• If you put $1,000 into Mastercard stock last January, here’s how much you’d have now

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    The payment processing company Mastercard Inc (NYSE: MA) had a turbulent year in 2020, like most other stocks in the financial sector.

    But the stock has rebounded since, and overall there seems to be a lot of excitement about the company’s future. It began the year trading at $303.39 per share and recently hit $337.36, representing a gain of about 11.2%. So if you had invested $1,000 in Mastercard stock at the beginning of the year, you would now have about $1,112. You are not going to retire with that money, but you should still feel good about the gain, considering the numerous obstacles from the coronavirus pandemic.

    The S&P 500 Index (SP: .INX) is up about 14.4% year to date, so while the stock came up short of that benchmark, it fared much better than a lot of companies in the financial sector. Additionally, I think Mastercard will likely benefit long term from the digital trends that will develop as a result of the pandemic.

    Although you may think of Mastercard as a credit card company that makes loans, it does not actually extend credit, but makes money by charging fees on payment transactions made on its branded cards. The company suffered earlier in the year from reduced payment volume brought on by limited physical interaction and lockdowns all over the world.

    But Mastercard is well positioned to take advantage of the shift by merchants and customers to a world that is more reliant on digital payments.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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    Bram Berkowitz 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 Mastercard. The Motley Fool Australia has recommended Mastercard. 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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  • Here’s why the ResApp (ASX:RAP) share price is climbing 6%

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    ResApp Health Ltd (ASX: RAP) shares are climbing higher today after the company announced it has launched its SleepCheck app on select Android devices. At the time of writing, the ResApp share price is up 6.25% to 8.5 cents.

    Quick take on ResApp

    ResApp is a digital health company that specialises in developing smartphone applications for the diagnostics and management of respiratory diseases. Machine learning algorithms use sound to detect and measure a variety of breathing conditions, such as breathing, snoring and coughing.

    What’s driving the ResApp share price?

    The ResApp share price is on the rise today following news the SleepCheck app is now available on the Google Play store for most Android smartphones. With the latest inclusion, the SleepCheck app is now available in 36 countries, and covers almost all smartphone devices.

    SleepCheck is a direct-to-consumer mobile application that assesses a person’s risk of obstructive sleep apnoea. The app works using the smartphone’s microphone to pick up sounds and analyse a person’s breathing and snoring patterns. Once the user has finished sleeping, the algorithms then determine if the patient is at risk of suffering from sleep apnoea.

    It requires no accessories or hardware other than the user’s smartphone to make an assessment.

    It’s estimated that 936 million people suffer from sleep apnoea globally, with 80% of undiagnosed patients enduring moderate to severe breathing difficultly.

    ResApp recently signed a 12-month marketing agreement with Australia’s largest consumer healthcare network, HealthEngine. The strategic partnership allows HealthEngine to integrate its booking network into the SleepCheck application.

    For example, if SleepCheck identifies a person is at risk of obstructive sleep apnoea, the application will direct them to see a doctor. HealthEngine allows patients to find and connect with healthcare service providers through a dedicated landing page.

    Comments from management

    ResApp CEO and managing director Dr Tony Keating spoke about the launch, stating:

    The Android device market is large and well- established, with over 2.5 billion devices globally and we are very pleased to have launched SleepCheck to cater for these users. SleepCheck is now available on Google Play in 36 countries, including large markets like Europe, Hong Kong and Singapore.

    Uptake on iOS continues, and we expect Android download rates to add to our growing user base. The launch will also coincide with a marketing campaign in Australia and the UK to drive product awareness, which will allow ResApp to grow its market share and engage with other potential industry partners.

    How did the ResApp share price perform in 2020?

    The ResApp share price has fallen over 60% in the past 12 months. In comparison, the All Ordinaries Index (ASX: XAO) is trading relatively flat over the same period, down by 0.55%.

    Based on the current ResApp share price, the company commands a market capitalisation of around $60 million.

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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • 2 growing small cap ASX shares to watch in 2021

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    At the small side of the market there are a good number of companies with the potential to grow materially in the future.

    Two that have been tipped as future stars are listed below. Here’s what you need to know about them:

    Mach7 Technologies Ltd (ASX: M7T)

    The first small cap share to look at is Mach7. It is a growing developer of enterprise imaging and informatics solutions for image viewing, storage, and workflow management. These solutions can be implemented individually or as a comprehensive end-to-end image management and diagnostic viewing platform.

    The company has been experiencing strong demand for its solutions this year despite the pandemic. In fact, one of the largest healthcare Integrated Delivery Networks (IDN) has just become a customer.

    Trinity Health has signed a seven-year contract for the license and associated support services for its eUnity enterprise viewer. Trinity Health is the fifth largest healthcare IDN in the United States and will be installing it across multiple facilities within its 92 hospitals.

    This caught the eye of analysts at Morgans, who have reiterated their add rating and $1.49 price target on the company’s shares. Morgans suspects this contract could be the first of many due to its growing tender pipeline.

    MyDeal.com.au Limited (ASX: MYD)

    MyDeal.com.au is a $310 million online retail marketplace provider with a focus on furniture, homewares, appliances, technology, baby products, and hardware.

    Thanks to the shift to online shopping this year because of the pandemic, MyDeal has been a very strong performer. This has continued in FY 2021, with the retailer recently reporting a 317% increase in first quarter gross sales to $56.67 million. This was driven by the aforementioned shift online and a 268% increase in active customers to 669,897.

    One broker that is positive on its prospects is RBC Capital Markets. It recently initiated coverage on MyDeal with a buy rating and $1.60 price target. The broker thinks the company is at an inflection point as annualised gross transaction value exceeds $200 million and customer numbers approach 700,000.

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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 MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • ASX 200 up 0.65%: Big four banks rise, tech shares charge higher, Flight Centre jumps

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    At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week strongly. At the time of writing, the benchmark index is up 0.65% to 6,708.2 points.

    Here’s what has been happening on the market today:

    Bank shares higher.

    The big four banks are all on form today and helping to drive the ASX 200 index higher. While all the big four are recording solid gains, the best performer in the group has been the Commonwealth Bank of Australia (ASX: CBA) share price. At the time of writing, the shares of Australia’s largest bank are up a decent 1.3%.

    Tech shares on the charge.

    It has been a positive start to the week for the Australian tech sector. Thanks to gains by tech stars such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX), the S&P ASX All Technology Index (ASX: XTX) is up 0.8% at lunch. This follows a positive night of trade on the technology-focused Nasdaq index. Overnight it recorded a 0.75% gain after traders cheered the US COVID-19 stimulus bill signing.

    Mining shares push higher.

    BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares are on the rise today despite a pullback in the iron ore price. According to CommSec, the spot iron ore price eased by US$2.25 or 1.4% to US$164.25 a tonne. This was driven by a downtrend in steel prices over the weekend and cold-weather concerns in China. 

    Best and worst ASX 200 performers.

    The best performer on the ASX 200 on Tuesday has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with a 4% gain. Investors may be optimistic that New South Wales has its COVID outbreak under control now. The worst performer has been the GUD Holdings Limited (ASX: GUD) share price with a 2% decline. This is despite there being no news out of the products company.Best and worst ASX 200 performers.

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  • This ASX share was the best IPO of 2020: fundie

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    Initial public offerings (IPOs) were all the rage in the second half of this year.

    But when every dog and his master are getting on the bandwagon, you’re bound to see a wide variety in substance.

    “There was very high variability in the quality of new listings this year,” Prime Value portfolio manager Richard Ivers told The Motley Fool.

    Some companies were clearly taking advantage of “a short-term boost” to the bottom line from the COVID-19 pandemic, he said.

    “With the market placing high valuation multiples on some of these sectors, they got the double benefit of high valuation multiples on cyclically high profits.

    “Others were high quality businesses with a solid long term outlook.”

    So what was the best out of a motley crew?

    The best of the good ones

    Pengana Capital portfolio manager Chris Tan told The Motley Fool that Liberty Financial Group Pty Ltd (ASX: LFG) was the best new ASX listing in 2020.

    The loan provider’s long track record as a private company gives Tan much confidence that it knows what it’s doing.

    “LFG is a well-established company with a consistent history of profitability, unlike a lot of the latest IPOs. It was established in 1997 and has become a top 10 home lender in Australia,” he said.

    “Surviving the GFC of 2008 is testament to its credentials in credit risk management. Its proprietary, tech-driven risk-based pricing model allows it to profitably write new business that larger players (eg the big 4 commercial banks) are often not able to.”

    The Liberty IPO share price was not excessive, making it even more attractive.

    “The IPO pricing was favourable at a P/E [ratio] of 11 times financial year 2021 earnings and a forecast 4% dividend yield.”

    Liberty shares sold for $6 during the IPO and have bumped up to $7.90 in just two weeks since listing.

    Aside from its already-strong residential loan business, Liberty still has plenty of untapped potential in other areas.

    “It has growth opportunities in large addressable markets such as commercial, personal and motor loans,” said Tan.

    To round out the case for Liberty shares, insider shareholdings have remained very high after the listing.

    “The size of the IPO was limited with the founder group maintaining almost 80% of the shares on listing,” Tan said. 

    “The main founder and shareholder [and executive director], Sherman Ma, is keeping his entire shareholding. As the most knowledgeable of insiders, when founders maintain large stakes a new investor can justifiably derive more confidence in a company’s future prospects than with a normal IPO.”

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

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  • Why a2 Milk, Adacel, Dusk, & Nuheara shares are charging higher

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    In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week strongly. At the time of writing, the benchmark index is up 0.8% to 6,717.1 points.

    Four shares that are climbing more than most today are listed below. Here’s why they are charging higher:

    A2 Milk Company Ltd (ASX: A2M)

    The a2 Milk share price is up 4% to $11.38. Investors have been buying the infant formula company’s shares after they were sold off earlier this month following a guidance downgrade. It appears as though they believe the selling was overdone and the headwinds it is facing in the daigou channel are only temporary.

    Adacel Technologies Limited (ASX: ADA)

    The Adacel share price has jumped 8% to 96 cents. This morning the air traffic management systems provider announced its intention to conduct an on-market share buy-back during the period from 11 January 2021 to 10 January 2022. According to the release, the company will acquire up to approximately 7.6 million or up to 10% of its shares on issue.

    Dusk Group Ltd (ASX: DSK)

    The Dusk share price is up a sizeable 12% to $2.02. Investors have been buying the home fragrance product retailer’s shares after it provided a positive trading update. Management expects sales for the first half of FY 2021 to be in the range of $90 million to $90.5 million. That compares to $58.7 million in the first half of FY 2020. Earnings before interest and tax (EBIT) is estimated to be between $26 million and $27 million. This is up materially on FY 2020’s first half EBIT of $9.7 million.

    Nuheara Ltd (ASX: NUH)

    The Nuheara share price has rocketed 13.5% higher to 5 cents. The catalyst for this was a big announcement by the smart and affordable hearing solutions provider. Nuheara has signed an agreement to manufacture HP-branded products for American multinational information technology company HP Inc (NYSE: HPQ). According to the release, the hardware product purchase agreement has a contracted initial term of three years with automatic renewals for successive one-year periods.

    This Tiny ASX Stock Could Be the Next Afterpay

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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 A2 Milk. 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 AVITA, IDP Education, Over the Wire, & Viva Energy shares are dropping lower

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    The S&P/ASX 200 Index (ASX: XJO) has returned from the Christmas break in style and is storming higher. In late morning trade the benchmark index is up 0.65% to 6,708.7 points.

    Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

    AVITA Medical Inc (ASX: AVH)

    The AVITA share price is down 1% to $5.05. This regenerative medicine company’s shares have come under pressure this year for a couple of reasons. The first was the negative impact that COVID-19 has had on the company’s sales. The second was AVITA’s removal from the ASX 200 index at the most recent quarterly rebalance. This will have led to selling from index-tracking ETFs and fund managers.

    IDP Education Ltd (ASX: IEL)

    The IDP Education share price has fallen over 1% to $20.33. This latest decline means the language testing and student placement services company’s shares have now fallen over 20% since hitting a 52-week high in late November. This may be down to profit taking and concerns that the international student market will take longer to recover than first expected.

    Over The Wire Holdings Ltd (ASX: OTW)

    The Over The Wire share price has continued its poor run and is down a further 1% to $4.20. Investors have been selling the telecommunications, cloud and IT solutions provider’s shares since the release of a trading update. Although that update reveals that the company expects to report a 22% to 28% increase in EBITDA in the first half, this has been boosted by acquisitions. Its existing businesses will deliver lower EBITDA than a year ago.

    Viva Energy Group Ltd (ASX: VEA)

    The Viva Energy share price has dropped 4% to $1.88 despite there being no news out of the fuel retailer. One broker that sees this share price weakness as a buying opportunity is Goldman Sachs. It recently maintained its buy recommendation and $2.40 price target on the company’s shares. The broker notes that its shares trade at a meaningful discount to peers.

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    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…

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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 Avita Medical Limited, Idp Education Pty Ltd, and Over The Wire Holdings Ltd. The Motley Fool Australia has recommended Avita Medical Limited and Over The Wire Holdings 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 Dusk Group (ASX:DSK) share price is rocketing 14% higher

    homewares asx share price represented by candles and reed diffuser on tray

    Dusk Group Ltd (ASX: DSK) shares are rocketing higher in morning trade after the home fragrance product retailer provided a positive trading update and earnings guidance for the first half of the 2021 financial year (FY21). At the time of writing, the Dusk share price has surged 13.89% higher to $2.05.

    What’s driving the Dusk share price higher?

    The Dusk share price is surging this morning after the company confirmed its sales and earnings growth continued in November and December. Dusk Group reported it also ended the first half of FY21 with no drawn bank debt, significant surplus cash and a well-balanced inventory position.

    Dusk’s earnings guidance for the first half of FY21 is based on unaudited financial results to the end of November and a preliminary estimate for December based on actual sales.

    The company estimates sales for the first half of FY21 will be in the range of $90.0 to $90.5 million. That compares to $58.7 million in the first half of FY20. Earnings before interest and tax (EBIT) are estimated to be between $26.0 and $27.0 million. EBIT in the first half of FY20 was $9.7 million.

    Commenting on the company’s performance, Dusk CEO Peter King said:

    The results delivered across the first half of FY21 are well ahead of the results delivered in the prior corresponding period despite a significant period of disrupted trade in Melbourne. They build on the strong results delivered across the past three years and further demonstrate the success of our focused strategy and the ability of our team to execute, including in a volatile environment where agility has been key.

    Dusk Group snapshot

    Dusk is a specialty retailer of home fragrance products. The company offers a range of Dusk branded products, both from its physical stores and online. Its products include candles, reed diffusers, essential oils, electronic diffusers and air purifiers, and fragrance related homewares.

    The company is a newcomer to the ASX, with Dusk shares commencing trading on 2 November 2020. While the reintroduction of lockdown measures in Victoria during its early trading weeks impacted instore sales, Dusk’s online presence offered consumers an alternative to brick and mortar shopping.

    Dusk shares closed the first day of trading at $1.69. The Dusk share price reached a previous closing high of $1.92 on 10 December. At time of writing, shares are trading for $2.05 which represents a share price gain since 2 November of more than 21%.

    By comparison the All Ordinaries Index (ASX: XAO) is up 13.34% over that same period.

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

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  • Why the Nuheara (ASX:NUH) share price is rocketing 23% higher today

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    The Nuheara Ltd (ASX: NUH) share price is back from the Christmas break with a bang.

    In morning trade the Nuheara share price is rocketing 23% higher to 5.4 cents.

    What did Nuheara announce?

    This morning the smart and affordable hearing solutions provider released two big announcements.

    The first announcement revealed that Nuheara has signed an agreement to manufacture HP-branded products for American multinational information technology company HP Inc (NYSE: HPQ).

    According to the release, the hardware product purchase agreement has a contracted initial term of three years with automatic renewals for successive one-year periods.

    This umbrella agreement is designed to manage the design, manufacture, and supply of multiple products throughout the life of the contract. The first Nuheara manufactured product to be supplied under the agreement is a HP branded True Wireless Earbud with charging case.

    Utilising Nuheara-owned and developed intellectual property, this product is designed as a premium, compact audio earbud that will enhance the user’s ability to be productive, provide a personalised experience and can be used comfortably in dynamic and ever-changing physical environments. The product will also carry a Nuheara co-brand.

    Management advised that the product is on schedule to commence mass shipment to HP in the third quarter of FY 2021. Nuheara has already manufactured and supplied HP the validation units of the product. There are no minimum or maximum supply volumes.

    CEO Justin Miller commented: “We are delighted to extend our partnership with HP to a long-term supply agreement. This agreement is another pillar in Nuheara’s diversification of revenue streams, building on our growing Direct to Consumer sales with OEM partnerships. With an embedded strategic partner the size of HP, it provides the potential of significant upside to our global reach and scale.”

    Institutional placement.

    In a separate announcement, Nuheara revealed that it has raised $11.5 million before costs through an oversubscribed placement of 287.5 million new shares at an issue price of $0.04 per share.

    Net proceeds from the placement will be principally used to fund the acceleration of direct to consumer sales and activities, as well as supporting credit terms for Nuheara’s manufacturing and production costs associated with the HP agreement.

    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!

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  • Why the DroneShield (ASX:DRO) share price is jumping 6% today

    man flying remote control drone

    DroneShield Ltd (ASX: DRO) shares are rocketing higher today on news the defence contractor has signed an additional government agency order. At the time of writing, the DroneShield share price has lifted 5.9% to 18 cents.

    What’s driving the DroneShield share price?

    The DroneShield share price is on the rise today after the company announced it has received a follow up order for its DroneGun Tactical hand-held, counter-unmanned aerial systems (UAS) products. The additional purchase is said to be from a Five Eyes country. The term ‘Five Eyes’ relates to a signals alliance between the United States, Canada, Australia, the United Kingdom, and New Zealand.

    DroneGun Tactical is a portable, long range counter measure used against UAS threats. When attacking the target, the high-tech gun safely brings the enemy UAS down to ground with no peripheral damage, protecting the surrounding environment.

    The deal, valued at around $400,000, represents ongoing commitments from government agencies, which have sought DroneShield products in the past. This includes a $900,000 purchase of DroneGun counter UAS products that was announced on 1 October. The latest transaction is due to be completed sometime in the first-quarter of the new year, pending usual export approvals.

    Words from the CEO

    Commenting on the contract award, DroneShield CEO Mr Oleg Vornik reinforced the company’s importance to defence markets. He said:

    This order demonstrates adoption of our products at a mature sales cycle level, where ongoing repeat orders of meaningful scale start to occur. There is necessarily a larger upfront effort in developing the technology and achieving the initial adoption by tier 1 customers.

    This order shows DroneShield moving to a subsequent phase of ongoing sales without requirement of testing and evaluation prior to each sale, as our products become the standard for counter-UAS technology amongst leading Government agencies globally.

    DroneShield share price snapshot

    The DroneShield share price has fallen pretty hard over the past 12 months, losing nearly 40% for shareholders. While the company signed off a slew of contracts in 2020, its share price has failed to take off.

    Based on the current DroneShield share price, the company has a market capitalisation of $66.3 million.

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    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 DroneShield (ASX:DRO) share price is jumping 6% today appeared first on The Motley Fool Australia.

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