Tag: Motley Fool

  • Why the IOUpay (ASX:IOU) share price crashed 13% lower today

    A man peers into the camera looking astonished, indicating a rise or drop in ASX share price

    It was another very disappointing day of trade for the IOUpay Ltd (ASX: IOU) share price on Monday.

    The Malaysia-based buy now pay later (BNPL) provider’s shares ended the day 13% lower at 53.5 cents.

    This means the IOUpay share price has now fallen 37% since peaking at a record high of 85 cents last Monday.

    Why is the IOUpay share price under pressure?

    Investors have been selling IOUpay’s shares since its surprise and opportunistic $50 million placement last week.

    The placement saw sophisticated and institutional investors offered 100 million shares at 50 cents per share. This represented a 28.6% discount to its last close price at the time of 70 cents.

    According to the release, the proceeds will be used for growth initiatives including digital payments and to accelerate new business development opportunities in the BNPL sector in South East Asia.

    IOUpay’s Chairman, Aaron Lee, explained: “The Company is delighted to see the market respond so strongly to our plans to accelerate our market position as a leading operator in the digital payments and BNPL sectors in South East Asia.”

    “This capital raising represents another important milestone in our roadmap to expand our existing and new product offerings and accelerate the growth potential of that expansion. We welcome all new shareholders and thank our existing shareholders for their continued support for this exciting new next chapter of IOU which combined with existing cash reserves provides us with a strong capital platform to execute our market validated business plan,” he concluded.

    Is IOUpay the real deal?

    At this stage it is too early to know whether IOUpay is the real deal. The company has only just launched its offering and has yet to report back on how that is progressing.

    In addition to this, the company could soon have competition from Afterpay Ltd (ASX: APT). Last year it acquired Singapore-based but Indonesia-focused BNPL company EmpatKali.

    If Afterpay decides to expand properly into the region, it seems only logical that Malaysia will be on its list eventually.

    IOUpay shareholders will no doubt be hoping the company can gain a foothold before that happens.

    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 has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T 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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  • 2 of the best ASX 200 blue chip shares to buy

    asx buy

    The illustrious S&P/ASX 200 Index (ASX: XJO) is home to a good number of shares with true blue chip status. So many, in fact, it can be hard to decide which ones to include in your portfolio.

    In order to narrow things down, I have picked out two blue chip ASX 200 shares which are highly rated right now. They are as follows:

    CSL Limited (ASX: CSL)

    The first ASX 200 blue chip share to look at is CSL. It is one of the world’s leading biotechnology companies, responsible for the CSL Behring and Seqirus businesses.

    Last week the company released its half year results and revealed a 16.9% increase in revenue to US$5,739 million and a massive 45% jump in net profit after tax to US$1,810 million. This was driven by a surge in flu vaccine sales, the successful transition to its own distribution model in China, and solid demand for immunoglobulins and HAEGARDA.

    Disappointingly, despite this incredible profit growth, management only held firm with its guidance for FY 2021 net profit after tax of US$2,170 million to US$2,265 million in constant currency. This represents year on year growth of just 3% to 8% and implies a sharp profit decline in the second half.

    While this is disappointing, the pullback in the CSL share price appears to have left it trading at a very attractive level for a long term focused investor.

    For example, in response to its results, analysts at UBS retained their buy rating but trimmed their price target slightly to $330.00. This compares to the current CSL share price of $267.79.

    REA Group Limited (ASX: REA)

    Another ASX 200 blue chip ASX share to look at is property listings company REA Group. After successfully battling through a tough period because of the pandemic, things are looking incredibly rosy for the company now.

    In fact, REA Group just revealed a return to growth in the first half of FY 2021 thanks to its excellent cost control which offset softer revenues.

    For the six months ended 31 December, the company reported a 2% decline in revenue to $430.4 million. But thanks to a 13% reduction in operating expenses to $145.8 million, REA Group reported a 9% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $290.2 million.

    Pleasingly, with the housing market improving, mortgage loan growth accelerating, and house prices tipped to rise strongly in 2021, listing volumes look set to rise strongly over the next 12 months. Thanks to this, its lower costs, potential price increases, and new revenue streams, this could lead to an acceleration in its profit growth.

    One broker that is positive on REA Group is Morgan Stanley. It has an overweight rating and $175.00 price target on its shares. This compares to the latest REA Group share price of $150.56.

    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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    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 CSL Ltd. The Motley Fool Australia has recommended REA Group 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 the Oventus Medical (ASX:OVN) share price is up 7%

    hand on touch screen lit up by a share price chart moving higher

    The Oventus Medical Ltd (ASX: OVN) share price moved higher today, jumping 7.32% to 22 cents a share at the time of writing.

    The Oventus share price was sent flying after the medical device company released its half-year results for the period ended 31 December 2020  (1H FY21). 

    Oventus reports strong financial results

    The company reported a 192% increase in booked revenue compared to the prior corresponding period (pcp), with booked revenues coming in at $550,000 for the 1H FY21 period.

    Cash receipts totalled $415,000, which was a 109% increase over the pcp.  

    Oventus held $4.8 million in cash and cash equivalents at the end of the period. This compares to $6.2 million at the end of the pcp.

    The company reported a loss for the first half, totalling $4.7 million. This is an improvement compared to the loss reported for the six months ended 31 December 2019, which was $5.1 million.

    Overall, Oventus has accumulated losses of $37.3 million. However, the business notes that as of 31 December 2020, its current assets exceed its current liabilities by approximately $3.6 million.

    A government stimulus of $265,243 was granted to the company during 1H FY21 to help it maintain staffing levels in Australia and Canada during the coronavirus pandemic.

    CEO Commentary

    Oventus founder and CEO, Dr Chris Hart commented on the company’s performance: 

    We are very pleased with how our Lab in Lab model has performed through what has been one of the most volatile and unprecedented respiratory pandemics in history. Despite the significant hampering of footfall across North America, we’ve still managed to grow device sales by 143% when compared to the same period last year.

    Looking ahead, he added:

    Based on what we currently know and correlated with a drop in the rate of infection, we see an improved outlook for physical patient appointments in North America. To protect ourselves against further volatility, our homecare extension of Lab in Lab has been elevated and we’ve just launched a new direct to consumer site, goPAPfree.com, where patients in North America can access treatment completely virtually.

    This fully virtual model is the same one that is being made available to VGM’s member-base. While it’s a nascent part of our business, with very low patient acquisition costs, no CAPEX, higher margins and no physical barriers, we expect the homecare model to become a very exciting part of our strategy.

    Oventus share price snapshot

    Oventus is a medical device company focused on treating sleep apnoea and snoring. 

    The company’s market capitalisation is $32.4 million. There are 158.3 million shares outstanding.

    The Oventus share price is up by 4% in 2021, but has fallen 68.7% over the past year

    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 Gretchen Kennedy 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 the Genetic Signatures (ASX:GSS) share price surged 10% higher today

    covid asx share price represented by man in face mask giving thumbs up

    The Genetic Signatures Ltd (ASX: GSS) share price was on form on Monday.

    At one stage the molecular diagnostics company’s shares were up as much as 10% to $1.83.

    The Genetic Signatures share price ultimately closed the day 6% higher at $1.75.

    Why did the Genetic Signatures share price surge higher?

    The catalyst for the strong rise in the Genetic Signatures share price today was the release of its half year results. Those results revealed record sales and its maiden profit.

    For the six months ended 31 December, the company reported a whopping 638% increase in revenue to $18.7 million. This was driven by exceptionally strong demand for its EasyScreen SARS-CoV-2 (COVID-19) Detection Kit globally.

    Thanks to its strong sales growth and improvements in its gross margin due to a higher average selling price, Genetic Signatures reported its first significant profit of $4.5 million for the half. This compares to a net loss of $2.35 million in the prior corresponding period.

    Positively, the company was cash flow positive in both quarters. It generated $5.2 million overall and $7.8 million in positive operating cashflow. This includes a $2.6 million refund from the ATO in relation to the Research and Development (R&D) tax incentive program. However, it is worth noting that management doesn’t expect to qualify for this refund next year as its sales are likely to exceed the $20 million threshold.

    At the end of the half, the company had a cash balance of $36.3 million and no debt.

    Outlook

    No guidance has been provided for the full year. However, management spoke positively about demand for its products.

    It commented: “COVID-19 testing is expected to continue for the foreseeable future even with the rollout of the various vaccines around the world, and this is expected to benefit Genetic Signatures, though the Company is unable to determine whether testing volumes will change and/or by what proportion.”

    “As new variants of the virus are detected it is unclear if the vaccines will be effective against them nor how transmissible the variants will be. Our platform technology, 3base is less susceptible to these variants and the company has confirmed that our current assay detects all reported variants.”

    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 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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  • You need to do this NOW in case of a market plunge

    It’s been good times on the share market since March.

    When you’re enjoying a bull market, it’s human nature to not give much thought to what might happen when everything comes crashing down.

    But more than one equities expert has said it’s important to act quickly and buy up bargains if the market ever slumps.

    “Extreme conditions create the most attractive investing opportunities, with some 90% of market returns being earned over just 5% of trading days,” Collins St Value Fund managing director Michael Goldberg posted this month on Livewire.

    “It’s precisely during those times that all those around you think you are crazy, when even your ‘gut’ insists that you’re making a mistake, that true long term profits are established.”

    Goldberg said one needs to feel uncomfortable to realise comfortable long-term gains.

    “It’s in recognising that discomfort and realising that therein lies the opportunities that the greatest investors make the most spectacular returns.”

    But how can you act quickly when the market heads south? What do you do?

    Prepare now for a market plunge later

    Acting quickly requires much preparation beforehand.

    One of the best things a stock investor can do in good times is to prepare a shopping list for bad times.

    Forager research analyst Chloe Stokes explained in the latest edition of Ask A Fund Manager this week.

    “My biggest regret came during the meltdown in March. We saw brilliant companies like Nike Inc and Lululemon Athletica Inc down more than 30% in a couple of days,” she told The Motley Fool.

    “Those stocks would have been excellent investments at market prices, but because I never thought they were cheap enough to invest any time into, I didn’t have a thesis ready.”

    Stokes is now a firm believer in having a target list ready – full of shares you wouldn’t buy now but would pounce on if they ever sunk.

    “It might seem like a waste of time, but you never know when the opportunity could come along to own a high-quality business at a more than reasonable price,” she said.

    “I wouldn’t want to miss out on owning some of my favourite businesses if the opportunity presents itself again.”

    So create a watch list in a spreadsheet or your stockbroking platform. Write it on a piece of paper, if you have to.

    Brainstorm shares that you wished you owned but never bought because they’ve been too expensive.

    Then for each of them, pick a price at which you’d pounce.

    Buying during a crash not for the faint-hearted

    Mind you, even with a shopping list, it takes courage to buy shares when the market is collapsing.

    Panic and anxiety set in, and even the professionals need plenty of gumption to pull it off.

    Pengana Australian Equities senior fund manager Rhett Kessler called it “reaching across the abyss” — as in jumping over a deep canyon to try to make it to the other side.

    It’s also named “vomit buying”, which might be more literally accurate.

    “You literally buy something, then you stand up. You walk around the desk, trying your hardest to settle your stomach so that you don’t throw up,” said Kessler in October.

    “Then you sit back down, and you buy some more at 5% lower.”

    Even with decades of stock market experience, Kessler found last March very stressful.

    “I can honestly say it was one of the toughest periods in my 30 years of experience in this industry.”

    But Stokes reminds us the target list is worth doing.

    “You go through something like March, and it’s always so upsetting not being able to buy them because you just hadn’t done work.”

    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 Tony Yoo 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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  • BlueScope (ASX:BSL) share price rises after growing HY21 profit by 78%

    Resources shares bluescope profit update share price

    The BlueScope Steel Limited (ASX: BSL) share price is up more than 2% after the steel manufacturing company announced that its profit had more than doubled in the FY21 result.

    BlueScope was positive about the current operating environment despite COVID-19. Here are some of the highlights from the report if you didn’t catch it earlier:

    BlueScope’s FY21 half-year result

    The company said that its net profit after tax (NPAT) grew by 78% to $330.3 million. BlueScope reported that its underlying net profit after tax (NPAT) was $332.8 million.

    Underlying earnings before interest and tax (EBIT) for the half-year was $530.6 million, up 75% compared to the prior corresponding period.

    BlueScope said that it has seen strong volume and improving steel spreads in the largest steelmaking business in Australia and the US. Australian steel products domestic despatches were the highest in a decade, driven by a resurgent residential construction sector.

    The Australian steel products division delivered underlying EBIT of $259.1 million, up 103% compared to the prior corresponding period. There has been particularly strong demand for coated and painted products, leading to the strongest domestic volumes since 2010.

    BlueScope’s building products division for Asia and North America generated underlying EBIT of $150.3 million, up 87% year on year. The North America business improved significantly, due to improved manufacturing performance and cyclical margin expansion. The building North America business saw 189% growth of underlying EBIT to $70.5 million.

    North Star

    BlueScope currently has a plan to expand its North Star mini-mill in Delta, Ohio, by around 850,000 tonnes per annum.

    The company said that over the last six months, work has commenced work on installing the melt shop, caster and shuttle furnace. Equipment continues to be delivered to site, with ancillary equipment such as cranes, water and electricity also being installed.

    Capital management

    BlueScope said that its buy-back programme will remain on hold whilst it’s focusing on investing on the North Star expansion and there is ongoing uncertainty in market conditions.

    However, the board did approve the payment of a 6 cent per share interim unfranked dividend.

    Outlook for the second half of FY21

    The company said that at the beginning of the second half, its order and despatch rates in key markets remain robust. Spot steel spreads in North America are materially higher than both the first half longer-term averages.

    However, it is uncertain whether these conditions will continue throughout the half due to market factors.

    BlueScope is expecting underlying EBIT in the second half of FY21 to be in the range of $750 million to $830 million.

    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 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.

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  • Why the Smart Parking (ASX:SPZ) share price is jumping 14% today

    A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

    The Smart Parking Ltd (ASX: SPZ) is rocketing today after the company announced a favourable outcome on its United Kingdom VAT matters.

    During late afternoon trade, the parking technology company’s shares are up 14.8% to 15.5 cents.

    Let’s take a look at what’s driving the Smart Parking share price higher.

    What did Smart Parking announce?

    In today’s release, Smart Parking advised that it has reached settlement with Her Majesty’s Revenue and Customs (HMRC) on the administration of parking breach notices. The company noted a series of adjustments as a result of the settled dispute. They are as follows:

    • HMRC to withdraw assessments raised in August 2019 for $3 million which were provided for in the FY19 accounts;
    • HMRC to refund an overpayment of input VAT of $2.9 million;
    • Smart Parking to write back its profit of $6.9 million in the prior year input VAT. This consists of reversal of a $4 million provision in the FY20 accounts for unpaid input VAT, and a cash refund of $2.9 million for overpaid input VAT;
    • Smart Parking to withdraw notices of appeal that had been lodged in relation to the matter; and
    • Smart Parking to restrict input VAT on a small number of leased sites where the company acts as principal.

    Smart Parking noted that its pre-tax profit would receive a boost going forward as a result of the applied adjustments. This is due to the agreed method of calculating VAT, which will positively impact the company’s bottom line.

    Smart Parking further stated that if the new method had been implemented across its entire FY20 year, then pre-profit tax would stand $1.7 million higher. The company said that looking ahead, regardless of expanding customer base, customer mix and government lockdowns, there will be significant annual benefits of pre-tax profits.

    Smart Parking share price snapshot

    Over the last 12 months, the Smart Parking share price has been a weak performer due to the negative impact caused by COVID-19. The company’s shares hit a low of 7 cents last March before slowly working their way back up to sit today 20% down on pre-pandemic levels.

    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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    Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Smart Parking 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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  • Why the Emu (ASX:EMU) share price is rocketing 67% today

    gold asx share price rise represented by hands holding pile of gold

    The Emu NL (ASX: EMU) share price is rocketing today, up 62% in afternoon trading after posting gains of more than 118% earlier today.

    Emu shares are surging after the gold explorer released some promising drill results from its Gnows Nest Project in Western Australia.

    What drilling results did Emu report to send shares flying?

    In today’s ASX release, Emu reported its maiden drilling program has confirmed and extended the high-grade gold mineralisation zone at its recently acquired Monte Cristo Gold prospect and its Gnows Nest Gold prospect.

    To date, the company has received assay results from 33 drill holes, or 3,700 metres of its 9,000-metre reverse circulation (RC) drilling program at the project. Extensions to the high-grade gold lode were confirmed both at depth and along strike at Gnows Nest and Monte Cristo.

    Emu stated that extensional drilling continues at its Gnows Nest prospect. The company expects to finalise the drill program by the end of February with additional assay results coming over the next 6 weeks.

    Commenting on the promising drill results, Emu’s Chairman, Peter Thomas said:

    These results provide early and strong encouragement for the potential of a materially large gold deposit emerging at Gnows Nest and could be the catalyst for the Company to transition from explorer to producer near term. Whilst we just might have a cub by the tail at the Gnows Nest Gold Project, we are excitedly awaiting the outcome of active programmes at all our projects during the remainder of the year.

    Emu share price snapshot

    As a microcap minerals explorer, the Emu share price is subject to some big swings. From 25 February 2020 through to 8 April shares plunged 75%. Since 8 April, the Emu share price has rocketed 790%, though not in any kind of straight line.

    With today’s intraday gains factored in, shares of the ASX gold explorer are up 123% over the past 12 months. That compares to flat returns on the All Ordinaries Index (ASX: XAO) over that same time.

    Year-to-date the Emu share price is also up 123%, having started 2021 at 4 cents per share, right where it was trading for at the beginning of 2020.

    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 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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  • Here’s why the Syrah (ASX:SYR) share price is rocketing 15% today

    A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

    The Syrah Resources Ltd (ASX: SYR) share price has been in sensational form on Monday.

    In afternoon trade, the graphite producer’s shares are up over 15% to $1.33.

    This means the Syrah share price is now up 36% year to date. It is also trading within touching distance of its 52-week high.

    Why is the Syrah share price rocketing higher today?

    Investors have been buying Syrah shares on Monday after the release of a very positive announcement.

    Just under 12 months ago the company decided to suspend production at its Balama Graphite Operation in Mozambique. The company made the move in response to COVID-19 impacts.

    Operationally, these impacts led to travel restrictions which were impacting the mobility of the Balama workforce.

    In addition to this, the pandemic led to a reduction in demand for the battery making ingredient due to lockdowns, mobility restrictions, and economic uncertainty negatively impacting electric vehicle sales.

    However, with the worst now appearing to be over and demand for battery making ingredients rebounding very strongly, Syrah has decided to restart production at Balama.

    Management explained that “Syrah is able to manage within current travel restrictions, and market conditions are deemed supportive of recommencing production.”

    What now?

    Syrah advised that it will now progress the recruitment of labour required to restart operations at Balama.

    After which, it estimates that it will commence production at the operation within the next two to three months.

    Is the Syrah share price in the buy zone?

    According to a note out of UBS from last month, its analysts believe the Syrah share price is attractively priced.

    The broker has a buy rating and $1.50 price target on its shares at present. Based on the latest Syrah share price, this implies potential upside of almost 13% for its shares over the next 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.*

    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 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 the Archtis (ASX:AR9) share price opened 17% higher today

    jump in asx share price represented by man leaping up from one wooden pillar to the next

    Archtis Ltd (ASX: AR9) shares were on the move today following the company’s release of its financial results for the half year ending 31 December (H1 FY21). On market open, the Archtis share price surged 16.67% to an intraday high of 35 cents. However, at the time of writing, Archtis shares have retreated back to 30 cents, flat for the day so far.

    Today is also the first day of trading for Archtis shares since the company requested a trading halt on 22 January. This was pending the release of the outcome of its proposed application to the Supreme Court of Western Australia. The application was related to Archtis’ “inadvertent failure to lodge cleansing notices … in relation to various issues of shares during the period from September 2020 to January 2021”.

    Let’s take a look at what the cyber security software solutions provider reported today. 

    What did Archtis report?

    The Archtis share price rocketed higher in the opening minutes of trade after the company reported total revenues for the half year of $1.11 million. That’s up 358% from the $242,00 reported in the first half of the 2020 financial year. Recurring revenues ramped up 355% to reach $459,000.

    Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at negative $941,000, an improvement on the negative $1.80 million reported in the prior corresponding half.

    The company reported a 585% increase in its gross margin to $810,000, up 585%. Its cash balance, following an $8.4 million capital raising during the half, stood at $12.1 million as at 31 December, up 398% from H1 FY20.

    Looking ahead, Archtis said its recently finalised merger with Nucleus Cyber as well as its $4.2 million Australia Defence contract win have helped position it well for additional revenue and licencing growth in the year ahead.

    Commenting on the results, Archtis CEO Daniel Lai said:

    Our prior half year successes will allow us to leverage and drive significant investments towards the expansion of sales distribution and identified market growth opportunities across the next six months and beyond. Our global mission to safeguard the world’s most valuable information is playing out in all regions.

    Archtis Chair Miles Jakeman added:

    We are well positioned to execute on the Board strategy of increasing customer adoption on a global basis through an annual recurring revenue / software licensing model that drives significant margin and predictability over the coming quarters to create shareholder value.

    Among the company’s leading goals for the remainder of the 2021 financial year is to create a United States-based federal and defence-focused business unit.

    Archtis share price snapshot

    The Archtis share price reached an all-time closing high on 24 August of 52 cents. Whilst having dropped to today’s level since then, the Archtis share price remains up around 205% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is flat over that same time.

    Year to date, Archtis shares are down 3.23%.

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    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.

    The post Why the Archtis (ASX:AR9) share price opened 17% higher today appeared first on The Motley Fool Australia.

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