The Emerge Gaming Ltd (ASX: EM1) share price is rocketing today, up 19.4% at the time of writing to 8 cents. Emerge Gaming shares closed at just 6.7 cents yesterday, but opened at 7 cents today after a brief trading halt (more on that later), and climbed even higher afterwards, hitting 8.6 cents a share at one point.

Today’s move caps off what has been a wild few months for Emerge Gaming shares. As recently as May 2020, the company’s shares were trading for just 1 cent apiece. However, the shares spiked back in October, climbing as high as 19 cents, representing a year-to-date gain of 600% and a 1,300% gain since 25 May. On today’s prices, Emerge shares are still up 305% year to date, but also down more than 42% from October’s highs.

So what is Emerge Gaming? And why are the company’s shares going ballistic today?

What does the company do?

Emerge Gaming is a company placing itself in the middle of the eSports market. eSports refers to the ‘sport’ of competitively playing video games. Emerge claims this market is projected to grow to US$1.48 billion in terms of revenue this year.

According to Emerge, it is “changing the eSports gaming landscape” with its flagship ‘Arcade X’ platform for eSports tournaments.

Arcade X reportedly offers players a “unique and mature gaming experience” through a “hybrid environment” which offers access to both casual and eSport gaming. Emerge states that “with top of the line technological integrations and explored user experiences, it [Arcade X] is without a doubt going to change the way the corporate world and gaming world engage in the future”. This platform has apparently been in operation for two years, and has close to 40,000 registered users from around the world.

Emerge also offers a gaming and mobile platform called ‘Cloudzen’ as an “entertainment platform as a service”. Cloudzen offers “various means of communication channels” through game stores, gaming communities and social networking.

However, the company has been in the news for the wrong reasons of late. Just last week, Emerge shares crashed 50% on news that one of the company’s platforms – ‘Miggster’ – had managed to sign up just 25,764 subscribers after attracting more than 6 million ‘pre-registrations‘.

Why is the Emerge share price rocketing today?

Today’s massive spike in the Emerge share price appears related to an ASX announcement the company released just after market open this morning. In this announcement, Emerge told investors a platform called ‘MTN Arena’ has registered 80,000 new subscribers in South Africa since its launch back in July of this year. MTN Arena is owned by the MTN Group, a public company listed on the Johannesburg Stock Exchange. However, it is operated by Emerge Gaming software.

Emerge and MTN inked an agreement to “distribute, market and operate Emerge’s platform technology under the brand “MTN Arena” in South Africa” back in June.

These MTN Arena subscribers are monetised as well, with the use of MTN Arena apparently costing subscribers 3 South African rand (or roughly 26 cents) a day (or $7.80 a month). Emerge reportedly earns 40% of the “net revenue” of this arrangement.

Further, Emerge told investors the two companies are continuing to aggressively market MTN Arena to the “circa 29 million MTN subscribers in South Africa”. This is being executed through paid media campaigns, specifically:

…targeted digital campaigns across multiple digital channels and bulk SMS… These campaigns target the middle to low-income mass market promoting tournaments, competitions and prizes through key messaging, video and other digital content in the distribution channels.

It appears investors like what they hear with this update, judging by the performance of the Emerge share price today.

More reading

• Why Emerge Gaming, Flight Centre, Medical Dev International, & Tyro shares are dropping lower
• The Emerge Gaming (ASX:EM1) share price is on a rollercoaster ride today
• Why Abacus, Emerge Gaming, Jumbo, & Woodside shares are dropping lower
• Why the Emerge Gaming (ASX:EM1) share price crashed 50% lower today

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

The post ASX stock of the day: Emerge Gaming (ASX:EM1) shares rocket more than 20% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3oX64ta

Of ASX cannabis shares, Creso Pharma Ltd (ASX: CPH) shares have taken the spotlight recently after running more than 300% this month. Today, however, at the time of writing, the Creso share price has fallen 4.17% to 23 cents. This comes despite the company announcing that its subsidiary, Mernova, has secured a supply agreement with the Ontario Cannabis Retail Corp. 

Historic milestones for cannabis this month 

In addition to the surging Creso share price, other ASX cannabis shares have also delivered better than double digit returns following historic legal milestones for the consumption of cannabis this month. Earlier in December, the United Nations Commission on Narcotic Drugs (CND) voted to accept the World Health Organisation’s (WHO) recommendation to reschedule cannabis.

The passage came under the WHO recommendation, which recognised the medical value of cannabis, and will see the product removed from Schedule IV of the 1961 Convention. Schedule IV is reserved for substances with “particularly dangerous properties” and little or no therapeutic value. The vote acknowledges the medicinal usefulness of cannabis and clarifies that CBD is not under international drug control. 

This also follows the landmark ruling from the European Union’s highest court, the Court of Justice of the European Union. It ruled that cannabidiol is not a narcotic as it does not appear to have any psychotropic effect or harmful effect on human health. 

Creso share price falls despite new agreement

The Creso share price is dropping lower today despite the company announcing its wholly owned subsidiary, Mernova, has secured the Ontario Cannabis Retail (OCR) Corporation supply agreement. Ontario is Canada’s largest recreational cannabis market and the region’s monthly revenues from cannabis sales during September 2020 were C$77.9 million. This represents over 30% of Canada’s total monthly sales volume of cannabis. 

Under the agreement, Mernova will supply OCR with a range of its high quality, artisanal cannabis strains HPG13, Lemon Haze and Minosa. Its products will be sold through established stores and through the OCR online sales platform. 

Mernova Managing Director Jack Yu had this to say of the agreement:

This is a huge step forward towards selling our high quality products in Canada’s largest market. To be able to compete in a market with over C$385m in sales between April 2019 and March 2020, which continues to grow, as evidenced by over $80m in sales this past September alone, is a huge opportunity for us and we look forward to firmly establishing ourselves as one of the premier cannabis producers in the country.

More reading

• Creso Pharma and Nuix were among the most traded shares on the ASX last week
• ASX pot stocks have been skyrocketing in December
• Why the Creso Pharma (ASX:CPH) share price crashed 33% lower today
• Why the Creso Pharma (ASX:CPH) share price is rocketing 96% higher today
• Why Afterpay, Creso Pharma, Healius, & Resonance Health shares are storming higher

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

The post Creso Pharma (ASX:CPH) share price lower despite supply agreement news appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2WwVFIx

This week a large number of dividend favourites announced their interim distribution guidance for FY 2021.

Here’s a summary of what income investors can expect from these ASX shares:

APA Group (ASX: APA)

This energy infrastructure company revealed that it expects to pay shareholders an interim distribution of 24 cents per share for the six months ending 31 December 2020. This represents a 4.3% increase over FY 2020’s interim distribution. It will be paid to shareholders on 17 March 2021.

Aventus Group (ASX: AVN)

Retail park operator Aventus announced a quarterly distribution of 4.2 cents per share for the December quarter. This is 5% higher than the previous quarter and brings its first half distribution to 8.2 cents per share. Shareholders will be paid this distribution on 24 February.

BWP Trust (ASX: BWP)

This Bunnings Warehouse landlord expects to pay shareholders an interim distribution of 9.02 cents per share on 26 February. This is flat on last year’s interim distribution. Annualised, this equates to a 4.1% distribution yield.

Centuria Capital Group (ASX: CNI)

Commercial property fund Centuria Capital intends to pay an interim distribution totalling 4.5 cents per share for the year ending 31 December 2020. This is in line with its recently upgraded distribution guidance of 9 cents per share for the full year. This represents a forward 3.7% yield.

Mirvac Group (ASX: MGR)

This property company announced that it will pay shareholders a 4.8 cents per share distribution for the first half. This is down 21% on the prior corresponding period. Shareholders will be paid the distribution on 1 March.

National Storage REIT (ASX: NSR)

Leading self-storage operator National Storage announced plans to pay a 4 cents per share interim distribution to shareholders on 1 March. This is down from a 4.7 cents per share distribution a year earlier.

Vicinity Centres (ASX: VCX)

Finally, this shopping centre operator plans to pay shareholders an interim distribution of 3.4 cents per share for the six months ending 31 December 2020. This is a 55% reduction on the same period last year. COVID-19 has weighed heavily on its bottom line and ultimately its distributions.

More reading

• 3 ASX shares that keep growing their dividends every year
• 2 ASX shares with generous dividend yields
• 2 high quality ASX shares for your retirement portfolio
• 2 ASX dividend shares to buy this week
• Quarterly rebalance: Afterpay (ASX:APT) added to ASX 20, Kogan (ASX:KGN) joins the ASX 200

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s what these popular ASX dividend shares plan to pay investors in 2021 appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3np7xrL

Following October’s budget announcement, the mid-year economic and fiscal outlook (MYEFO) is scheduled to take place this Thursday (17 December 2020).

The outlook will be delivered by Treasurer Josh Frydenberg. During his commentary, Mr Frydenberg will discuss what the economy has done since October, the current state of affairs, and what parliament predicts to be on the horizon.

Considering the way that economies worldwide continue to navigate the global coronavirus pandemic, this year’s MYEFO discussions might be more interesting to listen to than last year’s were.

So what’s been going on?

As the MYEFO approaches, the Australian Financial Review (AFR) reports economists are widely expecting an improvement of $14 billion or more in the budget’s bottom line.

Their speculation is commonly based off of recent gains in the price of iron ore, which significantly exceeded Treasury’s previous estimates. This is a particularly welcomed benefit to receive, considering the current trade war with China.

Following the spike in unemployment experienced earlier this year, positive job data was released by the Australian Bureau of Statistics on 15 December. The slight increase in the payroll jobs number supports other recently published, positive economic indicators like an increase in consumer confidence. These combined factors often lead to an economy on the up. Mr Frydenberg’s insights tomorrow should help connect the dots.

Finance or philosophy?

While economic analysis and predictions add colour to underlying business environments, everyone’s takeaways are bound to vary. From a share market perspective, volatility can be expected regardless of government statements or statistics.

That said, if you’re someone interested in big-picture perspectives, you might enjoy hearing about what comes out of the MYEFO tomorrow.

Tuning in to Mr Frydenberg’s comments will shed light on how Australia continues to manage China’s backlash and steer through the pandemic. It will provide updated economic forecasts and share the government’s insight on what recovery looks like moving forward.

If this makes your ears perk up, tune in! If not, rely on your reporter friends to disperse the best bits.

More reading

• Why the Codan (ASX:CDA) share price is surging 5% higher today
• ASX 200 up 1.1%: ANZ AGM, Resolute jumps, travel shares soar
• The Commonwealth Bank (ASX:CBA) share price is climbing higher today. Here’s why.
• The ASX bank with the best dividend yield under APRA’s new guidelines
• Why the Beacon Lighting (ASX:BLX) share price is on watch today

Motley Fool contributor Gretchen Kennedy 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 Should I care about this week’s mid-year economic and fiscal outlook? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Kv1xim

The corporate regulator has slammed airline Regional Express Holdings Ltd (ASX: REX) for “continuous disclosure failures” to shareholders and the ASX.

The Australian Securities and Investments Commission (ASIC) on Wednesday slapped a one-year ban on the company from issuing reduced-content prospectuses to raise money on the ASX.

Regional Express must now produce a full prospectus to ask investors for further cash.

The corporate regulator didn’t mince words in explaining the prohibition.

“ASIC’s decision was based on REX’s failure to disclose to the market that it was considering the feasibility of commencing domestic operations, such as flying to capital cities, in addition to its regional operations,” stated the commission.

“This information was first released publicly to a journalist on 11 May 2020.”

What did Rex do exactly?

The incident refers to Rex deputy chair John Sharp’s interview with the Australian Financial Review, where he revealed a new $200 million plan to start flying between Sydney, Melbourne and Brisbane.

Up until then, Regional Express had flown between regional and rural destinations and never directly competed with the likes of Qantas Airways Limited (ASX: QAN) and Virgin Australia.

After the publication of that article, Regional Express was forced to place a trading halt on its shares. The next day it made an official announcement to the ASX revealing the $200 million initiative.

The Motley Fool has requested comment from Regional Express.

ASIC stated that the use of a reduced-disclosure prospectus was “a privilege” conditional on legal compliance, including meeting market disclosure responsibilities.

Ironically the reprimand failed to dampen investor enthusiasm for Rex shares. 

The Rex share price was up 9.14% at 2.30pm AEDT on Wednesday, in response to the company’s receipt of a High Capacity Air Operator’s Certificate from the Civil Aviation Safety Authority.

This means the airline is another step closer to competing in the lucrative capital city routes, which it plans to do from 1 March.

More reading

• Why Beacon Lighting, Flight Centre, REX, & Resolute Mining are shooting higher
• Why the Regional Express (ASX:REX) share price is soaring 10% higher today
• Qantas (ASX:QAN) budget flights to exceed pre-COVID levels by March
• Why the Regional Express (ASX:REX) share price is flying higher today
• Regional Express (ASX:REX) share price soars to 13-year high

Motley Fool contributor Tony Yoo owns shares of Qantas Airways 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.

The post REX told off for blabbing to media rather than ASX appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2KcdqKi

The Codan Limited (ASX: CDA) share price is surging higher after the company announced a robust trading performance for the first 4 months of the 2021 financial year.

At the time of writing, the Codan share price is up 4.9% to $10.05. The S&P/ASX 200 Index (ASX: XJO) is also having a strong day today, currently up 1.3% at 6,718 points.

Codan designs and manufactures a range of electronic products and software to governments, businesses, aid and humanitarians, and customer markets. The company’s 3 main products are radio communication, metal detection, and tracking solutions.

What’s driving the Codan share price higher?

In today’s release, Codan advised that demand has been strong for its metal detectors, in both recreational and mining markets .

Management noted that an array of internal changes led to the company achieving growth. This included the expansion into new geographical areas, increased distribution into retail channels, and investment in its manufacturing capacity.

Codan said the positive result has offset its tactical communications business which is significantly down this year.

In light of this, the board expects a net profit after tax of $40 million for the first-half of the 2021 financial year.

While it stopped short of making second-half projections, the group believes a stronger period awaits. This comes as the company is gearing up to launch its new packed detector in the third quarter of FY21.

In addition, the company has an order book of more than $30 million in its communications business due in the second half of FY21.

Codan share price summary

The Codan share price has been a solid performer over the past 5 years, reflecting gains of more than 1,300%. Patient shareholders who kept hold for that period would have effectively turned every $1,000 invested into $13,000. Indeed, Codan has comfortably blown away the S&P/ASX 200 Index, which has a 31% return over the same timeframe.

Codan has a market capitalisation of $1.8 billion and a price-to-earnings (P/E) ratio of 28.6.

More reading

• ASX 200 up 1.1%: ANZ AGM, Resolute jumps, travel shares soar
• The Commonwealth Bank (ASX:CBA) share price is climbing higher today. Here’s why.
• The ASX bank with the best dividend yield under APRA’s new guidelines
• Why the Beacon Lighting (ASX:BLX) share price is on watch today
• Here’s how ASX 200 bank shares have performed in 2020 so far

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 Codan (ASX:CDA) share price is surging 5% higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2KosJPX

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

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

Altium Limited (ASX: ALU)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $40.00 price target on this electronic design software provider’s shares. The broker was pleased to see that Altium recently reaffirmed its FY 2021 guidance despite the tough operating environment. In addition to this, Morgan Stanley notes that management spoke positively about its new Altium 365 platform. This is a big positive as the cloud-based platform is expected to be a key driver of its growth in the future. The Altium share price is trading at $33.92 this afternoon.

BHP Group Ltd (ASX: BHP)

Analysts at Ord Minnett have retained their buy rating and $50.00 price target on this mining giant’s shares. The broker has lifted its forecasts for a number of commodities notably higher, which it feels bodes well for BHP in 2021. So much so, the broker is forecasting a fully franked ~$2.39 dividend in FY 2021. Based on the current BHP share price of $42.78, this represents a 5.6% dividend yield. Combined with its price target, BHP’s shares offer a potential return in excess of 22% over the next 12 months.

Challenger Ltd (ASX: CGF)

A note out of UBS reveals that its analysts have reinstated coverage on this annuities company’s shares with a buy rating and improved price target of $6.85. Although the Challenger share price has recovered well after being hammered at the height of the pandemic, the broker still sees meaningful upside. It also believes the risks are now to the upside in respect to Challenger’s earnings, especially given favourable regulatory developments. The Challenger share price is trading at $5.93 on Wednesday.

More reading

• Brokers warning high iron ore prices are unsustainable
• Will China’s trade war torpedo the Rio, Fortescue and BHP share prices?
• ASX 200 down 0.1%: APRA removes bank dividend restrictions, Fortescue slides, Zip higher
• Why Althea, Altium, Fortescue, & Retail Food Group are dropping lower
• Is the Altium (ASX:ALU) share price in the buy zone?

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 Altium. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3r2LI3i

Facebook Inc (NASDAQ: FB) faces legal action in the Australian Federal Court, accused of “false, misleading or deceptive conduct”.

The Australian Competition and Consumer Commission (ACCC) announced on Wednesday it has started proceedings against the US company and two subsidiaries.

The allegations involve the promotion of Facebook’s ‘Onavo Protect’ smartphone app.

The consumer watchdog accuses the social media giant of spruiking the app as a way to protect private data – when in reality it was harvesting data for commercial purposes.

“Facebook was collecting and using the very detailed and valuable personal activity data of thousands of Australian consumers for its own commercial purposes, which we believe is completely contrary to the promise of protection, secrecy and privacy that was central to Facebook’s promotion of this app,” said ACCC chair Rod Sims.

Onavo Protect was promoted as a virtual private network (VPN) tool, which is commonly used by individuals and workplaces to encrypt and anonymise internet activities.

The app’s marketing used phrases like “save, measure and protect” and the slogan “Keep it secret. Keep it safe”.

“Consumers often use VPN services because they care about their online privacy, and that is what this Facebook product claimed to offer,” Sims said.

“In fact, Onavo Protect channelled significant volumes of their personal activity data straight back to Facebook.”

ACCC is seeking orders and penalties from the court.

Facebook says it was ‘always clear’

A Facebook spokesperson told The Motley Fool that the company has co-operated with ACCC’s investigation “to date”.

“When people downloaded Onavo Protect, we were always clear about the information we collect and how it is used,” said the spokesperson.

“We will review the recent filing by the ACCC and will continue to defend our position in response to this recent filing.”

It is understood Apple Inc (NASDAQ: AAPL) deleted the Onavo Protect from its app store in 2018 for not complying with terms and conditions. The violations included harvesting data about other apps on the device to perform analytics.

The Australian court case adds to Facebook’s already substantial legal woes. 

The US Federal Trade Commission earlier this month started court action alleging the company is maintaining an “illegal” monopoly.

That court filing accuses Facebook of using data collected from Onavo Protect to identify potential future acquisitions.

More reading

• With the high Aussie dollar, is now a good time to buy US shares?
• Here are the US shares ASX investors are buying
• Zip (ASX:Z1P) share price pushes higher on Facebook deal
• Facebook allegedly crossed a line in buying up the competition
• Apple stock could surge 61% to $200, according to this analyst

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. Tony Yoo 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 Facebook. The Motley Fool Australia has recommended Apple and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ACCC hauls Facebook to court for ‘deceptive’ conduct appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37lusOY

Analysts at UBS Bank say that breaking up AMP Ltd (ASX: AMP) into separate businesses will not generate any increased value for shareholders.

This comes after AMP advised it was undergoing a portfolio review, following a takeover bid by American company Ares Management in November.

The AMP share price is currently trading at $1.735, which is below Ares’ offer price of $1.85.

What did the analysts at UBS say?

Broker UBS said breaking up the financial services company was a bad idea and would not generate increased shareholder value. UBS analysts, in their presentation to clients this morning, said that “stranded costs and capital dissynergies will likely dilute any higher value asset sales”. 

Regarding AMP’s portfolio review, the broker said “the sum-of-the-parts valuation for many financial services companies is worth less than the sum of the whole, as demonstrated in recent transactions across financial services, with significant separation costs and capital dis-synergies often underestimated”.

The broker gave the example of the $3 billion sale of AMP Life to Resolution Life back in July. According to the analysts, that sale was years in the making before it was finally agreed, but “disappointed when it came to capital releases and capital management”.

What’s been happening at AMP?

AMP has experienced a difficult 2020, which included a sexual harrassment lawsuit brought by a former employee. That lawsuit ended in a parliamentary inquiry with chief executive Francesco De Ferrari appearing for questioning in September, and insisting there was no systemic cultural problem at AMP.

AMP’s reputation as one of Australia’s oldest and most trusted wealth managers also took a potentially fatal hit during the 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. 

The subsequent appointment of Mr De Ferrari shortly after the conclusion of that commission was supposed to herald a turnaround for the company. 

However, AMP seemed to raise the white flag earlier this year when it declared all parts of its business open for a possible sale. 

This has atttracted multiple potential buyers, with Ares Management making the first move in November by offering a cash and scrip offer of $1.85.

About the AMP share price 

The AMP share price started the year at $1.92, before plunging to $1.08 in March – its 52-week low.

The share price jumped and has since supported itself at the current level when the Ares’ offer was announced.

The company commands a market cap of $5.96 billion.

More reading

• How to protect your super fund when you’re approaching retirement
• What can ASX investors expect in 2021? AMP Capital’s top thinkers offer their insights
• The sector that’ll explode in February: fundie
• Macquarie (ASX:MQG) share price lags on $2.3bn takeover
• IOOF (ASX:IFL) share price lifts after investor briefing

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.

The post AMP (ASX:AMP) is more valuable as a whole than in parts: Broker appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/389icjH

Ellume, a small Brisbane-based private biotech company, is in the news today. And for good reason – Ellume has just received an endorsement from the all-powerful United States Food and Drug Administration (FDA).

According to reporting in The Australian today, Ellume has been working on rapid diagnostic technology over the past 10 years and has developed a test for COVID-19 infection. This test, which costs around US$30 and can reportedly detect traces of coronavirus within 20 minutes, is apparently bound for America. The test has a 94% “sensitivity” for detecting the virus. It is also 96% effective for identifying negative cases. Those statistics are according to clinical trials of the test.

The Australian reports that, following endorsement from the FDA, Ellume is about to send “more than 100,000 of its tests” to the United States, beginning “at the start of next month”. Ellume plans on delivering more than 5 million tests each month to the United States by March next year.

Ellume in FDA spotlight

The FDA is often touted as one of the strictest pharmaceutical regulators in the word. It has called Ellume’s test a “major milestone in diagnostic testing for COVID-19”.

The report quotes FDA commissioner Dr. Stephen M. Hahn on Ellume’s approval:

By authorising a test for over-the-counter use, the FDA allows it to be sold in places like drug stores… A patient can buy it, swab their nose, run the test and find the results in as little as 20 minutes…

As we continue to authorise additional [Ellume] tests for home use, we are helping expand Americans’ access to testing, reducing the burden on laboratories and test supplies, and giving Americans more testing options from the comfort of their own home.

The US government has reportedly “injected” US$40 million into Ellume to assist with this process and accelerate production of the testing kits. According to Ellume chief executive Dr. Sean Parsons, this money is going towards adding “50 people a week to [Ellume’s] 250-person workforce”.

Dr. Parsons also told The Australian the company expects this development to “generate an expected 20-fold increase in revenue for Ellume”.

Even though the US Government has given Ellume the green light, there are no signs that our Australian Government will follow suit. As such, it seems we will have to wait a lot longer than the Americans for access to this technology.

This positive development for Ellume could also explain why some ASX biotech shares, such as Memphasys Ltd (ASX: MEM), are performing well today. It’s certainly a good news story for a small Aussie company.

More reading

• 3 key takeaways from the ANZ annual general meeting
• 3 things you’ll want to know when Nike announces earnings
• Why Mesoblast, Pilbara Minerals, Pushpay, & Retail Food Group shares are dropping lower
• Brokers warning high iron ore prices are unsustainable
• Service Stream (ASX:SSM) share price falls despite NBN agreement

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

The post Here’s why Ellume is making big news today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3npxDef