Alongside sectors that experienced significant earnings tailwinds in 2020, such as technology and healthcare, the automotive sector proved resilient, delivering strong returns.

Here are the ASX shares in the automotive sector that pushed higher in a year impacted by the coronavirus pandemic. 

Eagers Automotive Ltd (ASX: APE) 

The Eagers Automotive share price was a top performing ASX share in 2020, closing 30% higher. 

The company provided the market with an upbeat guidance upgrade, expecting to deliver an underlying operating profit before tax in the range of $195 to $205 million for 2020, compared to $100.4 million for the prior corresponding period.

The guidance reflects the first full year of trading for the enlarged company following its transformative merger with Automotive Holdings Group. 

The update highlights rebounding vehicle sales from the historic lows experienced during April and May 2020. It said that sales have continued in a strong trajectory and supply constraints caused by global manufacturer factory closures during the June quarter have started to ease, demonstrated by the 12% uptick in national vehicle deliveries recorded during November. 

Bapcor Ltd (ASX: BAP) 

Similarly, the Bapcor share price finished the year 20% higher on a similar premise of strong revenue growth. In the company’s trading update for the first quarter of FY21, it indicated that Group revenue was up 27%.

Looking ahead, the company anticipates that it will achieve revenue growth of at least 25% over the pcp in FY20, and net profit after tax will increase at least 50% over the pcp which was $45.6 million. 

Carsales.com Ltd (ASX: CAR) 

The Carsales share price also finished the year 20% higher following strong growth in car ownership demand and traffic to its platform. The company has revealed a number of trends emerging from COVID-19 that support continued earnings growth. 

Firstly, key observations from a recent Carsales survey has seen an increased preference towards online shopping, away from traditional retail. Another recent Carsales survey indicated concerns about taking public transport or using rideshare due to hygiene concerns. 

The company also pointed towards government stimulus initiatives that have driven increased demand for vehicles. This includes instant asset tax write offs for assets up to $150,000, which has stimulated demand for cars in the commercial sector.

Individuals affected by COVID-19 have also been granted early access to two $10,000 parcels of their superannuation in FY20 and FY21. 

Foolish takeaway

The automotive sector has benefited from a number of trends emerging from COVID. With strong forecasted earnings and proven outperformance in 2020, could ASX shares in the automotive sector be poised for more growth in 2021?

More reading

• Here’s how the S&P/ASX All Technology Index fared in 2020
• 3 reliable ASX 200 shares that keep growing
• Here’s what is dragging the Over the Wire (ASX:OTW) share price lower
• 2 ASX shares to buy that are growing rapidly
• The Bapcor (ASX:BAP) share price just got upgraded again

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

The post How ASX shares in the automotive sector outperformed the market in 2020 appeared first on The Motley Fool Australia.

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The Douugh Ltd (ASX: DOU) share price has been suspended for a couple of weeks and investors were finally told why today.

In a separate announcement, Douugh confirmed reports that it has signed an agreement to acquire investing app Goodments for $1.5 million in shares.

What did Douugh announce?

Douugh’s shares have been out of action since 21 December. This was initially due to a trading halt that was requested while it prepared an announcement relating to the Goodments acquisition.

However, on 23 December, an extension was requested while it prepared a response to a query from the ASX. Despite requesting further extensions, no details were provided on what the ASX was querying. Until now.

This afternoon Douugh revealed that the ASX has identified potential ASX Listing Rule 10.11 breaches in its recent placement and in the backdoor listing transaction. Douugh landed on the ASX via a reverse takeover of ZipTel in September.

What is Listing Rule 10.11?

The ASX explained the rule on its website. It is as follows:

“Listing Rule 10.11 effectively requires an entity to obtain the approval of the holders of its ordinary securities before it issues, or agrees to issue, any equity securities to a related or other closely connected party unless the securities are issued under an employee incentive scheme with the approval of holders of ordinary securities under Listing Rule 10.14; or another exception in Listing Rule 10.12 applies.”

The stock exchange operator advised that the rule is in place so that a “related or other closely connected party of an entity is not in a position to influence whether the entity issues, or agrees to issue, equity securities to them, as well as the terms on which the issue or agreement is made. The harm it seeks to protect against is that the related or other closely connected party will exercise that influence to favour themselves at the expense of the entity.”

What now?

Douugh was given until 4pm on 6 January to deliver its response to the ASX but has been granted an extension until 8 January. It explained that this was to allow the company to complete an independent review of the backdoor listing register.

Management advised that its shares will remain suspended pending the outcome of the ASX’s queries.

Goodments acquisition.

Douugh has revealed that it has signed an agreement to acquire investing app Goodments for $1.5 million in shares.

Goodments currently has 12,700 customers and an average of $6,000 per active investor of funds under management.

Completion remains subject to the satisfaction of a number of conditions such as due diligence by both parties and relevant approvals.

More reading

• Douugh (ASX:DOU) to acquire Goodments: report
• What is happening with the Douugh (ASX:DOU) share price?
• These were the best-performing ASX IPOs in 2020
• Here are 6 of the top performing ASX fintech shares of 2020
• Experts pick the best ASX IPO of 2020

Motley Fool contributor James Mickleboro 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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Harvest Technology Group Ltd (ASX: HTG) shares are edging higher today after the company announced an initial agreement to further develop industrial smart safety glasses. During early afternoon trade, the Harvest share price is bucking the downward trend of the wider market to trade 1.6% higher at 31.5 cents.

In comparison, the All Ordinaries Index (ASX: XAO) is down 1% to 6,883 points.

What’s driving the Harvest share price?

The Harvest share price is climbing higher following news of the company’s strategic partnership with Iristick.

Based in Belgium, Iristick is a technology company focused on creating smart safety glasses for frontline and field workers. The wearables include a variety features such as dual cameras, zoom lenses, barcode scanners, voice commands, and more.

These allow a user wearing the smart glasses to receive real-time feedback from a remote expert. Potential applications include for surgeons performing operations on patients, or quality assurance personnel completing remote factory acceptance tests.

Under the agreement, Harvest will integrate its Infinity Nodestream and Wearwolf technology into Iristick’s smart glasses.

Wearwolf is a software application version of the Infinity Nodestream encoding platform designed to run on wearable and smartphone devices. Wearwolf enables live, point-to-point video and communications at ultra-low bandwidths.

Successful prototype testing was conducted last month during which the Wearwolf application was combined with the Iristick software development kit. As a result, the smart glasses have commenced proof of concept trials before their launch some time in early 2021.

A proof-of-concept trial involves carrying out various tests and analyses to determine how a particular idea or concept can be turned into a commercial reality. 

Management commentary

Harvest managing director Mr Paul Guilfoyle commented on the strategic partnership, saying:

We are very excited to be involved in a relationship with Iristick and look forward to our joint opportunities in the future. The synergies between our two companies are synonymous with a motivation to deliver high-quality remote communications and assistance from anywhere in the world.

We have successfully proven our Wearwolf application on multiple wearable platforms and we are confident it can be quickly adapted for use across other wearable devices. Given the expected growth in the wearables market, we are forecasting more than a 1000 new Wearwolf licenses in 2021.

Addressable market opportunity

As the world’s use of technology continues to evolve, the uptake of wearable devices is growing at a rapid pace.

According to a ‘Global Smart Augmented Reality Glasses Industry’ study in July last year, sales of wearables are projected to reach around 31.1 million units by 2027. This represents a compound annual growth rate (CAGR) of 104.6%.

More specifically, the uptake of simple assisted reality glasses are forecast to reach 12.3 million units in the same timeframe, signifying a 101.9% CAGR.

About the Harvest share price

The Harvest share price has been on a strong run over the past 12 months, rewarding shareholders with gains of over 420%.

The company’s shares hit a 52-week low of 4.7 cents in January last year, before roaring to an all-time high of 40.5 cents in August.

At the current Harvest share price, the company has a market capitalisation of $152 million.

More reading

• How ASX shares in the automotive sector outperformed the market in 2020
• Here’s why the Douugh (ASX:DOU) share price remains suspended
• Why the Noxopharm (ASX:NOX) share price is jumping 14% higher today
• Goldman points to commodities super-cycle so which ASX mining shares will benefit?
• Can the InvoCare (ASX:IVC) share price reclaim its 52-week high in 2021?

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

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While the S&P/ASX 200 Index (ASX: XJO) is slipping today, the Australian clinical-stage drug developer Noxopharm Ltd (ASX: NOX) is bucking the trend with its shares rising.

At the time of writing, the Noxopharm share price is up 14.13% to 52 cents.

Why is the Noxopharm share price increasing?

Cancer drug update

Noxopharm released a shareholder update to the market this morning pertaining to its drugs in development.

In the update, Noxopharm states that its immunotherapy drug, Veyonda, is emerging as a major new treatment. The company goes on to describe the potential value as ‘multi-billion dollar’, based on its ability to boost the effectiveness of all 3 current methods of cancer treatment: immune-oncology therapy, radiotherapy, and chemotherapy.

The immunotherapy drug is currently undergoing various testing by IONIC, LuPIN, and DARRT-2 to assess its ability in different applications.

Noxopharm has also advised that its NOXCOVID trial is progressing as planned. The aim of this drug is to block the cytokine release syndrome in COVID-19 patients, preventing deaths and long-term disability. The company foresees the trial to likely expand as COVID-related deaths rise across Europe.

Positioning for commercial transactions

Noxopharm later mentioned that it believes its leading position in restoring immune function to tumours will translate shortly into commercial discussions. Due to this, the company is building an in-house business development capability to meet this opportunity.

Future plans

Noxopharm detailed 2 programs it is focusing on for its drug pipeline for 2021. The first being treatments for pancreatic carcinoma and cholangiocarcinoma. The second being treatments for brain cancers, based on the inhibition of metabotropic glutamate receptor activity.

The company is expected to have identified lead drug candidates and be underway with standard pre-clinical testing programs by mid-2021.  

Lastly, Noxopharm has elaborated on the new subsidiary, Pharmorage Pty Ltd. The purpose of the new entity is to build upon an existing drug that was found to be potentially useful in treating cytokine release syndrome and septic shock. Pharmorage has reportedly initiated a number of drug discovery programs which will be reported on progressively throughout the year.

The Noxopharm share price has gained 102% over the last 12 months.

More reading

• Goldman points to commodities super-cycle so which ASX mining shares will benefit?
• Can the InvoCare (ASX:IVC) share price reclaim its 52-week high in 2021?
• Amazon expands its air delivery fleet after buying 11 new planes
• The Pushpay (ASX:PPH) share price jumped 80% in 2020: Can it go higher?
• How the Telix (ASX:TLX) share price roared over 150% in a year

Motley Fool contributor Mitchell Lawler 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 long-suffering commodity markets may have turned a corner after a China-fuelled commodity boom. The gains come amid calls by Goldman Sachs of a new long-term bull market propped by ultra low interest rates, supply constraints and a weak US dollar. 

Here are the ASX mining shares that are set to benefit from higher commodity prices. 

A wild year it was for commodities 

2020 was a wild year for commodities, as it was for other assets in a world ravaged by COVID-19. In an event like no other, oil prices crashed in April, falling into negative territory for the first time ever. 

But it wasn’t just oil, the Bloomberg Commodity Index, which tracks 23 commodity futures markets hit an all-time low in April 2020 based on data that goes back to 1991.

The index has since bounced more than 30% from its lows but is still in multi-year low territory.

Which ASX mining shares will benefit?

Iron ore 

Iron ore has extended its gains to a 7-year high of US$166 per tonne. The Australian government sees iron ore prices to remain strong, above US$100 per tonne until mid-2021, before easing gradually to around US$75 by the end of 2020 as Brazilian supply recovers and Chinese stimulus eases back. 

Higher iron ore prices will support the BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) share prices which are all sitting in record territory. 

Copper 

Last month, copper topped $8,000 a tonne for the first time in more than 7 years. This has seen the OZ Minerals Limited (ASX: OZL) share price almost double in 2020 and the depressed Sandfire Resources Ltd (ASX: SFR) share price up 25% in the last two months. 

Crude oil

Crude oil made a significant recovery before the end of the year, rallying from the US$40 level in November to US$50 by December. Following the bullish price action, the S&P/ASX 200 Energy (ASX: XEJ) index rallied 30% during the same time period. 

Aluminium 

Aluminium prices have moved up to a 2-year high thanks to improved demand from China and the United States. This has helped the South32 Ltd (ASX: S32) and Alumina Limited (ASX: AWC) share prices push higher throughout November and December. 

More reading

• Why Fortescue, Nick Scali, Santos, & Zip shares are charging higher
• Leading brokers name 3 ASX shares to sell today
• ASX 200 down 0.3%: BHP & Rio Tinto rise, big four banks drop, Zip sinks
• Why BHP, Cann, Nick Scali, & Ramelius shares are pushing higher
• ASX mining shares that delivered the best returns in 2020

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.

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Funeral homes and cemeteries operator InvoCare Limited (ASX: IVC) had a rollercoaster year in 2020. The InvoCare share price fell as low as $9.07 in March 2020, after climbing to its 52-week high of $15.79 only a month earlier.

The share price is currently trading 1.3% lower for the day so far at $11.44 – which is still almost 30% off its highs of last year.

Can the InvoCare share price regain its former glory in 2021?

How did InvoCare do in 2020?

For its half year ending 30 June 2020, InvoCare produced revenue of $226 million which represented a 6.2% decline over the prior corresponding period. That resulted in a bottom line net loss of $18 million, compared to a $41 million profit in the same FY19 period.

The key driver in declining revenue was primarily COVID-19 restrictions on the number of attendees at funerals.

The company also said that, ironically, social distancing and increased focus on hygiene in the wake of the pandemic led to a virtually non-existent flu season and significantly lower mortality rates in calendar 2020. This further drove down the company’s revenue.

To keep the business steady in the first half of 2020, InvoCare completed a $274 million equity raising to reduce net debt and increase its liquidity.

Things were starting to look up in the second half however, with the company announcing the acquisition of two pet cremation and after life care businesses worth around $50 million.

Tailwinds for the InvoCare share price in 2021

Death is one of the few certainties in life, and InvoCare dominates the Australian funeral and death care industry.

As the largest provider of funeral, cemetery, and crematorium services, the company has taken a revenue market share of around 36% in Australia and 18% in New Zealand.

While death rates fluctuate from year to year, they tend to converge to a stable average over the long run. This is because mortality rates are a simple function of the population size, average age, and life expectancy of a country.

Given Australia’s ageing population, it is expected that the mortality rate in Australia will be around 2% per year over the next decade. This is expected to accelerate beyond 2030, providing InvoCare with a steady stream of future revenue.

InvoCare believes that conditions in 2020 represent a blip, and that death rates and revenues will return to normal over the near term.

Also underpinning InvoCare’s prospects is the belief that its customers, typically the family of the deceased, are relatively price-insensitive given the highly emotional context surrounding the death of a loved one. This means people are less likely to shop around and compare prices for funeral services than they would be for other services.

How competition might affect InvoCare

As the biggest operator in the industry, InvoCare enjoys considerable bargaining power when it comes to sourcing coffins, cars, flowers, and the other components that typically make up funeral services.

This has allowed the company to operate at a higher profit margin than its next biggest competitor, Propel Funeral Partners Ltd (ASX: PFP).

Propel is aiming to increase its market share through acquisitions, thus potentially presenting InvoCare with increased competition.

In November, Propel announced it had completed the acquisition of The Dills Group and MidWest Funerals, which will add around 800 funerals a year to its revenue stream.

More reading

• Here’s why the InvoCare (ASX:IVC) share price is on the rise today
• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• 3 little-known ASX dividend shares offering big income

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has recommended InvoCare Limited and Propel Funeral Partners 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 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.

Amazon.com Inc (NASDAQ: AMZN) air cargo ambitions are taking a new flight path after the e-commerce giant announced it was buying, not leasing, 11 used Boeing aircraft from Delta Air Lines and WestJet Airlines.

The purchase marks the first time Amazon has not leased any airplanes for its Prime fleet. It expects to have 85 planes in service by the end of next year.

On a wing and a prayer

Amazon leases most of its cargo aircraft through Air Transport Services Group, which provides the fleet with 767s, and Atlas Air Worldwide Holdings, which supplies 737s and 767s. Amazon has taken an ownership stake in both companies.

It also leased 15 737s through General Electric‘s GE Capital Aviation Services, but in September went off in another new direction that hinted at the purchases to come when it directly registered one of its aircraft under its own name. That plane was also from WestJet.

Under the new acquisition, Amazon will be getting Boeing 767-300 aircraft. Sarah Rhoads, vice president of Amazon Global Air said in a statement:

Our goal is to continue delivering for customers across the U.S. in the way that they expect from Amazon, and purchasing our own aircraft is a natural next step toward that goal. Having a mix of both leased and owned aircraft in our growing fleet allows us to better manage our operations, which in turn helps us to keep pace in meeting our customer promises.

Amazon has emerged as a major threat to FedEx and UPS. A recent study suggested the e-commerce leader could grow into a major aircraft carrier with as many as 200 planes in the next seven or eight years, at which time it would be close in size to UPS.

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

More reading

• 3 mammoth IPOs of 2020
• If you thought 2020’s tech share rally was impressive, hold on for 2021!
• Amazon makes bank from marketplace seller ads
• FAANG stocks make their case to lead the Nasdaq in 2021
• Why Amazon’s stock is so expensive

Rich Duprey has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and FedEx. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Delta Air Lines and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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 Pushpay Holdings Ltd (ASX: PPH) share price was on form again in 2020 and surged notably higher.

Over the 12 months, the donor management and community engagement platform provider’s shares were up a sizeable 81%.

Why did the Pushpay share price jump 80% higher in 2020?

Investors were buying Pushpay’s shares in 2020 after it delivered exceptionally strong revenue and earnings growth despite the pandemic.

In FY 2020, the company reported a 33% increase in operating revenue to US$127.5 million. This was driven by a 39% increase in total processing volume to US$5 billion, a 42% lift in customer numbers to 10,896, and flat average revenue per user of US$1,317 per month.

While this growth was clearly very strong, it was nothing compared to its earnings growth thanks to the achievement of further operating leverage.

During the 12 months, Pushpay’s operating expenses only grew 5%. As a result, as a percentage of revenue, its operating expenses reduced from 65% to 52%.

This led a massive 1,506% increase in earnings before interest, tax, depreciation, amortisation and foreign currency gains/losses (EBITDAF) to US$25.1 million.

Pushpay’s strong form continues.

Also giving its shares a boost was the company’s half year results and guidance for FY 2021.

For the six months ended 30 September, Pushpay delivered a 48% increase in total processing volume to US$3.2 billion and a 53% increase in operating revenue to US$85.6 million.

Once again, the company delivered further operating leverage, reducing its operating expenses as a percentage of revenue to 38%.

This underpinned a 177% increase in half year EBITDAF to US$26.7 million. This was more than the entire EBITDAF it achieved in FY 2020.

Looking ahead, more of the same is expected in the second half. Management has provided fully year FY 2021 EBITDAF guidance of between US$54 million and US$58 million. This will be up 115% to 131% year on year.

Can the Pushpay share price go higher?

Analysts at Goldman Sachs believe the Pushpay share price can continue its ascent in 2021.

It currently has a conviction buy rating and ~$2.59 price target on its shares. This compares to the current Pushpay share price of $1.71.

More reading

• 3 great ASX tech shares to buy
• 2 outstanding ASX shares to buy and hold
• 3 exciting ASX payment shares to buy in January
• Got money to invest? Here are 3 ASX shares to buy
• Top ASX shares to buy in January 2021

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 PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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Over the past 12 months, the Telix Pharmaceuticals Ltd (ASX: TLX) share price has posted massive gains exceeding 150%. The Telix share price kicked off 2020 at $1.53, closed the year at $3.78 and is currently sitting at $3.86 per share.

So what has Telix done to achieve this remarkable pump for its share price?

Significant US Food and Drug Administration (FDA) wins

In January 2020, Telix announced that the US Food and Drug Administration (FDA) approved the recruitment of American participants in the company’s Zirconium Imaging in Renal Cancer Oncology (ZIRCON) study. This was an important milestone because it extended the Phase III study into new territory beyond Australia and Europe.

The purpose of the international study is to evaluate Telix’s kidney cancer imaging agent (TLX250-CDx), which aims to detect the most common form of kidney cancer, clear cell renal cell carcinoma. The FDA followed this approval up by designating TLX250-CDx as a ‘Breakthrough Therapy’.

In February 2020, Telix announced that the FDA had also offered positive feedback regarding the company’s submission of a New Drug Application (NDA) for its product TLX591-CDx. TLX591-CDX is an imaging radiopharmaceutical to support people suffering from prostate cancer. 

When Telix announced that the company had formally submitted the NDA in July 2020, the Telix share price jumped 16%. In the company’s August 2020 half-year shareholder report, it was noted that sales of the TLX591-CDx kit were up 28% compared to the previous corresponding period (PCP). This resulted in a $2.1 million bump in cash receipts. 

Telix continued marching forward with yet another FDA approval last October regarding its 18F-FET product, which supports the imaging of glioma, a type of brain tumour.

The strategic acquisition of TheraPharm 

As 2020 carried on, Telix diligently expanded its market reach. In November 2020, they announced that the company had entered an agreement with Scintec Diagnostics to acquire TheraPharm. TheraPharm is a Swiss-German biotechnology company developing diagnostic and therapeutic solutions in the field of haematology — specifically, blood cancers.

The acquisition was finalised in December 2020. 

What’s on the horizon for the Telix share price?

Telix continues to aggressively pursue opportunities for the company’s suite of pharmaceutical products. On 16 December 2020, Telix filed a New Drug Submission (NDS) with Health Canada pertaining to TLX591-CDX product approval. 

Later that month, Telix provided a clinical update regarding research connected to its TLX101 product in Australia and Europe. TLX101 endeavours to treat recurrent glioblastoma multiforme, a cancerous brain tumour.

A 12-month share price hike of 150% won’t be an easy achievement to top. As we enter 2021, investors will no doubt be keeping an eye on Telix’s pipeline to see if the company can keep up with last year’s powerhouse performance.

More reading

• Telix (ASX:TLX) share price down 4% despite new deal
• The Telix (ASX:TLX) share price is on the move today. Here’s why.
• Telix (ASX:TLX) share price slips despite priority review status

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.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a very disappointing decline. At the time of writing, the benchmark index is down 1.2% to 6,603.4 points.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price is down 3% to $11.09. This infant formula and fresh milk company’s shares have come under pressure in recent months due to weakness in the daigou channel. Judging by its increasing short interest, it appears as though some in the market are not convinced the worst is over for the company just yet.

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price has dropped 3% to 16.5 cents. The lithium-focused mineral exploration company’s shares may have come under pressure from profit taking after some stellar gains recently. Prior to today, the AVZ Minerals share price had almost doubled in the space of just one month. This was driven by optimism over lithium prices and the announcement of an offtake agreement.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down over 7% to $7.46 despite there being no news out of the infection prevention company. Once again, this appears to have been driven by profit taking. The Nanosonics share price hit a record high of $8.25 on Monday. Investors have been buying its shares on the belief that COVID-19 will be a tailwind for infection prevention solutions.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is down 4% to $22.71. This may be due to concerns over the impact that the UK lockdown will have on its sales in the country. Premier Investments has 131 Smiggle stores in the UK, though is planning to close up to 55 of these during FY 2021.

More reading

• Are heads in the clouds with these sky high P/E ratios?
• ASX 200 down 0.5%: Energy shares jump, big four banks fall, Zip climbs higher
• Here’s why the A2 Milk (ASX:A2M) share price was hammered in 2020
• Investors caught in crossfire as ASX retailers battle ASX property stocks in 2021
• These are the 10 most shorted shares on the ASX

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 Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended A2 Milk and Premier Investments Limited. The Motley Fool Australia has recommended Nanosonics 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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