Shares in gaming company Esports Mogul Ltd (ASX: ESH) are dropping today as the company announced its quarterly report.

The Esports Mogul share price has fallen 7.69% on the back of the news. In morning trade, its price dropped as low as 2.2 cents although it currently sits at 2.4 cents.

What did the report reveal?

The quarterly report has been highly anticipated, with the Esports Mogul share price jumping up as high as 3 cents within just the last 5 days. However, with a higher share price comes higher expectations.

During the quarter, the e-sport gaming company announced an oversubscribed placement which successfully raised $8 million. The placement will focus on funding the company’s expansion into mobile gaming. Strategically, with no native mobile tournament solution currently in the market globally, Esports Mogul believes it possesses a first mover advantage.

Furthermore, the company also announced a deal to partner with NASDAQ-listed Super League Gaming. The partnership gives Esports Mogul the opportunity to incorporate Super League Gaming’s AI technology into its platform.

Despite the positive announcements, the company’s cash flow report failed to impress, raking in just $66,000 from customers. In total, the company lost $523,000 in the quarter. As a result, Esports Mogul has $1.68 million in the bank, but this does not take into account its recent placement.

New appointments

Esports Mogul announced two newcomers to the leadership team, with Kate Vale and Michael Rubinelli joining the company.

Mr Rubinelli, a former Electronic Arts and Walt Disney Co executive, has been appointed CEO. He brings significant experience in executive leadership, product development and revenue growth. Ms Vale, who has experience with Alphabet Inc and Spotify Technology, joins the Esports Mogul board. 

What now for the Esports Mogul share price?

Despite recent share price gains, the company’s market cap remains around the $60 million mark. 

The company finished developing its tournament-as-a-service offering for global brands, advertisers and agencies during the quarter, which may bode well for the Esports Mogul share price moving forward.

The Esports Mogul share price is currently trading 7.69% lower.

More reading

• Why the Emerge Gaming Ltd (ASX:EM1) share price jumped 12% today
• The Esports Mogul (ASX:ESH) share price has surged up 57%. Here’s why

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Daniel Ewing owns shares of Alphabet (A shares) and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares) and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Electronic Arts and recommends the following options: long January 2021 $60 calls on Walt Disney. The Motley Fool Australia has recommended Alphabet (A shares) and Walt Disney. 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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Archtis Ltd (ASX: AR9) shares are up 8.33% on Thursday afternoon following the company’s acquisition of global information protection business, Nucleus Cyber. At the time of writing, the Archtis share price is trading at 39 cents after closing yesterday’s session at 36 cents.

What’s moving the Archtis share price?

In contrast to a wider market selloff, investors are today driving up the Archtis share price after the company announced news of its latest acquisition.

Archtis is a Canberra-based firm that specialises in the design and development of products, solutions and services for secure information sharing and collaboration. The company has a broad range of products and service offerings such as:

• Kojensi, a highly secure and trusted platform for sharing sensitive and classified files and document collaboration.
• Axiomatics, a dynamic and externalised authorisation solution. 
• Appsian, a security platform with dynamic control access. 
• Consulting and solutions services for secure information sharing and inter-organisation collaboration. 

Nucleus Cyber provides advanced information protection solutions that prevent data loss and protect against insider threats across the Microsoft Corporation (NASDAQ: MSFT) software suite. Microsoft is the world’s largest supplier of digital collaboration products to government, enterprise and SMEs. Microsoft boasts 115 million daily users of its Teams platform, and the Nucleus Cyber technology solutions operate seamlessly in conjunction with these products. For example, its protection solution provides a simpler, faster and cheaper solution to tailor information protection for file sharing, messaging and chat across collaboration tools. 

Nucleus Cyber’s customers include companies such as Virgin Australia Holdings Ltd (ASX: VAH), the Australian Government Department of Defence and Department of Health, Melbourne Polytechnic and Paramount Pictures. 

Acquisition details 

Archtis will acquire 100% of Nucleus Cyber for a total potential consideration of up to $9.75 million in Archtis shares. The company believes that this acquisition is highly strategic and transformational for its growth trajectory and global presence. Archtis will gain immediate presence in the key North American market, as well as access to the Microsoft business product suite. 

Opportunities for the combined business

The acquisition presentation highlights the company’s initial focus on foundational benefits such as simplifying its combined licensing and revenue model, solidifying its products, stabilising the combined customer base, introducing the Microsoft relationship to Archtis, and developing initial awareness. 

This will position the company in 2021 and beyond to focus more on expansion including a direct regional expansion across the European Union, Middle East and Asia Pacific regions. It will also enable Archtis to expand its product alliance with Microsoft Teams and security platforms as well as delivering lead generation and opportunities within US federal and central governments. 

The Archtis share price has increased 200% in year-to-date trading.

More reading

• Why the Esports Mogul (ASX:ESH) share price is down today
• Are these small cap ASX shares the next Kogan (ASX:KGN) and Nearmap (ASX:NEA)?
• ASX stock of the day: Total Brain (ASX:TTB) shares surge on massive revenue growth
• The Credit Clear (ASX:CCR) share price has rocketed 133% since its IPO this week
• Why the Bellevue (ASX:BGL) share price is dropping lower

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. 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 and recommends Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. 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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If you’re looking for small cap ASX shares to add to your watchlist, then I think the two listed below could be worth considering.

While they still have a lot of work ahead of them, I believe both have the potential to grow into much large entities in the future if all goes to plan.

Here’s why I’m watching them closely:

Aerometrex Ltd (ASX: AMX)

Aerometrex is a growing aerial mapping business specialising in aerial photography, photogrammetry, LiDAR, 3D modelling, and aerial imagery subscription services. The latter is through its MetroMap offering, which provides access to high quality 2D imagery and 3D reality mesh models. The company has been busy developing new products to strengthen its offering and recently announced a new bush fire prevention product.

This new technology is able to determine, in three dimensions, the exact fuel load densities in any bushfire prone region in Australia. Management believes the breakthrough could allow users to adopt a far more science-based and pre-emptive fuel load strike position ahead of this year’s bushfire season. All in all, Aerometrex is starting to look like the next Nearmap Ltd (ASX: NEA).

MyDeal.com.au Limited (ASX: MYD)

MyDeal.com.au is a recently listed online retail marketplace provider with a focus on furniture, homewares, appliances, technology, baby products, and hardware. It has been a strong performer in FY 2021, delivering first quarter gross sales growth of 317% to $56.67 million. This was underpinned by the shift to online shopping and a 268% increase in active customers to 669,897.

The company raised $40 million from its IPO and 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. If it can continue its strong form and invests its funds wisely, we could be looking at the next Kogan.com Ltd (ASX: KGN).

More reading

• Why Redbubble, Kogan, Marley Spoon and 1 other ASX share are surging
• Temple & Webster (ASX:TPW) share price barnstorms back with 11% rise
• Here’s how Adore Beauty (ASX:ABY) and these new IPOs have fared since listing
• 3 explosive ASX growth shares to buy with $3,000
• How did ASX retail shares perform in the latest quarter?

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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Kogan.com 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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Our ASX stock of the day today is Total Brain Ltd (ASX: TBB). Total Brain shares are going ballistic today, up 10.14% at the time of writing to 38 cents a share. The company’s share price closed at 34 cents a share yesterday, opened at 40 cents this morning, rose as high as 42 cents a share in early morning trading, before settling at the current level.

There’s no doubt 2020 has been a wild ride for the company. Total Brain shares were as high as 83 cents in January and as high as 62 cents a share in May, meaning shareholders are still down significantly from those highs, despite the massive share price appreciation we’ve seen today so far.

So what is this futuristic-sounding company and why are its shares going wild today?

Who is Total Brain?

Total Brain describes itself as a “mental health and brain performance self-monitoring and self-care platform”. It was founded in 2002 in San Francisco, California by neuroscientist Dr Evian Gordon. The company states that “our mission is to improve mental health and brain performance through brain-based self-awareness and training.”

The pillar of Total Brain’s business is a self-titled app (the Total Brain app). The app is available for smartphones and tablets as well as a desktop version. This app features a mental health screener, mental relaxation exercises and a ‘brain capacity test’, which measures your cognitive abilities across 12 ‘core brain capacities’, which include memory, resilience, connectivity and anxiety control.

Users can use the app for free, but free usage is restricted to your ‘brain score’ as well as a few sample training apps.

However, users can also opt for Total Brain’s paid membership, which is available on a subscription basis, costing $9.99 at the time of writing. A paid membership entitles the user to their full “scientifically validated brain health report” as well as a tailored training program and Total Brain’s full suite of training apps.

The company also offers packages tailored to companies and organisations. The company or organisation can pay for its staff to access the platform and receive the assessments and benefits of the app previously discussed. Total Brain lists Boeing Co (NYSE: BA) and Stanford University as among its clients.

Why are Total Brain shares rocketing today?

Total Brain’s share price was skyrocketing at market open this morning. However, the company only released a quarterly update at midday today. Putting that discrepancy aside, let’s assume that today’s strength is a result of this report.

Total Brain told investors that the company collected $800,000 in cash receipts for the quarter ending 30 September 2020. This was a 54% decrease, quarter on quarter. However, the company notes that in the previous quarter, a large upfront payment from a single contract was recorded. So if we adjust this number for that contract, revenue was actually up 20% on the prior quarter.

The company also notes that user registrations increased by 3% quarter on quarter, and 37% on a year-on-year basis. Brain profiles also increased by 4% and 37%, respectively.

Total Brain also told investors that user registrations have been growing at a 28% compounded annual growth rate (CAGR) between FY2017 and this quarter. Brain profiles had a CAGR of 35% over the same period.

In the company’s annual report for FY2020 (released back in August), Total Brain reported annual revenue growth of 48.4%, with expenses only growing by 3% (highlighting the benefits of a software-as-a-service business model).

It’s this continuation of Total Brain’s impressive revenue growth, further confirmed in the quarterly report, that I estimate is pushing up Total Brain shares today.

More reading

• Are these small cap ASX shares the next Kogan (ASX:KGN) and Nearmap (ASX:NEA)?
• The Credit Clear (ASX:CCR) share price has rocketed 133% since its IPO this week
• Why the Bellevue (ASX:BGL) share price is dropping lower
• Why market crashes are useful for buying ASX dividend shares
• The JB Hi-Fi Limited (ASX: JBH) share price has fallen 5% today

Motley Fool contributor Sebastian Bowen owns shares of Boeing. 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 Credit Clear Pty Ltd (ASX: CCR) share price has been a very strong performer since listing on the ASX boards earlier this week.

The Australian receivables management solution provider’s shares landed on the ASX on Tuesday after raising $15 million at a price of 35 cents per share.

Since then, the Credit Clear share price has gained a remarkable 133% and is now changing hands for 81.5 cents.

What is Credit Clear?

Credit Clear is a receivables management solution provider which has developed a proprietary digital billing and communication technology platform.

This platform allows organisations to manage communications and payment arrangements with their customers through an interactive digital and mobile interface as part of a full-service receivables suite of services.

Management notes that this achieves better customer engagement and insight, faster payment reconciliations, improved cash flows, and lower collection costs when compared to traditional methods.

At present, Credit Clear manages over 250,000 active customer accounts across a range of industries. This includes transport, financial services, government, utilities, and other sectors.

It also operates in a highly fragmented industry, with nearly 600 collection and receivables management businesses operating nationally. Management feels this makes the industry ripe for disruption by new technology-powered services.

In FY 2020, Credit Clear reported pro forma revenue of $11.2 million, gross profit of $9.6 million, and a loss before tax of $1.8 million.

Who is management?

The company is led by Chairman Gerd Schenkel and CEO Brenton Glaister.

Mr Schenkel is a former executive of National Australia Bank Ltd (ASX: NAB), Telstra Corporation Ltd (ASX: TLS), and Tyro Payments Ltd (ASX: TYR). Whereas Mr Glaister is a 35-year industry veteran and the founder of Credit Solutions. This is a business acquired by Credit Clear in November 2019.

Mr Schenkel commented: “Given the economic impact of COVID-19 on the economy, we feel the timing is right to grow the business by expanding our receivables technology platform. This will help our clients improve cash flow cost effectively, which is critical right now.”

“Prior to the listing on the ASX, Credit Clear was funded by some of Australia’s most successful technology investors, including Thorney, Ellerston Capital, Little Group and Regal, with these shareholders participating also in the IPO. We thank all of our existing shareholders and are pleased to welcome new shareholders on the Credit Clear journey,” he added.

Trading update.

Immediately after listing, the company released a trading update which revealed that its business has continued to grow rapidly.

According to the release, its messaging volume has increased over three-fold in the past twelve months to reach over 2.6 million messages in the September quarter.

This led to revenue for the September quarter increasing 22% compared to the previous quarter.

More reading

• Hayne Commission continues to haunt the Big Four banks
• Beat low interest rates with these 2 ASX dividend shares
• How ASX shares like Afterpay (ASX:APT) push for explosive growth
• Tyro Payments (ASX:TYR) share price tumbles lower following AGM update
• Leading brokers name 3 ASX shares to sell today

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 Tyro Payments. The Motley Fool Australia owns shares of and has recommended Telstra 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 Bellevue Gold Ltd (ASX: BGL) share price is trading lower after the company announced both its quarterly cash flow report and activities report. Shares in the miner have been soaring this year thanks to elevated gold prices. At the time of writing today, though, the Bellevue share price is trading 3.36% lower at $1.15. However, it is likely that the sharp drop in the All Ordinaries Index (ASX: XAO) is contributing to its decline.

Quarterly report

The Bellevue share price is falling today as the company announced its quarterly report. Despite announcing strong exploration and project development reports, shareholders were left wanting by poor financials.

Bellevue Managing Director, Steve Parsons, said

It was a pivotal quarter for Bellevue as we continued to demonstrate the huge exploration upside, both near the mine and regionally, while at the same time progressing our development pathway at the Bellevue Gold Mine. I have no doubt that our Resources will continue to grow as we develop the project and prepare for production.

In terms of the company’s financials, Bellevue maintained a strong cash position of $149.4 million at the end of September. This follows on from its fully underwritten placement that raised a total of $135 million. For the quarter, the company reported a net loss of $677,000, largely due to exploration costs.

This trend appears likely to continue as the company is set to invest $35 million in exploration and resource definition. The investment, over the next 15 months, will continue Bellevue’s aggressive exploration strategy in parallel with its project development.

About the Bellevue share price

Bellevue is an ASX listed company which boasts one of the highest-grade, under-developed gold discoveries in the world at the historic Bellevue Gold Mine in Western Australia.

As mentioned, the Bellevue share price has soared this year, gaining more than 110% as the company looks to reopen the historic mine. The Bellevue share price reached a 52-week high of $1.32 earlier this month. 

More reading

• Bellevue (ASX:BGL) share price surges 5% on positive mining results

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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I believe that market crashes can be very useful times to buy ASX dividend shares.

What’s going on with share markets?

At the moment the S&P/ASX 200 Index (ASX: XJO) is down more than 1% and the NASDAQ Composite fell by 3.7% overnight.

There is a resurgence of COVID-19 cases across both the USA and Europe. France has just gone into a second national lockdown until at least the end of November where French people can only leave their home for very limited reasons.

Investors are obviously concerned that businesses are going to suffer a second period of disruption to profits (which is what share prices are largely based on).

There aren’t many ASX shares that are currently in the green, but there are plenty in the red such as gold miners like Westgold Resources Ltd (ASX: WGX), Ramelius Resources Limited (ASX: RMS) and Saracen Mineral Holdings Limited (ASX: SAR).

Why market crashes are a good time to buy ASX dividend shares

I think that market declines are really good opportunities to buy ASX dividend shares.

When a quality share like Xero Limited (ASX: XRO) falls, we get the opportunity to buy shares at a cheaper price. You (hopefully) benefit as the share price recovers.

But not only does the share price of an ASX dividend share fall when markets decline, but the prospective dividend yield increases as share prices decline.

For example, if business offers a dividend yield of 5% and then the share price drops 10% it will mean the trailing dividend yield will be 5.5%.

But a key question is whether the dividend (and the profit) of the business is going to be affected.

Think about an ASX dividend share like APA Group (ASX: APA). Its profit isn’t going to be significantly affected by many issues, including COVID-19 in the US and Europe.

Meanwhile, a business like private hospital operator like Ramsay Health Care Limited (ASX: RHC) could be materially impacted again. Private operations, which is where Ramsay makes a lot of its profit, were already disrupted in Europe earlier in the year. Europe’s second wave could see more disruption for Ramsay.

So, I don’t think that every business is a buy just because it’s gone down in price. Sometimes a business can decline and be expensive, whereas something could rise and be cheap.

Some ASX dividend shares worth considering

I think the ones worth thinking about are ASX dividend shares that are likely to maintain or grow the dividend even in difficult market conditions.

Some of the shares that increased their dividend earlier in the year are some of my top candidates. For example:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) offers a grossed-up dividend yield of 3.5%.

Brickworks Limited (ASX: BKW) has a grossed-up dividend yield of 4.8%.

Rural Funds Group (ASX: RFF) has a projected FY21 distribution yield of 4.6%.

APA Group has a distribution yield of 4.7%.

WAM Leaders Ltd (ASX: WLE) has a forward grossed-up dividend yield of 8.2%.

Future Generation Investment Company Ltd (ASX: FGX) has a grossed-up dividend yield of 6.5%.

Foolish takeaway

I think each of the above ASX dividend shares offer strong income reliability over the next 12 months, even if there’s a lot of volatility over the rest of the year.

There are plenty of businesses that I think look better value today compared to yesterday or a couple of weeks ago. At today’s share prices I think I’m most attracted to Brickworks. It has a solid starting dividend yield and it’s exposed to the recovery of the Australian construction industry whilst the dividend is backed by its defensive assets.

More reading

• The Seek Ltd (ASX:SEK) share price under attack by offshore shorter
• ASX 200 down 1.1%: ANZ cash earnings down 42%, SEEK slammed, HUB24 jumps
• 5 things to watch on the ASX 200 on Thursday
• Today was mixed for the ASX 200, ending 0.1% higher
• These could be the next ASX stocks to unlock value by selling assets

Tristan Harrison owns shares of FUTURE GEN FPO, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended Ramsay Health Care 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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Shares in discount consumer electronics retailer JB Hi-Fi Limited (ASX: JBH) have dropped more than 5% today after the company concluded its annual general meeting (AGM) this morning.

The JB Hi-Fi share price is down 5.29% to $47.83 at the time of writing amidst a broader equity markets selloff across the world.

Major highlights from today’s AGM

• Total sales of $7.9 billion, up 11.6% on the prior year for the group. This includes sales from its Good Guys brand and e-commerce platform.

• Earnings Before Interest and Taxes (EBIT) was up 30.5% to $486.5 million.

• Net Profit After Taxes (NPAT) was up 33.2% to $332.7 million.

• Total dividends for FY20 were up 33.1% to 189 cents per share.

• In FY20 the company launched a new e-commerce platform for JB HI-FI in Australia and 3 new home delivery centres. Online sales grew 155%  and represents 7.6% of the company’s total sales.

• The FY21 trading update also shows some strong numbers in Australia where total sales grew by 30%. This represents the July 2020 – September 2020 trading period.

JB Hi-Fi’s business model

JB Hi-Fi is one of Australia’s largest discount retailers in home entertainment. Its brand also includes The Good Guys franchise, which it purchased in 2016. Its main competitor, Dick Smith Electronics, folded in 2016.

JB Hi-Fi’s competitive advantage is in its low-cost business model, where stores typically break even within one year. The company doesn’t have warehouses, and stocks its inventory on site in each outlet, minimising costs. Its business model thus relies on high volume and turnover.  

JB Hi-Fi has cemented itself as the category killer in electronics, similar to Bunnings in hardware, which is owned by Wesfarmers Ltd (ASX: WES). It has a network of 320 stores across Australia and New Zealand, and an online platform.

Opportunities and challenges ahead

Consumer electronics, including mobile phones, are more becoming commoditised products. JB Hi-Fi’s management has in the past lamented about the need to offer incentives continuously to attract mobile-phone customers, for example.

Management has also said that consumer electronic margins will be affected by price reductions resulting from high competition, especially with the arrival of Amazon.com Inc (NASDAQ: AMZN) in Australia in 2017. 

However, JB Hi-Fi’s well-known brand image in the eyes of the Australian consumer has attracted loyal customers and should be able to stave off competition in the short to medium term.

About the JB Hi-Fi share price this year

JB Hi-Fi’s share price has been a runaway tear this year. It began the year with the share price at $38 before dipping to $23.16 in March. It has since recovered to today’s level at $47.83 which represents a gain of 26% YTD.

This compares with a flat YTD return on S&P/ASX 200 Consumer Discretionary Sector (ASX: XDJ)index.

More reading

• Why ANZ Bank, JB Hi-Fi, Northern Star, & SEEK shares are dropping lower
• How did ASX retail shares perform in the latest quarter?
• Is Temple & Webster Group Ltd (ASX:TPW) still a buy?
• 5 major ASX 200 events this week
• The best time to invest may feel uncomfortable

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Amazon. 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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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing the benchmark index is down a sizeable 1.3% to 5,978.7 points.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ Bank share price is down 2.5% to $18.72 following the release of its full year results. For the 12 months ended 30 September, the bank reported a 42% decline in cash earnings from continuing operations to $3.76 billion. A final fully franked 35 cents per share dividend was also declared. Both metrics fell a touch short of the market’s expectations.

JB Hi-Fi Limited (ASX: JBH)

The JB Hi-Fi share price is down 5.5% to $47.79. This follows the release of the retail giant’s first quarter update this morning. Although JB Hi-Fi delivered very strong sales growth during the quarter, its result implies a major slowdown in its growth during August and September.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down over 5% to $14.93. Investors have been selling Northern Star’s shares on Thursday after the price of the precious metal dropped lower despite the market selloff. It isn’t just Northern Star that is under pressure. The S&P/ASX All Ordinaries Gold index is down over 4% this afternoon.

SEEK Limited (ASX: SEK)

The SEEK share price has fallen 6% to $21.51 after being the latest ASX share to be targeted by offshore short sellers. Analysts at Blue Orca claim that SEEK’s China-based Zhaopin business is full of fake listings and is paying students to make fake resumes. It feels this raises questions over the validity of Zhaopin’s reported revenues. The short seller values the job listings company’s shares at a lowly $7.20.

More reading

• The Seek Ltd (ASX:SEK) share price under attack by offshore shorter
• ASX 200 down 1.1%: ANZ cash earnings down 42%, SEEK slammed, HUB24 jumps
• ANZ (ASX:ANZ) share price on watch after FY 2020 results release
• 5 things to watch on the ASX 200 on Thursday
• Hayne Commission continues to haunt the Big Four banks

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended SEEK 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 Helloworld Travel Ltd (ASX: HLO) share price is wobbly today following the release of a trading update.

The Helloworld share price stumbled on opening this morning, dropping down to $1.69. However, shares in the travel company rallied back up to $1.75 in midday trade, down 2.78% at the time of writing.

Let’s look at how Helloworld performed in the September quarter.

Business update

Helloworld reported a poor result for the period ending 30 September, as COVID-19 continued to severely impact the travel industry.

Total transaction value (TTV) plummeted to $176.8 million, representing a 90.6% decline on the previous corresponding period (pcp). However, the company highlighted a small recovery, which saw TTV increase from $51 million in July and August to $74.4 million in September.

Revenue sank to $12.4 million, an 86.8% fall from the same time from last year. The halt in travel booking effectively put a large number of its agency network in hibernation mode.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) saw a loss of $4.1 million. This was a slight improvement on the $6 million loss forecast by the business.

Helloworld recorded a cash balance of $105 million at the end of the quarter. However, a bank debt was prepaid for $20 million, reducing its free cash to $85 million. The repayment decreased the company’s interest expenditure by $0.4 million per annum.

COVID-19 response

As international air travel dropped by 98% between March and October, Helloworld expects average TTV and revenues to remain low. The company has predicted that these levels will be around 10% to 15% below previous amounts until early 2021.

By responding quickly to the evolving COVID-19 crisis, Helloworld reduced personnel costs up to 75%, saving $9 million per month.

In addition, the company cut other key costs such as technology and communications, advertising and marketing, occupancy and non-personnel overheads.

Retail networks

Retail networks across Australia and New Zealand have been forced to adapt the fallout of travel bookings. A number of outlets have moved their operations to home or shared a premise with other agencies. The company said the liquidity runway for agents was getting shorter, especially without any specific federal government assistance.

Outlook for the Helloworld share price

With the re-opening of interstate borders, Helloworld is anticipating a recovery in the Australian domestic travel market. Furthermore, safe travel corridors established with COVID safe countries is scheduled to commence throughout 2021.

Based on current projections, Helloworld estimates an EBITDA loss of $1.5 million to $2 million per month until March 2021. In the latter of the year, the company advised it will move into a break-even position, conditional on travel bubbles.

Helloworld stated that it has enough liquidity to maintain operations until late 2022, and possibly longer from its current cash burn rate.

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Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Helloworld Limited. The Motley Fool Australia has recommended Helloworld 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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