The Next Science Ltd (ASX: NXS) share price has fallen today as the company released its quarterly report. On a day where the All Ordinaries Index (ASX: XAO) has dropped 1.9%, the Next Science share price has also fallen in afternoon trading, down 0.85% at $1.16 at the time of writing.

What Next Science does

Next Science is a medical technology company headquartered in Sydney, Australia. The company, established in 2012, is focused on the development and continued commercialisation of its Xbio platform. The technology aims to reduce the impact of biofilm-based infections in human health.

The 100% patented product attacks biofilm structures by breaking metallic bonds that hold the extracellular polymeric substance together.

Quarterly report

Unfortunately for the Next Science share price, the resumption of clinic based treatments has been slower than the resumption of surgical activity. Consequentially, this has impacted BlastX sales.

As a result, cash receipts from customers in Q3 2020 were US$134,000, declining from the prior quarter. Furthermore, operating expenses rose to US$3.9 million, the increase mainly relating to increased R&D expenditure on XPerience surgical rinse.

Next Science also announced the launch of a capital raising during the quarter. The company successfully raised $15 million and holds cash of US$13.6 million as of 30 September as a result.

In some good news for the company, it announced that Bactisure sales had started in Australia and were expected to commence in Europe by the end of 2020.

What now for the Next Science share price

Despite the drop in the Next Science share price, good news may be on the horizon. This comes in the form of an increase of elective surgeries. Surgery levels in the US have continued to improve in Q3 compared to Q2 levels.

Furthermore, Brian Hanson, CEO of Zimmer Biomet, Next Science’s distribution partner for Bactisure, addressed the Wells Fargo Healthcare Congress on 3 September. He advised that “Zimmer expects Q4 2020 to be equivalent in surgical volume to Q4 2019.”

Looking forward the main focus for the business in Q4 is continuing to drive market adoption of SurgX (Next Science’s sterile wound gel to reduce surgical site infection). The company also aims to build market awareness of its XbioTM technology in preparation for its launch in the first half of next year.

The Next Science share price has fallen 0.85% lower at the time of writing.

More reading

• Should you follow Buffett into buying gold shares?
• Are Coles (ASX:COL) or Woolworths (ASX:WOW) shares a better ASX dividend buy today?
• Leading brokers name 3 ASX shares to sell today
• Why these 7 ASX 200 shares received broker upgrades this week
• Why is the Bravura (ASX:BVS) share price dropping today?

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Warren Buffett’s aversion to gold has been well documented. Over the last few decades, he has steered Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B) away from any direct or indirect investments in gold. In 2011, he explained to CNBC’s Squawk Box talk program that “gold is a way of going long on fear”.

This is what The Oracle of Omaha actually said during the talk show program:

Basically gold is a way of going long on fear, and it’s been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in the year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money. But the gold itself doesn’t produce anything.

Buffett then made a shocking move

In August 2020, Buffett shocked the investing world when he revealed that his mothership company, Berkshire Hathaway, purchased US$563.6 million or a 1.2% stake in a major United States gold miner Barrick Gold Corp (NYSE: GOLD). The move was even more surprising because by the time he made this purchase, the gold price had already increased by 15% since March.

His investment clearly gave a strong signal to the market that he expected gold prices to remain high over the long term, as he is not known to make flippant investments for short-term profits. Indeed, the gold price did rally after the announcement, moving as high as US$2,035/oz in late August before retreating to the current level of US$1,903/oz.

How should we interpret Buffett’s gold investment?

There are two ways we can read into Buffet’s Barrick investment. One way to look at it is that Buffett is expecting the pandemic and consequent market uncertainties to be prolonged indefinitely. This is consistent with his view that “gold is a way of going long on fear”. In this instance, his Barrick investment can then be regarded as a substitute for pure, precious metal play. 

Another way to interpret his investment is that Buffett is not actually buying exposure directly into gold metals, but rather seeing fundamental value and growth prospects in Barrick as a business. This line of thought has been previously dissected by one of my Fool colleagues here. 

However you look at it, one thing is for sure: precious metal is one of the winners in this pandemic. Gold has jumped by nearly 30% since the beginning of the year, while silver metal is faring even better, up 35% since January. This affirms the fact that rare metals, particularly gold, provide safe haven during market volatility, the likes of which we are currently experiencing.

Getting exposure to gold

So how do you get exposure to gold in Australia? It turns out you have various options, but in my opinion, exchange-traded funds (ETFs) provide the best way to get diversified exposure to the gold market.

ETFs provide both liquidity and diversification, and here I consider three gold ETFs, each with a different twist:

The ETFs Metal Securities Australia Ltd (ASX: GOLD) is the largest gold ETF on the ASX with approximately $2 billion under management. This ETF provides exposure to physical ownership of gold bullions in a vault. The fund has a 1-year total return of 19% and a 5-year total return of 10% p.a.

The Perth Mint Gold ETF (ASX: PMGOLD) is a smaller ETF fund with lower management fees. With PMGOLD, the gold is unallocated which means you do not own the physical gold in your name. It is almost like a derivative security where investors get exposure to the price movements while not having ownership of the underlying asset. PMGOLD’s 1-year total return is 27.4%, while its 5-year total return is a respectable 11.15% p.a.

Finally, investors looking for exposure to gold could invest in the VanEck Vectors Gold Miners ETF (ASX: GDX). This ETF is slightly different to the previous two in that it invests in a variety of gold mining companies. According to its website, this ETF’s top three holdings currently are: Newmont Corporation (NYSE: NEM), Barrick Gold and Franco-Nevada Corp (TSE: FNV). Its 1-year total return is a healthy 38.5%, while its 5-year total return is an enviable 24% p.a.

(Note that the total returns of these ETFs assume the reinvestment of all dividends and distributions, not just the return on the share price over time).

More reading

• 3 ways to protect your ASX share portfolio in a market crash

dsunarto 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), long January 2021 $200 calls on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) are two ASX companies with very similar characteristics. Together, both essentially hold an duopoly over the Australian supermarket/grocery market, albeit against small market shares held by both the German-owned Aldi, and the Metcash Limited (ASX: MTS)-owned IGA.

In addition, both companies have tie-ups with petrol retailers, and both have a presence in the liquor/bottleshop market with names like Dan Murphy’s (Woolworths) and Liquorland (Coles). However, Woolworths also owns the Big W store chain, as well as the ALH Group — which in turn owns a network of pubs and hotels.

Due to its larger share in the Aussie grocery market, as well as its additional assets like Big W, Woolworths is by far the larger company today. Woolies, on current prices, has a market capitalisation of $48.34 billion, whereas Coles has a market cap of $22.8 billion.

Both Coles and Woolies are large, established and mature businesses that have been around longer than most people alive today. As such, most investors don’t really buy these companies for their growth prospects, but rather for their dividend income potential.

But since Coles and Woolworths have such similar business characteristics — offering defensive, largely recession-proof earnings bases — I think we should compare the dividend prospects for both companies today.

So let’s dig in.

Coles vs Woolworths: Which is a better dividend buy?

On current pricing, Coles is offering a trailing dividend yield of 3.37%. That number is based on Coles’ two most recent dividends – a February interim payout of 30 cents per share (cps), and an August final payout of 27.5 cps.

In contrast, Woolworths shares are currently offering a trailing yield of 2.45%. That number is based on Woolworths’ two most recent dividends – a March interim payout of 46 cps, and a September final payout of 48 cps.

Both dividends come fully franked, so Coles’ dividend grosses-up to 4.81% with full franking credits, while Woolies grosses-up to 3.5%.

On these raw numbers, Coles appears to be the winner.

But let’s look at both companies’ recent dividend history as well. Coles’ August final dividend was a 14.5% increase on its 2019 final dividend of 24 cps, whilst its interim dividend in 2020 was the first the company paid since its spin-off from old parent, Wesfarmers Ltd (ASX: WES).

In contrast, Woolworths’ final dividend of 48cps was a 15.8% cut from the 57 cps dividend the company paid in 2019. Its March interim payout was a 2.22% increase from 2019’s interim payout of 45 cps.

Foolish takeaway

Since Coles both offers a higher starting dividend yield on current prices today, as well as offering dividend growth in 2020 (as opposed to Woolworths’ cuts), I have to conclude that Coles offers a better deal for dividend investors right now. The difference between a grossed-up yield of 4.81% and 3.5% is not insignificant, so if you’re looking to add one of these companies to an ASX dividend share portfolio, I would go with Coles today.

More reading

• Could this HomeCo (ASX:HMC) REIT IPO be the biggest in 2020?
• Buy these ASX dividend shares in November
• What to expect from the Coles Q1 update this week
• What zero COVID-19 cases in Victoria means for ASX 200 shares
• These are the 10 most shorted shares on the ASX

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

Mineral Resources Limited (ASX: MIN)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating but lifted their price target on this mining and mining services company’s shares slightly to $23.50. This follows the release of a quarterly update that fell short of the broker’s expectations. In light of this and its valuation, which it has previously noted looks stretched, it holds firm with its bearish rating. The Mineral Resources share price is trading at $25.46 this afternoon.

National Australia Bank Ltd (ASX: NAB)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $17.50 price target on this banking giant’s shares. This follows the release of an update on a number of notable items that will impact its full year results. Outside this, it notes that it has exposure to the small to medium sized business market, which it feels is a risky area in the current environment. In light of this, it suspects its shares could underperform over the next 12 months. The NAB share price is fetching $19.02 on Tuesday.

Premier Investments Limited (ASX: PMV)

Analysts at Goldman Sachs have downgraded this retailer’s shares to a sell rating but lifted their price target on them to $19.20. According to the note, the broker points out that Premier Investments is trading on significantly higher multiples than any time over the last decade. It is also at the high end in comparison to global apparel peers. It also has concerns over the sustainability of the current low expense profile and the economic recovery impact on the apparel category. The Premier Investments share price is changing hands for $21.76 today.

More reading

• Why these 7 ASX 200 shares received broker upgrades this week
• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX stocks are outperforming today after brokers upgraded them to “buy”
• Leading brokers name 3 ASX shares to buy today
• AMP (ASX:AMP) asset sales part of wealth sector transformation

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A number of S&P/ASX 200 Index (ASX: XJO) shares in the travel, materials, construction and healthcare sectors have received broker upgrades this week. This follows strong quarterly results and a general anticipated recovery within their respective sectors.

Austal Limited (ASX: ASB) 

Goldman Sachs retained its buy rating on Austal with a price target of $4.35 in anticipation that its annual general meeting commentary will reflect a strong earnings outlook. 

Beach Energy Ltd (ASX: BPT) 

Citi raised its Beach Energy share price target from $1.91 to $1.98 and retains a buy rating. The company’s quarterly production update was solid but slightly missed expectations. It anticipates upside from Beach Energy’s upcoming drilling results. 

Bluescope Steel Limited (ASX: BSL) 

A series of upgrades came in for the Bluescope Steel share price including: 

• Citi raises price target from $14.00 to $16.00 
• Credit Suisse raises price target from $15.55 to $16.95 
• Macquarie raises price target from $16.20 to $19.05 
• Morgan Stanley raises price target from $11.00 to $16.00 
• UBS raises price target from $13.10 to $15.70 

This was on the back of the company’s strong first half results and anticipated benefit from fiscal stimulus measures in Australia and the US. 

CSR Limited (ASX: CSR)

Sticking to the theme of materials and construction, Credit Suisse upgraded the CSR share price target from $4.10 to $5.30. It expects fiscal stimulus measures to underpin earnings in the short-medium term. 

National Australia Bank Ltd (ASX: NAB)

The NAB share price received mixed broker opinions. Credit Suisse retained an outperform rating with a $21.30 price target and UBS retained a buy rating with a $20.50 price target. The brokers believe that the company is on top of the current situation and should continue to navigate sensibly through the crisis. 

Conversely, Macquarie retained an underperform rating with a $17.50 price target. While it considers the valuation attractive, it has concerns about earnings risks in the short-medium term. 

Qantas Airways Limited (ASX: QAN)

Morgan Stanley reiterated its overweight rating and retains its Qantas share price target of $4.90. It predicts that domestic capacity will improve to approximately 50% by Christmas but is highly dependent on state border re-openings. 

Resmed CDI (ASX: RMD) 

Morgan Stanley raised its Resmed share price target from $25.40 to $25.90. It believes that the company will continue to deliver strong growth despite the pandemic. 

More reading

• Leading brokers name 3 ASX shares to sell today
• Boral (ASX:BLD) share price surges after announcing a US$1bn transaction
• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX stocks are outperforming today after brokers upgraded them to “buy”
• Leading brokers name 3 ASX shares to buy today

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 Austal Limited. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bravura Solutions Ltd (ASX: BVS) share price has dropped today following the announcement of a new contract win.

During market open, the news sent the software solutions company shares to an intra-day high of $3.31. However, negative market sentiment has caused a retreat in the Bravura share price, which has now fallen 4.24% to $3.16 at the time of writing.

Contract win

According to the release, Bravura signed a long-term contract with Aware Super for a suite of software products. The agreement will allow Aware Super to use Bravura’s ecosystem to support the administration of retirement savings.

Aware Super is the second largest superannuation funds in Australia, managing close to $130 billion in retirement savings. The company has over 1 million members and supports them with superannuation, retirement, investments and advice.

What’s in the deal

Bravura will provide its Sonata Alta operating model that encompasses AdviceOS, Babel SuperStream messaging and member, and adviser digital products. The deal will assist in Aware Super’s running of superannuation, income stream, unit trust and advice offerings.

Sonata Alta is a new, digital platform that automates administration tasks through its cloud business-process-automation-as-a-service (BPaaS). The product gives complete visibility of super fund performance and insights to create a personalised experience for customers.

A dedicated support team will also be on standby for any service-related enquiries.

Both parties have signed the contract for an initial term of 7 years.

What did both companies say?

Bravura CEO, Mr Tony Klim commented on the new deal:

We are delighted to provide Bravura’s world-class technology to Aware Super. Sonata Alta and Bravura’s ecosystem of products are ideally suited to providing Aware Super unprecedented control, flexibility and a highly personalised member experience at scale to support their members for and in retirement.

Ms Deanne Stewart, Aware CEO, added:

After a rigorous selection process, Aware Super selected Bravura as its technology partner for this key initiative. We look forward to working closely with Bravura to deliver exceptional outcomes for our members.

Outlook

Bravura advised that due to the impact of COVID-19 on businesses, there has been greater uncertainty in the timing of deal closures.

Despite the new contract win with Aware Super, Bravura noted that its FY21 outlook remains unchanged. Because of the second wave lockdowns in the UK and stalling Brexit negotiations, its pipeline opportunities are being slowed.

The company expects its net profit after tax for FY21 to be significantly weighted to the second-half of the financial year.

About the Bravura share price

The Bravura share price has been trending lower since May, falling over 30% and its shares are currently trading back near their March lows.

The company has a market capitalisation of $781 million and a P/E ratio of 19.46.

More reading

• 5 top ASX shares to buy with $5,000
• Beat the rate cuts with these ASX dividend shares
• 10 must-buy ASX shares to snap up before it’s too late
• These ASX growth shares could be great options in October
• ASX 200 ends higher, Link (ASX:LNK) share price shoots 24% higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Australian electric scooter maker Vmoto Ltd (ASX: VMT) announced a market update on its activities for the third quarter ending 30 September.

The company reported record growth in sales of 7,009 units during the quarter, and record international sales year to date of 15,847 units.  This is 35% higher than the corresponding period in 2019, and 107% up on the same period in 2018.

The Vmoto share price is trading flat at 51.5 cents at the time of writing. 

Who does Vmoto do?

Vmoto is a Perth-based company that manufactures and distributes electric-powered two-wheel vehicles. Its factory is located in Nanjing, China.

The company has marketed itself as a premium maker of electric scooters with chic European design, coupled with German engineering. Vmoto is also involved in the manufacture of petrol-based scooters, however this represents a small part of its product line-up.

Highlights from today’s market update 

In 2020, Vmoto has undergone a strategic review on its operations to focus on the international sales of its high margin electric two-wheel product segment. Although 91% of sales are in China, the company wants to give more focus on the European market. 

The highlights of the announcement today include:

• International sales in 3Q20 beat its biggest competitor Niu Technologies (NASDAQ: NIU) – 7,009 units for Vmoto vs 5,596 units for Niu Technologies. This validates Vmoto’s competitiveness in international markets.
• A net cash position of AU$ 15.3 million. This is net of debt.
• There are significant inquiries from the business-to-business (B2B) segment especially from food delivery and ride-sharing companies. Advanced discussions are under way to secure those contracts.
• A European government’s initiative to subsidise the purchase of electric two-wheel vehicles will have longer term positive impact for the company.
• The company has secured international orders for 6,512 units to be delivered post 3Q20.
• The company has consistently delivered increasing sales every year since 2018.

The share price of Vmoto has increased by 117% this year at today’s trading. It has a market cap of AU$148.5 million at today’s value. 

The current state of electric motorcycles

The COVID-19 pandemic has accelerated the purchase of two-wheeled vehicles around the world – both by individuals as well as companies such as food delivery. In the city of London for example, new motorcycle registrations in 2020 were up by 31% compared to the same period last year. Food delivery company Deliveroo has seen its riders doubled in the UK within a year, with similar numbers across Europe. 

However, the electrical segment still only represents a small percentage of the motorcycle market.  In India, which is the world’s largest motorcycle market, it’s still less than 1%. 

The key to mass adoption of electric motorcycles will be the provision and ubiquity of Electric Vehicle (EV) charger stations in metropolitan areas. Some European governments  have begun discussions with private entities to install these EV stations around the major cities.

More reading

• ASX stock of the day: Strategic Elements (ASX:SOR) surges 170% on new self-charging battery
• Do Australian companies pay more tax than our neighbours?
• Here’s how Adore Beauty (ASX:ABY) and these new IPOs have fared since listing
• Will COVID-19’s second wave crash share markets a second time?
• Alcidion (ASX:ALC) share price storms higher on update

Motley Fool contributor dsunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Today, our ASX stock of the day is Strategic Elements Ltd (ASX: SOR). The Strategic Elements share price is certainly having a top day today. It has surged more than 170% from 6.5 cents a share yesterday to 18 cents a share at the time of writing (a new 52-week high). That means a $1,000 investment yesterday would now worth approximately $2,077 today. Not bad.

Today’s gains cap off what has been a volatile year in 2020 so far for this company. Strategic Elements shares have a 52-week range of 3 cents to today’s new high of 18 cents. But before today, the share price went nowhere over the past month, staying flat at 7 cents.

But why such a massive change in valuation over the space of one day? Well, the company did make an announcement to the markets this morning that seems to be why its shares are reaching for the stars today. But more on that later.

Who is Strategic Elements?

Strategic Elements is a very interesting kind of company, and one you might not have run into before. The company tells us that it “operates as a venture builder where it generates ventures and projects from combining teams of leading scientists or innovators in the technology or resources sectors.”

Importantly, the company describes itself as a “registered Pooled Developed Fund (PDF)”. According to Strategic Elements, a PDF means that “our investors pay no tax on capital gains or dividends to compensate for the higher risk of investing in small and medium-sized companies.”

The federal government’s business.gov.au website confirms this arrangement. It states that the PDF program aims to “increase the supply of capital to Australian small and medium-sized enterprises (SMEs).”

According to the government, under the arrangement:

PDFs and their shareholders receive tax benefits on the income derived from their equity investments. This is to help compensate for the higher risk of investing in SMEs. PDFs will be taxed at 15% on the income and gains derived from equity investments in Australian SMEs. Shareholders are exempt from tax on the income and gains derived from holding and disposing of PDF shares.

Strategic Elements aims to use this program to “take part in projects that explore brand new fields of innovation”. However, it also notes that, under the PDF arrangement, investments in retail or property investments are not permitted.

At the moment, some of Strategic Elements’ investments include an artificial intelligence and robotics company called Stealth Technologies, as well as a meteorite mining company (Australian Exploration Projects) and a company dedicated to making ‘memory ink’ (Nanocubes).

A new self-charging battery?

But Strategic Elements comes before us today for a different reason. It’s 100%-plus share price movement this morning can be put down to one announcement made before market open: a company in Strategic Elements’ portfolio is developing a self-charging battery technology. Strategic Elements’ subsidiary Australian Advanced Materials is collaborating with both the CSIRO and the University of New South Wales to develop the battery. According to the release:

The battery cells create electricity from humidity in the air or skin surface to self-charge themselves within minutes. No manual charging or wired power is required. They are created with a printable ink and are ideally suited for use in Internet of Things (IOT) devices.

The company notes that, if successful, the new battery technology would have a number of benefits over the existing lithium-ion rechargeable battery technology in widespread use today. These include non-flammability, weight reduction, no need for ‘plug-in charging’ and reduced environmental impact.

The batteries will be made using ‘battery ink’ from Strategic Elements’ Nanocubes, as well as graphene oxide, which is derived from graphite, a form of carbon.

Why are investors so excited about these batteries?

With the Strategic Elements share price rising by more than 170% just today, I think it’s fairly safe to say investors are excited about this technology’s prospects. But why? I think the answer lies with this technology’s potential applications. Strategic Elements is very keen to tout the application of these batteries to the Internet of Things.

Part of the company’s release states:

The global battery market for IOT is already significant with US$8.7 billion in 2019 and is projected to grow to US$15.9 billion by 2025. The growing need for thin and flexible batteries in IOT and medical devices, along with inherent advantages of micro batteries provides significant opportunities.

Rechargeable batteries are already being used for new applications. Most famously perhaps is by Tesla Inc (NASDAQ: TSLA). If Strategic Elements is really onto a winner here, it would have virtually limitless applications – including in electric vehicles. Further, companies working in this area, like Tesla and Nio Inc (NYSE: NIO), have recently seen significant investor interest and share price appreciation. I’m sure some of this goodwill and sentiment is flowing into Strategic Elements today.

This is an interesting one to watch going forward!

More reading

• Tesla knocks Q3 earnings out of the park
• Could Tesla deliveries surge 70% next year?
• Tesla Q3 trounces analyst estimates
• Tesla (NASDAQ:TSLA) earnings: What to watch
• 2 big challenges as Tesla (NASDAQ:TSLA) aims for a $25,000 car

Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Company tax is often a sensitive topic. 

Foreign multinationals are accused of not paying enough, local companies complain they pay too much, and businesses clever enough to domicile in low-tax regions are accused of tax-dodging.

Conversely, nations manipulate their corporate tax level according to their needs. Lower it to attract business activity, or raise it to fund social spending.

The stereotype is that wealthy European nations will have a higher tax rate to pay for their more generous social spending. And poorer countries have lower corporate taxes to entice business. 

Accounting software provider QuickBooks recently actually did the sums to work out whether any of this is true.

Australia has the 9th highest company tax

Australia’s 30% company tax rate saw it ranked as the equal 9th highest in the world. In the Asia-Pacific region, only Japan’s company tax rate was higher, at 30.62%.

Oddly enough, the highest taxing “country” on QuickBooks’ league table is not a country at all — it is the United States territory of Puerto Rico, which slugs businesses a whopping 37.5%.

The biggest trend was that the old stereotype of developed nations having higher corporate taxes and poorer countries having lower rates was shattered.

European countries on average had a tax rate of 20.27%, while Africa averaged 28.45%.

South America was the most frequently represented in the top 10, with Brazil and Venezuelan businesses paying 34% in tax.

“It is unclear whether South America, as an emerging continent, is charging higher taxes in order to raise government revenue or to benefit from businesses that are looking to expand internationally and enter new markets,” said QuickBooks analyst, Lucy Desai.

“South America is becoming a popular choice for businesses to enter, with strong trade links and an advantageous geographic location.”

Looking at the richest countries, there is no magic formula for company taxes – some charge high and some charge low.

“The top five richest countries in the world’s corporation tax are relatively varied, with Luxemburg standing at 27.08%, Norway at 22%, Iceland at 20%, Switzerland at 18% and Ireland at 12.5%,” said Desai. 

“It would appear that some countries’ cultures factor into how much tax they pay. For example, Scandinavian countries are proud to pay higher taxes to contribute to social welfare.”

Countries with the highest corporate taxes

Nation/region	Company tax rate (%)
Puerto Rico	37.5
Zambia	35
Brazil	34
Venezuela	34
France	33.3
Columbia	33
Morocco	31
Japan	30.62
Australia + 7 others	30
Source: QuickBooks, table created by author

Countries with the lowest corporate taxes

Nation/region	Company tax rate (%)
Barbados	5.5
Hungary	9
Qatar	10
Bulgaria	10
Cyprus	12.5
Ireland	12.5
Iraq	15
Kuwait	15
Maldives	15
Georgia	15
Lithuania	15
Source: QuickBooks, table created by author

 

More reading

• Here’s how Adore Beauty (ASX:ABY) and these new IPOs have fared since listing
• Will COVID-19’s second wave crash share markets a second time?
• Alcidion (ASX:ALC) share price storms higher on update
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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The month of October has certainly been a very busy one for IPOs.

A number of shares have completed their IPOs this month and hit the ASX boards. Some more successfully than others.

Here’s a summary of recent IPOs and how they have fared since listing:

Adore Beauty Group Limited (ASX: ABY)

The Adore Beauty share price has had a difficult start to life on the ASX boards. This afternoon the online beauty retailer’s shares are trading at $5.88. This represents a 13% decline from its IPO price of $6.75. 

Adore Beauty raised $269.5 million from its IPO, giving it a market capitalisation of $635.3 million. The company intends to use the proceeds of its IPO to support its growth strategy and future growth opportunities. This includes growing its brand awareness, strengthening its offering, and expanding into new markets and adjacent categories.

Aussie Broadband Limited (ASX:ABB)

The Aussie Broadband share price has been a very strong performer since completing its IPO. On Tuesday afternoon the internet provider’s shares are fetching $1.89. This is up a sizeable 89% from its IPO listing price of $1.00.

Aussie Broadband listed on the Australian share market after raising approximately $40 million through a partially underwritten initial public offering. The funds raised are going to be used predominantly on the deployment of a dark fibre network.

CleanSpace Holdings Limited (ASX: CSX)

The CleanSpace share price has also been a strong performer since listing on the Australian share market. The shares of the designer, manufacturer, and seller of workplace respiratory protection equipment (RPE) for healthcare and industrial end markets are trading at $6.88 this afternoon. This is up an impressive 56% from its listing price of $4.41.

CleanSpace’s IPO raised a total of $131.4 million. Though, only $20 million of this was primary capital. The remainder is for long term shareholders to realise some of their investments.

MyDeal.com.au Limited (ASX: MYD)

The MyDeal.com.au share price is trading at $1.32 this afternoon. While this is notably higher than its IPO price of $1.00, it is materially lower than its high. The online retail marketplace provider’s shares rocketed 120% higher on their first day on the ASX boards to $2.20.

MyDeal raised $40 million from its IPO, which comprises $35 million for the company and $5 million for certain existing shareholders. It intends to use the proceeds to drive future growth. This includes growing its private label business, investing in its proprietary technology, and investing in advertising to grow its customer base and brand.

Zebit Inc (ASX: ZBT)

The Zebit share price has had a disastrous start to life on the ASX boards. This afternoon the US-based e-commerce company’s shares are changing hands for 97.5 cents. This is down 38% from its IPO price of $1.58.

The California-based company raised A$35 million, which it plans to use to rapidly accelerate its growth in North America. Zebit markets itself as the Amazon for the under-served, with a built in buy now pay later platform that provides credit to those that cannot get it elsewhere.

More reading

• Zebit Inc (ASX:ZBT) share price crashes 21% lower following IPO
• The Adore Beauty (ASX:ABY) share price surged 10% higher today
• MyDeal (ASX:MYD) share price rockets 120% higher following IPO
• New $259 million ASX tech player listing Thursday
• ASX 200 Weekly Wrap: Promises of easy money push ASX 200 to post-crash high

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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