In late morning trade the S&P/ASX 200 Index (ASX: XJO) has bounced back from yesterday’s weakness and is storming higher. At the time of writing, the benchmark index is up 1.25% to 6,690.3 points.

Four shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Atomos Ltd (ASX: AMS)

The Atomos share price has jumped 11% to $1.09. Investors have been buying the global video technology company’s shares after the release of a trading update. That update revealed that Atomos achieved sales of $32.6 million during the first half. This was well ahead of its previous guidance of ~$28 million. Management advised that sales momentum in the later months of the half accelerated after its customers adjusted to a new COVID norm.

BOD Australia Ltd (ASX: BDA)

The Bod Australia share price has surged 11.5% higher to 48 cents. Investors have been buying the medicinal cannabis company’s shares after it reported strong sales growth. According to the release, Bod filled a total of 3,941 MediCabilis prescriptions during the last six months. This marks a 91% increase on the previous six months and a 114% increase on the prior corresponding period. Bod has now filled over 8,000 MediCabilis prescriptions since July 2019.

Galaxy Resources Limited (ASX: GXY)

The Galaxy share price is up a further 7% to $2.82. This lithium miner’s shares have been on fire over the last few months after lithium prices improved. In fact, an update by rival Pilbara Minerals Ltd (ASX: PLS) on Wednesday revealed that the Platts Battery Grade lithium carbonate pricing is up 35% to date from its lows in August 2020.

Zebit Inc (ASX: ZBT)

The Zebit share price has jumped 11% to $1.05 following the release of a trading update. That update revealed that the ecommerce company achieved net sales of US$44.8 million in the final quarter of 2020. This was a 35.2% increase on the prior corresponding period. Management advised that this was due to the strong trading conditions recorded throughout the peak shopping season.

More reading

• Why the Zebit (ASX:ZBT) share price is jumping 12% today
• Why ASX lithium shares are running hot in 2021
• Why Galaxy (ASX:GXY) and these ASX shares just hit 52-week highs or better
• Why Costa, Galaxy, Oil Search, & Ramelius shares are pushing higher
• These ASX shares have more than doubled in 2020

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Atomos Ltd. The Motley Fool Australia has recommended Atomos 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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The Oil Search Ltd (ASX: OSH) share price has rocketed higher in early trade as oil prices continue to soar.

Why is the Oil Search share price surging?

Oil Search is the largest oil and gas exploration and development company incorporated in Papua New Guinea.

According to the company’s FY20 interim result, Oil Search produced 14.7 million barrels of oil equivalent (mmboe) for the half year ended 30 June 2020.

That makes Oil Search one of the larger producers on the ASX alongside the likes of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).

2020 was a bitter pill to swallow for investors as the Oil Search share price plummeted more than 50% in the March bear market.

Shares in the Aussie oil producer fell from $7.91 in late January to just $1.81 in March 2020. That came as coronavirus shutdowns crimped demand for energy in key industries like manufacturing and travel.

However, the Oil Search share price has started the year strongly and climbed 5.7% higher in early trade on Thursday. At the time of writing, the Oil Search share price is trading up 5.53% at $4.10.

Other major energy producers are also seeing share price gains this morning. The Woodside share price is up 2.6% to $23.80 per share while Santos shares are trading 4.17% higher at $6.74 per share.

That comes as oil prices continue to recover and surge to new 10-month highs. Crude oil prices are at their highest level since February 2020 after Saudi Arabia flagged surprise output cuts on Tuesday.

Saudi Arabia is set to voluntarily cut 1 million barrels of production per day in good news for investors. The Oil Search share price has jumped on the news and is now up 9.0% this week.

Foolish takeaway

Shares in Aussie oil producers are climbing higher to start the day on Thursday. A surprise OPEC+ cut and positive momentum for the S&P/ASX 200 Index (ASX: XJO) are helping kickstart a good opening week in 2021.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 drops 1.1%
• What strong jobs data means for ASX 200 shares
• ASX 200 down 0.5%: Energy shares jump, big four banks fall, Zip climbs higher
• Why Fortescue, Nick Scali, Santos, & Zip shares are charging higher

Motley Fool contributor Ken Hall 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) is on course to bounce back strongly from yesterday’s weakness. In late morning trade the benchmark index is up 1.2% to 6,687.8 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is down 2% to $10.95. This appears to have been driven by profit taking from investors after some very strong gains over the last couple of days. In fact, the furniture retailer’s shares hit a new record high on Wednesday. Investors have been buying the company’s shares after it revealed that its profits would double in the first half of FY 2021.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is down 2% to $3.21 despite there being no news out of the software company. However, prior to today, the Nitro share price was up over 100% over the last 12 months. This may have led to a spot of profit taking from investors this morning.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price has tumbled 4% lower to $1.92. Investors have been selling the gold miner’s shares on Thursday after the price of the precious metal pulled back sharply overnight. This was driven by a stronger US dollar and the widening on treasury yields. It isn’t just Silver Lake that is dropping lower. The S&P/ASX All Ordinaries Gold index is down 0.9% at the time of writing.

Xero Limited (ASX: XRO)

The Xero share price has fallen 4% to $141.50. Once again, this appears to have been driven by profit taking. This has particularly been the case in the tech sector on Thursday, which has led to the S&P ASX All Technology Index (ASX: XTX) sinking 1.3% lower today. Despite today’s decline, the Xero share price is still up 75% since this time last year.

More reading

• Do ASX mining companies carry the Australian share market?
• Why these ASX shares just stormed to 52-week highs or better
• Are heads in the clouds with these sky high P/E ratios?
• Why Fortescue, Nick Scali, Santos, & Zip shares are charging higher
• Insiders have been buying these ASX shares

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 has recommended Nitro Software 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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Zebit Inc (ASX: ZBT) shares are on the run today after the company provided the market with a positive trading update. At the time of writing, the Zebit share price is flying 11.58% higher to $1.06.

What’s driving the Zebit share price higher?

The Zebit share price is surging this morning following the company’s report it has achieved record net sales for its FY20 fourth quarter and full year performance.

The company delivered net sales of US$44.8 million in the final quarter, which trumped the previous corresponding period by 35.2%. Management said this was due to the strong trading conditions recorded throughout the peak shopping season. In December alone, net sales accounted for US$21.3 million, which was also 55.4% above the same time last year.

This flowed through to the company’s full year FY20 performance in which Zebit achieved total net sales of US$88.1 million, exceeding FY19’s result.

In the update, Zebit also highlighted that its registered user base grew to 792,000 at the end of the year. This was complemented by the company completing eight B2B acquisition partnerships during the period, which added 28,800 registered users in the fourth quarter.

About Zebit

Based in California, United States, Zebit is an e-commerce company that sells products and provides financing to financially challenged customers.

Its platform offers a built-in buy now, pay later (BNPL) facility, servicing customers who are unable to access traditional credit. Zebit shares first listed on the ASX in October 2020.

Management remarks

Commenting on the company’s achievement, Zebit president and CEO Mr Marc Schneider said:

The strength of Zebit’s performance through Q4 is a bellwether for the increasing demographic of consumers who value and repeatedly use the company’s e-commerce services.

We expect strong growth in 2021 as we expand our reach in helping the increasing number of Americans living paycheck to paycheck purchase everyday products that many of us take for granted.

In addition to its primary e-commerce sales channel, as physical retail stores reopen, Zebit will also enable consumers to continue to finance purchases in physical retailers through sales of electronic gift certificates on our platform that can be redeemed in brick and mortar.

About the Zebit share price

On its first day of trading on 26 October 2020, the Zebit share price opened at $1.50 after floating at an issue price of $1.58. By the end of the day, Zebit shares closed the session at $1.05. By early Decmber, the Zebit share price fell to just below the $1 mark and since then has traded around the same level prior to today’s rise.

Based on current prices, the company has a market capitalisation of around $90 million. 

More reading

• These were 2 of the worst performing IPOs of 2020
• Here’s how ASX buy now, pay later (BNPL) shares have performed in 2020

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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The All Ordinaries Index (ASX: XAO) has been having a pretty flat week. Upon today’s opening, the ASX commented that, “Over the last five days, the index has gained 1.59%, but is virtually unchanged over the last 52 weeks.” 

While the All Ords plods along, one sector that seems to be on the rise is the Materials sector having gained around 2.5% over the past month.

On Tuesday, the Australian Financial Review noted that while the market closed slightly lower, Silver Lake Resources Limited (ASX: SLR), Newcrest Mining Ltd (ASX: NCM), Lynas Rare Earths Ltd (ASX: LYC), Westgold Resources Ltd (ASX: WGX) and Ramelius Resources Limited (ASX: RMS) had all posted nice gains for the day.

During times likes this when most other sectors don’t seem to be keeping up, it poses the question: Does the Australian share market always rely on the mines to carry it along?

The largest industry sector

According to the ASX, “The Metals & Mining sector is the largest industry sector by number of companies with over 700 companies involved in mineral exploration, development and production across 100 countries.”

There are currently 2,008 companies listed on the ASX in total. Out of these 2,008 companies, 200 rise to the top rated by market capitalisation. These are the guys featured on the S&P/ASX 200 Index (ASX: XJO). That said, the Materials sector (which incorporates Metals and Mining) comes in second place according to the index’s sector breakdown, after Financials. 

So which shares post the biggest gains?

Best performing ASX shares of 2020

Taking a closer look at the best performing ASX 200 shares of 2020, two out of the top five fall into the Materials sector. This includes Fortescue Metals Group Limited (ASX: FMG) and Minerals Resources Limited (ASX: MIN). The other three sectors that made the cut were Information Technology, Consumer Discretionary and Financials.

If we look at the top performers of the 2020 financial year, Perseus Mining Limited (ASX: PRU) and Mesoblast Limited (ASX: MSB) both snatched up a spot. Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) took fourth place while Afterpay Ltd (ASX: APT) grabbed the number one position posting a monstrous 150% gain for the period.

Foolish takeaway

Considering the top ASX 200 listed sectors and recent best performers, there’s no doubt that the Metals and Mining industry certainly boasts a stronghold in the Australian sharemarket. However, let’s not forget that the index encompasses 11 sectors in total.

While mining giants like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are some of the biggest listed ASX companies, that doesn’t mean they’ll always be the best performer or deliver the most value — particularly given the market’s day-to-day volatility and the number of companies working hard to also gain top spots in FY21.

More reading

• ASX 200 drops 1.1%
• ResMed (ASX:RMD) share price returned 20% in 1 year. Where to in 2021?
• Goldman points to commodities super-cycle: Which ASX mining shares will benefit?
• Why Fortescue, Nick Scali, Santos, & Zip shares are charging higher
• How to invest in ASX shares in a post-COVID world 

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. 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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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.

Less than a month after winning emergency use authorization (EUA) from the United States Food and Drug Administration (FDA) for its coronavirus vaccine, Moderna Inc (NASDAQ: MRNA) has scored another major regulatory nod.

On Wednesday, the company announced that the European Commission — the executive arm of the 27-country European Union (EU) — granted conditional marketing authorization (CMA) for the company’s mRNA-1273.

Moderna’s vaccine is now authorized for use against the coronavirus in four jurisdictions. Besides the EU and the US, it has also been cleared in Canada and Israel.

The EU currently has a confirmed order totaling 160 million doses of Moderna’s vaccine. The company said in its announcement that the first deliveries of these will occur next week.

Referring to the European Medicines Agency (EMA) and one of its key advisory bodies, Moderna CEO Stephane Bancel was quoted by the company as saying that “The EMA and the Committee for Medicinal Products for Human Use reviewers, working over the holidays, provided a thorough review and comprehensive guidance as we worked together to achieve this authorization.”

“I am proud of the role Moderna has been able to play globally in helping to address this pandemic,” he added.

The new authorization, while widely expected, is nevertheless a triumph for Moderna. The EU is a massive political and social block home to 446 million souls, a tally that dwarfs even the populous US. Meanwhile, the company has manufacturing capacity sufficient for a quick and wide rollout throughout Europe.

Investors are clearly happy about the news. In mid-afternoon trading Wednesday, Moderna was far outpacing the rise of the S&P 500 Index (SP: .INX), with the stock up by more than 6%.

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

More reading

• How MRNA stock performed in 2020
• The worst mistake Moderna investors can make right now
• Why Moderna stock fell 32% in December
• Moderna’s stock has surged 488% in 2020: Is it a buy for 2021?
• Here are the US shares ASX investors are buying

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

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Warren Buffett has always held a large amount of cash. However, in 2020 his cash pile reached a record level of around $137 billion.

Alongside Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B)’s purchase of gold miner Barrick Gold Corp (NYSE: ABX), this suggested to some investors that the Oracle of Omaha was readying himself for the next stock market crash.

However, subsequent sales of shares in the gold miner and a long history of holding vast amounts of cash indicate that Buffett is permanently ready to capitalise on the next market downturn.

Following a similar approach could be very worthwhile for all investors. By holding cash, and identifying high-quality companies ahead of a bear market, it is possible for an investor to use market cycles to their advantage.

Warren Buffett’s large cash resources

Warren Buffett is likely to hold cash for two main reasons. The first is that it provides peace of mind. An investor who is not fully invested is more able to overcome unforeseen financial challenges that would otherwise force them to sell shares. For example, they may lose their job or have unexpected housing repair costs that require immediate access to cash.

The second reason to hold cash is to capitalise on market downturns. The stock market is almost inevitably going to experience a major crash over the coming years. After all, its past performance shows that the market rally experienced in the second half of 2020 will eventually run out of steam. Some crisis or threat will cause investor sentiment to deteriorate, which will produce significantly lower stock price valuations.

Investors such as Warren Buffett will be in a financial position to capitalise on them. As the 2020 stock market crash showed, the window of opportunity to buy companies at low prices can be relatively short.

Identifying high-quality companies ahead of a market crash

As well as following Warren Buffett in holding large amounts of cash, identifying high-quality companies ahead of a market crash could be a sound move. For example, at the present time an investor may be able to find a number of businesses that have solid financial positions and competitive advantages. However, they may trade at prices that lack a margin of safety.

Keeping tabs on the financial performance and developments of such companies can be a sound move. It will enable an investor to be in a position to understand a business comprehensively so that they can quickly react to a short-term decline in its share price. This may allow them to buy high-quality companies at low prices. Over the long run, such a strategy can be highly effective in generating market-beating returns.

Planning for the next market downturn

Warren Buffett appears to be in a constant state of preparedness for the next stock market crash. His large cash position means he can invest quickly and decisively in a market downturn. An investor who puts themselves in the same position through holding cash and identifying high-quality companies today could generate impressive returns in a stock market rally.

More reading

• 3 things to expect from Berkshire Hathaway in 2021
• World’s 10 biggest companies are now worth 12% of Earth’s GDP
• Why Berkshire Hathaway is a retiree’s dream stock

Motley Fool contributor Peter Stephens 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 Berkshire Hathaway (B shares) and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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 ASX Ltd (ASX: ASX) share price is on the move on Thursday after the release of its activity report for December and the calendar year.

At the time of writing, the stock exchange operator’s shares are up 0.5% to $72.67.

How did ASX perform in December?

During the month of December, the average daily number of Cash Market trades was 6% lower than the prior corresponding period.

However, the average daily value traded on-market was 22% higher than the prior corresponding period at $5.6 billion.

This led to the average daily number of trades coming in at 1,725,560 for the year, which was 8% higher than in calendar year 2019. The average daily value traded on-market was $6.5 billion for 2020, up 34% year on year.

This solid increase in the number of trades appears to have been driven by a surge in first-time investors last year. A large number of new investors started investing after the COVID-related market crash early in the year.

Things were not quite as positive for its Futures business. In December, the average daily futures volume was down 22% and average daily options volume was down 83% on the prior corresponding period.

As a result, average daily futures and options on futures volume was 606,033 over the year, which was 14% lower than in calendar year 2019.

It was a similar story for its OTC Markets business in December. The notional value of OTC interest rate derivative contracts centrally cleared was $814.6 billion for the month, compared to $1,447.2 billion a year earlier.

This led to the notional value of OTC interest rate derivative contracts centrally cleared coming in at $9,174.7 billion in 2020. This is down 38% from $14,733.3 billion in calendar year 2019.

Finally, ASX reported a 15% decline in average daily number of single stock options for the year and a $1.8 billion increase in participant margin balances from exchange-traded markets.

More reading

• ASX ordered to take a good look in the mirror
• Why zero-fee apps will never exist for ASX shares
• Top brokers name 3 ASX shares to sell next week

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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The Mayne Pharma Group Ltd (ASX: MYX) share price is pushing higher on Thursday morning.

In morning trade the pharmaceutical company’s shares are up 3% to 36 cents.

Why is the Mayne Pharma share price pushing higher?

There have been a couple of catalysts for Mayne Pharma’s share price gain on Thursday.

The first is improving investor sentiment following positive developments in the US senate overnight. The other is the release of an announcement by Mayne Pharma this morning.

That announcement revealed the commercial launch of Microgestin 24 FE to customers in the United States.

According to the release, Microgestin 24 FE tablets are a generic version of Loestrin 24 FE tablets, which are indicated for the prevention of pregnancy.

The IQVIA estimates that the annual US market sales of the generic equivalents of Loestrin were approximately US$75 million for the twelve months ended October 2020.

Mayne Pharma’s CEO, Scott Richards, commented: “We are very pleased to launch MICROGESTIN 24 FE which complements our existing women’s health portfolio of branded generic contraceptives. As one of the leading suppliers of oral contraceptives in the US, we continue to focus on expanding our portfolio with novel and generic products.”

Mr Richards advised that this will be the first of a number of new contraceptive product launches in 2021.

“Mayne Pharma expects to launch up to seven new contraceptive products over the coming year including the novel oral contraceptive NEXTSTELLIS (E4/DRSP), a generic version of NUVARING and a further five generic products.”

This is expected to give Mayne Pharma a strong position in the US market.

“Mayne Pharma’s women’s health portfolio includes 27 marketed and pipeline products which cover more than 85% of US oral contraceptive prescription volumes. MICROGESTIN 24 FE is the first of five anticipated new product launches sourced from the recently announced strategic partnership with Novast Laboratories,” the CEO concluded.

More reading

• Which ASX shares will China ‘punish’ next?

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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The Bubs Australia Ltd (ASX: BUB) share price was a very disappointing performer in 2020.

Over the 12 months, the goat milk infant formula and baby food company’s shares lost a massive 40% of their value.

Why did the Bubs share price crash lower in 2020?

As with its larger and profitable rival A2 Milk Company Ltd (ASX: A2M), 2020 was a tale of two halves for Bubs.

At one stage the company’s shares were up 19% year to date to a 52-week high of $1.19. Investors had been buying its shares after it delivered a strong third quarter update for FY 2020.  

That update revealed record quarterly revenue of $19.7 million, which was up 67% on the prior corresponding period and a 36% lift on the second quarter.

But what was getting investors especially excited was news that it was finally generating positive operating cashflow. For the quarter, Bubs recorded positive operating cashflow of $2.3 million.

This was a massive positive and appeared to demonstrate that Bubs had finally reached a scale which meant its operations were profitable. This followed years of highly dilutive capital raisings and significant cash burn.

Cash burn returns.

However, this positive operating cash flow did not last long and Bubs was operating at a loss again in the fourth quarter. In fact, the company burned through $10.3 million of cash during the quarter.

And lo and behold, yet another capital raising was just around the corner. Bubs raised $28.3 million via a placement to new and existing institutional and sophisticated investors at 80 cents per share in September.

It then raised a further $3.8 million from retail shareholders via a share purchase plan. This fell well short of its $10 million target.

While this left it with a cash balance of $42.6 million at the end of the first quarter, these funds won’t last long if it doesn’t sort out its cash burn quickly. During the quarter Bubs recorded an operating cash outflow of $10.15 million.

And given how challenging trading conditions are in the daigou channel right now, an uptick in its performance is far from guaranteed.

Bubs’ second quarter update will be released in the coming weeks. Shareholders will no doubt be watching that one very closely.

More reading

• Here’s why Bubs (ASX:BUB) and this ASX share are underperforming in 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk and BUBS AUST 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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