There are some ASX small cap shares worth buying and owning according to fund manager Naos Asset Management.

What is Naos Asset Management’s investment approach?

Naos is led by chief investment officer (CIO) Sebastian Evans. NAOS Small Cap Opportunities Company Ltd (ASX: NSC) is one of the listed investment companies (LIC) operated by Naos.

That particular LIC looks at businesses with market capitalisations between $100 million and $1 billion.

The fund manager has a number of investment focuses. It looks for businesses that are good value with long term growth potential. With its portfolio, Naos believes it’s better to have a quality portfolio rather than numerous holdings. That’s why it only holds around 10 positions in each fund, with each ASX share representing a high-conviction position.

Naos invests in the small cap ASX shares for the long-term. It considers the performance and the liquidity of its positions whilst ignoring the index. Performance can sometimes be quite variable when compared to the index.

It looks to invest purely in industrial companies whilst also considering the ESG factors (environmental, social and governance).

Eureka Group Holdings Ltd (ASX: EGH)

Naos says that Eureka Group is a provider of quality and affordable rental accommodation for independent seniors within a community environment. Eureka owns 30 villages and manages a further nine villages with a total of 2,147 across Queensland, Tasmania, South Australia, Victoria and New South Wales.

The ASX small cap share recently held its annual general meeting (AGM) and gave a market update in early November which included FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) guidance of $9.8 million to $10.2 million. This would be an increase of 21% to 26% compared to the prior corresponding period. Occupancy has remained above 95% and the business continues to sell non-core assets, which will provide the funding for organic growth and acquisition opportunities.

The fund manager believes Eureka has multiple levers that can be pulled to help earnings growth at a significant rate going forward, and when overlaid with the current industry tailwinds, Naos thinks Eureka will be highly attractive to investors, particularly in this low interest environment.

COG Financial Services Ltd (ASX: COG)

The financing business also held its AGM and gave an update about its strategy going forward. It’s still focused on its broking and aggregation business, particularly the insurance broking, as COG brokers have a close relationship with clients and have the ability to meet their financing needs.

The ASX small cap share also provided disclosure about the software that allows COG brokers to have real time data on their entire client base together with real-time quoting and application functionality. Naos believes this is key for COG as some of the brokers it owns may have 10,000 active SME clients that will have a number of financing and insurance needs in any given year.

Naos also thinks that a merger with Earlypay Ltd (ASX: EPY) – formerly CML Group – would also be beneficial if done at the right time.

Big River Industries Ltd (ASX: BRI)

This is a business that’s a diversified manufacturer and distributor of timber and building products. It sells softwood and hardwood formply and structural plywood products, consumable formwork products and it’s a national merchant of timber and associated building products to local trade, medium sized and enterprise sized companies.

Naos pointed out that Big River Industries was recently successful in applying for a $10 million grant for recovering from the bushfires. The grant will allow the ASX small cap share to close the manufacturing facility in Wagga Wagga and move this capability into the newer facility in Grafton.

The fund manager likes this because it will reduce the exposure to more commodity-type manufactured goods and allow the company to continue to focus on the distribution model with a focus on higher value products. The closure in the site could lead to a significant reduction in working capital and potential upside from land sale proceeds.

More reading

• Why the Earlypay (ASX:EPY) share price rocketed up 7% last week

Motley Fool contributor Tristan Harrison owns shares of NAO SMLCAP FPO. 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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2020 has been a defining year for ASX dividend shares. In a sense, those companies that pay dividends (or at least used to) have had a ‘wheat from the chaff’ kind of year.

We have seen shareholder income from some ASX dividend shares slashed or dried up entirely. Many of these were previously well-known for their dividends, such as Westpac Banking Corp (ASX: WBC) and Ramsay Health Care Limited (ASX: RHC). But some others managed to ride it out, or even grow their dividends.

So here are 5 ASX dividend shares that offer the prospects of dividend income in 2021:

Telstra Corporation Ltd (ASX: TLS)

The ASX’s largest telco, Telstra has long had a reputation for dividend payments, despite its infamous payout slash a few years ago. The company has managed to maintain its 16 cents per share annual dividend in 2020 however, and has indicated it plans on continuing this payout in 2021. If that indeed comes to pass, it means Telstra shares’ trailing dividend yield of roughly 5.25% on current pricing looks set to continue into next year.

Coles Group Ltd (ASX: COL)

Coles has had an interesting year. It was an unexpected beneficiary of the mass-panic hoarding of groceries earlier in the year, and has benefitted from strong sales since. This enabled Coles to increase its 2020 dividends compared to 2019’s payouts. Coles is currently offering a rough trailing yield of 3.2%.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is another ASX dividend share that has held up well this year. The owner of the Bunnings, OfficeWorks and Kmart chains has paid out 2 ordinary dividends (75 and 77 cents per share respectively) as well as a special dividend of 18 cents per share. That gives this industrial conglomerate a rough trailing yield of 3.42% today.

Rural Funds Group (ASX: RFF)

Rural Funds is an agriculture-based real estate investment trust (REIT). It owns a portfolio of farmland, on which foods such as grapes, nuts and cattle are grown or produced. It has also paid out 2 dividend distributions in 2020, which were higher than the 2 payments 2019 saw. That gives Rural Funds’ shares an approximate trialling yield of 3.85% on current prices, although these payments don’t come with franking credits attached. 

Washington H. Soul Pattinson & Co Ltd (ASX: SOL)

‘Soul Patts’ holds the distinguished title of the ASX dividend share with the best record of consecutive dividend increases. Another industrial conglomerate, Soul Patts has grown its dividend every single year since 2000. This includes 2020, which saw the company bump its payout by 9.4% to 60 cents a share. That gives Soul Patts a rough trailing yield of 1.98% on current pricing.

More reading

• Aussie dollar breaking to new 30-month high will boost these ASX stocks
• JB Hi-Fi (ASX:JBH) share price lifts today on broker rating upgrade
• 2 ASX dividend shares with attractive yields to buy
• ASX 200 up again on Wednesday
• Why ‘ASX dividend king’ Soul Patts (ASX:SOL) is a top income share for 2021

Motley Fool contributor Sebastian Bowen owns shares of Ramsay Health Care Limited, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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If you have room in your portfolio for a growth share or two, then you might want to take a look at the three listed below.

All three have been named as buys and tipped to deliver strong growth over the coming years. Here they are:

Appen Ltd (ASX: APX)

Appen provides and prepares the data that goes into the artificial intelligence (AI) and machine learning models of some of the biggest tech companies in the world. This includes Amazon, Facebook, Google, and Microsoft. Given the increasing amount of investment being made by businesses on AI, Appen has been growing at a very strong rate over the last few years.

Unfortunately, COVID-19 has impacted the priorities and activities of its major customers and put many major projects on the backburner. However, management is confident that things will return to normal once the pandemic passes.

One broker that believes the recent weakness in the Appen share price is a buying opportunity is UBS. Last week its analysts retained their buy rating and $44.00 price target on its shares following its trading update.

REA Group Limited (ASX: REA)

REA Group is the property listings company behind the market-leading realestate.com.au website. It also owns and operates several international equivalents and recently increased its stake in India-based Elara Technologies.

It has been a strong performer over the last few years despite the housing market downturn and even the pandemic. So, with the housing market tipped to rebound in 2021, its outlook is looking particularly rosy.

Analysts at Morgan Stanley certainly believe this is the case. Thanks to a combination of price increases, volume growth, and good cost control, the broker believes REA Group is well-positioned for growth. It has an overweight rating and $150.00 price target on its shares.

Zip Co Ltd (ASX: Z1P)

Zip is a leading buy now pay later provider with operations across several key markets such as Australia, the United Kingdom, and the United States. Thanks to the growing popularity of the payment method, the decline in credit card usage, and its international expansion, Zip has been growing its customer and sales numbers at a rapid rate.

The company has been tipped to continue its strong growth thanks to the positive industry tailwinds and new product launches. This includes Zip Business and its Tap & Zip product.

Morgans is very positive on its outlook. Last month it retained its add rating and lifted its price target slightly to $9.80.

More reading

• These were the worst performing ASX 200 shares last week
• ASX 200 drops on Friday
• Why JPM just upgraded the beaten-down Appex (ASX:APX) share price to “buy”
• Brokers name 3 ASX shares to buy right now
• ASX 200 down 0.3%: CSL sinks, Zip’s Facebook deal, IGO rockets

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 Appen Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Last week the S&P/ASX 200 Index (ASX: XJO) fought hard and was able to extend its winning streak to six consecutive weeks. The benchmark index rose 0.1% to finish the period at 6,642.6 points.

While a number of shares climbed higher with the market, some recorded stronger gains than others.

Here’s why these were the best performers on the ASX 200 over the period:

IGO Ltd (ASX: IGO)

The IGO share price was the best performer on the index last week with a 24.2% gain. Investors were buying this nickel producer’s shares after it completed its institutional placement and entitlement offer. IGO raised a total of $707 million at a 9.7% discount of $4.60 in order to expand into the lithium market. The company has signed an agreement to acquire a 49% stake in Tianqi Lithium Energy Australia from China-listed Tianqi Lithium Corporation.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price was on form and surged 12.2% higher over the five days. The catalyst for this was news that the administration services company has received a second takeover approach. SS&C Technology has tabled an offer of $5.65 per share. This represented a 13.9% premium to Link’s last close price. It was also higher than the offer made by a consortium comprising Pacific Equity Partners and Carlyle Group. It is currently conducting due diligence after offering $5.40 per share.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price continued its positive run and climbed a further 11.4% last week. Investors were buying the iron ore producer’s shares after the price of the steel-making ingredient jumped higher again. On Friday the spot iron ore price was fetching a massive US$156.58 a tonne. This compares to Fortescue’s C1 costs guidance of US$13.00 to US$13.50 per wet metric tonne in FY 2021.

Viva Energy Group Ltd (ASX: VEA)

The Viva Energy share price wasn’t far behind with a gain of 9.2% last week. This appears to have been driven by an update relating to its Geelong Energy Hub project. Viva Energy advised that it has selected and entered into memorandums of understanding with two partners in relation to the development of the project and the related capacity in the terminal.

More reading

• These were the worst performing ASX 200 shares last week
• Will China’s tariffs cripple the Aussie economy’s 2021 recovery plan?
• ASX 200 drops on Friday
• I wouldn’t buy this if I was you…
• Why JPM just upgraded the beaten-down Appex (ASX:APX) share price to “buy”

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 Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration 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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This article is about three growing ASX tech shares which could be worth watching.

Here are those ideas:

Serko Ltd (ASX: SKO)

Serko is a business based in New Zealand that specialises in online travel booking and expense management for the business travel market.

It’s a holding of the listed investment company (LIC) WAM Microcap Limited (ASX: WMI). The fund manager said that Serko has benefited from an uplift in travel and the state by state reopening of borders between New Zealand and Australia. Serko recently raised NZ$67.5 million at NZ$4.55 per share to strengthen its balance sheet.

In the recent FY21 half-year result it reported that total operating revenue was down 66% to NZ$5.1 million. Half-year total travel bookings for the period were down 77%, but have since risen to being down 65% for October.

The ASX tech share is predicting that travel volumes will be in the range of 40% to 70% of pre-COVID-19 levels by March 2021. It also recently started a partnership with Booking.com for business, powered by Zeno (which is Serko’s platform).

Altium Limited (ASX: ALU)

Altium is one of the world’s leading electronic PCB software businesses. It offers different software for different sized teams of engineers, with the flagship software offering being Altium Designer.

The business is aiming to be the clear global market leader over the next five years as it aims for 100,000 Altium Designer subscribers. It also has a revenue goal of US$500 million, though this could take a little longer to achieve because of the impacts of COVID-19.

In FY20 the company generated 10% revenue growth, profit before tax grew by 12% to $64.6 million, normalised earnings per share (EPS) went up by 5% and subscribers went up 17%.

In FY21, which has largely been affected by COVID-19 again, Altium is expecting revenue to grow by 6% to 12% to US$200 million to US$212 million whilst earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in a range of US$76 million to US$89 million.

The ASX tech share is heavily focusing on growing its cloud offering, Altium 365, so that engineers can collaborate in the best way. It would also allow Altium to monetise its Altium 365 platform either through transaction fees on manufacturing (like an Airbnb model) and/or premium services (such as the Amazon Prime model).

At the current Altium share price, it’s priced at 46x FY23’s estimated earnings.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This is an exchange-traded fund (ETF) that’s invested in 100 of the largest businesses listed on the NASDAQ, which is a stock exchange in the US.

BetaShares promotes this ETF as a way to “in one trade on the ASX get access to companies like Apple, Amazon and Google, that have changed the way we live.” The ETF provider also points out that the ETF provides diversified exposure to a high-growth potential sector that is under-represented in the Australian share market.

Whilst the ETF, which can be bought on the ASX, doesn’t give exposure to ASX tech shares, it does give exposure to many of the world’s most well-known technology businesses.

Its biggest holdings include: Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet (Google), Nvidia, PayPal, Adobe, Netflix, Intel, Broadcom, Qualcomm and Texas Instruments.

This ETF has delivered outperformance over the long-term. At 30 November 2020, over the prior five years it had delivered an average return per annum of 21.5%.

Betashares Nasdaq 100 ETF has an annual management fee of 0.48%.

More reading

• 2 popular international ETFs for ASX investors to buy
• 3 ASX tech shares to buy for the long term
• 3 quality SaaS ASX shares to buy
• Zip and Creso Pharma were among the most traded shares on the ASX last week
• 2 of the best ASX tech shares you can buy today

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and Serko Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and Serko 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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Last week the S&P/ASX 200 Index (ASX: XJO) managed to keep its winning streak alive and recorded its sixth straight week of gains. The benchmark index rose 0.1% to finish the period at 6,642.6 points.

Not all shares were able to climb higher with the market. Here’s why these were the worst performers on the ASX 200 over the period:

Appen Ltd (ASX: APX)

The Appen share price was the worst performer on the ASX 200 last week with a disappointing 14.5% decline. Investors were selling the artificial intelligence services company’s shares after it downgraded its FY 2020 guidance. Due to COVID-19 headwinds, Appen expects to report full year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $106 million to $109 million (or $108 million to $111 million when applying the originally assumed exchange rate). This is a reduction from its previous guidance of $125 million to $130 million. Management advised that many of its major customers in California have been hit by lockdowns, which has impacted investment decisions.

IDP Education Ltd (ASX: IEL)

The IDP Education share price was out of form and dropped 8.9% lower over the five days. This appears to have been driven by concerns over the impact that the Australia-China trade war could have on the language testing and student placement company’s performance. Analysts at Morgan Stanley estimate that 10% of its profit come from Chinese students and this could decline if they stop coming to Australia to study. Though, it is worth noting that this hasn’t stopped the broker giving its shares an overweight rating with a $24.00 price target.

Webjet Limited (ASX: WEB)

The Webjet share price wasn’t far behind with a decline of 8.7% last week. This decline appears to have been driven by profit taking after a particularly strong gain in November by the online travel agent. The company’s shares stormed a massive 65% higher during the month thanks to border re-openings and positive COVID-19 vaccine developments.

Pendal Group Ltd (ASX: PDL)

The Pendal share price was a poor performer over the five days and dropped 8.2%. Last week the fund manager held its annual general meeting. Not even some positive commentary from management was enough to keep investors from selling shares. It commented: “As we enter FY21 we do so in a much-improved position despite the global uncertainty. We have seen an improvement in investment performance, and we are investing in areas that will grow our funds under 5 management, with a team that is focused and motivated. Our strategy is clear and we are working hard to make it successful.”

More reading

• Will China’s tariffs cripple the Aussie economy’s 2021 recovery plan?
• ASX 200 drops on Friday
• Why JPM just upgraded the beaten-down Appex (ASX:APX) share price to “buy”
• Brokers name 3 ASX shares to buy right now
• UBS just downgraded these outperforming ASX mining stocks

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 Appen Ltd and Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Webjet 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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Relations between China and Australia have been sinking to new lows. And they show few signs of turning around in the immediate future.

China is Australia’s largest export partner, purchasing 35% of Australia’s exported goods and services.

Enter the tariffs

In what Australia claims is a violation of the World Trade Organisation’s core rules, yet China claims are legitimate tariffs in response to Australian subsidies and dumping of products, China has slapped punitive tariffs on a range of Australian exports, rattling share markets.

To date these include import tariffs on barley, wine, meat, lumber, lobsters and (unofficially) coal. But that list might well grow. Honey producers, cotton and wheat farmers, and pharmaceutical companies are all reportedly in China’s sights.

Should ASX investors be concerned about China’s trade disruptions?

The impact of the tariffs to date has been painful to some specific industries and put the share prices of companies in those sectors under pressure.

The Treasury Wine Estates Ltd (ASX: TWE) share price is an obvious example, down 11% since 25 November.

In November, China revealed it would level tariffs as high as 200% on Aussie wine. Yesterday, the Communist Party upped that with an additional 6.3% “anti-subsidy” tariff.

Now the additional 6.3% won’t have much, if any, impact atop the much bigger existing punitive import duties. In fact, the Treasury Wine share price is up 4.0% in afternoon trading even as the broader S&P/ASX 200 Index (ASX: XJO) is down 0.6%.

However, it does show that China isn’t done with its tariff measures yet.

Which begs the question, just how serious could this get for the wider Australian economy?

According to Shane Oliver, the head of investment strategy & economics and chief economist at AMP Capital, a subsidiary of AMP Ltd (ASX: AMP), it’s unlikely to grow to the point of impacting the majority of Australia’s trade with China.

Speaking at AMP’s webinar on Wednesday, Oliver said:

The exports affected so far amount to $6–7 billion per annum. That’s horrible for those affected, if you’re a wine maker or barley farmer or beef producer… But the overall macro-economic impact is relatively minor. $6 billion is only 0.3% of our economy.

The big impact, Oliver said, would be tariffs on Aussie gas or iron ore. But he believes it’s unlikely China can do that without negatively impacting its own economy. And with iron ore reaching US$156 per tonne earlier today and the price of coking coal in China at 4-year highs, he’s got a good point.

More reading

• ASX 200 drops on Friday
• Why JPM just upgraded the beaten-down Appex (ASX:APX) share price to “buy”
• UBS just downgraded these outperforming ASX mining stocks
• Why the Eagers Automotive (ASX:APE) share price broke its all-time record today
• ASX 200 down 0.3%: CSL sinks, Zip’s Facebook deal, IGO rockets

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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 E&P Financial Group Ltd (ASX: EP1) share price has gained a boost today, after the company received a full takeover offer. A bid to buy out the remaining shares of the embattled financial adviser came from its shareholder, 360 Capital Group Ltd (ASX: TGP).

At the time of writing, the E&P Financial share price is up by 3.13% to 66 cents, while the 360 Capital share price is down 1.04% to 95.5 cents.

What’s the offer

On 27 October, 360 Capital offered E&P 61 cents a share for 80.45% of the shares it doesn’t already own. This was rejected.

360 Capital made a fresh bid today, this time offering E&P’s shareholders 69 cents per share, a 13% increase on its first bid.

The offer has been structured at $0.30 per E&P share, plus 2 36o Capital shares for every 5 E&P shares or part thereof, less any dividends declared or paid after today.

E&P subsequently released an announcement through the ASX late this afternoon, telling its shareholders not to take any action until the board has issued its recommendations.

Why does 360 Capital want to take over E&P

360 Capital already owns 19.55% of E&P’s shares through its private equity subsidiary, 360 Capital ED1 Pty Limited.

In early October, 360 Capital sent a letter to its shareholders explaining why it had acquired 19.55% of E&P, and why it made a conditional offer to acquire the remaining shares.

In that letter, 360 Capital argued that E&P should be privatised. This would provide greater flexibility in managing its capital base, and a faster response to opportunities by removing the complexities associated with public listing. 

In addition, 360 Capital noted that the E&P Financial share price had decreased by 79% since the company’s initial public offer (IPO) in May 2018. It believed a takeover would offer a compelling opportunity for E&P shareholders to realise part of their investment in cash, and also receive 360 Capital shares which would benefit from the potential turnaround of E&P.

About the E&P share price

E&P has been battling the Australian Securities And Investments Commission (ASIC) in court over 126 alleged breaches by company representatives. These relate to 51 instances of advice provided by its advisory business. ASIC said these breaches carried a maximum penalty of $1 million per instance before March 2019, and $10.5 million per instance after that date. The court case is ongoing.

The E&P Financial share price has lost 33% in 2020. The company currently commands a market value of $150 million.

More reading

• 4 small cap ASX dividend shares with large yields
• 360 Capital (ASX:TGP) share price edges higher on earnings forecast

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 Hydrix Ltd (ASX: HYD) share price is trading lower despite a positive update at the company’s annual general meeting (AGM) this afternoon. Shares in the innovative small cap have dropped 3.57% to trade at 27 cents at the time of writing.

What was covered at the AGM?

Hydrix executive chair Gavin Coote told investors how the company’s strong product innovation has lead to an impressive year.

Driving the Hydrix share price was its 16% revenue growth, which was up to $15.7 million. This is turn lead to $1.2 million in operating profit.

Furthermore, the company retained a strong balance sheet with $9.5 million cash on hand.

This growth has seen the Hydrix share price trading 25% higher than at the same time last year, and outperforming the All Ordinaries Index (ASX: XAO) by 24.57%.

What does Hydrix do?

Hydrix is a product innovation company that aims to enhance people’s wellbeing through three growth platforms. These are: 

• Hydrix Services – designs and engineers client products
• Hydrix Ventures – generates equity returns through investing in companies
• And Hydrix Medical – the most notable platform, it aims to bring innovative medical technologies to market. The implantable heart attack warning system is one such example that has largely behind the company’s share price gain this year.

From these platforms, Hydrix boasts more than 200 client programs over its 18 years in existence.

What now for the Hydrix share price?

Also at today’s AGM, Hydrix management outlined some anticipated events in coming months.

These include the submission of its AngelMed battery testing results to the United States Food and Drug Administration (FDA). There is potential for its first ever implants to come in the third quarter of FY21, the company said.

In addition, if the company gains FDA approval for its AngelMed device in quarter four, it would expect significant ramifications for the Hydrix share price.

More reading

• Vulcan (ASX:VUL) share price rises 20% and breaks new record. Here’s why.
• Why ‘ASX dividend king’ Soul Patts (ASX:SOL) is a top income share for 2021
• The Archer (ASX:AXE) share price lifts on partnership deal
• S&P Global set to launch world’s first cryptocurrency index
• Why the MSM (ASX:MSM) share price has gone gangbusters again

Motley Fool contributor Daniel Ewing 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 S&P/ASX 200 Index (ASX: XJO) fell by 0.6% to 6,643 points.

Here are some of the highlights from the ASX today:

CSL Limited (ASX: CSL)

The CSL share price fell more than 3% after the healthcare giant decided to abandon the phase 2 and phase 3 trial of the University of Queensland (UQ) COVID-19 vaccine.

CSL said that the COVID-19 vaccine from UQ elicits a robust response towards the virus and has a strong safety profile. There were no serious adverse events or safety concerns reported in the 216 trial participants.

However, the phase 1 trial data showed the generation of antibodies directed towards the molecular clamp component of the vaccine, which interfere with HIV diagnostic assays (tests). The potential for this cross-reaction had been anticipated before the commencement of the trial. Participants were fully informed prior to their involvement so that this could occur.

Blood samples from study participants were tested after vaccination and it was found that these molecular clamp antibodies did cause a false positive of a range of HIV assays. Follow-up tests confirmed that there is no HIV virus present. CSL stated that there is no possibility the vaccine causes infection.

With advice from experts, CSL and UQ have worked through the implications that this issue presents to rolling out the vaccine into broad populations. It is generally agreed that significant changes would need to be made to well-established HIV testing procedures to accommodate rollout of this vaccine. Therefore, CSL and the Australian Government have agreed that vaccine development will not proceed to phase 2 or phase 3 trials.

Afterpay Ltd (ASX: APT)

The Afterpay share price went up around 5% after investors learned the ASX 200 buy now, pay later (BNPL) business had won over some new retailers in Canada.

According to reporting by media, Afterpay has partnered with fashion and beauty retailers SHEIN, Rains, Triarchy and Clarins.

Melissa Davis, head of North America for Afterpay said: “Afterpay is growing rapidly in Canada, especially among Millennial and Gen Z consumers, because our service helps young shoppers budget their own money and pay over time. In doing so, our retail partners benefit by attracting new, highly engaged young consumers – helping them increase sales, basket sizes and conversion during the most important retail season of the year.”

It was also reported that last month Afterpay launched cross border shopping, providing its Canadian retailers access to its international network of young and engaged shoppers.

Eagers Automotive Ltd (ASX: APE)

ASX 200 car dealership business Eagers announced an update today. It said that for the year ending 31 December 2020, it’s expecting to deliver an underlying operating profit before tax from continuing operations in the range of $195 million to $205 million for 2020, compared to $100.4 million. This guidance reflects the full year of trading for the enlarged company after its merger with Automotive Holdings Group.

The company said that vehicle sales have continued to rebound strongly from the historical lows experienced during April and May 2020. Customer orders have continued on their strong trajectory and supply constraints caused by global manufacturer factory closures during the June quarter have started to ease as shown by the 12% increase in national vehicle deliveries recorded during November by VFACTS.

Management said that the industry’s tight inventory position, along with its cost reduction initiatives that have been implemented, have helped the strong underlying trading performance.

The Eagers share price went up 3%. 

Zip Co Ltd (ASX: ZIP)

BNPL business Zip announced today that it was partnering with Facebook to help small and medium sized Australian businesses to use Zip Business to pay for advertising on the social platform.

Currently in the testing phase, the service will enable small businesses advertising on the platform to reach online shoppers without impacting their cashflow.

The Zip share price finished the day higher by around 2%.

More reading

• Why JPM just upgraded the beaten-down Appex (ASX:APX) share price to “buy”
• Why the Afterpay (ASX:APT) share price is surging higher today
• UBS just downgraded these outperforming ASX mining stocks
• Why CSL, Lovisa, Lynas, & Syrah shares are dropping lower
• Why the Eagers Automotive (ASX:APE) share price broke its all-time record today

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 CSL Ltd. and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T 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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