Tag: Motley Fool Australia

On Tuesday, the Santos Ltd (ASX: STO) share price rose 3.79% to $5.33 despite an announcement that the company would take a non-cash write down of US$700–US$800 million before tax in its half year results. 

What was in the announcement?

Santos announced that it will take a non-cash impairment of US$700–US$800 million in its half year results (to be released on 20 August). According to the company, the impairment is a result of revised oil price assumptions due to the effect of the coronavirus on energy market demand. 

The write down by Santos will consist of a non-cash impairment to its Gladstone liquid natural gas asset in Queensland of US$640–US$700 million before tax, along with an impairment to its exploration assets of US$60–US$100 million before tax. The company stated that its reserves would not be affected.

Santos reported that the write downs would increase gearing by 1.5%, however, it also stated that debt covenants would not be under threat for a number of years at current oil prices.

Commenting on the write downs, Santos Managing Director and CEO Kevin Gallagher said:

Since 2016, Santos has implemented a disciplined operating model that is focused on generating free cash flow through the oil price cycle.

In response to COVID-19 and the lower price environment, Santos announced in March financial measures including reductions in capital and operating expenditure, and a target 2020 free cash flow breakeven oil price of US$25 per barrel.

Our disciplined operating model combined with the proactive measures taken to reduce expenditure saw Santos generate more than US$430 million in free cash flow in the first half of 2020 despite significantly lower oil prices.

Gallagher also highlighted that Santos is well positioned to leverage its growth opportunities when business conditions improve. The company also announced that the impairment would be excluded from underlying earnings and was subject to auditor processes and board approval.

About the Santos share price

Santos is an Australian energy producer that specialises in liquid natural gas. It has assets in Northern Australia and Timor Leste. Santos is Australia’s biggest domestic natural gas supplier and has operated for more than 65 years. 

Earlier this month, Santos announced that the Mahalo gas project, in which it holds a 30% stake, had been granted a 30-year petroleum lease by the Queensland state government. 

In May, Santos announced that it had made an acquisition of assets in Northern Australia and Timor Leste from ConocoPhillips for US$1.265 billion, along with a contingent payment of $200 million.

In the first quarter of 2020, the company produced free cash flow of US$265 million. It had net debt of $3.1 billion.

The Santos share price is up 95% from its 52 week low of $2.73. It has returned -35% since the beginning of the year. The Santos share price is down 22% since this time last year.

More reading

• The worst performing ASX 200 oil stock is finally catching a break today
• 5 things to watch on the ASX 200 on Tuesday
• Are you a ‘risky’ investor in ASX 200 shares?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Chris Chitty 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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If you’re looking to add some small cap ASX shares to your portfolio, then you might want to take a look at the ones listed below.

I believe all three have strong growth potential and are well worth adding to your watchlists:

ELMO Software Ltd (ASX: ELO)

ELMO Software is a $590 million human resources and payroll software company. It provides a unified cloud-based platform that streamlines a wide range of processes for businesses. Its software has been growing in popularity over the last few years and this has continued to be the case in FY 2020 despite the pandemic. This year ELMO Software expects to report annualised recurring revenue (ARR) of $55 million to $57 million. This represents a year on year increase of 20% to 24%. The good news is that this is still only scratching at the surface of its ANZ market opportunity. It also has the option of expanding internationally in the future.

Mach7 Technologies Ltd (ASX: M7T)

Mach7 is a $210 million medical imaging data management solutions provider. The company’s software is used by healthcare organisations to create a clear and complete view of the patient. This then helps users make informed diagnoses, reduce care delivery delays and costs, and improve patient outcomes. During the first half of FY 2020, Mach7 reported revenue of $9.1 million. This is materially less than its total addressable market, which is estimated to be worth US$2.75 billion.

Whispir (ASX: WSP)

Whispir is a $400 million software-as-a-service communications company which provides an industry-leading software platform. Its platform allows businesses to deliver actionable two-way interactions (SMS, voice messages, email) at scale using automated multi-channel communication workflows. Demand for its offering from new and existing customers has been strong in FY 2020, thanks partly to the pandemic. This led to Whispir reporting ARR growth of 35.7% to $42.2 million for the year.

More reading

• Why Catapult, Eclipx, FlexiGroup, & Whispir shares are charging higher
• Whispir share price surges 8% to a record high on stellar Q4 update
• How to get rich by investing in small cap ASX shares
• ASX 200 jumps almost 2% today, Afterpay rises
• 2 ASX tech shares with stellar growth prospects

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 and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MACH7 FPO and Whispir Ltd. The Motley Fool Australia has recommended Elmo Software, MACH7 FPO, and Whispir 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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It has been another very positive day of trade for the Xero Limited (ASX: XRO) share price.

This afternoon the cloud-based business and accounting platform provider’s shares continued their incredible run and reached a new record high.

When the Xero share price reached its new high of $96.56, it meant it had gained 76% from its March low.

It also means that the high-flying tech company’s shares are up 57% since this time last year.

Why is the Xero share price storming higher?

Today’s gain has been driven by particularly positive investor sentiment in the tech sector on Tuesday following strong gains on Wall Street’s Nasdaq index overnight.

It isn’t just Xero pushing higher. The likes of Altium Limited (ASX: ALU) and Nearmap Ltd (ASX: NEA) are also storming notably higher and have helped drive the S&P/ASX 200 Information Technology index 5.1% higher this afternoon.

But that only explains today’s gain. Investors have been buying Xero’s shares consistently over the last 12 months.

Why else is Xero charging higher?

Investors have been fighting to get hold of Xero’s shares after it continued to deliver strong growth across key metrics in FY 2020.

For the 12 months, Xero delivered a 30% increase in operating revenue to NZ$718.2 million and a 29% jump in annualised monthly recurring revenue to NZ$820.6 million.

This was driven by an increase in its average revenue per user metric and a jump in total subscribers by 26% or 467,000 to 2.285 million subscribers.

Xero also started to display further benefits of scale. Although its revenue increased 30%, its earnings before interest, tax, depreciation, and amortisation (EBITDA) lifted 52% to NZ$139.17 million for the year.

The benefits of scale were even more evident on the bottom line, where Xero posted its maiden net profit. Xero’s profit after tax came in at NZ$3.34 million for the year, compared to a loss of NZ$27.14 million a year earlier.

Is it too late to invest?

Although Xero’s shares aren’t cheap, I still believe they could be great long term investment options.

Management estimates that less than 20% of the English-speaking addressable cloud accounting market has adopted cloud platforms. This gives it a huge runway for growth over the next decade. It also has the opportunity to expand into other non-English speaking regions in the future to drive is growth further.

Overall, I feel this means Xero shares have the potential to deliver strong returns for investors throughout the 2020s.

More reading

• Why I would buy Afterpay and these exciting ASX tech shares
• Top fund manager names favourite ASX growth shares
• Is the Xero share price in the buy zone right now?
• How I’d build a $100,000 ASX portfolio of growth shares
• 3 ASX shares for growth, income, and value investors to buy right now

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, Nearmap Ltd., and Xero. The Motley Fool Australia has recommended 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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It’s been a great day for Australian shares today, with the S&P/ASX 200 Index (ASX: XJO) up by 2.3% at the time of  writing. In particular, the biotech sector and the tech sector have been standout performers.

Here we examine 4 ASX biotech shares that have seen particularly strong share price gains today.

Polynovo Ltd (ASX: PNV)

Polynovo shares are up by 4.95% so far today. PolyNovo develops innovative medical devices including its patented polymer technology NovoSorb. The PolyNovo share price increase today comes off the back of a slide in its share price over the past two weeks, which occurred despite the biotech company announcing a record sales month in June in the US market. Polynovo’s overall sales during the June quarter were 33% higher than the previous quarter. The company now forecasts its FY 2020 sales to be more than twice of those in the prior year.

Mesoblast Limited (ASX: MSB)

Mesoblast shares have surged 9.55% today on the back of a market announcement that an advisory committee of the United States Food and Drug Administration (FDA) has scheduled a meeting to review data supporting the company’s Biologics License Application (BLA). This is in relation to the approval of RYONCIL (remestemcel-L), Mesoblast’s drug used for the the treatment of steroid-refractory acute graft versus host disease in children.

Mesoblast has evolved to become a world leader in developing allogeneic, off-the-shelf, cellular medicines.

Paradigm Biopharmaceuticals Ltd (ASX: PAR) 

The Paradigm share price has surged 6.54% higher so far today.

Paradigm’s core drug is pentosan polysulphate sodium (PPS), which has has anti-inflammatory and tissue regenerative properties. The drug is now being trialled for the treatment of osteoarthritis and Paradigm is also looking to expand its usage of PPS to the treatment of other diseases, including mucopolysaccharidosis.

The Paradigm share price was hit hard during the early phase of the coronavirus pandemic, however has been trending upwards since late March.

Zoono Group Ltd (ASX: ZNO)

The Zoono share price has been on fire during 2020. It has increased another 7.37% so far today. Since the beginning of the year, the Zoono share price has increased from $0.63 to now be trading at $2.33 per share.

Zoono has continued to perform strongly from a financial perspective during the fourth quarter. Growth has been driven by growing demand for its antimicrobial solutions during the coronavirus pandemic in the ANZ region. Zoono also has signed key agreements with Johns Lyng Group Ltd (ASX: JLG) and Qantas Airways Limited (ASX: QAN). Unaudited revenue for the fourth quarter came in at NZ$20.9 million. 

More reading

• Why the Telstra share price is underperforming the market
• 2 ASX shares to buy during ‘Dry July’
• Leading brokers name 3 ASX 200 shares to sell today
• How to buy US FAANG stocks on the ASX
• The worst performing ASX 200 oil stock is finally catching a break today

Phil Harpur 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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The Metalstech Ltd (ASX: MTC) share price up by 10.48% to 23 cents today, following the completion of a bookbuild and sell down. The Metalstech share price has been on a tear so far this year, gaining a huge 42% just last week.

Metalstech is involved in lithium and cobalt exploration. The company completed the acquisition of its flagship Sturec Gold project in Slovakia late last year. 

What caused the Metalstech share price to jump?

Metalstech announced today that industrial chemical manufacturer Wuxi Baichuan Chemicals (BBC) has divested its remaining 7,790,000 share stake in Metalstech in a $1.4 million bookbuild and sell down, which was completed at a price of 18 cents per share. BCC has been selling out of its position in Metalstech since April 2020 and, with the recent announcement, the company confirms it has eliminated the Wuxi overhang.

Commenting on the news, Metalstech chair Russel Moran said: “we are pleased that we have been able to deliver this result. The participants in the Bookbuild are gold focused investors that want to see MTC aggressively develop the Sturec Gold project.”

The Metalstech share price has also been driven higher on recent news the company is fast tracking drilling at the Sturec gold mine. Gold has been intersected at a number of the mine’s 9 drilling holes, in promising results for the company.

Tailwinds for Metalstech

Gold is viewed by many investors as a ‘safe haven’ asset and an effective portfolio hedge against economic uncertainty. The Metalstech share price is largely affected by how much gold it can mine, the gold price, and how much it costs the company to extract the gold. Thus, the Metalstech share price has been enjoying the large tailwinds arising from the strong gold price over the past few months.

What now for the Metalstech share price?

The Metalstech share price has had a stellar year to date, gaining a huge 480%. The share price has largely been driven by strong tailwinds and the successful acquisition of the Sturec gold mine. Metlastech shareholders will be hoping that the strong growth may continue, with the share price sitting at 23 cents at time of writing.

More reading

• Why the Xero share price is at a new record high
• 4 exciting ASX biotech shares surging higher today
• These ASX eCommerce shares are riding the online shopping wave
• Why the Telstra share price is underperforming the market
• Bod share price surges 5% on record revenue growth

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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eCommerce has become big business in Australia, accounting for 10% of all retail spending in the country. With the onset of coronavirus, the shift to online shopping has accelerated, with many Australians shopping online for the first time. This shift is likely to be long lasting, with many shoppers expected to choose online over in-store in future. The change in consumer shopping behaviour is a major benefit to ASX retail shares with strong online channels. Let’s take a look at 3 ASX eCommerce shares which are riding the online shopping wave. 

3 ASX eCommerce shares that are outperforming

Kogan.com Ltd (ASX: KGN) 

The Kogan share price is up 241% over the past year and 368% since its March low. Kogan is experiencing increased momentum as a result of the shift to online retailing, even as many retailers are experiencing significant pressure given current market conditions. The online-only retailer saw gross sales rise by more than 100% during the fourth quarter, while gross profit grew by more than 130%. Kogan runs a profitable business that has paid out regular dividends. Total shareholder return since Kogan’s 2016 IPO has been 654.5%, with the company now worth more than Myer and David Jones combined. Kogan is growing its portfolio of online retail and services businesses. This provides diversification of income and multiple growth opportunities. 

Temple & Webster Group Ltd (ASX: TPW) 

The Temple & Webster share price is up 353% over the past year and 366% since its March low. Temple & Webster’s online furniture and homewares business has experienced strong growth since the onset of coronavirus. Year to date revenue to 31 May was up 68% on the prior corresponding period to $151.7 million. Active customer numbers grew 68% to 440,257. Strong trading in April and May continued in June with gross sales up 130% on the prior corresponding period. The company is looking to take advantage of the structural shift to online shopping by enhancing its digital platform and strengthening its product and service offering. 

Redbubble Ltd (ASX: RBL) 

The Redbubble share price is up 157% over the past year and 409% since its March low. Redbubble is a global online marketplace for print-on-demand products. User-submitted artwork can be input to produce shirts, stickers, device cases, posters, and home decor. Face masks were launched in April and instantly became a notable contributor with more than 600,000 units sold, generating $9.4 million in sales. Redbubble saw strong sales growth of over 100% in the June quarter, with macro tailwinds enhancing business performance. Daily sales during the June quarter were the highest in the company’s history outside the Christmas peak of 2019. 

Foolish takeaway

ASX eCommerce shares are seeing concrete benefits from the shift to online shopping. With the trend likely to be lasting, I believe these benefits will continue flowing to these retailers for some time. 

More reading

• Kogan share price rockets higher after delivering impressive Q4 growth
• You probably shop at these 7 ASX retailers. Should you buy shares in them too?
• The Redbubble share price is up almost 500% from its low: Is it too late to invest?
• One thing you should be doing ahead of the ASX reporting season
• Why these 9 ASX shares have doubled in value in the past year

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 Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd, REDBUBBLE FPO, and Temple & Webster Group 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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The Telstra Corporation Ltd (ASX: TLS) share price is under pressure as a new mobile war looms large.

Shares in our largest telco slipped 0.4% to $3.38 during lunch time trade when the S&P/ASX 200 Index (Index:^AXJO) rallied 1.9%.

But Telstra isn’t the worst performer in the sector. The TPG Telecom Ltd (ASX: TPG) share price tumbled 3.1% to $7.84 at the time of writing.

This makes the newly merged TPG and Vodafone entity the second worst performer on the top 200 benchmark after the Alumina Limited (ASX: AWC) share price.

A price war that the market wasn’t expecting

Analysts weren’t counting on another mobile price war between mobile network operators, particularly not after Telstra lifted prices on some of its mobile plans.

I suspect Telstra was counting on Optus and TPG to follow suit after a period of price stability on the market.

The last mobile war put significant pressure on the bottom lines of three operators, and this time won’t be any different if a full-scale assault breaks out.

Shareholders have also seen the devastating impact on profits between the supermarkets when Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) went head to head in a race to the bottom.

The Telstra share price derailed

The miscalculation by Telstra will derail the very recent re-rating of the stock that took it to over $3.50 for the first time since early March when COVID-19 rattled the ASX.

Analysts who are bullish on the stock cited a sustained period of rational competition as one of the reasons to buy the stock.

Shareholders will be a little nervous now although the biggest reason to buy Telstra still holds true.

Is the Telstra share price still a buy?

This is for its dividend as the company should still be able to cough up at least a 16 cent a share annual payout for the foreseeable future.

This puts the yield on Telstra at over 6% if franking credits are included. That’s attractive in this unpredictable and ultra-low rate environment.

Unfortunately, yield isn’t something TPG has much of. Credit Suisse is forecasting a 10 cent a share dividend in FY20 and a doubling the following year to 21 cents. But even then, this puts TPG’s FY21 grossed-up yield at under 4%.

TPG slapped with “sell” recommendation

What’s more, the broker warns that the group’s earnings will be under pressure in FY20 due to COVID-19 restrictions.

“While the company has indicated that it expects to see both a decline in sales of prepaid and postpaid mobile services and lower roaming revenues, no explicit guidance has been provided,” said the Credit Suisse.

“We estimate the roaming revenue hit alone could be over A$100m, with near-term subscriber losses further exacerbating this impact.”

The stock is rated as “underperform” by Credit Suisse with a $7.35 a share price target.

More reading

• 4 exciting ASX biotech shares surging higher today
• 2 ASX shares to buy during ‘Dry July’
• Leading brokers name 3 ASX 200 shares to sell today
• How to buy US FAANG stocks on the ASX
• The worst performing ASX 200 oil stock is finally catching a break today

Motley Fool contributor Brendon Lau owns shares of Telstra Limited, TPG Telecom Limited, and Woolworths Limited. Connect with me on Twitter @brenlau.

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

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The BOD Australia Ltd (ASX: BDA) share price popped 8% today after the release of the company’s recent quarterly activities report, which outlines a record quarter of revenue growth. Bod shares have since pulled back slightly to be sitting at 27 cents per share, up 5.88% on yesterday’s close.

What does Bod do?

Bod Australia is a cannabis-centric healthcare company. Founded in 2014, the company is a developer, manufacturer, distributor and marketer of plant-based natural health supplements and beauty solutions. In late 2016, the company pivoted to focus on cannabis as the market environment improved, developing over the counter and therapeutic products based on good manufacturing practice (‘GMP’) certified cannabis extracts.

Bod recently launched 9 hemp-based products in collaboration with Swisse Wellness, which are being distributed to more than 2,000 leading retailers such as Coles, Priceline and Chemist Warehouse in Australia. The company also operates in the UK.

What is driving the Bod share price higher?

The Bod share price is rising on news that the company has achieved sales revenue of $2.74 million in the quarter ended June 2020. That represents a huge increase of 118% on the previous quarter (Q3 FY 2020). Most impressive, however, was the huge 358% increase in revenue to $6.14 million during FY 2020. The company also announced that cash used in operating activities continued to decrease as revenue from sales increased. 

Bod reports that revenue growth has been driven by unprecedented demand for CBD, hemp products, new international market entries and Bod’s strong relationship with H&H Group Limited. Furthermore, Bod continued to reduce its cash burn during the quarter to $730,000, marking an 11% decrease on the previous quarter.

Commenting on the results, Bod CEO Jo Patterson stated:

This is a great result for Bod and validates the strategic investments made towards key growth opportunities over the past 12 months. Most importantly, Bod now has two core divisions that are generating growing, diversified and sustainable revenue streams and we enter FY2021 with considerable momentum.

New cannabis prescriptions

Adding to the positive sentiment around the Bod share price is the confirmation in today’s announcement that the company has received its first medicinal cannabis prescriptions in the UK. The prescription came from a leading medicinal cannabis organisation, which has a number of clinics in London and the UK.

The UK has approximately 7.3 million consumers using CBD annually and represents a major market opportunity. According to the release, it is estimated this market will grow to be approximately four times larger than Australia’s market by 2028.

Bod also received a prescription from Project Twenty21, Europe’s largest medicinal cannabis registry, targeting 20,000 patients.

What now for Bod?

Looking forward, Bod reports it is focused on delivering important growth objectives via international market and product expansion initiatives. The company has a strong cash balance of $6.3 million, which gives it near-term flexibility and should allow it to pursue growth drivers. The company also confirmed it has not experienced any adverse effect on operations from COVID-19 thus far.

The Bod share price has been on a tear since its lows in March, gaining 125%, however, it remains down around 42% on this time last year.

More reading

• ResMed share price rockets to record highs
• Why Nearmap and 2 other ASX tech shares are surging higher today
• My top 5 ASX growth shares to buy in FY 2021
• 2 ASX shares to buy during ‘Dry July’
• Leading brokers name 3 ASX 200 shares to sell today

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

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The ResMed Inc (ASX: RMD) share price has surged more than 26% since mid-June and is currently trading at record highs. With the coronavirus outbreak in Victoria and fears of a ‘second-wave’ spreading around the country, the medical device company has seen renewed interest.

A leader during the coronavirus pandemic

ResMed has emerged as a leader during the coronavirus pandemic, which has seen the company’s share price make stellar gains for the year. The company saw a surge in demand for its invasive and non-invasive ventilators at the height of the pandemic.

In the three months to 31 March, ResMed tripled its ventilator production, producing more than 52,000 units in order to fulfil an urgent contract from the Australian Government. The company went on to provide around 5,500 invasive and non-invasive ventilators to Australia’s national stockpile.

In addition, ResMed was one of the six companies named to help facilitate the production and supply of ventilators in the United States after the country initiated its Defence Production Act.

How has ResMed performed?

In late April, ResMed announced its results for the third quarter of 2020 which was highlighted by a 16% increase in revenue of $769.5 million. ResMed also reported a 39% increase in net operating profit and GAAP gross margin of 58.4% for the quarter.

The company’s management noted that the coronavirus pandemic resulted in ResMed rapidly pivoting its business in order to accommodate for the production of life support ventilators and mask systems. Despite the surge in demand for masks and ventilators, ResMed saw a decline in new patient diagnoses for its core sleep apnea devices as many people avoided visits to hospitals.

Is it too late to buy at today’s ResMed share price?

With fears of a second wave of coronavirus infections emerging in Australia, the ResMed share price could see further upside as demand for ventilation treatments and respiratory humidifiers increases. In my opinion, demand will not only be limited to Australia as COVID-19 cases continue to surge in other countries.

Brazil, India and South Africa have large populations and ResMed could see substantial demand from these countries as cases continue increasing. In addition, with the winter season approaching in the US, the country could see a more pronounced second wave which could fuel more demand.

ResMed has been a successful Australian company for many years and in my opinion can still deliver double-digit growth despite being at record highs. Another company to keep an eye on is Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) which could also see renewed demand.

More reading

• My top 5 ASX growth shares to buy in FY 2021
• Why these 9 ASX shares have doubled in value in the past year
• Want to beat the market? Try these 3 ASX growth shares
• Invest like Warren Buffett and buy and hold these excellent ASX shares
• 3 ASX medical shares to hold for the long term

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

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The ASX tech sector has been one of the strongest performing market sectors today, with many tech listed companies showing strong share price gains.

Here we look at 3 ASX tech shares that have seen particularly strong share price rises so far today.

Nearmap Ltd (ASX: NEA)

Nearmap shares are on fire today, up by 8.4% at the time of writing.

It has been a rollercoaster ride for the Australian aerial imagery and specialist location data company on the ASX over the past twelve months. One year ago, the Nearmap share price was trading at $3.14, but then trended downward until late March. In particular, the Nearmap share price was hit hard during the early phase of the coronavirus pandemic, dropping to as low as $0.86. Since then it has rallied strongly, and this trend has continued today with its share price currently trading at $2.46.

A positive update in late May is likely to have contributed to the company’s recent share price growth. Nearmap’s customer base continues to grow strongly and customer churn is now below 10%.

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan has been another standout ASX tech share performer today. Its share price is up by a whopping 9% so far today. This follows on from a strong share price rally since late March. 

Bigtincan operates in a fast-growing IT software niche known as ‘sales enablement’. The company suffered heavy share price losses during the early phase of the coronavirus pandemic, but now has recovered most of those losses. Bigtincan recently announced the signing of a major new customer contract with global beverage giant Red Bull. This has helped push its share price higher in recent weeks.

Sezzle Inc (ASX: SZL)

Buy now, pay later (BNPL) fintech provider Sezzle is based in the United States, however is listed on the ASX.

The Sezzle share price has surged 9.8% higher so far today. This follows on from a super strong upward share price trajectory since late March. Since that time, the Sezzle share price has risen from $0.37, to currently be trading at $7.14. That’s a massive increase of more than 1800%!

The BNPL sector has been on a tear in recent months, with other ASX listed providers such as Openpay Group Ltd (ASX: OPY) also performing well.

I think the recent strong rise in the sector is linked to two key factors. Firstly, the pandemic has encouraged a surge in online shopping, which has flowed through to increased BNPL transactions. Secondly, there is growing market acceptance that the BNPL sector appears to be here to stay. This is boosting investor confidence about the long-term growth prospects of the industry.

More reading

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• Why I would buy Afterpay and these exciting ASX tech shares
• Is the Zip share price a buy after falling 20% last week?
• Zip and Openpay were among the most traded shares on the ASX last week
• These are the 10 most shorted shares on the ASX

Phil Harpur owns shares of Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO and Nearmap Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, Nearmap Ltd., and Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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