• 2 outstanding ASX tech shares to buy today

    Global technology shares

    If you’re currently searching for a couple of tech shares to add to your portfolio, then you could do a lot worse than the ones listed below.

    Here’s why these ASX tech shares come highly rated right now:

    Appen Ltd (ASX: APX)

    The first ASX tech share to look at is this global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Appen works closely with some of the biggest tech companies in the world and has a strong position in the government sector through its Figure Eight business.

    Its shares have come under significant pressure recently after it revealed that COVID-19 headwinds were stifling its growth. So much so, the Appen share price is currently trading 48% lower than its 52-week high. Which based on a note out of Macquarie this month, means its shares are currently trading at approximately 31x estimated FY 2021 earnings. The broker appears to believe that this is a buying opportunity for investors that are prepared to make a long-term investment.

    Macquarie is expecting demand for Appen’s services to rebound strongly in 2021 and underpin strong earnings growth. In light of this, it recently reiterated its outperform rating and put a $27.00 price target on its shares.

    Nearmap Ltd (ASX: NEA)

    Another ASX tech share to look at is Nearmap. It is a leading aerial imagery technology and location data company. Nearmap gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means users can undertake site visits from the comfort of their home or workplace, which offers both significant time and cost savings.

    Management appears confident that it is well-positioned for growth thanks to its recent $90 million capital raising and new growth initiatives. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

    Morgan Stanley is positive on the company’s future. The broker currently has an overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.17.

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    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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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  • 2 reliable ASX dividend shares for income investors to buy

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    Are you looking for some reliable ASX dividend shares to add to your portfolio? 

    Then you might want to take a look at the dividend shares listed below. Here’s what you need to know about them:

    BWP Trust (ASX: BWP)

    The first reliable ASX dividend share to look at is BWP Trust. It is a real estate investment trust (REIT) investing in and managing commercial properties throughout Australia. The majority of the company’s properties are large format retailing properties. These are predominantly warehouses leased to home improvement giant Bunnings Warehouse.

    In fact, BWP is the largest owner of Bunnings properties with a total of 68 properties leased to the retailer at present. Bunnings has proven to be a fantastic tenant to have. While many retail landlords have struggled during the pandemic, BWP has continued to thrive thanks to the strong performance of Bunnings.

    Pleasingly, Bunnings’ owner, Wesfarmers Ltd (ASX: WES) has reported very strong sales growth so far in FY 2021 for the home improvement business. This appears to indicate that it will be business as usual for BWP’s rental collections this year.

    Which, based on management’s commentary, is likely to mean a distribution of at least 18.29 cents per unit. And with the current BWP share price trading at $4.30, this will mean a 4.25% yield for investors. 

    Rural Funds Group (ASX: RFF)

    Another reliable dividend share to look at is Rural Funds. It is a REIT that owns a diversified portfolio of high quality Australian agricultural assets.

    At the end of FY 2020, Rural Funds owned a total of 61 properties with a combined value of $1 billion and an ultra long weighted average lease expiry (WALE) of 10.9 years. From these properties it grew its adjusted funds from operations (AFFO) to 11.7 cents per share, allowing the Rural Funds board to increase its full year distribution to 10.8 cents per share.

    In line with management’s targets, it plans to increase its dividend again this year. It intends to increase its distribution by 4% to 11.28 cents per share. Which based on the current Rural Funds share price, works out to be a generous 4.55% yield.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of Wesfarmers 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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  • 5 things to watch on the ASX 200 on Monday

    Investor sitting in front of multiple screens watching share prices

    On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week with a day in the red. The benchmark index fell 0.35% to 6,800.4 points.

    Will the market be able to bounce back from this on Monday? Here are five things to watch:

    ASX 200 expected to rise

    The Australian share market looks set to bounce back on Monday. According to the latest SPI futures, the ASX 200 is poised to open the week 15 points or 0.2% higher. This is despite Wall Street ending the week in a disappointing fashion. On Friday, the Dow Jones fell 0.6%, the S&P 500 dropped 0.3%, and the Nasdaq edged 0.1% higher.

    Oil prices drop lower

    Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price fell 1.6% to US$52.27 a barrel and the Brent crude oil price fell 1.2% to US$55.41 a barrel. Oil prices tumbled after demand fears put a dent in sentiment.

    Tech shares on watch

    It could be a positive day of trade for tech shares including Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) on Monday after US tech shares ended the week at record highs. The tech-focused Nasdaq index climbed a sizeable 4% for the week following some strong quarterly updates.

    Gold price pulls back

    It could be a tough day for gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) after the gold price dropped lower on Friday. According to CNBC, the spot gold price dropped 0.5% to US$1,859.90 an ounce. The price of the precious metal came under pressure after the US dollar firmed.

    Iron ore softens

    BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be on watch today after the iron ore price softened. According to Metal Bulletin, the benchmark iron ore price dropped 0.9% to US$169.97 a tonne. This led to the UK-listed BHP share price falling 1.2% on Friday night.

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    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 Xero. 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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  • These ASX shares are targeting enormous growth over the 2020s

    fund manager standing on increasing tiles of bricks reaching for the stars

    If you’re looking for growth shares to invest in, then you might want to get better acquainted with the ones listed below.

    These two companies are targeting huge growth over the 2020s and could generate outsized returns for investors if they deliver on their plans. Here’s what you need to know about them:

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    The first ASX share that is targeting strong growth over the long term is Domino’s. The pizza chain operator expects to achieve this through the expansion of its store network and same store sales growth.

    In respect to its store expansion, at the end of FY 2020, the company had a network of 2,668 stores across the ANZ, European, and Japan markets. While this is a large number of stores, management still believes there is significant room for growth over the next decade. It aims to more than double its network to 5,500 stores by 2033.  And that’s purely from the markets it is already operating in. Domino’s has the option to expand into new markets organically or through acquisitions.

    As for its sales targets, Domino’s has a medium term target of growing its same store sales by 3% to 6% per annum. If it delivers on this, the combination of the two should underpin strong sales growth.

    One broker that is a big fan of Domino’s is Bell Potter. It recently reiterated its buy rating and $99.30 price target on its shares.

    SEEK Limited (ASX: SEK)

    Another ASX share targeting huge growth over the 2020s is SEEK. It is the dominant job listings company in the ANZ region and has a number of growing businesses around the world. One of those is the Zhaopin business in China. It has been growing at a very strong rate in recent years and has become a key part of the SEEK business.

    Thanks to Zhaopin and its investment in growth opportunities, SEEK is aiming to grow its revenue to a massive $5 billion later this decade. This is over three times larger than the revenue of $1,577.4 million it achieved in FY 2020.

    Analysts at Credit Suisse are positive on the company’s future. They have an outperform rating and $28.50 price target on its shares.

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  • Wilson Asset Management thinks these 2 small cap ASX shares are a buy

    investing, fund manager

    Respected fund manager Wilson Asset Management (WAM) has recently identified two small cap ASX shares that it owns in its portfolio.

    WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

    There’s also one called WAM Microcap Limited (ASX: WMI) which targets small cap ASX shares with a market capitalisation under $300 million at the time of acquisition.

    WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

    The WAM Microcap portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 23.8% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 10.6%.

    These are the two small cap ASX shares that WAM outlined in its most recent monthly update:

    Dusk Group Ltd (ASX: DSK)

    WAM Microcap said that Dusk was one of the significant contributors to the investment portfolio performance during December 2020.

    The fund manager described Dusk as Australia’s leading retailer on home fragrance products such as candles, diffusers and essential oils through its 115 owned and operated stores across Australia and online.

    In a December trading update, the small cap ASX share provided sales guidance for the first half of FY21 of between $90 million to $90.5 million, up from $58.7 million in the first half of FY20.

    Its earnings before interest and tax (EBIT) guidance for the FY21 first half was between $26 million to $27 million, up from $9.7 million in the prior corresponding period.

    During the coronavirus pandemic, WAM Microcap said that Dusk has benefitted from consumers spending more time at home which has increased demand for comfort-related products. The company estimates net cash at the end of December of approximately $33.5 million. The fundie continues to see a positive outlook for the company driven by the roll out of new stores across Australia.

    Sovereign Cloud Holdings Ltd (ASX: SOV)

    This business trades as AUCloud and was listed in December 2020. WAM Microcap described the small cap ASX share as an infrastructure as a service (IaaS) company supporting the secure and continuous delivery of information to the Australian government, the Australian Defence Force (ADF) and ‘critical national industry’ communities.

    WAM Microcap invested in AUCloud through a pre-initial public offering investment, as part of the strategy implemented following the WAM Microcap capital raising in August 2020.

    The fund manager said that AUCloud has a successful partner channel with a number of the largest global software companies and a strong market opportunity, with the company estimating the Australian government will spend in excess of $13 billion per year on information and communications technology through to 2030.

    According to WAM Microcap, the small cap ASX share is well positioned to capitaliise on the investment initiatives as a direct provider of IaaS services and through a channel partner selling into the Australian government or ADF. The AUCloud share price rose more than 50% on its first day of trading.

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    Motley Fool contributor Tristan Harrison owns shares of WAM MICRO 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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  • 2 blue chip ASX dividend shares to buy next week

    thumbs up

    Luckily in this low interest rate environment, the Australian share market is home to a good number of shares that are expected to provide yields which are vastly superior to anything you’ll find with savings accounts and term deposits.

    But which ASX dividend shares should you be buying next week when the market reopens? Listed below are two blue chip dividend shares that have recently been given buy ratings:

    Australia and New Zealand Banking GrpLtd (ASX: ANZ)

    The first ASX dividend share to look at is banking giant ANZ Bank. With home loan growth tipped to accelerate, COVID-19 loan deferrals reducing nicely, and responsible lending rules easing, things are looking significantly more positive for the bank at present.

    And with APRA removing dividend payment restrictions, this bodes well for dividends in FY 2021. In fact, according according to a note out of Citi, its analysts are forecasting a $1.20 per share dividend in FY 2021. This represents a fully franked 4.9% yield.

    Citi also sees upside for its shares over the next 12 months. The broker has an add rating and $26.50 price target on its shares.

    Telstra Corporation Ltd (ASX: TLS)

    Another blue chip ASX dividend share to consider buying next week is Telstra. As with ANZ, Telstra has gone through a difficult period but appears to be coming out of it now. This is thanks to its T22 strategy, the arrival of 5G internet, and its plan to unlock value through asset sales.

    One broker that is very positive on the telco giant is Macquarie. Its analysts recently retained their outperform rating and lifted the price target on its to $4.00.

    Macquarie also expects the company to be able to maintain its 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this equates to a 5% dividend yield.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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  • Top brokers name 3 ASX shares to buy next week

    blackboard drawing of hand pointing to the words buy now

    Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

    Here’s why brokers think investors ought to buy them next week:

    Appen Ltd (ASX: APX)

    According to a note out of Macquarie, its analysts have retained their outperform rating but cut the price target on this artificial intelligence services company’s shares to $27.00. The broker notes that the Appen share price has pulled back materially over the last few months due COVID headwinds. It sees this as a buying opportunity and expects these headwinds to ease in 2021. Though, it does note that foreign exchange headwinds are unlikely to be going away any time soon. Hence why the broker has reduced its price target. The Appen share price ended the week at $22.70.

    NEXTDC Ltd (ASX: NXT)

    Analysts at Morgans have retained their add rating and $13.89 price target on this data centre operator’s shares. According to the note, the broker believes that NEXTDC is on course to at least achieve its guidance in FY 2021 and expects it to be reiterated at its half year results. Looking further ahead, Morgans believes NEXTDC’s outlook is very positive thanks to the structural shift to the cloud. The NEXTDC share price last traded at $11.81.

    ResMed Inc. (ASX: RMD)

    A note out of Credit Suisse reveals that its analysts have retained their outperform rating but trimmed the price target on this medical device company’s shares to $29.50. According to the note, the broker is expecting ResMed to report strong mask sales in FY 2021 due to COVID-19 related re-supplies. In addition to this, the broker believes ResMed is well-placed to benefit from the shift to home healthcare thanks to its high level of investment in out of hospital solutions in recent years. The ResMed share price ended the week at $27.90.

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    James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia has recommended ResMed Inc. 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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  • 2 ASX growth shares to buy for big returns

    A woman holds a tape measure against a wall painted with the word BIG, indicating a surge in gowth shares

    If you’re a growth investor then you’re in luck. This is because the Australian share market is home to a large number of quality shares that have the potential to grow strongly in the coming years.

    Two top growth shares that have been tipped as buys are listed below. Here’s why they are highly rated:

    CSL Limited (ASX: CSL)

    The first share to look at is CSL. It is one of the world’s leading biotherapeutics companies and home to the high quality CSL Behring and Seqirus businesses.

    CSL Behring is the global leader in plasma therapies, whereas Seqirus is the second largest influenza vaccines business. Both have been growing at a solid rate in recent years and have been tipped to continue this trend in the future thanks to their leading therapies and lucrative research and development pipelines.

    In respect to the latter, CSL’s pipeline contains a number of highly promising products that have the potential to generate significant revenues in the future. One of those is clazakizumab, which is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion eventually.

    UBS recently retained its buy rating and $346.00 price target on CSL’s shares. This compares very favourably to the latest CSL share price of $274.60.

    Nearmap Ltd (ASX: NEA)

    Another ASX share to look at is Nearmap. It is an aerial imagery technology and location data company with operations in the ANZ and North American market.

    Its aerial imagery and data insights shift location analysis out of the field and into the office. Management notes that this gives businesses the tools to scale quickly and bring their most important initiatives to life.

    Thanks to geographic expansions, new growth initiatives, and the quality of its offering, management believes the company is well-positioned for growth in the future. As a result, it is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

    Analysts at Morgan Stanley are positive on the company and have an overweight rating and $3.10 price target on its shares. This compares to the current Nearmap share price of $2.17.

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    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 CSL Ltd. and Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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  • Top brokers name 3 ASX shares to sell next week

    ASX shares to avoid

    Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

    Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

    Blackmores Limited (ASX: BKL)

    According to a note out of Citi, its analysts have retained their sell rating and $60.60 price target on this health supplements company’s shares. The broker has concerns over the company’s performance in the key China market. Particularly given its market research, which is pointing to market share gains by the is largest competitors. In addition to this, it notes that competition is intensifying in the ANZ market and the daigou channel remains challenged. The Blackmores share price ended the week at $71.63.

    Magellan Financial Group Ltd (ASX: MFG)

    Analysts at Morgan Stanley have retained their underweight rating and cut the price target on this fund manager’s shares to $41.20. According to the note, the broker has trimmed its price target to reflect changes in its business model that it feels reduces the appropriate price to earnings ratio that its shares trade at. In addition to this, it believes the market is not pricing in a number of risks it is facing and weaker returns from its funds. The Magellan share price last traded at $47.73.

    QBE Insurance Group Ltd (ASX: QBE)

    A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $7.70 price target on this insurance giant’s shares. The broker notes that QBE has added an additional US$185m risk margin to cover potential business interruption claims in Australia following an unfavourable ruling in British courts. Outside this, it has concerns over QBE operating through a very difficult period without a permanent CEO. It is also expecting the insurance giant to make huge cuts to its dividend this year. The QBE share price ended the week at $8.45.

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  • 3 exciting ASX tech shares to buy

    Investor with palm up and graphic illustration of asx small cap tech shares charts shooting from his hand

    There are some exciting ASX tech shares available to Aussie investors.

    Here are three that might be able to make decent returns:

    Betashares Global Cybersecurity ETF (ASX: HACK)

    This exchange-traded fund (ETF) looks to give exposure to some of the world’s leading cybersecurity businesses.

    Betashares says that cybersecurity is fast-growing sector, with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

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

    In terms of the country allocation, the US gets the vast bulk of the weighting with an 88.5% allocation of the ASX tech share’s portfolio. The UK, Israel, Japan and France are the only other countries with a weighting of more than 1%.

    The biggest positions in the Betashares Global Cybersecurity ETF include: Crowdstrike, Zscaler, Cisco Systems, Accenture, Splunk, Fireeye, Proofpoint, Sailpoint Technologies, F5 Networks and Palo Alto Networks.

    Management costs are 0.67% per annum. The ETF’s returns after fees are as follows: 36.75% over the past year, 25.6% per annum over the last three years and 21.4% per annum since inception in August 2016.

    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 business that’s liked by fund manager by WAM Microcap Limited (ASX: WMI) and is one of the top holdings. 

    The ASX tech share is benefiting from an increase in travel as well as the reopening of travel between Australia and New Zealand. Last year Serko raised NZ$67.5 at NZ$4.55 per share to strengthen its balance sheet.

    It wasn’t too long ago that Serko released its FY21 half-year result where it said that operating revenue had dropped 66% to NZ$5.1 million. Half-year total travel bookings for the six months had declined 77%, but it has improved to being down 65% for October 2020.

    Serko was projecting that travel volumes would be in the range of 40% to 70% of pre-COVID-19 levels by March 2021.

    Pushpay Holdings Ltd (ASX: PPH)

    The electronic giving ASX tech share is a payments facilitator for large and medium US churches.

    Pushpay recently increased its operating profit guidance again.

    It said that its processing volume over the month of December 2020 was slightly higher than the company’s internal forecast when guidance was last update. While December donation volumes are usually significantly higher than other months partially driven by tax year-end giving in the US, the level of the increase can vary from year to year.

    Management said that the company’s processing volume achieved in December 2020 combined with continuing operating leverage improvements supports a guidance update.

    Pushpay also said that it has allocated an initial investment of resources into developing and enhancing the customer proposition for the Catholic segment of the US faith sector. The company said investment into the Catholic segment represents a significant milestone as Pushpay continues to work on being the preferred provider of mission critical software to the US faith sector.

    Previous guidance was US$54 million to US$58 million, it then upgraded that guidance for FY21 to a range of between US$56 million and US$60 million. However, it said that uncertainties and impacts surrounding COVID-19 and the broader US economic environment remain. Pushpay expects operating leverage to continue to accrue to the business over the remainder of the current financial year.

    At the current Pushpay share price it is valued at 26x FY22’s estimated earnings.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of June 30th

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    Tristan Harrison owns shares of WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS, PUSHPAY FPO NZX, and Serko Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX 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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