Tag: Motley Fool

The Mach7 Technologies Ltd (ASX: M7T) share price has taken a tumble in today’s trading session.

Shares in the medical imaging software company have taken a dive after Mach7 released its financial report for the fourth quarter and FY21.

Let’s take a look at how Mach7 performed.   

Mach7 reports back-to-back annual profits

Earlier today, Mach7 released its activities report for the fourth quarter and overall FY21.

The company’s report highlighted Mach7 recording its highest ever cash receipts. The company recorded a 23% growth in cash receipts over the prior year to $21 million.

As a result, Mach7 reported its second consecutive year of positive operating cashflows. For FY21, the company reported positive operating cash of $1.2 million.

In addition, Mach7 recorded its highest annual sales on record. The company reported a 95% increase in sales to $25.64 million in FY21, bringing the company’s customer count to 165.

Mach7 also reported low customer churn, less than 2% for the financial year.

The company also underscored its strong financial position, with Mach7 finishing the year with $18.36 million cash on hand.

Overall, Mach7 expects annual revenue to be in the range of $19 million and $19.5 million. The company noted it will release its audited annual financial report in August.

Looking ahead to FY22, Mach7 expects to see strong double-digit revenue growth (higher than 15%) on FY21’s figure.

More on Mach7’s performance

Mach7 develops innovative data management solutions for healthcare institutions. The company’s revenue is generated through live annual support contracts and monthly subscriptions.

In today’s report, Mach7 noted the company is now generating $13.36 million of annual recurring revenue (ARR). The company said its ARR has more than doubled since the previous year where Mach7 reported an ARR of $6.51 million.

In addition, Mach7 noted that ARR will continue to grow as existing customers become fully deployed and new customers license the software.

Mach7 signed several new sales orders, contracts, and contract renewals during the fourth quarter of FY21.

Just yesterday, Mach7 also announced an expansion order from Advocate Aurora Healthcare valued at $4.3 million over 5 years. But it seems investors aren’t enthused by today’s news.

Snapshot of the Mach7 share price

Despite starting the year relatively strongly, the Mach7 share price has floundered in 2021. Since the start of the year, shares in Mach7 are down 28%.

At the time of writing, the Mach7 share price is trading more than 5% lower for the day at around 91 cents. Shares in the company hit an intra-day low of 87.5 cents earlier, to be down more than 8% for the day.

The post Mach7 (ASX:M7T) share price stumbles 8% on business update appeared first on The Motley Fool Australia.

More reading

• Why the Mach7 (ASX:M7T) share price is pushing higher on Monday
• 2 highly rated small cap ASX shares to watch
• ASX company boss finally exits after 98% wiped off share price

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3xUuMPz

The Crown Resorts Ltd (ASX: CWN) share price is sliding lower today. This comes as counsel assisting the Victorian Royal Commission into the suitably of Crown Melbourne’s casino license argues Australia’s largest gaming operator is not fit to hold its gambling licence in the state.

At the time of writing, Crown shares are trading at $10.48 – down 2.42%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is only 0.68% lower.

Today’s closing arguments by Adrian Finanzio SC are the culmination of months of caustic evidence presented against the company. This includes potential money laundering as well as credit card fraud, tax evasion, and endangering the well-being of problem gamblers.

The royal commission in Victoria was itself sparked when the New South Wales Independent Liquor and Gaming Authority found Crown Resorts unsuitable to hold a gaming licence in the state back in February.

Let’s take a closer look at today’s news.

“…Crown Melbourne is not fit to hold a licence now.”

Mr Finanzio not only slammed the company, its culture and leadership but at one point questioned whether it was even possible for Crown to reform. His arguments were even more damning than those presented in the NSW Bergin inquiry.

Investors appear unimpressed, sending the Crown share price lower on Tuesday.

Particular scorn was reserved for chair Helen Coonan and Crown Melbourne CEO Xavier Walsh.

“[Walsh], along with Ms Coonan, cannot be the critical face of the change required at Crown, if it is to remain the licensee,” counsel assisting said.

“If Crown is to retain its licence, it would be open to the Commissioner to make a finding that Ms Coonan is not a suitable associate of Crown Melbourne.”

He added on Mr Walsh:

In the time since he’s been thrust into positions of greater authority he has, with respect, not risen to the occasion in a way which can give any confidence that he has the necessary qualities to be a suitable associate of Crown.

The royal commission was meant to hand its findings to the Victorian Government on 11 August but this was pushed to October on the recommendation of Commissioner Raymond Finklestein.

At the time, the Acting Premier, James Merlino, said the extension was necessary due to the “seriousness of evidence produced through hearings and submissions to date”.

The Victorian Government has previously indicated it will follow all the recommendations made to it by the royal commission.

Given today’s closing arguments, it now appears genuinely possible Crown may be stripped of its Victorian license. Investors look to be concerned over this eventuating, thus selling down their Crown shares.

Crown share price snapshot

Over the past 12 months, the Crown share price has increased by around 17%. Twelve months ago, the company was still recovering from the first COVID lockdowns, during which it was severely impacted financially.

Crown is not only facing multiple investigations by authorities, it is also the subject of multiple takeover bids – including one by competitor Star Entertainment Group Ltd (ASX: SGR).

Crown Resorts has a market capitalisation of around $7.1 billion.

The post Crown (ASX:CWN) share price falls as Victorian licence danger looms appeared first on The Motley Fool Australia.

More reading

• Crown (ASX:CWN) share price falls amid reports heads are on the block
• Crown (ASX:CWN) share price lower following earnings guidance update

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3eAOVT6

The Recce Pharmaceuticals Ltd (ASX: RCE) share price is on the move today. It comes after the pharmaceutical company provided a patent update on its synthetic anti-infectives.

At the time of writing, the Recce share price is up 5.73% to $1.015. In comparison, the All Ordinaries Index (ASX: XAO) is down 0.65% to 7,238 points.

What’s pushing the Recce share price higher?

The Recce share price is pushing higher today after the Chinese Patent Office granted Patent Family 3 to Recce anti-infectives. Titled ’Anti-virus Agent and Method for Treatment of Viral Infection’, the patent allows marketing and manufacturing monopolies until February 2037.

According to the company’s update, the granted claims relate to antibiotic drug Recce 327 and the new anti-viral formulation Recce 529.

China is considered one of the largest pharmaceutical markets in the world, valued at roughly US$86.74 billion. This places the lucrative Chinese market behind the United States and Japan in terms of revenue size.

The latest patent approval in Family 3 follows recent patent grants in Europe and Japan.

The country witnesses millions of cases where infections are caused by lipid enveloped or coated viruses. Patent Family 3 applications in other major pharmaceutical markets around the world are in their own advanced stages of independent patent reviews.

Recce CEO James Graham commented:

Recce’s intellectual property portfolio continues to grow in line with our business strategy and the unprecedented global infectious disease crisis before us. With this new patent granted in one of the largest pharmaceutical markets in the world, our market monopolies reinforce the unique opportunities among a significant range of both bacterial and viral pathogens.

About the Recce share price

Recce is involved in the advancement of synthetic antibodies designed to address the global health challenge of antibiotic-resistant superbugs. The medical company’s flagship drug Recce 327 is being developed to treat blood infections and sepsis.

The group operates solely in research and development in both Australia and the United States.

The Recce share price has fallen by more than 25% in the past 12 months and 3.3% year-to-date. The company’s shares hit a 52-week low of 86 cents in late June after weak investor sentiment kicked in.

At today’s price, Recce commands a market capitalisation of around $177 million, with roughly 173.7 million shares on issue.

The post Why the Recce (ASX:RCE) share price is racing 5% higher today appeared first on The Motley Fool Australia.

More reading

• Afterpay and Zip were among the most traded ASX shares last week
• AGL (ASX:AGL) share price checks in at new 52-week low
• ASX 200 slips but these experts aren’t worried about a market crash
• Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News
• This ASX fund manager is predicting big things for biotech shares

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/36M633Z

Australia’s leading investment platform provider CommSec has released data on the most traded ASX shares on its platform from last week.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

This buy now pay later (BNPL) provider was far and away the most traded ASX share on CommSec last week. Zip’s shares were attributable to 5.2% of trades on the platform, with 69% of the volume coming from the buy side. This couldn’t stop the Zip share price from tumbling 14.5% over the period, though. News that Apple was looking to launch a BNPL offering weighed heavily on its shares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF was the next most popular ASX share, contributing 2% of total trades on CommSec. This was driven largely by buyers, with 91% of the volume coming from buy orders. This led to the ETF rising by a modest 0.4% over the period. This means the Betashares Nasdaq 100 ETF share price is now up 14% for the year.

Afterpay Ltd (ASX: APT)

Afterpay shares were heavily traded last week and responsible for 1.8% of trades on the platform. And while the buying and selling was broadly even, the sellers will have been the happier group. The aforementioned news about Apple potentially launching a BNPL product led to the Afterpay share price falling 12.2% last week.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This ethical ETF was popular with investors again last week. It was attributable to 1.8% of trades on CommSec, with buyers accounting for 93% of the volume. The ETF recorded another modest weekly gain, taking its shares up 12% year to date. The popularity of ethical investing is supporting inflows into this ETF.

A2 Milk Company Ltd (ASX: A2M)

This infant formula company’s shares were among the most traded again last week. A2 Milk’s shares were attributable to 1.7% of trades on CommSec, with over two-thirds of the volume coming from buyers. However, that wasn’t enough to stop the A2 Milk share price from falling 2.6% over the five days. Concerns over weakness in the daigou channel and the rise of Chinese domestic infant formula brands have been weighing on its shares.

The post Afterpay and Zip were among the most traded ASX shares last week appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, ANZ, JB Hi-Fi, & Zip shares are pushing higher
• Up 6%, the Zip (ASX:Z1P) share price is surging. Here’s why
• ASX 200 midday update: Oil Search rejects Santos merger proposal, Afterpay rolls out Money app
• Afterpay (ASX:APT) share price is higher despite the sharp ASX 200 selloff
• Afterpay (ASX:APT) share price higher after announcing Money by Afterpay app roll out

Motley Fool contributor 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 has recommended AFTERPAY T FPO, BETANASDAQ ETF UNITS, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2W16Bkz

The AGL Energy Limited (ASX: AGL) share price is continuing to fall, hitting a new 52-week low today.

The ASX-listed energy company’s shares have been on a multi-year decline. In 2017, the AGL share price hit an all-time high of $27.70 per share. Since then, shares have gradually eroded. At the time of writing, shares are down 2.36% on yesterday’s closing price to $7.87.

Consequently, one of Australia’s oldest companies is now trading at its lowest level since July 2004.

Investors seem to be growing unsure about AGL’s future with a proposed demerger a possible catalyst.

Uncertainty leaves the AGL share price bleeding

On 30 June 2021, AGL announced its intention to proceed with the proposed demerger. A swift 11% drop in the AGL share price followed. However, the company believes it would be in the best interests of shareholders.

The two separate entities will be known as Accel Energy Limited and AGL Australia Limited. One will focus on the accelerating energy transition, while the other will be a multi-product energy retailing business.

AGL Energy chairman Peter Botten said:

…the impact of recent challenging market conditions on our financial performance emphasises that AGL Energy is now at an inflection point, as the transition of the energy sector accelerates, driven by the rapid evolution in renewables and decentralised energy technology, customer needs and community expectations.

These impacts include falling wholesale electricity prices caused by an increased supply of solar and wind-generated electricity. Unsurprisingly, this has also weighed on the AGL share price.

Next steps

In the meantime, shareholders are waiting patiently to see whether the proposal receives regulatory approvals. According to the previous announcement, the demerger remains conditional on the final AGL board, Australian Tax Office, regulatory, court, and shareholder approval.

Additionally, shareholders are expected to vote via a scheme booklet in the fourth quarter of FY22. In any case, investors will be hoping the losses stem soon.

The AGL share price has collapsed 34% so far in 2021. Likewise, the market capitalisation of the company has tumbled to $4.92 billion.

The post AGL (ASX:AGL) share price checks in at new 52-week low appeared first on The Motley Fool Australia.

More reading

• The AGL share price is now trading on a 10% dividend yield
• Top brokers name 3 ASX shares to sell today
• Why the AGL Energy (ASX:AGL) share price has fallen 15% in 3 months
• It hasn’t been a great 2021 so far for the AGL (ASX:AGL) share price
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2UYMXVA

The S&P/ASX 200 Index (ASX: XJO) is down 0.2% in early afternoon trading, having recouped much of its earlier losses.

In morning trade, the ASX 200 slipped as much as 1.1%. Investors were hitting the sell button here in Australia following large selloffs yesterday (overnight Aussie time) across all the major US and European exchanges.

In the US, the S&P 500 (INDEXSP: .INX) fell 1.6%. The Dow Jones Industrial Average (INDEXDJX: .DJI) had an even worse day, tumbling 2.1%.

The usual bugbears appear to be behind much of the market losses. Namely lingering fears over inflation and rising interest rates, and renewed fears over the spread of the COVID-19 delta variant derailing the global economic recovery.

While those are both real risks to keep an eye on, below we look at why some market experts aren’t overly concerned.

Why these experts aren’t losing sleep over a market crash

The ASX 200 is down 0.9% over the past 5 days, and the S&P 500 is down 2.8% over that same time.

Does that mean the hard-charging bull run is over and we should brace for a share market correction of 10% or more? Or even a crash of 20% or more?

Not according to many market veterans.

Marko Kolanovic, chief global markets strategist at JPMorgan Chase, believes the latest round of selling is overdone. According to Kolanovic (quoted in the Australian Financial Review):

We expect the reflation trade – cyclical stocks, bond yields, high beta stocks, reflation and reopening themes – to bounce imminently as delta variant fears subside and inflation surprises persist.

Capital Economics’ Jonas Goltermann is also decidedly bullish, saying, “Despite some recent setbacks, we think the outlook is considerably brighter than it was then, which is why we still think that US bond yields will rebound.”

Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, adds that while a retrace was expected, the mid-term outlook remains solid:

Valuations across the market as a whole had become stretched and we were due for a pullback. We remain optimistic that the economy is on strong footing and, although the path will be uneven, the trend is still toward increasing growth and higher corporate profits.

Buy the dip strategies on the ASX 200 and global markets

Most long-term investors will tell you it’s a fine line between buying the dip and catching a falling knife.

That means a lot of time when markets (or individual shares) are falling, they can keep falling even after you believe you’ve bought at the dip.

But 2021 has seen the strategy generally well rewarded. With the ASX 200 and S&P 500 rebounding after every selloff.

According to Randy Frederick, managing director of trading and derivatives for Charles Schwab Corp, (quoted by Bloomberg):

The dip buyers have stepped in very quickly and bought very quickly and that’s one of the reasons we haven’t had a full 10% correction – and frankly I don’t think we’ll have one this time either for that reason. Every dip has been bought and immediately paid off within a week or two of not just where it started but above.

Dan Egan, managing director of behavioural finance and investing at Betterment, agrees, saying, “There’s a lot of very young people in the accumulation phase. If they have any excess cash sitting around, they’re going to use it to buy in.”

Among the most bullish of the market experts is Michael Purves, founder and CEO of Tallbacken Capital Advisors. Yesterday, he raised his end of year target for the S&P 500 to 4,800 points. That’s 12.7% above today’s 4,258 points. Purves wrote:

We think the combination of low, and stable, interest rates with a strong earnings growth trajectory will support the equity risk premium at healthy levels at 4,800 at year end. While we are past peak earnings growth, the earnings growth story into and through 2022 will continue to be robust. Further, we find little evidence that a rollover in peak earnings growth is a reason to sell the market.

What about inflation fears?

If inflation rises faster than the central bank chiefs are forecasting, it could usher in higher interest rates sooner than expected. And that would put pressure on equity prices and send the ASX 200 lower.

However, Mark Hickson, 1851 Capital portfolio manager, doesn’t believe this poses significant near term risk, (quoted by the AFR):

The market is becoming more comfortable now with the outlook for inflation. We’re not too worried about inflation or rake hikes in the short term. The equity market typically peaks 12 months after the first rate hike, so we believe we still have a few years of good returns to come.

How the ASX 200 has moved

Despite a small fall over the past week, the ASX 200 remains up around 10% year-to-date. That’s a solid result by any measuring stick, though well behind the 15.1% gains posted by the S&P 500.

Over the past 12 months, the ASX 200 has gained 21.1%.

The post ASX 200 slips but these experts aren’t worried about a market crash appeared first on The Motley Fool Australia.

More reading

• Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News
• This ASX fund manager is predicting big things for biotech shares
• Kogan (ASX:KGN) share price jumps 6% in a week
• 3 reasons why Pro Medicus (ASX:PME) is a top class share
• Why the Woodside Petroleum (ASX:WPL) share price is falling on Tuesday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3BlPsSH

Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Monday night to discuss the cost of the ongoing lockdowns, the impact on the ASX, the resilience of the Wesfarmers share price and CBA’s forecast for a lower Aussie dollar.

The post Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

More reading

• ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight
• Do ASX 200 banks share same BNPL ambitions as Westpac (ASX: WBC)?
• What happened on the US stock market overnight and how could it impact ASX shares?
• Is the Telstra (ASX:TLS) share price good value amid acquisition news?
• ASX 200 drops, Telstra falls, Altium declines

Motley Fool contributor Scott Phillips owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3hQlH4T

Platinum Asset Management Ltd (ASX: PTM) has long been one of the most followed funds management businesses on the ASX. Platinum was founded by the legendary ASX investor Kerr Neilson in the 1990s.

Ever since, the company has been a beacon of value investing on the ASX, even after Neilson’s departure in 2018. Now, Platinum is headed by its co-founder and Neilson protege Andrew Clifford.

Clifford recently sat down with Livewire for an interview. It makes for some interesting reading.

Discussing both Platinum’s history, and its prediction for the winning investing themes of the future, Clifford shared three insights.

Firstly, he sees a very bright and potentially lucrative shift towards the widespread adoption of electric vehicles. Platinum identifies the Korean company LG Chem as a major play in this space. Mr Clifford calls the company “one of the world’s leading suppliers of batteries”.

Secondly, Clifford identifies an opportunity in the search for replacements for single-use plastics. Pointing to Finnish forestry company UPM Kymmene Oy, he says he is excited about this company’s plans to turn timber products into bio-plastics.

Biotech shares for the future

But, thirdly, Clifford is looking to the biotech space for potential future gains. He predicts biotech will “kickstart a revolution in healthcare. Not only in the way we define and treat diseases but also in the way we manufacture products”:

The speed at which we’re coming up with potential solutions in the biotech world — whether it’s gene editing or mRNA — there are vast amounts of development in different areas of the sector that I think will transform the healthcare landscape…

The great lesson of the last year was obviously the way that mRNA technology could be used to create vaccines. We had investments in both BioNTech SE (NASDAQ: BNTX) and Moderna Inc (NASDAQ: MRNA) well ahead of COVID-19 and certainly stepped those up because we knew there would be an opportunity.

Clifford told Livewire that Dr Bianca Ogden, Platinum’s International Health Care fund manager, frequently points out how “molecular biology and computer science are converging” with Artificial Intelligence (AI).

In the report, Clifford said Odgen “believes that in the next 10 years we will start defining neurological disorders by their molecular profile akin to what we do in oncology”.

Exciting stuff.

The Motley Fool recently looked at some of the ASX’s best-performing biotech shares over the 2021 financial year so make sure to check those out next.

The post This ASX fund manager is predicting big things for biotech shares appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares are the most tightly held by individual insiders
• Why Alkane, Carsales, Platinum, & Stockland shares are tumbling lower
• Leading brokers name 3 ASX shares to sell today
• ASX 200 midday update: Nearmap rockets, Incitec Pivot jumps
• Why the Platinum (ASX:PTM) share price is sinking 7.5% on Tuesday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2UrouIN

The Kogan.com Ltd (ASX: KGN) share price is edging higher on Tuesday. At the time of writing, the ecommerce company’s shares are up 0.5% to $11.91.

This means the Kogan share price is up over 6% since this time last week. This compares to a 0.9% decline by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the Kogan share price outperforming?

The catalyst for the rise in the Kogan share price appears to have been recent lockdowns across Australia.

Given that Kogan has been struggling with excess inventory after management failed to anticipate a sharp slowdown in online sales once physical stores reopened, investors appear optimistic that the current lockdowns will boost sales and help reduce its inventory levels.

Fellow ecommerce shares Redbubble Ltd (ASX: RBL) and Temple & Webster Group Ltd (ASX: TPW) have also recorded strong gains over the period. The Redbubble share price is up 12% in a week and the Temple & Webster share price is up 7%.

Is it too late to invest?

Although Kogan shares are outperforming, they are still down by a massive 39% since the start of the year.

This means it may not be too late to invest if analysts at Credit Suisse are to be believed. The broker currently has an outperform rating and $17.93 price target on the company’s shares.

Based on the current Kogan share price, this implies potential upside of 50% over the next 12 months.

Credit Suisse believes the issues Kogan is facing will only be temporary and that investors ought to focus on its positive medium term growth prospects. Particularly given how its active customer base continues to grows.

In addition, Cannacord Genuity is positive on Kogan and has a buy rating and $14.00 price target on its shares. While it has been very disappointed with its performance in the second half, it remains positive on the future.

The post Kogan (ASX:KGN) share price jumps 6% in a week appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 3 reasons why the Kogan (ASX:KGN) share price could be a buy
• These are the 10 most shorted shares on the ASX
• 2 excellent ASX growth shares that could be buys
• Here’s why the Kogan (ASX:KGN) share price is falling on Friday

Motley Fool contributor 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 has recommended Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/36KjSAb

Pro Medicus Ltd (ASX: PME) is a top class ASX share. The business has a few different factors that make it quality option. Those reasons might partly explain why investors are willing to pay a high earnings multiple for the Pro Medicus share price.

What does Pro Medicus do?

For readers that haven’t heard of Pro Medicus before, it’s a business that describes itself as a leading healthcare informatics company. It provides a full range of medical imaging software and services to hospitals, imaging centres and health care groups worldwide.

A key selling point of its software is that it’s easily deployable in both public and private cloud environments. It has offices in Melbourne, Berlin and San Diego.

Why Pro Medicus is a top class ASX share

There are a few different factors that support the quality label.

Very profitable

Pro Medicus is proving to be very profitable when it comes to its profit margins.

In its FY21 half-year result it showed that its earnings before interest and tax (EBIT) margin improved materially from 51% to 59%. The company said this resulted from increased revenue combined with significantly decreased operational expenditure.

The 59% number may not be sustainable as Pro Medicus starts paying for travel and conferences again. But, the company thinks that the capacity to do things remotely, both in terms of sales and implementations, will mean there can be a “new normal” where it can do more things off-site than the past without reducing its effectiveness. Pro Medicus believes this will result in savings going forwards.

Pro Medicus believes there is scope for margins to improve on what they have been historically. That means a significant portion of new revenue, more than half, can turn into EBIT.

Leading in multiple growth regions

The ASX share has been winning large, multi-year agreements in both North America and Europe. Pro Medicus has essentially won all of these important contracts that have come up for grabs, which may suggest that the company is building a reputation as a very strong player in its sector.

The US is a huge market for healthcare operators because of both the population size and the amount of spending there.

Pro Medicus’ latest contract win was an eight-year deal with The University of Vermont Health Network worth $14 million. Visage will replace multiple legacy PACS (picture archiving and communication system).

The company said that the deal extended its US academic institution footprint.

Exciting potential products

It continues to think about the future. New and improved products could help grow its offering, market position and profit.

Last month, the ASX business announced it had signed a multi-year research collaboration agreement with Mayo Clinic.

The agreement will serve as the framework for collaboration between the two parties to facilitate the development and commercialisation in the field of AI leveraging the Visage ‘AI Accelerator’ platform. Mayo Clinic has a depth of clinical knowledge and extensive research expertise, according to Pro Medicus.

The company says that it sees AI playing a significant role in healthcare, particularly in its field of imaging IT.

Pro Medicus share price valuation

It’s valued at 116x FY23’s estimated earnings according to Commsec.

The post 3 reasons why Pro Medicus (ASX:PME) is a top class share appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares are the most tightly held by individual insiders
• Pro Medicus (ASX:PME) share price soars to all-time high
• How did the S&P/ASX All Technologies Index (XTX) perform in FY21?
• The 5 best ASX 200 healthcare shares of financial year 2021
• Are these 2 high-flying ASX shares buys?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2UYJyGi