 6,800 points.

One of the main highlights, or lowlights, of the day was the latest lockdown implemented in one of Australia’s largest cities.

These are some of the might news stories of the day:

ASX travel shares drop

The ASX travel sector saw a bit of a decline today after it was announced that the Greater Brisbane region would be going into a three-day lockdown to try to stop the spread of COVID-19.

Coming up to Easter, this is just the news that businesses linked to tourism didn’t want to hear.

The Webjet Limited (ASX: WEB) share price dropped 2.8%, the Flight Centre Travel Group Ltd (ASX: FLT) share price fell 3%, the Qantas Airways Limited (ASX: QAN) share price dropped 0.8%, the Corporate Travel Management Ltd (ASX: CTD) share price fell 1.6% and the Helloworld Travel Ltd (ASX: HLO) share price fell 2.7%.

REA Group Limited (ASX: REA) and Mortgage Choice Limited (ASX: MOC)

The Mortgage Choice share price shot higher by around 62% today after it was announced that REA Group wanted to buy the mortgage broking business. However, the REA Group share price fell 1.9%.

REA Group has entered into a scheme of arrangement to buy Mortgage Choice at a share price of $1.95 per share. The offer represents an enterprise value of approximately $244 million.

It has a loan book of $54 billion and settlements of $11 billion in the 12 months to December 2020. Mortgage Choice reported net revenue of $22.2 million and net profit after tax of $4.1 million for the six months to 31 December 2020.

REA Group said that this aligns with its financial services strategy, it would provide a compelling opportunity to establish a leading mortgage broking business with increased scale and it would complement the existing Smartline broker footprint resulting in greater national broker coverage.

The proposed transaction is expected to be immediately earnings per share (EPS) accretive for REA Group with the potential for future cost and revenue synergies.

Mortgage Choice Chair Vicki Allen said:

This is a fantastic milestone for Mortgage Choice. Joining the REA network creates a significant opportunity to leverage its deep digital capabilities and expertise, combined with access to a large and engaged consumer audience.

REA Group is going to fund this deal with its debt facilities. The board of Mortgage Choice have unanimously recommended that shareholders vote in favour of the takeover.

Synlait Milk Ltd (ASX: SM1)  

The Synlait share price fell more than 4% today after the dairy manufacturing business announced its FY21 half-year result. It suffered a significant decline of profit.

Revenue grew by 19% to $664.2 million. However, earnings before interest, tax, depreciation and amortisation (EBITDA) went down 29% to $47.7 million and net profit after tax was down 76% to $6.4 million.

Synlait said that it’s continuing to experience significant uncertainty and volatility within its business. As a result of that, particularly because of ongoing uncertainty with A2 Milk Company Ltd (ASX: A2M) demand, the company’s current outlook suggests a broadly breakeven FY21 net profit result.

The Chair of Synlait, Graeme Milne, said:

Our first half was challenging, and we continue to find ourselves in a period of significant uncertainty and volatility as Synlait faces into several headwinds. This is impacting our short-term operations and will impact our full year 2021 financial result.

More reading

• Why Immutep, Inghams, REA Group, & Synlait shares are sinking
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• Why top brokers want you to buy the embattled IAG (ASX:IAG) share price
• ASX 200 down 0.1%: Computershare raises $500m, REA Group announces acquisition

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 Helloworld Limited. The Motley Fool Australia owns shares of and has recommended A2 Milk, Corporate Travel Management Limited, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Helloworld Limited, and REA 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 Integrated Research Limited (ASX: IRI) share price had a superb day today. Integrated Research shares closed the day up 7.66% to $2.39 a share after closing at $2.21 last Friday and opening at $2.30 this morning. The shares were as high as $2.43 during intra-day trading as well, a rise of more than 9% at the time.

However, zooming out and it becomes clear that today’s moves are just some sugar on what has been a very unpleasant sandwich investors have had to endure over the past year. Even after today’s gains, Integrated Research shares are still down more than 50% from the company’s 52-week high of $4.92 that we saw back in August last year. They are also at a similar level to what you could have purchased them for back in 2015.

So who is this company? And why are Integrated Research shares doing so well today?

A well-integrated company?

Integrated Research is a company that trades in IT solutions. It writes and sells software platforms that assist business clients in simplifying and optimising their digital operations and data. It does so through three product offerings: IR Collaborate, IR Infrastructure and IR Transact. All three of these products are available through Integrated Research’s Prognosis platform.

The company can boast some A-list clients, including Commonwealth Bank of Australia‘s (ASX: CBA) BankWest, the US telco Verizon Communications Inc (NYSE: VZ), Ford Motor Company (NYSE: F) and the US pharmacy chain Walgreens of Walgreens Boots Alliance Inc (NASDAQ: WBA).

Software-as-a-Service (SaaS) companies have been very popular with ASX investors in recent years. But, as we touched on earlier, things haven’t been going Integrated Research’s way over the past year or two. the company was hard hit by the coronavirus pandemic last year. Business closures and purchasing deferrals have resulted in revenue and profit writedowns for the company. A sharply rising Aussie dollar over the past year or so also hasn’t helped.

In fact, it was only last month that Integrated Research gave us a half-year earnings update for the six months to 31 December 2020. In this update, Integrated Research told investors that revenues were down 56% on the prior corresponding period. While net profits after tax had collapsed 99% to $129,000.

Why are Integrated Research shares up today then?

At first glance, it’s not entirely obvious why Integrated Research shares are rising so enthusiastically. The last piece of official news out of the company came back on 22 March. That was a notice that Integrated Research’s chair Paul Brandling had resigned from the company effective 20 March. He has been replaced as chair by Peter Lloyd.

The only clue we have to today’s massive share price movement is trading data from the ASX. ASX data shows that trading volume today is, at the time of writing, sitting at 448,000 shares. That’s well above the company’s 5-day average of ~190,000 shares, and well exceeding Friday’s number of 142,000 shares. This could be indicating that a large fund manager or other institutional investor has been initiating a large positioning in the company.

Whatever the cause, it has been an indisputably good day for Integrated Research shareholders. On the current share price, the company has a market capitalisation of $408.15 million.

More reading

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Sebastian Bowen owns shares of Ford. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Integrated Research Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Verizon Communications. 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 88 Energy Ltd (ASX: 88E) share price is on the move today after the company announced an operations update. During mid-afternoon trade, the energy exploration company’s shares are swapping hands for 3.5 cents, up 12.9%.

Let’s take a close look and see what 88 Energy updated the ASX with.

What did 88 Energy announce?

Investors are pushing the 88 Energy share price higher after positively receiving the company’s latest news.

In its announcement, 88 Energy advised it has detected potential hydrocarbon-bearing zones whilst conducting drilling operations at its Merlin-1 well. The site is located within the company’s Project Peregrine in the northern area of the National Petroleum Reserve, Alaska (NPR-A).

88 Energy revealed that the Nanushuk Formation, which consists of the primary targets for the Merlin-1 well, was found to be roughly 600 feet low to prognosis. In addition, it is estimated to be around 500 feet thicker than that encountered in the Willow Oil Field, north of the Project Peregrine.

The drilling data highlighted that the gamma log indicates the presence of more sand packages than in the Willow Oil Fields. Furthermore, it stated that sand packages in the Merlin-1 well are generally cleaner in nature. However, the reservoir quality is expected to be known when the wireline logging is complete.

The company said that oil shows were recorded over multiple intervals n the Nanushuk while drilling Merlin-1. It also observed relatively weak to moderate ‘dry’ fluorescence with slow-to-moderate and sometimes fast streaming cut when exposed to solvent.

Mud gas peaks were documented, but of not the same scale as in the Willow Oil Fields. One of the prospective targets in the Merlin-1 well however did record elevated total gas. Heavier gas components, including C5, was observed over multiple intervals. Fluorescence was observed in the drilling mud.

Whilst the results are encouraging, 88 Energy will complete the wireline program over the next week to confirm the hydrocarbon find.

Management commentary

88 Energy managing director Dave Wall briefly touched on the initial results, saying: “Whilst there is still work to do to confirm a discovery, the results to date are encouraging and we look forward to providing an additional update on the wireline program in 7 to 10 days.”

About the 88 Energy share price

Over the past 12 months, the 88 Energy share price has jumped over 100%, with year-to-date, rising above 300%.

On valuation grounds, 88 Energy commands a market capitalisation of around $425.7 million, with a mammoth 12.5 billion shares outstanding.

More reading

• Afterpay and Zip were among the most traded ASX shares last week

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.

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Shares in BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) have struggled to make headway after going ex-dividend earlier this month.

Sky-high iron ore prices saw record dividends flow through to investors, with an average dividend yield of 9.33% between the BHP share price and the other 2 ASX mining giants.

However, shares typically fall on the ex-dividend date to reflect the dividend being paid. The greater the dividend, the greater the fall.

Meanwhile, over in China…

China has made its move to tighten environmental regulations over the next few years. Earlier in March, the country’s industrial hub, Tangshan, was ordered to limit or halt production on days when a heavy pollution alert was in place.

Producers were ordered to reduce the overall emission of air pollutants by 50 per cent. There are increasing concerns that this could see the iron ore market return to a surplus. Last week, Morgan Stanley analysts warned that this move could be the beginning of major iron ore headwinds. 

Despite the announcement from Chinese authorities, the iron ore spot price has remained relatively buoyant at US$166 per tonne, slightly down from its high of US$173 per tonne in early March. 

Broker rates BHP share price, Fortescue and Rio Tinto as ‘outperform’

Macquarie Group Ltd (ASX: MQG) believes there could be stronger demand and prices for commodities, including iron ore, manganese and thermal coal. The broker upgraded its forecast for the respective materials by 18%, 22% and 17%. 

The broker notes that its preference for the BHP over Rio Tinto has narrowed. But reiterates an outperform rating with a $57 target for the BHP share price. This represents an upside of 25% at today’s prices, excluding its 6.10% dividend yield. 

Similarly, the broker’s update retained an outperform rating for Fortescue. However, it has lowered its target price from $25.50 to $23.00 on rolling forward to FY22 earnings multiples. This represents an upside of 13% at today’s prices. Fortescue also pays a market-leading dividend of 13.10%. 

Finally, Macquarie is also bullish on Rio Tinto shares but reduced its target price from $142 to $140 to reflect movements in exchange rates. If Rio Tinto meets the price target, it will return 25% from today’s prices. 

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• ASX 200 Weekly Wrap: ASX 200 gets its mojo back
• 3 ASX dividend shares with yields over 4% right now

Motley Fool contributor Kerry Sun 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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If you’re wanting to boost your portfolio with some quality growth shares, then you might want to take a look at the ones listed below.

Here’s why these quality ASX growth shares have been tipped as ones to buy right now:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share to look at is this pizza chain operator. Domino’s has been growing at a strong rate over the last decade thanks to consistent like for like sales growth and the expansion of its store network footprint.

Positively, this strong form has continued in FY 2021. Last month Domino’s released its half year results and revealed a 16.5% increase in total global food sales to $1.84 billion.

While its top line growth was impressive, its bottom line was even more so. Thanks to operating leverage, Domino’s delivered a sizeable 32.8% increase in underlying net profit after tax to $96.2 million.

But perhaps best of all, is that management is expecting an even stronger performance in the second half. In light of this, Domino’s looks set to deliver a bumper full year profit in FY 2021.

Analysts at Macquarie are confident this will be the case. As a result, they have put an outperform rating on its shares and lifted their price target to $120.20.

Kogan.com Ltd (ASX: KGN)

Another ASX growth share that is highly rated is Kogan. Like Domino’s, this ecommerce company has been in fine form during FY 2021.

For example, during the first half of FY 2021, Kogan reported a 96% increase in gross sales and a 140% jump in earnings before interest, tax, depreciation and amortisation (EBITDA).

This strong growth was driven by a surge in customer numbers, increased repeat customer rates, acquisitions, and the accelerating shift to online shopping.

One broker that believes Kogan is well-placed for growth over the long term is Credit Suisse. At the start of the month its analysts put an outperform rating and $21.08 price target on its shares.

More reading

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• Is Temple & Webster (ASX:TPW) the best e-commerce ASX share to buy right now?

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 Kogan.com ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Kogan.com ltd. 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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After a strong rally over the second half of 2020, shares in ASX workplace management consultancy Damstra Holdings Ltd (ASX: DTC) have come off the boil more recently.

Since touching a new all-time high of $2.44 in October of last year, the Damstra share price has plunged more than 50% to just $1.13 as at the time of writing. So, what has driven the massive decline?

First, a little background on Damstra

The company develops tailored workplace management solutions for corporate clients operating in specialised industries like mining, construction and energy and utilities.

Damstra partners with these organisations to develop systems and processes that will protect the safety of their employees and also help them to meet regulatory compliance standards.

It has already racked up an impressive client list, including ASX energy company AGL Energy Limited (ASX: AGL), Swiss multinational Glencore, and construction and engineering company John Holland.

Recent financials

Damstra released its first-half FY21 results to the market in February. The company reported a 30% jump in revenue versus the prior comparative period (to $13.3 million). Despite this strong top-line growth, pro forma earnings before interest, tax, depreciation and amortisation expenses (EBITDA) actually edged down 1% to $2.5 million.

The drag on earnings came from the costs associated with the acquisition of Vault Intelligence Limited, which completed in October. Vault develops workplace management technology that helps companies involved in potentially dangerous industries such as transport and logistics, construction, or mining, to monitor their employees’ safety and prevent accidents.

Despite Vault being a loss-making company, Damstra saw enough potential business synergies to acquire it.

Damstra’s target for synergies for the first 12 months after the acquisition was $4 million, which it subsequently upgraded to $5.2 million in the release of its first-half results. Damstra reported that Vault had been integrated ahead of plan, with Vault’s flagship safety platform, Solo, now part of Damstra’s product suite.

So why the decline in the Damstra share price?

It’s easy to blame the Damstra share price decline on risk-averse investors who were spooked by the company’s underwhelming first-half earnings result. However, in truth, the share price decline had begun well before the release of its first-half results.

A possible contributor to the drop in Damstra’s share price may simply be dilution from the Vault acquisition. Damstra issued almost 45 million new shares to Vault shareholders as part of the deal.

This flood of new shares put downward pressure on the company’s share price around the same time many tech growth stocks were beginning to suffer the effects of a broader sector-wide correction.

Long-term shareholders will be hoping that this might mean the dip will only be temporary. And even in just the last few weeks, the Damstra share price has shown some tentative signs of recovery, up almost 24% since bottoming out at a lowly $0.92 in early March.

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Rhys Brock owns shares of Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Damstra Holdings Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd. 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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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.

Why would someone want to invest in a company that seems to be constantly making headlines for all the wrong reasons? Between manufacturing snags, clinical trial inconsistencies, repeated hiccups with regulators on both sides of the Atlantic, and a global public clamoring for coronavirus vaccination, AstraZeneca‘s (NASDAQ: AZN) reputation is getting a beatdown, and its stock is struggling. What’s more, these issues have played out every few months over nearly a year’s time, making them much easier to integrate into a narrative of a mounting meltdown. 

As monumental as the company’s stumbles may seem, however, investors need to keep their eyes on the long term. AstraZeneca’s all-important coronavirus vaccine is reaching the public, and its reputation will eventually recover. Even with its recent troubles, its stock may start to grow sooner than one might expect. But could it double the investment of someone who bought it right now?

Vaccine setbacks abound

Let’s start with the bear case first. In my view, the bearish argument against AstraZeneca is that the parade of issues with its coronavirus vaccine point to deeper problems in the way the company operates. Specifically, its clinical and regulatory operations — both of which are critical for a company dedicated to making pharmaceuticals — appear to be the source of the most recent fumbles.

In November, management claimed that the company’s coronavirus vaccine, developed jointly with Oxford University, was 70% effective. Upon closer inspection of the results, however, observers recognized that the claim of 70% efficacy was in fact derived from two separate clinical trials with slightly different parameters.

Soon after, it became apparent that a manufacturing issue had led to some of the doses in the trial being only half as large as they were intended to be. That cast doubt on the company’s summarization of its data while also making its manufacturing and clinical operations look less than stellar. At the time, I noted that the mishaps had shaken my (previously quite strong) faith in the stock. 

More recently, one of AstraZeneca’s press releases in the U.S. used older data on vaccine efficacy than what was available. This led Dr. Anthony Fauci, head of the National Institute of Allergy and Infectious Diseases (NIAID), to say earlier this week that the issue with the data was “really what you call an unforced error because the fact is this is very likely a very good vaccine.”

To say that such criticism from one of the top regulatory leaders in a major market might make investors facepalm is a massive understatement. Once again, AstraZeneca’s communication introduced more problems for itself, except now there’s enough ammunition for naysayers to legitimately chart a trend from crisis to crisis.

Buckle up for a half-decade-long haul

As bad as all of this may seem, it’s critical to keep a long-term perspective about the company’s fortunes. Over the past five years, AstraZeneca’s total shareholder return has more than doubled. Presently, its quarterly revenues are growing by 11.2% year over year, and its earnings are expanding even faster at a rate of 223.3%.

Remember, the coronavirus vaccine is only one revenue-bearing project among countless others in the company’s portfolio. Plus, there are dozens of other medicines currently in development, each of which could catalyze further growth of the stock as they advance through clinical trials. Regardless of how successful the vaccine is commercially — and if worldwide demand is any indication, it’ll be a big hit — shareholders can still look forward to moderate growth.  

^SPX data by YCharts

That said, AstraZeneca isn’t about to explode overnight. Its market cap is simply too large for its share price to make big swings, even with the added boon of new vaccine revenue. That shouldn’t dissuade potential buyers who have a long-term approach to the market, however.

Nor is the share price the only element to consider. The company’s forward dividend yield of 2.82% is a key element of its total shareholder return, and its dividend has inched upward consistently over the last 20 years. So, buying the stock now might mean getting it at a discount, as its share price is still reeling from the effect of the recent slew of bad news.

Assuming that the vaccine revenue doesn’t change dramatically from management’s expectations and there are no major catastrophes in store (knock on wood), it’s reasonable that AstraZeneca could once again double between now and 2026 or 2027. Don’t wait too long to decide, though: Once the vaccine rollout gets back on track, the stumbles will recede from the market’s memory quite quickly, and the stock might not be much of a bargain thereafter.

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

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

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The Cann Group Ltd (ASX: CAN) share price was out of form on Monday.

The cannabis company’s shares fell 3.5% to 55 cents.

This latest decline means the Cann share price is now down a disappointing 56% from its 52-week high.

Why is the Cann share price on the slide today?

The Cann share price came under pressure despite the release of two announcements.

This first, covered in more detail here, reveals that the company has signed a partnership with Emyria Ltd (ASX: EMD).

That partnership will see the two parties work together to accelerate the registration of a unique, low-dose, cannabidiol (CBD) only capsule with Australia’s Therapeutic Goods Administration (TGA).

What was the second announcement?

This afternoon Cann also provided the market with an update on the cyberattack it experienced in February.

In case you missed it, in February the company advised that it had been the victim of a complex and sophisticated cyber fraud perpetrated against it and its overseas contractor.

This saw Cann make a payment of EUR2.25 million (~$3.5 million) to an overseas contractor, only for it to end up with an unknown third party.

According to today’s announcement, Cann has commenced a civil proceeding in the High Court of the Hong Kong Special Administrative Region against a third-party defendant, Er Ya Trade, seeking recovery of EUR2.25 million.

The company also advised that an injunction has now been granted by the Court in favour of Cann to freeze certain assets of the defendant and to compel disclosure of ancillary information relating to assets held by it.

What next?

The release explains that the matter will now go through the Court process. Based on current information, Cann has been advised that this is likely to take between four and six months.

However, management has warned that there is no guarantee that any amount will be awarded to Cann or funds ultimately recovered from the Defendant through this process.

Cann intends to provide further updates as material events in the proceeding arise.

More reading

• Cann (ASX:CAN) share price slides despite collaboration news
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Imagion Biosystems Ltd (ASX: IBX) share price has rocketed 1,166% over the past 12 months due to a series of promising projects around cancer detection.

The company’s bio is truly a mouthful: its principal business activities consist of nanotechnology, biotechnology, cancer diagnostics, and – the clincher — superparamagnetic relaxometry. 

What investors should know is that it develops medical devices focused around cancer screening technology.

Imagion’s Magsense cancer screening technology

One of these tech projects, called Magsense, is a diagnostic imaging tool that can potentially increase the accuracy of magnetic resonance imaging scans (MRIs) and PMSA-PET scans. For the record, PMSA-PET scans are prostate cancer scans, which work by using radioactive dye to light up areas of the body.

What’s more, the company’s long term goal is to fully develop a cancer screening technology that’s not only more accurate, but entirely radiation free. Scientific Advisory Board member Professor Lisa Horvarth explained Imagion’s technology in slightly more detail.

MRI and PSMA-PET have limits of detection, so small cancer foci in lymph nodes may not be detected,” she said. “Imagion’s new imaging technology would allow precision mapping of the lymph nodes, identifying smaller foci of cancer that current imaging modalities are unable to identify. This would guide the treatment of the lymph nodes either by surgery or radiotherapy.

What’s happening to Imagion’s share price?

The Imagion share price has surged 1,166.67% over the past 12 months, from 0.012 cents per share to over 15 cents today. However, it’s down 15% this month and 5% this week.

It’s down nearly 2% today, despite a positive report to its shareholders regarding its expansion into breast cancer screening trials. The effects of COVID-19 on the healthcare sector are still hard to shake off: cancer diagnostic procedures dropped by 30% throughout the pandemic and still haven’t recovered.

It revealed this month that the CSIRO have granted it $50,000 for a prostate cancer screening project related to its Magsense technology.

While the executive chair of Imagion Biosystems, Bob Proulx, was thankful for the government support.

“This collaboration with Monash, assisted by funding from CSIRO, helps jump start our prostate cancer project by leveraging the expertise at Monash University and provides a key opportunity to advance our MagSense technology for another important cancer indication,” Proulx said.

“We’re grateful for the support from the Australian Government through the Entrepreneurs’ Programme and their recognition of the medical need for improved methods of prostate cancer detection.”

Imagion “excited for what lies ahead”

It’s worth noting that Imagion is still small cap and Magsense is still in its relative infancy. Its current market capitalisation is $157 million, ranking it 66th in the healthcare sector and 790th on the ASX All Ordinaries Index (ASX: XAO)

But its team clearly believe they’re making progress.

“After much diligence and hard work, we are delighted to have finished the year with our first inhuman study established and open for enrolment,” Proulx said in Imagion’s 2020 Annual Report, released last month.

“We are excited for what lies ahead in 2021, particularly as the MagSense HER2 breast cancer phase one study progresses and we explore further development areas including manufacturing scale-up and preparing for a larger pivotal study.”

More reading

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Motley Fool contributor Lucas Radbourne-Pugh 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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Some investors may have spotted what looks like an incredibly lucrative ASX share this morning.

Several sources, including the ASX itself, are today telling investors that the Clean TeQ Holdings Limited (ASX: CLQ) share price is up an incredible 927%. It’s not often we see an ASX share price move triple digits in one day, let alone by close to 1,000%

So did Clean TeQ really make its investors 927% richer today? The answer is not as simple as it seems…

So yes, on the surface, it looks as though Clean TeQ shares are up 927%. That’s because when we last saw the Clean TeQ share price on Friday, it was sitting at 26 cents a share. But this morning, it had seemingly had one of the greatest weekends of all time when it opened at $2.65 a share.

At the time of writing, Clean TeQ shares are trading at $2.67.

A ‘reverse split’ for Clean TeQ

If you are a shareholder in Clean TeQ, I hope I’ve caught you before you’ve found a way to the nearest Lamborghini dealer because I’m afraid you’re not suddenly rich.

The ‘rise’ in the Clean TeQ share price has nothing to do with the company getting any bigger. It’s actually a result of Clean TeQ executing what’s known as a share consolidation, which is sometimes called a ‘reverse split’.

Put simply, the company has reduced its share count by a factor of 10, making each share 10 times more valuable. That explains why Clean TeQ has seemingly 10Xed over the weekend. But for every 10 CLQ shares a shareholder might have owned on Friday, they now own 1.

It’s the opposite process to what companies like Pushpay Holding Ltd (ASX: PPH), Apple Inc (NASDAQ: AAPL) and Tesla Inc (NASDAQ: TSLA) have done in recent months. Unfortunately for shareholders, it does not mean any real change in either the company’s market capitalisation, valuation, or any individual shareholders’ wealth.

Clean TeQ did tell us this was happening last Wednesday. It’s part of the company’s plan to rename itself Sunrise Energy Metals Limited (SRL) come 9 April 2021.

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Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple and PUSHPAY FPO NZX. 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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