Stock Pick – Page 6838 – Curated Stock Market News

U.S. FDA alerts on false positive result from Becton Dickinson COVID-19 test

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6 July 2020
Here’s why the Carbonxt share price soared 32% yesterday
The Carbonxt Group Ltd (ASX:CG1) share price closed yesterday’s trade up 32.43% for the day, thanks to the completion of a successful $2 million capital raising.

What happened?

Yesterday morning, Carbonxt announced it has received firm commitments to raise approximately $2 million (before costs) from leading institutions and investors. Despite the issue price of 16 cents for the 13 million new ordinary shares in the company, the Carbonxt share price closed yesterday at 24 cents. This follows a large increase of 19% last Monday.

The company reported that the placement received very strong support both from new and existing investors. The placement will be used to strengthen Carbonxt’s balance sheet and position the company to accelerate growth into FY21.

In its capital raising presentation, Carbonxt advised that its anticipated FY20 growth did not eventuate, due to a number of factors including extended payments impacting revenue growth. The company provided revised FY20 guidance, with revenue now expected to come in at $16 million, $2 million down on its earlier forecast.

The release also forecast strong revenue growth of 40% or more in FY21, as customers return to levels similar to that of pre-COVID-19. The company expects to be profitable and cashflow positive from 2QFY21.

What does Carbonxt do?

Carbonxt is a cleantech company that specialises in the production of powdered and pelletised activated carbons for use in industrial pollution and emission control.

Carbonxt has recently released a new pellet aimed at removing phosphate from streams. The development of these pellets would eliminate any reliance on third-party and foreign-sourced input materials, contributing to significant margin expansion expected in FY21.

About the Carbonxt share price

The Carbonxt share price fell from its 54 cent high earlier this year down to 12 cents in March. Despite yesterday’s gains, the Carbonxt share price is still down 52% year to date, and 19% lower than this time last year.

5 stocks under $5

We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

See the 5 stocks

*Extreme Opportunities returns as of June 5th 2020

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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.

The post Here’s why the Carbonxt share price soared 32% yesterday appeared first on Motley Fool Australia.

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6 July 2020
5 things to watch on the ASX 200 on Tuesday
On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a disappointing fashion. The benchmark index fell 0.7% to 6,014.6 points.

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

ASX 200 expected to rebound.

It looks set to be a more positive day of trade for the ASX 200 on Tuesday. According to the latest SPI futures, the benchmark index is expected to open 29 points or 0.5% higher this morning. This follows a very positive start to the week on Wall Street, which saw the Dow Jones rise 1.8%, the S&P 500 climb 1.6%, and the Nasdaq jump 2.2%. Tech shares played a key role in driving these indices higher.

Reserve Bank meeting.

This afternoon the Reserve Bank of Australia will hold its monetary policy meeting and decide whether to cut the cash rate down to zero. According to the latest cash rate futures, the market is pricing in a 62% probability of a rate cut today. This means that a cut is far from certain, but is definitely in play. A rate cut would arguably be a negative for Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four.

Oil prices mixed.

Energy producers including Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a mixed night of trade for oil prices. According to Bloomberg, the WTI crude oil price is flat at US$40.65 a barrel and the Brent crude oil price is up 0.6% to US$4307 a barrel. Positive supply data was supporting oil prices.

Gold price rises.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise after the gold price strengthened. According to CNBC, the spot gold price rose 0.25% to US$1,794.80 an ounce. The gold price climbed higher on the back of surging coronavirus case numbers.

QBE added to conviction buy rating.

The QBE Insurance Group Ltd (ASX: QBE) share price could be on the rise on Tuesday after Goldman Sachs added the insurance giant to its conviction buy list with an $11.26 price target. The broker believes QBE has two medium term opportunities to create value for shareholders. These are upside from putting (potential) excess capital to work and margin expansion from operating leverage.

Where to invest $1,000 right now

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

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

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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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6 July 2020
Expectations are that we’re going to see a 45% YoY decline in the S&P 500: Chief Investment Strategist

The impact of COVID-19 is still being felt within markets. Sam Stovall, Chief Investment Strategist at CFRA joins The Final Round to break down what that might look like in Q2.

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6 July 2020
Why you should watch these exciting small cap ASX healthcare shares closely
One area of the market which I think is home to a lot of exciting shares is the healthcare sector.

Two that I feel are standouts at the small end of the sector are listed below. Here’s why I think they are worth watching very closely:

Mach7 Technologies Ltd (ASX: M7T)

The first small cap healthcare share to look at is Mach7. It is a medical imaging data management solutions provider which uses software to create a clear and complete view of the patient. This software helps to inform diagnosis, reduce care delivery delays and costs, and, importantly, improve patient outcomes.

While this product alone has a sizeable market opportunity, the company has recently expanded its offering via the acquisition of Client Outlook. The acquisition of this leading provider of an enterprise image viewing technology has increased Mach7’s total addressable market from US$0.75 billion to a sizeable US$2.75 billion. Given that Mach7 generated revenue of $9.1 million in the first half, it clearly has a long runway for growth over the next decade. This could make Mach7 shares a great long term option.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a healthcare technology company which uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. It has been growing its market share in the United States at a rapid rate in recent years and currently has an installed software base covering over 27% of U.S. women screened for breast cancer. The sizeable increase in its installed base has led to very strong revenue growth, with the company more than doubling its subscription revenues in FY 2020.

The good news is that Volpara still has a very long runway for growth and is aiming to increase its average revenue per user (ARPU) materially in the future. Management is looking to grow its ARPU to upwards of US$10 per user, up from US$1.04 per user at present. It feels it can achieve this by having radiologists utilise its full product suite during screening sessions. If it delivers on this, then I suspect the Volpara share price will be materially higher at the end of the decade.

5 stocks under $5

We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

See the 5 stocks

*Extreme Opportunities returns as of June 5th 2020

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MACH7 FPO and VOLPARA FPO NZ. The Motley Fool Australia has recommended MACH7 FPO and VOLPARA FPO NZ. 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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6 July 2020
Need To Know: Dropbox, Inc. (NASDAQ:DBX) Insiders Have Been Buying Shares

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also…

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6 July 2020
How a Biden Victory May Impact the Stock Market

With Biden surging ahead of President Trump in 2020 election polls, investors are beginning to worry that a Biden presidency could end the market-friendly policies Trump has propagated. Yahoo Finance’s Rick Newman and Kristin Myers discuss.

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6 July 2020
3 Penny Stocks to Benefit From the Coronavirus Outbreak

Out on the Street, it’s full speed ahead. Despite the chaotic events of 2020, the S&P 500, which is coming off of its best quarter in more than 20 years, is down by only 2% year-to-date. Somewhat remarkably, the market has continued to charge forward as the number of new COVID-19 cases surges. As COVID-19 could be with us in waves for some time, there’s plenty of uncertainty going forward into the second half of the year. Consequently, spotting compelling plays can feel like a fool’s errand, especially given the hefty toll the virus has already taken on companies spanning multiple sectors.Having said that, the Street’s pros argue that the pandemic has actually positioned some names as beneficiaries. Looking specifically at the biotech sector, massive amounts of capital have been pumped into a handful of names racing to develop solutions to combat the virus.Bearing this in mind, we used TipRanks’ database to get more information on three biotech penny stocks, trading for less than $5 per share, that are poised for COVID-related gains. While these tickers are risky in nature, the investing platform revealed that all of these Buy-rated tickers have been flagged by some analysts for their huge potential.CTI BioPharma Corporation (CTIC)Focused on the development of innovative therapies, CTI BioPharma wants to address the unmet medical needs of patients. Given the potential of its COVID-19 treatment and its $1.18 share price, it’s no wonder this healthcare name is on Wall Street’s radar.CTIC scored major investor attention after it initiated the Phase 3 PRE-VENT study of its pacritinib asset in COVID patients, with the study evaluating whether the therapy can reduce the occurrence of acute respiratory distress syndrome (ARDS). It should be noted that the study will include cancer patients, and initial data is expected by YE:20.Writing for Needham, five-star analyst Chad Messer points out that ARDS, which is caused by an overreaction of the immune system, is the leading cause of mortality in COVID-19 patients. What makes CTIC’s therapy a stand-out, in Messer’s opinion, is that unlike ruxolitinib, it doesn’t target JAK1. This is important as JAK1 inhibition has been associated with immune-suppression towards infections.“Pacritinib also inhibits CSF-1R which is associated with macrophage activation. Additionally, pacritinib is less thrombocyotpenic than other JAK inhibitors. These features differentiate pacritinib and may make it a potential best in class JAK inhibitor for treatment of severe COVID infection,” Messer commented. To this end, Messer continues to give CTIC his stamp of approval. Along with a Buy rating, the top analyst keeps the price target at $3.50. Should the target be met, a twelve-month gain of 195% could be in the cards. (To watch Messer’s track record, click here)Other analysts also take a bullish approach. CTIC’s Strong Buy consensus rating breaks down into 3 Buys and zero Holds or Sells. Additionally, the $3.50 average price target matches Messer’s. (See CTIC stock analysis on TipRanks)PhaseBio Pharmaceuticals (PHAS)When it comes to PhaseBio, its focus lands squarely on the lack of new treatment options for serious cardiovascular diseases. Even though the pandemic has created challenges for the company, several members of the Street believe it can overcome these obstacles, with its $4.39 price tag reflecting an attractive entry point.Five-star analyst Andrew Fein, of H.C. Wainwright, reminds investors that its lead candidate, PB2452, which was designed to reverse ticagrelor antiplatelet effects in major uncontrolled bleeding and urgent emergency surgery events, has entered its pivotal Phase 3 trial. While this is exciting, the analyst doesn’t dispute that COVID-19 has spurred headwinds.Expounding on this, Fein stated, “Specifically, ERs have focused their attention on treating COVID-19 patients, while surgical sites remain in the process of trying to get back up and running amid shelter-in-place guidance. Therefore, we believe site initiations and patient enrollment are to continue to be site specific for the foreseeable future, based on available site resources and overall quarantine guidelines.” That being said, Fein remains optimistic about the PB2452 platform, as it “directly addresses the unmet therapeutic need in antiplatelet patients facing major bleeding and urgent surgery circumstances that could otherwise result in death or treatment delay.” He added, “We point out there are no ticagrelor or antiplatelet reversal agents, and ticagrelor reversibly binds the P2Y12 receptor, making it the only potentially reversible oral antiplatelet therapy.”Although enrollment was halted for the Phase 2 PB1046 program, the fact that PB2452 Phase 2a data could potentially be presented during the upcoming European Society of Cardiology (ESC) 2020 virtual conference in August 2020 seals the deal for Fein. To this end, Fein maintained a Buy rating on PHAS with an $18 price target, suggesting 298% upside potential from current levels. (To watch Fein’s track record, click here) Looking at the consensus breakdown, other analysts are on the same page. With 5 Buys and no Holds or Sells, the word on the Street is that PHAS is a Strong Buy. The $13 average price target puts the upside potential at 187%. (See PhaseBio stock analysis on TipRanks)Diffusion Pharmaceuticals (DFFN)As for the final stock on our list, Diffusion Pharmaceuticals develops new treatments for life-threatening medical conditions by improving the body’s ability to deliver oxygen to the areas where it is needed most. Currently going for $0.95 apiece, one analyst thinks that now is the time to snap up shares.Covering DFFN for H.C. Wainwright, analyst Swayampakula Ramakanth is looking forward to the initiation of its COVID-19 study. At the end of May, the company received a response from the FDA regarding its Pre-Investigational New Drug (PIND) meeting request on the proposed clinical development program to assess trans sodium crocetinate (TSC) in COVID-19 patients with severe respiratory symptoms and low oxygen levels.The FDA stated the study should be designed as a double-blinded, controlled, randomized trial by including Gilead’s COVID-19 treatment, remdesivir, as a component of standard of care for hospitalized patients. Additionally, the agency also accepted the proposed safety and oxygenation marker endpoints.If that wasn’t enough, Ramakanth highlights the fact that a European COVID-19 study of TSC will be conducted in collaboration with the Romanian National Institute of Infectious Diseases (NIID), which is the largest provider of treatment for COVID-19 patients in Romania. “Diffusion expects to enroll the first patient for the European study in June, upon regulatory approval, and report initial data in 3Q20, which we believe could be a catalyst,” the analyst said.It’s true that the ongoing public health crisis could slow down the enrollment for its Phase 2 PHAST-TSC (Pre-Hospital Administration of Stroke Therapy-TSC) stroke study, designed to evaluate the therapy as an acute stroke treatment. That said, Ramakanth remains unphased by a possible delay.“In our view, given that the pandemic is starting to abate and TSC is being studied as acute treatment, Diffusion could be able to get the PHAST-TSC study completed as planned. While reporting the company’s 4Q19 earnings, management stated their expectation to complete the study enrollment in 2021 and report topline data in 2022,” the analyst explained.Based on all of the above, Ramakanth rates DFFN a Buy along with a $3.50 price target. This target suggests shares could soar 286% in the next twelve months. (To watch Ramakanth’s track record, click here)To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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6 July 2020
Why NEXTDC and these high flying ASX shares just hit record highs
Although the S&P/ASX 200 Index (ASX: XJO) took a tumble on Monday, it wasn’t enough to stop some shares from charging to new record highs.

Three ASX shares that achieved this feat are listed below. Here’s why they are flying high:

Marley Spoon AG (ASX: MMM)

The Marley Spoon share price hit a new record high of $1.89 on Monday. The meal kit delivery company’s shares have been on fire during the pandemic after lockdowns led to a surge in demand. This strong demand resulted in Marley Spoon reporting revenue of 42.8 million euros in the first quarter of FY 2020. This was an impressive 46% increase on the prior corresponding period. Pleasingly, as a result of this better than expected performance, management advised that it will soon become profitable. It expects to achieve positive operating EBITDA during the second quarter.

NEXTDC Ltd (ASX: NXT)

The NEXTDC share price was pushing higher again yesterday and reached a new record high of $11.24. Investors have been buying the data centre operator’s shares this year after the pandemic accelerated the shift to the cloud and ultimately demand for capacity in its centres. This continued last week with NEXTDC announcing major new contract wins in New South Wales. These new wins have lifted the contracted commitments at its New South Wales data centre facilities by approximately 4MW to more than 36MW. However, if you include contracted expansion options, its data centres in the state are now approaching 60MW. This is more than the total capacity of its S1 and S2 data centres. It will also eat into the S3 data centre’s capacity once that is constructed.

Objective Corporation Limited (ASX: OCL)

The Objective Corporation share price continued its impressive run and hit a record high of $9.49 on Monday. This latest gain means the software company’s shares have now rebounded 240% from their March lows. Investors appear confident the software company’s services will be in demand following the pandemic and have been snapping up shares. Objective has a suite of software that enables secure file sharing, helps government agencies respond to information requests, streamlines and improves processes, and strengthens corporate governance practices. Earlier this month it announced the acquisition of Itree for $18.5 million. Itree is a government regtech solution specialist.

Where to invest $1,000 right now

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

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

See The 5 Stocks

*Returns as of June 30th

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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Objective Limited. 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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6 July 2020
These ASX dividend shares will help you beat low interest rates
Luckily in this low interest rate environment, there are plenty of shares on the ASX paying generous dividends.

Two which I think would be top options for income investors right now are listed below. Here’s why I like them:

BHP Group Ltd (ASX: BHP)

I think this mining giant is a great dividend share to buy. This is because the Big Australian looks well-positioned to generate strong free cash flows in FY 2020 and FY 2021 thanks to its low cost operations and favourable commodity prices.

The latter is particularly the case for iron ore, which is currently trading at ~US$100 a tonne. This compares to the company’s full year cost guidance of just US$13-14 per tonne at its Western Australia Iron Ore operation. Based on the current BHP share price, I estimate that its shares offer investors a forward fully franked ~5% dividend yield.

BWP Trust (ASX: BWP)

Another dividend share that I would buy is this commercial property trust. BWP is the largest owner of Bunnings Warehouse sites in Australia with a total of 68 leases. While having such a reliance on a single customer can be a risk, in this case I see it as a strength. This is because Bunnings is owned by Wesfarmers Ltd (ASX: WES), which is also a major shareholder of BWP. I believe this means it is highly unlikely to do anything that would impact its investment.

In addition to this, given the quality of the Bunnings business and its positive outlook, I feel the risk of rental defaults and mass closures is extremely low. All in all, I think this leaves BWP well-placed to grow its distribution at a modest rate each year for the foreseeable future. For now, based on the latest BWP share price, I estimate that it offers investors a 4.75% FY 2021 yield.

Where to invest $1,000 right now

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

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

See The 5 Stocks

*Returns as of June 30th

More reading
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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 These ASX dividend shares will help you beat low interest rates appeared first on Motley Fool Australia.

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6 July 2020