I can’t decide whether I’m jinxed, or whether I’m just proof that Murphy’s Law is real and, well, Murphy is just a no-good so-and-so.

Whatever the reason, if you owned certain US stocks before last night, you’re welcome.

See, I’d been planning to buy some US companies for a while now. But, between getting the money into my US brokerage account (in US dollars), and the trading rules here at The Motley Fool (yes, okay, and my never quite getting around to it), I just hadn’t done it.

So, last night, after dinner, I sat down and finalised my list of the companies I wanted to buy with the cash I had in the account.

Then, this morning, I woke up, and…

And the shares were up. 

By quite a bit.

Bloody Murphy’s Law.

So, I didn’t buy them, right?

Wrong.

I bought them anyway.

Now, there’ll be more than a few of you shaking your head right now.

Who buys when shares are up, for goodness sake?

Why not wait for them to drop?

Sentiments I understand.

But sentiments you need to dispense with, if you’re going to be a long term investor.

See, here’s the thing: buying — or not — based on what happened yesterday, today, or tomorrow, is not a particularly great way to invest.

You reckon the person who bought Woolies shares at $3, kicking herself for missing them at $2.90, is still kicking herself today, when the share price is closer to $40?

I mean, sure, given our druthers, we’d all choose to jump in the time machine and travel back to the Woolies IPO and buy shares then, but we don’t have that luxury.

Frankly, I don’t know if my hypothetical mate would have had the chance to buy Woolies again at $2.90.

Maybe she would have.

Or maybe not.

And what would have been the bigger sin? 

Missing out on $0.10, or missing out altogether on buying, because your target price was never reached?

Still, that’s just a hypothetical, right?

Would never happen, right?

Not so fast.

You know my Woolies example? There’s a US analog.

Some bloke called Buffett.

And some company called Wal-Mart.

You might have heard of it. And him.

Buffett estimated that his company, Berkshire Hathaway (I own shares, for the record), lost out on US$10 billion in profits when he stopped buying after the share price rose through a predetermined price.

He stopped buying because he’d set a mental limit that he wouldn’t cross.

In hindsight, he cites it as one of his biggest mistakes.

Which isn’t to say he should’ve or could’ve paid just any old price for the shares.

Or that you and I should, either.

But if you’re only going to pay, say, $2.90 rather than $3 per share for a company, do you really reckon your valuation skills are so good that you can correctly estimate the worth of a company to within 3%?

Because I have to tell you, mine aren’t.

And here’s the other thing — I reckon, on balance, I’m much better off finding a company with a great future and paying an approximately attractive price, then obsessing over the last 5 or 10 cents on a mediocre business.

Because, maybe the share price comes back down.

But maybe it doesn’t.

And if we’re right about the long term potential, that bit is going to matter a whole lot more.

Want to spin out a little more on the ‘coulda, shoulda, woulda’ stuff?

One of the companies I bought last night was up about 5% on the day before.

Ouch.

Then again, it’s still down 25% on its 2021 highs.

Beauty!

Oh, but it’s currently selling for more than double what it was selling for a year ago.

Bugger.

And around and around we go.

Just like Buffett’s $10 billion, or my mate’s 10 cents, it’s easy to get caught up in the emotion of trying to pay the best price.

But don’t miss the forest for the trees. Buying the right business, at approximately the right price, is far, far better than obsessing over the last few cents per share.

Maybe the shares I bought this morning fall overnight.

Maybe they go up.

Maybe they close, unchanged.

I really don’t care.

If I’ve bought quality, at a decent price, this’ll be the last time I even remember what happened yesterday.

The prize is through the windscreen, not the rear vision mirror.

(Oh, and if you’re wondering what I bought, I could tell you, but I’d have to kill you. Well, I’d be in some serious trouble at work, at the very least. The Motley Fool’s trading rules prohibit me from talking about a company, by name, for two full market days before and after making a trade. And I enjoy my job, so I’d like to keep it!)

Fool on!

More reading

• ASX 200 drops, Zip down, Afterpay soars
• Demoted AMP exec paid $1m bonus for 53 days’ work
• Why did the Latin Resources (ASX:LRS) share price bomb 14% today?
• Here’s why the Fortescue (ASX:FMG) share price sank 8% today
• Why this fundie tips Australian Vintage (ASX:AVG) shares

Scott Phillips owns shares of Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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 S&P/ASX 200 Index (ASX: XJO) fell by 0.8% to 6,714 points.

Here are some of the highlights from the ASX today:

Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) have opposite performances

It was a differing performance for some of the largest ASX 200 buy now, pay later (BNPL) companies.

The Afterpay share price jumped 8.4%, but the Zip share price fell 3.8% today.

It was recently announced that PayPal will be launching its buy now, pay later offering for Aussies by early June 2021.

PayPal has over 9 million active accounts in Australia and will be ready for the end of financial year sales. Consumers will be able to access this using the standard PayPal button at the checkout. Merchants can also have a payment option on the website.

Andrew Toon, General Manager, Payments, PayPal Australia said:

Australian consumers are looking for more choice and flexibility and PayPal Pay in 4 gives them yet another way to purchase securely using PayPal. PayPal’s digital wallet is the only solution that provides multiple ways to pay all in the one place – instantly with debit or credit card; 21 days later with our Pay After Delivery option; and now in four interest-free instalments using PayPal Pay in 4.

Our Australian business customers have been requesting buy now pay later functionality from us, and we’re excited that we can offer PayPal Pay in 4 to them at no additional cost.

Shopping habits are changing at an unprecedented rate and during the pandemic we saw more than two million Australians start shopping online for the first time. We will continue to support Australian businesses of all sizes to adapt to rapidly changing consumer behaviours by evolving our service to meet their needs.

Afterpay has completed the acquisition of its European purchase called Pagantis. 

Gold Road Resources Ltd (ASX: GOR)

The Gold Road Resources share price went up more than 5% after announcing its result and declaring a final dividend.

Gold Road said that it generated $294.7 million of revenue from 126,434 ounces of gold sales. It generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $170.6 million, at an EBITDA margin of 58%.

The ASX 200 gold miner generated net profit after tax (NPAT) of $80.8 million, with operating cash flow of $142.7 million. It also made $105.5 million of free cash flow, translating to $817 free cash flow per ounce of production for 2020.

It became debt free after fully repaying its borrowings on 21 July 2020. Gold Road finished the period with cash of $126.4 million.

The board declared a dividend of 1.5 cents for the six month period to 31 December 2020. Its dividend policy is 15% to 30% of free cash flow for the six-month period.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine Estates share price rose by around 3% after announcing some news.

The ASX 200 share said that it has reached a long-term agreement The Wine Group for several commercial tier brands in its US portfolio.

Under the terms of the long-term licensing agreement, The Wine Group will source and sell Beringer Main & Vine, Beringer Founders’ Estate, Coastal Estates and Meridian brands in the Americas.

The Wine Group will acquire existing inventories associated with these brands on a progressive drawdown basis and will assume responsibility for related future bulk wine supply contracts.

Tim Ford, the CEO of Treasury Wine Estates, said:

We are delighted to be entering into this long-term transaction with The Wine Group, which will be of mutual long-term benefit to our respective organisations. For TWE, this transaction is a significant milestone towards our plans to deliver the future state remium US wine business and we can now focus solely on continuing the growth of our premium brand portfolio to drive future performance in the Americas.

More reading

• Why this fundie tips Australian Vintage (ASX:AVG) shares
• Here are some of the best performing ASX tech shares today
• Why Accent, Fortescue, Western Areas, & Zip shares are tumbling lower
• Could this be why the Zip (ASX:Z1P) share price lost all its gains today?
• ASX 200 down 0.2%: Afterpay surges, gold miners jump, Fortescue sinks

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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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Demoted AMP Ltd (ASX: AMP) executive Boe Pahari was paid close to a $1 million bonus for running AMP Capital for all of 53 days.

The disclosure was made Wednesday in the company’s annual report.

The report stated Pahari was a beneficiary of the AMP Capital Enterprise Profit Share (EPS) plan for his role as global head of infrastructure equity and the northwest region.

“The prorated amount of the EPS award was $937,724 for the time during which he was the chief executive, AMP Capital.”

Why was Pahari only in the position for 53 days?

Pahari was promoted to AMP Capital chief on 1 July last year.

But in August explosive details of sexual harassment allegations made against him were publicly revealed.

This included Pahari sending the female subordinate on a gratuitous trip to the UK, then allegedly saying she made him look like a “limp dick” when she refused his offer to buy her clothing. 

He was also accused of extending her accommodation against her wishes then suggesting they communicate on Whatsapp to avoid scrutiny.

AMP’s share price tanked as investors called for Pahari’s head.

The company initially defended the promotion. But the subsequent pressure became too much to bear and Pahari was demoted back on 23 August — after just 53 days in the position.

Chair David Murray and board member John Fraser also exited that day.

AMP staff outraged about Pahari’s bonus

AMP shareholders have seen the stock price tumble from $5.43 just 3 years ago to now $1.46.

But it seems they might not be the only ones wondering about the generous bonus to Pahari.

According to AFR.com, a staff town hall meeting on Wednesday went haywire with employees complaining about the generosity to the executive.

After a tough 2020, the financial services giant had put on a pay rise freeze and is currently seeking to cut 20% of its workforce while it sells off a part of the business to a US buyer.

AMP also released its annual sustainability report on Wednesday, which confirmed the Pahari scandal had an impact on the workforce.

“In the second half, disclosure of workplace conduct and consequence management issues had a negative impact on engagement which increased talent risk for AMP.”

More reading

• AMP (ASX:AMP) share price on watch as second buyer for its asset could emerge
• ASX 200 sinks 2.4%, Afterpay plunges, AMP jumps
• ASX 200 down 2.3%: Afterpay & Kogan sold off, Orica smashed, AMP pushes higher
• Why AMP, Bubs, BWX, & Lynas shares are pushing higher
• AMP (ASX:AMP) share price on watch with proposed $2.3bn joint venture

Motley Fool contributor Tony Yoo 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 Latin Resources Ltd (ASX: LRS) share price bombed today, despite announcing good news this morning.

The mineral exploration company is a favourite with Reddit investors and, even after today’s fall, currently has an incredible 12 month return of 1,600%.

At close of trade today, Latin Resources’ share price is 5.3 cents.

What did Latin Resources announce?

The company announced this morning that the second batch of samples from its Noombenberry project have shown the same ultra-bright white kaolin and high-grade halloysite as the first batch.

Latin Resources is the sole owner of Noombenberry, located in Western Australia.

The company also stated today that it has plenty of cash to fund the additional drilling needed to extend the maiden resource estimate. Especially, due to the shallow nature of the minerals found and the consistency of assay results.

The announced today results included:

• 17 metres at 12% halloysite and 65% kaolinite from 3 metres, including:
  • 3 metres at 23% halloysite and 65% kaolinite from 8 metres.
• 10 metres at 10% halloysite and 80% kaolinite from 2 metres.
• 16 metres at 7% halloysite and 65% kaolinite from 5 metres, including:
  • 4 metres at 14% halloysite and 66% kaolinite from 9 metres.

and

• 17 metres at 5% halloysite and 87% kaolinite from 10 metres, including:
  • 5 metres at 12% halloysite and 67% kaolinite from 22 metres.  

Both kaolin and halloysite are clay-like materials. They both can be used in the production of porcelain and fine china, although, generally, only kaolin is used for this purpose. Halloysite is most often used in industrial applications, particularly in the refining of petroleum.

Management commentary

Latin Resources executive director Chris Gale said the company was pleased to see its initial results mirrored in this batch of samples.

We now have results for over 50 of our 197 holes drilled at Noombenberry, and we are seeing continuity and consistency of the high-grade halloysite and bright to ultra-bright white kaolinite. This is shaping up to be a very large and more importantly, a high-quality deposit that we expect will command strong attention from potential end-users.

Work is well underway on building our geological wireframes, so that we can be ready to commence the resource estimate as soon as all of our test work results have been received. The team is focused on fast tracking this process, as well as looking toward the next phase of drilling to extend our coverage to the north, where our initial results show the mineralisation remain open.

More about Latin Resources

Noombenberry is Latin Resources’ first foray into mining kaolinite and halloysite. It has previously made a name for itself as a miner of gold, copper and lithium.

The company has mines in Australia and South America – mining gold in New South Wales; copper in Peru; and lithium in Argentina and Brazil.

Latin Resources share price snapshot

A true marvel, despite today’s drop, the Latin Resources share price is currently up by 1600% over the past 12 months with a year to date return of 93%.

Latin Resources share price is now 5 cents, having dropped 1 cent since opening this morning.

The company has a market capitalisation of $81.1 million with approximately 1.3 billion shares outstanding.

More reading

• Subreddit ASX Bets is gambling these 4 ASX shares will follow in GameStop’s footsteps

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The S&P/ASX 200 Index (ASX: XJO) ended its winning streak on Wednesday by dropping 0.85% to 6,714.1 points.

While a good number of shares dropped lower with the index, the worst performer by some distance was the Fortescue Metals Group Limited (ASX: FMG) share price.

The iron ore producer’s shares ended the day a disappointing 8% lower at $20.33.

Why did the Fortescue share price sink 8% on Wednesday?

Investors were selling Fortescue’s shares on Wednesday following a sharp decline in the iron ore price overnight.

According to CommSec, the spot iron ore price lost US$10.55 a tonne or 6.1% of its value to close the session at US$163.60 a tonne.

This didn’t just weigh on the Fortescue share price, it also hit the shares of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) hard as well. The BHP share price fell 3% and the Rio Tinto share price tumbled 5% today.

And spare a thought for the Australian share market’s latest IPO – Genmin Limited (ASX: GEN).

The West African-focused iron ore explorer and developer’s shares hit the ASX boards this afternoon after raising $30 million at a listing price of 34 cents per share. This gave it a market capitalisation of approximately $136 million.

The unfortunate timing led to the Genmin share price losing 13% of its value on its first day of trade.

Why did the iron ore price tumble?

Traders were selling the steel-making ingredient on Tuesday night after developments in China.

According to CommSec, authorities in the steel-making hub of Tangshan, China have imposed steel production restrictions to counter heavy air pollution.

This has sparked fears that demand could soften and the elevated prices that iron ore is commanding could come under pressure.

Given how most analysts are forecasting these strong prices to stick around for longer, investors appear nervous that earnings estimates for the miners could be downgraded if prices continue to slide.

More reading

• Why the Rio Tinto (ASX:RIO) share price is among the worst performers today
• Why Accent, Fortescue, Western Areas, & Zip shares are tumbling lower
• ASX 200 down 0.2%: Afterpay surges, gold miners jump, Fortescue sinks
• Is this a better way to buy into the ASX mining supercycle?
• SciDev (ASX:SDV) share price on watch after winning tender process with Fortescue (ASX:FMG)

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

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When you think of ASX listed wine shares, Treasury Wine Estates Ltd (ASX: TWE) is likely the first one to come to mind. And for good reason.

The iconic Aussie wine company has a market cap of more than $8 billion, with a portfolio of globally recognised names including the likes of Penfolds, Beringer, Lindemans and Wolf Blass.

But as you likely know, Treasury Wine has been struggling to diversify from its dependence on the Chinese market, following import restrictions from the Chinese government.

Which brings us to a lesser-known ASX wine share, Australian Vintage Ltd (ASX: AVG), with a market cap of $202 million. You may be familiar with the company’s McGuigan Wines brand.

Why this fundie likes Australian Vintage shares

Simon Mawhinney is contrarian fund manager Allan Gray Australia’s chief investment officer. According to the Australian Financial Review, Allan Gray owns 19.6% of Australian Vintages shares.

Why?

According to Mawhinney:

It’s always been our view that Australian Vintage’s earnings potential was much higher. It still trades at a hefty discount to its Net Tangible Assets and appears cheap to us, on a (price earnings) multiple of 10 times its most recent earnings guidance. It looks a lot cheaper than similar wine companies in Australia and elsewhere.

The AFR notes that Australian Vintage has run into some snags in past years, with grape-supply contract issues seeing the company enter the lower-profit margin bulk wine market.

But as Mawhinney points out, that’s no longer predominantly the case:

The company has spent a lot of energy exiting those significant, onerous grape contracts. The majority of its wine is now sold in some branded form. That should make its earnings less volatile and improve returns over time.

Australian Vintage share price snapshot

Without a doubt it’s been a good 12 months for Australian Vintage shareholders, with shares up 61% since 10 March last year. For comparison the All Ordinaries Index (ASX: XAO) is up 16% in that same time.

Year-to-date the Australian Vintage share price is up 25%. Based on the current price of 73 cents per share, Australian Vintage pays an annual dividend yield of 3.8%.

More reading

• ASX 200 down 0.2%: Afterpay surges, gold miners jump, Fortescue sinks
• Why the Treasury Wine (ASX:TWE) share price is jumping today
• ASX 200 rises, TWE jumps, Zip sinks
• Treasury Wine (ASX: TWE) share price shoots over 8% higher on takeover talks
• ASX 200 up 1.6%: Appen rebounds, ALS acquires Investiga, Woolworths upgraded

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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 Nine Entertainment Co Holdings Ltd (ASX: NEC) share price was relatively unmoved today after speculation emerged the company may purchase the WIN Corporation.

After edging slightly higher throughout the day, the Nine share price closed flat at $3.00 per share. In contrast, the S&P/ASX 200 Index finished the day down 0.84%.

Let’s take a closer look.

Nine wants a WIN

The Australian is reporting Nine Entertainment is in talks with WIN chair Bruce Gordon about absorbing his business into Australia’s largest publicly listed media company. WIN Corporation owns the WIN regional television network, Crawford publications, and several local radio stations.

It is reported Gordon sold his shares in Prime Media Group Limited (ASX: PRT) to the owners of Rural Press Ltd. That move coming, allegedly, as Gordon looks to focus his attention on a potential deal with Nine. The Australian also reported that Rural Press is looking to take over Prime Media.

The article claims Gordon will be paid in scrips (i.e. a promissory note for shares in Nine). The paper speculates the deal could be worth anywhere between $50 million to $100 million.

Gordon, through company Birketu Pty Ltd, already has a 15% stake in Nine Entertainment. The Australian claims any deal will likely see Gordon own enough shares to be elevated to the board. If this were the case, it would be yet another change to the revolving door of the Nine board.

If Nine were to purchase WIN, it would likely end its affiliation deal with Southern Cross Media Group Ltd (ASX: SXL).

Other news

As previously reported, Nine is in the process of replacing long-time CEO Hugh Marks. Marks, whose tenure ends at the end of the month, is being replaced by Mike Sneesby. Sneesby is the soon-to-be-former head of Stan Australia.

Nine has been delivering results to its investors. Channel Nine show Married at First Sight is currently the highest-rated program on Australian TV. On top of this, a Nielsen report from January, as reported by Mediaweek, listed nine.com.au, the Sydney Morning Herald, and The Age as the number 2, 5, and 8 most viewed news websites in Australia, respectively.

Nine Entertainment share price snapshot

Since its merger with Fairfax Holdings, the Nine company has been in its strongest position yet. The share price has increased 114.5% on this time last year. Just last week, the media conglomerate broke its 52-week share price record, twice!

Given its current valuation, Nine Entertainment has a market capitalisation of $5.1 billion.

More reading

• These 4 ASX shares just got upgraded to a ‘buy’ rating
• Why the Nine (ASX:NEC) share price is up 26% in 2021
• ASX 200 rises, Rio chair will leave, Nine gets a new CEO
• These ASX 200 shares are trading at near 52-week highs
• Why the Nine (ASX:NEC) share price hit another 52-week high

Motley Fool contributor Marc Sidarous 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 Piedmont Lithium Ltd (ASX: PLL) share price jumped 10% in today’s trade to close at 88 cents a share. 

The gain comes after this morning’s announcement about a change in substantial holdings.

Here’s a wrap of Piedmont’s latest release and what else has been happening in the lithium industry lately.

BNYMC beefs up holdings, Piedmont share price shoots

The Bank of New York Mellon Corporation (BNYMC) increased its Piedmont holdings by approximately 15 million shares.

This raises BNYMC’s voting power in the company to 62.99%.

The Piedmont Lithium share price was also on the move last week. The jump followed the company being granted court approval to pursue shareholder approval to redomicile from Australia to the United States.

Piedmont lists a number of benefits attached to the US move. Among them are lower compliance costs, acquisition opportunities, improved access to US capital markets, and a simplified corporate structure.

Australia’s first lithium hydroxide plant dukes it out

Meanwhile, the Australian Financial Review reports that the engineers of Australia’s first lithium hydroxide plant are still in court battling the Chinese entity Tianqi for roughly $39 million in fees.

MSP Engineering was appointed to build the plant for Tianqi, which is now selling part of its stake to IGO Ltd (ASX: IGO) prior to paying the engineers.

The move positions IGO amongst the predicted-to-be booming lithium industry in Western Australia. Speaking to AFR about supply and demand in the lithium market, IGO Managing Director Peter Bradford said:

With the underlying electric vehicle, clean energy thematic, the worst thing that can happen there is that the supply side is unable to meet demand and we actually slow down the roll-out of electric vehicles etc.

Piedmont share price snapshot

Piedmont Lithium focuses on the development of its 100% owned Piedmont Lithium Project in North Carolina, USA.

Over the past 6 months, the Piedmont share price blasted 872% higher.

More reading

• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• These were the worst performing ASX 200 shares last week
• Why these 3 ASX mining shares are crashing today
• ASX lithium shares to get price shock as commodities supercycle charges up
• These 2 ASX mining shares have gained over 8% this week

Motley Fool contributor Gretchen Kennedy 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 good news is that if you’re a fan of small cap shares, there are a number of companies at the small end of the market with the potential to grow materially in the future.

Two that investors might want to get better acquainted with are listed below. Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

The first small cap ASX share to look at is Adore Beauty. It is Australia’s leading online beauty retailer. Due to the tech selloff, the Adore Beauty share price is now trading materially lower than its IPO price of $6.75. This is despite the company smashing expectations during the first half of FY 2021 with strong sales and operating profit growth.

For the six months ended 31 December, Adore Beauty delivered revenue of $96.2 million and EBITDA of $5.2 million. This was up 85% and 188%, respectively, over the prior corresponding period. This result went down well with analysts at UBS. In response to its release, the broker put a buy rating with a $6.20 price target.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap ASX share to look at is Mach7. It is a medical imaging data management solutions provider.

Demand for its award-winning enterprise imaging platform has been growing strongly in recent years, leading to very strong annualised recurring revenue (ARR) growth.

For example, at end of the first half of FY 2021, Mach7 revealed that its ARR had grown to $10.2 million. This was up a sizeable 88% on the prior corresponding period. Another big positive is that its ARR now provides 64% coverage of its operating expenses. This means the company is well-placed to start making a profit in the near future.

Morgans is a fan of the company and appears to have been happy with its performance. In response to its results, the broker retained its add rating and lifted its price target to $1.68.

More reading

• 2 ASX shares at 52-week lows: Are they bargain buys?
• 2 very exciting small cap ASX shares to buy
• Top brokers name 3 ASX shares to buy next week
• ASX 200 rises 0.8%, A2 Milk sinks, Zip drops
• 2 exciting mid cap ASX shares to buy and hold

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 and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 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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The anticipated recovery in the real economy, vaccine rollout, and rising interest rates have seen a rapid rotation to cyclical sectors while beating up tech and growth-related ASX shares.

Here are 4 ASX shares that have been upgraded to a buy or equivalent rating on Wednesday. 

1. Carsales.com Ltd (ASX: CAR)

The Carsales share price has been far from inspiring this year but likely caught up in the recent tech-driven selloff. Morgan Stanley thinks that new car sales volumes have turned positive in 2021, which should lift the company’s revenue and bottom line. The broker rates the company as ‘overweight’ with a $23.00 share price target. This represents a 25% upside to its price at the time of writing. 

2. Nine Entertainment Co Holdings Ltd (ASX: NEC) 

The Nine share price has soared into record all-time highs thanks to its digital transformation and continued strength in traditional lines of businesses such as free-to-air television, publishing, and radio.

Morgan Stanley believes that there could be a cyclical rebound in the television advertising market, which could signal continued growth for Nine. The broker rates the company as overweight with a $3.42 target price. This represents a 13% upside to its current share price. 

3. Qantas Airways Limited (ASX: QAN) 

UBS is eyeing Qantas’ $1 billion cost reduction program and an improvement in domestic consumption as part of the company’s road to recovery in 2021. The broker thinks both of these factors are taking place, which could result in an operating leverage surprise. UBS rates the Qantas share price as a buy with a $6.20 price target. The current Qantas share price is sitting at $5.19.

4. Tyro Payments Ltd (ASX: TYR) 

The Tyro share price is in recovery mode after its terminal debacle earlier this year. Morgan Stanley has been paying attention to the volume of downloads for the company’s mobile app, which is recovering to levels before the terminal outage. The broker thinks that weekly app downloads are a useful indicator about Tyro’s merchant acquisitions, market share and penetration rate. 

The broker sees the recovery as a positive, rating the company as overweight with a $4.10 target price. Tyro shares are currently swapping hands for $3.23 apiece.

More reading

• Top brokers name 3 ASX shares to buy today
• IAG (ASX:IAG) share price could jump with this other ASX share after a broker upgrade
• Should ASX 200 investors be worried about inflation? Janet Yellen isn’t…
• Legal action against ex Qantas (ASX:QAN) executive leaves share price on watch
• Why the Nine (ASX:NEC) share price is up 26% in 2021

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. The Motley Fool Australia has recommended carsales.com 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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