It’s fairly safe to say that investors all over the world have been enjoying some pretty healthy gains from the sharemarket over the past 10 or so months. Since bottoming out in late March, both the S&P/ASX 200 Index (ASX: XJO) and the American S&P 500 Index (INDEXSP: .INX) have rallied convincingly. The US markets are even currently above the level they were sitting at before the coronavirus pandemic become obvious.

With such a surprisingly good year for investors, many are now turning to 2021 and hoping for at least ‘more of the same’.

However, one ASX fund manager isn’t too excited that those investors will get what they wish for.

Top ASX fundie weighs in

Hamish Douglass is the co-founder and chief investment officer of Magellan Financial Group Ltd (ASX: MFG). He is regarded as one of the best fund managers in the country. This is evidenced by Magellan’s current market capitalisation of $8.8 billion, with more than $100 billion in assets under management. Mr Douglass’ significant stake in Magellan makes him a billionaire. The size of Magellan is largely built on its consistent track record of performance. The company’s flagship Magellan Global Fund (ASX: MGF) has returned an average of 15.56% per annum over the past 10 years.

So Mr Douglass is evidently someone who many ASX investors pay attention to.

According to a report in the Australian Financial Review (AFR), Mr Douglass is a little worried about the current state of global markets. He suggests to the AFR that the gains that markets have experienced in the past few months are motivated by a dangerous “fear of missing out [FOMO]”, and that he feels that the majority of investor sentiment right now “remains worryingly bullish… which is out of step with the economic and scientific reality of the pandemic”.

He notes the “positive developments” and “‘best possible scenario’ outcome” of the recent success of several COVID-19 vaccination candidates. Together with the results of the recent US elections, this has been a “nirvana outcome” for investors. Even so, Douglass is still recommending caution:

This pandemic, which I would argue is still going on, is an issue of scientific complexity that the market seems to be somewhat oblivious of in terms of the risks still in front of us… We’ve been much more worried about downside protection than upside.

“We don’t bet big on vaccine trials”

The report notes that many of Magellan’s funds have not outperformed their benchmark indices over the past few months. Over the period, Magellan’s Global Equity Strategy held roughly 50% of its assets in cash at times. Also augmented by “very high-quality defensive equities”. That was deliberately opposed to holding “growth stocks”. However, Mr Douglass remains unapologetic, stating:

We’re never going to bet big on [vaccine trials]. When you have a bias built in to protect capital, you’re not going to participate in a very discretionary-led rally like this. You would expect us to lag a one in 50-year rally like this.

More reading

• Which ASX 200 shares have been slapped with price downgrades this week?
• Leading brokers name 3 ASX shares to sell today
• ASX 200 drops 0.9%
• What’s been happening with the Magellan (ASX:MFG) share price?
• 4 ASX shares with sturdy balance sheets

Motley Fool contributor Sebastian Bowen owns shares of Magellan High Conviction Trust. 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 Douugh Limited (ASX: DOU) share price remains suspended today as the company released a response to an ASX query regarding potential breaches of its recent acquisition of Goodments.

This is now the fourth week that shares in the tech minnow have been suspended. As such, the Douugh share price remains static at 17 cents.

Douugh offers response

Today is the second time this week that the fintech has responded to the ASX Ltd (ASX: ASX) query.

Douugh was asked for particular dates regarding the deal to acquire Goodments, and responded as follows:

On Wednesday, 21 October 2020, CEO Andy Taylor started discussions about a potential opportunity with Goodments. Discussions between the company and Goodments progressed over the course of November 2020 however negotiations remained incomplete during this period – terms of the transaction had not been put to the company’s board and not every aspect of the transaction had been confirmed.

With no final deal being reached, negotiations continued until 9 December when an agreement was reached between the companies. They signed a non-binding term sheet which included the indicative terms and provisions regarding the acquisition of Goodments business.

Following this, the Douugh claimed it complied by confirming the acquisition of Goodments with the ASX. This confirmation was received on 18 December.

Douugh maintains innocence

The company also said it has complied with the listing rules of the ASX, and in particular rule 3.1. This rule being that, “Once an entity is or becomes aware of any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities, the entity must immediately tell ASX that information.”

Douugh will now await the ASX’s response.

About the Douugh share price

Douugh describes itself as a ‘capital lite’ fintech, taking an articial intelligence (AI) first approach to disrupting banking. Through its app, the company aims to help users grow and manage their money to live a financially better life.

Listing in 2020, the company generated huge initial interest from investors, becoming one of the most traded stocks on the ASX at the time.

However, despite an early surge in the Douugh share price up to highs of 49 cents in October, shares in the troubled company currently sit at 17 cents.

More reading

• Does Xinja’s downfall mean neobanks are dead?
• Which ASX 200 shares have been slapped with price downgrades this week?
• Douugh (ASX:DOU) share price remains suspended after listing rule breaches were found
• Top brokers name 3 ASX shares to sell next week
• ASX 200 up 1.55%: ANZ & Westpac surge higher, Afterpay & Xero tumble

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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The Bigtincan Holdings Ltd (ASX: BTH) share price is edging higher today following the software company announcing its acquisition of US-based artificial intelligence company VoiceVibes .

In the opening minutes of trade, the Bigtincan share price reached an intraday high of $1.08. However, its shares have slightly retraced to $1.03, up 1.4% at the time of writing.

What was announced?

According to Bigtincan’s release, the company’s United States subsidiary, BTC Mobility, completed a stock purchase agreement with shareholders of VoiceVibes. The fulfilled arrangement saw BTC Mobility acquire 100% of the issued capital of VoiceVibes for US$2 million.

The purchase was made possible through Bigtincan tapping into its existing cash reserves. An institutional placement conducted in December set the company up to fund the acquisition.

Bigtincan advised it does not expect the recent takeover to have a material impact on its earnings for FY21.

Who is VoiceVibes?

Located in Baltimore, Maryland, the company specialises in voice analytics through use of artificial intelligence. The company’s automated coaching platform lets users make the best impression of themselves when speaking by receiving feedback called “vibes”.

Known to have one of the world’s largest data sets, VoiceVibes can measure human perception of voice. The proprietary technology is designed to understand how humans perceive emotion and intention from voice.

The technology is used by an array of organisations seeking to develop communications coaching, sales readiness, presentation skills practice, and interviewing.

When Bigtincan adds the VoiceVibes technology to its core sales enablement automation system, the company says it will be able to offer automated coaching and sales guidance to its customers.

What did management say?

Bigtincan co-founder and CEO Mr David Keane touched on the acquisition, saying:

VoiceVibes’ AI-powered coaching platform helps professionals make the best impression, every time they speak. By adding the patented VoiceVibes technology, Bigtincan expands our lead in AI for sales enablement and helps our customers train their sellers faster.

Adding to Mr Keane’s comments, VoiceVibes CEO Debra Cancro went on to say:

This is an exciting time for VoiceVibes. Joining forces with Bigtincan at this stage enables us to accelerate the application of our patented AI technology and provide cutting-edge insights into sales coaching and training.

Bigtincan share price snapshot

The Bigtincan share price is up almost 40% since this time last year, reflecting investor confidence in the company’s operations.

In March, its shares reached a low of 26.5 cents following COVID-19, before storming to a high of $1.60 in October.

More reading

• These ASX shares are growing at a rapid rate in FY 2021
• 2 small cap ASX shares growing at a rapid rate
• 2 explosive ASX tech shares to buy in January
• 2 growing mid cap ASX shares to buy
• 5 exciting small cap ASX shares to watch in 2021

Aaron Teboneras 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 BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN 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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Earlier today I looked at a few blue chip shares that offer generous dividend yields. You can read about those here.

Now, I thought I would turn my attention to blue chip shares which have strong growth potential. With that in mind, here are three blue chip growth shares to look at:

CSL Limited (ASX: CSL)

CSL is a leading biotechnology company which is home to the CSL Behring business and the Seqirus business. Combined, these two businesses have a portfolio of life-saving and lucrative therapies and vaccines which are generating billions of dollars in sales each year. From this, the company invests in the region of 10% to 11% of its sales back into research and development activities every year. This means it is on course to invest around US$1 billion into these activities this year.

Analysts at UBS are big fans of the company and note that its research and development pipeline is rich with potentially lucrative products that could drive strong growth in the future. The broker has a buy rating and $346.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another blue chip growth share to look at is ResMed. It is a medical device company with a focus on the sleep treatment market. Thanks to its industry-leading products, wide distribution, and successful acquisitions, ResMed has been growing at a very strong rate over the last few years. Pleasingly, thanks to its significant market opportunity and the growing prevalence of sleep disorders, it has been tipped to continue doing so for the foreseeable future.

Credit Suisse believes the company is well-placed for strong earnings growth over the medium term and has a buy rating and $31.00 price target on its shares.

SEEK Limited (ASX: SEK)

A final blue chip growth share to look at is SEEK. It is the dominant force in job listings in the ANZ market and has a number of international operations. This includes its Zhaopin business, which is one of the leaders in the massive China market. While FY 2020 was a difficult year because of the pandemic, SEEK is bouncing back strongly now the worst is over and hiring is ramping up.

Credit Suisse is also a fan of SEEK and has been impressed with its recovery from the pandemic. The broker has an outperform rating and $28.50 price target on its shares.

More reading

• Top brokers name 3 ASX shares to buy today
• 3 reasons why the Pushpay (ASX:PPH) share price could be a buy
• 3 fantastic ASX shares to buy today
• 3 ASX growth shares to buy right now
• 2 high quality blue chip ASX shares to buy now

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended ResMed Inc. and SEEK 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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Exchange-traded funds (ETFs) proved to be extremely popular investments in 2020. So popular in fact, that the all-time record for ETF inflows was broken twice last year. Take the month of October. It saw a record $2.3 billion flow into ASX ETFs, surpassing the $2.1 billion of the previous month.

But now that we’ve started a new year, which ETFs are primed for the challenges of 2021 and beyond? Here are 2 popular ETFs worthy of a closer look:

VanEck Vectors Wide Moat ETF (ASX: MOAT)

MOAT is a rather unique ASX ETF as it only holds a select group of US-listed shares – 49 on the latest update, to be precise. Amongst MOAT’s holdings, you will find famous names like Amazon.com Inc (NASDAQ: AMZN), Intel Corporation (NASDAQ: INTC), McDonald’s Corp (NYSE: MCD), Boeing Co (NYSE: BA) and Kellogg Company (NYSE: K).

What do MOAT’s holdings all have in common? Well, as you might guess, a moat. This ETF only holds companies that Morningstar have identified as possessing a ‘wide economic moat’, which is another way of saying ‘intrinsic, sustainable competitive advantage’. That might be a powerful brand, like with Kellogg or McDonald’s, or being able to offer lower prices than competitors, as Amazon can.

These are the kinds of businesses that Warren Buffett famously loves, and for good reason. Over the past 5 years, MOAT has averaged a return of 16.58% per annum.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

A second ETF to look at today is this fund from BetaShares. ASIA aims to hold 50 of the largest technological disrupters from Asia (excluding Japan). We’re all familiar with the big US tech companies like Amazon and the success they have shared with their investors. But, whilst these companies are dominant in many parts of the world, they are arguably not so big in Asia. China, for instance, doesn’t even allow many of these companies access to their market at all. And that’s where ASIA comes in.

Its largest holdings include giants like Tencent Holdings, Alibaba and Samsung Electronics. All of these companies are dominant in Asia, and many (like Samsung) have a global presence as well. As such, this ETF can be a way to diversify in the tech space beyond the FAANG stocks like Amazon.

ASIA has returned an average of 22.54% per annum since its inception in September 2018, including a 62.01% return for the past year alone.

More reading

• US decides against delisting Tencent and other Chinese giants
• 3 quality ETFs for ASX investors to buy today
• Got money to invest? Here are 3 ASX shares to buy
• 2 quality ETFs for ASX investors in January
• 3 great ASX tech shares to buy

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Boeing, Intel, Kellogg, McDonalds, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Intel and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Amazon and VanEck Vectors Morningstar Wide Moat 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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Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Audinate Group Ltd (ASX: AD8)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted their price target on this professional audio-visual media networking solutions provider’s shares to $9.00. The broker made the move following the release of Audinate’s second quarter update. It was pleased with its performance given the headwinds it is facing and believes it has a long runway for growth in the future. The Audinate share price is trading at $8.07 on Friday.

National Australia Bank Ltd (ASX: NAB)

Another note out of Morgan Stanley reveals that its analysts have retained their outperform rating and lifted their price target on this banking giant’s shares to $26.00. Its analysts believe the banking sector’s outlook is improving and expect the market to begin to price in a recovery in earnings and dividends as the year progresses. It then suspects the banks could look at capital management initiatives in 2022 given the excess capital they built up during the pandemic. The broker is forecasting an 88 cents per share dividend in FY 2021 and a $1.06 per share dividend next year. NAB’s shares are changing hands for $24.26 this afternoon.

Rio Tinto Limited (ASX: RIO)

Analysts at Macquarie have retained their outperform rating and $127.00 price target on this mining giant’s shares. This follows news that Rio Tinto has secured a revised electricity agreement at the New Zealand Aluminium Smelter. Outside this, the broker sees upside risks to its short term earnings forecasts due to sky high spot iron ore prices. The Rio Tinto share price is trading at $120.69.

More reading

• This broker calls ANZ (ASX:ANZ) shares as the preferred bank pick
• This ASX 200 stock is tipped to lift dividends by 87% this year
• 5 things to watch on the ASX 200 on Friday
• Why this broker likes ANZ (ASX:ANZ), NAB (ASX:NAB), and Westpac (ASX:WBC)
• Does Xinja’s downfall mean neobanks are dead?

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 AUDINATEGL FPO. The Motley Fool Australia has recommended AUDINATEGL 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 Chalice Mining Ltd (ASX: CHN) share price has taken a slight knock and enters the red today. Shares are trading sideways after the company announced the upsizing of its share purchase plan, as a result of it being heavily oversubscribed.

Details of the upsizing

Chalice cited strong support from eligible shareholders in the share purchase plan (SPP). This has led to a substantially oversubscribed SPP. Reportedly, more than 2,300 applications were received to take part. The resulting value totals $47 million worth of shares at the issuant price of $3.75.

This comes after Chalice recently successfully completed the institutional portion of the placement on 8 December, raising $100 million.

The board of directors, under their discretion, decided to increase the SPP to approximately $15 million, up from the previously allotted $10 million.

The SPP increase will directly lead to an increase in shares issued, bringing the total to 4 million. With the increase in the SPP, the dilution of Chalice shares now will be close to 1.2%.

Due to the oversubscription, the company also will need to scale-back valid applications. This will result in eligible shareholders being allocated approximately 34% of the shares that they applied for.

Chalice Mining also specified that the SPP shares are anticipated to be issue on 21 January, with trading to become available on them from Friday, 22 January.

Chalice managing director Alex Dorsch commented:

In light of the strong response, the board made the decision to upsize the SPP by 50%, after taking into consideration our capital requirements. The combined proceeds of the recent placement and this SPP will ensure Chalice remains financially strong well into the future, with the ability to rapidly advance Julimar to the feasibility stage.

What are the proceeds for?

The funds raised from the placement will be going towards Chalice Mining’s Julimar discovery. Originally intersected on 23 March 2020, with the finding of high-grade nickel-copper-palladium sulphide, the discovery has continued to expand.

This new funding will enable Chalice to accelerate exploration and development activities, as well as provide general working capital.

In the letter of offer to eligible shareholders, Chalice specified that the placement would provide a 2-year runway to support the activities, including drill programs, scoping, and pre-feasibility studies.

Chalice share price recap

The Chalice Mining share price has returned a monster 1334% in the last year. For much early 2020, you could get shares in this mining company for less than 30 cents.

At the time of writing, the Chalice Mining share price is $4.29, giving it a market capitalisation of $1.47 billion.

More reading

• Here’s what 1 broker thinks about the Chalice (ASX:CHN) share price
• Which 2 ASX shares have rocketed up more than 200% in 6 months?
• Why the Chalice Mining (ASX:CHN) share price is surging 11% higher today
• Here are the best All Ordinaries performers of 2020

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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Our market continues to build on gains for 2021 and those looking for new buying opportunities will want to read on.

Brokers have initiated research coverage on two new ASX stocks that have recently hit the bourse.

The Ansarada Group Ltd (ASX: AND) share price is the latest “buy” rated stock from Moelis Australia. The investment bank started covering the governance platform provider following its reverse takeover of The Doc Yard Ltd (ASX: TDY).

The latest high-growth ASX IT stock to buy

The cloud-based platform allows companies to securely share sensitive documents, such as for board meetings, takeovers and audits.

This means the AND share price should benefit from the expected rebound in mergers and acquisitions (M&As) in 2021.

If you believe that high-growth tech stocks will keep delivering this year, then Ansarada might be a good one for your watchlist.

Multiple catalysts to drive the Ansarada share price

There are other reasons why Moelis likes the stock. This includes good subscription growth potential and expected positive earnings before interest, tax, depreciation and amortisation (EBITDA) this financial year.

“Overall, we expect AND to benefit from the global trend of increased regulation on security and data management and exhibit strong growth over CY21 as M&A markets recover and revenue diversifies across new & enhanced platform use cases,” said Moelis.

Moelis’ 12-month price target on the stock is $1.83 a share.

Better than forecasts growth

Another new entry to the ASX that is worth watching is the Liberty Financial Group Pty Ltd (ASX: LFG) share price.

The analysts at Macquarie Group Ltd (ASX: MQG) initiated coverage on the recently listed financial services group with an “outperform” recommendation.

“Better-than-expected margins, book growth and asset quality vs Prospectus assumptions should support earnings ~15% above Prospectus NPATA, in our view,” said the broker.

“Liberty is benefiting from wider-than-anticipated net interest margins, with BBSW (1mth) ~9bps below the RBA cash rate vs a long-term ~20bps premium.”

Winning by a big margin

A modest 10 basis point (0.1 percentage point) change in margins will have a 6.3 percentage point impact on net profit before amortisation of acquired intangible assets (NPATA).

“Liberty should remain a leader in the non-bank sector, with its industry position supported by well-developed capital management capability, high level of funding stability and cost efficiency,” added Macquarie.

“Interestingly, Liberty is the only Australian non-bank finance company with a public investment-grade issuer rating.”

The broker’s 12-month price target on the LFG share price is $8.27 a share.

More reading

• This ASX sector is facing a tough 2021
• Leading broker names the ASX bank shares to buy in 2021
• Bell Potter names the ASX shares to buy in 2021
• These are the latest 2021 ASX “buy” ideas from top brokers
• Why the Chesser (ASX:CHZ) share price is climbing higher today

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie 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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Worley Ltd (ASX: WOR) shares are dipping lower today, despite the company winning a new contract.

During early afternoon trade, the global engineering company’s shares are down 0.5% at $12.74. The Worley share price did reach positive territory earlier on, recording an intraday high of $12.98.

What did Worley announce?

The Worley share price has been see-sawing today after investors appear mixed on the company’s latest release.

In its announcement, Worley advised that it has been awarded a contract from Schering-Plough Animal Health Limited, also known as MSD Animal Health.

MSD Animal Health is a division within the 125-year-old global pharmaceutical company, MSD. The former which provides veterinary services and digital solutions such as identification and monitoring technologies.

Terms of the deal

Under the contract, Worley will deliver procurement and construction services to upgrade the animal vaccine plant in Upper Hutt, New Zealand.

The project is expected to be completed over a 4-year period, in which Worley’s New Zealand team will take charge.

No further details were provided by Worley in terms of revenue generation and any related provisions.

Words from the CEO

Worley CEO Chris Ashton, welcomed the partnership, saying:

As a global professional services company headquartered in Australia, we are excited to be involved in this project with MSD Animal Health in New Zealand. It is a natural extension to the diverse professional and field services we offer to complex chemical and processing industries around the world.

How has the Worley share price performed?

Since its March lows last year, the Worley share price has gradually gained traction to come within sights of its pre-COVID highs.

While this time last year, its shares were hovering around the $16 mark, Worley has been making gains. From November, the company’s shares have risen more than 30%, reflecting positive investor sentiment.

If the Worley share price can climb another 20%, its shares will be where they started in the beginning of 2020.

Based on the current share price, Worley commands a market capitalisation of $6.6 billion.

More reading

• Why the Worley (ASX:WOR) share price is edging higher
• ASX 200 drops 1.1%

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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Just over 2 weeks into the new year and we’ve already got ourselves some fresh IPOs, one of the first being the Singular Health IPO. The company opened its initial public offering on 4 January in an effort to raise $6 million at a price of 20 cents per share. The placement implies a market capitalisation of nearly $20.5 million, as detailed in the company’s prospectus. 

The offer has since closed early due to significant demand. Setting the stage for another ASX listed medical imaging technology company.

What is the Singular Health IPO bringing to the table?

2D, or not 2D, that is the question

Rather than the traditional 2D medical images that are still popular to this day (CT and MRI), Singular Health’s technology produces viewable 3D objects from its 2D counterparts. This is made possible by the group’s proprietary volumetric rendering platform.

The technology, enabled by the MedVR software, allows immersive viewing through the use of virtual reality. This software is currently a TGA IVD Medical Class 1 Software and is listed on the Australian Register of Therapeutic Goods.

MedVR has already been commercialised and is generating revenue, albeit $22,609 unaudited for the 2020/2021 financial year to date. The software is currently used by medical practitioners, medical students, hospitals, and universities; both locally and abroad.

Revenue is expected to be generated predominantly through a Software-as-a-Service (SaaS) model. For the VR related products, the company will also make one-off revenue through reselling and installing MedVR compatible virtual reality hardware.

The medical imaging landscape

With Singular Health gearing for official quotation to the ASX on 4 February, the microcap will be joining giants at its sides. Most notably, the long time listed healthcare imaging software provider, Pro Medicus Ltd (ASX: PME). As well as, the not so long-listed, small-cap, XV Technology developer, 4DMedical Ltd (ASX: 4DX).

Firstly, the Pro Medicus share price has returned 43.1% in the last 12 months. The $3.3 billion company has built out a suite of cloud-based medical imaging software products. These cover the imaging organisation process, communication between radiographer and radiologist, and viewing of images even on mobile devices.

Pro Medicus has also recently benefitted from a slew of new contracts in recent months. The biggest being announced yesterday, a A$40 million, 7 year contract with Intermountain Healthcare to provide Pro Medicus’ Visage software across more than 200 clinics.

Singular Health’s offering is differentiated from Pro Medicus, given that the Visage software is focused on the handling of medical imaging, whatever form that may take. Whereas, Singular Health wants to produce 3D interactive scans that are distributed through its own software.

Secondly, the 4DMedical share price has returned 43.4% since listing just over 5 months ago. 4DMedical’s secret sauce is its proprietary XV Technology. This is used to convert sequences of X-ray images into ‘four-dimensional’ quantitative data. The company utilises this process to assess lung function by using existing clinic equipment through its cloud-based SaaS offering.

4DMedical successfully obtained TGA approval for its XV lung ventilation analysis software on 30 September 2020, reportedly 6 months ahead of schedule. Although, despite its $409.82 million market capitalisation, 4DMedical reported $1.23 million in sales revenue for FY20.

Foolish takeaway

Timely detection is crucial in most cases where medical imaging is employed. Appropriate imaging distribution, interaction, and presentation is critical. In that case, it is phenomenal that we have innovation in this space right on our doorstep.

With the addition of Singular Health, it appears we have the 2D, 3D, and 4D listed trio in medical imaging. Whether the Singular Health Group’s debut will resonate with the market, or not, is in the hands of the IPO gods.

Longer-term, it will be interesting to see if VR in the health space gains traction.

More reading

• Pro Medicus (ASX:PME) share price hits record high: Is it too late to invest?
• Why Afterpay, BHP, Objective, & Pro Medicus shares are charging higher
• ASX 200 rises 0.4%
• ASX 200 up 0.3%: Afterpay surges, Pro Medicus rockets on $40m contract, Whitehaven rises
• Why Afterpay, Australian Ethical, Pro Medicus, & Sezzle shares are charging higher

Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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