• The Cirralto (ASX:CRO) share price is hitting 52-week highs today

    Rocket shooting out of investors outstretched hands to signify fast growth of ASX tech share

    The Cirralto Ltd (ASX: CRO) share price is setting 52-week highs today, even though there are no fresh announcements from the company. There appears to be a huge inflow of interest, demonstrated by the volume traded today. Currently, the number of shares traded is sitting around 198 million, which is nearly sixfold the monthly average.

    With no news out from the company, let’s take a look at recent announcements and the space that Cirralto operates in.

    Buy now, pay later boom!

    You guessed it! Cirralto is another high flying buy now, pay later (BNPL) provider. Over the last couple of days, a number of ASX-listed BNPL shares have received an influx in interest. Whether the market has a new-found spur in optimism for the sector or just pure speculation, we have now seen the following shares race to new heights:

    • IOUpay Ltd (ASX: IOU) – a recent BNPL entrant to Malaysia, up 259% in the last month
    • Fatfish Group Ltd (ASX: FFG) – a tech investment firm that holds a stake in a recent Singaporean-based BNPL entrant, up 156% in the last month.
    • Zip Co Ltd (ASX: Z1P) – Afterpay competitor with global operations, up 126% in the last month.

    Cirralto offers digital payment services for business to business (B2B) transactions. One of these offerings is an instalment payment service that is essentially a BNPL between businesses, rather than for consumers. The product at the forefront of Cirralto’s campaign is its ‘Spenda’ software solution – integrated with Xero, Myob, Quickbooks, WooCommerce, and more.

    Recent Cirralto business activities

    The company provided its quarterly activities report for the December ending quarter on 28 January. Cirralto reported quarterly revenue of $329,943 – an increase of 84% from the prior period.

    Additionally, Cirralto highlighted agreements made in December with global payment providers Fiserv, Visa, and Mastercard.

    As a result of the low cash flows from operating activities, Cirralto also tapped the market for a capital raise of $2.8 million during the period, bringing its cash balance to $3.95 million as of 31 December 2020.

    Cirralto share price snapshot

    The Cirralto share price at the time of writing is up 29.8%, trading at 8.7 cents a share. In the last 12 months, the share price has appreciated by 1800%. For comparison, the biggest ASX-listed BNPL player, Afterpay Ltd (ASX: APT) increased 284% during the same time frame.

    Cirralto’s market capitalisation is now $115 million, making it a small-cap stock.

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    Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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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  • Why is the Reckon (ASX:RKN) share price on the rise today?

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    The Reckon Limited (ASX: RKN) share price is marching higher today, up 4.19% in afternoon trading.

    The accounting software provider’s shares are rising following the release of the company’s results for the first half of the 2021 financial year (H1 FY21).

    What did Reckon report?

    In this morning’s ASX release, Reckon reported net profit after taxes (NPAT) of $9.7 million. That’s an increase of 19.8% from H1 FY20.

    Earnings before income, tax, depreciation and amortisation (EBITDA) came in at $30.6 million, an increase of 6.6% from the previous corresponding period. Revenue of $75.6 million increased by 0.3%. The company reported its recurring revenue stream is strong, with 85% of revenue now subscription based.

    Reckon reduced its debt over the half year to $31.8 million, down $5.8 million, or 15%.

    The accounting software provider will pay a 2 US cent final dividend, providing a 6% dividend yield.

    Commenting on the results, Reckon’s CEO Sam Allert said:

    The strong execution of our plan during 2020, which includes a continued focus on investing in cloud-based product development to satisfy client demand, means Reckon is increasingly well placed for growth.

    Despite the uncertainty created by the pandemic, Reckon performed well across key financial metrics and in particular continued its positive cloud-based user growth trajectory…

    Expanding on the company’s growth outlook, Allert added:

    We have a clear growth plan for 2021, which includes more mobile apps for our small business client base, and cloud modules for our APS and Elite Accountant client base, whilst leveraging the power of Reckon One to enhance the back office and payroll function for accounting firms and small businesses alike. This strategy compliments our US cloud Practice Management roadmap and provides strong synergies and cross sell opportunities across our global business.

    Reckon share price snapshot

    It’s been a good 12 months for Reckon shareholders, with shares up 29%. And that’s despite the plunge in the Reckon share price during the wider COVID-fuelled market selloff last year, which saw shares tumble more than 47% into late March.

    Year-to-date the Reckon share price is up 13%. That compares to a gain of 3% on the All Ordinaries Index (ASX: XAO).

    Where to invest $1,000 right now

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

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  • Here’s why the Cann Group (ASX:CAN) share price is in a trading halt

    A frustrated businesswoman tries to figure out the numbers, indicating poor earnings results or share price movementon the ASX

    Eagle-eyed followers of ASX cannabis shares might have noticed something strange about the Cann Group Ltd (ASX: CAN) share price this morning. It wasn’t going anywhere.

    Cann shares closed at 78 cents yesterday after rising more than 36% at one point last week. That comes after the Cann Group share price rose more than 190% between 20 November and 10 February. But 78 cents is where it will stay, at least for now. That’s right in the middle of the company’s 52-week range (29 cents-$1.26).

    So what’s going on here?

    Well, this morning Cann released an ASX announcement that told investors the company was seeking a trading halt to its shares. The ASX has obliged, meaning the shares won’t be available for trading again until at least Thursday 18 February.

    Trading halt for Cann Group

    Why the trading halt? Well, it’s a little embarrassing for Cann. The company has told investors that:

    The trading halt is requested pending the application to the Federal Court by the company seeking orders in relation to the company’s inadvertent failure to lodge a cleansing notice under section 708A(5)(e) of the Corporations Act within the prescribed 5 day period after the issue of 306,846 shares in the company on 28 January 2021.

    So someone stuffed up, evidently. The shares in question relate to the ASX notice the company posted on 28 January. This notice told the market that 306,846 options (with the code CANAF) expiring 31 March 2022 (with an exercise price of $0.46) would be converted into shares. Today’s notice implies that Cann Group did not follow the correct procedure for lodging the proper paperwork with the ASX. It’s unclear what will happen now, but investors might have to wait until Thursday for any more information.

    Today’s trading halt comes just one day after Cann announced the acquisition of the European company Harvest One Cannabis‘ Satipharm business for C$4 million in Cann shares. Satipharm has an exclusive license to develop and market the proprietary Gelpell delivery system for cannabinoids. Satipharm claims that this delivery system offers improved stability and bioavailability of cannabinoids compared to other formulations.

    That announcement sent the Cann Group share price up almost 4% yesterday at market open before the shares cooled off over the day. Since that sale is to be funded by new Cann shares as well, investors might be hoping the company doesn’t make the same mistake twice!

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    Motley Fool contributor Sebastian Bowen 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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  • NRW (ASX:NWH) share price jumps on acquisition update

    takeover M&A NRW takeover

    The NRW Holdings Limited (ASX: NWH) share price is outperforming today as the engineering contractor successfully acquired Primero Group Ltd (ASX: PGX).

    The NRW share price surged 3.4% to $2.78 in after lunch trade when the S&P/ASX 200 Index (Index:^AXJO) gained a more modest 0.5%.

    Even NRW’s peers are having trouble keeping up. The Downer EDI Limited (ASX: DOW) share price gained 1.5% to $5.80 while the Monadelphous Group Limited (ASX: MND) fell 0.7% to $12 at the time of writing.

    Compulsory acquisition lifts NRW share price

    NRW announced that it now controls 98.43% of shares in the takeover target. This is well above the 90% threshold that will allow a bidder to compulsorily acquire a target.

    Primero shareholders who haven’t pledged their shares to NRW have until 19 February to do so if they want to be paid quicker.

    Those who don’t will still get the same offer, but will have to wait longer for their payout if they went through the compulsory acquisition process.

    Time value of money argument

    “The compulsory acquisition process, which is subject to the Corporations Act, is likely to take approximately 4 to 6 weeks, but may take longer in some circumstances,” said NRW.

    “Primero shareholders who have not yet accepted the Offer may still, and are urged to, do so before the Offer closes at 7.00pm (Sydney time) on 19 February 2021 in order to receive their consideration within 10 business days of their acceptance being processed.

    “Otherwise, their Primero shares will be compulsorily acquired and they will have to wait at least four weeks to receive their consideration.”

    NRW is offering 27.5 cents cash plus 0.106 of NRW shares in exchange for each PGX share.

    M&A rational for NRW

    Investors could be getting excited about the growth prospects of the enlarged NRW following the circa $100 million takeover. The Primero acquisition will allow NRW to offer a wider range of services to clients as the target’s business is seen to be complementary to NRW.

    Primero focuses on the minerals and energy sectors and has a FY21 contract book worth around $285 million. It’s also the preferred EPC contractor on multiple projects totalling around $900 million.

    Is bigger really better?

    NRW’s takeover comes at a time when mergers and acquisitions (M&As) are in vogue. Northern Star Resources Ltd (ASX: NST) has also completed its merger with Saracen Mineral Holdings (ASX: SAR)

    Ultra-low interest rates and the hunt for earnings growth by companies needing to justify the run-up in share price valuation are likely to drive further deals on the ASX.

    Let’s hope these mergers work for the sake of shareholders given that most M&As flop.

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    Motley Fool contributor Brendon Lau 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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  • Emyria (ASX:EMD) share price up 131% this month. Here’s why

    blocks trending up

    The Emyria Ltd (ASX: EMD) share price has been one of the best performers over the month. The share price has risen an astonishing 131%. Today alone, shares in the healthcare technology and services company are up 13% to 27 cents at the time of writing.

    During the late afternoon trade, the company’s shares were being picked up for 26.5 cents. This reflects an all-time high for the Emyria share price.

    We take a closer look into what’s moving its shares over the past few weeks.

    What’s the go with Emyria?

    At the start of February, shares in the healthcare technology and services company were swapping hands for as little as 11 cents. However, a raft of positive announcements led investors to revaluate the company’s prospect, sending the Emyria share price higher.

    The first release was related to the company winning a digital health grant from the Western Australian government early this month. For this project, Emyria took the leadership role. This aimed to help boost the state’s digital health infrastructure and capacity in dealing with major health concerns.

    Following the digital health grant, the company announced last week that it added a second Melbourne clinic to its portfolio. The expanded presence comes after Emyria revealed that it has achieved record patient appointments in January 2021. In total, the company now has six locations across Australia gathering clinical data to improve the platform for patient care.

    Quick take on Emyria

    Emyria, formerly known as Emerald Clinics, operates a network of specialist medical clinics and purpose-built, remote patient monitoring technologies.

    The company captures real-world clinical data. This is used to provide consultation letters, containing information on prescription, recommended dosage, and duration of cannabinoid-based medicines.

    Emyria share price performance

    As noted, the Emyria share price began the month at 11 cents but has surged following positive investor sentiment. The company’s shares hit an all-time high today of 26.5 cents and could go higher based on its market capitalisation.

    Emyria’s current value stands at around $57 million according to its current share price. This represents an opportunity for explosive growth should the company continue to impress investors with its progress.

    Where to invest $1,000 right now

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    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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  • What’s going on with the Zip (ASX:Z1P) share price?

    Woman in mustard yellow blouse on laptop holds both hands out to either side with graphic illustration of question marks above them

    The Zip Co Ltd (ASX: Z1P) share price is on fire once again on Tuesday. At one stage the buy now pay later (BNPL) provider’s shares were up 15% to a record high of $14.53.

    When the Zip share price hit that level, it stretched its year to date gain to an incredible 160%. Its shares have since pulled back but are still up a decent 6.5% to $13.48.

    Why is the Zip share price charging higher?

    Given that there have been no broker notes relating to Zip (that I’m aware of) nor any recent announcements, the meteoric rise in the Zip share price over the last couple of weeks has been a big surprise.

    In fact, I’m not the only one that has been questioning this incredible rise. This morning Zip was given a speeding ticket by the Australian Stock Exchange.

    The operator noted a strong rise in the Zip share price today and a significant increase in the volume of Zip shares traded this week.

    In light of this, the ASX asked: “Is Z1P aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?”

    Zip’s response

    After lunch, Zip responded to the price query request, advising that it is “not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.”

    However, the company noted that there has been significant interest in the buy now pay later (BNPL) market generally, which may explain the rise.

    In addition, it reminded the stock exchange operator of a couple of announcements in December and January that may have helped drive the Zip share price higher.

    “(a) Successful placement in late 2020 and oversubscribed share purchase plan in early 2021 raising approximately $176.7 million in total (before costs) to fund Zip’s US growth, UK expansion, new market investments and growth and to support continued investment in Australia and New Zealand’s product range including scaling of Zip Business;.”

    “(b) A trading update for Q2FY21 announced on 21 January 2021, which confirmed extremely strong quarterly trading results year on year, including record results for Zip US (QuadPay).”

    The company hasn’t mentioned recent speculation of a secondary listing in the United States. This could mean it doesn’t see the development as material or it isn’t actually something the company is considering.

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    Returns as of 15th February 2021

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    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 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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  • Why the Sims (ASX:SGM) share price is leaping 8% today

    jump in asx share price represented by man jumping in the air in celebration

    Sims Ltd (ASX: SGM) shares are surging higher today following the company’s release of its half-year results for the 2021 financial year (H1 FY21). At the time of writing, the Sims share price is trading 8.31% higher at $13.81.

    Let’s take a look at how the metal and electronics recycler has been performing? 

    What’s pushing the Sims share price higher?

    The Sims share price is on the rise today after the company reported statutory earnings before income and taxes (EBIT) of $78.5 million. That’s an increase of $173.7 million from H1 FY20 when statutory EBIT came in at a negative $95.2 million.

    Underlying EBIT for the half year was $56.4 million, up $79.6 million from the first half of the 2020 financial year.

    Sales revenue of $2.45 billion fell by 9.5% from the prior corresponding period. The company had a net cash position of $164.5 million as at 31 December.

    Sims will pay an interim dividend of 12.0 cents per share (cps), fully franked. The dividend will be paid on 23 March 2021 with a record date of 8 March. (Meaning investors who want in on the dividend need to own Sims shares by 8 March.)

    Commenting on the results, Sim’s CEO Alistair Field said:

    We delivered significantly better results in first half FY21 due to improved margins, higher prices and lower operating costs. Pleasingly, the cost reduction program is on track to achieve annualised cost savings in excess of $70 million in FY21 compared to FY19.

    Looking at growth potential in the years ahead, Field added:

    I’m pleased with the substantial progress made in advancing our growth strategy during first half FY21. This provides a strong foundation to make further headway in FY21 and in future years.

    Foolish takeaway

    The Sims share price has been heading higher (though not in a straight line, of course) since the late March, coronavirus-induced selloff. Over the past six months, Sims shares have surged more than 65%. That compares to a 13% gain for the S&P/ASX 200 Index (ASX: XJO) over the same period.

    Year to date, the Sims share price has gained 1.3%.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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

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  • Why the SRG Global (ASX:SRG) share price reached a 52-week high

    rising asx share price represented my man in hard hat giving thumbs up

    The SRG Global Ltd (ASX: SRG) share price is on the move in mid-afternoon trade. Its shares reached a 52-week high during the first few minutes of the market open. However, some profit-taking has led its shares to slightly pull back to 49 cents, up 6.5%.

    The milestone achievement comes after the company announced a new contract with iron ore powerhouse Fortescue Metals Group Ltd (ASX: FMG).

    Let’s take a closer look at the deal.

    What did SRG Global announce?

    According to its release, SRG Global advised it has been awarded a 5-year term contract to provide multi-disciplinary services to Fortescue.

    Under the Master Agreement for Maintenance and Shutdown Services Agreement, SRG Global will service Fortescue’s mine, rail, and port assets throughout Western Australia. This will initially include providing rope access and electrical maintenance requirements across the Pilbara region.

    SRG Global noted that the locations include Christmas Creek, Cloudbreak, Firetail, Kings Valley, and Eliwana mine sites. In addition, rail and port infrastructure assets will also be serviced.

    The 5-year contract will generate around $150 million in revenue for SRG Global, depending on the number of works completed.

    The services agreement is expected to take effect immediately.

    Words from the Managing Director

    SRG Global Managing Director, David Macgeorge, welcomed the new deal, saying:

    We are delighted to be selected as a key partner to FMG and to provide critical maintenance and shutdown services across their Pilbara operations for the next five years. This is another significant step forward in our strategy to build a portfolio of annuity earnings, with quality clients, to deliver long-term sustainable growth.

    SRG Global share price performance

    Over the last 12 months, the SRG Global share price has gained more than 30% for patient investors.

    During the market rout caused by COVID-19, the company’s share fell to an all-time low of 17 cents. However, its share gradually picked up over time to reach a 52-week high of 50.5 cents today.

    Where to invest $1,000 right now

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    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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  • Why the Domain Holdings (ASX:DHG) share price is slipping today

    man looking down falling line chart, falling share price

    The Domain Holdings Australia Ltd (ASX: DHG) share price is in the negative territory today, after the company provided the market with its half-year results for FY21.

    In response to the numbers, shareholders sold off the property technology and services business as much as 7.4% on open, down to $4.92. The Domain share price has since bounced back to $5.06 at the time of writing.

    So, what has shareholders selling on today’s results? Let’s take a look.

    Impacted revenues weighing on the Domain share price 

    For the first half of FY21, Domain reported revenues of $137 million. This result is down 5.5% from the previous corresponding period on a like-for-like basis. However, Domain managed to reduce expenses year-over-year by 9.9% to $82.5 million – resulting in the company delivering improved earnings before interest, tax, depreciation and amortisation (EBITDA). Consequently, Domain increased net profit by 52.2% to $19.4 million for half.

    Shareholders may have been disappointed that Domain has deferred consideration of a dividend until full-year results. The rationale behind this decision is the on-going uncertainty generated by COVID-19.

    Interestingly, it appears Domain’s revenue for the half was heavily impacted by the reduction in its print business segment. Print revenue fell 65% to $6.2 million for the half – a result of printing being paused during COVID-19 lockdowns.

    Constrained property listings also weighed on the group’s print revenues.

    Forward outlook

    Management remains optimistic, with several promising indicators of growth for the half-year ahead. As an example, Domain reportedly continues to see atypical seasonal patterns, particularly demonstrated by listing strength in Melbourne.

    In the presentation, the company also points out a growing demand/interest in property listings compared to the same time last year.

    However, it was noted that total costs are expected to increase for the full year by a mid-to-high single-digit percentage. The second half will bear the brunt of the Jobkeeper scheme ending, which benefitted Domain through the last 2 halves.

    At the time of writing, the Domain share price is down 4.25% in today’s trade, but is up 11% year-to-date.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

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    Motley Fool contributor Mitchell Lawler 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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  • 3 things you might have missed from the Altium (ASX:ALU) half year result

    Altium share price

    The Altium Limited (ASX: ALU) share price was out of form on Monday following the release of its half year results.

    The electronic design software provider’s shares fell 5% to $29.19 after it posted a 3% decline in revenue to US$89.6 million.

    The Altium share price has continued its slide today and is down 0.7% to $28.99 at the time of writing.

    Three things you might have missed from Altium’s result

    While the headline numbers were there for all to see, there were a few items in its result that might have slipped under investors’ radars.

    The first thing you might have missed was the meteoric growth of its Altium 365 platform. It reported over 9,300 active monthly users and 4,400 monthly active accounts. This is up 83% and 69%, respectively, since July.

    This cloud-based platform is seen as the future of the company and the changes it has forced have been referred to by management as its Netflix Moment.

    Altium’s CEO, Aram Mirkazemi, commented: “Altium 365 is key to our future success through indirect monetization from our CAD software tools and, in time, direct monetization from the broader ecosystem. I am most heartened by the strong adoption of Altium 365 and, with our Netflix organizational changes behind us, I am confident of a much stronger second half.”

    The second thing you might have missed

    Another thing you may have missed from Altium’s half year result is its growing customer base of high profile companies.

    The company counts the likes of Amazon, Apple, Boeing, CSIRO, Disney, Ford, Google, Mercedes-Benz, Microsoft, NASA, ResMed Inc (ASX: RMD), SpaceX, and Tesla as customers.

    In respect to the latter, the electric vehicle giant is currently advertising for a printed circuit board layout designer and has a preference for someone with “extensive experience with Altium net classes” and “familiarity with Altium Designer PCB layout tools and schematic capture.”

    The fact that one of the world’s most innovative companies uses its software appears to demonstrate just how highly regarded its platform is.

    A third thing you might have missed

    A third and final thing you might have missed was its enormous total addressable market (TAM).

    In FY 2021, the company is expecting to deliver revenue of US$190 million to US$195 million. However, this is nothing compared to its TAM, which has expanded following the release of Altium 365.

    At present, the company estimates that the printed circuit board electronic design software market is worth US$1 billion and growing. This gives it a long runway for growth over the next decade.

    And with the total global electronic manufacturing and supply chain estimated to be worth over US$2 trillion, there’s also a huge opportunity for its Octopart electronic parts search engine.

    Is the Altium share price in the buy zone?

    According to a note out of UBS, the Altium share price could be in the buy zone now.

    In response to its half year results, its analysts have upgraded its shares to a buy rating with a $34.00 price target.

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

    The post 3 things you might have missed from the Altium (ASX:ALU) half year result appeared first on The Motley Fool Australia.

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