Tag: Motley Fool

  • Why the OptiScan (ASX:OIL) share price is rocketing 26% today

    A drawing of a white rocket streaking up, indicating a surging share pirce movement

    The OptiScan Imaging Limited (ASX: OIL) share price is one of the best performers on the ASX today. This comes after the company announced the strategic appointment of a highly experienced industry executive.

    At the time of writing, the imagining medical technology company’s shares are fetching 32 cents apiece, up 26%. It’s worth noting that today’s monumental gain now puts OptiScan shares into an all-time high.

    What’s driving the OptiScan share price higher?

    Investors appear excited about the company’s latest inclusion, sending OptiScan shares into new territory.

    In its announcement, OptiScan advised it has appointed Mr Robert Cooke as non-executive chair to the board.

    The company highlighted Mr Cooke’s extensive experience in the health industry, noting over 40 years of service. In this time, Mr Cooke has held important roles in both public and private companies in Australia, Asia, and the United Kingdom. Most notably, Mr Cooke served as managing director and CEO of Healthscope from 2010 until 2017. Healthscope is one of Australia’s leading private hospital, medical centre, and pathology operators.

    Currently, Mr Cooke is a non-executive director of Icon Group as well as Evercare Group.

    Following the appointment, David Lurie will take over the reins and become managing director of the company.

    Management commentary

    Mr Cooke commented on the appointment, saying:

    I am excited to join the Board of the Company as the Chair and to support the current team at OptiScan in the next stage of its dynamic growth plans.

    With its collaborations with world-class research and medical institutions, the Company is well-placed to embark on the global commercialisation of its world- leading technology in Oral cancer screening and surgery as well as pursuing additional clinical applications.

    The ability of OptiScan’s unique confocal technology to provide instantaneous, live imaging at a cellular level has the opportunity to revolutionise cancer screening and surgical practices with the resulting benefits for patient care

    OptiScan new managing director, David Lurie went on to add:

    It is a fantastic opportunity for OptiScan to secure someone of Mr Cooke’s capabilities and track record to lead our board. His knowledge of international corporate activity and multiple aspects of the health care sector including private health, pathology, pharmacy, radiology and IVF will provide enormous benefit to the company.

    The OptiScan share price has gained close to 900% over the past 12 months, and is up almost 200% year-to-date.

    Where to invest $1,000 right now

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

    *Returns as of February 15th 2021

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    Motley Fool contributor Aaron Teboneras 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.

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  • Wesfarmers (ASX:WES) share price climbs 10% in a month amid ‘favourable momentum’

    The Wesfarmers Ltd (ASX: WES) share price continues to climb today, adding to strong gains this past month.

    At the time of writing, the Wesfarmers share price is up 0.5% to $55.94 per share, putting its gains over the past month at just under 10%.

    Wesfarmers is a diversified Australian business with broad business operations including home improvement and outdoor living, apparel and general merchandise, office supplies; and an industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products.

    From its origins in 1914 as a Western Australian farmers’ cooperative, Wesfarmers has grown into one of Australia’s largest listed companies trading on the ASX. Headquartered in Perth, Western Australia, Wesfarmers subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks and more.

    Strong online search interest

    The company’s strong performance online is one factor that could have provided the impetus for the Wesfarmers share price’s 10% gains this past month. 

    Recent research from Macquarie looked at Google Trends data and found that Wesfarmers-owned Kmart leads in digital interest in home retail. Similarly, Wesfarmers-owned hardware giant Bunnings leads online hardware searches.

    Bunnings has become a retail goliath in Australia with little clear competition since the demise of Woolworths (ASX: WOW) -owned Masters.

    As the Motley Fool reported earlier this month, Wesfarmers has an enviable position with its brand stable. Bunnings is Australia’s leading hardware retailer, Officeworks is the leading office supplies retailer, Kmart is the leading discount retailer.

    Meanwhile, Wesfarmers’ would-be Australian online Amazon-rival, Catch, is expanding as an online retailer. 

    However, while online search interest in Bunnings and Kmart has been strong, interest has fallen over recent months in both Catch and Officeworks, which both showed heightened interest in the November to January period.

    “Wesfarmers has seen favourable momentum in Bunnings and Kmart for online search activity as value remains a key driver for consumers,” Macquarie said, as quoted by News.com.au.

    “As expected, Easter long weekend led to heightened search interest, as people continue home-improvement projects.”

    Wesfarmers share price snapshot

    Wesfarmers hasn’t released a price-sensitive market update since its 2021 half-year FY21 report on 18 February, where it announced a 16% increase in total revenue.

    The Wesfarmers share price has continued to rise steadily though, adding 3% the past week and 10% the past month, creating a 46% gain over the past 12 months.

    Where to invest $1,000 right now

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    Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Why GPT, Mayne Pharma, Talga, & Zip shares are tumbling lower

    A stockmarket chart on a red background with an arrow going down, indicating falling share price

    The S&P/ASX 200 Index (ASX: XJO) has started the week in a mildly positive fashion. In afternoon trade, the benchmark index is up 0.2% to 7,076.3 points.

    Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

    GPT Group (ASX: GPT)

    The GPT share price is down 3% to $4.67. Investors have been selling the property investment company’s shares after it released its guidance for the full year. According to the release, GPT advised that it expects to deliver year on year funds from operations (FFO) growth of 8% and distribution per security growth of 12% in FY 2021. While this is positive, it appears as though the market was expecting more.

    Mayne Pharma Group Ltd (ASX: MYX)

    The Mayne Pharma share price has fallen 6.5% to 47.7 cents. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has downgraded the pharmaceutical company’s shares to an underperform rating with an improved price target on 38 cents. While it notes that the FDA has just approved its Nextstellis contraceptive product, it isn’t enough to become more positive. Macquarie expects business conditions to remain subdued in the short term.

    Talga Group Ltd (ASX: TLG)

    The Talga share price has tumbled 5% lower to $1.37. This is despite the company providing an update on its electric vehicle anode (EVA) qualification plant. According to the release, designs for the plant have been finalised and engineering work is progressing well. It has now placed orders for the materials and equipment needed to build the plant. Talga hopes to commence its EVA plant’s installation in the fourth quarter of 2021.

    Zip Co Ltd (ASX: Z1P)

    The Zip share price has dropped 4% to $9.00. This decline appears to have been driven by profit taking following a very strong gain last week. In fact, the Zip share price was the best performer on the ASX 200 last week with a gain of 13%. One broker that believes it can still go higher is Citi. Last week it upgraded its shares to a buy rating with an $11.30 price target.

    Where to invest $1,000 right now

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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.

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  • Why has the Advanced Human Imaging (ASX:AHI) share price plunged 5%?

    A woman holds her face and recoils in horror, indicating a share price drop

    The Advanced Human Imaging Ltd (ASX: AHI) share price is sinking on its first day of trading in nearly 3 weeks. The image capture and dimensioning technology provider, formerly known as MyFiziq, ended its prolonged trading halt this morning with 2 pieces of seemingly positive news.

    Despite the good news, the Advanced Human Imaging share price has plunged 5.3% and is swapping hands for $1.94 at the time of writing. An improvement, at least, on the intraday low of $1.85 that it plummeted to in opening trade.

    Let’s take a closer look at the 2 announcements the company shared this morning.

    Agreements with Triage

    Today, Advanced Human Imaging shared news of a binding technology license and a subscription agreement with Canada-based Triage Technologies Inc.

    Through the agreements, Advanced Human Imaging will use Triage’s dermatological AI system in its CompleteScan product. In return, the Advanced Human Imaging team will improve Triage’s AI engine to provide an on-device application for consumers.

    According to Triage, its AI program can identify 588 skin conditions, including all skin cancers. The company claims it is more effective in correctly identifying skin conditions than dermatologists.

    Triage received a USA patent for its system in 2020 and expects further jurisdictions to follow.

    Advanced Human Imaging’s CompleteScan is a mobile-based app that analyses photos of a users’ skin, face and body to provide a total health assessment.

    As part of the agreement, Advanced Human Imaging will pay Triage US$3 million, US$600,000 of which is already paid. Advanced Human Imaging stated that some of these payments are ‘at call’ and are not binding commitments.

    The payments will be spread out over 14 months as, while the company has the funds needed for the initial payments, the remaining payments will be made up of its cash flow or additional capital.

    Advanced Human Imaging is also taking a strategic equity stake in Triage.

    Letter of intent to acquire Physimax

    The second piece of news out of Advanced Human Imaging today is its letter of intent to acquire Israel-based Physimax Technologies Limited.

    Advanced Human Imaging has offered to purchase Physimax for US$6 million worth of its own shares. It has also agreed to issue a further US$2 million worth of shares through an earn-out agreement, the terms of which are yet to be released.

    Physimax is a musculoskeletal assessment company. It has developed and patented software that tracks and improves musculoskeletal wellness and performance, using videos captured on mobile phones.

    The technology does not need wearables. Instead, it measures and scores mobility, stability, strength, and movement control using movement patterns and analysis.

    Its assessment is then paired with an AI-delivered, personalised workout program.

    Physimax’s software is used by healthcare providers, the NFL, NBA, pro-soccer teams and US military units.

    Commentary from management

    Advanced Human Imaging chair and CEO Vlado Bosanac commented on the agreement with Triage, saying:

    By bringing in platforms like personal health/wellness and medical checking application, the addition of Triage not only broadens user/market interest in AHI capability, but also generates better service by combining all these functionalities directly on the smartphone/mobile device.

    Mr Bosanac added that Physimax would be a welcome addition to the AHI MultiScan platform.

    The Physimax team has spent 7 years developing, validating and commercialising the technology and has seen broad acceptance of the application worldwide with over 250,000 scans performed to date…

    We will continue to identify opportunities of this kind that are complementary to the AHI offering, with a view to either a partnership or when advantageous, acquisition.

    Advanced Human Imaging share price snapshot

    The Advanced Human Imaging share price has bloomed on the ASX recently.

    While it got off to a slow start this year, it’s currently up by 52% year to date. It’s also up a whopping 1,118% over the last 12 months.

    The company has a market capitalisation of around $276 million, with approximately 134 million shares outstanding.

    Where to invest $1,000 right now

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

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

    *Returns as of February 15th 2021

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    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.

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  • 3 ASX retail shares at record highs

    A happy shopper lifts her bags high, indicating a rising share price in ASX retail companies

    While the market as a whole has been in fine form in 2021, one area of the market performing particularly strongly has been the retail sector.

    For example, since the start of the year, the S&P/ASX 200 Consumer Discretionary Sector (ASX: XDJ) has climbed an impressive 11.1%. This compares to a solid 5.9% gain by the S&P/ASX 200 Index (ASX: XJO).

    In light of this, it will come as no surprise to learn that a number of retail shares have been pushing notably higher this year. Some have even managed to climb to 52-week highs or better today.

    Here’s why these ASX retail shares are scaling new heights:

    Adairs Ltd (ASX: ADH)

    The Adairs share price climbed to a record high of $4.60 today. Investors have been fighting to get hold of this homewares retailer’s shares in 2021 thanks to a very strong performance in the first half. For the six months ended 31 December, Adairs reported a 34.8% increase in group sales to $243 million. This was driven by a 20.9% increase in Adairs sales, a 44.4% jump in Mocka sales, and strong online sales growth. And thanks to a significant expansion in its gross margin, Adairs reported a 166% increase in underlying earnings before interest and tax (EBIT) to $60.2 million. This excludes JobKeeper payments, which were returned to the government. Interestingly, just this morning Wilsons tipped the Adairs share price to continue its ascent. It has retained its buy rating and lifted its price target by 29% to $5.80.

    Baby Bunting Group Ltd (ASX: BBN)

    The Baby Bunting share price reached an all-time high of $6.34 today. The catalyst for its strong share price performance was an impressive performance during the first half and its expansion plans. In respect to the former, the baby products retailer delivered a 16.6% increase in total sales to $217.3 million. This was driven by a 15% increase in comparable store sales and a 95.9% increase in online sales. Pleasingly, due to a 41-basis points expansion in its gross margin, the company recorded a 43.5% increase in pro forma net profit after tax to $10.8 million. As for its expansion plans, after a successful online launch in New Zealand, Baby Bunting now plans to open its first physical store in the country in FY 2022.

    Reece Ltd (ASX: REH)

    The Reece share price climbed to a record high of $20.34 on Monday. Investors have been buying the bathroom, kitchen, plumbing and HVAC-R supplies company’s shares this year due partly to a solid half year result in February. For the six months ended 31 December, Reece reported a 4% increase in sales revenue to $3,074 million and a 12% increase in normalised earnings before interest, tax, depreciation and amortisation (EBITDA) to $349 million. Positively, with the housing market booming, demand for its offering looks likely to strengthen in the second half.

    Where to invest $1,000 right now

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

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  • Why the ClearVue (ASX:CPV) share price just hit an all-time high

    unstoppable asx share price represented by man in superman cape pointing skyward

    The ClearVue Technologies Ltd (ASX: CPV) share price just hit an all-time high. Shares hit a high of 84 cents intraday trading today. By the time of writing, however, the share price had fallen slightly to 83 cents. This is still 18.57% higher than the previous close.

    Today’s massive price gain comes as the company announced its “world first solar greenhouse” had officially opened.

    Compared to the ClearVue share price, the S&P/ASX All Ordinaries Index (ASX: XAO) is only 0.23% higher.

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

    What’s affecting the ClearVue share price?

    In a statement to the ASX, ClearVue declared the opening of its solar powered greenhouse in Perth, Western Australia.

    The greenhouse, which is located within the campus of Murdoch University, was built using ClearVue Technologies “smart building materials.” The facility will be used for developing new plant breeding technologies and integrating them to produce commercial crop varieties.

    The company will conduct its own research on the building’s energy generation and energy efficiency performances. Investors appear to be buying into the research, with today’s strong performance of the ClearVue share price.

    According to the statement, the new greenhouse uses a range of sensors that record and present data in real-time. This provides scientists with accurate information about temperature, humidity and the actual amount of light that plants are receiving. This information is then analysed to make real-time adjustments to settings inside the greenhouse, like temperature and lighting.

    Management commentary

    ClearVue Executive Chair, Victor Rosenberg, said

    ClearVue is truly excited to finally be able to show to the World ClearVue’s truly world leading product being used in this agricultural application – just one of the wide range of applications the ClearVue technology and products can be used for.

    Estimates indicate the world’s arable land has reduced by one third in the past 40 years. By 2050, two thirds of the world’s population is predicted to be urbanised, which will further impact the availability of land for agricultural production.

    We are confident that the ability to control the microclimate within the ClearVue greenhouse will create an optimum growing environment to achieve higher yields. Leafy plants require protection from harmful UV rays in the same way humans need to protect their skin. Plants do this naturally by producing a waxy substance that shields them from harmful UV rays.

    The ClearVue IGU glazing blocks these UV rays, so the energy required by plants to create the protective layer on leafy vegetables can be preserved to growing bigger, tastier, fresher produce which leads to improved yields and quality of produce.

    ClearVue share price snapshot

    Over the past 12 months, the ClearVue share price has increased an amazing 676.2%. Just in the last month, the company’s value has increased 93%!

    Given its current valuation, ClearVue has a market capitalisation of $122.9 million.

    Where to invest $1,000 right now

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    Motley Fool contributor Marc Sidarous 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.

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  • Why has the Yojee (ASX:YOJ) share price surged 6% today?

    child in superman outfit pointing skyward, indicating a rising share price

    The Yojee Ltd (ASX: YOJ) share price is rising today after the company released its quarterly activity report.

    The Yojee share price is up 6.67% at the time of writing, trading at 16 cents per share.

    Yojee delivers logistics and supply-chain management capabilities via its blockchain and artificial intelligence (AI) software to Southeast Asia and Australia.

    The company is a cloud-based Software-as-a-Service (SaaS) logistics platform that manages, tracks and optimises freight movements throughout the logistics chain, from sender to end customer. It crosses borders and between logistics providers (land, sea, air), with subcontractors for multi-leg journeys.

    In essence, it’s a software company that brings the management of trucking fleets into the digital age.

    Inside Yojee’s quarterly report

    Yojee’s March-quarter FY2021 activity report is focused on the company’s record growth and the expansion of its regional network. 

    The company has achieved record growth in revenues from ordinary activities of 36% and cash receipts of 42% for the March-ended third quarter of FY2021.

    The company’s recent expansion of its global logistics pipeline is beginning to bring in revenue. Yojee noted that its six Enterprise Client Logistics Hubs (with global top 10 freight forwarders) across five different countries are now generating revenue.

    Two further hubs are currently undergoing platform implementation across two countries. 

    87 trucking companies across the Asia Pacific region have adopted Yojee’s software during the quarter, which the company says creates “huge potential for further buildout”. 

    Yojee reports a strong cash runway with AU$19.8 million in its bank at 31 March 2021. It’s currently in discussions with existing and new enterprise clients for Yojee to expand its presence across the supply chain in the Asia Pacific region and beyond.

    It says that significant progress has been made laying the foundations for its future growth, and it expects another record quarter looking forward.

    Yojee share price snapshot

    Yojee’s strong revenue increases quarter-on-quarter in FY21, combined with its bullish expectations for future growth, have been pushing its share price higher in the past week. Broker recommendations have also assisted these gains.

    The Yojee share price is up 6.9% this month but is down 22% in 2021 so far. Overall, it’s up 355% over the past 12 months.

    Where to invest $1,000 right now

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

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    Motley Fool contributor Lucas Radbourne-Pugh 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.

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  • Why Eagers Auto, Orocobre, Sims, & Titomic shares are storming higher

    Red rocket and arrow boosting up a share price chart

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a gain. At the time of writing, the benchmark index is up 0.2% to 7,078.3 points.

    Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

    Eagers Automotive Ltd (ASX: APE)

    The Eagers Automotive share price has climbed 4% to $16.21. Investors have been buying the auto retailer’s shares after Morgan Stanley responded positively to its recent trading update. The broker notes that Eagers Automotive is trading well-ahead of expectations so far in FY 2021. In addition, the broker believes it is well-placed to be a much more profitable company in the future. Morgan Stanley has retained its overweight rating and lifted its price target to $18.00.

    Orocobre Limited (ASX: ORE)

    The Orocobre share price has jumped 5% to $6.50. Investors have been scrambling to buy its shares after it announced a merger with fellow lithium producer Galaxy Resources Limited (ASX: GXY). The company notes that the merger will create the fifth largest global lithium chemicals company with a diversified production base and exciting growth platform. The Galaxy share price is rising on the news as well.

    Sims Ltd (ASX: SGM)

    The Sims share price has surged 10% higher to $16.78. The scrap metal company’s shares were given a boost today from the release of a trading update. According to the release, Sims is expecting to achieve underlying earnings before interest and tax (EBIT) of around $260 million to $310 million in FY 2021. This compares to an underlying loss before interest and tax of $57.9 million in FY 2020 and underlying EBIT of $230.3 million in FY 2019.

    Titomic Ltd (ASX: TTT)

    The Titomic share price has risen almost 6% to 55.5 cents. This morning the digital manufacturing solutions provider announced an agreement to acquire the assets of US-based Tri-D Dynamics. It is a Silicon Valley-based design and manufacturing company developing smart pipe infrastructure for the 21st-century economy. Tri-D Dynamics aims to upgrade and electrify infrastructure by embedding electronics directly into metal structures to outfit them with digitally connected technology.

    Where to invest $1,000 right now

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

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

    *Returns as of February 15th 2021

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    Motley Fool contributor James Mickleboro owns shares of Galaxy Resources 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.

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  • Smartpay (ASX:SMP) share price lifts on fourth quarter trading update

    jump in asx share price represented by man jumping in the air in celebration

    The Smartpay Holdings Ltd (ASX: SMP) share price has jumped in afternoon trade after the payment technology company released its trading update for the fourth quarter.

    At the time of writing, the Smartpay share price is trading at 92.5 cents a share, an increase of 4.5%.

    High growth story continues

    It appears the payment solution providers’ trading update has fallen roughly in line with shareholder expectations. Despite the continuation of growth metrics, the Smartpay share price has failed to gain momentum.

    The company’s fourth quarter, ending 31 March, experienced continued growth in Australian acquiring revenues. Smartpay delivered a 97% year-on-year revenue increase to $5.784 million – a further 15% increase on the previous quarter.

    Additionally, Smartpay’s transacting terminals reached record levels. At the end of March, the company’s payment terminals in use reached 6,754 – up from 5,775 from the previous quarter.

    Total quarterly revenue for the company came in at NZ$10.05 million on a consolidated basis for both Australia and New Zealand operations. This reflects an increase of 36% year-on-year for the business.

    Potentially disappointing shareholders, the company did not indicate growth in its New Zealand operations. Instead, Smartpay stated, “Our New Zealand business provided stable and consistent revenue contribution through the quarter.”

    Context is important for Smartpay share price

    Smartpay is a much smaller peer of ASX-listed Tyro Payments Ltd (ASX: TYR). Comparing the two competitors we can see how Smartpay is stacking up.

    Based on current metrics, Tyro is generating roughly 7.1 times more revenue than its smaller contender. However, the company is utilising 10.1 times more transacting terminals than Smartpay to do so, at 68,338.

    Adding to this, despite only accruing sevenfold the revenue, Tyro is valued at 9.7 times the market capitalisation of Smartpay. This might explain why the returns from the Smartpay share price have outpaced its bigger competitor over the last year (108% versus 38.6%).

    The market might be imposing a discount on the smaller terminal provider, given the heightened risk profile. This risk was displayed during the COVID-19 crash, as the Smartpay share price fell dramatically 64% in one month.

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  • Tesla settles lawsuit with ex-employee over autopilot source code

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    red car on a road with hills in the background

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

    Tesla Motors (NASDAQ: TSLA) is moving past a legal dispute it got into with one of its former engineers. The company settled a lawsuit it brought in 2019 against Cao Guangzhi, accusing him of copying the source code of its Autopilot assisted driving software platform. Tesla had alleged Cao had done so before joining XMotors, the U.S. business of China-based autonomous-driving company Xpeng (NYSE: XPEV).

    Under the terms of the settlement, Cao will financially compensate Tesla for his actions. The precise amount has not been disclosed.

    Autopilot is a high-profile feature in Tesla automobiles. Although the name implies an autonomous driving system, Autopilot is actually a set of assisted-driving solutions including next-generation cruise control and parking assist. The company has intimated that, in time, Autopilot will include self-driving functionalities.

    Tesla has not commented on its settlement with Cao. The former employee’s legal representative, in a statement sent to Reuters, claimed that Cao did not provide any Tesla data to Xpeng or any other entity. In addition, said the representative, Cao didn’t personally access any of Tesla’s information.

    The news agency added that XMotors “said it respected intellectual property rights and relied on its in-house developed proprietary R&D and intellectual property.” XMotors was not a party in the lawsuit brought by Tesla. Cao is no longer employed at the Chinese company.

    Although this can’t be considered a major legal issue — and therefore a big victory — for Tesla, it is an encouraging sign that the company is ready and able to vigorously defend its business. Autopilot is an attractive feature that helps draw customers, and as such it’s worth protecting.

    This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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    Eric Volkman 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 Tesla. 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.

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