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The Bubs Australia Ltd (ASX: BUB) share price was an incredibly strong performer on Tuesday.

The embattled infant formula company’s shares jumped a massive 22% to 41 cents.

Despite this sizeable gain, the Bubs share price is still down a sizeable 62% over the last 12 months.

Why did the Bubs share price jump 22%?

Investors were bidding the Bubs share price higher on Tuesday following a promising development in China.

On Monday, the Chinese government announced that it will support couples who wish to have a third child. This compares to its previous policy which limited families to just two children.

The Chinese government revealed that it is making the move due to the country’s ageing population, which continues to grow. According to Xinhua, China’s population aged 60 or above accounted for 18.7% of its total population in 2020, 5.44 percentage points higher than in 2010.

The new policy is expected to help improve China’s population structure, actively respond to the ageing population, and preserve the country’s human resource advantages.

How does Bubs benefit?

As an infant formula manufacturer with a keen focus on the China market, the prospect of a quicker birth rate is a big positive for Bubs.

Especially given how there were concerns that the country’s infant formula market would soon fall into a contraction due to its declining birth rate.

However, it is worth remembering that this doesn’t guarantee that Bubs’ sales will pick up. Competition in the lucrative market continues to increase and domestic brands are becoming increasingly popular with consumers ahead of Bubs and A2 Milk Company Ltd (ASX: A2M).

And while a2 Milk may have a marketing budget that allows it to compete, Bubs doesn’t have that luxury and is already burning through bucket loads of cash each quarter.

More reading

• A2 Milk (ASX:A2M) share price lifts on China child policy change
• Leading brokers name 3 ASX shares to sell today
• Why a2 Milk, Fortescue, Infomedia, & Talga shares are pushing higher
• ASX 200 down 0.5%: A2 Milk rises, Woolworths completes Quantium transaction
• Why the a2 Milk (ASX:A2M) share price crashed 23% in May

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More reading

• Why the Bubs (ASX:BUB) share price surged 22% higher
• Is Australia’s Tritium set to become the next Nasdaq double unicorn?
• Why all eyes are on the BHP (ASX:BHP) share price today
• 2 ASX tech shares that might be buys in June 2021
• 5 things to watch on the ASX 200 on Wednesday

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Sprouting from a little Brisbane startup, Tritium Pty Ltd is metaphorically priming its charging stations for a $2.2 billion Nasdaq listing.

The company is set to merge with the special purpose acquisition company (SPAC) Decarbonization Plus Acquisition Corporation II (NASDAQ: DCRN), with the ambition of accelerating its electrifying aspirations.

A quick refresher, a SPAC is essentially a shell company that raises capital through an initial public offering (IPO). Subsequently, the SPAC will seek to merge or acquire a private company. This offers an efficient method for private companies to go public.

It started with a spark

It may come as a surprise that Tritium has been around for 20 years. The company was founded in 2001 by David Finn, James Kennedy, and Paul Sernia – then students at the University of Queensland.

After working on motor inverters that powered solar cars, the company pivoted to producing DC (direct current) fast chargers for electric vehicles (EVs). The technology implemented was fundamentally the same, but used in a different application.

Having successfully launched its first supercharging station in 2014, Tritium grew alongside the likes of EV producer Tesla Inc (NASDAQ: TSLA).

In an interview with last Thursday’s Australian Financial Review, co-founder and chief growth officer Dr David Finn said:

We really were pioneers in this space. It was an interesting ride. We were trying to be a start-up in an industry that’s starting up. Trying to get the timing right in that was super-challenging.

Despite the challenges, Tritium has expanded its EV charging network across 41 countries. Additionally, the company says it has now sold more than 4,400 chargers.

The Tritium Nasdaq opportunity

EVs only account for about 2.8% of light-vehicle sales globally, according to consultants McKinsey & Company, but the future looks promising. Research conducted by analysts at Deloitte shows an expected EV market share of approximately 32% by 2030.

Furthermore, this potential was reinforced by comments from Dr Finn, who said:

I can tell you the decision has been made. Every single vehicle manufacturer around the world, bar two, are 100% focused on shutting down their internal combustion engine production line and ramping up all their different models.

Tritium has some lofty expectations of its own. In the company’s investor presentation, 2026 revenue projections are for $1,522 million. For context, 2020 full-year revenue came in at $59 million.

Based on the current equity valuation, Tritium’s market capitalisation exceeds US-based rival Blink Charging Co (NASDAQ: BLNK), which is currently valued at A$1.85 billion.

At this stage, a definitive date for when the company will list on the NASDAQ has not been specified. However, the merger has been approved by the boards of directors of both Tritium and DCRN. The next step is now to move towards seeking shareholder approval.

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The BHP Group Ltd (ASX: BHP) share price is one to watch this morning. Investors will be keeping a close eye on the iron ore giant and its fellow ASX-listed peers throughout Wednesday’s trade.

Why is everyone watching the BHP share price?

The big news on Wednesday is the latest economic growth figures due out from the major banks. According to an article in the Australian Financial Review (AFR), many economists are set to upgrade their gross domestic product (GDP) forecasts on the back of surging iron ore prices.

Tuesday’s Reserve Bank of Australia (RBA) release was the catalyst here. Mineral exports soared higher in the March quarter which helped propel Australia’s current account surplus to $18.3 billion. The current account refers to a country’s trade balance, meaning Australia recorded a significant net trade surplus (i.e. more exports than imports).

The BHP share price will be one to watch today as investors digest the latest numbers. Shares in the iron ore giant edged 0.1% higher to close at $47.91 per share on Tuesday afternoon.

However, the company’s value has swelled 11.3% higher in 2021 alone. Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) shares also climbed higher on Tuesday and are worth watching today.

That’s not to say that it has been all smooth sailing for the BHP share price in 2021. Shares in the iron ore giant struggled in May as they came off record highs last month.

According to the AFR article, Australia and New Zealand Banking Group Ltd (ASX: ANZ) economists are now tipping 2.1% GDP growth in the quarter. That’s a lot more bullish than the upgraded market consensus estimate of 1.5%.

Foolish takeaway

The BHP share price is one to watch in early trade. Evidence of a stronger than expected economic recovery continues to help prop up market sentiment.

Investors will be watching the latest economic data throughout the day for any signs of good news.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Imugene and Zip were among the most traded ASX shares last week
• Leading brokers name 3 ASX shares to sell today
• Why a2 Milk, Fortescue, Infomedia, & Talga shares are pushing higher
• ASX 200 down 0.5%: A2 Milk rises, Woolworths completes Quantium transaction

The post Why all eyes are on the BHP (ASX:BHP) share price today appeared first on The Motley Fool Australia.

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There are some high-quality ASX tech shares out there on the ASX boards. A few could be interesting opportunities to look at this month.

Technology businesses have a few inherent advantages when it comes to operating models. Quite a few of them have higher-than-average profit margins.

These are two ASX tech share options that might be interesting:

Betashares Global Cybersecurity ETF (ASX: HACK)

This exchange-traded fund (ETF) is an investment that gives investors access to many of the world’s leading cybersecurity businesses. These are businesses that are both global giants as well as emerging players.

There has been a large increase in digital change by organisations and individuals, particularly since the onset of COVID-19. That has also attracted more cybercrime. There are regular attacks on organisations around the world. It has become imperative that ‘the good guys’ keep developing the best defences.

Global demand for cybersecurity services is growing. In 2017, the size of the global cybersecurity market was $137.6 billion. By 2023, it’s estimated by Statista to be just over $248 billion.

This ETF is a way to get that exposure in a globally diversified way.

It has a total of 40 positions in the portfolio. The biggest ten are: Cisco Systems, Accenture, Crowdstrike Holdings, Zscaler, Splunk, Proofpoint, Fortinet, Akamai Technologies, Fireeye and Leidos.

The ETF has been producing solid returns since inception in August 2016, with an average net return of 19.5% per annum. The last 12 months to the end of April 2021 saw a net return of 30%. Those returns are after the management cost of 0.67% per annum.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an ASX tech share in the payments space. Specifically, it helps large and medium churches with back-end administration tools, gives them the ability to connect with their congregation, and processes donations.

It’s the donations that are a key earner for the company. In the 12 months to 31 March 2021, Pushpay processed US$6.9 billion of donations, which was a 39% increase on the prior corresponding period.

Pushpay is expecting more growth in total processing volume, driven by continued growth in the number of customers using its donor management system, further development of its product set resulting in higher adoption and usage, and increased adoption of digital giving in its customer base.

The company decided to use scalable processes early in its development. Combined with good financial discipline, Pushpay is expecting its investments will allow even more operating leverage to be achieved as revenue grows.

That’s why its bottom line grew so much in FY21. Whilst operating revenue rose 40% to US$181.1 million in the year to March 2021, net profit after tax (NPAT) grew 95% to US$31.2 million and operating cashflow jumped 145% to US$57.6 million.

Pushpay is planning to invest into growing in the Catholic sector over the next few years and it’s also looking for acquisition opportunities with all of the cashflow that it’s generating.

At the current Pushpay share price, it’s valued at 27x FY23’s estimated earnings according to Commsec.

More reading

• Why this quality ASX ETF is back in focus today
• Top ASX shares to buy in June 2021
• 2 quality tech options for ASX investors in June
• 2 quality ASX growth shares with heaps of potential
• 2 strong ETFs for ASX investors

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and edged lower. The benchmark index fell 0.3% to 7,142.6 points.

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

ASX 200 expected to rise

It looks set to be a mildly positive day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher this morning. This follows a subdued start to the week on Wall Street following the Memorial Day holiday. The Dow Jones rose 0.1%, the S&P 500 was flat, and the Nasdaq fell 0.1%.

Iron ore price rises again

BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) shares could be on the rise today after the iron ore price continued to rebound. According to Metal Bulletin, the spot iron ore price is up a further 4.9% to US$208.67 a tonne.

Oil prices hit two-year highs

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a positive day on Wednesday after oil prices hit a two-year high. According to Bloomberg, the WTI crude oil price is up 2.4% to US$67.92 a barrel and the Brent crude oil price is up 1.8% to US$70.54 a barrel. Oil prices jumped after OPEC reconfirmed its gradual production increase plan.

Nine given buy rating

The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price could be good value according to one leading broker. In response to its agreement with Facebook and Google, analysts at Goldman Sachs have reiterated their buy rating and lifted their price target to $3.40. This compares to the latest Nine share price of $2.99.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,902 an ounce. The precious metal eased off a five-month high following the release of positive US economic data.

More reading

• ASX 200 drops, Nine rises and Centuria Industrial REIT falls
• Why are Lynas Rare Earths (ASX:LYC) shares dropping today?
• What you need to know about the RBA’s rate decision today
• Imugene and Zip were among the most traded ASX shares last week
• How did the Magellan (ASX:MFG) share price perform in May?

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Are you looking for some quality ASX dividend shares to add to your income portfolio? 

Then you might want to take a look at the ones listed below. Here’s what you need to know about these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent Group. It is a retail conglomerate primarily focused on the footwear market.

Accent has been growing its earnings and dividends at a solid rate in recent years thanks to the popularity of its store brands, exclusive offering, and its expanding footprint. 

This positive form has continued in FY 2021, with Accent reporting a 6.6% increase in first half sales to $541.3 million and a 57.3% increase in net profit after tax to $52.8 million. Pleasingly, this has continued in the third quarter, with Accent recently reporting an acceleration in its sales growth.

Bell Potter is a big fan of the company and has a buy rating and $3.30 price target on its shares. The broker is also expecting dividends of 11.7 cents per share in FY 2021 and a 12.3 cents per share in FY 2022. Based on the current Accent share price of $2.58, this will mean a fully franked yields of 4.25% and 4.3%, respectively.

Sonic Healthcare Limited (ASX: SHL)

Another ASX dividend share to look at is this global healthcare provider. Sonic has specialist operations in laboratory medicine, pathology, diagnostic imaging, radiology, general practice medicine, and corporate medical services.

Demand for its offering has been strong in FY 2021, particularly for COVID-19 testing. This has underpinned very strong earnings growth. And with COVID testing not going anywhere any time soon, even with vaccines rolling out, Sonic looks well-placed to continue its growth into FY 2022.

Credit Suisse is positive on the company. It has an outperform rating and $40.00 price target on its shares. It is also forecasting partially franked dividends of 93 cents per share in FY 2021 and 97 cents per share dividend in FY 2022. Based on the current Sonic Healthcare share price of $34.61, this will mean yields of 2.7% and 2.8%, respectively.

More reading

• Accent (ASX:AX1) share price rises after sticking with Glue
• 2 ASX dividend shares that could be buys in June 2021
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While small cap shares carry a lot more risk than blue chips, the potential returns on offer are vastly superior. This could make it well worth having a little exposure to this side of the market if your risk tolerance allows.

But which small caps should you be looking at? Two to get better acquainted with are as follows:

Mach7 Technologies Ltd (ASX: M7T)

The first small cap ASX 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 helps users with their diagnoses, reduces costs, and improves outcomes. 

The company has been growing at a solid rate over the last couple of years thanks to strong demand and the acquisition of Client Outlook for A$40.9 million in June last year. The acquisition of the leading provider of an enterprise image viewing technology has both expanded its offering and also its addressable market considerably.

Management estimates that the company now has a US$2.75 billion market opportunity to grow into. This is significantly more than the total contract value (TCV) of $12.84 million Mach7 generated during the third quarter.

Analysts at Morgans are very positive on the company’s prospects. The broker believes that its solutions are well-placed in the current environment, especially with demand for telehealth growing fast. Morgans currently has an add rating and $1.68 price target on Mach7’s shares.

Whispir Ltd (ASX: WSP)

Another small cap to look at is Whispir. It is a technology company providing businesses with a communications workflow platform that automates interactions between organisations and people. This platform helps businesses of all sizes eradicate communication inefficiencies and redundancies so that their staff and clients can connect in new and productive ways. 

Demand continues to grow for Whispir’s platform and is underpinning solid recurring revenue growth. In fact, its third quarter update revealed further growth in this key metric. As of 31 March, the company’s Annualised Recurring Revenue (ARR) was up 20.3% over the prior corresponding period to $50.3 million. This was also up 5.2% since the end of the second quarter.

Ord Minnett is a fan of the company. Its analysts have a buy rating and $4.25 price target on its shares.

More reading

• Why this fund likes these 3 ASX shares
• ASX tech shares roar higher, puts ASX 200 index in the shade
• Could this be why the Whispir (ASX:WSP) share price is up 9% today?
• 3 exciting small cap ASX shares to watch
• 3 exciting ASX growth shares rated as buys

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The S&P/ASX 200 Index (ASX: XJO) dropped by around 0.3% to 7,143 points.

Here are some of the highlights from the ASX:

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine share price went up around 0.7% today after announcing a media deal.

Nine has signed agreements with Facebook and Google, following the Federal Government’s enacting of the ‘News Media Bargaining Code’.

The deal with Facebook is for the supply of news video clips and access to digital news articles on Facebook news products, for a term of up to three years with a minimum amount payable over the term.

The 5-year agreement with Google includes the supply of news content (excluding video) for Google’s News Showcase and other news products. Google will also expand its marketing initiatives across Nine’s platforms.

Nine said in terms of guidance regarding these agreements, as well as the termination of Google’s previous sales agreement, and the ongoing growth in subscription revenue for Nine’s key mastheads, it expects growth in the publishing division earnings, before interest, tax, depreciation and amortisation (EBITDA) in FY22 (over FY21) in the range of $30 million to $40 million.

Centuria Industrial REIT (ASX: CIP)

The real estate investment trust (REIT) announced external revaluations for its 61 investment properties as it 30 June 2021.

The ASX 200 share’s total portfolio increased to $2.9 billion. On a like for like basis, the portfolio valuation increased by $285 million, or 11%, from prior book values.

That brought the pro forma net tangible assets (NTA) to $3.85 per unit, an increase of 16% from $3.33.

Jesse Curtis, the fund manager of Centuria Industrial REIT, said:

Strong sector tailwinds continue to provide long-term benefits to industrial real estate with e-commerce and onshoring increasing demand for quality industrial accommodation. CIP is a beneficiary of the buoyant tenant market with a number of assets delivering valuation gains on the back of strategic leasing. Over the course of FY21, CIP has leased approximately 196,000m2 demonstrating the increased tenant demand for industrial space, which is expected to continue given limited future land supply in in-fill markets.

WISR Ltd (ASX: WZR)

The business announced it had originated $77.1 million of new loans in the first two months of the fourth quarter of FY21. Wisr said it’s getting close to its 20^th consecutive quarter of growth.

It also said that its inaugural $225 million asset-backed securities ‘ABS’ transaction, the Wisr Freedom Trust 2021-1, has reached settlement, delivering a material reduction in Wisr’s cost of funds.

Wisr CEO Mr Anthony Nantes said:

It’s fantastic to see the continuation of our loan origination momentum. Our growth to date has us in prime position to aggressively grow market-show, as we scale towards our medium-term target of a $1 billion loan book. We’re delivering a clear competitive advantage through a superior alternative model that actually improves financial wellness, going far beyond the traditional lending experience to attract Australia’s most creditworthy customers.

More reading

• Why the Nuix (ASX:NXL) share price fell 30% in May
• Why are Lynas Rare Earths (ASX:LYC) shares dropping today?
• What you need to know about the RBA’s rate decision today
• How did the Magellan (ASX:MFG) share price perform in May?
• Here’s what drove the Qantas (ASX:QAN) share price in May

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May was another choppy month for the Lynas Rare Earths Ltd (ASX: LYC) share price.

Its shares started the month strong, rising almost 10% from $5.50 to $6.01 by 11 May. But by the end of the month, its shares had gone full circle, closing at $5.51.

Why May was a rollercoaster ride for Lynas shares

Rare earth prices cool down

According to the Shanghai Metals Market, neodymium-praseodymium (NdPr) oxide prices have cooled down from ~US$83,000/tonne to ~US$75,300/tonne in May.

Similarly, Trading Economics observes that neodymium prices topped out from March highs of more than ~US$133,300/tonne to under ~US$94,000/tonne. This brings neodymium prices to roughly breakeven year-to-date, but much higher than the subdued levels it was trading at last year.

NdPr is a core material produced by Lynas, with its quarterly result highlighting 1,358 tonnes of NdPr production.

Commodity producing companies are always to some degree anchored to spot prices. Classic ASX200 miners such as BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are perhaps more extreme examples of where its shares rise and fall by the iron ore spot price.

Despite Lynas’ recent investor presentation highlighting the company as one which “supplies essential materials to exciting growth industries” with “exposure to global megatrends and future-facing technologies” including electric vehicles, green technologies and robotics, a pullback in rare earth prices in the near-term could be a reason why its shares struggled to make headway in May.

Lingering Chinese production concerns?

A major catalyst behind the recent underperformance of the Lynas share price appears to be its quarterly results. The results read well at face value, with an improvement in production, rare earth prices and scoring a number of operational milestones.

However, it only took a few sentences to wipe out a chunk of Lynas’ valuation, driving the almost 20% decline in the Lynas share price between 20 to 22 April. The quarterly observed that several Chinese rare earth producers had planned to increase production. China is responsible for more than half the world’s rare earth production, and among its plans to increase production was the behemoth Northern Rare Earth.

This Chinese company accounts for some 60% of China’s total rare earth production, with plans to double production in the next three years.

An optimist could say that the increase in production is in response to the rising demand for electric vehicles and green technologies. But an influx of Chinese production could also weigh on prices in the medium to long term.

More reading

• Why are Lynas Rare Earths (ASX:LYC) shares dropping today?
• Why BetMakers, Blackmores, Lynas, & Westgold shares are dropping
• 3 ASX shares that could benefit from Biden’s Aussie electric vehicle swing
• Lynas (ASX:LYC) share price slides following Malaysian update

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