Tag: Motley Fool

Last night, while most Australians slept, Prime Minister Scott Morrison helped shine the spotlight on ASX hydrogen shares. He told the Leaders Summit on Climate about Australia’s plans to create a booming hydrogen industry. He said:

In Australia our ambition is to produce the cheapest clean hydrogen in the world, at $2 per kilogram Australian…

Mr President, in the United States you have the Silicon Valley. Here in Australia we are creating our own ‘Hydrogen Valleys’.

It seems the federal government is working to make hydrogen power the backbone of our emissions reduction strategy. Luckily, some Australian companies are already on it.

Here are 3 ASX-listed companies working towards producing sustainable hydrogen.

Hazer Group Ltd (ASX: HZR)

This company relies on its own “Hazer Process”, converting methane into hydrogen using iron ore as the process’ catalyst. Using this method, Hazer produces two products – hydrogen and synthetic graphite.

This works because methane is made up of around 75% carbon and 25% hydrogen, and graphite is a carbon product. By removing the hydrogen and securing the carbon, Hazer can produce synthetic graphite for the lithium-ion battery industry.

At Friday’s close, the Hazer share price was trading at $1.22, up 54% year to date.

The company has a market capitalisation of around $177 million, with approximately 145 million shares outstanding.

Provence Resources Ltd (ASX: PRL)

Provence Resources has its finger in many a pie, and one of those is hydrogen energy.

It’s currently working towards producing hydrogen in Western Australia. The company says it’s focused on an abundance of renewable electricity possibilities, with options including wind, solar and geothermal. Provence is looking to tap into the potential of these to power its electrolysis process – needed to separate hydrogen from other substances – with renewable energy. 

The company has recently partnered with French company Total Eren to begin a feasibility study on the project.

The Provence Resources share price closed this week trading at 20 cents, up a whopping 1,920% year to date.

The company has a market capitalisation of around $186 million, with approximately 891 million shares outstanding.

Pure Hydrogen Corporation Ltd (ASX: PH2)

Pure Hydrogen is a relatively new player in the game. It’s the result of a merger between former ASX companies Strata-X Energy Ltd and Real Energy Corporation. The two companies merged earlier this year and became Pure Hydrogen.

The company is currently progressing five hydrogen projects – one in Queensland with another four operating through a joint venture, planned to be located on the east coast of Australia.

Pure Hydrogen has a joint venture with Synergen Group that will see it producing hydrogen from methane using Synergen’s modular plant technology.

Synergen’s module plants are about the size of a shipping container and portable. It says the technology is a world first and could be a catalyst for the industry.

The Pure Hydrogen share price ended Friday’s session at 26 cents, having gained around 180% year to date. It should be noted, however, that these gains were predominantly achieved under the company’s prior trading name, Strata-X Energy. Since the newly merged Pure Hydrogen began trading on 17 March, the company has executed a capital raise and seen its shares fall by around 20%. 

Pure Hydrogen has a market capitalisation of around $72 million, with approximately 317 million shares outstanding.

More reading

• Why the Province Resources (ASX:PRL) share price just hit an all-time high
• Why the Province Resources (ASX:PRL) share price is up 12%
• Up 390% in 1 year, why the Pure Hydrogen (ASX:PH2) share price is seesawing today
• Province Resources (ASX:PRL) share price slides despite hitting next project milestone

Motley Fool contributor Brooke Cooper 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.

The post 3 ASX shares eyeing Australia’s ‘Hydrogen Valley’ appeared first on The Motley Fool Australia.

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

If you’re an income investor with a long term view, then you might want to consider the dividend shares listed below.

While they may not provide the largest yields on the market today, they look well-positioned to grow their dividends at an above-average rate over the next decade.

This could make them dividend stars of the future:

Integral Diagnostics Ltd (ASX: IDX)

Integral Diagnostics is a medical imaging service provider that operates from a total of 72 radiology clinics, including 26 comprehensive sites.

Demand for its services has been strong despite the pandemic. For example, during the first half of FY 2021, Integral Diagnostics reported a 29.5% increase in revenue to $170.7 million and an even more impressive 61.1% jump in net profit after tax to $23.2 million.

Over the last 12 months, the company has paid shareholders dividends of 9.5 cents per share. Based on the latest Integral Diagnostics share price, this represents a fully franked 2% yield.

However, analysts at Goldman Sachs expect this to grow strongly in the future. It has pencilled in a dividend of 15.4 cents per share in FY 2023, which will mean a yield of 3.3% at that point.

Kogan.com Ltd (ASX: KGN)

Kogan is one of Australia’s leading ecommerce companies. It has over 3 million active customers across its Kogan business and over 700,000 for its Mighty Ape business.

While it isn’t traditionally classed as a dividend share, the Kogan share price has crashed lower in 2021. This means it now offers a reasonably attractive trailing dividend yield, which has the potential to widen considerably over the coming years.

Kogan paid shareholders a final dividend of 13.5 cents per share in FY 2020 and an interim dividend of 16 cents per share in FY 2021. This represents a fully franked 29.5 cents per share over the last 12 months. Which, based on the latest Kogan share price of $10.69, represents a yield of ~2.8%.

What Kogan will pay over the next 12 months is difficult to say due to its declining profitability during the second half, but investors that are patient are likely to be rewarded handsomely over the next decade.

More reading

• These were the worst performers on the ASX 200 last week
• Growing pains, or something worse, for Kogan?
• The ASX healthcare shares Goldman Sachs rates as a buy
• ASX 200 finishes flat, Kogan drops, Accent jumps
• Why a2 Milk, Centaurus Metals, Kogan, & Youfoodz are sinking today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX shares that could be dividend stars of the future appeared first on The Motley Fool Australia.

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

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Megaport Ltd (ASX: MP1)

According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this elastic interconnection services provider’s shares to $17.10. This follows the release of its third quarter update. Although Megaport added fewer new ports than the broker was expecting, it remains positive on the company thanks to its exposure to the shift to the cloud. UBS is expecting Megaport to more than double its revenue between FY 2021 and FY 2023. The Megaport share price ended the week at $13.51.

Nuix Ltd (ASX: NXL)

Analysts at Morgan Stanley have retained their overweight rating but cut the price target on this investigative analytics and intelligence software provider’s shares to $7.50. According to the note, the broker was obviously disappointed to see the company downgrade its guidance due to a reduction in near term usage and a shift in its sales mix. However, it is holding firm with its overweight rating as it believes the global forensic and investigative software market is a structural growth story and Nuix is well-placed within it. The Nuix share price was fetching $4.61 at the end of the week.

Temple & Webster Group Ltd (ASX: TPW)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted their price target on this online furniture and homewares retailer’s shares to $15.00. Although the market wasn’t a fan of Temple & Webster’s plan to invest heavily in its growth at the expense of its margins, Morgan Stanley believes it is the right thing to do. The broker expects this to strengthen its moat and leave it well-placed to benefit from the ongoing shift to online shopping. The Temple & Webster share price ended the week at $9.39.

More reading

• These were the best performers on the ASX 200 last week
• Which ASX 200 shares were the best performers this week?
• Why Accent, AMP, De Grey, & Nuix shares are charging higher
• ASX 200 down 0.1%: Kogan crashes, AMP’s demerger plans, Telstra strengthens 5G network
• ASX 200 recovers, Redbubble sinks, Megaport jumps

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 MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended MEGAPORT FPO, Nuix Pty Ltd, and 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.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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

By now, we are probably all familiar with the government’s COVID-19 early release superannuation scheme that was initiated last year. Targeted as a stimulus and hardship measure, this scheme enabled eligible adults to withdraw up to $20,000 from their superannuation accounts for the majority of 2020.

This was a controversial measure, as the purpose of the superannuation scheme is to provide an adequate income in retirement for Australians. And without placing a burden on the Age Pension system.

Since super works by harnessing compound interest, early withdrawals can have a far larger effect on a workers potential retirement balance than just the dollar value of the withdrawn cash.

But we are only now realising the full impacts that this scene may have had, especially for women and younger Australians.

According to new research from Colonial First State’s Retirement Realities research, more than $36 billion was collectively withdrawn from the nation’s super accounts through the early release scheme in 2020. And the withdrawals were disproportionately concentrated amongst younger Australians. The research found that 65% of withdrawals were made by people under the age of 40. And, almost one-third of that $36 billion was withdrawn by members under the age of 30.

Super funds are still looking empty

Interestingly, of those who accessed an early super payment, 59% still had a contribution paid into their account in 2020. But only 4% did so through a voluntary personal contribution, with another 14% receiving government contributions.

Colonial First State also found that 41% of its members who initiated an early withdrawal from super have yet to start rebuilding their savings. This is especially important for younger Australians. These Australians have the most to lose from missing out on years of compound interest potential. As an example, a $20,000 lump sum will grow to just over $40,000 over 10 years. That’s at an average compounded annual growth rate of 7% per annum.

But what about over 30 years, which is how long a 25-year old worker might expect to remain in the workforce? Well, that potential loss grows to more than $160,000 at that same 7%.

That view was backed up by Colonial First State general manager, Kelly Power. Ms Power stated the following on what younger Australians should now be doing with their super:

We are now encouraging Australians to consider a plan to rebuild their nest eggs and replenish their super. It is positive to see that of our members who withdrew their super early, half of those have made headway in making contributions, whether through their employer or own pocket, to get their super back on track. For younger members in particular, now is the time to start making up some lost ground by using these contributions to rebuild their savings for the years ahead.

More reading

• Top brokers name 3 ASX shares to buy next week
• Is the CBA (ASX:CBA) share price a buy for a recovery of dividends?
• Top brokers name 3 ASX shares to sell next week
• Lest We Forget
• Meet the real ASX winners from record high Chinese steel prices

Motley Fool contributor Sebastian Bowen 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.

The post Young people dominated COVID super withdrawals last year appeared first on The Motley Fool Australia.

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

Is the Commonwealth Bank of Australia (ASX: CBA) share price worth buying for the recovery in dividends over the next 12 months?

Will Commonwealth Bank of Australia go through a recovery?

In many ways Commonwealth Bank of Australia has already gone through a recovery. The CBA share price has already gone up by 52% over the last year and it’s up 28% over the last six months.

That other banks of Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) are reporting that profit has recovered compared to the difficult COVID-19 period thanks to lower impairment charges.

CBA’s latest result was a bit different because it was a half-year result covering six months rather than a quarterly update of the latest three months like the other big ASX banks.

Commonwealth Bank of Australia’s half-year result for the six months to 31 December 2020, showed that statutory net profit after tax (NPAT) was down 20.8% to $4.88 billion and cash NPAT fell 10.8% to $3.89 billion.

The biggest bank said that NPAT was supported by strong business outcomes but impacted by the low rate environment and COVID-19. Its loan impairment expense was $882 million, up $233 million. The total loan impairment provision was further increased during the period with a total provision coverage ratio of 1.81%. The loan loss rate for the half was 22 basis points.

In terms of the dividend, CBA paid a $1.50 dividend per share. That was up 53% on the second half of FY20, but down 25% on the prior corresponding period.

The bank said that the capital strength was a highlight of the result. It finished the period with a common equity tier 1 (CET1) capital ratio of 12.6%.

What does CBA think about the outlook?

CBA said that although the outlook is positive, there are a number of health and economic risks that could dampen the pace of the recovery.

It continues to monitor its lending portfolios closely for any signs of stress. The bank said that the low interest rate environment will continue to put pressure on its revenue. CBA said that its strength of the balance sheet and capital position enables it to support customers and help the country through recovery.

Is it worth buying for the dividend?

CBA has had long reputation for dividends for a long time and its dividend is expected to recover over the last few years.

The broker Morgans thinks that Commonwealth Bank will pay a dividend of $3.64 per share in FY21. That translates to a grossed-up dividend yield of 5.8% at the current CBA share price.

In FY22 it’s expected by Morgans to pay a dividend of $4.10 per share. That would be a grossed-up dividend yield of 6.5%.

The broker thinks that the CBA share price is expensive and doesn’t think it is as good value compared to Westpac, NAB and ANZ.

Morgans has a price target of $72 on CBA shares, meaning it thinks CBA is going to go backwards fairly substantially over the next year.

More reading

• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX dividend shares to buy today
• History is on the side of the battered AMP (ASX:AMP) share price as it plans its demerger
• Why the NAB (ASX:NAB) share price is up 70% in 12 months
• Can Commonwealth Bank (ASX:CBA) share price beat its record in 2021?

Motley Fool contributor Tristan Harrison 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.

The post Is the CBA (ASX:CBA) share price a buy for a recovery of dividends? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sXFr97

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Credit Suisse, its analysts have resumed coverage on this infant formula company’s shares with an underperform rating and $7.15 price target. The broker has suggested that China’s declining birth rate could result in the infant formula market contracting in the coming years. In fact, it estimates that the number of babies of infant formula age could reduce by almost a third in 2025 compared to 2018’s numbers. The a2 Milk share price ended the week at $7.38.

Blackmores Limited (ASX: BKL)

Analysts at Citi have retained their sell rating and $59.20 price target on this health supplements company’s shares. According to the note, the broker has been undertaking research in China and found that consumers now have a preference for domestic brands. It fears this could weigh on its performance in the key market. In addition, Citi has concerns over increasing competition in the Australian market. The Blackmores share price was fetching $75.50 at the close of play on Friday.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgans reveals that its analysts have retained their reduce rating but lifted their price target on this banking giant’s shares to $72.00. According to the note, the broker is expecting some solid updates by the banks in the coming weeks. In fact, it feels they may surprise to the upside when they report. However, while it has lifted its earnings estimates for Australia’s largest bank, it still believes its shares are expensive at the current level. The Commonwealth Bank share price ended the week at a 52-week high of $89.39.

More reading

• Why a2 Milk, Centaurus Metals, Kogan, & Youfoodz are sinking today
• Can Commonwealth Bank (ASX:CBA) share price beat its record in 2021?
• Brokers name 3 ASX shares to buy now
• Is the Blackmores (ASX:BKL) share price in the buy zone?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk and Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3dT4BBv

I was still a kid in 1987 when Australia belatedly welcomed home our Vietnam Veterans.

I can’t really remember what conversations I was part of, or overheard. At least not in any detail.

But I remember, deep in my bones, how important that march was for those returned service personnel.

How viscerally important.

It didn’t heal old wounds. At least not completely.

But it was, in many respects, if not a new beginning, at least a new place from which to continue.

My father was a Vietnam Veteran.

He bore the emotional scars of his service.

And the emotional scars of his — our — nation’s shameful treatment of our Veterans.

That Welcome Home parade showed me how important commemoration is.

It says ‘we know’.

It says ‘we remember’

It says ‘we care’.

Today is ANZAC Day.

It is, for our nation, and for our cousins, allies and comrades in arms in New Zealand, a sacred day.

It might be the most important day on our national calendar.

As it was last year, this ANZAC Day commemoration will be different to most.

Many Dawn Services have been cancelled.

Many marches have been scaled back.

But, as we do every year, today we will remember.

We will, in our own ways, stand in solidarity. In solemnity. In silence.

I was fortunate to get one of a limited number of tickets to the scaled down Dawn Service at the RSL Sub-Branch of which my father was, for a time, President.

As the dawn breaks today, I will be where I’ve been on more ANZAC Days than I can count.

So many times that I think I could probably recite the order of service by heart.

Yet the service never fails to affect me.

So much, sacrificed by so many.

The soldiers, sailors and aviators who paid the supreme sacrifice.

Those who returned, with the physical, mental and emotional scars of their service.

They went because their country asked them to.

They served in our name.

The duty falls to us, to remember.

These are the words of the ANZAC Dedication:

At this hour, upon this day, ANZAC received its baptism of fire and became one of the immortal names in history.

We who are gathered here think of the comrades who went out with us to battle but did not return. We feel them still near us in spirit. We wish to be worthy of their great sacrifice.

Let us, therefore, once again dedicate ourselves to the service of the ideals for which they died. 

As the dawn is even now about to pierce the night, so let their memory inspire us to work for the coming of the new light into the dark places of the world.

This morning — today — we remember.

They shall grow not old,

as we that are left grow old;

Age shall not weary them,

nor the years condemn.

At the going down of the sun

and in the morning

We will remember them.

Lest We Forget.

More reading

• Meet the real ASX winners from record high Chinese steel prices
• 2 quality ASX growth shares rated as buys
• 2 growing small cap ASX shares you need to watch
• What’s next for the Telstra (ASX:TLS) share price?
• How $20,000 turns into $250,000 in 10 years with ASX shares

The post Lest We Forget appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/32K07qf

Record high Chinese steel prices will put ASX iron ore producers in the spotlight on Monday, but there’s another group of ASX shares that could be the real winners.

While the futures market is pointing to a small drop in the S&P/ASX 200 Index (Index:^AXJO) investors will be eyeing the Fortescue Metals Group Limited (ASX: FMG) share price, Rio Tinto Limited (ASX: RIO) share price and BHP Group Ltd (ASX: BHP) share price to see how they react to the jump in the price of steel on Friday.

However, its the BlueScope Steel Limited (ASX: BSL) share price and Sims Ltd (ASX: SGM) share price that could benefit more. I’ll explain in a moment.

Chinese steel prices at record highs

The Rebar price hit its highest level on the Shanghai Futures Exchange since record began in 2009, reported Bloomberg.

Further, Hot-Rolled Coil (HRC) is trading close to a seven-year high with both steel products gaining 2% last week.

The price increases come even as Chinese authorities threaten to clamp down on steel production.

Steel output curbs could impact on ASX mining shares

“We expect the central government will likely launch a nationwide production control plan soon,” Bloomberg quoted a Citigroup report.

“Despite the market concerns of potential inflation risks, we believe the government is determined to curb steel production in order to reduce its carbon footprint.”

What’s more, nationwide controls could be followed by more cuts in other provinces in the second half.

Not all bad news for ASX iron ore miners

Chinese restrictions are a potential threat to ASX iron ore miners. The commodity they export are a critical input consumed by steel mills.

But experts are divided on how big of a risk this poses to the ASX shares. While weakening steel output technically means lower demand for iron ore, supply curbs are supportive of high steel prices.

High steel prices are great news for our miners as the price of iron ore is likely to remain near record highs of their own.

Brazilian wildcard

The thing that could tip the scale in favour of the bulls or bears may be Brazil. Output from Australia’s rival iron ore supplier is struggling due to the rampant outbreak of COVID-19.

Brazil’s largest iron ore miner, Vale SA, missed production expectations for the first quarter of 2021. News that the country’s environmental agency ordered Vale to suspend operations at its Ilha da Guaiba export terminal is adding to the angst.

However, Bloomberg reported that another Brazilian government department has allowed Vale to resume exports at the terminal hours later.

The uncertainty in Brazil will make forecasting all that much challenging for ASX investors.

The real ASX shares that benefit from record steel prices

While experts are working out the real impact of China’s measures on ASX iron ore shares, shareholders in BlueScope and Sims will be grinning.

If Chinese steel prices remain buoyant, this will also likely put upside pressure on global steel prices. That puts the BlueScope share price and Sims share price in the box seat as their margins should be able to withstand lofty iron ore prices.

And if they are doubly lucky, the iron ore price may weaken to deliver their bottom line an extra boost.

More reading

• These were the best performers on the ASX 200 last week
• High iron ore prices are boosting the Fortescue (ASX:FMG) share price again
• These were the worst performers on the ASX 200 last week
• ASX 200 finishes flat, Kogan drops, Accent jumps
• Top brokers name 3 ASX dividend shares to buy today

The post Meet the real ASX winners from record high Chinese steel prices appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3dJJa5F

If you’re a fan of growth shares like I am, then you’ll be pleased to learn that the Australian share market is home to a good number of them.

But with so many options, it can be hard to decide which ones to choose over others. To narrow things down, I have picked out two growth shares that are highly rated. They are as follows:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is a growing online beauty retailer. It was founded in a Melbourne garage by Kate Morris and James Height back in 2000.

Since then, it has evolved into an integrated content, marketing, and ecommerce retail platform in order to better meet customer needs. And what a lot of customers it is meeting the needs of.

At the end of the first half of FY 2021, the company had almost 800,000 active customers. From these, it generated revenue of $96.2 million, up 85% on the prior corresponding period.

Positively, even if you annualise this, it is still only a very small slice of the Australian beauty and personal market worth an estimated ~$11 billion a year. This gives it a very long runway for growth, particularly given the low penetration of online beauty sales compared to other Western markets.

Morgan Stanley is a fan of the company. Last month its analysts reiterated their overweight rating and lifted their price target on its shares to $8.75.

Breville Group Ltd (ASX: BRG)

Another growth share for investors to consider is this appliance manufacturer.

Breville has been growing strongly over the last decade thanks to the increasing popularity of its products and its international expansion. Positively, the latter is continuing and provides it with numerous growth opportunities.

As does the acquisition of Seattle-based coffee grinding company Baratza late last year. This brought together two of the world’s leading companies in the design and global distribution of coffee products.

Like Adore Beauty, Breville was a strong performer in the first half of FY 2021. It delivered a 28.8% increase in revenue to $711 million and a 29.2% increase in net profit after tax to $64.2 million.

The good news is that the second half is expected to be similarly strong. It is forecasting EBIT of $136 million for the full year. This will be a 20% year on year increase.

UBS is bullish on the company due to product launches and its expansion into new markets. Its analysts have a buy rating and $35.70 price target on its shares.

More reading

• 3 outstanding ASX growth shares
• Why retailers are stepping up as top performing ASX shares this week
• 3 fantastic ASX shares to buy this month
• Brokers name 3 ASX shares to buy now
• 2 rapidly growing ASX shares to buy

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. 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.

The post 2 quality ASX growth shares rated as buys appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3xliOi8

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:

Damstra Holdings Ltd (ASX: DTC)

The first small cap to look at is Damstra. It is an integrated workplace management solutions provider.

Damstra provides businesses with a cloud-based workplace management platform that tracks, manages, and protects their workers and assets. 

Demand for its offering has been growing strongly in recent years and has continued in FY 2021. For example, in February Damstra reported a 29.6% increase in revenue to $13.3 million. 

Analysts at Shaw and Partners are positive on the company. They currently have a buy rating and $1.93 price target on its shares. This compares to the latest Damstra share price of $1.10.

Whispir Lrd (ASX: WSP)

Another small cap to look at is Whispir. It is a technology company that provides a communications workflow platform automating interactions between organisations and people.

There’s a very strong chance that you’ll have come across its offering in your day to day life. Uses included COVID-19 communications by the government at the height of the pandemic and website chat pop ups that are designed to reduce call centre volumes.

Demand continues to grow for Whispir’s platform, which is underpinning solid recurring revenue growth. In fact, just this week the company released its third quarter update and revealed further growth in this key metric.

Analysts at Ord Minnett have been pleased with its performance this year. As a result, they currently have a buy rating and $4.25 price target on its shares. This compares to the latest Whispir share price of $3.32.

More reading

• Whispir (ASX:WSP) share price charges higher following Q3 update
• 3 excellent small cap ASX shares to watch closely
• 3 growing small cap ASX tech shares to watch
• 3 exciting small cap ASX shares to watch closely
• 2 small cap ASX tech shares to buy 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 and recommends Damstra Holdings Ltd and Whispir Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 growing small cap ASX shares you need to watch appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sN63tl