• The AGL (ASX:AGL) share price just hit a 12-year low

    Boxer falls down in the ring, indicating a share price performance low

    Things just keep going from bad to worse for the AGL Energy Ltd (ASX: AGL) share price. Today, AGL shares have hit a 12-year low after opening at $11.94 a share and sinking as low as $11.87 soon after.

    That is the lowest share price AGL has seen since the depths of the global financial crisis back in 2008, almost 13 years ago. The shares have recovered slightly since this morning and are currently swapping hands for $12.07 a share.

    It’s been a stunning fall from grace for AGL, one of the ASX’s largest energy retailers. The company last peaked back in 2017 with a share price of close to $28. That means that, with the current share price of $12.08 and a market capitalisation of just $7.53 billion, shareholders have lost more than 56% of their equity in just 3½ years.

    It is strange to think that almost every investor who has picked up AGL shares in the past 12 years and has held them is sitting on a capital loss today.

    Dividend to the rescue?

    There’s always the dividend though, of course. On current pricing, this dividend is worth a whopping 8.11% per annum. That does look enticing given the current near-zero interest rate environment. Especially so, given AGL told investors last year it would commit to paying out 100% of its earnings as dividends until 2023 (up from the previous target of 75%).

    That doesn’t guarantee that the payouts will grow or even be held steady over the next 3 years, mind you. But it does indicate shareholders will be receiving a hefty income stream all the same. Unfortunately for investors though, those dividends will be coming in without franking credits attached, at least until 2023. AGL stated that this was due to the company’s plans to utilise historical tax losses in FY2021 and FY2022.

    AGL gives shareholders a blackout

    Even so, even this dividend quasi-certainty hasn’t stopped AGL’s downwards spiral. Since this declaration was made back in August, AGL shares are down almost 30%. So why is this happening? Well, the 22% drop in profits that AGL announced back then certainly wouldn’t have helped. But analysts have also been giving AGL the cold shoulder.

    My Fool colleague James Mickleboro reported this morning that a note out of Credit Suisse indicated that the broker retained its underperform rating for AGL. It has also slashed its price target to just $11.10 a share. Credit Suisse cited an expected decline in wholesale electricity prices over the next few years as the primary reason for the downgrade.

    If that expectation comes to pass, it doesn’t look like things will get any better for AGL’s long-suffering shareholders anytime soon.

    This Tiny ASX Stock Could Be the Next Afterpay

    One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…

    Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.

    Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!

    Returns as of 6th October 2020

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

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  • ASX energy shares exploded today. Too late to buy?

    man holding up barrel of oil against rising chart representing rising oil search share price

    The S&P/ASX 200 Index (ASX: XJO) is having one of those whipsawing kind of days. At the time of writing, the index is essentially flat, up a rather insignificant 0.11% to 6,686 points, despite having dropped around 0.3% around lunchtime.

    But one sector is not sharing in this commitment to neutrality. ASX energy shares are on fire today, and are dominating the ASX 200 best performers list.

    Oil Search Ltd (ASX: OSH) is leading the charge – its shares are up a healthy 6.70% at the time of writing to $4.46 a share. The ASX’s biggest energy company – Woodside Petroleum Limited (ASX: WPL) – is also basking in the light of a 5.49% rise to $26.71 a share. Beach Energy Ltd (ASX: BPT) is up 4.69% to $2.01 a share.

    So why this strident outperformance today? Well, there’s a couple of reasons we might be seeing this trend.

    Black gold once more

    The first, and most likely factor, is the price of crude oil itself. According to Bloomberg, the price of Brent crude oil is currently trading above US$57 a barrel. Around the start of the year, it was fetching roughly US$51 a barrel, meaning that we have seen a significant spike of approximately 12% in just a few days. Since oil companies’ costs of extracting a barrel of oil out of the ground are relatively fixed, rises like this tend to flow straight to these companies’ bottom lines.

    Remember, these energy companies are also coming off of some very low bases. Take Oil Search. It was fetching almost $8 a share this time last year. But when the coronavirus pandemic hit, Oil Search shares plunged to levels unseen for 15 years. Even after today’s hefty rise, the Oil Search share price remains more than 40% lower than 12 months ago. We see similar patterns for the other energy shares like Woodside.

    Energy companies are highly cyclical, and these moves prove it. Anyone who managed to correctly time these moves would have benefitted enormously though. Although Oil Search remains well-down from the highs we’ve just discussed, it’s also up around 144% since 23 March last year.

    Another possible reason behind this stellar performance from the energy sector today is the increasing bullishness of investors with regard to the global economy. Earlier today, we discussed how some commentators are expecting a fantastic year in 2021 in terms of global growth, including a projection that the US economy is set to grow by 5.9% in 2021. We also discussed how this could lead to inflationary pressures. Energy prices (and companies) tend to perform well in an environment of global growth, and even better in an inflationary one. It’s possible that some investors are pricing these scenarios in as well.

    Is it too late to buy into ASX energy shares?

    With gains like these, some investors might be wondering if it’s too late to get a piece of the action. Well, one broker doesn’t think so. Goldman Sachs currently has ‘buy’ ratings on both Oil Search and Woodside, with price targets of $5.55 and $31 a share, respectively. 

    This Tiny ASX Stock Could Be the Next Afterpay

    One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…

    Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.

    Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!

    Returns as of 6th October 2020

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

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  • Fund managers are buying Domino’s (ASX:DMP) and this ASX share

    ASX buy

    I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

    Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

    Bravura Solutions Ltd (ASX: BVS)

    According to a change of interests of substantial holder notice, Mawer Investment Management has been taking advantage of weakness in the Bravura share price to top up its position.

    The release confirms that Mawer has added approximately 4.5 million more shares to its holding since its last update at the end of November.

    This means the fund manager now owns just under 25.5 million Bravura shares, which represents a 10.31% stake in the company.

    With the Bravura share price currently trading 51% lower than its 52-week high, it appears as though this fund manager believes its shares are in the bargain bin. Bravura’s shares have been sold off in recent months due to its disappointing guidance for FY 2021. Its performance has been impacted by Brexit and COVID headwinds.

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    Another change of interests of substantial holder notice reveals that Pinnacle Investment Management Group Ltd (ASX: PNI) has been buying this pizza chain operator’s shares.

    According to the notice, over the last few months Pinnacle has increased its holding in Domino’s by ~900,000 shares to a total of just under 7.3 million. This represents an interest of 8.43%.

    Pinnacle’s most recent purchases came on 4 January when it picked up 37,453 shares for a total consideration of $3,296,643. This equates to an average of $88.02 per share.

    So, with the Domino’s share price trading at $82.72 a little over one week later, investors could be buying shares at a 6% discount to what the fund manager paid.

    One broker that thinks Domino’s shares are in the buy zone is Bell Potter. This week it put a buy rating and $99.30 price target on its shares.

    Where to invest $1,000 right now

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

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

    *Returns as of June 30th

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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 BHP (ASX:BHP) share price is Goldman Sach’s top pick for iron ore

    A happy miner tips his hard hat, indicating good ashare price results for ASX mining stocks

    What a year 2020 was for iron ore. The steel-making metal soared to a 7-year high while ASX iron ore miners delivered market leading returns on improved profitability and record dividends

    The Goldman Sachs commodities team is bullish on commodities and iron ore in 2021. Its 2021 sector outlook and themes report released on Wednesday points to recovering global demand, low inventories and supply constraints and a weakening US dollar to support commodity prices.

    In this report, the BHP Group Ltd (ASX: BHP) share price has emerged as the broker’s top iron ore pick. 

    Bullish but valuations are fair

    Despite the bullish sentiment for commodities and iron ore, Goldman views the sector as ‘fairly valued based on a discounted cash flow (DCF) basis’. 

    As a result, other ASX iron ore miners such as Rio Tinto Ltd (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) received neutral ratings after both companies soared in 2020 and early 2021. 

    Goldman rates BHP share price as a buy 

    BHP has emerged as the preferred pick based on valuation, commodity mix, better operating performance and more compelling medium to long-term production growth. 

    Goldman raised its BHP share price target to $48.70 with a buy rating. This represents an upside of around 5%, and does not include its current dividend yield of 4.50%. 

    The broker says that “BHP’s portfolio is in a very strong position” and forecasts a “circa 65% increase in EBITDA and doubling of free cash flow (FCF) in FY21”.

    The company’s strong financial performance will be underpinned by a fall in capex to US$7 billion as major minerals projects are completed, but also driven by positive copper prices and a recovery in met coal and oil prices in CY21. 

    The report does flag BHP’s softer December quarter due to production disruptions across copper, iron ore and oil. However, points to improved production moving forward with higher copper production, improved coal demand and oil acquisitions being finalised. 

    Long term, the broker is positive on BHP’s organic growth options, particularly in oil where it sees a possible 50% growth in volume to +150 million barrels of oil equivalent (MMboe).

    At the time of writing, the BHP share price is trading up 0.41% at $46.19.

    Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

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

    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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    Motley Fool contributor Lina Lim 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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  • 2 exciting ASX tech shares to buy today

    rise in asx tech share price represented by digitised rocket shooting out of person's hand

    If you’re currently searching for a couple of tech shares to add to your portfolio, then you could do a lot worse than the ones listed below.

    Here’s why these ASX tech shares come highly rated right now:

    Afterpay Ltd (ASX: APT)

    Afterpay is a payments company that has been growing at a rapid rate over the last few years. This has been driven by the growing popularity of the buy now pay later payment method with consumers and retailers and its successful international expansion.

    Pleasingly, this strong growth has accelerated in FY 2021 thanks to the shift to online shopping because of the pandemic.

    Analysts at Bell Potter believe this strong form can continue. They expect this to be underpinned by a significant pipeline of catalysts including further integration with key ecommerce and payment infrastructure players, strong growth in customers and underlying sales in the US and UK, and its healthy net transaction margin.

    Bell Potter has a buy rating and $140.00 price target on the company’s shares. This compares to the latest Afterpay share price of $110.12.

    Nearmap Ltd (ASX: NEA)

    Nearmap is an aerial imagery technology and location data company. It has been growing at a strong rate over the last few years thanks to increasing demand for its services in the ANZ and North American markets. And while the pandemic appears to be stifling its growth somewhat, management remains very positive on the future.

    Thanks to geographic expansions, new growth initiatives, and the quality of its offering, particularly its new AI product, management believes the company is well-positioned for growth in the future.

    It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

    Morgan Stanley is positive on the company’s future. The broker has an overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.13.

    Where to invest $1,000 right now

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

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

    *Returns as of June 30th

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nearmap 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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  • 3 quality ETFs for ASX investors to buy today

    Wooden blocks depicting letters ETF, ASX ETF

    Exchange traded funds (ETFs) can be a great way to balance out your portfolio.

    This is because ETFs give investors easy access to a large number and diverse range of shares that you wouldn’t usually have access to.

    Due to their growing popularity with investors, there are an increasing number of ETFs to choose from.

    To narrow things down, I have picked out three ETFs that could be worth a closer look:

    BetaShares Global Cybersecurity ETF (ASX: HACK)

    The first ETF to look at is the BetaShares Global Cybersecurity ETF. It aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector. This is a rapidly growing area of the market which BetaShares notes is heavily under-represented on the ASX. Included in the fund are companies such as Cloudflare, Crowdstrike, and Okta. 

    VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

    Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund gives investors a slice of 48 US-based stocks which have sustainable competitive advantages. Among the ETF’s holdings you will find blue chips such as Amazon, American Express, Boeing, Coca-Cola, Microsoft, Pfizer, and Yum! Brands. Over the last five years the ETF has outperformed the ASX 200 index materially.

    BetaShares NASDAQ 100 ETF (ASX: NDQ)

    A final ETF to look at is the BetaShares NASDAQ 100 ETF. This ETF gives investors exposure to 100 of the largest non-financial companies on the Nasdaq index. Given the favourable long term outlooks for the majority of these companies, the Nasdaq 100 index has been tipped to continue outperforming the ASX 200 over the long term. Investing in this ETF will mean you are buying a slice of companies such as Apple, Facebook, Microsoft, Netflix, and Tesla, to name just five.

    Where to invest $1,000 right now

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

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

    *Returns as of June 30th

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS 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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  • New tech IPO Felix (ASX:FLX) jumps 24% higher

    tech asx shares represented by two hands pointing at array of digital icons

    After a disappointing start to life on the ASX boards on Tuesday, things are looking a lot more positive for the Felix Group Holdings Limited (ASX: FLX) share price today.

    At one stage the construction-focused cloud-based enterprise software-as-a-service marketplace platform provider’s shares were up as much as 24% to 43.5 cents.

    This compares to a decline of almost 3% for the Felix share price after completing its initial public offering (IPO) yesterday.

    What is Felix?

    Felix provides a cloud-based enterprise software-as-a-service marketplace platform for the commercial construction and related industries.

    It connects contractors and their third-party vendors, automating and streamlining a range of critical procurement-related business processes.

    According to its prospectus, the company launched its online Vendor Marketplace in 2013. Since then it has grown to become a leading marketplace for the Australian commercial construction sector, used by contractors to source vendors and vendors to source new business leads.

    Felix’s enterprise customers include tier one Australian contractors and multinational commercial construction companies. Management also notes that the Felix platform is gaining traction in other sectors, with cornerstone customers secured in the government, utilities, mining and resources, and facilities management sectors.

    As of the end of September, Felix’s enterprise customer base had grown to 39,398 vendors. Over 800 of these vendors are located in 42 countries outside Australia, Management advised that this has occurred organically as a result of contractors using Felix on international projects.

    Due to the stickiness of the product, the company enjoys high retention rates for its recurring revenues.

    Felix’s Chairman, Michael Bushby, explained: “Once adopted by Contractors, the Felix platform typically becomes a core part of and deeply embedded within a Contractor’s operations, making it difficult to replace. This has led to an approximate 99% retention rate for contracted ARR.”

    In FY 2020 the company reported sales revenue of $3.7 million and a net loss of $7.2 million. This is still only a very small slice of a global total addressable market estimated to be worth $7.2 billion in 2020.

    The Felix IPO.

    On Tuesday the company’s shares landed on the ASX boards after raising $12 million at 36 cents per new share.

    The proceeds from the IPO are going to be used to accelerate sector and geographic expansion, platform development, and the release of new modules.

    With 131.6 million shares on issue, Felix’s market capitalisation now stands at approximately $57.2 million.

    This Tiny ASX Stock Could Be the Next Afterpay

    One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…

    Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.

    Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!

    Returns as of 6th October 2020

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    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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  • With retail sales numbers rising, how are these 3 ASX shares performing?

    asx retail shares represented by woman excitedly holding shopping bags

    Retail sales are a good indicator for how the economy is moving along. If people are spending money, that means that they must be making money. Retail sales also offer a tangible indication of consumer spending as a whole, which is an important part of any country’s gross domestic product (GDP).

    November retail sales soared 7.1% month-to-month according to Monday’s retail trade report released by the Australian Bureau of Statistics (ABS). Year-over-year, retail sales posted a massive 13.3% gain.

    Let’s take a look at some ASX retail players and see how they’ve been faring. 

    Wesfarmers Ltd (ASX: WES)

    With a market cap of $58.3 billion, Wesfarmers is the biggest player in the retail space on the ASX. The Wesfarmers share price has jumped higher than 17% over the past 12-month period. In fact, just last week the Wesfarmers share price hit a record all-time high. This is quite the contrast to the March price following the coronavirus lock downs. At its lowest point, the Wesfarmers share price sank to around $30. 

    At the time of writing this, the company’s share price is $51.05.

    Harvey Norman Holdings Limited (ASX: HVN)

    Harvey Norman also tore into 2021 touching a multi-year high earlier this month. Back in November, the company announced that its aggregated sales revenue for the 1 July 2020 to 21 November 2020 period was up 28.2%. This nice spike includes gains experienced across stores operating in New Zealand, Slovenia, Croatia, Ireland, Northern Ireland, Singapore and Malaysia.

    Notably, Australian franchise sales jumped 29.7% during this time period regardless of operating disruptions caused by COVID. Over the past month, the Harvey Norman share price has zoomed 9.43% higher. This is a testament to the numbers revealed in the ABS retail report, with the sale of electrical goods rocketing up 23.4%.

    The Harvey Norman share price is presently trading around $5.17.

    Kathmandu Holdings (ASX: KMD)

    Unfortunately, not all retail shares have been able to make a flashy comeback following COVID’s initial thrashing last year. The Kathmandu share price has taken a 12-month beating of over 47%. After reaching a high of around $2.47 in February 2020, the company tumbled down to trade at 48 cents by the end of March 2020 and is still slowly clawing its way back up. 

    The Kathmandu share price is $1.20 at the moment. According to the retail report, November clothing sales experienced a 27.4% gain month-to-month. Kathmandu shares bumped up 7.4% over the same timeframe.

    Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

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

    In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

    *Returns as of 6/8/2020

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    Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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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  • These small cap ASX shares have huge growth opportunities

    wooden blocks with percentage signs being built into towers of increasing height

    At the small end of the Australian share market, there are a number of companies 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 these small caps:

    Pointerra Ltd (ASX: 3DP)

    The first small cap share to look closer at is Pointerra. It is a growing technology company with a focus on the commercialisation of 3D geospatial data.

    Pointerra’s technology solves the entrenched problems that are associated with digital asset management workflows and allows very large 3D datasets to be managed and analysed without the need for expensive and time-consuming high-performance computing.

    The 3D data is processed and stored in the cloud by Pointerra for instant, on demand user access, anytime, anywhere, on any device. The company notes that this provides actionable 3D information to power digital asset management solutions across a range of sectors.

    Demand has been growing for its services, leading to Pointerra reporting an 18% month on month increase in its annual contract value (ACV) to US$5.82 million in November. This is scratching at the surface of a market opportunity that management estimates is worth a staggering $500 billion.

    Whispir Ltd (ASX: WSP)

    Another small cap to watch is Whispir. It is a growing software-as-a-service communications workflow platform provider which automates communications between businesses and their workers and customers.

    This allows users to improve their communications through automated workflows that ensure stakeholders receive accurate, timely, useful, and actionable insights.

    Whispir was a very strong performer in FY 2020. For the 12 months ended 30 June 2020, it recorded a 25.5% increase in revenue to $39.1 million and ARR growth of 34% to $42.2 million. This strong form has continued in the first quarter of FY 2021, with its ARR lifting to $43.7 million.

    As with Pointerra, this is still only a very small slice of its market opportunity. Management estimates that the Workflow Communications platform as a Service market could reach US$8 billion per year by 2024.

    Where to invest $1,000 right now

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

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

    *Returns as of June 30th

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointerra Limited. The Motley Fool Australia has recommended Pointerra Limited and Whispir 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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  • Why the Splitit (ASX:SPT) share price is climbing higher again

    the words buy now pay later on digital screen, afterpay share price

    The Splitit Ltd (ASX: SPT) share price is pushing higher again on Wednesday.

    In afternoon trade, the buy now pay later provider’s shares are up 1.5% to $1.40.

    Why is the Splitit share price pushing higher?

    Investors have been buying the company’s shares on Wednesday after it provided a bit more colour on its deal with Google in Japan.

    In case you missed it, on Monday Splitit revealed that Google customers will be able to use instalment plans to make purchases from the Google Store in Japan. This is the first time this payment method has been an option to its customers.

    In the coming weeks, customers purchasing Google’s new 5G phone, the Pixel 5, or Nest devices from the Google Store, will be able to split their payments into equal monthly instalments.

    Splitit’s CEO, Brad Paterson, commented: “This is one of the strongest case studies yet of our unique offering. We are working with Google in its effort to provide the best possible experience for its customers, and the seamless integration of Splitit into Google Store Japan means they never have to leave the platform.”

    What did Splitit announce today?

    This morning the company clarified a few details, advising that its agreement with Google Japan is for an initial 12 month term.

    This will then be automatically renewed unless either party gives notice to terminate at least 180 days before the expiry of the then-current term, or the agreement is otherwise terminated for cause or insolvency.

    It also spoke about the impact the deal could have on the company and its brand image in the country.

    Management explained: “As noted in the Announcement, at this point in time, the economic materiality of the Agreement with Google is unknown due to the variable nature of revenues which are dependent on customer uptake of specific products. Splitit, however, expects that partnering with Google in Japan may have a material impact on Splitit’s brand and business development prospects.”

    The latter appears to have gone down well with investors today. They may be hoping that this leads to other deals in a country where an estimated 68% of adults have a credit card.

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    Returns as of 6th October 2020

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    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.

    The post Why the Splitit (ASX:SPT) share price is climbing higher again appeared first on The Motley Fool Australia.

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