All of us would like to know what the future holds. Unfortunately, predicting the future is not something most investors are very good at, at least in the short term. The share market is supposed to be a rational market mechanism. And it does function that way, most of the time. But, as the old saying goes, ‘markets can remain irrational longer than you can remain solvent’. Hence why making short-term bets usually doesn’t work out that well. But there are some investors out there that are usually worth listening to when it comes to what the economy and share market have in store all the same. Warren Buffett is one, Ray Dalio is another. And Jamie Dimon is a third.

Mr Dimon is head of JPMorgan Chase & Co (NYSE: JPM), one of the largest banks in the United States, and the world for that matter. Mr Dimon has amassed a reputation as a stellar leader, CEO and investor over the years. And that’s why his latest letter to the shareholders of JPMorgan is well worth a read.

Dimon: US economy looks set to boom

In this letter, Mr Dimon lays out why he thinks the US economy is set for some good days ahead. Here’s some of what he had to say:

I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the U.S. economy will likely boom. This boom could easily run into 2023 because all the spending could extend well into 2023.

A booming US economy will of course be great news for Australia and the rest of the global economy. As the largest economy in the world, what happens in the US tends to spill over into other markets.

Inflation and rates

But if you think a booming US economy might be good news for ASX shares, Mr Dimon threw in a caveat:

Conversely, in this boom scenario, it’s hard to justify the price of U.S. debt… the increase in inflation may not be temporary and may not be slow, forcing the Fed to raise rates sooner and faster than people expect…. Also in this case, the cost of interest on U.S. debt could go up fairly dramatically making things a little worse.

So he’s telling investors that all will go well unless the US Federal Reserve is forced to raise interest rates earlier and more rapidly than is currently expected. Not only will rising rates have the potential to derail an economic boom, but they will also almost certainly result in lower US stock prices. And if US rates rise, you can probably bet our own Reserve Bank of Australia (RBA) will have to follow suit.

However, Mr Dimon argues that that is not necessarily a given. Here’s his outlook for US shares:

While equity valuations are quite high (by almost all measures, except against interest rates), historically, a multi-year booming economy could justify their current price. Equity markets look ahead, and they may very well be pricing in not only a booming economy but also the technical factor that lots of the excess liquidity will find its way into stocks.

Whatever happens, it certainly looks like we ASX investors are in for an interesting couple of years ahead.

More reading

• The Aristocrat (ASX:ALL) share price is back near all-time highs
• Why the REA (ASX:REA) share price is surging in April
• Saxo reveals its Australian clients’ top 5 most popular shares
• Why Aurelia Metals, Brickworks, Greenland Minerals, & Resolute are tumbling lower
• Here’s why the QEM (ASX:QEM) share price is climbing today

Motley Fool contributor Sebastian Bowen owns shares of JPMorgan Chase. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Aristocrat Leisure Limited (ASX: ALL) share price is trading near all-time highs. After getting smashed last year, shares in the poker machine business have made a miraculous recovery.

The Aristocrat share price hit a low of $14.81 last March amid the COVID-19 market rout. Since then, the company’s share price has more than doubled and is currently trading near its all-time high of $38.23.

Let’s look at what’s been happening with the Aristocrat share price.

Recovery pushes Aristocrat share price

At the company’s annual general meeting in February, Aristocrat painted an optimistic outlook for the company. Aristocrat highlighted that gaming looks to resurface from the COVID-19 pandemic in excellent shape. As a result, the company’s management predicted that the next decade for Aristocrat would be better than the prior decade.

Aristocrat added that the company’s land-based (non-digital) business has been recovering above original expectations.

More than 90% of machines were active in Australia, while 92% of venues were open in North America. In addition, Aristocrat noted that the company was placed within the top 5 mobile gaming operators in the western world.

What is the outlook for Aristocrat?

For FY21, Aristocrat plans to continue growth in gaming operations. The company’s growth is measured by the number of machines in operation and game performance. Aristocrat has grown its “floor share” in gaming venues and is tipping further digital bookings growth.

Aristocrat assured investors that the company’s foray into digital gaming would be permanent rather than temporary. To further its digital business growth, Aristocrat pledged it would spend 25% to 28% of digital revenue on user acquisition.

The company also noted that despite the impact of COVID-19, Aristocrat strengthened its liquidity and balance sheet. Aristocrat highlighted $2 billion in liquidity as of 30 September 2020. As a result, the company continues to monitor mergers and acquisitions as an option to accelerate growth.

Broker note

Recently, analysts at broker Goldman Sachs released a bullish outlook on the Aristocrat share price. Analysts noted that Aristocrat’s recovery across various regions was tracking ahead of its own internal expectations.

The broker noted that Aristocrat continued to increase its land-based business. In addition, the company’s digital business continued to improve. As a result, the broker reaffirmed its buy rating on Aristocrat with a share price target of $34.80.

At the time of writing, the Aristocrat share price has exceeded that rating, trading up nearly 2% at $35.56.

More reading

• EML Payments (ASX:EML) and these ASX shares just hit new highs
• 2 quality ASX shares to buy this week
• Leading broker names its best ASX share ideas for April
• Top brokers name 3 ASX shares to buy today
• Why Aristocrat Leisure, Opthea, PointsBet, & Spirit are storming higher:

Motley Fool contributor Nikhil Gangaram 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 REA Group Ltd (ASX: REA) share price has surged 8.70% in April to $153.72 at the time of writing. This follows its shares falling almost 20% between early February and mid-March to a 4-month low of $131.00. 

Why is the REA share price pushing higher? 

The Australian residential property market is booming 

Whether it’s residential property listings, housing prices, or clearance rates — the property market is on fire by every metric. 

A booming property market will likely prop up the key performance metrics for the REA group. This includes residential listings and website and app visits. An improvement in these key metrics would ultimately trickle down to higher revenues and profits. 

An article from Domain Holdings Australia Ltd (ASX: DHG) highlighted a week in March where more than 1,000 properties were up for auction in both Sydney and Melbourne. The biggest auction day for both cities in three years. Both cities exceeded expectations with a preliminary clearance rate of 88 per cent and 81 per cent respectively. 

CoreLogic’s monthly home value index for Sydney, Melbourne, Brisbane, Adelaide, and Perth rose 2.83% in March, the biggest monthly increase since October 1988. 

While buyer demand and house prices might be surging, listing volumes have been relatively flat. CoreLogic’s March highlights note that “new listings volumes are now outpacing 2020 levels across 6 of the 8 capital city markets, however total stock on market is only higher across Melbourne”. Nonetheless, CoreLogic’s commentary still highlights the year-on-year improvement listing figures are experiencing, which is good news for the REA business. 

REA eyes mortgage broking 

REA recently made the move to acquire 100% of Mortgage Choice Limited (ASX: MOC) shares for a $1.95 cash per share offer.

There is a general consensus across big brokers such as Credit Suisse, Ord Minnett and UBS. Ultimately, the acquisition will be immediately EPS accretive with potential upside in both revenues and cost benefits. However, its contributions will be small relative to the size of REA. Some benefits that are realised as a result of owning a mortgage broking business include negotiating better rates with lenders and generating leads from REA to Mortgage Choice. 

More reading

• 3 five-star ASX shares to buy in April
• What brokers think of REA (ASX:REA) share price following acquisition
• 3 of the best ASX shares to buy in April
• Why AGL, Digital Wine, REA Group, & Xero shares are charging higher
• ASX 200 dips lower, Webjet drops, REA bids for Mortgage Choice

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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Australian investors are known to have a penchant for investing in ASX shares.

Part of that is because we’re familiar with them. Part of that is because we like to support the home team. And part of that is because investing internationally used to be more expensive and more complicated.

But all of that is changing.

According to Saxo Bank, only 2 of the most popular shares among its Aussie clients in the first quarter of 2021 were ASX shares. The other 3 were listed in the United States.

What were the 5 most popular shares for Saxo’s Aussie clients?

Earlier today Saxo revealed the 5 most popular shares for its Australian client base were…drum roll please…

1. Tesla Inc (NASDAQ: TSLA)
2. Westpac Banking Corp (ASX: WBC)
3. Zip Co Ltd (ASX: Z1P)
4. GameStop Corp (NYSE: GME)
5. AMC Entertainment Holdings Inc (NYSE: AMC)

Commenting on investor interest, Saxo Market’s Head of Equity, Peter Garnry said:

Global equities continued the upward momentum in the first quarter amid increased volatility, which was especially evident in several the heavily shorted stocks in the beginning of the year such as GameStop and AMC. Many of these names continue to attract retail interest although some of the hype seems to have faded.

Garnry urged investors to proceed with extreme care when trading in these types of shares with “unprecedented high volatility”.

Tesla takes the pole position

Pointing to Tesla, the most popular share among Saxo’s Aussie clients in the first quarter of this year, Garnry said:

Tesla remains a popular stock with Saxo Bank’s clients and the increasing competition is somewhat at odds with the current valuation of Tesla. But the company continues to surprise to the upside with Q1 delivery numbers at 170,000 vehicles, which was above analysts’ estimates… However, Tesla’s free cash flow generation remains stretched given the rise in competition which will be the long-term theme for investors to watch.

Saxo’s recommendations

Looking at the list of top 5 most popular shares for its Australian clients, it would appear few are taking heed of Saxo’s own advice, instead chasing after the shares making big news for their big gains.

However, Garnry cautions:

Our view remains that during the incoming reflationary environment investors should increase their exposure to the commodity sector and high-quality companies with low debt leverage. The rising interest rates are likely to create a downward adjustment of equity valuations in the most speculative growth segments such as bubble stocks, e-commerce, gaming, green transformation, and next-generation medicine stocks.

He adds that the investment bank believes shares in cyclical sectors will outperform as the global economy recovers and inflation makes itself known.

More reading

• ASX 200 up 1%: Big four banks and miners take ASX 200 above 7,000 points
• Tesla’s stock is way overblown and only worth $150, analyst says
• How Westpac (ASX:WBC) is set to cash in on Bitcoin
• Westpac (ASX:WBC) share price on watch after ASIC launches civil proceedings
• 5 things to watch on the ASX 200 on Thursday

Bernd Struben 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 Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is storming higher and on course to record another solid gain. At the time of writing, the benchmark index is up 0.9% to 6,988 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Aurelia Metals Ltd (ASX: AMI)

The Aurelia Metals share price is down 2.5% to 40 cents. This is despite the release of a positive announcement out of the gold-focused mining and exploration company this morning. That announcement advises that following scoping studies, the company has decided to proceed with the definitive feasibility study at its Federation project. Management notes that Federation represents one of the most significant discoveries in the Cobar Basin in recent decades.

Brickworks Limited (ASX: BKW)

The Brickworks share price has fallen 2.5% to $20.49 despite there being no news out of the building products company. This decline may have been driven by profit taking after some strong gains in recent weeks. In fact, on Wednesday the Brickworks share price hit a record high.

Greenland Minerals Ltd (ASX: GGG)

The Greenland Minerals share price crashed 45% lower to 8.8 cents before being placed into a trading halt. Investors were selling the Greenland-based mineral exploration company’s shares following an unfavourable result in the country’s election. Overnight, Greenland’s left-wing environmentalist party won the election and vowed to block the development of the company’s Kvanefjeld rare earth project.

Resolute Mining Limited (ASX: RSG)

The Resolute share price has dropped almost 4% to 46.2 cents. Investors continue to sell this embattled gold miner’s shares following a terrible few months. A disappointing full year result, weak guidance, and the termination of its mine licence by the Ghanaian government are all weighing heavily on the company’s shares.

More reading

• Why the Greenland Minerals (ASX:GGG) share price is crashing 45% lower today
• ASX 200 up 1%: Big four banks and miners take ASX 200 above 7,000 points
• Bullish ASX 200 shares breaking into 52-week highs 
• 2 ASX 200 shares to buy for growth
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. 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 QEM Ltd (ASX: QEM) share price is in the green during early-afternoon trade following a collaboration with DNV Australia. At the time of writing, the liquid fuels producer’s shares are swapping hands for 19 cents.

Independent expert in risk management and assurance, DNV operates in more than 100 countries. The company specialises in advisory, monitoring, verification, and certification services across the entire energy value chain.

What did QEM announce?

Investors appear excited about the company’s prospects, pushing the QEM share price higher.

In its announcement, QEM advised that it has engaged DNV to undertake a pre-feasibility study into power generation from solar and wind farms. This forms part of the company’s broader assessment in progressing studies into producing green hydrogen at its Julia Creek project.

The pre-feasibility study will cover solar farm resource mapping and modelling, as well as a preliminary solar photovoltaic (solar PV) system design. Furthermore, DNV will develop a preliminary wind turbine layout to gain a better understanding of wind farm resource mapping and modelling.

The study will look at how well both solar and wind farms work together in creating potential renewable energy sources. This is expected to feed into the company’s electrolyser to produce hydrogen.

The pre-feasibility study is due to be finalised before the end of the second quarter. DNV will then move on to undertaking more definitive wind resource measurements and solar resource monitoring during the third quarter.

Management commentary

QEM managing director, Gavin Loyden touched on the company’s green hydrogen strategy, saying:

Engaging DNV demonstrates that we are swiftly laying the foundations for green hydrogen opportunities at Julia Creek.

The Julia Creek site receives significant sun exposure and DNV has already noted that the site is substantially flat, which bodes well for installation of wind power generation.

Importantly, advancing our green hydrogen strategy will enhance the development of our flagship Julia Creek vanadium and oil shale project.

About the share price

The QEM share price has accelerated over 160% in the last 12 months, with most of the gains coming from year-to-date. The company’s shares reached an all-time high of 34 cents late March before profit-taking took place.

More reading

• The QEM (ASX:QEM) share price is up 15% today, 55% in a week
• Why the QEM (ASX:QEM) share price is shooting 16% higher today
• The QEM (ASX:QEM) share price has rocketed 119% today. Here’s why

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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The Magnetite Mines Ltd (ASX: MGT) share price has had a roaring 2021 so far. It’s currently up 330% year to date.

At the time of writing, the Magnetite Mines share price is up 2.38% from yesterday’s closing price, trading for 4.3 cents.

So, what’s been driving the Magnetite Mines share price? Let’s take a look at its recent time on the ASX.

The build-up to the Magnetite Mines share price’s big bang

Magnetite’s share price rise has come after much adjusting by the company, and a new foray into iron ore mining.

The company purchased its Razorback High Grade Iron Ore Project in 2018, but in June last year it signed a farm-in agreement with Braemar Mining Developments. In return for funding the project, as well as committing to future funding, Braemar could receive up to a 49.9% interest in Razorback.  

This led to the Magnetite Mines closing share price closing above 1 cent in August, the first time it had done so since 2018.

Then, in September, Magnetite Mines began a renounceable rights issue for its shareholders.

A renounceable rights issue is when a company offers its shareholders the option to buy new shares, normally for a discounted price.

In this instance, the shares were offered to share holders at 1 cent apiece. Magnetite Mines also offered a bonus option free with every 2 shares purchased. The bonus option had an exercise price of 5 cents.

The oversubscribed issue ultimately raised $5.95 million for the company.

The company’s chair, Peter Schubert, said in its first quarter report that the activities were pivotal for the company.

With the support of new and existing shareholders, we have substantially increased our market capitalisation, capital position, market awareness for the Razorback Iron Project and importantly our plans for its development. The successful scoping study last year set the Company on a path to becoming an iron ore producer. We are now advancing along that path by undertaking a well thought out study that will deliver an optimised scope for project development and confirm the positive economics of the staged development pathway. We are assembling an experienced and talented team of experts to ensure we can deliver efficient and effective results in a timely fashion.

Finally, in October Magnetite Mines announced revenue from a 2007 royalty agreement between it and Silverlake Resources Limited (ASX: SLR) is expected to commence in the second half of this year.  

The agreement is for the Rothsay gold operation, owned by Silver Lake. Under the agreement, Magnetite Mines is entitled to a royalty of $10 per ounce of gold extracted from Rothsay, beginning once Silver Lake has sold 10,000 ounces. The royalty will end after the total payments reach $595,000.

Magnetite Mines share price snapshot

2021 has seen the Magnetite Mines share price rise by 330%, despite little news out of the company since December. In the past 12 months, Magnetite shares are up a whopping 2,100%

On current prices, the company has a market capitalisation of around $120 million, with approximately 2.8 billion shares outstanding.

More reading

• ASX 200 dips, Sydney Airport falls, AGL rises
• Why Corporate Travel Management, Silver Lake, Volpara, & Vulcan are pushing higher
• ASX 200 down 0.15%: Westpac asset sale, Webjet update, gold miners jump
• ASX 200 Weekly Wrap: Calm restored to the ASX 200
• These were the best performing ASX 200 shares last week

Motley Fool contributor Brooke Cooper 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 ASX tech sector has become very famous over the past few years. Tech winners like Xero Limited (ASX: XRO) and Afterpay Ltd (ASX: APT) have prompted many an investor to try and find the ‘next Xero’ or the ‘next Afterpay’. Unfortunately, unlike some other markets, the ASX tech sector holds a relatively small slice of the Australian share market.

Thus, if you are really bullish on tech, it might be prudent to look beyond our shores to bolster your portfolio.

That’s where this ASX exchange-traded fund (ETF) comes in.

The BetaShares Asia Technology Tigers ETF (ASX: ASIA) is an ETF dedicated to tracking the best tech companies in Asia, outside of Japan. Asia is the most populous continent on the planet. Despite this, it’s also an area where the big US tech companies have a far more limited reach and scope than in advanced economies like the US and Australia. Alphabet Inc‘s (NASDAQ: GOOG)(NASDAQ: GOOGL) Google is essentially banned in China, after all. As is Netflix Inc (NASDAQ: NFLX) and Facebook Inc‘s (NASDAQ: FB) products.

Asian tech tigers roar

That’s where the usefulness of an Asian tech company like Baidu might come in handy. It’s often described as the ‘Google of China’. Or iQiYi, the ‘Netflix of China’. Not to mention the pervasive dominance of Chinese ecommerce companies like Tencent Holdings, JD.com or Alibaba Group Holding Ltd. These companies dominate both the Chinese e-commerce market, as well as China’s social media scene.

All of these tech companies are major holdings of the BetaShares Asia Technology Tigers ETF. Other holding include the global electronics titan Samsung Electronics Co. As well as the giant computer chip manufacturer Taiwan Semiconductor Manufacturing Co Ltd.

But China is the country that dominates this ETF with 54% of the fund’s holdings. Taiwan comes in second with 22%, with South Korea, India, and Hong Kong rounding out the list with 18.3%, 4.8%, and 0.2% respectively.

But turning to performance, and we can really see the value of investing in the Asian tech sector. The index that the ASIA ETF tracks has returned an average of 26.3% over the past 3 years and 29% per annum over the 5 years. The ASIA ETF itself has returned 36.5% per annum since its inception in 2018. As well as a whopping 70.34% over the past 12 months alone. It charges a management fee of 0.67% per year.

More reading

• Will a retreating Reddit army trample the IOUpay (ASX:IOU) share price?
• This broker thinks the Afterpay (ASX:APT) share price is a buy in April
• ASX 200 up 1%: Big four banks and miners take ASX 200 above 7,000 points
• Brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Thursday

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Baidu, Facebook, JD.com, Netflix, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Alphabet (A shares), Facebook, JD.com, and Netflix. 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 IOUpay Ltd (ASX: IOU) share price, up 1.28% today, trading at 40 cents per share. Despite the intraday gain, shares in the ASX fintech company are now down 44% from the 15 February highs when it closed at 70 cents per share.

Still, even after that retreat, IOUpay is trading at more than 5-year highs. Shares remain up 98% so far in 2021 and up an eye-popping 3,850% over the past 12 months. Over that same period, the All Ordinaries Index (ASX: XAO) is up 38%.

And, as Bloomberg notes, despite the recent share price retreat, “IOUpay remains Asia’s top-performing interactive media and services stock over the past year”.

What’s driving ASX investor interest in IOUpay?

The IOUpay share price has been buoyed by a number of factors over the past months.

The ASX fintech company capitalised on the massive investor interest in buy now, pay later (BNPL) shares, like Afterpay Ltd (ASX: APT).

The IOUpay share price surged in February after the company entered into a merchant referral agreement with EasyStore Commerce. The agreement allows EasyStore’s clients to use IOUpay’s BNPL payment services.

Retail traders communicating and coordinating their activities on Reddit have also been widely credited with IOUpay’s meteoric rise. That’s the same group of traders that sent the GameStop Corp (NYSE: GME) share price to the moon, burning a number of institutional short sellers in the process.

As Bloomberg reports, IOUpay’s huge daily share moves began “after it was touted by investors on Reddit”, adding that the ASX fintech share “has been the subject of several discussion threads on Reddit”.

Will a retreating Reddit army sink the IOUpay share price?

As the world begins to recover from the viral lockdowns, the hoard of retail traders appears to be turning their attention, and their money, back towards the pursuits they’ve been denied this past year. Like travelling, dining out, and returning to work in the office.

And this retreat could spell bad news for high flying meme stocks.

According to Carl Capolingua, an analyst at online brokerage ThinkMarkets Australia Ltd:

We may see the price subdued for a long period of time as retail investors get bored waiting and sell out to find something more exciting. The question will be if they can get traction in the Asian markets they’re targeting before the bigger players come in.

Like so many movements impacting global markets, the Reddit army was born in the United States and has since gone worldwide.

What the longer-term implications are for the IOUpay share price remains to be seen.

More reading

• This broker thinks the Afterpay (ASX:APT) share price is a buy in April
• ASX 200 up 1%: Big four banks and miners take ASX 200 above 7,000 points
• Brokers name 3 ASX shares to buy today
• Tesla and GameStop were some of the most popular US shares last week
• Why the Bubs (ASX:BUB) share price is up 5% today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Buying fundamentally strong ASX shares that have surged in recent weeks or months can be challenging. Here are two ASX shares that brokers think can keep going higher. 

1. Calix Ltd (ASX: CXL) 

The Calix share price has surged some ~170% in the past 6-months. In particular, this movement is likely driven by the increased investor appetite for green solutions. Calix’s core technology is used to reduce emissions and more environmentally friendly solutions for a broad range of sectors including batteries, crop protection, aquaculture, and also C02 mitigation. 

Canaccord Genuity has called out ESG and decarbonisation as “multi-decade structural thematics in their infancy and underpin demand for CXL’s technology across multiple industries”. 

On 1 April, the broker rated the company as a buy and increased its target price from $2.50 to $2.60. Furthermore, its report believes that CY21 is shaping up to be a transformational year for the business. Furthermore, pointing to multiple industries as growth drivers. 

Water treatment and aquaculture is currently a key revenue segment for Calix. Canaccord points to strong momentum in its US-based water treatment business. In addition to a potential European acquisition to expand revenue and gross margins. 

Calix’s C02 mitigation vertical is currently targeting cement and lime industries with a world-first ambition to produce zero-emissions lime. While this segment is not yet revenue-generating, the broker believes the foundations of commercialisation is beginning to form with the progression of its LEILAC-2 project and an agreement with Adbri Ltd (ASX: ABC). 

Other verticals such as batteries, sustainable processing, and biotech are in their early days. However, the broker sees strong early results which are supportive of accelerating timelines. 

Calix shares are currently fetching $2.26, not far off its all-time record high of $2.47. 

2. Lark Distilling Co Ltd (ASX: LRK) 

Lark is a Tasmanian-based producer of craft whisky and gin. Its shares are up more than 200% in the past 12-months and 72% higher year-to-date. 

Its strong share price performance has been driven by solid earnings momentum, with its latest half-year accounts showing a 91% increase in revenue to $7.29 million and turning a profit of $542,436. 

What’s interesting about Lark is its 817,549 litres of whisky set for maturing over the next six years. The liquidation value of its maturing whisky is approximately $56.69 million today. Additionally, the estimated net sales value at maturity is approximately $113.6 million. To add some perspective, Lark has a market capitalisation of just $156 million. 

Moelis Australia is bullish on spirit consumption trends, the company’s increasing ecommerce penetration, and production volume uplift. It initiated coverage in late March with a buy rating and $2.65 target price. The Lark share price is currently fetching $2.42 and within ~5% of its all-time record highs. 

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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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