As the reporting season wraps up, WAAAX shares have provided mixed outcomes.

Australia’s answer to the United States’ FAANG shares (Facebook, Amazon, Apple, Netflix, and Google), WAAAX consists of 5 ASX technology shares.

These are WiseTech Global Ltd (ASX: WTC), a logistics platform provider; Afterpay Ltd (ASX: APT), the buy now, pay later behemoth; and Altium Limited (ASX: ALU), an electronics design software provider. It also includes Appen Ltd (ASX: APX), which provides data used in training artificial intelligence (AI) systems, and Xero Limited (ASX: XRO), a cloud-based accounting software provider.

So how have WAAAX shares performed this reporting season? Let’s take a look.

Wisetech 

Wisetech is navigating the evolving impacts of the COVID-19 pandemic on international trade. The logistics industry saw volatility and a marked slowdown across all transport modes in the pandemic’s early stages.

But signs of recovery emerged in mid-2020, and momentum has been improving. Wisetech grew revenue 16% to $238.7 million in 1H FY21, while underlying NPAT increased 61% to $43.6 million. The company declared an interim dividend of 2.7 cents per share (up 59%). This reflects a payout ratio of 20% of underlying NPAT. 

Wisetech says COVID-19 has accelerated structural changes in the industry, providing a strong tailwind for the digitisation of global logistics solutions. Customer levels started to improve in mid-2020, and transaction numbers have since trended upwards.

The company is continuing to invest in product innovation to leverage the structural shift to digitising global supply chains. The long term strategy is to expand the CargoWise platform globally while improving profitability. Wisetech says it is on track to deliver $10 million in net cost reductions in FY21 and achieve a $20 to $30 million run-rate for FY22. 

Afterpay 

Afterpay saw significant growth during the 1H FY21, with underlying sales increasing to $9.8 billion. This was a 106% increase on the $4.8 billion in underlying sales reported in 1H FY20.

Increased adoption of online shopping by consumers in lockdown has helped bolster sales and customer numbers. Afterpay reported 13.1 million customers at the end of 2020, an 80% increase on the prior corresponding period.

The North American market is growing strongly with 8 million active customers, up 127% over the past year. Merchant numbers have also grown, up by 73% to 74.7k. Afterpay made a net transaction margin of $213.9 million during the half, equating to 2.2% of underlying sales. 

Afterpay’s continued focus on global expansion has seen an increase in international markets’ proportion of total sales. International markets accounted for 34% of underlying sales in 1H FY20 but increased to 51% in 1H FY21.

Afterpay is now planning launches into Spain, France, and Italy, while also progressing its early-stage investment in Asia.

The company is also planning to enter the banking arena with a money management app, Afterpay Money. The app will include payments and savings and come with a linked debit card.  New cards can be added to the digital wallet, and customers can even have their salary paid into the account directly. 

Altium 

Altium reported a 12% increase in its subscriber base for 1H FY21, but a 4% decline in revenue which was down to US$89.6 million. This followed eight consecutive years of double-digit revenue growth.

Altium says the decline reflects the economic slowdown caused by extreme COVID conditions in the US and Europe and a challenging post-COVID market in China. The company also undertook a hard pivot to the cloud during the first half but has reported early signs of growing momentum in the second half.

The company declared a dividend of 19 cents per share, down 5% from 20 cents per share for 1H FY20. Altium says that while there is emerging optimism thanks to the roll-out of COVID vaccines, it continues to view fiscal 2021 as a pre-vaccine year.

Therefore full-year revenue guidance is expected to be at the lower end of the range from US$190 million to US$195 million. 

Appen 

Appen maintained solid revenue growth in the full year to 31 December 2020. Revenues were up 12% to $599.9 million, which gave underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $108.6 million.

Investments in sales and marketing yielded 136 new customers across a variety of sectors. Many are small, but Appen says they will increase its market penetration and lay a strong foundation for growth in coming years.

“2020 was a breakout year for new sales, new projects, committed revenue and our entry into China, but it was not without its challenges,” said Appen’s CEO Mark Brayan. 

The company’s B2B selling was impacted by the move to working from home, which resulted in fewer customer wins in Q2 and Q3 before bouncing back in Q4.

Nonetheless, Appen declared a final dividend of 5.5 cents per share. Appen has advised that full-year underlying EBITDA for 2021 is expected to be in the range of $120 million to $130 million, representing growth of 18% – 28%.

Appen says it is in sound financial health with $78 million in cash and no debt at 31 December 2020. 

Xero 

Xero’s financial year ends on 31 March, after which we can expect its full-year results. Xero’s half-year results released in November showed a 21% increase in operating revenue despite challenging conditions.

Subscriber numbers grew to 2.453 million, a 396,000 increase year-on-year. Net profit after tax increased $33.2 million to $34.5 million.

Xero has been supporting customers through the pandemic with software enhancements reflecting government initiatives such as JobKeeper. The company’s strategic priorities are centred on driving cloud accounting and building for global scale and innovation. 

Mixed results for WAAAX

The impact of the coronavirus pandemic on WAAAX shares has varied. Afterpay saw significant growth thanks to structural tailwinds. Altium, however, felt the impact of COVID conditions in the form of declining revenue.

WAAAX shares are now adjusting to the new normal and readying operations for a post-COVID world. Investors will be watching keenly to see how WAAAX shares adapt to this new operating environment. 

More reading

• Here are 4 ASX shares that insiders have been buying recently
• Why February was a shocker for ASX 200 tech shares
• Leading brokers name 3 ASX shares to sell today
• ASX 200 up 0.3%: Mesoblast raises US$110 million, tech shares rebound
• Is Deferit listed on the ASX?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Altium, Amazon, Appen Ltd, and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium 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 AFTERPAY T FPO, Altium, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. 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 EMvision Medical Devices Ltd (ASX: EMV) share price closed 13.2% higher today after the company made a funding announcement.

The EMvision share price finished off the trading session at $2.74 this afternoon.

Here’s a wrap of where the funding will come from for the medical imaging technology provider, and why it may have moved the share price.

Australian Stroke Alliance wins bid

In today’s release, EMvision advised that its commercial collaboration partner, the Australian Stroke Alliance (ASA), submitted a successful bid to the Stage 2 Medical Research Future Fund (MRFF) for a 5-year program to transform pre-hospital stroke care. 

The MRFF stage 2 program was awarded $100 million from the federal government, with 40 million allocated to ASA. 

Of the $40 million, ASA has advised EMVision that it will receive “$8 million of this non-dilutive cash funding in staged payments weighted to the earlier years of the program”. 

This poses the opportunity for EMvision to commercialise its medical imaging technology and work toward further developments.

Executive commentary on funding

Commenting on the ASA collaboration, EMvision CEO Dr Ron Weinberger said:

The ASA brings together an end-to-end medical program to save and improve the lives of patients of one of the most debilitating medical emergencies in the world. No such consortium exists internationally, and the ASA will become a template for not only managing stroke, but other medical emergencies.

The ASA leadership has worked tirelessly to put Australia centre stage in this global battle to save healthy lives and is to be congratulated. We are grateful to the Australian government for recognising this vision and awarding one of the largest medical research grants in Australian history.

EMvision share price snapshot

Despite falling 22.4% year-to-date, the EMvision share price has gained 20.1% over the previous 6-month period.

The company’s market capitalisation is approximately $171.2 million, and 70.8 million shares are outstanding.

More reading

• Why the EMvision (ASX:EMV) share price is going nowhere

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of EMvision Medical Devices Limited. 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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Could the Commonwealth Bank of Australia (ASX: CBA) share price be a buy for the dividend?

What has the CBA share price been doing recently?

Just over a year ago, the CBA share price was above $90 in mid-February 2020. It then plunged 40% to the bottom of the COVID-19 crash when it seemed like there were going to be very large economic repercussions because of all the impacts.

But then central banks across the world stepped in to provide support, whilst the Australian federal government announced support such as jobkeeper and increased jobseeker payments.

Between 23 March 2020 and the end of October 2020, the CBA share price went up 27%.

The good news of the efficacy, or effectiveness, of the COVID-19 vaccines was then announced in November 2020. Since the start of November, the CBA share price has risen another 23%.

The CBA share price has risen so much that it’s almost back to its pre-COVID-19 highs.

Has the profit recovered as well?

CBA recently reported its FY21 half-year result where the bank said that disciplined execution delivered strong outcomes with market share gains in its core businesses, increased provisioning and a significant capital surplus.

Statutory net profit of $4.88 billion represented a decline of 20.8% compared to the first half of FY20. However, cash net profit only fell by 10.8% to $3.89 million.

The major bank said that the low interest rate world we’re living in is impacting profit. It reported a 10 basis point decline of the net interest margin (NIM) to 2.01% because of higher levels of deposits.

CBA’s significant capital surplus was shown with an increase to its common equity tier 1 (CET1) capital ratio of 12.6%, up 90 basis points year on year.

The CEO of CBA, Matt Comyn, said:

This position of strength means we are uniquely placed to respond to the rapidly changing operating context while continuing to support our customers, contribute meaningfully to our communities and deliver business performance.

We have refreshed our strategic priorities to build on our strong foundations and position us for the future. This is an evolutionary change to enable the bank to focus on the new challenges and opportunities ahead.

However, Mr Comyn also said that there are several health and economic risks that could hurt the speed of the recovery, but the bank is prepared for this.

What about the CBA dividend?

CBA’s board decided that a dividend payout ratio of around two thirds of cash profit would be appropriate.

It decided to pay a fully franked dividend of $1.50 per share, up 53% on the second half of FY20. However, this still represented a cut of 25% year on year.

This means that the last twelve months of dividends amounts to a grossed-up dividend yield of 4.2% at the current CBA share price.

Broker Macquarie Group Ltd (ASX: MQG) said that the dividend wasn’t as big as it thought it would be. However, the broker thinks the final FY21 dividend could be around $2 per share because of CBA’s comments about the dividend payout ratio expected to be somewhere between 70% to 80% for FY21. Macquarie has a share price target of $80 for CBA, which means the broker thinks CBA shares will fall by mid-single digits over the next year – it thinks it’s a sell.

However, UBS has one of the most positive expectations of CBA and its dividend, compared to other brokers. The broker likes how much capital the bank has and that it’s benefiting from the resurgent Australian economy.

UBS has a CBA share price target of $90 and it expects a dividend of $3.60 for the full year, equating to a grossed-up dividend yield of 6%.

More reading

• ASX 200 slides lower, A2 Milk surges, Gold Road sinks
• CBA (ASX:CBA) share price on watch after being hit with civil proceedings by ASIC
• Here’s how much Afterpay (ASX:APT) rival Klarna is worth now
• BNPL providers like Afterpay (ASX:APT) set for increased regulation
• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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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The S&P/ASX 200 Index (ASX: XJO) went down 0.4% today to 6,762 points.

The ASX 200 started the day up around 1%, but steadily slid downwards to finish in the red.

Here are some of the highlights from the day:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price finished the day higher by 0.5% despite yesterday’s news that CBA’s subsidiaries would be facing legal proceedings by the Australian Securities and Investments Commission (ASIC).

Commonwealth Securities Limited (Commsec) and Australian Investment Exchange Limited (AUSIEX) are the two subsidiaries in question.

CBA said that the errors were reported to ASIC and that Commsec and AUSIEX have been working with ASIC.

ASIC has filed with the Federal Court and published on its website a statement of agreed facts and contraventions, recognising the co-operation of Commsec and AUSIEX and that they don’t intend to defend against the proceedings.

CBA stated that:

The proceedings relate to issues in respect of regulatory data requirements, trade confirmation requirements (primarily related to exchange traded options), best execution requirements and reconciliations of client monies. In addition, for CommSec only, the proceeding relate to issues in respect of brokerage payments, warrant agreement forms and automated order processing filters.

The issues arose from errors such as information technology system coding or systems issues, human error and/or data entry errors. The only issue where there was any direct financial loss to some customers was in relation to instances of brokerage overcharging.

Commsec disclosed that it has paid total remediation of $6.5 million, which is made up of refunds and other compensation payments to customers.

Big movements in the ASX 200

There were some large movers in the ASX 200.

The best performer in the ASX 200 was the A2 Milk Company Ltd (ASX: A2M) share price which went up around 7.5% today on no specific company news.

At the bottom of the ASX 200, the Gold Road Resources Ltd (ASX: GOR) share price dropped by around 8%. It wasn’t the only gold miner that suffered – the Northern Star Resources Ltd (ASX: NST) share price fell 4.3%, the Evolution Mining Ltd (ASX: EVN) share price dropped 3%, the Resolute Mining Limited (ASX: RSG) share price dropped 2.4% and the Silver Lake Resources Limited (ASX: SLR) share price fell 4.3%.

Another of the biggest declines in the ASX 200 today was buy now, pay later business Zip Co Ltd (ASX: Z1P) which fell around 6%.

Ansell Limited (ASX: ANN)

The Ansell share price initially reacted very positively to the announcement that it may start up its share buy back again.

The personal protection safety solutions business reminded investors that its share buyback was extended for 12 months commencing from 13 November 2020.

While Ansell hasn’t bought any shares recently, it told the market that it could restart buying back its shares under the buyback program from 5 March 2021, after the conclusion of dividend re-investment plan pricing period on 4 March 2021.

More reading

• Here are 4 ASX shares that insiders have been buying recently
• Why this fund manager changed his mind on Bitcoin
• Here’s why Warren Buffett prefers buybacks to dividends
• The latest ASX shares that brokers have upgraded to “buy”
• ASX 200 up 0.3%: Mesoblast raises US$110 million, tech shares rebound

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Ansell 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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Strong performing ASX healthcare shares came few and far between in February. The S&P/ASX Health Care Index (ASX: XHJ) was down 3% for the month, compared to the 1% increase in the ASX 200.  

From respiratory devices, vaccine producers to hospitals and hearing aids, most large cap ASX healthcare shares finished last month in the red. 

With the top end of town struggling, here are the 2 ASX healthcare shares that topped their peers in February.

1. Starpharma Holdings Ltd (ASX: SPL) 

The Starpharma share price pushed 37% higher from $1.50 to $2.08 last month. This follows a series of positive announcements from the dendrimer product (DEP) developer. 

The first in a string of announcements came on 9 February where the company provided an update on its AZDo466 product. The update highlights AstraZeneca’s intention to expand the ongoing clinical program for AZD0466 to include a multi-centre global Phase 1 study. AZD0466 leverages Starpharma’s DEP technology to improve the characteristics and therapeutic index of anti-cancer agents. 

Just four days later on 12 February, the company announced a research agreement with global pharmaceutical giant Merck & Co. Merck & Co is one of the world’s largest pharmaceutical companies, generating US$48 billion in revenue in 2020. 

The final positive announcement for the month came on 23 February where the company provided an update on its Viraleze antiviral nasal spray. 

Viraleze is an antiviral nasal spray that is also shown to be 99.99% effective against COVID-19 and stop infection when applied to cells before and after exposure to the virus. The update reveals that Viraleze has been successfully registered for sale in Europe.

2. Rhythm Biosciences Ltd (ASX: RHY) 

Rhythm is working on a simple, affordable, and effective blood test for the early detection of colorectal cancer, the third-largest cause of cancer-related deaths globally. The company’s ColoSTAT technology has the potential to become a screening test for colorectal cancer. 

Rhythm has advised of multiple hospitals joining its ColoSTAT clinical trials in recent months. More recently, on 11 February, the company announced that the Sunshine Coast University Hospital in Queensland will now participate in trials. This brings the total number of participating hospitals to 10. The trials aim to study the safety and effectiveness of the prototype test kits. 

While the ColoSTAT product is in its early days, the company aims to address the global market through mass screening programs. 

The Rhythm share price has delivered some explosive growth in the last 12 months surging from 6 cents to above $1.60 at various points. In February, the company added another 32% to close at $1.55. 

More reading

• Starpharma (ASX:SPL) share price slips after posting loss
• Here’s why the Starpharma (ASX:SPL) share price is rocketing 13% higher
• Why Bank of Queensland, MNF, Oil Search, & Starpharma are charging higher
• Why Advance NanoTek, Incitec Pivot, Starpharma, & Zoono are tumbling lower
• Why Novonix, Recce, Singular Health, & Starpharma shares are storming higher

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 Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 Jaxsta Ltd (ASX: JXT) share price is picking up steam in late afternoon trade. This comes after the company announced that it has signed a publisher data deal. At the time of writing, the music technology company’s shares are swapping hands for 8.6 cents apiece, up 1.18%.

What did Jaxsta announce?

The Jaxsta share price is racing higher towards the end of market close. Consequently, as investors fight to get a hold of its shares.

According to its release, Jaxsta advised that it has entered into a Commercial Data Access Agreement with Kobalt Music. The deal will run for a period of two years with an option to extend.

Under the terms of the contract, Kobalt Music will provide its publisher data. Thus, improving Jaxsta’s official music credits data information. This is seen as a critical step by the company to launch its Works product on its Jaxsta Pro platform.

In addition, the deal will supplement another set of data available. This will be licenced through Jaxsta’s Data Solutions and Commercial API. Currently, the company has two more paid deals which are scheduled to commence in April this year.

Furthermore, Jaxsta stated that the new agreement will be included in its revenue share for Data Solutions and Commercial API products.

Kobalt Music’s publishing roster represents a number of famous musicians. In particular, Billie Eilish, Beck, Diplo, Elvis Presley, Foo Fighters, The Weeknd, and many others.

Management commentary

Jaxsta founder and CEO, Jacqui Louez Schoorl, touched on the company’s prospects, saying:

Adding and marrying Publisher data with existing Record Label data to provide a deduplicated and deep-linked set of credits creates a unique world of new data integration possibilities for API data agreements with potential commercial partners. This deduplicated data is part of our Works product within Jaxsta Pro which we will be releasing in the coming months.

About the Jaxsta share price

The Jaxsta share price has performed modestly, gaining just above 13% since this time last year. Its shares hit a low of 1.3 cents in March 2020. Prior to accelerating in September, reaching a 52-week high of 18.2 cents.

Based on the current share price, Jaxsta has a market capitalisation of around $21 million.

More reading

• These small cap ASX shares surged more than 100% in February
• Here’s why the Neometals (ASX:NMT) share price is running higher
• ‘Buying the dip’ does NOT work: here’s why
• Here are 4 ASX shares that insiders have been buying recently
• Why the Nine Entertainment (ASX:NEC) share price just hit a 52-week

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.

The post Why the Jaxsta (ASX:JXT) share price is rising higher today appeared first on The Motley Fool Australia.

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The small-cap space is always filled with explosive ASX shares looking to emerge as the next big thing. Here are the small-cap ASX shares that made headlines in February. 

1. Province Resources Ltd (ASX: PRL) 

The Province Resources share price surged an eye-watering 460% on 17 February. It’s a Cinderella story for a small-cap ASX share to announce the right kind of acquisition at a time where there is significant investor appetite for green projects. 

The company announced its intention to acquire Ozexco Pty Ltd. Ozexco holds 7 exploration licenses in the Gascoyne region in Western Australia, a region that is also one of the hottest and windiest areas with significant solar and wind potential. 

The initial exploration and evaluation will be focused on the salt, potash, mineral sands and renewable hydrogen potential over the tenement area. This would make Province the first listed green hydrogen player on the ASX. 

After surging from 2.6 cents to 14.5 cents in just one day, its shares have cooled down to close at 9 cents today. 

2. BARD1 Life Sciences Ltd (ASX: BD1) 

The BARD1 share price found itself running as high as 650% in just six days after the company announced that it’s SubB2M technology could detect all stages of ovarian cancer and disease recurrence.

BARD1 CSO Dr Peter French said:

Whilst this data is preliminary, these excellent results reported by the researchers at Griffith University support the commercial potential of SubB2M for both breast and ovarian cancer monitoring and detection.

This is ground-breaking research since Neu5Gc is a highly specific marker for cancer and BARD1 is using SubB2M alone or in combination with other tissue-specific cancer markers to develop highly-specific tests for breast, ovarian, prostate and pancreatic cancers.

BARD1 plans to develop and commercialise SUbB2M-based blood tests initially for monitoring patients already diagnosed with breast cancer for treatment response and recurrence.

The company expects to report the outcomes of its SubB2M test validation studies by the end of Q3 CY21. 

3. Ioupay Ltd (ASX: IOU) 

Ioupay was arguably the dark horse of the buy now, pay later (BNPL) sector. While BNPL shares across the board were surging at the beginning of February, Ioupay was quietly waiting to announce a game-changer. 

On 9 February, the company announced that it had entered into a Merchant Referral Agreement with EasyStore Commerce to enable EasyStore’s merchants and end-user customers to utilise Ioupay’s BNPL payment services. 

EasyStore services more than 7,000 merchants across the South East Asian (SEA) markets, including Malaysia, Singapore, Indonesia, Philippines, Thailand, Hong Kong and Taiwan. Some 5,000 of these are in Malaysia, with a growing portfolio of merchants in the US. 

In 2020, EasyStore merchants processed a total transaction volume of approximately $435 million. The two companies have started integrating systems with BNPL payment processing capabilities to begin onboarding merchants and approved customers by early March this year. 

It was almost as if the words ‘buy now, pay later’ were enough to send its shares into a buying frenzy. By 18 February, the ioupay share price had ripped 280% higher to a high of 85 cents before management decided it was time to announce a $50 million placement to support its growth initiatives further. 

More reading

• The Province Resources (ASX: PRL) share price zooms 10% higher today. Here’s why
• Why Afterpay, IOUpay, Liontown Resources, & Redbubble are racing higher
• Why the IOUpay (ASX:IOU) share price is charging 13% higher today
• BARD1 (ASX:BD1) share price plummets 15% on legal proceedings
• The IOUpay (ASX:IOU) share price is skyrocketing 30% today

Motley Fool contributor Kerry Sun 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 Neometals Ltd (ASX: NMT) share price is up today after the company announced that its Chinese partner, IMUMR, has started pilot plant trails at the Barrambie Titanium and Vanadium Project.

At the time of writing, the valuable metals miner’s shares are trading 1.49% higher at 34 cents after reaching an intraday high of 36 cents.

Located 80km northwest of Sandstone in Western Australia, Neometals owns the Barrambie Titanium and Vanadium Project. The company considers it the most advanced, undeveloped hard-rock titanium mineral resource in Australia.

Neometals has an approved mining permit for the site and has spent around $30 million in exploration and evaluation since 2003.

Pilot trials commence

In today’s release, Neometals advised that IMUMR has begun pilot trials on gravity concentrates following its recent test work in China. The previous work carried out confirmed results of conventional reductive roasting and magnetic separation of gravity concentrates.

IMUMR will fund and run the trials to substantiate the breakthrough process. It will show that gravity concentrate can be roasted and separated into two high-quality saleable products.

Neometals management said, “It is a significant step forward in realising Neometals’ goal to develop Barrambie as a capital-light concentrate operation initially and retaining the optionality to value add through downstream processing in the future.”

The pilot trials are expected to conclude sometime in the June quarter of this year. Product evaluation results from potential suitors will follow in the September quarter of 2021.

In addition, Neometals will seek to ramp-up discussions for a ‘build-own-operate-transfer’ arrangement.

About the Neometals share price

Over the past 12 months, the Neometals share price has gained more than 90% for investors. The company’s shares hit a multi-year low of 13.5 cents in the COVID-19 market rout of March 2020 before gradually moving upwards. It’s worth noting that last month, its shares hit a multi-year high of 42.5 cents.

Based on the current share price, Neometals commands a market capitalisation of roughly $185.4 million.

More reading

• ‘Buying the dip’ does NOT work: here’s why
• Here are 4 ASX shares that insiders have been buying recently
• Why the Nine Entertainment (ASX:NEC) share price just hit a 52-week
• Oil back to $100 per barrel? ASX energy shares could rocket
• The Atomo Diagnostics (ASX:AT1) share price is popping 7% today

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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Common investment wisdom dictates that share investors should not try to time the market.

No one has a crystal ball and there is no way of knowing if there has been a trough until well after prices have risen back.

Yet almost every stock investor tries to buy the dip. 

After all, it’s human nature to try to pay a cheap price — and not just for shares, right?

So why do we have to avoid trying to time the dips?

‘Good deals don’t stay around forever’

Frazis Capital Partners portfolio manager Michael Frazis explained the reason in a very simple way to his investors last month.

Let’s say you think the market is overvalued now and that it will crash in the near future. So you’ve prepared a cash pile to swoop on the bargains when the dip comes along.

Frazis said it’s nearly impossible to execute this plan because no one knows the market has bottomed until after everyone has moved on.

“If you move to cash based on (whatever) macro fear, you usually have only the briefest of periods to enter at lower prices before the crisis passes,” he said.

“Good deals don’t stay around forever.”

The other scenario is that your prediction was completely incorrect and the share markets continue to rally. Then you’re underinvested and missing out on returns.

“You are stuck: you have to buy back in at higher prices and risk losing twice, or stay out of the market forever,” Frazis said.

So the best way is to just invest without regard to timing.

“We are doing what we did at the lows: staying invested.”

Frazis is optimistic about equities anyway.

“This is somewhat justified as US$1.9 trillion of US government spending is about to wash through markets and central bankers seem determined to keep interest rates at lower bounds,” he told investors.

“Those caught under-invested mid last year have had to buy in at higher levels or miss out completely.”

Mathematical proof that ‘buying the dip’ doesn’t work

Ritholtz Wealth Management director of research Michael Batnick and finance blogger Nick Maggiulli crunched some numbers in February last year as the COVID-19 market crash started happening.

If you invested $1 every day since 1990 in the S&P 500 (INDEXSP: .INX) since 1990 but put in an extra dollar on days when it fell by 2% or more, you’d end up with $41,079.

If you invested the same amount of money evenly each day over the same time period, you’d actually end up with a better return of $41,348.

It feels counterintuitive, but it’s a mathematical lesson not to try to buy the dip.

But you say $2 on dips is not enough. Let’s ramp that up to $100!

Well, would you believe it? According to Maggiulli and Batnick’s numbers, ‘buying the dip’ lost even more money! Evenly timed investments would have returned $176,732 while putting in $100 during the dips would have only ended up with $149,913.

Incredible.

“This is one of those rare pieces of analysis that might have an affect [sic] on how I invest,” said Batnick.

“The message is clear. Don’t wait to buy the dip — just keep investing, because the earlier you start, the better off you’ll be.”

More reading

• Here’s why the Neometals (ASX:NMT) share price is running higher
• Here are 4 ASX shares that insiders have been buying recently
• Why the Nine Entertainment (ASX:NEC) share price just hit a 52-week
• Oil back to $100 per barrel? ASX energy shares could rocket
• The Atomo Diagnostics (ASX:AT1) share price is popping 7% today

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.

The post ‘Buying the dip’ does NOT work: here’s why appeared first on The Motley Fool Australia.

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From time to time, I like to take a look at what ASX shares insiders have been buying and selling. Although it’s not a definitive indicator to buy or sell a share, it can help to make a more informed decision.

Insider buying can demonstrate a strong belief in the company. At a minimum, it shows those at the top have skin in the game.

Here are some shares that have seen insider buying over the last few months.

2 ASX technology shares

ELMO Software Ltd (ASX: ELO)

The human resources and payroll platform provider announced to the ASX a change in director’s interest on 17 February. Independent non-executive director, Leah Graeve, made an on-market purchase of 1,531 shares, amounting to $9,924.66.

This occurred the day after ELMO Software released its half-year results. Despite the company reporting a 29.3% growth in revenue for the period, shares sold off the next day. Potentially, this provided an appealing price for the director to load up.

The ELMO Software share price is still trading below its pre-COVID levels, as are many other ASX shares. In the past 12 months, shares have fallen 27%.

Appen Ltd (ASX: APX)

When looking at the last 6 months for the artificial intelligence data services company, it certainly hasn’t been pretty. Disappointments and downgrades have wiped 51% from the Appen share price since September.

However, that’s didn’t stop non-executive director, Vanessa Liu, from grabbing $25,000 worth of shares on Christmas Eve. The disclosure to the ASX states the purchase was for 1,000 shares at $25.00 a pop.

As it turns out, the pre-Christmas purchase wasn’t much of a gift, as the shares have collapsed a further 33.5% since.

The Appen share price has fallen 25% in the past 12 months.

2 ASX medical shares

Nanosonics Ltd (ASX: NAN)

Nanosonic shares have been climbing this week after the disinfectant technology company posted its half-year results last week. Initially, the market reacted negatively to the slower growth, which was impacted by COVID-19.

Two days later, non-executive director Lisa E. McIntyre loaded up with 8,150 shares. As shown in the disclosure to the ASX, the total investment amounted to $49,981. Only a day beforehand Morgans upgraded Nanosonics’ shares to an add rating with a $6.69 price target.

The Nanosonics share price has also underperformed the S&P/ASX 200 Index (ASX: XJO), with the company’s shares falling 5.2% in 12 months.

Ecofibre Ltd (ASX: EOF)

The Ecofibre share price has been under pressure this month after the hemp health product maker announced disappointing half-year results. The company reported a 49% reduction in revenues and a substantial $5.5 million bottom-line loss. 

As the share price fell this month, so did the value of CEO Eric Wang’s recent purchase. In December, Eric Wang disclosed the purchase of 350,000 shares at a total value of $745,182. The value has since diminished to $446,250 based on today’s current price.  

The Ecofibre share price has fallen 49.6% in the past year.

More reading

• The Nanosonics (ASX:NAN) share price is down 25% in 2021: Time to buy?
• Why this fund manager changed his mind on Bitcoin
• The latest ASX shares that brokers have upgraded to “buy”
• ASX 200 up 0.3%: Mesoblast raises US$110 million, tech shares rebound
• ASM (ASX:ASM) share price jumps as scoping study supports $45m plant build

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

The post Here are 4 ASX shares that insiders have been buying recently appeared first on The Motley Fool Australia.

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