The Afterpay Ltd (ASX: APT) share price is pushing higher on Monday after announcing an exclusive new partnership with Qantas Airways Limited (ASX: QAN).

The buy now pay later provider’s shares were up 2% to $68.80 at one stage, but have since pulled back a touch.

The Afterpay share price is currently 0.7% higher at $67.95.

What did Afterpay and Qantas announce?

This morning Afterpay and Qantas announced the launch of a new partnership allowing Qantas Frequent Flyers to earn Qantas Points with the buy now pay later platform.

From later this week, Qantas Frequent Flyers will be able to earn up to 5,000 Qantas Points when they link their membership number to their Afterpay account.

Qantas Loyalty CEO, Olivia Wirth, notes that earning points with Afterpay will be advantageous for the large number of users classed as frequent buyers. These are users that maximise their points earn on everyday spending and not just flights.

She added: “Financial services is one of the most popular ways to earn points in the program, it’s the quickest and easiest way to build your points balance. With our 13 million members all having different spending habits and financial preferences, it’s great to be able to offer more options and more rewards.”

Afterpay’s CEO and Co-Founder, Anthony Eisen, was pleased to be partnering with one of Australia’s largest and most recognised loyalty programs. He feels it will provide significant upside for Afterpay customers.

Mr Eisen said: “We are always looking for ways to add value for our customers and this partnership between two iconic Australian brands is a great way to reward them for shopping with Afterpay. Now our customers can earn Qantas Points on their purchases at no additional cost, just by using Afterpay as they normally would.”

How do you earn points?

If you’re not an Afterpay customer already, you’ll earn 500 Qantas Points for joining and adding your Qantas Frequent Flyer membership number to your Afterpay account.

After which, you’ll earn 1 Qantas Point per $1 spent, up to a total of 5,000 Qantas Points.

If you’re already an Afterpay user, you’ll have to wait a little longer before you start accruing points. Once you’ve spent $1,000, you’ll earn 1 Qantas Point per $1 spent. This is also up to a total of 5,000 Qantas Points.

Though, it is worth noting that the offer to existing Afterpay customers is limited to the first 50,000 members who link their membership number to their Afterpay account.

Foolish Takeaway.

I think this is a positive move by Afterpay and could pull in more new customers of an attractive demographic.

Though, given the limitations on the points you can accrue, it won’t be sending you to Europe or even interstate on a Qantas plane any time soon.

More reading

• ASX 200 edges higher: Afterpay and Qantas join forces, big four banks push higher
• These were the 5 best performing ASX shares last week
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• The Webjet share price is dividing analysts even as it becomes a likely takeover target
• These were the best performing ASX 200 shares last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Adacel Technologies Limited (ASX: ADA) share price is up by more than 19% today after the company updated the market with its revised profit before tax guidance.

It is welcome news for the technology company, which has been hard hit this year, with shares falling from $0.61 in January to a low of $0.30 cents on 23 March. The Adacel Technologies share price sits at $0.52 at the time of writing.

What did Adacel Technologies announce?

This morning, Adacel Technologies advised the market it has updated its profit before tax guidance to $4.8 million following strong operational execution. This represents a 20% increase on the guidance that was released to the market in mid-April.

Despite the continuing impact of COVID-19, the company reported that it was able to expedite a number of key infrastructure installations for existing customers in Australia and the US. Furthermore, Adacel was able to complete 2 traffic management projects in Fiji and Portugal.

Adacel also updated its cash balance to approximately $5 million – an increase of around 150% on its forecasts in April. This increased cash balance was attributed to the early completion of the upgrades in the US and Australia, ongoing operating efficacies, and improved cash management.

In the announcement, CEO Daniel Verret expressed his pleasure at the “progress despite the challenges our teams faced with COVID-19.” He was also encouraged looking forward into FY2021, and anticipates “continued improvement in our financial performance,” assuming “modest and steady recovery from the COVID-19 disruption.”

What does Adacel Technologies do?

Adacel Technologies is a global software technology company headquartered in Melbourne and is involved with the design and application of air traffic management and simulation. According to the company, more than 21% of the world’s airspace is controlled using its air traffic management technology.

In late June, Adacel received a US$2.8 million order from the US Army for its air traffic control common simulator (ACS) program, demonstrating the ongoing partnership that started in 2013. These simulators will be installed in multiple military locations around the world.

Adacel supports customers worldwide from North and South America, to Europe, Asia Pacific, Africa, Australia and New Zealand. The company has been working with military, defence and security customers, airport authorities and universities for over 30 years.

About the Adacel Technologies share price

Adacel shares have returned more than 23% since this time last year, however are down by 14.75%, year to date. The Adacel Technologies share price is up by 19.54% in today’s trade to $0.52 at the time of writing.

More reading

• Afterpay share price pushes higher on Qantas partnership
• Cochlear and these ASX 200 shares could be fantastic buy and hold investments
• Why Adbri, Domino’s, Event, & Viva Energy shares are dropping lower
• 3 innovative ASX shares to buy
• The latest ASX 200 stocks crashing on broker downgrades

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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Among the 200 shares trading on the S&P/ASX 200 Index (ASX: XJO), I believe there are a number that standout as great buy and hold options.

Three top ASX 200 shares that tick a lot of boxes for me are listed below. Here’s why I would buy them:

Altium Limited (ASX: ALU)

The first ASX 200 share to consider buying is Altium. It is a provider of printed circuit board (PCB) design software and other related services. The Altium share price has been one of the best performers on the ASX over the last few years. And while its business performance this year will disappoint because of the pandemic, I believe it remains well-placed to resume its strong form once the crisis passes. This is due to its exposure to the Internet of Things market which continues to grow at a rapid rate. As the majority of connected devices require PCBs inside them to function, demand for Altium’s software looks set to continue to increase and drive strong profit growth.

Cochlear Limited (ASX: COH)

Cochlear is a manufacturer and distributor of cochlear implantable devices for the hearing impaired. I think it could be a great long-term investment option due to its leadership position in a structural growth market which has high barriers to entry and attractive demographics. Combined with its high level of investment in research and development, I feel Cochlear is positioned to continue growing its earnings at a solid rate over the next decade. I expect this to lead to the Cochlear share price outperforming the ASX 200 over the 2020s.

REA Group Limited (ASX: REA)

Another quality ASX 200 share to buy is this property listings company. I’m a big fan of REA Group because of the way it has continued to deliver profit growth during both the housing market downturn and the pandemic. I feel this bodes well for the company when trading conditions improve. Especially given the sizeable cost cutting it has undertaken during the crisis. Overall, I believe REA Group is in a position to grow its earnings at an above-average rate for a number of years from FY 2021 onwards. This could make REA Group shares a great buy and hold option.

More reading

• The latest ASX 200 stocks crashing on broker downgrades
• Analysis: Is the Polynovo share price good value?
• ASX 200 edges higher: Afterpay and Qantas join forces, big four banks push higher
• These were the 5 best performing ASX shares last week
• These were the 5 worst performing ASX shares last week

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 Altium and Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and REA Group 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.

The post Cochlear and these ASX 200 shares could be fantastic buy and hold investments appeared first on Motley Fool Australia.

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After a poor start to the day, the S&P/ASX 200 Index (ASX: XJO) is in positive territory in afternoon trade. At the time of writing the benchmark index is up 0.1% to 6,065.3 points. 

Four shares that are acting as a drag on proceedings are listed below. Here’s why they are tumbling lower today:

The Adbri Ltd (ASX: ABC) share price is down a further 7% to $2.18. Investors have been selling the building materials company’s shares after it announced last week that Alcoa of Australia will not be renewing its lime supply contract when it expires at the end of June 2021. A number of brokers have responded negatively to the news, such as UBS. This morning its analysts downgraded the building materials company’s shares to a sell rating (from buy) and slashed the price target on them to $2.00.

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is down 0.5% to $71.96. Investors have been selling the pizza chain operator’s shares on Monday after it was downgraded by a leading broker. Analysts at Ord Minnett have downgraded Domino’s to a hold rating with an improved price target of $70.00. It made the move on valuation grounds after strong gains in 2020.

The Event Hospitality and Entertainment Ltd (ASX: EVT) share price is down 3.5% to $8.57 following the release of a business update. Event revealed that it has taken on more debt to see it through the crisis. It has increased its debt facilities by $205 million to $750 million. This gives it ~$320 million of liquidity. In addition to this, it revealed that the majority of its cinemas are now open in the ANZ region.

The Viva Energy Group Ltd (ASX: VEA) share price is down almost 2% to $1.76 on the day of its annual general meeting. At the meeeting, Viva Energy noted that it experienced a sharp reduction in demand for its fuel from consumers and the aviation industry during the pandemic. However, it advised that retail sales have begun to recover as restrictions ease and domestic flights return.

More reading

• The latest ASX 200 stocks crashing on broker downgrades
• ASX 200 edges higher: Afterpay and Qantas join forces, big four banks push higher
• These were the 5 worst performing ASX shares last week
• Why Domino’s and these ASX 200 shares have just hit new highs
• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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.

The post Why Adbri, Domino’s, Event, & Viva Energy shares are dropping lower appeared first on Motley Fool Australia.

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Australia is an amazingly innovative country – from the medical application of penicillin, the invention of WiFi, right through to the cochlear implant or bionic ear. Heck, Australia was even the birthing ground for what would become Google Maps. It should come as no surprise then that there are a multitude of innovative ASX shares to buy.

If you’re looking for ASX shares to buy that capitalise on our Aussie innovation, here are 3 very inventive smaller companies that are all working on groundbreaking technologies.

Avita Therapeutics Inc (ASX: AVH)

Professor Fiona Wood is the director of the Royal Perth Hospital burns unit, the inventor of spray-on skin, and the founder of Avita Therapeutics. This company develops spray-on skin technologies. The company’s flagship product is RECELL. The primary use of the product is for burns, paediatric scalds and large surface area wounds, but the opportunities in genetic skin diseases, vitiligo and even aged skin rejuvenation are even more exciting.

The Food and Drug Administration (FDA) finally approved RECELL in September 2018. It recently redomiciled in the US where its major growth market lies. Its Q3 sales more than doubled compared the prior corresponding period. 

Although all technology companies are risky, I think this is a good ASX share to buy and likely to perform well from here. 

Electro Optic Systems Hldg Ltd (ASX: EOS)

Founded in 1983 from the privatisation of Commonwealth of Australia space activity, Electro Optic Systems develops advanced optical sensors. These have been applied to many high technology solutions, including the space situational awareness network in conjunction with the US. This monitors and tracks orbiting space-based objects such as satellites and debris using ground-based radar and optical stations. 

In the defence sector, it develops a range of remote weapons systems for use on tactical vehicles – products that are battle-proven technology, as well as world-leading counter-drone technology. On Friday, the company announced it was in negotiations with the Commonwealth Government over the purchase of 251 remote weapon stations and related material. This is part of the federal government’s $270 billion capability upgrade for the Australian Defence Force.

Electro Optic saw its share price rise by 11.53% last week and has shot up by a whopping 21.99% today.

Brainchip Holdings Ltd (ASX: BRN)

Former West Australian Peter Van der Made has been at the forefront of computer innovation for 40 years. IBM and First International Computer in Taiwan own his past technology companies. 

He is also the founder of Brainchip Holdings, a company working in artificial intelligence (AI) headquartered in the US. Brainchip is the only pure play AI company on any share market globally. The company is working on semiconductor technologies to advance the capability of artificial intelligence. Its existing products reduce the carbon footprint of data centres, as their ultra low power use requires less cooling.

The company has developed a software package called BrainChip Studio to commercialise its technology. Uses of the technology include facial recognition in anti-terrorism and airport security, as well as pattern recognition in casinos. The company’s share price finished the week up by 26.5% after announcing an important milestone in the progress of a first of a kind AI technology. 

The company continues to commercialise its technology. I think this company has the potential to be to AI what intel was to personal computing.

Foolish takeaway

From mundane products like the garage roller door and the humble notepad, through to the first in-vitro fertilisation birth and the world’s first vaccine to prevent cervical cancer, Australians are an inventive people. In my view, we are also getting a lot better at commercialising our discoveries.

BrainChip, Electro Optic and Avita are just some of the great innovative ASX shares to buy, but there are many others. These include exciting companies like Osteopore Ltd (ASX: OSX), Nanosonics Ltd. (ASX: NAN) and Polynovo Ltd (ASX: PNV).

More reading

• Analysis: Is the Polynovo share price good value?
• Why Electro Optic Systems, Mayne Pharma, Tyro, & WAM Leaders are racing higher
• EOS share price on watch following defence spending talks
• Electro Optic Systems share price on watch after winning major government defence contract
• Bring your portfolio to life with these stellar ASX healthcare shares

Daryl Mather owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited, Electro Optic Systems Holdings Limited, Nanosonics Limited, and POLYNOVO FPO. The Motley Fool Australia has recommended Avita Medical Limited, Electro Optic Systems Holdings Limited, and Nanosonics 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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The market stumbled out of the opening block this morning but there are two ASX stocks in particular that are crashing after being hit by broker downgrades.

The S&P/ASX 200 Index (Index:^AXJO) fell 0.3% in early trade as ongoing fears of a second COVID-19 wave of infections weigh on investor sentiment.

It will be hard to shake the sinking feeling in the near-term with coronavirus dominating headlines, but the two downgrade candidates will have other things to worry about as well.

Big cracks emerging

The first is the Adbri Ltd (ASX: ABC) share price, which crashed 7.2% to $2.18 at the time of writing after UBS downgraded the stock by two full notches to “sell” from “buy”.

This makes the stock the worst performer on the ASX 200 and significantly behind the Bega Cheese Ltd (ASX: BGA) share price, which is the second worst with its 3% plus fall.

The broker’s bearish change of heart comes on news that Adbri lost a major contract with Alcoa to supply lime.

Lime lost its flavour

“Key to our ABC Buy call was the expectation that the Lime division was a stable but high margin contributor to the business, which would insulate ABC from any weakness in its concrete/cement division,” said UBS.

“However, the loss of a major Lime contract has now shaken this view. Despite having a high margin, ABC’s inability to renegotiate the contract is concerning given the significance of it (40% of Lime production).”

The broker cut its price target on the stock to $2 from $2.82 a share.

Metal fatigue

Another major underperformer is the Sims Ltd (ASX: SGM) share price. Shares in the scrap metal group tumbled 2.9% to $7.39 this morning to become the third worst performing ASX 200 stock.

This time it’s Jarden that delivered the blow to the stock as it downgraded its recommendation to “neutral” from “outperform”.

The broker warns that Sims will miss consensus earnings forecasts by a mile as it cut its earnings expectations on the group.

Cum-profit downgrade?

“Our 2H20 forecasts are shaped by the evident weakness in scrap pricing, volumes, and soft US scrap peer trading results for the period through MayQ20,” said Jarden.

“We note that 1H21 trading has commenced from a position of scrap pricing and volumes weakness, and with heightened uncertainty, and risk of potential demand destruction, under COVID19.”

The broker is now forecasting Sims to post an earnings before interest and tax (EBIT) loss of $52 million for FY20, which is around 50% below the median consensus estimate.

Jarden dropped its 12-month price target on the stock to $7.95 from $9.10 a share.

More reading

• Why Adbri, Domino’s, Event, & Viva Energy shares are dropping lower
• Analysis: Is the Polynovo share price good value?
• ASX 200 edges higher: Afterpay and Qantas join forces, big four banks push higher
• These were the 5 best performing ASX shares last week
• These were the 5 worst performing ASX shares last week

Motley Fool contributor Brendon Lau 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 Polynovo Ltd (ASX: PNV) share price was a strong performer last week and closed the five days of trade 8.1% higher at $2.66 per share. At the time of writing on Monday, Polynovo shares had edged slightly lower to $2.64.

Shares in the Aussie biotech have consistently outperformed the S&P/ASX 200 Index (ASX: XJO) and continued to climb higher in 2020. So, how has this happened and is it sustainable?

What has happened in the last 12 months?

It’s been a big start to the year for Polynovo and its investors. Despite slumping in the recent bear market, the Polynovo share price has surged back to life.

Strong sales have been a key factor behind the biotech company’s share price growth. Polynovo’s CSIRO-developed NovoSorb BTM product continues to kick goals in Australia and abroad.

In April, Polynovo announced the first use of its NovoSorb BTM product in Canada through Health Canada’s Special Access Program (SAP). The company is working towards regulatory approval in 2021 which could open up another huge addressable market.

The successful news follows record monthly sales in the United States and an upward trajectory which has propelled the Polynovo share price higher.

What about the company’s financials?

Interestingly enough, the company’s half-year results in February didn’t go down well with investors. In fact, the Polynovo share price fell 20% on the back of the 26 February results release.

The company reported an 80% increase in yearly revenue to $10.2 million with a 129% increase in NovoSorb BTM sales to $8.6 million. In some good news for growth investors, NovoSorb BTM sales more than tripled in January 2020 compared to January 2019 figures.

However, Polynovo reported a net loss after tax of $2.4 million in February. In my opinion, that in itself isn’t a worry, particularly for an R&D heavy growth company like Polynovo.

What is the outlook for the Polynovo share price?

Clearly, the coronavirus pandemic has thrown a spanner in the works for predicting what will happen in FY21.

Polynovo management did say that NovoSorb BTM sales for FY20 should comfortably double FY19, but that was all pre-pandemic.

The company continues to invest heavily in R&D and sales are trending upward. I think there’s really strong growth potential for the Polynovo share price in 2020 and beyond.

If the company can execute its plans in the lucrative hernia and breast augmentation and reconstruction industries, who knows just how high the Polynovo share price could climb.

Foolish takeaway

The Polynovo share price has been a consistent performer over the last 5 years. Of course, past performance isn’t a reliable indicator of future performance.

However, it seems to me the company has a strong sales pipeline and clear room for growth in 2020. While Polynovo is a speculative buy and heavily dependent on future sales growth, the technical environment does look strong.

More reading

• 3 innovative ASX shares to buy
• The latest ASX 200 stocks crashing on broker downgrades
• ASX 200 edges higher: Afterpay and Qantas join forces, big four banks push higher
• These were the 5 best performing ASX shares last week
• These were the 5 worst performing ASX shares last week

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. 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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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) has fought back from a morning decline and is trading a fraction higher at 6,059.6 points.

Here’s what is happening on the market today:

Afterpay and Qantas join forces.

The Afterpay Ltd (ASX: APT) share price is pushing higher today after announcing a partnership with Qantas Airways Limited (ASX: QAN). According to the release, Qantas Frequent Flyers will soon be able to earn Qantas Points with the buy now pay later platform. The partnership will launch later this week and allow frequent flyers to earn up to 5,000 Qantas Points when they link their membership number to their Afterpay account.

Big four banks push higher.

The big four banks have started the week in a positive fashion. All four banks are pushing higher at lunch and are fighting hard to drive the ASX 200 into the black. The best performer in the group at the time of writing is the Commonwealth Bank of Australia (ASX: CBA) share price with a 0.6% gain.

Adelaide Brighton continues to sink lower.

After a 25% decline on Friday, the Adbri Ltd (ASX: ABC) share price has continued its slide on Monday. A number of brokers have responded negatively to news that Alcoa of Australia will not be renewing its lime supply contract when it expires at the end of June 2021. One bearish broker is UBS. Analysts at the investment bank have downgraded the building materials company’s shares to a sell rating (from buy) and slashed the price target on them to $2.00.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Monday has been the Mesoblast limited (ASX: MSB) share price with a gain of 9%. Investors have responded positively to news that its remestemcel-L product has been given an expanded access protocol for compassionate use in the treatment of COVID-19 infected children with cardiovascular and other complications of multisystem inflammatory syndrome. The worst performer on the index has been the Adbri share price with a decline of almost 7%.

More reading

• Why Adbri, Domino’s, Event, & Viva Energy shares are dropping lower
• The latest ASX 200 stocks crashing on broker downgrades
• Analysis: Is the Polynovo share price good value?
• These were the 5 best performing ASX shares last week
• These were the 5 worst performing ASX shares last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 share market lifted higher last week with the start of the new financial year, hitting a 3-week high. The technology sector drove gains, with Afterpay Ltd (ASX: APT) hitting new heights. The S&P/All Technology Index (ASX: XTX) gained 7.7% over the week, following the NASDAQ which gained close to 5%. The All Technology Index is now up more than 90% from its March low, while the ASX 200 is up a comparably meagre 33%.

Better than expected economic data is driving continued gains. The American labour market added 4.8 million new jobs in June, lowering the unemployment rate from May’s 13.3% to 11.1%. This has renewed market optimism that the worst of the coronavirus crisis is behind us.

Here we take a look at last week’s best performing ASX shares.

Afterpay Ltd (ASX: APT)

The Afterpay share price rose 18.4% last week to reach $67.50 a share. Afterpay has been one of the best performing ASX shares since the March correction, gaining 658% from its $8.90 low. Demand for Afterpay’s buy now, pay later service has continued to grow throughout the pandemic, with the company reaching 1 million UK customers in June and 5 million US customers in May. The UK and US are key growth markets for Afterpay, which already boasts 3.2 million active customers in Australia and New Zealand.

Australian investors are not the only ones favouring Afterpay – in May, Chinese tech conglomerate Tencent Holdings Limited became a substantial holder. In the market announcement detailing the news, Anthony Eisen and Nick Molnar, co-founders of Afterpay, stated: “Tencent’s investment provides us with the opportunity to learn from one of the world’s most successful digital platform businesses.”

The investment provides a valuable opportunity for Afterpay to collaborate with Tencent in areas such as technology and future payment options on Afterpay’s platform. 

Nearmap Ltd (ASX: NEA)

The Nearmap share price gained 17.5% last week to close the week at $2.49. Nearmap captures and manages aerial images of urban and regional areas in New Zealand, Australia, and the US. These images are then sold as a subscription service to businesses and governments. Images can be used by local governments to monitor tree coverage, by infrastructure companies to plan projects, and by insurance companies to assess claims.

Nearmap did not see a material impact on trading conditions as a result of the coronavirus crisis. Nonetheless, steps were taken to preserve cash and maximise future flexibility without the need for additional capital. Measures were implemented to save approximately 30% of operating and capital costs, with the intention for the company to be cash flow break even by the end of FY20.

In May Nearmap reported annualised contract value of over $102 million, with full year guidance of $103–$107 million. Sales activity levels have remained strong in the period following the onset of coronavirus and the company has continued to grow its portfolio month-on-month across key industry segments.

NextDC Ltd (ASX: NXT)

The NextDC share price climbed 14.6% last week to finish the week at $11.10. The data centre operator joined the S&P/ASX 100 Index (ASX: XTO) in the latest quarterly rebalance with its market capitalisation now above $5 billion. The share price was boosted on Wednesday when NextDC announced an increase in contracted commitments at its NSW data centre facilities. Contracted commitments increased by around 4MW to more than 36MW. In the announcement, CEO and Managing Director Craig Scroggie commented that “the demand for our data centre services continues to accelerate and exceed our expectations.”

In May, NextDC announced contracted commitments at its Victorian data centre facilities had increased by approximately 6MW to more than 27MW. NextDC undertook a $672 million capital raising in April, with funding used to ensure momentum in the company’s growth agenda. A new data centre is to be built in Sydney, with additional initiatives including adding capacity at existing data centres and new data centre site acquisitions.

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price rose 14.3% last week to close the week at $3.60, although there was no news out of the online real estate listings business. The company saw modest gains in revenue in the March quarter, with digital revenue up 3% and total revenue increasing 1%. In April, new residential listing volumes declined in the high 20% range as a result of COVID-19. Domain took action by agreeing covenant waivers with its banks and entering a new $80 million debt facility. The facility served to strengthen Domain’s liquidity position while a voluntary program aiming to reduce staff costs by 20% was implemented.

Staff were given the option to receive a proportion of their salary over the 6 months from April in share rights or to reduce working hours. The plan was supported by employees with the majority opting to take a percentage of salary in rights. The housing market has felt the impact of coronavirus, with prices softening in June, however signs of recovery were also present with listings increasing. Investors may be gambling on Domain for a swift recovery in the housing market.

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price climbed 13.1% last week to finish the week at $9.38. The price increase coincided with the release of its annual results, which showed strong earnings growth despite the impacts of COVID-19. Revenue increased 8.9% to $981.7 million and profits by 5.1% to $47.3 million. In Australia, same store sales growth was 3.5% over the full year and 2.3% in the second half despite the impacts of COVID-19.

Across Collins Foods’ Australian network, 137 restaurants now offer delivery, a channel that continues to generate strong growth. Click and Collect and website traffic continue to increase. Combined with delivery and drive thru, this provides a contactless way for customers to access KFC during the pandemic. Nine new stores were opened during the year, with an additional 16 major remodels completed.

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Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Collins Foods Limited and Nearmap 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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