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The Imugene Limited (ASX: IMU) share price is on the move today. This comes after the company announced an update on its Phase 1 clinical trial of its immunotherapy candidate, PD1-Vaxx.

PD1-Vaxx is a B-cell immunotherapy designed to treat tumours by producing polyclonal antibodies that block PD-1 signalling, causing an anti-cancer effect.

During early morning trade, the Imugene share price is 5% higher to 10.5 cents.

Phase 1 progress

In this morning’s release, Imugene advised it has dosed the first patient from the second band of participants in its PD1-Vaxx Phase 1 clinical trial. The patient received a stronger 50 micrograms ‘mid-dose’ level of PD1-Vaxx at the Hackensack University Medical Centre in New Jersey, United States.

Initially, patients in the first cohort were administered 10 micrograms of PD1-Vaxx as monotherapy during the first study.

Imugene noted that there would be three different levels of testing PD1-Vaxx to patients following the cohort review committee (CRC) approval. Previously, Imugene cleared the first checkpoint to increase the dosage of its immunotherapy candidate last month.

The recruitment program for the first-in-human Phase 1 clinical trial consists of people with non-small cell lung cancer.

Imugene’s primary goal for the trial is to determine safety limits and the optimal dosage. In addition, it will carefully monitor efficacy, tolerability and immune response.

Imugene managing director and CEO Leslie Chong commented:

The start of our FDA IND approved clinical trial formally in the USA, the largest pharmaceutical market globally, is a significant milestone for Imugene.

Imugene share price snapshot

The Imugene share price has performed well over the past 12 months, climbing more than 200%.

The company’s shares hit a 52-week low of 1.6 cents in March, before gradually moving higher. In November, its shares reached an all-time high of 14 cents.

On the current share price, Imugene has a market capitalisation of $475 million.

More reading

• Here’s why the Imugene (ASX:IMU) share price is rising 9% today

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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Singular Health Group Ltd (ASX: SHG) is set to float on the ASX today, following a heavily oversubscribed capital raising.

Singular Health officially lists on the ASX

Singular Health shares will be officially listed on the ASX today after the company completed a successful initial public offering (IPO).

The IPO, which offered up to 30 million shares to investors at 20 cents per share was heavily oversubscribed. As a result, Singular Health managed to raise around $6 million upon entering official quotation.

It is understood that five institutional investors participated in the capital raising, along with sophisticated and retail investors.

The successful public offering also gives Singular Health a market capitalisation of around $20 million.

According to the company’s prospectus, the capital raise will provide Singular Health with financial flexibility for research, development and future growth opportunities.

What does Singular Health do?

Singular Health is an Australian based medical imaging company that operates in the 3D medical imaging and printing industry.

The company develops proprietary software and technology which is designed to improve the collection of medical data to inform better health decisions.

Singular Health generates revenue through two primary streams. Firstly, through the upfront revenue from the sale of hardware and secondly through recurring monthly and annual subscription fees.

The company’s Volumetric Rendering Platform technology creates a 3D image viewed in virtual reality using a series of 2D medical images. This technology is used in five of Singular Health’s software products which, according to the company, gives it a competitive edge.

Singular Health advises that its technology can be used across a range of medical applications. These include orthodontics, maxillo-facial surgery, oncology, general surgery and orthopaedics.

MedVR is the company’s flagship product which is listed on the Australian Register of Therapeutic Goods.

According to Singular Health, MedVR software is currently used by medical practitioners, students, hospitals and universities in various countries including Hong Kong, Singapore, South Africa and Switzerland. 

Foolish takeaway

At the time of writing, Singular Health shares are poised to open the trading day at their IPO price of 20 cents per share. Shares in the company are expected to begin trading on the ASX at 11am AESDT. 

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• The AVITA Medical (ASX: AVH) share price plummets almost 6% in early trade
• Bailador Technology Investments (ASX:BTI) share price is pushing higher
• Why the Baby Bunting (ASX:BBN) share price is tumbling 10% lower
• How I’d obtain financial freedom with a passive income from dividend shares

Motley Fool contributor Nikhil Gangaram 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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One of Australia’s most respected tech investors has just unveiled his vision to revolutionise digital infrastructure in Australia.

Bevan Slattery has announced plans to construct HyperOne, a 20,000 kilometre, $1.5 billion hyperscale national fibre network that will create more than 10,000 new jobs during construction.

What is HyperOne?

According to the tech start up, this will be the largest private, independent digital infrastructure project in Australia’s history.

HyperOne will be capable of carrying an enormous 10,000+ terabits per second. To put that into context, it is more traffic than every other national backbone built in Australia’s history combined. It intends to achieve this while remaining carbon neutral.

It will also be the most complete national fibre backbone ever constructed and the first built in almost two decades.

Mr Slattery commented: “Our existing backbone networks are on average 20 years old and the newest network was built back on 2003 when the Nokia 3310 was Australia’s newest phone, 85% of Australian internet connections were still dial-up and “Friends” were still on TV! Built before Cloud, the iPhone 3G let alone 4G/5G. It’s time for Australia to have tomorrow’s network today.”

The company notes that it will open up the north of Australia and provide valuable on-and-off-ramps to underserved regions across the country. It is also expected to be a significant job creator at a critical time for the country. HyperOne intends to partner with local industry in each state during its roll out.

According to Mr Slattery, HyperOne will support industries such as cloud computing, data centres, environmental sciences, space vehicle launch, aerospace, satellite, and defence. It will also provide transmission to local distribution networks such as the National Broadband Network and mobile operators. This could include the likes of Telstra Corporation Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPG).

Can you buy HyperOne shares on the ASX?

Unfortunately for investors, at this stage HyperOne is a private business and isn’t listed on the Australian share market.

However, Bevan Slattery has previously founded and then listed companies including Megaport Ltd (ASX: MP1), NEXTDC Ltd (ASX: NXT), and Superloop Ltd (ASX: SLC). So, an ASX listing in the future could be a real possibility.

More reading

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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 and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended MEGAPORT 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 AVITA Medical Inc (ASX: AVH) share price has plunged in opening trade today after the company released its second-quarter results for the fiscal year 2021. 

At the time of writing, the AVITA share price is trading at 5.85% lower at $6.55.

AVITA Medical is a regenerative medicine group that aims to address unmet medical needs in burn injuries, trauma injuries, chronic wounds and dermatological and aesthetics indications. The company endeavours to advance care for burn patients with its novel technology platform, the RECELL System. AVITA is also listed on the NASDAQ stock exchange in the United States under the ticker RCEL.

Let’s take a look at its quarterly results for the period ended 31 December 2020.

Financial results

The company reported a US-based RECELL revenue of $5.0 million. This is a 62% increase compared to the same quarter of the prior year.

Total global revenue increased 57% compared to the previous corresponding period (pcp), coming in at $5.1 million.

Operating expenses decreased to $10.4 million for the period compared to $13.4 million in the pcp.  AVITA attributes the savings partially to lower legal costs and lower stock-based compensation.

As of 31 December 2020, the company held $59.8 million in cash.

AVITA did not provide financial guidance due to current uncertainty stemming from coronavirus. The company advised that because it gained its revenue via 20 accounts with physicians, its accounts were susceptible to the impacts of COVID-19. This was currently creating an unpredictable business space.

AVITA reported a net loss of $5.6 million for the quarter, compared to the net loss of $10.5 million for the same quarter in the previous year.

CEO commentary and AVITA share price snapshot

AVITA Medical CEO Dr Mike Perry made the following comments:

I’m proud of our progress over the last quarter as we strive to broaden the applications of our platform to serve patients. With our burn centre account base now mostly built out, our sales team is poised and ready to drive utilisation as the pandemic abates and we regain access to hospitals and patients.

We have continued to make strong progress with our vitiligo pivotal trial, seeing very encouraging interest and enrolment trends, and we believe this could put us in a position to file for FDA approval in 2022.

The AVITA Medical share price has fallen more than 56% over the previous 12-month period. Year-to-date, the share price has gained around 44%.

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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 Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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The Bailador Technology Investments Ltd (ASX: BTI) share price is pushing higher today following the release of its half year results.

At the time of writing, the technology investment company’s shares are up 1% to $1.34.

How did Bailador perform in the first half?

For the six months ended 31 December, Bailador reported a gain on financial assets and marketable securities of $23.5 million. This was up 865% compared to the prior corresponding period.

This ultimately led to the company reporting a net profit of $13.1 million for the half. This compares to a profit of just $118,000 in the same period last year.

Also growing was Bailador’s pre-tax net tangible assets. It increased 12.3% to $1.39 per share.

What were the drivers of its growth?

The company’s investment in Instaclustr was a highlight during the half. Its valuation increased 42.2% following another strong 12-month period of growth. Instaclustr provides managed and supported open source solutions to businesses.

Also supporting its growth was an $11.5 million revaluation of Stackla. It was previously valued at $0, but this has been amended after demonstrating business performance and market attractiveness.

The valuation of its stake in Straker Translations Ltd (ASX: STG) was marked to market and up 71.4% compared to a year earlier. This was driven largely by the announcement of a new global translation agreement with IBM.

Bailador’s Co-Founder and Managing Partner, David Kirk, said: “We are very pleased with the performance of the portfolio during a tumultuous period. No emergency capital raisings were required, and the businesses all have healthy sustainable models. The quality of the businesses and management teams has the portfolio well positioned for continued growth.”

More growth ahead?

In an accompanying presentation, management pointed out that its portfolio ended 2020 conservatively valued. It estimates that its portfolio trades on an EV/LTM revenue multiple of ~6x.

This compares to an average of 19x for its peers, which it feels allows for material upside to returns

Outlook

Bailador expects 2021 to be a significant year for profitable realisations.

Bailador’s other Co-Founder and Managing Partner, Paul Wilson, commented: “A number of our Bailador portfolio companies represent attractive acquisition targets or IPO candidates. Harvesting gains is a key element of our business, and we are aiming to provide significant positive news to the market on these companies during the coming months.”

More reading

• Is HyperOne listed on the ASX?
• The AVITA Medical (ASX: AVH) share price plummets almost 6% in early trade
• Why the Baby Bunting (ASX:BBN) share price is tumbling 10% lower
• How I’d obtain financial freedom with a passive income from dividend shares
• Take a look at the ASX’s new cloud ETF

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bailador Technology Investments Limited and Straker Translations. 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 Baby Bunting Group Ltd (ASX: BBN) share price is on course to end the week on a disappointing note.

In morning trade, the baby products retailer’s shares are down 10% to $5.05.

Why is the Baby Bunting share price tumbling lower?

Investors have been selling Baby Bunting shares this morning following the release of its half year results.

According to the release, for the six months ended 31 December, Baby Bunting delivered exceptionally strong sales and profit growth.

Following a 15% increase in comparable store sales (or 21.8% excluding Victorian stores) and a 95.9% increase in online sales, the company delivered a 16.6% increase in total sales to $217.3 million.

And thanks 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. This result was achieved without any government support during the pandemic.

Its margin improvement was driven by private label growth and stronger buying power.

In light of its strong profit growth, the Baby Bunting board elected to increase its fully franked interim dividend by 41.4% to 5.8 cents per share.

How does this compare to expectations?

Although the company delivered very strong sales and profit growth, the latter fell short of expectations. This appears to be what is weighing on the Baby Bunting share price today.

According to Morgans, its analysts were expecting a 53% increase in net profit to $11.4 million. This compares to its actual profit growth of 43.5% to $10.8 million.

Mangement commentary

Baby Bunting’s CEO & Managing Director, Matt Spencer commented: “Maternity and baby goods are essential products for parents and parents-to-be and are less discretionary in nature. Our strong comparable store and total sales growth performance demonstrates that we continue to deliver on our strategy of growing market share.”

“Sales in all channels were up. Our online sales growth in the half was very pleasing, with total online sales (including click & collect) up 95.9%. Significantly, we still have over 90% of sales occurring or being completed in our stores highlighting the importance of our store network across Australia. And we continue to progress our store network expansion in Australia with three stores opened in the half and more planned for the period ahead,” he added.

At the end of the period there were 59 Baby Bunting stores around Australia, with plans to see a network of over 100 stores in the country in the future.

The company also revealed that after a successful online launch in New Zealand, it now plans to open its first physical store in the country in FY 2022.

Outlook

Baby Bunting has started the second half in equally positive form.

Management advised that it achieved comparable store sales growth of 18.5% during the first six weeks of the second half. This lifts its year to date comparable store sales growth to 15.7%.

However, due to COVID-19 uncertainty, it was unable to provide guidance at this point.

More reading

• 2 ASX shares rated as strong buys by brokers
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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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When buying dividend shares, it is tempting to purchase the highest-yielding stocks to generate the largest passive income possible.

However, this strategy can cause a couple of issues. First, high-yielding stocks could struggle to afford their current payouts because of financial challenges. Second, high-yielding stocks may not offer strong dividend growth. This could make them less attractive over the long run.

As such, focusing on the reliability of dividends, as well as their growth prospects, could be a means of securing financial freedom via income stocks.

Buying dividend shares with a robust passive income

A reliable passive income is likely to be a key part of achieving financial freedom for most people. For example, a consistent income provides security, whereas a volatile income can mean budgeting challenges that impact negatively on quality of life.

As such, it is important to check whether a company can afford its dividends in a variety of market conditions. One means of doing this is making sure that they are covered by profit, so that if sales fall due to weak operating conditions they are less likely to affect the dividend. Furthermore, considering whether a company’s business model is highly correlated to the performance of the economy could be a shrewd move. Defensive stocks that provide greater resilience in times of economic uncertainty could be more attractive than cyclical businesses.

Purchasing dividend stocks with growth potential

In order to achieve financial freedom, it is important to have a passive income that grows by at least as much as inflation each year. If it does not, an investor may find that their spending power is gradually reduced. Over time, this can mean that an individual’s lifestyle is severely impacted – especially since a higher rate of global inflation may be ahead because of the loose monetary policies being pursued.

Clearly, assessing the dividend growth potential for any company is subjective. However, by analysing factors such as its long-term industry outlook, market position and strategy, it is possible to build a picture as to whether it is likely to provide a growing passive income to its investors in the coming years.

Holding cash for emergencies

Inevitably, there will be times when an investor requires access to cash that is above and beyond their regular passive income. For example, this may be due to one-off repairs to a house or car that were unexpected. As such, it is important to have some emergency cash available for these kinds of situations.

This does not mean relying on cash for a return. However, it does mean having some savings in place that can supplement an income from dividend shares when needed. This can help an investor to enjoy greater financial freedom, with less worry, in the long run.

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Motley Fool contributor Peter Stephens 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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The ASX is set to welcome yet another exchange-traded fund (ETF). ETF provider BetaShares has announced that a new thematic fund is set to join its ranks soon – and it will track companies that operate in the cloud.

What is BetaShares

BetaShares is one of the ASX’s most well-known ETF providers. It currently offers a range of ETFs that span simple market-tracking index funds like the BetaShares Australia 200 Fund (ASX: A200) to specialised thematic ETFs like the BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ).

What’s this new cloud ETF?

BetaShares has announced that the new ETF will be named the BetaShares Cloud Computing ETF, with the ticker code CLDD. There aren’t too many additional details just yet, but here’s what we know. Firstly, BetaShares has given away that Xero Limited (ASX: XRO) will feature, along with Shopify Inc (NYSE: SHOP), DropBox Inc (NASDAQ: DBX), and Zoom Video Communications Inc (NASDAQ: ZM).

BetaShares tells us that this new ETF will aim to bring 3 benefits to ASX investors: growth potential from the cloud growth space, a ‘pure-play’ exposure to the cloud, and diversification from a basket of shares that are underrepresented on the ASX.

The ETF will track an index dedicated to following the cloud computing sector. This index looks to be the Indxx Global Cloud Computing Index. This index holds 36 stocks, with the top 5 constituents being Fastly, Zscaler, Shopify, Proofpoint and Twilio.

It also holds some of the larger, more familiar cloud giants like Amazon, Microsoft, Alibaba, Alphabet and Netflix.

What kind of performance can we expect?

Well, the ETF hasn’t even launched yet, so take this with a grain of salt. But according to BetaShares, “the index that CLDD will aim to track” has delivered an annual average performance (in Australian dollar terms) of 34.4% per annum between November 2013 and the end of January 2021. Of course, past performance is no indication of future returns. But it is informative knowing that this index will have some nice historical returns behind it.

BetaShares has not yet told us when this ETF will hit the ASX boards. But all ASX cloud enthusiasts should watch this space!

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Dropbox, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Amazon, Microsoft, Netflix, Shopify, Twilio, and Zoom Video Communications and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Netflix, Twilio, and Zoom Video Communications. 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 Telstra Corporation Ltd (ASX: TLS) share price was a positive performer on Thursday.

The telco giant’s shares rose 2.5% to $3.25 following the release of its half year results.

Is it too late to buy Telstra shares?

According to analysts at Goldman Sachs, they still believe there’s a lot of value in the Telstra share price at the current level.

This morning the broker retained its buy rating and lifted its price target on the company’s shares to $4.00.

Based on the current Telstra share price, this price target implies potential upside of 23% over the next 12 months excluding dividends. This potential return stretches to approximately 28% if you include the 16 cents per share dividend the company plans to pay.

What did Goldman say?

The broker notes that management is suggesting that an earnings’ inflection is imminent in the second half of FY 2021.

This is expected to be driven by ongoing cost reductions and a robust mobile service revenue outlook. Goldman explained that the latter is due to its positive average revenue per user (ARPU) outlook and ongoing strength in sub growth, supported by the clear 5G lead that Telstra holds.

Its analysts believe this makes Telstra’s dividend secure.

It commented: “Telstra indicated that it would pay 16¢ in FY21, which we believe is sustainable in FY22, given we forecast FY22 FCF/share of 24cps, with lost NBN earnings / WC build (mobile hardware) mostly offset by underlying EBITDA growth and lower capex.”

The broker then believes that Telstra can sustain this dividend from earnings per share from FY 2023. Though, it suspects there could be upside risk due to its belief that its future free cash flows could provide for a larger payout.

Is a re-rate of the Telstra share price coming?

Goldman believes that the Telstra share price could re-rate to higher multiples as the market becomes more confident on its earnings.

It concluded: “We stay Buy on Telstra ahead of the earnings’ inflection, believing that it will re-rate as it becomes a ‘simpler’ telco post NBN completion, along with further upside from possible asset monetisations; Catalysts include: (1) Tower update in March; (2) FY21 results and corresponding mobile inflection in August; and (3) Nov-20 ID when post T22 plans are outlined.”

More reading

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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 and has recommended Telstra 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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The Kathmandu Holdings Ltd (ASX: KMD) share price is on watch today following the Kiwi retailer’s trading update.

Why is the Kathmandu share price on watch?

Kathmandu reported record Rip Curl performance leading to strong half-year earnings before interest, tax, depreciation and amortisation (EBITDA).

Kathmandu reported half-year total group sales up ~12% to the six months ended 31 January 2021 (1H 2021). 

The retailer said half-year sales growth reflected the successful integration of Rip Curl and a diversified portfolio of brands. However, Kathmandu sales were impacted by low demand for insulation and rainwear due to reduced international travellers in the Northern Hemisphere.

Kathmandu expects to report unaudited group EBITDA above last year thanks to the strong Rip Curl result. Half-year EBITDA is expected to be in the range of $47 million to $49 million. 

That result came from across key global markets despite coronavirus disruptions. Sixty Melbourne stores were closed for 11 weeks in Victoria’s second lockdown with 14 Auckland stores closed for over two weeks.

The Kathmandu share price is one to watch as investors digest the latest numbers.

The retailer intends to report its half-year results on Tuesday 23 March including an announcement regarding dividend resumption.

Group CEO Xavier Simonet said the record result “highlights the strength of its brand and quality technical products”. Forward orders for the Rip Curl wholesale business are above pre-COVID levels with “encouraging early indications for future seasons”, Mr Simonet added.

The search continues for a new CEO following the resignation of Mr Simonet in November 2020.

The Kathmandu share price has slumped nearly 49% in the last 12 months after being slammed in the March bear market.

Foolish takeaway

Kathmandu has entered the second half of the financial year with strong momentum. That’s despite COVID-19 disruptions such as store lockdowns across major markets.

The record Rip Curl result has underpinned an uplift in EBITDA which makes the Kathmandu share price worth watching in early trade.

More reading

• With retail sales numbers rising, how are these 3 ASX shares performing?

Motley Fool contributor Ken Hall 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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