If you’re looking for buy and hold options, then you might want to take a look at the shares below.

Here’s why they could be top options for investors over the long term:

Adore Beauty Group Limited (ASX: ABY)

The first ASX share to consider as a buy and hold option is Adore Beauty. It is the country’s leading pureplay online beauty retailer which aims to deliver users an empowering and engaging beauty shopping experience.

The beauty of this is that as well as being a place to buy products, the Adore Beauty website is also a destination for education and entertainment. This means that consumers frequent its website even when they are not seeking to purchase items.

Last month the company released its half year results and revealed an 82% increase in active customers to 777,000. From these, Adore Beauty generated an 85% lift in revenue to $96.2 million over the six months. 

Positively, this is still only a small portion of a growing Australian beauty and personal care market currently worth ~$11 billion a year.

Morgan Stanley is a fan of the company. It currently has an overweight rating and $8.75 price target on its shares.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The second ASX share to consider is actually an exchange traded fund (ETF). The BetaShares Asia Technology Tigers ETF provides investors with exposure to the rapidly growing Asian tech sector.

Given how the the Asian economy is outpacing the growth of the west, it appears to be a great place to invest over the next decade and beyond. Especially with its younger and tech-savvy population, which is leading to Asia surpassing the West in respect to technological adoption.

Among the fund’s holdings you will find the likes of Alibaba, Baidu, JD.com, Meituan Dianping, Samsung, Tencent, and Pinduoduo.

In respect to Pinduoduo, it is an e-commerce platform that offers a wide range of products from daily groceries to home appliances. Its platform connects distributors with consumers directly through an interactive shopping experience, allowing shoppers to team up to buy items at lower prices. At the end of September, it was serving 731 million active buyers.

Another company included in the fund is Alibaba. It is widely regarded to be the Amazon of China. At the end of September the company had 757 million annual active customers across its Alibaba, Taobao, and Tmall brands. From these brands, the company is estimated to control a sizeable 56% of China’s e-commerce market.

More reading

• 10 of the best ASX shares to buy in March
• ASX fashion and beauty shares shine on half-year results
• 2 buy-rated small cap ASX shares growing rapidly
• 2 ASX shares at 52-week lows: Are they bargain buys?
• 2 ETFs to buy in this tech sell off

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. 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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It seemed too good to be true.

Just days after US President Joe Biden edged out former President Donald Trump in the November US elections, the world was greeted by multiple effective COVID-19 vaccine announcements.

Coupled with ongoing turbocharged quantitative easing (QE) programs from the world’s leading central banks, near-zero official interest rates, and trillions of dollars in government stimulus packages, the global economic recovery from the pandemic knockdown began in earnest.

Leading fund managers expect that recovery to continue apace, and they see more opportunities ahead for ASX recovery shares.

Andrew Clifford is the chief investment officer at Platinum Asset Management. According to Clifford (quoted by the Australian Financial Review), “I think that we will have a very strong 2021, and that will probably flow through to 2022. In the stock market, there are opportunities because I think that the natural state of being for the economic system is for it to grow.”

Hugh Giddy, large-cap portfolio manager at Investors Mutual, shares that optimistic outlook, saying, “If we don’t have lockdowns, that in and of itself creates recovery. It’s a lot of moving parts, but overall I think that the economy will improve both here and elsewhere.”

Why this fund manager highlights these 2 ASX recovery shares

Romano Sala Tenna, portfolio manager at Katana Asset Management, says it’s time for investors to look beyond the big four banks, which have all performed well in 2021.

Instead, as the AFR reports, Sala Tenna prefers ASX financial shares like Kina Securities Ltd (ASX: KSL):

There are some smaller financials, like Kina Securities, we’ve got a position in. As you’re moving down the food curve a bit and up the risk curve, we’re seeing some really compelling value. We are re-allocating some capital there.

Sala Tenna is also keen on select ASX energy shares, one of the sectors he says he sees “pronounced value”.

They haven’t rebounded with the oil price. There’s a lot of scepticism around the oil price.

Sala Tenna has been snapping up shares of Woodside Petroleum Ltd (ASX: WPL).

Kina Securities and Woodside Petroleum share price snapshot

Kina Securities is a small-cap company with a market cap of $286 million. It pays an annual dividend yield of 9.2%, unfranked. Kina’s share price is up 18% over the past 12 months and up 10% so far in 2021.

Woodside Petroleum has a market cap of $24 billion and is listed on the S&P/ASX 200 Index (ASX: XJO). Woodside pays an annual dividend yield of 2.1%, fully franked.

The Woodside Petroleum share price is up 41% over the past 12 months, compared to a gain of 35% on the ASX 200. Year-to-date, the Woodside share price is up 10%, and it’s currently trading at $25.34 per share.

More reading

• ASX 200 Weekly Wrap: Calm restored to the ASX 200
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Tuesday

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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As I’m a big fan of small cap shares, I feel quite fortunate to have a large number to choose from on the Australian share market.

Three small cap ASX shares that stand out from the rest and could have bright futures are listed below. Here’s what you need to know about them:

Booktopia Group Ltd (ASX: BKG)

Booktopia is an online book retailer which has been growing very strongly. It has been a very positive performer so far in FY 2021. This has been driven by both the shift to online shopping and its investment in a new distribution centre.

The latter allowed the company to take advantage of increased demand by shipping more books than ever during December. This led to Booktopia shipping a total of 4.2 million units for the first half, up 40% on the prior corresponding period.

In respect to its financials, this underpinned a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million.

MNF Group Ltd (ASX: MNF)

Another small cap ASX share to look at is MNF Group. It is a leading provider of Voice over Internet Protocol technology (phone calls over the internet) to businesses and consumers.

It has also been performing strongly in FY 2021. Last month the company released its half year results and delivered a 15% increase in recurring revenue to $55.7 million. This was driven by strong growth in new numbers and a Net Revenue Retention of 115%. The latter means the company’s existing customers are not just sticking around, they are spending more.

Pleasingly, management is positive on the future. This is thanks to the structural tailwinds it is experiencing and its expansion into the Asia market.

Universal Store Holdings Limited (ASX: UNI)

A final small cap to watch is Universal Store. It is a fashion retailer which delivers a carefully curated selection of on-trend products to a target 16-35 year old fashion focused customer.

As with the others, Universal has been a positive performer during the pandemic and reported impressive growth during the first half of FY 2021.

For the six months ended 31 December, Universal Store delivered a 23.3% increase in sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million. This was driven by strong online and like for like store growth.

Positively, the second half has started strongly, putting the company in a position to deliver a bumper profit result in August.

More reading

• 2 ASX tech shares rated as buys by brokers
• 4 exciting small cap ASX shares to watch
• 2 exciting small cap ASX shares to watch
• 2 fast-growing small cap ASX shares to watch
• Why Flight Centre, Life360, Nanosonics, & Universal Store are racing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended MNF 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 Ainsworth Game Technology Limited (ASX: AGI) share price performed exceptionally well today, closing the session up 10.96% to 81 cents. Ainsworth shares had closed at 75 cents each on Friday afternoon, but opened at 80 cents apiece this morning, a level around which they essentially revolved all day.

This latest move in the Ainsworth share price caps off what has been an especially pleasing few months for shareholders. Back in early November 2020, Ainsworth shares were trading for 28 cents each. That means at today’s prices, the shares are up 189% since then. However, they are also still down 25% from the peak of $1.08 per share we saw at the end of last month.

So what is Ainsworth Game Technology? And why were Ainsworth shares shooting higher today?

What does the company do?

Ainsworth Game Technology is a gaming company established in 1995. It was founded by Len Ainsworth. Mr Ainsworth was also the founder of the ASX’s most prominent gaming manufacturer, Aristocrat Leisure Ltd (ASX: ALL).

Like Aristocrat, Ainsworth also manufactures poker machines. It has facilities that enable the design, development and testing of these machines. The company also offers services such as installation, maintenance/servicing and support.

Ainsworth supplies markets as diverse as Europe, North America and Latin America, as well as Australia and Australasia.

Ainsworth has had a rough year due to the coronavirus pandemic effectively shuttering gambling institutions around the world. Last month, the company announced it was expecting to report a net loss before tax of $14 million for the six months ending 31 December 2020.

However, on the same day, the company also announced it had established a new, secured credit facility with the US-based Western Alliance Bancorporation. Investors were evidently pleased with that announcement, given Ainsworth shares rose 15% that day.

What fuelled the Ainsworth Game Technology share price today?

Something very interesting was certainly happening with this company today. On Friday last week, after market close, we had an announcement from S&P Global. S&P Global is the company that administers the S&P/ASX 200 Index (ASX: XJO) and the other major indexes on the ASX. In this announcement, S&P reported that Ainsworth would be removed from the All Ordinaries Index (ASX: XAO).

Normally when a company is removed from an index, it causes a selloff from investors. We covered some of the winners and losers from the ASX 200’s rebalancing this morning in fact. But the opposite has happened today, so this is strange indeed.

Unlike the ASX 200, the All Ordinaries is not an index that is widely covered and tracked by exchange-traded funds (ETFs). So that could be behind this situation.

But we could also just be seeing some price discovery here. Last week, Ainsworth fell by around 10% between Wednesday and Friday to an intra-week low of 74 cents per share. That was before the rebalancing became public knowledge. Perhaps investors have simply decided that price was too low, and have been bidding up the company accordingly.

ASX data does show that trading volumes today were significantly above the company’s 5-day average.

Whatever the reason for today’s Ainsworth share price moves, investors will no doubt be pleased. At the current share price, Ainsworth has a market capitalisation of around $245 million.

More reading

• Why the Ainsworth (ASX:AGI) share price surged 15% today

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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The Blackmores Limited (ASX: BKL) share price was on form again on Monday and continued its ascent.

The health supplements company’s shares climbed 2.5% to $87.32 at one stage to hit a 52-week high.

When the Blackmores share price hit that level, it meant it was up 31% over the last 12 months. However, it is worth noting that it is still down around 60% from its record high.

Why is the Blackmores share price at a 52-week high?

Investors have been buying Blackmores shares thanks to a major improvement in its performance after a couple of forgettable years.

For the six months ended 31 December, the company reported revenue of $302.6 million. This was a 3% increase on the prior corresponding period.

Management advised that this was driven by a 13% increase in International revenue and a 25% lift in China revenue, which managed to offset a 10% decline in ANZ revenue to $148 million.

Positively, thanks to margin expansion, Blackmores’ profit grew at the quicker rate of 8% to $19.4 million.

This improvement in its performance allowed the company to reinstate its dividend. Blackmores declared a fully franked interim dividend of 29 cents per share.

What’s next?

Management was cautious but positive on its outlook. While the company is expecting growth in Asia, it suspects that ANZ revenue could remain soft.

Particularly given during the weakness in the daigou channel because of COVID-19 border closures and lower foot traffic.

Can the Blackmores share price go higher?

According to a recent note out of Morgans, its analysts believe the Blackmores share price is fully valued now.

The broker has put a hold rating and $86.00 price target on the company’s shares, which is a touch lower than where it trades today.

While its analysts expect its efficiency program to deliver strong results for the company, it isn’t enough for a more positive rating. At 35x estimated FY 2022 earnings, it appears to believe the upside is limited in the near term.

More reading

• Top brokers name 3 ASX shares to sell today
• Why Bega, Blackmores, IDP Education, & SeaLink shares are zooming higher
• ASX 200 down 0.45%: Woolworths rises, Blackmores jumps, Appen sinks
• Blackmores (ASX:BKL) share price charges higher after profit growth returns
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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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ECS Botanics Holdings Ltd (ASX: ECS) shares have slumped in late-afternoon trade following an announcement regarding a capital raise. At the close of trade, the ECS Botanics share price is down 10% at 5.4 cents.

Let’s take a look at what is driving the agribusiness and hemp food company’s share price down.

Why is the ECS Botanics share price falling?

The ECS share price falls as investors indicate displeasure with the company’s latest update that will perhaps further dilute shareholdings.

In today’s release, ECS advised that it has received strong commitments to complete a $4 million share placement. Offered at 5 cents apiece, sophisticated and professional investors have confirmed to partake in the company’s capital raising efforts.

In addition, a rights issue will be available to existing shareholders at 5 cents per share to raise an extra $2 million. For every 17 ordinary shares held, 1 new share can be issued.

The offer price represents a discount of 19% on the company’s 5-day volume-weighted average price of 6.2 cents. However, after today’s steep fall, the placement only offers a 10% mark-down.

This will be completed under the company’s listing rule 7.1, which allows 15% of its shares to be issued without shareholder approval. The placement of the shares from sophisticated and professional investors is expected to start trading on 24 March 2021. The rights issue timetable will be released later this week.

ECS said as well as providing additional working capital to accelerate growth, it would use the funds for several business affairs. This will include completing its acquisition of Murray Meds and purchasing plant and equipment.

In the next 6 months, the company plans to execute a raft of sales agreements and partnerships. Furthermore, it will seek to expand its Victorian and Tasmanian operations, further boosting manufacturing capacity.

What did the managing director say?

ECS managing director Alex Keach commented:

Having received shareholder approval for our acquisition of Murray Meds, we are excited to complete this transaction which positions ECS as the largest, lowest cost and most geographically diverse cannabis producer in Australia.

Murray Meds has executed several important supply agreements in recent weeks for medical cannabis dried flower, concentrate and final dose oils in Australia as well as Europe with several more expected soon.

The ECS share price has gained more than 160% since this time last year and is up over 40% year-to-date.

More reading

• Why the ECS Botanics (ASX:ECS) share price is moving higher today
• ECS Botanics (ASX:ECS) share price edges lower despite positive update

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 Magellan Financial Group Ltd (ASX: MFG) share price closed Monday’s session 5.32% higher. By the market’s close, shares in the fund management business were trading at $45.57 after closing Friday’s session at $43.27.

By comparison, the S&P/ASX 200 Index (ASX: XJO) edged just 0.12% higher for the day.

Let’s take a closer look at what’s been happening for Magellan. 

Magellan backed Barrenjoey Capital gets ASX licence

In news that could have helped boost the Magellan share price today, the Sydney Morning Herald (SMH) reported that the ASX has granted Barrenjoey Capital (of which Magellan owns a 40% stake) a licence to be a market participant. This means the investment bank can clear and settle trades in its own name.

Barrenjoey already operates within the corporate finance space and intends to open up its markets arm by the end of FY21, now that it has received the licence.

In addition to the licence granting, SMH also reported that Barrenjoey is lifting top talent from some of its rivals. After picking up Challenger Ltd (ASX: CGF) managing director Brian Bernari as CEO, and UBS executive Guy Fowler as chair, the company is making several more acquisitions.

Three more UBS executives have left the Swiss bank for Barrenjoey. They are banking analyst Jonathan Mott, mining analyst Glyn Lawcock, and gambling and transport analyst Matt Ryan.

As well, BHP Group Ltd (ASX: BHP) chair, Ken Mackenzie, is rumoured to soon be joining Barrenjoey as a senior strategy partner.

What is Barrenjoey Capital?

Launched in 2018, Barrenjoey Capital is the latest investment bank to enter the Australian market. A joint venture between Magellan and Barclays, Barrenjoey provides corporate and strategic advice, equity and debt capital underwritings, cash equities, research, prime brokerage, and fixed income trading.

While Magellan and Barclays are financial backers and own equity in the company, the majority of the company will be owned by its employees.

Magellan’s net profit after tax for the six months ending 31 December 2020 was down 2% to $213.1 million. Part of the reason for this was the $6.1 million net loss Magellan incurred from its Barrenjoey investment.

Magellan share price snapshot

During the COVID-19 market crash of March last year, the Magellan share price reached a 52-week low of $30.10. At today’s price, it has gained more than 50% since that time. However, Magellan shares are down nearly 31% from their 12-month high of $66.00 achieved in August last year.

Magellan Financial has a market capitalisation of around $7.95 billion.

More reading

• 2 ASX 200 shares to buy for income
• Triple whammy hammers the Fortescue (ASX:FMG) share price today
• Do brokers rate the BHP (ASX:BHP) share price as a buy?
• This fundie refuses to invest in gambling and fossil fuels
• Can ASX BNPL companies like Afterpay (ASX:APT) compete with Paypal?

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger 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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If Mexico moves forward with legalising recreational marijuana use, the ripple effects could boost cannabis shares across the globe. ASX cannabis shares, especially those with international markets in their sites, could enjoy a fresh tailwind for years to come.

What’s going on with Mexico and cannabis?

It wasn’t long ago that Mexican authorities still diligently pursued and prosecuted people for breaking the nation’s cannabis laws. Even minor possession could incur a heavy fine or jail term.

That changed in 2009, when the nation decriminalised the possession of small amounts of cannabis. Nine years later, in 2017, Mexico gave the green light to select medicinal marijuana products. The medicinal market is likely to expand this year.

But even more importantly for ASX cannabis shares, the country could soon join the growing cadre of nations to fully legalise its recreational use.

According to Bloomberg:

With a population approaching 130 million, Mexico is on the cusp of becoming the largest legal recreational market in the world. That could pressure the US to follow suit, since it will be sandwiched between Mexico and Canada, countries that both allow cannabis use.

Emily Paxhia, managing partner of Poseidon Asset Management, points out why Mexico’s move to legalise recreational use could be especially impactful to the global cannabis industry (quote summarised by Bloomberg):

Mexico’s move is particularly significant for global cannabis. Because many multinational pharmaceutical, alcohol and consumer products companies are already there, it could make the country an attractive place to export cannabis and related products from.

And it’s not just Mexico looking to legalise recreational use. Although the measure recently failed in New Zealand by a narrow margin, Curaleaf Holdings Inc (CNSX: CURA) executive chairman Boris Jordan says, “Countries like Poland, Ukraine, South Africa – there are even rumours of Egypt – are also moving toward legalisation.”

And as the world marches towards legal cannabis use, well-placed ASX cannabis should benefit.

Two leading ASX cannabis shares

There are a number of ASX cannabis shares that stand to benefit as Mexico and the rest of the world move to legalise both the medicinal and recreational use of marijuana.

We’ll just have a quick look at 2.

Creso Pharma Ltd (ASX: CPH) develops and commercialises pharmaceutical-grade cannabis and hemp-based nutraceutical products and treatments for humans and animals.

Flat in intraday trading today, the Creso share price is up 17% year-to-date and up an impressive 250% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up 39% over the past full year. Creso has a market cap of $200 million.

Althea Group Holdings Ltd (ASX: AGH) grows, supplies, imports, and exports pharmaceutical-grade medicinal cannabis in Australia and the United Kingdom.

The Althea share price is also flat in afternoon trading. So far in 2021 shares have gained 17%, while over the past 12 months the Althea share price has soared 222%. Althea has a market cap of $135 million.

More reading

• What’s with the Creso Pharma (ASX:CPH) share price today?
• Why the Althea (ASX:AGH) share price is pushing higher today
• The Creso (ASX:CPH) share price fizzles despite new distribution deal
• Why the Althea (ASX:AGH) share price is pushing higher today
• Why the Althea (ASX:AGH) share price is surging 8% higher today

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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The Flight Centre Travel Group Ltd (ASX: FLT) share price has been a strong performer over the last six months.

During this time, the travel agent giant’s shares have rallied an impressive 40% higher.

Why is the Flight Centre share price up 40% in six months?

Investors have been buying Flight Centre shares during this time thanks to the improving outlook for the travel market following the successful development of several effective COVID-19 vaccines.

This has sparked hopes that travel and tourism could return to normal quicker than expected. And with Flight Centre having such a strong balance sheet following its capital raising and cost cutting, it could be in a position to put these funds to work on earnings accretive acquisitions when trading conditions return to normal.

Can the Flight Centre share price go even higher?

According to one leading broker, Flight Centre’s shares could have peaked now.

A note out of Morgan Stanley this morning reveals that its analysts have downgraded the company’s shares to an underweight rating with a $17.50 price target.

This compares to the current Flight Centre share price of $18.44.

Why did Morgan Stanley downgrade its shares?

The broker made the move on valuation grounds after the aforementioned strong gain by the Flight Centre share price.

In fact, the broker notes that Flight Centre’s shares are now trading ahead of pre-pandemic levels when adjusting for its capital raising.

Instead of Flight Centre, the broker believes investors should be buying Qantas Airways Limited (ASX: QAN) shares for exposure to the travel and tourism sector.

Morgan Stanley currently has an overweight rating and $5.90 price target on the airline operator’s shares.

It isn’t alone with that recommendation. This morning analysts at Macquarie upgraded Qantas’ shares to an outperform rating with a $6.35 price target.

Whereas last week Citi upgraded them to a buy rating with a $6.14 price target. This compares to the current Qantas share price of $5.48.

More reading

• Leading brokers name 3 ASX shares to buy today
• Why brokers think the Qantas (ASX:QAN) share price could fly 17% higher
• These are the 10 most shorted shares on the ASX
• Top brokers name 3 ASX shares to buy next week
• The JobKeeper payment is ending. So what will happen next?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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 Clean TeQ Holdings Limited (ASX: CLQ) share price is climbing today after the company announced a new water treatment contract. Shares in the small-cap company are up 3.85% at the time of writing, trading at 27 cents.

The Clean TeQ share price has been on an astounding run over the last year, gaining 107.69%. In doing so, the company has outpaced the All Ordinaries Index (ASX: XAO) return of 37.5% in the same period.

What happened

The Clean Teq share price lifted this morning after the company advised that it had been awarded a new contract for a water treatment plant upgrade in Oman.

The company will upgrade the existing ‘DESALX’ technology plant that is used for the purification of water.

Clean TeQ said by treating the waste, the plant operator would be able to recycle a significant proportion of water for re-use in the processing plant rather than disposing of it.

So what

As announced in early January, the company was awarded a contract to undertake the design to upgrade the water treatment plant in Oman. However, changes in salt and arsenic loads have resulted in the need for further upgrades.

The upgrade will focus on neutralising the waste components mentioned above and precipitating contaminants for easier recovery. This will enable the plant to decrease its water usage and generate lower brine levels for disposal.

With the initial contract near its completion, the company has now been awarded a further agreement in excess of $1 million to upgrade the project again. It is proposed that Clean TeQ also supply construction oversight and commissioning support, but this has not been included in the current scope and costing.

Management comments

Commenting on the contract, Clean TeQ managing director Sam Riggall said:

We have demonstrated our capability in designing, constructing and commissioning our highly effective proprietary water purification systems in a range of different applications.

As we move towards the proposed demerger of our water business later this year, it is pleasing to see that we are making good progress on our goal of growing revenues.

At the current Clean TeQ share price, the company has a market capitalisation of $230.3 million.

More reading

• Clean TeQ (ASX:CLQ) share price nosedives 8% on $10 million loss

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

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