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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is a sea of red following a broad market selloff. Rising bond yields have spooked investors, leading to the benchmark index falling 2.3% to 6,678.7 points.

Here’s what is happening on the market today:

Afterpay returns and tumbles lower

The Afterpay Ltd (ASX: APT) share price has returned from its trading halt and tumbled lower. This morning the payments company announced the completion of an upsized convertible notes offering which raised $1.5 billion. These notes are due in 2026 and are convertible into fully paid ordinary shares with an initial conversion price of $194.82. This represents a 45% premium to the Afterpay share price prior to the trading halt. The funds will be used to increase its interest in its US business and support its growth.

AMP joint venture with Ares

The AMP Ltd (ASX: AMP) share price has avoided the selloff and is pushing higher on Friday. The catalyst for this was the financial services company announcing a potential joint venture with Ares Management. The two companies have signed a non-binding Heads of Agreement to form a $2.25 billion joint venture which will see Ares inject up to $1.55 billion in cash into AMP.

Kogan half year results

The Kogan.com Ltd (ASX: KGN) share price is also tumbling lower today. Investors have been selling its shares after the market selloff overshadowed a strong half year result. For the six months ended 31 December, Kogan reported a 97.4% increase in gross sales to $638.2 million and a 250.2% jump in adjusted net profit after tax to $36.5 million. This was driven by a 76.8% increase in Kogan active customers to 3 million and strong sales growth by its Exclusive Brands and Kogan Marketplace segments.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the AMP share price with a 4% gain. This follows its joint venture announcement. The worst performer has been the Orica Ltd (ASX: ORI) share price with a 20% decline. This morning the company warned that a number of factors were weighing on its performance. Combined these are expected to impact its pre-tax earnings by up to $125 million.

More reading

• The Harvey Norman (ASX:HVN) share price slips despite soaring profits
• Why AMP, Bubs, BWX, & Lynas shares are pushing higher
• Hansen Technologies (ASX:HSN) share price rises on profit surge
• Will Wall Street’s overnight tumble send ASX 200 shares down today?
• Why the Afterpay (ASX:APT) share price is sinking 14% today

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 Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 down 2.3%: Afterpay & Kogan sold off, Orica smashed, AMP pushes higher appeared first on The Motley Fool Australia.

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The Harvey Norman Holdings Ltd (ASX: HVN) share price is slipping today, down 4.15% to $5.08 in morning trade.

We take a look at Harvey Norman’s results for the financial half year ending 31 December (H1 FY21) below.

What did Harvey Norman report for the half year?

The Harvey Norman share price is sliding today despite reporting soaring profits and announcing a record dividend payment. Perhaps caught up in the wider selloff on the S&P/ASX 200 Index (ASX: XJO) today?

The international ASX retailer reported total revenue for the half-year of $5.2 billion, up 25.8% from the prior corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) leapt 76% year-on-year to $779.8 million.

Net profit after tax and non-controlling interests came in at $462.0 million, an increase of 116% from the $213.6 million reported in H1 FY20. Profit before tax soared 114% year-on-year, to $643.9 million.

Earnings per share (EPS) also more than doubled, up 109.5% to 37.08 cents.

Harvey Norman’s net assets increased 13.9% to $3.74 billion. The company had a net cash position of $21.8 million compared to a net debt position of $553.2 million at the end of H1 FY20.

Management notes

Commenting on the results, Harvey Norman chair Gerry Harvey said:

The solid results delivered this half is a testament to the strength and resilience of the integrated retail, franchise, property and digital strategy and its ability to adapt and transform to the changing retail landscape and continue to navigate the uncertainties presented by COVID-19…

The robust cash flows generated from operating activities of over $391 million dollars this half year has enabled us to invest in our businesses and paydown external debt. At 31 December 2020, the consolidated entity had $499 million of unused, available financing facilities, and is well-placed to respond to challenges and capitalise on opportunities as they arise.

The company noted that the early months of H2 FY21 are seeing continuing strength in sales revenue. From 1 January through to 23 February, aggregated sales revenue grew 21% compared to the same time frame in 2020.

Harvey Norman declared an interim dividend of 20 cents, fully franked, the biggest interim dividend it’s ever paid.

Harvey Norman share price snapshot

Over the past 12 months, Harvey Norman shares have gained 18%. The ASX retailer came roaring back from the past COVID sell-off, with shares up 108% since the 23 March lows.

Year-to-date, the Harvey Norman share price is up 7%.

More reading

• ASX 200 down 2.3%: Afterpay & Kogan sold off, Orica smashed, AMP pushes higher
• Hansen Technologies (ASX:HSN) share price rises on profit surge
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.8%, A2 Milk sinks, Zip drops
• WPP Aunz (ASX:WPP) share price dips on 32% profit drop

Motley Fool contributor Bernd Struben 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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Nuix Ltd (ASX: NXL) shares are getting smashed today after the company reported its first results since its initial public offering (IPO). At the time of writing, the Nuix share price has plummeted an eye-watering 27.31% to $6.52.

Let’s take a look at how the analytics software company has been performing.

What’s pushing the Nuix share price lower?

Investors are driving the Nuix share price lower today after the company released its inaugural results since listing on the ASX late last year.  

For the six months ending 31 December, Nuix announced a 4% decline in revenue to $85.3 million. Overall, the software solutions company reported a statutory net loss of $16.6 million. However, on a proforma basis Nuix reported a net profit after tax (NPAT) of $9.4 million.

Nuix noted that profit margins for the period increased, with software licences generating 98% of revenue for the first half.

The company also highlighted its commitment to continued investment in research and development. Nuix noted that 26% of revenue from the first half of FY21 was spent on product enhancements.

Despite dour financial highlights, Nuix flagged increasing customer numbers. For the first half of FY21, the company saw a 17% increase in new business. In addition, Nuix also reported larger dollar value deals were completed.

CEO of Nuix Mr Rod Vawdrey noted that the results demonstrated “the stickiness” of the business’ customer base.

Nuix also highlighted its strong capital position with $103 million cash on hand.

Outlook

Nuix is a provider of investigative analytics and intelligence software. The company’s Discover, Workstation, and Investigate platforms help users convert data from emails, social media and communications into actionable intelligence. Nuix currently licences its software to more than 1,000 customers across 78 countries.

Unlike many other companies this reporting season, Nuix also provided guidance for the full year. For FY21, the company forecast a full-year revenue target of $193.5 million and pro forma earnings of $63.6 million.

Nuix noted that it expects a strong 2021, fuelled by “exponential growth in data and regulatory compliance”.

Investors were quick to sell their shares following the company’s release today, with the Nuix share price hitting an intraday and all-time low of $6.42 in morning trade. Based on the current Nuix share price, the company has a market capitalisation of around $2.8 billion.

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

The post Here’s why the Nuix (ASX:NXL) share price is tanking 27% appeared first on The Motley Fool Australia.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a hugely disappointing note. At the time of writing, the benchmark index is down 2.35% to 6,673.3 points.

Four ASX shares that have defied the selloff are listed below. Here’s why they are pushing higher:

AMP Ltd (ASX: AMP)

The AMP share price is up over 3.5% to $1.45. Investors have been buying the financial services company’s shares after it announced a potential joint venture with Ares Management. The two companies have signed a non-binding Heads of Agreement to form a $2.25 billion joint venture which will see Ares inject up to $1.55 billion in cash into AMP.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price has pushed 4% higher to 57.2 cents following its half year results release. The infant formula company reported a 33% decline in revenue to $18.3 million and a loss before tax of $17.1 million.  It appears as though investors were expecting an even worse result. Looking ahead, Bubs is expecting a modest improvement in the second half compared to the first.

BWX Ltd (ASX: BWX)

The BWX share price has jumped 11.5% to $4.48 after reporting its half year results this morning. The personal care products company reported a 0.6% increase in revenue to $84.5 million and a 133.1% jump in net profit after tax to $9.9 million. However, it is worth noting that its profit was boosted by a one-off benefit of $5.8 million. This relates to the final consideration payable under the Egide Compensation Plan to the sellers of the Andalou Naturals business.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price is up 2% to $5.78. Investors have been buying the rare earths producer’s shares after it reported a surge in first half profits. For the six months ended 31 December, Lynas reported a 12.4% increase in revenue to $202.5 million and an 82% jump in EBITDA to $80.6 million. Management also spoke positively about the future, commenting that “Lynas has a unique position in an exciting market.”

More reading

• Lynas (ASX:LYC) share price dips despite posting 944% increase in net profits
• Will Wall Street’s overnight tumble send ASX 200 shares down today?
• BWX (ASX:BWX) share price jumps 11% as profits glow
• AMP (ASX:AMP) share price on watch with proposed $2.3bn joint venture
• Why the Afterpay (ASX: APT) share price is down 8% today

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 BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia has recommended BUBS AUST FPO. 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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The Betmakers Technology Group Ltd (ASX: BET) share price has dropped 6.11% this morning following the release of the company’s half-year (1H21) results.

At the time of writing, the Betmakers share price is trading at 84 cents a share.

Here’s the rundown on how the betting technology company has performed in the 6-month period ended 31 December 2020.

Betmakers half-year performance wrap

In today’s release, Betmakers reported a $7.6 million revenue for 1H21, an 88% gain on the previous corresponding period.

The company – which provides data analytics and content for bookmakers globally and distributes racing content – posted a 1H21 loss of $4.4 million. This is 697% higher than its loss of $556,000 in 1H20.

Betmakers advised that the loss included $3 million of share-based payments and about $831,000 in expenses related to acquisitions.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was negative $1.7 million.

However, it wasn’t all bad news, with 1H21 net assets soaring to $90.1 million from $6.5 million in the pcp. 

Earnings per share (EPS) leapt from 13 cents a share in 1H20 to 75 cents, and total assets as of 31 December 2020 came in at $81.6 million, up from $33.7 million.

Betmakers finished the period with cash and cash equivalents totalling $68.6 million, a booming number compared to the $2.7 million held at the end of the pcp.

Outlook

The business advised that its acquisition of Sportech’s tote and digital assets is on track. Betmakers expects to complete the acquisition during the next financial quarter.

The company said the tote and digital business combined with BetMakers’ existing operations would have delivered $56.1 million revenue and $7.7 million EBITDA for the period.

When the deal is complete, 36 states in the United States will have access to the company’s technology.

Betmakers is also pursuing new opportunities in the US state of New Jersey as well as other growth acceleration activities.

Betmakers share price snapshot

Over the past year, the Betmakers share price has gained 150% and climbed 34.3% year-to-date.

The company’s market capitalisation is currently $614.4 million, and 773.5 million shares are outstanding.

More reading

• Why is the Betmakers (ASX: BET) share price down 5.4%?
• Here’s why the Betmakers (ASX:BET) share price is soaring
• Betmakers (ASX:BET) share price jumps 9% to touch 52-week high

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group Ltd. 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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The Hansen Technologies Limited (ASX: HSN) share price is on the rise today, up 2.27% at the time of writing to $4.06 a share. That’s especially impressive when you consider that the broader S&P/ASX 200 Index (ASX: XJO) is taking a pretty big tumble today and is currently down 2.41%.

The catalyst for Hansen’s move to the upside appears to be its earnings report for the first half of the 2021 financial year (1H21), posted to the ASX after market close yesterday afternoon.

What kind of results did Hansen deliver?

It was a sea of green from Hansen in 1H21. The company reported that revenues came in at $147.1 million, a 2% bump on the prior corresponding period (1H20). That’s on a constant currency basis (reported revenue was $142.2 million).

That helped the company post underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $54.3 million on a constant currency basis, a 44% increase on 1H20. That represents an EBITDA margin of 36.9%. Reported EBITDA was $52.3 million, which helped push net profits after tax (excluding tax-affected amortisation) up 77% to $31.6 million on a constant currency basis (or $29.6 million reported).

It also helped to push down Hansen’s net debt by 18%, which is now down $20.7 million over the half to $95.8 million.

Earnings per share (EPS) also rose 77% to 15.9 cents per share on constant currency (14.9 cents reported).

Due to the surge in profits, Hansen has declared an interim dividend of 5 cents per share, up 67% on the prior period. The dividend represents a payout ratio of 31% of earnings per share and is equal to the company’s final dividend for 2H20, although it doesn’t come with the addition of a 2 cents per share special dividend that we saw for that period last year. It also only comes 22% franked.

On an annualised basis, that dividend would give Hansen shares a forward dividend yield of 2.46%. The board stated that, “having considered Hansen’s capital requirements, strong capital structure and liquidity position, the Board has determined an increased interim dividend to return money to shareholders is appropriate.”

Looking forward

Hansen has also upgraded its guidance for the 2021 financial year. The board expects revenues to come in between $295–305 million on a constant currency basis for the financial year (or $285–295 million reported), and underlying EBITDA margins of between 33-35%.

Hansen CEO Andrew Hansen had this to say on the results overall:

The 1H21 result was a great outcome for Hansen across all key metrics, continuing our strong performance through the global pandemic. We have grown revenues 1.9% on a constant currency basis, driven a strong increase in profitability leading to a record half-year EBITDA while investing in our business to position Hansen Technologies for a ‘COVID-normal’ world… This result proves the long-term resilience of our business modelof growing revenues and EBITDA over the long-term by investing in both our technology and the value accretive aggregation of strategically targeted businesses.

Judging by today’s move in the Hansen share price, it seems investors concur.

More reading

• 5 things to watch on the ASX 200 on Friday
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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. 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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The Galaxy Resources Limited (ASX: GXY) share price has been caught up in the market selloff on Friday.

At the time of writing, the lithium miner’s shares are down 4% to $2.57.

Why is the Galaxy share price tumbling lower?

It appears as though the broad market selloff today has overshadowed the release of Galaxy’s full year results which revealed big improvements in trading conditions.

For the 12 months ended 31 December, Galaxy reported annual production of 108,658 dry metric tonnes (dmt) at 5.95% Li2O. This means the company achieved its full year guidance for FY 2020.

However, with its cash cost per tonne increasing 14% to US$447 and the average realised selling price at US$352 per tonne, Galaxy recorded another sizeable (but narrowing) loss.

For FY 2020, the company reported revenue of US$55.3 million and a loss after tax of US$31.3 million.

This left Galaxy with cash and financial assets of US$215.1 million and no debt at the end of the period. Management believes this is sufficient to advance both its growth projects.

Management commentary

Galaxy’s CEO, Simon Hay commented: “Galaxy experienced challenging market conditions throughout most of 2020 and posted a net loss after tax for the year of US$6.3 million, excluding mid-year inventory write down and impairments of US$25.0 million. Revenue in FY2020 was adversely impacted by the realised selling price for spodumene being 30% below FY2019 levels.”

“Pleasingly, Mt Cattlin’s unit cash cost of production reduced in H2 despite an increase in the exchange rate. The cash used in operations of US$6.3 million was US$29.0 million lower than FY2019 due to stringent cost control and the moderated operational settings implemented at Mt Cattlin at the beginning of 2020.”

What about the future?

Positively, FY 2021 looks set to be a better year for the company thanks to rising lithium prices. This could bode well for the Galaxy share price when the market volatility eases.

Management advised that its Mt Cattlin is ramping up production in response to strong customer demand, improving prices, and reduced inventory levels.

Furthermore, first quarter shipments of 45,000 dmt are contracted at “materially higher prices.”

More reading

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• Here’s why the Galaxy Resources (ASX:GXY) share price is dropping lower

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.

The post Why the Galaxy Resources (ASX:GXY) share price is tumbling lower today appeared first on The Motley Fool Australia.

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

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

Robinhood is not taking a blast of recent high-profile criticism lying down.

A day after Charlie Munger, vice chairman of the Warren Buffet-led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), sharply criticized the securities trading platform and its ilk, Robinhood hit back on Thursday.

“In one fell swoop an entire new generation of investors has been criticized and this commentary overlooks the cultural shift that is taking place in our nation today,” the company wrote in a pair of tweets and in an official statement.

It added that, “To suggest that new investors have a ‘mindset of racetrack bettors’ is disappointing and elitist.”

Robinhood is referring to Munger’s remark that the Robinhoods of this world have promulgated “a culture which encourages as much gambling in stocks by people who have the mindset of racetrack bettors.”

“It’s a dirty way of making money,” he added.

Munger, who was instrumental in the establishment of Berkshire Hathaway and is constantly referred to by Buffett as the famed investor’s partner, made the remarks during the latest annual meeting of the Daily Journal. Munger is the media company’s chairman.

Robinhood has come under scrutiny for its conduct during the recent high-profile bull run of GameStop Corp (NYSE: GME) shares. Munger believes that modern, zero-commission trading platforms like Robinhood basically encourage reckless momentum trading by unseasoned investors.

The investing world seems divided between Robinhood supporters and those who hew more toward Munger’s opinion. On Thursday, noted investor and pundit Jim Cramer tweeted that: “The attack on the Robinhood generation by someone who I respect is painful. I have watched young people get involved with stocks and put them away and show great promise. Insulting.”

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 Berkshire Hathaway (B shares) and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Pengana Capital Group Ltd (ASX: PCG) share price is under the spotlight today after the fund manager announced its FY21 half-year result and a big dividend increase.

Pengana’s FY21 half-year result

The fund manager announced that its funds under management (FUM) grew by 15%, ending at $3.59 billion in December 2020. The investment performance contributed $463 million and it saw positive net inflows of $81 million. However, distributions were a negative impact of $80 million.

Management fee revenue increased by 1.6% to $17.7 million. Pengana said the benefit of higher FUM at the period end will be reflected in the second half of the year. Performance fee revenue jumped 88.9% to $10.3 million. Net fund direct expenses improved 21.4% to $1.4 million as the business focused on reducing expenses.

The fund manager said that its funds achieved strong investment performance, with all strategies outperforming respective benchmarks for the period.

The management fee margin decreased to 1.15%, down from 1.21% in FY20. The total fee margin rose to 1.87% including the performance fees.

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 30.2% to $8.25 million. Underlying profit before tax grew by 17% to $9.2 million. Underlying earnings per share (EPS) went up 13% to 5.96 cents.

However, statutory profit declined slightly to $3.17 million and statutory EPS dropped to 3.79 cents.

Dividend declared

Pengana announced an interim dividend of 5 cents per share, which was an increase of 25% compared to the prior corresponding period.

Pengana share price movements

Over the last year the Pengana share price has risen 34%. However, over the last six months the Pengana share price has gone up 68%.

CEO commentary

The Pengana managing director and CEO Russel Pillemer said:

Admist a highly volatile macro environment navigating around the uncertainty of vaccine trials, US election jitters, Brexit fallout and deteriorating China-US relations, all the major Pengana strategies delivered strong absolute and relative returns in the period, outperforming their respective benchmarks.

The trend towards higher margin products highlighted in our last annual report continues, as well as our increase in international equity products which comprised 53% of FUM at 31 December 2020.

Pengana’s outlook

The fund manager said that whilst the period had a high level of uncertainty and volatility in the global landscape, its strategic focus is always on the long-term growth and success of the company. Pengana believes it’s this focus on the long-term that led to the strong result in the period.

Mr Pillemer concluded:

The foundational steps we have taken in the last few years have been designed to build a platform for future growth and I have never been more confident; particularly as I am surrounded by talented people at all levels at Pengana, our product offering has never been more diverse and our ability to service and interact with our investors on a personal and digital level has never been better.

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The Electro Optic Systems Hldg Ltd (ASX: EOS) share price has struggled to make headway since the COVID-19 sell-off back in March 2020. 

Why the Electro Optic share price is struggling 

COVID-19 has deferred revenues for the aerospace and defence business into 2021 and 2022 as delivery schedules are pushed out.

While the company will realise these revenues in the future, indirect costs will be expensed in the present, creating a short term negative impact on profitability.

This has been a consistent challenge for the business, as indicated in its 1H20 results in August 2020 and FY20 results released today. 

FY20 performance highlights 

Electro Optic delivered a 9% increase in revenue to $180 million, citing constraints driven by COVID-19 interruptions to deliveries.

Deferred revenues and profits resulted in a net loss after tax of $25.6 million. At the same time, investment into inventory saw a negative operating cash flow of $109 million. 

Defence is Electro Optic’s largest revenue segment, responsible for more than 80% of its revenues in FY20. This segment produces products such as remotely operated weapon stations, sensors and fire control software. 

Delivery issues throughout the year and in December prevented delivery to the contract schedule resulting in $40 million of revenue being pushed into 2021. As a result, the defence segment experienced a 1% decline in revenues but expects 2021 to see a return to profitability. 

The company’s communications and space systems segments are small revenue contributors that have experienced strong growth throughout the challenging period. 

The communications systems segment develops and provides global satellite communication, products and services.  This segment saw revenues surge from $1.9 million in FY19 to $19.6 million in FY20, driven by the full-year effect of its EM Solutions acquisition. 

Its space systems segment is growing strongly and profitability, with a 27% increase in revenues to $6.4 million. This segment focuses on the detection of objects in space and currently completing a new type of laser tracker using radiation pressure to move space debris. 

Foolish takeaway

The Electro Optic share price has sunk 5.35% to a 9-month low of $4.60 at the time of writing. The company expects a return to profitability in the short term as revenues are realised, and defence inventory is converted back into cash. 

Management believes the company’s growth story is still intact with global tailwinds to drive pipeline and conversion to its order backlog in 2021 and beyond. 

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Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings 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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