One of the most stunning ASX shares to watch in 2020 has been Afterpay Ltd (ASX: APT). Afterpay shares are today trading at $114.44 at the time of writing, up 2.83% for the day, despite the broader S&P/ASX 200 Index (ASX: XJO) dropping 0.38% today so far.

Afterpay shares blew off some steam last Friday, dropping 7.5% after making yet another record all-time high the previous day. Afterpay’s high watermark now stands at an incredible $123.40 a share. Even though the company has cooled off significantly since last week when it made those new highs, Afterpay still commands a market capitalisation of around $32 billion on today’s prices.

That places it almost in the middle of Coles Group Ltd (ASX: COL) and Telstra Corporation Ltd (ASX: TLS) in sheer size. That would have been unthinkable at the start of the year. Reflecting this new heft, today actually marks the first day that Afterpay has officially joined both the ASX 50 and ASX 20 Indexes as part of S&P Global‘s quarterly rebalancing.

So just how rich has this buy now, pay later (BNPL) shooting star made its shareholders in recent months and years? Let’s have a look

The never ending afterparty for Afterpay shareholders

So let’s get this statistic out of the way first. Afterpay in its current form first debuted on the ASX back in June 2017 after Afterpay and Touchcorp merged to create Afterpay Touch. The earliest recorded Afterpay share price post-merger was $2.95. Any shareholders who bought in back then would be sitting very happily on a gain of 3,844% on today’s prices.

But, although a few lucky investors may have executed that particular trade, the reality is that, back then, very few ASX investors would have even been aware of Afterpay shares, let alone the company’s concept of its flagship BNPL product.

We’ll also get this one out of the way. The Afterpay share price started 2020 at $30.63, meaning the company’s shares are up around 270% year to date. That comes after the approximate 100% gain we saw in 2018, as well as a rough 150% gain in 2019.

Afterpay share price rollercoaster

But the Afterpay share price has had a wild year in 2020. Back in March, Afterpay shares fell as low as $8.01, which was the lowest the company had traded at since mid-2018. If any investor was lucky enough to buy Afterpay shares at that particular price on 23 March (a very narrow window of opportunity), the gain they would be looking at on today’s prices would be 1,335%. Not a bad return for 9 months. As an indication, if an investor bought 1,000 shares at that price on that day, it would have set them back $8,010. Those 1,000 shares would today we worth $114,440. Enough said.

More reading

• ASX 200 Weekly Wrap: ASX hits new post-March high
• How useful is the P/E ratio in assessing ASX shares?
• These were the best performing ASX 200 shares last week
• Here’s how ASX buy now, pay later (BNPL) shares have performed in 2020
• Why Afterpay (ASX:APT) and these ASX shares just hit 52-week highs or better

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. 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 Pensana Rare Earths PLC (ASX: PM8) share price is soaring this morning, up 11.2% at $1.34 after shooting up 14% in early trade.

This follows the company reporting positive results from its rare earths Coola Project in Angola.

What’s sending the Pensana share price flying?

In today’s ASX announcement, Pensana reported that soils from its first sampling programs at its Coola Project contained high grade rare earths. The 7,500sq km project is located just 16km north of the company’s flagship Longonjo Project.

Pensana’s assay results from soil sampling over the Coola carbonatite identified a high tenor soil anomaly up to 4.7% rare earth elements (REO), which extend over a 1.3km by 1.4km area.

Further assay results from additional soil sampling are expected shortly. The company intends to drill test the defined targets in 2021.

Commenting on the results, Pensana COO Dave Hammond said:

These high grade rare earth assays are a great start, from what is only the first of several exploration targets for critical technology metals identified within the new Coola Project.

Results confirm a rare earth mineralised carbonatite at Coola that is now sufficiently well-defined for drill testings. Drilling will also determine if rare earth mineralised carbonatite lies beneath the soil cover in the central part of the 1-kilometre diameter volcanic pipe.

Pensana also revealed that it has appointed economic geologist Grant Haywood as the exploration manager.

“It is great to have Grant join us and lead the team going forward with his extensive experience in the evaluation of rare earth deposits and a whole range of other commodities,” Hammond said.

Addressing the company’s flagship project, he added, “The drilling program at Longonjo was efficiently and successfully executed under Grant’s supervision and 100 tonnes of the mineralisation is now on its way to Perth.”

Pensana share price and company snapshot

Pensana Rare Earths is an active Angolan-focused mineral exploration and development company. Its projects include the Longonjo and Coola sites.

2020 has proven a stellar year for Pensana shareholders. At least those that held their nerve earlier this year, when the Pensana share price crashed 68% from 5 March through to 23 March.

Despite that crash, share are up 661% year-to-date, compared to 2% gain on the broader All Ordinaries Index (ASX: XAO).

As for the Pensana share price gains since 23 March? Up 1,270%.

More reading

• ASX 200 Weekly Wrap: ASX hits new post-March high
• Why the CleanSpace (ASX:CSX) share price is climbing today
• Recent development sends the Antisense (ASX:ANP) share price soaring 45%
• With the Archer Materials (ASX:AXE) share price up 222% this year, what’s next?
• Why the BSA (ASX:BSA) share price has surged 7% higher today

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The Pensana Rare Earths PLC (ASX: PM8) share price is soaring this morning, up 11.2% at $1.34 after shooting up 14% in early trade.

This follows the company reporting positive results from its rare earths Coola Project in Angola.

What’s sending the Pensana share price flying?

In today’s ASX announcement, Pensana reported that soils from its first sampling programs at its Coola Project contained high grade rare earths. The 7,500sq km project is located just 16km north of the company’s flagship Longonjo Project.

Pensana’s assay results from soil sampling over the Coola carbonatite identified a high tenor soil anomaly up to 4.7% rare earth elements (REO), which extend over a 1.3km by 1.4km area.

Further assay results from additional soil sampling are expected shortly. The company intends to drill test the defined targets in 2021.

Commenting on the results, Pensana COO Dave Hammond said:

These high grade rare earth assays are a great start, from what is only the first of several exploration targets for critical technology metals identified within the new Coola Project.

Results confirm a rare earth mineralised carbonatite at Coola that is now sufficiently well-defined for drill testings. Drilling will also determine if rare earth mineralised carbonatite lies beneath the soil cover in the central part of the 1-kilometre diameter volcanic pipe.

Pensana also revealed that it has appointed economic geologist Grant Haywood as the exploration manager.

“It is great to have Grant join us and lead the team going forward with his extensive experience in the evaluation of rare earth deposits and a whole range of other commodities,” Hammond said.

Addressing the company’s flagship project, he added, “The drilling program at Longonjo was efficiently and successfully executed under Grant’s supervision and 100 tonnes of the mineralisation is now on its way to Perth.”

Pensana share price and company snapshot

Pensana Rare Earths is an active Angolan-focused mineral exploration and development company. Its projects include the Longonjo and Coola sites.

2020 has proven a stellar year for Pensana shareholders. At least those that held their nerve earlier this year, when the Pensana share price crashed 68% from 5 March through to 23 March.

Despite that crash, share are up 661% year-to-date, compared to 2% gain on the broader All Ordinaries Index (ASX: XAO).

As for the Pensana share price gains since 23 March? Up 1,270%.

More reading

• ASX 200 Weekly Wrap: ASX hits new post-March high
• Why the CleanSpace (ASX:CSX) share price is climbing today
• Recent development sends the Antisense (ASX:ANP) share price soaring 45%
• With the Archer Materials (ASX:AXE) share price up 222% this year, what’s next?
• Why the BSA (ASX:BSA) share price has surged 7% higher today

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week in the red. At the time of writing the benchmark index is down 0.4% to 6,647.5 points.

Four shares that have not let that hold them back are listed below. Here’s why they are charging higher:

City Chic Collective Ltd (ASX: CCX)

The City Chic share price has rocketed 14.5% higher to $3.63. Investors have been buying the retailer’s shares after it announced a binding asset purchase agreement to acquire UK-based women’s plus-size clothing retailer Evans for 23.1 million pounds (A$41 million). Management expects the acquisition to complete on 23 December 2020, subject only to payment of the cash consideration.

Kogan.com Ltd (ASX: KGN)

The Kogan share price has jumped 5% higher to $19.01. The catalyst for this appears to be the COVID-19 outbreak in New South Wales. Investors may be betting that the online retailer will be a big winner if consumers are forced to shop online again. In addition to this, Kogan’s shares commenced trading on the ASX 200 index this morning following the quarterly rebalance.

Next Science Ltd (ASX: NXS)

The Next Science share price is up over 5% to $1.25. Investors have been buying the medical device company’s shares after it announced the receipt of CE mark approval for its BlastX product. BlastX is an antimicrobial wound gel that uses the company’s biofilm-disrupting Xbio technology. It works by breaking down the protective layer of biofilm and eliminating the bacteria. After which, it maintains a moist wound environment which allows the healing process to begin.

NIB Holdings Limited (ASX: NHF)

The NIB share price is up almost 4% to $5.83. This gain has been driven by news that the private health insurer has received approval from the Federal Minister for Health to increase its insurance cover premiums for NIB health funds by an average of 4.36% across all products. These changes will come into effect on 1 April 2021. This is a larger than normal increase for NIB. Over the last three years, the company’s average premium increase was 3.55%.

More reading

• Here’s what is driving the NIB (ASX:NHF) share price higher today
• Why the Next Science (ASX:NXS) share price is 5% higher today
• Why the City Chic (ASX:CCX) share price is rocketing 15% higher
• 3 fantastic ASX growth shares to buy in 2021
• These are the 7 best ASX retail shares in 2020

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 Kogan.com ltd and Nexus Energy Limited. The Motley Fool Australia has recommended Kogan.com ltd and NIB 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 Cardinal Resources Ltd (ASX: CDV) share price has dropped by almost 2% this morning, as the possibility of the company’s takeover remains uncertain just two days before an offer deadline.

This comes after one of its takeover suitors, Nord Gold, reminded Cardinal shareholders that the deadline for its offer is on 23 December.

The Cardinal share price is currently trading at $1.06, down 2 cents.

Three-way deadlock

Nord Gold reminded shareholders of the impending deadline, saying that “Cardinal shareholders who want to benefit from Nord Gold’s prompt payment terms (two trading days after selling to Nord Gold), must sell their shares on-market before Nord Gold’s offer closes on 23 December.

Cardinal Resources has been pursued as a takeover target by three different companies, all with the same offer price of $1.05.

In June, Cardinal received a takeover bid from Hong Kong-based Shandong Gold at an offer price of 60 cents per share, valuing the company at around $300 million.

The Chinese company, which is the second-largest gold producer in China, then increased its offer price for Cardinal to $1.00 per share in September, later increasing it again to $1.05 in November.

That higher offer was meant to outbid another interested party, Nord Gold, a Russian gold miner which had previously increased its own offer from 60 cents to 90 cents a share. Nord Gold also increased its offer price to $1.05 on 11 December.

Cardinal was also approached by another suitor in November, in the form of a Ghana-based company, Engineers & Planners Company Limited. That offer also stood at $1.05 per share.

About the Cardinal Resources share price

Cardinal is a West African gold‐focused exploration and mining company that holds interests in tenements within Ghana, West Africa.

The company is focused on the development of the Namdini Gold Project, and released its feasibility study on 28 October 2019. The study concluded the project had an ore reserve of approximately 5.1 million ounces.

The Cardinal share price has risen by over 230% this year. It began the year at 32 cents before rising to today’s level. The company currently commands a market capitalisation of $592 million. 

More reading

• Cardinal Resources (ASX:CDV) share price rises on 3-way takeover deadlock
• Cardinal Resources (ASX:CDV) share price lifts after third takeover bid

Motley Fool contributor Eddy Sunarto 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 two exchange-traded funds (ETFs) in this article have demonstrated growth and could be worth watching.

What is an exchange traded fund?

In the above link is a breakdown of an ETF, but in summary it provides investors exposure to a group of assets or businesses through a single investment. You don’t have to go out and buy the 100, 500 or thousands of individual businesses yourself.

This would save a lot on brokerage and it also provides instant diversification. This diversification can supposedly lower risks because if there’s a problem with one business (or sector) then the exposure to the other businesses and sectors can mitigate that.

Here are two examples of ETFs that are in the technology space and are growing quickly:

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF is designed to give exposure to the world’s leading cybersecurity companies in a single ASX trade. BetaShares, the ETF provider, said that cybersecurity is under-represented on the ASX.

BetaShares also said that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

The fund’s portfolio includes global cybersecurity giants, as well as emerging players, from a range of global locations.

It has positions in 40 businesses including Crowdstrike, Zscaler, Okta, Accenture, Cloudflare, Cisco Systems, Palo Alto Networks, Fireeye, F5 Networks and Proofpoint. At the small end of its weightings it has businesses like Tufin Software Technologies, Ribbon Communications and Ultra Electronics.

In terms of geographical diversification, around 90% of the portfolio is invested in US businesses whilst the rest is allocated to countries like the UK, Israel, Japan, France and South Korea.

After including the annual management fee of 0.67% per annum, the Betashares Global Cybersecurity ETF has delivered net returns of 18.3% over the past year and 21.5% per annum over the past three years.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF is designed to give exposure to many of the world’s most innovative companies that are revolutionising our everyday lives. It’s invested in 100 of the biggest businesses listed on the NASDAQ.

BetaShares said that with its strong focus on technology, the Betashares Nasdaq 100 ETF provides diversified exposure to a high-growth potential sector that is under-represented in the Australian share market.

Many of the world’s largest global technology businesses are in the holdings of this ETF. Its top ten holdings are: Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet, Nvidia, PayPal and Adobe.

There are plenty of other recognisable names in its holdings including Netflix, Intel, Booking Holdings, eBay and Zoom. Plus, there are some US-listed overseas tech shares in the holdings too like Baidu, JD.com, Mercadolibre and ASML.

In terms of sector allocation, almost half of the ETF is specifically invested in ‘IT’. But there are some non-tech holdings in there such as Costco, PepsiCo, Starbucks, Moderna, Regeneron and Lululemon Athletica which provides diversification.

Whilst all of the businesses are listed in the US, the underlying holdings are certainly not 100% from the US.  

Betashares Nasdaq 100 ETF has an annual management fee of 0.48% per annum. Its net return after fees has been 34.4% over the past year. The average net return per annum over the last five years has been an average of 21.5%.

More reading

• How to invest in US shares in 2021
• 2 high quality ETFs for ASX investors to buy
• Creso Pharma and Nuix were among the most traded shares on the ASX last week
• 3 ASX ETFs to buy in 2021
• 2 ETFs delivering solid returns

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

If you’re a fan and follower of legendary investor Warren Buffett, then you’re certainly aware of Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B). When people talk about mirroring Buffett’s buys and sells, they’re actually talking about Berkshire’s trades. The holdings of the company’s portfolio are publicly disclosed every quarter, too, which makes riding the Oracle of Omaha’s coattails a relatively easy task. Easier still is simply owning shares of the highly diversified multinational conglomerate!

Whatever your style, a handful of things are likely to happen with Berkshire Hathaway’s portfolio in what will hopefully be a more normal 2021. Three stand out above the rest. Buffett and his acolytes have already tipped their hands, so to speak, as to two of them.

1. Rekindled operating earnings, cash flow

It’s an often overlooked nuance of the Berkshire Hathaway portfolio, but it’s not just a collection of stocks. Around half of Berkshire’s $500 billion valuation reflects the value of privately held companies, like See’s Candies, Dairy Queen, Helzberg Diamonds, GEICO, Pampered Chef, and Benjamin Moore, just to name a few.

These owned companies are tracked differently than Berkshire’s stocks. Berkshire’s publicly traded investments are called “investments in equity securities” on the company’s books, and changes to their value are booked as “investment gains (or losses)” on its quarterly statements. Businesses that are outright owned by Berkshire Hathaway, however, don’t have an ever-changing market value. They’re the companies that drive revenue that’s eventually turned into net income and cash flow, as any stand-alone business reports.

The arrangement can make it tough to ferret out just how Buffett’s non-stock holdings are performing in any given quarter. And like most other companies, this year has been a tough one for Berkshire. Its third-quarter operating profits fell 32% year over year, worsening from Q2’s 10% dip in operating income to $5.5 billion. You may have seen much different numbers due to gains in the value of the stocks also held by Berkshire during that time, though no amount of unrealized stock gains can fully offset the record-breaking net loss of $50 billion booked during the first quarter of the year, when the pandemic first took hold. As it stands right now, Berkshire’s actual operating income this year should be on the order of about half of last year’s total.

Buffett cares little about these wild swings in reported quarterly income, as the stock market’s volatility exaggerates how well or how poorly the portfolio is actually doing. But you should care, since the cash these privately held companies produce ultimately funds things like new acquisitions and stock buybacks. The good news is, there’s every reason to believe operating income and cash flow will look more like 2019’s levels in a more normal 2021.

2. A scaleback of Apple

Much of this year’s non-operating (and unrealized) gains logged by Berkshire can be attributed to the fund’s surprisingly big stake in Apple (NASDAQ: AAPL).

It’s no secret Buffett’s never been a huge fan of tech stocks, explaining he doesn’t understand them well enough to judge them. Nevertheless — and presumably with some nudging from other Berkshire team members — the company began building a stake in the tech giant back in 2016. In the meantime, it’s ballooned into Berkshire’s biggest single stock position. With nearly 1 billion shares worth more than $100 billion, Apple accounts for nearly half of the total value of Berkshire’s overall stock holdings.

That may be enough, though, if not more than enough. Berkshire shed around 36 million shares of the iPhone maker during Q3, or roughly $4 billion worth.

The move could simply be chalked up to a little profit-taking. Apple shares have nearly doubled in value this year, and it’s not like Buffett hasn’t occasionally sold some Apple stock since Berkshire first opened its position in 2016. But Buffett and his stock-picking team rarely do one-offs. They generally want in or out. The fact that we’ve now seen multiple partial exits may well indicate Berkshire is looking for a more substantial exit of the trade.

3. Added pharmaceutical exposure

Finally, while Berkshire may be on the way out of its Apple trade, it’s clearly looking to add stakes in pharmaceutical stocks. During the third quarter, the company added brand new positions in Bristol-Myers Squibb (NYSE: BMY), Merck (NYSE: MRK), and AbbVie (NYSE: ABBV). Berkshire also bought a small stake in Pfizer (NYSE: PFE).

None of these positions were particularly big by Berkshire standards. The company didn’t commit more than $2 billion to any of them, and “only” owns a little more than $100 million worth of Pfizer despite its successful (and now approved) COVID-19 vaccine. It’s not clear exactly what Buffett or his managers may see for the industry that they didn’t see as of the second quarter.

As is the case with the modest repeated sales of Apple shares, though, this new interest in pharma companies is likely to be a prelude to much bigger positions that are gradually expanded rather than established with one big trade.

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

More reading

• World’s 10 biggest companies are now worth 12% of Earth’s GDP
• Why Berkshire Hathaway is a retiree’s dream stock
• Here’s how world’s 10 richest made $1.5 trillion from COVID-19

James Brumley 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 Apple and Berkshire Hathaway (B shares) and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Origin Energy Ltd (ASX: ORG) share price and the Buru Energy Limited (ASX: BRU) share price are on the radar today, after both companies announced that Origin has secured farm-in permits in Buru’s Canning Basin oil field.

At the time of writing, the Origin Energy share price has slipped 0.4% to $4.88, while the Buru Energy share price has charged 12% higher to 10.5 cents.

What was announced this morning

Origin Energy has announced a farm-in with Buru for 7 permits covering 20,000sq km in Western Australia’s prospective Canning Basin.

A farm-in permit refers to an arrangement whereby a company acquires an interest in a lease owned by another company, on which oil or gas has been discovered or is being produced.

Under the agreements, Origin secures a 50% equity share in five permits with Buru Energy, and a 40% equity share in two permits with Buru and Rey Resources Limited (ASX: REY) – in exchange for carrying $12.3 million of their share of work program costs.

The total estimated spend by Origin over a 2-year period is expected to be approximately $35 million, inclusive of a two-well drilling program and seismic work.  

Origin also has contingent options to carry an additional $10.6 million of Buru and Rey’s costs over a four-year period.

In addition, Origin has the option to assume operatorship for any significant gas development, as well as any carbon capture and storage development.

Origin Executive integrated gas general manager Mark Schubert said the investment would give Origin opportunity in gas plays:

Origin will now hold positions in three large prospective onshore basins – the Beetaloo, Canning, and Cooper-Eromanga – giving us exposure to conventional and unconventional gas plays and what we believe are the most prospective shale formations in Australia.

Our interest in these seven permits lies in the strength of the gas resources following extensive analysis of the basin, and the longer-term potential for carbon capture and storage.

Schubert also said the investment opened the pathway for green gas offerings in the future, saying that “gas remains core to Origin’s strategy, as it can help drive the transition to lower emissions faster by supporting intermittent renewables and replacing more carbon intensive fuels”.

Quick take on Origin Energy’s business

Origin Energy has two main revenue sources – Australian energy retail, and liquified natural gas (LNG) export.

In the retail business, Origin Energy is one of three energy retailers in Australia controlling 80% of the market. The other two being Energy Australia and AGL Energy Limited (ASX: AGL).

The retail business is relatively stable, where each of the three players essentially owns similar percentages in market share. The retail energy market in Australia is also highly regulated, so significant future growth from this segment is restricted.

Origin Energy’s LNG business on the other hand, is a volatile yet potentially highly lucrative business. The company’s flagship is its 37.5% stake in a company called Australia Pacific LNG (APLNG), a major liquefied natural gas exporter in Queensland. 

How has the Origin Energy share price performed in 2020

Origin Energy delivered a flat underlying profit of $1,023 million in FY 2020. 

In its latest guidance to the market in November, the company continues to expect underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of between $1,150 million to $1,300 million for FY21. This is down 11% to 21% from $1,459 million in FY 2020.

The Origin Energy share price has fallen by more than 42% this year as the coronavirus pandemic took a toll on its export business.

The share price has a 52-week high of $8.82 reached in January, and a low of $3.75 reached in March.

At this price level, Origin commands a market cap of $8.63 billion.

More reading

• Top brokers name 3 ASX shares to sell next week
• AGL (ASX:AGL) shuts coal power unit after serious injury
• Leading brokers name 3 ASX shares to sell today
• Is AGL (ASX:AGL) really offering a 7% dividend yield today?
• Which ASX 200 sectors performed the best in November? 

Motley Fool contributor Eddy Sunarto 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 NIB Holdings Limited (ASX: NHF) share price is pushing higher on Monday after releasing an update on its premium increases for 2021.

At the time of writing, the private health insurer’s shares are up 2.5% to $5.76.

What did NIB announce?

This morning NIB announced that private health funds across Australia have received approval from the Federal Minister for Health for changes to private health insurance premiums.

According to the release, NIB has received approval from the Minister to increase its insurance cover premiums for NIB health funds by an average of 4.36% across all products. These changes will come into effect on 1 April 2021.

This is a larger than normal increase for NIB. Over the last three years, the company’s average premium increase was 3.55%.

However, NIB’s Managing Director, Mark Fitzgibbon, believes the larger than average increase is necessary to ensure members can access medical treatment when and where they need it.

Mr Fitzgibbon commented: “Premium changes are never welcomed but the reality is that the cost of medical treatment continues to rise well above inflation and we’re increasingly seeing members access healthcare services with health insurance a critical funding tool enabling treatment and care.”

“A perfect example is the concerning increase in members accessing member health services. In the 12 months to 30 September 2020 mental health benefits totalled $48.8 million,” he added.

Competitive pricing.

The Managing Director believes that NIB’s products are still both competitive and affordable, particularly given that this increase comes from a lower premium base compared to the industry average.

He notes that following the 1 April 2021 premium increase, NIB’s annual average premium per single equivalent unit will be $2,844. This compares to the industry average of $3,119.

Elsewhere, rival Medibank Private Ltd (ASX: MPL) has delivered its lowest premium increase in two decades this morning.

It revealed that it has received approval to increase Medibank and AHM health insurance premiums by an average of 3.25% from 1 April 2021.

More reading

• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200
• Macquarie’s model portfolio of ASX stocks to hold in the post-COVID recovery

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB 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 Next Science Ltd (ASX: NXS) share price is surging higher today. This comes after the company announced it has received CE mark approval for its product, BlastX. At the time of writing, the Next Science share price is up 5.04% to $1.25.

BlastX is an antimicrobial wound gel that uses the company’s biofilm-disrupting Xbio technology. BlastX works by breaking down the protective layer of biofilm and eliminating the bacteria. It then maintains a moist wound environment which allows the healing process to begin.

The product is ideal for the treatment of chronic wounds such as diabetic foot ulcers, bed sores (pressure ulcers) and venous leg ulcers. In addition, BlastX is used in operating theatre environments to help prevent infections in acute and surgical wounds.

Let’s take a look and see what is moving the Next Science share price today.

What’s driving the Next Science share price?

The Next Science share price is on the rise after the company advised the CE mark approval in Europe will enable it to now apply to sell BlastX in each market in the European Union and United Kingdom.

In an independent study published in 2015, the company demonstrated that using its BlastX product with custom antibiotics worked effectively. The speed of healing in choric wound closures increased by 40% in 4 weeks. This was conducted over a 4-week randomised trial with 45 patients and compared with customised antibiotic treatment on its own.

The advanced wound care market in Europe is estimated to be around US$2.8 billion per year, growing 4.5% annually. According to Next Science, as population centres expand, so too does the market value for collective BlastX and antibiotic treatment.

At the moment, BlastX is being sold by 3M in the world’s largest healthcare market, the United States.

Management remarks

Next Science managing director Ms Judith Mitchell commented:

The receipt of a CE Mark approval for BlastX represents the successful conclusion of three years of work and marks a major milestone for Next Science as we pursue our mission to heal patients and save lives worldwide by reducing the impacts of biofilms on human health. The CE Mark is a minimum requirement for many other jurisdictions so we can now work on further approvals.

Return of revenue

In a further update, Next Science stated it is witnessing a return of revenue run rates in the fourth quarter. The current levels are matching those of the prior corresponding period.

Furthermore, the company believes, should the US Food and Drug Administration (FDA) approve its surface disinfectant, Xperience, this will also positively impact earnings. Next Science is resubmitting its 510(k) application for approval of Xperience by the end of the year.

Negotiations for licencing are ongoing, and it is anticipated these will be finalised some time in the first quarter of 2021.

About the Next Science share price

The Next Science share price has been trending lower since the beginning of the year, down nearly 35%. The company’s shares reached an all-time high of $2.76 in late January before the COVID-19 selloff hit. In March, the Next Science share price fell to an all-time low of $1.00.

More reading

• Why the Next Science (ASX:NXS) share price dropped 9% today

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 Nexus Energy Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 3M. 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 Next Science (ASX:NXS) share price is 5% higher today appeared first on The Motley Fool Australia.

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