Some investors may not have heard of ASX small cap shares Eureka Group Holdings Ltd (ASX: EGH) or Healthia Ltd (ASX: HLA), but both companies’ share prices are currently trading at or near their 52-week highs.

The Eureka share price is currently trading higher by 3% to at 48 cents — its 52-week high.

The Healthia share price, meanwhile, touched its all-time high of $1.64 earlier today. It has since retreated to the current price of $1.55, up by 1.3%.

Let’s take a quick look at what’s been driving the share prices.

Eureka Group

Eureka Group is a provider of quality and affordable rental accommodation for independent seniors within a community environment. It owns 30 villages and manages a further nine villages with a total of more than 2,000 residences across Queensland, Tasmania, South Australia, Victoria, and New South Wales.

In FY20, Eureka delivered across all key financial metrics over the previous year.

Healthia is a small cap ASX share that is an integrated group of health businesses which includes My FootDr (a podiatry business), Allsports Physiotherapy, Extend Rehabilitation, iOrthotics (a 3D printing orthotic devices business), and DBS Medical Supplies (a podiatry equipment business).

In its full FY20 results, the company reported a 40% increase in underlying revenue, while its underlying EBITDA grew 47.6%.The company also reported a 22% bottom line increase in underlying net profit.

Healthia has identified acquisitions to be the main focus for its growth, given the fragmented market in the health industry. In its most recent round of acquisitions, Healthia purchased The Optical Company for $43 million, and the North Queensland Physiotherapy Centre for $1.34 million.

It commands a market cap of $135 million.

More reading

• 3 ASX shares rated as buys by fundie

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has recommended HEALTHIA 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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After ringing in the new year, many ASX investors are looking to add new shares to their portfolios. And perhaps sell some they believe will underperform in 2021.

We’ll let the potential underperformers rest for today. Instead we turn to a share that Centennial Asset Management’s Matthew Kidman believes could lead the ASX charge higher in the year ahead.

Namely, Downer EDI Limited (ASX: DOW).

Why Downer is tipped to outperform in 2021

If you’re unfamiliar with Downer EDI, the company designs, builds and sustains assets, infrastructure and facilities in Australia and New Zealand. It operates across a range of industries including transport, utilities, mining, engineering and construction. Downer is part of the S&P/ASX 200 Index (ASX: XJO).

In an interview with Livewire Markets last week, Matthew Kidman explained why he likes the outlook for Downer shares in 2021. Kidman said that Downer was in the middle of restructuring its business:

It’s selling its lumpy, heavy capital intensive components, and going into a much more capital-light service-based business with a lot of long-term government contracts.

It’s really unloved by the market and it’s trying to fix itself up. It’s fixed its balance sheet, it’s fixing its business mix up. I think it sits alone as a service-based business for that mid to large-cap market.

As they see it unwind some of these businesses and focusing on the better-returning businesses, it will get a re-rate. So today, around $5.30, I think it can trade on a slightly higher multiple. With that multiple expansion, the earnings will go up. I think over the course of the next few months they may be able to get around $7 out of it, as long as the story unfolds the way we think it will.

Downer share price snapshot

Downer shareholders were absolutely hammered during the wider COVID-19 market selloff last year. From 21 February through to 24 March, the Downer share price crashed 69%.

Since that low, shares have rebounded an impressive 103%. But that still leaves the share price down 37% since 21 January last year.

Downer trades at a trailing price to earnings (P/E) ratio of 12.4 times. The company pays a dividend yield of 2.4%, unfranked.

The Downer share price gained 0.9% today, closing at $5.53 per share.

More reading

• 7 ASX shares to buy for 2021
• Can the ugliest ASX 200 dogs of 2020 turnaround in the New Year?
• Downer (ASX:DOW) share price edges higher on divestment news

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

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Australian retail turnover rose 7.1% in November 2020, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures.   

The rise was led by Victoria, which saw its retail sales surge by 22.4% as Melbourne retail stores were able to trade for a full month in November. Excluding Victoria, turnover increased 2.6%. 

ASX retail shares have largely reported upbeat earnings, especially in the months of November and December. Here are the industries and ASX retail shares that have benefitted from improved retail conditions. 

Industry level breakdown 

At the industry level, clothing, footwear and personal accessory retailing jumped by 26.7%. 

Coinciding with the strong performance for this segment, Accent Group (ASX: AX1) released a trading update on 7 January 2021 citing stronger than expected sales in November and December. The company is now expecting group earnings before interest, tax, depreciation and amortisation (EBITDA) for the half year ended 27 December 2020 to be in the range of $95 million to $98 million, which represents a growth of between 40–45% on the prior corresponding period. 

Department stores also experienced a significant uplift in turnover with a 21.1% increase. This has helped the likes of Kmart and Target owner Wesfarmers Ltd (ASX: WES) hit all-time record highs on the back of strong earnings across the group’s retail businesses.

Household goods retailing also improved 12.7%. Nick Scali Limited (ASX: NCK) recently updated its profit guidance following better than anticipated container availability during the months of November and December, which lead to increased delivery volumes. The company now expects unaudited net profit after tax for the six months to 31 December 2020 to be $40.5 million, up approximately 100% on the prior corresponding period.

Other household retailers such as Temple & Webster Group Ltd (ASX: TPW) and Adairs Ltd (ASX: ADH) have also experienced a recent resurgence in share price.

Elsewhere, cafes, restaurants and takeaway food services increased 6.7% while food retailing fell 0.3%. Total retail turnover rose 13.3% when compared to November 2019. 

E-commerce trend continues 

The growing dominance of e-commerce is also clear in these latest numbers. Online sales made up 11% of total retail turnover in November 2020, compared to 10.4% in October 2020, while in November 2019, online retail contributed 7.2% to total retail turnover. 

More reading

• 2 star ASX shares to buy for a retirement portfolio
• Capital returns galore from cashed-up ASX retail stocks
• The biggest ASX bulls are about to get their faith tested
• Got money to invest? Here are 3 ASX shares to buy
• 3 ASX dividend shares with yields above 4%

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Accent Group, ADAIRS FPO, and Temple & Webster Group 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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If you’re in the process of building a retirement portfolio, then you might want to take a look at the ASX shares named below.

They could be great options for investors looking for a combination of growth and income over the next decade. Here’s what you need to know:

Collins Foods Ltd (ASX: CKF)

The first share to look at is Collins Foods. It is a growing quick service restaurant operator with a massive 244 KFC stores in Australia and 41 KFC stores in Europe. Collins Foods also operates 13 Taco Bells across Queensland and Victoria.

Its defensive qualities were on display for all to see in 2020 when Collins Foods delivered strong sales, profit, and dividend growth despite the pandemic. During the first half of FY 2021, the company reported an 11.3% increase in revenue and a 15.1% lift in underlying net profit after tax.

The good news is that management still sees plenty of room for growth for its KFC network in Australia and particularly in the underpenetrated Europe market. This should be supported by the further rollout of Taco Bell stores.

One broker that is positive on Collins Foods is Morgans. It has an add rating and $11.39 price target on its shares. The broker is forecasting a fully franked dividend of 23 cents per share. This represents an attractive 2.5% dividend yield.

Wesfarmers Ltd (ASX: WES)

Another ASX share that could be a good option for a retirement portfolio is Wesfarmers. This conglomerate is arguably one of the highest quality companies on the Australian share market and has been tipped to deliver solid earnings and dividend growth over the next decade.

This is thanks largely to its portfolio of leading retail brands such as Bunnings, Catch, and Kmart. In addition, the company has a number of industrial businesses with decent outlooks and exposure to the lithium boom through its Kidman Resources business.

Another positive is that the company has a very strong balance sheet and plenty of firepower to make earnings accretive acquisitions in the future.

Analysts at Credit Suisse are positive on the company and have an outperform rating and $55.83 price target on its shares. They are also forecasting a $1.90 per share fully franked dividend in FY 2021. This equates to a 3.7% dividend yield.

More reading

• Capital returns galore from cashed-up ASX retail stocks
• 3 ASX dividend shares with yields above 4%
• 2 blue chip ASX dividend shares to buy
• ASX 200 drops 1.1%
• 2 fantastic ASX mid cap shares to buy

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Collins Foods 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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Due to a number of favourable tailwinds such as ageing populations, better technologies and treatments, and increasing chronic disease burden, demand for healthcare services is expected to increase strongly over the next few decades.

In light of this, the healthcare sector has been tipped as an area of the market to consider long term investments. But which shares should you buy? Two healthcare shares that are highly rated are listed below:

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a medical imaging data management solutions provider which uses software to create a clear and complete view of the patient.

Its software helps inform diagnosis, reduce care delivery delays and costs, and ultimately improves patient outcomes. The company has also expanded its offering this year with the acquisition of leading provider of an enterprise image viewing technology, Client Outlook. This acquisition increases Mach7’s total addressable market from US$0.75 billion to US$2.75 billion.

Analysts at Morgans are bullish on the company and have an add rating and $1.49 price target on the company’s shares. They have been pleased with the acquisition and integration of Client Outlook and believe the company’s solutions are well-placed in the current environment where demand for telehealth is growing fast.

Pro Medicus Limited (ASX: PME)

Pro Medicus is healthcare technology company that provides radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions to healthcare organisations across the globe.

It has been growing at a consistently strong rate over the last few years thanks to the quality of its software, its sizeable market opportunity, and the shift away from legacy systems.

Pleasingly, Pro Medicus has been tipped to continue this positive form over the coming years by analysts at Morgans. The broker currently has an add rating and $35.02 price target on the company’s shares. It was pleased with the recent signing of a five-year contract with MedStar Health worth a total of A$18 million. Morgans notes that this completely cloud-based contract showcases the flexibility of its technology.

More reading

• Top brokers name 3 ASX shares to buy today
• Are heads in the clouds with these sky high P/E ratios?
• Which ASX 200 healthcare shares delivered the top returns in 2020?
• ASX 200 up 0.8%: CBA storms higher, Link sinks, tech shares rise
• Sonic Healthcare (ASX:SHL) share price gets fresh COVID boost

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO and Pro Medicus Ltd. The Motley Fool Australia has recommended MACH7 FPO and Pro Medicus 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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Most weeks, the Commonwealth Bank of Australia (ASX: CBA) CommSec brokering platform tells us the international shares (which are almost always American shares) that are the most popular with its customers. We’ve already looked at the most popular ASX shares today.

CommSec is one of the largest online brokers in the country. As such, this data can be a useful ‘finger on the pulse’ of general investing trends in the Aussie market. This week’s data covers 4-8 January.

So here are the top 10 United States shares CommSec customers were buying last week:

Most traded US shares on the ASX

1. Tesla Inc (NASDAQ: TSLA) – representing 7.1% of total trades with a 78%/22% buy-to-sell ratio.
2. Nio Inc (NYSE: NIO) – representing 3.7% of total trades with an 80%/20% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.3% of total trades with a 78%/22% buy-to-sell ratio.
4. BioNano Genomics Inc (NASDAQ: BNGO) – representing 2.3% of total trades with a 71%/29% buy-to-sell ratio.
5. Alibaba Group Holding Ltd (NYSE: BABA) – representing 2.4% of total trades with a 50%/50% buy-to-sell ratio.
6. ARK Genomic Revolution ETF (BATS: ARKG)
7. ARK Innovation ETF (NYSE: ARKK)
8. Microsoft Corporation (NASDAQ: MSFT)
9. Quantumscape Corp (NYSE: QS)
10. Amazon.com Inc (NASDAQ: AMZN)

What can we learn from these trades?

We have some interesting developments in this data. But first, it’s interesting to note that electric car/battery makers Tesla and Nio retain their long-held positions at the top of this list that they dominated across most of 2020.

Excitement over Tesla and Nio is reaching fever pitch. Tesla alone is up 673% over the past 12 months, including almost 100% since 16 November. It has, just in the past week, printed a new all-time high of US$884.49 a share. As a result, Tesla CEO Elon Musk has also recently become the world’s richest person, surpassing Amazon’s Jeff Bezos.

The China-based Nio is fairing even better. Its shares are up more than 20% over the past 5 days, and up an extraordinary 1,600% over the past 12 months. No wonder ASX investors can’t leave these companies alone. However, it is worth noting that roughly 1-in-5 investors are on the selling side of these trades too.

Apple remains ever-popular, but interesting inclusions this week are the biopharma company BioNano, and the Chinese e-commerce giant Alibaba.

BioNano shares caught investors’ eye when it spiked more than 1,200% between 22 December and 4 January.

Alibaba has been in the news recently as the US government contemplates a forced-delisting of certain Chinese companies from US stock exchanges. Interest has also recently been growing over the whereabouts of Alibaba’s founder Jack Ma, who hasn’t been seen in public since October last year, despite being China’s second-richest person. These narratives are possibly what is behind the 50/50 split between buyers and sellers.

We also have a rare appearance of a couple of exchange-traded funds (ETFs) as well. ARKK and ARKG are both run by the popular ARK Invest firm, which is headed by Cathie Wood. Ms Wood has made a name for herself and ARK with an ultra-bullish, tech-driven, growth investing style in recent years, which included some well-timed entries into Tesla stock, incidentally.

Overall, we see a lot of interest in companies that might be described as ‘speculative’. It will be interesting to note how long this trend will carry into 2021.

More reading

• Angry Tyro (ASX:TYR) customers jump ship
• 3 top ASX share picks for 2021
• 4 reasons why the CBA (ASX:CBA) share price could be a buy
• Elon Musk is now world’s wealthiest person
• Better buy: Amazon vs Costco

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Amazon, Apple, Microsoft, and Tesla 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 and Apple. 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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It was an unimpressive day for the ASX today with the All Ordinaries Index (ASX: XAO) sagging 0.2% at the market’s close. 

Regardless of this lacklustre result, these three ASX shares each had a ripper session, with their share prices all vaulting higher than 9%.

Australian Strategic Materials (ASX: ASM)

Australian Strategic Materials finished the day a massive 15.6% higher to close at $5.47.

The company’s cornerstone Dubbo Project is a long-term, sustainable and secure source of rare earths, zirconium, niobium and hafnium. Products requiring these materials include electric vehicles, medical imaging technology, along with wind turbines and control systems for solar panel arrays and robotics. Subject to financing, the Dubbo Project is ready for construction. 

According to the company’s latest presentation, Australia Strategic Materials is currently focussing on objectives that include complete optimisation and financing progression for the Dubbo Project.  

Avita Medical Inc. (ASX: AVH)

The Avita Medical share price closed 15.3% higher at $5.59. The company’s share price first started climbing today after it reported a 57% increase in revenue via its preliminary fiscal second-quarter results.  

The Avita RECELL technology that’s presently in development will be used to treat acute thermal burn wounds. The company recently enrolled nine additional patients in an important study that’s further assessing the use of the RECELL system to treat stable vitiligo. Furthermore, Avita added seven new accounts in the second quarter of 2021 bringing its current accounts total to 93.

Novonix Ltd (ASX: NVX)

The Novonix share price powered up 9.4% today to finish off at $1.68. Novonix is a Brisbane-based company with its sights set on improving batteries for electric vehicles, phones, laptops, cordless equipment and renewable energy storage. 

In its latest corporate update, Novonix provided details associated with the company’s planned delivery schedule for the contract to supply Samsung SDI with 500 tons of PUREgraphite synthetic anode material for use in lithium-ion batteries. 

Novonix is an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry with operations in the USA and Canada and sales in more than 14 countries. 

More reading

• Why the Avita Medical (ASX:AVH) share price is rising this morning
• 2 small cap ASX shares growing at a rapid rate
• Leading broker names the ASX healthcare shares to buy in 2021
• Why did the Avita (ASX:AVH) share price dive 60% in 2020?
• Why AVITA, IDP Education, Over the Wire, & Viva Energy shares are dropping lower

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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 the direction of oil and gas prices is anything to go by, you may want to top off your vehicles this week. And perhaps revisit some of the leading ASX energy shares.

Oil and gas (LNG) prices both fell off a cliff in 2020. That came as domestic and international travel ground to a halt amid global lockdowns aimed at stemming the spread of COVID-19.

On 3 January last year, Brent crude oil was trading for US$68.60 per barrel. By 21 April the price had cratered to US$19.33. Though the price falls were not quite as dramatic, LNG prices sank as well.

By the end of April energy prices began to battle back. Slowly. As recently as 30 October, Brent was still selling for US$37.36 per barrel.

Then came the announcements of multiple effective coronavirus vaccines. While these are still in the early stages of rollout – Australia won’t begin mass vaccinations until March – energy demand is picking up as the world emerges from its self-imposed cocoon.

Together with lower supplies, thanks in large part to unilateral cuts from OPEC powerhouse Saudi Arabia, Brent crude is trading at US$55.63 (AU$72.25) today. That’s up 49% just since the end of October.

And spot prices for LNG in Asia are at record highs, currently over US$20 per million British thermal units (MBTU).

Leading ASX energy shares rocketing higher

With the price of the commodities they pump from the earth soaring, leading ASX energy companies have seen their share prices rocketing higher. Not that they’ve recovered their pre-pandemic levels yet, mind you.

But since 1 November the Oil Search Ltd (ASX: OSH) share price is up 65%.

The Beach Energy Ltd (ASX: BPT) share price is also up 65%.

As for the Santos Ltd (ASX: STO) share price? It’s up 54% since the first trading day of November.

Woodside Petroleum Limited (ASX: WPL) trails this pack with a share price gain since 1 November of ‘only’ 45%.

What’s next for global energy markets?

That’s a peek in the rearview mirror. The pressing question for investors now is what to expect from energy prices, and ASX energy shares, in 2021.

As reported by the Australian Financial Review, Wall Street research firm Bernstein “expects a significant recovery in oil demand in the second half this year”.

That forecast is based on the virus being reined in and unleashing pent-up demand for travel. And Bernstein doesn’t believe the push towards green energy negates this bullish view.

According to Bernstein’s chief oil and gas analyst in Asia, Neil Beveridge:

We still expect another cycle in oil given the under-investment in the industry and demand recovery. You can believe in net zero and still be bullish on oil stocks and oil price in our view.

Eric Streitberg, executive chairman of Buru Energy Limited (ASX: BRU), agrees that the shift to renewable energy sources won’t negate the strong demand for oil and gas anytime soon:

Although there is an inexorable and necessary shift to renewables, the world still needs oil and gas in large quantities and will do so for decades to come. On the supply side, investment in the industry has collapsed and this can only mean production is unlikely to keep up with demand, which will inevitably lead to higher prices.

Buru’s share price, by the way, has also rocketed alongside the soaring energy prices, with Buru shares up 45% since 1 November.

Then there’s Carlos Slim, the world’s 21st-richest person.

According to Bloomberg, Slim and his family business own shares worth US$230 million in oil refiner PBF Energy Inc (NYSE: PBF) and pipeline operator PBF Logistics LP (NYSE: PBFX). And they’ve kept adding to their holdings when share prices were tumbling.

Arturo Elias, Slim’s spokesman, said:

The world still needs refining for planes, ships, cars and these companies were punished because consumption fell due to the pandemic.

ASX oil and gas company CEOs cautiously optimistic

Making hay while the sun shines is good policy if, well, you’re making hay. But the CEOs of some of Australia’s top energy shares prefer to err on the conservative side (quoted by the AFR).

Oil Search CEO Keiran Wulff says:

LNG and oil prices have had a strong start to the year and there is cautious optimism pricing will continue to be supported through the year… Regardless of the improved pricing outlook, Oil Search will continue to run the business conservatively as we focus on costs, production and break-even to enhance resilience and position the company for greater upside in the event of longer-term stronger pricing than our current planning forecast.

Beach Energy’s CEO Matt Kay acknowledges the difficulty in making forecasts in the current environment. He says, “All of us are hopeful that 2021 will be a year of greater stability, but if we learnt anything in the last 12 months, it’s to expect the unexpected.”

And Santos’ CEO Kevin Gallagher points out that energy companies, and investors, should expect some volatility in energy prices and act accordingly.

No-one should be surprised when gas prices go up or down – that’s the nature of our business. Certainly, we have seen a significant recovery in prices over the past months but energy companies get into trouble when they run their business based on prices at the top of the cycle.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Broker thinks these 6 ASX energy shares could go higher
• Leading brokers name 3 ASX shares to buy today
• ASX 200 down 0.4%: Afterpay tumbles, bank shares lower, gold miners crash
• Why PointsBet, Santos, Sayona, & Splitit shares are charging higher today

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

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The S&P/ASX 200 Index (ASX: XJO) dropped by 0.30% to 6,679 points today.

Here are some of the highlights from the ASX:

ARB Corporation Limited (ASX: ARB)

Four-wheel drive accessory company ARB gave a market update today regarding its FY21 first half revenue and profit expectations.

It said that its sales revenue for the first half was $284 million, which represents growth of 21.6% compared to the prior corresponding period.

The revenue growth has led to profit before tax guidance of a range of between $70 million to $72 million, including $9.8 million of one-off government benefits.

ARB said that investors shouldn’t read too much into the result because of the uncertain climate, but it has a positive short-term outlook based on a strong customer order book and another record sales month in December 2020.

It was one of the top performing ASX 200 shares, rising by 6.5% today.

Pushpay Holdings Ltd (ASX: PPH)

Another business to rise on the back of an update was Pushpay, the electronic donation business gave a profit update for FY21 and also announced a new CEO. The Pushpay share price rose 2.7%. 

The new CEO will be Molly Matthews, who is currently the company’s chief customer officer. She will become the CEO on 1 March 2021.

In terms of FY21 profit guidance, the company said that the month of December 2020 was better than expected. Its processing volume achieved in December 2020 combined with continued operating leverage improvements supported a guidance update.

Pushpay upgraded its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) guidance from a range of US$54 million to US$58 million, to a range of US$56 million to US$60 million.

Polynovo Ltd (ASX: PNV)  

The Polynovo share price fell around 12% after giving the market an update.

It said that the FY21 first half revenue was up 31% compared to the corresponding period. There was “strong” sales growth of 75% in the first quarter of FY21, however, sales were then slower than expected in October and November.

In the US, first quarter sales were up 70% and second quarter sales grew 16%, leading to first half sales rising by 41%.

Polynovo Chair David Williams said: “While we have experienced a few bumps from COVID-19, we have built a significant base of new customers which holds us in a strong position. We will continue to expand our customer base which will enhance our success as the pandemic eases.”

Altium Limited (ASX: ALU)

The Altium share price dropped 2% today after the technology business gave another update.

Altium reported that its total first half revenue was down 3% to US$89.6 million because of COVID-19 conditions in the US and Europe, as well as challenging economic conditions in China for licence compliance activities.

The company said that the Americas underperformed with a decline of 10% in revenue for the half as the unprecedented levels of COVID-19 negatively impacted the sales performance.

NEXUS recorded a decline in growth of 14% for the half due to the timing of deals with a significant pipeline in the second half.

Altium said China underperformed with a decline of 15% in revenue for the half as licence compliance activities have become more challenging at the low end of the market due to uncertain economic conditions after COVID-19 in China.

However, Altium did share some positives. It said that board and systems revenue was stronger in the second quarter relative to the first quarter. The first quarter revenue was down 11% year on year, but improved to be flat year on year in the second quarter. This was notwithstanding the significant restructuring undertaken in Altium’s sales organisation to enable the company’s pivot to the cloud.

Electronic manufacturing has rebounded with Octopart benefiting from this recovery and achieving 19% revenue growth for the half. Management said this was a positive leading indicator for PCB design growth that should drive Altium Designer sales in the second half.

There was also strong growth in term-based licences over the first half, up 166%.

More reading

• Objective (ASX:OCL) share price continues its rise in 2021 after doubling last year
• 3 highly rated ASX growth shares to buy now
• Are the recent US elections turbocharging the ASX 200?
• Here’s why the Fortescue (ASX:FMG) share price is up 12% in a month
• 3 ASX shares to buy that fund managers love

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 POLYNOVO FPO and PUSHPAY FPO NZX. The Motley Fool Australia has recommended ARB Limited and 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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The Alderan Resources Ltd (ASX: AL8) share price is lifting today after the mineral explorer announced it has kicked off its exploration drilling program for 2021.

At the time of writing, the Alderan share price is up 4.7% to 11 cents.

What’s pushing the Alderan share price up?

The Alderan share price is pushing higher on news the company has started its first-pass drilling at Black Rock, Utah, in the United States.

The Black Rock target forms part of the Valley-Crossroads Project where Alderan is earning up to a 70% interest through a deal with another mining company, Tamra Mining.

The maiden drill program comes off the back of positive results received from its geological mapping and rock chip sampling. Mainly targeting copper and gold deposits, the company has begun drilling 3 holes with a depth of 1000m to be completed by next Monday.

Previous surface sampling and geological mapping indicated strong mineral and metals results. Most notably, chemical tests conducted recorded up to 4.6 g/t of gold, 10.15% of copper, 125 ppm of molybdenum, 522 ppm cobalt, and 4.3 ppm of tellurium.

In other news, the company said that assay results from a drilling program at the Detroit Project is due to be finished within 2 weeks. Alderan will plan for additional drilling at the project as well as start operations at its White Mountain epithermal gold project. The latter is expected to be concluded sometime during the March quarter.

Management commentary

Alderan managing director Peter Williams, hailed the new maiden drill program, saying:

Our initial surface work at Black Rock has demonstrated the target’s potential to host copper-gold mineralisation. The interpretation of the depth potential, and in particular the thickening of the magnetic body with depth is compelling and we are looking forward to seeing what our initial drill program will deliver.

Our initial results will give us a better understanding of the target and help us plan more focused drilling over the coming months.

How has the Alderan share price performed?

Listing at 2.5 cents this time last year, the Alderan share price has achieved a 340% gain.

While the company’s shares did tumble momentarily to 1.3 cents in April, the months following saw a strong rebound. In June, the Alderan share price reached a multi-year high of 21 cents ahead of its quarterly activities report.

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

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